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

We live by their values.

Integrity, Commitment, Passion, Seamlessness and Speed
Infomedia India Limited
CMYK

UltraTech Cement Limited

BOARD OF DIRECTORS Executives

Kumar Mangalam Birla O. P. Puranmalka Group Executive President &
Chairman Chief Marketing Officer

Mrs. Rajashree Birla S. K. Maheshwari Group Executive President &

Chief Manufacturing Officer
R. C. Bhargava
C. B. Tiwari Chief People Officer
G. M. Dave

Y. M. Deosthalee
Unit Heads
N. J. Jhaveri
K. Y. P. Kulkarni Kovaya & Jafrabad (Gujarat)
Dr. S. Misra S. Kumar Hirmi (Chhattisgarh)
P. S. Mazumdar Tadipatri (Andhra Pradesh)
V. T. Moorthy
B. Singh Awarpur (Maharashtra)
J. P. Nayak

S. Rajgopal
Corporate Finance Division
D. D. Rathi J. Bajaj Joint President (Finance)
M. B. Agarwal Sr. Vice President (F&C)
S. Misra
Managing Director

Chief Financial Officer Auditors

K. C. Birla Deloitte Haskins & Sells, Chartered Accountants, Mumbai
G. P. Kapadia & Co., Chartered Accountants, Mumbai

Company Secretary Solicitors

S. K. Chatterjee Amarchand & Mangaldas & Suresh A. Shroff & Co.,
Advocates & Solicitors, Mumbai
CMYK

Co n t e n t s

The Chairman’s Letter to Shareholders ...................... 3

Notice ........................................................................... 8
Financial Highlights .................................................... 14
Management Discussion and Analysis ....................... 16
Report on Corporate Governance ............................... 24

Shareholder Information .............................................. 37

Social Report ................................................................ 47
Environment Report .................................................... 50
Directors’ Report to the Shareholders ........................ 52
Auditors’ Report .......................................................... 63
Balance Sheet ............................................................... 68
Profit and Loss Account .............................................. 69
Cash Flow Statement ................................................... 70
Schedules ...................................................................... 71

Statement Relating to Subsidiary Companies ............ 94

Consolidated Financial Statements ............................. 95
Subsidiary Companies Reports and Accounts ........... 114

REGISTERED OFFICE: ‘B’ Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093

Tel. : (022) 6691 7800 Fax : (022) 6692 8109. Website : www.ultratechcement.com/www.adityabirla.com
CMYK

T HE CHAIRMAN’S
LETTER TO
S HAR E HOL D ERS
Dear Fellow Shareholders,

India continues on its growth trajectory. Since

the year 2003-04, our GDP growth has
exceeded 8% year on year. Today we can
take justifiable pride in having joined the
ranks of the US$ trillion economies of the
world. I do believe India will continue its
momentum despite some strong headwinds.
For instance inflation – where the
Government is trying to pull out all stops to
stem it. Additionally we have to contend with
the hardening interest rates and the volatility
in global financial markets, consequent to
the sub prime crises.

That despite these adverse factors enveloping

the business environment, India continues to
grow is a validation of the inherent
fundamental strengths of our economy.

The Indian cement industry - the second

largest cement producer in the world, has a
capacity of around 195 MTPA. The industry
has been witnessing over 95% capacity
utilisation during the last couple of years, as
compared to 80 – 90 % earlier. An additional
capacity of around 115 MTPA has been
planned, which is likely to be on stream by 2012.

3
CMYK

The per capita consumption of cement at 135 kgs is one of the lowest, when compared with
the levels in other rapidly growing economies, offering scope for future growth. This, together
with the Government’s thrust on infrastructure growth bodes well for your Company.

Your Company’s performance in FY08 has been impressive. Net Revenues at US$ 1,368 million
(Rs. 5,509 crores) was up by 26%, while Net Profit of US$ 250 million (Rs. 1,008 crores)
reflected a growth of 45%.

Your Company has initiated various expansion and modernisation programs to grow in the
markets in which it operates. Continuous efforts are also on to improve productivity and cost
efficiencies. The Clinkerisation unit at Andhra Pradesh Cement Works has been commissioned.
Trials have begun on the 1st Stream of the TPP of 23MW at Gujarat Cement Works and all the
four Streams aggregating 92MW will be fully operational during the year. The work relating
to setting up of the split grinding Unit at Ginigera in Karnataka and thermal power plants at
various locations across your Company is progressing satisfactorily. A capex of around
Rs. 3,300 crores is committed towards these programs and on completion they will result in
sustaining growth and reducing costs.

“I believe our people – our With an eye on value added growth, your Company
human capital is our has set up 15 Ready Mix Concrete Plants in FY08.
key resource and we owe a More such Plants are in the pipeline.

large part of our success to them. New capacity announcements may lead to a surplus
We have thought leaders scenario from the next calendar year, resulting in a
across the Company. challenging price environment. Your Company will
A majority of our people tap focus on sustaining plant performance, optimise

into each others knowledge-base efficiencies and improve service standards.

and collaborate effectively to I believe our people – our human capital is our key
achieve a shared vision.” resource and we owe a large part of our success to them.

4
CMYK

We have thought leaders across the Company. A majority of our people tap into each others
knowledge-base and collaborate effectively to achieve a shared vision.

The Aditya Birla Group: In Perspective

We are moving in sync with our vision to be a premium global conglomerate with a clear
focus at each business level. Our Group is now a US$ 28 billion meritocratic Corporation,
with a market cap in excess of US$ 31.5 billion with a 100,000 strong human capital belonging
to 25 nationalities, spanning 20 countries across 5 continents. Our values – Integrity,
Commitment, Passion, Seamlessness and Speed bind us all together regardless of geographies
and nationalities.

Our HR strategy ongoingly focuses on enhancing “Apart from trust and

stakeholder value through superior organisation and admiration for the Group as
people capability. Today, more than ever before, a professional values-driven
talent is at a premium, thanks to globalisation and
organisation, what also
the multi-polar world, both of which afford unique
emerged strikingly was the
opportunities. At our Group attracting the best talent
fact of our diversity – the
and engaging them continues to be a key priority.
number of countries and
We have made huge investments in not only
attracting but developing and retaining our human
businesses in which we are

capital over the long term. engaged, that is an enduring

characteristic of our Group.
To arrive at an employee proposition that would
We have therefore
draw more talent to our Group, we conducted an
positioned ourselves as an
indepth research aimed at finding out what is our
DNA as an employer and what does our employer
employer that offers

brand connote. Apart from trust and admiration for “a world of opportunities”,

the Group as a professional values-driven other factors being a given

organisation, what also emerged strikingly was the in our case.”

5
CMYK

fact of our diversity – the number of countries and businesses in which we are engaged, that is
an enduring characteristic of our Group.

We have therefore positioned ourselves as an employer that offers “a world of opportunities”,

other factors being a given in our case. I am happy to share with you that our employer brand
has attracted more than 50 top-notch professionals from India and across the globe. To provide
cross-functional, cross-cultural and cross-country agility and learnings, as well as to strengthen
our leadership pipeline, more than 100 colleagues from middle management to senior
management have been job-rotated.

A Performance Management Centre at our Group’s Headquarters has been set up with dedicated
resources to sharpen our high performance culture. This team’s sole responsibility is to assist
in Institutionalising world-class performance framework
“Going forward in the and leadership processes.
next five years, I see our
As in the past our high-calibre Management talent have
workforce mix expanding to been put through our Development Assessment Centres
over 100 nationalities and and their professional development plans drawn up.
our senior management Gyanodaya, our Institute of Management Learning
team becoming even more continues to provide a good base for new learnings for

global. I visualise a multi- our people, and honing competencies. Up until now

generational workforce able more than 4,500 colleagues have participated in its
programmes.
to overcome generational
barriers, and effectively, We had said last year that we would introduce ESOP

feeding on each one’s core schemes during the course of the year.
In this year, we covered 700 employees under ESOP
offerings of experience,
schemes, a significant move, for the first time in the
raw energy, risk taking and
history of our Group. And, we will cover many more
organisational knowledge.”
from now on.

6
CMYK

Going forward in the next five years, I see our workforce mix expanding to over 100 nationalities
and our senior management team becoming even more global. I visualise a multi-generational
workforce able to overcome generational barriers, and effectively, feeding on each one’s core
offerings of experience, raw energy, risk taking and organisational knowledge. Enhancing our
attractiveness as an employer also calls for creating a workspace that accepts and encourages
the existence of a sharp sense of individual identity, even within the strong organisational
brand and cultural fabric. We want to create top-notch leaders on virtually an assembly-line
scale. And lastly, we want to be in that enviable position where the best talent globally wants
to join us, just as much as we seek them.

Best regards,
Yours sincerely,

22nd April, 2008 Kumar Mangalam Birla

7
CMYK

NOTICE

NO T I C E
NOTICE is hereby given that the Eighth Annual General Meeting of UltraTech Cement
Limited will be held at Ravindra Natya Mandir, P. L. Deshpande Maharashtra Kala Academy,
Near Siddhivinayak Temple, Sayani Road, Prabhadevi, Mumbai – 400 025 on Friday,
18th July, 2008 at 3:30 p.m. to transact, with or without modification(s), as may be permissible,
the following business:
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2008 and the
Profit & Loss Account for the year ended 31st March, 2008 and the Report of the Directors’
and Auditors’ thereon.
2. To declare dividend on Equity Shares for the year ended 31st March, 2008.
3. To appoint a Director in place of Mrs. Rajashree Birla, who retires by rotation and, being
eligible, offers herself for re-appointment.
4. To appoint a Director in place of Mr. V. T. Moorthy, who retires by rotation and, being
eligible, offers himself for re-appointment.
5. To appoint a Director in place of Mr. R. C. Bhargava, who retires by rotation and, being
eligible, offers himself for re-appointment.
6. To consider and if thought fit, to pass, the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 224 and other applicable
provisions, if any, of the Companies Act, 1956, M/s. Deloitte Haskins & Sells, Chartered
Accountants, Mumbai and M/s. G. P. Kapadia & Co., Chartered Accountants, Mumbai be
and are hereby re-appointed Joint Statutory Auditors of the Company, to hold office from
the conclusion of the Eighth Annual General Meeting until the conclusion of the next
Annual General Meeting at such remuneration to each of them, plus service tax as applicable
and reimbursement of out-of-pocket expenses in connection with the audit as the Board of
Directors may fix in this behalf.”
SPECIAL BUSINESS:
7. To consider and if thought fit, to pass, the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 228 and other applicable
provisions, if any, of the Companies Act, 1956 (the “Act”) M/s. Haribhakti & Co., Chartered
Accountants, Mumbai, be and are hereby re-appointed Branch Auditors of the Company,
to audit the Accounts in respect of the Company’s Units at Jafrabad and Magdalla in
Gujarat and Ratnagiri in Maharashtra, to hold office from the conclusion of the Eighth
Annual General Meeting until the conclusion of the next Annual General Meeting of the
Company at such remuneration, plus service tax as applicable and reimbursement of

8
CMYK

out-of-pocket expenses in connection with the audit as the Board of Directors may fix in
this behalf.
RESOLVED FURTHER THAT the Board be and is hereby authorised to appoint Branch
Auditors of any other Branch / Unit / Division of the Company, which may be opened /
acquired / installed hereafter, in India or abroad, in consultation with the Company’s
Statutory Auditors, any person(s) qualified to act as Branch Auditor within the provisions
of Section 228 of the Act and to fix their remuneration.”
8. To consider and if thought fit, to pass, the following resolution as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 260 and other applicable
provisions, if any, of the Companies Act, 1956 (the “Act”) Mr. S. Rajgopal, who was
appointed as an Additional Director by the Board of Directors of the Company and who
holds office as such only up to the date of this Annual General Meeting and in respect of
whom the Company has received a notice in writing along with a deposit of Rs. 500/-
pursuant to the provisions of Section 257 of the Act from a Member signifying his intention
to propose Mr. S. Rajgopal as a candidate for the office of Director of the Company, be
and is hereby appointed as a Director of the Company liable to retire by rotation.”

By Order of the Board

S. K. Chatterjee
Company Secretary
Place: Mumbai
Date: 22nd April, 2008

NOTES:
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE EIGHTH ANNUAL
GENERAL MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND AND
VOTE INSTEAD OF HIMSELF/HERSELF AND THE PROXY NEED NOT BE A
MEMBER OF THE COMPANY. THE INSTRUMENT APPOINTING A PROXY
SHOULD HOWEVER BE DEPOSITED AT THE REGISTERED OFFICE OF THE
COMPANY NOT LESS THAN FORTYEIGHT HOURS BEFORE THE
COMMENCEMENT OF THE MEETING.
2. An Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 in
respect of item nos. 7 and 8 of the Notice set out above, is annexed hereto.
3. The Register of Members and Share Transfer Books of the Company will remain closed
from 11th July, 2008 to 18th July, 2008 (both days inclusive) for the purpose of payment of
dividend, if any, approved by the Members.

9
CMYK

4. The dividend, as recommended by the Board, if approved at the Annual General Meeting,
will be paid on or after 18th July, 2008 to those Members or their mandates whose names
are registered on the Company’s Register of Members:
a) as Beneficial Owners as at the end of business on 10th July, 2008 as per the lists to be
furnished by National Securities Depository Limited (NSDL) and Central Depository
Services (India) Limited (CDSL) in respect of the shares held in electronic form, and
b) as Members in the Register of Members of the Company after giving effect to all valid
share transfers in physical form which are lodged with the Company or its Registrar &
Transfer Agent (RTA) viz. Sharepro Services (India) Private Limited having their
address at Satam Estate, 3rd Floor, Above Bank of Baroda, Cardinal Gracious Road,
Chakala, Andheri (East), Mumbai - 400 099 on or before 10th July, 2008.
5. a) Members are requested to notify immediately any change of address:
(i) to their Depository Participants (DPs) in respect of the shares held in electronic
form, and
(ii) to the Company or to its RTA in respect of the shares held in physical form
together with a proof of address viz. Electricity Bill, Telephone Bill, Ration Card,
Voter ID Card, Passport etc.
b) In case the mailing address mentioned on this Annual Report is without the PINCODE,
Members are requested to kindly inform their PINCODE immediately.
6. Non-resident Indian Members are requested to inform the Company or its RTA or to the
concerned DP, as the case may be, immediately:
(a) the change in the residential status on return to India for permanent settlement.
(b) the particulars of the NRE Account with a Bank in India, if not furnished earlier.
7. Members are requested to make all correspondence in connection with shares held by
them by addressing letters directly to the Company at its Registered Office or its RTA
quoting reference of their Folio number or their Client ID number with DP ID number, as
the case may be.
8. Members who are holding shares in identical order of names in more than one folio are
requested to send to the Company or its RTA, the details of such folios together with the
share certificates for consolidating their holdings in one folio. The share certificates will
be returned to the Members after making requisite changes thereon.
9. (a) Members are advised to avail of the facility for receipt of dividend through Electronic
Clearing Service (ECS). The ECS facility is available at specified locations. Members
holding shares in electronic form are requested to contact their respective DPs for
availing ECS facility. Members holding shares in physical form are requested to
download the ECS form from the website of the Company viz.
www.ultratechcement.com and the same duly filled up and signed along with a
photocopy of a cancelled cheque may be sent to the Company at its Registered Office
or to its RTA on or before 10th July, 2008.

10
CMYK

(b) Members who hold shares in electronic form and want to change / correct the bank
account details should send the same immediately to their concerned DP and not to the
Company. Members are also requested to give the MICR Code of their bank to their
DPs. The Company will not entertain any direct request from such Members for
change of address, transposition of names, deletion of name of deceased joint holder
and change in the bank account details. The said details will be considered, as will be
furnished by NSDL/CDSL to the Company.
(c) To avoid the incidence of fraudulent encashment of dividend warrants, Members are
requested to intimate the Company under the signature of the Sole / First Joint holder,
the following information, so that the bank account number and name and address of
the Bank can be printed on the dividend warrants:
1) Name of Sole / First Joint holder and Folio number.
2) Particulars of bank account, viz.
i) Name of Bank
ii) Name of Branch
iii) Complete address of Bank with PINCODE
iv) Account type, whether Saving (SB) or Current Account (CA)
v) Bank Account Number
10. Depository System
The Company has entered into agreements with NSDL and CDSL. Members, therefore,
now have the option of holding and dealing in the shares of the Company in electronic
form through NSDL or CDSL.
The Depository System envisages the elimination of several problems involved in the
scrip-based system such as bad deliveries, fraudulent transfers, fake certificates, thefts in
postal transit, delay in transfers, mutilation of share certificates etc. Simultaneously,
Depository System offers several advantages like exemption from stamp duty, elimination
of concept of market lot, elimination of bad deliveries, reduction in transaction costs,
improved liquidity etc.
11. As per the provisions of the Companies Act, 1956, facility for making nominations is now
available to INDIVIDUALS holding shares in the Company. The Nomination Form 2B
prescribed by the Government can be obtained from the Company’s Secretarial Department
at its Registered Office or its RTA or can be downloaded from its website viz.
www.ultratechcement.com.
12. Disclosure pursuant to Clause 49 of the Listing Agreement with respect to the Directors
seeking re-appointment/appointment at the forthcoming Annual General Meeting is attached
hereto.
13. The Annual Report of the Company for the year 2007-08, circulated to the Members of the
Company, will be made available on the Company’s website viz. www.ultratechcement.com.

11
CMYK

ANNEXURE TO THE NOTICE

Explanatory Statement Pursuant to Section 173(2) of the Companies Act, 1956:
Item No. 7
M/s. Haribhakti & Co., Chartered Accountants, Mumbai were appointed as Branch Auditors
of the Company’s Units at Jafrabad and Magdalla in Gujarat and Ratnagiri in Maharashtra at
its Seventh Annual General Meeting.
The Board of Directors of the Company have on the recommendation of the Audit Committee
proposed that M/s.Haribhakti & Co., Chartered Accountants, Mumbai be re-appointed as
Branch Auditors of the Company, to audit the Accounts of the Company’s Units at Jafrabad
and Magdalla in Gujarat and Ratnagiri in Maharashtra and to hold office from the conclusion
of this Meeting until the conclusion of the next Annual General Meeting.
Further, the Company may acquire new Units in India or abroad in future and it may be
necessary to appoint Branch Auditors for carrying out the audit of the accounts of such Units.
Your consent is being sought for authorising the Board to appoint Branch Auditors in respect
of such Units in consultation with the Statutory Auditors and to fix their remuneration.
The resolution as set out in Item no. 7 of this Notice is accordingly commended for your
acceptance.
None of the Directors of the Company is, in any way, concerned or interested in the said
resolution.
Item No. 8
Mr. S. Rajgopal, Nominee Director resigned from the Board of the Company with effect from
20th October, 2007 consequent to the withdrawal of his nomination by the Administrator of the
Specified Undertaking of the Unit Trust of India. Considering his vast knowledge and
experience, Mr. Rajgopal was appointed as an Additional Director with effect from that date to
hold office upto the conclusion of the ensuing Annual General Meeting. Mr. Rajgopal served
in the Indian Administrative Service and retired as Union Cabinet Secretary, Government of
India. He has been inducted on the Board of the Company as an Independent Director.
The resolution as set out in Item No. 8 of this Notice is accordingly commended for your
acceptance.
None of the Directors except Mr. S. Rajgopal is interested in the resolution.

By Order of the Board

S. K. Chatterjee
Company Secretary
Place: Mumbai
Date: 22nd April, 2008

12
CMYK
Disclosure pursuant to Clause 49 of Listing Agreement
Details of Directors seeking re-appointment / appointment at the Annual General Meeting to be held on 18th July, 2008:
Name of Director
Date of Birth
Date of Appointment
Expertise in specific general
functional area
Qualifications
List of outside Directorships
held (Public Limited Companies)
Chairman / Member of the
Committee of the Board of
Directors of the Company
Chairman / Member of the
Committee of Directors of
other Public Limited
Companies in which he / she
is a Director
a) Audit Committee
b) Shareholders’ Committee
Note: Pursuant to Clause 49 of the Listing Agreement, only two Committees, viz. Audit Committee and Shareholders’ Committee have been considered.
Mrs. Rajashree Birla
15th September, 1945
14th May, 2004
Industrialist
B.A.
1. Aditya Birla Health Services
Limited
2. Aditya Birla Nuvo Limited
3. Essel Mining & Industries
Limited
4. Grasim Industries Limited
5. Hindalco Industries Limited
6. Idea Cellular Limited
– –
– –
– –
Mr. V. T. Moorthy Mr. R. C. Bhargava Mr. S. Rajgopal
19th January, 1941 30th July, 1934 17th July, 1935
25th January, 2005 6th July, 2004 20th October, 2007
Business Executive General Management Civil Service
B.E. (Mechanical) M.Sc. (Maths), B.A. Hons (Mathematics),
M.A. (Dev. Economics) M.A. (History)
1. Tanfac Industries 1. Dabur India Limited 1. Larsen & Toubro Limited
Limited 2. Grasim Industries Limited
3. IL&FS Limited
4. Maruti Udyog Limited
5. Optimus Global
Services Limited
6. Polaris Software Lab Limited
7. Thomson Press Limited
1. Audit Committee - 1. Audit Committee –
Chairman Member
2. Share Transfer &
Shareholder / Investor
Grievance Committee –
Member
1. IL&FS Limited - Chairman –
2. Optimus Global Services
Limited - Chairman
3. Thomson Press
Limited - Chairman
4. Dabur India Limited -
Member
5. Grasim Industries
Limited - Member
6. Polaris Software Lab
Limited – Member
1. Maruti Udyog
Limited - Member –
13
CMYK

FINANCIAL HIGHLIGHTS
Particulars Units 2007-08 2006-07 2005-06 2004-05 2003-04
PRODUCTION (Quantity)
- Clinker Mn.T 14.35 14.22 12.73 12.36 12.12
- Cement Mn.T 15.07 14.64 13.33 12.11 11.79
SALES (Quantity)
- Clinker Mn.T 2.09 2.50 1.32 2.65 2.94
- Cement Mn.T 15.02 15.17 14.23 12.52 11.93

PROFIT & LOSS ACCOUNT

Gross Sales Rs.Crs 6,286.24 5,484.04 3,785.29 3,057.92 2,693.15
Excise duty Rs.Crs 777.02 573.52 485.84 451.02 442.02
Net Sales Rs.Crs 5,509.22 4,910.52 3,299.45 2,606.90 2,251.13
Operating Expenses Rs.Crs 3,789.16 3,492.71 2,745.19 2,256.07 1,931.99
Operating Profit Rs.Crs 1,720.06 1,417.81 554.26 350.83 319.14
Other Income Rs.Crs 99.85 61.46 37.00 21.07 59.59
EBITDA Rs.Crs 1,819.91 1,479.27 591.26 371.90 378.73
Depreciation / Amortisation Rs.Crs 237.23 226.25 216.03 221.78 214.52
EBIT Rs.Crs 1,582.68 1,253.02 375.23 150.12 164.21
Interest Rs.Crs 75.67 86.83 89.64 106.88 115.01
Profit before Exceptional items and Tax Rs.Crs 1,507.01 1,166.19 285.59 43.24 49.20
Exceptional items Gain / (Loss) Rs.Crs — — — (76.84) —
Profit after Exceptional items Rs.Crs 1,507.01 1,166.19 285.59 -33.60 49.20
Provision for Current Tax Rs.Crs 510.24 396.00 57.00 31.55 19.65
Provision for Deferred Tax Rs.Crs (16.71) (16.70) (4.75) (68.00) (9.28)
Fringe Benefit Tax Rs.Crs 5.87 4.61 3.58 — —
Net Earnings Rs.Crs 1,007.61 782.28 229.76 2.85 38.83
Cash Earnings before Exceptional items Rs.Crs 1,228.13 991.83 441.04 233.47 244.07
Dividend (incl. Dividend tax) Rs.Crs 72.82 56.77 24.85 10.66 7.02

BALANCE SHEET
Net Fixed Assets including CWIP Rs.Crs 4,783.61 3,214.23 2,678.20 2,597.08 2,751.96
Investments Rs.Crs 170.90 483.45 172.39 184.79 238.09
Current Assets Rs.Crs 1,303.89 960.17 772.52 837.65 739.58
Current Liabilities Rs.Crs 1,278.56 755.18 556.05 439.30 384.35
Net Current Assets Rs.Crs 25.33 204.99 216.47 398.35 355.23
Misc. Expenditure (Not written off) Rs.Crs — — — — 15.52
Capital Employed Rs.Crs 4,979.84 3,902.67 3,067.06 3,180.22 3,360.80
Net Worth represented by:-
Equity Share Capital Rs.Crs 124.49 124.49 124.49 124.40 124.40
Employee Stock Options Outstanding/
Share capital extinguished Rs.Crs 0.77 — — — 0.51
Reserves & Surplus Rs.Crs 2,571.73 1,639.29 913.78 942.73 950.54
Net Worth Rs.Crs 2,696.99 1,763.78 1,038.27 1,067.13 1,075.45
Loan Fund
Secured Loans Rs.Crs 982.66 1,151.25 1,221.93 1,253.35 1,245.01
Unsecured Loans Rs.Crs 757.84 427.38 229.90 278.03 390.63
Total Loan Funds Rs.Crs 1,740.50 1,578.63 1,451.83 1,531.38 1,635.64
Deferred Tax Liabilities Rs.Crs 542.35 560.26 576.96 581.71 649.71
Capital Employed Rs.Crs 4,979.84 3,902.67 3,067.06 3,180.22 3,360.80

RATIOS & STATISTICS

EBITDA Margin % 33 30 18 14 17
Net Margin % 18 16 7 0.1 2
Interest Cover (EBITDA/Interest) Times 24.05 17.04 6.60 3.48 3.29
ROCE (PBIT/Average Capital Employed) % 36 36 12 5 5
Current Ratio Times 1.02 1.27 1.39 1.91 1.92
Debt Equity Ratio Times 0.65 0.90 1.40 1.44 1.52
Dividend per share Rs./Share 5.00 4.00 1.75 0.75 0.50
Dividend Payout on Net Profit (Before exceptional items) % 7 7 11 13 18
EPS Rs./Share 80.94 62.84 18.46 0.23 3.12
Cash EPS before exceptional items Rs./Share 98.66 79.67 35.43 18.77 19.62
Book Value per share Rs./Share 216.65 141.69 83.40 85.78 86.45
No. of Equity Shares Nos. Crs. 12.45 12.45 12.45 12.44 12.44

14
CMYK

Net Sales Operating Profit

Rs. in Crores Rs. in Crores
6000 5,509 2100
4,911 1,720
5000 1700
1,418
4000
3,299 1300
3000 2,607
2,251 900
2000 554
500 319 351
1000
0 100
2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 2004-05 2005-06 2006-07 2007-08

Net Earnings Net Worth

Rs. in Crores Rs. in Crores

3000
1,008 2,697
1000
782
2500
800
2000 1,764
600

400 1500
1,075 1,067 1,038
230
200 1000
39 3
0 500
2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 2004-05 2005-06 2006-07 2007-08

EPS Dividend
Rupees Rs. per share
100 6.00
80.94 5.00
5.00
75 4.00
62.84
4.00
50 3.00

2.00 1.75
25 18.46
1.00 0.50
0.75
3.12 0.23
0 0.00
2003-04 2004-05 2005-06 2006-07 2007-08 2003-04 2004-05 2005-06 2006-07 2007-08

15
CMYK

MA N A G E M E N T DISCUSSION AND ANALYSIS

OVERVIEW

FY08 has closed under challenging circumstances. Rising level of inflation resulted in
Government intervention on prices of commodities, despite escalation of input costs and
taxes. It is hoped that investments in infrastructure and capacity expansion by the corporate
sector will help to sustain economic growth.

India is the second largest producer of cement in the world, with a capacity of around
195 MTPA. The cement sector is planning to increase capacity by 115 MTPA during the
11th Plan period at a capital outlay of approximately Rs.50,000 crores. This is likely to be
commissioned by FY12. Cement production grew from 156 MTPA to 168 MTPA in FY08,
registering a growth of 8%. Effective capacity utilisation in industry is over 95% after adjusting
for non-operating plants in the public sector. The per capita consumption of cement is estimated
to be 135 kgs which is significantly lower than levels achieved by rapidly developing economies,
with consequent scope for future growth.

The Indian cement industry is competitive, with imports possible only through the waiver of
countervailing duty, which provides an advantage to imports over domestic production.

Cement being an energy intensive industry needs quality power and fuel on a regular basis, at
economic prices. There is a continuous decline in the availability of linkage coal, with the
industry being compelled to access their requirements either through e-auction or imports,
with consequent increase in overall fuel costs. The industry is also setting up captive power
plants and increasing the use of alternative fuels and materials to optimise costs, while
simultaneously reducing their carbon footprint.

Your Company had announced expansion of capacity at Andhra Pradesh Cement Works (APCW)
along with a split grinding Unit at Ginigera, Karnataka to cater to the growing demand in
South India. The Clinkerisation (pyrosection) Unit was commissioned in March, 2008.
Satisfactory progress is being made on the remaining expansion work. The Unit will be
operational in the first half of the current fiscal. Your Company is also setting up captive
power plants at Awarpur Cement Works (ACW) in Maharashtra, Hirmi Cement Works (HCW)
in Chhattisgarh and Gujarat Cement Works (GCW) in Gujarat to reduce its power cost. These
power plants except ACW will be commissioned in a phased manner in FY09.
On commissioning, around 80% of your Company’s power requirement will be met from
captive sources.

