MIRA INFORM REPORT

Report Date :

15.04.2011

IDENTIFICATION DETAILS

Name :	DALMIA BHARAT SUGAR AND INDUSTRIES LIMITED (w.e.f. 30.09.2010)
Formerly Known As :	DALMIA CEMENT (BHARAT) LIMITED
Registered Office :	P. O. Dalmiapuram, District Tiruchirapalli District – 621651, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	01.11.1951
Com. Reg. No.:	18-640
CIN No.: [Company Identification No.]	L26942TN1951PLC000640
TAN No.: [Tax Deduction & Collection Account No.]	CHED03385E
Legal Form :	A Public Limited Liability Company. The Company's Shares are Listed on the Stock Exchanges
Line of Business :	Manufacturer of Cement, Magnesites, Sugar, Electronics, Wind Energy and Refractories.

RATING & COMMENTS

MIRA’s Rating :

Aa (81)

RATING		STATUS	PROPOSED CREDIT LINE
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large

Maximum Credit Limit :	USD 55106000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well-established and reputed company, having fine track. Available information indicates high financial responsibility of the company. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments. Subject can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	P. O. Dalmiapuram, District Tiruchirapalli District – 621651, Tamilnadu, India
Tel. No.:	91-4329-235123/ 235131
Fax No.:	91-4329-235111
E-Mail :	info@dalmiacement.com kcnarang@dalmiacement.com bsmanian@dalmiacement.com singha@dalmiacement.com dcbl@del2.vsnl.net.in kvmohan@dalmiacement.com Media Queries: corpcomm@dalmiacement.com Investor Queries: investorquery@dalmiacement.com Technical Queries: tech@dalmiacement.com Employment Queries: hr@dalmiacement.com Marketing Queries: marketing@dalmiacement.com General Queries: info@dalmiacement.com
Website :	http://www.dalmiacement.com
Corporate Office :	11^th and 12^th Floors, 'Hansalaya’, 15, Barakhamba Road, New Delhi – 110001, India
Tel. No.:	91-11-23465100/ 200
Fax No.:	91-11-23313303
Plant :	CEMENT PLANTS: Dalmiapuram - 621651, District Tiruchirapalli, Tamilnadu, India Village Tamaraikulam - 621705 District Ariyalur, Tamilnadu, India Village Chinnakormerla – 516434, Mylavaram Mandal, District Cuddapah, Andhra Pradesh, India MAGNESITE PLANT: Dalmia Magnesite Corporation Salem, Tamilnadu, Vellakkalpatti, P.O. Karuppur, Salem – 636012, India WIND FARM: Dalmia Wind Farm Muppandal (Tamilnadu) Aralvaimozhy –629301, District Kanyakumari, Tamilnadu, India SUGAR PLANTS : Dalmia Chini Mills (Unit: Ramgarh) Village Ramgarh - 261403, Tehsil Misrikh, District Sitapur, Uttar Pradesh, India Dalmia Chini Mills (Unit : Jawaharpur) Village Jawaharpur - 261403, Tehsil Sitapur Sadar, District Sitapur, Uttar Pradesh, India Dalmia Chini Mills (Unit : Nigohi) Village Kuiyan, Post Areli – 242407, Tehsil Tilhar, District Shahjahanpur, Uttar Pradesh, India
Electronics Division:	Plot No. 53, 54A, Electronics City, Hosur Road, Bangalore - 560100 Karnataka, India
Regional Office and Customer Care Centres :	Located at: · Chennai · Coimbatore · Madurai · Trichy · Ernakulam · Beangaluru
Branch Office :	Located at: · Salem · Tirunelveli · Villupuram · Pondicherry · Kozhikode · Kollam · Mysore

DIRECTORS

As on 31.03.2010

Name :	Mr. Pradip Kumar Khaitan
Designation :	Chairman and Non Executive Director
Name :	Mr. Jai Hari Dalmia
Designation :	Vice Chairman
Name :	Mr. Yadu Hari Dalmia
Designation :	Vice Chairman
Name :	Mr. Gautam Dalima
Designation :	Managing Director
Name :	Mr. Puneet Dalmia
Designation :	Managing Director
Name :	Mr. Mridu Hari Dalmia
Designation :	Non Executive Director
Name :	Mr. J.S. Baijal
Designation :	Independent Non Executive Director
Name :	Mr. M. Raghupathy
Designation :	Independent Non Executive Director
Name :	Mr. Donald M. Peck
Designation :	Independent Non Executive Director
Name :	Mr. G.N. Bajpai
Designation :	Independent Non Executive Director
Name :	Mr. N. Gopalaswamy
Designation :	Non Executive Director
Name :	Mr. T. Venkatesan
Designation :	Whole Time Director
Name :	Mr. Asanka Rodrigo
Designation :	Alternate Director to Mr. Donald M. Peck

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	6114155	7.53
Bodies Corporate	40950297	50.44
Any Others (Specify)
Trusts	87325	0.11
(2) Foreign
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	2500	--
Financial Institutions / Banks	76490	0.09
Central Government / State Government(s)	68955	0.08
Insurance Companies	2729342	3.36
Foreign Institutional Investors	6368644	7.84
(2) Non-Institutions
Bodies Corporate
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	8175321	10.07
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	679345	0.84
Any Others (Specify)
Overseas Corporate Bodies	1409020	1.74
Foreign Corporate Bodies	4470588	5.51
Non Resident Indians	173116	0.22
Foreign Nationals	188303	0.23
Custodian	1539348	1.90
Trusts	1539348	0.07
Clearing Members	60774
Total	81189303	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of Cement, Magnesites, Sugar, Electronics, Wind Energy and Refractories.

Products :

Product Description	Item Code (ITC Code)
Cement	252329
Refractory	690220
Sugar	170111

PRODUCTION STATUS (As on 31.03.2010):-

Particulars	Unit	Licensed Capacity	Installed Capacity *	Actual Production
Cement	(‘000 Tonnes)	N.A.	8200.00	4074.10
Refractory Products	(‘000 Tonnes)	N.A.	79.50	24.15
Sugar	(‘000 Tonnes)	N.A.	22.50**	202.95
Multilayer Ceramic Chip Capacitors	(Lakh Nos.)	N.A.	1200.00	44.52
Chip Resistors	(Lakh Nos.)	N.A.	1000.00	0.52
Refractories etc.	(‘000 Tonnes)	N.A.	N.A.	48.71
Power	(Million Units)	N.A.	113.52 ***	355.77
Industrial Alcohol	(‘000 KL)	80.00	80.00 ****	5.72

* As certified by the management

** Sugarcane crushed in Tonnes per day

*** MW per hour

**** Capacity in KL per day

Difference in quantitative tally is on captive consumption/ shortage/ excess/ damages etc.

