MIRA INFORM REPORT

Report Date :

25.11.2011

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) :	31.03.2011
Date of Incorporation :	08.09.1975
Com. Reg. No.:	18-62634
Capital Investment / Paid-up Capital :	Rs. 3361.196 Millions
CIN No.: [Company Identification No.]	L65990TN1975PLC062634
TAN No.: [Tax Deduction & Collection Account No.]	MUMS36821B MUMS22522D
PAN No.: [Permanent Account No.]	AABCS4955Q
Legal Form :	A Public limited liability company. The company’s shares are listed on the Stock Exchange.
Line of Business :	Manufacturer of Telephone Cables, Copper Rods and Aluminium Rolled Products.
No. of Employees :	16000 (Approximately)

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 929156000
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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 30.03.2011

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. M.S. Mehta
Designation :	Chief Executive Officer

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	834160	0.03
Bodies Corporate	119953559	4.08
Sub Total	120787719	4.11
(2) Foreign
Bodies Corporate	1671144924	56.90
Sub Total	1671144924	56.90
Total shareholding of Promoter and Promoter Group (A)	1791932643	61.01
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	117283529	3.99
Financial Institutions / Banks	12686617	0.43
Central Government / State Government(s)	2800	-
Insurance Companies	167510286	5.70
Foreign Institutional Investors	415828117	14.16
Sub Total	713311349	24.29
(2) Non-Institutions
Bodies Corporate	203610717	6.93
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 millions	107247753	3.65
Individual shareholders holding nominal share capital in excess of Rs. 0.100 millions	30000081	1.02
Any Others (Specify)
Non Resident Indians	5819204	0.20
Trusts	72048834	2.45
Clearing Members	3371936	0.11
Foreign Bodies - D R	9120400	0.31
Directors & their Relatives & Friends	72000	0.00
Any Other	652820	0.02
Foreign Nationals	10113	0.00
Overseas Corporate Bodies	4000	0.00
Sub Total	431957858	14.71
Total Public shareholding (B)	1145269207	38.99
Total (A)+(B)	2937201850	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued
(1) Promoter and Promoter Group
(2) Public	258517832	--
Sub Total	424005684	--
Total (A)+(B)+(C)	3361207534	--

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
Phosphoric Acid	2809

PRODUCTION STATUS

As on 31.03.2011

Particulars	Unit	Installed Capacity	Actual Production
Continuous Cast Copper Rods*	MT	268000	187892
Copper Cathodes**	MT	405000	303991
Aluminium Cold Rolled Products	MT	20000	---
Phosphoric Acid	MT	230000	154232
Sulphuric Acid***	MT	1300000	1036353

Note:

1) * Net of 6 MT (Previous year NIL) loss of material.

2) Includes 925 MT (Previous year NIl) Produces under Job Work

1) ** Includes 187397 MT (Previous Year 197774 MT) used for captive consumption

2) Net of 14MT (Previous Year 28MT) Loss of material

1) *** Includes 441542 MT (Previous Year 560628 MT) used for captive consumption

GENERAL INFORMATION

No. of Employees :

16000 (Approximately)

Bankers :

• Australia and New Zealand Banking Group Limited
• Citi Bank
• Credit Agricole Indosuez
• DBS Bank Limited
• Deutsche Bank
• HDFC Bank Limited
• ICICI Bank Limited
• IDBI Bank Limited
• JP Morgan Chase Bank
• Royal Bank of Scotland
• Standard Chartered Bank
• State Bank of India
• Syndicate Bank
• The Hong Kong and Shanghai Banking Corporation Limited

Facilities :

Secured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
Redeemable Non Convertible Debentures	600.000	1000.000
Buyer Credit From Banks*	15094.400	0.000
Total	15694.400	1000.000
Notes: * net of arrangement fees paid in advance 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 Tamil Nadu; Lonavala 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. As on 31 March 2011, 8.24% debentures are due for redemption on 10 April 2013. Buyer’s Credit at (B) above are secured by way of firrst charge by hypothecation on the entire Stock of raw materials, goods in process and all semi Finished, finished, manufactured articles together with stores and spares and future book debts, receivables, claims and outstanding bills etc. and such charge in favour of the banks ranking pari passu inter se, without any preference or priority to one over the other. The charge on the above assets is yet to be created. Amount due within one year Rs. 15094.400 Millions (Previous Year ` Nil).
Unsecured Loan	As on 31.03.2011 (Rs. in Millions)	As on 31.03.2010 (Rs. in Millions)
A) Deferred Sales Tax Liabilities	783.300	687.600
B) 4% convertible senior note of US $ 1000 per note	19921.900	22225.500
C) Loans from Banks
Foreign Currency Loans	0.000	902.800
Rupee Loan	247.500	557.500
Loan from others	11745.400	0.000
Buyer’s Credit from Banks*	9217.800	27848.600
Total	41915.900	52222.000
Notes : Amount due within one year Rs. 21179.400 millions (Previous Year ` Rs. 29061.400 millions). Loans in D above represent commercial paper at the end of the year of ` Rs. 11745.400 millions (Previous Year ` Nil). Maximum amount outstanding at any time during the year was Rs. 24745.400 millions (Previous Year Rs. 12397.300 millions).

Banking Relations :
Auditors :
Name 1 :	Charturvedi and Shah Chartered Accountants
Address :	Mumbai
Name 2 :	Deloitte Haskins and Shah Chartered Accountants
Address :	Kolkata, West Bengal
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 Opportunities and Ventures Limited Hindustan Zinc Limited Sterlite Energy Limited Fujairah Gold FZE Talwandi Sabo Power Limited Sterlite (USA) Inc THL Zinc Holding B.V. (w.e.f. 15 February 2011) THL Zinc Namibia Holdings (Proprietary) Limited (w.e.f. 03 December 2010) Skorpion Zinc (Pty) Limited (w.e.f. 03 December 2010) Skorpion Mining Company (Pty) Limited (w.e.f. 03 December 2010) Namzinc (Proprietary) Limited (w.e.f. 03 December 2010) Amica Guesthouse (Proprietary) Limited (w.e.f. 03 December 2010) Rosh Pinah Health Care (Proprietary) Limited (w.e.f. 03 December 2010) Malco Power Company Limited (w.e.f. 19 February 2011, Malco Industries Limited (w.e.f. 04 March 2011 Black Mountain Mining (Proprietary) Limited (w.e.f. 04 February 2011) Vedanta Lisheen Finance Limited (w.e.f. 15 February 2011) Vedanta Base Metals (Ireland) Limited (w.e.f. 15 February 2011) Vedanta Lisheen Mining Limited (w.e.f. 15 February 2011) Killoran Lisheen Mining Limited (w.e.f. 15 February 2011) Killoran Lisheen Finance Limited (w.e.f. 15 February 2011) Lisheen Milling Limited (w.e.f. 15 February 2011) Killoran Concentrates Limited (w.e.f. 15 February 2011) Killoran Lisheen Limited (w.e.f. 15 February 2011) Azela Limited (w.e.f. 15 February 2011) Killoran Lisheen Holdings Limited (w.e.f. 15 February 2011) THL Zinc Ventures Ltd. (w.e.f. 19 November 2010 THL Zinc Ltd (w.e.f. 19 November 2010) Vizag General Cargo Berth Private Limited (w.e.f. 20 April 2010) Paradip Multi Cargo Berth Private Limited (w.e.f. 08 February 2011) Pecvest 17 Proprietary Limited (w.e.f. 26 November 2010) Lisheen Mine Partnership (w.e.f. 15 February 2011) THL Zinc Co-operatief U.A (w.e.f. 01 December 2010)
Associates :	Vedanta Aluminium Limited
Fellow Subsidiaries :	Sea Goa Limited The Madras Aluminium Company Limited Konkola Copper Mines Plc Sesa Industries Limited V S Dempo and Company Private Limited Dempo Mining Corporation Private Limited Sterlite Iron and Steel Company Limited

CAPITAL STRUCTURE

After 23.07.2011

Authorised Capital Rs. 5000.000 Millions

Issued, Subscribed and Paid up Capital Rs. 3361.196 Millions

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
5000000000	Equity Shares	Rs.1/- each	Rs. 5000.000

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
3361207534	Equity Shares	Rs.1/- each	Rs. 3361.200 Millions

Notes:

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) 2324352742 Equity Shares of 1 each (Previous Year 321973026 Equity Shares of 2 each) were allotted as fully paid-up bonus shares by way of capitalization of General Reserve and Security Premium.