16
CMYK

BUSINESS AND FINANCIAL PERFORMANCE REVIEW

Capacity Utilisation
FY08 FY07 % change
over FY07
Installed capacity (Mn.TPA):
Clinker 14.50 14.50 —
Cement 18.20 17.00 7
Production (Mn. Mt):
Clinker 14.35 14.22 1
Cement 15.07 14.64 3
– clinker capacity utilisation 99% 98%
– effective capacity utilisation@ 101% 101%
@ Effective capacity utilisation: cement production + clinker sold.
The capacity of the existing Units increased from 17.00 MMT to 18.20 MMT through
de-bottlenecking.
Sales Volume
FY08 FY07 % change
over FY07
Sales Volume (Mn. Mt):
Domestic – Cement 14.25* 13.35* 7
– Clinker 0.37 0.30 23
Total 14.62 13.65 7
Exports – Cement 0.73 1.26 -42
– Clinker 1.72 2.21 -22
Total 2.45 3.47 -29
Total Volume 17.07 17.12
* excluding trading sales of 0.04 in FY08 and 0.56 in FY07.
Overall volume remains flat, despite the disruption of operations due to floods at GCW.
Exports were curtailed to cater to the domestic market.
Sales Realisation (Net of Excise Duty)
FY08 FY07 % change
over FY07
Average Realisation (Rs./MT) 3,111 2,735 14
Domestic – Cement 3,322 2,970 12
Exports – Cement 2,503 2,435 3
– Clinker 1,901 1,630 17
Higher capacity utilisation and growing demand in Middle East and India resulted in improved
domestic and export realisation.

17
CMYK

Financial Highlights
(Rs. in crores)
FY08 FY07 % Change
Net Turnover 5,509 4,911 12
Domestic 5,005 4,242 18
Exports 504 669 -25
Other Income 100 61 64
Total Expenditure 3,789 3,493 8
Operating Profit (PBIDT) 1,820 1,479 23
Operating Margin (%) 33 30
Interest 76 87 -13
Gross Profit (PBDT) 1,744 1,392 25
Depreciation 237 226 5
Profit Before Tax 1,507 1,166 29
Current Tax 510 396 29
Deferred Tax (17) (17) —
Fringe Benefit Tax 6 5 20
Net Profit after Total Tax 1,008 782 29

Net Turnover
The increase in turnover is linked to higher domestic cement sales volume and improved
realisation in local and export markets. The Ready Mix Concrete (RMC) sales also rose to
Rs. 271 crores in FY08 compared with Rs. 43 crores in FY07.

Other Income
Other income has risen from Rs. 61 crores to Rs. 100 crores. Your Company earned
Rs. 30 crores on surplus money invested in various debt schemes of mutual funds and Rs. 70 crores
through other operational receipts like carbon credit, sales of scrap, exchange gain etc.

18
CMYK

Andhra Pradesh Cement Works

Operating Profit (PBIDT) and Margin

The operating profit was up by 23% from Rs. 1,479 crores in FY07 to Rs. 1,820 crores in
FY08. The PBIDT margins were at 33% in FY08 compared to 30% in FY07. The improved
profitability is due to better plant productivity and higher realisations. However, costs of raw
material, energy and freight rose sharply. Employee costs too witnessed a steep increase.
(i) Raw Material – The overall raw material cost per ton increased by 7% from Rs. 230 in
FY07 to Rs. 245 in FY08 on account of higher prices of all critical inputs viz. gypsum,
fly ash, iron ore and inward freight.
(ii) Energy – Energy cost per ton went up by 8% from Rs. 623 in FY07 to Rs. 670 in FY08
due to substantial hike in imported and indigenous coal prices. However, the power
consumption improved from 87 kwh per ton of cement in FY07 to 85 kwh per ton of
cement in FY08.
(iii) Employee costs increased on account of revision in compensation structure in line with
market, higher retiral dues on account of impact of revised AS15 and ramping up of
RMC business.
(iv) Freight and Handling expenses increased by 10% from Rs. 883 crores in FY07 to
Rs. 969 crores in FY08 mainly on account of two factors:
(i) higher volumes of RMC sales.
(ii) growth in domestic sales.
Average logistic cost increased from Rs. 585 pmt to Rs. 607 pmt.
Interest
The interest cost (gross) increased from Rs. 88 crores in FY07 to Rs. 92 crores in FY08 due to
higher borrowing cost. However, the net interest has seen a decline from Rs. 87 crores in
FY07 to Rs. 76 crores in FY08 due to interest capitalisation at Rs.16 crores in FY08 against
Rs.1 crore in FY07 on account of large ongoing capex.
Depreciation
Depreciation stepped up from Rs. 226 crores in FY07 to Rs. 237 crores in FY08 due to
addition in fixed assets of Rs. 227 crores for ongoing capex.

19
CMYK

Income Tax
The higher outgo in current tax resulted from improved earnings. Your Company also provided
Rs. 6 crores towards the Fringe Benefit Tax (FBT) in FY08 against Rs. 5 crores in FY07.
Net Profit
Net profit for FY08 stood at Rs. 1,008 crores compared to Rs. 782 crores in FY07.
Cash Flow Statement
(Rs. in crores)

FY08

Sources of Cash
Cash from operations 1,305
Non-operating cash flow 39
Decrease in working capital 70
Increase in borrowings 167
Net reduction in investments 312
Total 1,893

Uses of Cash
Net capital expenditure 1,793
Interest 89
Increase in cash and cash equivalent 11
Total 1,893

Sources of Cash
Cash from operations
The improved performance is reflected in the cash generation of your Company. Cash generation
was augmented from Rs. 1,037 crores in FY07 to Rs. 1,305 crores in FY08.
Non Operating Cash Flow
It consists of interest and dividend income earned on the temporary surplus funds invested and
Rs. 2.80 crores dividend received from its Joint Venture Company in Sri Lanka.

Decrease in Working Capital

The current assets have gone up from Rs. 856 crores in FY07 to Rs. 1,202 crores in FY08 due
to higher inventories of coal, stores and spares etc. by Rs. 176 crores. Receivables increased
by Rs. 35 crores and loans and advances increased by Rs. 135 crores due to higher CENVAT
receivables. At the same time, liabilities and provisions also increased by Rs. 416 crores due
to various ongoing capex. All of this has resulted in reduction of working capital by
Rs. 70 crores.

20
CMYK

Increase in Debts
Your Company raised Rs. 381 crores by borrowing in foreign currency and rupee loan for
capex and working capital requirements and repaid debentures and loans of Rs. 285 crores.
The sales tax loans increased by Rs. 71 crores.
Net decrease in Investments
The temporary surplus money invested in FY07 was utilised by your Company for its ongoing
capex, resulting in a reduction in investments of Rs. 312 crores.
Uses of Cash
Net Capital Expenditure
The capital expenditure of Rs. 1,793 crores was expended on capex plans such as the expansion
at APCW and installation of captive power plants at various locations.
Dividend
The Board has recommended a dividend of Rs. 5/- per equity share for FY08, entailing an
outflow of Rs. 73 crores including corporate tax on dividend of Rs. 11 crores. This accounts
for 7% of the net profits for the year under review. Your Company paid Rs. 4/- per equity
share as interim dividend for FY07, the total payout on which was Rs. 57 crores including
dividend tax of Rs. 7 crores.

CAPITAL EXPENDITURE PLAN

Your Company has initiated several capital expenditure proposals to continue to grow in the
markets in which it operates, improve productivity and cost efficiencies and address the
concern of rising power costs. A sum of around Rs. 3,300 crores had been earmarked towards
this, of which Rs.1,800 crores has already been spent in FY08. The expansion / modernisation
programs are progressing in line with expectation. Upon completion, they will result in sustaining
growth and reduce costs.

Overview of Thermal Power Plant at GCW

21
CMYK

Your Company recognises that RMC is the future of the Cement Business. During the year,
15 RMC Plants were set up across the country to cater to growing customer demand. More
RMC Plants are on the anvil.

CONSOLIDATED PERFORMANCE
(Rs. in crores)

FY08 FY07 % Change

Net Turnover 5,624 4,968 13
Operating Profit (PBIDT) 1,831 1,491 23
Interest 76 87 -13
Gross Profit (PBDT) 1,755 1,404 25
Depreciation & Amortisation of Goodwill 240 229 5
Profit Before Tax 1,515 1,175 29
Current Tax & Fringe Benefit Tax 519 404 28
Deferred Tax (15) (15) —
Net Profit before Minority interest 1,012 787 28
Minority Interest 2 2 —
Net Profit after Minority Interest 1,010 785 29

HUMAN RESOURCES
Your Company continues to maintain a constructive relationship with its employees through a
positive environment so as to improve productivity and efficiency.
Your Company also continues to invest in people process and skill development and provide
them with high performance environment.
Attrition in your Company is in line with industry but poses a big challenge. Schemes like
Performance Linked Variable Pay, Deferred Compensation and Employee Stock Options have
been introduced to attract and retain talent.
The Internal Recruitment Scheme serves as a platform for providing growth opportunities to
Managers within the business. This is part of your Company’s continuous effort towards
developing talent from within.
The total number of employees in your Company as on 31st March, 2008 was 3,989 (3,503
employees).
RISK MANAGEMENT
Both the economy and the industry are on a growth trajectory. However, spiraling prices and
availability of key inputs and raw material; delay in infrastructure development; availability of
skilled manpower; volatility in global economy are some of the major risks and concerns that
have to be addressed. All these have an impact on the operations of your Company.

22
CMYK

Your Company is conscious of the risks this entails and has put in place a mechanism for
minimising and mitigating the same. The process is reviewed periodically. A Risk Management
Committee at the Unit and Corporate Level reviews the risks periodically. The Audit Committee
also reviews the Risk Management Process.
Your Company recognises that risk management is an integral part of its business and an aid
for improvement and achieving targets.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY
Your Company has in place adequate internal control systems and procedures commensurate
with the size and nature of its business. The Internal Audit team continuously monitors the
effectiveness of internal control and provides a reasonable assurance of the adequacy and
effectiveness of your Company’s control, governance and risk management process to the
Audit Committee. It also follows up on the implementation of corrective actions and
improvements suggested by the Audit Committee.
Internal Audit focuses on the following objectives, forming part of the Audit Plan approved by
the Audit Committee:
• Adherence to the operating systems and manual;
• Performance of operational activities in an efficient and effective manner;
• Compliance with the risk management process;
• Compliance with legislative and regulatory provisions.
The Audit Committee reviews the Audit Reports and also has discussions with the Statutory
Auditors.

CONCLUSION
The demand for cement is expected to grow around 9% linked to GDP growth. At the same
time, new capacity announcements are likely to result in a surplus scenario, resulting in
pressure on domestic prices from CY09 onwards. The Government’s continued initiatives for
infrastructure development augurs well for the industry.
Against this background, your Company’s focus will be on sustaining plant performance,
improving service standards and timely commissioning of projects.

CAUTIONARY STATEMENT
Statement in this “Management Discussion and Analysis” describing the Company’s objectives, projections,
estimates, expectations or predictions may be “forward looking statements” within the meaning of applicable
securities laws and regulations. Actual results could differ materially from those expressed or implied. Important
factors that could make a difference to the Company’s operations include global and Indian demand supply
conditions, finished goods prices, feed stock availability and prices, cyclical demand and pricing in the Company’s
principal markets, changes in Government regulations, tax regimes, economic developments within India and
the countries within which the Company conducts business and other factors such as litigation and labour
negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent development, information or events or otherwise.

23
CMYK

NOTICE

RE P O R T O N C O R P O R A T E G O V E R N A N C E
COMPANY’S PHILOSOPHY ON CORPORATE GOVERNANCE
Corporate Governance refers to a set of laws, regulations and good practices that enable an
organisation to perform efficiently and ethically generate long term wealth and create value
for all its stakeholders. There is, however, no single template to define good governance.

Corporate Governance in the Aditya Birla Group is an evolutionary process. The governance
philosophy rests on the tenets listed below:

• Board accountability to Company and stakeholders;

• Equitable treatment of all shareholders;

• Strategic guidance and effective monitoring by the Board;

• Timely disclosure.

These are reflected in the Aditya Birla Group Values:

Integrity
Commitment
Passion
Seamlessness
Speed

UltraTech Cement Limited, (your Company) continuously strives for excellence through
adopting best governance and disclosure practices. In terms of Clause 49 of the Listing
Agreement executed with stock exchanges, the details of compliance are as follows:

24
CMYK

BOARD OF DIRECTORS
• Composition
Your Company’s Board comprises of 12 (twelve) Directors, which includes the Managing
Director and 4 (four) Independent Directors. The details of the Directors with regard to
outside directorships and committee positions are as follows:
Director Executive/ No. of outside No. of outside
Non – Executive/ directorship(s) committee position(s)
Independent1 held2 held3
Public Private Chairman Member
Kumar Mangalam Birla Non-Executive 10 12 - -

Mrs. Rajashree Birla Non-Executive 6 12 - -

R. C. Bhargava Independent 7 2 3 4

G. M. Dave Independent 7 1 - 5

Y. M. Deosthalee Non-Executive 10 - 4 1

N. J. Jhaveri Independent 13 2 5 5

Dr. S. Misra Non-Executive 3 1 - -

V. T. Moorthy Non-Executive 1 - - -

J. P. Nayak Non-Executive 9 - 5 1

S. Rajgopal4 Independent 1 1 - -

D. D. Rathi Non-Executive 7 1 - 1

S. Misra Managing
Director 2 1 - 1

1. Independent Director means a Director as defined under Clause 49 of the Listing Agreement.
2. Excluding Alternate directorships and directorships in foreign companies and companies under
Section 25 of the Companies Act, 1956. (“the Act”)
3. Only two committees viz. the Audit Committee and the Shareholders’ / Investors Grievance Committee
of all public limited companies are considered.
4. Mr. S. Rajgopal resigned as Nominee Director w.e.f. 20th October, 2007. He was appointed Additional
Director from that date.
5. No Director is related to any other Director on the Board, except for Mr. Kumar Mangalam Birla and
Mrs. Rajashree Birla, who are son & mother respectively.

25
CMYK

• Attendance of each Director at the Board meetings and the last Annual General
Meeting (AGM)
Director No. of Board meetings Attended last AGM@
Held Attended
Kumar Mangalam Birla 4 4 Yes
Mrs. Rajashree Birla 4 2 Yes
R. C. Bhargava 4 4 Yes
G. M. Dave 4 4 Yes
Y. M. Deosthalee 4 1 No
N. J. Jhaveri 4 4 Yes
Dr. S. Misra 4 4 Yes
V. T. Moorthy 4 4 Yes
J. P. Nayak 4 4 Yes
S. Rajgopal1 4 3 Yes
D. D. Rathi 4 4 Yes
S. Misra 4 4 Yes
@
Annual General Meeting (AGM) held on 20th July, 2007 at Ravindra Natya Mandir, P. L. Deshpande
Maharashtra Kala Academy, Near Siddhivinayak Temple, Sayani Road, Prabhadevi, Mumbai 400 025.
1. Mr. S. Rajgopal resigned as Nominee Director w.e.f. 20th October, 2007. He was appointed Additional
Director from that date.

• Number of Board meetings held, dates on which held and number of Directors present
Date of Board meetings City Board strength No. of
Directors present
21st April, 2007 Mumbai 12 11
20th July, 2007 Mumbai 12 11
20th October, 2007 Mumbai 12 10
19th January, 2008 Mumbai 12 10
The Board meets at least once a quarter to review the quarterly financial results and
operations of your Company. In addition to the above, the Board also meets as and when
necessary to address specific issues relating to the business of your Company.
Your Company’s Board plays a pivotal role in ensuring good governance and functioning
of your Company. The Board consists of professionals from diverse fields possessing vast
experience in their respective areas.

26
CMYK

The Board has unfettered and complete access to any information within your Company.
Members of the Board have complete freedom to express their views on agenda items and
can discuss any matter at the meeting with the permission of the Chairman. The Board
provides direction and exercises appropriate control to ensure that your Company is managed
in a manner that fulfils stakeholder’s aspirations and societal expectations.
The information placed before the Board includes:
— Annual operating plans, capital budgets and any updates.
— Quarterly financial results.
— Minutes of meetings of Audit Committee and other Committees of the Board.
— The information on recruitment and remuneration of Senior Officers just below the
Board level, including appointment or removal of the Chief Financial Officer and the
Company Secretary.
— Show cause, demand, prosecution notices and penalty notices which are materially
important.
— Fatal or serious accidents, dangerous occurrences, any material effluent or pollution
problems.
— Any material default in financial obligations to and by your Company, or substantial
non-payment for goods sold by your Company.
— Any issue, which involves possible public or product liability claims of substantial
nature, including any judgement or order, which may have passed strictures on the
conduct of your Company or taken an adverse view regarding another enterprise that
can have negative implications on your Company.
— Details of any joint venture or collaboration agreement.
— Transactions that involve substantial payment towards goodwill, brand equity or
intellectual property.
— Significant labour problems and their proposed solutions. Any significant development
in human resources / industrial relations front.
— Sale of material nature of investments, subsidiaries, assets, which is not in normal
course of business.
— Quarterly details of foreign exchange exposures and the steps taken by management to
limit the risks of adverse exchange rate movement, if material.
— Non-compliance of any regulatory, statutory or listing requirements and shareholders
service such as non-payment of dividend, delay in share transfer etc.
— Risk Management policies of your Company.

27
CMYK

• Remuneration of Directors and their shareholding in your Company

Details of sitting fees paid to Non-Executive Directors for attending Board meetings and
their shareholding in your Company:
Director Sitting fees paid (Rs.) No. of shares held
Kumar Mangalam Birla 80,000 400
Mrs. Rajashree Birla 40,000 400
R. C. Bhargava 80,000 —
G. M. Dave 80,000 —
Y. M. Deosthalee 20,000 1,773
N. J. Jhaveri 80,000 —
Dr. S. Misra 80,000 —
V. T. Moorthy 80,000 420
J. P. Nayak 80,000 1,276
S. Rajgopal 60,000 —
D. D. Rathi 80,000 —
S. Misra Nil 2
Apart from sitting fees that are paid to the Non-Executive Directors for attending Board /
Committee meetings, no other fees / commission were paid during the year. No significant
material transactions have been made with the Non-Executive Directors vis-à-vis your
Company.
The details of remuneration paid to the Managing Director are as follows:
Managing Relationship Remuneration paid during 2007-08
Director with other
Directors
All elements Performance Service Stock option
of remuneration linked contracts, details, if any
package i.e. incentives, notice
salary, benefits, alongwith period,
pensions etc. performance severance
criteria (a) fee
S. Misra – Rs. 3.56 crores Rs. 0.88 crores See note (b) See note (c)
(a) Mr. S. Misra was paid a sum of Rs. 0.88 crores towards performance incentive linked
for achievement of targets for the year 2006-07.
(b) Appointment of Mr. S. Misra as Managing Director is subject to termination by three
months notice in writing by either side.
(c) In terms of your Company’s Employee Stock Option Scheme (“ESOS-2006”),
84,290 stock options have been granted to Mr. S. Misra during the year.

28
CMYK

All decisions relating to the remuneration of the Managing Director is taken by the Board
in accordance with the approval received from the Members of your Company.
• Code of Conduct
The Board of Directors has laid down a Code of Conduct (“the Code”) for all Board
Members and Senior Management Personnel of your Company. The Code is posted on
your Company’s website www.ultratechcement.com
All Board Members and Senior Management Personnel have confirmed compliance with
the Code.
A declaration signed by the Managing Director is attached and forms part of the Annual
Report.

AUDIT COMMITTEE
• Composition
The Board has constituted an Audit Committee comprising of three Non-Executive
Independent Directors. All the Members of the Audit Committee are financially literate as
per the provisions of Clause 49 of the Listing Agreement.
Directors Chairman/Member
R. C. Bhargava Chairman
G. M. Dave Member
S. Rajgopal Member

Permanent Invitees
Mr. D. D. Rathi — Director of your Company and Whole-time Director & Chief
Financial Officer of Grasim Industries Limited, the holding company.
Mr. K. C. Birla — Chief Financial Officer of your Company.
The Statutory, Cost and Internal Auditors of your Company are also invited to the Audit
Committee meetings.
The Company Secretary acts as the Secretary to the Committee.
• Objective
To monitor and effectively supervise your Company’s financial reporting process with a
view to provide accurate, timely and proper disclosure and the integrity and quality of the
financial reporting.
• Powers
The Audit Committee has the following powers:
— To investigate any activity within its terms of reference.
— To seek information from any employee.

29
CMYK

— To obtain outside legal or other professional advice.

— To secure attendance of outsiders with relevant expertise, if it considers necessary.
• Role
1. Oversight of your Company’s financial reporting process and the disclosure of its
financial information to ensure that the financial statement is correct, sufficient and
credible.
2. Recommending to the Board, the appointment, re-appointment and, if required, the
replacement or removal of the Statutory Auditor and Cost Auditor and the fixation of
audit fees.
3. Approval of payment to Statutory Auditors for any other services rendered by them.
4. Reviewing with the management, the annual financial statements before submission to
the Board for approval, with particular reference to:
a. Matters required to be included in the Director’s Responsibility Statement to be
included in the Board’s report in terms of clause (2AA) of Section 217 of the Act;
b. Changes, if any, in accounting policies and practices and reasons for the same;
c. Major accounting entries involving estimates based on the exercise of judgment by
management;
d. Significant adjustments made in the financial statements arising out of audit findings;
e. Compliance with listing and other legal requirements relating to financial statements;
f. Disclosure of any related party transactions;
g. Qualifications in the draft audit report.
5. Reviewing with the management, the quarterly financial statements before submission
to the Board for approval.
6. Reviewing with the management, the statement of uses / application of funds raised
through an issue (public issue, rights issue, preferential issue etc.), the statement of
funds utilised for purposes other than those stated in the offer document / prospectus /
notice and the report submitted by the monitoring agency monitoring the utilisation of
proceeds of a public or rights issue and making appropriate recommendations to the
Board to take up steps in this matter.
7. Reviewing with the management, performance of Statutory and Internal Auditors,
adequacy of the internal control systems.
8. Reviewing the adequacy of internal audit function, if any, including the structure of the
internal audit department, staffing and seniority of the official heading the department,
reporting structure coverage and frequency of internal audit.
9. Discussion with Internal Auditors any significant findings and follow up there on.

30
CMYK

10. Reviewing the findings of any internal investigations by the Internal Auditors into
matters where there is suspected fraud or irregularity or a failure of internal control
systems of a material nature and reporting the matter to the Board.
11. Discussion with Statutory Auditors before the audit commences, about the nature and
scope of audit as well as post-audit discussion to ascertain any area of concern.
12. To look into the reasons for substantial defaults in the payment to the depositors,
debenture holders, shareholders (in case of non payment of declared dividends) and
creditors, if any.
• The Audit Committee reviews the following information
1. Management Discussion and Analysis of financial condition and results of operations;
2. Statement of significant related party transactions (as defined by the Audit Committee),
submitted by management;
3. Management letters / letters of internal control weaknesses issued by the Statutory
Auditors, if any;
4. Internal audit reports relating to internal control weaknesses;
5. The appointment, removal and terms of remuneration of the Chief Internal Auditor;
and
6. Risk Management policy of your Company.
During the year, the Committee has reviewed the internal controls put in place to ensure
that the accounts of your Company are properly maintained and that the accounting
transactions are in accordance with prevailing laws and regulations. In conducting such
reviews, the Committee found no material discrepancy or weakness in the internal control
system of your Company.
The Committee has also reviewed the procedures laid down by your Company for assessing
and managing risks.
• Meeting, attendance and sitting fees paid during the year
During the year, the Audit Committee met 6 times. The meetings were held on 21st April,
2007; 20th July, 2007; 27th September, 2007; 20th October, 2007; 19th January, 2008 and
8th March, 2008 .The details of attendance and sitting fees paid are as follows:
Member No. of meetings Sittings fees paid
Held Attended (Rs.)
R. C. Bhargava 6 6 1,20,000
G. M. Dave 6 4 80,000
S. Rajgopal 6 5 1,00,000

31
CMYK

SHARE TRANSFER AND SHAREHOLDER / INVESTOR GRIEVANCE COMMITTEE

• Composition
A “Share Transfer and Shareholder / Investor Grievance Committee” has been constituted
at the Board level, under the Chairmanship of a Non-Executive Independent Director.
Director Chairman/Member
R. C. Bhargava Member
Dr. S. Misra Member
D. D. Rathi Member
Mr. R.C.Bhargava is elected Chairman of every meeting of the Committee. The Company
Secretary acts as Secretary to the Committee and is also the Compliance Officer.
• Role
The Committee looks into:
– issues relating to share / debenture holders including transfer/transmission of shares/
debentures;
– issue of duplicate share / debenture certificates;
– non-receipt of dividend;
– non receipt of annual report;
– non-receipt of share certificate after transfer;
– delay in transfer of shares.
• Meeting, attendance and sitting fees paid during the year
During the year, the Committee met on 21st April, 2007 and 20th October, 2007. The details
of attendance and sitting fees paid are as follows:
Member No. of meetings Sittings fees paid
Held Attended (Rs.)
R. C. Bhargava 2 2 40,000
Dr. S. Misra 2 2 40,000
D. D. Rathi 2 2 40,000
To expedite the transfer in the physical segment, necessary authority has been delegated
by your Board to the Directors and Officers of your Company to approve transfer/
transmission of shares / debentures. Details of share transfers / transmissions approved by
the Directors and Officers are placed before the Board.
• Number of shareholder complaints received so far / number not solved to the
satisfaction of shareholders / number of pending complaints
Details of complaints received, number of shares transferred during the year, time taken
for effecting these transfers and the number of share transfers pending are furnished in the
“Shareholder Information” section of this Annual Report.

32
CMYK

GENERAL BODY MEETINGS

Year Type Location Date Time

2007 AGM Ravindra Natya Mandir, 20th July, 2007 3:30 p.m.
P. L. Deshpande Maharashtra
Kala Academy,
Near Siddhivinayak Temple,
Sayani Road, Prabhadevi,
Mumbai – 400 025
2006 AGM Birla Matushri Sabhagar, 28th August, 2006 2:00 p.m.
19, New Marine Lines,
Mumbai – 400 020
2005 AGM Birla Matushri Sabhagar, 24thAugust, 2005 2:00 p.m.
19, New Marine Lines,
Mumbai – 400 020

— Whether special resolutions passed in the previous 3 AGMs

Yes, the following resolution was passed as special resolution:
At AGM held on 20th July, 2007
 Keeping of register of members, index of members, register of debentureholders,
index of debentureholders and other related books at the premises of your Company’s
Registrar and Transfer Agent.
— Whether any special resolution passed last year through postal ballot – No
 details of voting pattern N.A.
 person who conducted the postal ballot exercise N.A.
— Whether any special resolution is proposed to be conducted through Will be done
postal ballot and procedure for the same. as per law.
SUBSIDIARY COMPANY
Your Company does not have any material non listed Indian subsidiary company. The Audit
Committee and Board reviews the minutes, financial statements, significant transactions and
working of the unlisted subsidiary companies.
DISCLOSURES
• Disclosure on materially significant related party transactions that may have potential
conflict with the interests of your Company at large
The transactions with related parties entered into by your Company in the normal course
of business were placed before the Audit Committee periodically.
Particulars of related party transactions are listed out in Schedule 21(B)(11) of the Accounts.
However, all these transactions are on normal commercial arm’s length basis.

33
CMYK

• Disclosure of accounting treatment

Your Company has followed all relevant accounting standards in preparing the financial
statements.
• Risk Management
During the year, the Audit Committee reviewed the efficacy of the Risk Management
framework, the key risks associated with the business of your Company and the measures
in place to mitigate the same.
• Proceeds from public issues, rights issues, preferential issues etc.
During the year, your Company did not raise any funds by way of public, rights, preferential
issues etc.
• Details of non-compliance by your Company, penalties, strictures imposed on your
Company by stock exchanges or SEBI or any other statutory authority, on any
matter relating to capital markets, during the year
There has been no instance of non-compliance by your Company on any matter related to
capital markets during the year under review and hence no strictures / penalties have been
imposed on your Company by the stock exchanges or the Securities and Exchange Board
of India (SEBI) or any other statutory authority.
• Management
— The Management Discussion and Analysis forms part of the Annual Report and is in
accordance with the requirements laid out in Clause 49 of the Listing Agreement.
— No material transaction has been entered into by your Company with the Promoters,
Directors or the Management, their subsidiaries or relatives etc. that may have a
potential conflict with interests of your Company.
• Code for prevention of Insider Trading practices
Your Company has instituted a comprehensive Code of Conduct in compliance with the
SEBI regulations on prevention of insider trading.
• Shareholders
— Details of the Directors seeking re-appointment / appointment at the ensuing AGM are
provided in the Notice convening the AGM.
— Press releases and financial results are made available on the website of your Company
(www.ultratechcement.com) and also that of the Aditya Birla Group
(www.adityabirla.com).
• CEO / CFO Certification
The Managing Director and Chief Financial Officer of your Company have issued necessary
certificate pursuant to the provisions of Clause 49 of the Listing Agreement and the same
is attached and forms part of the Annual Report.
• Adoption of non-mandatory compliances
— A half-yearly declaration of financial performance including summary of the significant
events in last six months have been sent to each household of shareholders.
— The statutory financial statements of your Company are unqualified.