GENERAL INFORMATION

No. of Employees :

3600

Bankers :

· Axis Bank Limited

· Bank of Baroda

· Bank of India

· BNP Paribas

· Canara Bank

· Central Bank of India

· Corporation Bank

· DBS Bank Limited

· HDFC Bank Limited

· The Hong Kong and Shanghai Banking Corporation Limited

· ICICI Bank Limited

· IDBI Bank Limited

· Indian Bank

· Landesbank Baden- Wurttemberg

· The Lakshmi Vilas Bank Limited

· Oriental Bank of Commerce

· Punjab National Bank

· State Bank of India

· State Bank of Mysore

· State Bank of Patiala

· State Bank of Travancore

· Union Bank of India

· United Bank of India

· Vijaya Bank

· Yes Bank limited

Facilities:

Secured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
A. Redeemable Non-Convertible Debenture	3933.330	4233.330
B. Terms Loans
i. From Banks	18906.340	13834.830
ii. From others	2376.430	913.770
C. Working Capital Loans	2185.910	1868.950
Total	27402.010	20850.880

1) Debentures referred to in A above to the extent of:

i) Series IXA Rs. Nil (Rs. 166.67 millions) are secured by a first pari-passu charge on the movable and immovable properties of Cement unitat Dalmiapuram, Magnesite unit and Jamnagar property.

ii) Series IXB Rs. 133.33 millions (Rs.266.66 millions) are secured by a first pari-passu charge on the movable and immovable properties of Cement unit at Dalmiapuram, Magnesite unit and Jamnagar property and redeemable on 27^th August, 2010.

iii) Series XA and XB Rs. 800.00 millions (Rs. 800.00 millions) are secured by a first pari-passu charge on whole of the movable and immovable properties (except book debts) of Cement unit at Dalmiapuram, Magnesite unit and Jamnagar property and redeemable in three yearly installments in the ratio of30:30:40 commencing from 17^th December, 2012.

iv) Series Xl Rs. 500.00 millions (Rs. 500.00 millions) are secured by a first pari-passu charge on all the movable and immovable properties of Cement unit at Dalmiapuram and Magnesite unit (except stock and book debts) and Jamnagar property and redeemable in three yearly installments in the ratio of 30:30:40 commencing from 15th May2013.

v) Series Xl A Rs. 500.00 millions (Rs. 500.00 million) are secured by a first pari-passu charge on all the movable and immovable properties of Cement Unit at Dalmiapuram and Magnesite unit (except stock and book debts) and Jamnagar property and redeemable in three yearly installments in the ratio of3O:30:40commencing from 15th October2013.

vi) Series XII Rs. 1000.00 millions (Rs. 1000.00 millions) are secured by mortgage and charge on first pari-passu basis on all the immovable and movable assets excluding current assets both present and future of the Company’s Sugar unit at Jawaharpur and Nigohi and redeemable in three yearly equal installments commencing from 30^th September, 2014.

vii) Series XIII Rs. 1000.00 millions (Rs. 1000.00 millions) are secured by a first pari-passu charge on the Immovable properties of Cement unit at Dalmiapuram and Jamriagar property and redeemable in three yearly equal installments commencing from 8^th May, 2014.

2) Term Loans from Banks referred to in B (i) above to the extent of

i) Rs. Nil (Rs. 1724.78 millions) are secured by hypothecation of all the movable fixed assets of Cement unit at Dalmiapuram and Magnesite units and mortgage on immovable properties of Cement unit at Dalmiapuram on pari-passu basis.

ii) Rs. 10410.00 millions (Rs 8210.00 millions) are secured by exclusive first charge on land and building and hypothecation of all the fixed assets of Cement units at Cuddapah and Ariyalur excluding assets charged to working capital lenders and Vertical roller mills and other machineries and equipments for projects at Cuddapah and Ariyalur acquired under foreign currency loan.

iii) Rs. 2000.00 millions (Rs. 2700.00 millions) are secured by first pan passu charge on land and building and hypothecation of plant and machinery of sugar and co-generation units at Jawaharpur and Nigohi, distillery at Jawaharpur and co-generation unit at Ramgarh.

iv) Rs. 700.98 millions (Rs. 89157 millions) are secured byway of exclusive charge on Vertical roller mills and other machineries and equipments for projects at Cuddapah and Ariyalur acquired through this loan. The Loan has been availed in foreign currency.

v) Rs 295.26 millions (Rs 308.10 millions) is secured by residual charge on the movable and immovable fixed assets of the Sugar units.

vi) Rs.0.1 0 millions (Rs. 0.38 millions) is secured by hypothecation of vehicles.

vii) Rs 2000.00 millions (Rs. Nil) is secured by subsequent and subservient charge on movable fixed assets of all cement units of the company.

viii) Rs. 1500.00 millions (Rs. Nil) is secured by a subservient charge on the assets of Cement division.

ix) Rs. 2000.00 millions (Rs. Nil) is secured by subservient charge on entire fixed assets excluding vehicles of Sugar units at Jawaharpur and Nigohi and subservient charge on Plant and Machinery at Ramgarh Sugar Unit.

3) Term Loan from others referred to in B (ii) above to the extent of:

i) Rs 883.81 millions (Rs. 321.08 million) are secured by second exclusive charge on movable and immovable properties of the sugar unit at Ramgarh.

ii) Rs. 1492.62 millions (Rs. 592.69 millions) are secured by a first pari-passu charge on the movable and immovable properties of Cement unit at Dalmiapuram.

4) Working capital loans:

i) Includes external commercial borrowing amounting Rs.1893.50 millions (Rs.1831.13 million) which is secured by SBLC issued by working capital lenders.

ii) Balance loans amounting Rs.292.41 millions (Rs.37.82 million) are secured by hypothecation of inventories and other assets in favour of the participating Banks ranking pari-passu on inter-se-basis

Unsecured Loans	31.03.2010 Rs. In Millions	31.03.2009 Rs. In Millions
A. Fixed Deposits	302.060	31.360
Add: Interest accrued and due on above	2.840	2.110
B. Commercial Paper (Short-term)	0.000	1000.000
C. Short Terms Loans From Banks	0.000	700.000
D. Other Loans
From Others * Includes from Directors Rs.1.750 millions	797.240	798.280
Total	1102.140	2531.750

Banking Relations :

Good

Auditor 1 :

S.R. Batliboi and Company

Chartered Accountants

Auditor 2 :

S.S. Kothari Mehta and Company

Chartered Accountants

Internal Auditors :

KPMG

Axis Risk Consulting Services Private Limited

T.R. Chadha and Company

Memberships :

Confederation of Indian Industry

Joint Ventures :

Khappa Coal Company Private Limited

Associates :

OCL India Limited

Subsidiaries :

· Kanika Investment Limited

· Ishita Properties Limited

· D.I. Properties Limited

· Geetee Estates Limited

· Avnija Properties Limited

· Shri Rangam Properties Limited

· Hemshila Properties Limited

· Himshikhar Investment Limited

· Dalmia Minerals and Properties Limited

· Shri Radha Krishna Broker and Holdings Limited

· Dalmia Power Limited (Formerly known as Seeta Estates and Brokers Limited)

· Dalmia Solar Power Limited (Formerly known as Shri Rangam Brokers and Holdings Limited)

· Arjuna Brokers and Minerals Limited

· Dalmia Bharat Enterprises Limited (Formerly known as Sri Kesava Mines and Minerals Limited)

· DCB Power Ventures Limited (Formerly known as Sri Madhava Minerals and Properties Limited)

· Sri Shanmugha Mines and Minerals Limited

· Sri Swaminatha Mines and Minerals Limited

· Sri Subramanya Mines and Minerals Limited

· Sri Trivikrama Mines and Properties Limited

· Sri Dhandauthpani Mines and Minerals Limited

· Sri Madhusudana Mines and Properties Limited

· Dalmia Sugar Ventures Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
114726820	Ordinary Shares	Rs.2/- each	Rs.229.450 Millions
8573180	Unclassified Shares	Rs.2/- each	Rs.170.550 Millions
	Total
			Rs.400.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
80939303	Ordinary Shares	Rs.2/- each	Rs.161.880 Millions

NOTES:

Of the above Shares:

(i) 6651410 Shares were allotted as fully paid-up pursuant to arrangements/scheme of conversion, without payments being received in cash; and