(c) 2733675 Equity Shares of 10 each were allotted pursuant to scheme of Amalgamation without payment being received in cash before buy back, extinguishment, sub-division and issue of bonus shares.

(d) 4099400 Equity Shares were allotted as fully paid upon conversion of 50,000 Foreign Currency Convertible Bonds before sub-division and issue of bonus shares.

(e) 109272684 (Previous Year 124992080) American Depository Shares (ADS) representing 437090736 underlying equity shares of 1 each (Previous Year 124992080 of 2 each) post bonus and split during the year. One (1) American Depositor Share represents Four (4) Equity Shares of 1 each.

2. of the above equity shares,

1836632776 (Previous Year 453123492) equity shares (including equity shares representing ADS) are held by Company’s holding company and 102453600 (Previous Year 25613400) by a fellow subsidiary of the Company.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		3361.200	1680.800	1417.000
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		228927.800	221000.000	138981.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		232289.000	222680.800	140398.400
LOAN FUNDS
1] Secured Loans		15694.400	1000.000	3038.000
2] Unsecured Loans		41915.900	52222.000	35262.400
TOTAL BORROWING		57610.300	53222.000	38300.400
DEFERRED TAX LIABILITIES		4328.600	3638.100	3336.500
TOTAL		294227.900	279540.900	182035.300
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		14672.100	15608.200	16136.600
Capital work-in-progress		7203.500	2658.100	321.600
INVESTMENT		62378.500	109841.700	116618.500
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	31898.700	19940.400	14069.000
	Sundry Debtors	7979.800	3851.100	5268.900
	Cash & Bank Balances	18912.800	22849.100	17378.400
	Other Current Assets	879.700	1137.400	349.200
	Loans & Advances	188859.500	121363.200	28377.000
Total Current Assets		248530.500	169141.200	65442.500
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	29998.100	8989.100	7558.300
	Other Current Liabilities	2226.300	2059.000	2171.400
	Provisions	6332.300	6660.200	6754.200
Total Current Liabilities		38556.700	17708.300	16483.900
Net Current Assets		209973.800	151432.900	48958.600
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		294227.900	279540.900	182035.300

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	152950.000	131142.800	115659.900
		Other Income	16240.900	11192.600	8099.300
		TOTAL (A)	169190.900	142335.400	123759.200
Less	EXPENSES
		Purchases of traded goods	172.000	932.200	757.000
		Manufacturing & Other Expenses	146061.300	125475.900	100164.800
		Personnel	885.700	772.800	822.800
		Selling and Distribution	868.300	919.000	956.600
		Administrative & General Expenses	1119.700	1349.300	1353.200
		Exceptional Items	0.000	2735.300	(553.100)
		Increase or decrease in stock	(2960.000)	(3397.900)	3165.400
		TOTAL (B)	146147.000	128786.600	106666.700
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		23043.900	13548.800	17092.500
Less	FINANCIAL EXPENSES (D)		2774.600	2564.400	2039.200
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		20269.300	10984.400	15053.300
Less/ Add	DEPRECIATION/ AMORTISATION (F)		1526.500	1506.400	1661.800
	PROFIT BEFORE TAX (E-F) (G)		18742.800	9478.000	13391.500
Less	TAX (H)		4545.700	1163.000	1027.200
	PROFIT AFTER TAX (G-H) (I)		14197.100	8315.000	12364.300
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		25909.800	26834.100	19441.000
Less	APPROPRIATIONS
		Transfer to debenture redemption reserve account	(85.000)	29.000	30.000
		General Reserve	5000.000	5000.000	2040.000
		Dividend	3697.300	3686.900	2901.200
		Tax on Dividend	599.800	523.400	421.500
	BALANCE CARRIED TO THE B/S		30894.800	25909.800	26834.100
	EARNINGS IN FOREIGN CURRENCY
		FOB Value of Export Earnings	62890.300	59210.700	45657.900
		Management Fees	9.100	172.300	45.300
		Other Earnings	3636.500	816.900	98.500
	TOTAL EARNINGS		66535.900	60199.900	45801.700
	IMPORTS
		Raw Materials	143578.300	120738.800	81488.900
		Stores & Spares	339.200	371.100	481.200
		Capital Goods	13.100	57.100	192.100
	TOTAL IMPORTS		143930.600	121167.000	82162.200
	Earnings Per Share (Rs.)
	Basic		4.22	2.60	NA
	Diluted		3.81	2.46	NA

QUARTERLY / SUMMARISED RESULTS

PARTICULARS	30.06.2011	30.09.2011
	1^st Quarter	2^nd Quarter
Net Sales	41726.300	48017.500
Total Expenditure	39509.800	47356.400
PBIDT (Excl OI)	2216.500	661.100
Other Income	4193.800	4592.000
Operating Profit	6410.300	5253.100
Interest	1141.000	1110.900
Exceptional Items	0.000	0.000
PBDT	5269.300	4142.200
Depreciation	378.400	375.100
Profit Before Tax	4890.900	3767.100
Tax	1462.300	1195.400
Provisions and contingencies	0.000	0.000
Profit After Tax	3248.600	2571.700
Extraordinary Items	0.000	0.000
Prior Period Expenses	0.000	0.000
Other Adjustments	0.000	0.000
Net Profit	3248.600	2571.700

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	8.39	5.84	9.99
Net Profit Margin (PBT/Sales)	(%)	12.25	7.23	11.58
Return on Total Assets (PBT/Total Assets}	(%)	7.12	5.13	16.42
Return on Investment (ROI) (PBT/Networth)		0.08	0.04	0.10
Debt Equity Ratio (Total Liability/Networth)		0.41	0.32	0.39
Current Ratio (Current Asset/Current Liability)		6.45	9.55	3.97

LOCAL AGENCY FURTHER INFORMATION

FINANCIAL PERFORMANCE

During the year the gross turnover of the Company increased by 18.85% from Rs. 136764.700 Millions to Rs. 162538.800 millions. The increase in turnover by 18.85% was primarily due to the increase in the average Copper LME prices from US$ 6,112 / MT to US$ 8,138 / MT.

TC / RC (Treatment Charges and Refining Charges) realization in the financial year 2011 was 11.90 USc / lb, as compared to the 13.54 USc / lb in the previous year due to suppressed spot TC / RCs market. The earnings before interest, tax depreciation and amortization for the same period increased by 40.92% from Rs. 16352.200 millions to Rs. 23043.900 millions and the Net Profit increased by 70.74% from Rs. 8315.000 millions to ` Rs. 14197.100 millions in the current year.

OPERATIONAL PERFORMANCE

The year was very challenging due to lower TC / RC and higher input costs, thereby reducing the product margin. Sulphuric acid and phosphoric acid realization was higher as compared to the previous year in line, with the increasing sulphur prices. Production was also affected due to planned bi-annual maintenance shutdown and also due to temporary stoppage of the Tuticorin copper smelter as per the Honourable Madras High Court order, dated 28 September 2010 for closure of Tuticorin copper unit.

