UltraTech Annual Report07

www.adityabirla.
com
www.ultratechcement.com
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

UltraTech Cement Limited
BOARD OF DIRECTORS Executives
Mr. Kumar Mangalam Birla Mr. O. P. Puranmalka Group Executive President &
Chairman Chief Marketing Officer
Mrs. Rajashree Birla Mr. S. K. Maheshwari Group Executive President &

Chief Manufacturing Officer
Mr. R. C. Bhargava
Mr. V. Shukla Chief People Officer
Mr. G. M. Dave
Mr. Y. M. Deosthalee
Mr. N. J. Jhaveri
Unit Heads
Dr. S. Misra
Mr. K. Y. P. Kulkarni Kovaya & Jafrabad (Gujarat)
Mr. V. T. Moorthy Mr. S. Kumar Hirmi (Chhattisgarh)
Mr. C. S. Reddy Tadipatri (Andhra Pradesh)
Mr. J. P. Nayak
Mr. Birendra Singh Awarpur (Maharashtra)
Mr. S. Rajgopal
Mr. D. D. Rathi
Corporate Finance Division
Mr. S. Misra Mr. J. Bajaj Joint President (Finance)
Managing Director
Mr. M. B. Agarwal Vice President (F&C)
Chief Financial Officer Auditors

Mr. K. C. Birla M/s. S. B. Billimoria & Co., Chartered Accountants, Mumbai
M/s. G. P. Kapadia & Co., Chartered Accountants, Mumbai
Company Secretary Solicitors

Mr. S. K. Chatterjee M/s. Amarchand & Mangaldas & Suresh A. Shroff & Co.,
Advocates & Solicitors, Mumbai
UltraTech Cement – Composite Units
CONTENTS
The Chairman’s Letter to Shareholders ............ 3 Auditors’ Report ................................................ 59
Notice ................................................................ 8 Balance Sheet .................................................... 64
Management Discussion and Analysis .............. 16 Profit and Loss Account .................................... 65
Report on Corporate Governance ..................... 24 Cash Flow Statement ......................................... 66
Shareholder Information ................................... 36 Schedules ........................................................... 67
Social Report ..................................................... 45 Statement Relating to Subsidiary Companies ... 85
Environment Report .......................................... 47 Consolidated Financial Statements ................... 86
Directors’ Report to the Shareholders .............. 49 Subsidiary Companies Reports and Accounts .. 103
REGISTERED OFFICE: ‘B’ Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road, Andheri (East), Mumbai 400 093
THE CHAIRMAN’S
LETTER TO
SHAREHOLDERS
Dear Fellow Shareholders,
India stands in the midst of an epochal

transformation. Today, we are the fourth
largest economy in the world in terms of
purchasing power parity, the third largest in
Asia, and the second largest among the
emerging nations. Growing at a clip of over
9% annually, India is one of the few markets
that have enormous potential for growth and
earnings in practically all sectors. There is
no let up from the Government on the reform
process which has spurred the economy.
These developments at the macro level will
have a positive impact on your Company.
Your Company has posted improved

performance, with net revenues at Rs.4,911
crores, up by 49%, and a net profit of Rs.782
crores reflecting a growth of 240%.
Your Company is augmenting capacities by

an additional 4 million tpa at its Unit in
Andhra Pradesh to cater to the growing
demand in the South India market. With an
eye on the growing Ready Mix Concrete
3
business, your Company has commenced setting up Ready Mix Concrete plants in various
places in the country.
The Captive Power Plants being set up at your Company’s Units in Andhra Pradesh, Chattisgarh
and Gujarat, are on track. They are expected to go on stream between FY08 and FY09.
The Power Plants will enable us meet the challenge of growing energy costs, besides reducing
your Company’s dependence on the State Grid.
Towards all these projects, a Capex of around Rs. 2,600 crores has been earmarked.
Your Company’s focus continues to be on sustaining Plant performance, improving service

standards and timely commissioning of projects, all of which go a long way in maintaining
the edge.
“For our success, The Cement sector is on a roll as the housing
much credit must go and infrastructure sectors, coupled with the
to our people. increasing industrial investment continue to
The quality of our people, g r o w. T h e o u t l o o k f o r y o u r C o m p a n y i s

encouraging.
their intellectual and
emotional commitment For our success, much credit must go to our people.
has been and continues The quality of our people, their intellectual and
to be unwavering. emotional commitment has been and continues to
I deeply acknowledge their be unwavering. I deeply acknowledge their
contribution in perpetuating such contribution in perpetuating such a meritocratic
a meritocratic organisation” organisation.
4
The Aditya Birla Group : In Perspective
“In line with our vision
In line with our vision to be a premium global to be a premium global
conglomerate with a clear focus at each business conglomerate with a clear
level, I am pleased to inform you that our focus at each business level,
geographic reach has far expanded. This year has I am pleased to inform you
indeed been a landmark year consequent to major
that our geographic reach
acquisitions. Today our Group is a US$ 24 billion
has far expanded......
corporation with a market cap in excess of US$ 23
.....We are all glued together
billion, anchored by a committed 100,000
by a common set of values –
workforce belonging to 25 nationalities, representing
20 countries across 5 continents. We are all glued
Integrity, Commitment,
together by a common set of values – Integrity, Passion, Seamlessness
Commitment, Passion, Seamlessness and Speed. and Speed.”
As a Group we are a meritocracy with a sharp focus on people processes. We try and make
space for new ideas and encourage a spirit of experimentation. Champions of good ideas have
every chance to try them out.
Our people systems and our Group’s HR strategy continue to evolve as our Group increasingly
globalises. In this regard, we are continuously innovating to support our business vision with
world-class HR processes and strategies. The Group-wide implementation of Project Poornata
– the PeopleSoft based HR-ERP Programme, in its first year of implementation is already
reckoned as an enabler of strategic people decisions. These on-line people processes enhance
transparency and productivity.
5
Talent management and strengthening of the talent pool in building leadership across the
Group continues to be a focus area. On the professional front, our people systems are aligned
to foster excellence, empower and enrich people, recognise creativity, innovation and reward
performance. People with a track record, people with a passion to perform are steered on to a
growth trajectory. Our endeavours to identify, develop and push high potential talent, which
was an initiative begun two years ago, will soon be institutionalised. It might interest you to
learn that more than 4,000 of our high caliber management talent have been put through our
Development Assessment Centres and their professional development plans charted out.
Our investments into employee development both through classroom teaching, e-learning,
personal coaching by senior management and mentoring have been scaled up.
Given the intense war for talent, in addition to these HR systems, we have taken a slew of
initiatives to strengthen our employer brand and to improve the quality of life of our employees.
This, we hope, will help us keep the edge.
We have set up a taskforce to define the unique employment proposition that our Group can
and does offer. Our intent is to ensure that these employee value propositions translate in the
day-to-day experiences of our people and enhance their involvement with our Group.
To offer our people a share in the value created by the organisation, we announced the
Employee Stock Option Plan which we expect to roll out in FY08. This would give them an
increasing sense of ownership in our Group.
It is with a great sense of pride that I share with you the fact that our Group has been adjudged
as the Best Employer in India in 2007 and amongst the Top 20 Best Employers in Asia in the
6
Hewitt-Economic Times and Wall Street Study of “It is with a great sense
2007. This is a singular achievement and a great of pride that I share with
honour given that the Study encompassed 230 you the fact that our
companies in India and over 700 companies in Asia. Group has been adjudged as
This honour is also a reflection of the pride, the
the Best Employer in India
affection and attachment that colleagues all over have
in 2007 and amongst the
for our Group.
Top 20 Best Employers
While we cherish this acknowledgement, we realise in Asia in the
that we have to work harder in the people area and Hewitt-Economic Times
bring in an even sharper focus on employees and and Wall Street Study
their engagement. of 2007.”
Best regards,
Yours sincerely,
21st April, 2007 Kumar Mangalam Birla
7
NOTICE
NOTICE is hereby given that the Seventh 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, 20th July, 2007 at
3.30 pm 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, 2007 and the
Profit & Loss Account for the year ended 31st March, 2007 and the Reports of the Directors’
and Auditors’ thereon.
2. To note, confirm and ratify payment of dividend on equity shares for the year ended
31st March, 2007.
3. To appoint a Director in place of Mr. J. P. Nayak, who retires by rotation and, being
eligible, offers himself for re-appointment.
4. To appoint a Director in place of Mr. Y. M. Deosthalee, who retires by rotation and, being
eligible, offers himself for re-appointment.
5. To appoint a Director in place of Mr. Kumar Mangalam Birla, 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. G. P. Kapadia & Co., Chartered
Accountants, Mumbai be and are hereby re-appointed as Joint Statutory Auditor of the
Company, and M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai be and are
hereby appointed, as the other Joint Statutory Auditor of the Company in place of
M/s. S. B. Billimoria & Co., Chartered Accountants, Mumbai who have intimated to the
Company their inability to be re-appointed as Joint Statutory Auditors of the Company,
both to hold office from the conclusion of the Seventh 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:
provisions, if any, of the Companies Act, 1956 (the “Act”), M/s. Haribhakti & Co., Chartered
Accountants, Mumbai, be and are hereby re-appointed as the Branch Auditors of the
Company, to audit the Accounts in respect of the Company’s Units at Jafrabad and Magdala
in Gujarat and Ratnagiri in Maharashtra, to hold office from the conclusion of the Seventh
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
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 of the Company, which may be opened / acquired
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.”
provisions, if any, of the Companies Act, 1956 (the “Act”), Mr. S. Misra, 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. Misra as a candidate for the office of Director of the Company,
be and is hereby appointed as a Director of the Company.”
provisions, if any, of the Companies Act, 1956 (the “Act”), Mr. N. J. Jhaveri, 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. Jhaveri 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.”
10. To consider and, if thought fit, to pass, the following Resolution as a Special Resolution:
“RESOLVED THAT pursuant to the provisions of Section 163 and all other applicable
provisions, if any, of the Companies Act, 1956 the Register of Members, Index of Members,
Register of Debentureholders, Index of Debentureholders and other related books be kept
at the premises of the Company’s Registrar and Transfer Agents viz. Sharepro Services
(India) Private Limited, Satam Estate, 3rd Floor, Above Bank of Baroda, Cardinal Gracious
Road, Chakala, Andheri (East), Mumbai 400 099.”
By Order of the Board

S.K.Chatterjee
Company Secretary
Place: Mumbai
Date: 21st April, 2007
9
NOTES :
1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS
ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF
HIMSELF/HERSELF AND THE PROXY NEED NOT BE A MEMBER OF THE
COMPANY. THE INSTRUMENT APPOINTING A PROXY SHOULD HOWEVER
BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS
THAN FORTY EIGHT HOURS BEFORE THE COMMENCEMENT OF THE
MEETING.
2. An Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 in
respect of item nos. 6 to 10 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 13th July, 2007 to 20th July, 2007 (both days inclusive) for the purpose of Annual
General Meeting.
4. The Board of Directors at their meeting held on 12th March, 2007 have declared interim
dividend of Rs. 4/- per equity share for the year 2006-2007.
At the Board meeting held on 21st April, 2007, the Board has decided to treat the interim
dividend as final dividend for the year ended 31st March, 2007. Accordingly, Members
should note, confirm and ratify the payment of interim dividend made on the equity shares
of the Company as final dividend. (Refer item no. 2 of this Notice).
5. a) Members are requested to notify immediately any change of address:
(i) to their Depository Participants (DPs) in respect of their electronic share accounts, and
(ii) to the Company or to its Registrar & Transfer Agent viz. Sharepro Services (India)
Private Limited (RTA), having their address at Satam Estate, 3rd Floor, Above Bank
of Baroda, Cardinal Gracious Road, Chakala, Andheri (East), Mumbai 400 099 in
respect of their physical share folios, if any.
b) in case the mailing address mentioned on this Annual Report is without the PIN
CODE, Members are requested to kindly inform their PIN CODE immediately.
6. Non-resident Indian shareholders 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 and debentures
held by them by addressing letters directly to the RTA or the Company at its Registered
Office quoting reference of their folio numbers or their Client ID number with DP ID
number, as the case may be.
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8. Members who are holding shares in identical order of names in more than one folio are
requested to send to the Company 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. Depository System
The Company has entered into agreements with National Securities Depository Limited
(NSDL) and Central Depository Services (India) Limited (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.
10. 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 RTA or the Company at its
Registered Office or downloaded from the Company’s website www.ultratechcement.com.
Members holding shares in the dematerialised form are required to approach their DP for
nomination.
11. a) To avoid the incidence of fraudulent encashment of the 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 No.
2) Particulars of Bank Account, viz.
i) Name of the Bank
ii) Name of Branch
iii) Complete address of the Bank with Pin Code number
iv) Account Type, whether Savings (SB) or Current Account (CA)
v) Bank Account Number allotted by the Bank
b) Members are advised to avail of the facility for receipt of future dividends through
Electronic Clearing Service (ECS). The ECS facility is available at specified locations.
Members holding shares in the dematerialised mode are requested to contact their
respective DPs for availing ECS facility. Members holding shares in physical form are
11
requested to download the ECS form from the website of the Company and the same
duly filled up and signed along with a xerox copy of a cancelled cheque may be sent to
the Company at its Registered Office or its RTA.
12. Members who hold shares in the dematerialised form and desire a change / correction in
the bank account details, should intimate the same to their concerned DP and not to the
Company or its RTA. 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 the DPs to the Company.
13. Pursuant to the recommendation of SEBI Committee on Corporate Governance for
appointment of the Directors / re-appointment of the retiring Directors, a statement
containing details of the concerned Directors is attached hereto.
Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956:

Item No. 6
M/s. S. B. Billimoria & Co., Chartered Accountants, Mumbai have vide letter dated 11th April,
2007 expressed their inability to be re-appointed as Joint Statutory Auditor of your Company.
It is therefore proposed to appoint M/s. Deloitte Haskins & Sells, Chartered Accountants,
Mumbai as the Joint Statutory Auditor in their place as stated in the resolution.
Although Section 224(2)(b) of the Companies Act, 1956 (the “Act”) dealing with such a case
does not refer to any such Notice being given in respect of the appointment of new Auditors,
the matter might also be governed by the provisions of Section 225 of the Act, in terms of
which, Special Notice is required for a resolution at an Annual General Meeting appointing as
Auditor a person other than the retiring Auditor. Accordingly, such a Special Notice has been
received by your Company from one of its Members signifying his intention to move a
resolution appointing M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai as the
new Joint Statutory Auditor of your Company.
M/s. Deloitte Haskins & Sells, Chartered Accountants, Mumbai have given a certificate of
their eligibility and willingness to act as Joint Statutory Auditor, if appointed at the ensuing
Annual General Meeting.
M/s. G. P. Kapadia & Co., Chartered Accountants, Mumbai have also separately given a
certificate of their eligibility and willingness to act as Joint Statutory Auditor, if re-appointed
at the ensuing Annual General Meeting.
It is, therefore, proposed to appoint M/s. Deloitte Haskins & Sells, Chartered Accountants,
Mumbai and re-appoint M/s. G. P. Kapadia & Co., Chartered Accountants, Mumbai as Joint
Statutory Auditors of your Company.
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The Board of Directors of your Company on the recommendation of the Audit Committee
propose the above appointment / re-appointment from the conclusion of this Annual General
Meeting until the conclusion of the next Annual General Meeting.
The resolution as set out in Item No. 6 of this Notice is accordingly commended for your
acceptance.
None of the Directors of your Company is, in any way, concerned or interested in the said
resolution.
Item no. 7
M/s. Haribhakti & Co., Chartered Accountants, Mumbai were appointed as Branch Auditors
of your Company’s Units at Jafrabad and Magdala in Gujarat and Ratnagiri in Maharashtra at
its Sixth Annual General Meeting.
The Board of Directors of your 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 your Company, to audit the Accounts of your Company’s Units at Jafrabad
and Magdala 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, your 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.
acceptance.
resolution.
Item no. 8
Mr. S. Misra was appointed as an Additional Director on the Board of your Company with
effect from 16th October, 2006. Mr. Misra has held top executive positions in the corporate
sector including as Deputy Chairman of ITC Limited and has vast experience in Corporate
Management. He has been heading the Cement Business of the Aditya Birla Group for the last
eight years and this Business has grown significantly under his stewardship.
Mr. Misra was also appointed Managing Director of your Company for a period of 3 years
effective from 16th October, 2006. The appointment of Mr. Misra as Managing Director has
been approved by the Members by passing resolution through postal ballot, results of which
were announced on 17th January, 2007.
acceptance.
None of the Directors except Mr. S. Misra is interested in the resolution.
13
Item no. 9
Mr. N. J. Jhaveri was appointed Additional Director on the Board of your Company with
effect from 16th October, 2006. Mr. Jhaveri is M.Sc. (Economics) from the London School of
Economics. Mr. Jhaveri joined ICICI in September 1974 and rose to the position of
Jt. Managing Director and retired as Executive Chairman of ICICI Securities in August, 1995,
after a long and meritorious service. He is on the Board of several reputed companies.
Considering his vast experience, his presence on the Board will be valuable to your Company.
The resolution is accordingly commended for your acceptance.
None of the Directors except Mr. N. J. Jhaveri is interested in the resolution.
Item no. 10
Under the provisions of the Companies Act, 1956, (the “Act”) certain documents such as the
Register and Index of Members, Register and Index of Debentureholders, other related books
and papers etc., are required to be kept at the Registered Office of your Company. However,
these documents can be kept at any other place within the city, town or village in which the
Registered Office of your Company is situated, with the approval of the Members to be
accorded by a Special Resolution.
Your Company has appointed M/s. Sharepro Services (India) Private Limited, Mumbai as its
Registrar and Share Transfer Agent (RTA), who have been providing depository related services
for the shares held in demat mode and also acting as the Share Transfer Agent for the shares
held in physical segment. Hence, the approval of the Members is sought in terms of
Section 163(1) of the Act, for keeping the aforementioned Registers and documents at the
premises of the RTA as stated in the resolution. The Board of Directors recommend the
resolution as set out in the Notice for your approval.
resolution.
By Order of the Board

S.K.Chatterjee
Company Secretary
Place: Mumbai
Date: 21st April, 2007
14
Details of Directors seeking re-appointment/appointment at the Annual General Meeting to be held on 20th July, 2007
Name of Director Mr. J. P. Nayak Mr. Y. M. Deosthalee Mr. Kumar Mangalam Mr. S. Misra Mr. N. J. Jhaveri
Birla
Date of Birth 13th November, 1943 6th September, 1946 14th June, 1967 16th November, 1947 9th August, 1935
Date of Appointment 30th October, 2000 24th August, 2000 14th May, 2004 16th October, 2006 16th October, 2006
Expertise in specific Company Executive Company Executive Industrialist Corporate Management Company Director
general functional area
Qualifications B.E. (Mech.); P.G.D. B. Com; ACA; LL.B ACA; MBA B.A. M. A. (Economics),
(Prodn.) Engineering M.Sc. (Economics)
London School of
Economics
List of outside 1. Audco India Ltd. 1. Larsen & Toubro Ltd. 1. Aditya Birla Nuvo Ltd. 1. Birla Telecom Ltd. 1. Afcons Infrastructure
Directorships held 2. EWAC Alloys Ltd. 2. Larsen & Toubro 2. Aditya Birla Retail Ltd. 2. BTA Cellcom Ltd. Ltd.
(Public Limited 3. Larsen & Toubro Ltd. Infotech Ltd. 3. Birla Sun Life Asset 3. Idea Cellular Ltd. 2. Gujarat State Petronet
Companies) 4. L&T Demag Plastics 3. L&T Capital Co. Ltd. Management Co. Ltd. 4. Idea Mobile Ltd.
Machinery Ltd. 4. L&T Finance Ltd. 4. Birla Sun Life Insurance Communication Ltd. 3. Hindalco Industries Ltd.
5. L&T Komatsu Ltd. 5. L&T Infrastructure Co. Ltd. 5. Shree Digvijay Cement 4. Indian Aluminium
6. NAC Infrastructure Development Project Ltd. 5. Century Textiles and Company Ltd. Company Ltd.
Equipment Ltd. 6. L&T Infrastructure Industries Ltd. 5. National Securities
7. Tractor Engineers Ltd. Finance Co. Ltd. 6. Essel Mining & Depository Ltd.
8. Voith Paper Technology 7. The Dharma Port Industries Ltd. 6. Pidilite Industries Ltd.
(India) Ltd. Company Ltd. 7. Grasim Industries Ltd. 7. Siemens Information
8. Hindalco Industries Ltd. Systems Ltd.
9. Idea Cellular Ltd. 8. Siemens Ltd.
10. PSI Data Systems Ltd. 9. SKF India Ltd.
11. Transworks Information 10. Star Paper Mills Ltd.
Services Ltd. 11. Usha Martin Ltd.
12. Voltas Ltd.
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 1. Audco India Ltd. - 1. Larsen & Toubro — 1. Shree Digvijay 1. Afcons Infrastructure
Chairman Infotech Ltd. - Chairman Cement Company Ltd. - Chairman
2. EWAC Alloys Ltd. - 2. L&T Finance Ltd. – Ltd. – Member 2. Usha Martin Ltd. -
Chairman Chairman Chairman
3. L&T Komatsu Ltd. - 3. L&T Capital Co. Ltd. – 3. Voltas Ltd. - Chairman
Chairman Member 4. Gujarat State Petronet
4. Tractor Engineers Ltd. - 4. L&T Infrastructure Ltd. - Member
Chairman Development Projects 5. Hindalco Industries Ltd.
5. L&T Demag Plastics Ltd. – Member - Member
Machinery Ltd. - 6. National Securities
Member Depository Ltd. -
Member
7. Pidilite Industries Ltd.
- Member
8. SKF India Ltd. –
Member
b) Shareholders’ 1. Larsen & Toubro Ltd. - — — 1. Shree Digvijay —

Committee Member Cement Company
Ltd. – Member
Note : Pursuant to Clause 49 of the Listing Agreement, only two Committees, viz., Audit Committee and Shareholders’ Committee have been considered.
15
MANAGEMENT DISCUSSION AND ANALYSIS
Awarpur Cement Works (ACW)

OVERVIEW:
India is the second largest producer of cement in the world, producing around 150 mtpa. Cement
is one of the core sector industries in the country. It registered a growth of around 9% in
FY07.The Government’s initiatives towards infrastructure development coupled with the growing
housing demand have to a very large extent been the catalysts. The buoyancy in the industry was
reflected in an average capacity utilisation of more than 90% in FY07, which will probably be
bettered in FY08. The industry also witnessed improved domestic and export realisation. This
was partly neutralised by increases in the cost of energy, transport and other inputs.
Cement being an energy intensive industry, availability of quality power and fuel on a regular
basis at economical prices continues to pose a challenge. The increasing need for coal by other
core sectors causes a strain on adequate availability for future needs. Further, since cement is
distributed in the local markets mainly by roads, the impact of restrictions imposed on carrying
capacity by trucks continues to adversely affect the industry.
Enthused by the performance of the industry during the last 15 months and considering the
projected demand, additional capacities of around 90 million tonnes have been announced.
These are likely to be commissioned over the next 3 years creating an imbalance in demand
and supply.
To mitigate the increase in energy costs, your Company is setting up captive power plants at
the Units in Andhra Pradesh, Chattisgarh and Gujarat. These will meet around 80% of your
Company’s power requirement. Apart from reducing your Company’s dependence on the State
grid, thereby reducing cost of power, this, to some extent will offset the effect on the margins
of your Company resulting out of increased supplies.
Further, to cater to the growing demand in the South India market, the capacity at your Company’s
Units at Andhra Pradesh is being augmented by 4 mtpa with a grinding Unit in Karnataka.
16
BUSINESS AND FINANCIAL PERFORMANCE REVIEW:
Capacity Utilisation
FY 07 FY06# % change
over FY06
Installed capacity (Mn.TPA):
Clinker 14.50 14.50
Cement 17.00 17.00
Production (Mn. Mt):
Clinker 14.22 12.73 11.70%
Cement 14.64 13.33 10.05%
– clinker capacity utilisation 98% 93%
– effective capacity utilisation@ 101% 89%
@ Effective capacity utilisation: cement production + clinker sold.
# Figures for FY06 include those of the erstwhile Narmada Cement Company Limited (NCCL) for the period
1st October, 2005 to 31st March, 2006.
Sales Volume
FY07 FY06# % change
over FY06
Sales Volume (Mn. Mt):
Domestic – Cement 13.91 12.77 9%
– Clinker 0.30 0.20 50%
Domestic Volume 14.21 12.97 10%
Exports – Cement 1.26 1.46 –14%
– Clinker 2.20 1.12 96%
Exports Volume 3.46 2.58 34%
Total Volume 17.67 15.55 14%
# Figures for FY06 include those of the erstwhile NCCL for the period 1st October, 2005 to 31st March, 2006.
Domestic sales volume grew from 12.97 Mn.Mt in FY06 to 14.21 Mn.Mt in FY07, registering
a growth of 10%. Overall exports increased from 2.58 Mn.Mt in FY06 to 3.46 Mn.Mt,
registering a growth of 34%. However, the export mix witnessed a change based on demand.
Sales Realisation (Net of Excise Duty)

