2010-11 - Grasim

SUBSIDIARIES 

GRASIM INDUSTRIES LIMITED

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

We live by their values. 

Integrity, Commitment, Passion, Seamlessness and Speed.

CONTENTS 

2 UltraTech Cement Limited 

96 Dakshin Cements Limited 

102 Harish Cement Limited 

130 UltraTech Cement Middle East Investment Ltd. 

148 Grasim Bhiwani Textiles Limited 

162 Samruddhi Swastik Trading and Investments Limited 

172 Sun God Trading and Investments Limited 

1 1 ⊳

UltraTec 

ech Cement Limited 

Dear Shareholders, 

Your Directors present the Eleventh Annual Report 

together with the Audited Accounts of your 

Company for the year ended 31 st March, 2011. 

CORPORATE DEVELOPMENTS 

There were two significant developments during 

the year. Firstly, the Scheme of Amalgamation of 

Samruddhi Cement Limited (“Samruddhi”) with 

your Company (“the Scheme”) became effective 

from 1 st August, 2010 and operative from the 

Appointed Date i.e.1 st July, 2010. In terms of the 

Scheme, 149,533,469 equity shares of ` 10/- each 

FINANCIAL RESULTS 

have been allotted to shareholders of Samruddhi 

including the Custodian(s) of the Global Depository 

Receipts (GDRs). 

Secondly, your Company’s wholly owned 

subsidiary, UltraTech Cement Middle East 

Investments Limited (“UCMEIL”) completed the 

acquisition of ETA Star Cement together with its 

operations in UAE, Bahrain and Bangladesh and 

acquired management control. 

Consequent to the above developments, your 

Company’s capacity stands augmented to 52 

MMTPA placing it among the top 10 cement 

companies in the world. 

(` in Crores) 

2010-1 

0-11* 

1* 2009-1 

09-10 

Net Turno 

urnover 

er 13,21 

3,210 7,050 

Profit before ore Depreciation, Interest and Tax ax (PBDIT) 

T) 2,829 2,094 

Less: Depreciation 766 

66 388 

Profit before ore Interest and Tax ax (PBIT) 

T) 2,063 1,706 

Interest 277 118 

Profit before 

Tax ax (PBT) 1,786 1,588 

Tax Expenses 382 495 

Profit after 

ter Tax 

ax 1,404 1,093 

Add: Balance brought forward from Previous Year 2,729 2,438 

Surplus available ailable for appropriation 4,134 3,532 

Appropriation 

Debenture Redemption Reserve 59 (35) 

General Reserve 1,100 750 

Dividend 164 75 

Corporate tax on Dividend 27 12 

Balance transferred to Balance Sheet 2,784 2,729 

Tot 

otal 

4,134 3,532 

* On account of the amalgamation of Samruddhi with your Company w.e.f. 1 st July, 2010, the figures for FY11 

are strictly not comparable with the corresponding period of the previous year. However comparable net 

turnover and PBIT for the previous year are ` 13,442 crores and ` 3,319 crores recasted so as to include 

Samruddhi’s figures for the period 1 st July, 2009 to 31 st March, 2010. 

2

UltraTec 


OVER 

VERVIEW 

VIEW AND REVIEW OF OPERATIONS 

The financial year under review began on a 

positive note backed by the inherent strength of 

the Indian economy. Despite the stimulus 

measures announced earlier being gradually 

withdrawn, rise in domestic savings, growth in 

investments, revival of agriculture, manufacturing 

and service sectors resulted in the economy 

recording pre-financial crises growth rates and an 

acceleration in GDP. However, the economy 

started witnessing a rise in inflationary trend 

during the second half together with a tightening 

of the monetary policy, widening trade deficit, 

slowdown in corporate spending and escalation 

in global energy prices. 

In the short to middle term, the economy will be 

faced with a number of challenges – most 

importantly, the high level of inflation which is 

not indicating any signs of reduction and the 

hardening global energy prices. A number of 

measures in the form of monetary, fiscal and 

policy will be required to overcome these 

challenges. Despite this, the economy is poised 

for good growth and has the ability to sustain the 

same, linked to domestic consumption. 

The year 2010-11 was indeed challenging for the 

cement industry. Demand off-take was weaker 

than expected due to lower realty and 

infrastructure spending, extended monsoon, nonavailability 

of railway wagons. Industry also 

witnessed capacity additions of around 28 MMT 

over and above the capacity addition of around 

60 MMT in FY10. On the cost front, fuel and 

energy prices showed no signs of dropping. Prices 

of imported coal shot up by 37% while that of 

domestic coal rose by 30%-150% in March, 2011. 

Further, the cost of key inputs like fly ash, slag 

and other raw materials also rose significantly. 

Rising interest rates is a matter of concern. The 

prevailing situation in the Middle East and 

surrounding regions adversely affected exports. 

The combination of slower demand growth 

coupled with increased supply put pressure on 

cement pricing and margins. 

Against this background, your Company has 

produced 32.92 MMT of cement as against 32.11 

MMT in previous year. Effective capacity utilisation 

was 81% as against 86% in previous year on an 

expanded capacity. The aggregate sales volume 

of 34.67 MMT was at par with the previous year 

sales volume of 34.68 MMT.(Previous year figures 

have been recasted so as to include Samruddhi’s 

figures for the period 1 st July, 2009 to 31 st March, 

2010). 

Your Company’s net turnover stood at ` 13,210 

crores as against ` 13,442 crores (recasted) 

achieved in the previous year. Profit before interest 

and tax stood at ` 2,063 crores as against ` 3,319 

crores (recasted). 

Going forward, the Government’s increased focus 

on urban as well as rural infrastructure 

development, housing and an enhanced capital 

allocation towards infrastructure in the 12 th – Five 

Year Plan, will be the major growth drivers. 

DIVIDEND 

Your Directors recommended a dividend of ` 6/- 

per equity share (` 6/- per equity share) of ` 10/- 

each for the year ended 31 st March, 2011. The 

dividend distribution would result in a cash outgo 

of ` 191 crores (including tax on dividend of 

` 27 crores) compared to ` 87 crores (including 

tax on dividend of ` 12 crores) paid for the year 

2009-10. The higher outgo is on account of new 

shares allotted to Samruddhi’s shareholders upon 

the amalgamation of Samruddhi with your 

Company. 

EMPLOYEE STOCK OPTION SCHEME 

During the year 157,509 stock options have been 

granted by your Company. Of these, 97,106 

options have been granted to eligible employees 

of Samruddhi in terms of the Scheme. 

109,372 stock options vested in eligible 

employees. The ESOS Compensation Committee 

allotted 21,117 equity shares of ` 10/- each of 

your Company to some option grantees, pursuant 

to the exercise of stock options. 

3 ⊳

UltraTec 


The disclosure, as required under Clause 12 of 

Securities and Exchange Board of India (Employee 

Stock Option Scheme and Employee Stock 

Purchase Scheme) Guidelines, 1999 is set out in 

Annexure I to this Report. 

AWARDS 

ARDS 

As many of you must be aware, the Government 

of India has bestowed the prestigious “Padma 

Bhushan Award” on Mrs. Rajashree Birla, Director 

of your Company. This is in recognition of her 

exemplary contribution in the area of social work. 

It is indeed a matter of pride for all of us. 

Your Company was the recipient of the Most 

Respected Company Award 2011 in the Cement 

Sector from the Business World. 

A selective list of awards conferred upon your 

Company include: 

• Top Exporter Award from CAPEXIL for the 

14 th consecutive year. 

• The 9 th Annual “Greentech Global Safety 

Award” 2010 from Greentech Foundation for 

Reddipalayam Cement Works (RDCW); 

• The Confederation of Indian Industry’s 

National Award for excellence in energy 

management 2010 “Excellent Energy Efficient 

Unit” upon RDCW; 

• Asian CSR Award, Kuala Lumpur, Malaysia, 

from Asian Institute of Management Center 

on Vikram Cement Works (VC) for its 

contribution to society; 

• Greentech Environmental Excellence Award 

for excellent contribution to environmental 

activities on VC. 

RESEARCH 

AND DEVELOPMENT 

Your Company’s Research and Development 

(R&D) efforts continue to be focused on the 

development of new products and processes that 

create 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 at new ways 

to preserve the environment and manage 

resources responsibly. Towards this, your 

Company continues to maximise use of industrial 

waste, alternative sources of fuel and chemicals 

and mineral evaluation of captive limestone 

reserves. 

Your Company is closely engaged with the Aditya 

Birla Science and Technology Company Limited 

(ABSTCL). ABSTCL is the corporate research and 

development centre for the Aditya Birla Group. 

ABSTCL supports the broad diversity of the 

Group’s businesses through multi-disciplinary 

teams of expert scientists and engineers who 

lead fundamental and applied research projects. 

It is supported by state-of-the-art equipment set 

in a one-of-a-kind brand new technology-led 

environment and seeks advances in products, 

processes and applications in your Company’s 

products (mineralogy, clinkerisation and 

concrete). 

HUMAN RESOUR 

URCES 

Your Company believes that Human Resources 

play a very criticle role in its growth. Your Directors’ 

are pleased to inform you that the Aditya Birla 

Group of which your Company is a part, has been 

declared as one of the Best Employers in India 

by the Aon – Hewitt survey conducted recently. 

The Group ranked second among two hundred 

other Indian organisations which took part. The 

process entailed a rigorous six months exercise 

involving HR Systems and processes audit, online 

survey with several employees, face to face 

meetings with Leadership teams, HR and a cross 

section of employees. 

Going forward, attracting and retaining talent will 

be a key challenge. Various initiatives have been 

launched to provide growth opportunities to 

employees and stem attrition. Notable initiatives 

for the current year include the rollout of the 

Employee Value Proposition and the Career Portal 

Platform to provide visibility of career opportunity 

to the employees. 

SAFE 

AFETY 

Your Company lays significant importance on the 

safety of its employees, service providers, host 

communities and society at large. During the year, 

your Company has embarked upon a journey to 

4

UltraTec 


achieve excellence in its Safety practices and 

performances. Your Company has enlisted 

M/s DuPont Sustainability Group, a consultancy 

wing of DuPont India to help in its aspiration to 

achieve safety excellence. DuPont is recognised 

worldwide for its strong safety culture. 

CORPORATE GOVERNANCE 

Your Directors reaffirm their continued 

commitment to good corporate governance 

practices. During the year under review, your 

Company was in compliance with the provisions 

of Clause 49 of the Listing Agreement with the 

stock exchange relating to corporate 

governance. 

The compliance report is provided in the Corporate 

Governance section of the Annual Report. The 

auditor’s certificate on compliance with the 

provisions of Clause 49 of the Listing Agreement 

is annexed to this Report. 

SUBSIDIARY Y COMPANIES 

The annual accounts of your Company’s 

subsidiaries viz. Dakshin Cements Limited, Harish 

Cement Limited, UltraTech Cement Lanka (Pvt) 

Limited and UCMEIL and the related detailed 

information shall be made available to 

shareholders of your Company and its subsidiaries 

upon receipt of a request from them. They will 

also be kept open for inspection at the Registered 

Office of your Company and its subsidiaries during 

business hours. 

CONSOLIDATED FINANCIAL STATEMENTS 

TEMENTS 

The Consolidated Financial Statements have been 

prepared in accordance with the applicable 

Accounting Standards and the provisions of the 

Listing Agreement with the stock exchanges and 

forms part of the Annual Report. 

FINANCE 

Your Company has raised long term loans 

amounting to ` 90 crores to meet the requirement 

of capital expenditure and other approved 

purposes. Further, your Company’s wholly owned 

subsidiary viz. UCMEIL has raised/arranged 

US$ 290 million (equivalent to ` 1,293 crores) for 

its operations in UAE, Bahrain and Bangladesh. 

CRISIL has re-affirmed the “AAA/Stable/P1+” 

rating for your Company’s long term borrowings 

and bank loan facilities. Your Company has 

adequate liquidity and a strong balance sheet. 

CARE has also re-affirmed the “AAA” rating of 

the Non-Convertible Debentures of ` 500 crores 

transferred from Samruddhi upon its 

amalgamation with your Company. 

Your Company has not accepted any fixed 

deposits and as such, no amount of principal or 

interest on fixed deposit was outstanding as of 

the balance sheet date. 

ENERGY 

GY, TECHNOLOGY 

GY AND FOREIGN 

EXCHANGE 

Information on conservation of energy, technology 

absorption and foreign exchange earnings and 

outgo, required to be disclosed pursuant to 

section 217(1)(e) of the Act read with the 

Companies (Disclosure of Particulars in the Report 

of the Board of Directors) Rules, 1988 is given in 

Annexure II and forms part of this Report. 

PAR 

ARTICULAR 

TICULARS S OF EMPLOYEES 

In accordance with the provisions of Section 

217(2A) of the Act 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 line with the provisions of 

Section 219(1)(b)(iv) of the Act, the Report and 

Accounts as set out therein, are being sent to all 

Members of your 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 

your Company. 

DIRECTOR 

OR’S RESPONSIBILITY STATEMENT 

TEMENT 

The Audited Accounts for the year under review 

are in conformity with the requirements of the 

Act and the Accounting Standards. The financial 

statements reflect fairly the form and substance 

5 ⊳

UltraTec 


of transactions carried out during the year under 

review and reasonably present your Company’s 

financial condition and results of operations. 

Your Directors confirm that: 

I. in the preparation of the Annual Accounts, 

applicable accounting standards have been 

followed along with proper explanations 

relating to material departures, if any; 

II. 

the accounting policies selected have been 

applied consistently and judgments and 

estimates are made that are reasonable and 

prudent so as to give a true and fair view of 

the state of affairs of your Company as at 

31 st March, 2011 and of the profit of your 

Company for the year ended on that date; 

III. proper and sufficient care has been taken for 

the maintenance of adequate accounting 

records in accordance with the provisions of 

the Act for safeguarding the assets of your 

Company and for preventing and detecting 

frauds and other irregularities; 

IV. 

the Annual Accounts of your Company have 

been prepared on a going concern basis. 

DIRECTOR 

ORS 

Mr. Adesh Gupta and Prof. Nirmalya Kumar were 

appointed Additional Directors on the Board of 

your Company with effect from 26 th October, 2010 

and 16 th February, 2011 respectively. They hold 

office till the conclusion of the ensuing Annual 

General Meeting. Notices pursuant to Section 257 

of the Act have been received from Members 

proposing Mr. Gupta and Prof. Kumar for 

appointment as Directors of your Company. 

Mr. R. C. Bhargava, Mr. S. Rajgopal and Mr. D. D. 

Rathi retire from office by rotation and being 

eligible, offer themselves for re-appointment. 

The Board recommends these appointments / 

re-appointments. 

Resolutions seeking your approval on these items 

are included in the Notice convening the Annual 

General Meeting together with a brief resume of 

the Directors being appointed/re-appointed. 

AUDI 

UDITOR 

ORS 

M/s. Deloitte Haskins & Sells, Chartered 

Accountants, Mumbai and M/s. G.P. Kapadia & 

Co., Chartered Accountants, Mumbai were 

appointed Joint Statutory Auditors of your 

Company from the conclusion of the previous 

Annual General Meeting until the conclusion of 

the ensuing Annual General Meeting. Being 

eligible, they offer themselves for re-appointment 

as auditors of your Company. 

The Board proposes the re-appointment of 

M/s. Deloitte Haskins & Sells, Chartered 

Accountants, Mumbai and M/s. G.P. Kapadia & 

Co., Chartered Accountants, Mumbai, as Joint 

Statutory Auditors of your Company based on 

the recommendation of the Audit Committee, to 

hold office from the conclusion of the ensuing 

Annual General Meeting until the conclusion of 

the next Annual General Meeting. 

The Board also proposes the re-appointment of 

M/s. Haribhakti & Co., Chartered Accountants, 

Mumbai as the Branch Auditor of your Company’s 

Unit’s at Jafrabad and Magdalla in Gujarat and 

Ratnagiri in Maharashtra, based on the 

recommendation of the Audit Committee, to hold 

office from the conclusion of the ensuing Annual 

General Meeting until the conclusion of the next 

Annual General Meeting. In terms of the 

provisions of the Act, the Board also seeks your 

approval for the appointment of Branch Auditors 

in consultation with your Company’s Statutory 

Auditor’s for any other Branch/Unit/Division of your 

Company, which may be opened/acquired/installed 

in future in India or abroad. 

Resolutions seeking your approval on these items 

are included in the Notice convening the Annual 

General Meeting. 

The observation made in the Auditor’s Report are 

self-explanatory and therefore, do not call for any 

further comments under Section 217(3) of the 

Act. 

COST AUDI 

UDITOR 

ORS 

Pursuant to the provision of Section 233B of 

the Act, your Directors have appointed 

6

UltraTec 


M/s. N.I. Mehta & Co., Cost Accountants, Mumbai 

and M/s. N. D. Birla & Co., Cost Accountants, 

Ahmedabad, jointly, as the Cost Auditors to 

conduct the Cost Audit of your Company for the 

financial year ending 31 st March, 2012, subject to 

the approval of the Central Government. 

M/s. N. D. Birla & Co., Cost Accountants, 

Ahmedabad was one of the Cost Auditors of the 

erstwhile Samruddhi and also Grasim Industries 

Limited. 

APPRECIATION 

and look forward to their continued support in 

future. 

We very warmly thank all of our employees for 

their contribution to your Company’s performance. 

We applaud them for their superior levels of 

competence, dedication and commitment to your 

Company. 

For and on behalf of the Board 

Your Directors wish to take this opportunity to 

express their deep sense of gratitude to the 

banks, financial institutions, stakeholders, 

business associates, Central and State 

Governments for their co-operation and support 

Mumbai, 

26 th April, 2011 

Kumar Mangalam Birla 

Chairman 

7 ⊳

UltraTec 


Disclosure pursuant to Clause 1 

lause 12 of Securities and Ex 

2 of Securities and Exchange B 

hange Board of India (Emplo 

oard of India (Employee Stoc 

ee Stock Option Sc 

k Option Scheme and Emplo 

heme and Employee Stoc 

ee Stock P 

k Purc 

urchase Sc 

hase Scheme) Guidelines, 1999 

a. 

b. 

c. 

j. 

k. 

l. 

d. 

e. 

f. 

g. 

h. 

i. 

Particulars 

No. of options granted 

The pricing formula 

Options vested 

Options exercised 

The total number of shares arising as a result of exercise 

of the options. 

Options lapsed 

Variation of terms of options 

Money realised by exercise of options 

Total number of options in force: 

- Vested 

- Unvested 

Employee wise details of options granted to: 

i. Senior Managerial Personnel 

Mr. O. P. Puranmalka, Whole-time Director 

ii. Any other employee who receives a grant in any 

one year of option amounting to 5% or more of 

option granted during that year. 

iii. Identified employee who were granted 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. 

Diluted Earnings Per Share (EPS) pursuant to issue of 

shares on exercise of option calculated in accordance 

with Accounting Standard (AS) 20 ‘Earning Per Share’ 

Where the Company has calculated the employees 

compensation cost using the intrinsic value of the stock 

options: 

Tranc 

ranche I (23 rd 

99,010 

rd 

ugust, 2007) 

07) 

rd August, 20 

The Exercise Price is the average price of the 

equity shares of the Company in the immediate 

preceding seven days period (at a stock 

exchange as determined by the ESOS 

Compensation Committee) on the date prior to 

the date on which the ESOS Compensation 

Committee finalised the specific number of 

options to be granted to the employees, 

discounted by 30%. 

Exercise Price: ` 606/- per option 

74,257 

9,840 

9,840 

8,160 

Nil 

` 5,963,040/- 

64,417 

16,593 

Nil 

Nil 

Nil 

Tranc 

ranche II (25 th 

69,060 

th 

anuary, 20 

th Januar 

, 2008) 

08) 


equity shares of the Company in the 

immediate preceding seven days period (at a 

stock exchange as determined by the ESOS 

Compensation Committee) on the date prior 

to the date on which the ESOS Compensation 





38,882 

2,590 

2,590 

25,825 

Nil 

` 2,056,460/- 

36,292 

4,353 

Nil 

Nil 

Nil 

ESOS – 2006 

06 

Tranc 

ranche III (8 th 

60,403 

th 

September, 20 

th September 

, 2010) 


equity shares of the Company in the 

immediate preceding seven days period (at a 

stock exchange as determined by the ESOS 

Compensation Committee) on the date prior 

to the date on which the ESOS Compensation 




0) 


Nil 

Nil 

Not Applicable 

Nil 

Nil 

Nil 

60,403 

14,973 

Nil 

Nil 

` 62.72 

Tranc 

ranche IV (20 th 

88,907 

th 

September, 20 

th September 

, 2010) 

0) 

In terms of the Scheme of 

Amalgamation of Samruddhi 

Cement Limited with your 

Company. 


73,796 

9,887 

9,887 

809 

Nil 

` 7,009,883/- 

The Company has calculated the employee compensation cost using the intrinsic value method of accounting to account for options issued under the ESOS – 2006. 

63,909 

14,302 

4,042 

Nil 

Nil 

ranche 

Tranc 

8,199 

he V (20 

(20 th 

th 

September, 20 

th September 

2010) 

0) 

In terms of the Scheme of 

Amalgamation of Samruddhi 

Cement Limited with your 

Company. 

Exercise Price: ` 1,061/- per option 

6,472 

Nil 

Not Applicable 

Nil 

Nil 

6,472 

1,727 

Nil 

Nil 

Nil 

i. the difference between the employee compensation 

cost so computed and the employee compensation 

cost that shall be recognised if it had used the fair 

value of the options shall be disclosed. 

ii. The impact of this difference: 

- on profits 

- EPS 

Employee Compensation Cost: 

- Intrinsic value based ` 0.86 crores 

- fair value based ` 1.64 crores 

Difference ` 0.78 crores 

Reported Adjusted 

Net Profit ` 1,719.23 crores ` 1,718.45 crores 

Basic ` 62.74 ` 62.71 

Diluted ` 62.72 ` 62.69 

- 

- 

8

UltraTec 


m. 

n. 

Weighted average exercise prices of options: 

i. equal or exceed to market price of the stock 

ii. less than market price of the stock 

Weighted average fair value of options 

i. equal or exceed to market price of the stock 

ii. less than the market price of the stock. 

A description of the method used during the year to 

estimate the fair values of options. 

Significant assumptions used during the year to 

estimate the fair values of options including the 

following weighted average information: 

i. Risk – free interest rate 

ii. Expected life 

iii. Expected volatility 

iv. Expected dividend 

v. The price of the underlying share in the market at 

the time of option grant. 

– 

` 695/- 

– 

` 469/- 

Black – Scholes Method 

8% 

Period up to vesting plus the average of the exercise period corresponding to each vesting. 

Implied volatility of the Company’s stock prices on NSE based on the price data of last one year up to the date of grant. Tranche I = 49%; Tranche II = 52%; Tranche III to V = 30%. 

Adjustment of closing price of the Company’s share on the NSE for the expected dividend yield over the expected life of the options (dividend for FY2006-07 and a growth factor have been considered, 

which are then discounted and an average present value of dividend ascertained). 

` 925/- (Average) 

9 ⊳

UltraTec 


DISCLOSURE OF PAR 

ARTICULAR 

TICULARS WITH RESPECT TO CONSERVATION OF ENERGY 


ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO 

AS REQUIRED UNDER THE 

COMPANIES (DISCLOSURE OF PAR 

ARTICULAR 

TICULARS IN THE REPORT OF BOARD OF DIRECTOR 

ORS) RULES 

ULES, 

1988 

A. CONSERVATION OF ENERGY 

GY: 

a) Energy conservation measures tak 

aken 

- Increase in blended cement production. 

- Increase in slag and fly ash absorption in blended cement by optimising clinker quality, 

cement mill operations and using grinding aids. 

- Grinding media optimisation in cement mills. 

b) Additional investments and proposals, if any, , being implemented for reduction of 

consumption of energy 

- Installation of waste heat recovery systems in preheater and cooler. 

- Improvement in efficiency of process fans. 

- Reduction in pressure drop across cyclones, ESP and ducts. 

c) Impact of measures at (a) and (b) above e for reduction of energy consumption and 

consequent impact on the cost of production of goods 

The above measures helped in reduction of power consumption and utilisation of waste and 

shall continue to help in reduction of power and fuel consumption. 

d) Tot 

otal al energy consumption and energy consumption per unit of production 

As per FORM-A of this Annexure. 

B. TECHNOLOGY 

ABSORPTION: 

Efforts made in technology absorption as per FORM-B of this Annexure. 

C. FOREIGN EXCHANGE EARNINGS AND OUTGO: 

The information on foreign exchange earnings and outgo is contained in Schedule 22 (6) and (5) of 

the Accounts. 

10

UltraTec 


FORM - A 

(See Rule 2) 

Form for disclosure of particulars with respect to conservation of energy 

A. POWER AND FUEL CONSUMPTION 

Current 

rent Year 

Previous Year 


0-11 2009-10 

1. Electricity: 

(a) Purchased 

Unit 000 Kwh 543606 361072 

Total Amount ` crores 290.66 181.21 

Rate/unit ` 5.35 5.02 

(b) Own generation* 

( i ) Through Diesel generator 

Units 000 Kwh 71112 61264 

Units(Kwh) per Ltr. of fuel oil 4.22 3.93 

Cost/Unit ` 9.07 6.99 

( ii ) Through Steam Turbine/Generator 

Units 000 Kwh 2251369 1187204 

Units(Kwh) per kg of coal 1.06 

1.03 

Cost/Unit ` 3.71 3.17 

( iii ) Waste Heat Recovery System 

Units 000 Kwh 16025 13997 

Cost/Unit ` 0.55 0.40 

2. Fuel (Slack,Steam & ROM including lighting Coal) 

For Co-generation of Steam & Power 

Quantity Tonnes 2455236 1313764 

Total Cost ` crores 727.7 

.76 311.61 

Average rate `/Tonnes 2964 2372 

For Process in Cement Plants 

Quantity Tonnes 3442080 2201345 

Total Cost ` crores 1786.05 

774.56 

Average rate `/Tonnes 5189 

3519 

3. Furnace Oil (Including Naphtha) 

Quantity K. Ltrs 28763 

22692 

Total amount ` crores 75.00 48.85 

Average rate `/K Ltr 26075 21527 

4. Light Diesel Oil (LDO) 

Quantity K. Ltrs 1292 1112 

Total amount ` crores 5.01 3.99 


5. High Speed Diesel Oil (HSD) 

Quantity K. Ltrs 3893 3154 

Total amount ` crores 14.14 11.00 


B. CONSUMPTION PER UNIT OF PRODUCTION 

Electricity # Kwh /T of Cement 82.02 83.13 

Furnace oil $ Ltr /T of Clinker 0.12 0.11 

Coal Kcal /Kg of Clinker 708 709 

* Excludes Auxillary & Wheeling 

# Excludes non production power consumption 

$ Furnace oil used for kiln light up 

On account of Amalgamation of Samruddhi Cement Limited with your Company w.e.f. 1 st July, 2010 (Appointed 

date), corresponding figures as at 31 st March, 2010 are strictly not comparable. 

11 ⊳

UltraTec 


FORM – B 

(See Rule 2) 

Form for disclosure of particulars with respect to absorption 

RESEARCH 

AND DEVELOPMENT (R&D) 

1. Specific areas in which h R&D carried ried out by the Company 

A. Development 

elopmental projects: 

1. Design & development of an experimental concrete structure of M30 grade using portland 

lime stone cement for durability studies. 

2. Development of high strength cement binder and a cementitious composite resembling 

wood characteristics. 

3. Exploring possibility of beneficiating high sulphate containing lime stones for resource 

securitisation. 

B. Lab. Investigation project: 

1. Evaluation of combustion characteristics of various alternative fuels from industrial and 

agricultural wastes. 

2. Studies on alkali – sulphur volatile cycles during pyro-processing for performance 

optimisation. 

3. Retrofitting of hoppers for solving bulk flowability problems. 

4. Utilisation of high sulphate bearing lime stones for clinkerisation. 

5. Improvement in initial strength of slag cement by using additives. 

6. Possibility of utilisation of various alternative raw materials of industrial origin in cement 

manufacturing. 

C. Plant activities/services: 

1. Standardisation & calibration of laboratories at Units. 

2. Analytical Services and process diagnostic studies for Group Units. 

3. Quality benchmarking of group cement and competitors. 

2. Benefits derived ed as a result of the above e R&D 

1. Uniform cement quality to customers. 

2. Enhancing usage of mineral admixtures addition in blended cement. 

3. Development of portland lime stone cement. 

3. Fut 

uture ure plan of action 

1. Design & development of nanometric additives for concrete applications. 

2. Development of a simulation platform for pyro- processing using computational fluid dynamics. 

3. Design & development of multi-component blended cement. 

12

UltraTec 


4. Expenditure on R&D 

(` in Crores) 



a. Capital expenditure 10.28 1.34 

b. Recurring expenditure 26.20 13.20 

c. Total expenditure 36.48 14.54 

d. Total R&D expenditure as % of turnover 0.28 0.21 

TECHNOLOGY 

ABSORPTION, ADAPTION 

APTION AND INNOVATION 

1. Efforts in brief, , made towards technology absorption, adaption and innovation: 

• Training of plant and R&D personnel on refractory, process optimisation, selection and 

maintenance of machinery. 

• Participation in National and International seminars. 

2. Benefits derived ed as results of the above e efforts: 

• Improvement in the life of Refractory. 

• Improvement in mill productivity. 

• Increase in the usage of alternative fuels. 

3. Information regarding technology imported during the last 5 years: 

Nil 

13 ⊳

UltraTec 


AUDI 

UDITOR 

ORS’ S’ CERTIFICA 

TIFICATE TE ON CORPORATE TE GOVERNANCE 

To the Member of 

UltraTec 


We have examined the compliance of the conditions of Corporate Governance by UltraTec 

ech Cement 

Limited for the year ended on March 31, 2011, as stipulated in Clause 49 of the Listing Agreement of 

the said Company with the Stock Exchange. 

The compliance of the condition of Corporate Governance is the responsibility of the Management. 

Our examination was limited to procedures and implementations thereof, adopted by the Company 

for ensuring the compliance of the conditions of Corporate Governance. It is neither an audit nor an 

expression of opinion on the financial statements of the Company. 

In our opinion and to the best of our information and according to the explanations given to us, and 

the representations made by the Directors and the Management, we certify that the Company has 

complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing 

Agreement. 

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 

Firm Regn. No: 104768W 

Atul B. Desai 

(Partner) 

Membership No. 30850 

Place: Mumbai 

Date: 26 th April, 2011 

14

UltraTec 


Financials 

15 ⊳

UltraTec 


To The Members of UltraTec 


1. We have audited the attached Balance Sheet of ULTRA 

TRATECH TECH CEMENT LIMITED 

(“the Company”) 

as at March 31, 2011, the Profit and Loss Account and the Cash Flow Statement of the Company 

for the year ended on that date, both annexed thereto, in which are incorporated the Returns 

from the Jafrabad, Magdalla and Ratnagiri branches (three branches) audited by the branch 

auditors. 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 give 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 that: 

(i) 

(ii) 

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; 

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 and proper returns adequate for the 

purposes of our audit have been received from the three branches audited by the branch 

auditors; 

(iii) the reports on the accounts of the Jafrabad, Magdalla and Ratnagiri branches audited by the 

branch auditors have been forwarded to us and have been dealt with by us in preparing this 

report; 

(iv) 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 and the audited branch Returns; 

(v) 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; 

(vi) 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: 

(a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 

2011; 

(b) in the case of the Profit and Loss Account, of the profit of the Company for the year 

ended on that date; and 

(c) in the case of the Cash Flow Statement, of the cash flows of the Company for the year 

ended on that date. 

16

UltraTec 


5. On the basis of the written representations received from the Directors as on March 31, 2011 

taken on record by the Board of Directors, we report that none of the Directors is disqualified as 

on March 31, 2011 from being appointed as a director in terms of Section 274(1)(g) of the 

Companies Act, 1956. 

For DELOITTE HASKINS & SELLS 


(Registration No.117366W) 

For G. P. . KAPADIA ADIA & Co. 


(Registration No.104768W) 

B. P. Shroff Atul B. Desai 

Partner 

Partner 

(Membership No. 34382) (Membership No. 30850) 

Mumbai, April 26, 2011 

17 ⊳

UltraTec 


(Ref 

efer 

erred red to in paragraph 3 of our report of even en 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 paragraph 4 of the Order are not applicable. 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

(viii) 

(ix) 

In respect of its fixed assets: 

a. The Company has maintained proper records showing full particulars, including quantitative 

details and situation of fixed assets. 

b. Some of the fixed assets were physically verified during the year by the Management in 

accordance with a program of verification in terms of which all the fixed assets are 

physically verified over a period of three years, which in our opinion, is reasonable having 

regard to the size of the Company and nature of its fixed assets. 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 year, 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. 

In respect of its inventories: 

a. As explained to us, inventories were physically verified during the year by the Management 

at reasonable intervals. In respect of inventory lying with third parties, confirmations have 

been obtained from those parties. 

b. In our opinion and according to the information and explanations 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. 

According to the information and explanations given to us, 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 during the year. 

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 the 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 weaknesses 

in such internal control system. 

To the best of our knowledge and belief and according to the information and explanations 

given to us, there were no contracts or arrangements, particulars of which needed to be 

entered in the Register maintained under Section 301 of the Companies Act, 1956. 

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. 

In our opinion, the Company has an adequate internal audit system commensurate with the 

size of the Company and the nature of it’s business. 

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 manufacture of cement and are of the 

18

UltraTec 


(x) 

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 determine 

whether 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. 

According to the information and explanations given to us in respect of statutory dues: 

a. The Company has generally been regular in depositing undisputed statutory dues, including 

Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, 

Income-Tax, Sales-Tax, Value Added Tax, Wealth Tax, Service Tax, Custom Duty, Excise 

Duty, Cess and other material statutory dues applicable to it with the appropriate authorities 

during the year. 

b. There were no undisputed amounts payable in respect of Income-tax, Sales Tax, Value 

Added Tax, Wealth Tax, Custom Duty, Excise Duty, Cess and other material statutory dues 

in arrears as at March 31, 2011 for a period of more than six months from the date they 

became payable. 

c. Details of dues of Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Service Tax, 

Customs Duty, Excise Duty and Cess which have not been deposited as on March 31, 

2011 on account of disputes are given below: 

Name of stat 

atute 

Nature of 

the dues 

For 

orum where 

Period to which 

dispute 

the amount relates 

is pending (Assessment 

Years) 

Amount 

(` in Crores) 

Sales Tax Act / Sales Tax and Supreme Court 1999-2000 23.11 

Value Added interest 2000-2006 

Tax Act 

High Court 1994-1999 74.20 

2000-2004 

2005-2006 

2005-2007 

Tribunal(s) 1988-1996 44.69 

1999-2002 

2002-2004 

2005-2008 

Appellate Authorities 1985-1990 42.40 

1992-1998 

1997-2006 

2006-2009 

2009-2010 

2010-2011 

Assessing Officers 1990-1998 2.06 

2000-2009 

2009-2011 

Central Excise Excise Duty, Supreme Court 1995-1999 9.20 

Act penalty and 1999-2000 

interest 2001-2002 

2002-2004 

2007-2008 

High Court 1998-1999 25.94 

2000-2003 

2004-2005 

19 ⊳

UltraTec 


Name of statute Nature of Forum where Period to which Amount 

the dues dispute the amount relates 

is pending (Assessment Years) (` in Crores) 

Tribunal(s) 1995-1996 70.22 

1996-1997 

2003-2005 


Appellate Authorities 1991-2010 12.65 


Assessing Officers 2005-2011 0.41 

Service Tax Act Service Tax High Court 2006-2008 0.06 

Tribunal(s) 1997-2009 38.62 






Assessing Officers 2006-2007 9.05 


Customs Act Custom Duty Supreme Court 2001-2002 0.11 

and penalty 

High Court 2002-2005 15.18 

2005-2006 

Tribunal(s) 2006-2010 2.73 


Cess(Excluding Supreme Court 2001-2011 24.87 

Education Cess) 

High Court 2005-2011 46.88 

Others 2006-2011 3.28 

Income Tax Act Income Tax High Court 2001-2006 0.47 

Assessing Officer 2005-2006 0.09 

(xi) 

(xii) 

(xiii) 

(xiv) 

In our opinion and according to the information and explanations given to us, and based on the 

records of the Company, the Company has not defaulted in the repayment of dues to banks, 

financial institutions and debenture holders. 

In our opinion and according to the information and explanations given to us, the Company has 

not granted any loans and advances on the basis of security by way of pledge of shares, 

debentures and other securities. 

In our opinion and according to the information and explanations given to us, the Company has 

given guarantees for loans taken by subsidiaries from banks or financial institutions. The terms 

and conditions of which are not prejudicial to the interest of the Company. 

To the best of our knowledge and belief and according to the information and explanations 

given to us, in our opinion, the term loans availed by the Company were, applied by the 

Company during the year for the purposes for which they were obtained, other than temporary 

deployment pending application. 

20

UltraTec 


(xv) 

(xvi) 

(xvii) 

(xviii) 

(xix) 

According to the information and explanations given to us, and on an overall examination of the 

Balance Sheet of the Company, funds raised on short-term basis have not been used during 

the year for long-term investment. 

According to the information and explanations given to us and the records examined by us, 

during the year, the Company has not made preferential allotment of shares to parties and 

companies covered in the Register maintained under Section 301 of the Companies Act, 1956. 

According to the information and explanations given to us and the records examined by us, 

during the period covered by our audit report, the Company has not issued any debentures. 

During the year, the Company has not raised money by issue of shares to public. 

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 explanation 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 G. P. . KAPADIA ADIA & Co. 




Partner 

Partner 



21 ⊳

UltraTec 


` in Crores 

As at 

Schedules 

March 31, 2010 

SOUR 

URCES OF FUNDS 

Shareholders’ ’ Funds 

Share Capital 

1A 274.04 

124.49 

Employees Stock Options Outstanding 

1B 4.78 1.99 

Reserves and Surplus 2 10,387 

0,387.22 

4,482.17 

10,666.04 

4,608.65 

Loan Funds 

Secured Loans 3 2,789.76 854.19 

Unsecured Loans 4 1,354.84 750.33 

4,144.60 

44.60 1,604.52 

Defer 

erred 

red Tax Liabilities (Net) 1,730.05 830.73 

TOTAL 

AL 16,540.69 

7,043.90 

APPLICATION OF FUNDS 

Fixed 

ed Assets 

5 

Gross Block 17,942.27 

8,078.14 

Less: Depreciation 6,542.02 3,136.46 

Net Block 11,40 

1,400.25 

0.25 4,941.68 

Capital Work-in-Progress 1,105.32 

259.37 

12,505.57 

5,201.05 

Investments 

6 3,730.32 1,669.55 

Current 

rent Assets, Loans and Adv 

dvances 

Inventories 7 1,956.52 821.70 

Sundry Debtors 8 602.29 215.83 

Cash and Bank Balances 9 144.79 

83.73 

Loans and Advances 10 1,053.88 351.13 

Assets held for Disposal 1.22 

.22 - 

3,758.70 1,472.39 

Less: Current rent Liabilities and Pro 

rovisions 

Current Liabilities 11 2,880.41 1,138.08 

Provisions 12 573.49 161.01 

3,453.90 1,299.09 

Net Current 

rent Assets 

304.80 173.30 

TOTAL 

16,540.69 

7,043.90 

Accounting Policies and Notes on Accounts 

21 & 22 

Schedules referred above form an integral part of the Accounts. 

In terms of our report attached. 


KUMAR MANGALAM BIRLA 

Chairman 

For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. K. C. BIRLA R. C. BHARGAVA 

Chartered Accountants Chartered Accountants Sr. Executive President & CFO Director 

B. P. SHROFF ATUL B. DESAI S. K. CHATTERJEE O. P. PURANMALKA 

Partner Partner Company Secretary Whole-time Director 


22

UltraTec 


` in Crores 

Previous 

Schedules 

Year 

INCOME 

Gross Sales 14,858.60 

7,729.13 

Less: Excise Duty 1,648.69 679.45 

Net Sales 13,209.91 

7,049.68 

Interest and Dividend Income 13 122.34 

56.21 

Other Income 14 164.33 

65.81 

Increase / (Decrease) in Stocks 15 61.84 

(2.27) 

13,558.42 

7,169.43 

EXPENDITURE 

Raw Materials Consumed 16 1,805.33 960.61 

Manufacturing Expenses 17 4,547.98 

2,148.87 

Purchase of Finished Products 122.1 

22.18 63.74 

Payments to and Provisions for Employees 18 666.50 252.94 

Selling, Distribution, Administration 

and Other Expenses 19 3,597.91 

.91 1,653.53 

Interest and Finance Charges 20 277.1 

.11 117.52 

Depreciation and Obsolescence 765.73 

388.08 

11,782.7 

1,782.74 5,585.29 

Less: Captive Consumption of Cement {Net of (10.51) 

(4.02) 

Excise Duty ` 9.35 Crores, (Previous Year ` 3.46 Crores)} 

11,772.23 

1,772.23 5,581.27 

Profit Bef 

efore 

Tax ax Expenses 1,786.19 1,588.16 

Income Tax Expenses 

Provision for Current Tax {including provision for 510.72 

387.25 

Wealth Tax ` 1.72 Crores, (Previous Year ` 0.50 Crore)} 

Excess tax provision reversal related to earlier years (125.52) 

(0.13) 

Deferred Tax (Credit) / Charge (3.24) 107.80 

Profit 

After 

Tax 

1,404.23 1,093.24 

Balance brought forward from Previous Year 2,729.37 2,438.40 

Profit 

Available for 

Appropriation 4,133.60 

3,531.64 

Appropriations 

Proposed Dividend 164.42 

74.69 

Corporate Dividend Tax 26.67 12.41 

Debenture Redemption Reserve 58.92 (34.83) 

General Reserve 1,100.0 

0.00 750.00 

Balance carried to Balance Sheet 2,783.59 2,729.37 

4,133.60 

3,531.64 

Basic Earnings Per Equity Share (in ` ) {See Note B 21 (A)} 62.74 87.82 

Diluted Earnings Per Equity Share (in ` ) {See Note B 21 (B)} 62.72 87.79 


21 & 22 





Chairman 






23 ⊳

UltraTec 


A 

B 

C 

Cash Flow from Operating Activities: 

` in Crores 

March 31, 2011 March 31, 2010 

Profit Bef 

efore tax 

1,786.19 1,588.16 

Adjustments for: 


388.08 

Compensation Expenses under Employees Stock Options Scheme 0.86 0.34 

Provision for Doubtful Debts and Advances / (Written back) (3.29) - 

Bad Debts Written-off 0.09 0.44 

Excess Provision written back (Net) (32.50) (12.56) 

Provision for Retirement Benefits 31.65 

12.88 

Provision for Mines Restoration 1.85 

1.73 

Interest and Dividend Income (122.34) 

(56.21) 

Interest and Finance Charges 277.1 


Unrealised Foreign Exchange (Gain) (1.20) 

(13.91) 

Unrealised loss on Investments - 1.07 

(Profit)/Loss on Sale of Fixed Assets 0.04 (0.13) 

(Profit)/Loss on Sale of current Investment (18.36) 

(2.02) 

Operating Profit before 

Working Capital al Changes 2,685.83 2,025.39 


(Increase)/decrease in Inventories (119.61) 

(129.73) 

(Increase)/decrease in Sundry Debtors (96.49) (22.33) 

(Increase)/decrease in Loans and Advances (20.94) 32.54 

Increase/(decrease) in Trade Payables and Other Liabilities 144.51 

55.32 

Cash Generated from Operations 2,593.30 1,961.19 

Taxes paid (519.04) 

(389.11) 

Expenditure for Mines Restoration - (0.15) 

Net Cash Generated from Operating Activities (A) 2,074.26 

1,571.93 

Cash Flow from Investing 

Activities: 

Purchase of Fixed Assets (1,222.77) (275.17) 

Sale of Fixed Assets 5.91 1.10 

Expenditure for Cost on Assets transferred from SCL, pursuant to Scheme of Amalgamation (25.00) 

0) - 

Purchase of Long Term Investments (0.05) - 

Investment in Subsidiaries & Joint Ventures (190.08) 

(7.56) 

(Increase)/decrease in Current Investments (351.67) 

(628.26) 

Profit on Sale of Current Investments 18.36 

2.02 

Interest and Dividend Received 116.39 

56.21 

Net Cash used in Investing 

Activities (B) (1,648.91) (851.66) 

Cash Flow from Financing Activities: 

Proceeds from Issue of Share Capital 1.41 

0.07 

Repayment of Long Term Borrowings (298.33) (300.00) 

Proceeds from Long Term Borrowings 122.56 

32.89 

Proceeds /(Repayment) of Short Term Borrowings (net) 177 

77.02 

(255.23) 

Interest and Finance Charges paid (293.01) 

(145.94) 

Dividend Paid (120.48) 

(62.24) 

Corporate Dividend Tax (20.02) (10.58) 

Net Cash Generated / (Used) from Financing Activities (C) (430.85) (741.03) 

Net Increase/(Decrease) in Cash and Cash Equivalents (A + B + C) (5.50) (20.76) 

Cash and Cash Equivalents at the Beginning of the Year 

83.73 104.49 

Cash and cash equivalents transfer 

erred red from SCL as on 01.07 

.07.1 

.10, 

66.56 - 

pursuant to Scheme of Amalgamation (Ref 

efer er Note B 4) 

Cash and Cash Equivalents at the End of the Year 

ear 144.79 

83.73 

Notes: 

1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard - 3 notified under the 

Companies (Accounting Standard) Rules, 2006. 

2. Purchase of fixed assets includes movements of capital work-in-progress during the year. 

3. Cash and cash equivalents represent cash and bank balances. 


21 

Schedule referred above form an integral part of the Accounts. 




Chairman 






24

UltraTec 


` in Crores 

SCHEDULE 1A 

Previous 

SHARE CAPITAL 

AL 

Year 

Authorised 

280,000,000 Equity shares of ` 10 each (Previous Year 130,000,000) 280.00 130.00 

Issued, Subscribed and Paid-up 

274.04 

124.49 

274,041,665 Equity shares of ` 10 each fully paid-up. (Previous Year 124,487,079) 

(a) 99,521,437 Equity shares of ` 10 each issued as fully paid-up for 

acquiring the Cement business pursuant to the Scheme of 

Arrangement with Larsen & Toubro without payment being received 

in cash. (Previous Year 99,521,437) 

(b) 87,258 Equity shares of ` 10 each issued as fully paid-up, to shareholders 

of erstwhile Narmada Cement Company Limited (NCCL) pursuant to 

the Scheme of Amalgamation without payment being received in cash. 

(Previous Year 87,258) 

(c) 149,533,469 Equity shares of ` 10 each issued as fully paid-up, to 

shareholders of erstwhile Samruddhi Cement Limited (SCL) pursuant 

to the Scheme of Amalgamation without payment being received in 

cash (Previous Year Nil).{ Excluding issue of 8,518 Equity Shares kept 

in abeyance against shares of Grasim Industries Limited. (Previous 

Year Nil)} 

(d) 165,335,150 Equity shares are held by Grasim Industries Limited 

(Holding Company). (Previous Year 68,192,294) 

(e) 5,769,289 Equity shares represented by Global Depository Receipts. 

(Previous Year 174,278) 

274.04 

124.49 

SCHEDULE 1B 

EMPLOYEES STOCK OPTIONS OUTS 

TSTANDING 

Employees Stock Options Outstanding 6.35 2.21 

Less: Deferred Employees Compensation Expenses 1.57 

.57 0.22 

4.78 1.99 

Outstanding Employees Stock Options exercisable into 268,468 Equity Shares of ` 10 each fully paid up 

(Previous Year 132,885). {See Note B 20 (b)} 

SCHEDULE 2 

RESERVES 

AND SURPLUS 

` in Crores 

Balance Transferred from Additions Deduction/ Balance 

as at SCL as on 01.07.2010, during Adjustments as at 

31 st pursuant to scheme the during 31 st 

March, 2010 of Amalgamation year the year March, 2011 

Capital Reserve 25.02 0.30 - - 25.32 

Cash Subsidy Reserve 0.10 - - - 0.10 

Debenture Redemption Reserve 90.72 46.25 58.92 - 195.89 

General Reserve 

Securities Premium Account 

1,636.86 

0.10 

4,643.45* 

- 

1,100.00 

1.91# 

- 

- 

7,380.31 

2.01 

Surplus as per Profit and Loss Account 2,729.37 - 1,404.23 (1,350.01) 2,783.59 

4,482.17 4,690.00 2,565.06 (1,350.01) 

1) 10,387 

0,387.22 

Previous Year 3,475.93 - 1,883.51 (877.27) 4,482.17 

* Reser 

eserve e Reconciliation: (See Note B 4) 

Excess of assets over liabilities transferred from Samruddhi Cement Limited pursuant to the scheme of 

amalgamation 4,851.85 

Add: Gain on account of Employees Stock Options transferred 0.04 

Less: Issue of Equity Shares to the Shareholders of erstwhile Samruddhi Cement Ltd, pursuant to scheme 

of amalgamation (149.53) 

Less: Provision for Costs in relation to transfer of assets pursuant to Scheme of Amalgamation (Net of Tax) (58.91) 

4,643.45 

# On account of Employees Stock Options exercised during the year. 

25 ⊳

UltraTec 


` in Crores 

SCHEDULE 3 

Previous 

SECURED LOANS 

Year 

Non-Convertible Debentures { Due within a year 

` 200.0 

0.00 0 Crores; 

(Pre 

revious year 

` Nil )} {See Note B 7(a)} 1,037.44 

536.33 

Loans from Banks: 

Foreign Currency Loan {Due within a year ` 858.64 Crores; 1,095.46 285.16 

(Previous Year ` Nil)} {See Note B 7(b)} 

Rupee Term Loans {Due within a year ` Nil; (Previous Year ` Nil)} 450.00 - 

{See Note B 7(c)} 

Cash Credits / Working Capital Borrowings from Banks Secured by 198.66 

32.70 

Hypothecation of Stocks and Book Debts of the Company 

Other Loans: 

Sales Tax Deferment Loans {Due within a year ` 0.27 Crore; 8.20 - 

(Previous Year ` Nil)} {See Note B 7(d)} 

2,789.76 854.19 

SCHEDULE 4 

UNSECURED LOANS 

Short Term 

From Banks 115.77 

13.47 

Long 

Term 

From Banks {Due within a year ` 234.41 Crores; (Previous Year ` 123.48 Crores)} 760.86 

320.98 

From Others 5.96 - 

Sales Tax Deferment Loans {Due within a year ` 16.25 Crores; 472.25 (Previous Year ` 0.57 Crore)} 

415.88 

1,354.84 750.33 

SCHEDULE 5 

FIXED ASSE 

SSETS 

Particulars 

` in Crores 

Gross Block 

Depreciation 

Net Block 

As at Assets Additions Deductions/ As at As at Cum. Dep For the Deductions/ Upto 

As at 

As at 

March 31, transferred Adjustments March 31, March 31, transferred year Adjustments March 31, 

March 31, March 31, 

2010 from SCL 2011 2010 from SCL 2011 2011 2010 

01.07.2010 01.07.2010 

(A) Tangible 

Assets 

Freehold Land 170.73 523.90 156.27 0.24 850.66 - - - - - 850.66 170.73 

Leasehold Land 19.84 98.68 8.25 0.23 126.54 

7.33 19.75 5.07 0.02 32.13 94.41 12.51 

Buildings 584.12 541.47 123.57 1.71 1,247.45 

179.33 97.60 31.54 0.83 307.64 

939.81 404.79 

Railway Sidings 168.83 115.78 7.89 0.17 292.33 90.28 47.47 12.16 - 149.91 

142.42 

78.55 

Plant and Machinery 6,908.07 7,654.50 474.96 43.76 14,993.77 

2,693.15 2,408.92 668.62 35.50 5,735.19 9,258.58 4,214.92 

Furniture, Fixtures & 118.51 129.42 30.91 11.80 267.04 

81.57 94.79 23.45 11.21 188.60 

78.44 36.94 

Office Equipments 

Jetty 80.60 - - - 80.60 70.05 - 6.44 - 76.49 

4.11 10.55 

Vehicles 16.64 19.50 10.20 3.79 42.55 9.50 7.89 5.24 2.61 20.02 22.53 7.14 

Tot 

otal 

Tangible 

Assets 

8,067.34 

9,083.25 812.05 

61.70 

17,90 

,900.94 

0.94 3,131 

31.21 

2,676.42 

6.42 752.52 50.17 6,509.98 11,390.96 

1,390.96 4,936.13 

(B) 

Intangible 

Assets 

Software 10.80 26.05 4.48 - 41.33 

5.25 18.99 7.80 - 32.04 9.29 5.55 

Tot 

otal 

al Assets (A+B) 8,078.14 9,109.30 

816.53 

61.70 

17,942.27 

3,136.46 

36.46 2,695.41 760.32 

50.17 6,542.02 11,40 

1,400.25 

0.25 4,941.68 

Previous year 7,401.02 - 695.04 17.92 8,078.14 2,765.33 - 386.91 15.78 3,136.46 

Add: Capital Work-in-Progress {includes advances of ` 419.47 Crores; (Previous Year ` 51.09 Crores)} 1,105.32 

259.37 

12,505.57 

5,201.05 

Notes : 

(A) Depreciation for the year 760.32 

386.91 

Add: Obsolescence 5.58 1.17 

Less: Depreciation transferred to Pre-operative Expenses (0.17) 

- 

Depreciation as per Profit and Loss Account 765.73 

388.08 

(B) 1. Leasehold Land includes Mining Rights. 