34
CMYK

Apart from the above, your Company has constituted a Finance Committee and an ESOS
Compensation Committee of the Board.
• Finance Committee
The Finance Committee comprises of the following Directors viz. Mr. R. C. Bhargava,
Dr. S. Misra and Mr. D. D. Rathi. The Committee is authorised to exercise all powers and
discharge all functions relating to working capital management, foreign currency contracts,
operation of bank accounts and authorising officers of your Company to deal in matters
relating to excise, sales tax, income tax, customs and other judicial or quasi judicial
authorities.
• ESOS Compensation Committee
The ESOS Compensation Committee constituted for implementing, administering and
supervising the Employee Stock Options Scheme – 2006 (“the Scheme”) comprises of
Mr. Kumar Mangalam Birla, Mr. G. M. Dave and Mr. S. Rajgopal. During the year, the
Committee granted 1,68,070 stock options to eligible employees of your Company in the
management cadre, subject to the provisions of the Scheme, statutory provisions including
SEBI Guidelines as may be applicable from time to time and the rules and procedures set
out by your Company in this regard.
MEANS OF COMMUNICATION
• Quarterly results
— Which newspapers normally published in:
Newspaper Cities of Publication
Business Standard All editions
Economic Times Mumbai
Free Press Journal Mumbai
Navshakti Mumbai
Maharashtra Times Mumbai

— Any website, where displayed www.ultratechcement.com

www.adityabirla.com
— Whether your Company’s website displays
All official news releases Yes
Presentation made to Institutional Investors/Analysts Yes
(through your Company’s
holding company)
Annual Report, Quarterly Results, Shareholding Pattern etc. of your Company are also
posted on the SEBI EDIFAR www.sebiedifar.nic.in

35
CMYK

CODE OF CONDUCT
Declaration
As provided under Clause 49 of the Listing Agreement with the stock exchanges, the Board
Members and the Senior Management Personnel have confirmed compliance with the Code of
Conduct for the year ended 31st March, 2008.

Mumbai S. Misra
22nd April, 2008 Managing Director
CEO/CFO CERTIFICATE
The Board of Directors
UltraTech Cement Limited
We certify that:
1. We have reviewed the financial statement, read with the cash flow statement of UltraTech
Cement Limited (the Company) for the year ended 31st March, 2008 and 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 present a true
and fair view of the Company’s affairs and are in compliance with the existing accounting
standards, applicable laws and regulations;
2. 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;
3. We are responsible for establishing and maintaining internal controls for financial reporting
and we have evaluated the effectiveness of the internal control systems of the Company
pertaining to financial reporting;
4. We have disclosed to the Company’s Auditors and the Audit Committee of the Company’s
Board of Directors all significant deficiencies in the design or operation of internal controls,
if any, of which we are aware and the steps taken or proposed to be taken to rectify the
deficiencies.
5. We have indicated to the Auditors and the Audit Committee:
a) significant changes in the Company’s internal control over financial reporting during
the year.
b) significant changes in accounting policies during the year, if any, and that the same
have been disclosed in the notes to the financial statements.
c) that to the best of our knowledge, no fraud, whether or not material, that involves
management or other employees who have a significant role in the Company’s internal
control system over financial reporting existed during the period under review.

Mumbai K. C. Birla S. Misra

22nd April, 2008 CFO Managing Director

36
CMYK

SH A R E H O L D E R INFORMATION
1. Annual General Meeting
— Date and Time : Friday, 18th July, 2008, 3:30 p.m.
— Venue : Ravindra Natya Mandir,
P. L. Deshpande Maharashtra
Kala Academy,
Near Siddhivinayak Temple,
Sayani Road, Prabhadevi,
Mumbai – 400 025
2. Financial Calendar
— Financial reporting for the quarter ending : End July, 2008
30th June, 2008
— Financial reporting for the half year ending : End October, 2008
30th September, 2008
— Financial reporting for the quarter ending : End January, 2009
31st December, 2008
— Financial reporting for the year ending : End April, 2009
31st March, 2009
— Annual General Meeting for the year ending : End July/August, 2009
31st March, 2009
3. Dates of Book Closure : 11th July, 2008 to 18th July, 2008
(both days inclusive)
4. Dividend Payment Date : On or after 18th July, 2008
5. Registered Office : UltraTech Cement Limited
“B” Wing, Ahura Centre,
2nd Floor, Mahakali Caves Road,
Andheri (East), Mumbai-400 093.
Tel. : (022) 66917800
Fax : (022) 66928109
Email : sharesutcl@adityabirla.com
Web : www.ultratechcement.com
www.adityabirla.com
6. (a) Listing Details:
Equity Shares Non-Convertible Debentures
1. Bombay Stock Exchange Limited 1. Bombay Stock Exchange Limited
Phiroze Jeejeebhoy Towers, Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai-400 001. Dalal Street, Mumbai-400 001.
2. National Stock Exchange of India Limited, 2. National Stock Exchange of India Limited,
“Exchange Plaza”, Bandra Kurla Complex, “Exchange Plaza”, Bandra Kurla Complex,
Bandra (East), Mumbai-400 051. Bandra (East), Mumbai-400 051.
Note: Listing fees for the year 2008-09 has been paid to the Bombay Stock Exchange Limited
and the National Stock Exchange of India Limited.

37
CMYK

(b) Name and address of Trustees : AXIS Bank Limited

for the Debentureholders 131, Maker Tower ‘F’,
13th Floor, Cuffe Parade,
Colaba, Mumbai-400 005
Tel: (022) 67074407
Fax: (022) 22186944
(c) Overseas Depository for GDRs : Citibank N. A.
Depository Receipt Services
388, Greenwich Street,
New York; NY-10013 USA
Tel: +2128166649
Fax: +2128166865
(d) Domestic Custodian of GDRs : Citibank N.A.
Custody Services,
Ramnord House,
77, Annie Besant Road,
Worli, Mumbai – 400 018
Tel: (022) 24978066
Fax: (022) 24978060
7. Stock Code : ISIN INE481G01011
Stock Code Reuters Bloomberg
Bombay Stock Exchange Limited 532538 ULTC.BO UTCEM IB
National Stock Exchange of India Limited ULTRACEMCO ULTC.NS UTCEM IS
8. Stock Price Data:
Bombay Stock Exchange Limited National Stock Exchange of India Limited
High Low Close Avg. Vol High Low Close Avg. Vol.
(In Rs.) (In Rs.) (In Rs.) (In Nos.) (In Rs.) (In Rs.) (In Rs.) (In Nos.)
Apr-07 860.00 662.30 820.30 1,112,381 864.50 662.00 821.25 2,427,519
May-07 859.95 790.00 827.00 605,846 925.00 786.20 831.50 1,224,524
Jun-07 916.20 779.00 900.05 591,676 916.90 778.10 900.40 1,459,651
Jul-07 1,004.00 851.00 932.15 1,086,843 1,004.50 852.50 933.40 2,951,648
Aug-07 950.00 808.20 920.50 972,493 950.00 815.25 920.35 1,888,070
Sep-07 1,090.00 921.95 1,042.55 586,264 1,095.40 920.00 1,047.30 1,557,418
Oct-07 1,165.00 968.50 999.15 1,042,064 1,165.00 955.05 997.20 2,011,702
Nov-07 1,070.00 870.00 987.40 757,020 1,065.50 925.55 984.25 1,972,723
Dec-07 1,050.00 926.00 1,014.50 872,546 1,101.80 960.00 1,013.50 1,892,154
Jan-08 1,040.00 731.00 860.60 1,158,549 1,028.00 706.65 873.45 2,035,053
Feb-08 925.00 785.25 911.35 806,427 925.15 728.60 904.50 1,349,669
Mar-08 940.00 750.00 779.85 334,423 993.00 751.55 784.55 1,261,761

38
CMYK

9. Stock Performance:
200

180

160

140

120

100

80

60
Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

Sensex UltraTech Nifty

10. Stock Performance and Returns:

Absolute Returns
(In Percentage) 1 Year 3 Years 5 Years
UltraTech 1.61 121.16 —
BSE Sensex 19.68 140.95 413.15
NSE Nifty 23.89 132.58 384.00
Annualised Returns
(In Percentage) 1 Year 3 Years 5 Years
UltraTech 1.61 30.29 —
BSE Sensex 19.68 34.06 38.69
NSE Nifty 23.89 32.49 37.09
11. Registrar and Transfer Agents (RTA) : Sharepro Services (India) Private Limited
(For share transfers and other Satam Estate, 3rd Floor, Above Bank of Baroda,
communication relating to Cardinal Gracious Road, Chakala,
share certificates, dividend and Andheri (East), Mumbai-400 099.
change of address) Tel : (022) 67720300/28215168
Fax : (022) 28375646
Email:sharepro@shareproservices.com
12. Share Transfer system:
Share transfer in physical form are registered and returned within a period of 12 days from
the date of receipt, if the documents are clear in all respects. Officers of your Company
have been authorised to approve transfers upto 5,000 shares in physical form under one
transfer deed. One Director jointly with one Officer of your Company have been authorised
to approve the transfers exceeding 5,000 shares under one transfer deed.

39
CMYK

The RTA attends to investor grievances in consultation with the Secretarial Department of
your Company.
2007-08 2006-07
Transfer Period No. of No. of % No. of No. of %
(in days) transfers shares transfers shares
1 – 15 999 22,192 47.80 1,565 34,625 48.69
16 – 20 140 6,519 6.70 361 13,399 11.23
21 – 30 951 39,264 45.50 1,288 44,390 40.08
Total 2,090 67,975 100.00 3,214 92,414 100.00
Number of pending share transfers : 46 transfers in respect of 1,806 shares pending
as at 31st March, 2008 as registered notices have been issued to
sellers.
13. Investor Services:
Complaints received during the year
Nature of Complaints 2007-08 2006-07
Received Cleared Received Cleared
Relating to Transfer, Transmission,
Dividend, Interest, Demat & Remat 11 11 21 21
and Change of address etc.
Legal proceedings on share transfer : There are no major legal proceedings relating
issues, if any to transfer of shares.
14. Distribution of Shareholding as on 31st March:
2008 2007
No. of % of No. of % of No. of % of No. of % of
No. of Equity share share shares share share share shares share
Shares held holders holders held holding holders holders held holding
1 – 100 244,434 89.06 7,386,717 5.93 258,881 89.00 7,842,953 6.30
101 – 200 17,678 6.44 2,623,356 2.11 18,822 6.47 2,797,601 2.25
201 – 500 8,540 3.11 2,706,955 2.18 9,127 3.14 2,893,342 2.32
501 – 1000 2,328 0.85 1,662,534 1.34 2,495 0.86 1,778,311 1.43
1001 - 5000 1,214 0.44 2,270,872 1.82 1,323 0.45 2,471,605 1.99
5001-10000 81 0.03 590,299 0.47 92 0.03 652,631 0.52
10001 & above 174 0.07 107,245,146 86.15 153 0.05 106,049,436 85.19
Total 274,449 100.00 124,485,879 100.00 290,893 100.00 124,485,879 100.00

40
CMYK

15. Category of Shareholding as on 31st March:

2008 2007
Category No. of % of No. of % of No. of % of No. of % of
share share shares share share share shares share
holders holders held holding holders holders held holding
Promoters &
Promoter Group 5 0.00 67,689,875 54.38 5 0.00 65,947,119 52.97
Banks/MFs / FIs
Mutual Fund
& UTI 49 0.02 2,300,070 1.85 38 0.01 2,497,719 2.01
Banks & FI’s 96 0.03 125,032 0.10 104 0.04 89,919 0.07
Insurance
Companies 14 0.01 8,576,961 6.89 12 0.00 7,381,023 5.93
Foreign Investors
FIIs 189 0.07 8,295,408 6.66 171 0.06 11,647,362 9.36
GDRs 1 0.00 275,804 0.22 1 0.00 422,044 0.34
NRIs/OCBs 3,298 1.20 701,928 0.56 3,509 1.21 728,504 0.58
Corporates 2,004 0.73 18,327,839 14.72 2,244 0.77 16,931,156 13.60
Others 268,793 97.94 18,192,962 14.62 284,809 97.91 18,841,033 15.14
Total 274,449 100.00 124,485,879 100.00 290,893 100.00 124,485,879 100.00

Others Others
14.62% 15.14%
Corporates Promoters Corporates Promoters
14.72% & Promoter 13.60% & Promoter
Group Group
54.38% 52.97%
Foreign Foreign
Investors Investors
7.44% 10.28%
Insurance Banks/MFs/FI's Insurance Banks/MFs/FI's
Companies 1.95% Companies 2.08%
6.89% 5.93%

2008 2007

16. Dematerialisation of shares : 96.32% of outstanding shares have been

and liquidity
17. Details on use of public funds
obtained in the last three years
18. Outstanding GDR/Warrants and
Convertible Bonds
dematerialised as on 31st March 2008. Trading in shares
of your Company is permitted only in the
dematerialised form.
: Not Applicable
: 275,804 GDRs are outstanding as on 31st March, 2008.
Each GDR represents one underlying equity
share.There are no warrants/convertible bonds
outstanding as at the year end.

41
CMYK

19. Plant Locations :

Andhra Pradesh
Cement Works
Bhogasamudram,
Tadipatri Mandal,
Anantapur District,
Andhra Pradesh - 515 415
Tel: 08558-288847/41
Fax: 08558-288821/59
Awarpur Gujarat
Cement Works Cement Works
P.O. Awarpur Cement P.O. Kovaya,
Project, Taluka: Korpana, Taluka - Rajula,
District: Chandrapur, District: Amreli,
Maharashtra - 442 917 Gujarat - 365 541
Tel: 07173-266323 Tel: 02794-283034
Fax: 07173-266339 Fax:02794-283036

Hirmi Cement Works Jafrabad Cement Works Arakkonam Cement Works

Village & Post: Hirmi,
Tahsil: Simga,
District: Raipur,
Chhattisgarh - 493 195
Tel: 07726-281217/218/221
Fax: 07726-281572
P. B. No. 10, Chitteri Village,
Village:Babarkot, District Vellore,
Taluka: Jafrabad, Arakkonam,
District: Amreli, Tamil Nadu - 631 003
Gujarat - 365 540 Tel: 04177-293291
Tel:02794-245103
Fax: 02794-245110

Jharsuguda Cement Works Magdalla Cement Works Ratnagiri Cement Works

Near Dhutra Railway Station,
P.O. Arda,
District: Jharsuguda,
Orissa - 768 202
Tel: 06645-283104/105
Fax: 06645-283108/110
Near Magdalla Port, MIDC Industrial Estate,
Dumas Road, Zadgaon Block, Ratnagiri,
Surat, Maharashtra - 415 639
Gujarat - 395 007 Tel:02352-223679
Tel:0261-2725175 Fax: 02352-221807
Fax: 0261-2726952

West Bengal Cement Works Ginigera Cement Works

Near EPIP, Ginigera Grinding Unit
Muchipara,Post: Rajbandh, Ginigera Village,
Durgapur, Koppal Gangavathi Road,
West Bengal - 713 212 Koppal Taluq & District,
Tel: 0343-2533029 Karnataka
Fax:0343-2533358 Tel: 08539-286575/572
Fax: 08539-286574
20. Investor Correspondence:
Registered Office Registrar & Transfer Agent (RTA)
UltraTech Cement Limited Sharepro Services (India) Private Limited
‘B’ Wing, Ahura Centre, Satam Estate, 3rd Floor, Above Bank of Baroda,
nd
2 Floor, Mahakali Caves Road, Cardinal Gracious Road, Chakala,
Andheri (East), Mumbai - 400 093 Andheri (East), Mumbai - 400 099
Tel: (022) 66917800 Tel: (022) 67720300/28215168
Fax: (022) 66928109 Fax: (022) 2837 5646
Email: sharesutcl@adityabirla.com; Email: sharepro@shareproservices.com
kamal.r@adityabirla.com satishp@shareproservices.com
Contact person: Mr. Kamal Rathi Contact person: Mr. Satish Poojari
Email for investor correspondence under SEBI requirements: sharesutcl@adityabirla.com

42
CMYK

21. Other Useful Information for Shareholders:

Unpaid/Unclaimed Dividends
Dividend warrants in respect of the interim dividend declared in March, 2007 have been
despatched to the shareholders at the addresses registered with the Company. Those
shareholders who have not yet received the dividend warrants may please write to the
Company or its RTA for further information in this behalf. Shareholders who have not
encashed the warrants are requested to do so by getting them revalidated from the Registered
Office of the Company or its RTA.
ECS Facility
The Company is providing facility of “Electronic Clearing Service” (ECS) for payment of
dividend to shareholders. Shareholders are requested to provide details of their bank
account for availing ECS facility. Further ECS facility is also available to the beneficial
owners of shares in demat form. Those desirous of availing the ECS facility may provide
their mandate to the Company in writing, in the form which can be downloaded from the
Company’s website.
Share Transfer / Dematerialisation
1. Share transfer requests are acted upon within 12 days from the date of their receipt by
the Company or its RTA. In case no response is received from the Company within 30
days of lodgement of transfer request, the lodger should immediately write to the
Company or its RTA with full details so that necessary action could be taken to
safeguard interest of the concerned against any possible loss / interception during
postal transit.
2. Dematerialisation requests duly completed in all respects are normally processed within
7 days from the date of their receipt at the Company or its RTA.
3. Equity shares of the Company are under compulsory demat trading by all investors.
Considering the advantages of scripless trading, shareholders are requested to consider
dematerialisation of their shareholding so as to avoid inconvenience in future.
4. The equity shares of the Company have been admitted with the National Security
Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL)
bearing ISIN No. INE481G01011.
Correspondence with the Company
Shareholders / Beneficial Owners are requested to quote their Folio Number / DP & Client
ID Numbers as the case may be, in all correspondence with the Company. All correspondence
regarding shares & debentures of the Company should be addressed to the Company or its
RTA.
Non-Resident Shareholders
Non-resident shareholders are requested to immediately notify:-
• Indian address for sending all communications, if not provided so far;
• Change in their residential status on return to India for permanent settlement;
• Particulars of their NRE Bank Account with a bank in India, if not furnished earlier.

43
CMYK

Others

1. In terms of the Regulations of NSDL and CDSL, the bank account details of Beneficial
Owners of shares in demat form will be printed on the dividend warrants as furnished
by the Depository Participants(DP). The Company will not entertain any request for
change of bank details printed on their dividend warrants. In case of any changes in
your bank details please inform your DP immediately.

2. Shareholders holding shares in physical form are requested to notify to the Company,
change in their address / pin code number and Bank Account details promptly by
written request under the signatures of sole / first joint holder. Beneficial Owners of
shares in demat form are requested to send their instructions regarding change of
name, change of address, bank details, nomination, power of attorney, etc. directly to
their DP as the same are maintained by the DPs.

3. To prevent fraudulent encashment of dividend warrants, shareholders are requested to

provide their bank account details (if not provided earlier) to the Company (if shares
held in physical form) or to DP (if shares held in demat form), as the case may be, for
printing of the same on their dividend warrants.

4. In case of loss / misplacement of shares, shareholders should immediately lodge a FIR

/ Complaint with the Police and inform the Company along with original or certified
copy of FIR / Acknowledged copy of Police complaint.

5. For expeditious transfer of shares, shareholders should fill in complete and correct
particulars in the transfer deed. Wherever applicable, registration number of Power of
Attorney should also be quoted in the transfer deed at the appropriate place.

6. Shareholders are requested to keep record of their specimen signature before lodgement
of shares with the Company to obviate possibility of difference in signature at a later
date.

7. Shareholders of the Company who have multiple accounts in identical name(s) or

holding more than one share certificate in the same name under different ledger folio(s)
are requested to apply for consolidation of such folio(s) and send the relevant share
certificates to the Company.

8. Section 109A of the Companies Act, 1956 extends nomination facility to individuals
holding shares in physical form in companies. Shareholders, in particular, those holding
shares in single name, may avail of the above facility by furnishing the particulars of
their nominations in the prescribed Nomination Form which can be obtained from the
Company or its RTA or download the same from the Company’s website.

9. Shareholders are requested to give us their valuable suggestions for improvement of

our investor services.

44
CMYK

10. Addresses of the redressal agencies for investors to lodge their grievances:
Ministry of Corporate Affairs (MCA) Securities and Exchange Board of
‘A’ Wing, Shastri Bhawan, India (SEBI)
Rajendra Prasad Road, Plot No.C4-A,‘G’ Block,
New Delhi - 110 001 Bandra Kurla Complex,
Tel.: (011) 23384660, 23384470, Bandra (East), Mumbai - 400 051
23389403 Tel.: (022) 26449000/40459000
Web: www.mca.gov.in Fax: (022) 26449016-20
Web: www.sebi.gov.in
Stock Exchanges:
Bombay Stock Exchange Limited (BSE) National Stock Exchange of India
Phiroze Jeejeebhoy Towers, Limited (NSE)
Dalal Street, Exchange Plaza,
Mumbai - 400 001 Plot No. C/1, ‘G’ Block,
Tel.: (022) 22721233/34 Bandra Kurla Complex,
Fax: (022) 22721919 Bandra (East), Mumbai - 400 051
Web: www.bseindia.com Tel.: (022) 26598100-8114
Fax: (022) 26598120
Web: www.nseindia.com

Depositories:
National Securities Depository Limited Central Depository Services (India)
(NSDL) Limited (CDSL)
Trade World, ‘A’ Wing, 4th & 5th Floors, Phiroze Jeejeebhoy Towers,
Kamala Mills Compound, 16th Floor, Dalal Street,
Lower Parel, Mumbai - 400 013 Mumbai - 400 001
Tel.: (022) 2499 4200 Tel.: (022) 22723333
Fax: (022) 24972993/24976351 Fax: (022) 22723199/22722072
Web: www.nsdl.co.in Web: www.cdslindia.com

45
CMYK

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of
UltraTech Cement Limited
We have examined the compliance of the conditions of Corporate Governance by UltraTech
Cement Limited for the year ended on March 31, 2008, 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

Atul B. Desai
(Partner)
Membership No. 30850
Place: Mumbai
Date: 22nd April, 2008

46
CMYK

SHAREHOLDER INFORMATION
NOTICE

SO C I A L REPORT

Girl child education Polio immunisation camp

Transcending Business
Sweep your gaze in large parts of India’s hinterland. Here you encounter conditions that cause
you pain and concern as well. It is here that the poorest of the poor live – in India’s villages.
A whopping 64% of India’s population is housed here. It is here that you find India’s poverty
and high points of distress.
As a Group we have been and continue to be extremely sensitive to societal needs. In our own
small way, we try to bring in some relief and make a difference to the lives of the weaker
sections of society who live close to our Units. We try to provide health care and raise life
expectancy, and reduce infant mortality. Through our endeavours in education, we lift literacy
rates. Through empowerment and training processes, we promote sustainable livelihood.
All of your Company’s social projects are carried out under the umbrella of the Aditya Birla
Centre for Community Initiatives and Rural Development. These are spearheaded by
Mrs. Rajashree Birla, your Director. For the year 2007-08 we have considerable progress as
indicated.
In Health Care
 At medical camps conducted, 40,844 villagers were examined and those afflicted were
treated for their ailments.
 In dental care camps, of the 464 patients seen, 59 underwent dental surgery.
 This year, 2,12,072 children were immunised against polio.
 At HIV / AIDS awareness programs conducted by us, we enlisted 7,072 participants.
 Our Family Planning awareness program benefited 637 people.

47
CMYK

 At eye camps conducted by us, 309 people were treated. Of this, 213 were provided with
spectacles for better sight.
 Rehabilitation camp for the physically challenged reached out to 274 beneficiaries.
 At the Awarpur Cement Works, “Mothers Health Month” was organised which benefited
554 women.
Education
 Books, school uniforms, furniture were provided to 5,779 school children.
 Adult Education Centres opened in association with District Adult Education Department
reached out to 1,073 persons.
 We supported 434 meritorious students and financial assistance was accorded to 4,776
students.
 Career guidance programs were conducted for 587 students.
Sustainable Livelihood
 At our Awarpur works, a 5-day “Rock Bee Honey Training Camp’ was organised in
collaboration with “Tribal Cooperative Marketing Federation of India Limited, New Delhi”
and 25 youngsters were trained in honey extraction and collection.
 Facilitated the ‘Krushi Rath’ scheme of the Government to impart knowledge of modern
farming and irrigation to 1,775 farmers.
 1,771 people participated in various skill development and vocational training programs to
enhance employment prospects.
Women Self-Help Groups
 248 women were trained on tailoring.
 225 women participated at an ‘Awareness Development Camp’ held in association with
Central Board for Workers Education, Ministry of Labour & Employment, Government of
India, to promote self employment among poor women.

Tailoring class for women Eye check up camp

48
CMYK

 Many village women teamed up at training programs on sea tortoise protection.

 Self Help Groups have enabled the empowerment of women living in villages surrounding your
Company’s Units.
Social Welfare
 33 tribal participants attended an “Adiwasi Awareness Camp” organised by Awarpur Cement
Works in association with the Central Board of Workers Education, Government of India,
covering topics like rights and facilities for the tribes.
 Refrigerators, Blankets, Stoves, Mixers, Floor mats and other cooking items were given to
an Old Age Home at Akkannapalli village.
Infrastructure
 In collaboration with the District Rural Development Department Agency, Chandrapur, we
have undertaken the construction of 38 houses for Kolam tribes.
 Kitchen sheds were constructed in 6 schools in Awarpur for distribution of mid-day meals
for children.
 Financial assistance was provided
– to BPL families for construction of sanitary blocks.
– for constructing and operating high schools by partnering with the Rural Development
Foundation.
– for laying of cement concrete roads in 4 villages benefiting 6,000 villagers.
 Provision of street lights for 5,600 beneficiaries. Laying of drinking water pipelines in
villages helped 21,951 villagers.
Our Board of Directors, our Management and all of our employees subscribe to the philosophy
of compassionate care. We believe and act on an ethos of generosity and compassion,
characterised by a willingness to build a society that works for everyone.

49
CMYK

SHAREHOLDER INFORMATION
NOTICE

ENVIRONMENT REPORT

Greenery around your Company’s Unit

We have always believed in being caring corporate citizens wherever we operate. Within our
philosophy the concept of caring for the planet is embedded. We are committed to sustainable
development. We believe that economic growth and environmental protection are inextricably
linked.

Your Company is a voluntary member of the Cement Sustainability Initiative (CSI) established
under the banner of the World Business Council for Sustainable Development (WBCSD). The
CSI accords priority to a series of programmes with a view to preserving mineral resources
through the use of alternative fuels and materials; minimising greenhouse gas emissions
through technology upgradation; and interventions to secure employee health and safety at the
work place.

Accordingly your Company is in the process of concluding a baseline report for the year 2007,
prepared in accordance with CSI reporting standards by Ernst & Young, the well reputed
Accounting firm. This Report will also serve to identify priorities for future improvement.

50
CMYK

Your Company’s commitment to sustainable development is demonstrated in two Clean

Development Mechanism (CDM) Projects registered with the United Nations Framework
Convention for Climate Change (UNFCCC). Your Company’s Plant at Tadipatri in Andhra
Pradesh has already been awarded Certified Emission Reduction (CERs) for its Project on the
optimum utilisation of Clinker for the production of Pozzolona Cement. Their Waste Heat
Recovery Project has also been registered with the UNFCCC and will also be eligible for carbon
credits.

Your Company is also a member of the Cement Task Force of the Asia Pacific Partnership on
Clean Development & Climate, an initiative spearheaded by Australia, China, Japan, India,
South Korea, USA and Canada. The objective of this initiative is to develop, deploy and
transfer emerging and existing clean technology. This will enable support of rapidly expanding
energy needs, while containing greenhouse gas emissions. Your Company has already submitted
Projects on Waste Heat Recovery and the use of Hazardous Wastes in Cement Kilns for
collaboration with other cement companies in the region.

Your Company’s Units are certified in compliance with ISO 14001 Environment Management
System and OHSAS 18001.

Your Company has validated it’s energy efficiency based on data from Global Benchmarking
Survey conducted by Whitehopleman, an independent UK based Consulting firm.

We have opted for rain-water harvesting in a big way. Our measures include, collecting rain-
water in the lower benches of some of our captive limestone mines, water recharging projects,
creation of water bodies in the catchment areas for rain-water storage. This way we also
provide water to communities that live in proximity to our Units.

In sum, in the words of Theodore Roosevelt, “To waste, to destroy, our natural resources, to
skin and exhaust the land instead of using it so as to increase its usefulness, will result in
undermining in the days of our children the very prosperity which we ought by right to hand
down to them amplified and developed”. We bear this in mind. Always.

51
CMYK

DI R E C T O R S ’ R E P O R T T O T H E S H A R E H O L D E R S
Dear Shareholders,
Your Directors present the Eighth Annual Report together with the Audited Accounts of your
Company for the year ended 31st March, 2008:
FINANCIAL RESULTS
(Rs. in crores)
2007-08 2006-07
Gross Turnover 6,286.24 5,484.35
Gross Profit 1,744.24 1,392.44
Less: Depreciation 237.23 226.25
Profit Before Tax 1,507.01 1,166.19
Tax Expenses 499.40 383.91
Profit After Tax 1,007.61 782.28
Add: Balance brought forward from Previous Year 775.16 180.57
Surplus available for Appropriation 1,782.77 962.85
Appropriation
Debenture Redemption Reserve (8.17) 30.92
General Reserve 120.00 100.00
Dividend 62.24 49.79
Corporate tax on Dividend 10.58 6.98
Balance transferred to Balance Sheet 1,598.12 775.16
Total 1,782.77 962.85

REVIEW OF OPERATIONS AND OVERVIEW

During the year, your Company produced 15.07 MMT of cement (14.64 MMT). Effective
capacity utilisation remained flat at 101%. Exports were curtailed to cater to the growing
domestic demand. This supported domestic volume growth of 7%. Variable cost increased by
over 8% mainly on account of escalation in the cost of raw materials, including imported coal
and mounting freight charges.
Continuous de-bottlenecking efforts across your Company’s Units resulted in a capacity increase
of 1.2 MMT.
Your Company’s turnover at Rs. 6,286.24 crores was up by 15% compared to Rs. 5,484.35
crores achieved in the previous year. Profit after tax stood at Rs.1,007.61 crores (Rs.782.28
crores) after providing for depreciation - Rs. 237.23 crores (Rs. 226.25 crores) and tax -
Rs. 499.40 crores (Rs. 383.91 crores).