FY07 FY06 % change
over FY06
Average Realisation (Rs./MT) 2,735 2,122 29%
Domestic – Cement 2,970 2,123 40%
Exports – Cement 2,435 2,133 14%
– Clinker 1,630 1,632
High capacity utilisation in India and growing demand in the Middle East have resulted in
improved domestic and export realisation.
17
Captive Jetty - Gujarat Cement Works (GCW)
Financial Highlights
(Rs. in crores)
FY07 FY06# % Change
over FY06
Net Turnover 4,911 3,299 49
Domestic 4,242 2,809 51
Exports 669 490 37
Other Income 61 37 65
Total Expenditure 3,493 2,745 27
Operating Profit (PBIDT) 1,479 591 150
Operating Margin (%) 30 18
Interest 87 90 -3
Gross Profit (PBDT) 1,392 502 178
Depreciation 226 216 5
Profit Before Tax 1,166 286 308
Current Tax 396 57 595
Deferred Tax (17) (5) 252
Fringe Benefit Tax 5 4 29
Net Profit after Total Tax 782 230 241
18
Net Turnover
The increase in turnover is linked to higher volume in domestic and export markets together
with improved price environment.
Other Income
Other Income grew from Rs. 37 crores in FY06 to Rs. 61 crores in FY07 on account of
interest / dividend earned on investments of temporary surplus fund in Debt Linked Schemes.
Operating Profit (PBIDT) and Margin
Operating profit was up by 150% from Rs. 591 crores in FY06 to Rs. 1,479 crores in FY07,
attributable to the growth in volume resulting in increased capacity utilisation (101%).
The pricing environment in the domestic as well as the export market was also favourable.
At the same time, cost of raw materials, energy, employees and logistics saw an increase on
account of the following factors:
(i) Raw Material – the overall raw material cost per metric ton of cement was higher by
16% on account of increase in inward freight due to loading restrictions and increased
procurement cost of fly ash.
(ii) Energy – energy cost witnessed an increase of 25% from Rs. 910 crores to Rs. 1,138
crores due to higher production and escalating power and fuel rates. Average fuel price
(coal) rose by around 20% - Rs. 2,015 pmt to Rs. 2,425 pmt.
(iii) Employee – costs saw an upswing on account of wage settlement and revision in
compensation structure in line with the market.
(iv) Logistics – expenses stepped up consequent to a substantial rise in rail and road freight
and higher volume.
However, despite this, operating margins improved from 18% in FY06 to 30% in FY07.
Interest
Better working capital management resulted in lowering interest costs by 3% from Rs. 90 crores
in FY06 to Rs. 87 crores in FY07.
Depreciation
Depreciation & Amortisation were higher - from Rs. 216 crores in FY06 to Rs. 226 crores in
FY07 due to capitalisation of Rs. 207 crores in FY07.
Income Tax
The provision for current tax in FY07 was Rs. 396 crores as against Rs. 57 crores in FY06.
Your Company had a tax shield in FY06 on account of carry forward accumulated tax loss of
Rs.176 crores of Narmada Cement Company Limited which was amalgamated with your
Company from 1st October, 2005. The higher tax outgo is also linked to improved earnings.
Deferred tax liability reduced by Rs. 17 crores during FY07 despite increase in tax rate on
account of change in education cess. Your Company also provided Rs. 5 crores as Fringe
Benefit Tax against Rs. 4 crores in FY06.
19
Net Profit
Net profit for FY07 stood at Rs. 782 crores compared to Rs. 230 crores in FY06.
Cash Flow Statement
(Rs. in crores)
FY07
Sources of Cash
Cash from operations 1,037
Non-operating cash flow 30
Decrease in working capital 76
Total 1,143
Uses of Cash
Net increase in investments 311
Net capital expenditure 765
Decrease in debts -131
Dividend 82
Interest 88
Increase in cash and cash equivalent 28
Total 1,143
Sources of Cash
Cash from operations
Overall improved performance was reflected in the earnings of your Company. Cash from
operations was higher at Rs. 1,037 crores in FY07 vis-a-vis Rs. 518 crores in FY06.
Non Operating Cash Flow
Non Operating Cash Flow includes dividend income from short term temporary
surplus investments, Joint Venture in Sri Lanka and interest earned on deposits with statutory
authorities.
Decrease in Working Capital
Current Assets increased by Rs. 146 crores, on account of increased deposits with
electricity boards and higher excise deposits. Liabilities and provisions rose by Rs. 222 crores
due to increase in business activities. The above resulted in reduction of working capital by
Rs. 76 crores.
20
Uses of Cash
Net increase in investments
The Company has invested its temporary surplus funds in Debt linked – Dividend Schemes of
reputed Mutual Funds.
Net Capital Expenditure
The capital expenditure of Rs. 766 crores was on account of various ongoing Capex plan.
Decrease in Debts
Your Company raised Rs. 178 crores long term debts and repaid Rs. 76 crores, resulting in
increase of Rs. 102 crores in long term borrowings. Sales tax deferment loan increased by
Rs. 24 crores.
Your Company enjoys AA+ and P1+ ratings for its long term and short term debts from
CRISIL.
Dividend
Your Company has paid a final dividend of Rs. 1.75 per equity share of Rs.10 each absorbing
an amount of Rs. 25 crores (including corporate dividend tax of Rs. 3 crores) for the year
ended 31st March, 2006. An interim dividend of Rs. 4 per equity share of Rs. 10 each
absorbing an amount of Rs. 57 crores (including corporate dividend tax of Rs. 7 crores) was
paid for the year ended 31st March, 2007. The Board of Directors have recommended that the
interim dividend be treated as final dividend for the year ended 31st March, 2007.
CAPITAL EXPENDITURE PLAN:
Your Company has earmarked over Rs. 2,600 crores for its various Capex plans. Of this,
around Rs. 1,100 crores will be spent in setting up captive power plants at the Units in Andhra
Pradesh, Chattisgarh and Gujarat. The Power Plant in Andhra Pradesh will be commissioned
in the last quarter of FY08 and at Chattisgarh in the first quarter of FY09. The power plant in
Gujarat will be commissioned in a phased manner commencing from the last quarter of FY08
and ending in the second quarter of FY09. These Power Plants will meet around 80% of your
Company’s power requirement. It will also reduce dependence on the State grid, thereby
reducing cost of power.
The capacity at your Company’s Unit at Andhra Pradesh is being augmented by 4 mtpa with a
grinding Unit in Karnataka at an expenditure of around Rs. 1,100 crores. Expected to be
commissioned in March, 2008, this will help your Company cater to the growing demand in
South India.
Ready Mix Concrete is likely to see substantial growth in the years to come. Recognising the
opportunities that this Business will offer, your Company has commenced setting up of Ready
Mix Concrete Plants at various places in the country.
21
CONSOLIDATED PERFORMANCE:
(Rs. in crores)
FY07 FY06 % Change
over FY06
Net Turnover 4,969 3,384 47
Operating Profit (PBIDT) 1,491 607 146
Interest 87 90 -4
Gross Profit (PBDT) 1,404 517 172
Depreciation & Amortisation of Goodwill 229 231 -1
Profit Before Tax 1,175 286 311
Current Tax & Fringe Benefit Tax 404 63 537
Deferred Tax (15) (4) 269
Net Profit before Minority interest 787 227 247
Minority Interest 2 2 9
Net Profit after Minority Interest 785 225 249
The consolidated turnover increased by 47% to Rs. 4,969 crores from Rs. 3,384 crores in the
previous year, due to higher volume and overall improved price environment. Net Profit
before minority interest was 3.5 times of FY06 at Rs. 787 crores.
HUMAN RESOURCES:
Your Company maintains a cordial relationship with its employees through a constructive
work environment in support of productive gains.
Your Company invests heavily in people, people processes and skill development. Organisation
Health Studies (OHS) are conducted at regular intervals and findings of the OHS Reports are
analysed and concern areas suitably addressed.
Attrition, which is a common phenomenon all across, has an effect on your Company too.
Your Company strives to retain talent by facilitating career growth through job enrichment
and empowerment. Movement of people across the Businesses is one such initiative. Talent is
identified and taken through Development Assessment Centres for further honing of skills. A
Deferred Compensation Scheme has been introduced for retention of talent.
The total number of employees in your Company as on 31st March, 2007 was 3,503
(3,266 employees).
22
RISK MANAGEMENT:
Your Company’s Risk Management framework ensures compliance with the provisions of
Clause 49 of the Listing Agreement. Your Company has institutionalised the process for
identifying, minimising and mitigating risks which is periodically reviewed. Some of the risks
identified and being acted upon by your Company are: Securing critical resources; sustainable
plant operations; cost competitiveness including logistics; timely completion of CAPEX;
customer service standard and environment and safety issues.
In addition, your Company is also exposed to foreign exchange and interest rate risks. Your
Company’s policy is to hedge its long term foreign exchange risks as well as short term
expenses within the defined parameters. To effectively deal with interest rate risks, your
Company uses a judicious mix of fixed and floating rate debts within stipulated parameters.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:
Your Company has appropriate internal control systems commensurate with its size of
operations. The Internal Audit Department monitors the internal control systems and their
implementation. Audits are carried out at regular intervals and audit reports presented to the
Audit Committee for review. Further, the Internal Audit Department is also responsible for
reviewing the risk management process and ensuring compliance with the same.
CONCLUSION:
The demand for cement is expected to grow over 9% linked to GDP growth. At the same time,
new capacity announcements are likely to result in a surplus scenario during FY09, resulting
in pressure on domestic prices from FY09 onwards. The government’s continued initiatives
for infrastructure development, augurs well for the industry.
Against this background, your Company’s focus will be on sustainable plant performance,
improving service standard and timely completion 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
REPORT ON CORPORATE GOVERNANCE
GOVERNANCE PHILOSOPHY
The Aditya Birla Group is committed to the adoption of best governance practices and their
adherence in spirit. The governance philosophy rests on five basic tenets viz., Board
accountability to the Company and shareholders, strategic guidance and effective monitoring
by the Board, protection of minority interests and rights, equitable treatment of all shareholders
as well as superior transparency and timely disclosure. The Aditya Birla Group
Values - Integrity; Commitment; Passion; Seamlessness and Speed also reflect this philosophy.
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:
BOARD OF DIRECTORS
• Composition
Your Company’s Board comprises of 12 (twelve) directors, which include the Managing
Director and 4 (four) independent directors.
Director Executive/Non-Executive/Independent1
Mr. Kumar Mangalam Birla Non-Executive
Mrs. Rajashree Birla Non-Executive
Mr. R. C. Bhargava Independent
Mr. G. M. Dave Independent
Mr. Y. M. Deosthalee Non-Executive
Mr. N. J. Jhaveri2 Independent
Dr. S. Misra Non-Executive
Mr. V. T. Moorthy Non-Executive
Mr. J. P. Nayak Non-Executive
Mr. S. Rajgopal UTI Nominee, Independent
Mr. D. D. Rathi Non-Executive
Mr. S. Misra3 Managing Director
1. Independent Director means a director as defined under Clause 49 of the Listing Agreement.
2. Mr. N. J. Jhaveri was appointed as an Additional Director w.e.f. 16th October, 2006.
3. Mr. S. Misra was inducted into the Board as Additional Director and appointed Managing Director
w.e.f. 16th October, 2006 for a period of three years.
4. 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.
24
Your Company’s Board plays a primary role in ensuring good governance and functioning
of your Company. The Board consists of professionals from diverse fields and has vast
experience in their respective areas. The Board’s role, functions, responsibility and
accountability are clearly defined. 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 guides the management in achieving its goals and
creating value for all stakeholders. Apart from the matters statutorily required to be placed
before the Board, the working of all Units of your Company are also placed before
the Board.
• Attendance of each Director at the Board meetings and the last AGM
Director No. of Board Meetings Attended Last
AGM@
Held Attended
Mr. Kumar Mangalam Birla 7 7 Yes
Mrs. Rajashree Birla 7 6 No
Mr. R. C. Bhargava 7 7 Yes
Mr. G. M. Dave1 7 2 Yes
Mr. Y. M. Deosthalee 7 3 Yes
Mr. A. R. Gandhi2 7 Nil No
Mr. Y. P. Gupta3 7 Nil No
Mr. N. J. Jhaveri4 7 2 No
Dr. S. Misra 7 6 Yes
Mr. V. T. Moorthy 7 6 Yes
Mr. J. P. Nayak 7 5 No
Mr. S. Rajgopal 7 7 Yes
Mr. D. D. Rathi 7 7 Yes
Mr. S. Misra5 7 4 Yes
@ Annual General Meeting (AGM) held on 28th August, 2006 at Birla Matushri Sabhagar, 19, New
Marine Lines, Mumbai – 400 020.
1. Appointed Director w.e.f. 7th July, 2006.
2. Resigned as Director w.e.f. 7th July, 2006.
3. Resigned as Director w.e.f. 16th October, 2006.
4. Appointed Director w.e.f. 16th October, 2006.
5. Appointed Director w.e.f. 16th October, 2006.
25
• Number of other Boards or Board Committees in which he/she is a Member or
Chairperson
The details of the Directors with regard to outside directorships, committee positions are
as follows:
No. of outside No. of outside
Director Directorships Held1 Committee Positions Held2
Public Private Member Chairman
Mr. Kumar Mangalam Birla 11 11 — —
Mrs. Rajashree Birla 6 12 — —
Mr. R. C. Bhargava 10 3 6 2
Mr. G. M. Dave 5 — 1 1
Mr. Y. M. Deosthalee 7 — 2 2
Mr. N. J. Jhaveri 12 2 5 3
Dr. S. Misra 3 — — —
Mr. V. T. Moorthy 1 — — —
Mr. J. P. Nayak 8 — 2 4
Mr. S. Rajgopal 1 1 — —
Mr. D. D. Rathi 6 1 1 —
Mr. S. Misra 5 — 2 —
1. Excluding directorship in foreign companies and companies under Section 25 of the Companies Act, 1956.
2. Only two Committees viz. the Audit Committee and the Shareholders’ / Investor Grievance Committee
of all public limited companies are considered.
• Number of Board meetings held, dates on which held and number of Directors present
Date of Board Meeting City Board Strength No. of Directors

present
24th April, 2006 Mumbai 11 6
7th July, 2006 Mumbai 11 8
th
25 July, 2006 Mumbai 11 8
16th October, 2006 Mumbai 12 8
7th December, 2006 Mumbai 12 9
18th January, 2007 Mumbai 12 12
12th March, 2007 Mumbai 12 10
26
• Remuneration of Directors and their shareholding in your Company
Details of sitting fees paid to the Non-Executive Directors for attending Board meetings
and their shareholding in your Company are as under:
Director Sitting fees paid No. of shares
(Rs.) held
Mr. Kumar Mangalam Birla 1,40,000 400
Mrs. Rajashree Birla 1,20,000 400
Mr. R. C. Bhargava 1,40,000 —
Mr. G. M. Dave 40,000 —
Mr. Y. M. Deosthalee 60,000 1,773
Mr. N. J. Jhaveri 40,000 —
Dr. S. Misra 1,20,000 —
Mr. V. T. Moorthy 1,20,000 420
Mr. J. P. Nayak 1,00,000 1,276
Mr. S. Rajgopal 1,40,000 —
Mr. D. D. Rathi 1,40,000 —
Mr. 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
Director with other Remuneration paid during 2006-07
Directors
All elements of Fixed component Service contracts, Stock option
remuneration & performance notice period, details, if any
package i.e. linked incentives, severance fee
salary, benefits, alongwith
bonuses, performance
pensions etc. (a) criteria (b)
Mr. S. Misra — Rs. 2.36 crores Rs. 1 crore See note (c) See note (d)
(a) Mr. S. Misra was appointed Managing Director of your Company w.e.f. 16th October, 2006. Remuneration
of Rs. 2.36 crores includes Rs. 1.11 crores paid to him for the period 1st April, 2006 to 15th October,
2006 as Manager & CEO.
(b) Mr. S. Misra was paid a sum of Rs. 1 crore towards performance bonus linked to achievement of targets
for the years 2004-05 and 2005-06 as Manager & CEO.
(c) Appointment of Mr.Misra as Managing Director is subject to termination by three months notice in
writing on either side.
(d) Your Company has not granted any stock options.
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.
27
AUDIT COMMITTEE
• Brief description of terms of reference
Your Company has an Audit Committee at the Board level which acts as a link between
the Management, the Statutory and Internal Auditors and the Board of Directors and
oversees the financial reporting process. The primary objective of the Committee is to
monitor and provide effective supervision of the Management’s financial reporting process.
The terms of reference / power of the Audit Committee are in accordance with Clause 49
of the Listing Agreement.
The Audit Committee has the following powers:
- To investigate any activity within its terms of reference.
- To seek information from any employee.
- To obtain outside legal or other professional advice.
- To secure attendance of outsiders with relevant expertise, if it considers necessary.
The role of the Audit Committee includes the following:
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 Auditors 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
Companies Act, 1956.
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, performance of Statutory and Internal Auditors,
adequacy of the internal control systems.
28
7. 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.
8. Discussion with Internal Auditors any significant findings and follow up there on.
9. 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.
10. Discussion with Statutory Auditors before the audit commences, about the nature and
scope of audit as well as post-audit discussion to ascertain any areas of concern.
11. 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; and
5. The appointment, removal and terms of remuneration of the Chief Internal Auditor.
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 been mandated to periodically review the procedures laid down
by your Company for assessing and managing risks.
• Composition, name of Members and Chairperson
All the Members of the Audit Committee are financially literate and Independent Directors
according to the definition laid down in Clause 49 of the Listing Agreement.
Mr. R. C. Bhargava is the Chairman of the Committee. The other Members of the Committee
are Mr.G.M.Dave and Mr.S.Rajgopal.
Mr.D.D.Rathi, Director of your Company and Wholetime Director & Chief Financial
Officer of Grasim Industries Limited, the holding company and Mr.K.C.Birla, Chief
Financial Officer of your Company are permanent invitees to the Audit Committee. The
Statutory and Internal Auditors of your Company are also invited to the Audit Committee
Meetings. The Company Secretary acts as the Secretary to the Committee.
29
• Meetings and attendance during the year
During the year, the Audit Committee met 8 times to deliberate on various matters. The
meetings were held on 24th April, 2006; 7th July, 2006; 25th July, 2006; 29th August, 2006;
16th October, 2006; 17th November, 2006; 18th January, 2007 and 26th February, 2007.
The details of attendance and sitting fees paid are as follows:
No. of meetings Sitting Fees paid
Name of Member
Held Attended (Rs.)
Mr. R. C. Bhargava 8 8 1,60,000
Mr. G. M. Dave 8 5 1,00,000
Mr. S. Rajgopal 8 7 1,40,000
Mr. A. R. Gandhi resigned as Director w.e.f. 7th July, 2006 and ceased to be a Member of
the Audit Committee. Mr. G. M. Dave was inducted as a Member of the Audit Committee
w.e.f. 7th July, 2006.
SHARE TRANSFER AND SHAREHOLDER / INVESTOR GRIEVANCE
COMMITTEE
A “Share Transfer and Shareholder / Investor Grievance Committee” has been constituted
at the Board level, under the Chairmanship of a Non-Executive, Independent Director.
The Committee looks into issues relating to shares / debentureholders, including transfer/
transmission of shares/debentures, issue of duplicate share/debenture certificates,
non-receipt of dividend, Annual Report, shares after transfers and delay in transfer of
shares. The Committee meets to review the status of investor grievances, dematerialisation
/ rematerialisation of shares and debentures as well as systems and procedures followed to
track investor complaints and suggest measures for improvement from time to time. During
the year the Committee met two times.
The composition of the Committee, meetings held and attended and the sitting fees paid
are as follows:
Name of Member No. of meetings Sitting fees paid
Held Attended (Rs.)
Mr. R. C. Bhargava 2 2 40,000
Dr. S. Misra 2 1 20,000
Mr. 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.
30
• Name of Non-Executive Director heading the Committee
Mr.R.C.Bhargava is the Chairman of the Share Transfer and Shareholder / Investor Grievance
Committee.
• Name and designation of the Compliance Officer
Mr.S.K.Chatterjee, Company Secretary, acts as Secretary to the Committee and is also the
Compliance Officer.
• Number of shareholders’ complaints received / 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.
GENERAL BODY MEETINGS

• Location and time, where last 3 Annual General Meetings (AGMs) held
Year Type Location Date Time
2006 AGM Birla Matushri Sabhagar, 28th August, 2006 2.00 pm
19, New Marine Lines,
Mumbai – 400 020
2005 AGM Birla Matushri Sabhagar, 24th August, 2005 2.00 pm
Mumbai – 400 020
2004 AGM Birla Matushri Sabhagar, 11th October, 2004 2.00 pm
Mumbai – 400 020
• Whether special resolutions passed in the previous 3 AGMs.

Yes, the following resolutions were passed as special resolutions:
At the AGM held on 11th October, 2004:
i. alteration of the Articles of Association of your Company.
ii. change in name of your Company.
• Whether any special resolution passed last year through postal ballot – details of
voting pattern
Yes.
The Postal Ballot was conducted pursuant to the provisions of Section 192A of the
Companies Act, 1956 read with the Companies (Passing of the Resolution by Postal
31
Ballot) Rules, 2001, on the Special and Ordinary Resolutions set out in Notice dated
7th December, 2006 seeking consent of the Members of your Company for:
(1) Issuing equity shares under the Employee Stock Option Scheme–2006 (ESOS-2006) to
the employees of your Company (Resolution No. 1);
(2) Issuing equity shares under the Employee Stock Option Scheme–2006 (ESOS-2006) to
the employees of your Company’s holding/subsidiary company(ies) (Resolution No. 2);
(3) Revision in remuneration of Mr. S. Misra as Manager of your Company (Resolution
No. 3);
(4) The appointment of Mr. S. Misra as Managing Director of your Company (Resolution
No. 4)
The results of the Postal Ballot are:
Sr. Particulars Resolution No. 1 Resolution No. 2 Resolution No. 3 Resolution No. 4
No. Special Resolution Special Resolution Ordinary Resolution Ordinary Resolution
No. of No. of No. of No. of No. of No. of No. of No. of
Postal Ballot Shares Postal Ballot Shares Postal Ballot Shares Postal Ballot Shares
Forms Forms Forms Forms
1. Valid Postal Ballot Forms received 9,328 8,26,19,207 9,311 8,26,18,766 9,300 8,26,17,896 9,296 8,25,67,938
2. Postal Ballot Forms with assent 8,481 8,21,90,340 8,143 8,21,69,840 8,336 8,25,59,020 8,693 8,25,28,051
for the resolution (99.48%) (99.46%) (99.93%) (99.95%)
3. Postal Ballot Forms with dissent 847 4,28,867 1,168 4,48,926 964 58,876 603 39,887
for the resolution (0.52%) (0.54%) (0.07%) (0.05%)
All the above resolutions were approved by the Members with requisite majority.
• Person who conducted the postal ballot exercise

Mr. Sanjay Shringarpure, Company Secretary in Whole-time Practice, Mumbai was
appointed as Scrutinizer for conducting the Postal Ballot voting process in a fair and
transparent manner.
SUBSIDIARY COMPANY
Your Company does not have any material non-listed Indian subsidiary company. The Audit
Committee reviews the financial statements of the unlisted subsidiary companies. The minutes
of the Board meetings as well as statement of all significant transactions of the unlisted
subsidiary companies are placed before the Board of your Company for their review.
DISCLOSURES
• Disclosures on materially significant related party transactions that may have potential
conflict with the interests of the Company at large
Your Company places all the aforesaid details before the Audit Committee periodically.
Particulars of related party transactions are listed out in Schedule 21(B)(12) of the Accounts.
However, all these transactions are on normal commercial arm’s length basis.
32
• Disclosure of Accounting treatment
Your Company has followed all relevant Accounting Standards while preparing the financial
statements.
• Risk Management
The Audit Committee of the Board has been mandated to periodically review the procedures
laid down by your Company for assessing and managing risks. The Audit Committee
reviewed the risks identified and the mitigation plan for minimising risks.
• 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 the Company, penalties, strictures imposed on the
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.
• Shareholders
— Details of the Directors seeking re-appointment/appointment at the ensuing Annual
General Meeting (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).
• 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.
Apart from the above, your Company has constituted a Finance Committee and an ESOS
Compensation Committee of the Board.
33
• 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 matters relating to excise, sales tax, income
tax, customs and other judicial or quasi judicial authorities. During the year, the
Committee met twice — 25th May, 2006 and 7th December, 2006.
• ESOS Compensation Committee
The Board of Directors at its meeting held on 7th December, 2006 constituted an
“ESOS Compensation Committee” for formulating the Employee Stock Option Scheme
– 2006 (ESOS-2006) and for implementing, administering and supervising the same.
The Committee comprises of the following Directors viz. Mr. Kumar Mangalam Birla,
Mr. G. M. Dave and Mr. S. Rajgopal.
MEANS OF COMMUNICATION
• Quarterly results
— Which newspapers normally published in
Newspaper Cities of Publication
Business Standard All editions
Economic Times Mumbai
Loksatta / Maharashtra Times Mumbai
— Any website, where displayed www.ultratechcement.com

www.adityabirla.com
— Whether the Company Website displays
All official news releases Yes
Presentation made to Institutional Investors/Analysts No
34
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, 2007.
For UltraTech Cement Limited
Mumbai S.Misra
21st April, 2007 Managing Director
CEO/CFO CERTIFICATION
The Board of Directors
We, to the best of our knowledge and belief, certify that:
1. We have reviewed the financial statements, read with the cash flow statement of UltraTech
Cement Limited (the Company) for the year ended 31st March, 2007:
(i) these statements do not contain any untrue statement of a material fact or omit to state
a material fact that might be misleading with respect to the statements made;
(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 no transactions entered into by the Company during the year which are fraudulent,
illegal or violative of the Company’s Code of Conduct;
3. The Company’s other certifying Officers and 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. The Company’s other certifying Officers and We, have disclosed based on our most recent
evaluation, wherever applicable, 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) all 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.
For UltraTech Cement Limited

