Samruddhi Cement

Mr. G. D. Birla and Mr. Aditya Birla, our founding fathers.

We live by their values.
Integrity, Commitment, Passion, Seamlessness and Speed
SAMRUDDHI CEMENT LIMITED

BOARD OF DIRECTORS Executives

Mr. Kumar Mangalam Birla, Chairman Mr. R. K. Shah Group Executive President &
CMO (Mfg. & Projects)
Mr. R. C. Bhargava
Mr. G. M. Dave Mr. S. N. Jajoo Chief Marketing Officer

Mr. N. J. Jhaveri Mr. K.C. Birla Sr. Executive President

(Finance)
Mr. S. B. Mathur
Unit Heads
Mr. Adesh Gupta
Mr. R. M. Gupta Vikram Cement Works
Mr. O. P. Puranmalka
Mr. D. R. Dhariwal Birla White
Mr. Ashok Malu
Mr. S. K. Gupta Rajashree Cement Works
Mr. S. Natarajan Reddipalayam Cement Works
Mr. M. M. Tiwari Rawan Cement Works
Mr. B. B. Joshi Aditya Cement Works
Mr. V. K. Jain Kotputli Cement Works

Company Secretary Auditors

Mr. Kamal Rathi M/s. G. P. Kapadia & Co., Chartered Accountants,
Mumbai
M/s. Deloitte Haskins & Sells, Chartered Accountants,
Mumbai

Solicitors
M/s. Amarchand & Mangaldas & Suresh A. Shroff & Co.,
Mumbai

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CONTENTS

Notice ................................................................ 3

Management Discussion and Analysis .................. 11

Report on Corporate Governance ....................... 15

Sustainability Report/Inclusive Growth .................. 22

Environment Report ............................................. 25

Directors’ Report ................................................. 26

Auditors’ Report .................................................. 34

Balance Sheet .................................................... 38

Profit and Loss Account ....................................... 39

Schedules ........................................................... 40

Cash Flow Statement .......................................... 62

Statement Relating to Subsidiary Company ........... 64

Consolidated Financial Statements ....................... 65

Subsidiary Company’s Reports and Accounts ....... 83

REGISTERED OFFICE: Birladham, Kharach, Kosamba 394 120, Dist. Bharuch (Gujarat)
Tel. : (02646) 270001-05 Fax : (02646) 270010
www.adityabirla.com/samruddhicement.htm
REGISTRAR & TRANSFER AGENT: Sharepro Services (India) Private Limited, 13AB, Samhita Warehousing Complex, 2nd
Floor, Sakinaka Telephone Exchange Lane, Off. Andheri Kurla Road, Sakinaka, Andheri (East), Mumbai 400 072
Tel. : (022) 6772 0300 / 6772 0400 Fax : (022) 2859 1568 / 2850 8927
email : scl@shareproservices.com

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N OT I C E
NOTICE is hereby given that the First Annual
General Meeting of the shareholders of Samruddhi
Cement Limited will be held at the Registered Office
of the Company at Birladham, Kharach, Kosamba
394 120, Dist. Bharuch (Gujarat) on Saturday, the
24th day of July, 2010 at 12.30 P.M. to transact,
with or without modifications, as may be permissible,
the following business:
ORDINARY BUSINESS:
1. Adoption of Accounts
To receive, consider and adopt the Audited
Balance Sheet as at 31st March, 2010 and the
Profit and Loss Account for the period ended
31st March, 2010 and the Reports of the
Directors and the Auditors thereon.
2. Declaration of Dividend
To declare dividend on Equity Shares for the
period ended 31st March, 2010.
3. Re-appointment of Mr. Adesh Gupta
To appoint a Director in place of Mr. Adesh
Gupta, who retires from office by rotation, and
being eligible, offers himself for re-appointment.
4. Appointment of Statutory Auditors
To consider and, if thought fit, to pass the
following resolution as an Ordinary Resolution
relating to the appointment of Auditors of the
Company:
“RESOLVED that pursuant to the provisions of
Section 224 and other applicable provisions, if
any, of the Companies Act, 1956, M/s. G.P.
Kapadia & Co., Chartered Accountants,
Mumbai (Registration No. 104768W) and
M/s. Deloitte Haskins & Sells, Chartered
Accountants, Mumbai (Registration No.
117366W), be and are hereby re-appointed
as the Joint Statutory Auditors of the Company
to hold office as such from the conclusion of
this Annual General Meeting until the
conclusion of the next Annual General Meeting
of the Company, at such remuneration to each
of them, plus service tax as applicable and
reimbursement of actual out of pocket expenses
as may be incurred in the performance of their
duties, as the Audit Committee / Board of
Directors may fix in this behalf.”
SPECIAL BUSINESS:
5. Appointment of Mr. O.P. Puranmalka as a
Whole-Time Director for the period 16th
February, 2010 to 31st March, 2010.
To consider, and if thought fit, to pass the
following Resolution as a Special
Resolution:
“RESOLVED THAT upon effectiveness of the
Scheme of Arrangement between Grasim
Industries Limited (“Grasim”) and the Company
(“the Scheme”), whereby the Cement Business
of Grasim has been transferred to the Company
pursuant to the Scheme under Sections 391 to
394 of the Companies Act, 1956, (“the Act”)
consent of the Company be and is hereby
granted to the appointment of Mr. O.P.
Puranmalka, a Director of the Company, who
is deemed to be treated as Whole Time Director
of the Company with effect from 16th February,
2010 to 31st March, 2010 under the provisions
of Sections 198, 269, 309, 310 and 314 read
with Schedule XIII and other applicable
provisions, if any, of the Act (including any
statutory modification or re-enactment thereof,
for the time being in force), the relevant
provisions of the Articles of Association of the
Company and all applicable guidelines issued
by the Central Government from time to time,
on the following terms and conditions including
remuneration, viz.:
A. Period: 16 th February, 2010 to
31st March, 2010.
B. Remuneration:
1. Basic Salary: Rs.9,41,900/- (Rupees
Nine lacs forty one thousand nine
hundred only) per month.
2. Special Allowance: Rs. 7,50,000/-
(Rupees Seven lacs fifty thousand only)
per month. This allowance however will
not be taken into account for
calculation of retiral benefits such as
Provident Fund, Gratuity,
Superannuation, Leave Encashment,
etc.
3. Variable Pay: Performance Bonus
Linked to the achievement of targets
as may be decided by the Board
subject to a maximum of
Rs.2,25,00,000/- (Rupees Two crores
twenty five lacs only) per annum.
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 4. Long-term Incentive Compensation
(LTIC) / Employee Stock Option: As
per the Plan applicable to the Senior
Executives of the Company/Aditya Birla
Group including that of any parent/
subsidiary company.
C. Perquisites
i. Housing: Free furnished
accommodation or HRA @ 50% of
Basic Salary in lieu of Company
provided accommodation.
ii. Reimbursement of expenses on actual
pertaining to electricity, gas, water,
telephone and other reasonable
expenses for the upkeep and
maintenance in respect of such
accommodation.
iii. Medical Expenses: Reimbursement of
all expenses incurred in India for self
and family at actual (including
domiciliary and medical expenses and
insurance premium for medical and
hospitalisation policy, as applicable).
iv. Leave Travel Expenses: Leave Travel
Expenses for self and family in
accordance with the Rules of the
Company.
v. Club Fees: Fees of one Corporate Club
in India (including admission and
membership fee).
vi. Personal Accident Insurance Premium:
For self and family as per the Rules of
the Company.
vii. (a) Company’s contribution towards
Provident Fund and
Superannuation Fund, on Basic
Salary as per the Rules of the
Company.
(b) Gratuity calculated on Basic Salary
as per the Rules of the Company.
viii. Car: Company maintained two Cars,
as per the Rules of the Company.
ix. Leave and encashment of leave: As
per the Rules of the Company.
x. Reimbursement of entertainment,
travelling and all other expenses
incurred for the business of the
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Company as per the Rules of the
Company. Travelling expenses of
spouse accompanying the Whole-time
Director on any official overseas or
inland trip will be governed as per the
Rules of the Company.
xi. Other Allowances / benefits /
perquisites : Any other allowances,
benefits and perquisites as per the Rules
applicable to the Senior Executives of
the Company and / or which may
become applicable in the future and /
or any other allowance, perquisites as
the Board may from time to time
decide.
xii. Any other one time / periodic
retirement allowances / benefits as may
be decided by the Board at the time
of retirement.
xiii. Subject as aforesaid, the Whole-time
Director shall be governed by such
other Rules as are applicable to the
Senior Executives of the Company from
time to time.
The aggregate of the remuneration and
perquisites as aforesaid shall not exceed
the limits prescribed from time to time under
Sections 198, 309, 310 and all other
applicable provisions of the Act, read with
Schedule XIII to the said Act or any statutory
modifications or re-enactment thereof for
the time being be in force, or otherwise as
may be permissible at law.
For the purposes of Gratuity, Provident
Fund, Superannuation and other like
benefits, if any, the service of Mr. O. P.
Puranmalka, Whole-time Director will be
considered as continuous service with the
Company from the date of his joining the
Aditya Birla Group.
So long as Mr. Puranmalka functioned as
the Whole Time Director, he was not paid
any fees for attending the meetings of the
Board of Directors of the Company or any
Committee(s) thereof. Though, considering
the provisions of Section 314(1) of the Act,
Mr. Puranmalka would not be holding any
office or place of profit by his being a
 mere director of the Company ’s
subsidiary(s)/ Joint Venture(s), approval be
and is hereby also granted by way of
abundant caution for him to accept the
sitting fees / commission payable to other
directors for attending meetings of Board(s)
of Directors/ Committee(s) of subsidiary(s)/
Joint Venture(s) of the Company or
companies promoted by the Aditya Birla
Group.”
“RESOLVED FURTHER THAT the
remuneration payable/paid to Mr.
Puranmalka as aforesaid shall be subject
to the applicable provisions of Schedule
XIII of the Act.”
“RESOLVED FURTHER THAT all actions
taken so far by the Company in or in
relation to the aforesaid matters be and
are hereby ratified and approved.”
“RESOLVED FURTHER THAT the Board
be and is hereby authorized to do all such
acts, deeds, matters and things as may be
deemed necessary to give effect to the
above resolution.”
6. Appointment of Mr. O.P. Puranmalka as a
Director
To appoint Mr. O.P. Puranmalka (who was
appointed as an Additional Director by the
Board of Directors pursuant to the provisions
of Company’s Articles of Association and who
holds office under the provisions of Company’s
Articles of Association and Section 260 of the
Companies Act, 1956 (“the Act”) only up to
the date of this meeting, and in respect of
whom the Company has received a notice in
writing along with a deposit of Rs.500 under
Section 257 of the Act, from a member
signifying his intention to propose Mr. O.P.
Puranmalka as a candidate for the office of
Director) as a Director of the Company and to
consider and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956, Mr. O.P.
Puranmalka be and is hereby appointed as a
Director of the Company liable to retire by
rotation.”
7. Appointment of Mr. Kumar Mangalam Birla
as a Director
To appoint Mr. Kumar Mangalam Birla (who
was appointed as an Additional Director by the
Board of Directors pursuant to the provisions
of Company’s Articles of Association and who
holds office under the provisions of Company’s
Articles of Association and Section 260 of the
Companies Act, 1956 (“the Act”) only up to
the date of this meeting, and in respect of
whom the Company has received a notice in
writing along with a deposit of Rs.500 under
Section 257 of the Act, from a member
signifying his intention to propose Mr. Kumar
Mangalam Birla as a candidate for the office
of Director) as a Director of the Company and
to consider and, if thought fit, to pass the
following resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956, Mr. Kumar
Mangalam Birla be and is hereby appointed
as a Director of the Company liable to retire
by rotation.”
8. Appointment of Mr. R.C. Bhargava as a
Director
To appoint Mr. R.C. Bhargava (who was
appointed as an Additional Director by the
Board of Directors pursuant to the provisions
of Company’s Articles of Association and who
holds office under the provisions of the
Company’s Articles of Association and Section
260 of the Companies Act, 1956 (“the Act”)
only up to the date of this meeting, and in
respect of whom the Company has received a
notice in writing along with a deposit of Rs.
500 under Section 257 of the Act, from a
member signifying his intention to propose Mr.
R.C. Bhargava as a candidate for the office of
Director) as a Director of the Company and to
consider and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956, Mr. R.C.
Bhargava be and is hereby appointed as a
Director of the Company liable to retire by
rotation.”
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9. Appointment of Mr. G.M. Dave as a
Director
To appoint Mr. G.M. Dave (who was appointed
as an Additional Director by the Board of
Directors pursuant to the provisions of
Company’s Articles of Association and who
holds office under the provisions of Company’s
Articles of Association and Section 260 of the
Companies Act, 1956 (“the Act”) only up to
the date of this meeting, and in respect of
whom the Company has received a notice in
writing along with a deposit of Rs. 500 under
Section 257 of the Act, from a member
signifying his intention to propose Mr. G.M.
Dave as a candidate for the office of Director)
as a Director of the Company and to consider
and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956,
Mr. G.M. Dave be and is hereby appointed as
a Director of the Company liable to retire by
rotation.”
10. Appointment of Mr. N.J. Jhaveri as a
Director
To appoint Mr. N.J. Jhaveri (who was appointed
as an Additional Director by the Board of
Directors pursuant to the provisions of
Company’s Articles of Association and who
holds office under the provisions of Company’s
Articles of Association and Section 260 of the
Companies Act, 1956 (“the Act”) only up to
the date of this meeting, and in respect of
whom the Company has received a notice in
writing along with a deposit of Rs. 500 under
Section 257 of the Act, from a member
signifying his intention to propose Mr. N.J.
Jhaveri as a candidate for the office of Director)
as a Director of the Company and to consider
and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
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“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956, Mr. N.J.
Jhaveri be and is hereby appointed as a Director
of the Company liable to retire by rotation.”
11. Appointment of Mr. S.B. Mathur as a
Director
To appoint Mr. S.B. Mathur (who was appointed
as an Additional Director by the Board of
Directors pursuant to the provisions of
Company’s Articles of Association and who
holds office under the provisions of Company’s
Articles of Association and Section 260 of the
Companies Act, 1956 (“the Act”) only up to
the date of this meeting, and in respect of
whom the Company has received a notice in
writing along with a deposit of Rs. 500 under
Section 257 of the Act, from a member
signifying his intention to propose Mr. S.B.
Mathur as a candidate for the office of Director)
as a Director of the Company and to consider
and, if thought fit, to pass the following
resolution as an Ordinary Resolution:
“RESOLVED that pursuant to the provisions of
Section 257 and all other applicable provisions,
if any, of the Companies Act, 1956, Mr. S.B.
Mathur be and is hereby appointed as a
Director of the Company liable to retire by
rotation.”
By Order of the Board
Kamal Rathi
Company Secretary
Place: Mumbai
Date: 21st June, 2010
NOTES FOR MEMBERS’ ATTENTION AND
INFORMATION FOR MEMBERS’:
1) A MEMBER ENTITLED TO ATTEND AND VOTE
AT THE MEETING IS ENTITLED TO APPOINT
A PROXY TO ATTEND AND VOTE INSTEAD
OF HIMSELF / HERSELF AND THE PROXY
NEED NOT BE A MEMBER OF THE COMPANY.
THE INSTRUMENT APPOINTING A PROXY
SHOULD, HOWEVER, BE DEPOSITED AT THE
REGISTERED OFFICE OF THE COMPANY NOT
LESS THAN FORTY-EIGHT HOURS BEFORE
THE COMMENCEMENT OF THE MEETING.
2) An Explanatory Statement pursuant to Section
173 (2) of the Companies Act, 1956, in respect
of items 5 to 11 of the Notice as set out above,
is annexed hereto.
3) The Register of Members and Share Transfer
Books of the Company will remain closed from
16th July, 2010 to 24th July, 2010 (both days
inclusive) for the purpose of payment of
dividend, if approved by the Members.
4) The dividend, as recommended by the Board,
if approved at the Annual General Meeting,
will be paid on or after 24th July, 2010 to
those Members or their mandates whose names
are registered on the Company’s Register of
Members:
a) as Beneficial Owners as at the end of
business on 15th July, 2010 as per the lists
to be furnished by National Securities
Depository Limited (NSDL) and Central
Depository Services (India) Limited (CDSL)
in respect of the shares held in electronic
form, and
b) as Members in the Register of Members of
the Company after giving effect to all valid
share transfers in physical form which are
lodged with the Company or its Registrar
& Transfer Agents (RTA) viz. Sharepro
Services (India) Private Limited having their
address at 13AB, Samhita Warehousing
Complex, 2nd Floor, Sakinaka Telephone
Exchange Lane, Off Andheri Kurla Road,
Sakinaka, Andheri (East),
Mumbai - 400 072 on or before 15th July,
2010.
5) a) Shareholders are requested to notify any
change of address:
(i) to their Depository Participants (DPs)
in respect of the shares held in demat
form, and
(ii) to the Company’s Registrar & Transfer
Agents at below mentioned address,
in respect of the shares held in physical
form together with a proof of address
viz., Electricity Bill, Telephone Bill,
Ration Card, Voter ID Card, Passport,
etc.:
Share pro Services (India) Private
Limited
Unit: Samruddhi Cement Limited
13 AB, Samhita Warehousing Complex
2 nd Floor, Sakinaka Telephone
Exchange Lane, Off Andheri Kurla
Road, Sakinaka,
Mumbai – 400 072
b) In case the mailing address mentioned on
this Annual Report is without the PINCODE,
shareholders are requested to kindly inform
their PINCODE immediately to their DP or
the Company’s Registrar and Transfer
Agents as the case may be, as mentioned
above.
6) Non-Resident Indian Shareholders are requested
to inform the Registrar and Transfer Agents of
the Company or their concerned DP, as the
case may be, immediately:-
a) the change in the residential status on
return to India for permanent settlement,
b) the particulars of the NRE Account with a
bank in India, if not furnished earlier.
7) Shareholders are requested to correspond in
connection with the shares held by them by
addressing letters directly to the Registrar and
Transfer Agents of the Company and not to the
Company, quoting reference of their folio
numbers or their Client ID number with DP ID
number, as the case may be.
8) Shareholders who are holding shares in identical
order of names in more than one folio are
7
 requested to send to the Registrar and Transfer
Agents of the Company the details of such
folios together with the original Share
Certificates for consolidation of their holdings
in one folio. The Share Certificates will be
returned to the Shareholders after making
requisite changes thereon.
9) As per the provisions of the amended
Companies Act, 1956, facility for making
nominations is now available to INDIVIDUALS
holding shares in the Company. Shareholders
holding shares in physical form may obtain the
Nomination Form – 2B prescribed by the
Government from the Registar and Transfer
Agents of the Company. Shareholders holding
shares in demat form are required to approach
their respective DPs for the nomination.
10) a) Shareholders are advised to avail of the
facility for receipt of future dividends
through Electronic Clearing Service (ECS).
Shareholders holding shares in
dematerialised mode are requested to
contact their respective DPs for availing ECS
facility. Shareholders holding shares in
physical form are requested to collect the
ECS form from the Registrar and Transfer
Agents and the same duly filled up and
signed along with a Xerox copy of a
cancelled cheque may be sent to the
Registrar and Transfer Agents of the
Company.
b) To avoid the incidence of fraudulent
encashment of the dividend warrants,
Shareholders are requested to intimate the
Company under the signature of the Sole/
First Joint holder, the following information,
so that the Bank Account Number and
Name and address of the Bank can be
printed on the dividend warrants:-
1) Name of Sole/First Joint holder and
Folio No.
2) Particulars of Bank Account, viz.
i) Name of the Bank
ii) Name of Branch
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iii) Complete address of the Bank with
Pin code Number
iv) Account Type, whether Savings (SB)
or Current Account (CA)
v) Bank Account Number allotted by
the Bank
11) Shareholders who hold shares in the
dematerialised form and desire a change /
correction in the bank account details, should
intimate the same to their concerned DP and
not to the Registrar and Transfer Agents of the
Company. Shareholders are also requested to
give the MICR Code of their bank to their DPs.
The Company will not entertain any direct
request from such shareholders for change of
address, transposition of names, deletion of
name of deceased joint holder and change in
the bank account details. The said details will
be considered as will be furnished by the DPs
to the Company.
12) Shareholders desirous of obtaining any
information / clarification on the accounts and
operations of the Company are requested to
send in written queries to the Company, atleast
one week before the date of the meeting.
Replies will be provided in respect of such
written queries received, only at the meeting.
13) Pursuant to the requirement of the Listing
Agreement of the Stock Exchanges on
Corporate Governance, relating to appointment
of the Directors / reappointment of the retiring
Directors, a statement containing the required
details of the concerned Directors forms part
of the Report on Corporate Governance.
14) In terms of circulars issued by Securities and
Exchange Board of India (SEBI), it is now
mandatory to furnish a copy of PAN card to
the Company or its RTA in the following cases
viz. Transfer of shares, Deletion of name,
Transmission of shares and Transposition of
shares. Shareholders are requested to furnish
copy of PAN card for all the abovementioned
transactions.
ANNEXURE TO NOTICE
EXPLANATORY STATEMENT UNDER SECTION
173(2) OF THE COMPANIES ACT, 1956
ITEM NOS. 5 and 6
Mr. O. P. Puranmalka was appointed as an
Additional Director of the Company with effect from
16th February, 2010 by the Board of Directors of
the Company pursuant to the provisions contained
in the Articles of Association of the Company and
Section 260 of the Companies Act, 1956 (“the
Act”).
Upon the effectiveness of the Scheme of
Arrangement between Grasim Industries Limited
(“Grasim”) and the Company (“the Scheme”),
whereby the Cement Business of Grasim has been
transferred to the Company pursuant to the Scheme
under Sections 391 to 394 of the Act, the
appointment of Mr. O. P. Puranmalka, as a Director
of the Company, shall be deemed to be treated as
Whole Time Director of the Company with effect
from 16th February, 2010 to 31st March, 2010 under
the provisions of Sections 198, 269, 309, 310 and
314 read with Schedule XIII and other applicable
provisions, if any, of the Act as he was an employee
of the Company during that period. He ceased to
be the Whole Time Director w.e.f. 1st April, 2010
and had become the Additional Director of the
Company with effect from the said date. According
to the provisions of the Articles of Association and
Section 260 of the Act, he holds office up to the
date of this Annual General Meeting. As required
under Section 257 of the Act, notice has been
received from a member along with a deposit of
Rs.500 signifying his intention to propose Mr. O. P.
Puranmalka as a candidate for the office of Director.
A Chartered Accountant by qualification, Mr.
Puranmalka has over three decades of rich and
varied experience in various roles. He is an integral
part of the Group’s Cement Leadership team, taking
responsibility for identifying locations for new plants,
limestone reserves and other opportunities for
establishing growth options through mergers and
acquisitions. Highly respected in the Cement
industry, Mr. Puranmalka is also known for his
entrepreneurial capabilities. His presence on the
Board is a great advantage and the Board feels it
is beneficial for the Company to continue to avail
of his services as a Director of the Company.
Your Directors recommend his continuance as a
Director. Mr. O. P. Puranmalka is interested in the
said Resolution.
ITEM NO. 7
Mr. Kumar Mangalam Birla was appointed as an
Additional Director of the Company with effect from
18th May, 2010 by the Board of Directors of the
Company pursuant to the provisions contained in
the Articles of Association of the Company and
Section 260 of the Companies Act, 1956 (‘the
Act”). According to the provisions of Articles of
Association of the Company and Section 260 of
the Act, he holds office up to the date of this
Annual General Meeting. As required under Section
257 of the Act, notice has been received from a
member along with a deposit of Rs.500 signifying
his intention to propose Mr. Kumar Mangalam Birla
as a candidate for the office of Director.
Mr. Kumar Mangalam Birla is the Chairman of the
Aditya Birla Group, a global conglomerate with
operations spanning 25 countries. An iconic figure,
Mr. Birla holds several key positions on various
regulatory and professional Boards. A Chartered
Accountant, Mr. Birla earned his MBA from the
London Business School, where he is also an
Honorary Fellow. With his vast experience as an
Industrialist, his presence on the Board is a great
advantage and the Board feels it is beneficial for
the Company to continue to avail of his services as
a Director of the Company.
Your Directors recommend his continuance as a
Director. Mr. Kumar Mangalam Birla is interested in
the Resolution.
ITEM NO. 8
Mr. R.C. Bhargava was appointed as an Additional
Director of the Company with effect from 18th May,
2010 by the Board of Directors of the Company
pursuant to the provisions contained in the Articles
of Association of the Company and Section 260 of
the Companies Act, 1956 (“the Act”). According to
the provisions of the Articles of Association and
Section 260 of the Act, he holds office up to the
date of this Annual General Meeting. As required
under Section 257 of the Act, notice has been
received from a member along with a deposit of
Rs.500 signifying his intention to propose Mr. R.C.
Bhargava as a candidate for the office of Director.
Mr. R.C. Bhargava is the Chairman of Maruti Suzuki
India Ltd. He is on the Board of several reputed
companies. With his vast experience in the corporate
field, his presence on the Board is a great advantage
and the Board feels it is beneficial for the Company
to continue to avail of his services as a Director of
the Company.
Your Directors recommend his continuance as a
Director. Mr. R.C. Bhargava is interested in the
Resolution.
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ITEM NO. 9
Mr. G.M. Dave was appointed as an Additional
Director of the Company with effect from 18th May,
2010 by the Board of Directors of the Company
pursuant to the provisions contained in the Articles
of Association of the Company and Section 260 of
the Companies Act, 1956 (“the Act”). According to
the provisions of the Articles of Association of the
Company and Section 260 of the Act, he holds
office up to the date of this Annual General Meeting.
As required under Section 257 of the Act, notice
has been received from a member along with a
deposit of Rs.500 signifying his intention to propose
Mr. G.M. Dave as a candidate for the office of
Director.
Mr. G.M. Dave is a partner of Messrs. Dave &
Girish & Co., Advocates. He is also a director in
several other companies. Considering his vast
experience, his presence on the Board is a great
advantage and the Board feels it is beneficial for
the Company to continue to avail of his services as
a Director of the Company.
Your Directors recommend his continuance as a
Director. Mr. G.M. Dave is interested in the
Resolution.
ITEM NO. 10
Mr. N.J. Jhaveri was appointed as an Additional
Director of the Company with effect from 18th May,
2010 by the Board of Directors of the Company
pursuant to the provisions contained in the Articles
of Association of the Company and Section 260 of
the Companies Act, 1956 (“the Act”). According to
the provisions of the Articles of Association of the
Company and Section 260 of the Act, he holds
office up to the date of this Annual General Meeting.
As required under Section 257 of the Act, notice
has been received from a member along with a
deposit of Rs.500 signifying his intention to propose
Mr. N.J. Jhaveri as a candidate for the office of
Director.
Mr. N.J. Jhaveri is M.Sc. in (Economics) from the
London School of Economics. Mr. Jhaveri joined
ICICI in September 1974 and rose to the position
of Jt. Managing Director and retired as Executive
Chairman of ICICI Securities in August 1995, after
a long and meritorious service and is on the Board
of several reputed companies. With his vast
experience in business and industrial circles, his
presence on the Board is a great advantage and
10
the Board feels it is beneficial for the Company to
continue to avail of his services as a Director of the
Company.
Your Directors recommend his continuance as a
Director. Mr. N.J. Jhaveri is interested in the
Resolution.
ITEM NO. 11
Mr. S.B. Mathur was appointed as an Additional
Director of the Company with effect from 18th May,
2010 by the Board of Directors of the Company
pursuant to the provisions contained in the Articles
of Association of the Company and Section 260 of
the Companies Act, 1956 (“the Act”). According to
the provisions of the Articles of Association of the
Company and Section 260 of the Act, he holds
office up to the date of this Annual General Meeting.
As required under Section 257 of the Act, notice
has been received from a member along with a
deposit of Rs. 500 signifying his intention to propose
Mr. S.B. Mathur as a candidate for the office of
Director.
Mr. S.B. Mathur was Chairman of the Life Insurance
Corporation of India (LIC) from August, 2002 to
October, 2004. Post retirement from LIC, Mr. Mathur
was appointed as Administrator of the Specified
Undertaking of the Unit Trust of India (SUUTI). He
is also on the Board of several reputed companies.
Considering his vast experience, his presence on
the Board is a great advantage and the Board feels
it is beneficial for the Company to continue to avail
of his services as a Director of the Company.
Your Directors recommend his continuance as a
Director. Mr. S.B. Mathur is interested in the
Resolution.
The brief resume in relation to the experience,
functional expertise, memberships on other
companies’ Boards and committees in respect of
appointment of the new directors or re-appointment
of a director, as required under clause 49 of the
Listing Agreement is set out in the Report on
corporate governance forming part of the
Annual Report.
By Order of the Board
Kamal Rathi
Company Secretary
Place: Mumbai
Date: 21st June, 2010
MANAGEMENT DISCUSSION AND ANALYSIS

