ACC Annual Report 2009

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We have learnt to take our core values seriously. Living our

values means displaying them in everything we do.

Creating assurance in the brand ACC by consistently

delivering on our promises through services and

behaviour towards all stakeholders. Giving our people

pride, helping them see the bigger picture and

understanding their impact on the Company’s success.

Being accountable. By utilising financial resources in the

most efficient way we can. Being customer oriented

which means winning in the market place

through customer insight.

Demonstrating respect for the

environment and for society and

by displaying responsibility

and interdependence with the

community we live in.

Strength Building strong and lasting relationships. Conducting

everyday operations internally in true team spirit.

Acting responsibly with integrity and demonstrating

strength of character.

PerformanceDelivering on our promises to each other and to our

stakeholders. Always ensuring excellence. Working

together and striving to delight customers with

best solutions.

PassionCaring, being dedicated, committed and passionate

about everything we do, demonstrating excellence

in everything we do.

Our VisionTo be one of the most respected companies in India; recognised forchallenging conventions and delivering on our promises.

Our Values

ACC pgs 6 Mar_10 1pm27:Layout 1 3/6/2010 3:58 PM Page 1

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STRENGTH

A solid partnerIntegrity and strength of character of our peopleA strong organization backed with global leadershipand competence


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The brand ACC enjoys a high level of equity in the Indianmarket. ACC’s brand equity was found to be the strongestamong its key competitors as shown in a research studyundertaken by The Nielsen Company (India) during 2007and 2008. A humbling revelation of this study is that thisbrand enjoys among the highest level of equity in the globalcement market. ACC is a brand with meaning not just tocustomers but to other stakeholders such as shareholders,employees and vendors. The name invokes an assurance ofquality and trust.

The Company now plans to further enhance this equity andstrengthen its sales and marketing potential by building aneffective sales organization, motivating channel partnersand revitalising customer services.

The People’s Brand


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ACC promotes the use of Blended cements which areenvironment-friendly and acknowledged for their superiorand unmatched durability as compared to ordinarycements.

Mega construction projects obtain cement from ACCdelivered in bulk tankers – a welcome change from theconventional cement bag.

ACC was first to introduce Ready Mixed Concrete in India ona commercial basis. Thanks to this achievement, a transitconcrete mixer is now a familiar sight in India’s major cities.

As India’s economic development accelerates, ACC cementand concrete stand ready to enable the constructionindustry to achieve speedy completion of large commercialand infrastructure projects.

Products - Assuring Quality & Trust

ACC’s brand name is synonymous with cement and concrete.The trademark ACC on 50 kilogram bags of Ordinary PortlandCements (43 and 53 grade), Blended cements (Fly ash and slagbased) and some special purpose cements offers customers anassurance of dependable and consistent quality.


The Company recognizes that a motivated, responsive andaccountable human resource team is critical in enabling it to fulfil its long term agenda for growth andcompetitiveness. A clearly defined HR strategy endeavoursto ensure that the right people are in the right place doingthe right jobs in the right way – through a well devisedperformance management system, through carefullyplanned training and career development programmes andthrough need-based recruitment. An important ingredientof the plan is to motivate employees by improving thequality of life, addressing compensation issues, providingregular feedback and open internal communication such asthrough the newly re-launched intranet portal Accelerate.

The Ultimate Resource

“The true index to a Company's greatness is not only its turnover, not only its quantum of profits, but its human resource - The Ultimate Resource… backed by a loyal and dedicated workforce - your Company has proved itself an expert in the management of change. Its success will be judged not merely by the market value of its shares, but by the pride of place your Company occupies in the hearts and minds of the people it seeks to serve.”

-- Nani A Palkhivala at ACC’s 56th Annual General Meeting 1992

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Manufacturing Excellence

We strive to retain our position as India's foremostmanufacturer of cement and concrete with a countrywidebouquet of 16 modern cement factories that have acapacity of 26 million tonnes per annum, to be increased to30 million tonnes by the end of this year.

Captive power plants play a vital role in providing cost-efficient and effective supply of quality power to our plants.Our cement plants now meet 70% of their total powerrequirements through captive generation.

We have initiated steps to usher in excellence in ourmanufacturing and mining operations by continuouslyupgrading technology and processes and through trainingand development of the plant team to inculcate andsustain a lean manufacturing approach. Safety is givenparamount importance. Effort is taken to engage with ourdedicated and skilled workforce so as to keep themmotivated and involved in efficient plant operations andproductivity improvement.

Our manufacturing units are backed by a centraltechnology support services centre in Thane near Mumbaiwhich encourages sharing of technical know-how andexpertise to be abreast of global benchmarks.


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Our Supply Chain

ACC is proud of its large supply chain managed by anenergetic sales force from an extensive spread of salesoffices spanning India, a country-wide network of highlymotivated channel partners comprising more than 9000dedicated dealers complemented by a chain of retailers.They are supplied ACC cement by rail and road from ourcement plants supported by efficient authorised roadtransport contractors who assure express delivery.Warehouses in intermediary locations ensure uninterruptedsupply to remotely located customers.

ACC Concrete has more than 40 Ready Mixed Concreteplants in the major cities of India which supply freshconcrete to our customers’ doorsteps through our own fleetof transit mixers. Our Bulk Cement terminal at Kalamboli,near Mumbai caters to the requirements of Mumbai and itsenvirons, through its own dedicated fleet of bulkers and sitestorage facilities.

The challenge before our supply chain is to ensureuninterrupted supply of high quality cement and concretebacked by efficient logistics and transportation.


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Delivering on our promises to each other and to our stakeholders Best solutions for our customersDemanding excellenceOpen and always searching for new and better waysBest results from working together

PERFORMANCE


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ACC Help - to build with confidence

ACC is essentially a people’s brand of cement and itscustomer base represents the masses of India - individualhomebuilders in small towns, rural and semi-urban India.Customer services are an important differentiator.

ACC Help services cater to the retail buyer offering notmerely guidance about the correct application of cementbut also knowledge about the entire process of homebuilding. ACC Help reaches out to customers, home buildersand engineers all over India in different ways.

ACC Help Centres: For personal guidance on the rightconstruction practices.

ACC Help Literature: Easy-to-understand constructionguides.

ACC Help Mobile Vans: Our engineers on the move in vansassist customers at site.

www.acchelp.in: An interactive website for constructionrelated questions.

ACC Helpline: A 24 hour service to provide instant advice.

Indian Concrete Journal: The country’s oldest civilengineering journal.


Performance Highlights

10

13.0

6.8

18.9

8.1

20.021.0

21.5

2005 2006 2007

5.9

2008

5.2

2009

2.3

25.0

20.0

15.0

10.0

5.0

0.0

20.0

17.0

14.0

11.0

8.0

5.0

2.0

-1.0

Sales Volume & Growth %

Mill

ion

To

nn

es

Volume Million Tonnes Growth (%)

Gro

wth

(%

)

Net Sales, Operating EBITDA &

Operating EBITDA Margin

Rs.

Cro

reNet Sales Op. EBITDA Margin

Op

. EB

ITD

A M

arg

in (

%)

0

3221

2005

616

2006

5803

1717

2007

6991

1993

2008

7283

1899

2009

8027

2643

19

30

26

33

Op. EBITDA

9000

8000

7000

6000

5000

4000

2000

3000

1000

0

40

35

30

25

20

15

10

5

29

Profit Before Tax & Profit AfterTax

Rs.

Cro

re

PBT Rs. Crore PAT Rs. Crore

684

2005

544

2006

1620

1232

2007

1930

1439

2008

1737

1213

2009

2294

1607

2400

2200

2000

1800

1600

1400

1200

1000

800

600

400

200

Capital Employed &Return on Capital Employed

Rs. C

rore

2005 2006 2007 2008 2009

Capital Employed ROCE

3502

0

42344791

5746

6932

Ret

urn

on

Cap

ital

Em

ploy

ed (%

)

7500 75

65

55

45

35

25

15

600065007000

5500500045004000350030002500200015001000

500

19

41 4240

49

5

Net Worth & Return on Net Worth

Ne

t W

ort

h (

Rs.

Cro

re)

2005 2006 2007 2008 2009

Net Worth RONW

500 15

2130

3142

4153

4928

34

39

35

2527

Re

turn

on

Ne

t W

ort

h (

%)

6500 50

45

40

35

30

25

20

6000

5000

5500

4500

4000

3000

3500

2500

2000

1000

1500

Net Worth & Return on Net Worth

Ne

t W

ort

h (

Rs.

Cro

re)

2005 2006 2007 2008 2009

Net Worth RONW

500 15

2130

3142

4153

4928

6016

34

39

35

2527

Re

turn

on

Ne

t W

ort

h (

%)

6500 50

45

40

35

30

25

20

6000

5000

5500

4500

4000

3000

3500

2500

2000

1000

1500

Note: Figures for 2005 pertain to the nine months period April 2005 - December 2005.


11

Net Cash Generated from Operations

2005 2006 2007 2008 2009

644

1422

2023

1708

2398

Rs.

Cro

re

2600

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

2400

Fixed Assets & Asset Turnover Ratio

Rs. C

rore

2005 2006 2007 2008 2009

Fixed Asset Rs Crore Asset Turnover Ratio

Ass

et T

urn

over

Rat

io

7000

6000

5000

4000

3000

2000

1000

0

1.5

31223481

3964

5073

6315

2.0 2.1 2.11.9

3.0

2.5

2.0

1.5

1.0

0.5

Employees at year end & Turnover Per employee

No

. of

Em

plo

yee

2005 2006 2007 2008 2009

Number Turnover per Employee

10900

10400

9900

9400

8900

8400

91709231

10032

9557

8916

0.35

0.63

0.73 0.740.87

1.50

1.30

1.10

0.90

0.70

0.50

0.30

0.10

-0.10

Rs.

Cro

re

Cement Production & Capacity Utilisation

Mill

ion

To

nn

es

Cement Production Utilisation (%)

25.0

20.0

15.0

10.0

5.0

02005

12.9

2006

18.7

2007

19.9

2008

20.8

2009

21.4

93

9091

9391

110

105

100

95

90

85

80

Ca

pa

city

Uti

lisa

tio

n (

%)

* Dividend Per Share (DPS) does not include Dividend Distribution Tax. ** Dividend Payout Ratio is calculated considering Dividend Distribution Tax.

90

80

70

60

50

40

30

20

10

0

Dividend Per Share* Earning Per Share and Dividend Payout Ratio**

Rs. C

rore

2005 2006 2007 2008 2009

41

36

31

26

21

16

11

6

1

EPS Dividend Payout Ratio %DPS*

Div

iden

d Pa

you

t Ra

tio

(%)

Rs. P

er S

har

e

30

8

66

15

77

20

65

20

86

23

31 31

36

3126


Profit Before Tax& Exceptional ItemsRs. 2294 Crore(28%)

Raw MaterialRs. 892 Crore(11%)

Power & FuelRs. 1540 Crore(19%)

Interest & FinanceRs. 84 Crore(1%)

DepreciationRs. 342 Crore(4%)

Manufacturing &Other costsRs. 3116 Crore(37%)

2009

Profit Before Tax &Exceptional ItemsRs. 1688 Crore(22%)

Raw MaterialRs. 799 Crore(11%)

Power & FuelRs. 1599 Crore(21%)

Interest & FinanceRs. 40 Crore(1%)

DepreciationRs. 294 Crore(4%)

Manufacturing &Other costsRs. 3152 Crore(41%)

2008

12

Cost and Profit as a Percentage of Sales


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The year began well with ACC receiving the Jamnalal BajajUchit Vyavahar Puraskar for 2008 from the Council for FairBusiness Practices for practicing and promoting fairbusiness practices.

The Institute of Chartered Accountants of India (ICAI)conferred on ACC its Gold Shield for being best in the ‘ICAIAwards for Excellence in Financial Reporting for 2008’ underthe Category ‘Manufacturing and Trading Enterprises’. Theaward signifies that the accounting policies followed by theenterprise are adjudged the best amongst the enterprisesthat participated in the competition on the basis ofcompliance with accounting standards, statutoryguidelines and other relevant pronouncements.

There were other accolades, equally cherished andrewarding, for achievements in safety, energy conservation,mines safety and environment management.

Honours & Felicitations

Indian Merchants’ Chamber Ramakrishna Bajaj National Quality Trophy 2009 (Manufacturing category) to ACC Gagal Indian Merchants’ Chamber

Ramakrishna Bajaj National Quality Commendation Certificate 2009 (Manufacturing category) to ACC Sindri 8th Greentech Safety Award 2009 in

Gold category in cement sector by Greent ech Foundation to ACC Tikaria 10th Greentech Environment Excellence award, Gold category in cement

sector to ACC Tikaria 8th Greentech Safety Gold Award in cement sector to ACC Jamul Srishti Good Green Governance Award by Srishti Publications

to ACC Madukkarai International Safety Award 2008 by British Safety Council to ACC Gagal, Sindri and Tikaria State Safety Award for 2007 from

Government of Orissa to ACC Bargarh Federation of Indian Mineral Industries (FIMI) National Environment Award to ACC Wadi Limestone Mines

Safety Innovation Award 2009 by Institution of Engineers to ACC Wadi (Expansion Project) National Award for Excellence in Water Management

from Confederation of Indian Industry (CII) to ACC Wadi Energy Conservation Award by Rajasthan Renewable Energy Corporation to ACC Lakheri


Building Testimonials

Many of the country’s iconic structures that symbolizeIndia’s progress have used ACC cement. Thus ACCparticipates, in a small but meaningful way, in the process of Nation Building through the supply of cement and concrete to mega structures that are proud testaments standing the test of time. From thelegendary Bhakra Nangal dam and Mumbai’s Marine Drive to new age marvels such as the Delhi Metro,Bengaluru International Airport and others that reflectcontemporary engineering excellence of ACC cement andReady Mixed Concrete.

We are even more proud of the simple residential andcommercial structures built to accommodate everydayutilities in our smaller towns and rural areas including small but precious dream homes built with our cement tohouse India’s common man. We add to this list every day. It is this segment where ACC competes and wins over other brands.

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PASSION

Dedication and commitment - we care about everything we do.We care about our people, their safety and their development. We care about our customers and their success. We care about our world, in particular the communities we live and work in.We take pride in performing well and recognize and celebrate success.


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Sustainable Development

We believe in the Triple Bottom Line approach. Measuringour progress against this framework means balancing thepursuit of our economic prosperity together withmaximising our contribution to the wellbeing andpreservation of the planet and its people.

Our basic objectives are conservation of mineral and energy resources, stricter environment management andpromoting greener technologies. We have specific plans toreduce CO2 emissions through means such as upgradingour pollution control technology, usage of alternative fuelsand raw materials and increasing the absorption ofmaterials like fly ash and slag which reduce the clinkerfactor. Wind energy farms demonstrate our resolve toadvance the use of renewable energy.

Accepting the interdependence of all sections of society,our key consideration is focused on the community aroundour cement plants. We engage with these people throughour own personnel and with advisory panels comprisingrepresentatives from the community with a view toimprove the quality of their daily lives and to encourageopportunities that build skills and generate livelihoods.

Our Public Private Partnerships to upgrade Government runIndustrial Training Institutes (ITI) continue to be a thrustarea with the objective of improving the quality of trainingleading to better employability of the ITI trainees.


BOARD OF DIRECTORS(As on February 4, 2010)

Mr N S SekhsariaChairman

Mr Paul HugentoblerDeputy Chairman

Mr Sumit BanerjeeManaging Director

Mr S M Palia

Mr Naresh Chandra

Mr Markus Akermann

Mr M L Narula

Mr D K Mehrotra

Mr R A Shah

Mr Shailesh Haribhakti

Mr Kuldip Kaura

AUDIT COMMITTEE

Mr Shailesh Haribhakti, Chairman

Mr S M Palia

Mr Naresh Chandra

Mr Paul Hugentobler

SHAREHOLDERS’/INVESTORS’GRIEVANCE COMMITTEE

Mr Paul Hugentobler, Chairman

Mr M L Narula

Mr Sumit Banerjee

COMPENSATION COMMITTEE

Mr N S Sekhsaria, Chairman

Mr Paul Hugentobler


COMPLIANCE COMMITTEE

Mr R A Shah, Chairman

Mr Naresh Chandra


Mr Paul Hugentobler

Mr Sumit Banerjee

MANAGING COMMITTEE

Mr Sumit Banerjee

Mr Ramit Budhraja

Mr Rajiv Prasad

Mr Vivek Chawla

Mr T N Tiwari

Mr Sunil Nayak

Mr J DattaGupta

Mr Anand Shukla

Mr Ravinder Mohan

Mr Shakti Arora

COMPANY SECRETARY

Mr Burjor D Nariman

AUDITOR

S R Batliboi & Associates

COST AUDITOR

N I Mehta & Company

BANKERS

State Bank of India

Bank of Baroda

Bank of India

Central Bank of India

Canara Bank

State Bank of Hyderabad

State Bank of Bikaner & Jaipur

Standard Chartered Bank

Bank of America

Citibank, N.A.

The Hongkong & ShanghaiBanking Corporation Limited

Industrial Development Bank of India Ltd

HDFC Bank Limited

ICICI Bank Limited

REGISTERED OFFICE

Cement House121 Maharshi Karve RoadMumbai 400 020Website: www.acclimited.com

CONTENTS

Introductory Profile........................... 1-16

Performance Highlights .............. 10-12

Notice ............................................17-20

Directors’ Report and MDA .........21-31

Annexures to Directors’ Report... 32-38

Corporate Governance ............ 39-63

Financial Analysis/Highlights....... 64-70

Auditor’s Report .........................71-73

Balance Sheet .....................................74

Profit and Loss Account .........................75Cash Flow Statement ......................76

Schedules – 1 to 18 ..........................................77-105

Balance Sheet Abstract andCompany’s General

Business Profile ............................106

Statement under Section 212 ....................................107

Consolidated Financial Statements ...........................108-136

Accounts –

Subsidiary Companies

ACC Concrete Limited ................137-152

ACC Mineral Resources

Limited ...................................153-162

Bulk Cement Corporation

(India) Limited .......................163-173

Lucky Minmat Limited ...............174-187

National Limestone

Company Private Limited ..........188-199

ANNUAL GENERAL MEETING

On Thursday, April 8, 2010 at 3.00 p.m.at Birla Matushri Sabhagar 19, Sir Vithaldas Thackersey MargMumbai 400 020

Members are requested to kindly bring their copies of the Annual Report to the Meeting.

17

NOTICE

NONONONONOTTTTTICICICICICE IS HE IS HE IS HE IS HE IS HEREREREREREBEBEBEBEBY GIVEN Y GIVEN Y GIVEN Y GIVEN Y GIVEN TTTTTHAHAHAHAHAT T T T T TTTTTHHHHHE SEE SEE SEE SEE SEVENTYVENTYVENTYVENTYVENTY-FOU-FOU-FOU-FOU-FOURRRRRTTTTTHHHHHANANANANANNNNNNUUUUUAL GENAL GENAL GENAL GENAL GENERERERERERAL MEETAL MEETAL MEETAL MEETAL MEETIIIIING OF ANG OF ANG OF ANG OF ANG OF ACCCCCC LIMITC LIMITC LIMITC LIMITC LIMITED ED ED ED ED will beheld at Birla Matushri Sabhagar, 19, Sir VithaldasThackersey Marg, Mumbai 400020 on Thursday,April 8, 2010 at 3.00 p.m. to transact the followingbusiness:-

ORORORORORDIDIDIDIDINARNARNARNARNARY BUSIY BUSIY BUSIY BUSIY BUSINNNNNESSESSESSESSESS

1. To receive and adopt the Audited Profit and LossAccount for the financial year ended December 31,2009, the Balance Sheet as at that date and theReport of the Directors and Auditors thereon.

2. To declare a dividend.

3. To appoint a Director in place of Mr. S. M. Palia, whoretires by rotation and is eligible for reappointment.

4. To appoint a Director in place of Mr. Naresh Chandra,who retires by rotation and is eligible forreappointment.

5. To appoint a Director in place of Mr. ShaileshHaribhakti, who retires by rotation and is eligiblefor reappointment.

6. To appoint Messrs. S R Batliboi & Associates,Chartered Accountants, as Auditors of the Companyon such remuneration as agreed upon by the Boardof Directors and the Auditors, in addition toreimbursement of service tax and all out of pocketexpenses incurred in connection with the audit ofthe Accounts of the Company for the year endingDecember 31, 2010.

SPECSPECSPECSPECSPECIAL BUSIIAL BUSIIAL BUSIIAL BUSIIAL BUSINNNNNESSESSESSESSESS

7. To appoint a Director in place of Mr. Kuldip Kaurawho was appointed a Director of the Company witheffect from October 28, 2009 in the casual vacancyon the Board caused by the resignation of Ms.Shikha Sharma and who holds office up to the dateof the forthcoming Annual General Meeting of theCompany under Section 262 of the Companies Act,1956, but who is eligible for appointment and inrespect of whom the Company has received a noticein writing under the provisions of Section 257 ofthe Companies Act, 1956 from a Member proposinghis candidature for the office of Director.

8. To consider and, if thought fit, to pass with orwithout modification, the following Resolution as aSpecial Resolution:-

“RESOLVED THAT in accordance with the provisionsof Sections 198, 309(4) and all other applicableprovisions, if any, of the Companies Act, 1956 orany statutory modification(s) or re-enactmentthereof, the Articles of Association of the Companyand subject to all applicable approval(s) as may berequired, the consent of the Company be and ishereby accorded to the payment of commission fora period of five years commencing from 1st January2010, to the Non-Executive Directors of theCompany as may be decided by the Board from timeto time provided that the total commission payableto the Non-Executive Directors per annum shall notexceed one percent of the net profits of theCompany for that year as computed in the mannerreferred to under Section 198(1) of the CompaniesAct, 1956, with authority to the Board to determinethe manner and proportion in which the amountbe distributed among the Non-Executive Directors.”

Notes:Notes:Notes:Notes:Notes:

a. A MEMBER ENTITLED TO ATTEND AND VOTE AT THEMEETING IS ENTITLED TO APPOINT A PROXY TOATTEND AND VOTE INSTEAD OF HIMSELF AND APROXY NEED NOT BE A MEMBER.

b. The Register of Members and Share Transfer Booksof the Company shall remain closed fromMarch 26, 2010 to April 8, 2010, both days inclusive.

c. The Dividend, after declaration, will be paid to thoseMembers of the Company whose names stand onthe Register of Members on April 8, 2010. Thedividend in respect of shares held in dematerializedform in the Depository System, will be paid to thebeneficial owners of shares as on March 25, 2010,as per the list provided by the Depositories for thispurpose. The dividend will be payable on and fromApril 13, 2010.

d. The Securities and Exchange Board of India (SEBI)has made it mandatory for all companies to use

18

the bank account details furnished by thedepositories for depositing dividends. As per therecent RBI guidelines, effective from September 30,2009, ECS credit will be moved completely on tothe National Electronic Clearance System (NECS)platform, through the core banking system.Accordingly, dividend will be credited to theMembers’ bank account through NECS, wherevercomplete core banking details are available with theCompany. In the event, any branch of a bank hasnot migrated to the core banking system, or wherethe core banking account number is not furnishedby the Members to its Depository Participantwherever shares are held in electronic form or tothe Company in case of physical shareholding, theCompany will print the details available in its recordson the dividend warrants to be issued to theMembers. The Company is in compliance with SEBI’sdirective in this regard.

e. During the current financial year 2010, the Companywill be required to transfer to the Investor Education& Protection Fund, the unpaid/unclaimed dividendfor the year ended March 31, 2003. Those Memberswho have not encashed their warrants arerequested to immediately return the outdated

warrants to the Company or to write to theCompany in the matter to enable the Company toissue demand drafts in lieu thereof.

f. The relative Explanatory Statement pursuant toSection 173 of the Companies Act, 1956, in respectof the business under Items 7 & 8 as set out above,is annexed hereto.

g. As per the provisions of the Companies Act, 1956,facility for making nominations is available toMembers in respect of the shares held by them.Nomination forms can be obtained from the ShareDepartment of the Company.

By Order of the Board of Directors,For ACC Limited

B. D. NarimanCompany Secretary &

Head – Compliance

Mumbai, February 4, 2010

Registered Office:“Cement House”,121, Maharshi Karve Road,Mumbai 400 020

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EXPLANATORY STATEMENT

The following Explanatory Statement, as required bySection 173 of the Companies Act, 1956, sets out allmaterial facts relating to the business under Items7 & 8 mentioned in the accompanying Notice datedFebruary 4, 2010.

2. Item No 7:Item No 7:Item No 7:Item No 7:Item No 7: The Board of Directors has appointedMr. Kuldip Kaura as a Director of the Company witheffect from October 28, 2009, in the casual vacancycaused by the resignation of Ms. Shikha Sharma.

3. Mr. Kuldip Kaura holds a degree in MechanicalEngineering, BE (Hons.) from Birla Institute ofTechnology & Science, Pilani, and had alsoattended various Executive EducationProgrammes at London Business School andSwedish Institute of Management, Stockholm. Mr.Kaura has rich experience in leading businessesand companies in diverse sectors such as power,natural resources, metals, mining etc. and has adeep understanding of Corporate Governance,Brand Building and Sustainable Development inIndia, U.K. and U.S. regulatory environment. He ispresently Advisor with Vedanta Resources Plc.

4. Under Section 262 of the Companies Act, 1956,Mr. Kuldip Kaura holds office as Director till thedate up to which Ms. Shikha Sharma, in whoseplace he has been appointed would haveotherwise held office viz. till the date of theforthcoming Annual General Meeting of theCompany. In view of Mr. Kuldip Kaura’squalifications, his expertise and valuableexperience, his appointment on the Board is inthe interests of the Company.

5. A Notice under Section 257 of the Companies Act,1956, has been received from a Member signifyinghis intention to propose the appointment of Mr.Kuldip Kaura as Director of the Company.

6. The Board commends the above appointment andthe relevant Resolution at Item 7 of theaccompanying Notice.

7. Mr. Kuldip Kaura is interested in the Resolutionset out at Item 7 of the accompanying Notice,since it relates to his appointment.

8. Item No 8Item No 8Item No 8Item No 8Item No 8: Pursuant to the provisions of Section309(4) of the Companies Act, 1956, the Membersof the Company at the Seventieth Annual General

Meeting held on April 12, 2006, had approved thepayment of commission to the Non-ExecutiveDirectors of the Company for a period of five yearswith effect from 1st January, 2006. As per Section309(7) of the said Act, the approval of theMembers for the payment of commission to theNon-Executive Directors is in force for a period offive years i.e. upto December 31, 2010.

9. Taking into consideration the current competitivebusiness environment, stringent accountingstandards and corporate governance norms whichrequire considerably enhanced levels of decisionmaking and vigilant corporate governance,thereby making the responsibilities of theDirectors more onerous, it is proposed to continuethe payment of commission to the Non-ExecutiveDirectors of the Company. The Board of Directorswill determine each year, the specific amount tobe paid as commission to the Non-ExecutiveDirectors which shall not exceed 1% of the netprofits of the Company for that year, as computedin the manner referred to in Section 198(1) of theCompanies Act, 1956.

10. The Members are requested to approve thepayment of commission to the Non-ExecutiveDirectors of the Company for a further period offive years with effect from January 1, 2011. Thepayment of commission would be in addition tothe sitting fees payable for attending Board/Committee Meetings.

All the Non-Executive Directors of the Companyare interested in the Resolution set out at ItemNo. 8 of the accompanying Notice since it relatesto their respective remuneration.

By Order of the Board of Directors,For ACC Limited

B. D. NarimanCompany Secretary &

Head – Compliance


Registered Office:“Cement House”,121, Maharshi Karve Road,Mumbai 400 020

20

AnneAnneAnneAnneAnnexxxxxururururure to Items 3 to 5 & 7 of the Noticee to Items 3 to 5 & 7 of the Noticee to Items 3 to 5 & 7 of the Noticee to Items 3 to 5 & 7 of the Noticee to Items 3 to 5 & 7 of the Notice

Details of DirDetails of DirDetails of DirDetails of DirDetails of Dirececececectors seeking appointors seeking appointors seeking appointors seeking appointors seeking appointmentmentmentmentmenttttt / r / r / r / r / reappoineappoineappoineappoineappointmentmentmentmentmenttttt a a a a attttt the f the f the f the f the forororororthcthcthcthcthcoming Annual Generoming Annual Generoming Annual Generoming Annual Generoming Annual General Meetingal Meetingal Meetingal Meetingal Meeting(in pursuance of Clause 49 of the Listing A(in pursuance of Clause 49 of the Listing A(in pursuance of Clause 49 of the Listing A(in pursuance of Clause 49 of the Listing A(in pursuance of Clause 49 of the Listing Agrgrgrgrgreemeneemeneemeneemeneement)t)t)t)t)

Name of theName of theName of theName of theName of theDirDirDirDirDirececececectortortortortor

Date of Birth

Nationality

Date of Appointment onBoard

Qualification

Shareholding in ACC

List of Directorships held inother Companies

MrMrMrMrMr. S. S. S. S. S. M. P. M. P. M. P. M. P. M. Paliaaliaaliaaliaalia

April 25, 1938

Indian

25.01.2002

B.Com.; L.L.B.; CAIIB;CIIB (London)

NIL

Tata Steel Ltd.;Gruh Finance Ltd.;Saline Area VitalisationEnterprises Ltd.;Tata Motors Ltd.;AI Champdany IndustriesLtd.;The Bombay Dyeing &Mfg. Co. Ltd.

MrMrMrMrMr. Nar. Nar. Nar. Nar. Naresh Chandresh Chandresh Chandresh Chandresh Chandraaaaa

August 1, 1934

Indian

05.05.2004

Post Graduate inMathematics fromAllahabad University;Member - IndianAdministrative Services

NIL

Hindustan Motors Ltd.;Bajaj Auto Ltd.;Balrampur Chinni MillsLtd.;Electrosteel Casting Ltd.;AVTEC Limited;Cairn India Ltd.;Gammon InfrastructureProjects Limited;Bajaj Finserv Limited;Bajaj Finance HoldingsLimited;Ambuja CementsLimited;EROS InternationalMedia Ltd.;Linde Engineering IndiaPvt. Ltd.;Vis Legis Consult Pvt.Ltd.;G-4S Corporate Services(India) Pvt. Ltd.;Emerging Ventures IndiaPvt. Ltd.;Vedanta Resources, Plc(U.K.);International CrisisGroup, Brussels(Belgium);Eros International Plc.(U.K.)

MrMrMrMrMr. Shailesh Haribhakti. Shailesh Haribhakti. Shailesh Haribhakti. Shailesh Haribhakti. Shailesh Haribhakti

March 12, 1956

Indian

17.02.2006

FCA; FICWA

100

Pantaloon Retail (India)Ltd.;Future Capital HoldingsLimited;Hexaware TechnologiesLimited;Akruti City Limited;Ambuja CementsLimited;Mahindra LifespaceDevelopers Limited;Blue Star Limited;The Dhanalakshmi BankLimited;J K Paper Limited;Kotak MahindraTrusteeship ServicesLimited;Hercules Hoists Limited;Everest Kanto CylinderLimited;Raymond Limited;Morarjee Textiles Limited(Alternate Director);Fortune FinancialServices (India) Ltd.,(Alternate Director);BDO Consulting PrivateLimited;Advantage Moti IndiaPrivate Limited;Quadrum SolutionsPrivate Limited;J M Financial AssetReconstruction Co.Private Limited;Milestone EcofirstAdvisory Services (India)Private Limited.

MrMrMrMrMr. K. K. K. K. Kuldip Kuldip Kuldip Kuldip Kuldip Kauraurauraurauraaaaa

April 5, 1947

Indian

28.10.2009

Bachelor of Engineeringin Mechanical Engineer-ing (Honours) from BirlaInstitute of Technology& Science, (Pilani);Continuous ExecutiveEducation includingintervention at LondonBusiness School &Swedish Institute ofManagement, Stockholmand other reputableinstitutes

NIL

Sesa Goa Limited

21

DIRECTORS’ REPORT & MANAGEMENT DISCUSSION AND ANALYSIS

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFAAAAACCCCCC LIMITC LIMITC LIMITC LIMITC LIMITEDEDEDEDED

The Directors hereby present the Seventy Fourth Annual

Report together with the audited accounts, for the year

ended December 31, 2009. The Management Discussion

and Analysis has also been incorporated into this report.

1.1.1.1.1. PRPRPRPRPREEEEEAAAAAMBMBMBMBMBLE - 2009LE - 2009LE - 2009LE - 2009LE - 2009

The year 2009 would be marked as an important

year for the Indian cement industry. When the year

began, the Indian economy was in a recession

amidst the global slowdown that was still

prevailing. The cement industry then faced the

prospects of a substantial cement capacity addition

with no sign that demand would grow significantly.

However, the forecasts were belied - demand was

robust, capacity creation was delayed, cement plants

achieved higher capacity utilization and market

prices were favourable. With commodity prices

including fuel remaining subdued, most cement

manufacturers were able to record good financial

performances in 2009.

The cement industry posted a steady growth of

about 10.3% during the year under review. Overall

cement despatches in 2009 were approximately 195

million tonnes, up from 177 million tonnes in 2008.

Growth was registered across all regions, led by

rapid developments in infrastructure and a stable

housing sector. The demand-supply scenario was

generally at balance with high levels of capacity

utilization in most of the regions. In 2009, capacity

additions of the order of 26.88 million tonnes went

on stream. There was some delay in the

materialization of fresh capacity addition which

helped ease the pressure on selling prices. The

industry’s cost profile improved on account of lower

procurement prices of coal and other commodities.

All of the above conditions had a favourable

collective impact on overall profitability.

ACC’s installed capacity rose to 26 million tonnes

per annum at the close of the year as compared to

23 million tonnes at the end of 2008. The Company

continued with its strict control over costs, while

taking proactive measures to conserve cash

resources which are reflected in the fact that the

Company has negative net financial debt even after

spending Rs. 1561 crores as capital expenditure.

2.2.2.2.2. HHHHHIGHIGHIGHIGHIGHLIGHTLIGHTLIGHTLIGHTLIGHTS OF PERS OF PERS OF PERS OF PERS OF PERFORMFORMFORMFORMFORMANCANCANCANCANCE/EE/EE/EE/EE/EVENTVENTVENTVENTVENTSSSSS

• Total consolidated income for the year 2009 was

Rs. 8,725 crore, an increase of 9% as compared

to Rs. 7,974 crore in 2008.

• Consolidated profit before exceptional items

and tax for the year 2009 was Rs. 2,251 crore

against Rs. 1,582 crore in the 2008, an increase

of 42%.

• Consolidated profit after tax for the year 2009

was Rs. 1,564 crore as against Rs. 1,100 crore in

2008, an increase of 42%.

• The expansion project of the Bargarh Plant was

substantially completed during the year. The

satellite grinding units which were set up as a

part of Wadi expansion programme at

Thondebhavi in Chikballapur District and

Kudithini in Bellary District in Karnataka were

also partly commissioned during the last

quarter of 2009.

• There was substantial progress during the year

under review in the company’s on-going projects

at Wadi and Chanda, which are slated for

completion in the first half of 2010.

• Work was started on a project to set up a 2.5

MW wind energy farm in Maharashtra.

22

3.3.3.3.3. FIFIFIFIFINANCNANCNANCNANCNANCIAL RIAL RIAL RIAL RIAL RESUESUESUESUESULLLLLTTTTTSSSSS

Consolidated Standalone

Rs Crore Rs Crore

2009 2008 2009 2008

Sale of products and services (net of excise duty)

and other income ............................................................................. 8725.418725.418725.418725.418725.41 7974.287974.287974.287974.287974.28 8268.318268.318268.318268.318268.31 7571.587571.587571.587571.587571.58

Profit after exceptional items and before tax ...................... 2250.702250.702250.702250.702250.70 1624.821624.821624.821624.821624.82 2294.392294.392294.392294.392294.39 1736.601736.601736.601736.601736.60

Provision for Tax ................................................................................ (686.79) (525.17) (687.66) (523.81)

Profit after Tax ................................................................................... 1563.911563.911563.911563.911563.91 1099.651099.651099.651099.651099.65 1606.731606.731606.731606.731606.73 1212.791212.791212.791212.791212.79

Balance brought forward from previous year ....................... 2357.25 2057.37 2477.91 2064.89

Profit available for appropriations ............................................ 3921.16 3157.02 4084.64 3277.68

Appropriations :

Interim Dividend ............................................................................... 187.70 187.65 187.70 187.65

Proposed Dividend ........................................................................... 244.06 187.68 244.06 187.68

Dividend Distribution Tax ............................................................. 73.38 63.79 73.38 63.79

General Reserve................................................................................. 350.00 350.00 350.00 350.00

Debenture Redemption Reserve ................................................. 25.00 10.00 25.00 10.00

Previous Year Dividend ................................................................... - 0.02 - 0.02

Amortisation Reserves .................................................................... 0.65 0.63 0.65 0.63

Balance carried forward to the next year’s account .......... 3040.37 2357.25 3203.85 2477.91

4.4.4.4.4. DIVIDIVIDIVIDIVIDIVIDENDENDENDENDENDDDDD

In August 2009, your Company had paid an interim

dividend of Rs. 10 per equity share, involving an

outgo (including the dividend distribution tax) of

Rs. 219.60 crore. Your Directors are now pleased to

recommend a final dividend of Rs. 13 per equity

share of Rs. 10 each. The total dividend for the year

2009 would accordingly be Rs. 23 per equity share

as against Rs. 20 per equity share for the year ended

December 31, 2008.

The total dividend outgo for the current fiscal would

amount to Rs. 505.14 crore, including dividend

distribution tax of Rs. 73.38 crore, as against

Rs. 439.12 crore, including dividend distribution tax

of Rs. 63.79 crore in the previous year.

5.5.5.5.5. ECECECECECONOONOONOONOONOMIC SCMIC SCMIC SCMIC SCMIC SCENARENARENARENARENARIO ANIO ANIO ANIO ANIO AND OUD OUD OUD OUD OUTTTTTLLLLLOOOOOOKOKOKOKOK

After the global financial slowdown witnessed in

2008, culminating in the expensive bailout for banks

and insurance companies notably in USA, there has

been a perceptible improvement in the outlook for

the global economy. The expansion of output in

emerging market economies, particularly Asia, was

the principal driver of this development. Trade is

recovering and financial market conditions are

improving. Notwithstanding the confidence exuded

by the financial sector, there are concerns that the

recovery may as yet be fragile, as the economies of

developed countries, particularly USA, continue to

lag with high unemployment, low consumer

spending and depressed housing markets.

23

The Indian economy fared better than mostdeveloped economies, although its growth was abit muted. The performance of the industrial sectorhas markedly improved. Funding constraints easedwith ample liquidity and a benign interest regimeprevailed during a major part of the year. Capitalinflows revived as India became a preferreddestination for both portfolio and direct investment.The country is now exhibiting signs of resurgence,despite contraction in exports and a subnormalmonsoon in 2009. Government expects the GDPgrowth to be around 7% in the Financial Year 2009-2010, which is an improvement over the forecast of6 - 6.5 % growth made in the beginning of the fiscalyear.

However, there are still areas that cause concern.Agricultural output may decline as a result of theweak monsoon and inflationary pressures,particularly of food prices, could hamper growthprospects for 2010. Bank credit growth continuesto be sluggish. Government fiscal deficit is expectedto reach record levels. Nevertheless, the overalleconomic outlook is generally favourable, thoughmixed, with some concern of an escalatinginflationary pressure.

6.6.6.6.6. CCCCCEMENT IEMENT IEMENT IEMENT IEMENT INNNNNDUSDUSDUSDUSDUSTTTTTRRRRRY OUY OUY OUY OUY OUTTTTTLLLLLOOOOOOK ANOK ANOK ANOK ANOK AND OPPD OPPD OPPD OPPD OPPORORORORORTTTTTUUUUUNNNNNITITITITITIIIIIESESESESES

In 2010, we expect additional capacity of about 70million tonnes to materialize, more than half of whichis coming up in South West India. Despite a growingdemand for cement, these capacity additions maycreate surpluses in some parts of the country.

The prices of major inputs for cement viz. coal, slag,gypsum, fly ash and petroleum products havestarted rising, and are likely to harden in 2010pushing up manufacturing and distribution costs.The availability of the aforesaid raw materials alsocontinues to pose challenges. Supply of railwaywagons is likely to worsen during the course of thecurrent year affecting cement despatches to somemarkets.

Government’s continued thrust on infrastructureand its stimulus packages to boost rural and othersectors are likely to accelerate construction activity.It is, therefore, expected that the demand for cementwill grow steadily in the next few years. The demandfrom the individual house builder segment is alsolikely to remain strong. Consequently, we expect thecement industry to maintain a steady growthimpetus of 9 to 10% in 2010 and in the near future.

7.7.7.7.7. CCCCCEMENT BUSIEMENT BUSIEMENT BUSIEMENT BUSIEMENT BUSINNNNNESS – PERESS – PERESS – PERESS – PERESS – PERFORMFORMFORMFORMFORMANCANCANCANCANCE AE AE AE AE AT A GLANCT A GLANCT A GLANCT A GLANCT A GLANCEEEEE

20092009200920092009 20082008200820082008 Change %Change %Change %Change %Change %

Production-million tonnes 21.37 20.83 2.6

Sales volume-million tonnes* 21.52 21.01 2.4

Sales value – Rs crore 8027.19 7282.87 10.2

EBITDA % 32.3% 25.5%

* includes sale to ACC Concrete Limited and trading sales

8.8.8.8.8. YYYYYEEEEEAR OF BUAR OF BUAR OF BUAR OF BUAR OF BUIIIII LDILDILDILDILDING ORNG ORNG ORNG ORNG ORGGGGGA NA NA NA NA NI ZI ZI ZI ZI ZAAAAATTTTTIONALIONALIONALIONALIONALCCCCCAPAPAPAPAPABABABABABIIIIILITLITLITLITLITIIIIIESESESESES

Duirng the year under review, the Companyfocussed its attention on building organizationalcapabilities.

Several initiatives were taken to keep costs undercheck and improve productivity thereby enhancingcost competitiveness to help combat intensecompetition emerging in the marketplace.

The Company aggressively pursued the utilizationof alternative fuels.

It leveraged on its surplus captive generationcapability and maximized the sale of surplus power.

Steps were taken to usher in sales and marketingexcellence, besides strengthening the dealernetwork. The Company adopted and assimilated aseries of best practices from Holcim that wouldprepare it to meet the demands of growth andcompetition.

Your Company maximized cash generation byreducing its working capital build-up and byspending its capex budget judiciously.

24

9.9.9.9.9. ENENENENENERERERERERGGGGGY RY RY RY RY RESOUESOUESOUESOUESOURRRRRCCCCCESESESESES

CCCCCaptivaptivaptivaptivaptive Pe Pe Pe Pe Powowowowower Planer Planer Planer Planer Plantststststs

Steam based Captive Power Plants (CPP) play a vitalrole in improving our cost competitiveness andproviding quality power to our plants. In 2009, grossgeneration of power by our CPPs was 1733 millionkwh which was 14% higher than the grossgeneration of 1517 million kwh in 2008. This helpedincrease the share of power from CPPs in totalpower consumption for cement production, from64% in 2008 to 70% in 2009. The sale of surpluspower from CPP after meeting the requirements ofcement plants increased three times, from 32million kwh in 2008 to 113 million kwh in 2009.

During the year under review, the Companycommissioned one 15 MW CPP as a part of Bargarhplant expansion. Additional captive powergenerating capacity of 50 MW in Wadi, 15 MW inBargarh and 25 MW in Chanda is scheduled to becommissioned and stabilized in 2010. With thisincreased captive generation, we expect ourdependence on grid power to go down further.

WWWWWind Pind Pind Pind Pind Powowowowowererererer

The wind farms in Tamil Nadu and Rajasthanperformed well and generated 39 million Kwh ofpower in 2009 against 27 million Kwh in 2008. TheCompany is setting up a 2.5 MW wind farm inMaharashtra at a cost of about Rs. 13 crore whichis slated to be commissioned during March 2010.

CCCCCoal oal oal oal oal WWWWWasherasherasherasherasheryyyyy

The Company installed and commissioned a coalwashery in Jamul in September 2009 to addressdeterioration in the quality of indigenous coal. Theplant has since stabilized and washed coal obtainedfrom this plant has shown a favourable impact onthe quality and cost of clinker. Encouraged by theseresults, the Company is commissioning a coalwashery in the Bargarh plant in 2010.

10.10.10.10.10. ALALALALALTTTTTERERERERERNANANANANATTTTTIVE FIVE FIVE FIVE FIVE FUUUUUELELELELELS & RS & RS & RS & RS & RAAAAAW MW MW MW MW MAAAAATTTTTERERERERERIALIALIALIALIALSSSSS

The Company registered a substantial increase inthe usage of Alternative Fuels and Raw Materials(AFR) through the co-processing route. The majorfocus was on industrial wastes this year in additionto strengthening the on-going initiatives oncommodities and agro-wastes. This enabled the AFRBusiness to record savings of Rs. 40.8 crores duringthe year as against Rs. 22.8 crores in 2008, markingan increase of 79%.

The AFR business increased its portfolio and hassuccessfully co-processed 27 different types ofindustrial waste streams at our plants. The clienteleof our Waste Management Services was widenedand agreements in this regard were signed withrenowned companies from chemical, FMCG,footwear, pharmaceuticals, food and beveragessectors.

11. M11. M11. M11. M11. MODERODERODERODERODERNNNNNISISISISISAAAAATTTTTION / EION / EION / EION / EION / EXPXPXPXPXPANSION / NANSION / NANSION / NANSION / NANSION / NEEEEEW PRW PRW PRW PRW PROOOOOJJJJJECTECTECTECTECTSSSSS

A major part of the Bargarh expansion project wascompleted and the Vertical Roller Mill and CaptivePower Plant were commissioned during 2009. Thenext phase of the plant is expected to becommissioned during the first quarter of 2010, afterwhich the cement grinding capacity of Bargarh willstand enhanced to 2.1 million tonnes.

The first phase of the programme to increase thecement grinding capacity by 3 million tonnes perannum of capacity in Karnataka was completed withthe launch of two new satellite grinding units. Theseare the Thondebhavi grinding plant in ChikballapurDistrict near Bangalore with a capacity of 1.6 milliontonnes per annum and the Kudithini grinding plantin Bellary District with a capacity of 1.1 milliontonnes per annum. The remaining phase of the NewWadi Expansion Project for creation of additionalclinkering capacity in Karnataka, includingadditional captive power plants of 2 x 25 MWcapacity, are expected to be completed by mid 2010.

25

The new clinkering line at Chanda in Maharashtraand a new 25 MW captive power plant, being builtat a cost of around Rs. 1450 crores is expected tobe completed by the third quarter of 2010 and thiswill increase the cement grinding capacity by 3MTPA.

The total installed capacity of ACC stood at 26million tonnes as on January 1, 2010. Aftercompletion of the Chanda and the Wadi expansionprojects, ACC’s installed capacity would reach 30.5MTPA by December 2010.

12. A12. A12. A12. A12. ACCCCCQUQUQUQUQUISITISITISITISITISITIONSIONSIONSIONSIONS

With a view to enhance its limestone reserves inRajasthan, the Company acquired a 100% equitystake in National Limestone Company PrivateLimited (NLCPL) making it a wholly ownedsubsidiary of your Company. NLCPL has limestoneleases and reserves in Sikar District in Rajasthan.

Your Company also acquired 100% equity stake inEncore Cements & Additives Private Limited (ECAPL).Consequently, ECAPL has become a wholly ownedsubsidiary of your Company with effect fromJanuary 28, 2010. ECAPL has a slag grinding unit inVisakhapatnam, which will help ACC strengthen itsmarket presence in coastal Andhra Pradesh.

Your Company entered into an agreement with thepromoters of Asian Concrete & Cement Private Ltd.(Asian Cement) to acquire a 45% equity stake inthat company. This transaction would be concludedin the first quarter of 2010. Asian Cement has a 0.3million tonne cement grinding plant in the SolanDistrict of Himachal Pradesh, and is in the processof setting up an additional 1 million tonne grindingfacility adjacent to the existing plant.

13.13.13.13.13. OOOOOVERVERVERVERVERSESESESESEAAAAAS BUSIS BUSIS BUSIS BUSIS BUSINNNNNESSESSESSESSESS

The contract with Yanbu Cement Company, SaudiArabia, for management and operation of its cement

plants crossed 30 years of successful operation andis valid until February 2011.

The contract with Mugher Cement Enterprises,Ethiopia, an Ethiopian Government enterprise forproviding project engineering and consultancyservices for setting up a 3000 TPD greenfieldclinkering line, along with a satellite grinding andpacking plant, is progressing satisfactorily and isbeing renewed till December 2010.

14.14.14.14.14. CCCCCORORORORORPPPPPORORORORORAAAAATTTTTE SOE SOE SOE SOE SOCCCCC IAL RIAL RIAL RIAL RIAL RESPESPESPESPESPONSIONSIONSIONSIONSIBBBBBIIIII L ITY &LITY &LITY &LITY &LITY &SUSSUSSUSSUSSUSTTTTTAIAIAIAIAINABNABNABNABNABLE DELE DELE DELE DELE DEVELVELVELVELVELOPOPOPOPOPMENTMENTMENTMENTMENT

The Company released a web update for the year2008 to its first Sustainable Development (SD)Report published in the preceding year. The year sawa continued thrust to deepen SD participation acrossdifferent functions and plants of the organisation.

As regards Corporate Social Responsibility (CSR), theCompany continued to engage with the localcommunity around its operations, with a view toconsolidating its trust by encouraging activeinvolvement of the community in variousdevelopment and welfare schemes. Each of ourplants has now formulated its own CSR policy andstrategy based on site requirements, keeping in linewith the corporate CSR policy and executionstrategy.

An important approach used in this regard was thecreation of Community Advisory Panels, comprisinggroups of local residents, and the use of these panelsto promote larger involvement of the localcommunities in the development of their respectivevillages. The panels play a major role in finalizingthe execution strategy for community programmesat each plant location. Involving the localcommunity in the execution of their owndevelopment process, in this manner, ensures itssustainability which in turn secures a commonthread of trust from the community towards theCompany.

26

ACC’s Public Private Partnership (PPP), for theupgradation of seven Government run IndustrialTraining Institutes (ITI’s), continued to be a thrustarea with the objective of improving the quality oftraining, leading to better employability of these ITItrainees.

During the year 2009, various processes were setup to measure the performance of these ITIs andalso capability building workshops were organized,with the objective of making the partnered ITI’s intoCentres of Excellence. . . . . The workshops were attendedby the principals of these ITI’s, along with acoordinator from ACC, to help improve the coursecurriculum of these ITI’s.

15. O15. O15. O15. O15. OCCCCCCUCUCUCUCUPPPPPAAAAATTTTTIONAL HIONAL HIONAL HIONAL HIONAL HEEEEEALALALALALTTTTTH & SH & SH & SH & SH & SAFETY (AFETY (AFETY (AFETY (AFETY (OH&S)OH&S)OH&S)OH&S)OH&S)

Special emphasis was placed on OccupationalHealth and Safety. Many significant initiatives wereundertaken during the year, to improve safetystandards and to make the organization a safe placeto work. A series of actions were defined to securea sea change in the management of OH&S at anoperational level through the OH&S TransformationPlan, which was developed by integrating actionsfrom various sites. The objective was to instituteactions that target all critical activities and toaccelerate implementation of the OH&S standardsrelated to such activities.

In order to bring in significant improvement inmanaging the safety of contract workmen in ouroperations, a major initiative called “SurakshaBandhan” was launched. The key areas of focus inthis initiative are the implementation of advancedsafety management standards and processes,improved contractor safety managementcapabilities, building skills of contractors’supervisors and workmen and a zero tolerance forviolations. The initiative is significant as itdemonstrates ACC’s commitment to its OH&S visionof “No Harm anywhere to anyone associated withACC”.

16. H16. H16. H16. H16. HUUUUUMMMMMAN RAN RAN RAN RAN RESOUESOUESOUESOUESOURRRRRCCCCCESESESESES

In 2009, ACC launched several new programmes andstrengthened existing Human Resource Processesthat favourably impacted its employees, judging bythe results of an annual survey of Employees.

Enabling EmploEnabling EmploEnabling EmploEnabling EmploEnabling Employyyyyee Cee Cee Cee Cee Communicaommunicaommunicaommunicaommunicationtiontiontiontion

The “Accelerate” Portal for employees which wasintroduced in 2008 to a small group of employeeswas well received and found to facilitate employeecommunication across levels and locations on awide variety of issues. Encouraged by this, theCompany went on to launch the portal in Hindi withaccess provided to all employees through kiosksinstalled at all locations. In the next step, the portalwill be simultaneously offered in major regionallanguages. This platform is also being deployed foremployee self-service facilities.

StrStrStrStrStraaaaategic tegic tegic tegic tegic TTTTTalenalenalenalenalenttttt Managemen Managemen Managemen Managemen Managementtttt (S (S (S (S (STTTTTM)M)M)M)M)

A transparent and efficient system for managingtalent has been conceptualized and is underimplementation. The new Strategic TalentManagement programme will help create ablueprint for development of talent in theorganization by introducing effective measures toidentify companywide talent, build adequatestrength for future needs through successionplanning for critical positions while creating ahealthy balance between internal and externaltalent in the organization.

Special Change ManagemenSpecial Change ManagemenSpecial Change ManagemenSpecial Change ManagemenSpecial Change Managementtttt initia initia initia initia initiativtivtivtivtives fes fes fes fes for Shopor Shopor Shopor Shopor ShopFloor AssociaFloor AssociaFloor AssociaFloor AssociaFloor Associatestestestestes

During the year under review, ACC launched anumber of transformation initiatives that involveshop floor associates and was directed at developinggreater team working skills amongst them andoverall manufacturing excellence.

InnoInnoInnoInnoInnovvvvvaaaaate te te te te TTTTTo Eo Eo Eo Eo Exxxxxcelcelcelcelcel

This is a special platform to encourage change andinnovation at the workplace. Cross functional teams

27

across various plants, sales units and functionaldepartments are encouraged to work on aninnovative idea/project. The teams then competeat unit and regional levels and finally the winningteams participate in a competitive presentation oftheir project at the corporate level.

EmploEmploEmploEmploEmployyyyyee Lee Lee Lee Lee Learning and Deearning and Deearning and Deearning and Deearning and Devvvvvelopmenelopmenelopmenelopmenelopmenttttt

The Company continues to place great emphasis onenhancement of skills and capabilities of itsemployees and on imparting required training formeeting customers’ requirements. This includesinternal and external training workshops, coursesand seminars. The training process has beendesigned to suit the specific needs of the Companyand also attain all round employee developmentand growth. Through the ACC Academy at Thane,ACC Cement Technology Institute at Jamul and theSumant Moolgaonkar Technical Institute at Kymore,various training programmes were continued to beimparted to improve the skill sets of employees andenhance the technical talent pool of the Company.

Employee Relations were cordial across all Plantsand offices of ACC during the year.

17. FI17. FI17. FI17. FI17. FINANCNANCNANCNANCNANCEEEEE

Your Company retained its “AAA” rating by CRISILfor its long-term non-convertible debenture andbank loan for working capital. In October 2009, yourCompany borrowed Rs. 300 crore through non-convertible debentures having a five-year maturityat an all inclusive cost of 8.45% per annum.

As on 31st December, 2009, the Company’s debtequity ratio stood at a comfortable level of 0.09:1.

18. SHAR18. SHAR18. SHAR18. SHAR18. SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL

During the year, the Company allotted 58,473 equityshares of the face value of Rs. 10/- each,consequent to the exercising of Stock Options byits employees.

Details of the Employees’ Stock Option Scheme, asrequired under the SEBI guidelines, are set out inAnnexure ‘C’ to the Directors’ Report.

19. FIXED DEP19. FIXED DEP19. FIXED DEP19. FIXED DEP19. FIXED DEPOSITOSITOSITOSITOSITSSSSS

Your Company had discontinued its fixed depositschemes in the financial year 2001-2002, and as onDecember 31, 2009, the total amount of fixeddeposits matured and remaining unclaimed was Rs.17.53 lakhs.

20. PER20. PER20. PER20. PER20. PERFORMFORMFORMFORMFORMANCANCANCANCANCE OF SUE OF SUE OF SUE OF SUE OF SUBSIBSIBSIBSIBSIDIARDIARDIARDIARDIARY CY CY CY CY COOOOOMPMPMPMPMPANANANANANIIIIIESESESESES

20.120.120.120.120.1 AAAAACCCCCC CC CC CC CC Concroncroncroncroncrete Limitedete Limitedete Limitedete Limitedete Limited

Ready Mixed Concrete (RMX) businessremains a strategically important channel forcement, which the Company will continue tostrengthen. In 2009, this wholly ownedsubsidiary company, managed the challengesof a slowdown in the RMX market which wasdue to reduced demand from the real-estatesector in the main metros and cities, wheremost of the Company’s RMX plants arelocated. During this period, the Companyfocused on consolidation of its existingfacilities, by seeking to grow volumes fromthe existing capacity as well as from dedicatedon-site project solutions.

The numbers of available operating plantsincreased to 44, from 38 in 2008, ascommitted capital projects were completedand dedicated site, plants and collaborationopportunities were realised.

Sales volumes in 2009 grew by 6.5% withturnover decreasing marginally to Rs. 513crore from Rs. 515 crore, due to marketpressure on selling prices. Raw material unitprices also increased in 2009, but these weremore than compensated by better mixeddesign optimisation resulting in an overallreduction in the specific raw material costs.

28

EBITDA losses of this business wereconsiderably reduced by 65%, from Rs. 74crore to Rs. 26 crore, through systematicmanagement of overhead costs andproductivity.

ACC Concrete Limited is well placed to growand add value to the group, going forward asthe market regains momentum, as a result ofGovernment’s infrastructure programme andrenewed confidence in the real estate sector.

20.220.220.220.220.2 Bulk CBulk CBulk CBulk CBulk Cemenemenemenemenementtttt C C C C Corpororpororpororpororporaaaaation (India) Limitedtion (India) Limitedtion (India) Limitedtion (India) Limitedtion (India) Limited(BC(BC(BC(BC(BCCCCCCI)I)I)I)I)

ACC holds 94.65% of the equity of thisCompany. BCCI handled 8.15 lakh tonnes ofbulk cement during the year, as compared to7.60 lakh tonnes in the previous year. The lossfor the year 2009, increased to Rs 1.08 crorefrom Rs 0.53 Crore in the previous year, mainlydue to a reduction in railway freight rebate.

20.3 Luck20.3 Luck20.3 Luck20.3 Luck20.3 Lucky Minmay Minmay Minmay Minmay Minmattttt Limited Limited Limited Limited Limited

This wholly owned subsidiary company wasfully operational during the year 2009 and thetotal limestone production for the year was1.10 lakh tonnes. The company has incurreda loss of Rs. 15.43 lakh for the year 2009, ascompared to a loss of Rs. 22.23 lakh for theprevious year.

20.420.420.420.420.4 N aN aN aN aN ational Limestone Ctional Limestone Ctional Limestone Ctional Limestone Ctional Limestone Companompanompanompanompany Privy Privy Privy Privy Privaaaaat et et et et eLimitedLimitedLimitedLimitedLimited

This wholly owned subsidiary company wasacquired in April 2009. The company hasincurred a loss of Rs. 6 lakh for the year. Theoperations are to commence in 2010.

20.520.520.520.520.5 AAAAACCCCCC MinerC MinerC MinerC MinerC Mineral Ral Ral Ral Ral Resouresouresouresouresources Limited (Aces Limited (Aces Limited (Aces Limited (Aces Limited (AMRMRMRMRMRL)L)L)L)L)

Formerly known as The Cement MarketingCompany of India Limited, ACC MineralResources Limited (AMRL) is a wholly ownedsubsidiary that now serves as a special

purpose vehicle for our coal ventures. AMRLhas signed agreements with Madhya PradeshState Mining Corporation Limited for thedevelopment of four coal blocks through fourassociate companies. which have since beenincorporated.

20.6 A20.6 A20.6 A20.6 A20.6 Audited Staudited Staudited Staudited Staudited Statementementementementements of accts of accts of accts of accts of accounounounounounts of thets of thets of thets of thets of theCCCCCompanompanompanompanompany’y’y’y’y’s subsidiariess subsidiariess subsidiariess subsidiariess subsidiaries

As required under Section 212 of theCompanies Act 1956, the audited statementsof accounts, along with the report of theBoard of Directors relating to the Company’ssubsidiaries viz. ACC Concrete Limited, BulkCement Corporation (India) Limited, LuckyMinmat Limited, National LimestoneCompany Private Limited and ACC MineralResources Limited, together with therespective Auditors’ Reports thereon for theyear ended December 31, 2009 are annexed.

21. DI21. DI21. DI21. DI21. DIRRRRRECTECTECTECTECTORORORORORSSSSS

Dr. Nirmalya Kumar, who was appointed on theBoard of Directors with effect from January 24,2006, resigned as Director with effect from January9, 2009. The Board has placed on record its warmappreciation of the valuable services rendered byDr. Nirmalya Kumar during his tenure as Director ofthe Company.

Ms. Shikha Sharma, who was appointed on theBoard of Directors with effect from December 13,2006, resigned as Director with effect from May 29,2009, consequent upon her appointment asManaging Director & CEO of Axis Bank. The Boardhas placed on record its warm appreciation of thevaluable services rendered by Ms. Shikha Sharma,during her tenure as Director of the Company.

Mr. Onne van der Weijde, who was appointed onthe Board of Directors with effect from January 9,2009, resigned as Director with effect from October24, 2009. The Board has placed on record its warmappreciation of the valuable services rendered by

29

Mr. Onne van der Weijde during his tenure asDirector of the Company.

Mr. Kuldip Kaura has been appointed as anIndependent Director in the casual vacancy causedby the resignation of Ms. Shikha Sharma, with effectfrom October 28, 2009. He holds office upto thedate of the ensuing Annual General Meeting ofthe Company. Accordingly, his appointment as aDirector has been included in the Notice conveningthe Annual General Meeting.

In accordance with the provisions of the CompaniesAct, 1956, and in terms of the Memorandum andArticles of Association of the Company, Mr. S. M.Palia, Mr. Naresh Chandra and Mr. ShaileshHaribhakti retire by rotation and are eligible forreappointment.

22.22.22.22.22. IIIII N TN TN TN TN TERERERERERNAL CNAL CNAL CNAL CNAL CONTONTONTONTONTRRRRROL SOL SOL SOL SOL SYYYYYSSSSSTTTTTEMEMEMEMEMS ANS ANS ANS ANS AND D D D D TTTTTHHHHH EIEIE IE IE IRRRRRADEQUADEQUADEQUADEQUADEQUAAAAACCCCCYYYYY

The Internal Audit Department functionsindependently, monitors and evaluates the efficacyand adequacy of internal control systems in theCompany, and their compliance with operatingsystems, accounting procedures and policies at allthe Company’s locations, including its subsidiaries.Every quarter, the Audit Committee of the Board ispresented with the audit findings and connectedissues, if any, together with an implementationtracker which highlights management action takenon past audit issues.

Your Company has also implemented a well-structured Internal Control System (ICS) and theinternal and external audit periodically tests all thedefined controls to ensure full compliance.

23. BUSI23. BUSI23. BUSI23. BUSI23. BUSINNNNNESS RESS RESS RESS RESS RISK MISK MISK MISK MISK MANAANAANAANAANAGEMENTGEMENTGEMENTGEMENTGEMENT

Your Company has implemented a Business RiskManagement (BRM) process that systematicallyidentifies risks and opportunities. The BRM processsupports the Managing Committee in strategicdecision making. The process is robust and is a

rolling exercise, with a consistent annual review atthe regional level and at the corporate level, toexamine and evaluate risks and opportunities. Adetailed mind mapping of the risks is carried out,so as to identify the root cause of the particularrisk, to enable the Management to take effectivesteps to address / mitigate such risks. The risks areplotted on a likelihood matrix and then integratedinto the annual business plans as well as the auditplan of the Company, as relevant.

The following is an analysis of the Company’s keybusiness risks and mitigation plans:

FFFFFuels Riskuels Riskuels Riskuels Riskuels Risksssss

Your Company is a major consumer of coal forproducing cement at various locations. The releaseof coal and allocation of quantities of coal, areentirely dependent upon the demand from allsectors and is in control of the Government of India.To ensure the timely availability of coal, yourCompany has taken steps to acquire coal blocks, toenter into medium term firm contracts and also tothe possibility of using alternate fuels in place ofcoal.

PrPrPrPrProjecojecojecojecojects Riskts Riskts Riskts Riskts Risksssss

Your Company is executing large CAPEX projects toset up new cement manufacturing facilities, wherethe Company is exposed to risks of timelycompletion and cost competitiveness. ACC hasinitiated semi-turnkey projects approach to reducethe time and costs for completion of large projectsand has also restructured the project organisation.

CCCCCompliance Riskompliance Riskompliance Riskompliance Riskompliance Risksssss

Your Company is exposed to significant risks due tonon-compliance with various statutes andregulations including Competition Act. TheCompany is mitigating these risks through regularreviews of legal compliance, through internal as wellas external compliance audits and training torelevant employees. The Company has set up the

30

processes to mitigate the environmental compliancerisks such as investments in pollution abatementequipment, monitoring of ambient air quality, andconstruction of environmental labs.

PPPPPeople riskeople riskeople riskeople riskeople risksssss

Retaining the existing talent pool and attractingnew manpower are major risks in this respect. TheCompany has initiated various measures such asrollout of strategic talent management system andintegration of learning activities in order to retaintalent.

The above key risks, along with all other risks andtheir mitigation plans as well as opportunitiesassessed by the Management, are built into therolling business plans of the Company.

24. A24. A24. A24. A24. AWWWWWARARARARARDSDSDSDSDS

The Council for Fair Business Practices (CFBP)conferred on ACC Limited, the 2008 Jamnalal BajajAward for Fair Business Practices in the category,Large Manufacturing Enterprises. The citation statesthat the award is an acknowledgement of ACC’scommitment towards customer satisfaction andcommunication, employee motivation, environmentprotection, CSR, legal compliance and its businesspractices that ensure sustainable development andpromote social equity.

Your Directors have pleasure in informing that theCompany’s Annual Report and Accounts for the year2008 has been adjudged winner of the Gold Shieldin the category, Manufacturing and TradingEnterprises by The Institute of CharteredAccountants of India. Winning this coveted awardis a testament to your Company’s prudentaccounting practices, quality of financial statementsand the transparency and fair disclosure ofinformation to all stakeholders.

25. EN25. EN25. EN25. EN25. ENHANCHANCHANCHANCHANCIIIIING SHARNG SHARNG SHARNG SHARNG SHAREHOLDER EHOLDER EHOLDER EHOLDER EHOLDER VVVVVALALALALALUUUUUEEEEE

The Company’s strategic vision statement accords

a very singular position to value creation. TheCompany’s operations are guided and alignedtowards maximizing shareholder value. Newprojects for capacity expansion and cost reductionexercises are continuously taken up to achievegrowth in sales and improvement in profitability.

26. DI26. DI26. DI26. DI26. DIRRRRRECTECTECTECTECTORORORORORS’S’S’S’S’ R R R R RESPESPESPESPESPONSIONSIONSIONSIONSIBBBBBIIIIILITLITLITLITLITIIIIIESESESESES

To the best of their knowledge and belief andaccording to the information and explanationsobtained by them, your Directors make thefollowing statement in terms of Section 217(2AA)of the Companies Act, 1956:

a) that in the preparation of the annual accountsfor the year ended December 31, 2009, theapplicable accounting standards have beenfollowed along with proper explanation relatingto material departures, if any,

b) that such accounting policies as mentioned inNote 1 of the Notes to the Accounts have beenselected and applied consistently, andjudgments and estimates have been made thatare reasonable and prudent so as to give a trueand fair view of the state of affairs of theCompany as on December 31, 2009, and of theprofit of the Company for the year ended onthat date,

c) that proper and sufficient care has been takenfor the maintenance of adequate accountingrecords, in accordance with the provisions of theCompanies Act, 1956, for safeguarding theassets of the Company and for preventing anddetecting fraud and other irregularities,

d) the annual accounts have been prepared on agoing concern basis.

27. A27. A27. A27. A27. AUUUUUDIT & ADIT & ADIT & ADIT & ADIT & ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

The Company’s Auditors M/s S R Batliboi &Associates, Chartered Accountants, who retire at theensuing Annual General Meeting are eligible forreappointment. They have confirmed their eligibility

31

under Sec. 224 of the Companies Act, 1956 forreappointment as auditors of the Company.

As per the requirement of the Central Governmentand pursuant to Sec 233B of the Companies Act,1956, your Company carries out an audit of costrecords relating to cement every year. Subject to theapproval of the Central Government, the Companyhas appointed M/s N I Mehta & Co. to audit thecost accounts for the financial year 2009.

28. PEER R28. PEER R28. PEER R28. PEER R28. PEER REEEEEVIVIVIVIVIEEEEEWWWWW

During the year, the Company received a letter fromSecurities and Exchange Board of India (SEBI),informing that a peer review would be undertakenin respect of the “Limited Review” undertaken bythe Statutory Auditors for the third quarter of thefinancial year 2009 and the Audited Statement ofAccounts for the year ended December 31, 2008.

Pursuant thereto, BSR & Co., Chartered Accountantsconducted the aforesaid peer review.

29. C29. C29. C29. C29. CORORORORORPPPPPORORORORORAAAAATTTTTE GOE GOE GOE GOE GOVERVERVERVERVERNANCNANCNANCNANCNANCEEEEE

As per Clause 49 of the Listing Agreement with theStock Exchanges, a separate section on corporategovernance practices followed by the Company,together with a certificate from the Company’sAuditors confirming compliance, is set out in theAnnexure forming part of this report.

30. C30. C30. C30. C30. CONSOLIONSOLIONSOLIONSOLIONSOLIDDDDDAAAAATTTTTED FIED FIED FIED FIED FINANCNANCNANCNANCNANCIAL SIAL SIAL SIAL SIAL STTTTTAAAAATTTTTEMENTEMENTEMENTEMENTEMENTSSSSS

The Consolidated Financial Statements prepared inaccordance with Accounting Standard AS21 –Consolidated Financial Statements of the Groupform part of this report. The net worth of the Groupas on December 31, 2009 is Rs. 5868.97 crore asagainst Rs. 4823.12 crore, as at the end of theprevious year.

31. EN31. EN31. EN31. EN31. ENERERERERERGGGGGYYYYY, , , , , TTTTTECECECECECHHHHHNOLNOLNOLNOLNOLOOOOOGGGGGY & FORY & FORY & FORY & FORY & FOREIGN EEIGN EEIGN EEIGN EEIGN EXXXXXCCCCCHANGEHANGEHANGEHANGEHANGE

The particulars of conservation of energy, technologyabsorption and foreign exchange earnings and outgoin accordance with the provisions of Sec 217(1)(e) ofthe Companies Act, 1956, read with the Companies

(Disclosure of Particulars in the Report of the Boardof Directors) Rules, 1988, are given in Annexure ‘A’ tothe Directors’ Report.

32. P32. P32. P32. P32. PARARARARARTTTTTICUICUICUICUICULARLARLARLARLARS OF EMPLS OF EMPLS OF EMPLS OF EMPLS OF EMPLOOOOOYYYYYEESEESEESEESEES

Information in accordance with the provisions ofSection 217(2A) of the Companies Act, 1956, readwith the Companies (Particulars of Employees) Rules1975 as amended, regarding employees is given inAnnexure ‘B’ to the Directors’ Report.

33. A33. A33. A33. A33. ACCCCCKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

Your Directors would like to acknowledge and placeon record their sincere appreciation of allstakeholders – shareholders, banks, dealers, vendorsand other business partners for the excellentsupport received from them during the year. YourDirectors recognize and appreciate the efforts andhard work of all the employees of the Company andtheir continued contribution to its progress.

34. C34. C34. C34. C34. CAAAAAUUUUUTTTTTIONARIONARIONARIONARIONARY SY SY SY SY STTTTTAAAAATTTTTEMENTEMENTEMENTEMENTEMENT

Statements in the Directors’ Report and theManagement Discussion & Analysis describing theCompany’s objectives, expectations or forecasts maybe forward-looking within the meaning of applicablesecurities laws and regulations. Actual results maydiffer materially from those expressed in thestatement. Important factors that could influence theCompany’s operations include global and domesticdemand and supply conditions affecting selling pricesof finished goods, input availability and prices,changes in government regulations, tax laws,economic developments within the country and otherfactors such as litigation and industrial relations.

For and on behalf of the Board,

N S SekhsariaChairman


32

ANNEXURE ‘A’ TO DIRECTORS’ REPORT (Para 31)

Section 217 (1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of particulars in the Report of Board ofDirectors) Rules 1988.

A:A:A:A:A: CCCCCONSERONSERONSERONSERONSERVVVVVAAAAATTTTTION OF ENION OF ENION OF ENION OF ENION OF ENERERERERERGGGGGYYYYY

(a) EnerEnerEnerEnerEnergggggy cy cy cy cy conseronseronseronseronservvvvvaaaaation and eftion and eftion and eftion and eftion and efficiency imprficiency imprficiency imprficiency imprficiency improoooovvvvvemenemenemenemenementtttt measur measur measur measur measures wes wes wes wes wererererere undere undere undere undere undertaktaktaktaktaken in ven in ven in ven in ven in various ararious ararious ararious ararious areas of the cemeneas of the cemeneas of the cemeneas of the cemeneas of the cementtttt plan plan plan plan plants:ts:ts:ts:ts:

• Optimisation of crusher resulting in operation of one crusher to cater to requirement of two raw mills, thereby stoppingthe other crusher at Kymore plant.

• Replacement of higher KW motors by optimum capacity energy efficient motors and commissioning of Variable VoltageVariable Frequency Drives (VVVFD) for various applications across ACC plants.

• Use Grid Rotor Resistance control for speed, thereby eliminating damper control of SEPEX FAN at Bargarh and Kymoreplants.

• Replacement of raw mill main drive with high efficiency motor at Gagal plant.

• Installation of new screw compressor to replace multiple reciprocating compressors. Installation of microprocessor basedmulti-step automation control for various reciprocating compressors to optimise the operating pressure within narrowband at Gagal plant.

• Installation of automatic maximum demand controller with Time of Day settings to limit the peak demand to permissiblelimits at Bargarh plant.

• Conversion of pneumatic conveying to mechanical conveying for 6 cement mills at Jamul plant.

• ACC Cement House was renovated into a Green Building with many energy saving initiatives, which has reduced the airconditioning as well as lighting load. The project has been registered under the Leadership in Energy and EnvironmentalDesign (New Construction & Major renovation category) under Indian Green Building Council (IGBC), and will be India’sfirst ‘renovated green building’. Apart from being a Green Building Project, Cement House Mumbai has been also awardedhighest rating of “Five Star” by Bureau of Energy Efficiency, Government of India.

• Various initiatives were taken at Thane complex to reduce electricity consumption, like installation of energy savers for airconditioners, regulations on operating time for the air conditioners etc.

• Energy Audit was conducted at Jamul, Gagal and Tikaria plants and compressed air audit was conducted for Lakheri, Wadi,Kymore and Bargarh plants.

• Capacitor banks were installed at Motor Control Centre’s (MCC’s), Power Ccntrol Centre’s (PCC), and individual loads acrossall ACC plants to improve the power factor.

GrGrGrGrGreen poween poween poween poween powererererer –

• The Wind Farm installed at Rajasthan generated 14.04 million units of green energy during 2009 as compared to 3.78million units generated during 2008.

• The Wind Farm installed at Tamilnadu generated 25.3 million units of green energy during 2009 as compared to 23.4million units generated during 2008.

AlternaAlternaAlternaAlternaAlternativtivtivtivtive fuels –e fuels –e fuels –e fuels –e fuels –

In 2009 the Alternative Fuels and Raw Materials business has recorded savings of Rs. 40.8 Crores as against Rs. 22.8 Crores in2008. This was achieved by co-processing 77,800 tonnes of Industrial waste as compared to 12,900 tonnes in 2008.

(b)(b)(b)(b)(b) Additional PrAdditional PrAdditional PrAdditional PrAdditional Proposals being implemenoposals being implemenoposals being implemenoposals being implemenoposals being implemented fted fted fted fted for furor furor furor furor further cther cther cther cther conseronseronseronseronservvvvvaaaaation of enertion of enertion of enertion of enertion of energggggyyyyy

• Installation of Programmable Logic Controller (PLC) system and closed circuiting of cement mill is in progress at Damodharplant.

• At Gagal, Waste Heat Recovery Boiler is planned during 2010 to supplement the Grid Power.

• Installation of VVVFD’s are planned for additional drives identified during 2009 across ACC plants.

33

(c)(c)(c)(c)(c) ImpacImpacImpacImpacImpacttttt of the abo of the abo of the abo of the abo of the abovvvvve measure measure measure measure measures fes fes fes fes for ror ror ror ror reduceduceduceduceduction of enertion of enertion of enertion of enertion of energggggy cy cy cy cy consumption and consumption and consumption and consumption and consumption and consequenonsequenonsequenonsequenonsequenttttt impac impac impac impac impacttttt on c on c on c on c on costostostostost of pr of pr of pr of pr of producoducoducoducoduction -tion -tion -tion -tion -

The measures stated in points (a) and (b) above would further improve the thermal and electrical energy efficiency of thePlants. Year 2009 saw a reduction of 2.45% in Electrical Energy over 2008.

FFFFForm Aorm Aorm Aorm Aorm A

PPPPPowowowowower and Fer and Fer and Fer and Fer and Fuel Cuel Cuel Cuel Cuel Consumptiononsumptiononsumptiononsumptiononsumption

Current Year Previous Year

Lakh Total Cost Rs. Per Lakh Total Cost Rs. PerUnits(Kwh)@ (Rs Lakhs) Unit Units(Kwh) (Rs Lakhs) Unit

1. Electricity

a) Purchased 5840 21971 3.76 6812 25868 3.80

b) Own Generation

i) Through DG 45 723 16.01 129 1294 10.00

ii) Through SteamTurbine/Generator* 17721 43874 2.48 15437 47627 3.09

Current Year Previous Year

Quantity Total Cost Average Rate Quantity Total Cost Average Rate(Lakh Tonnes) (Rs. Lakhs) (Rs./Tonne) (Lakh Tonnes) (Rs. Lakhs) (Rs./Tonne)

2. Coal (for Kiln)** 22.44 86430 3852 22.89 84628 3697

* Includes WTG generation

** Does not include other fuel/alternative fuels used in Kiln

Above are at gross level

CCCCConsumption Ponsumption Ponsumption Ponsumption Ponsumption Per Uniter Uniter Uniter Uniter Unit of Pr of Pr of Pr of Pr of Producoducoducoducoductiontiontiontiontion

@ Standard Current Year Previous Year

a) Electricity Kwh/T *

Cement

Wet Process 89-105

Semidry / Dry process 98-110 85 87

b) Furnace Oil KLtrs/T

Cement - - -

c) Coal for Kiln

K.cal/Kg of clinker

Wet process 1350

Semidry / Dry process 720-990 746 754

@ Source: Publication of Confederation of Indian Industries

* Excludes non-process power consumption

34

(B)(B)(B)(B)(B) TTTTTECECECECECHHHHHNOLNOLNOLNOLNOLOOOOOGGGGGY ABSORY ABSORY ABSORY ABSORY ABSORPPPPPTTTTTIONIONIONIONION

RRRRResearesearesearesearesearch & Dech & Dech & Dech & Dech & Devvvvvelopmenelopmenelopmenelopmenelopmenttttt

1.1.1.1.1. Specific arSpecific arSpecific arSpecific arSpecific areas in which R & D is carried outeas in which R & D is carried outeas in which R & D is carried outeas in which R & D is carried outeas in which R & D is carried out by the C by the C by the C by the C by the Companompanompanompanompanyyyyy

a) Improving quality of blended cement through innovative process utilizing industrial by-products

b) Conservation of resources through use of low-grade limestone for cement manufacture

c) Development of application Oriented Cements with decreased Specific CO2 emissions

d) Enhanced absorption of blending materials

e) Process / product design improvements

f) Development of new products or discovering new methods of analysis

g) Productivity research for increased efficiency in use of resources

h) Recycling of wastes and research for efficient use of scarce materials

i) Characterization of Industrial wastes and looking into possibilities of environment friendly co-processing of wastes incement manufacture leading to thermal substitution and conservation of natural resources

j) Beneficiations of raw materials and fuels

2.2.2.2.2. Benefits derivBenefits derivBenefits derivBenefits derivBenefits derived as red as red as red as red as resultesultesultesultesult of abo of abo of abo of abo of abovvvvve R & De R & De R & De R & De R & D

a) Effective use of marginal quality raw materials and fuels with improved clinker quality

b) Increased absorption of blending materials in blended cements

c) Effective replacement of the costlier natural Gypsum by cheaper (by-product) Phospho gypsum without affecting thequality of cement

d) Maintain a lead position in all the market clusters of the country

e) Enhanced fuel efficiency

3.3.3.3.3. FFFFFuturuturuturuturuture plan of ace plan of ace plan of ace plan of ace plan of actiontiontiontiontion

a) Exploratory research work on the above specific areas

b) Focus on development of products aimed at enhancing use of cement in various applications

c) Use of waste / by-products in cement manufacture as alternative materials

d) Improve product quality particularly with respect to long term durability and reduction in its cost of manufacture

4.4.4.4.4. EEEEExpenditurxpenditurxpenditurxpenditurxpenditure on R & De on R & De on R & De on R & De on R & D Rs LakhsRs LakhsRs LakhsRs LakhsRs Lakhs

a. Capital 37

b. Recurring (Gross) 325

c. Total 362

d. Total R&D expenditure as percentage of total turnover 0.05%

5.5.5.5.5. FFFFForororororeign Eeign Eeign Eeign Eeign Exxxxxchange Echange Echange Echange Echange Earnings & Outgoarnings & Outgoarnings & Outgoarnings & Outgoarnings & Outgo Rs LakhsRs LakhsRs LakhsRs LakhsRs Lakhs

Foreign exchange earned 5561

Foreign exchange used 4217

For and on behalf of the Board


Mumbai: February 4, 2010

35

ANNEXURE ‘B’ TO DIRECTORS’ REPORT (Para 32)

Sr. Name Designation & Remuneration Qualifications Date of Total Age LastNo. Nature of Duties Gross Commencement Experience in Employment

Rs. of Employment (Years) Years1 A Anjeneyan* Head Secretarial & Compliance 2,464,241 B.Com(Hons),CAIIB, ACS 21-May-2004 33 53 Pfizer Ltd2 A G Singewar Head Plant Operations 2,688,216 Diploma, BSc. 1-Jul-1982 28 51 Nil3 A K Saxena Director - Wadi Plant 5,025,191 BE, DME 18-Nov-1985 24 47 Lohia Starlinger

Pvt Ltd4 Abhay Kant Pathak* Head-Renewable Energy Projects 725,750 BTech, MBA 8-Aug-1970 40 61 Nil5 Achintya Pal Head-Finplan, Bud,Mfg.Cst & Reprt 2,744,841 BSc,CA 15-Jan-1991 27 51 Nuclear Power

Corporation6 Anand Shukla Chief People Officer 13,401,647 Master Degree in 2-Jan-2009 22 46 Sabmiller India

Social Work, PGDM, BIT Pvt. Ltd.7 Anant Kumar Mahobe Director - Sindri Plant 2,830,837 Diploma (Others),MS 1-Mar-1984 25 45 Nil8 A N L Raja* Director-Raw Materials & Mines Planning 342,571 BSc, MSc-Tech, 23-Dec-1970 39 60 Nil9 Arun Mahajan Head- Corporate Affairs-HP 3,434,945 BE, 1-Aug-1971 38 59 Nil10 Atul Khosla Director - Gagal Plant 5,270,892 B.E, DBA 18-Jul-2007 26 52 Lafarge India11 B Sherdiwala Director- Organization Management 5,009,279 B.Sc.,M.A.,M.Phil.,LLB 19-Mar-1984 27 52 Nil12 B Venugopal Rao Head - Organization Planning 2,406,014 BE/B Tech,Me / M Tech, 1-Jun-1991 20 41 Nil

Diploma (Others)13 Bharat Parekh Head-capex Procurement 4,770,053 B.E(Electronics) 10-Jul-2008 32 56 Aditya Birla Group14 Biprajit Chakravarty Head - OH&S 4,251,987 B Tech (Hons) Mining 4-Apr-2005 30 52 Enmiin Engrs15 B. K. Shrikhande Dir - Madukkarai Plant 3,526,774 B Tech, 1-Jul-1980 30 51 Nil16 Burjor Nariman* Company Secretary & 2,451,770 Fellow Member of the 14-Dec-2009 35 55 The Wadia Group

Head Compliance Institute of Company of CompaniesSecretaries of India, B.Com.

