1. Summary Information

		Country	India
Company Name	Grasim Industries Limited	Principal Name 1	Mr. Kumar Mangalam Birla
Status	Very Good	Principal Name 2	Mrs. Rajashree Birla
		Registration #	10-000410
Street Address	P. O. Birlagram, Nagda, Ujjain – 456 331, Madhya Pradesh, India
Established Date	25.08.1947	SIC Code	--
Telephone#	91-7366-246760/ 62/ 64/ 66	Business Style 1	Manufacturer
Fax #	91-7366-244114/ 246024	Business Style 2	--
Homepage	http://www.grasim.com http://www.adityabirla.com	Product Name 1	Staple Fibre
# of employees	53570	Product Name 2	Grey Portland Cement
Paid up capital	Rs. 917,035,000/-	Product Name 3	Sponge Iron
Shareholders	Promoter and Promoter Group - 28.62% Public shareholding - 71.38%	Banking	State Bank of India
Public Limited Corp.	Yes	Business Period	63 Years
IPO	Yes	International Ins.	-
Public Enterprise	Yes	Rating	Aa (75)
Related Company
Relation	Country	Company Name	CEO
Subsidiaries:	--	Sun God Trading And Investment Limited	--
Note	-

2. Summary Financial Statement

Balance Sheet as of	31.03.2010		(Unit: Indian Rs.)
Assets		Liabilities
Current Assets	7,470,000,000	Current Liabilities	8,829,200,000
Inventories	4,172,400,000	Long-term Liabilities	10,376,200,000
Fixed Assets	17,860,600,000	Other Liabilities	2,521,600,000
Deferred Assets	0	Total Liabilities	21,727,000,000
Invest& other Assets	63,677,700,000	Retained Earnings	70,441,600,000
		Net Worth	71,453,700,000
Total Assets	93,180,700,000	Total Liab. & Equity	93,180,700,000
Total Assets (Previous Year)	160,147,100,000
P/L Statement as of	31.03.2010		(Unit: Indian Rs.)
Sales	81,721,100,000	Net Profit	25,007,800,000
Sales(Previous yr)	108,287,100,000	Net Profit(Prev.yr)	22,478,400,000

MIRA INFORM REPORT

Report Date :

18.02.2011

IDENTIFICATION DETAILS

Name :	GRASIM INDUSTRIES LIMITED
Formerly Known As :	GWALIOR RAYON SILK (WEAVING) COMPANY LIMITED
Registered Office :	P. O. Birlagram, Nagda, ujjain – 456331, Madhya Pradesh
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	25.08.1947
Com. Reg. No.:	10-000410
CIN No.: [Company Identification No.]	L17124MP1947PLC000410
TAN No.: [Tax Deduction & Collection Account No.]	BPLG00117F
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	Manufacturer of Inorganic Industrial Chemicals.

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

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 290000000
Status :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a Birla Group Company. It is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Directors are reported to be experienced and respectable businessmen. Payments are reported to be regular and as per commitments. The company can be considered normal for 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. Birlagram, Nagda, Ujjain – 456 331, Madhya Pradesh, India
Tel. No.:	91-7366-246760/ 62/ 64/ 66
Fax No.:	91-7366-244114/ 246024
E-Mail :	grsmsfd@vsnl.com shares@grasim.com sfdiv.grasimbm@gems.vsnl.net.in info@grasim.com anil.ladha@adityabirla.com shares@adityabirla.com
Website :	http://www.grasim.com http://www.adityabirla.com
Corporate Office :	91, Sakhar Bhavan, 230, Nariman Point, Mumbai – 400021, Maharashtra
Tel. No.:	91-22-22819520
Fax No.:	91-22-22284629
Administrative Office:	Staple Fiber Division, Century Bhawan, 3^rd Floor, Dr. A B Road, Worli, Mumbai – 400030, Maharashtra, India
Tel. No.:	91-22-24210182-86/ 22025012/ 24210182/ 24303169/ 22043451/ 65991600
Fax No.:	91-22-24220892
Factory :	FIBRE, PULP and CHEMICAL PLANTS Staple Fibre Division Birlagram, Nagda – 456 331, Madhya Pradesh Tel. No. 91-7366-246760-246766 Fax No. 91-7366-244114/246024 Harihar Polyfibres and Grasilene Division Harihar, District Haveri, Kumarapatnam – 581 123, Karnataka Tel. No. 91-8373-232637-39 Fax No. 91-8373-232465/ 232875 91-8192-247555 Birla Cellulosic Birladham, Kharach, Kosamba 394 120, District Bharuch, Gujarat Tel. No. 91-2629-270001/5 Fax No. 91-2629-270010/270310 Chemical Division Birlagram 456 331 Nagda, Madhya Pradesh Tel No. : 91-7366 245501 – 03 Fax No. : 91-7366 246767 / 245845 Pulp and Fibre Divisions Birlakootam, Kozhikode, Mavoor – 673 661, Kerala Tel. No. 91-495-2483161-3 Fax No. 91-495-2483116 CEMENT PLANTS Vikram Cement District Neemuch, Khor – 458 470, Madhya Pradesh Tel. No. 91-7420-230514/ 230614/ 230830/ 235557 Fax No. 91-7420-235524 Aditya Cement Adityapuram Sawa – Shambhupura, District Chittorgarh, Rajasthan – 312 613 Tel. No. 91-1472-22201972/ 97 Fax No. 91-1472-2220289 Grasim Cement Grasim Vihar, Village P. O. Rawan, Tehsil Sigma, District Raipur, Madhya Pradesh Tel. No. 91-7726-288217/20 Fax No. 91-7726-288215/288209 Rajashree Cement Aditya Nagar, Malkhed Road, Gulbarga – 582 292, Karnataka Tel. No. 91-8441-2687221-24/ 288888 Fax No. 91-8441-2687225/ 288624/ 288365 Grasim Cement Division – South Reddipalayam P.O. : Ariyalur, District Perambalur – 621 704, Tamilnadu Tel. No. 91-4329-249240 Fax No. 91-4329-249253 Birla White Rajashree Nagar, Bhopalgarh, District Jodhpur, Kharia Khangar – 342 606, Rajasthan Tel. No. 91-2920-26040/ 47/ 89 Fax No. 91-2920-264225/ 264244/ 264222 Grasim Cement – Kotputli V & P.O. Mohanpura, Tehsil: Kotputli, Dist. Jaipur, Rajasthan – 303108, India Tel No.: 91-1421-215719 Fax No.: 91-1421-288665 Other Plants Bhiwani Textile Mills/ Elegant Spinners Birla Colony, Bhiwani – 125 021, Haryana Tel. No. 91-1664-242577 / 243126 Fax No. 91-1664-243717 / 242575 Sponge Iron Division Vikram Ispat, Salav, District Raigad – 402 202, Maharashtra Tel. No. 91-2141-260110/ 260119 Fax No. 91-2141-260104/ 260122 Vikram Woolens GH I to IV, Ghironghi, Malanpur, District Bhind – 477 117, Madhya Pradesh Tel. No. 91-7539-283602/ 283606 Fax No. 91-7539-283339/ 91-1664-242575/ 243717