The operational performance was as follows:

Product	2010-2011	2009-2010	Variance
Copper Cathodes	303991MT	334174MT	(9.0%)
Copper Rods	187892MT	196882MT	(4.6%)
Sulphuric Acid	968760MT	1036353MT	(6.5%)
Phosphoric Acid	154232MT	205844MT	(25.1%)

During the year the Company consolidated its leadership position in domestic copper with record sales of 206653 MT. Production of cathodes was 303991 MT in the financial year 2011, lower by 9% year on year reflecting both the impact of the planned maintenance undertaken, the effect of lower copper grades in concentrate on production and temporary stoppage following the High Court order in end September 2010. On the Special Leave Petition (SLP) filed by the Company, Honourable Supreme Court of India stayed the operation of the order of Madras High Court directing closure of Copper Smelter at Tuticorin. The unit is currently operational at its full capacity. The Company also exported 96674 MT of copper, including exports of 31377 MT of copper rods.

PROJECTS

Copper Smelter - Four Lakh Tonnes Per Annum (4 LTPA) and 2 x 80 - 160 MW Captive Power Plant The construction of the Captive Power Plant at Tuticorin is in progress and the first unit is now scheduled for commissioning in Q4 of the financial year 2011-12. While the Ministry of Environment and Forest (MoEF) clearance is in place for the 4 LTPA, the Copper Smelter Expansion Project at Tuticorin is being rescheduled, awaiting the consent from the State Pollution Control Board.

SHARE CAPITAL

Pursuant to the shareholders approval at the 35th Annual General Meeting on 11 June 2010 and the Record Date of 22 June 2010, the Company’s stock split from Rs.2/- to Rs.1/- and Bonus in the ratio of 1:1 Equity Shares of Rs.1/- was issued to the shareholders. The Company’s issued and paid up capital increased to Rs. 3316.200 millions (consisting of 3361207534 Equity Shares of Rs.1/- each) from Rs. 1680.800 millions (consisting of 840400422 Equity Shares of Rs. 2/- each).

MANAGEMENT DISCUSSION AND ANALYSIS

PERFORMANCE

OVERVIEW

Global economy growth exceeded most expectations in the financial year although the global economy remained volatile. Commodity prices declined at the start of the year but recovered in the second half as European sovereign debt concerns receded and developed economies started to stabilise. Demand from Asian economies remained robust and was the key driver of growth.

Growth story in India continues to remain strong with increased consumption demand of commodities. They remain focused on delivering operational excellence and sustained volume growth. On the backdrop of this favourable increased demand and strong prices we delivered record productions and a very strong set of results across their businesses.

During the year 2010-11, they completed the acquisition of Zinc assets of Anglo- American Plc. (Anglo Zinc) comprising its Skorpion mines in Namibia, Lisheen mines in Ireland and 74% owned Black Mountain mines in South Africa, which includes the Black Mountain mine and the Gamsberg project. Subject is the world’s largest integrated zinc-lead producer and has significant operating expertise with zinc. The acquired zinc assets is an excellent operational and strategic fit with our existing business and is expected to create significant long term value.

During the year all their businesses delivered volume growth, with significant increase in zinc and commercial power production. Their ongoing cost reduction measures have helped to contain the impact of higher input prices while higher volumes have also benefited unit operating costs. Stronger commodity prices for copper, aluminium and zinc have also contributed to the increase in PBDIT during the year.

They have made excellent progress during the year in executing their project led organic growth programme. Their focus on continued asset optimisation and reduction of controllable costs remains key to delivery excellent results and long term value.

PERFORMANCE - COPPER

MARKET OVERVIEW

Global refined copper production in 2010 was reported as 19.100 million tonnes, an increase of about 4%, over the 2009 figure of 18.400 million tonnes. Global refined consumption exceeded supply by about 250000 tonnes. Global mine production growth slowed to 0.8% in 2010, hampered by falling copper grades and labour disputes. Global copper consumption is estimated to increase by about 5% during 2011. Similar to last year, overall Indian copper consumption grew by 4% in the financial year 2011, constrained by increased imports of finished electrical machinery. They sold 68% of production in their local market and the remaining 32% was exported to China, South East Asia and the Middle East.

Growth in the power sector in India, and increased spending on infrastructure including housing, continued to drive the growth of copper consumption. Over the medium to long term it is expected to grow at about 8-9% per annum.

STRATEGIC PRIORITIES

• Double the copper smelting capacity to meet growing regional demand

• Continue to retain and further sharpen cost efficiency

• Commission captive power plant and continue to drive operational excellence initiatives

PRODUCTION PERFORMANCE

Production of cathodes at our Copper - India business was 304 kt in the financial year 2011, lower by 9% year on year, reflecting the impact of bi-annual shutdown of smelter undertaken and temporary shutdown following the Hon’ble Madras High Court order in end of September 2010. The Company’s Special Leave Petition (SLP) challenging the High Court order is being heard by the Hon’ble Supreme Court, and the unit is currently operational at its full capacity.

During the year they also stabilized the precious metal refinery and rod plant at Fujairah.

Mined metal production at our Australian mines was 4.2% lower at 23 kt in the financial year 2010-11.

UNIT COSTS

Benefiting from improved by-product sales and improved operational performance, Copper India performed well delivering a reduction in unit conversion cost from 10.4 US cents per lb in financial year 2009-10to 4.0 US cents per lb in financial year 2010-11. Treatment and refining charges (TC / RCs) received in the financial year 2010-11 were lower at 11.9 US cents per lb as compared with 13.6 US cents per lb in the financial year 2009-10 due to tighter copper concentrate market.

The unit cost of production at their Australian operations, including TC / RCs and freight, in financial year 2010-11 was 190 US cents per lb up from 160 US cents per lb in financial year 2009-10, mainly due to higher mining cost and strong Australian dollar.

SALES

Copper sales in the domestic market were 206 kt in the financial year 2011. 76% of these were value added copper rods, supplied largely to the rapidly growing power sector. The Indian copper market continues to demonstrate a robust growth rate of 4% growth in the financial year 2010-11. The revenues increased by 20% to ` 15655 Crore.

BY-PRODUCTS

The Sulphur market in the financial year 2010-11 witnessed a year on year reduction in global supplier inventory level and improved demand in the fertilizer segment. This along with high demand in the metal leaching segment due to rising copper and nickel prices pushed the Sulphuric acid prices upwards. The Sulphur prices during the year witnessed an increase by about 23% from $170 per MT FOB ADNOC to $210 per MT FOB ADNOC (Abu Dhabi National Oil Corporation). The Company was able to capitalise on this surge and achieved better realisation compared to the previous year.

The increased consumption of phosphate fertilizers in India had lead to overall increase in the Phosphoric acid prices during the last financial year. The Indian import prices of Phosphoric acid saw an increase by about 7% during the year from $ 775 per MT CFR to $ 830 per MT CFR. Despite a steep surge in input costs the company was able to control the cost of production of Phosphoric acid business through optimal selection of raw material blend (rock phosphate).

Gypsum Sales Last year surpassed the Production by about 0.260 million tonnes, thus depleting the stocks further. The higher demand from cement industry due to their capacity augmentation created a big demand for the material which in turn helped in fetching a better realization compared to previous years. The unit has planned for several measures in the financial year ahead to make Superior Quality Gyspum to cater to its customers.

Copper Slag sales were a breakthrough achievement during the year. Slag sales of 700 kt were in excess of generation. Copper slag was sold to various industry segments like abrasives, cement and road fill applications. The potential usage in other applications like concrete, etc. is being explored. The usage of Copper slag is getting increased as construction as an alternate to sand. Assessing the demand and successful field trials, copper slag is expected to add further value to the Company’s by products chain.

