DSCL sriram2

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Formed in 1990 consequent to restructuring of DCM Ltd. an over 100

Year old company.

Two lines of business Extensive presence across Agri-Value Chain and

Chloro-Vinyl businesses.

Building some new businesses in both sectors Hybrid Seeds, Rural Retail

(Hariyali), UPVC Windows & Door Systems (Fenesta).

280 MW Power generating capacity by October, 2008.

Turnover - Rs. 2800 Crs. and Avg. EBITDA level - Rs. 375 Crs.

Strong growth track record Turnover growth - 13% p.a. and EBITDA -16%

p.a. since 1990.

Investments of - Rs. 2000 Crs. during 2004-2009

Empowered SBUs, Robust processes and sound governance practices.

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Sir Shri Ram

Nothing can better sum up the homage paid to great son and philanthropist of Delhi, BareyLalaji, Sir Shri Ram who began as a humble worker and went on to set up one of Indiaslargest business houses - the DCM Group. Not only did Lalaji achieve great height in businessenterprise; he also participated in full measure in the crucial early stages of nation building.Everyone is familiar with the name of multiple facets of the industries and institutions on whichhe left his imprint - be it the DCM Limited, Bengal Potteries, Jay Engineering Works, manysugar mills, Sindri Fertilizers, the Lady Shri Ram College, Shriram College of Commerce, DelhiSchool of Economics and umpteen others. But who is this Barey Lalaji?

Born into a family of Agarwal banias of modest means, Shri Ram, in the 79 years of his life,built an industrial empire manufacturing a vast variety of goods like - textiles, sugar, alcohol,heavy, chemicals, vanaspati, pottery, fans, sewing machines, electric motors and capacitors.The industrial legacy that he left behind was valued at Rs 600 million at the time of his death.

Reared in milieu which graft nepotism, black marketing and tax evasion were considered amust for success in business, Shri Ram set for himself rigid standards of morality in hisdealings with the public and government and made no compromises in order to earn moremoney or gain a favour. While himself deprived of opportunities for higher education, henevertheless understood how, important such education was in building the future of a nation.

As a result he helped to finance a network of schools, colleges, industrial institutes andresearch laboratories. He was also the founder chairman of the Industrial Finance Corporationand Chairman of Sindri Fertilizers, the first national venture in the public sector in free India.Little is known of Shri Rams ancestors. Khuswant Singh writes in his Shri Ram: A Biographyof the oldest family name on records, is the one of Kanji Mal. Nothing more is known abouthim. One of Kanji Mals descendants was Rattanchand who was a confectioner. He was the

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grandfather of Shri Rams grandfather. Rattanchand was a man of influential means. He wasable to secure for his son Badri Das, the post of treasurer in the Karnal Commissariat of the

British ArmyBadri Das was very mature for his age and he fared well by saving and investingin buying real estate in Firozpur and Delhi. He died in 1874 leaving behind four sons of whomthe youngest, Bishambar Das was somewhat more distinguished. Bishambar Das had threesons - Gopal Rai, Girdhari Lal and Madan Mohan Lal. Shri Ram was born to Madan Mohan Laland his wife Chando Devi on April 27, 1884.

While Shri Ram lacked formal education he read extensively. His reading included religiousscriptures, Sanskrit classics, Urdu and Persian poetry and some English biographies. Heassiduously cultivated men of learning and culture. But most of all he admired scientists onwhom he pinned his hopes for the salvation of his country. One of his lovable eccentricitieswas that he carried out experiments to produce new varieties of food in his own room and then

subjected his none too robust digestive system to his new recipes.

The secret of Shri Rams enlightened approach to people of different faiths lay in his basicpatriotism, making money was of little consequence to him; not once did he succumb to thetemptation of netting an extra buck or two in the black market or by evading tax. He was anidealist who believed in raising India into an industrial nation. His love of India did not makehim dislike or distrust Pakistan. Many of his friends were the members of the Muslim League.At the behest of his friend in Lyallpur Cotton Mills in Pakistan, Khan Sahib Ahmed Islam Khan,he laid the foundation of a mushaira what in the later years came to be known as the Shanker-Shad Mushaira.

Shri Ram had this uncanny ability to spot the right man for the right job a rare quality thatcontributed to his success. He made many mistakes in the choice of friends but seldom did heerr in the selection of a business executive. Shri Rams choice was not based on the scrutinyof a Curriculum Vitae but on an inborn gift, a sort of built-in Geiger-counter which ticked whenhe came across the man he was looking for. This helped him to pick up a humble mistry andmake him a work manager, to convert an engineer into an administrator, to mould a perfume-seller into the overall head of a vast enterprises producing precision instruments and so on. Sosure was Shri Ram with this instinct that once he made up his mind about the man, he gavethat man every latitude, there after his sole concern was with the results.

Shri Ram, described by his umpteen friends, was indeed a true friend. He refused to believe

that any of his friends exploited him. And many did quite blantantly. He made friendship into anarticle of faith. His house was like a dharamshala remarks 90 years old freedom fighter ArunaAsaf Ali. He was unable to eat food unless every seat at the table was occupied. Thisindiscriminate hospitality at times caused great strain to the members of his family. But hisprinciple was, the more, the merrier.