Mumbai K.C.Birla S.Misra
21st April, 2007 CFO Managing Director
35
SHAREHOLDER INFORMATION
1. Annual General Meeting
— Date and Time : 20th July, 2007, 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, 2007
30th June, 2007
— Financial reporting for the half year ending : End October, 2007
30th September, 2007
— Financial reporting for the quarter ending : End January, 2008
31st December, 2007
— Financial reporting for the year ending : End April, 2008
31st March, 2008
— Annual General Meeting for the year ended : End July/August, 2008
31st March, 2008
3. Dates of Book Closure : 13th July, 2007 to 20th July, 2007
(both days inclusive)
4. Interim Dividend Payment Date : 26th March, 2007
5. Registered Office : UltraTech Cement Limited
“B” Wing, Ahura Centre,
2nd Floor, Mahakali Caves Road,
Andheri (East), Mumbai 400093.
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 400023. Dalal Street, Mumbai 400023.
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 400051. Bandra (East), Mumbai 400051.
Note: Listing fees for the year 2007-08 has been paid to the Bombay Stock Exchange Limited and the
National Stock Exchange of India Limited.
36
(b) Name and address of Trustees : UTI Bank Limited
for the Debentureholders 111, Maker Towers ‘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 – 400 025
Tel: (022) 2497 8066
Fax: (022) 2497 8060
7. Stock Code : ISIN INE481G01011
Stock Code Reuters Bloomberg
Bombay Stock Exchange Limited 532538 ULTC.BO UTCEM IN
National Stock Exchange of India Limited ULTRACEMCO ULTC.NS NUTCEM IN
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-06 885.00 689.90 859.65 1,692,014 889.00 685.00 854.10 2,623,498
May-06 883.90 585.00 605.45 1,642,231 900.00 588.00 602.05 3,193,434
Jun-06 751.85 500.50 749.95 1,423,384 749.45 495.00 747.70 2,355,503
Jul-06 761.00 599.00 722.10 467,843 760.00 600.00 722.25 855,714
Aug-06 781.40 699.00 769.00 643,184 781.40 710.20 769.35 1,165,678
Sep-06 921.40 762.20 891.15 693,337 922.00 762.00 892.75 1,363,873
Oct-06 919.75 860.00 880.50 615,295 940.00 848.00 882.75 1,109,624
Nov-06 936.50 860.00 898.75 614,249 938.00 860.00 897.45 1,137,293
Dec-06 1,155.00 895.30 1,096.90 742,681 1,153.00 890.00 1,099.65 1,463,466
Jan-07 1,204.95 985.10 993.70 562,769 1,250.00 985.00 995.15 1,587,052
Feb-07 1,140.05 820.00 891.10 685,717 1,141.00 805.00 888.05 2,228,768
Mar-07 928.00 715.00 770.45 940,126 919.00 713.00 772.10 2,188,006
37
9. Stock Performance:
200
180
160
140
120
100
80
60
Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07
Sensex UltraTech Nifty
10. Stock Performance and Returns:

Absolute Returns (in %)
(In Percentage) 1 Year 3 Years 5 Years
UltraTech 12.56 — —
BSE Sensex 15.89 133.82 276.79
NSE Nifty 12.31 115.68 238.32
Annualised Returns (In %)
(In Percentage) 1 Year 3 Years 5 Years
UltraTech 12.56 — —
BSE Sensex 15.89 32.73 30.36
NSE Nifty 12.31 29.20 27.59
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 400099.
change of address) Tel: (022) 2821 5168 / 2834 8218
Fax : (022) 2837 5646
Email: sharepro@vsnl.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 have been authorised to approve the
transfers exceeding 5,000 shares under one transfer deed.
38
The RTA attends to investor grievances in consultation with the Secretarial Department of
your Company.
2006-07 2005-06
Transfer Period No. of No. of % No. of No. of %
(in days) transfers shares transfers shares
1 – 15 1,565 34,625 48.69 1,722 55,565 48.68
16 – 20 361 13,399 11.23 969 32,782 28.73
21 – 30 1,288 44,390 40.08 791 25,786 22.59
Total 3,214 92,414 100.00 3,482 114,133 100.00
Number of pending share transfers : 22 transfers in respect of 721 shares pending as
as at 31st March, 2007 registered notices to sellers have been issued.
13. Investor Services:
Complaints received during the year
Nature of complaints 2006-07 2005-06
Received Cleared Received Cleared
Relating to Transfer, Transmission,
Dividend, Interest, Demat & Remat 21 21 45 45
and Change of address etc.
Legal proceedings on share transfer : There are no major legal proceedings relating to
issues, if any. transfer of shares.
14. Distribution of Shareholding as on 31st March :
2007 2006
No. of % of No. of % No. of % of No. of %
No. of equity share share shares share share share shares share
shares held holders holders held holding holders holders held holding
1 – 100 258,881 89.00 7,842,953 6.30 251,388 88.21 8,194,014 6.59
101 – 200 18,822 6.47 2,797,601 2.25 19,563 6.87 2,907,473 2.34
201 – 500 9,127 3.14 2,893,342 2.32 9,588 3.36 3,043,010 2.45
501 – 1000 2,495 0.86 1,778,311 1.43 2,744 0.96 1,971,619 1.58
1001 - 5000 1,323 0.45 2,471,605 1.99 1,428 0.50 2,672,952 2.15
5001-10000 92 0.03 652,631 0.52 99 0.04 696,917 0.56
10001 & above 153 0.05 106,049,436 85.19 169 0.06 104,912,636 84.33
Total 290,893 100.00 124,485,879 100.00 284,979 100.00 124,398,621 100.00
39
15. Category of Shareholding as on 31st March :
2007 2006
Category No. of % of No. of % No. of % of No. of %
share share shares share share share shares share
holders holders held holding holders holders held holding
Promoters &
Promoter Group 5 0.00 65,947,119 52.97 2 0.00 63,542,320 51.08
Banks/MFs / FIs
Mutual Fund
& UTI 38 0.01 2,497,719 2.01 55 0.02 4,027,732 3.24
Banks & FI’s 104 0.04 89,919 0.07 101 0.03 58,108 0.04
Insurance
Companies 12 0.00 7,381,023 5.93 24 0.01 7,772,423 6.25
Foreign Investors
FIIs 171 0.06 11,647,362 9.36 144 0.05 9,327,078 7.50
GDRs 1 0.00 422,044 0.34 2 0.00 732,132 0.59
NRIs/OCBs 3,509 1.21 728,504 0.58 3,442 1.21 805,924 0.65
Corporates 2,244 0.77 16,931,156 13.60 2,413 0.85 17,937,048 14.42
Others 284,809 97.91 18,841,033 15.14 278,796 97.83 20,195,856 16.23
Total 290,893 100.00 124,485,879 100.00 284,979 100.00 124,398,621 100.00
Others Others
15.14% 16.23%
Corporates Corporates
13.60% Promoters 14.42% Promoters
& Promoter & Promoter
Group Group
52.97% 51.08%
Foreign Foreign
Investors Investors
10.28% 8.74%
Insurance Insurance
Banks/MFs/FI's Banks/MFs/FI's
Companies Companies
2.08% 3.28%
5.93% 6.25%
2007 2006
16. Dematerialisation of shares : 95.84% of outstanding equity have been dematerialised
and liquidity as on 31st March, 2007. Trading in equity shares of your
Company is permitted only in the dematerialised form.
17. Details on use of public funds : Not Applicable
obtained in the last three years
18. Outstanding GDR/Warrants and : 422,044 GDRs are outstanding as on 31st March, 2007.
Convertible Bonds Each GDR represents one underlying equity share.
There are no warrants/convertible bonds outstanding
as at the year end.
40
19. Plant Locations :
Andhra Pradesh Awarpur Gujarat
Cement Works Cement Works Cement Works
Bhogasamudram, P.O. Awarpur Cement Project P.O. Kovaya - 365541,
Tadipatri Mandal, Taluka : Korpana, Taluka - Rajula,
Anantapur District, Dist. Chandrapur Dist. Amreli,
Andhra Pradesh 515 415 Maharashtra 442 917 Gujarat
Tel: 08558 - 288847/41 Tel: 07173-266323 Tel: 02794 - 283034
Fax: 08558-288821/31 Fax: 07173-266339 Fax:02794 - 283036
Hirmi Jafrabad Arakkonam
Cement Works Cement Works Cement Works
Post Hirmi P. B. No. 10, Chitteri Village,
Taluka Simga, Dist. Raipur, Village:Babarkot, District Vellore,
Chhattisgarh Taluka:Jafrabad Arakkonam 631 003,
Pin 493 195 Dist.Amreli,Gujarat 365 540 Tamil Nadu
Tel: 07726-281269 Tel:02794-245103 Tel: 04177 - 293291
Fax: 07726-281268 Fax: 02794-245110
Jharsuguda Cement Works Magdalla Cement Works Ratnagiri Cement Works
Near Dhutra Railway Station, Near Magdalla Port, MIDC Industrial Estate,
P.O. Arda 768 202 Dumas Road Zadgaon Block, Ratnagiri,
Dist. Jharsuguda, Orissa Surat, Gujarat 395 007 Maharashtra 415 639
Tel: 06645-283161 Tel:0261-2725175 Tel:02352-223679
Fax:06645-283108 Fax: 0261-2726952 Fax: 02352-221807
West Bengal Cement Works
Near EPIP Plot, Muchipara,
Post: Rajbandh, Durgapur
Pin - 713 212
Tel: 0343-2533029
Fax:0343-2533358
20. Investor Correspondence:
Registered Office: Registrar & Transfer Agent:
'B' Wing, Ahura Centre Sharepro Services (India) Private Limited
2nd Floor, Mahakali Caves Road, Satam Estate, 3rd floor, Above Bank of Baroda,
Andheri (East), Mumbai 400 093 Cardinal Gracious Road, Chakala
Tel: (022) 66917800 Andheri (East), Mumbai 400099
Fax: (022) 66928109 Tel: (022) - 28215168 / 28348218
Email: sharesutcl@adityabirla.com; Fax: (022) - 2837 5646
kamalrathi@adityabirla.com Email: sharepro@vsnl.com
In terms of SEBI Circular MIRSD/DPS III//Cir-01/07 dated 22nd January, 2007, your Company has designated
sharesutcl@adityabirla.com as the exclusive e-mail ID for redressel of investor complaints. This email ID is
also displayed on your Company's website www.ultratechcement.com.
41
21. Per Share Data :
2006-07 2005-06
Net Earning (Rs. Crs.) 782.28 229.76
Cash Earning (Rs. Crs.) 991.83 441.04
EPS (Rs.) 62.84 18.46
EPS Growth (%) 240% 7926 %
CEPS (Rs.) 79.67 35.43
Dividend Per Share (Rs.) 4.00 1.75
Dividend Payout (%) 40% 17.50 %
Book Value Per Share (Rs.) 141.69 83.40
Price to Earning* 12.26 37.68
Price to Cash Earnings* 9.67 19.32
Price to Book Value* 5.44 8.21
* Based on Stock Price as on 31st March
22. OTHER USEFUL INFORMATION FOR SHAREHOLDERS
Unpaid/Unclaimed Dividends
Dividend warrants in respect of the year ended 31st March, 2006, warrants in respect of
interim dividend declared in March, 2007 and warrants in respect of fractional entitlement
to shareholders of the erstwhile Narmada Cement Company Limited have been despatched
to the shareholders at the addresses registered with your Company. Those shareholders
who have not yet received the dividend / fractional entitlement 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 provides 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 at
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 can 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.
42
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 Securities
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 No. / DP & Client ID
Nos. as the case may be, in all correspondence with the Company. All correspondences
regarding shares and 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.
Others
1. In terms of the Regulations of NSDL & 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 the 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 the Company,
change in their address / pin code number and Bank Account details promptly by
written request under the signature(s) of sole / first joint holder. Beneficial Owner(s) 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 or its RTA
(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, investors 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.
43
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’ website.
9. Shareholders are requested to give us their valuable suggestions for improvement of
our investor services.
AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of
We have examined the compliance of the conditions of Corporate Governance by
UltraTech Cement Limited for the year ended on March 31, 2007, as stipulated in Clause 49
of the Listing Agreement of the said Company with the Stock Exchange.
The compliance of the conditions 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: 4th May 2007
44
SOCIAL REPORT
Beyond Business
Transcending business, we reach out to the weaker sections of society residing near our Units.
We believe it is our collective responsibility to narrow the inequities that exist in our country.
Our social projects therefore address issues of deep relevance to human society, such as
poverty alleviation through sustainable development and livelihood processes, healthcare,
education, societal change and infrastructure development.
Your Company’s social projects are carried out under the aegis of the Aditya Birla Centre for
Community Initiatives and Rural Development, led by Mrs. Rajashree Birla, your Director.
For the year 2006-07 we have made significant progress. A summary:
In Health Care:
Medical camps were conducted across your Company’s Units, wherein the villagers were
examined and provided the necessary treatment. Emphasis is given on preventive health
care through vaccinations and awareness on proper nutrition. Curative services are provided
for cataract, tuberculosis, malaria and dental
problems.
Pre and post natal care for women were
done through doorsteps services and the
concept of planned families promoted.
An intensive programme on child health
through village and school checkups are of
special mention.
AIDS awareness camps were conducted to
build greater awareness amongst students
Polio Immunisation centre and the people amidst whom we work.
Some of the other core areas of work conducted were - Pulse polio programme and
provision of safe drinking water.
“Our vision is to make a qualitative difference to the lives of the weaker sections of society
in proximity to our plants and in doing so improve the human development index of our
nation.” – Mrs. Rajashree Birla
Education:
Nurturing the child through preschool education in the form of Balwadis, Bal Sanskar
Kendras, harnessing talent through merit scholarships (mostly girl students), enrollment
drives through campaigns, minimising the drop out rate by counseling parents, conducting
adult literacy classes are our main activities in the field of education.
Children and adults in the host communities have enrolled in the Balwadis, Bal Sanskar
Kendras and Adult literacy camps.
45
Merit Scholarships to motivate excellence were awarded to students.
To enhance the capacity of the learners, we organise vocational training for the youth and
neo literates.
Sustainable Livelihood:
Agriculture – farmers benefit through farm-based programmes, farmer training, nursery
raising, seed multiplication and intercropping.
Cattle were immunised in animal husbandry camps.
Water harvesting structures, such as hand-pumps installation, erecting check-dams, ponds,
roof-water harvesting and digging wells support families in the host communities.
Women Self-Help Groups:
Organising women to form small thrift
and credit groups and training them for
micro-finance activities has brought
about visible change in the state of the
families. Self Help Groups have
enabled the empowerment of women
living in villages surrounding your
Company’s Units.
Women were given training in income
generation activities like tailoring,
incense sticks making, weaving,
Women self-help activity
mushroom cultivation and bee keeping.
Most of them are self employed today and invoke a culture of entrepreneurship and
women empowerment.
Social Welfare:
To support the weaker sections of the society particularly the scheduled castes and tribes,
organising of mass marriage programmes, awareness programmes against prevailing social
evils are organised. Orientation programmes on Panchayati Raj, Government Schemes,
Right to Information and Consumer Rights are organised to empower the poor.
Infrastructure:
Infrastructure development is supported by your Company through the construction and
repair of approach roads, setting up troughs and drinking water structures, health centres
and facilities for the under-served communities, including construction of low cost toilets.
In our own humble way we try to make a difference. At the end of the day we fully realise that
even though we work in around 3,700 villages at the Group level, so much more needs to be
done, given that we are a nation of over 6 lac villages.
46
ENVIRONMENT REPORT
Your Company subscribes to triple-bottom line accountability wherein social, economic and
environmental responsibility is an intrinsic part of our business growth and performance.
At all of your Company’s Units, clean technologies and processes that combine both economic
progress and sustainable environment are adopted. Most of your Company’s Units are ISO
14001 Environment Management Systems Certified and adhere to OHSAS 18001 standards.
During the year, the Cement Business of the Aditya Birla Group, of which your Company
forms a part, became a participating member of the Cement Sustainability Initiative (CSI).
CSI is a program of the World Business Council for Sustainable Development (WBCSD). The
agenda of the WBCSD focuses on six critical issues:
• Climate protection and CO2 management
• Responsible use of fuels and materials
• Employee health and safety
• Emission reduction
• Local impact on land and communities
• Reporting and communications
As a participating member of the CSI, your Company will have to fulfill guidelines set by
CSI, report on defined Key Performance Indicators on the six major initiatives annually and
also fix targets for improvement.
You will be glad to know that your Company is one of the few cement companies in the world
to be awarded Certified Emission Reduction Credits (CERs) by the United Nations Framework
47
Convention for Climate Change (UNFCCC) under the Clean Development Mechanism (CDM)
as per Kyoto Protocol.104,603 CERs were awarded for the CDM Project on Optimum Utilisation
of Clinker by Production of Pozzolona Cement at your Company’s Unit in Andhra Pradesh for
the period 1st April, 2000 to 31st March, 2006. Your Company also commissioned a 4 MW
power generation unit utilising Cooler Waste gases at its Unit in Andhra Pradesh. This is the
second such installation in a cement plant in the world and the first in India. Several other
CDM Projects are under various stages of implementation.
Whitehoppleman, an independent UK based consulting organisation conducts annual global

benchmarking surveys for the cement industry. An assessment of your Company’s performance
on sustainability issues vis-a-vis the findings of the surveys indicate that your Company
compares favourably with the best globally, on a continuos basis.
Alongside, educating and sensitising all of our stakeholders on the need to conserve natural
resources is an ongoing process. We solicit suggestions from all our stakeholders, including
employees at all levels, on how to better our environment protection measures.
Your Directors and your Company’s employees are totally committed to sustainable
development. Their commitment is visible in the green look that the Units sport and heard in
the chirping of the winged guests at the crack of dawn.
Green surroundings at Andhra Pradesh Cement Works (APCW)
48
DIRECTORS’ REPORT TO THE SHAREHOLDERS
Dear Shareholders,
We are pleased to present the Seventh Annual Report together with the Audited Accounts of
your Company for the financial year ended 31st March, 2007:
FINANCIAL RESULTS
(Rs. in crores)
2006-07 2005-06
Gross Turnover 5,484.35 3,785.29
Gross Profit 1,392.44 501.62
Less: Depreciation 226.25 216.03
Profit before Tax 1,166.19 285.59
Tax expenses 383.91 55.83
Profit after tax 782.28 229.76
Add:Balance brought forward from Previous Year 180.57 10.11
Surplus available for Appropriation 962.85 239.87
Appropriation:
Debenture Redemption Reserve 30.92 9.45
General Reserve 100.00 25.00
Dividend 49.79 21.79
Corporate Tax on Dividend 6.98 3.06
Balance transferred to Balance Sheet 775.16 180.57
[The figures for the previous year (2005-06) include those of the erstwhile Narmada Cement Company Limited
for the period 1st October, 2005 to 31st March, 2006 and therefore the accounts for the year under review
(2006-07) are not comparable with the previous year]
OVERVIEW
Your Company’s turnover at Rs.5,484.35 crores was up by 45% compared to Rs.3,785.29
crores achieved in the previous year. After providing for Depreciation - Rs. 226.25 crores
(Rs. 216.03 crores) and Tax - Rs. 383.91 crores (Rs.55.83 crores) the Profit After Tax stood at
Rs.782.28 crores (Rs.229.76 crores).
DIVIDEND
During the year, your Company paid an interim dividend of Rs.4 per equity share of Rs.10
each. The total pay-out on account of dividend was Rs.56.77 crores (including dividend tax of
Rs.6.98 crores) compared to Rs.24.85 crores in the previous year. Considering the growth
plans of your Company and the need to plough back profits for its proposed capital expenditure,
the Directors have recommended that interim dividend be treated as final dividend.
49
REVIEW OF OPERATIONS
The year under review witnessed improved performance, driven by higher market realisation,
enhanced capacity utilisation and greater volumes.
Average realisation improved by 29% from Rs.2,122 per MT in FY06 to Rs.2,735 per MT in
FY07. Cement production was 14.64 MMT as compared to 13.33 MMT in the previous year.
Effective capacity utilisation (cement produced + clinker sold) was 101% compared to 89 %
during the previous year. Aggregate sales volume at 17.67 MMT (15.55 MMT) was higher by
13.63%. Domestic sales volume which constituted around 80 % of the aggregate sales volume
rose from 12.97 MMT in FY06 to 14.21 MMT in FY07, while aggregate exports grew from
2.58 MMT in FY06 to 3.46 MMT in FY07.
CAPITAL EXPENDITURE
Your Company is setting up captive power plants at its Units in Andhra Pradesh, Chattisgarh
and Gujarat. The power plant in Andhra Pradesh will be commissioned in the last quarter of
FY08 and the one in Chattisgarh in the first quarter of FY09. The power plant in Gujarat
will be commissioned in a phased manner, commencing from the last quarter of FY08 and
ending in the second quarter of FY09. These power plants will meet around 80% of your
Company’s power requirement. It will also reduce your Company’s dependence on the State
Grid, supply power at economical rates, thereby reducing the cost of power.
The capacity at your Company’s Unit in Andhra Pradesh is being augmented by 4 mtpa
together with a grinding Unit in Karnataka. Expected to be commissioned in March, 2008, this
will help your Company cater to the growing demand in the markets of South India.
EMPLOYEE STOCK OPTION SCHEME
At a meeting held on 7th December, 2006, the Board of Directors approved the formulation of
an Employee Stock Option Scheme (the Scheme) in terms of the Securities and
Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999. A Committee was also constituted for implementing and
administering the Scheme. Members of your Company have approved formulating the
Scheme by way of resolutions passed through Postal Ballot, results of which were announced
on 17th January, 2007.
In terms of the Scheme a total of 375,000 options would be available for being granted to
eligible employees of your Company. Each option is convertible into one equity share of
Rs.10 each representing 0.30 % of the paid-up equity share capital of your Company.
AWARDS
Your Company was the recipient of the following awards during the year:
• Recipient of the Top Exporter Award from CAPEXIL for the tenth consecutive year
• Safety Management - Silver Award from Greentech Foundation, New Delhi to GCW
50
• Best Limestone Mines in Saurashtra region for Cement from Indian Bureau of Mines to
GCW (Kovaya mines)
• Second prize for overall performance in mines safety week from Directorate General of
Mines Safety to GCW (Kovaya mines)
• Innovative Award for Clinker Cooler Waste Heat Recovery Power Project from CII, Southern
Region to APCW
• Quality control laboratory accreditation by National Accreditation Board for Laboratories
(NABL) for chemical and mechanical testing under ISO/IEC: 17025:2005 to APCW.
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
As perhaps many of you may be aware, the Aditya Birla Group has been judged as
“The Best Employer of India (2007)” and among the Top 20 in Asia by the Hewitt Economic
Times Study and the Hewitt Wall Street Journal Study respectively. While this is a matter of
great pride, it is also validation of the exemplary people processes that go into the making
of a meritocratic organisation like our Group.These people processes are applied universally
to all of the Group Companies across the five continents and your Company is a beneficiary
as well.
Your Company has an enviable track record of managing its intellectual capital successfully.
Fostering people development and harnessing their creative potential to the maximum,
identifying and grooming management talent and leadership development at all levels remain
a priority.
Executives from your Company participated in Competency Honing and Leadership
Development Programmes at Gyanodaya, your Company’s globally benchmarkable Institute
of Management Learning. Management moves across levels to the different Companies and
sectors helped spawn leaders.
Introducing global HR practices, systems and best practices in the areas of talent development,
compensation management, recruitment etc., is enabling and preparing us to address future
challenges effectively. Implementation of People Soft systems, Variable Pay plan and Job
Banding are the major initiatives taken in this direction.
In the recently concluded Organisational Health Study, an overwhelming majority of your
Company’s employees felt happy at work and found it a professionally rewarding and personally
satisfying experience. They said that they would advocate your Company to potential recruits
and looked forward to continue with your Company long term.
The Group’s Corporate Human Resources have played and continue to play a critical role.
51
CORPORATE GOVERNANCE
Your Directors reaffirm their continued commitment to good corporate governance practices.
Your Company adheres to all the major stipulations laid down in this regard, as provided in
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 Report.
SUBSIDIARY COMPANIES
In terms of Section 212 of the Companies Act, 1956, the Accounts alongwith the Report of Directors
and the Auditors’ Report of your Company’s subsidiaries viz. Dakshin Cements Limited (Dakshin)
and UltraTech Ceylinco (Private) Limited (UltraTech Ceylinco) are annexed to this Report.
In line with the provisions of Accounting Standard 21 (AS 21) and Clause 32 of the Listing
Agreement, the duly audited Consolidated Financial Statement has been prepared after considering
the financial statements of your Company’s subsidiaries viz. Dakshin and UltraTech Ceylinco.
FINANCE
CRISIL has re-affirmed the AA+ rating for your Company.
Your Company has raised long term foreign currency loan in the form of External Commercial
Borrowings aggregating to US$ 40 million (Rs.177 crores). The proceeds from this borrowing
will be utilised for the ongoing CAPEX plans of your Company.
Your Company has repaid debentures amounting to Rs. 76 crores. Effective working capital
management resulted in interest costs coming down to Rs. 87 crores as compared to
Rs. 90 crores during the previous year.
Your Company has not invited or renewed deposits from the public/shareholders in accordance
with Section 58A of the Companies Act, 1956.
ENERGY, TECHNOLOGY 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 Companies Act, 1956,
read with the Companies (Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 is annexed hereto as Annexure I and forms part of this Report.
PARTICULARS OF EMPLOYEES
The particulars of employees as required under Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 is annexed hereto as Annexure II
and forms part of this Report.
DIRECTORS’ RESPONSIBILITY STATEMENT
The Audited Accounts for the year under review are in conformity with the requirements of
the Companies Act, 1956 and the Accounting Standards. The financial statements reflect fairly
52
the form and substance of transactions carried out during the year under review and reasonably
present your Company’s financial condition and results of operations.
Your Directors confirm that:
(i) in the preparation of the Annual Accounts, applicable accounting standards have been
followed alongwith proper explanations relating to material departures, if any;
(ii) the accounting policies selected have been applied consistently and judgements 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, 2007 and of the profit of your
Company for the year ended on that date;
(iii) proper and sufficient care has been taken for the maintenance of adequate accounting
records in accordance with the provisions of the Companies Act, 1956 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. Misra, Manager & CEO of your Company was inducted into the Board as Additional
Director and appointed Managing Director with effect from 16th October, 2006. Members of
your Company have conveyed their approval for the appointment of Mr.Misra as Managing
Director through postal ballot, results of which were announced on 17th January, 2007. Upon
his appointment as Managing Director, Mr.Misra has relinquished office as Manager of your
Company.
Mr. N.J. Jhaveri was appointed as an Additional Director of your Company with effect from
16th October, 2006.
Notices pursuant to Section 257 of the Companies Act, 1956 have been received from Members
proposing the above appointments as Director of your Company.
Mr. Y.P. Gupta resigned from the Board with effect from 16th October, 2006. The Board
acknowledges the services rendered by Mr.Gupta during his tenure as Director.
Mr. J.P. Nayak, Mr. Y.M. Deosthalee and Mr. Kumar Mangalam Birla 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 for
the ensuing Annual General Meeting.
AUDITORS
M/s S.B. Billimoria & Co., 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. S.B.Billimoria & Co., have expressed their inability to
53
be re-appointed as Auditors of your Company. It is therefore proposed to appoint M/s. Deloitte
Haskins & Sells, Chartered Accountants, Mumbai as Joint Statutory Auditors and re-appoint
M/s G.P. Kapadia & Co., Chartered Accountants, Mumbai, both of whom are eligible for
appointment / re-appointment respectively.
Based on the recommendation of the Audit Committee, the Board proposes the appointment of
M/s Deloitte Haskins & Sells, Chartered Accountants, Mumbai and the re-appointment of
M/s G.P. Kapadia & Co., Chartered Accountants, Mumbai as Joint Statutory Auditors of your
Company from the conclusion of the ensuing Annual General Meeting until the conclusion of
the next Annual General Meeting. Your Board also proposes the re-appointment of
M/s. Haribhakti & Co., Chartered Accountants, Mumbai as the Branch Auditors of your
Company’s Units at Jafrabad and Magdala in Gujarat and Ratnagiri in Maharashtra, to hold
office from the conclusion of the ensuing Annual General Meeting until the conclusion of the
next Annual General Meeting.
Pursuant to the provisions of the Companies Act,1956, your approval is also being sought for
appointing Branch Auditors in consultation with your Company’s Statutory Auditors, for any
other Branch / Unit which may be opened / acquired in the future, in India or abroad.
Resolutions seeking your approval for these issues are included in the Notice convening the
Annual General Meeting.
The observations made in the Auditors’ Report are self-explanatory and therefore, do not call
for any further comments under Section 217(3) of the Companies Act,1956.
COST AUDITOR
Pursuant to the provisions of Section 233B of the Companies Act, 1956, your Directors have
appointed M/s N.I. Mehta & Co., Cost Accountants, Mumbai as the Cost Auditors to conduct
the Cost Audit of your Company for the financial year ending 31st March, 2008, subject to the
approval of the Central Government.
APPRECIATION
Your Directors wish to place on record their appreciation of the dedication and commitment of
your Company’s employees to the growth of your Company. Their unstinted support has been
and continues to be integral to your Company’s ongoing success.
Your Directors wish to thank the Central and State Governments, banks, financial institutions,
shareholders and business associates for their continued co-operation and support.
For and on behalf of the Board
Mumbai Kumar Mangalam Birla