17 Chander Shekhar Director - Chanda Plant 5,407,691 B.E, 13-Oct-1981 28 52 Navin Chemicals18 Daljeet Singh Ghai* Chief Executive-Northern Region 9,444,980 B.E, 1-Aug-1970 40 62 Indian Rayons Ltd19 Dr. Rajen Mehrotra Chief Knowledge Officer 3,814,245 B.E(Elec & Mech.) 1-Aug-2007 40 65 United Nations

MMS PGDIM PHD InternationalLabour Org.

20 Dr. A K Saxena Head Plant Operations 2,528,639 MSc,BSc,PHD 8-Dec-1980 30 50 Nil21 G N Pandey Equipment Pooling Head 2,424,708 BE /B Tech 1-Nov-1982 30 55 Bhilai Steel Plant22 G P Tiwari* Director Plant - Chaibasa 1,990,800 MSc (Chemistry) 9-Jul-2009 22 47 Ultratech Limited23 Gautam Ghosal* Head - Commercial Training 2,074,778 BSc Engg, 6-Apr-1999 28 60 Jubily Automobiles24 Inder M Sharma* Plant Head 1,910,120 BSc (Mech Engg) 18-Dec-2003 36 59 Vikrant25 J L Tiwari Director - Jamul Plant 4,411,166 BE 19-May-1982 31 56 Sahyadri Dyestuff

& Chemicals Ltd26 J N Dhondy Head - Sec Services 2,724,733 BA,LLB,LLM 26-Mar-1973 36 58 Nil27 J V B Sastry Director-Logistics South-West 5,260,717 M Com 24-Jun-1988 30 50 Coromandel

Fertilisers Ltd28 J. Datta Gupta Chief Commercial Officer 8,609,449 B.Tech(IIT) 10-Aug-1976 33 55 Nil29 Joydeep Mukherjee Director Sales - Northern Region 3,680,291 BA,PGDBM, MIB 21-Jun-2007 22 43 Hindalco30 K R Balasubramaniam Head- Wadi Project 3,184,891 BSc.Engg 1-Dec-1993 36 57 OCM Engineering31 K Ravindran* Director Finance & Controlling 3,676,335 BCom, FCA, 1-Oct-1992 36 61 Flender Macneill

Gears Ltd32 K R Kulkarni Head - Process Control - SW 2,633,732 BSc. BE(Chem) 3-Jan-1977 33 60 Nil33 K S Sharma Head Powerhouse 2,408,527 BE /B Tech 12-Dec-1981 28 55 M/S Sirpur Paper

Mills Ltd34 K Narayana Rao Head - Environment Mgmt 3,154,678 M.Tech 3-Dec-1993 27 51 Voltas Ltd35 Ketan Pandit* Head Central Logistics 1,563,146 BE, MMS 26-Mar-2007 16 43 Nil36 Kuldeep Verma* Head Product Innovation & Development 2,453,691 BCom, MBA, 15-Dec-1980 29 52 Nil37 M V Sitaramaiah* Procurment Coordinator-Opns. 2,641,973 MSc (Tech) 6-Aug-1980 35 60 Regional Research

Laboratory38 M.K. Mishra Director Lakheri Plant 4,371,526 B.E Mechanical 10-Feb-1985 25 52 Lakshmi Cement39 Manoj Jindal Head Plant Operations 2,461,784 BE /B Tech 1-Mar-2006 18 44 CCI Charkhi Dadri40 M G Damle Head - Geological Support 3,003,563 Msc,Bsc 13-Sep-1976 33 55 Nil41 N Keshav Director - Kolar Plant 2,835,547 Be /B Tech 27-Jul-1984 25 48 Nil42 Narinder Kumar Chibber Head Plant Operations 2,824,742 BSc (Physics) 1-feb-1971 38 60 Nil43 Naushad Noorani Director - Organisation Development 3,165,910 B.Com/ MMS 1-Jul-2008 22 45 Voltas Ltd44 Naveen Chadha Head - Operational Support 6,866,563 Bsc.engg, 3-Apr-1972 38 61 Nil45 Nilesh Likhite Head Regional Audit 2,454,389 B.Com, ACA, Graduate 15-Oct-2008 16 39 Reliance Industry Ltd.

CWA, CISA, DISA46 P M Phadnis Sales Head - Pune 2,418,129 BSc, PGDMM, PGDIB 14-jun-1995 21 42 Spartek Ceramics47 P N Iyer Director - Logistics and Mic B 6,286,716 B.Com., Diploma in 2-Jan-2009 32 54 Holcim

Rail Transport Management (Bangladesh) Ltd.& PGDBA

48 P R Majumdar* Head-product Innovation & Devp 1,653,613 BE /B Tech 16-Jul-2009 22 48 DevelopmentConsultant Pvt. Ltd.

49 P K Shrivastava Head Plant Operations 2,530,168 Diploma in 16-Apr-1985 28 53 NMDCMining Engineering

50 Paramjit Pabby* Chief People Officer 3,807,888 B Com, PGDPM 11-Feb-2005 34 55 Piaggio Ltd. Pune

36

Sr. Name Designation & Remuneration Qualifications Date of Total Age LastNo. Nature Of Duties Gross Commencement Experience in Employment

Rs. of Employment (Years) Years51 R B S Bir Head BCCI 3,026,497 BTech, PGDM, 3-Mar-1997 29 56 Rajinder Steel Ltd52 R C Ramnani* Equipment Reliability - Head 2,110,547 DME 29-Sep-1972 37 60 Nil53 R Nandkumar* Head Corporate Communications 1,718,872 B.A. MBA 8-Jun-2009 32 54 Essel Group54 R Padmanabhan Chief Manager - Payroll 2,512,988 BCom,CA 1-Aug-1986 26 49 A. F. Ferguson and

Company55 R S Rathore Director - Bargarh Plant 4,605,554 BE, 1CL-MMC, 2CL-MM 26-Jul-1980 39 53 Rajasthan Ind.

Minerals Dev.Corporation

56 R Vasudevan Thermal Proces Technology-Head 4,812,916 BTech, PGDIE, 7-Dec-1977 33 57 Planning CommissionGovernment ofIndia

57 R Venkatramani Head Pricing & Mkt Intel 3,194,061 BA, MBA, 18-Nov-1982 25 57 Synthetic Foams Ltd58 R K Sinha* Director-Chaibasa Plant 1,851,541 BE 1-Nov-2006 32 53 Rohtas Industries

Ltd59 Raj Srinivasan Head Acct, Consol & Shared Serv 2,510,321 BCom, ICWA, MBA 5-May-1993 19 42 ANCL60 Rajesh Seth Head Central Logistics 4,359,735 BSc, PGDBM 1-Jun-1978 31 53 Nil61 Rajeshkumar L. Sarada Head Business Planning 2,456,098 BA,MBA 2-Sep-2002 18 42 Baltech System Ltd

(Full Time),PG Diploma62 Rajiv Kumar Director Sales - S.W. Region 5,194,935 BCom,MBA 2-Jun-1989 23 47 ABC India Ltd63 Rajiv Prasad Chief Executive - North Region 3,536,275 B.E. Electronics, PGDM-IIM 27-Nov-2009 25 48 Halonix Limited64 Raju J Misra Head Legal Services 3,744,547 B.Sc. LLB 7-Mar-2008 26 49 Essel Group65 Ramit Budhraja Chief Executive - Eastern Region 11,058,620 B.Tech, MBA 1-Jul-2006 23 49 Holcim Ltd66 Ranjan Sachdeva Chief Internal Auditor 6,488,627 BE, PMIR, MBA 11-Apr-2007 19 41 Nestle India67 Ravi Puranik Head - CSR 3,153,504 Pg Diploma,Be /B Tech 4-Sep-2008 26 47 Hindustan Uniliver Ltd.68 Ravinder Mohan Chief Executive -S-W Rgn 10,302,721 BTech, DMS, 2-Aug-1971 40 59 Nil69 S B Singh Director - Tikaria Plant 3,066,489 PHD 3-Dec-1984 28 51 Central Pollution

Control Brd70 S C Sachdeva Head - Capex Projects Mgmt. 9,524,138 BTech, D Mgm Stdy, 1-Aug-1969 41 62 Nil71 S Krishnamurthy Head Treasury 2,563,531 Bsc,Ca 6-Jun-1977 35 60 Bharat Gears Ltd72 S N Junarkar* Plant Head 2,456,736 D Mines,2cl-MMC, 16-Jan-1981 29 56 Nil

BSc. Engg73 S Viswanathan Head Capex Controlling 2,849,343 BCom,CA,AICWA,ACS 6-Mar-1985 27 52 Lovelock Lewis74 S V Datar Head - Chanda Project 3,166,400 BE /B TECH 11-Feb-1985 25 51 Nil75 S A Khadilkar Head Raw Mix & Prod Dev-hd 4,297,603 BSc, MSc Chemistry 1-Apr-1981 32 54 Morarjee Mills

(piramal OrganicChemicals)

76 Sariputta Mishra* Vice President - Coal Business 1,447,593 BCom, ACA 10-Sep-2009 18 46 Moserbaer ProjectsPvt. Ltd.

77 Shakti Arora* Chief Central Procurement Officer 5,290,303 BE MBA 13-Jul-2009 26 49 Mahindra &Mahindra Limited

78 Sharad Kumar Shrivastava Head Plant Operations 2,739,874 MSc 11-May-1982 29 51 Graver & Weil Ltd.79 Sivakumar Gopalan Head Finance & Controlling 2,631,281 BCom,CA 11-Dec-1998 26 51 DCS Limited80 Sudhir Kumar Das Head - Mining Support 3,764,871 B Tech -mining 12-May-1980 30 53 Hindustan Cooper

Ltd81 Sumit Banerjee Managing Director 23,119,195 B.Tech, M.E.(IIT) 1-Jan-2007 31 54 Tube Investment of

India Ltd82 Sunil Gupta Director - Bellary Plant 2,716,891 BE /B Tech 17-Feb-1992 18 40 Nil83 Sunil Nayak Chief Financial Officer 9,030,416 B.Com, LLB, FCS, 14-Aug-2008 26 50 Clariant Chemicals

FCA, AICWA (India) Ltd84 T N Tiwari Chief Public Affairs Officer 7,494,633 BTech, Bsc, 7-Aug-1972 38 61 Nil85 U V Parlikar Director-AFR Business 3,788,010 B Tech, M Tech 1-Mar-1995 27 51 National Peroxide

Ltd86 V Chandrashekar Head Project 2,505,176 BE /B Tech 22-Sep-2008 29 53 Lafarge India

Private Ltd.87 V K Agnihotri Director Sales - Eastern Region 6,101,924 BA, MBA, 9-Feb-1987 23 49 Nil88 Vikram Gupta Head Retail Business 2,489,115 BE /B Tech 17-Feb-1992 19 42 Sun Software System89 Vivek Chawla Director - Kymore Plant 5,465,122 BE Mining 3-Jan-1994 29 49 Grasim Ind. Ltd90 Y V Krishna Kumar Executive Assistant to MD 2,527,338 BE /B Tech,Diploma 29-Aug-2007 13 37 Abhishek Industries

(Others)91 Y V Satyamurthy Project Planning & Monitoring-Head 3,898,580 B Tech, M.E. 17-Aug-1981 28 52 Nil

Notes:- (i) Gross Remuneration shown above is subject to tax and comprises salary, allowances, incentive, monetary value of perquisites, Company’s contribution to Provident Fund andOfficer’s Superannuation Fund.

(ii) In addition to the above remuneration, employees are entitled to Gratuity in accordance with the Company’s rules.(iii) All the employees have adequate experience to discharge the responsibility assigned to them.(iv) The nature of employment in all cases is contractual.(v) *Indicate that the employee was in service only for part of the year.


N.S. SekhsariaMumbai, February 4, 2010 Chairman

37

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38

ANNEXURE ‘C’ TO DIRECTORS’ REPORT (Para 18) (Contd.)

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fop

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llow

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wei

ghte

dav

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form

atio

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(i)

risk

fre

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tere

st r

ate

(ii)

expe

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lif

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(iii)

expe

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vol

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(iv)

expe

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div

iden

ds a

nd

(v)

the

pric

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th

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nde

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shar

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mar

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at t

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tim

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gra

nt

ESO

S 20

01

7.62

N/A

N/A

N/A

39

CORPORATE GOVERNANCE

The Directors present the Company’s report on Corporate Governance for the year endedDecember 31, 2009.

CCCCCompanompanompanompanompany’y’y’y’y’s philosophs philosophs philosophs philosophs philosophy on Cy on Cy on Cy on Cy on Corpororpororpororpororporaaaaate Gote Gote Gote Gote Govvvvvernanceernanceernanceernanceernance

ACC’s philosophy on Corporate Governance is embedded in the rich legacy of ethicalgovernance practices most of which were in place even before they were mandated. Thisstrong sense of values and robust business practices makes your Company one of therespected Companies in the Indian corporate world. Your Company has complied with therequirements of Corporate Governance as laid down under Clause 49 of the ListingAgreement with the Stock Exchanges.

GoGoGoGoGovvvvvernance Strucernance Strucernance Strucernance Strucernance Structurturturturtureeeee

ACC’s Corporate Governance structure is as under:

i. The BoarThe BoarThe BoarThe BoarThe Board of Dird of Dird of Dird of Dird of Dirececececectors -tors -tors -tors -tors - The ACC Board plays a pivotal role in ensuring goodgovernance. Its style of functioning is democratic. The Members are also free to bringup any matter for discussion at the Board Meetings with the permission of theChairman. The Board’s role, functions, responsibility and accountability are clearlydefined. In addition to its primary role of setting corporate strategies and goals andmonitoring corporate performance, it directs and guides the activities of theManagement towards the set goals and seeks accountability with a view to createlong term sustainable growth that translates itself into progress, prosperity and thefulfillment of stakeholders’ aspirations. It also sets standards of corporate behaviour,and ensures compliance with laws and regulations.

ii. The CThe CThe CThe CThe Committee of Dirommittee of Dirommittee of Dirommittee of Dirommittee of Dirececececectors -tors -tors -tors -tors - The Board has constituted the following committeesviz. Audit Committee, Compliance Committee, Compensation Committee andShareholders’ Investor Grievance Committee. Each of these Committees have beenmandated to operate within a given framework.

iii. The Managing CThe Managing CThe Managing CThe Managing CThe Managing Committee -ommittee -ommittee -ommittee -ommittee - This Committee comprises of Managing Director andother senior Executives of the Company who look into the implementation of strategicpolicies laid down by the Board, business processes and day-to-day operationalactivities of the Company.

BBBBBOOOOOARARARARARD OF DID OF DID OF DID OF DID OF DIRRRRRECTECTECTECTECTORORORORORSSSSS

CCCCComposition of the Boaromposition of the Boaromposition of the Boaromposition of the Boaromposition of the Boarddddd

The Board of Directors consists of professionals drawn from diverse fields, who bring in awide range of skills and experience to the Board. The majority of the Directors on theBoard including the Chairman are Non-Executive Directors. More than fifty percent of theBoard comprises of Independent Directors.

The day-to-day management of the Company is conducted by the Managing Directorsubject to the supervision and control of the Board of Directors. The brief profile of yourCompany’s Board of Directors is as under:

40

MrMrMrMrMr. N. S. N. S. N. S. N. S. N. S. Sekhsaria (. Sekhsaria (. Sekhsaria (. Sekhsaria (. Sekhsaria (Chairman): Chairman): Chairman): Chairman): Chairman): Mr. N. S. Sekhsaria is a doyen of the Indian CementIndustry and one of the most respected business personalities in India. In a career spanningover 30 years, he has introduced new standards in management, marketing, efficiencyand corporate social responsibility to an industry he has helped transform.

Mr. Sekhsaria is the Founder-Promoter and current Chairman of Ambuja Cements Limited.Mr. Sekhsaria was invited to join the ACC Board in 1999 and was appointed DeputyChairman from January 2000. He took over as its Chairman in January 2006.

Mr. Sekhsaria built Ambuja Cement into a benchmark for Indian Industry. His acumen asan entrepreneur and technocrat turned Ambuja into the most efficient and profitablecement company in India and redefined industry practices by changing the perception ofcement from a commodity to a branded product. Mr. Sekhsaria championed communitydevelopment by founding the Ambuja Cement Foundation and guiding it into a model ofexcellence in social responsibility.

With his considerable wealth of experience, Mr. Sekhsaria brings immense value to theBoard of ACC. Under his leadership, ACC has achieved significant improvements in theareas of project management, logistics and overall cost-competitiveness. The impact ofthis guidance shows in the high growth trajectory ACC has experienced since 1999.

MrMrMrMrMr. P. P. P. P. Paul Hugenaul Hugenaul Hugenaul Hugenaul Hugentobler (Deputy Chairman):tobler (Deputy Chairman):tobler (Deputy Chairman):tobler (Deputy Chairman):tobler (Deputy Chairman): Mr. Paul Hugentobler obtained a degree inCivil Engineering from the ETH, Zurich, and a degree in Economic Science from theUniversity of St. Gallen. He joined Holcim Group Support Limited in 1980 as ProjectManager and in 1994 was appointed as Area Manager for Holcim Limited. From 1999until 2000, he also served as CEO of Siam City Cement, Bangkok, Thailand. He has been aMember of the Executive Committee since January 1, 2002 with the responsibility forSouth Asia and ASEAN excluding Philippines. He has been appointed as Vice Chairman ofAmbuja Cements Limited with effect from September 24, 2009.

MrMrMrMrMr. Sumit. Sumit. Sumit. Sumit. Sumit Banerjee (Managing Dir Banerjee (Managing Dir Banerjee (Managing Dir Banerjee (Managing Dir Banerjee (Managing Dirececececector):tor):tor):tor):tor): Mr. Sumit Banerjee is B.Tech. (Hons) inMechanical Engineering from IIT Kharagpur and Fellow of the Institute of Engineers (F.I.E.).Mr. Banerjee was the Managing Director of Tube Investments of India Limited, prior to hisjoining ACC. Mr. Banerjee has also served with Larsen & Toubro (L&T) Limited during theperiod 1979 to 1990. Thereafter, he has worked in various senior positions with Indal/Hindalco from 1990 to 2005. As Project Manager, he was responsible for implementationof Indal’s Power Project at Hirakud. He, thereafter, took over as Works Manager of Indal’sSheet Rolling Plant at Belur and was responsible for its turnaround. In 2001, he waselevated as Chief Executive of sheet business, Indal’s largest strategic business unit. From2004, as President–Foils & Wheels, Mr. Banerjee headed the integrated Foil/Packagingand Wheel Businesses of Hindalco and Indal.

MrMrMrMrMr. S. S. S. S. S. M. P. M. P. M. P. M. P. M. Palia:alia:alia:alia:alia: B. Com., LL. B, CAIIB, CIIB (London). Mr. Palia is a Development Banker byprofession. He was with IDBI from 1964-1989 during which period he held variousresponsible positions including that of an Executive Director. He has also acted as anAdvisor to Industrial Bank of Yemen, Saana (North Yemen) and Industrial Bank of Sudan,Khartoum (Sudan) under World Bank assistance programmes. He was also the Managing

41

Director of Kerala Industrial & Technical Consultancy Organisation Limited, set up to provideconsultancy service to micro enterprises and small and medium enterprises. He is a Directoron the Boards of leading companies viz. Tata Steel Limited, Tata Motors Limited, BombayDyeing & Manufacturing Co. Limited. He is Chairman-Emeritus of Rashtriya Gramin VikasNidhi and a Trustee of Bombay Community Public Trust.

MrMrMrMrMr. Nar. Nar. Nar. Nar. Naresh Chandresh Chandresh Chandresh Chandresh Chandra:a:a:a:a: Mr. Naresh Chandra is a post graduate in mathematics fromAllahabad University. He was a distinguished member of the Indian Administrative Service(IAS) and former Cabinet Secretary to the Government of India. He has held variousimportant positions including that of Governor of the State of Gujarat and India’sAmbassador to the United States of America. He has served on numerous importantCommittees including as Chairman of Corporate Governance Committee instituted bythe Government of India. Mr. Naresh Chandra, is Chairman of Committee of Civil AviationPolicy, Ministry of Civil Aviation. He is a Director on the Boards of various companies. Inthe year 2007, he was honoured with Padma Vibhushan by the Government of India.

MrMrMrMrMr. Mark. Mark. Mark. Mark. Markus Akus Akus Akus Akus Akermann:ermann:ermann:ermann:ermann: Mr. Markus Akermann is the Chief Executive Officer and memberof the Board of Directors of Holcim Limited. He obtained a degree in Business Economicsfrom the University of St. Gallen in 1973 and studied Economic and Social Sciences at theUniversity of Sheffield, U.K. Mr. Akermann began his professional career in 1975 with theformer Swiss Bank Corporation. In 1978, he moved to Holcim where he was active in anumber of roles including Area Manager for Latin America and Holcim Trading. In 1993,he was appointed to the Executive Committee with responsibility for Latin America andinternational trading activities. On January 1, 2002, he was appointed Chief ExecutiveOfficer and at the Annual General Meeting in 2002, he was elected to the Board of Directorsof Holcim Limited.

MrMrMrMrMr. M. L. M. L. M. L. M. L. M. L. Narula:. Narula:. Narula:. Narula:. Narula: B.Sc. Engineering (Electrical). Graduate from Punjab University andFellow, Institute of Engineers. Mr. Narula has been closely associated with the Companyfor over 45 years in various senior positions in plant and Corporate Office including thatof Wholetime Director since April 1996 and was the Managing Director of the Companyfrom December 1, 2002 till his retirement on March 31, 2007. Mr. Narula has vastexperience and in depth knowledge of the Cement Industry. He is presently a Non-ExecutiveDirector on the Company’s Board with effect from April 1, 2007. Mr. Narula is also aDirector on the Boards of other Indian and Foreign Companies and Senior Advisor toHolcim Group Services, Zurich, Switzerland.

MrMrMrMrMr. D. D. D. D. D. K. Mehr. K. Mehr. K. Mehr. K. Mehr. K. Mehrotrotrotrotrotra:a:a:a:a: B. Sc. (Honours). Mr. Mehrotra is the Managing Director of LifeInsurance Corporation of India (LIC) and is also a director on the Board of Directors ofsome of LIC’s subsidiary companies within and outside India and other public limitedcompanies. He represents LIC on the ACC Board.

MrMrMrMrMr. R. A. Shah:. R. A. Shah:. R. A. Shah:. R. A. Shah:. R. A. Shah: Mr. R.A. Shah is a leading Solicitor and a Senior Partner of M/s. CrawfordBayley and Co., a firm of Advocates & Solicitors. He specializes in a broad spectrum ofcorporate laws in general, with special focus on Foreign Investments, Joint Ventures,Technology and Licence Agreement, Intellectual Property Rights, Mergers and Acquisitions,Industrial Licensing, Anti Trust Laws, Company Law and Taxation. He is a Director on the

42

Board of various public limited companies and is Chairman of the Board in many of thesecompanies. He is also on the Audit Committee of some of the companies on which he is aDirector.

MrMrMrMrMr. Shailesh Haribhakti:. Shailesh Haribhakti:. Shailesh Haribhakti:. Shailesh Haribhakti:. Shailesh Haribhakti: Fellow Chartered Accountant. Mr. Shailesh Haribhakti is theExecutive Chairman of BDO Consulting Pvt. Ltd. He served a three year term on theStandards Advisory Council of the International Accounting Standards Board. He is aCommittee Member of Futures & Options segment of National Stock Exchange of IndiaLimited and a Member of the SEBI Committee on Disclosures and Accounting Standards.He serves as Member of Managing Committees of ASSOCHAM and IMC and CorporateGovernance Committees of ASSOCHAM and CII and is Chairman of the Global WarmingCommittee of IMC. He is on the Board of Directors of several listed and private companies.

Ms. Shikha Sharma (rMs. Shikha Sharma (rMs. Shikha Sharma (rMs. Shikha Sharma (rMs. Shikha Sharma (resigned wesigned wesigned wesigned wesigned w.e.e.e.e.e.f.f.f.f.f. Ma. Ma. Ma. Ma. May 26, 2009):y 26, 2009):y 26, 2009):y 26, 2009):y 26, 2009): Ms. Shikha Sharma was the ManagingDirector and Chief Executive Officer of ICICI Prudential Life Insurance Company. ICICIPrudential was amongst the first private sector companies in India to be awarded a lifelicense in December 2000, and since its inception the Company has established itself asIndia’s leading private life insurer, offering a complete range of products to meet thevarying needs of the Indian customer. Ms. Sharma, completed her Masters of BusinessAdministration from Indian Institute of Management – Ahmedabad. She began her careerwith ICICI, one of India’s largest financial service providers, in 1980. She has beeninstrumental in setting up various group businesses for the company, including investmentbanking and retail finance. Consequent upon her appointment as Managing Director ofAxis Bank, she has resigned from the Board of Directors.

MrMrMrMrMr. Onne v. Onne v. Onne v. Onne v. Onne van der an der an der an der an der WWWWWeijde (reijde (reijde (reijde (reijde (resigned wesigned wesigned wesigned wesigned w.e.e.e.e.e.f.f.f.f.f. Oc. Oc. Oc. Oc. October 28, 2009):tober 28, 2009):tober 28, 2009):tober 28, 2009):tober 28, 2009): Mr. Onne van der Weijde,has obtained a Bachelor’s Degree in Economics and Accounting from The Hague University,The Netherlands and a Master’s Degree in Business Administration (MBA) from theUniversity of Bradford, U.K. He has an overall work experience of twenty-five years andhas been in the services of Holcim Limited, Switzerland with effect from April 1996. Duringhis service tenure with Holcim Limited, he has held senior positions and has a richexperience in Taxation, Business Planning and Finance. Mr. Onne van der Weijde wasappointed Chief Financial Officer of ACC Limited from May 2006 to October 2008. He is aDirector on various Indian and Foreign Companies. Mr. Onne van der Weijde was appointedon the Board of Directors with effect from January 9, 2009. Consequent upon hisappointment as CEO-Designate with effect from November 1, 2009 and as Chief ExecutiveOfficer from May 1, 2010 of Ambuja Cements Limited, Mr. Onne van der Weijde resignedfrom the ACC Board with effect from October 28, 2009.

MrMrMrMrMr. K. K. K. K. Kuldip Kuldip Kuldip Kuldip Kuldip Kaurauraurauraura (a (a (a (a (appoinappoinappoinappoinappointed wted wted wted wted w.e.e.e.e.e.f.f.f.f.f. Oc. Oc. Oc. Oc. October 28, 2009):tober 28, 2009):tober 28, 2009):tober 28, 2009):tober 28, 2009): Mr. Kuldip Kaura holds a degreein Mechanical Engineering, BE (Hons.) from Birla Institute of Technology & Science, Pilaniand had also attended various Executive Education Programmes at London Business Schooland Swedish Institute of Management, Stockholm. Mr. Kaura has rich experience in leadingbusinesses and companies in diverse sectors such as power, natural resources, metals,mining etc. and has deep understanding of Corporate Governance, brand building andSustainable Development in India, U.K. and U.S. Regulatory Environment. He is presentlyAdvisor with Vedanta Resources Plc.

43

The details in regard to attendance of Directors at Board Meetings / Shareholders Meetings, the number ofDirectorship(s) held in Indian public limited companies and the position of Membership / Chairmanship of AuditCommittee/ Shareholders’/Investors’ Grievance Committee in such Indian public limited companies are givenbelow:

Name of the DirName of the DirName of the DirName of the DirName of the Dirececececectortortortortor CCCCCaaaaategortegortegortegortegoryyyyy NoNoNoNoNo. of. of. of. of. of AAAAAttendancettendancettendancettendancettendance Number ofNumber ofNumber ofNumber ofNumber of CCCCCommittee(sommittee(sommittee(sommittee(sommittee(s)))))BoarBoarBoarBoarBoarddddd aaaaattttt the the the the the DirDirDirDirDirececececectorship(storship(storship(storship(storship(s))))) positionpositionpositionpositionposition

MeetingsMeetingsMeetingsMeetingsMeetings AAAAAGM heldGM heldGM heldGM heldGM held held in Indianheld in Indianheld in Indianheld in Indianheld in Indian (including A(including A(including A(including A(including ACCCCCC)C)C)C)C)aaaaattendedttendedttendedttendedttended on April 8,on April 8,on April 8,on April 8,on April 8, public limitedpublic limitedpublic limitedpublic limitedpublic limited

out of 6out of 6out of 6out of 6out of 6 20092009200920092009 cccccompaniesompaniesompaniesompaniesompaniesMeetingsMeetingsMeetingsMeetingsMeetings (including A(including A(including A(including A(including ACCCCCC)C)C)C)C)

heldheldheldheldheld

MemberMemberMemberMemberMember ChairmanChairmanChairmanChairmanChairman

Mr N S SekhsariaMr N S SekhsariaMr N S SekhsariaMr N S SekhsariaMr N S Sekhsaria Non-Executive 5 Yes 3 - -(((((Chairman)Chairman)Chairman)Chairman)Chairman)

Mr PMr PMr PMr PMr Paul Hugenaul Hugenaul Hugenaul Hugenaul Hugentoblertoblertoblertoblertobler Non-Executive 6 Yes 3 2 1(Deputy Chairman)(Deputy Chairman)(Deputy Chairman)(Deputy Chairman)(Deputy Chairman)

Mr Sumit BanerjeeMr Sumit BanerjeeMr Sumit BanerjeeMr Sumit BanerjeeMr Sumit Banerjee Executive 6 Yes 5 2 -(Managing Dir(Managing Dir(Managing Dir(Managing Dir(Managing Dirececececector)tor)tor)tor)tor)

Mr S M PMr S M PMr S M PMr S M PMr S M Paliaaliaaliaaliaalia Non-Executive/ 5 Yes 7 4 3Independent

Mr NarMr NarMr NarMr NarMr Naresh Chandresh Chandresh Chandresh Chandresh Chandraaaaa Non-Executive/ 6 Yes 11 8 1Independent

Mr MarkMr MarkMr MarkMr MarkMr Markus Akus Akus Akus Akus Akermannermannermannermannermann Non-Executive 4 No 2 - -

Mr M L NarulaMr M L NarulaMr M L NarulaMr M L NarulaMr M L Narula Non-Executive 5 Yes 2 1 -

Mr D K MehrMr D K MehrMr D K MehrMr D K MehrMr D K Mehrotrotrotrotrotraaaaa Non-Executive/ 2 No 4 - -(LIC Nominee)(LIC Nominee)(LIC Nominee)(LIC Nominee)(LIC Nominee) Independent

Mr R A ShahMr R A ShahMr R A ShahMr R A ShahMr R A Shah Non-Executive/ 6 Yes 15 4 5Independent

Mr Shailesh HaribhaktiMr Shailesh HaribhaktiMr Shailesh HaribhaktiMr Shailesh HaribhaktiMr Shailesh Haribhakti Non-Executive/ 6 Yes 15 5 5Independent

Ms Shikha SharmaMs Shikha SharmaMs Shikha SharmaMs Shikha SharmaMs Shikha Sharma Non-Executive/ 2 out of 3 Yes 3 - -(upto da(upto da(upto da(upto da(upto date ofte ofte ofte ofte of Independentrrrrresignaesignaesignaesignaesignation i.etion i.etion i.etion i.etion i.e.....

26.05.2009)26.05.2009)26.05.2009)26.05.2009)26.05.2009) -

Mr Onne vMr Onne vMr Onne vMr Onne vMr Onne van der an der an der an der an der WWWWWeijdeeijdeeijdeeijdeeijde Non-Executive 4 out of 4 Yes 5 1 1(upto da(upto da(upto da(upto da(upto date ofte ofte ofte ofte of

rrrrresignaesignaesignaesignaesignation i.etion i.etion i.etion i.etion i.e.....

28.10.2009)28.10.2009)28.10.2009)28.10.2009)28.10.2009)

Mr KMr KMr KMr KMr Kuldip Kuldip Kuldip Kuldip Kuldip Kauraurauraurauraaaaa Non-Executive/ 2 out of 2 N.A. 2 1 -(fr(fr(fr(fr(from 28.10.2009)om 28.10.2009)om 28.10.2009)om 28.10.2009)om 28.10.2009) Independent

The Company has complied in full with Clause 49 of the Listing Agreement with regard to information beingplaced before the Board of Directors.

44

Details of BoarDetails of BoarDetails of BoarDetails of BoarDetails of Board Meetings held during the Fd Meetings held during the Fd Meetings held during the Fd Meetings held during the Fd Meetings held during the Financial inancial inancial inancial inancial YYYYYear and the number of Direar and the number of Direar and the number of Direar and the number of Direar and the number of Dirececececectorstorstorstorstorsprprprprpresenesenesenesenesent:t:t:t:t:

SerialSerialSerialSerialSerial DaDaDaDaDates on which the Boartes on which the Boartes on which the Boartes on which the Boartes on which the Boarddddd TTTTTotal Strotal Strotal Strotal Strotal Strengthengthengthengthength NoNoNoNoNo. of Dir. of Dir. of Dir. of Dir. of DirececececectorstorstorstorstorsNoNoNoNoNo..... Meetings wMeetings wMeetings wMeetings wMeetings wererererere helde helde helde helde held of the Boarof the Boarof the Boarof the Boarof the Boarddddd PrPrPrPrPresenesenesenesenesenttttt

1. January 9, 2009 12 11

2. February 5, 2009 12 09

3. April 22, 2009 12 10

4. July 23, 2009 11 11

5. October 28, 2009 11 09

6. December 17, 2009 11 09

CCCCCOOOOOMMITTMMITTMMITTMMITTMMITTEES OF EES OF EES OF EES OF EES OF TTTTTHHHHHE BE BE BE BE BOOOOOARARARARARDDDDD

AAAAAudituditudituditudit C C C C Committee – (ommittee – (ommittee – (ommittee – (ommittee – (CCCCConstituted in 1986)onstituted in 1986)onstituted in 1986)onstituted in 1986)onstituted in 1986)

The Audit Committee acts as a link between the statutory and internal auditors and theBoard of Directors.

The terms of reference of the Audit Committee are as per the guidelines set out in theListing Agreement with the Stock Exchanges read with Section 292(A) of the CompaniesAct, 1956. These broadly include approval of Annual Internal Audit Plan, review of thefinancial reporting system, internal control systems, discussions on quarterly, half yearlyand annual financial results, interaction with Statutory Internal & Cost Auditors,recommendation for appointment of Statutory and Cost Auditors and their remuneration,Business Risk Management and its mitigation plan, Management Discussion & Analysisof the Company’s operations, Internal Audit Report, Appointment, Removal and terms ofremuneration of Chief Internal Auditor, significant related party transactions. The Companyhas framed the Audit Committee Charter for the purpose of effective compliance of Clause49 of the Listing Agreement.

The Members of the Audit Committee comprised of the following:

Name of the MemberName of the MemberName of the MemberName of the MemberName of the Member CCCCCaaaaategortegortegortegortegoryyyyy QualificaQualificaQualificaQualificaQualifications rtions rtions rtions rtions requirequirequirequirequired to be Membered to be Membered to be Membered to be Membered to be Member

Mr Shailesh Haribhakti, Non-Executive/ Has the requisite accounting andChairman Independent financial management expertise.

Mr S M Palia Non-Executive/ Has the requisite accounting andIndependent financial management expertise.

Mr Naresh Chandra, Non-Executive/ Is financially literate.IAS (Retd.) Independent

Mr Paul Hugentobler Non-Executive Is financially literate.

The Managing Director, Chief Financial Officer, Chief Internal Auditor, Chief Executives atthe Regions and the representatives of the Statutory Auditors are permanent invitees tothe Audit Committee Meetings. The representative of the Cost Auditor attends such of

45

those Meetings of the Audit Committee where matters relating to the Cost Audit Reportare discussed. The Company Secretary is the Secretary of the Committee. The InternalAudit Department headed by the Chief Internal Auditor functions independently and theChief Internal Auditor reports to the Chairman of the Audit Committee.

The representative of Holcim group’s, Internal Audit Department also attend AuditCommittee Meetings upon invitation from the Chairman, Audit Committee and providetheir guidance on international best practices in Internal Audit.

The dates on which the Audit Committee Meetings were held and the attendance of theMembers at the said Meetings are as under:

S rS rS rS rS r..... D aD aD aD aD ates on which Ates on which Ates on which Ates on which Ates on which Audituditudituditudit AAAAAttendance rttendance rttendance rttendance rttendance re ce ce ce ce cororororord of the Membersd of the Membersd of the Membersd of the Membersd of the MembersN oN oN oN oN o..... CCCCCommittee Meetings wommittee Meetings wommittee Meetings wommittee Meetings wommittee Meetings wererererereeeee M rM rM rM rM r. Shailesh. Shailesh. Shailesh. Shailesh. Shailesh M rM rM rM rM r. S. S. S. S. S. M.. M.. M.. M.. M. M rM rM rM rM r. Nar. Nar. Nar. Nar. Naresheshesheshesh M rM rM rM rM r. P. P. P. P. Paulaulaulaulaul

heldheldheldheldheld HaribhaktiHaribhaktiHaribhaktiHaribhaktiHaribhakti PPPPPaliaaliaaliaaliaalia ChandrChandrChandrChandrChandraaaaa HugenHugenHugenHugenHugentoblertoblertoblertoblertobler

1. February 4, 2009 Attended Attended Attended Attended

2. April 21, 2009 Attended Leave of Attended AttendedAbsence

3. July 22, 2009 Attended Attended Attended Attended

4. October 27, 2009 Attended Leave of Attended AttendedAbsence

5. December 16, 2009 Attended Attended Attended Attended

The Company has implemented a well structured Internal Audit Control Systems to ensurereliability of financial and operational information and statutory/regulatory compliances.

SharSharSharSharShareholders’eholders’eholders’eholders’eholders’ / In / In / In / In / Invvvvvestors’estors’estors’estors’estors’ Grie Grie Grie Grie Grievvvvvance Cance Cance Cance Cance Committee - (ommittee - (ommittee - (ommittee - (ommittee - (CCCCConstituted in 1962)onstituted in 1962)onstituted in 1962)onstituted in 1962)onstituted in 1962)

The Shareholders’/Investors’ Grievance Committee deals with various matters relatingto:-

• transfer / transmission of shares / debentures,

• issue of duplicate share certificate,

• issue and allotment of rights / bonus shares / shares against Employee Stock Options,

• review of shares dematerialised and all other related matters,

• monitoring expeditious redressal of investors’ grievances,

• non receipt of Annual Report and declared dividend,

• all other matters related to shares / debentures.

The Shareholders’ / Investors’ Grievance Committee comprises of the following persons:

Mr Paul Hugentobler (Chairman)

Mr M L Narula

Mr Sumit Banerjee

46

The dates on which the Committee Meetings were held and the attendance of theMembers at the said Meetings are as under:

SrSrSrSrSr..... DaDaDaDaDates on which thetes on which thetes on which thetes on which thetes on which the AAAAAttendance rttendance rttendance rttendance rttendance recececececororororord of the Membersd of the Membersd of the Membersd of the Membersd of the MembersNoNoNoNoNo..... SharSharSharSharShareholders’/Ineholders’/Ineholders’/Ineholders’/Ineholders’/Invvvvvestorestorestorestorestor Mr PMr PMr PMr PMr Paulaulaulaulaul Mr M LMr M LMr M LMr M LMr M L Mr SumitMr SumitMr SumitMr SumitMr Sumit

GrieGrieGrieGrieGrievvvvvance Cance Cance Cance Cance Committeeommitteeommitteeommitteeommittee HugenHugenHugenHugenHugentoblertoblertoblertoblertobler NarulaNarulaNarulaNarulaNarula BanerjeeBanerjeeBanerjeeBanerjeeBanerjeeMeetings wMeetings wMeetings wMeetings wMeetings wererererere helde helde helde helde held

1. February 5, 2009 Attended Attended Attended

2. April 22, 2009 Attended Attended Attended

3. July 23, 2009 Attended Attended Attended

4. October 28, 2009 Attended Leave of AttendedAbsence

5. December 17, 2009 Attended Attended Attended

Company Secretary is the Compliance Officer as per the Listing Agreement.

During the year ended December 31, 2009, 146 complaints were received fromshareholders, all of which have been attended/resolved as of date. No investor grievancesremained unattended/pending for more than thirty days as on December 31, 2009. TheCompany had ten share transfers pending as on December 31, 2009. These were transferslodged after December 28, 2009.

CCCCCompensaompensaompensaompensaompensation Ction Ction Ction Ction Committee - (ommittee - (ommittee - (ommittee - (ommittee - (CCCCConstituted in 1993)onstituted in 1993)onstituted in 1993)onstituted in 1993)onstituted in 1993)

The terms of reference of the Compensation Committee, inter alia consists of reviewingthe overall compensation policy, service agreement and other employment conditions ofthe Managing Director with a view to retaining and motivating the best managerial talents.In determining the remuneration package of the Managing Director, it evaluates theremuneration paid by comparable organizations and thereafter makes itsrecommendations to the ACC Board in this regard. It also reviews the performance of theManaging Director and recommends to the ACC Board the quantum of annual increment/performance incentive. The Compensation Committee also monitors the implementationof existing Employees’ Stock Option Schemes.

The Compensation Committee comprises of the following persons:

Mr N S Sekhsaria (Chairman)

Mr Paul Hugentobler


The dates on which the Compensation Committee Meetings were held and the attendanceof the Members at the said Meetings are as under:

SrSrSrSrSr..... DaDaDaDaDates on whichtes on whichtes on whichtes on whichtes on which AAAAAttendance rttendance rttendance rttendance rttendance recececececororororord of the Membersd of the Membersd of the Membersd of the Membersd of the MembersNoNoNoNoNo..... CCCCCompensaompensaompensaompensaompensation Ction Ction Ction Ction Committeeommitteeommitteeommitteeommittee Mr N SMr N SMr N SMr N SMr N S Mr PMr PMr PMr PMr Paulaulaulaulaul Mr ShaileshMr ShaileshMr ShaileshMr ShaileshMr Shailesh

Meetings wMeetings wMeetings wMeetings wMeetings wererererere helde helde helde helde held SekhsariaSekhsariaSekhsariaSekhsariaSekhsaria HugenHugenHugenHugenHugentoblertoblertoblertoblertobler Haribhakti Haribhakti Haribhakti Haribhakti Haribhakti

1. February 4, 2009 Attended Attended Attended

47

CCCCCompliance Compliance Compliance Compliance Compliance Committee (Non Mandaommittee (Non Mandaommittee (Non Mandaommittee (Non Mandaommittee (Non Mandatortortortortory Cy Cy Cy Cy Committee) – Committee) – Committee) – Committee) – Committee) – Constituted on Januaronstituted on Januaronstituted on Januaronstituted on Januaronstituted on January 31,y 31,y 31,y 31,y 31,20082008200820082008

The Compliance Committee was constituted to regularly review the status of Company’sCompliance with various Laws and Regulations as well as to understand the implicationsof major legislative and regulatory developments that may significantlyaffect the Company, and report the same to the Board. It reviews the Company’s readinessto comply with Competition Law and also monitors the developments in importantlegal cases.

As of December 31, 2009, the Compliance Committee of the Board comprised of thefollowing Members:

Mr. R. A. Shah (Chairman)

Mr. Paul Hugentobler

Mr. Naresh Chandra

Mr. Shailesh Haribhakti

Mr. Sumit Banerjee

Mr. Onne van der Weijde – Appointed w.e.f. February 5, 2009 &Resigned w.e.f. October 28, 2009

The dates on which the Compliance Committee Meetings were held and the attendanceof the Members at the said Meetings are as under:

SrSrSrSrSr..... DaDaDaDaDates on whichtes on whichtes on whichtes on whichtes on which AAAAAttendance rttendance rttendance rttendance rttendance recececececororororord of the Membersd of the Membersd of the Membersd of the Membersd of the Members

N oN oN oN oN o..... CCCCComplianceomplianceomplianceomplianceompliance

CCCCCommitteeommitteeommitteeommitteeommittee M rM rM rM rM r. R. A.. R. A.. R. A.. R. A.. R. A. M rM rM rM rM r. Nar. Nar. Nar. Nar. Naresheshesheshesh M rM rM rM rM r. Shailesh. Shailesh. Shailesh. Shailesh. Shailesh M rM rM rM rM r. P. P. P. P. Paulaulaulaulaul M rM rM rM rM r. Sumit. Sumit. Sumit. Sumit. Sumit M rM rM rM rM r. Onne. Onne. Onne. Onne. Onne

Meetings wMeetings wMeetings wMeetings wMeetings we re re re re reeeee ShahShahShahShahShah ChandrChandrChandrChandrChandraaaaa HaribhaktiHaribhaktiHaribhaktiHaribhaktiHaribhakti HugenHugenHugenHugenHugentoblertoblertoblertoblertobler BanerjeeBanerjeeBanerjeeBanerjeeBanerjee vvvvvan deran deran deran deran der

heldheldheldheldheld WWWWWeijdeeijdeeijdeeijdeeijde

1. February 4, 2009 Attended Attended Attended Attended Attended N.A.

2. April 21, 2009 Attended Attended Attended Attended Attended Attended

3. July 23, 2009 Attended Attended Attended Attended Attended Attended

4. October 27, 2009 Attended Attended Attended Attended Attended Leave of

Absence

RRRRREMEMEMEMEMUUUUUNNNNNERERERERERAAAAATTTTTION PION PION PION PION POLICOLICOLICOLICOLICYYYYY

RRRRRemuneremuneremuneremuneremuneraaaaation Ption Ption Ption Ption Policy folicy folicy folicy folicy for Managing Diror Managing Diror Managing Diror Managing Diror Managing Dirececececectortortortortor:::::

The remuneration structure for the Managing Director comprises of salary, performanceincentive, perquisites and allowances, contributions to Provident Fund, SuperannuationFund and Gratuity. Subject to the approval of the Board and of the Company in GeneralMeeting and such other approvals as may be necessary, the Managing Director is paid

48

remuneration as per the Agreement entered into between him and the Company. Themain features of the Agreement are as under:

MrMrMrMrMr. Sumit. Sumit. Sumit. Sumit. Sumit Banerjee, Managing Dir Banerjee, Managing Dir Banerjee, Managing Dir Banerjee, Managing Dir Banerjee, Managing Dirececececectortortortortor

PPPPPeriod oferiod oferiod oferiod oferiod of From 01.04.2007 to 31.12.2011AppoinAppoinAppoinAppoinAppointmentmentmentmentmenttttt as as as as asManaging DirManaging DirManaging DirManaging DirManaging Dirececececectortortortortor

SalarSalarSalarSalarSalary Gry Gry Gry Gry Gradeadeadeadeade Rs. 6,00,000 - Rs. 40,000 - Rs. 9,00,000

PPPPPerererererquisitesquisitesquisitesquisitesquisites Up to 125% of the annual salary

Other BenefitsOther BenefitsOther BenefitsOther BenefitsOther Benefits Contribution to Provident Fund, Superannuation Fund and GratuityFund as per Agreement between Mr. Banerjee and the Company

PPPPPerererererffffformanceormanceormanceormanceormance Up to an amount equivalent to a maximum of 30% of his grossIncenIncenIncenIncenIncentivtivtivtivtiveeeee annual salary

MinimumMinimumMinimumMinimumMinimum Where in the financial years during the currency of the tenure ofRRRRRemuneremuneremuneremuneremuneraaaaationtiontiontiontion the Managing Director, the Company has no profits or its profits are

inadequate, the Company will pay remuneration by way of salaryand perquisites as specified above, subject to requisite approvals beingobtained

Notice PNotice PNotice PNotice PNotice Period &eriod &eriod &eriod &eriod & The Agreement may be terminated by either party giving the otherSeSeSeSeSevvvvverererererance Fance Fance Fance Fance Feeseeseeseesees party three months notice in writing of such termination or the

Company paying three months salary in lieu of the notice

RRRRRemuneremuneremuneremuneremuneraaaaation Ption Ption Ption Ption Policy folicy folicy folicy folicy for Non Eor Non Eor Non Eor Non Eor Non Exxxxxecutivecutivecutivecutivecutive Dire Dire Dire Dire Dirececececectorstorstorstorstors

The Non Executive Directors are paid Sitting Fees of Rs. 20,000/- for each meeting of theBoard/Committee of the Board attended by them. The total amount of sitting fees paidduring the financial year ended December 31, 2009 was Rs. 22.40 lakhs.

In addition to the Sitting Fees, the Non Executive Directors are entitled to receiveCommission not exceeding one percent of the net profits of the Company as computed inthe manner provided by Section 198(1) of the Companies Act, 1956. The payment ofCommission to Non Executive Directors has been approved by the shareholders at the70th Annual General Meeting held on April 12, 2006. For the year ended December 31,2009, the Board of Directors has approved the payment of commission of Rupees NineLakhs (pro rata thereof if appointed for part of the year) to each of the Non ExecutiveDirector. The Board has further approved the payment of an additional commission ofRupees Seven Lakhs (or pro rata thereof if appointed for part of the year) to theNon Executive Directors on the Audit Committee/Compliance Committee subject to thecondition that the total commission paid/payable to any one of the Directors shall notexceed Rupees Sixteen Lakhs.

The role of Non Executive Directors and their involvement as Members of the Board andits Committees has undergone significant qualitative changes, pursuant to more stringentaccounting standards and corporate governance norms. Further, in view of the scale andcomplexity of the Company’s operations, they are required to provide more time andattention for guiding the Company’s Business. Accordingly, the Board has approved on theabove quantum of commission to the Non Executive Directors. The commission is beingpaid on a uniform basis to reinforce the principle of collective responsibility.

49

Details of RDetails of RDetails of RDetails of RDetails of Remuneremuneremuneremuneremuneraaaaation paid/tion paid/tion paid/tion paid/tion paid/papapapapayyyyyable to Dirable to Dirable to Dirable to Dirable to Dirececececectors ftors ftors ftors ftors for the financial yor the financial yor the financial yor the financial yor the financial year endedear endedear endedear endedear endedDecember 31, 2009December 31, 2009December 31, 2009December 31, 2009December 31, 2009

Rs. Lakhs

N a m eN a m eN a m eN a m eN a m e SalarSalarSalarSalarSalaryyyyy PPPPPe re re re re rquisitesquisitesquisitesquisitesquisites PPPPPe re re re re rffffformanceormanceormanceormanceormance CCCCCo no no no no ntributiontributiontributiontributiontribution CCCCCommissionommissionommissionommissionommission Sitting FSitting FSitting FSitting FSitting Feeseeseeseesees TTTTTotalotalotalotalotalIncenIncenIncenIncenIncentivt ivt ivt ivt iveeeee to PF to PF to PF to PF to PF/////OSFOSFOSFOSFOSF

Mr. N.S. Sekhsaria - - - - 9.00 1.20 10.20

Mr. Paul Hugentobler - - - - 16.00 4.80 20.80

Mr. Sumit Banerjee 74.40 93.00 52.73 20.09 - - 240.22

Mr. S.M. Palia - - - - 16.00 2.00 18.00

Mr. Naresh Chandra - - - - 16.00 3.40 19.40

Mr. Markus Akermann - - - - 9.00 0.80 9.80

Mr. M.L. Narula - - - - 9.00 2.20 11.20

Mr. D.K. Mehrotra - - - - 9.00 0.40 9.40

Mr. R.A. Shah - - - - 16.00 2.00 18.00

Mr. S. Haribhakti - - - - 16.00 3.40 19.40

*Ms. S. Sharma(upto the date ofresignationi.e. 26.05.2009) - - - - 3.57 0.40 3.97

*Mr. Onne van derWeijde (upto thedate of resignationi.e. 28.10.2009) - - - - 12.28 1.40 13.68

*Dr. Nirmalya Kumar(upto the date ofresignationi.e. 09.01.2009) - - - - 0.20 - 0.20

*Mr. Kuldip Kaura(from 28.10.2009) - - - - 1.60 0.40 2.00

Notes:

i. The remuneration paid to Mr. Sumit Banerjee, Managing Director excludes contribution to gratuity fund,provision for leave encashment on retirement and other defined benefits payable to him, since the same isprovided on actuarial basis for the Company as a whole.

ii. The amounts indicated against the name of Mr. D. K. Mehrotra have been paid to Life Insurance Corporationof India.

iii. *Ms. Shikha Sharma, Mr. Onne van der Weijde, Dr. Nirmalya Kumar and Mr. Kuldip Kaura, Non-ExecutiveDirectors have been paid on prorata basis.

SUSUSUSUSUBSIBSIBSIBSIBSIDIARDIARDIARDIARDIARY CY CY CY CY COOOOOMPMPMPMPMPANANANANANIIIIIESESESESES

The Company does not have a material non-listed Indian subsidiary whose turnover ornet worth (i.e. paid up capital and free reserves) exceeds 20% of the consolidated turnoveror net worth respectively, of the listed holding company and its subsidiaries in theimmediately preceding accounting year.

50

The Management Audit Report of the Subsidiary Companies are placed before and reviewedby the Audit Committee.

Copies of the Minutes of the Audit Committee/ Board Meetings of Subsidiary Companiesare individually given to all the Directors and tabled at the subsequent Board Meetings.

DISCDISCDISCDISCDISCLLLLLOSUOSUOSUOSUOSURRRRRESESESESES

The particulars of transactions between the Company and its related parties as per theAccounting Standard 18 “Related Party Disclosures”, notified pursuant to Companies(Accounting Standards), Rules, 2006 (as amended), are set out at page number 92 to 95 ofthe Annual Report. However, these transactions are not likely to have any conflict withthe Company’s interest.

No strictures/penalties have been imposed on the Company by the Stock Exchanges orthe Securities and Exchange Board of India (SEBI) or any statutory authority on any mattersrelated to capital markets during the last three years.

In the preparation of the financial statements, the Company has followed the AccountingStandards notified, pursuant to Companies (Accounting Standards), Rules, 2006 (asamended). The significant accounting policies which are consistently applied, have beenset out in the Notes to the Accounts. The Company is gearing up to become compliantwith International Financial Reporting Standards (IFRS) and will be ready when IFRSbecomes mandatory in April, 2011.

The Company had successfully implemented SAP-ERP system which has brought greaterfinancial discipline and accountability. The Company has also implemented SAP-HR andall employee related reports would henceforth be system driven which will improve themonitoring and reporting process.

Adoption of non mandatory requirements under Clause 49 of the Listing Agreement arebeing reviewed from time to time.

CCCCCODE OF CODE OF CODE OF CODE OF CODE OF CONONONONONDUCTDUCTDUCTDUCTDUCT

The Board of Directors had at its Meeting held on December 5, 2005, approved the Codeof Business Conduct and Ethics, which was made applicable to the Board of Directors andall employees in the management grades.

The Board of Directors has recently reviewed and accordingly revised the Code of BusinessConduct and Ethics. The Code has been posted on the Company’s websitewww.acclimited.com. The revised Code of Conduct is applicable to the Directors and allemployees in management grades and the employees in senior management cadre arerequired to give an annual declaration that they have complied with the Code.

TTTTTRRRRRADIADIADIADIADING ING ING ING ING IN N N N N TTTTTHHHHHE CE CE CE CE COOOOOMPMPMPMPMPANANANANANY’S SHARY’S SHARY’S SHARY’S SHARY’S SHARES BES BES BES BES BY DIY DIY DIY DIY DIRRRRRECTECTECTECTECTORORORORORS ANS ANS ANS ANS AND DESIGNAD DESIGNAD DESIGNAD DESIGNAD DESIGNATTTTTED EMPLED EMPLED EMPLED EMPLED EMPLOOOOOYYYYYEESEESEESEESEES

As per the SEBI (Prohibition of Insider Trading) Regulations 1992, the Company Secretaryis the Compliance Officer and is responsible for setting forth policies, procedures,monitoring adherence to the rules for the preservation of price sensitive information, pre-clearance of trade, monitoring of trades and implementation of the Code of Conduct fortrading in Company’s securities under the overall supervision of the Board. The Companyhas adopted a Code of Conduct for Prevention of Insider Trading as well as a Code of

51

Corporate Disclosure Practices. All the Directors on the Board, employees at seniormanagement level at all locations and other employees who could be privy to unpublishedprice sensitive information of the Company are governed by this Code.

Means of CMeans of CMeans of CMeans of CMeans of Communicaommunicaommunicaommunicaommunicationtiontiontiontion

• The unaudited quarterly/ half yearly financial statements are announced within onemonth of the end of the quarter. The aforesaid financial statements are taken onrecord by the Board of Directors and are communicated to the Stock Exchanges wherethe Company’s securities are listed. Once the Stock Exchanges have been intimated,these results are given by way of a Press Release to various news agencies/analystsand published within forty-eight hours in two leading daily newspapers - one in Englishand one in Marathi.

• The audited annual results are announced within three months from the end of thelast quarter as stipulated under the Listing Agreement with the Stock Exchanges. Forthe financial year ended December 31, 2009, the audited annual results wereannounced on February 4, 2010. The aforesaid audited annual results are taken onrecord by the Board of Directors and are communicated to the Stock Exchanges wherethe Company’s securities are listed. Once the Stock Exchanges have been intimated,these results are given by way of a Press Release to various news agencies/analystsand are also published within forty-eight hours in two leading daily newspapers - onein English and one in Marathi. The audited financial statements form a part of theAnnual Report which is sent to the shareholders prior to the Annual General Meeting.

• The Company also informs by way of intimation to the Stock Exchanges all pricesensitive matters or such other matters which in its opinion are material and ofrelevance to the shareholders and subsequently issues a Press Release on the saidmatters.

• Individual reminders are sent each year to those investors whose dividends haveremained unclaimed, before transferring the monies to the Investors’ Education &Protection Fund (IEPF).

• The quarterly/half yearly and the annual results as well as the press releases of theCompany are also placed on the Company’s website: www.acclimited.com.

• All data required to be filed electronically pursuant to Clause 52 of the ListingAgreement with the Stock Exchanges, such as annual report, quarterly financialstatements, shareholding pattern, quarterly report on Corporate Governance are beingregularly filed on “Corp Filing” and Dissemination System (CFDS). Shareholders/Investors can view these information by visiting the website of CFDS,www.corpfiling.co.in.

GenerGenerGenerGenerGeneral Infal Infal Infal Infal Informaormaormaormaormation ftion ftion ftion ftion for Sharor Sharor Sharor Sharor Shareholderseholderseholderseholderseholders

InInInInInvvvvvestor Serestor Serestor Serestor Serestor Servicesvicesvicesvicesvices

The Company has an in-house Share Department located at its Registered Office whichhandles all matters relating to the shares of the Company including transfer/ transmissionof shares, dematerialisation of shares, payment of dividends, sub-division / consolidationof share certificates and investor grievances.

52

AddrAddrAddrAddrAddress fess fess fess fess for Cor Cor Cor Cor Corrorrorrorrorrespondenceespondenceespondenceespondenceespondence

Shareholders desiring to communicate with the Company on any matter relating to theshares/debentures of the Company may either visit in person or write quoting their Folio/Demat Account Number at the following address:

AAAAACCCCCC LimitedC LimitedC LimitedC LimitedC LimitedSharSharSharSharShare Depare Depare Depare Depare Departmentmentmentmentmenttttt“““““CCCCCemenemenemenemenementtttt House” House” House” House” House”121, Maharshi K121, Maharshi K121, Maharshi K121, Maharshi K121, Maharshi Karararararvvvvve Re Re Re Re Road,oad,oad,oad,oad,Mumbai 400020Mumbai 400020Mumbai 400020Mumbai 400020Mumbai 400020

TTTTTelephone Nos:elephone Nos:elephone Nos:elephone Nos:elephone Nos: (022) 66654401; 66654473; 66654469

FFFFFax No:ax No:ax No:ax No:ax No: (022) 66317458

Communication may also be sent by e-mail at the following addresses:

For transfer/transmission/ subdivision/demat: [email protected]

For loss of shares/dividend/ general inquiries: [email protected]

For investor grievance remaining unattended: [email protected]

Shareholders who hold shares in dematerialised form should correspond with theDepository Participant with whom they have opened Demat Account/s, for their queriesrelating to shareholding, change of address, ECS facility for dividend, etc. However, forenquiries relating to non receipt of shares/dividend, annual reports, issue of duplicateshares, subdivision of shares, change of address, ECS facility, notices, the shareholdersshould communicate directly with the Company.

EEEEExxxxxclusivclusivclusivclusivclusive E-Mail Ie E-Mail Ie E-Mail Ie E-Mail Ie E-Mail ID fD fD fD fD for Ror Ror Ror Ror Redredredredredressal of Inessal of Inessal of Inessal of Inessal of Invvvvvestor Cestor Cestor Cestor Cestor Complainomplainomplainomplainomplaintststststs

The Company has designated an e-mail ID exclusively for the purpose of registeringcomplaints by investors. The e-mail ID is AAAAACCCCCC-InC-InC-InC-InC-InvvvvvestorSupporestorSupporestorSupporestorSupporestorSupport@[email protected]@[email protected]@acclimited.com.om.om.om.om.Shareholders/Investors can send their complaints/grievances to the above e-mail ID andthe same will be attended to by our in-house Share Department.

PlanPlanPlanPlanPlanttttt L L L L Locaocaocaocaocationtiontiontiontion

The location of the Company’s Plants are given on the inside cover page of the AnnualReport.

MarkMarkMarkMarkMarketetetetet Inf Inf Inf Inf Informaormaormaormaormationtiontiontiontion

Listing on Stock EListing on Stock EListing on Stock EListing on Stock EListing on Stock Exxxxxchangeschangeschangeschangeschanges

The Company’s shares are listed on the following Stock Exchanges and the Listing Feeshave been paid to the Exchanges:

Bombay Stock Exchange LimitedPhiroze Jeejeebhoy Towers,Dalal StreetMumbai 400001National Stock Exchange of India LimitedExchange Plaza,Bandra-Kurla Complex,Bandra (East),Mumbai 400051

53

Scrip Code 500410 on BSEACC on NSE

ISIN Number for NSDL and CDSL – for Dematerialised shares INE012A01025

The Privately placed Non-Convertible Debentures are listed on the Wholesale Debt MarketSegment of the National Stock Exchange of India Limited.

AAAAACCCCCC SharC SharC SharC SharC Share Price vis a vis BSE Sensee Price vis a vis BSE Sensee Price vis a vis BSE Sensee Price vis a vis BSE Sensee Price vis a vis BSE Sensex Januarx Januarx Januarx Januarx January – December 2009y – December 2009y – December 2009y – December 2009y – December 2009

MonMonMonMonMonththththth BSE SenseBSE SenseBSE SenseBSE SenseBSE Sensexxxxx AAAAACCCCCC SharC SharC SharC SharC Share Price (on BSE)e Price (on BSE)e Price (on BSE)e Price (on BSE)e Price (on BSE) NoNoNoNoNo..... of shar of shar of shar of shar of shareseseseses TTTTTurnournournournournovvvvvererererer Close Close Close Close Close trtrtrtrtradedadedadedadedaded (((((Rs.Rs.Rs.Rs.Rs. Cr Cr Cr Cr Crorororororeseseseses)))))

duringduringduringduringduring (on BSE)(on BSE)(on BSE)(on BSE)(on BSE)HighHighHighHighHigh LLLLLowowowowow CloseCloseCloseCloseClose the monthe monthe monthe monthe monththththth

Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. (on BSE)(on BSE)(on BSE)(on BSE)(on BSE)

Jan-09 9424.24 567.10 469.10 504.85 2,595,872 130.83

Feb-09 8891.61 584.70 486.00 539.80 3,650,496 198.78

Mar-09 9708.50 604.90 510.10 576.65 3,640,107 201.38

Apr-09 11403.25 689.90 561.00 653.00 2,899,562 181.31

May-09 14625.25 804.00 570.00 783.00 3,103,417 211.58

Jun-09 14493.84 907.00 709.00 768.90 3,107,911 253.06

Jul-09 15670.31 889.90 720.00 881.30 3,634,220 295.42

Aug-09 15666.64 928.00 750.00 808.70 3,846,941 319.00

Sep-09 17126.84 855.20 759.00 819.30 2,575,004 207.55

Oct-09 15896.28 841.80 726.25 747.65 1,751,198 136.94

Nov-09 16926.22 816.75 686.20 796.60 2,128,182 160.67

Dec-09 17464.81 883.50 790.55 871.50 2,186,225 183.67

8000

9000

10000

11000

12000

13000

14000

15000

16000

17000

18000

Dec-09Nov-09Oct-09Sep-09Aug-09Jul-09Jun-09May-09Apr-09Mar-09Feb-09Jan-09400

500

600

700

800

900

BSE

Sen

sex

ACC

Sh

are

Pri

ce o

nB

SE (C

losi

ng)

Date

ACC Share Price at BSE & BSE Sensex

BSE Sensex ACC Share Price (on BSE) Close

54

AAAAACCCCCC SharC SharC SharC SharC Share Price on NSE vis a vis S&P Ce Price on NSE vis a vis S&P Ce Price on NSE vis a vis S&P Ce Price on NSE vis a vis S&P Ce Price on NSE vis a vis S&P CNX NifNX NifNX NifNX NifNX Nifty Januarty Januarty Januarty Januarty January – December 2009y – December 2009y – December 2009y – December 2009y – December 2009

MonMonMonMonMonththththth S&P CS&P CS&P CS&P CS&P CNXNXNXNXNX AAAAACCCCCC SharC SharC SharC SharC Share Price (on NSE)e Price (on NSE)e Price (on NSE)e Price (on NSE)e Price (on NSE) NoNoNoNoNo..... of shar of shar of shar of shar of shareseseseses TTTTTurnournournournournovvvvverererererNifNifNifNifNifty Closety Closety Closety Closety Close trtrtrtrtradedadedadedadedaded (Rs. Cr(Rs. Cr(Rs. Cr(Rs. Cr(Rs. Crorororororeseseseses)))))

duringduringduringduringduring (on NSE)(on NSE)(on NSE)(on NSE)(on NSE)HighHighHighHighHigh LLLLLowowowowow CloseCloseCloseCloseClose the monthe monthe monthe monthe monththththth

Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. (on NSE)(on NSE)(on NSE)(on NSE)(on NSE)

Jan-09 2874.80 559.90 450.20 506.40 9,245,966 464.30

Feb-09 2763.65 589.00 486.60 540.05 11,905,263 648.25

Mar-09 3020.95 605.00 511.05 574.40 14,931,598 823.09

Apr-09 3473.95 690.00 561.25 654.35 12,329,812 767.43

May-09 4448.95 804.85 568.60 782.50 15,357,150 1041.91

Jun-09 4291.10 903.60 708.00 765.75 14,707,841 1190.48

Jul-09 4636.45 888.00 715.10 880.80 14,509,074 1177.08

Aug-09 4662.10 928.80 752.00 807.00 14,676,072 1211.93

Sep-09 5083.95 855.00 756.65 820.25 10,870,040 875.11

Oct-09 4711.70 842.50 726.05 750.65 8,323,126 651.11

Nov-09 5032.70 817.00 680.50 797.65 9,979,858 752.21

Dec-09 5201.05 883.90 792.30 872.45 9,502,122 799.56

2500

3000

3500

4000

4500

5000

5500

6000

Dec-09Nov-09Oct-09Sep-09Aug-09Jul-09Jun-09May-09Apr-09Mar-09Feb-09Jan-09450

520

590

660

730

800

870

940

S&P

CN

X N

ifty

ACC

Sh

are

Pric

e on

NSE

Date

ACC Share Price at NSE & S & P CNX NIFTY

S&P CNX Nifty Close ACC Share Price (in NSE) Close

55

SHARSHARSHARSHARSHARE E E E E TTTTTRRRRRANSFER SANSFER SANSFER SANSFER SANSFER SYYYYYSSSSSTTTTTEM ANEM ANEM ANEM ANEM AND OD OD OD OD OTTTTTHHHHHER RER RER RER RER RELAELAELAELAELATTTTTED MED MED MED MED MAAAAATTTTTTTTTTERERERERERSSSSS

i.i.i.i.i. SharSharSharSharShare tre tre tre tre transfansfansfansfansfersersersersers

The share transfers in physical form are presently processed and the share certificatesare generally returned within a period of 15 days from the date of receipt.

ii.ii.ii.ii.ii. NominaNominaNominaNominaNomination ftion ftion ftion ftion facility facility facility facility facility for sharor sharor sharor sharor shareholdingeholdingeholdingeholdingeholding

As per the provisions of the Companies Act, 1956, facility for making nomination isavailable for shareholders in respect of shares held by them. Those shareholders whohold shares in physical form may obtain nomination forms from the Share Departmentof the Company.

iii.iii.iii.iii.iii. PPPPPaaaaaymenymenymenymenymenttttt of dividend thr of dividend thr of dividend thr of dividend thr of dividend through Elecough Elecough Elecough Elecough Electrtrtrtrtronic Clearing Seronic Clearing Seronic Clearing Seronic Clearing Seronic Clearing Servicevicevicevicevice

The Securities and Exchange Board of India (SEBI) has made it mandatory for allcompanies to use the bank account details furnished by the depositories for depositingdividends. As per the recent RBI guidelines, effective from September 30, 2009, ECScredit will be moved completely on National Electronic Clearance System (NECS)platform through core banking system. Accordingly, dividend will be credited to theshareholders’ bank account through NECS where complete core banking details areavailable with the Company. In the event any branch of a bank has not migrated tocore banking system, or where the core banking account number is not furnished bythe shareholder to the Depository/Company as the case may be, the Company willprint the details available in its records on the dividend warrants to be issued to theshareholders. The Company is complying with SEBI’s directive in this regard.

iviviviviv..... Unclaimed DividendsUnclaimed DividendsUnclaimed DividendsUnclaimed DividendsUnclaimed Dividends

The Company is required to transfer dividends which have remained unpaid /unclaimedfor a period of seven years to the Investor Education & Protection Fund established bythe Government. The Company will accordingly be required to transfer in August2010, the dividend for the year ended March 31, 2003 which have remained unclaimed/ unpaid.

As in the past, the Company will send intimation to shareholders whose dividendwarrants have not been encashed. Shareholders are requested to revert to the Companyif they have not received / encashed their dividend warrants.

vvvvv..... CCCCCorrorrorrorrorrespondence respondence respondence respondence respondence regaregaregaregaregarding change of addrding change of addrding change of addrding change of addrding change of address etcess etcess etcess etcess etc.....

Shareholders are requested to ensure that any correspondence for change of address,change in Bank Mandates etc., should be signed by the first named shareholder. TheCompany is now also requesting for supporting documents such as proof of residenceand proof of identification, whenever a letter requesting for change of address isreceived. This is being done in the interest of shareholders, as we have come acrosscases where attempts are made to fraudulently change the registered address ofshareholders by unscrupulous parties. Shareholders are requested to kindly co-operateand submit the necessary documents/evidence while sending the letters for changeof address. Shareholders who hold shares in dematerialised form should correspondwith the Depository Participant with whom they have opened Demat Account(s).

56

vi.vi.vi.vi.vi. Subdivision of sharSubdivision of sharSubdivision of sharSubdivision of sharSubdivision of shareseseseses

The Company had subdivided the face value of its shares from Rs. 100 each to Rs. 10each in 1999. The old shares having face value of Rs. 100 are no longer tradable in theStock Exchanges. Despite reminders, many shareholders are yet to exchange their oldshare certificates of face value Rs. 100 with the new share certificates having facevalue of Rs. 10. Shareholders holding share certificates of the face value of Rs. 100each are requested to send the certificates to the share department of the Companyfor exchange.

vii.vii.vii.vii.vii. PPPPPending Inending Inending Inending Inending Invvvvvestors’estors’estors’estors’estors’ Grie Grie Grie Grie Grievvvvvancesancesancesancesances

Any shareholder whose grievance has not been resolved satisfactorily, may kindlywrite to the Company Secretary at the Registered Office with a copy of the earliercorrespondence.

Distribution of sharDistribution of sharDistribution of sharDistribution of sharDistribution of shareholding as on December 31, 2009eholding as on December 31, 2009eholding as on December 31, 2009eholding as on December 31, 2009eholding as on December 31, 2009

NoNoNoNoNo. of Equity. of Equity. of Equity. of Equity. of Equity NoNoNoNoNo. of. of. of. of. of PPPPPererererercencencencencentage oftage oftage oftage oftage of NoNoNoNoNo. of Equity. of Equity. of Equity. of Equity. of Equity PPPPPererererercencencencencentage oftage oftage oftage oftage ofsharsharsharsharshareseseseses sharsharsharsharshareholderseholderseholderseholderseholders shar shar shar shar shareholderseholderseholderseholderseholders shar shar shar shar shares heldes heldes heldes heldes held sharsharsharsharshareholdingeholdingeholdingeholdingeholding

1 to 50 80604 59.97 1532252 0.82

51 to 100 17312 12.88 1430000 0.76

101 to 200 13303 9.90 1994833 1.06

201 to 500 11799 8.78 3895239 2.07

501 to 1000 5580 4.15 4054129 2.16

1001 to 5000 4894 3.64 9945728 5.30

5001 to 10000 502 0.37 3439141 1.83

10001 & above 421 0.31 161448970 86.00

TOTAL 134415 100.00 187740292 100.00

SharSharSharSharShareholding Peholding Peholding Peholding Peholding Paaaaattern as on December 31, 2009ttern as on December 31, 2009ttern as on December 31, 2009ttern as on December 31, 2009ttern as on December 31, 2009

CCCCCaaaaategortegortegortegortegory of Shary of Shary of Shary of Shary of Shareholdereholdereholdereholdereholder NumberNumberNumberNumberNumber TTTTTotalotalotalotalotal PPPPPererererercencencencencentagetagetagetagetageof sharof sharof sharof sharof share-e-e-e-e- number ofnumber ofnumber ofnumber ofnumber of of Sharof Sharof Sharof Sharof Shareeeeeholdersholdersholdersholdersholders sharsharsharsharshareseseseses CCCCCapitalapitalapitalapitalapital

(A)(A)(A)(A)(A) SharSharSharSharShareholding of Preholding of Preholding of Preholding of Preholding of Promoter andomoter andomoter andomoter andomoter andPrPrPrPrPromoter Gromoter Gromoter Gromoter Gromoter Groupoupoupoupoup

(1)(1)(1)(1)(1) IndianIndianIndianIndianIndian

(a) Individuals/Hindu Undivided Family 0 0 0

(b) Central Government/State Government(s) 0 0 0

(c) Bodies Corporate 1 86191067 45.91

(d) Financial Institutions/Banks 0 0 0

(e) Any Other (specify) 0 0 0

Sub - Sub - Sub - Sub - Sub - TTTTTotal (A)(1)otal (A)(1)otal (A)(1)otal (A)(1)otal (A)(1) 11111 8619106786191067861910678619106786191067 45.9145.9145.9145.9145.91

57

(2)(2)(2)(2)(2) FFFFForororororeigneigneigneigneign

(a) Individuals (Non-Resident Individuals/Foreign Individuals) 0 0 0

(b) Bodies Corporate 1 541000 0.29

(c) Institutions 0 0 0

(d) Any Other (specify) 0 0 0

Sub - Sub - Sub - Sub - Sub - TTTTTotal (A)(2)otal (A)(2)otal (A)(2)otal (A)(2)otal (A)(2) 11111 541000541000541000541000541000 0.290.290.290.290.29

TTTTTotal Sharotal Sharotal Sharotal Sharotal Shareholding of Preholding of Preholding of Preholding of Preholding of Promoter andomoter andomoter andomoter andomoter andPrPrPrPrPromoter Gromoter Gromoter Gromoter Gromoter Group (A)= (A)(1)+(A)(2)oup (A)= (A)(1)+(A)(2)oup (A)= (A)(1)+(A)(2)oup (A)= (A)(1)+(A)(2)oup (A)= (A)(1)+(A)(2) 22222 8673206786732067867320678673206786732067 46.2046.2046.2046.2046.20

(B)(B)(B)(B)(B) PPPPPublic sharublic sharublic sharublic sharublic shareholdingeholdingeholdingeholdingeholding

(1)(1)(1)(1)(1) InstitutionsInstitutionsInstitutionsInstitutionsInstitutions

(a) Mutual Funds/UTI 105 3262978 1.74

(b) Financial Institutions/Banks 133 36031029 19.19

(c) Central Government/State Government(s) 5 397295 0.21

(d) Venture Capital Funds 0 0 0

(e) Insurance Companies 0 0 0

(f) Foreign Institutional Investors 246 20799345 11.08

(g) Foreign Venture Capital Investors 0 0 0

(h) Any Other (specify) 0 0 0

Sub - Sub - Sub - Sub - Sub - TTTTTotal (B)(1)otal (B)(1)otal (B)(1)otal (B)(1)otal (B)(1) 489489489489489 6049064760490647604906476049064760490647 32.2232.2232.2232.2232.22

(2)(2)(2)(2)(2) Non-InstitutionsNon-InstitutionsNon-InstitutionsNon-InstitutionsNon-Institutions

(a) Bodies Corporate 1775 9419659 5.02

(b) Individuals -

i. Individual shareholders holding nominalshare capital upto Rs.1 lakh. 128849 25460096 13.56

ii. Individual shareholders holding nominalshare capital in excess of Rs.1 lakh 142 3614388 1.93


58

(c) Any Other (specify)

i. Directors:

Mr. Sumit Banerjee, 1 500 0.00Managing Director

Mr. M. L. Narula 1 12000 0.01(Non Executive Director) (Pursuant to

Optionsexcercised

under ESOSSchemes

during histenure as

ManagingDirector)

Mr. Shailesh Haribhakti 1 100 0.00(Non Executive Director)

ii. Shares held by Pakistani Citizens vestedwith the Custodian of Enemy Property 172 385965 0.21

iii. Other Foreign Nationals 4 1130 0.00

iv. Foreign Bodies 0 0 0

v. NRI/OCBs 2587 839626 0.45

vi. Clearing Members/Clearing House 356 131929 0.07

vii. Trusts 39 664785 0.35

Sub - Sub - Sub - Sub - Sub - TTTTTotal (B)(2)otal (B)(2)otal (B)(2)otal (B)(2)otal (B)(2) 133924133924133924133924133924 4051757840517578405175784051757840517578 21.5821.5821.5821.5821.58

TTTTTotal Potal Potal Potal Potal Public Sharublic Sharublic Sharublic Sharublic Shareholding (B)= (B)(1)+(B)(2)eholding (B)= (B)(1)+(B)(2)eholding (B)= (B)(1)+(B)(2)eholding (B)= (B)(1)+(B)(2)eholding (B)= (B)(1)+(B)(2) 134413134413134413134413134413 101008225101008225101008225101008225101008225 53.8053.8053.8053.8053.80

TTTTTOOOOOTTTTTAL (A)+(B)AL (A)+(B)AL (A)+(B)AL (A)+(B)AL (A)+(B) 134415134415134415134415134415 187740292187740292187740292187740292187740292 100.00100.00100.00100.00100.00

(((((C)C)C)C)C) SharSharSharSharShares held by Custodians and againstes held by Custodians and againstes held by Custodians and againstes held by Custodians and againstes held by Custodians and againstwhich Depositorwhich Depositorwhich Depositorwhich Depositorwhich Depository Ry Ry Ry Ry Receipts haeceipts haeceipts haeceipts haeceipts havvvvve beene beene beene beene beenissuedissuedissuedissuedissued 00000 00000 00000

GRGRGRGRGRANANANANAND D D D D TTTTTOOOOOTTTTTAL (A)+(B)+(AL (A)+(B)+(AL (A)+(B)+(AL (A)+(B)+(AL (A)+(B)+(C)C)C)C)C) 134415134415134415134415134415 187740292187740292187740292187740292187740292 100.00100.00100.00100.00100.00

FFFFForororororeign Preign Preign Preign Preign Promoters Gromoters Gromoters Gromoters Gromoters Group Disclosuroup Disclosuroup Disclosuroup Disclosuroup Disclosureeeee

Foreign Promoters shareholding in the Company is held by Holderind Investments Ltd.,Mauritius and indirectly through its Indian subsidiary Ambuja Cements India Pvt. Ltd.

Holderind Investments Ltd., Mauritius (Holcim Mauritius) has informed the Company that,Holcim Limited, Holderfin B.V., Holcim (India) Private Ltd. and Ambuja Cements India Pvt.Ltd. are companies belonging to the same group (hereinafter referred as “Holcim Group”)as defined under the Monopolies and Restrictive Trade Practices Act, 1969.


59

StaStaStaStaStatementementementementementtttt showing Shar showing Shar showing Shar showing Shar showing Shareholding of moreholding of moreholding of moreholding of moreholding of more than 1% of the Ce than 1% of the Ce than 1% of the Ce than 1% of the Ce than 1% of the Capital as on December 31, 2009apital as on December 31, 2009apital as on December 31, 2009apital as on December 31, 2009apital as on December 31, 2009

SrSrSrSrSr..... Names of the sharNames of the sharNames of the sharNames of the sharNames of the shareholderseholderseholderseholderseholders Number ofNumber ofNumber ofNumber ofNumber of PPPPPererererercencencencencentagetagetagetagetageNoNoNoNoNo..... sharsharsharsharshareseseseses of Cof Cof Cof Cof Capitalapitalapitalapitalapital

1 Ambuja Cement India Private Limited(Promoter) 86191067 86732067 46.20

Holderind Investments Ltd (Promoter) 541000

2 Life Insurance Corporation of India 31681260 16.88

3 ICICI Prudential Life Insurance Company Ltd. 4984776 2.66

4 J.P. Morgan Asset Management (Europe)S.A.R.L. A/c JP Morgan Funds EmergingMarkets Equity Fund 3067219 1.63

TTTTTOOOOOTTTTTALALALALAL 126465322126465322126465322126465322126465322 67.3667.3667.3667.3667.36

DemaDemaDemaDemaDematerialisaterialisaterialisaterialisaterialisation of shartion of shartion of shartion of shartion of shares and Liquidityes and Liquidityes and Liquidityes and Liquidityes and Liquidity

Equity Shares of the Company dematerialized as on December 31, 2009 94.13%

The Company has entered into agreements with both National Securities DepositoryLimited (NSDL) and Central Depository Services (India) Limited (CDSL) whereby shareholdershave an option to dematerialize their shares with either of the depositories.

Global DepositorGlobal DepositorGlobal DepositorGlobal DepositorGlobal Depository Ry Ry Ry Ry Receipts (eceipts (eceipts (eceipts (eceipts (GDRsGDRsGDRsGDRsGDRs) or an) or an) or an) or an) or any Cy Cy Cy Cy Conononononvvvvvererererertible instrumentible instrumentible instrumentible instrumentible instrumentststststs, C, C, C, C, Conononononvvvvversion Daersion Daersion Daersion Daersion Datestestestestesand likand likand likand likand likely impacely impacely impacely impacely impacttttt on Equity on Equity on Equity on Equity on Equity

(i) 64,62,000 Global Depository Receipts (GDRs) were issued in March / April 2004 at ashare price of U.S. $6.19 (equivalent to Rs. 280.05) per GDR at about 1% premium onclosing share price of Rs. 277.35 on March 8, 2004 on the Bombay Stock ExchangeLimited (BSE) representing 64,62,000 Equity Shares. The Company has terminated theDepository Agreement with effect from October 15, 2008 and the GDRs have beendelisted from the London Stock Exchange. The GDR holders were given time tosurrender their GDR’s in exchange for Equity Shares up to April 15, 2009. Citibankwho were the depository for the GDRs have recently sold the underlying shares andthe GDRs stand extinguished.