DIRECTORS

AS ON 31.03.2010

Name :	Mr. Kumar Mangalam Birla
Designation :	Chairman
Name :	Mrs. Rajashree Birla
Designation :	Director
Name :	Mr. M. L. Apte
Designation :	Director
Name :	Mr. B. V. Bhargava
Designation :	Director
Name :	Mr. R. C. Bhargava
Designation :	Director
Name :	Mr. Cyril Shroff
Designation :	Director
Name :	Mr. S. G. Subrahmanyan
Designation :	Director
Name :	Mr. D. D. Rathi
Designation :	Whole Time Director and CFO
Name :	Mr. Shailendra K. Jain
Designation :	Whole Time Director
Name :	Mr. A.K. Dasgupta
Designation :	Additional Director
Name :	Mr. Mr. Adesh Gupta
Designation :	Whole Time Director
Name :	Mr. K K Maheshwari
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Ashok Malu
Designation :	Company Secretary
Name :	Mr. D. D. Rathi (upto 19^th May 2009)
Designation :	Chief Financial Officer
Name :	Mr. Adesh Gupta
Designation :	Chief Financial Officer
Management
Staple Fibre and Pulp Divisions:-
Mr. Shailendra K. Jain	Business Director
Mr. S. S. Maru	Senior Executive President, Pulp and Grasilene Divisions, Harihar
Mr. Thomas Varghese	Executive President (Marketing)
Mr. Vijay Kaul	Senior Executive President, Birla Cellulosic Division, Kharach
Mr. S. V. Kulkarni	Executive President, Birla Cellulosic Division, Kharach
Mr. S K Saboo	Advisor, Chairman’s Office
Mr. S. Srinivasan	Senior Executive President, Pulp and Fibre Business
Cement Divisions:-
Mr. Saurabh Misra	Business Head
Mr. O. P. Puranmalka	Group Executive President and Chief Marketing Officer
Mr. S. K. Maheshwari	Senior Executive President and Chief Manufacturing Officer
Mr. L. N. Rawat	Senior Executive President – Rajshree Cement
Mr. R. M. Gupta	Senior Executive President, Grasim Cement
Mr. D. R. Dhariwal	President, Birla White Cement
Mr. H. N. Singh	Executive President
Mr. D. P. Somani	Executive President, Vikram Cement and Aditya Cement
Mr. Anil Kumar Pillai	Executive President and Unit Head, Rajshree Cement
Mr. S Natarajan	Joint Executive President and Unit Head Grasim Cement (South)
Mr. M M Tiwari	Joint Executive President and Unit Head Grasim Cement (Rawan)
Mr. Sanjay Agrawal	Joint Executive President and Unit Head Grasim Cement (Kotputli and Panipat)
Mr. Jagat Singh Rathee	Joint Executive President and Unit Head Aditya Cement
Mr. B B Joshi	Executive President and Unit Head, Aditya Cement
Mr. Ratan K. Shah	Business Head – (Manufacturing and Projects)
Chemical Division:-
Mr. G. K. Tulsian	Executive President
Mr. K. C. Jhanwar	Senior Executive President
Corporate Finance Division
Mr. S. N. Jajoo	Senior Executive President (On deputation to Vikram Sponge Iron Limited)
Mr. Sanjeev Bafha	President and Dy. Chief Financial Officer
Mr. Pavan K. Jain	Executive President

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.12.2010

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	133,372	0.16
Bodies Corporate	23,252,547	28.46
Sub Total	23,385,919	28.62
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	23,385,919	28.62
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	7,177,390	8.79
Financial Institutions / Banks	73,873	0.09
Insurance Companies	10,704,124	13.10
Foreign Institutional Investors	21,646,724	26.50
Sub Total	39,602,111	48.47
(2) Non-Institutions
Bodies Corporate	4,790,147	5.86
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 million	9,556,353	11.70
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	1,000,210	1.22
Any Others (Specify)	3,363,467	4.12
Overseas Corporate Bodies	2,622,613	3.21
Non Resident Indians	740,854	0.91
Sub Total	18,710,177	22.90
Total Public shareholding (B)	58,312,288	71.38
Total (A)+(B)	81,698,207	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	4,802,304	-
(2) Public	5,196,178	-
Sub Total	9,998,482	-
Total (A)+(B)+(C)	91,696,689	-

BUSINESS DETAILS

Line of Business :

Manufacturer of a Inorganic Industrial Chemicals.

Products :

Item Code No.	Product Description
550410-00	Staple Fibre
252329-01	Grey Portland Cement
720310-00	Sponge Iron

PRODUCTION STATUS - As on 31.03.2010

Particulars	Unit	Installed Capacity	Actual Production
1. Viscose Staple Fibre/Polynosic HWM/Hi-Performance/Speciality Fibre	Tonnes	333975	302092
2. Sulphuric Acid (Captive and Intermediate Product)	Tonnes	277045	241457
3. Carbon-di-Sulphide (Captive and Intermediate Products)	Tonnes	57785	56220
4. Rayon Grade Pulp (At Mavoor and Harihar)	Tonnes	70000	73099
5. Rayon Grade Caustic Soda	Tonnes	258000	229801
6. Stable Beaching Powder	Tonnes	29436	26725
7. Man-Made Fibre Fabrics	Mtr. (in 000’s)	8832 Spindles	2091
8. Cement	Tonnes	22550000	9537397
9. Ready Mix Concrete	Cu. Meter	5356361	1081034
10. White Cement	Tonnes	560000	237875
11. Putty	Tonnes	260000	99244
12. Industrial Machinery	Tonnes	15950	##
13. Poly Aluminium Chloride	Tonnes	36000	37229
14. Chloro Sulphonic Acid	Tonnes	23400	17581
15. Sponge Iron	Tonnes	900000	77069

Notes:

a) Licensed capacity not indicated due to abolition of industrial licences under The Industries (Development and Regulation) Act, 1951

b) The Installed Capacities are certified by the Management and accepted by the Auditors as correct, being a technical matter.

c) # Includes third party processing.

d) ## Quantitative data can not be given as production represents fabrication, machining, etc. against individual orders for made to order machines/equipment.

e) @ Pursuant to scheme of demerger of Cement business of the Company, the related installed capacity is transferred to Samruddhi Cement Limited but has been disclosed above.

f) *Related installed capacity is transferred pursuant to scheme of sale of Sponge Iron unit but has been disclosed above.

GENERAL INFORMATION

Suppliers:

v G K Electrical Services

v Harihar Industries

v Steive Engineering

v Unity Enterprises

v G K Enterprises

v HY-TTUF Steels Private Limited

No. of Employees :

53570

Bankers :

v State Bank of India, Bahrain

v EXIM Bank, USA

v Hongkong Bank, London

v IDBI

v ICICI

v Mashreq Bank, Dubai

v Standard Chartered Grindlays Bank, Dubai

v British Bank of Middle East, Dubai

Facilities :

Secured Loans	31.03.2010 Rs. in Millions
Non-Convertible Debentures	--
Loans and advances from Banks:
-Working Capital Borrowings from Banks	1982.400
Documentary Demand Bills/Usance Bills under Letter of Credit Discounted	213.000
-Rupee Term Loans	3983.700
- External Commercial Borrowings	1470.300
-Buyer’s Credit	--
	7649.400
Total

Notes:

1. a) Rupee Term Loans from Banks are secured by exclusive charge on certain fixed assets of:
Fibre Divisions at Nagda, Harihar and Kharach	74.800
Fibre/Pulp Divisions at Nagda and Harihar	965.200
b) Rupee Term Loan from Bank is secured by first pari passu charge on the fixed assets, both present and future, of the divisions as mentioned in Note 5(a) below [as also on the fixed assets, both present and future, of the divisions as mentioned in Note 5(b) below, in the previous year] .	2943.700
	3983.700
2. (a) External Commercial Borrowings are secured by first pari passu charge on the fixed assets, both present and future, of the divisions as mentioned in Note 5(a) below [as also on the fixed assets, both present and future, of the divisions as mentioned in Note 5(b) below, in the previous year]. (b) External Commercial Borrowings were secured by first pari passu charge on the fixed assets, both present and future, of the divisions as mentioned in Notes 5(a) and 5(b) below. #	1470.300 --
	1470.300
3. Buyer’s Credit from Bank was secured by exclusive charge on certain specific fixed assets of Grasim Cement Division at Kotputli.#	--
4. a) Staple Fibre, Chemical and Engineering and Development Divisions at Nagda, Grasilene and Harihar Polyfibers Divisions at Harihar and Birla Cellulosic Division at Kharach [excluding certain specific fixed assets of Fibre/Pulp Divisions at Nagda, Harihar and Kharach which are exclusively charged for the loans mentioned in Note 2(a) above]. (b) Grasim Cement Division at Raipur, Cement Division-South at Reddipalayam, Aditya Cement Division at Shambhupura, Vikram Cement Division at Jawad, Rajashree Cement Division at Malkhed, White Cement Division at Kharia Khangar, Grasim Cement Division (formerly, Birla Super Cement Division) at Hotgi, Grasim Cement Division (formerly, Birla Plus Cement Division) at Bathinda and Birla Super Bulk Terminal Division at Doddaballapur.
5. Working Capital Borrowings from Banks are secured by hypothecation of stocks and book debts of the Company. # Transferred to Samruddhi Cement Limited, pursuant to scheme of demerger of Cement Business of the Company.