2. Cost of Plant and Machinery includes ` 55.43 Crores (Previous year ` 29.89 Crores) relating to railway wagons given on operating lease to the Railways under “Own Your 

Wagon Scheme”. 

3. Fixed Assets includes assets costing ` 238.63 Crores (Previous Year ` 150.94 Crores) not owned by the Company. 

4. Buildings include ` 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. 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. 

6. Pursuant to the Scheme of Amalgamation with SCL, the above Gross Block (Assets transferred from SCL) as on 01.07.2010 includes Research and Development Assets 

(Buildings, Plant and Machinery, Furniture Fixtures & Office Equipments and Intangible Assets) of ` 12.34 Crores (Previous Year ` Nil) and Net Block as on 01.07.2010 of 

` 9.67 Crores (Previous Year ` Nil). Additions for the Research and Development Assets during the period is ` 2.26 Crores (Previous Year ` Nil ). 

7. The title deeds of some of the immovable properties transferred pursuant to the Scheme of Arrangement / Amalgamation are yet to be transferred in the name of the 

Company. 

26

UltraTec 


` in Crores 

Previous 

SCHEDULE 6 

Year 

INVESTMENTS 

LONG - TERM (Unquoted, at cost, fully paid, other than trade) 

Government and Trust Securities - - 

(` 42,000, Previous Year ` 10,000) Pledged as security deposit 

Shares in Subsidiary Companies 

50,000 Equity Shares of ` 10 each in Dakshin Cements 1.21 

1.21 

Limited (Previous Year 50,000) 

40,000,000 Equity Shares of Sri Lankan Rupees 10 each in 

UltraTech Cement Lanka (Pvt.) Limited. 23.03 23.03 

(Previous Year 40,000,000) 

15,477,756 Equity Shares of UAE Dirham 10 each in 193.97 

7.56 

UltraTech Cement Middle East Investments Limited 

(Previous Year 600,000 ) 

50,000 Equity Shares of ` 10 each in Harish Cement 0.10 - 

Limited. (Previous Year Nil) 

218.31 

31.80 

Shares in Joint 

Vent 

entures 

1,065,580 Equity Shares of ` 10 each in Madanpur 1.07 

.07 1.07 

(North) Coal Company (P) Limited. 


8,096,050 Equity Shares of ` 10 each in Bhaskarpara 8.10 - 

Coal Company Limited. (Previous Year Nil) 

9.17 1.07 

Others 

2,000,000 4.5% Cumulative Non-Convertible 20.00 20.00 

Redeemable Preference Shares of ` 100 each in 

Aditya Birla Health Services Limited (Previous Year 2,000,000) 

50,000 Equity Shares of ` 10 each in Aditya Birla Ports Limited 0.05 - 

(Previous Year Nil) 

247.53 

.53 52.87 

CURRENT INVESTMENTS (At lower er of cost or Fair 

air Value) 

Fixed Deposits with Financial Institutions - 10.00 

Units of Debt Schemes of Mutual Funds: 

Description 

No. of 

Face 

Units Value 

Birla Sun Life Floating Rate Fund - 

Short Term- IP-Growth 7,695,327 10 10.0 

0.00 - 

Birla Sun Life Dynamic Bond Fund-Dividend 

(Previous Year 298,216,880 units) - 10 - 309.83 

Birla Sun Life Fixed Term Plan Series CD- 

Growth (Previous Year 50,000,000 units) 50,000,000 10 50.00 50.00 

Birla Sun Life Fixed Term Plan Series CE -Growth 50,000,000 10 50.00 - 

Birla Sun Life Fixed Term Plan- Series CF -Growth 75,000,000 10 75.00 - 

Birla Sun Life Fixed Term Plan Series CG Growth 100,027,202 10 100.03 

0.03 - 

Birla Sun Life Fixed Term Plan Series CI- Growth 100,000,000 10 100.0 

0.00 - 

Birla Sun life Fixed Term Plan Series CJ Growth 30,015,551 10 30.02 - 

Birla Sun Life Fixed Term Plan Series CK Growth 60,000,000 10 60.00 - 

Birla Sun Life Fixed Term Plan -Series CL Growth 125,000,000 10 125.0 

25.00 - 

Birla Sun Life Fixed Term Plan -Series CM Growth 100,000,000 10 100.0 

0.00 - 

Birla Sun Life Fixed Term Plan Series CO Growth 200,000,000 10 200.0 

0.00 - 

Birla Sun Life Fixed Term Plan Series CR- Growth 100,000,000 10 100.0 

0.00 - 

27 ⊳

UltraTec 


CURRENT INVESTMENTS (At lower of cost or fair value) 

(Continued)..... 


Description 

No. of 

Face 

Units Value 

` in Crores 

Previous 

Year 

Birla Sun Life Fixed Term Plan Series CT- Growth 200,000,000 10 200.0 

0.00 - 

Birla Sun Life Fixed Term Plan Series CW - Growth 50,000,000 10 50.00 - 

Birla Sun Life Floating Rate Long Term Fund- 

Dividend (Previous Year 149,688,564 units) - 10 - 150.15 

Birla Sun Life Floating Rate Long Term Fund- Growth 


Birla Sun Life Income Plus Plan- Dividend 


Birla Sun Life Medium Term Plan- INSTL- 

Growth (Previous Year 16,254,179 units) 143,440,467 10 150.0 

50.00 16.22 

Birla Sun Life Quarterly Interval Plan Series I- 


Birla Sun Life Quarterly Interval Plan Series II - 


Birla Sun Life Savings Fund- Growth 


Birla Sun Life Short Term FMP - Series 7-Dividend 50,000,000 10 50.00 - 

Birla Sun Life Short Term FMP - Series 9 Dividend 50,000,000 10 50.00 - 

Birla Sun Life Short Term FMP Series 13 Dividend 50,000,000 10 50.00 - 

Birla Sun Life Short Term FMP- Series -6- Dividend 25,000,000 10 25.00 - 

Birla Sun Life Short Term Fund- Growth 


Birla Sun Life Ultra Short Term Fund- Institutional - 

Growth 149,529,218 10 174.69 

- 

DSP BlackRock FMP - 12M Series 14- Growth 25,000,000 10 25.00 - 

Fidelity Fixed Maturity Plan - Series 4- 

Plan E-Growth 25,003,905 10 25.00 - 

Fidelity Fixed Maturity Plan -Series 3- 

Plan F- Growth 10,001,390 10 10.0 

0.00 - 

Fidelity Fixed Maturity Plan -Series 4- 

Plan F-Growth 10,000,000 10 10.0 

0.00 - 

Fidelity Fixed Maturity Plan - Series 5 - 

Plan A- Growth 10,000,000 10 10.0 

0.00 - 

Fidelity Fixed Maturity Plan - Series 5 - 

Plan E - Growth 25,000,000 10 25.00 - 

HDFC Fixed Maturity Plan 13M October 2009- 

Growth (Previous Year 20,000,000 units) - 10 - 20.00 

HDFC Fixed Maturity Plan 370D June 2010 (1)- 

Dividend- Series XV 15,000,000 10 15.0 

5.00 - 

HDFC Fixed Maturity Plan 370D November 2010 

(1 ) -Growth- Series XVII 40,000,000 10 40.00 - 

HDFC Fixed Maturity Plan 370D September 2010 

(2) -Growth - Series XV 15,000,000 10 15.0 

5.00 - 

HDFC Floating Rate Income Fund-Long Term Plan- 


ICICI Prudential Active Income & PSU Bond Fund - 


ICICI Prudential Fixed Maturity Plan - Series 49 

Plan A- Growth (Previous Year 10,000,000 units) - 10 - 10.00 

ICICI Prudential Fixed Maturity Plan - Series 49 

28

UltraTec 





Description 

No. of 

Units 

Face 

Value 

` in Crores 

Previous 

Year 

Plan B- Growth (Previous Year 10,000,990 units) - 10 - 10.00 

ICICI Prudential FMP - Series 51 - 13M Plan-C 


ICICI Prudential FMP - Series 51 - 14M Plan- D 


ICICI Prudential FMP - Series 51- 1Y Plan A 

Growth (Previous Year 15,000,000 units) - 10 - 15.00 

ICICI Prudential FMP -Series 53 - 1Y Plan A Growth 20,000,000 10 20.00 - 

ICICI Prudential FMP -Series 53 - 1Y Plan B Growth 25,000,000 10 25.00 - 

ICICI Prudential FMP -Series 53 - 1Y Plan E Growth 25,000,000 10 25.00 - 

ICICI Prudential FMP -Series 53 - 1Y Plan F Growth 25,000,000 10 25.00 - 

ICICI Prudential FMP Series 53- 6M Plan A- 

Dividend 30,000,000 10 30.00 - 



ICICI Prudential FMP -Series 55 - 1Y Plan F Growth 50,000,000 10 50.00 - 

ICICI Prudential FMP -Series 56 - 1Y Plan B Growth 25,000,000 10 25.00 - 

ICICI Prudential Interval Half Yearly II- 

Inst- Dividend 50,002,313 10 50.02 - 

ICICI Prudential Interval Annual Interval I- Inst. 

Growth 49,985,584 10 50.02 - 

ICICI Prudential Interval Annual Interval Plan III - 

Inst. Growth 17,999,283 10 18.0 

8.00 - 

ICICI Prudential Interval Annual Interval Plan IV - 

Inst. Growth 17,159,933 10 20.00 - 

ICICI Prudential MTP Premium Plus- Dividend 


ICICI Prudential Short Term Income Plan- 


ICICI Prudential Ultra Short Term Fund- Growth 


IDFC Fixed Maturity Plan - Yearly Series 34- Growth 20,000,000 10 20.00 - 

IDFC Fixed Maturity Plan Yearly Series 37- Growth 25,000,000 10 25.00 - 

IDFC Fixed Maturity Plan Yearly Series 40 Growth 15,000,000 10 15.0 

5.00 - 

IDFC Fixed Maturity Plan-Yearly Series- 32 Dividend 50,000,000 10 50.00 - 

IDFC FMP - Half Yearly Series 12- Dividend 20,002,980 10 20.00 - 

IDFC FMP - Yearly Series 42- Growth 40,000,000 10 40.00 - 

IDFC Short Term Plan- Dividend 

(Previous Year 11,089,285 units) - 10 - 11.07 

JP Morgan India Fixed Maturity Plan 400D 

Series 1- Dividend 10,000,000 10 10.0 

0.00 - 

JPMorgan India Fixed Maturity Plan 367D 

Series 1- Growth 10,000,000 10 10.0 

0.00 - 

Kotak Bond Short Term Plan- Dividend 


Kotak Credit Opportunities Fund- Growth 10,000,000 10 10.0 

0.00 - 

Kotak FMP 18M Series 2- Growth 

(Previous Year 10,000,000 units) 10,000,000 10 10.0 

0.00 10.00 

Kotak FMP 370 Days Series 7- Growth 20,002,383 10 20.00 - 

Kotak FMP Series 28 -Growth 20,000,000 10 20.00 - 

29 ⊳

UltraTec 




` in Crores 


Previous 

Year 

Description 

No. of 

Face 

Units 

Value 

Kotak FMP Series 29- Growth 25,000,000 10 25.00 - 




Kotak Quarterly Interval Plan -Series 4- Dividend 


Kotak Quarterly Interval Plan -Series 6- Dividend 


Kotak Quarterly Interval Plan -Series 8 - Dividend 


L&T FMP - II (January 90 D A) - Dividend 10,000,000 10 10.0 

0.00 - 

LIC MF Floating Rate Fund- Growth 


LIC MF Savings Plus Fund - Growth 


Principal Money Manager Fund- IP- Dividend 


Principal PNB FMP (FMP- 69) 91 Days- 

Series XXVIII- Regular- Dividend 5,000,000 10 5.00 - 

Reliance Fixed Horizon Fund - XIII- Series 5- 

Growth (Previous Year 10,000,000 units) 10,000,000 10 10.0 

0.00 10.00 

Reliance Fixed Horizon Fund - XIX - Series 1- Growth 30,000,000 10 30.00 - 



Reliance Fixed Horizon Fund - XVI Series 1- Growth 20,002,505 10 20.00 - 

Reliance Fixed Horizon Fund - XVI Series 2- Growth 50,007,437 10 50.01 - 

Reliance Fixed Horizon Fund - XVI Series-5 Growth 25,003,523 10 25.00 - 

Reliance Fixed Horizon Fund - XVII Series 1- Growth 25,000,000 10 25.00 - 



Reliance Fixed Horizon Fund - XVIII-Series 7- Dividend 75,000,000 10 75.00 - 

Reliance Fixed Horizon Fund XV Series 7- Dividend 50,000,000 10 50.00 - 

Reliance Fixed Horizon Fund -XVIII Series 3- Dividend 10,000,000 10 10.0 

0.00 - 

Reliance Quarterly Interval Fund- Series 3- 


Reliance Regular Savings Fund- Growth 


Reliance Short Term Fund - Dividend 


Religare Active Income Fund - Dividend 


Religare Fixed Maturity Plan- III Plan A 

(12 Months)- Growth 5,000,000 10 5.00 - 

Religare Fixed Maturity Plan -Series -III Plan D 

(370 Days) -Growth 10,000,000 10 10.0 

0.00 - 

Religare Fixed Maturity Plan -Series -III Plan F 

(370 Days)- Growth 15,000,000 10 15.0 

5.00 - 

Religare Fixed Maturity Plan -Series IV - Plan F - 

Growth 10,000,000 10 10.0 

0.00 - 

Religare Fixed Maturity Plan-Series VI-Plan B 

(370 Days)- Growth 10,000,000 10 10.0 

0.00 - 

30

UltraTec 




` in Crores 


Previous 

Year 

Description 

No. of 

Face 

Units 

Value 

SBI Debt Fund Series- 180 Days -16- Dividend 10,000,000 10 10.0 

0.00 - 

SBI Debt Fund Series- 180 Days-14- Dividend 25,000,000 10 25.00 - 

SBI Debt Fund Series- 370 Days- 10- Growth 50,000,000 10 50.00 - 

SBI Debt Fund Series -90 Days-39- Dividend 50,000,000 10 50.00 - 

Tata Fixed Maturity Plan Series 29 Scheme B- 

Growth 20,000,000 10 20.00 - 

Tata Fixed Maturity Plan Series 29 Scheme C- 

Growth 25,004,113 10 25.00 - 

Taurus Fixed Maturity Plan 370 Days Series - D- 

Growth 5,000,000 10 5.00 - 

Taurus Fixed Maturity Plan 91 Days Series B- 

Dividend 5,000,000 10 5.00 - 

UTI Fixed Income Interval Fund - MIP - I - 


UTI Fixed Income Interval Fund -Annual Interval 

Plan Series -II -Institutional -Growth 9,378,264 10 10.0 

0.00 - 

UTI Fixed Income Interval Fund MIP-Series 2 - 


UTI Fixed Income Interval Fund QIP-Series 3 - 


UTI Fixed Income Interval Fund QIP-Series 5 - 


UTI Fixed Maturity Plan - YFMP (03/09)- Growth 


UTI Fixed Maturity Plan YFMP (09/09) -Growth 


UTI Short Term Income Fund Regular - Dividend 


UTI Short Term Income Fund-STP - Dividend 

(Previous Year 9,264,855 units) - 10 - 11.01 

3,482.79 1,606.68 

3,730.32 1,669.55 

Note: No. of Units of various Mutual Funds - Debt Schemes purchased and redeemed during the year 

are as follows: 

Axis Mutual Fund - 612,964; Baroda Pioneer Mutual Fund - 238,380,917; Birla Sun Life Mutual Fund - 

10,853,833,240; Deutsche Mutual Fund - 76,585,763; DSP BlackRock Mutual Fund - 929,988; Fidelity 

Mutual Fund - 214,783,965; Franklin Templeton Mutual Fund - 510,571; HDFC Mutual Fund - 502,012,719; 

ICICI Prudential Mutual Fund - 947,572,384; IDFC Mutual Fund -753,760,655; Kotak Mahindra Mutual 

Fund - 2,155,259,935; L&T Mutual Fund - 10,000,000; LIC Mutual Fund - 855,878,171; PRINCIPAL PNB 

Mutual Fund - 23,348,347; Reliance Mutual Fund - 1,589,613,131; Religare Mutual Fund - 390,115,912; 

SBI Mutual Fund - 275,672,193; Sundaram Mutual Fund - 26,376,673; Tata Mutual Fund - 207,321,965; 

UTI Mutual Fund - 452,365,761; 8.08% GOI-2022 1,500,000; 8.13% GOI-2022 2,000,000. 

31 ⊳

UltraTec 


` in Crores 

Previous 

SCHEDULE 7 

Year 

INVENTORIES 

Stores and Spare parts, Packing Material, Fuel and Scrap 1,116.75 

480.43 

Raw Materials 189.53 

91.87 

Work-in-progress 422.66 166.40 

Finished Goods 227.58 

83.00 

1,956.52 821.70 

SCHEDULE 8 

SUNDRY DEBTOR 

ORS 

Exceeding six months: 

Secured (Considered Good) 0.39 0.90 

Unsecured 

Considered Good 20.95 4.49 

Considered Doubtful 1.36 

.36 - 

22.70 5.39 

Less: Provision for Doubtful Debts 1.36 

.36 - 

21.34 

.34 5.39 

Others: (Considered Good) 

Secured 157 

57.1 

.12 53.89 

Unsecured 423.83 156.55 

580.95 210.44 

602.29 215.83 

SCHEDULE 9 

CASH 

SH AND BANK BALANCES 

Cash Balance on Hand {Including Cheques on Hand 

` 24.30 Crores, (Previous Year ` 13.36 Crores)} 24.78 13.46 

Bank Balance with Scheduled Banks: 

In Current Accounts 118.57 

69.11 

In Fixed Deposit Account* 0.32 - 

In Unclaimed Dividend Account 1.1 

.12 1.16 

144.79 

83.73 

* ` 0.32 Crore lodged as Security with Government Department. (Previous Year ` Nil) 

32

UltraTec 


` in Crores 

Previous 

SCHEDULE 10 

Year 

LOANS 

AND ADVANCES 

ANCES 

Secured and Considered Good 

Loan against House Property (Secured by deposit of title deeds) 0.07 0.13 

Unsecured 

Considered Good, unless otherwise specified: 

Loans and Advances to Subsidiary Companies 121 

21.91 

0.21 

Advance to Parent Company 0.34 - 

Loan to the Managing Director - 0.50 

{Maximum amount outstanding ` 0.50 Crore, 

(Previous Year ` 0.50 Crore)} 

Deposits and Balances with Government and other Authorities 360.06 112.84 

Advances recoverable in cash or in kind or for value 460.95 224.99 

to be received 

Advance Tax (Net of Provision for Taxation) 110.55 

12.46 

Advances recoverable in cash or in kind - considered doubtful 0.25 0.22 

1,054.06 351.22 

Less: Provision for doubtful Loans and Advances 0.25 0.22 

1,053.81 351.00 

1,053.88 351.13 

SCHEDULE 11 

CURRENT LIABILITIES 

Sundry y Creditors 

Dues of Micro, Small and Medium Enterprises 1.1 

.15 0.13 

(To the extent identified with available information) 

Others 1,677.06 

.06 681.38 

1,678.21 681.51 

Security and Other Deposits 469.92 180.24 

Advances from Customers 149.72 

92.09 

Investor Education and Protection Fund, Amount not due: 

Unpaid Dividend 2.36 1.67 

Other Liabilities 503.90 152.73 

Interest accrued but not due on loans 76.30 

29.84 

2,880.41 1,138.08 

SCHEDULE 12 

PROVISIONS 

For Retirement Benefits 134.94 

41.19 

For Mines Restoration 9.38 6.70 

For Tax (Net of Advance Tax) 43.71 26.02 

For Cost of Assets transferred {Refer Note B 16 (b)} 194.37 

- 

For Proposed Dividend 164.42 

74.69 

For Corporate Dividend Tax 26.67 12.41 

573.49 161.01 

33 ⊳

UltraTec 


` in Crores 

Previous 

SCHEDULE 13 

Year 

INTEREST AND DIVIDEND INCOME 

(A) On Investments 

Long 

Term Investments: 

Dividend from a Subsidiary Company 4.85 1.69 

Current rent Investments: 

Dividend from Current Investments 100.95 

0.95 49.77 

(B) Interest (Gross) on others 16.54 

4.75 

{Tax Deducted at Source ` 1.04 Crores, (Previous Year ` 0.67 Crore )} 

122.34 

56.21 

SCHEDULE 14 

Other Income 

Lease Rent 0.57 0.27 

Insurance Claim 4.79 1.36 

Profit on sale of Current Investments (Net) 18.36 

2.02 

Profit on Sale of Fixed Assets (Net) - 0.13 

Exchange Rate Difference (Net) 10.30 

17.49 

Miscellaneous Income / Receipts 130.31 

44.54 

164.33 

65.81 

SCHEDULE 15 

INCREASE SE / (DECREASE) IN STOCKS 

Closing Stock 


Finished Goods 227.58 

.58 83.00 

650.24 249.40 

Opening stock 

Work-in-progress 166.40 

176.99 

Finished Goods 83.00 67.82 

Add: Stock transferred from SCL as on 01.07.2010, 334.73 - 

pursuant to scheme of Amalgamation 

584.13 244.81 

Add: Increase / (Decrease) in Excise Duty on Stocks (4.27) (6.86) 

Increase / (Decrease) in Stocks 61.84 

(2.27) 

SCHEDULE 16 

RAW MATERIAL 

TERIALS CONSUMED 

Opening Stock 91.87 

68.00 



Purchase and Incidental Expenses (including cost of Lime Stone raised) 1,816.48 

984.48 

1,994.86 1,052.48 

Less: Closing Stock 189.53 

91.87 

1,805.33 960.61 

34

UltraTec 


` in Crores 

Previous 

SCHEDULE 17 

Year 

MANUFACTURING EXPENSES 

Freight and Handling expense on Clinker transfer 326.79 144.11 

Consumption of Stores, Spare Parts, Components and Packing Materials 825.35 420.43 

Power and Fuel Consumed 3,122.59 

1,430.22 

Processing Charges 23.43 9.65 

Hire Charges of Plant and Machinery and Others 10.80 

6.59 

Repairs to Plant and Machinery 156.54 

87.77 

Repairs to Buildings 32.82 22.93 

Repairs to Others 49.66 27.17 

4,547.98 

2,148.87 

SCHEDULE 18 

PAYMENTS 

TO AND PROVISIONS FOR EMPLOYEES 

Salaries, Wages and Bonus 561.80 

214.66 

Contribution to Provident and Other Funds 57.98 

.98 22.02 


Welfare Expenses 45.86 15.92 

666.50 252.94 

SCHEDULE 19 

SELLING, DISTRIBU 

TRIBUTION, 

TION, ADMINISTRA 

TRATION 

TION AND OTHER EXPENSES 

Commission to Distributors and Selling Agents 108.02 

46.03 

Cash Discount 173.58 

69.01 

Freight, Handling and Other Expenses 2,558.08 1,228.79 

Advertisement and Sales Promotions 329.26 134.05 

Insurance 18.96 

8.87 

Rent (including Lease Rent) 54.35 19.21 

Rates and Taxes 93.16 40.91 

Stationery, Printing and Communication Expenses 21.29 

.29 11.51 

Travelling and Conveyance 48.87 16.75 

Legal and Professional Charges 72.56 29.36 

Bad Debts and Advances Written Off 0.09 0.44 

Directors’ Fees 0.13 0.16 

Director’s commission (including ` 10 Crores related to previous year) 25.00 - 

Power (other than related to Manufacturing Activity) 3.53 2.13 

Loss on Sale of Fixed Assets (Net) 0.04 - 

Contribution for Political Party (General Electoral Trust) - 1.15 

Miscellaneous Expenses 90.99 45.16 

3,597.91 

1,653.53 

SCHEDULE 20 

INTEREST AND FINANCE CHARGES 

(A) Interest 

On Debentures and Fixed Loans 224.16 85.90 

On Other Loans 46.99 29.11 

Less: Interest Capitalised 0.02 2.03 

271.1 

.13 112.98 

(B) Finance Charges 5.98 4.54 

277.1 


35 ⊳

UltraTec 


SCHEDULE 21 

ACCO 

CCOUNTING POLICIES AND NOTES ON ACCO 

CCOUNTS 

A 

Significant Accounting Policies: 

1. Basis of Accounting: 

The financial statements are prepared and presented under the historical cost convention on 

accrual basis of accounting 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), to the extent applicable, 

other pronouncements of the Institute of Chartered Accountants of India and with the relevant 

provisions of the Companies Act, 1956. 

2. Use of estimates: 

The preparation of financial statements in conformity with the GAAP requires estimates and 

assumptions to be made that affect the reported amounts of assets and liabilities on the date of 

the financial statements, the reported amounts of revenues and expenses during the reported 

period and the disclosures relating to contingent liabilities as of the date of the financial statements. 

Any revision to accounting estimates is recognised prospectively in the current and future periods. 

Difference between actual results and estimates are recognised in the period in which the results 

are known or materialise. 

3. Fixed 

ed Assets: 

Fixed assets, whether tangible or intangible, are stated at cost less accumulated depreciation / 

impairment loss (if any), net of Modvat / Cenvat (wherever claimed). The cost of fixed assets 

includes taxes, duties, freight and other incidental expenses incurred in relation to their acquisition 

and bringing the assets for their intended use. 

Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and 

the cost of fixed assets not ready for their intended use before such date are disclosed under 

Capital Work-in-Progress. 

Fixed Assets held for disposal are stated at lower of net book value and net realisable value. 

4. Treatment of expendit 

xpenditure ure during construction period: 

Expenditure / Income, during construction period is included under Capital-Work-in-Progress and 

the same is allocated to the respective Fixed Assets on the completion of their construction. 

5. Foreign Currency 

rency Transactions: 

(i) 

(ii) 

Transactions denominated in foreign currency are recorded at the exchange rate prevailing on 

the date of the transaction. Monetary assets and liabilities denominated in foreign currency at 

the balance sheet date are translated at the year-end rates. 

In respect of Forward exchange contracts, premium or discount, being the difference between 

the forward exchange rate and the exchange rate at the inception of contract is recognised as 

expense or income over the life of the Contract. 

(iii) Exchange difference including premium or discount on forward exchange contracts, relating 

to borrowed funds, liabilities and commitments in the foreign currency for acquisition of fixed 

assets, arising till the assets are ready for their intended use, are adjusted to cost of fixed 

assets. Any other exchange difference either on settlement or translation is recognised in the 

Profit and Loss account. 

(iv) Investments in equity capital of companies registered outside India are carried in the Balance 

Sheet at the rates at which transactions have been executed. 

36

UltraTec 


SCHEDULE 21 (Contd.) 

6. Derivativ 

atives: 

Financial Derivativ 

ative Instruments 

Derivative instruments are used to hedge risk associated with foreign currency fluctuations and 

interest rates. The derivative contracts are closely linked with the underlying transactions and are 

intended to be held to maturity. These are accounted on the date of their settlement and realised 

gain/loss in respect of settled contracts is recognised in the Profit and Loss Account. 

Commodity Hedging 

The realised gain/loss in respect of commodity hedging contracts, the pricing period of which has 

expired or contracts cancelled during the year are recognized in the Profit and Loss Account. 

However, in respect of contracts, the pricing period of which extends beyond the Balance Sheet 

date, suitable provision for likely loss, if any, is made in the accounts. 

7. Investments: 

Investments are classified into long term investments and current investments. Long-term 

investments are carried at cost after deducting provisions made, if any, for diminution in value of 

investments other than temporary, determined separately for each individual investment. 

Current investments are carried at lower of cost and fair value, determined separately for each 

individual investment. 

8. Inventories: 

Inventories are valued at the lower of weighted average cost and estimated net realisable value 

except waste/scrap which is valued at net realisable value. 

Cost of finished goods and process stock includes cost of conversion and other costs incurred in 

bringing the inventories to their present location and condition. 

9. Depreciation and Amortisation: 

Depreciation is charged in the Accounts on the following basis: 

(A) Tangible Assets: 

(i) 

Depreciation is provided on the straight-line basis at the rates and in the manner prescribed 

in Schedule XIV to the Companies Act, 1956 except for some of assets at the rates based 

on the useful life of the assets as determined by the management, which are higher than 

the rates specified in Schedule XIV to the Companies Act, 1956, as stated under: 

(a) Company Vehicles other than those provided to the employees at 20% per annum. 

(b) Roads, Culverts, Walls, Buildings etc. within factory premises at 3.34% per annum. 

(c) Computer and Office Equipments at 25% per annum 

(d) Furnitures and Fixtures – 7 years 

(e) Mobile Phones – 3 years 

(f) 

Motor Cars given to the employees as per the Company’s Scheme are depreciated 

over the Scheme period. 

(ii) 

Assets acquired up to September 30, 1987, are depreciated at the rates prevailing at the 

time of acquisition. 

37 ⊳

UltraTec 



(iii) The value of leasehold land and mining lease is amortised over the period of the lease. 

(iv) Assets not owned by the Company are amortised over a period of five years or the period 

specified in the agreement. 

(v) Expenditure incurred on Jetty is amortised over the period of the relevant agreement 

such that the cumulative amortisation is not less than the cumulative rebate availed by 

the Company. 

(vi) Depreciation on additions is provided on a pro-rata basis from the month of installation or 

acquisition and in case of project from the date of commencement of commercial 

production, while depreciation on deductions/disposals is provided on a pro-rata basis 

upto the month preceding the month of deductions/disposals. 

(B) Intangible Assets: 

Specialised softwares are amortised over a period of 3 years. 

10. 

0. Impairment of Assets: 

The carrying amounts of assets are reviewed at each balance sheet date if there is an indication 

of impairment based on the internal and external factors. 

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable 

amount. An impairment loss, if any, is charged to the 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 been decreased. 

11. Employee ee Benefits: 

(i) 

Short term employee ee benefits 

Short term employee benefits are recognised as an expense on accrual at the undiscounted 

amount in the Profit and Loss Account. 

(ii) Defined Contribution Plan 

Contributions payable to recognised provident fund and approved superannuation scheme, 

which are defined contribution plans, are recognised as expense in the Profit and Loss 

Account; as they are incurred. 

Contributions as specified by the law are paid to the provident fund set up as irrevocable trust 

by the holding company. 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 contribution and shortfall, if any, as an expense in the year incurred. 

(iii) Defined Benefit Plan 

The obligation in respect of defined benefit plans, which cover Gratuity, Pension and Post 

retirement medical benefits, are provided for on the basis of an actuarial valuation, using the 

projected unit credit method, at the end of each financial year. Gratuity is funded with an 

approved fund. Actuarial gains/losses, if any, are recognised immediately in the Profit and 

Loss Account. 

Obligation is measured at the present value of estimated future cash flows using a discount 

rate that is based on the prevailing market yields of Government of India securities as at the 

balance sheet date for the estimated term of the obligations. 

38

UltraTec 



(iv) Other Long 

Term Benefits 

Long-term compensated absences are provided for on the basis of an actuarial valuation, 

using the projected unit credit method, at the end of each financial year. Actuarial gains/ 

losses, if any, are recognised immediately in the Profit and Loss Account. 

12. 

Bor 

orro 

rowing Costs: 

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are 

capitalised as part of the cost of such asset till such time the asset is ready for its intended use. 

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for 

its intended use. All other borrowing costs are recognised as an expense in the period in which 

they are incurred. 

The difference between the face value and the issue price of ‘Discounted Value Non-Convertible 

Debentures’, being in the nature of interest, is charged to the profit and loss account, on a 

compound interest basis determined with reference to the yield inherent in the discount. 

13. 

3. Taxation: 

Current Tax is measured on the basis of estimated taxable income for the current accounting 

period and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. 

Deferred Tax resulting from “timing differences” 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. Deferred tax assets are recognised and carried forward only to the extent 

that there is reasonable certainty, except for carried forward losses and unabsorbed depreciation 

which are recognised based on virtual certainty, that the assets will be realised in future. 

14. 

4. Revenue enue Recognition: 

(i) 

(ii) 

Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the 

goods to the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns but 

includes excise duty. 

Income from services is recognised as they are rendered, based on agreement/arrangement 

with the concerned parties. 

(iii) Dividend income on investments is accounted for when the right to receive the payment is 

established. Interest income is recognised on accrual basis. 

(iv) Export Incentives, insurance, railway and other claims, where quantum of accruals cannot be 

ascertained with reasonable certainty, are accounted on acceptance basis. 

15. 

5. Mines Restoration Expenditure: 

The Company provides for the estimated expenditure required to restore quarries and mines. The 

total estimate of restoration expenses is apportioned over the estimate of mineral reserves and a 

provision is made based on minerals extracted during the year. 

The total estimate of restoration expenses is reviewed periodically, on the basis of technical 

estimates. 

16. 

Pro 

rovisions, Contingent Liabilities and Contingent Assets: 

Provisions are recognised when there is a present obligation as a result of past events and it is 

probable that an outflow of resources will be required to settle the obligation, in respect of which 

39 ⊳

UltraTec 



a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to 

reflect the current best estimate. 

Contingent Liabilities are not recognised but are disclosed and Contingent Assets are neither 

recognised nor disclosed, in the financial statements. 

17. . Employees Share based payments: 

The Company follows intrinsic value method for valuation of Employees Stock Options. The 

excess of the market price of shares at the time of grant of options, over the exercise price to be 

paid by the option holder is considered as employee compensation expense and is amortised in 

the Profit and Loss account over the period of vesting, adjusting for the actual and expected 

vesting. 

18. 

Earnings Per Share: 

The basic Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year 

attributable to the equity shareholders by the weighted average number of equity shares 

outstanding during the year. 

For the purpose of calculating diluted earnings per share, net profit after tax for the year attributable 

to the equity shareholders and the weighted average number of equity shares outstanding during 

the year is adjusted for the effects of all dilutive potential equity shares. 

19. 

9. Government Grants and Subsidies: 

(i) 

(ii) 

Government grants and subsidies are recognised when there is reasonable assurance that 

the Company will comply with the condition attached thereto and that the grants will be 

received. 

Capital Government Grants or Subsidies relating to specific fixed assets are deducted from 

the gross value of the respective fixed assets and capital grants for projects are credited to 

Capital Reserve. 

(iii) Revenue Government Grants or Subsidies relating to an expense item are recognised as 

income over the period to match them on a systematic basis to the costs or deducted from 

related expenses. 

20. Segment Reporting Policies: 

Primary Segment is identified based on the nature of products and services, the different risks 

and returns and the internal business reporting system. Secondary segment is identified based 

on geography in which major operating divisions of the Company operate. 

21. Researc 

esearch and development elopment expendit 

xpenditure: 

Revenue expenditure on research and development is expensed as incurred. Capital expenditure 

incurred on research and development is capitalised as fixed assets and depreciated in accordance 

with the depreciation policy of the Company. 

22. Operating lease: 

Leases where significant portion of the risks and rewards of ownership are retained by the lessor 

are classified as operating leases and lease rentals thereon are charged to the Profit and Loss 

Account. 

40

UltraTec 



B. Notes on Accounts 

1a. Contingent Liabilities not provided for in respect of: 

Claims not acknowledged as debts in respect of matters in appeals 

` in Crores 

2010-11 2009-10 

(a) Sales-tax liability 134.80 61.34 

(b) Excise duty 159.52 53.00 

(c) Royalty on Limestone/Marl 181.06 42.84 

(d) Customs 2.82 0.11 

(e) Others 177.90 26.03 

1b. The Company has issued corporate guarantees in favour of Bankers / Lenders / Government 

Authorities for its Subsidiaries and Joint Ventures; details of which are given below : 

(i) Madanpur (North) Coal Company (Pvt.) Limited (JV) ` 3.65 Crores (Previous Year ` 3.65 Crores). 

(ii) Bhaskarpara Coal Company Limited (JV) ` 4.00 Crores* (Previous Year ` Nil). 

(iii) UltraTech Cement Middle East Investments Limited and its subsidiaries US$ 371 Mn (` 

1,654.47 Crores) (Previous Year US$ Nil). 

*Transferred pursuant to Scheme of Amlgamation of Samruddhi Cement Limited (SCL) with 

the Company. 

2. The Ministry of Textiles, vide its orders dated June 30, 1997 and July 1, 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 

accept any liability for non-dispatch of cement in Jute bags in respect of earlier years. 

3. Estimated amount of contracts remaining to be executed on capital account and not provided 

for (net of advances) ` 1,902.25 Crores (Previous Year ` 233.29 Crores). 

4. Scheme of Amalgamation: 

Pursuant to the Scheme of Amalgamation (“the Scheme”) of SCL a subsidiary of Grasim 

Industries Ltd., the holding company, with the Company as sanctioned by the Hon’ble High 

Courts of Bombay and Gujarat vide their orders dated June 11, 2010 and July 01, 2010 

respectively; the entire business and all the assets and liabilities, duties and obligations of 

SCL have been transferred to and vested in the Company with effect from July 01, 2010 (the 

appointed date). The Scheme became effective from August 01, 2010. 

The erstwhile SCL was engaged in manufacture and sale of Cement. 

The amalgamation has been accounted for under the “Pooling of Interest” method as prescribed 

by the Accounting Standard (AS) 14 on “Accounting for Amalgamations” notified under the 

Companies (Accounting Standard) Rules. The scheme has, accordingly, been given effect to in 

these financial statements as under: 

(a) All the Assets, Liabilities, Debenture Redemption Reserve (DRR) and Capital Subsidy 

Reserve (CSR) of SCL have been transferred to the Company at value appearing in the 

books of accounts of SCL as on June 30, 2010. Excess of assets over liabilities net of 

DRR and CSR, amounting to ` 4,851.85 Crores is credited to General Reserve. 

(b) The cost of transfer of assets from SCL to the Company has been adjusted against the 

General reserve. 

(c) Upon effectiveness of the Scheme, the authorised Share Capital of the Company increased 

to ` 2,800,000,000/- consisting of 280,000,000 equity shares of ` 10/- each. 

41 ⊳

UltraTec 



(d) In terms of the Scheme, the shares were to be allotted in the ratio of 4 (four) equity 

shares of the Company of face value `10/- each fully paid-up for every 7 (seven) equity 

shares of SCL of face value ` 5/- each fully paid-up. Accordingly, 149,533,469 equity 

shares of ` 10/- each have been allotted to the shareholders of erstwhile SCL including 

the custodian(s) of Global Depository Receipts (GDR). 

(e) ESOP options of the Company were also extended to the Option holders of the SCL in 

the ratio of 4 options of the Company for every 7 options of SCL. 

In view of the amalgamation of SCL with the Company w.e.f. July 01, 2010, the figures for the 

current year are not comparable with those of the previous year. 

5. The Company’s wholly-owned subsidiary “UltraTech Cement Middle East Investments Limited” 

has completed the acquisition of ETA Star Cement (ETA) and has acquired management control 

of ETA’s operations in the UAE, Bahrain and Bangladesh. 

6. Derivativ 

ative e Instruments outstanding 

(i) 

Derivatives for hedging currency and interest rates, outstanding as on March 31, 2011 are as 

under: 

Particulars 

Purpose 

Currency 

rency 

In Crores 

Cross 



09-10 Currency 

rency 

A. Forward Contracts Exports USD 0.40 1.14 Rupees 

Imports USD 7.12 1.58 Rupees 

Buyers Credit USD 2.50 - Rupees 

Imports Euro 4.57 0.39 USD 

Imports Euro - 0.13 Rupees 

B. Other Derivatives 

i. Currency Option and 

Interest Swap ECB USD 4.00 4.00 Rupees 

ii. Currency and Interest 

Rate Swap (CIRS) Buyers Credit USD 0.26 0.89 Rupees 

Buyers Credit JPY 69.49 294.37 Rupees 

ECB USD 1.00 - Rupees 

ECB JPY 3,468.85 604.60 Rupees 

iii. Interest Rate 

Mibor Linked 

Swap (IRS) NCDs Rupees 200.00 200.00 Rupees 

ECB- External Commercial Borrowings 

(ii) 

Un-hedged Foreign Currency exposure: 

Particulars 

Currency 

rency 

In Crores 

Cross 




rency 

Borrowings USD 2.00 - Rupees 

Interest Payable USD 0.03 - Rupees 

42

UltraTec 



7. Secured Loans: 

(a) Non-Convertible Debentures (NCDs) 

` in Crores 

Previous Year 


(i) 

Fixed Rate Non-Convertible Debentures (NCDs) 

1. 8.25% NCDs(Redeemable at par on September 2, 2012) 65.00 65.00 

2. 8.30% NCDs(Redeemable at par on September 2, 2012) 25.00 25.00 

3. Step up interest NCDs(Redeemable at par on September 16, 2012) 25.00 25.00 

4. 6.65% NCDs(Redeemable at par on April 30, 2013) 5.00 5.00 

5. 10.525% NCDs(Redeemable at par on August 21, 2013, Put and 

Call Option exercisable to both parties on August 22, 2011) 

200.00 200.00 

6. 10.48% NCDs*(redeemable at par on December 16, 2013) 200.00 - 

7. 8.80% NCDs*(redeemable at par on December 30, 2015, Put and 

Call Option exercisable to both parties on December 30, 2013) 

8. 8.01% NCDs*(redeemable at par on July 14, 2016, Put and Call 

Option exercisable to both parties on July 14, 2014) 

100.00 - 

200.00 - 

(ii) Floating Rate ate Non-Convertible Debentures 

1. MIBOR Linked NCDs(Redeemable at par on May 13 ,2011) 200.00 200.00 

(iii) Discounted Value Non-Convertible Debentures 

1. Issued as zero coupon at yield to maturity of 6.80% 

(Carrying amount ` 17.44 crores, previous year ` 16.33 Crores, 20.00 20.00 

Redeemable at par on April 30, 2013) 

* Transferred pursuant to Scheme of Amalgamation of SCL with the Company 

The Company retains the option to purchase the Non-Convertible Debentures in the secondary 

market, and cancel, hold, or reissue the same at such price and on such terms as the Company 

may deem fit or as permitted under the Company Law. Non-Convertible Debentures repurchased 

have not been kept alive for reissuance as at March 31, 2011. 

The Non-Convertible Debentures are secured by way of first charge, having pari passu rights, on 

the movable and immovable properties situated at certain locations of the Company (save and 

except book debts and inventories). 

(b) Foreign Currency rency Loans 

The foreign currency loans of ` 1,095.46 Crores (Previous Year ` 285.16 Crores) are secured 

by way of first charge, having pari passu rights, on the Company’s movable and immovable 

assets situated at certain locations of the company (save and except book debts and 

inventories). Security creation is pending for loan availed from HSBC Bank (Mauritius) Limited, 

Mauritius (Facility amount USD 5 Crores; Amount availed till March 31, 2011 USD 1 Crore). 

43 ⊳

UltraTec 



Hongkong & Shanghai Banking Corporation Ltd, 

Singapore (Japanese Yen 208.80 Crores) 

` in Crores 

Particulars 



09-10 

93.82 93.82 

Credit Agricole Corporate & Investment Bank, Singapore 

(Japanese Yen 211.00 Crores) 92.94 92.94 

DBS Bank Ltd., Singapore (Japanese Yen 184.80 Crores) 98.40 98.40 

Hongkong & Shanghai Banking Corporation Ltd., Mauritius 

(Japanese Yen 233.00 Crores)* 

93.50 - 

HSBC Bank (Mauritius) Ltd., Mauritius (US Dollar 1 Crore)* 45.67 - 

Credit Agricole Corporate & Investment Bank, Singapore 


111.12 - 

Cooperative Central Raiffeisen- Boerenleenbank B.A. 

(Trading as Rabo Bank International), Singapore 181.39 - 


BNP Paribas, Singapore (Japanese Yen 220.00 Crores)* 88.95 - 

DBS Bank Ltd., Singapore (Japanese Yen 550.00 Crores)* 227.07 - 

HSBC Bank (Mauritius) Ltd., Mauritius (USD 1.00 Crores) 44.60 - 

Standard Chartered Bank, London (Japanese Yen 44.90 Crores)* 18.00 - 

Tot 

otal 

al 1,095.46 285.16 

*Transferred pursuant to Scheme of Amalgamation of SCL with the Company. 

(c) Rupee 

Term Loan 

The Rupee Term loans of ` 450.00 Crores (Previous Year ` Nil), from banks are secured by 

way of first charge, having pari passu rights, on movable and immovable properties (save and 

except book debts and inventories) situated at one of the Company’s location. 

` in Crores 

Particulars 



09-10 

Axis Bank Ltd., Indore* 200.00 - 

HDFC Bank Ltd., Mumbai* 250.00 - 

Tot 

otal 

450.00 - 

*Transferred pursuant to Scheme of Amalgamation of SCL with the Company. 

(d) Sales Tax Deferment erment Loan 

The Sales Tax Deferment Loan of ` 8.20 Crores (Previous Year ` Nil) transferred pursuant to 

Scheme of Amalgamation of SCL with the Company and is secured by bank guarantee 

backed by hypothecation of stocks and book debt of the Company. 

44

UltraTec 



8. Disclosure pertaining to Micro, Small and Medium Enterprises: 

There is no principal amount and interest overdue to the Micro, Small and Medium Enterprises. 

During the year no interest has been paid to such parties. 

This information has been determined to the extent such parties have been identified on the 

basis of information available with the Company. 

9. Disclosure as per clause 32 of the listing agreement: 

(a) Loans and Advances given to subsidiaries: 

Name of Subsidiary Companies 

Amount 

Outstanding 

Maximum Balance 

outstanding during 

the Year 

` in Crores 

Investment by 

subsidiary in 

Shares of the 

Company 

(no. of shares) 



09-10 2010-1 




09-10 

Dakshin Cements Limited 0.34 0.21 0.34 0.21 - - 

Harish Cement Limited 121.57 - 121.57 - - - 

(b) Payments made to employees by way of Loans and Advances in the nature of loan where no 

interest is charged or charged at a rate less than the rate prescribed in Section 372A of the 


` in Crores 



09-10 

Outstanding as on 31 st March 11.81 4.55 

Maximum balance outstanding during the Year 15.85 6.30 

10. 

Segment Reporting: 

Business Segment 

The Company is exclusively engaged in the business of cement and cement related products. 

This is in context of AS 17 “Segment Reporting”, notified under the Companies (Accounting 

Standard) Rules, 2006, constitutes one single primary segment. 

Geographical Segment is identified as secondary segment and details are given below: 

Segment Revenue (Sales): 

` in Crores 



09-10 

India 12,820.54 6,588.69 

Rest of the World 389.37 460.99 

Tot 

otal 

13,209.91 7,049.68 

45 ⊳

UltraTec 



11. Auditors remuneration (excluding service tax) and expenses charged to the accounts: 

` in Crores 



09-10 

(a) Stat 

atutor 

utory Auditors: 

Audit fees 0.80 0.38 

Tax audit fees 0.08 0.03 

Fees for other services 0.82 0.29 

Expenses reimbursed 0.04 0.02 

(b) Branch Auditors: 



Expenses reimbursed {` 925 (Previous Year `340)} - - 

- 

(c) Cost Auditors: 


Expenses reimbursed {` 41,880 (Previous Year ` Nil)} - - 

12. (A) Managerial Remuneration: 

` in Crores 



09-10 

Salary 3.23 5.41 

Contribution to Provident Fund and Other Funds 0.36 0.44 

Perquisites 0.20 0.58 

Notes: (i) Remuneration has been paid to a Whole-Time Director in the current year and to a 

Managing Director in the previous year. 

(ii) The above remuneration does not include provision for compensated absences and 

contribution to gratuity fund since it is based on actuarial valuation for the Company 

as a whole. 

(iii) The above remuneration does not include amortisation of Employees Stock Options. 

(B) Commission to Directors other than Whole-Time Director: 

Computation of net profit in accordance with Section 349 of the Companies Act, 1956 

` in Crores 



09-10 

Profit before tax and extraordinar 

xtraordinary items as per 

Profit and Loss 

Account 

1,786.19 1,588.16 

Add: 

Managerial Remuneration 3.79 6.43 

Commission to Directors 25.00* - 

Director’s fees 0.13 0.16 

Loss on Sale of Fixed Assets 0.04 - 

Less: 

Profit on Sale of Fixed Assets - 0.13 

Profit on Sale of Investments 18.36 2.02 

Net Profit for the year 1796.79 1592.60 

Commission to Directors 15.0 

5.00 - 

% to Net Profit 0.84 - 

* ` 10 Crores related to Previous Year. 

46

UltraTec 



13. 

Details of the Company’s interest in its Joint Venture, having Joint Control, as per the requirement 

of Accounting Standard (AS) -27 on “Financial Reporting of Interests in Joint Ventures” notified 

under the Companies (Accounting Standard) Rules, 2006, are as under: 

Sr. . No. Particulars 

` in Crores 

Madanpur (North) Coal 

Bhaskarpara Coal 

Company (Pvt.) Ltd. Co. Ltd*. 





09-10 

% Shares Held 11.17% 11.17% 47.37% - 

(a) Assets 1.10 1.05 8.00 - 

(b) Liabilities 0.01 - 0.01 - 

(c) Income - - - - 

(d) Expenses - - 0.06 - 

(e) Other Matters – Contingent 

Liability 3.65 3.65 4.00 - 

* Transferred pursuant to the Scheme of Amalgamation of SCL with the Company. 

14. 