(ii) As on December 31, 2009, the following Employees’ Stock Options have been grantedwhich remain unexercised :-

ESOS SchemeESOS SchemeESOS SchemeESOS SchemeESOS Scheme NoNoNoNoNo. of Une. of Une. of Une. of Une. of Unexxxxxererererercisedcisedcisedcisedcised LastLastLastLastLast da da da da date fte fte fte fte fororororor EEEEExxxxxererererercise Pricecise Pricecise Pricecise Pricecise PriceOptionsOptionsOptionsOptionsOptions eeeeexxxxxererererercisecisecisecisecise Rs.Rs.Rs.Rs.Rs.

ESOS 2001 4,054 31.10.2010 127/-

ESOS 2004 NIL 15.12.2009 314/-(4,664 options excercised

before 15.12.2009 and sharesallotted in Jan. 2010)

TTTTTotalotalotalotalotal 4,0544,0544,0544,0544,054

Accordingly, if all the Employee Stock Options get exercised the Share Capital will go upby 4,054 shares (Rs.0.41 lakhs) and the reserves will go up by Rs. 4.74 lakhs.

60

LLLLLocaocaocaocaocation and time of Genertion and time of Genertion and time of Genertion and time of Genertion and time of General Meetings held in lastal Meetings held in lastal Meetings held in lastal Meetings held in lastal Meetings held in last thr thr thr thr three yee yee yee yee years:ears:ears:ears:ears:

CCCCCompanompanompanompanompany’y’y’y’y’sssss AAAAAGM/GM/GM/GM/GM/ LLLLLocaocaocaocaocationtiontiontiontion DaDaDaDaDatetetetete TTTTTimeimeimeimeimeFFFFFinancialinancialinancialinancialinancial EGMEGMEGMEGMEGMYYYYYearearearearear

2008 AGM Birla Matushri Sabhagar, April 8, 2009 3.00 p.m.19, Sir Vithaldas Thackersey Marg,Mumbai 400 020

2007 AGM Birla Matushri Sabhagar, April 24, 2008 3.00 p.m.19, Sir Vithaldas Thackersey Marg,Mumbai 400 020

2006 AGM Birla Matushri Sabhagar, March 28, 2007 10.00 a.m.19, Sir Vithaldas Thackersey Marg,Mumbai 400 020

2006 EGM Yashwantrao Chavan Pratisthan, June 8, 2006 11.30 a.m.Gen. Jagannath Bhosale Marg,Mumbai 400 021

Details of Special RDetails of Special RDetails of Special RDetails of Special RDetails of Special Resolution(sesolution(sesolution(sesolution(sesolution(s) passed a) passed a) passed a) passed a) passed attttt Gener Gener Gener Gener General Meetings during the lastal Meetings during the lastal Meetings during the lastal Meetings during the lastal Meetings during the last thr thr thr thr threeeeeeeeeeyyyyyears Annual Generears Annual Generears Annual Generears Annual Generears Annual General Meetings (Aal Meetings (Aal Meetings (Aal Meetings (Aal Meetings (AGM)GM)GM)GM)GM)

At the 73rd Annual General Meeting held on April 8, 2009, one Special Resolution waspassed pertaining to the alteration of Article 157 (ii) of the Articles of Association of theCompany which deals with the manner in which the Seal of the Company is to be used.The Resolution was put to vote and was passed with the requisite majority.

At the 72nd Annual General Meeting held on April 24, 2008, no Special Resolutions werepassed.

At the 71st Annual General Meeting held on March 28, 2007, no Special Resolutions werepassed.

EEEEExtrxtrxtrxtrxtraoraoraoraoraordinardinardinardinardinary Genery Genery Genery Genery General Meetings (EGM)al Meetings (EGM)al Meetings (EGM)al Meetings (EGM)al Meetings (EGM)

Pursuant to the Order dated May 5, 2006 passed by the High Court of Judicature atBombay in Company Application No. 596 of 2006, a Meeting of the Shareholders wasconvened on June 8, 2006 for approving the Schemes of Amalgamation of Tarmac (India)Limited, a wholly owned subsidiary of the Company with ACC. As required by law, a pollwas conducted at the Meeting and the Resolution pertaining to the approval of the Schemeof Amalgamation was passed with the requisite majority.

Details of RDetails of RDetails of RDetails of RDetails of Resolution passed thresolution passed thresolution passed thresolution passed thresolution passed through postal ballot, the persons who cough postal ballot, the persons who cough postal ballot, the persons who cough postal ballot, the persons who cough postal ballot, the persons who conduconduconduconduconducted theted theted theted theted thepostal ballotpostal ballotpostal ballotpostal ballotpostal ballot e e e e exxxxxererererercise and details of the vcise and details of the vcise and details of the vcise and details of the vcise and details of the voting paoting paoting paoting paoting patterntterntterntternttern

During the year under review no resolution has been passed through the exercise ofpostal ballot.

61

FIFIFIFIFINANCNANCNANCNANCNANCIAL CIAL CIAL CIAL CIAL CALENALENALENALENALENDDDDDAR:AR:AR:AR:AR:

Board Meeting for consideration of Accounts February 4, 2010for the financial year ended December 31,2009 and recommendation of dividend

Posting of Annual Reports On or before March 11, 2010

Book Closure Dates March 26, 2010 to April 8, 2010(both days inclusive)

Last date for receipt of Proxy Forms April 6, 2010 before 3.00 p.m.

Date, Time & Venue of the 74th Annual April 8, 2010 at 3.00 p.m.General Meeting Birla Matushri Sabhagar

19, Sir Vithaldas Thackersey Marg,Mumbai 400 020

Dividend Payment date April 13, 2010

Probable date of despatch of warrants April 10, 2010

Board Meeting for consideration of Within one month from the end of theunaudited quarterly results for the financial quarter as stipulated under the Listingyear ending December 31, 2010 Agreement with the Stock Exchanges.

Audited results for the current financial year Within three months from the end ofending December 31, 2010 the last quarter as stipulated under the

Listing Agreement with the StockExchanges.




62

D E C L A R A D E C L A R A D E C L A R A D E C L A R A D E C L A R A T I O N ST I O N ST I O N ST I O N ST I O N S

CCCCCompliance with Compliance with Compliance with Compliance with Compliance with Code of Business Code of Business Code of Business Code of Business Code of Business Conduconduconduconduconducttttt and E and E and E and E and Ethicsthicsthicsthicsthics

As provided under Clause 49 of the Listing Agreement with the Stock Exchanges, theBoard Members and the Senior Management Personnel have confirmed compliance withthe Code of Conduct and Ethics for the year ended December 31, 2009.

For ACC Limited

Sumit BanerjeeManaging Director


CCCCCEO / CEO / CEO / CEO / CEO / CFO CFO CFO CFO CFO Cererererertificatificatificatificatificationtiontiontiontion

As required by sub clause V of Clause 49 of the Listing Agreement with the Stock Exchanges,we have certified to the Board that for the financial year ended December 31, 2009, theCompany has complied with the requirements of the said sub clause.

For ACC Limited For ACC Limited

Sumit Banerjee Sunil NayakManaging Director Chief Financial Officer


63

SSSSS.R. Ba.R. Ba.R. Ba.R. Ba.R. Batliboi & Associatliboi & Associatliboi & Associatliboi & Associatliboi & AssociatestestestestesCharCharCharCharChartertertertertered Acced Acced Acced Acced Accounounounounountantantantantantststststs

22222ndndndndnd Floor Floor Floor Floor Floor, Urmi E, Urmi E, Urmi E, Urmi E, Urmi Estastastastastate,te,te,te,te,Jalan Mills CJalan Mills CJalan Mills CJalan Mills CJalan Mills Compound,ompound,ompound,ompound,ompound,

95, Ganpa95, Ganpa95, Ganpa95, Ganpa95, Ganpatrtrtrtrtrao Kao Kao Kao Kao Kadam Maradam Maradam Maradam Maradam Marggggg,,,,,LLLLLowowowowower Per Per Per Per Parararararel,el,el,el,el,

Mumbai – 400 013Mumbai – 400 013Mumbai – 400 013Mumbai – 400 013Mumbai – 400 013

AAAAAUUUUUDITDITDITDITDITORORORORORS’S’S’S’S’ C C C C CERERERERERTTTTTIIIIIFICFICFICFICFICAAAAATTTTTE ON CE ON CE ON CE ON CE ON CORORORORORPPPPPORORORORORAAAAATTTTTE GOE GOE GOE GOE GOVERVERVERVERVERNANCNANCNANCNANCNANCEEEEE

TO THE MEMBERS OF ACC LIMITED

We have examined the compliance of conditions of Corporate Governance by ACC Limited,for the year ended December 31, 2009, as stipulated in Clause 49 of the Listing Agreementof the said Company with Stock Exchange(s).

The compliance of conditions of Corporate Governance is the responsibility of theManagement. Our examination was limited to procedures and implementation thereof,adopted by the Company for ensuring the compliance of the conditions of the CorporateGovernance. It is neither an audit nor an expression of opinion on the financial statementsof the Company.

In our opinion and to the best of our information and according to the explanations givento us, we certify that the Company has complied with the conditions of CorporateGovernance as stipulated in the above mentioned Listing Agreement.

We further state that such compliance is neither an assurance as to the future viability ofthe Company nor the efficiency or effectiveness with which the Management hasconducted the affairs of the Company.

For S. R. Batliboi & AssociatesChartered Accountants

per Sudhir SoniPartner

Membership No.: 41870Mumbai: February 4, 2010

64

1.1.1.1.1. Net Sales:Net Sales:Net Sales:Net Sales:Net Sales:Figures in Rs. Crore

20092009200920092009 20082008200820082008 ChangeChangeChangeChangeChange Change%Change%Change%Change%Change%

Sale of Products and Services (Gross) 8,724.24 8,234.02 490.22 5.95%

Less - Excise Duty 697.04 951.15 (254.11) -26.72%

Sale of Products and Services (Net) 8,027.20 7,282.87 744.33 10.22%

The net sales increased by 10.22% during current year over previous year mainly due to higher cement realization.Cement volumes increased by 2.43% during the current year which can be seen from the following table:

Figures in million tonnes


Cement 21.52 21.01 0.51 2.43%

Clinker 2.02 3.99 (1.97) -49.37%

2.2.2.2.2. Other IncOther IncOther IncOther IncOther Income:ome:ome:ome:ome:Figures in Rs. Crore


Other operating income 163.70 165.53 (1.83) -1.11%

Other income 77.41 123.18 (45.77) -37.16%

Other operating income comprises sale of stores, materials etc., sale of surplus generated power, provision no longerrequired written back etc. The other operating income has decreased marginally by 1.11% during current year as comparedto previous year.

During the current year, other income is decreased by 37.16% as compared to previous year, primarily on account ofdecrease in interest income by Rs. 38.02 Crore due to lower amount of interest on Fixed Deposits with bank, due to higherinterest on income tax refund in the previous year and also on account of lower dividends from long term investment byRs. 7.60 Crore.

3.3.3.3.3. PPPPPurururururchase of Cchase of Cchase of Cchase of Cchase of Cemenemenemenemenement:t:t:t:t:Figures in Rs. Crore


Purchase of Cement 93.16 87.36 5.80 6.64%

During the current year there is marginal increase in purchase of cement for trading purpose.

4.4.4.4.4. RRRRRaw Maaw Maaw Maaw Maaw Materials Cterials Cterials Cterials Cterials Consumed:onsumed:onsumed:onsumed:onsumed:Figures in Rs. Crore


Raw Materials Consumed 891.51 799.12 92.39 11.56%

The raw materials consumption of the Company increased by 11.56 % over the previous year mainly due to higher prices ofGypsum and Slag consumed.

FINANCIAL ANALYSIS / HIGHLIGHTS

FINANCIAL ANALYSIS OF ACC LIMITED (STANDALONE)

65

5.5.5.5.5. PPPPPacking Maacking Maacking Maacking Maacking Materials Cterials Cterials Cterials Cterials Consumed:onsumed:onsumed:onsumed:onsumed: Figures in Rs. Crore


Packing Materials Consumed 238.72 280.14 (41.42) -14.79%

There is significant reduction of 14.79 % in Packing Material consumed due to decrease in the price of bags consumed fordespatch of cement.

6.6.6.6.6. PPPPPowowowowower and Fer and Fer and Fer and Fer and Fuel:uel:uel:uel:uel: Figures in Rs. Crore


Power and Fuel 1,539.65 1,598.96 (59.31) -3.71%

There is increase in the price of indigenous coal and imported coal but cost of Power and Fuel consumption hasdecreased as compared to previous year on account of optimization of coal mix and lesser consumption of coal per unitof power.

7.7.7.7.7. RRRRRepairs:epairs:epairs:epairs:epairs: Figures in Rs. Crore


Repairs 405.31 361.85 43.46 12.01%

Expenditure on account of repairs has increased by 12.01% due to consumption of refractories, liners, grinding media,spare parts, maintenance materials and other third party maintenance services.

8.8.8.8.8. RRRRRoooooyyyyyaltyaltyaltyaltyalty:::::Figures in Rs. Crore


Royalty 98.39 86.69 11.70 13.50%

There is increase in royalty paid on limestone as royalty rate has increased from Rs. 45 to Rs. 63 per tonnew.e.f. 13th Aug 2009.

9.9.9.9.9. PPPPPaaaaaymenymenymenymenyments to and Prts to and Prts to and Prts to and Prts to and Prooooovisions fvisions fvisions fvisions fvisions for Emploor Emploor Emploor Emploor Employyyyyees:ees:ees:ees:ees: Figures in Rs. Crore


Payment and provision for employees 367.71 416.32 (48.61) -11.68%

There is increase in employee cost on account of annual increment, Hay grade implementation for aligning the remunerationwith current market and compensation paid under Voluntary Retirement Scheme. During the current year, the Companyhas recognized a credit of Rs. 26.61 Crore (Previous Year charge of Rs. 34.13 Crore) due to change in discounting rate invaluation of present value of employee benefit liabilities as per Accounting Standard 15 (Revised) - “Employee Benefits”notified pursuant to the Companies (Accounting Standards) Rules, 2006.

10.10.10.10.10. LLLLLoadingoadingoadingoadingoading, , , , , TTTTTrrrrransporansporansporansporansportatatatatation and other chartion and other chartion and other chartion and other chartion and other charges:ges:ges:ges:ges: Figures in Rs. Crore


Loading, Transportation and other charges 169.69 176.98 (7.29) -4.12%

Cost of Loading, Transportation and other charges has marginally decreased as compared to previous year.During the current year there is no major variance in C&F charges (decreased by Rs. 2 per tonne in the current year) ascompared to previous year.

66

11.11.11.11.11. DiscDiscDiscDiscDiscounounounounount, Rt, Rt, Rt, Rt, Rebaebaebaebaebates and Allowtes and Allowtes and Allowtes and Allowtes and Allowances:ances:ances:ances:ances:Figures in Rs. Crore


Discount, Rebates and Allowances 93.49 105.20 (11.71) -11.13%

The cost of Discount, Rebates and Allowances has decreased by 11.13 % on account of discontinuation of one of discountscheme.

12.12.12.12.12. RRRRRaaaaates and tes and tes and tes and tes and TTTTTaxaxaxaxaxes:es:es:es:es:Figures in Rs. Crore


Rates and taxes 101.45 98.75 2.70 2.73%

An increase in additional goods tax in the state of Himachal Pradesh, partly nullified by a reduction in entry tax in thestate of UP, has lead to an overall impact increase by 2.73% in the rates and taxes.

13.13.13.13.13. AdvAdvAdvAdvAdvererererertisementisementisementisementisement:t:t:t:t:Figures in Rs. Crore


Advertisement 53.16 47.56 5.60 11.77%

There is increase in advertisement expenditure by 11.77% as compared to previous year on account of new facilities.

14.14.14.14.14. OutwOutwOutwOutwOutwararararard Fd Fd Fd Fd Frrrrreigheigheigheigheighttttt Char Char Char Char Charges on Cges on Cges on Cges on Cges on Cemenemenemenemenementtttt etc: etc: etc: etc: etc:Figures in Rs. Crore


Outward Freight Charges on Cement etc 1,054.41 1,001.58 52.83 5.27%

There is increase in cost of Outward freight charges on cement due to increase in railway freight for cement w.e.f. December2008 and the variation between the rates is 7%.

15.15.15.15.15. Other EOther EOther EOther EOther Expenses:xpenses:xpenses:xpenses:xpenses:Figures in Rs. Crore


Excise Duties (Net) 84.54 117.08 (32.54) -27.79%

Rent 32.59 33.22 (0.63) -1.90%

Insurance 17.60 17.86 (0.26) -1.46%

Stores and Spare parts Consumed 10.03 13.86 (3.83) -27.63%

Commission on Sales 23.12 20.24 2.88 14.23%

Other Expenses 270.48 286.55 (16.07) -5.61%

Provision for Bad and Doubtful Debts 31.26 0.71 30.55 4302.82%

TTTTTOOOOOTTTTTALALALALAL 469.62 489.52 (19.90) -4.07%

67

There is decrease in excise duty charges due to reduction in excise rate on clinker consumed for captive consumption atexempted units.

During the current year, there is marginal decrease in rent cost as compared to previous year.

As compared to previous year there is a reduction in the consumption of stores and spares consumed by Rs. 3.83 Crore.

During the current year, the Company has introduced cost reduction initiatives as a result of which there is decrease inother expenses as compared to previous year.

During the current year, provision is made of Rs. 29 Crore in respect of sales tax incentive available under a state governmentpolicy in respect of one of its cement plants as compared to previous year.

16.16.16.16.16. DeprDeprDeprDeprDepreciaeciaeciaeciaeciation:tion:tion:tion:tion: Figures in Rs. Crore


Depreciation 342.09 294.18 47.91 16.29%

There is increase in depreciation on account of asset capitalization of Rs. 1,005.71 Crore as compared to Rs. 492.02 Crore inthe previous year.

During the current year, there is commissioning of major portion of Bargarh expansion / modernization project along withcaptive power plant and grinding plants at Kudithini and Thondebhavi with capacity of 1.1 MTPA and 1.6 MTPA respectively.

17.17.17.17.17. InInInInInterterterterterestestestestest Char Char Char Char Charges:ges:ges:ges:ges: Figures in Rs. Crore


Interest Charges 84.30 39.96 44.34 110.96%

Interest charges comprise interest on debenture, term loans, interest on income tax and other interest.

The Company has raised Rs. 500 Crore (Rs. 200 Crore in the previous year in the month of Dec 08) through privateplacement of secured non-convertible debenture. The interest charges on debentures have been capitalised of Rs. 26.38Crore as compared to Rs. 1.36 Crore in the previous year. Further during the current year, in the month of December 09 theCompany has repaid the rupee Term loan of Rs. 200 Crore. During the Current year, there is significant increase in otherinterest charges as compared to previous year mainly due to interest claim on delayed payment of royalty on limestonerelating to earlier years worth Rs. 22.43 Crore. The Company has filed a writ petition in the High Court of Shimla challengingthe said claim. Further during the current year the Company has provided interest on income tax of Rs. 17.58 Crore.

18.18.18.18.18. EEEEExxxxxceptional Items:ceptional Items:ceptional Items:ceptional Items:ceptional Items: Figures in Rs. Crore


Exceptional Items — 48.86 (48.86) -100.00%

There are no exceptional items as compared to previous year which includes profit on sale of investment in ACC MachineryCompany limited and sale of land at Sanatnagar.

19.19.19.19.19. FFFFFixixixixixed Assets:ed Assets:ed Assets:ed Assets:ed Assets: Figures in Rs. Crore


Net Fixed Assets 4,158.29 3,469.70 688.59 19.85%

Capital Work in progress 2,156.21 1,602.86 553.35 34.52%

Net Fixed Assets increased by 19.85% as compared to previous year mainly due to commissioning of major portion ofBargarh expansion / modernization project along with captive power plant with an incremental capacity of 1.1 MTPA andgrinding plants at Kudithini and Thondebhavi with capacity of 1.1 MTPA and 1.6 MTPA respectively.

68

Capital work in progress increased by 34.52% as compared to previous year mainly due to expenditure incurred as part ofthe on-going expansion / modernization projects at Wadi, Chanda and others.

20.20.20.20.20. InInInInInvvvvvestmenestmenestmenestmenestments:ts:ts:ts:ts:Figures in Rs. Crore


Investments 1,475.64 679.08 796.56 117.30%

There is increase in Investments mainly on account of subscription of 1% cumulative Redeemable Preference Shares ofRs. 100 Crores in ACC Concrete Limited, acquisition of 100% stake in National Limestone Company Pvt. Ltd (a Companyengaged in mining of limestone) and subscription of Rs. 4.90 Crore of Equity shares in ACC Mineral Resources Limited.

There has also been a substantial increase in the investment of mutual funds as compared to previous year. As on December31, 2009 the Company invested Rs. 1,129.47 Crore in mutual funds out of the cash surplus / internal accrual lying with theCompany.

21.21.21.21.21. StockStockStockStockStock-in-tr-in-tr-in-tr-in-tr-in-trade and Storade and Storade and Storade and Storade and Stores & Spares & Spares & Spares & Spares & Spares:es:es:es:es:Figures in Rs. Crore


Stock-in-trade and Stores & Spares 778.98 793.27 (14.29) -1.80%

The Stock-in-trade as on 31st December, 2009 was lower than the level of 31st December, 2008 by Rs. 14.29 Crore mainly onaccount of decrease in inventory of imported coal. Further the raw materials inventory was higher than last year due to asignificant increase in the prices of Gypsum.

22.22.22.22.22. SundrSundrSundrSundrSundry Debtors:y Debtors:y Debtors:y Debtors:y Debtors:Figures in Rs. Crore


Sundry Debtors 203.70 310.17 (106.47) -34.33%

There is decrease in Sundry Debtors by 34.33% as compared to previous year. During the year provision is made of Rs. 29.44crore in respect of sales tax incentive as well as Rs. 15 Crore on account of Capital Subsidy as receivable under a stategovernment policy in respect of one of its cement plants.

A days sale outstanding for cement customer third party as on 31st December, 2009 is 2.95 as compared to 4.45 as on 31st

December, 2008.

23.23.23.23.23. Other CurrOther CurrOther CurrOther CurrOther Currenenenenenttttt Assets: Assets: Assets: Assets: Assets:Figures in Rs. Crore


Other Current Assets 10.99 20.67 (9.68) -46.83%

Other current assets comprises accrued interest and asset held for disposal. Accrued interest includes interest on fixeddeposits and government securities. During the current year, the other current assets have gone down due to decrease inaccrued interest on fixed deposit as compared to previous year.....

24.24.24.24.24. LLLLLoans and Advoans and Advoans and Advoans and Advoans and Advances:ances:ances:ances:ances:Figures in Rs. Crore


Loans and Advances 554.42 651.28 (96.86) -14.87%

69

Loans and advances decreased mainly due to realization of inter corporate deposit of Rs. 100 crore given to ACC ConcreteLimited, a wholly owned subsidiary of the Company.

During the current year, there is an increase in balance with excise, customs ports and other authorities by Rs. 9 crore onaccount of availment of cenvat credit on capital items, on account of on-going CAPEX projects at Kudithini, Thondebhavi,Wadi, Chanda and Bargah plants and the same will be utilized in the next year since Company has registered itself underthe Large Tax Payer Unit (LTU) w.e.f. October 1, 2009.

25.25.25.25.25. CurrCurrCurrCurrCurrenenenenenttttt Liabilities: Liabilities: Liabilities: Liabilities: Liabilities:Figures in Rs. Crore


Current Liabilities 2,060.34 1,801.79 258.55 14.35%

Current liabilities have increased by 14.35% as compared to previous year primarily on account of higher provision formarketing and sales expenses, which in turn is arising out of higher sales during the year and increase in provision forexpenses in line with the increase in turnover etc.

26.26.26.26.26. PrPrPrPrProoooovisions:visions:visions:visions:visions:Figures in Rs. Crore


Provisions 1,091.88 963.93 127.95 13.27%

During the current year provisions have increased on account of provision of proposed dividend of Rs. 13 per share ascompared to Rs. 10 per share in the previous year. Liability has also increased on account of provision for income tax,further provision in respect of retirement benefits has decreased on account of change in discounting rate.

27.27.27.27.27. LLLLLoan Foan Foan Foan Foan Funds:unds:unds:unds:unds:Figures in Rs. Crore


Secured Loans 550.00 450.00 100.00 22.22%

Unsecured Loans 16.92 32.03 (15.11) -47.17%

There is increase in secured loans primarily on account of issuance of Rs. 300 Crore secured non-convertible debentures inthe month of October 2009. During the current year, rupee term loan of Rs. 200 Crore has been repaid in the month ofDecember 2009.

During the current year, unsecured Loans have been decreased on account of repayment of loan taken from KRDCL.

70

Rs. CrRs. CrRs. CrRs. CrRs. Crorororororeeeee

20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 2005*2005*2005*2005*2005* 2004-052004-052004-052004-052004-05 2003-042003-042003-042003-042003-04 2002-032002-032002-032002-032002-03 2001-022001-022001-022001-022001-02 2000-012000-012000-012000-012000-01

IIIIINCNCNCNCNCOOOOOME SME SME SME SME STTTTTAEMENTAEMENTAEMENTAEMENTAEMENT

Net Sales 8,027 7,283 6,991 5,803 3,221 3,902 3,284 2,860 2,831 2,576

Operating EBIDTA 2,643 1,899 1,993 1,717 616 715 496 353 482 390

Profit before Tax 2,294 1,737 1,930 1,620 684 444 254 118 164 51

Profit after Tax 1,607 1,213 1,439 1,232 544 378 200 104 130 57

BBBBBALANCALANCALANCALANCALANCE SHE SHE SHE SHE SHEETEETEETEETEET

Net Worth 6,016 4,928 4,153 3,142 2,130 1,585 1,319 1,024 946 1,082

Borrowings 567 482 306 771 1,071 1,408 1,353 1,405 1,508 1,657

Net Fixed Assets 6,315 5,073 3,964 3,481 3,122 2,872 2,472 2,456 2,317 2,298

Current Assets 2,294 2,760 2,203 1,921 1,421 1,214 1,040 891 896 908

Current Liabilities 3,152 2,766 2,221 1,672 1,335 1,076 941 807 700 649

Capital Employed 6,932 5,746 4,791 4,234 3,502 3,301 2,982 2,720 2,761 2,809

SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT RANT RANT RANT RANT RAAAAATTTTTIOSIOSIOSIOSIOS

Operating EBIDTA /Net sales 33% 26% 29% 30% 19% 18% 15% 12% 17% 15%

Return on CapitalEmployed 49% 40% 42% 41% 19% 18% 12% 9% 13% 11%

Return on Net Worth 27% 25% 35% 39% 34% 24% 15% 10% 14% 5%

Current Ratio 0.73 1.00 0.99 1.15 1.06 1.13 1.11 1.10 1.28 1.40

Debts Equity Ratio 0.09 0.10 0.07 0.25 0.50 0.89 1.02 1.37 1.59 1.53

Price Earning Ratio 10.23 7.39 13.74 16.44 17.74 17.25 21.62 23.60 20.15 40.22

Dividend Yield Ratio 3% 4% 2% 1% 2% 2% 2% 2% 2% 1%

Net Worth per Share (Rs.) 320 263 221 168 115 89 74 60 55 63

Net Sales per Share (Rs.) 428 388 373 310 175 219 185 167 166 151

Basic Earningsper Share (Rs.) 85.60 64.63 76.75 66.02 30.02 21.23 11.68 6.08 7.64 3.35

*Pertains to nine months period.

FINANCIAL HIGHLIGHTS

71

AUDITOR’S REPORT TO THE MEMBERSOF ACC LIMITED

1. We have audited the attached Balance Sheet of ACC Limited (‘the Company’) as atDecember 31, 2009 and also the Profit and Loss Account and the Cash Flow Statement for theyear ended on that date annexed thereto. These financial statements are the responsibility of theCompany’s management. Our responsibility is to express an opinion on these financial statementsbased on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India. ThoseStandards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. Anaudit also includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believe thatour audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) (‘the said Order’) issuedby the Central Government of India in terms of sub-section (4A) of Section 227 of the CompaniesAct, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and5 of the said Order.

4. Further to our comments in the Annexure referred to above, we report that:

a) we have obtained all the information and explanations, which to the best of our knowledgeand 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 Companyso far as appears from our examination of those books;

c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by thisreport are in agreement with the books of account;

d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealtwith by this report comply with the accounting standards referred to in sub-section (3C) ofSection 211 of the Companies Act, 1956;

e) on the basis of the written representations received from the directors, as onDecember 31, 2009, and taken on record by the Board of Directors, we report that none ofthe directors is disqualified as on December 31, 2009 from being appointed as a director interms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956;

f) in our opinion and to the best of our information and according to the explanations given tous, the said accounts give the information required by the Companies Act, 1956, in the mannerso required and give a true and fair view in conformity with the accounting principles generallyaccepted in India:

(i) in the case of the Balance Sheet, of the state of affairs of the Company as at December31, 2009;

(ii) in the case of the Profit and Loss Account, of the profit for the year ended on that date;and

(iii) in the case of Cash Flow Statement, of the cash flows for the year ended on that date.

For S.R. BATLIBOI & ASSOCIATESChartered Accountants

per Sudhir SoniPartnerMembership No. 41870

Place: MumbaiDate: February 4, 2010

72

ANNEXURE TO THE AUDITOR’S REPORT(R(R(R(R(Refefefefeferrerrerrerrerred to in pared to in pared to in pared to in pared to in paragragragragragraph 3 of our Raph 3 of our Raph 3 of our Raph 3 of our Raph 3 of our Reporeporeporeporeporttttt of e of e of e of e of evvvvven daen daen daen daen date)te)te)te)te)

RRRRRe: Ae: Ae: Ae: Ae: ACCCCCC Limited (‘C Limited (‘C Limited (‘C Limited (‘C Limited (‘the Cthe Cthe Cthe Cthe Companompanompanompanompany’y’y’y’y’)

(i) (a) The Company has maintained proper records showing full particulars, including quantitativedetails and situation of fixed assets.

(b) A substantial portion of fixed assets has been physically verified during the year by themanagement and in our opinion the frequency of verification is reasonable having regardto the size of the Company and the nature of its assets. No material discrepancies werenoticed on such verification.

(c) Fixed assets disposed off during the year were not substantial. According to the informationand explanations given by the management and on the basis of audit procedures performedby us, we are of the opinion that the disposal of fixed assets has not affected the goingconcern of the Company.

(ii) (a) The management has conducted physical verification of inventory at reasonable intervalsduring the year.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) In our opinion, the Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.

(iii) (a) As informed, the Company has not granted any loans, secured or unsecured to companies,firms or other parties covered in the register maintained under Section 301 of the CompaniesAct, 1956. Accordingly, sub-clause (b), (c) and (d) are not applicable.

(e) As informed, the Company has not taken any loans, secured or unsecured from companies,firms or other parties covered in the register maintained under Section 301 of the CompaniesAct, 1956. Accordingly, sub-clause (f) and (g) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is an adequateinternal control system commensurate with the size of the Company and the nature of itsbusiness, for the purchase of inventory and fixed assets and for the sale of goods and services.During the course of our audit, no major weakness has been noticed in the internal controlsystem in respect of these areas. During the course of our audit, we have not observed anycontinuing failure to correct major weakness in internal control system of the company.

(v) (a) According to the information and explanations provided by the management, there wereno transactions during the year pursuant to the contracts or arrangements referred to inSection 301 of the Companies Act, 1956. Accordingly, sub-clause (b) is not applicable.

(vi) The Company has not accepted any deposits from the public to which the provisions of Section58A, 58AA, or any other relevant provisions of the Companies Act, 1956 and the Companies(Acceptance of Deposit) Rules, 1975 apply.

(vii) In our opinion, the Company has an internal audit system commensurate with the size andnature of its business.

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to therules made by the Central Government for the maintenance of cost records underSection 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, theprescribed accounts and records have been made and maintained. We have not, however, madea detailed examination of the same.

(ix) (a) According to the records of the Company, provident fund, investor education and protectionfund, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess andother material statutory dues applicable to it have generally been regularly deposited duringthe year with appropriate authorities except at certain locations where we are informedthat the Company has applied for exemption from the operation of the Employees’ StateInsurance Act, 1948.

(b) According to the information and explanations given to us, no undisputed amounts payablein respect of provident fund, investor education and protection fund, employees’ stateinsurance, income tax, sales tax, wealth tax, service tax, customs duty, excise duty, cess andother material statutory dues were outstanding, at the year end, for a period of more thansix months from the date they became payable.

(c) According to the records of the Company, the dues outstanding of income tax, sales tax,wealth tax, service tax, customs duty, excise duty, cess and other material statutory dueson account of any dispute, are as follows:

73

(Rs. Crore)

Forum where dispute is pending

Name of Period to which Commiss- Appellate High Supreme TotalStatute the amount relates ionarate authorities Court Court(Nature of dues) & Tribunal

Sales Tax 1982-83 to 2009 52.19 99.47 253.50 - 405.16405.16405.16405.16405.16(Tax / Penalty /Interest)

Central Excise Act 1982-83 to 2009 7.51 27.15 2.76 5.88 43.3043.3043.3043.3043.30(Duty / Penalty /Interest)Service Tax under 2004-05 to 2009 4.91 1.14 - - 6.056.056.056.056.05Finance Act, 1994(Tax / Penalty /Interest)Cess on 2003-04 to 2009 - - - 15.62 15.6215.6215.6215.6215.62powergeneration

(x) The Company has no accumulated losses at the end of the financial year and it has not incurredcash losses in the current and immediately preceding financial year.

(xi) Based on our audit procedures and as per the information and explanations given by themanagement, we are of the opinion that the Company has not defaulted in repayment of duesto a financial institution, bank or debenture holders.

(xii) Based on our examination of documents and records, we are of the opinion that the Companyhas not granted loans and advances on the basis of security by way of pledge of shares,debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society.Therefore, the provisions of clause (xiii) of the said Order are not applicable to the Company.

(xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures andother investments. Accordingly, the provisions of clause (xiv) of the said Order are not applicableto the Company.

(xv) According to the information and explanations given to us, the Company has not given anyguarantee for loans taken by others from bank or financial institutions.

(xvi) Based on information and explanations given to us by the management, term loans were appliedfor the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination of theBalance Sheet of the Company, we report that no funds raised on short-term basis have beenused for long-term investment.

(xviii) The Company has not made any preferential allotment of shares to parties or companies coveredin the register maintained under Section 301 of the Companies Act, 1956.

(xix) During the period covered by our audit, the Company has issued 3,000 privately placednon- convertible debentures of Rs. 1,000,000 each. The Company has created charge in respectof these debentures.

(xx) The Company has not raised any money by the way of public issue during the year. Therefore theprovisions of clause (xx) of the said Order are not applicable to the Company.

(xxi) Based upon the audit procedures performed for the purpose of reporting the true and fair viewof the financial statements and as per the information and explanations given by themanagement, we report that no fraud on or by the Company has been noticed or reportedduring the course of our audit.

For S.R. BATLIBOI &ASSOCIATESChartered Accountants



74

BALANCE SHEET AS AT DECEMBER 31, 2009

2009 2008

Schedules Rs. Crore Rs. Crore Rs. Crore

SOUSOUSOUSOUSOURRRRRCCCCCES OF FES OF FES OF FES OF FES OF FUUUUUNNNNNDS:DS:DS:DS:DS:

SharSharSharSharShareholders’eholders’eholders’eholders’eholders’ F F F F Funds:unds:unds:unds:unds:Share Capital ..................................................................................................................... 1 187.94 187.88Share Application Money, pending allotment ................................................... 0.08 -Reserves and Surplus ..................................................................................................... 2 5,828.20 4,739.85

6,016.22 4,927.73LLLLLoan Foan Foan Foan Foan Funds:unds:unds:unds:unds:Secured Loans ................................................................................................................... 3 550.00 450.00Unsecured Loans ............................................................................................................. 4 16.92 32.03

566.92 482.03

DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net) ................................................................................. 349.25 335.79{Refer Note - 14(b)}

TTTTTOOOOOTTTTTAL FAL FAL FAL FAL FUUUUUNNNNNDSDSDSDSDS ................................................................................................................... 6,932.396,932.396,932.396,932.396,932.39 5,745.555,745.555,745.555,745.555,745.55

APPLICAPPLICAPPLICAPPLICAPPLICAAAAATTTTTION OF FION OF FION OF FION OF FION OF FUUUUUNNNNNDS:DS:DS:DS:DS:

FFFFFixixixixixed Assets:ed Assets:ed Assets:ed Assets:ed Assets: 5

Gross Block ......................................................................................................................... 6,826.27 5,835.67

Less: Accumulated Depreciation and Amortisation ........................................ 2,667.98 2,365.97

Net Block ............................................................................................................................. 4,158.29 3,469.70

Capital Work-in-Progress (including Capital Advances) ................................. 2,156.21 1,602.86

6,314.50 5,072.56

InInInInInvvvvvestmenestmenestmenestmenestmentststststs ...................................................................................................................... 6 1,475.64 679.08

CurrCurrCurrCurrCurrenenenenenttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans and Advoans and Advoans and Advoans and Advoans and Advances:ances:ances:ances:ances:Inventories .......................................................................................................................... 7 778.98 793.27Sundry Debtors ................................................................................................................ 8 203.70 310.17Cash and Bank Balances .............................................................................................. 9 746.38 984.24Other Current Assets ..................................................................................................... 10 10.99 20.67Loans and Advances ....................................................................................................... 11 554.42 651.28

2,294.47 2,759.63

LLLLLess : Curress : Curress : Curress : Curress : Currenenenenenttttt Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Prooooovisions:visions:visions:visions:visions:

Current Liabilities ............................................................................................................ 12 2,060.34 1,801.79

Provisions ............................................................................................................................ 13 1,091.88 963.93

3,152.22 2,765.72

NetNetNetNetNet Curr Curr Curr Curr Currenenenenenttttt Assets Assets Assets Assets Assets ....................................................................................................... (857.75) (6.09)

TTTTTOOOOOTTTTTAL AAL AAL AAL AAL ASSETSSETSSETSSETSSETS (Net)S (Net)S (Net)S (Net)S (Net) ...................................................................................................... 6,932.396,932.396,932.396,932.396,932.39 5,745.555,745.555,745.555,745.555,745.55

Notes to AccNotes to AccNotes to AccNotes to AccNotes to Accounounounounountststststs ........................................................................................................ 18

The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.As per our report of even date For and on behalf of the Board of ACC Limited,

For S.R. BATLIBOI & ASSOCIATES N. S. SEKHSARIA PAUL HUGENTOBLER S. M. PALIAChartered Accountants Chairman Deputy Chairman NARESH CHANDRA

M. L. NARULAper SUDHIR SONI SUMIT BANERJEE SUNIL K. NAYAK D. K. MEHROTRA DirectorsPartner Managing Director Chief Financial Officer R. A. SHAHMembership No. 41870 SHAILESH HARIBHAKTI

BURJOR D. NARIMAN KULDIP KAURACompany Secretary


}

75

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDEDDECEMBER 31, 2009

2009 2008Schedules Rs. Crore Rs. Crore Rs. Crore

IIIIINCNCNCNCNCOOOOOME:ME:ME:ME:ME:Sale of Products and Services (Gross) .................................................................... 8,724.24 8,234.02Less - Excise Duty ............................................................................................................ 697.04 951.15

Sale of Products and Services (Net) {Refer Note - 21 & 24(A)} .................. 8,027.20 7,282.87Other Income .................................................................................................................... 14 241.11 288.71

8,268.318,268.318,268.318,268.318,268.31 7,571.587,571.587,571.587,571.587,571.58EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE:E:E:E:E:Manufacturing and Other Expenses ...................................................................... 15 5,547.53 5,549.70Depreciation and Amortisation ................................................................................ 5 342.09 294.18Interest ................................................................................................................................. 16 84.30 39.96

5,973.92 5,883.84

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxaxaaaaation and Etion and Etion and Etion and Etion and Exxxxxceptional itemsceptional itemsceptional itemsceptional itemsceptional items .............................................. 2,294.392,294.392,294.392,294.392,294.39 1,687.741,687.741,687.741,687.741,687.74Exceptional Items ............................................................................................................ 17 - 48.86

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxax ............................................................................................................ 2,294.392,294.392,294.392,294.392,294.39 1,736.601,736.601,736.601,736.601,736.60

PrPrPrPrProoooovision fvision fvision fvision fvision for or or or or TTTTTaxaxaxaxaxCurrent Tax ......................................................................................................................... (673.30) (510.47)Deferred Tax {Refer Note - 14(b)} ............................................................................. (13.46) (4.34)Fringe Benefit Tax ........................................................................................................... (0.90) (9.00)

(687.66) (523.81)

PrPrPrPrProfitofitofitofitofit af af af af after ter ter ter ter TTTTTaxaxaxaxax ................................................................................................................ 1,606.731,606.731,606.731,606.731,606.73 1,212.791,212.791,212.791,212.791,212.79

Balance brought forward from Previous Year .................................................... 2,477.91 2,064.89

PrPrPrPrProfitofitofitofitofit a a a a avvvvvailable failable failable failable failable for appror appror appror appror appropriaopriaopriaopriaopriationtiontiontiontion ........................................................................ 4,084.644,084.644,084.644,084.644,084.64 3,277.683,277.683,277.683,277.683,277.68

ApprApprApprApprAppropriaopriaopriaopriaopriations:tions:tions:tions:tions:Interim Dividend .............................................................................................................. 187.70 187.65Proposed Dividend .......................................................................................................... 244.06 187.68Dividend Distribution Tax ............................................................................................ 73.38 63.79General Reserve ............................................................................................................... 350.00 350.00Debenture Redemption Reserve ............................................................................... 25.00 10.00Previous Year Dividend ................................................................................................. - 0.02Amortisation Reserve .................................................................................................... 0.65 0.63

880.79 799.77

Balance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance Sheet ........................................................................ 3,203.853,203.853,203.853,203.853,203.85 2,477.912,477.912,477.912,477.912,477.91

Earning per Share (Refer Note - 6)Basic Earnings per Share .............................................................................................. Rupees 85.60 64.63Diluted Earnings per Share ......................................................................................... Rupees 85.42 64.53Face value per Share ...................................................................................................... Rupees 10.00 10.00Notes to Accounts ........................................................................................................... 18

The schedules referred to above and notes to accounts form an integral part of the Profit and Loss Account.As per our report of even date For and on behalf of the Board of ACC Limited,





}

76

CASH FLOW STATEMENT FOR THE YEAR ENDEDDECEMBER 31, 2009

2009 2008

Rs. Crore Rs. CroreA. Cash flow from operating activities

1 Net Profit before Tax and Exceptional Items ................................................................................. 2,294.39 1,687.74Adjustments for:2 Depreciation ................................................................................................................................................. 342.09 294.183 (Profit) / Loss on sale / Discarding of Fixed Assets - (Net) ....................................................... 3.24 9.944 Interest and Dividend Income .............................................................................................................. (76.60) (122.06)5 Interest Expense ......................................................................................................................................... 84.30 39.966 Profit on Sale / Write off of Investment ........................................................................................... (0.81) 0.837 Provision for Mines Restoration ........................................................................................................... 3.72 1.418 Provision for Retirement Benefits ....................................................................................................... (55.22) 33.469 Provision for Doubtful Debts and Advances (Net of adjustment) ........................................ 31.19 (0.20)10 Consumption of Machinery spares .................................................................................................... 14.01 4.8711 Wealth Tax provision ................................................................................................................................ 1.27 0.79

Operating profit before working capital changes ................................................................................... 2,641.58 1,950.92Adjustments for:12 Trade and other receivables .................................................................................................................. 45.94 (138.38)13 Inventories .................................................................................................................................................... 14.29 (83.44)14 Assets held for disposal .......................................................................................................................... 0.56 1.2815 Trade and other payables ....................................................................................................................... 189.62 296.36

Cash generated from operations ................................................................................................................... 2,891.99 2,026.7416 Direct Taxes Paid - (Net) .......................................................................................................................... (494.05) (318.41)

NetNetNetNetNet C C C C Cash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities ............................................................................................... 2,397.942,397.942,397.942,397.942,397.94 1,708.331,708.331,708.331,708.331,708.33

B. Cash flow from investing activities17 Loans to Companies ................................................................................................................................. 44.20 (112.35)18 Purchase of Fixed Assets ......................................................................................................................... (1,523.23) (1,494.00)19 Sale of Ready Mixed Concrete business ........................................................................................... - 100.00

(Total consideration is in cash and cash equivalents)20 Sale of Fixed Assets .................................................................................................................................. 7.84 17.7921 Purchase of Investments {includes Rs. 121.14 Crore towards investment in

subsidiary Companies (Previous Year - Rs. 110.36 Crore)} ......................................................... (4,832.62) (3,832.67)22 Sale of Investments {includes Rs. Nil towards sale of investment in

subsidiary Company (Previous Year - Rs. 41.85 Crore)} .............................................................. 4,036.87 4,034.41(Total consideration is in cash and cash equivalents)

23 Interest and Dividend Received ........................................................................................................... 85.72 116.38

NetNetNetNetNet cash used in in cash used in in cash used in in cash used in in cash used in invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities ....................................................................................................... (2,181.22)(2,181.22)(2,181.22)(2,181.22)(2,181.22) (1,170.44)(1,170.44)(1,170.44)(1,170.44)(1,170.44)

C. Cash flow from financing activities24 Interest paid {includes amount capitalised Rs. 26.38 Crore -

(Previous Year - Rs. 1.36 Crore)} ............................................................................................................. (105.44) (40.29)25 Proceeds from issue of Share Capital ................................................................................................ 1.90 1.3926 Short term Borrowings - (Net) ............................................................................................................. - (16.03)27 Proceeds from Long term Borrowings ............................................................................................... 300.00 200.0028 Repayment of Long term Borrowings ............................................................................................... (215.11) (8.35)29 Dividend paid (including dividend distribution tax) ................................................................... (435.93) (433.85)

NetNetNetNetNet cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing activitiestivitiestivitiestivitiestivities ...................................................................................................... (454.58)(454.58)(454.58)(454.58)(454.58) (297.13)(297.13)(297.13)(297.13)(297.13)

Net increase / (decrease) in cash and cash equivalents ...................................................................... (237.86) 240.76

Cash and cash equivalents- Opening Balance ..................................................................................................................................... 984.24 743.48- Closing Balance ........................................................................................................................................ 746.38 984.24

Notes: 1 All figures in brackets are outflow. -- 2 Closing cash and cash equivalents includes amounts earmarked for specific purposes Rs. 25.23 Crore (Previous Year - Rs. 21.98 Crore).

3 Cash and cash equivalents are Cash and Bank Balances as per Balance Sheet.4 Direct Taxes paid are treated as arising from operating activities and are not bifurcated between investing and financing activities.5 Previous year’s figures have been regrouped / restated wherever necessary.

As per our report of even date For and on behalf of the Board of ACC Limited,





}

77

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL 2009 2008

Rs. Crore Rs. Crore Rs. Crore

AAAAAUUUUUTTTTTHORHORHORHORHORISED -ISED -ISED -ISED -ISED -

22,50,00,000 Equity Shares of Rs. 10 each .................................................................................... 225.00 225.00

10,00,00,000 Preference Shares of Rs. 10 each ........................................................................... 100.00 100.00

325.00 325.00

ISSUISSUISSUISSUISSUED -ED -ED -ED -ED -

18,87,88,179 (Previous Year - 18,87,29,706) Equity Shares of Rs. 10 each ...................... 188.78 188.72

SUSUSUSUSUBSCBSCBSCBSCBSCRRRRRIIIIIBBBBBED -ED -ED -ED -ED -

18,77,40,292 (Previous Year - 18,76,81,819) Equity Shares of Rs. 10 each fully paid 187.74 187.68

Add : 3,84,060 (Previous Year - 3,84,060) Equity Shares of Rs.10 eachForfeited - Amount paid ......................................................................................................................... 0.20 0.20

187.94 187.88

TOTAL ... 187.94 187.88

Notes:

Out of the above

60,72,640 (Previous Year - 60,72,640) Equity Shares of Rs. 10 each, fully paid issued for consideration other than cash pursuant to contracts.

9,19,52,080 (Previous Year - 9,19,52,080) Equity Shares of Rs. 10 each, fully paid issued by way of Bonus Shares by utilisation of SecuritiesPremium and Reserves.

Options in force as of December 31, 2009 under the Employees Stock Option Schemes - 4,054 Shares - (Previous Year - 81,654 Shares)ESOS 2001 - Vested Options exercisable @ Rs. 127/- per share till October 30, 2010 - 4,054 Shares - (Previous Year - 7,567 Shares)ESOS 2004 - Vested Options exercisable @ Rs. 314/- per share till December 15, 2009 - Nil - (Previous Year - 74,087 Shares)

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2, RLE - 2, RLE - 2, RLE - 2, RLE - 2, RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS 2009 2008


Capital Reserve ........................................................................................................................................... 82.64 82.64Less:Provision for Capital subsidy receivable {Refer Note - 15B(c)} ................................... 15.00 -

67.64 82.64

Securities Premium .................................................................................................................................. 842.93 841.50Add:Received during the year ............................................................................................................. 1.76 1.43

844.69 842.93

General Reserve ......................................................................................................................................... 1,319.86 969.86Add:Amount transferred from Profit and Loss Account ......................................................... 350.00 350.00

1,669.86 1,319.86

Debenture Redemption Reserve ......................................................................................................... 10.00 -Add:Amount transferred from Profit and Loss Account ......................................................... 25.00 10.00

35.00 10.00

Amortisation Reserve .............................................................................................................................. 6.49 5.86Add:Amount transferred from Profit and Loss Account ......................................................... 0.65 0.63

7.14 6.49

Employees Stock Option Outstanding ............................................................................................. 0.02 0.02

Profit and Loss Account .......................................................................................................................... 3,203.85 2,477.91

TOTAL ... 5,828.20 4,739.85

SCHEDULES FORMING PART OF THE BALANCE SHEET

78


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, SECULE - 3, SECULE - 3, SECULE - 3, SECULE - 3, SECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS 2009 2008

Rs. Crore Rs. Crore

PRIVATELY PLACED NON - CONVERTIBLE DEBENTURES

*Secured by a charge on all movable and immovable assetsunder the Debenture Trust Deed

(a) 11.30% Non-Convertible Debentures redeemable at par onDecember 09, 2013 ........................................................................................................................ 200.00 200.00

(b) 8.45% Non-Convertible Debentures redeemable at par onOctober 07, 2014 ............................................................................................................................. 300.00 -

Term Loans from Banks .......................................................................................................................... 50.00 250.00{Amount Payable within one year Rs. 50 Crore (Previous Year - Rs. 200 Crore)}*Secured by a Mortgage on certain immovable properties and hypothecationof all movable assets except book debts.

TOTAL ... 550.00 450.00

*The mortgage / charges indicated in above rank pari-passu inter-se and are subject to the prior charges in favour of the Company’s Bankerson specific movable assets for securing working capital requirements / guarantee facilities.

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 4, ULE - 4, ULE - 4, ULE - 4, ULE - 4, UNSECUNSECUNSECUNSECUNSECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS 2009 2008

Rs. Crore Rs. Crore

Long Term Loans

Financial Institution ................................................................................................................................. - 12.09{Paid during the year to Karnataka Road Development Corporation Limited (KRDC)in respect of Company’s share of loan availed by KRDC from HUDCO}

Deferred payment Liability - IDCOL .................................................................................................. 9.74 11.36{Amount Payable within one year Rs. 3.24 Crore (Previous Year - Rs. 3.24 Crore)}(Refer Note - 22)

Deferred Sales Tax Loans ....................................................................................................................... 7.18 8.58{Amount Payable within one year Rs. 1.41 Crore (Previous Year - Rs. 1.41 Crore)}

TOTAL ... 16.92 32.03

79


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ASSETSSETSSETSSETSSETSSSSSRs. Crore

GROSS BLOCK AT COST TOTAL NET BLOCKFIXED ASSETS DEPRECIATION/

AMORTISATION

As at Additions/ Deductions/ As at For the Upto As at As at31-12-2008 Adjustments Adjustments 31-12-2009 year ended 31-12-2009 31-12-2009 31-12-2008

31-12-2009

(a) (b) (c) (d) (e) (f) (g) (h) (i)

TTTTTangible Assets:angible Assets:angible Assets:angible Assets:angible Assets:

1. Freehold Land 100.54 48.21 0.03 148.72 - - 148.72 100.54

2. Leasehold Land 45.43 9.33 0.07 54.69 6.57 23.65 31.04 29.04

3. Buildings 547.57 163.47 0.95 710.09 18.43 133.27 576.82 431.54

4. Machinery, Plant and Kilns 3,892.16 617.82 46.11 4,463.87 237.95 1,923.89 2,539.98 2,179.37

5. Roads, Bridges and Fences 105.12 15.17 0.02 120.27 6.55 33.04 87.23 78.62

6. Water Works 26.86 2.09 0.13 28.82 1.43 22.08 6.74 6.08

7. Railway Sidings 54.58 11.74 - 66.32 2.37 27.28 39.04 29.67

8. Rolling Stock 67.64 26.14 0.19 93.59 2.04 49.84 43.75 19.65

9. Furniture, Fixtures and Equipments 96.00 14.99 3.17 107.82 5.54 30.44 77.38 69.21

10. Motor Cars, Trucks, etc. 21.63 1.70 1.50 21.83 1.58 11.31 10.52 10.72

11. Electrical Installations 827.26 119.95 11.14 936.07 41.97 368.19 567.88 491.72

Sub Total 5,784.79 1,030.61 63.31 6,752.09 324.43 2,622.99 4,129.10 3,446.16

I nI nI nI nI ntangible Assets:tangible Assets:tangible Assets:tangible Assets:tangible Assets:

12. Computer Software 50.88 4.28 - 55.16 17.66 44.99 10.17 23.54

13. Mining Rights - 19.02 - 19.02 - - 19.02 -

Sub Total 50.88 23.30 - 74.18 17.66 44.99 29.19 23.54

TOTAL 5,835.67 1,053.91 63.31 6,826.27 342.09 2,667.98 4,158.29 3,469.70

Previous Year 5,464.07 532.65 161.05 5,835.67 294.18 2,365.97 3,469.70

14. Capital Work-in-Progress 2,156.21 1,602.86{including Capital advanceRs. 201.74 Crore(Previous Year - Rs. 356.33 Crore)}

Notes:- (i) Cost of Shares Rs. 6,710 (Previous Year - Rs. 6,710) in various Co-operative Housing Societies, in respect of 20 residential flats (PreviousYear - 20) are included under Item No. 3 ‘Buildings’.

(ii) Rolling stock includes assets given on lease to Railways under “Own Your Wagons” Scheme, Gross Block Rs. 28.48 Crore (Previous Year -Rs. 28.48 Crore) and accumulated depreciation Rs. 28.48 Crore (Previous Year - Rs. 28.48 Crore)

(iii) Machinery Plant & Kilns, Roads Bridges & Fences and Electrical Installations include Gross Block of Rs. 1.48 Crore (Previous Year -Rs. 1.48 Crore), Rs. 26.17 Crore (Previous Year - Rs. 24.50 Crore), Rs. 11.20 Crore (Previous Year - Rs. 11.20 Crore) and Net Block Rs. 0.59 Crore(Previous Year - Rs. 0.89 Crore), Rs. 8.99 Crore (Previous Year - Rs. 12.44 Crore), Rs. Nil (Previous Year - Rs. Nil) respectively, in respect ofexpenditure incurred on capital assets, ownership of which does not vest in the Company.

80


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (At Cost unless otherwise stated) Face Value 2009 2008

Rs. Numbers Rs. Crore Rs. Crore Rs. Crore

TRADE INVESTMENTS

(a) Equity Shares - Fully Paid (Quoted):-

Shiva Cement Limited ............................................................................................ 2 2,15,00,000 23.65 23.65

(b) Equity Shares - Fully Paid (Unquoted):-

Alcon Cement Company Pvt. Ltd. ...................................................................... 10 4,08,001 22.25 22.25

45.90 45.90SUBSIDIARY COMPANIES

(a) Equity Shares - Fully Paid (Unquoted):-

(i) Bulk Cement Corporation (India) Limited ........................................... 10 3,18,42,050 37.27 37.27

(ii) Lucky Minmat Limited ................................................................................. 100 3,25,000 38.10 38.10

(iii) ACC Mineral Resources Limited (Formerly known asThe Cement Marketing Co. of India Ltd.) ............................................ 100 4,95,000 4.95 0.05(4,90,000 Shares Subscribed for Rs. 4.90 Crore during the year)

(iv) ACC Concrete Limited ................................................................................... 10 10,00,00,000 100.00 100.00

(v) National Limestone Company Pvt. Ltd. ................................................ 100 8,650 16.24 -(Acquired during the year)

(b) 1% Cumulative Redeemable Preference Share Fully paid (Unquoted)

ACC Concrete Limited (Subscribed during the year) ................................ 10 10,00,00,000 100.00 -

296.56 175.42OTHER INVESTMENTS

(a) GOVERNMENT AND TRUSTEE SECURITIES

(i) Quoted* ............................................................................................................... - - -

(ii) Unquoted**5.13% Himachal Pradesh Infrastructure Development Board Bonds 1,000,000 37 3.71 3.71{**includes Securities of the face value of Rs. 0.01 Crore(Previous Year - Rs. 0.01 Crore) - deposited with Governmentsand others as Security Deposits}

(b) Equity Shares - Fully Paid (Quoted):-# The India Cements Ltd. ................................................................................ 10 784 - -# Dalmia Cement (Bharat) Ltd. .................................................................... 2 1,865 - -# Mysore Cement Ltd. ...................................................................................... 10 350 - -# The Andhra Cement Company Ltd. ........................................................ 10 52 - -# HDFC Bank Ltd. ................................................................................................ 10 500 - -# Shree Digvijay Cement Company Ltd. ................................................... 10 180 - -# Panyam Cements & Mineral Industries Ltd. ...................................... 10 50 - -# OCL India Limited ........................................................................................... 2 240 - -

(c) Equity Shares - Fully Paid (Unquoted):-* Kanoria Sugar & General Mfg. Company Ltd. ................................... 10 4 - -* Bio - Tech Consortium India Ltd. ............................................................. 10 50,000 - -* Gujrat Composites Ltd. ................................................................................ 10 60 - -* Rohtas Industries Ltd. ................................................................................... 10 220 - -* The Jaipur Udyog Ltd. ................................................................................... 10 120 - -* The Sone Valley Portland Cement Company Ltd. ............................. 5 100 - -* The Travancore Cement Company Ltd. ................................................. 10 100 - -* Ashoka Cement Ltd. ...................................................................................... 10 50 - -* Digvijay Finlease Ltd. .................................................................................... 10 90 - -# Landmark Property development ........................................................... 2 720 - -# OCL Iron and Steel Eq ................................................................................... 2 720 - -

Total carried over ... 3.71 3.71

81


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (contd.) Face Value 2009 2008


Total brought over ... 3.71 3.71

(d) Investment in Mutual Funds (Unquoted):-

Prudential ICICI Super Institutional Plan - Daily Dividend .................... 10 7,069,405.848 - 7.07

DWS Insta Cash - Super Institutional - Daily Dividend .......................... 10 8,065,979.640 - 8.08

Birla Sunlife Short Term fund - Institutional - Daily Dividend ............ 10 7,065,714.341 - 7.07

DWS Insta Cash - Institutional - Daily Dividend ........................................ 10 10,063,210.843 - 10.08


Canara Robeco Liquid - Institutional Daily Dividend ............................... 10 10,040,726.106 - 10.08

Tata Liquid Super high Investment Fund - Daily Dividend ................... 1,000 90,468.965 - 10.08




DWS Insta Cash plus fund - Institutional Plan - Daily Dividend ........ 10 10,069,097.794 - 10.09


Reliance Liquidity Fund - Daily Dividend ....................................................... 10 11,076,022.874 - 11.08



Prudential ICICI Super Institutional plan - Daily Dividend .................... 10 10,055,155.795 - 10.06

ING Liquid Fund Super Institutional plan - Daily Dividend .................. 10 10,061,498.304 - 10.06


Reliance Medium Term Fund - Daily Dividend ............................................ 10 8,821,548.765 - 15.08


SBI Magnum Instacash Fund - Daily Dividend ........................................... 10 8,999,011.267 - 15.07


Sundaram BNP Paribas Money Fund - Super Inst - Daily Dividend .. 10 9,950,272.171 - 10.05


ING Liquid Fund -Super Institutional plan - Daily Dividend ................. 10 10,061,498.304 - 10.06


UTI Liquid Fund - Cash Plan - Institutional plan - Daily Dividend ..... 1,000 49,231.069 - 5.02

SBI - SHF - Liquid Plus Institutional plan - Daily Dividend .................... 10 10,024,924.823 - 10.03




Kotak Liquid - Institutional Premium - Daily Dividend ........................... 10 4,918,279.462 - 6.01

Sundaram BNP Paribas Money Fund - Super Inst - DDR ........................ 10 3,969,840.952 - 4.01

LIC Mutual Fund - Liquid - Dividend Plan ..................................................... 10 13,686,403.735 - 15.03





ING Liquid Fund - Super IP - Daily Dividend ................................................ 10 15,010,094.302 - 15.02




82

DBS Chola Liquid Institutional Dividend Reinvestment Plan ............... 10 11,939,905.440 - 12.00



Reliance Liquidity Fund .......................................................................................... 1,000 562,270.738 56.31 -

Reliance Liquidity Fund .......................................................................................... 10 10,618,395.460 18.16 -

Kotak Liquid Institutional Premium ................................................................. 10 70,463,707.811 75.37 -

Birla Sun Life Cash Plus Institutional Premium .......................................... 10 73,426,328.568 73.47 -

Templeton India TMA Super Institutional Plan .......................................... 10 46,179,212.866 46.23 -

DWS Insta Cash Institutional .............................................................................. 10 75,281,225.113 75.45 -

DBS Chola Liquid Institutional ........................................................................... 10 24,761,689.543 25.15 -

SBI Magnum Instacash Fund .............................................................................. 10 46,770,488.752 49.22 -

UTI Liquid Fund Cash Plan IP .............................................................................. 1,000 752,682.564 75.28 -

IDFC Cash Fund Plan C Institutional ............................................................... 10 44,213,496.169 44.22 -

Principal Cash Management Fund Institutional Premium ................... 10 37,098,651.717 37.16 -

LIC Mutual Fund Liquid Plan ............................................................................... 10 74,665,476.788 75.29 -

Canara Robeco Liquid Super Institutional .................................................... 10 27,466,856.675 34.08 -

HDFC Liquid Fund Premium Plan ...................................................................... 10 73,550,308.839 74.15 -

Tata Liquid Fund Ship ............................................................................................. 10 56,033,762.587 56.23 -

Fortis Overnight Fund Institutional Plus ....................................................... 10 40,109,222.677 40.12 -

Religare Liquid Fund Institutional Plan .......................................................... 10 30,095,986.326 30.14 -

Sundaram BNP Paribas Money Fund Super Inst DDR ............................. 10 17,019,213.569 17.08 -

Baroda Pioneer Liquid Fund Institutional ..................................................... 10 40,112,346.656 40.15 -

Fidelity Cash Fund Super IP ................................................................................. 10 9,031,218.350 9.03 -

Prudential ICICI Super Institutional Plan ....................................................... 100 7,106,565.893 75.14 -

DSP Black Rock Cash Plus Fund Institutional .............................................. 1,000 59,975.236 6.01 -

JP Morgan India Liquid Fund .............................................................................. 10 13,002,258.496 13.01 -

JM High Liquidity Super IP ................................................................................... 10 39,991,683.109 40.01 -

Sundaram BNP Paribas Money Fund Super Institutional ...................... 10 37,647,207.314 38.01 -

Axis Liquid Fund ....................................................................................................... 10 50,003.992 5.00 -

1,129.47 454.05

1,133.18 457.76

TOTAL ... 1,475.64 679.08

Notes (I) Aggregate Net Cost and Market Value of Company’s Investments :-

As at 31-12-2009 As at 31-12-2008

Aggregate Market Aggregate MarketNet Cost Value Net Cost ValueRs. Crore Rs. Crore Rs. Crore Rs. Crore

Quoted ................................................................................................ 23.65 19.58 23.65 11.87

Unquoted ........................................................................................... 1,451.99 655.43

Total Investments .......................................................................... 1,475.64 679.08

(II) All investments are “Long Term” except investment in Mutual funds.(III) #Denotes shares sold during the year.(IV) *Denotes amount less than Rs. 50,000.

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (contd.) Face Value 2009 2008



83

Schedule - 6, ISchedule - 6, ISchedule - 6, ISchedule - 6, ISchedule - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (Contd.)(V) During the year the Company acquired and sold the following investments in Mutual Funds

PARTICULARS Face Value No. of Units Purchase CostRs. Rs. Crore

BARODA PIONEER LIQUID FUND - INSTITUTIONAL - DAILY DIVIDEND .................................. 10 64,637,206.466 65.00

BIRLA SUN LIFE - CASH PLUS - INSTITUTIONAL PREMIUM - DIVIDEND ................................ 10 93,817,056.739 94.00

BIRLA SUN LIFE - SHORT TERM FUND - INSTITUTIONAL - DAILY DIVIDEND ........................ 10 15,968,860.722 16.00

CANARA ROBECO LIQUID - INSTITUTIONAL DAILY DIVIDEND ................................................... 10 19,918,334.827 20.00

CANARA ROBECO LIQUID - SUPER INSTITUTIONAL DIVIDEND ................................................. 10 151,379,348.770 193.00

CANARA ROBECO LIQUID PLUS - SUPER INSTITUTIONAL PLAN - DDR ................................... 10 8,059,901.186 10.00

CANARA ROBECO TREASURY ADVANTAGE - SUPER INST - DIVIDEND ................................... 10 5,641,930.830 7.00

DBS CHOLA FREEDOM INCOME - STP - INSTITUTIONAL - DIVIDEND ..................................... 10 3,938,869.742 14.00

DBS CHOLA LIQUID INSTITUTIONAL DIVIDEND REINVESTMENT PLAN ................................. 10 87,307,880.297 88.00

DSP BLACK ROCK CASH PLUS FUND - INSTITUTIONAL - DIVIDEND ....................................... 1,000 439,956.004 44.00

DSP BLACK ROCK MONEY MANAGER FUND - INSTITUTIONAL PLAN - DIVIDEND ........... 1,000 469,743.194 47.00

DWS INSTA CASH - INSTITUTIONAL - DAILY DIVIDEND ................................................................ 10 129,584,600.623 130.00

DWS INSTA CASH - SUPER INSTITUTIONAL - DAILY DIVIDEND ................................................. 10 19,960,079.840 20.00

DWS ULTRA SHORT TERM FUND - INSTITUTIONAL - DIVIDEND ............................................... 10 3,994,008.987 4.00

FIDELITY CASH FUND - SUPER IP - DAILY DIVIDEND ...................................................................... 10 9,947,081.526 10.00

FORTIS OVERNIGHT FUND - INSTITUTIONAL PLUS - DAILY DIVIDEND .................................. 10 79,976,007.198 80.00

HDFC CASH MANAGEMENT FUND - SAVINGS PLAN - DIVIDEND ........................................... 10 6,581,174.081 7.00

HDFC LIQUID FUND - PREMIUM PLAN - DIVIDEND ....................................................................... 10 138,664,580.417 193.00

HDFC LIQUID FUND - PREMIUM PLUS PLAN - DIVIDEND ........................................................... 10 4,078,369.957 5.00

HSBC CASH FUND - INSTITUTIONAL PLUS - DAILY DIVIDEND ................................................... 10 8,994,962.821 9.00

IDFC CASH FUND - PLAN C - INSTITUTIONAL - DDR ...................................................................... 10 140,964,761.910 172.00

ING LIQUID FUND - SUPER IP - DAILY DIVIDEND ............................................................................ 10 52,967,284.526 53.00

JM HIGH LIQUIDITY - SUPER IP - DAILY DIVIDEND ......................................................................... 10 148,754,554.984 149.00

JP MORGAN INDIA LIQUID FUND - DIVIDEND ................................................................................. 10 5,995,263.742 6.00

KOTAK LIQUID - INSTITUTIONAL PREMIUM - DAILY DIVIDEND ................................................. 10 147,201,937.341 190.00

LIC MUTUAL FUND - LIQUID - DIVIDEND PLAN ............................................................................... 10 231,327,583.537 254.00

PRINCIPAL CASH MANAGEMENT FUND - INSTITUTIONAL PREMIUM .................................... 10 119,991,600.588 120.00

PRUDENTIAL ICICI SUPER INSTITUTIONAL PLAN - DAILY DIVIDEND ....................................... 10 148,972,755.513 149.00

RELIANCE LIQUIDITY FUND - DAILY DIVIDEND ................................................................................ 10 175,945,457.508 182.00

RELIGARE LIQUID FUND - INSTITUTIONAL PLAN - DAILY DIVIDEND ....................................... 10 64,958,426.607 65.00

RELIGARE ULTRA SHORT TERM FUND - INSTITUTIONAL - DIVIDEND ..................................... 10 4,992,162.305 5.00

SBI PREMIER LIQUID FUND - SUPER INSTITUTIONAL - DIVIDEND ........................................... 10 16,944,928.981 17.00

SBI MAGNUM INSTACASH FUND - DIVIDEND .................................................................................. 10 90,744,658.424 404.00

SUNDARAM BNP PARIBAS MONEY FUND - SUPER INSTITUTIONAL - DDR .......................... 10 159,480,154.131 161.00

TATA LIQUID FUND - SHIP - DAILY DIVIDEND ................................................................................... 1,000 1,911,136.633 213.00

TEMPLETON INDIA - TMA - SUPER INSTITUTIONAL PLAN - DDR .............................................. 1,000 1,968,675.107 222.00

UTI LIQUID FUND - CASH PLAN - IP - DAILY DIVIDEND ................................................................ 1,000 1,608,717.365 164.00

TOTAL ... 3,582.00


84

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7, ILE - 7, ILE - 7, ILE - 7, ILE - 7, INVENTNVENTNVENTNVENTNVENTORORORORORIIIIIESESESESES 2009 2008

Rs. Crore Rs. Crore

Raw Materials .................................................................................................................................................... 92.05 73.37

Stores & Spare Parts, Packing Material and Fuels ............................................................................. 429.89 491.60

Work-in-Progress ............................................................................................................................................... 168.96 149.44

Finished Goods .................................................................................................................................................. 88.08 78.86

TOTAL ... 778.98 793.27

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 8, SULE - 8, SULE - 8, SULE - 8, SULE - 8, SUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS 2009 2008


SUNDRY DEBTORS (SECURED AND CONSIDERED GOOD)

(a) Over Six Months ..................................................................................................................................... 0.01 0.02

(b) Others .......................................................................................................................................................... 35.40 62.66

35.41 62.68

SUNDRY DEBTORS (UNSECURED)

(a) Over Six Months -

(i) Sale of Products and Services -

Considered Good .......................................................................................................................... 3.76 4.53

Considered Doubtful ................................................................................................................... 0.28 2.37

4.04 6.90(ii) Railway, Insurance and Other Claims {includes Rs. 90.70 Crore due

from Central / State Governments (Previous Year - Rs. 91.57 Crore)}

Considered Good .......................................................................................................................... 51.51 97.05{includes Rs. Nil due from Subsidiary Company (Previous Year - Rs. 0.60 Crore)}Considered Doubtful ................................................................................................................... 47.97 0.34

99.48 97.39

103.52 104.29Less:Provision made for Bad and Doubtful Debts .................................................................. 48.25 2.71{Refer Note - 15B(c)}

55.27 101.58

(b) Others - (Considered Good)

(i) Sale of Products and Services ................................................................................................. 77.70 85.69{includes Rs. 3.08 Crore due from Subsidiary Companies(Previous Year - Rs. 12.63 Crore)}{includes Rs. 1.02 Crore due from Company under the same management(Previous Year - Rs. 3.27 Crore)}

(ii) Railway, Insurance and Other Claims {includes Rs. 33.49 Crore duefrom Central / State Governments (Previous Year - Rs. 50.60 Crore)} .................. 35.32 60.22

113.02 145.91

168.29 247.49

TOTAL ... 203.70 310.17


85

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 9, CLE - 9, CLE - 9, CLE - 9, CLE - 9, CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANK BK BK BK BK BALANCALANCALANCALANCALANCESESESESES 2009 2008

Rs. Crore Rs. Crore

Cash on Hand ..................................................................................................................................................... 2.23 0.85

Balance with Scheduled Banks

In Current Account ................................................................................................................................ 93.40 86.71

In Fixed Deposits .................................................................................................................................... 650.74 896.67

Post Office Savings Accounts ...................................................................................................................... 0.01 0.01{Maximum balance during the year Rs. 0.01 Crore (Previous Year - Rs. 0.01 Crore)}

TOTAL ... 746.38 984.24

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 10, OLE - 10, OLE - 10, OLE - 10, OLE - 10, OTTTTTHHHHHER CUER CUER CUER CUER CURRRRRRRRRRENT AENT AENT AENT AENT ASSETSSETSSETSSETSSETSSSSS 2009 2008

Rs. Crore Rs. Crore

Accrued Interest ................................................................................................................................................ 5.95 15.07

Assets held for disposal ................................................................................................................................ 5.04 5.60

TOTAL ... 10.99 20.67

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULELELELELE ----- 11,11,11,11,11, LLLLLOOOOOANSANSANSANSANS ANANANANANDDDDD ADADADADADVVVVVANCANCANCANCANCESESESESES (Unsecured, Considered Good, unless otherwise stated) 2009 2008


Balances with Excise, Customs and Port Trust Authorities on Current Accounts .............. 136.35 127.11

Sundry Advances and Deposits, etc.

Advances Recoverable in cash or in kind or for value to be received* ........................ 139.21 132.40

Advances and Deposits with Railways, Government Bodies and Others

Considered Good ................................................................................................................................. 170.68 172.38

Considered Doubtful ......................................................................................................................... 38.88 38.23

209.56 210.61

Less - Provision made for Doubtful Advances ..................................................................................... 38.88 38.23

170.68 172.38

Advance payments against taxes ............................................................................................................. 38.31 105.32

Loans and Advances to Subsidiary Companies .................................................................................. 69.87 114.07(Refer Note - 20)

TOTAL ... 554.42 651.28

Note -*Includes due by Officers Rs. 0.22 Crore (Previous Year - Rs. 0.36 Crore) Maximum balance during the year Rs. 0.45 Crore(Previous Year - Rs. 0.81 Crore)


86

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, CULE - 12, CULE - 12, CULE - 12, CULE - 12, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES 2009 2008


Sundry Creditors

Payable to Subsidiaries .................................................................................................................................. 1.63 3.93

Others .................................................................................................................................................................... 1,633.39 1,458.39(Refer Note - 18)

Deposits from Dealers and Others ........................................................................................................... 393.69 316.28

Investor Education and Protection Fund(Appropriate amount shall be transferred to “Investor Educationand Protection Fund” if and when due)

Unpaid Dividend ............................................................................................................................................... 24.02 20.77

Unpaid Matured Deposits ............................................................................................................................ 0.18 0.23

24.20 21.00

Interest on Secured Loans accrued but not due ................................................................................ 7.43 2.19

TOTAL ... 2,060.34 1,801.79

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 13, PRLE - 13, PRLE - 13, PRLE - 13, PRLE - 13, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS 2009 2008

Rs. Crore Rs. Crore

Provision for Retirement Benefits ............................................................................................................. 99.69 154.91(Refer note - 11)

Provision for Mines Restoration ................................................................................................................ 9.98 6.98(Refer note - 13)

Provision for Income Tax ............................................................................................................................... 696.67 580.22

Provision for Fringe Benefit Tax ................................................................................................................. - 2.24

Proposed Dividend ........................................................................................................................................... 244.06 187.68

Dividend Distribution Tax ............................................................................................................................. 41.48 31.90

TOTAL ... 1,091.88 963.93


87

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 14, OLE - 14, OLE - 14, OLE - 14, OLE - 14, OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME 2009 2008


Other OperOther OperOther OperOther OperOther Operaaaaating Incting Incting Incting Incting Incomeomeomeomeome ............................................................................................................................ 163.70 165.53{includes Gain on Exchange (Net) - Rs. 3.66 Crore (Previous Year - Rs. 0.18 Crore)}(Refer Note - 23)

Other IncOther IncOther IncOther IncOther IncomeomeomeomeomeProfit on Sale of Investments ..................................................................................................................... 0.81 1.12

Interest on Income tax Refund (Previous Year - Net of interest Rs. 42.40 Crore) ................. - 23.14

Other Interest Income .................................................................................................................................... 41.00 55.88{Inclusive of Tax Deducted at source - Rs. 10.11 Crore (Previous Year - Rs. 9.49 Crore)}

Dividend from Long Term Trade Investments ..................................................................................... 1.02 8.62{Includes Rs. Nil Dividend from Subsidiary Company (Previous Year - Rs. 7.60 Crore)}

Dividend from other Investments ............................................................................................................ 34.58 34.42

77.41 123.18

TOTAL ... 241.11 288.71

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 15, MLE - 15, MLE - 15, MLE - 15, MLE - 15, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES 2009 2008


MMMMMANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ENG ENG ENG ENG EXPENSESXPENSESXPENSESXPENSESXPENSES

Purchase of Cement ........................................................................................................................................ 93.16 87.36

Raw Materials Consumed ............................................................................................................................ 891.51 799.12

Stores and Spare parts Consumed ........................................................................................................... 10.03 13.86

Packing Materials Consumed ..................................................................................................................... 238.72 280.14

Power and Fuel .................................................................................................................................................. 1,539.65 1,598.96

Repairs to Building .......................................................................................................................................... 14.14 14.72

Repairs to Machinery ...................................................................................................................................... 323.30 276.21

Repairs to Other Items ................................................................................................................................... 67.87 70.92

Royalties .............................................................................................................................................................. 98.39 86.69

Excise Duties (including Education Cess) .............................................................................................. 84.54 117.08{Includes captive consumption of Clinker Rs. 85.37 Crore (Previous Year - Rs. 119.01 Crore)}

3,361.31 3,345.06

PPPPPAAAAAYYYYYMENTMENTMENTMENTMENTS S S S S TTTTTO ANO ANO ANO ANO AND PRD PRD PRD PRD PROOOOOVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLOOOOOYYYYYEESEESEESEESEES

Salaries, Wages, Dearness Allowance and Bonus .............................................................................. 318.27 311.23

Contributions / Provisions to and for Provident and Other Funds {Refer Note - 11(g)} .. 18.00 63.53

Workmen and Staff Welfare Expenses ................................................................................................... 31.44 41.56

367.71 416.32

ADADADADADMIMIMIMIMINNNNNISISISISISTTTTTRRRRRAAAAATTTTTIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES

Rent ......................................................................................................................................................................... 32.59 33.22

Rates and Taxes {includes Wealth Tax Rs. 1.27 Crore (Previous Year - Rs. 0.79 Crore)} ..... 101.45 98.75

Insurance .............................................................................................................................................................. 17.60 17.86

Loading, Transportation and Other Charges ........................................................................................ 169.69 176.98

Discount, Rebates and Allowances .......................................................................................................... 93.49 105.20

Commission on Sales ..................................................................................................................................... 23.12 20.24

Other Expenses {includes Loss on sale / write off of Fixed Assets (Net) Rs. 3.24 Crore

(Previous Year - Rs. 8.91 Crore)} ................................................................................................................... 270.48 286.55

Total carried over ... 708.42 738.80

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

88

Provision for Bad and Doubtful Debts {Refer Note - 15B(c)} ........................................................ 31.26 0.71

Advertisement ................................................................................................................................................... 53.16 47.56

Outward Freight Charges on Cement etc. ............................................................................................ 1,054.41 1,001.58

1,847.25 1,788.65(I(I(I(I(INCNCNCNCNCRRRRREEEEEAAAAASE) / DECSE) / DECSE) / DECSE) / DECSE) / DECRRRRREEEEEAAAAASE ISE ISE ISE ISE IN SN SN SN SN STTTTTOOOOOCCCCCKKKKKS IS IS IS IS IN N N N N TTTTTRRRRRADE ANADE ANADE ANADE ANADE AND D D D D WWWWWORORORORORKKKKK-I-I-I-I-IN-PRN-PRN-PRN-PRN-PROOOOOGRGRGRGRGRESSESSESSESSESSClosing Stock -Closing Stock -Closing Stock -Closing Stock -Closing Stock -

Finished Goods .................................................................................................................................................. 88.08 78.86

Work-in-Progress ............................................................................................................................................... 168.96 149.44

257.04 228.30

Opening Stock -Opening Stock -Opening Stock -Opening Stock -Opening Stock -

Finished Goods .................................................................................................................................................. 78.86 81.26

Work-in-Progress ............................................................................................................................................... 149.44 146.71

228.30 227.97

(28.74) (0.33)

TOTAL ... 5,547.53 5,549.70

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 16, ILE - 16, ILE - 16, ILE - 16, ILE - 16, INTNTNTNTNTERERERERERESESESESESTTTTT 2009 2008

Rs. Crore Rs. Crore

Debentures .......................................................................................................................................................... 28.99 1.36

Term Loans .......................................................................................................................................................... 15.97 16.36

Interest on Income Tax (Net of interest on refund Rs. 20.33 Crore) ......................................... 17.58 -

Others .................................................................................................................................................................... 48.14 23.60

110.68 41.32

Less - Adjustments for -Interest Capitalised ......................................................................................................................................... 26.38 1.36

TOTAL ... 84.30 39.96

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 17, ELE - 17, ELE - 17, ELE - 17, ELE - 17, EXXXXXCCCCCEPEPEPEPEPTTTTTIONAL ITIONAL ITIONAL ITIONAL ITIONAL ITEMEMEMEMEMSSSSS 2009 2008

Rs. Crore Rs. Crore

Profit on Sale of Investments in Subsidiary ......................................................................................... - 36.57

Profit on Sale of Land ..................................................................................................................................... - 12.29

TOTAL ... - 48.86

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 15, MLE - 15, MLE - 15, MLE - 15, MLE - 15, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSES XPENSES XPENSES XPENSES XPENSES (contd.) 2009 2008


Total brought over ... 708.42 738.80

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

89

SCHEDULES FORMING PART OFTHE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE – 18, NOLE – 18, NOLE – 18, NOLE – 18, NOLE – 18, NOTTTTTES ES ES ES ES TTTTTO AO AO AO AO ACCCCCCCCCCOUOUOUOUOUNNNNNTTTTTSSSSS

1.1.1.1.1. Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontion

(i) The financial statements have been prepared to comply in all material aspects in respect with the Notified Accounting Standardby Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

(ii) Financial statements are based on historical cost and are prepared on accrual basis.

(iii) Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2.2.2.2.2. Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestes

The preparation of financial statements in conformity with generally accepted accounting principles requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dateof the financial statements and the results of operations during the reporting period end. Although these estimates are based uponmanagement’s best knowledge of current events and actions, actual results could differ from these estimates.

3.3.3.3.3. SignificanSignificanSignificanSignificanSignificanttttt acc acc acc acc accounounounounounting policiesting policiesting policiesting policiesting policies

(i)(i)(i)(i)(i) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue canbe reliably measured.

Sale of PrSale of PrSale of PrSale of PrSale of Producoducoducoducoducts and Serts and Serts and Serts and Serts and Servicesvicesvicesvicesvices

a) Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Exciseduties deducted from turnover (gross) are the amounts that are included in the amount of turnover (gross) and not theentire amount of liability that arose during the year. Excise duties in respect of finished goods are shown separately as anitem of Manufacturing and Other Expenses and included in the valuation of finished goods.

b) Sales include the amount of Sales Tax / VAT refunds received / due in accordance with incentive schemes.

InInInInInterterterterterestestestestest and Dividend Inc and Dividend Inc and Dividend Inc and Dividend Inc and Dividend Incomeomeomeomeome

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.Dividend income is recognised when the shareholders’ right to receive dividend is established by the Balance Sheet date.

(ii)(ii)(ii)(ii)(ii) AccAccAccAccAccounounounounounting of claimsting of claimsting of claimsting of claimsting of claims

a) Claims receivable are accounted at the time when such income has been earned by the Company depending on thecertainty of receipts. Claims payable are accounted at the time of acceptance.

b) Claims raised by Government Authorities regarding taxes and duties, which are disputed by the Company, are accountedbased on the merits of each claim.