Unsecured Loans:	31.03.2010 Rs. in Millions
Short Term Loans and Advance
From Banks:
-Buyer’s Import Credit	--
-Export Packing Credit	228.600
-Against Documentry Usance Bills Discounted	--
Other Loans and Advances:
-From Banks:
-Foreign Currency Loans	1476.700
-From Others:
-Deferred Sales Tax Loan	1021.500
Total	2726.800

Banking Relations :	--
Auditors :
Statutory Auditors
Name :	G P Kapadia and Company Chartered Accountants
Address :	Mumbai
Name:	Deloitte Haskins and Sells Chartered Accountant
Address:	Mumbai
Branch Auditors
Name:	Vidyarthi and Sons Chartered Accountant
Address:	Gwalior
Solicitors:	· Mulla and Mulla and Craigie, Blunt and Care · Amarchan and Mangaldas and Suresh A Shroff and Company
Membership:	v Confederation of Indian Industry
Associates:	v Aditya Birla Science and Technology Company Limited, became associate w.e.f. 28th March, 2006 v Idea Cellular Limited
Subsidiaries	Sun God Trading And Investment Limited Samruddhi Swastik Trading And Investment Limited Samruddhi Cement Limited (w.e.f. 4th September, 2009) UltraTech Cement Limited Dakshin Cement Limited UltraTech Cement Lanka Private Limited (previously known as UltraTech Ceylinco (Private) Limited) UltraTech Cement Middle East Investment Limited (w.e.f. 3rd March, 2010) Harish Cement Limited Grasim Bhiwani Textiles Limited Vikram Sponge Iron Limited (upto 21st May’09)
Joint Venture :	AV Cell Inc., Canada A V Nackawic Inc., Canada, Birla Jingwei Fibres Company Limited Birla Lao Pulp and Plantations Company Limited Bhaskarpara Coal Company Limited Madanpur (North) Coal Company Private Limited

CAPITAL STRUCTURE

As on 31.03.2010

Authorized Capital:

No. of Shares	Type	Value	Amount
95000000	Equity Shares	Rs.10/- each	Rs.950.000 Millions
	Redeemable Cumulative Preference Shares	Rs.100/- each
150000	15% “A” Series		Rs.15.000 Millions
100000	8.57% “B” Series		Rs.10.000 Millions
300000	9.30% “C” Series		Rs.30.000 Millions
	TOTAL		Rs.1005.000 millions

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
91683571	Equity Shares of Rs.10 each fully paid (Previous Year 91,674,534 Equity Shares) Of the above, 29,532,500 Equity Shares were issued as fully paid up Bonus Shares by way of Capitalisation of Share Premium and Reserve, 19,360,609 (Previous Year 19,360,564) Equity Shares of Rs.10 each were issued as fully paid up for acquiring the cement business of Aditya Birla Nuvo Limited pursuant to Scheme of Arrangement without payment being received in cash, 9,901,495 (Previous Year 9,825,787) Equity Shares represented by Global Depository Receipts.	Rs.10/- each	Rs.916.835 Millions
	Share Capital Suspense:
14906	Equity Shares (Previous Year 14,951) of Rs.10 each to be issued as fully paid up pursuant to acquiring of cement business of Aditya Birla Nuvo Limited under Scheme of Arrangement without payment being received in cash. Total Issued, Subscribed and Paid up Share Capital including Share Capital Suspense	Rs.10/- each	Rs.0.200 Million
	Total		Rs.917.035 Millions

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		917.000	916.900	916.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		70441.600	93754.400	80441.200
4] Employee Stock Option Outstanding		95.100	104.500	49.000
5] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		71453.700	94775.800	81407.100
LOAN FUNDS
1] Secured Loans		7649.400	22050.000	23504.000
2] Unsecured Loans		2726.800	11899.500	8514.700
TOTAL BORROWING		10376.200	33949.500	32018.700
DEFERRED TAX LIABILITIES		2521.600	8643.700	6068.700
TOTAL		84351.500	137369.000	119494.500
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		17860.600	70882.800	40235.100
Capital work-in-progress		429.800	12186.400	30263.100
INVESTMENT		63247.900	46091.000	40807.900
FIXED ASSETS HELD FOR DISPOSAL		0.000	8.500	41.400
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4172.400	13782.400	9784.400
	Sundry Debtors	3450.100	5599.300	7119.800
	Cash & Bank Balances	159.200	1133.800	1274.700
	Loans & Advances	3851.200	10458.100	11404.900
	Interest accrued on Investment	9.500	4.800	7.000
Total Current Assets		11642.400	30978.400	29590.800
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2014.400	10106.400	11865.500
	Other Current Liabilities	6229.300	6762.900	4176.200
	Provisions	585.500	5908.800	5402.100
Total Current Liabilities		8829.200	22778.100	21443.800
Net Current Assets		2813.200	8200.300	8147.000
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		84351.500	137369.000	119494.500

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	81721.100	108287.100	102150.500
		Other Income	3757.600	3504.500	3778.400
		TOTAL (A)	85478.700	111791.600	105928.900
Less	EXPENSES
		Raw Materials Consumed	21680.700	30850.800	28282.500
		Manufacturing Expenses	17002.600	27316.900	22024.700
		Purchases of Finished and Trade Goods	309.100	659.400	974.000
		Payment to and Provisions for Employees	4809.300	6003.900	5500.700
		Selling, Distribution, Administration and Other Expenses	11950.800	19285.500	16967.900
		Captive Consumption	(106.700)	(434.300)	(763.600)
		Write back of provision for diminution	0.000	0.000	(456.800)
		Increase of decrease of Stock	109.800	(335.400)	(1302.200)
		TOTAL (B)	55755.600	83346.800	71227.200
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		29723.100	28444.800	34701.700
Less	FINANCIAL EXPENSES (D)		1203.900	1396.700	1070.000
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		28519.200	27048.100	33631.700
Less/ Add	DEPRECIATION/ AMORTISATION (F)		3511.400	4569.700	3532.700
	PROFIT BEFORE TAX (E-F) (G)		25007.800	22478.400	30099.000
Less	TAX (I)		4086.800	5998.800	7773.000
	PROFIT AFTER TAX (G-I) (J)		20921.000	16479.600	22326.000
	DEBENTURE REDEMPTION RESERVE NO LONGER REQUIRED		50.000	0.000	829.200
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		21809.700	10644.100	9653.300
Less	APPROPRIATIONS
		Transfer to General Reserve	17500.000	2000.000	19000.000
		Corporate Dividend Tax	339.500	413.800	414.200
		Proposed Dividend	2750.500	2750.200	2750.200
		Transfer to Debenture Redemption Reserve	0.000	150.000	0.000
	BALANCE CARRIED TO THE B/S		22190.700	21809.700	10644.100
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	7282.600	5003.000	3778.100
		Other Earnings	0.300	0.500	0.900
	TOTAL EARNINGS		7282.900	5003.500	3779.000
	IMPORTS
		Raw Materials	7765.200	9953.400	5638.600
		Stores & Spares	1320.600	3023.200	2723.400
		Capital Goods	2774.500	2326.300	5588.200
	TOTAL IMPORTS		11860.300	15302.900	13950.200
	Earnings Per Share (Rs.)		191.51	179.73	--

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	9644.700	9625.100	12573.200
Total Expenditure	6437.400	6688.600	8502.200
PBIDT (Excl OI)	3207.300	2936.500	4071.000
Other Income	397.800	1323.900	405.300
Operating Profit	3605.100	4260.400	4476.300
Interest	102.300	102.800	117.400
PBDT	3502.800	4157.600	4358.900
Depreciation	444.700	453.100	442.400
Profit Before Tax	3058.100	3704.500	3916.500
Tax	819.800	908.300	1089.300
Profit After Tax	2238.300	2796.200	2827.200
Net Profit	2238.300	2796.200	2827.200

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	24.47	14.77	21.08
Net Profit Margin (PBT/Sales)	(%)	30.60	2.29	29.47
Return on Total Assets (PBT/Total Assets}	(%)	84.76	22.07	43.11
Return on Investment (ROI) (PBT/Networth)		0.35	0.24	0.37
Debt Equity Ratio (Total Liability/Networth)		0.27	0.60	0.66
Current Ratio (Current Asset/Current Liability)		1.32	1.36	1.38

LOCAL AGENCY FURTHER INFORMATION

HISTORY

An arm of Aditya Birla Group is aggressively known as the Grasim Industries Limited. It was incorporated in 25th August 1947, exactly 10 days after India's independence and it was started as textile manufacturer in the year 1948. The company ranks among India's largest private sector companies. The Grasim's businesses comprise Viscose Staple Fibre (VSF), Cement (grey and white), Sponge Iron, Chemicals and Textiles. VSF and Cement are core business of the company. 

