1. Consolidated Results have been prepared in accordance with Accounting Standard on Consolidated Financial Statements (AS-21), Accounting Standard on Accounting for Investments in Associates (AS-23) and Accounting Standard on Financial Reporting of Interest in Joint Ventures (AS-27) issued by the Institute of Chartered Accountants of India (ICAI).

2. Segments have been identified in line with the Accounting Standard on Segment Reporting (AS-17), taking into account the organisational structure as well as differential risks and return of these segments. Details of products included in each of the segments are as under :

Fibre & Pulp - Viscose Staple Fibre & Wood Pulp
Cement - Grey & White Cement
Sponge Iron - Sponge Iron
Chemicals - Caustic Soda & Allied Chemicals
Textiles - Fabric & Yarn (Refer note 6 below)
Others - Mainly Telecom upto December 31, 2008 (Refer note 7 below)

3. Pursuant to the Framework Agreement dated June 10, 2008 between the Company and Welspun Power and Steel Ltd. {Welspun), a Scheme of Arrangement u/s 391-394 of the Companies Act, 1956 is under implementation for transfer of Sponge Iron Unit of the Company on a ´going concern´ basis for a consideration of Rs 1030 Crs. to Vikram Sponge Iron Ltd. (VSIL), a subsidiary of the Company, incorporated during the current year. In Terms of the subject Agreement, the consideration payable by VSIL to the company shall be funded by way of infusion of funds into VSIL by Welspun through a combination of equity and debts. Pursuant to such funding by Welspun and upon the Scheme becoming effective, Welspun will own substantial majority stake in VSIL.

The Scheme has been sanctioned by Hon’ble High Court of Madhya Pradesh, Indore Bench vide its order dated April 29, 2009. Necessary steps are being taken for making the above Scheme effective. The transaction is expected to be completed by June 2009.

4. During the quarter following capacities were commissioned -

(a) 3.3 Mn TPA capacity clinkerisation plant and 23 MW Thermal Power Plant, at Kotputli (Rajasthan).
(b) 1.6 Mn TPA capacity Cement Mill and 25 MW Thermal Power Plant, at Aditya Cement, Shambhupura (Rajasthan). With the commissioning of the aforesaid capacities, the total Cement capacity has increased to 19.65 MnTPA.

5. The company has revised estimated useful life of some of the assets, on account of which depreciation is higher by Rs 6.34 Crs for three months ended March 31, 2009 and by Rs 24.06 Crs for year ended March 31, 2009.

6. The standalone financial results of the company for three months/ year ended March 31, 2009 do not include the financial results of the erstwhile textile units at Bhiwani, as the same were transferred to Grasim Bhiwani Textiles Ltd. (GBTL). a subsidiary of the company, w.e.f. October 01, 2007. The impact of the same on the company´s standalone financial results for the year ended March 31, 2009 is not material.

7. Pursuant to an MoU signed by Promoting Companies of Idea Cellular Ltd. (Idea), the Company´s share in net profit of Idea for the three months ended March 31, 2009 has been consolidated as per equity method of accounting in accordance with Accounting Standard on Accounting for Investments in Associates (AS-23). The financial results of Idea were consolidated as Joint Venture till December 31, 2008.

8. The consolidated financial results of the company for three months/year ended March 31, 2009 do not include the financial results of Shree Digvijay Cement Company Ltd. (SDCCL), as it ceased to be a subsidiary of the company w.e.f. March 25, 2008. The company´s consolidated net profit for the corresponding three months / year ended March 31, 2008 is after considering net loss of SDCCL Rs. 21.52 Crs and Rs.7.37 Crs respectively.

9. The Board of Directors has recommended a dividend of Rs.30 per share.

10. Previous period´s figures have been regrouped / rearranged wherever necessary to conform to the current period´s classification.

11. The above results have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at the meeting held on May 19, 2009.

D D Rathi
Whole-time Director