(iii)(iii)(iii)(iii)(iii) Debenture / Share issue expenses and premium payable on Debentures are adjusted in the same year against the SecuritiesPremium Account as permitted by Section 78(2) of the Companies Act, 1956.

(iv)(iv)(iv)(iv)(iv) FFFFFixixixixixed Assetsed Assetsed Assetsed Assetsed Assets

a) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment losses.

b) Depreciation is provided on the straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, ona pro-rata basis.

c) Cost of leasehold land is amortised over the period of the lease.

d) In respect of quarry freehold land, amortisation reserve is created by amortising the cost over the number of years of themining rights of the quarries.

e) Capital assets whose ownership does not vest in the Company have been depreciated over the period of five years.

f) Machinery spares which can be used only in connection with a particular item of Fixed Assets and the use of which isirregular, are capitalized at cost net of Cenvat and are depreciated over the remaining useful life of the related asset. Thewritten down value of such spares is charged to the Profit and Loss Account, on issue for consumption.

90

(v)(v)(v)(v)(v) BorrBorrBorrBorrBorrowing Cowing Cowing Cowing Cowing Costsostsostsostsosts

Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended useare included to the extent they relate to the period till such assets are ready to be put to use. All other borrowing costs arecharged to revenue.

(vi)(vi)(vi)(vi)(vi) InInInInIntangiblestangiblestangiblestangiblestangibles

a) Computer Software cost is amortised over a period of three years.

b) Costs incurred to gain access to mineral reserves are capitalised and depreciated over the life of the quarry, which is basedon the estimated tonnes of raw materials to be extracted from the reserves.

(vii)(vii)(vii)(vii)(vii) ImpairmenImpairmenImpairmenImpairmenImpairmenttttt

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based oninternal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimatedrecoverable amount. The recoverable amount is greater of the asset’s net selling price and value in use. In assessing the value inuse, the estimated future cash flows are discounted to the present value at the weighted average cost of capital. Previouslyrecognized impairment loss is further provided or reversed depending on changes in circumstances.

(viii)(viii)(viii)(viii)(viii) EEEEExpenditurxpenditurxpenditurxpenditurxpenditure during ce during ce during ce during ce during construconstruconstruconstruconstruction periodtion periodtion periodtion periodtion period

In case of new projects and substantial expansion of existing factories, expenditure incurred including trial production expensesnet of revenue earned, and attributable interest and financing costs, prior to commencement of commercial production arecapitalised.

(ix)(ix)(ix)(ix)(ix) InInInInInvvvvvestmenestmenestmenestmenestmentststststs

Current investments are carried at the lower of cost or fair value. Long term investments are stated at cost. Provision fordiminution in the value of long term investments is made only if such a decline is other than temporary.

(x)(x)(x)(x)(x) LLLLLeaseseaseseaseseaseseases

Lease payments under operating lease are recognised as an expense in the Profit and Loss Account on a straight line basis overthe lease term.

(xi)(xi)(xi)(xi)(xi) RRRRResearesearesearesearesearch and Dech and Dech and Dech and Dech and Devvvvvelopmenelopmenelopmenelopmenelopmenttttt

Expenditure on research phase is recognised as an expense when it is incurred. Expenditure on development phase whichresults in creation of assets is included in Fixed Assets.

(xii)(xii)(xii)(xii)(xii) InInInInInvvvvvenenenenentoriestoriestoriestoriestories

Inventories are valued as follows:

a) Raw materials, fuels, packing materials, stores and spares

Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories arenot written down below cost if the finished products in which they will be incorporated are expected to be sold at or abovecost. Cost is determined on a weighted average basis.

b) Work-in-progress and finished goods

Lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturingoverheads based on normal operating capacity. Cost of finished goods includes excise duty.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion andestimated costs necessary to make the sale.

(xiii)(xiii)(xiii)(xiii)(xiii) FFFFForororororeign curreign curreign curreign curreign currency trency trency trency trency transacansacansacansacansactionstionstionstionstions

Foreign currency transactions are initially recorded at the rates of exchange prevailing on the date of transactions. Foreigncurrency monetary items are subsequently reported using the closing rate. Non-monetary items which are carried in terms ofhistorical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Exchangedifferences arising on the settlement of monetary items or on reporting Company’s monetary items at rates different fromthose at which they were initially recorded during the year, or reported in previous financial statements, are recognised as

91

income or as expenses in the year in which they arise. The financial statements of an integral foreign operation are translatedas if the transactions of the foreign operation have been those of the Company itself. The premium on forward exchangecontracts not intended for trading or speculation purpose is amortized as expenses over the life of the contract.

(xiv)(xiv)(xiv)(xiv)(xiv) EmploEmploEmploEmploEmployyyyyee benefitsee benefitsee benefitsee benefitsee benefits

a) Defined Contribution Plan

Contribution to Officer’s Superannuation Fund, ESIC and Labour Welfare Fund are recognised as an expense in the Profitand Loss Account, as they are incurred. There are no other obligations other than the contribution payable to the respectivetrusts.

b) Defined Benefit Plan and Other Long Term Benefits

Retirement benefits in the form of gratuity, additional gratuity, provident fund, post retirement medical benefit schemes,medical benefits under voluntary retirement scheme and other long term benefits in the form of leave encashment, silverjubilee and long service awards are determined using the projected unit credit method as at Balance Sheet date. Actuarialgains / losses are recognized immediately in the Profit and Loss Account.

c) Short term compensated absences are provided based on past experience of leave availed.

d) Payments made under the Voluntary Retirement Scheme are charged to the Profit and Loss Account immediately.

(xv)(xv)(xv)(xv)(xv) EmploEmploEmploEmploEmployyyyyees Stock Option Schemeees Stock Option Schemeees Stock Option Schemeees Stock Option Schemeees Stock Option Scheme

The intrinsic value of option granted under Employees Stock Option Schemes has been deferred, to be written off over thevesting period.

(xvi)(xvi)(xvi)(xvi)(xvi) IncIncIncIncIncome taxome taxome taxome taxome taxeseseseses

Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at theamount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflectsthe impact of current year timing differences between taxable income and accounting income for the year and reversal oftiming differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable incomewill be available against which such deferred tax assets can be realised. Deferred tax assets are reviewed at each Balance Sheetdate.

(xvii)(xvii)(xvii)(xvii)(xvii) CCCCCononononontingencies / Prtingencies / Prtingencies / Prtingencies / Prtingencies / Prooooovisionsvisionsvisionsvisionsvisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow ofresources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can bemade. Provisions are not discounted to its present value and are determined based on best estimate required to settle theobligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current bestestimates. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefitis remote.

(xviii)(xviii)(xviii)(xviii)(xviii) Mines RMines RMines RMines RMines Restorestorestorestorestoraaaaation Etion Etion Etion Etion Expenditurxpenditurxpenditurxpenditurxpenditureeeee

The Company provides for the estimated expenditure required to restore quarries and mines. The initial recognition of theprovision for mines restoration cost comprises of the estimated costs for restoration caused by operations necessary before theraw materials can be exploited. Actual expenses for restoration are charged directly against the provision. The present obligationis revised annually based on technical estimates by internal or external specialists.

4.4.4.4.4. SegmenSegmenSegmenSegmenSegmenttttt R R R R Reporeporeporeporeportingtingtingtingting

The Company has only one business segment ‘Cement’ as its primary segment and hence disclosure of segment-wise information isnot applicable under Accounting Standard 17 - ‘Segmental Information’ notified pursuant to the Companies (Accounting Standards)Rules, 2006 (as amended).

The Company caters mainly to the needs of the domestic market. The export turnover is not significant in the context of total turnover.As such there are no reportable Geographical Segments.

92

5.5.5.5.5. RRRRRelaelaelaelaelated Pted Pted Pted Pted Parararararty Disclosurty Disclosurty Disclosurty Disclosurty Disclosureeeee

(A)(A)(A)(A)(A) PPPPParararararticulars of Subsidiaries / Associaticulars of Subsidiaries / Associaticulars of Subsidiaries / Associaticulars of Subsidiaries / Associaticulars of Subsidiaries / Associate / Prte / Prte / Prte / Prte / Promoter Gromoter Gromoter Gromoter Gromoter Group Coup Coup Coup Coup Companiesompaniesompaniesompaniesompanies

Name of the RName of the RName of the RName of the RName of the Relaelaelaelaelated Pted Pted Pted Pted Pararararartytytytyty NaNaNaNaNaturturturturture of Re of Re of Re of Re of Relaelaelaelaelationshiptionshiptionshiptionshiptionship

(i) Bulk Cement Corporation (India) Limited Subsidiary Company(ii) ACC Mineral Resources Limited (Formerly The Cement

Marketing Company of India Limited) Subsidiary Company(iii) Lucky Minmat Limited Subsidiary Company(iv) ACC Concrete Limited Subsidiary Company(v) National Limestone Company Private Limited Subsidiary Company w.e.f. April 20, 2009(vi) ACC Machinery Company Limited Subsidiary Company up to March 10, 2008(vii) Alcon Cement Company Private Limited Associate Company from April 01, 2008(viii) Ambuja Cement India Private Limited Promoter Group Company(ix) Ambuja Cements Limited Promoter Group Company(x) Holderind Investments Limited Promoter Group Company(xi) Holcim (India) Private Limited Promoter Group Company(xii) Holcim Services (Asia) Limited Promoter Group Company(xiii) Holcim Group Support Limited Promoter Group Company(xiv) Holcim Singapore Limited Promoter Group Company(xv) Holcim Trading FZCO Promoter Group Company(xvi) Holcim (Lanka) Ltd. Promoter Group Company(xvii) P T Holcim Indonesia Tbk Promoter Group Company(xviii) Holcim Services (South Asia) Limited Promoter Group Company(xix) Holcim Foundation Promoter Group Entity(xx) Holcim Ltd. Promoter Group Company(xxi) Siam City Concrete Co. Limited Promoter Group Company(xxii) Siam City Cement Public Company Limited Promoter Group Company(xxiii) National Cement Factory Promoter Group Company(xxiv) Holcim Bangladesh Limited Promoter Group Company

(B)(B)(B)(B)(B) KKKKKeeeeey Managemeny Managemeny Managemeny Managemeny Managementtttt P P P P Personnelersonnelersonnelersonnelersonnel


Mr. Sumit Banerjee Managing Director

(((((C)C)C)C)C) TTTTTrrrrransacansacansacansacansactions with Subsidiartions with Subsidiartions with Subsidiartions with Subsidiartions with Subsidiary Cy Cy Cy Cy Companiesompaniesompaniesompaniesompanies

2009 2008Rs. Crore Rs. Crore

(i)(i)(i)(i)(i) PPPPPurururururchase of Fchase of Fchase of Fchase of Fchase of Finished / Unfinished goods / Rinished / Unfinished goods / Rinished / Unfinished goods / Rinished / Unfinished goods / Rinished / Unfinished goods / Raw Maaw Maaw Maaw Maaw Materialsterialsterialsterialsterials 1.941.941.941.941.94 2.762.762.762.762.76

Lucky Minmat Limited 1.93 0.10

ACC Machinery Company Limited - 2.64

Others 0.01 0.02

(ii)(ii)(ii)(ii)(ii) Sale of FSale of FSale of FSale of FSale of Finished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goods 72.7172.7172.7172.7172.71 138.23138.23138.23138.23138.23

ACC Concrete Limited 72.71 138.23

(iii)(iii)(iii)(iii)(iii) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses / Cxpenses / Cxpenses / Cxpenses / Cxpenses / Costostostostost of Ma of Ma of Ma of Ma of Materials / Storterials / Storterials / Storterials / Storterials / Stores Pes Pes Pes Pes Paidaidaidaidaid 14.8314.8314.8314.8314.83 20.3820.3820.3820.3820.38

ACC Concrete Limited 0.46 8.79

Bulk Cement Corporation (India) Limited 9.59 11.59

Lucky Minmat Limited 4.58 -----

Others 0.20 -----

(iv)(iv)(iv)(iv)(iv) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses / Cxpenses / Cxpenses / Cxpenses / Cxpenses / Costostostostost of Ma of Ma of Ma of Ma of Materials / Storterials / Storterials / Storterials / Storterials / Stores Res Res Res Res Receiveceiveceiveceiveceivededededed 3.523.523.523.523.52 3.033.033.033.033.03

ACC Concrete Limited 2.35 2.25ACC Mineral Resources Limited 1.05 -Bulk Cement Corporation (India) Limited (0.03) 0.51Others 0.15 0.27

93

(v)(v)(v)(v)(v) RRRRRendering of Serendering of Serendering of Serendering of Serendering of Servicesvicesvicesvicesvices 0.670.670.670.670.67 2.322.322.322.322.32ACC Concrete Limited* (0.05) 1.56Bulk Cement Corporation (India) Limited 0.72 0.76

(vi)(vi)(vi)(vi)(vi) RRRRReceiving of Sereceiving of Sereceiving of Sereceiving of Sereceiving of Servicesvicesvicesvicesvices 11.2811.2811.2811.2811.28 12.0112.0112.0112.0112.01Bulk Cement Corporation (India) Limited 11.28 11.17Others - 0.84

(vii)(vii)(vii)(vii)(vii) InInInInInterterterterterestestestestest on In on In on In on In on Inter Cter Cter Cter Cter Corpororpororpororpororporaaaaate Depositte Depositte Depositte Depositte Deposit / Other adv / Other adv / Other adv / Other adv / Other advances rances rances rances rances receiveceiveceiveceiveceived during the yed during the yed during the yed during the yed during the yearearearearear ----- 4.444.444.444.444.44ACC Concrete Limited* - 4.44

(viii)(viii)(viii)(viii)(viii) InInInInInvvvvvestmenestmenestmenestmenestmenttttt in Subsidiar in Subsidiar in Subsidiar in Subsidiar in Subsidiary in Equity Shary in Equity Shary in Equity Shary in Equity Shary in Equity Share Ce Ce Ce Ce Capitalapitalapitalapitalapital 21.1421.1421.1421.1421.14 110.36110.36110.36110.36110.36ACC Concrete Limited ----- 99.95ACC Mineral Resources Limited 4.90 -National Limestone Company Pvt. Ltd. 16.24 -Others ----- 10.41

(ix)(ix)(ix)(ix)(ix) InInInInInvvvvvestmenestmenestmenestmenestmenttttt in Subsidiar in Subsidiar in Subsidiar in Subsidiar in Subsidiary in Pry in Pry in Pry in Pry in Prefefefefeferererererence Sharence Sharence Sharence Sharence Share Ce Ce Ce Ce Capitalapitalapitalapitalapital 100.00100.00100.00100.00100.00 -----ACC Concrete Limited 100.00 -

(x)(x)(x)(x)(x) TTTTTrrrrransfansfansfansfansfer of Rer of Rer of Rer of Rer of Ready Mix Ceady Mix Ceady Mix Ceady Mix Ceady Mix Concroncroncroncroncrete Business to Subsidiarete Business to Subsidiarete Business to Subsidiarete Business to Subsidiarete Business to Subsidiaryyyyy ----- 100.00100.00100.00100.00100.00ACC Concrete Limited ----- 100.00

(xi)(xi)(xi)(xi)(xi) Dividend RDividend RDividend RDividend RDividend Receiveceiveceiveceiveceivededededed ----- 7.607.607.607.607.60ACC Machinery Company Limited - 7.60

(xii)(xii)(xii)(xii)(xii) PPPPPurururururchase of Fchase of Fchase of Fchase of Fchase of Fixixixixixed Assetsed Assetsed Assetsed Assetsed Assets 0.060.060.060.060.06 0.830.830.830.830.83ACC Concrete Limited 0.06 -ACC Machinery Company Limited - 0.83

(xiii)(xiii)(xiii)(xiii)(xiii) InInInInInter Cter Cter Cter Cter Corpororpororpororpororporaaaaate Deposits / Other advte Deposits / Other advte Deposits / Other advte Deposits / Other advte Deposits / Other advances givances givances givances givances given during the yen during the yen during the yen during the yen during the yearearearearear 78.1378.1378.1378.1378.13 118.35118.35118.35118.35118.35ACC Concrete Limited 78.00 118.35ACC Mineral Resources Limited 0.13 -

(xiv)(xiv)(xiv)(xiv)(xiv) InInInInInter Cter Cter Cter Cter Corpororpororpororpororporaaaaate Deposits liquidate Deposits liquidate Deposits liquidate Deposits liquidate Deposits liquidated during the yted during the yted during the yted during the yted during the yearearearearear 124.00124.00124.00124.00124.00 6.006.006.006.006.00ACC Concrete Limited 124.00 6.00

(xv)(xv)(xv)(xv)(xv) InInInInInter Cter Cter Cter Cter Corpororpororpororpororporaaaaate Deposits / Other advte Deposits / Other advte Deposits / Other advte Deposits / Other advte Deposits / Other advances as aances as aances as aances as aances as attttt the end of the y the end of the y the end of the y the end of the y the end of the yearearearearear 68.1368.1368.1368.1368.13 114.00114.00114.00114.00114.00ACC Concrete Limited 68.00 114.00ACC Mineral Resources Limited 0.13 -

(xvi)(xvi)(xvi)(xvi)(xvi) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Assets Assets Assets Assets Assets 4.824.824.824.824.82 13.3013.3013.3013.3013.30ACC Concrete Limited 3.06 13.04ACC Mineral Resources Limited 0.87 -Lucky Minmat Limited 0.77 0.07Others 0.12 0.19

(xvii)(xvii)(xvii)(xvii)(xvii) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Liabilities Liabilities Liabilities Liabilities Liabilities 1.631.631.631.631.63 3.933.933.933.933.93ACC Concrete Limited - 2.96Bulk Cement Corporation (India) Limited 1.63 0.97

(D(D(D(D(D))))) TTTTTrrrrransacansacansacansacansactions with Associations with Associations with Associations with Associations with Associate Cte Cte Cte Cte CompanompanompanompanompanyyyyyAlcAlcAlcAlcAlcon Con Con Con Con Cemenemenemenemenementtttt C C C C Companompanompanompanompany Pvy Pvy Pvy Pvy Pvttttt. L. L. L. L. Ltd.td.td.td.td.


(i) Purchase of Finished/ Unfinished goods 67.85 47.78(ii) Sale of Goods 26.40 19.90(iii) Investment in Associates (Acquisition of Equity Shares) - 22.25(iv) Dividend Received 1.02 1.02(v) Interest Received - 0.01(vi) Reimbursement of Expenses / Cost of Materials / Stores Paid 0.62 0.20

(((((C)C)C)C)C) TTTTTrrrrransacansacansacansacansactions with Subsidiartions with Subsidiartions with Subsidiartions with Subsidiartions with Subsidiary Cy Cy Cy Cy Companies ompanies ompanies ompanies ompanies (contd.)


94

(D(D(D(D(D))))) TTTTTrrrrransacansacansacansacansactions with Associations with Associations with Associations with Associations with Associate Cte Cte Cte Cte Companompanompanompanompany Alcy Alcy Alcy Alcy Alcon Con Con Con Con Cemenemenemenemenementtttt C C C C Companompanompanompanompany Pvy Pvy Pvy Pvy Pvttttt. L. L. L. L. Ltd. td. td. td. td. (contd.)2009 2008

Rs. Crore Rs. Crore

(vii) Reimbursement of Expenses / Cost of Materials / Stores Received 5.61 1.03(viii) Rendering of Services 1.35 -(ix) Receiving of Services 0.86 -(x) Outstanding balance included in Current Assets 4.04 3.93(xi) Outstanding balance included in Current Liabilities 3.34 7.30

(E)(E)(E)(E)(E) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansactions rtions rtions rtions rtions relaelaelaelaelating to Prting to Prting to Prting to Prting to Promoters Gromoters Gromoters Gromoters Gromoters Group Coup Coup Coup Coup Companiesompaniesompaniesompaniesompanies


(i)(i)(i)(i)(i) Dividend paidDividend paidDividend paidDividend paidDividend paid 173.46173.46173.46173.46173.46 167.36167.36167.36167.36167.36Ambuja Cement India Private Limited 172.38 166.28Holderind Investments Limited 1.08 1.08

(ii)(ii)(ii)(ii)(ii) PPPPPurururururchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Coaloaloaloaloal 83.5583.5583.5583.5583.55 71.2271.2271.2271.2271.22Holcim Trading FZCO 83.55 71.22

(iii)(iii)(iii)(iii)(iii) PPPPPurururururchase of Fchase of Fchase of Fchase of Fchase of Finished/ Unfinished goodsinished/ Unfinished goodsinished/ Unfinished goodsinished/ Unfinished goodsinished/ Unfinished goods ----- 0.400.400.400.400.40Ambuja Cements Limited - 0.40

(iv)(iv)(iv)(iv)(iv) PPPPPurururururchase of Storchase of Storchase of Storchase of Storchase of Stores & Spares & Spares & Spares & Spares & Spareseseseses 0.600.600.600.600.60 -----Ambuja Cements Limited 0.60 -

(v)(v)(v)(v)(v) Sale of FSale of FSale of FSale of FSale of Finished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goods 24.7424.7424.7424.7424.74 78.8278.8278.8278.8278.82Ambuja Cements Limited 23.74 78.82Holcim Bangladesh Limited 1.00 -

(vi)(vi)(vi)(vi)(vi) Sale of StorSale of StorSale of StorSale of StorSale of Stores & Spares & Spares & Spares & Spares & Spareseseseses 0.280.280.280.280.28 -----Ambuja Cements Limited 0.28 -

(vii)(vii)(vii)(vii)(vii) RRRRRendering of Serendering of Serendering of Serendering of Serendering of Servicesvicesvicesvicesvices 4.384.384.384.384.38 7.737.737.737.737.73Ambuja Cements Limited 4.38 7.31National Cement Factory - 0.42

(viii)(viii)(viii)(viii)(viii) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses Pxpenses Pxpenses Pxpenses Pxpenses Paid / Paid / Paid / Paid / Paid / Paaaaayyyyyableableableableable 0.900.900.900.900.90 0.700.700.700.700.70Ambuja Cements Limited 0.14 0.02Holcim Trading FZCO 0.46 0.68Holcim Bangladesh Limited 0.30 -

(ix)(ix)(ix)(ix)(ix) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses Rxpenses Rxpenses Rxpenses Rxpenses Receiveceiveceiveceiveceived / Red / Red / Red / Red / Receiveceiveceiveceiveceivableableableableable 3.323.323.323.323.32 17.5917.5917.5917.5917.59Ambuja Cements Limited 3.06 15.78Holcim Ltd - 0.98Others 0.26 0.83

(x)(x)(x)(x)(x) RRRRReceiving of Sereceiving of Sereceiving of Sereceiving of Sereceiving of Services (vices (vices (vices (vices (TTTTTrrrrraining / aining / aining / aining / aining / TTTTTechnical Know how / Markechnical Know how / Markechnical Know how / Markechnical Know how / Markechnical Know how / Marketetetetet sur sur sur sur survvvvveeeeey etcy etcy etcy etcy etc.).).).).) 33.3433.3433.3433.3433.34 47.5747.5747.5747.5747.57Holcim Group Support Limited 11.76 19.97Holcim Services (South Asia) Limited 21.25 27.25Others 0.33 0.35

(xi)(xi)(xi)(xi)(xi) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Assets Assets Assets Assets Assets 1.191.191.191.191.19 4.164.164.164.164.16National Cement Factory - 0.70Ambuja Cements Limited 1.02 3.27Others 0.17 0.19

(xii)(xii)(xii)(xii)(xii) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Liabilities Liabilities Liabilities Liabilities Liabilities 6.166.166.166.166.16 6.336.336.336.336.33Holcim Group Support Limited 5.65 5.48Holcim Trading FZCO 0.69 0.68Others (0.18) 0.17

95

(F)(F)(F)(F)(F) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansaction rtion rtion rtion rtion relaelaelaelaelating to person rting to person rting to person rting to person rting to person refefefefeferrerrerrerrerred to in item (B) aboed to in item (B) aboed to in item (B) aboed to in item (B) aboed to in item (B) abovvvvveeeee


RRRRRemuneremuneremuneremuneremuneraaaaationtiontiontiontion 2.402.402.402.402.40 2.142.142.142.142.14Mr. Sumit Banerjee 2.40 2.14#

* w.e.f. January 1, 2009 the Company has decided to waive the rent charged to ACC Concrete Limited for occupation of officepremises and also not to charge interest on Inter-Corporate Deposits given.

# Excluding Shares worth Rs. 0.07 Crore as a non-monetary perquisite allotted by Holcim Ltd., and the income tax thereon thatwas borne by the Company, amounting to Rs. 0.025 Crore.

6.6.6.6.6. EEEEEarnings per Shararnings per Shararnings per Shararnings per Shararnings per Share - [EPe - [EPe - [EPe - [EPe - [EPS]S]S]S]S]


(I) Net Profit as per Profit and Loss Account ................................................................................................ 1,606.73 1,212.79

(II) Weighted average number of equity shares for Earnings per Share computation

Shares for Basic Earnings per Share ........................................................................................................... 18,76,97,174 18,76,45,744

Add: Potential equity shares on exercise of option of ESOS ........................................................... 4,11,011 2,83,742

Number of Shares for Diluted Earnings per Share .............................................................................. 18,81,08,185 18,79,29,486

(III) Earnings per Share (Weighted Average)

Basic .......................................................................................................................................................... Rupees 85.60 64.63

Diluted ...................................................................................................................................................... Rupees 85.42 64.53

7.7.7.7.7. DirDirDirDirDirececececector’tor’tor’tor’tor’s Rs Rs Rs Rs Remuneremuneremuneremuneremuneraaaaationtiontiontiontion


Managing Director#

Salaries ..................................................................................................................................................................... 0.74 0.70

Perquisites .............................................................................................................................................................. 0.93 0.87

Contributions to Provident and Superannuation Funds ................................................................... 0.20 0.19

Incentive ................................................................................................................................................................. 0.53 0.38

2.40 2.14

Non Executive Directors

Commission ........................................................................................................................................................... 1.34 0.99

Sitting Fees ............................................................................................................................................................. 0.22 0.20

3.96 3.33

# Managerial Remuneration (excluding contribution to gratuity fund, provision for leave encashment on retirement and other definedbenefits since the same is provided on an actuarial basis for the Company as a whole paid / payable to directors and shares worth Rs.0.07 Crore as a non-monetary perquisite allotted by Holcim Ltd. in previous year, and the income-tax thereon that was borne by theCompany, amounting to Rs. 0.025 Crore)

96

Computation of Net Profit under Section 349 of the Companies Act, 1956


Profit before tax and exceptional items as per Profit and Loss Account .................................. 2,294.39 1,687.74

Add -

Provision for depreciation as per Profit and Loss Account ............................................................... 342.09 294.18

Wealth Tax .............................................................................................................................................................. 1.27 0.79

Tax on Yanbu operations .................................................................................................................................. 2.31 1.81

Assets written off as per Profit and Loss Account ............................................................................... 6.01 1.04

Remuneration to Directors ............................................................................................................................. 3.96 3.33

Provision for Doubtful Debts and Advances ........................................................................................... 31.26 0.71

Loss on Sale of Assets (Net) ........................................................................................................................... - 8.91

Compensation under Voluntary Retirement Scheme ......................................................................... 12.50 3.28

2,693.792,693.792,693.792,693.792,693.79 2,001.792,001.792,001.792,001.792,001.79

Less-

Depreciation under Section 350 of the Companies Act, 1956 ....................................................... 342.09 294.18

Profit on Sale of Investments (Net) ............................................................................................................ 0.81 1.12

Assets written off under Section 350 of the Companies Act, 1956. ........................................... 6.01 1.04

Profit on Sale of Assets (Net) ......................................................................................................................... 2.77 -

351.68351.68351.68351.68351.68 296.34296.34296.34296.34296.34

PrPrPrPrProfitofitofitofitofit as per Sec as per Sec as per Sec as per Sec as per Section 349 of the Ction 349 of the Ction 349 of the Ction 349 of the Ction 349 of the Companies Acompanies Acompanies Acompanies Acompanies Act, 1956t, 1956t, 1956t, 1956t, 1956 .............................................................. 2,342.112,342.112,342.112,342.112,342.11 1,705.451,705.451,705.451,705.451,705.45

Maximum remuneration to Managing Director as per Section 198 and 309 of theCompanies Act, 1956 @ 5% ........................................................................................................................... 117.11 85.27

Less: Remuneration paid as per service agreement in case of Managing Director(excluding incentive) ......................................................................................................................................... 1.87 1.76

Balance available for payment of Incentive to Managing Director ............................................. 115.24 83.51

Restricted ................................................................................................................................................................ 0.53 0.38

Maximum permissible commission to Non Executive Directors underSection 198 of the Companies Act, 1956 @ 1% ................................................................................... 23.42 17.05

Restricted ................................................................................................................................................................ 1.34 0.99

8.8.8.8.8. PPPPPaaaaaymenymenymenymenymenttttt to Sta to Sta to Sta to Sta to Statutortutortutortutortutory Ay Ay Ay Ay Auditors uditors uditors uditors uditors (excluding service tax)


As auditorsAs auditorsAs auditorsAs auditorsAs auditors

(i) Audit fees ...................................................................................................................................................... 2.10 2.10

(ii) Audit fees for tax financial statements .......................................................................................... 0.40 0.40

(iii) Expenses Reimbursed .............................................................................................................................. - 0.07

In other maIn other maIn other maIn other maIn other matterstterstterstterstters ................................................................................................................................................ 0.02 0.09

2.522.522.522.522.52 2.662.662.662.662.66

97

9.9.9.9.9. a) During the previous year, the Company subscribed to 9,99,50,000 equity shares for a total consideration of Rs. 99.95 Crore in itswholly owned subsidiary ACC Concrete Limited.

b) During the year, the Company subscribed to 100,000,000 1% Cumulative Redeemable Preference Share for a total considerationof Rs. 100 Crore (Previous year Rs. Nil) in its wholly owned subsidiary ACC Concrete Limited.

c) During the year, the Company subscribed to 4,90,000 equity shares for a total consideration of Rs. 4.90 Crore (Previous year Rs.Nil) in its wholly owned subsidiary ACC Mineral Resources Limited (Formerly Known as The Cement Marketing Co. of India Ltd.).

d) During the year, the Company has acquired 100% stake in National Limestone Company Pvt. Limited, a Company engaged inmining of limestone.

10.10.10.10.10. a) During the year, the Ministry of Coal allocated a coal block in the state of West Bengal to a consortium in which the Company isa member. The Company plans to carry out mining activities through a joint venture Company.

b) During the year, ACC Mineral Resources Ltd, a wholly owned subsidiary of ACC Limited has entered into four Joint Ventureagreements with Madhya Pradesh State Mining Corporation Limited for mining of Coal in the state of Madhya Pradesh andChattisgarh.

11.11.11.11.11. EmploEmploEmploEmploEmployyyyyee Benefitsee Benefitsee Benefitsee Benefitsee Benefits

a) Defined Contribution Plans – Amount recognised and included in Schedule 15 “Contributions / Provision to and for Provident andOther Funds” of Profit and Loss Account Rs. 7.94 Crore (Previous Year Rs. 11.36 Crore).

b) Defined Benefit Plans – As per actuarial valuation on December 31, 2009

Gratuity PostEmploymentMedicalBenefits(PEMB)

Funded Non Funded


IIIII EEEEExpense rxpense rxpense rxpense rxpense recececececognised in the Staognised in the Staognised in the Staognised in the Staognised in the Statementementementementementtttt of Pr of Pr of Pr of Pr of Profitofitofitofitofit & L & L & L & L & Lossossossossossfffffor the yor the yor the yor the yor the year ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Current service cost 6.61 1.83 1.125.04 1.33 0.45

2 Interest Cost 6.06 1.97 0.497.11 1.98 1.31

3 Employee Contributions - - (0.37)- - (0.12)

4 Expected return on plan assets (6.97) - -(6.26) - -

5 Net Actuarial (Gains) / Losses (19.09) (9.19) (4.25)22.43 12.18 3.48

6 Past service cost - - -- - -

7 Settlement / Curtailment (Gain) - - (2.18)- - (11.06)

8 Total expense (13.39) (5.39) (5.19)28.32 15.49 (5.94)

98

IIIIIIIIII NetNetNetNetNet Asset Asset Asset Asset Asset / (Liability) r / (Liability) r / (Liability) r / (Liability) r / (Liability) recececececognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetas aas aas aas aas attttt December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

1 Present value of Defined Benefit Obligation (101.13) (31.60) (3.61)(123.24) (39.00) (10.18)

2 Fair value of plan assets 95.39 - -84.14 - -

3 Funded status {Surplus / (Deficit)} (5.74) - -(39.10) - -

4 Net asset / (liability) (5.74) (31.60) (3.61)(39.10) (39.00) (10.18)

IIIIIIIIIIIIIII Change in obligaChange in obligaChange in obligaChange in obligaChange in obligation during the ytion during the ytion during the ytion during the ytion during the year ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Present value of Defined Benefit Obligation at beginning of the year 123.24 39.00 10.1898.41 26.74 17.40

2 Current Service cost 6.61 1.83 1.125.04 1.33 0.45

3 Interest Cost 6.06 1.97 0.497.11 1.98 1.31

4 Settlement / Curtailment (Gain) - - (2.18)(1.30) - (11.06)



7 Actuarial (Gains) / Losses (18.38) (9.19) (4.25)23.26 12.18 3.48

8 Benefit Payments (16.40) (2.01) (1.38)(9.28) (3.23) (1.28)

9 Present value of Defined Benefit Obligation at the end of the year 101.13 31.60 3.61123.24 39.00 10.18

IVIVIVIVIV Change in assets during the yChange in assets during the yChange in assets during the yChange in assets during the yChange in assets during the year ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Plan assets at the beginning of the year 84.14 - -74.12 - -

2 Settlements - - -(1.30) - -

3 Expected return on plan assets 6.97 - -6.26 - -

4 Contributions by Employer 3.57 - -4.23 - -

5 Actual benefits paid - - -- - -

6 Actuarial Gains / (Losses) 0.71 - -0.83 - -

7 Plan assets at the end of the year 95.39 - -84.14 - -

8 Actual return on plan assets 7.68 - -7.09 - -


Funded Non Funded


99

VVVVV The major caThe major caThe major caThe major caThe major categories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a percencencencencentagetagetagetagetageof total planof total planof total planof total planof total plan

Qualifying Insurance Policy 100%

VIVIVIVIVI EEEEEffffffffffecececececttttt of One per of One per of One per of One per of One percencencencencentage pointage pointage pointage pointage pointtttt change in the change in the change in the change in the change in theassumed Medical Inflaassumed Medical Inflaassumed Medical Inflaassumed Medical Inflaassumed Medical Inflation rtion rtion rtion rtion raaaaatetetetete One perOne perOne perOne perOne percencencencencentage pointage pointage pointage pointage pointtttt One perOne perOne perOne perOne percencencencencentage pointage pointage pointage pointage pointtttt

incrincrincrincrincrease in Medicalease in Medicalease in Medicalease in Medicalease in Medical decrdecrdecrdecrdecrease in Medicalease in Medicalease in Medicalease in Medicalease in MedicalInflaInflaInflaInflaInflation rtion rtion rtion rtion raaaaatetetetete InflaInflaInflaInflaInflation rtion rtion rtion rtion raaaaatetetetete

Increase / (Decrease) on aggregate service and interestcost of Post Employment Medical Benefits 0.32 (0.28)

Increase / (Decrease) on Present value of Defined BenefitObligation as at December 31, 2009 1.06 (0.92)

VIVIVIVIVIIIIII AcAcAcAcActuarial Assumptions:tuarial Assumptions:tuarial Assumptions:tuarial Assumptions:tuarial Assumptions: As aAs aAs aAs aAs attttt December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

1 Discount Rate 7.25% p.a.

2 Expected rate of return on plan assets 8% p.a.

3 Mortality pre-retirement Indian assured lives Mortality (1994-96) (modified) ultimate.

4 Mortality post-retirement Mortality for annuitants LIC (1996-98) ultimate.

5 Employee turnover rate 5% p.a.

6 Medical premium inflation 12% p.a. for 5 years and thereafter 8% p.a.

(Figures in italics pertain to previous year)

c) The Guidance issued by the Accounting Standard Board (ASB) on implementing AS-15, Employee Benefits (revised 2005) statesthat provident funds set up by employers, which requires interest shortfall to be met by the employer, needs to be treated asdefined benefit plan. The Fund does not have any existing deficit or Interest shortfall. In regard to any future obligation arisingdue to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned oninvestment), pending the issuance of the Guidance Note from the Actuarial Society of India, the Company’s actuary has expressedhis inability to reliably measure the same.

d) Basis used to determine expected rate of return on assets:

The expected return on plan assets is based on market expectation, at the beginning of the period, for returns over the entire lifeof the related obligation. The Gratuity Scheme is invested in Life Insurance Corporation (LIC) of India’s Group Gratuity–cum-LifeAssurance cash accumulation policy and HDFC Standard Life’s Group Unit Linked Plan - For Defined Benefit Scheme.

e) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion andother relevant factors, such as supply and demand in the employment market.

f) During the year, Pursuant to amendments in Post Employment Medical Benefits Scheme the Company has recognised curtailmentgain of Rs. 2.18 Crore (previous Year - Rs. 11.06 Crore).

g) Contribution to Provident and Other funds is net of credit in gratuity funded scheme amounting to Rs. 12.64 Crore (Previous Yearcharge of Rs. 16.91 Crore) on account of change in discounting rate in valuation of present value of employee benefit liabilities.

h) Amounts for the current and previous four periods are as follows:

(i) GrGrGrGrGraaaaatuity (Ftuity (Ftuity (Ftuity (Ftuity (Funded)unded)unded)unded)unded) 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005

Defined benefit obligation (101.13) (123.24) (98.41) (86.31) (74.82)

Plan assets 95.39 84.14 74.12 57.30 48.71

Surplus / (deficit) (5.74) (39.10) (24.29) (29.01) (26.11)

Experience adjustments on plan assets (0.71) (0.83) 0.65 N.A. N.A.

Experience adjustments on plan liabilities (5.74) 6.35 9.67 9.03 (6.19)

100

(ii) GrGrGrGrGraaaaatuity (Non funded)tuity (Non funded)tuity (Non funded)tuity (Non funded)tuity (Non funded) 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005Defined benefit obligation (31.60) (39.00) (26.74) (31.07) (28.44)

Plan assets - - - - -

Surplus / (deficit) (31.60) (39.00) (26.74) (31.07) (28.44)

Experience adjustments on plan assets N.A. N.A. N.A. N.A. N.A.

Experience adjustments on plan liabilities (3.83) 4.52 (6.96) (0.31) (0.70)

(iii) PPPPPostostostostost Emplo Emplo Emplo Emplo Employmenymenymenymenymenttttt Medical Benefits Medical Benefits Medical Benefits Medical Benefits Medical Benefits 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005Defined benefit obligation (3.61) (10.18) (17.40) (14.84) (13.37)


Surplus / (deficit) (3.61) (10.18) (17.40) (14.84) (13.37)


Experience adjustments on plan liabilities (2.96) (6.14) 2.33 3.04 (0.44)

12.12.12.12.12. OperOperOperOperOperaaaaating Lting Lting Lting Lting Leaseeaseeaseeaseease

a) Future Lease Rental payments


(i) Not later than one year ................................................................................................................... 19.50 18.77

(ii) Later than one year and not later than five years ............................................................... 52.52 45.36

(iii) Later than five years .......................................................................................................................... - 7.34

b) Lease payment recognised in the Profit and Loss Account Rs. 23.20 Crore (Previous Year – Rs. 23.12 Crore)

c) General description of the leasing arrangement

(i) Leased Assets: Grinding facility, Dumpers, Cranes and Tippers, Car, Locomotives, Computers and other related equipments.

(ii) Future lease rentals are determined on the basis of agreed terms.

(iii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice inwriting.

13.13.13.13.13. MoMoMoMoMovvvvvemenemenemenemenementtttt of pr of pr of pr of pr of prooooovision during the yvision during the yvision during the yvision during the yvision during the year as rear as rear as rear as rear as requirequirequirequirequired by Acced by Acced by Acced by Acced by Accounounounounounting Standarting Standarting Standarting Standarting Standard 29d 29d 29d 29d 29

Mines Restoration Expenditure


Opening provision ............................................................................................................................................... 6.986.986.986.986.98 6.206.206.206.206.20

Add: Provision during the year ..................................................................................................................... 3.72 1.41

Less: Utilisation during the year .................................................................................................................. (0.72) (0.63)

Closing provision ................................................................................................................................................. 9.989.989.989.989.98 6.986.986.986.986.98

14.14.14.14.14. a) Provision for current tax represents estimated tax charge based on the aggregate profits of the Company for the quarter endedMarch 31, 2009, and nine months ended December 31, 2009. Ultimately, the tax liability of the Company would be determinedon the basis of its results for the fiscal year ending March 31, 2010.

b) The Company has been recognising in the financial statements the deferred tax assets / liabilities, in accordance with AccountingStandard 22 “Accounting for Taxes on Income” issued by the Institute of Chartered Accountants of India. During the year, theCompany has charged the Profit and Loss Account with Deferred Tax Liability of Rs. 13.46 Crore (Previous Year - Rs. 4.34 Crore).

101

The position of Deferred Tax Assets and Liabilities is as follows:


DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Liabilitiesax Liabilitiesax Liabilitiesax Liabilitiesax Liabilities

Depreciation differences ................................................................................................................ 498.39 468.03

498.39 468.03

DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Assetsax Assetsax Assetsax Assetsax Assets

Employee Benefit ............................................................................................................................... 44.65 53.96

Effect of expenditure debited to Profit and Loss Account in current yearbut allowed for tax purposes in the following years ........................................................ 71.16 53.09

Others ..................................................................................................................................................... 33.33 25.19

149.14 132.24

NetNetNetNetNet Def Def Def Def Deferrerrerrerrerred ed ed ed ed TTTTTax Liabilitiesax Liabilitiesax Liabilitiesax Liabilitiesax Liabilities ....................................................................................................... (349.25)(349.25)(349.25)(349.25)(349.25) (335.79)(335.79)(335.79)(335.79)(335.79)

15.15.15.15.15. A)A)A)A)A) CCCCCononononontingentingentingentingentingenttttt Liabilities Not Liabilities Not Liabilities Not Liabilities Not Liabilities Not Pr Pr Pr Pr Prooooovided Fvided Fvided Fvided Fvided Fororororor

a) Guarantee given on behalf of subsidiary companies to the extent of Rs. 0.15 Crore (Previous Year – Rs. 0.07 Crore).

b) Indemnity, Guarantee/s given to Banks / Financial Institutions, Government Bodies and others Rs. 139 Crore (Previous Year –Rs. 142 Crore).

c) Sales Tax, Excise Duties & Other Dues Rs. 46.96 Crore (Previous Year – Rs. 58.07 Crore).

In respect of item (c) future cash outflows in respect of contingent liabilities are determinable only on receipt of judgmentspending at various forums / authorities.

d) The Company had filed petitions against the orders / notices of various authorities demanding Rs. 132.96 Crore (PreviousYear – Rs. 113.80 Crore) towards payment of additional Royalty on Limestone based on the ratio of 1.6 tonnes of Limestoneto 1 tonne of Cement produced at its factories in Madhya Pradesh and Chattisgarh and on cement produced vis a visconsumption of limestone at its factory in Tamil Nadu. In a similar matter, the Company has received a demand noticeamounting to Rs. 40.18 Crore (Previous Year– Rs. Nil) for one of its plant in the state of Karnataka.

The Company holds the view that the payment of royalty on limestone is based on the actual quantity of limestoneextracted from the mining area. The independent report obtained from the National Council of Building Materials supportsthe Company’s view. In view of the demand, being legally unsustainable, the Company does not expect any liability in thematter.

B)B)B)B)B) a) The Company was entitled to receive transport subsidy against actual expenditure on freight incurred in respect of its new1 MTPA plant at Gagal, which went into commercial production w.e.f. September 15, 1994 for a period of five years. Accordingly,the Company accrued the subsidy claim (including subsidy on clinker) aggregating Rs. 80.65 Crore (Previous Year – Rs. 80.65Crore) for a year up to September 1999. As against this, the Company had received part disbursement and balance of Rs.46.35 Crore (Previous Year – Rs. 46.35 Crore) is shown as receivable under “Sundry Debtors – Schedule 8”. The Company hadreceived a demand notice from the Government of Himachal Pradesh asking for refund of Rs. 31.19 Crore during the earlieryear stating that 1 MTPA plant at Gagal is not a new unit but a case of expansion of an existing unit, thereby, not eligible forsubsidy under Transport Subsidy Scheme, 1971.

The High Court of Shimla had declared Gagal II as eligible for Transport Subsidy in its judgement dated August 19, 2003 andthe division bench of Himachal Pradesh High Court has also confirmed the same in its judgement dated April 10, 2008.However, the Government has filed an appeal in the Supreme Court.

b) The Company had availed Sales tax incentive with respect to its investment in Gagal II under the State Industrial Policy,1991. The Company accrued Sales tax incentives aggregating to Rs. 56 Crore (Previous year – Rs. 56 Crore). However, the Salestax authorities of the State, interalia, have stipulated that the incentive is admissible only for the incremental amount overthe base revenue. The Company is still pursuing the claim with the Government. The Company is hopeful of recovery of theamount paid under protest. The Company is also pursuing with its appeal filed before Appellate Authorities. However, as ameasure of abundant caution, a sum of Rs. 56 Crore (Previous Year - Rs. 56 Crore) has been provided by the Company inearlier years.

102

c) Pursuant to incentives available under a State Government Policy in respect of one of its cement plants, the Company had inthe past accrued Rs. 15 Crore of capital subsidy and Rs. 29.44 Crore as Sales Tax which is receivable from the concernedGovernment Authorities. However, despite Company’s efforts, it has not realised any amounts to date. Considering thesefacts, management considers it prudent to record a provision for the amount of Rs. 29.44 Crore by charge to the Profit andLoss Account and the Capital Reserve Account is adjusted to the extent of the capital subsidy.

16.16.16.16.16. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 660.45 Crore(Previous Year – Rs. 1,554.69 Crore).

17.17.17.17.17. Previous year other expenses of Schedule 15 include Donations paid of Rs. 1.00 Crore to Bhartiya Janata Party and Rs. 1.00 Crore to AllIndia Congress Committee.

18.18.18.18.18. There are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, towhom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures havebeen made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have beenidentified on the basis of information available with the Company. This has been relied upon by the auditors.

19.19.19.19.19. a) PPPPParararararticulars of unhedged fticulars of unhedged fticulars of unhedged fticulars of unhedged fticulars of unhedged forororororeign curreign curreign curreign curreign currency eency eency eency eency exposurxposurxposurxposurxposure as ae as ae as ae as ae as attttt Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet da da da da datetetetete

Particulars Amount

Export Debtors Rs. Nil {Previous Year Rs. 3.32 Crore (USD 0.07 Crore @ Closing rate of 1 USD = Rs. 49.72)}

Rs. 3.73 Crore (SR 0.30 Crore @ Closing rate of 1 SR = Rs. 12.50){Previous Year Rs. 1.92 Crore (SR 0.14 Crore @ Closing rate of 1 SR = Rs. 13.25)}

Creditors Rs. 0.84 Crore (USD 0.02 Crore @ Closing rate of 1 USD = Rs. 46.76){Previous Year Rs. 21.92 Crore (USD 0.44 Crore @ Closing rate of 1 USD = Rs. 49.72)}

Rs. 6.55 Crore (CHF 0.15 Crore @ Closing rate of 1 CHF = Rs. 45.05){Previous Year Rs. 7.00 Crore (CHF 0.15 Crore @ Closing rate of 1 CHF = Rs. 47.10)}

Rs. Nil {Previous Year Rs. 1.41 Crore (JPY 2.56 Crore @ Closing rate of 1 JPY = Rs. 0.55)}

Rs. 2.83 Crore (EUR 0.04 Crore @ Closing rate of 1 EUR = Rs. 67.02){Previous Year Rs. 34.29 Crore (EUR 0.49 Crore @ Closing rate of 1 EUR = Rs. 70.09)}

Rs. Nil {Previous Year Rs.0.02 Crore (THB 0.01 Crore @ Closing rate of 1 THB = Rs. 1.45)}

b) The details of fThe details of fThe details of fThe details of fThe details of forororororwwwwwararararard cd cd cd cd cononononontrtrtrtrtracacacacacts outstanding ats outstanding ats outstanding ats outstanding ats outstanding attttt the y the y the y the y the year end arear end arear end arear end arear end are as fe as fe as fe as fe as followollowollowollowollowsssss

Currency Number of Contracts Buy Amount Purpose

EUEUEUEUEURRRRROOOOO Import of Capital items

2009 1 88,42,500

2008 5 1,18,62,699

USDUSDUSDUSDUSD Import of Capital items

2009 2 66,00,000

2008 2 50,00,000

20.20.20.20.20. LLLLLoans and Advoans and Advoans and Advoans and Advoans and Advancesancesancesancesances, in the na, in the na, in the na, in the na, in the naturturturturture of loans –e of loans –e of loans –e of loans –e of loans –

To Subsidiary –

Particulars 2009 2008 Maximum Balance during the year

Inter Corporate Deposits: Rs. Crore Rs. Crore Rs. Crore

ACC Concrete Limited 68.00 114.00 164.00

ACC Mineral Resources Limited 0.13 - 0.13

103

21.21.21.21.21. Sales include Sales Tax incentive of Rs. 60.51 Crore (Previous Year - Rs. 156.90 Crore)

22.22.22.22.22. Deferred Payment Liability included in “Unsecured Loans – Schedule 4” comprises of Rs. 9.74 Crore (Previous Year – Rs. 11.36 Crore)payable to the Industrial Development Corporation of Orissa Limited (IDCOL) on account of their dues payable by the erstwhile BargarhCement Ltd in eight equal annual installments without interest or penalty. The third installment was due for payment on December22, 2009. Pending conclusion of negotiation with IDCOL the installment is yet to be paid.

23.23.23.23.23. Details of Other OperDetails of Other OperDetails of Other OperDetails of Other OperDetails of Other Operaaaaating Incting Incting Incting Incting Income arome arome arome arome are as fe as fe as fe as fe as followollowollowollowollowsssss

Description 2009 2008Rs. Crore Rs. Crore

Sale of Stores, Materials, etc. ...................................................................................................................... 20.04 26.92

Provision no longer required written back ........................................................................................... 21.54 35.41

Sale of Surplus generated Power .............................................................................................................. 58.89 13.67

Miscellaneous Income ................................................................................................................................... 63.23 89.53

TOTAL ... 163.70163.70163.70163.70163.70 165.53165.53165.53165.53165.53

24.24.24.24.24. ADDITADDITADDITADDITADDITIONAL IIONAL IIONAL IIONAL IIONAL INNNNNFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO O O O O TTTTTHHHHHE PRE PRE PRE PRE PROOOOOVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PARARARARARAAAAAGRGRGRGRGRAPHS 3 & 4 OF PAPHS 3 & 4 OF PAPHS 3 & 4 OF PAPHS 3 & 4 OF PAPHS 3 & 4 OF PARARARARART IT IT IT IT II OF SCI OF SCI OF SCI OF SCI OF SCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHE CE CE CE CE COOOOOMPMPMPMPMPANANANANANIIIIIESESESESESAAAAACTCTCTCTCT, 1956 :-, 1956 :-, 1956 :-, 1956 :-, 1956 :-

(A) Sales by class of goods (Net)

Unit 2009 2008

Quantity Rs. Crore Quantity Rs. Crore

(i) Cement .................................................................................. Lakh Tonnes 212.73 7,828.73 207.02 7,023.10

(ii) Clinker ................................................................................... ” 2.02 51.47 3.99 98.27

(iii) Consultancy services ...................................................... - - 46.49 - 63.70

(iv) Erection, Fabrication & Contracts ............................. - - 1.75 - 2.34

(v) Purchased Cement ........................................................... Lakh Tonnes 2.43 98.76 2.31 95.46

8,027.20 7,282.87

(B) Details of raw materials consumed

Unit 2009 2008


(i) Slag ......................................................................................... Lakh Tonnes 19.30 96.01 19.77 82.78

(ii) Gypsum ................................................................................. ” 11.14 244.29 11.30 223.51

(iii) Fly Ash ................................................................................... ” 44.56 135.68 39.86 129.51

(iv) Others .................................................................................... - 415.53 - 363.32

891.51 799.12

(C) Licensed and installed capacity, actual production and opening and closing stocks

* Installed / Rated Actual ProductionCapacity

Unit As at As atDecember 31, December 31,

2009 2008 2009 2008

Cement ............................................................................................ Lakh Tonnes 261.69 226.29 213.69 208.36

Licensed Capacity per annum not indicated due to the abolition of Industrial Licences as per Notification No. 477 (E) dated July 25, 1991issued under The Industries (Development and Regulation) Act, 1951.

* As Certified by the Management and accepted by the Auditors.

104

Opening stock as at Closing stock as atJanuary 1, 2009 December 31, 2009

Unit Quantity Rs. Crore Quantity Rs. Crore

(i) Cement .................................................................................. Tonnes 3,40,549 78.44 3,48,477 88.04(ii) Purchased Cement ........................................................... ” 1,381 0.42 115 0.04

78.86 88.08

(D) Purchase of Cement

Unit 2009 2008


Cement ............................................................................................ Lakh Tonnes 2.42 93.16 2.29 87.36

(E) Value of imports calculated on C.I.F. basis


(i) Raw Material ..................................................................................................................................... 68.25 47.20(ii) Components and Spare Parts .................................................................................................... 85.47 44.29(iii) Coal ........................................................................................................................................................ 89.02 152.92(iv) Capital Goods .................................................................................................................................... 185.55 125.88(v) Finished Goods ................................................................................................................................. - 7.62

428.29 377.91

(F) Expenditure in foreign currencies (on accrual basis)


(i) Expenses on foreign contracts .................................................................................................. 26.94 34.30(ii) Technical Know-how paid (net of taxes) .............................................................................. 5.67 2.15(iii) Consultants’ Fees (net of recoveries) ...................................................................................... 2.77 6.07(iv) Training, Seminar Expenses ........................................................................................................ 4.06 15.86(v) Others ................................................................................................................................................... 2.73 2.85

42.17 61.23

(G) Value of imported and indigenous raw materials, components and spare parts consumed

(a) Raw Materials 2009 2008

Rs. Crore % Rs. Crore %

Imported ............................................................................... 140.23 15.73 78.61 9.84Indigenous ........................................................................... 751.28 84.27 720.51 90.16

891.51 100.00 799.12 100.00

(b) Components and Spare Parts 2009 2008

Rs. Crore % Rs. Crore %

Imported ............................................................................... 40.40 15.15 11.64 4.69

Indigenous ........................................................................... 226.29 84.85 236.51 95.31

266.69 100.00 248.15 100.00

105

(H) Earnings in foreign exchange (on accrual basis)

2009 2008

Rs. Crore Rs. Crore

Earnings on contract services .............................................................................................................. 55.36 70.70

Export of goods F.O.B. basis .................................................................................................................. - 0.18

Gain on Exchange ..................................................................................................................................... 0.25 0.82

55.61 71.70

(I) Remittances in foreign currencies

2009 2008

On account of dividend to non-resident shareholders

(a) Final Dividend

No. of shareholders ........................................................................................................................ 2 2

No. of Equity Shares ....................................................................................................................... 18,64,371 19,08,634

Amount remitted (Rs. Crore) ...................................................................................................... 1.86 1.91

Year to which it pertains ............................................................................................................. 2008 2007

(b) Interim Dividend 2009 2008

No. of shareholders ........................................................................................................................ 1 2

No. of Equity Shares ....................................................................................................................... 5,41,000 19,03,385

Amount remitted (Rs. Crore) ...................................................................................................... 0.54 1.90

Year to which it pertains ............................................................................................................. 2009 2008

25 Previous year’s figures have been regrouped / restated wherever necessary to make them comparable with current year’s figures.



M. L. NARULAper SUDHIR SONI SUMIT BANERJEE SUNIL K. NAYAK R. A. SHAH DirectorsPartner Managing Director Chief Financial Officer D. K. MEHROTRAMembership No. 41870 SHAILESH HARIBHAKTI



}

106

Balance SheetBalance SheetBalance SheetBalance SheetBalance Sheet Abstr Abstr Abstr Abstr Abstracacacacacttttt and C and C and C and C and Companompanompanompanompany’y’y’y’y’s Geners Geners Geners Geners General Business Pral Business Pral Business Pral Business Pral Business Profileofileofileofileofile

I.I.I.I.I. RRRRRegistregistregistregistregistraaaaation Detailstion Detailstion Detailstion Detailstion DetailsRegistration No. L26940MH1936PLC002515 State Code No. 1 1

Balance Sheet Date 3 1 1 2 2 0 0 9

Date Month Year

IIIIII.I.I.I.I. CCCCCapital rapital rapital rapital rapital raised during the yaised during the yaised during the yaised during the yaised during the year (Amounear (Amounear (Amounear (Amounear (Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))Public Issue Rights Issue

N I L N I L

Bonus Issue Private PlacementN I L N I L

ESOS5 8 5

IIIIIIIIIII.I.I.I.I. PPPPPosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisation and tion and tion and tion and tion and DDDDDeploeploeploeploeploymenymenymenymenymenttttt of F of F of F of F of Funds (Amoununds (Amoununds (Amoununds (Amoununds (Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))Total Liabilities Total Assets1 0 0 8 4 6 1 0 0 1 0 0 8 4 6 1 0 0

SourSourSourSourSources of Fces of Fces of Fces of Fces of FundsundsundsundsundsPaid-up Capital Share Application Money

1 8 7 9 4 2 3 7 5 3

Reserves & Surplus Secured Loans5 8 2 8 2 0 0 0 5 5 0 0 0 0 0

Unsecured Loans Deferred Tax Liabilities1 6 9 2 4 0 3 4 9 2 5 0 3

ApplicaApplicaApplicaApplicaApplication of Ftion of Ftion of Ftion of Ftion of FundsundsundsundsundsNet Fixed Assets Investments

6 3 1 4 4 9 8 7 1 4 7 5 6 4 3 2

Net Current Assets Misc. Expenditure( 8 5 7 7 5 0 0 ) N I L

Accumulated LossesN I L

IVIVIVIVIV..... PPPPPerererererffffformance of Cormance of Cormance of Cormance of Cormance of Companompanompanompanompany (Amouny (Amouny (Amouny (Amouny (Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))Revenue Expenditure

8 2 6 8 3 0 9 3 5 9 7 3 9 1 9 7

Profit / (Loss) before Tax Profit / (Loss) after Tax+ 2 2 9 4 3 8 9 6 + 1 6 0 6 7 2 9 6

Earning per share (in Rs.) Dividend rate %

8 5 . 6 0 2 3 0

VVVVV..... Generic Name of Principal PrGeneric Name of Principal PrGeneric Name of Principal PrGeneric Name of Principal PrGeneric Name of Principal Producoducoducoducoducttttt of the C of the C of the C of the C of the Companompanompanompanompany (y (y (y (y (AAAAAs s s s s PPPPPer er er er er MMMMMonetaronetaronetaronetaronetary y y y y TTTTTermsermsermsermserms)))))Item Code No. (ITC Code)

2 5 2 3 0 0 C E M E N T

ADDITIONAL INFORMATION PURSUANT TO PART IV OFSCHEDULE VI TO THE COMPANIES ACT, 1956.

107

SSSSSTTTTTAAAAATTTTTEMENT REMENT REMENT REMENT REMENT REGEGEGEGEGARARARARARDIDIDIDIDING SUNG SUNG SUNG SUNG SUBSIBSIBSIBSIBSIDIARDIARDIARDIARDIARY CY CY CY CY COOOOOMPMPMPMPMPANANANANANIIIIIESESESESESPUPUPUPUPURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO SECTO SECTO SECTO SECTO SECTION 212 OF ION 212 OF ION 212 OF ION 212 OF ION 212 OF TTTTTHHHHHE CE CE CE CE COOOOOMPMPMPMPMPANANANANANIIIIIES AES AES AES AES ACTCTCTCTCT, 1956, 1956, 1956, 1956, 1956

ACC Mineral Bulk Cement Lucky Minmat ACC Concrete National LimestoneResources Limited Corporation (India) Limited Limited Co. Pvt. Limited*

Limited

(A) The “Financial Year” of theSubsidiary Companies December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

(B) Shares of the Subsidiary heldby ACC Limited on theabove dates :

(a) Number and face value 4,95,000 Shares of 3,18,42,050 Shares of 3,25,000 Shares of 10,00,00,000 Equity 8,650 Shares ofRs. 100/- each fully Rs. 10/- each fully Rs. 100/- each fully Shares of Rs. 10/- Rs. 100/- each fullypaid up paid up paid up each fully paid up paid up

and 10,00,00,0001% CumulativeRedeemablePreference Sharesof Rs. 10/- eachfully paid up

(b) Extent of holding 100% 94.65% 100% 100% 100%

(C) The net aggregate of Profits /(Losses) of the SubsidiaryCompanies so far as it concernsthe members of theACC Limited -

(a) Not dealt with in theaccounts of ACC Limited forthe year endedDecember 31, 2009amounted to -

(i) for the Subsidiariesfinancial year ended asin (A) above (Rs. Lakhs) 1.61 (107.58) (15.65) (4,690.12) (5.99)

(ii) for the previousfinancial years of theSubsidiaries since theybecame the HoldingCompany’s subsidiaries(Rs. Lakhs) 4.10 802.31 (21.27) (9,681.23) -

(b) Dealt with in the accountsof ACC Limited for the yearended December 31, 2009amounted to –

(i) for the Subsidiariesfinancial year ended asin (A) above - - - - -

(ii) for the previousfinancial years of theSubsidiaries since theybecame the HoldingCompany’s subsidiaries - - - - -

*National Limestone Co. Pvt. Limited became a subsidiary of the Company on April 20, 2009

For and on behalf of the Board of ACC Limited,

N. S. SEKHSARIA PAUL HUGENTOBLER S. M. PALIAChairman Deputy Chairman NARESH CHANDRA

M. L. NARULASUMIT BANERJEE SUNIL K. NAYAK D. K. MEHROTRA DirectorsManaging Director Chief Financial Officer R. A. SHAH

SHAILESH HARIBHAKTIBURJOR D. NARIMAN KULDIP KAURACompany Secretary


}

108

CONSOLICONSOLICONSOLICONSOLICONSOLIDDDDDAAAAATTTTTED GRED GRED GRED GRED GROUOUOUOUOUP OPERP OPERP OPERP OPERP OPERAAAAATTTTTIIIIING RESUNG RESUNG RESUNG RESUNG RESULLLLLTTTTTS FOR S FOR S FOR S FOR S FOR TTTTTHHHHHE E E E E YYYYYEEEEEAR ENAR ENAR ENAR ENAR ENDED DECDED DECDED DECDED DECDED DECEMBEMBEMBEMBEMBERERERERER 31, 2009 31, 2009 31, 2009 31, 2009 31, 2009

2009 2008Rs. Crore Rs. Crore Rs. Crore

ACC’s Net Profit 1,606.73 1,212.79

Add: Pro-rate share of profits / losses of Subsidiaries -

ACC Machinery Co. Limited ................................................................................................... - 2.10

Bulk Cement Corporation (India) Limited ....................................................................... (1.08) (0.53)

ACC Concrete Limited .............................................................................................................. (46.90) (96.80)

ACC Mineral Resources Limited ........................................................................................... 0.02 0.03

Lucky Minmat Limited ............................................................................................................ (0.16) (0.22)

National Limestone Co. Pvt. Limited ................................................................................. (0.06) -

(48.17) (95.42)

Add: Pro-rata share of profit of Associate ................................................................................. 3.16 2.39

Add: Loss on sale of Ready Mixed Concrete Business .......................................................... - 0.24

Less: Minority interest of Subsidiary (BCCI) .............................................................................. (0.06) (0.03)

Less: Profit on sale of Subsidiary Company .............................................................................. - 6.60

Less: Amortisation of Goodwill on acquisition of Subsidiary andInvestment in Associate ......................................................................................................... 6.53 4.95

Less: Unrealised profit on purchase of Fixed Assets ............................................................. (9.68) 0.21

Less: Dividend received from Subsidiary / Associate ............................................................ 1.02 8.62

ACC Group’s Net Profit ......................................................................................................................... 1,563.91 1,099.65

CONSOLICONSOLICONSOLICONSOLICONSOLIDDDDDAAAAATTTTTED GRED GRED GRED GRED GROUOUOUOUOUP NET P NET P NET P NET P NET WORWORWORWORWORTTTTTH AS AT DECH AS AT DECH AS AT DECH AS AT DECH AS AT DECEMBEMBEMBEMBEMBER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009

2009 2008Rs. Crore Rs. Crore Rs. Crore

ACC’s Net Worth 6,016.22 4,927.73

Add: Net Worth as per Balance Sheet of Subsidiary Companies -

Bulk Cement Corporation (India) Limited ....................................................................... 43.57 44.65

ACC Concrete Limited .............................................................................................................. 55.68 2.30

ACC Mineral Resources Limited ........................................................................................... 4.88 0.09

Lucky Minmat Limited ............................................................................................................ 2.72 2.88

National Limestone Co. Pvt. Limited ................................................................................. 0.07 -

106.92 49.92

Less: Pro-rata share of Minority Shareholders interest in the Net Worth ofSubsidiary Companies ............................................................................................................. 2.40 2.45

Less: ACC’s share in pre-acquisition Net Worth of Subsidiary Companies .................. 242.60 137.59

(138.08) (90.12)

Less: Amortisation of Goodwill in Subsidiary Companies .................................................. 9.81 4.90

Less: Unrealised profit on purchase of Fixed Assets ............................................................. - 9.68

Add: Increase in Net Worth of Alcon Cement Company Pvt. Ltd .................................... 0.68 0.16

Less: Other adjustments (Net) ........................................................................................................ 0.03 0.07

ACC Group’s Net Worth ........................................................................................................................ 5,868.97 4,823.12

CONSOLIDATED GROUP OPERATING RESULTSAND NET WORTH - EXPLANATORY STATEMENT

109

AUDITOR’S REPORT TO THE BOARD OF DIRECTORS ON THECONSOLIDATED FINANCIAL STATEMENTS OF ACC LIMITED

1. We have audited the attached Consolidated Balance Sheet of ACC Limited and its subsidiaries (the ACC Group), as at December 31,2009 and also the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement for the year ended on that dateannexed thereto. These financial statements are the responsibility of the ACC Limited’s management and have been prepared by themanagement on the basis of separate financial statements and other financial information regarding components. Our responsibilityis 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. Those Standards require that we planand perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Anaudit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit alsoincludes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overallfinancial statement presentation. 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 (net) of Rs. 181.41 Crore as atDecember 31, 2009, the total revenue of Rs. 529.11 Crore and cash flows (net) amounting to Rs. 0.77 Crore and of an associate whichreflect the Group’s share of profit of Rs. 3.16 Crore, for the year then ended. These financial statements and other financial informationhave been audited by other auditors whose reports have been furnished to us, and our opinion is based solely on the report of otherauditors.

4. We report that the Consolidated Financial Statements have been prepared by the ACC Limited’s management in accordance with therequirements of Accounting Standards (AS) 21, Consolidated Financial Statements and Accounting Standards (AS) 23, Accounting forInvestments in Associates in Consolidated Financial Statements notified pursuant to the Companies (Accounting Standards) Rules,2006 (as amended).

5. Based on our audit and on consideration of reports of other auditors on separate financial statements and on the other financialinformation of the components, and to the best of our information and according to the explanations given to us, we are of theopinion that the attached Consolidated Financial Statements give a true and fair view in conformity with the accounting principlesgenerally accepted in India:

(a) in the case of the Consolidated Balance Sheet, of the state of affairs of the ACC Group as at December 31, 2009;

(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.

For S.R. BATLIBOI & ASSOCIATESChartered Accountants



110

CONSOLIDATED BALANCE SHEETAS AT DECEMBER 31, 2009


SOUSOUSOUSOUSOURRRRRCCCCCES OF FES OF FES OF FES OF FES OF FUUUUUNNNNNDS:DS:DS:DS:DS:

SharSharSharSharShareholders’eholders’eholders’eholders’eholders’ F F F F Funds:unds:unds:unds:unds:Share Capital ...................................................................................................................... 1 187.94 187.88Share Application Money, pending allotment ..................................................... 0.08 -Reserves and Surplus ...................................................................................................... 2 5,681.92 4,636.37

5,869.94 4,824.25

Minority Interest .............................................................................................................. 2.40 2.45

LLLLLoan Foan Foan Foan Foan Funds:unds:unds:unds:unds:Secured Loans .................................................................................................................... 3 550.00 450.00Unsecured Loans .............................................................................................................. 4 16.92 32.03

566.92 482.03DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net)ax Liabilities (Net) ................................................................................... 354.63 342.08{Refer Note -12(b)}


APPLICAPPLICAPPLICAPPLICAPPLICAAAAATTTTTION OF FION OF FION OF FION OF FION OF FUUUUUNNNNNDS:DS:DS:DS:DS:FFFFFixixixixixed Assets:ed Assets:ed Assets:ed Assets:ed Assets: 5Gross Block ......................................................................................................................... 7,165.02 6,113.99Less: Accumulated Depreciation and Amortisation .......................................... 2,786.59 2,453.60

Net Block ............................................................................................................................. 4,378.43 3,660.39Capital Work-in-Progress (including Capital Advances) ................................... 2,157.47 1,611.40

6,535.90 5,271.79

InInInInInvvvvvestmenestmenestmenestmenestmentststststs ...................................................................................................................... 6 1,192.11 516.88

CurrCurrCurrCurrCurrenenenenenttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans and Advoans and Advoans and Advoans and Advoans and Advances:ances:ances:ances:ances:Inventories .......................................................................................................................... 7 786.09 799.34Sundry Debtors ................................................................................................................. 8 273.92 357.85Cash and Bank Balances ............................................................................................... 9 754.42 991.48Other Current Assets ...................................................................................................... 10 12.30 21.99Loans and Advances ....................................................................................................... 11 503.44 556.54

2,330.17 2,727.20

LLLLLess : Curress : Curress : Curress : Curress : Currenenenenenttttt Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Prooooovisions:visions:visions:visions:visions:

Current Liabilities ............................................................................................................. 12 2,172.38 1,900.68Provisions ............................................................................................................................ 13 1,092.88 965.51

3,265.26 2,866.19

NetNetNetNetNet Curr Curr Curr Curr Currenenenenenttttt Assets Assets Assets Assets Assets ........................................................................................................ (935.09) (138.99)

Miscellaneous EMiscellaneous EMiscellaneous EMiscellaneous EMiscellaneous Expenditurxpenditurxpenditurxpenditurxpenditureeeee ...................................................................................... 14 0.97 1.13(To the extent not written off or adjusted)


Notes to AccNotes to AccNotes to AccNotes to AccNotes to Accounounounounountststststs ......................................................................................................... 19

The schedules referred to above and notes to accounts form an integral part of the Consolidated Balance Sheet.As per our report of even date For and on behalf of the Board of ACC Limited,





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111

CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THEYEAR ENDED DECEMBER 31, 2009


IIIIINCNCNCNCNCOOOOOME:ME:ME:ME:ME:Sale of Products and Services (Gross) .................................................................... 9,171.96 8,633.66Less - Excise Duty ............................................................................................................ 692.41 939.72

Sale of Products and Services (Net) (Refer Note - 16) .................................... 8,479.55 7,693.94

Other Income .................................................................................................................... 15 242.70 277.95Share of Earnings of Associate .................................................................................. 3.16 2.39

8,725.418,725.418,725.418,725.418,725.41 7,974.287,974.287,974.287,974.287,974.28EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE:E:E:E:E:Manufacturing and Other Expenses ...................................................................... 16 6,017.28 6,031.53Depreciation and Amortisation ................................................................................ 5 373.13 320.53Interest ................................................................................................................................. 17 84.36 39.98

6,474.77 6,392.04

2,250.64 1,582.24Minority Interest .............................................................................................................. 0.06 0.03

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxaxaaaaation and Etion and Etion and Etion and Etion and Exxxxxceptional itemsceptional itemsceptional itemsceptional itemsceptional items .............................................. 2,250.702,250.702,250.702,250.702,250.70 1,582.271,582.271,582.271,582.271,582.27Exceptional Items ............................................................................................................ 18 - 42.55

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxax ............................................................................................................ 2,250.702,250.702,250.702,250.702,250.70 1,624.821,624.821,624.821,624.821,624.82

PrPrPrPrProoooovision fvision fvision fvision fvision for or or or or TTTTTaxaxaxaxaxCurrent Tax ......................................................................................................................... (673.32) (511.68)Deferred Tax {Refer Note -12(b)} .............................................................................. (12.55) (3.71)Fringe Benefit Tax ........................................................................................................... (0.92) (9.78)

(686.79) (525.17)

PrPrPrPrProfitofitofitofitofit af af af af after ter ter ter ter TTTTTaxaxaxaxax ................................................................................................................ 1,563.911,563.911,563.911,563.911,563.91 1,099.651,099.651,099.651,099.651,099.65Balance brought forward from Previous Year .................................................... 2,357.25 2,057.37

PrPrPrPrProfitofitofitofitofit a a a a avvvvvailable failable failable failable failable for appror appror appror appror appropriaopriaopriaopriaopriationtiontiontiontion ........................................................................ 3,921.163,921.163,921.163,921.163,921.16 3,157.023,157.023,157.023,157.023,157.02ApprApprApprApprAppropriaopriaopriaopriaopriations:tions:tions:tions:tions:Interim Dividend .............................................................................................................. 187.70 187.65Proposed Dividend .......................................................................................................... 244.06 187.68Dividend Distribution Tax ............................................................................................ 73.38 63.79General Reserve ............................................................................................................... 350.00 350.00Debenture Redemption Reserve ............................................................................... 25.00 10.00Previous Year Dividend ................................................................................................. - 0.02Amortisation Reserve .................................................................................................... 0.65 0.63

880.79 799.77

Balance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance Sheet ........................................................................ 3,040.373,040.373,040.373,040.373,040.37 2,357.252,357.252,357.252,357.252,357.25

Earnings per Share (Refer Note - 6)Basic Earnings per Share .............................................................................................. Rupees 83.32 58.60Diluted Earnings per Share ......................................................................................... Rupees 83.14 58.51Face value per Share ...................................................................................................... Rupees 10.00 10.00Notes to Accounts ........................................................................................................... 19

The schedules referred to above and notes to accounts form an integral part of the Consolidated Profit and Loss Account.As per our report of even date For and on behalf of the Board of ACC Limited,





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112

CONSOLIDATED CASH FLOW STATEMENT FOR THEYEAR ENDED DECEMBER 31, 2009

2009 2008

Rs. Crore Rs. Crore

A. Cash flow from operating activities1 Net Profit before Tax and Exceptional Items ..................................................................................... 2,250.70 1,582.27Adjustments for:2 Depreciation ..................................................................................................................................................... 373.13 320.533 (Profit) / Loss on sale / Discarding of Fixed Assets - (Net) .......................................................... 4.30 19.314 Interest and Dividend Income .................................................................................................................. (75.90) (109.59)5 Interest Expense ............................................................................................................................................. 84.36 39.986 Miscellaneous expenditure written off ............................................................................................... 1.92 1.537 Profit on Sale / Write off of Investment .............................................................................................. (1.40) 0.118 Provision for Mines Restoration ............................................................................................................... 3.72 1.419 Provision for Retirement Benefits ........................................................................................................... (55.79) 33.1510 Provision for Doubtful Debts and Advances (Net of adjustment) ........................................... 34.64 4.2211 Consumption of Machinery spares ........................................................................................................ 14.01 4.8712 Share in Minority interest .......................................................................................................................... (0.06) (0.03)13 Share of earnings from Associates ......................................................................................................... (3.16) (2.39)14 Wealth Tax provision .................................................................................................................................... 1.27 0.79

Operating profit before working capital changes ..................................................................................... 2,631.74 1,896.16Adjustments for:15 Trade and other receivables ...................................................................................................................... 20.74 (137.04)16 Inventories ......................................................................................................................................................... 13.25 (86.07)17 Assets held for disposal .............................................................................................................................. 0.53 2.6218 Trade and other payables ........................................................................................................................... 202.16 351.57

Cash generated from operations ....................................................................................................................... 2,868.42 2,027.2419 Direct Taxes Paid - (Net) .............................................................................................................................. (494.16) (319.31)

NetNetNetNetNet C C C C Cash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities ................................................................................................... 2,374.262,374.262,374.262,374.262,374.26 1,707.931,707.931,707.931,707.931,707.93

B. Cash flow from investing activities20 Purchase of Fixed Assets ............................................................................................................................. (1,560.74) (1,577.16)21 Sale of Fixed Assets ....................................................................................................................................... 13.46 17.7922 Purchase of Investments {includes Rs. 16.24 Crore towards investment in equity of a

subsidiary Company (Previous Year - Rs. 7.31 Crore)} ................................................................... (4,737.78) (3,897.75)23 Sale of Investments {includes Rs. Nil towards sale of investment in subsidiary

Company (Previous Year - Rs. 41.85 Crore)} ....................................................................................... 4,043.50 4,193.78(Total consideration is in cash and cash equivalents)

24 Interest and Dividend Received ............................................................................................................... 84.82 103.84

NetNetNetNetNet cash used in in cash used in in cash used in in cash used in in cash used in invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities .......................................................................................................... (2,156.74)(2,156.74)(2,156.74)(2,156.74)(2,156.74) (1,159.50)(1,159.50)(1,159.50)(1,159.50)(1,159.50)C. Cash flow from financing activities

25 Interest paid {includes amount capitalised Rs. 26.38 Crore(Previous Year - Rs. 1.36 Crore)} ................................................................................................................ (105.49) (40.31)

26 Proceeds from issue of Share Capital ................................................................................................... 1.90 1.3927 Short term Borrowings - (Net) ................................................................................................................. - (16.03)28 Proceeds from Long term Borrowings .................................................................................................. 300.00 200.9329 Repayment of Long term Borrowings ................................................................................................... (215.11) (8.35)30 Dividend paid (including dividend distribution tax) ...................................................................... (435.93) (435.14)

NetNetNetNetNet cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing activitiestivitiestivitiestivitiestivities ......................................................................................................... (454.63)(454.63)(454.63)(454.63)(454.63) (297.51)(297.51)(297.51)(297.51)(297.51)

Net increase/(decrease) in cash and cash equivalents ............................................................................ (237.11) 250.92

Cash and cash equivalents Opening Balance ....................................................................................... 991.48 746.41Transfer on divestment of Subsidiary .............................................. - (5.85)Taken over on acquisition of Subsidiary ......................................... 0.05 -Closing Balance .......................................................................................... 754.42 991.48

Notes : 1 All figures in brackets are outflow.2 Closing cash and cash equivalents includes amounts earmarked for specific purposes Rs. 25.23 Crore (Previous Year - Rs. 21.98 Crore).3 Cash and cash equivalents are Cash and Bank Balances as per Balance Sheet.4 Direct Taxes paid are treated as arising from operating activities and are not bifurcated between investing and financing activities.5 Previous year’s figures have been regrouped / restated wherever necessary.






}

113

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL 2009 2008


AAAAAUUUUUTTTTTHORHORHORHORHORISED -ISED -ISED -ISED -ISED -

22,50,00,000 Equity Shares of Rs. 10 each .................................................................................... 225.00 225.00

10,00,00,000 Preference Shares of Rs. 10 each ........................................................................... 100.00 100.00

325.00 325.00


18,87,88,179 (Previous Year - 18,87,29,706) Equity Shares of Rs. 10 each ...................... 188.78 188.72


18,77,40,292 (Previous Year - 18,76,81,819) Equity Shares of Rs. 10 each fully paid 187.74 187.68

Add : 3,84,060 (Previous Year - 3,84,060) Equity Shares of Rs. 10 eachForfeited - Amount paid ......................................................................................................................... 0.20 0.20

187.94 187.88

TOTAL ... 187.94 187.88

Notes :Out of the above60,72,640 (Previous Year - 60,72,640) Equity Shares of Rs. 10 each, fully paid issued for consideration other than cash pursuant to contracts.9,19,52,080 (Previous Year - 9,19,52,080) Equity Shares of Rs. 10 each, fully paid issued by way of Bonus Shares by utilisation of SecuritiesPremium and Reserves.Options in force as of December 31, 2009 under the Employees Stock Option Schemes - 4,054 Shares - (Previous Year - 81,654 Shares)ESOS 2001 - Vested Options exercisable @ Rs. 127/- per share till October 30, 2010 - 4,054 Shares - (Previous Year - 7,567 Shares)

ESOS 2004 - Vested Options exercisable @ Rs. 314/- per share till December 15, 2009 - Nil - (Previous Year - 74,087 Shares)

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2, RLE - 2, RLE - 2, RLE - 2, RLE - 2, RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS 2009 2008


Capital Reserve ........................................................................................................................................... 15.07 15.07Less:Provision for Capital subsidy receivable {Refer Note - 13B(c)} ................................... 15.00 -

0.07 15.07

Securities Premium .................................................................................................................................. 842.93 841.50Add:Received during the year ............................................................................................................. 1.76 1.43

844.69 842.93

General Reserve ......................................................................................................................................... 1,404.61 1,054.61Add:Amount transferred from Profit and Loss Account ......................................................... 350.00 350.00Add:Additions / Adjustment during the year .............................................................................. 0.02 -

1,754.63 1,404.61

Debenture Redemption Reserve ......................................................................................................... 10.00 -Add:Amount transferred from Profit and Loss Account ......................................................... 25.00 10.00

35.00 10.00

Amortisation Reserve .............................................................................................................................. 6.49 5.86Add:Amount transferred from Profit and Loss Account ......................................................... 0.65 0.63

7.14 6.49

Employees Stock Option Outstanding ............................................................................................. 0.02 0.02

Profit and Loss Account .......................................................................................................................... 3,040.37 2,357.25

TOTAL ... 5,681.92 4,636.37

SCHEDULES FORMING PART OF THECONSOLIDATED BALANCE SHEET

114

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, SECULE - 3, SECULE - 3, SECULE - 3, SECULE - 3, SECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS 2009 2008

Rs. Crore Rs. Crore

PRIVATELY PLACED NON - CONVERTIBLE DEBENTURES

*Secured by a charge on all movable and immovable assets under theDebenture Trust Deed

(a) 11.30% Non - Convertible Debentures redeemable at par onDecember 09, 2013 ......................................................................................................................... 200.00 200.00

(b) 8.45% Non-Convertible Debentures redeemable at par onOctober 07, 2014 ............................................................................................................................. 300.00 -

Term Loans from Banks .......................................................................................................................... 50.00 250.00

*Secured by a Mortgage on certain immovable Properties and hypothecationof all movable assets except book debts.

TOTAL ... 550.00 450.00

* The mortgage / charges indicated in above rank pari-passu inter-se and are subject to the prior charges in favour of the Company’sBankers on specific movable assets for securing working capital requirements / guarantee facilities.