The company started its fabrics Production at Gwalior with imported man-made rayon in the year 1950. The VSF production of the company was commenced at Nagda (Madhya Pradesh) in 1954, now the company is world leader in VSF. Grasim manufactures VSF at its units located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in Karnataka, with a combined installed capacity of 270,100 tpa. In 1962, incepted Engineering Division for plant and machinery for VSF. During the year 1963 the company composite the textile mill at Bhiwani (Haryana). The Rayon production was commenced in the year 1968 at Mavoor, Kerala. Nagda commenced the country's second largest rayon grade caustic soda unit in 1972 and started production of caustic soda for an important raw material in VSF production, also the VSF and Pulp plant at Harihar (Karnataka) based on in-house engineering and know-how. In the year 1977, the company's third rayon plant was goes into production at Harihar, Karnataka. During 1985, Grasim's first cement plant goes on stream at Jawad (Madhya Pradesh), which was named under Vikram Cement and subsequently in the year 1987, the Vikram Cement's second production line was bespoke and also added its third production line in 1991, since then it has grown to become a cement major. The company's cement operations today span the length and breadth India, with 11 composite plants, 7 split grinding units, 4 bulk terminals and 20 ready-mix concrete plants and all units are ISO 9001 for Quality Systems and ISO 14001 for Environment Management Systems. 

Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter during the period of 1992 and in the same year the company issued Global Depositary Receipt (GDR) for US$ 90 million. The company ventured into Sponge iron segment, the Vikram Ispat, India's third largest gas-based sponge iron plant was commissioned at Salav in Alibag, Maharashtra in the year 1993 and Birla Consultancy and Software Services was sets up in the year, to provide IT consulting services and for software development. In 1994, the company made second issue of GDRs for US $100 million. During the period of 1995, the Grasim established its two Greenfield Cement plants namely Grasim Cement at Rawan (Chattisgarh) and Aditya Cement at Shambhupura (Rajasthan), the Vikram Woollens Spinning unit at Malanpur (Madhya Pradesh) was sets up in the equivalent year. The first phase of the company's fourth VSF plant was made to order in 1996 at Kharach (Gujarat). During the year 1998, Grasim acquired the Atholville Pulp Mill, the Canada Company; it was the first acquisition in overseas. In the same year, the company acquired Dharani Cements Limited and Shree Digvijay Cements Limited Grasim acquired the cement business of Group Company, Indian Rayon and Industries Limited (IRIL) was transferred to Grasim in a corporate restructuring exercise. The viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material in the year 1999. 

The Lawson Competency Centre was activated as a division of Birla Consultancy and Software Services, the software arm of Grasim in the year 2000, followed a tie up with Lawson Software (USA), among Fortune's top five private software companies. Under the cement business, the four Ready-Mix Concrete plants commissioned in the year 2001 with an aggregate capacity of 1 million cubic meters. The company's consultancy and software services spun off; becomes separate entity, Birla Technologies Limited in 2001 and Grasim divests its holding in Birla Technologies to PSI Data Systems. VSF Research and Application Centre was established in the year 2002 at Kharach in Gujarat. The company divests its Gwalior textiles unit in the year 2002 and the Textile operations were consolidated at Bhiwani to manufacture Grasim and Graviera brands. 

During the year 2003 Grasim's Chemical Division received the SA 8000 (Social Accountability) and OHSAS 18001 certifications and in 2004, for the recognition of its social accountability initiatives the Staple Fibre Division and Engineering and Development Division of Grasim, Nagda received SA 8000:2001 certification from SAI. During the year 2004, the company completed the implementation process to de-merge the cement business of L and T and made open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech. The company acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc in the year 2005 along with Thai Rayon and PT Indo Bharat Rayon. Grasim bagged Environmental and Ecological Gold Award by Greenland Society and Golden Peacock Eco-Innovation Award by IOD in the year 2005. In the year 2006, Grasim Industries Limited, India; Thai Rayon Public Company Limited, Thailand and P.T. Indo Bharat Rayon, Indonesia formed a JV with Hubei Jing Wei Chemical Fibre Company, China, for VSF and also the chlor alkali and chlorine derivatives businesses of Grasim, Aditya Birla Nuvo and Bihar Caustic become a single SBU. Received the Greentech Environmental Excellence Award by Greentech Foundation in 2006. The company awarded the IMC Ramakrishna Bajaj National Quality Special Award for performance excellence 2007 in the manufacturing category.

Some facts on the company embrace, Grasim in Aditya Birla Group is the world's largest producer of VSF, the 11th largest cement producer in the world and the seventh largest in Asia, Largest merchant producer of sponge iron, Second largest producer of caustic soda in India and the Grasim and Graviera range of fabrics signify the 'power of fashion'.

The Company has posted an impressive performance during the year. Its turnover increased by 21% at Rs.115520.000 Millions. Net Profit (before extraordinary items) rose appreciably by 33% at Rs.20480.000 Millions Cement and VSF businesses continued to be the growth drivers.

The performance of the VSF business has been encouraging. Sales volumes recorded an increase of 8% at 269,781 tons. Despite the steep rise in input costs, Operating margins were higher due to realisations being up by 21% at Rs.103316 per ton. 

The Cement business recorded a good performance. Both Production and Sales volumes grew by 7% at 15.36 Mn. tons and 15.54 Mn. tons respectively. The share of blended cement increased from 62% to 68%. Higher volumes and economies of scale contributed to profitability. However, the sharp hike in fuel cost led to lower operating margins. The Company continued its efforts to achieve over 100 percent capacity utilisation to meet the growing demand. RMC (Ready Mix Concrete) volumes expanded by 36%, buoyed by the rapid expansion in RMC network. The White Cement performance too has been good. Production was higher by 12% at 407,882 tons, while Sales volumes extended by 8% at 396,295 tons. 

The Sponge Iron business posted improved performance. Production at 562,000 tons reflected an increase of 7%. Sales volumes, however, were lower by 2% at 557,187 tons. Realisations expanded by 24% owing to a surge in global scrap prices. The gains on this account were offset by higher prices of iron ore, naptha and propane. The non-availability of adequate quantity of natural gas and its pricing continued to remain an area of concern.

The Chemical business put up a moderate performance. Production of caustic soda, which was affected in the corresponding year due to the breakdown of a captive power plant, grew by 38% at 188,537 tons. Sales volumes too moved in tandem, growing by 36% at 187,356 tons. But for the cost pressure on key inputs and fall in realisation, its performance would have been better. 