52
CMYK

DIVIDEND
Your Directors recommended a dividend of Rs. 5/- per equity share of Rs. 10/- each for the
year ended 31st March, 2008. The dividend distribution would result in a cash outgo of
Rs. 72.82 crores (including tax on dividend of Rs. 10.58 crores) compared to Rs. 56.77 crores
(including tax on dividend of Rs. 6.98 crores) paid for the year 2006-07.
CAPITAL EXPENDITURE
Your Company initiated various expansion and de-bottlenecking programs to maintain growth
and improve efficiencies.
The Clinkerisation (pyrosection) unit at Andhra Pradesh Cement Works (APCW) was
commissioned during the fourth quarter of the financial year ended 31st March, 2008. The
balance work on capacity expansion at APCW is progressing and the split grinding Unit at
Ginigera in Karnataka is on track. The Unit will be operational in the first half of the current fiscal.
Upon commissioning of expanded capacity at APCW, your Company’s total capacity will be
23.1 MMT.
Trials have begun on the 1st Stream of the Thermal Power Plant (TPP) of 23MW at Gujarat
Cement Works (GCW) in Gujarat. All four Streams aggregating to 92MW will be fully
operational by H1FY09. In addition, TPP’s aggregating to 135MWs are being set up at
Awarpur Cement Works (ACW) in Maharashtra, APCW and Hirmi Cement Works (HCW) in
Chhattisgarh. These power plants, except ACW, will be commissioned in a phased manner in
FY09.
In FY08 15 Ready Mix Concrete (RMC) plants have been set up across the country.
EMPLOYEE STOCK OPTION SCHEME
The ESOS Compensation Committee of the Board of your Company formulated the Employee
Stock Option Scheme – 2006 (“ESOS-2006”) at its meeting held on 23rd August, 2007.
The ESOS Compensation Committee granted 1,68,070 stock options to eligible employees of
your Company. 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
Your Company was the recipient of the following awards:
• The Top Exporter Award from CAPEXIL for the eleventh consecutive year.
• State level award for excellence in energy conservation and management for 2006 for
ACW.
• The CII National award for excellence in Energy Management 2007 – ‘Energy Efficient
Unit’ and ‘Innovative Project’ for APCW.
• Mines safety award – First prize in ‘Method of Working’ and Second prize in ‘Drilling and
Blasting’ for APCW.
• National Safety Award for outstanding performance in industrial safety for HCW.

53
CMYK

RESEARCH AND DEVELOPMENT

Your Company continued its efforts towards maximising waste utilisation, search for alternative
sources of fuel and chemical and mineral evaluation of captive limestone mines. These measures
will aid in conserving natural resources.

HUMAN RESOURCES
At your Company, employees continue to be the key driving force of the organisation and
remain a strong source of our competitive advantage. We believe in aligning business priorities
with the aspirations of employees leading to the development of an empowered and responsive
human capital. We strive to create a work environment which encourages innovation and
creativity.
Through our strong Employer Brand, we were able to attract quality people with required
skills who have become part of our competent and committed workforce. Appropriate measures
are being planned by your Company to ensure talent retention and employee engagement.
Your Company continued to support learning and development initiatives to enhance the
functional as well as the behavioural competencies of our people. At ‘Gyanodaya’ - The
Aditya Birla Institute of Management Learning, executives of your Company were enlisted for
various high quality learning interventions. These programs supplemented with a combination
of developmental assignments, classroom and web based training, has enabled our people to
continuously learn, develop and grow.
Our performance management system is primarily based on competencies and values. We
closely monitor growth and development of top talent in your Company, to align personal
aspirations with the organisation purpose.

CORPORATE GOVERNANCE
Your Directors reaffirm their continued commitment to good corporate governance practices.
During the year under review, your Company complied with the provisions of Clause 49 of the
Listing Agreement with the stock exchanges which relates to corporate governance.
A separate section on corporate governance together with a certificate from your Company’s
Statutory Auditors forms a part of this Annual Report.

SUBSIDIARY COMPANIES
In terms of Section 212 of the Companies Act, 1956, (“the Act”) the Accounts together with
the Report of Directors and the Auditor’s Report of your Company’s subsidiaries viz. Dakshin
Cements Limited (Dakshin) and UltraTech Ceylinco (Pvt) Limited (UltraTech Ceylinco) forms
a part of this Report.
In line with the provisions of the Accounting Standards prescribed by the Institute of Chartered
Accountants of India and the provisions of the Listing Agreement with the stock exchanges,
the duly audited Consolidated Financial Statement has been prepared after considering the
financial statements of your Company’s subsidiaries viz. Dakshin and UltraTech Ceylinco.

54
CMYK

FINANCE
CRISIL has upgraded your Company’s rating from “AA+/Stable” to “AAA/Stable”. Your
Company is also one of the few companies to have its bank loan facilities rated. CRISIL has
assigned your Company’s bank loan facility, the highest rating of “AAA/Stable/P1+”. Such a
rating allows your Company to borrow on competitive terms.
Your Company has raised Rs.90 crores by way of fully hedged Buyers Credit for a tenure of
three years. These funds have been used for various ongoing capex.
Your Company has repaid debentures and loans amounting to Rs. 285 crores.
Your Company has not invited or renewed deposits from the public / shareholders in accordance
with Section 58A of the Act.

ENERGY, TECHONOLOGY 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.

PARTICULARS 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, as per the provisions of
Section 219(1)(b)(iv) of the Act, the Report and Accounts as therein set out, are being sent to
all Members of your Company excluding the aforesaid information about the employees. Any
Member, who is interested in obtaining such particulars about employees, may write to the
Company Secretary at the Registered Office of your Company.

DIRECTOR’S RESPONSIBILITY STATEMENT

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
substances 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, the 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 31st March, 2008 and of the profit of your Company for the
year ended on that date;

55
CMYK

(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.
DIRECTORS
Mr. S. Rajgopal, Nominee Director resigned from the Board of your Company with effect
from 20th October, 2007 consequent to the withdrawal of his nomination by the Administrator
of the Specified Undertaking of the Unit Trust of India. However, considering his vast knowledge
and experience, the Board inducted Mr. Rajgopal as an Additional Director with effect from
that date. Mr. Rajgopal holds office upto the conclusion of the ensuing Annual General
Meeting. Notice pursuant to Section 257 of the Act has been received from a Member of your
Company proposing Mr. Rajgopal’s appointment as Director.
Mrs. Rajashree Birla, Mr. V. T. Moorthy and Mr. R. C. Bhargava retire from office by rotation
and being eligible, offer themselves for re-appointment.
A brief resume of the Directors being appointed / re-appointed are attached to the Notice of
the ensuing Annual General Meeting.
AUDITORS
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. M/s. Deloitte Haskins & Sells, Chartered Accountants,
Mumbai and M/s. G.P. Kapadia & Co., Chartered Accountants, Mumbai being eligible, 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 Auditors 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 Auditors 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.

56
CMYK

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 AUDITORS
Pursuant to the provisions of Section 233B of the Act, your Directors have appointed
M/s. N. I. Mehta & Co., Cost Accountants, Mumbai as the Cost Auditor to conduct the cost
audit of your Company for the financial year ending 31st March, 2009, subject to the approval
of the Central Government.

APPRECIATION
Your Directors place on record their appreciation of the contribution made by employees at all
levels. Your Company’s growth was made possible by employee’s support, co-operation,
commitment, solidarity and hard work.
Your Directors wish to take this opportunity to express their deep sense of gratitude to the
Central and State Governments, banks, financial institutions, shareholders and business
associates for their co-operation and support and look forward to their continued support in
future.

For and on behalf of the Board

Mumbai Kumar Mangalam Birla

22nd April, 2008 Chairman

57
CMYK

ANNEXURE I
Disclosure pursuant to Clause 12 of Securities and Exchange Board of India (Employee Stock Option Scheme and
Employee Stock Purchase Scheme) Guidelines, 1999
Particulars ESOS – 2006
rd
Tranche I [23 August, 2007] Tranche II [25th January, 2008]
a. No. of Options granted 99,010 69,060
b. The Pricing formula The exercise price is the average price The exercise price is the average
of the equity shares of the Company price of the equity shares of the
in the immediate preceding seven days Company in the immediate preceding
period (at a stock exchange as seven days period (at a stock exchange
determined by the ESOS Compensation as determined by the ESOS
Committee) on the date prior to the Compensation Committee) on the
date on which the ESOS Compensation date prior to the date on which the
Committee finalised the specific number ESOS Compensation Committee
of Options to be granted to the finalised the specific number of
employees, discounted by 30%. Options to be granted to the
employees, discounted by 2%.
Exercise Price : Rs. 606/- per option Exercise Price : Rs. 794/- per option
c. Options vested Nil Nil
d. Options exercised Nil Nil
e. The total number of shares NA NA
arising as a result of exercise
of the options
f. Options lapsed Nil Nil
g. Variation of terms of options Nil Nil
h. Money realised by exercise NA NA
of options
i. Total number of options
in force:
– Vested Nil Nil
– Unvested 99,010 69,060
j. Employee wise details of
options granted to:
i. Senior Managerial Personnel
Mr. S. Misra, 32,640 51,650
Managing Director
ii. Any other employee who Nil Nil
receives a grant in any one
year of option amounting to
5% or more of option
granted during that year
iii. Identified employees who Nil Nil
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
k. Diluted Earnings Per Share
(EPS) pursuant to issue of shares
on exercise of option calculated NA
in accordance with Accounting
Standard (AS) 20
‘Earning Per Share’

58
CMYK

l. Where the company has The Company has calculated the employee compensation cost using the
calculated the employees intrinsic value method of accounting to account for options issued under the
compensation cost using the ESOS – 2006.
intrinsic value of the
stock options:
i. the difference between the Employee compensation cost:
employee compensation cost - intrinsic value based Rs. 0.77 crores
so computed and the - fair value based Rs. 1.84 crores
employee compensation cost
that shall be recognised if it Difference Rs. 1.07 crores
had used the fair value of
the options shall be disclosed.
ii. The impact of this difference: Reported Adjusted
– on profits Net Profit Rs. 1,007.61 crores Rs. 1,006.54 crores

– EPS Basic: Rs. 80.94 Rs. 80.86

Diluted: Rs. 80.91 Rs. 80.83
m. Weighted average exercise
prices of options:
i. equal to market price of the —
stock
ii. less than market price of the Rs. 683/-
stock
Weighted average fair
values of options
i. equal to market price of the
stock —
ii. less than the market price
of the stock. Rs. 462/-
n. A description of the method
used during the year to estimate Black – Scholes Method
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 8%
ii. Expected life Period up to vesting plus the average of the exercise period corresponding to
each vesting.
iii. Expected volatility 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%
iv. Expected dividend Adjustment of the closing price of the Company’s share on the NSE for the
expected dividend yield over the expected life of the options (dividend for FY
2006-07 and a growth factor have been considered, which are then discounted
and an average present value of dividend ascertained)
v. The price of the underlying Rs. 829/-
share in the market at the
time of option grant.

59
CMYK

ANNEXURE I I
DISCLOSURES OF PARTICULARS WITH RESPECT TO CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO AS REQUIRED UNDER THE COMPANIES (DISCLOSURE OF
PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988
A. CONSERVATION OF ENERGY:
a) Energy Conservation Measures taken
— Installation of Variable Frequency Drives
— Use of fuel efficient and higher capacity mining equipments
— Optimisation of Grinding Media size distribution in mills
— Close circuiting of cement mills
— Cooler Gas waste heat recovery system installed
b) Additional investments and proposals if any, being implemented for reduction
of consumption of energy
— Close circuiting of cement mills
— Installation of Roller Press
— Installation of Vertical roller mill for fuel grinding
— Installation of Dry Fly Ash handling and feeding system
— Modification of clinker characteristic to improve clinker grindability
— Increased Fly Ash absorption and Blended Cement production.
c) Impact of measures at (a) and (b) above for reduction of energy consumption
and consequent impact on the cost of production of goods
The proposals stated above shall result in reduction in power consumption and
recovery of waste heat to use for productive purpose thereby reduction in cost.
d) Total 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.

60
CMYK

FORM - A
(See Rule 2)
Form for disclosure of particulars with respect to conservation of energy
A. POWER AND FUEL CONSUMPTION
Current Year Previous Year
2007-08 2006-07
1. Electricity
(a) Purchased
Units 000 Kwh 923400 847582
Total Amount Rs. crores 432.69 405.70
Rate/unit Rs. 4.69 4.79
(b) Own generation*
(i) Through Diesel generator
Units 000 Kwh 176961 188908
Units (Kwh) per Ltr. of fuel oil 3.96 4.03
Cost/Unit Rs. 5.62 4.91
(ii) Through Steam Turbine/Generator
Units 000 Kwh 316750 309571
Units(Kwh) per kg of coal 0.70 0.73
Cost/Unit Rs. 1.73 1.40
(iii) Through Steam Turbine/Generator
Units 000 Kwh 5527 64249
Units(Kwh) per kg of Naphtha 3.80 4.73
Cost/Unit Rs. 15.05 7.40
(iv) Waste Heat Recovery system
Units 000 Kwh 19064 477.05
Cost/Unit Rs. 0.35 0.25
2. Coal (Slack,Steam & ROM including lighting Coal)
For Co-generation of Steam & Power Tonnes 454839 425246
Total Cost Rs. crores 46.95 35.23
Average rate Rs./Tonnes 1032 828
For Process in Cement Plants
Quantity Tonnes 2157186 1991666
Total Cost Rs. crores 650.76 543.99
Average rate Rs./Tonnes 3017 2731
3. Furnace Oil (Including Naphtha)
Quantity K. Ltrs 47020 66184
Total amount Rs. crores 86.70 122.70
Average rate Rs./K ltr 18438 18539
4. Light Diesel Oil (LDO)
Quantity K. Ltrs 1332 1431
Total amount Rs. crores 3.70 4.24
Average rate Rs./K ltr 27765 29626
5. High Speed Diesel Oil (HSD)
Quantity K. Ltrs 358 265
Total amount Rs. crores 1.20 0.95
Average rate Rs./K ltr 33531 35661
B. CONSUMPTION PER UNIT OF PRODUCTION
Electricity # Kwh /T of Cement 84.69 86.93
Furnace oil $ Ltr /T of Clinker 0.11 0.10
Coal Kcal /Kg of Clinker 713 707
* Excludes Auxillary & Wheeling
# Excludes non production power consumption
$ Furnace oil used for kiln light up

61
CMYK

FORM - B
(See Rule 2)
Form for disclosure of particulars with respect to absorption
RESEARCH AND DEVELOPMENT (R&D)

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

Evaluation of use of :

• Mineralisers

• Performance improver to enhance quality

• Higher % of Fly Ash Content in PPC without affecting quality

• CFD technique for optimising Plant operations

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

The above initiatives have resulted in increase in production, energy efficiency, resources conservation
and reduction in related cost of production.

3. Future plan of action

• Commercialisation of alternative fuels

• Optimisation of chemistry of raw mix and fuel mix to improve mines life

• Installation of waste heat recovery system for power generation

(Rs. in crores)
4. Expenditure on R&D 2007-08 2006-07
a. Capital expenditure 0.53 1.12
b. Recurring expenditure 8.82 4.90
c. Total expenditure 9.36 6.02
d. Total R & D expenditure as % of turnover 0.17 0.12
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

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

• Participation in national and international conferences

• Imparting training to personnel by foreign technicians in various manufacturing techniques by

foreign and Indian experts and technology suppliers

2. Benefits derived as a result of the above efforts:

• Improvement in existing processes and reducing consumption of scarce raw materials and fuel

• Cost reduction

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

62
CMYK

AUDITORS’ REPORT
TO THE MEMBERS OF ULTRATECH CEMENT LIMITED
1. We have audited the attached Balance Sheet of UltraTech Cement Limited as at March
31, 2008, the Profit and Loss Account and the Cash Flow Statement of the Company 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 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 (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:
(a) we have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the
Company so far as it appears from our examination of those books and proper returns
adequate for the purpose of our audit have been received from the branches not visited
by us;
(c) the reports of the auditors of the branches have been submitted to us and the same have
been considered by us in preparing this report;
(d) 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 with the audited
returns received from the branches;
(e) 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;
(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 conformity with the
accounting principles generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2008;

63
CMYK

AUDITORS’ REPORT
(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 the Cash Flow Statement, of the cash flows of the Company for the
year ended on that date.
5. On the basis of the written representations from the directors as on March 31, 2008 taken
on record by the Board of Directors, we report that none of the directors is disqualified as
on March 31, 2008 from being appointed as a director under Section 274 (1) (g) of the
Companies Act, 1956.

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

Chartered Accountants Chartered Accountants

B. P. Shroff Atul B. Desai

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

Mumbai, April 22, 2008

64
CMYK

ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in paragraph 3 of our report of even date)
(i) The nature of the Company’s business / activities during the year was such that clauses
(x), (xii), (xiii), (xiv), (xviii) and (xx) of CARO are not applicable.
(ii) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) 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.
(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.
(iii) In respect of its inventories:
(a) As explained to us, inventories were physically verified during the year by the
Management at reasonable intervals.
(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.
(iv) According to the information and explanations given to us, the Company has not granted
or taken secured or unsecured loans to / from companies, firms or other parties covered
in the Register maintained under Section 301 of the Companies Act, 1956. Accordingly
clauses (iii) (b) to (d), (f) and (g) of CARO are not applicable.
(v) In our opinion and according to the information and explanations given to us, there are
adequate internal control systems commensurate with the size of the Company and the
nature of its business for the purchase of inventory and fixed assets and for the sale of
goods and services. We have not observed any major weaknesses in such internal
controls.
(vi) To the best of our knowledge and belief and according to the information and explanations
given to us, there were no contracts or arrangements particulars of which that needed to
be entered in the Register maintained under Section 301 of the Companies Act, 1956.

65
CMYK

ANNEXURE TO THE AUDITORS’ REPORT

(vii) In our opinion and according to the information and explanations given to us, the
Company has not accepted deposits in terms of the provisions of Sections 58A and
58AA or any other relevant provisions of the Companies Act, 1956.
(viii) In our opinion, the Company has an adequate internal audit system commensurate with
the size and the nature of its business.
(ix) We have broadly reviewed the books of account and records maintained by the Company
relating to the manufacture of cement, pursuant to the order made by the Central
Government for the maintenance of cost records under Section 209(1)(d) of the Companies
Act, 1956 and are of the opinion that prima facie the prescribed accounts and records
have been made and maintained. We have, however, not made a detailed examination of
the records with a view to determining whether they are accurate or complete.
(x) In respect of Statutory dues:
(a) According to the information and explanations given to us, 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, Wealth Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other
material statutory dues with the appropriate authorities during the year.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at March 31, 2008 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, details of disputed Sales
Tax, Income Tax, Customs Duty, Wealth Tax, Service Tax, Excise Duty and Cess
which have not been deposited as on March 31, 2008 on account of any dispute are
given below:
Name of statute Nature of the dues Amount Period to which Forum where dispute
(Rs. in Crores) the amount relates is pending
(Assessment Years)

Income Tax Act Income Tax 0.09 2005-2006 Assessing Officers

Value Added Value Added 18.25 2000-2005 Supreme Court

Tax Act Tax and penalty 54.79 2005-2006, High Court
2007-2008

Sales Tax Act Sales Tax and 6.90 1997-1998, High Court
interest 2000-2001,
2005-2006
15.26 1985-1992, Tribunal (s)
1993-1994,
1995-2006
4.22 1993-2007 Appellate Authorities
1.33 2005-2007 Assessing Officers

66
CMYK

ANNEXURE TO THE AUDITORS’ REPORT

Name of statute Nature of the dues Amount Period to which Forum where dispute
(Rs. in Crores) the amount relates is pending
(Assessment Years)
Central Excise Excise Duty, 3.79 1998-1999 High Court
Act penalty and 13.31 1995-2007 Tribunal (s)
interest 1.91 1994-1996, Appellate Authorities
2001-2004,
2005-2008
2.43 1996-1997, Assessing Officers
1998-1999,
2003-2005,
2006-2008

Service Tax Service Tax 0.85 2004-2006 Tribunal (s)

Act 2.97 2004-2007 Appellate Authorities
0.01 2005-2007 Assessing Officers

Customs Act Custom Duty and 0.11 2001-2002 Supreme Court

penalty
(xi) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in the repayment of dues to financial institutions, banks and
debenture holders.
(xii) In our opinion and according to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from a bank or financial
institution.
(xiii) To the best of our knowledge and belief and according to the information and explanations
given to us, in our opinion, term loans availed by the Company were, prima facie,
applied by the Company during the year for the purposes for which the loans were
obtained, other than temporary deployment pending application.
(xiv) 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, prima
facie, not been used during the year for long term investment.
(xv) According to the information and explanations given to us and the records examined by
us, security / charges have been created in respect of the debentures issued.
(xvi) To the best of our knowledge and belief and according to the information and explanations
given to us, no fraud on or by the Company was noticed or reported during the year.

For DELOITTE HASKINS & SELLS For G.. P. KAPADIA & CO.
Chartered Accountants Chartered Accountants
B. P. Shroff Atul B. Desai
Partner Partner
(Membership No.34382) (Membership No.30850)
Mumbai, April 22, 2008

67
CMYK

BALANCE SHEET AS AT MARCH 31, 2008

Rs. in Crores
As at
Schedules March 31, 2007
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 124.49 124.49
Employees Stock Options Outstanding 1B 0.77 -
Reserves and Surplus 2 2,571.73 1,639.29
2,696.99 1,763.78
Loan Funds
Secured Loans 3 982.66 1,151.25
Unsecured Loans 4 757.84 427.38
1,740.50 1,578.63
Deferred Tax Liabilities (net) 542.35 560.26
TOTAL 4,979.84 3,902.67

APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 4,972.60 4,784.70
Less: Depreciation 2,472.14 2,267.42
Net Block 2,500.46 2,517.28
Capital Work-in-Progress 2,283.15 696.95
4,783.61 3,214.23
Investments 6 170.90 483.45
Current Assets, Loans and Advances
Inventories 7 609.76 433.58
Sundry Debtors 8 216.61 183.50
Cash and Bank Balances 9 100.69 89.59
Loans and Advances 10 376.83 253.50
1,303.89 960.17
Less:
Current Liabilities and Provisions
Current Liabilities 11 1,153.01 736.71
Provisions 12 125.55 18.47
1,278.56 755.18
Net Current Assets 25.33 204.99
TOTAL 4,979.84 3,902.67
Accounting Policies and Notes on Accounts 21 & 22
In terms of our report attached. KUMAR MANGALAM BIRLA
Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

68
CMYK

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2008
Rs. in Crores
Previous
Schedules Year
INCOME
Gross Sales 6,286.24 5,484.04
Less: Excise Duty 777.02 573.52
Net Sales 5,509.22 4,910.52
Interest & Dividend Income 13 37.47 29.82
Other Income 14 62.38 31.64
Increase / (Decrease) in Stocks 15 26.63 (32.54)
5,635.70 4,939.44
EXPENDITURE
Raw Materials Consumed 16 536.77 397.23
Manufacturing Expenses 17 1,824.91 1,649.76
Purchase of Finished Products 13.68 182.43
Payments to and Provisions for Employees 18 171.55 117.22
Selling, Distribution, Administration and
Other Expenses 19 1,282.25 1,118.05
Interest 20 75.67 86.83
Depreciation and Obsolescence 237.23 226.25
4,142.06 3,777.77
Less: Self Consumption of Cement {Net of Excise Duty
Rs. 5.13 Crores. (Previous Year Rs. 1.14 Crores)} (13.37) (4.52)
4,128.69 3,773.25
Profit Before Tax Expenses 1,507.01 1,166.19
Income Tax Expenses
Provision for Current Tax {including provision for Wealth Tax
Rs. 0.18 Crore (Previous year Rs. 0.11 Crore) and Interest of 510.24 396.00
Rs. 4.25 Crores (Previous Year Rs. 0.62 Crore)}
Deferred Tax (16.71) (16.70)
Provision for Fringe Benefit Tax 5.87 4.61
Profit After Tax 1,007.61 782.28
Balance brought forward from Previous Year 775.16 180.57
Profit Available for Appropriation 1,782.77 962.85
Appropriations
Interim Dividend paid - 49.79
Proposed Dividend 62.24 -
Corporate Dividend Tax 10.58 6.98
Debenture Redemption Reserve (8.17) 30.92
General Reserve 120.00 100.00
Balance carried to Balance Sheet 1,598.12 775.16
1,782.77 962.85
Basic Earnings Per Equity Share (in Rs.) {See Note B 19(A)} 80.94 62.84
Diluted Earnings Per Equity Share (in Rs.) {See Note B 19(B)} 80.91 62.84
Accounting Policies and Notes on Accounts 21 & 22
In terms of our report attached. KUMAR MANGALAM BIRLA
Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

69
CMYK

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2008
Rs. in Crores
A Cash Flow from Operating Activities: March 31, 2008 March 31, 2007
Profit Before tax 1,507.01 1,166.19
Adjustments for:
Depreciation and Obsolescence 237.23 226.25
Employees Compensation Expenses under ESOS 0.77 -
Bad Debts Written-off 1.79 0.76
Provision for Retirement Benefits 7.40 4.72
Provision for Mines Restoration 1.87 1.64
Interest & Dividend Income (37.47) (29.82)
Interest Expense 75.67 86.83
Unrealised Foreign Exchange (Gain)/Loss (8.97) (2.73)
(Profit)/Loss on Sale of Fixed Assets 1.18 0.05
(Profit)/Loss on Sale of Investment (1.28) (0.26)
Operating Profit Before Working Capital Changes 1,785.20 1,453.63
Adjustments for:
(Increase)/decrease in Inventories (176.18) (54.01)
(Increase)/decrease in Sundry Debtors (34.90) (11.71)
(Increase)/decrease in Loans and Advances (134.73) (79.85)
Increase/(decrease) in Trade Payables and other Liabilities 416.14 222.27
Cash Generated from Operations 1,855.53 1,530.33
Taxes paid (480.27) (417.24)
Net Cash from Operating Activities (A) 1,375.26 1,113.09
B Cash Flow from Investing Activities:
Purchase of Fixed Assets (1,798.89) (764.88)
Sale of Fixed Assets 5.80 0.41
(Increase) / decrease in Current Investments 312.34 (311.00)
Profit on Sale of Investments 1.28 0.26
Interest and Dividend Received 37.68 29.76
Net Cash used in Investing Activities (B) (1,441.79) (1,045.45)
C Cash Flow from Financing Activities:
Repayment of Long Term Borrowings (285.00) (76.00)
Proceeds from Long Term Borrowings 161.55 200.43
Proceeds of Short Term Borrowings (Net) 290.11 6.76
Interest paid (89.03) (89.21)
Dividend Paid - (71.58)
Corporate Dividend Tax - (10.04)
Net Cash Generated / (Used) in Financing Activities (C) 77.63 (39.64)
Net Increase in Cash and Cash Equivalents (A + B + C) 11.10 27.99
Cash and Cash Equivalents at the Beginning of the Year 89.59 61.60
Cash and Cash Equivalents at the End of the Year 100.69 89.59
Notes:
1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard - 3
issued by the Institute of Chartered Accountants of India.
2. Purchase of fixed assets includes movements of capital work-in-progress between the beginning and the end
of the year.
3. Cash and cash equivalents represent cash and bank balances.
4. Previous year’s figures regrouped / recasted wherever necessary.
In terms of our report attached. KUMAR MANGALAM BIRLA
Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

70
CMYK

SCHEDULES
Rs. in Crores
Previous
SCHEDULE 1A Year
SHARE CAPITAL
Authorised
130,000,000 Equity shares of Rs. 10 each 130.00 130.00

Issued, Subscribed and Paid -up 124.49 124.49

124,485,879 Equity shares of Rs. 10 each fully paid-up. (Previous Year 124,485,879)
(a) 99,521,437 Equity shares of Rs.10 each issued as fully paid-up
for acquiring the Cement business pursuant to Scheme of
Arrangement without payment being received in cash;
(b) 87,258 Equity shares of Rs. 10 each issued as fully paid-up to
shareholders of erstwhile Narmada Cement Company Limited
(NCCL) pursuant to a Scheme of Amalgamation without
payment being received in cash.(Previous Year 87,258);
(c) 60,211,890 shares are held by Grasim Industries Limited
(Holding Company), (Previous Year 58,469,134) and 7,477,178
shares are held by Samruddhi Swastik Trading & Investment
Limited (Subsidiary Company of Grasim Industries Limited),
{Previous Year 7,477,178}
124.49 124.49

SCHEDULE 1B
EMPLOYEES STOCK OPTIONS OUTSTANDING
Employees Stock Options Outstanding 2.45 -
Less: Deferred Employees Compensation Expenses 1.68 -
0.77 -

Outstanding Employees Stock Options exercisable into 168,070 Equity Shares of Rs.10 each fully paid-up.
(See Note B 18)

SCHEDULE 2
RESERVES & SURPLUS Rs. in Crores
Balance Additions Deduction/ Balance
as at during Adjustments as at
31st the during 31st
March, 07 year the year March, 08
Capital Reserve 25.02 - - 25.02
Cash Subsidy Reserve 0.10 - - 0.10
Debenture Redemption Reserve 169.80 - (8.17) 161.63
General Reserve 669.21 120.00 (2.35)* 786.86
Surplus as per Profit and Loss Account 775.16 1,007.61 (184.65) 1,598.12
1,639.29 1,127.61 (195.17) 2,571.73
Previous Year 913.78 913.20 (187.69) 1,639.29

*Adjustment on account of transitional provision of AS 15 (Revised) (See Note B 16b).