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 4, ULE - 4, ULE - 4, ULE - 4, ULE - 4, UNSECUNSECUNSECUNSECUNSECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS 2009 2008

Rs. Crore Rs. Crore

Long Term Loans

Financial Institution ................................................................................................................................. - 12.09{Paid during the year to Karnataka Road Development Corporation Limited (KRDC)in respect of Company’s share of loan availed by KRDC from HUDCO}

Deferred payment Liability - IDCOL .................................................................................................. 9.74 11.36(Refer Note -17)

Deferred Sales Tax Loans ....................................................................................................................... 7.18 8.58

TOTAL ... 16.92 32.03


115


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ALE - 5, FIXED ASSETSSETSSETSSETSSETSSSSSRs. Crore

GROSS BLOCK AT COST TOTAL NET BLOCKFIXED ASSETS DEPRECIATION/

AMORTISATION

As at Additions on Additions/ Deductions/ Deductions on As at For the Upto As at As at31-12-2008 Acquisition of Adjustments Adjustments cessation of 31-12-2009 year ended 31-12-2009 31-12-2009 31-12-2008

Subsidiary Subsidiary 31-12-2009

(a) (b) (c) (d) (e) (f) (g) (h) (i) ( j) (k)

TTTTTangible Assets :angible Assets :angible Assets :angible Assets :angible Assets :

1. Freehold Land 100.55 0.04 48.21 0.03 - 148.77 - - 148.77 100.55

2. Leasehold Land 49.06 - 9.33 0.07 - 58.32 6.63 24.34 33.98 23.44

3. Buildings 592.15 0.08 172.90 1.31 - 763.82 26.18 146.34 617.48 487.61

4. Machinery, Plant and Kilns 4,031.39 0.02 633.52 46.86 - 4,618.07 250.13 1,997.59 2,620.48 2,248.81

5. Roads, Bridges and Fences 107.91 - 15.17 0.02 - 123.06 6.58 35.45 87.61 79.05

6. Water Works 27.16 - 2.09 0.13 - 29.12 1.43 23.23 5.89 5.23

7. Railway Sidings 58.14 - 11.74 - - 69.88 2.54 29.12 40.76 31.56

8. Rolling Stock 93.43 - 40.60 0.19 - 133.84 3.61 63.56 70.28 33.30

9. Furniture, Fixtures and Equipments 99.47 - 15.23 3.70 - 111.00 5.70 31.42 79.58 71.83

10. Motor Cars, Trucks, etc. 27.06 - 1.96 1.50 - 27.52 4.33 7.78 19.74 22.42

11. Electrical Installations 838.40 - 123.04 11.16 - 950.28 42.99 372.49 577.79 499.58

Sub Total 6,024.72 0.14 1,073.79 64.97 - 7,033.68 350.12 2,731.32 4,302.36 3,603.38

InInInInIntangible Assets :tangible Assets :tangible Assets :tangible Assets :tangible Assets :

12. Computer Software 50.97 - 6.92 - - 57.89 18.10 45.46 12.43 23.61

13. Goodwill 38.30 - 16.13 - - 54.43 4.91 9.81 44.62 33.40

14. Mining Rights - - 19.02 - - 19.02 - - 19.02 -

Sub Total 89.27 - 42.07 - - 131.34 23.01 55.27 76.07 57.01

TOTAL 6,113.99 0.14 1,115.86 64.97 - 7,165.02 373.13 2,786.59 4,378.43 3,660.39

Previous Year 5,592.34 - 618.45 75.48 21.32 6,113.99 320.53 2,453.60 3,660.39

15. Capital Work-in-Progress 2,157.47 1,611.40{including Capital advancesRs. 202.14 Crore(Previous Year - Rs. 360.36 Crore)}

Notes:- (i) Cost of Shares Rs. 6,710 (Previous Year - Rs. 6,710) in various Co-operative Housing Societies, in respect of 20 residential flats (Previous Year - 20) areincluded under Item No. 3 ‘Buildings’.

(ii) Rolling stock includes assets given on lease to Railways under “Own Your Wagons” Scheme, Gross Block Rs. 28.48 Crore (Previous Year - Rs. 28.48 Crore)and accumulated depreciation Rs. 28.48 Crore (Previous Year - Rs. 28.48 Crore).

(iii) Machinery Plant & Kilns, Roads Bridges & Fences and Electrical Installations include Gross Block of Rs. 1.48 Crore (Previous Year - Rs. 1.48 Crore),Rs. 26.17 Crore (Previous Year - Rs. 24.50 Crore), Rs. 11.20 Crore (Previous Year - Rs. 11.20 Crore) and Net Block Rs. 0.59 Crore (Previous Year - Rs. 0.89Crore), Rs. 8.99 Crore (Previous Year - Rs. 12.44 Crore), Rs. Nil (Previous Year - Rs. Nil) respectively, in respect of expenditure incurred on capital assets,ownership of which does not vest in the Company.

(iv) Goodwill comprises of investment in Subsidiaries.

116


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (At Cost unless otherwise stated) Face Value 2009 2008


TRADE INVESTMENTS

Equity Shares - Fully Paid (Quoted):-

Shiva Cement Limited ............................................................................................ 2 2,15,00,000 23.65 23.65

ASSOCIATE COMPANY

Equity Shares - Fully Paid (Unquoted):-

Alcon Cement Company Pvt. Ltd. ...................................................................... 10 4,08,001 22.94 22.41{includes unamortised Goodwill of Rs. 13.33 Crore(Previous Year - Rs. 14.95 Crore)}

OTHER INVESTMENTS

(a) GOVERNMENT AND TRUSTEE SECURITIES

(i) Quoted * ............................................................................................................. - - -

(ii) Unquoted **

5.13% Himachal Pradesh Infrastructure Development Board Bonds 10,00,000 37 3.71 3.71

{** includes Securities of the face value of Rs. 0.01 Crore(Previous Year - Rs. 0.01 Crore) - deposited with Governmentsand others as Security Deposits}

(b) Equity Shares - Fully Paid (Quoted):-# The India Cements Ltd. ................................................................................ 10 784 - -# Dalmia Cement (Bharat) Ltd. .................................................................... 2 1,865 - -# Mysore Cement Ltd. ...................................................................................... 10 350 - -# The Andhra Cement Company Ltd. ........................................................ 10 52 - -# HDFC Bank Ltd. ................................................................................................ 10 500 - -# Shree Digvijay Cement Company Ltd. ................................................... 10 180 - -# Panyam Cements & Mineral Industries Ltd. ...................................... 10 50 - -# OCL India Limited ........................................................................................... 2 240 - -

(c) Equity Shares - Fully Paid (Unquoted):-* Kanoria Sugar & General Mfg. Company Ltd. ................................... 10 4 - -* Bio - Tech Consortium India Ltd. ............................................................. 10 50,000 - -* Gujarat Composites Ltd. .............................................................................. 10 60 - -* Rohtas Industries Ltd. ................................................................................... 10 220 - -* The Jaipur Udyog Ltd. ................................................................................... 10 120 - -* The Sone Valley Portland Cement Company Ltd. ............................. 5 100 - -* The Travancore Cement Company Ltd. ................................................. 10 100 - -* Ashoka Cement Ltd. ...................................................................................... 10 50 - -* Digvijay Finlease Ltd. .................................................................................... 10 90 - -# Landmark property Development ........................................................... 2 720 - -# OCL Iron and Steel Ltd. ................................................................................ 2 720 - -

(d) Investment in Mutual Funds (Unquoted):-



Birla Sunlife Short Term Fund - Institutional - Daily Dividend ............ 10 7,065,714.341 - 7.07


Prudential ICICI Super Institutional plan - Daily Dividend .................... 10 20,169,248.949 - 20.17

117







DWS Insta Cash plus Fund - Institutional Plan - Daily Dividend ........ 10 10,069,097.794 - 10.09


Reliance Liquidity Fund - Daily Dividend ....................................................... 10 11,076,022.874 - 11.08












ING Liquid Fund -Super Institutional plan - Daily Dividend ................. 10 10,061,498.304 - 10.06


UTI Liquid Fund - Cash Plan - Institutional plan- Daily Dividend ...... 1,000 49,231.069 - 5.02






Sundaram BNP Paribas Money Fund - Super Inst - DDR ........................ 10 3,969,840.952 - 4.01






ING Liquid Fund - Super IP - Daily Dividend ................................................ 10 15,010,094.302 - 15.02




DBS Chola Liquid Institutional Dividend Reinvestment Plan ............... 10 11,939,905.440 - 12.00



Reliance Medium Term Fund - Retail Plan .................................................... 10 7,373,849.513 - 13.05

Reliance Liquidity Fund .......................................................................................... 1,000 562,270.738 56.31 -

Reliance Liquidity Fund .......................................................................................... 10 10,618,395.460 18.16 -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (Contd.) Face Value 2009 2008

Rs. Numbers Rs. Crore Rs. Crore

118

Kotak Liquid Institutional Premium ................................................................. 10 70,463,707.811 75.37 -

Birla Sun Life Cash Plus Institutional Premium .......................................... 10 73,426,328.568 73.47 -

Templeton India TMA Super Institutional Plan .......................................... 10 46,179,212.866 46.23 -

DWS Insta Cash Institutional .............................................................................. 10 75,281,225.113 75.45 -

DBS Chola Liquid Institutional ........................................................................... 10 24,761,689.543 25.15 -

SBI Magnum Instacash Fund .............................................................................. 10 46,770,488.752 49.22 -

UTI Liquid Fund Cash Plan IP .............................................................................. 1,000 752,682.564 75.28 -

IDFC Cash Fund Plan C Institutional ............................................................... 10 44,213,496.169 44.22 -

Principal Cash Management Fund Institutional Premium ................... 10 37,098,651.717 37.16 -

LIC Mutual Fund Liquid Plan ............................................................................... 10 74,665,476.788 75.29 -

Canara Robeco Liquid Super Institutional .................................................... 10 27,466,856.675 34.08 -

HDFC Liquid Fund Premium Plan ...................................................................... 10 73,550,308.839 74.15 -

Tata Liquid Fund Ship ............................................................................................. 10 56,033,762.587 56.23 -

Fortis Overnight Fund Institutional Plus ....................................................... 10 40,109,222.677 40.12 -

Religare Liquid Fund Institutional Plan .......................................................... 10 30,095,986.326 30.14 -

Sundaram BNP Paribas Money Fund Super Inst DDR ............................. 10 17,019,213.569 17.08 -

Baroda Pioneer Liquid Fund Institutional ..................................................... 10 40,112,346.656 40.15 -

Fidelity Cash Fund Super IP ................................................................................. 10 9,031,218.350 9.03 -

Prudential ICICI Super Institutional Plan ....................................................... 100 7,106,565.893 75.14 -

DSP Black Rock Cash Plus Fund Institutional .............................................. 1,000 59,975.236 6.01 -

JP Morgan India Liquid Fund .............................................................................. 10 13,002,258.496 13.01 -

JM High Liquidity Super IP ................................................................................... 10 39,991,683.109 40.01 -

Sundaram BNP Paribas Money Fund Super Institutional ...................... 10 37,647,207.314 38.01 -

Axis Liquid Fund ....................................................................................................... 10 50,003.992 5.00 -

Baroda Pioneer Liquid Fund ................................................................................. 10 4,322,465.685 4.34 -

UTI Money Market Fund - Growth Plan ......................................................... 1,000 29,387.707 3.00 -

LICMF Saving Plus Fund - Growth Plan .......................................................... 10 3,458,580.045 5.00 -

1,141.81 467.11

1141.81 470.82

TOTAL ... 1192.11 516.88

Notes (I) Aggregate Net Cost and Market Value of Company’s Investments :-

As at 31-12-2009 As at 31-12-2008

Aggregate Market Aggregate MarketNet Cost Value Net Cost ValueRs. Crore Rs. Crore Rs. Crore Rs. Crore

Quoted ................................................................................................... 23.65 19.58 23.65 11.87

Unquoted .............................................................................................. 1,168.46 493.23

Total Investments .............................................................................. 1,192.11 516.88

(II) All investments are “Long Term” except investments in Mutual funds.

(III) #Denotes shares sold during the year.

(IV) *Denotes amount less than Rs. 50,000.

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, ILE - 6, ILE - 6, ILE - 6, ILE - 6, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS - (Contd.) Face Value 2009 2008



119


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7, ILE - 7, ILE - 7, ILE - 7, ILE - 7, INVENTNVENTNVENTNVENTNVENTORORORORORIIIIIESESESESES 2009 2008

Rs. Crore Rs. Crore

Raw Materials ............................................................................................................................................. 98.55 79.04

Stores & Spare Parts, Packing Material and Fuels ...................................................................... 430.50 492.00

Work-in-Progress ........................................................................................................................................ 168.96 149.44

Finished Goods ........................................................................................................................................... 88.08 78.86

TOTAL ... 786.09 799.34

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 8, SULE - 8, SULE - 8, SULE - 8, SULE - 8, SUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS 2009 2008


SUNDRY DEBTORS (SECURED AND CONSIDERED GOOD)

(a) Over Six Months .............................................................................................................................. 0.01 0.26

(b) Others ................................................................................................................................................... 35.40 70.11

35.41 70.37SUNDRY DEBTORS (UNSECURED)

(a) Over Six Months

(i) Sale of Products and Services

Considered Good ................................................................................................................... 4.40 5.58

Considered Doubtful ............................................................................................................ 8.15 6.87

12.55 12.45(ii) Railway, Insurance and Other Claims {includes Rs. 90.70 Crore due

from Central / State Governments (Previous Year - Rs. 91.57 Crore)}

Considered Good ................................................................................................................... 51.51 96.45

Considered Doubtful ............................................................................................................ 47.97 0.34

99.48 96.79

112.03 109.24

Less: Provision made for Bad and Doubtful Debts .......................................................... 56.12 7.21{Refer Note - 13B(c)}

55.91 102.03

(b) Others - (Considered Good)

(i) Sale of Products and Services .......................................................................................... 147.28 125.23

(ii) Railway, Insurance and Other Claims {includes Rs. 33.49 Crore duefrom Central / State Governments (Previous Year - Rs. 50.60 Crore)} ............ 35.32 60.22

182.60 185.45

238.51 287.48

TOTAL ... 273.92 357.85

120

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 9, CLE - 9, CLE - 9, CLE - 9, CLE - 9, CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANK BK BK BK BK BALANCALANCALANCALANCALANCESESESESES 2009 2008

Rs. Crore Rs. Crore

Cash on Hand ..................................................................................................................................................... 2.24 0.87

Balance with Scheduled Banks

In Current Account .......................................................................................................................................... 96.54 93.81

In Fixed Deposits .............................................................................................................................................. 655.63 896.79

Post Office Savings Accounts ...................................................................................................................... 0.01 0.01{Maximum balance during the year Rs. 0.01 Crore (Previous Year - Rs. 0.01 Crore)}

TOTAL ... 754.42 991.48

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 10, OLE - 10, OLE - 10, OLE - 10, OLE - 10, OTTTTTHHHHHER CUER CUER CUER CUER CURRRRRRRRRRENT AENT AENT AENT AENT ASSETSSETSSETSSETSSETSSSSS 2009 2008

Rs. Crore Rs. Crore

Accrued Interest ................................................................................................................................................ 6.07 15.18

Assets held for disposal ................................................................................................................................ 6.23 6.81

TOTAL ... 12.30 21.99

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 11, LLE - 11, LLE - 11, LLE - 11, LLE - 11, LOOOOOANS ANANS ANANS ANANS ANANS AND ADD ADD ADD ADD ADVVVVVANCANCANCANCANCES ES ES ES ES (Unsecured, Considered Good, unless otherwise stated) 2009 2008


Balances with Excise, Customs and Port Trust Authorities on Current Accounts .............. 139.83 129.52


Advances Recoverable in cash or in kind or for value to be received ............................. 146.42 138.89

Advances and Deposits with Railways, Government Bodies and Others

Considered Good .................................................................................................................................... 178.13 182.32

Considered Doubtful ............................................................................................................................. 38.88 38.23

217.01 220.55

Less - Provision made for Doubtful Advances ........................................................................... 38.88 38.23

178.13 182.32

Advance payments against taxes ............................................................................................................. 39.06 105.81

TOTAL ... 503.44 556.54


121


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, CULE - 12, CULE - 12, CULE - 12, CULE - 12, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES 2009 2008


Sundry Creditors ........................................................................................................................................ 1,743.26 1,558.30

Deposits from Dealers and Others .................................................................................................... 397.49 319.19

Investor Education and Protection Fund(Appropriate amount shall be transferred to “Investor Educationand Protection Fund” if and when due)

Unpaid Dividend ........................................................................................................................................ 24.02 20.77

Unpaid Matured Deposits ..................................................................................................................... 0.18 0.23

24.20 21.00

Interest on Secured Loans accrued but not due ......................................................................... 7.43 2.19

TOTAL ... 2,172.38 1,900.68

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 13, PRLE - 13, PRLE - 13, PRLE - 13, PRLE - 13, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS 2009 2008

Rs. Crore Rs. Crore

Provision for Retirement Benefits ...................................................................................................... 100.60 156.40(Refer Note - 7)

Provision for Mines Restoration ......................................................................................................... 9.98 6.98(Refer Note - 11)

Provision for Income Tax ........................................................................................................................ 696.76 580.31

Provision for Fringe Benefit Tax .......................................................................................................... - 2.24

Proposed Dividend .................................................................................................................................... 244.06 187.68

Dividend Distribution Tax ...................................................................................................................... 41.48 31.90

TOTAL ... 1,092.88 965.51

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 14, MISCLE - 14, MISCLE - 14, MISCLE - 14, MISCLE - 14, MISCELLANELLANELLANELLANELLANEOUS EEOUS EEOUS EEOUS EEOUS EXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE E E E E (To the extent not written off or adjusted) 2009 2008

Rs. Crore Rs. Crore

Preliminary Expenses ............................................................................................................................... 0.97 1.13

TOTAL ... 0.97 1.13

122

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 15, OLE - 15, OLE - 15, OLE - 15, OLE - 15, OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME 2009 2008


Other OperOther OperOther OperOther OperOther Operaaaaating Incting Incting Incting Incting Incomeomeomeomeome ..................................................................................................................... 165.40 166.52{Includes Gain on Exchange (Net) - Rs. 3.66 Crore (Previous Year - Rs. 0.18 Crore)}(Refer Note -18)

Other IncOther IncOther IncOther IncOther Incomeomeomeomeome

Profit on Sale of Investments .............................................................................................................. 1.40 1.84

Interest on Income tax Refund (Previous Year - Net of interest Rs. 42.40 Crore) .......... - 23.14

Other Interest Income ............................................................................................................................. 41.27 51.59{Inclusive of Tax Deducted at source - Rs. 10.11 Crore (Previous Year - Rs. 9.49 Crore)}

Dividend from other Investments ..................................................................................................... 34.63 34.86

77.30 111.43

TOTAL ... 242.70 277.95

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 16, MLE - 16, MLE - 16, MLE - 16, MLE - 16, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES 2009 2008



Purchase of Cement and other Product .......................................................................................... 129.16 122.94

Raw Materials Consumed ..................................................................................................................... 1,167.69 1,029.81

Stores and Spare parts Consumed .................................................................................................... 11.27 12.99

Packing Materials Consumed .............................................................................................................. 238.72 280.14

Power and Fuel ........................................................................................................................................... 1,550.87 1,611.81

Repairs to Building ................................................................................................................................... 14.41 15.02

Repairs to Machinery ............................................................................................................................... 329.47 283.77

Repairs to Other Items ............................................................................................................................ 71.43 74.66

Royalties ........................................................................................................................................................ 99.04 86.86

Excise Duties (including Education Cess) ....................................................................................... 89.17 129.80{includes captive consumption of Clinker Rs. 85.37 Crore (Previous Year - Rs. 119.01 Crore)}

3,701.23 3,647.80

PPPPPAAAAAYYYYYMENTMENTMENTMENTMENTS S S S S TTTTTO ANO ANO ANO ANO AND PRD PRD PRD PRD PROOOOOVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLOOOOOYYYYYEESEESEESEESEES

Salaries, Wages, Dearness Allowance and Bonus ....................................................................... 346.94 338.92

Contributions / Provisions to and for Provident and Other Funds {Refer Note - 7(g)} 19.77 66.00

Workmen and Staff Welfare Expenses ............................................................................................ 34.49 44.73

401.20 449.65ADADADADADMIMIMIMIMINNNNNISISISISISTTTTTRRRRRAAAAATTTTTIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES

Rent ................................................................................................................................................................. 48.35 45.34

Rates and Taxes {includes Wealth Tax Rs. 1.27 Crore (Previous Year - Rs. 0.79 Crore)} 103.93 100.52

Insurance ....................................................................................................................................................... 17.92 18.29

Loading, Transportation and Other Charges ................................................................................. 163.40 170.04

Discount, Rebates and Allowances ................................................................................................... 93.49 105.20

Commission on Sales .............................................................................................................................. 23.12 20.24

Other Expenses {includes Loss on sale / write off of Fixed Assets (Net)- Rs. 4.30 Crore(Previous Year - Rs. 8.91 Crore)} .......................................................................................................... 310.83 422.26

Provision for Bad and Doubtful Debts {Refer Note - 13B(c)} ................................................. 34.73 5.09

SCHEDULES FORMING PART OF THECONSOLIDATED PROFIT AND LOSS ACCOUNT

Total carried over... 795.77 886.98

123

Advertisement ............................................................................................................................................ 53.17 47.81

Outward Freight Charges on Cement etc. ..................................................................................... 1,092.73 997.52

Miscellaneous Expenses written off ................................................................................................. 1.92 1.53

1,943.59 1,933.84

Value of Subsidiary Companies Stock Transferred ..................................................................... - (1.72)

(I(I(I(I(INCNCNCNCNCRRRRREEEEEAAAAASE) / DECSE) / DECSE) / DECSE) / DECSE) / DECRRRRREEEEEAAAAASE ISE ISE ISE ISE IN SN SN SN SN STTTTTOOOOOCCCCCKKKKKS IS IS IS IS IN N N N N TTTTTRRRRRADE ANADE ANADE ANADE ANADE AND D D D D WWWWWORORORORORKKKKK-I-I-I-I-IN-PRN-PRN-PRN-PRN-PROOOOOGRGRGRGRGRESSESSESSESSESS

Closing Stock -Closing Stock -Closing Stock -Closing Stock -Closing Stock -

Finished Goods ........................................................................................................................................... 88.08 78.86

Work-in-Progress ........................................................................................................................................ 168.96 149.44

257.04 228.30

Opening Stock -Opening Stock -Opening Stock -Opening Stock -Opening Stock -

Finished Goods ........................................................................................................................................... 78.86 81.26

Work-in-Progress ........................................................................................................................................ 149.44 149.00

228.30 230.26

(28.74) 1.96

TOTAL ... 6,017.28 6,031.53

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 17, ILE - 17, ILE - 17, ILE - 17, ILE - 17, INTNTNTNTNTERERERERERESESESESESTTTTT 2009 2008

Rs. Crore Rs. Crore

Debentures ................................................................................................................................................... 28.99 1.36

Term Loans ................................................................................................................................................... 15.97 16.36

Interest on Income Tax (Net of interest on refund Rs. 20.33 Crore) .................................. 17.58 -

Others ............................................................................................................................................................. 48.20 23.62

110.74 41.34

Less - Adjustments for Interest Capitalised .................................................................................. 26.38 1.36

TOTAL ... 84.36 39.98

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 18, ELE - 18, ELE - 18, ELE - 18, ELE - 18, EXXXXXCCCCCEPEPEPEPEPTTTTTIONAL ITIONAL ITIONAL ITIONAL ITIONAL ITEMEMEMEMEMSSSSS 2009 2008

Rs. Crore Rs. Crore

Profit on Sale of Investments in Subsidiary .................................................................................. - 30.26

Profit on Sale of Land .............................................................................................................................. - 12.29

TOTAL ... - 42.55

SCHEDULES FORMING PART OF THECONSOLIDATED PROFIT AND LOSS ACCOUNT

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 16, MLE - 16, MLE - 16, MLE - 16, MLE - 16, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSES XPENSES XPENSES XPENSES XPENSES (contd.) 2009 2008Rs. Crore Rs. Crore Rs. Crore

Total brought over... 795.77 886.98

124

SCHEDULES FORMING PART OF THE CONSOLIDATEDBALANCE SHEET AND PROFIT AND LOSS ACCOUNT

SCHEDULE - 19, NOTES TO ACCOUNTS

1.1.1.1.1. Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontion

(i) The Consolidated Financial Statements are prepared in accordance with Accounting Standard (AS) 21 on Consolidated FinancialStatements and (AS) 23 on Accounting for Investments in Associates in Consolidated Financial Statements notified pursuant tothe Companies (Accounting Standards) Rules, 2006 (as amended). The Consolidated Financial Statements comprise the financialstatements of ACC Limited (the Company), its subsidiaries and associate. The Company, its subsidiaries and associate constitutethe ACC Group. Reference in these notes to the 'Company' or 'ACC' shall mean to include ACC Limited or any of its subsidiaries, orassociate consolidated in these financial statements unless otherwise stated.

(ii) The list of Subsidiary Companies which are included in consolidation and the Parent Company's holdings therein are as under:

Name of the CName of the CName of the CName of the CName of the Companompanompanompanompanyyyyy PPPPPererererercencencencencentage Holdingtage Holdingtage Holdingtage Holdingtage Holding

2009 2008

1 ACC Concrete Limited (ACCCL) 100% 100%

2 Bulk Cement Corporation (India) Limited (BCCI) 94.65% 94.65%

3 ACC Mineral Resources Limited (formerly The Cement MarketingCompany of India Limited) 100% 100%

4 Lucky Minmat Limited 100% 100%

5 National Limestone Co. Pvt. Limited (w.e.f. April 20, 2009) 100% -

6 ACC Machinery Company Limited (AMCL) (upto March 10, 2008) - 100%

Each of the above Subsidiary Companies is incorporated in India.

(iii) Alcon Cement Company Private Limited is the only Associate Company in which ACC has a holding of 40% with effect fromApril 1, 2008.

(iv) The financial statements have been prepared to comply in all material aspects in respect with the notified Accounting StandardRules, 2006 (as amended).

(v) Financial statements are based on historical cost and are prepared on accrual basis.

(vi) Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(vii) The financial statements of the Company and its Subsidiary Companies have been consolidated on a line-by-line basis by addingtogether the book value of like items of assets, liabilities, income and expenses, after eliminating intra-group balances and intra-group transactions resulting in unrealized profits or unrealized cash losses.

(viii) The consolidated financial statements have been prepared using uniform accounting policies for like transactions and otherevents in similar circumstances and are presented, to the extent possible, in the same manner as the Company's separatefinancial statements.

(ix) The excess of cost of investment in the Subsidiary Companies over the Company's portion of equity of the Subsidiary at the dateof investment made is recognized in the financial statements as goodwill. Goodwill is amortised over a period of ten years fromthe date of acquisition / investment. The excess of Company's portion of equity of the Subsidiary over the cost of the investmentstherein is treated as Capital Reserve.

2.2.2.2.2. Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestes

The preparation of financial statements in conformity with generally accepted accounting principles requires management to makeestimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dateof the financial statements and the results of operations during the reporting period end. Although these estimates are based uponmanagement's best knowledge of current events and actions, actual results could differ from these estimates.

3.3.3.3.3. SignificanSignificanSignificanSignificanSignificanttttt acc acc acc acc accounounounounounting policiesting policiesting policiesting policiesting policies

(i)(i)(i)(i)(i) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue canbe reliably measured.

Sale of PrSale of PrSale of PrSale of PrSale of Producoducoducoducoducts and Serts and Serts and Serts and Serts and Servicesvicesvicesvicesvices

a) Revenue is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Exciseduties deducted from turnover (gross) are the amounts that are included in the amount of turnover (gross) and not the entireamount of liability that arose during the year. Excise duties in respect of finished goods are shown separately as an item ofManufacturing and Other Expenses and included in the valuation of finished goods.

b) Sales include the amount of Sales Tax / VAT refunds received / due in accordance with incentive schemes.

125

InInInInInterterterterterestestestestest and Dividend Inc and Dividend Inc and Dividend Inc and Dividend Inc and Dividend Incomeomeomeomeome

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.Dividend income is recognised when the shareholders' right to receive dividend is established by the Balance Sheet date.

(ii)(ii)(ii)(ii)(ii) AccAccAccAccAccounounounounounting of claimsting of claimsting of claimsting of claimsting of claims

a) Claims receivable are accounted at the time when such income has been earned by the Company depending on the certaintyof receipts. Claims payable are accounted at the time of acceptance.

b) Claims raised by Government Authorities regarding taxes and duties, which are disputed by the Company, are accountedbased on the merits of each claim.

(iii)(iii)(iii)(iii)(iii) Debenture / Share issue expenses and premium payable on Debentures are adjusted in the same year against the SecuritiesPremium Account as permitted by Section 78(2) of the Companies Act, 1956.

(iv)(iv)(iv)(iv)(iv) FFFFFixixixixixed Assetsed Assetsed Assetsed Assetsed Assets

a) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation and impairment losses.

b) Depreciation is provided on the straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956, ona pro-rata basis.

c) The useful life of transit mixers and pumps is estimated at 8 years and 6 years respectively. These assets are depreciated overthe useful life on straight line method on a pro-rata basis.

d) Cost of leasehold land is amortised over the period of the lease.

e) In respect of quarry freehold land, amortisation reserve is created by amortising the cost over the number of years of themining rights of the quarries.

f) Capital assets whose ownership does not vest in the Company have been depreciated over the period of five years.

g) Machinery spares which can be used only in connection with a particular item of Fixed Assets and the use of which isirregular, are capitalized at cost net of Cenvat and are depreciated over the remaining useful life of the related asset. Thewritten down value of such spares is charged to the Profit and Loss Account, on issue for consumption.

(v)(v)(v)(v)(v) BorrBorrBorrBorrBorrowing Cowing Cowing Cowing Cowing Costsostsostsostsosts

Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use areincluded to the extent they relate to the period till such assets are ready to be put to use. All other borrowing costs are charged torevenue.

(vi)(vi)(vi)(vi)(vi) InInInInIntangiblestangiblestangiblestangiblestangibles

a) Computer Software cost is amortised over a period of three years.

b) Costs incurred to gain access to mineral reserves are capitalised and depreciated over the life of the quarry, which is based onthe estimated tonnes of raw materials to be extracted from the reserves.

(vii)(vii)(vii)(vii)(vii) ImpairmenImpairmenImpairmenImpairmenImpairmenttttt

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverableamount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, theestimated future cash flows are discounted to the present value at the weighted average cost of capital. Previously recognizedimpairment loss is further provided or reversed depending on changes in circumstances.

(viii)(viii)(viii)(viii)(viii) EEEEExpenditurxpenditurxpenditurxpenditurxpenditure during ce during ce during ce during ce during construconstruconstruconstruconstruction periodtion periodtion periodtion periodtion period

In case of new projects and substantial expansion of existing factories, expenditure incurred including trial production expensesnet of revenue earned, and attributable interest and financing costs, prior to commencement of commercial production arecapitalised.

(ix)(ix)(ix)(ix)(ix) InInInInInvvvvvestmenestmenestmenestmenestmentststststs

Current investments are carried at the lower of cost or fair value. Long term investments are stated at cost. Provision for diminutionin the value of long-term investments is made only if such a decline is other than temporary.

(x)(x)(x)(x)(x) LLLLLeaseseaseseaseseaseseases

Lease payments under operating lease are recognised as an expense in the Profit and Loss Account on a straight-line basis overthe lease term.

126

(xi)(xi)(xi)(xi)(xi) RRRRResearesearesearesearesearch and dech and dech and dech and dech and devvvvvelopmenelopmenelopmenelopmenelopmenttttt

Expenditure on Research phase is recognised as an expense when it is incurred. Expenditure on development phase which resultsin creation of assets is included in Fixed Assets.

(xii)(xii)(xii)(xii)(xii) InInInInInvvvvvenenenenentoriestoriestoriestoriestories

Inventories are valued as follows:

(a) Raw materials, fuels, packing materials, stores and spares

Lower of cost and net realizable value. However, materials and other items held for use in the production of inventories arenot written down below cost if the finished products in which they will be incorporated are expected to be sold at or abovecost. Cost is determined on a weighted average basis.

(b) Work-in-progress and finished goods

Lower of cost and net realizable value. Cost includes direct materials and labour and a proportion of manufacturing overheadsbased on normal operating capacity. Cost of finished goods includes excise duty.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion andestimated costs necessary to make the sale.

(xiii)(xiii)(xiii)(xiii)(xiii) FFFFForororororeign curreign curreign curreign curreign currency trency trency trency trency transacansacansacansacansactionstionstionstionstions

Foreign currency transactions are initially recorded at the rates of exchange prevailing on the date of transactions. Foreign currencymonetary items are subsequently reported using the closing rate. Non-monetary items which are carried in terms of historicalcost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Exchange differencesarising on the settlement of monetary items or on reporting Company's monetary items at rates different from those at whichthey were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expensesin the year in which they arise. The financial statements of an integral foreign operation are translated as if the transactions ofthe foreign operation have been those of the company itself. The premium on forward exchange contracts not intended fortrading or speculation purpose is amortized as expenses over the life of the contract.

(xiv)(xiv)(xiv)(xiv)(xiv)EmploEmploEmploEmploEmployyyyyee benefitsee benefitsee benefitsee benefitsee benefits

a) Defined Contribution Plan

Contribution to Officer's Superannuation Fund, ESIC and Labour Welfare Fund are recognised as an expense in the Profit andLoss Account, as they are incurred. There are no other obligations other than the contribution payable to the respective trusts.

b) Defined Benefit Plan and Other Long Term Benefits

Retirement benefits in the form of gratuity, additional gratuity, provident fund, post retirement medical benefit schemes,medical benefits under voluntary retirement scheme and other long term benefits in the form of leave encashment, silverjubilee and long service awards are determined using the projected unit credit method as at Balance Sheet date. Actuarialgains / losses are recognized immediately in the Profit and Loss Account.

c) Short term compensated absences are provided based on past experience of leave availed.

d) Payments made under the Voluntary Retirement Scheme are charged to the Profit and Loss Account immediately.

(xv)(xv)(xv)(xv)(xv) EmploEmploEmploEmploEmployyyyyees Stock Option Schemeees Stock Option Schemeees Stock Option Schemeees Stock Option Schemeees Stock Option Scheme

The intrinsic value of option granted under Employees Stock Option Schemes has been deferred, to be written off over the vestingperiod.

(xvi)(xvi)(xvi)(xvi)(xvi) IncIncIncIncIncome taxome taxome taxome taxome taxeseseseses

Tax expense comprises of current, deferred and fringe benefit tax. Current income tax and fringe benefit tax is measured at theamount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflectsthe impact of current year timing differences between taxable income and accounting income for the year and reversal of timingdifferences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date.Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income willbe available against which such deferred tax assets can be realised. Deferred tax assets are reviewed at each Balance Sheet date.

(xvii)(xvii)(xvii)(xvii)(xvii) CCCCCononononontingencies / Prtingencies / Prtingencies / Prtingencies / Prtingencies / Prooooovisionsvisionsvisionsvisionsvisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow ofresources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can bemade. Provisions are not discounted to its present value and are determined based on best estimate required to settle theobligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best

127

estimates. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefit isremote.

(xviii)(xviii)(xviii)(xviii)(xviii) Mines RMines RMines RMines RMines Restorestorestorestorestoraaaaation Etion Etion Etion Etion Expenditurxpenditurxpenditurxpenditurxpenditureeeee

The Company provides for the estimated expenditure required to restore quarries and mines. The initial recognition of theprovision for mines restoration cost comprises of the estimated costs for restoration caused by operations necessary before theraw materials can be exploited. Actual expenses for restoration are charged directly against the provision. The present obligationis revised annually based on technical estimates by internal or external specialists.

4.4.4.4.4. SegmenSegmenSegmenSegmenSegmenttttt R R R R Reporeporeporeporeportingtingtingtingting

The Company has disclosed Business Segment as the primary segment. Segments have been identified taking into account the natureof the products, the differing risks and returns, the organisation structure and internal reporting system. The Company's operationspredominantly relate to manufacture of cement. Other business segment reported is Ready Mixed Concrete. The export turnover is notsignificant in the context of total turnover. As such there are no reportable Geographical Segments.

Inter segment transfers:

Inter Segment Transfer Pricing Policy - Cement supplied to ready mixed concrete activity is based on current market prices. All otherinter segment transfers are at cost.

IIIIINNNNNFORMFORMFORMFORMFORMAAAAATTTTTION ABION ABION ABION ABION ABOUOUOUOUOUT PRT PRT PRT PRT PRIMIMIMIMIMARARARARARY BUSIY BUSIY BUSIY BUSIY BUSINNNNNESS SEGMENTESS SEGMENTESS SEGMENTESS SEGMENTESS SEGMENTSSSSSRs. Crore

CCCCCemenemenemenemenementtttt RRRRReady Mixeady Mixeady Mixeady Mixeady Mixed Ced Ced Ced Ced Concroncroncroncroncreteeteeteeteete OthersOthersOthersOthersOthers TTTTTotalotalotalotalotal

20092009200920092009 20082008200820082008 20092009200920092009 20082008200820082008 20092009200920092009 20082008200820082008 20092009200920092009 20082008200820082008

RRRRREEEEEVENVENVENVENVENUUUUUEEEEE

External sales 7,966.80 7,171.61 512.75 514.53 - 7.80 8,479.55 7,693.94

Inter-segment sales 60.40 111.26 - - - 0.68 60.40 111.94

TTTTTotal rotal rotal rotal rotal reeeeevvvvvenueenueenueenueenue 8,027.208,027.208,027.208,027.208,027.20 7,282.877,282.877,282.877,282.877,282.87 512.75512.75512.75512.75512.75 514.53514.53514.53514.53514.53 ----- 8.488.488.488.488.48 8,539.958,539.958,539.958,539.958,539.95 7,805.887,805.887,805.887,805.887,805.88

RRRRRESUESUESUESUESULLLLLTTTTT

SegmenSegmenSegmenSegmenSegmenttttt r r r r resultesultesultesultesult 2,324.282,324.282,324.282,324.282,324.28 1,618.021,618.021,618.021,618.021,618.02 (47.68)(47.68)(47.68)(47.68)(47.68) (91.85)(91.85)(91.85)(91.85)(91.85) ----- 2.712.712.712.712.71 2,276.602,276.602,276.602,276.602,276.60 1,528.881,528.881,528.881,528.881,528.88

Unallocated corporate expenses (17.44) (16.22)

Operating Profit 2,259.16 1,512.66

Interest expenses (84.36) (39.98)

Interest and Dividend income 75.90 109.59

Exceptional Items - 42.55

Income Taxes (686.79) (525.17)

PrPrPrPrProfitofitofitofitofit af af af af after taxter taxter taxter taxter tax 1,563.911,563.911,563.911,563.911,563.91 1,099.651,099.651,099.651,099.651,099.65

OOOOOTTTTTHHHHHER IER IER IER IER INNNNNFORMFORMFORMFORMFORMAAAAATTTTTIONIONIONIONION

Segment assets 7,660.66 6,512.74 232.10 225.31 - 0.09 7,892.76 6,738.14

Unallocated Corporate assets 2,166.39 1,778.86

TTTTTotal assetsotal assetsotal assetsotal assetsotal assets 10,059.1510,059.1510,059.1510,059.1510,059.15 8,517.008,517.008,517.008,517.008,517.00

Segment liabilities 2,231.85 1,802.51 105.62 99.02 - - 2,337.47 1,901.53

Unallocated corporate liabilities 1,851.74 1,791.22

TTTTTotal liabilitiesotal liabilitiesotal liabilitiesotal liabilitiesotal liabilities 4,189.214,189.214,189.214,189.214,189.21 3,692.753,692.753,692.753,692.753,692.75

Capital expenditures 1,627.81 1,294.31 17.98 83.47 - - 1,645.79 1,377.78

Depreciation and Amortisation 352.16 302.71 20.97 17.61 - 0.21 373.13 320.53

Other non-cash expenses 51.42 5.35 5.40 14.51 - - 56.83 19.86

128

5.5.5.5.5. RRRRRelaelaelaelaelated Pted Pted Pted Pted Parararararty Disclosurty Disclosurty Disclosurty Disclosurty Disclosureeeee

(A)(A)(A)(A)(A) PPPPParararararticulars of Associaticulars of Associaticulars of Associaticulars of Associaticulars of Associate / Prte / Prte / Prte / Prte / Promoter Gromoter Gromoter Gromoter Gromoter Group Coup Coup Coup Coup Companiesompaniesompaniesompaniesompanies


(i) Alcon Cement Company Private Limited Associate Company from April 01, 2008

(ii) Ambuja Cement India Private Limited Promoter Group Company

(iii) Ambuja Cements Limited Promoter Group Company

(iv) Holderind Investments Limited Promoter Group Company

(v) Holcim (India) Private Limited Promoter Group Company

(vi) Holcim Services (Asia) Limited Promoter Group Company

(vii) Holcim Group Support Limited Promoter Group Company

(viii) Holcim Singapore Limited Promoter Group Company

(ix) Holcim Trading FZCO Promoter Group Company

(x) Holcim (Lanka) Ltd. Promoter Group Company

(xi) P T Holcim Indonesia Tbk Promoter Group Company

(xii) Holcim Services (South Asia) Limited Promoter Group Company

(xiii) Holcim Foundation Promoter Group Entity

(xiv) Holcim Ltd. Promoter Group Company

(xv) Siam City Concrete Co. Limited Promoter Group Company

(xvi) Siam City Cement Public Company Limited Promoter Group Company

(xvii) National Cement Factory Promoter Group Company

(xviii) Holcim Bangladesh Limited Promoter Group Company



(i) Mr. Sumit Banerjee Managing Director

(ii) Mr. Hans J. Fuchs Managing Director of ACC Concrete Limited from July 01, 2008

(iii) Mr. Sanjay Bahadur Managing Director of ACC Concrete Limited upto June 30, 2008

(iv) Mr. R.B.S. Bir Head BCCI upto October 22, 2009

(v) Mr. K.R.K. Prusty Head BCCI from October 23, 2009

(((((C)C)C)C)C) TTTTTrrrrransacansacansacansacansactions with Associations with Associations with Associations with Associations with Associate Cte Cte Cte Cte CompanompanompanompanompanyyyyyAlcAlcAlcAlcAlcon Con Con Con Con Cemenemenemenemenementtttt C C C C Companompanompanompanompany Pvy Pvy Pvy Pvy Pvttttt. L. L. L. L. Ltd.td.td.td.td.


(i) Purchase of Finished/ Unfinished goods 67.85 47.78

(ii) Sale of Goods 26.40 19.90

(iii) Investment in Associates (Acquisition of Equity Shares) - 22.25

(iv) Interest Received - 0.01

(v) Reimbursement of Expenses / Cost of Materials / Stores Paid 0.62 0.20

(vi) Reimbursement of Expenses / Cost of Materials / Stores Received 5.61 1.03

(vii) Rendering of Services 1.35 -

(viii) Receiving of Services 0.86 -

(ix) Outstanding balance included in Current Assets 4.04 3.93

(x) Outstanding balance included in Current Liabilities 3.34 7.30

129

(D(D(D(D(D))))) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansactions rtions rtions rtions rtions relaelaelaelaelating to Prting to Prting to Prting to Prting to Promoters Gromoters Gromoters Gromoters Gromoters Group Coup Coup Coup Coup Companiesompaniesompaniesompaniesompanies


(i)(i)(i)(i)(i) Dividend paidDividend paidDividend paidDividend paidDividend paid 173.46173.46173.46173.46173.46 167.36167.36167.36167.36167.36Ambuja Cement India Private Limited 172.38 166.28Holderind Investments Limited 1.08 1.08

(ii)(ii)(ii)(ii)(ii) PPPPPurururururchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Cchase of Gypsum and Coaloaloaloaloal 83.5583.5583.5583.5583.55 71.2271.2271.2271.2271.22Holcim Trading FZCO 83.55 71.22

(iii)(iii)(iii)(iii)(iii) PPPPPurururururchase of Fchase of Fchase of Fchase of Fchase of Finished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goods 48.7248.7248.7248.7248.72 23.5623.5623.5623.5623.56Ambuja Cements Limited 48.72 23.56

(iv)(iv)(iv)(iv)(iv) PPPPPurururururchase of Storchase of Storchase of Storchase of Storchase of Stores & Spares & Spares & Spares & Spares & Spareseseseses 0.600.600.600.600.60 -Ambuja Cements Limited 0.60 -

(v)(v)(v)(v)(v) Sale of FSale of FSale of FSale of FSale of Finished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goodsinished / Unfinished goods 24.7424.7424.7424.7424.74 78.8278.8278.8278.8278.82Ambuja Cements Limited 23.74 78.82Holcim Bangladesh Limited 1.00 -

(vi)(vi)(vi)(vi)(vi) Sale of StorSale of StorSale of StorSale of StorSale of Stores & Spares & Spares & Spares & Spares & Spareseseseses 0.280.280.280.280.28 -----Ambuja Cements Limited 0.28 -

(vii)(vii)(vii)(vii)(vii) RRRRRendering of Serendering of Serendering of Serendering of Serendering of Servicesvicesvicesvicesvices 4.384.384.384.384.38 7.737.737.737.737.73Ambuja Cements Limited 4.38 7.31National Cement Factory - 0.42

(viii)(viii)(viii)(viii)(viii) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses Pxpenses Pxpenses Pxpenses Pxpenses Paid / Paid / Paid / Paid / Paid / Paaaaayyyyyableableableableable 0.900.900.900.900.90 0.830.830.830.830.83Ambuja Cements Limited 0.14 0.02Holcim Trading FZCO 0.46 0.68Holcim Bangladesh Limited 0.30 -P T Holcim Indonesia Tbk - 0.13

(ix)(ix)(ix)(ix)(ix) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of E of E of E of E of Expenses Rxpenses Rxpenses Rxpenses Rxpenses Receiveceiveceiveceiveceived / Red / Red / Red / Red / Receiveceiveceiveceiveceivableableableableable 3.323.323.323.323.32 17.5917.5917.5917.5917.59Ambuja Cements Limited 3.06 15.78Holcim Ltd. - 0.98Others 0.26 0.83

(x)(x)(x)(x)(x) RRRRReceiving of Sereceiving of Sereceiving of Sereceiving of Sereceiving of Services (vices (vices (vices (vices (TTTTTrrrrraining / aining / aining / aining / aining / TTTTTechnical Know how /echnical Know how /echnical Know how /echnical Know how /echnical Know how /MarkMarkMarkMarkMarketetetetet sur sur sur sur survvvvveeeeey etcy etcy etcy etcy etc.).).).).) 36.4636.4636.4636.4636.46 52.5252.5252.5252.5252.52Holcim Group Support Limited 12.01 21.00Holcim Services (South Asia) Limited 23.00 30.12Others 1.45 1.40

(xi)(xi)(xi)(xi)(xi) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Assets Assets Assets Assets Assets 1.191.191.191.191.19 4.164.164.164.164.16National Cement Factory - 0.70Ambuja Cement Limited 1.02 3.27Others 0.17 0.19

(xii)(xii)(xii)(xii)(xii) Outstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in CurrOutstanding balance included in Currenenenenenttttt Liabilities Liabilities Liabilities Liabilities Liabilities 13.0413.0413.0413.0413.04 11.4711.4711.4711.4711.47Ambuja Cement Limited 2.43 2.60Holcim Group Support Limited 6.98 6.96Holcim Trading FZCO 0.69 0.68Holcim Services (South Asia) Limited 1.99 0.65Others 0.95 0.58

(E)(E)(E)(E)(E) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansactions rtions rtions rtions rtions relaelaelaelaelating to persons rting to persons rting to persons rting to persons rting to persons refefefefeferrerrerrerrerred to in item (B) aboed to in item (B) aboed to in item (B) aboed to in item (B) aboed to in item (B) abovvvvveeeee


RRRRRemuneremuneremuneremuneremuneraaaaationtiontiontiontion 4.404.404.404.404.40 3.413.413.413.413.41Mr. Sumit Banerjee 2.40 2.14#Mr. Hans J. Fuchs 2.00 1.22Others - 0.05

#Excluding Shares worth Rs. 0.07 Crore as a non-monetary perquisite allotted by Holcim Ltd., and the income-tax thereon thatwas borne by the Company, amounting to Rs. 0.025 Crore.

130

6.6.6.6.6. EEEEEarnings per Shararnings per Shararnings per Shararnings per Shararnings per Share - [EPe - [EPe - [EPe - [EPe - [EPS]S]S]S]S]


(I) Net Profit as per Profit and Loss Account ...................................................................................... 1,563.91 1,099.65

(II) Weighted average number of equity shares for Earnings Per Share computation

Shares for Basic Earnings Per Share .................................................................................................. 18,76,97,174 18,76,45,744

Add: Potential equity shares on exercise of option of ESOS ................................................. 4,11,011 2,83,742

Number of Shares for Diluted Earnings Per Share ..................................................................... 18,81,08,185 18,79,29,486

(III) Earnings Per Share (Weighted Average)

Basic ................................................................................................................................................ Rupees 83.32 58.60

Diluted ............................................................................................................................................ Rupees 83.14 58.51

7.7.7.7.7. EmploEmploEmploEmploEmployyyyyee Benefitsee Benefitsee Benefitsee Benefitsee Benefits

a) Defined Contribution Plans - Amount recognised and included in Schedule 16 "Contributions / Provisions to and for Provident andOther Funds" of Profit and Loss Account Rs. 7.94 Crore (Previous Year - Rs. 11.36 Crore).

b) Defined Benefit Plans - As per actuarial valuation on December 31, 2009


Funded Non Funded


IIIII EEEEExpense rxpense rxpense rxpense rxpense recececececognised in the Staognised in the Staognised in the Staognised in the Staognised in the Statementementementementementtttt of Pr of Pr of Pr of Pr of Profitofitofitofitofit & L & L & L & L & Lossossossossossfffffor the yor the yor the yor the yor the year ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009


2 Interest Cost 6.13 1.98 0.497.17 1.99 1.31



5 Net Actuarial (Gains) / Losses (19.29) (9.19) (4.25)22.55 12.32 3.48


7 Settlement / Curtailment (Gain) - - (2.18)- - (11.06)

8 Total expense (13.23) (5.37) (5.19)28.62 15.65 (5.94)

131

IIIIIIIIII NetNetNetNetNet Asset Asset Asset Asset Asset/(Liability) r/(Liability) r/(Liability) r/(Liability) r/(Liability) recececececognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetognised in the Balance Sheetas aas aas aas aas attttt December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

1 Present value of Defined Benefit Obligation (102.36) (31.75) (3.61)(124.30) (39.16) (10.18)


3 Funded status [Surplus / (Deficit)] (5.86) - -(39.40) - -


IIIIIIIIIIIIIII Change in ObligaChange in ObligaChange in ObligaChange in ObligaChange in Obligation during the tion during the tion during the tion during the tion during the YYYYYear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Present value of Defined Benefit Obligation at beginning of the year 124.30 39.16 10.1898.41 26.74 17.40

2 Current service cost 6.96 1.84 1.125.22 1.34 0.45

3 Interest Cost 6.13 1.98 0.497.17 1.99 1.31

4 Settlement / Curtailment (Gain) - - (2.18)(0.47) - (11.06)



7 Actuarial (Gains) / Losses (18.38) (9.19) (4.25)23.38 12.32 3.48

8 Benefit Payments (16.65) (2.04) (1.38)(9.41) (3.23) (1.28)

9 Present value of Defined Benefit Obligation at the end of the year 102.36 31.75 3.61124.30 39.16 10.18

IVIVIVIVIV Change in Assets during the Change in Assets during the Change in Assets during the Change in Assets during the Change in Assets during the YYYYYear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Plan assets at the beginning of the year 84.90 - -74.12 - -

2 Settlements - - -(0.47) - -


4 Contributions by Employer 3.87 - -4.23 - -

5 Actual benefits paid (0.21) - -(0.13) - -

6 Actuarial Gains / (Losses) 0.91 - -0.83 - -


8 Actual return on plan assets 7.94 - -7.15 - -


Funded Non Funded


132

VVVVV The major caThe major caThe major caThe major caThe major categories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a pertegories of plan assets as a percencencencencentage of total plantage of total plantage of total plantage of total plantage of total plan

Qualifying Insurance Policy 100%

VIVIVIVIVI EEEEEffffffffffecececececttttt of One per of One per of One per of One per of One percencencencencentage pointage pointage pointage pointage pointtttt change in the change in the change in the change in the change in the One perOne perOne perOne perOne percencencencencentage pointage pointage pointage pointage pointtttt One perOne perOne perOne perOne percencencencencentage pointage pointage pointage pointage pointttttassumed Medical Inflaassumed Medical Inflaassumed Medical Inflaassumed Medical Inflaassumed Medical Inflation rtion rtion rtion rtion raaaaatetetetete incrincrincrincrincrease in Medicalease in Medicalease in Medicalease in Medicalease in Medical decrdecrdecrdecrdecrease in Medicalease in Medicalease in Medicalease in Medicalease in Medical

InflaInflaInflaInflaInflation rtion rtion rtion rtion raaaaatetetetete InflaInflaInflaInflaInflation rtion rtion rtion rtion raaaaatetetetete

Increase / (Decrease) on aggregate service and interest cost ofPost Employment Medical Benefits 0.32 (0.28)

Increase / (Decrease) on Present value of Defined Benefit Obligationas at December 31, 2009 1.06 (0.92)

VIVIVIVIVIIIIII AcAcAcAcActuarial Assumptions:tuarial Assumptions:tuarial Assumptions:tuarial Assumptions:tuarial Assumptions: As aAs aAs aAs aAs attttt December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

1 Discount Rate 7.25% p.a.

2 Expected rate of return on plan assets 8% p.a.

3 Mortality pre-retirement Indian assured lives Mortality (1994-96)(modified) ultimate.

4 Mortality post-retirement Mortality for annuitants LIC (1996-98) ultimate.

5 Employee turnover rate 5% p.a.

6 Medical premium inflation 12% p.a. for 5 years and thereafter 8% p.a.

(Figures in italics pertains to previous year)

c) The Guidance issued by the Accounting Standard Board (ASB) on implementing AS-15, Employee Benefits (revised 2005) statesthat provident funds set up by employers, which requires interest shortfall to be met by the employer, needs to be treated asdefined benefit plan. The Fund does not have any existing deficit or Interest shortfall. In regard to any future obligation arisingdue to interest shortfall (i.e. government interest to be paid on provident fund scheme exceeds rate of interest earned oninvestment), pending the issuance of the Guidance Note from the Actuarial Society of India, the Company's actuary has expressedhis inability to reliably measure the same.

d) Basis used to determine expected rate of return on assets:

The expected return on plan assets is based on market expectation, at the beginning of the period, for returns over the entire lifeof the related obligation. The Gratuity Scheme is invested in Life Insurance Corporation (LIC) of India's Group Gratuity-cum-LifeAssurance cash accumulation policy and HDFC Standard Life's Group Unit Linked Plan - For Defined Benefit Scheme.

e) The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion andother relevant factors, such as supply and demand in the employment market.

f) During the year, pursuant to amendments in Post Employment Medical Benefits Scheme the Company has recognised curtailmentgain of Rs. 2.18 Crore (Previous Year - Rs. 11.06 Crore).

g) Contribution to Provident and Other funds is net of credit in gratuity funded scheme amounting to Rs. 12.64 Crore (Previous Yearcharge of Rs. 17.03 Crore) on account of change in discounting rate in valuation of present value of employee benefit liabilities.

h) Amounts for the current and previous four periods are as follows:

(i)(i)(i)(i)(i) GrGrGrGrGraaaaatuity (Ftuity (Ftuity (Ftuity (Ftuity (Funded)unded)unded)unded)unded) 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005


Plan assets 96.50 84.90 74.12 57.30 48.71

Surplus / (deficit) (5.86) (39.40) (24.29) (29.01) (26.11)

Experience adjustments on plan assets (0.91) (0.83) 0.65 N.A. N.A.

Experience adjustments on plan liabilities (5.74) 6.35 9.67 9.03 (6.19)

(ii)(ii)(ii)(ii)(ii) GrGrGrGrGraaaaatuity (Non funded)tuity (Non funded)tuity (Non funded)tuity (Non funded)tuity (Non funded) 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005



Surplus / (deficit) (31.75) (39.16) (26.74) (31.07) (28.44)


Experience adjustments on plan liabilities (3.83) 4.52 (6.96) (0.31) (0.70)

133

(iii)(iii)(iii)(iii)(iii) PPPPPostostostostost Emplo Emplo Emplo Emplo Employmenymenymenymenymenttttt Medical Benefits Medical Benefits Medical Benefits Medical Benefits Medical Benefits 20092009200920092009 20082008200820082008 20072007200720072007 20062006200620062006 20052005200520052005



Surplus / (deficit) (3.61) (10.18) (17.40) (14.84) (13.37)


Experience adjustments on plan liabilities (2.96) (6.14) 2.33 3.04 (0.44)

8.8.8.8.8. OperOperOperOperOperaaaaating Lting Lting Lting Lting Leaseeaseeaseeaseease

a) Future Lease Rental payments


(i) Not later than one year ................................................................................................................ 28.94 48.87

(ii) Later than one year and not later than five years ........................................................... 53.72 59.69

(iii) Later than five years ...................................................................................................................... - 7.34

b) Lease payment recognised in the Profit & Loss Account Rs. 55.54 Crore (Previous Year - Rs. 94.69 Crore)

c) General description of the leasing arrangement:

(i) Leased Assets: Mining Rights, Grinding facility, Dumpers, Cranes and Tippers, Car, Locomotives, Office Premises, Computersand other related equipments.

(ii) Future lease rentals are determined on the basis of agreed terms.

(iii) At the expiry of the lease term, the Company has an option either to return the asset or extend the term by giving notice inwriting.

9.9.9.9.9. a) During the previous year, the Company subscribed to 9,99,50,000 equity shares for a total consideration of Rs. 99.95 Crore in itswholly owned subsidiary ACC Concrete Limited.

b) During the previous year, the company subscribed to 3,09,900 equity shares for a total consideration of Rs. 3.10 Crore in its whollyowned subsidiary Lucky Minmat Limited.

c) During the year, the Company subscribed to 100,000,000 1% Cumulative Redeemable Preference Share for a total consideration ofRs. 100 Crore (Previous Year - Rs. Nil) in its wholly owned subsidiary ACC Concrete Limited.

d) During the year, the Company subscribed to 4,90,000 equity shares for a total consideration of Rs. 4.90 Crore (Previous year Rs. Nil)in its wholly owned subsidiary ACC Mineral Resources Limited (Formerly Known as The Cement Marketing Co. of India Ltd.).

e) During the year, the Company has acquired 100% stake in National Limestone Company Pvt. Limited, a Company engaged inmining of limestone.

10.10.10.10.10. a) During the year, the Ministry of Coal allocated a coal block in the state of West Bengal to a consortium in which the Company is amember. The Company plans to carry out mining activities through a joint venture company.

b) During the year, the group has entered into four Joint Venture agreements with Madhya Pradesh State Mining CorporationLimited for mining of Coal in the state of Madhya Pradesh and Chattisgarh.

11.11.11.11.11. MoMoMoMoMovvvvvemenemenemenemenementtttt of pr of pr of pr of pr of prooooovision during the yvision during the yvision during the yvision during the yvision during the year as rear as rear as rear as rear as requirequirequirequirequired by Acced by Acced by Acced by Acced by Accounounounounounting Standarting Standarting Standarting Standarting Standard 29d 29d 29d 29d 29

Mines Restoration Expenditure


Opening provision ............................................................................................................................................... 6.986.986.986.986.98 6.206.206.206.206.20

Add: Provision during the year ..................................................................................................................... 3.72 1.41

Less: Utilisation during the year .................................................................................................................. (0.72) (0.63)

Closing provision ................................................................................................................................................. 9.989.989.989.989.98 6.986.986.986.986.98

134

12.12.12.12.12. a) Provision for current tax represents estimated tax charge based on the aggregate profits of the Company for the quarter endedMarch 31, 2009, and nine months ended December 31, 2009. Ultimately, the tax liability of the Company would be determined onthe basis of its results for the fiscal year ending March 31, 2010.

b) The Company has been recognising in the financial statements the deferred tax assets / liabilities, in accordance with AccountingStandard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. During the year, theCompany has charged the Profit and Loss Account with Deferred Tax Liability of Rs. 12.55 Crore (Previous Year - Rs. 3.71 Crore).

The position of Deferred Tax Assets and Liabilities is as follows:


DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Liabilitiesax Liabilitiesax Liabilitiesax Liabilitiesax Liabilities

Depreciation differences .................................................................................................................................. 505.82 476.94

505.82 476.94

DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Assetsax Assetsax Assetsax Assetsax Assets

Employee Benefit ................................................................................................................................................ 44.65 53.96

Effect of expenditure debited to Profit and Loss Account in current yearbut allowed for tax purposes in the following years ......................................................................... 71.16 53.09

Others ................................................................................................................................................................. 35.38 27.81

151.19 134.86

NetNetNetNetNet Def Def Def Def Deferrerrerrerrerred ed ed ed ed TTTTTax Liabilitiesax Liabilitiesax Liabilitiesax Liabilitiesax Liabilities ......................................................................................................................... (354.63)(354.63)(354.63)(354.63)(354.63) (342.08)(342.08)(342.08)(342.08)(342.08)

13.13.13.13.13. A) Contingent Liabilities Not Provided For

a) Indemnity, Guarantee/s given to Banks / Financial Institutions, Government Bodies and others Rs. 147.39 Crore (Previous Year- Rs. 157.67 Crore).

b) Sales Tax, Excise Duties & Other Dues Rs. 50.67 Crore (Previous Year - Rs. 88.83 Crore).

In respect of item (b) future cash outflows in respect of contingent liabilities are determinable only on receipt of judgmentspending at various forums / authorities.

c) The Company had filed petitions against the orders / notices of various authorities demanding Rs. 132.96 Crore (PreviousYear - Rs. 113.80 Crore) towards payment of additional Royalty on Limestone based on the ratio of 1.6 tonnes of Limestone to1 tonne of Cement produced at its factories in Madhya Pradesh and Chattisgarh and on cement produced vis a vis consumptionof limestone at its factory in Tamil Nadu. In a similar matter, the Company has received a demand notice amounting toRs. 40.18 Crore (Previous Year - Rs. Nil) for one of its plant in the state of Karnataka.

The Company holds the view that the payment of royalty on limestone is based on the actual quantity of limestone extractedfrom the mining area. The independent report obtained from the National Council of Building Materials supports theCompany's view. In view of the demand, being legally unsustainable, the Company does not expect any liability in thematter.

B) a) The Company was entitled to receive transport subsidy against actual expenditure on freight incurred in respect of its new 1MTPA plant at Gagal, which went into commercial production w.e.f. September 15, 1994 for a period of five years. Accordingly,the Company accrued the subsidy claim (including subsidy on clinker) aggregating Rs. 80.65 Crore (Previous year - Rs. 80.65Crore) for a year up to September 1999. As against this, the Company had received part disbursement and balance of Rs.46.35 Crore (Previous year - Rs. 46.35 Crore) is shown as receivable under "Sundry Debtors - Schedule 8". The Company hadreceived a demand notice from the Government of Himachal Pradesh asking for refund of Rs. 31.19 Crore during the earlieryear stating that 1 MTPA plant at Gagal is not a new unit but a case of expansion of an existing unit, thereby, not eligible forsubsidy under Transport Subsidy Scheme, 1971.

The High Court of Shimla had declared Gagal II as eligible for transport subsidy in its judgement dated August 19, 2003 andthe division bench of Himachal Pradesh High Court has also confirmed the same in its judgement dated April 10, 2008.However the Government has filed an appeal in the Supreme Court.

135

b) The Company had availed Sales Tax incentive with respect to its investment in Gagal II under the State Industrial Policy, 1991.The Company accrued Sales tax incentives aggregating to Rs. 56 Crore (Previous Year - Rs. 56 Crore). However, the Sales taxauthorities of the State, interalia, have stipulated that the incentive is admissible only for the incremental amount over thebase revenue. The Company is still pursuing the claim with the Government. The Company is hopeful of recovery of theamount paid under protest. The Company is also pursuing with its appeal filed before Appellate Authorities. However as ameasure of abundant caution a sum of Rs. 56 Crore (Previous Year - Rs. 56 Crore) has been provided by the Company in earlieryears.

c) Pursuant to incentives available under a state government policy in respect of one of its cement plants, the Company had inthe past accrued Rs. 15 Crore of capital subsidy and Rs. 29.44 Crore as sales-tax which is receivable from the concernedGovernment Authorities. However, despite Company's efforts, it has not realised any amounts to date. Considering thesefacts, management considers it prudent to record a provision for the amount of Rs. 29.44 Crore by charge to the Profit andLoss Account and the Capital Reserve account is adjusted to the extent of the capital subsidy.

14.14.14.14.14. Previous year other expenses of Schedule 16 include Donations paid of Rs. 1.00 Crore to Bhartiya Janata Party and Rs. 1.00 Crore to AllIndia Congress Committee.

15.15.15.15.15. a)a)a)a)a) PPPPParararararticulars of unhedged fticulars of unhedged fticulars of unhedged fticulars of unhedged fticulars of unhedged forororororeign curreign curreign curreign curreign currency eency eency eency eency exposurxposurxposurxposurxposure as ae as ae as ae as ae as attttt Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet da da da da datetetetete

Particulars Amount

Export Debtors Rs. Nil {Previous Year - Rs. 3.32 Crore (USD 0.07 Crore @ Closing rate of 1 USD = Rs. 49.72)}

Rs. 3.73 Crore (SR 0.30 Crore @ Closing rate of 1 SR = Rs. 12.50){Previous Year - Rs. 1.92 Crore (SR 0.14 Crore @ Closing rate of 1 SR = Rs. 13.25)}

Creditors Rs. 1.96 Crore (USD 0.04 Crore @ Closing rate of 1 USD = Rs. 46.76){Previous Year - Rs. 22.93 Crore (USD 0.46 Crore @ Closing rate of 1 USD = Rs. 49.72)}

Rs. 7.88 Crore (CHF 0.18 Crore @ Closing rate of 1 CHF = Rs. 45.05){Previous Year - Rs. 9.15 Crore (CHF 0.20 Crore @ Closing rate of 1 CHF = Rs. 47.10)}

Rs. Nil {Previous Year - Rs. 1.41 Crore (JPY 2.56 Crore @ Closing rate of 1 JPY = Rs. 0.55)}

Rs. 2.83 Crore (EUR 0.04 Crore @ Closing rate of 1 EUR = Rs. 67.02){Previous Year - Rs. 34.29 Crore (EUR 0.49 Crore @ Closing rate of 1 EUR = Rs. 70.09)}

Rs. Nil {Previous Year - Rs. 0.02 Crore (THB 0.01 Crore @ Closing rate of 1 THB = Rs. 1.45)}

b)b)b)b)b) The details of fThe details of fThe details of fThe details of fThe details of forororororwwwwwararararard cd cd cd cd cononononontrtrtrtrtracacacacacts outstanding ats outstanding ats outstanding ats outstanding ats outstanding attttt the y the y the y the y the year end arear end arear end arear end arear end are as fe as fe as fe as fe as followollowollowollowollowsssss

Currency Number of Contracts Buy Amount Purpose

EURO Import of Capital items

2009 1 88,42,500

2008 5 1,18,62,699

USD Import of Capital items

2009 2 66,00,000

2008 2 50,00,000

16.16.16.16.16. Sales include Sales Tax incentive of Rs. 60.51 Crore (Previous Year Rs. 156.90 Crore).

17.17.17.17.17. Deferred Payment Liability included in "Unsecured Loans - Schedule 4" comprises of Rs. 9.74 Crore (Previous Year - Rs. 11.36 Crore)payable to the Industrial Development Corporation of Orissa Limited (IDCOL) on account of their dues payable by the erstwhile BargarhCement Ltd in eight equal annual installments without interest or penalty. The third installment was due for payment on December22, 2009. Pending conclusion of negotiation with IDCOL the installment is yet to be paid.

136

18.18.18.18.18. Details of Other OperDetails of Other OperDetails of Other OperDetails of Other OperDetails of Other Operaaaaating Incting Incting Incting Incting Income arome arome arome arome are as fe as fe as fe as fe as followollowollowollowollowsssss

Description 2009 2008Rs. Crore Rs. Crore

Sale of Stores, Materials, etc. ......................................................................................................................... 21.33 24.81

Provision no longer required written back .............................................................................................. 21.54 35.41

Sale of Surplus generated Power ................................................................................................................. 58.89 13.67

Miscellaneous Income ...................................................................................................................................... 63.64 92.63

TOTAL ... 165.40 166.52

19.19.19.19.19. Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the ParentCompany's Financial Statements.

20.20.20.20.20. The Consolidated results for the year ended December 31, 2009 are not comparable with the previous year, due to following :

(a) Investment in associate Alcon Cement Company Pvt. Ltd. w.e.f. April 1, 2008

(b) Investment in subsidiary National Limestone Co. Pvt. Limited w.e.f. April 20, 2009

(c) Divestment of subsidiaries ACC Machinery Co. Limited w.e.f. March 10, 2008

The effect of the operations of these entities on the results is not significant.

21.21.21.21.21. Previous year's figures have been regrouped / restated wherever necessary to make them comparable with current year's figures.






}

137

AAAAACCCCCC CC CC CC CC CONCONCONCONCONCRRRRRETETETETETE LIMITE LIMITE LIMITE LIMITE LIMITEDEDEDEDEDDIRECTORS’ REPORT

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFAAAAACCCCCC CC CC CC CC CONCONCONCONCONCRRRRRETETETETETE LIMITE LIMITE LIMITE LIMITE LIMITEDEDEDEDED

The Directors have pleasure in presenting the Third Annual Reportof the Company along with the audited Accounts for the year endedDecember 31, 2009.

1)1)1)1)1) FIFIFIFIFINANCNANCNANCNANCNANCIAL RIAL RIAL RIAL RIAL RESUESUESUESUESULLLLLTTTTTSSSSS

PARPARPARPARPARTTTTTICUICUICUICUICULARLARLARLARLARSSSSS FFFFFor theor theor theor theor the FFFFFor theor theor theor theor the

yyyyyear endedear endedear endedear endedear ended yyyyyear endedear endedear endedear endedear ended

December 31, 2009December 31, 2009December 31, 2009December 31, 2009December 31, 2009 December 31, 2008December 31, 2008December 31, 2008December 31, 2008December 31, 2008

Rs. LacRs. LacRs. LacRs. LacRs. Lac

Sale of products and services &

Other income ................................... 51,502 51,794

Loss before Depreciation,

Interest and Tax .............................. (2,587) (7,394)

Depreciation ..................................... 2,097 1,761

Interest ................................................ 5 446

Loss before Tax ................................ (4,689) (9,601)

Provision for Taxation

- Fringe Benefit Tax ........................ 1 79

Loss after Tax .................................... (4,690) (9,680)

Balance brought forward

from previous year ......................... (9,681) (1)

Balance carried to Balance Sheet (14,371) (9,681)

2)2)2)2)2) OPEROPEROPEROPEROPERAAAAATTTTTIONSIONSIONSIONSIONS

The Company has managed the challenges of a contractingRMX market to show substantial improvements in profitability.The RMX market was seriously affected in 2009 by the economicslowdown related to the real-estate sector demand in the mainmetros and cities where 90% of the Company’s assets arelocated. This resulted in the Company putting on hold itsexpansion plans and placing focus on consolidation of theexisting business whilst continuing to grow volumes from thecurrent asset base as well as from dedicated on site projectsolutions.

The numbers of available operating plants increased to 44 from38 in 2008 as committed capital projects were completed anddedicated site and collaboration opportunities were realised.

In this contracting market, the Sales volumes in 2009 increasedby 6.5% with turnover decreasing marginally at Rs. 513 crorefrom Rs. 515 crore in the previous year due to market pressureon selling prices. Raw material prices also increased in 2009but these were more than compensated by better designoptimisation resulting in an overall reduction in the rawmaterial costs.

EBITDA losses within the Company were reduced by 65% fromRs. 74 crore in 2008 to Rs. 26 crore in 2009 through systematicmanagement of costs and productivity improvement.

The Company has continued to focus on organisationalcapability development and is well placed to add value andexpand in the future as the market regains momentum throughthe government infrastructure spending programme and arenewed confidence in the real estate sector.

3)3)3)3)3) CCCCCAPITAPITAPITAPITAPITALALALALAL

The Company has increased its paid up Share Capital fromRs. 100 crore to Rs. 200 crore by the issue and allotment of10,00,00,000, 1% Cumulative Redeemable Preference shares ofRs.10 each for cash at par to ACC Limited, the holding company.

4)4)4)4)4) FFFFFUUUUUTTTTTUUUUURRRRRE OUE OUE OUE OUE OUTTTTTLLLLLOOOOOOKOKOKOKOK

The outlook is more optimistic. The demand for RMX from thecommercial and residential segment is expected to pick up inQ2, 2010 as overall demand improvement will lead to areduction in the inventory of unsold residential and commercialpremises. In addition to this, residential construction from high-end apartments to affordable / low cost housing is beingannounced and expected to come on stream. In the first halfof 2010 demand in and around Delhi shall remain buoyant dueto the necessary completion of infrastructure projects and itsassociated works in time for the start of the CommonwealthGames in October 2010. The demand from infrastructure isexpected to continue to grow across the country during thenext three years as the Government’s improvement plans beginto be realised.

5)5)5)5)5) DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORSSSSS

Mr. Onne van der Weijde has resigned from the Board ofDirectors with effect from October 26, 2009. The Board hasplaced on record its warm appreciation of the valuable servicesrendered by him as Director of the Company.

The Board of Directors have appointed Mr. Ramit Budhraja asan Additional Director with effect from February 2, 2010. As anAdditional Director, Mr. Ramit Budhraja holds office upto thedate of the ensuing Annual General Meeting. Accordingly, theResolution pertaining to his appointment as a Director of theCompany is included in the Notice of the Annual GeneralMeeting.

In accordance with the provisions of the Companies Act, 1956,Mr. J. DattaGupta, retires by rotation and is eligible forreappointment.

6)6)6)6)6) AAAAAUUUUUDITDITDITDITDITORORORORORSSSSS

M/s. K.S. Aiyar & Co., Chartered Accountants who are theStatutory Auditors of the Company, hold office up to the dateof the ensuing Annual General Meeting and are eligible for re-appointment. As required under the provision of Section 224(IB)of the Companies Act, 1956, the Company has obtained writtenconfirmation from M/s. K. S. Aiyar & Co. that their appointment,if made, would be in conformity with the limits specified in thesaid section. The Members are requested to appointM/s. K.S.Aiyar & Co., Chartered Accountants as Auditors of theCompany for the year 2010 and authorise the Board of Directorsto determine their remuneration.

138

7)7)7)7)7) ENENENENENERERERERERGGGGGYYYYY, , , , , TTTTTECECECECECHHHHHNOLNOLNOLNOLNOLOOOOOGGGGGY ANY ANY ANY ANY AND FORD FORD FORD FORD FOREIGN EEIGN EEIGN EEIGN EEIGN EXXXXXCCCCCHANGEHANGEHANGEHANGEHANGE

EnerEnerEnerEnerEnergggggy Cy Cy Cy Cy Conseronseronseronseronservvvvvaaaaationtiontiontiontion

The Company is not required to disclose particulars relating toconservation of energy, as it is not a scheduled industry underSection 217 read with Rule 2 of Companies (Disclosure ofParticulars in the Report of Board of Directors) Rules, 1988.

The Company has set up various processes and procedures toensuring optimum energy utilization.

TTTTTechnologechnologechnologechnologechnology Absorption, Adaptay Absorption, Adaptay Absorption, Adaptay Absorption, Adaptay Absorption, Adaptation and Innotion and Innotion and Innotion and Innotion and Innovvvvvaaaaationtiontiontiontion

The Company has not acquired any technology for itsmanufacturing process. However, the technology adopted andapplied is the latest technology available in the Industry.

FFFFForororororeign Eeign Eeign Eeign Eeign Exxxxxchange Echange Echange Echange Echange Earnings and Outgoarnings and Outgoarnings and Outgoarnings and Outgoarnings and OutgoRs. Lac

Foreign exchange earned Nil

Foreign exchange outgo 827

8)8)8)8)8) PPPPPARARARARARTTTTTICUICUICUICUICULARLARLARLARLARS OF EMPLS OF EMPLS OF EMPLS OF EMPLS OF EMPLOOOOOYYYYYEESEESEESEESEES

Information in accordance with the provisions of Section217(2A) of the Companies Act, 1956 read with Companies(Particulars of Employees) Rules, 1975 as amended regardingemployees is given in Annexure A to the Directors’ Report.

9)9)9)9)9) DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORS RS RS RS RS RESPESPESPESPESPONSIONSIONSIONSIONSIBBBBBIIIIILITY SLITY SLITY SLITY SLITY STTTTTAAAAATTTTTEMENTEMENTEMENTEMENTEMENT

To the best of their knowledge and belief and according to theinformation and explanation obtained from them, yourDirectors make the following statement in terms of Section217(2AA) of the Companies Act, 1956

i) that in the preparation of the annual accounts for the yearended December 31, 2009, the applicable accountingstandards have been followed along with properexplanation relating to material departures, if any,

ii) that such accounting policies as mentioned in Note 1 ofthe Notes to Accounts have been selected and appliedconsistently and judgments and estimates have been madethat are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as atDecember 31, 2009 and of the loss of the Company for theyear ended on that date,

iii) that proper and sufficient care has been taken for themaintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventingand detecting fraud and irregularities,

iv) the annual accounts have been prepared on a goingconcern basis.

10)10)10)10)10) AUAUAUAUAUDIT CODIT CODIT CODIT CODIT COMMITTMMITTMMITTMMITTMMITTEEEEEEEEEE

In compliance with the provisions of Section 292A of theCompanies Act, 1956, an Audit Committee of the Board hasbeen constituted comprising of the following persons:-

Mr. Sunil K. Nayak (Chairman)Mr. Sumit BanerjeeMr. J. DattaGupta

During the year under review four Audit Committee Meetingswere held.

Consequent upon the appointment of Mr. Ramit Budhraja as aDirector of the Company, Mr. Budhraja has also been appointedas Member of the Audit Committee w.e.f. February 2, 2010.

11)11)11)11)11) AAAAACCCCCKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

The Directors wish to convey their appreciation to their bankers,customers and other business associates for the excellentassistance and co-operation received and to ACC Limited, theholding company, for its continued trust and support. TheDirectors also thank all the employees of the Company for theirvaluable service and support during the year.


Hans J. Fuchs Sunil K. NayakManaging Director Director

Registered Office:Cement House,121, Maharshi Karve Road,Mumbai 400 020.


139

Statement Pursuant to Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975 andforming part of Directors’ Report for the year ended December 31, 2009.

Sr . Name Designation Remuneration Qualification Date of Total Age in Last EmploymentNo. & Nature of Gross Rs. Commence- Experience Years

duties ment of (years)Employment

1 Banchhor Anil Regional Business Head- ** 5,666,384 B.E.(Civil) 1-Jan-08 25 48 ACC LimitedWest & Central

2 Chandar Ravi Regional Business Head- 3,918,044 B.E. 10-Oct-08 20 42 Larsen & Toubro LimitedNorth & East

3 Dr.Bhoon K S Head-Training & 3,831,813 B.E.,M.Tech.,PHD 21-Jan-08 37 62 Ashok LeylandDevelopment

4 Dr.Mishra Tanaya Chief People Officer 5,472,208 PHD, LL.B. 1-Oct-08 17 39 Shopper’s Stop Limited

5 D‘Costa Allwyn Chief Financial Officer ** 5,121,132 C.A. 1-Jan-08 26 48 ACC Limited

6 Fuchs Hans Managing Director 19,995,334 Certificate in PT Hocim IndonesiaManagement 19-May-08 26 44 TBK(HIL)

7 Kulkarni Anil Area Business Head ** 2,439,219 B.E.(Civil),PGD 1-Jan-08 13 39 ACC Limited

8 Kumar Sunil Head Maintenance 3,263,641 MBA 5-Nov-08 22 46 Lafarge India Pvt Ltd

9 Mani S Narayanan General Manager –Audit & ** 3,165,154 C.A. 1-Jan-08 33 58 ACC LimitedAsset Management

10 Majumdar P R * Regional Key Account ** 2,871,965 B.E. 1-Jan-08 27 48 ACC LimitedManager

11 Malhotra Sumit Regional Business Head-South 3,641,716 B.Tech, MBA 23-Jan-08 25 48 Demat Trading LLC

12 Rawat Ragesh * Head- Marketing & Innovation 405,171 B.E.(Civil), MBA 11-Nov-09 8 41 Nitco Limited

13 Roy Debatosh Head- Regional Key Account 2,828,513 B.E.(Civil) 1-Aug-08 18 43 Dutch MNC

14 Sohail Azhar Head Operations-Training 3,034,008 BME, MECH 3-Mar-08 21 44 Home Solutions RetailsIndia Ltd

15 Venugopal Madambath Area Business Head 2,692,887 M.Sc, PGDHRM 4-Jul-08 34 55 Dangote Group

16 Verma Ameya K Head- Procurement 3,142,070 MBA 28-Nov-08 16 40 Asian Paints

ANNEXURE ‘A’ TO DIRECTORS’ REPORT (Para 8)))))

Notes :-

( i ) Gross Remuneration shown above is subject to tax and comprises salary, allowances , incentive, monetary value of perquisites,Company’s contribution to Provident Fund and Officer’s Superannuation Fund.

( ii ) In addition to the above remuneration, employees are entitled to Gratuity in accordance with the Company’s rules.

( iii ) All the employees have adequate experience to discharge the responsibility assigned to them.

( iv ) The nature of employment in all cases is contractual.

( v ) * indicate that the employee was in service only for part of the year.

( vi ) * * indicate that remuneration also includes encashment of balance accumulated privileged leave (upto December 2007) asa result of Company’s revised policy restricting its encashment beyond December 31, 2009, in case of continuing employeestransferred from ACC Limited.


Hans J. Fuchs Sunil K. NayakManaging Director Director


140

AUDITORS’ REPORT

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OF AS OF AS OF AS OF AS OF ACCCCCC CC CC CC CC CONCONCONCONCONCRRRRRETETETETETE LIMITE LIMITE LIMITE LIMITE LIMITEDEDEDEDED

1. We have audited the attached Balance Sheet of ACC CONCRETELIMITED, as at December 31, 2009, and also the Profit and LossAccount and the Cash Flow Statement for the year ended onthat date, annexed thereto. These financial statements are theresponsibility of the Company’s management. Our responsibilityis to express an opinion on these financial statements basedon our audit.

2. We conducted our audit in accordance with auditing standardsgenerally accepted in India. Those Standards require that weplan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of materialmisstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in thefinancial statements. An audit also includes assessing theaccounting principles used and significant estimates made bymanagement, as well as evaluating the overall financialstatement presentation. We believe that our audit provides areasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003(as amended) issued by the Central Government of India interms of sub-section (4A) of Section 227 of the Companies Act,1956, we enclose in the annexure a statement on the mattersspecified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to inparagraph 3 above, we report that:

a) we have obtained all the information and explanations,which to the best of our knowledge and belief werenecessary for the purposes of our audit;

b) in our opinion, proper books of account as required by lawhave been kept by the Company, so far as appears fromour examination of the books;

c) the Balance Sheet, Profit and Loss Account and Cash FlowStatement dealt with by this report are in agreement withthe books of account;

d) in our opinion, the Balance Sheet, Profit and Loss Accountand Cash Flow Statement dealt with by this report complywith the Accounting Standards referred to in sub-section(3C) of Section 211 of the Companies Act, 1956;

e) on the basis of the written representations received fromthe directors, as on December 31, 2009, and taken onrecord by the Board of Directors, we report that none ofthe directors of the Company are disqualified as onDecember 31, 2009 from being appointed as a director, interms of clause (g) of sub-section (1) of Section 274 of theCompanies Act, 1956;

f) in our opinion and to the best of our information andaccording to the explanations given to us, the said accountsgive the information required by the Companies Act, 1956,in the manner so required and give a true and fair view inconformity with the accounting principles generallyaccepted in India:

i) in the case of the Balance Sheet, of the state of affairsof the Company as at December 31, 2009;

ii) in the case of the Profit and Loss Account, of the lossof the Company for the year ended on that date; and

iii) in the case of the Cash Flow Statement, of the cashflows for the year ended on that date.

For K. S. AIYAR & CO.Chartered Accountants

Raghuvir M. AiyarPlace: Mumbai PartnerDate: February 02, 2010 Membership No. 38128

ANANANANANNNNNNEEEEEXXXXXUUUUURRRRRE E E E E TTTTTO O O O O TTTTTHHHHHE AE AE AE AE AUUUUUDITDITDITDITDITORORORORORS’S’S’S’S’ R R R R REPEPEPEPEPORORORORORTTTTT(Referred to in paragraph 3 of our Report of even date)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation offixed assets.