MANAGEMENT DISCUSSION AND ANALYSIS 

OVERVIEW:

The Financial Year 2009-10 began on a subdued note with the continued impact of the global economic crisis. The timely policy response from the Indian Government and the resilience of the Indian economy led to a sharp ‘V’ shaped recovery, in spite of the uncertainty over sub normal monsoon. The resurgence has been broad-based with both Services and Manufacturing sector growing at high rates. All leading indicators including IIP growth, credit growth, continuous surge in imports and exports since November 2009 and the growth in all industry groups point towards a sustainable recovery. Though inflation and currency appreciation may pose challenges in the short term, RBI’s timely monetary initiatives, including the calibrated exit from the accommodative stance, will ensure that India’s growth remains unhindered. The year has proved that though the Indian economy is interlinked with the global economy, its focus on domestic markets and the Government’s prudent policies will help maintain a high growth trajectory.

The Company’s businesses benefited from strong demand recovery and decline in input costs due to lower commodity prices globally during the year.

STRATEGIC INITIATIVES

FY 2010 has been a watershed year for The Company as they reinforce our focus on our core businesses, Cement and VSF, and brace ourselves for growth opportunities in these businesses.

1. Sale of Sponge Iron Business

The Company divested its Sponge Iron business at a sale consideration of Rs.1,0300.000 Millions, resulting in a net gain of Rs.3360.000 Millions. The transaction was completed on 22nd May, 2009.

2. Completion of cement expansion plan

The Company completed its ongoing cement expansions. The 3.1 million TPA grinding capacity at Kotputli, Rajasthan became operational in Q4FY10. Grinding capacities of 1.6 million TPA at Shambhupura (Rajasthan), 1.3 million TPA at Aligarh (U.P.), both in Grasim and 1.2 million TPA at Tadpatri (A.P.) in UltraTech Cement Limited (UltraTech) were also commissioned during the year. The consolidated cement capacity of The Company stands increased from 41.6 million TPA at the start of the year to 48.8 million TPA at the end of this phase of expansion.

3. Demerger of the Cement Business

Before embarking on the next round of expansion, The Company has restructured its cement business creating a pure play Cement Company, while ensuring alignment of interests of all stakeholders. Restructuring has created a strong financial platform for pursuing aggressive growth. The cement business has been demerged into Samruddhi Cement Limited. (Samruddhi), a subsidiary of The Company w.e.f. 1^st October, 2009. It will hold all the cement assets of Grasim including the grey cement business, RMC and white cement assets. Equity shares of Rs.5/- credited as fully paid up will be allotted in Samruddhi to Grasim’s shareholders in the ratio of 1:1. Samruddhi will be listed on the stock exchanges. Grasim will continue to hold majority stake in and provide support to the rapidly growing cement business. The Hon’ble High Courts of Madhya Pradesh and Gujarat have approved the Scheme. The demerger has become effective from 18^th May, 2010.

Concurrently, the Board of Directors of Ultra Tech Cement Limited, a subsidiary of The Company and Samruddhi have decided to amalgamate Samruddhi with Ultra Tech under a scheme of amalgamation with effect from 1st July, 2010. This will result in the creation of the largest pure play cement Company in India. All the shareholders of Samruddhi will receive 4 equity shares of Rs.10 each of Ultra Tech for every 7 shares of Rs.5 each held on record date to be fixed up for the purpose. The merger is expected to be completed by July, 2010.

4. Acquisition of Star Cement assets

Ultra Tech plans to acquire the assets of ETA Star Cement Company LLC comprising of 2.3 million TPA clinker facility and grinding units of 2.1 million TPA in UAE, 0.4 million TPA in Bahrain and 0.5 million TPA in Bangladesh. With this acquisition, Ultra Tech will gain direct access to the markets in the Middle East and neighbouring regions.

The Company will continue to focus on the Cement and VSF businesses. The combination of these two businesses has created significant shareholder value with cash flow from VSF business being utilised for growing the cement business aggressively. Consequently, revenues and EBIDTA have grown 4.7 times and 8.6 times respectively in the last decade. Grasim has significantly outperformed the sensex over the last eleven years multiplying its share price 17.8 times as against a 4.7 times growth of the sensex.

PERFORMANCE REVIEW

Cement demand saw a double digit growth of 11%, one of the highest in the decade, recording total despatches of around 200 million tonne. This is despite sub normal monsoon. The demand upturn has been generally broad based. The growth was supported by economic recovery, reduction in excise duty, Government’s initiatives viz. National Rural Employment Guarantee and low cost housing. The eastern region grew at a phenomenal 22% - the highest among all the regions. The northern region came a close second, with a growth of 16% spurred by the low cost housing schemes of various state governments and the infrastructure creation for Commonwealth Games in New Delhi. The growth in the Southern region was muted due to floods in A.P. and Karnataka, and the political unrest in A.P. during part of the year. The Company outperformed the industry by a wide margin, supported by capacity addition, recording cement volumes growth of 14%. Its market share increased from 17.8% in FY09 to 18.5% in FY10.

The average cement realizations were marginally higher for Grasim standalone/Samruddhi’s cement business and flat for UltraTech vis-a-vis the last year. The bunching of new capacities created a downward pressure in cement prices across the regions in the third quarter. The decline was more pronounced in the Southern Region. Unavailability of railway wagons in various pockets of the country resulted in under utilisation of capacity. Quarter 4 witnessed a partial recovery in cement prices with renewed construction activity and increase in taxes and energy prices.

Clinker export prices declined during the year on account of lower demand and excess capacity creation in the Middle East.

White Cement division has grown from strength to strength. The division has sustained its leadership over the years through delivering impeccable quality products. It continues to achieve record performance every quarter, on the back of both increased volumes and prices. White Cement volumes increased by 16%. Wall care putty continued to grow impressively, recording a growth of around 40% for the second year in a row. The Ready mix concrete division is emerging out of the sluggishness, with recovery in the real estate segment. The economic meltdown had seriously affected the financial health of real estate players which in turn impacted the performance of Ready mix concrete division for the last one and a half years. Volumes in the fourth quarter however, grew by 18%.

On the cost front, the business gained from the global softness in energy prices in the first nine months. It has petered off in the last quarter. With new power plants commissioned during the last year, the share of captive power in Grasim increased from 60% to 75%. Ultra Tech’s captive power usage was 73% as against 39% last year. With improved operating efficiencies in terms of higher captive power, lower lead distance, higher blended cement and reduced costs, operating margin of the cement business for the year improved from 27.5% to 30.7%, despite the impact of ramp up cost of the new capacities.

OUTLOOK FOR CEMENT BUSINESS

Cement demand is expected to remain buoyant with increased domestic consumption, both in the government as well as the private sector. The Government has reiterated its commitment to infrastructure spending in the budget. The Planning Commission in its midterm appraisal of the 11^th year plan has envisaged an expenditure of Rs.20.5 trillion on infrastructure during the plan period. Additionally, the broad based economic growth will continue to drive cement demand from semi urban and rural India with their rising prosperity levels. With the economy having recovered from the slow down, revival in organised real estate and corporate capex are also expected to add to the buoyancy in demand. Overall, cement demand is expected to grow at a robust 10% + for the next five years.

The surplus supply scenario, however, is expected to create short term pressure. New capacities commissioned during FY10 are in various stages of ramp up while additional capacities continue to be set up. The full ramp of capacities might lead to a surplus scenario after peak demand in Q1FY11, which may last for 6 to 8 quarters.

On the cost front, higher coal prices are likely to exert pressure on margins in FY11. The Company’s focus on higher volume growth, better logistics support, together with cost efficiency, should help in partially mitigating the impact.

The Company continues to focus on achieving greater than industry growth and building sustainable competitive advantage through its reach, service and cost competitiveness. Its distribution network is being further expanded throughout India particularly in rural areas to increase the reach. Customer responsiveness is being further improved with the implementation of online order booking and tracking system. To enhance customer experience and create awareness at the end consumer level, The Company has developed home concept stores, UltraTech Building Solutions, where customers can buy cement and allied building products.

CAPEX PLAN – CEMENT BUSINESS

Nurturing growth and sharpening competitiveness are at the core of our business strategy. The Company’s capex investments are aimed at meeting these objectives. They aim to grow faster than the market with a blend of organic and inorganic growth. The Company would require an additional capacity of around 25 million tonnes over the next 5 years just to retain its market share. The Company is examining various options and has a target to start work on Brownfield expansions of 10 million tonnes latest by Q4FY11 after the completion of the detailed study.