(ii) 27631245 Shares were allotted as fully paid-up by way of Bonus Shares by capitalisation of Reserves.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2010	31.03.2009	31.03.2008
SHAREHOLDERS FUNDS
1] Share Capital		161.880	161.880	161.690
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		13614.500	12520.120	11309.740
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		13776.380	12682.000	11471.430
LOAN FUNDS
1] Secured Loans		27402.010	20850.880	10500.700
2] Unsecured Loans		1102.140	2531.750	5332.660
TOTAL BORROWING		28504.150	23382.630	15833.360
DEFERRED TAX LIABILITIES		2891.140	2287.000	1630.180
TOTAL		45171.670	38351.630	28934.970
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		25841.690	19685.040	13247.240
Capital work-in-progress		2475.790	6974.680	5012.990
INVESTMENT		8009.790	6674.810	6138.270
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7067.000	5309.090	4915.990
	Sundry Debtors	2138.200	2140.460	1050.590
	Cash & Bank Balances	2108.490	547.220	870.370
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	2392.090	3412.110	4331.980
Total Current Assets		13705.780	11408.880	11168.930
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	3908.960	5598.240	5483.090
	Other Current Liabilities	806.070	549.160
	Provisions	146.350	244.380	1149.370
Total Current Liabilities		4861.380	6391.780	6632.460
Net Current Assets		8844.400	5017.100	4536.470
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		45171.670	38351.630	28934.970

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	21542.570	17535.800	14806.680
		Other Income	508.110	(108.050)	1645.540
		TOTAL (A)	22050.680	17427.750	16452.220
Less	EXPENSES
		(Increase)/Decrease in Stocks	(1672.620)	(31.530)	(1895.120)
		Raw Material Consumed	7561.470	3422.120	4663.810
		Purchase of Trading Goods	136.540	97.300	37.620
		Personnel Expenses	1142.200	930.510	848.660
		Operating and Other Expenditure	9766.560	8068.140	7592.250
		TOTAL (B)	16934.150	12486.540	11247.220
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		5116.530	4941.210	520.500
Less	FINANCIAL EXPENSES (D)		1755.900	1469.540	0.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		3360.630	3471.670	5205.000
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1319.800	872.300	864.030
	PROFIT BEFORE TAX (E-F) (G)		2040.830	2599.370	4340.970
Less	TAX (H)		670.960	1013.140	869.450
	PROFIT AFTER TAX (G-H) (I)		1369.870	1586.230	3471.520
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		7090.620	6117.660	3481.980
	Add: Transfer from Debenture Redemption Reserve		125.000	0.000	0.000
Less	APPROPRIATIONS
		General Reserve	200.000	200.000	350.000
		Debenture Redemption Reserve	129.170	129.170	107.500
		Dividend
		- Interim Dividend	80.940	80.940	202.110
		- Proposed Dividend	80.940	161.880	121.270
		- Dividend Distribution tax thereon	27.200	41.280	54.960
	BALANCE CARRIED TO THE B/S		8067.240	7090.620	6117.660
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	124.650	52.840	102.700
	TOTAL EARNINGS		124.650	52.840	102.700
	IMPORTS
		Raw Materials	1548.190	562.810	2034.650
		Components and Spare Parts	1576.050	2852.890
		Capital Goods	360.000	1168.220
	TOTAL IMPORTS		3484.240	4583.920	2034.650
	Earnings Per Share (Rs.)
	- Basis		16.92	19.61	69.70
	- Diluted		16.92	19.61	69.51

QUARTERLY RESULTS

PARTICULARS	30.06.2010 (1^st Quarter)	30.09.2010 (2^nd Quarter)	31.12.2010 (3^rd Quarter)
Audited / UnAudited	UnAudited	UnAudited	UnAudited
Net Sales	5764.300	1306.400	1850.800
Total Expenditure	5274.500	1437.600	1464.000
PBIDT (Excl OI)	489.800	(131.200)	386.800
Other Income	159.000	3.700	5.900
Operating Profit	648.800	(127.500)	392.700
Interest	615.400	106.000	93.400
Exceptional Items	0.000	0.000	0.000
PBDT	33.400	(233.500)	299.300
Depreciation	402.500	105.200	105.100
Profit Before Tax	(369.100)	(338.700)	194.200
Tax	(178.200	(108.200)	77.100
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	(190.900)	(230.500)	117.100
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	(190.900)	(230.500)	117.100

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	6.21	9.10	21.10
Net Profit Margin (PBT/Sales)	(%)	9.47	14.82	29.32
Return on Total Assets (PBT/Total Assets}	(%)	5.16	8.36	17.78
Return on Investment (ROI) (PBT/Networth)		0.15	0.20	0.38
Debt Equity Ratio (Total Liability/Networth)		0.53	2.35	1.96
Current Ratio (Current Asset/Current Liability)		2.82	1.78	1.68

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject is an India-based company. The company is one of the largest sugar manufacturer with 22,500 TCD cane crushing capacity. Their plants are located at Ramgarh, Jawaharpur and Nigohi in Uttar Pradesh with the production capacity of 7,500 TCD each. Subject was established in 1935 by Jaidayal Dalmia. In the year 1939, the cement unit was started, with the installed capacity of 250 tonnes per day. They manufactured cement by semi-dry process. The machinery used for cement production was imported from Germany. In the year 1949, they installed a 500 tonnes per day wet process kiln supplied by FLS Smidth, Denmark. The company was originally incorporated in the year 1951 with the name Dalmia Cement (Bharat) Limited In the year 1958, the company commenced their Magnesite operations. In the year 1959, the company undertook the expansion in the cement manufacturing plant with installation of another 500 tonnes per day wet process Folax kiln supplied by F L S Smidth, Denmark. In the year 1970, the company acquired Govan Travels. In the year 1982, the company installed a 200 tonnes Vertical Shaft Kiln using Fuel Slurry process. In the year 1986, the company improved their packaging and presentation by using ply bags for cement. In the year 1987, they used lignite as fuel and reduced their variable cost. Also, they expanded 1500 TPD dry kiln process. In the year 1993, the company started their wind farm. In the year 1997, they commissioned the VRM-Cement Grinding Mill. They completed the 3300 TPD-KHD upgradation in the 2002. During the year 2003-04, the company installed a new magnetic separator plant at a cost of Rs.3.000 millions, which would help recycling of earlier rejected material. The company developed new export markets in the Middle East and South East Asia during the year. During the year 2004-05, the company received the trial order of Magnesia-Carbon Bricks from the Vizag Steel Plant. In March 2005, they completed the installation of the 27 MW Captive Thermal Power Plant and was commissioned during the year 2005-06. The company expanded the production capacity of cement by 2,266,000 tonnes to 3,500,000. Also, they expanded the production capacity of sugar by 2500 TCD to 7500 TCD. Dalmia Sugar Limited, a subsidiary company got amalgamated with the company with effect from June 8, 2005. During the year 2006-07, the company commissioned two bagasse-based co-generation power plants at Jawaharpur and Nigohi - each of 27 MW. These newly installed generation capacities have not only given the company significant operational advantages but also opened new revenue streams. They have signed a Power Purchase Agreement (PPA) with the Uttar Pradesh Power Corporation Limited (UPPCL). Dalmia Cement (Meghalaya) Limited, a subsidiary company got amalgamated with OCL India Limited pursuant to the orders of the Gauhati High Court vide order dated October 15, 2007. Consequent to this merger, the company acquired 21.7% strategic stake in OCL India Limited During the year 2007-08, the company set up two new cement plants at Kadapa (Andhra Pradesh) and Ariyalur (Tamil Nadu) of 2.25 MnTPA each. In December 2008, Eswar Cements Private Limited was amalgamated with the company. During the year 2008-09, the company increased the production capacity of Cement by 3 MnT to 6.5 MnT. Also, they increased the production capacity of Power from 95.52 million units to 113.52 million units. During the year fourth quarter of the financial year 2008-09, the company commissioned cement plant in Kadapa (Andhra Pradesh) with the production capacity of 2.5 MnT. During the year 2009-10, the company commissioned the cement plant in Ariyalur (Tamil Nadu) with the production capacity of 2.5 MnT. In January 2010, the company increased their stake in OCL India Limited from 21.7% to 45.4% through inter-se transfer. In May 2010, the company and Kohlberg Kravis Roberts and Company L P signed a definitive agreement under which KKR agreed to invest up to Rs.7500.000 millions in the company's wholly owned unlisted subsidiary which will house post restructuring the company's 9 MTPA cement manufacturing capacity. As per scheme of arrangement, the company de-merged the cement business, refractory business, thermal power business and certain other businesses (collectively the Demerged Undertakings) into Dalmia Bharat Enterprises Limited Dalmia Bharat Enterprises Limited is presently wholly owned subsidiary of the company. In order to reflect the post restructuring businesses, the name of the company was changed from Dalmia Cement (Bharat) Limited to Dalmia Bharat Sugar and Industries Limited with effect from September 7, 2010. During the year financial year 2010-11, the company installed multi-fuel boilers at Jawaharpur to enable seamless power generation during off-season.