(b) A substantial portion of the fixed assets has been physicallyverified by the management during the year and in ouropinion the frequency of verification is reasonable havingregard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on suchphysical verification.

(c) Fixed assets disposed off during the year were notsubstantial. According to the information and explanationsgiven to us, we are of the opinion that the disposal offixed assets has not affected the going concern status ofthe Company.

(ii) (a) The inventories have been physically verified during theyear by the management. In our opinion, the frequency ofverification is reasonable.

(b) The procedures of physical verification of inventoriesfollowed by the management are reasonable and adequatein relation to the size of the Company and the nature ofits business.

(c) In our opinion and according to the information andexplanations given to us, the Company is maintainingproper records of inventory. The discrepancies noticed onverification between the physical stocks and the bookrecords were not material and have been properly dealtwith in the books of account.

(iii) (a) As informed, the Company has not granted any loans,secured or unsecured to companies, firms or other partiescovered in the register maintained under Section 301 ofthe Companies Act, 1956. Accordingly, sub-clause (b), (c)and (d) are not applicable.

(b) As informed, the Company has not taken any loans, securedor unsecured from companies, firms or other partiescovered in the register maintained under Section 301 ofthe Companies Act, 1956. Accordingly, sub-clause (f) and(g) are not applicable.

(iv) In our opinion and according to the information andexplanations given to us, there is an adequate internalcontrol system commensurate with the size of theCompany and the nature of its business for the purchasesof inventory and fixed assets and for the sale of goods and

141

services. During the course of our audit, no major weaknesshas been noticed in the internal control system in respectof these areas, however additional strengthening ofinternal controls is recommended in area of purchases ofinventory.

(v) Based on the Audit procedures performed and accordingto the information and explanations given to us there areno transactions that need to be entered into the registermaintained in pursuance of section 301 of the companiesAct, 1956. Accordingly sub clause (b) is not applicable

(vi) The Company has not accepted any deposits from thepublic to which the provisions of section 58A, 58AA, orany other relevant provisions of the Companies Act, 1956and the Companies (Acceptance of Deposit) Rules 1975apply.

(vii) In our opinion, the Company has an internal audit systemcommensurate with the size and nature of its business.

(viii) We have been informed that the Company is not requiredto maintain cost records under clause (d) of sub-section(1) of section 209 of the Companies Act, 1956, which hasbeen relied upon.

(ix) (a) According to the records of the Company, Provident Fund,Investor Education and Protection Fund, Employees’ StateInsurance, Income tax, Sales tax, Wealth tax, Service tax,Custom duty, Excise duty, cess and other material statutorydues applicable to it have been generally regularlydeposited during the year with the appropriate authorities.

According to the information and explanations given tous, there are no undisputed dues in respect of providentfund, investor education and protection fund, employees’state insurance, income-tax, wealth-tax, service tax, sales-tax, customs duty, excise duty, cess and other statutorydues which were outstanding, at the year end for a periodof more than six months from the date they becamepayable.

(b) According to the records of the Company, Income tax, Salestax, Wealth tax, Service tax, Custom duty, Excise duty andcess which have not been deposited on account of anydispute, are as follows:

Rs. In Lac

Name of the Nature of Amount Period to Forum wherestatute dues which the the dispute is

amount pendingrelates

Karnataka VAT 14.04 2008 JointVAT Act Commissioner.

U.P VAT Act VAT 204.07 2009 JointCommissionerAppeals.

Entry Tax Entry Tax 49.20 2009 AllahabadHigh Court.

Royalty Royalty 12.97 2009 KarnatakaHigh Court.

(x) The Company has been registered for a period of less thanfive years hence clause (4) (x) of Companies (Auditor’sReport) Order, 2003 (as amended) is not applicable.

(xi) According to information and explanations given to us thecompany has not taken any money from any financialinstitution, bank or debenture holder, and hence clause(4) (xi) is not applicable to the company.

(xii) Based on our examination of the records and theinformation and explanations given to us, the Companyhas not granted any loans and advances on the basis ofsecurity by way of pledge of shares, debentures and othersecurities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore, the provisions ofclause 4 (xiii) of the Order are not applicable to theCompany.

(xiv) In our opinion, the Company is not dealing in or trading inshares, securities, debentures and other investments.Accordingly, the provisions of clause 4(xiv) of the Orderare not applicable to the Company.

(xv) According to the information and explanations given tous, the Company has not given guarantee for loans takenby others from bank or financial institutions.

(xvi) According to the information and explanations given tous, the Company has not raised any loans during theperiod.

(xvii) According to the information and explanations given tous and on an overall examination of the Balance Sheet ofthe Company, we report that funds raised on short-termbasis aggregating to Rs. 7556.56 lakhs have been partiallyutilised for financing the cash losses and partially for long-term investment in fixed assets.

(xviii) The Company has not made any preferential allotment ofshares to parties and companies covered in the registermaintained under Section 301 of the Companies Act, 1956.

(xix) The Company has not issued any debentures during theyear. Therefore the provisions of clause (xix) of the orderare not applicable to the company.

(xx) The Company has not raised any money by way of publicissue during the year. Therefore, the provision of clause(xx) of the order is not applicable to the Company.

(xxi) According to the information and explanations furnishedby the management, which have been relied upon by us,there were no frauds on or by the Company noticed orreported during the course of our audit except for instancesin the Delhi Area as detailed in Note 13 arising out offrauds by employees handling purchases which we areinformed are not likely to be material.


Raghuvir M. AiyarPlace: Mumbai PartnerDate: February 02, 2010 Membership No.: 38128

142

BALANCE SHEET AS AT DECEMBER 31, 2009

As at As atDecember 31, December 31,

2009 2008

Schedules Rs. Lac Rs. Lac Rs. Lac

SOUSOUSOUSOUSOURRRRRCCCCCES OF FES OF FES OF FES OF FES OF FUUUUUNNNNNDS :DS :DS :DS :DS :

SharSharSharSharShareholders’eholders’eholders’eholders’eholders’ F F F F Funds :unds :unds :unds :unds :

Share Capital ..................................................................................................................... 1 20,000.00 10,000.00Reserves and Surplus ..................................................................................................... 2 23.71 23.71

20,023.71 10,023.71LLLLLoan Foan Foan Foan Foan Funds :unds :unds :unds :unds :

Unsecured Loans ............................................................................................................. 3 6,800.00 11,400.00


APPLICAPPLICAPPLICAPPLICAPPLICAAAAATTTTTION OF FION OF FION OF FION OF FION OF FUUUUUNNNNNDS :DS :DS :DS :DS :FFFFFixixixixixed Assets :ed Assets :ed Assets :ed Assets :ed Assets : 4Gross Block ......................................................................................................................... 16,732.42 13,780.61Less: Accumulated Depreciation .............................................................................. 3,712.47 1,630.35

Net Block ............................................................................................................................. 13,019.95 12,150.26

Capital Work-in-Progress (including Capital Advance) ................................... 104.43 1,423.78

13,124.38 13,574.04CurrCurrCurrCurrCurrenenenenenttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans and Advoans and Advoans and Advoans and Advoans and Advances :ances :ances :ances :ances :Inventories .......................................................................................................................... 5 678.67 583.00Sundry Debtors ................................................................................................................ 6 7,328.12 6,088.91Cash and Bank Balances .............................................................................................. 7 435.90 387.14Other Current Assets ..................................................................................................... 8 124.25 121.12Loans and Advances ....................................................................................................... 9 1,544.79 1,785.57

10,111.73 8,965.74

LLLLLess : Curress : Curress : Curress : Curress : Currenenenenenttttt Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Prooooovisions :visions :visions :visions :visions :

Current Liabilities ............................................................................................................ 10 10,777.36 10,762.17Provisions ............................................................................................................................ 11 90.93 147.85

10,868.29 10,910.02

NetNetNetNetNet Curr Curr Curr Curr Currenenenenenttttt Assets Assets Assets Assets Assets ....................................................................................................... (756.56) (1,944.28)

Miscellaneous EMiscellaneous EMiscellaneous EMiscellaneous EMiscellaneous Expenditurxpenditurxpenditurxpenditurxpenditureeeee ..................................................................................... 12 84.54 112.72(to the extent not written off or adjusted)

PrPrPrPrProfitofitofitofitofit and L and L and L and L and Loss Accoss Accoss Accoss Accoss Accounounounounounttttt ............................................................................................. 14,371.35 9,681.23



The schedules referred to above and notes to accounts form an integral part of the Balance Sheet.

As per our report of even date For and on behalf of the Board of ACC Concrete Limited,

For K. S. AIYAR & CO. HANS J. FUCHS SUNIL K. NAYAKChartered Accountants Managing Director Director

RAGHUVIR M. AIYAR ALLWYN D’COSTA SHEKHAR MODIPartner Chief Financial Officer Company SecretaryMembership No. 38128


143

For the For theyear ended year ended

December 31, December 31,2009 2008

Schedules Rs. Lac Rs. Lac Rs. Lac

IIIIINCNCNCNCNCOOOOOME:ME:ME:ME:ME:

Sale of Products and Services (Net) ........................................................................ 51,274.85 51,453.24

Other Income .................................................................................................................... 13 227.45 340.96

51,502.3051,502.3051,502.3051,502.3051,502.30 51,794.2051,794.2051,794.2051,794.2051,794.20

EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE:E:E:E:E:

Manufacturing and Other Expenses ...................................................................... 14 54,089.43 59,188.51

Depreciation & Amortisation .................................................................................... 2,096.91 1,760.68

Interest ................................................................................................................................. 15 4.80 446.38

56,191.14 61,395.57

LLLLLoss befoss befoss befoss befoss befororororore e e e e TTTTTaxaxaxaxax ............................................................................................................... (4,688.84)(4,688.84)(4,688.84)(4,688.84)(4,688.84) (9,601.37)(9,601.37)(9,601.37)(9,601.37)(9,601.37)

PrPrPrPrProoooovision fvision fvision fvision fvision for or or or or TTTTTaxaxaxaxaxaaaaationtiontiontiontion

Fringe Benefit Tax ........................................................................................................... 1.28 78.71

1.28 78.71

LLLLLoss afoss afoss afoss afoss after ter ter ter ter TTTTTaxaxaxaxax ................................................................................................................... (4,690.12)(4,690.12)(4,690.12)(4,690.12)(4,690.12) (9,680.08)(9,680.08)(9,680.08)(9,680.08)(9,680.08)

Balance brought forward from previous year .................................................... (9,681.23) (1.15)

Balance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance Sheet ........................................................................ (14,371.35)(14,371.35)(14,371.35)(14,371.35)(14,371.35) (9,681.23)(9,681.23)(9,681.23)(9,681.23)(9,681.23)

Basic and Diluted Earnings per Share .................................................................... Rupees (4.72) (10.24)

Face value per Share ...................................................................................................... Rupees 10.00 10.00


PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDEDDECEMBER 31, 2009

The schedules referred to above and notes to accounts form an integral part of the Profit and Loss Account





144


SCHEDULES FORMING PART OF THEBALANCE SHEET

For the year For the yearended ended


Rs. Lac Rs. Lac

A. Cash flow from operating activities1 Net Loss before Tax ...................................... (4,688.84) (9,601.37)

Adjustments for :2 Depreciation .................................................... 2,096.91 1,760.683 Interest and Dividend Income ................. (11.47) (11.26)4 Interest Expense ............................................ 4.80 446.385 Stores / Inventory Write off ...................... 15.63 184.936 Loss on Sale / Discarded Fixed Assets

(Net) .................................................................... 48.52 937.317 Miscellaneous Expenditure written off 28.18 28.188 Profit on Sale of Investment .................... (1.17) (18.60)9 Provision for Retirement Benefits .......... (56.92) (32.46)10 Provision for Bad and Doubtful Debts 347.78 438.76

Operating profit before working capital changes (2,216.58) (5,867.45)Adjustments for :

11 Trade receivables ........................................... (1,586.99) (2,036.52)12 Inventories ........................................................ (111.30) (358.92)13 Assets Held for Disposal / Other current

assets .................................................................. (3.13) 133.8814 Other receivables .......................................... 240.78 (207.88)15 Trade payables ................................................ 15.19 6,356.34

Cash generated from operations ............................. (3,662.03) (1,980.55)16 Direct Taxes - (net) ....................................... (1.28) (78.71)

NetNetNetNetNet C C C C Cash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities ........ (3,663.31)(3,663.31)(3,663.31)(3,663.31)(3,663.31) (2,059.26)(2,059.26)(2,059.26)(2,059.26)(2,059.26)

B. Cash flow from investing activities17 Purchase of Fixed Assets ............................ (1,695.77) (8,386.48)18 Purchase of Investments ............................ (675.07) (14,784.78)19 Sale / Redemption of Investments ........ 676.24 14,803.3820 Purchases of RMX Business ...................... - (10,000.00)21 Interest and Dividend received ............... 11.47 11.26

NetNetNetNetNet cash used in in cash used in in cash used in in cash used in in cash used in invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities ................ (1,683.13)(1,683.13)(1,683.13)(1,683.13)(1,683.13) (18,356.62)(18,356.62)(18,356.62)(18,356.62)(18,356.62)

C. Cash flow from financing activities22 Interest paid .................................................... (4.80) (446.38)23 Proceeds from issue of Share Capital .. 10,000.00 9,995.0024 Repayment of Short term Borrowings

(Net) .................................................................... (4,600.00) -25 Proceeds from Short term Borrowings

(Net) .................................................................... - 11,235.00

NetNetNetNetNet cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing activitiestivitiestivitiestivitiestivities ............... 5,395.205,395.205,395.205,395.205,395.20 20,783.6220,783.6220,783.6220,783.6220,783.62

Net increase / (decrease) in cash and cashequivalents ........................................................................ 48.76 367.74

Cash and cash equivalents - Opening Balance 387.14 19.40- Closing Balance 435.90 387.14

Notes : 1 All figures in brackets are outflow.2 Previous year’s figures are regrouped / recasted wherever necessary.3 Cash and Cash Equivalents is Cash and Bank Balance as per Balance Sheet.





SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL As at As atDecember 31, December. 31,

2009 2008

Rs. Lac Rs. Lac Rs. Lac

AUTHORISED100,000,000 Equity Shares ofRs. 10 each .................................................... 10,000.00 20,000.00(Previous year 200,000,000Equity Shares of Rs. 10 each) ...............100,000,000 Preference Shares ofRs. 10 each .................................................... 10,000.00 -(Previous year Nil)

20,000.00 20,000.00

ISSUED, SUBSCRIBED & PAID UP100,000,000 Equity Shares ofRs. 10 each, fully paid .............................. 10,000.00 10,000.00(Previous year 100,000,000 EquityShares of Rs. 10 each, fully paid)

100,000,000 1% CumulativeRedeemable Preference Share ofRs. 10 each, fully paid (Refer Note - 8) .... 10,000.00 -(Previous year NIL)

(All the Shares are held byACC Limited, the Holding Companyand its nominees) 20,000.00 10,000.00

TOTAL ..... 20,000.00 10,000.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, ULE - 3, ULE - 3, ULE - 3, ULE - 3, UNSECUNSECUNSECUNSECUNSECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS As at As atDecember 31, December.31,

2009 2008

Rs. Lac Rs. Lac

Short Term Loan ........................................................................... 6,800.00 11,400.00(Inter Corporate Deposits from ACC Limited, theHolding Company)

TOTAL ..... 6,800.00 11,400.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2, RLE - 2, RLE - 2, RLE - 2, RLE - 2, RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS As at As atDecember 31, December. 31,

2009 2008

Rs. Lac Rs. Lac

Capital Reserve ............................................................................. 23.71 23.71{Refer Note-1(III)}

TOTAL ..... 23.71 23.71

145


S CS CS CS CS CHHHHHEDUEDUEDUEDUEDULE - 4, FIXED ALE - 4, FIXED ALE - 4, FIXED ALE - 4, FIXED ALE - 4, FIXED ASSETSSETSSETSSETSSETSSSSS(Rs. Lac)

G RG RG RG RG ROSS BOSS BOSS BOSS BOSS BLLLLLOOOOOCCCCCK AK AK AK AK AT CT CT CT CT CO SO SO SO SO STTTTT TTTTTOOOOOTTTTTAL DEPRAL DEPRAL DEPRAL DEPRAL DEPRE CE CE CE CE CI AI AI AI AI ATTTTTION / AION / AION / AION / AION / AMMMMMO RO RO RO RO RTTTTTI SI SI SI SI SAAAAATTTTTIONIONIONIONION NNNNNET BET BET BET BET BLLLLLOOOOOCCCCCKKKKK

As aAs aAs aAs aAs attttt Additions/Additions/Additions/Additions/Additions/ DeducDeducDeducDeducDeductions/tions/tions/tions/tions/ As aAs aAs aAs aAs attttt As aAs aAs aAs aAs attttt FFFFFor theor theor theor theor the O nO nO nO nO n UptoUptoUptoUptoUpto As aAs aAs aAs aAs attttt As aAs aAs aAs aAs atttttFIXED AFIXED AFIXED AFIXED AFIXED ASSETSSETSSETSSETSSETSSSSS 31-12-200831-12-200831-12-200831-12-200831-12-2008 AdjustmenAdjustmenAdjustmenAdjustmenAdjustment st st st st s AdjustmenAdjustmenAdjustmenAdjustmenAdjustment st st st st s 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200831-12-200831-12-200831-12-200831-12-2008 yyyyyear endedear endedear endedear endedear ended DisposalDisposalDisposalDisposalDisposal 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200831-12-200831-12-200831-12-200831-12-2008

31-12-200931-12-200931-12-200931-12-200931-12-2009

(a) (b) (c) (d) (e) (f) (g) (h) (i) ( j) (k)

1 Leasehold Land 300.06 - - 300.06 5.50 5.51 - 11.01 289.05 294.56

2 Buildings 3,931.46 942.65 35.93 4,838.18 502.62 761.80 6.05 1,258.37 3,579.81 3,428.84

3 Machinery and Plant 7,320.39 1,557.34 75.59 8,802.14 786.18 924.62 6.26 1,704.54 7,097.60 6,534.21

4 Furniture, Fixtures andEquipments 271.19 23.38 53.28 241.29 12.89 14.61 2.35 25.15 216.14 258.30

5 Motor Cars, Trucks, etc. 1,479.76 26.68 - 1,506.44 299.69 274.31 - 574.00 932.44 1,180.07(Transit Mixers)

6 Electric Installations 468.83 304.01 1.84 771.00 21.97 71.63 0.13 93.47 677.53 446.86

Sub Total 13,771.69 2,854.06 166.64 16,459.11 1,628.85 2,052.48 14.79 3,666.54 12,792.57 12,142.84

7 Intangible Asset 8.92 264.39 - 273.31 1.50 44.43 - 45.93 227.38 7.42

Sub Total 8.92 264.39 - 273.31 1.50 44.43 - 45.93 227.38 7.42

Total 13,780.61 3,118.45 166.64 16,732.42 1,630.35 2,096.91 14.79 3,712.47 13,019.95 12,150.26

Previous Year - 14,683.44 902.83 13,780.61 - 1,760.68 130.31 1,630.35 12,150.26 -

8 Capital work-in-Progressand Unallocated CapitalExpenditure {includingCapital advance Rs. 39.89Lac (Previous yearRs. 403.08 Lac)} 104.43 1,423.78

Note - Addition during previous year Rs. 14,683.44 Lac is inclusive of Rs. 6336.40 Lac on account of transfer from ACC Limited on 01-01-2008.

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7, CLE - 7, CLE - 7, CLE - 7, CLE - 7, CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANK BK BK BK BK BALANCALANCALANCALANCALANCESESESESES As at As atDecember 31, December 31,

2009 2008

Rs. Lac Rs. Lac

1. Cash on Hand ................................................................... 0.99 2.432. Balances With Scheduled Banks

In Current Account ....................................................... 259.86 384.66In Fixed Deposit (Against margin money) ......... 175.00 -In Fixed Deposit ............................................................ 0.05 0.05

TOTAL ..... 435.90 387.14

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 8, OLE - 8, OLE - 8, OLE - 8, OLE - 8, OTTTTTHHHHHER CUER CUER CUER CUER CURRRRRRRRRRENT AENT AENT AENT AENT ASSETSSETSSETSSETSSETSSSSS As at As atDecember 31, December 31,

2009 2008

Rs. Lac Rs. Lac

1. Accrued Interest .............................................................. 5.30 -2. Assets held for Disposal .............................................. 118.95 121.12

TOTAL ..... 124.25 121.12

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 9, LLE - 9, LLE - 9, LLE - 9, LLE - 9, LOOOOOANS ANANS ANANS ANANS ANANS AND ADD ADD ADD ADD ADVVVVVANCANCANCANCANCESESESESES As at As at(Unsecured, Considered Good, unless December 31, December 31,otherwise stated) 2009 2008


1. Balances With Government Authoritieson Current Accounts .................................... 289.75 241.17

2 Sundry Advances And Deposits, etc.(a) Advances Recoverable in cash or

in kind of for value to be receivedConsidered Good ................................... 526.66 544.24

(b) Advances and Deposits withRailways, Government Bodies andOthers Considered Good .................... 702.72 990.91

1,229.38 1,535.153 Advance payment against taxes ............. 25.66 9.25

TOTAL ..... 1,544.79 1,785.57

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 5, ILE - 5, ILE - 5, ILE - 5, ILE - 5, INVENTNVENTNVENTNVENTNVENTORORORORORIIIIIESESESESESAs CAs CAs CAs CAs Cererererertified by the Managementified by the Managementified by the Managementified by the Managementified by the Managementtttt As at As at


Rs. Lac Rs. Lac

Raw Materials ...................................................... 648.94 566.98

Stores & Spare Parts and Fuels .................... 29.73 16.02

TOTAL ..... 678.67 583.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, SULE - 6, SULE - 6, SULE - 6, SULE - 6, SUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS As at As atDecember 31, December 31,

2009 2008


SUNDRY DEBTORS (UNSECURED)

(a) Over Six Months -

Considered Good ........................................ 63.51 128.09

Considered Doubtful ................................ 786.54 438.76

850.05 566.85

Less: Provision made for Bad andDoubtful Debts ................................................... 786.54 438.76

63.51 128.09

(b) Others - (Considered Good) .................. 7,264.61 5,960.82

TOTAL ..... 7,328.12 6,088.91

Note: Debts considered good includes in respect which the Company holds guaranteesfrom the bank Rs. 1,299.36 Lac (Previous year Rs. 768.76 Lac)

146

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 14, MLE - 14, MLE - 14, MLE - 14, MLE - 14, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIINGNGNGNGNG For the year For the yearANANANANAND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES ended ended


Rs. Lac Rs. Lac

MMMMMANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ANNG ANNG ANNG ANNG ANDDDDDDISDISDISDISDISTTTTTRRRRRIIIIIBUBUBUBUBUTTTTTION EION EION EION EION EXPENSESXPENSESXPENSESXPENSESXPENSESPurchase of Ready Mixed Concrete ....... 3,599.18 3,557.94Raw Materials Consumed. ......................... 34,306.99 35,110.38Stores & Spare parts Consumed ............ 111.91 128.92Labour Expenses Sub contracted ........... 741.42 1,389.52Outbound Freight Charges ........................ 4,209.62 4,576.54(Refer note - 9)Pumping and Conveying Charges .......... 1,254.17 1,350.87(Refer note - 9)Power and Fuel ............................................... 982.05 1,162.01Repairs to Building ....................................... 10.75 8.87Repairs to Machinery ................................... 234.24 239.42Repairs to Other Items ................................ 336.56 360.66

45,786.89 47,885.13PPPPPAAAAAYYYYYMENTMENTMENTMENTMENTS S S S S TTTTTO ANO ANO ANO ANO AND PRD PRD PRD PRD PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONSFOR EMPLFOR EMPLFOR EMPLFOR EMPLFOR EMPLOOOOOYYYYYEESEESEESEESEESSalaries, Wages, Dearness Allowanceand Bonus ......................................................... 2,796.82 2,655.47Contributions / Provisions to and forProvident and Other Funds ....................... 176.62 244.62Workmen and Staff Welfare Expenses 303.78 315.24

3,277.22 3,215.33ADADADADADMIMIMIMIMINNNNNISISISISISTTTTTRRRRRAAAAATTTTTIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLING ANNG ANNG ANNG ANNG ANDDDDDOOOOOTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSESRent ..................................................................... 1,571.54 1,368.43Rates and Taxes .............................................. 215.24 138.61Insurance ........................................................... 17.68 27.34Consultancy Services ................................... 911.48 2,076.28Advertisement ................................................ 0.85 24.77Miscellaneous Expenses written off ..... 28.18 28.18Provision for Bad and Doubtful Debts .... 347.78 438.76Net value of Discarded orDismantling or Scrapped Capital Assets .. 176.71 984.43Other Expenses .............................................. 1,755.86 3,001.25

5,025.32 8,088.05

TOTAL .. 54,089.43 59,188.51

SCHEDULES FORMING PART OF THEBALANCE SHEETSCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 10, CULE - 10, CULE - 10, CULE - 10, CULE - 10, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES As at As at


Rs. Lac Rs. Lac

Sundry CreditorsPayable to the Holding Company ............... 305.96 1,007.69Other Sundry Creditors .................................... 10,091.20 9,463.29

Sundry Deposits .................................................. 380.20 291.19

TOTAL ..... 10,777.36 10,762.17

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 11, PRLE - 11, PRLE - 11, PRLE - 11, PRLE - 11, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS As at As atDecember 31, December 31,

2009 2008

Rs. Lac Rs. Lac

Provision for Retirement Benefits ............... 90.93 147.85

TOTAL ..... 90.93 147.85

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, MISCLE - 12, MISCLE - 12, MISCLE - 12, MISCLE - 12, MISCELLANELLANELLANELLANELLANEOUS EEOUS EEOUS EEOUS EEOUS EXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRREEEEE As at As at(To the extent not written off or adjusted) December 31, December 31,

2009 2008

Rs. Lac Rs. Lac

Preliminary Expenses ........................................ 84.54 112.72

TOTAL ..... 84.54 112.72

SCHEDULES FORMING PART OF THE PROFITAND LOSS ACCOUNTSCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 13, OLE - 13, OLE - 13, OLE - 13, OLE - 13, OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME For the year For the year

ended endedDecember 31, December 31,

2009 2008


Other Operating Income ................................. 144.10 311.10

Other IncomeProfit on Sale of Investments ....................... 1.17 18.60Interest Income ................................................... 11.47 1.95Profit on Sale of Fixed Assets (Net) ........... 70.71 -Dividend from other Investments(Mutual Funds) .................................................... - 9.31

83.35 29.86

TOTAL .. 227.45 340.96

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 15, ILE - 15, ILE - 15, ILE - 15, ILE - 15, INTNTNTNTNTERERERERERESESESESESTTTTT For the year For the yearended ended


Rs. Lac Rs. Lac

On Short Term Borrowings ........................ - 444.07(Short term borrowings fromACC Limited, the Holding Company)

Others ................................................................. 4.80 2.31

TOTAL .. 4.80 446.38

147

Schedule - 16, NOSchedule - 16, NOSchedule - 16, NOSchedule - 16, NOSchedule - 16, NOTTTTTES ES ES ES ES TTTTTO AO AO AO AO ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIES ANES ANES ANES ANES AND NOD NOD NOD NOD NOTTTTTES FORMIES FORMIES FORMIES FORMIES FORMING PNG PNG PNG PNG PARARARARART OF T OF T OF T OF T OF TTTTTHHHHHEEEEEAAAAACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTS FOR S FOR S FOR S FOR S FOR TTTTTHHHHHE E E E E YYYYYEEEEEAR ENAR ENAR ENAR ENAR ENDED ON DECDED ON DECDED ON DECDED ON DECDED ON DECEMBEMBEMBEMBEMBER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009

1.1.1.1.1. (I)(I)(I)(I)(I) Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontion

(i) The financial statements of the Company are prepared underthe historical cost convention on accrual basis of accounting,and in accordance with the mandatory accounting standardsissued by the Institute of Chartered Accountants of India andreferred to in Section 211(3C) of the Companies Act, 1956 andgenerally accepted accounting principles in India.

(ii) Financial statements are based on historical cost and areprepared on accrual basis, except where impairment is madeand revaluation is carried out.

(iii) Accounting policies have been consistently applied by theCompany.

(I(I(I(I(II)I)I)I)I) Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestes

The preparation of financial statements in conformity with generallyaccepted accounting principles requires management to makeestimates and assumptions that affect the reported amounts of assetsand liabilities and disclosure of contingent liabilities at the date of thefinancial statements and the results of operations during the reportingperiod end. Although these estimates are based upon management’sbest knowledge of current events and actions, actual results coulddiffer from these estimates.

(I(I(I(I(IIIIIII)I)I)I)I) During the previous year, the Company had acquired the Ready MixedConcrete business from ACC Limited under a Business TransferAgreement on a slump sale basis for Rs. 10,000 lac with effect fromJanuary 1, 2008. After adjusting the value of tangible fixed assetsacquired of Rs. 7,886 lac, the balance consideration is allocatedtowards various net current assets and capital reserve as detailed hereunder:-

PPPPParararararticularsticularsticularsticularsticulars AmounAmounAmounAmounAmountttttRs. LacRs. LacRs. LacRs. LacRs. Lac

Fixed Assets 7,885.55

Add Current Assets 6,723.69

Less Current Liabilities 4,585.53

NetNetNetNetNet Asset Asset Asset Asset Asset v v v v valuealuealuealuealue 10,023.7110,023.7110,023.7110,023.7110,023.71

Consideration paid 10,000.00

Capital reserve 23.71

(IV(IV(IV(IV(IV))))) SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIESESESESESA)A)A)A)A) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognition

Revenue is recognized to the extent that it is probable that theeconomic benefits will flow to the Company and the revenuecan be reliably measured.Sale of goodsSale of goodsSale of goodsSale of goodsSale of goods(i) Revenue is recognised when the significant risks and

rewards of ownership of the goods have passed to thebuyer.

(ii) Income from jobs and other services rendered is accountedfor as per the terms of contract.

InInInInInterterterterterestestestestest and Dividend Inc and Dividend Inc and Dividend Inc and Dividend Inc and Dividend IncomeomeomeomeomeInterest income is recognised on a time proportion basis takinginto account the amount outstanding and the rate applicable.Dividend income is recognized when the shareholders’ right toreceive dividend is established by the Balance Sheet Date.

B)B)B)B)B) AccAccAccAccAccounounounounounting of claimsting of claimsting of claimsting of claimsting of claimsi) Claims receivable are accounted at the time when such

income has been earned by the Company depending onthe certainty of receipts. Claims payable are accounted atthe time of acceptance.

(ii) Claims raised by Government Authorities regarding taxesand duties, which are disputed by the Company, areaccounted based on the merits of each claim.

C)C)C)C)C) FFFFFixixixixixed assetsed assetsed assetsed assetsed assets(i) Fixed assets are stated at cost of acquisition or construction

less accumulated depreciation, impairment losses.(ii) Depreciation

The useful life of transit mixers and pumps is estimated at

SCHEDULES FORMING PART OF THE BALANCE SHEET ANDPROFIT AND LOSS ACCOUNT

8 years and 6 years respectively. Buildings, civil cost andinstallations are estimated to have useful life of 10 years.These assets are depreciated over the useful life on straightline method on a pro-rata basis.

The above assets, if transferred from ACC Limited, underthe business purchase agreement, are depreciated over theremaining useful life considering the period for which ACCLimited has already used such assets.

Useful life of certain assets is tailored based upon thecommercial agreements and the carrying amount of suchassets is allocated over their useful life.

In case of Plant & Machinery and Electrical installation atthe Ready Mixed Concrete plants, depreciation has beenprovided on triple shift basis for the entire year even thoughthe plants have worked only double and single shifts atvarious times, based on assessment of estimated usefullife.

All other assets are depreciated on the straight line methodat the rates prescribed in Schedule XIV of the CompaniesAct, 1956, on a pro-rata basis.

(iii) Cost of leasehold land is amortised over the period of lease.

DDDDD))))) InInInInIntangiblestangiblestangiblestangiblestangibles

Software cost is amortised over a period of three years.

E)E)E)E)E) ImpairmenImpairmenImpairmenImpairmenImpairmenttttt

An impairment loss is charged to the Profit and Loss Accountwherever the carrying amount of an asset exceeds its estimatedrecoverable amount. Previously recognized impairment loss isfurther provided or reversed depending on changes incircumstances.

F)F)F)F)F) EEEEExpenditurxpenditurxpenditurxpenditurxpenditure during ce during ce during ce during ce during construconstruconstruconstruconstruction periodtion periodtion periodtion periodtion period

In case of new projects expenditure incurred, including trialproduction expenses net of revenue earned, prior tocommencement of commercial production are capitalised.

G)G)G)G)G) InInInInInvvvvvestmenestmenestmenestmenestmentststststs

Current investments are carried at the lower of cost or fair value.Long term investments are stated at cost. Provision fordiminution in the value of long term investments is made onlyif such a decline is other than temporary.

H)H)H)H)H) LLLLLeaseseaseseaseseaseseases

Lease payments under operating lease are recognised as anexpense in the Profit and Loss Account on a straight line basisover the lease term.

I)I)I)I)I) InInInInInvvvvvenenenenentoriestoriestoriestoriestories

Raw materials, fuel, stores and spares are valued at lower ofcost and net realizable value. However, materials and other itemsheld for use in the production of inventories are not writtendown below cost if the finished products in which they will beincorporated are expected to be sold at or above cost. Cost isdetermined on a weighted average basis.

Net realizable value is the estimated selling price in the ordinarycourse of business, less estimated costs of completion andestimated costs necessary to make the sale.

J)J)J)J)J) FFFFForororororeign curreign curreign curreign curreign currency trency trency trency trency translaanslaanslaanslaanslationtiontiontiontion

Foreign currency transactions are recorded at the rates ofexchange prevailing on the date of transactions. Foreign currencymonetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical costdenominated in a foreign currency are reported using theexchange rate at the date of the transaction. Exchangedifferences arising on the settlement of monetary items or onreporting Company’s monetary items at rates different fromthose at which they were initially recorded during the year, orreported in previous financial statements, are recognised asincome or as expenses in the year in which they arise.

K)K)K)K)K) EmploEmploEmploEmploEmployyyyyee benefitsee benefitsee benefitsee benefitsee benefits

(i) Defined Contribution Plan

Contribution to defined contribution plans are recognisedas expense in the Profit and Loss Account, as they areincurred.

148

(ii) Defined Benefit Plan

Company’s liabilities towards gratuity, additional gratuity,leave encashment, silver jubilee, long service awards, aredetermined using the projected unit credit method as atBalance Sheet date. Actuarial gains / losses are recognizedimmediately in the profit and loss account. Long termcompensated absences are provided for based on actuarialvaluation.

(iii) Long term employee benefit

Company’s liability towards silver jubilee and long serviceawards is determined using the Projected Unit CreditMethod at the Balance Sheet date.

L)L)L)L)L) IncIncIncIncIncome taxome taxome taxome taxome taxeseseseses

Tax expense comprises of current, deferred and fringe benefittax. Current income tax and fringe benefit tax is measured atthe amount expected to be paid to the tax authorities inaccordance with the Indian Income Tax Act. Deferred incometaxes reflects the impact of current year timing differencesbetween taxable income and accounting income for the year andreversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the taxlaws enacted or substantively enacted at the balance sheet date.Deferred tax assets are recognised only to the extent that thereis reasonable certainty that sufficient future taxable income willbe available against which such deferred tax assets can berealised. In situations where the Company has unabsorbeddepreciation or carry forward tax losses, all deferred tax assetsare recognised only if there is virtual certainty supported byconvincing evidence that they can be realised against futuretaxable profits. Deferred Tax Assets are reviewed at each BalanceSheet date.

M)M)M)M)M) CCCCCononononontingencies / Prtingencies / Prtingencies / Prtingencies / Prtingencies / Prooooovisionsvisionsvisionsvisionsvisions

A provision is recognised when an enterprise has a presentobligation as a result of past event; it is probable that an outflowof resources embodying economic benefit will be required tosettle the obligation, in respect of which a reliable estimate canbe made. Provisions are not discounted to its present value andare determined based on best estimate required to settle theobligation at the balance sheet date. These are reviewed at eachbalance sheet date and adjusted to reflect the current bestestimates. A contingent liability is disclosed, unless the possibilityof an outflow of resources embodying the economic benefit isremote.

2.2.2.2.2. SEGMENT RSEGMENT RSEGMENT RSEGMENT RSEGMENT REPEPEPEPEPORORORORORTTTTTIIIIINGNGNGNGNG

The Company is operating only in one significant business segment i.e. ReadyMixed Concrete; hence segment information as per Accounting Standard 17 isnot required to be disclosed. The Company is catering only to the need of thedomestic market; as such there is no reportable Geographical Segments.

3.3.3.3.3. MISCMISCMISCMISCMISCELLANELLANELLANELLANELLANEOUS EEOUS EEOUS EEOUS EEOUS EXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRREEEEE

Share issue expenses is being amortized over a period of 60 months from thecommencement of commercial operations.

4.4.4.4.4. RRRRRELAELAELAELAELATTTTTED PED PED PED PED PARARARARARTY DISCTY DISCTY DISCTY DISCTY DISCLLLLLOSUOSUOSUOSUOSURRRRREEEEE

(A)(A)(A)(A)(A) PPPPParararararticulars of Holding / Fticulars of Holding / Fticulars of Holding / Fticulars of Holding / Fticulars of Holding / Fellow Subsidiarellow Subsidiarellow Subsidiarellow Subsidiarellow Subsidiary / Associay / Associay / Associay / Associay / Associate / Prte / Prte / Prte / Prte / Promoter Gromoter Gromoter Gromoter Gromoter GroupoupoupoupoupCCCCCompaniesompaniesompaniesompaniesompanies

Name of RName of RName of RName of RName of Relaelaelaelaelated Pted Pted Pted Pted Pararararart yt yt yt yt y N aN aN aN aN aturturturturture of Re of Re of Re of Re of Relaelaelaelaelationshiptionshiptionshiptionshiptionship

ACC Limited Holding CompanyBulk Cement Corporation (India) Ltd. Fellow Subsidiary CompanyACC Mineral Resources Limited(Formerly The Cement MarketingCompany of India Limited) Fellow Subsidiary CompanyLucky Minmat Limited Fellow Subsidiary CompanyNational Limestone CompanyPrivate Limited Fellow Subsidiary Company from April 20, 2009ACC Machinary Company Limited Fellow Subsidiary Company upto March 10, 2008Alcon Cement Company Pvt. Ltd. Associate Company of Holding Company

from April 01, 2008Ambuja Cement India Private Limited Promoter Group Company of the Holding CompanyAmbuja Cements Limited Promoter Group Company of the Holding CompanyHolderind Investments Limited Promoter Group Company of the Holding CompanyHolcim (India) Private Limited Promoter Group Company of the Holding CompanyHolcim Service (Asia) Limited Promoter Group Company of the Holding Company

Holcim Bangladesh Limited Promoter Group Company of the Holding CompanyHolcim Group Support Limited Promoter Group Company of the Holding CompanyHolcim Singapore Limited Promoter Group Company of the Holding CompanyHolcim Trading FZCO Promoter Group Company of the Holding CompanyHolcim (Lanka) Ltd. Promoter Group Company of the Holding CompanyP T Holcim Indonesia Tbk Promoter Group Company of the Holding CompanyHolcim Services (South Asia) Limited Promoter Group Company of the Holding CompanyHolcim Foundation Promoter Group Entity of the Holding CompanyHolcim Ltd. Promoter Group Company of the Holding CompanySiam City Concrete Co. Limited Promoter Group Company of the Holding CompanySiam City Cement Company Limited Promoter Group Company of the Holding CompanyNational Cement Factory Promoter Group Company of the Holding Company



Mr. Hans J. Fuchs Managing Director from July 01, 2008

Mr. Sanjay Bahadur Managing Director up to June 30, 2008

(((((C)C)C)C)C) TTTTTrrrrransacansacansacansacansactions with Holding Ctions with Holding Ctions with Holding Ctions with Holding Ctions with Holding Companompanompanompanompanyyyyy

Particulars For the year For the yearended December ended December

31, 2009 31, 2008

Rs. Lac Rs. Lac

1 Purchase of Finished / Unfinished goods 7,271.42 13,823.182 Sale of Fixed Assets 5.53 -3 Reimbursement of Expenses / Cost of Material /

Stores Paid 235.30 225.254 Reimbursement of Expenses / Cost of Material /

Stores Received 84.71 878.625 Receiving of Services - Rent - 156.396 Investment in the Share Capital of the

Company Received 10,000.00 9,995.007 Business purchase during the year - 10,000.008 Interest on Inter Corporate Deposit paid

during the year - 444.079 Inter Corporate Deposits Received During the year 7800.00 11,835.0010 Inter Corporate Deposits Liquidated During the year 12,400.00 600.0011 Inter Corporate Deposits as at the end of the year 6,800.00 11,400.0012 Outstanding balance included in Current

Liabilities (Net) 305.96 1,007.69

(D(D(D(D(D))))) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansactions rtions rtions rtions rtions relaelaelaelaelating to Prting to Prting to Prting to Prting to Promoters Gromoters Gromoters Gromoters Gromoters Group Coup Coup Coup Coup Companiesompaniesompaniesompaniesompanies


31, 2009 31, 2008

Rs. Lac Rs. Lac

(i)( i)( i )( i )( i ) PPPPPurururururchase of Fchase of Fchase of Fchase of Fchase of Finished / Unfinished goods /inished / Unfinished goods /inished / Unfinished goods /inished / Unfinished goods /inished / Unfinished goods /StorStorStorStorStores and Spares and Spares and Spares and Spares and Spareseseseses 4,872.304,872.304,872.304,872.304,872.30 2,316.042,316.042,316.042,316.042,316.04Ambuja Cement Limited 4,872.30 2,316.04

(ii)( i i)( i i)( i i)( i i) RRRRReimbursemeneimbursemeneimbursemeneimbursemeneimbursementtttt of e of e of e of e of expenses paid / paxpenses paid / paxpenses paid / paxpenses paid / paxpenses paid / payyyyyableableableableable ----- 13 .3313.3313.3313.3313.33P T Holcim Indonesia Tbk - 13.33

(iii)(i i i)(i i i)(i i i)(i i i) TTTTTrrrrraining / aining / aining / aining / aining / TTTTTechnical Know how /echnical Know how /echnical Know how /echnical Know how /echnical Know how /ManagemenManagemenManagemenManagemenManagementtttt F F F F Fees etcees etcees etcees etcees etc. . . . . * 311.96311.96311.96311.96311.96 495.30495.30495.30495.30495.30Holcim Group Support Limited 24.78 103.30Holcim Services (South Asia) Limited 174.63 286.60Holcim Services (Asia) Limited 112.55 105.40

(iv)( iv)( iv)( iv)( iv) Outstanding balance included inOutstanding balance included inOutstanding balance included inOutstanding balance included inOutstanding balance included inCurrCurrCurrCurrCurre ne ne ne ne nttttt Liability Liability Liability Liability Liability 687.88687.88687.88687.88687.88 514.03514.03514.03514.03514.03

*included in Consultancy Services in Schedule 14

(E)(E)(E)(E)(E) Details of Details of Details of Details of Details of TTTTTrrrrransacansacansacansacansactions rtions rtions rtions rtions relaelaelaelaelating to persons rting to persons rting to persons rting to persons rting to persons refefefefeferrerrerrerrerred to in item (B) of aboed to in item (B) of aboed to in item (B) of aboed to in item (B) of aboed to in item (B) of abovvvvveeeee


31, 2009 31, 2008

Rs. Lac Rs. Lac

RemunerationMr. Hans J. Fuchs 199.95 122.35Mr. Sanjay Bahaduar - 4.50


149

5.5.5.5.5. EEEEEARARARARARNNNNNIIIIINGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARE - [EPE - [EPE - [EPE - [EPE - [EPS]S]S]S]S]


31, 2009 31, 2008

Profit / (Loss) after taxation as per Profit and Loss account(Rupees Lac) (4,690.12) (9,680.08)Less: Preference dividend on 1% Cumulative RedeemablePreference Share Capital (Rupees Lacs) 34.68 -Profit / (Loss) after dividend on preference share capital(Rupees Lac) (4,724.80) (9,680.08)Weighted average number of Equity shares outstanding 10,00,00,000 94,538,251Basic earnings per Share (Weighted Average) in Rupees(face value - Rs. 10 per share) (4.72) (10.24)(Basic and Diluted earning per share are the same)

6.6.6.6.6. MMMMMANAANAANAANAANAGERGERGERGERGERIAL RIAL RIAL RIAL RIAL REMEMEMEMEMUUUUUNNNNNERERERERERAAAAATTTTTIONIONIONIONIONManagerial remuneration (excluding contribution to gratuity fund, provision for leave encashment onretirement and other defined benefits since the same is provided on actuarial basis for the Company asa whole) paid / payable to Managing Director/s

For the year For the yearended December ended December

31, 2009 31, 2008

Rs. Lac Rs. Lac

Managing Directors

Salaries 114.00 74.98

Perquisites *69.39 *41.63

Contributions to Provident and

Superannuation Funds 16.56 10.24

TTTTTotalotalotalotalotal **199.95**199.95**199.95**199.95**199.95 **126.85**126.85**126.85**126.85**126.85

***** The perquisites are valued as per provisions on Income Tax Act, 1961

** Being in excess of the minimum remuneration payable in case of inadequacy of profits as perSchedule XIII of the Companies Act, 1956, the Company has applied to the Central Government onSeptember 5, 2008 and is awaiting approval.

7.7.7.7.7. EMPLEMPLEMPLEMPLEMPLOOOOOYYYYYEE BEE BEE BEE BEE BENENENENENEFITEFITEFITEFITEFIT

(a) Defined benefit plans / compensated absences – As per actuarial valuationon December 31, 2009.

Particulars Gratuity LeaveEncashment

Funded Non Funded


(I)(I)( I)( I)( I) EEEEExpenses rxpenses rxpenses rxpenses rxpenses recececececognizognizognizognizognized in the Staed in the Staed in the Staed in the Staed in the Statementementementementementttttof Prof Prof Prof Prof Profitofitofitofitofit & L & L & L & L & Loss foss foss foss foss for the yor the yor the yor the yor the year endedear endedear endedear endedear endedDecember 31, 2009December 31, 2009December 31, 2009December 31, 2009December 31, 2009


2 Interest Cost 7.19 1.10 5.405.95 1.34 4.41


4 Actuarial Losses / (gains) (19.54) - 39.3913.00 (3.48) (7.65)

5 Curtailment loss/ (gain) - - 6.70- - -

6 Total Expense * 16.99 1.94 63.9330.36 (1.50) 31.82

( I( I( I( I( II )I )I )I )I ) NetNetNetNetNet Asset Asset Asset Asset Asset / (Liability) r / (Liability) r / (Liability) r / (Liability) r / (Liability) recececececognizognizognizognizognized in theed in theed in theed in theed in theBalance SheetBalance SheetBalance SheetBalance SheetBalance Sheet as aas aas aas aas attttt December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009 December 31, 2009

1 Present value of Defined Benefit obligation (123.26) (14.39) (41.28)(106.05) (15.72) (79.90)


3 Funded status [Surplus / (Deficit)] (12.58) (14.39) (41.28)(30.36) (15.72) (79.90)


( I( I( I( I( IIIIII I )I )I )I )I ) Change in obligaChange in obligaChange in obligaChange in obligaChange in obligation during thetion during thetion during thetion during thetion during theyyyyyear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009ear ended December 31, 2009

1 Present value of Defined Benefit Obligationat the beginning of the year –(transferred from ACC Limited) 106.05 15.72 79.90

82.90 17.22 65.17


3 Interest cost 7.19 1.10 5.405.95 1.34 4.41

4 Settlement cost - - -- - -

5 Past Service cost - - -- - -

6 Employee contributions - - -- - -

7 Actuarial (Gains) / Losses - - 39.3913.00 (3.48) (7.65)

8 Curtailment loss / (gain) - - (6.70)- - -

9 Benefit Payments / Payable (25.11) (3.27) (102.55)(13.31) - (17.09)

10 Present value of Defined Benefit 123.26 14.39 41.28Obligation at the end of the year 106.05 15.72 79.90

( IV( IV( IV( IV( IV))))) Change in assets during the yChange in assets during the yChange in assets during the yChange in assets during the yChange in assets during the year endedear endedear endedear endedear ended

1 Plan Assets at the beginning of the year – 75.69 - -(Formalities to transfer the fund from 82.90 - -ACC Limited to the Company is in progress)

2 Settlements - - -- - -


4 Contributions by employer 30.36 - -- - -

5 Actual benefits paid 20.70 - -13.31 - -

6 Actuarial gains / (losses) 19.54 - -- - -


(((((VVVVV ))))) The major caThe major caThe major caThe major caThe major categories of plan assetstegories of plan assetstegories of plan assetstegories of plan assetstegories of plan assetsas a peras a peras a peras a peras a percencencencencentage of total plantage of total plantage of total plantage of total plantage of total planQualifQualifQualifQualifQualifying Insurying Insurying Insurying Insurying Insurance Pance Pance Pance Pance Policyolicyolicyolicyolicy 100% - -

(((((VI)VI)VI)VI)VI) AcAcAcAcActuarial assumptionstuarial assumptionstuarial assumptionstuarial assumptionstuarial assumptions As at December 31, 2009

1 Discount rate 7.4%

2 Expected rate of return on plan assets 8%

3 Mortality Indian Assured Lives Mortality(1994-96) Modified Ultimate

4 Turnover rate 19%

5 Disability 5% Allowance for disabilityis made in the mortality rates

(Figures in italics pertain to previous year)

(a) * (I) (6) of the above includes Rs. 0.29 Lac (Previous year Rs. 3.49 Lac) beingGratuity (Funded), Rs. 0.02 Lac (Previous year NIL) being Gratuity (Non-Funded) and Rs. 0.51 Lac (Previous year Rs. 4.25 Lac) being LeaveEncashment capitalized to the cost of Fixed Assets.

Amounts recognised as an expense / (income) and included in the Schedule14

- Under “Salaries, Wages, Dearness Allowance and Bonus” of Profit and LossAccount are Rs. 1.92 Lac {Previous year Rs. (1.50) Lac} for non fundedGratuity, Rs. 63.42 Lac (Previous year Rs. 27.57 Lac) for Leave Encashment,

- Under “Contributions / Provision to and for Provident and other Funds” of

Particulars Gratuity LeaveEncashment

Funded Non Funded


150

Profit and Loss Account is Rs. 16.70 Lac (Previous year Rs. 26.87 Lac) forGratuity (Funded).

(b) The estimates of future salary increases, considered in actuarial valuation,take account of inflation, seniority, promotion and other relevant factors,such as supply and demand in the employment market.

(c) Basis used to determine expected rate of return on assets

The expected rate of return on plan assets is based on market expectation,at the beginning of the period, for return over the entire life of the relatedobligation.

8.8.8.8.8. During the year the Company has issued 10,00,00,000 1% cumulativeredeemable preference shares of Rs. 10 each to the Holding Company for cashat par on August 27, 2009.

The Company has not made provision for dividend payable amounting to Rs.34.68 Lac during the year (Previous year NIL) towards 1% cumulativeredeemable preference shares in absence of profits for the year.

The Company has not created a Capital Redemption Reserve towardsredemption of the 1% Cumulative Redeemable Preference Shares, in theabsence of profits. The due date of redemption of the same is August 26,2012.

9.9.9.9.9. OPEROPEROPEROPEROPERAAAAATTTTTIIIIING LENG LENG LENG LENG LEAAAAASESESESESE

(a) Future Lease Rental payments

Particulars December 31, December 31,2009 2008

Rs. Lac Rs. Lac

(i) Not Later than one year .................................................... 943.73 3,076.88

(ii) Later than one year and not later than five years ..... 119.80 1,800.01

(iii) Later than five years ........................................................... Nil Nil

Variable charges in case of Transit Mixers and Pumps are not considered

(b) Outbound Freight Charge of Rs. 4,209.62 Lac (Previous year Rs. 4,576.54 Lac)include lease rent of Rs. 2,151.91 Lac (Previous year Rs. 2,531.67 Lac) andPumping and Conveying Charges of Rs. 1,254.17 Lac (Previous year Rs. 1,350.87Lac) include lease rent of Rs. 1,017.43 Lac (Previous year Rs. 1,026.16 Lac).- (ReferSchedule – 14)

(c) General description of leasing arrangement:

(i) Leased Assets: Office and other premises, Pumps and Transit Mixers etc.

(ii) Lease rentals are charged on the basis of agreed terms.

10.10.10.10.10. TTTTTAXAAXAAXAAXAAXATTTTTIONIONIONIONION

No provision for current tax (other than Fringe Benefit Tax) is made in view ofthe losses for the year. Ultimately the tax liability of the Company would bedetermined on the basis of its results for the fiscal year ending March 31,2010.

In view of carried forward losses, the Company has deferred tax assets;however, as a matter of prudence and in view of the absence of virtual certaintyof future taxable income, the same has not been recognized in the financialstatements.

11.11.11.11.11. Other expenses include Rs. 43.75 Lac (Previous year Rs. 454.25 Lac) towardssettlement and estimated retrenchment compensation for the contractor’sworkers the actual outcome of which is contingent in cases where there areongoing negotiations.

12.12.12.12.12. Aakash Manufacturing Company Limited has two Ready Mix Concrete plantin Goa with an annual turnover of Rs. 3,500 Lac. The Company has enteredinto Business collaboration agreement with Aakash Manufacturing CompanyLimited to market in Goa and nearby area. An “agreement to sell” has beenentered into between the Company and the selling shareholders of AakashManufacturing Company Limited, under which the Company has an optionto purchase 40% Equity stake in Aakash Manufacturing Company Limited, ata consideration of Rs. 720 Lac, on a mutually agreed dates which shall notbe later than January 31, 2012. The consideration amount will be increasedby the interest charge at 11% per annum and reduced by the dividend relatedto the selling shareholders declared by Aakash Manufacturing CompanyLimited during the period of signing of this agreement and exercise of thisoption.

13.13.13.13.13. Certain instances of unethical / fraudulent activity by employees in DelhiArea through collusion with third parties with respect to purchases of rawmaterials were noticed by the Management. However, investigations carriedout show that the impact of the same on the Financial Statements is notlikely to be material.

1414141414. CCCCCONTONTONTONTONTIIIIINGENT LIABNGENT LIABNGENT LIABNGENT LIABNGENT LIABIIIIILITLITLITLITLITIIIIIES NOES NOES NOES NOES NOT PRT PRT PRT PRT PROOOOOVIVIVIVIVIDED FORDED FORDED FORDED FORDED FOR

(a) Indemnity, Guarantees given to Banks / Financial Institutions, GovernmentBodies and others Rs. 795.47 Lac (Previous year Rs. 332.09 Lac).

(b) Letter of Credit opened with Banks / Financial Institutions Rs. 134.32 Lac(Previous year - Rs. 143.58 Lac) for procurement of Raw Materials.

(c) Sales tax, entry tax & other dues Rs. 343.58 lac (Previous year – Rs. 324.13Lac), in respect of this Company has issued Bank guarantee of Rs. 250.82Lac (Previous year NIL) which is included in item 1 above.

(d) Claims against the Company not admitted as debt – Royalty Rs. 12.98 Lac(Previous year – NIL), in respect of this Company has issued Bank guaranteeof Rs. 4.90 Lac (Previous year NIL) which is included in item 1 above.

1515151515. Estimated amount of contracts remaining to be executed on capital accountand not provided for (net of advances) Rs. 160.11 Lac. (Previous year Rs.1,154.22 Lac).

16.16.16.16.16. During the year the Company acquired and sold the following investments inMutual Funds.

Particulars Face No. of Units Purchase PriceValue Rs. Lac

Rs.

Birla Cash Plus-Institutional Premium Plan (Growth) 10 2,170,390.09 300.00

Birla Sun Life Liquid Plus-Institutional Growth 10 2,292,663.05 375.07

Total 675.07

17.17.17.17.17. The prThe prThe prThe prThe pre-opere-opere-opere-opere-operaaaaativtivtivtivtive ee ee ee ee expenses incurrxpenses incurrxpenses incurrxpenses incurrxpenses incurred and tred and tred and tred and tred and transfansfansfansfansferrerrerrerrerred to Ced to Ced to Ced to Ced to Capital wapital wapital wapital wapital work inork inork inork inork inprprprprprogrogrogrogrogress is as underess is as underess is as underess is as underess is as under


31, 2009 31, 2008

Rs. Lac Rs. Lac

Salary and Allowances 19.89 192.62

Contribution to Provident and other funds 1.38 22.81

Workmen and Staff Welfare Expenses 2.52 18.28

Rent 8.30 177.02

Insurance 0.99 2.41

Other Expenses 9.60 114.99

Total 42.68 528.13

18. P18. P18. P18. P18. Paaaaaymenymenymenymenymenttttt to Sta to Sta to Sta to Sta to Statutortutortutortutortutory Ay Ay Ay Ay Auditors uditors uditors uditors uditors (excluding service tax)Other Expenses includes payment to Statutory Auditors as given below:

For the year For the yearended December ended December

31, 2009 31, 2008

Rs. Lac Rs. Lac

Audit Fees 16.00 16.00

Tax Accounts Audit Fees 8.00 8.00

For other services (Limited Review etc.) 15.00 24.20

Expenses Reimbursed 4.98 2.59

TOTAL 43.98 50.79

19.19.19.19.19. In the absence of responses to confirmations, the dues on account of Micro,Small and Medium Enterprises, as defined in the Micro, Small, MediumEnterprises Development Act, 2006, to which the Company owes on accountof principal amount together with interest are not known and accordingly noadditional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises hasbeen determined to the extent such parties have been identified on the basis

151

of information available with the Company. This has been relied upon by theauditors.....

20.20.20.20.20. Particulars of un-hedged foreign currency exposure as at Balance Sheet date.PPPPParararararticulars Amounticulars Amounticulars Amounticulars Amounticulars AmountttttCrCrCrCrCreditorseditorseditorseditorseditors CCCCCHHHHHFFFFF Rs. 133.47 lac (CHF 2.95 Lac @ closing rate of 1 CHF = Rs.45.18)

{Previous year Rs. 215.45 Lac (CHF 4.57 Lac @ closing rate of 1CHF = Rs.47.10)}

USDUSDUSDUSDUSD Rs. 112.06 lac (USD 2.39 Lac @ closing rate of 1USD = Rs. 46.89){Previous year Rs. 100.65 Lac (USD 2.02 Lac @ closing rate of 1USD = Rs.49.72)}

222221.1.1.1.1. ADDITADDITADDITADDITADDITIONAL IIONAL IIONAL IIONAL IIONAL INNNNNFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO O O O O TTTTTHHHHHE PRE PRE PRE PRE PROOOOOVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PARARARARARAAAAAGRGRGRGRGRAPHAPHAPHAPHAPH3 & 4 OF P3 & 4 OF P3 & 4 OF P3 & 4 OF P3 & 4 OF PARARARARART IT IT IT IT II OF SCI OF SCI OF SCI OF SCI OF SCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHE CE CE CE CE COOOOOMPMPMPMPMPANANANANANIIIIIES AES AES AES AES ACTCTCTCTCT, 1956, 1956, 1956, 1956, 1956(A) Sales by class of goods (Net)

Unit For the year ended For the year endedDecember 31, 2009 December 31, 2008

Quantity Rs. Lac Quantity Rs. Lac

(i) Ready Mixed Concrete Lac Cubic Meters 15.06 46,594.05 14.92 46,680.79(ii) Job and Service Rendered Lac Cubic Meters 1.95 684.32 0.96 327.05

(iii) Pumping Services Rendered — 334.79 747.65(iv) Purchased Ready Mixed

Concrete Lac Cubic Meters 1.05 3,661.69 1.05 3,697.75

Total 18.06 51,274.85 16.93 51,453.24

(B) Details of raw materials consumed

Unit For the year ended For the year endedDecember 31,2009 December 31,2008


(i) Cement .................................... Lac Tons 4.74 18,849.64 4.69 19,090.26

(ii) Sand .......................................... Lac Tons 11.16 4,678.24 10.43 4,902.60

(iii) Aggregate ............................... Lac Tons 16.36 8,279.08 17.14 8,359.05

(iv) Others ...................................... — 2,500.03 2,758.47

Total 34,306.99 35,110.38

(C) Licensed and installed capacity, actual production and opening and closingStocks

*Installed / Rated Capacity Actual Productionper annum

Unit For the year For the yearAs at As at ended ended

December December December December31, 2009 31, 2008 31, 2009 31, 2008

Ready Mixed Lac CubicConcrete ........... Meters 56.83 53.16 17.01 15.88

Licensed Capacity per annum not indicated due to the abolition of IndustrialLicensees as per Notification No. 477 (E) dated July 25, 1991 issued under TheIndustries (Development and Regulation ) Act, 1951.

The Company is in the business of manufacturing Ready Mixed Concrete andtherefore there is no opening and closing stock of finished goods.

(D) Purchase of Ready Mixed Concrete

Unit For the year ended For the year endedDecember 31,2009 December 31,2008


Ready Mixed Concrete ..... Lac CubicMeters 1.05 3,599.18 1.05 3,557.94

(E) Value of Imports calculated on C.I.F. basis

For the year ended For the year endedDecember 31,2009 December 31,2008

Rs. Lac Rs. Lac

(i) Raw Material .............................................................. 667.69 731.17(ii) Capital Goods ............................................................ 4.16 121.25

Total 671.85 852.42

(F) Expenses incurred in foreign currency (on accrual basis)

For the year ended For the year endedDecember 31,2009 December 31,2008

Rs. Lac Rs. Lac

(i) Traveling Expenses ................................................ 6.02 36.40

(ii) Technical Know-how paid (net of taxes) ..... - 12.14

(iii) (Gain) / Loss on Exchange ................................. 7.13 33.42

(iv) Consultants’ Charges ........................................... 112.55 603.31

(v) Training, Seminar Expenses .............................. 29.21 90.87

Total 154.91 776.14

(G) Value of Imported and indigenous Raw materials, components and spareparts consumed

Materials Raw Materials Component & Raw Materials Component &Spare parts Spare parts

For the year For the year For the year For the yearended ended ended ended

December 31, 2009 December 31, 2009 December 31, 2008 December 31, 2008

Rs. Lac % Rs. Lac % Rs. Lac % Rs. Lac %

(i) Imported .............. 665.53 1.94 - - 643.72 1.83 - -(ii) Indigenous ........... 33,641.46 98.06 1,480.21 100.00 34,466.66 98.17 1,665.35 100.00

Total 34,306.99 100.00 1,480.21 100.00 35,110.38 100.00 1,665.35 100.00

22.22.22.22.22. Previous year’s figures have been regrouped / restated wherever necessary tomake them comparable with current year’s figures.





152



I.I.I.I.I. REGISREGISREGISREGISREGISTTTTTRRRRRAAAAATTTTTION DETION DETION DETION DETION DETAIAIAIAIAILLLLLSSSSS

Registration No. U51909MH2007PLU51909MH2007PLU51909MH2007PLU51909MH2007PLU51909MH2007PLC170646C170646C170646C170646C170646 State Code 1 1

Balance Sheet 3 1 1 2 2 0 0 9

Date Month Year

IIIIII.I.I.I.I. CAPITCAPITCAPITCAPITCAPITAL RAL RAL RAL RAL RAISED DUAISED DUAISED DUAISED DUAISED DURRRRRIIIIING NG NG NG NG TTTTTHHHHHE E E E E YYYYYEEEEEARARARARAR (Amoun (Amoun (Amoun (Amoun (Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))

Public Issue Rights Issue

N I L N I L

Bonus Issue Private Placement

N I L 1 0 0 0 0 0 0

IIIIIIIIIII.I.I.I.I. POSITPOSITPOSITPOSITPOSITION OF MOBION OF MOBION OF MOBION OF MOBION OF MOBLISLISLISLISLISAAAAATTTTTION ANION ANION ANION ANION AND DEPLD DEPLD DEPLD DEPLD DEPLOOOOOYYYYYMENT OF FUMENT OF FUMENT OF FUMENT OF FUMENT OF FUNNNNNDSDSDSDSDS

(Amoun(Amoun(Amoun(Amoun(Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))

Total Liabilities Total Assets

3 7 6 9 2 0 0 3 7 6 9 2 0 0

SourSourSourSourSource of Fce of Fce of Fce of Fce of Fundsundsundsundsunds

Paid-up Capital Reserves & Surplus

2 0 0 0 0 0 0 2 3 7 1

Secured Loans Unsecured Loans

N I L 6 8 0 0 0 0

ApplicaApplicaApplicaApplicaApplication of Ftion of Ftion of Ftion of Ftion of Fundsundsundsundsunds

Net Fixed Assets Investments

1 3 1 2 4 3 8 N I L

Net Current Assets Misc. Expenditure

( 7 5 6 5 6 ) 8 4 5 4

Accumulated Losses

1 4 3 7 1 3 5

IVIVIVIVIV..... PERPERPERPERPERFORMFORMFORMFORMFORMANCANCANCANCANCE OF COE OF COE OF COE OF COE OF COMPMPMPMPMPANANANANANYYYYY (Amoun (Amoun (Amoun (Amoun (Amounttttt in Rs. in Rs. in Rs. in Rs. in Rs. ThousandsThousandsThousandsThousandsThousands)))))

Revenue Expenditure

5 1 5 0 2 3 0 5 6 1 9 1 1 4

PrPrPrPrProfitofitofitofitofit / (-) L / (-) L / (-) L / (-) L / (-) Loss oss oss oss oss BBBBBefefefefefororororore e e e e TTTTTaxaxaxaxax PrPrPrPrProfitofitofitofitofit / (-) L / (-) L / (-) L / (-) L / (-) Loss oss oss oss oss AAAAAfffffter ter ter ter ter TTTTTaxaxaxaxax

----- 4 6 8 8 8 4 - 4 6 9 0 1 2

Earnings per Share (in Rs.) Dividend Rate %

( 4 . 7 2 ) N I L

VVVVV..... GENGENGENGENGENERERERERERIC NAIC NAIC NAIC NAIC NAME OF ME OF ME OF ME OF ME OF TTTTTHHHHHRRRRREE PREE PREE PREE PREE PRIIIIINCNCNCNCNCIIIIIPPPPPAL PRAL PRAL PRAL PRAL PRODUCTODUCTODUCTODUCTODUCTSSSSS/SER/SER/SER/SER/SERVICVICVICVICVICES OF ES OF ES OF ES OF ES OF TTTTTHHHHHE COE COE COE COE COMPMPMPMPMPANANANANANYYYYY(A(A(A(A(AS PER MS PER MS PER MS PER MS PER MONONONONONETETETETETARARARARARY Y Y Y Y TTTTTERMERMERMERMERMS)S)S)S)S)

Item Code No. (ITC Code) 3 8 2 4 . 2 0

Product Description R E A D Y M I X E D C O N C R E T E

153

MINERALS

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFAAAAACCCCCC MIC MIC MIC MIC MINNNNNERERERERERAL RAL RAL RAL RAL RESOUESOUESOUESOUESOURRRRRCCCCCES LIMITES LIMITES LIMITES LIMITES LIMITEDEDEDEDED

The Directors have pleasure in presenting the Eighty First AnnualReport, together with the Audited Financial Statements of theCompany for the year ended December 31, 2009.

(1)(1)(1)(1)(1) FFFFFinancial Rinancial Rinancial Rinancial Rinancial Resultsesultsesultsesultsesults

PPPPParararararticularsticularsticularsticularsticulars FFFFFor the yor the yor the yor the yor the yearearearearear FFFFFor the yor the yor the yor the yor the yearearearearearendedendedendedendedended endedendedendedendedended

December 31,December 31,December 31,December 31,December 31, December 31,December 31,December 31,December 31,December 31,20092009200920092009 20082008200820082008(Rs.)(Rs.)(Rs.)(Rs.)(Rs.) (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)

Sale of products and servicesand Other Income 465,669 291,413

Profit Before Depreciation,Interest and Tax 161,135 281,444

Profit Before Tax 161,135 281,444

Provision for Taxation — —

Profit After Tax 161,135 281,444

Balance brought forwardfrom previous year 410,097 128,653

Balance Carried toBalance Sheet 571,232 410,097

(2)(2)(2)(2)(2) Change of Name & ObjecChange of Name & ObjecChange of Name & ObjecChange of Name & ObjecChange of Name & Objecttttt Clause Clause Clause Clause Clause

During the year under review, the Company has changed itsname to ACC Mineral Resources Limited. The Company has alsochanged the “Object Clause” of the Memorandum and Articlesof Association to enable it to carry on mining related activities.

(3)(3)(3)(3)(3) OperOperOperOperOperaaaaationstionstionstionstions

The Company has entered into four Agreements with MadhyaPradesh State Mining Corporation Limited (MPSMC) fordevelopment and mining of four coal blocks allotted to MPSMCby the Government of India. To represent each coal blockseparately, following four Associate Companies have beenincorporated with the Registrar of Companies, Madhya Pradesh& Chhatisgarh:

1. MP AMRL (Semaria) Coal Company Limited to representSemaria-Piparia Coal Block, District-Umaria in the State ofMadhya Pradesh

2. MP AMRL (Bicharpur) Coal Company Limited to representBicharpur Coal Block, District-Shahdol in the State ofMadhya Pradesh

3. MP AMRL (Marki Barka) Coal Company Limited to representMarki Barka Coal Block, District-Singrauli in the State ofMadhya Pradesh

4. MP AMRL (Morga) Coal Company Limited to representMorga IV Coal Block, District-Korba in the State ofChhatisgarh

The Company shall hold 49% of shareholding of each of theseAssociate Companies whereas Madhya Pradesh State MiningCorporation Limited will have 51% shareholding in each of thefour Associate Companies as per the terms and conditions setout in their respective Agreements. Various regulatory clearancesare in process to develop the aforesaid mines.

Since the operation of the Company has not started and in theabsence of any trading activity, the other income of Rs. 4,65,669/-represents the dividend received on investment in mutual fundswhich is further reduced by administrative expenditure andamortization of miscellaneous expenditure incurred forincreasing the Authorised Share Capital of the Company.

(4)(4)(4)(4)(4) IIIIINCNCNCNCNCRRRRREEEEEAAAAASE ISE ISE ISE ISE IN PN PN PN PN PAIAIAIAIAID UD UD UD UD UP CP CP CP CP CAPITAPITAPITAPITAPITALALALALAL

The Company increased its paid up Share Capital during theyear from Rs. 5 Lacs to Rs. 495 Lacs by the further issue andallotment of 4,90,000 Equity Shares of Rs. 100 each for cash atpar to ACC Limited, the holding Company. The proceeds fromthe issue of Share Capital shall be used in development of mines.

(5)(5)(5)(5)(5) DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORSSSSS

Mr. A. Anjeneyan who was appointed as a Director of theCompany with effect from October 5, 2005, resigned from theBoard of Directors of the Company with effect from July 16,2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr A. Anjeneyan as a Director ofthe Company.

Mr. K. Ravindran who was appointed as a Director of theCompany with effect from January 22, 2007, resigned from theBoard of Directors of the Company with effect from July 16,2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr K. Ravindran as a Director ofthe Company.

The Board of Directors has appointed Mr. Sunil Nayak and Mr. T.N. Tiwari, as Additional Directors of the Company with effectfrom April 20, 2009 and Mr. Burjor D. Nariman as an AdditionalDirector of the Company with effect from January 27, 2010. AsAdditional Directors, Mr. Nayak, Mr. Tiwari and Mr. Nariman holdoffice till the date of the forthcoming Annual General Meeting.Accordingly their candidature for appointment is included atItems 4 to 6 of the Notice.

In accordance with the provisions of the Companies Act, 1956,Mr. Sumit Banerjee retires by rotation and is eligible forreappointment.

AAAAACCCCCC MIC MIC MIC MIC MINNNNNERERERERERAL RAL RAL RAL RAL RESOUESOUESOUESOUESOURRRRRCCCCCES LIMITES LIMITES LIMITES LIMITES LIMITEDEDEDEDEDDIRECTORS’ REPORT

154

MINERALS

(6)(6)(6)(6)(6) DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORS’S’S’S’S’ R R R R RESPESPESPESPESPONSIONSIONSIONSIONSIBBBBBIIIIILITY SLITY SLITY SLITY SLITY STTTTTAAAAATTTTTEMENTEMENTEMENTEMENTEMENT

To the best of their knowledge and belief and according to theinformation and explanation obtained by them, your Directorsmake the following statement in terms of section 217(2AA) ofthe Companies Act, 1956:

(i) that in the preparation of the Accounts for the year endedDecember 31, 2009, the applicable accounting standardshave been followed along with proper explanation relatingto material departures, if any,

(ii) that such accounting policies as mentioned in Note 1 ofthe Notes to Accounts have been selected and appliedconsistently and judgments and estimates have been madethat are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company as atDecember 31, 2009 and of the profit of the Company forthe year ended on that date,

(iii) that proper and sufficient care has been taken for themaintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventingand detecting fraud and other irregularities,

(iv) that the Accounts for the year ended December 31, 2009have been prepared on a ‘going concern’ basis.

(7)(7)(7)(7)(7) AAAAAUUUUUDITDITDITDITDITORORORORORSSSSS

M/s. K. S. Aiyar & Co., the existing Auditors have under Section224(IB) of the Companies Act, 1956 furnished the certificate oftheir eligibility for re-appointment. The Members are requestedto appoint them as Auditors of the Company for the year 2010on a remuneration to be decided by the Board of Directors.

(8)(8)(8)(8)(8) AAAAAUUUUUDIT CDIT CDIT CDIT CDIT COOOOOMMITTMMITTMMITTMMITTMMITTEEEEEEEEEE

The paid up Share Capital of the Company is less than RupeesFive crore and hence the Company is not required to constitutean Audit Committee under the provisions of Section 292A ofthe Companies Act, 1956.

(9)(9)(9)(9)(9) ENENENENENERERERERERGGGGGY CY CY CY CY CONSERONSERONSERONSERONSERVVVVVAAAAATTTTTION, ION, ION, ION, ION, TTTTTECECECECECHHHHHNOLNOLNOLNOLNOLOOOOOGGGGGY ABSORY ABSORY ABSORY ABSORY ABSORPPPPPTTTTTION ANION ANION ANION ANION ANDDDDDFORFORFORFORFOREIGN EEIGN EEIGN EEIGN EEIGN EXXXXXCCCCCHANGE EHANGE EHANGE EHANGE EHANGE EARARARARARNNNNNIIIIINGS ANNGS ANNGS ANNGS ANNGS AND OUD OUD OUD OUD OUTTTTTGOGOGOGOGO

(i)(i)(i)(i)(i) EnerEnerEnerEnerEnergggggy Cy Cy Cy Cy Conseronseronseronseronservvvvvaaaaation & tion & tion & tion & tion & TTTTTechnologechnologechnologechnologechnology Absorptiony Absorptiony Absorptiony Absorptiony Absorption

In absence of any manufacturing activity, the informationunder section 217(1)(e) of the Companies Act, 1956 readwith Rule 2 of Companies (Disclosure of Particulars in theReport of Board of Directors) Rules, 1988 is Nil.

(ii)(ii)(ii)(ii)(ii) FFFFForororororeign eeign eeign eeign eeign exxxxxchange and outgochange and outgochange and outgochange and outgochange and outgo

The Company has paid an advance of Rs. 21,54,514/- toM/s Norwest Corporation, USA towards preparation ofDetailed Project Report for Semaria-Piparia Coal Block.

(10)(10)(10)(10)(10) PPPPParararararticulars of Emploticulars of Emploticulars of Emploticulars of Emploticulars of Employyyyyeeseeseeseesees

The Company has not employed any individual whoseremuneration falls within the purview of the limits prescribedunder the provisions of Sec 217 (2A) of the Companies Act,1956, read with the Companies (Particulars of Employees) Rules,1975.

(11)(11)(11)(11)(11) ACACACACACKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

Your Directors take this opportunity to express their appreciationof the excellent co-operation received from the Madhya PradeshState Mining Corporation Limited and the Government ofMadhya Pradesh. Your Directors also acknowledge the unstintingassistance and support received from ACC Limited, its holdingCompany and all the employees for their valuable contributionduring the year.


Sumit BanerjeeChairman

Mumbai, January 27, 2010Registered Office:Cement House,121, Maharshi Karve Road,Mumbai 400 020

155

MINERALSAUDITORS’ REPORT

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OF AS OF AS OF AS OF AS OF ACCCCCC MIC MIC MIC MIC MINNNNNERERERERERAL RAL RAL RAL RAL RESOUESOUESOUESOUESOURRRRRCCCCCES LIMITES LIMITES LIMITES LIMITES LIMITEDEDEDEDED.....(f(f(f(f(formerly known as ‘The Cormerly known as ‘The Cormerly known as ‘The Cormerly known as ‘The Cormerly known as ‘The Cemenemenemenemenementtttt Mark Mark Mark Mark Marketing Ceting Ceting Ceting Ceting Companompanompanompanompany of Indiay of Indiay of Indiay of Indiay of IndiaLimited’)Limited’)Limited’)Limited’)Limited’)

We have audited the attached Balance Sheet of ACC MINERALRESOURCES LIMITED, as at December 31, 2009, and also the Profitand Loss Account and the Cash Flow Statement for the year endedDecember 31, 2009 annexed thereto. These financial statements arethe responsibility of the Company’s management. Our responsibilityis to express an opinion on these financial statements based on ouraudit.


2. As required by the Companies (Auditor’s Report) Order, 2003(as amended) (‘the Order’) issued by the Central Governmentof India in terms of sub-section (4A) of Section 227 of theCompanies Act, 1956, we enclose in the annexure a statementon the matters specified in paragraphs 4 and 5 of the said Order.






e) on the basis of the written representations received fromthe directors, as on December 31, 2009, and taken on recordby the Board of Directors, we report that none of thedirectors of the Company are disqualified as on December31, 2009 from being appointed as a director, in terms ofclause (g) of sub-section (1) of Section 274 of theCompanies Act, 1956;

f) in our opinion and to the best of our information andaccording to the explanations given to us, the said accountsgive the information required by the Companies Act, 1956,

in the manner so required and give a true and fair view inconformity with the accounting principles generallyaccepted in India:


ii) in the case of the Profit and Loss Account, of the profitof the Company for the year ended on that date; and



RAGHUVIR M. AIYARPartner

Membership No.: 38128

Place: MumbaiDate: January 27, 2010.

ANNEXURE TO THE AUDITORS’ REPORT(Referred to in paragraph 2 of our Report of even date on theAccounts for the year ended December 31, 2009 of ACC MINERALRESOURCES LIMITED)

(i) (ii) In absence of fixed assets, inventories and sales,and (iv) clauses 4 (i), (ii) and (iv) are not applicable for the

period.

(iii) (a) As informed, the Company has not granted any loans,secured or unsecured to companies, firms or otherparties covered in the register maintained under Section301 of the Companies Act, 1956. Accordingly, sub-clause(b), (c) and (d) are not applicable.

(b) As informed, the Company has not taken any loans,secured or unsecured from companies, firms or otherparties covered in the register maintained under Section301 of the Companies Act, 1956. Accordingly, sub-clause(f) and (g) are not applicable.

(v) (a) Based upon the audit procedures performed andaccording to the information and explanations given tous, there are no contracts or arrangements that need tobe entered into the register maintained in pursuanceof section 301 of the Companies Act, 1956. Accordingly,sub-clause (b) is not applicable.

(vi) The Company has not accepted any deposits from the publicand consequently the directives issued by Reserve Bank ofIndia, provision of section 58A, 58AA or any other relevantprovision of the Companies Act, 1956, and the Companies(Acceptance of Deposits) Rules, 1975 with regard to thedeposits accepted from the public are not applicable to theCompany.

(vii) The Company neither has a paid-up capital and reserves ex-ceeding Rs. 50 lakhs as at the commencement of the finan-

156

MINERALS

cial year, nor does it have an average annual turnover exceed-ing Rs. 5 crore for the period of three consecutive financialyears immediately preceding the financial year and therefore,the directions in respect of internal audit are not applicableto the Company.

(viii) The Company is not a manufacturing company and no costrecords have been prescribed under section 209(1)(d) of theCompanies Act, 1956.

(ix) (a) During the year, there were no employees in theemployment of the Company. Accordingly the ProvidentFund, Employees’ State Insurance are not applicable tothe Company. Further, based on our examination of therecords maintained during the year, the Company is notliable to make any payments towards Investor EducationProtection Fund, Sales tax, Wealth tax, Custom duty,Service tax, Excise duty and Cess. The Company has beendepositing Profession Tax and Income tax dues with theappropriate authority and there were no undisputedamounts payable thereof which are outstanding, as atDecember 31, 2009 for the period of more than sixmonths from the date they became payable.

(b) According to the records of the Company, there are nodues of Income tax, Sales tax, Wealth tax, Service tax,Custom duty, Excise duty and Cess which have not beendeposited on account of any dispute.

(x) The Company neither has accumulated losses at the end ofthe financial year nor are cash losses during the financial year,therefore the directions in this regard not applicable.

(xi) The Company has not taken any loans from financialinstitution and has not issued any debentures.

(xii) The Company has not granted any loans and advances on thebasis of security by way of pledge of shares, debentures andother securities.

(xiii) The Company is not a chit fund or a nidhi / mutual benefitfund and therefore the provisions pertaining to such class ofcompanies are not applicable.

(xvi) The Company is not dealing or trading in shares, securities,debentures and other investments.

(xv) The Company has not given guarantee for loans taken byothers from Banks or financial institutions.

(xvi) During the year the Company has not raised any term loan.

(xvii) According to the information and explanations given to usand on an overall examination of the Balance Sheet of theCompany, we report that no funds raised on short-term basishave been used for long-term investment.


(xix) According to the information and explanations given to us,no debentures were issued during the year.

(xx) The Company has not raised any money by way of public issueduring the period. Therefore, the provision of clause (xx) ofthe order is not applicable to the Company.

(xxi) According to the information and explanations furnished bythe management, which have been relied upon by us, therewere no frauds on or by the Company noticed or reportedduring the course of our audit.


RAGHUVIR M. AIYARPartner

Membership No.: 38128

Place: MumbaiDate: January 27, 2010

157

MINERALS

As at As at

December 31, December 31,

2009 2008

Schedules Rs. Rs. Rs.