71
CMYK

SCHEDULES
Rs. in Crores
Previous
Year
SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures (See Note B 4a) 759.32 943.40
Loans from Banks:
Cash Credits / Working Capital Borrowings from Banks Secured by
Hypothecation of Stocks and Book Debts of the Company 143.10 20.91
Term Loans (See Note B 4b) 80.24 186.94
982.66 1,151.25
SCHEDULE 4
UNSECURED LOANS
Short Term:
From Banks 170.19 -
Long Term:
From Banks 262.90 173.88
Sales Tax Deferment Loans 324.75 253.50

757.84 427.38
SCHEDULE 5
FIXED ASSETS Rs. in Crores
Particulars Gross Block Depreciation Net Block

As at Additions Deductions/ As at As at For the Deductions/ Upto As at As at

01.04.07 Adjustments 31.03.08 01.04.07 yearAdjustments 31.03.08 31.03.08 31.03.07
Freehold Land 73.25 8.20 - 81.45 - - - - 81.45 73.25
Leasehold Land 20.29 0.59 - 20.88 5.57 0.59 - 6.16 14.72 14.72
Buildings 484.18 25.60 0.83 508.95 152.56 14.16 0.46 166.26 342.69 331.62
Railway Sidings 159.66 - - 159.66 67.40 7.48 - 74.88 84.78 92.26
Plant and Machinery 3,872.48 171.47 34.41 4,009.54 1,921.36 198.37 21.41 2,098.32 1,911.22 1,951.12
Furniture and Fixtures 83.12 16.53 2.45 97.20 47.38 6.74 1.94 52.18 45.02 35.74
Jetty 80.60 - - 80.60 67.16 0.96 - 68.12 12.48 13.44
Vehicles 11.12 5.08 1.88 14.32 5.99 1.44 1.21 6.22 8.10 5.13

Total 4,784.70 227.47 39.57 4,972.60 2,267.42 229.74 25.02 2,472.14 2,500.46 2,517.28

Previous year 4,605.38 206.83 27.51 4,784.70 2,068.21 219.57 20.36 2,267.42

Add: Capital Work-in-Progress {includes advances of Rs. 388.75 Crores (Previous Year Rs. 346.12 Crores)} 2,283.15 696.95
4,783.61 3,214.23
Notes:
Rs. in Crores
A) Depreciation for the year 229.74
Add: Obsolescence 7.58
Less: Depreciation transferred to Pre-operative Expenses (0.09)
Depreciation as per Profit and Loss Account 237.23
B) 1. Leasehold Land includes Mining Rights.
2. Cost of Leasehold Land includes Rs. 6.09 Crores (Previous year Rs. 6.09 Crores) for which the lease
agreement has not been executed.
3. Cost of Plant and Machinery includes Rs. 29.89 Crores (Previous year Rs. 29.89 Crores) relating to
railway wagons given on operating lease to the Railways under “Own Your Wagon Scheme”.
4. Fixed Assets includes assets costing Rs. 127.83 Crores (Previous Year Rs. 123.84 Crores) not owned by
the Company.
5. Fixed Assets costing Rs. 26.72 Crores (Previous Year Rs. 26.72 Crores) are held on Co-ownership with
other Company.
6. The title deeds of some of the immovable properties transferred pursuant to the Scheme of Arrangement
are yet to be transferred in the name of the Company.

72
CMYK

SCHEDULES
Rs. in Crores
Previous
SCHEDULE 6 Year
INVESTMENTS - At Cost
LONG TERM (TRADE)
Government and Trust Securities -Unquoted - -
(Rs. 10,000, Previous Year Rs. 10,000)
Pledged as security deposit
Shares in Subsidiary Companies- Unquoted
Fully paid-up Equity Shares of Rs. 10 each
50,000 Dakshin Cements Limited (Previous Year 50,000) 1.21 1.21
Fully paid-up Equity Shares of Sri Lankan Rupee 10 each
40,000,000 UltraTech Ceylinco (Pvt.) Limited.
(Previous Year 40,000,000) 23.03 23.03
24.24 24.24
Others -Unquoted
2,000,000 4.5% Cumulative Non Convertible Redeemable
Preference Shares of Rs. 100 each in Aditya Birla Health
Services Limited. (Previous Year Nil) 20.00 -
44.24 24.24
CURRENT - Unquoted (Other Investments)
Units of Debt Schemes of Mutual Funds:
Description No. of Units Face Value Value
a) Liquid Scheme - Dividend Plan:
Birla Sunlife Mutual Fund
(Previous year 24,001,347 units) - 10 - 24.00
LIC Mutual Fund (Previous year Nil) 1,821,826 10 2.00 -

b) Income Scheme - Dividend Plan:

Birla Sunlife Mutual Fund (Previous year Nil) 42,565,128 10 45.04 -
Prudential ICICI Mutual Fund (Previous year Nil) 14,105,173 10 14.82 -

c) Fixed Maturity Plan - Dividend Plan:

Birla Sunlife Mutual Fund
(Previous year 54,941,544 units) - 10 - 54.99
UTI Mutual Fund (Previous year 80,000,000 units) - 10 - 80.00
Prudential ICICI Mutual Fund
(Previous year 25,136,000 units) - 10 - 25.14
Kotak Mahindra Mutual Fund
(Previous year 35,000,000 units) - 10 - 35.00
Standard Chartered Mutual Fund
(Previous year 40,000,000 units) - 10 - 40.00
LIC Mutual Fund (Previous year 20,000,000 units) - 10 - 20.00
Tata Mutual Fund (Previous year 15,000,000 units) - 10 - 15.00

73
CMYK

SCHEDULES
CURRENT - Unquoted (Continued).... Rs. in Crores
Units of Debt Schemes of Mutual Funds: Previous
Year
Description No. of Units Face Value Value
ING Vysya Mutual Fund
(Previous year 10,000,000 units) - 10 - 10.00
Lotus Mutual Fund (Previous year 15,077,418 units) - 10 - 15.08
Deustche Mutual Fund (Previous year 5,000,000 units) - 10 - 5.00
Principal Mutual Fund (Previous year 15,000,000 units) - 10 - 15.00
Reliance Mutual Fund (Previous year 50,000,000 units) - 10 - 50.00
ABN Amro Mutual Fund (Previous year 10,000,000 units) - 10 - 10.00
HDFC Mutual Fund (Previous year Nil) 19,800,000 10 19.80 -

d) Fixed Maturity Plan - Growth Plan:

Prudential ICICI Mutual Fund
(Previous year 25,000,000 units) - 10 - 25.00
Birla Sunlife Mutual Fund
(Previous year 25,000,000 units) 25,000,000 10 25.00 25.00
UTI Mutual Fund (Previous year 10,000,000 units) 10,000,000 10 10.00 10.00
Lotus India Mutual Fund (Previous year Nil) 10,000,000 10 10.00 -
126.66 459.21
170.90 483.45

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

(A) Liquid Schemes (Dividend Plan) - ABN Amro Mutual Fund-60,999,640; Birla Sunlife Mutual Fund -
689,554,172; DSP Merrill Lynch Mutual Fund -4,497,550; Deutsche Mutual Fund -153,815,277;
Franklin Templeton Mutual Fund -192,904,744; HDFC Mutual Fund -258,824,980; HSBC Mutual Fund -
99,302,443; ICICI Prudential Mutual Fund -2,318,947,570; ING Mutual Fund -64,976,309; JM Financial
Mutual Fund -134,954,167; JP Morgan Mutual Fund- 9,991,108; Kotak Mahindra Mutual Fund -113,301,283;
LIC Mutual Fund -817,175,417; Lotus India Mutual Fund -43,961,579; Principal Mutual Fund -175,783,786;
Reliance Mutual Fund -156,227,395; SBI Mutual Fund -20,571,006; Standard Chartered Mutual Fund -
105,521,090; Sundaram BNP Paribas Mutual Fund-58,695,029; TATA Mutual Fund -56,702,889;
UTI Mutual Fund -119,412,720.

(B) Floating Rate Schemes (Dividend Plan) - UTI Mutual Fund- 48,810; Birla Sunlife Mutual Fund- 9,992,605

(C) Short Term Schemes (Dividend Plan) - Franklin Templeton Mutual Fund -98,933

(D) Dynamic Bond Fund Schemes (Dividend Plan) - Birla Sunlife Mutual Fund- 48,151,346.

(E) Fixed Maturity Plans (Dividend Plan) - ABN AMRO Mutual Fund -115,000,000; Birla Sunlife Mutual
Fund -39,978,148; DSP Mutual Fund- 200,000; Deutsche Mutual Fund -15,000,000; HDFC Mutual
Fund- 15,000,000; HSBC Mutual Fund- 25,000,000; JM Financial Mutual Fund- 25,000,000; Kotak Mahindra
Mutual Fund -50,000,000; LIC Mutual Fund -45,000,000; Lotus India Mutual Fund- 35,000,000;
ICICI Prudential Mutual Fund -10,000,000; Reliance Mutual Fund -39,974,039; SBI Mutual Fund -
50,000,000; Standard Chartered Mutual Fund -45,000,000; Sundaram BNP Paribas Mutual Fund- 5,000,000;
Tata Mutual Fund- 10,000,000; UTI Mutual Fund -50,000,000.

74
CMYK

SCHEDULES
Rs. in Crores
Previous
SCHEDULE 7 Year
INVENTORIES
Stores & Spare parts, Packing Material, Fuels and Scrap 408.03 275.10
Raw Materials 43.26 23.43
Work-in-progress 102.35 75.60
Finished Goods 56.12 59.45
609.76 433.58
SCHEDULE 8
SUNDRY DEBTORS
Exceeding six months:
Good and Secured 6.18 5.65
Good and Unsecured 3.13 3.15
9.31 8.80
Others:
Good and Secured 97.99 107.37
Good and Unsecured 109.31 67.33
207.30 174.70
216.61 183.50
SCHEDULE 9
CASH AND BANK BALANCES
Cash Balance on Hand {Including Cheques on Hand
Rs. 17.62 Crores; (Previous Year Nil)} 18.53 0.18
Bank Balance with Scheduled Banks:
In Current Accounts 82.16 89.41
In Fixed Deposit Accounts {(Rs. 24,548),
(Previous Year Rs. 23,085)} - -
100.69 89.59
SCHEDULE 10
LOANS AND ADVANCES
Secured and Considered Good
Loan against mortgage of House Property 1.64 1.57
Unsecured
Considered Good:
Loans and Advances to Subsidiary Company 0.35 0.13
Deposits and Balances with Government and other Authorities
(including accrued interest) 151.33 69.04
Advances recoverable in cash or in kind or
for value to be received 223.51 168.35
Advance Tax (Net of Provision) - 14.41
Considered Doubtful:
Advances recoverable in cash or in kind from others 0.22 0.22
375.41 252.15
Less: Provision for doubtful Loans and Advances 0.22 0.22
375.19 251.93
376.83 253.50

75
CMYK

SCHEDULES
Rs. in Crores
Previous
SCHEDULE 11 Year
CURRENT LIABILITIES
Sundry Creditors
Dues of Micro, Small and Medium Enterprises 0.21 0.47
(To the extent identified with available information)
Parent Company and Fellow Subsidiaries 0.60 0.09
Others 775.98 463.43
776.79 463.99
Security and Other Deposits 149.85 112.99
Advances from Customers 104.73 53.93
Investor Education and Protection Fund, Amount not due:
Unpaid Dividend 0.37 0.39
Other Liabilities 89.00 73.37
Interest accrued but not due on loans 32.27 32.04
1,153.01 736.71
SCHEDULE 12
PROVISIONS
Provision for Retirement Benefits 27.79 16.83
Provision for Mines Restoration 3.51 1.64
Provision for Tax (Net of Advance Tax) 21.43 -
Proposed Dividend 62.24 -
Corporate Dividend Tax 10.58 -
125.55 18.47
SCHEDULE 13
INTEREST & DIVIDEND INCOME
Interest (Gross) on others 5.92 3.15
(Tax Deduted at Source Rs. 0.57 Crore, Previous Year Rs. 0.47 Crore)
Dividend from Current Investments 28.75 23.12
Dividend from a Subsidiary 2.80 3.55
37.47 29.82
SCHEDULE 14
OTHER INCOME
Lease Rent 0.68 1.28
Insurance Claim 0.26 0.36
Profit on Sale of Current Investments (Net) 1.28 0.26
Exchange Rate Difference (Net) 11.00 3.19
Miscellaneous Income / Receipts 49.16 26.55
62.38 31.64
SCHEDULE 15
INCREASE / (DECREASE) IN STOCKS
Closing Stock
Work-in-progress 102.35 75.60
Finished Goods 56.12 59.45
158.47 135.05
Opening stock
Work-in-progress 75.60 105.97
Finished Goods 59.45 59.84
135.05 165.81
Add: Increase / (Decrease) in Excise Duty on Stocks 3.21 (1.78)
Increase / (Decrease) in Stocks 26.63 (32.54)

76
CMYK

SCHEDULES
Rs. in Crores
Previous
SCHEDULE 16 Year
RAW MATERIALS CONSUMED
Opening Stock 23.43 12.74
Purchase and Incidental Expenses 556.60 407.92
580.03 420.66
Less: Closing Stock 43.26 23.43
536.77 397.23
SCHEDULE 17
MANUFACTURING EXPENSES
Freight and Handling expense on Clinker transfer 133.68 126.97
Consumption of Stores, Spare Parts, Components and Packing Materials 348.21 295.88
Power & Fuel Consumed 1,253.26 1,138.32
Hire Charges of Plant & Machinery and others 6.26 5.78
Repairs to Plant & Machinery 61.52 60.43
Repairs to Buildings 5.12 5.82
Repairs to Others 16.86 16.56
1,824.91 1,649.76
SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 130.30 87.16
Contribution to and Provisions for Provident and other Funds 20.90 13.53
Compensation Expenses under ESOS 0.77 -
Welfare Expenses 19.58 16.53
171.55 117.22
SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission paid to Distributors and Selling Agents 14.72 11.57
Cash Discount 57.52 37.35
Freight, Handling and other Expenses 969.26 882.65
Advertisement and Sales Promotions 101.52 74.88
Insurance 9.28 11.17
Rent (including Lease Rent) 13.26 9.67
Rates and Taxes 29.86 16.03
Stationery, Printing and Communication Expenses 9.90 8.68
Travelling and Conveyance 21.61 19.09
Legal and Professional Charges 16.23 15.51
Bad Debts and Advances Written off 1.79 0.76
Directors’ Fees 0.12 0.18
Power (other than related to Manufacturing Activity) 1.79 1.53
Loss on Sale of Fixed Assets (Net) 1.18 0.05
Contribution for Political Party (General Electoral Trust) 2.80 -
Miscellaneous Expenses 31.41 28.93
1,282.25 1,118.05
SCHEDULE 20
INTEREST
On Debentures and Fixed Loans 62.38 79.18
On other Loans 13.29 7.65
75.67 86.83

77
CMYK

SCHEDULES
SCHEDULE 21
ACCOUNTING POLICY AND NOTES ON ACCOUNTS
A Significant Accounting Policies:
1. Basis of Accounting:
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 in conformity with the generally accepted accounting principles
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) less accumulated
depreciation / amortisation.
4. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rate prevailing on the date of the transaction. Foreign
currency monetary assets and liabilities at the balance sheet date are restated at the year end rate. Premium
in respect of forward contracts is recognised over the life of the contracts. Exchange differences in case of
borrowed funds and liabilities in foreign currency for projects are adjusted to the cost of fixed assets, till the
commissioning of the project and thereafter recognised in the Profit and Loss Account. Any other exchange
difference is dealt with in the Profit and Loss account.
5. Financial Derivatives:
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
to be held to maturity. These are accounted on the date of settlement.
6. Treatment of Expenditure during Construction Period:
Expenditure during construction period is included under Capital Work-in-Progress and the same is allocated
to the respective Fixed Assets on the completion of its construction.
7. Investments:
Current investments are carried at lower of cost or fair value. Long term investments are stated at cost after
deducting provisions made for diminution other than temporary.
8. Inventories:
Inventories are valued at the lower of weighted average cost and net realisable value except waste / scrap
which is valued at net realisable value.
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.
9. 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.

78
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
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.
(Also refer to the policy on Depreciation and Amortisation below)
10. Depreciation and Amortisation:
Depreciation is charged in the accounts on the following basis:
i) Depreciation is provided on the straight-line basis at the rates prescribed in Schedule XIV to the Companies
Act, 1956 except for the following:
a) Motor Cars at 14.14 % per annum except for Motor Cars given to the employees.
b) Motor Cars given to the employees as per the Company’s Scheme is depreciated over the Scheme
period.
c) Personal Computers and Laptops given to the employees as per the Company’s Scheme at 31 %
per annum.
d) Roads, Culverts, Walls, Buildings etc. within factory premises are depreciated at 3.34 %.
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 / deductions is calculated pro-rata from / to the month of addition / deduction.
11. Impairment of Assets:
The carrying amount 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 losses recognised for the asset no longer exists or has decreased.
12. Employee Benefits:
(i) Defined Contribution Plan
Contributions to defined contribution plans are recognised as expense in the Profit and Loss Account,
as they are incurred.

79
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
(ii) Defined Benefit Plan
The obligation in respect of defined benefit plans is determined using projected unit credit method,
with actuarial valuation at the end of each financial year. Actuarial gains/losses 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 Indian government securities as at the balance sheet date for
the estimated term of the obligations.
13. Borrowing Costs:
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of such asset till such time as the asset is ready for its intended use.
A qualifying asset is an asset that necessarily requires 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.
14. Provision for Current and Deferred Tax:
Provision for Current Tax is made on the basis of estimated taxable income for the current accounting
period and 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 a 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.
15. Revenue Recognition:
Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the goods to the
buyer and stated net of sales tax. VAT, trade discounts and rebates but includes excise duty. Income from
services is recognised as they are rendered, based on agreement/arrangement with the concerned parties.
Dividend income on investments is accounted for when the right to receive the payment is established.
Interest income is recognised on time proportion basis. Export Incentives, insurance, railway and other
claims, where quantum of accruals cannot be ascertained with reasonable certainty, are accounted on
acceptance basis.
16. 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.
17. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement 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. Contingent
Liabilities are not recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed,
in the financial statements.
18. Employees Share based payments:
The Company follows intrinsic value method for valuation of Employees Stock Options. Value at the time
of grant of ESOS is considered as compensation expense and is amortised in the Profit and Loss account
over the period of vesting, adjusting for the actual and expected vesting.

80
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
B. Notes on Accounts
1. Contingent Liabilities not provided for in respect of:
Rs. in Crores
Previous
Year
Claims not acknowledged as debts in respect of matters in appeals
(a) Sales tax liability 51.30 80.51
(b) Excise duty 27.35 35.75
(c) Royalty on Limestone / Marl 43.27 43.48
(d) Customs 0.11 0.19
(e) Others 31.82 33.53
2. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of
advances) Rs. 491.32 crores (Previous year Rs. 1,749.10 crores).
3. (i) Derivative Instruments outstanding:
Derivatives for hedging currency and interest rates, outstanding as on March 31, 2008 are as under:
In Millions
Particulars Purpose Currency Current Previous Cross
Year Year Currency
A. Forward Contracts Exports USD 28.97 — Rupees
Buyers Credit USD 18.39 — Rupees
Capital Imports USD — 7.00 Rupees
Capital Imports Euro 9.41 5.70 USD
Buyers Credit JPY 1,845.28 — USD
B. Options (Derivatives) ECB Loan USD 40.00 40.00 Rupees
Buyers Credit JPY 2,506.25 — Rupees
Capital Imports Euro — 2.00 USD
(ii) Un-hedged Foreign Currency exposure:
In Millions
Type of Exposure Currency Current Previous Cross
Year Year Currency
ECB Loan USD 20.00 20.00 Rupees
Buyers Credit USD 24.44 — Rupees
4a) Secured Non-Convertible Debentures : Rs. 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. 8.40% NCDs (Redeemable at par on July 22, 2007) — 45.00
3. 8.30% NCDs (Redeemable at par on September 2, 2012) 25.00 25.00
4. 8.09% NCDs (Redeemable at par on July 25, 2007) — 40.00
5. 6.00 % NCDs (Redeemable at par on March 12, 2009) 225.00 225.00
6. Step up interest NCDs (Redeemable at par on September 16, 2012) 25.00 25.00
7. 6.65% NCDs (Redeemable at par on April 30, 2013) 5.00 5.00
8. 5.78 % NCDs (Redeemable at par on May 11, 2009) 150.00 150.00
9. 6.25% NCDs (Redeemable at par on June 25, 2009) 150.00 150.00
10. 6.70% NCDs (Redeemable at par on June 16, 2008) 50.00 50.00

81
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
Rs. in Crores
Previous
Year
ii) Floating Rate Debentures

1. MIBOR Linked NCD’s (Redeemable at par on August 1, 2007) — 100.00

2. 1 year GoI Security Linked NCD’s (Redeemable at par on June 16, 2008) 50.00 50.00

iii) Discounted Value Debentures

1. Issued as zero coupon at Yield to Maturity of 6.80%
(Carrying amount Rs. 14.32 crores, previous year Rs. 13.40 crores,
Redeemable at par on April 30, 2013) 20.00 20.00
The Company retains the options to purchase the 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. Debentures repurchased have not been kept alive for reissuance as at March 31, 2008.
The Non-Convertible Debentures are secured by way of first charge, having pari passu rights, on the
Company’s immovable/movable properties (save and except book debts and inventory).
b) The other loans of Rs. 80.24 crores (previous year Rs. 186.94 crores) are secured by a first mortgage and
charge on the Company’s immovable properties at certain locations and / or by hypothecation of movables
at those locations (save and except book debts and inventory) both present and future, having pari passu
rights, subject to prior charges, on specific assets in favour of the Company’s Bankers.
5. Loans and Advances includes payment of Rs. 0.96 crore (previous year Nil) towards the preliminary
expenses of Madanpura (North) Coal Co. (Pvt.) Ltd; a proposed Joint Venture for coal mining activities.
6. As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the
following information is disclosed:
Rs. in Crores
Sr. Particulars 2007-08 2006-07
No.
(a) (i) Principal amount remaining unpaid at the end of the accounting year. — 0.74
(ii) Interest due on above. — (Rs. 36,826)
Total (i)+(ii) — 0.74
(b) The amount of interest paid by the buyer along with amount of the
payment made to the suppliers beyond the appointed date. — —
(c) The amount of interest accrued and remaining unpaid
at the end of financial year. 0.04 —
(d) The amount of interest due and payable for the period of delay in
making payment (which have been paid but beyond the due date
during the year) but without adding interest specified under this act. (Rs. 34,787) —
(e) The amount of further interest remaining due and payable in the
succeeding years, until such interest is actually paid. 0.04 —
7. Disclosure as per clause 32 of the listing agreement – loans in the nature of Inter Corporate deposits (ICD)
and trade credit given to subsidiaries:
Rs. in Crores
Name of Subsidiary Companies Amount Outstanding Maximum Balance
Outstanding during the Year
UltraTech Ceylinco (Pvt.) Ltd. 16.66 28.12
Dakshin Cements Ltd. 0.15 0.15

82
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
8. Auditors remuneration (excluding service tax) and expenses charged to the accounts:
Rs. in Crores
a) Statutory Auditors: 2007-08 2006-07
Audit fees 0.32 0.24
Tax audit fees 0.03 0.03
Fees for other services 0.21 0.14
Expenses reimbursed 0.01 0.02
b) Branch Auditors:
Audit fees 0.04 0.04
Fees for other services 0.01 —
Expenses reimbursed (Rs. 10,480, Previous Year Rs. 4,871) — —
c) Cost Auditors:
Audit fees 0.02 0.02
Expenses reimbursed (Rs. 7,645, Previous Year Rs. 7,495) — —
9. Managing Director’s Remuneration:
Rs. in Crores
2007-08 2006-07
Salary 3.93 2.97
Contribution to Provident Fund & Other Funds* 0.36 0.26
Perquisites 0.15 0.13
* Excluding Contribution to Gratuity Fund and provision for leave encashment, as separate figures
cannot be quantified.
10. Segment Reporting :
The Company has one business segment ‘Cement’ as its primary segment. The Company’s operations are
solely situated in India.
Rs. in Crores
Revenue 2007-08 2006-07
Sales:
Domestic 5,005.44 4,241.77
Export 503.78 668.75
Total 5,509.22 4,910.52
11. Disclosure of related parties / related party transactions:
a) List of related parties
Name of the Related Party Nature of Relationship
Grasim Industries Ltd. (Grasim) Holding Company
Sun God Trading & Investment Ltd. Fellow Subsidiary
Samruddhi Swastik Trading & Investment Ltd. (SSITL) Fellow Subsidiary
Shree Digvijay Cement Co. Ltd. (SDCCL) (upto 24.03.2008) Fellow Subsidiary
Harish Cement Ltd. (HCL) Fellow Subsidiary
Grasim Bhiwani Textiles Ltd. (GBTL) (w.e.f. 01.10.2007) Fellow Subsidiary
UltraTech Ceylinco (Pvt.) Ltd. (UCPL) Subsidiary
Dakshin Cements Ltd. (DCL) Wholly Owned Subsidiary
Key Management Personnel (KMP)
Mr S. Misra, Managing Director of the Company

83
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
b) Disclosure of related party transactions:
Rs. in Crores

Sr. Nature of Holding Subsidiary Fellow Subsidiary KMP Total

No. Transaction Company Company Companies

Grasim UCPL SSITL SDCCL GBTL

1. Sale of Goods 44.51 101.72 — 0.05 — — 146.28

(265.07) (139.91) — (0.33) — — (405.31)

2. Purchase of Goods 25.50 — — 2.59 0.03 — 28.12

(191.69) — — (2.41) — — (194.10)

3. Sale of Fixed Assets 5.68 — — — — — 5.68

— — — — — — —

4. Purchase of 0.09 — — — — — 0.09

Fixed Assets (0.21) — — — — — (0.21)

5. Receiving of 0.11 — 0.17 — — 4.44 4.72

Services (0.08) — (0.12) — — (3.36) (3.56)

6. Dividend & other

income received / — 2.80 — — — — 2.80
receivable — (3.55) — (0.04) — — (3.59)

Figures in brackets are pertaining to previous year.

Outstanding Balance as on March 31, 2008

Rs. in Crores

Sr. Nature of Holding Subsidiary Fellow Subsidiary KMP Total

No. Transaction Company Company Companies

Grasim DCL UCPL SDCCL SSITL

1. Loans and Advances 0.51 0.15 0.21 — 0.09 0.50 1.46

— (0.13) — (Rs. 1,276) (0.09) (0.50) (0.72)

2. Debtors — — 16.45 — — — 16.45

(0.27) — (18.92) (Rs. 6,305) — — (19.19)

3. Other Liabilities 1.07 — — — — — 1.07

and Creditors (0.36) — — — — — (0.36)

Figures in brackets are pertaining to previous year.

84
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
12. Leases:
Operating Leases:
i) The Company has taken various plant and machinery under cancellable operating leases. These lease
agreement are generally renewed on expiry.
ii) (a) The Company has taken on non-cancellable operating leases certain assets, the future minimum
lease payments in respect of which, as at March 31, 2008 are as follows:
Rs. in Crores
Minimum Lease Payments Payable 2007-08 2006-07
i. Not later than 1 year 0.08 0.28
ii. Later than 1 year and not later than 5 years — 0.12
iii. Later than 5 years — —
Total Minimum Lease Payable 0.08 0.40
(b) The lease agreements provide for an option to the Company to renew the lease period at the end of
the non-cancellable period. There are no exceptional / restrictive covenants in the lease agreements.
iii) The rental expense in respect of operating leases was Rs. 0.21 crore (Previous Year Rs. 0.36 crore).
13. Deferred Tax Assets and Liabilities as on March 31, 2008 are as under: Rs. in Crores
Particulars Deferred Tax Deferred Tax
(assets)/liabilities Current Year (assets)/ liabilities
as at 01.04.2007 Charge/(Credit) as at 31.03.2008
Deferred Tax Assets:
Provision allowed under tax on payment basis (11.96) (1.64)* (13.60)
(11.96) (1.64) (13.60)
Deferred Tax Liabilities:
Accumulated Depreciation 564.47 (16.27) 548.20
Payments allowed under tax not
expensed in books 7.75 — 7.75
572.22 (16.27) 555.95
Net Deferred Tax Liability 560.26 (17.91) 542.35
*Out of Rs. 1.64 Crores Rs. 1.21 crores adjusted in General Reserve on account of transitional provision of
AS – 15 (Revised 2005)
14. The following expenses are included in the different heads of expenses in the Profit and Loss Account:
Rs. in Crores
2007-08 2006-07
Particulars Raw Power Total Raw Power Total
Materials & Fuel Materials & Fuel
Consumed Consumed Consumed Consumed
Stores and Spares Consumed 36.10 15.85 51.95 40.94 19.62 60.56
Royalty and Cess 94.26 — 94.26 84.04 — 84.04

85
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
15. Movement of provisions during the period as required by Accounting Standard - 29 “Provisions, Contingent
Liabilities and Contingent Asset” issued by the Institute of Chartered Accountants of India:
Mines Restoration Expenditure:
Rs. in Crores
2007-08 2006-07
Opening Balance 1.64 —
Expenditure in current year — —
Provision during the year 1.87 1.64
Closing Balance 3.51 1.64
16. Employee Benefits:
a) Defined Benefit Plans as per Actuarial Valuation on March 31, 2008:
Rs. in Crores
Post
Retirement
Gratuity Medical
(Funded) Pension Benefits
(i) Opening Balance of Present value of
Defined Benefit Obligation 22.35 0.80 0.57
Adjustment of:
Current Service Cost 2.24 — —
Interest Cost 1.80 0.06 0.04
Actuarial Loss / (Gain) 3.44 0.03 (Rs. 3,209)
Benefits Paid (2.42) (0.07) (0.04)
Past Service Cost 0.72 — —
Closing Balance of Present value of
Defined Benefit Obligation 28.12 0.82 0.58
(ii) Change in Fair Value of Assets
Opening Balance of Fair Value of Plan Assets 16.46 — —
Adjustment of:
Expected Return on Plan Assets 2.01 — —
Contribution by the employer / participants 6.14 0.07 0.04
Benefits Paid (2.42) (0.07) (0.04)
Amount lying with the Company 0.47 — —
Closing Balance of Fair Value of Plan Assets 22.66 — —
(iii) Net Asset / (Liability) recognised in the Balance Sheet
Present value of Defined Benefit Obligation (28.12) (0.82) (0.58)
Fair Value of Plan Asset 22.66 — —
Net Asset / (Liability) in the Balance Sheet (5.46) (0.82) (0.58)
(iv) Expenses recognised in the Profit and
Loss Account
Current Service Cost 2.24 — —
Interest Cost 1.80 0.06 0.04
Expected Return on Plan Assets (2.01) — —
Actuarial (Gain) / Loss 3.44 0.03 (Rs. 3,209)
Total Expenses 5.46 0.09 0.04
(v) The major categories of plan assets as a percentage
of total plan
Insurer Managed Funds 100% N.A. N.A.