 
SUBSIDIARIES
 
Accordingly the Directors' Report and audited accounts of the Company's Subsidiaries, Kanika Investment Limited, Ishita Properties Limited, Shri Rangam Properties Limited, Geetee Estates Limited, D.I. Properties Limited, Avnija Properties Limited, Hemshila Properties Limited, Himshikhar Investment Limited, Arjuna Brokers and Minerals Limited, Shri Radha Krishna Brokers and Holdings Limited, Dalmia Solar Power Limited (formerly: Shri Rangam Brokers and Holdings Limited), Dalmia Minerals and Properties Limited, Dalmia Power Limited (formerly: Seeta Estates and Brokers Limited), Dalmia Bharat Enterprises Limited (formerly: Sri Kesava Mines and Minerals Limited), Sri Shanmugha Mines and Minerals Limited, Sri Subramanya Mines and Minerals Limited, Sri Swaminatha Mines and Minerals Limited, DCB Power Ventures Limited (formerly: Sri Madhava Minerals and Properties Limited), Sri Dhandauthapani Mines and Minerals Limited, Sri Madhusudana Mines and Properties Limited, Sri Trivikrama Mines and Properties Limited, Dalmia Sugar Ventures Limited, and ultimate subsidiaries, Dalmia Cement Ventures Limited, Cosmos Cements Limited, Sutnga Mines Private Limited, Rajputana Properties Private Limited and Golden Hills Resort Private Limited for the year ended 31st March 2010 are not being enclosed with this Annual Report. Any Member desiring to inspect the detailed Annual Reports of any of the aforementioned subsidiaries may inspect the same at the Head Office of the Company and that of the subsidiaries concerned. 
 
Avnija Properties Limited (APL), a wholly owned subsidiary of this Company, into which it is proposed to demerge the cement business, has entered into definitive agreements with M/s. KKR Mauritius Limited (KKR) under which fresh equity subscription will be infused into APL to the extent of Rs.7,500 millions, intranches, for an equitys take of up to 21%. The investment by KKR will be subject to necessary approvals and fulfilment of the agreed conditions precedent. Besides aforementioned, the definitive agreements also contain covenants on affirmative rights to KKR, appointment of nominee directors in APL and exit option including through Initial Public Offering by APL.

MANAGEMENT DISCUSSION AND ANALYSIS
 
MANAGING THEIR BUSINESS
 
Economic Overview
 
India is fast developing into a laizzes-faire open-market economy, yet traces of its self-sufficient and reserved past remain. The much-lauded economic liberalisation of the nineties including reduced controls on foreign trade and investment has accelerated the country's growth, giving India a 'reforms dividend' of more than 8% growth in the last 4 years, despite the interruption of the 2008 global financial markets meltdown. This growth has come from both manufacturing and services industries, on the back of rising domestic consumption, investments and increasing exports. Most importantly, the growth has been supported by progress made in the overall productivity gains of the economy.
 
The strength of India's age demographics in which the high proportion of English comprehending young working professionals are growing in numbers, and a massive increase in the number of households with discretionary spending power led to retail and domestic demand becoming the real impetus of the economy. With approximately 55% of India's workforce earning their livelihood and producing around 19% of India's GDP, it continues to be a key part in the Indian economy. Going forward, the virtuous demographic income dynamics will be dependenton the rapid employment growth in manufacturing and services industries.
 
India is uniquely positioned amongst the emerging markets in which the domestic market and resource base offers a reliable buffer against global economic turbulence. In 2010, the government hopes to not only focus on the fiscal stimulus but also to address the deficit reduction over next two years. Further, in part to offset the deficit, it has proposed limited privatisation of government-owned industries. In the long-term, India is set to face a myriad of compound challenges that include inadequate infrastructure, limited employment opportunities as well as inadequate basic and higher education structure. In this respect, great emphasis is being placed in the development of both social and physical infrastructure. With the rise in spending in upgrading India's overall infrastructure and in the face of an ever increasing affluent populace with rising consumption and dwelling development, subject is aptly positioned to capture the growth opportunity from the nation-building and robust consumption story of the Indian economy.
 
Subject is a multi-disciplined business house with a core focus on the cement and sugar businesses. Basec on 7 decades of careful stewardship the Company has evolved into sizeable entity, scaling up its business to tap into the India's infinite potential. From uninhibitec pioneering spirit; a loyal and motivated workforce, well-established brands; deeply penetrated markets; time-tested operational skill sets; improving balance sheet; supportive investor base; and a vision to scale new heights for becoming a multi billion dollar power house, subject is well positioned to act upon its growth ambitions while servicing the society at large.
 
Business Overview: Cement
 
MARKET DEVELOPMENTS
 
After China, India is the second largest producer of cement in the world. With a high long-term CAGR of 8% and low per-capita consumption by comparison, the industry offers significant growth potential.
 
During FY10, the cement production in the country stood at 200 million tonnes (MnT), as compared to 181 MnT in FY 09, representing a 10% growth on a YOY basis. All India demand improved significantly, recording a growth of 11% in FY 10 to 197 MnT, up from 178 MnT in FY09, leaving all pleasantly surprised.
 
Over the last 10 years, demand growth has generally outpaced growth in capacity additions. Key demand drivers of the Indian cement industry are an upbeat real estate market; rise in infrastructure spending; government programmes such as the National Rural Employment Guarantee and low cost housing in urban and rural areas backed by increasing nuclear family culture and ever growing working population.
 
A resulting high demand outlook in turn has attracted existing players and new entrants across regions to add new capacity. At an all India level, approximately 46 MnT of capacity was added in FY10, taking India's actual installed capacity to 265 MnT. Of this additional capacity, approximately 44% was added in the Southern region, totaling 20 MnT, and 23% in the Eastern region, the two key markets that subject participates in, directly and through its strategic investments. 
 
PERFORMANCE REVIEW
 
During FY10, despite tough market conditions, subject recorded a strong increase in cement volumes, up 20% to 4.1 MnT, over four times the Southern region growth rate. This helped the cement Net sales to increase by 12% to Rs. 14,493 million, compared to Rs. 12,927 millions in FY09. EBITDA from the Cement business declined by 14% to Rs. 3,781 million, compared to Rs.4,408 millions due to lower realisations as well as utilisation levels. Net Sales Realisation/T declined by 7% to Rs. 3,543/T. With a 32% rise in freight costs, EBITDA/T recorded a decline of 26% to Rs. 948/T* from 
 
1,279/T in FY09. Employee costs were also up on account of increase in manpower at new plants in Ariyalur and Kadapa.
 