Share Capital ............................................... 1 49,500,000.00 500,000.00

Reserves and Surplus ............................... 2 571,232.00 410,097.00

50,071,232.00 910,097.00

LLLLLoan Foan Foan Foan Foan Funds :unds :unds :unds :unds :

Unsecured Loans ....................................... 3 1,300,000.00 -

TTTTTOOOOOTTTTTAL FAL FAL FAL FAL FUUUUUNNNNND SD SD SD SD S ............................................................................................................................................................................... 51,371,232.0051,371,232.0051,371,232.0051,371,232.0051,371,232.00 910,097.00910,097.00910,097.00910,097.00910,097.00

APPLICAPPLICAPPLICAPPLICAPPLICAAAAATTTTTION OF FION OF FION OF FION OF FION OF FUUUUUNNNNNDS :DS :DS :DS :DS :

I nI nI nI nI nvvvvvestmenestmenestmenestmenestment st st st st s .............................................................................................................................................................................................. 4 43,251,888.00 -

CurrCurrCurrCurrCurre ne ne ne ne nttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans and Advoans and Advoans and Advoans and Advoans and Advances :ances :ances :ances :ances :

Cash and Bank Balances ........................ 5 201,281.00 922,578.00

Loans and Advances ................................. 6 15,717,080.00 9,294.00

15,918,361.00 931,872.00

LLLLLess : Curress : Curress : Curress : Curress : Curre ne ne ne ne nttttt Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Prooooovisions :visions :visions :visions :visions :

Current Liabilities ...................................... 7 9,079,983.00 12,275.00

Provisions ...................................................... 8 9,500.00 9,500.00

9,089,483.00 21,775.00

NetNetNetNetNet Curr Curr Curr Curr Curre ne ne ne ne nttttt Assets Assets Assets Assets Assets .............................. 6,828,878.00 910,097.00

Miscellaneous EMiscellaneous EMiscellaneous EMiscellaneous EMiscellaneous Expenditurxpenditurxpenditurxpenditurxpenditureeeee ........... 9 1,290,466.00 -

(to the extent not written

off or adjusted)

TTTTTOOOOOTTTTTAL AAL AAL AAL AAL ASSETSSETSSETSSETSSETS (Net)S (Net)S (Net)S (Net)S (Net) ............................. 51,371,232.0051,371,232.0051,371,232.0051,371,232.0051,371,232.00 910,097.00910,097.00910,097.00910,097.00910,097.00

Notes to AccNotes to AccNotes to AccNotes to AccNotes to Accounounounounountststststs ............................... 10

The schedules referred to above and notes to accounts form an integral part of the Balance Sheet

As per our report of even date For and on behalf of the Board of ACC Mineral Resources Limited,

For K. S. AIYAR & CO.Chartered Accountants SUMIT BANERJEE Chairman

SUNIL NAYAK DirectorDINESH KUMAR SONTHALIA Company Secretary

RAGHUVIR M. AIYARPartnerMembership No. 38128

Mumbai, January 27, 2010

BALANCE SHEET AS AT DECEMBER 31, 2009 PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED DECEMBER 31, 2009

For the For the

year ended year ended

December 31, December 31,

2009 2008


IIIIIN CN CN CN CN COOOOOM E :M E :M E :M E :M E :

Dividend Received ..................................... 465,669.00 20,142.00

Profit on Sale of Investment ................ - 271,271.00

465,669.00 291,413.00

EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUU RRRRRE :E :E :E :E :

Auditor’s Fee ................................................ 106,000.00 5,000.00

Rates & Taxes .............................................. - 1,700.00

General Charges ........................................ - 3,000.00

Bank Charges .............................................. - 269.00

Miscellaneous Expenditure written off 198,534.00 -

304,534.00 9,969.00

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTa xa xa xa xa x 161,135.00161,135.00161,135.00161,135.00161,135.00 281,444.00281,444.00281,444.00281,444.00281,444.00

PrPrPrPrProoooovision fvision fvision fvision fvision for or or or or TTTTTa xa xa xa xa xaaaaationtiontiontiontion

Current Tax ................................................... - -

PrPrPrPrProfitofitofitofitofit af af af af after ter ter ter ter TTTTTa xa xa xa xa x ....................................... 161,135.00161,135.00161,135.00161,135.00161,135.00 281,444.00281,444.00281,444.00281,444.00281,444.00

Balance brought forward from

Previous Year ............................................... 410,097.00 128,653.00

Balance CBalance CBalance CBalance CBalance Carried to Balance Sheetarried to Balance Sheetarried to Balance Sheetarried to Balance Sheetarried to Balance Sheet 571,232.00571,232.00571,232.00571,232.00571,232.00 410,097.00410,097.00410,097.00410,097.00410,097.00

Basic and Diluted Earnings per Share 0.90 56.29

Face value per Share ................................ 100.00 100.00

Notes to AccNotes to AccNotes to AccNotes to AccNotes to Accounounounounountststststs ............................... 10

The schedules referred to above and notes to accounts form an integral part of the Profit and LossAccount

As per our report of even date For and on behalf of the Board of ACC Mineral Resources Limited,





158

MINERALSCASH FLOW STATEMENT FOR THE YEAR ENDEDDECEMBER 31, 2009




Rs. Rs.

A. Cash flow from operating activities1 Net Profit before Tax ...................................... 161,135.00 281,444.00Adjustments for :2 Interest and Dividend Income .................... (465,669.00) (20,142.00)3 Profit on Sale of Investment ....................... - (271,271.00)

Operating profit before working capitalchanges (304,534.00) (9,969.00)

Adjustments for :4 Other receivables .............................................. (15,707,786.00) -5 Trade payables ................................................... 9,067,708.00 5,000.00

NetNetNetNetNet C C C C Cash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities (6,944,612.00)(6,944,612.00)(6,944,612.00)(6,944,612.00)(6,944,612.00) (4,969.00)(4,969.00)(4,969.00)(4,969.00)(4,969.00)

B. Cash flow from investing activities6 Purchase of Investments ............................... (43,251,888.00) -7 Sale/Redemption of Investments .............. - 836,714.008 Interest and Dividend received .................. 465,669.00 20,142.009 Miscellaneous Expenditure .......................... (1,290,466.00) -

NetNetNetNetNet cash used in in cash used in in cash used in in cash used in in cash used in invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities .............................. (44,076,685.00)(44,076,685.00)(44,076,685.00)(44,076,685.00)(44,076,685.00) 856,856.00856,856.00856,856.00856,856.00856,856.00

C. Cash flow from financing activities10 Proceeds from issue of Share Capital ... 49,000,000.00 -11 Proceeds from Short term Borrowings . 1,300,000.00 -

NetNetNetNetNet cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing ac cash used in financing activitiestivitiestivitiestivitiestivities .............................. 50,300,000.0050,300,000.0050,300,000.0050,300,000.0050,300,000.00 -----

Net increase/(decrease) in cash andcash equivalents ..................................................... (721,297.00) 851,887.00Cash and cash equivalents- Opening Balance .................................................. 922,578.00 70,691.00- Closing Balance .................................................... 201,281.00 922,578.00

Notes : 1 All figures in brackets are outflow2 Previous Period’s figures are regrouped / rearranged wherever necessary.3 Cash and Cash Equivalents is Cash and Bank Balance as per Balance

Sheet.

As per our report of even date For and on behalf of the Board ofACC Mineral Resources Limited,





SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

1. AAAAAUUUUUTTTTTHORHORHORHORHORISED -ISED -ISED -ISED -ISED -2,000,000 Equity Shares of Rs. 100 each(Previous Year 5,000 Equity Shares ofRs. 100 each) ............................................................ 200,000,000.00 500,000.00

2. ISSUISSUISSUISSUISSUEDEDEDEDED, SU, SU, SU, SU, SUBSCBSCBSCBSCBSCRRRRRIIIIIBBBBBED & PED & PED & PED & PED & PAIAIAIAIAID UD UD UD UD UP -P -P -P -P -495,000 Equity Shares of Rs. 100 each,fully paid(Previous Year 5,000 Equity Shares ofRs. 100 each, fully paid)(All the Shares are held by ACC Limited,the Holding Company and its nominees) ... 49,500,000.00 500,000.00

TOTAL ........................................................................... 49,500,000.00 500,000.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2, RLE - 2, RLE - 2, RLE - 2, RLE - 2, RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

Profit & Loss A/c ............................................................. 571,232.00 410,097.00

TOTAL ................................................................................... 571,232.00 410,097.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, ULE - 3, ULE - 3, ULE - 3, ULE - 3, UNSECUNSECUNSECUNSECUNSECURRRRRED LED LED LED LED LOOOOOANSANSANSANSANS As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

Short Term Loan 1,300,000.00 -(Inter-Corporate Deposits from ACC Limited,the Holding Company)

TOTAL ................................................................................... 1,300,000.00 -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 4, ILE - 4, ILE - 4, ILE - 4, ILE - 4, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

Quoted:Quoted:Quoted:Quoted:Quoted:Baroda Pioneer Liquid Fund ....................................... 43,251,888.00 -(Market Value @Rs. 10.0063 per unit for43,22,465.685 units aggregating to Rs. 4,32,51,888)

TOTAL ................................................................................... 43,251,888.00 -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 5, CLE - 5, CLE - 5, CLE - 5, CLE - 5, CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANK BK BK BK BK BALANCALANCALANCALANCALANCESESESESES As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

1. Cash on Hand .......................................................... 580.00 -2. Balances With Scheduled Banks

In Current Account ................................................ 200,701.00 922,578.00

TOTAL ........................................................................... 201,281.00 922,578.00

159

MINERALS

S CS CS CS CS CHHHHH E D UE D UE D UE D UE D ULE - 6, LLE - 6, LLE - 6, LLE - 6, LLE - 6, LOOOOOANS ANANS ANANS ANANS ANANS AND A DD A DD A DD A DD A DVVVVVA N CA N CA N CA N CA N CES -ES -ES -ES -ES - As at As at(Unsecured, Considered Good, unless December Decemberotherwise stated) 31, 2009 31, 2008

Rs. Rs. Rs.

1 Advances Recoverable in cashor in Kind or for value to bereceived Considered Good

(a) Advances to AssociateCompanies ........................... 13,230,798.00 -

(b) Advance to others ............ 2,477,782.00 -

15,708,580.00 -2 Advance Payment

Against Taxes

(a) Advance Tax ........................ 8,500.00 8,500.00

(b) Tax Deducted at source on fixed deposits ............. - 794.00

TOTAL ............................................. 15,717,080.00 9,294.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7, CULE - 7, CULE - 7, CULE - 7, CULE - 7, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

Sundry Creditors

Payable to the Holding Company ........................... 8,735,261.00 -

Other Sundry Creditors ................................................ 13,775.00 4,275

Other Liabilities ............................................................... 330,947.00 8,000

TOTAL ................................................................................... 9,079,983.00 12,275.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 8, PRLE - 8, PRLE - 8, PRLE - 8, PRLE - 8, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS As at As atDecember December

31, 2009 31, 2008

Rs. Rs.

Provision for Taxation ................................................... 9,500.00 9,500.00

TOTAL ................................................................................... 9,500.00 9,500.00

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 9, MISCLE - 9, MISCLE - 9, MISCLE - 9, MISCLE - 9, MISCELLANELLANELLANELLANELLANEOUS EEOUS EEOUS EEOUS EEOUS EXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRREEEEE As at As at(To the extent not written off or adjusted) December December

31, 2009 31, 2008

Rs. Rs.

Expenses incurred for increase inAuthorised Share Capital ............................................ 1,489,000 -

Less: Amortized during the year ............................. 198,534 -

TOTAL ................................................................................... 1,290,466.00 -


SCHEDULES FORMING PART OF THE BALANCESHEET AND PROFIT AND LOSS ACCOUNT

Schedule –10, NOSchedule –10, NOSchedule –10, NOSchedule –10, NOSchedule –10, NOTTTTTES ES ES ES ES TTTTTO AO AO AO AO ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIES ANES ANES ANES ANES AND NOD NOD NOD NOD NOTTTTTES FORMIES FORMIES FORMIES FORMIES FORMING PNG PNG PNG PNG PARARARARARTTTTTOF OF OF OF OF TTTTTHHHHHE AE AE AE AE ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTS FOR S FOR S FOR S FOR S FOR TTTTTHHHHHE E E E E YYYYYEEEEEAR ENAR ENAR ENAR ENAR ENDED ON DECDED ON DECDED ON DECDED ON DECDED ON DECEMBEMBEMBEMBEMBER 31,ER 31,ER 31,ER 31,ER 31,20092009200920092009

1.1.1.1.1. (I)(I)(I)(I)(I) Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontion

(i) The financial statements of the Company are preparedunder the historical cost convention on accrual basisof accounting, and in accordance with the mandatoryaccounting standards issued by the Institute ofChartered Accountants of India and referred to inSection 211(3C) of the Companies Act, 1956 andgenerally accepted accounting principles in India.

(ii) Financial statements are based on historical cost andare prepared on accrual basis, except whereimpairment is made and revaluation is carried out.

(iii) Accounting policies have been consistently applied bythe Company.

(I(I(I(I(II)I)I)I)I) Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestes

The preparation of financial statements in conformity withgenerally accepted accounting principles requiresmanagement to make estimates and assumptions thataffect the reported amounts of assets and liabilities anddisclosure of contingent liabilities at the date of thefinancial statements and the results of operations duringthe reporting period end. Although these estimates arebased upon management’s best knowledge of currentevents and actions, actual results could differ from theseestimates.

(I(I(I(I(IIIIIII)I)I)I)I) SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIESESESESES

A) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognition

DividendDividendDividendDividendDividend

Dividend income is recognised on actual receipt basis.

B) InInInInInvvvvvestmenestmenestmenestmenestmentststststs

Current investments are carried at the lower of costor fair market value. There is no long term investment.

C) FFFFForororororeign curreign curreign curreign curreign currency trency trency trency trency transacansacansacansacansactiontiontiontiontion

Foreign currency transactions are recorded at the ratesof exchange prevailing on the date of transactions.Foreign currency monetary items are reported usingthe closing rate. Non-monetary items which arecarried in terms of historical cost denominated in aforeign currency are reported using the exchange rateat the date of the transaction. Exchange differencesarising on the settlement of monetary items or onreporting company’s monetary items at rates differentfrom those at which they were initially recordedduring the year, or reported in previous financialstatements, are recognised as income or as expensesin the year in which they arise.

D) IncIncIncIncIncome taxome taxome taxome taxome taxeseseseses

Tax expense comprises of current and deferred tax.The deferred tax charge or credit is recognized usingcurrent tax rates. Where there is unabsorbeddepreciation or carry forward losses, deferred taxassets are recognized only if there is virtual certaintyof realization of assets.

160

MINERALS

Other deferred tax assets are recognized only to the extentthere is reasonable certainty of realization in future. Deferredtax assets / liabilities are reviewed as at each balance sheetdate.

2.2.2.2.2. MISCMISCMISCMISCMISCELLANELLANELLANELLANELLANEOUS EEOUS EEOUS EEOUS EEOUS EXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRREEEEE

Expenses incurred in connection with increase in AuthorisedShare capital amounting to Rs. 14,89,000/- is being amortizedover a period of five years commencing from year 2009.


No provision for current tax is made in view of the profitcomprising of dividend received which is exempt from incometax and ultimately the tax liability of the Company, if any, wouldbe determined on the basis of its results for the fiscal yearending March 31, 2010.


(A)(A)(A)(A)(A) PPPPParararararticulars of Holdingticulars of Holdingticulars of Holdingticulars of Holdingticulars of Holding/ Associa/ Associa/ Associa/ Associa/ Associate / Prte / Prte / Prte / Prte / Promoter Gromoter Gromoter Gromoter Gromoter GroupoupoupoupoupCCCCCompaniesompaniesompaniesompaniesompanies

Name of RName of RName of RName of RName of Relaelaelaelaelated Pted Pted Pted Pted Pararararartytytytyty N aN aN aN aN aturturturturture of Re of Re of Re of Re of Relaelaelaelaelationshiptionshiptionshiptionshiptionship

ACC Limited Holding Company

Bulk Cement Corporation (India) Ltd. Fellow Subsidiary Company

ACC Concrete Limited Fellow Subsidiary Company

Lucky Minmat Private Limited Fellow Subsidiary Company

National Limestone Company Fellow Subsidiary CompanyPvt. Limited

Alcon Cement Company Pvt. Ltd. Associate of the HoldingCompany

MP AMRL (Semaria) Coal Company Associate CompanyLimited

MP AMRL (Bicharpur) Coal Company Associate CompanyLimited

MP AMRL (Marki Barka) Coal Associate CompanyCompany Limited

MP AMRL (Morga) Coal Company Associate CompanyLimited

Ambuja Cement India Private Limited Promoter Group Company ofthe Holding Company

Ambuja Cements Limited Promoter Group Company ofthe Holding Company

Holderind Investments Limited Promoter Group Company ofthe Holding Company

Holcim (India) Private Limited Promoter Group Company ofthe Holding Company

Holcim Service (Asia) Limited Promoter Group Company ofthe Holding Company

Holcim (Bangladesh) Limited Promoter Group Company ofthe Holding Company

Holcim Group Support Limited Promoter Group Company ofthe Holding Company

Holcim Singapore Limited Promoter Group Company ofthe Holding Company

Holcim Trading FZCO Promoter Group Company ofthe Holding Company

Holcim (Lanka) Ltd. Promoter Group Company ofthe Holding Company

P T Holcim Indonesia Tbk Promoter Group Company ofthe Holding Company

Holcim Services (South Asia) Limited Promoter Group Company ofthe Holding Company

Holcim Foundation Promoter Group Entity ofthe Holding Company

Holcim Ltd. Promoter Group Company ofthe Holding Company

Siam City Concrete Co. Limited Promoter Group Company ofthe Holding Company

Siam City Cement Company Limited Promoter Group Company ofthe Holding Company

National Cement Factory Promoter Group Company ofthe Holding Company

(B)(B)(B)(B)(B) TTTTTrrrrransacansacansacansacansactions with Holding Ctions with Holding Ctions with Holding Ctions with Holding Ctions with Holding Companompanompanompanompanyyyyy


December 31,December 31,December 31,December 31,December 31, December 31,December 31,December 31,December 31,December 31,20092009200920092009 20082008200820082008

Rs.Rs.Rs.Rs.Rs. Rs. Rs. Rs. Rs. Rs.

1 Inter CorporateDeposits ReceivedDuring The Year 13,00,000 -

2 Inter CorporateDeposits as at theend of the Period 13,00,000 -

3 Advance forExpenses Received 1,00,00,000 -

4 Re-imbursement ofexpenses (Net) 12,64,739 -

5 Outstanding balanceincluded in CurrentLiabilities (Net) 87,35,261 3,000

5.5.5.5.5. EEEEEARARARARARNNNNNIIIIINGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARE - [EPE - [EPE - [EPE - [EPE - [EPS]S]S]S]S]




Profit / (Loss) after taxationas per Profit and Loss Account 1,61,135 2,81,444

Weighted average number ofEquity shares outstanding 1,78,178 5,000

Basic earnings per Share(Weighted Average) in Rupees(face value - Rs. 100 per share) 0.90 56.29

(There are no diluted equity shares and hence there is noworking for diluted earning per share)


161

MINERALS

6.6.6.6.6. During the year, the Company acquired and sold the following unitsof its investment in Baroda Pioneer Liquid Fund.

DescriptionDescriptionDescriptionDescriptionDescription FFFFFace ace ace ace ace VVVVValuealuealuealuealue NoNoNoNoNo. of Units. of Units. of Units. of Units. of Units AmounAmounAmounAmounAmounttttt (Rs.) (Rs.) (Rs.) (Rs.) (Rs.)

Redemption ofInvestment 10.0063 619609.646 62,00,000

7.7.7.7.7. Payment to Statutory Auditors:

PPPPPa ra ra ra ra rticularsticularsticularsticularsticulars FFFFFor the yor the yor the yor the yor the yearearearearear FFFFFor the yor the yor the yor the yor the yearearearearearendedendedendedendedended endedendedendedendedended



Audit Fees 50,000 5,000

For other services(Limited Review etc.) 56,000 -

Expenses Reimbursed - -

TTTTTOOOOOTTTTTALALALALAL 1,06,0001,06,0001,06,0001,06,0001,06,000 5,0005,0005,0005,0005,000

8.8.8.8.8. TTTTTrrrrransacansacansacansacansactions with Associations with Associations with Associations with Associations with Associate Cte Cte Cte Cte Companiesompaniesompaniesompaniesompanies

The company has entered into four agreements with MadhyaPradesh State Mining Corporation Limited (MPSMC) for developmentof four coal blocks allotted to MPSMC by Government of India. Torepresent each block separately, four associate companies have beenincorporated with Registrar of Companies, Madhya Pradesh and asper the respective agreements; the Company shall hold 49% ofshareholding of each of the associate companies. The Company hasincurred Rs. 1,32,30,798/- towards incorporation, pre-operative costand other administrative expenses of these associate companieswhich is shown as loans and advances to these companies. As perthe provisions contained in the agreement, advances pertaining toincorporation and pre-operative expenses shall be adjusted againstissue of Equity shares by the associate companies. The details areas follows:

Name ofName ofName ofName ofName of EEEEExpensesxpensesxpensesxpensesxpenses BalanceBalanceBalanceBalanceBalance AmounAmounAmounAmounAmounttttt AdditionalAdditionalAdditionalAdditionalAdditionalAssociaAssociaAssociaAssociaAssociat et et et et e incurrincurrincurrincurrincurre de de de de d outstandingoutstandingoutstandingoutstandingoutstanding to beto beto beto beto be AmounAmounAmounAmounAmountttttcccccompaniesompaniesompaniesompaniesompanies aaaaattttt the y the y the y the y the yearearearearear adjustedadjustedadjustedadjustedadjusted P rP rP rP rP roposedoposedoposedoposedoposed

e n de n de n de n de n d againstagainstagainstagainstagainst to beto beto beto beto beissue ofissue ofissue ofissue ofissue of i ni ni ni ni nvvvvvestedestedestedestedested

EquityEquityEquityEquityEquity in Equityin Equityin Equityin Equityin EquitySharSharSharSharShare se se se se s SharSharSharSharShare se se se se s

Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. Rs.Rs.Rs.Rs.Rs. Rs. Rs. Rs. Rs. Rs.

MP AMRL(Semaria)Coal CompanyLimited 32,93,032 32,93,032 32,58,510 16,41,490

MP AMRL(Bicharpur)Coal CompanyLimited 33,13,322 33,13,322 32,58,510 16,41,490

MP AMRL(Marki Barka)Coal CompanyLimited 33,12,222 33,12,222 32,58,510 16,41,490

MP AMRL(Morga)Coal CompanyLimited 33,12,222 33,12,222 32,58,510 16,41,490

TTTTTotalotalotalotalotal 1,32,30,7981,32,30,7981,32,30,7981,32,30,7981,32,30,798 1,32,30,7981,32,30,7981,32,30,7981,32,30,7981,32,30,798 1,30,34,0401,30,34,0401,30,34,0401,30,34,0401,30,34,040 65,65,96065,65,96065,65,96065,65,96065,65,960

9.9.9.9.9. PPPPPaaaaaymenymenymenymenymenttttt made in f made in f made in f made in f made in forororororeign curreign curreign curreign curreign currencyencyencyencyency

An advance of Rs. 21,54,514/- has been made to M/s NorwestCorporation, USA towards preparation of Detailed Project Reportof Semaria-Piparia Coal Block.

10.10.10.10.10. Additional information pursuant to the provisions of paragraph3 & 4 of the part II of schedule VI to the Companies Act, 1956 isnot applicable in absence of any trading activity.

11.11.11.11.11. Previous year’s figures have been regrouped/ rearrangedwherever necessary to make them comparable with currentyear’s figures.

As per our report of even date For and on behalf of the Board of

ACC Mineral Resources Limited,





162

MINERALS


I.I.I.I.I. RRRRRegistregistregistregistregistraaaaation Detailstion Detailstion Detailstion Detailstion Details



IIIIII.I.I.I.I. CCCCCapital rapital rapital rapital rapital raised during the yaised during the yaised during the yaised during the yaised during the year (Amounear (Amounear (Amounear (Amounear (Amounttttt in R in R in R in R in Rupeesupeesupeesupeesupees)))))


N I L N I L


N I L 4 9 0 0 0 0 0 0

IIIIIIIIIII.I.I.I.I. PPPPPosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisation and deplotion and deplotion and deplotion and deplotion and deploymenymenymenymenymenttttt of F of F of F of F of Funds (Amoununds (Amoununds (Amoununds (Amoununds (Amounttttt in R in R in R in R in Rupeesupeesupeesupeesupees)))))

Total Liabilities Total Assets

6 0 4 6 0 7 1 5 6 0 4 6 0 7 1 5



4 9 5 0 0 0 0 0 5 7 1 2 3 2


N I L 1 3 0 0 0 0 0



N I L 4 3 2 5 1 8 8 8


6 8 2 8 8 7 8 1 2 9 0 4 6 6

Accumulated Losses

N I L

IVIVIVIVIV..... PPPPPerererererffffformance of Cormance of Cormance of Cormance of Cormance of Companompanompanompanompany (Amouny (Amouny (Amouny (Amouny (Amounttttt in R in R in R in R in Rupeesupeesupeesupeesupees)))))

Income Expenditure

4 6 5 6 6 9 3 0 4 5 3 4

Profit/Loss before Tax Profit/Loss after Tax

+ 1 6 1 1 3 5 + 1 6 1 1 3 5

Earning per share in Rs. Dividend rate %

0 . 9 0 N I L

VVVVV..... Generic Name of Generic Name of Generic Name of Generic Name of Generic Name of ThrThrThrThrThree Principal Pree Principal Pree Principal Pree Principal Pree Principal Producoducoducoducoducts / Serts / Serts / Serts / Serts / Services of the Cvices of the Cvices of the Cvices of the Cvices of the Companompanompanompanompanyyyyy(((((as per monetaras per monetaras per monetaras per monetaras per monetary termsy termsy termsy termsy terms)))))

Item CItem CItem CItem CItem Code Noode Noode Noode Noode No. (IT. (IT. (IT. (IT. (ITC CC CC CC CC Code)ode)ode)ode)ode) N I L

ADDITADDITADDITADDITADDITIONAL INIONAL INIONAL INIONAL INIONAL INFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO PARO PARO PARO PARO PART IV OFT IV OFT IV OFT IV OFT IV OFSCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHE COE COE COE COE COMPMPMPMPMPANANANANANIIIIIES ACTES ACTES ACTES ACTES ACT, 1956., 1956., 1956., 1956., 1956.

163

BUBUBUBUBULK CLK CLK CLK CLK CEMENT CEMENT CEMENT CEMENT CEMENT CORORORORORPPPPPORORORORORAAAAATTTTTION (IION (IION (IION (IION (INNNNNDIA) LIMITDIA) LIMITDIA) LIMITDIA) LIMITDIA) LIMITEDEDEDEDEDDIRECTORS’ REPORT

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFBUBUBUBUBULK CLK CLK CLK CLK CEMENT CEMENT CEMENT CEMENT CEMENT CORORORORORPPPPPORORORORORAAAAATTTTTION (IION (IION (IION (IION (INNNNNDIA) LIMITDIA) LIMITDIA) LIMITDIA) LIMITDIA) LIMITEDEDEDEDED

11111 The Directors hereby present their Eighteenth Annual Reporton the business and operations of the Company and the AuditedAccounts for the year ended December 31, 2009.

22222 FIFIFIFIFINANCNANCNANCNANCNANCIAL RIAL RIAL RIAL RIAL RESUESUESUESUESULLLLLTTTTTSSSSS

PARTICULARS For the year ended For the year endedDecember 31, 2009 December 31, 2008


Sale of Products, Services andOther Income 1202.89 1320.93

Profit Before Tax (195.69) (101.41)


- Current Tax 3.00 12.03

- Deferred Tax (91.32) (61.84)

- Fringe Benefits Tax 0.21 0.90

(88.11) (48.91)

Profit after Taxation (107.58) (52.50)

Balance brought forward 1100.81 1153.31from previous year

Balance carried forward toBalance Sheet 993.23 1100.81

33333 OPEROPEROPEROPEROPERAAAAATTTTTIONSIONSIONSIONSIONS

The total despatches for the year ended December 31, 2009were 8.15 Lacs MT compared to 7.60 Lacs MT in thecorresponding period of the previous year. The despatches forthe year 2009 were so far the highest achieved by your Company.

In all 315 rakes were received during the year 2009 as comparedto 309 rakes received during the year 2008 indicating an increaseof 2%.

The Company continued to operate at unity power factor. Thespecific power consumption for the year 2009 was 3.11 Units/Tas against 3.07 Units/T for the year 2008.

44444. IIIIINNNNNDUSDUSDUSDUSDUSTTTTTRRRRRIAL RIAL RIAL RIAL RIAL RELAELAELAELAELATTTTTIONSIONSIONSIONSIONS

During the year under review, industrial relations at theCompany’s unit continued to remain cordial and peaceful.

55555. PPPPPARARARARARTTTTTICUICUICUICUICULARLARLARLARLARS OF CS OF CS OF CS OF CS OF CONSERONSERONSERONSERONSERVVVVVAAAAATTTTTION OF ENION OF ENION OF ENION OF ENION OF ENERERERERERGGGGGYYYYY, , , , , TTTTTECECECECECHHHHHNOLNOLNOLNOLNOLOOOOOGGGGGYYYYYABSORABSORABSORABSORABSORPPPPPTTTTTION ANION ANION ANION ANION AND FORD FORD FORD FORD FOREIGN EEIGN EEIGN EEIGN EEIGN EXXXXXCCCCCHANGE OUHANGE OUHANGE OUHANGE OUHANGE OUTTTTTGOGOGOGOGO

As required under Section 217(1)(e) of the Companies Act 1956,read with the Companies (Disclosure of Particulars in the Reportof the Board of Directors) Rules, 1988, the particulars in respectof conservation of energy, technology absorption and foreignexchange earnings and outgo are mentioned herein below:

FORM “FORM “FORM “FORM “FORM “AAAAA”””””

Form for Disclosure of Particulars with respect to Conservation ofEnergy, Power and Fuel Consumption:

PPPPPA RA RA RA RA RTTTTTICUICUICUICUICUL A RL A RL A RL A RL A RSSSSS FFFFFor the yor the yor the yor the yor the year endedear endedear endedear endedear ended FFFFFor the yor the yor the yor the yor the year endedear endedear endedear endedear endedDecember 31, 2009December 31, 2009December 31, 2009December 31, 2009December 31, 2009 December 31, 2008December 31, 2008December 31, 2008December 31, 2008December 31, 2008

1. Electricitya. Units Purchased KWH 2524440 2305774

Total Amount (Rs. Lac) 141.19 113.08 Rate/Unit in Rs./KWH 5.59 4.90

b. Own Generation 798 Nil

2. Consumption /Unit of ProductionElectricity (Unit/MT) 3.10 3.03

Disclosure of particulars with respect to Foreign Exchange Earning andOutgo

PPPPPARARARARARTTTTTICUICUICUICUICULARLARLARLARLARSSSSS FFFFFor the yor the yor the yor the yor the year endedear endedear endedear endedear ended FFFFFor the yor the yor the yor the yor the year endedear endedear endedear endedear endedDecember 31, 200December 31, 200December 31, 200December 31, 200December 31, 20099999 December 31, 200December 31, 200December 31, 200December 31, 200December 31, 20088888

Foreign Exchange Earningand Outgo

Foreign Exchange earned Nil NilEarned Foreign Exchange used Nil Nil

The Company has not entered into any technology transfer agreement.

66666. PPPPPARARARARARTTTTTICUICUICUICUICULARLARLARLARLARS OF EMPLS OF EMPLS OF EMPLS OF EMPLS OF EMPLOOOOOYYYYYEESEESEESEESEES

The Company has not employed any individual whoseremuneration falls within the purview of the limits prescribedunder the provisions of Sec 217(2A) of the Companies Act, 1956,read with the Companies (Particulars of Employees) Rules, 1975.

77777. DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORSSSSS

Mr. N. N. Prasad who was appointed as Chairman of theCompany with effect from October 29, 2007, resigned from theBoard of Directors of the Company with effect from July 17,2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr. Prasad as Chairman of theCompany.

Mr. Sunil Mathur who was appointed as a Director of theCompany with effect from June 7, 2006, resigned from the Boardof Directors of the Company with effect from July 17, 2009. TheBoard has placed on record its appreciation of the valuableservices rendered by Mr. Mathur as Director of the Company.

Mr A Anjeneyan who was appointed as a Director of theCompany with effect from June 18, 2007, resigned from theBoard of Directors of the Company with effect from July 17,2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr. A. Anjeneyan as a Director ofthe Company.

Mr Onne van der Weijde who was appointed as a Director ofthe Company with effect from January 23, 2007 , resigned fromthe Board of Directors of the Company with effect from October

164

22, 2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr. Onne van der Weijde as aDirector of the Company.

Mr Naveen Chadha who was appointed as a Director of theCompany with effect from October 10, 2005, resigned from theBoard of Directors of the Company with effect from January 29,2010. The Board has placed on record its appreciation of thevaluable services rendered by Mr. Naveen Chadha as a Directorof the Company.

Mr. Ravinder Mohan who was appointed as a Director in thecasual vacancy caused by the resignation of Mr. Arvind Pathak,holds office up to the date of the ensuing Annual GeneralMeeting of the Company. Accordingly his candidature forappointment is included at Item 4 of the Notice.

The Government of India, Ministry of Commerce and Industryhas, pursuant to its right under the Company’s Articles ofAssociation, nominated Ms. Renu Sharma (IAS) Joint Secretary,Department of Industrial Promotion and Planning in theMinistry of Commerce and Industry as a Director of theCompany in place of Mr. N. N. Prasad. Ms. Renu Sharma holdsoffice upto the date of forthcoming Annual General Meeting.

The Government of India, Ministry of Railways has, pursuant toits right under the Companies Articles of Association, nominatedMr. Suchitto Kumar Das as a Director of the Company in placeof Mr. Sunil Mathur. Mr. Das holds office upto the date of theforthcomng Annual General Meeting.

The Board of Directors has appointed Mr. Ramit Budhraja, Mr.B. D. Nariman and Mr. S. Das Gupta as Additional Directors ofthe Company with effect from January 29, 2010. As AdditionalDirectors, Mr. Ramit Budhraja, Mr. B. D. Nariman and Mr. S. DasGupta hold office till the date of the forthcoming AnnualGeneral Meeting. Accordingly, their candidature for appointmentas Directors is included at Items 7 to 9 of the Notice.

In accordance with the provisions of the Companies Act, 1956,Mr. Sumit Banerjee retires by rotation and is eligible forreappointment.

88888. DIDIDIDIDIRRRRRECTECTECTECTECTORORORORORS’S’S’S’S’ R R R R RESPESPESPESPESPONSIONSIONSIONSIONSIBBBBBIIIIILITY SLITY SLITY SLITY SLITY STTTTTAAAAATTTTTEMENTEMENTEMENTEMENTEMENT

To the best of their knowledge and belief and according to theinformation and explanations obtained by them, your Directorsmake the following statement in terms of Section 217 (2AA) ofthe Companies Act, 1956:

i) that in the preparation of the Accounts for the year endedDecember 31, 2009, the applicable accounting standardshave been followed along with proper explanation relatingto material departures, if any,

ii) that such accounting policies as mentioned in Note 1 ofthe Notes to the Accounts have been selected and appliedconsistently and judgements and estimates that arereasonable and prudent made so as to give a true and fairview of the state of the affairs of the Company as atDecember 31, 2009, and of the Profit of the Company forthe year ended on that date,

iii) that proper and sufficient care has been taken for themaintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 1956, forsafeguarding the assets of the Company and for preventingand detecting fraud and other irregularities,

iv) that the accounts for the year ended December 31, 2009have been prepared on a going concern basis.

9.9.9.9.9. AAAAAUUUUUDIT CDIT CDIT CDIT CDIT COOOOOMMITTMMITTMMITTMMITTMMITTEEEEEEEEEE

The Audit Committee comprised of the following Members:

Mr. Shashi Ranjan Kumar (Chairman)Mr. Ravinder MohanMr. Sunil NayakMr. A. Anjeneyan

Consequent upon his resignation from the Board of Directors,Mr. A. Anjeneyan has ceased to be a member of the Committeewith effect from July 17, 2009.

During the year ended December 31, 2009 four Audit CommitteeMeetings were held.

The Board of Directors at its Meeting held on January 29, 2010re-constituted the Audit Committee which now comprises ofthe following Members:

Mr. Shashi Ranjan Kumar (Chairman)Mr. Ramit BudhrajaMr. Sunil NayakMr. B. D. NarimanMr. S. Dasgupta

10.10.10.10.10. AAAAAUUUUUDITDITDITDITDITORORORORORSSSSS

M/s. K S Aiyar & Co., Mumbai, the existing Auditors have underSection 224 (1B) of the Companies Act, 1956, furnished thecertificate of their eligibility for their re-appointment. TheMembers are requested to re-appoint them as Auditors of theCompany for the year 2010 on a remuneration to be decided bythe Board of Directors.

11.11.11.11.11. AAAAACCCCCKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

Your Directors take this opportunity to express their gratefulappreciation of the excellent assistance and co-operationreceived from the Department of Industrial Promotion andPolicy, Ministry of Commerce and Industry, Ministry of Railways,ACC Limited and Company’s Bankers. Your Directors also thankall the employees of the Company for their valuable serviceand support during the year.


Sumit Banerjee Sunil NayakDirector Director

Mumbai

Date: January 29, 2010

165

AUDITORS’ REPORT

TTTTTooooo,,,,,

The Members of Bulk CThe Members of Bulk CThe Members of Bulk CThe Members of Bulk CThe Members of Bulk Cemenemenemenemenementtttt C C C C Corpororpororpororpororporaaaaation (India) Limitedtion (India) Limitedtion (India) Limitedtion (India) Limitedtion (India) Limited

1. We have audited the attached Balance Sheet of Bulk CementCorporation (India) Limited, as at December 31, 2009, and alsothe Profit and Loss Account and the Cash Flow Statement forthe year ended on that date, annexed thereto. These financialstatements are the responsibility of the Company’smanagement. Our responsibility is to express an opinion onthese financial statements based on our audit.


3. As required by the Companies (Auditor’s Report) Order, 2003(as amended) (‘the order’) issued by the Central Government ofIndia in terms of sub-section (4A) of Section 227 of theCompanies Act, 1956, we enclose in the annexure a statementon the matters specified in paragraphs 4 and 5 of the said Order.












Rajesh S. JoshiPlace: Mumbai PartnerDate: January 29 , 2010 Membership No.: 38526

166

ANANANANANNNNNNEEEEEXXXXXUUUUURRRRRE E E E E TTTTTO O O O O TTTTTHHHHHE AE AE AE AE AUUUUUDITDITDITDITDITORORORORORS’S’S’S’S’ R R R R REPEPEPEPEPORORORORORT (REFERT (REFERT (REFERT (REFERT (REFERRRRRRED ED ED ED ED TTTTTO IO IO IO IO IN PN PN PN PN PARARARARARA-A-A-A-A-GRGRGRGRGRAPH 3 OF OUAPH 3 OF OUAPH 3 OF OUAPH 3 OF OUAPH 3 OF OUR REPR REPR REPR REPR REPORORORORORT OF ET OF ET OF ET OF ET OF EVEN DVEN DVEN DVEN DVEN DAAAAATTTTTE)E)E)E)E)(i) (a) The Company has maintained proper records showing full

particulars including quantitative details and situation offixed assets.

(b) Most of the fixed assets have been physically verified bythe management during the year and no materialdiscrepancies were noticed on such verification. In ouropinion the frequency of physical verification of fixed assetsis reasonable having regard to the size of the Companyand the nature of its assets.

(c) No Fixed assets have been disposed off during the year.(ii) (a) The inventories have been physically verified during the

year by the management. In our opinion, the frequency ofverification is reasonable.

(b) In our opinion the procedures of physical verification ofinventories followed by the management are reasonableand adequate in relation to the size of the Company andthe nature of its business.

(c) The Company has maintained proper records of inventory.No discrepancies were noticed on verification between thephysical stocks and the book stocks.


(b) As informed, the Company has not taken any loans, securedor unsecured from companies, firms or other partiescovered in the register maintained under Section 301 ofthe Companies Act, 1956. Accordingly, sub-clause (f) and(g) are not applicable.

(iv) In our opinion and according to the information andexplanations given to us, there is an adequate internal controlsystem commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixedassets and for the sale of goods and services. During the courseof our audit, no major weakness has been noticed in the internalcontrol system in respect of these areas.

(v) (a) According to the information and explanations given tous, there are no transactions that need to be entered intothe register maintained in pursuance of section 301 of theCompanies Act, 1956. Accordingly, sub-clause (b) is notapplicable.

(vi) The Company has not accepted any deposits from the public towhich the provisions of section 58A, 58AA, or any other relevantprovisions of the Companies Act, 1956 and the Companies(Acceptance of Deposit) Rules 1975 apply.

(vii) In our opinion, the Company has an internal audit systemcommensurate with the size and nature of its business.

(viii) The Central Government has not prescribed the maintenanceof cost records under section 209(1) (d) of the Companies Act,1956.

(ix) (a) According to the records of the Company, the Companyhas been generally regular in depositing undisputedstatutory dues including Provident Fund, Investor Educationand Protection Fund, Employees State Insurance, Sales Tax,Income Tax, Wealth Tax, Service Tax, Custom duty, Exciseduty, Cess and other material statutory dues with theappropriate authorities. Based on our audit procedures andaccording to the information and explanations given to us,

there are no arrears of undisputed statutory dues whichremained outstanding as at December 31, 2009 for a periodof more that six months from the date they becamepayable.

(b) According to the records of the Company, Income tax, Salestax, Wealth tax, Service tax, Custom duty, Excise duty andCess which have not been deposited on account of anydispute, are as follows:

Nature Period to which the Amounts involved Forum where theof dues amount relates (dues to the extent dispute is

not deposited) pending

Service Tax Financial years Rs. 27.71 Lakhs Assistant2001-02 to 2005-06 Commissioner of

Service Tax

(x) The Company does not have any accumulated losses at theend of the financial year and has not incurred cash lossesduring the financial year covered by our audit and theimmediately preceding financial year.

(xi) There are no dues to banks or financial institutions ordebenture holders.

(xii) Based on our examination of documents and records, we areof the opinion that the Company has not granted any loansand advances on the basis of security by way of pledge ofshares, debentures and other securities.

(xiii) The Company is not a chit fund, nidhi/mutual benefit fundand therefore the requirements pertaining to such class ofcompanies are not applicable.

(xiv) In our opinion, the Company is not dealing in or trading inshares, securities, debentures and other investments.Accordingly, the provisions of clause 4(xiv) of the Order arenot applicable to the Company.

(xv) The Company has not given any guarantee for loans taken byothers from banks or financial institutions.

(xvi) According to the information and explanations given to us,the Company has not raised any loans during the period.



(xix) The Company has not issued any debentures during the yearunder audit. Therefore the provisions of clause (xix) of theorder is not applicable to the company.

(xx) The Company has not raised any money by way of public issueduring the year. Therefore, the provision of clause (xx) of theorder is not applicable to the Company.

(xxi) Based upon the audit procedures performed and according tothe information and explanations given and representationsmade by the management, we report that no fraud on or bythe Company has been noticed or reported during the courseof our audit.


Rajesh S. JoshiPlace: Mumbai PartnerDate: January 29, 2010 Membership No.: 38526

167

BALANCE SHEET AS AT DECEMBER 31, 2009 PROFIT & LOSS ACCOUNT FOR THE YEARENDED DECEMBER 31, 2009


2009 2008

Schedules Rs. Lac Rs. Lac


1 SHAREHOLDERS’ FUNDS

(a) Share Capital 1 3,364.21 3364.21

(b) Reserves & Surplus 2 993.23 1100.81

2 DEFERRED TAX LIABILITY (Net) 538.06 629.38

TOTAL LIABILITIES 4,895.504,895.504,895.504,895.504,895.50 5,094.405,094.405,094.405,094.405,094.40


1 FIXED ASSETS 3

(a) Gross block 8,693.19 7,230.02

(b) Less: Depreciation 4,116.63 3,600.81

(c) Net Block 4,576.56 3,629.21

(d) Capital Work- in- Progress(including capital advances) 21.56 398.16

4,598.12 4,027.37

2 INVESTMENT 4 800.00 1,305.00

3 CURRENT ASSETS, LOANS AND ADVANCES:

(a) Inventory-Stores & Spares(as certified by management) 31.44 23.89

(b) Sundry Debtors 5 175.73 99.05

(c) Cash & Bank balances 6 33.34 1.67

(d) Other Current Assets 7 - 10.37

(e) Loans & Advances 8 153.45 133.49

393.96 268.47

4 Less: CURRENT LIABILITIES AND PROVISIONS

(a) Sundry Liabilities 9 896.58 505.12

(b) Provisions - 1.32

896.58 506.44

5 NET CURRENT ASSETS (502.62) (237.97)

TOTAL ASSETS 4,895.504,895.504,895.504,895.504,895.50 5,094.405,094.405,094.405,094.405,094.40

6 NOTES TO ACCOUNTS 12

As per our report attached For and on behalf of the Board

For K.S.Aiyar & Co. Ravinder MohanChartered Accountants Sunil Nayak Director

Rajesh S. JoshiPartnerMembership No.: 38526

Mumbai: January 29, 2010



Schedules Rs. Lac Rs. Lac

IIIIINCNCNCNCNCOOOOOME :ME :ME :ME :ME :

1 SALE OF PRODUCTS SERVICESAND OTHER INCOME 10 1,202.89 1,320.93

EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE :E :E :E :E :

2 OPERATING AND OTHEREXPENSES 11 829.45 943.96

3 DEPRECIATION 515.82 478.38

4 SHORT PROVISION FOREXPENSES IN EARLIER YEARS 53.31 -

1,398.58 1,422.34

PRPRPRPRPROFIT / (LOFIT / (LOFIT / (LOFIT / (LOFIT / (LOSS) BOSS) BOSS) BOSS) BOSS) BEFOREFOREFOREFOREFORE E E E E TTTTTAXAXAXAXAX (195.69)(195.69)(195.69)(195.69)(195.69) (101.41)(101.41)(101.41)(101.41)(101.41)

5 PROVISION FOR TAXATION

(a) Current Tax 3.00 12.03

(b) Deferred Tax (91.32) (61.84)

(c) Fringe Benefits Tax 0.21 0.90

(88.11) (48.91)

PRPRPRPRPROFIT / (LOFIT / (LOFIT / (LOFIT / (LOFIT / (LOSS) AFTOSS) AFTOSS) AFTOSS) AFTOSS) AFTER ER ER ER ER TTTTTAXAXAXAXAX (107.58)(107.58)(107.58)(107.58)(107.58) (52.50)(52.50)(52.50)(52.50)(52.50)

7 PROFIT / (LOSS) BROUGHT FORWARD 1,100.81 1,153.31

BBBBBALANCALANCALANCALANCALANCE CE CE CE CE CARARARARARRRRRRIIIIIED ED ED ED ED TTTTTO BO BO BO BO BALANCALANCALANCALANCALANCE SHE SHE SHE SHE SHEETEETEETEETEET 993.23993.23993.23993.23993.23 1,100.811,100.811,100.811,100.811,100.81

8 NOTES TO ACCOUNTS 12

EEEEEARARARARARNNNNNIIIIINGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARE (See Note 4)E (See Note 4)E (See Note 4)E (See Note 4)E (See Note 4)

9 BASIC AND DILUTEDEARNINGS PER SHARE RUPEES (0.32) (0.15)





}

}

168

CASH FLOW STATEMENT FOR THE YEARENDED DECEMBER 31, 2009


For the For theyear ended year endedDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

A.A.A.A.A. CCCCCash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities

1 Net Profit / (Loss) before taxation (195.69) (101.41)

Adjustments For:

Depreciation 515.82 478.38

Interest Received (0.03) (4.23)

Miscellaneous expenditure written off - 0.15

Provisions written back (7.52) (136.62)

Loss / (Profit) on sale of Investment (58.32) (61.51)

Dividend on Mutual Fund - (10.37)

OperOperOperOperOperaaaaating prting prting prting prting profitofitofitofitofit bef bef bef bef befororororore we we we we working capital changesorking capital changesorking capital changesorking capital changesorking capital changes 254.26254.26254.26254.26254.26 172.85172.85172.85172.85172.85

2 Trade Receivables (76.68) 901.87

3 Inventories (7.54) (15.63)

4 Other receivables (17.81) (59.10)

5 Trade payables 394.44 153.00

Cash generated from Operations 546.67 1,152.99

6 Direct Taxes refund / (paid) 7.81 (7.17)

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities 554.48554.48554.48554.48554.48 1,145.821,145.821,145.821,145.821,145.82

BBBBB CCCCCash flow frash flow frash flow frash flow frash flow from inom inom inom inom invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities

7 Interest received 0.03 4.23

8 Purchase of Investments 505.00 (1,305.00)

9 Profit on sale of Investment 58.32 51.14

10 Purchase of Fixed Assets (1,086.16) 58.36

11 Dividend on Mutual Fund - 10.37

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from inom inom inom inom invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities (522.81)(522.81)(522.81)(522.81)(522.81) (1,180.90)(1,180.90)(1,180.90)(1,180.90)(1,180.90)

NetNetNetNetNet Incr Incr Incr Incr Increaseeaseeaseeaseease ///// (((((decrdecrdecrdecrdecrease) in cash & cash equivease) in cash & cash equivease) in cash & cash equivease) in cash & cash equivease) in cash & cash equivalenalenalenalenalentststststs 31.6731.6731.6731.6731.67 (35.08)(35.08)(35.08)(35.08)(35.08)

Cash and cash equivalents :

Opening Balance 1.67 36.75

Closing Balance 33.34 1.67

Notes:

1 All figures in brackets are outflow

2 Figures for the previous year have been regrouped / restated wherevernecessary to make them comparable.

3 Direct Taxes paid are treated as arising from Operating Activities and arenot bifurcated between Investing and Financing Activities.

4 Cash and Cash Equivalent is Cash and Bank Balances as per Balance Sheet.





SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-1: SHARLE-1: SHARLE-1: SHARLE-1: SHARLE-1: SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

11111 AAAAAUUUUUTTTTTHORHORHORHORHORISEDISEDISEDISEDISED

34,000,000 Equity Shares of Rs. 10 each. 3,400.00 3,400.00

11,000,000 Preference Shares of Rs. 10 each. 1,100.00 1,100.00

4,500.00 4,500.00

22222 ISSUISSUISSUISSUISSUED SUED SUED SUED SUED SUBSCBSCBSCBSCBSCRRRRRIIIIIBBBBBED ANED ANED ANED ANED AND FD FD FD FD FUUUUULLLLLLLLLLY PY PY PY PY PAIAIAIAIAID UD UD UD UD UPPPPP

33,642,070 Equity Shares of Rs. 10 each fully paid 3,364.21 3,364.21

(ACC Limited the Holding Company, holds31,842,050 Equity Shares (Previous year31,842,050 Equity shares))

3,364.21 3,364.21

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-2 : RLE-2 : RLE-2 : RLE-2 : RLE-2 : RESERESERESERESERESERVES & SUVES & SUVES & SUVES & SUVES & SURRRRRPLPLPLPLPLUSUSUSUSUS As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

PROFIT AND LOSS ACCOUNT 993.23 1,100.81

993.23 1,100.81

}

169

SCHEDULES FORMING PART OF BALANCE SHEET

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-4 : ILE-4 : ILE-4 : ILE-4 : ILE-4 : INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENT As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

SHORT TERM LIQUID FUND 800.00 1305.00

800.00 1,305.00

During the year the Company acquired and soldthe following investments in Mutual Funds

Particulars Face Value Rs. No. of Units Purchase PriceReliance Medium Term Fund 10 4,382,558 79,500,000LIC MF Saving Plus Fund-Growth Plan 10 10,575,696 149,000,000UTI Money Market Mutual Fund 1,000 2763 7,000,000

Total 235,500,000

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-5 : SULE-5 : SULE-5 : SULE-5 : SULE-5 : SUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

SUNDRY DEBTORS UNSECUREDSUNDRY DEBTORS(a) Over Six Months

Considered Good 0.25 1.08Considered Doubtful - 11.43

0.25 12.52Less: Provision for Doubtful Debts - 11.43

0.25 1.08(b) Others Considered Good 175.48 97.97

Due from The Holding Company: ACCLimited Rs. 175.48 Lac;(Previous yearRs. 97.97 Lac) ; Maximum outstandingbalance during the period Rs. 1210.38 Lac ;(Previous year Rs. 1040.00 Lac)

175.73 99.05

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-6 : CLE-6 : CLE-6 : CLE-6 : CLE-6 : CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANK BK BK BK BK BALANCALANCALANCALANCALANCESESESESES As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

CASH ON HAND 0.03 0.05CURRENT ACCOUNTS / BALANCE WITHSCHEDULED BANKS 33.31 1.62

33.34 1.67

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-7 : Other CurrLE-7 : Other CurrLE-7 : Other CurrLE-7 : Other CurrLE-7 : Other Currenenenenenttttt Assets Assets Assets Assets Assets As at As atDecember December

31, 2009 31, 2008

Rs. Lac Rs. Lac

Accrued Interest on Investment - 10.37

- 10.37

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-8 : LLE-8 : LLE-8 : LLE-8 : LLE-8 : LOOOOOANS ANANS ANANS ANANS ANANS AND ADD ADD ADD ADD ADVVVVVANCANCANCANCANCESESESESES As at As at(Unsecur(Unsecur(Unsecur(Unsecur(Unsecured Ced Ced Ced Ced Consideronsideronsideronsideronsidered Good)ed Good)ed Good)ed Good)ed Good) December December

31, 2009 31, 2008

Rs. Lac Rs. Lac

(a) Balance with Excise, Customs and PortTrust Authorities on Current accounts 58.21 2.46

(b) Advances recoverable in cash or in kind orfor value to be received 53.45 81.42

(c) Other Deposits 17.95 17.95(d) Advance Tax Paid (Net of Provision for Taxation) 23.58 31.66(e) Advance Fringe Benefits

Tax (Net of Provision for Taxation) 0.26 -

153.45 133.49

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-9 : CULE-9 : CULE-9 : CULE-9 : CULE-9 : CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES As at As atANANANANAND PRD PRD PRD PRD PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS December December

31, 2009 31, 2008

Rs. Lac Rs. Lac

A SUNDRY LIABILITIESSUNDRY CREDITORS(a) For Capital Expenditure 367.37 137.67(b) For Other Liabilities 529.21 367.45

Due to The Holding Company:ACC Limited Rs. 13.17 Lac;(Previous year Rs. 13.17 Lac)

896.58 505.12

B PROVISIONS

(a) Provision for Fringe Benefit Tax(Net of Advance Tax) - 0.42

(b) Provision for Leave Encashment - 0.90

- 1.32

896.58 506.44

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-3 : FIXED ALE-3 : FIXED ALE-3 : FIXED ALE-3 : FIXED ALE-3 : FIXED ASSETSSETSSETSSETSSETSSSSSRs. LacRs. LacRs. LacRs. LacRs. Lac

GROSS BLOCK DEPRECIATION NET BLOCK

FIXED ASSETS As at Additions Deletions Adjustments As at As at For The On Adjustments As at As at As at31-12-2008 31-12-2009 31-12-2008 Year Disposals 31-12-2009 31-12-2009 31-12-2008

Building 390.63 - - - 390.63 96.62 13.05 - - 109.67 280.96 294.01

Plant & Machinery 3,041.21 12.46 - - 3,053.67 1,764.53 293.50 - - 2,058.04 995.63 1,276.67

Roads, Bridges 193.70 - - - 193.70 31.29 3.16 - - 34.45 159.25 162.41

Rails & Sidings 355.56 - - - 355.56 167.40 16.89 - - 184.29 171.27 188.16

Wagon & Loco 2,579.22 1,445.80 - - 4,025.02 1,214.30 157.51 - - 1,371.81 2,653.21 1,364.92

Furniture & Fixtures 13.75 0.07 - - 13.82 11.11 0.70 - - 11.81 2.01 2.64

Office Equipments 17.27 - - - 17.27 13.83 0.35 - - 14.18 3.08 3.44

Vehicles 6.80 - - - 6.80 4.51 0.65 - - 5.16 1.64 2.29

Electrical Installation 631.89 4.84 - - 636.73 297.20 30.02 - - 327.22 309.51 334.69

Total 7,230.02 1,463.17 - - 8,693.19 3,600.81 515.82 - - 4,116.63 4,576.56 3,629.22

Previous Year 7,172.06 58.36 - - 7,230.02 3,122.42 478.38 - - 3,600.81 3,629.22

Capital Work in Progress 21.56 398.16

Note:The terminal is on leasehold land of the Central Government in possession of the Company. It was sanctioned for the project by the Ministry of Industry, Government of India, vide letterNo.DCCI/1-26/91-92 Dt.27.09.93Sublease granted by Central government to the Company for 60 years on 12.12.2008 effective from 12.12.1991.

170

SCHEDULES FORMING PART OF THEPROFIT AND LOSS ACCOUNT

SCHEDULES FORMING PART OF THE BALANCESHEET AND PROFIT AND LOSS ACCOUNT

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE-10 : SLE-10 : SLE-10 : SLE-10 : SLE-10 : SALE OF PRALE OF PRALE OF PRALE OF PRALE OF PRODUCTODUCTODUCTODUCTODUCTSSSSS,,,,, For the For theSERSERSERSERSERVICVICVICVICVICES ANES ANES ANES ANES AND OD OD OD OD OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME year ended year ended



1 BULK HANDLING CHARGES 750.60 711.08

2 FREIGHT REBATE 377.26 406.25

1,127.86 1,117.33

3 OTHER INCOME

(a) Income on Mutual Fund - 10.37

(b) Profit on sale of Investment 58.32 51.14

(c) Interest {Including Tax 0.03 4.23Deducted at Source Rs. Nil,(Previous Year Rs 0.88 Lac)}

(d) Excess provisions made inprevious years written back 7.52 136.62

(e) Others 9.17 1.24

75.03 203.60

1,202.89 1,320.93

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULELELELELE-----11 : OPER11 : OPER11 : OPER11 : OPER11 : OPERAAAAATTTTTIIIIING ANNG ANNG ANNG ANNG AND OD OD OD OD OTTTTTHHHHHERERERERER For the For theEEEEEXPENSESXPENSESXPENSESXPENSESXPENSES year ended year ended



1 PAYMENTS TO AND PROVISION FOR

EMPLOYEES

(a) Staff Welfare 0.46 0.82

(b) Deputation Charges 70.12 76.02

70.58 76.84

2 OPERATION AND OTHER EXPENSES

(a) Purchase of Power 139.60 117.62

(b) Plant Operating Charges 84.43 81.42

(c) Rates & Taxes 28.97 34.61

(d) Insurance 14.46 14.66

(e) Repairs & Maintenance - Plant 383.15 509.39

(f) Repairs & Maintenance - Buildings 15.91 29.86

(g) Repairs & Maintenance - Others 9.24 12.21

(h) Communication 3.05 2.80

(i) Travelling & Conveyance 8.80 5.25

( j) Security Charges 27.92 28.27

(k) Legal Services 27.07 13.65

(l) Auditors Remuneration (Ref note 10) 5.00 4.57

(m) Other Expenses 11.27 12.64

758.87 866.97

3 MISCELLANEOUS EXPENDITUREWRITTEN OFF - 0.15

829.45 943.96

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE – 12 NOLE – 12 NOLE – 12 NOLE – 12 NOLE – 12 NOTTTTTES ON AES ON AES ON AES ON AES ON ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIES ANES ANES ANES ANES AND NOD NOD NOD NOD NOTTTTTES FORMIES FORMIES FORMIES FORMIES FORMING PNG PNG PNG PNG PARARARARART OF T OF T OF T OF T OF TTTTTHHHHHEEEEEAAAAACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTS FOR S FOR S FOR S FOR S FOR TTTTTHHHHHE E E E E YYYYYEEEEEAR ENAR ENAR ENAR ENAR ENDED DECDED DECDED DECDED DECDED DECEMBEMBEMBEMBEMBER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009

1.1.1.1.1. SignificanSignificanSignificanSignificanSignificanttttt Acc Acc Acc Acc Accounounounounounting Pting Pting Pting Pting Policiesoliciesoliciesoliciesolicies

A) Accounting Convention

These financial statements are prepared on the historical cost convention, onan accrual basis.

B) Revenue Recognition

Revenue arising from charges for bulk handling of cement is recognized basedon tonnage handled and rebate on freight granted by the Railways is recognizedbased on tonnage of bulk cement despatched from the supplier to theCompany’s terminal at Kalamboli.

Interest and Dividend Income

Interest income is recognized on a time proportion basis taking into accountthe amount outstanding and the rate applicable. Dividend income is recognizedwhen the shareholders’ right to receive dividend is established by the BalanceSheet date.

C) Fixed Assets and Depreciation

(i) Fixed assets are stated at cost of acquisition or construction, includingattributable interest and financial cost till such assets are ready for itsintended use, less accumulated depreciation, impairment losses andspecific grants received, if any.

(ii) Depreciation is provided in the accounts on the Straight Line Method atthe rates prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis.

D) Investments

Long term investments are carried at cost. However, provision for diminutionin value is made to recognize a decline other than temporary in the value ofinvestments. Current investments are stated at cost or fair value whichever islower.

E) Inventory

The Company does not carry any inventory of raw materials and there are noStock of Traded Finished Goods at the end of the year. The stock of stores andspares is valued at cost (Weighted Average(Moving) and net realizable valuewhichever is less.

F) Employees Benefit

The Company operates through the employees on deputation from the parentcompany. All the emoluments payable to these employees along with therelated benefits are claimed by the parent company and is reimbursed. This isdisclosed as Deputation Charges in the Profit & Loss Account.

G) Taxation

Tax expense comprises of current, deferred & fringe benefit tax. Current Incometax & Fringe Benefit tax is measured at the amount expected to be paid to thetax authorities in accordance with the Indian Income Act. Deferred IncomeTaxes reflect the impact of current timing differences between taxable income& accounting income for the year & reversal of timing differences of earlieryears

Deferred tax is measured based on the tax rates and the tax laws enacted orsubstantively enacted at the balance sheet date.Deferred tax assets arerecognized only to the extent that there is reasonable certainity that sufficientfuture taxable income will be available against which such deferred taxasset can be realized.Deferred tax assets are reviewed at each balance sheetdate.

H) Impairment of Assets

The carrying amounts of assets are reviewed at each Balance Sheet date, ifthere is any indication of impairment based on internal / external factors. Animpairment loss will be recognized wherever the carrying amount of an assetexceeds its estimated recoverable amount. The recoverable amount is greaterof the asset’s net selling price and value in use. In assessing the value in use,the estimated future cash flows are discounted to the present value using theweighted average cost of capital. Previously recognized impairment loss isfurther provided or reversed depending on changes in circumstances.

171

I) Contingencies / Provisions

Provisions are recognized when the Company has a present obligation as aresult of past event; it is probable that an outflow of resources embodyingeconomic benefit will be required to settle the obligation, in respect of whicha reliable estimate can be made. Provisions are not discounted to its presentvalue and are determined based on best estimate of the expenditure requiredto settle the obligation at the Balance Sheet date. These are reviewed at eachBalance Sheet date and adjusted to reflect the current best estimate. Acontingent liability is disclosed, unless the possibility of an outflow of resourcesembodying the economic benefit is remote.

J) During the year, the Company is engaged in only one business segment i.e.bulk handling of cement, hence segment information as per AccountingStandard 17 is not required to be disclosed.

2.2.2.2.2. RRRRRelaelaelaelaelated Pted Pted Pted Pted Parararararty Disclosurty Disclosurty Disclosurty Disclosurty Disclosures.es.es.es.es.

(i) Particulars of Related Parties, which control or are under common control withthe Company:

Name of the RName of the RName of the RName of the RName of the Relaelaelaelaelated Pted Pted Pted Pted Pa ra ra ra ra rt yt yt yt yt y N aN aN aN aN aturturturturture of Re of Re of Re of Re of Relaelaelaelaelationshiptionshiptionshiptionshiptionship


ACC Mineral Resources Limited(Formerly The Cement MarketingCompany of India Limited) Fellow Subsidiary Company

Lucky Minmat Limited Fellow Subsidiary Company

National LimestoneCompany Pvt Ltd Fellow Subsidiary Company w.e.f. April 20,2009.


Alcon Cement Company Private Limited. Associate Company of Holding Company fromApril 01, 2008

Ambuja Cement India Private Limited(formally known as AmbujaCement India Limited) Promoter Group Company of the Holding Company

Ambuja Cements Limited(formally known as Gujarat AmbujaCement Limited) Promoter Group Company of the Holding Company

Holderind Investments Limited Promoter Group Company of the Holding Company

Holcim (India) Private Limited Promoter Group Company of the Holding Company

Holcim Services (Asia) Limited Promoter Group Company of the Holding Company

Holcim (Bangladesh) Limited Promoter Group Company of the Holding Company

Holcim Group Support Limited Promoter Group Company of the Holding Company

Holcim Singapore Limited Promoter Group Company of the Holding Company

Holcim Trading FZCO Promoter Group Company of the Holding Company

Holcim (Lanka) Limited Promoter Group Company of the Holding Company

P T Holcim Indonesia Tbk Promoter Group Company of the Holding Company

Holcim Services (South Asia) Limited Promoter Group Company of the Holding Company

Holcim Foundation Promoter Group Entity of the Holding Company

Holcim Limited Promoter Group Company of the Holding Company

Siam City Concrete Co. Limited Promoter Group Company of the Holding Company

Siam City Cement Public Company Limited Promoter Group Company of the Holding Company

National Cement Factory Promoter Group Company of the Holding Company

(ii) Key Management Personnel

Mr. RBS Bir(Upto 22nd October, 2009) Head BCCI

Mr K.R.K. Prusty(w.e.f 23rd October, 2009) Head BCCI

(iii) Transactions with Related Parties during the year

Description of Transactions Holding CompanyACC Limited


Rs. Lac Rs. Lac

a) Rendering of Services 750.59 711.08

b) Deputation Charges 70.12 75.51

c) Reimbursement of Freight Rebate 377.26 406.25

d) Outstanding balance included inCurrent assets 175.48 97.97

e) Outstanding balance included inCurrent liabilities 13.17 13.17

f) Sale of store and spares - 1.75

g) Reimbursement of expenses paid(Net of reversal) .96 50.90

h) Reimbursement of expenses received 958.94 1,159.18

3.3.3.3.3. TTTTTaxaxaxaxaxaaaaationtiontiontiontion

a) The Company has been recognizing in the financial statements the deferredtax assets/liabilities, in accordance with Accounting Standard 22“Accounting for Taxes on Income” issued by the Institute of CharteredAccountants of India. During the year, the company has charged to theProfit & Loss Account with the Deferred Tax Liability of Rs. 91.32 Lac(Previous Year Rs. 61.84 Lac).

The year-end position is as follows:


2009 2008Rs. Lac Rs. Lac

Deferred Tax Liabilities:

Depreciation Differences 743.31 890.86

Deferred Tax Assets:

Unabsorbed Losses / Others 205.25 261.48

Net Deferred Tax Liabilities 538.06 629.38

4.4.4.4.4. EEEEEarnings per Shararnings per Shararnings per Shararnings per Shararnings per Shareeeee

Particulars For the year For the yearended ended


Rs. Lac Rs. Lac

Profit/(Loss) after taxation as perProfit and loss account (107.59) (52.50)

Weighted average number ofEquity shares outstanding 33642070 33642070

Basic earnings per Share(Weighted Average) in Rupees(face value - Rs. 10 per share) (.32) (.15)

(There are no potential equity shares and hence there is no working fordiluted earning per share).

5. The Company has received additional claims from Central railways in respectof wagon maintenance Charges calculated based on applicable inflation rateas per RBI norms at yearly rests which hitherto was calculated at 3 yearly restsw.e.f. Oct 97-June 09 amounting to Rs. 773.46 Lac. The Company has disputedclaim on such revised basis and the matter is being followed up with therailways. As against these claims, the company has already made a provisionas per its own computations of Rs. 730.11 Lac and has already paid that amountto the railways. The Company has further made a provision ofRs. 68.27 Lac on an estimated basis for the period from July 2009 toDec 2009 on 167 Wagons.

172

6.6.6.6.6. CCCCCONTONTONTONTONTIIIIINGENT LIABNGENT LIABNGENT LIABNGENT LIABNGENT LIABIIIIILITLITLITLITLITIIIIIES NOES NOES NOES NOES NOT PRT PRT PRT PRT PROOOOOVIVIVIVIVIDED FORDED FORDED FORDED FORDED FOR

Sr. Particulars As at As atNo. December 31, December 31,

2009 2008Rs. Lac Rs. Lac

1. Claim by Railway for MaintenanceCharges till 30 th June 2009 forprivately owned wagons bythe Company 43.35 -

2. Service Tax and Penalty 27.71 27.71

7.7.7.7.7. The benefit of credit against the payment made towards Minimum AlternateTax for the earlier years is available in accordance with the provision of Section115JAA over a period of subsequent seven assessment years and the same willbe accounted for when actually availed.

8.8.8.8.8. There are no Micro, Small and Medium Enterprises, as defined in the Micro,Small, Medium Enterprises Development Act, 2006, to whom the Companyowes dues on account of principle amount together with interest andaccordingly no additional disclosures have been made.

The above information regarding Micro, Small and Medium Enterprises hasbeen determined to the extent such parties have been identified on the basisof information available with the Company. This has been relied upon by theauditors.

9.9.9.9.9. ADDITADDITADDITADDITADDITIONAL IIONAL IIONAL IIONAL IIONAL INNNNNFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO O O O O TTTTTHHHHHE PRE PRE PRE PRE PROOOOOVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PVISIONS OF PARARARARARAAAAAGRGRGRGRGRAPHAPHAPHAPHAPH3 & 4 OF P3 & 4 OF P3 & 4 OF P3 & 4 OF P3 & 4 OF PARARARARART IT IT IT IT II OF SCI OF SCI OF SCI OF SCI OF SCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHE CE CE CE CE COOOOOMPMPMPMPMPANANANANANIIIIIES AES AES AES AES ACTCTCTCTCT, 1956., 1956., 1956., 1956., 1956.

Sr. Particulars For the year ended For the year endedNo December 31, 2009 December 31, 2008

% Rs. Lac % Rs. Lac

1. Spares Parts Consumed:

Indigenous 100 69.31 100 116.63

}

10.10.10.10.10. PPPPPAAAAAYYYYYMENT MENT MENT MENT MENT TTTTTO AO AO AO AO AUUUUUDITDITDITDITDITORORORORORSSSSS

Sr. Particulars For the year For the yearNo ended ended


Rs. Lac Rs. Lac

(a) Audit Fees 2.00 2.00

(b) Fees for Tax Audit 1.20 1.00

(c) Fees for Other Services 1.80 1.50

(d) Reimbursement of Expenses - 0.07

11.11.11.11.11. Previous year’s figures have been regrouped / rearranged wherever necessaryto make them comparable with the current year’s figures.

Signatures to Schedules 1 to 12





173






IIIIII.I.I.I.I. CCCCCapital rapital rapital rapital rapital raised during the yaised during the yaised during the yaised during the yaised during the yearearearearear


N i l N i l


N i l N i l

IIIIIIIIIII.I.I.I.I. PPPPPosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisaosition of Mobilisation and tion and tion and tion and tion and DDDDDeeeeevvvvvelopmenelopmenelopmenelopmenelopmenttttt of F of F of F of F of Fundsundsundsundsunds

(Amount in Rs. Lac)

Total Liabilities* Total Assets

5 7 9 2 . 0 8 5 7 9 2 . 0 8



3 3 6 4 . 2 1 9 9 3 . 2 3

Deferred Tax Liability

5 3 8 . 0 6



4 5 9 8 . 1 2 8 0 0 . 0 0


( 5 0 2 . 6 2 ) N i l

Accumulated Losses

N i l

IVIVIVIVIV..... PPPPPerererererffffformance of Cormance of Cormance of Cormance of Cormance of Companompanompanompanompany / (Amouny / (Amouny / (Amouny / (Amouny / (Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)

Turnover** Total Expenditure

1 2 0 2 . 8 9 1 3 9 8 . 5 8

PrPrPrPrProfitofitofitofitofit / L / L / L / L / Loss oss oss oss oss BBBBBefefefefefororororore e e e e TTTTTaxaxaxaxax PrPrPrPrProfitofitofitofitofit / L/ L/ L/ L/ Loss oss oss oss oss AAAAAfffffter ter ter ter ter TTTTTaxaxaxaxax

----- 1 9 5 . 6 9 - 1 0 7 . 5 8

Earning per share (in Rs.)*** For Share of Rs. 10.00 each Dividend Rate %

( 0 . 3 2 ) N i l

VVVVV..... Generic name of thrGeneric name of thrGeneric name of thrGeneric name of thrGeneric name of three ee ee ee ee PPPPPrincipal Prrincipal Prrincipal Prrincipal Prrincipal Producoducoducoducoducts/Serts/Serts/Serts/Serts/Services of Cvices of Cvices of Cvices of Cvices of Companompanompanompanompanyyyyy(((((as per monetaras per monetaras per monetaras per monetaras per monetary termsy termsy termsy termsy terms)))))

Item Code No. (ITC Code) 2 5 2 3 0 0

Product Description T R A D I N G I N C E M E N T

T R A N S P O R T A T I O N &

D I S T R I B U T I O N O F

B U L K C E M E N T* Including Share Holders’ Fund** Including Other Income*** Refer Note 4 Schedule 12

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TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFLLLLLUCUCUCUCUCKKKKKY MIY MIY MIY MIY MINMNMNMNMNMAAAAAT LIMITT LIMITT LIMITT LIMITT LIMITEDEDEDEDED

1 The Directors hereby present the Thirty Fourth Annual Reporton the business and operations of the Company and the AuditedAccounts for the year ended December 31, 2009.


PARTICULARS For the year ended For the year endedDecember 31, 2009 December 31, 2008

Rs. Lac Rs. Lac

Sale of Products, Services and

Other Income 18,488,149 925,986

Loss Before Tax (1,542,750) (2,223,303)


- Current Tax - -

- Deferred Tax -

- Fringe Benefits Tax 22,260 -

Loss after Taxation (1,565,010) (2,223,303)

Balance brought forward fromPrevious year (4,525,792) (2,302,489)

Balance carried forward toBalance Sheet (6,090,802) (4,525,792)


The Company resumed full operations during the year 2009.The total dispatches for the year ended December 31, 2009were 110716 MT as compared to 5665 MT for the year endedDecember 31, 2008.

The Company has incurred a loss before tax of Rs. 15,42,750 for theyear ended December 31, 2009 as compared to a loss of Rs. 22,23,303for the year ended December 31, 2008. The loss after tax for theyear ended December 31, 2009 is Rs. 15,65,010 as compared to aloss of Rs. 22,23,303 for the year ended December 31, 2008.

4. DIVIDIVIDIVIDIVIDIVIDENDENDENDENDENDDDDD

Your Directors do not recommend any dividend for the financialyear ended December 31, 2009.




There was no technology absorption and no foreign exchangeearnings or outgo during the year under review. Hence theinformation as required under Section 217(1)(e) of the CompaniesAct 1956, read with the Companies (Disclosure of Particulars inthe Report of the Board of Directors) Rules, 1988, is NIL.

The Company has not entered into any technology transferagreement.


The Company has not employed any individual whoseremuneration falls within the purview of the limits prescribedunder the provisions of Sec 217 (2A) of the Companies Act, 1956,read with the Companies (Particulars of Employees) Rules, 1975.


Mr A Anjeneyan who was appointed as a Director of theCompany with effect from December 30, 2008, resigned fromthe Board of Directors of the Company with effect from July16, 2009. The Board has placed on record its appreciation ofthe valuable services rendered by Mr. A. Anjeneyan as a Directorof the Company.

The Board of Directors has appointed Mr. S. K. Das and Mr. B. D.Nariman as Additional Directors of the Company with effectfrom July 16, 2009 and January 27, 2010 respectively. AsAdditional Directors, Mr. Das and Mr. Nariman hold office tillthe date of the forthcoming Annual General Meeting.Accordingly their candidature for appointment is included atItems 4 & 5 of the Notice.

In accordance with the provisions of the Companies Act, 1956,Mr. Sankarsan Dasgupta retires by rotation and is eligible forreappointment.



i) that in the preparation of the Accounts for the year endedDecember 31, 2009, the applicable accounting standardshave been followed along with proper explanation relatingto material departures, if any,

ii) that such accounting policies as mentioned in the Note 1of the Notes to the Accounts have been selected andapplied consistently and judgements and estimates thatare reasonable and prudent made so as to give a true andfair view of the state of the affairs of the Company as atDecember 31, 2009, and of the profit of the Company forthe year ended on that date,


iv) that the accounts for the year ended December 31, 2009,have been prepared on a going concern basis.

10. AAAAAUUUUUDIT CDIT CDIT CDIT CDIT COOOOOMMITTMMITTMMITTMMITTMMITTEEEEEEEEEE

The paid up Share Capital of the Company is less than RupeesFive Crore and hence the Company is not required to constitutean Audit Committee under the provisions of Section 292A ofthe Companies Act, 1956.

LLLLLUCUCUCUCUCKKKKKY MIY MIY MIY MIY MINMNMNMNMNMAAAAAT LIMITT LIMITT LIMITT LIMITT LIMITEDEDEDEDEDDIRECTORS’ REPORT

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11. SECSECSECSECSECRRRRRETETETETETARARARARARIAL AIAL AIAL AIAL AIAL AUUUUUDITDITDITDITDIT

Pursuant to the provisions of Section 383A of the CompaniesAct, 1956, the Company has obtained certificate from PramodS. Shah and Associates, Practising Company Secretaries, thatthe Company has complied with the provisions of theCompanies Act, 1956. As required by the said Section thecertificate is attached to this report.

12. AAAAAUUUUUDITDITDITDITDITORORORORORSSSSS

M/s. K S Aiyar & Co., Mumbai, the existing Auditors have underSection 224 (1B) of the Companies Act, 1956, furnished thecertificate of their eligibility for re-appointment. The Membersare requested to re-appoint them as Auditors of the Companyfor the year 2010 on a remuneration to be decided by the Boardof Directors.

13. AAAAACCCCCKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

Your Directors take this opportunity to express theirappreciation of the excellent co-operation received from theGovernment and Company’s Bankers. Your Directors alsoacknowledge the unstinting assistance and support receivedfrom ACC Limited, its holding Company and all the employeesfor their valuable contribution during the year.


B. D. NarimanChairman

January 27, 2010

Registered Office:G -9/C Kabir Marg,Bani Park,Jaipur 302 016

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CCCCCompliance Compliance Compliance Compliance Compliance Cererererertificatificatificatificatificatetetetete

U/S 383A of the Companies Act, 1956 & Rule 3 of the Companies (Compliance Certificate) Rules, 2001

TTTTTooooo,,,,, Nominal CNominal CNominal CNominal CNominal Capital : 3,25,00,000/-apital : 3,25,00,000/-apital : 3,25,00,000/-apital : 3,25,00,000/-apital : 3,25,00,000/-The MembersThe MembersThe MembersThe MembersThe Members,,,,, RRRRRegistregistregistregistregistraaaaation Notion Notion Notion Notion No. : 11 - 001697. : 11 - 001697. : 11 - 001697. : 11 - 001697. : 11 - 001697LuckLuckLuckLuckLucky Minmay Minmay Minmay Minmay Minmattttt Limited Limited Limited Limited Limited (31/12/2009)(31/12/2009)(31/12/2009)(31/12/2009)(31/12/2009)

I / We have examined the registers, records, books and papers of M/M/M/M/M/s. Lucks. Lucks. Lucks. Lucks. Lucky Minmay Minmay Minmay Minmay Minmattttt Limited Limited Limited Limited Limited (the Company) as required to be maintainedunder the Companies Act 1956, (the Act) and the rules made thereunder and also the provisions contained in the Memorandum andArticles of Association of the Company for the financial year ended on 3131313131ststststst December December December December December, 2009., 2009., 2009., 2009., 2009. In my/our opinion and to the best of my/ourinformation and according to the examinations carried out by me/us and explanations furnished to me/us by the Company, its officers andagents, I/we certify that in respect of the aforesaid financial year:

1. The Company has kept and maintained all registers as stated in AnneAnneAnneAnneAnnexxxxxururururure ‘e ‘e ‘e ‘e ‘AAAAA’’’’’ to this certificate, as per the provisions and the rulesmade thereunder and all entries therein have been duly recorded

2. The Company has duly filed the forms and returns as stated in AnneAnneAnneAnneAnnexxxxxururururure ’B’e ’B’e ’B’e ’B’e ’B’ to this certificate, with the Registrar of Companies,Regional Director, Central Government, Company Law Board or other authorities within the time prescribed under the Act and therules made thereunder.

3. The Company being a Public Limited Company, comments are not required

4. The Board of Directors duly met 44444 times on 28.01.2009,28.01.2009,28.01.2009,28.01.2009,28.01.2009, 17.04.2009, 16.07.2009 and 23.11.200917.04.2009, 16.07.2009 and 23.11.200917.04.2009, 16.07.2009 and 23.11.200917.04.2009, 16.07.2009 and 23.11.200917.04.2009, 16.07.2009 and 23.11.2009 in respect of which meetingsproper notices were given and the proceedings were properly recorded and signed including the circular resolution passed in theminutes books maintained for the purpose.

5. The Company has not closed its Register of Members during the financial year under review.

6. The Annual General Meeting for the year ended on 31.12.2008 31.12.2008 31.12.2008 31.12.2008 31.12.2008 was held on 25.03.2009 25.03.2009 25.03.2009 25.03.2009 25.03.2009 after giving due notice to the Members of theCompany and the resolutions passed thereat were duly recorded in Minutes Book maintained for the purpose.

7. No Extraordinary General Meeting was held during the financial year.

8. The Company has not advanced any loans to its Directors or persons or firms or Companies referred under Section 295 of the Act.

9. The Company has not entered into any contracts falling within the purview of Section 297 of the Act.

10. The Company was not required to make any entries in the register maintained under Section 301 of the Act.

11. As there were no instances falling within the purview of Section 314 of the Act, the Company has not obtained any approvals from theBoard of Directors, Members or Central Government.

12. No duplicate Share Certificates were issued during the year under review.

13. The Company:

i. has delivered all the certificates on allotment of securities and on lodgment thereof for transfer in accordance with the provisionsof the Act.

ii. has not deposited any amount in a separate Bank Account as no dividend was declared during the financial year.

iii. has not posted warrants to any members of the Company as no dividend was declared during the financial year under review.

PrPrPrPrPramod Samod Samod Samod Samod S. Shah. Shah. Shah. Shah. Shah Mani Bhuwan, 1st Floor, Office No. 5, 54, Hughes RoadB.A., B.Com., L.L.B., F.C.S., S.E.O. (Opp : Dharam Palace), Mumbai - 400 007 (India)Mobile : 98211 06217 Tel.: (O) +91 (022) 2368 2139, 6571 8741, 6571 1741, 2367 8570Mobile : 98211 06410 Fax : +91 (022) 2367 8571

E-mail : [email protected]

PRPRPRPRPRAAAAAMMMMMOD SOD SOD SOD SOD S. SHAH & A. SHAH & A. SHAH & A. SHAH & A. SHAH & ASSOSSOSSOSSOSSOCCCCCIAIAIAIAIATTTTTESESESESESPrPrPrPrPracacacacactising Ctising Ctising Ctising Ctising Companompanompanompanompany Secry Secry Secry Secry Secretariesetariesetariesetariesetaries

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iv. was not required to transfer any amount to Investor Education & Protection Fund.

v. has duly-complied with the requirements of Section 217 of the Act regarding Boards’ report.

14. The Board of Directors of the Company is duly constituted and the appointment of Additional Directors during the financial year hasbeen fully made and there was no appointment of Alternate Director and Director to fill Casual Vacancy during the year under review.

15. The Company has not appointed any Managing Director / Whole time Director / Manager under Section 269 of the Companies Act,1956 during the financial year under review.

16. The Company has not appointed any sole-selling agents during the financial year.

17. The Company was not required to obtain any approvals of the Central Government, Company Law Board, Regional Director, Registrarand / or such other authorities prescribed under the various provisions of the Act during the financial year.

18. The Directors have disclosed their interest in other firms/Companies to the Board of Directors pursuant to the provisions of the Actand the rules made thereunder.

19. The Company has not issued any shares, debentures or other securities during the financial year .

20. The Company has not bought back any shares during the financial year.

21. There was no redemption of Preference Shares or Debentures during the financial year.

22. There were no transactions, which required the Company to keep in abeyance rights to dividend, rights shares and bonus sharespending registration of transfer of shares.

23. The Company has not invited any deposits falling within purview of Section 58A during the financial year under review.

24. The Company has not made any borrowings during the financial year ended 31st December, 2009.

25. The Company has not made any loans or advances or given guarantees or provided securities to other bodies corporate and consequentlyno entries have been made in the register kept for the purpose.

26. The Company has not altered the provisions of the Memorandum with respect to the situation of the Company’s Registered Officefrom one state to another state during the year under scrutiny.

27. The Company has not altered the provisions of the Memorandum with respect to the Objects of the Company during the year underscrutiny.

28. The Company has not altered the provisions of the Memorandum with respect to Name of the Company during the year underscrutiny.

29. The Company has not altered the provisions of the Memorandum with respect to Share Capital of the Company during the year underscrutiny.

30. The Company has not altered the provisions of its Articles of Association during the financial year.

31. There were no prosecution initiated against or show cause notices received by the company and no fines or penalties or any otherpunishment imposed on the Company during the financial year, for offences under the Act.

32. The Company has not received any money as security from its employees during the financial year.

33. The Company has deposited both employee’s and employer’s contribution to Provident Fund with the prescribed authorities pursuantto Section 418 of the Act.