OVERVIEW

This is the first year of operation of your Company. recording total despatches of around
The Cement business of Grasim Industries Ltd. 200 million tons. The growth was supported by
(Grasim) was demerged and vested into your economic recovery, reduction in excise duty,
Company effective from 1st October, 2009.Therefore, Government ’s initiatives viz. National Rural
the business operations are only for six month during Employment Guarantee and low cost housing.
the current financial year. The demand upturn has been generally broad based,
with all regions recording double digit growth, except
During the year, Cement demand saw a double digit Southern Region which was impacted due to floods
growth of 11%, one of the highest in the decade, and political unrest in Andhra Pradesh during part
of the year.
BUSINESS PERFORMANCE REVIEW
2009-10*
Unit (from 1st October 2009 to
31st March 2010)
Grey Cement
Capacity ** Mn. TPA 25.65
Production Mn. MT 9.85
Sales Volumes $ Mn. MT 10.03
Average Realisation Rs. / MT 3,390
White Cement
Capacity ** TPA 560,000
Production MT 276,416
Sales Volumes $$ MT 273,172
Average Realisation Rs. / MT 8,499

* This being the first financial year of the Company since incorporation, disclosure of previous year figures
is not applicable
** Production quantity is for six months only, whereas the installed capacity given above is for full year
$ Includes captive consumption for RMC
$$ Includes captive consumption for value added products

Your Company completed its ongoing cement
expansion. The 3.1 million TPA grinding capacity at
Kotputli, Rajasthan became operational during
quarter ended March, 2010. Cement production was
9.85 million tons during the six months ended March,
2010. The sales volumes were 10.03 million tons.
The bunching of new capacities created a downward
pressure in cement prices across the regions during
the quarter ended December, 2009. The decline
was more pronounced in the Southern Region.
Unavailability of railway wagons in various pockets
of the country resulted in under utilisation of capacity.
There was partial recovery in cement prices in the
last quarter due to renewed construction activity and
increase in taxes and energy prices.
White Cement division registered an impressive
performance and achieved 99% capacity utilisation.
The Ready mix concrete division is emerging out of
the sluggishness, with recovery in the real estate
segment.
On the cost front, the business gained from the
global softness in energy prices in the first three
months. It has petered off in the last quarter.
Outlook
Cement demand is expected to remain buoyant with
increased domestic consumption, both in the

11
government as well as the private sector. The FINANCIAL REVIEW AND ANALYSIS
government has reiterated its commitment to
infrastructure spending in the budget. The Planning (Rs. in Crores)
Commission in its midterm appraisal of the 11th year 2009-10
plan has envisaged an expenditure of Rs.20.5 trillion (from 4th September
on infrastructure during the plan period. Additionally, 2009* to
the broad based economic growth will continue to 31st March 2010)
drive cement demand from semi urban and rural India
with their rising prosperity levels. With the economy Net Turnover 4,290.6
having recovered from the slow down, revival in Other Operating
organised real estate and corporate capex are also Income and Other Income 50.0
expected to add to the buoyancy in demand. Overall, Profit Before Interest,
cement demand is expected Depreciation and Tax 1,242.2
to grow at a robust 10% + for the next five PBIDT Margin (%) 28.6
years. Interest 87.1
Depreciation 213.1
Profit before Tax Expenses 942.0
The surplus supply scenario, however, is expected to Total Tax Expenses 324.0
create short term pressure. New capacities Net Profit 618.0
commissioned during FY10 are in various stages of
ramp up while additional capacities continue to be During the current period ended 31st March 2010,
set up. This might lead to a surplus scenario after your Company has recorded a net turnover of
peak demand in Q1FY11, which may last for 6 to 8 Rs.4,291 Crores and net profit of Rs.618 Crores.
quarters. It earned a healthy 28.6% PBIDT margin.

CASH FLOW ANALYSIS

On the cost front, higher coal prices are likely to (Rs. in Crores)
exert pressure on margins in FY11. The Company’s
focus on higher volume growth, better logistics 2009-10
support, together with cost efficiency, should help in (from 4th September
partially mitigating the impact. 2009* to
31st March 2010)

Your Company continues to focus on achieving Sources of Cash

greater than industry growth and building sustainable Cash from Operations 1,029
competitive advantage through its reach, service and Non-operating Cash Flow
cost competitiveness. Its distribution network is being (Dividend Income) 10
further expanded throughout India particularly in rural Proceeds from Equity 85
areas to increase the reach. Customer responsiveness Increase in Debts 409
is being further improved with the implementation of Decrease in Working Capital 181
online order booking and tracking system. Decrease in Cash and Cash equivalent 28
1,742
Capex Plan Uses of Cash
Net Increase in Investments 1,265
An overall capital outlay of Rs.2,375 Crores has Capital Expenditure (net) 376
been earmarked. This will be spent over the next 2 Interest 101
years on logistics infrastructure, waste heat recovery
systems, completion of existing projects and 1,742
modernization.
*Date of Incorporation

12
Sources of Cash
Cash from Operations
Cash from operations was Rs.1,029 Crores during
the six months of operation.
Increase in Debts
Term Loans of Rs.450 Crores were raised to fund
capacity expansion. Short term loan of Rs.42 Crores
were repaid.
Proceeds from Equity
17 Crores equity shares of Rs.5 each were issued at
par to Grasim, the Holding Company.
Decrease in Working Capital
Reduction in trade receivables and inventories and
increase in trade payables led to decrease in working
capital.
Uses of Cash
Net Increase in Investments
Your Company invested Rs.1,234 Crores in the debt
scheme of various mutual funds. An investment of
Rs.3.9 Crores was made in equity share capital of
Bhaskarpara Coal Company Ltd., a joint venture of
the Company. Further, a sum of Rs.27 Crores was
advanced to Harish Cement Ltd., a subsidiary of the
Company.
Capital Expenditure (Net)
Your Company have spent Rs.376 Crores towards
the completion of expansion projects and normal
modernisation.
RISKS AND CONCERNS
Upon transfer of Cement business from Grasim
(Holding Company), your Company has adopted its
risk management policy. The risk management policy
inter alia provides for risk identification, assessment,
reporting and mitigation procedure. The risk
management framework actively supports the Board
in its strategic decision making.
An analysis of the Company’s key business risks and
mitigation plans is as follows:
Competitor Risk
The market is highly competitive with no fiscal barriers
and entry of large MNCs into the country with
inorganic growth strategies. Your Company continues
to focus on increasing its market share and taking
marketing initiatives that help create differentiation
and provide optimum service to its customers.
Human Resource Risk
Your Company’s ability to deliver value is shaped by
its ability to attract, train, motivate, empower and
retain the best professional talents. Your Company
continuously benchmarks HR policies and practices
with the best in the industry and carries out the
necessary improvements to attract and retain the
best talent.
Foreign Exchange Risk
Your Company’s policy is to hedge all long-term
foreign exchange risk as well as short-term exposures
within the defined parameters. The long-term foreign
exchange liability is fully hedged and hedges are on
held to maturity basis.
Interest Rate Risk
The Company is exposed to interest rate fluctuations
on its borrowings. It uses a judicious mix of fixed
and floating rate debts within the stipulated
parameters to mitigate the interest rate risk and
whenever required, uses hedging tools to minimise
interest rate risk.
Commodity Price Risk
Your Company is exposed to the risk of price
fluctuation on raw materials, energy sources as well
as finished goods. However, considering the normal
correlation in the prices of raw materials and finished
goods, the risk is reduced. Setting up of captive
power plants helps control the effect of rise in energy
cost, a major cost element for cement manufacturing.
Forward integration in value added products e.g.,
ready mix concrete in cement, wall care putty in
white cement, help reduce the impact of price
fluctuation in finished goods.
Input Availability Risk
Availability of natural resource for current needs and
future growth requirements is a key risk. Indian coal
availability continues to be insufficient to meet the
current and growing demand in the country. To meet
the shortfall, your Company procures coal from
various sources including imports, open market
purchases and pet coke. One coal block has also
been allocated by Government of India to our joint
venture with other corporates. This coal block will,
however, meet only a small part of our requirement
13
on becoming operational. Your Company has
intensified its efforts to increase use of various
alternative fuels. Waste heat recovery systems are
being planned to reduce energy consumption. Your
Company has sufficient limestone reserves at its
existing facilities. Prospecting and acquiring leases
of new limestone mines are being undertaken on a
regular basis to ensure future growth.
INTERNAL CONTROL SYSTEM
The Company has appropriate internal control
systems for business processes, with regards to
efficiency of operations, financial reporting,
compliance with applicable laws and regulations,
etc. Clearly defined roles and responsibilities down
the line for all managerial positions have also been
institutionalised. All operating parameters are
monitored and controlled. Regular internal audits
and checks ensure that responsibilities are executed
effectively. The Audit Committee of the Board of
Directors reviews the adequacy and effectiveness of
internal control systems and suggests improvement
for strengthening them, from time to time.
CONCLUSION
Your Company has decided to amalgamate with
UltraTech Cement Ltd., another subsidiary of Grasim
14
with effect from 1st July, 2010 under a scheme of
amalgamation, subject to receipt of requisite
approvals. The merger will create largest Cement
Company in India creating a platform that will help
in pursuing aggressive growth going forward.
CAUTIONARY STATEMENT
Statement in this “Management Discussion and
Analysis” describing the Company’s objectives,
projections, estimates, expectations or predictions may
be “forward looking statements” within the meaning
of applicable securities laws and regulations. Actual
results could differ materially from those expressed
or implied. Important factors that could make a
difference to the Company’s operations include global
and Indian demand supply conditions, finished goods
prices, feedstock availability and prices, cyclical
demand and pricing in the Company’s principal
markets, changes in Government regulations, tax
regimes, economic developments within India and
the countries within which the Company conducts
businesses and other factors such as litigation and
labour negotiations. The Company assumes no
responsibility to publicly amend, modify or revise any
forward looking statements, on the basis of any
subsequent development, information or events or
otherwise.
R E P O R T O N C O R P O R AT E G OV E R N A N C E

Governance Philosophy governance practices and its adherence in the true

spirit, at all times. Our governance practices are
Corporate governance refers to a set of laws,
self-driven, reflecting the culture of the trusteeship
regulations and good practices that enable an
that is deeply ingrained in our value system and
organization to perform efficiently and ethically
reflected in our strategic growth process.
generate long term wealth and create value for all
its stakeholders. There is, however, no single In terms of Clause 49 of the Listing Agreement of
template to define good governance. Your the stock exchanges, the details of compliance as on
Company is committed to the adoption of best the date of this Report i.e. 18th May, 2010 are as
follows:
I. BOARD OF DIRECTORS
Compliance with Corporate Governance Guidelines
I. BOARD OF DIRECTORS
(A) Composition of Board
Your Company’s Board comprises of 8 Directors, 4 of whom are Independent Directors and 4 are
Non-Executive Directors, with considerable experience in their respective fields.
Name of Director Executive / Date of No. of No. of Outside No. of Outside No. of Board
Non-Executive/ Appointment Equity Shares Directorships Held1 Committee Meetings
Independent held as on Positions Held2
31st March,
2010
Public Private Chairman Member Held Attended

Mr. Kumar Mangalam Birla Non-Executive 18.05.2010 - 11 13 - - - -

Mr. R.C. Bhargava Independent 18.05.2010 - 10 2 4 5 - -
Mr. G.M. Dave Independent 18.05.2010 - 8 5 2 8 - -
Mr. N.J. Jhaveri Independent 18.05.2010 - 12 2 4 4 - -
Mr. S.B. Mathur Independent 18.05.2010 - 12 3 3 3 - -
Mr. Adesh Gupta Non-Executive 04.09.2009 2* 9 1 - 2 9 9
Mr. O.P. Puranmalka ** Non-Executive 16.02.2010 - 2 - - - 1 1
Mr. Ashok Malu Non-Executive 04.09.2009 2* - - - - 9 9

* As a Nominee of Grasim Industries Ltd., the holding company

** Deemed to be a Whole Time Director from 16th February, 2010 to 31st March, 2010. Appointed as an Additional Director (Non-Executive Director)
w.e.f. 1st April, 2010.
Notes :
1. Excluding Directorship in foreign companies and companies under Section 25 of the Companies Act, 1956.
2. Only two Committees of the Board viz. the Audit Committee and the Shareholders’ Grievance/Allotment & Transfer Committee are considered.
(B) Non-Executive Directors’ Compensation (C) Other Provisions as to Board and
and Disclosures Committees
Apart from sitting fees that are paid to the
Your Company’s Board of Directors plays
Non-Executive and Independent Directors
primary role in ensuring good governance
for attending Board/Committee meetings,
and functioning of the Company. Agenda
no other fees/commission were paid during
and Notes on Agenda are circulated to
the period under review. No transactions
the Directors in advance of each meeting
have been entered into by the Company
of the Board of Directors. Where it is not
with the Non-Executive and Independent
practical to attach or send the relevant
Directors.

15
 information as a part of agenda papers,
the same are tabled at the meeting and
the presentations are made to the Board.
The Members of the Board have complete
freedom to express their opinion and the
decisions are taken after detailed discussions.
The Board meets at least once in a quarter
to review the operations of your Company.
Apart from the above, additional Board
Meetings are convened by giving
appropriate notice to address the specific
needs of the Company.
During the period under review, the Board
met 9 times. The details of Board Meetings
held during the period are as under:

Sr. No. Date of Board Meeting City No. of Directors Present*

1. 9th September, 2009 Mumbai 3
th
2. 17 September, 2009 Mumbai 3
3. 24th September, 2009 Mumbai 3
th
4. 26 September, 2009 Mumbai 3
5. 29th September, 2009 Mumbai 3
rd
6. 3 October, 2009 Mumbai 3
7. 16th October, 2009 Mumbai 3
th
8. 15 November, 2009 Mumbai 3
9. 16th February, 2010 Mumbai 3

* Upto 17th May, 2010, the Board constituted of 3 members

(D) Code of Conduct
The Board of Directors plays an important
role in ensuring good governance and has
laid down the Code of Conduct (“the
Code”) applicable to all Board Members
and Senior Management of the Company.
A declaration by Directors affirming the
compliance of the Code by Board Members
and Senior Management Executives is given
at the end of the report.
II. AUDIT COMMITTEE
(A) Composition of Audit Committee
Your Company has an Audit Committee at
the Board level, with the powers and the
role in accordance with the Clause 49 II
(C) and (D) of the Listing Agreement, which
acts as a link between the management,
the statutory and internal auditors and the
Board of Directors and oversees the
financial reporting process.
The Audit Committee was reconstituted on
18th May, 2010 and its present composition
is as follows:
1. Mr. G.M. Dave, Chairman
2. Mr. N.J. Jhaveri, Member
3. Mr. S.B. Mathur, Member
All the present members of the Audit
Committee are Independent Directors.
Prior to 18th May, 2010, the composition
of the Audit Committee was as follows:-
1. Mr. Adesh Gupta
2. Mr. O.P. Puranmalka
3. Mr. Ashok Malu
Mr. Kamal Rathi, Company Secretary, acts
as the Secretary of the Audit Committee.

16
 (B) Meetings of Audit Committee
During the period under review, the Audit
Committee met once on 16 th February,
2010 to deliberate on various matters.
III. SUBSIDIARY COMPANIES
Your Company does not have any material non-
listed Indian Subsidiary Company. The Audit
Committee reviews the financial statements and
in particular, the investments made by the unlisted
subsidiary company.
IV. DISCLOSURES
(A) Basis of related party transactions
Your Company places all the relevant
details before the Audit Committee.
A comprehensive list of related party
transactions as required by the Accounting
Standard (AS) 18 issued by the Institute of
Chartered Accountants of India, forms part
of the Note No. 20 of Schedule 21 to the
Accounts in the Annual Report. These
transactions are not likely to have any
conflict with the interests of the Company
at large.
(B) Disclosure of Accounting Treatment
Your Company has followed all relevant
Accounting Standards while preparing the
Financial Statements.
(C) Risk Management
Your Company has a comprehensive risk
management policy and has laid down
procedures to inform Board members
about the risk assessment and minimization
procedures. The same are periodically
reviewed to ensure that executive
management controls the risks through
properly defined framework.
The risk management issues are discussed
in the Management Discussion & Analysis
Section which forms part of this Annual
Report.
(D) Proceeds from public issues, right issues,
preferential issues, etc.
During the period under review, the
Company has not raised any proceeds
from public issue or preferential issue. The
Company has allotted 16.99 crores equity
shares of Rs. 5 each on rights basis on 29th
September, 2009.
(E) Remuneration of Directors
During the period under review, no sitting
fee has been paid to the Directors for
attending the meetings of the Board and
its Committees.
W.e.f. 18th May, 2010, sitting fee payable
to the Members of the Board for attending
the Board meetings has been fixed @ Rs.
20,000/- per meeting.
Similarly, w.e.f. 18 th May, 2010, the sitting
fees payable to the Members of the Audit
Committee, Shareholders’ Grievance /
Allotment & Transfer Committee and ESOS
Compensation Committee for attending the
meetings of the Committees has been fixed
@ Rs. 10,000/- per meeting of the
Committee.
(F) Management
i) The Management Discussion and
Analysis Report forms part of the
Annual Report and is in accordance
with the requirements laid out in
Clause 49 of the Listing Agreement.
ii) No material transaction has been
entered into by the Company with the
Promoters, Directors or the
Management, their subsidiaries or
relatives etc. that may have a potential
conflict with the interest of the
Company.
(G) Shareholders
i) The Company has provided the details
of the Directors seeking re -
appointment at the end of this Report.
ii) Copies of the Press Release and
Presentations on financial performance
shall be hosted on the website of the
Company, www.adityabirla.com/
samruddhicement.htm.
iii) Shareholders’ Grievance / Allotment
and Transfer Committe
The Board has on 18 th May, 2010
17
 constituted a “Shareholders’
Grievance / Allotment and Transfer
Committee” at the Board level to look
into various issues relating to
shareholders/investors including
transfer and transmission of shares as
well as non-receipt of dividend, Annual
Report, shares after transfers and
delays in transfer of shares. In addition,
the Committee shall also look into
other issues including status of
dematerialization / rematerialization of
shares and debentures as well as
systems and procedures followed to
track investor complaints and suggest
measures for improvement from time
to time.
The Committee comprises of the
following Directors:
1. Mr. G.M. Dave, Chairman
2. Mr. O.P. Puranmalka, Member
3. Mr. Adesh Gupta, Member
iv) ESOS Compensation Committee
(a) Pursuant to the Scheme of
Arrangement between the
Company and Grasim Industries
Limited (“Grasim”) under Sections
391 to 394 of the Companies Act,
1956 for demerger of the Cement
Business of Grasim to the
Company, the eligible employees
of Grasim holding stock options
in Grasim shall be entitled to one
stock option of Rs. 5/- each of
the Company for every stock
option they hold in Grasim in
terms of the Compensatory Stock
Option Scheme of the Company,
ESOS – 2010.
(b) ESOS Compensation Committee
has been constituted on 18th May,
2010 and the same comprises of
the following Directors, viz. Mr.
Kumar Mangalam Birla, Mr. G.M.
Dave and Mr. N.J. Jhaveri. The
Committee has been formed to
implement, administer and
supervise ESOS – 2010.
18
v) Compliances by the Company
No strictures/ penalties have been
imposed on the Company by the Stock
Exchanges or the Securities and
Exchange Board of India (SEBI) or any
statutory authority on any matters
related to capital markets, since the
incorporation of the Company on 4th
September, 2009.
V. REPORT ON CORPORATE GOVERNANCE
This Corporate Governance Report forms part
of the Annual Report. The Company is
compliant with the provisions of Clause 49 of
the Listing Agreement of the Stock Exchanges
in India.
VI. COMPLIANCE
i) Certificate from the Statutory Auditors
confirming compliance with the conditions
of Corporate Governance as stipulated in
Clause 49 of the Listing Agreement of the
Stock Exchanges in India is annexed to the
Directors’ Report and forms part of the
Annual Report.
ii) Status of compliance of Non mandatory
requirement
a) The Company maintains a separate
office for the Non-Executive Chairman.
All necessary infrastructure and
assistance are made available to enable
him to discharge his responsibilities.
b) The Company does not have a
Remuneration Committee. The
remuneration of the Directors is decided
and approved by the Board of
Directors.
VII. GENERAL BODY MEETINGS
During the period ended 31st March, 2010,
three Extraordinary General Meetings of the
shareholders of the Company were held on
19th September, 2009, 25th September, 2009
and 29th March, 2010 respectively.
VIII.MEANS OF COMMUNICATION
Any website, where displayed :
www.adityabirla.com/samruddhicement.htm
 CODE OF CONDUCT
DECLARATION
As provided under Clause 49 of the Listing Agreement with the Stock Exchanges, we confirm that the Board
Members and Senior Management of the Company have confirmed compliance with the Code of Conduct
for the period ended 31st March, 2010.
For Samruddhi Cement Limited
O.P. Puranmalka Adesh Gupta
Director Director
Place : Mumbai
Date : 18th May, 2010

CEO/ CFO CERTIFICATION

Mr. O.P. Puranmalka and Mr. Adesh Gupta, Directors of the Company have certified to the Board that:
(a) They have reviewed financial statements and the cash flow statement for the period ended
31st March, 2010 and that to the best of their knowledge and belief:
i) these statements do not contain any materially untrue statement or omit any material fact or
contain statements that might be misleading; and
ii) these statements together present a true and fair view of the Company’s affairs and are in compliance
with existing accounting standards, applicable laws and regulations.
(b) There are, to the best of their knowledge and belief, no transactions entered into by the Company
during the period which are fraudulent, illegal or violative of the Company’s code of conduct.
(c) They accept responsibility for establishing and maintaining internal controls for financial reporting
and that they have evaluated the effectiveness of the internal control systems of the Company
pertaining to financial reporting and they have disclosed to the auditors and the Audit Committee,
deficiencies in the design or operation of internal controls, if any, of which they are aware and the
steps they have taken or propose to take to rectify these deficiencies.
(d) They have indicated to the auditors and the Audit Committee:
i) significant changes in internal control over financial reporting for the period under review;
ii) significant changes in accounting policies for the period under review and that the same have
been disclosed in the notes to the financial statements; and
iii) instances of significant fraud of which they have become aware and the involvement therein, if
any, of the management or an employee having a significant role in the Company’s internal
control system over financial reporting.