21st April, 2007 Chairman
54
ANNEXURE I
DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF
ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO AS REQUIRED UNDER 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 Speed Drives
— Water Injection in Top stage cyclones
— Replacement of Preheater fans with energy saving fans
— Usage of Humicool fills for P&V system
b) Additional investments and proposals, if any, being implemented for reduction of

consumption of energy
— Installation of Variable Frequency Drives
— DG waste heat recovery system for Production of Desalinated Water
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
corresponding reduction in the cost of production.
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.
55
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
2006-07 2005-06
1.Electricity
(a) Purchased
Units 000 Kwh 847582 423050
Total Amount Rs. crores 405.70 169.64
Rate/unit Rs. 4.79 4.01
(b) Own generation**
(i) Through Diesel generator
Units 000 Kwh 188908 305267
Units(Kwh) per Ltr. of fuel oil 4.03 4.15
Cost/Unit Rs. 4.91 4.27
(ii) Through Steam Turbine/Generator
Units 000 Kwh 309571 256036
Units(Kwh) per kg of coal 0.73 0.76
(iii) Through Steam Turbine/Generator
Units 000 Kwh 64249 292707
Units(Kwh) per kg of Naphtha 4.73 4.89
(iv) Waste Heat Recovery system
Units 000 Kwh 477.05 —
Cost/Unit Rs. 0.250 —
2. Coal (Slack,Steam & ROM including lighting Coal)
For Co-generation of Steam & Power Tonnes 425246 335008
Total Cost Rs. crores 35.23 29.36
Average rate Rs./Tonnes 828 876
For Process in Cement Plants
Quantity Tonnes 1991666 1981134
Total Cost Rs. crores 543.99 407.98
Average rate Rs./Tonnes 2731 2059
3. Furnace Oil (Including Naphtha)
Quantity K. Ltrs 66184 159240
Total amount Rs. crores 122.70 256.82
Average rate Rs./K ltr 18539 16128
4. Light Diesel Oil (LDO)
Quantity K. Ltrs 1430.87 1508
5. High Speed Diesel Oil (HSD)
Quantity K. Ltrs 265 288
B. CONSUMPTION PER UNIT OF PRODUCTION
Electricity # Kwh /T of Cement 86.93 88.70
Furnace oil $ Ltr /T of Clinker 0.10 0.11
Coal Kcal /T of Clinker 707 703
** Excludes Auxillary & Wheeling
# Excludes non production power consumption
(The figures for the previous year include those of NCCL for the period 1st October, 2005 to 31st March, 2006 and are
therefore not comparable with the current year figures)
$ Furnace oil used for kiln light up
56
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
• Use of Performance improver to enhance Quality
• Increased use of Fly Ash Content in PPC without affecting quality
• Use of 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 conservation and reduction in relative
cost of production
3. Future plan of action
• Commercialisation of alternative fuels
• Optimisation of chemistry of raw mix
• Product development aimed at different customer segments
(Rs. in crores)
4. Expenditure on R&D 2006-07 2005-06
a. Capital Expenditure 1.12 0.58
b. Recurring Expenditure 4.90 5.18
c. Total Expenditure 6.03 5.76
d. Total R& D Expenditure as % of turnover 0.12 0.15
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 in various manufacturing techniques by foreign and Indian experts
and technology suppliers
• Commissioned Waste Heat Recovery power generation system utilising techonology from Israel
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
• Power Recovery from Waste heat and reduction in power cost
3. Information regarding technology imported during the last 5 years : Nil
57
INFORMATION U/S 217 (2A) OF THE COMPANIES ACT,1956, READ WITH THE COMPANIES (PARTICULARS OF EMPLOYEES) RULES,1975 (AS AMENDED) AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE
58
YEAR ENDED 31st MARCH, 2007
(A) EMPLOYED THROUGHOUT THE FINANCIAL YEAR UNDER REVIEW AND WERE IN RECEIPT OF REMUNERATION FOR THE FINANCIAL YEAR IN THE AGGREGATE OF NOT LESS THAN RS.24,00,000/- P.A.
Sl. Name Age Qualifications Designation/Nature Date of Experience Gross Particulars of Last Employment,
No (Yrs) of duties Commencement (Yrs) Remuneration Employer, Last Post, No.of Years
of Employment (Rs.)
1 Agarwal M.B. 40 M Com, FCA Vice President (F&C) 01-09-2004 18 3,151,843 Grasim Industries Limited, Astt.Vice President (F&C), 5 years
2 Bajaj J. 41 B.Com, ACA Jt. President (Finance) 01-04-2005 18 4,235,395 Grasim Industries Limited, Jt. President, 15 yrs 7 months
3 Birla K.C. 48 B.Com, FCA Chief Financial Officer 06-07-2004 22 5,363,659 Grasim Industries Limited, Jt. President, 19 yrs 3 months
ANNEXURE II
4 Chowdhury S. 52 B.E(CIVIL) Jt.President (TASC) 01-04-2004 28 3,079,684 Larsen & Toubro Limited, Jt.Gen.Manager, 14 yrs
5 Kulkarni K.Y.P.K. 55 B.Sc (Hons) Mining Engg., President & Unit Head 01-04-2004 33 4,058,609 Larsen & Toubro Limited,
1st Class Certificate of Gen.Manager, 16 yrs 10 months
Competency (ISM)
6 Mate R.N. 53 B.Com Jt.Ex.President (Marketing) 01-04-2004 30 2,413,382 Larsen & Toubro Limited, Dy.Gen.Manager, 20 yrs 10 months
7 Ram S. 55 B.Tech. (Chem.) Jt. President (PP&B) 01-04-2004 32 2,719,626 Larsen & Toubro Limited, Jt. General Manager, 5 yrs 9 months
8 Reddy C.S. 61 B.Tech(Mech) President & Unit Head 01-04-2004 37 4,203,513 Larsen & Toubro Limited, Vice President, 8 yrs 8 months
9 Shukla V. 53 MA (PM & IR) Chief People Officer 03-01-2005 28 4,356,819 Saurashtra Cement Limited - Corp. Director
HRD, Q & Com - 9 yrs 7 months
(B) EMPLOYED FOR PART OF THE FINANCIAL YEAR UNDER REVIEW (JOINED DURING THE YEAR) AND WERE IN RECEIPT OF REMUNERATION AT THE RATE OF NOT LESS THAN RS,2,00,000/- PER MONTH
Sl. Name Age Qualifications Designation/Nature Date of Experience Gross Particulars of Last Employment,
No (Yrs) of duties Commencement (Yrs) Remuneration Employer, Last Post, No.of Years
of Employment (Rs.)
1 Singh B. 56 B.E. (Mech.) Jt.Ex.President & Unit Head 22-11-2006 32 979,100 Grasim Industries Limited, Jt.EP & Unit Head, 7 Yrs 11 Months
2 Tiwari M.M. 55 B. Tech (Elnx) Jt. Executive President 15-05-2006 29 2,501,134 Grasim Industries Limited, Instrument Engineer- 2 Months
(Technical)
(C) EMPLOYED FOR PART OF THE FINANCIAL YEAR UNDER REVIEW ( LEFT DURING THE YEAR ) AND WERE IN RECEIPT OF REMUNERATION AT THE RATE OF NOT LESS THAN RS,2,00,000/- PER MONTH
Sl. Name Age Qualifications Designation/Nature Date of Date of Experience Gross Particulars of Last Employment,
No (Yrs) of duties Commencement Cessation of (Yrs.) Remuneration Employer, Last Post, No.of Years
of Employment Employment (Rs.)
1 Ali A. 45 B.E. Vice President (Technical) 01-04-2004 30-11-2006 20 2,373,713 Larsen & Toubro Limited, Asst.Gen Manager 5 yrs 9 months
2 Arya S.N. 54 DME Sr.General Manager (Technical) 01-04-2004 31-07-2006 34 961,306 Larsen & Toubro Limited, Asst.Gen.Manager, 21 yrs 4 months
3 Chakravarthy S. 58 B.E. (Mech) President (Head - Projects) 01-04-2004 31-05-2006 36 1,700,401 Larsen & Toubro Limited, Vice President , 19 yrs 6 months
4 Davangeri P.S. 38 B.E. (Mech) Sr. Manager (Purchase) 01-04-2004 08-06-2006 16 641,437 Larsen & Toubro Limited, Manager, 6 yrs 7 months
5 Jain A.K. 62 B.E.(Mech.) President (Unit Head) 01-04-2004 20-08-2006 38 4,697,421 Larsen & Toubro Limited Vice President 9 yrs 3 months
6 Kumar J. 61 B.E. President (Unit Head) 01-04-2004 11-07-2006 37 5,162,746 Larsen & Toubro Limited , Vice President , 35yrs 1 month
7 Mishra A.K. 41 B.Tech, DIM, PGDMM Senior Manager (Technical) 01-04-2004 05-05-2006 18 439,154 Larsen & Toubro Limited, Manager,6 yrs 7 months
8 Razdan Deepak 60 MA, Dip. in Marketing Senior Executive President 01-04-2004 02-07-2006 38 3,109,942 Larsen & Toubro Limited
Management, Dip in (International Marketing) Executive Vice President, 9 yrs 6 months
Basic Management
9 Rajasekar L. 50 B.E. Jt.President ( Technical ) 01-04-2004 05-08-2006 28 2,946,891 Larsen & Toubro Limited, General Manager,20 yrs
10 S.Mohammed Ishaq 35 B.Sc.,M.B.A. Asst.Manager (Technical) 01-04-2004 20-04-2006 11 205,792 Larsen & Toubro Limited , Supervisor , 6 yrs 1 month
11 Shripathi S.I. 37 B.Sc.,(PCM) Senior Officer (Technical) 01-04-2004 17-04-2006 14 219,373 Larsen & Toubro Limited, Supervisor , 11 yrs 6 months
12 Somani R.A. 53 B.E.(Mech.) Ex.President (Unit Head) 16-08-2006 24-11-2006 30 3,187,402 Grasim Industries Limited, Ex. President -23 yrs
13 Vijaykumar B.V.S. 45 DME Senior Manager (Technical) 01-04-2004 27-05-2006 27 580,130 Larsen & Toubro Limited, Manager,18 yrs 9 months
1. Remuneration received includes salary with allowances, bonus & ex-gratia, performance linked payment, contribution to provident and superannuation fund, reimbursement of cash perks, LTA and value of amenities provided as per
Income Tax Rules.
2. Employment is non-contractual in all the above cases subject to one month/three month’s notice from either side depending upon the office held by the employee.
3. None of the above employees is a relative of any Director of the Company.
AUDITORS’ REPORT
TO THE MEMBERS OF ULTRATECH CEMENT LIMITED
1. We have audited the attached Balance Sheet of UltraTech Cement Limited as at
31st March, 2007, 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. These 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
31st March, 2007;
59
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 31st March, 2007 taken
on record by the Board of Directors, we report that none of the directors is disqualified as
on 31st March, 2007 from being appointed as a director under Section 274 (1) (g) of the
Companies Act, 1956.
For S. B. BILLIMORIA & CO. For G. P. KAPADIA & CO.

Chartered Accountants Chartered Accountants
UDAYAN SEN ATUL B. DESAI

Partner Partner
(Membership No.31220) (Membership No.30850)
Mumbai, 21st April, 2007
60
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 is 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 that needed to be entered in the
Register maintained under Section 301 of the Companies Act, 1956.
(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.
61
(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 31st March, 2007 for
a period of more then 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 31st March, 2007 on account of any
dispute are given below:
Name of statute Nature of the dues Amount Period to which Forum where dispute
(Rs in Crs.) the amount relates is pending
(Assessment Years)
Income Tax Act Income Tax 3.58 2004-2006 Appellate Authorities
0.09 2005-2006 Assessing Officers
Value Added Tax Act Value Added Tax 0.78 2005-2006 High Court
and penalty
Sales Tax Act Sales Tax and interest 1.37 1997-1998, High Court
1999-2002
39.62 1985-2004 Tribunal (s)
5.59 1998-2001, Appellate Authorities
2002-2004
3.03 1998-2004 Assessing Officers
62
Name of statute Nature of the dues Amount Period to which Forum where dispute
(Rs in Crs.) the amount relates is pending
(Assessment Years)
Central Excise Act Excise Duty, penalty 0.10 1994-1995 Supreme Court
and interest 3.34 1997-1999 High Court
14.05 1994-1997, Tribunal (s)
1998-2005,
2006-2007
4.18 1994-2006 Appellate Authorities
0.53 2001-2004, Assessing Officers
2006-2007
Service Tax Act Service Tax 1.08 2005-2006 Tribunal (s)
0.55 2003-2006 Appellate Authorities
Customs Act Custom Duty and 0.11 2001-2002 Supreme Court
penalty 0.08 2006-2007 Assessing Officers
(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, securities/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.


Partner Partner
(Membership No.31220) (Membership No.30850)
Mumbai, 21st April, 2007
63
BALANCE SHEET AS AT MARCH 31, 2007
Rs. in Crores
As at
Schedules March 31, 2006
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 124.49 124.40
Share Capital Suspense 1B — 0.09
Reserves and Surplus 2 1,639.29 913.78
1,763.78 1,038.27
Loan Funds
Secured Loans 3 1,151.25 1,221.93
Unsecured Loans 4 427.38 229.90
1,578.63 1,451.83
Deferred Tax Liabilities 560.26 576.96
TOTAL 3,902.67 3,067.06
APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 4,784.70 4,605.38
Less: Depreciation 2,267.42 2,068.21
Net Block 2,517.28 2,537.17
Capital Work-in-Progress 696.95 141.03
3,214.23 2,678.20
Investments 6 483.45 172.39
Current Assets, Loans and Advances
Inventories 7 433.58 379.57
Sundry Debtors 8 183.50 172.55
Cash and Bank Balances 9 89.59 61.60
Loans and Advances 10 253.50 158.80
960.17 772.52
Less:
Current Liabilities & Provisions
Current Liabilities 11 736.71 516.87
Provisions 12 18.47 39.18
755.18 556.05
Net Current Assets 204.99 216.47
TOTAL 3,902.67 3,067.06
Accounting Policies and Notes on Accounts 21 & 22
In terms of our report attached. KUMAR MANGALAM BIRLA

Chairman
For S. B. BILLIMORIA & CO. For G. P. KAPADIA & CO. S. MISRA RAJASHREE BIRLA
Chartered Accountants Chartered Accountants Managing Director R. C. BHARGAVA
G. M. DAVE
N. J. JHAVERI
UDAYAN SEN ATUL B. DESAI K. C. BIRLA S. MISRA
Partner Partner Executive President & CFO V. T. MOORTHY
J. P. NAYAK
S. RAJGOPAL
S. K. CHATTERJEE D. D. RATHI
Mumbai, April 21, 2007 Company Secretary Directors
64
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007
Rs. in Crores
Previous
Schedules Year
INCOME
Gross Sales 5,484.35 3,785.29
Less: Excise Duty 573.52 485.84
Net Sales 4,910.83 3,299.45
Interest & Dividend Income 13 29.82 6.99
Other Income 14 31.64 30.01
Increase / (Decrease) in Stocks 15 (32.54) 39.12
4,939.75 3,375.57
EXPENDITURE
Raw Materials Consumed 16 392.99 284.11
Manufacturing Expenses 17 1,518.58 1,203.29
Purchase of Finished Products 182.43 265.32
Payments to and Provisions for Employees 18 117.22 92.26
Selling, Distribution, Administration and
Other Expenses 19 1,249.26 939.33
Interest 20 86.83 89.64
Depreciation and Obsolescence 226.25 216.03
3,773.56 3,089.98
Profit Before Tax Expenses 1,166.19 285.59

Income Tax Expenses
Provision for Current Tax {(including provision
for Wealth Tax Rs. 0.11 Crore (Previous year 396.00 57.00
Rs. 0.07 Crore) and Interest of Rs. 0.62 Crore
(Previous Year Rs. 0.35 Crore)}
Deferred Tax (16.70) (4.75)
Provision for Fringe Benefit Tax 4.61 3.58
Profit After Tax 782.28 229.76
Balance brought forward from Previous Year 180.57 10.11
Profit Available for Appropriation 962.85 239.87
Appropriations
Interim Dividend paid 49.79 —
Proposed Dividend — 21.79
Corporate Dividend Tax 6.98 3.06
Balance carried to Balance Sheet 775.16 180.57
962.85 239.87
Basic and Diluted Earnings Per Equity Share (in Rs.) 62.84 18.46
Face Value Per Equity Share (in Rs.) 10.00 10.00
Weighted Average Number of Equity Shares (in Nos.) 124,485,879 124,485,879
Accounting Policies and Notes on Accounts 21 & 22
Chairman
G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
65
CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2007
Rs. in Crores
A Cash Flow from Operating Activities: March 31, 2007 March 31, 2006
Profit Before Tax 1,166.19 285.59
Adjustments for:
Depreciation 226.25 216.03
Provision for Doubtful Debts and Advances / (Written back) — (2.81)
Bad Debts Written-off 0.76 0.17
Provision for Retirement Benefits 4.72 2.45
Provision for Mines Reclamation 1.64 —
Interest & Dividend Income (29.82) (6.99)
Interest Expense 86.83 89.64
Unrealised Foreign Exchange (Gain)/Loss (2.29) 0.79
(Profit)/ Loss on Sale of Fixed Assets 0.05 (0.21)
(Profit)/ Loss on Sale of Investment (0.26) (0.08)
Operating Profit Before Working Capital Changes 1,454.07 587.39
Adjustments for:
(Increase)/decrease in Inventories (54.01) (43.05)
(Increase)/decrease in Sundry Debtors (11.71) (11.92)
(Increase)/decrease in Loans and Advances (80.29) 10.78
Increase/(decrease) in Trade Payables and other Liabilities 222.27 63.35
Cash Generated from Operations 1,530.33 606.55
Current Taxes Paid (412.63) (51.89)
Fringe Benefit Tax Paid (4.61) (3.03)
Net Cash from Operating Activities 1,113.09 551.63
B Cash Flow from Investing Activities:
Purchase of Fixed Assets (765.68) (217.29)
Sale of Fixed Assets 0.41 1.13
(Increase) / decrease in Current Investments (311.00) (148.00)
Profit on Sale of Investments 0.26 0.08
Interest and Dividend Received 29.76 6.84
Net Cash used in Investing Activities (1,046.25) (357.24)
C Cash Flow from Financing Activities:
Repayment of Long Term Borrowings (76.00) (167.33)
Proceeds from Long Term Borrowings 200.43 217.15
Repayment of Short Term Borrowings (Net) 6.76 (137.86)
Interest paid (88.41) (92.32)
Dividend Paid (71.58) (9.33)
Corporate Dividend Tax (10.04) (1.33)
Net Cash used in Financing Activities (38.84) (191.02)
Net Increase in Cash and Cash Equivalents (A + B + C) 27.99 3.37
Cash and Cash Equivalents at the Beginning of the Year 61.60 56.26
Cash and Cash Equivalents transferred from NCCL as on 01.10.05 — 1.97
Cash and Cash Equivalents at the End of the year 89.59 61.60
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. Previous year figure regrouped/ recasted wherever necessary.
Chairman
G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
66
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 124.49 124.40

124,485,879 Equity shares of Rs. 10 each fully paid-up. (Previous Year 124,398,621)
Of the above,
(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 have
been allotted to shareholders of erstwhile Narmada Cement
Company Limited (NCCL) pursuant to Scheme of Amalgamation
without payment being received in cash. (Previous Year - NIL);
(c) 58,469,134 shares are held by Grasim Industries Limited
(Holding Company), {Previous Year - 58,464,717} and
7,477,178 shares are held by Samruddhi Swastik Trading &
Investment Limited (Subsidiary Company of Grasim Industries
Limited), {Previous Year - 5,077,603}).
124.49 124.40
SCHEDULE 1B
SHARE CAPITAL SUSPENSE
NIL Equity shares of Rs. 10 each to be issued as fully paid-up — 0.09
pursuant to Scheme of Amalgamation without payment
being received in cash. (Previous Year 87,258)
— 0.09
SCHEDULE 2
RESERVES & SURPLUS Rs. in Crores
Balance Additions Deduction/ Balance
as at during Adjustments as at
31st the during 31st
March, 06 year the year March, 07
Capital Reserve 25.02 — — 25.02
Cash Subsidy Reserve 0.10 — — 0.10
Debenture Redemption Reserve 138.88 30.92 — 169.80
General Reserve 569.21 100.00 — 669.21
Surplus as per Profit & Loss Account 180.57 782.28 (187.69) 775.16
913.78 913.20 (187.69) 1,639.29
Previous Year 942.73 @ 30.35 (59.30) 913.78
@ Previous year’s additions figure include Rs. 233.86 crores loss transferred from NCCL on account of merger.
SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures (See Note B 5a) 943.40 1,018.55
Loans from Banks:
Cash Credits / Working Capital Borrowings from Banks Secured by
Hypothecation of Stocks and Book Debts of the Company 20.91 14.15
Term Loans (See Note B 5b) 186.94 189.23
1,151.25 1,221.93
67
SCHEDULES
Rs. in Crores
Previous
Year
SCHEDULE 4
UNSECURED LOANS
Term Loan from Bank 173.88 —
Sales Tax Deferment Loan 253.50 229.90
427.38 229.90
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

