MIRA INFORM REPORT

Report Date :

21.03.2011

IDENTIFICATION DETAILS

Name :	STERLITE INDUSTRIES (INDIA) LIMITED
Registered Office :	SIPCOT Industrial Complex, Madurai By Pass Road, T V Puram P.O., Tuticorin-628002, Tamilnadu
Country :	India
Financials (as on) :	31.03.2010
Date of Incorporation :	08.09.1975
Com. Reg. No.:	18-62634
CIN No.: [Company Identification No.]	L65990TN1975PLC062634
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36821B MUMS22522D
PAN No.: [Permanent Account No.]	AABCS4955Q
Legal Form :	Public limited liability company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of Telephone Cables, Copper Rods and Aluminium Rolled Products.

RATING & COMMENTS

MIRA’s Rating :

A (58)

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 890723000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. 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/Manufacturing :	SIPCOT Industrial Complex, Madurai By Pass Road, T V Puram P.O., Tuticorin -628 002, Tamilnadu, India
Tel. No.:	91-461-6612591 to 600
Fax No.:	91-461-2340203 / 2340036
E-Mail :	sclof@giaspn01.vsnl.net.in s.varadharajan@vedanta.co.in comp.sect@vedanta.co.in
Website :	http://www.sterlite.com
Head Office :	B-10/4, Waluj MIDC Industrial Area, Waluj, District Aurangabad-431133, Maharashtra, India
Tel. No.:	91-240-2554583/2554589
Fax No.:	91-240-2554690
E-Mail :	sclof@giaspn01.vsnl.net.in s.varadharajan@vedanta.co.in
Secretarial Department :	Solitaire Corporate Park, Business Square Centre, C Wing, 2^nd Floor, Andheri Kulra Road, Chakala, Andheri (East), Mumbai-400093
Tel. No.:	91-22-66434500
Fax No.:	91-22-66434551
E-Mail :	comp.sect@vedanta.co.in
Branches :	904-905, Tolstoy House, Tolstoy Marg, New Delhi – 110 001
Tel. No.:	91-11-23736941/23351393
Fax No.:	91-11-23355768/23736988
Factory :	Sterlite Optical Fibres Unit: E-2, MIDC Industrial Area, Waluj, Dist - Aurangabad – 431 136, Maharashtra, India
Tel. No.:	91-240-2564599/2554079
Fax No.:	91-240-2564598/2564066
Email:	sclof@giaspn01.vsnl.net.in
Factory 2:	Sterlite Telecom Cables Unit: Survey No. 209, Piparia Industrial Estate, Silvassa, (Dadra Nagar and Haveli), Union Territory
Tel. No.:	91-2638-241108/241113
Fax No.:	91-2638-240394
Factory 3:	Sterlite Aluminium Foils Unit: Aluminium Foils and Sheets Division Gate Nos. 924-927, Sanaswadi, Tal. Shirur, Dist. Pune – 412 208, Maharashtra
Tel. No.:	91-2137-252308/252309/252438/252439
Fax No.:	91-2137-252407
Email:	sterlite@pn2.vsnl.net.in
Factory 4:	Jelly Filled Cables: Unit I : B-10/4, Waluj MIDC Industrial Area, Waluj, Dist. Aurangabad – 413 133, Maharashtra Unit II : Survey No. 209, Piparia Industrial Estate, Phase II, Silvassa – 396 230, Dadra and Nagar Haveli (Union Territory)
Factory 5:	Optical Fibre: E-1, MIDC Industrial Area, Waluj, Dist - Aurangabad – 431 136, Maharashtra
Factory 6:	Continuous Cast Copper Rods: Unit I : Bombay-Pune Highway, P.O. Takwe Khurd, Taluka Maval Lonavala, Dist. Pune – 410 405, Maharashtra Unit II : Survey No. 209, Piparia Industrial Estate, Phase II, Silvassa – 396 230, Dadra and Nagar Haveli (Union Territory)
Factory 7:	Copper Cathodes (Smelter): Zone A and B, Sipcot Industrial complex, Tuticorin – 628 002, Tamil Nadu
Factory 8:	Copper Cathodes (Refinery): Plot No. 1/1/2, Village Chinchpada, Silvassa – 396 230, Dadra and Nagar Haveli (Union Territory)
Tel. No.:	91-260-2699051 (5 lines)
Fax No.:	91-260-2699050
Factory 9:	Power Transmission Line Aluminium Conductor: Karanjawane, Taluka Velhe, Dist. Pune – 412 305, Maharashtra
Factory 10:	Power Transmission Line Aluminium Conductor: Rakholi, Madhuban Dam Road, Silvassa – 396 230, Dadra and Nagar Haveli (Union Territory) 7, Kirol, Vidyavihar, Mumbai-400086, Maharashtra, India SIPCOT Industrial Complex, Madurai Bypass Road, T.V. Puram P.O., Tuticorin-628002, Tamilnadu, India
Corporate Office 1:	Dhanraj Mahal, 5^th Floor, C.S.M. Road, Appollo Bunder, Colaba, Mumbai – 400 039, Maharashtra, India
Tel. No.:	91-22-22855551/22854406
Fax No.:	91-22-22836474
E-Mail :	siilho@bom3.vsnl.net.in
Corporate Office 2:	92, Maker Chamber III, Nariman Point, Mumbai – 400 021, Maharashtra, India
Tel. No.:	91-22-22835261/22835316/22844864
Fax No.:	91-22-22845015
E-Mail :	siilnfd@giasbm01.vsnl.net.in
Corporate Office 3:	Vedanta, 75 Nehru Road, Vile Parle (East), Mumbai-400099, Maharashtra, India
Regional Offices :	Located At: New Delhi Bangalore Kolkata Mumbai
Overseas Office :	Shenzhen Representative Office, Rm.2305 Wenshen Center, Wenjin Plaza, No.1010 North Wenjin Road. Luohu Distric, Shenzhen, Guangdong, China.
Tel. No.:	86-755-25609246
Mobile No.:	0086-13798511608
Fax No.:	86-755-25609246
E-Mail :	jack.liu@vedanta.co.in

DIRECTORS

As on 31.03.2010

Name :	Mr. Anil Agarwal
Designation :	Chairman
Name :	Mr. Navin Agarwal
Designation :	Executive Vice-Chairman
Name :	Mr. Gautam Doshi
Designation :	Director
Name :	Mr. Berjis Desai
Designation :	Director
Name :	Mr. Sandeep Junnarkar
Designation :	Director
Name :	Mr. D.D. Jalan
Designation :	Whole Time Director

KEY EXECUTIVES

Name :	Mr. Rajiv Choubey
Designation :	Company Secretary
E-Mail :	rajiv.choubey@vedanta.co.in
Name :	Mr. R. Kishore Kumar
Designation :	Chief Executive Officer (Copper and Zinc Business)
E-Mail :	kishore.kumar@vedanta.co.in
Name :	Mr. Ramesh Nair
Designation :	Chief Operating Officer
E-Mail :	ramesh.nair@vedanta.co.in
Name :	Mr. Vinod Bhandawat
Designation :	Chief Financial Officer
E-Mail :	vinod.bhandawat@vedanta.co.in
Name :	Mr. Puneet Jagatramka
Designation :	Chief Marketing Officer
E-Mail :	puneet.jagatramka@vedanta.co.in
Name :	Mr. Prasad Surya Rao
Designation :	Vice President (Operations)
E-Mail :	prasad.suryarao@vedanta.co.in
Name :	Mr. Suresh Bose
Designation :	Head – Human Resources
E-Mail :	suresh.bose@vedanta.co.in
Name :	Mr. S. Varadharajan
Designation :	Head – Indirect Taxation
E-Mail :	s.varadharajan@vedanta.co.in
Name :	Mr. Vivek Savant
Designation :	Head – Commercial
E-Mail :	vivek.savant@vedanta.co.in
Name :	Mr. Vijay Murthy
Designation :	Head - Copper Concentrate Procurement
E-Mail :	vijay.murthy@vedanta.co.in