TREATMENT CHARGES AND REFINING CHARGES (TC/RC)

TC / RC realization during the financial year 2011 was 11.9 USc/lb, when compared to 13.6 USc/lb in the previous year. Copper Mines continue to under perform in production due to falling head grades leading to pressure on TC / RC. However a significant amount of copper mine production is expected to come on stream in FY 2011-12 and the TC/RC terms are expected to turn more favourable. Subject has sufficient coverage and receives the copper concentrate under its long term contracts and a small amount of the spot requirement is covered as per the smelter’s requirement.

FINANCIAL PERFORMANCE

PBDIT for the financial year 2010-11 was Rs. 10430.000 millions 40% higher than the PBDIT of Rs. 7440.000 millions for the financial year 2009-10. This was primarily due to higher LME prices and lower unit costs at Copper India and with the improved by product realization.

PROJECTS

400 kt per annum Copper Smelter

Whilst MoEF clearance is in place for the 400 kt per annum copper smelter expansion project at Tuticorin, this project is being rescheduled awaiting consent to establish from the State Pollution Control Board.

160 MW Captive Power

PLANT

The construction of the captive power plant at Tuticorin is in progress and the first unit is now scheduled for commissioning in Q4 of the financial year 2011-12.

OUTLOOK

The global market is expected to grow at around 5% in current year with higher demand from developing countries to support the infrastructure growth. They expect stable operating performance at their smelter in India and their mines in Australia.

PERFORMANCE - ZINC AND LEAD

MARKET OVERVIEW

Global zinc demand rebounded strongly in 2010, growing by 14.8% following a fall of 9.4% in 2009, at 11.6 MT. Urbanisation and increased spending on infrastructure in developing countries have continued to be the key driver for demand. While long-term global demand is expected to grow at 3-4% per annum, the near term demand growth in Asia (excluding China), their key export market, is poised to grow at 7%. India, where their major zinc facilities are located, continues to present a promising growth trajectory on the back of low per capita zinc consumption at 0.45 kg as compared to the global average zinc consumption of 1.8 kg per capita zinc.

Hindustan Zinc Limited (HZL), their Indian zinc-lead-silver business, has been successful in maintaining around 82%, market share in the local zinc market, registering a 7% year on year growth.

STRATEGIC PRIORITIES

• Retain and further sharpen our relative cost competitiveness.
• Continue to focus on adding reserves and resources in excess of mining depletion.
• Deliver ramp-up of silver production.
• Develop Gamsberg project in South Africa.

PRODUCTION PERFORMANCE

ZINC INDIA OPERATIONS:

Improved operational performance and ramp up of enhanced capacity at their mines contributed to an increase in mined metal production of zinc and lead in the financial year 2010-11, up 9.0% to 840 kt. The new mill at the mine achieved 84% capacity utilisation in March 2011.

Refined zinc production also rose substantially to 712 kt, an increase of 23.2%, primarily due to additional volumes from the newly commissioned zinc smelter at Dariba. Lead production was 57 kt, a decrease of 7 kt over the previous year. Higher silver content in the Ore was the key factor behind the record silver production of 4.76 million ounces in the financial year 2010-11, 6.7% higher than the 4.46 million ounces produced in the financial year 2009-10.

UNIT COSTS

The unit cost of zinc production in the financial year 2010-11, excluding royalties, rose 16.5% to US $808 per tonne compared with US $698 per tonne in the financial year 2009-10, primarily due to higher coal costs, higher strip ratio at mines and one-off gratuity (retirement benefits) costs. Royalties were also higher at US $30 per tonne linked with LME prices.

SALES

Their domestic sales of zinc metal at 412 kt were up 6.7% (the financial year 2009-10: 386 kt) maintaining 82% market share. The rest of the metal produced was exported to neighbouring markets like Taiwan, Indonesia, Malaysia and Middle East. Revenues were further augmented by the sale of 66000 dry metric tonnes of surplus zinc and 39000 dry metric tones of lead concentrate.

The revenue during the year increased by 24% to Rs. 98440.000 millions. This was mainly due to volume growth, higher LME realization and improved operational efficiencies.

FINANCIAL PERFORMANCE

Increased production volumes, higher prices and by-product credit contributed to a strong increase in PBDIT for the financial year 2010-11, up 18% to Rs. 55560.000 millions compared with the financial year 2009-10.

This increase was partially off-set by increased net operating costs and royalties.

The positive impact of higher volumes, rupee appreciation against US dollar and stable operating cost, contributed significantly to company’s operating margins.

PROJECTS

The Silver rich Sindesar Khurd mine expansion project was completed one year ahead of schedule and the new mill of 1.5 million tonnes capacity was commissioned in Q3 of the financial year 2010-11.

At Dariba, both units of the 2 x 80 MW power plants were commissioned in the financial year 2010-11. The 100 kt per annum lead smelter at Rajpura Dariba is expected to be completed by Q1 of the financial year 2011-12.

EXPLORATION

Ongoing exploration activities at HZL have yielded significant success with 1.4 million tonne contained metal added to gross R&R, prior to 0.8 mt mined out in the financial year 2010-11. Total R and R on March 31, 2011 was 34.7 million tonne of contained zinc-lead metal and 885 million oz of silver.

ZINC INTERNATIONAL OPERATIONS

Post acquisition of zinc assets from Anglo America Plc. Group, they have produced 44 kt of mined metal and 50 kt of refined Zinc metal a total of 94 kt metal units.

OUTLOOK

Zinc India continues to be on a volume growth path having recently reached its targeted mining capacity, equivalent to 1 MT of refined metal, and the ramp-up of the Sindesar Khurd mine is expected to increase silver content in concentrate. Commissioning of the lead smelter at Dariba will help conversion of lead concentrate to lead metal. The outlook for demand remains positive in their target markets and globally and their new acquisition, Zinc International, is expected to deliver steady performance.

PERFORMANCE – ALUMINIUM

MARKET OVERVIEW

The global aluminium industry recorded a 12.8% growth in production and 16.7% growth in consumption during the year after a turbulent period. Globally the industry is facing the challenge of rise in costs and other input costs. This is also reflected in the increase in aluminium LME prices.

Their aluminium facilities are located in India in the state of Orissa and Chattisgarh where there are abundant bauxite and coal deposits. This under scores India’s unique advantage of being rich in natural resources required to produce aluminium at a competitive cost

Sterlite emerged as the largest producer of aluminium in India and, within a short period, acquired industry leading market share of 39% (including VAL production) in the local Indian market. The Indian aluminium market is dominated by growing demand from the power sector. Over time, the relative share of aluminium applications in other segments is expected to pick up with rapid urbanisation and construction sector growth.

Sterlite’s plants had focused on value added products like wire rods, rolled product and billets to capitalise on market growth and optimise returns.

STRATEGIC PRIORITIES

1. Complete expansion projects.

2. Expedite development of coal block.

PRODUCTION PERFORMANCE

The saleable production during the year that ended on March 31, 2011 was 255 kt as against 268 kt during the corresponding period of the previous year. The reduction was mainly due to lower availability metal on account of phasing out of plant I smelter. However with the installation of the new rod mills and increased availability of rolling mills the product mix was enriched.

UNIT COSTS

The unit cost of production at the BALCO Korba II smelter was US $1,784 per tonne for the financial year 2010-11, 16% higher than last year primarily due to increase in alumina, coal and carbon costs and a one-off increase in gratuity (retirement benefits) cost.

SALES

During the year, the sales volume was 247412 tonnes as against 267802 tonnes of the last year. The revenues increased by 7% at Rs. 30240.000 millions. The lower sales quantity was due to lower availability of metal on account of closure of plant I smelter. However, the sales of value added products i.e. rods increased by 8% as compared to the previous year. LME aluminium prices increased by 21% to US$ 2,257 per tonne as compared to US$ 1,868 per tonne in the previous year

FINANCIAL PERFORMANCE

PBDIT for the financial year 2010-11 was `Rs.6160.000 millions 3% higher than the financial year 2009-10. This improved performance was primarily driven by LME prices, partially off-set by higher carbon and coal costs, which were further increased by around 30% by Coal India in March 2011 and a new green tax on coal.