4. Defer 

erred 

red Tax 

ax Assets and Liabilities as on March h 31, 2011 1 are as under: 

` in Crores 

Particulars 

Defer 

erred 

red 

Transf 

ransfer 

erred 

red 

Current 

rent 

Defer 

erred 

red 

Tax 

from SCL as on 

Year 

Tax(assets)/ 

(assets)/ 01.07 

.07.20 

.2010, 

0, Charge/ 

liabilities 

liabilities 

pursuant to (Credit) as at 31.03.20 

.03.2011 

as at 

Scheme of 

01.04.20 

.04.2010 Amalgamation 

Defer 

erred 

red Tax 

Assets:- 

Provision allowed under tax on payment basis (23.79) (91.36) (46.46)* (161.61) 

(23.79) (91.36) 

(46.46) (161 

61.61) 

Defer 

erred 

red Tax Liabilities:- 

Accumulated Depreciation 846.95 1,023.23 14.09 1,884.27 

Payments allowed under tax not 

expensed in books 7.57 - (0.18) 7.39 

854.52 1,023.23 13.91 

1,891.66 

Net Defer 

erred 

red Tax ax Liability 830.73 931.87 

(32.55) 1,730.05 

Deferred Tax benefits are recognized on assets to the extent that it is more likely than not future 

taxable profit will be available against which the asset can be utilised. 

* Out of ` 46.46 Crores, ` 29.31 Crores adjusted in General Reserve on account of Cost of assets 

transferred pursuant to Scheme of Amalgamation of SCL with the Company. 

47 ⊳

UltraTec 


15. 

The following expenses are included in the different heads of expenses in the Profit and Loss 

Account: 

` in Crores 

Particulars 



09-10 

Raw Power 

Tot 

otal 

Raw Power 

Materials 

and Fuel 

Materials 

and Fuel 

Consumed Consumed 

Consumed Consumed 

Tot 

otal 

Stores and Spares Consumed 41.97 47.38 89.35 27.94 30.91 58.85 

Royalty and Cess 215.71 - 215.71 115.67 - 115.67 

16. 

Movement of provisions during the period as required by Accounting Standard - 29 “Provisions, 

Contingent Liabilities and Contingent Asset” notified under the Companies (Accounting Standard) 

Rules, 2006 (as amended): 

(a) Mines Restoration Expenditure: 

` in Crores 



09-10 

Opening Provision 6.70 5.12 

Transferred from SCL as on 01.07.2010, pursuant to 

Scheme of Amalgamation 0.83 - 

Add: Provision during the year 1.85 1.73 

Less: Utilisation during the year - 0.15 

Closing Pro 

rovision 

9.38 6.70 

(b) Pro 

rovision for Cost of Transf 

ransfer er of Assets: 

` in Crores 



Transferred from SCL as on 01.07.2010, pursuant to Scheme of Amalgamation 131.16 

Add: Provision during the year 88.21 

Less: Utilisation during the year 25.00 

Closing Pro 

rovision 

194.37 

48

UltraTec 


17. Capital al work-in-progress includes: 

` in Crores 



09-10 

Pre-operativ 

re-operative e expenses pending allocation: 

Power and Fuel Consumed 1.49 - 

Salary, Wages, Bonus, Ex-gratia and Provisions 11.90 0.36 

Insurance 0.01 0.13 

Exchange Gain (9.97) (0.07) 

Depreciation 0.17 - 

Interest and Finance charges 5.13 1.83 

Misc. Expenses 25.60 1.20 

Tot 

otal Pre-operativ 

re-operative e expenses 

34.33 3.45 

Less: Income (0.30) (0.34) 

Add: B/f from Previous Year 1.33 12.35 

Add: Transferred from SCL as on 01.07.2010, 18.77 - 


Less: Capitalised during the Year (8.28) (14.13) 

Balance included in Capital 

al Work-in-P 

ork-in-Progress 

rogress 45.85 1.33 

.33 

18. 

8. Disclosure of related parties / related party y transactions: 

Parties 

(a) Parties where control exists: 

Grasim Industries Limited. 

UltraTech Cement Lanka (Pvt.) Ltd. 

Dakshin Cements Limited. 

Harish Cement Limited. (HCL) (w.e.f.01.07.2010) 

UltraTech Cement Middle East Investments Limited. 

(UCMEIL) 

Star Cement Co. LLC, UAE (w.e.f. 31.08.2010) 

Star Cement Co. LLC, RAK Ras-Al-Khaimah UAE 

(w.e.f. 31.08.2010) 

Al Nakhla Crusher LLC, Fujairah (w.e.f. 06.09.2010) 

Arabian Cement Industry LLC, Abu Dhabi 


Arabian Gulf Cement Co W.L.L, Bahrain 


Emirates Power Company Ltd., Bangladesh 


Emirates Cement Bangladesh Ltd., Bangladesh 


Madanpur (North) Coal Company (Pvt.) Limited. 

Bhaskarpara Coal Co. Limited. (w.e.f. 01.07.2010) 

Relationship 

Holding Company 

Subsidiary 

Wholly Owned Subsidiary 



Subsidiary’s Subsidiary – UCMEIL 







Joint Venture 

Joint Venture 

49 ⊳

UltraTec 


(b) Other Related Parties with whom there were transactions during the year: 

Parties 

Samruddhi Cement Limited (upto 30.06.2010) 

Samruddhi Swastik Trading & Investment Ltd. 

Vikram Sponge Iron Ltd (VSIL) (Upto 21.05.2009) 

Sun God Trading & Investment Limited 

Grasim Bhiwani Textiles Ltd. 

Harish Cement Limited (upto 30.06.2010) 

Mr. O. P. Puranmalka, Whole-time Director 

Mrs. Sita Puranmalka 

Mr. S. Misra, Managing Director (upto 31.03.2010) 

Relationship 

Fellow Subsidiary 






Key Management Personnel (KMP) 

Relative of Mr. O.P. Puranmalka (Wife) 


(c) Disclosure of related party transactions: 

` in Crores 

Nature of Transactions 

2010 0 - 11 2009-1 

09-10 

Sale of Goods: 

Grasim Industries Limited 3.30 122.31 

Samruddhi Cement Limited 15.68 - 

UltraTech Cement Lanka (Pvt.) Ltd. 139.85 131.10 

Grasim Bhiwani Textiles Ltd. 0.06 - 

Harish Cement Limited ` 7,128 - 

Tot 

otal 

al 158.89 

253.41 

Purc 

urchase of Goods: 



Vikram Sponge Iron Ltd - 0.50 

Tot 

otal 

57.52 

.52 191 

91.73 

Sale of Fixed 

Assets: 

Grasim Industries Limited - 0.61 

Purc 

urchase of Fixed 

Assets: 



Tot 

otal 

0.96 0.16 

50

UltraTec 


` in Crores 


2010 0 - 11 2009-1 

09-10 

Receiving of Services: 



Grasim Bhiwani Textiles Limited 0.05 - 

Samruddhi Swastik Trading & Investment Limited 0.36 0.20 

Vikram Sponge Iron Limited - 1.27 

Key Management Personnel 3.79 6.43 

Relative of Key Management Personnel 0.05 - 

Tot 

otal 

7.0 

.01 9.68 

Rendering of Services: 


Dividend and Other Income received ed / receivable 


Dividend Paid 


Samruddhi Swastik Trading & Investment Ltd. - 2.54 

Tot 

otal 

al 40.92 34.10 

Interest Paid 

aid 


Interest Receiv 

eceived 

ed 

Key Management Personnel - 0.02 

Debenture Repa 

epayment 


Loans & Adv 

dvances 

Harish Cement Limited 33.48 - 

Madanpur (North) Coal Company (Pvt.) Limited 0.03 - 

UltraTech Cement Lanka (Pvt.) Ltd. 4.36 - 

Tot 

otal 

37.87 

- 

Investments 

UltraTech Cement Middle East Investments Limited 186.41 7.56 

Bhaskarpara Coal Co. Limited 3.67 - 

Tot 

otal 

190.08 

7.56 

Issued shares to Grasim Industries Limited, pursuant to 


Corporate Guarantees given 

UltraTech Cement Middle East Investments Limited 

& its Subsidiaries 1,654.47 - 

51 ⊳

UltraTec 


Outstanding balances 2010 0 - 11 2009-1 

09-10 

Loans and Adv 

dvances 

Dakshin Cements Ltd 0.34 0.21 

UltraTech Cement Lanka (Pvt.) Ltd. 4.36 - 

Harish Cement Limited 121.57 - 

Samruddhi Swastik Trading & Investment Ltd. 0.30 0.14 

Madanpur (North) Coal Company (Pvt.) Limited 0.03 - 

Grasim Bhiwani Textiles Ltd - `12,000 


Tot 

otal 

126.60 

0.85 

Debtors 

Grasim 0.18 4.11 


Samruddhi Swastik Trading & Investment Ltd ` 45,000 - 

Emirates Cement Bangladesh Ltd., Bangladesh 0.40 - 

Tot 

otal 

al 8.72 16.33 

Other Liabilities and Creditors 

Grasim 0.02 - 


Tot 

otal 

al 0.06 - 

Deposit 


Tot 

otal 

al 0.98 - 

Corporate Guarantees 

Madanpur (North) Coal Company (Pvt.) Limited. 3.65 3.65 

Bhaskarpara Coal Co. Limited 4.00* - 

UltraTech Cement Middle East Investments Limited & its 

Subsidiaries 1,654.47 - 

Tot 

otal 

1,662.12 3.65 


` in Crores 

52

UltraTec 


19. 

Employee Benefits: 

(a) Defined Benefit Plans as per Act 

ctuarial 

Valuation on March 31: 

` in Crores 

(i) 

(ii) 

Gratuit 

uity 

(Funded) 



09-10 

Post 

Post 

Pension 

Retirement 

Gratuit 

uity 

Pension 

Retirement 

Medical (Funded) 

Medical 

Benefits 

Benefits 

Change in defined 

benefit obligation 

Opening Balance of 52.10 0.74 0.56 41.98 

0.82 0.61 

Present value of 

Defined Benefit 

Obligation 

Addition on account of 98.05 7.83 - - - - 

obligation Transferred 

from SCL as on 

01.07.2010, pursuant to 

scheme of Amalgamation 

Adjustment of: 

Current Service Cost 11.51 - - 3.79 - - 

Interest Cost 11.03 0.55 0.04 3.24 0.06 0.04 

Actuarial Losses / (Gain) 9.53 0.20 - 4.14 (0.07) (0.05) 

Benefits Paid (7.17) (3.00) (0.03) (1.69) (0.07) (0.04) 

Past Service Cost 2.83 - - 0.64 - - 

Obligation during 

Current year - 15.15 - - - - 

Closing Balance of 177 

77.88 

.88 21.47 

.47 0.57 52.10 0.74 0.56 



Obligation 

Change in Fair 

Value 

of Assets 

Opening 44.84 - - 40.36 - - 

Balance of Fair 

Value 

of Plan Assets 

Addition on account of 95.69 - - - - - 

Fair Value of Plan 

Assets transferred from 

SCL as on 01.07.2010 

Adjustment of: 9.95 - - 3.91 - - 

Return on Plan Assets 

Contribution by the 17.85 3.00 0.03 2.26 0.07 0.04 

employer 

53 ⊳

UltraTec 


` in Crores 

Gratuit 

uity 

(Funded) 



09-10 

Post 

Post 

Pension 

Retirement 

Gratuit 

uity 

Pension 

Retirement 


Medical 

Benefits 

Benefits 

(iii) 

(iv) 

(v) 

Benefits Paid (7.17) (3.00) (0.03) (1.69) (0.07) (0.04) 

Closing Balance of 

Fair 

Value of Plan 

Assets 

161 

61.1 

.16 - - 44.84 - - 

Net Asset / (Liability) 

recognised in the 

Balance Sheet 

Present value of (177.88) (21.47) (0.57) (52.10) (0.74) (0.56) 


Obligation 

Fair Value of Plan 

Asset 161.16 - - 44.84 - - 

Past service cost not 

yet recognised (0.23) - - - - - 


y) 

in the Balance Sheet (16.95) 

(21.47) 

(0.57) (7.26) 

(0.74) 

(0.56) 

Expenses recognised 

in the Profit and Loss 

Account 

Current Service Cost 11.51 - - 3.79 - - 

Interest Cost 11.03 0.55 0.04 3.24 0.06 0.04 

Expected Return on 

Plan Assets (9.95) - - (3.91) - - 

Actuarial (Gain)/ 

Losses 9.54 0.20 - 4.14 (0.07) (0.05) 

Obligation during 

the year - 14.93 - - - - 

Tot 

otal Expense 22.12 15.68 

0.04 7.26 

(0.01) 

(0.01) 

Add: Transferred 

from Pre-operative 

Expenses 0.06 - - - - - 

Tot 

otal expenses 

charged to P&L 22.18 15.68 

0.04 7.26 

(0.01) 

(0.01) 

1) 

The major categories 

of plan assets as a 

percentage of total 

plan 

Government of India 

Securities 8% N.A. N.A. - N.A. N.A. 

54

UltraTec 


` in Crores 

Gratuit 

uity 

(Funded) 



09-10 

Post 

Post 

Pension 

Retirement 

Gratuit 

uity 

Pension 

Retirement 


Medical 

Benefits 

Benefits 

(vi) 

Public Sector Bonds 8% N.A. N.A. - N.A. N.A. 

Insurer Managed Funds 83% N.A. N.A. 100% N.A. N.A. 

Others 2% N.A. N.A. - N.A. N.A. 

Tot 

otal 

100% 

0% N.A. N.A. 100% 

0% N.A. N.A. 

Act 

ctuarial 

Assumptions: 

Discount Rate 8.25% 8%-8.25% 8.25% 8.45% 8.45% 8.45% 

-8.28% 

Turnover Rate 1%-2% - - 1% - 2% - - 

Published PA(90) PA(90) Published PA(90) PA(90 

Rates of annuity annuity Rates of annuity annuity 

Mortality LIC rates rates LIC rates rates 

94-96 down by down 94-96 down down 

4 years by 4 years by 4 by 4) 

years years 

Salary Escalation Rate 8% - - 8% - - 

Retirement age Staff – - - Staff – - 60 Yrs 

60 Yrs 60 Yrs 

Workers – Workers – 

58 Yrs 58 Yrs 

Leaving Service: 

Age: 21-44 2% — — — — — 

Age: 45 & above 1% — — — — — 

(vii) Basis used to determine Expected Rate ate of Ret 

eturn urn on Plan Assets: 

Expected rate of return on Plan Assets is based on expectation of the average long term rate of 

return expected on investments of the fund during the estimated term of the obligations. 

(viii) Salary Escalation Rate: 

The estimates of future salary increases are considered taking into account the inflation, seniority, 

promotion and other relevant factors. 

(ix) 

Experience Adjustments: 

(I) 

Gratuit 

uity (Funded): 

` Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

2008-09 

08-09 2009-1 



Defined Benefit Obligation 22.35 28.12 41.98 52.10 177.88 

Plan Assets 19.08 22.66 40.36 44.84 161.16 

Surplus/(Deficit) (3.27) (5.46) (1.62) (7.26) (16.72) 

55 ⊳

UltraTec 


` Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

2008-09 

08-09 2009-1 



Expected Adjustments on 

Plan Liabilities - 5.93 8.78 (0.34) 7.12 


Plan Assets - 0.03 0.78 0.62 0.90 

(II) Pension Liabilities: 

` Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

2008-09 

08-09 2009-1 




Plan Assets - - - - - 

Surplus/(Deficit) (0.80) (0.82) 0.82 (0.74) (0.75) 


Plan Liabilities - 0.01 ` (28,212) ` (9,037) ` 27,673 

(III) Post ost Retirement Medical Scheme Liabilities: 

` Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

-08 2008-09 

08-09 2009-1 







Plan Liabilities - 0.01 0.01 ` 41,143 (0.01) 

(b) Defined Contribution Plans: 

Amount recognised as an expense and included in Schedule 18 under the head “Contribution to 

Provident and other Funds” of Profit and Loss account ` 37.21 Crores, (Previous Year ` 13.98 

Crores). 

(c) Amount recognised as an expense in respect of Compensated Leave Absences is ` 22.43 Crores, 

(Previous Year ` 6.75 Crores). 

20. Under the Employees Stock Option Scheme - 2006 (ESOS -2006), the Company has granted 

228,473 options to its eligible employees in three Tranches. 

During the year, in terms of the Scheme of Amalgamation, the Company issued stock options, in 

Tranche IV & V, to all the eligible employees of SCL in the ratio of 4 (four) Options of the Company 

for every 7 (seven) Options of erstwhile SCL held by them. 

56

UltraTec 


Details for all the tranches are as under: 

(a) Employees Stock Option Scheme : 

Particulars 

Tranc 

ranche I 

Tranc 

ranche II 

Tranc 

ranche III 

Tranc 

ranche IV 

Tranc 

ranche 

V 

Nos. of Options 99,010 69,060 60,403 88,907 8,199 

Method of Accounting Intrinsic Value Intrinsic Value Intrinsic Value As per the As per the 

Terms of Scheme Terms of Scheme 

Vesting Plan Graded Graded Graded As per the As per the 

Vesting - Vesting - Vesting - Terms of Scheme Terms of Scheme 

25% every 25% every 25% every 

year year year 

Exercise Period 5 Years from 5 Years from 5 Years from As per the As per the 

the date of the date of the date of Terms of Scheme Terms of Scheme 

Vesting Vesting Vesting 

Grant Date 23.08.2007 25.01.2008 08.09.2010 20.09.2010 20.09.2010 

Grant Price (` per share) 606 794 655 709* 1,061* 

Market Price on the date of 

Grant of Option (` per share) 853 794 994 -* -* 

Discount on Average Price 30.00% 1.98% 30.00% - - 

*Issued to employees of erstwhile SCL option holders pursuant to Scheme of Amalgamation of 

SCL with the Company. 

(b) Movement of Options Granted: 



09-10 

Outstanding at the beginning of the year 132,885 168,070 

New options granted including options 

granted to the option holders of erstwhile SCL 157,509 - 

Exercised during the year 21,117 1,200 

Forfeited during the year 809 33,985 

Outstanding at the end of the year 268,468 132,885 

The weighted average price at the date of exercise for options was ` 1,060.54 per share. 

(c) Movement of Exercisable Options: 

Exercisable at the beginning of the year 82,835 42,016 

Vested during the year including new options and 

options granted to the option holders of erstwhile SCL 109,372 42,019 

Exercised during the year 21,117 1,200 

Options exercisable at the end of the year 171,090 82,835 

(d) Fair 

Valuation: 

The fair value of options used to compute proforma net income and earnings per equity share 

have been done by an independent firm of Chartered Accountants on the date of grant using 

the Black-Scholes Model. 

57 ⊳

UltraTec 


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

1. Risk Free Rate - 8% 

2. Option Life - Vesting period (1 Year) + Average of exercise period 

3. Expected Volatility - Tranche-I: 0.49, Tranche-II: 0.52, Tranche-III: 0.30, 

Tranche-IV: 0.30, Tranche-V: 0.30 

4. Expected Growth in Dividend - 20% 

The weighted average fair value of the option, as on the date of grant, works out to ` 469 per 

stock option. 

Had the compensation cost for the stock options granted under ESOS 2006 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: 

` in Crores 

Particulars 



09-10 

Net Profit (2010-11 figure includes Q1FY11 Net Profit of SCL 

`315.00 Crores) 1,719.23 1,093.24 

Add: Compensation Expenses under ESOS included in the Net Profit 0.86 0.34 

Less: Compensation Expenses under ESOS as per Fair Value (1.64) (0.72) 

Net Profit (Fair value basis) 1,718.45 

1,092.86 

Basic Earning Per Share (Reported) – ` / Share 62.74 87.82 

Basic Earning Per er Share (Fair air value basis)– ` / Share 62.71 87.79 

.79 

Diluted Earning Per Share (Reported) – ` / Share 62.72 87.79 

Diluted Earning Per er Share (Fair air value basis) – ` / Share 62.69 87.7 

.76 

21. Earning per Share (EPS): 

` in Crores 

Particulars 



09-10 

(A) Basic EPS: 

(i) Net Profit attributable to Equity Shareholders (2010-11 

figure includes Q1FY11 Net Profit of SCL ` 315.00 Crores) 1,719.23 1,093.24 

(ii) 

Weighted average number of Equity Shares outstanding 

(Nos.) 274,025,026 124,485,979 

Basic EPS (`) ) (i)/(ii) 62.74 87.82 

.82 

(B) Diluted EPS: 

(i) Weighted average number of Equity Shares Outstanding 274,025,026 124,485,979 

(ii) Add: Potential Equity Shares on exercise of option 88,932 37,493 

(iii) Weighted average number of Equity Shares Outstanding 

for calculation of Diluted EPS (i+ii) 274,113,958 124,523,472 

Diluted EPS (`) ) {(A) (i) } / (iii) 62.72 87.79 

Face value of Shares (`) 10 10 

58

UltraTec 


22. Figures less than ` 50,000 have been shown at actual, wherever statutorily required to be 

disclosed, as the figures have been rounded off to the nearest lakh. 

23. Revenue expenditure on Research and Development included in different heads of expenses in 

the Profit and Loss Account is ` 3.19 Crores. (Previous Year ` Nil). 

24. Previous year’s figures have been regrouped and rearranged wherever necessary to conform to 

this year’s classification. 

25. Additional information pursuant to the provisions of paragraphs 3(ii), 4C and 4D of Part II of 

Schedule VI to the Companies Act, 1956 (as certified by the Executives of the respective Divisions) 

is as per schedule 22. 

SCHEDULE 22. 

ADDITIONAL INFORMATION UNDER PAR 

ART II OF SCHEDULE VI TO THE COMPANIES 

ACT 

CT, , 1956 

1. CAPACI 

CITIES 

AND PRODUCTION: 

Product 

Unit 

Installed Capacity* 

y* Act 

ctual Production 


0-11# 

1# 2009-1 



09-10 

Grey Cement Lakh tonnes 487.50 231.00 329.23 176.39 

Ready Mix Concrete Lakh Cubic Meters 103.71 39.89 37.43 15.99 

White Cement Lakh tonnes 5.60 - 4.08 - 

Putty Lakh tonnes 4.00 - 2.34 - 

Licensed capacity not indicated due to abolition of industrial licenses as per Notification No. 477 

(E) dated July 25, 1991 issued under The Industries (Development and Regulation) Act, 1951. 

* As Certified by the Management and accepted by the Auditors. 

# Capacity at the end of year includes capacity transferred from erstwhile SCL. 

2. Quantitativ 

ative details 

TURNOVER: 

Product 

Unit 2010-1 


09-10 

Quantity 

Value 

Quantity 

Value 

` Crores 

` Crores 

Grey Cement Lakh tonnes 332.25 10,932.99 177.65 6,074.60 

Clinker Lakh tonnes 15.57 248.28 24.61 454.58 

Ready Mix Concrete Lakh Cubic Meters 37.58 1,186.64 15.99 482.65 

White Cement Lakh tonnes 4.14 321.83 - - 

Putty Lakh tonnes 2.30 434.42 - - 

Others - 85.75 - 37.85 

Tot 

otal 

13,209.91 

7,049.68 

59 ⊳

UltraTec 


3. INVENTOR 

ORY: 

As at 31.03.20 

.03.2011 As at 31.03.20 

.03.2010 

Product 

Unit 

Quantity 

Value 

Quantity 

Value 

` Crores 

` Crores 


White Cement Lakh tonnes 0.22 13.54 - - 

Putty Lakh tonnes 0.19 17.35 - - 

Others - 1.54 - - 

Tot 

otal 

227.58 

83.00 

4. RAW MATERIAL, STORES 

AND SPARE PAR 

ARTS: 

(a) Raw Material Consumed: 



09-10 

Product 

Quantity 

Value 

Quantity 

Value 

Lakh Tonnes 

` Crores 

Lakh Tonnes 

` Crores 

Limestone* 387.95 484.92 224.90 247.06 

Fly Ash 69.51 239.23 25.87 97.11 

Gypsum 15.08 210.11 8.17 112.66 

Aggregates 40.24 197.99 16.15 66.12 

Sand 31.34 151.85 14.05 61.07 

Chemicals 0.07 90.68 - - 

Slag 11.58 88.97 7.03 55.30 

Iron ore / Hematite / Laterite 11.16 66.59 3.14 25.63 

Clay 4.42 47.70 2.97 39.22 

Bauxite 4.35 53.97 2.01 25.51 

Clinker 1.07 32.85 5.52 176.29 

Chalk 1.89 19.49 - - 

Others - 120.98 - 54.64 

Tot 

otal* 

1,805.33 960.61 

*Including Royalty and Cess on limestone and other related overheads 

60

UltraTec 


(b) Purc 

urchase of Finished Goods: 

Class of goods 

Unit 



09-10 

Quantity 

Value 

Quantity 

Value 

` in Crores ` in Crores 


Others - 43.22 - 16.80 

Tot 

otal 

122.1 

22.18 63.74 

(c) Value of Imports (on CIF basis): 

` in Crores 



09-10 

(i) Raw materials 130.01 37.54 

(ii) Fuel, stores and spares 930.45 422.14 

(iii) Capital goods 43.38 32.25 

(d) Value of Imported and indigenous Raw w Materials, Stores and Spares consumed: 



09-10 

Value 

% Value 

% 

` in Crores 

` in Crores 

Raw w materials: 

Imported 129.28 7.2 28.95 3.0 

Indigenous 1,676.05 92.8 931.66 97.0 

Tot 

otal 

al 1,805.33 100.0 

0.0 960.61 100.0 

0.0 

Stores and spares: 

Imported 88.01 9.6 43.71 9.0 

Indigenous 826.69 90.4 439.71 91.0 

Tot 

otal 

al 914.70 

100.0 

0.0 483.42 100.0 

0.0 

5. EXPENDITURE IN FOREIGN CURRENCY: 

` in Crores 



09-10 

Freight / Dispatch / Demurrage 79.36 80.63 

Service Fees 9.19 7.00 

Interest 5.74 4.06 

Other Matters 3.12 0.75 

61 ⊳

UltraTec 


6. EARNINGS IN FOREIGN EXCHANGE: 

` in Crores 



09-10 

Export of goods {Including ` 242.75 Crores 

(Previous Year ` 322.92 Crores) on FOB basis} 389.37 460.99 

Dividend 4.85 1.69 

Other receipts 19.83 18.77 

7. DIVIDENDS REMITTED IN FOREIGN CURRENCY TO NON-RESIDENT SHAREHOLDER 

OLDERS 

(i) 

Remittance in foreign currency 




09-10 

1 Dividend for the year ended 31.03.2010 31.03.2009 

2 Number of Non Resident Equity Shareholders 188* 8 

3 Number of Shares held by them 2,652,369* 2,790 

4 Amount remitted as dividend (Rupees) 4,653,976* 13,950 

*This includes an amount of ` 4,637,236, declared as dividend by erstwhile SCL in respect of 

177 non-resident equity shareholders holding 2,649,849 equity shares of SCL; since SCL 

amalgamated with the Company effective from July 01, 2010. 

(ii) Except for the above equity shareholders, the Company has not made any remittance in 

foreign currency on account of dividends during the year and does not have information as to 

the extent to which remittances in foreign currencies on account of dividends have been 

made by or on behalf of non-resident equity shareholders. 

(iii) The particulars of non-resident equity shareholders and the amount of dividends paid to them 

are as under: 




09-10 

1 Equity Dividend for the year ended 31.03.2010 31.03.2009 

2 Number of Non Resident Equity Shareholders 

including those under (i) above 10,784* 3,532 

3 Number of Shares held by them 47,115,186* 7,581,427 

4 Amount paid as dividend (` Crores) 14.43* 3.79 

* This includes an amount of ` 5.70 Crores declared as dividend by erstwhile SCL in respect of 

7,306 non-resident equity shareholders holding 32,565,072 equity shares of SCL; since SCL 

amalgamated with the Company effective from July 01, 2010. 

Signatures to Schedules ‘1’ to ‘22’ 



Chairman 

K. C. BIRLA R. C. BHARGAVA 

Sr. Executive President & CFO 

Director 

S. K. CHATTERJEE O. P. PURANMALKA 

Company Secretary 

Whole-time Director 


62

UltraTec 


Balance Sheet Abstract and General Business Profile: 

I 

II 

III 

Registration Details 

Registration No. 1 1 - 1 2 8 4 2 0 State Code 1 1 

Balance Sheet Date 3 1 - 0 3 - 1 1 

Capital Raised during the year (Amount in Rs. Thousands) 

Public Issue 

Right Issue 

N I L N I L 

Bonus Issue 

Private Placement 

N I L N I L 

Employees Stock 

Issued Pursuant to 

Options Scheme Scheme of Amalgamation 

2 1 1 1 4 9 5 3 8 3 

Position of Mobilisation & Deployment of Funds (Amount in Rs. Thousands) 

Total Liabilities 

Total Assets 

1 9 9 9 4 5 7 9 2 1 9 9 9 4 5 7 9 2 

Source of Funds: Paid-up Capital Reserve & Surplus 

2 7 4 0 4 1 7 1 0 3 8 7 1 9 7 8 

Secured Loans 

Unsecured Loans 

2 7 8 9 7 6 6 9 1 3 5 4 8 4 5 5 

Application of Funds: Net Fixed Assets Investments 

1 2 5 0 5 5 8 0 8 3 7 3 0 3 0 6 3 

Net Current Assets Miscellaneous Expenditure 

3 0 4 7 9 7 4 N I L 

IV 

Performance of Company (Amount in Rs. Thousands) 

Turnover 

Total Expenditure 

1 4 8 5 8 6 0 3 6 1 3 0 7 2 4 2 2 6 

+/- Profit/(Loss) Before Tax +/- Profit/(Loss) After Tax 

+ 1 7 8 6 1 8 1 0 + 1 4 0 4 2 1 6 7 

Earning Per Share (Rs.) Dividend Rate (%) 

6 2 . 7 4 6 0 

V 

Generic Name of Principal Product of the Company 

Item Code 2 5 2 3 2 9 . 0 1 

Product Description P O R T L A N D 

C E M E N T 



Chairman 



Director 



Whole-time Director 


63 ⊳

UltraTec 


TO THE BOARD OF DIRECTOR 

ORS OF ULTRA 


1. We have audited the attached Consolidated Balance Sheet of ULTRA 


(“the Company”), its subsidiaries and jointly controlled entities (the Company, its subsidiaries and 

jointly controlled entities constitute “the Group”) as at March 31, 2011, the Consolidated Profit 

and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on 

that date, both annexed thereto. The Consolidated Financial Statements include investments in 

the jointly controlled entities 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 subsidiaries and joint ventures, whose financial 

statements reflect total assets of `1,979.42 crores as at March 31, 2011, total revenues of 

` 628.87 crores and net cash inflows amounting to ` 0.95 crore for the year ended on that date 

as considered in the Consolidated Financial Statements. These financial statements have been 

audited by other auditors whose reports have been furnished to us and our opinion in so far as it 

relates to the amounts included in respect of these subsidiaries and joint ventures is based solely 

on the reports of the other auditors. 

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 subsidiaries and joint ventures 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: 

64

UltraTec 


(i) 

(ii) 

in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 

March 31, 2011; 

in the case of the Consolidated Profit and Loss Account, of the profit of the Group for the 

year ended on that date and 

(iii) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the 

year ended on that date. 




For G. P. P 

. KAPADIA ADIA & Co. 




Partner 

Partner 



65 ⊳

UltraTec 


` in Crores 

As at 

March 31, 2010 

Schedules 

SOUR 



Share Capital 

1A 274.04 

124.49 

Employees Stock Options Outstanding 

1B 4.78 1.99 

Reserves and Surplus 2 10,367 

0,367.78 

4,493.05 

Loan Funds 

10,646.60 

4,619.53 

Secured Loans 3 2,869.19 856.74 

Unsecured Loans 4 2,671.69 

750.33 

5,540.88 1,607.07 

Minority Interest 65.64 7.54 

Defer 

erred 

red Tax Liabilities (Net) 1,733.54 835.55 

TOTAL 

17,986.66 

7,069.69 


Fixed 

ed Assets 

5 

Gross Block 19,077 

9,077.36 

8,105.11 

Less: Depreciation 6,774.08 

3,147.01 

Net Block 

Capital Work-in-Progress 

12,303.28 

1,201.93 

.93 4,958.10 

260.38 

13,505.21 

5,218.48 

Goodwill 471.32 

.32 6.35 

Defer 

erred 

red Tax 

ax Asset (Net) 3.54 - 

Investments 

6 3,513.86 

3.86 1,636.68 

Current 


dvances 

Inventories 7 2,093.51 826.98 

Sundry Debtors 8 824.84 209.96 

Cash and Bank Balances 9 190.1 

90.10 111.69 

Loans and Advances 10 1,026.25 364.80 

Assets held for Disposal 1.22 

.22 - 

4,135.92 

1,513.43 

Less: 

Current rent Liabilities and Pro 

rovisions 

Current Liabilities 11 3,057.20 

.20 1,141.14 

Provisions 12 585.99 164.13 

3,643.19 1,305.27 

Net Current 

rent Assets 

492.73 208.16 

Miscellaneous Expenditure 

- 0.02 

(to the extent not written off or adjusted) 

TOTAL 

17,986.66 

7,069.69 


21 

Schedules referred above form an integral part of the Accounts. 0.00 




Chairman 






66

UltraTec 


` in Crores 

Previous 

Schedules 

Year 

INCOME 

Gross Sales 15,339.84 

7,854.58 

Less : Excise Duty 1,648.69 679.45 

Net Sales 13,691 

3,691.1 

.15 7,175.13 

Interest and Dividend Income 13 119.0 

9.01 55.41 

Other Income 14 170.59 

65.89 


(15.30) 

14,068.35 

7,281.13 

EXPENDITURE 

Raw Materials Consumed 16 2,040.02 1,039.50 

Manufacturing Expenses 17 4,736.48 2,159.93 

Purchase of Finished Products 122.1 

22.18 63.74 

Payments to and Provisions for Employees 18 699.01 256.83 

Selling, Distribution, Administration and 

Other Expenses 19 3,621.1 

.11 1,658.26 

Interest and Finance Charges 20 299.46 117.75 

Depreciation and Obsolesence 812.98 

389.65 

Amortisation of Goodwill on Consolidation - 1.68 

12,331 

2,331.24 

.24 5,687.34 

Less: Captive Consumption of Cement {Net of Excise (10.51) 

(4.02) 

Duty ` 9.35 Crores (Previous Year ` 3.46 Crores)} 

12,320.73 

5,683.32 

Profit Bef 

efore 

Tax ax Expenses 1,747 

47.62 

.62 1,597.81 


Provision for Current Tax 520.47 392.66 

Excess tax provision reversal related to earlier years (125.52) 

(0.13) 

Deferred Tax (Credit) / Charge (8.40) 108.44 

Profit 

After 

ter Tax 

ax Minority Interest 1,361.07 

.07 (6.28) 1,096.84 

1.64 

Profit 

After ter Minority y Interest Balance brought forward from Previous Year 1,367.35 

.35 2,756.46 1,095.20 

2,463.53 

Profit 

Available for 


3,558.73 


Proposed Dividend 164.42 

74.69 

Corporate Dividend Tax 26.67 12.41 

Debenture Redemption Reserve 58.92 (34.83) 

General Reserve 1,100.0 

0.00 750.00 

Balance carried to Balance Sheet 2,773.80 2,756.46 

4,123.81 

3,558.73 

Basic Earnings Per Equity Share (in `) ) {See Note B 18 8 (A)} 61.39 

87.98 

Diluted Earnings Per Equity Share (in `) ) {See Note B 18 (B)} 61.37 

87.95 


21 





Chairman 






67 ⊳

UltraTec 


A 

B 

C 

` in Crores 

March 31, 2011 March 31, 2010 


Profit before tax 

1,747 

47.62 

1,597.81 



389.65 

Amortisation of Goodwill on Consolidation - 1.68 

Compensation Expenses under Employees Stock Option Scheme 0.86 0.34 

Provision for Doubtful Debts and Advances / (Written back) (3.29) 0.28 

Bad Debts Written-off 0.09 0.44 

Excess Provision written back (32.50) (12.56) 

Provision for Retirement benefits 32.65 12.96 

Provision for Mines Restoration 1.85 

1.73 

Interest and Dividend Income (119.06) 

(55.41) 

Interest and Finance Charges 299.46 117.75 

Unrealised Foreigh Exchange (Gain) (1.20) 

(13.91) 

Unrealised loss on Investments - 1.07 

(Profit)/Loss on Sale of Fixed Assets 0.04 (0.13) 

(Profit)/Loss on Sale of Current Investment (18.36) 

(2.02) 

Operating Profit Bef 

efore 

Working Capital al Changes 2,721.1 

.14 2,039.68 


(Increase)/decrease in Inventories (101.87) 

(121.43) 

(Increase)/decrease in Sundry Debtors (134.27) 

(14.04) 

(Increase)/decrease in Loans and Advances (12.39) 

30.79 

Increase/(decrease) in Trade Payables and other Liabilities 51.47 

50.33 

Cash Generated From Operations 2,524.08 1,985.33 

Taxes paid (525.80) (391.86) 

Expenditure for Mines Restoration - (0.15) 

Net Cash Generated from Operating Activities (A) 1,998.28 1,593.32 


Activities: 

Purchase of Fixed Assets (1,271.92) 

(275.38) 

Sale of Fixed Assets 5.69 3.09 

Expenditure for Cost on Assets transferred from SCL, (25.00) 

0) - 

pursuant to Scheme of Amalgamation 

(Increase) / decrease in Current Investments (362.69) (628.26) 

Investment in Subsidiaries (717.40) 

- 

Purchase of Long Term Investments (0.05) - 

Profit on Sale of Current Investments 18.36 

2.02 

Interest and Dividend Received 113.1 

3.11 55.41 


Activities (B) (2,239.90) (843.12) 



0.07 

Repayment of Long Term Borrowings (298.33) (300.00) 

Proceeds from Long Term Borrowings 824.56 32.89 

Proceeds /(Repayment) of Short Term Borrowings (net) 177 

77.49 

(253.92) 


(146.17) 

Dividend Paid (121 

21.68) 

(62.66) 

Corporate Dividend Tax (20.02) (10.58) 

Net Cash Generated / (Used) from Financing Activities (C) 248.07 (740.37) 

Net Increase/(Decrease) in Cash and Cash equivalents (A + B + C) 6.45 9.83 

Cash and Cash Equivalents at the Beginning of the Year 111.69 104.68 

Cash and cash equivalents transfer 

erred red from: 

1. SCL, pursuant to Scheme of Amlgamation 66.64 - 

2. ETA A Star 

ar, , pursuant to acquisition by UCMEIL 6.29 - 

Effect ect of exchange rate on consolidation of Foreign Subsidiary (0.97) (2.82) 

Cash and Cash Equivalents at the End of the Year 190.10 111.69 

Notes: 

1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard - 3 notified under the 

Companies (Accounting Standard) Rules, 2006. 



Accounting Policies and Notes on Accounts 21 

Schedule referred above form an integral part of the Accounts. 




Chairman 






68

UltraTec 


SCHEDULE 1A 

SHARE CAPITAL 

AL 

` in Crores 

Previous 

Year 

Authorised 

280,000,000 Equity shares of ` 10 each (Previous Year 130,000,000) 280.00 130.00 

Issued, Subscribed and Paid up 

274,041,665 Equity shares of ` 10 each fully paid-up. 274.04 

124.49 


274.04 

124.49 

SCHEDULE 1B 

EMPLOYEES STOCK OPTIONS OUTS 

TSTANDING 

Employees Stock Options Outstanding 6.35 2.21 

Less: Deferred Employees Compensation Expenses 1.57 

.57 0.22 

4.78 1.99 

Outstanding Employees Stock Options exercisable into 268,468 Equity Shares of ` 10 each fully paidup 

(Previous Year 132,885). 

SCHEDULE 2 

RESERVES 

AND SURPLUS 

` in Crores 

Balance Transferred Additions Deduction/ Balance 

as at from SCL during Adjustments as at 

March 31, as on the during March 31, 

2010 01.07.2010, year the year 2011 

pursuant 

to Scheme of 

Amalgamation 

Capital Reserve 25.02 0.30 - - 25.32 

Cash Subsidy Reserve 0.10 - - - 0.10 

Debenture Redemption Reserve 90.72 46.25 58.92 - 195.89 

General Reserve 1,621.14 4,643.40 1,108.77 - 7,373.31 

Securities Premium Account 0.10 - 1.91 - 2.01 

Exchange Variation Reserve * (0.49) - (2.16) - (2.65) 

Surplus as per Profit and 2,756.46 - 1,367.35 (1,350.01) 2,773.80 

Loss Account 

4,493.05 4,689.95 2,534.79 (1,350.01) 

1) 10,367 

0,367.78 

Previous Year 3,485.16 - 1,885.16 (877.27) 4,493.05 

* Exchange Variation Reserve has been created for Exchange Variation loss in Opening Equity Share 

Capital and Reserves and Surplus of UltraTech Cement Lanka (Pvt.) Ltd and UltraTech Cement Middle 

East Investments Ltd. 

69 ⊳

UltraTec 


SCHEDULE 3 

SECURED LOANS 

Non-Convertible Debentures 

1,037.44 

536.33 


Foreign Currency Loan 1,104.43 

285.16 

Rupee Term loans 450.00 - 

Cash Credits/Working Capital Borrowings from Banks Secured by 269.12 35.25 

Hypothecation of Stocks and Book Debts of the Company 

Other Loans: 

Sales Tax Deferment Loans 8.20 - 

2,869.19 856.74 

SCHEDULE 4 


Short Term 

From Banks 139.75 

13.47 

Long 

Term 

From Banks 2,053.73 320.98 

From Others 5.96 - 

Sales Tax Deferment Loans 472.25 415.88 

SCHEDULE - 5 

Fixed 

ed Assets 

(A) 

(B) 

PAR 

ARTICULAR 

TICULARS 

2,671.69 

.69 750.33 

` in Crores 

GROSS BLOCK 

DEPRECIATION 

NET T BLOCK 

As at Assets Additions Deductions/ As s at As at Cumulative For the Deductions/ Upto 

As s at 

As at 

March 31, transferred Adjust- March h 31, March 31, Depreciation year Adjust- March h 31, 

March h 31, March 31, 

2010 from SCL ments 2011 2010 transferred ments 2011 2011 2010 

and ETA Star 

from SCL 

and ETA Star 

Tangible 

Assets 

Freehold Land 172.49 592.80 166.06 0.54 930.81 - - - - - 930.81 172.49 

Leasehold Land 19.61 98.68 8.25 0.19 126.35 

7.88 19.75 5.12 0.01 32.74 93.61 11.73 

Buildings 586.21 584.76 123.70 3.09 1,291.58 

179.91 110.97 33.42 1.16 323.14 968.44 406.30 

Railway Sidings 168.83 115.78 7.89 0.17 292.33 90.28 47.47 12.16 - 149.91 

142.42 

78.55 

Plant and 

Machinery 6,934.38 8,635.91 475.74 68.87 15,977 

5,977.1 

.16 2,702.12 2,554.30 711.81 39.96 5,928.27 10,048.89 

4,232.26 

Furniture, 

Fixtures & Office 

Equipments 119.19 140.97 34.46 12.18 282.44 82.14 104.45 24.50 11.45 199.64 

82.80 37.05 

Jetty 76.63 - - - 76.63 

69.72 - 6.44 - 76.1 

6.16 0.47 6.91 

Vehicles 16.97 23.43 12.24 3.95 48.69 9.71 10.91 5.68 2.72 23.58 25.11 7.26 

Tot 

otal 

al Tangible 

Assets 

8,094.31 10,1 

0,192.33 

828.34 88.99 19,025.99 

3,141 

41.7 

.76 2,847.85 

799.13 55.30 6,733.44 12,292.55 

4,952.55 

Intangible 

Assets 

Software & Others 10.80 36.31 4.48 0.22 51.37 

5.25 27.08 8.49 0.18 40.64 10.73 

5.55 

Tot 

otal 

Assets (A+B) 8,105.1 

05.11 10,228.64 

832.82 89.21 19,077 

9,077.36 

3,147 

47.0 

.01 2,874.93 

807.62 

55.48 6,774.08 

12,303.28 

4,958.10 

Previous year 7,430.91 - 695.20 21.00 8,105.11 2,775.40 - 388.48 16.87 3,147.01 

Add: Capital Work-in-Progress {includes advances of ` 459.31 Crores; (Previous Year ` 51.09 Crores)} 1,201.93 

260.38 

13,505.21 

5,218.48 

Note: 

(A) Depreciation for the year 807.62 

388.48 

Add: Obsolesence 5.58 1.17 

Less: Depreciation transferred to Pre-operative Expenses (0.22) - 


389.65 

(B) 1. Leasehold Land includes Mining Rights. 

2. Cost of Plant and Machinery includes ` 55.43 Crores (Previous year ` 29.89 Crores) relating to railway wagons given on operating lease to the Railways under “Own Your 

Wagon Scheme”. 

3. Fixed Assets includes assets costing ` 238.63 Crores (Previous Year ` 150.94 Crores) not owned by the Company. 

4. Buildings include ` 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. 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. 

6. Pursuant to the Scheme of Amalgamation with SCL, the above Gross Block (Assets transferred from SCL) as on 01.07.2010 includes Research and Development Assets 

(Buildings, Plant and Machinery, Furniture Fixtures & Office Equipments and Intangible Assets) of ` 12.34 Crores (Previous Year ` Nil) and Net Block as on 01.07.2010 of 

` 9.67 Crores (Previous Year ` Nil). Additions for the Research and Development Assets during the period is ` 2.26 Crores (Previous Year ` Nil ). 

7. The title deeds of some of the immovable properties transferred pursuant to the Scheme of Arrangement / Amalgamation are yet to be transferred in the name of the 

Company. 

70

UltraTec 


` in Crores 

Previous 

Year 

SCHEDULE 6 

INVESTMENTS 

LONG - TERM (Unquoted, at cost, fully paid, other than trade) 

Government and Trust Securities - - 

(` 42,000, Previous Year ` 10,000) Pledged as security deposit 

Others 

2,000,000 4.5% Cumulative Non-Convertible 20.00 20.00 

Redeemable Preference Shares of ` 100 each in 

Aditya Birla Health Services Limited. (Previous Year 2,000,000) 0.05 - 

50,000 Equity Shares of ` 10 each in Aditya Birla Ports Ltd. 

(Previous Year Nil) 

CURRENT INVESTMENTS (Lower of Cost or Fair Market 

et Value) 

Investment in Debt Schemes of Various Mutual Funds 3,482.79 1,606.68 

Investment in Treasury Bills 11.02 

- 

Fixed Deposits with Financial Institutions - 10.00 

3,513.86 

3.86 1,636.68 

Note: No. of Units of Various Mutual Funds - 

Debt Schemes purchased and redeemed during the year 19,574,935,254. 

SCHEDULE 7 

INVENTORIES 

Stores and Spare parts, Packing Material, Fuel and Scrap 1,154.59 

481.18 

Raw Materials 247.46 

.46 91.87 

Work-in-Progress 423.57 166.40 

Finished Goods {Includes stock in transit ` 4.57 Crores; 267.89 

.89 (Previous Year ` 4.99 Crores); 

87.53 

2,093.51 826.98 

SCHEDULE 8 

SUNDRY Y DEBTOR 

ORS 


Secured (Considered Good) 11.57 

.57 0.90 

Unsecured 

Considered Good 37.0 

.01 4.49 

Considered Doubtful 9.22 0.43 

Less: Provision for Doubtful Debts 57.80 

.80 9.22 5.82 

0.43 

48.58 5.39 

Others: (Considered Good) 

Secured 287.55 

48.02 

Unsecured 488.71 156.55 

776.26 

204.57 

824.84 209.96 

SCHEDULE 9 

CASH 

AND BANK BALANCES 

Cash Balance on Hand {Including Cheques on Hand ` 24.30 Crores, 

(Previous Year ` 13.36 Crores)} 24.92 13.53 

Bank Balance: 

In Current Accounts 130.72 

69.26 

In Fixed Deposit Accounts * 33.34 27.74 

In Unclaimed Dividend Account 1.1 

.12 1.16 

190.1 

90.10 111.69 

* ` 0.32 Crore lodged as Security with Government Department. 

(Previous Year ` Nil) 

71 ⊳

UltraTec 


` in Crores 

Previous 

Year 

SCHEDULE 10 

LOANS 

AND ADVANCES 

ANCES 

Secured and Considered Good 

Loan against House Property (Secured by deposit of title deeds) 0.07 0.13 

Unsecured 


Advance to Parent Company 0.34 - 

Loan to the Managing Director - 0.50 

{Maximum amount outstanding ` 0.50 Crore, 

(Previous Year ` 0.50 Crore)} 

Deposits and Balances with Government and 398.91 124.57 

other Authorities 

Advances recoverable in cash or in kind or 513.47 

227.14 

for value to be received 

Advance Tax (Net of Provision for Taxation) 113.46 

12.46 

Advances recoverable in cash or in kind - 1.24 

.24 0.22 

considered doubtful 

1,027.42 

.42 364.89 

Less: Provision for doubtful Loans and Advances 1.24 

.24 0.22 

1,026.18 364.67 

1,026.25 364.80 



Sundry Creditors 1,807.97 

.97 683.09 

Security and other Deposits 477.75 

.75 180.71 

Advances from Customers 150.1 

50.18 92.09 

Investor Education and Protection Fund, Amount not due: 

Unpaid Dividend 2.36 1.67 


Interest accrued but not due on loans 79.57 29.84 

3,057.20 

1,141.14 

SCHEDULE 12 

PROVISIONS 

For Retirement Benefits 141 

41.61 

41.47 

For Mines Restoration 9.38 6.70 

For Tax (Net of Advance Tax) 49.54 28.86 

For Cost of Assets transferred 194.37 

- 

For Proposed Dividend 164.42 

74.69 

For Corporate Dividend Tax 26.67 12.41 

585.99 164.13 

72

UltraTec 


` in Crores 

Previous 

Year 

SCHEDULE 13 

INTEREST AND DIVIDEND INCOME 

Interest (Gross) on others 18.06 

5.64 

{Tax Deducted at Source ` 1.04 Crores, 

(Previous Year ` 0.67 Crore )} 

Dividend from Current Investments 100.95 

0.95 49.77 

119.0 

9.01 55.41 

SCHEDULE 14 

Other Income 

Lease Rent 0.57 0.27 

Insurance Claim 4.79 1.36 

Profit on sale of Current Investments (Net) 18.36 

2.02 

Profit on Sale of Fixed Assets (Net) - 0.13 

Exchange Rate Difference (Net) 10.29 

16.90 

Miscellaneous Income/Receipts 136.58 

45.21 

170.59 

65.89 

SCHEDULE 15 

INCREASE/(DECREA 

SE/(DECREASE) SE) IN STOCKS 

Closing Stock 



686.89 248.94 

Opening stock 

Work-in-progress 166.40 

176.99 



pursuant to Scheme of Amalgamation and on 

acqusition of ETA Star Cement 

595.02 257.38 

Add: Increase/(Decrease) in Excise Duty on Stocks (4.27) (6.86) 

Increase/(Decrease) in Stocks 87.60 

(15.30) 

SCHEDULE 16 

RAW MATERIAL 

TERIALS CONSUMED 

Opening Stock 91.87 

68.00 

Add: Stock transferred from SCL as on 01.07.2010, pursuant to 137 

37.47 

- 

Scheme of Amalgamation and on acqusition of ETA Star Cement 

Purchase and Incidental Expenses (including cost of Lime Stone raised) 2,058.14 1,063.37 

2,287.48 

1,131.37 

Less: Closing Stock 247.46 

91.87 

2,040.02 1,039.50 

73 ⊳

UltraTec 


` in Crores 

Previous 

Year 

SCHEDULE 17 


Freight and Handling expense on Clinker transfer 326.79 144.11 

Consumption of Stores, Spare Parts, Components and Packing Materials 844.84 429.85 

Power and Fuel Consumed 3,277.20 

1,431.38 


Hire Charges of Plant and Machinery and others 18.81 

6.59 

Repairs to Plant and Machinery 162.65 

87.82 


Repairs to Others 49.83 27.56 

4,736.48 2,159.93 

SCHEDULE 18 

PAYMENTS 


Salaries, Wages and Bonus 593.08 217.87 

Contribution to Provident and Other Funds 58.48 22.47 


Welfare Expenses 46.59 16.15 

699.01 256.83 

SCHEDULE 19 


TRIBUTION, 


TRATION 


Commission paid to Distributors and Selling Agents 108.63 

46.07 

Cash Discount 173.58 

69.01 

Freight, handling and other expenses 2,558.86 1,229.01 

Advertisement and Sales Promotion 332.32 136.70 


Rent (including Lease Rent) 62.85 19.29 

Rates and Taxes 94.10 41.04 

Stationery, Printing and Communication Expenses 22.47 11.65 


Legal and Professional charges 73.07 29.50 

Bad Debts and Advances Written Off 0.09 0.44 

Provision for Doubtful Debts and Advances 0.05 0.28 

Directors’ Fees 0.13 0.16 

Director’s Commission 25.00 - 

Power (other than related to Manufacturing Activity) 3.59 2.13 

Loss on Sale of Fixed Assets (Net) 0.04 - 

Contribution for Political Party (General Electoral Trust) - 1.15 


3,621.1 

.11 1,658.26 

SCHEDULE 20 


(A) Interest 

On Debentures and Fixed Loans 241.30 

85.90 

On Others Loans 49.86 29.11 

Less: Interest Capitalised 0.02 2.03 

291.1 

.14 112.98 

(B) Finance Charges 8.32 4.77 

299.46 117.75 

74

UltraTec 


SCHEDULE 21 

ACCO 

CCOUNTING POLICIES AND NOTES 

TO ACCO 

CCOUNTS 

A 


1. Basis of Accounting: 

The financial statements are prepared and presented under the historical cost convention on 

accrual basis of accounting 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), to the extent applicable, 

other pronouncements of the Institute of Chartered Accountants of India and with the relevant 


2. Use of estimates: 

The preparation of financial statements in conformity with the GAAP requires estimates and 

assumptions to be made that affect the reported amounts of assets and liabilities on the date of 

the financial statements, the reported amounts of revenues and expenses during the reported 

period and the disclosures relating to contingent liabilities as of the date of the financial statements. 