For Samruddhi Cement Limited

O.P. Puranmalka Adesh Gupta
Director Director
Place : Mumbai
Date : 18th May, 2010

19
20
Details of the Directors seeking appointment/ re-appointment in the ensuing Annual General Meeting
Name of Director Mr. Kumar
Mangalam Birla
Date of Birth 14.06.1967
Date of Appointment 18.05.2010
Expertise in specific Industrialist
functional areas
Qualification A.C.A., M.B.A.
No. of Equity Shares held as on – –
31st March 2010
List of outside Company 1. Aditya Birla Minacs
Directorships held Worldwide Ltd.
2. Aditya Birla Nuvo Ltd
3. Birla Sun Life
Asset Management
Co. Ltd.
4. Birla Sun Life
Insurance Co. Ltd.
5. Century Textiles &
Industries Ltd.
6. Essel Mining &
Industries Ltd.
7. Grasim Industries
Ltd.
8. Hindalco Industries Ltd.
9. Idea Cellular Ltd.
10. Pilani Investment &
Industries
Corporation Ltd.
11. UltraTech
Cement Ltd.
Chairman/Member of the – –
Committees of the Board of
Directors of the Company
* as a nominee of Grasim Industries Limited
Mr. R.C. Bhargava Mr. G.M. Dave Mr. Adesh Gupta Mr. N.J. Jhaveri Mr. S.B. Mathur Mr. O.P.
Puranmalka
30.07.1934 12.07.1938 11.09.1956 09.08.1935 11.10.1944 02.01.1952
18.05.2010 18.05.2010 04.09.2009 18.05.2010 18.05.2010 16.02.2010
General Management Advocate Company Executive Management Consultant Management Consultant Company Executive
M.Sc. (Maths.) M.Com. LL.B.,C.A.I.I.B B. Com., FCS, FCA. M.A., M.Sc. in Economics B.Com. F.C.A. I.C.W.A. FCA
Development Economics - London School of (Part I & II), London
and M.A. Economics
– 2* - - –
1. Birla Sun Life 1. Aditya Birla Retail Ltd. 1. Aditya Birla Telecom Ltd. 1. Afcons Infrastructure Ltd. 1. DCM Sriram 1. Dakshin Cements Ltd.
Asset Mgt. Co. Ltd. 2. Camphor & Allied 2. Birla Consultants Ltd. 2. Edelweiss Capital Ltd. Industries Ltd. 2. UltraTech Cement Ltd.
2. Dabur India Ltd. Products Ltd. 3. Birla Industrial 3. Edelweiss Securities Ltd. 2. Havells India Ltd.
3. Grasim Industries Ltd. 3. Cinemax India Ltd. Finance (India) Ltd. 4. Gujarat Venture 3. HDIL
4. Idea Cellular Ltd. 4. Grasim Bhiwani 4. Birla Industrial Finance Ltd. 4. Hindustan Oil
5. IL&FS Ltd. Textiles Ltd. Investments (India) Ltd. 5. Hindalco Industries Ltd. Exploration
6. Maruti Suzuki 5. PSI Data Systems Ltd. 5. Birla Insurance 6. Pidilite Industries Ltd. Company Ltd.
India Ltd. 6. PCS Technology Ltd. Advisory and Broking 7. Siemens Ltd. 5. IL&FS Ltd.
7. Optimus Global 7. UltraTech Cement Ltd. Services Ltd. 8. Siemens Healthcare 6. ITC Ltd.
Services Ltd. 8. Vinati Organics Ltd. 6. Grasim Bhiwani Diagnostics Ltd. 7. National Collateral
8. Polaris Software Textiles Ltd. 9. SKF India Ltd. Management
Lab. Ltd. 7. Grasim Industries Ltd. 10. Usha Martin Ltd. Services Ltd.
9. Thomson Press Ltd. 8. Samruddhi Swastik 11. Voltas Ltd. 8. National Stock
10. UltraTech Cement Ltd. Trading And 12. UltraTech Cement Ltd. Exchange of India
Investments Ltd. Ltd.
9. Sun God Trading 9. Orbis Financial
And Investments Ltd. CorporationLtd.
10. Universal Sompo
General Insurance
Company Ltd.
11. Axis Bank Ltd.
12. UltraTech Cement Ltd.
1. Audit Committee Shareholders‘ Grievance/ Audit Committee Audit Committee Shareholders’
- Chairman Allotment and - Member - Member Grievance/Allotment
2. Shareholders’ Transfer Committee and Transfer
Grievance/Allotment - Member Committee
and Transfer - Member
Committee
- Chairman
 Name of Director Mr. Kumar Mr. R.C. Bhargava Mr. G.M. Dave Mr. Adesh Gupta Mr. N.J. Jhaveri Mr. S.B. Mathur Mr. O.P.
Mangalam Birla Puranmalka

Chairman /Member of the

Committees of Directors of other
Companies in which he is a
Director
a) Audit Committee - 1. Dabur India Ltd. 1. Aditya Birla Retail Ltd. 1. Grasim Bhiwani 1. Afcons Infrastructure 1. DCM Sriram -
- Member - Chairman Textiles Ltd.-Member Ltd. - Chairman Industries Ltd.
2. Grasim Industries 2. Camphor & Allied 2. Samruddhi Swastik 2. Edelweiss Capital - Member
Ltd. - Member Prouducts Ltd Trading And Ltd. - Chairman 2. Havells India Ltd.
3. IL&FS Ltd.-Chairman - Member Investments Ltd. 3. Hindalco Industries - Chairman
4. Optimus Global 3. Cinemax India Ltd. - Member Ltd. - Member 3. Hindustan Oil
Services Ltd - Member 4. Pidilite Industries Exploration
- Chairman 4. Grasim Bhiwani Ltd. - Member Company Ltd.
5. Polaris Software Textiles Ltd. 5. Siemens Healthcare - Member
Lab. Ltd. - Member. - Member Diagnostics Ltd. 4. ITC Ltd. - Chairman
6. Thomson Press Ltd. 5. PCS Technology Ltd. - Member 5. Orbis Financial
- Chairman - Member 6. SKF India Ltd. Corporation Ltd.
7. UltraTech Cement 6. Vinati Organics Ltd. - Member - Member
Ltd. - Chairman - Chairman 7. Usha Martin Ltd. 6. Universal Sompo
7. UltraTech Cement Chairman General Insurance
Ltd- Member 8. Voltas Ltd. Co. Ltd. - Chairman
- Chairman

b) Shareholders/Investors - 1. Maruti Suzuki India 1. Camphor & Allied . - - - -

Grievance Committee/ Ltd. - Member Products Ltd.-Member
Share Transfer Committee 2. UltraTech Cement 2. UltraTech Cement
Ltd. - Member Ltd. - Member
3. Vinati Organics Ltd.
- Member

Note: Pursuant to Clause 49 of the Listing Agreement, only two committees viz. Audit Committee and Shareholders’ Grievance Committee have been considered

21
SUSTAINABILITY R E P O R T / INCLUSIVE GROWTH
Corporate Social Responsibility Policy
For us in the Aditya Birla Group, reaching out to
underserved communities is part of our DNA. We
believe in the trusteeship concept. This entails
transcending business interests and grappling with
the “quality of life” challenges that underserved
communities face, and working towards making a
meaningful difference to them.
Our vision is - “to actively contribute to the social
and economic development of the communities in
which we operate. In so doing build a better,
sustainable way of life for the weaker sections of
society and raise the country’s human development
index” (Mrs. Rajashree Birla, Chairperson, Aditya
Birla Centre for Community Initiatives and Rural
Development).
Implementation process: Identification of
projects
All projects are identified in a participatory manner,
in consultation with the community, literally sitting
with them and gauging their basic needs. We
recourse to the participatory rural appraisal mapping
process. Subsequently, based on a consensus and
in discussion with the village panchayats, and other
influentials, projects are prioritized.
Arising from this, the focus areas that have emerged
are Education, Health care, Sustainable livelihood,
Infrastructure development, and espousing social
causes. All of our community projects are carried
out under the aegis of The Aditya Birla Centre for
Community Initiatives and Rural Development.
In Education, our endeavour is to spark the desire
for learning and knowledge at every stage through
• Formal schools • Balwadis for elementary
education • Quality primary education • Aditya Bal
Vidya Mandirs • Girl child education • Adult
education programmes.
In Health care, our goal is to render quality health
care facilities to people living in the villages and
elsewhere through our Hospitals.• Primary health
care centres • Mother and Child care projects •
Immunization programmes with a thrust on polio
eradication • Health care for the visually impaired,
and physically challenged • Preventive health through
awareness programmes.
In Sustainable Livelihood, our programmes aim
at providing livelihood in a locally appropriate and
environmentally sustainable manner through •
Formation of Self Help Groups for women
empowerment • Vocational training through Aditya
22
Birla Rural Technology Parks • Agriculture
development and better farmer focus • Watershed
development • Partnership with Industrial Training
Institutes.
In Infrastructure Development, we endeavour to
set up essential services that form the foundation of
sustainable development through • Basic
infrastructure facilities • Housing facilities • Safe
drinking water • Sanitation & hygiene • Renewable
sources of energy.
To bring about Social Change, we advocate and
support • Dowryless marriage
• Widow remarriage • Awareness programmes on
anti social issues • De-addiction campaigns and
programmes • Espousing basic moral values.
Activities, setting measurable targets with time
frames and performance management.
Prior to the commencement of projects, we carry
out a baseline study of the villages. The study
encompasses various parameters such as – health
indicators, literacy levels, sustainable livelihood
processes, population data - below the poverty line
and above the poverty line, state of infrastructure,
among others. From the data generated, a 1-year
plan and a 5-year rolling plan are developed for
the holistic and integrated development of the
marginalized. These plans are presented at the
Annual Planning and Budgeting meet. All projects
are assessed under the agreed strategy, and are
monitored every quarter, measured against targets
and budgets. Wherever necessary, midcourse
corrections are effected.
Organizational mechanism and responsibilities
The Aditya Birla Centre for Community Initiatives
and Rural Development provides the vision under
the leadership of its Chairperson, Mrs. Rajashree
Birla. This vision underlines all CSR activities. Every
Manufacturing Unit has a CSR Cell. Every Company
has a CSR Head, who reports to the Group Executive
President (Communications & CSR) at the Centre.
At the Company, the Business Director takes on the
role of the mentor, while the onus for the successful
and time bound implementation of the projects is
on the various Unit Presidents and CSR teams. To
measure the impact of the work done, a social
satisfaction survey / audit is carried out by an external
agency.
Partnerships
Collaborative partnerships are formed with the
Government, the District Authorities, the village
panchayats, NGOs and other like-minded
stakeholders. This helps widen the Company’s reach
and leverage upon the collective expertise, wisdom
and experience that these partnerships bring to the
table.
In collaboration with FICCI, we have set up Aditya
Birla CSR Centre for Excellence to make CSR an
integral part of corporate culture.
The Company engages with well established and
recognized programmes and national platforms such
as the CII, FICCI, ASSOCHAM to name a few,
given their commitment to inclusive growth.
Budgets
A specific budget is allocated for CSR activities.
This budget is project driven.
Information dissemination
The Company’s engagement in this domain is
disseminated on its website, Annual Reports, its house
journals and through the media.
Management Commitment
Our Board of Directors, our Management and all
of our employees subscribe to the philosophy of
compassionate care. We believe and act on an ethos
of generosity and compassion, characterized by a
willingness to build a society that works for everyone.
This is the cornerstone of our CSR policy.
Our Corporate Social Responsibility policy conforms
to the Corporate Social Responsibility Voluntary
Guidelines spelt out by the Ministry of Corporate
Affairs, Government of India in collaboration with
FICCI (2009).
Towards inclusive growth
A snapshot of your Company’s work
Your Company’s CSR activities extend to 310
villages, in proximity to its plants, across the country.
Health Care
At the rural medical camps organized for general
health check-ups 15,388 villagers were examined.
Over 91,400 patients were treated at our hospitals.
Those afflicted with serious ailments were taken to
the Company’s hospitals for treatment.
Intra Ocular lens surgery benefited 3,662 cataract
patients at Khor (M.P.), Shambhupura (Rajasthan)
and Kharia Khangar (Rajasthan).
More than 35,050 truck drivers, their helpers and
migrant workers were sensitized to the dangers of
HIV/AIDS.
The DOTS centre at Kotputli continues to treat
patients with TB.
596 patients were treated for dental problems.
Over 3,630 villagers benefited from specific disease
camps organized for cardiac checkup, skin diseases,
arthritis and other specific health problems.
A special programme for drug de-addiction
organized at Bhatinda was attended by 550 people.
Mother and Child Care
We administered 1,19,457 polio doses to children
at Birla White, Kharia Khangar and Vikram Cement,
Khor.
Nearly 10,000 children were immunized against
diphtheria, tetanus, measles and hepatitis-B across
the locations mainly in Khor, Shambhupura, Kharia
Khangar and Kotputli.
More than 1,886 couples have opted for planned
families and responsible parenting at Rawan, Kotputli,
Khor, Kharia Khangar, Sawa, Malkhed and
Reddipalayam.
Over 1,500 mothers were provided pre and post
natal care at Reddipalayam, Khor, Shambhupura,
Kotputli, Rawan and Kharia Khangar.
Education
Over 507 students were enlisted this year in our
Balwadis at Khor, Nawalgarh, Shambhupura and
Reddipalayam.
To encourage the spirit of excellence, 361 children
from the adopted rural schools were awarded
scholarships at Rawan and Malkhed.
This year we were able to persuade the parents of
290 girls who had dropped out from their schools
in the villages to get back to their studies at Malkhed
and Kharia Khangar.
To focus on the girl child we support the Kasturba
Gandhi Balika Vidhyalayas (KGBV) - residential
schools for girls at Kharia Khangar.
More than 15 education centres across Rawan and
Kharia Khangar provide bridge education to girls
who had dropped out from the education stream,
mid-way. So far, 290 girls have been successfully
placed in KGBVs and other Government schools.
Over 80 people have joined our adult literacy classes
at Malkhed.
More than 8,100 students at various Government
schools have been provided educational aids such
as school bags, notebooks, stationery and utensils
for mid-day meal support at Kharia Khangar,
Neemuch, Shambhupura, Rawan and Malkhed.
23
At the Kagina Industrial Training Centre, which we
are running at Malkhed, 171 students have been
trained as fitters, welders, electronic, electric and
mechanical repairmen. They have been successfully
placed. This centre is recognized by the Department
of Employment & Training of the Government of
Karnataka.
Free coaching classes for underprivileged students
were conducted at Rawan.
Safe drinking water and sanitation
Water tanks have been set up at Neemuch,
Chittorgarh, Kharia Khangar and Reddipalayam.
Under the Nirmal Gram Yojana, your Company
facilitated the construction of individual toilets in
villages around Khor and Shambhupura plants.
At schools around Shambhupura, 8 roof rain water
harvesting structures were constructed.
Sustainable Livelihood
Towards fostering renewable energy, 50 bio-gas units
have been promoted in villages around our Vikram
Cement Plant near Khor.
Immunized 9,061 animals in animal husbandry and
other veterinary camps at Vikram Cement, Khor,
Grasim Rawan, Birla White Kharia Khangar and
Aditya Cement Shambhupura.
Farm based income generation activities have
benefitted 70 farmers at Kharia Khangar, Khor and
Shambhupura.
Self Help Groups and Income Generation
Our 120 Self Help Groups empower 1,200 rural
households financially and socially at Malkhed,
Kharia Khangar and Reddipalayam. Most of these
groups have been linked with the economic schemes
of NABARD and the District Industries Centre.
Vocational training programmes were conducted for
637 youngsters. Among these were two-wheeler
repairing, driving, domestic electric fitting, motor
rewinding, mobile repairing, training on refrigeration,
computer training and beauty parlour courses in
Khor, Shambhupura, Kharia Khangar, Reddipalayam,
Malkhed and Rawan.
At the various tailoring centres across our Units,
linkages with entrepreneurs have been developed to
close the marketing loop. Over 36 women have
been the beneficiaries.
24
Infrastructure Development
To augment the ground water storage by minimizing
the excess runoff, two water harvesting structures in
the form of Anicuts were constructed at Kharia
Khangar.
A community hall has been provided for Segwa
village in Neemuch to facilitate informative and
cultural exchanges among communities.
School buildings, boundary walls, anganwadi centres,
panchayat offices, Primary Health Centre and cattle
sheds have been constructed/renovated at the
Company’s Neemuch, Chittorgarh, Kharia Khangar,
Rawan and Kotputli plants.
Your Company has repaired the village approach
roads at Rawan and Shambhupura.
Vikram Cement has set up a 20-bed maternity ward
at the District Hospital.
Public sanitation facilities have been provided at
Neemuch and other units.
At the Navjeevan Gaushala at Kharia Khangar,
3,500 cattle were vaccinated. The vermin compost
pits produce manure which is supplied to farmers.
The Gaushala also serves as a demonstration site
for better bred cattle and farming practices.
Social Welfare
Under the mass marriage programme, 104 couples
have wed.
We helped more than 120 new beneficiaries at
Reddipalayam, Malkhed and Rawan access
Government pension funds for old age widows and
the physically handicapped. Other social security
programmes were facilitated by us.
The drug de-addiction campaign organized at
Bhatinda, was attended by 8,000 people so far, of
which 250 addicts have been cured and successfully
rehabilitated.
At the week long Yoga and Sanskar classes organized
for school children at Malkhed 1,177 children
participated.
Our Board of Directors, our Management and all
of our employees subscribe to the philosophy of
compassionate care and to the upliftment of our
rural societies.
ENVIRONMENT R E P O R T
The challenges that the world faces on environment
conservation, are indeed alarming. Just to highlight
a few – climate change, the severity of droughts
and floods, their impact on rain fed agriculture, the
emission of greenhouse gases and our ability to
pursue sustainable development. We in India are
no exception to these issues. Environment
conservation and sustainable development are
continuously on your Company’s radar. Hence these
are integrated into its business strategies as well as
its efforts towards fostering inclusive growth through
its rural development and community initiatives.
All of your Company’s plants are ISO14001 EMS,
OHSAS 14001 and SA8000 certified.
A rigorous in-depth environment audit of each of
our plants is conducted by external specialists in this
domain. Among the auditors enlisted by us are
KPMG Peat Maverick, Det Norkse Veritas and
Environmental Systems Auditors. Alongside these
experts, the State Pollution Control Board’s certified
auditors also carry out these audits. They reconfirm
our commitment to environment conservation as a
major operating principle.
Your Company has developed and implemented
measures to monitor and reduce green house gas
(GHG) emissions from its manufacturing operations.
The GHG emission details and mitigation plan are
being audited by KPMG as Independent Third Party
Auditors. This is work-in-progress. We expect to
publish their findings in the 3rd quarter of FY 2010-
11. Whatever course correction or innovative
suggestions emanate from the report, will be
implemented. Their findings will be published by
mid 2010-11.
Your Company is greatly advantaged by its linkages
with its parent Company, Grasim Industries Limited,
which is a voluntary member of the Cement
Sustainability Initiative (CSI). The CSI sets common
measures and is a knowledge networking forum on
environmental impact issues. Your Company’s
sustainable development program is in sync with the
parameters of the CSI.
Your Company is a voluntary member of the Cement
Sustainability Initiative (CSI). The CSI sets common
measures and is a knowledge networking forum on
environmental impact issues. Your Company’s
sustainable development program is in sync with the
parameters of the CSI.
Your Company’s Cement plants continue to validate
its energy efficiency, kiln reliability and productivity
based on data from Global Benchmarking Surveys,
conducted annually by Whitehopleman – an
independent UK based consulting firm.
Your Company’s thrust on use of alternate fuels is
gaining momentum. We have been continuing our
efforts to reduce consumption of fossil fuels by
substituting these with wastes from other industries.
It is difficult for the waste generating industries to
safely dispose these wastes generated and the only
other choice is through incineration.
We have saved using coal by recoursing to alternate
fuels such as processed municipal solid waste, agro
waste, tyre chips and used polythene and plastics.
In 2009-10, we substituted the use of natural
resources with 18,000 tons of waste materials as
fuel, equivalent to 9,000 tons of coal burning. This
has helped our environmental conservation efforts
significantly. We are building competency and
installing machinery at our plants to handle waste
fuels in the most eco-friendly manner.
Rain water harvesting continues to be a priority area.
Water bodies in the catchment areas for rainwater
storage and ground water recharging have been set
up. At the same time in shopping complexes, hospital
roofs, school and mine offices at our plant locations,
rain water harvesting system has been instituted.
This effectively recharges rain water in the bore wells
and helps maintain ground water levels.
The greenbelt at our plants is simply awesome and
is surrounded by trees all around. At some points,
you cannot even see the skyline. Only the leaves
and the flowers and hear the cacophony of the
birds. When you walk through this wooded
ambience, you can never imagine that there would
be a plant in the midst of nature. Our Board, our
Management and all of our colleagues are
committed to living in harmony with nature.
25
D I R E C TO R S ’ R E P O R T

Dear Shareholders, year under review, the figures of the previous year
th
Your Company was incorporated on 4 September, are not available.
2009. As such, your Directors present the First Annual (Rs. Crores)
Report of your Company together with the Audited Consolidated Stand-alone
Accounts for the period ended 31st March, 2010. 2009-10 2009-10
SCHEME OF ARRANGEMENT Gross Turnover 4,745.70 4,745.70
As you are aware, the Cement Business of Grasim Gross Profit (PBDT) 1,155.07 1155.11
Industries Limited (“Grasim”), the holding company, Less: Depreciation 213.12 213.12
has been demerged into your Company w.e.f. 1st Profit before Tax 941.95 941.99
October, 2009, being the Appointed Date fixed for Tax Expenses 324.03 324.03
this purpose, pursuant to a Scheme of Arrangement
under Sections 391 to 394 of the Companies Act, Surplus available for
Appropriation 617.92 617.96
1956 (“the Scheme of Arrangement”). Pursuant to
the Scheme of Arrangement and in consideration Appropriation:
thereof, your Company shall issue 1 (one) equity General Reserve 200.00 200.00
share of the face value of Rs. 5/- credited as fully Debenture Redemption
paid up, to the shareholders of Grasim for every
Reserve 12.50 12.50
equity share they hold in Grasim as on 28th May,
2010, being the Record Date fixed for this purpose. Proposed Dividend 45.79 45.79
The Scheme of Arrangement has become effective Corporate Tax on Dividend 7.61 7.61
on 18th May, 2010, having received the regulatory Balance carried to
approvals, interalia, the sanction of the Hon’ble High Balance Sheet 352.02 352.06
Court of Madhya Pradesh, Indore and Hon’ble High
Court of Gujarat, Ahmedabad. 617.92 617.96
MERGER WITH ULTRATECH CEMENT LIMITED OPERATIONS
As a separate matter, the Board of Directors of your A review of operations of your Company for the
Company and that of UltraTech Cement Limited period ended 31st March, 2010 is provided in the
(UltraTech), another subsidiary of Grasim, have Management Discussion and Analysis Section, which
decided to amalgamate your Company with forms part of this Annual Report.
UltraTech under a Scheme of Amalgamation under DIVIDEND
Sections 391 to 394 of the Companies Act, 1956 Your Directors are pleased to recommend a maiden
(“Scheme of Amalgamation”), subject to necessary Dividend @ Rs. 1.75 per fully paid-up equity share
approvals, w.e.f. 1st July, 2010, being the Appointed of Rs. 5 each for the period ended on 31st March,
Date fixed for the purpose. In terms of the Scheme, 2010. The total outgo of the dividend to be paid to
the shareholders of the Company will receive 4 (four) the shareholders will be Rs. 53.40 crores (inclusive
equity shares of UltraTech of the face value of Rs.10 of Corporate Tax on Dividend).
each, credited as fully paid up, for every 7 (seven) EMPLOYEE STOCK OPTION SCHEME (ESOS)
equity shares of the Company of the face value of Pursuant to the Scheme of Arrangement between
Rs.5 each held on the record date to be fixed for Grasim Industries Limited (“Grasim”), the Company
the purpose. The Scheme of Amalgamation is and their respective shareholders and creditors under
pending for sanction before the Hon’ble High Courts the provisions of Sections 391 to 394 of the Companies
of Bombay and Gujarat. Act, 1956 (“Scheme of Arrangement”), the Cement
Business of Grasim was transferred to the Company.
The amalgamation of your Company with UltraTech Grasim had constituted an employees’ stock option
will result in UltraTech emerging as the largest Cement scheme in 2006 (“ESOS-2006”) under which Grasim
Company in India and the 10th largest in the world. had granted options to its eligible employees. In respect
FINANCIAL PERFORMANCE of the stock options granted by Grasim under ESOS-
2006, the Company is required to offer one (1)
The results of your Company on consolidated basis employee stock option for every employee stock option
for the period ended 31st March, 2010 are as under. held by an employee in Grasim, as on the date as
As the Company has been incorporated during the may be determined by Grasim for this purpose, under