While just in his thirties, Shri Ram got himself known in the industrial as well as the educationalcircles. He was nominated to the Delhi Municipal Committee. Through his business

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connections with Ram Bahadur Lala Sultan Singh and more to with that of his son, RaghubirSingh, who had started the Modern School in Delhi, Shri Ram began to think of problems of

education in India. He ensured that his sons Murli Dhar, Bharat Ram and Charat Ram went tothe Modern School where childern of more advanced Indian families were studying. He alsowas intrumental in setting up several prestigious institutions of higher learning and arts such asthe Lady Shri Ram College and Delhi School of Economics, Shriram Center for PerformingArts etc.

The initials DCM went on to become known, not only in India, but also in Africa and Europe aswell. Lalaji was knighted by the British Government for his distinguished career as anindustrialist and philanthropist. To the very end Lalaji however retained his simple demeanorand humbleness, his love for his country and his undyingly loyalty to his friends.

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The Delhi Cloth & General Mills Co. Ltd. (DCM), was founded in 1889 with the establishmentof a Spinning Mill at Delhi. Thereafter, the company expanded and diversified into largesegments of industry areas and played a leading role in the industrialization of India.

In 1990, to create more manageable business entities, DCM Ltd., was restructured into fourseparate companies. DCM Shriram Consolidated Ltd. (DSCL) took over 1/3rd of the businessesby the merging of the following units of the erstwhile DCM:

Shriram Fertilizer & Chemicals, Kota ( Rajasthan) - Fertilizers, Plastics, Chlor

Alkali and Power

Shriram Cement Works, Kota ( Rajasthan) - Cement

Swatantra Bharat Mills and DCM Silk Mills (Delhi) - Textiles

In the decade 1990-2000, DSCL added the following units to its portfolio:

Shriram Alkali & Chemicals, Bharuch (Gujarat) - Chlor Alkali

Shriram Environment & Allied Services, Gurgaon (Haryana) - Environment &

Allied Services

Ghaghagra Sugar, Lakhimpur Kheri ( Uttar Pradesh) - Sugar

Shriram Bioseed Limited, Hyderabad (Andhra Pradesh) - Seeds

DSCL ESCO Limited, New Delhi - An Energy Services Company

Hariyali Kisaan Bazaar was started

Fenesta windows were launched.

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DCM Shriram Consolidated Limited (DSCL), a company with turnover of Rs. 2940 crores and primarybusiness interests in

Agri Businesses: Sugar, Urea, Agri Inputs, Shriram Bioseeds, Hariyali Kisaan

Bazaar

Energy Intensive Businesses : Chemicals, PVC Resins, Cement

Value Added Businesses : Fenesta Building Systems, PVC Compounds,

Energy Services

Other Businesses: Textiles

They have manufacturing facilities at Kota (Rajasthan), Bharuch (Gujarat), and Ajbapur,Rupapur, Hariawan and Loni(UP). Our hybrid seed operations are at Hyderabad (India),Vietnam, Philippines and Thailand. The Company also has its windows fabrication units atBhiwadi, Bangalore, Mumbai, Hyderabad and Chennai.

Founded by Sir Shriram in 1889 (as DCM limited), today DCM Shriram Consolidated Limited( DSCL) is managed by Mr. Ajay S. Shriram, Chairman and Senior Managing Director and Mr.Vikram S. Shriram, Vice Chairman and Managing Director along with a highly professionalexecutive team.

DSCL has a strong brand equity reflective of credibility, ethical values and consistent high

quality product image. With over 30 years of experience in managing large scale processindustries with sustained high level of performance, DSCL meets the needs of a wide range ofcustomers from farmers to industrial users, from house builders to business owners. Fosteringenduring relationships is at the core of DSCLs business philosophy - with vendors, businesspartners, and customers and within the organization between employees.

The company operates in a range of energy intensive businesses in the Chloro-Vinyl and agri-sectors. We are always seeking to produce multiple downstream products in a manner that wederive the maximum earnings accrual from every unit of power that we generate in asustainable way and in varied market conditions. We follow this model across ourmanufacturing operations at different locations with an endeavor to add value while we curtail

operating costs. Such an approach allows us to direct resources and inputs to variousdownstream businesses in the most efficient manner and also become a cost competitiveproducer in our chosen area.

As a leading equal opportunity employer in India, DSCL has a motivated and dynamicmanagement team of highly qualified professionals and dedicated workmen and staff whosework has shown the way towards creating Team Excellence .

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Registered Office DCM Shriram Consolidated Limited6thFloor, Kanchenjunga Building,18, Barakhamba Road,New Delhi 110 001.Tel. No. : (91) 11-23316801Fax No. : (91) 11-23318072E.mail : [email protected]

Bankers Punjab National BankState Bank of IndiaBank of BarodaOriental Bank of CommerceHDFC Bank Limited

Auditors M/s. A.F. Ferguson & Co.,New Delhi

Subsidiary Companies DCM Shriram Credit and InvestmentsLimited

DCM Shriram Aqua Foods LimitedDCM Shriram International LimitedDSCL Energy Services Company LimitedDCM Shriram Infrastructure LimitedAnant Thermal Energy Limited

DCM Shriram Energy and Infrastructure LimitedHariyali Rural Ventures LimitedHariyali Finance FoundationShriram Bioseed (Thailand) LimitedShriram Bioseed Ventures LimitedShriram Bioseeds LimitedAffee Investments Corp.Zeus Investments LimitedBioseed Genetics International Inc.Bioseeds LimitedShriram Bioseed Genetics India LimitedBioseed Research India Private LimitedBioseed Vietnam Limited

Bioseed Research Philippines Inc.Shri Ganpati Fertilisers LimitedHariyali Rural Services Limited

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DSCL will continue togrow with focus onintegration,driving cost efficiencyanddelivering superiorvalue

Dear Friends,We are happy to report yet another year of satisfying progress for your company. Ourintegrated business model with multiple revenue streams and cost competitive operationsenabled us to progress all the growth initiatives, despite the tough operating environment insome of the business.