Any revision to accounting estimates is recognised prospectively in the current and future periods. 

Difference between actual results and estimates are recognised in the period in which the results 

are known or materialise. 

3. Fixed 

ed Assets: 

Fixed assets, whether tangible or intangible, are stated at cost less accumulated depreciation/ 

impairment loss (if any), net of Modvat/Cenvat (wherever claimed). The cost of fixed assets 

includes taxes, duties, freight and other incidental expenses incurred in relation to their acquisition 

and bringing the assets for their intended use. 

Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and 

the cost of fixed assets not ready for their intended use before such date are disclosed under 

capital work-in-progress. 

Fixed Assets held for disposal are stated at lower of net book value and net realisable value. 


xpenditure ure during construction period: 

Expenditure/Income, during construction period is included under Capital-Work-in-Progress and 

the same is allocated to the respective Fixed Assets on the completion of their construction. 



(i) Transactions denominated in foreign currency are recorded at the exchange rate prevailing on 

the date of the transaction. Monetary assets and liabilities denominated in foreign currency at 

the balance sheet date are translated at the year-end rates. 

(ii) In respect of Forward exchange contracts, premium or discount, being the difference between 

the forward exchange rate and the exchange rate at the inception of contract is recognised as 

expense or income over the life of the Contract. 

(iii) Exchange difference including premium or discount on forward exchange contracts, relating 

to borrowed funds, liabilities and commitments in the foreign currency for acquisition of fixed 

assets, arising till the assets are ready for their intended use, are adjusted to cost of fixed 

assets. Any other exchange difference either on settlement or translation is recognised in the 

Profit and Loss account. 

(iv) Investments in equity capital of companies registered outside India are carried in the Balance 

Sheet at the rates at which transactions have been executed. 

6. Derivativ 

atives: 

Financial Derivativ 

ative Instruments 

Derivative instruments are used to hedge risk associated with foreign currency fluctuations and 

interest rates. The derivative contracts are closely linked with the underlying transactions and are 

75 ⊳

UltraTec 



intended to be held to maturity. These are accounted on the date of their settlement and realised 

gain/loss in respect of settled contracts is recognised in the Profit and Loss Account. 

Commodity Hedging 

The realised gain or loss in respect of commodity hedging contracts, the pricing period of which 

has expired or contracts cancelled during the year are recognised in the Profit and Loss Account. 

However, in respect of contracts, the pricing period of which extends beyond the Balance Sheet 

date, suitable provision for likely loss, if any, is made in the accounts. 

7. Investments: 

Investments are classified into long term investments and current investments. Long-term 

investments are carried at cost after deducting provisions made, if any, for diminution in value of 

investments other than temporary, determined separately for each individual investment. 

Current investments are carried at lower of cost and fair value, determined separately for each 

individual investment. 


Inventories are valued at the lower of weighted average cost and estimated net realisable value 


Cost of finished goods and process stock includes cost of conversion and other costs incurred in 

bringing the inventories to their present location and condition. 

9. Depreciation and Amortisation: 

Depreciation is charged in the Accounts on the following basis: 

(A) Tangible Assets: 

(i) Depreciation is provided on the straight-line basis at the rates and in the manner prescribed 

in Schedule XIV to the Companies Act, 1956 except for some of assets at the rates based 

on the useful life of the assets as determined by the management, which are higher than 

the rates specified in Schedule XIV to the Companies Act, 1956, as stated under: 

(a) Company Vehicles other than those provided to the employees at 20% per annum. 

(b) Roads, Culverts, Walls, Buildings etc. within factory premises at 3.34% per annum. 

(c) Computer and Office Equipments at 25% per annum 

(d) Furniture and Fixtures – 7 years 

(e) Mobile Phones – 3 years 

(f) Motor Cars given to the employees as per the Company’s Scheme are depreciated 

over the Scheme period. 

(ii) Assets acquired up to September 30, 1987, are depreciated at the rates prevailing at the 

time of acquisition. 

(iii) The value of leasehold land and mining lease is amortised over the period of the lease. 

(iv) Assets not owned by the Company are amortised over a period of five years or the period 

specified in the agreement. 

(v) Expenditure incurred on Jetty is amortised over the period of the relevant agreement 

such that the cumulative amortisation is not less than the cumulative rebate availed by 

the Company. 

(vi) Depreciation on additions is provided on a pro-rata basis from the month of installation or 

acquisition and in case of project from the date of commencement of commercial 

production, while depreciation on deductions/disposals is provided on a pro-rata basis 

upto the month preceding the month of deductions/disposals. 

76

UltraTec 



(vii) Depreciation is charged on Straight Line basis at UltraTech Cement Middle East Investment 

Limited and its subsidiaries at following rates. 

Tangible 

Assets: 

No. of Years 

Buildings (including improvements) 3-15 

Plant and equipment 2-20 

Furniture, fixtures and office equipment 1-5 

Motor vehicles 3-5 

Amortisation of intangible Assets 8.5 

(B) Intangible Assets: 

Specialised softwares are amortised over a period of 3 years. 

10. 

Impairment of Assets: 

The carrying amounts of assets are reviewed at each balance sheet date if there is an indication 

of impairment based on the internal and external factors. 

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable 

amount. An impairment loss, if any, is charged to the 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 been decreased. 

11. Employee ee Benefits: 

(i) 

Short term employee ee benefits. 

Short term employee benefits are recognised as an expense on accrual at the undiscounted 

amount in the Profit and Loss Account. 

(ii) Defined Contribution Plan 

Contributions payable to recognised provident fund and approved superannuation scheme, which 

are defined contribution plans, are recognised as expense in the Profit and Loss Account; as they 

are incurred. 

Contributions as specified by the law are paid to the provident fund set up as irrevocable trust by 

the holding company. 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 contribution and shortfall, if any, as an expense in the year incurred. 

(iii) Defined Benefit Plan 

The obligation in respect of defined benefit plans, which cover Gratuity, Pension and Post retirement 

medical benefits, are provided for on the basis of an actuarial valuation, using the projected unit 

credit method, at the end of each financial year. Gratuity is funded with an approved fund. 

Actuarial gains/losses, if any, are recognised immediately in the Profit and Loss Account. 

Obligation is measured at the present value of estimated future cash flows using a discount rate 

that is based on the prevailing market yields of Government of India securities as at the balance 

sheet date for the estimated term of the obligations. 

(iv) Other Long 

Term Benefits 

Long-term compensated absences are provided for on the basis of an actuarial valuation, using 

the projected unit credit method, at the end of each financial year. Actuarial gains/losses, if any, 

are recognised immediately in the Profit and Loss Account. 

12. 

Bor 

orro 

rowing Costs: 

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are 

capitalised as part of the cost of such asset till such time the asset is ready for its intended use. 

A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for 

its intended use. All other borrowing costs are recognised as an expense in the period in which 

they are incurred. 

77 ⊳

UltraTec 



The difference between the face value and the issue price of ‘Discounted Value Non-Convertible 

Debentures’, being in the nature of interest, is charged to the profit and loss account, on a 

compound interest basis determined with reference to the yield inherent in the discount. 

13. 

Taxation: 

Current Tax is measured on the basis of estimated taxable income for the current accounting 

period and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. 

Deferred Tax resulting from “timing differences” 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. Deferred tax assets are recognised and carried forward only to the extent 

that there is reasonable certainty, except for carried forward losses and unabsorbed depreciation 

which are recognised based on virtual certainty, that the assets will be realised in future. 

14. 

Revenue enue Recognition: 

(i) Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the 

goods to the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns but 

includes excise duty. 

(ii) Income from services is recognised as they are rendered, based on agreement/arrangement 

with the concerned parties. 

(iii) Dividend income on investments is accounted for when the right to receive the payment is 

established. Interest income is recognised on accrual basis. 

(iv) Export Incentives, insurance, railway and other claims, where quantum of accruals cannot be 

ascertained with reasonable certainty, are accounted on acceptance basis. 

15. 

5. Mines Restoration Expenditure: 

The Company provides for the estimated expenditure required to restore quarries and mines. The 

total estimate of restoration expenses is apportioned over the estimate of mineral reserves and a 

provision is made based on minerals extracted during the year. 

The total estimate of restoration expenses is reviewed periodically, on the basis of technical 

estimates. 

16. 

6. Pro 

rovisions, Contingent Liabilities and Contingent Assets: 

Provisions are recognised when there is a present obligation as a result of past events 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. These are reviewed at each Balance Sheet date and adjusted to 

reflect the current best estimate. 

Contingent Liabilities are not recognised but are disclosed and Contingent Assets are neither 

recognised nor disclosed, in the financial statements. 

17. Employees Share based payments: 

The Company follows intrinsic value method for valuation of Employees Stock Options. The 

excess of the market price of shares at the time of grant of options, over the exercise price to be 

paid by the option holder is considered as employee compensation expense and is amortised in 

the Profit and Loss account over the period of vesting, adjusting for the actual and expected 

vesting. 

18. 

Earnings Per Share: 

The basic Earnings Per Share (“EPS”) is computed by dividing the net profit after tax for the year 

attributable to the equity shareholders by the weighted average number of equity shares 

outstanding during the year. 

For the purpose of calculating diluted earnings per share, net profit after tax for the year attributable 

to the equity shareholders and the weighted average number of equity shares outstanding during 

the year are adjusted for the effects of all dilutive potential equity shares. 

78

UltraTec 



19. 

Government Grants and Subsidies: 

(i) Government grants and subsidies are recognised when there is reasonable assurance that 

the Company will comply with the condition attached thereto and that the grants will be 

received. 

(ii) Capital Government Grants or Subsidies relating to specific fixed assets are deducted from 

the gross value of the respective fixed assets and capital grants for projects are credited to 

Capital Reserve. 

(iii) Revenue Government Grants or Subsidies relating to an expense item are recognised as 

income over the period to match them on a systematic basis to the costs or deducted from 

related expenses. 

20. Segment Reporting Policies: 

Primary Segment is identified based on the nature of products and services, the different risks 

and returns and the internal business reporting system. Secondary segment is identified based 

on geography in which major operating divisions of the Company operate. 

21. Researc 


xpenditure: 

Revenue expenditure on research and development is expensed as incurred. Capital expenditure 

incurred on research and development is capitalised as fixed assets and depreciated in accordance 

with the depreciation policy of the Company. 

22. Operating lease: 

Leases where significant portion of the risks and rewards of ownership are retained by the 

lessor are classified as operating leases and lease rentals thereon are charged to the Profit and 

Loss Account 

23. Goodwill: 

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. 

B. NOTES 

TO O CONSOLIDATED FINANCIAL STATEMENTS 

TEMENTS 

1. Principles of consolidation 

(a) The Consolidated Financial Statements (CFS) are prepared on the following basis in 

accordance with Accounting Standard on “Consolidated Financial Statements” (AS – 21) 

and “Financial Reporting of Interest in Joint Ventures” (AS – 27), notified under the 

Companies (Accounting Standard) Rules, 2006: 

(i) The financial statements of the Company and its subsidiary companies are combined 

on a line-by-line basis by adding together the book values of like items of assets, 

liabilities, income and expenses, after eliminating material intra-group balances and 

intra-group transactions resulting in unrealised profits or losses in accordance with 

AS-21. 

(ii) The difference between the costs of investment in the subsidiaries, over the net 

assets as at the end of the financial year immediately preceding the year of acquisition 

of shares in the subsidiaries is recognised in the financial statements as Goodwill or 

Capital Reserve as the case may be. 

(iii) The Company’s interest in Jointly Controlled Entities (JV’s) is consolidated on a 

proportionate consolidation basis by adding together the proportionate book values of 

assets, liabilities, income and expenses and eliminating the unrealised profits / losses 

on intra-group transactions in accordance with Accounting Standard (AS-27). 

(iv) As far as possible, the consolidated financial statements are prepared using uniform 

accounting policies for like transactions and other events in similar circumstances and 

appropriate adjustments are made to the financial statements of subsidiaries when 

they are used in preparing the consolidated financial statements that are presented in 

the same manner as the Company’s separate financial statements. 

79 ⊳

UltraTec 



(v) The financial statements of the Company, its Subsidiaries and JV’s used in the 

consolidation are drawn upto the same reporting date i.e. March 31, 2011. 

(vi) Out of Nine Subsidiaries incorporated outside India whose financial statements have 

been included in the Consolidated financial Statements, financial statements of a 

subsidiary have been drawn up in accordance with the generally accepted accounting 

practices (GAAP) as applicable locally. Financial Statements of these Subsidiaries 

have been re-stated in Indian Rupees considering them as non-integral part of the 

Group’s operations and the resultant exchange gain/loss on conversion has been 

carried forward as Translation Reserve. In the opinion of the Management, based on 

the analysis of the significant transactions of a subsidiary whose financial statements 

have been drawn up in accordance with GAAP as applicabe locally, no material 

adjustments are required to be made to comply with group accounting policies/Indian 

GAAP. 

(b) The Consolidated Financial Statements (CFS) comprises the financial statements of 

UltraTech Cement Limited, its Subsidiaries and its interest in JV’s (Group) as at 31.03.2011, 

which are as under: 

Name of the Company Country of % Shareholding % Shareholding 

Incorporation and Voting and Voting 

Power. FY 2011 Power. FY 2010 

(I) 

Subsidiary Companies: 

(a) Dakshin Cements Limited India 100% 100% 

(b) UltraTech Cement Lanka (Private) Limited. Sri Lanka 80% 80% 

(c) Harish Cement Limited India 100% - 

(d) UltraTech Cement Middle East 

Investments Limited (w.e.f. 03.03.2010) UAE 100% 100% 

(e) Star Cement Co. LLC,* UAE 

(w.e.f. 31.08.2010) UAE 80% - 

(f) Star Cement Co. LLC,* RAK 

Ras-Al-Khaimah UAE (w.e.f. 31.08.2010) UAE 80% - 

(g) Al Nakhla Crusher LLC,* Fujairah 

(w.e.f. 06.09.2010) UAE 80% - 

(h) Arabian Cement Industry LLC*, 

Abu Dhabi (w.e.f. 15.09.2010) UAE 80% - 

(i) Arabian Gulf Cement Co W.L.L*, 

Bahrain (w.e.f. 27.09.2010) Bahrain 80% - 

(j) Emirates Power Company Ltd*., 

Bangladesh (w.e.f. 27.08.2010) Bangladesh 80% - 

(k) Emirates Cement Bangladesh Ltd*., 

Bangladesh (w.e.f. 27.08.2010) Bangladesh 80% - 

(II) Joint Ventures: 

(a) Madanpur (North) Coal Company 

Private Limited (MNCCPL) India 11.17% 11.17% 

(b) Bhaskarpara Coal Co. Limited (BCCL) India 47.37% - 

* Subsidiaries of UltraTech Cement Middle East Investments Limited. 

80

UltraTec 



(c) The effect of intra group transactions between the Company and its subsidiaries are 

eliminated on consolidation. 

2. Notes on Accounts of the financial statements of the Company, its Subsidiaries and its 

interest in Joint Venture are set out in their respective financial statements. 

3. Goodwill: 

Goodwill represents the difference between the Group’s share in the net worth of subsidiaries 

and the cost of acquisition at each point of time of making the investment in the subsidiaries. 

For this purpose, the Group’s share of net worth is determined on the basis of the latest 

financial statements prior to the acquisition after making necessary adjustments for material 

events between the date of such financial statements and the date of respective 

acquisition. 

Goodwill arising out of an acquisition of equity stake is translated at the closing rate on each 

Balance Sheet date as per AS 11 “The Effects of Changes in Foreign Exchange Rates” 

notified under the Companies (Accounting Standard) Rules, 2006. 

Reserves shown in the consolidated balances sheet represents the group’s share in the 

respective reserves of the Group companies. 

Hitherto, the Company was amortising Goodwill arising on amalgamation over 10 years. In 

the current year in order to align with group policy, the Company has reversed and credited ` 

8.77 Crores to General Reserve, being cumulative amortisation of such Goodwill as at 

31.03.2010. 

Had such change in accounting policy not been made, profit for the year before tax would 

have been lower by ` 24.30 Crores, General Reserve would have been lower by ` 8.77 Crores 

and value of Goodwill as at the year end would have been lower by ` 33.07 Crores. 

4. Scheme of Amalgamation: 

Pursuant to the Scheme of Amalgamation (“the Scheme”) of Samruddhi Cement Ltd. (“SCL”) 

a subsidiary of Grasim Industries Ltd., the holding company, with the Company as sanctioned 

by the Hon’ble High Courts of Mumbai and Gujarat vide their orders dated June 11, 2010 and 

July 1, 2010 respectively; the entire business and all the assets and liabilities, duties and 

obligations of SCL have been transferred to and vested in the Company with effect from July 

01, 2010 (the appointed date). The Scheme became effective from August 01, 2010. 

The erstwhile SCL was engaged in manufacture and sale of Cements. 

The assets and liabilities acquired pursuant to the scheme mentioned above continue to 

remain in the name of/owned by SCL pending completion of the relevant formalities of 

transfer. 

Investments made by SCL in Harish Cement Limited (Wholly owned Subsidiary) and 

Bhaskarpara Coal Company Limited were transferred to the Company pursuant to the Scheme 

of Amalgamation. 

In view of the amalgamation of SCL with the Company w.e.f. July 01, 2010, the figures for the 

current year are not comparable with those of the previous year. 

5. The Company’s wholly-owned subsidiary ‘UltraTech Cement Middle East Investments Limited’ 

has completed the acquisition of ETA Star Cement and has acquired management control of 

its operations in the UAE, Bahrain and Bangladesh. 

81 ⊳

UltraTec 



6. (a). Contingent Liabilities not provided for in respect of: 

Claims not acknowledged as debts in respect of matters in appeals 

` in Crores 



09-10 

(a) Sales-tax liability 134.80 61.34 

(b) Excise duty 159.52 53.00 

(c) Royalty on Limestone/Marl 181.06 42.84 

(d) Customs 2.82 0.11 

(e) Others 210.81 26.03 

(b). The Company has issued Corporate guarantees in favour of Government Authorities for 

its Joint Ventures. 

(i) Madanpur (North) Coal Company (Pvt.) Ltd. ` 3.65 Crores (Previous year ` 3.65 

Crores) 

(ii) Bhaskarpara Coal Company Limited ` 4.00 Crores* (Previous year ` Nil) 


7. The Ministry of Textiles, vide its orders dated June 30, 1997 and July 1, 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 

accept any liability for non-despatch of cement in Jute bags in respect of earlier years. 

8. The Srilankan customs commenced an inquiry on the allegation that dividends declared by 

the Company’s Subsidiary UltraTech Cement Lanka (Pvt) Ltd. (UCLPL) and remitted to the 

Company represents part of settlement in respect of the cement imported by the UCLPL and 

that additional duty is payable by the UCLPL. The Sri Lanka Customs have not provided a 

basis for any value to be attributed as alleged additional duty payable. The inquiry was last 

held on September 01, 2010. 

The UCLPL has also filled a Written Application in the Court of Appeal in seeking inter alia to 

quash the aforesaid decision by Srilanka Customs to hold the said inquiry and the said 

application is at the stage of filling counter objections by the respondents. The next hearing 

date is scheduled for May 30, 2011. 

The UCLPL contends there is no basis to include dividends paid in the value of goods and 

consequently intends to resist the aforesaid contention of the Customs at any inquiry. 

9. Estimated amount of contracts remaining to be executed on capital account and not provided 

for (net of advances) ` 2,056.46 Crores (Previous Year ` 233.29 Crores). 

10. 

Segment Reporting: 

Business Segment 

The Company is exclusively engaged in the business of cement and cement related products. 

This is in context of AS 17 “Segment Reporting”, notified under the Companies (Accounting 

Standard) Rules, 2006, constitutes one single primary segment. 


` in Crores 



09-10 

Segment Revenues (Sales): 

India 12,820.54 6,588.69 

Rest of the World 870.61 586.44 

Tot 

otal 

13,691 

3,691.1 

.15 7,1 

,175.1 

75.13 

82

UltraTec 



11. Derivativ 

ative Instruments outstanding 

(i) Derivatives for hedging currency and interest rates, outstanding as on March 31, 2011 are 

as under: 

In Crores 

Cross 

Particulars 

Purpose 

Currency 

rency 2010-1 



rency 

A. Forward Contracts Exports USD 0.40 1.14 Rupees 

Imports USD 7.12 1.58 Rupees 

Buyers 

Credit USD 2.50 - Rupees 

Imports Euro 4.57 0.39 USD 

Imports Euro - 0.13 Rupees 

B. Other Derivatives 

i. Currency Option 

and Interest Swap ECB USD 4.00 4.00 Rupees 

ii. Currency and 

Interest Rate Swap Buyers 

(CIRS) Credit USD 0.26 0.89 Rupees 

Buyers 

Credit JPY 69.49 294.37 Rupees 

ECB USD 1.00 - Rupees 

ECB JPY 3,468.85 604.60 Rupees 

iii. Interest Rate Swap Mibor 

(IRS) Linked 

NCDs Rupees 200.00 200.00 Rupees 

ECB- External Commercial Borrowings 

(ii) Un-hedged Foreign Currency rency exposure: 

Particulars 

Currency 

rency 

In Crores 

Cross 




rency 

Borrowings USD 2.00 - Rupees 

Interest Payable USD 0.03 - Rupees 

12. 

Auditors remuneration (excluding service tax) and expenses charged to the accounts: 

` in Crores 



09-10 

(a) Stat 

atutor 

utory Auditors: 


Tax audit fees 0.10 0.03 


Expenses reimbursed 0.04 0.02 

(b) Branch Auditors: 



Expenses reimbursed {` 925 (Previous Year ` 340)} - - 

(c) Cost Auditors: 


Expenses reimbursed {` 41,880 (Previous Year ` Nil)} - - 

83 ⊳

UltraTec 



13. 

Defer 

erred 

red Tax 

Assets and Liabilities as on March 31, 2011 1 are as under: 

(a) Deferred Tax Liability: 

Particulars 

` in Crores 

Defer 

erred 

red Tax 

Transf 

ransfer 

erred 

red 

Current 

rent Year 

Defer 

erred 

red Tax 

(assets)/ 

from SCL 

Charge/ 

(assets)/ 

liabilities 

as on 

(Credit) 

liabilities 

as at 01.07 

.07.20 

.2010, 

0, as at 

01.04.20 

.04.2010 pursuant to 31.03.20 


scheme of 

Amalgamation 

Defer 

erred 

red Tax 

Assets:- 

Provision allowed under tax 

on payment basis (23.89) (91.36) (46.46)* (161.71) 

(23.89) (91.36) 

(46.46) (161 

61.71) 

Defer 

erred 

red Tax ax Liabilities:- 

Accumulated Depreciation 851.87 1,023.23 12.76 1,887.86 

Payments allowed under tax 

not expensed in books 7.57 - (0.18) 7.39 

859.44 1,023.23 12.58 

1,895.25 

Net Defer 

erred 

red Tax Liability 835.55 931.87 

(33.88) 1,733.54 

* Out of ` 46.46 Crores, ` 29.31 Crores adjusted in General Reserve on account of Cost of 

assets transferred pursuant to Scheme of Amalgation of SCL with the Company. 

(a) Deferred Tax Asset: 

` in Crores 

Particulars 

Defer 

erred 

red Tax 

ax 

Current 

rent Year 

ear 

Defer 

erred 

red Tax 

ax 

(assets)/ 

Charge/ 

(assets)/ 

liabilities 

(Credit) 

liabilities 

as at 

as at 

01.04.20 

.04.2010 31.03.20 


Defer 

erred 

red Tax 

Assets:- 

Provision allowed under tax 

on payment basis - (1.62) (1.62) 

Unabsorbed Losses - (20.54) (20.54) 

(22.16) 

(22.16) 

6) 

Defer 

erred 

red Tax Liabilities:- 

Accumulated Depreciation - 18.62 18.62 

- 18.62 

18.62 

Net Defer 

erred 

red Tax 

Asset 

- (3.54) (3.54) 

Deferred Tax benefits are recognised on assets to the extent that it is more likely than not 

future taxable profit will be available against which the asset can be utilised. 

84

UltraTec 



14. 

Movement of provisions during the period as required by Accounting Standard - 29 “Provisions, 

Contingent Liabilities and Contingent Asset” notified under the Companies (Accounting Standard) 

Rules, 2006 (as amended): 

(a) Mines Restoration Expenditure: 

` in Crores 



09-10 

Opening Provision 6.70 5.12 



Add: Provision during the year 1.85 1.73 

Less: Utilisation during the year - 0.15 

Closing Pro 

rovision 

9.38 6.70 

(b) Pro 

rovision for Cost of Assets transfer 

erred red from SCL: 

` in Crores 




Scheme of Amalgamation 131.16 

Add: Provision during the year 88.21 

Less: Utilisation during the year 25.00 

Closing Pro 

rovision 

194.37 

15. 

5. Disclosure of related parties/related party y transactions: 

(a) Names of Related parties with whom transactions were carried out during the year and 

description of relationship: 

Name of the Related Part 

arty 

Nature of Relationship 

Grasim Industries Limited (Grasim) 


Samruddhi Cement Limited (SCL) (Upto 30.06.2010) Fellow Subsidiary 

Samruddhi Swastik Trading & Investment Ltd.(SSTL) Fellow Subsidiary 

Vikram Sponge Iron Ltd (VSIL) (Upto 21.05.2009) Fellow Subsidiary 

Grasim Bhiwani Textiles Ltd. (GBTL) 


Mr. O. P. Puranmalka, Whole Time Director 


Mrs. Sita Puranmalka 

Relative of Mr. O.P. Puranmalka (Wife) 

Mr. S. Misra, Managing Director (upto 31.03.2010) Key Management Personnel (KMP) 

(b) Disclosure of related party transactions: 

` in Crores 




09-10 

Sale of Goods: 




Tot 

otal 

19.04 

122.31 

85 ⊳

UltraTec 



` in Crores 




09-10 

Purc 

urchase of Goods: 




Tot 

otal 

57.52 

191 

91.73 

Sale of Fixed 

Assets: 


Purc 

urchase of Fixed 

Assets: 



Tot 

otal 

al 0.96 0.16 

Receiving of Services: 






Key Management Personnel 3.79 6.43 


Tot 

otal 

al 7.0 

.01 9.68 

Dividend Paid 

aid 


Samruddhi Swastik Trading & Investment Ltd. - 2.54 

Tot 

otal 

40.92 34.10 

Interest Paid 


Interest Receiv 

eceived 

ed 


Debenture Repa 

epayment 


Issued shares to Grasim, pursuant to Scheme of Amalgamation 97.14 - 

86

UltraTec 



` in Crores 

Outstanding Balances 



09-10 

Loans & Adv 

dvances 


Grasim Bhiwani Textiles Ltd - ` 12,000 


Tot 

otal 

0.30 0.64 

Debtors 

Grasim Industries Limited 0.18 4.11 

Samruddhi Swastik Trading & Investment Ltd ` 45,000 - 

Tot 

otal 

al 0.18 4.11 

Other Liabilities and Creditors 

Grasim Industries Limited 0.02 - 


Tot 

otal 

al 0.06 - 

Deposit 


16. 

6. The Company’s proportionate share in Assets, Liabilities, Income and Expenses of its Joint 

Venture companies included in these Consolidated Financial Statements are given below: 

(a) BALANCE SHEET 

` in Crores 

Particulars 



09-10 

SOUR 



Share Capital 9.17 1.07 

Share Application Money Pending Allotment 0.03 - 

TOTAL 

9.20 1.07 

87 ⊳

UltraTec 



` in Crores 

Outstanding Balances 



09-10 


Fixed 

Assets 

Gross Block 2.63 0.02 

Less: Depreciation {` 42,822; (Previous Year ` 20,909)} - - 

Net Block 2.63 0.02 

Capital Work-in-Progress 5.96 0.79 

Net Block including Capital 

al Work-in-P 


rogress 8.59 0.81 

Current 


dvances 

Cash and Bank Balances 0.27 0.04 

Loans and Advances 0.24 0.20 

0.51 0.24 

Less: 

Current Liabilities 0.01 - 

Net Current 

rent Assets 

0.50 0.24 


(to the extent not written off or adjusted) - 0.02 

Profit & Loss Debit Balance 0.11 - 

TOTAL 

AL 9.20 1.07 

.07 

(a) PROFI 

OFIT AND LOSS ACCO 

CCOUNT 

` in Crores 

Particulars 



09-10 

Expenses 

Payment to and Provision for Employees 0.01 - 

Selling, Distribution, Administration and other Expenses 0.05 - 

Tot 

otal expendit 

xpenditure 

0.06 - 

Loss Bef 

efore 

Tax 

(0.06) - 

Loss 

After 

Tax 

(0.06) - 

88

UltraTec 



17. Employee Benefits: 

(a) Defined Benefit Plans as per Act 

ctuarial 

Valuation on March 31, 2011: 

1: ` in Crores 



09-10 

Gratuit 

uity Post 

Gratuit 

uity 

Post 

Retire- 

Retire- 

Pension 

ment 

Pension 

ment 

Funded 

Others 

Medical Funded 

Others 

Medical 

Benefits 

Benefits 

(i) 

Change in defined benefit 

obligation 

Opening Balance 

of Present value of 

Defined benefit Obligation 52.10 0.28 0.74 0.56 41.98 

0.20 0.82 0.61 

Addition on account of 

obligation Transferred from 

SCL as on 01.07.2010, 

pursuant to scheme of 

Amalgamation 98.05 - 7.83 - - - - - 


Current Service Cost 11.51 0.07 3.79 0.05 - - 

Interest Cost 11.03 0.06 0.55 0.04 3.24 0.05 0.06 0.04 

Actuarial Losses / (Gain) 9.53 0.01 0.20 - 4.14 (0.02) (0.07) (0.05) 

Benefits Paid (7.17) (0.05) (3.00) (0.03) (1.69) (0.07) (0.04) 

Past Service Cost 2.83 - - - 0.64 - - - 

Obligation during the year - - 15.15 - - - - 




Obligation 177 

77.88 

.88 0.37 21.47 

.47 0.57 52.10 0.28 0.74 0.56 

(ii) 

Change in Fair 

air 

Value of Assets 

Opening Balance of 

Fair 

air Value of 

Plan Assets 

44.84 - - - 40.36 - - - 

Addition on account 

of Fair Value of Plan 

Assets transferred from 

SCL as on 01.07.2010, 

pursuant to scheme of 

amalgamation 95.69 - - - - - - - 


Expected Return on 

Plan Assets 9.95 - - - 3.91 - - - 

Contribution by the 

employer 17.85 - 3.00 0.03 2.26 - 0.07 0.04 

Benefits Paid (7.17) - (3.00) (0.03) (1.69) - (0.07) (0.04) 


Fair 

Value of Plan Assets 

161 

61.1 

.16 - - - 44.84 - - - 

89 ⊳

UltraTec 





09-10 

Gratuit 

uity Post 

Gratuit 

uity 

Post 

Retire- 

Retire- 

Pension 

ment 

Pension 

ment 

Funded 

Others 


Others 

Medical 

Benefits 

Benefits 

(iii) Net Asset / (Liability) 

recognised in the 

Balance Sheet 

Present value of Defined 

Benefit Obligation (177.88) (0.37) (21.47) (0.57) (52.10) (0.28) (0.74) (0.56) 

Fair Value of Plan Asset 161.16 - - - 44.84 - - - 

Past service cost not 

yet recognised (0.23) - - - - - - - 


y) 

in the Balance Sheet (16.95) 

(0.37) (21.47) 

(0.57) (7.26) 

(0.28) (0.74) 

4) (0.56) 

(iv) Expenses recognised 

in the Profit and 

Loss 

Account 

Current Service Cost 11.51 0.07 - - 3.79 0.05 - - 

Interest Cost 11.03 0.06 0.55 0.04 3.24 0.05 0.06 0.04 

Expected Return on Plan Assets (9.95) - - (3.91) - - - 

Actuarial (Gain)/Losses 9.53 0.02 0.20 - 4.14 (0.02) (0.07) (0.05) 

Obligation during the year - 14.93 - - - - - 

Tot 

otal al Expense 22.12 0.15 15.68 

0.04 7.26 

.26 0.08 (0.01) 

1) (0.01) 

1) 

Add: Decapitalise in 

Pre-operative Expenses 0.06 - - - - - - - 

Tot 

otal expenses charged 

to P&L 22.18 0.15 15.68 

0.04 7.26 

0.08 (0.01) 

(0.01) 

(v) The major categories of 

plan assets as a 

percentage of total plan 

Government of India Securities 8% N.A. N.A. N.A. - N.A. N.A. N.A. 

Public Sector Bonds 8% N.A. N.A. N.A. - N.A. N.A. N.A. 

Insurer Managed Funds 83% N.A. N.A. N.A. 100% N.A. N.A. N.A. 

Others 2% N.A. N.A. N.A. - N.A. N.A. N.A. 

Tot 

otal 

100% 

0% N.A. 

N.A. 

N.A. 100% 

0% N.A. 

N.A. 

N.A. 

90

UltraTec 





09-10 

Gratuit 

uity Post 

Gratuit 

uity 

Post 

Retire- 

Retire- 

Pension 

ment 

Pension 

ment 

Funded 

Others 


Others 

Medical 

Benefits 

Benefits 

(vi) Act 

ctuarial 

Assumptions: 

8%- 

Discount Rate 8.25% 11% 8.25%- 8.25% 8.45% 12.00% 8.45% 8.45% 

8.28% 

Turnover Rate 1%- 1%- 1%- 

1%-2% 10% - - 2% 10% - - 

Publish GA PA(90) PA(90) Publish GA PA(90) PA(90) 

Rates 1983 annuity annuity Rates 1983 annuity annuity 

Mortality of LIC Mortality rates rates of LIC Mortality rates rates 

94-96 down by down by 94-96 Table down by down by 

4 years 4 years 4 years 4 years 

Salary Escalation Rate 8% 10% - - 8% 15% - - 

Staff - Staff - 

Retirement age 60 Yrs 55 Yrs - - 60 Yrs 55 Yrs - 60 Yrs 

Workers- 

Workers- 

58 Yrs 58 Yrs 

Leaving Service: 

Age: 21-44 2% - - - - - - - 

Age: 45 & above 1% - - - - - - - 

(vii) Basis used to determine Expected Rate ate of Ret 

eturn urn on Plan Assets: 

Expected rate of return on Plan Assets is based on expectation of the average long term rate 

of return expected on investments of the fund during the estimated term of the obligations. 

(viii) Salary Escalation Rate: 

The estimates of future salary increases are considered taking into account the inflation, 

seniority, promotion and other relevant factors. 

91 ⊳

UltraTec 



(ix) Experience Adjustments: 

(I) Gratuity (Funded): 

` in Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

2008-09 

08-09 2009-1 




Plan Assets 19.08 22.66 40.36 44.84 161.16 



Plan Liabilities - 5.93 8.78 (0.34) 7.12 


Plan Assets - 0.03 0.78 0.62 0.90 

(II) Pension Liabilities: 

` in Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

-08 2008-09 

08-09 2009-1 







Plan Liabilities - 0.01 ` (28,212) ` (9,037) ` 27,673 

(III) Post Retirement Medical Scheme Liabilities: 

` in Crores 

Particulars 

2006-07 

06-07 2007 

07-08 

-08 2008-09 

08-09 2009-1 







Plan Liabilities - 0.01 0.01 ` 41,143 ` (0.01) 

(b) Defined Contribution Plans: 

Amount recognised as an expense and included in Schedule 18 under the head 

“Contribution to Provident and other Funds” of Profit and Loss account ` 37.72 Crores, 

(PreviousYear ` 15.02 Crores). 

(c) Amount recognised as an expense in respect of Compensated Leave Absences is ` 24.02 

Crores, (Previous Year ` 6.75 Crores). 

92

UltraTec 



18. 

Earning per Share (EPS): 

Particulars 



09-10 


(i) Net Profit (2010-11 figure includes Q1FY11 Net Profit 

of SCL ` 315.00 Crores) 1,682.35 1,095.20 

(ii) Weighted average number of Equity Shares 

outstanding (Nos.) 274,025,026 124,485,979 

Basic EPS (`) (i)/(ii) 61.39 87.98 


(i) Weighted average number of Equity Shares Outstanding 274,025,026 124,485,979 

(ii) Add: Potential Equity Shares on exercise of option 88,932 37,493 

(iii) Weighted average number of Equity Shares Outstanding 

for calculation of Diluted EPS (i+ii) 274,113,958 124,523,472 

Diluted EPS (`) ) {(A) (i) } / (iii) 61.37 87.95 

Face value of Shares (`) 10 10 

93 ⊳

UltraTec 


19. 

Information relating to Subsidiaries including subsidiaries of subsidiaries: 

(In terms of Government of India, Ministry of Corporate Affairs general Circular No: 2/2011, No: 5/12/2007-CL-III dated 8 th February, 2011) 

(` in Crores) 

Sr.No Name of the Subsidiary Companies Year Currency Share Reserves and Total Assets Total Liabilities Details of Turnover Profit / (Loss) Provision for Profit / Proposed 

Capital Surplus (Net (Fixed Assets (Debts+Current Investments before Taxation (Loss) Dividend 

Including of debit +Current Assets Liabilities & (excluding Taxation after Tax (including 

Share balance of + Deferred Provisions+ investment Corporate 

application profit & loss Tax Assets) Deferred in the Dividend Tax) 

Money account) tax subsidiary 

Liabilities) companies)- 

Treasury Bill 

1 Dakshin Cements Ltd. 2010-11 ` 0.05 - 0.41 0.36 - - - - - - 

2009-10 0.05 - 0.28 0.23 - - - - - - 

2 Harish Cement Ltd.(w.e.f. 1 st July, 2010) 2010-11 ` 0.05 - 126.63 126.58 - - - - - - 

2009-10 - - - - - - - - - - 

3 UltraTech Cement Lanka Pvt Ltd. 2010-11 SLR 50.00 58.38 151.56 70.46 27.28 623.87 48.20 20.54 27.66 10.80 

` 20.20 23.58 61.29 28.53 11.02 248.81 19.26 8.30 10.96 5.98 

2009-10 SLR 50.00 45.71 155.45 59.74 - 617.10 38.86 15.36 23.50 5.00 

` 19.69 18.19 60.69 23.18 - 256.55 14.24 6.05 8.19 2.08 

4 UltraTech Cement Middle East Investments Ltd. 

(Standalone) (w.e.f. 3 rd March, 2010) 2010-11 AED 15.48 (0.51) 0.02 44.13 - - (0.51) - (0.51) - 

` 187.94 (6.23) 0.20 535.88 - - (6.33) - (6.33) - 

2009-10 AED 0.60 (0.00) 0.60 0.00 - - - - - - 

` 7.34 (0.04) 7.31 0.01 - - - - - - 

5 Star Cement Co LLC, Dubai @ 

(w.e.f. 31 st August, 2010) 2010-11 AED 5.09 0.24 21.91 16.58 - 19.12 (2.35) - (2.35) - 

` 61.75 2.89 265.84 201.20 - 237.27 (29.18) - (29.18) - 

2009-10 - - - - - - - - - - 

6 Arabian Cement Industry LLC, Abu Dhabi @ 

(w.e.f. 15 th September,2010) 2010-11 AED 1.00 (0.41) 19.36 18.77 - 17.33 (2.29) - (2.29) - 

` 12.14 (4.95) 234.95 227.77 - 214.96 (28.46) - (28.46) - 

2009-10 - - - - - - - - - - 

7 Star Cement Co LLC, Ras Al Khaimah @( 

w.e.f. 31 st August, 2010) 2010-11 AED 14.36 1.65 87.29 71.28 - 32.69 3.53 - 3.53 - 

` 174.29 20.07 1,059.40 865.03 - 405.54 43.76 - 43.76 - 

2009-10 - - - - - - - - - - 

8 Al Nakhla Crushers LLC, Fujairah @ 

(w.e.f. 6 th September, 2010) 2010-11 AED 0.20 (3.73) 3.87 7.39 - 0.65 (0.75) - (0.75) - 

` 2.43 (45.23) 46.92 89.73 - 8.10 (9.34) - (9.34) - 

2009-10 - - - - - - - - - - 

9 Arabian Gulf Cement Company WLL, Bahrain @ 

(w.e.f. 27 th September, 2010) 2010-11 Bahrain Dirham 0.03 0.56 0.69 0.09 - 0.45 (0.09) - (0.09) - 

` 3.57 67.24 81.88 11.07 - 55.09 (10.65) - (10.65) - 

2009-10 - - - - - - - - - - 

10 Emirates Cement Bangladesh Ltd, Bangladesh @ 

(w.e.f. 27 th August, 2010) 2010-11 Takka 158.93 (77.32) 178.12 96.51 - 136.81 (2.26) (10.79) 8.53 - 

` 104.00 (50.59) 116.56 63.15 - 85.53 (1.41) (6.74) 5.33 - 

2009-10 - - - - - - - - - - 

11 Emirates Power Company Ltd, Bangladesh @ 

(w.e.f. 27 th August, 2010) 2010-11 Takka 27.00 (21.88) 30.99 25.87 - 9.03 (3.43) 5.13 (8.56) - 

` 17.67 (14.32) 20.28 16.93 - 5.64 (2.14) 3.21 (5.35) - 

2009-10 - - - - - - - - - - 

@ Subsidiaries of UltraTech Cement Middle East Investments Ltd. 

Note: For converting the figures given in foreign currency appearing in the accounts of the subsidiary companies into equivalent INR, following exchange rates are used for 1 INR. 

Sr No Currency Balance Sheet Profit & Loss Account 

(Closing Rate) (Average Rate) 

2010-11 2009-10 2010-11 2009-10 

1 Sri Lankan Rupee (SLR) 2.4756 2.5389 2.5074 2.4054 

2 UAE Dirham (AED) 0.0824 0.0818 0.0806 - 

3 Takka 1.5282 - 1.5996 - 

4 Bahrain Dirham 0.0084 - 0.0082 - 

94

UltraTec 


20. Figures less than ` 50,000 have been shown at actuals, wherever statutorily required to be 

disclosed, as the figures have been rounded off to the nearest lakh. 

21. Figures pertaining to the subsidiary companies and Joint Venture have been reclassified wherever 

necessary to bring them in line with the Company’s financial statements. 

22. Previous year’s figures have been regrouped and rearranged wherever necessary to conform to 

this year’s classification. 


Signatures to Schedules ‘1’ to ‘21’ 


Chairman 



Director 


Mumbai, April 26, 2011 Company Secretary Whole-time Director 

95 ⊳

DAKSHIN CEMENTS LIMITED 

DIRECTOR 

ORS’ REPORT 


Your Directors have pleasure in presenting the 

Eighteenth Annual Report together with the 

Audited Accounts of your Company for the year 

ended 31 st March 2011. 


During the year under review, your Company did 

not carry on any business activities and 

accordingly no Profit and Loss Account has been 

prepared. 

CAPITAL AL EXPENDITURE 


not incur any capital expenditure. 

FIXED DEPOSITS 

Your Company has not accepted any fixed deposit 

during the year ended 31 st March, 2011. 

DIRECTOR 

ORS’ RESPONSIBILITY STATEMENT 

TEMENT 

As required under Section 217 (2AA) of the 

Companies Act, 1956 (“the Act”), your Directors 

confirm that: 

i) in the preparation of the Annual Accounts, 


followed along with proper explanation relating 

to material departures, if any; 

ii) the accounting policies selected have been 

applied consistently and judgments and 

estimates are made that are reasonable and 

prudent so as to give a true and fair view of 

the state of affairs of your company as at 31 st 

March, 2011; 

iii) proper and sufficient care has been taken for 

the maintenance of adequate accounting 

records in accordance with the provisions of 

the Act for safeguarding the assets of your 

Company and for preventing and detecting 

the fraud and other irregularities; and 

iv) the Directors had prepared the annual 

accounts on a going concern basis. 

AUDI 

UDITOR 

ORS’ S’ REPORT 

There are no adverse comments, observation or 

reservation in the Auditors’ Report on the Annual 

Accounts of your Company. 

The Notes to the Accounts referred to in the 

Auditors’ Report are self explanatory and therefore 

do not call for any further comments from the 

Directors under Section 217(3) of the Act. 

PAR 

ARTICULAR 

TICULARS OF EMPLOYEES 

Section 217(2A) of the Act read with the 

Companies (Particulars of Employees) Rules, 1975 

do not apply to your Company as none of its 

employees are covered under these provisions. 

CONSERVATION OF ENERGY 


GY 

ABSORPTION, FOREIGN EXCHANGE 

EARNINGS & OUTGO 


not carry any commercial / business activity and 

accordingly particulars under conservation of 

energy, technology absorption, foreign exchange 

earnings and outgo are not applicable. 

AUDI 

UDITOR 

ORS 

M/s G.P. Kapadia & Co., Chartered Accountants, 

Mumbai the existing Auditors will retire at the 

ensuing Annual General Meeting of your Company. 

They being eligible to be re-appointed have 

expressed their willingness to be re-appointed as 

the Statutory Auditors of your Company for the 

financial year 2011-12. A resolution seeking your 

approval for the re-appointment of the said 

Auditors is included in the Notice convening the 

Annual General Meeting. 

ACKNO 

CKNOWLEDGEMENT 

The Board of Directors wish to place on record 

their appreciation for the support and co-operation 

extended by UltraTech Cement Limited, the 

Auditors and the Bankers of your Company. 

For and on behalf of the Board of Directors 

Place: Mumbai 


O. P. PURANMALKA 

K. C. BIRLA 

} 

Directors 

96


AUDI 

UDITOR 

ORS’ REPORT 

To the Shareholder’s of Dakshin Cements 

Limited 

We have audited the attached Balance Sheet of 

Dakshin Cements Limited as at 31 st March, 2011. 

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 

31 st March, 2011, and taken on record by 

the Board of Directors, we report that 

none of the directors is disqualified as on 

31 st March, 2011 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 31 st March, 2011. 



(Firm No. 104768W) 

ATUL B. DESAI 

Partner 

(Membership No. 30850) 


97 ⊳


Balance Sheet as at March 31, 2011 

Schedules 

As at 

As at 

31 st March, 2011 31 st March, 2010 

Rupees 

Rupees 

Rupees Rupees 

I. SOUR 

URCES OF FUNDS: 


Share Capital 

al 1 500,0 

0,000 500,000 

Loan Funds 

— — 

500,0 

0,000 500,000 

II. 

APPLICATION OF FUNDS: 

Fixed 

Assets 

2 

Gross block — — 

Less : Depreciation — — 

Net block — — 

Captial Work in progress — — 

Incidental Expenditure pending 

allocation / capitalisation 3,410,479 

3,410,479 

2,218,983 2,218,983 

Current 


dvances 

3 653,741 

552,001 

653,741 

552,001 

Less : Current rent Liabilities and Pro 

rovisions 

4 3,601,61 

1,614 (2,947,873) 

,873) 2,308,378 (1,756,377) 


(to the extent not written off or adjusted) 37,394 

37,394 

500,0 

0,000 500,000 

Notes on Accounts 5 

As per our report attached. 



ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA 

Partner Director Director 



98


Schedules forming part of the Balance Sheet 

Rupees 

As at 

As at 

31 March, 

31 st March, 

2011 2010 

Schedule - 1 

SHARE CAPITAL 

AL 

Authorised 

500,000 Equity shares of ` 10 each 5,000,0 

0,000 5,000,000 

Issued and Subscribed 

50,000 Equity shares of ` 10 each 

fully paid (All the shares are held by 

UltraTech Cement Limited, 

the holding Company) 500,0 

0,000 500,000 

Schedule - 2 

FIXED ASSE 

SSETS 

Gross block – – 

Less : Depreciation – – 

Net block – – 

Captial work in progress – – 

Incidental Expenditure pending 

allocation /capitalisation 3,410,479 

2,218,983 

3,410,479 

2,218,983 

Schedule - 3 

CURRENT ASSE 

SSETS 

TS, , LOANS 

AND ADVANCES 

ANCES 

Cash and Bank Balances 

Cash on Hand 241 241 

Balance with Scheduled Bank on currentt account 200,305 

0,305 200,305 

200,546 

0,546 200,546 

Loans and Adv 

dvances unsecured, considered good 

TCS Receivable 28,817 14,151 

Advances recoverable in cash or in kind or for value to be received 424,378 337,304 

Total 653,741 

552,001 

Schedule - 4 


AND PROVISIONS 

Liabilities 

Due to UltraTech Cement Limited 

(The Holding Company) 3,386,382 2,098,661 

Due to Others 171,1 

71,187 

87 171,187 

Other liabilities 44,045 38,530 

Total 3,601,61 

1,614 2,308,378 

99 ⊳


Schedule - 5 

NOTES ON ACCO 

CCOUNTS 

1. Significant Accounting Policies: 

The Company maintains its accounts on accrual basis following the historical cost convention in accordance 

with generally accepted accounting principles (“GAAP”) and in compliance with the accounting standards 

referred to in Section 211 (3C) and other requirements of the Companies Act, 1956, to the extent applicable. 

2. As the Company has not yet started commercial operation no Profit & Loss Account has been prepared. 

The statement showing the unallocated, pre- operative expenditure incurred up to 31 st March 2011 is shown 

in Schedule - 2. 