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2010

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	834,160	0.03
Bodies Corporate	102,595,768	3.51
Sub Total	103,429,928	3.54
(2) Foreign
Bodies Corporate	1,671,144,924	57.18
Sub Total	1,671,144,924	57.18
Total shareholding of Promoter and Promoter Group (A)	1,774,574,852	60.72
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	105,104,030	3.60
Financial Institutions / Banks	5,678,008	0.19
Central Government / State Government(s)	2,800	-
Insurance Companies	167,283,734	5.72
Foreign Institutional Investors	450,879,442	15.43
Sub Total	728,948,014	24.94
(2) Non-Institutions
Bodies Corporate	193,215,455	6.61
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 millions	97,675,610	3.34
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	32,259,258	1.10
Any Others (Specify)	96,008,185	3.28
Non Resident Indians	5,983,857	0.20
Trusts	72,034,737	2.46
Clearing Members	5,286,822	0.18
Foreign Bodies - D R	11,915,977	0.41
Directors & their Relatives & Friends	72,000	-
Any Other	714,792	0.02
Sub Total	419,158,508	14.34
Total Public shareholding (B)	1,148,106,522	39.28
Total (A)+(B)	2,922,681,374	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	165,487,852	-
(2) Public	273,038,308	-
Sub Total	438,526,160	-
Total (A)+(B)+(C)	3,361,207,534	-

BUSINESS DETAILS

Line of Business :

Manufacturer of Telephone Cables, Copper Rods and Aluminium Rolled Products.

Products :

Product Description	ITC Code
Copper Cathode	7403.11
Continuous Cast Copper Rods	7407.10
Aluminium Conductors (AAC/ ASCR)	7614.10
Phosphoric Acid	2809

PRODUCTION STATUS (As on 31.03.2010)

Particulars	Unit	Installed Capacity	Actual Production
Continuous Cast Copper Rods*	MT	268000	196882
Copper Cathodes**	MT	405000	334174
Aluminium Cold Rolled Products	MT	20000	--
Phosphoric Acid	MT	230000	1036353
Sulphuric Acid***	MT	1300000	205884

Note:

• * Net of Nil MT (Previous year 6 MT) loss of material.
• ** (i) Includes 197774 MT (Previous year 220783) used for captive consumption, (ii) Net of 28 MT loss of material.
• *** Includes 560628 MT (Previous year 459510 MT) used for captive consumption.

GENERAL INFORMATION

Suppliers :

• Vedant Resources Plc
• Copper Mines of Tasmania Pty Limited
• Bharat Aluminium Company Limited
• Konkola Copper Mines Plc

Bankers :

• ABN Amro Bank
• Australia and New Zealand Banking Group Limited
• DBS Bank Limited
• JP Morgan Chase Bank
• Credit Lyonnais
• Credit Agricole Indosuez
• HDFC Bank Limited
• ICICI Bank Limited
• State Bank of India
• The Bank of Nova Scotia
• Development Bank of Singapore
• Bank of Maharashtra
• Bank of India
• Central Bank of India
• Corporation Bank
• Oriental Bank of Commerce
• Standard Chartered Bank
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• Syndicate Bank
• The Hong Kong and Shanghai Banking Corporation Limited
• The ING Vysya Bank Limited
• The Karur Vysya Bank Limited
• Union Bank of India
• Citi Bank
• Calyon Bank
• IDBI Bank Limited
• Deutsche Bank

Facilities :

Secured Loan	As on 31.03.2010 (Rs. in Millions)
A)Redeemable Non Convertible Debentures	1000.000
Total	1000.000
Unsecured Loan	As on 31.03.2010 (Rs. in Millions)
A) Deferred Sales Tax Liabilities	687.600
B) 4% convertible senior note of US $ 1000 per note	22225.500
C) Loans from Banks
I) Foreign Currency Loans	902.800
II) Rupee Loan	557.500
III) Buyer’s Credit from Banks*	27848.600
Total	52222.000

Note:

1) Debentures referred at (A) above are secured by a first charge on pari passu basis in favour of the Trustees for the Debentures on the immovable properties situated at Tuticorin in the State of Tamilnadu; Lonawala and Pune in the State of Maharashtra, Chinchpada in the Union Territory of Dadra and Nagar Haveli and Mouje Chatral of Kalol Taluka, District Gandhinagar, Gujarat.

2) Working Capital Loans from Banks are secured by a first charge by way of hypothecation of Company’s present and future inventories and book debts. These loans are further secured by a second charge on all the immovable properties of the Company.

Banking Relations :	--
Auditors :
Name :	Charturvedi and Shah Chartered Accountants
Address :	Mumbai
Name :	Deloitte Haskins and Shah Chartered Accountants
Address :	Kolkata, West Bengal
Fellow Subsidiary :	Sea Goa Limited The Madras Aluminium Company Limited Konkola Copper Mines Plc Sesa Industries Limited V S Dempo and Company Private Limited w.e.f. 11 June 2009 Dempo Mining Corporation Private Limited w.e.f. 11 June 2009
Holding Companies :	Twinstar Holding Limited Vedanta Resources Holdings Limited Vedanta Resources Ptc. Volcan Investments Limited
Subsidiaries :	Bharat Aluminium Company Limited Sterlite Paper Limited Copper Mines of Tasmania Pty Limited Thalanga Copper Mines Pty Limited Monte Cello BV Sterlite Transmission Limited Sterlite Opportunities and Ventures Limited Sterlite Copper Limited Hindustan Zinc Limited Sterlite Optical Technologies Limited The Madras Aluminium Company Limited Sterlite International Limited Twinstar Holding Limited Fujairah Gold FZE Talwandi Sabo Power Limited (w.e.f. 1 September 2008) Sterlite (USA) Inc (w.e.f. 29 May 2008) Montecello BV Sterlite Energy Limited
Associates :	India Foils Limited (Till 19 November 2008) Vedanta Aluminium Limited

CAPITAL STRUCTURE

AS ON 31.03.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
925000000	Equity Shares	Rs.2/- each	Rs.1850.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
840400422	Equity Shares	Rs. 2/- each	Rs.1680.800 Millions

Note:

1) Of the above equity shares:

(a) 210,000 Equity Shares were allotted as fully paid up pursuant to a contract without payment being received in cash before buy back, extinguishment, subdivision and issue of bonus shares.

(b) 321,973,026 Equity Shares of Rs. 2 each were allotted as fully paid up Bonus Shares by way of capitalisation of General Reserve and security Premium.

(c) 2,733,675 Equity Shares were allotted pursuant to scheme of Amalgamation without payment being received in cash before buy back, extinguishment, subdivision and issue of bonus shares.

(d) 4,099,400 Equity Shares were allotted as fully paid upon conversion of 50,000 Foreign Currency Convertible Bonds before subdivision and issue of bonus shares.

(e) 12, 49, 92,080 (Previous year 7, 56, 78, 479) American Depository Shares (ADS) share, representing 12,49,92,080 (Previous year 7,56,78,479) underlying equity shares.

2) Of the above equity shares, 45,31,23,492 (Previous year 40,69,61,874) equity Shares (including ADS) are held by company’s holding company and 2,56,13,400 (Previous year 2,63,17,719) by a fellow subsidiary of the Company.