86
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
Rs. in Crores
Post
Retirement
Gratuity Medical
(Funded) Pension Benefits
(vi) Actuarial Assumptions:
Discount Rate 8.00% 7.70% 7.70%
Turnover Rate 1% - 3% — —
Published rates PA (90) PA (90)
Mortality of LIC 94-96 Annuity Annuity
rates down rates down
by 4 years by 4 years
Salary Escalation Rate 6% — —
Retirement age Staff- 60 Yrs 60 Yrs
Workers – 58 Yrs —
(vii) Basis used to determine Expected Rate of Return 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.
(b) Change in Accounting Policy:
During the year, the Company has decided to adopt Accounting Standard (AS) 15 (Revised 2005)
“Employee Benefits”, issued by the Institute of Chartered Accountants of India. Accordingly the Company
has adjusted Rs. 2.35 crores (net of deferred tax liability of Rs. 1.21 crores) against the General
Reserve in accordance with transitional provision of the said standard.
(c) Defined Contribution Plans:
Amount recognised as an expense and included in Schedule 18 under the head “Contribution to and
Provisions for Provident and other Funds” of Profit and Loss account Rs. 9.64 crores.
(d) Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 5.44 crores.
17. Capital work-in-progress includes:
Rs. in Crores
2007-08 2006-07
Pre-operative expenses pending allocation:
Stores & Spares Consumed 0.29 0.33
Power & Fuel Consumed 0.53 0.63
Salary, Wages, Bonus, Exgratia and Provisions 3.14 1.05
Insurance 0.47 0.15
Exchange Gain (1.22) (2.95)
Depreciation 0.08 0.02
Interest 15.85 0.80
Misc. Expenses 9.76 6.10
Total Pre-operative expenses 28.90 6.13
Less: Income 0.36 —
Add: B/f From Previous Year 6.64 0.51
Total 35.18 6.64

87
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
18. Under the Employees Stock Options Scheme - 2006 (ESOS -2006), the Company has granted 168,070
options to its eligible employees in two tranches, the details are as follows:
(A) Employees Stock Option Scheme :
Particulars Tranche I Tranche II

No. of Options 99,010 69,060

Method of Accounting Intrinsic Value Intrinsic Value

Vesting Plan Graded Vesting - Graded Vesting -

25% every year 25% every year

Exercise Period 5 Years from the 5 Years from the

date of Vesting date of Vesting

Grant Date 23.08.2007 25.01.2008

Grant Price (Rs. per share) 606 794

Market Price on the date of Grant of Option (Rs.) 853 794

Discount on Average Price 30.00% 1.98%

(B) Movement of Options granted :

2007-08

Options outstanding at beginning of the year —

Granted during the year 168,070

Exercised during the year —

Lapsed during the year —

Options outstanding at the end of the year 168,070

Options unvested at the end of the year 168,070

Options exercisable at the end of the year —

(C) 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 Black-Scholes Model.
The Key assumptions in Black-Scholes Model for calculating fair value as on that 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
4. Expected Growth in Dividend — 20%
The weighted average fair value of the option, as on the date of grant, works out to be Rs. 462 per stock
options.

88
CMYK

SCHEDULES
SCHEDULE 21 (Contd.)
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:
Rs. in Crores

Particulars 2007-08
Net Profit (As Reported) 1,007.61
Add: Compensation Expenses under ESOS included in the Net Profit 0.77
Less: Compensation Expenses under ESOS as per Fair Value (1.84)
Net Profit (Fair value basis) 1006.54

Basic Earning Per Share (Reported) – Rs. / Share 80.94

Basic Earning Per Share (Fair value basis) – Rs. / Share 80.86
Diluted Earning Per Share (Reported) – Rs. / Share 80.91
Diluted Earning Per Share (Fair value basis) – Rs. / Share 80.83

19. Earning per Share (EPS):

Particulars 2007-08 2006-07

(A) Basic EPS:

(i) Net Profit attributable to Equity Shareholders (Rs. Crores) 1,007.61 782.28
(ii) Weighted Average number of Equity Shares Outstanding (Nos.) 124,485,879 124,485,879
Basic EPS (Rs.) (i) / (ii) 80.94 62.84
(B) Diluted EPS:
(i) Weighted average number of Equity Shares Outstanding 124,485,879 124,485,879
(ii) Add: Potential Equity Shares on exercise of options 45,852 —
(iii) Weighted average number of Equity Shares Outstanding
for calculation of Diluted EPS (i+ii) 124,531,731 124,485,879
Diluted EPS (Rs.) {(A) (i) } / (iii) 80.91 62.84

Face value of Shares (Rs.) 10 10

20. Figures less than Rs. 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. Previous year’s figures have been regrouped and rearranged wherever necessary to conform to this year’s
classification.

22. Additional information required under Part II of Schedule VI to the Companies Act, 1956 (as certified by
the Executives of the respective Divisions) is as per Schedule 22.

89
CMYK

SCHEDULES
SCHEDULE 22
ADDITIONAL INFORMATION UNDER PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956
1. CAPACITIES AND PRODUCTION:

Product Unit Installed Capacity* Actual Production**

2007-08 2006-07 2007-08 2006-07
Cement Lakh tonnes 182.00 170.00 150.69 146.35

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.
** Excludes Clinker not converted into Cement Production
2. TURNOVER:

Product Unit 2007-08 2006-07

Quantity Value Quantity Value
Rs. in Crores Rs. in Crores
Cement Lakh tonnes 150.19 4,838.88 151.69 4,459.06
Clinker Lakh tonnes 20.87 399.08 25.00 408.79
Others — 271.26 — 42.67
Total 5,509.22 4,910.52

3. INVENTORY:
As at 31.03.2008 As at 31.03.2007
Product Unit Quantity Value Quantity Value
Rs. in Crores Rs. in Crores

Cement Lakh tonnes 2.59 56.12 2.65 59.45

4. RAW MATERIAL, STORES AND SPARE PARTS:

a) Raw Material Consumed:
2007-08 2006-07
Product Unit Quantity Value Quantity Value
Rs. in Crores Rs. in Crores
Limestone* Lakh tonnes 203.08 175.78 201.77 170.61
Slag Lakh tonnes 2.74 10.86 2.55 9.34
Gypsum Lakh tonnes 6.57 82.15 6.19 76.77
Fly Ash Lakh tonnes 20.56 66.52 17.62 51.11
Iron ore Lakh tonnes 2.63 24.51 4.31 47.73
Others — 176.95 — 41.67
Total 536.77 397.23
*Including Royalty and Cess on limestone and other related overheads.

90
CMYK

SCHEDULES
SCHEDULE 22 (Contd.)
b) Purchase of Finished Goods:

2007-08 2006-07
Class of goods Unit Quantity Value Quantity Value
Rs. in Crores Rs. in Crores
Cement Lakh tonnes 0.43 13.64 5.58 182.38
Others — 0.04 — 0.05
Total 13.68 182.43

c) Value of imports (on CIF basis): Rs. in crores

2007-08 2006-07
(i) Raw materials 3.15 9.57
(ii) Fuel, stores and spares 460.97 363.03
(iii) Capital goods 353.51 140.12

d) Value of imported and indigenous raw materials, stores and spare parts consumed:
2007-08 2006-07
Value % Value %
Rs. in Crores Rs. in Crores

Raw materials:
Imported 8.26 1.5 9.57 2.4
Indigenous 528.51 98.5 387.66 97.6

Total 536.77 100.0 397.23 100.0

Stores & spares:
Imported 38.10 9.5 29.06 8.2
Indigenous 362.06 90.5 327.38 91.8
Total 400.16 100.0 356.44 100.0

5. EXPENDITURE IN FOREIGN CURRENCY:

Rs. in Crores
2007-08 2006-07
Freight / Despatch / Demurrage 72.09 67.68
Service Fees 1.28 2.93
Interest 6.84 6.04
Other Matters 0.45 0.46

91
CMYK

SCHEDULES
SCHEDULE 22 (Contd.)
6. EARNINGS IN FOREIGN EXCHANGE:
Rs. in Crores
2007-08 2006-07
Export of goods {Including Rs. 476.94 crores 503.78 668.75
(Rs. 639.73 crores) on FOB basis}
Professional fees 0.06 1.01
Other receipts 17.22 3.74

7. DIVIDENDS REMITTED IN FOREIGN CURRENCY TO NON-RESIDENT SHAREHOLDERS:

2007-08 2006-07
No of Shares Gross Amount No of Shares Gross Amount
Shareholders Held of Dividends Shareholders Held of Dividends

Final Dividend
on Equity — — — 3,781 11,142,104 Rs. 1.95 crores
Interim Dividend
on Equity — — — 3,677 12,780,845 Rs. 5.11 crores

Signatures to Schedules ‘1’ to ‘22’

KUMAR MANGALAM BIRLA
Chairman
S. MISRA
Managing Director R. C. BHARGAVA
G. M. DAVE
Y. M. DEOSTHALEE
K. C. BIRLA N. J. JHAVERI
Sr. Executive President & CFO DR. S. MISRA
V. T. MOORTHY
S. RAJGOPAL
S. K. CHATTERJEE D. D. RATHI
Mumbai, April 22, 2008 Company Secretary Directors

92
CMYK

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

Balance Sheet Abstract and General Business Profile
I Registration Details
Registration No. 1 1 - 1 2 8 4 2 0 State Code 1 1
Balance Sheet Date 3 1 - 0 3 - 0 8

II 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

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

Total Liabilities Total Assets
6 2 5 8 3 9 9 6 6 2 5 8 3 9 9 6
Source of Funds: Paid-up Capital Reserve & Surplus
1 2 4 4 8 5 9 2 5 7 1 7 3 3 2
Secured Loans Unsecured Loans
9 8 2 6 6 1 7 7 5 7 8 3 7 5
Application of Funds: Net Fixed Assets Investments
4 7 8 3 6 1 4 4 1 7 0 8 9 6 4
Net Current Assets Miscellaneous Expenditure
2 5 3 2 5 5 N I L

IV Performance of Company (Amount in Rs. Thousands)

Turnover
6 2 8 6 2 3 9 7
+/- Profit/(Loss) Before Tax
+ 1 5 0 7 0 0 8 1
Earning Per Share (Rs.)
8 0 . 9 4
Total Expenditure
4 7 7 9 2 3 1 6
+/- Profit/(Loss) After Tax
+ 1 0 0 7 6 0 5 1
Dividend Rate (%)
5 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

KUMAR MANGALAM BIRLA

Chairman
S. MISRA
Managing Director R. C. BHARGAVA
G. M. DAVE
Y. M. DEOSTHALEE
K. C. BIRLA N. J. JHAVERI
Sr. Executive President & CFO DR. S. MISRA
V. T. MOORTHY
S. RAJGOPAL
S. K. CHATTERJEE D. D. RATHI
Mumbai, April 22, 2008 Company Secretary Directors

93
CMYK

STATEMENT PURSUANT TO SECTION 212 OF THE COMPANIES ACT, 1956 RELATING TO SUBSIDIARY COMPANIES
Name of the Subsidiary Company Dakshin UltraTech
Cements Ceylinco
Limited (Pvt.) Limited
1 Financial year of the subsidiary company ended on March 31, 2008 March 31, 2008
2 Holding Company’s Interest
a) Number of Shares fully paid 50,000 40,000,000
b) Extent of holding 100% 80%

3 Net aggregate amount of Profit/(Loss) of the Rs. Crore Rs. Crore

subsidiary, so far as they concern members of the
UltraTech Cement Limited
i) for the financial year of the subsidiary
a) Dealt with in the account of the — 2.80
holding company
b) Not dealt with in the accounts of the — 3.05*
holding company
ii) for the previous financial years of
the subsidiary since it became the holding company’s subsidiary
a) Dealt with in the account of the — 7.04
holding company
b) Not dealt with in the accounts of the — 10.85#
holding company
4 As the financial year of the subsidiary companies
coincide with the financial year of the holding company,
Section 212(5) of the Companies Act, 1956 is not applicable.
* converted Re. 1 = Sri Lankan Rupees 2.61
# converted Re. 1 = Sri Lankan Rupees 2.42

KUMAR MANGALAM BIRLA

Chairman
S. MISRA
Managing Director R. C. BHARGAVA
G. M. DAVE
Y. M. DEOSTHALEE
K. C. BIRLA N. J. JHAVERI
Sr. Executive President & CFO DR. S. MISRA
V. T. MOORTHY
S. RAJGOPAL
S. K. CHATTERJEE D. D. RATHI
Mumbai, April 22, 2008 Company Secretary Directors

94
CMYK

AUDITORS’ REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS

TO THE BOARD OF DIRECTORS OF
ULTRATECH CEMENT LIMITED ON THE CONSOLIDATED FINANCIAL STATEMENTS
OF ULTRATECH CEMENT LIMITED AND ITS SUBSIDIARIES
1. We have examined the attached Consolidated Balance Sheet of UltraTech Cement Limited
(“the Company”) and its subsidiaries which together constitute “the Group” as at March
31, 2008, 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 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 statements. An audit also includes assessing the accounting principles used
and significant estimates made by the Management, as well as evaluating the overall
financial statements. 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. 50.94 crores as at March 31, 2008, the total revenue of Rs. 218.19 crores
and cash flows amounting to Rs. 4.73 crores for the year then ended. These financial
statements and other financial information have been audited by other auditors whose
reports have been furnished to us, and our opinion, in so far as they relate to the amounts
included in respect of these subsidiaries is based solely on the report of 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), issued by the Institute of Chartered Accountants of India and on the basis of
the separate audited financial statements of the Company and the separate audited accounts
of subsidiaries, which have been included in the consolidated financial statements.
5. Based on our audit and on consideration of reports of other auditors on separate financial
statements and on the other financial information of the components, and to the best of our
information and according to the explanations given to us, we are of the opinion that the
attached consolidated financial statements give a true and fair view in conformity with the
accounting principles generally accepted in India:
(a) in the case of the consolidated balance sheet, of the state of affairs of the Group as at
March 31, 2008;
(b) in the case of the consolidated profit and loss account, of the profit for the year ended
on that date; and
(c) in the case of the consolidated cash flow statement, of the cash flows for the year
ended on that date.
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO.
Chartered Accountants Chartered Accountants
B. P. SHROFF ATUL B. DESAI
Partner Partner
(Membership No.34382) (Membership No.30850)
Mumbai, April 22, 2008

95
CMYK

CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 200 8

Rs. in Crores
As at
March 31, 2007
Schedules
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 124.49 124.49
Employees Stock Options Outstanding 1B 0.77 —
Reserves and Surplus 2 2,577.32 1643.72
2,702.58 1,768.21
Loan Funds
Secured Loans 3 982.66 1,151.25
Unsecured Loans 4 757.84 427.38
1,740.50 1,578.63
Minority Interest 5.74 5.30
Deferred Tax Liabilities (net) 545.38 562.09
TOTAL 4,994.20 3,914.23

APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 4,997.21 4,810.81
Less: Depreciation 2,479.48 2,274.16
Net Block 2,517.73 2,536.65
Capital Work-in-Progress 2,283.41 697.19
4,801.14 3,233.84
Goodwill 7.75 9.10
Investments 6 146.66 459.21
Current Assets, Loans and Advances
Inventories 7 619.65 441.19
Sundry Debtors 8 202.63 173.89
Cash and Bank Balances 9 114.30 100.11
Loans and Advances 10 382.97 254.26
1,319.55 969.45
Less:
Current Liabilities and Provisions
Current Liabilities 11 1,154.55 738.80
Provisions 12 126.35 18.57
1,280.90 757.37
Net Current Assets 38.65 212.08
TOTAL 4,994.20 3,914.23
Accounting Policies and Notes on Accounts 21

In terms of our report attached. KUMAR MANGALAM BIRLA

Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

96
CMYK

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 200 8
Rs. in Crores
Previous
Schedules Year
INCOME
Gross Sales 6,400.84 5,541.91
Less: Excise Duty 777.02 573.52
Net Sales 5,623.82 4,968.39
Interest & Dividend Income 13 36.32 27.01
Other Income 14 63.47 32.21
Increase / (Decrease) in Stocks 15 26.50 (30.38)
5,750.11 4,997.23
EXPENDITURE
Raw Materials Consumed 16 622.72 427.24
Manufacturing Expenses 17 1,836.24 1,658.75
Purchase of Finished Products 13.68 182.43
Payments to and Provisions for Employees 18 174.50 118.99
Selling, Distribution, Administration and
Other Expenses 19 1,285.76 1,123.51
Interest 20 75.67 86.83
Depreciation and Obsolesence 238.27 227.31
Amortisation of Goodwill on Consolidation 1.35 1.35
4,248.19 3,826.41
Less: Self Consumption of Cement {Net of Excise
Duty Rs. 5.13 Crores. (Previous Year Rs. 1.14 Crores)} (13.37) (4.52)
4,234.82 3,821.89
Profit Before Tax Expenses 1,515.29 1,175.34
Provision for Current Tax 513.30 399.42
Deferred Tax (15.39) (15.35)
Provision for Fringe Benefit Tax 5.87 4.61
Profit After Tax 1,011.51 786.66
Minority Interest 1.46 1.75
Profit After Minority Interest 1,010.05 784.91
Balance brought forward from Previous Year 796.81 199.59
Profit Available for Appropriation 1,806.86 984.50
Appropriations
Interim Dividend - 49.79
Proposed Dividend 62.24 -
Corporate Dividend Tax 10.58 6.98
Debenture Redemption Reserve (8.17) 30.92
General Reserve 120.00 100.00
Balance carried to Balance Sheet 1622.21 796.81
1806.86 984.50
Basic Earnings Per Equity Share (in Rs.) {See Note B 13(A)} 81.14 63.05
Diluted Earnings Per Equity Share (in Rs.) {See Note B 13(B)} 81.11 63.05
Accounting Policies and Notes to Account 21
In terms of our report attached. KUMAR MANGALAM BIRLA
Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

97
CMYK

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 200 8
Rs. in Crores
March 31, 2008 March 31, 2007
A Cash Flow from Operating Activities:
Profit before tax 1,515.29 1,175.34
Adjustments for:
Depreciation and Obsolescence 238.27 227.31
Amortisation of Goodwill on Consolidation 1.35 1.35
Employees Compensation Expenses under ESOS 0.77 -
Provision for Doubtful Debts and Advances / (Written back) 0.20 -
Bad Debts Written-off 1.79 0.76
Provision for Retirement benefits 7.43 4.71
Provision for Mines Restoration 1.87 1.64
Interest & Dividend Income (36.32) (27.01)
Interest Expense 75.67 86.83
Unrealised Foreign Exchange (Gain)/Loss (8.97) (2.73)
(Profit)/Loss on Sale of Fixed Assets 1.18 -
Profit on Sale of Investment (1.28) (0.26)
Operating Profit Before Working Capital Changes 1,797.25 1,467.94
Adjustments for:
(Increase)/decrease in Inventories (178.46) (54.40)
(Increase)/decrease in Sundry Debtors (30.73) (12.60)
(Increase)/decrease in Loans and Advances (139.03) (81.65)
Increase/(decrease) in Trade Payables and other Liabilities 415.59 222.48
Cash Generated From Operations 1,864.62 1,541.77
Taxes paid (483.74) (421.01)
Net Cash from Operating Activities (A) 1,380.88 1,120.76
B Cash Flow from Investing Activities:
Purchase of Fixed Assets (1,799.13) (765.23)
Sale of Fixed Assets 7.07 2.39
(Increase)/decrease in Current Investments 312.34 (311.00)
Profit on Sale of Investments 1.28 0.26
Interest and Dividend Received 36.53 26.95
Net Cash used in Investing Activities (B) (1,441.91) (1,046.63)
C Cash Flow from Financing Activities:
Repayment of Long Term Borrowings (285.00) (76.00)
Proceeds from Long Term Borrowings 161.55 200.43
Proceeds of Short Term Borrowings (Net) 290.11 6.60
Interest paid (89.03) (89.21)
Dividend Paid (0.77) (72.37)
Corporate dividend tax - (10.04)
Net Cash Generated / (Used) in Financing Activities (C) 76.86 (40.59)
Net increase in cash and cash equivalents (A + B + C) 15.83 33.54
Cash and Cash Equivalents at the Beginning of the Year 100.11 68.39
Effect of exchange rate on consolidation of Foreign Subsidiary (1.64) (1.82)
Cash and Cash Equivalents at the End of the Year 114.30 100.11
Notes:
1. Cash flow statement has been prepared under the indirect method as set out in Accounting Standard - 3 issued by the
Institute of Chartered Accountants of India.
2. Purchase of fixed assets includes movements of capital work-in-progress between the beginning and the end of the year.
3. Cash and cash equivalents represent cash and bank balances.
4. Previous year’s figures regrouped / recasted wherever necessary.

In terms of our report attached. KUMAR MANGALAM BIRLA

Chairman
For DELOITTE HASKINS & SELLS For G. P. KAPADIA & CO. S. MISRA R. C. BHARGAVA
Chartered Accountants Chartered Accountants Managing Director G. M. DAVE
Y. M. DEOSTHALEE
N. J. JHAVERI
B. P. SHROFF ATUL B. DESAI K. C. BIRLA DR. S. MISRA
Partner Partner Sr. Executive President & CFO V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Mumbai, April 22, 2008 Company Secretary

98
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Rs. in Crores
Previous
Year
SCHEDULE 1A
SHARE CAPITAL
Authorised
130,000,000 Equity shares of Rs. 10 each 130.00 130.00

Issued, Subscribed and Paid-up 124.49 124.49

124,485,879 Equity shares of Rs. 10 each fully paid-up.
(Previous Year 124,485,879)
124.49 124.49
SCHEDULE 1B
EMPLOYEES STOCK OPTIONS OUTSTANDING
Employees Stock Options Outstanding 2.45 —
Less: Deferred Employees Compensation Expenses 1.68 —
0.77 —

Outstanding Employees Stock Option exercisable into 168,070 Equity Shares of

Rs.10 each fully paid-up.
SCHEDULE 2
RESERVES & SURPLUS Rs. in Crores
Balance Additions Deduction/ Balance
as at during Adjustments as at
31st the during 31st
March, 07 year the year March, 08
Capital Reserve 25.02 — — 25.02
Cash Subsidy Reserve 0.10 — — 0.10
Debenture Redemption Reserve 169.80 — (8.17) 161.63
General Reserve 653.49 120.00 (2.35)** 771.14
Exchange Variation Reserve * (1.50) (1.28) — (2.78)
Surplus as per Profit & Loss Account 796.81 1,010.05 (184.65) 1622.21
1,643.72 1,128.77 (195.17) 2,577.32
Previous Year 916.88 914.53 (187.69) 1643.72

* Exchange Variation Reserve has been created for Exchange Variation loss in Opening Equity Share Capital
and Reserve & Surplus of UltraTech Ceylinco (Pvt.) Ltd.
**Adjustment on account of transitional provision of AS 15 (Revised).

SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures 759.32 943.40
Loans from Banks:
Cash Credits / Working Capital Borrowings from Banks Secured by
Hypothecation of Stocks and Book Debts 143.10 20.91
Term Loans 80.24 186.94
982.66 1,151.25

99
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Rs. in Crores
Previous
SCHEDULE 4 Year
UNSECURED LOANS
Short Term Loans from Banks 170.19 —
Long Term:
From Banks 262.90 173.88
Sales Tax Deferment Loans 324.75 253.50
757.84 427.38

SCHEDULE 5
FIXED ASSETS
Rs. in Crores
Particulars Gross Block Depreciation Net Block
As at Additions Deductions/ As at As at For the Deductions/ Upto As at As at
31.03.07 Adjustments 31.03.08 31.03.07 year Adjustments 31.03.08 31.03.08 31.03.07
Freehold Land 75.01 8.20 — 83.21 — — — — 83.21 75.01
Leasehold Land 20.07 0.59 0.10 20.56 5.97 0.63 0.03 6.57 13.99 14.10
Buildings 485.67 25.60 0.92 510.35 152.93 14.22 0.48 166.67 343.68 332.74
Railway Sidings 159.66 — — 159.66 67.40 7.48 — 74.88 84.78 92.26
Plant & Machinery 3,898.81 171.48 35.88 4,034.41 1,927.32 199.21 21.77 2,104.76 1,929.65 1,971.49
Furniture & Fixtures 83.56 16.74 2.48 97.82 47.67 6.81 1.96 52.52 45.30 35.89
Jetty 76.63 — — 76.63 66.83 0.96 — 67.79 8.84 9.80
Vehicles 11.40 5.08 1.91 14.57 6.04 1.47 1.22 6.29 8.28 5.36
4,810.81 227.69 41.29 4,997.21 2,274.16 230.78 25.46 2,479.48 2,517.73 2,536.65
Previous year 4,633.75 207.08 30.02 4,810.81 2,074.46 220.63 20.93 2,274.16

Add: Capital Work-in-Progress {includes advances of Rs. 388.75 Crores (Previous Year Rs. 346.12 Crores)} 2,283.41 697.19
4,801.14 3,233.84

Note: Rs. in Crores

Depreciation for the year 230.78
Add: Obsolesence 7.58
Less: Depreciation transferred to Pre-operative Expenses (0.09)

Depreciation as per Profit and Loss Account 238.27

SCHEDULE 6
LONG TERM (TRADE)
Government and Trust Securities -Unquoted — —
(Rs. 10,000, Previous year Rs. 10,000)
Pledged as security deposit
Others -Unquoted
2,000,000 4.5% Cumulative Non-Convertible Redeemable
Preference Shares of Rs. 100 each in Aditya Birla Health
Services Limited. (Previous Year Nil) 20.00 —
CURRENT - Unquoted (Other Investments)
Investment in Debt Schemes of Various Mutual Funds 126.66 459.21
146.66 459.21
Note: No. of Units of Various Mutual Funds - Debt Schemes purchased and redeemed during the year
6,289,564,035.