3. The pre-operative expenditure as under pending allocation will be allocated to appropriate fixed assets on 

commencement of the commercial production: 

Incidental expendit 

xpenditure pending allocation/capitalisation 

alisation 

As at 

As at 

31 st March, 

31 st March, 


Rupees 

Rupees 

Travelling and conveyance 134,629 134,629 

Subscription 1,000 1,000 

Survey expenses 90,750 90,750 

Testing charges 8,000 8,000 

Consultancy Charges 589,048 2,500 

Auditors’s remuneration 85,445 79,930 

Printing & Stationery 3,764 

3,764 

Office expenses 2,745 

2,745 

Bank charges 13,022 11,831 

Directors sitting fees 7,50 

,500 7,500 

Filing fees 33,770 33,770 

Royalty/dead rent 2,096,280 1,516,598 

Legal fees 287,0 

,000 287,000 

Interest 30,641 12,081 

Miscellaneous expenses 26,885 26,885 

Tot 

otal 

3,410,479 

2,218,983 

4) Contingent liabilities - Nil. 

5) Previous year figures have been regrouped wherever necessary. 

Signature to Schedule 1 to 5 

As per our report attached. 



ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA 




100


Balance Sheet abstract and Company’ 

y’s General Business Profile 

I. Registration Details 

Registration No. 0 1 - 0 1 6 0 0 2 State Code 0 1 


II. Capital raised during the year (Amount in Rs. Thousands) 

Public Issue 

Rights Issue 

N I L N I L 

Bonus Issue 


N I L N I L 

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) 


Total Assets 

5 0 0 5 0 0 

Sources of Funds : 

Paid up Capital 

Reserves & Surplus 

5 0 0 N I L 

Secured Loans 


N I L N I L 

Application of Funds : 

Net Fixed Assets 

Investments 

3 4 1 1 N I L 

Net Current Assets 


( 2 9 4 8 ) 3 7 

Accumulated Losses 

N I L 

IV. Performance of the Company (Amount in Rs. Thousands) 

Turnover (including other income) 


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 (Rs.) Dividend Rate (%) 

N A 

N A 

V. Generic Names of Three Principal Products / Services of the Company (as per monetary terms) 

No Activities during the year 

K. C. BIRLA O. P. PURANMALKA 

Director 

Director 


101 ⊳

HARISH CEMENT LIMITED 

DIRECTOR 

OR’S REPORT 


Your Directors have pleasure in presenting the Fifteenth 

Annual Report together with the Audited Accounts of 

your Company for the year ended 31 st March 2011. 

OPERATIONS 

During the year under review, your Company incurred 

an expenditure of ` 22.52 crores towards purchase of 

land for plant and mining site area. It also incurred 

preoperative expenses of ` 4.34 crores. 

Your Company did not carry on any business activities 

and accordingly no Profit & Loss account has been 

prepared. 

FIXED DEPOSITS 

Your Company has not accepted any fixed deposit 

during the year ended 31 st March, 2011. 

DIRECTOR 


TEMENT 

As required under Section 217 (2AA) of the Companies 

Act, 1956 (“the Act”), your Directors confirm that: 

i) in the preparation of the Annual Accounts, 


followed along with proper explanation relating to 

material departures, if any; 

ii) the accounting policies selected have been applied 

consistently and judgments and estimates are 

made that are reasonable and prudent so as to 

give a true and fair view of the state of affairs of 

your company as at 31 st March, 2011; 

iii) proper and sufficient care has been taken for the 

maintenance of adequate accounting records in 

accordance with the provisions of the Act for 

safeguarding the assets of your Company and for 

preventing and detecting the fraud and other 

irregularities; and 

iv) the Directors had prepared the annual accounts 

on a going concern basis. 

AUDI 

UDITOR 



reservation in the Auditors’ Report on the Annual 


The Notes to the Accounts referred to in the Auditors’ 

Report are self explanatory and therefore do not call 

for any further comments from the Directors under 

Section 217(3) of the Act. 

PAR 

ARTICULAR 


Section 217(2A) of the Act read with the Companies 

(Particulars of Employees) Rules, 1975 do not apply to 

your Company as none of its employees are covered 

under these provisions. 



GY 

ABSORPTION, FOREIGN EXCHANGE EARNINGS & 

OUTGO 

During the year under review, your Company did not 

carry any commercial / business activity and 

accordingly particulars under conservation of energy, 

technology absorption, foreign exchange earnings and 

outgo are not applicable. 

AUDI 

UDITOR 

ORS 

M/s G.P. Kapadia & Co., Chartered Accountants, 

Mumbai the existing Auditors will retire at the ensuing 

Annual General Meeting of your Company. They being 

eligible to be re-appointed have expressed their 

willingness to be re-appointed as the Statutory Auditors 

of your Company for the financial year 2011-12. A 

resolution seeking your approval for the re-appointment 

of the said auditors has been included in the Notice 

convening the Annual General Meeting. 

ACKNO 

CKNOWLEDGEMENT 

The Board of Directors wish to place on record their 

appreciation for the support and co-operation extended 

by UltraTech Cement Limited, the Auditors and the 

Bankers of your Company. 


Place: Mumbai 


R. M. Gupta Arun Daga 

Director 

Director 

102


AUDI 

UDITOR 

OR’S REPORT 

To the Shareholder’s of Harish Cement Limited 

We have audited the attached Balance Sheet of Harish 

Cement Limited as at 31 st March, 2011. 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 


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 required by the Companies (Auditors’ Report) 

Order, 2003 issued by the Central Government of 

India in terms of Section 227(4A) of the Companies 

Act, 1956 we give in the Annexure a Statement 

on the matters specified in paragraph 4 and 5 of 

the said order. 

2. Further to our comments in paragraph 1 above, 

we report that : 

(a) 

(b) 

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; 

in our opinion, proper books of account as 

required by law have been kept by the 

(c) 

(d) 

(e) 

(f) 

Company so far as appears from our 


the balance sheet dealt with by this report is 

in agreement with the books of account; 

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; 

on the basis of written representations 

received from the directors as on 31st March, 

2011, and taken on record by the Board of 

Directors, we report that none of the directors 

is disqualified as on 31st March, 2011 from 

being appointed as a director in terms of 

Section 274(1)(g) of the Companies Act, 1956; 

and 

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, 2011. 

G. P Kapadia & Co 


(Firm No 104768W) 

ATUL B. DESAI 

Partner 

(Membership No 30850) 

Mumbai, 18 th April 2011 

103 ⊳


ANNEXURE TO THE AUDI 

UDITOR 

OR’S REPORT 

(Ref 

efer 

erred red to in paragraph 1 of our report of even en date) 

(i) 

(ii) 

Having regard to the nature of the Company’s 

business/ activities/ results clauses (ii) regarding 

inventory, (vii) internal audit system, (viii) 

maintenance of cost records, (ix) regarding 

undisputed statutory dues, (x) regarding cash loss 

incurred by the Company, (xi) regarding default in 

repayment, (xii) regarding loans and advances given 

by way of pledge, (xiii) regarding chit fund, nidhi / 

mutual benefit fund / societies, (xiv) regarding 

dealing or trading in shares, securities, debentures 

and other investments, (xv) regarding guarantee 

given for loans taken, (xvi) regarding term loans 

applied for the purpose for which it was obtained, 

(xvii) regarding use of short term fund used for 

long term purpose, (xviii) regarding preferential 

allotment to parties covered in register maintained 

under section 301 and (xix) securities and charge 

created in respect of debentures of CARO are not 

applicable. 

In respect of its fixed assets: 

(a) 

(b) 

(c) 

The Company has maintained proper records 

showing full particulars, including quantitative 

details and situation of fixed assets. 

Some of the fixed assets were physically 

verified during the year 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. 

The fixed assets disposed off during the year, 

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) According to the information and explanations 

given to us, the Company has neither granted nor 

taken any loans secured or unsecured loans to/ 

from companies, firms or other parties listed in 

the Register maintained under Section 301 of the 


(iv) 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 the 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 weaknesses in such internal control 

system. 

(v) 

To the best of our knowledge and belief and 

according to the information and explanations given 

to us, there were no contracts or arrangements, 

particulars of which needed to be entered in the 

Register maintained under Section 301 of the 


(vi) 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 


(vii) During the year, the Company has not raised 

money by issue of shares to public. 

(viii) 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 explanation 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 G.P. . KAPADIA ADIA & CO. 


(Registration NO.104768W) 

Atul B. Desai 

Partner 


Mumbai, 18 th April 2011 

104


Balance Sheet as at 31 March, 2011 

(Amount in ` Lacs) 

Schedules 

As At 

As At 

31/03/2011 31/03/2010 

SOUR 



Share Capital 1 5.00 5.00 

Reserves and Surplus — — 

Loan Funds 

Secured Loans — — 

Unsecured Loans 2 12,459.39 7,639.44 

TOTAL 

12,464.39 

7,644.44 


Fixed 

Assets 

3 

Gross Block 7,0 

,010.1 

0.15 4,754.68 

Less : Depreciation 18.90 

12.28 

Net Block 6,991.25 

4,742.40 

Capital Work-in-Progress 3,070.75 2,663.61 

10,062.0 

0,062.00 7,406.01 

Investments 

— — 

Current 


dvances 

Inventories — — 

Sundry Debtors — — 

Cash and Bank Balances 4 12.99 2.76 

Loans and Advances 5 2,587.56 

.56 390.4 

2,600.55 

0.55 393.16 

Less : 


rovisions 

Liabilities 6 198.1 

98.16 154.73 

Provisions — — 

198.1 

98.16 154.73 

Net Current 

rent Assets 

2,402.39 238.43 

Balance as per attac 

ached Profit and Loss 

Account 

TOTAL 

12,464.39 7,644.44 


7 

As s the company y has not started operation, so P&L is not prepared. 

As per our report of even date 

For G.P.Kapadia & Co. 


Atul B. Desai (R.M.GUPTA) (P.K.JAIN) 



Mumbai, 18 th April, 2011 

105 ⊳


Schedules forming part of the Balance Sheet 


As At 

As At 


SCHEDULE - 1 

SHARE CAPITAL 

AL 

Authorised 

50,00,000 Equity Shares of ` 10/- each 500 500 

500 500 

Issued, Subscribed & Paid-up * 

50,000 Equity Shares of ` 10/- each 5.00 5.00 

TOTAL 

5.00 5.00 

* Full Share capital is held by the Holding company. 

SCHEDULE - 2 


From Holding Company 12,1 

2,157 

57.02 

7,383.53 

Bank Overdraft 302.37 255.91 

TOTAL 

12,459.39 

7,639.44 

SCHEDULE - 3 

FIXED ASSE 

SSETS 

Sr. 

PAR 

ARTICULAR 

TICULARS 

No. 

GROSS BLOCK 

DEPRECIATION 

NET T BLOCK 

As at 

Additions 

Adjustments / 

As at 

Upto 

For or the Adjustments / 

Up to 

As at 

As at 

01/04/20 

1/04/2010 Deductions 31/03/2011 31/03/2010 Year 

Deductions 31/03/2011 31/03/2011 31/03/2010 

1 FREEHOLD LAND 4,721.29 2,251.44 0 6,972.73 0 – – – 6,972.73 4,721.28 

2 – – – – – – – – – – 

3 BUILDINGS – – – – – – – – – – 

4 RAILWAY SIDINGS – – – – – – – – – – 

5 PLANT AND MACHINERY – – – – – – – – – – 

6 SHIPS – – – – – – – – – – 

7 ROLLING STOCKS AND 

LOCOMOTIVES – – – – – – – – – – 

8 FURNITURE, FIXTURES & 

OFFICE EQUIPMENT 29.66 4.43 0.40 33.69 11.89 5.78 0.27 17.40 16.29 17.77 

9 VEHICLES ETC. 0.92 0.00 0.92 0.22 0.18 0 0.40 0.52 0.70 

10 INTANGIBLE - ASSETS 2.81 0.00 0 2.81 0.16 0.94 0 1.10 1.71 2.65 

TOTAL 

AL 4,754.68 2,255.87 0.40 7010.1 

0.15 12.27 6.90 0.27 18.90 

6,991.25 

.25 4,742.40 

42.40 

Pre 

revious 

Year 

22.93 4,731.75 

0.00 4,754.68 7.35 

4.93 0.00 12.28 

Capital Work-in-Progress 

(including advances and 

Project Dev. Exp.) * 3,070.75* 2,663.61 

TOTAL 

10,062.0 

0,062.00 7,406.0 

,406.01 

Capital work in progress includes the followings: 

* Details 

To date 

Amount 

(` Lacs) 

1 Project Development Exp 1,297.81 # 

2 Cost of Mining Rights (Acquired from HCIL) 755.00 

3 Stamp fees of Mining lease deed 42.13 

4 Advance against land purchase-Mines 441.11 

5 Advance against land purchase-Plant 253.21 

6 Rehabilitation & Resettlement exps 264.98 

7 Advance for Stamp Duty 16.51 

Tot 

otal 

3,070.75 

# For detail refer Note No. 1 of Schedule No. 7-B. 

106



As At 

As At 


SCHEDULE - 4 

CASH 


Cash balance on hand 0.61 0.61 

Cheques on hand — — 

Bank Balances : 

With Scheduled Banks : 

In Current accounts 

(including cheque under collection) 12.38 2.15 

In Fixed deposit accounts — — 

TOTAL 

12.99 2.76 

SCHEDULE - 5 

LOANS 

AND ADVANCES 

ANCES 

(Unsecured, considered good except stated otherwise) 

Deposits and Balances with 

Government and other Authorities 2546.70 332.35 

Other Deposits 0.50 0.50 

Advance recoverable in cash or kind or for value to be received. 40.36 57.55 

Considered Good 

TOTAL 

2587.56 

390.40 

SCHEDULE - 6 


Sundry creditors : 

a) Small scale industrial undertakings — — 

(To the extent identified with 

available information) 

b) Others 196.66 

152.78 

Interest Accrued on Bank OD — 0.09 

Security and Other Deposits — — 

Provision for expenses 0.35 0.36 

TDS Payable 1.1 

.15 1.50 

TOTAL 

AL 198.1 

98.16 154.73 

107 ⊳


SCHEDULE - 7 

ACCO 


CCOUNTS 

A. Significant Accounting Policies: 

1 Accounting Concepts: 

The financial statements are prepared under the historical cost convention on an accrual basis and 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 expendit 

xpenditure 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. The 

estimated useful lives are as follows. 

Assets 

No of Years 

Office Equipment 4 

Computers 4 

Furniture & Fittings 7 

Motor cycles 5 

Intangible-Assets(Software) 3 

Mobile sets 3 

Depreciation on additions/deductions is calculated pro-rata from/ to the month of addition/deduction. 

6 Bor 

orro 

rowing Costs: 

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalised 

as part of the cost of such asset till such time asset is ready for its intended use. A qualifying asset is 

an asset that necessarily takes a substantial period of time to get ready for its intended use. All other 

borrowing costs are recognised as an expense in the period in which they are incurred. 

7 Pro 

rovisions,Contingent Liabilities and Contingent Assets: 

Provision are recognised when there is a present obligation as a result of past events and it is probable 

that there will be an outflow of resources which can be measured only by using of substantial degree 

of estimation. 

Contingent Liabilities are not recognised but disclosed and Contingent Assets are neither recognised 

nor disclosed, in the financial statements. 

B. NOTES ON ACCO 

CCOUNTS 

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 : 

108


For the year 

For the year 

Project Development elopment Expenditures 

Account 

(April to Mar) 2009-20 


(Included under Capital al work-in-progress) 



Opening Balance 863.86 642.21 

Add : 

Advertisement Expenses 6.57 6.58 

Architectural Services (Office Interior) 0.00 0.00 

Audit Fees 0.05 0.05 

Bank Charges 0.54 0.10 

Bank Charges(BG) 0.53 0.00 

Books & Periodicals 0.05 0.08 

Casual Salary & Wages 12.27 9.14 

Computer Maintenance Exps. 0.06 0.04 

Consultancy Charges 8.75 30.04 

Contribution to HimShree Ladies Club 0.08 0.08 

Conveyance Expenses 11.27 

8.03 

Depreciation 6.90 4.92 

Drilling / Exploration Exps. 0.00 0.02 

Electricity Charges 0.94 0.76 

EIA/EMP/SIA Exp 0.15 0.56 

Environment & Pollution Control Exp 214.90 0.00 

Environment Protection Exps (Green Belt) 0.10 0.00 

Festival Celebrations 0.12 0.34 

General Expenses 0.65 0.80 

General Insurance premium 0.69 0.28 

Gift Expenses 3.68 3.39 

Guest Entertainment Exps. 0.54 0.59 

Guest House Expenses 1.72 

1.33 

HRMS Services Charges 0.00 0.25 

Interst on Bank OD 2.64 0.09 

I.T.Services Expenses 0.00 0.02 

Lab Consumable Expenses 0.00 1.17 

L.A.O- Office Exp 9.27 8.10 

Land Development Expenses - Plant 3.42 57.47 

Land Development Expenses - Mining 3.69 0.00 

Loss on sale of Fixed Assets 0.01 0.00 

Legal & Professional Charges 68.72 18.55 

Postage & Telegram Expenses 0.27 0.32 

Printing & Stationery Expenses 3.90 4.79 

Prospecting / Exploration Exp. 0.00 10.13 

Rates & Taxes 10.1 

0.15 7.16 

Recruitment Exp. 0.65 0.00 

Rent(Office & Guest House) 7.30 

.30 7.60 

Repair & Maintenance Exp. 0.92 0.55 

Sample Testing 0.00 2.60 

Security Watch and Ward Expenses 3.91 0.00 

Social Welfare Activities Expenses 21.95 

.95 21.88 

Soil Testing Exp 10.85 

1.24 

Staff Welfare Expenses 1.64 

.64 1.39 

Subscription for Membership 0.00 0.02 

Telephone Expenses 1.90 

.90 1.93 

Topographic Survey 0.55 1.22 

Training Exp. 0.00 0.10 

Travelling Expenses 11.42 

7.80 

Vehicle Repair / Running Expenses 0.20 0.14 

Water Exp (Office-Sundernagar) 0.03 0.01 

Tot 

otal 

433.95 221.66 

Closing Balance – 1,297.81 

– 863.86 

109 ⊳


2 Estimated amount of Contracts remaining to be executed on capital account and not provided (advance 

paid ` 820.82 lacs) ` 7,881.97 Lacs (LY- ` 9,020.31 Lacs) 

3 On writ petitions filed by certain land pwners challenging acquisition of private land by the Govt. of HP 

for setting up of Cement Plant of the Company and environmental clearance granted to the project, the 

Hon’ble High Court of Himachal Pradesh passed and order quashing the land aquisition by the Govt. of 

HP and also quashed the environmental clearance granted for the project on procedural grounds. The 

Company has filed SLIP challenging the Hon’ble High Court’s order in the Hon’ble Supreme Court of 

India on 14.01.2011, which has been admitted on 04.03.2011. 

4 The Govt. of HP has approved a model Rehabilitation and Resettlement Scheme for project affected 

families. Company will adhere for implementation of the above plan in accordance with the provisions 

of the Scheme, however, the financial quantum of the same is not ascertainable at this stage. 

5 Previous year figures have been regrouped wherever necessary. 

6 Pursuant to a Scheme of Arrangement u/s 391 to 394 of the Companies Act,1956, and amalgamation 

scheme, Shares of Company held by Samruddhi Cement Ltd (holding Company of the Company) have 

been transferred to Ultra Tech Cement Ltd. w.e.f.01-07-2010. Accordingly now the Company is a subsidiary 

of Ultra Tech Cement Ltd. (subsidiary of Grasim Industires Ltd.) w.e.f. 01-07-2010. 

7 Disclosure of related parties/related party transactions: 

A. List of related parties 

Name of the Related Part 

arty 

Nature of Relatioship 

Samruddhi Cement Ltd. (upto 30.06.2010) Holding Company 

UltraTech Cement Ltd. (w.e.f. 01.07.2010) Holding Company 

Grasim Industries Ltd. 

Ultimate Holding Company 

B. Disclosure of related party transactions: 

Sr. . No. Nature of Transaction 


Amount 

in ` Lacs 

1 Loans & Borrowings UltraTech Cement Ltd. 3,348.50 

( - ) 

Samruddhi Cement Ltd. 1425.00 

(2,700.00) 

Grasim Industries Ltd. - 

(2,111.84) 

2 Sale of Fixed Assets UltraTech Cement Ltd. 0.01 

3 Purchases of Stores & Spares UltraTech Cement Ltd. 0.07 

Figures in brackets are pertaining to the previous year 

Outstanding Balance as on 31st Mar, 2011 

Sr. . No. Nature of Transaction 


Amount 

in ` Lacs 

1 Unsecured loans Ultra Tech Cement Ltd. 12,157.02 

Samruddhi Cement Ltd. *(7,383.53) 

Figures in brackets are pertaining to the previous year 

* Samruddhi Cement Ltd 

6 Auditors remuneration (excluding service tax) and expenses charged to the accounts 

Stat 

atutor 

utory Auditors 

Amount in ` Lacs 



09-10 

1 Audit fees 0.05 0.05 

2 Expenses - - 

110


CASH FLOW STATEMENT TEMENT FOR THE YEAR ENDED MARCH,20 

CH,2011 

Amt in ` (Lacs) 

Current 

rent Year 

Pervious Year 

A. Cash Flow from Operating Activities 


Advances and Receivables (2,197 

97.1 

.16) 

(150.27) 

Trade Payables (0.36) 255.89 

Net Cash from/(used in)Operating activities (2,197 

97.52) 

105.62 

B. Cash Flow from Investing Activities 

Purchases of Fixed Assets (2,255.87) (4,731.75) 

CWIP(Advances & Projet Dev. Expes) (356.36) (228.72) 

Sale of fixed assets 0.12 - 

Net Cash from/(used in) investing activities (2,612.1 

2.11) 

1) (4,960.47) 

C Cash Flow from Financing Activities 

Increase in working capital loan 46.37 

Borrowings from Holding Co. 4,773.49 4,811.84 

Net Cash from/(used in) Financing activities 4,819.86 

4,811.84 

D Net increase/(Decrease) in Cash and Cash equivalent 10.23 

(43.01) 

Cash and Cash equivalent at beginning of the year 2.76 45.77 

Cash and Cash equivalent at end of the year 12.99 2.76 

(Cash and cash equivalent represent cash and bank balances) 

For G.P.Kapadia & Co. 


Atul B. Desai (R.M.GUPTA) (P.K.JAIN) 




111 ⊳




I. Registration Details 

Registration No. 0 6 - 1 9 1 7 3 State Code 0 6 


II. Capital raised during the year (Amount in Rs. Thousands) 

Public Issue 

Rights Issue 

N I L N I L 

Bonus Issue 


N I L N I L 

III. Position of Mobilisation and Deployment of Funds (Amount in Rs. Lacs) 


Total Assets 

1 2 6 6 3 1 2 6 6 3 




5 N I L 

Secured Loans 


N I L 1 2 4 5 9 



Investments 

1 0 0 6 2 N I L 



2 4 0 2 N I L 


N I L 

IV. Performance of the Company (Amount in Rs. Thousands) 

Turnover (including other income) 


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 A 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) 

Director Director 



ULTRATECH CEMENT LANKA (PVT) LIMITED 

DIRECTOR 


The Directors of UltraTech Cement Lanka (Pvt) Limited 

have pleasure in presenting the Annual Report of the 

Company for the year ended 31 st March, 2011. 

PRINCIPAL 

ACTIVI 

CTIVITIES 

TIES 

The principal activity of the Company is carrying on 

business of importers, exporters, distributors, 

warehousemen, wholesalers, retailers and dealers of 

cement and to establish storage terminal and other 

facilities for the bagging and distribution of bulk cement. 

PROFI 

OFIT & LOSS ACCO 

CCOUNT 

Year ended 

Year ended 

31.03.20 

.03.2011 31.03.2010 

SLR (Millions) SLR (Millions) 

Turnover 6,238 6,171 

Cost of Sales (5,682) (5,647) 

Gross Profit 556 524 

Other Operating Income 69 16 

Administration expenses (61) (56) 

Distribution expenses (126) 

(133) 

Profit from Operation 438 351 

Finance Income – Net 44 38 

Profit before Taxation 482 389 

Taxation (205) (154) 

Net Profit for the year 

277 235 

Earnings per Share 5.53 4.70 

ACCO 

CCOUNTING POLICIES 

The accounting policies are consistent with those used 

in the previous year and no significant changes. 

DIVIDEND 

The dividend recommended by the Board at a meeting 

of the Board of Directors will be declared at the Annual 

General Meeting. 

DIRECTOR 

ORS 

During the year under review, there have been no 

changes in the Directorate of the Company. 

DIRECTOR 

ORS INTEREST T IN CONTRACTS 

CTS 

The Directors of the company have no direct or indirect 

interest in any contract or proposed contract of the 

Company, except those specified in Note 26 to the 

financial statements. 

AUDI 

UDITOR 

ORS 

Messrs KPMG Ford Rhodes Thornton & Co., Auditors 

of the Company retire and being eligible, are 

recommended by the Board of Directors for reappointment 

at the Annual General Meeting of the 

Company. 

Remuneration of the Auditors for the year ended 

31 st March, 2011 is shown in Note 12 to the Financial 

Statements. 

4 th May, 2011 

Colombo 

By Order of the Board 

Sgd. (Authorized Signatory) 

SPA Corporate Services (Pvt) Limited 

Secretaries for UltraTec 

ech Cement Lanka 

(Pvt) limited. 



REPORT T OF THE AUDI 

UDITOR 

ORS 

TO THE SHAREHOLDER 

OLDERS OF ULTRA 

TRATECH TECH CEMENT LANKA (PVT) LIMITED 

Report on the Financial Statements 

We have audited the accompanying financial 

statements of UltraTech Cement Lanka (Private) 

Limited, which comprise the balance sheet as at March 

31, 2011 and the income statement, statement of 

changes in equity and cash flow statement for the 

year then ended, and a summary of significant 

accounting policies and other explanatory notes. 

Management’s Responsibilit 

esponsibility for the Financial 

Statements 

Management is responsible for the preparation and 

fair presentation of these financial statements in 

accordance with Sri Lanka Accounting Standards. This 

responsibility includes: designing, implementing and 

maintaining internal control relevant to the preparation 

and fair presentation of financial statements that are 

free from material misstatement, whether due to fraud 

or error; selecting and applying appropriate accounting 

policies; and making accounting estimates that are 

reasonable in the circumstances. 

Scope of Audit and Basis of Opinion 

Our responsibility is to express an opinion on these 

financial statements based on our audit. We conducted 

our audit in accordance with Sri Lanka Auditing 

Standards. Those standards require that we plan and 

perform the audit to obtain reasonable assurance 

whether the financial statements are free from material 

misstatement. 

An audit includes examining, on a test basis, evidence 

supporting the amounts and disclosures in the financial 


accounting principles used and significant estimates 

made by management, as well as evaluating the overall 

financial statement presentation. 

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. We therefore 

believe that our audit provides a reasonable basis for 

our opinion. 

Opinion 

In our opinion, so far as appears from our examination, 

the Company maintained proper accounting records 

for the year ended March 31, 2011 and the financial 

statements give a true and fair view of the Company’s 

state of affairs as at March 31, 2011 and its profit and 

cash flows for the year then ended in accordance with 

Sri Lanka Accounting Standards. 

Report on Other Legal and Regulatory Requirements 

These financial statements also comply with the 

requirements of Section 151(2) of the Companies Act 

No.07 of 2007. 

For KPMG FORD, , RHODES 

ODES, THOR 

ORTON ON & CO. 


Colombo, 8th April, 2011 



Balance Sheet as at 31 st March, h, 2011 

31.03.20 


ASSE 

SSETS 

Note 

SLR 

INR SLR INR 

Non-current rent assets 

Operating Lease Prepaid 15 23,874,0 

4,017 9,643,676 25,096,868 9,884,644 

Property, plant & equipment 16 379,360,468 153,238,950 391,278,230 154,108,706 

Deffered tax asset 23 2,580,506 1,042,370 2,479,176 976,447 

405,814,991 163,924,996 418,854,275 164,969,798 

Current rent assets 

Inventories 17 192,586,598 

77,793,472 

164,008,575 64,596,360 

Trade receivables 18 111,1 

1,165,964 

44,904,404 161,113,010 63,455,914 

Value Added Tax recovarable 19 322,394,519 130,228,1 

30,228,112 293,481,295 115,590,440 

Prepayment and advances 55,396,253 22,376,77 

6,776 58,968,942 23,225,488 

Cash and cash equivalents 20 701,043,81 

1,043,812 283,179,790 

458,112,369 180,431,977 

1,382,587,1 

,146 

558,482,553 1,135,684,191 447,300,178 

Tot 

otal assets 1,788,402,137 722,407,549 

,549 1,554,538,466 612,269,976 

EQUITY 

& LIABILITIES 

Equity 

Stated capital 21 500,0 

0,000,0 

0,000 201,970,1 

1,970,109 

09 500,000,000 196,929,825 

Retained Earnings 583,767 

67,634 

235,807,224 

,224 457,134,606 180,046,875 

Tot 

otal Equity 1,083,767 

67,634 

437,777 

,777,333 

,333 957,134,606 376,976,700 

Non-current rent liabilities 

Retiring benefit obligations 22 9,216,093 3,722,750 7,083,361 2,789,850 

Deferred tax liability 23 88,860,149 35,894,188 

88 124,751,758 49,134,684 

98,076,242 

39,616,939 131,835,119 51,924,535 

Current rent liabilities 

Trade payables 24 260,596,223 105,265,295 

349,778,481 137,763,630 

Accrued expenses 32,488,420 13,123,379 20,437,790 8,049,621 

Income tax payables 137 

37,435,71 

,435,715 55,515,814 72,144,247 28,414,709 

Dividend payable 108,0 

08,000,0 

0,000 43,625,543 

Other payables 25 68,037,903 

,903 27,483,245 

23,208,222 9,140,782 

606,558,261 245,013,277 

465,568,740 183,368,741 

Total liabilities 704,634,503 284,630,216 597,403,859 235,293,276 

Tot 

otal al equity y and liabilities 1,788,402,137 

37 722,407,549 

,549 1,554,538,465 612,269,976 

The figures in INR is converted at the rate of 2.4756 = 110.4/44.595 

2.5389 = 114/44.9 

The Accounting Policies and Notes form an integral part of these Financial Statements. 

The Directors are responsible for the preparation and presentation of these Financial Statements 

signed for and on behalf of the Board 

K. C. Birla A. R. Gunawardena 

Director 

Director 

8 th April, 2011 

Colombo 



Income Statement for the period ended 31 st March, h, 2011 

Note 


SLR 

INR 

SLR 

INR 

Revenue 9 6,238,661,784 2,488,097,31 

,310 6,171,011,027 2,565,530,758 

Cost of sales (5,681,832,952) (2,265,639,126) (5,646,900,463) (2,354,388,925) 

Gross profit 556,828,832 222,458,184 524,110,564 211,141,833 

Other operating income 10 68,707,568 27,401,888 16,042,833 6,669,633 

Administrative expenses (61,375,239) (24,499,010) 

0) (56,089,242) (23,186,658) 

Distribution cost (126,460,464) (50,456,019) 

(132,965,660) (55,228,470) 

Finance income - Net 11 44,299,440 23,634,202 37,551,215 2,967,035 

Profit before income tax 

12 482,000,1 

0,137 

198,539,245 

388,649,711 142,363,374 

Income Tax expenses 

13 (205,367,1 

,110) 

0) (82,956,035) (153,611,946) (60,501,547) 

Net profit for the year 

276,633,028 

115,583,21 

5,583,210 235,037,765 81,861,827 

Earnings per share - Rs 14 5.53 2.31 4.70 1.64 

Statement of changes in equity 

For the period ended 31st March, 2011 

Share 

Capital 

SLR 

Retained 

Earnings 

SLR 

Tot 

otal 

SLR 

Balance as at 1st April, 2009 

09 500,0 

0,000,0 

0,000 272,096,842 772,096,842 

Dividend 2009 - (50,000,000) (50,000,000) 

Profit for the year - 235,037,765 235,037,765 

Balance as at 31st March, h, 2010 500,0 

0,000,0 

0,000 457,1 

,134,606 

957,1 

,134,606 

Dividend 2010 - (150,000,000) (150,000,000) 

Profit for the year - 276,633,028 276,633,028 

Balance as at 31st March, h, 2011 500,0 

0,000,0 

0,000 583,767 

67,634 

1,083,767 

67,634 

The Accounting Policies and Notes form an integral part of these Financial Statements. 



Cash Flow w Statement for the period ended 31 st March, h, 2011 

Year ended 

Year ended 

31.03.20 


CASH FLOWS FROM OPERATING 

ACTIVI 

CTIVITIES 

TIES 

SLR 

INR 

SLR 

INR 

Profit before tax 482,000,1 

0,137 

198,539,245 

388,649,711 142,363,374 

Adjustment for 

Depreciation on property, plant and equipment 43,961,028 17,757 

,757,628 

,628 38,624,063 15,212,486 

Amortization of leasehold land 1,222,851 493,959 1,222,842 481,628 

Provision for retiring gratuity 3,651,687 1,475,063 2,541,416 1,000,961 

Provision (Reversal of provision) for bad and doubtful debts - - - 6,656,159 

Interest income (38,153,91 

53,913) 

3) (15,21 

5,216,508) 

(21,358,911) (8,879,735) 

Interest expense 

Property plant & machinery written off 4,327,980 

,980 1,726,081 - - 

(Gain)/loss on translation of foreign currency 1,990,192 

92 (8,676,506) - - 

Gain/(loss) on disposal of property, plant and equipment (140,308) 

(55,957) (106,806) (44,404) 

Operating profit before working capital al changes 

496,869,461 206,709,703 416,228,473 144,225,030 

(Increase )/decrease in inventories (28,578,023) (13,1 

3,197 

97,1 

,112) 

146,606,393 71,217,357 

(Increase )/decrease in trade and other receivables 24,606,510 4,974,223 

4,223 (157,233,324) (42,664,071) 

Increase /(decrease) in trade and other payables (32,301,947) 

(7,627 

,627,1 

,101) 

1) 180,149,537 59,199,856 

(36,273,460) (15,849,990) 169,522,607 87,753,142 

Cash generated from operations 460,596,002 

02 190,859,71 

90,859,712 585,751,081 231,978,172 

Interest expense paid - - 

Income tax paid (176,068,581) 

(71,121,1 

21,181) 

(69,255,611) (26,784,922) 

Retiring gratuity paid (1,518,955) 

(613,567) 

- - 

Net cash flow from operating activities 283,008,466 

08,466 119,1 

9,124,964 

516,495,470 205,193,250 

CASH FLOWS FROM INVESTING 

ACTIVI 

CTIVITIES 

TIES 

Purchase and construction of property, plant & equipment (36,404,606) (14,705,284) (3,571,917) (1,406,834) 

Interest income received 38,153,913 15,216,508 21,358,911 8,879,735 

Proceeds on disposal of property, plant and equipment 173,670 

77,1 

,115 159,183 65,033 

Net Cash Flow from Investment activities 1,922,977 588,339 17,946,177 7,537,934 

CASH FLOWS FROM FINANCING ACTIVI 

CTIVITIES 

TIES 

Dividend paid (42,000,0 

0,000) 

0) (16,965,489) (50,000,000) (20,786,957) 

Net cash flow from investing activities (42,000,0 

0,000) 

0) (16,965,489) (50,000,000) (20,786,957) 

Net increase /(decrease) in cash & cash equivalent 

242,931,443 102,7 

02,747 

47,81 

,813 484,441,646 191,944,227 

Cash & cash equivalents at the beginning of the year 458,112,369 

180,431,977 

(26,329,278) (11,512,250) 

Cash & cash equivalents at the end of the year 

701,043,81 

1,043,812 283,179,790 

458,112,369 180,431,977 

The accounting policies and notes from an integral part of these financial statements 



ACCO 


1. REPORTING ENTITY 

TY 

Larsen and Toubro Ceylinco (Pvt) Ltd was incorporated on 29 th August, 1997 as a Private Limited Liability 

Company and domiciled in Sri Lanka. Consequence to the change in the major share holder of the Company, 

the Company was renamed as Ultratech Ceylinco (Pvt) Ltd on 11 th March, 2006. Subsequently, the Company 

changed its name to Ultratech Cement Lanka (Pvt) Limited on 02 nd October, 2009.The company’s registered 

office is No.81/11/1 New Nuge Road, Peliyagoda, Kelaniya. 

1.1 

Principal 

Activities and Nature of Operations 

During the year, the principal activities of the Company was importing naked cement and marketing 

same in 50kg bags and in bulk form. 

1.2 

Parent Enterprise and Ultimate Parent Enterprise 

The Company’s ultimate parent undertaking and controlling party is Ultratech Cement Ltd, which is 

incorporated in India. 

The shareholding structure of the Company as at the Balance Sheet date is as follows; 

• Ultratech Cement Limited 80% 

• Ceylinco Insurance Company Limited 18% 

• Ceylinco International Trading Limited 2% 

1.3 

Date of authorisation for issue 

The financial statements for the year ended 31st March 2011 were authorised for issue in accordance 

with a resolution of the Board of Directors on 08 th April 2011. 

2. BASIS OF PREPARA 

ARATION 

2.1. Statement of compliance 

The financial statements of the Company have been prepared in accordance with the Sri Lanka 

Accounting Standards (SLAS) issued by the Institute of Chartered Accountants of Sri Lanka (ICASL) and 

the requirements of the Companies Act No. 07 of 2007 and Sri Lanka Accounting and Auditing 

Standards Act No.25 of 1995. 

2.2. Basis of measurement 

The financial statements have been prepared on the historical cost basis except that Retirement 

Benefit Obligations are measured at the present value of the Defined Benefit Plan as explained in Note 

22 to the financial statements.. 

2.3. Functional and presentation currency 

rency 

The financial statements are presented in Sri Lankan Rupees, which is the functional currency of the 

Company. 

2.4. Use of Estimates and Judgments 

The preparation of financial statements in conformity with SLAS requires management to make 

judgments, estimates and assumptions that affect the application of accounting policies and the 

reported amounts of assets, liabilities, income and expenses. Actual results may differ from those 

estimates and judgmental decisions. 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 

estimates are recognised in the period in which the estimate is revised if the revision affects only that 

period or in the period of the revision and future periods if the revision affects current and future 

periods. 

Information about significant areas of estimation uncertainty and critical judgments in applying accounting 

policies that have the most significant effect on the amounts recognised in the financial statements is 

included in the following notes: 

• Note 22 – measurement of retirement benefit obligations 

• Note 23 - Deferred tax assets/( liabilities) 

• Note 28 – contingencies 



2.5 Going concern 

The Directors have made an assessment of the Company’s ability to continue as a going concern 

in the foreseeable future, and they do not intend either to liquidate or to cease trading. 

3. SIGNIFICANT ACCO 


The accounting policies set out below are consistent with those used in the previous year. Certain comparative 

amounts have been reclassified to conform to current year’s presentation. 

3.1. Foreign currency rency translation 

Transactions in foreign currencies are translated to Sri Lankan Rupees at the exchange rate applicable 

on the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at 

the reporting date are retranslated to the Sri Lankan Rupees at the exchange rate ruling at that date. 

Foreign currency exchange differences arising on translation are recognised in profit and loss. 

3.2. Assets and bases of their valuation 

Assets classified as current assets on the Balance Sheet are cash and bank balances and those which 

are expected to be realised in cash during the normal operating cycle or within one year from the 

reporting date, whichever is shorter. 

3.2.1. Propert 

roperty, , plant and equipment 

3.2.1.1 

.1. Owned 

Assets 

Items of property, plant and equipment are measured at cost less accumulated 

depreciation and accumulated impairment losses. 

The cost of property, plant and equipment includes expenditure that is directly attributable 

to the acquisition of the asset. The cost of self-constructed assets includes the cost of 

materials and direct labour and any other costs directly attributable to bringing the asset 

to a working condition for its intended use. 

3.2.1.2. 

Subsequent expendit 

xpenditure 

The cost of replacing a part of an item of property, plant & equipment is recogniszed in 

the carrying amount of the item if it is probable that the future economic benefits 

embodied within the part will flow to the Company and its cost can be measured 

reliably. The carrying amount of the replaced part is derecognised. 

The cost of the day-to-day servicing of property, plant & equipment are recognised in 

profit and loss as incurred. 

3.2.1.3. 

.3. Depreciation 

Depreciation is recogniszed in profit and loss on a straight-line basis over the estimated 

useful lives of items of each part of an item of property, plant and equipment. 

The estimated useful lives for the current period are as follows; 

Building 

25 Years 

Plant and Machinery 

18 Years 

Lab Equipment 

06 Years 

Electronic Installation 

18 Years 

Office Equipment 

04 Years 

Motor Cars 

05 Years 

Motor Cycles 

05 Years 

HT Power line 

18 Years 

Computers 

04 Years 

Software 

03 Years 

Furniture & Fittings 

06 Years 

Depreciation of an asset begins when it is available for use and ceases at the earlier of 

the date that the asset is classified as held for sale or is derecognized. 

Depreciation methods, useful lives and residual values are reassessed at the reporting 

date. 

3.2.2. Trade and other receivables 

Trade and other receivables are stated at their amounts estimated to realise. 



3.2.3. Inventories 

Inventories are measured at the lower of cost and net realisable value. Net realisable 

value is the estimated selling price in the ordinary course of business less the estimated 

cost of completion and selling expenses. 

Cost of inventory is based on a Weighted Average Cost price and includes expenditure 

incurred in acquiring the inventories and bringing them to their existing location and 

condition. 

3.2.4. Cash and cash equivalents 

Cash and cash equivalents comprise cash balances and shot term highly liquid investments 

that are readily convertible to known amounts of cash and subject to insignificant risk of 

changes in value. 

Bank overdrafts that are repayable on demand and form an integral part of the Company’s 

cash management are included as a component of cash and cash equivalents for the 

purpose of the Statement of Cash Flows. 

3.2.5. Impairment of assets 

The carrying amount of the Company’s non-financial assets other than inventories and 

deferred tax assets are reviewed at each reporting date to determine whether there is 

an indication of impairment. If any such indication exists or when annual impairment 

testing for an asset is required, then the assets recoverable amount is estimated. 

The recoverable amount of an asset or cash-generating unit is the greater of the value in 

use and fair value less costs to sell. In assessing value in use, the estimated future cash 

flows are discounted to their present value using a pre-tax discount rate that reflects 

current market assessments of the time value of money and the risks specific to the 

asset. In determining fair value less costs to sell, an appropriate valuation model is used. 

An impairment loss is recogniszed if the carrying amount of an asset or cash-generating 

unit exceeds its estimated recoverable amount. Impairment losses are recogniszed in 

profit and loss. An impairment loss is reversed if there has been a change in the 

estimates used to determine the recoverable amount. An impairment loss is reversed 

only to the extent that the asset’s carrying amount does not exceed the carrying amount 

that would have been determined, net of depreciation or amortiszation, if no impairment 

loss had been recogniszed, except for property previously revalued where the revaluation 

was taken to equity. In this case the impairment is also recognised in equity up to the 

amount of any previous revaluation. 

3.3. Liabilities and provisions 

Liabilities classified as current liabilities on the balance sheet are those, which will fall due for payment 

on demand or within one year from the reporting date. 

Non - current liabilities are those balances that fall due for payment after one year from the reporting 

date. 

All known liabilities have been accounted for in preparing the financial statements. 

3.3.1. Employee ee benefits 

3.3.1.1 

.1. Defined benefit plan 

A defined benefit plan is a post-employment benefit plan other than a defined contribution 

plan. The liability recognised in the financial statements in respect of defined benefit 

plans is the present value of the defined benefit obligation as at the reporting date. The 

retirement benefit obligation is calculated by a qualified actuary as at the reporting date 

using the Projected Unit Credit (PUC) method as recommended by Sri Lanka Accounting 

Standard No.16 –”Employee Benefit Costs”. 

The actuarial valuation involves making assumptions about discount rates, salary increment 

rate and mortality rate. Due to the long-term nature of the plans such estimates are 

subject to significant uncertainty. 

120


However, according to the Payment of Gratuity Act No.12 of 1983, the liability for 

payment to an employee arises only after the completion of 5 years continued service. 

The liability is not externally funded. 

3.3.1.2. 

.2. Defined contribution plan 

A defined contribution plan is a post-employment benefit plan under which the Company 

pays fixed contributions into a separate entity and will have no legal or constructive 

obligation to pay further amounts. Obligations for contributions to Provident and Trust 

Funds covering all employees are recognised as an expense in profit and loss in the 

periods during which services are rendered by employees. 

3.3.2. Trade and other payables 

ables 

Trade and other payables are stated at their cost. 

3.3.3. Pro 

rovisions 

A provision is recognised if as a result of a past event, the Company has a present legal or 

constructive obligation that can be estimated reliably, and it is probable that an outflow of 

economic benefits will be required to settle the obligation. 

3.4. Income Statement 

For the purpose of presentation of the Income Statement, the “function of expenses 

method” is adopted, as it represents fairly the elements of Company performance. 

3.4.1. Revenue 

enue 

Revenue from sale of goods is measured at the fair value of the consideration 

received or receivable, net of returns and allowances, trade discounts and volume 

rebates. Revenue is recognised when the significant risks and rewards of 

ownership have been transferred to the buyer, recovery of the consideration is 

probable, the associated costs and possible return of goods can be estimated 

reliably, and there is no continuing management involvement with the goods. 

Gains or losses on the disposal of property, plant and equipment are determined 

by comparing the net sales proceeds with carrying amount. These are included in 

profit and loss. 

Interest income is recognised in the income statement as it accrues. 

3.4.2 Expenses 

All expenditure incurred in the running of the business has been charged to 

income in arriving at the profit for the year. 

3.4.2.1 Operating Leases 

Leases where the lessor effectively retains substantially all the risks and rewards 

of ownership over the lease term are classified as operating leases. Payments 

made under operating leases are recognised in profit and loss on a straight-line 

basis over the term of the lease. 

3.4.2.2 Bor 

orro 

rowing Costs 

Borrowing costs are recogniszed as an expense in the period in which they are 

incurred. 

3.4.2.3 Finance income and expenses 

Finance income / cost comprise interest expense on borrowings, interest income 

on funds invested and gains and losses on translation of foreign currency. 

3.4.2.4 Income Tax 

ax 

Income tax expense comprises current tax and deferred tax. Income tax is 

recognised in profit or loss except to the extent that it relates to items recognised 

directly in equity, when it is recognised in equity. 

Current 

rent Tax 

Current tax is the expected tax payable on the taxable income for the year, using 

tax rates enacted at the balance sheet date, and any adjustment to tax payable 

in respect of previous years. 

121 ⊳


Defer 

erred 

red Tax 

Deferred tax is recognised in respect of temporary differences between the carrying 

amounts of assets and liabilities for financial reporting purposes and the amounts 

used for taxation purposes. 

Deferred tax assets and liabilities are offset if there is a legally enforceable right to 

offset current tax liabilities and assets, and they relate to income taxes levied by the 

same authority on the same taxable entity. 

A deferred tax asset is recognised only to the extent that it is probable that future 

taxable profits will be available against which the temporary differences will be 

utilised. Deferred tax assets are reviewed at each reporting date and are reduced to 

the extent that it is no longer probable that the related tax benefit will be realised. 

Deferred tax liabilities are measured at the tax rates that are expected to apply to 

the year when the liability is settled, based on tax rates (and tax laws) that have 

been enacted or substantially enacted at the reporting date. 

4. CASH FLOW STATEMENT 

TEMENT 

4.1 Cash and cash equivalents 

The cash flow statement has been prepared using the “indirect method”. 

Cash and cash equivalents are defined as cash in hand and demand deposits, readily converted to 

known amounts of cash and subject to insignificant risk of changes in value. 

Interest paid are classified as operating cash flows for the purpose of presentation of Cash Flow 

Statement and reported based on the indirect method. 

4.2 Capital al commitments and contingencies 

Capital commitments and contingent liabilities of the Company are disclosed in the respective Notes to 

the financial statements. 

5. EARNINGS PER SHARE 

The Company Group presents basic earnings per share (EPS) for its ordinary shares. Basic EPS is calculated 

by dividing the profit or loss attributable to ordinary shareholders of the company by the weighted average 

number of ordinary shares outstanding during the period. 

6. EVENTS OCCURRING AFTER BALANCE SHEET DATE 

All material post balance sheet events have been considered and where appropriate adjustment to or 

disclosures have been made in the financial statements. 

7. SEGMENT REPORTING 

A segment is a distinguishable component of the Group that is engaged either in providing products or 

services (business segment), or in providing products or services within a particular economic environment 

(geographical segment), which is subject to risks and rewards that are 

different from those of other segments. Segmental information is not presented as the Company’s 

management and internal reporting structure does not facilitate the extraction of the requested information. 

8. NEW STAND 

ANDARDS 

ARDS AND INTERPRETATIONS TIONS NOT YET ADOPTED 

The Institute of Chartered Accountants of Sri Lanka issued a new volume of Sri Lanka Accounting Standards 

which will become applicable for annual periods beginning on or after 1 st January, 2012. Accordingly these 

Standards have not been applied in preparing these financial statements as they were not effective for the 

period ended 31 st March, 2011. 

The Company is currently in the process of evaluation the potential effect of these Standards on its financial 

statements and the impact on the adoption of these Standards have not been quantified as at the reporting 

date. 

122


Notes to the Accounts for the period ended 31 st March, h, 2011 


SLR 

INR SLR INR 

9. REVENUE 

Turnover-Cement 6,238,661,784 2,488,097,31 

,310 6,171,011,027 2,565,530,758 

10. 

OTHER OPERATING INCOME 

Income from storage and handling 68,546,099 27,337 

,337,492 

,492 15,936,027 6,625,230 

Scrap Sales 21,161 8,439 - - 

Gain/(loss) on disposals of property, 

plant and equipments 140,308 55,957 106,806 44,404 

68,707,568 

,568 27,40 

,401,888 

16,042,833 6,669,633 

11 FINANCE INCOME 

Interest Income 38,153,91 

53,913 15,21 

5,216,508 

21,358,911 8,879,735 

Gain/(loss) on translation of 

foreign currency 6,145,527 8,417,694 

,694 16,192,304 (5,912,700) 

44,299,440 23,634,202 37,551,215 2,967,035 

12 PROFI 

OFIT BEFORE TAX 

Profit before tax is stated after charging all expenses including the following 

Auditors’ remuneration 

Statutory Audit 500,0 

0,000 199,41 

99,410 480,000 199,555 

Audit related services 280,000 111,669 

1,669 300,000 124,722 

Depreciation of property, 

plant and equipment 43,961,028 17,757 

,757,627 

,627 38,624,063 15,212,460 

Amortisation of lease hold land 1,222,851 493,959 1,222,842 481,628 

Provision for bad and 

doubtful debts - - 6,656,159 2,767,226 

Staff costs (Note 12.1) 99,699,188 

39,761,938 

89,255,290 37,106,917 

12.1 

Staf 

aff f costs 

Salaries and related costs 87,1 

,167 

67,1 

,142 

34,763,91 

63,919 78,399,431 32,593,711 

Defined contribution 

plan cost- EPF and ETF 8,880,359 3,541,657 8,314,444 3,456,640 

Defined benefit plan cost - 

Retiring Gratuity 3,651,687 1,456,362 2,541,416 1,056,566 

99,699,188 

88 39,761,938 

89,255,290 37,106,917 

Number of employees ar year end 73 76 

13. 