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		1680.800	1417.000	1417.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		221000.000	138981.400	130233.200
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		222680.800	140398.400	131650.200
LOAN FUNDS
1] Secured Loans		1000.000	3038.000	5720.500
2] Unsecured Loans		52222.000	35262.400	26857.600
TOTAL BORROWING		53222.000	38300.400	32578.100
DEFERRED TAX LIABILITIES		3638.100	3336.500	3623.300
TOTAL		279540.900	182035.300	167851.600
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		15608.200	16136.600	16554.900
Capital work-in-progress		2658.100	321.600	524.900
INVESTMENT		109841.700	116618.500	123570.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	19940.400	14069.000	23059.900
	Sundry Debtors	3851.100	5268.900	8318.800
	Cash & Bank Balances	22849.100	17378.400	769.800
	Other Current Assets	1137.400	349.200	0.000
	Loans & Advances	121363.200	28377.000	11479.800
Total Current Assets		169141.200	65442.500	43628.300
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	8989.100	7558.300	7873.900
	Other Current Liabilities	2059.000	2171.400
	Provisions	6660.200	6754.200	8552.900
Total Current Liabilities		17708.300	16483.900	16426.800
Net Current Assets		151432.900	48958.600	27201.500
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		279540.900	182035.300	167851.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2010	31.03.2009	31.03.2008
	SALES
		Income	131142.800	115659.900	126719.800
		Other Income	11192.600	8099.300	6023.900
		TOTAL (A)	142335.400	123759.200	132743.700
Less	EXPENSES
		Purchases of traded goods	932.200	757.000	20.800
		Manufacturing & Other Expenses	125475.900	100164.800	116822.100
		Personnel	772.800	822.800	661.800
		Selling and Distribution	919.000	956.600	785.100
		Administrative & General Expenses	1349.300	1353.200	1155.000
		Exceptional Items	2735.300	(553.100)	527.900
		Increase or decrease in stock	(3397.900)	3165.400	(1308.000)
		TOTAL (B)	128786.600	106666.700	118664.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		13548.800	17092.500	14079.000
Less	FINANCIAL EXPENSES/ INTEREST (D)		2564.400	2039.200	1644.500
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		10984.400	15053.300	12434.500
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1506.400	1661.800	1389.800
	PROFIT BEFORE TAX (E-F) (G)		9478.000	13391.500	11044.700
Less	TAX (H)		1163.000	1027.200	1528.400
	PROFIT AFTER TAX (G-H) (I)		8315.000	12364.300	9516.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		26834.100	19441.000	NA
Less	APPROPRIATIONS
		Transfer to debenture redemption reserve account	29.000	30.000	NA
		General Reserve	5000.000	2040.000	NA
		Dividend	3686.900	2901.200	NA
		Tax on Dividend	523.400	421.500	NA
	BALANCE CARRIED TO THE B/S		25909.800	26834.100	NA
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export Earnings	59210.700	45657.900	70339.700
		Management	172.300	45.300	40.000
		Other Earnings	67.100	98.500	373.900
	TOTAL EARNINGS		59450.100	45801.700	70753.600
	IMPORTS
		Raw Materials	120738.800	81488.900
		Stores & Spares	371.100	481.200
		Capital Goods	57.100	192.100
	TOTAL IMPORTS		121167.000	82162.200	NA
	Earnings Per Share (Rs.)		10.39	17.45	14.10

QUARTERLY RESULTS

PARTICULARS	30.06.2010	30.09.2010	31.12.2010
TYPE	1^st Quarter	2^nd Quarter	3^rd Quarter
Net Sales	32009.600	29067.200	43834.600
Total Expenditure	30202.600	27704.600	43564.600
PBIDT (Excl OI)	1807.000	1362.600	270.000
Other Income	5491.900	5127.000	4618.600
Operating Profit	7298.900	6489.600	4888.600
Interest	1161.800	642.700	644.700
Exceptional Items	0.000	0.000	0.000
PBDT	6137.100	5846.900	4243.900
Depreciation	380.700	382.200	381.700
Profit Before Tax	5756.400	5464.700	3862.200
Tax	1562.100	1456.000	698.400
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	4194.300	4008.700	3163.800
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	4194.300	4008.700	3163.800

KEY RATIOS

PARTICULARS		31.03.2010	31.03.2009	31.03.2008
PAT / Total Income	(%)	5.84	9.99	7.17
Net Profit Margin (PBT/Sales)	(%)	7.23	11.58	8.72
Return on Total Assets (PBT/Total Assets}	(%)	5.13	16.42	18.35
Return on Investment (ROI) (PBT/Networth)		0.04	0.10	0.08
Debt Equity Ratio (Total Liability/Networth)		0.32	0.39	0.37
Current Ratio (Current Asset/Current Liability)		9.55	3.97	2.66

LOCAL AGENCY FURTHER INFORMATION

HISTORY:

Subject, a producer of copper in India came into business track in 8th September of the year 1975 as Rainbow Investments Limited. Subject a part of Vedanta Resources a London listed metals and mining major with Aluminium, Copper and Zinc operations in India and Australia, continues to seek improvements in its business, having set benchmarks to LME grade A standards in Copper products manufacturing. The notable thing is, subject is the first private sector smelter in India and also an ISO 9001:2000, ISO 14001 and OHSAS 18001 Certified Organization. The Company's main products, Copper Cathodes and Copper Rods meet global quality benchmarks. The operations of the company are Mining, Smelting and Refining. The Company undertook the manufacture of cables, conductors and enamelled copper wires at its factories in Mumbai and Pune and the company's name was changed from Rainbow Investments Limited to Sterlite Cables Limited in 19th October of the year 1976. On 28th February of the year 1986, again the name of the Company was changed to the present name Sterlite Industries (India) Limited. The Company undertook a project to set up a continuous cost and rolled non-ferrous rods unit at Taxwe Khurd near Lonawala with the technical assistance of M/s. Continuus, SpA, Italy and M/s. La Farga Lacambra Sa, Spain. The unit was commissioned during 1989-90. In 1989, the Vision Finance and Leasing Limited was became a wholly owned subsidiary of the Company. The Company's XLPE Cable Unit and PVC insulated Power and Control cable unit were modernised with the technical assistance of Johan Royle and Sons, U.S.A and integrated backwards into the manufacture of copper rods. The Company diversified its activities in the year 1990 by undertook the manufacture of Jelly-filled telecommunication cables (JFTC) with an installed capacity of 6.25 lakh CKM. Subject had set up an additional plant for manufacture of Jelly filled cables with an installed capacity of 15 lakh CKM in the year 1992 and also set up a new plant with an annual capacity of 40,000 FKM at Aurangabad to manufacture fibre optic cables. In 1993, subject commissioned a new plant at Silvassa for manufacture of Jelly filled cables with an installed capacity of 20 lakh CKM. Commissioned a smelter in Tuticorin and a refinery in Silvassa in the year 1995. Sterlite communications limited was merged with the company in 1st April of the year 1996. The technical collaboration and technology license agreement was signed with Aluminium Pechiney (AP), France during the year1997 for the latest AP 30 technology. A plant was set up in the year 1998 as a downstream facility that would make use of the sulphuric acid produced by Sterlite's copper smelter plant. The Company and telecom multinational Alcatel had joined hands in the year of 2000 to provide telecom networking solutions in India. Pursuant to the Scheme of Arrangement, the telecommunication business of the company has been demerged into a separate company as Sterlite Optical Technologies Limited with effect from July 2001 and in the same year the subject hive off is power transmission the aluminium conductor division into a wholly owned subsidiary of the company. The Company, Indo Gulf Industries and SWIL Limited has jointly promoted the copper consumption in the country through increased use of the metal in new areas such as motors, house-wiring, electricity transformers and plumbing. In the same year 2001, subject acquired the BALCO. During the year 2002, the company Acquired Hindustan Zinc Limited and in 2003, Sterlite, Essar and Videocon have tied up the confidential memorandum to buy the governments stake in SCI. During the year 2004, the company inks deal with Escondida mine. Subject bagged National Award for Excellence in Energy Management for 2005 from the Confederation of Indian Industries (CII). In 2005, subject commissioned 300 ktpa smelter and refinery in Tuticorin. In 2006, the company completed major expansions like 1,20,000 tpa of copper smelting, 1,20,000 tpa of copper refinery and 90,000 tpa of the copper rod plant, following which its annual smelting capacity increased to 3,00,000 tonnes. The Chinchpada unit upgraded from ISO 14001:1996 to ISO 14001:2004 standards' the unit was also certified for ISO 9001: 2000 and OHSAS18001: 1999 in the same year 2006. The company successfully completed an American Depositary Share issue of $2 billion during the year 2007 and listed in New York Stock Exchange. The company currently engaged in construction of a 170,000 tpa smelter in Chanderiya and debottlenecking initiatives for 88,000 tpa capacity in Chanderiya and Debari. During the year 2007, the company received Commendation Certificate by the Confederation of Indian Industry (CII) for large business organisations for its sustainable development, 'Golden Peacock National Training Award' for the year 2007from Institute of Directors and QualTech award 2007 for Innovation category from Qimpro, Mumbai, apart from this, subject bagged numerous awards during the same year 2007. As on January 2008, Subject has received the prestigious Golden Peacock Award for Training in recognition of its employee training structure and other outstanding practices and in May 2008, the company and ASARCO LLC ('Asarco') have signed a definitive agreement for the acquisition of operating assets of Asarco for 2.6 billion dollars in cash.