26
the Compensatory Stock Option Scheme created by
the Company (“ESOS-2010”), pursuant to the Scheme
of Arrangement.
The details of Employee Stock Options granted pursuant
to ESOS - 2010, as also the disclosures in compliance
with Clause 12 of the Securities and Exchange Board
of India (Employee Stock Option Scheme and Employee
Stock Purchase Scheme) Guidelines, 1999, are set
out in the Annexure to this Report.
DEBENTURES AND TERM LOANS
Your Company has raised long term loans
aggregating Rs.450 Crores to meet the requirements
of capital expenditure and other approved purposes.
AWARDS & ACCOLADES
Your Company has earned several honours. Some
of the significant accolades received include:
¢ National Energy Conservation Award 2009 in
Cement Sector : Birla White Division
¢ CAPEXIL Export Award – “Certificate of Merit”
for Export Recognition : Birla White Division
¢ IMC - Ramakrishna Bajaj National Quality
Award for Outstanding Achievement Trophy
2009 : Birla White Division
RESEARCH AND DEVELOPMENT
In an increasingly competitive business environment,
your Company recognizes the importance of
Research & Development (R&D) to maintain its
leadership position. To further its competitive edge
through product innovations and quality upgradation
as part of its customer-centric endeavors, your
Company pursues a focused R&D strategy. Its R&D
efforts also aim at ensuring cost optimization and
environment protection.
Your Company ’s R&D efforts are focused on
development of new products and processes for
creating greater value for its customers. While
meeting customer needs is at the centre of all R&D
activities, your Company is committed to sustainable
development and looks for new ways to preserve
the environment and manage resources responsibly.
Towards this, your Company aims to maximise use
of industrial waste, alternative sources of fuel and
chemicals and mineral evaluation of captive
limestone reserves.
HUMAN RESOURCES
Your Company continuously strives to foster a culture
of high performance. Your Management has infused
a lot of rigor and intensity in its people development
processes and in honing skill sets. Its HR processes
are absolutely aligned to organizational goals.
The implementation of People Soft HRMS (Human
Resource Management System), the variable pay plan
and job bands have been institutionalized.
Ongoing learning, refreshing HR systems in line with
global benchmarks, aligning rewards and recognition
with performance, have enabled your Company
sustain its reputation of a meritocratic organization.
The Group's Corporate Human Resources function
has played and continues to play an integral role in
your Company's Talent Management Processes.
CORPORATE GOVERNANCE
As required by Clause 49 of the Listing Agreement of
Stock Exchanges, the report on Corporate Governance
forms part of this Annual Report. The Company’s
Statutory Auditors’ Certificate dated 18th May, 2010
in terms of Clause 49 of the Listing Agreement is
annexed to and forms part of the Directors’ Report.
DIRECTORS’ RESPONSIBILITY STATEMENT
As stipulated in Section 217(2AA) of the Companies
Act, 1956, your Directors subscribe to the “Directors’
Responsibility Statement” and confirm that:
i) in the preparation of the accounts for the period
ended 31 st March, 2010, the applicable
accounting standards have been followed along
with proper explanation relating to material
departures;
ii) the Directors have selected such accounting
policies and applied them consistently and made
judgments and estimates that are reasonable
and prudent so as to give a true and fair view
of the state of affairs of the Company at the
end of the financial year and of the profit or
loss of the Company for that period;
iii) the Directors have taken proper and sufficient
care of the maintenance of adequate accounting
records in accordance with the provisions of
this Act for safeguarding the assets of the
Company and for preventing and detecting fraud
and other irregularities; and
iv) the Directors have prepared the accounts for
the period ended 31st March, 2010 on a going
concern basis.
CONSOLIDATED FINANCIAL STATEMENTS
Upon effectiveness of the Scheme of Arrangement,
Harish Cement Limited has become a wholly owned
subsidiary of your Company and Bhaskarpara Coal
Company Limited has become a joint venture of
your Company, with effect from 1st October, 2009.
The Consolidated Financial Statements have been
prepared by your Company in accordance with the
applicable Accounting Standards (AS-21 and AS-
27) issued by the Institute of Chartered Accountants
of India. Together with the Auditors’ Report, these
form part of the Annual Report.
27
PARTICULARS AS PER SECTION 217 OF THE
COMPANIES ACT, 1956
Information on Conservation of Energy, Technology
Absorption and Foreign Exchange Earnings and Outgo,
stipulated under Section 217(1)(e) of the Companies
Act, 1956 is set out in a separate statement, attached
to this report and forms part of it.
In accordance with the provisions of Section 217(2A)
ot the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975,
the names and other particulars of employees are
to be set out in the Directors’ report, as an
addendum thereto. However, in tandem with the
provisions of Section 219(1)(b)(iv) of the Companies
Act, 1956, the Report and Accounts as set out
therein, are being sent to all members of the
Company excluding the aforesaid information about
the employees. Any member, who is interested in
obtaining these particulars about employees, may
write to the Company Secretary at the Registered
Office of the Company.
DIRECTORS
Your Company had initially three directors, viz., Mr.
Adesh Gupta, Mr. Sanjeev Bafna and Mr. Ashok
Malu. Subsequent to the resignation of Mr. Sanjeev
Bafna, Mr. Saurabh Misra was appointed as an
additional director of your Company with effect from
17th September, 2009. Upon the resignation of Mr.
Saurabh Misra, Mr. O.P. Puranmalka was appointed
as an additional director of your Company with
effect from 16th February, 2010.
The Directors place on record their appreciation of
the services rendered by Mr. Sanjeev Bafna and Mr.
Saurabh Misra during their tenure as members of
the Board.
Upon effectiveness of the Scheme of Arrangement
between Grasim and the Company, whereby the
Cement Business of Grasim has been transferred to
the Company pursuant to the Scheme, the
appointment of Mr. O.P. Puranmalka as an Additional
Director of the Company was deemed to be treated
as Whole Time Director of the Company with effect
from the date of his appointment, viz. 16th February,
2010 to 31st March, 2010 under the provisions of
Section 269 and 314 read with Schedule XIII and
other applicable provisions, if any, of the Companies
Act, 1956.
Mr. Kumar Mangalam Birla, Mr. R.C. Bhargava,
Mr. G.M. Dave, Mr. N.J. Jhaveri and Mr. S.B. Mathur,
who were appointed as the Additional Directors at
the Board Meeting held on 18th May, 2010, hold
office till the conclusion of the ensuing Annual
General Meeting. The Company has received the
notices in writing from a member proposing their
28
candidature for the office of Directors, liable to retire
by rotation.
Mr. Adesh Gupta retires from office by rotation at
the ensuing Annual General Meeting and being
eligible, offers himself for re-appointment.
AUDITORS
The observations made in the Auditors’ Report are
self explanatory and therefore do not call for any
further comments under Section 217(3) of the
Companies Act, 1956.
The Board, on the recommendation of the Audit
Committee, has proposed that M/s. G.P. Kapadia &
Co., Chartered Accountants, Mumbai and
M/s. Deloitte Haskins & Sells, Chartered Accountants,
Mumbai, be appointed as the Joint Statutory Auditors
of the Company to hold office from the conclusion
of the ensuing Annual General Meeting till the
conclusion of the next Annual General Meeting of
the Company. M/s. G.P. Kapadia & Co., Chartered
Accountants, Mumbai and M/s. Deloitte Haskins &
Sells, Chartered Accountants, Mumbai have
forwarded their certificates to the Company, stating
that their appointment, if made, will be within the
limit specified in that behalf in Sub-section (1B) of
Section 224 of the Companies Act, 1956.
Resolutions seeking your approval on these items
are included in the Notice of the ensuing Annual
General Meeting.
COST AUDITORS
In pursuance of Section 233-B of the Companies
Act, 1956, your Directors have appointed M/s R.J.
Goel & Co., Delhi, M/s K.G. Goyal & Co., Jaipur
and M/s N.D. Birla & Co., Ahmedabad, as the Cost
Auditors for the year 2010-11, subject to the
approval of the Central Government.
APPRECIATION
Your Directors wish to place on record their
appreciation of the dedication and commitment of
your Company’s employees to the growth of your
Company.
Your Directors express their gratitude to the Central
and State Governments, banks, financial institutions,
shareholders and business associates for their
ongoing co-operation and support.
For and on behalf of the Board
Adesh Gupta O. P. Puranmalka
Directors
Place: Mumbai
Date: 18th May, 2010
A N N E X U R E “A” TO T H E D I R E C TO R S ’ R E P O R T

In terms of the Scheme of Arrangement for demerger of the Cement Business of Grasim Industries Limited
(“Grasim”) to the Company (“Scheme of Arrangement”), the Company is required to offer one (1) employee
stock option for every employee stock option held by the eligible employees in Grasim, as on the date as
may be determined by Grasim for this purpose, under the Compensatory Stock Option Scheme created by
the Company (“ESOS-2010”), pursuant to the Scheme of Arrangement. The stock options enumerated in the
table below are in accordance with the Scheme of Arrangement.
Nature of disclosure Particulars
a) Options granted 1,85,654
b) The pricing formula Exercise Price
1st Tranche : Rs. 405 per option
2nd Tranche : Rs. 606 per option
In terms of the Scheme of Arrangement, the Exercise
Price of the stock options granted by Grasim under
its Stock Option Scheme (“ESOS-2006”) has been
divided between its stock options under ESOS-2006
and the stock options of the Company. The Exercise
Price as aforesaid has been determined accordingly.
c) Options vested 97,534
d) Options exercised Nil
e) The total number of shares arising as a result Nil
of exercise of options
f) Options lapsed Nil
g) Variation of terms of options None
h) Money realized by exercise of options Nil
i) Total number of options in force 1,85,654
j) Employee-wise details of options granted:
i) Senior managerial personnel: Mr. O.P. Puranmalka : 9,430
(Whole-Time Director till 31.03.2010)
ii) Any other employee who receives agrant None
in any one year of option amounting to
5% or more of option granted during that
year
iii) Identified employees who were granted None
option, during any one year, equal to or
exceeding 1% of the issued capital
(excluding outstanding warrants and
conversions) of the Company at the time
of grant
k) Diluted Earnings Per Share (EPS) pursuant to Rs. 55.90
issue of shares on exercise of options calculated
in accordance with Accounting Standard (AS)
20 ‘Earning per share’.

29
 l) Difference between the employee compensation Rs. 0.13 crore
cost computed using the intrinsic value of the
stock options and the employee compensation
cost that shall have been recognized if the fair
value of the options had been used.
The impact of this difference on profits and on Particulars Rs. Crores
EPS of the company
Net Profit 617.96
Add: Intrinsic value
Compensation Cost 0.17
Less: Fair Value
Compensation Cost 0.30
Adjusted Net Profit 617.83
Earnings Per share (Rs.)
(Basic and diluted) Basic Diluted
As reported : 55.92 55.90
As adjusted : 55.91 55.89
m) Weighted-average exercise prices and weighted- Options granted under 1st Tranche
average fair values of options whose exercise Weighted average exercise price : (Rs.) 405.00
price either equals or exceeds or is less than
the market price of the stock Weighted average fair value : (Rs.) 276.19
Options granted under 2nd Tranche
Weighted average exercise price : (Rs.) 606.00
Weighted average fair value : (Rs.) 231.87
As the shares of the Company are currently not
listed, the market price thereof is not available.
Hence, the classification is not applicable
n) A description of the method and significant
assumptions used to estimate the fair values of
options, including the following weighted-
average information:
(i) risk-free interest rate (%) 7.78
(ii) expected life (No. of years) 5
(iii) expected volatility (%) 33.40
(iv) dividend yield (%) 2.38
(v) the price of the underlying share in market Not applicable, as the shares of the Company are
at the time of option grant currently not listed

30
A N N E X U R E “B” TO D I R E C TO R S ’ R E P O R T

Information under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of
Particulars in the Report of Board of Directors) Rule, 1988 and forming part of the Directors’ Report for the
year ending 31st March, 2010
A CONSERVATION OF ENERGY
a) Energy Conservation measures taken
The Company is continuously engaged in the process of energy conservation through improved
operational and maintenance practices. Following measures have been taken by different units of
the company:
- Use of grinding aids for increasing blended cement production and fly ash absorption in
blended cement.
- Process Optimization in Raw Mill, Coal Mill and Cement Mills.
- Installation of Variable Frequency Drives.
- Modification in Compressed Air System and Cooling Tower.
- Installation of reject recirculation system and increasing filtration area of bag house.
- Modification in Pre-heater cyclones, immersion tube and guide vanes for Kiln.
- Usage of thermal power plant ash as fuel to recover residual heat value from petcoke.
b) Additional investment and proposals, if any, being implemented for reduction of consumption
of energy:
- Installation of waste heat recovery systems in pre heater and cooler.
- Cooler modification for recovery of cooler heat losses.
- Use of Solar Lighting System with LED lights.
- Improve efficiency of process fans.
- Installation of additional Air Heater Module for waste heat recovery at Kiln.
- Modification in Pre-heater cyclones and installation of higher efficiency fan at Dryer and
Decoloriser at Kiln.
c) Impact of Measures at (a) and (b) above for reduction of energy consumption and consequent
impact on the cost of production of goods:
- The above measures have resulted/ will result in reduction in fuel & power consumption,
increase in productivity and reduction in energy cost.
d) Total Energy Consumption and Energy Consumption per Unit of Production:
As per Form “A” attached.
B. TECHNOLOGY ABSORPTION
Efforts made in Technology Absorption in Form “B”.

31
RESEARCH & DEVELOPMENT (R&D)
FORM “B”
1 Specific areas in which R&D carried out by the Company:
- Development of variants of wall care putty.
2 Future Plan of Action
- Development of new variants of value added products
3 Expenditure on R & D
Expenditure Rs. Crs.
a. Capital 0.87
b. Recurring 1.99
2.86
c. Total R & D Expenditure as a percentage of turnover 0.07%
4 Technology Absorption, Adoption and Innovation
The Company continuously strives to adopt latest technology for improving productivity and product
quality and reducing consumption of scarce raw material, energy and other inputs.
Information regarding technology imported during the last five years:
- Installation of Loop Duct and TCS System through M/s Taiheiyo Engineering Corporation, Japan for
both kiln lines.
C. FOREIGN EXCHANGE EARNINGS AND OUTGO
(a) Activities related to Exports
Exports on F.O.B. basis during the year were Rs. 10.39 Crores
(b) Total Foreign Exchange used and earned
Foreign Exchange used Rs. 5.21 Crores
Foreign Exchange earned Rs. 10.43 Crores
FORM ‘A’
Total Energy Consumption and Energy Consumption per unit of Production
(A) POWER & FUEL CONSUMPTION
Unit Current Year
1. Electricity
a) Purchased - Unit ‘000 168449
Total amount Rs in lacs 7942
Rate per Unit Rs./Unit 4.72
b) Own Generation
I) Through Diesel Generator - Unit ‘000 52465
Unit per Liter of Diesel Oil Units/Ltr. 3.62
Cost / Unit Rs./Unit 8.06
II) Through Steam Turbine - Units ‘000 644967
Units per Kg. Of Steam Co-generation of Steam & Power
Cost / Unit Rs./Unit 3.28
(Cost of fuel and duties only)

32
(A) POWER & FUEL CONSUMPTION
Unit Current Year

2. Coal (Slack, Steam & ROM including

Lignite Coal & other Alternative Fuel)
For Co-generation of Steam & Power Tonne 775841
For Process in Cement Plants Tonne 1039120
Total amount Rs in lacs 68121
Average rate Rs./Tonne 3753.33
3. Furnace Oil (Including LSHS)
Quantity K. Ltrs. 13986
Total amount Rs in lacs 3534
Average rate Rs./K. Ltrs. 25266
4. Light Diesel Oil (LDO)
Quantity K. Ltrs. 0
Total amount Rs in lacs 0
Average rate Rs./K. Ltrs. 40833
5. High Speed Diesel Oil (HSD)
Quantity K. Ltrs. 2284
Total amount Rs in lacs 761
Average rate Rs./K. Ltrs. 33327

(B) CONSUMPTION PER UNIT OF PRODUCTION

Electricity (units) Coal/Petcoke
Current Current
Unit Year Year
Name of the Product
Cement
Grey Cement :
Electricity
Standard Per Tonne 100 -
Actual Per Tonne 81 -
Coal/Petcoke
Standard K.Cal Per Kg of Clinker - 710-800
Actual K.Cal Per Kg of Clinker - 709
White Cement :
Electricity
Actual Per Tonne 119 -
Coal/Petcoke
Actual Kg Per Tonne - 132

33
A U D I TO R S ’ R E P O R T

TO THE MEMBERS OF SAMRUDDHI CEMENT LIMITED

1. We have audited the attached Balance Sheet of SAMRUDDHI CEMENT LIMITED (“the Company”) as
at 31st March, 2010, the Profit and Loss Account and the Cash Flow Statement of the Company for the
period 4th September, 2009 (date of incorporation) to 31st March 2010, both annexed thereto. These
financial statements are the responsibility of the Company’s Management. Our responsibility is to
express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates made by the Management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. As required by the Companies (Auditor’s Report) Order, 2003 (CARO) issued by the Central Government
in terms of Section 227(4A) of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order.
4. Further to our comments in the Annexure referred to in paragraph 3 above, we report as follows:
(a) we have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with by this
report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt
with by this report are in compliance with the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956;
(e) in our opinion and to the best of our information and according to the explanations given to us, the
said accounts give the information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principles generally accepted in
India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2010;
(ii) in the case of the Profit and Loss Account, of the profit of the Company for the period from 4th
September, 2009 (date of incorporation) to 31st March 2010 and
(iii) in the case of the Cash Flow Statement, of the cash flows of the Company for the period 4th
September, 2009 (date of incorporation) to 31st March 2010.
5. On the basis of the written representations received from the Directors as on 31st March, 2010 taken on
record by the Board of Directors, we report that none of the Directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of Section 274(1)(g) of the Companies Act, 1956.
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO.
Chartered Accountants Chartered Accountants
(Registration No. 117364W) (Registration No. 104768W)

B. P. Shroff Atul Desai

Partner Partner
Membership No.: 34382 Membership No.: 30850
MUMBAI
Date : May 18, 2010

34
A N N E X U R E TO T H E AU D I TO R S ’ R E P O R T

(Referred to in paragraph 3 of our report of even date)

(i) Having regard to the nature of the Company’s business/activities/results clauses (x) regarding cash loss
incurred by the Company, (xiii) regarding chit fund, nidhi / mutual benefit fund / societies and (xiv)
regarding dealing or trading in shares, securities, debentures and other investments of CARO are not
applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details
and situation of the fixed assets.
(b) The fixed assets were physically verified during the period by the Management in accordance with a
programme of verification, which in our opinion, provides for physical verification of all the fixed
assets at reasonable intervals. According to the information and explanations given to us, no
material discrepancies were noticed on such verification.
(c) The fixed assets disposed off during the period, in our opinion, do not constitute a substantial part
of the fixed assets of the Company and such disposal has, in our opinion, not affected the going
concern status of the Company.
(iii) In respect of its inventory:
(a) As explained to us, the inventories were physically verified during the period by the Management
except stocks lying with third parties for which confirmations have been obtained. In our opinion the
frequency of verification is reasonable.
(b) In our opinion and according to the information and explanation given to us, the procedures of
physical verification of inventories followed by the Management were reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations given to us, the Company has
maintained proper records of its inventories and no material discrepancies were noticed on physical
verification.
(iv) The Company has neither granted nor taken any loans, secured or unsecured, to / from companies,
firms or other parties listed in the Register maintained under Section 301 of the Companies Act, 1956.
(v) In our opinion and according to the information and explanations given to us, there is an adequate
internal control system commensurate with the size of the Company and the nature of its business with
regard to purchases of inventory and fixed assets and the sale of goods and services. During the course
of our audit, we have not observed any major weakness in such internal control system.
(vi) To the best of our knowledge and belief and according to the information and explanations given to us,
there were no contracts or arrangements that needed to be entered in the Register maintained under
Section 301 of the Companies Act, 1956.
(vii) According to the information and explanations given to us, the Company has not accepted any deposit
from the public in terms of the provisions of Sections 58A and 58AA or any other relevant provisions of
the Companies Act, 1956.
(viii) In our opinion, the Company has an adequate internal audit system commensurate with the size and the
nature of its business.
(ix) We have broadly reviewed the books of account maintained by the Company pursuant to the rules
made by the Central Government for the maintenance of cost records under Section 209(1)(d) of the
Companies Act, 1956 in respect of the Company’s products to which the said rules are applicable and
are of the opinion that prima facie the prescribed accounts and records have been made and maintained.
We have, however, not made a detailed examination of the records with a view to determining whether

35
 they are accurate or complete. To the best of our knowledge and according to the information and
explanations given to us, the Central Government has not prescribed the maintenance of cost records
for any other product of the Company.
(x) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has been regular in depositing undisputed dues, including Provident Fund, Investor
Education and Protection Fund, Employees’ State Insurance, Income-tax, Sales Tax, Wealth Tax,
Service Tax, Custom Duty, Excise Duty, Cess and other material statutory dues applicable to it with
the appropriate authorities.
(b) There were no undisputed amounts payable in respect of above mentioned statutory dues in arrears
as at 31st March, 2010 for a period of more than six months from the date they became payable.
(c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise Duty and
Cess, to the extent applicable, which have not been deposited as on 31st March, 2010 on account
of disputes and the forum where the dispute is pending are given below:

Sr. Name of the statute Forum where dispute Amount Period

No. (Nature of dues) is pending (Rs in Crores)
1 Sale Tax and Value Added Act (Tax) Supreme Court, High Court 89.21 1994-2010
Tribunal 3.29 1988-2010
Appellate Authorities 28.29 1990-2010
Assessing Authorities 0.04 2000-2010
2 Income Tax Act, 1961 (Tax) Supreme Court, High Court 0.47 2006-2009
Appellate Authorities 0.01 2009-2010
3 Central Excise Act, 1944 Supreme Court, High Court 2.47 1995-2010
(Duty/Penalty) Tribunal 36.92 1994-2010
Appellate Authorities 4.64 2001-2010
Assessing Authorities 5.20 1991-2010
4 Cess under various Acts Supreme Court, High Court 78.35 2002-2010
(Cess/Interest)
5 Service Tax under the Tribunal 21.47 1997-2010
Finance Act, 1994 (Tax) Appellate Authorities 1.51 2004-2010

(xi) In our opinion and according to the information and explanations given to us, the Company has not
defaulted in the repayment of dues to banks, financial institutions and debenture holders during the
period.

(xii) In our opinion and according to the information and explanation given to us, the Company has not
granted loans and advances on the basis of security by way of pledge of shares, debentures and other
securities.

(xiii) In our opinion and according to the information and explanation given to us, the Company has not
given any guarantees for loans taken by others from banks or financial institutions.

(xiv) In our opinion and according to the information and explanations given to us, the term loans have
been applied for the purposes for which they were obtained other than temporary deployment pending
application.

(xv) In our opinion and according to the information and explanations given to us and on an overall
examination of the Balance Sheet, we report that funds raised on short-term basis have not been used
for long term investment.

36
(xvi) According to the information and explanations given to us, during the period covered by our audit
report, the Company has not made any preferential allotment of shares to parties and companies
covered in the Register maintained under Section 301 of the Companies Act, 1956.
(xvii) According to the information and explanations given to us and the records examined by us, security/
charges in respect of debentures transferred pursuant to the ‘Scheme of Arrangement’ under Sections
391 to 394 of the Companies Act, 1956, demerging the cement business of the parent company,
Grasim Industries Limited into the Company on 1st October, 2009, which became effective on 18th
May, 2010 are yet to be registered in the name of the Company.
(xviii) According to the information and explanations given to us, the Company has not raised any money by
way of public issue during the period.
(xix) During the course of our examination of the books and records of the company, carried out in
accordance with the generally accepted auditing practices in India, and according to the information
and explanations given to us, we have neither come across any instance of fraud on or by the
Company, noticed or reported during the year nor have we been informed of such case by the
management.

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO.

Chartered Accountants Chartered Accountants
(Registration No. 117364W) (Registration No. 104768W)

B. P. Shroff Atul Desai

Partner Partner
Membership No.: 34382 Membership No.: 30850

MUMBAI
Date : May 18, 2010

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

TO THE MEMBERS OF SAMRUDDHI CEMENT LIMITED

We have examined the compliance of conditions of corporate governance procedures implemented by

Samruddhi Cement Limited as on 18th May, 2010, as stipulated in Clause 49 of the Listing Agreement.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our
responsibility was limited to the review of procedures and implementation thereof, adopted by the Company
for ensuring the compliance of conditions of the Corporate Governance. It is neither an audit nor an
expression of opinion on the financial statements of the Company.
On the basis of our review and according to the information and explanation given to us, and representation
made by the management, the conditions of Corporate Governance as stipulated on Clause 49 of the
Listing Agreement have been complied with by the Company.
We state that such compliance is neither an assurance as to the future viability of the Company nor the
efficiency or effectiveness with which the management has conducted the affairs of the Company.

For G.P. KAPADIA & CO.,

Chartered Accountants

ATUL B. DESAI
Place: Mumbai Partner
Date: May 18, 2010 (Membership No. 30850)

37
B A L A N C E S H E E T A S AT 3 1 S T M A R C H , 2 0 1 0

Rs. in Crores
Schedules
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 85.00
Share Capital Suspense [Note 5(b), Sch.21(B)] 1B 45.84
Employee Stock Options Outstanding 1C 2.52
Reserves and Surplus 2 4,452.56
4,585.92
Loan Funds
Secured Loans 3 1,835.31
Unsecured Loans 4 707.51
2,542.82
Deferred Tax Liabilities (Net) [Note 16, Sch. 21(B)] 918.01
TOTAL FUNDS EMPLOYED 8,046.75
APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 9,038.70
Less: Depreciation/Amortisation 2,585.19
Net Block 6,453.51
Capital Work-in-Progress 392.95
6,846.46
Investments 6 1,238.64
Current Assets, Loans and Advances
Inventories 7 772.31
Sundry Debtors 8 241.52
Cash and Bank Balances 9 90.95
Loans and Advances 10 611.25
1,716.03
Less:
Current Liabilities and Provisions
Liabilities 11 1,505.07
Provisions 12 249.31
1,754.38
Net Current Assets (38.35)
TOTAL FUNDS UTILISED 8,046.75
Significant Accounting Policies and Notes on Accounts 21 & 22

Schedules referred to above form an integral part of the Balance Sheet

In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

38
PROFIT & LOSS ACCOUNT FOR THE PERIOD FROM 4TH SEPTEMBER, 2009
(DATE OF INCORPORATION) TO 31ST MARCH, 2010

Rs. in Crores
Schedules
INCOME
Gross Sales 4,745.70
Less: Excise Duty 455.07
Net Sales 4,290.63
Interest and Dividend Income 13 10.88
Other Income 14 39.07
Increase in Stocks 15 48.39
4,388.97

EXPENDITURE
Raw Materials Consumed 16 535.61
Manufacturing Expenses 17 1,245.18
Purchases of Finished Goods 53.14
Payments to and Provisions for Employees 18 198.62
Selling, Distribution, Administration and Other Expenses 19 1,120.97
Interest 20 87.06
Depreciation and Amortisation [Note 2, Sch. 5] 213.12
3,453.70
Less: Captive Consumption of Cement (Net of Excise Rs. 6.13 Crores) 6.72
3,446.98
Profit before Tax Expenses 941.99
Provision for Current Tax (including Wealth Tax Rs. 0.79 Crores) 179.26
Deferred Tax 144.77
Profit after Tax and available for Appropriation 617.96
Appropriations:
Debenture Redemption Reserve 12.50
Proposed Dividend 45.79
Corporate Dividend Tax 7.61
General Reserve 200.00
Balance carried to Balance Sheet 352.06
617.96
Basic earnings per share (Rs.) 55.92
Diluted earnings per share (Rs.) 55.90
Significant Accounting Policies and Notes on Accounts 21 & 22

Schedules referred to above form an integral part of the Profit and Loss Account

In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

39
S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

Rs. in Crores
SCHEDULE 1A
SHARE CAPITAL
Authorised
202,000,000 Equity Shares of Rs. 5 each 101.00
(Effective 18th May, 2010 stands increased to 270,000,000
Equity Shares of Rs. 5 each, Rs. 135.00 Crores pursuant to
Scheme of Arrangement)
Issued, Subscribed and Paid up
170,000,000 Equity Shares of Rs. 5 each fully paid 85.00
All of the above, Equity Shares of Rs. 5 each fully paid up
aggregating 100 % of the Company’s paid up Share Capital
are held by Grasim Industries Ltd., the Holding Company.
SCHEDULE 1 B
SHARE CAPITAL SUSPENSE
Share Capital Suspense 45.84
91,683,571 Equity Shares of Rs. 5 each, fully paid, to be issued
without payment being received in cash pursuant to Scheme
of Arrangement. Refer Note 5(b) of Schedule 21 (B).
(Excluding issue of 14,906 Equity Shares kept in abeyance
against shares of Grasim Industries Limited under Share
Capital Suspense)
45.84
SCHEDULE 1 C
EMPLOYEE STOCK OPTIONS OUTSTANDING
Employee Stock Options Outstanding 2.86
Less : Deferred Employees Compensation Expenses 0.34
2.52
Outstanding Employee Stock Options exercisable into 185,654
Equity Shares of Rs. 5 each fully paid up. [Note 19 of Schedule 21(B)]
SCHEDULE 2
RESERVES AND SURPLUS Rs. in Crores
Reserves transferred Addition Deduction/ Balance as at
from Grasim Industries during the Adjustments 31st March, 2010
Ltd. as per Scheme of period during the
Arrangement * period
1. Capital Reserve
- Capital Subsidy 0.30 - - 0.30
2. Debenture Redemption Reserve 27.50 12.50 - 40.00
3. General Reserve # 3,862.80 200.00 2.60 4,060.20
4. Surplus as per Profit and Loss Account - 352.06 - 352.06
3,890.60 564.56 2.60 4,452.56
* Refer note 5 of Schedule 21(B)
# Opening General Reserve
Excess of assets over liabilites transferred from Grasim Industries Limited as per
Scheme of Arrangement 4,088.26
Less : - Share Capital Suspense (Refer Note 5(b) of Schedule 21 (B)) (45.84)
- Deferred Tax Liability recognised on transferred assets towards
accumulated depreciation. (92.24)
- Provision for costs in relation to transfer of assets pursuant to
Scheme of Arrangement (Net of Tax) (87.38)
3,862.80

# Deduction/Adjustments of Rs. 2.60 Crores from General Reserve represents transfer to Employee Stock Option
Outstanding against the Stock Option to be granted against ESOS 2006 of Grasim Industries Limited in terms of
the Scheme of Arrangement (refer note 19 of Schedule 21B).