An overall capital outlay of Rs.44750.000 Millions has been earmarked for the cement business excluding capex for new capacity creation. This will be spent over the next 2 years on additional grinding and evacuation facility, logistics infrastructure, waste heat recovery systems, captive thermal power plants, completion of existing projects and modernization.

PERFORMANCE REVIEW

The recovery in the textile sector was faster than anticipated and was more pronounced in the emerging markets of China and other Asian countries, and South America. While the improvement in Chinese demand was largely driven by the increase in their domestic consumption, other markets derived the advantage of improvement in their domestic market as well as export markets. This recovery led to a sharp increase in demand for VSF. The situation was further accentuated by a 7% decline in global cotton production in 2009. However, VSF production in China despite available capacity was restricted due to limited availability of Cotton Linter Pulp and Rayon grade Wood Pulp. The high demand for VSF with constraints in production has led to an increase in realization.

Against this backdrop, The Company’s sales volumes increased significantly by 29% (buoyed by additional volume from the newly installed capacity at Kharach plant towards end FY08) and realisation increased by 10% over the last fiscal. Higher demand emanated from both domestic as well as export markets. These macro environmental factors coupled with the availability of low cost pulp from captive facilities and long term contracts resulted in a significant rise in the margins and profits for the year under review.

CAPEX PLAN

The Company is setting up an 80,000 TPA Greenfield VSF plant at Vilayat (Gujarat). The Company has already acquired the land and received necessary environmental and other clearances for the project. The plant is likely to be commissioned in FY13. The Company is also examining a proposal for setting up of facilities for caustic and power plants at Vilayat.

SECTOR OUTLOOK

The sustained recovery of consumer demand in the US and European markets is critical for the growth of the VSF sector. While recovery in the western markets is currently slow, the outlook for VSF in the short to medium term looks positive due to the shortage of cotton and increase in the domestic demand of China, Asia and a few other countries. At the same time, high ruling prices of VSF have increased its price differential with other competing fibres, posing a threat of substitution which may adversely impact VSF volumes.

The input costs, mainly of Pulp and Sulphur, have increased sharply in the last few months. The pulp prices are expected to rule high in the short to medium term as no new pulp capacities may come on stream in the near future and the demand is expected to remain high. The rising trend in input costs with limited possibility of further increase in prices and emerging surplus capacity situation in China is expected to exert pressure on margins.

BUSINESS OUTLOOK

In the short to medium term, they expect the demand for VSF to be firm. Input costs are expected to rise, leading to a reduction in margins from current high level. The production at the Nagda plant is likely to get suspended for a few weeks in Q1FY11 due to water shortage. However all efforts are being made to minimize the stoppage.

The Company’s focus and efforts to increase the share of exports and specialty fibre will continue. The Textile Research and Application Development Centre at Kharach is constantly developing newer applications of VSF in close co-ordination with customers. The business will also continue to focus on cost reduction measures particularly in energy, logistics and overheads to maintain its position of lowest cost producer.

PERFORMANCE REVIEW

The chemical business achieved its highest ever caustic production, registering a growth of 11% despite the water shortage impacting operations in the first quarter. Sales volumes grew by 11% against the industry growth of 5%. In spite of higher volumes, the operating profit decreased by 20%, mainly on account of decrease in ECU realisations. Caustic prices fell due to cheap imports.

SECTOR OUTLOOK

Caustic prices are expected to remain under pressure due to the commissioning of new capacities coupled with cheap imports. However, a gradual price recovery is expected with the improvement in market conditions and international prices. Chlorine prices may improve with higher demand for chlorine derivatives in export markets.

BUSINESS OUTLOOK

The Business is planning to build caustic capacity along with the VSF greenfield project at Vilayat, Gujarat, to meet the captive requirement for VSF.

Production will be curtailed in the first quarter till the onset of monsoon due to water shortage. The business will continue to take energy conservation measures to reduce power consumption.

GRASIM BHIWANI TEXTILES LIMITED (GBTL)

GBTL, the textile subsidiary of The Company posted a better than expected performance. Net revenue increased by 10% to Rs.2870.000 Millions with higher sales in both, Over The Counter and Readymade Garments segments. A new thermal power plant commissioned last year has led to substantial cost savings and has generated profits on power sale. In addition, captive power provides uninterrupted power supply, enabling better capacity utilization. Net profit increased to Rs.46.000 Millions as against a marginal profit of Rs.30.000 Millions in FY09

DEMERGER OF CEMENT BUSINESS

The Company had embarked on a restructuring exercise under which the Cement Business has been demerged into Samruddhi Cement Limited (Samruddhi), a subsidiary of the Company, pursuant to a Scheme of Arrangement under Sections 391 to 394 of the Companies Act, 1956 w.e.f 1^st October, 2009, being the Appointed Date fixed for this purpose. In consideration, Samruddhi shall issue 1 (one) equity share of the face value of Rs.5/- credited as fully paid up, to you for every equity share you hold in the Company as on 28^th May, 2010, being the Record Date fixed for this purpose. This would be in addition to the shares held by you in the Company as of the Record Date. Consequently, the shareholding of The Company in Samruddhi will get diluted to about 65%. The demerger allows you, the shareholders of the Company, to participate directly in a focussed entity engaged in the cement business, in a manner such that the Company’s parentage and control continues. The Scheme has become effective on 18^th May, 2010, having received the regulatory approvals, interalia, the sanction of the Hon’ble High Court of Madhya Pradesh, Indore and Hon’ble High Court of Gujarat, Ahmedabad.

SALE OF SPONGE IRON BUSINESS

With a view to have increased focus on its core businesses, the Company sold off its Sponge Iron Business. The sale was completed on 22^nd May, 2009.

MERGER OF SAMRUDDHI CEMENT LIMITED WITH ULTRATECH CEMENT LIMITED

The Board of Directors of UltraTech Cement Limited (UltraTech) and Samruddhi, The Company’s subsidiaries, have decided to amalgamate Samruddhi with UltraTech under a Scheme of Amalgamation under Sections 391 to 394 of the Companies Act, 1956, subject to necessary approvals w.e.f. 1^st July, 2010, being the Appointed Date fixed for the purpose. In terms of the Scheme, the shareholders of Samruddhi will receive 4 (four) equity shares of

UltraTech of the face value of Rs.10 each, credited as fully paid up, for every 7 (seven) equity shares of Samruddhi of the face value of Rs.5 each held on the record date to be fixed for the purpose. The Scheme is pending for sanction before the Hon’ble High Courts of Bombay and Gujarat.

These initiatives which will yield rich dividends in the long run and lay a strong foundation for the future growth of the Company.

STANDALONE RESULTS

(RS. IN MILLIONS)

Particular	Three Months Ended 31.12.2010	Nine Months Ended 31.12.2010
(a) Net Sales / Income from operations	12136.700	30912.300
(b) Other Operating Income	436.500	930.700
Total Operating Income	12573.200	31843.000
Expenditure
a) (Increase) / Decrease in stock in trade and work in progress	(13.200)	(414.600)
b) Raw Material Consumed	5365.000	13583.600
c) Purchases of Finished Goods	--	--
d) Payment to and Provision for Employees	801.900	2334.200
e) Power and Fuel Cost	1405.900	3595.900
f) Freight and Handling Expenses	142.000	366.600
g) Depreciation	442.400	1340.200
h) Other Expenditure	800.600	2162.500
Total	2044.600	23863.400
Profit from operations before other income, interest	3628.600	2874.600
Other income	405.300	2127.000
Profit before interest and tax	4032.000	11001.600
Interest	117.400	322.500
Profit from Ordinary Activities before tax	3916.500	10679.100
Tax expense	1089.300	2817.400
Net Profit Ordinary Activities after tax	2827.200	7861.700
Extraordinary Item : Profit (Net of Tax) on Sale of Sponge Iron unit	-	-
Net Profit	2827.200	7861.700
Paid up equity share capital (Face value of Rs.10/- per share)	217.000	917.000
Reserves	-	-
Earning per share (EPS)
Basic EPS for the period before Extraordinary Item (Rs.)	30.83	25.73
Diluted EPS for the period before Extraordinary Item (Rs.)	30.81	85.69
Basic EPS for the period after Extraordinary Item (Rs.)	30.83	85.73
Diluted EPS for the period after Extraordinary Item (Rs.)	30.81	85.69
Public Shareholding
Number of shares	58312	583112
Percentage of shareholding	63.59%	63.59%
Promoters and Promoters group Shareholding-
a) Pledged /Encumbered
Number of shares	--	--
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	--	--
Percentage of shares (as a % of total share capital of the company)	--	--
b) Non Encumbered
Number of shares	23386	23386
Percentage of shares (as a % of total shareholding of the promoter and promoter group)	100.00%	100.00%
Percentage of shares (as a % of total share capital of the company)	25.50%	25.50%