Financial performance

During the year, the gross turnover of the company increased by 11.4% from Rs. 122777.400 Millions to Rs. 136764.700 Millions. The increase in turnover was primarily due to increase in the average LME prices from US$ 5,885/MT to US$ 6,112/MT and also on account of depreciation of the Indian Rupee against the US dollar.

The Earnings before interest, tax depreciation and amortization for the same period decreased by 1.5% from Rs. 16539.400 Millions to Rs. 16284.100 Millions and the Net Profit decreased by 32.75% from Rs. 12364.300 Millions to Rs.8315.000 Millions in the current year. During the year the Company provided for an exceptional item of Rs. 2735.300 Millions on account of termination of the Settlement and Purchase and Sale Agreement (PSA) with Asarco LLC.

The issue proceeds of Convertible Senior Note has been allocated to the conversion option with the residual value allocated to the Notes to establish its initial carrying cost. Subsequently, the conversion option has been measured at fair value through profit and loss with changes in fair value to be recognised in the Profit and Loss account and the Notes been carried at amortised cost. The accounting treatment of Notes has resulted into the profit net of tax for the year higher by Rs. 345.500 Millions.

Operational performance

The year was a very challenging year mainly due to rising input cost, lower by product margin. The operational performance was as follows:

Product	2009-10	2008-09	Variance
Copper Cathodes	334174 MT	312833 MT	6.8%
Copper Rods	196882 MT	219879 MT	(10.5%)
Sulphuric Acid	1036353 MT	987512 MT	4.9%
Phosphoric Acid	205844 MT	163607 MT	25.8 %

During the year the company consolidated its leadership position in domestic copper with record sales of 206,149 MT of copper with a market share of 33% in the domestic market and 42% in the refined copper market. The company also exported 127,095 MT of copper including exports of 36,978 MT of copper rods.

Bonus and split

The Board of Directors in their meeting held on 26 April 2010 has approved sub-division of the Equity Shares from face value of Rs. 2/- each to face value of Re. 1/- each and also a bonus issue in the ratio of 1:1 equity shares. The sub-division of equity shares has been done with a view to broaden the investor base by encouraging the participation of the retail investors and also with a view to increase the liquidity of the equity

shares. The Board keeping in view the comfortable reserves position, future expansion, profitability and its constant endeavour to reward its Shareholders has recommended a bonus issue of 1:1, i.e. one equity share of face value of Re. 1/- each for one sub-divided equity share of face value of Re. 1/- held. The sub-division and bonus issue will be subject to approval of the Shareholders in the ensuing Annual General Meeting.

Credit rating

CRISIL has upgraded its ratings of the Company's cash credit facility and non-convertible debentures to AA+/Stable' from AA/Stable'. The upgrade reflects CRISIL's expectation of significant improvement in the Company's capital structure than previously envisaged, and also reflects the group's continued strong business performance and the good progress in the group's ongoing projects. The rating on subect short-term facilities has been reaffirmed at P1+'. CRISIL has granted Very Good' rating for the pre and post investment made by the Company, which is the highest rating. Strong credit ratings by Credit Rating agencies reflect the Company's financial discipline and prudence.

MANAGEMENT DISCUSSION AND ANALYSIS

General economic outlook

The fiscal year 2009-10 began as a difficult one with the aftershocks of the depressed economic and market conditions of 2008 and 2009. There was a significant slowdown in the growth rate in the second half of 2008-09, following the financial crisis that began in the industrialized nations in 2007 and spread to the real economy across the world. The GDP growth rate in 2008-09 was 6.7%, with growth in the last two quarters hovering around 6 per cent. There was a general apprehension that this trend would persist for some time, as the full impact of the economic slowdown in the developed world worked through the system. It was also a year of reckoning for the policymakers, who had taken a calculated risk in providing substantial fiscal expansion to counter the negative fallout of the global slowdown. The continued recession in the developed world, for the better part of 2009-10, meant a sluggish export recovery and a slowdown in financial flows into the economy.

Yet, over the span of the year, the Indian economy posted a remarkable recovery, not only in terms of overall growth figures but, more importantly, in terms of certain fundamentals, which justify optimism for the Indian economy in the medium to long-term. The company also feels that the worst is over and is fully geared to take advantage of the improved economic indicators.

Asarco acquisition

During the year the plan proposed by ASARCO and sponsored by the Company’s wholly owned subsidiary, Sterlite (USA) Inc was rejected by the US District Court. The Company has preferred to appeal against the order of US District Court. Subsequently, the Bankruptcy Court also approved the motion of ASARCO to terminate the settlement and Purchase and Sale Agreement (PSA) and allowed it to draw on the USD 50 million Letter of Credit. The Company has contested the same and has filed an application before the Bankruptcy Court for refund of USD 50 million drawn down by ASARCO and payment of compensation for legal expenses. The Company has provided Rs. 2735.300 Millions (being the USD 50 million referred to above and other expenses related thereto) as exceptional item during the year ended 31 March 2010. In March 2010, ASARCO has also filed a complaint in US Bankruptcy Court for the alleged breach of the PSA signed in May 2008.

Their Goal:

To create a globally respected, worldclass metals and mining company that generates consistently strong financial returns for its shareholders.

Copper

Subject is one of the leading copper producer in India. The copper business comprises smelting and processing of copper and production of its by-products. Their operations include a smelter, refinery, phosphoric acid plant, sulphuric acid plant, dore plant and copper rod plant at Tuticorin in the state of Tamil Nadu in southern India; and a refinery and two copper rod plants at Silvassa in the Union territory of Dadra and Nagar Haveli in western India, as well as a precious metal refinery at Fujairah in the UAE. In addition, they own the Mt. Lyell copper mine at Tasmania in Australia, which provides around 8% of their copper concentrate requirements at Subject . In 2008-09, they produced 312,833 tonnes of copper.

Zinc and Lead

Their majority-owned subsidiary, Hindustan Zinc Limited (HZL) is India’s only fully integrated zinc producer with a 79.0% 2009 – up by 39.7 million tonnes over the previous year. The company mined 6.7 million tonnes of ore during 2008-09 – an increase of 17% over the previous year. market share by production volume of the Indian zinc market in fiscal 2009.

HZL was the world’s third largest zinc mining company in 2008 based on zinc mine production and is also one of the top ten lead mining companies by production volume worldwide. HZL’s Rampura Agucha mine was the largest lead-zinc mine in the world in terms of contained zinc deposits on a production basis and the fourth largest on a reserve basis. HZL was in the lowest cost quartile in terms of all zinc mining operations worldwide in 2008, the fourth largest producer of zinc worldwide and the largest integrated producer of zinc worldwide based on production volumes in 2008. In addition, HZL’s new Chanderiya hydrometallurgical zinc smelter was the third largest smelter on a production basis worldwide in 2008. They have a 64.9% ownership interest in HZL, with the remainder owned by the Government of India (29.5%) and institutional and public shareholders (5.6%). HZL’s operations include four lead-zinc mines, three zinc smelters, one lead smelter, one lead-zinc smelter, three sulphuric acid plants, one silver refinery, and captive power plants at their Chanderiya and Debari facilities in Northwest India, one zinc smelter and a sulphuric acid plant at their Vizag facility in Southeast India and one zinc ingot melting and casting plant at Haridwar in North India.