PROJECTS

BALCO ALUMINIUM SMELTER

The 1200 MW (4 x 300 MW) captive thermal power plant at Korba, Chhattisgarh is progressing well, and they expect to commence power generation from the first unit by Q2 the financial year 2011-12. The approval process for BALCO’s 211 million tonnes coal block is progressing well, and they expect to commence coal mining by Q4 of the financial year 2011-12, subject to statutory approvals. The new 325 kt aluminium smelter at Korba is making good progress.

VEDANTA ALUMINIUM LIMITED

LANJIGARH ALUMINA REFINERY AT LANJIGARH

Alumina hydrate production during the year was 696 kt was lower by 7.70% as compared to the previous year. The production of calcined alumina produced during the year was 707 kt which is lower by 7.2% as compared to the previous year. The aluminium refinery at Lanjigarh continue to operate at a capacity of 1 MT per annum with bauxite supply from BALCO and other third parties i.e. from eastern, central and western India.

JHARSUGUDA ALUMINIUM SMELTER (VAL)

Aluminium production in the financial year 2010-11 was at record 386 kt primarily due to increase in production from the new 500 kt Jharsuguda aluminium smelter.

OPERATIONAL PERFORMANCE

They had restabilised pots post the power outage in Q1 the financial year 2010-11, the relining cost of the pots has contributed to increase in cost of Jharsuguda. The unit cost of production at the VAL Jharsuguda smelter was US $1,820 per tonne for the financial year 2010-11, higher than previous year mainly due to increase in alumina, coal and carbon cost. The alumina cost of production was US $326 per ton, marginally higher compared with previous year, primarily due to higher input prices for caustic soda and coal.

FINANCIAL PERFORMANCE

PBDIT for the financial year 2010-11 was Rs. 7150.000 millions 95% higher than the financial year 2009-10. This improved performance was primarily driven by rising volumes and LME prices, partially off-set by higher carbon and coal costs.

BAUXITE MINING AT NIYAMGIRI HILLS, LANJIGARH (VAL)

The Ministry of Environment and Forests (MOEF) vide order dated 30 August 2010 rejected the forest clearance relating to Niyamgiri mining lease to Orissa Mining Corporation (OMC) for mining Bauxite. This was despite the approval of forest diversion given by Honourable Supreme Court of India in 2008. OMC has subsequently filed a Writ Petition in the Supreme Court challenging the MOEF decision and for issuing direction to MOEF to grant the forest clearance. In the meantime, Government of Orissa (GOO) is considering grant of alternate mines for supply of Bauxite to the Company’s refinery. At present the refinery is in operation with outsourced Bauxite from various states. Since there are nearly 800 million tonne of a bauxite reserve available in the surrounding area of the plant, the Company does not envisage problem in availability of Bauxite.

PROJECTS

Post the MOEF direction in August 2010, further work on the refinery expansion project at Lanjigarh has been put on hold. The 1.25 mt per annum aluminium smelter project in Jharsuguda is making good progress for progressive completion by Q3 of FY 2014.

OUTLOOK

They expect to increase volumes at their alumina refinery in Lanjigarh and improve operating performance at the new Jharsuguda smelter post stabilisation. They will continue to focus on value added products to optimise returns.

PERFORMANCE – ENERGY

Indian power sector is best characterized by a historical gap between demand and supply due to slow project development, lagging behind the increase in consumption led by robust economic growth. This gap is expected to remain in near to medium term, creating an attractive market for the supply of energy commercially.

STRATEGIC PRIORITIES

• Complete 2,640 MW project at Talwandi Sabo, Punjab

• Complete 2,400 MW project at Jharsuguda, Orissa

• Developed the Sterlite Energy Limited (SEL) coal block

• Participating in any new coal block auctions / allotments

OPERATIONAL PERFORMANCE

During the financial year 2011, they sold 2035 million units of power, compared with 1416 million units in the previous year. This growth in volume was mainly on account of surplus power sales from 270 MW power plant at BALCO and commissioning of first unit of 600 ,MW commencing power generation at Jharsuguda, SEL.

FINANCIAL PERFORMANCE

Revenue (net of inter-segment transfers) for the financial year 2011 was Rs. 7280.000 millions, compared with ` Rs. 6570.000 millions in the previous year and PBDIT for the FY 2010-11 was ` Rs. 3350.000 millions as against ` Rs. 4180.000 millions in the previous year. PBDIT was lower primarily due to higher operating costs, primarily coal and lower sales prices.

UNIT COSTS

Average power generation cost in the financial year 2010-11 was 1.77 per unit compared with 1.48 per unit in the financial year 2009-10, largely reflecting higher coal costs which were increased by 30% in February 2011, in addition of new green tax on coal.

PROJECTS

JHARSUGUDA IPP

First 600 MW unit of the 2,400 MW SEL Jharasuguda power plants was successfully commissioned in March 2011. Second unit is under trial run. The remaining two units are expected to be synchronized in Q3 and Q4 of the financial year 2011-12, respectively. Transmission lines are being set up to enhance existing transmission capacity to meet the requirements for new units to be commissioned, and are expected to be completed by Q3 of the financial year 2011-12.

TALWANDI SABO IPP

Work at the 2640 MW power project at Talwandi Sabo is progressing as per schedule. Seven shipments have been received, and construction of the first boiler structure is in progress.

WIND ENERGY

48 MW of the 150 MW expansions in wind power generation capacity announced in January 2011 was commissioned during the fourth quarter, and the remaining 102 MW is expected to be commissioned in the financial year 2011-12. Post the expansion, the Company’s wind power generation capacity will increase to 273 MW.

OUTLOOK

They plan to complete the ongoing projects on schedule and to continue to focus on improving coal logistics and expediting coal block development at SEL. SIIL has a long history of developing and operating captive power plants at benchmark capital expenditure cost and industry leading operating efficiency and they plan to exploit this track record in the construction of the IPP at Talwandi Sabo in the Punjab and the IPP at Jharsuguda, Orissa in addition to constructing a captive power plant at Korba. They will continue to sell surplus power in the commercial energy market, capitalizing on the accelerating demand for power in our home market.

OTHER BUSINESS

VIZAG COAL BERTH

To support their entry into the growing port and infrastructure sector in India they have secured a tender from Government of India’s Vishakapatnam Port Company. They will be constructing a coal berth on a revenue sharing basis in a joint venture with Leighton Contractors (India) Private Limited. The estimated cost of the project is ` 675 Crore and it is scheduled for completion by mid 2012.

OVERALL BUSINESS OUTLOOK

The medium and long term outlook for the resource sector remains positive. They have a strong growth pipeline and all their expansion projects are on track to deliver industry leading organic growth. They remain confident that They are on track to deliver superior results going forward.

AWARDS AND RECOGNITION

Subject has won the following awards and recognition during the year 2010-11.

BUSINESS:

• Indian Merchants Chambers (IMC) Ramkrishna Bajaj National Quality Award (RBNQA): Performance Excellence Trophy 2010 for both Tuticorin and Silvassa units manufacturing category. The award was in recognition of the Company’s excellence in senior leadership, strategic planning, customer and market focus, measurement analysis and knowledge management, human resource focus, process management and business results.

• Frost and Sullivan, India Manufacturing Excellence Award 2010: Platinum Award and Consistency Award for Silvassa. The award acknowledges excellence in their manufacturing process.

• International Team Excellence Award 2010: Finalist award for Tuticorin from American Society for Quality (ASQ) in recognition to the TQM Project Increasing the crane reliability from 56% to 94.54%.

• Sterlite Silvassa unit has bagged “Excellence in Energy Management 2010 “award from CII – Godrej GBC in recognition towards achieving improvements in Energy Management.