Place : Mumbai Signature :Date : 25.01.2010 Name of Company Secretary : Pramod S. Shah

C.P.No. : 3804

178

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AnneAnneAnneAnneAnnexxxxxururururure Ae Ae Ae Ae A

The Company has been maintaining the statutory records such as:

1) Minutes Book (Board Meeting)

2) Minutes Book (AGM & EGM)

3) Register of Member

4) Register of Directors

5) Register of Director’s Shareholding

6) Register of Investment

7) Register of Charges

8) Register of Contracts

9) Register of Share Transfer

10) Register of Application and Allotment

11) Register of Common Seal

AnneAnneAnneAnneAnnexxxxxururururure Be Be Be Be B

Forms and Returns as filed by the Company with the Registrar of Companies, Regional Director, Central Government or other authoritiesduring the financial year ending on 3131313131ststststst December December December December December, 2009., 2009., 2009., 2009., 2009.

SrSrSrSrSr..... FFFFForm Noorm Noorm Noorm Noorm No. /. /. /. /. / FFFFFiled u/iled u/iled u/iled u/iled u/sssss FFFFFororororor DaDaDaDaDate of Fte of Fte of Fte of Fte of Filingilingilingilingiling Whether Whether Whether Whether Whether If delaIf delaIf delaIf delaIf delay iny iny iny iny inNoNoNoNoNo..... RRRRReturneturneturneturneturn filed withinfiled withinfiled withinfiled withinfiled within filingfilingfilingfilingfiling

prprprprprescribedescribedescribedescribedescribed whetherwhetherwhetherwhetherwhethertime time time time time YYYYYes/Noes/Noes/Noes/Noes/No rrrrrequisiteequisiteequisiteequisiteequisite

additionaladditionaladditionaladditionaladditionalfffffee paidee paidee paidee paidee paidYYYYYes/Noes/Noes/Noes/Noes/No

1 Form 23AC & 220 31/12/2008 03/04/2009 Yes NAACA (Balance Sheet)

2 Form 20B 159 25/03/2009 17/04/2009 Yes NA(Annual Return)

3 Form 2 75 (1) Allotment of 3,09,900 Equity shares 19/01/2009 Yes NA@ Rs100 /-each.

4 Form 32 303(2) Appointment of Mr. Anjeneyanas an 9/01/2009 Yes NAAdditional Director w.e.f. 30/12/2008

5 Form 32 303(2) Regularising the appointment of 02/04/2009 Yes NAMr. Anjeneyan w.e.f.25/03/2009

6 Form 32 303 (2) Resignation of Mr. Anjeneyan & Appointment 27/07/2009 Yes NAof Mr. Sudhir Kumar Das as an AdditionalDirector w.e.f. 16/07/2009

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TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OF LS OF LS OF LS OF LS OF LUCUCUCUCUCKKKKKY MIY MIY MIY MIY MINMNMNMNMNMAAAAAT LIMITT LIMITT LIMITT LIMITT LIMITEDEDEDEDED

1. We have audited the attached Balance Sheet of LUCKY MINMATLIMITED, as at December 31, 2009, and also the Profit and LossAccount and the Cash Flow Statement for the year ended onthat date annexed thereto. These financial statements are theresponsibility of the Company’s management. Our responsibilityis to express an opinion on these financial statements basedon our audit.








e) on the basis of the written representations received fromthe directors, as on December 31, 2009, and taken onrecord by the Board of Directors, we report that none ofthe directors of the Company are disqualified as onDecember 31, 2009 from being appointed as a director, interms of clause (g) of sub-section (1) of Section 274 of theCompanies Act, 1956;

f) in our opinion and to the best of our information andaccording to the explanations given to us, the said accountsgive the information required by the Companies Act, 1956,

in the manner so required and give a true and fair view inconformity with the accounting principles generallyaccepted in India:





Raghuvir M. AiyarPlace: Mumbai PartnerDate: January 27, 2010 Membership No.: 38128

ANANANANANNNNNNEEEEEXXXXXUUUUURRRRRE E E E E TTTTTO O O O O TTTTTHHHHHE AE AE AE AE AUUUUUDITDITDITDITDITORORORORORS’S’S’S’S’ R R R R REPEPEPEPEPORORORORORTTTTT

(Referred to in paragraph 3 of our Report of even date on theAccounts for the year ended December 31, 2009 of LUCKY MINMATLIMITED)

(i) (a) The Company has maintained proper records showingfull particulars including quantitative details andsituation of fixed assets.

(b) The fixed assets are physically verified by themanagement during the year and in our opinion thefrequency of verification is reasonable having regard tothe size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such physicalverification.

(c) No fixed assets are disposed off during the year.

(ii) (a) The inventories have been physically verified during theyear by the management. In our opinion, the frequencyof verification is reasonable.

(b) The procedures of physical verification of inventoriesfollowed by the management are reasonable andadequate in relation to the size of the Company and thenature of its business.




AUDITORS’ REPORT

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(iv) In our opinion and according to the information andexplanations given to us, there is an adequate internal controlsystem commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixedassets and for the sale of goods and services. During thecourse of our audit, no major weakness has been noticed inthe internal control system in respect of these areas.

(v) (a) Based upon the audit procedures performed andaccording to the information and explanations given tous, there are no contracts or arrangements that need tobe entered into the register maintained in pursuance ofSection 301 of the Companies Act, 1956. Accordingly, sub-clause (b) is not applicable.

(vi) The Company has not accepted any deposits from the publicto which the provisions of section 58A, 58AA, or any otherrelevant provisions of the Companies Act, 1956 and theCompanies (Acceptance of Deposit) Rules 1975 apply.

(vii) In our opinion the company has an Internal audit systemcommensurate with the size and nature of its business.

(viii) The Central Government has not prescribed the maintenanceof cost records under section 209 (1) (d) of the CompaniesAct, 1956.

(ix) (a) According to the records of the Company, Provident Fund,Investor Education and Protection Fund, Employees’ StateInsurance, Income tax, Sales tax, Wealth tax, Service tax,Custom duty, Excise duty, cess and other materialstatutory dues applicable to it have been generallyregularly deposited during the year with the appropriateauthorities.According to the information andexplanations given to us, there are no undisputed duesin respect of provident fund, investor education andprotection fund, employees’ state insurance, income-tax,wealth-tax, service tax, sales-tax, customs duty, exciseduty, cess and other statutory dues which wereoutstanding, at the year end for a period of more thansix months from the date they became payable.


(x) The Company has accumulated losses at the end of thefinancial year and has incurred cash losses during the financialyear covered by our audit and in the immediately precedingfinancial year.

(xi) According to the information and explanations given to us,the Company has not taken any money from financialinstitution, bank or debenture holders and hence clause 4(xi)is not applicable.

(xii) Based on our examination of the records and the informationand explanations given to us, the Company has not grantedany loans and advances on the basis of security by way ofpledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore, the provisions ofclause 4 (xiii) of the Order are not applicable to the Company.


(xv) According to the information and explanations given to us,the Company has not given guarantee for loans taken byothers from bank or financial institutions.

(xvi) The company has not raised any term loans during the year.




(xx) The Company has not raised any money by way of publicissue during the year. Therefore, the provision of clause (xx)of the order is not applicable to the Company.




181

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2009 2008



SharSharSharSharShareholders’eholders’eholders’eholders’eholders’ F F F F Funds :unds :unds :unds :unds :Share Capital 1 32,500,000 32,500,000Reserves and Surplus 2 834,918 834,918

33,334,918 33,334,918

TTTTTOOOOOTTTTTAL FAL FAL FAL FAL FUUUUUNNNNNDSDSDSDSDS 33,334,918 33,334,918

APPLICAPPLICAPPLICAPPLICAPPLICAAAAATTTTTION OF FION OF FION OF FION OF FION OF FUUUUUNNNNNDS :DS :DS :DS :DS :FFFFFixixixixixed Assets :ed Assets :ed Assets :ed Assets :ed Assets : 3Gross Block 445,456 388,076Less: Accumulated Depreciation 390,895 388,076

Net Block 54,561 -

InInInInInvvvvvestmenestmenestmenestmenestmentststststs 4 20,850 20,850

CurrCurrCurrCurrCurrenenenenenttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans oans oans oans oans aaaaand Advnd Advnd Advnd Advnd Advances :ances :ances :ances :ances :Inventory 5 59,416 -Sundry Debtors 6 - -Cash and Bank Balances 7 32,687,253 32,522,878Other Current Assets 8 764,803 656,882Loans and Advances 9 2,668,211 988,527

36,179,683 34,168,287

LLLLLess : Curress : Curress : Curress : Curress : Currenenenenenttttt Liabilities Liabilities Liabilities Liabilities Liabilities aaaaand Prnd Prnd Prnd Prnd Prooooovisions :visions :visions :visions :visions :Current Liabilities 10 8,146,478 4,515,511Provisions 11 864,500 864,500

9,010,978 5,380,011

NetNetNetNetNet Curr Curr Curr Curr Currenenenenenttttt Assets Assets Assets Assets Assets 27,168,705 28,788,276

PrPrPrPrProfitofitofitofitofit & L & L & L & L & Loss Accoss Accoss Accoss Accoss Accounounounounounttttt 6,090,802 4,525,792

TTTTTOOOOOTTTTTAL AAL AAL AAL AAL ASSETSSETSSETSSETSSETS (NS (NS (NS (NS (NETETETETET))))) 33,334,918 33,334,918

Notes Notes Notes Notes Notes TTTTTo Acco Acco Acco Acco Accounounounounountststststs 15

The schedules referred to above and notes to accounts form an integral part of theBalance Sheet

As per our report of even date For and on behalf of the Board of Lucky Minmat Limited,

For K. S. Aiyar & Co. M. K. Mishra ChairmanChartered Accountants S. K. Das

S. Das Gupta DirectorsK. M. Gupta

Raghuvir M. AiyarPartnerMembership No.: 38128

Mumbai, January 27, 2010 Mumbai, January 27, 2010

}




IIIIINCNCNCNCNCOOOOOMEMEMEMEMESale Of Products And Services (Gross) 18,488,149 925,986Less - Excise Duty - -

Sale Of Products And Services (Net) 18,488,149 925,986Other Income (Interest) 12 1,524,951 133,203

20,013,100 1,059,189

EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRREEEEEManufacturing and Other Expenses 13 21,866,633 3,491,827Depreciation & Amortisation 2,819 132,937Interest 14 117,964 72,972

21,987,416 3,697,736

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxaxaaaaation and Etion and Etion and Etion and Etion and Exxxxxceptional itemsceptional itemsceptional itemsceptional itemsceptional items (1,974,316)(1,974,316)(1,974,316)(1,974,316)(1,974,316) (2,638,547)(2,638,547)(2,638,547)(2,638,547)(2,638,547)

Previous Year adjustment 431,566 415,244

PrPrPrPrProfitofitofitofitofit bef bef bef bef befororororore e e e e TTTTTaxaxaxaxaxaaaaation buttion buttion buttion buttion but af af af af after Eter Eter Eter Eter Exxxxxceptional itemsceptional itemsceptional itemsceptional itemsceptional items (1,542,750)(1,542,750)(1,542,750)(1,542,750)(1,542,750) (2,223,303)(2,223,303)(2,223,303)(2,223,303)(2,223,303)

PrPrPrPrProoooovision Fvision Fvision Fvision Fvision For or or or or TTTTTaxaxaxaxaxaaaaationtiontiontiontionCurrent Tax - -Deferred Tax (Income) - -Fringe Benefit Tax 22,260 -

22,260 -

PrPrPrPrProfitofitofitofitofit A A A A Afffffter ter ter ter ter TTTTTaxaxaxaxaxaaaaationtiontiontiontion (1,565,010)(1,565,010)(1,565,010)(1,565,010)(1,565,010) (2,223,303)(2,223,303)(2,223,303)(2,223,303)(2,223,303)

Balance brought forward from Previous Year (4,525,792) (2,302,489)

Balance carried to Balance Sheet (6,090,802) (4,525,792)

Basic & Diluted Earnings Per Share Rupees (4.82) (132.39)

Notes to AccNotes to AccNotes to AccNotes to AccNotes to Accounounounounountststststs 15

The schedules referred to above and Notes to accounts form an integral part of the Profitand Loss Account






}

BALANCE SHEET AS AT DECEMBER 31, 2009 PROFIT AND LOSS ACCOUNT FOR THE YEARENDED DECEMBER 31, 2009

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Rs. Rs.

A. Cash flow from operating activities

1. Net Profit / (Loss) before taxation (1,542,750) (2,223,303)

Adjustments for:

Depreciation 2,818 132,937

Sundry Balances written off - 46,094

Provisions written back - (4,300)

Provision for doubtful debts (295,057) 295,057

Provision for expenses - 214,858

Operating profit before working capital changes (1,834,989) (1,538,657)

2. Trade Receivables 295,057 249,597

3. Inventories (59,416) -

4. Other Receivables 369,651 (529,142)

5. Trade Payables 3,630,968 2,070,356

Cash generated from operations 2,401,271 252,154

6. Direct Taxes refund / (paid) (1,775,027) -

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities 626,244626,244626,244626,244626,244 252,154252,154252,154252,154252,154

B CASH FLOW FROM INVESTING ACTIVITIES

7. Interest received (404,490) -

8. Purchase of Fixed Assets (57,380) -

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from inom inom inom inom invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities (461,870)(461,870)(461,870)(461,870)(461,870) -----

C. CASH FLOW FROM FINANCING ACTIVITIES

9. Other current liabilities - 38,469

10. Issue of Shares - 30,990,000

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from financing acom financing acom financing acom financing acom financing activitiestivitiestivitiestivitiestivities ----- 31,028,46931,028,46931,028,46931,028,46931,028,469

Net increase / (decrease) in cash & cash equivalents 164,374 31,280,623

Cash & cash equivalents :

Opening Balance 32,522,878 1,242,255

Closing Balance 32,687,252 32,522,878






SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

AAAAAUUUUUTTTTTHORHORHORHORHORISED -ISED -ISED -ISED -ISED -325,000 (Previous Year - 325,000) 32,500,000 32,500,000

Equity Shares of Rs. 100 each

32,500,000 32,500,000


325,000 (Previous Year - 325,000)

Equity Shares of Rs. 100 each 32,500,000 32,500,000


325,000 (Previous Year - 325,000) 32,500,000 32,500,000

Equity Shares of Rs. 100 each

(All the Shares held by ACC Limited

the Holding Company and its nominees)

TOTAL 32,500,000 32,500,000

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2, RLE - 2, RLE - 2, RLE - 2, RLE - 2, RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

General Reserve 834,918 834,918

TOTAL 834,918 834,918

}

183

LMLLMLLMLLMLLML

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ASSETSSETSSETSSETSSETSSSSS(Rs. )(Rs. )(Rs. )(Rs. )(Rs. )

FIXED AFIXED AFIXED AFIXED AFIXED ASSETSSETSSETSSETSSETSSSSS GRGRGRGRGROSS BOSS BOSS BOSS BOSS BLLLLLOOOOOCCCCCK AK AK AK AK AT CT CT CT CT COSOSOSOSOSTTTTT TTTTTOOOOOTTTTTAL DEPRAL DEPRAL DEPRAL DEPRAL DEPRECECECECECIAIAIAIAIATTTTTION / AION / AION / AION / AION / AMMMMMORORORORORTTTTTISISISISISAAAAATTTTTIONIONIONIONION NNNNNETETETETETBBBBBLLLLLOOOOOCCCCCKKKKK

As aAs aAs aAs aAs attttt Additions /Additions /Additions /Additions /Additions / As aAs aAs aAs aAs attttt UptoUptoUptoUptoUpto FFFFFor theor theor theor theor the O nO nO nO nO n UptoUptoUptoUptoUpto As aAs aAs aAs aAs attttt As aAs aAs aAs aAs atttttDescriptionDescriptionDescriptionDescriptionDescription 31-12-200831-12-200831-12-200831-12-200831-12-2008 AdjustmenAdjustmenAdjustmenAdjustmenAdjustment st st st st s 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200831-12-200831-12-200831-12-200831-12-2008 YYYYYear endedear endedear endedear endedear ended DisposalsDisposalsDisposalsDisposalsDisposals 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200931-12-200931-12-200931-12-200931-12-2009 31-12-200831-12-200831-12-200831-12-200831-12-2008

31-12-200931-12-200931-12-200931-12-200931-12-2009

TTTTTangible Assets :angible Assets :angible Assets :angible Assets :angible Assets :Buildings 388,076 - 388,076 388,076 - - 388,076 - -Plant & Machinery (analytical balance) - 43,680 43,680 - 1,362 - 1,362 42,318 -Computer Printer - 13,700 13,700 - 1,457 - 1,457 12,243 -

388,076 57,380 445,456 388,076 2,819 - 390,895 54,561 -

Previous Year (388,076) - (388,076) (255,139) (132,937) - (388,076) - (132,937)

Schedule - 4, ISchedule - 4, ISchedule - 4, ISchedule - 4, ISchedule - 4, INVESNVESNVESNVESNVESTTTTTMENTMENTMENTMENTMENTSSSSS As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

OTHER INVESTMENTS

GOVERNMENT AND TRUSTEE SECURITIESNational Saving Certificates 20,850 20,850

TOTAL 20,850 20,850

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 5, ILE - 5, ILE - 5, ILE - 5, ILE - 5, INVENTNVENTNVENTNVENTNVENTORORORORORYYYYY As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

Stock of Explosive 59,416 -

TOTAL 59,416 -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6,LE - 6,LE - 6,LE - 6,LE - 6, SUSUSUSUSUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS As at As atDecember 31, December 31,

2009 2008

Rs. Rs. Rs.

SUNDRY DEBTORS (UNSECURED )

Over Six Months -Considered Good - -Considered Doubtful - 295,057

- 295,057Less: Provision made for Bad

and Doubtful Debts - 295,057

- -

TOTAL - -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7,LE - 7,LE - 7,LE - 7,LE - 7, CCCCCAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANKKKKK As at As atBBBBBALANCALANCALANCALANCALANCESESESESES December 31, December 31,

2009 2008

Rs. Rs.

Cash on Hand - 6,048Balance With Scheduled BanksIn Current Account 1,725,703 31,303,533In Fixed Deposits 30,908,166 1,176,703Balance With Non Scheduled BanksIn Current Account 36,594 36,594In Fixed Deposits 16,790 -

TOTAL 32,687,253 32,522,878

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE -LE -LE -LE -LE - 8 8 8 8 8, O, O, O, O, OTTTTTHHHHHER CUER CUER CUER CUER CURRRRRRRRRRENT AENT AENT AENT AENT ASSETSSETSSETSSETSSETSSSSS As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

Accrued Interest 539,254 134,765Prepaid Expense 225,549 522,117

TOTAL 764,803 656,882

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - LE - LE - LE - LE - 99999, L, L, L, L, LOOOOOANS ANANS ANANS ANANS ANANS AND ADD ADD ADD ADD ADVVVVVANCANCANCANCANCESESESESES As at As atDecember 31, December 31,

2009 2008

Rs. Rs. Rs.

(Unsecured, Considered Good,unless otherwise stated)Sundry Advances and Deposits, etc.

Security Deposit withholding company 100,000 100,000

Advances Recoverable incash or in kind or forvalue to be received - 73,083

100,000 173,083Advance Payments Against Taxes 2,568,211 815,444

TOTAL 2,668,211 988,527

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 10, CULE - 10, CULE - 10, CULE - 10, CULE - 10, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

Payable to Holding Company 7,760,567 4,163,586Other Current Liabilities 385,911 351,925

TOTAL 8,146,478 4,515,511

184

LMLLMLLMLLMLLML

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 11, PRLE - 11, PRLE - 11, PRLE - 11, PRLE - 11, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS As at As atDecember 31, December 31,

2009 2008

Rs. Rs.

Provision For Income Tax 850,000 850,000Provision For Fringe Benefit Tax 14,500 14,500

TOTAL 864,500 864,500

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, OLE - 12, OLE - 12, OLE - 12, OLE - 12, OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME For the For the

year ended year endedDecember 31, December 31,

2009 2008

Rs. Rs.

Interest Income on Fixed Deposit 1,524,951 133,203

TOTAL 1,524,951 133,203

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 13, MLE - 13, MLE - 13, MLE - 13, MLE - 13, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIINGNGNGNGNG For the For theANANANANAND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES year ended year ended


Rs. Rs. Rs.

MMMMMANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIING ENG ENG ENG ENG EXPENSESXPENSESXPENSESXPENSESXPENSESStores and Spares parts Consumed 1,119,101 154,200Power and Fuel (Diesel & Electricity) 73,032 10,600Repairs to Other Items 1,037,509Royalties 6,025,972 1,739,153Loading, Transportation,Mines Expenses and Other Charges 12,015,649 772,755

20,271,263 2,676,708PPPPPAAAAAYYYYYMENTMENTMENTMENTMENTS S S S S TTTTTO ANO ANO ANO ANO ANDDDDDPRPRPRPRPROOOOOVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLVISIONS FOR EMPLOOOOOYYYYYEESEESEESEESEESSalaries, Wages, DearnessAllowance and Bonus 22,500 -Contributions / Provisions to andfor Provident and Other FundsWorkmen and Staff Welfare Expenses 16,936 -

39,436 -ADADADADADMIMIMIMIMINNNNNISISISISISTTTTTRRRRRAAAAATTTTTIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLING ANNG ANNG ANNG ANNG ANDDDDDOOOOOTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSESRates and Taxes (Including SaleTax Expense & Cess) 388,606 917Insurance 13,090 7,674Travelling Expenses 432,379 -Bank Charges 26,258 -Advertisement 15,000 -Legal Expenses 91,168 -Stationary Expense 50,030 300Provision for Doubtful Debts - 295,057Misc. Expenses 439,403 25,577Auditors Remuneration 100,000 50,000Vehicle Expenses - 27,000

1,555,934 406,525Share issue expenses - 362,500Sundry Balances Written Off - 46,094

- -

TOTAL 21,866,633 3,491,827

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 14, ILE - 14, ILE - 14, ILE - 14, ILE - 14, INTNTNTNTNTERERERERERESESESESEST PT PT PT PT PAIAIAIAIAIDDDDD For the For theyear ended year ended


Rs. Rs.

Interest 117,964 72,972

TOTAL 117,964 72,972


Schedule –15, NOSchedule –15, NOSchedule –15, NOSchedule –15, NOSchedule –15, NOTTTTTES ES ES ES ES TTTTTO AO AO AO AO ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

1.1.1.1.1. SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIES ANES ANES ANES ANES AND NOD NOD NOD NOD NOTTTTTES FORMIES FORMIES FORMIES FORMIES FORMINGNGNGNGNGPPPPPARARARARART OF T OF T OF T OF T OF TTTTTHHHHH E AE AE AE AE ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTS FRS FRS FRS FRS FROOOOOM JM JM JM JM JANANANANANUUUUUARARARARARY 1, 2009 Y 1, 2009 Y 1, 2009 Y 1, 2009 Y 1, 2009 TTTTTOOOOODECDECDECDECDECEMBEMBEMBEMBEMBER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009ER 31, 2009

(A)(A)(A)(A)(A) Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontioni. The financial statements have been prepared to

comply in all material aspects in respect with theNotified Accounting Standard by CompaniesAccounting Standards Rules, 2006 and the relevantprovisions of the Companies Act, 1956.

ii. Financial statements are based on historical cost andare prepared on accrual basis, except whereimpairment is made and revaluation is carried out.

iii. Accounting policies have been consistently applied bythe Company.

(B)(B)(B)(B)(B) Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestesThe preparation of financial statements in conformity withgenerally accepted accounting principles requiresmanagement to make estimates and assumptions thataffect the reported amounts of assets and liabilities anddisclosure of contingent liabilities at the date of the financialstatements and the results of operations during thereporting period end. Although these estimates are basedupon management’s best knowledge of current events andactions, actual results could differ from these estimates.

(((((C)C)C)C)C) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognitionRevenue is recognized to the extent that it is probable thatthe economic benefits will flow to the Company and therevenue can be reliably measured.

i.i .i .i .i . Sale of goodsSale of goodsSale of goodsSale of goodsSale of goodsRevenue is recognised when the significant risks andrewards of ownership of the goods have passed tothe buyer. Domestic Sales are accounted on dispatchof products and are stated net of returns.Income from jobs and other services rendered isaccounted for as per the terms of contract.

ii.ii.ii.ii.ii. InInInInInterterterterterestestestestestRevenue is recognized on a time proportion basistaking into account the amount outstanding and therate applicable.

(D(D(D(D(D))))) FFFFFixixixixixed assetsed assetsed assetsed assetsed assetsFixed assets are stated at cost of acquisition or constructionincluding attributable interest and financial costs till suchassets are ready for its intended use, less accumulateddepreciation, impairment losses and specific grantsreceived, if any.

(E)(E)(E)(E)(E) DeprDeprDeprDeprDepreciaeciaeciaeciaeciationtiontiontiontionAll assets are depreciated on the straight line method atthe rates prescribed in Schedule XIV of the Companies Act,1956, on a pro-rata basis.

SCHEDULES FORMING PART OF THE BALANCE SHEET ANDPROFIT AND LOSS ACCOUNT

185

LMLLMLLMLLMLLML

(F)(F)(F)(F)(F) InInInInInvvvvvestmenestmenestmenestmenestmentststststsInvestments that are readily realizable and intended to beheld for not more than a year are classified as currentinvestments. All other investments are classified as long-term investments. Long-term investments are carried atcost. However, provision for diminution in value is madeto recognize a decline other than temporary in the valueof investments. Current investments are stated at cost orfair value whichever is lower, determined on an individualinvestment basis. Cost is determined on a weightedaverage basis.

(((((G)G)G)G)G) IncIncIncIncIncome taxome taxome taxome taxome taxesesesesesTax expense comprises of Current, Deferred and Fringebenefit tax. Current income tax and Fringe benefit tax ismeasured at the amount expected to be paid to the taxauthorities in accordance with the Indian Income Tax Act.Deferred income taxes reflects the impact of current yeartiming differences between taxable income and accountingincome for the year and reversal of timing differences ofearlier years.Deferred tax is measured based on the tax rates and thetax laws enacted or substantively enacted at the BalanceSheet date. Deferred tax assets are recognised only to theextent that there is reasonable certainty that sufficientfuture taxable income will be available against which suchdeferred tax assets can be realised. In situations wherethe company has unabsorbed depreciation or carry forwardtax losses, all deferred tax assets are recognised only ifthere is virtual certainty supported by convincing evidencethat they can be realised against future taxable profits.

(H)(H)(H)(H)(H) CCCCCononononontingencies / Prtingencies / Prtingencies / Prtingencies / Prtingencies / ProoooovisionsvisionsvisionsvisionsvisionsA provision is recognised when an enterprise has a presentobligation as a result of past event; it is probable that anoutflow of resources embodying economic benefit will berequired to settle the obligation, in respect of which areliable estimate can be made. Provisions are notdiscounted to its present value and are determined basedon best estimate required to settle the obligation at theBalance Sheet date. These are reviewed at each BalanceSheet date and adjusted to reflect the current bestestimates. A contingent liability is disclosed, unless thepossibility of an outflow of resources embodying theeconomic benefit is remote.

(I)(I)(I)(I)(I) EEEEEarnings per shararnings per shararnings per shararnings per shararnings per shareeeeeBasic earnings per share are calculated by dividing the netprofit or loss for the period attributable to equityshareholders by the weighted average number of equityshares outstanding during the period.

(((((J)J)J)J)J) SEGMENT RSEGMENT RSEGMENT RSEGMENT RSEGMENT REPEPEPEPEPORORORORORTTTTTIIIIINGNGNGNGNGThe Company is operating only in one significant businesssegment i.e. Extraction and sale of lime stone; hencesegment information as per Accounting Standard 17 is notrequired to be disclosed. The Company is catering mainlyto the need of the domestic market; as such there is noreportable Geographical Segments.

2.2.2.2.2. RRRRRELAELAELAELAELATTTTTED PED PED PED PED PARARARARARTY DISCTY DISCTY DISCTY DISCTY DISCLLLLLOSUOSUOSUOSUOSURRRRREEEEE(A)(A)(A)(A)(A) Particulars of Related Parties, which control or are under

common control with the Company:



Bulk Cement Corporation (India) Ltd. Fellow Subsidiary Company

ACC Mineral Resources Ltd (FormerlyThe Cement Marketing Companyof India Ltd) Fellow Subsidiary Company

Ambuja Cement India Private Limited Promoter Group Company

Ambuja Cements Limited Promoter Group Company

Alcon Cement Company Associate Company of HoldingPrivate Limited Company from April 01, 2008

National Limestone Co. Pvt. Ltd. Fellow Subsidiary Company w.e.f.April 20, 2009

Holderind Investments Limited Promoter Group Company

Holcim India (P) Limited Promoter Group Company

Holcim Service (Asia) Limited Promoter Group Company

Holcim (Bangladesh) Limited Promoter Group Company

Holcim Foundation Promoter Group Entity

Holcim (Lanka) Limited Promoter Group Company

PT Holcim Indonesia Tbk Promoter Group Company

Siam City Concrete Co. Limited Promoter Group Company

Siam City CementPublic Company Limited Promoter Group Company

National Cement Factory Promoter Group Company

Holcim Group Support Limited Promoter Group Company

Holcim Limited Promoter Group Company

Holcim Singapore Limited Promoter Group Company

Holcim Trading FZCO Promoter Group Company

Holcim Services(South Asia) Limited Promoter Group Company


For the For theYear ended Year endedDecember December

BBBBB TTTTTrrrrransacansacansacansacansaction with Holding Ction with Holding Ction with Holding Ction with Holding Ction with Holding Companompanompanompanompanyyyyy 31, 2009 31, 2008Rs. Lac Rs. Lac

(i) Sales of Finished / Unfinished goods toACC Limited(Net) 184.88 9.26

(ii) Transportation Services to ACC Limited 458.38 23.85

(iiii) TDS / VAT / Service Tax / Royalty Paidon behalf of Lucky Minmat Limitedby ACC Limited 31.70 23.84

(iv) Outstanding Credit balance to ACC Limited 77.60 7.07

(v) Security Deposit with ACC Limited 1.00 1.00

(vi) Amount received against share capitalissued, from ACC Limited Nil 309.9

186

LMLLMLLMLLMLLML

3.3.3.3.3. EEEEEARARARARARNNNNNIIIIINGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARE-[EPE-[EPE-[EPE-[EPE-[EPS]S]S]S]S]Particulars For the year For the year

ended endedDecember 31, December 31,

2009 2008

Rs. Lac Rs. Lac

Profit / (Loss) after taxation as perProfit & Loss Account in Rupees Lacs (15.65) (22.23)

Weighted average number ofEquity Shares Outstanding 325000 16793

Basic earnings per share(weighted average) in Rupees (4.82) (132.39)(Face Value – Rs 100 per share)(Basic and Diluted EPS are same)

4.4.4.4.4. GenerGenerGenerGenerGeneral description of leasing arral description of leasing arral description of leasing arral description of leasing arral description of leasing arrangemenangemenangemenangemenangementtttt

LLLLLeased Assetseased Assetseased Assetseased Assetseased Assets: Mining Rights

(a) Future lease rental payments are determined on the basis ofMinimum Rent payments or Royalty per ton of extractedlimestone whichever is higher, as per the agreement.

(b) Lease payment recognized in the Profit & Loss AccountRs. 60.26 Lac based on actual production of 110,716 MT


No provision for current tax is made in view of the losses for theyear. Ultimately the Tax liability of the company would bedetermined on the basis of its results for the fiscal year endingMarch 31, 2010.

In view of carried forward losses, the Company has deferred taxassets; however, as a matter of prudence and in view of theabsence of virtual certainty of future taxable income, the samehas not been recognized in the financial statements.

6. There are no Micro, Small and Medium Enterprises, as defined inthe Micro, Small, Medium Enterprises Development Act, 2006 towhom the Company owes dues on account of principle amounttogether with interest and accordingly no additional disclosureshave been made.

The above information has been determined to the extent suchparties have been identified on the basis of information availablewith the Company. This has been relied upon by the auditors.

7.7.7.7.7. PPPPPaaaaaymenymenymenymenymenttttt to sta to sta to sta to sta to statutortutortutortutortutory Ay Ay Ay Ay Auditorsuditorsuditorsuditorsuditors

Particulars For the Year For the Yearended ended


Audit Fees 100,000 50,000For other services(Limited Review etc.) 125,000 -

TOTAL 225,000 50,000

8.8.8.8.8. ADDITADDITADDITADDITADDITIONAL IIONAL IIONAL IIONAL IIONAL INNNNNFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO O O O O TTTTTHHHHHE PRE PRE PRE PRE PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONSOF POF POF POF POF PARARARARARAAAAAGRGRGRGRGRAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PARARARARART IT IT IT IT II OF SCI OF SCI OF SCI OF SCI OF SCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHEEEEECCCCCOOOOOMPMPMPMPMPANANANANANIIIIIES AES AES AES AES ACTCTCTCTCT, 1956, 1956, 1956, 1956, 1956

(A) Sales by class of goods (Net)(A) Sales by class of goods (Net)(A) Sales by class of goods (Net)(A) Sales by class of goods (Net)(A) Sales by class of goods (Net)

Unit For Year ended For Period ended

December 31, 2009 December 31, 2008


Lime Stone Metric. Tons 110,716 184.88 5,665 9.26

Total 110,716 184.88 5,665 9.26

(B)(B)(B)(B)(B) PPPPParararararticulars of Licensed, installed capacity and prticulars of Licensed, installed capacity and prticulars of Licensed, installed capacity and prticulars of Licensed, installed capacity and prticulars of Licensed, installed capacity and producoducoducoducoductiontiontiontiontionof Limestoneof Limestoneof Limestoneof Limestoneof Limestone

Current PreviousYear Year

Licensed Capacity (MT per day) 600 600

Installed Capacity* (MT per day) 600 600

Actual Productions-During the Year 110,716 MT 5,665 MT

*As certified by management and accepted by the Auditors

9. Provision for Site Restoration expenses has not been made in theaccounts, pending removal of the overburden rejects.

10.Previous year’s figures are regrouped / restated wherevernecessary to make them comparable with current year’s figures.






}

187

LMLLMLLMLLMLLML



Registration No. U 14219RJ1976PLC001697 State Code 1 7

Balance Sheet Date 3 1 1 2 2 0 0 9

IIIIII.I.I.I.I. CCCCCapital rapital rapital rapital rapital raised during the yaised during the yaised during the yaised during the yaised during the year (Amounear (Amounear (Amounear (Amounear (Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)


N I L N I L


N I L N I L


(Amoun(Amoun(Amoun(Amoun(Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)


4 2 3 . 4 6 4 2 3 . 4 6

SourSourSourSourSources of Fces of Fces of Fces of Fces of Fundsundsundsundsunds


3 2 5 . 0 0 8 . 3 5


N I L N I L



0 . 5 4 0 . 2 1


2 7 1 . 6 9 N I L

Accumulated Losses

6 0 . 9 1

IVIVIVIVIV..... PPPPPerererererffffformance of Cormance of Cormance of Cormance of Cormance of Companompanompanompanompany (Amouny (Amouny (Amouny (Amouny (Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)

Turnover Total Expenditure

1 8 4 . 8 8 2 1 9 . 8 7

PrPrPrPrProfitofitofitofitofit / (-) L / (-) L / (-) L / (-) L / (-) Loss oss oss oss oss BBBBBefefefefefororororore e e e e TTTTTaxaxaxaxax PrPrPrPrProfitofitofitofitofit / (-) L / (-) L / (-) L / (-) L / (-) Loss oss oss oss oss AAAAAfffffter ter ter ter ter TTTTTaxaxaxaxax

----- 1 5 . 4 3 - 1 5 . 6 5

Earning per share (in Rs.) For Share of Rs. 100.00 each Dividend Rate %

( 4 . 8 2 ) N I L


Item Code No. (ITC Code) 2 5 2 1 0 0 9 0

Product Description E X T R A C T I O N


S A L E O F L I M E S T O N E

*Including Share Holders’ Fund


188

NNNNNLLLLLCCCCCPLPLPLPLPL

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OFS OFS OFS OFS OFNANANANANATTTTTIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESTTTTTONONONONONE CE CE CE CE COOOOOMPMPMPMPMPANANANANANY PRY PRY PRY PRY PRIVIVIVIVIVAAAAATTTTTE LIMITE LIMITE LIMITE LIMITE LIMITEDEDEDEDED

1 The Directors hereby present the Twenty Ninth Annual Reporton the business and operations of the Company and the AuditedAccounts for the nine months period ended December 31, 2009.


PARTICULARS For the period For the Year endedfrom April 1, 2009 to March 31, 2009December 31, 2009

Rs. Rs. Rs.

Sale of Products, Services andOther Income 116,427 1,783,990

Profit/(Loss) Before Tax (599,052) (821,161)

Provision for Taxation- Current Tax — —- Deferred Tax — (25,146)- Fringe Benefits Tax — 14,000Profit/ (Loss) after Taxation (599,052) (810,015)

Balance brought forward — 816,607from previous year

Provision of earlier yearwritten back — 6,358

Balance carried forward toBalance Sheet (599,052) 12,950

3..... CCCCCHANGE IHANGE IHANGE IHANGE IHANGE IN AN AN AN AN ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING NG NG NG NG YYYYYEEEEEARARARARAR

The accounting year has been changed from April – March toJanuary – December. Therefore the accounts for the year 2009have been drawn for the nine months period April – December2009.


The total despatches for the period, i.e. April 1, 2009 tillDecember 31, 2009 were 538.12 MT.

The Company has incurred a loss before tax of Rs. 5,99,052 forthe period April 1, 2009 to December 31, 2009 as compared toa loss of Rs. 8,21,161 for the year ended March 31, 2009. Theloss after tax for the period April 1, 2009 to December 31, 2009is Rs. 5,99,052 as compared to a loss of Rs. 8,10,015 for the yearended March 31, 2009.

5. DIVIDIVIDIVIDIVIDIVIDENDENDENDENDENDDDDD

Your Directors do not recommend any dividend for the financialyear ended December 31, 2009.

6. CCCCCHANGE IHANGE IHANGE IHANGE IHANGE IN N N N N TTTTTHHHHHE RE RE RE RE REGISEGISEGISEGISEGISTTTTTERERERERERED OFFICED OFFICED OFFICED OFFICED OFFICEEEEE

During the year, the Company changed its Registered Officefrom Bajaj Sadan, Shahpura, Dist. Jaipur, Rajasthan, to G-9/CKabir Marg, Bani Park, Jaipur 302 016.

7. CCCCCHANGE IHANGE IHANGE IHANGE IHANGE IN ON ON ON ON OWNWNWNWNWNERERERERERSHSHSHSHSHIIIIIPPPPP

ACC Limited has acquired 100% equity stake in the Companyand accordingly the Company has become a wholly ownedsubsidiary of ACC Limited with effect from April 20, 2009.Consequent thereto there has been a change of Management.




There was no technology absorption and no foreign exchangeearnings or outgo during the period under review. Hence theinformation as required under Section 217(1)(e) of theCompanies Act 1956, read with the Companies (Disclosure ofParticulars in the Report of the Board of Directors) Rules, 1988,is NIL.

The Company has not entered into any technology transferagreement.


The Company has not employed any individual whoseremuneration falls within the purview of the limits prescribedunder the provisions of Sec 217 (2A) of the Companies Act,1956, read with the Companies (Particulars of Employees) Rules,1975.


Mr. A Anjeneyan who was appointed as a Director of theCompany with effect from December 30, 2008, resigned fromthe Board of Directors of the Company with effect from July 16,2009. The Board has placed on record its appreciation of thevaluable services rendered by Mr. A. Anjeneyan as a Director ofthe Company.

The Board of Directors has appointed Mr. S. K. Das and Mr. B. D.Nariman as Additional Directors of the Company with effectfrom July 16, 2009 and January 27, 2010 respectively. AsAdditional Directors, Mr. Das and Mr. Nariman hold office tillthe date of the forthcoming Annual General Meeting.Accordingly their candidature for appointment is included atItems 4 & 5 of the Notice.

In accordance with the provisions of the Companies Act, 1956,Mr. M. K. Mishra retires by rotation and is eligible forreappointment.



i) that in the preparation of the Accounts for the period April1, 2009 to December 31, 2009, the applicable accountingstandards have been followed along with properexplanation relating to material departures, if any,

NANANANANATTTTTIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESTTTTTONONONONONE CE CE CE CE COOOOOMPMPMPMPMPANANANANANY PRY PRY PRY PRY PRIVIVIVIVIVAAAAATTTTTE LIMITE LIMITE LIMITE LIMITE LIMITEDEDEDEDEDDIRECTORS’ REPORT

189


ii) that such accounting policies as mentioned in the Note 1of the Notes to the Accounts have been selected andapplied consistently and judgements and estimates thatare reasonable and prudent made so as to give a true andfair view of the state of the affairs of the Company as atDecember 31, 2009, and of the Profit of the Company forthe period ended on that date,


iv) that the accounts for the period ended December 31, 2009,have been prepared on a going concern basis.

13. AAAAAUUUUUDIT CDIT CDIT CDIT CDIT COOOOOMMITTMMITTMMITTMMITTMMITTEEEEEEEEEE

The paid up Share Capital of the Company is less than RupeesFive Crore and hence the Company is not required to constitutean Audit Committee under the provisions of Section 292A of theCompanies Act, 1956.

14..... AAAAAUUUUUDITDITDITDITDITORORORORORSSSSS

M/s. K S Aiyar & Co., Mumbai, the existing Auditors have underSection 224 (1B) of the Companies Act, 1956, furnished the

certificate of their eligibility for their re-appointment. TheMembers are requested to re-appoint them as Auditors of theCompany for the year 2010 on a remuneration to be decided bythe Board of Directors.

15. AAAAACCCCCKNOKNOKNOKNOKNOWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENTWLEDGEMENT

Your Directors take this opportunity to express their appreciationof the excellent co-operation received from the Governmentand Company’s Bankers. Your Directors also acknowledge theunstinting assistance and support received from ACC Limited,its holding Company and all the employees for their valuablecontribution during the year.


B. D. NarimanChairman

January 27, 2010Registered Office:G-9/C Kabir Marg,Bani Park,Jaipur – 302 016

190

NNNNNLLLLLCCCCCPLPLPLPLPLAUDITORS’ REPORT

TTTTTO O O O O TTTTTHHHHHE MEMBE MEMBE MEMBE MEMBE MEMBERERERERERS OF NAS OF NAS OF NAS OF NAS OF NATTTTTIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESIONAL LIMESTTTTTONONONONONE CE CE CE CE COOOOOMPMPMPMPMPANANANANANY PRY PRY PRY PRY PRIVIVIVIVIVAAAAATTTTTEEEEELLLLLTTTTTDDDDD.....

1. We have audited the attached Balance Sheet of NATIONAL LIMESTONE COMPANY PRIVATE LIMITED, as at December 31, 2009,and also the Profit and Loss Account and the Cash FlowStatement for the period ended on that date annexed thereto.These financial statements are the responsibility of theCompany’s management. Our responsibility is to express anopinion on these financial statements based on our audit.















ANANANANANNNNNNEEEEEXXXXXUUUUURRRRRE E E E E TTTTTO O O O O TTTTTHHHHHE AE AE AE AE AUUUUUDITDITDITDITDITORORORORORS’S’S’S’S’ R R R R REPEPEPEPEPORORORORORTTTTT

(Referred to in paragraph 3 of our Report of even date on theAccounts for the year ended December 31, 2009 of NATIONALLIMESTONE COMPANY PRIVATE LIMITED)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situationof fixed assets.

(b) The fixed assets are physically verified by themanagement during the year and in our opinion thefrequency of verification is reasonable having regard tothe size of the Company and the nature of its assets. Nomaterial discrepancies were noticed on such physicalverification.

(c) No fixed assets are disposed off during the year.

(ii) (a) The inventories have been physically verified during theyear by the management. In our opinion, the frequencyof verification is reasonable.

(b) The procedures of physical verification of inventoriesfollowed by the management are reasonable andadequate in relation to the size of the Company and thenature of its business.




(iv) In our opinion and according to the information andexplanations given to us, there is an adequate internal control

191


system commensurate with the size of the Company and thenature of its business for the purchases of inventory and fixedassets and for the sale of goods and services. During the courseof our audit, no major weakness has been noticed in theinternal control system in respect of these areas.

(v) (a) Based upon the audit procedures performed andaccording to the information and explanations given tous, there are no contracts or arrangements that need tobe entered into the register maintained in pursuance ofSection 301 of the Companies Act, 1956. Accordingly, sub-clause (b) is not applicable.

(vi) The Company has not accepted any deposits from the publicto which the provisions of section 58A, 58AA, or any otherrelevant provisions of the Companies Act, 1956 and theCompanies (Acceptance of Deposit) Rules 1975 apply.

(vii) The Company neither has a paid-up capital and reservesexceeding Rs. 50 lacs, as at the commencement of financialperiod, nor does it have as average annual turnover exceedingRs. 5 crores, for the period of three consecutive financial yearsimmediately preceding the financial year and therefore, thedirections in respect of internal audit are not applicable tothe Company.

(viii) The Central Government has not prescribed the maintenanceof cost records under section 209 (1) (d) of the CompaniesAct, 1956.

(ix) (a) According to the records of the Company, Provident Fund,Investor Education and Protection Fund, Employees’ StateInsurance, Income tax, Sales tax, Wealth tax, Service tax,Custom duty, Excise duty, cess and other materialstatutory dues applicable to it have been generallyregularly deposited during the year with the appropriateauthorities.According to the information andexplanations given to us, there are no undisputed duesin respect of provident fund, investor education andprotection fund, employees’ state insurance, income-tax,wealth-tax, service tax, sales-tax, customs duty, exciseduty, cess and other statutory dues which wereoutstanding, at the year end for a period of more thansix months from the date they became payable.


(x) The Company has accumulated losses at the end of thefinancial year and has incurred cash losses during the financial

year covered by our audit and in the immediately precedingfinancial year.

(xi) According to the information and explanations given to us,the Company has not taken any money from financialinstitution, bank or debenture holders and hence clause 4(xi)is not applicable.

(xii) Based on our examination of the records and the informationand explanations given to us, the Company has not grantedany loans and advances on the basis of security by way ofpledge of shares, debentures and other securities.

(xiii) In our opinion, the Company is not a chit fund or a nidhi /mutual benefit fund / society. Therefore, the provisions ofclause 4 (xiii) of the Order are not applicable to the Company.


(xv) According to the information and explanations given to us,the Company has not given guarantee for loans taken byothers from bank or financial institutions.

(xvi) The company has not raised any term loans during the year.




(xx) The Company has not raised any money by way of public issueduring the year. Therefore, the provision of clause (xx) of theorder is not applicable to the Company.




192


As at As at

December 31, March 31,2009 2009




Share Capital 1 865,000 865,000

Reserves and Surplus 2 422,125 230,057

1,287,125 1,095,057

DefDefDefDefDeferrerrerrerrerred ed ed ed ed TTTTTax Liabilities (net)ax Liabilities (net)ax Liabilities (net)ax Liabilities (net)ax Liabilities (net) 7,940 7,940

TTTTTOOOOOTTTTTAL FAL FAL FAL FAL FUUUUUNNNNNDSDSDSDSDS 1,295,0651,295,0651,295,0651,295,0651,295,065 1,102,9971,102,9971,102,9971,102,9971,102,997


FFFFFixixixixixed Assets :ed Assets :ed Assets :ed Assets :ed Assets : 3

Gross Block 1,342,179 1,342,179

Less: Accumulated Depreciation 636,113 807,540

Net Block 706,066 -

706,066 534,639

CurrCurrCurrCurrCurrenenenenenttttt Assets Assets Assets Assets Assets, L, L, L, L, Loans and Advoans and Advoans and Advoans and Advoans and Advances :ances :ances :ances :ances :

Inventory 4 5,206 5,206

Sundry Debtors 5 - 18,257

Cash and Bank Balances 6 578,111 480,911

Other Current Assets 7 319,128 143,451

Loans and Advances 8 604,387 144,419

1,506,832 792,244

LLLLLess : Curress : Curress : Curress : Curress : Currenenenenenttttt Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Pr Liabilities and Prooooovisions :visions :visions :visions :visions :

Current Liabilities 9 1,516,884 209,886

Provisions 10 - 14,000

1,516,884 223,886

NetNetNetNetNet Curr Curr Curr Curr Currenenenenenttttt Assets Assets Assets Assets Assets (10,052) 568,358

PrPrPrPrProfitofitofitofitofit & L & L & L & L & Loss Accoss Accoss Accoss Accoss Accounounounounounttttt 599,052 -

TTTTTOOOOOTTTTTAL AAL AAL AAL AAL ASSETSSETSSETSSETSSETS (NS (NS (NS (NS (NETETETETET))))) 1,295,0651,295,0651,295,0651,295,0651,295,065 1,102,9971,102,9971,102,9971,102,9971,102,997


The schedules referred to above and notes to accounts form an integral part of theBalance Sheet

As per our report of even date For and on behalf of the Board of National Lime StoneCo. Private Limited,

For K. S. AIYAR & CO. M. K. Mishra ChairmanChartered Accountants S. Das Gupta

S. K. Das DirectorK. M. Gupta



For the period For thefrom 1st April year ended

to December 31, March 31,2009 2009


IIIIINCNCNCNCNCOOOOOME :ME :ME :ME :ME :

Sale of Products and Services (Gross) 116,427 1,783,990

Less - Excise Duty - -

Sale of Products and Services (Net) 116,427 1,783,990

Other Income (Interest) 11 5,918 236,691

122,344 2,020,681EEEEEXPENXPENXPENXPENXPENDITDITDITDITDITUUUUURRRRRE :E :E :E :E :

Manufacturing and Other Expenses 12 700,756 2,830,758

Depreciation and Amortisation . 20,640 11,084

Interest - -

721,396 2,841,842

PrPrPrPrProfitofitofitofitofit / (L / (L / (L / (L / (Lossossossossoss) bef) bef) bef) bef) befororororore e e e e TTTTTaxaxaxaxaxaaaaationtiontiontiontion (599,052)(599,052)(599,052)(599,052)(599,052) (821,161)(821,161)(821,161)(821,161)(821,161)

PrPrPrPrProoooovision fvision fvision fvision fvision for or or or or TTTTTaxaxaxaxaxaaaaationtiontiontiontion

Deferred Tax (Income) - (25,146)

Fringe Benefit Tax - 14,000

- (11,146)

PrPrPrPrProfitofitofitofitofit / (L / (L / (L / (L / (Lossossossossoss) af) af) af) af) after ter ter ter ter TTTTTaxaxaxaxaxaaaaationtiontiontiontion (599,052)(599,052)(599,052)(599,052)(599,052) (810,015)(810,015)(810,015)(810,015)(810,015)

Balance brought forward from Previous period - 816,607

Provision of earlier years written back - 6,358

Transfer from General Reserve - -

Balance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance SheetBalance carried to Balance Sheet (599,052)(599,052)(599,052)(599,052)(599,052) 12,95012,95012,95012,95012,950

Basic & Diluted Earnings per Share Rupees (69.25) (93.64)


The schedules referred to above and Notes to accounts form an integral part of theProfit and Loss Account






BALANCE SHEET AS AT DECEMBER 31,2009

PROFIT AND LOSS ACCOUNTFOR THE YEAR ENDED DECEMBER 31, 2009

} }

193

NNNNNLLLLLCCCCCPLPLPLPLPLCASH FLOW STATEMENT FOR THE YEARENDED DECEMBER 31, 2009


For the For theperiod from period from

April 1, 2009 April 1, 2008to December 31, to March 31,

2009 31, 2009

Rs. Lac Rs. Lac

A .A .A .A .A . CCCCCash flow frash flow frash flow frash flow frash flow from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities

1. Net Profit/(Loss) before taxation (599,052) (821,161)

Adjustments for:

Depreciation 20,640 11,084

Operating profit before working capital changes (578,412)(578,412)(578,412)(578,412)(578,412) (810,077)(810,077)(810,077)(810,077)(810,077)

2. Trade Receivables 18,257 513,332

3. Inventories - 15,953

4. Other Receivables (644,165) 246,412

5. Trade Payables 1,306,999 (118,872)

Cash generated from operations 102,679 (153,252)

6. Direct Taxes refund / (paid) 439 -

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from operom operom operom operom operaaaaating acting acting acting acting activitiestivitiestivitiestivitiestivities 103,118103,118103,118103,118103,118 (153,252)(153,252)(153,252)(153,252)(153,252)

BBBBB cash flow frcash flow frcash flow frcash flow frcash flow from inom inom inom inom invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities

7. Interest received (5,918) (7,800)

8. Sale of Fixed Assets - 103,174

NetNetNetNetNet cash fr cash fr cash fr cash fr cash from inom inom inom inom invvvvvesting acesting acesting acesting acesting activitiestivitiestivitiestivitiestivities (5,918)(5,918)(5,918)(5,918)(5,918) 95,37495,37495,37495,37495,374

Net increase / (decrease) in cash & 97,200 (57,878)

cash equivalentsCash & cash equivalents :

Opening Balance 480,911 538,789

Closing Balance 578,111 480,911






SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARLE - 1, SHARE CE CE CE CE CAPITAPITAPITAPITAPITALALALALAL

As at As at

December March

31, 2009 31, 2009

Rs. Rs.

AAAAAUUUUUTTTTTH O RH O RH O RH O RH O RISED -ISED -ISED -ISED -ISED -

50,000 Equity Shares of Rs. 100 each

(Previous Year -50,000 Equity Shares

of Rs 100 each) 5,000,000 5,000,000


8650 Equity Shares of Rs. 100 each

(Previous Year -8650 Equity Shares

of Rs 100 each) 865,000 865,000

S US US US US UBSCBSCBSCBSCBSCRRRRR IIIIIBBBBBED -ED -ED -ED -ED -

8650 Equity Shares of Rs. 100 each 865,000 865,000

(Previous Year -8650 Equity Shares

of Rs 100 each)

(All the Shares held by ACC Limited the

Holding Company and

its nominees)

TOTAL 865,000 865,000

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 2LE - 2LE - 2LE - 2LE - 2,,,,, R R R R RESERESERESERESERESERVES ANVES ANVES ANVES ANVES AND SUD SUD SUD SUD SURRRRRPLPLPLPLPLUSUSUSUSUS

As at As at

December March

31, 2009 31, 2009

Rs. Rs. Rs.

General Reserve 230,057 217,107

Add: Adjustment of Depreciation

pertaining to earlier year on 192,068 -

account of change in method

of Depreciation

422,125 217,107

Profit& Loss Account - 12,950

TOTAL 422125 230057

}

194


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ALE - 3, FIXED ASSETSSETSSETSSETSSETSSSSS(Rs.)(Rs.)(Rs.)(Rs.)(Rs.)

FIXED AFIXED AFIXED AFIXED AFIXED ASSETSSETSSETSSETSSETSSSSS GRGRGRGRGROSS BOSS BOSS BOSS BOSS BLLLLLOOOOOCCCCCK AK AK AK AK AT CT CT CT CT COSOSOSOSOSTTTTT TTTTTOOOOOTTTTTAL AL AL AL AL DEPRDEPRDEPRDEPRDEPRECECECECECIAIAIAIAIATTTTTION / AION / AION / AION / AION / AMMMMMORORORORORTTTTTISISISISISAAAAATTTTTIONIONIONIONION NNNNNET BET BET BET BET BLLLLLOOOOOCCCCCKKKKK

As at Addi- Deduc- Adjust-01-04-2009 tions/ tions/ As at Opg as on For the ment due Upto As at As at

Adjust- Adjust- 31-12-2009 01-04-2009 period to method 31-12-2009 31-12-2009 31-03-2009ments ments change

TTTTTangible Assets :angible Assets :angible Assets :angible Assets :angible Assets :Freehold Land 380,154 - - 380,154 - - - - 380,154 380,154Lease Hold Land 47,977 - - 47,977 - - - - 47,977 47,977Factory Building 719,591 - - 719,591 636,935 18024 142,830 512,129 207,462 82,656Tubewell 35,283 - - 35,283 28,103 432 15,450 13,085 22,198 7,180Office Building 43,459 - - 43,459 32,690 531 23,121 10,100 33,359 10,769Plant & Machinery 40,000 - - 40,000 36,092 1425 2,581 34,936 5,064 3,908Weight Machine 57,161 - - 57,161 55,852 - (1309) 57,161 - 1,309Magzine / Explosive Warehouse 18,554 - - 18,554 17,868 228 9,394 8,702 9,852 686

Total 1,342,179 - - 1,342,179 807,540 20640 192,067 636,113 706,066 534,639

Previous Year 7,361,888 - 6,019,709 1,342,179 6,671,378 11,084 5,874,922 807,540 534,639 -

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULES FORMILES FORMILES FORMILES FORMILES FORMING PNG PNG PNG PNG PARARARARART OF T OF T OF T OF T OF TTTTTHHHHHE BE BE BE BE BALANCALANCALANCALANCALANCE SHE SHE SHE SHE SHEETEETEETEETEET

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 4, ILE - 4, ILE - 4, ILE - 4, ILE - 4, INVENTNVENTNVENTNVENTNVENTORORORORORYYYYY As at As atDecember March

31,2009 31, 2009

Rs. Rs.

Stock of Explosive 3,974 3,974Stock of limestone 1,232 1,232

TOTAL 5,206 5,206

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE -5, SULE -5, SULE -5, SULE -5, SULE -5, SUNNNNNDRDRDRDRDRY DEBY DEBY DEBY DEBY DEBTTTTTORORORORORSSSSS As at As atDecember March

31,2009 31, 2009

Rs. Rs. Rs.

SUNDRY DEBTORS (UNSECURED )Over Six Months -Considered Good - -Considered Doubtful - 18,257

- 18,257Less:Provision made for Bad andDoubtful Debts - - -

- 18,257

TOTAL - 18,257

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 6, CLE - 6, CLE - 6, CLE - 6, CLE - 6, CAAAAASH ANSH ANSH ANSH ANSH AND BD BD BD BD BANANANANANKKKKKBBBBBALANCALANCALANCALANCALANCESESESESES As at As at

December March31,2009 31, 2009

Rs. Rs.

Cash on Hand - 22Balance With Scheduled BanksIn Current Account 121,111 23,889In Fixed Deposits 457,000 457,000

TOTAL 578,111 480,911

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 7, OLE - 7, OLE - 7, OLE - 7, OLE - 7, OTTTTTHHHHHER CUER CUER CUER CUER CURRRRRRRRRRENT AENT AENT AENT AENT ASSETSSETSSETSSETSSETSSSSS As at As atDecember March

31,2009 31, 2009Rs. Rs.

Accrued Interest 149,369 143,451

Prepaid Expense 169,759 -

TOTAL 319,128 143,451

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 8, LLE - 8, LLE - 8, LLE - 8, LLE - 8, LOOOOOANS ANANS ANANS ANANS ANANS ANDDDDD As at As at

ADADADADADVVVVVANCANCANCANCANCES -ES -ES -ES -ES - December March

31,2009 31,2009

Rs. Rs. Rs.

(Unsecured, Considered Good,

unless otherwise stated)


Advance to holding Company 50,000 50,000

Advances Recoverable in cash or in

Kind or for value to be received 532,580 58,173

582,580 108,173

Advance Payments Against Taxes 21,807 36,246

TOTAL 604,387 144,419

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 9, CULE - 9, CULE - 9, CULE - 9, CULE - 9, CURRRRRRRRRRENT LIABENT LIABENT LIABENT LIABENT LIABIIIIILITLITLITLITLITIIIIIESESESESES As at As at

December March

31,2009 31,2009

Rs. Rs.

Payable to holding company 1,049,082 -

Sundry Creditors 461,478 209,886

Other Current Liabilities 6,324 -

TOTAL 1,516,884 209,886

195


SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 10, PRLE - 10, PRLE - 10, PRLE - 10, PRLE - 10, PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS As at As at

December March

31, 2009 31, 2009

Rs. Rs.

Provision for Fringe Benefit Tax - 14,000

TOTAL - 14,000

SCHEDULES FORMING PART OF THE PROFIT AND LOSS

ACCOUNT

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 11, OLE - 11, OLE - 11, OLE - 11, OLE - 11, OTTTTTHHHHHER IER IER IER IER INCNCNCNCNCOOOOOMEMEMEMEME For the For the

Period from Year ended

1st April on March

to December 31, 2009

31, 2009

Rs. Rs.

Interest Income 5,918 7,800

JCB Hire charges & Dumper Freight - 228,891

TOTAL 5,918 236,691

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, MLE - 12, MLE - 12, MLE - 12, MLE - 12, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIINGNGNGNGNGANANANANAND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES

For the Period For the Year

from 1st April to ended on

December March

31, 2009 31, 2009

Rs. Rs. Rs.


Stores and Spares parts Consumed 25,432 396,101

Power and Fuel (Diesel & Electricity) 1,068 3,745

Repairs to Other Items - 307,172

Royalties 467,103 622,804

Loading, Transportation, Mines

Expenses and Other Charges 55,201 65,997

548,804 1,395,819

PPPPPAAAAAYYYYYMENTMENTMENTMENTMENTS S S S S TTTTTO ANO ANO ANO ANO AND PRD PRD PRD PRD PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS

FOR EMPLFOR EMPLFOR EMPLFOR EMPLFOR EMPLOOOOOYYYYYEESEESEESEESEES

Salaries, Wages, Dearness

Allowance and Bonus - 610,480

Contributions / Provisions to and

for Provident and Other Funds - 392,715

Workmen and Staff Welfare Expenses - 38,640

- 1,041,835

ADADADADADMIMIMIMIMINNNNNISISISISISTTTTTRRRRRAAAAATTTTTIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLIIVE, SELLINGNGNGNGNG

ANANANANAND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSESXPENSESXPENSESXPENSESXPENSES

Rates and Taxes (Including

Sale Tax Expense & Cess) - 2,526

Insurance - 42,667

Travelling Expenses - 16,132


Bank Charges 570 1,914

Professional Charges 12,573 -

Legal Expenses - 43,227

Stationary Expense - 8,288

Misc. Expenses 32,809 230,375

Auditors Remuneration 106,000 8,397

Discount & Rebates on sale - -

151,952 353,526

Provision for Doubtful Debts - 34,578

IIIIINCNCNCNCNCRRRRREEEEEAAAAASE / (DECSE / (DECSE / (DECSE / (DECSE / (DECRRRRREEEEEAAAAASE) ISE) ISE) ISE) ISE) IN SN SN SN SN STTTTTOOOOOCCCCCKKKKKSSSSS

Closing StockClosing StockClosing StockClosing StockClosing Stocks -s -s -s -s -

Finished Goods 1,232 1,232

Work-in-Progress - -

1,232 1,232

Opening StockOpening StockOpening StockOpening StockOpening Stocks -s -s -s -s -

Finished Goods 1,232 6,232

Work-in-Progress - -

1,232 6,232

- 5,000

TOTAL 700,756 2,830,758

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE - 12, MLE - 12, MLE - 12, MLE - 12, MLE - 12, MANANANANANUUUUUFFFFFAAAAACTCTCTCTCTUUUUURRRRRIIIIINGNGNGNGNGANANANANAND OD OD OD OD OTTTTTHHHHHER EER EER EER EER EXPENSES (XPENSES (XPENSES (XPENSES (XPENSES (CCCCCononononontd.)td.)td.)td.)td.)

For the Period For the Year

from 1st April to ended on

December March

31, 2009 31, 2009

Rs. Rs. Rs.

SCHEDULES FORMING PART OF THE BALANCE SHEET AND PROFIT

AND LOSS ACCOUNT

SCSCSCSCSCHHHHHEDUEDUEDUEDUEDULE –13, NOLE –13, NOLE –13, NOLE –13, NOLE –13, NOTTTTTES ES ES ES ES TTTTTO AO AO AO AO ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTSSSSS

1.1.1.1.1. SIGNSIGNSIGNSIGNSIGNIIIIIFICFICFICFICFICANT AANT AANT AANT AANT ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTIIIIING PNG PNG PNG PNG POLICOLICOLICOLICOLICIIIIIES ANES ANES ANES ANES AND NOD NOD NOD NOD NOTTTTTES FORMIES FORMIES FORMIES FORMIES FORMINGNGNGNGNGPPPPPARARARARART OF T OF T OF T OF T OF TTTTTHHHHHE AE AE AE AE ACCCCCCCCCCOUOUOUOUOUNTNTNTNTNTS FOR S FOR S FOR S FOR S FOR TTTTTHHHHHE PERE PERE PERE PERE PERIOD ENIOD ENIOD ENIOD ENIOD ENDED DECDED DECDED DECDED DECDED DECEMBEMBEMBEMBEMBERERERERER31, 200931, 200931, 200931, 200931, 2009

(A)(A)(A)(A)(A) Basis of prBasis of prBasis of prBasis of prBasis of preparepareparepareparaaaaationtiontiontiontion

(i) The financial statements have been prepared to comply inall material aspects in respect with the Notified AccountingStandard by Companies Accounting Standards Rules, 2006and the relevant provisions of the Companies Act, 1956.

(ii) Financial statements are based on historical cost and areprepared on accrual basis, except where impairment ismade and revaluation is carried out.

(iii) Accounting policies have been consistently applied by theCompany.

SCHEDULES FORMING PART OF THE PROFIT AND LOSSACCOUNT

196


(B)(B)(B)(B)(B) Use of estimaUse of estimaUse of estimaUse of estimaUse of estimatestestestestes

The preparation of financial statements in conformity withgenerally accepted accounting principles requires managementto make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingentliabilities at the date of the financial statements and the resultsof operations during the reporting period end. Although theseestimates are based upon management’s best knowledge ofcurrent events and actions, actual results could differ from theseestimates.

(((((C)C)C)C)C) RRRRReeeeevvvvvenue renue renue renue renue recececececognitionognitionognitionognitionognition

Revenue is recognized to the extent that it is probable that theeconomic benefits will flow to the Company and the revenuecan be reliably measured.

I.I.I .I .I . Sale of goodsSale of goodsSale of goodsSale of goodsSale of goods

Revenue is recognised when the significant risks andrewards of ownership of the goods have passed to thebuyer. Domestic Sales are accounted on dispatch ofproducts and are stated net of returns.

Income from jobs and other services rendered is accountedfor as per the terms of contract.

IIIIII.I.I.I.I. InInInInInterterterterterestestestestest

Revenue is recognized on a time proportion basis takinginto account the amount outstanding and the rateapplicable.

(D(D(D(D(D))))) FFFFFixixixixixed assetsed assetsed assetsed assetsed assets

Fixed assets are stated at cost of acquisition or constructionincluding attributable interest and financial costs till such assetsare ready for its intended use, less accumulated depreciation,impairment losses and specific grants received, if any.

(E)(E)(E)(E)(E) DeprDeprDeprDeprDepreciaeciaeciaeciaeciationtiontiontiontion

Before takeover by ACC; depreciation was provided with Writtendown value method of Pro-rata basis in accordance with ratesspecified under Schedule XIV of the Companies Act, 1956. Aftertake over the company has charged the depreciation on thestraight line method at the rates prescribed in Schedule XIV ofthe Companies Act, 1956.

(F)(F)(F)(F)(F) InInInInInvvvvvestmenestmenestmenestmenestmentststststs

Investments that are readily realizable and intended to be heldfor not more than a year are classified as current investments.All other investments are classified as long-term investments.Long term investments are carried at cost. However, provisionfor diminution in value is made to recognize a decline otherthan temporary in the value of investments. Currentinvestments are stated at cost or fair value whichever is lower,determined on an individual investment basis. Cost isdetermined on a weighted average basis.

(((((G)G)G)G)G) IncIncIncIncIncome taxome taxome taxome taxome taxeseseseses

Tax expense comprises of current, deferred and fringe benefittax. Current income tax and fringe benefit tax is measured at

the amount expected to be paid to the tax authorities inaccordance with the Indian Income Tax Act. Deferred incometaxes reflects the impact of current year timing differencesbetween taxable income and accounting income for the yearand reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the taxlaws enacted or substantively enacted at the balance sheet date.Deferred tax assets are recognised only to the extent that thereis reasonable certainty that sufficient future taxable incomewill be available against which such deferred tax assets can berealised. In situations where the company has unabsorbeddepreciation or carry forward tax losses, all deferred tax assetsare recognised only if there is virtual certainty supported byconvincing evidence that they can be realised against futuretaxable profits.

(H)(H)(H)(H)(H) CCCCCononononontingencies / Prtingencies / Prtingencies / Prtingencies / Prtingencies / Prooooovisionsvisionsvisionsvisionsvisions

A provision is recognised when an enterprise has a presentobligation as a result of past event; it is probable that an outflowof resources embodying economic benefit will be required tosettle the obligation, in respect of which a reliable estimatecan be made. Provisions are not discounted to its present valueand are determined based on best estimate required to settlethe obligation at the Balance Sheet date. These are reviewed ateach Balance Sheet date and adjusted to reflect the currentbest estimates. A contingent liability is disclosed, unless thepossibility of an outflow of resources embodying the economicbenefit is remote.

(I)(I)(I)(I)(I) EEEEEarnings per shararnings per shararnings per shararnings per shararnings per shareeeee

Basic earnings per share are calculated by dividing the net profitor loss for the period attributable to equity shareholders by theweighted average number of equity shares outstanding duringthe period.

(((((J)J)J)J)J) SegmenSegmenSegmenSegmenSegmenttttt R R R R Reporeporeporeporeportingtingtingtingting

The Company is operating only in one significant businesssegment i.e. Extraction and sale of lime stone; hence segmentinformation as per Accounting Standard 17 is not required tobe disclosed. The Company is catering mainly to the need ofthe domestic market; as such there is no reportableGeographical Segments.


Particulars of Related Parties, which control or are undercommon control with the Company:

(a) During the year the company has become the 100 % subsidiarycompany of ACC L td. Share holding of holding company is 100%(8650 shares of Rs 100 each). Before acquisition by ACC Ltd thedetail of related Parties upto (20th April, 2009) is asbelow:


Bajaj Granite & Marbles Enterprise that is under common control.

Punchsheel Marbles (P) Ltd Enterprise that is under common control.

197


Details of Related parties after acquisition by ACC Ltd, are as follows:



Bulk Cement Corporation(India) Ltd. Fellow Subsidiary Company

ACC Mineral Resources Ltd(Formerly The Cement MarketingCompany of India Ltd) Fellow Subsidiary Company

Ambuja Cement IndiaPrivate Limited. Promoter Group Company

Ambuja Cements Limited Promoter Group Company

ACC Concrete Ltd Fellow Subsidiary Company

Alcon Cement Company Associate Company of the HoldingPrivate Limited Company from April 01, 2008

Lucky Minmat Ltd Fellow Subsidiary Company

Holderind Investments Limited Promoter Group Company of theHolding Company

Holcim India (P) Limited Promoter Group Company of theHolding Company

Holcim Service (Asia) Limited Promoter Group Company of theHolding Company

Holcim (Bangladesh) Limited Promoter Group Company of theHolding Company

Holcim Foundation Promoter Group Entity of theHolding Company

Holcim (Lanka) Limited Promoter Group Company of theHolding Company

PT Holcim Indonesia Tbk Promoter Group Company of theHolding Company

Siam City Concrete Co Limited Promoter Group Company of theHolding Company

Siam City Cement Public Promoter Group Company of theCompany Limited Holding Company

National Cement Factory Promoter Group Company of theHolding Company

Holcim Group Support Limited Promoter Group Company of theHolding Company

Holcim Limited Promoter Group Company of theHolding Company

Holcim Singapore Limited Promoter Group Company of theHolding Company

Holcim Trading FZCO Promoter Group Company of theHolding Company

Holcim Services (South Asia) Promoter Group Company of theLimited Holding Company

(b)(b)(b)(b)(b) KKKKKeeeee y M a n a g e m e ny M a n a g e m e ny M a n a g e m e ny M a n a g e m e ny M a n a g e m e nttttt P P P P Pe r s o n n e l p r i o r t o 2 0 t h A p r i l 2 0 0 9e r s o n n e l p r i o r t o 2 0 t h A p r i l 2 0 0 9e r s o n n e l p r i o r t o 2 0 t h A p r i l 2 0 0 9e r s o n n e l p r i o r t o 2 0 t h A p r i l 2 0 0 9e r s o n n e l p r i o r t o 2 0 t h A p r i l 2 0 0 9ararararare as undere as undere as undere as undere as under

Name of KName of KName of KName of KName of Keeeeey Managemeny Managemeny Managemeny Managemeny Managementtttt P P P P Personnelersonnelersonnelersonnelersonnel NaNaNaNaNaturturturturture of Re of Re of Re of Re of Relaelaelaelaelationshiptionshiptionshiptionshiptionship

Shri Rameshwar Prasad Bajaj Director

Shri Srikrishan Agarwal Director

Smt . Bhagwati Devi Agarwal Director

Smt Neerja Devi Agarwal Director

(c)(c)(c)(c)(c) TTTTTrrrrransacansacansacansacansaction with Holding ction with Holding ction with Holding ction with Holding ction with Holding companompanompanompanompanyyyyy

Transaction with For the Period For the YearRelated Party from 1st April 09 ended March

to December 31, 200931, 2009

Rs. Rs.

(i) Sale to ACC Ltd 116,427 Nil

(ii) Dead Rent / Land tax /F.B.T Paid on behalf ofNational limestone PvtLimited By ACC Limited 1,258,518 Nil

(iii) Transportation chargeRecovery from ACC Ltd 188,353 Nil

(iv) Outstanding balance(Net) to ACC Limited 999,082 Nil

(((((d) d) d) d) d) TTTTTrrrrransacansacansacansacansaction with Rtion with Rtion with Rtion with Rtion with Relaelaelaelaelated parted parted parted parted parties (Up to 20th April 2009)ties (Up to 20th April 2009)ties (Up to 20th April 2009)ties (Up to 20th April 2009)ties (Up to 20th April 2009)

Transaction with For the Period For the YearRelated Party from 1st April 09 ended March

to December 31, 200931, 2009

Rs. Rs.

(i) Amount received fromBajaj Granite & Marbles - 117,423

(ii) Amount received fromPunchsheel Marbles (P) ltd - 71,302

3. E3. E3. E3. E3. EARARARARARNNNNNIIIIINGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARNGS PER SHARE-[EPE-[EPE-[EPE-[EPE-[EPS]S]S]S]S]

For the Period For the Yearfrom 1st ended

Particulars April 09 to MarchDecember 31, 200931, 2009.

Rs. Rs.

Profit /(Loss) after taxation asper Profit & Loss Account inRupees (599,052) (810,015)

Weighted average number ofEquity Shares Outstanding 8,650 8,650

Basic earnings per share(weighted average) in Rupees(Face Value – Rs 100 per share) (69.25) (93.64)

(Basic & Diluted EPS is same)

198


4.4.4.4.4. GenerGenerGenerGenerGeneral descripal descripal descripal descripal description of leasing arrtion of leasing arrtion of leasing arrtion of leasing arrtion of leasing arrangemenangemenangemenangemenangement:t:t:t:t:

Leased Assets: Mining Rights

Future lease rental payments are determined on the basis ofMinimum Rent payments or Royalty per ton of extractedlimestone whichever is higher, as per the agreement.

Lease payment recognized in the Profit & Loss accountRs. 467103


No provision for current tax is made in view of the losses forthe year. Ultimately the Tax liability of the Company would bedetermined on the basis of its results for the fiscal year endingMarch 31, 2010.

In view of carried forward losses, the Company has deferred taxassets; however, as a matter of prudence and in view of theabsence of virtual certainty of future taxable income, the samehas not been recognized in the financial statements.

6.6.6.6.6. CCCCCONTONTONTONTONTIGENT LIABIGENT LIABIGENT LIABIGENT LIABIGENT LIABIIIIILITY NOLITY NOLITY NOLITY NOLITY NOT PRT PRT PRT PRT PROOOOOVIVIVIVIVIDED FORDED FORDED FORDED FORDED FOR

Demand for land tax for the year 2007-08 and 2008-09 isRs. 38.5 lac per year.

7.7.7.7.7. Company has changed the Method of depreciation from Writtendown value method to straight line method and all assets aredepreciated on the straight line method at the rates prescribedin Schedule XIV of the company Act 1956 on a Pro rata basis.

The difference of Rs. 192,067/- (being excess depreciationcharged in earlier years) arising on account of change in themethod of depreciation has been adjusted to General reservesas existing at the beginning of the period.

8.8.8.8.8. There are no Micro, Small and Medium Enterprises, as definedin the Micro, Small, Medium Enterprises Development Act, 2006to whom the Company owes dues on account of principleamount together with interest and accordingly no additionaldisclosures have been made.

The above information regarding Micro, Small and MediumEnterprises has been determined to the extent such parties havebeen identified on the basis of information available with theCompany. This has been relied upon by the auditors.

9.9.9.9.9. PPPPPaaaaaymenymenymenymenymenttttt to sta to sta to sta to sta to statutortutortutortutortutory Ay Ay Ay Ay Auditorsuditorsuditorsuditorsuditors

Particulars For the period ended For the Yearfrom 1st April 2009 to ended MarchDecember 31, 2009 31, 2009

Audit Fees 50,000 5,000

For other services(Limited Review etc.) 56,000 3,397

TOTAL 106,000 8,397

10.10.10.10.10. ADDITADDITADDITADDITADDITIONAL IIONAL IIONAL IIONAL IIONAL INNNNNFORMFORMFORMFORMFORMAAAAATTTTTION PUION PUION PUION PUION PURRRRRSUSUSUSUSUANT ANT ANT ANT ANT TTTTTO O O O O TTTTTHHHHHE PRE PRE PRE PRE PROOOOOVISIONSVISIONSVISIONSVISIONSVISIONSOF POF POF POF POF PARARARARARAAAAAGRGRGRGRGRAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PAPH 3 & 4 OF PARARARARART IT IT IT IT II OF SCI OF SCI OF SCI OF SCI OF SCHHHHHEDUEDUEDUEDUEDULE LE LE LE LE VI VI VI VI VI TTTTTO O O O O TTTTTHHHHHEEEEECCCCCOOOOOMPMPMPMPMPANANANANANIIIIIES AES AES AES AES ACTCTCTCTCT, 1956, 1956, 1956, 1956, 1956

(A) Sales by class of goods (Net)

Unit For the period For the year ended

from 1ST April 09 to March 31, 2009

December 31, 2009

Quantity Rs Quantity Rs

Lime Stone MT 538 116,427 8,263 1,391,037

Marble khanda MT - - 816 352,536

Marble block MT - - 48 40,417

11.11.11.11.11. PPPPPA RA RA RA RA RTTTTTICUICUICUICUICULARLARLARLARLARS OF LICS OF LICS OF LICS OF LICS OF LICENSEDENSEDENSEDENSEDENSED, I, I, I, I, INSNSNSNSNSTTTTTALLED CALLED CALLED CALLED CALLED CAPAPAPAPAPAAAAACCCCC ITY &ITY &ITY &ITY &ITY &PRPRPRPRPRODUCTODUCTODUCTODUCTODUCTION .ION .ION .ION .ION .

For the period For the yearfrom 1st April, 09 ended Marchto 31 December 31 , 20092009

Licensed Capacity Limestone(MT per day) 300 MT N.A.

Installed Capacity*Limestone(MT per day) 300 MT N.A

Actual Productions-Duringthe Year (Limestone) 538 MT 8200 MT

Actual Productions-During theYear (Marble Khanda) Nil 816 MT

Actual Productions-Duringthe Year (Marble block) Nil 48 MT

*As certified by management and accepted by the Auditors

12. Provision for Site Restoration expenses has not been made inthe accounts, pending removal of the overburden rejects.

13. The current accounting period of for nine months endedDecember 31, 2009 whereas previous accounting period wasfor twelve month ended March 31, 2009. Figures for the currentperiod are therefore, not comparable with corresponding figuresof the previous year.

14. Previous period’s figures are regrouped / restated wherevernecessary to make them comparable with current year’s figures.

Signatures to Schedules 1 to 13

As per our report of even date For & on behalf of the Board





}

199

NNNNNLLLLLCCCCCPLPLPLPLPLADDITIONAL INFORMATION PURSUANT TO PART IV OFSCHEDULE VI TO THE COMPANIES ACT, 1956.



Registration No. U26944RJ1981PU26944RJ1981PU26944RJ1981PU26944RJ1981PU26944RJ1981PTTTTTC00227C00227C00227C00227C00227 State Code 1 7


IIIIII.I.I.I.I. CCCCCapital rapital rapital rapital rapital raised during the yaised during the yaised during the yaised during the yaised during the year (Amounear (Amounear (Amounear (Amounear (Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)


N i l N i l


N i l N i l


(Amount in Rs. Lac)


2 8 . 1 2 2 8 . 1 2

SourSourSourSourSources of Fces of Fces of Fces of Fces of Fundsundsundsundsunds


8 . 6 5 4 . 2 2


N i l N i l



7 . 0 6 N i l


( 0 . 1 ) N i l

Accumulated Losses

5 . 9 9

IVIVIVIVIV..... PPPPPerererererffffformance of Cormance of Cormance of Cormance of Cormance of Companompanompanompanompany (Amouny (Amouny (Amouny (Amouny (Amounttttt in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac) in Rs. Lac)

Turnover Total Expenditure

1 . 1 6 7 . 2 1

PrPrPrPrProfitofitofitofitofit / (-) L / (-) L / (-) L / (-) L / (-) Loss oss oss oss oss BBBBBefefefefefororororore e e e e TTTTTaxaxaxaxax PrPrPrPrProfitofitofitofitofit / (-) L/ (-) L/ (-) L/ (-) L/ (-) Loss oss oss oss oss AAAAAfffffter ter ter ter ter TTTTTaxaxaxaxax

----- 5 . 9 9 - 5 . 9 9

Earning per share (in Rs.) For Share of Rs. 100.00 each Dividend Rate (%)

( 6 9 . 2 5 ) N i l


Item Code No. (ITC Code) 2 5 2 1 0 0 9 0

Product Description E X T R A C T I O N


S A L E O F L I M E S T O N E* Including Share Holders’ Fund

200

NNNNNLLLLLCCCCCPLPLPLPLPLNOTES

(This page has been intentionally left blank)

Himachal Pradesh

Punjab

UttaranchalHaryana

Uttar PradeshRajasthan

GujaratMadhya Pradesh

Bihar

West Bengal

Jharkhand

Chhattisgarh

Orissa

Andhra Pradesh

Maharashtra

Goa

Karnataka

Tamil Nadu

Kerala

Corporate Office

1. Mumbai (Maharashtra)

Cement Plants

2. Bargarh (Orissa)3. Chaibasa (Jharkhand)4. Chanda (Maharashtra)5. Damodhar (West Bengal)6. Gagal I (HP)7. Gagal II (HP)8. Jamul (Chhattisgarh)9. Kudithini (Karnataka)10. Kymore (MP)11. Lakheri (Rajasthan)12. Madukkarai (TN)13. Sindri (Jharkhand)14. Thondebhavi (Karnataka)15. Tikaria (UP)16. Wadi I (Karnataka)17. Wadi II (Karnataka)

Regional Offices

18. Eastern Region (Kolkata)19. Northern Region (New Delhi)20. South & West Region (Pune)

21. Technical Support Services Thane (Maharashtra)

Training CentresACC Academy, ThaneACC Cement Technology Institute, Jamul

Sumant Moolgaokar Technical Institute, Kymore

Sales Unit

ACC Help Centres

Subsidiary Companies

22. ACC Concrete Limited (Maharastra)RMX Plants

23. ACC Mineral Resources Limited(Maharashtra)

24. Bulk Cement Corporation (India) Limited (Maharashtra)

25. Lucky Minmat Limited (Rajasthan)26. National Limestone Company Pvt. Ltd.

(Rajasthan)27. Encore Cements & Additives Pvt. Ltd.

(Andhra Pradesh)

6 7

26

15

19

13

5

18

2

84

10

121

2223

2420

16 17

14

9

25

11

An All India Footprint

3

27

NN.B. This map is as of February 4, 2010. It is illustrative and not drawn to scale.

12

Documents

ACC Annual Report 2009