In 2008-09, HZL produced 612,047 tonnes of refined metal – up by 26% over the previous year. Refined zinc production was up by 29% to 551,724 tonnes; and refined lead increased by 4% to 60,323 tonnes. In mining, HZL’s combined reserve and resources position (net of depletion) stood at 272 million tonnes as on 31 March 2009 – up by 39.7 million tonnes over the previous year. The company mined 6.7 million tonnes of ore during 2008-09 – an increase of 17% over the previous year.

Aluminium

Located in Korba in the state of Chhattisgarh in central India, their majority owned subsidiary, Bharat Aluminium Company Limited (BALCO), in which they have a 51.0% ownership interest, is one of the five primary producers of aluminium in India and had a 28.0% primary market share by production volume in India in fiscal 2009.

BALCO’s partially integrated operations include two bauxite mines, captive power plants and refining, smelting and fabrication facilities at their Korba facility in Central India. In 2008-09, BALCO produced 356,781 MT of Aluminium.

In order to enhance aluminium production capacity to 1.0 million tonnes, BALCO entered into a memorandum of understanding with the State Government of Chhattisgarh on 8 August 2007, for a potential investment to build an aluminium smelter with a capacity of 650,000 tpa at Chhattisgarh. BALCO has commenced the implementation process of the first phase of expansion for setting up a 325,000 tpa aluminium smelter which uses pre-baked technology from the Guiyang Aluminium – Magnesium Design and Research Institute, or GAMI, of China. The first production stream from the 325,000 tpa aluminium smelter is expected in October 2010 and the target date of completion is by September 2011. In addition, BALCO is building a 1,200 MW coal-based captive power plant in Chhattisgarh. The first phase of the power plant is expected to be commissioned by June 2010 and the second phase is expected to be completed by September 2011.

Vedanta Aluminium Limited (VAL)

They are expanding their aluminium business through Vedanta Aluminium. They hold a 29.5% minority interest in Vedanta Aluminium, a 70.5%-owned subsidiary of Vedanta Resources plc.

Vedanta Aluminium is intended to be a fully integrated alumina and aluminium producer with a 1.4 million tpa, alumina refinery at Lanjigarh in the State of Orissa in Eastern India, with an associated 75 MW captive power plant, expandable to 90 MW. In March 2007, Vedanta Aluminium began the progressive commissioning of the 1.4 million tpa greenfield alumina refinery. The Lanjigarh alumina refinery started production from a single stream operation and produced 585,597 tonnes of alumina in fiscal 2009. The second production stream of the Lanjigarh alumina refinery was commissioned in April 2009.

Further, Vedanta Aluminium is expanding its alumina refining capacity at the Lanjigarh refinery from 1.4 million tpa to 2.0 million tpa through debottlenecking, which is expected to be completed by March 2010, and from 2.0 million tpa to 5.0 million tpa by constructing a second 3.0 million tpa refinery with an associated 210 MW coal-based captive power plant, which are expected to be commissioned by mid-2011.

In addition, Vedanta Aluminium is building a greenfield 500,000 tpa aluminium smelter, together with an associated 1,215 MW coal-based captive power plant, in Jharsuguda in the State of Orissa. The project will be implemented in two phases of 250,000 tpa each. Commissioning of the first phase commenced in May 2008, six months ahead of schedule, and was fully commissioned in May 2009. The second phase is expected to be progressively commissioned from June 2009 through the end of fiscal 2010. The commissioning of the captive power plant units is scheduled to meet the power requirements of the new Jharsuguda smelter and all other power requirements of the facility.

Vedanta Aluminium is also setting up another 1,250,000 tpa aluminium smelter in Jharsuguda which is expected to be progressively commissioned from March 2010 and to be completed by September 2012.

Commercial Energy Business

They have been building and managing captive power plants since 1997. Their wholly-owned subsidiary Subject Energy is building a 2,400 MW thermal coal-based power facility (comprising four units of 600 MW each) in Jharsuguda in the State of Orissa. The project is expected to be progressively commissioned starting in December 2009.

In addition, in July 2008, Subject Energy was awarded the tender for a project to build a 1,980 MW thermal coal-based commercial power plant at Talwandi Sabo, in the State of Punjab, India, by the Government of Punjab. The project is expected to be completed in April 2013.

Their commercial power generation business also includes the 123.2 MW of wind power plants commissioned by their 64.9%-owned subsidiary HZL and any additional wind power plants that HZL may commission as part of the 300 MW of wind power plants approved by HZL’s board of directors. Their power business is still under development, and they expect to have meaningful operating results for their commercial power generation business segment in financial year 2010, when Subject Energy’s first power project is expected to begin commissioning.

COPPER

Subject has concluded all its annual negotiations around similar levels with substantial improvements on side terms. Even so, the concentrate market is expected to be in a state of deficit for next couple of years. This may result in further hardening of the TC/RC terms for the Company in the near term.

Sales: Copper

The Company’s efforts towards market development in India have paid dividend in terms of accelerating growth. Their domestic sale has increased by 26% to 198,455 tonnes in 2008-09 compared to previous year, and they accounted for 29% of the market in India. They also exported 114,114 tonnes of copper cathodes and copper rods, to their key overseas markets – the Middle East, China, Japan, Philippines and Thailand. They continue to develop a sizeable customer base for the export of copper rods.

Sales: By-Products

The Company has performed well in the sale of by-products and these have contributed significantly to the bottom line.

Demand for sulphuric acid was particularly strong in the international market, especially from metal leaching industry. Sulphur supply and demand tightness had spurred up the prices of Sulphuric acid and Phosphoric acid to record levels. Sulphuric acid sales decreased by 16% to 513,306 tonnes in 2008-09. In spite of lower volume of sales, a 32% increase in unit value realisation lifted sulphuric acid revenue from Rs. 2370 millions in 2007-08 to Rs.2610 millions in 2008-09. Similarly, the unit value realisation from phosphoric acid rose by 188% to an average of Rs. 72,828 per tonne during 2008-09. They took advantage of this to grow their revenues from phosphoric acid by 182% to Rs.11440 millions. During the second half of the fiscal, Sulphur prices crashed from $ 830 PMT to $ 50 PMT, due to slow down in the fertilizers demand and demand from metal leaching. The Phosphoric acid prices rolled down from a record high of $ 2,310 PMT CFR India to $ 760 PMT CFR India by March 2009.

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER 2010

(Rs. in millions)

Particulars	Quarter ended 30.09.2010 (Unaudited)	Half Year ended 30.09.2010 (Unaudited)
1 (a) Net Sales/Income from Operations	29024.200	60903.900
(b) Other Operating Income	43.000	57.800
Total Income	29067.200	60961.700
2 Expenditure
a. (Increase)/decrease in stock in trade and work in progress	(4614.700)	(4233.800)
b. Consumption of raw materials #	29786.600	56984.600
c. Purchases of traded goods	154.800	172.000
d. Employees Cost	222.200	430.400
e. Depreciation	382.200	762.900
f. Other expenditure	2094.300	4377.500
Total Expenditure	28025.400	58493.600
3 Profit from Operations before Other Income, Interest & Exceptional Items	1041.800	2468.100
4 Other Income	4463.200	9955.100
5 Profit before Interest & Exceptional Items	5505.000	12423.200
6 Interest & Finance Charges @	40.300	1202.100
7 Profit after Interest but before Exceptional Items	5464.700	11221.100
8 Exceptional expenses	--	--
9 Profit from Ordinary Activities before tax after Exceptional Items	5464.700	11221.100
10 Tax expenses including Current & Deferred	1456.000	3018.100
11 Net Profit from Ordinary activities after Tax	4008.700	8203.000
12 Extraordinary Items (net of tax)	--	--
13 Net Profit for the period after Extraordinary Items	4008.700	8203.000
14 Paid-up equity share capital (Face value of Re. 1 each) (Corresponding quarter, half and previous year Rs. 2 per share) (Note 2)	3361.200	3361.200
15 Reserves excluding Revaluation Reserves (As per previous year's Balance Sheet)	--	--
16 Earnings Per Share (Rs.) (Not annualised)*
-Basic EPS	1.19*	2.44*
-Diluted EPS	0.93*	2.05*
17 Public Shareholding (Excluding shares against which ADRs are issued)
- Number of Shares	1,136,531,210	1,136,531,210
- Percentage of Shareholding	33.81%	33.81%
18 Promoters & promoter group Shareholding (Excluding shares against which ADRs are issued)
(a) Pledged/Encumbered
- Number of Shares	--	--
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	--	--
(b) Non-encumbered
- Number of Shares	1,774,568,852	1,774,568,852
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%
- Percentage of shares (as a % of the total share capital of the Company)	52.80%	52.80%

# Comprises (net) of exchange (gain)/loss - Rs. (61.400) millions in Q2 FY 2011, Rs.176.900 millions in H1 FY 2011, Rs. (370.400) millions in Q2 FY 2010, Rs. (457.300) millions in H1 FY 2010 and Rs. (2612.700) millions in FY 2009-10.