3. INCOME TAX AX EXPENSES 

Current 

rent Tax ax Expenses 

Income Tax on Current year profits 235,403,818 95,089,069 137,333,421 54,090,093 

(Under)/Over provision in respect 

of previous year 5,956,231 2,405,961 - - 

241,360,049 97,495,031 

137,333,421 54,090,093 

Defer 

erred red tax expense 

Origination and reversal of 

temporary differences (14,423,029) (5,826,041) 16,278,525 6,411,454 

Effect of change in 

income tax rate (21,569,910) 

(8,712,954) 

- - 

Tot 

otal 

Tax Expenses 205,367,1 

,110 82,956,035 153,611,946 60,501,547 

123 ⊳


SLR 


INR SLR INR 

A Reconciliation of accounting profit to income tax expense. 

Accounting profit before tax 482,000,1 

0,137 

198,539,245 

388,649,711 142,363,374 

Non business income (Net) (38,377,087) 

,087) (15,305,51 

5,305,514) 

(21,358,911) (8,924,648) 

Disallowable expenses 185,81 

85,816,945 

74,1 

4,107 

07,342 

76,273,952 31,754,980 

Allowable expenses (8,191,921) 

(3,267,094) 

,094) (6,708,064) (2,788,805) 

621,248,074 254,073,978 436,856,688 162,404,900 

Non business income - 

Interest Income 38,153,913 15,216,508 21,358,911 8,879,735 

Notional tax credit 3,240,710 1,292,457 

Tax loss brought forward from 

previous years utilised - (71,633,133) (29,780,696) 

662,642,697 267,668,035 

386,582,466 152,259,234 

Tax liability @ 35% 231,924,944 93,683,812 135,303,863 53,290,732 

Social Responsibility 

Levy @ 1.5% 3,478,874 1,405,257 2,029,558 799,361 

235,403,818 95,089,069 137,333,421 54,090,093 

14 EARNINGS PER SHARE 

The calculation of basic earnings per ordinary share is based on the profit attributable to ordinary shareholders 

and the weighted average number of ordinary shares in issue during the year. 

Net profit attributable to ordinary 

shareholders (Rs.) 276,633,028 

115,583,21 

5,583,210 235,037,765 81,861,827 

Number of ordinary 

shares in issue 50,000,0 

0,000 50,000,0 

0,000 50,000,000 50,000,000 

Basic earnings per 

ordinary share (Rs.) 5.53 2.31 4.70 1.64 

There were no potentially dilutive ordinary shares issued at any time during the year 

15. 

OPERATING LEASE PREPAID 

Cost 38,946,767 

67 15,732,1 

5,732,166 

38,946,767 15,339,560 

As at the beinning of the year 13,849,899 

5,594,531 12,627,057 4,973,288 

Amortisation for the year 1,222,851 493,959 1,222,842 481,628 

Balance at the end of the year 15,072,750 6,088,490 13,849,899 5,454,916 

Carrying amount 23,874,0 

4,017 9,643,676 25,096,868 9,884,644 

Cost of the prepaid operating lease represents the advance payments made on operating leases for the 

“right to use” the following property. 

Leasehold property located at 81/11/1, New Nuge Road, Peliyagoda has been sub leased for a period of 30 

years from East West Properties Limited who have taken on lease the said premises for a period of 99 

years from the Urban Development Authority. 

The sub-lease rentals and related expenses are amortized on a yearly basis as per the schedule of the 

agreement. Leasehold land is amortized over the lease period of 30 years. 

124


16 PROPER 

OPERTY 

TY, , PLANT AND EQUIPMENT 

PROPER 

OPERTY 

TY, , PLANT & EQUIPMENT 

Plant & 

Office 

fice 

Buildings 

machiner 

hinery 

equipment 

SLR 

SLR 

SLR 

Lab 

Computer 

equipment 

equipment 

SLR 

SLR 

Electrical 

HT T power 

er 

installation 

line 

SLR 

SLR 

Furnit 

urnitures 

ures 

Motor 

& fittings 

tings 

vehicles 

SLR. 

SLR 

Motor 

Capital 

al 

Tot 

otal 

al 

cycles 

cles 

work in 

SLR 

SLR 

progress 

SLR 

Cost 

Balance as at 01-04-20 

-04-2010 53,087,233 489,853,145 4,295,469 4,334,698 11,470,028 71,932,840 1,167,013 1,492,355 4,601,668 2,947,120 - 645,181,568 

Additions - - 398,767 - 138,965 - - - 33,380,719 1,480,999 1,005,156 36,404,606 

Disposals (Note 16.1) - (7,830,619) (133,674) - (64,135) - - - - (527,338) - (8,555,767) 


-03-2011 53,087,233 

,233 482,022,526 4,560,561 4,334,698 11,544,858 

1,544,858 71,932,840 1,167 

67,0 

,013 1,492,355 37,982,387 

3,900,781 

0,781 1,005,1 

05,156 

56 673,030,407 

Depreciation 


-04-2010 14,677,316 188,916,301 3,347,470 2,537,938 9,674,715 27,707,581 498,634 1,172,846 3,350,816 2,019,722 - 253,903,339 

Charge for the year 2,319,444 33,375,124 366,165 382,557 785,480 4,015,153 66,838 85,775 2,194,904 369,588 - 43,961,028 

Disposals (Note 16.1) - (3,502,639) (133,674) - (30,777) - - - - (527,337) - (4,194,427) 


-03-2011 16,996,7 

6,996,760 

60 218,788,786 

3,579,961 2,920,495 10,429,41 

0,429,418 31,722,734 565,472 1,258,621 5,545,720 1,861,973 - 293,669,940 

Carrying amount 

As at 31-03-20 

-03-2011 36,090,473 263,233,740 

980,600 1,414,203 1,115,440 

40,210,1 

0,106 

06 601,541 

233,734 32,436,667 2,038,808 1,005,1 

05,156 

56 379,360,468 

As at 31-03-2010 38,409,917 300,936,844 947,999 1,796,760 1,795,313 44,225,259 668,379 319,509 1,250,852 927,398 - 391,278,230 

Note 16.1 : Disposals of Plant and Machineries include Rs.4.3Mn worth of discarded assets that were fully written off to the income statement. 

PROPER 

OPERTY 

TY, , PLANT & EQUIPMENT 

Plant & 

Office 

fice 

Lab 

Computer 

Electrical 

HT power 

Furnit 

urniture ure & 

Motor 

Motor 

Capital 

al 

Tot 

otal 

Buildings 

machiner 

hinery 

equipments 

equipments equipments 

installation 

line 

fittings 

tings 

vehicles 

Cycles 

work in 

INR 

INR 

INR 

INR 

INR 

INR 

INR 

INR 

INR 

INR 

INR 

Progress 

INR 

Cost 

Balance as at 01-04-2010 21,444,069 197,871,386 1,735,113 1,750,959 4,633,206 29,056,567 471,403 602,822 1,858,799 1,190,460 - 260,614,783 

Additions - - 161,078 - 56,134 - - - 13,483,815 598,235 406,023 14,705,284 

Disposals - (3,163,102) (53,996) - (25,907) - - - - (213,013) - (3,456,018) 

Balance as at 31-03-2011 21,444,069 194,708,284 

1,842,194 

1,750,959 4,663,432 29,056,567 471,403 602,822 15,342,614 1,575,682 406,023 271,864,049 

Depreciation 

Balance as at 01-04-2010 5,928,758 76,310,892 1,352,178 1,025,175 3,908,006 11,192,206 201,418 473,760 1,353,529 815,847 - 102,561,770 

Charge for the year 936,917 13,481,555 147,909 154,530 317,287 1,621,882 26,999 34,648 886,610 149,292- 17,757,628 

Disposals - (1,414,857) (53,996) - (12,432) - - - - (213,013) - (1,694,298) 

Balance as at 31-03-2011 6,865,675 88,377,590 

,590 1,446,090 1,179,705 

4,212,861 12,814,088 228,417 508,408 2,240,139 752,127 - 118,625,1 

8,625,100 

Written down value 

As at 31-03-2011 14,578,394 

4,578,394106,330,694 

396,104 

571,253 450,571 16,242,479 

242,987 94,415 13,1 

3,102,47 

02,474 823,555 406,023 153,238,950 

As at 31-03-2010 15,128,117 118,526,880 373,378 707,671 707,101 17,418,545 263,248 125,842 492,660 365,265 154,108,706 

Note 16.1 : Disposals of Plant and Machineries include Rs.1.7 Mn worth of discarded assets that were fully written off to the income statement. 

17 INVENTORIES 


SLR 

INR SLR INR 

Naked cement 58,556,170 

70 23,653,192 

92 18,292,496 7,204,676 

Bags 1,870,775 755,681 2,312,147 910,661 

Stores and spares 18,937 

8,937,079 

,079 7,649,448 

16,761,857 6,601,819 

Goods-in-transit 113,222,57 

3,222,574 45,735,151 126,642,075 49,879,203 

192,586,598 

77,793,472 

164,008,575 64,596,360 

125 ⊳


18 TRADE RECEIVABLES 

Trade receivables 122,1 

22,138,836 

49,336,788 172,085,882 67,777,685 

Provision for bad and 

doubtful debts (10,972,872) 

(4,432,384) (10,972,872) (4,321,771) 

111,1 

1,165,964 

44,904,404 161,113,010 63,455,914 

19 VALUE 

ADDED TAX RECOVERABLE 

Value Added Tax recoverable 322,394,519 130,228,1 

30,228,112 293,481,295 115,590,440 

The Value Added Tax (VAT) recoverable represents the excess input credit refund due from the Department 

of Inland Revenue. This refund is fully substantiated by valid invoices/ import documents. This refund has 

mainly arisen due to limitation in allowing input tax setoff only up to 85% of output tax and mark up on CIF 

value on importation goods at 110% at the time of import. Further, due to the lower margins, the Company 

was unable to recover the excess input tax credit. 

The Company filed a refund application and made representations to the Government of Sri Lanka(GOSL). 

Subsequently the GOSL amended the Value Added Tax act via amendment No 09 0f 2011 as follows; 

The restriction on the deductibility of VAT input credits on any valid claim made on or after 01.01.2011 has 

now been relaxed to 100% of the output VAT in relation to any tax invoice or customs declaration. 

Any unabsorbed VAT inputs as at 31.12.2010 calculated under the respective provisions of the VAT Act will 

be deductible from any output VAT in every month of each taxable period, with a maximum of 10% of the 

total undeducted inputs outstanding as at 31.12.2010, or 5% oF the VAT payable, if any (after deducting the 

input tax). 

Consequently, the Directors conclude that the balance due as at the reporting date is recoverable. 

20 CASH 

AND CASH EQUIVALENTS 

For the purpose of cashflow statement, the year end cash and cash equivalents comprise the following; 

Cash in hand 2,097,90 

,901 847,427 

1,901,159 748,790 

Cash at bank 698,945,911 282,332,363 456,211,210 179,683,187 

701,043,81 

1,043,812 283,179,790 

458,112,369 180,431,977 


SLR 

INR SLR INR 

21. STATED TED CAPITAL 

AL 

Issued & fully paid number of shares 

50,000,000 ordinary shares 500,0 

0,000,0 

0,000 201,970,1 

1,970,109 

09 500,000,000 196,929,825 

Rights, Pref 

reference, erence, and 

Restrictions of Classes of Capital 

al 

The hodlers of ordinary shares are entitled to receive dividend from time to time and are entltled to one 

vote per share at a meeting of the company 

126


22. RETIREMENT BENEFIT OBLIGATIONS 

Pro 

rovision for retiring gratuit 

uity 

Present Value of Unfunded Gratuity 9,216,093 3,722,750 7,083,361 2,789,850 

Tot 

otal Present 

Value of the Obligation 9,216,093 3,722,750 7,083,361 2,789,850 

As at the beginning of the year 7,083,361 

2,789,850 4,541,945 1,985,927 

Acturial Loss 333,016 134,51 

34,519 163,331 64,329 

Current Service Cost 1,763,040 

712,163 1,196,607 471,295 

Interest Cost 1,555,631 628,382 1,181,478 465,337 

10,735,048 

4,264,913 7,083,361 2,986,888 

Benefits paid during the year (1,518,955) 

(613,567) 

- - 

Balance at the end of the year 9,216,093 

3,722,750 7,083,361 2,789,850 

Expenses recognised in profit or loss; 

Cost of sales 1,460,675 590,025 1,016,566 400,384 

Administration expenses 620,787 250,761 

432,041 170,163 

Distribution expenses 1,570,225 634,277 1,092,809 430,413 

3,651,687 1,475,063 2,541,416 1,000,961 

As at 31 st March, 2011, the gratuity liability was acturially valued under the Projected Unit Credit Method by 

a professionally qualified actuary firm Ms. Piyal Goonetilleke and Associates. 

The required accounting provision of the Company as at 31 st March 2011, has been determined based on 

the recommendation on this report. 

The key assumptions used by the actuar 

uary include the follo 

ollowing; 

(i) Rate of discount 11% 

(ii) Salary Increment Rate 10% 

(iii) Retirement Age 

55 years 

23. DEFERRED TAX 

ASSE 

SSET/(LIABILI 

T/(LIABILITY) 

TY) 

As at the beginning of the year 122,272,582 

49,390,813 105,994,057 41,746,782 

Origination and reversal of 

temproray difference (14,423,029) (5,826,041) 16,278,525 6,411,454 

Effect of change in 

income tax rate (21,569,910) 

(8,712,954) 

Balance at the end of the year 86,279,643 43,564,772 122,272,582 48,158,236 

Deferred income tax and liabilities are offset when there is a legally enforceable right to offset assets 

against tax liabilities and when the deferred income taxes relate to the same fiscal authority. 

Deferred tax assets 2,580,506 1,042,370 2,479,176 976,447 

Deferred tax liabilities (88,860,149) (35,894,188) 

88) (124,751,758) (49,134,684) 

(86,279,643) (34,851,818) 

8) (122,272,582) (48,158,236) 


Assets 

Liabilities Assets Liabilities 

SLR 

INR 

SLR 

INR SLR INR SLR INR 

Recognised defer 

erred red tax assets and liabilities 

Property, plant and equipment 88,860,149 35,894,188 

88 124,751,758 49,134,684 

Defined benefit obligation 2,580,506 1,042,370 2,479,176 976,447 

Tax loss carried forward 

2,580,506 1,042,370 88,860,149 35,894,188 

88 2,479,176 976,447 124,751,758 49,134,684 

Net deferred tax - 86,279,643 34,851,818 - 122,272,582 48,158,236 

127 ⊳



SLR 

INR SLR INR 

24 TRADE PAYABLES 

ABLES 

Import Trade Payables 

ables 

Related Party Payable - 

Ultratech Cement Limited 201,570,7 

1,570,749 

81,422,532 310,162,365 122,160,440 

Import Payable 10,037 

0,037,21 

,213 4,054,434 2,855,183 1,124,541 

Other trade payables 48,988,261 19,788,329 

36,760,933 14,478,648 

260,596,223 105,265,295 

349,778,481 137,763,630 

25 OTHER PAYABLES 

ABLES 

Retention payables 14,781,1 

4,781,149 

49 5,970,700 3,742,549 1,474,039 

Rebate payable to customers 32,385,990 13,082,0 

3,082,004 

04 7,571,617 2,982,154 

Withholding tax payable 920,237 371,721 357,480 140,797 

Stamp duty payable 115,924 

46,826 132,249 52,088 

Nation Building Tax payable 2,590,820 1,046,536 6,351,370 2,501,548 

Payable to Sri Lanka Customs 11,843,808 

1,843,808 4,784,190 

Others 5,399,977 2,181,268 

5,052,958 1,990,156 

68,037,903 

,903 27,483,245 

23,208,223 9,140,782 

26 RELATED PAR 

ARTY DISCLOSURES 

(a) 

Identity of Related Parties 

The compnay has a related party relationship with its Parent Company, Affiliate companies and with its 

Key Management Personnel. 

(b) 

Transactions with key management personnel 

Key Management Personnel comprise of directors of the company. 

(i) 

Loans to directors 

No loans have been given to directors fo the company. 

(ii) 

Key management personnel compensation 

The details of compensation to Key Management Personnel are as follows, 

Salaries 11,7 

1,749,252 

4,745,995 

45,995 11,213,669 4,661,961 

Housing rent 840,000 339,316 840,000 349,221 

Medical expenses & school 

fees reimbersement 404,889 163,551 

295,280 122,759 

Traveling 243,010 98,165 

65 302,475 125,751 

Other non cash benefits 574,37 

4,376 232,014 476,533 198,113 

(iii) 

Company Name 

Relationship 

Nature of Transaction 

13,81 

3,811,527 

1,527 5,579,040 13,127,957 5,457,805 

Balance as at 

Value of Transactions 

Balance as at 

31.03.20 

.03.2010 During the year 

31.03.20 


SLR INR SLR INR SLR INR 

UltraTech Cement Limited Parent Company - Import of cement 310,162,365 122,160,440 3,788,438,251 1,522,069,800 - 

- Settlements - (3,897,029,867) (1,562,807,708) 201,570,749 81,422,532 

310,162,365 122,160,440 (108,591,616) (40,737,908) 201,570,749 81,422,532 

- Dividend 120,000,000 48,472,826 108,000,000 43,625,543 

Ceylinco Insurance Company PLC Affiliate - Insurance services - 3,376,683 1,346,685.58 - 

- Settlements (3,376,683) (1,346,686) 

- - - - - - 

- Dividend - - 27,000,000 10,906,386 - - 

Ceylinco International Trading Co Affiliate - Dividend - - 3,000,000 1,211,821 - - 

128


27 CAPITAL AL EXPENDITURE COMMITMENTS 

There is no material capital expenditure committed by the company as at 31 st March 2011 other than 

disclosed in note number 16 to the financial statements. 

28 CONTINGENT LIABILITIES 

The Sri Lankan Customs commenced an inquiry on the allegation that dividends declared by the Company 

and remitted to the Parent Company represents part of settlement in respect of the cement imported by 

the Company and the additional duty is payable by the Company. The Sri Lanka Customs have not provided 

a basis for any value to be attributed as alleged additional duty payable. The inquiry was last held on 

01 st September 2010. 

The Company has also filed a written application in the Court of Appeal in seeking inter alia to quash the 

aforesaid decision by Sri Lanka Customs to hold the said inquiry and the said application is at the stage of 

filing counter objections by the respondents. The next hearing date is scheduled for 30 th May 2011. 

The Company contends there are no basis to include dividends paid in the value of goods and consequently 

intend to resist the aforesaid contention of the Customs at any inquiry. 

Bank Guarantee amounted to USD 50,000 has been placed in favor of Sri Lanka Ports Authority to bid for a 

tender. 

There were no other contingent liabilities as at the balance sheet date which require adjustments or 

disclosure in the accounts, except for the matters stated above. 

29 EVENTS OCCURRING AFTER THE BALANCE SHEET DATE 

No circumstances have arisen since the balance sheet date which would require adjustments to or disclosure 

in the financial statements. 

129 ⊳

ULTRATECH CEMENT 

MIDDLE EAST INVESTMENTS LIMITED 

DIRECTOR 

ORS’ REPORT TO THE SHAREHOLDER 

OLDERS 


Your Directors present the Second Annual Report 

together with the Audited Accounts of your Company 

for the year ended 31 st March, 2011. 

CORPORATE DEVELOPMENT 

During the year under review, your Company completed 

the acquisition of ETA Star Cement together with its 

operations in the UAE, Bahrain and Bangladesh and 

acquired management control. 


AED in Million 

Particulars 


0-2011 

Gross Turnover 300.89 

Profit / (Loss) Bef 

efore Depreciation 

and Tax 

(5.54) 

Depreciation 36.65 

Profit / (Loss) Bef 

efore 

Tax 

(42.19) 

Tax Expenses 

NIL 

Profit/(L 

rofit/(Loss) oss) after tax 

(42.19) 

Add: Balance brought forward 

from Previous Year (0.03) 

Minority Interest (7.42) 

Balance transfer 

erred red to Balance Sheet (34.80) 

AUDI 

UDITOR 

ORS 

M/s Mahendra Asher & Co., Chartered Accountants, 

Dubai were appointed Statutory Auditors of your 

Company from the conclusion of the previous Annual 

General Meeting until the conclusion of the ensuing 

Annual General Meeting. It is proposed to appoint M/ 

s. KPMG, Chartered Accountants, Dubai as Statutory 

Auditors of your Company in place of M/s. Mahendra 

Asher & Co., Chartered Accountants. 

The Board recommends the appointment of M/s. 

KPMG, Chartered Accountants, Dubai as auditors of 

your Company to hold office from the conclusion of 

the ensuring Annual General Meeting until the 

conclusion of the next Annual General Meeting. 

AUDI 

UDITOR 

OR’S REPORT 


reservation in the Auditor’s Report on the Annual 


The Notes to the Accounts referred to in the Auditor’s 

Report are self explanatory and therefore do no call 

any further comments from the Directors. 

APPRECIATION 

Your Directors take this opportunity to express their 

appreciation to all your Company’s stakeholders for all 

the support and co-operations extended by them and 

look forward to their continued support in future. 


CORPORATE GOVERNANCE 

Your Directors reaffirm their continued commitment to 

good corporate governance practices. During the year 

under review, your Company complied with relevant 

laws of UAE. 

Place: Dubai 

Date : 21 st April, 2011 

O. P. Puranmalka 

K. C. Birla 

} 

Director 

130



AUDI 

UDITOR 

ORS’ REPORT 

To the Members of UltraTec 

ech Cement Middle East 

Investments Limited 

1. We have audited the attached Consolidated 

Balance Sheet of UltraTec 

ech Cement Middle East 

Investments Limited (“the Company”) y”) and its 

subsidiaries (hereinafter the Company and its 

subsidiaries are collectively referred to as “the 

Group”) as at March 31, 2011, the Consolidated 

Profit and Loss Account and the Consolidated Cash 

Flow Statement of the Group for the year ended 

on that date, 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 disclosures in the financial 


accounting principles used and 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 

subsidiaries whose financial statements reflect 

total assets of Rs. 1318.28 crores as at March 31, 

2011 and total revenues of Rs. 399.25 crores for 

the year ended on that date as considered in these 

consolidated financial statements. These financial 

statements have been audited by other auditors 

whose reports have been furnished to us and our 

opinion, in so far as it relates to the amounts 

included in respect of these subsidiaries, is based 

solely on the report of the other auditors. 

4. Based on our audit of the Company and 

consideration of the separate audit reports on 

individual financial statements of the subsidiaries, 

and to the best of our information and 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 followed by Ultratech Cement 

Limited (Holding Company): 

(i) 

(ii) 

in the case of the Consolidated Balance Sheet, 

of the state of affairs of the Group as at 

March 31, 2011 

in the case of the Consolidated Profit & Loss 

Account, of the loss of the Group for the year 

ended on that date and 

(iii) in the case of the Consolidated Cash Flow 

Statement, of the cash flows of the Group 

the year ended on that date. 

As stated in schedule 20 (Note A(1)), these financial 

statements are translated into Indian Rupees from 

the financial statements prepared in Dirham (AED) 

which is the functional currency of the Company. 

For MAHENDRA ASHER & CO. 

R. N. Shetty 

(UAE Auditor’s Registration No. 77) 

Dubai 

Dated : 21 st April, 2011 

131 ⊳



Consolidated Balance Sheet as at March 31, 2011 

Amount in AED Crores 

Amount in INR Crores 

Schedules 

As at As at As at 

As at 

Mar 31, 2011 Mar 31, 2010 Mar 31, 2011 Mar 31, 2010 

SOUR 



Share Capital 1 15.48 

0.60 187 

87.94 

7.34 

Reserves and Surplus 2 0.10 — 3.26 — 

15.58 

0.60 191 

91.20 

7.34 

Loan Funds 

Secured Loans 3 6.54 — 79.43 — 

Unsecured Loans 4 108.20 

— 1,313.82 

3.82 — 

114.7 

4.74 — 1,393.25 — 

Minority Interest 4.68 — 56.88 — 

TOTAL 

135.0 

35.01 0.60 1,641.34 

7.34 


Fixed 

Assets 

Gross Block 5 85.13 — 1,033.64 — 

Less: 

Depreciation 18.07 

— 219.40 

— 

Net Block 67.06 

— 814.24 

— 

Capital Work-in-Progress 4.91 — 59.56 — 

71.96 

— 873.80 — 

Goodwill 37.61 

— 456.70 — 

(Stated at cost) 

Defer 

erred red tax assets (net) 0.29 — 3.54 — 

Current 


dvances 

Income Accrued on Investment 

Inventories 6 10.69 

— 129.7 

29.76 — 

Sundry Debtors 7 18.66 

— 226.58 — 

Cash and Bank Balances 8 2.27 0.60 27.60 

7.31 

Loans and Advances 9 4.71 — 57.20 

— 

36.33 0.60 441.1 

.14 7.31 

Less: 


rovisions 

Current Liabilities 10 13.90 

— 168.83 

0.01 

Provisions 11 0.53 — 6.41 — 

14.43 

— 175.24 

0.01 

Net Current 

rent Assets 

21.90 

.90 0.60 265.89 7.30 

Profit & Loss 

Account Debit Balance 

3.24 — 41.40 

.40 0.04 

TOTAL 

AL 135.0 

35.01 0.60 1,641.34 

.34 7.34 


For or MAHENDRA ASHER & CO. 


R. N. SHETTY 

Partner 


O. . P. P 

. Puranmalka 

Director 

K. C. Birla 

Director 

Dubai, April 21, 2011 

132



Consolidated Profit and Loss 

Account for the period ended March 31, 2011 



Schedules 


As at 


INCOME 

Gross Sales 30.01 — 372.28 — 

Less: Excise Duty / VAT 0.00 — — — 

Net Sales 30.01 — 372.28 — 

Operating Income 12 0.12 — 1.55 

— 

Other Income 13 0.16 — 1.99 

— 


— 23.49 — 

32.29 — 399.30 — 

EXPENDITURE 

Raw Materials Consumed 15 12.99 

— 161 

61.1 

.12 — 

Manufacturing Expenses 16 14.25 

— 176.70 

— 

Payments to and Provisions for Employees 17 2.29 — 28.36 — 

Selling, Distribution, 

Administration and Other Expenses 18 1.54 

— 19.1 

9.14 0.04 

Interest and Finance Charges 19 1.78 

— 22.10 — 

Depreciation and Obsolescence 3.66 — 45.42 — 

36.51 — 452.83 0.04 

Profit/(L 

rofit/(Loss) oss) Bef 

efore 

Tax Expenses (4.22) (—) (53.53) (0.04) 


Provision for Current Tax — — — — 

Deferred Tax (0.30) — (3.71) — 

Profit/(L 

rofit/(Loss) 

oss) After 

Tax 

(3.92) (—) (49.83) (0.04) 

Minority Interest (0.68) — (8.47) — 

Profit/(L 

rofit/(Loss) oss) after Minority Interest (3.24) (—) (41.36) 

(0.04) 

Balance brought forward from Previous Year (0.00) 

0) — (0.04) — 

Profit/(L 

rofit/(Loss) 

oss) Available for 

Appropriation (3.24) (—) (41.40) 

(0.04) 


Balance carried to Balance Sheet (3.24) (—) (41.40) 

(0.04) 

(3.24) (—) (41.40) 

(0.04) 

Basic Earnings Per Equity Share (3.74) 

(0.05) (47.73) 

— 

Diluted Earnings Per er Equity y Share (3.74) 

(0.05) (47.73) 

— 

Face Value Per Equity Share 10.0 

0.00 10.00 121 

21.43 

.43 10.00 

Weighted Average Number Of Equity Shares (in Nos.) 8,666,018 600,000 8,666,018 600,000 

Weighted Average Number Of Equity Shares incl 

Diluted Shares (in Nos.) 8,666,018 600,000 8,666,018 600,000 

Accounting Policies and 

Notes on Accounts 

20 




R. N. SHETTY 

Partner 


O. . P. P 

. Puranmalka 

Director 

K. C. Birla 

Director 


133 ⊳



CONSOLIDATED CASH FLOW STATEMENT TEMENT FOR THE YEAR ENDED MARCH 31, 2011 

Amount in AED crores 

Amount in INR crores 


A 


Profit before tax 

(4.22) — (53.53) (0.04) 


Depreciation and Obsolescence 3.66 — 45.42 — 

Provision for Retirement benefits 0.08 — 0.91 — 

Interest and Dividend Income (—) — (0.05) — 

Interest and Finance Charges 1.78 

— 22.10 — 

Operating Profit Bef 

efore 

Working 

Capital al Changes 1.29 

— 14.86 

(0.04) 


(Increase)/decrease in Inventories 1.61 

— 19.68 

— 

(Increase)/decrease in Sundry Debtors (3.00) 

0) — (35.95) — 

(Increase)/decrease in Loans and Advances (0.54) — (6.13) 

— 

Increase/(decrease) in Trade Payables 

and other Liabilities (7.39) 

— (92.83) 0.01 

Net Cash Generated From Operations (A) (8.02) — (100.38) 

0.38) (0.03) 

B 


Activities: 

Purchase of Fixed Assets (3.19) 

— (32.32) — 

Investment in subsidiaries (59.08) — (717.40) 

— 

Interest and Dividend Received 0.00 — 0.05 — 


Activities (B) (62.27) — (749.67) 

— 

C 



0.60 180.60 

7.34 

Proceeds from Long Term Borrowings 58.24 — 702.00 — 


— (22.10) 

— 

Net Cash Generated / (Used) from 

Financing Activities (C) 71.34 

0.60 860.50 7.34 

Net Increase/(Decrease) in cash and 

cash equivalents (A + B + C) 1.05 

0.60 10.45 

7.31 

Cash and Cash Equivalents at 

the Beginning of the Year 

0.60 — 7.31 

— 

Cash & Cash equivalent transfer 

erred red on 

account of requisition of ETA STAR 

0.51 — 6.28 — 

Effect of exchange rate on consolidation 

of Foreign Subsidiary 0.11 — 3.56 — 

Cash and Cash Equivalents at the End of the Year 

2.27 0.60 27.60 

.60 7.31 

Notes: 

1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard - 3 

notified under the Companies (Accounting Standard) Rules, 2006. 







O. . P. P 

. Puranmalka 

Director 

R. N. SHETTY 

Partner 

K. C. Birla 

Director 


134



SCHEDULE 

Amount in AED 

Amount in INR 

As s at As at As s at 

As at 


SCHEDULE 1 

SHARE CAPITAL 

AL 

Authorised 

15,477,756 Equity shares of AED 10/- each 15.48 

1.00 187 

87.94 

12.23 

Issued, Subscribed and Paid-up 

15,477,756 Equity shares of AED 10/- each 

fully paid-up. 15.48 

0.60 187 

87.94 

7.34 

15.48 

0.60 187 

87.94 

7.34 

SCHEDULE 2 

RESERVES 

AND SURPLUS 

Currency Translation Reserve: 

Opening Balance — — — — 

Addition during the year 0.10 — 0.40 — 

Deduction/Adjustments during the year — — 2.86 — 

Balance on at March 31, 2011 0.10 — 3.26 — 

SCHEDULE 3 

SECURED LOANS 


Cash Credits / Working Capital Borrowings from Banks 

(Secured by Hypothecation of Stocks and 

Book Debts of the Company) 5.80 — 70.47 — 

Term Loans 0.74 — 8.97 — 

6.54 — 79.43 — 

SCHEDULE 4 


Short Term 


.73 — 20.96 — 

Long 

Term 


— 1,292.87 — 

108.20 

— 1,313.82 

3.82 — 

135 ⊳



SCHEDULE 5: FIXED ASSE 

SSETS 


Particulars 

Gross Block 

Depreciation 

Net Block 

As at Acquired Additions Deductions/ As at As at Additions For the Deductions/ As at 

As at 

April 01, from ETA Adjustments Mar 31, April 01, year Adjustments Mar 31, Mar 31, 

2010 2011 2010 2011 2011 

(A) 

(B) 

Tangible 

Assets 

Freehold Land 0.00 0.51 0.00 (0.01) 0.50 0.00 0.00 0.00 0.00 0.00 0.50 

Buildings 0.00 3.49 0.01 (0.04) 3.46 0.00 1.08 0.14 (0.00) 1.22 2.24 

Plant and Machinery 0.00 79.12 0.06 (0.39) 78.80 0.00 11.72 3.36 (0.05) 15.03 63.77 

Furniture and Fixtures 0.00 0.91 0.28 (0.01) 1.18 0.00 0.77 0.08 (0.00) 0.84 0.34 

Vehicles 0.00 0.32 0.05 (0.00) 0.36 0.00 0.24 0.03 (0.00) 0.27 0.09 

Tot 

otal 

Tangible 

Assets 

0.00 84.35 0.40 (0.45) 84.30 0.00 13.81 

3.61 (0.05) 17.36 

66.94 

Intangible 

Assets 

Intangible Asset 0.00 0.82 0.00 0.00 0.82 0.00 0.65 0.06 0.00 0.71 0.12 

Tot 

otal 

Assets (A+B) 0.00 85.18 0.40 (0.45) 85.13 0.00 14.46 

3.66 (0.05) 18.07 

67.06 

Previous year 

Add: Capital 

al 

Work-in-P 


rogress 1.66 

3.24 0.00 4.91 0.00 4.91 

71.96 

Notes : 

Depreciation for the year 3.66 

Add: Obsolescence 0.00 

Less: Depreciation transferred 

to Pre-operative Expenses 0.00 


SCHEDULE 5: FIXED ASSE 

SSETS 


Particulars 

Gross Block 

Depreciation 

Net Block 

As at Acquired Additions Deductions/ As at As at Additions For the Deductions/ As at 

As at 

April 01, from ETA Adjustments Mar 31, April 01, year Adjustments Mar 31, Mar 31, 

2010 2011 2010 2011 2011 

(A) 

(B) 

Tangible 

Assets 

Freehold Land 0.00 6.37 0.00 (0.30) 6.07 0.00 0.00 0.00 0.00 0.00 6.07 

Buildings 0.00 43.29 0.13 (1.43) 41.99 0.00 13.37 1.78 (0.35) 14.80 27.1 

.19 

Plant and Machinery 0.00 981.41 0.78 (25.37) 956.82 0.00 145.38 41.66 (4.51) 182.53 774.29 

Furniture and Fixtures 0.00 11.25 3.47 (0.39) 14.33 0.00 9.52 0.95 (0.25) 10.22 4.11 

Vehicles 0.00 3.92 0.64 (0.15) 4.41 0.00 3.01 0.34 (0.09) 3.26 1.1 

.15 

Tot 

otal 

al Tangible 

Assets 

0.00 1,046.24 5.02 (27.64) 

1,023.62 0.00 171 

71.28 

44.73 (5.20) 210.81 

812.81 

Intangible 

Assets 

Intangible Asset 0.00 10.23 0.00 0.21 10.02 0.00 8.08 0.69 (0.18) 8.59 1.43 

Tot 

otal 

al Assets (A+B) 0.00 1,056.47 5.02 (27.85) 

1,033.64 0.00 179.36 

45.42 (5.38) 219.40 

814.24 

Previous year 

Add: Capital 

al 

Work-in-P 


rogress 20.65 38.91 0.00 59.56 0.00 59.56 

873.80 

Notes : 

Depreciation for the year 45.42 

Add: Obsolescence 0.00 

Less: Depreciation transferred 

to Pre-operative Expenses 0.00 


136






As at 


SCHEDULE 6 

INVENTORIES 

Stores and Spare parts, Packing Material, 

Fuel and Scrap 3.05 — 37.0 

.00 — 

Raw Materials 4.77 — 57.93 

— 

Finished Goods 2.79 — 33.93 — 

Work-in-progress 0.07 — 0.91 — 

10.69 

— 129.7 

29.76 — 

SCHEDULE 7 

SUNDRY DEBTOR 

ORS (Considered Good) 


Secured 0.92 — 11.1 

.18 — 

Unsecured 1.32 

— 16.06 

— 

Doubtful and Unsecured 0.61 — 7.42 

— 

2.85 — 34.65 — 

Less: Provision for Doubtful Debts 0.61 — 7.42 

— 

2.24 — 27.24 

— 

Others: 

Secured 11.22 

— 136.1 

36.19 — 

Unsecured 5.20 — 63.16 — 

16.42 

— 199.35 

— 

18.66 

— 226.59 — 

SCHEDULE 8 

CASH 


Cash Balance on Hand 0.00 — 0.05 — 

Bank Balance with Scheduled Banks: 

In Current Accounts 0.97 0.01 11.81 

0.09 

Interest accrued but not due 0.00 — — — 

In Fixed Deposit Account 1.30 

0.59 15.7 

5.74 7.21 

2.27 0.60 27.60 

7.31 

SCHEDULE 9 

LOANS 

AND ADVANCES 

ANCES 

Unsecured 


Advances recoverable in cash or in kind or for 

value to be received 4.46 — 54.17 — 

Advance Tax (Net of Provision) 0.25 — 3.02 — 

Advances recoverable in cash or in kind 

- considered doubtful 0.08 — 0.99 — 

4.79 — 58.18 — 

Less: Provision for doubtful Loans and Advances 0.08 — 0.99 — 

4.71 — 57.20 

— 

137 ⊳






As at 


SCHEDULE 10 


Sundry Creditors 

Parent Company and Fellow Subsidiaries 0.03 — 0.40 — 

Others 10.29 

— 124.90 

— 

10.32 

— 125.30 

— 

Security and Other Deposits 0.59 — 7.20 

— 

Advances from Customers 0.04 — 0.46 — 

Other Liabilities 2.68 — 32.61 0.01 

Interest accrued but not due on loans 0.27 — 3.27 — 

13.90 

— 168.83 

0.01 


PROVISIONS 

For Retirement Benefits 0.52 — 6.30 — 

For Tax (Net of Advance Tax) 0.01 — 0.11 — 

0.53 — 6.41 — 

SCHEDULE 12 

OPERATING INCOME 

Transport income 0.03 — 0.34 — 

Miscellaneous Income / Receipts 0.10 — 1.20 

— 

0.12 — 1.55 

— 

SCHEDULE 13 

OTHER INCOME 

Interest income — — 0.05 — 

Miscellaneous Income / Receipts 0.16 — 1.94 

— 

0.16 — 1.99 

— 

SCHEDULE 14 

INCREASE / (DECREASE) IN STOCKS 

Closing Stock 


Finished Goods 2.79 — 33.93 — 

2.87 — 34.84 — 

Stock k transfer 

erred red on account of Acquisition 

of ETA A Star ar Cement. 


Finished Goods 0.84 — 10.86 

— 

0.88 — 11.35 

.35 — 

Increase / (Decrease) in Stocks 1.99 

.99 — 23.49 — 

SCHEDULE 15 

RAW W MATERIAL 

TERIALS S CONSUMED 

Stock transferred on account of 

Acquisition of ETA Star Cement. 3.96 — 50.96 — 

Purchase and Incidental Expenses 13.80 

— 168.1 

68.10 — 

17.7 

.76 — 219.05 

— 

Less: Closing Stock 4.77 — 57.93 

— 

12.99 

— 161 

61.1 

.12 — 

138






As at 


SCHEDULE 16 


Consumption of Stores, Spare Parts, Components 0.75 — 9.28 — 

Power and Fuel Consumed 12.36 

— 153.35 

— 

Hire Charges of Plant and Machinery and Others 0.65 — 8.01 — 

Repairs to Plant and Machinery 0.49 — 6.05 — 

14.25 

— 176.70 

— 

SCHEDULE 17 

PAYMENTS 


Salaries, Wages and Bonus 2.24 — 27.84 

— 

Welfare Expenses 0.04 — 0.52 — 

2.29 — 28.36 — 

SCHEDULE 18 


TRIBUTION, 


TRATION 

TION 

AND OTHER EXPENSES 

Commission to Distributors and Selling Agents 0.05 — 0.57 — 

Freight, Handling and Other Expenses 0.03 — 0.37 — 

Advertisement and Sales Promotions 0.08 — 0.94 — 

Insurance 0.08 — 1.03 

— 

Rent (including Lease Rent), repairs & maintenance 0.68 — 8.42 — 

Rates and Taxes 0.07 — 0.82 — 

Stationery, Printing and Communication Expenses 0.09 — 1.07 

— 

Travelling and Conveyance 0.05 — 0.57 — 

Legal and Professional Charges 0.04 — 0.46 0.03 

Provision for Doubtful Debts and Advances — — 0.05 — 

Power (other than related to Manufacturing Activity) — — 0.06 — 

Exchange Rate difference (Net) 0.02 — 0.26 — 

Miscellaneous Expenses 0.37 — 4.54 0.01 

1.54 

— 19.1 

9.14 0.04 

SCHEDULE 19 


(A) Interest 

On Debentures and Fixed Loans 1.38 

.38 — 17.1 

.14 — 

On Other Loans 0.21 — 2.62 — 

1.59 

.59 — 19.7 

9.76 — 

(B) Finance Charges 0.19 — 2.34 — 

1.78 

— 22.10 — 

139 ⊳



Schedule 20 

ACCO 

CCOUNTING POLICIES AND NOTES 

TO ACCO 

CCOUNTS 

A 


1. Basis of Accounting 

The group financial statements are prepared and presented under the historical cost convention on 

accrual basis of accounting in accordance with the UltraTech Cement Ltd. (India)’s group accounting 

policies. The accounting policies set out below have been applied consistently to the period presented 

in this group financial statements in dealing with items which are considered material in relation to the 

Company’s group financial statements. 

The group prepares its financial statements in Dirham (AED) which is the functional currency of the 

group. These financial statements are translated into Indian Rupees, the assets and liabilities are 

translated into presentation currency at the exchange rate prevailing on the balance sheet date and 

profit and loss account items are translated at the average rate for the year. Translation difference is 

recognised as a separate component of Reserves & Surplus. 

Closing Rate – 31/03/2011 – 1 AED = 12.1425 INR (31.03.2010 – 1 AED = 12.2250 INR) 

Average Rate – INR – (01/04/2010 – 31/03/2011) – 1 AED = 12.4034 INR (20.09.2009 – 31/03/2010 – 

12.5859) 

2. Use of estimates 

The preparation of financial statements in conformity with the GAAP requires estimates and assumptions 

to be made that affect the reported amounts of assets and liabilities on the date of the financial statements, 

the reported amounts of revenues and expenses during the reported period and the disclosures relating to 

contingent liabilities as of the date of the financial statements. Any revision to accounting estimates is 

recognized prospectively in the current and future periods. Difference between actual results and estimates 

are recognized in the period in which the results are known or materialize. 

3. Fixed 

Assets 

Fixed assets, whether tangible or intangible, are stated at cost less accumulated depreciation net of 

modvat /cenvat (wherever claimed). The cost of fixed assets includes taxes, duties, freight and other 

incidental expenses incurred in relation to their acquisition and bringing the assets for their intended use. 

Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost 

of fixed assets not ready for their intended use before such date are disclosed under capital work-inprogress. 


xpenditure during construction period 

Expenditure / Income, during construction period is included under Capital-Work-in-Progress and the same 

is allocated to the respective Fixed Assets on the completion of their construction. 


rency Transactions 

a. Transactions denominated in foreign currency are recorded at the exchange rate prevailing on the date 

of the transaction. Monetary assets and liabilities denominated in foreign currency at the balance sheet 

date are translated at the year-end rates. 

b. In respect of Forward exchange contracts, premium or discount, being the difference between the 

forward exchange rate and the exchange rate at the inception of contract is recognised as expense or 

income over the life of the Contract. 

c. Exchange difference including premium or discount on forward exchange contracts, relating to borrowed 

funds, liabilities and commitments in the foreign currency for acquisition of fixed assets, arising till the 

assets are ready for their intended use, are adjusted to cost of fixed assets. Any other exchange 

difference either on settlement or translation is recognised in the Profit and Loss account. 

d. Investments in equity capital of companies registered outside India are carried in the Balance Sheet at 

the rates at which transactions have been executed. 

6. Financial Derivativ 

atives 

Derivative financial instruments are used to hedge risk associated with foreign currency fluctuations and 

interest rates. The derivative contracts are closely linked with the underlying transactions and are intended 

140



to be held to maturity. These are accounted on the date of their settlement and realised gain/loss in respect 

of settled contracts is recognised in the profit and loss. 

7. Inventories 

Inventories are valued at the lower of weighted average cost and estimated net realisable value except 

waste / scrap which is valued at net realisable value. 

Cost of finished goods and process stock includes cost of conversion and other costs incurred in bringing 

the inventories to their present location and condition. 

Obsolete, defective and unserviceable inventories are duly provided for. 

8. Leases 

a) In respect of lease transactions entered into prior to April 1, 2001, lease rentals of assets acquired are 

charged to the Profit and Loss Account. 

b) Lease transactions entered into on or after April 1, 2001: 

i) Assets acquired under leases where the Company has substantially all the risks and rewards of 

ownership are classified as finance leases. Such assets are capitalised at the inception of the 

lease at the lower of the fair value or the present value of minimum lease payments and a liability 

is created for an equivalent amount. Each lease rental paid is allocated between the liability and 

the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for 

each period. 

ii) Assets acquired under leases where a significant portion of the risks and rewards of ownership 

are retained by the lessor are classified as operating leases. Lease rentals are charged to the Profit 

and Loss Account on accrual basis. 

iii) Assets leased out under operating leases are capitalised. Rental income is recognised on accrual 

basis over the lease term. 

9. Depreciation and Amortisation 

Depreciation is charged in the Accounts on Straight line basis for the following number of years: 

Tangible 

Assets: 

No. of Years 

Buildings (including improvements) 3-15 

Plant and equipment 2-20 

Furniture, fixtures and office equipment 1-5 

Motor vehicles 3-5 

Amortisation of intangible Assets 8.5 

Depreciation on additions is provided on a pro-rata basis from the month of installation or acquisition and in 

case of project from the date of commencement of commercial production, while depreciation on deductions 

/ disposals is provided on a pro-rata basis upto the month preceding the month of deductions / disposals. 

10. 

0. Impairment of Assets 

Financial assets: 

A financial asset is assessed at each reporting date to determine whether there is any objective evidence 

that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or 

more events have had a negative effect on the estimated future cash flows of that asset. 

An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference 

between its carrying amount, and the present value of the estimated future cash flows discounted at the 

original effective interest rate. 

Individually, significant financial assets are tested for impairment on an individual basis. The remaining 

financial assets are assessed collectively in groups that share similar credit risk characteristics. All impairment 

losses are recognised in profit or loss. 

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the 

impairment loss was recognized. 

141 ⊳



Non-financial assets: 

The carrying amounts of the Company’s non-financial assets, other than inventories, are reviewed at each 

reporting date to determine whether there is any indication of impairment. If any such indication exists then 

the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is estimated annually. 

The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of 

impairment based on the internal and external factors. 

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An 

impairment loss, if any, is charged to the 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 been decreased. 

11. Employee Benefits 

a. U.A.E. nationals – Pension and Social Security: 

In accordance with Federal Labour Law No.7 of 1999 for pension and social security, employers are 

required to contribute 12.5 % of the ‘contribution calculated on salary’ of those employees who are 

UAE nationals. These employees are also required to contribute 5% of the ‘contribution calculated on 

salary’ to the scheme. The Company’s contribution is recognized as an expense in the profit or loss as 

incurred. The employees and employers’ contribution, to the extent remaining unpaid at the reporting 

date, has been shown under other liabilities. 

b. Bahraini nationals – Pension and Social Security: 

Pension and other social benefits for Bahraini nationals are covered by the General Organisation for 

Social Insurance scheme to which employees and employers contribute monthly on a fixed percentage 

of salaries basis. The company’s contribution to this scheme which represents a defined contribution 

scheme is expensed as incurred. 

In accordance with the General Organisation for Social Insurance scheme, employers are required to 

contribute 12.5% of the ‘contribution calculated on salary’ of those employees who are Bahrain 

nationals. These employees are also required to contribute 7% of the ‘contribution calculated on salary’ 

to the scheme. The company’s contribution is recognized as an expense in the profit and loss as 

incurred. The employees and employers’ contribution, to the extent remaining unpaid at the reporting 

date, has been shown under other liabilities. 

c. At Bangladesh – Pension and Social Security: 

There is no defined contribution plan (Provident Fund) but the subsidiaries have started defined benefit 

plan (Gratuity Fund) for the employees of the subsidiaries in 2010 as per Workmen Compensation Act. 

Each employee, on completion of the probation period will be eligible for the scheme and the subsidiaries 

contribute one month’s basic pay on completion of 12 months or part thereof. 

d. Expatriates at U.A.E. – Gratuit 

uity: 

The provision for staff terminal benefits is calculated in accordance with the UAE Federal Labour Law 

and the relevant local laws applicable to overseas subsidiaries and is based on the liability that would 

arise if the employment of the entire Company’s staff were terminated at the reporting date. 

e. Expatriates at Bahrain – Gratuit 

uity: 

y: 

The provision for employees terminal benefits is calculated in accordance with the Bahrain labour law 

and the relevant local laws applicable to overseas subsidiaries and is based on the liability that would 

arise if the employment of the entire Company’s employees were terminated at the reporting date. 

12. Bor 

orro 

rowing Costs 

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalised 

as part of the cost of such asset till such time the asset is ready for its intended use. A qualifying asset is 

an asset that necessarily takes a substantial period of time to get ready for its intended use. All other 

borrowing costs are recognised as an expense in the period in which they are incurred 

13. Revenue enue Recognition 

(i) Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the goods to 

the buyer. Sales are net of Sales Tax, VAT, trade discounts, rebates and returns but includes excise duty. 

142



(ii) Income from services is recognised as they are rendered, based on agreement/arrangement with the 

concerned parties. 

(iii) Interest and other income are recognized on accrual basis. 

14. 

Taxation 

In UAE and Bahrain there is no corporate taxation. Deferred tax relates to Bangladesh as under: 

Deferred tax is recognized in respect of temporary differences between the carrying amount of assets and 

liabilities for financial reporting purposes and the amount used for taxation purposes. Deferred tax is 

measured at the rates that are expected to be applied to the temporary difference when they reverse, 

based on the laws which have been enacted or substantively enacted by the reporting date. 

As deferred tax is recognized for the unused tax losses, tax credits and deductible temporary differences, 

to the extent that it is probable that future tax profit will be available against which temporary differences 

can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that 

it is no longer probable that the related tax benefits will be realized. 

15. Pro 

rovisions, Contingent Liabilities and Contingent Assets 

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of 

a past event, it is probable that an outflow of resources embodying economic benefits will be required to 

settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions, if 

material, are determined by discounting the expected future cash flows at a rate that reflects current 

market assessments of the time value of money and the risk specific to the liability. 

Contingent liabilities are not recognised but are disclosed and contingent assets are neither recognised nor 

disclosed, in the financial statements 

16. Earnings per Share 

The basic Earnings Per Share (“EPS”) is computed by dividing the profit for the year attributable to the 

equity shareholders by the weighted average number of equity shares outstanding during the year. 

For the purpose of calculating diluted earnings per share, profit for the year attributable to the equity 

shareholders and the weighted average number of equity shares outstanding during the year are adjusted 

for the effects of all dilutive potential equity shares. 

17. Segment Reporting Policies 

Primary Segment is identified based on the nature of products and services, the different risks and returns 

and the internal business reporting system. Secondary segment is identified based on geography in which 

major operating divisions of the Company operate. 

B. NOTES 

TO CONSOLIDATED FINANCIAL STATEMENT 

TEMENT 

1. Principles of Consolidation 

The Consolidated Financial Statements (CFS) are prepared on the following basis in accordance with 

Accounting Standard on “Consolidated Financial Statements” (AS – 21), notified under the Companies 

(Accounting Standard) Rules, 2006: 

(i) The financial statements of the Company and its subsidiary companies are combined on a line-byline 

basis by adding together the book values of like items of assets, liabilities, income and 

expenses, after eliminating material intra-group balances and intra-group transactions resulting in 

unrealised profits or losses. 