Fall in coal prices in the year had a positive impact on Power and Fuel costs, which were down 11% on per tonne basis in FY10, compared to last year. Overall, material costs after adjustment of stocks was Rs. 367/T, up from Rs. 249/T last year, impacting profitability of the segment.
 
OPERATIONAL HIGHLIGHTS
 
To support the Company's growth aspirations in the Southern region of India, 5 MnT of additional capacity has been added in the last couple of years. In FY10, 2.5 MnT plant was commissioned in Ariyalur. This is in addition to the 2.5 MnT plant commissioned in Kadapa in 4Q09.
 
For FY10, the demand for cement in South remained generally subdued, clocking a modest growth of just 5% to 57 MnT. The demand from Andhra Pradesh and Karnataka was particularly slow to take-off due to the political fluxresulting in the delay of several state infrastructure projects. As a result, the Company has judiciously paced the ramping up of both the plants after attentively observing the overall market demand situation.
 
Tamil Nadu and Kerala accounted for 73% of dispatches (FY10) and continue to remain subject's traditional and core markets. About 23% was dispatched to new markets of Karnataka and Andhra Pradesh and balance to other smaller regions. For FY10, the Company's market share in the key markets of Tamil Nadu and Kerala together stood at around 11.6%, while in the emerging markets of Karnataka and Andhra Pradesh, the Company was able to garner 4.4% and 2.4% market share, respectively.
 
Post commissioning of the 27 MW of thermal power plant, the company will be able to generate 72 MW of power in the Tamil Nadu plants, catering to both the captive consumption requirements and the sale of surplus power, if any, to the state electricity grid. In FY10, there was sale of surplus power from the plant at DPM to the tune of 66.4 million units, contributing to profitability of the segment.
 
With new capacities commissioned, the company foresees steady growth as new dispatches gradually begin to contribute to volumes.
 
Optimising Cement Production Mix
 
The capacity utilisation at Dalmiapuram plant remained high though the new plants at Kadapa and Ariyalur have seen slow ramp up due to market conditions.
 
In the year, subject focused on improving its product mix, aligning itself with the market dynamics. PPC accounted for 66% of the total cement production, while OPC accounted for 31%. Balance pertained to Special Cements which garner higher realisations. The Cement Clinker ratio for the Company stood at 1.28 in FY10, compared to 1.31 a year earlier due to this shift.
 
Energy Efficient
 
Over the years, subject has adopted modern technologies to increase profitability and help maintain an ecologically balanced environment in and around its cement plants. With an average power consumption of 77 Units/T of cement produced, as opposed to the industry average of about 80-85 Units/T, subject enjoys one of the lowest per tonne power consumption ratios in the business. The industry's benchmark power efficiency set by the Company is derived from process optimisation and the use of new technical concepts  including robotics for Quality Control sampling and statistical process control.
 
Improving Logistics
 
The Company has also taken several improvement measures in the logistics of both inbound and outbound movement of materials to become more efficient and cost effective. Operation costs have improved through maximised use of conveyor belts from mining locations to plants.
 
KEY INVESTMENTS AND INITIATIVES
 
Endorsing the Company's confidence in the Eastern region and to mitigate its risk from being in single region, subject increased its strategic stake in OCL from 21.7% to 45.4% during FY10 by buying out subject promoters' personal holdings in OCL at market price.
 
OCL recorded another good year, with 23% increase in Net sales, which stood at Rs. 13,742 million. PAT increased by 41% to Rs. 1,637 million, driven by better realisations and higher volumes. None the less there were pressures from the Refractory business of the Company, which contributed 19% to revenues and 8% to EBITDA of OCL. Refractory EBITDA was down 8% to Rs.308 millions in FY10.
 
GROWTH PLANS
 
Dalmia aspires to become one of the Top 5 cement players in India by FY13. The Company intends to do this by strategically developing an additional 10 MnT cement capacity in a phased manner and it is already in the early stages of establishing a blue print for next phase of expansion. Pre-project activity in identifying and incubating new sites are well on their way, with environmental clearances being sought for new  identified prospective sites, under DCVL Project Pipeline for a National Footprint
 
The Cement business is characteristically a regionally bound business based on the economic viability of transporting the product. With rising transportation cost, one cannot viably sell a particular plant's production beyond a certain distance. From predominantly being based out of Tamil Nadu, Dalmia aspires to grow into a Pan-India, multi regional cement major.
 
Subject looks forward to investing into this business particularly when the cycle is soft, as it facilitates the project to be executed some what faster and with lower resources. Subject firmly believes in the India growth story led by increasing infrastructure and real estate spend. To that extent, while the industry will continue to experience short-term cycles, the market is expected to witness a secular long-term growth trend in cement demand.
 
OUTLOOK
 
Short-Term
 
With 46 MnT of the new addition coming on stream in India in FY10, coupled with generally decreasing capacity utilisation rates, the industry has ended FY10 by facing a scenario where supply will temporarily be exceeding demand. As a result, capacity utilisation rates are likely to remain under pressure until the second half of FY11. The ensuing price volatility however is expected to be a short term phenomenon due to the latent strong demand from a developing and emerging country such as India.
 
Over the years, it has been seen that short term down cycles are a regular feature of the Cement industry. With many decades of experience under its belt, the Group has the resilience and mettle to see through the impending down cycle as it has done some any a times in the past.
 
Long-Term
 
The key drivers of the Indian cement industry are an upbeat real estate market; the rise in infrastructure spending; government programmes and low cost housing in urban and rural areas. Post the 2009 elections, the Indian electorate sent a clear mandate for development and the growth momentum in India continued during FY10.
 
The 'next trillion dollar' GDP era, which coincides with India's Eleventh Five Year Plan (2008-12), is expected to be driven by two main factors-high inclusive real GDP and infrastructure growth.
 
The markets of Tamil Nadu, Kerala and Maharashtra are likely to remain strong and as other markets such as
 
Andhra Pradesh and Karnataka pick up momentum, one can expect reasonable growth going forward. The overall Indian economy is expected to grow consistently over the next 10 years at approximately 9% CAGR, with a possibility of an upside leading to an acceleration in demand that can produce positive surprises of creating better than normal demand and profit cycles.
 
Cement demand is also expected to enter a new growth trajectory, driven by a structural shift in demand drivers. It is widely believed that the cement industry is at an inflection point as growth trajectory is estimated to shift upwards from its historical average of 8% to low double digits over next 5 years. All the ingredients are in place for the cement industry to move from a cyclical to a secular growth story, leading to higher pricing and profitability.
 
Currently India produces approximately 200 MnT, which is well below the estimated requirement of around 500 MnT in 10 years time. With approximately 46 MnT added during FY10 and another 45 MnT expected to come on stream next year, India will still require substantial investment in the cement sector to keep up with the growing demand. With the spectre of a slower ramp up and even a potential fall in the pace of capacity addition, the supply visibility over the next 10 years period is less clear.
 
Historically, a long phase of under investment has been a catalyst for the return of pricing clout to the industry. Since there are no major visible capacity additions after FY12, widely anticipated as the foundation for the next up-cycle, and since new capacities typically take long to develop and stabilise, subject is seamlessly well positioned to capitalise on its expanded capacities.
 