• IMC Ramakrishna Bajaj National Quality Award – Performance Excellence Trophy’ (RBNQA 2010); the ‘CII – National Water Management Award 2010’; the ‘CII - National Energy Management Award 2010’; and the ‘FIMI-Gem Granites Environment Award for the Year 2009-10 for our zinc mines and smelter. Outlook The recovery in demand and commodity prices backed by growth momentum in China, Brazil and India appears well founded. The medium and long-term outlook for the resource sector remains positive. They are well positioned to benefit from the upswing, benefited by their structurally low cost position. They have a well laid out growth pipeline and most of their expansion projects are on track to deliver an industry leading organic growth. They remain confident to deliver superior results as they are progressing.

BUSINESS DESCRIPTION

Subject is a metals and mining company. The Company operates in three segments: Copper, Phosphoric Acid and other business segment. Copper consists of manufacturing of copper cathode, continuous cast copper rod, anode slime and dore. The other business segment consists of Aluminium Foils. The Company’s commercial power generation business also includes the wind power plants. The Company’s principal operations are located in India, Australia, the United Arab Emirates, Namibia, South Africa and Ireland. Subject is the principal subsidiary of Vedanta Resources plc. During the fiscal year ended March 31, 2011 (fiscal 2011), the Company acquired the zinc assets of Anglo-American Plc. (Anglo Zinc). This acquisition consisted of the 100% owned Skorpion mine in Namibia, the 100% owned Lisheen mine in Ireland and the 74% owned Black Mountain Mines, which includes the Black Mountain mine and the Gamsberg project in South Africa. For the three months ended 30 June 2011, Subject revenues increased 38% to RS107.02B. Net income before extraordinary items increased 39% to RS16.40B. Revenue reflect a rise in income from Copper segment, higher income from aluminum segment and a rise in income from Zinc, Lead and Silver segment. Net income benefited from a fall in purchase of traded goods expenses, increase in operating margin.

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER 2011

(Rs. in millions)

Particulars	Quarter ended 30.09.2011 (Unaudited)	Half Year ended 30.09.2011 (Unaudited)
1 (a) Net Sales/Income from Operations	101338.400	199578.400
(b) Other Operating Income	618.600	985.600
Total Income	101957.000	200564.000
2 Expenditure
a. (Increase)/decrease in stock in trade and work in progress	13.800	(684.300)
b. Consumption of raw materials #	48176.400	92002.900
c. Purchases of traded goods	20.000	31.800
d. Employees Cost	3969.800	7820.100
e. Depreciation	4450.400	8650.500
f. Power, Fuel and Water	10567.600	20323.800
g. Other expenditure **	14389.100	28666.500
Total Expenditure	81587.100	156811.300
3 Profit from Operations before Other Income, Interest & Exceptional Items	20369.900	43752.700
4 Other Income ^	5972.400	14388.800
5 Profit before Interest & Exceptional Items	26342.300	58141.500
6 Interest & Finance Charges @	3558.600	5298.400
7 Profit after Interest but before Exceptional Items	22783.700	52843.100
8 Exceptional expenses	299.200	343.400
9 Profit from Ordinary Activities before tax after Exceptional Items	22484.500	52499.700
10 Tax expenses including Current & Deferred	5048.700	11186.000
11 Net Profit from Ordinary activities after Tax	17435.800	41313.700
12 Extraordinary Items (net of tax)	0.000	0.000
13 Net Profit for the period after Extraordinary Items	17435.800	41313.700
14 Minority Interest	5029.900	11449.800
15 Consolidated share in the profit and loss of associates	(2428.100)	(3488.800)
16 Net Profit after tax attributable to consolidated group after exceptional items	9977.800	26375.100
17 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
18 Reserves excluding Revaluation Reserves (As per previous year's Balance Sheet)
19 Earnings Per Share (Rs.) (Not annualised)*
-Basic EPS	2.97*	7.85*
-Diluted EPS	2.97*	7.85*
20 Public Shareholding (Excluding shares against which ADRs are issued)
- Number of Shares	1145329939	1145329939
- Percentage of Shareholding	34.07%	34.07%
21 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	1791871911	1791871911
- 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)	53.31%	53.31%

# comprises (net) of exchange (gain)/loss - Rs. 1904.900 millions in Q2 FY 2011-12 Rs.1776.500 millions in H1 FY 2011-12, Rs. (409.500) millions in Q2 FY 2010-11, Rs. (403.900) millions in H1 FY 2010-11and Rs. (367.000) millions in FY 2010-11

@ Comprises (net) of exchange (gain)/loss - Rs. 1282.200 millions in Q2 FY 2011, Rs. 1358.300) millions in H1 FY 2011-12, Rs. 209.000 millions in Q2 FY 2010-11, Rs. 195.000 millions in H1 FY 2010-11 and Rs. 193.700 millions in FY 2010.11

^ Comprises (net) of exchange (gain)/loss - Rs. 2029.400 millions in Q2 FY 2011, Rs. 1439.800) millions in H1 FY 2011-12, Rs. 29.000 millions in Q2 FY 2010-11, Rs. 232.100 millions in H1 FY 2010-11 and Rs. 34.400millions in FY 2010-11

@ Comprises (net) of exchange (gain)/loss - Rs. 2010.100 millions in Q2 FY 2011-12, Rs. 2284.900 millions in H1 FY 2011-12, Rs. 715.100 millions in Q2 FY 2010-11, Rs. 165.200 millions in H1 FY 2010-11 and Rs. 217.200 millions in FY 2010.11

$ The promoter and promoter group in addition to the equity shareholding also hold 4.92% of the equity capital in the form of ADR represented by 165487852 equity shares.

Segment Information	Quarter ended 30.09.2011 (Unaudited)	Half Year ended 30.09.2011 (Unaudited)
1 Segment Revenue
a) Copper	51294.100	96333.300
b) Aluminium	6855.300	14422.000
c) Zinc, Lead, and Silver	35688.700	74134.700
d) Power	6222.700	12369.100
e) Others	2247.100	3876.300
Total	102307.900	201135.400
Less: Inter Segment Revenues	969.500	1557.000
Net Sales/Income from Operations	101338.400	199578.400
2 Segment Results (Profit before tax & interest)
a) Copper	3090.300	6001.100
b) Aluminium	76.500	1670.400
c) Zinc, Lead, and Silver	16501.900	34627.800
d) Power	527.900	1393.600
e) Others	281.600	443.800
Total	20478.200	44136.700
Less : Interest & Finance Charges	3558.600	5298.400
Add: Other unallocable income net off expenses	5864.100	14004.800
Less: Exceptional expenses	299.200	343.400
Profit before Tax	22484.500	52499.700
3 Capital Employed (Segment Assets less Segment Liabilities)
a) Copper	63733.600	63733.600
b) Aluminium	87058.900	87058.900
c) Zinc, Lead, and Silver	137009.800	137009.800
d) Power	101821.800	101821.800
e) Others	2353.800	2353.800
f) Unallocable	161316.000	161316.000
Total	553293.900	553293.900

The main business segments are a) copper which consist of mining of copper concentrate, manufacturing of copper cathode , continuous cast copper rod, anode slime and dore b) Aluminium which consist of mining of bauxite and manufacturing of various aluminium products c) Zinc which consists of mining of ore, manufacturing of zinc and lead ingots and silver d) power which consists of power excluding captive power but including power facility predominantly engaged in generation and sale of commercial power e) other business segment comprise of phosphoric acid, paper, infrastructure etc. The assets and liabilities that cannot be allocated between the segments are shown as unallocated corporate assets and liabilities respectively.