The Company has, over the last few years, aggressively grown all its business with aninvestment of about Rs.2000 cores, providing economies of scale and strengthening

competitiveness in all the businesses. Simultaneously, we are focusing on building rawmaterial and fuel security, as power is one of the key inputs in most of our businesses. We planto operationalise our lignite mines in Rajasthan in a couple of years and are set to commissiona 55 MW new coal based captive power plant at Bharuch soon.

The company is accelerating the growth of its newer businesses i.e. Hariyali Kisaan Bazaar -which is setting up Rural Business Centers all across India, Fenesta - the UPVC windowsystems and Shriram Bioseeds - the Hybrid seeds venture. These businesses will deliversuperior shareholder value in the years to come.

Hariyali has already set up over 175 outlets and plan to reach about 300 outlets by March 09.

Fenesta, which was focusing so far on institutional segment has now entered into the retailsegment also in a major way. In hybrid seed business, we have completed the purchase ofentire stake of our JV partner. The business is set to launch new generation products andrecord quantum growth in next couple of years.

Our people have been our most enduring strength. We are committed to further improve theircompetencies and creating a vibrant environment that promotes learning, innovation,entrepreneurial spirit and overall growth of the company and the employees.

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We view highest standard of Corporate Governance, a value to be institutionalized into the

corporate culture. The primary objective is to create and adhere to a corporate culture oftransparency, fairness, accountability and ethical practices, thereby creating superior value forall stakeholders.

There is a strong element of Corporate Social Responsibility embedded into the value systemof our Company. We have implemented best Environment, Health and Safety practices toensure safe and environment friendly operations.

We are committed to make a sustainable difference to the society we serve, and have taken upvarious initiatives to develop the societies around all our business areas.

We would like to take this opportunity to thank all our employees, vendors, suppliers, businessassociates, lenders and shareholders who have always supported our progress across variedbusinesses. With their cooperation, we are confident of delivering superior value to allstakeholders.

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Shri Ajay S. ShriramChairman & Senior Managing Director

Shri Vikram S. ShriramVice Chairman & Managing DirectorShri Rajiv SinhaDy. Managing DirectorShri Ajit S. ShriramDirector (Sugar)Dr. N.J. SinghWhole Time Director (EHS)

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Dr. S.S. BaijalShri Arun Bharat RamShri Pradeep DinodiaShri Vimal BhandariShri Sunil Kant Munjal

Shri D. SenguptaShri S.C. BhargavaLIC Nominee

Company Secretary Shri B.L. Sachdeva

Audit Committee Dr. S.S. BaijalChairman

Shri Arun Bharat RamShri Pradeep DinodiaShri D. Sengupta

Brief Profile of Directors of the Company

Shri Ajay S. Shriram, Chairman & Senior Managing Director, is a Director of the Companysince 24.7.1989. He graduated in Commerce from Sydenham College, University of Mumbaiand later attended the Programme for Management Development at the Harvard BusinessSchool, U.S.A. He is a Member of the Shareholders/Investors Grievance Committee of theCompany.

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Shri Vikram S. Shriram, Vice Chairman & Managing Director, is a Director of the Companysince 22.5.1990. He graduated in Commerce with Honours from St. Xaviers College, Calcuttaand is a Member of The Institute of Chartered Accountants of India. He is a Member of theShareholders/Investors Grievance Committee of the Company.

Shri Rajiv Sinha, Deputy Managing Director, joined the Company in 1972 as a ManagementTrainee after graduating from IIT, Kanpur in Mechanical Engineering. Later, he attended theExecutive Development Programme at the Stanford University, U.S.A.

Shri Ajit S. Shriram, Director (Sugar), joined the Company in 1991 as an Executive aftergraduating in Commerce from Osmania University, Hyderabad. Later, he obtained an M.B.A.Degree from the International Institute for Management Development, Switzerland.

Dr. N.J. Singh, Whole Time Director (EHS), joined the Company in 1983 as Pollution ControlEngineer. He holds M.Sc., Ph.D. Degrees and has been working as Chief Executive, ShriramEnvironment & Allied Service and General Manager (Safety and Environment) with the

Company at Kota.

Dr. S.S. Baijal is a Non-Executive Director of the Company since 22.5.1990. He retired asthe Chairman of ICI Companies in India in 1987. He holds B.Sc., M.Sc., D. Phil Degrees. He isChairman of the Board Audit Committee and a Member of the Shareholders/InvestorsGrievance Committee of the Company.