In time, subject aspires to be counted amongst the top 5 players in the Indian market. With good hygiene factor coming out of strong HR practices and a solid value system subscribing to transparency and good corporate governance, subject is expected to become a player to reckon with. On the back of its proven execution strength of adding 5 MnT over the last year and with a professional and a dedicated management team which is hungry to grow the business responsibly, subject is confident of attaining a leadership position in the years to come.
 
Business Overview: Sugar
 
MARKET DEVELOPMENTS
 
Over the last 15 years, global sugar production has grown at a CAGR of 2%, keeping pace with consumption. However, the revised USDA (United States Department of Agriculture) sugar production estimates in Brazil the largest producer of sugar, dropped by 2 MnT for the year 2009-10. A steep 12% drop in world production during Sugar Year (SY) 2009, resulted in a new high for sugar prices in 29 years. The fall in global prices was primarily due to low sugar production (14.7 MnT) in India in SY09. India is the largest consumer of sugar in the world. Its consumption at 22 MnT accounts for 16% of the global consumption of 155 MnT. Any change in the domestic production impacts the global industry dynamics. However, higher sugar prices led to slight improvement in cane acreage in SY10, resulting in rise in production, which is anticipated to reach 18.7 MnTin SY10.

Traditionally, India has proved largely self-sufficient in meeting the domestic sugar demand. Nonetheless, the country has served as an occasional importer and exporter of sugar, in response to the vagaries of the weather conditions. During FY10, India imported sugar to fend against the projected supply deficit.
 
During  the year, speculations about a severe supply shortage within the industry resulted in a hike in the domestic sugar prices. In September 2009, domestic sugar prices increased 73% from the previous year and 132% from September 2007. The Indian Government introduced policies to ensure affordable sugar prices to consumers as well as adequate returns to cane producers and sugar mills. The Government sought to rein in prices through releases from buffer stocks, eliminating duty payments on sugar imports and prohibiting excessive stockholding by private agents.
 
With a lower than anticipated deficit, no import duties and already high sugar prices based on weak market sentiments, the domestic sugar industry witnessed a buoyant FY10.
 
PERFORMANCE REVIEW
 
The Company harnessed decent set of results from an up-cycle in the domestic sugar industry during FY10. During the fiscal, the integrated sugar business of subject recorded net sales to the tune of Rs.5,779 million, registering a growth of 63% from the previous year. Average realisations increased by 58% to Rs. 27,076 per ton as compared to Rs. 17,139 per ton during the last fiscal. Integrated Sugar EBITDA stood at an impressive Rs.982 millions for the year under consideration, recording 62% growth.
 
OPERATIONAL HIGHLIGHTS
 
Subject operates three sugar manufacturing units with a total installed capacity of 22,500 tons of cane crush per day, leading to a potential capacity of about 300,000 MnT per annum. With 63% growth in net sales and 13% growth in sales volumes, the sugar business of the Company displayed a commendable performance during FY10. Such noteworthy figures stem from two factors. Firstly, sugar prices witnessed a steep rise, in anticipation of a demand-supply deficit. Secondly, the Company recorded higher sales volume contributed by processing of imported raw sugar. In wake of the prevalent market sentiment at that time, the Company recorded imports of over 77,000T of raw sugar at an average contract price of over US$ 500 per ton. The Company processed a total of over 66,000 T of imported raw sugar. The crushing season lasted for 107 days during the year up from 98 days in the previous year. Consequently, sugar production (including processed raw sugar) during the year has seen a significant improvement of 92%; up from 1.08 lac T last year to 2.03 lac Tin FY10. There had been an improvement in the Company's recovery rates too, which improved by 34 basis points to 9.2% compared to last year.
 
Additionally, the Company's profitable performance can also partly be attributed to the cost control measures that effectively controlled the fixed expenses. Sugar cane accounts for 70% of the total production cost. During FY10, the cost of sugarcane touched Rs. 2,310 per quintal of cane, on an average, as compared to Rs. 1,390 during the previous fiscal. 
 
Cogeneration and Distillery
 
Subject operates a cogeneration capacity of over 79 MW and a distillery capacity of about 80 KL/day. There was marginal improvement of 3% in Gross Power generation in FY10 to 200 million units from 195 million units in FY09 to save bagasse for off season generation and raw sugar processing. Net power exported during the year increased to 136 million units from 132 million units with average operating period of 132 days. During the fiscal under consideration, the realisation from power generation was positively impacted due to an increase in the average rates for power by 28% to Rs.3.86/unit, caused by an upward revision in the power tariff rates to Rs.3.92 per unit from Rs. 3.10 per unit earlier.
 
Production in the distillery unit in FY10 was over 5,700 KL while sales were higher to the tune of 6,300 KL The average realisation improved to Rs.27 per litre from Rs. 25 per litre in the previous year.
 
KEY INITIATIVES
 
The Energy Policy 2009 notified by the State Government has allowed cogen power plants to use coal or gas for power generation in the off-season and of this output, 50% of such power can be sold under open access. Accordingly, the Company identified the opportunity of upgrading boilers to multi fuel in order to benefit from changes in the regulations. It initiated the process of upgrading the boiler at Jawaharpur to multi-fuel boiler. This measure is not only expected to help in extending the duration of cogen plant operations but is also expected to help in raw sugar processing during the off season. As a result, the overall realisation and capacity utilisation rates have improved for the Company. To offset the shortage of bagasse during the off season, the Company used other alternate fuels as well. Sugar is the first division in the Group to introduce 5S in FY10 and Ramgarh unit has been registered as Clean Development Maintenance (CDM) project.
 
GROWTH PLANS
 
Over the years, subject has successfully developed an integrated model for its sugar business, with an efficient mix of resources. Going forward, the Company endeavours to increase its sugar processing volumes and it plans to maximise its capacity utilisation for both sugar and power.
 
OUTLOOK
 
India is the largest consumer and the second largest producer of sugar in the world. Increased consumption, followed by a subsequent price rise has added a fillip to the production of sugar as farmers can now expect higher returns. Higher sugarcane prices in the current season have led to increase in allocation of area under sugar cultivation by approximately 20%, which will lead to higher sugar production next season. All India sugar production is expected to be in the range of 24-25 MnT in SY11. However, consumption is likely to go up marginally. Higher sugar production will lead to higher volumes for the Company though realisations may be subdued. Subject is gearing itself to counter the challenges that lay ahead. Its cogeneration capacities serve as a hedge against the inherently cyclical nature of the sugar business. Higher crushing in the next season could lead to higher power generation with increased availability of fuel which could impact margins positively.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE 1ST QUARTER ENDED 30^thJUNE, 2010

(Rs. in millions)

Particulars	For the Quarter ended (Unaudited)
	30.06.2010
1 Income
(a) Gross Sales	6230.900
Less: Excise Duty	571.300
(b) Net Sales	5659.600
(c) Other Operating Income	104.700
Total Income	5764.300
2 Expenditure
(a) (Increase) / Decrease in Stock in trade and work in progress	1568.800
(b) Consumption of Raw Materials	804.900
(c) Purchase of traded goods	0.100
(d) Employees Cost	353.200
(e) Depreciation	402.500
(f) Power and Fuel	1202.000
(g) Freight Charges	577.400
(h) Other Expenditure	768.100
Total Expenditure	5677.000
3 Profit from Operations before Other Income, Interest & Exceptional Items (1-2)	87.300
4 Other Income	159.000
5 Profit before Interest & Exceptional Items (3+4)	246.300
6 Interest and Financial Charges	615.400
7 Profit after Interest but before Exceptional Items (5-6)	(369.100)
8 Exceptional Items	--
9 Profit from Ordinary Activities before Tax (7-8)	(369.100)
10 Tax Expense (including current and deferred tax)	(178.200)
11 Net Profit from Ordinary Activities after Tax (9-10)	(190.900)
12 Extraordinary Items	--
13 Net Profit from Ordinary Activities after Tax	(190.900)
14 Paid-up Equity Share Capital-Face Value Rs. 2/- each	161.900
15 Reserves excluding Revaluation Reserves	--
16 Earning per Share
Basic before and after Extraordinary Items (Rupees)	(2.36)
Diluted before and after Extraordinary Items (Rupees)	(2.36)
17 Public Share Holding
Number of Shares	3,40,37,526
Percentage of Shareholding	42.05%
18 Promoters and Promoter group Shareholding
(a) Pledged/Encumbered
Number of Shares	Nil
Percentage of Shares (as a percentage of the total shareholding of promoter and promoter group)	Nil
Percentage of Shares (as a percentage of the total share capital of the company)	Nil
(b) Non-encumbered
Number of Shares	4,69,01,777
Percentage of Shares (as a percentage of the total shareholding of promoter and promoter group)	100.00%
Percentage of Shares (as a percentage of the total share capital of the company)	57.95%