(ii) The difference between the costs of investment in the subsidiaries, over the net assets as at the 

end of the financial year immediately preceding the year of acquisition of shares in the subsidiaries 

is recognized in the financial statements as Goodwill or Capital Reserve as the case may be. 

(iii) As far as possible, the consolidated financial statements are prepared using uniform accounting 

policies for like transactions and other events in similar circumstances and appropriate adjustments 

are made to the financial statements of subsidiaries when they are used in preparing the 

consolidated financial statements that are presented in the same manner as the Company’s 

separate financial statements. 

(iv) The financial statements of the Company and its Subsidiaries used in the consolidation are drawn 

upto the same reporting date i.e. March 31, 2011. 

143 ⊳



a. The Consolidated Financial Statements (CFS) comprises the financial statements of UltraTech Cement 

Middle East Investments Limited and its Subsidiaries as at 31.03.2011, which are as under: 

Name of the Company 

Country of 

% Beneficial 

Incorporation 

Ownership in 

Shareholding 

and Voting 

Power 2011 

Subsidiary Companies 

i) Arabian Cement Industry L.L.C. U.A.E 80% 

ii) Star Cement Co. L.L.C., RAK U.A.E 80% 

iii) Star Cement Co. L.L.C., Dubai U.A.E 80% 

iv) Al Nakhla Crusher Co. L.L.C. U.A.E 80% 

v) Arabian Gulf cement Co. W.L.L. Bahrain 80% 

vi) Emirates Cement Bangladesh Ltd. Bangladesh 80% 

vii)Emirates Power Company Ltd. Bangladesh 80% 

b. The effect of intra group transactions between the Company and its subsidiaries are eliminated on 

consolidation. 

2. Notes on Accounts of the financial statements of the Company and its Subsidiaries are set out in their 

respective financial statements. 

3. Goodwill represents the difference between the Group’s share in the net worth of a subsidiary, and the 

cost of acquisition at each point of time of making the investment in the subsidiary. For this purpose, the 

Group’s share of net worth is determined on the basis of the latest financial statements prior to the 

acquisition after making necessary adjustments for material events between the date of such financial 

statements and the date of respective acquisition. 

Goodwill arising out of an acquisition of equity stake is translated at the closing rate on each Balance Sheet 

date as per AS 11 “The Effects of Changes in Foreign Exchange Rates” notified under the Companies 

(Accounting Standard) Rules, 2006. In the event of cessation of operations of a subsidiary, the goodwill is 

written off fully. 

4. Secured loans 

The loans of AED 0.74 Crores / INR 8.97 Crores (Previous year Nil) are secured by a first ranking mortgage 

on land and plant and machinery of Bangladesh in favor of the Company’s bankers. 

Bank 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 


Bank Asia, Bangladesh 

(Bangladesh Taka 14.34 

Crores) 0.74 8.97 0.00 0.00 

Tot 

otal 

al 0.74 8.97 0.00 0.00 

5. Contingent Liabilities not provided for in respect of: 

Particular 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 

a) Claims not ackno 

knowledged as debts in 

respect of matters ters in appeals 2010-11 2009-10 

i) Sales-tax NIL NIL NIL NIL 

ii) Excise duty NIL NIL NIL NIL 

iii) Royalty NIL NIL NIL NIL 

iv) Customs NIL NIL NIL NIL 

b) Others 2.69 32.69 NIL NIL 

144



6. Estimated amount of contracts remaining to be executed on capital account and not provided (net of 

advances) AED 6.21 Crores / INR 75.40 Crores. 

7. Segment reporting 

Business Segment: 

The Company is exclusively engaged in the business of cement which, in the context of AS 17 “Segment 

Reporting”, notified under the Companies (Accounting Standard) Rules, 2006, constitutes one single primary 

segment. 

Geographical Segment: 


Geography 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 


U.A.E. 22.19 275.20 0.00 0.00 

Bahrain 2.67 33.15 0.00 0.00 

Bangladesh 5.15 63.93 0.00 0.00 

Tot 

otal 

30.01 372.28 0.00 0.00 

8. Disclosure of related parties / related party transactions 

a. Names of related parties with whom transactions were carried out during the year and description of 

relationship: 

Name of the related party 

Nature of relationship 

UltarTech Cement Limited, India Parent Company 

b. There were no transactions with Key Management Personnel (KMP) and their relatives during the year. 

Nature of transaction 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 


Issue of Equity shares 14.88 180.65 0.60 7.34 

c. Outstanding Balance as on March 31, 2011: 

Nature of transaction 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 


i) Debtors NIL NIL NIL NIL 

ii) Loans and Advances NIL NIL NIL NIL 

iii) Sundry Creditors 0.03 0.41 NIL NIL 

145 ⊳



9. Defer 

erred red tax assets and liabilites as on March 31, 2011. 

Particulars 

Defer 

erred red tax 

Current rent year 

Defer 

erred red tax 

Defer 

erred red tax 

Last year 

Defer 

erred red tax 

(assets)/ 

charge/ 

(assets)/ charge/ 

(credit) (assets)/ 

(liabilities as at 

(credit) (liabilities as at 


charge/ 


01.04.20 

.04.2010 31.03.20 

.03.2011 20.10.20 

0.2009 

09 31.03.20 

.03.2010 

AED 

INR 

AED 

INR 

AED 

INR 

AED 

INR 

AED 

INR 

AED 

INR 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Crores 

Deferred tax asset: 

Provision allowed 

under tax on 

payment basis — — (0.13) (1.62) (0.13) (1.62) — — — — — — 

Unabsorbed losses — — (1.69) (20.54) (1.69) (20.54) — — — — — — 

Total — — (1.83) 

(22.16) 

(1.82) 

(22.16) 

— — — — — — 

Deferred tax liabilities: 

Accumulated 

depreciation (to the 

extent not written 

off or adjusted) — — 1.53 18.62 1.53 18.62 — — — — — — 

Payments allowed 

under tax not 

expenses in books — — — — — — — — — — — — 

Total — — 1.53 

18.62 

1.53 

18.62 

— — — — — — 

Net deferred tax 

liability/ (asset) — — (0.29) (3.54) 0.29 (3.54) — — — — — — 

10. 

0. Auditors 

uditors’ ’ remuneration (excluing service tax) and expenses charged to the accounts: 

Particular 

AED INR 

AED 

INR 

Crores 

Crores Crores 

Crores 


(a) Statutory Auditors: 

Audit fees 0.06 0.70 — — 

Tax audit fees — 0.02 — — 

Fees for other services 0.02 0.22 — 0.02 

Expenses reimbursed NIL NIL NIL NIL 

11. Earnings per Share (EPS): 

Particular 

AED INR 

AED 



(i) Net Profit attributable to Equity Shareholders (Rs. Crores) (3.24) (41.36) — — 

(ii) Weighted average number of Equity Shares 

Outstanding (Nos.) 8,666,018 8,666,018 — — 

Basic EPS (i)/(ii) (3.74) (47.73) — — 


(i) Weighted average number of Equity Shares 

Outstanding 8,666,018 8,666,018 600 600 

(ii) Add: Potential Equity Shares on exercise of option — — — — 

(iii) Weighted average number of Equity Shares 

Outstanding for calculation of Diluted EPS 

(i+ii) 8,666,018 8,666,018 

Diluted EPS {(A)(i)} / (iii) (3.74) (47.73) — — 

Face value of Shares (AED/INR) 10.00 121.47 10.00 122.25 

INR 

146



12. 

Derivativ 

ative Instruments outstanding 

There are no derivatives for hedging currency and interest rates either transaction or outstanding balances 

as on March 31, 2011. 

13. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in 

line with the Company’s financial statements. In the previous period there were no subsidiaries and hence 

the previous period figures pertain to the standalone Company only. 

14. Previous period’s figures have been regrouped and rearranged wherever necessary to conform to this 

year’s classification. Current year comprises of 12 months as against previous period of 5 months and 11 

days, and hence the comparative figures pertaining to the balance sheet, profit & loss and cash flows are 

not comparable. 

147 ⊳

GRASIM BHIWANI 

TEXTILES LIMITED 

To the Members 

Your Directors have pleasure in presenting the 4 th Annual Report together 

with the Audited Accounts of the Company for the year ended March 31, 

2011. 

The financials for the year are summarized below: 

Rs Lacs 




Turnover 32737 27229 

Gross Profit 1972 1853 

Interest 415 582 

Depreciation 795 766 

Profit / (Loss) Before Tax 762 505 

Current Tax 159 47 

Deferred Tax 174 0 

Profit / (Loss) After Tax for the 

period and carried forward 429 458 

OPERATIONS 

During the year under review, the company achieved turnover of Rs. 32,737 

lacs as against Rs. 27,229 lacs for the previous year. The Gross Profit was 

Rs. 1,972 lacs as against Rs. 1,853 lacs of previous year. After providing 

deferred income tax of Rs. 174 lacs, the company has achieved net profit 

of Rs. 429 lacs as against Rs. 458 lacs of previous year when there was 

no provision for deferred tax. 

Your company has achieved SA 8000 and OHSAS 18001 certification during 

the year under review. Six sigma projects have been undertaken for 

reduction in waste generation resulting into higher yarn recovery. 

Two assembly winding machines were installed at Elegant Spinners Division 

to produce polyester viscose stretch yarn. This has helped to replace 

imported or outsourced yarn at higher price. An additional humidification 

plant was commissioned in weaving so as to reduce the temperature in 

sultex section. During the year under review, 10 old suzler looms were 

replaced by 6 new picanol looms. 

In order to maintain sustainable growth, your company is augmenting its 

weaving capacity by outsourcing. 

CAPITAL AL EXPENDITURE 

During the year under review, the company spent Rs. 617 lacs as capital 

expenditure in different departments. 

BUSINESS OUTLO 

TLOOK 

OK 

The Domestic OTC market in India grew by approx.12% in FY 2010-11. 

Lower cotton production and improved global GDP led to surge in cotton 

prices, triggering an increase in VSF/PSF prices. While spinners were able 

to pass on raw material price increase, fabric manufacturers struggled to 

pass on full impact. 

In global business, there is more thrust on women’s wear and special 

blends for better margins. 

DIVIDEND 

In view of the inadequate profits, your Directors have not recommended 

any dividend for the financial year ended March 31, 2011. 

LOAN 

Your Company is regular in repaying its dues to banks etc. and is using 

the funds for the intended purpose. The outstanding balance of the ICD 

taken from Grasim Industries Limited, Holding Company, was Rs. 3,179 

lacs as on 31.03.2011. 

DIRECTOR 

ORS 

Shri Adesh Gupta and Shri Pranab Barua retire from office by rotation at 

the ensuing Annual General Meeting and being eligible, offer themselves 

for re-appointment. 

DIRECTOR 


TEMENT 

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 Annual Accounts, 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 for 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; 

iv) the Directors have prepared the annual accounts on a going concern basis. 

AUDI 

UDITOR 

ORS 

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, be reappointed 

as the 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 have forwarded their certificate to 

the Company, stating that their re-appointment, if made, will be within the 

limit specified in that behalf in Sub-section (1B) of Section 224 of the 


AUDI 

UDIT T COMMITTEE 

The Company has constituted an Audit Committee pursuant to Section 

292A of the Companies Act, 1956, comprising of the following Directors: 

Directors 

Role 

Stat 

atus 

Shri B.V. Bhargava Chairman Independent 

Shri G.M. Dave Member Independent 

Shri Shailendra Jain Member Non-Executive 

Shri Pranab Barua Member Non-Executive 

Shri Adesh Gupta Member Non-Executive 



ABSORPTION AND 

FOREIGN EXCHANGE EARNINGS AND OUTGO 

Information pursuant to Section 217(1)(e) of the Companies Act, 1956 

read with the Companies (Disclosure of Particulars in the Report of Board 

of Directors) Rules, 1988 is given as an Annexure ‘A’ to this Report. 

HUMAN RESOUR 

URCES 

The employer- employee relations remained cordial during the year under 

review. However, small section of the workforce in loom shed resorted to 

strike during the period 31 st January, 2011 to 25 th March, 2011, to put 

pressure on the management for meeting their unreasonable demands. 

During this period, the Company supplemented its production through job 

weaving so that the sales were not affected. The issues with striking 

workers were amicably resolved. 

PAR 

ARTICULAR 

TICULARS OF EMPOLYEES 

YEES. 

There were no employees within the meaning of Section 217(2A) of the 

Companies Act, 1956 read with Companies (Particulars of Employees) 

Rules, 1975 as amended vide GSR 289(E) dt. 31.03.2011. 

APPRECIATION 

Yours Directors thank the customers, business associates, and Banks for 

the faith reposed by them in your company and its management. 

Your Directors place on record their appreciation of the dedication and 

commitment of your company’s employees at all levels and look forward 

to their continued support in the future as well. 


Place: Mumbai 


B. V. . Bhargava 

G. M. Dave 

Adesh Gupta 

Pranab Bar 

arua 

Directors 

148



Information pursuant to Section 217 (1) (e) of the Companies Act, 1956 

read with Companies (Disclosures of Particulars in the report of Board of 

Directors) Rules, 1988 and forming part of the Director’s Report for the 

year ending 31 st March, 2011. 

(A) 

(B) 

(C) 

Conservation of Energy 

Some of the initiatives taken in the year 2010-11 were as follows: 

i) Yarn conditioning steam conversion 

ii) Up gradation of Motor Rewinding Technology 

iii) Use of energy efficient motors- R/F 

iv) Optimisation of Power & Lighting 

Total energy consumption and energy consumption per unit of 

production : As per Form-A 

attached. 

Tec 

echnology 

Absorption 

i) Installed an additional humidification plant in weaving so as to 

reduce the temperature in sultex section. 

ii) Replacement of 10 old suzler looms by 6 new picanol looms. 

iii) Two assembly winders installed in Elegant Spinners to produce 

polyester viscose stretch yarn. 

Foreign Exchange Earnings and Outgo Rs Lacs 


Foreign exchange earned 7133 5467 

Foreign exchange outgo 159 139 

FORM A (Forming part of Annexure 

“A”) 

DISCLOSURE OF PAR 

ARTICULAR 

TICULARS WITH RESPECT TO CONSERVATION 

OF ENERGY 

(A) 

POWER & FUEL CONSUMPTION 

UOM 

Current 

rent Year 

Pre 

revious 

Year 

1 Electricity 

(a) 

Purc 

urchased 

Units ‘000 5297.29 8781.48 

Total Amount Lakhs 293.65 391.71 

Rate per Unit Rs/ Unit 5.54 4.46 

(b) 

Own Generation 

i) Through Diesel Generator 

Units ‘000 813.95 375.76 

Unit per Liter of Furnace Oil Unit 3.50 3.29 

Cost per Unit (Fuel & Duties Only) Rs/ Unit 8.82 5.13 

ii) 

Through Steam Turbine 

Units ‘000 47358.29 49299.30 

Unit per Kg of Steam 

Co-generation 

of power 

& steam 

Cost per Unit Rs/ Unit 5.08 4.01 

2 Coal/ Pet Coke 

For or Steam Generation 

Quantity MT 37669.35 39834.77 

For Co-generation of Power & Steam MT 34719.85 36586.77 

For Steam Coal fired Boiler MT 436.00 391.50 

For Fabric Process MT 2513.50 2856.50 

Total Amount Rs Lakhs 2662.06 2180.97 

Average Rate Rs/ MT 7066.92 5475.05 

(A) 

POWER & FUEL CONSUMPTION 

UOM 

Current 

rent Year 

Pre 

revious 

Year 

3 Furnace Oil (Including LSHS) 

Quantity K. Ltrs 232.25 141.27 

For Power Generation K. Ltrs 232.25 114.27 

For Steam Generation K. Ltrs 0.00 2.00 

For Fabric Process K. Ltrs 0.00 25.00 


Average Rate Rs/ K. ltr 30908.33 19082.27 

4 High Speed Diesel Oil (HSD) 

Quantity K. Ltrs 23.46 51.76 


Average Rate Rs/ K. ltr 30135.78 30780.30 

5 Internal Generation 

(a) 

Steam from oil Fired Boiler 

Quantity MT 0.00 18.00 



(b) 

Steam from coal Fired Boiler 

Quantity MT 3661.00 3177.50 

Total Amount Rs Lakhs 36.65 25.11 


(c) 

From Co-generation of Power 

& Steam 

Quantity MT 39090.76 43513.15 

Total Amount Rs Lakhs NA NA 

Average Rate Rs/ MT NA NA 

(B) 

CONSUMPTION PER UNIT OF PRODUCTION 

UOM 

Current 

rent Year 

Pre 

revious 

Year 

1 Electricity 

In-house Production 

Cloths (Weaved) MT 2598.86 3208.49 

Cloths (Processed) MT 5965.60 5700.30 

Yarn MT 5544.53 5426.93 

Fibre Dyeing MT 2610.84 2466.22 

Power Consumption 

Cloths (Weaved) Units’ 000 9622.17 10834.22 

Cloths (Processed) Units’ 000 5255.26 5536.42 

Yarn Units’ 000 34324.39 34269.62 

Power Consumption Per Unit 

Cloths (Weaved) Units / 100 Kgs 370.25 333.67 

Cloths (Processed) Units / 100 Kgs 88.09 97.13 

Yarn Units / 100 Kgs 619.07 631.47 

2 Steam 

Steam Consumption 

Cloths (Processed) MT 30636.00 32745.49 

Fibre Dyeing MT 12115.76 13963.16 

Steam Consumption Per Unit 

Cloths (Processed) MT / 100 Kgs 0.51 0.57 

Fibre Dyeing MT / 100 Kgs 0.46 0.57 

(C) 

Power Sale Units’000 4267.70 7816.29 

149 ⊳



CEO / CFO CERTIFICA 

TIFICATE 

TE 

CEO & CFO have issued following certificate in respect of the of the financial statements of the Company: 

a) We have reviewed the financial statements and the cash flow statement for the year and that to the best of our 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. 

ii) These statements and other financial information included in this report 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 our knowledge and belief, no transactions entered into by the Company during the year, which are fraudulent, 

illegal or violative of the Company’s Code of Conduct. 

c) We accept responsibility for establishing and maintaining internal accounts for financial reporting and that we have evaluated the 

effectiveness of the internal control systems of the Company pertaining to financial reporting. 

d) We have disclosed to the Auditors and Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we 

are aware and the steps we have taken or propose to take to rectify these deficiencies. 

e) We have indicated to the Auditors and the Audit Committee 

i) Significant changes in internal control over financial reporting during the year. 

ii) Significant changes in accounting policies during the year, if any, and that the same have been disclosed in the notes to the financial 

statements; and 

iii) Instances of significant fraud of which we 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. 

Sd/- Sd/- Sd/- 


S.K. Sharma S.Krishnamoorthy Pranab Barua 

Chief Finance Officer (President) (Director & Business Head) 

& Manager 

150



TO THE MEMBERS OF GRASIM BHIWANI 


1. We have audited the attached Balance Sheet of GRASIM BHIWANI 

TEXTILES LIMITED as at 31 st March, 2011 and also the Profit & Loss 

Account and Cash Flow Statement for the year ended on that date 

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 have 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 


3. As required by the Companies (Auditors’ Report) Order, 2003 (“the 

order”) issued by the Central Government of India in terms of subsection 

(4A) of Section 227 of the Companies Act, 1956, we annex 

here to a statement on the matters specified in paragraphs 4 and 5 

of the said Order. 

4. On the basis of written representations received on 31 st Mach, 2011 

from the directors of the Company and taken on record by the 

Board of Directors, we report that none of the Directors is disqualified 

as on 31 st March, 2011 from being appointed as a director in terms 

of clause (g) of sub-section (1) of section 274 of the Companies Act, 

1956. 

5. Further to our comments in the Annexure to paragraph 3 of 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 purpose 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. Proper returns adequate for the 

purpose of our audit have been received from the branches 

not visited by us. 

c) The Balance Sheet, Profit & Loss Account and Cash Flow 

Statement dealt with by this report are in agreement with the 

books of account and with the audited returns from the 

branches; 

d) In our opinion, the Balance Sheet, Profit & Loss Account and 

Cash Flow Statement dealt with by this report comply with 

the accounting standards referred to in sub-section (3C) of 

Section 211 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 read together 

with notes thereon as appearing in Schedule of Accounting 

Policies and Notes on 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 Balance Sheet, of the state of affairs of 

the Company as at 31 st March 2011; 

ii) in the case of the Profit & Loss Account, of the profit for 

the year ended on that date; and 

iii) in the case of Cash Flow Statement, of the cash flows 

for the year ended on that date. 

For G.P. Kapadia & Co. 

(Chartered Accountants) 

Firm Reg. No. 104768W 

Date : 20 th April 2011 

Place: Mumbai 

Atul B. Desai 

Partner 


151 ⊳



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

1. 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)dealing or trading in shares, securities, debentures and other 

investments of CARO are not applicable. 

2. In respect of its fixed assets: 

a) The Company has maintained proper records showing full 

particulars including quantitative details and situation of fixed 

assets. 

b) Fixed Assets have been physically verified by the management 

according to the regular programme of periodical verification 

in phased manner which in our opinion is reasonable having 

regard to the size of the Company and the nature of its fixed 

assets. The discrepancies noticed on such physical verification 

were not material. 

c) No substantial part of fixed assets has been disposed off 

during the year, which has bearing on the going concern status 

of the Company. 

3. In respect of its inventories: 

a) The inventory of the Company at all its locations (except stocks 

with third parties and in-transit, confirmation/subsequent 

receipt have been obtained in respect of such inventory) has 

been physically verified by the management at reasonable 

intervals. 

b) The procedures of physical verification of inventory followed 

by the management are reasonable and adequate in relation 

to the size of the Company and nature of its business. 

c) The Company is maintaining proper records of inventory. The 

discrepancies noticed on such physical verification of inventory 

as compared to book records were not material. 

4. The Company has neither granted nor taken any loans, secured or 

unsecured to and from companies, firms or other parties covered in 

the register maintained under section 301 of the Companies Act, 

1956. Accordingly, the clauses 4 (iii) (b) to (g) of the Order are not 

applicable. 

5. In our opinion and according to the information and explanations 

given to us, there are adequate internal control procedures 

commensurate with the size of the Company and the nature of its 

business with regard to purchase of inventory, fixed assets and for 

the sale of goods. During the course of our audit, we have not 

observed any continuing failure to correct major weaknesses in 

internal control. 


given to us, there are no transactions that need to be entered into a 

register maintained under Section 301 of the Companies Act, 1956. 

Accordingly, the clause 4 (v) (b) of the Order is not applicable. 


given to us, the Company has complied with the directives issued 

by the Reserve Bank of India and the provision of Section 58A and 

Section 58AA of the Companies Act, 1956 and the rules framed 

there under with regard to deposits accepted from the public. No 

order has been passed by Company Law Board or Reserve bank of 

India or National Company Law Tribunal or any Court or any Tribunal 

in this regard. 

8. In our opinion, the Company has an internal audit system 

commensurate with the size of the Company and nature of its 

business. 

9. 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 made applicable and are of the opinion that 

prima facie the prescribed records have been made and maintained. 

We have, however, not made a detailed examination of the 

said records with a view to determine whether they are accurate or 

complete. 

10. According to the information and explanations given to us in respect 

of statutory dues: 

a) The Company has generally been regular in depositing undisputed 

statutory dues, including Provident Fund, Employees’ State Insurance, 

Income Tax, Sales Tax, Value Added Tax, Wealth Tax, Custom Duty, 

Excise Duty, Service Tax, Cess and other material statutory dues 

applicable to it with the appropriate authorities. 

b) There were no undisputed amount payable in respect of Income 

Tax, Sales Tax, Value Added Tax, Wealth Tax, Custom Duty, Excise 

Duty, Service Tax, Cess and other material statutory dues in arrears 

as at 31 st March 2011 for a period of more than six months from the 

date they became payable. 

c) Details of dues of Income Tax, Sales Tax, Value Added Tax, Custom 

duty, Excise Duty, Service Tax, Cess that have not been deposited 

with the appropriate authorities on account of dispute and the forum 

where the dispute pending are given below: 

Sr.No. 

Name of the stat 

atute 

(Nature of Dues) 

For 

orum where 

dispute is pending 

Amount 

(Rs. In.Lacs.) 

Period 

1 Customs Act, 1962 (Duty) Appellate Authorities 31.35 1991 

2 Central Excise Act, 1944 High Court 274.36 1998-01 

(Duty / Penalty) 

Tribunal 1040.20 1994-02 

Assessing Authorities 27.00 2000-01 

3 Service Tax under the Tribunal 64.61 2007-08 

Finance Act, 1994 (Tax) 

11. The Company has not defaulted in repayment of any dues to financial 

institutions or banks or debenture holders. 

12. According to the information and explanations given to us, the 

Company has not granted any loans and advances on the basis of 

security by way of pledge of shares, debentures and other securities. 

13. In our opinion, according to the information and explanations given 

to us, the term loans were applied for the purpose for which the 

loans were obtained. 

14. In our opinion, on the basis of information and explanations given to 

us, the term loans were applied for the purpose for which the loans 

were obtained. 

15. According to information and explanations given to us, and on an 

overall examination of Balance Sheet of the Company, fund raised 

on short term basis have, prima facie, not been used during the 

year for long term investment. 

16. The Company has not made any preferential allotment of shares to 

any parties or companies covered in the register maintained under 

Section 301 of the Companies Act, 1956 during the year. 

17. On the basis of records made available to us, the company has not 

issued/outstanding debentures during the year. Therefore, clause 

(xix) of the order is not applicable to the company. 

18. The Company has not raised any money through a public issue 

during the year 

19. Based upon the audit procedures performed and on the basis of 

information and explanations provided by the management, we report 

that no fraud on or by the Company has been noticed or reported 

during the course of the audit. 

Date : 20 th April 2011 

Place: Mumbai 

For G.P. Kapadia & Co. 

(Chartered Accountants) 

Firm Reg. No. 104768W 

Atul B. Desai 

Partner 


152



BALANCE SHEET 

AS AT 31ST MARCH, 2011 

(Rs in Lacs) 

As At 

As At 

Schedules 

31/03/2011 31/03 2010 

SOUR 



Share Capital 1 2,005.00 2,005.00 

Reserves and Surplus 2 4,445.17 4,016.57 

6,450.17 6,021.57 

6,450.17 6,021.57 

Loan Funds 

Secured Loans 3 6,371.47 6,514.55 

Unsecured Loans 4 3,179.28 3,046.26 

9,550.75 9,560.81 

9,550.75 9,560.81 

Defer 

erred 

red Tax Liabilities 

(Note 6, Part B of Sch 20) 174.62 174.62 - 

TOTAL FUNDS EMPLOYED 

16,1 

6,175.54 

15,582.38 


Fixed 

Assets 

5 

Gross Block 10,990.97 10,537.69 

Less: Depreciation / 

Amortisation 2,405.92 1,632.09 

Net Block 8,585.05 8,905.60 

Capital Work-in-Progress 163.99 53.98 

8,749.04 

8,959.58 

Current 

rent Assets, Loans 

and Adv 

dvances 

Inventories 6 6,721.97 5,171.95 

Sundry Debtors 7 5,668.51 5,032.01 

Cash and Bank balances 8 31.36 4.38 

Loans and Advances 9 2,104.96 1,878.72 

14,526.80 12,087 

2,087.06 

Less: 

Current rent Liabilities 

and Pro 

rovisions 

Liabilities 10 6,801.90 5,137.96 

Provisions 11 298.40 326.30 

7100.30 

0.30 5464.26 

Net Current 

rent Assets 

0.00 7,426.50 

0.00 6,622.80 

TOTAL FUNDS UTILIZED 

16,1 

6,175.54 

15,582.38 

Singificant Accounting 

Policies and Notes on 

Accounts 

20 & 21 

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

Sheet. 

PROFI 


CCOUNT 

FOR THE YEAR ENDED 31ST MARCH 2011 

(Rs in Lacs) 

Schedules 

For the 

For the 

year ended 

year ended 

31st March, 

31st March, 

INCOME 2011 2010 

Gross Sales 32,760.58 27,228.70 

Less: Excise Duty 23.51 0.00 

Net Sales 32,737.07 27,228.70 

Interest Income 12 156.53 96.82 

Other Income 13 1,588.61 1,578.95 

Increase / (Decrease) in Stocks 14 1,257.63 856.25 

35,739.84 29,760.72 

EXPENDITURE 

Raw Materials Consumed 15 13,030.28 10,173.26 

Manufacturing Expenses 16 8,552.41 6,610.21 

Purchase of Finished and 

Other Products 4,250.36 3,649.23 

Payments to and Provisions 

for Employees 17 3,930.89 3,726.15 

Selling, Distribution, Administration 

and Other Expenses 18 4,003.68 3,748.93 

Interest 19 414.61 581.52 

Depreciation and Amortisation 5 795.58 765.92 

34,977.81 29,255.22 

Profit/(L 

rofit/(Loss) oss) Bef 

efore 

Tax 

762.03 505.49 

Provision for Current Tax-MAT 

(Inclduing Provision for Wealth Tax 150.83 46.78 

Rs.0.54 lacs Previous year 

Rs. 0.64 lacs) 

Short/(Excess) Provision of 

Previous Year -MAT 7.98 - 

Deferred Tax 174.62 - 

Profit/(L 

rofit/(Loss) 

oss) After 

Tax 

428.60 458.71 

Balance brought forward from 

Previous year 16.57 (442.14) 

Balance Carried to Balance Sheet 445.17 16.57 

Basic and diluted earning per 

share (in Rs.) 2.14 2.29 

Signigicant Accounting 

Policies and Notes on 

Accounts 

20 & 21 

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

Loss Account. 

As per our separate report attached 

For G.P.KAPADIA & CO. 

For and on behalf of the 

Chartered Accountants Board of Directors 

(ATUL B.DESAI) S.KRISHNAMOORTHY B. V. BHARGAVA 

Partner President G. M. DAVE 

S. K. SHARMA ADESH GUPTA 

Place : Mumbai ROOPESH KUMAR Head (F&C) & PRANAB BARUA 

Date : 20/04/2011 Company Secretary Manager Directors 

153 ⊳



SCHEDULES FORMING PAR 

ART OF BALANCE SHEET AS AT MARCH, 2011 

(Rs in Lacs) 

SCHEDULE-1 

As At 

As At 

31st March, 

31st March, 

SHARE CAPITAL 

AL 2011 2010 

Authorised 

25000000 Equity Shares of Rs 10 each 2500.00 2500.00 

2500.0 

0.00 2500.0 

0.00 

Issued Subscribed and paid up 

20050000 Equity Shares of 

Rs 10 each fully paid 2005.00 2005.00 

20050000 Shares held by 

Grasim Industires Limited 

2005.0 

05.00 2005.0 

05.00 

SCHEDULE-2 

As At 

As At 

31st March, 

h, 31st March, 

RESERVES 

AND SURPLUS 2011 2010 

Balance as Addition Deduction/ Balance Balance 

1st Apr during the adjustment as at 31st as at 31st 

2010 period during the Mar 11 Mar 10 

period 

Share Premium 

Account 4000.00 - - 4000.00 4000.00 

Profit for 

the year 16.57 428.60 - 445.17 16.57 

4445.17 4016.57 

SCHEDULE-3 

As At 

As At 

31st March, 

h, 31st March, 

SECURED LOANS 


1. From Banks 

Working Capital Borrowings 

(see foot note -1) 8.67 14.55 

2. From Others 

Term Loan from LIC/HDFC Bank 

(see foot note- 2) 6362.80 6500.00 

6371.47 

6514.55 

Foot Notes 

1. Borrowings from banks are secured by Hypothecation of inventory 

and book debts of the Company. 

2. Rupee Term Loan is Secured by first charge on moveable and 

immovable fixed assets both present and future at Bhiwani and 

corporate guarantee of the holding company. 

SCHEDULE-4 

As At 

As At 

31st March, 

31st March, 



Inter Corporate Deposits 

From Holding Company 3179.28 3046.26 

3179.28 

3046.26 

SCHEDULE-5 

FIXED ASSE 

SSETS 

(Rs.in lacs) 

GROSS BLOCK DEPRECIATION NET BLOCK 

As at Additions/ Deduct- As on Upto For the Deduction Upto As on As on 

01.04.10 Transfer ions/ 31.03.11 01.04.10 year &/or 31.03.11 31.03.11 31.03.10 

Transfer 

Transfer 

1 Freehold land 492.39 - - 492.39 - - - - 492.39 492.39 

2 Buildings 1694.56 84.48 - 1779.04 88.01 45.03 - 133.05 1645.99 1606.55 

3 Plant & Machinery 7812.25 350.96 38.99 8124.22 1315.10 642.63 13.10 1944.63 6179.60 6497.15 

4 Furniture, Fittings & 425.34 64.54 7.83 482.05 180.35 84.38 5.00 259.73 222.32 244.99 

Office Equipments 

5 Vehicles etc 67.70 6.79 6.65 67.83 26.49 11.01 3.65 33.85 33.98 41.20 

6 Intangible Assets/ 

Software/License 45.45 - 0.00 45.45 22.14 12.53 - 34.66 10.78 23.31 

10537 

0537.68 

506.77 53.48 10990.97 

1632.09 795.58 21.75 

2405.92 8585.06 8905.60 

Capital Work in Progress 

(Including Capital 

Advances Rs. 80.82) 163.99 53.98 

8749.04 8959.58 

SCHEDULE-6 

As At 

As At 

31st March, 

31st March, 

INVENTORIES (As valued and 2011 2010 

certified by the Management) 

Stores and Spare parts, Packing 

Materials and Fuels 228.60 221.61 

Raw Materials 936.98 651.58 


Process Stock 2320.94 1684.26 

Waste/Scrap Stock 2.16 1.16 

6721.97 

5171 

71.95 

SCHEDULE-7 

As At 

As At 

31st March, 

31st March, 

SUNDRY DEBTOR 

ORS 2011 2010 

Exceeding six months 

Good and Secured - - 

Good and Unsecured 48.25 0.00 

Doubtful and Unsecured - - 

Less: Provisions for Doubtful Debts 

Others 

Good and Secured - - 

Good and Unsecured 5620.26 5032.01 

5668.51 5032.01 

154



SCHEDULES FORMING PAR 

ART OF BALANCE SHEET AS AT MARCH, 2011 

(Contd.) 

SCHEDULE-8 

As At 

As At 

31st March, 

31st March, 

CASH 



Cash Balance on hand 6.11 0.90 

Bank Balances: 

With Scheduled Banks: 

In Current Accounts (Including cheque 

under collection) 25.25 3.48 

31.36 

.36 4.38 

SCHEDULE-9 

As At 

As At 

31st March, 

31st March, 

LOAN 

AND ADVANCES ANCES (Considered Good) 2011 2010 

Unsecured 

Deposits and Balances with Govt. 

and other Authorities 75.95 75.54 

Other Deposits 69.82 71.92 

Advance recoverable in cash or in kind 

or for value to be received 1959.19 1731.26 

2104.96 

1878.72 

SCHEDULE-10 

As At 

As At 

31st March, 

31st March, 

CURRENT LIABILITIES 2011 2010 

Sundry y Creditors 

a) Micro, Small and Medium Enterprises 

(To the extent identified with 

available information) - - 

b) Others 3252.83 1805.16 

Security and other Deposits 471.78 424.60 


(Including Advances from Customer 

Rs. 225.6 Lacs, Previous year Rs 103.69 lacs) 

6801.90 

5137 

37.96 

SCHEDULE-11 

As At 

As At 

31st March, 

31st March, 

PROVISIONS 


Provision for Retirement Benefits 297.81 325.20 

Provision for Taxation 0.59 1.10 

298.40 326.30 

SCHEDULE-12 

For the year 

For the Year 

ended 31st 

ended 31st 

INTEREST T INCOME 

March, 2011 March, 2010 

Others 

Interest(Gross)on 

Bank and other Accounts 156.53 96.82 

SCHEDULE-13 

OTHER INCOME 

156.53 96.82 

For the year 

For the Year 

ended 31st 

ended 31st 


Export Incentives 523.94 404.82 

Rent Received 0.83 0.61 

Power Sales 184.30 421.22 

Insurance Claims 6.11 135.37 

Profit on sale of Fixed Assets (Net) 73.96 - 

Excess Provision written back (Net) 93.12 10.55 

Bad Debt Recovered 5.00 0.25 

Scrap Sales 260.09 243.69 

Miscellaneous Receipts 374.01 325.17 

Gain on Foreign Currency Transactions (Net) 67.27 37.26 

1588.61 1578.94 

SCHEDULE-14 

For the year 

For the Year 

ended 31st 

ended 31st 


INCREASE/(DECREA 

SE/(DECREASE) 

SE) 

IN STOCKS 

Closing Stock 



Waste / Scrap 2.16 1.16 

5556.39 4298.76 

Opening Stock 

Finished Goods 2613.34 2,473.62 


Waste / Scrap 1.16 4298.76 5.98 3442.51 

Increase/(Decrease) in Stocks 

1257 

257.63 

856.25 

SCHEDULE-15 

For or the year 

For the Year 

ended 31st 

ended 31st 

RAW MATERIAL CONSUMED 


Opening Stock 651.58 438.03 

Add : Purc 

urchase and 

Incidental Expenses 13315.68 10386.81 

13967.26 10824.84 

Less : Closing Stock 936.98 651.58 

13030.28 10173.26 

SCHEDULE-16 

For the year 

For the Year 

ended 31st 

ended 31st 



Consumption of Stores, Spare Parts and Components, 

Packing materials and Incidental expenses 2073.47 1716.21 

Power & Fuel 3260.18 2842.73 



Repairs to Machinery 

(excluding Spare Parts and Components) 119.95 185.69 

Repairs Other Assets 54.84 39.83 

SCHEDULE-17 

8552.41 6610.20 

For the year 

For the Year 

ended 31st 

ended 31st 


PAYMENTS 

TO AND 

PROVISIONS FOR EMPLOYEES 

Salaries, Wages & Bonus, etc. 3528.82 3373.87 

Contribution to Provident and Other Funds 292.04 263.76 

Welfare Expenses 110.02 88.52 

SCHEDULE-18 

3930.88 3726.15 

For the year 

For the Year 

ended 31st 

ended 31st 



TRIBUTION, 

TION, 

ADMINISTRA 

TRATION 


Commission to C & F Agents 842.46 669.49 

Brokerage and Discount 487.89 453.55 

Freight Handling & Other Expenses 493.57 376.65 

Advertisements and Publicity 826.78 786.49 

Sales Promotion 435.95 402.46 


Recruitment Expenses 19.64 11.76 

Rent (Including lease rent) 57.03 83.03 

Rates & Taxes 22.96 23.99 

Stationery, Printing, Postage and Telephone Expenses 137.07 146.78 



Internal Audit Expenses 0.15 0.24 

Statutory Audit Fees 1.32 1.20 

Statutory Audit Expenses 1.39 2.15 

Cost Audit Fees 0.74 0.68 

Retail stock verification fee 6.07 3.98 

Loss on sale of Fixed Assets (Net) 0.00 7.79 

Directors’ Fee 0.80 0.70 

Bad Debts wirtten off - 51.95 


Donation - General 0.60 1.54 

4003.68 

03.68 3748.93 

SCHEDULE-19 

For the year 

For the Year 

ended 31st 

ended 31st 

INTEREST 


On Fixed Loan 317.14 320.24 

(Net off TUF Subsidy of Rs 323.12 Lacs, 

Previous Year Rs 325.94 lacs) 

On Other Accounts 97.47 261.28 

414.61 581.52 

155 ⊳



SCHEDULE 20 

ACCO 


CCOUNTS 

A 


1. Accounting Concepts: 

The financial statements are prepared under the historical cost 

convention on accrual basis and in accordance with the applicable 

mandatory Accounting Standards. 

2. Fixed 

Assets: 

Fixed assets are stated at cost (including other expenses related to 

acquisition and installation) less accumulated depreciation/ 

amortisation. 



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 

the exchange rate prevailing on that date. All other exchange 

differences are recognised in profit and loss account. Premium or 

discount on forward exchange contract is amortised as expense or 

income over the life of the contract. 


xpenditure during construction period: 

Expenditure during construction period is included under Capital Work 

in Progress and the same is allocated to the respective Fixed Asset 

on the completion of its construction. 


Inventories are valued at the lower of cost or net realisable value 


The cost is computed on weighted average. 

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 and unserviceable 

inventories are duly provided for. 

6. Researc 


xpenditure: 

Revenue expenditure is charged to the profit and loss account and 

capital expenditure is added to the cost of fixed assets in the period 

in which it is incurred. 

7. Depreciation/Amortization: 

Depreciation/amortisation charge is provided for on the following 

basis: 

a) On fixed assets at 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 

Motor Cars 

5 years 

Computer Software 

3 years 

Furniture & Equipments 

7 years 

Furniture & Equipments for Showroom 5 years 

Computers 

4 years 

Telephone/ Mobile 

3 years 

b) In respect of assets added/disposed of during the Year on prorata 

basis with reference to the month of addition/deduction 

except in case of new projects where it is provided for on the 

basis of the period of use. 

8. Revenue enue Recognition: 

Sales revenue is recognized 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, rebates but includes excise duty. 

Income from services is recognised as the services are rendered, 

based on agreement/arrangement with the concerned parties. 

Interest income is recognised on time proportion basis. Export 

incentives, certain insurance, railway and other claims, where 

quantum of accruals cannot be ascertained with reasonable certainty, 

are accounted on acceptance basis. 

9. Bor 

orro 

rowing 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 

assets are ready for its intended use and other borrowing costs are 

charged to Profit & Loss Account. 

10. 

0. Employee Benefits: 

The Company makes regular contribution to provident fund and 

superannuation fund and these contributions are charged to Profit & 

Loss Account. 

Contributions to the Gratuity Fund and provision for leave encashment 

are made on the basis of actuarial valuation at the end of Year and 

charged to Profit & Loss Account. 

11. Pro 

rovision for Current rent and Defer 

erred 

red Tax: 

a) Provision for Current Tax is made on the basis of estimated 

taxable income for the current accounting Year and in 

accordance with the provisions as per Income Tax Act, 1961. 

b) 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 substantially enacted 

as on the balance sheet date. The deferred tax asset is 

recognized and carried forward only to the extent that there is 

a reasonable certainty that the assets will be adjusted in future. 

12. Pro 

rovisions / Contingencies: 

A provision is recognized 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 provided for and are 

disclosed in the Notes on Accounts. 

Rs. in lacs 


B. NOTES ON ACCO 

CCOUNTS 

1.1 Contingent Liabilities not provided for in respect of: 

Claims not acknowledged as debts 

(includes demands in respect of 

Excise Duty, Cenvat Credit, Water Cess, 

Sales Tax/TAV, Electricity Duty etc.) 

Excise Duty 1464.85 1464.85 

Custom Duty 31.35 31.35 

Stamp Duty 433.80 433.80 

1.2 Estimated amount of Contracts remaining 

to be executed on capital account and 

not provided (Net of advance 

Rs. 53.97 Lacs) 80.81 6.75 

(previous year Rs. 4.46 Lacs) 

2. Advances recoverable in cash or in kind include : 

a) Payment made to employees by way of Loans and Advances 

in the nature of loan where there is 

Rs. in Lacs 

Outstanding as on Maximum Balance 

Outstanding 

31.03.2011 31.03.2010 31.03.2011 31.03.2010 

No Interest or Interest 

below Section 372A 

of Companies 

Act, 1956 147.86 80.83 147.86 108.21 

147.86 80.83 147.86 108.21 

3 There are no Micro, Small and Medium Enterprises, to whom the 

Company owes dues, which are outstanding for more than 45 days 

at the Balance Sheet date. The above information has been 

determined to the extent such parties have been identified on the 

basis of information available with the Company. 

Rs. in Lacs 

4 Auditors’ Remuneration 2011 2010 

a) Statutory Auditors: 

Audit Fee 82725 75000 

Tax Audit Fee 27575 25000 

For Certification and other Work 22060 20000 

b) Cost Auditors: 

Audit Fee 55150 55150 

For Certification and Other Work 

Reimbursement of Expenses - - 

156




5 Earnings per share: 

Net Profit/(Loss) for the Year 

attributable to equity 

shareholders Rs. in Lacs 428.60 458.72 

Weighted average number of 

equity shares outstanding Numbers 2005000 2005000 

Basic and diluted earnings per share 

(face value of Rs.10 each) Rs. 2.14 2.29 

Rs. in Lacs 

6 Defer 

erred 

red Tax 

Assets and Liabilities as on 31st March 2011 1 are as 

under 

Defer 

erred 

red Tax 

Assets 

ssets: 

Expenses allowable in installments in Income Tax 64.89 36.28 

Others 910.50 1256.42 

975.39 1292.70 

Defer 

erred 

red Tax Liability : 

Others - - 

Accumulated Depreciation 1150.01 1166.59 

Net Defer 

erred 

red Tax 

Assets/(Liabilities) 

(174.62) 

126.1 

26.11 

On ground of prudence cumulative MAT Credit entitlement 

amounting to Rs 204.40 Lac has not been recognized ed as an 

assets. 

7 The Company operates in one business segment viz “Manufacturing 

and sales of textiles”, therefore segment information has not been 

furnished. The Company’s operating facilities are located in India. 

Breakup of domestic and export revenue is as under : Rs. In Lacs. 

Current Previous 

Period Period 

Domestic Revenue 25554.90 21889.30 

Export Revenue 7182.17 5339.40 

8. Disclosure of related parties/ related party transactions. 

a) List of related parties 

Name of the Related party 

Nature of Relationship 

Grasim Industries Ltd. 


Sun God Trading & Investment Ltd. Fellow Subsidiary 

Samruddhi Swastik Trading & Investment Ltd. Fellow Subsidiary 

Harish Cement Limited 


Samruddhi Cement Ltd. 

(upto 30th June 2010) 


Ultratech Cement Ltd. 


Dakshin Cement Limited 


Ultratech Cement Lanka Private Limited Fellow Subsidiary 

UltraTech Cement Middle East 


Investment Limited 

Star Cement Co LLC, UAE 


Star Cement Co LLC, RAK, UAE 


Al Nakhla Crusher, LLC, Fujairah, UAE Fellow Subsidiary 

Arabian Cement Industry LLC, Abu Dhabi, UAE Fellow Subsidiary 

Arabian Gulf Cement Co WLL, Bahrain Fellow Subsidiary 

Emirates Power Company Ltd., Bangladesh Fellow Subsidiary 

Emirates Cement Bangladesh Ltd., Fellow Subsidiary 

Bangladesh 

Key Management persons (KMP) 

Mr.S.Krishnamoorthy 

Mr.S.K.Sharma (with effect from 17th April 2010) 

Disclosure of related party transactions: 

S.No. Particulars Name of Company Amount Amount 

(Rs in Lacs) (Rs in Lacs) 


1. Sales & Services GrasimIndustrieLtd. 12.35 - 

Ultratech Cement Ltd. 4.87 - 

2. Purchase of goods/ Grasim Industries Ltd. 2742.26 2331.74 

payment for Ultratech Cement Ltd 6.59 - 

other services Samruddhi Cement Ltd. - 3.76 

3. Interest paid Grasim Industries Ltd. - 144.76 

4. Outstanding balance Grasim Industries Ltd. (201.87) (149.42) 

- Debtors/(Creditors) Ultratech Cement Ltd 4.45 - 

5. Finance taken (ICD) Grasim Industries Ltd. 3179.27 3046.26 

6. Payment for Service S.Krishnamoorthy 15.35 18.97 

S.K.Sharma 22.51 - 

7. Interest & other income S.Krishnamoorthy 1.52 0.66 

(Received/Receivable) 

8. Outstanding balance 

Loan & Advance S.Krishnamoorthy 27.60 27.55 

9. Retirement Benefits 

Rs. in Lacs 

Rs. in Lacs 


A. Defined Benefit Plans : 

a) Gratuity : The Employees’ gratuity scheme is 

managed by Trust. 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.The Amount recognised in respect 

of gratuity is as under: 

(i) Present value of the funded defined benefit 1383.90 1224.49 

obligation at the end of the period. 

Fair value of Plan Assets (1429.05) (1246.11) 

(iii) 

(iv) 

(ii) 

Net Liability/ (Assets) (45.15) (21.62) 

The amounts recognized in salary, wages 

and employee benefit in the Profit and Loss 

Account as follows in respect of gratuity 

Current Service Cost 75.52 77.86 

Interest on defined benefit obligations 104.31 99.75 

Expected return on plan assets 

Past Services Cost (90.55) (79.44) 

Net Actuarial (gain)/loss recognized during 0.46 - 

the period (50.70) (152.62) 

Net Cost 39.02 (54.45) 

Less: Capitalised as pre-operative expenses in - - 

respect of projects/old disputed settlements - - 

Net Charge to Profit and Loss Account 39.02 (54.45) 

Act 

ctual Ret 

eturn on plan assets 

Expected return on plan assets 90.55 79.44 

Actuarial gain/(loss) on plan assets 92.39 60.15 

Actual return on plan assets 182.94 139.59 

Reconciliation of present value of the obligation and the fair 

value of the plan assets: 

Opening defined benefit obligation 

as on 1st April 2010 1224.49 1211.50 

Current Service Cost 75.52 77.86 

Interest Cost 104.31 99.75 

Acturial (Gain)/loss 41.68 (92.47) 

Benefit Paid (62.55) (72.17) 

Past Service Cost 0.46 - 

Closing defined benefit obligation as on 1383.90 1224.49 

31st March 2011 

157 ⊳



(v) 

Rs. in Lacs 

Rs. in Lacs 


Change in fair value of the plan assets 

Opening fair value of the plan assets 1246.11 1043.85 

Expected return on plan assets 90.55 79.44 

Acturial Gain/(Loss) 92.39 60.15 

Contributions by the Employer 62.55 134.83 

Benefits paid (62.55) (72.17) 

Closing Fair value of the plan assets 1429.05 1246.11 

(vi) Investment details of plan assets 

Insurer Managed Fund 100% 100% 

(vii) There are no amount included in the fair 

value of plan assets for 

: 

a. There are no amount included in the fair 

value of plan assets for : 

(i) Company’s own financial instrument 1429.05 1246.11 

(ii) Property occupied by or other assets 

used by the Company 

b. 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 

(viii) Principal 

Act 

cturial 

Assumptions at the Balance Sheet date 


Discount /Rate 8.28% 8.27% 

Estimated rate of return on plan assets 7.50% 7.50% 

The estimates of future salary increases are 

considered, taking into account of inflation, 

seniority promotion and other relevant factors. 8.00% 8.00% 

(ix) 

Experience Adjustments 

Defined Benefit Obligation 1383.90 1224.49 

Plan Assets 1429.05 1246.11 

Surplus/ (Deficit) 45.15 21.62 

Experience adjustment on plan Liabilities 42.78 59.24 

Experience adjustment on plan Assets 92.39 60.15 

b) The obligation for compensated absence 9.40 30.94 

is recognised in the same 

manner as gratuity. 

B. Defined Contribution Plans - 

Amount recognized as an expense and 

included in the schedule 17- “Contribution 

to Provident & Other Funds. 292.04 263.76 

10. Disclosure of Derivativ 

ative Instrument 

(Amount in Mln.) 

Type of Instrument Type of Current Previous Cross 

Exposure Currency Year Year Currency 

A Forward Contracts Exports USD 0.94 2.48 INR 

(for hedging of foreign (Receivables) 

currency exposure) 

B, Unhedged Foreign Currency Exposure as on 31st March 2011 

(Amount in Mln.) 