Shri Arun Bharat Ram is a Non-Executive Director of the Company since 22.5.1990. He isChairman and Managing Director of SRF Ltd. He graduated in Industrial Engineering from theUniversity of Michigan, U.S.A. He is a Member of the Board Audit Committee of the Company.

Shri Pradeep Dinodia is a Non-Executive Director of the Company since 18.7.1994. Hegraduated in Economics with Honours from St. Stephens College, Delhi University andobtained his Law Degree from the same University. He is a member of The Institute ofChartered Accountants of India. He is Chairman of the Shareholders/InvestorsGrievance Committee and a Member of the Board Audit Committee of the Company.

Shri Vimal Bhandari is a Non-Executive Director of the Company since 13.5.2003. He

graduated in Commerce from ydenham College, University of Mumbai and is a Member of TheInstitute of Chartered Accountants of India. He s currently serving as Country Head India forAEGON N.V.

Shri Sunil Kant Munjal is a Non-Executive Director of the Company since 13.5.2003. He isManaging Director of ero Cycles Limited and Chairman cum Managing Director of HeroManagement Service Limited and Chairman of ero Corporate Service Limited. He is aCommerce Graduate from Delhi University and has training in Mechanical Engineering.

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Shri D. Sengupta is a Non-Executive Director of the Company since 11.8.2003. He retiredas Chairman of General nsurance Corporation of India in June, 2002. He is a Bachelor ofScience in Physics and holds Post Graduate diploma in Marketing from FMS, Delhi University.He is a Member of the Board Audit Committee of the Company.

Shri S.C. Bhargava, a nominee of Life Insurance Corporation of India (LIC), is a Non-Executive Director of the company since 11.8.2004. He retired as Executive Director(Investment) of LIC in July, 2005. He is a Commerce Graduate from University of Mumbai anda Member of The Institute of Chartered Accountants of India.

Senior Executive TeamThe Company is organized into strategic business units managed by professional managers.The DSCL management team has a strong, credible image in the industry. The key membersof the DSCL group Executive Team are listed below:

Mr. Ajay S. ShriramChairman & Senior Managing Director

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Mr. Vikram S. ShriramVice Chairman & Managing DirectorMr. Rajiv SinhaDy. Managing DirectorMr. Ajit S. Shriram

Director (Sugar Business)Dr. N.J. SinghWhole Time Director (EHS)Mr. S.D. OmcharyChief Executive Director (Textiles & Real Estate Development)Mr. S.K. AgrawalSenior Executive Director - Chemicals BusinessMr. K.K. KaulExecutive Director & Resident Head - KotaMr. S. RadhakrishnaExecutive Director - Sugar Business

Dr. G.C. Datta RoyChief Executive - Energy BusinessMr. A.K. AwasthiChief Executive - Hydro PowerMr. Sovan ChakrabartyPresident & Business Head - Agri InputsMr. Rajesh GuptaPresident & Business Head - HariyaliMr. J.K. JainSenior Vice President & CFOMr. Rajat Mukerjei

Senior Vice President and SBU Head - PlasticsMr. Sandeep MathurSenior Vice President & Business Head Fenesta Building Systems

Mr. Sushil BavejaHead - Corporate HRDr. Gautam Mukhopadhyay

Vice President & Business Head - Shriram PolyTechMr. B.L. SachdevaCompany Secretary

SubsidiariesDr. Sharad SharmaPresident - Shriram Bioseed Genetics India Ltd.

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Dr. Paresh VermaResearch Director - Bioseed Research India Pvt. Ltd.Mr. Rajeev V. NayakGeneral Manager - Bioseed Research Philippines Inc.Mr. Sambit Satapathy

Country Head - Bioseed Vietnam Ltd.

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Value + Business

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Value + BusinessApproach:

Value creation throughMultiple & integratedChloro - VinylBusinesses

Mapping theagriopportunity

In India:Agri-inputs, outputsAnd services

Creating newBusinesses:

Enhancing long term


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DSCLs core values and beliefs are a reflection of its commitment to build a world class,learning organization, to excel and win in all its endeavours:

Customer Focus Be sensitive to the needs of the customer; develop superior customer insight

Commitment to surpass expectations and deliver superior value

Innovation and Excellence

Think differently and promote creativity Make continuous improvement a way of life; drive excellence

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People Development

Continuously improve and upgrade the skills and competencies of our people Support people to realise their potential

Team work

Work closely as a cohesive, well-knit team Inculcate a spirit of openness and collaboration

Relationships and Human Dignity

Value people and partnerships Nurture understanding, compassion, trust and respect in all relationships

Social Responsibility and Ethics

Be a socially responsible corporate, addressing the needs of the community andenvironment Conduct business ethically

Maintain highest standards of personal integrity

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Output Sugar

Inputs Manufactured Urea

Hybrid Seeds Pesticides

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Mapping theagriopportunity

In India:Agri-inputs,

outputs

And services

WorkingTowards

Improvingfarmer

Profitability Supported by

Over 400Agronomists


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Merchandized SSP/ Soluble fertilizers /

Micro nutrients

Value added Hariyali Kisaan Bazaar:

Rural retailing Agri-inputs Agronomy services Fuel Consumer Products Automotive Credit Contract farming Insurance

Chlor Alkali PVC Resin and

Compounds Calcium carbide

Cement Waste utilization

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Enhancing long term

Value + BusinessApproach:

Value creation throughMultiple & integrated

Chloro - VinylBusinesses

HighlyIntegratedOperations


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Fenesta windows Value added

MANUFACTURING FACILITIES KOTA

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Enhancing long term


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790 acre complex at Kota, Rajasthan

MANUFACTURING FACILITIES KOTA

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Highly integrated operations Key product capacities:

Urea: 3,79,000 TPA Chlor- Alkali: 1,13,750 TPA SBP: 9900 TPA Calcium carbide: 108,500 TPA PVC Resin: 70,000 TPA Compounding: 23,400 TPA Cement: 4,00,000 TPA Fenesta windows: extrusion plant Captive power 133 MW

133 MW power generation facility coal based

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MANUFACTURING FACILITIES SUGAR

Location - Central U.P.

Current operation 4 mills

Creating an inter-factory grid withlarge command area

Capacity Sugar Power

Present 33,000 TCD 70.5 MW

Post Expansion -- 94.5 MW

DSCL Sugar plant Ajbapur

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One-stop shop for meeting farmingand family needs of the ruralPopulation

Product offerings: Agri-inputs Agronomy services Consumer goods Fuel & LPG

Financial Services Output procurement and trading

160 outlets as of Mar08 to beExpanded to 250-300 by FY09

Geographical presence across northernIndia, being expanded to southern andCentral India

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UPVC based windows and doorSystems

Features Superior thermal and sound insulation Durability Design

State of the art extrusion facility atKota, and five fabrication shops

End to end service

Order Book of over 2 lac windows

Strong Brand Equity

Pan India marketing presence

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Integrated operations

Operating synergies Cross-flow of competencies/Resources Leveraging deep ruralKnowledge

Market positioning

Strong brand Trusted & long termcustomerRelationships Extensive distributionnetwork

Organization &Processes

Enabling SBU structure Best in class IT infrastructure Sound CorporateGovernance Conservative accountingpractices

Operating advantages

Cost competitiveness Robust Agri portfolio Business risk hedge Timing growth initiativeswith businessCycles Significant position inSugar/ Chlor

Alkali

Financial position

FY2008 PAT Rs. 673 cr(includingExceptional items net of taxRs. 664crore)

Book value Rs 69.27 (F.Vof Rs. 2) LT Debt: Net Worth 0.86 Consistent rowth


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BUSINESS MIX FY2008

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REVENUES

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Revenue growth 7.7 x over 17 years at a CAGR of 13% Accelerated growth momentum over last few years Reduction in FY 08 is on account of decline in trading of Bulk Fertilizers

PROFIT BEFORE DEPRECIATION

INTEREST AND TAXES

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PBDIT growth 10 x over 17 years at a CAGR of 16% Big drop in Sugar prices led to reduction in PBDIT after sustained growth

Results Announcement

DSCLs Q3 FY2009: Net Revenues up 37%; EBITDA up 49%

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Agri related businesses led by Sugar and Agri Inputs Trading registered

substantial growth

48 MW Coal based captive power plant at Bharuch and additional 24 MW power Co

gen capacity at Sugar mills added to operating profits

Sale of surplus Power from Kota complex provides swing capabilities to Chloro-

Vinyl operations

New Delhi, January 29, 2009

DSCL, an integrated and diversified group, with extensive and growing presence across the

entire Agri-rural value chain and Chloro-Vinyl industry, today announced its financial results for

the quarter and nine months ended 31 December 2008.

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The urea business registered nominal rise in revenues compared to the corresponding periodLast year driven by higher feed stock prices, despite lower volumes.

Volumes were lower on account of lower production in Q3 FY2009. However, the Companyhad produced higher quantity of urea in the first two quarters and thus will achieve its

Permitted capacity of producing 379,000 MT by the end of FY09.

PBIT for the quarter was lower due to lower volumes and lower energy efficiencies.

Company used only Naphtha as feedstock due to unavailability of LNG.

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Revenues in this business increased substantially by 85.3% to Rs. 222 Crore in Q3 FY2009compared to Rs. 120 Crore in Q3 FY2008.

The PBIT for the quarter was at Rs. 37.6 Crore compared to Rs. 3.3 Crore in thecorresponding quarter last year.

The improved performance in sugar business was on account of positive changes inoperatingenvironment, wherein the realisation have improved substantially in view of anticipatedlower production in the current sugar season.

The commissioning of the Companys Co-gen power capacity plant expansion to 94.5 MWwith an exportable surplus of 51.5 MW is complete. This along with carbon credits haveadded to the profitability of this business.

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In Q3 FY2009 revenues from traded products were at Rs. 103.8 Crore compared to Rs. 55.2Crore in Q3 FY2008.

The company reported an improvement in profitability on account of higher volumes andmargins from various value-added products in its portfolio like Single Super Phosphate,Seeds, Pesticides and Soluble Fertilizers.

The reorganization of the Agri Input portfolio enabled the Company report significantlybetter earnings from this business, while also limiting the level of working capital required torun this operation.

This business provides the Company with an excellent opportunity to offer the farmers abasket of products that increase the reach, penetration and acceptance.

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This business segment with its unique business model has evolved as a Rural Business

Centre, symbolizing trust, reliability and respect among the rural community.

