(Rs. in Crore)
 
 1.  Contingent Liabilities not provided for in respect of: 
 
                                         Current Year    Previous Year
 
 (a)Claims/Demands against the Company 
    challenged by the Company and not 
    acknowledged as debts
 
 - Excise Duty/Cenvat Credit/Service Tax      7.65         33.18
 
 - Water Cess                                22.53         19.05
 
 - Custom Duty                                3.70          1.97
 
 - Sales Tax/VAT                              2.01          0.17
 
 - Others                                    36.05         38.14
 
 (b)   Custom Duty which may arise if
     obligation for exports is not
     fulfilled against import of raw
     materials and machinery                  0.85          1.43
 
 (c) Letter of Undertaking-cum-Indemnity,
     Corporate Guarantees given to Bank/
     Financial Institutions for finance 
     provided to subsidiaries and joint
     ventures                               378.68         84.00
 
 -   Amount outstanding against the above   178.36         65.00
 
 
 2.  Estimated amount of contracts
     remaining to be executed on capital 
     account and not provided (Net of
     advance paid Rs. 43.60
     crore, Previous Year Rs. 14.63 crore)    226.17         25.74
 
 3.  The reported numbers for the previous year ended 31st March, 2010,
 are not comparable as same include results of the discontinued Sponge
 Iron and Cement business of the Company, sold/demerged during the
 Financial Year 2009-10, effective from 22nd May, 2009, and 1st October,
 2009, respectively.
 
 4.  Idea Cellular Limited (Idea), an Associate of the Company, was
 originally a tripartite joint venture between A.V. Birla Group, Tata
 Group and AT&T Group. With the exit of AT&T and the Tata Group, Idea is
 now part of A.V. Birla Group. Prior to its exit, Tata Group had alleged
 that the A.V. Birla Group had committed material breach of the
 Shareholders Agreement and the Tata Group invoked the arbitration
 clause, pursuant to which an Arbitral Tribunal has been constituted,
 which has taken up the claims of the Tata Group and the counter-claims
 of the A.V. Birla Group and proceedings are on going. The Company
 believes that it has a strong case to counter the allegations of breach
 and it does not contemplate any liability to arise on this matter.
 
 5.  During the year, the Company has entered into a Joint Venture
 agreement with Essel Mining and Industries Ltd. to form a Joint Venture
 Company namely Bhubneshwari Coal Mining Company Limited to undertake
 contract coal mining business.
 
 6.  During the year, under a Scheme of Amalgamation under Sections 391
 to 394 of the Companies Act, 1956, Samruddhi Cement Limited (SCL), a
 subsidiary of the Company, has been amalgamated with UltraTech Cement
 Ltd. (UTCL), another subsidiary of the Company, w.e.f. 1st July, 2010.
 Accordingly, the shareholders of SCL have been issued 4 (four) equity
 shares of UTCL of the face value of Rs. 10 each credited as fully paid
 up, in lieu of 7 (seven) equity shares of SCL of the face value of Rs. 5
 each (fully paid up). As a result, shareholding of the Company in UTCL
 stands increased to 60.34%.
 
 In the previous year, under a scheme of Arrangement under Sections 391
 to 394 of the Companies Act, 1956 (the scheme), the erstwhile Cement
 Business of the Company (Net Asset Value Rs. 4,088.26 crore) was
 transferred to SCL w.e.f. 1st October, 2009. In term of the scheme, SCL
 issued one equity share of the face value of Rs. 5 each fully paid for
 every one fully paid-up equity share of the Company on record date.
 
 7.  During the year, the Company has acquired 4,000 additional shares
 of Birla Lao Pulp and Plantation Company Limited, a Joint Venture of
 the Company, at a cost of Rs. 17.86 crore.
 
 8. There are no Micro, Small and Medium Enterprises, as defined in the
 Micro, Small and Medium Enterprises Development Act, 2006, to whom the
 Company owes dues on account of principal amount together with interest
 and accordingly no additional disclosures have been made. The above
 information regarding Micro, Small and Medium Enterprises have been
 determined to the extent such parties have been identified on the basis
 of information available with the Company. This has been relied upon by
 the Auditors.
 
 9. Segment Reporting:
 
 (a) Primary Segment Reporting (by Business Segment)
 
 (i) Segments have been identified in line with the Accounting Standard
 on Segment Reporting (AS-17), taking into account the organisational
 structure as well as the differential risks and returns of these
 segments. Details of products included in each of the segments are as
 under: Fibre and Pulp - Viscose Staple Fibre and Rayon Grade Pulp
 
 Chemicals - Caustic Soda and Allied Chemicals
 
 Cement - Grey and White Cement (upto 30th September, 2009)
 
 Sponge Iron - Sponge Iron (upto 22nd May, 2009)
 
 Textiles -Yarn
 
 10. Related Party Transactions:
 
 (a) Parties where control exists – Subsidiaries:
 
 Sun God Trading and Investments Limited Samruddhi Swastik Trading and
 Investments Limited Samruddhi Cement Limited (w.e.f. 4th September,
 2009 and upto 30th June, 2010) UltraTech Cement Limited Dakshin Cement
 Limited UltraTech Cement Lanka Private Limited (previously known as
 UltraTech Ceylinco (Private) Limited)
 
 UltraTech Cement Middle East Investment Limited (w.e.f. 3rd March,
 2010)
 
 Star Cement Co. LLC, Dubai, UAE
 
 Star Cement Co. LLC, RAK, UAE
 
 Al Nakhla Crusher LLC, Fujairah, UAE
 
 Arabian Cement Industry LLC, Abu Dhabi, UAE
 
 Arabian Gulf Cement Co. WLL, Bahrain
 
 Emirates Power Company Ltd., Bangladesh
 
 Emirates Cement Bangladesh Ltd., Bangladesh
 
 Harish Cement Limited
 
 Grasim Bhiwani Textiles Limited
 
 Vikram Sponge Iron Limited (upto 21st May, 2009)
 
 (b) Other Related Parties with whom transactions have taken place
 during the year:
 
 Joint Ventures:
 
 A.V. Cell Inc., Canada
 
 A.V. Nackawic Inc., Canada
 
 Birla Jingwei Fibres Company Limited
 
 Birla Lao Pulp & Plantations Company Limited
 
 Bhaskarpara Coal Company Limited;
 
 Madanpur (North) Coal Company (Private) Limited; and
 
 Bhubaneswari Coal Mining Limited
 
 Associates:
 
 Aditya Birla Science & Technology Company Limited
 
 Idea Cellular Limited
 
 Key Management Personnel:
 
 Shri Shailendra K. Jain, Whole-Time Director
 
 (upto 31st March, 2010)
 
 Relatives of Shri Shailendra K. Jain:
 
 - Smt. Niharika Jain, Wife
 
 - Shri Suvvrat Jain, Son
 
 - Shri Devavrat Jain, Son
 
 Shri Adesh Gupta, Whole-Time Director and Manager (w.e.f. 3rd October,
 2009) Relative of Shri Adesh Gupta:
 
 - Smt. Usha Gupta, Wife
 
 Shri K.K. Maheshwari, Whole-Time Director
 
 (w.e.f. 20th May, 2010)
 
 Shri D.D. Rathi, Whole-Time Director
 
 (upto 31st May, 2009)
 
 Enterprise where significant influence exists:
 
 - Vishal Industries and Chemicals Private Limited
 
 11.  Previous year’s figures have been regrouped and rearranged
 wherever necessary to conform to this year’s classification.
 
 12.  Additional information required under Part II of Schedule VI to
 the Companies Act, 1956, is as per Schedule 23.