Type of Exposure Current Previous 

Currency Year Year 

Export (Receivables) USD 1.00 1.00 

11. Additional information required under part-II of Schedule VI to the 

companies Act, 1956 is as per Schedule 21. 




Chartered Accountants Board of Directors 

(ATUL B.DESAI) S.KRISHNAMOORTHY B. V. BHARGAVA 

Partner President G. M. DAVE 

S. K. SHARMA ADESH GUPTA 

Place : Mumbai ROOPESH KUMAR Head (F&C) & PRANAB BARUA 

Date : 20/04/2011 Company Secretary Manager Directors 

158



SCHEDULE-21 


ART II OF SCHEDULE VI TO THE COMPANIES 

ACT 

CT, , 1956 

1. CAPACI 

CITY 

AND PRODUCTION 

( Value Rs in Lacs) 

Products Units Licensed/ Installed Licensed/ Installed Production# Production# 

Registered Capacity Registered Capacity (Quantity) (Quantity) 

Capacity* 

Capacity* 

2010-11 2010-11 2009-10 2009-10 2010-11 2009-10 

1 Man-Made Fibre Fabrics Mtr.(in 000’s) 600 144 600 148 18688.28 17124.38 

Looms Looms Looms Looms 

2 Man-Made Fibre Yarn Kg.(in 000’s) 92500 35808 92500 35808 2332.35 1977.19 

Spindles Spindles Spindles Spindles 

Notes: 

(a) *Registered capacities are those capacities for which registrations granted pursuant to the schemes of delicensing. 

(b) The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter. 

(c ) #Excluding captive consumption of 3212.18 kg 000. (Previous Year 3449.74 Kg.000’s) & Fabric 426.35 Mtr 000 (Previous Year 282.31 Mtr 000). 

2. TURNOVER AND STOCKS 

Products Units Turnover Turnover Stock Stock 

2010-11 2009-10 As on 31st Mar 11 As on 31st Mar 10 

Quantity Value Quantity Value Quantity Value Quantity Value 

1 Man-Made Fibre FabricsMtr.(in 000’s) 23825.98 29093.71 20478.44 24567.75 2297.97 2457.28 2443.23 2457.63 

2 Man-Made Fibre Yarn * Kg.(in 000’s) 2241.48 3593.78 1995.02 2603.85 368.59 776.01 277.71 155.71 

3 Waste 49.58 57.10 2.16 1.16 

Total 32737.07 27228.70 3235.45 2614.50 

Notes: TotalTurnover 

(a) Excluding Inter-Divisional trasfers/ Captive Consumption 

(b) *Including Sales from Weaving shed 174.27 Kg.(in 000’s) Previous Year 319.11 Kg.(in 000’s) 

3. RAW MATERIAL 

TERIALS, , STORES 

ORES, , SPARE PAR 

ARTS 

AND COMPONENTS: 

Rs. In lacs 


Quantity Value Quantity Value 

a) Raw materials Consumed: 

1 Man-Made Polyester Fibre etc Kg.(in 000’s) 3930 3576.45 3813.894 2747.48 

2 Viscose Staple Fibre Kg.(in 000’s) 1816 2743.56 1794.586 2302.31 

3 Man-Made Fibre Yarns Kg.(in 000’s) 3066 6138.78 2718.829 4609.36 

4 Process Stock from GIL 

5 Others (Color chemicals) 571.49 514.11 

Total 13030.28 10173.26 

b) Purchase of Finished goods: 

Fabrics Mtr. (in 000’s) 4992 4,250.36 3680 3649.23 

Fabrics - from GIL 

Yarn - from GIL 

Waste - from GIL 

Total 4250.36 3649.23 

c) Imports at CIF Value: 

Raw Materials 55.73 222.09 

Finished Goods - - 

Spare Parts, Components & Coal 224.92 303.38 

Capital goods 226.94 

d) Total value of Raw materials, Stores, Spare parts and Components consumed: 

Products Raw Material Stores, Spare parts, Components etc 

2010-11 2009-10 2010-11 2009-10 

Value % Value % Value % Value % 

Imported 114.15 1% 157.36 2% 216.39 10% 231.01 13% 

Indigenous 12916.13 99% 10,015.90 98% 1857.08 90% 1485.20 87% 

13030.28 100% 10173.26 100% 2073.47 100% 1716.21 100% 

4 EXPENDITURE IN FOREIGN CURRENCY 2010-11 2009-10 

TotalTurnover 

I) Technical know-how and Services - - 

ii) Professional and consultancy fees - - 

(iii Travelling 56.85 60.49 

iv) Commission 101.90 78.60 

5 EARNING IN FOREIGN EXCHANGE: 


I) Export of Goods -On F.O.B. basis 7132.82 5467.30 

ii) Technical Know-how & Service charges - - 

iii) Inerest and Dividend - - 

iv) Others - - 

Signature to Schedule ‘1’ to ‘21’ 





Board of Directors 

B.V 

.V. . Bhargava 

G.M. Dave 

Adesh Gupta 

(Atul B.Desai) 

Partner 

Roopesh Kumar 

Company Secretar 

ary 

S.K.Sharma 

Head(F&C) & Manager 

S.Krishnamoorth 

.Krishnamoorthy 

President 

Pranab Bar 

arua 

Directors 

Place : Mumbai 

Dated: 20.04.2011 

159 ⊳



CASH FLOW STATEMENT FOR THE PERIOD ENDED 31ST MARCH, 2011 

Current Year 

(Rs in Lacs) 

Previous Year 


a. Net Profit before tax and exceptional item 762.03 505.49 

Adjustment for : 

Depreciation 795.58 765.92 

Interest Expenses 414.61 581.52 

(Profit)/Loss on sale of Fixed Assets (Net) (73.96) 7.79 

b. Operating profit before working capital changes 1898.26 1860.73 

Adjustments for ; 

Trade and other receivables (862.74) (100.47) 

Inventories (1550.02) (1027.87) 

Trade Payable 1,636.05 823.90 

c. Cash generated from Operations 1121.54 1556.29 

Direct Taxes Paid (Net) (150.83) (46.78) 

Cash from operating activities before exceptional item 970.72 1509.51 

Net Cash from Operating Activities 970.72 1,509.51 

B. Cash Flow from Investing Activities 

Purchase of fixed assets (616.78) (211.54) 

Sale of fixed assets 105.69 5.76 

Issue of Shares/ Premium — 0.00 

Net Cash from / (used in) investing activities (511.09) 

(205.78) 

C. Cash Flow From Financing Activities 

Proceeds from borrowings (10.06) (721.22) 

Interest paid (414.61) (581.52) 

Net Cash from / (used in) financing activities (424.61) (1302.7 

302.74) 

4) 

D. Net increase/ (Decrease) in Cash and Cash equivalent 

Cash and Cash equivalent at beginning of the year 4.38 3.40 

Cash and Cash equivalent at end of the year 31.36 4.38 

(Cash and cash equivalent represent Cash and Bank balances) 

Signature to Schedule ‘1’ to ‘21’ 




(Atul B.Desai) 

Partner 

Place : Mumbai 

Dated: 20.04.2011 

Roopesh Kumar 


S.K.Sharma 


S.Krishnamoorthy 

President 



B.V. Bhargava 

G.M. Dave 

Adesh Gupta 

Pranab Barua 

Directors 

160




ART T IV OF SCHEDULE VI TO THE COMPANIES 

ACT 

CT, , 1958 

Balance Sheet abstract and Company’s General Business Profile 

1 Registration Details 

Company Identity No. U 1 7 1 2 0 M H 2 0 0 7 P L C 1 7 3 9 9 3 

Balance Sheet Date 3 1 - 0 3 - 2 0 1 1 State Code 1 1 

2 Capital raised during the period (Amount in Rs. Thousands) 

Public Issue 

Rights Issue 

Bonus Issue 


3 Position of Mobilisation and Development of funds (Amount in Rs. Thousands) 



Total Assets 

2 3 2 7 5 8 4 2 3 2 7 5 8 4 



2 0 0 5 0 0 4 4 4 5 1 7 

Secured Loans 


6 3 7 1 4 7 3 1 7 9 2 8 

Deferred Tax 


1 7 4 6 2 


Investments 

8 7 4 9 0 4 0 0 



7 4 2 6 5 0 0 0 


0 0 

4 Performance of the Company (Amount in Rs. Thousands) 

Turnover 


3 5 7 3 9 8 4 3 4 9 7 7 8 1 

+ /– Profit/(Loss) before Tax +/– Profit/(Loss) after Tax 

+ 7 6 2 0 3 + 4 2 8 6 0 

Earnings per Share (in Rs.) Dividend Rate (%) 

2 0 

5 Generic Names of Three Principal Products of the Company (As per monetary terms) 

Item Code No. (ITC Code) 

Products Description 

a) Item Code No. 5 5 1 5 1 1 3 0 

Product Description F A B R I C 

b) Item Code No. 5 5 0 9 5 1 0 0 

Product Description Y A R N 

c) Item Code No. – – 

Product Description – – 

Roopesh Kumar 

Company Secretar 

ary 

S.K.Sharma 


S.Krishnamoorth 

.Krishnamoorthy 

President 



B.V. Bhargava 

G.M. Dave 

Adesh Gupta 

Pranab Bar 

arua 

Directors 

161 ⊳

SAMR 

AMRUDDHI SWASTIK 

TRADING AND 

INVESTMENTS LIMITED 

DIRECTOR 


TO THE MEMBERS 

Your Directors have pleasure in presenting the Seventeenth Annual Report 

of your Company together with the Audited Accounts for the year ended 

31st March, 2011 

` in Thousand 




Current 

rent Year 

Pre 

revious 

Year 

Profit Before Tax 16,839.99 36,419.56 

Less: Provision for Tax 

Current Tax 2,473.31 1,972.86 

Earlier year (17.48) 2,455.83 449.37 

14,384.16 33,997.33 

Balance brought forward 

from earlier year 152,004.70 124,806.84 

166,388.86 158,804.17 

Appropriations: 

Transfer to Special Reserve Fund 2,876.83 6,799.47 

Transfer to General Reserve 100,000.00 - 

Balance Carried to Balance Sheet 63,512.03 152,004.70 

DIVIDEND 

166,388.86 158,804.17 

- - 

With a view to conserve resources, your Directors do not consider it 

appropriate to recommend dividend on equity shares for the Financial Year 

ended 31st March, 2011. 

DEPOSITS 

Your Company has not accepted any public deposits during the year. Hence, 

no information is required to be disclosed in this report in terms of Non 

Banking Financial Companies (Reserve Bank) Directions, 2007. 

DIRECTOR 

ORS 

Shri Adesh Gupta retires from office by rotation at the ensuing Annual 

General Meeting and being eligible offer himself for re-appointment. 

MANAGER 

Shri Kundan Lodha’s tenure as the Manager of the Company has ended 

on 31st December, 2010. Shri Anil Ladha has been appointed as the 

Manager of the Company w.e.f.1st January, 2011. 

DIRECTOR 

ORS’ S’ RESPONSIBILITY TY STATEMENT 

TEMENT 

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 judgements 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. 

AUDI 

UDIT COMMITTEE 

The Company has an Audit Committee at the Board level and the Audit 

Committee comprises of the following directors:- 

1 Shri G.K.Tulsian 

2 Shri Shailendra K. Jain 

3 Shri Adesh Gupta 

During the year under review, the Audit Committee of the Board met 

twice to deliberate on various matters. 

AUDI 

UDITOR 

ORS 

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. 

Messers Amritlal H. Jain & Co., Chartered Accountants, the Auditors of 

the Company, retire at the ensuing Annual General Meeting and being 

eligible offer themselves for re-appointment. 

PAR 

ARTICULAR 


The Company had no employee in the Category specified Under Section 

217 (2A) of the Companies Act, 1956. 



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 

Mumbai 

Date: 29 April, 2011 

G.K. Tulsian 

Shailendra K. Jain 

Adesh Gupta 

Directors 

162

SAMR 


TRADING AND 


AUDI 

UDITOR 

OR’S ’S REPORT 

THE MEMBERS S OF SAMR 


TRADING AND 


1. We have audited the attached Balance Sheet of Samruddhi Swastik 

Trading and Investments Limited as at 31st March, 2011 and also 

the Profit and Loss Account and Cash Flow Statements of the 

Company for the year ended on that date. 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 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 mis-statements. An 

audit includes examining, on a test basis, evidence supporting the 

amounts and disclosures in financial statements. An audit also 

includes assessing the accounting principles used and 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 issued 

by the Central Government of India in terms of sub-section (4A) of 

section 227 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 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 purpose 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 


(c) The Balance Sheet, Profit and Loss Account and Cash Flow 

Statement dealt with by this Report are in agreement with the 

books of account. 

(d) In our opinion, the Balance Sheet, Profit and Loss Account 

and Cash Flow Statement dealt with by this report comply 

with the accounting standards referred to in sub-section 3 (c ) 

of Section 211 of the Companies Act,1956; 

(e) On the basis of written representations received from the 

directors, as on 31st March 2011 and taken on record by the 

Board of Directors, we report that none of the directors is 

disqualified as on 31st March, 2011 from being appointed as 

directors in terms of clause (g) of sub-section (1) of section 

274 of the Companies Act, 1956; 

(f) 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 confirmity 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, 2011. 

(ii) In the case of the Profit and Loss Account, of the Profit 

of the Company for the year ended on that date; and 

(iii) In the case of Cash Flow Statement, of the Cash Flow 

for the year ended on that date. 

Dated : 29 April, 2011 

Place: Ujjain 

for 

AMRITLAL H. JAIN & CO. 


Amritlal H. Jain, 

Partner 

ANNEXURE REFERRED TO O IN PARA 

ARAGRAPH 3 OF OUR UR REPORT T OF 

EVEN DATE TE ON THE ACCO 

CCOUNTS OF SAMR 


TRADING 

AND INVESTMENTS LTD 

TD. . FOR THE YEAR ENDED ON MARCH CH 31ST 

2011 

1. Fixed 

Assets : 

(a) The Company has maintained proper records showing full 

particulars including quantitative details and situation of its 

fixed assets. 

(b) These fixed assets were physically verified by the management 

during the year. We have been informed that no material 

discrepancies were noticed on such physical verification. 

(c) No part of fixed assets has been disposed of during the year, 

which affects its status as going concern. 

2 In our opinion the company has an internal audit system 

commensurate with its size and nature of business. 

3 In our opinion and according to the information and explanations 

given to us, no undisputed amounts payable in respect of aforesaid 

dues were outstanding as at March 31, 2011 for a period of more 

than six months from the day they became payable. 

4 The Company has no accumulated losses. The company has not 

incurred cash losses in the financial year under report and financial 

year immediately preceding such financial year. 

5 In our opinion, the funds raised on short term basis have not been 

used for long term investments. 

6 In our opinion and according to the information and explanations 

given to us, and due to the nature of the Company’s business / 

activities during the year the clauses (ii) to (vi), (viii), (xi) to (xvi) and 

(xviii) to (xxi) of paragraph 4 & 5 of the Companies (Auditor’s Report 

) Order, 2003 are not applicable to the company. 

Date : 

Place: Ujjain 

For AMRITLAL H. JAIN & CO. 


AMRITLAL H. JAIN 

Partner 

The Board of Directors of 

Samruddhi Swastik Trading and Investments Limited 

Birlagram Nagda 456 311 (M.P.) 

Dear Sirs, 

Report under Non-Banking Financial Companies Auditors 

uditors’ ’ Report 

(Reser 

eserve e Bank) Directions, 2008 

08 

As required by the Non-Banking Financial Companies Auditors’ Report 

(Reserve Bank) Directions, 2008, in our opinion and on the basis of such 

checks of the books and records as we considered appropriate and according 

to the information and explanations given to us during the course of 

verification which were necessary to the best of our knowledge and belief, 

we state on the matters specified in paragraphs of the said Directions for 

the year ended 31 st March, 2011 as under: 

a) The Company has applied for registration as provided in the Section 

451A of the Reserve Bank of India Act, 1934 (2 of 1934) and has 

received the registration certificate No.03.00037 dated 03.03.1998 

from Reserve Bank of India; 

b) The Board of Directors have passed a resolution on 29.04.2011 for 

non-acceptance of any public deposit; 

c) The Company has not accepted any deposit from public during the 

year ended 31 st March, 2011 and 

d) The Company has complied with prudential norms relating to income 

recognition, accounting standards, asset classification and provisioning 

for bad and doubtful debts as applicable to it. 

For 

Amritlal H. Jain & Co. 


Amritlal H. Jain 

Partner 

Date: 29 April, 2011 Membership No. 02154 

Place: Ujjain 

163 ⊳

SAMR 


TRADING AND 


BALANCE SHEET AS AT T 31ST T MARCH, 2011 

` in Thousand 

SOUR 

URCES OF FUNDS As at 31st As at 31st 



Share Capital 

Authorised : 

6,999,000 Equity Shares of Rs. 10 each 69,990.00 69,990.00 

100 15% Redeemable Cumulative Preference Shares of Rs. 100 each 10.00 10.00 

70,000.00 70,000.00 

Issued, Subscribed and Paid up : 

6,500,000 Equity Shares of Rs.10 each fully paid up (6,500,000 Shares held 

by Grasim Industries Limited.) 65,000.00 65,000.00 

Reser 

eserves & Surplus 

Special Reser 

eserve e Fund 

Opening Balance 29,343.66 22,544.19 

Add: Additions during the year 2,876.83 6,799.47 

32,220.49 29,343.66 

General Reser 

eserve 

Opening Balance - - 

Add: Additions during the year 100,000.00 - 

100,000.00 - 

Profit and Loss 

Account 

Opening Balance 152,004.70 124,806.84 

Add/(Less) : Additions/(Deductions) during the year (88,492.67) 27,197.86 

63,512.03 152,004.70 

TOTAL 

260,732.52 246,348.36 


Fixed 

Assets 

Sch. ‘A’ 

Gross Block 75,201.93 75,201.93 

Less: Depreciation 34,769.57 32,641.55 

Net Block 40,432.36 42,560.38 

Investments 

(at cost unless otherwise stated) 

Long 

Term 

Shares, Bond & Debentures 

Equity Shares - Fully Paid 

(a) Quoted 

Equity Shares Sch. ‘B’ 210.60 210.60 

(b) Unquoted 

11,500 Aditya Birla Power Company Limited Rs.10/- each 115.00 115.00 

250 Aditya Birla Science and Technology Limited Rs 10/- each 2.50 2.50 

Current 

rent - Unquoted 

Units of Debt Schemes of Mutual Fund 

250,541 Birla Sunlife Fixed Term Plan Series CE - Growth 2,505.41 - 

221,429 Birla Sunlife Fixed Term Plan Series CI - Growth 2,214.29 - 

10,000,000 Birla Sunlife Fixed Term Plan Series CK - Growth 100,000.00 - 

11,907,430 Birla Sunlife Fixed Term Plan Series CM - Growth 119,074.30 - 

500,636 Birla Sunlife Fixed Term Plan Series CT - Growth 5,006.36 - 

Birla Sunlife Cash Plus Retail Daily Div - Reinv. - 500.06 

Birla Sunlife Dynamic Bond Retail Monthly Div - Reinv. - 205,989.69 

Birla Sunlife Savings Fund Instl. Daily Div - Reinv. - 1,002.52 

Birls Sunlife Medium Term Plan Retail Fortnight Div - Reinv. - 2,017.14 

229,128.46 209,837.51 

Aggregate Book Value of: 

a) Quoted Investments 210.60 210.60 

b) Unquoted Investments 228,917.86 209,626.91 

Aggregate Market Value of Quoted Investments 235.95 220.95 

Current 


dvances 

Sundry Debtors 

Unsecured, considered Good, Less than six months 1.68 - 

Cash and Bank Balances 

Balances with Scheduled Banks in Current Accounts 69.75 166.34 

Loans and Adv 

dvances 

Deposit with Government Authorities 24.47 24.47 

Advance Income Tax (Net of Provision 2,473 Thousands) 41.10 339.58 

137.00 530.39 

Less: Current rent Liabilities & Pro 

rovisions 

Current rent Liabilitie 

Security and other Deposits 8,502.30 6,433.92 

Payable to Holding Company 400.00 


8,965.30 6,579.92 

Net Current 

rent Assets 

(8,828.30) (6,049.53) 

TOTAL 

260,732.52 246,348.36 

Significant Accounting Policies and Notes on Accounts 

Sch. ‘C’ 

The schedules refer 

erred red to above form an integral part of the Balance Sheet 

As per our report of even date attached to the Balance Sheet FOR SAMRUDDHI SWASTIK TRADING AND INVESTMENTS LIMITED 

For AMRITLAL H. JAIN & CO., 


AMRITLAL H.JAIN 

G.K. Tulsian 

Partner 


UJJAIN ANIL KUMAR LADHA Adesh Gupta 

Dated : 29 April, 2011 Manager and Company Secretary Directors 

164

SAMR 


TRADING AND 


PROFI 


CCOUNT FOR THE YEAR ENDED 31ST T MARCH, 2011 ` in Thousand 

For the year For the year 

ended 31st ended 31st 


INCOME 

Interest Income 42.06 249.51 

(Tax deducted at source ` Nil , Previous year ` 56 thousand) 

Rent Income 10,341.70 8,779.58 

(Tax deducted at source ` 1052 thousand, Previous year ` 1466 thousand) 

Dividend Income 8,223.32 30,552.26 

Profit on Sale of Mutual Fund Units 514.26 - 

19,121.34 39,581.35 

EXPENDITURE 

Auditors’ Remuneration 

Audit Fee 10.00 10.00 

Tax Audit Fee - 5.00 

10.00 15.00 

Municipal Tax - 15.06 

Legal & Professional Fees 76.93 136.85 

Maintenance Charges - 57.22 

Bank Charges 0.47 2.52 

General Charges 64.01 42.66 

Interest Paid 1.92 652.46 

Depreciation 2,128.02 2,240.02 

2,281.35 3,161.79 

Profit before 

Tax 

16,839.99 

36,419.56 

Provision for Current Tax 2,473.31 1,972.86 

Provision for tax for earlier years (17.48) 449.37 

Profit after 

Tax 

14,384.1 

4,384.16 33,997.33 

Balance brought forward from previous year 152,004.70 124,806.84 

Profit available ailable for 


158,804.1 

58,804.17 

Appropriations: 

Transfer to Special Reserve Fund 2,876.83 6,799.47 

Transfer to General Reserve 100,000.00 - 

Balance Carried to Balance Sheet 63,512.03 152,004.70 

166,388.86 

158,804.1 

58,804.17 


Schedule ‘C’ 


erred red to above form an integral part of the Profit and Loss 

Account 

As per our report of even date attached to the Balance Sheet 

FOR SAMRUDDHI SWASTIK TRADING AND INVESTMENTS LIMITED 




G.K. Tulsian 

Partner 




165 ⊳

SAMR 


TRADING AND 


SCHEDULE FORMING PART OF ACCOUNTS 

` in Thousand 

Schedule ‘A’ 

Fixed Assets 

Particulars Gross Block Depreciation Net Block 

As at Additions As at As at Additions Upto As at As at 

1st Apr’10 31st Mar’11 1st Apr’10 31st Mar’11 31st Mar’11 31st Mar’10 

Buildings 75,201.93 - 75,201.93 32,641.55 2,128.02 34,769.57 40,432.36 42,560.38 

Total 75,201.93 

- 75,201.93 

32,641.55 

2,128.02 

28.02 34,769.57 

40,432.36 42,560.38 

Previous year 75,201.93 - 75,201.93 30,401.53 2,240.02 32,641.55 42,560.38 44,800.40 

Schedule ‘B’ 

Amount in ` 

Sr Name of the Company Avg Cost Qty Value Market Rate Market Value 

No. 

1 ABB Ltd. 806.13 5 4,030.63 796.80 3,984.00 

2 ACC Ltd. 915.46 5 4,577.30 1,074.55 5,372.75 

3 Ambuja Cements Ltd. 106.61 5 533.07 147.40 737.00 

4 Axis Bank Ltd. 1,098.24 5 5,491.19 1,403.85 7,019.25 

5 Bharat Heavy Electricals Ltd. 2,376.85 5 11,884.26 2,062.65 10,313.25 

6 Bharat Petroleum Corporation Ltd. 591.50 5 2,957.49 611.85 3,059.25 

7 Bharti Airtel Ltd. 282.56 5 1,412.78 357.40 1,787.00 

8 Cairn India Ltd. 269.94 5 1,349.70 350.95 1,754.75 

9 Cipla Ltd. 321.67 5 1,608.37 321.65 1,608.25 

10 DLF Ltd. 303.75 5 1,518.74 268.55 1,342.75 

11 GAIL (India) Ltd. 408.45 5 2,042.26 464.00 2,320.00 

12 HCL Technologies Ltd. 366.82 5 1,834.08 477.95 2,389.75 

13 HDFC Bank Ltd. 1,689.94 5 8,449.71 2,345.85 11,729.25 

14 Hero Honda Motors Ltd. 1,702.11 5 8,510.55 1,589.45 7,947.25 

15 Hindustan Unilever Ltd. 243.30 5 1,216.48 287.10 1,435.50 

16 HDFC Ltd. 498.05 25 12,451.35 701.20 17,530.00 

17 I T C Ltd. 125.76 10 1,257.56 182.10 1,821.00 

18 ICICI Bank Ltd. 841.38 5 4,206.88 1,116.20 5,581.00 

19 Infosys Technologies Ltd. 2,553.60 5 12,767.98 3,241.30 16,206.50 

20 Infrastructure Development 

Finance Co. Ltd. 155.64 5 778.20 154.60 773.00 

21 Jaiprakash Associates Ltd. 134.84 5 674.18 92.80 464.00 

22 Jindal Steel & Power Ltd. 618.03 5 3,090.15 697.30 3,486.50 

23 Mahindra & Mahindra Ltd. 507.80 10 5,078.04 700.35 7,003.50 

24 Maruti Suzuki India Ltd. 1,375.87 5 6,879.36 1,262.15 6,310.75 

25 NTPC Ltd. 204.71 5 1,023.55 193.10 965.50 

26 ONGC Ltd. 277.67 20 5,553.40 291.30 5,826.00 

27 Power Grid Corporation 

of India Ltd. 107.95 5 539.73 101.90 509.50 

28 Punjab National Bank 893.61 5 4,468.03 1,212.70 6,063.50 

29 Ranbaxy Laboratories Ltd. 445.05 5 2,225.27 445.60 2,228.00 

30 Reliance Capital Ltd. 756.72 5 3,783.58 583.15 2,915.75 

31 Reliance Communications Ltd. 167.21 5 836.04 107.65 538.25 

32 Reliance Industries Ltd. 998.89 5 4,994.46 1,049.10 5,245.50 

33 Reliance Infrastructure Ltd. 1,031.73 5 5,158.67 630.75 3,153.75 

34 Reliance Power Ltd. 141.48 5 707.42 130.40 652.00 

35 Siemens Ltd. 677.90 5 3,389.52 881.05 4,405.25 

36 State Bank of India 1,929.07 5 9,645.36 2,765.30 13,826.50 

37 Steel Authority of India Ltd. 209.87 5 1,049.37 169.60 848.00 

38 Sterlite Industries (India) Ltd. 190.51 20 3,810.13 173.70 3,474.00 

39 Sun Pharmaceutical Industries Ltd. 310.18 25 7,754.49 442.50 11,062.50 

40 Suzlon Energy Ltd. 71.50 5 357.50 44.60 223.00 

41 TCS Ltd. 762.31 5 3,811.57 1,183.90 5,919.50 

42 Tata Motors Ltd. 710.78 5 3,553.90 1,248.35 6,241.75 

43 Tata Power Co. Ltd. 1,254.99 5 6,274.96 1,335.15 6,675.75 

44 Tata Steel Ltd. 574.23 5 2,871.16 622.25 3,111.25 

45 Unitech Ltd. 70.90 5 354.52 40.40 202.00 

46 Wipro Ltd. 420.13 8 3,361.02 480.20 3,841.60 

47 Andhra Cements Ltd. 27.54 5 137.71 14.15 70.75 

48 Barak Valley Cements Limited 26.54 5 132.70 19.20 96.00 

49 Binani Cement Limited 72.84 5 364.22 87.50 437.50 

50 Birla Corporation Ltd. 365.98 5 1,829.90 338.70 1,693.50 

51 Burnpur Cement Limited 14.87 5 74.34 8.20 41.00 

52 Century Textiles & Industries Ltd 490.51 5 2,452.53 350.55 1,752.75 

53 Chettinad Cement Corporation Ltd 560.82 5 2,804.10 468.30 2,341.50 

54 Dalmia Bharat Enterprises Ltd. 

(Dalmia Cement (Bharat) Ltd) 213.85 5 1,069.27 185.00 925.00 

54A Dalmia Bharat Sugar and 

Industries Ltd. FOC 5 24.30 121.50 

55 Deccan Cements Ltd 192.93 5 964.65 140.00 700.00 

56 Gujarat Sidhee Cements Ltd 16.65 5 83.26 11.05 55.25 

57 JK Cement Limited 189.86 5 949.30 141.00 705.00 

58 JK Lakshmi Cement Limited 75.49 5 377.44 50.90 254.50 

59 Kakatiya Cement Sugar & Industries Ltd 90.67 5 453.37 71.00 355.00 

60 Kesoram Industries Ltd. 368.16 5 1,840.81 206.15 1,030.75 

61 Madras Cements Ltd. 115.38 5 576.92 101.95 509.75 

62 Mangalam Cement Ltd 169.91 5 849.54 111.80 559.00 

63 OCL India Ltd. 131.19 5 655.94 110.10 550.50 

64 Prism Cement Limited 51.83 5 259.17 52.65 263.25 

65 Sagar Cements Ltd. 178.40 5 891.98 138.05 690.25 

66 Sanghi Industries Limited 29.11 5 145.55 19.25 96.25 

67 Saurashtra Cement Ltd. 20.50 5 102.50 16.50 82.50 

68 Shree Cements Ltd 2,098.80 5 10,493.99 2,070.05 10,350.25 

69 Shree Digvijay Cement Co. Ltd. 16.56 5 82.81 10.83 54.15 

70 The India Cements Limited 122.61 5 613.07 95.60 478.00 

71 Heidelberg Cement India Ltd 44.47 5 222.33 43.80 219.00 

72 K.C.P. Ltd. 30.37 50 1,518.29 25.40 1,270.00 

73 Panyam Cements & 

Mineral Industries Ltd. 106.56 5 532.81 69.25 346.25 

210,602.44 

235,954.25 

. 

166

SAMR 


TRADING AND 


Schedule ‘C’ 


1. Significant Accounting Policies : 

a) Revenues are accounted for on accrual basis. Dividend income 

on investments is accounted for when the right to receive the 

payment is established. Interest income is recognised on time 

proportion basis. 

b) Fixed Assets are stated at cost, less accumulated depreciation. 

Cost comprises the purchase price and attributable cost of 

bring the assets to its working conditions for its intended use. 

c) Current investments are stated at lower of cost and fair value. 

Long term investments are stated at cost after deducting 

provision made, if any, for other than temporary diminution in 

value. 

d) Depreciation is charged on Written Down Value Method 

applying rates as provided in Schedule XIV of the Companies 

Act 1956. 

2. Building includes Rs. 67486 Thousands being cost of 11,194 Equity 

Shares (Face Value Rs 10 each) and 1,23,980 0% Debentures of a 

Company, entitling the Company the right of exclusive occupation 

and use of certain office premises. 

3. Additional information required under Paragraphs 4C and 4D of Part 

II of Schedule VI to the Companies Act, 1956:- Nil 

4. As per Accounting Standard 18 issued by the Institute of Chartered 

Accountants of India, the related parties are as under: 

a) Holding Company - Grasim Industries Ltd. 

b) Fellow subsidiaries: 


2 Sun God Trading And Investments Limited 

3 Grasim Bhiwani Textiles Ltd. 

4 Samruddhi Cement Limited 

5 Dakshin Cement Limited 

6 UltraTech Cement Lanka Private Limited 


8 UltraTech Cement Middle East Investment Limited 

9 Star Cement Co LLC, Dubai, UAE 

10 Star Cement Co LLC, RAK, UAE 

11 Al Nakhla Crusher, LLC, Fujairah, UAE 

12 Arabian Cement Industry LLC, Abu Dhabi, UAE 

13 Arabian Gulf Cement Co WLL, Bahrain 

14 Emirates Power Company Ltd., Bangladesh 

15 Emirates Cement Bangladesh Ltd., Bangladesh 

c) Details of Related Party Transactions: ` in Thousand 

Sr Nature of Transac- Transac- Outstanding on Outstanding 

No. transactions tions tions 31 st Mar’11 31 st Mar’10 

during during Liability Asset Liability Asset 

FY 11 FY 10 

1 Rent for 

Offices, 

Garages Nil 923.52 Nil Nil Nil Nil 

leased to 

Grasim 

Industries Ltd. 

(Net of Service Tax) 

2 Rent for Offices, 

Garages 3,752.70 1,957.58 Nil Nil Nil Nil 

leased to 

UltraTech 

Cement Ltd. 

(Net of Service Tax) 

3 Interest free 

deposit received (692.64) 158.49 Nil Nil 692.64 Nil 

from Grasim 

Industries Ltd 

as per Lease 

Agreement 

4 Interest free 

deposit received 1,682.82 535.68 3,111.30 Nil 1,428.48 Nil 

from UltraTech 

Cement Ltd. 

as per Lease 

Agreement 

5 Advance received/ 

(Paid) 400.00 (1,548,909.75) 400.00 Nil Nil Nil 

to Grasim 

Industries Ltd 

5. Previous year’s figures have been regrouped wherever necessary to 

make them comparable 

6. All the Amounts have been rounded off to Rupees Thousand with 

Hundreds in Decimals. 


FOR SAMRUDDHI SWASTIK TRADING AND INVESTMENTS LIMITED 




G.K. Tulsian 

Partner 




167 ⊳

SAMR 


TRADING AND 


(as required in terms of Paragraph 13 3 of Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reser 

eserve e Bank) 

Direction,2007 

07 

Particulars 

Amount in ` 

Liabilities side : 

(1) Loans and advances availed by the Non Banking Financial Company Amount Amount 

inclusive of interest accrued thereon but not paid: outstanding overdue 

(a) Debentures : 

(i) Secured — — 

(ii) Unsecured (Other than falling within the meaning of public deposit) — — 

(b) Deferred Credits — — 

(c) Term Loans — — 

(d) Inter-corporate loans and borrowing — —- 

(e) Commercial Paper — — 

(f) Other Advance 400,000 — 

* Please see Note 1 below 

Assets side : 

(2) Break-up of Loans and Advances including bills receivables Amount 

[other than those included in (4) below] : 

outstanding 

(a) Secured — 

(b) Unsecured (Including Advance Tax Net of Provsions) — 

(3) Break up of Leased Assets and stock on hire and 

otherr assets counting towards AFC 

(i) Lease assets including lease rentals under sundry debtors : 

(a) Financial lease — 

(b) Operating lease (written down value) 4,04,32,359 

(ii) Stock on hire including hire charges under sundry debtors: 

(a) Assets on hire — 

(b) Repossessed Assets — 

(iii) Other Loans counting towards AFC activities 

(a) Loans where assets have been repossessed — 

(b) Loans other than (a) above — 

(4) Break-up of Investments : 

Current Investments : 

1 Quoted : 

(i) Shares : (a) Equity — 

(b) Preference — 

(ii) Debentures and Bonds — 

(iii) Units of mutual funds — 

(iv) Government Securities — 

(v) Others (please specify) — 

2 Unquoted : 

(i) Shares : (a) Equity 



(iii) Units of mutual funds 228,800,360 



Long Term investments : 

Long Term investments : 

1 Quoted : 

(i) Shares : (a) Equity 210,602 

(b) Preference 





2 Unquoted : 

(i) Shares : (a) Equity 117,500 






168

SAMR 


TRADING AND 


(5) Borrower group-wise classification of all assets, financed as in (2), and (3), above: (Please see Note 2) 

Category 

Amount net of provisions 

Secured Unsecured Total 

1. Related Parties ** 

(a) Subsidiaries — — — 

(b) Companies in the same group — — — 

(c) Other related parties — — — 

2. Other than related parties — — — 

Total — — — 

(6) Investor group-wise classification of all investments (current and long term) in shares and securities (both quoted and unquoted): (Please see 

note 3) 

Category Market Value / Break up or Book Value 

fair value or NAV 

(Net of Provisions) 

1. Related Parties ** 

(a) Subsidiaries — — 

(b) Companies in the same Group — — 

(c) Other related parties — — 

2. Other than related parties 22,91,53,814 22,91,28,462 

Total 22,91,53,814 22,91,28,462 

** As per Accounting Standard of ICAI (Please see Note 3) 

(7) Other information Amount 

(i) Gross Non-Performing Assets 

(a) Related parties — 

(b) Other than related parties — 

(ii) Net Non-Performing Assets 

(a) Related parties — 

(b) Other than related parties — 

(iii) Assets acquired in satisfaction of debt — 

Notes: 

1 As defined in Paragraph 2(1)(xii) of the Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998. 

2 Provisioning norms shall be applicable as prescribed in Non-Banking Financial (Non Deposit Accepting or Holding) Companies Prudential Norms 

(Reserve Bank) Directions, 2007. 

3 All Accounting Standards and Guidance Notes issued by ICAI are applicable including for valuation of investments and other assets as also assets 

acquired in satisfaction of debt. However, market value in respect of quoted investments and break up/fair value/NAV in respect of unquoted 

investments should be disclosed irrespective of whether they are classified as long term or current in (4) above. 

169 ⊳

SAMR 


TRADING AND 


CASH SH FLOW W STATEMENT TEMENT FOR THE YEAR ENDED 31ST T MARCH, 2011 

`. in Thousand 

For the year ended 


31st March, 2011 31st March, 2010 

A. Cash Flow w from Operating Activities 

a. Net profit before tax and exceptional item 16,839.99 36,419.56 

Depreciation 2,128.02 2,240.02 

Interest Income (42.06) (249.51) 

Dividend Income (8,223.32) (30,552.26) 

(Profit)/Loss on Sale of Mutual Funds (514.26) - 

b. Operating profit before working capital changes 10,188.37 7,857.81 

Adjustment for: 

Trade and other receivables (1.68) 5.20 

Increase in Loans & Advances 298.48 - 

Trade Payables 2,385.38 2,580.13 

c. Cash generated from Operations 12,870.55 10,443.14 

Direct taxes paid (Net) (2,455.83) (3,111.43) 

Net Cash from Operating Activities before exceptional items 10,41 

0,414.72 

4.72 7,331 

,331.71 

B. Cash Flow from Investing 

Activities 

Purchases of Investments (593,274.28) (209,720.01) 

Sale of Investments 573,983.33 1,720,433.98 

Interest received 42.06 249.51 

Dividend received 8,223.32 30,552.26 

Profit/(Loss) on Sale of Mutual Funds 514.26 

Net Cash from/ (used) in investing 

Activities 

(10,51 

0,511.31) 

1,541,515.7 

5.74 

C. Cash Flow from Financing Activities 

Proceeds from Borrowings - 

Repayment of borrowings (1,548,909.75) 

Net Cash from/ (used in) Financing Activities 

- (1,548,909.75) 

D. Net increase/(decrease) in Cash & Cash equivalents 

(96.59) (62.30) 

Cash & Cash equivalents at beginning of the year 166.34 

228.64 

Cash & Cash equivalents at end of the year 69.75 166.34 

(Cash and cash equivalents represent Cash and Bank Balance) 

Note: Previous year figures have been regrouped/recast whereever necessary. 


For 

AMRITLAL H. JAIN & CO., 

for SAMRUDDHI SWASTIK TRADING AND INVESTMENTS LIMITED 



G.K. Tulsian 

Partner 




170

SAMR 


TRADING AND 


Additional Information under Part IV of Schedule 

VI to the Companies Act, 1956 




Company Identity No. U 6 7 1 2 0 M P 1 9 9 4 P L C 0 0 8 4 4 7 



Public Issue 

Rights Issue 

N I L N I L 

Bonus Issue 


N I L N I L 



Total Assets 

2 6 0 7 3 3 2 6 0 7 3 3 




6 5 0 0 0 1 9 5 7 3 3 

Secured Loans 


N I L N I L 



Investments 

4 0 4 3 2 2 2 9 1 2 9 



(-) 8 8 2 8 0 0 


N I L 


Turnover 


1 9 1 2 1 2 2 8 1 


(+) 1 6 8 4 0 (+) 1 4 3 8 4 


2 . 2 1 N I L 




a) Item Code No. N A 

Product Description N A 

b) Item Code No. N A 


c) Item Code No. N A 


171 ⊳

SUN GOD TRADING AND INVESTMENTS LIMITED 

DIRECTOR 

ORS’ REPORT 

TO THE MEMBERS 

Your Directors have pleasure in presenting the Seventeeth 

Annual Report of your Company together with the Audited 

Accounts for the year ended 31st March, 2011. 

During the year under review the financial results of the 

Company show a Loss of Rs.3,925/- (previous year Profit of 

Rs.15,603/- ) after meeting all expenses. 

DIVIDEND 

With a view to conserve resources, your Directors do not 

consider it appropriate to recommend dividend on equity 

shares for the Financial Year ended 31st March, 2011. 

DIRECTOR 

Shri Adesh Gupta retire from office by rotation at the ensuing 

Annual General Meeting and being eligible, offer himself for 

re-appointment. 

DIRECTOR 


TEMENT 

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; 

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. 

AUDI 

UDITOR 

ORS 

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 

Messers Amritlal H. Jain & Co., Chartered Accountants, the 

Auditors of the Company, retire at the ensuing Annual General 

Meeting and being eligible offer themselves for reappointment. 

PAR 

ARTICULAR 


The Company had no employee in the Category specified 

Under Section 217 (2A) of the Companies Act, 1956. 


GY, 

TECHNOLOGY 

ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND 

OUTGO 

In view of the nature of operations, we have nothing to 

report on these matters. 

ii) 

accounting policies have been selected and applied 

consistently and the judgements 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; 

Mumbai 


On behalf of the Board 

G.K. Tulsian 


Adesh Gupta 

Directors 

172


AUDI 

UDITOR 

OR’S REPORT 

TO THE MEMBERS OF SUN GOD TRADING AND 


1. We have audited the attached Balance Sheet of Sun God 

Trading and Investments Limited as at 31st March, 2011 

and the annexed Profit and Loss Account of the Company 

for the year ended on that date. 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 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 mis-statements. An audit 

includes examining, on a test basis, evidence supporting 

the amounts and disclosures in financial statements. An 

audit also includes assessing the accounting principles 

used and significant estimates made by the management, 

as well as evaluating the overall financial statement 

presentation. We believe that our audit provides a 


3. As required 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, 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 that :- 

(a) We have obtained all the information and explanations 

which to the best of our knowledge and belief were 

necessary for the purpose 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 such books; 

(c) The Balance Sheet and Profit and Loss Account dealt 

with by this Report are in agreement with the books 

of account. 

(d) In our opinion, the Balance Sheet and the Profit and 

Loss Account dealt with by this report are in the 

compliance with the Accounting Standards referred in 

sub-section 3 (c) of Section 211 of the Companies 

Act, 1956 to the extent applicable; 

(e) In our opinion, and based on information and 

explanations given to us, none of the directors are 

disqualified as on 31st March, 2011 from being 

appointed as directors in terms of clause (g) of subsection 

(i) of section 274 of the Companies Act, 1956. 

(f) In our opinion and to the best of our information and 

according to the explanations given to us, the said 

Balance Sheet and the Profit and Loss Account read 

together with the Notes thereon give information 

required by the Companies Act, 1956 in the manner 

so required and give a true and fair veiw: 

(i) In the case of the Balance Sheet, of the State of 

Affairs of the Company as at 31st March, 2011. 

(ii) In the case of the Profit and Loss Account, of the 

Loss of the Company for the year ended on that 

date. 

(iii) In the case of Cash Flow Statement, of the Cash 

Flow for the year ended on that date. 

Ujjain 


for 

AMRITLAL H. JAIN & CO. 


Amritlal H. Jain, 

Partner 

ANNEXURE REFERRED TO IN PARA 

ARAGRAPH 3 OF OUR 

REPORT OF EVEN DATE ON THE ACCO 

CCOUNTS OF SUN 

GOD TRADING AND INVESTMENTS LTD 

TD. . FOR THE YEAR 

ENDED ON MARCH 31ST, , 2011 

1. There are no amounts in respect of Income-tax/Wealthtax 

and other statutory dues which have not been 

deposited with the appropriate authorites on account of 

any dispute. 

2. The Company has no accumulated losses. The company 

has incurred cash losses in the financial year under 

report and in the immediately preceding financial year 

no cash losses were incurred. 

3 In our opinion and according to the information and 

explanations given to us and due to the nature of the 

Company’s business / activities during the year the clasues 

(i) to (viii), (ix) to (xiii) and (xv) to (xxi)of paragraph 4 & 5 

of the Companies (Auditor’s Report ) Order,2003 are not 

applicable to the company. 

For AMRITLAL H. JAIN & CO. 


Ujjain 



Partner 

173 ⊳


BALANCE SHEET AS AT 31ST MARCH, 2011 

` in Thousand 

As at 31st 

As at 31st 


SOURCES OF FUNDS 


Share Capital 

Authorised : 

49,000 Equity Shares of Rs. 10 each 490.00 490.00 

100 15% Redeemable Cumulative 10.00 10.00 

Preference Shares of Rs 100 each 

500.00 500.00 

Issued and Subscribed and Paid up: 

49,000 Equity Shares of Rs. 10 each 490.00 490.00 

(49,000 Shares held by Grasim Industries Limited.) 

100 15% Redeemable Cumulative 10.00 10.00 

Preference Shares of Rs 100 each 

(100 Shares held by Grasim Industries Limited.) 500.00 500.00 

Profit and Loss Account 

Opening Balance 7.51 (8.09) 

Add: Additions during the year (3.93) 15.60 

3.58 7.51 

TOTAL 

503.58 507.51 


Investments (At Cost) 

Unquoted - Fully Paid 

7,000 Equity Shares of Birla Management 

Centre Services Ltd.of Rs.10/- each 70.00 70.00 

300 Preference Shares in Birla Management 

Centre Services Ltd.of Rs.10/- each 3.00 3.00 

73.00 73.00 

Current Assets, Loans and Advances 

Balances with Scheduled Banks : 

Fixed Deposit Account 425.00 400.00 

Interest Accrued on Fixed Deposit Account 5.62 26.82 

Current Accounts 13.13 14.93 

Less: 

Current Liabilities & Provisions 


Provision for Income Tax (Net of TDS) 5.67 2.24 

Net Current Assets 430.58 434.51 

TOTAL 

503.58 507.51 


Sch. ‘A’ 


erred red to above form an integral part of the Balance Sheet 


For 

AMRITLAL H. JAIN & CO., 

for SUN GOD TRADING AND INVESTMENTS LIMITED 


G.K. Tulsian 



Partner 

Adesh Gupta 

Directors 

UJJAIN 


174


PROFI 


CCOUNT FOR THE YEAR ENDED 31ST MARCH, 2011 

INCOME 

` in Thousand 

For the year 

For the year 

ended 31st 

ended 31st 


Interest Income (Tax Deducted at Source ` 2.73 Thousand, 27.22 31.55 

Previous Year ` 4.73 Thousand) 

27.22 31.55 

EXPENDITURE 

Audit Fee 5.00 5.00 


Misc.Expenses 7.15 3.15 

19.96 8.97 

Profit before 

Tax 

7.26 

22.58 

Provision for Current Tax 8.41 6.98 

Provision for tax for earlier years 2.77 - 

Profit after 

Tax 

(3.93) 15.60 

Balance brought forward from previous year 7.51 (8.09) 

Balance Carried ried to Balance Sheet 3.58 7.51 


Sch. ‘A’ 


erred red to above form an integral part of the Profit and Loss 

Account 





Partner 

UJJAIN 



G.K. Tulsian 


Adesh Gupta 

Directors 

175 ⊳


SCHEDULE ‘A’ 


1. Significant Accounting Policies 

i) Revenues are accounted for on accrual basis. Dividend income on investments is accounted for when the right 

to receive the payment is established. Interest income is recognised on time proportion basis. 

2. Additional information required under Paragraphs 4C and 4D of Part II of Schedule VI to the Companies Act, 1956:- Nil 

3. The Company has not paid dividend on 15% Redeemable Cumulative Preference Shares amounting to Rs. 1500/- 

(Previous year Rs. 1500/-), cumulative dividend Rs. 15605/- (Previous year Rs. 14105/-) 

4. As per AS 18 issued by the Institute of Chartered Accountants of India, the related parties are as under: 

a) Holding Company - Grasim Industries Ltd. 

b) Fellow subsidiaries: 


2 Samruddhi Swastik Trading and Investments Ltd 

3 Grasim Bhiwani Textiles Ltd. 

4 Samruddhi Cement Limited 

5 Dakshin Cement Limited 

6 UltraTech Cement Lanka Private Limited 


8 UltraTech Cement Middle East Investment Ltd 

9 Star Cement Co LLC, Dubai UAE 

10 Star Cement Co LLC, RAK, UAE 

11 Al Nakhla Crusher, LLC, Fujairah, UAE 

12 Arabian Cement Industry LLC, Abu Dhabi, UAE 

13 Arabian Gulf Cement Co WLL, Bahrain 

14 Emirates Power Company Ltd., Bangladesh 

15 Emirates Cement Bangladesh Ltd., Bangladesh 

5. All the Amounts have been rounded off to Rupees Thousand with Hundreds in Decimals. 




Partner 

UJJAIN 



G.K. Tulsian 


Adesh Gupta 

Directors 

176


CASH FLOW STATEMENT TEMENT FOR THE YEAR ENDED 31ST MARCH, 2011 


` in Thousand 



31st March, 2011 31st March, 2010 

a. Net profit before tax and exceptional item 7.26 22.58 

b. Operating profit before working capital changes 7.26 22.58 

Adjustment for: 

Trade Payables 2.50 (0.52) 

c. Cash generated from Operations 9.76 22.06 

Direct taxes paid (Net) (7.76) (4.73) 

Net Cash from Operating Activities 

2.00 17.33 

B. Cash Flow from Investing 

Activities 

Net Cash from Investing 

Activities 

- - 

C. Cash Flow from Financing Activities 

Net Cash from Financing Activities 

- - 

D. Net Increase/(Decrease) in Cash & Cash equivalents 

2.00 17.33 

Cash & Cash equivalents at beginning of the year 441.75 

424.42 

Cash & Cash equivalents at end of the year 443.75 441.75 

(Cash and cash equivalents represent Cash and Bank Balances) 

Note: Previous year figures have been regrouped/recast whereever necessary. 





Partner 

UJJAIN 



G.K. Tulsian 


Adesh Gupta 

Directors 

177 ⊳


Additional Information under Part IV of Schedule 

VI to the Companies Act, 1956 




Company Identity No. U 6 7 1 2 0 M P 1 9 9 4 P L C 0 0 8 4 4 6 



Public Issue 

Rights Issue 

N I L N I L 

Bonus Issue 


N I L N I L 



Total Assets 

5 0 4 5 0 4 




5 0 0 4 

Secured Loans 


N I L N I L 



Investments 

N I L 7 3 



4 3 1 N I L 


N I L 


Turnover 


2 7 2 0 


(+) 7 (+) 4 


0 . 0 8 N I L 




a ) Item Code No. N A 


b) Item Code No. N A 


c ) Item Code No. N A 


178

Infomedia 18 Limited

2010-11 - Grasim

Create successful ePaper yourself

Delete template?

Save as template?