@ Comprises (net) of exchange (gain)/loss - Rs. (602.400) millions in Q2 FY 2011, Rs. (79.900) millions in H1 FY 2011, Rs. 244.400 millions in Q2 FY 2010, Rs. 336.800 millions in H1 FY 2010 and Rs. 68.100 millions in FY 2009-10.

(Rs. in millions)

Segment Information	Quarter ended 30.09.2010 (Unaudited)	Half Year ended 30.09.2010 (Unaudited)
1 Segment Revenue
a) Copper	27839.800	57846.200
b) Phosphoric Acid	1409.100	3617.000
c) Others	--	--
Total	29248.900	61463.200
Less: Inter Segment Revenues	224.700	559.300
Net Sales/Income from Operations	29024.200	60903.900
2 Segment Results (Profit before tax & interest)
a) Copper	1009.800	2110.400
b) Phosphoric Acid	120.200	550.200
c) Others	(1.600)	(2.600)
Total	1128.400	2658.000
Less : Interest & Finance Charges	40.300	1202.100
Add: Other unallocable income net off expenses	4376.600	9765.200
Less: Exceptional expenses	--	--
Profit before Tax	5464.700	11221.100
3 Capital Employed (Segment Assets less Segment Liabilities)
a) Copper	44657.600	44657.600
b) Phosphoric Acid	2813.000	2813.000
c) Others	73.400	73.400
d) Unallocated	183481.200	183841.200
Total	231385.200	231385.200

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

Particulars	As at 30.09.2010 (Unaudited)
SHAREHOLDERS' FUNDS
(a) Share Capital	3361.200
(b) Reserves & Surplus	228024.000
LOAN FUNDS	49044.800
DEFERRED TAX LIABILITY (Net)	3866.300
TOTAL	284296.300
FIXED ASSETS	20258.100
INVESTMENTS	120509.900
CURRENT ASSETS, LOANS & ADVANCES
(a) Inventories	26932.300
(b) Sundry Debtors	3432.700
(c) Cash and Bank balance	20380.300
(d) Other Current Assets	520.200
(e) Loans & Advances	105412.400
Less : Current Liabilities & Provisions
(a) Current Liabilities	9441.600
(b) Provisions	3708.000
Net Current Asset	143528.300
TOTAL	284296.300

Notes:

1. The above results have been reviewed by Audit Committee. The Board of Directors at its meeting held on 26th October 2010 approved the above results and its release.

2. Earnings Per Share for the quarter ended 30th September 2009, half year ended 30th September 2009 and Year ended 31st March 2010 have been reworked to give the effect of subdivision and bonus shares issued during the half year ended 30th September 2010 in accordance with Accounting Standard (AS) 20 on "Earnings Per Share".

3. Arising from the announcement of the Institute of Chartered Accountants of India (ICAI) on 29th March, 2008, the Company had adopted Accounting Standard (AS) 30 – ‘Financial Instruments: Recognition and Measurement’ effective from accounting year ended 31st March 2008. Accordingly 4 % Convertible Senior Notes, issued in October 2009, has been accounted for as per AS 30 wherein the conversion option has been measured at the fair value through profit and loss account and the Notes carried at amortised cost. If AS 30 had not been adopted for this transaction, other income would have been lower by Rs.670.500 millions and Rs.2320.100 millions for the quarter and half year ended 30th September 2010, interest and finance charges would have been lower by Rs.219.100 millions and Rs.443.300 millions for the quarter and half year ended 30th September 2010 and profit after tax would have been lower by Rs.330.200 millions and Rs.1369.000 millions for the quarter and half year ended 30th September 2010 respectively.

4. The above results are prepared in accordance with the recognition and measurement principles laid down in Accounting Standard 25 (AS 25 – Interim Financial Reporting) and have been subjected to "Limited Review" by the Auditors of the Company.

5. In response to the various writ petitions filed in the year 1996-1998 challenging the environment clearances for setting up of the copper smelter at Tuticorin, the Madras High Court by its order of 28th September 2010 ordered the closure of the smelter at Tuticorin. The Company filed a Special Leave Petition (SLP) in the Supreme Court of India against the impugned order of Madras High Court. The Supreme Court of India by its order dated 18th October 2010 has admitted the SLP and stayed the order of the High Court till 2nd week of December 2010, when the matter will be heard further.

6. "Others" business segment represents Aluminium Foils division.

7. In terms of Clause 41 of the Listing Agreement, details of number of investor complaints for the quarter ended 30^th September 2010: Beginning 1, Received 11, Disposed off 11, Pending 1.

8. Previous Period/Year figures have been regrouped / rearranged / reworked wherever necessary.

Contingent Liabilities:

Particular	As on 31.03.2010 (Rs. in millions)	As on 31.03.2009 (Rs. in millions)
Estimated amount of contracts remaining to be executed on Capital Account and not provided for (net of advances) (Cash outflow is expected on execution of such capital contracts, on progressive basis.)	11824.500	351.100
Disputed liabilities in appeal;
Income Tax ( No cash outflow is expected in the near future)	807.000	887.000
Sales Tax (relating to sale value)	72.600	42.500
Custom Duty (No cash outflow is expected in the near future)	102.000	62.300
Excise Duty (Mainly on account of difference in valuation of intermediate products meant for captive consumption at other locations and clearance of intermediate products to other locations on job basis. No cash outflow is expected in the near future).	383.900	345.600
Claim against the Company not acknowledged as debt (No outflow is expected in the near future)	236.500	0.000
Service Tax (On account of credit taken on outward freight paid to goods transport agent and no outflow is expected in the near future)	185.700	159.400
FERA/FEMA (No outflow is expected in the near future)	599.000	599.000
Others (No outflow is expected in the near future)	109.200	100.900
Letters of Credit given in favour of Asarco LLC, USA	0.000	5095.000
Unexpired Letters of Credit (These are established in favour of vendors but cargo/material under the aforesaid Letter of Credit are yet to be received as on year end date. Cash outflow expected on the basis of payment terms as mentioned in Letter of Credit)	11471.200	7711.100
Bank Guarantees (Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected)	1164.800	2922.100
Sales Bill Discounted (No cash outflow is expected)	9207.000	1924.600
Total	36163.400	36163.400

FIXED ASSETS:

• Land
• Building
• Building (Lease hold)
• Plant and Machinery
• Furniture and Fixture
• Data Processing Equipments
• Office Equipments
• Electrical Fittings
• Vehicles
• Technical know how

WEBSITE DETAILS:

PROFILE:

Subject is the principal subsidiary of Vedanta Resources plc, a diversified and integrated FTSE 100 metals and mining company, with principal operations located in India and Australia.

Subject principal operating companies comprise Hindustan Zinc Limited (HZL) for its fully integrated zinc and lead operations; Subject and Copper Mines of Tasmania Pty Limited (CMT) for its copper operations in India/Australia; and Bharat Aluminium Company (BALCO), for its aluminium and alumina operations and Sterlite Energy for its commercial power generation business.