Quarterly Reporting on Segment Wise Revenues, Results and Capital Employed under Clause 41 of the Listing Agreement

(Rs. in millions)

Particulars	For the Quarter ended (Unaudited)
	30.06.2010
1 Segment Revenues (net of Excise Duty)
(a) Cement	3392.400
(b) Sugar	1621.200
(c) Power	476.300
(d) Others	294.400
	5784.300
Less: Inter Segment Revenue	124.700
Net Segment Revenue	5659.600
2 Segment Results
(a) Cement	298.100
(b) Sugar	(325.000)
(c) Power	87.100
(d) Others	34.500
	94.700
Less :Other unallocable expenditure net of unallocable income	(151.600)
Less : Interest and Financial Charges	615.400
Total Profit before Tax	(369.100)
3 Segment Capital Employed
(a) Cement	20401.400
(b) Sugar	5692.200
(c) Power	4310.900
(d) Others	4011.900
Total	34416.400

Notes:

1. Figures for corresponding previous year/quarter have been regrouped and rearranged wherever considered necessary.

2. Share of Profit in Associate Company OCL India Limited for the quarter ended 30th June, 10 is Rs.191.800 millions which is not included in the above results.

3. No. of Investors complaints:

(a) At the beginning of the quarter: Nil

(b) Received and Resolved during the quarter: 61

(c) At the end of the quarter: Nil

4. The above results have been taken on record by the Board of Directors in their meeting held on 9th August, 2010 and have been reviewed by the Statutory Auditors of the Company.

5. The Hon'ble High Court of Madras has at the hearing held on July 29, 2010 accorded its approval to the Scheme of Arrangement between the Company, Dalmia Bharat Enterprises Limited, Avnija Properties Limited and DCB Power Ventures Limited under Section 391-394 of the Companies Act, 1956. The said Scheme envisages the demerger of the cement business, thermal power business and certain other businesses w.e.f. April 1, 2010. Effect of the said scheme will be given on receipt of the certified copy of the order of Hon'ble High Court of Madras and filing the same with ROC in terms of section 394(3) of the Companies Act, 1956.

The results of discontinuing operations of the demerging business included in the above results are as follows:

(Rs. in millions)

Particulars	30-Jun-10
Income
Net Sales	3737.800
Other Operating Income	49.300
Other Income	147.200
Total Expenses	3891.300
Profit before tax	43.000
Tax Expenses	(34.100)
Profit after tax	77.100
Segment Capital employed of discontinuing operations:
Cement	20401.400
Power	1767.400
Other	887.700

Contingent liabilities (not provided for) ion respect of:

Particulars	31.03.2010 (Rs. in millions)
a) Claims against the Company no acknowledged as debts	386.690
b) Guarantees/Counter Guarantees given to banks on account of loans given by the banks to Bodies Corporate	14.700
c) Demand raised by Income tax authorities in dispute	111.160
d) Demand raised by custom, excise, entry tax, service tax and sales tax	729.290
e) Other money for which the Company is contingently liable	11.930
f) Uncalled Liability on Partly Paid up Units	--

Based on favourable decisions in similar cases, legal opinion taken by the Company, discussions with the solicitors etc, the Company believes that there is a fair chance of favourable decisions in respect of the items listed above and hence no provision is considered necessary against the same.

FIXED ASSETS:

· Land

· Land (Leasehold)

· Buildings

· Plant and Machinery

· Railway Sidings

· Vehicles

· Furniture and Fixtures

· Other Assets

· Software Licences

WEBSITE DETAILS:

Essence

The year 1939 saw the establishment of one of India’s first cement plants with an installed capacity of 250 tonne cement per day-they as subject had just arrived. The plant today has grown by manifolds in terms of capacity. They as a group too have expanded both in terms of vision as well as business interests ranging from harnessing of the bounty of iron-ore and magnesite in the country, Travel and export activities. These diversifications were an effort to build and contribute to the development of basic industrial materials. The year 1993 saw us foraying into the Sugar business with an installed capacity of 2500 TCD. Today alongwith the Cement business, Sugar business is one of the key growth engines of subject.

Apart from establishing their footprints across various business segments they have also kept up their pace of excellence. In 1993, subject became the first company in South India to obtain ISO 9002 certification and second in the country among the Indian Cement Plants. In 2004, they became an ISO 14001 Certified company. Their efforts in sustaining growth with responsibility have merited us many notable awards for Energy Conservation and Efficiency, Safety, Health and Environment issues from the Government and other reputed agencies.

Today, they stand as one of the most profitable players in the industry, with sustainable high margins and strong financials backing their efforts. Their vision which balanced the changing needs with their corporate imperatives, their organization has grown over the years taking us to new heights and building onto their strengths. Today they stand on a strong foundation of high organizational values and business ethics through which they have cemented their growth.

Their business has year on year moved up the value chain with a consistent record of making profits and paying dividends, making the company financially strong and stable. With a total income of over Rs.21940.000 millions subject has business interests in two major segments, Cement and Sugar. Their objective is to grow further and be among the top manufacturing industries today. In this course, their cement business has grown with an increased production capacity from 1.5 million tonnes [MT] in the past to the current installed capacity of 9 MT. Also their sugar business since its commencement in 1994, has grown to have three Integrated Sugar Mills in the State of Uttar Pradesh with total installed capacity of 22,500 tonnes of cane crush per day leading to sugar manufacturing of about 300,000 MT per annum, distillery capacity of 80 KL per day and cogeneration facility. With the launch and commencement of its two Greenfield projects in the Kadapa district of Andhra Pradesh and Ariyalur in Tamil Nadu with a total 5MN tonnes capacity, subject has expanded its cement footprint in the Southern India. Subject also holds a stake of 45.4 % in OCL India Limited, a major cement Player in the Eastern Region. Dalmia Cement now controls a cement capacity of 14.3 million tonnes and has a strong presence in Southern and Eastern Regions of the Country. This parabolic growth in last few years is a testament of their determination to grow into a leadership position.

Their aim is to sustain the growth that they have witnessed for the past years as well as forge ahead with the ambitious plan they have envisioned for theirselves with the help of professional Management team under the guidance of the experienced promoters of the Group.

Quality of their products and Innovation is what has made us, unique in the Indian Cement Industry. They have given India several vital projects from dams to critical defense installations and created special cements for special applications with newer and innovative technologies. This spirit of innovation has fuelled the development of specialty cements for special needs, – which includes strengthening Airstrips, concretizing Railway Sleepers, cementing Oil Wells, etc. In this journey of success they have always been the benchmark of the latest and best technology with an endurance to achieve noteworthy milestones.