Investments in this business continue by adding new outlets in rural regions across India. Thenegative earnings registered during the quarter under review are in line with the plan as thecurrent focus remains on growth, both, in terms of operations and revenues.

Revenues from this business segment almost doubled to Rs. 150.2 Crore due to the additionof new outlets, increased sales from existing outlets and enlarged range of products.

During the quarter the Company added 35 outlets and the total number of outlets stood at245. Of these 80 are centres and 165 are stores.

Hariyali Kisaan Bazaar has presence across eight states in India.

Going forward the Company plans to expand this business to ~ 300 outlets by FY2009.

Hariyali is a well concentrated business and is expected to be the key future growth andvalue driver for the Company.

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CHLORO-VINYL BUSINESSES

The Company at its Bharuch facility expanded capacities from 200 TPD to 360 TPD inQ1 FY2009 and commissioning the 48MW Coal based power plant in replacement ofFurnace Oil based power plant in Q2 FY2009, led to higher volumes and cost efficienciesat Bharuch.

Sale of Power from Kota operations has added to the swing capability of the Company.

Expansion of Chlor-Alkali Capacity to 440 TPD at Bharuch is expected to be completedby Q4 FY2009.

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Revenues from this business were nominally higher by 4.4% in the quarter under review.However, earnings from this business were affected due to higher input costs and lowerrealizations.

The Cement business is limited in size since its capacity is limited to the waste generatedfrom carbide plant.

The Company markets its Cement under the Shriram brand which commands a premium inthe market place due to its superior quality.

Others

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DSCLs other operations, reported as others in the financial results, include its value-addedbusinesses of Polymer Compounding, Fenesta Building Systems along with Textiles.Revenues under others registered a 23.7 % growth at Rs. 60.6 Crore in Q3 FY2009compared

to Rs. 49 Crore in Q3 FY2008. For 9M FY2009 revenue under others was up 39.5% at Rs.190.7 Crore from Rs. 136.7 Crore in 9M FY2008.

Fenesta Building Systems

Order book of Fenesta Building Systems stood at 1,50,775 windows as on 31st December,2008 which includes 34,217 windows booked during Q3 FY209. Revenues were higher by36.5% in Q3 FY2009 compared to Q3 FY2008 and increased by 53.6 % for 9M FY2009compared to 9M FY2008.

Over the last three quarters the Company redefined its strategic focus on retail segmentwhich has partially helped to mitigate the slowdown faced by the Real estate segment.

The retail segment demonstrated good demand for the product which resulted in betterrevenues and profitability.

The Company has established a distribution and an implementation infrastructure to enable itservice the customer through 5 Fabshops and a 61 dealer network spread across India.

Going forward, the Company feels that its first mover advantage, technology superiority,superior designs, consistent growth and acceptability and good revenue momentum will

enable this business to be a significant value driver for DSCL.

Balance Sheet as at March 31, 2008

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Profit and Loss Account for the year ended March 31, 2008

Cash Flow Statement for the year ended March 31, 2008

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Schedules to the Accounts

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What is cement?

Ans. Cement is an organic material which gives strength by mixing with water and sand.

KINDS OF CEMENT

1. *OPC Ordinary Portland cement.2. Oil well cement Sulphade resistant cement.

3. PSC Portland slag cement.4. *PPC Portland pozzolana cement.5. *White cement

VARITIES OF OPC CEMENT

Depending upon the strength of cement government has diversified OPC into 3 categories:-

1. OPC 53 GRADE (530kg/cm) strength.2. OPC 43 GRADE (430kg/cm) strength.3. OPC 33 GRADE (330kg/cm) strength.

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Cement is manufactured by combining a homogenous blend of carefully proportioned rawmaterials (chalk and clay/shale) at a very high temperature (1400 C) in a rotary kiln.

The raw materials fuse together to form clinker, a hard granular material. Clinker is ground toa powder along with gypsum to make cement.

By altering the chemistry of the raw material and selecting specific materials for grindingalongside the clinker and gypsum, different types of cement can be made with propertiessuited to their intended use.

Portland cement - composition andmanufacture

Any cement grade limestone contains following composition:-

Calcium oxide 47(+/-2%)Silica 12 (+/-0.5%)Iron 3 - 5%Alumina 3 5%Magnesia 2- 4%

Coal 16 18% (other additive)

Portland cement is prepared by heating a precisely specified and carefully blended mixture of

raw materials, one of which is mainly composed of calcium carbonate and the other ofaluminium silicates. The raw mix is passed through a rotary kiln, where its temperature israised to the point of incipient fusion, to form a clinker, a hard, nodular material composedprincipally of the above compounds. Finished cement is produced by grinding the clinker in aball mill, together with a small amount of calcium sulfate, which is added to control the setting.Suitable raw materials are chalk and clay; hard limestone and shales may also be used. Sand,waste bauxite and iron oxide may also be used in small amounts to adjust the composition ofthe raw mix.In the hottest part of the kiln, known as the "burning zone", the material temperature reaches1200 - 1400oC. A degree of melting is achieved, sufficient to cause the material to cohere intosmall balls or lumps of clinker. Between 20% and 30% of the material is normally molten at this

temperature. The liquid is composed principally of alumina and iron oxide, which act as fluxesin the formation of the calcium silicates. The product after cooling, consists essentially ofcrystals of C3S and C2S embedded in a matrix of interstitial material containing the aluminateand ferrite phases.