100
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Rs. in Crores
Previous
SCHEDULE 7 Year
INVENTORIES
Stores & Spare parts, Packing Material, Fuels and Scrap 409.08 275.10
Raw Materials 43.26 23.43
Work-in-Progress 102.35 75.60
Finished Goods (Includes transit stock of Rs. 5.02 Crores
Previous Year Rs. 2.61 Crores) 64.96 67.06
619.65 441.19
SCHEDULE 8
SUNDRY DEBTORS
Exceeding six months:
Good and Secured 6.18 5.72
Good and Unsecured 3.29 3.55
Doubtful and Unsecured 1.55 1.14
11.02 10.41
Less: Provision for Doubtful Debts 1.37 1.25
9.65 9.16
Others:
Good and Secured 83.67 97.40
Good and Unsecured 109.31 67.33
192.98 164.73
202.63 173.89
SCHEDULE 9
CASH AND BANK BALANCES
Cash Balance on Hand {Including Cheques on Hand
Rs. 17.62 crores; (Previous Year Nil)} 18.69 0.48
Bank Balance with Scheduled Banks:
In Current Accounts 82.66 92.49
In Fixed Deposit Accounts 12.95 7.14
114.30 100.11
SCHEDULE 10
LOANS & ADVANCES
Secured & Considered Good
— Loan against mortgage of House Property 1.64 1.57
Unsecured
Considered Good:
Deposits and Balances with Government and other Authorities
(including accrued interest) 155.74 70.58
Advances recoverable in cash or in kind or for value to be received 225.59 168.78
Advance Tax (Net of Provision) — 13.33
Considered Doubtful:
Advances recoverable in cash or in kind 0.22 0.22
381.55 252.91
Less: Provision for doubtful Loans and Advances 0.22 0.22
381.33 252.69
382.97 254.26

101
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Rs. in Crores
Previous
Year
SCHEDULE 11
CURRENT LIABILITIES
Sundry Creditors 777.05 464.37
Security and Other Deposits 150.11 113.25
Advances from Customers 104.73 53.93
Investor Education and Protection Fund, Amount not due:
Unpaid Dividend 0.37 0.39
Other Liabilities 90.02 74.82
Interest accrued but not due on loans 32.27 32.04
1,154.55 738.80

SCHEDULE 12
PROVISIONS
Retirement Benefits 27.92 16.93
Provision for Mines Restoration 3.51 1.64
Provision for Tax (Net of Advance Tax) 22.10 -
Proposed Dividend 62.24 -
Corporate Dividend Tax 10.58 -
126.35 18.57

SCHEDULE 13
INTEREST & DIVIDEND INCOME
Interest (Gross) on others 7.57 3.89
(Tax Deducted at Source Rs. 0.57 Crore, Previous Year Rs. 0.47 Crore)
Dividend from Current Investments 28.75 23.12
36.32 27.01
SCHEDULE 14
OTHER INCOME
Lease Rent 0.68 1.28
Profit on Sale of Current Investments (Net) 1.28 0.26
Insurance Claim 0.26 0.36
Exchange Rate Difference (Net) 11.89 3.19
Miscellaneous Income / receipts 49.36 27.12
63.47 32.21
SCHEDULE 15
INCREASE / (DECREASE) IN STOCKS
Closing Stock
Work-in-progress 102.35 75.60
Finished Goods 60.99 64.45
163.34 140.05
Opening stock
Work-in-progress 75.60 105.97
Finished Goods 64.45 62.68
140.05 168.65
Add: Increase / (Decrease) in Excise Duty on Stocks 3.21 (1.78)
Increase / (Decrease) in Stocks 26.50 (30.38)

102
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Rs. in Crores
Previous
Year
SCHEDULE 16
RAW MATERIALS CONSUMED
Opening Stock 23.43 12.74
Purchase and Incidental Expenses 642.55 437.93
665.98 450.67
Less: Closing Stock 43.26 23.43
622.72 427.24
SCHEDULE 17
MANUFACTURING EXPENSES
Freight and Handling expense on Clinker transfer 133.68 126.97
Consumption of Stores, Spare Parts, Components and Packing Materials 358.43 303.78
Power & Fuel Consumed 1,254.17 1,139.22
Hire Charges of Plant & Machinery and others 6.26 5.78
Repairs to Plant & Machinery 61.54 60.48
Repairs to Buildings 5.26 5.92
Repairs to Others 16.90 16.60
1,836.24 1,658.75
SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 132.86 88.66
Contribution to and Provisions for Provident and Other Funds 21.19 13.70
Compensation Expenses under ESOS 0.77 —
Welfare Expenses 19.68 16.63
174.50 118.99
SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission paid to Distributors and Selling Agents 14.72 11.60
Cash Discount 57.53 37.35
Freight, Handling and Other Expenses 969.88 883.74
Advertisement and Sales Promotion 102.30 77.25
Insurance 9.34 11.21
Rent (including Lease Rent) 13.36 9.75
Rates and Taxes 29.96 16.14
Stationery, Printing and Communication Expenses 10.12 8.93
Travelling and Conveyance 22.23 19.52
Legal and Professional charges 16.36 15.62
Bad Debts and Advances Written off 1.79 0.76
Provision for Doubtful Debts and Advances 0.20 -
Directors’ Fees 0.12 0.18
Power (other than related to Manufacturing Activity) 1.79 1.53
Exchange Rate difference (Net) - 0.34
Loss on Sale of Fixed Assets (Net) 1.18 0.05
Contribution for Political Party (General Electoral Trust) 2.80 -
Miscellaneous Expenses 32.08 29.54
1,285.76 1,123.51
SCHEDULE 20
INTEREST
On Debentures and Fixed Loans 62.38 79.18
On Others Loans 13.29 7.65
75.67 86.83

103
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULES 21

ACCOUNTING POLICY AND NOTES ON ACCOUNTS

A Significant Accounting Policies:

1. Basis of Accounting:
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 in conformity with the generally accepted accounting principles
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) less
accumulated depreciation / amortisation.
4. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rate prevailing on the date of the transaction.
Foreign currency monetary assets and liabilities at the balance sheet date are restated at the year end
rate. Premium in respect of forward contracts is recognised over the life of the contracts. Exchange
differences in case of borrowed funds and liabilities in foreign currency for projects are adjusted to the
cost of fixed assets, till the commissioning of the project and thereafter recognised in the Profit and
Loss Account. Any other exchange difference is dealt with in the Profit and Loss account.
5. Financial Derivatives:
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 to be held to maturity. These are accounted on the date of settlement.
6. Treatment of Expenditure during Construction Period:
Expenditure during construction period is included under Capital Work-in-Progress and the same is
allocated to the respective Fixed Assets on the completion of its construction.
7. Investments:
Current investments are carried at lower of cost or fair value. Long term investments are stated at cost
after deducting provisions made for diminution other than temporary.
8. Inventories:
Inventories are valued at the lower of weighted average cost and net realisable value except waste /
scrap which is valued at net realisable value.
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.
9. 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.

104
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
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.
(Also refer to the policy on Depreciation and Amortisation below)
10. Depreciation and Amortisation:
Depreciation is charged in the accounts on the following basis:
i) Depreciation is provided on the straight-line basis at the rates prescribed in Schedule XIV to the
Companies Act, 1956 except for the following:
a) Motor Cars at 14.14 % per annum except for Motor Cars given to the employees.
b) Motor Cars given to the employees as per the Company’s Scheme is depreciated over the Scheme
period.
c) Personal Computers and Laptops given to the employees as per the Company’s Scheme at 31 %
per annum.
d) Roads, Culverts, Walls, Buildings etc., within factory premises are depreciated at 3.34 %
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 / deductions is calculated pro-rata from / to the month of addition / deduction.
11. Impairment of Assets:
The carrying amount 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 losses recognised for the asset no longer exists or has decreased.
12. Employee Benefits:
(i) Defined Contribution Plan
Contributions to defined contribution plan are recognised as expense in the Profit and Loss Account, as
they are incurred.

105
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
(ii) Defined Benefit Plan
The obligation in respect of defined benefit plan is determined using projected unit credit method, with
actuarial valuation at the end of each financial year. Actuarial gains / losses 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 Indian Government Securities as at the balance sheet date for
the estimated term of the obligations.
13. Borrowing Costs:
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of the cost of such asset till such time as the asset is ready for its intended use. A
qualifying asset is an asset that necessarily requires 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.
14. Provision for Current and Deferred Tax:
Provision for Current Tax is made on the basis of estimated taxable income for the current accounting
period and 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 a 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.
15. Revenue Recognition:
Sales Revenue is recognised on transfer of significant risks and rewards of ownership of the goods to the
buyer and stated net of sales tax. VAT, trade discounts and rebates but includes excise duty. Income from
services is recognised as they are rendered, based on agreement / arrangement with the concerned parties.
Dividend income on investments is accounted for when the right to receive the payment is established.
Interest income is recognised on time proportion basis. Export Incentives, insurance, railway and other
claims, where quantum of accruals cannot be ascertained with reasonable certainty, are accounted on
acceptance basis.
16. 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.
17. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement 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. Contingent
Liabilities are not recognised but are disclosed, while Contingent Assets are neither recognised nor disclosed,
in the financial statements.
18. Employees Share based payments:
The Company follows intrinsic value method for valuation of Employees Stock Options. Value at the time
of grant of ESOS is considered as compensation expense and is amortised in the Profit and Loss Account
over the period of vesting, adjusting for the actual and expected vesting.

106
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)

B. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Principles of consolidation:
(a) The Consolidated Financial Statements (CFS) comprises the financial statements of UltraTech Cement
Limited and its subsidiaries as at 31.03.2008, which are as under:

Name of the Company Country of % Shareholding &

Incorporation Voting Power
Dakshin Cements Limited India 100%
UltraTech Ceylinco (Private) Limited Sri Lanka 80%

(b) The financial statements of the parent company and its subsidiaries have been consolidated on a line-
by-line basis by adding together the book values of like items of assets, liabilities, income and expenses,
after eliminating intra-group balances and the unrealised profits / losses on intra-group transactions and
are presented to the extent possible, in the same manner as the Company’s separate financial statements.

2. Notes on Accounts of the financial statements of the Company and all the subsidiaries are set out in their
respective financial statements.
3. Goodwill:
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 in a subsidiary is amortised in equal amounts over a
period of 10 years from the date of acquisition. In the event of cessation of operations of a subsidiary, the
unamortised goodwill is written off fully.
During the year Rs. 1.35 crores (Previous year Rs. 1.35 crores) was amortised from goodwill.
4. Reserves shown in the consolidated balance sheet represents the Group’s share in the respective reserves of
the Group companies.
5. Contingent Liabilities not provided for in respect of:
Rs. in Crores
Previous
Year
Claims not acknowledged as debts in respect of matters in appeals

(a) Sales tax liability 51.30 80.51

(b) Excise duty 27.35 35.75
(c) Royalty on Limestone/ Marl 43.27 43.48
(d) Customs 0.11 0.19
(e) Others 31.82 33.53
6. Estimated amount of contracts remaining to be executed on capital account and not provided (net of
advances) Rs. 491.32 crores (Previous year Rs. 1,749.10 crores).

107
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)

7. Segment reporting:
The Group has one business segment ‘cement’ as primary segment. The secondary segment is geographical,
which is as under:
Rs. in Crores
2007-08 2006-07
Revenue
Net Sales:
In India 5,005.43 4,241.77
Outside India 618.39 726.62
Total 5,623.82 4,968.39

8. Disclosure of related parties / related party transactions:

a) Names of the related parties with whom transactions were carried out during the year and description of
relationship:
Name of the Related Party Nature of Relationship
Grasim Industries Limited (Grasim) Holding Company
Sun God Trading & Investment Ltd. Fellow Subsidiary
Samruddhi Swastik Trading & Investment Ltd.(SSITL) Fellow Subsidiary
Shree Digvijay Cement Co. Ltd. (SDCCL) (upto 24.03.2008) Fellow Subsidiary
Harish Cement Ltd (HCL) Fellow Subsidiary
Grasim Bhiwani Textiles Limited (w.e.f. 01.10.2007) Fellow Subsidiary

Key Management Personnel (KMP) and their relatives:

Mr. S. Misra, Managing Director of the Company

b) Disclosure of related party transactions:

Rs. in Crores
Sr. No. Nature of Transaction Grasim SSITL GBTL SDCCL KMP Total
1. Sale of Goods 44.51 — — 0.05 — 44.56
(265.07) — — (0.33) — (265.40)
2. Purchase of goods 25.50 — 0.03 2.59 — 28.12
(191.69) — — (2.41) — (194.10)
3. Sale of Fixed Assets 5.68 — — — — 5.68
— — — — — —
4. Purchase of Fixed Assets 0.09 — — — — 0.09
(0.21) — — — — (0.21)
5. Receiving of Services 0.11 0.17 — — 4.44 4.72
(0.08) (0.12) — — (3.36) (3.56)
6. Interest & Other Income — — — — — —
received/receivable — — — (0.04) — (0.04)

108
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
Outstanding Balance as on March 31, 2008
Rs. in Crores
Sr. No. Nature of Transaction Grasim SSITL SDCCL KMP Total

1. Debtors — — — — —
(0.27) — (Rs.6,305) — (0.27)
2. Loans & Advances 0.51 0.09 — 0.50 1.10
— (0.09) (Rs.1,276) (0.50) (0.59)
3. Other Liabilities & Creditors 1.07 — — — 1.07
(0.36) — — — (0.36)
Figures in brackets are pertaining to previous year.
9. Leases:
Operating Leases:
i) The Company has taken various plant and machinery under cancellable operating leases. These lease
agreement are generally renewed on expiry.
ii) (a) The Company has taken on non-cancellable operating leases certain assets, the future minimum
lease payments in respect of which, as at March 31, 2008 are as follows:
Rs. in Crores
2007-08 2006-07
Minimum Lease Payments Payable
i. not later than 1 year 0.08 0.28
ii. later than 1 year and not later than 5 years — 0.12
iii. later than 5 years — —
Total Minimum Lease Payments 0.08 0.40
(b) The lease agreements provide for an option to the Company to renew the lease period at the
end of the non-cancellable period. There are no exceptional / restrictive covenants in the lease
agreements.
iii) The rental expense in respect of operating leases was Rs. 0.21 crore (Previous year Rs. 0.36 crore).
10. Deferred Tax Assets and Liabilities as on March 31, 2008 are as under:
Rs. in Crores
Particulars Deferred Tax Current Year Deferred Tax
(assets)/ Charge/ (assets)/
liabilities as at (Credit) liabilities as at
01.04.2007 31.03.2008
Deferred Tax Assets:
Provision allowed under tax on payment basis (11.96) (1.64)* (13.60)
Unabsorbed Losses (4.12) 1.88 (2.24)
(16.08) 0.24 (15.84)
Deferred Tax Liabilities:
Accumulated Depreciation 570.46 (16.94) 553.52
Payments allowed under tax not expensed in books 7.71 (0.01) 7.70
578.17 (16.95) 561.22
Net Deferred Tax Liability 562.09 (16.71) 545.38
*Out of Rs. 1.64 crores, Rs. 1.21 crores adjusted in General Reserve on account of transitional provision of
AS – 15 (Revised 2005)

109
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
11. Auditors’ remuneration (excluding service tax) and expenses charged to the accounts:
Rs. in Crores
a) Statutory Auditors: 2007-08 2006-07
Audit fees 0.34 0.26
Tax audit fees 0.03 0.03
Certification fees 0.21 0.14
Expenses reimbursed 0.01 0.02
b) Branch Auditors:
Audit fees 0.04 0.04
Expenses reimbursed (Rs.10,480, previous year Rs. 4,871) 0.01 —
c) Cost Auditors:
Audit fees 0.02 0.02
Expenses reimbursed (Rs. 7,645, previous year Rs 7,495) — —
12. Employee Benefits:
a) Defined Benefit Plans as per Actuarial Valuation on March 31, 2008:
Rs. in Crores
Gratuity Pension Post
Funded Other Retirement
Medical Benefits
(i) Opening Balance of Present value of
Defined Benefit Obligation 22.35 0.10 0.80 0.57
Adjustment of:
Current Service Cost 2.24 0.02 — —
Interest Cost 1.80 0.02 0.06 0.04
Actuarial Loss / (Gain) 3.44 — 0.03 (Rs. 3,209)
Benefits Paid (2.42) (Rs.46,035) (0.07) (0.04)
Past Service Cost 0.72 — — —
Closing Balance of Present value of
Defined Benefit Obligation 28.12 0.14 0.82 0.58
(ii) Change in Fair Value of Assets
Opening Balance of Fair
Value of Plan Assets 16.46 — — —
Adjustment of:
Expected Return on Plan Assets 2.01 — — —
Cont. by the employer / participants 6.14 — 0.07 0.04
Benefits Paid (2.42) — (0.07) (0.04)
Amount lying with the Company 0.47 — — —
Closing Balance of Fair Value of Plan Assets 22.66 — — —
(iii) Net Asset / (Liability) recognised in the
Balance Sheet
Present value of Defined Benefit Obligation (28.12) (0.14) (0.82) (0.58)
Fair Value of Plan Asset 22.66 — — —
Net Asset / (Liability) in the Balance Sheet (5.46) (0.14) (0.82) (0.58)

110
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
Rs. in Crores

Gratuity Pension Post

Retirement
Funded Other
Medical Benefits
(iv) Expenses recognised in the
Profit and Loss Account
Current Service Cost 2.24 0.02 — —
Interest Cost 1.80 0.02 0.06 0.04
Expected Return on Plan Assets (2.01) — — —
Actuarial (Gain) / Loss 3.44 — 0.03 (Rs. 3,209)
Total Expenses 5.46 0.04 0.09 0.04
(v) The major categories of plan assets as a
percentage of total plan
Insurer Managed Funds 100% N.A. N.A. N.A.
(vi) Actuarial Assumptions
Discount Rate 8.00% 15% 7.70% 7.70%
Turnover Rate 1% - 3% 1% - 10% — —
Mortality Published 1983 PA (90) PA (90)
rates of LIC Mortality Annuity Annuity rates
94-96 Table rates down down by
by 4 years 4 years
Salary Escalation Rate 6% 12% — —
Retirement age Staff- 60 Yrs 55 Yrs — 60 Yrs
Workers –
58 Yrs
(vii)Basis used to determine Expected Rate of Return 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.
(b) Change in Accounting Policy:
During the year, the Company has decided to adopt Accounting Standard (AS) 15 (Revised 2005)
“Employee Benefits”, issued by the Institute of Chartered Accountants of India. Accordingly the Company
has adjusted Rs. 2.35 crores (net of deferred tax liability of Rs. 1.21 crores) against the general reserve
in accordance with transitional provision of the said standard.

(c) Defined Contribution Plans:

Amount recognised as an expense and included in Schedule 18 under the head “Contribution to and
Provisions for Provident and other Funds” of Profit and Loss account Rs. 9.89 crores.
(d) Amount recognised as an expense in respect of Compensated Leave Absences is Rs. 5.44 crores.

111
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)

13. Earning per Share (EPS):

2007-08 2006-07
(A) Basic EPS:
(i) Net Profit attributable to Equity Shareholders (Rs. Crores) 1010.05 784.91
(ii) Weighted average number of Equity Shares outstanding (Nos.) 124,485,879 124,485,879
Basic EPS (Rs.) (i)/(ii) 81.14 63.05
(B) Diluted EPS:
(i) Weighted average number of Equity Shares Outstanding 124,485,879 124,485,879
(ii) Add: Potential Equity Shares on exercise of option 45,852 —
(iii) Weighted average number of Equity Shares Outstanding
for calculation of Diluted EPS (i+ii) 124,531,731 124,485879
Diluted EPS (Rs.) {(A) (i) } / (iii) 81.11 63.05
Face value of Shares (Rs.) 10 10

14. Movement of provisions during the period as required by Accounting Standard - 29 “Provisions, Contingent
Liabilities, and Contingent Asset” issued by the Institute of Chartered Accountants of India:
Mines Restoration Expenditure:
Rs. in Crores

2007-08 2006-07

Opening Balance 1.64 —

Expenditure in current year — —

Provision during the year 1.87 1.64

Closing Balance 3.51 1.64

15. (i) Derivative Instruments outstanding

Derivatives for hedging currency and interest rates, outstanding as on March 31, 2008 are as under:
Particulars Purpose Currency In Million Cross Currency
CurrentYear PreviousYear

A. Forward Contracts Exports USD 28.97 – Rupees

Buyers Credit USD 18.39 – Rupees
Capital Imports USD – 7.00 Rupees
Capital Imports Euro 9.41 5.70 USD
Buyers Credit JPY 1,845.28 – USD

B. Options (Derivatives) ECB Loan USD 40.00 40.00 Rupees

Buyers Credit JPY 2,506.25 – Rupees
Capital Imports Euro – 2.00 USD

112
CMYK

SCHEDULES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

SCHEDULE 21 (Contd.)
(ii) Un-hedged Foreign Currency exposure

Type of Exposure Currency In Million Cross Currency

CurrentYear PreviousYear

ECB Loan USD 20.00 20.00 Rupees

Buyers Credit USD 24.44 — Rupees

16. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in
line with the Company’s financial statements.

17. Previous year’s figures have been regrouped and rearranged wherever necessary to confirm to this year’s
classification.

Signatures to Schedules ‘1’ to ‘21’

S. MISRA KUMAR MANGALAM BIRLA
Managing Director Chairman

R. C. BHARGAVA
G. M. DAVE
Y. M. DEOSTHALEE
K. C. BIRLA N. J. JHAVERI
Sr. Executive President & CFO DR. S. MISRA
V. T. MOORTHY
S. RAJGOPAL
D. D. RATHI
S. K. CHATTERJEE Directors
Company Secretary
Mumbai, April 22, 2008

113
CMYK

DAKSHIN CEMENTS LIMITED

Subsidiary Companies Reports and Accounts

114
CMYK
DAKSHIN CEMENTS LIMITED
DIRECTOR’S REPORT
Dear Shareholders,
Your Directors have pleasure in presenting the Fifteenth
Annual Report of your Company together with the
Audited Accounts of your Company for the year ended
31st March, 2008.
FINANCIAL RESULTS
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 EXPENDITURE
During the year under review, your Company did not
incur any capital expenditure.
FIXED DEPOSITS
Your Company has not accepted any fixed deposit
during the year ended 31st March, 2008.
DIRECTORS’ RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies
Act, 1956, your Directors confirm that:
i) in the preparation of Annual Accounts, the
applicable accounting standards had been followed
along with proper explanation relating to material
departures;
ii) the Directors had selected such accounting policies
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 your Company
as at 31st March, 2008;
iii) the Directors had taken proper and sufficient care
for the maintenance of adequate accounting records
in accordance with the provisions of the Companies
Act, 1956 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.
AUDITORS’ REPORT
There are no adverse comments, observation or
reservation in the Auditors’ Report on the Annual
Accounts of your Company.
115
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.
PARTICULARS OF EMPLOYEES
Section 217(2A) of the Companies Act, 1956 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, TECHNOLOGY
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 &
outgo have not been provided.
AUDITORS
M/s. G. P. Kapadia & Co., Chartered Accountants,
Mumbai the existing Auditor 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 Auditor
of your Company for the financial year 2008-09.
A resolution seeking your approval for the
re-appointment of the said auditor has been included
in the Notice convening the Annual General Meeting.
ACKNOWLEDGEMENT
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
}
K. C. BIRLA
O. P. PURANMALKA Directors
M. R. PRASANNA
Place: Mumbai
Date: 14th April, 2008
CMYK
DAKSHIN CEMENTS LIMITED
AUDITORS’ REPORT
We have audited the attached Balance Sheet of Dakshin
Cements Limited as at 31st March, 2008. 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
116
Company so far as appears from our
examination of those books;
(c) The Balance Sheet dealt with by this report is
in agreement with the books of account;
(d) In our opinion, the Balance Sheet dealt with
by this report, complies with the accounting
standards referred to in Section 211(3C) of
the Companies Act, 1956, to the extent
applicable;
(e) On the basis of written representations received
from the directors as on 31st March, 2008,
and taken on record by the Board of Directors,
we report that none of the directors is
disqualified as on 31st March, 2008 from being
appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956, and
(f) In our opinion and to the best of our
information and according to the explanations
given to us, the said Balance Sheet read
together with the significant accounting
policies and other notes appearing in
Schedule 5, gives the information required by
the Companies Act, 1956, in the manner so
required and give a true and fair view in
conformity with the accounting principles
generally accepted in India , of the state of
Company’s affairs as at 31st March, 2008.
For G. P. Kapadia & Co.
Chartered Accountants
ATUL B. DESAI
Partner
(Membership No 30850)
Mumbai, April 14, 2008
CMYK

DAKSHIN CEMENTS LIMITED

Balance Sheet as at March 31, 2008
As at As at
31st March, 2008 31st March, 2007
Schedules Rupees Rupees Rupees Rupees

I. SOURCES OF FUNDS:

Shareholders’ Funds

Share Capital 1 500,000 500,000

Loan Funds – –
500,000 500,000

II. APPLICATION OF FUNDS:

Fixed Assets 2
Gross block – –
Less : Depreciation – –
Net block – –
Captial Work in progress – –
Incidental Expenditure pending
allocation / capitalisation 1,758,047 1,758,047 1,554,969 1,554,969

Current Assets, Loans and Advances 3 391,327 365,576

391,327 365,576

Less : Current Liabilities and Provisions 4 1,686,768 (1,295,441) 1,457,939 (1,092,363)

Miscellaneous Expenditure
(to the extent not written off or adjusted) 37,394 37,394
500,000 500,000

Notes on Accounts 5

As per our report attached.

For G. P. Kapadia & Co.

Chartered Accountants

ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA M. R. PRASANNA

Partner Director Director Director
Membership No. 30850

Mumbai, April 14, 2008

117
CMYK

DAKSHIN CEMENTS LIMITED

Schedules forming part of the Balance Sheet Schedule - 5
As at As at NOTES ON ACCOUNTS
31st March, 31st March, 1. Significant Accounting Policies :
2008 2007 The Company maintains its accounts on accrual basis following the historical
Schedule - 1 Rupees Rupees cost convention in accordance with generally accepted accounting principles
SHARE CAPITAL (“GAAP”) and in compliance with the accounting standards referred to in
Authorised Section 211 (3C) and other requirements of the Companies Act, 1956, to
500,000 Equity shares of Rs. 10 each 5,000,000 5,000,000 the extent applicable.
2. As the Company has not yet started commercial operation no Profit & Loss
Issued and Subscribed
Account has been prepared. The statement showing the unallocated,
50,000 Equity shares of Rs. 10 each
pre-operative expenditure incurred up to 31st March 2008 is shown in
fully paid (All the shares are held by
Schedule - 2.
UltraTech Cement Limited,
the holding company) 500,000 500,000 3. The pre-operative expenditure as under pending allocation will be allocated
to appropriate fixed assets on commencement of the commercial production:
Incidental expenditure pending allocation / capitalisation
Schedule - 2 As at As at
FIXED ASSETS 31st March, 31st March,
Gross block — — 2008 2007
Less : Depreciation — — Rupees Rupees
Net block — — Travelling and conveyance 134,629 134,629
Captial work in progress — — Subscription 1,000 1,000
Incidental Expenditure pending allocation Survey expenses 90,750 90,750
/ capitalisation 1,758,047 1,554,969 Testing charges 8,000 8,000
1,758,047 1,554,969 Consultancy charges 2,500 2,500
Auditors’s remuneration 68,900 63,282
Printing & Stationery 3,764 3,764
Schedule - 3 Office expenses 2,745 2,745
CURRENT ASSETS, LOANS AND ADVANCES Bank charges 325 325
Cash and Bank Balances Directors sitting fees 7,500 7,500
Filing fees 33,770 33,770
Cash on Hand 241 241 Royalty / dead rent 1,113,271 915,811
Balance with Scheduled Bank Legal fees 262,000 262,000
on currentt account 200,305 200,305 Interest 7,008 7,008
Miscellaneous expenses 21,885 21,885
200,546 200,546
Loans and Advances Total 1,758,047 1,554,969
unsecured, considered good
TCS Receivable 3,583 — Contingent liabilities - Nil.
Advances recoverable in cash or in kind
or for value to be received 187,198 165,030 Previous year figures have been regrouped wherever necessary.

Total 391,327 365,576 Signature to Schedule 1 to 5

As per our report attached.