The homegrown talent of its people has fueled the commendable growth of the company. Subject has been and is committed to its people, and considers them to be vital to their success. To this end they focus on creating opportunities for growth and diversity for all their employees. They foster an environment that is supportive of their personal and professional development, so that they may maximise the opportunity to achieve their career goals.

Being a value based organization their approach has been based on their guiding principles of mutual respect, dignity, responsibility, ownership, commitment, honesty, initiative, innovation, collaboration, and faith. This strong foundation is what has been leveraged for attracting the best talents in the industry for decades to be part of the success and growth. Looking ahead, the company expects to create leaders at every level, and evolve the company into a high productivity organization based on its strong ethos. They aspire to create an organization that will continue to lead and strive to meet the expectations of its customers, employees and shareholders for generations to come.

their history

Founded in 1935 by Jaidayal Dalmia; the cement division of subject was established in 1939 and enjoys a heritage of 70 years of expertise and experience. They are headquartered in New Delhi with cement, sugar, travel agency, magnesite, refractory and electronic operations spread across the country.

The Dalmia Group had established four cement plants in pre-independence years, two of which were affected by the partition and Independence. The two remaining plants operate as Dalmia Cement and they have also made strategic investment in Orissa Cements Limited(OCL). Managed by a professional team, they have sustained the path to innovation and growth for seven decades.

Early on in their history they learnt that a strong business is an amalgamation of strong relationships. The key to establishing such relationships is to learn from each other, to enjoy a spirit of camaraderie, and to recognize and identify with their needs of the people they work with. Today with their rich experience they have been able to broaden their horizons to include a holistic approach to the best practices in the industry.

Subject prides itself on having been at the forefront of pioneering and introducing many new technologies, which exist today, which are followed by others in the industry. Subject has been and continues to be an industry leader in the niche market segments.

This timeline highlights some of the significant moments that took place over the years and shows how their business has evolved.

Executive Team

JH Dalmia, Vice Chairman

Mr. J.H. Dalmia, 63, holds a B.E. degree in electrical engineering from Jadavpur University and a Master's degree in electrical engineering from the University of Illinois, Urbana Champagne. He has more than 36 years of experience cutting across various industries which includes wide knowledge and experience of refractory, sugar and cement businesses.

Mr. J.H. Dalmia has vast experience in research and development having personally received several patents for the Company's businesses and has been instrumental in establishing the Company’s research and development efforts more than 20 years ago.

YH Dalmia, Vice Chairman

Mr. Y. H. Dalmia, 60, holds a B.Com (Hon) degree from Delhi University and is a Fellow Member of the Institute of Chartered Accountants of India. He has more than 35 years of experience in the cement industry. Mr. Y.H. Dalmia has served as President of the Cement Manufacturers Association and is a known figure in the cement industry.

Gautam Dalmia, Joint Managing Director

Mr. Gautam Dalmia, 40, holds B.S. and M.S. degrees in electrical engineering from Columbia University. He has 15 years of experience in the cement and sugar industries. He was part of the team that led the diversification of the Company into sugar business in 1994. He was personally responsible for implementing a new strategy to turnaround the sugar business. He has led the effort to design and implement the Company’s integrated sugar, ethanol and cogeneration business. He is directly responsible for managing the sugar business and is leading all operations and execution of cement projects besides providing leadership to the commercial functions for the group.

Puneet Dalmia, Managing Director

Mr. Puneet Dalmia, 35, holds a B.Tech. degree from the Indian Institute of Technology, Delhi and is a gold medalist from the Indian Institute of Management, Bangalore in strategy and marketing. He has eleven years of experience in the industry having started his career as the co-founder and Chairman of one of the most profitable e-recruitment websites in India, JobsAhead.com, which was later acquired by Monster.com, a Nasdaq listed multinational company. Mr. Puneet Dalmia conceptualized the growth strategy and governance architecture for the Company to focus on its core businesses and is spearheading the growth plans for the group.

Mr. T. Venkatesan

Mr. T. Venkatesan, 55 years, Whole-time Director, is a B.A. (Economics) and a fellow member of the Institute of Chartered Accountants of India. He brings with him a rich experience of over 28 years having commenced his career with Thiru Arooran Sugars Limited in the finance and accounts department. He has worked with reputed companies such as Eicher Tractors Limited, Triveni Engineering Limited and the Aditya Birla group. In his previous assignment with the Sterlite Group, he was instrumental in spearheading the expansion from 180 KTPA to 400 KTPA, as CEO for Sterlite Industries' copper business. In addition he was also holding additional charge as CEO and director on the Board of Vedanta Alumina Limited and has successfully implemented a Rs.50000.000 millions project in the State of Orissa. His expertise lies in accelerating growth and building organisational capability to ensure delivery of business goals. In his present capacity he is responsible for operations and future growth of cement segment.

PRESS RELEASES:

Dalmia Cement (Bharat) Limited changes name to Dalmia Bharat Sugar and Industries Limited

Announces Record Date for issue of shares of Dalmia Bharat Enterprises Limited in terms of Demerger Scheme

September 21, 2010

Scheme of Demerger

The Scheme of Demerger  approved by Shareholders of Dalmia Cement (Bharat) Limited on June 2nd 2010, to undertake split of the businesses in two entities, one the existing entity to house integrated Sugar Business and the new entity Dalmia Bharat Enterprise Limited (DBEL) to house Cement and other businesses, has been approved by Madras High Court on 29th July, 2010. Pursuant to the court order the Scheme has been filed with the Stock Exchanges and Registrar of the Companies on 1st September’ 2010

Name Change

To reflect the post restructuring businesses, the name Dalmia Cement (Bharat) Limited has been changed to Dalmia Bharat Sugar and Industries Limited w.e.f. 7th September’2010 as intimated by Registrar of Companies and the particulars of the name change are being forwarded to Stock Exchanges for the change of the existing name to the new name, the change in name of the existing listed entity to Dalmia Bharat Sugar and Industries Limited is expected to be done by stock exchanges shortly.

It may be noted that post this change of name, the company will continue to trade as present as a combined cement and sugar company.

Record Date

In terms of the Scheme, the shareholders of the Dalmia Cement (Bharat) Limited (renamed to Dalmia Bharat Sugar and Industries Limited) are entitled to shares of the new entity Dalmia Bharat Enterprise Limited in the ratio 1:1. The existing company has informed to stock exchanges for fixing the record date as September 27th, 2010 for determining the entitlement of the shareholders. Post the record date the shareholders as at the close of the record date would be allotted shares of DBEL forthwith. For clarification, post record date the market price of equity shares of Dalmia Cement (Bharat) Limited (renamed to Dalmia Bharat Sugar and Industries Limited) will trade at the price pertaining to valuations of Sugar Business which remains housed in it.

Listing of Dalmia Bharat Enterprise Limited

Pursuant to allotment of shares in Dalmia Bharat Enterprise Limited the shares of the new entity viz. DBEL would apply for listing of its shares and is hopeful of completing the required processes and list the shares of DBEL by the 1st week of November. Shares of Dalmia Cement (Bharat) Limited (renamed as Dalmia Bharat Sugar and Industries Limited) with integrated sugar business as its core activity would continue to be listed and traded post the record date.

It is further clarified that till the record date, the current integrated company “Dalmia Cement (Bharat) Limited” will trade in the changed name of “Dalmia Bharat Sugar and Industries Limited”.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.48
UK Pound	1	Rs.72.36
Euro	1	Rs.64.42

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	10
--PROFITABILIRY	1~10	8
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--MARGINS	-5~5	-
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		81

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.