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If clincker is ground to a fine powder and mixed with water it becomes harder thereforeduring grinding of clincker into cement they mix the following

Clincker 95-96% + 5-7% gypsum = OPC cement

Clincker 80-85% + 5-7% gypsum + 20 -25% Power plant fly ash (permissible by govt) =PPC cement

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CEMENT SALES INCREASE BY 7.9 PER

CENT IN MAY

Mumbai: Cement sales have grown 7.9% as an increased focus on infrastructure projects haspushed up demand for the building material in the worlds second-largest cement market afterChina.

According to the Cement Manufacturers Association, industry sales grew to 167.67 milliontonne, from 155.26 mt in the previous year. The growth has come from all players includinglarge and small.

Cement sales of Aditya Birla group, the largest cement player in the country, rose 0.8% in Mayto 2.66 mt while its production grew 2.5% to 2.70 mt in May. The Birlas cement productioncomes from flagship Grasim Industries and UltraTech Cement, with a combined capacity ofmore than 31 mt.

The other large firm, ACC, which is owned 41% by Swiss cement major Holcim, said itsJanuary-March sales rose 7.1% to 5.29 mt. The company which has a strong presence in thelarge markets of northern and eastern India, said its April production totalled 1.77 mt whilesales in the same month was 1.74 mt.

ACC has the capacity to make 22.4 mt of cement a year. According to AL Kapur, managingdirector of Ambuja Cements, The industry has added 25 mt of new capacity leading to theincrease in sales.

This also indicates that cement demand is increasing on the back of housing and infrastructuregrowth. Shree Cements, a mid-sized cement company, said its May sales grew 20.3% at 5.56lakh tonne.

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CEMENT PRODUCTION TO INCREASE BY

11.5 PER CENT IN FY 2009

New Delhi: Cement production is projected to increase by 11.5 per cent in FY 2009, followingfresh capacity additions, according to a monthly review by the Centre for Monitoring IndianEconomy (CMIE). The review further stated that cement consumption growth would continueto remain at 12 per cent in FY 2009.

In FY 2008, cement production grew by a respectable 8.1 per cent to 168.3 million tonnes.Simultaneously, bolstered by a high demand, consumption grew by a quicker 10.1 per cent inFY 2008.

However, in May, prices in the northern region came down even though prices remainedsteady in the southern region. Delhi saw prices fall by Rs 2 to Rs 229 per 50 kg bag, and inRajasthan, prices fell by a further Rs 2-4 per 50 kg bag. Prices remained the same in thesouthern cities of Hyderabad and Bangalore. On the other hand, in Mumbai, Chennai andKolkata saw a hike in cement prices during the same period.

Comparatively, prices in Mumbai went up by Rs 19 from Rs 234 per 50 kg bag in May 2007,against Rs 253 per 50 kg bag in May 2008.

Falling prices in the northern region have been ascribed to the frantic steps taken by theGovernment to bring down cement prices. According to CMIE, the reduced prices were due tothe growth in fresh supplies in the region. About 15 million tones additional capacity wasbrought in the northern region, which accounted for a considerable 68 per cent of the entireincremental capacity, said CMIE.

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CEMENT COS SEE STRONG GROWTH IN

SOUTH, WEST

Mumbai: A clear pattern is evident in the results declared by the cement majors. Cementcompanies with a strong focus on the southern and western markets are on a strong footing,and therefore, qualify as good investment bets, say analysts.

India Cement, Madras Cements and ACC have been present in both the southern and westernmarkets and witnessed strong price realisations in the September quarter. The demandsituation has been strong in the southern region due to infrastructure projects sponsored bythe government, while retail demand continues to remain robust in the western region.

In contrast, the y-o-y realisations declined in the northern and central markets in Q2 FY09 dueto sluggish demand from the housing sector and cement supplies from the neighbouringcountries.UltraTech Cement, which is focussed on southern (about 23% of the totaldespatches), western (52% of despatches) and eastern (25% of despatches) India, grew its y-o-y realisations in the September quarter in a bid to partially offset the rising costs of inputssuch as imported coal. In contrast, JK Lakshmi which is largely focussed on the northern andcentral markets, saw a decline in its net cement realisations in Q2 FY09.

UltraTech Cement reported combined cement and clinker sales of 3.98 million tonnes in theSeptember quarter, amounting to a y-o-y growth of 13%. In the domestic market alone, thecompanys cement sales stood at 3.23 million tonnes, a y-o-y rise of 3%, and net realisationswere Rs 3468 a tonne, a rise of 7% on a yearly basis. The blended realisations (cement andclinker) also rose 3.9% y-o-y to Rs 3507 a tonne.

Nevertheless, the company has only been able to partially offset the high input costs throughprice realisations as its operating profit margins declined 660 basis points y-o-y to 22.4% in theSeptember 2008 quarter.

Meanwhile, Ultratech has started production of clinker at Andhra Pradesh and cement from itsgrinding unit in Karnataka. The company's total capacity will increase to 23.1 million tonnes bythe end of CY08.

"The south-based players such as India Cements and Madras Cements derive anoverwhelming majority of sales in the southern markets, while ACC makes nearly 19% of itssales in the southern markets and 13-14% in the western markets", according to an analyst

with a Mumbai-based brokerage firm.