Subject is India's largest non-ferrous metals and mining company and is one of the fastest growing private sector companies. Sterlite is listed on BSE, NSE and NYSE. It was the first Indian Metals and Mining Company to list on the New York Stock Exchange.

Subject has continually demonstrated its ability to deliver major value creating projects, offering unparalleled growth at lowest costs and generating superior financial returns for its shareholders. At the same time, it ensures that its expansion projects meet high conservative financial norms and do not place an unwarranted burden on its balance sheet and financial resources.

A majority of company’s operations are certified to the International Standards like ISO 9001,  ISO 14001 and OHSAS 18001. Subject laboratories at Tuticorin and Silvassa have been recognized with ISO 17025:2005 certification from National Accreditation Board for Testing and Calibration Laboratories (NABL). The company is LME approved copper tester. Their copper products meet the requirement of Restriction of Hazardous Substances (RoHS complied) and certified by Underwriters Laboratories Inc. Subject’s Central lab at Silvassa is a GoI approved RandD laboratory. The company has also won numerous awards for safety and environment.

Subject develops and manages a diverse portfolio of mining and metals businesses to provide attractive returns to its shareholders whilst carrying out its activities in a socially and environmentally responsible manner and creating value for the communities where it operates. As one of the largest metals and mining groups in India, Sterlite remains continually committed to managing its business in a socially responsible manner. The management of environment, employees, health and safety and community issues, in respect of its operations is central to the success of company’s business.

MANAGEMENT

Mr. Anil Agarwal - Chairman

Mr. Agarwal, who founded the Vedanta/Sterlite group in 1976, is their Chairman and was appointed to their Board of Directors in 1978. Based in the United Kingdom, he is also the Executive Chairman of Vedanta Resources Plc and the Director of BALCO, HZL, VAL. He has over 30 years of experience as an industrialist and has been instrumental in their growth and development since their inception.

Mr. Navin Agarwal - Executive Vice-Chairman

Mr.Agarwal was appointed to their Board of Directors in August 2003. His responsibilities include executing their business strategy and monitoring the overall performance and growth of their organisation. Mr Agarwal has been with the Company since its inception. He is also the Chairman of KCM and MALCO, Deputy Executive Chairman of Vedanta Resources Plc and Director BALCO, HZL, VAL.

Mr Navin Agarwal has over 20 years of experience in strategic management. He holds a Bachelor of Commerce degree from Sydenham College, Mumbai, and has also completed the Owner/President Management Program at Harvard University.

Mr. Berjis Minoo Desai - Non - Executive Director

Mr. Desai, is a Non-executive Director and was appointed to our Board of Directors in January 2003. He holds a Masters Degree in law from the University of Cambridge and has been the managing partner of Messrs J. Sagar Associates since 2003. His expertise lies in laws relating to mergers and acquisitions, securities, international commercial arbitration and in financial and international business law. Before 2003, he was a partner at Messrs Udwadia, Udeshi and Berjis.

Mr. Gautam Bhailal Doshi - Non Executive Director

Mr. Doshi, is an Independent Nonexecutive Director and was appointed to our Board of Directors in December 2001. Since August 2005, he has been employed with Reliance ADA Group Private Limited. Before that, he was a partner of RSM and Co. in India from September 1997 to July 2005. Mr Doshi has 24 years of experience in audit, finance and accounting. Mr Doshi is a Fellow Member of the Institute of Chartered Accountants of India and was a member of the Central Council and the Western India Regional Council of the Institute of Chartered Accountants of India.

Mr. Sandeep H. Junnarkar - Non Executive Director

Mr. Junnarkar, is our Non-executive Director and was appointed to our Board of Directors in June 2001. He is a solicitor and a partner of Messrs Junnarkar and Associates. Earlier, he was a partner at Messrs Kanga and Co. from 1981 to 2002. Mr Junnarkar specializes in banking and corporate law. He has a Bachelor of Science (Honours) degree followed by a Bachelor of Law degree, both from the University of Mumbai and is a member of the Bombay Incorporated Law Society.

Mr. DD Jalan – Whole Time Director

Mr Jalan joined Sterlite in 2001 as President – Australian Operations, responsible for TCM and CMT mines. He has over 27 years of experience with various companies in the engineering, mining and non-ferrous metal sectors. Mr Jalan has been associated with the Aditya Birla Group in various capacities and, from 1996 to 2000, was in charge of commercial and financial activities at the copper smelter business of Indo-Gulf Fertiliser Limited Mr Jalan are a member of the Institute of Chartered Accountants of India.

PRESS RELEASES:

3 December 2010

Sterlite Industries (India) Limited

Announces Completion of Acquisition of

Skorpion Zinc Mine In Namibia

Sterlite Industries (India) Limited (“Sterlite”) today announces the completion of the acquisition of the Skorpion Zinc Mine (“Skorpion”) in Namibia from Anglo American plc (“Anglo American”) for a cash consideration of approximately $707 million.

On 10 May 2010, Vedanta announced the acquisition of Anglo American’s Zinc Assets (“Anglo Zinc”) - for a total cash consideration of $1,338 million, on an attributable, debt and cash free basis. Anglo Zinc comprises the 100 per cent owned Skorpion mine in Namibia, the 100 per cent owned Lisheen mine in Ireland and the 74 per cent owned Black Mountain Mines, which includes the Black Mountain mine and Gamsberg project in South Africa.

Skorpion has been acquired by a subsidiary of Sterlite Infra Limited, itself a wholly owned subsidiary of Sterlite. It was intended that the acquisition of Anglo Zinc would be undertaken by Hindustan Zinc Limited (“HZL”), a subsidiary of Sterlite, subject to approval from the Indian Government as shareholder, which was not received within the contractual completion timeline for Skorpion. The acquisitions of the Lisheen mine and Black Mountain Mines are expected to be completed on schedule Anglo Zinc is an excellent operational and strategic fit with our existing business and will create significant long term value for shareholders. This acquisition will consolidate our position as the world’s largest integrated zinc - lead producer with significant reserves and resources of 478 million tonnes.

Commenting on the transaction, Anil Agarwal, Chairman said: "We are delighted to have completed the first phase of the acquisition of Anglo Zinc assets. Skorpion Zinc Mine is a high quality zinc asset and will complement our existing portfolio. We look forward to working with Skorpion’s team and remain committed to maintaining the highest standards of sustainability and exploring growth opportunities.”

About Sterlite Industries

Sterlite Industries is India's largest non-ferrous metals and mining company with interests and operations in aluminium, copper, zinc and lead and power. It is a subsidiary of Vedanta Resources plc, a London- based diversified FTSE 100 metals and mining group. Sterlite Industries' main operating subsidiaries are Hindustan Zinc Limited for its zinc and lead operations; Copper Mines of Tasmania Pty Limited for its copper operations in Australia; and Bharat Aluminium Company Limited for its aluminium operations. The company operates its own copper operations in India. The company has entered the commercial energy generation business and is in the process of setting up a 2,400MW independent power plant through its wholly owned subsidiary, Sterlite Energy Limited. Sterlite Industries is listed on the Bombay Stock Exchange and National Stock Exchange in India and the New York Stock Exchange in the United States. For more information, please visit www.sterlite-industries.com.

Sterlite Industries (India) Limited

Un-audited Consolidated Results for the First Quarter Ended 30 June 2010

Mumbai: Sterlite Industries (India) Limited (“SIIL” or the “Company”) today announced

Its Un-audited consolidated results for the first quarter (“Q1”) ended 30 June 2010.