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Rs. in Crores
SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures (Note 2) 500.00
Loans and advances from Banks:
- Working Capital Borrowings (Note 3) 74.10
- Rupee Term Loans (Note 4) 450.00
- Foreign Currency Loans (Note 5) 747.71
- Buyer’s Credit (Note 6) 60.40
Deferred Sales Tax Loan (Note 7) 3.10
1,835.31
Notes:

1 Refer Note 5 (d) (ii) of Schedule 21 (B)

2 Non-Convertible Debentures :
(a) 10.48% - XXXVII Series Non-Convertible Debentures
(redeemable at par on 16th December, 2013); 200.00
(b) 8.80% - XXXVIII Series Non-Convertible Debentures
(redeemable at par on 30th December, 2015, with
Put & Call option on 30th December, 2013); and 100.00
(c) 8.01% - XXXIX Series Non-Convertible Debentures
(redeemable at par on 14th July, 2016, with Put &
Call option on 14th July, 2014) 200.00
are secured by first pari passu charge on the fixed assets,
both present and future, of the units at Rawan;
Reddipalayam; Shambhupura; Jawad; Hotgi; Bathinda; Malkhed;
White Cement Unit at Kharia Khangar;
and Bulk Terminal at Doddaballapur.

500.00

3 Working Capital Borrowings from Banks are secured by hypothecation

of stocks and book debts of the Company. 74.10
4 Rupee Term Loans from Banks are secured by first pari passu charge on
certain fixed assets, both present and future, of Kotputli unit. 450.00
5 Foreign Currency Loans from Banks are secured by first pari passu charge on the
fixed assets, both present and future, of the units as mentioned in Note 2 above. 747.71
6 Buyer’s Credit from Bank is secured by exclusive charge on certain specific fixed
assets of Kotputli unit. 60.40
7 Deferred Sales Tax Loan is secured by bank guarantee backed by hypothecation
of stocks and book debts of the Company. 3.10

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

Rs. in Crores

SCHEDULE 4
UNSECURED LOANS

Short Term Loans and Advances

From Banks:
Buyer’s Import Credit 13.46
Other Loans and Advances:
From Banks:
Foreign Currency Loans 518.76
Buyer’s Import Credit (Due within a year Rs. 82.16 Crores) 82.16
From Others:
Deferred Sales Tax Loan (Due within a year Rs. 67.43 Crores) 93.13

707.51

SCHEDULE 5
FIXED ASSETS Rs. in Crores
PARTICULARS GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK
Transferred Additions Deductions As at Transferred For the Deductions Upto As at
from Grasim 31.03.2010 from Grasim period 31.03.2010 31.03.2010
Industries Ltd Industries Ltd
on 01.10.09 on 01.10.09
as per the as per the
Scheme of Scheme of
Arrangement Arrangement
(Note 1) (Note 1)
1 Freehold Land 379.05 114.51 - 493.56 - - - - 493.56

2 Leasehold Land 90.00 8.33 - 98.33 15.81 2.67 - 18.48 79.85

3 Buildings 486.25 47.55 0.35 533.45 86.87 7.18 0.14 93.91 439.54

4 Railway Sidings 103.03 12.43 - 115.46 43.71 2.43 - 46.14 69.32

5 Plant and Machinery 7,110.16 522.57 7.46 7,625.27 2,122.35 190.32 3.38 2,309.29 5,315.98

6 Furniture, Fittings and

Office Equipment 129.79 6.21 8.36 127.64 94.28 6.07 7.94 92.41 35.23

7 Vehicles 17.42 2.20 0.68 18.94 6.67 1.29 0.50 7.46 11.48

8 Intangible Assets
- Computer Software 25.66 1.12 0.73 26.05 15.03 3.20 0.73 17.50 8.55

TOTAL 8,341.36 714.92 17.58 9,038.70 2,384.72 213.16 12.69 2,585.19 6,453.51
Capital work-in-progress (including Advances and Pre-operative Expenses) 392.95
6,846.46

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SCHEDULE 5 (Contd.)
Rs. in Crores
Notes:

1 Refer note 5 (e) of Schedule 21(B)

2 Depreciation and Amortisation for the year 213.16
Less: Transferred to pre-operative expenses (Towards use of assets during pre-operative period) 0.04
213.12

3 Execution of documents in respect of plots of Freehold Land amounting to Rs. 0.39 Crores is pending.

4 Buildings include Rs.16.07 Crores being cost of Debentures of and shares in a Company entitling the right of
exclusive occupancy and use of certain premises.

5 Assets amounting to Rs.14.98 Crores are held on co-ownership with other Companies.

6 Fixed assets include assets of Rs. 37.63 Crores not owned by the Company.

7 Plant and machinery includes assets given on operating lease amounting to Rs. 25.54 Crores

8 Capital work in progress includes advance against capital orders, technical know-how and supervision fees,
machinery under installation/in transit, construction materials purchases, other assets under erection and pre-
operative expenses.

9 Leasehold land includes mining rights.

10 The title deeds of immovable properties pursuant to Scheme of Arrangement are yet to be transferred in the name
of the Company.

11 The above includes Research and Development Assets (Plant and Machinery, Furniture, Fittings and Office
Equipments and Intangible Assets) in Gross Block as on 01.10.2009 of Rs. 11.41 Crores and Net Block as on
01.10.2009 of Rs. 9.23 Crores. Additions for the said Assets during the period is Rs. 0.87 Crores.

12 Pre-operative Expenses incurred during the year :

Salaries, Wages, Bonus, Gratuity, etc. 1.01
Contribution to Provident and Other Funds 0.09
Employees’ Welfare Expenses 0.02
Rent and Hire charges 0.08
Rates and Taxes 0.02
Stationery, Printing, Postage and Telephone Expenses 0.01
Travelling and Conveyance 0.19
Legal and Professional Charges 2.18
Depreciation 0.04
Miscellaneous Expenses (Net) 1.37
Interest on Loans and Debentures 10.51
15.52
Less : Sale of Trial Run Production 1.70
Balance Transferred to Fixed Assets/ Capital Work in Progress 13.82

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

Rs. in Crores
SCHEDULE 6
INVESTMENTS
LONG TERM (Trade) (At Cost unless otherwise stated)
Shares In Subsidiary Companies - Unquoted
Fully Paid - Equity Shares of Rs.10 each
50,000 Harish Cement Limited 0.10
Others - Unquoted
Fully Paid - Equity Shares of Rs.10 each
4,429,997 Bhaskarpara Coal Company Limited 4.43
CURRENT (At Cost or Fair Value, whichever is less)
Unquoted
1,168,732,446 Units of Debt Schemes of various Mutual Funds 1,234.11

1,238.64

Aggregate Book Value of Unquoted Investments 1,238.64

Note : No. of Units of Various Mutual Funds - Purchased and Redeemed during the year 3,368,797,614
SCHEDULE 7
INVENTORIES
Stores and Spare parts, Packing Materials and Fuel 421.00
Raw Materials 72.64
Finished Goods 87.60
Process Stock 185.98
Waste/Scrap 5.09
772.31
SCHEDULE 8
SUNDRY DEBTORS *
(Unsecured, considered good unless otherwise stated)
Due for period exceeding six months 10.27
(Net of doubtful, fully provided Rs. 1.07 Crores)
Others 231.25

241.52
* Includes amount in respect of which the Company holds deposits. 52.48
SCHEDULE 9
CASH AND BANK BALANCES
Cash balance on hand 0.57
Bank Balances with Scheduled Banks:
Current Accounts (including cheques under collection) 90.33
Deposit Accounts # 0.05
90.38
90.95

Note :
# (a) Rs. 0.04 Crore lodged as security with Government Department.
(b) Rs. 0.01 Crore as Interest accrued.

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

Rs. in Crores
SCHEDULE 10
LOANS AND ADVANCES
(Unsecured, considered good except otherwise stated)
Deposits and Balances with Government and other Authorities (including accrued interest ) 78.91
Other Deposits (Net of Doubtful, fully provided Rs. 3.32 Crores) 65.61
Advances to Holding Company 0.09
Advances to Subsidiaries 73.84
Advances recoverable in cash or in kind or for value to be received 376.35
Advance Income Tax (Net of Provision for Taxation) 16.45
611.25

SCHEDULE 11
CURRENT LIABILITIES
Sundry Creditors :
a) Micro, Small & Medium Enterprises -
[To the extent identified with available information, Note 10 of Sch.21(B)]
b) Others 859.34
859.34
Security and Other Deposits 240.77
Other Liabilities 354.82
Interest accrued but not due on Debentures and Loans 50.14
1,505.07

SCHEDULE 12
PROVISIONS
Provision for Employee Benefits 64.03
Provision for Mines Restoration Expenditure 0.72
Provision for Assets Transfer Cost on demerger [Refer Note 5(c) of Schedule 21(B)] 131.16
Proposed Dividend 45.79
Corporate Dividend Tax 7.61
249.31

SCHEDULE 13
INTEREST AND DIVIDEND INCOME
i) On Investments
Dividends on Current Investments 9.99
ii) Others : Interest (Gross) on:
Bank and Other Accounts (Tax deducted at source Rs. 0.35 Crore) 0.89
10.88

SCHEDULE 14
OTHER INCOME
Export Incentives 0.46
Rent Received (Tax deducted at source Rs. 0.02 Crore) 0.36
Lease Rent (Tax deducted at source Rs. 0.17 Crore) 1.63
Insurance Claims 1.91
Profit on Sale of Current Investments (Net) 0.03
Excess Provisions written back (Net) 18.18
Scrap/Waste Sales (Net of Excise Duty) 8.84
Miscellaneous Receipts 7.66
39.07

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Rs. in Crores
SCHEDULE 15
INCREASE/(DECREASE) IN STOCKS
Closing Stock
Finished Goods 87.60
Process Stock 185.98
Waste/Scrap 5.09
278.67
Stock transferred from Grasim Industries Ltd. as per Scheme of Arrangement.
Finished Goods 101.10
Process Stock 121.94
Waste/Scrap 5.28
228.32
Add: (Increase)/Decrease in Excise Duty on Stocks (0.26)
Stock Transfer from pre-operative expenses (1.70)
48.39

SCHEDULE 16
RAW MATERIALS CONSUMED
Stock transferred from Grasim Industries Ltd. as per Scheme of Arrangement 74.64
Purchases and Incidental Expenses (includes cost of Lime Stone raised) 533.61
608.25
Less : Closing Stock 72.64
535.61

SCHEDULE 17
MANUFACTURING EXPENSES
Consumption of Stores, Spare Parts and Components, Packing Materials and Incidental Expenses 248.03
Power and Fuel 831.57
Processing Charges 8.24
Freight and Handling expense on Clinker transfer 109.37
Repairs to Buildings 8.80
Repairs to Machinery (excluding Spare Parts and Components) 30.74
Repairs to Other Assets 8.43
1,245.18

SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 176.70
Contribution to Provident and Other Funds 12.05
Welfare Expenses 9.70
Employee compensation expenses under Employee Stock Option Scheme 0.17
(Refer Note 19 of Schedule 21(B))
198.62

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Rs. in Crores
SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission to Selling Agents 39.69
Brokerage and Discount 56.43
Freight and Handling Expenses 735.02
Advertisements and Sales Promotion 147.95
Insurance 5.34
Rent (including Lease Rent) 13.92
Rates and Taxes 36.69
Stationery, Printing, Postage and Telephone Expenses 7.14
Travelling and Conveyance 15.82
Legal and Professional charges 20.31
Bad debts written off 0.01
Donations 1.50
Exchange Rate Difference (Net) 6.74
Loss on Sale and/or discard of Fixed Assets (Net) 0.96
Miscellaneous Expenses (includes diminution in value of current investment Rs 0.07 Crores) 33.45
1,120.97
SCHEDULE 20
INTEREST
On Fixed Period Loans and Debentures 86.64
Other Interest 10.93
97.57
Less: Interest Capitalized 10.51
87.06

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SCHEDULE 21
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
(A) Significant Accounting Policies :
1. Accounting Concepts:
The financial statements are prepared and presented in accordance with the Generally Accepted Accounting
Principles (GAAP) in India and comply in all material aspects with the Accounting Standards (AS) notified under the
Companies (Accounting Standard) Rules, 2006 (as amended), other pronouncements of the Institute of Chartered
Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines issued by Securities and
Exchange Board of India.
2. Use of Estimates:
The preparation of financial statements require estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of financial statements and reported amount of revenues and expenses
during the reporting period. Difference between the actual results and estimates are recognized in the period in
which the results are known/materialized.
3. Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation/ amortisation. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working condition for its intended use.
4. Treatment of expenditure during construction period:
Expenditure during construction period is included under Capital Work in Progress and the same is allocated to
the respective fixed assets on the completion of its construction.
5. Foreign Currency Transactions:
Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. Monetary
assets and liabilities in foreign currency existing at Balance Sheet date are translated at year-end exchange
rates.Exchange differences, including premium or discount on forward exchange contracts, arising till the
commissioning of fixed assets, relating to borrowed funds and liabilities in foreign currency for acquisition of the
fixed assets are adjusted to the cost of fixed assets. Other premium or discount on forward exchange contracts is
amortised as expense or income over the life of the contract. All other exchange differences are recognised in
Profit and Loss Account.
6. Financial Derivatives:
Financial Derivative instruments such as Swaps and Options, are used to hedge risks associated with fluctuations
in foreign exchange and interest rates. The derivative contracts are closely linked with the underlying transactions
and are intended to be held to maturity. The underlying transactions are recorded as per terms of the financial
derivative contracts.
7. Investments:
Investments are classified as long term based on management intention at the time of purchase, all other
investments are classified as current investment. Current investments are stated at lower of cost and fair value.
Long term investments are stated at cost after deducting provisions made, if any, for permanent diminution (i.e.
other than temporary diminution) in value.
8. Inventories:
Inventories except scrap/waste are valued at the lower of cost and net realisable value. Waste/scrap is valued at net
realisable value. The cost is computed on weighted average basis.
Cost of Finished goods and process stock include cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Obsolete, defective, slow moving and unserviceable inventories are duly provided for.
9. Depreciation/Amortisation:
Depreciation/ Amortisation charge is provided for on the following basis:
(a) On fixed assets - on straight line method applying the rates/useful life specified in Schedule XIV of the
Companies Act, 1956, except as stated hereunder :
Asset Estimated Useful Life
Leasehold Land over the period of lease
Capital expenditure on assets not owned 5 years
Motor Cars 5 years
Computer Software 3 years
Computer and Other Electronic Office Equipments 4 years
Furniture and Fixtures and Electrical Fittings 7 years
Mobile Phone 3 years
Continuous process plants as defined in Schedule XIV have been classified on technical assessment and
depreciation provided accordingly.

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SCHEDULE 21 (Contd.)
(b) In respect of fixed assets added/disposed off during the year on pro-rata basis with reference to the month of
addition/deduction except in case of new projects where it is provided on the basis of days of use.
10. Impairment of Assets:
Carrying amount of assets is reviewed at Balance Sheet date, if there is indication of impairment, based on the
internal and external factors. The assets are treated as impaired when the carrying amount of asset exceeds its
recoverable amount. An impairment loss, if any, is charged to Profit and Loss Account in the year in which the
asset is identified as impaired. Reversal of impairment loss recognised in prior years, is recorded when there is an
indication that impairment loss recognised for the asset no longer exists or has decreased.
11. Revenue Recognition:
(a) Sales revenue is recognised on transfer of the significant risks and rewards of ownership of the goods to the
buyer and stated at net of sales tax, VAT, trade discounts and rebates but includes excise duty.
(b) Dividend income on investments is accounted for when the right to receive the payment is established.
(c) Interest income is recognised on time proportion basis.
(d) Certain claims of the Company viz. export incentives, insurance, railway etc. in respect of which quantum of
accruals cannot be ascertained with reasonable certainity, are accounted on acceptance basis.
12. Employee Benefits:
(a) Short term employee benefits and contribution to defined contribution plans are recognised as an expense on
accrual at the undiscounted amount in the Profit and Loss Account.
(b) The contribution as specified under the law are paid to the provident fund set up as irrevocable trust by the
Company or to Regional Provident Fund Commissioner. The Company is generally liable for annual contribution
and any shortfall in the fund assets based on the government specified minimum rates of return and
recognises such contributions and shortfall, if any, as an expense in the year incurred.
(c) Post employment and other long term employee benefits are recognised as an expense, at the present value
of the amounts payable determined using actuarial valuation techniques, in the Profit and Loss Account for
the year. Actuarial gains and losses in respect of post employment and other long term benefits are charged
to the Profit and Loss Account.
(d) Employee Stock Option Scheme: The intrinsic value of options granted under Employee Stock Option Scheme
is recognised as deferred compensation cost and amortised over the vesting period.
13. Government Grants:
Government Grants are recognised when there is reasonable assurance that the same will be received. Capital
grants relating to specific assets are reduced from the gross value of the fixed assets and capital grants for Project
Capital Subsidy are credited to Capital Reserve. Revenue grants are recognised in the Profit and Loss Account or
deducted from related expenses.
14. Borrowing Cost:
Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the
acquisition/construction of qualifying fixed assets are capitalised upto the date when such fixed assets are ready
for their intended use and all other borrowing costs are charged to Profit and Loss Account.
15. Provision for Current and Deferred Tax:
Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period in
accordance with the provisions of Income Tax Act, 1961. Deferred Tax resulting from timing difference between
book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or
substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only
to the extent there is a reasonable certainty that the deferred tax assets will be realised in future.
16. Mines Restoration Expenditure:
The Company provides for the expenditure to restore the mines based on technical estimates by internal/external
specialists. The total estimate of restoration expenditure is apportioned over the estimated quantities of total
mineral reserves and provision is made based on the minerals mined during the year.
17. Operating Leases:
Leases where significant portion of risk and reward of ownership are retained by the Lessor are classified as
Operating Leases and lease rentals thereon are charged to Profit and Loss Account.

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SCHEDULE 21 (Contd.)
18. Provisions/Contingencies:
A provision is recognised when there is a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
Provisions are determined based on best estimate of the amount required to settle the obligation at the Balance
Sheet date.
Contingent Liabilities are not recognised but are disclosed and Contingent Assets are neither recognised nor
disclosed, in the financial statements.
19. Research and Development expenditure:
Expenditure incurred during research phase is charged to revenue when no intangible asset arises from such
research. Assets procured for research and development activities are generally capitalised.
(B) NOTES ON ACCOUNTS Rs.in Crores
1 Contingent Liabilities not provided for in respect of:
Claims not acknowledged as debts 373.28
(Includes demands in respect of Royalty on Limestone,
Excise Duty, Entry Tax, Cenvat Credit, etc.)
2 Estimated amount of Contracts remaining to be executed on capital account and not 220.12
provided (Net of advance paid Rs. 34.11 Crores).
3 The Company, incorporated on 4th September, 2009, has the main object of carrying on the business of
manufacture and sale of cement and allied products. Accordingly, the current financial year is for the period from
4th September 2009 to 31st March, 2010. This being the first financial year of the Company since incorporation,
disclosure of previous year figures is not applicable.
4 The Company was incorporated by Samruddhi Swastik Trading and Investments Limited (SSTIL) with an Authorised
Share Capital of Rs. 101 Crores divided into 20,20,00,000 Equity Shares of Face Value Rs. 5 each, Grasim
Industries Limited (GIL) acquired the entire holding from SSTIL at par on 3rd October, 2009 and the Company
became a Subsidiary of GIL.
5 (a) Pursuant to a Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956, GIL has
demerged its Cement Business comprising inter alia of Grey Cement, White Cement and Ready Mix Concrete
and vested into the Company with effect from 1st October, 2009 on a going concern basis. The Scheme has
been approved inter alia by the Shareholders of GIL and Hon’ble High Courts of Madhya Pradesh, Indore
Bench and Gujarat and has become effective on 18th May, 2010.
(b) In terms of the Scheme, the Company will issue and allot its shares to the shareholders of GIL in the ratio of
one equity share of face value of Rs. 5 each fully paid up in the Company for every one equity share of face
value of Rs. 10 each fully paid held by the shareholders of GIL on 28th May, 2010, the record date fixed for
the purpose. Pending allotment of these shares, the amount of Rs. 45,84,17,855 is disclosed as ‘Share
Capital Suspense’. Upon allotment of equity shares to the shareholders of GIL, the shareholding of GIL in the
Company will reduce to 64.96%.
(c) Transfer and vesting of assets and liabilities of the Cement Business of GIL to the Company has been effected
at the values appearing in the books of accounts of GIL as at 30th September, 2009 and recorded as such
in the book of accounts of the Company. Excess of assets over liabilities (net of Debenture Redemption
Reserve of Rs. 27.50 Crores and Capital Subsidy Reserve of Rs. 0.30 Crores transferred as liabilities
pertaining to Cement Business) so recorded, amounting to Rs. 4,088.26 Crores is recognized in these
financial statements, and as stipulated in the scheme, has been credited to ‘General Reserve’. Assets transfer
cost on demerger will be borne by the Company pursuant to the Scheme of Arrangement.
(d) (i) As the Scheme became effective on 18th May, 2010, though the Assets and the Liabilities as on 31st
March, 2010 arising out of the transferred business are vested in the Company, titles of the same are still
not transferred in the name of the Company and being held in the name of GIL.
(ii) Creation of securities against the secured loans as per Schedule 3 of Secured Loans is not yet effected.

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SCHEDULE 21 (Contd.)
(e) The details of the Assets and Liabilities relating to the Cement Business vested with the Company with
effect from 1st October, 2009, the appointed date are as follows:
Particulars Rs. in Crores
ASSETS
Gross Block 8,341.36
Less : Depreciation and Amortisation 2,384.72
Net Block 5,956.64
Capital Work-in-Progress 717.26 6,673.90
Investments 0.66
Current Assets, Loans and Advances
Inventories 795.62
Sundry Debtors 304.12
Cash and Bank balances 118.67
Loans and Advances 571.87
1,790.28
Less :
Current Liabilities snd Provisions
Liabilities 1,435.70
Provisions 63.81

1,499.51
Net Current Assets 290.77
TOTAL ASSETS 6,965.33
LIABILITIES
Debenture Redemption Reserve 27.50
Capital Subsidy Reserve 0.30 27.80
Loan Funds
Secured Loans 1,392.24
Unsecured Loans 741.17 2,133.41
Deferred Tax Liabilities (Net) 715.86
TOTAL LIABILITIES 2,877.07

Excess of Assets over Liabilities 4,088.26

Contingent Liabilities not provided for 331.10
(f) In terms of the Scheme, the Company will formulate a Compensatory Employee Stock Option Scheme
(CESOS) under which stock option holders of GIL will be entitled to one employee stock option of the
Company for every employee stock option held in GIL.
6 Pursuant to a separate Scheme of Arrangement/Amalgamation under sections 391 to 394 of the Companies
Act, 1956, the Company is proposed to be amalgamated with Ultratech Cement Limited (Ultratech), a
subsidiary of GIL w.e.f 1st July, 2010. The Scheme has been approved by the Shareholders of the Company
and also by Shareholders of GIL and Ultratech. The Scheme will be effective upon approval of the same by
the Hon’ble High Courts of Bombay and Gujarat and such other actions as may be required to be taken in
terms of the Scheme. Upon effectiveness of the Scheme, the shareholders of the Company will receive 4 (four)
equity shares of Ultratech of the face value of Rs. 10 each, credited as fully paid up, for every 7 (seven) fully
paid up shares of the Company of face value of Rs. 5 each held on the record date to be fixed for the
purpose. No effect of the Scheme is required or possible at this stage.
7 The Ministry of Coal, Government of India, has alloted a Coal block in Jharkhand to the Company together
with one other allottee for captive consumption. The allottees have formed a Joint Venture Company i.e.
Bhaskarpara Coal Co. Limited (BCCL) for the aforesaid purpose. In terms of Joint Venture agreement, the
Company holds 4,429,997 equity shares of Rs. 10 each aggregating 47.37% of the paid up capital of BCCL.

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)
8 (a) Loans and Advances in the nature of loans/advances given to Holding and Subsidiary Companies.
Rs. in Crores
Balance as on Maximum Balance
31st March, 2010 outstanding during the period
Harish Cement Limited (Subsidiary Company) 73.84 73.84
Grasim Industries Limited (Holding Company) 0.09 0.09
(b) Advances recoverable in cash or in kind include:
Payments made to employees by way of Loans and Advances in the nature of loan where no interest is
charged or interest is charged at a rate less than the rate prescribed in Section 372A of Companies Act,1956
Rs. in Crores
Outstanding as on 31st March, 2010 8.01
Maximum balance outstanding during the period. 9.31
9 The Ministry of Textiles, vide its orders dated 30th June, 1997 and 1st July, 1999 has deleted cement from the list
of commodities to be packed in Jute bags under the Jute Packaging (Compulsory use in Packing Commodities)
Act, 1987. In view of this, the Company does not expect any liability for non-despatch of cement in Jute bags in
respect of earlier years, carried on by its predecessors.
10 There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small and Medium Enterprises
Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest
and accordingly no additional disclosures have been made. The above information regarding Micro, Small and
Medium Enterprises has been determined to the extent such parties have been identified on the basis of information
avaliable with the Company. This has been relied upon by the auditors.
11 The following are included under other heads of expenses in the Profit and Loss Account :
Rs. in Crores
(a) Stores and Spares Consumed 24.70
(b) Power and Fuel 25.75
(c) Repairs to Machinery 9.80
(d) Royalty and Cess 78.13
(e) Rates and Taxes 6.56
(f) Others 3.40
12 Revenue expenditure on Research and Development included in different heads of expenses in the Profit and Loss
Account is Rs. 1.99 crores.
13 Auditors’ Remuneration
Rs in Lakhs
(a) Statutory Auditors:
Audit fee 64.73
Tax audit fee 7.50
For certification and other work 6.56
Reimbursement of expenses 2.86
(b) Cost Auditors:
Audit fee 2.39
For certification and other work —
Reimbursement of expenses 0.23
14 Managerial Remuneration* :
Rs. in Crores
(Paid to Whole-Time Director; Rs. Nil to Manager)
Salary 0.25
Contribution to Provident and other funds 0.04
Perquisite 0.02
0.31
* In the determination of Manager’s remuneration, certain perquisites have been valued in accordance with the
Income Tax Rules, 1962.
Expenses towards gratuity and leave encashment provisions are determined actuarially on an overall company basis at
the end of each year and accordingly have not been considered in the above information. Employee compensation
under Employee Stock Option Scheme has also not been considered in the above information.