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Mr. Mahesh Kumar: vice president & head-cement marketing gave me an interview and

brief me about DSCL. First of all he gave an overview of DSCL, when did it started and formwhich year they start the production of cement. He also gave me information relating todemand growth of Sriram cement which is as follows:

DEMAND GROWTH (fig in million tones)

YEAR DEMAND CAPACITY PRODUCTION2004-2005 123 151 128

2005-2006 136 158 142

2006-2007 149 166 155

2007-2008 164 179 168

2008-2009 178 205 181

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1. www.dscl.com2. www.ibef.org3. www.economictimes.indiatimes.com4. www.google.com

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Q.1 Which brand will you prefer first?

Ambuja

Sriram

ACC

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Birla

UltraTech

JK Cement

Q.2 Are you satisfied with the strength of Sriram cement?

Very Satisfied Very Dissatisfied

Neutral

Somewhat Dissatisfied

Somewhat Satisfied

Q.3 Will you recommend Sriram cement to other people?

Definitely

Maybe

Cant say

No

Definitely not

Q.4 Are you satisfied with after sales service?

Very Satisfied

Very Dissatisfied

Neutral


Somewhat Satisfied

Q.5 Will you continue to buy Sriram cement?Definitely

Maybe

Cant say

No

Definitely not

Q.6 Have you seen any advertisement of Sriram Cement?

Yes

No

Q.7 Are you satisfied with the price?

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Very Satisfied

Very Dissatisfied

Neutral


Somewhat Satisfied

Q.8 Does the company gives additional benefits to customers?

Yes

No

Q.9 Sriram cement uses a good supply chain, is it easily available to you?

Yes

No

Q.10 Are you aware of other Sriram products?

Yes No

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Q.1 Which brand will you prefer first?

Ambuja

%24

Sriram

%24JK Cement

%14

Birla

%8

UltraTech

%10

ACC

%20 Ambuja

Sriram

JK Cement

Birla

UltraTech

ACC

Q.2 Are you satisfied with the strength of Sriram cement?

%70

%20

%10 %0%0

Very Satisfied

Somewhat

Satisfied

Neutral

Somewhat

Dissatisfied

Very Dissatisfied

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Q.5 Will you continue to buy Sriram cement?

%70

%4

%1 0

%6

%1 0

Definitely

Definitely not

Cant say

No

Maybe

Q.6 Have you seen any advertisement of Sriram Cement?

20

30

0

5

1 0

1 5

20

25

30

20 30

Yes No

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Q.7 Are you satisfied with the price?

5

7

8

1 2

1 8

0

2

4

6

8

1 0

1 2

1 4

1 6

1 8

Very Satisfied

Somewhat Satisfied

Neutral

Somewhat

Dissatisfied

Very Dissatisfied

Q.8 Does the company gives additional benefits to customers?

%30

%70

Yes

No

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Q.9 Sriram cement uses a good supply chain, is it easily available to you?

4 0

1 0

%0

%2 0

%4 0

%6 0

%80

%1 00

No

Yes

No 1 0

Yes 40

Q.10 Are you aware of other Sriram products?

Yes

%60

No

%40Yes

No

DATA ANALYSIS

The data collected by way of questionnaires is a depiction of the customerssatisfaction with the Sriram cement.The questionnaire was directed towards 50 customers, which is a very small samplesize.Hence the findings may not depict the clear picture of the data analysis.

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Majority of people are aware of Sriram brand. But still they prefer Ambuja first.

70% of the customers are happy with product strength.

Those who are using this product are happy and are ready to prefer other people

60% of the customers are happy with the after sales service, but rest are not very satisfiedbecause many people live in a village where it becomes difficult of an executive to find

address as everybody knows in village there no house no.

Majority of customers are ready to buy in future even if the price is high. But some are littlebit confused as there are many brands available in the market and each one says its betterthen another.

70% of the people say they havent seen any advertisement on television. 30% says theyhave seen.

Sriram is one of the expensive cement comparing to other, this is what makes customersvery dissatisfied in terms of price.

Customers buying in bulk say that they are not being provided any kind of additionalbenefits from company. For example pens, small paper pads, water bottle etc.

80% of the customers say that in terms of price there is no compromise and service is alsogood. But sometimes when company goes for maintenance then it becomes difficult to getSriram cement.

Like Sriram cement, its other products are also expensive and customers knows it.

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1. The rise in the price of cement is because of the gap of demand & supply in the market. Thedemand for cement is much higher than its actual supply. But with the productionmaximization, which can be encountered in next few years, this gap may narrow down, thatmay ensure the market to be in equilibrium.

2. Decreasing per capita consumption doesnt affect the total consumption for the cement. Itmeans the infrastructure; contacted housing is using the bulk of the production.

3. In spite of High price of the product, the hick of demand because of the increasing rate ofinfrastructural development.

4. Domestic price of cement is rising as well as the imported cement price is lowering. Soaltogether the supply of the cement, which is affordable, will increase. This may in decreasethe gap between supply and demand.

5. Major Demand was from the housing sector, which may shift to infrastructure as lots ofinfrastructural development processes has already being taken up & due to the increasedprice, housing segment started showing a slowdown.

DSCL sriram2

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