01.04.06 Adjustments 31.03.07 01.04.06 year Adjustments 31.03.07 31.03.07 31.03.06
Freehold Land 69.53 3.72 — 73.25 — — — — 73.25 69.53

Leasehold Land 20.09 0.20 — 20.29 5.02 0.55 — 5.57 14.72 15.07
Buildings 468.56 15.62 — 484.18 138.05 14.51 — 152.56 331.62 330.51
Railway Sidings 159.66 — — 159.66 59.91 7.49 — 67.40 92.26 99.75
Plant & Machinery 3,719.35 176.08 22.95 3,872.48 1,749.58 188.21 16.43 1921.36 1,951.12 1,969.77
Furniture & Fixtures 77.85 8.54 3.27 83.12 44.42 5.99 3.03 47.38 35.74 33.43
Jetty 80.60 — — 80.60 65.41 1.75 — 67.16 13.44 15.19
Vehicles 9.74 2.67 1.29 11.12 5.82 1.07 0.90 5.99 5.13 3.92
Total 4,605.38 206.83 27.51 4,784.70 2,068.21 219.57 20.36 2,267.42 2,517.28 2,537.17
Previous Year 4,304.29 327.10 26.01 4,605.38 1,755.39 334.73 21.91 2,068.21
Add: Capital Work-in-progress 696.95 141.03
3,214.23 2,678.20
NOTES :
Rs. in Crores
A) Depreciation for the year 219.57
Add: Obsolescence 6.70
Less: Depreciation transferred to Pre-operative Expenses (0.02)
Depreciation as per Profit & Loss Account 226.25
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 include assets of Rs. 123.84 Crores (Previous Year Rs. 123.64 Crores) not owned by the
Company.
5. Fixed Assets amounting to 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.
68
SCHEDULES
Rs. in Crores
Previous
SCHEDULE 6 Year
INVESTMENTS - At Cost
LONG TERM
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.) Ltd.
(Previous Year 40,000,000) 23.03 23.03
24.24
24.24 24.24
CURRENT - Unquoted
Units of Debt Schemes of Mutual Funds:
Description No. of Face
Units Value Value
a) Liquid Scheme - Dividend Plan:
UTI Mutual Fund
(Previous year 2,672,257 units) — 10 — 4.66
LIC Mutual Fund
DSP Merill Lynch Mutual Fund
(Previous year 80,602 units) — 1,000 — 8.06
Birla Sunlife Mutual Fund
(Previous year 18,039,391 units) 24,001,347 10 24.00 18.07
Tata Mutual Fund
(Previous year 29,937 units) — 1,000 — 3.00
Prudential ICICI Mutual Fund
Kotak Mahindra Mutual Fund
b) Fixed Maturity Plan - Dividend Plan:
Birla Sunlife Mutual Fund
UTI Mutual Fund
Kotak Mahindra Mutual Fund
HSBC Mutual Fund
DSP Merill Lynch Mutual Fund
Standard Chartered Mutual Fund
69
SCHEDULES
CURRENT - Unquoted (Continued)....
Units of Debt Schemes of Mutual Funds:
Description No. of Face
Units Value Value
LIC Mutual Fund
Tata Mutual Fund
ING Vysya Mutual Fund
Lotus Mutual Fund
(Previous year NIL) 15,077,418 10 15.08 —
Deustche Mutual Fund
Principal Mutual Fund
Reliance Mutual Fund
ABN Amro Mutual Fund
c) Fixed Maturity Plan - Growth Plan:
Birla Mutual Fund
UTI Mutual Fund
459.21 148.15
483.45 172.39
Note: No. of Units of various Mutual Funds - Debt Schemes purchased and redeemed during the year are as follows:
(A) Liquid Schemes (Dividend Plan) - Birla Sunlife Mutual Fund - 1,000,960,734; Deutsche Mutual Fund -
201,116,354; DSP Merrill Lynch Mutual Fund - 1,217,157; Franklin Templeton Mutual Fund - 343,914;
HDFC Mutual Fund - 85,906,135; HSBC Mutual Fund - 83,729,198; ING Vysya Mutual Fund - 29,985,607;
JM Financial Mutual Fund - 4,991,764; Kotak Mahindra Mutual Fund - 149,450,855; LIC Mutual Fund -
517,555,470; Lotus India Mutual Fund - 27,119,744; Principal Mutual Fund - 70,795,044; Prudential ICICI
Mutual Fund - 716,398,802; Reliance Mutual Fund - 147,153,503; SBI Mutual Fund - 17,358,416; Standard
Chartered Mutual Fund - 13,118,088; TATA Mutual Fund - 1,670,087; UTI Mutual Fund - 165,438,643.
(B) Floating Rate Schemes (Dividend Plan) - ABN AMRO Mutual Fund - 9,994,207.
(C) Short Term Schemes (Dividend Plan) - Birla Sunlife Mutual Fund - 19,011,706; DSP Merrill Lynch
Mutual Fund - 14,727,464; Franklin Templeton Mutual Fund - 391,748; Principal Mutual Fund - 9,150,428;
Prudential ICICI Mutual Fund - 27,041,875.
(D) Dynamic Bond Fund Schemes (Dividend Plan) - Kotak Mahindra Mutual Fund - 55,407,667.
(E) Fixed Maturity Plans (Dividend Plan) - ABN AMRO Mutual Fund - 80,000,000; Birla Sunlife Mutual
Fund - 32,942,168; Deutsche Mutual Fund - 20,000,000; Kotak Mahindra Mutual Fund - 40,000,000; LIC
Mutual Fund - 40,000,000; Principal Mutual Fund - 15,000,000; Prudential ICICI Mutual Fund - 20,000,000;
Reliance Mutual Fund - 115,000,000; SBI Mutual Fund - 35,000,000; Standard Chartered Mutual Fund -
30,000,000; UTI Mutual Fund - 60,000,000.
70
SCHEDULES
Rs. in Crores
Previous
SCHEDULE 7 Year
INVENTORIES
Stores & Spare parts, Packing Material, Fuels and Scrap 275.10 201.02
Raw Materials 23.43 12.74
Work-in-progress 75.60 105.97
Finished Goods 59.45 59.84
433.58 379.57
SCHEDULE 8
SUNDRY DEBTORS
Exceeding six months:
Good and Secured 5.65 8.87
Good and Unsecured 3.15 1.69
Doubtful and Unsecured — 1.56
8.80 12.12
Less: Provision for Doubtful Debts — 1.56
8.80 10.56
Others:
174.70 161.99
183.50 172.55
SCHEDULE 9
CASH AND BANK BALANCES
Cash Balance on Hand 0.18 0.11
Bank Balance with Scheduled Banks:
In Current Accounts 89.41 61.39
In Fixed Deposits Accounts (Rs. 23,085) — 0.10
89.59 61.60
SCHEDULE 10
LOANS & ADVANCES
Secured & Considered Good
- Loan against mortgage of House Property 1.57 2.23
Unsecured
Considered Good:
Loans and Advances receivable from Subsidiary Company 0.13 0.34
Deposits and Balances with Government and other Authorities
(including accrued interest) 69.04 31.40
Advances recoverable in cash or in kind or for value to be received 168.35 124.83
Advance Tax (Net of Provision) 14.41 —
Considered Doubtful:
Advances recoverable in cash or in kind from
- Others 0.22 0.22
252.15 156.79
Less: Provision for doubtful loans and advances 0.22 0.22
251.93 156.57
253.50 158.80
71
SCHEDULES
Rs. in Crores
Previous
SCHEDULE 11 Year
CURRENT LIABILITIES
Sundry Creditors
Micro, Small and Medium Enterprises 0.47 0.78
(To the extent identified with available information)
Parent Companies & Fellow Subsidiaries 0.09 4.09
Others 463.43 313.26
463.99 318.13
Security and Other Deposits 112.99 78.52
Advances from Customers 53.93 42.38
Investor Education and Protection Fund, Amount not due
Unpaid Dividend 0.39 0.21
Other Liabilities 73.37 43.16
Interest accrued but not due on loans 32.04 34.47
736.71 516.87
SCHEDULE 12
PROVISIONS
Provision for Retirement Benefits 16.83 12.11
Provision for Tax (Net of Advance Tax) — 2.22
Corporate Dividend Tax — 3.06
18.47 39.18
SCHEDULE 13
INTEREST & DIVIDEND INCOME
Interest (Gross) on others 3.15 1.28
(Tax Deducted at Source Rs. 0.47 Crore, Previous Year Rs. 0.11 Crore)
Dividend from Current Investments 23.12 2.22
Dividend from a Subsidiary 3.55 3.49
29.82 6.99
SCHEDULE 14
OTHER INCOME
Lease Rent 1.28 3.93
Insurance Claim 0.36 0.19
Profit on Sale of Fixed Assets (Net) — 0.21
Profit on Sale of Current Investments (Net) 0.26 0.08
Exchange Rate Difference (Net) 3.19 1.00
Miscellaneous Income / Receipts 26.55 24.60
31.64 30.01
SCHEDULE 15
INCREASE / (DECREASE) IN STOCKS
Closing Stock
135.05 165.81
Opening stock
Add: Stock transferred from NCCL as on 1.10.05 — 21.13
165.81 130.07
Add: Increase / (Decrease) in Excise Duty on Stocks (1.78) 3.38
Increase / (Decrease) in Stocks (32.54) 39.12
72
SCHEDULES
Rs. in Crores
Previous
SCHEDULE 16 Year
RAW MATERIALS CONSUMED
Opening Stock 12.74 9.36
Add: Stock transferred from NCCL as on 1.10.05 — 1.57
Purchase and Incidental Expenses 403.68 285.92
416.42 296.85
Less: Closing Stock 23.43 12.74
392.99 284.11
SCHEDULE 17
MANUFACTURING EXPENSES
Consumption of Stores, Spare Parts, Components and Packing Materials 295.88 223.90
Power & Fuel Consumed 1,138.32 910.11
Hire Charges of Plant & Machinery and others 5.78 4.73
Repairs to Plant & Machinery 56.22 47.70
Repairs to Buildings 5.82 3.54
Repairs to Others 16.56 13.31
1,518.58 1,203.29
SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 87.16 69.26
Contribution to and Provisions for Provident and Other Funds 13.53 9.40
Welfare Expenses 16.53 13.60
117.22 92.26
SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission paid to Distributors and Selling Agents 11.57 7.94
Cash Discount 37.35 26.73
Freight, Handling and Other Expenses 1,013.86 763.08
Advertisements & Sales Promotions 74.88 46.24
Insurance 11.17 8.65
Rent (including Lease Rent) 9.67 8.79
Rates and Taxes 16.03 12.33
Stationery, Printing, Communication Expenses 8.68 7.76
Travelling and Conveyance 19.09 18.28
Legal and Professional Charges 15.51 17.97
Bad Debts and Advances Written Off 0.76 0.17
Directors’ Fees 0.18 0.11
Power (other than related to Manufacturing Activity) 1.53 1.18
Loss on Sale of Fixed Assets (Net) 0.05 —
Miscellaneous Expenses 28.93 20.10
1,249.26 939.33
SCHEDULE 20
INTEREST
On Debentures and Fixed Loans 79.18 83.53
On Other Loans 7.65 6.11
86.83 89.64
73
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).
4. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rates prevailing on the dates of the transactions /
converted at contracted rate. Foreign currency assets and liabilities covered by forward contracts are stated
at the forward contract rates while those not covered are restated at year end rate. Premium in respect of
forward contracts is recognised over the life of contracts. Exchange differences relating to fixed assets
acquired from a country outside India are adjusted to the cost of the asset. Exchange differences in case of
borrowed funds and liabilities in foreign currency for the acquisition of fixed assets from a country outside
India are adjusted to the cost of fixed assets. Any other exchange difference is dealt with in the Profit and
Loss Account.
5. Financial Derivatives:
The Company uses derivative financial instruments such as foreign exchange forward / option contract,
currency swap and interest swap to hedge its risk associated with foreign currency fluctuations and interest
rate. These are accounted on the date of settlement and realised gain / loss in respect of settled contracts are
recognised in the P&L accounts along with underlying transactions, except forward exchange contracts.
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 lower of cost and net realisable value except waste / scrap which is valued at net
realisable value. The cost is computed on weighted average basis.
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 stocks 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 Profit & Loss Account.
b) Lease transactions entered into on or after April 1, 2001:
i) Assets acquired under leases where the Company has substantially all the risks and rewards of
ownership are classified as finance leases. Such assets are capitalised at the inception of the lease
74
SCHEDULES
SCHEDULE 21 (Contd.)
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 &
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 policy on Depreciation & Amortisation)
10. Depreciation & Amortisation:
Depreciation is charged in the Accounts on the following basis:
i) Depreciation on original cost is provided on straight-line basis at the rates prescribed in Schedule XIV
to the Companies Act, 1956 except in following :
a) Motor Cars at 14.14 % per annum except for Motor Car given to employees.
b) Depreciable amount of the Motor Car given to employees as per the Company’s Scheme is
depreciated over the Scheme period.
c) Personal Computers & Laptops given to employees as per Company Scheme at 31 % per annum.
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.
v) Fly Ash handling system installed outside the plant are amortised over the period of the agreement or
over a period of five years wherever no such agreement.
vi) 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.
vii) Depreciation on additions / deductions is calculated pro-rata from / to the month of additions /
deductions.
11. Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of impairment
based on the internal and external factors.
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable amount. An impairment
loss, if any, is charged to Profit & 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 assets no longer exists or has decreased.
12. Retirement Benefits:
Provisions for / contributions to retirement benefits schemes are made as follows:
a) Provident fund on actual liability basis.
b) Superannuation / Pension schemes on the basis of actual liability / actuarial valuation done at the year
end. Superannuation is funded with an approved fund.
c) Gratuity based on actuarial valuation done at the year end. Gratuity is funded with an approved fund.
d) Leave encashment benefit on actuarial valuation basis done at the year end.
e) Post retirement medical benefit on actuarial valuation basis done at the year end.
75
SCHEDULES
13. Borrowing Costs:
Borrowing cost that are attributable to the acquisition, construction or production of a qualifying asset are
capitalised as part of 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 & 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 as per the Income Tax Act, 1961. Deferred Tax resulting from
“timing difference” between book and taxable profit for the year is accounted for using the tax rates and
laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is
recognised and carried forward only to the extent that there is a reasonable certainty except for carried
forward losses and unabsorbed depreciation which is recognised on virtual certainty that the assets will be
realised in future.
15. Sales:
a) Sales are accounted on despatch of products and sales value includes excise duty.
b) Export sales are accounted on the basis of dates of bill of lading.
16. Mines Reclamation Expenditure:
The Company provides for the expenditure to reclaim the quarries used for mines. The total estimate of
reclamation 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 in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
B. Notes on Accounts:
1. Merger of Narmada Cement Company Limited (NCCL)
In view of the amalgamation of NCCL with the Company with effect from October 1, 2005, the figures of
the current year are not comparable with those of the previous year.
Rs. in Crores
Previous
Year
2. Contingent Liabilities not provided for in respect of:
Claims not acknowledged as debts in respect of matters in appeals:
(a) Sales-tax liability 80.51 50.92
(b) Excise duty 35.75 27.10
(c) Royalty on Limestone / Marl 43.48 29.68
(d) Customs 0.19 30.12
(e) Others 33.53 15.63
3. Estimated amount of contracts remaining to be executed on capital account and not provided (net of
advances) Rs. 1749.10 crores (Previous year Rs. 531.97 crores).
76
SCHEDULES
4. (i) Derivative Instruments outstanding
Forward exchange contracts, currency swaps and interest rate swaps are used to hedge its risk associated
with foreign currency fluctuations & interest rate. The following are the outstanding forward exchange
contracts and derivative transactions entered into by the Company as on March 31, 2007:
Particulars Currency Amount Nature Cross Currency
A. Forward Contracts USD 7 Million Capital Imports Rupees
Euro 5.7 Million Capital Imports USD
B. Options (Derivatives) USD 40 Million ECB Loan Rupees
Euro 2 Million Capital Imports USD
Purpose: To hedge net foreign exchange exposure in respect of highly probable forex exchange transaction.
(ii) Un-hedged Foreign Currency exposure
Foreign currency exposures those are not hedged by a derivative instrument or otherwise: NIL.
5a) Secured Non-Convertible Debentures Rs. in Crores
Previous
Year
i) Fixed Rate Non-Convertible Debentures (NCDs)
1. 12.00% NCDs (Redeemable at par on December 22, 2006) — 50.00
2. 12.60% NCDs (Redeemable at par on September 17, 2006) — 26.00
3. 8.25% NCDs (Redeemable at par on September 2, 2012) 65.00 65.00
4. 8.40% NCDs (Redeemable at par on July 22, 2007) 45.00 45.00
5. 8.30% NCDs (Redeemable at par on September 2, 2012) 25.00 25.00
6. 8.09% NCDs (Redeemable at par on July 25, 2007) 40.00 40.00
7. 6.00 % NCDs (Redeemable at par on March 12, 2009) 225.00 225.00
8. Step up interest NCDs (Redeemable at par on September 16, 2012) 25.00 25.00
9. 6.65% NCDs (Redeemable at par on April 30, 2013) 5.00 5.00
10. 5.78 % NCDs (Redeemable at par on May 11, 2009) 150.00 150.00
11. 6.25% NCDs (Redeemable at par on June 25, 2009) 150.00 150.00
12. 6.70% NCDs (Redeemable at par on June 16, 2008) 50.00 50.00
ii) Floating Rate Debentures
1. MIBOR Linked NCDs (Redeemable at par on August 1, 2007) 100.00 100.00
2. 1 year GoI Security Linked NCDs (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. 13.40 crores, previous year Rs. 12.55 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 live for reissuance as at March 31, 2007.
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. 186.94 crores (previous year Rs. 189.23 crores) are secured by a first mortgage and
charged with 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.
6. Loans & Advances include Rs. 3.64 crores deposited as escrow with Standard Chartered Bank for purchase
of 36,40,000 Equity Shares of M/s K.V.K. Bio Energy Private Limited (KVK) from M/s Maruti Finance
77
SCHEDULES
Private Limited, the promoters of KVK. The transaction is conditional upon approval from Chattisgarh
State Electricity Board for wheeling power to the Company.
7. Sundry creditors include overdue amounts (unclaimed) of Rs. 0.74 Crore (Previous year Rs. 0.06 crore
payable to small scale and ancillary industrial units (SSI)) (including interest of Rs. 36,826, (Previous Year
Rs. 77,804 payable to SSI)) payable to Micro, Small & Medium Enterprises. Total outstanding dues of
Micro, Small & Medium Enterprises have been determined to the extent such parties have been identified
on the basis of information available with the Company.
List of Micro, Small & Medium Enterprises to whom the Company owes money for more than 45 days as
at March 31, 2007:
1 Associated Engineers 4 Masturlal Pvt. Limited
2 Jayshree Electron Pvt. Limited 5 Peekay Industries
3 Shrenik & Company
8. Disclosure as per clause 32 of the listing agreement – loans in the nature of Inter Corporate Deposits (ICD)
and trade credit given to subsidiaries :
Name of Subsidiary Company Amount Outstanding Maximum Balance
Outstanding during the year
Rs. in Crores Rs. in Crores
UltraTech Ceylinco Pvt. Limited 18.92 27.86
Dakshin Cements Limited 0.13 0.13
9. Auditors remuneration (excluding service tax) and expenses charged to the accounts:
Rs. in Crores
a) Statutory Auditors: 2006-07 2005-06
Audit fees 0.24 0.24
Tax audit fees 0.03 0.03
Fees for other services 0.14 0.14
Expenses reimbursed 0.02 0.02
b) Branch Auditors:
Audit fees 0.04 —
Expenses reimbursed (Rs. 4,871, previous year Nil) — —
c) Cost Auditors:
Expenses reimbursed (Rs. 7,495 previous year Rs. 12,555) — —
Rs. in Crores
10. Managing Director’s remuneration: 2006-07 2005-06
Salary 2.97 1.56
Contribution to Provident Fund & Other Funds* 0.26 0.15
Perquisites 0.13 0.13
* Excluding Contribution to Gratuity Fund and provision for leave encashment as separate figures cannot
be quantified.
11. Segment Reporting :
The Company has mainly one business segment ‘cement’ as its primary segment. The Company’s operations
are solely situated in India.
Rs. in Crores
Revenue 2006-07 2005-06
Sales:
Domestic 4,242.08 2809.20
Export 668.75 490.25
Total 4,910.83 3,299.45
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SCHEDULES
12. 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) Fellow Subsidiary
Harish Cement Limited (HCL) Fellow Subsidiary
Narmada Cement Company Ltd. (NCCL) Subsidiary (upto 30.09.2005)
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
b) Disclosure of related party transactions: Rs. in Crores
Sl. Nature of Holding Fellow Total
No. Transaction Company Subsidiaries Subsidiaries KMP
Grasim NCCL UCPL SDCCL SSITL
1 Sale of Goods 265.07 — 139.91 0.33 — — 405.31
(206.39) — (95.80) — — — (302.19)
2 Purchase of Goods 191.69 — — 2.41 — — 194.10
(170.31) (88.87) — — — — (259.18)
3 Purchase / Lease / 0.21 — — — — — 0.21
Rent of Fixed Assets — — — — — — —
4 Transfer of — — — — — — —
Fixed Assets (0.13) — — — — — (0.13)
5 Rendering of — — — — — — —
Services (0.04) — — — — — (0.04)
6 Receiving of 0.08 — — — 0.12 3.36 3.56
Services (13.66) — — — (0.12) (1.84) (15.62)
7 Interest & other
income received / — — 3.55 0.04 — — 3.59
receivable — — (3.49) — — — (3.49)
Outstanding Balance as on March 31, 2007 Rs. in Crores
Sl. Nature of Holding Fellow Total
No. Transaction Company Subsidiaries Subsidiaries KMP
Grasim DCL UCPL SDCCL SSITL
Loans & Advances — 0.13 — Rs. 1276 0.09 0.50 0.72
— (0.11) (0.23) (0.00) (0.09) (0.50) (0.93)
Debtors 0.27 — 18.92 Rs. 6305 — — 19.19
(0.43) — (18.26) — — — (18.69)
Creditors 0.34 — — — — — 0.34
(0.45) — — — — — (0.45)
Other Liabilities 0.02 — — — — — 0.02
(4.08) — — — — — (4.08)
Figures in brackets are pertaining to previous year.
79
SCHEDULES
13. 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, 2007 are as follows:
Rs. in Crores
Minimum Lease Payments Payable 2006-07 2005-06
i. not later than 1 year 0.28 0.40
ii. later than 1 year and not later than 5 years 0.12 0.50
iii. later than 5 years — —
Total Minimum Lease Payable 0.40 0.90
(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. 0.36 crore (Previous Year Rs. 0.79 crore).
14. Deferred Tax Assets and Liabilities as on March 31, 2007 are as under: Rs. in Crores
Particulars Deferred Tax Deferred Tax
(assets)/liabilities Current Year (assets)/liabilities
as at 01.04.2006 Charge/(Credit) as at 31.03.2007
Deferred Tax Assets:-
Provision allowed under tax on payment basis (9.43) (2.53) (11.96)
(9.43) (2.53) (11.96)
Deferred Tax Liabilities:-
Accumulated Depreciation 578.72 (14.25) 564.47
Miscellaneous expenditure — — —
(to the extent not written-off or adjusted)
Payments allowed under tax not expensed
in books 7.67 0.08 7.75
586.39 (14.17) 572.22
Net Deferred Tax Liability 576.96 (16.70) 560.26
15. The following expenses are included in the different heads of expenses in the Profit & Loss Accounts :
Rs. in Crores
Particulars 2006-07 2005-06
Raw Power Total Raw Power Total
Materials & Fuel Materials & Fuel
Consumed Consumed Consumed Consumed
Stores & Spares Consumed 40.94 19.62 60.56 36.54 16.28 52.82
Royalty & Cess 84.04 — 84.04 76.46 — 76.46
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SCHEDULES
16. Capital work-in-progress includes:
Rs. in Crores
2006-07 2005-06
Pre-operative expenses pending allocation:
Stores & Spares Consumed 0.33 —
Power & Fuel Consumed 0.63 —
Salary, wages, bonus, exgratia and Provisions 1.05 —
Insurance 0.15 —
Depreciation 0.02 —
Interest Capitalised 0.80 —
Misc. expenses 3.15 0.51
Total Pre-operative expenses 6.13 0.51
Add: B/f from Previous Year 0.51 —
Sub total 6.64 0.51
17. In accordance with the requirement of Accounting Standard -29 “Provisions, Contingent Liabilities and
Contingent Asset” issued by Institute of Chartered Accountants of India, the Company, during the year,
recognised Rs. 1.64 crores towards cost of reclamation of mining area.
18. All the amounts in rupees have been rounded off to crores with lacs in decimals as approved under Section
211 (1) of the Companies Act, 1956. Figures of Rs. 50,000 or less have been shown at actuals in brackets.
19. 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.
20. Previous year’s figures have been regrouped and rearranged wherever necessary to conform to this year’s
classification.
SCHEDULE 22
ADDITIONAL INFORMATION UNDER PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956
1. CAPACITIES & PRODUCTION:
Product Unit Installed capacity* Actual production**
2006-07 2005-06 2006-07 2005-06
Cement (Lakh tonnes) 170.00 170.00 146.35 133.33
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:
2006-07 2005-06
Product Unit Quantity Value Quantity Value
Cement Lakh tonnes 151.69 4,459.37 142.35 3,091.33
Clinker Lakh tonnes 25.00 408.79 13.18 207.94
Others — 42.67 — 0.18
Total 4,910.83 3,299.45
81
SCHEDULES
3. INVENTORY:
As at 31.03.2007 As at 31.03.2006
Cement Lakh tonnes 2.65 59.45 3.14 59.84
4. RAW MATERIALS, STORES, SPARE PARTS:
a) Raw Materials Consumed:
2006-07 2005-06
Limestone* Lakh tonnes 201.77 170.61 183.09 145.26
Slag Lakh tonnes 2.55 9.34 2.50 7.85
Gypsum Lakh tonnes 6.19 76.77 5.12 58.53
Fly Ash Lakh tonnes 17.62 51.11 12.70 29.30
Iron ore Lakh tonnes 4.31 47.73 2.53 19.50
Others 37.43 23.67
Total* 392.99 284.11
* Including Royalty & Cess on limestone and other related overheads.
b) Purchase of Finished Goods:
2006-07 2005-06
Class of goods Unit Quantity Value Quantity Value
Cement Lakh tonnes 5.58 182.38 9.54 232.19
Clinker Lakh tonnes — — 2.36 33.02
Others 0.05 0.11
Total 182.43 265.32
c) Value of Imports (on CIF basis): Rs. in Crores
2006-07 2005-06
Fuel, stores and spares 363.03 229.50
Capital goods 140.12 13.61
d) Value of imported and indigenous raw materials, spare parts and stores consumed:
2006-07 2005-06
Value % Value %
Raw materials
Imported 9.57 2.4 0.69 0.2
Indigenous 383.42 97.6 283.42 99.8
Total 392.99 100.0 284.11 100.0
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SCHEDULES
2006-07 2005-06
Value % Value %
Stores & spares
Imported 29.06 8.2 29.19 10.5
Indigenous 327.39 91.8 247.53 89.5
Total 356.45 100.0 276.72 100.0
5. EXPENDITURE IN FOREIGN CURRENCY:

Rs. in Crores
2006-07 2005-06
Freight / Despatch / Demurrage 67.68 55.81
Advertising — 0.01
Service Fees 2.93 0.77
Interest 6.04 3.70
Other Matters 0.46 1.50
6. EARNING IN FOREIGN EXCHANGE:
Rs. in Crores
2006-07 2005-06
Export of goods {Including Rs. 639.73 Crores
(Rs. 460.66 Crores) on FOB basis} 668.75 490.25
Professional fees 1.01 2.06
Other receipts 3.74 10.47
7. DIVIDEND REMITTED IN FOREIGN CURRENCY TO NON-RESIDENT SHAREHOLDERS:
2006-07 2005-06
No. of Shares Gross Amount No. of Shares Gross Amount
Shareholders Held of Dividends Shareholders Held of Dividends
Final Dividend
on Equity1 3,781 11,142,104 Rs. 1.95 Crores 3,669 9,576,564 Rs. 0.72 Crore
Interim Dividend
on Equity2 3,677 12,780,845 Rs. 5.11 Crores Nil Nil Nil
1. Final Dividend remitted in the year 2006-07 is pertaining to 2005-06 and dividend remitted in 2005-06
is pertaining to 2004-05, respectively.
2. Interim Dividend remitted to Non-Resident Shareholders is pertaining to 2006-07.
Signatures to Schedules ‘1’ to ‘22’
KUMAR MANGALAM BIRLA
Chairman
S. MISRA RAJASHREE BIRLA

Managing Director R. C. BHARGAVA
G. M. DAVE
N. J. JHAVERI
K. C. BIRLA S. MISRA
Executive President & CFO V. T. MOORTHY
J. P. NAYAK
S. RAJGOPAL
83
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 7
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 and Deployment of Funds (Amount in Rs. Thousands)

Total Liabilities Total Assets
4 6 5 7 8 4 6 9 4 6 5 7 8 4 6 9
Source of Funds Paid-Up-Capital Reserve & Surplus
1 2 4 4 8 5 9 1 6 3 9 2 9 0 3
Secured Loans Unsecured Loans
1 1 5 1 2 5 3 9 4 2 7 3 7 9 9
Application of Funds Net Fixed Assets Investments
3 2 1 4 2 2 3 3 4 8 3 4 5 1 5
Net Current Assets Miscellaneous Expenditure
2 0 4 9 9 9 2 N I L
IV Performance of Company (Amount in Rs. Thousands)

Turnover Total Expenditure
5 4 8 4 3 5 2 0 4 3 1 8 1 6 7 1
+/- Profit / (Loss) Before Tax +/- Profit/(Loss) After Tax
+ 1 1 6 6 1 8 4 9 + 7 8 2 2 7 9 3
Earning per share (Rs.) Dividend rate (%)
6 2 . 8 4 4 0
V Generic Names of Principal product of the Company

Item Code 2 5 2 3 2 9 . 0 1
Product Description P O R T L A N D C E M E N T

Chairman

G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
84
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) Ltd.
1 Financial year of the subsidiary company ended on March 31, 2007 March 31, 2007
2 Holding Company’s Interest

a) Number of Shares fully paid 50,000 40,000,000
b) Extent of holding 100% 80%
Rs. Crores Rs. Crores
3 Net aggregate amount of Profit / (Loss) of the
subsidiary, so far as they concern members of the
i) for the financial year of the subsidiary
a) Dealt with in the accounts of the — —
holding company
b) Not dealt with in the accounts of the — 7.00*
holding company
ii) for the previous financial years of
the subsidiary since it became the holding company’s subsidiary
a) Dealt with in the accounts of the — —
holding company
b) Not dealt with in the accounts of the — 12.32#
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 2.42
# converted Re. 1 = Sri Lankan Rupees 2.29

Chairman

G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
85
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
31st March, 2007, the Consolidated Profit and Loss Account and the Consolidated Cash
Flow Statement of the Group for 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. These 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. 52 crores as at 31st March, 2007, the total revenue of
Rs. 200.72 crores and cash flows amounting to Rs. 5.55 crores for the year then ended.
These financial statements and other financial information have been audited by other
auditors whose report has 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
31st March 2007;
86
(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.


Partner Partner
(Membership No. 31220) (Membership No. 30850)
Mumbai, April 21st, 2007
87
CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2007
Rs. in Crores
As at
Schedules March 31, 2006
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1A 124.49 124.40
Share Capital Suspense 1B — 0.09
Reserves and Surplus 2 1,643.72 916.88
1,768.21 1,041.37
Loan Funds
Secured Loans 3 1,151.25 1,222.09
Unsecured Loans 4 427.38 229.90
1,578.63 1,451.99
Minority Interest 5.30 4.75
Deferred Tax Liabilities (Net) 562.09 577.55
TOTAL 3,914.23 3,075.66
APPLICATION OF FUNDS
Fixed Assets
Gross Block 5 4,810.81 4,633.75
Less: Depreciation 2,274.16 2,074.46
Net Block 2,536.65 2,559.29
Capital Work-in-Progress 697.19 141.17
3,233.84 2,700.46
Goodwill 9.10 10.45
Investments 6 459.21 148.15
Current Assets, Loans and Advances
Inventories 7 441.19 386.79
Sundry Debtors 8 173.89 162.05
Cash and Bank Balances 9 100.11 68.39
Loans and Advances 10 254.26 158.84
969.45 776.07
Less:
Current Liabilities & Provisions
Current Liabilities 11 738.80 518.75
Provisions 12 18.57 40.72
757.37 559.47
Net Current Assets 212.08 216.60
TOTAL 3,914.23 3,075.66
Accounting Policies and Notes on Accounts 21

Chairman
G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
88
CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2007
Rs. in Crores
Previous
Schedules Year
INCOME
Gross Sales 5,542.22 3,885.49
Less: Excise Duty 573.52 501.54
Net Sales 4,968.70 3,383.95
Interest & Dividend Income 13 27.01 3.71
Other Income 14 32.21 28.11
Increase / (Decrease) in Stocks 15 (30.38) 40.23
4,997.54 3,456.00
EXPENDITURE
Raw Materials Consumed 16 423.00 326.17
Manufacturing Expenses 17 1,527.57 1,283.55
Purchase of Finished Products 182.43 176.45
Payments to and Provisions for Employees 18 118.99 98.06
Selling, Distribution, Administration and
Other Expenses 19 1,254.72 965.16
Interest 20 86.83 90.07
Depreciation and Obsolescence 227.31 220.41
Amortisation of Goodwill on Consolidation 1.35 10.17
3,822.20 3,170.04
Profit Before Tax Expenses 1,175.34 285.96
Provision for Current Tax 399.42 59.78
Deferred Tax (15.35) (4.16)
Fringe Benefit Tax 4.61 3.64
Profit After Tax 786.66 226.70
Minority Interest 1.75 1.60
Profit After Minority Interest 784.91 225.10
Adjustment due to Merger — 101.56
Balance brought forward from Previous Year 199.59 (67.77)
Profit Available for Appropriation 984.50 258.89
Appropriations
Interim Dividend 49.79 —
Corporate Dividend Tax 6.98 3.06
Balance carried to Balance Sheet 796.81 199.59
984.50 258.89
Basic and Diluted Earnings Per Equity Share (in Rs.) 63.05 18.08
Face Value Per Equity Share (in Rs.) 10.00 10.00
Number of Equity Shares (in Nos.) 124,485,879 124,485,879
Accounting Policies and Notes on Accounts 21
Chairman
G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
89
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2007
Rs. in Crores
March 31, 2007 March 31, 2006
A Cash Flow from Operating Activities:
Profit Before Tax 1,175.34 285.96
Adjustments for:
Depreciation 227.31 220.41
Amortisation of Goodwill on Consolidation 1.35 10.17
Miscellaneous Expenditure written off — 0.02
Provision for Doubtful Debts and Advances / (Written back) — 1.79
Bad Debts Written-off 0.76 0.17
Provision for Retirement benefits 4.71 1.77
Interest & Dividend Income (27.01) (3.71)
Interest Expense 86.83 90.07
Unrealised Foreign Exchange (Gain) / Loss (2.29) 0.79
(Profit) / Loss on Sale of Fixed Assets — (0.21)
Profit on Sale of Investment (0.26) (0.08)
Operating Profit Before Working Capital Changes 1,468.38 607.15
Adjustments for:
(Increase) / decrease in Inventories (54.40) (53.31)
(Increase) / decrease in Sundry Debtors (12.60) 10.51
(Increase) / decrease in Loans and Advances (82.09) (10.09)
Increase / (decrease) in Trade Payables and other Liabilities 222.48 65.86
Cash Generated from Operations 1,541.77 620.12
Taxes paid (416.40) (52.90)
Fringe Benefit Tax Paid (4.61) (3.09)
Net Cash from Operating Activities (A) 1,120.76 564.13
B Cash Flow from Investing Activities:
Purchase of Fixed Assets (766.03) (221.58)
Sale of Fixed Assets 2.39 1.35
(Increase) / decrease in Current Investments (311.00) (148.00)
Profit on Sale of Investments 0.26 0.08
Interest and Dividend Received 26.95 3.56
Net Cash used in Investing Activities (B) (1,047.43) (364.59)
C Cash Flow from Financing Activities:
Repayment of Long Term Borrowings (76.00) (167.33)
Proceeds from Long Term Borrowings 200.43 217.15
Repayment of Short Term Borrowings 6.60 (136.60)
Interest Paid (88.41) (92.75)
Dividend Paid (72.37) (10.20)
Corporate Dividend Tax (10.04) (1.33)
Net Cash used in Financing Activities (C) (39.79) (191.06)
Net increase in Cash and Cash Equivalents (A + B + C) 33.54 8.48
Cash and Cash Equivalents at the Beginning of the Year 68.39 60.16
Effect of Exchange Rate on Consolidation of Foreign Subsidiary (1.82) (0.25)
Cash and Cash Equivalents at the End of the Year 100.11 68.39
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. Previous year’s figures regrouped / recasted wherever necessary.
Chairman
G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
90
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 130.00 130.0
Issued, Subscribed and Paid up 124.49 124.40

124,485,879 Equity shares of Rs. 10 each fully paid-up.
(Previous Year 124,398,621)
124.49 124.40
SCHEDULE 1B
SHARE CAPITAL SUSPENSE
NIL Equity shares of Rs. 10 each fully paid-up issued.(Previous Year 87,258) — 0.09
— 0.09
SCHEDULE 2
RESERVES & SURPLUS Rs. in Crores
Balance Additions Deduction/ Balance
as at during Adjustments as at
31st the during 31st
March, 06 year the year March, 07
Capital Reserve 25.02 — — 25.02
Cash Subsidy Reserve 0.10 — — 0.10
Debenture Redemption Reserve 138.88 30.92 — 169.80
General Reserve 553.49 100.00 — 653.49
Exchange Variation Reserve* (0.20) (1.30) — (1.50)
Surplus as per Profit & Loss Account 199.59 784.91 (187.69) 796.81
916.88 914.53 (187.69) 1,643.72
Previous Year 849.28 126.90 (59.30) 916.88
* Exchange Variation Reserve has been created for Exchange Variation loss in Opening Equity Share Capital
and Reserve & Surplus of UltraTech Ceylinco (Pvt.) Ltd.
SCHEDULE 3
SECURED LOANS
Non-Convertible Debentures 943.40 1018.55
Loans from Banks:
Cash Credits / Working Capital borrowings from Banks Secured by
Hypothecation of Stocks and Book Debts. 20.91 14.31
Term Loans 186.94 189.23
1,151.25 1,222.09
91
Rs. in Crores
Previous
SCHEDULE 4 Year
UNSECURED LOANS
Long term:
Term Loan from Bank 173.88 —
Sales Tax Deferment Loan 253.50 229.90
427.38 229.90
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
31.03.06 Adjustments 31.03.07 31.03.06 year Adjustments 31.03.07 31.03.07 31.03.06
Freehold Land 71.29 3.72 — 75.01 — — — — 75.01 71.29
Leasehold Land 20.02 0.20 0.15 20.07 5.41 0.59 0.03 5.97 14.10 14.61
Buildings 470.19 15.62 0.14 485.67 138.39 14.57 0.03 152.93 332.74 331.80
Railway Sidings 159.66 — — 159.66 59.91 7.49 — 67.40 92.26 99.75
Plant & Machinery 3,747.77 176.13 25.09 3,898.81 1,755.10 189.11 16.89 1,927.32 1,971.49 1,992.67
Furniture & Fixtures 78.27 8.60 3.31 83.56 44.69 6.03 3.05 47.67 35.89 33.58
Jetty 76.63 — — 76.63 65.08 1.75 — 66.83 9.80 11.55
Vehicles 9.92 2.81 1.33 11.40 5.88 1.09 0.93 6.04 5.36 4.04
4,633.75 207.08 30.02 4,810.81 2,074.46 220.63 20.93 2,274.16 2,536.65 2,559.29
Previous year 4,530.13 130.06 26.44 4,633.75 1,879.36 217.22 22.12 2,074.46
Add: Capital Work-in-Progress 697.19 141.17
3,233.84 2,700.46
Note: Rs. in Crores
Depreciation for the year 220.63

Add: Obsolescence 6.70
Less: Depreciation transferred to Pre-operative expense (0.02)
Depreciation as per Profit & Loss Account 227.31
Rs. in Crores
Previous
SCHEDULE 6 Year
INVESTMENTS - At Cost
LONG TERM
Government and Trust Securities -Unquoted — —
(Rs. 10,000, Previous year Rs.10,000) Pledged as Security Deposit
CURRENT - Unquoted
Investment in Debt Schemes of Various Mutual Funds 459.21 148.15
459.21 148.15
Note: No. of Units of Various Mutual Funds - Debt Schemes purchased and
redeemed during the year 3,857,976,775.
SCHEDULE 7
INVENTORIES
Stores & Spare parts, Packing Material, Fuels and Scrap 275.10 201.02
Raw Materials 23.43 12.74
Finished Goods (Includes transit stock of Rs. 2.61 Crores,
Previous year Rs. 4.38 Crores) 67.06 67.06
441.19 386.79
92
Rs. in Crores
Previous
SCHEDULE 8 Year
SUNDRY DEBTORS
Exceeding six months:
Doubtful and Unsecured 1.14 3.02
10.41 13.62
Less: Provision for Doubtful Debts 1.25 3.02
9.16 10.60
Others:
164.73 151.45
173.89 162.05
SCHEDULE 9
CASH AND BANK BALANCES
Cash Balance on Hand 0.48 0.20
Bank Balance with Scheduled Banks:
In Current Accounts 92.49 61.41
In Fixed Deposits Accounts 7.14 6.78
100.11 68.39
SCHEDULE 10
LOANS & ADVANCES
Secured & Considered Good
— Loan against mortgage of House Property 1.57 2.23
Unsecured
Considered Good:
Deposits and Balances with Governments and other Authorities
(including accrued interest ) 70.58 31.65
Advances recoverable in cash or in kind or for value to be received 168.78 124.96
Advance Tax (Net of Provision) 13.33 —
Considered Doubtful:
Advances recoverable in cash or in kind 0.22 0.22
252.91 156.83
Less: Provision for doubtful loans and advances 0.22 0.22
252.69 156.61
254.26 158.84
SCHEDULE 11
CURRENT LIABILITIES
Sundry Creditors 464.37 318.28
Security and Other Deposits 113.25 78.82
Advances from Customers 53.93 42.38
Investor Education and Protection Fund, Amount not due
Unpaid Dividend 0.39 0.21
Other Liabilities 74.82 44.59
Interest accrued but not due on loans 32.04 34.47
738.80 518.75
93
Rs. in Crores
Previous
Year
SCHEDULE 12
PROVISIONS
Retirement Benefits 16.93 12.22
Provision for Tax (Net of Advance Tax) — 3.65
Corporate Dividend Tax — 3.06
18.57 40.72
SCHEDULE 13
INTEREST & DIVIDEND INCOME
Interest (Gross) on others 3.89 1.49
(Tax Deducted at Source Rs. 0.47 Crore, Previous Year Rs. 0.11 Crore)
Dividend from Current Investments 23.12 2.22
27.01 3.71
SCHEDULE 14
OTHER INCOME
Lease Rent 1.28 3.93
Profit on Sale of Current Investments (Net) 0.26 0.08
Insurance Claim 0.36 0.47
Profit on Sale of Fixed Assets (Net) — 0.21
Exchange Rate Difference (Net) 3.19 1.23
Miscellaneous Income / Receipts 27.12 22.19
32.21 28.11
SCHEDULE 15
INCREASE / (DECREASE) IN STOCKS
Closing Stock
140.05 168.65
Opening stock
168.65 130.00
Add: Increase / (Decrease) in Excise Duty on Stocks (1.78) 1.58
Increase / (Decrease) in Stocks (30.38) 40.23
SCHEDULE 16
RAW MATERIALS CONSUMED
Opening Stock 12.74 13.04
Purchase and Incidental Expenses 433.69 325.87
446.43 338.91
Less: Closing Stock 23.43 12.74
423.00 326.17
94
Rs. in Crores
Previous
Year
SCHEDULE 17
MANUFACTURING EXPENSES
Consumption of Stores, Spare Parts and Components, Packing Materials 303.78 242.05
Power & Fuel Consumed 1,139.22 967.44
Hire Charges of Plant & Machinery and others 5.78 5.45
Repairs to Plant & Machinery 56.27 50.65
Repairs to Buildings 5.92 3.80
Repairs to Others 16.60 14.16
1,527.57 1,283.55
SCHEDULE 18
PAYMENTS TO AND PROVISIONS FOR EMPLOYEES
Salaries, Wages and Bonus 88.66 73.97
Contribution to and Provisions for Provident and Other Funds 13.70 9.82
Welfare Expenses 16.63 14.27
118.99 98.06
SCHEDULE 19
SELLING, DISTRIBUTION, ADMINISTRATION AND OTHER EXPENSES
Commission paid to Distributors and Selling Agents 11.60 8.27
Cash Discount 37.35 26.73
Freight, handling and other expenses 1,014.95 778.28
Advertisements & Sales Promotion 77.25 49.39
Insurance 11.21 9.14
Rent (including Lease Rent) 9.75 8.93
Rates and Taxes 16.14 12.67
Stationery, Printing, Communication Expenses 8.93 8.14
Travelling and Conveyance 19.52 18.89
Legal and Professional charges 15.62 18.55
Bad Debts and Advances Written Off 0.76 0.17
Provision for Doubtful Debts and Advances — 1.79
Directors’ Fees 0.18 0.11
Power (other than related to Manufacturing Activity) 1.87 1.18
Loss on Sale of Fixed Assets (Net) 0.05 —
Miscellaneous Expenses 29.54 22.92
1,254.72 965.16
SCHEDULE 20
INTEREST
On Debentures and Fixed Loans 79.18 83.53
On Others Loans 7.65 6.54
86.83 90.07
95
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).
4. Foreign Currency Transactions:
Foreign currency transactions are accounted for at the rates prevailing on the dates of the
transactions / converted at contracted rate. Foreign currency assets and liabilities covered by forward
contracts are stated at the forward contract rates while those not covered are restated at year end rate.
Premium in respect of forward contracts is recognised over the life of contracts. Exchange differences
relating to fixed assets acquired from a country outside India are adjusted to the cost of the asset.
Exchange differences in case of borrowed funds and liabilities in foreign currency for the acquisition of
fixed assets from a country outside India are adjusted to the cost of fixed assets. Any other exchange
difference is dealt with in the Profit and Loss Account.
5. Financial Derivatives:
The Company uses derivative financial instruments such as foreign exchange forward / option contract,
currency swap and interest swap to hedge its risk associated with foreign currency fluctuations and
interest rate. These are accounted on the date of settlement and realised gain / loss in respect of settled
contracts are recognised in the P&L accounts along with underlying transactions, except forward exchange
contracts.
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 lower of cost and net realisable value except waste / scrap which is valued at
net realisable value. The cost is computed on weighted average basis.
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 stocks are duly
provided for.
96
9. Leases:
a) In respect of lease transactions entered into prior to April 1, 2001, lease rentals of assets acquired
are charged to Profit & Loss Account.
b) Lease transactions entered into on or after April 1, 2001:
i) Assets acquired under leases where the Company has substantially all the risks and rewards of
ownership are classified as finance leases. Such assets are capitalised at the inception of the
lease at the lower of the fair value or the present value of minimum lease payments and a
liability is created for an equivalent amount. Each lease rental paid is allocated between the
liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding
liability for each period.
ii) Assets acquired under leases where a significant portion of the risks and rewards of ownership
are retained by the lessor are classified as operating leases. Lease rentals are charged to the
Profit & 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 policy on Depreciation & Amortisation)
10. Depreciation & Amortisation:
Depreciation is charged in the Accounts on the following basis:
i) Depreciation on original cost is provided on straight-line basis at the rates prescribed in Schedule
XIV to the Companies Act, 1956 except in following:
a) Motor Cars at 14.14 % per annum except for Motor Cars given to employees.
b) Depreciable amount of the Motor Cars given to employees as per the Company's Scheme is
depreciated over the Scheme period.
c) Personal Computers & Laptops given to employees as per Company Scheme at 31 % per
annum.
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.
v) Fly Ash handling system installed outside the plant are amortised over the period of the agreement
or over a period of five years wherever no such agreement.
vi) 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.
vii) Depreciation on additions / deductions is calculated pro-rata from / to the month of
additions / deductions.
11. Impairment of Assets:
The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of
impairment based on the internal and external factors.
97
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable amount. An
impairment loss, if any, is charged to Profit & 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 assets no longer exists or has decreased.
12. Retirement Benefits:
Provisions for / contributions to retirement benefits schemes are made as follows:
a) Provident fund on actual liability basis.
b) Superannuation / Pension schemes on the basis of actual liability / actuarial valuation done at the
year end. Superannuation is funded with an approved fund.
c) Gratuity based on actuarial valuation done at the year end. Gratuity is funded with an approved
fund.
d) Leave encashment benefit on actuarial valuation basis done at the year end.
e) Post retirement medical benefit on actuarial valuation basis done at the year end.
13. Borrowing Costs:
Borrowing cost that are attributable to the acquisition, construction or production of a qualifying asset
are capitalised as part of 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 & 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 as per the Income Tax Act, 1961. Deferred Tax resulting
from "timing difference" between book and taxable profit for the year is accounted for using the tax rates
and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax
asset is recognised and carried forward only to the extent that there is a reasonable certainty except for
carried forward losses and unabsorbed depreciation which is recognised on virtual certainty that the
assets will be realised in future.
15. Sales:
a) Sales are accounted on despatch of products and sales value includes excise duty.
b) Export sales are accounted on the basis of dates of bill of lading.
16. Mines Reclamation Expenditure:
The Company provides for the expenditure to reclaim the quarries used for mines. The total estimate of
reclamation 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 in the notes. Contingent assets are neither
recognised nor disclosed in the financial statements.
98
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 31.03.2007, 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. Merger of Narmada Cement Company Limited:
In view of the amalgamation of NCCL with the Company with effect from October 1, 2005, the figures of the
current year are not comparable with those of the previous year.
3. Notes on Accounts of the financial statement of the Company and all the subsidiaries are set out in their
respective financial statement.
4. 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 first 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. 10.17 Crores) was amortised from goodwill.
5. Reserve shown in the consolidated balance sheet represents the Group's share in the respective reserves of the
Group Companies.
6. 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 80.51 50.92
(b) Excise duty 35.75 27.10
(c) Royalty on Limestone / Marl 43.48 29.68
(d) Customs 0.19 30.12
(e) Others 33.53 15.63
99
7. Estimated amount of contracts remaining to be executed on capital account and not provided (net of advances):
Rs. 1,749.10 Crores (Previous year Rs. 531.97 Crores).
8. Segment reporting:
The Group has mainly one business segment 'cement' as primary segment and its operations are solely
situated in India. The secondary segment is geographical, which is as under:
Rs. in Crores
Revenue 2006-07 2005-06
Net Sales:
In India 4,242.08 2,830.40
Outside India 726.62 553.55
Total 4,968.70 3,383.95
9. 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) Fellow Subsidiary
Harish Cement Ltd (HCL) 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
Sl. No. Nature of Transaction Grasim SSITL SDCCL KMP Total
1 Sale of Goods 265.07 — 0.33 — 265.40
(206.39) — — — (206.39)
2 Purchase of Goods 191.69 — 2.41 — 194.10
(170.31) — — — (170.31)
3 Purchase / Lease / Rent of Fixed Assets 0.21 — — — 0.21
— — — — —
4 Transfer of Fixed Assets — — — — —
(0.13) — — — (0.13)
5 Rendering of Services — — — — —
(0.04) — — — (0.04)
6 Receiving of Services 0.08 0.12 — 3.36 3.56
(13.66) (0.12) — (1.92) (15.70)
7 Interest & other income received / receivable — — 0.04 — 0.04
— — — — —
100
Rs. in Crores
Sl. No. Nature of Transaction Grasim SSITL SDCCL KMP Total
Outstanding Balance as on 31st March
1 Debtors 0.27 — Rs. 6305 — 0.27
(0.43) — — — (0.43)
2 Loans & Advances — 0.09 Rs. 1276 0.50 0.59
— (0.09) (0.00) (0.50) (0.59)
3 Creditors 0.34 — — — 0.34
(0.45) — — — (0.45)
4 Other Liabilities 0.02 — — — 0.02
(4.08) — — — (4.08)
Figures in brackets are pertaining to previous year.
10. 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, 2007 are as follows:
Rs. in Crores
2006-07 2005-06
Minimum Lease Payments Payable
i. not later than 1 year 0.28 0.40
ii. later than 1 year and not later than 5 years 0.12 0.50
iii. later than 5 years — —
Total Minimum Lease Payments 0.40 0.90
(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. 0.36 Crore (Previous year Rs. 0.83 Crore).
11. Deferred Tax Assets and Liabilities as on March 31, 2007 are as under:
Rs. in Crores
Particulars Deferred Tax Current Year Deferred Tax
(assets)/ Charge/ (assets)/
liabilities as at (Credit) liabilities as at
01.04.2006 31.03.2007
Deferred Tax Assets:-
Provision allowed under tax on payment basis (9.47) (2.49) (11.96)
Unabsorbed Losses (5.96) 1.84 (4.12)
(15.43) (0.65) (16.08)
Deferred Tax Liabilities:-
Accumulated Depreciation 585.31 (14.85) 570.46
Miscellaneous expenditure — — —
(to the extent not written-off or adjusted)
Payments allowed under tax not expensed in books 7.67 0.04 7.71
592.98 (14.81) 578.17
Net Deferred Tax Liability 577.55 (15.46) 562.09
101
12. Auditors' remuneration (excluding service tax) and expenses charged to the accounts:
Rs. in Crores
a) Statutory Auditors: 2006-07 2005-06
Tax audit fees 0.03 0.03
Certification fees 0.14 0.14
Expenses reimbursed 0.02 0.02
b) Branch Auditors :
Audit fees 0.04 —
Expenses reimbursed (Rs. 4,871, previous year Nil) — —
c) Cost Auditors:
Expenses reimbursed (Rs. 7,495 previous year Rs. 12,555) — —
13. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in
line with the Company's financial statements.
14. Previous year's figures have been regrouped and rearranged wherever necessary to confirm to this year's
classification.
Signatures to Schedules ‘1’ to ‘21’. Chairman