52
S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)
15 Earnings per share:
Net profit for the period attributable to equity shareholders Rs. in Crores 617.96
Weighted average number of equity shares outstanding Numbers 110,505,024
Weighted average Potential Equity Shares on exercise of option Numbers 35,260
(i) Basic earnings per share (face value of Rs.5 each) Rs. 55.92
(ii) Diluted earnings per share (face value of Rs.5 each) Rs. 55.90
Rs. in Crores
16 Deferred Tax Assets and Liabilities as on 31st March, 2010 are as under:
Deferred Tax Assets:
Accrued Expenses deductible on payment basis 59.32
Expenses allowable in installments in Income Tax 35.58
Others 0.90
95.80
Deferred Tax Liability :
Accumulated Depreciation 1,013.81
Net Deferred Tax Liability 918.01

17 Details of Company’s interest in its Joint Ventures, having Joint Control , as per the requirement of AS-27 on
Financial Reporting of Interest in Joint Ventures is as under :
Rs. in Crores

Bhaskarpara Coal
Particulars Co.Limited
% Share Held 47.37%
(a) Assets 4.39
(b) Liabilities 0.00*
(c) Income 0.00
(d) Expenses 0.04
* Denotes amount below Rs. 0.01 Crores
18 The Company has one business segment “Cement” as its primary segment. The Company has secondary segment
(geographical segment) which being insignificant is not disclosed.
19 In terms of the Scheme of Arrangement, as mentioned in Note 5 of Schedule 21 (B), a Compensatory Employee
Stock Option Scheme (CESOS) will be formulated under which the stock option holders of GIL will be entitiled to
one employee stock option of the Company for every employee stock option held by them in GIL. The CESOS is
an outcome of the Scheme and is in no way a modified or a new ESOS.
The impact on account of CESOS has been accounted for on provisional basis, based on the divided grant price
of the stock options to be issued by the Company under CESOS, as per the division of stock option grant price
under GIL’s Employee Stock Option Scheme 2006 (ESOS 2006) recommended by the Merchant Bankers to GIL’s
ESOS 2006. Adjustments, if any, required on final approval of grant price by the Compensation Committee of the
Board of Directors of GIL in consultation with the Board of Directors of the Company, will be carried out in the
next year.
The provisional grant price considered for options under CESOS is Rs. 405 per stock option granted under the
Tranche I and Rs. 606 per stock option granted under Tranche II of ESOS 2006.

53
S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)

Under the ESOS - 2006 of GIL, GIL has granted 218140 Options to its eligible employees in two tranches, the
details of which are given hereunder :
(A) Employee Stock Option Scheme:
Particulars Tranche I Tranche II

No. of Options granted 201530 16610

Method of Accounting Intrinsic Value Intrinsic Value

Vesting Plan Graded Vesting - Graded Vesting -

25% every year 25% every year

Normal Exercise Period 5 Years from the 5 Years from the

date of Vesting date of Vesting

Grant Date 23rd August, 2007 25th January, 2008

Grant Price (Rs. Per share) 1928 2885

Market Price on the Date of Grant of Option (Rs.) 2728 2885

(B) Movement of Options Granted:

Particulars For the Period ended

31st March, 2010

Options Outstanding at the beginning of the period -

Granted pursuant to the Scheme of Arrangement 185654

Exercised during the period -

Lapsed during the period -

Options outstanding at the end of the period 185654

Options unvested at the end of the period 88120

Options exercisable at the end of the period 97534

(C) Fair Valuation:

The fair value of options used to compute proforma net income and earnings per equity share has been done
by an independent firm of Chartered Accountants on the date of grant of original scheme using Black-Scholes
Model.

The Key assumptions in Black-Scholes Model for calculating fair value as on the date of grant are:

(i) Risk Free Rate 7.78%

(ii) Option Life Vesting Period (1 Year) + Average of exercise period

(iii) Expected Volatility Tranche I : 33%, Tranche II : 36%

(iv) Expected Growth in Dividend 2.38%

The weighted average fair value of the option as on the date of grant of ESOS - 2006 by GIL works out to
Rs. 273 per stock option.

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)

Had the compensation cost for the stock options to be granted under CESOS been determined, based on fair-value
approach, the Company’s net profit and earnings per share would have been as per the proforma amounts indicated
below:
Rs. in Crores

Particulars For the Period

ended 31st
March, 2010

Net Profit (As Reported) 617.96

Add: Compensation Expenses under CESOS included

in the Net Profit 0.17

Less: Compensation Expenses under CESOS as

per fair value 0.30

Net Profit (Fair value basis) 617.83

Basic Earning per Share (As Reported) - Rs./Share 55.92

Basic Earning per Share (Fair value basis) - Rs./Share 55.91

Diluted Earning per Share (As Reported) - Rs./Share 55.90

Diluted Earning per Share (Fair value basis) - Rs./Share 55.89

20 Related Party Transactions :

(a) Parties where control exists -
Holding Companies:
Grasim Industries Limited (With effect from 3rd October, 2009)
Samruddhi Swastik Trading and Investments Limited (SSTIL) (Upto 2nd October, 2009)
Subsidiary:
Harish Cement Limited (HCL)
(b) Other Related Parties with whom transactions have taken place during the year :
Fellow Subsidiaries:
Samruddhi Swastik Trading and Investments Limited (SSTIL) (With effect from 3rd October, 2009)
UltraTech Cement Limited (UTCL)
Grasim Bhiwani Textiles Limited (GBTL)
Joint Ventures:
Bhaskarpara Coal Co. Limited
Key Management Personnel:
Shri O.P. Puranmalka, Whole Time Director*
Shri Kamal Rathi, Manager
* Shri O.P. Puranmalka has been appointed as a Director of the Company with effect from 16th February,
2010 to 31st March, 2010 while he was an employee of the Cement Business of Grasim Industries Limited,
which has been demerged into the Company under a Scheme of Arrangement under Sections 391 to 394 of
the Companies Act, 1956. Upon the Scheme becoming effective on 18th May, 2010 he is being considered
as Whole-Time Director.

55
S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)
(c) Nature of Transaction
Rs. in Crores
Particulars Holding Subsidiary Fellow Joint Key Total
Company Subsidiaries Ventures Manag-
ement
HCL UTCL GBTL SSTIL Personnel

1. Sales and Services 0.53 Nil 125.61 0.03 Nil Nil Nil 126.17

2. Purchases of goods /
Payment for other services 0.25 Nil 38.44 Nil 0.05 Nil 0.31 39.05

3. Finance Provided Nil 27.00 Nil Nil Nil Nil Nil 27.00
4. Finance Obtained 1.25 Nil Nil Nil Nil Nil Nil 1.25

5. Repayment against Finance

Obtained 1.25 Nil Nil Nil Nil Nil Nil 1.25

6. Sale of Fixed Assets 0.03 Nil 0.03 Nil Nil Nil Nil 0.06
7. Purchase of Fixed Assets Nil Nil 0.05 Nil Nil Nil Nil 0.05

8. Equity Contribution in cash Nil Nil Nil Nil Nil 3.87 Nil 3.87
9. Outstanding Balances as on
31st March, 2010 :
Loans and Advances 0.09 73.84 0.18 Nil 0.07 Nil Nil 74.18

Creditors 13.09 Nil 4.29 Nil Nil Nil Nil 17.38

21 Retirement Benefits
A Defined Benefit Plans:
(a) Gratuity: The employees’ gratuity fund scheme is managed by Grasim Industries Limited Employee
Gratuity Fund, Trust of Holding Company, Grasim Industries Ltd. The present value of obligation is
determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each
period of service as giving rise to additional unit of employee benefit entitlement and measure each unit
separately to build up final obligation.
The amount recognised in respect of gratuity (funded by the Company) is as under:
Rs. in Crores
(i) Present value of the funded defined benefit obligation at the end of the period 93.46
Fair value of plan assets 92.21
Net Liability / (Assets) 1.25
(ii) The amounts recognized in salary, wages and employee benefits in the
Profit and Loss Account as follows in respect of gratuity :
Current service cost 4.49
Interest on defined benefit obligations 3.91
Expected return on plan assets (3.33)
Net Actuarial (gain) / loss recognised during the period (2.07)
Charge to Profit and Loss Account 3.00
(iii) Actual return on plan assets
Expected return on plan assets 3.33
Actuarial gain / (loss) on plan assets 0.08
Actual return on plan assets 3.41

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)
(iv) Reconciliation of present value of the obligation : Rs. in Crores
Opening defined benefit obligation 88.80
Current service cost 4.49
Interest cost 3.91
Actuarial (gain)/loss (2.00)
Benefits paid (1.74)
Closing defined benefit obligation as on 31st March, 2010 93.46
(v) Reconciliation of fair value of the plan assets :
Opening fair value of the plan assets 88.80
Expected return on plan assets 3.33
Actuarial gain/(loss) 0.08
Contributions by the employer 1.74
Benefits paid (1.74)
Closing fair value of the plan assets 92.21
(vi) Experience Adjustments
Defined benefit obligation 93.46
Plan assets 92.21
Surplus/(Deficit) (1.25)
Experience adjustment on plan liabilities 0.89
Experience adjustment on plan assets 0.08
(vii) Investment details of plan assets
Government of India Securities 25%
Corporate Bonds 16%
Insurer Managed Fund 48%
Others 11%
Total 100%
(viii) (a) The fair value of the Plan Assets includes 8.8% Non-Convertible Debentures
of the Company of the face value of Rs. 1.20 Crores purchased at Rs. 1.19 Crores.
(b) There are no amounts included in the fair value of plan assets for:
- Company’s own financial instrument other than those mentioned above [(viii) (a)]
- Property occupied by or other assets used by the Company
(c) The overall expected rate of return on assets is determined based on the
market prices prevailing on that date, applicable to the period over which the
obligation is to be settled.
(ix) Principal Actuarial Assumptions at the Balance Sheet date
Discount / rate 8.27%
Estimated rate of return on plan assets 7.50%
The estimates of future salary increases are considered
taking into account inflation, seniority promotion and other relevant factors. 8.00%
Mortality Published rates
under LIC (1994-95)
mortality tables
(b) The obligation for compensated absence is recognised in the same manner as gratuity, amounting to
Rs.2.01 Crores for the period ended 31st March, 2010.
B Defined Contribution Plans -
Amount recognized as expense and included in the Schedule 18 - “Contribution to Provident & Other Funds”
- Rs. 11.49 Crores.

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 21 (Contd.)

22 Disclosure of Derivative Instruments

(i) Derivative Instruments as on 31st March, 2010
In Millions
Type of Instrument Type of Currency 31st March, Cross
Exposure 2010 Currency
A. Forward Contracts (for hedging USD 18.62 INR
foreign currency exposures) Import
(Payables) Euro 9.35 USD
CHF 1.07 USD
Euro 2.69 INR
Import Trade USD 3.04 INR
Finance
B. Currency & Interest Rate Swaps (For hedging ECB USD 10.00 INR
of foreign currency and interest rate exposures) JPY 28,642.50 INR
Import Trade JPY 3,905.11 INR
Finance

(ii) Unhedged Foreign Currency Exposure as on 31st March, 2010

In Millions
Type of Exposure Currency 31st March,
2010
Export (Receivables) USD 0.69

Rs. in Crores
23 (a) Provisions made for Mines closure/ restoration :
Balance transferred from Grasim Industries Ltd
as per Scheme of Arrangement 0.53
Add: Provision made during the period 0.19
Less: Utilised during the period —
Closing Balance 0.72
(b) Provision for Cost of Transfer of Assets :
Opening Balance —
Add: Created during the period 131.16
Less: Utilised during the period —
Closing Balance 131.16

24 Additional information required under Part II of Schedule VI to the Companies Act, 1956 is as per Schedule 22.

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 22
ADDITIONAL INFORMATION UNDER PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956
A. CAPACITY AND PRODUCTION

Products Unit Installed Capacity Production #

(Quantity) (Quantity)

2009-10 2009-10

1 Cement Tonne 25650000 9845527

2 Ready Mix Concrete Cu. Meter 5485708 1190941
3 White Cement Tonne 560000 276416
4 Putty Tonne 260000 129762

Note: Licenced capacity not indicated due to abolition of industrial licenses under The Industries (Development and
Regulation) Act, 1951.
The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a
technical matter.
# (i) Excludes Clinker not converted into Cement production.
(ii) The installed capacity is transferred from Grasim Industries Limited pursuant to Scheme of
Arrangement. Production Quantity is for 6 months only, hence is not comparable with the installed
capacity.
B. TURNOVER AND STOCKS (Value Rs. in Crores)

Products Unit Turnover Stock

2009-10 2009-10

Quantity Value Quantity Value

1 Cement Tonne 9828080 3,842.27 239733 55.33
315565*
2 Ready Mix Concrete Cu. Meter 1192228 316.17 - -
3 White Cement Tonne 245359 225.33 27999 16.34
27813*
4 Putty Tonne 125173 263.22 15497 14.66
80*
5 Others 98.71 1.27
4,745.70 87.60

* Inter-Divisional transfers/Captive Consumption

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 22 (Contd.)
C. RAW MATERIALS, STORES, SPARE PARTS AND COMPONENTS (Value Rs. in Crores)

Unit 2009-10
Quantity Value
1 Raw Materials Consumed:
Lime Stone Tonne 12239347 138.00
Slag Tonne 306074 21.62
Clinker Tonne 20298 10.52
1422369*
China Clay Tonne 73692 3.90
Chemicals Tonne 3633 53.97
Gypsum Tonne 437820 55.08
Fly Ash Tonne 1748270 68.74
Laterite, Hematite etc. Tonne 480980 40.00
Sand Tonne 984784 39.15
Aggregates Tonne 1299394 56.98
Others 47.65
535.61
* Consumption of own Production
2 Purchase of Finished Goods:
Cement Tonne 199008 52.86
Ready Mix Concrete Tonne 1287 0.28
53.14

3 Imports at CIF Value:

Raw Materials 60.97
Spare Parts, Components and Coal 125.16
Capital Goods 41.40

4 Total Value of Raw Materials, Stores, Spare Parts and Components consumed:
(Value Rs. in Crores)

Raw Materials Stores, Spare parts,

Components etc.
2009-10 2009-10
Value % Value %

Imported 55.63 10% 37.26 14%

Indigenous 479.98 90% 235.47 86%
535.61 100% 272.73 100%

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S C H E D U L E S F O R M I N G PA R T O F A C C O U N T S

SCHEDULE 22 (Contd.)
Value Rs. in Crores
D. EXPENDITURE IN FOREIGN CURRENCY 2009-10
i) Technical know-how and Services 3.20
ii) Professional and Consultancy Fees 0.28
iii) Interest and Commitment Charges on Foreign Currency Loans/Debentures 0.19
iv) Others 1.54

E. EARNINGS IN FOREIGN EXCHANGE:

i) Export of Goods - On F.O.B basis 10.39
ii) Others 0.04

In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

61
CASH FLOW STATEMENT FOR THE PERIOD FROM 4TH SEPTEMBER, 2009
(DATE OF INCORPORATION) TO 3 1 S T M A R C H, 2 0 1 0

Rs. in Crores
Current year
A. Cash Flow from Operating Activities
a. Net profit before tax and exceptional item 941.99
Adjustment for :
Depreciation 213.12
Interest expenses 87.06
Bad Debts Written Off 0.01
Dividend Income (9.99)
Excess Provisions written back (Net) (18.18)
Employee Compensation Expenses under Employee Stock Option Scheme 0.17
Provision for Mines Restoration 0.19
(Profit) / Loss on sale of Fixed Assets (Net) 0.96
(Profit) / Loss on sale of Current Investments (Net) (0.03)
b. Operating profit before working capital changes 1,215.30
Adjustments for :
Trade and other receivables 66.63
Inventories 23.31
Trade Payables 91.15
c. Cash generated from Operations 1,396.39
Direct Taxes Paid (Net) (186.76)
Net Cash from / (used in) Operating Activities 1,209.63
B. Cash Flow from Investing Activities
Purchase of Fixed Assets (380.06)
Sale of Fixed Assets 3.93
Purchase of Investments (1,234.08)
Investment in Joint Venture (3.87)
Loans & Advances to Subsidiaries (27.00)
Dividend received 9.99
Net Cash from / (used in) Investing Activities (1,631.09)
C. Cash Flow from Financing Activities
Proceeds from Equity 85.00
Proceeds from Borrowings 453.11
Repayments of Borrowings (43.70)
Interest paid (100.67)
Net Cash from / (used in) Financing Activities 393.74
D. Net Increase/(Decrease) in Cash and Cash equivalent (27.72)
Cash and Cash equivalent as on 04.09.09 —
Add : Transferred from Grasim Industries Ltd. as per Scheme of Arrangement 118.67 118.67
Cash and Cash equivalent at end of the year 90.95
(Cash and cash equivalent represent Cash and Bank balances)
Note: 1 Transactions arising out of demerger as per note 5 of Schedule 21 (B) is a non cash transaction and not
considered in above cash flow workings.
2 This being first financial year of the Company since incorporation disclosure of previous year is not applicable.
3 Cash Flow statement has been prepared under the indirect method as set out in AS-3.
4 Purchase of fixed assets includes movement of capital work in progress during the period.
In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

62
ADDITIONAL INFORMATION UNDER PART IV OF
SCHEDULE VI TO THE COMPANIES ACT, 1956

Balance Sheet Abstract and General Business Profile

1. Registration Details
CIN No. U26959GJ2009PLC058011 State Code 0 4
Balance Sheet Date 3 1 - 0 3 - 2 0 1 0
2. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
N I L 8 5 0 0 0 0
Bonus Issue Private Placement
N I L N I L
Share Capital Suspense
4 5 8 4 1 8
3. Position of Mobilisation and Development of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
9 8 0 1 1 2 7 9 9 8 0 1 1 2 7 9
Sources of Funds:
Paid-up Capital Share Capital Suspense
8 5 0 0 0 0 4 5 8 4 1 8
Reserves & Surplus Employee Stock Option
4 4 5 2 5 5 5 2 2 5 1 6 1
Secured Loans Unsecured Loans
1 8 3 5 3 0 9 6 7 0 7 5 1 1 2
Deferred Tax Liability
9 1 8 0 1 0 0
Application of Funds: Net Fixed Assets Investments
6 8 4 6 4 6 2 1 1 2 3 8 6 4 0 1
Net Current Assets Miscellaneous Expenditure
- 3 8 3 5 8 4 N I L
Accumulated Losses
N I L
4. Performance of the Company (Amount in Rs. Thousands)
Turnover Total Expenditure
4 7 4 5 7 0 2 8 3 8 0 3 7 1 6 5
+ - Profit/(Loss) before Tax + - Profit/(Loss) after Tax
9 4 1 9 8 6 3 6 1 7 9 5 6 3
Earnings per Share (Rs.) Dividend Rate (%)
5 5 . 9 2 3 5 %
5. Generic Names of three principal products/services of the Company (As per monetary terms)
a) Item Code No. 2 5 2 3 2 9 - 0 1
Product Description G R E Y P O R T L A N D C E M E N T
b) Item Code No. 2 5 2 3 2 1
Product Description WH I T E C E M E N T

ADESH GUPTA
O.P. PURANMALKA
KAMAL RATHI ASHOK MALU
Manager & Company Secretary Directors

Mumbai
Dated: 18th May, 2010

63
Statement pursuant to Section 212 of the Companies
Act, 1956 relating to Subsidiary Company

Name of the Subsidiary Company Harish Cement Limited

1 Financial year of the Subsidiary ended on 31.03.2010

2 Holding Company’s Interest
i) Equity Shares of Rs.10 each
a) Number of Shares Fully paid 50,000
b) % Share held by Samruddhi Cement Limited 100%

Rs. in Lacs
3 Net aggregate amount of Profit/(Losses) of the Subsidiary, so far as they
concern members of Samruddhi Cement Limited
i) For the Financial Year of Subsidiary
a) Dealt with in the accounts of the Holding Company NIL
b) Not dealt with in the accounts of the Holding Company NIL
ii) For the previous Financial years of the Subsidiary since it became
the holding Company’s Subsidiary
a) Dealt with in the accounts of the Holding Company NIL
b) Not dealt with in the accounts of the Holding Company NIL

4 As the Financial Year of the Subsidiary Company coincide with the

Financial Year of the Holding Company, Section 212(5) of the
Companies Act, 1956, is not applicable. NA
Changes in the interest of the Holding Company between the end
of the Subsidiary’s financial year and 31st March, 2010
Number of shares acquired
Material changes between the end of the Subsidiary’s financial
year and 31st March, 2010
a) Fixed assets (net additions)
b) Investments (Net)
c) Moneys lent by the Subsidiary
d) Moneys borrowed by the Subsidiary company other than
for meeting current liabilities

64
A U D I T O R S ’ R E P O R T ON THE CONSOLIDATED
FINANCIAL STATEMENTS

TO THE BOARD OF DIRECTORS OF SAMRUDDHI CEMENT LIMITED

1. We have audited the attached Consolidated Balance Sheet of SAMRUDDHI CEMENT LIMITED (“the
Company”), its subsidiary and jointly controlled entity (the Company, its subsidiary and jointly controlled
entity constitute “the Group”) as at 31st March, 2010, the Consolidated Profit and Loss Account and the
Consolidated Cash Flow Statement of the Group for the period 4th September, 2009 (date of incorporation)
to 31st March, 2010, both annexed thereto. The Consolidated Financial Statements include jointly
controlled entity accounted in accordance with Accounting Standard 27 (Financial Reporting of Interests in
Joint Ventures) as notified under the Companies (Accounting Standards) Rules, 2006. These financial
statements are the responsibility of the Company’s Management and have been prepared on the basis of
the separate financial statements and other financial information regarding components. Our responsibility
is to express an opinion on these Consolidated Financial Statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those
Standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and the disclosures in the financial statements. An audit also includes
assessing the accounting principles used and the significant estimates made by the Management, as
well as evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
3. We did not audit the financial statements of the jointly controlled entity, whose financial statements
reflect total assets of Rs. 4.39 Crores as at 31st March, 2010, total revenues of Rs. Nil and net cash
outflows amounting to Rs. 3.58 Crores for the period 1st October, 2009 (date of acquisition of the
jointly controlled entity) to 31st March, 2010, as considered in the Consolidated Financial Statements.
These financial statements have been audited by other auditor whose reports have been furnished to us
and our opinion in so far as it relates to the amounts included in respect of this jointly controlled entity
is based solely on the report of the other auditor.
4. We report that the Consolidated Financial Statements have been prepared by the Company in accordance
with the requirements of Accounting Standard 21 (Consolidated Financial Statements) and Accounting
Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under the Companies
(Accounting Standards) Rules, 2006.
5. Based on our audit and on consideration of the separate audit reports on individual financial statements
of the Company, its aforesaid subsidiary and jointly controlled entity and to the best of our information
and according to the explanations given to us, in our opinion, the Consolidated Financial Statements
give a true and fair view in conformity with the accounting principles generally accepted in India:
(i) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at
31st March, 2010;
(ii) in the case of the Consolidated Profit and Loss Account, of the profit of the Group for the period
4th September, 2009 (date of incorporation) to 31st March, 2010 and
(iii) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the period
4th September, 2009 (date of incorporation) to 31st March, 2010.

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO.

Chartered Accountants Chartered Accountants
(Registration No. 117364W) (Registration No. 104768W)

B. P. Shroff Atul Desai

Partner Partner
Membership No.: 34382 Membership No.: 30850
Mumbai
Dated: 18th May, 2010

65
C O N S O L I D AT E D B A L A N C E S H E E T A S AT 3 1 S T
MARCH, 2010

Schedules Rs. in Crores

SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 85.00
Share Capital Suspense [Note 4(b), Sch.21 (B)] 1B 45.84
Employee Stock Options Outstanding 1C 2.52
Reserves and Surplus 2 4,452.52
4,585.88
Loan Funds
Secured Loans 3 1,835.31
Unsecured Loans 4 707.51
2,542.82
Deferred Tax Liabilities (Net) [Note 11, Sch. 21 (B)] 918.01
TOTAL FUNDS EMPLOYED 8,046.71

APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 9,086.24
Less: Depreciation/Amortisation 2,585.32
Net Block 6,500.92
Capital Work-in-Progress 423.64
6,924.56
Goodwill 0.05
Investments 6 1,234.11
Current Assets, Loans and Advances
Inventories 7 772.31
Sundry Debtors 8 241.52
Cash and Bank Balances 9 91.32
Loans and Advances 10 541.34
1,646.49
Less:
Current Liabilities and Provisions
Liabilities 11 1,509.19
Provisions 12 249.31
1,758.50
Net Current Assets (112.01)
TOTAL FUNDS UTILISED 8,046.71
Significant Accounting Policies and
Notes on Accounts 21
Schedules referred to above form an integral part of the Balance Sheet

In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

66
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE PERIOD FROM
4TH SEPTEMBER, 2009 (DATE OF INCORPORATION) TO 31ST MARCH, 2010

Schedules Rs. in Crores

INCOME
Gross Sales 4,745.70
Less: Excise Duty 455.07
Net Sales 4,290.63
Interest and Dividend Income 13 10.88
Other Income 14 39.07
Increase in Stocks 15 48.39
4,388.97
EXPENDITURE
Raw Materials Consumed 16 535.61
Manufacturing Expenses 17 1,245.18
Purchases of Finished Goods 53.14
Payments to and Provisions for Employees 18 198.62
Selling, Distribution, Administration and Other Expenses 19 1,121.01
Interest 20 87.06
Depreciation and Amortisation [Note 1, Sch. 5] 213.12
3,453.74
Less: Captive Consumption of Cement
(Net of Excise Rs. 6.13 Crores) 6.72
3,447.02
Profit before Tax Expenses 941.95
Provision for Current Tax
(Including provison for Wealth Tax Rs. 0.79 Crores) 179.26
Deferred Tax 144.77

Profit after Tax and available for Appropriation 617.92

Appropriations:
Debenture Redemption Reserve 12.50
Proposed Dividend 45.79
Corporate Dividend Tax 7.61
General Reserve 200.00
Balance carried to Balance Sheet 352.02
617.92

Basic earnings per share (Rs.) 55.92

Diluted earnings per share (Rs.) 55.90
Significant Accounting Policies and
Notes on Accounts 21
Schedules referred to above form an integral part of the Profit and Loss Account
In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

67
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 1 A Rs. in Crores

SHARE CAPITAL
Authorised
202,000,000 Equity Shares of Rs. 5 each 101.00
(Effective 18th May, 2010 stands increased to 270,000,000 Equity Shares of Rs. 5 each,
Rs. 135.00 Crores pursuant to Scheme of Arrangement)
Issued, Subscribed and Paid up
170,000,000 Equity Shares of Rs. 5 each fully paid 85.00
All of the above, Equity Shares of Rs. 5 each fully paid up aggregating
100% of the Company’s paid up Share Capital are held by
Grasim Industries Ltd., the Holding Company.