SEGMENT REPORTING – STANDALONE

(RS. IN MILLIONS)

Particular	Three Months Ended 31.12.2010	Nine Months Ended 31.12.2010
SEGMENT REVENUE
Viscose Staple Fibre	11892.500	28408.800
Cement - Grey,White and Allied Products *	--	--
Sponge Iron **	--	--
Chemicals - Caustic Soda and Allied Chemicals	1475.300	3862.000
Textiles - Yarn	194.800	558.900
TOTAL	13562.600	32829.700
(Less) : Inter Segment Revenue	(389.400)	(986.700)
Total Operating income	12573.200	31843.000
SEGMENT RESULTS
Viscose Staple Fibre	3618.300	8859.200
Cement - Grey, White and Allied Products *	--	--
Sponge Iron **	--	--
Chemicals - Caustic Soda and Allied Chemicals	229.300	692.800
Textiles - Yarn	11.800	33.300
Add / (Less) :	(117.400)	(322.500)
Interest
Net Unallocable Income / (Expenditure )	174.500	1416.300
Profit before Extraordinary Item and Tax Expenses	3916.500	16679.100
CAPITAL EMPLOYED
Viscose Staple Fibre	16857.400	16857.400
Cement - Grey, White and Allied Products *	--	--
Sponge Iron **	--	--
Chemicals - Caustic Soda and Allied Chemicals	4168.100	4168.100
Textiles – Yarn	185.600	185.600
TOTAL	21211.100	21211.100
Unallocated Corporate Capital Employed	68754.500	68754.500
TOTAL CAPITAL EMPLOYED	89965.600	89965.600

* Cement Business has been demerged into Samruddhi Cement Limited (a subsidiary of the Company) w.e.f. 01.10.2009.

** Sponge Iron unit has been sold w.e.f. 22.05.2009.

NOTES

1. a. Pursuant to C1aue i of the Listing Agreement, the Company has opted to publish consolidated Iiaaneia1 Results. The Standalone Financial Results are available at the Company’s websites viz: www.grasim.com and ww.adiityabirla.com and on websites of the Stock Exchanges BSE (www.besindia.com) and NSE (www.nesindia.com)

b. The above Unaudited financial results for the quarter and nine months ended 31.12.2010 have been reviewed by the Audit Committee of the Board and approved by the Board of Directors at their respective meetings held on 25.12.2011. The limited review, as required under Clause 41 of the Listing Agreement, has been completed by the auditors of the Company and the related report is being submitted to the concerned Stock Exchanges.

2. b. Key numbers of Stand-alone Financial Results of the Company for the quarter and nine months ended 31.12. 2010 are as under:

	Quarter Ended		Nine months Ended
	31.12.2010	31.12.2009	31.12.2010	31.12.2009
				Reported	Restated
Total operating Income	12573.200	10580.100	31843.000	71717.200	28403.600
Profit from Ordinary Activities before Tax	3916.500	4209.000	10679.100	21565.300	10442.200
Profit from Ordinary Activities after Tax	2827.200	2619.100	7861.700	14666.800	6946.900

b. The results of the corresponding period as published in. the previous year included the results of the erstwhile Cement Business, of the Company. as at the lime of announcement of such results the scheme for demerger of the Cement Business had not become effective. As the demerger ha since become effective from 18.05.2010, with effect from 01.10.2009 (Appointed bate), the financial results (both standalone and consolidated) for the corresponding periods of the previous year have bean recast to give impact of the said demerger effective from 01.10.2009.

c. Thu reported numbers for the nine months ended 31.12.2009 are not comparable as the same include results of the Sponge Iron and Cement Businesses of’ the Company, sold / demerged during the Financial year 2009-10, effective from 22.05.2009 and 01.10.2000 respectively. For better comparison, the restated results for the nine months ended 31.12.2009 have also been given excluding the results of the Sponge iron and Cement Businesses.

3. Samruddhi Cement Limited (SCL), a subsidiary of the Company, into which the erstwhile Cement Business of the Company was demerged w.e.f 01.10.2009 has been amalgamated with Ultra Tech Cement Limited (UltraTech), another subsidiary of the Company, w.e.f 01.07.2010. Accordingly, the shareholder of SCL have been issued shares by Ultratech in lieu of shares of SCL. As a result the shareholders at’ the Company have direct participation in UltraTech and also shareholding of the Company in UltraTech stands increased to 60.34%. The Net Profit (after Minority Share) for the nine mouths ended 31.12.2010 is therefore not strictly comparable with that of the corresponding period of the previous year.

4. Ultra Tech Cement Middle East Investments Limited, a subsidiary of the company, acquired controlling interest of Star Cement and other associate companies, in a phased manner during the quarter ended 30.09.2010. The operations of these subsidiaries have been consolidated in the accounts of the company in this quarter from the respective date of transfer of control. As a result, the loss of Rs 85.500 millions pertaining to the last quarter has been accounted for in the current quarter.

5. The quarter, the Company has allotted 11677 fully paid up equity shares of Rs.10 each upon exercise of stock options granted under the employee Stock Option Scheme, 2006 (ESOS 2006).

6. Previous periods figures have been regrouped / rearranged wherever necessary to conform to the current period’s classification.

7. The status of investors complaints is as under:

Opening – 0, Received – 4, Resolved – 4, Closing - 0

TRADE REFERENCE:

· Fine Polycolloids Private Limited

· Sankalp Chemical, Mumbai

· VRW Refractories

· Bright Star Industries

FIXED ASSETS

· Land

· Building

· Workers’ Quarters under Government Subsidized Schemes

· Railway Sliding

· Plant and Machinery

· Ships

· Furniture, Fittings and Office Equipments

· Vehicles

· Intangible assets – Computer Software

AS PER WEBSITE

Subject a flagship company of the Aditya Birla Group, ranks among India's largest private sector companies, with consolidated net turnover of Rs.184 billion and a consolidated net profit of Rs.22 billion (FY2009).

Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per cent of its revenues and operating profits.

The Aditya Birla Group is the world’s largest producer of VSF, commanding a 23 per cent global market share. Grasim, with an aggregate capacity of 333,975 tpa has a global market share of 12 per cent. It is also the second largest producer of caustic soda (which is used in the production of VSF) in India.

In cement, Grasim along with its subsidiary UltraTech Cement Limited has a capacity of 45.7 million tpa as on 30 June 2009 and is a leading cement player in India. In July 2004, Grasim acquired a majority stake and management control in UltraTech Cement Limited. One of the largest of its kind in the cement sector, this acquisition catapulted the Aditya Birla Group to the top of the league in India.

VISCOSE STAPLE FIBRE

Subject is India's pioneer in viscose staple fibre (VSF).

Cement
Subject has grown to become a leading cement player in India

Chemicals
Subject has India's second largest caustic soda unit.

Textiles
Subject has strong nation-wide retail network and also caters to international fashion houses in USA and UK.

PROFILE:

Company was incorporated on 25 August 1947, just 10 days after India became independent, manufacturing textiles made from imported raw materials. It is now a global leader in viscose staple fibre (VSF), the country's largest merchant producer of sponge iron and the second-largest caustic soda maker in India; and poised to be India's largest cement manufacturer.