STATEMENT OF ASSETS AND LIABILITIES

(Rs. in millions)

Particulars	As at 30.09.2011 (Unaudited)
SHAREHOLDERS’ FUNDS
(a) Share Capital	3361.200
(b) Reserves & Surplus	435592.600
© Minority Interest	114340.100
LOAN FUNDS	149427.800
DEFERRED TAX LIABILITY (Net)	22253.100
TOTAL	724974.800
FIXED ASSETS	345639.100
INVESTMENTS	123570.400
DEFFERED TAX ASSETS	117.700
CURRENT ASSETS, LOANS & ADVANCES
(a) Inventories	48151.200
(b) Sundry Debtors	20657.500
(c) Cash and Bank balance	103492.900
(d) Other Current Assets	3650.700
(e) Loans & Advances	137415.600
Less : Current Liabilities & Provisions
(a) Current Liabilities	63233.200
(b) Provisions	13387.100
Net Current Asset	236747.600
TOTAL	724974.800

NOTES:

1 The consolidated and standalone results for the quarter arid half year ended 30th September 2011 have been reviewed by Audit Committee at their meeting.

The Board of Directors at its meeting held air 24th October 2011 approved the above results and their release.

2. The Board declared an interim dividend of Re. 1 each on equity share of face value 0f Re. 1/- each (i.e @ 100 % ). The record date for the payment of interim dividend is 1st November 2011.

3. Exceptional expenses of Rs. 299.200 millions for the quarter and Rs. 343.400 millions for the half year ended 30th September 2011 represents amount incurred under Voluntary Retirement Scheme at a subsidiary engaged in Zinc, lead and Silver and Aluminium operations.

4. Consequent to acquisition of zinc business at Namibia, South Africa and Ireland in the second half of the FY 2010-11, the results for the quarter and half year ended 30th September 2011 are not strictly comparable with corresponding previous periods.

5. Consistent with the treatment followed in earlier years, investment in equity shares of a power Company has been considered as an intangible asset. This has resulted in an additional amortisation charge of Rs23.400 millions for the half year ended 30th September 2011 (corresponding previous half year Rs. 23.400 millions) and the net profit after tax for the half year ended 30th September 2011 being lower by Rs 15.600 millions(corresponding previous quarter Rs. 15.600 million). This treatment, being in preference to the requirements of Accounting Stundardu, has been reported by the auditors.

6. 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 3151 March 2008. Accordingly 4 % Convertible Senior Notes, issued in October 2009, hat 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 riot been adopted for this transaction, other income would have been lower by Rs 750.500 millions and Rs.1394.600 millions for the quarter and half year ended 30th September 2011, interest and finance charges would have been lower by Rs 260.700 millions and Rs. 618.200 millions for the quarter and half year ended 30th September 2011 and profit after tan would have been lower by Ru. 338.300 millions and Rs. 594.100 millions for the quarter and half year ended 30th September 2011 respectively.

7. On the Special Leave Petition (SIP) filed by the Company, Hon’ble Supreme Court of India vide order dated 01.10.2010 had stayed the operation of the judgement of Hon’ble Madras High Court directing closure of Copper Smelter Unit at Tuticorin. The Hon’ble Supreme Court has directed the Tamilnadu Pollution Control Board (TNPCB) to issue directions, to the copper smelter to implement the improvement measures suggested by National Environment Engineering Research Institute (NEERI), Central Pollution Control Board (CPCB) and TNPCB. The Supreme Court has directed that the case be listed in the first week of January 2012, Interim stay order granted by the Supreme Court continues and the unit continues to operate at rated capacity.

8. MnEF has rejected the forest clearance for Niyarngiri Mining lease of Orista Mining Corporation (OMC) which is one of the sources of supply of Bauxite to the alumina refinery of Vedanta Aluminium Limited (“VAL”), an associate of the Company. OMC has filed a petition in the Hon’ble Supreme Court and the hearing is fixed for January 2012. MOEP has also denied VAL’s application for expansion of alumina refinery, which was challenged by VAL before the Hon’ble Orissa High Court. The Hon’ble Orissa High Court has upheld the order of the M0. VAL has filed a review petition in the Hon’ble Orissa High Court for review of the judgment. The management of the Company has evaluated and considered good, its loans granted and investment made in VAL.

9. The Company has continued to account for its share of losses of its associate’s Company , Vedarita Aluminum Urnited ( VAL) even though the carrying amount of the equity investment under the equity method has reduced to Nil, The additional losses to the extent of Rs.2160.000 millions have been recognised in the above consolidated financial result as the Company intends to make additional equity Investment in VAL to maintain its share of holding in that company.

10. The net foreign exchange (gain)/loss recognised in the above results are as follows

Particulars	Quarter ended 30.09.2011 (Unaudited)	Half Year ended 30.09.2011 (Unaudited)
Net Foreign Exchange (Gain/Loss)	4662.200	4142.900

11. The above results are prepared in accordance wits the recognition and measurement principles laid down In Accounting Standard 25 (AS 25 — Interin Financial Reporting) and have been subjected to Limited Review by the Auditors of the Company.

12. The Company opted to publish only Consolidated Financial results. The standalone results of the Company will be available on Company’s website www.sterliteindustries.com. Additional information on standalone basis are as follows:

Particulars	Quarter ended 30.09.2011 (Unaudited)	Half Year ended 30.09.2011 (Unaudited)
Net Sales/ Income from Operations	47997.200	89694.400
Profit Before Tax after exceptional items	3767.100	8658.000
Profit After Tax extraordinary items	2571.700	6000.300

13. In terms of Clause 41 of the Listing Agreement, details of number of investor complaints for the quarter ended 30th September 2011: Beginning 0, Received 23, Disposed off 22, Pending I.

14. Previous Period/Year figures have been regrouped / rearranged / reworked I restated wherever necessary.

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. Subject 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

Board of Director

Anil K. Agarwal Non-Executive Chairman of the Board

Mr. Anil K. Agarwal is Non-Executive Chairman of the Board of Subject. He founded the Group in 1976, is Non-Executive Chairman and was appointed to board of directors in 1978. He was earlier the Chairman and Managing Director and CEO from 1980 till 2004. Mr. Agarwal was also the Chief Executive Officer of Vedanta from December 2003 to March 2005. Mr. Agarwal has over 35 years of experience as an industrialist and has been instrumental in the growth of the Company and its development since inception. He is a Director of several companies including Bharat Aluminium Company Limited, Sterlite Technologies Limited, Vedanta Aluminium Limited, Vedanta Resources Plc., UK, Sterlite Energy Limited, Anil Agarwal Foundation- Under Section 25 of the Companies Act, 1956.

Navin Agarwal Executive Vice Chairman of the Board

Shri. Navin Agarwal is Executive Vice Chairman of the Board of Subject and was appointed to board of directors in August 2003. His responsibilities as Executive Vice-Chairman include executing our business strategy and managing the overall performance and growth of the organisation. Mr. Agarwal joined the Company at its inception. Mr. Agarwal has over 25 years of experience in general management and commercial matters. Mr. Agarwal has completed the Owner / President Management Programme at Harvard University and has a Bachelor of Commerce from Sydenham College, Mumbai, India. He is a Director of several companies including: Bharat Aluminium Company Limited, Hindustan Zinc Limited, The Madras Aluminium Company Limited, Sterlite Industries (India) Limited, Sterlite Iron and Steel Company Limited, Sterlite Infrastructure Holdings Private Limited, Malco Power Company Limited, Malco Industries Limited, Vedanta Aluminium Limited, Hare Krishna Packaging Private Limited, Konkola Copper Mines, Plc, Vedanta Resources Plc., UK Vedanta Resources Holdings Limited, Vedanta Resources Investment Limited