SCHEDULE 1 B
SHARE CAPITAL SUSPENSE
Share Capital Suspense 45.84
91,683,571 Equity Shares of Rs. 5 each, fully paid, to be issued without payment being
received in cash pursuant to Scheme of Arrangement. Refer Note 4(b) of Schedule 21(B).
(Excluding issue of 14,906 Equity Shares kept in abeyance against shares of Grasim
Industries Limited under Share Capital Suspense)
45.84

SCHEDULE 1 C
EMPLOYEE STOCK OPTIONS OUTSTANDING
Employee Stock Options Outstanding 2.86
Less : Deferred Employees Compensation Expenses 0.34
2.52
Outstanding Employee Stock Options exercisable into 185,654
Equity Shares of Rs. 5 each fully paid up.

SCHEDULE 2
RESERVES AND SURPLUS
Reserves transferred Addition Deduction/ Balance as at
from Grasim Industries during the Adjustments 31st March, 2010
Ltd. as per Scheme of period during the period
Arrangement *

1. Capital Reserve
- Capital Subsidy 0.30 - - 0.30
2. Debenture Redemption Reserve 27.50 12.50 - 40.00
3. General Reserve # 3,862.80 200.00 2.60 4,060.20
4. Surplus as per Profit and Loss Account - 352.02 - 352.02
3,890.60 564.52 2.60 4,452.52

* Refer note 4 of Schedule 21 (B)

# Opening General Reserve :
Excess of assets over liabilites transferred from Grasim Industries Limited as per Scheme of Arrangement 4,088.26
Less : - Share Capital Suspense (Refer Note 4(b) of Schedule 21 (B)) (45.84)
- Deferred Tax Liability recognised on transferred assets towards accumulated depreciation (92.24)
- Provision for costs in relation to transfer of assets pursuant to Scheme of Arrangement (Net of Tax) (87.38)
3,862.80

# Deduction/Adjustments of Rs. 2.60 Crores from General Reserve represents transfer to Employee Stock Option
Outstanding against the Stock Option to be granted against ESOS 2006 of Grasim Industries Limited in terms of the
Scheme of Arrangement.

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

Rs. in Crores
SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures 500.00
Loans and advances from Banks:
- Working Capital Borrowings from Banks 74.10
- Rupee Term Loans 450.00
- Foreign Currency Loans 747.71
- Buyer’s Credit 60.40
Deferred Sales Tax Loan 3.10
1,835.31

SCHEDULE 4
UNSECURED LOANS
Short Term Loans and Advances
From Banks:
Buyer’s Import Credit 13.46
Other Loans and Advances:
From Banks:
Foreign Currency Loans 518.76
Buyer’s Import Credit 82.16
From Others:
Deferred Sales Tax Loan 93.13
707.51

SCHEDULE 5
FIXED ASSETS Rs. in Crores
PARTICULARS GROSS BLOCK DEPRECIATION/AMORTISATION NET BLOCK

Transferred Additions Deductions As at Transferred For the Deductions Upto As at

from Grasim 31.03.2010 from Grasim period 31.03.2010 31.03.2010
Industries Ltd Industries Ltd
on 01.10.09 on 01.10.09
as per the Scheme as per the Scheme
of Arrangement of Arrangement

1 Freehold Land 379.05 161.72 - 540.77 - - - - 540.77

2 Leasehold Land 90.00 8.33 - 98.33 15.81 2.67 - 18.48 79.85
3 Buildings 486.25 47.55 0.35 533.45 86.87 7.18 0.14 93.91 439.54
4 Railway Sidings 103.03 12.43 - 115.46 43.71 2.43 - 46.14 69.32
5 Plant and Machinery 7,110.16 522.57 7.46 7,625.27 2,122.35 190.32 3.38 2,309.29 5,315.98
6 Furniture, Fittings and 130.08 6.21 8.36 127.93 94.37 6.11 7.94 92.54 35.39
Office Equipment
7 Vehicles 17.43 2.20 0.68 18.95 6.67 1.29 0.50 7.46 11.49
8 Intangible Assets
- Computer Software 25.66 1.15 0.73 26.08 15.03 3.20 0.73 17.50 8.58
TOTAL 8,341.66 762.16 17.58 9,086.24 2,384.81 213.20 12.69 2,585.32 6,500.92
Capital work-in-progress 423.64
(including Advances and
Pre-operative Expenses)
6,924.56
Notes:
Rs. in Crores
Depreciation and Amortisation for the year 213.20
Less: Transferred to pre-operative expenses (Towards use of assets during pre-operative period) 0.08
213.12

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

Rs. in Crores
SCHEDULE 6
INVESTMENTS
CURRENT (At Cost or Fair Value, whichever is less)
Unquoted
1,168,732,446 Units of Debt Schemes of various Mutual Funds 1,234.11
1,234.11

Aggregate Book Value of : Unquoted Investments 1,234.11

Note : No. of Units of Various Mutual Funds - Purchased and Redeemed during the year 3,368,797,614

SCHEDULE 7
INVENTORIES
Stores and Spare parts, Packing Materials and Fuel 421.00
Raw Materials 72.64
Finished Goods 87.60
Process Stock 185.98
Waste/Scrap 5.09
772.31

SCHEDULE 8
SUNDRY DEBTORS *
(Unsecured, considered good unless otherwise stated)
Due for period Exceeding Six Months 10.27
(Net of doubtful, fully provided Rs. 1.07 Crores)
Others 231.25
241.52

* Includes amount in respect of which the Company holds deposits. 52.48

SCHEDULE 9
CASH AND BANK BALANCES
Cash balance on hand 0.57
Bank Balances with Scheduled Banks:
Current Accounts (including cheques under collection) 90.48
Deposit Accounts # 0.27
90.75
91.32

Note :
# (a) Rs. 0.04 Crore lodged as security with Government Department.
(b) Rs. 0.01 Crore as Interest accrued.

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

Rs. in Crores
SCHEDULE 10
LOANS AND ADVANCES
(Unsecured, considered good except otherwise stated)
Deposits and Balances with Government and other Authorities (including accrued interest) 82.23
Other Deposits (Net of Doubtful, fully provided Rs. 3.32 Crores) 65.61
Advances to Holding Company 0.09
Advances recoverable in cash or in kind or for value to be received 376.96
Advance Income Tax (Net of Provision for Taxation) 16.45
541.34
SCHEDULE 11
CURRENT LIABILITIES
Sundry Creditors :
(a) Micro, Small & Medium Enterprises -
(b) Others 860.87
860.87
Security and Other Deposits 240.77
Other Liabilities 354.85
Bank Overdraft 2.56
Interest accrued but not due on Debentures and Loans 50.14
1,509.19
SCHEDULE 12
PROVISIONS
Provision for Employee benfits 64.03
Provision for Mines Restoration Expenditure 0.72
Provison for Assets Transfer Cost on demerger [Refer Note 4(c) of Schedule 21(B)] 131.16
Proposed Dividend 45.79
Corporate Dividend Tax 7.61
249.31
SCHEDULE 13
INTEREST AND DIVIDEND INCOME
i) On Investments
Dividends on Current Investments 9.99
ii) Others: Interest (Gross) on:
Bank and Other Accounts (Tax deducted at source Rs. 0.35 Crore) 0.89
10.88
SCHEDULE 14
OTHER INCOME
Export Incentives 0.46
Rent Received (Tax deducted at source Rs. 0.02 Crore) 0.36
Lease Rent (Tax deducted at source Rs. 0.17 Crore) 1.63
Insurance Claims 1.91
Profit on Sale of Current Investments (Net) 0.03
Excess Provisions written back (Net) 18.18
Scrap/Waste Sales (Net of Excise Duty) 8.84
Miscellaneous Receipts 7.66
39.07

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

Rs. in Crores
SCHEDULE 15
INCREASE / (DECREASE) IN STOCKS
Closing Stock
Finished Goods 87.60
Process Stock 185.98
Waste/Scrap 5.09
278.67
Stock transferred from Grasim Industries Ltd. as per Scheme of Arrangement :
Finished Goods 101.10
Process Stock 121.94
Waste/Scrap 5.28
228.32
Add: (Increase) / Decrease in Excise Duty on Stocks (0.26)
Stock Transfer from pre-operative expenses (1.70)
48.39

SCHEDULE 16
RAW MATERIALS CONSUMED
Stock transferred from Grasim Industries Ltd. as per Scheme of Arrangement 74.64
Purchases and Incidental Expenses (includes cost of Lime Stone raised) 533.61
608.25
Less : Closing Stock 72.64
535.61

SCHEDULE 17
MANUFACTURING EXPENSES
Consumption of Stores, Spare Parts and Components, Packing Materials and Incidental Expenses 248.03
Power and Fuel 831.57
Processing Charges 8.24
Freight and handling expense on Clinker transfer 109.37
Repairs to Buildings 8.80
Repairs to Machinery (excluding Spare Parts and Components) 30.74
Repairs to Other Assets 8.43
1,245.18

72
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

Rs. in Crores
SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 176.70
Contribution to Provident and Other Funds 12.05
Welfare Expenses 9.70
Employee compensation expenses under Employee Stock Option Scheme 0.17
(Refer Note 19 of Schedule 21 (B))
198.62

SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission to Selling Agents 39.69
Brokerage and Discount 56.43
Freight and Handling Expenses 735.02
Advertisements and Sales Promotion 147.95
Insurance 5.34
Rent (including Lease Rent) 13.92
Rates and Taxes 36.69
Stationery, Printing, Postage and Telephone Expenses 7.14
Travelling and Conveyance 15.82
Legal and Professional charges 20.31
Bad debts written off 0.01
Donations 1.50
Exchange Rate Difference (Net) 6.74
Loss on Sale and/or discard of Fixed Assets (Net) 0.96
Miscellaneous Expenses (includes diminution in value of current investment Rs. 0.07 Crores) 33.49
1,121.01

SCHEDULE 20
INTEREST
On Fixed Period Loans and Debentures 86.64
Other Interest 10.93
97.57
Less: Interest Capitalized 10.51
87.06

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
(A) Significant Accounting Policies:
1. Accounting Concepts:
The financial statements are prepared and presented in accordance with the Generally Accepted Accounting
Principles (GAAP) in India and comply in all material aspects with the Accounting Standards (AS) notified
under the Companies (Accounting Standard) Rules, 2006 (as amended), other pronouncements of the
Institute of Chartered Accountants of India, the relevant provisions of the Companies Act, 1956 and guidelines
issued by Securities and Exchange Board of India.
2. Use of Estimates:
The preparation of financial statements require estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of financial statements and reported amount of revenues and
expenses during the reporting period. Difference between the actual results and estimates are recognized in
the period in which the results are known/materialized.
3. Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation/amortisation. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working condition for its intended use.
4. Treatment of expenditure during construction period:
Expenditure during construction period is included under Capital Work-in-Progress and the same is allocated
to the respective fixed assets on the completion of its construction.
5. Foreign Currency Transactions:
Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction.
Monetary assets and liabilities in foreign currency existing at Balance Sheet date are translated at year-end
exchange rates. Exchange differences, including premium or discount on forward exchange contracts, arising
till the commissioning of fixed assets, relating to borrowed funds and liabilities in foreign currency for
acquisition of the fixed assets are adjusted to the cost of fixed assets. Other premium or discount on forward
exchange contracts is amortised as expense or income over the life of the contract. All other exchange
differences are recognised in Profit and Loss Account.
6. Financial Derivatives:
Financial Derivative instruments such as Swaps and Options, are used to hedge risks associated with
fluctuations in foreign exchange and interest rates. The derivative contracts are closely linked with the
underlying transactions and are intended to be held to maturity. The underlying transactions are recorded as
per terms of the financial derivative contracts.
7. Investments:
Investments are classified as long term based on management intention at the time of purchase, all other
investments are classified as current investment. Current investments are stated at lower of cost and fair value.
Long term investments are stated at cost after deducting provisions made, if any, for permanent diminution
(i.e. other than temporary diminution) in value.
8. Inventories:
Inventories except scrap/waste are valued at the lower of cost and net realisable value. Waste/scrap is valued
at net realisable value. The cost is computed on weighted average basis.
Cost of Finished goods and process stock include cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
Obsolete, defective, slow moving and unserviceable inventories are duly provided for.
9. Depreciation/Amortisation:
Depreciation/Amortisation charge is provided for on the following basis:
(a) On fixed assets - on straight line method applying the rates/useful life specified in Schedule XIV of the
Companies Act, 1956, except as stated hereunder :
Asset Estimated useful life
Leasehold Land over the period of lease
Capital expenditure on assets not owned 5 years
Motor Cars 5 years
Computer Software 3 years
Computer and Other Electronic Office Equipments 4 years
Furniture and Fixtures and Electrical Fittings 7 years
Mobile Phone 3 years

74
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
Continuous process plants as defined in Schedule XIV have been classified on technical assessment and
depreciation provided accordingly.
(b) In respect of fixed assets added/disposed off during the year on pro-rata basis with reference to the
month of addition/deduction except in case of new projects where it is provided on the basis of days of
use.
10. Impairment of Assets:
Carrying amount of assets is reviewed at Balance Sheet date, if there is indication of impairment, based on
the internal and external factors. The assets are treated as impaired when the carrying amount of asset
exceeds its recoverable amount. An impairment loss, if any, is charged to Profit and Loss Account in the year
in which the asset is identified as impaired. Reversal of impairment loss recognised in prior years, is recorded
when there is an indication that impairment loss recognised for the asset no longer exists or has decreased.
11. Revenue Recognition:
(a) Sales revenue is recognised on transfer of the significant risks and rewards of ownership of the goods to
the buyer and stated at net of sales tax, VAT, trade discounts and rebates but includes excise duty.
(b) Dividend income on investments is accounted for when the right to receive the payment is established.
(c) Interest income is recognised on time proportion basis.
(d) Certain claims of the Company viz. export incentives, insurance, railway etc. in respect of which quantum
of accruals cannot be ascertained with reasonable certainity, are accounted on acceptance basis.
12. Employee Benefits:
(a) Short term employee benefits and contribution to defined contribution plans are recognised as an
expense on accrual at the undiscounted amount in the Profit and Loss Account.
(b) The contribution as specified under the law are paid to the provident fund set up as irrevocable trust by
the Company or to Regional Provident Fund Commissioner. The Company is generally liable for annual
contribution and any shortfall in the fund assets based on the government specified minimum rates of
return and recognises such contributions and shortfall, if any, as an expense in the year incurred.
(c) Post employment and other long term employee benefits are recognised as an expense, at the present
value of the amounts payable determined using actuarial valuation techniques, in the Profit and Loss
account for the year. Actuarial gains and losses in respect of post employment and other long term
benefits are charged to the Profit and Loss Account.
(d) Employee Stock Option Scheme: The intrinsic value of options granted under Employee Stock Option
Scheme is recognised as deferred compensation cost and amortised over the vesting period.
13. Government Grants:
Government Grants are recognised when there is reasonable assurance that the same will be received.
Capital grants relating to specific assets are reduced from the gross value of the fixed assets and capital
grants for Project Capital Subsidy are credited to Capital Reserve. Revenue grants are recognised in the Profit
and Loss Account or deducted from related expenses.
14. Borrowing Cost:
Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the
acquisition/construction of qualifying fixed assets are capitalised upto the date when such fixed assets are
ready for their intended use and all other borrowing costs are charged to Profit and Loss Account.
15. Provision for Current and Deferred Tax:
Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period
in accordance with the provisions of Income Tax Act, 1961. Deferred Tax resulting from timing difference
between book and taxable profit for the year is accounted for using the tax rates and laws that have been
enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and
carried forward only to the extent there is a reasonable certainty that the deferred tax assets will be realised in
future.
16. Mines Restoration Expenditure:
The Company provides for the expenditure to restore the mines based on technical estimates by internal/
external specialists. The total estimate of restoration expenditure is apportioned over the estimated quantities
of total mineral reserves and provision is made based on the minerals mined during the year.
17. Operating Leases:
Leases where significant portion of risk and reward of ownership are retained by the Lessor are classified as
Operating Leases and lease rentals thereon are charged to Profit and Loss Account.

75
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
18. Provisions/Contingencies:
A provision is recognised when there is a present obligation as a result of past event and it is probable that
an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be
made. Provisions are determined based on best estimate of the amount required to settle the obligation at the
Balance Sheet date.
Contingent Liabilities are not recognised but are disclosed and Contingent Assets are neither recognised nor
disclosed, in the financial statements.
19. Research and Development expenditure:
Expenditure incurred during research phase is charged to revenue when no intangible asset arises from such
research. Assets procured for research and development activities are generally capitalised.
(B) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1 Principles of Consolidation:
(a) The Consolidated Financial Statements (CFS) are prepared in accordance with Accounting Standard on
“Consolidated Financial Statements” (AS - 21) and “Financial Reporting of Interests in Joint Ventures” (AS
- 27) issued by the Institute of Chartered Accountants of India.
The CFS are prepared using uniform significant accounting policies, in accordance with the generally
accepted accounting policies.
(b) The CFS comprise the financial statements of Samruddhi Cement Limited, its subsidiary and its interest in
Joint Venture as on 31st March, 2010, which are as under:
(I) Subsidiary:
Name of the Company Country of % Shareholding &
Incorporation Voting Power
Harish Cement Ltd. (HCL) India 100.00
(II) Joint Venture (JV):
Name of the Company Status Country of Ownership Financial
Incorporation Interest % Statements as on
Bhaskarpara Coal Company Ltd. Audited India 47.37 31st March, 2010
(c) The effect of intra group transactions between Samruddhi Cement Limited, subsidiary and joint venture
are eliminated in consolidation.
2 The Company, incorporated on 4th September, 2009, has the main object of carrying on the business of
manufacture and sale of cement and allied products. Accordingly, the current financial year is for the period
from 4th September, 2009 to 31st March 2010. This being the first financial year of the Company since
incorporation, disclosure of previous year figures is not applicable.
3 The Company was incorporated by Samruddhi Swastik Trading and Investments Limited (SSTIL) with an
Authorised Share Capital of Rs. 101 Crores divided into 20,20,00,000 Equity Shares of Face value Rs. 5
each. Grasim Industries Limited (GIL) acquired the entire holding from SSTIL at par on 3rd October, 2009
and the Company became a Subsidiary of GIL.
4 (a) Pursuant to a Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956, GIL has
demerged its Cement Business comprising inter alia of Grey Cement, White Cement and Ready Mix
Concrete and vested into the Company with effect from 1st October, 2009 on a going concern basis.
The Scheme has been approved inter alia by the Shareholders of GIL and Hon’ble High Courts of
Madhya Pradesh, Indore Bench and Gujarat and has become effective on 18th May, 2010.
(b) In terms of the Scheme, the Company will issue and allot its shares to the shareholders of GIL in the ratio
of one equity share of face value of Rs. 5 each fully paid up in the Company for every one equity share
of face value of Rs. 10 each fully paid held by the shareholders of GIL on 28th May, 2010, the record
date fixed for the purpose. Pending allotment of these shares, the amount of Rs. 45,84,17,855 is
disclosed as ‘Share Capital Suspense’. Upon allotment of equity shares to the shareholders of GIL, the
shareholding of GIL in the Company will reduce to 64.96%.

76
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
(c) Transfer and vesting of assets and liabilities of the Cement Business of GIL to the Company has been
effected at the values appearing in the books of accounts of GIL as at 30th September, 2009 and recorded
as such in the book of accounts of the Company. Excess of assets over liabilities (net of Debenture
Redemption Reserve of Rs. 27.50 Crores and Capital Subsidy Reserve of Rs. 0.30 Crores transferred as
liabilities pertaining to Cement Business) so recorded, amounting to Rs. 4,088.26 Crores is recognized in
these financial statements, and as stipulated in the scheme, has been credited to ‘General Reserve’. Assets
transfer cost on demerger will be borne by the Company pursuant to Scheme of Arrangement.
(d) (i) As the Scheme became effective on 18th May, 2010, though the Assets and the Liabilities as on 31st
March, 2010 arising out of the transferred business are vested in the Company, titles of the same
are still not transferred in the name of the Company and being held in the name of GIL.
(ii) Creation of securities against the secured loans as per Schedule 3 of Secured Loans is not yet
effected.
(e) In terms of the Scheme, the Company will formulate a Compensatory Employee Stock Option Scheme
(CESOS) under which stock option holders of GIL will be entitled to one employee stock option of the
Company for every employee stock option held in GIL.
5 Pursuant to a separate Scheme of Arrangement/Amalgamation under sections 391 to 394 of the Companies
Act, 1956, the Company is proposed to be amalgamated with Ultratech Cement Limited (Ultratech), a
subsidiary of GIL w.e.f 1st July, 2010. The Scheme has been approved by the Shareholders of the Company
and also by Shareholders of GIL and Ultratech. The Scheme will be effective upon approval of the same by
the Hon’ble High Courts of Bombay and Gujarat and such other actions as may be required to be taken in
terms of the Scheme. Upon effectiveness of the Scheme, the shareholders of the Company will receive 4 (four)
equity shares of Ultratech of the face value of Rs. 10 each, credited as fully paid up, for every 7 (seven) fully
paid up shares of the Company of face value of Rs. 5 each held on the record date to be fixed for the
purpose. No effect of the Scheme is required or possible at this stage.
6 Goodwill arising out of consolidation of financial statements of Subsidiaries and Joint Ventures is not
amortised. However, the same is tested for impairment at each Balance Sheet Date.
7 The Company’s proportionate share in assets, liabilities, income and expenses of its Joint Venture Company
included in these consolidated financial statements are given below :
Rs. in Crores
(a) BALANCE SHEET Current Year
SOURCES OF FUNDS
Equity Share Capital 4.43
Loan Funds -
Deferred Tax Liabilities -
TOTAL 4.43
APPLICATION OF FUNDS
Capital Work-in-Progress 4.05
Cash and Bank Balances 0.34
Profit and Loss Debit Balance 0.04
TOTAL 4.43

(b) PROFIT AND LOSS ACCOUNT

Income -
Expenditure 0.04
Profit before Tax (0.04)
Tax Expenses -
Profit after Tax (0.04)

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
8 The Ministry of Textiles, vide its orders dated 30th June, 1997 and 1st July, 1999 has deleted cement from the
list of commodities to be packed in Jute bags under the Jute Packaging (Compulsory Use in Packing
Commodities) Act, 1987. In view of this, the Company does not expect any liability for non-dispatch of
cement in Jute bags in respect of earlier years, carried on by its predecessors.
9 (a) Contingent Liabilities not provided for in respect of : Rs. in Crores
Claims not acknowledged as debts 373.28
(Includes demands in respect of Royalty on Limestone,
Excise Duty, Entry Tax, Cenvat Credit, etc.)
(b) Estimated amount of Contracts remaining to be executed on
capital account and not provided (Net of advance paid Rs. 84.18 Crores) 310.32
10 Earnings per share:
Net profit for the period attributable to equity shareholders Rs. in Crores 617.92
(i) Weighted average number of equity shares outstanding Numbers 110,505,024
(ii) Weighted average Potential Equity Shares on exercise of option Numbers 35,260
(i) Basic earnings per share (face value of Rs. 5 each) Rs. 55.92
(ii) Diluted earnings per share (face value of Rs. 5 each) Rs. 55.90
11 Deferred Tax Assets and Liabilities as on 31st March, 2010 are as under:
Rs. in Crores
Deferred Tax Assets:
Accrued Expenses deductible on payment basis 59.32
Expenses allowable in installments in Income Tax 35.58
Others 0.90
95.80
Deferred Tax Liability :
Accumulated Depreciation 1,013.81
Net Deferred Tax Liability 918.01
12 The Company has one business segment “Cement” as its primary segment. The Company has secondary
segment (geographical segment) which being insignificant is not disclosed.
13 Related Party Transactions :
(a) Parties where control exists -
Holding Companies:
Grasim Industries Limited (With effect from 3rd October, 2009)
Samruddhi Swastik Trading and Investments Limited (SSTIL) (Upto 2nd October, 2009)
(b) Other Related Parties with whom transactions have taken place during the year :
Fellow Subsidiaries:
Samruddhi Swastik Trading and Investments Limited (With effect from 3rd October, 2009)
UltraTech Cement Limited (UTCL)
Grasim Bhiwani Textiles Limited (GBTL)
Joint Ventures:
Bhaskarpara Coal Co. Limited
Key Management Personnel:
Shri O.P. Puranmalka, Whole Time Director*
Shri Kamal Rathi, Manager

78
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
* Shri O.P.Puranmalka has been appointed as a Director of the Company with effect from 16th February,
2010 to 31st March, 2010 while he was an employee of the Cement Business of Grasim Industries
Limited, which has been demerged into the Company under a Scheme of Arrangement under Sections
391 to 394 of the Companies Act, 1956. Upon the Scheme becoming effective on 18th May, 2010 he
is being considered as Whole-Time Director.
(c) Nature of Transaction
Rs. in Crores
Particulars Holding Fellow Subsidiaries Joint Key Total
Company Ventures Manage-
ment
UTCL GBTL SSTIL # Personnel
1. Sales and Services 0.53 125.61 0.03 Nil Nil Nil 126.17
2. Purchases of goods /
Payment for other services 0.25 38.44 Nil 0.05 Nil 0.31 39.05
3. Finance Obtained 1.25 Nil Nil Nil Nil Nil 1.25
4. Repayment against
Finance Obtained 1.25 Nil Nil Nil Nil Nil 1.25
5. Sale of Fixed Assets 0.03 0.03 Nil Nil Nil Nil 0.06
6. Purchase of Fixed Assets Nil 0.05 Nil Nil Nil Nil 0.05
7. Equity Contribution in cash Nil Nil Nil Nil 3.87 Nil 3.87
8. Outstanding Balances
as on 31st March :
Loans and Advances 0.09 0.18 Nil 0.07 Nil Nil 0.34
Creditors 13.09 4.29 Nil Nil Nil Nil 17.38
# Transaction with Joint Venture has been disclosed at full value.
14 Retirement Benefits
A Defined Benefit Plans:
(a) Gratuity: The employees’ gratuity fund scheme is managed by Grasim Industries Limited Employee
Gratuity Fund, Trust of Holding Company, Grasim Industried Ltd. The present value of obligation is
determined based on actuarial valuation using the Projected Unit Credit Method, which recognises
each period of service as giving rise to additional unit of employee benefit entitlement and measure
each unit separately to build up final obligation.
The amount recognised in respect of gratuity (funded by the Company) is as under:
Rs. in Crores
(i) Present value of the funded defined benefit obligation at the end of the period 93.46
Fair value of plan assets 92.21
Net Liability/(Assets) 1.25
(ii) The amounts recognized in salary, wages and employee benefits
in the Profit and Loss Account as follows in respect of gratuity :
Current service cost 4.49
Interest on defined benefit obligations 3.91
Expected return on plan assets (3.33)
Net Actuarial (gain)/loss recognised during the period (2.07)
Charge to Profit and Loss Account 3.00
(iii) Actual return on plan assets
Expected return on plan assets 3.33
Actuarial gain/(loss) on plan assets 0.08
Actual return on plan assets 3.41

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SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
Rs. in Crores
(iv) Reconciliation of present value of the obligation:
Opening defined benefit obligation 88.80
Current service cost 4.49
Interest cost 3.91
Actuarial (gain)/loss (2.00)
Benefits paid (1.74)
Closing defined benefit obligation as on 31st March, 2010 93.46
(v) Reconciliation of fair value of the plan assets:
Opening fair value of the plan assets 88.80
Expected return on plan assets 3.33
Actuarial gain/(loss) 0.08
Contributions by the employer 1.74
Benefits paid (1.74)
Closing fair value of the plan assets 92.21
(vi) Experience Adjustments
Defined benefit obligation 93.46
Plan assets 92.21
Surplus/(Deficit) (1.25)
Experience adjustment on plan liabilities 0.89
Experience adjustment on plan assets 0.08
(vii) Investment details of plan assets
Government of India Securities 25%
Corporate Bonds 16%
Insurer Managed Fund 48%
Others 11%
Total 100%
(viii) (a) The fair value of the Plan Assets includes 8.8% Non-Convertible Debentures
of the Company of the face value of Rs. 1.20 Crores purchased at Rs. 1.19
Crores.
(b) There are no amounts included in the fair value of plan assets for:
(i) Company’s own financial instrument other than those mentioned above
[(viii) (a)]
(ii) Property occupied by or other assets used by the Company
(c) The overall expected rate of return on assets is determined based on the
market prices prevailing on that date, applicable to the period over which
the obligation is to be settled.
(ix) Principal Actuarial Assumptions at the Balance Sheet date
Discount / rate 8.27%
Estimated rate of return on plan assets 7.50%
The estimates of future salary increases are considered taking into
account inflation, seniority promotion and other relevant factors. 8.00%
Mortality Published rates
under LIC (1994-95)
mortality tables

80
SCHEDULES FORMING PART OF CONSOLIDATED
FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
(b) The obligation for compensated absence is recognised in the same manner as gratuity, amounting
to Rs. 2.01 Crores for the period ended 31st March, 2010.
B Defined Contribution Plans -
Amount recognized as expense and included in the Schedule 18 - “Contribution to Provident & Other
Funds” - Rs. 11.49 Crores
15 Disclosure of Derivative Instruments
(i) Derivative Instruments as on 31st March, 2010
(In Millions)
Type of Instrument Type of Exposure Currency 31st March, 2010 Cross Currency
A. Forward Contracts USD 18.62 INR
(For hedging of foreign
currency exposures)
Import (Payables) Euro 9.35 USD
CHF 1.07 USD
Euro 2.69 INR
Import Trade
Finance USD 3.04 INR
B. Currency & Interest
Rate Swaps
(For hedging of foreign
currency and interest ECB USD 10.00 INR
rate exposures) JPY 28,642.50 INR
Import Trade
Finance JPY 3,905.11 INR
(ii) Unhedged Foreign Currency Exposure as on 31st March, 2010
(In Millions)
Type of Exposure Currency 31st March, 2010
Export (Receivables) USD 0.69
Rs. in Crores
16 (a) Provisions made for Mines closure/ restoration:
Balance transferred from Grasim Industries Ltd as per Scheme of Arrangement 0.53
Add: Provision made during the period 0.19
Less: Utilised during the period -
Closing Balance 0.72
(b) Provision for Cost of Transfer of Assets:
Opening Balance -
Add: Created during the period 131.16
Less: Utilised during the period -
Closing Balance 131.16
17 Revenue expenditure on Research and Development included in different heads of expenses in the Profit and
Loss Account is Rs. 1.99 Crores.