MILESTONES

2009

Grasim hives off its sponge iron business by way of slump sale

Grasim commissions a greenfield cement plant at Kotputli (Rajasthan).

Vikram Cement and Aditya Cement wins the Federation of Indian Mineral and Industries' "Social Awareness Award for the year 2008-09".

Grasim's plants Vikram Cement (Khor, Madhya Pradesh) and Aditya Cement (Sambhupura, Rajasthan), have won the TERI (The Energy and Resources Institute) CSR Award for their sterling work in 37 villages among 12,550 families in the area of healthcare.

Mr. Ratan Shah, the Group Executive President and Chief Marketing Officer, Cement and Mr. R. M. Gupta, Sr. Executive President, Vikram Cement and Aditya Cement, received the Award at the hands of the honourable President of India, Mrs. Pratibha Patil on 5 June at Vigyan Bhavan, New Delhi.

2008

Grasim commissions brownfield expansion at Aditya Cement at Shambhupura (Rajasthan).

2007

Grasim divests Shree Digvijay Cement Company Limited.

Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited.

Eighteen ready-mix concrete plants commissioned.

2006

Formed joint venture company, Birla Jingwei Fibres Company Limited and acquired VSF plant in China.

2005

Acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.

2004

Completion of the implementation process to demerge the cement business of L and T and completion of OpenOffer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech.

UltraTech Board reconstituted with Mr. Kumar Mangalam Birla taking over as Chairman.

The Staple Fibre Division and Engineering and Development Division of Grasim, Nagda receives SA 8000:2001 certification from SAI in recognition of its social accountability initiatives.

2003

The board of engineering major, Larsen and Toubro Limited (L and T) decides to de-merge its cement business into a separate cement company, UltraTech CemCo Limited, now UltraTech Cement Limited.

Grasim's Chemical Division receives the SA 8000 (Social Accountability) and OHSAS 18001 certifications.

2002

Grasim divests Gwalior textiles unit. Textile operations consolidated at Bhiwani to manufacture 'Grasim' and 'Graviera' brands.

Merger of Dharani Cements Limited in Grasim Industries Limited.

VSF Research and Application Centre set up at Kharach in Gujarat.

2001

Consultancy and software services spun off; becomes separate entity, Birla Technologies Limited.

Grasim acquires 10% stake in L and T. Subsequently increases stake to 15.3% by October 2002.

Four Ready-Mix Concrete plants commissioned with an aggregate capacity of one million cubic meters.

2000

The Lawson Competency Centre is set up as a division of Birla Consultancy and Software Services, the software arm of Grasim, following a tie up with Lawson Software (USA), among Fortune's top five private software companies.

1998

Atholville Pulp Mill at Canada - a joint venture with Tembec Inc.

The cement business of Group company, Indian Rayon and Industries Limited demerged to Grasim.

1999

Grasim's viscose staple fibre (VSF) and rayon grade pulp units at Mavoor are closed down owing to lack of raw material.

Third issue on 16 September 1999 to Indian Rayon's GDRs holders: Three GDRs in Grasim for every 10 GDRs in Indian Rayon, on de-merger of its Cement business into Grasim. Nos: 1,624,336

1996

The first phase of Grasim's fourth VSF plant is commissioned at Kharach (Gujarat).

1995

Grasim commissions two greenfield cement plants — Grasim Cement at Rawan (Chattisgarh) and Aditya Cement at Shambhupura (Rajasthan).

Vikram Woollens, spinning unit at Malanpur (Madhya Pradesh) set up.

1994

Second issue of GDRs on 15 June 1994 for US $100 million. Nos: 4,878,048

1993

Vikram Ispat, India's third largest gas-based sponge iron plant, is commissioned.

Birla Consultancy and Software Services is set up, to provide IT consulting services and for software development.

1992

Grasim sets up Birla International Marketing Corporation (BIMC), a merchant exporter.

First GDR issue on 2 December 1992 for US$ 90 million. Nos: 6,933,745

1991

A third production line is added at Vikram Cement.

1987

Vikram Cement's second production line is commissioned.

1985

Vikram Cement — Grasim's first cement plant goes on stream at Jawad (Madhya Pradesh).

1977 

Grasim's third rayon plant – at Harihar, Karnataka – goes into production.

1972

VSF and Pulp plant at Harihar (Karnataka) based on in-house engineering and know-how.

Nagda commences production of rayon grade caustic soda — for VSF production.

1968

Rayon production commences at Mavoor, Kerala.

1963

Composite textile mill at Bhiwani (Haryana).

1962

Inception of Engineering Division for plant and machinery for VSF.

1954

VSF production commences at Nagda (Madhya Pradesh).

1950

Production of fabrics at Gwalior with imported man-made rayon.

1947

Grasim Industries incorporated.

ACQUISITIONS AND RESTRUCTURING

2007

Grasim divests Shree Digvijay Cement Company Limited.

Textile units at Bhiwani transferred to a subsidiary, Grasim Bhiwani Textiles Limited.

2006

Formed joint venture company, Birla Jingwei Fibre Company Limited and acquired VSF plant in China.

2005

Acquired St. Anne Nackawic Pulp Mill, Canada with Tembec Inc.

2004

Completion of the implementation process to de-merge the cement business of L and T and completion of open offer by Grasim, with the latter acquiring controlling stake in the newly formed company UltraTech.

UltraTech Board reconstituted with Mr Kumar Mangalam Birla taking over as Chairman.

2003

The board of engineering major, Larsen and Toubro Limited (L and T) decides to de-merge its cement business into a separate cement company, UltraTech CemCo Limited, now UltraTech Cement Limited

2002

Grasim divests Gwalior textiles unit. Textile operations consolidated at Bhiwani to manufacture Grasim and Graviera brands.

Merger of Dharani Cements Limited in Grasim Industries Limited.

2001

Consultancy and software services spun off; becomes separate entity, Birla Technologies Limited.

Grasim acquires 10 per cent stake in LandT. Subsequently increases stake to 15.3 per cent by October 2002.

1998

Atholville Pulp Mill at Canada – a joint venture with Tembec Inc.

Dharani Cements Limited.

Shree Digvijay Cements Limited.

The cement business of Group company, Indian Rayon and Industries Limited transferred to Grasim.

RECENT ACCOLADES

§ Forbes magazine ranks Grasim among the fabulous 50 companies in Asia.

§ Ranked second for Best Corporate Governance Practices in Asia-Pacific by IR Global Rankings. Also ranked best company in Corporate Governance Practices in Basic Materials Industry, globally.

§ Ranked as the Best Investor Relations Company — Building Materials in Asia by Institutional Investors Magazine.

§ The CII - Leadership and Excellence Award in Safety, Health and Environment presented to Staple Fibre Division, Nagda.

§ The Asian Corporate Social Responsibility Award presented to Staple Fibre Division, Nagda.

§ The 2004 Stockholm Industry Water Award presented to Staple Fibre Division, Nagda.

§ The Deming Quality Award presented to Birla Cellulosic, Kharach.

§ The IMC Ramkrishna Bajaj National Quality Award presented to Birla Cellulosic, Kharach.

§ Golden Peacock Environment Management Award presented to the VSF unit at Harihar.

§ Global Cement Award for lowest injury incidence rate presented to Grasim South, Reddipalayam.

§ National Award for Quality Excellence in Indian Cement Industry presented to Grasim Cement, Raipur.

§ National Award for Electric Energy Excellence in Indian Cement Industry presented to Vikram Cement, Jawad.

PRESS RELEASE

02.02.2011

Cement performance for January 2011

The cement production of UltraTech Cement, the Aditya Birla Group company, for the period April-January 2011, has moved up by 3.23% at 31.377 millions mt as against 30.396 millions mt during April-January 2010. Dispatches rose by 3.19% at 31.301 millions mt in April-January 2011 vis-à-vis 303.33 millions mt in the corresponding period last year.

Cement production for the month of January 2011 stood at 3.389 millions mt and dispatches at 3.341 millions mt.

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.45.38
UK Pound	1	Rs.73.08
Euro	1	Rs.61.60

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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		75

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
-	NB	New Business	-

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.