G. M. DAVE
N. J. JHAVERI
J. P. NAYAK
S. RAJGOPAL
102
Subsidiary Companies Reports and Accounts
DAKSHIN CEMENTS LIMITED
DIRECTOR’S REPORT AUDITORS’ REPORT
To The Members, There are no adverse comments, observation or

reservation in the Auditors’ Report on the Annual
Dakshin Cements Limited Accounts of the Company.
Your Directors have pleasure in presenting their The Notes to the Accounts referred to in the Auditors’
Fourteenth Annual Report of your Company Report are self explanatory and therefore do not call
together with Audited Accounts for the year ended for any further comments from the Directors.
31st March, 2007. PARTICULARS OF EMPLOYEES
FINANCIAL RESULTS Section 217(2A) of Companies Act, 1956 read with
the Companies (Particulars of Employees) Rules, 1975
During the year under review, your Company did not do not apply to your Company as none of its
carry on any business activities and accordingly no employees are covered under its provisions.
Profit and Loss Account has been prepared.
CONSERVATION OF ENERGY, TECHNOLOGY
CAPITAL EXPENDITURE ABSORPTION, FOREIGN EXCHANGE
EARNINGS & OUTGO
During the year under review, your Company did not
incur any capital expenditure. During the year under review, your Company did not
carry any commercial / business activity and
FIXED DEPOSITS accordingly particulars under conservation of energy,
technology absorption, foreign exchange earnings &
Your Company has not accepted any fixed deposit outgo have not been provided.
during the year ended 31st March, 2007.
AUDITORS
DIRECTORS’ RESPONSIBILITY STATEMENT
M/s G. P. Kapadia & Co., Chartered Accountants,
As required under Section 217 (2AA) of the Companies Mumbai the existing Auditors will retire at the ensuing
Act, 1956 your Directors confirm that: Annual General Meeting of your Company. They, being
eligible to be re-appointed, have expressed their
i) in the preparation of Annual Accounts, the willingness to be re-appointed as the Statutory Auditors
applicable accounting standards had been followed of your Company for the financial year 2007-08. A
along with proper explanation relating to material resolution seeking your approval for their
departures; re-appointment has been included in the Notice
convening the Annual General Meeting.
ii) the Directors had selected such accounting policies
ACKNOWLEDGEMENT
and made judgments and estimates that are
reasonable and prudent so as to give a true and The Board of Directors wish to place on record their
fair view of the state of affairs of the Company as appreciation for the support and co-operation extended
at 31st March, 2007; by UltraTech Cement Limited, the Auditors and the
Bankers of the Company.
iii) the Directors had taken proper and sufficient care
for the maintenance of adequate accounting records
in accordance with the provisions of the Companies For and on behalf of the Board of Directors
Act, 1956 for safeguarding the assets of the K. C. BIRLA
company and for preventing and detecting the fraud
and other irregularities; and }
O. P. PURANMALKA Directors
M. R. PRASANNA
iv) the Directors had prepared the annual accounts on Place: Mumbai
a going concern basis. Date: 16th April, 2007
104
AUDITOR’S REPORT (b) In our opinion, proper books of accounts as
required by law have been kept by the
We have audited the attached Balance Sheet of Company so far as appears from our
Dakshin Cements Limited as at 31st March, 2007. examination of those books;
No Profit and Loss Account has been prepared as the
Company has not carried out any activities. These (c) The Balance Sheet dealt with by this report is
financial statements are the responsibility of the in agreement with the books of account;
Company’s Management. Our responsibility is to
express an opinion on these financial statements based (d) In our opinion, the Balance Sheet dealt with
on our audit. by this report, complies with the accounting
standards referred to in Section 211(3c) of the
We conducted our audit in accordance with auditing Companies Act, 1956, to the extent applicable;
standards generally accepted in India. Those Standards
require that we plan and perform the audit to obtain (e) On the basis of written representations
reasonable assurance about whether the financial received from the directors as on 31st March,
statements are free of materials misstatement. An audit 2007, and taken on record by the Board of
includes examining on a test basis, evidence supporting Directors, we report that none of the directors
the amounts and disclosures in the financial statements. is disqualified as on 31st March, 2007 from
An audit also includes assessing the accounting being appointed as a director in terms of
principles used and significant estimates made by the Section 274(1)(g) of the Companies Act, 1956;
management, as well as evaluating the overall financial and
statement presentation. We believe that our audit
provides a reasonable basis of our opinion. (f) In our opinion and to the best of our
information and according to the explanations
In accordance with the provisions of Section 227 of given to us, the said Balance Sheet read
the Companies Act, 1956, we report that : together with the significant accounting
policies and other notes appearing in Schedule
1. As the Company has carried out no activities 5, gives the information required by the
during the year, the requirement by the Companies Companies Act, 1956, in the matter so required
(Auditor’s Report) Order, 2003 issued by the and give a true and fair view in conformity
Central Government of India in terms of Section with the accounting principles generally
227(4A) of the Companies Act, 1956, is not accepted in India, of the state of Company’s
applicable. affairs as at 31st March, 2007.
2. Further to our comments in paragraph 1 above, For G. P. KAPADIA & CO.

we report that: Chartered Accountants
(a) We have obtained all the information and ATUL B. DESAI
explanations, which to the best of our Partner
knowledge and belief were necessary for the (Membership No.30850)
purposes of our audit; Mumbai, April 16, 2007
105
Balance Sheet as at 31st March, 2007
As at As at
31st March, 2007 31st March, 2006
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 1,554,969 1,554,969 1,390,738 1,390,738
Current Assets, Loans and Advances 3 365,576 361,165

365,576 361,165
Less: Current Liabilities and Provisions 4 1,457,939 (1,092,363) 1,289,297 (928,132)
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
by the hand of
ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA M. R. PRASANNA

Partner Director Director Director
Membership No. 30850
Mumbai, April 16, 2007
106
Schedules forming part of the Balance Sheet Schedule - 5
As at As at NOTES ON ACCOUNTS
31st March 07 31st March 06 1) Significant Accounting Policies :
Schedule - 1 Rupees Rupees
SHARE CAPITAL The Company maintains its accounts on accrual basis following the historical
Authorised cost convention in accordance with generally accepted accounting principles
500,000 Equity shares of Rs 10 each 5,000,000 5,000,000 (“GAAP”) and in compliance with the accounting standards referred to in
Section 211 (3C) and other requirements of the Companies Act, 1956, to the
Issued and subscribed extent applicable.
50,000 Equity shares of Rs 10 each
2) As the Company has not yet started commercial operation, no Profit & Loss
fully paid (All the shares are held by
Account has been prepared. The statement showing the unallocated,
UltraTech Cement Limited,
pre- operative expenditure incurred up to 31st March 2007 is shown in
the holding company) 500,000 500,000
Schedule - 2.
3) The pre-operative expenditure as under pending allocation will be allocated
to appropriate fixed assets on commencement of the commercial production:
Schedule - 2 Incidental expenditure pending allocation / capitalisation
FIXED ASSETS As at As at
Gross block — — 31st March 07 31st March 06
Less : Depreciation — — Rupees Rupees
Net block — — Travelling and conveyance 134,629 134,629
Capital work in progress — — Subscription 1,000 1,000
Incidental Expenditure pending allocation Survey expenses 90,750 90,750
/capitalisation 1,554,969 1,390,738 Testing charges 8,000 8,000
Consultancy charges 2,500 2,500
1,554,969 1,390,738
Auditors’s remuneration 63,282 57,670
Printing & Stationery 3,764 3,764
Office expenses 2,745 2,745
Bank charges 325 325
Schedule - 3 Directors sitting fees 7,500 7,500
CURRENT ASSETS, LOANS AND ADVANCES Filing fees 33,770 33,770
Cash and Bank Balances Royalty/dead rent 915,811 757,192
Cash on Hand 241 241 Legal fees 262,000 262,000
Balance with Scheduled Bank Interest 7,008 7,008
on current account 200,305 200,305 Miscellaneous expenses 21,885 21,885
200,546 200,546 Total 1,554,969 1,390,738
Loans and Advances
Unsecured, considered good
Advances recoverable in cash or in kind 4) Contingent liabilities - Nil.
or for value to be received 165,030 160,619
5) Previous years’ figures have been regrouped wherever necessary.
Total 365,576 361,165
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 by the hand of
(The Holding Company) 1,264,870 1,101,840
Due to Others 171,187 171,187 ATUL B. DESAI K. C. BIRLA O. P. PURANMALKA M. R. PRASANNA
Other liabilities 21,882 16,270 Partner Director Director Director
Membership No 30850
Total 1,457,939 1,289,297
Mumbai , April 16, 2007
107
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 7
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 5 5 5 N I L
Net Current Assets Miscellaneous Expenditure
( 1 0 9 2 ) 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 16, 2007
108
UltraTech Ceylinco (Pvt) Ltd
DIRECTORS’ REPORT DIRECTORATE
The Directors of UltraTech Ceylinco (Pvt) Ltd have pleasure The names of the Directors of the Company as at date are
in presenting to the members their report for the year ended
given under Corporate Information.
31st March, 2007.
PRINCIPAL ACTIVITY Mr. D. Razdan resigned from the board of Directors with
effect from 30th June 2006 and Mr. O. P. Puranmalka was
The principal activity of the Company is carrying on business
appointed with effect from 1st July 2006.
of importers, exporters, distributors, warehousemen,
wholesalers, retailers and dealers of cement and to establish RETIREMENT BY ROTATION AND /OR OTHERWISE
storage terminals and other facilities for the bagging and
distribution of bulk cement. By virtue of provisions contained in the Articles of
MESSAGE FROM THE CEO Association of the Company, the Directors are not subject
to Retirement by Rotation.
The performance during the year of our JV was the best
ever since the inception. DIRECTOR’S INTERESTS IN CONTRACTS
The Company distributed 0.510 MMT of cement against
0.539 MMT during last period of 15 months. This has given The Directors of the Company have no direct and indirect
14 % growth as against market growth of 9% which has interest in any contract or proposed contract of the Company,
resulted in increase in market share to 12.3 %. except those specified in Note 20 to the financial statement,
which have been disclosed and declared at meetings of the
The sales and other income for the financial year under
Directors in accordance with Section 203 of the Companies
review were Rs. 4,794 M as against Rs. 4,354 M during the
Act No. 17 of 1982.
15 months previous period which has given us a growth of
25%. The profit after providing tax for the year was
AUDITORS
Rs. 221 M as against the profit of Rs. 243 M for 15 months
previous period. The Accounts for the year under review have been audited
The performance for the year was driven mainly by increase by Messrs KPMG Ford, Rhodes, Thornton & Company,
in the quantity sold, better price realization and continuous Chartered Accountants, who retire and being eligible offer
efforts in the cost reduction activities and better productivity. themselves for re-appointment for the year 2007/2008.
The Governments thrust on infrastructure development and
The Directors do recommend their re-appointment.
its efforts to invite FDI’s in infrastructure projects such as
power plants, road, flyovers, are expected to have a favorable
impact on the industry in 2007-08.
We have taken enormous efforts in the brand awareness
after changing our brand name in year 2005 and the coming
year, special steps will be taken for brand building exercises.
PROFIT & LOSS ACCOUNT BY ORDER OF THE BOARD
Year ended 15 months ended
31.03.2007 31.03.2006
SLR SLR
Turnover 4,777,959,022 4,349,045,969 Sgd. (Authorized Signatory)
Cost of Sales (4,345,202,370) (3,842,782,316)
Gross Profit 432,756,652 506,263,653
Other operating Income 16,307,571 4,894,446 INTERNATIONAL CONSULTANCY AND
Administrative expenses (50,087,336) (57,094,226) CORPORATE SERVICES (PVT) LTD
Distribution cost (70,016,265) (91,140,962)
Other operating expenses - (63,637,579) SECRETARIES FOR ULTRATECH CEYLINCO
(PVT) LTD
Profit from operations 328,960,622 299,285,332
Financing cost 7,452,548 31,700,606
Profit before taxation 336,413,170 330,985,938
Income tax expense (115,255,124) (88,195,671) 10th April 2007
Profit for the year 221,158,046 242,790,267
Earnings per share 4.42 3.88 Colombo
109
REPORT OF THE AUDITORS belief were necessary for the purposes of our audit. We
therefore believe that our audit provides a reasonable basis
TO THE MEMBERS OF ULTRATECH CEYLINCO for our opinion.
(PVT) LTD.
Opinion
We have audited the Balance Sheet of UltraTech Ceylinco
(Pvt) Ltd., as at 31st March, 2007 and the related Statements In our opinion, so far as appears from our examination, the
of Income, Changes in Equity and Cash Flow for the year Company maintained proper books of account for the year
then ended, together with the Accounting Policies and Notes ended at 31st March, 2007 and to the best of our information
thereon. and according to the explanations given to us, the said
Balance Sheet and related Statements of Income, Changes
Respective Responsibilities of Directors and Auditors in Equity and Cash Flow and the Accounting Policies and
Notes thereto, which are in agreement with the said books
The Directors are responsible for preparing and presenting and have been prepared and presented in accordance with
these financial statements in accordance with the Sri Lanka the Sri Lanka Accounting Standards, provide the information
Accounting Standards. Our responsibility is to express an required by the Companies Act No. 17 of 1982 and give a
opinion on these financial statements, based on our audit. true and fair view of the Company’s state of affairs as at
31st March, 2007, and of its profit and cash flows for the
Basis of Opinion
year then ended.
We conducted our audit in accordance with the Sri Lanka
Directors’ Interests in Contracts with the Company
Auditing Standards, which require that we plan and perform
the audit to obtain reasonable assurance about whether the According to the information made available to us, the
said financial statements are free of material misstatements. Directors of the Company were not directly or indirectly
An audit includes examining, on a test basis, evidence interested in any contracts with the Company during the
supporting the amounts and disclosures in the said financial year ended 31st March, 2007, other than those disclosed in
statements, assessing the accounting principles used and Note 20 to these financial statements.
significant estimates made by the Directors, evaluating the
overall presentation of the financial statements, and For KPMG FORD, RHODES, THORTON & CO
determining whether the said financial statements are
prepared and presented in accordance with the Sri Lanka CHARTERED ACCOUNTANTS
Accounting Standards. We have obtained all the information
and explanations which to the best of our knowledge and Colombo, 10th April, 2007
110
Balance Sheet as at 31st March, 2007
31.03.2007 31.03.2006
ASSETS Note SLR INR SLR INR
Non-current assets
Leasehold land 8 28,724,351 11,361,670 29,837,744 12,936,934
Property, plant and equipment 9 462,978,102 183,127,008 480,312,872 208,252,199

491,702,453 194,488,678 510,150,616 221,189,133
Current assets
Inventories 10 234,903,216 92,913,947 217,476,820 94,292,759
Trade receivables 11 235,579,071 93,181,276 178,863,243 77,550,834
Other receivables 12 39,409,610 15,588,131 20,436,152 8,860,628
Prepayments and advances 8,088,492 3,199,334 1,625,318 704,699
Cash and cash equivalents 13 265,402,632 104,977,729 176,768,213 76,642,479

783,383,021 309,860,417 595,169,746 258,051,399
TOTAL ASSETS 1,275,085,474 504,349,095 1,105,320,362 479,240,532
EQUITY AND LIABILITIES
Equity
Share capital 14 500,000,000 197,770,701 500,000,000 216,788,068
Accumulated profits / (losses) 169,990,236 67,238,176 48,832,190 21,172,472

669,990,236 265,008,877 548,832,190 237,960,540
Non-current liabilities
Retirement benefit obligations 15 2,566,754 1,015,257 2,536,750 1,099,874
Deferred Taxation 16 46,172,295 18,263,054 13,543,162 5,871,992

48,739,049 19,278,312 16,079,912 6,971,866
Current liabilities
Trade payable 17 486,291,533 192,348,434 429,393,891 186,174,944
Other payables 18 38,882,495 15,379,637 41,277,942 17,897,131
Income tax payable 26,879,771 10,632,062 32,830,472 14,234,509
Accrued expenses 4,302,390 1,701,773 12,529,725 5,432,590
Bank overdraft - - 24,376,230 10,568,952

556,356,188 220,061,906 540,408,260 234,308,126
TOTAL EQUITY AND LIABILITIES 1,275,085,474 504,349,095 1,105,320,362 479,240,532
The figures in INR is converted at the rate of 2.5282 = 109.9/43.47 2.3064 = 102.9/44.615
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
111
Income Statement for the period ended 31st March, 2007
Year ended 15 Months ended

31.03.2007 31.03.2006
Note SLR INR SLR INR
Turnover 1 4,777,959,022 1,977,756,205 4,349,045,969 1,897,216,356
Cost of sales (4,345,202,370) (1,803,518,266) (3,842,782,316) (1,676,365,234)

Gross profit 432,756,652 174,237,939 506,263,653 220,851,122
Other operating income 2 16,307,571 6,750,246 4,894,446 2,135,140
Administrative expenses (50,087,336) (20,732,815) (57,094,226) (24,906,635)
Distribution cost (70,016,265) (28,982,062) (91,140,962) (39,759,093)
Other operating expenses 3 - - (63,637,579) (27,761,090)

Profit from operations 4 328,960,622 131,273,309 299,285,332 130,559,444
Financing income /(cost) 5 7,452,548 3,911,785 31,700,606 13,182,868
Profit before taxation 336,413,170 135,185,094 330,985,938 143,742,312
Income tax expense 6 (115,255,124) (47,707,930) (88,195,671) (38,474,247)
Profit for the year 221,158,046 87,477,163 242,790,267 105,268,065
Earnings per share - (Rs) 7 4.42 3.88
The figures in INR is converted at the rate of: 2.415848 = ((109.9+102.9)/2)/ ((44.615+43.47)/2) 2.29233 = ((99.65+102.9)/2)/ ((43.745+44.615)/2)
Statement of changes in equity

For the period ended 31st March, 2007
Share Capital Retained Total

Profits / (Losses)
SLR SLR SLR
Balance as at 1st January 2005 500,000,000 (93,958,077) 406,041,923
Profit for the 15 months Period - 242,790,267 242,790,267
Dividend paid - (100,000,000) (100,000,000)

Balance as at 31st March 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
112
Cash Flow Statement for the period ended 31st March, 2007
31.03.2007 31.03.2006
SLR INR SLR INR
Cash flows from operating activities
Profit from operations 328,960,622 131,273,309 299,285,332 130,559,445
Adjustments for :
Depreciation on property, plant and equipment 25,757,070 10,661,708 32,594,483 14,218,931
Amortisation of leasehold land 1,113,393 460,870 1,391,740 607,129
Provision for retiring gratuity 222,904 92,267 781,925 341,105
Exchange difference - (2,980,227) - 1,210,567
Provision for bad and doubtful debts (2,070,323) (856,976) - -
(Gain)/loss on translation of foreign currency (10,315,325) (4,269,856) 27,542,516 12,015,075
(Gain)/loss on disposal of property, plant and equipment (771,292) (319,263) (122,793) (53,567)
Operating profit before working capital changes 342,897,049 134,061,832 361,473,203 158,898,685
(Increase)/decrease in inventories (17,426,396) (7,213,365) (118,036,861) (51,492,089)
(Increase)/decrease in trade and other receivables (80,082,137) (33,148,661) (73,970,513) (32,268,702)
Increase/(decrease) in trade and other payables 46,274,861 19,154,704 33,355,518 14,550,923

Cash generated from operations 291,663,377 112,854,511 202,821,347 89,688,817
Interest paid - - (1,727,148) (753,446)
Dividends paid (100,000,000) (41,393,327) (100,000,000) (43,623,737)
Income tax paid (88,576,693) (36,664,840) (40,963,475) (17,869,798)
Retiring gratuity paid (192,900) (79,848) (215,875) (94,173)

Net cash flow from operating activities 102,893,784 34,716,496 59,914,849 27,347,663
Cash flows from investing activities
Purchase and construction of property, plant and equipment (8,422,301) (3,486,271) (3,567,450) (1,556,255)
Interest received 17,767,873 7,354,714 5,885,238 2,567,361
Proceeds from sale of property, plant and equipment 771,292 319,263 647,497 282,462
Net cash flow from investing activities 10,116,864 4,187,707 2,965,285 1,293,568
Net Increase/(Decrease) in Cash & Cash Equivalents 113,010,649 38,904,202 62,880,134 28,641,231
Cash and Cash Equivalents at the beginning of the year 152,391,983 66,073,527 89,511,849 37,432,296
Cash and Cash Equivalents at the end of the year 265,402,632 104,977,729 152,391,983 66,073,527
Cash and Cash Equivalents at period ended
Cash in hand 7,567,293 2,993,178 2,126,822 922,139
Cash at bank 257,835,339 101,984,551 174,641,391 75,720,340
Bank overdraft - (24,376,230) (10,568,952)

265,402,632 104,977,729 152,391,983 66,073,527
113
Notes to the Accounts for the period ended 31.03.2007 31.03.2006
31st March, 2007 SLR INR SLR INR