Schedule - 4
CURRENT LIABILITIES AND PROVISIONS For G. P. Kapadia & Co.
Liabilities Chartered Accountants
Due to UltraTech Cement Limited
(The Holding Company) 1,488,081 1,264,870
Due to Others 171,187 171,187 ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA M. R. PRASANNA
Other liabilities 27,500 21,882 Partner Director Director Director
Total 1,686,768 1,457,939 Membership No. 30850
Mumbai, April 14, 2008

118
CMYK

DAKSHIN CEMENTS LIMITED

Balance Sheet abstract and Company’s General Business Profile
1. Registration Details
Registration No. 0 1 - 0 1 6 0 0 2 State Code 0 1
Balance Sheet Date 3 1 - 0 3 - 0 8
2. Capital raised during the year (Amount in Rs. Thousands)
Public Issue Rights Issue
N I L N I L
Bonus Issue Private Placement
N I L N I L
3. Position of Mobilisation and Development of Funds (Amount in Rs. Thousands)
Total Liabilities Total Assets
5 0 0 5 0 0
Sources of Funds :
Paid up Capital Reserves & Surplus
5 0 0 N I L
Secured Loans Unsecured Loans
N I L N I L
Application of Funds :
Net Fixed Assets Investments
1 7 5 8 N I L
Net Current Assets Miscellaneous Expenditure
( 1 2 9 5 ) 3 7
Accumulated Losses
N I L
4. Performance of the Company (Amount in Rs. Thousands)
Turnover (including other income) Total Expenditure
N I L N I L
+ / - Profit / (Loss) Before Tax + / - Profit / (Loss) After Tax
N I L N I L
Please Tick Appropriate box + for Profit, - for loss
Earnings Per Share (Rs.) Dividend Rate (%)
N A N A
5. 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 M. R. PRASANNA

Director Director Director
Mumbai, April 14, 2008

119
CMYK

UltraTech Ceylinco (Pvt) Ltd

DIRECTORS’ REPORT RETIREMENT BY ROTATION AND/OR OTHERWISE
The Directors of UltraTech Ceylinco (Pvt) Ltd have pleasure By virtue of provisions contained in the Articles of
in presenting to the Members their Report for the year ended Association of the Company, the Directors are not subject
31st March, 2008. to retirement by rotation.
PRINCIPAL ACTIVITY DIRECTORS INTEREST IN THE CONTRACTS
The principal activity of the Company is carrying on business The Directors of the Company have no direct or indirect
of importers, exporters, distributors, warehousemen, interest in any contract or proposed contract of the Company,
wholesalers, retailers and dealers of cement and to establish except those specified in Note 18 to the financial statement.
storage terminals and other facilities for the bagging and
AUDITORS
distribution of bulk cement.
The accounts for the year under review have been audited
PROFIT & LOSS ACCOUNT
by Messers KPMG Ford Rhodes Thornton & Company
Year ended Year ended Chartered Accountants, who retire and being eligible offer
31.03.2008 31.03.2007 themselves for re-appointment for the year 2008-2009.
SLR (Millions) SLR (Millions) The Directors do recommend their re-appointment.
Turnover 5,648 4,778
Cost of Sales (5,277) (4,345) BY ORDER OF THE BOARD
Gross Profit 371 433
Other Operating Income 5 16
Administrative expenses (57) (50) Sgd. (Authorised Signatory)
Distributive expenses (71) (70)

Profit from Operation 248 329

Finance Income-Net 75 7 INTERNATIONAL CONSULTANCY AND
CORPORATE SERVICES (PVT) LIMITED
Profit before taxation 323 336
Taxation (118) (115)
SECRETARIES FOR ULTRATECH CEYLINCO (PVT)
Net Profit for the year 205 221 LIMITED
Earnings per share – (Rs.) 4.11 4.42

DIRECTORATE
The names of the Director of the company as at date are 28th April, 2008
given under Corporate Information. There have been no
change in the directorate during the year under review. Colombo

MESSAGE FROM THE CHIEF EXECUTIVE

The Company Distributed 0.55 Million M.Tons of cement and price controls introduced by the Sri Lankan Government.
against 0.51 Million M.Tons. This has given 8% growth as The Authorities did not allow us to increase the market
against market growth 3% which has resulted in market prices to cover the total cost increases resulting in decreasing
share of 13%. gross margins by approximately 2.5%, which was material.
The sales and other income for the financial year under Looking into the current position of the cement industry,
review were Rs. 5,648 Millions as against Rs. 4,778 Millions we have to face the following challenges in coming financial
during the same period last year, which has given us a year and hope we can overcome all.
growth of 18%. The profit after providing for tax for the a) Purchase of cement from countries other than from
period was Rs. 205 Millions as against the profit of Rs. 221 India due to the export restrictions on India.
Millions in previous year which has given us a de-growth
of 7%. b) Continuous increase on global cement purchase
prices. As a result, to convince Government to
The performance during the year compared to previous year allow us to increase prices to cover total cost
was better in terms of the quantity sold and continuous increase.
efforts in the cost reduction activities and better productivity.
However, Company could not achieve higher profits c) Carry out a brand building exercise.
compared to last year. The main reasons for this decrease in
profits are due to increase in cement /freight cost globally K.G. Redkar

120
CMYK
UltraTech Ceylinco (Pvt) Ltd
REPORT OF THE AUDITORS
TO THE MEMBERS OF ULTRATECH CEYLINCO
(PVT) LTD
Report on the Financial Statements
We have audited the accompanying financial statements of
UltraTech Ceylinco (Private) Limited, which comprise the
balance sheet as at March 31, 2008, 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 Responsibility 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.
121
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 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, 2008 and the financial statements give a
true and fair view of the Company’s state of affairs as at
March 31, 2008 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, THORTON & CO
Chartered Accountants
Colombo, 10th April, 2008.
CMYK

UltraTech Ceylinco (Pvt) Ltd

Balance Sheet as at 31st March, 2008
31.03.2008 31.03.2007

ASSETS Note SLR INR SLR INR

Non-Current Assets
Leasehold Land 7 27,542,552 10,198,497 28,724,351 11,361,670
Property, Plant & Equipment 8 440,889,326 163,253,159 462,978,101 183,127,008
Deffered Tax Asset 15 61,825,700 22,892,913 104,939,371 41,507,866
530,257,578 196,344,569 596,641,823 235,996,544

Current Assets
Inventories 9 292,404,726 108,272,059 234,903,215 92,913,947
Trade Receivables 10 66,779,214 24,727,107 235,579,071 93,181,276
Other Receivables 11 120,411,546 44,586,167 39,409,610 15,588,131
Prepayment and Advances 54,713,534 20,259,408 8,088,492 3,199,334
Cash and Cash Equivalents 12 367,049,242 135,911,542 265,402,633 104,977,729

901,358,262 333,756,283 783,383,021 309,860,417

Total assets 1,431,615,840 530,100,852 1,380,024,844 545,856,961

EQUITY & LIABILITIES

Equity
Share Capital 13 500,000,000 185,140,748 500,000,000 197,770,701
Retained Earnings 275,566,541 102,037,189 169,990,236 67,238,176

Total Equity 775,566,541 287,177,937 669,990,236 265,008,877

Non-Current Liabilities
Retiring Benefit Obligations 14 3,527,386 1,306,126 2,566,754 1,015,257
Deferred Tax Liability 15 143,725,670 53,218,956 151,111,666 59,770,920

147,253,056 54,525,082 153,678,420 60,786,177

Current Liabilities
Trade Payables 16 456,298,611 168,958,932 486,291,532 192,348,434
Other Payables 17 13,647,799 5,053,527 38,882,495 15,379,636
Income Tax Payables 17,945,286 6,644,807 26,879,771 10,632,062
Accrued Expenses 20,904,547 7,740,567 4,302,390 1,701,775

508,796,243 188,397,833 556,356,188 220,061,907

TOTAL EQUITY AND LIABILITIES 1,431,615,840 530,100,852 1,380,024,844 545,856,961

The figures in INR is converted at the rate of 2.70065 =108.35/40.12 2.5282 = 109.9/43.47

The Directors are responsible for the preparation and presentation of these Financial Statement.

The Accounting Policies and Notes annexed form an integral part of the Financial Statement.

Signed for and on behalf of the Board

K.C.Birla

A.R.Gunawardena } Directors

122
CMYK

UltraTech Ceylinco (Pvt) Ltd

Income Statement for the period ended 31st March, 2008

Year ended Year ended

31.03.2008 31.03.2007

Note SLR INR SLR INR

Turnover 1 5,648,144,817 2,163,245,935 4,777,959,022 1,977,756,205

Cost of sales (5,276,939,403) (2,024,884,572) (4,345,202,370) (1,803,518,266)

Gross profit 371,205,414 138,361,363 432,756,652 174,237,939

Other operating income 2 5,001,276 1,915,494 16,307,571 6,750,246

Administrative expenses (56,967,354) (21,761,002) (50,087,336) (20,732,814)

Distribution cost (70,856,156) (27,057,605) (70,016,265) (28,982,062)

Finance income - Net 3 75,448,508 25,428,658 7,452,548 3,911,785

Profit before income tax 4 323,831,688 116,886,908 336,413,170 135,185,094

Taxation 5 (118,255,383) (43,787,780) (115,255,124) (47,707,930)

Net profit for the year 205,576,305 73,099,128 221,158,046 87,477,164

Earnings per share - Rs 6 4.11 - 4.42 -

The figures in INR is converted at the rate of 2.6109 =((108.35+109.9)/2)/((40.12+43.47)/2) 2.415848 = ((109.9+102.9)/2)/((44.615+43.47)/2)

Statement of changes in equity

For the period ended 31st March, 2008

Share Capital Retained Total

Earnings
SLR SLR SLR

Balance as at 1st April 2006 500,000,000 48,832,190 548,832,190

Profit for the year - 221,158,046 221,158,046

Dividend paid - (100,000,000) (100,000,000)

Balance as at 31st March 2007 500,000,000 169,990,236 669,990,236

Profit for the year - 205,576,305 205,576,305

Dividend paid - (100,000,000) (100,000,000)

Balance as at 31st March 2008 500,000,000 275,566,541 775,566,541

123
CMYK

UltraTech Ceylinco (Pvt) Ltd

Cash Flow Statement for the period ended 31st March, 2008

Year ended Year ended

31.03.2008 31.03.2007

SLR INR SLR INR

Cash flows from operating activities

Profit before tax 323,831,688 116,886,908 336,413,170 135,185,094

Adjustment for

Depreciation on property, plant and equipment 26,810,183 9,927,315 25,757,070 10,187,988

Amortization of leasehold land 1,181,799 437,598 1,113,393 440,393

Provision for retiring gratuity 1,084,868 401,707 222,904 88,168

Provision for bad and doubtful debts 5,464,519 2,023,410 (2,070,323) (856,976)

Interest income (43,172,234) (16,535,015) (17,767,873) -

(Gain) / loss on translation of foreign currency - (2,411,518) - (3,052,135)

Gain / (loss) on disposal of property, plant and equipment 110,735 42,412 (771,292) (319,263)

Operating profit before working capital changes 315,311,558 110,772,817 342,897,049 141,673,269

(Increase) / decrease in inventories (57,501,511) (21,291,744) (17,426,396) (1,378,846)

(Increase) / decrease in trade and other receivables 35,708,360 13,222,144 (80,082,137) (38,237,167)

Increase / (decrease) in trade and other payables (38,625,460) (14,302,292) 46,274,860 6,360,481

(60,418,611) (22,371,892) (51,233,673) (33,255,532)

Cash generated from operations 254,892,947 88,400,925 291,663,376 108,417,737

Dividend paid (100,000,000) (38,300,115) (100,000,000) (39,554,140)

Income tax paid (91,462,193) (33,866,757) (88,576,693) (35,035,749)

Retiring gratuity paid (124,236) (46,002) (192,900) (76,300)

Net cash flow from operating activities 63,306,519 16,188,051 102,893,783 33,751,548

Cash flows from investing activities

Purchase and construction of property, plant & equipment (6,199,202) (2,295,450) (8,422,301) (2,496,629)

Interest income received 43,172,234 16,535,015 17,767,873 7,354,714

Proceeds on disposal of property, plant and equipment 1,367,059 506,197 771,292 319,263

Net cash flow from investing activities 38,340,091 14,745,762 10,116,864 5,177,348

Net increase / (decrease) in cash & cash equivalent 101,646,610 30,933,813 113,010,649 38,928,896

Cash & cash equivalents at the beginning of the year 265,402,632 104,977,729 152,391,983 66,048,833

Cash & cash equivalents at the end of the year 367,049,242 135,911,542 265,402,632 104,977,729

Analysis of cash and cash equivalents

Cash in hand 4,221,190 1,563,029 7,567,294 2,993,178

Cash at bank 362,828,052 134,348,513 257,835,339 101,984,551

367,049,242 135,911,542 265,402,633 104,977,729

124
CMYK

UltraTech Ceylinco (Pvt) Ltd

Notes to the Accounts for the period ended 31.03.2008
SLR INR
31.03.2007
SLR INR
31st March, 2008 7 LEASEHOLD LAND
Cost 38,946,767 14,421,267 38,946,767 15,405,059
31.03.2008 31.03.2007 Cumulative amortisation
SLR INR SLR INR As at the beinning of
1 TURNOVER the year 10,222,416 3,785,171 9,109,023 3,602,996
Charge for the year 1,181,799 437,598 1,113,393 440,393
Turnover-Cement 5,648,144,817 2,163,245,935 4,777,959,022 1,977,756,205 Balance at the end of the year 11,404,215 4,222,770 10,222,416 4,043,389
2 OTHER OPERATING INCOME Written down value 27,542,552 10,198,497 28,724,351 11,361,670
Income from storage Leasehold land is amortised over the lease period of 30 years.
and handling 5,100,174 1,953,372 13,035,602 5,395,869 8 PROPERTY, PLANT AND EQUIPMENT - Refer next page
Scrap Sales 11,837 4,534 430,354 178,138
Reversal of provision for 9 INVENTORIES
bad and doubtful debts - - 2,070,323 856,976 Naked cement 128,506,289 47,583,501 154,146,768 60,971,429
Gain/(loss) on disposals of Bags 11,058,021 4,094,581 2,568,850 1,016,087
property, plant and equipments (110,735) (42,412) 771,292 319,263 Stores and spares 17,218,179 6,375,573 12,174,655 4,815,580
5,001,276 1,915,494 16,307,571 6,750,246 Goods-in-transit 135,622,237 50,218,405 66,012,942 26,110,852

3 FINANCE INCOME - NET 292,404,726 108,272,059 234,903,215 92,913,947

Interest income 43,172,234 16,535,015 17,767,873 7,354,714 10 TRADE RECEIVABLES

Gain/(loss) on translation of 32,276,274 8,893,643 (10,315,325) (3,442,929) Trade receivables 103,744,023 38,414,492 267,079,361 105,640,945
foreign currency Provision for bad and
75,448,508 25,428,658 7,452,548 3,911,785 doubtful debts (36,964,809) (13,687,385) (31,500,290) (12,459,669)
66,779,214 24,727,107 235,579,071 93,181,276
4 PROFIT BEFORE INCOME TAX
Profit before income tax is stated after charging all expenses including the following 11 OTHER RECEIVABLES
Value Added Tax recoverable 118,977,422 44,055,137 38,330,145 15,161,159
Directors’ emoluments 11,224,656 4,299,056 1,988,229 822,994 Others 1,434,124 531,030 1,079,465 426,972
Auditors’ remuneration 500,000 191,501 400,000 165,573
120,411,546 44,586,167 39,409,610 15,588,131
Depreciation and amortisation 27,991,982 10,364,913 26,870,462 10,628,380
of leasehold land 12 CASH AND CASH EQUIVALENTS
Donation - - 43,000 17,799
Provision for bad and Cash in hand 4,221,190 1,563,029 7,567,294 2,993,178
doubtful debts 5,464,519 2,023,410 - - Cash at bank 362,828,052 134,348,513 257,835,339 101,984,551
Staff costs (Note 4.1) 74,548,119 28,552,015 39,285,856 16,558,770 367,049,242 135,911,542 265,402,633 104,977,729
4.1 Staff costs 13 SHARE CAPITAL
Salaries and related costs 66,565,565 25,494,688 35,132,359 14,542,452
Issued & fully paid number of shares
Defined contribution plan 50,000,000 ordinary shares 500,000,000 185,140,748 500,000,000 197,770,701
cost- EPF and ETF 6,633,318 2,540,568 3,930,593 1,627,003
Other staff cost 1,349,236 516,759 222,904 389,315 14 RETIREMENT BENEFIT OBLIGATIONS
Provision for retiring gratuity
74,548,119 28,552,015 39,285,856 16,558,770 As at the beginning of the year 2,566,754 950,422 2,536,750 1,003,390
Provision for the year 1,084,868 401,707 222,904 88,167
5 TAXATION
3,651,622 1,352,129 2,759,654 1,091,557
Taxation charge is made up as follows Payments made during the year (124,236) (46,002) (192,900) (76,300)
Income tax on current year profit 81,710,602 30,255,924 81,807,912 33,863,016
Balance at the end of the year 3,527,386 1,306,127 2,566,754 1,015,257
Deferred tax charge 35,727,675 13,229,297 32,629,133 13,506,284
Social Responsibility Levy 817,106 302,559 818,079 338,630 15 DEFERRED TAX ASSET /(LIABILITY)
118,255,383 43,787,780 115,255,124 47,707,930 As at the beginning of the year 46,172,295 17,096,746 13,543,162 5,356,881
Numerical reconciliation between tax charge and the product of accounting profit multiplied by the Provision for the year 35,727,675 13,229,297 32,629,133 12,906,173
applicable tax rate. Balance at the end of the year 81,899,970 30,326,043 46,172,295 18,263,054
Accounting profit before tax 323,831,688 116,886,907 336,413,170 135,185,094
Disallowable expenses 35,572,476 13,624,300 28,034,438 11,604,387 Deferred income tax and liabilities are offset when there is a legally enforceable right to offset assets
Allowable expenses (5,251,522) 2,011,339 (4,852,392) (2,008,566) against tax liabilities and when the deferred income taxes relate to the same fiscal authority.
Less - other income (42,954,309) (16,451,550) (17,767,873) (7,354,712)
Deferred tax assets 61,825,700 22,892,913 104,939,371 41,507,866
Taxable business income 311,198,333 116,070,997 341,827,343 137,426,203 Deferred tax liabilities (143,725,670) (53,218,956) (151,111,666) (59,770,920)
Taxable non business income 47,969,149 18,372,239 17,767,873 7,354,712 (81,899,970) (30,326,043) (46,172,295) (18,263,054)
2008 2007
Tax loss brought forward Assets Liabilities Assets Liabilities
from previous years claimed 125,708,619 48,146,545 125,858,326 52,096,949 SLR INR SLR INR SLR INR SLR INR
Recognised deferred
Taxable income 233,458,864 86,296,691 233,736,890 92,683,966 tax assets and liabilities
Tax liability @ 35% 81,710,602 30,255,924 81,807,912 33,863,016 Property, plant and equipment - - 143,725,670 53,218,956 - 151,111,666 59,770,920
Defined benefit
obligation 1,234,585 457,144 - - 898,364 355,340 - -
As per the provisions of the Inland Revenue (Amendment) Act No 10 of 2006, with effect from the year Tax loss carried forward 60,591,115 22,435,769 - - 104,041,007 41,152,526 - -
of assessment 2005/2006, the brought forward tax loss (other than capital loss) which could be claimed 61,825,700 22,892,913 143,725,670 53,218,956 104,939,371 41,507,866 151,111,666 59,770,920
in arriving at the Assessable Income is restricted to 35% of the total statutory income for the year.
Net deferred tax 81,899,970 30,326,043 46,172,295 18,263,054
The tax loss of the company brought forward from the year of assessment 2006/2007 was Rs.298,826,091-
and the company claimed Rs. 125,708,619/- during the year of assessment 2007/2008. The tax loss 16 TRADE PAYABLES
carried forward for the year of assessment 2008/2009 is Rs. 173,117,472/-.
UltraTech Cement Limited 449,874,037 166,580,031 478,299,911 189,187,417
6 EARNINGS PER SHARE Other trade payables 6,424,574 2,378,901 7,991,621 3,161,017
456,298,611 168,958,932 486,291,532 192,348,434
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. 17 OTHER PAYABLES
31.03.2008 31.03.2007 Retention money from contractors 500,000 185,141 - -
SLR INR SLR INR Rebate payable to distributors 6,123,933 2,267,579 7,107,393 2,811,268
Withholding tax payable 235,194 87,088 277,034 109,578
Net profit attributable to
Stamp duty payable 111,375 41,240 365,636 144,624
ordinary shareholders (Rs.) 205,576,305 73,099,127 221,158,046 87,477,163 Distribution expense payable 1,973,488 730,746 30,027,624 11,877,169
Number of ordinary shares in issue 50,000,000 50,000,000 50,000,000 50,000,000 Others 4,703,809 1,741,733 1,104,808 436,997
Basic earnings per ordinary share (Rs.) 4.11 1.46 4.42 1.75 13,647,799 5,053,527 38,882,495 15,379,636
There were no potentially dilutive ordinary shares issued at any time during the year

125
CMYK

UltraTech Ceylinco (Pvt) Ltd

Notes to the Financial Statement
8 PROPERTY, PLANT & EQUIPMENT
Plant & Office Lab Computer Electrical HT power Furnitures Motor Motor
Buildings machinery equipment equipment equipment installation line & fittings vehicles cycles Total
SLR SLR SLR SLR SLR SLR SLR SLR SLR SLR SLR
Cost

Cost
Balance as at 31-03-2007 37,574,084 490,596,770 3,730,401 2,039,822 5,712,322 71,748,890 1,167,013 1,523,884 4,601,668 2,390,195 621,085,048
Additions during the year - 50,050 44,189 160,433 5,602,281 183,950 - 83,573 - - 6,124,476
Disposals during the year - (1,122,175) - - - - - - - (463,400) (1,585,575)
Balance as at 31-03-2008 37,574,084 489,524,645 3,774,590 2,200,255 11,314,603 71,932,840 1,167,013 1,607,457 4,601,668 1,926,795 625,623,949

Depreciation
Balance as at 31-03-2007 9,288,775 122,410,801 2,301,346 2,009,484 3,407,844 17,939,641 338,435 1,360,403 649,882 510,710 160,217,321
Additions during the year 1,502,963 19,610,010 386,539 37,390 1,421,797 2,875,474 46,681 70,580 657,381 201,368 26,810,183
Disposals during the year - (41,168) - - - - - - - (66,613) (107,781)
Balance as at 31-03-2008 10,791,738 141,979,643 2,687,885 2,046,874 4,829,641 20,815,115 385,116 1,430,983 1,307,263 645,465 186,919,723

Written down value

As at 31-03-2008 26,782,346 347,545,002 1,086,705 153,381 6,484,962 51,117,725 781,897 176,474 3,294,405 1,281,330 438,704,227
Capital work in progress 2,185,099

440,889,326

As at 31-03-2007 28,285,310 368,185,968 1,429,055 30,338 2,304,478 53,809,249 828,578 163,481 3,951,786 1,879,485 460,867,728
Capital work in progress 2,110,373
462,978,101

8 PROPERTY, PLANT & EQUIPMENT

Buildings Plant & Office Lab Computer Electrical HT power Furniture & Motor Motor Total
machinery equipments equipments equipments installation line fittings vehicles Cycles
INR INR INR INR INR INR INR INR INR INR INR
Cost
Balance as at 31-03-2007 13,912,988 181,658,906 1,381,298 755,308 2,115,167 26,567,286 432,123 564,266 1,703,913 885,045 221,437,405
Additions during the year - 18,533 16,362 59,405 2,074,421 68,113 - 30,946 - - 2,267,780
Disposals during the year - (415,521) - - - - - - - (171,588) (587,109)
Balance as at 31-03-2008 13,912,988 181,261,917 1,397,661 814,714 4,189,588 26,635,400 432,123 595,212 1,703,913 713,457 223,118,076

Depreciation
Balance as at 31-03-2007 3,439,461 45,326,454 852,146 744,075 1,261,862 6,642,717 125,316 503,732 240,639 189,106 59,325,509
Additions during the year 556,519 7,261,224 143,128 13,845 526,465 1,064,735 17,285 26,134 243,416 74,563 9,927,315
Disposals during the year - (15,244) - - - - - - - (24,666) (39,909)
Balance as at 31-03-2008 3,995,981 52,572,434 995,274 757,920 1,788,327 7,707,452 142,601 529,867 484,055 239,004 69,212,915

Written down value

As at 31-03-2008 9,917,007 128,689,483 402,387 56,794 2,401,261 18,927,948 289,522 65,345 1,219,857 474,453 162,444,057

Capital work in progress 809,102

163,253,159

As at 31-03-2007 11,188,010 145,632,793 565,251 12,000 911,517 21,283,786 327,738 64,664 1,563,095 743,414 182,292,268

Capital work in progress 834,740

183,127,008

126
CMYK

UltraTech Ceylinco (Pvt) Ltd

18 RELATED PARTY DISCLOSURES

18.1 Identity of related parties

The Company has a related party relationship with its Parent Company UltraTech Cement Limited, Affiliate Companies and with its Directors.

18.2 The Company’s transactions with its related Companies are as follows

31.03.2008 31.03.2007

SLR INR SLR INR

- Import of cement 3,309,155,509 1,267,410,351 3,487,243,521 1,443,486,116
- Import of spares for machinery - - 1,425,157 589,920
- Amount payables as at the balance sheet date 449,874,037 166,580,031 478,299,911 189,187,417
Ceylinco Homes International Limited
- Sale of cement 1,326,049 507,878 - -
- Amount receivable as at the Balance Sheet date 256,671 95,041 - -
International Consultancy & Corporate Services (Private) Limited
- Secretarial services 334,837 128,243 207,000 85,684
Ceylinco Insurance Company PLC
- Insurance services 3,696,488 1,415,759 1,024,592 424,113
- Commission on sales - - 439,000 181,717
- Professional services - - - -
- Amount payable as at the Balance sheet date - - - -
Celinco CISCO Security Transport & Allied Services (Private) Limited
- Cash transpotation services 360,442 138,050 287,709 119,092
- Security services 4,699,887 1,800,062 1,493,573 618,240
Ceylinco Developers Limited
- Sale of cement 6,187,742 2,369,912 - -
- Amount receivable as at the Balance Sheet date 234,156 86,704 - -

Ceylinco Internet Services Limited

- E-mail & Internet servies - - 6,250 2,587

Ceylinco Villas Housing Limited

- Sale of cement 1,401,600 536,814 - -
18.3 Transactions with key management personnel
Directors’ emoluments 11,224,656 4,299,056 1,988,229 822,994
Key management personnel compensation
Housing rent 840,000 321,721 765,000 316,659
Medical expenses reimbersement 346,006 132,521 73,763 30,533
Traveling 254,577 97,503 248,530 102,875
Other non cash benefits 257,650 98,680 177,848 73,617

19 CAPITAL EXPENDITURE COMMITMENTS

Capital expenditure approved by the Directors as at 31st March 2008 but not contracted for was Rs. 8,616,869/-.

20 CONTINGENT LIABILITIES
There are no contingent liabilities as at the balance sheet date which require adjustments or disclosure in the accounts

21 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.

ACCOUNTING POLICIES
1. CORPORATE INFORMATION Accordingly, UltraTech Cement Ltd incorporated in India is
the Ultimate Parent Company.
• Domicile and Legal Form
• Number of Employees
Larsen and Toubro Ceylinco (Pvt) Ltd was incorporated on 2nd
August, 1997 as a Private limited liability Company and Number of employees as at the end of the period - 74
domiciled in Sri Lanka. Consequence to the change in the major (2007-77)
shareholder of the Company, the Company was renamed as 1.1 Statement of Compliance
UltraTech Ceylinco (Pvt) Ltd on 11th March, 2005.
• Principal Business Activities The Financial statements have been prepared in accordance
with the accounting standards issued by the Institute of
The Company imports naked cement and markets it in Chartered Accountant of Sri Lanka (ICASL), and the
Sri Lanka in 50kg bags and in bulk form. requirements of the Companies Act No. 17 of 1982.
• The Name of the Parent Enterprise and the Ultimate Parent 1.2 Basis of Preparation
Enterprise The financial statements are presented in Sri Lankan Rupees
The shareholding of the Company at the Balance Sheet date is and prepared on the historical cost basis. The Accounting
as follows. Policies are consistent with those used in the previous year.
UltraTech Cement Limited 80% 1.3 Foreign Currency Transactions
Ceylinco Insurance Company Limited 18% Transactions in foreign currencies are translated to rupees at
Ceylinco International Trading Limited 2% the foreign exchange ruling at the date of the transaction.

127
CMYK

UltraTech Ceylinco (Pvt) Ltd

Monetary assets and liabilities denominated in foreign
currencies at the balance sheet date are translated to rupees at
the foreign exchange rate ruling at that date. Foreign exchange
differences arising on translation are recognised in the income
statement. Non-monetary assets and liabilities denominated in
foreign currencies, which are stated at historical cost, are
translated to rupees at the foreign exchange rate ruling at the
date of the transaction.
2. ASSETS AND BASES OF THEIR VALUATIONS
2.1 Property, Plant & Equipment
2.1.1 Leasehold 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
amortised on a yearly basis as per the schedule of the
agreement.
2.1.2 Owned Assets
Items of Property, Plant and Equipment are stated at
cost less accumulated depreciation. Where an item of
Property, Plant and Equipment comprises major
components having different useful lives, they are
accounted for as separate items of Property, Plant and
Equipment.
2.1.3 Subsequent Expenditure
Expenditure incurred to replace a component of an
item of Property, Plant and Equipment that is accounted
for separately, is capitalised with the carrying amount
of the component being written off. Other subsequent
expenditure is capitalised only when it increases the
future economic benefits embodied in the item of
Property, Plant and Equipment. All other expenditure
is recognised in the income statement as an expense
as incurred.
2.1.4 Depreciation
Depreciation is charged on a straight-line basis over
the estimated useful lives of the assets.
The estimated useful lives are as follows.
ASSET No. of Years
Building 25
Plant and Machinery 25
Lab Equipment 06
Electronic Installation 25
Office Equipment 06
Motor Cars 07
Motor Cycles 10
IIT Power line 25
Computers 06
Furniture & Fittings 06
As per SLAS 18 (Revised) assets purchased during
the year were depreciated from the month the asset
was available to use.
2.2 Inventories
Inventories are stated 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 costs and selling
expense.
The cost of inventory is based on the FIFO cost price principle
and includes expenditure incurred in acquiring the inventories
and bringing them to their existing location and condition.
2.3 Trade and Other Receivables
Trade and other receivable are stated at the amounts estimated
to be realised. Provisions have been made in the accounts
where necessary for bad and doubtful debts.
2.4 Cash and Cash Equivalents
Cash and cash equivalents comprise cash balance and short-
term highly liquid investments that are readily convertible to
known amounts of cash.
For the purpose of Statement of Cash Flow, cash and cash
equivalents are presented net of bank overdraft.
3. LIABILITIES AND PROVISIONS
All known liabilities have been accounted in preparing the financial
statements.
3.1 Classification of Liabilities
Liabilities classified as current liabilities on the Balance Sheet
date are those, which fall due for payment on demand within
one year from Balance Sheet date. Non-current liabilities are
those balances that fall due for payment after one year from
the Balance Sheet date.
3.2 Employee Benefits
3.2.1. Defined Contribution Plan
Contributions to defined contribution pension are
recognized as an expense in the income statement as
incurred.
3.2.2. Defined Benefit Plan
Provision for Gratuity on the Employees of the
company is based on an actuarial valuation, using the
Projected Unit Credit (PUC) method as recommended
by Sri Lanka Accounting Standard No.l6 “Retirement
Benefits Costs”. The actuarial valuation was carried
out by a professionally qualified firm of actuaries,
Messer’s Piyal S Goonetilleke and Associates as at
31st March 2008. The Company expects to carry out
actuarial valuation every year.
The key assumptions used by the actuary include the
following:
Rate of interest - 15% (Per annum)
Rate of Salary Increase - 12% (Per annum)
Retirement Age - Normal Retirement age
or age on valuation
date, if greater.
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.
4. REVENUE RECOGNITION
Revenue is generally accounted for on accrual basis and is recognized
as follows:
4.1 On sale of goods all significant risks and rewards of ownership
have been transferred to the buyer, which normally occurs on
delivery of the goods.
4.2 Interest income on short-term investment is accounted on cash
basis.
5. BORROWING COST
Borrowing costs are recognized as an expense in the year in which
they are incurred, except to the extent where borrowing costs that
are directly attributable to the acquisition, construction or production
of a qualifying asset that take a substantial period of time to get
ready for intended use or sale is capitalized as part of that asset.
6. TAXATION
6.1 The liability to taxation has been computed according to the
provisions of the Inland Revenue Act No.10 of 2006 and
amendments thereto.
6.2 Deferred tax is provided using the liability method, providing
for temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the
amounts used for taxation purpose.
7. CASH FLOW
The Cash Flow Statement has been prepared using the indirect
method.

128
Mr. G. D. Birla and Mr. Aditya Birla, our founding fathers.
We live by their values.
Integrity, Commitment, Passion, Seamlessness and Speed
Infomedia India Limited