Highlights

• Robust financial performance

_ Q1 revenue up 29% at Rs. 59250.000 Millions

_ Q1 PBIDT up 47% at Rs. 21890.000 Millions

_ Attributable PAT up 50% at Rs 10080.000 Millions

• Achieved boiler light-up of the first unit of the 2,400 MW Independent power plant at Jharsuguda
• Debari zinc smelter awarded the “International British Safety Council” award
• Strong balance sheet with cash and liquid investments of Rs. 248740.000 Millions

Financial Highlights

Particular	Quarter Ended 30.06.2010
Net Sales/ income form operation	59250.000
Profit before interest, depreciation and taxes	21890.000
Taxes	3680.000
Profit after taxes	14620.000
Minority interest	3760.000
Share in profits/loss of associates	(780.000)
Attributable profits	10080.000
Basic earnings per share (EPS) (Rs/share)	3.0

Production Summary

Particulars	Quarter ended 30.03.2010
Aluminium
Balco	630.000
Val	770.000
Cooper India/ Australia
Mined metal content	70.000
Cathodes	770.000
Zinc and lead
Mined metal content	1820.000
Refined metal content	1800.000
Silver (‘000 Kgs)	430.000
Power (Mnunits) (net of captive consumptions)	4800.000

Zinc Business

During Q1, the Company produced 182,000 tonnes of Mined metal, inline with the production in the corresponding prior quarter. During the quarter, production from the Rampura Agucha mine was impacted by lower grades and repair and maintenance of one of the mills.

Refined zinc production during the quarter was 165,000 tonnes, an increase of 18% compared with the corresponding prior quarter. The 210 ktpa Zinc smelter at Rajpura Dariba commissioned in Q4 FY2010 is ramping up well and contributed 33,000 tonnes in Q1. The production at the existing plants was impacted due to a temporary water shortage, which is expected to normalize with the onset of monsoon.

Refined silver production during Q1 was 43,000 kilograms, an increase of 5%, compared with the corresponding prior quarter. The increase in production was primarily on account of higher silver content in the mined ore and improved plant efficiencies.

Revenues for Q1 were Rs 19280.000 Millions, an increase of 29% compared with Rs. 14890.000 Millions in the corresponding prior quarter. EBITDA for Q1 was Rs 10000.000 Millions, an increase of 32% compared with Rs. 7600.000 Millions in the corresponding prior quarter. The positive impact of improved LME prices and improved by-product realization on profitability was partly offset by the impact of the additional gratuity provisions due to change in the limit of salary in the payment f Gratuity Act, full impact of long term settlement of wage agreement, higher stripping cost at mines and increase in coal, and coke costs.

Construction activity at the 100 ktpa lead smelter at Rajpura Dariba is progressing as planned, and is on schedule for completion by Q2 FY2011. Of the 160MW captive power plant, one unit of 80 MW CPP was synchronized in June 2010 and the second unit is expected to be synchronized in September 2010.

Primary mine development activity at Sindesar Khurd mine project is on schedule, with Particulars expected to commence from Q2 FY 2011

Copper Business

During Q1, copper cathode production at the Tuticorin smelter at 77,000 tonnes was lower due to a planned maintenance shutdown for 22 days beginning 22 June 2010. Mined metal production at our Australian mines contributed 7,000 tonnes during the quarter.

Revenues for Q1 were Rs 30920.000 Millions, an increase of 35% compared with Rs 22970.000 Millions in the corresponding prior quarter.

EBITDA for Q1 were Rs 2610.000 Millions, an increase of 125%, compared with Rs 1160.000 Millions in the corresponding prior quarter. The increase in profitability during the quarter was on account of improved copper recovery, higher by-product realisation and improved margins from the phosphoric acid business.

During Q1, TC/RC realisation were 13.5 USc/lb compared with 11.9 USc/lb in the corresponding prior quarter.

Acid realization, in Q1, improved to Rs 3,322 per tonne as compared with Rs 227 per tonne in the corresponding prior quarter.

Aluminium Business

During Q1, the aluminium production from BALCO II smelter was 63,000 tonnes, higher than its rated capacity. We continue to sell surplus power from the BALCO I CPP.

Revenues for Q1 were Rs 6660.000 Millions, an increase of 4%, compared with Rs 6390.000 Millions in the corresponding prior quarter. EBITDA for Q1 was Rs 980.000 Millions, compared with Rs 1330.000 Millions in the corresponding prior quarter. The decrease in profitability was primarily on account of increase in costs due to higher alumina cost, power costs, additional gratuity provision pursuant to enhancement of gratuity ceiling under Payment of Gratuity Act and unabsorbed costs of BALCO plant I.

The first metal tapping from the 325 ktpa aluminium smelter project at BALCO is expected in Q4 FY 2011. Construction of the 1,200MW captive power plant is progressing well and the first unit is expected to be synchronized in Q3 FY2011, with the remaining three units progressively synchronized by Q2 FY2012.

The share of profit/ (loss) from VAL, as an associate, for Q1 were Rs. (780.000) Millions, compared with a profit of Rs 710.000 Millions in the corresponding prior quarter. Losses in VAL were primarily on account of interest and depreciation which could not be absorbed fully because of production ramp up.

Power Business

During Q1, we sold 480 million units of power, compared with 287 million units in the corresponding prior quarter. Average realisation during the quarter was Rs 4.98 per kwh as compared with Rs. 5.43 per kwh in the corresponding prior quarter.

Revenue (net of transmission and wheeling charges and inter segment transfers) for Q1 were Rs 2390.000 Millions, an increase of 54% compared with Rs 1550.000 Millions in the corresponding prior quarter.

EBITDA for Q1 was Rs 1380.000 Millions, an increase of 36% compared with Rs 1020.000 Millions in the corresponding prior quarter.

The boiler light-up for the first 600MW unit of the 2400 MW (600MW x 4) coal based commercial power plant at Jharsuguda was announced on 26 June 10 and commercial production is expected to commence in September 2010. The remaining three units are expected to be progressively synchronized by end of Q1 FY 2012.

At the 1,980 MW supercritical IPP project at Talwandi Sabo, the EPC contract has been signed and ordering of major equipment packages have been completed by the EPC contractor. Activities have commenced on site and piling work is currently under progress. The first unit is expected to be commissioned by Q4 FY 2013 and overall project completion by Q2 FY 2014.

Minority Interest

Minority Interest for Q1 was Rs 3760.000 Millions (25.7%) comprising Rs. 3130.000 Millions at HZL and Rs. 630.000 Millions at BALCO. Minority Interest in corresponding prior quarter was Rs 3220.000 Millions (34.8%). Minority interest percentage decreased during Q1, primarily on account of lower profit mix from BALCO and HZL.

Port business

We have entered the port business through a contract to develop a coal berth at Vizag on a revenue sharing basis in a joint venture with Leighton Contractors (India) Private Limited. Agreement has been signed with Vizag Port Authorities and the estimated cost of the project is Rs.5000.000 millions which is likely to be completed in mid 2012.

The Company, along with its joint venture partner Leighton, has also been awarded the project for development of multipurpose berth on revenue sharing basis for Paradeep Port. The indicative cost of the project is likely to be Rs.4000.000 Millions.

Cash, Cash Equivalents and liquid investments consolidated cash, cash equivalents and liquid investments as at 30 June 2010 was Rs. 248740.000 Millions. This includes Rs. 170420.000 Millions in debt mutual funds and Rs. 78320.000 Millions in cash and fixed deposits with the banks. The Company has a strong internal control mechanism that includes continuous review and monitoring of all its investments. The investments portfolio is independently reviewed by Credit Rating Information Services of India Limited (CRISIL) on an ongoing basis.

Bonus and Stock Split

Consequent to the announcement made earlier, the equity shares of the company were subdivided from Rs. 2/- each to Re 1/- each fully paid up and has also issued bonus shares in the ratio of 1:1 on the subdivided shares during the quarter.

Ashwin Bajaj

Vice President – Investor Relations

Sterlite Industries (India) Limited

sterliteinvestorrelations@vedanta.co.in

Tel: +91 22 6646 1531

Sheetal Khanduja

AGM – Investor Relations

Sterlite Industries (India) Limited

sterliteinvestorrelations@vedanta.co.in

Tel: +91 22 6646 1531

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.45.09
UK Pound	1	Rs.72.82
Euro	1	Rs.63.43

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	6
--RESERVES	1~10	7
--CREDIT LINES	1~10	6
--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	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		58

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.