ADESH GUPTA
O.P. PURANMALKA
KAMAL RATHI ASHOK MALU
Manager & Company Secretary Directors
Mumbai
Dated: 18th May, 2010

81
CONSOLIDATED CASH FLOW STATEMENT FOR THE PERIOD FROM
4TH SEPTEMBER, 2009 (DATE OF INCORPORATION) TO 31ST MARCH, 2010

Rs. in Crores
Current year
A. Cash Flow from Operating Activities
a. Net profit before tax and exceptional item 941.95
Adjustment for :
Prior Period adjustment written off 0.04
Depreciation 213.12
Interest expenses 87.06
Bad Debts Written Off 0.01
Dividend Income (9.99)
Excess Provisions written back (Net) (18.18)
Employee Compensation Expenses under Employee Stock Option Scheme 0.17
Provision for Mines Restoration 0.19
(Profit)/Loss on sale of Fixed Assets (Net) 0.96
(Profit)/Loss on sale of Current Investments (Net) (0.03)
b. Operating profit before working capital changes 1,215.30
Adjustments for :
Trade and other receivables 66.45
Inventories 23.31
Trade Payables 94.86
c. Cash generated from Operations 1,399.92
Direct Taxes Paid (Net) (186.76)
Net Cash from/(used in) Operating Activities 1,213.16
B. Cash Flow from Investing Activities
Purchase of fixed assets (414.75)
Sale of fixed assets 3.93
Purchase of Investments (1,234.08)
Dividend received 9.99
Net Cash from/(used in) Investing Activities (1,634.91)
C. Cash Flow from Financing Activities
Proceeds from Equity 85.00
Proceeds from borrowings 453.11
Repayments of borrowings (43.70)
Interest paid (100.67)
Net Cash from/(used in) Financing Activities 393.74
D. Net Increase/(Decrease) in Cash and Cash equivalent (28.01)
Cash and Cash equivalent as on 04.09.09 -
Add : Transferred as per Scheme of Arrangement 119.33 119.33
Cash and Cash equivalent at end of the year 91.32
(Cash and cash equivalent represent Cash and Bank balances)
Note: 1 Transactions arising out of demerger as per note 4 of Schedule 21 (B) is a non cash transaction and not
considered in above cash flow workings.
2 This being first financial year of the Company since incorporation disclosure of previous year is not applicable.
3 Cash Flow statement has been prepared under the indirect method as set out in AS-3.
4 Purchase of fixed assets includes movement of capital work in progress during the period.
In terms of our report attached

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. ADESH GUPTA
Chartered Accountants Chartered Accountants O.P. PURANMALKA
ASHOK MALU
B.P. SHROFF ATUL B. DESAI Directors
Partner Partner

Mumbai KAMAL RATHI

Dated: 18th May, 2010 Manager & Company Secretary

82
Subsidiary Company’s Reports and Accounts

83
HARISH CEMENT LIMITED

DIRECTORS’ REPORT
TO THE MEMBERS
The Directors have pleasure in presenting the Thirteenth Annual Report of your Company together with the
Audited Accounts for the year ended 31st March, 2010.
OPERATIONS
During the year under review, Company incurred Rs.4,721.28 lacs for puchases of private land of Plant &
Mining Site area & also incurred preoperative expenses of Rs.221.65 lacs as compared to last year
Rs. 108.09 lacs.
Your company have entered in to land purchase agreements for 1,702 bighas of private land upto
31st March, 2010 falling in plant site and mining lease area.
The Govt. of HP has approved and notified the Rehabilitation and Resettlement Plan,2009 for resettlement
& rehabilitation of families affected by Cement Plants to be established in Himachal Pradesh.
Your company has received Technical Offers from technology suppliers for Main Plant and machineries and
these offers have been evaluated by the consultant for placing the order.
DIRECTORS
Shri. Arun Daga retires from office by rotation and being eligible offer himself for re-appointment.
DIRECTORS’ RESPONSIBILITY STATEMENT
As stipulated in Section 217(2AA) of the Companies Act, 1956, your Directors subscribe to the “Directors
Responsibility Statement” and confirm as under that :
i) in the preparation of the Annual Accounts, the applicable accounting standards have been followed
along with proper explanation relating to material departures;
ii) accounting policies have been selected and applied consistently and the judgments and estimates made
are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at
the end of the financial year and of the profit or loss of the company for that period;
iii) proper and sufficient care has been taken for the maintenance of adequate records in accordance with
the provisions of this Act for safeguarding the Assets of the company and for preventing and detecting
fraud and other irregularities;
iv) the annual accounts have been prepared on a going concern basis.
AUDITORS
The observations made in the Auditors’ Report are self explanatory and therefore do not call for any further
comments under Secion 217(3) of the Companies Act,1956.
The Board has proposed that M/s. G.P. Kapadia & Co. Chartered Accountants, Mumbai, be re-appointed as
the Statutory Auditor of the Company and to hold office till the conclusion of the next Annual General
Meeting of the Company. M/s G.P. Kapadia & Co. Chartered Accountants, Mumbai have forwarded their
certificate to the Company , stating that their re-appointment, if made, will be within the limit specited in that
behalf in Sub-section (1B) of Section 224 of the Companies Act,1956.
PARTICULARS OF EMPLOYEES
The Company had no employee in the Category specified Under Section 217 (2A) of the Companies Act,
1956.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
In view of the nature of operations, we have nothing to report on these matters.
On behalf of the Board

R.M.GUPTA
P. K.JAIN
Mumbai ARUN DAGA
Date: 18th May, 2010 Directors

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HARISH CEMENT LIMITED

AUDITORS’ REPORT
To the Shareholder’s of Harish Cement Limited
We have audited the attached Balance Sheet of Harish Cement Limited as at 31st March, 2010. No Profit
and Loss Account has been prepared as the Company has not carried out any activities. These financial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In accordance with the provisions of Section 227 of the Companies Act, 1956, we report that:
1. As the Company has carried out no activities during the year, the requirement by the Companies
(Auditor’s Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, is not applicable.
2. Further to our comments in paragraph 1 above, we report that :
(a) we have obtained all the information and explanations, which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company so far
as appears from our examination of those books;
(c) the balance sheet dealt with by this report is in agreement with the books of account;
(d) in our opinion, the balance sheet dealt with by this report, complies with the accounting standards
referred to in Section 211(3C) of the Companies Act, 1956, to the extent applicable;
(e) on the basis of written representations received from the directors as on 31st March, 2010, and
taken on record by the Board of Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956; and
(f) in our opinion and to the best of our information and according to the explanations given to us, the
said balance sheet read together with the significant accounting policies and other notes appearing
in Schedule 5, gives the information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the accounting principles generally
accepted in India, of the state of Company’s affairs as at 31st March, 2010.

G. P Kapadia & Co
Chartered Accountants
(Firm No 104768W)

ATUL B. DESAI
Partner
(Membership No 30850)
Mumbai
Dated: 18th May, 2010

85
HARISH CEMENT LIMITED

BALANCE SHEET AS AT 31ST MARCH, 2010

(Amount in Rs.)
Schedules Previous
Year
31st March, 2010
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 500,000 500,000
Reserves and Surplus 2 - -

Loan Funds
Secured Loans 3 - -
Unsecured Loans 4 73,83,52,754 25,71,68,655
TOTAL 73,88,52,754 25,76,68,655

APPLICATION OF FUNDS
Fixed Assets 5
Gross Block 47,54,67,551 22,92,606
Less : Depreciation 12,27,468 735,181
Net Block 47,42,40,083 15,57,425
Capital Work-in-Progress 26,63,61,251 22,80,14,463
74,06,01,334 22,95,71,888

Investments 6 - -
Current Assets, Loans and Advances
Inventories 7 - -
Sundry Debtors 8 - -
Cash and Bank Balances 9 2,76,086 45,77,114

Loans and Advances 10 3,90,39,723 2,40,12,241

3,93,15,809 2,85,89,355
Less :
Current Liabilities and Provisions
Liabilities 11 4,10,64,389 4,33,000
Provisions 12 - 59588

4,10,64,389 4,92,588
Net Current Assets (17,48,580) 2,80,96,767
Balance as per attached Profit and Loss Account
TOTAL 73,88,52,754 25,76,68,655

Accounting Policies and Notes on Accounts 13

As the Company has not started operation, so Profit and Loss Statement is not prepared.
As per our report of even date
For G. P. Kapadia & Co. R.M.GUPTA
Chartered Accountants P. K.JAIN
ARUN DAGA
Directors
ATUL B. DESAI
Partner
Mumbai
Dated: 18th May, 2010

86
HARISH CEMENT LIMITED

SCHEDULES FORMING PART OF ACCOUNTS (Amount in Rs.)

Previous
Year
SCHEDULE - 1
SHARE CAPITAL
Authorised
50,00,000 Equity Shares of Rs.10/- each 5,00,00,000 5,00,00,000
Issued, Subscribed & Paid-up *
50,000 Equity Shares of Rs.10/- each 5,00,000 5,00,000
TOTAL 5,00,000 5,00,000
* Full Share capital is held by the Holding company.

SCHEDULE - 2
RESERVES AND SURPLUS - -
TOTAL - -
SCHEDULE - 3
SECURED LOANS - -
TOTAL - -
SCHEDULE - 4
UNSECURED LOANS
From Holding Company 73,83,52,754 25,71,68,655
TOTAL 73,83,52,754 25,71,68,655

SCHEDULE - 5
FIXED ASSETS
(Amount in Rs.)
Sr.No. PARTICULARS GROSS BLOCK DEPRECIATION NET BLOCK
As at Additions Adjustments As at Upto For the Adjustments / Up to As at
01/04/2009 / Deductions 31/03/2010 31/03/2009 Year Deductions 31/03/2010 31/03/2010 31/03/2009
1 FREEHOLD LAND - 47,21,28,473 - 47,21,28,473 - - - - 47,21,28,473 -
2 BUILDINGS - - - - - - - - - -
3 RAILWAY SIDINGS - - - - - - - - - -
4 PLANT AND MACHINERY - - - - - - - - - -
5 SHIPS - - - - - - - - - -
6 ROLLING STOCKS AND LOCOMOTIVES - - - - - - - - - -
7 FURNITURE, FIXTURES & OFFICE
EQUIPMENT 22,00,949 7,65,481 - 29,66,430 7,21,905 4,67,153 - 11,89,058 17,77,372 14,79,045
8 VEHICLES ETC. 91,657 - - 91,657 13,276 8,707 - 21,983 69,674 78,380
9 INTANGIBLE - ASSETS - 2,80,991 - 2,80,991 - 16,427 - 16,427 2,64,564 -
TOTAL 22,92,606 47,31,74,945 - 47,54,67,551 7,35,181 4,92,287 - 12,27,468 47,42,40,083 15,57,425
Previous Year 14,13,600 9,22,863 43,857 22,92,606 2,92,633 4,71,454 28,906 7,35,181
Capital Work-in-Progress (including
advances and Project Dev. Exp.) * 26,63,61,251 22,80,14,463
74,06,01,334 22,95,71,888

Notes:
Capital work in progress includes the followings:
* Details To date Amount(Rs)
1 Project Development Exp 8,63,85,795(For detail refer Note No.1 of Sch. No. 13B)
2 Cost of Mining Rights (Acquired from HCIL) 7,55,00,000
3 Stamp fees of Mining lease deed 42,13,000
4 Advance against land purchase-Mines 6,19,72,150
5 Advance against land purchase-Plant 2,48,20,690
6 Rehabilitation & Resettlement exps 1,17,82,826
7 Advance for Stamp Duty 16,86,790
Total 26,63,61,251

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HARISH CEMENT LIMITED

(Amount in Rs.)
Previous
Year

SCHEDULE - 6
INVESTMENT - -
TOTAL - -

SCHEDULE - 7
INVENTORIES - -
TOTAL - -

SCHEDULE - 8
SUNDRY DEBTORS
- -
TOTAL - -

SCHEDULE - 9
CASH AND BANK BALANCES
Cash balance on hand 60,989 57,163
Cheques on hand - -
Bank Balances :
With Scheduled Banks :
In Current accounts (including cheque under collection) 2,15,097 45,19,951
In Fixed deposit accounts - -
TOTAL 2,76,086 45,77,114

SCHEDULE - 10
LOANS AND ADVANCES
(Unsecured, considered good except stated otherwise)
Deposits and Balances with Government and other Authorities 3,32,35,030 2,12,35,030
Other Deposits 50,000 42,340
Advance recoverable in cash or kind or for value to be received.
Considered Good 57,54,693 27,34,871
TOTAL 3,90,39,723 2,40,12,241

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HARISH CEMENT LIMITED

(Amount in Rs.)
Previous
Year

SCHEDULE - 11
CURRENT LIABILITIES
Sundry creditors :
a) Small scale industrial undertakings* - -
(To the extent identified with available information)
b) Others 1,52,78,311 2,96,264
Bank Overdraft(SBI) 2,55,90,450 -
Interest Accrued on Bank OD 8,996 -
Security and Other Deposits - -
Provision for expenses 36,182 36,500
TDS Payable 1,50,450 1,00,236
TOTAL 4,10,64,389 4,33,000

SCHEDULE - 12
PROVISIONS
Provision for Gratuity - 40,588
Provision for Leave Encashment - 19,000
TOTAL - 59,588

SCHEDULE - 13
ACCOUNTING POLICIES AND NOTES ON ACCOUNTS

A. Significant Accounting Policies:

1 Accounting Concepts:

The financial statements are prepared under the historical cost convention on an accrual basis and in in
accordance with the applicable mandatory Accounting Standards.

2 Use of Estimates:

The preparation of financial statements are in conformity with the generally accepted accounting principles which
requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the
date of financial statements and the reported amounts of revenues and expenses during the reported period.
Difference between the actual results and estimates are recognised in the period in which the results are known
or materialise.

3 Fixed Assets:

Fixed assets are stated at cost (including other expenses related to acquisition and installation)

4 Treatment of expenditure during construction period:

Expenditure during construction period is included under Capital Work in Progress and the same to be allocated
to the respective Fixed Assets on the completion of its construction.

5 Depreciation:

Depreciation is charged on a straight-line basis over the estimated useful lives of the assets.

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HARISH CEMENT LIMITED

The estimated useful lives are as follows.

Assets No of Years
Office Equipment 4
Computers 4
Furniture & Fittings 7
Motor cycles 10
Intangible-Assets(Software) 3
Mobile sets 3
Depreciation on additions/deductions is calculated pro-rata from/ to the month of addition/deduction.
B NOTES ON ACCOUNTS
1. The Company is setting up a Greenfield Cement Plant in Sundernagar, Himachal Pradesh, India. No profit
and Loss Account has been prepared since the company has not commenced revenue operations. The
expenditure incurred during the construction period are classified as “Project Development Expenditure”
pending capitalisation and will be apportioned to the Assets on the completion of the project. Necessary
details as per part II of schedule VI of the Companies Act,1956 have been disclosed below :
(Amount in Rs.)
Project Development Expenditures For the year For the year
Account (Included under Capital 2009-2010 2008-2009
work-in-progress)

Opening Balance 6,42,20,588 5,34,13,000

Add :
Advertisement Expenses 6,57,614 4,03,433
Architectural Services (Office Interior) - 12,000
Audit Fees 5,000 5,000
Bank Charges 9,767 8,898
Books & Periodicals 7,604 4,210
Casual Salary & Wages 9,13,921 8,44,647
Computer Maintenance Exp. 4,310 10,605
Consultancy Charges 30,03,750 7,86,000
Contribution to HimShree Ladies Club 8,430 9,870
Conveyance Expenses 8,03,213 3,84,212
Depreciation 4,92,287 4,71,455
Drilling / Exploration Exp. 1,800 -
Electricity Charges 76,483 77,107
EIA/EMP/SIA Exp 56,439 3,43,561
Environment & Pollution Control Exp - 6,580
Festival Celebrations 33,859 33,255
General Expenses 80,383 1,68,310
General Insurance premium 28,440 2,975
Gift Expenses 3,38,867 4,30,464
Guest Entertainment Exp. 59,020 1,05,948
Guest House Expenses 1,33,358 1,28,487

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HARISH CEMENT LIMITED

(Amount in Rs.)
Project Development Expenditures For the year For the year
Account (Included under Capital 2009-2010 2008-2009
work-in-progress)
HRMS Services Charges 24,750 -
Interst on Bank OD 8,996 -
I.T.Services Expenses 2,400 -
Lab Consumable Expenses 1,16,857 42,273
L.A.O- Office Exp 8,09,962 4,53,867
Land Development Expenses 57,47,172 -
Loss on sale of Fixed Assets - 6,950
Legal & Professional Charges 18,55,092 16,73,400
Postage & Telegram Expenses 32,482 50,185
Printing & Stationery Expenses 4,78,534 3,72,337
Prospecting / Exploration Exp. 10,12,500 -
Rates & Taxes 7,15,685 2,83,585
Recruitment Exp. - 15,990
Rent(Office & Guest House) 7,59,500 6,05,000
Repair & Maintenance Exp. 54,901 36,339
Sample Testing 2,60,077 2,57,211
Social Welfare Activities Expenses 21,88,032 11,17,249
Soil Testing Exp 1,23,700 -
Staff Welfare Expenses 1,38,718 1,34,138
Subscription for Membership 1,500 1,500
Telephone Expenses 1,93,126 2,95,152
Topographic Survey 1,22,400 67,320
Training Exp. 9,530 8,950
Travelling Expenses 7,80,006 9,77,258
Vehicle Repair / Running Expenses 13,940 19,612
Water Exp (Office-Sundernagar) 802 718

Total 2,21,65,207 1,06,56,051

Provision For Taxation

Fringe Benefit Tax - 1,51,537
Closing Balance 2,21,65,207 8,63,85,795 1,08,07,588 6,42,20,588

2 Contingent liabilities -Estimated amount of Contracts remaining to be executed on capital account and not
provided( advance paid Rs.5,006.72 lacs) Rs. 9,020.31 Lacs
3 Previous year figures have been regrouped wherever necessary.
4 Prusuant to a Scheme of Arrangement u/s 391 to 394 of the Companies Act, 1956, Shares of the Company
held by Grasim Industries Ltd. (holding Company of the Company) have been transferred to Samruddhi Cement
Ltd. w.e.f. 1st October, 2009. Accordingly the Company is a subsidiary of Samruddhi Cement Ltd. (subsidiary of
Grasim Industries Ltd.) w.e.f. 1st October, 2009.

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5 Disclosure of related parties/related party transactions:

A. List of related parties
Name of the Related Party Nature of Relationship
Samruddhi Cement Ltd Holding Company
Grasim Industries Ltd.(Grasim) Ultimate Holding Company
UltraTech Cement Ltd. Fellow Subsidiary
B. Disclosure of related party transactions:
Sr. No. Nature of Transaction Holding Company Amount in Rs.

1 Loans & Borrowings Grasim Industries Ltd. 21,11,84,099

2 Loans & Borrowings Samruddhi Cement Ltd 27,00,00,000

Outstanding Balance as on March,2010

Sr. No. Nature of Transaction Holding Company Amount in Rs.

1 Unsecured loans Samruddhi Cement Ltd 73,83,52,754

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2010
Amt in Rs.
Current Year Pervious Year

A. Cash Flow from Operating Activities

Adjustments for:
Advances and Receivables (15,027,482) (229,006)
Trade Payables 25,589,754 384,998
Net Cash from/(used in)Operating activities 10,562,272 155,992
B. Cash Flow from Investing Activities
Purchases of Fixed Assets (473,174,945) (922,863)
CWIP(Advances & Projet Dev. Expes) (22,872,454) (94,445,915)
Sale of fixed assets - 43,857
Net Cash from/(used in) investing activities (496,047,399) (95,324,921)
C Cash Flow from Financing Activities
Proceeds from borrowings 481,184,099 99,118,686
Net Cash from/(used in) Financing activities 481,184,099 99,118,686
D Net increase/(Decrease) in Cash and Cash equivalent (4,301,028) 3,949,757
Cash and Cash equivalent at beginning of the year 4,577,114 627,357
Cash and Cash equivalent at end of the year 276,086 4,577,114
(Cash and cash equivalent represent cash and bank balances)

As per our report of even date

For G. P. Kapadia & Co. R.M.GUPTA
Chartered Accountants P. K.JAIN
ARUN DAGA
Directors
ATUL B. DESAI
Partner
Mumbai
Dated: 18th May, 2010

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Balance Sheet abstract and Company’s General Business Profile

I. Registration Details
Registration No. 0 6 - 1 9 1 7 3 State Code 0 6
Balance Sheet Date 3 1 - 0 3 - 1 0
II. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
7 7 9 9 1 7 7 7 9 9 1 7
Sources of Funds :
Paid up Capital Reserves & Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L 7 3 8 3 5 3
Application of Funds :
Net Fixed Assets Investments
7 4 0 6 0 1 N I L
Net Current Assets Miscellaneous Expenditure
( 1 7 4 8 ) N I L
Accumulated Losses
N I L
IV. Performance of Company (Amount in Rs. Thousands)
Turnover (including other income) Total Expenditure
N I L N I L
+/- Profit / (Loss) Before Tax +/- Profit / (Loss) After Tax
N I L N I L
Please Tick Appropriate box + for Profit, - for loss
Earnings Per Share in Rs. Dividend Rate %
N I L N I L
V. Generic Names of Three Principal Products / Services of the Company (as per monetary terms)

No Production activities during the year

R.M.GUPTA
P. K.JAIN
ARUN DAGA
Directors

Mumbai
Dated: 18th May, 2010

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PLANT LOCATIONS
CEMENT LIMITED
Aditya Cement Works
Adityapuram
Sawa – Shambhupura Road
Dist. Chittorgarh
Rajasthan 312 613
Tel : (01472) 2220192-197
Fax : (01472) 2220289
Rawan Cement Works
Grasim Vihar, Village P.O.
Rawan Tehsil: Sigma
Dist. Raipur (C.G.)
Tel : (07726) 288217-20
Fax : (07726) 288215, 288209
Kotputli Cement Works
V & P.O. Mohanpura
Tehsil: Kotputli
Dist. Jaipur, Rajasthan 303 108
TTel: (01421) 215719
Fax: (01421) 288665
Rajashree Cement Works
Aditya Nagar, Malkhed Road
Gulbarga 585 292, Karnataka
Tel : (08441) 288888
Fax : (08441) 288624 / 288365
Reddipalayam Cement Works
Reddipalayam P.O.
Dist. Ariyalur 621 704, T.N.
Tel : (04329) 249240
Fax : (04329) 249253
Vikram Cement Works
Dist. Neemuch, Khor 458 470 (M.P.)
Tel : (07420) 230830, 235557
Fax : (07420) 235524
Birla White
Rajashree Nagar, P.O. Kharia Khangar
Tehsil: Bhopalgarh
Dist. Jodhpur 342 606 (Rajasthan)
Tel : (02920) 264040–47
Fax : (02920) 264244 / 264222
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NOTES
ARISH CEMENT LIMITED

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INFOMEDIA 18 LIMITED