1.  We have audited the attached Consolidated Balance Sheet of
 CARBORUNDUM UNIVERSAL LIMITED (the Company), its subsidiaries and
 jointly controlled entities (the Company its subsidiaries and jointly
 controlled entities constitute the Group) as at 31st March, 2011, the
 Consolidated Profit and Loss Account and the Consolidated Cash Flow
 Statement of the Group for the year ended on that date, both annexed
 thereto.  The Consolidated Financial Statements include investments in
 associates accounted on the equity method in accordance with Accounting
 Standard 23 (Accounting for Investments in Associates in Consolidated
 Financial Statements) and the jointly controlled entities accounted in
 accordance with Accounting Standard 27 (Financial Reporting of
 Interests in Joint Ventures) as notified under the Companies
 (Accounting Standards) Rules, 2006. These financial statements are the
 responsibility of the Companys Management and have been prepared on
 the basis of the separate financial statements and other information
 regarding components. Our responsibility is to express an opinion on
 these Consolidated Financial Statements based on our audit.
 
 2.  We conducted our audit in accordance with the auditing standards
 generally accepted in India. Those Standards require that we plan and
 perform the audit to obtain reasonable assurance about whether the
 financial statements are free of material misstatements. An audit
 includes examining, on a test basis, evidence supporting the amounts
 and the disclosures in the financial statements. An audit also includes
 assessing the accounting principles used and the significant estimates
 made by the Management, as well as evaluating the overall financial
 statement presentation. We believe that our audit provides a reasonable
 basis for our opinion.
 
 3.  We did not audit the financial statements of certain subsidiaries
 and joint ventures, whose financial statements reflect total assets of
 Rs.6,490 million, as at 31st March, 2011, total revenues of Rs.7,904
 million and net cash inflows amounting to Rs.200 million for the year
 ended on that date as considered in the Consolidated Financial
 Statements. These financial statements have been audited by other
 auditors whose reports have been furnished to us and our opinion 
 in so far as it relates to the amounts included in respect of these 
 subsidiaries and joint ventures is based solely on the reports of the 
 other auditors.
 
 4.  We report that the Consolidated Financial Statements have been
 prepared by the Company in accordance with the requirements of
 Accounting Standard 21 (Consolidated Financial Statements), Accounting
 Standard 23 (Accounting for Investment in Associates in Consolidated
 Financial Statements) and Accounting Standard 27 (Financial Reporting
 of Interests in Joint Ventures) as notified under the Companies
 (Accounting Standards) Rules, 2006.
 
 5.  Based on our audit and on consideration of the separate audit
 reports on the individual financial statements of the Company, and the
 aforesaid subsidiaries and joint ventures and associates, and to the
 best of our information and according to the explanations given to us,
 in our opinion, the Consolidated Financial Statements give a true and
 fair view in conformity with the accounting principles generally
 accepted in India:
 
 (i) in the case of the Consolidated Balance Sheet, of the state of
 affairs of the Group as at 31st March, 2011;
 
 (ii) in the case of the Consolidated Profit and Loss Account, of the
 profit of the Group for the year ended on that date and
 
 (iii) in the case of the Consolidated Cash Flow Statement, of the cash
 flows of the Group for the year ended on that date.
 
                                            For Deloitte Haskins & Sells
                                                   Chartered Accountants
                                              (Registration No. 008072S)
 
                                                           B. RAMARATNAM
 Chennai,                                                        Partner
 April 30, 2011                                   (Membership No. 21209)