8 LEASEHOLD LAND
31.03.2007 31.03.2006
Cost 38,946,767 15,405,059 38,946,767 16,886,389
SLR INR SLR INR Cumulative amortisation
As at the beginning of the year 9,109,023 3,602,996 7,717,283 3,346,030
1 TURNOVER Charge for the year 1,113,393 440,393 1,391,740 603,425
Turnover - Cement 4,777,959,022 1,977,756,205 4,349,045,969 1,897,216,356 Balance at the end of the year 10,222,416 4,043,389 9,109,023 3,949,455
2 OTHER OPERATING INCOME Written down value 28,724,351 11,361,670 29,837,744 12,936,934
Income from storage and handling 13,035,602 5,395,869 4,892,772 2,134,410
Scrap sales 430,354 178,138 1,000 436
Reversal of Provision for Leasehold land is amortised over the lease period of 30 years from15th August 1997
bad & doubtful debts 2,070,323 856,976 - -
Gain on disposals of fixed assets 771,292 319,263 - - 9 PROPERTY, PLANT AND EQUIPMENT - Refer next page
Lab service income - - 674 294
10 INVENTORIES
16,307,571 6,750,246 4,894,446 2,135,140 Naked cement 154,146,768 60,971,429 101,389,289 43,959,976
3 OTHER OPERATING EXPENSES Bags 2,568,850 1,016,087 1,414,783 613,416
Loss on disposal of property, Stores and spares 12,174,655 4,815,580 13,599,995 5,896,633
plant & equipment - - 122,793 53,567 Goods-in-transit 66,012,942 26,110,852 101,072,753 43,822,734
NSL payment on assesment - - 30,777,179 13,426,155 234,903,216 92,913,947 217,476,820 94,292,759
Promotion expense-International - - 32,737,607 14,281,368
- - 63,637,579 27,761,090 11 TRADE RECEIVABLES
Trade receivables 267,079,361 105,640,945 212,433,856 92,106,250
4 PROFIT FROM OPERATIONS Provision for bad and
Profit from operations is stated after charging all expenses including the following doubtful debts (31,500,290) (12,459,669) (33,570,613) (14,555,416)
Directors’ emoluments 1,988,229 822,994 1,615,883 704,909
Auditors’ remuneration 400,000 165,573 340,000 148,321 235,579,071 93,181,276 178,863,243 77,550,834
Depreciation and amortisation
of leasehold land 26,870,462 10,628,380 33,986,222 14,826,060 12 OTHER RECEIVABLES
Donation 43,000 17,799 3,075,000 1,341,430 Receivable from AES - - 14,592,200 6,326,830
Staff cost Note 2.1 40,003,477 16,558,770 24,960,565 10,888,731 VAT recoverable 38,330,145 15,161,159 5,718,088 2,479,227
2.1 Staff cost Others 1,079,465 426,972 125,864 54,571
— Salaries and related costs 35,132,359 14,542,452 21,003,690 9,162,594
— Defined contribution 39,409,610 15,588,131 20,436,152 8,860,628
plan cost-EPF and ETF 3,930,593 1,627,003 3,174,950 1,385,032
— Defined benefit plan 13 CASH AND CASH EQUIVALENTS
cost-Retiring gratuity 940,525 389,315 781,925 341,105 Cash in hand 7,567,293 2,993,178 2,126,822 922,139
40,003,477 16,558,770 24,960,565 10,888,731 Cash at bank 257,835,339 101,984,551 174,641,391 75,720,340
5 FINANCING INCOME /(COST) 265,402,632 104,977,729 176,768,213 76,642,479

Interest on overdrafts and
temporary facilities - - (1,727,148) (753,446) 14 SHARE CAPITAL
Interest income 17,767,873 7,354,714 5,885,238 2,567,361 Authorised
Gain/(loss) on translation 100,000,000 Ordinary Shares
of foreign currency (10,315,325) (3,442,929) 27,542,516 11,368,954 of Rs 10/= each 1,000,000,000 395,541,401 1,000,000,000 433,576,136
7,452,548 3,911,785 31,700,606 13,182,868 Issued and fully paid
6 INCOME TAX EXPENSE 50,000,000 Ordinary Shares
Income tax on profits 81,807,912 33,863,016 74,466,343 32,485,001 of Rs10/= each 500,000,000 197,770,701 500,000,000 216,788,068
Transfered to / (from)
deferred tax 32,629,133 13,506,284 13,543,162 5,908,033 15 RETIREMENT BENEFIT OBLIGATIONS
Social Responsibility Levy 818,079 338,630 186,166 81,213
Provision for retiring gratuity
115,255,124 47,707,930 88,195,671 38,474,247 As at the beginning of the year 2,536,750 1,003,390 1,970,700 854,448
Provision for the year 222,904 88,168 781,925 339,024
Income tax on business income 2,759,654 1,091,557 2,752,625 1,193,472

Profit before tax 336,413,170 135,185,094 330,985,938 144,388,434 Payments made during the year (192,900) (76,300) (215,875) (93,598)
Disallowable expenses 28,034,438 11,604,387 38,681,048 16,874,118 Balance at the end of the year 2,566,754 1,015,257 2,536,750 1,099,874
Allowable expenses (4,852,392) (2,008,566) (17,163,590) (7,487,399)
Total statutory income 359,595,216 144,780,914 352,503,396 153,775,153 16 DEFERRED TAX LIABILITIES
Tax loss brought forward from As at the beginning of
previous years claimed (125,858,326) (52,096,949) (123,376,188) (53,821,303) the year 13,543,162 5,356,881 - -
Provision for the year 32,629,133 12,906,173 13,543,162 5,871,992
Taxable Income 233,736,890 92,683,965 229,127,208 99,953,850
Balance at the end of
Tax liability @ 35%/(32.5%) 81,807,912 33,863,016 74,466,343 32,485,001 the year 46,172,295 18,263,054 13,543,162 5,871,992
Income tax on profit 81,807,912 33,863,016 74,466,343 32,485,001
17 TRADE PAYABLES
As per the provisions of Inland Revenue (Amendment) Act No.12 of 2004, with effect from the year of UltraTech Cement Ltd 478,299,911 189,187,417 426,341,744 184,851,606
assessment 2004/2005, the brought forward tax loss (other than any capital loss) which could be Other trade payables 7,991,621 3,161,017 3,052,147 1,323,338
claimed in arriving at the Assessable Income is restricted to 35% of the total statutory income for the
year. 486,291,533 192,348,434 429,393,891 186,174,944
The tax loss of the Company brought forward from the year of assessment 2005/2006 was SLR.
423,258,345 and the Company claimed SLR 125,858,326 during the year of assessment 2006/2007. The 18 OTHER PAYABLES
tax loss carried forward for the year of assessment 2007/2008 is SLR 297,400,019. Retention money from contractors - - 10,409,883 4,513,477
7 EARNINGS PER SHARE Debtors deposit 7,107,393 2,811,268 6,252,393 2,710,888
The calculation of the basic earnings per ordinary share is based on the profits attributable to the Withholding tax payable 277,034 109,578 177,929 77,146
ordinary shareholders divided by weighted average number of shares in issue during the year. Economic service charge payable - - 8,147,719 3,532,657
31.03.2007 31.03.2006 Stamp Duty Payable 365,636 144,624 - -
SLR INR SLR INR
Due to Larsen and Toubro on
Net profit attributable to the
account of AES - - 9,376,525 4,065,437
ordinary shareholders (Rs.) 221,158,046 87,477,163 242,790,267 105,268,065
Number of ordinary Distribution expenses payable 30,027,624 11,877,169 6,011,286 2,606,351
shares in issue 50,000,000 50,000,000 50,000,000 50,000,000 Others 1,104,808 436,997 902,207 391,175
Basic earnings per ordinary
share-Annualised (Rs.) 4.42 1.75 3.88 1.68 38,882,495 15,379,637 41,277,942 17,897,131
114
Notes to the Accounts
PROPERTY, PLANT AND EQUIPMENT (Note No. 9)
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
Balance as at 31-03-06 37,574,084 489,473,995 2,720,045 2,039,822 5,140,157 71,748,890 1,167,013 1,501,219 1,782,971 2,274,978 615,423,174
Additions during the period - 1,122,775 1,010,356 - 572,165 - - 22,665 3,468,750 115,217 6,311,928
Disposals during the period - - - - - - - - (650,053) - (650,053)

Balance as at 31-03-07 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 2,390,195 621,085,049
Depreciation
Balance as at 31-03-06 7,785,811 102,820,614 2,009,860 1,895,981 2,783,916 15,069,685 291,754 1,228,738 943,612 280,332 135,110,303
Charge for the period 1,502,963 19,590,188 291,486 113,503 623,928 2,869,956 46,681 131,665 356,323 230,378 25,757,070

Balance as at 31-03-07 9,288,775 122,410,801 2,301,346 2,009,484 3,407,844 17,939,640 338,435 1,360,403 649,882 510,710 160,217,320
Written down value
As at 31-03-07 28,285,310 368,185,968 1,429,055 30,338 2,304,478 53,809,250 828,578 163,481 3,951,786 1,879,485 460,867,729
Capital Work in Progress 2,110,373

462,978,102
As at 31-03-06 29,788,273 386,653,381 710,185 143,841 2,356,241 56,679,206 875,259 272,480 839,360 1,994,646 480,312,872
Plant & Office Lab Computer Electrical HT power Furnitures Motor Motor
Buildings machinery equipment equipment equipment installation line & fittings vehicles cycles Total
INR INR INR INR INR INR INR INR INR INR INR
Cost
Balance as at 31-03-06 14,862,108 193,607,236 1,075,891 806,834 2,033,145 28,379,661 461,602 593,794 705,239 899,848 243,425,358
Additions during the period - 444,104 399,638 - 226,315 - - 8,965 1,372,034 45,573 2,496,629
Balance as at 31-03-07 14,862,108 194,051,340 1,475,528 806,834 2,259,460 28,379,661 461,602 602,759 1,820,150 945,421 245,664,864
Depreciation
Balance as at 31-03-06 3,079,614 40,669,815 794,983 749,939 1,101,154 5,960,688 115,400 486,016 373,238 110,883 53,441,730
Charge for the period 594,484 7,748,731 115,295 44,895 246,789 1,135,186 18,464 52,079 140,941 91,124 10,187,989
Balance as at 31-03-07 3,674,098 48,418,547 910,278 794,834 1,347,944 7,095,874 133,864 538,095 257,055 202,007 63,372,596
Written down value
As at 31-03-07 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
As at 31-03-06 11,782,494 152,937,420 280,908 56,895 931,991 22,418,973 346,202 107,778 332,002 788,965 189,983,629
115
31.03.2007 31.03.2006
SLR INR SLR INR

19 RELATED PARTY TRANSACTION
19.1 Identify of related parties
UltraTech Cement Ltd. Incorporated in India is the ultimate Parent Company.
The Company’s transactions with its related Companies are as follows.
UltraTech Cement Ltd
- Import of cement 3,487,243,521 1,443,486,116 2,190,341,157 955,508,656
- Import of spares for machinery 1,425,157 589,920 3,753,121 1,637,252
- Amount payable as at
the balance sheet date 478,299,911 189,187,417 426,341,744 184,851,606
Ceylinco Homes International Ltd.
- Sale of Cement - - 3,038,791 1,325,634
- Amount Receivable as at the Balance Sheet date - - 249,790 108,303
International Consultancy & Corporate Services (Pvt) Ltd
- Secretarial services 207,000 85,684 323,437 141,095
Ceylinco Insurance Company Ltd
- Insurance Services 1,024,592 424,113 15,056,015 6,567,996
- Commission on Sales 439,000 181,717 987,895 430,957
- Professional services - - - -
- Amount payable as at the balance sheet date - - 43,677 18,937
Ceylinco CISCO Security Transport & Allied Services (Pvt) Ltd
- Cash Transportation services 287,709 119,092 431,250 188,127
- Security Services 1,493,573 618,240 - -
Ceylinco Internet Services Ltd.
- E-mail & Internet services 6,250 2,587 15,812 6,898
19.2 Transactions with key management personnel
Directors emoluments 1,988,229 822,994 - -
Key management personnel compensation
House rent 765,000 316,659 - -
Medical expenses reimbursement 73,763 30,533 - -
Travelling 248,530 102,875 - -
Other non cash benefits 177,848 73,617 - -
20 DIRECTORS’ INTEREST IN CONTRACTS
No director of the Company is directly or indirectly interested in any contract with the Company other than the following:
Mr. J. L. B. Kotelawala and Mr. A. R. Gunawardena are Directors of the Company are also Directors of the following Companies.
Ceylinco Insurance Company Ltd.
Ceylinco Developers (Pvt) Ltd.
Ceylinco Homes International Ltd.
Ceylinco International Trading Co. Ltd.
International Consultancy & Corporate Services (Pvt) Ltd.
Mr. J. L. B. Kotelawala a Directors of the Company are also a Director of the following Company.
Ceylinco CISCO Securities Transport & Allied Services (Pvt) Ltd.
Mr. Saurabh Misra, Mr. Kailash Chand Birla, Mr. M. R. Prasanna and Mr. O. P. Puranmalka are directors of the Company.
Mr. Kiran G. Redkar is an alternative director for Mr. O. P. Puranmalka.
21 CAPITAL COMMITMENTS
There were no capital commitments as at the balance sheet date which requires disclosure in the accounts.
22 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.
23 CONTINGENT LIABILITIES
There are no contingent liabilities as at the balance sheet date which would require adjustments or disclosure in the accounts
116
ACCOUNTING POLICIES 2.1.2 Owned Assets
1. CORPORATE INFORMATION Items of Property, Plant and Equipment are stated at cost less
accumulated depreciation. Where an item of Property, Plant and
• Domicile and Legal Form Equipment comprises major components having different useful
lives, they are accounted for as separate items of Property, Plant
Larsen and Toubro Ceylinco (Pvt) Ltd was incorporated on and Equipment.
29th August 1997 as a Private limited liability Company and
domiciled in Sri Lanka. Consequence to the change in the major 2.1.3 Subsequent Expenditure
shareholder of the Company, the Company was renamed as
UltraTech Ceylinco (Pvt) Ltd on 11 March 2005. Expenditure incurred to replace a component of an item of
Property, Plant and Equipment that is accounted for separately,
• Principal Business Activities is capitalised with the carrying amount of the component being
written off. Other subsequent expenditure is capitalised only
The Company imports naked cement from India and markets it when it increases the future economic benefits embodied in the
in Sri Lanka in 50kg bags and in bulk form. item of Property, Plant and Equipment. All other expenditure is
recognised in the income statement as an expense as incurred.
• The Name of the Parent Enterprise and The Ultimate Parent
Enterprise 2.1.4 Depreciation
The shareholding of the Company at the Balance Sheet date is Depreciation is charged on a straight-line basis over the estimated
as follows. useful lives of the assets. No depreciation is charged in the year
of purchase and full depreciation is charged in the year of
UltraTech Cement Limited 80% disposal.
Ceylinco Insurance Company Ltd 18% The estimated useful lives are as follows.
Ceylinco International Trading Ltd 2% ASSET No. Of Years
Accordingly, UltraTech Cement Ltd incorporated in India is the
Building 25
Ultimate Parent Company.
Plant and Machinery 25
1.1 Statement of Compliance
Lab Equipment 06
The financial statements have been prepared in accordance with
the accounting standards issued by the Institute of Chartered Electronic Installation 25
Accountant of Sri Lanka (ICASL), and the requirements of the
Companies Act No. 17 of 1982. Office Equipment 06
1.2 Basis of Preparation Motor Cars 07
Motor Cycles 10
The financial statements are presented in Sri Lankan Rupees
and prepared on the historical cost basis. The Accounting Policies HT Power line 25
are consistent with those used in the previous year.
Computers 06
1.3 Foreign Currency Transactions
Furniture & Fittings 06
Transactions in foreign currencies are translated to rupees at the
foreign exchange ruling at the date of the transaction. Monetary 2.2 Inventories
assets and liabilities denominated in foreign currencies at the
balance sheet date are translated to rupees at the foreign exchange Inventories are stated at the lower of cost and net realisable
rate ruling at that date. Foreign exchange differences arising value. Net realisable value is the estimated selling price in the
on translation are recognised in the income statement. ordinary course of business, less the estimated costs and selling
Non-monetary assets and liabilities denominated in foreign expenses.
currencies, which are stated at historical cost, are translated to The cost of inventory is based on the FIFO cost price principle
rupees at the foreign exchange rate ruling at the date of the and includes expenditure incurred in acquiring the inventories
transaction. and bringing them to their existing location and condition.
2. ASSETS AND BASES OF THEIR VALUATIONS 2.3 Trade and Other Receivable
2.1 Property, Plant & Equipment Trade and other receivable are stated at the amounts estimated
to be realised. Provisions have been made in the accounts where
2.1.1 Leasehold Property necessary for bad and doubtful debts.
Lease hold Property located at 81/11/1, New Nuge Road, 2.4 Cash and Cash Equivalents
Peliyagoda has been sub leased for a period of 30 years from
East West Properties Limited who have taken on lease the said Cash and cash equivalents comprise cash balance and short-term
premises for a period of 99 years from the Urban Development highly liquid investments that are readily convertible to known
Authority. amounts of cash.
The sub-lease rentals and related expenses are amortised on a For the purpose of Statement of Cash Flow, cash and cash
yearly basis as per the schedule of the agreement. equivalents are presented net of bank overdraft.
117
3. LIABILITIES AND PROVISIONS 4. REVENUE RECOGNITION
All known liabilities have been accounted in preparing the financial Revenue is generally accounted for on accrual basis and is recognised
statements. as follows:
4.1 On sale of goods all significant risks and rewards of ownership
3.1 Classification of Liabilities have been transferred to the buyer, which normally occurs on
Liabilities classified as current liabilities on the Balance Sheet delivery of the goods.
date are those, which fall due for payment on demand within 4.2 Interest income on short-term investment is accounted on cash
one year from Balance Sheet date. Non-current liabilities are basis.
those balances that fall due for payment after one year from the 5. BORROWING COST
Balance Sheet date.
Borrowing costs are recognised as an expense in the year in which
3.2 Retirement Benefit Plans they are incurred, except to the extent where borrowing costs that are
directly attributable to the acquisition, construction or production of a
3.2.1 Defined Benefit Plan qualifying asset that take a substantial period of time to get ready for
Provisions have been made in the accounts for retiring Gratuity intended use or sale is capitalised as part of that asset.
payable under the Payment of Gratuity Act, No. 12 of 1983 and 6. TAXATION
it is provided from the first year of service for all employees in 6.1 The liability to taxation has been computed according to the
conformity with SLAS 16 (Retirement Benefit Costs). However, provisions of the Inland Revenue Act No. 38 of 2000 and
according to the Act, liability to an employee arises on amendments thereto.
completion of five years service. The liability is not externally
6.2 Deferred tax is provided using the liability method, providing
funded nor is it actuarially valued.
for timing differences between the carrying amounts of assets
3.2.2 Defined Contribution Plans and liabilities for financial reporting purposes and the amounts
used for taxation purpose.
Contributions to Employees Provident Fund and Employees Trust
7. CASH FLOW
Fund are recognised as an expense in the Income Statement as
incurred. The Cash Flow Statement has been prepared using the Indirect method.
118
UltraTech Ceylinco (Pvt) Ltd NOTES
119
UltraTech Ceylinco (Pvt) LtdCement – Unit Locations
UltraTech
10
4 7
5 14 8
2
11
12
* Map not to scale
13
Composite Units Terminals

1. Andhra Pradesh Cement Works (Andhra Pradesh) 11. Navi Mumbai Cement Unit (Maharashtra)
2. Awarpur Cement Works (Maharashtra) 12. Mangalore Cement Unit (Karnataka)
3. Gujarat Cement Works (Gujarat) 13. Colombo Bulk Terminal (Sri Lanka) – Joint Venture
4. Hirmi Cement Works (Chhatisgarh)
5. Jafrabad Cement Works (Gujarat) 14. Captive Jetty – Gujarat Cement Works (Gujarat)
Grinding Units
6. Arakkonam Cement Works (Tamil Nadu)
7. Jharsuguda Cement Works (Orissa)
8. Magdalla Cement Works (Gujarat)
9. Ratnagiri Cement Works (Maharashtra)
10. West Bengal Cement Works (West Bengal)
120
Registered Office :
‘B’ Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road,
Andheri (East), Mumbai 400 093
Dear Shareholder(s)
Sub: Request for fresh Specimen Signature(s) of Shareholders holding Shares in Physical Form.
1. Your specimen signature(s) recorded with us are old and /or pattern of which in course of time
may have undergone change.
2. For providing better services to our shareholders and also to update our records we request you to
kindly arrange to forward to us or the RTA your fresh specimen signature(s) signed by you /all
shareholder(s) and duly attested by the Manager of a Nationalised Bank with whom you are
maintaining your bank account.
3. On receipt of your duly attested signature(s), we shall update our records.
4. Please always quote your Ledger Folio while replying to us.
5. Please fill in your E-mail ID in the space provided.
6. We solicit your kind co-operation in the matter.
SPECIMEN SIGNATURE(S) FORM
LEDGER FOLIO NO.________________ E-mail ID :_________________________ Date:______________
Name of the Shareholder(s) Specimen Signature(s) of shareholder(s) Father’s/ Husband’s Name Occupation
1.
2.
3.
4.
Address of the Sole/1st Shareholder:

___________________________________________________________________________________________
___________________________________________________________________________________________
City: State: Pin Code:
Signature to be Attested by Bank Manager

(Seal with Stamp of Bank,
Full Name, designation of Manager of Bank
and address of the Bank)
UltraTech Cement Limited ATTENDANCE
Registered Office : SLIP
ANNUAL GENERAL MEETING - 20th JULY, 2007 AT 3.30 P.M.
NAME & ADDRESS OF THE REGISTERED SHAREHOLDER

DP. ID
Client ID/
Folio No.
No. of Shares
I certify that I am a registered shareholder/proxy for the registered shareholder of the Company.
I hereby record my presence at the ANNUAL GENERAL MEETING of the Company at Ravindra Natya
Mandir, P. L. Deshpande Maharashtra Kala Academy, Near Siddhivinayak Temple, Sayani Road, Prabhadevi,
Mumbai 400 025 on Friday, 20th July, 2007 at 3.30 p.m.
.................................................................
Member’s/Proxy’s Signature
Note : Please complete this and hand it over at the entrance of the hall.
(TEAR HERE)
UltraTech Cement Limited FORM OF PROXY

Registered Office :
I/We .......................................................................................................................................................................
of ...................................................... in the district of .......................................... being a member/members of
UltraTech Cement Limited hereby appoint .......................................................................................................
of .......................................... in the district of ............................................................................. or/failing him
............................................. of .................... in the district of ...........................................................................
as my/our proxy to vote for me/us on my/our behalf at the ANNUAL GENERAL MEETING of the
Company to be held on Friday, 20th July, 2007 and at any adjournment thereof.
Signed this ............ day of ..................... 2007
DP. ID
Affix a
Client ID/ Signature ........................ Re. 1 .............................
Folio No. Revenue
Stamp
No. of Shares
Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the Meeting.
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

www.adityabirla.com
www.ultratechcement.com

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www.adityabirla.

INFOMEDIA INDIA LIMITED

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

Chief Financial Officer Auditors

Company Secretary Solicitors

Notice ................................................................ 8 Balance Sheet .................................................... 64

Report on Corporate Governance ..................... 24 Cash Flow Statement ......................................... 66

Shareholder Information ................................... 36 Schedules ........................................................... 67

Social Report ..................................................... 45 Statement Relating to Subsidiary Companies ... 85

Environment Report .......................................... 47 Consolidated Financial Statements ................... 86

India stands in the midst of an epochal

Your Company has posted improved

Your Company is augmenting capacities by

Your Company’s focus continues to be on sustaining Plant performance, improving service

“For our success, The Cement sector is on a roll as the housing

much credit must go and infrastructure sectors, coupled with the

to our people. increasing industrial investment continue to

The quality of our people, g r o w. T h e o u t l o o k f o r y o u r C o m p a n y i s

I deeply acknowledge their be unwavering. I deeply acknowledge their

contribution in perpetuating such contribution in perpetuating such a meritocratic

a meritocratic organisation” organisation.

together by a common set of values – Integrity, Passion, Seamlessness

Commitment, Passion, Seamlessness and Speed. and Speed.”

21st April, 2007 Kumar Mangalam Birla

By Order of the Board

Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956:

By Order of the Board

Chairman / Member of the — — — — —

Chairman / Member of the

b) Shareholders’ 1. Larsen & Toubro Ltd. - — — 1. Shree Digvijay —

Awarpur Cement Works (ACW)

Sales Realisation (Net of Excise Duty)

Operating Profit (PBIDT) 1,491 607 146

Gross Profit (PBDT) 1,404 517 172

Depreciation & Amortisation of Goodwill 229 231 -1

Profit Before Tax 1,175 286 311

Current Tax & Fringe Benefit Tax 404 63 537

Deferred Tax (15) (4) 269

Net Profit before Minority interest 787 227 247

Net Profit after Minority Interest 785 225 249

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

Date of Board Meeting City Board Strength No. of Directors

GENERAL BODY MEETINGS

• Whether special resolutions passed in the previous 3 AGMs.

• Person who conducted the postal ballot exercise

— Any website, where displayed www.ultratechcement.com

For UltraTech Cement Limited

Sensex UltraTech Nifty

10. Stock Performance and Returns:

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE

Whitehoppleman, an independent UK based consulting organisation conducts annual global

Green surroundings at Andhra Pradesh Cement Works (APCW)

RESEARCH AND DEVELOPMENT

For and on behalf of the Board

Mumbai Kumar Mangalam Birla

a) Energy Conservation Measures taken

— Installation of Variable Speed Drives

— Water Injection in Top stage cyclones

— Replacement of Preheater fans with energy saving fans

— Usage of Humicool fills for P&V system

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

— Installation of Variable Frequency Drives

— DG waste heat recovery system for Production of Desalinated Water