A.  Consolidation is done based on the audited financials of the
 subsidiaries as on 31.03.2011. In respect of subsidiaries incorporated
 outside India, the audited financials were translated into Indian
 currency as per Accounting Standard 11 (revised) - Accounting for the
 effects of changes in Foreign exchange rates.
 
 b.  The consolidated financials for the current year include the
 financials of CUMI Abrasives & Ceramics Company Ltd, China for the
 period of fifteen months from 01.01.2010 to 31.03.2011.
 
 c. Equity method of accounting in consolidation is done based on
 audited financials of the Associate as on 31.03.2011. In respect of
 Laserwords, the consolidated financials of the company include that of
 its subsidiaries : Laserwords US Inc., Samvit Education Services Pvt
 Ltd and Laserwords Learning Pte Ltd.
 
 d.  Proportionate consolidation is done based on audited financials of
 the Joint ventures as on 31.03.2011 and as approved by the Board of
 Directors of that company.
 
 In respect of Wendt, the consolidated financials of the company with
 its subsidiary Wendt Grinding Technoligies Ltd, Thailand and Wendt
 Middle East FZE, Sharjah were considered for consolidation.
 
 e.  During the year, the shareholdings of the Parent company in three
 overseas entities, namely, CUMI America Inc., CUMI Middle East FZE and
 CUMI Canada Inc., were sold to the overseas subsidiary CUMI
 International Limited, Cyprus based on the valuation done by approved
 Investment Bankers. The Profit / Loss arising out of the sale does not
 have any bearing on the consolidated financials since the sale is
 within the Group.
 
 2 Pending approval of the proposed dividends in the annual general
 meetings of the respective subsidiaries and joint ventures, the same
 are not considered in the consolidated accounts as proposed dividends
 and are included under surplus carried to balance
 
 sheet under Reserves and Surplus.
 
                                                       (Rs. million)
 
                                              31.03.2011  31.03.2010
 
 
 4 Contingent Liabilities:
 
 a)      Bills discounted outstanding           6.07         24.27
 
 b)     Outstanding letters of credit         111.53        146.98
  
 
 6 a) The Parent Company has adopted the Accounting Standard - 15
 (Revised) on Employee Benefits effective from 1st April 2006. The
 domestic subsidiaries and domestic joint ventures has adopted the
 standard from the date it became mandatory.
 
 b) The details of actuarial valuation in respect of Gratuity liability
 in respect of Parent Company and its domestic subsidiaries and joint
 ventures are given below :
 
 c) During the year, the Parent Company and certain domestic
 subsidiaries and joint ventures had made provision for Longterm
 accumulated compensated absences on actuarial basis, consistent with
 previous year.
 
 e) With respect to the Provident Fund Trust administered by the Parent
 Company, the Parent Company shall make good the deficiency if any in
 the interest rate declared by Trust below statutory limit. Having
 regard to the assets of the Fund and the return on the investments, the
 Parent Company does not expect any deficiency in the foreseeable
 future.
 
 7 a) Pursuant to the approval accorded by shareholders at their Annual
 General Meeting held on 27th July 2007, the Compensation and Nomination
 Committee of the Company formulated Carborundum Universal Limited
 Employee Stock Option Scheme 2007 (ESOP 2007 or the Scheme).
 
 b) Under the Scheme, options not exceeding 46,67,700 have been reserved
 to be issued to the eligible employees, with each option conferring a
 right upon the employee to apply for one equity share. The options
 granted under the Scheme would vest as per the following schedule
 (except Grant V B):
 
 20% on expiry of one year from the date of grant; 20% on expiry of two
 years from the date of grant; 30% on expiry of three years from the
 date of grant; and 30% on expiry of four years from the date of grant.
 
 The options granted to the employees would be capable of being
 exercised within a period of three years from the date of vesting.
 
 In respect of Grant V B, the above percentages should be read as : 40%,
 30% and 30%.
 
 c) The exercise price of the option is equal to the latest available
 closing market price of the shares on the stock exchange where there is
 highest trading volume as on the date prior to the date of the
 Compensation and Nomination Committee resolution approving the grant.
 
 11 (A) Notes to Segmental Reporting
 
 a.  Business Segments
 
 The Company has considered business segment as the primary segment for
 disclosure. The business segments are : Abrasives, Ceramics,
 Electro-minerals, IT services and Power. Abrasive segment comprise of
 Bonded, Coated, Processed cloth, Polymers, Power tools and Coolants.
 
 Ceramics comprise of Super Refractories, Industrial Ceramics, Bio
 ceramics, Ceramic Fibre products, Anti-corrosives and Calcia Stabilised
 Zirconia.
 
 Electrominerals include abrasive / refractory grains, micro grits for
 the photovoltaic industry and captive power generation from hydel power
 plant.
 
 IT services include web enabling services and digitised data capture.
 
 Power denote the generation of power from Natural Gas.
 
 The above segments have been identified taking into account the
 organisation structure as well as the differing risks and returns of
 these segments.
 
 b.  Geographical Segments
 
 The geographical segments considered for disclosure are : India and
 Rest of the world. All the manufacturing facilities and Sales offices
 are located in India, USA, Australia, Canada, Middle East (RAK),
 Russia, South Africa and China.
 
 Geographical revenues are segregated based on the location of the
 customer who is invoiced or in relation to which the revenue is
 otherwise recognised
 
 c.  Segmental assets includes all operating assets used by respective
 segment and consists principally of operating cash, debtors,
 inventories and fixed assets net of allowances and provisions.
 Segmental liabilities include all operating liabilities and consist
 primarily of creditors and accrued liabilities. Segment assets and
 liabilities do not include income tax assets and liabilities
 
 3 Provision for Dividend Tax has been made considering the credit
 amounting to Rs.5.34 million (Previous year Rs.7.05 million) available
 for set off in respect of dividend tax payable on dividends to be
 distributed by three subsidiary companies, based on the provision under
 subsection (1A) of Section 115 O of the Income Tax Act.
 
 Dividend Tax on the Interim Dividend has been paid after availing the
 credit amounting to Rs.6.15 million (Previous year - Nil) in respect of
 the Dividend Tax paid on the interim dividends received from a
 subsidiary.
 
 4 Previous year figures have been regrouped wherever necessary to
 conform to current years grouping.