Berjis Minoo Desai Non-Executive Independent Director

Mr. Berjis Minoo Desai is Independent Non-Executive Director of Subject since January 2003. Mr. Desai is Non- Executive Director and was appointed to Board of Directors in January 2003. Mr. Desai is a solicitor and is the managing partner of Messrs J. Sagar and Associates since April 2003 specialising in mergers and acquisitions, securities, financial and international business laws and international commercial arbitration. Prior to that, Mr. Desai was a partner at Messrs Udwadia, Udeshi and Desai from 1997 to 2003. Mr. Desai has a Bachelor of Arts and a Bachelor of Law from the University of Mumbai and a Master of Law from the University of Cambridge, UK. He is a Director of several companies including. The Great Eastern Shipping Company Limited, NOCIL limited, Praj Industries Limited, Edelweiss Capital Limited, Deepak Nitrite Limited, Himatsingka Seide Limited, Greatship (India) Limited, Emcure Pharmaceuticals Limited, ” JSA Law Limited, JSA Lex Holdings Limited, Centurm Fiscal Private Limited, Capricorn Studfarm Private Limited, Capricorn Agrifarms and Developers Private Limited

Gautam Bhailal Doshi Independent Non-Executive Director

Shri. Gautam Bhailal Doshi is Independent Non-Executive Director of Subject since December 2001. Mr. Doshi is Non - Executive Director and was appointed to Board of Directors in December 2001. He is also the Group Managing Director of the Reliance ADA Group Limited. Prior to that, he was a partner of RSM and Co. in India from September 1997 to July 2005. Mr. Doshi has more than 30 years of experience in the areas of audit, finance and accounting. Mr. Doshi has a Bachelor of Commerce and a Master of Commerce from the University of Mumbai and is a Fellow Member of the Institute of Chartered Accountants of India. He is a Director of several companies including, Sonata Investments Limited, Reliance Communications Infrastructure Limited, Reliance Life Insurance Company Limited, Reliance Media Works Limited, Reliance Anil Dhirubhai Ambani Group Limited, Reliance Big TV Limited, Reliance Telecom Limited, Piramal Life Sciences Limited, Digital Bridge Foundation (Sec. 25 Comp), Reliance Broadcast Network Limited.

Din Dayal Jalan Chief Financial Officer, Whole Time Director

Mr. Din Dayal Jalan is Chief Financial Officer, Whole Time Director of Subject. Mr. Jalan is presently Whole Time Director and CFO of the Company. He is also the CFO of Vedanta Resources Plc. also. Mr. Jalan joined subject in January 2001 as President of Australian operation responsible for its mining operation and moved to the position of CFO of SIIL and then to CFO of Vedanta Resources Plc. Mr. Jalan is a Chartered Accountant and has over 32 years of experience in leadership position of companies in engineering, mining and non-ferrous sector. He is a Director of several companies including, Subject Opportunities and Ventures Limited, Vedanta Resources Finance Limited, Vedanta Resources Cyprus Limited, Vedanta Resources Jersey Limited, Vedanta Resources Jersey II Limited, Vedanta Investment Jersey Limited, Sesa Resources Limited, Sesa Mining Corporation Limited, Thalanga Copper Mines Private Limited, Copper Mines of Tasmania Private Limited, Talwandi Sabo Power Limited, Vizag General Cargo Berth Private Limited, Paradip Multi Cargo Berth Private Limited, Twinstar Energy Holdings Limited, Twinstar Mauritius Holdings Limited, THL Zinc Ventures Limited, THL Zinc Limited, Pecvest 17 (Pty) Limited South Africa.

Sandeep Hemendra Junnarkar Independent Non-Executive Director

Shri. Sandeep H. Junnarkar is Independent Non-Executive Director of Subject since June 2001. Mr. Junnarkar is Non - Executive Director and was appointed to Board of Directors in June 2001. Mr. Junnarkar is a solicitor and a partner of Messrs Junnarkar and Associates. Prior to that, he was a partner at Messrs Kanga and Co. from 1981 until 2002. Mr. Junnarkar specialises in banking and corporate law and regularly advises on all aspects of exchange control under the Foreign Exchange Management Act, 1999, (FEMA), and the Securities Contracts (Regulation) Act, 1956 (SCRA). Mr. Junnarkar is a Bachelor of Law from the University of Mumbai and is also a member of the Bombay Incorporated Law Society. He is a Director of several companies including, Everest Industries Limited, Excel Crop Care Limited, IL and FS Infrastructure Development Corporation limited, Jai Corporation :Limited, Jai Realty Ventures Limited, Reliance Industrial Infrastructure Limited, Reliance Industrial Investments and Holdings Limited, Reliance Ports and Terminals Limited, Sterlite Energy Limited, Sunshield Chemicals Limited.

PRESS RELEASE

UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER 2011

Mumbai: Sterlite Industries (India) Limited (“SIIL” or the “Company”) today announced its unaudited consolidated results for the Second Quarter (“Q2”) and Half Year (“H1”) ended 30 September 2011.

HIGHLIGHTS OF THE QUARTER

Operational Performance

• Refined Zinc-Lead metal production up 5% at 201821 tonnes
• Refined Silver production up 12% at 49274 kg
• Commissioned the 100 ktpa Dariba Lead smelter, taking the Zinc - India capacity to 1.064 mtpa
• Stable operations at Zinc International

Financial performance

• PBDT up 29% at Rs.26930.000 millions Rs.5300.000 millions contributed by Zinc International
• Strong balance sheet with cash and liquid investments of Rs.226910.000 millions
• EPS of Rs.3 per share
• Interim Dividend of Rs1 per share.

(Rs. In Millions)

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Net Sales/Income from operations	101340.000	60290.000	68.1	199580.000	119530.000	67.0
Profit before interest, depreciation & taxes	30490.000	20860.000	46.1	66450.000	42600.000	55.9
Interest	3560.000	0.000		5300.000	1270.000
Profit before depreciation and taxes (PBDT)	26930.000	20860.000	29.1	61150.000	41340.000	47.9
Depreciation	4450.000	2120.000		8650.000	4290.000
Taxes	5050.000	4560.000		11190.000	8240.000
Profit After Taxes	17440.000	14180.000	23.0	41310.000	28810.000	43.4
Minority Interest	5030.000	3850.000		11450.000	7610.000
Share in Profit/(Loss) of Associate	(2430.000)	(250.000)		(3490.000)	(1030.000)
Attributable PAT after exceptional item	9980.000	10080.000	(1.0)	26370.000	20160.000	30.8
Earnings per Share (EPS) (Rs. /share)*	30.000	30.000		78.000	60.000

*Not Annualised

ZINC INDIA BUSINESS

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Production (in Kt, except for silver)
Mined Metal	210	205	2.4	398	387	2.9
Refined Metal – Zinc	185	176	4.9	378	341	10.8
Refined Metal – Lead*	17	16	5.2	33	31	5.4
Silver (in 000’s Kgs)	49	44	12.1	96	87	10.1
Financials
Revenue (Rs. Millions )	25600.000	21460.000	19.3	53440.000	40730.000	31.2
PBDT (Rs. Millions)	17750.000	12650.000	40.2	36730.000	24180.000	51.9
PAT (Rs. Millions)	13300.000	9410.000	41.3	28090.000	18260.000	53.8
CoP with Royalty ($/MT)	1036	976	6.1	1050	997	5.3
Zinc LME ($/MT)	2224	2013	10.5	2236	2015	11.0
Lead LME ($/MT)	2459	2032	21.0	2503	1989	25.8

(1) Includes captive consumption of 1348 tonnes and 2739 tonnes in Q2 FY2012 and H1 FY2012, as compared with 1646 tonnes and 2812 tonnes in corresponding prior periods, respectively.

(2) Includes captive consumption of 7193 kg and 14389 kg in Q2 FY 2012 and H1 FY 2012, as compared with 8612 kg and 14745 kg in corresponding prior periods, respectively.

Mined metal production in Q2 was 209,676 tonnes, up 2% as compared with the corresponding prior quarter.

Refined Zinc production in Q2 was 184,816 tonnes, up 5% as compared with the corresponding prior quarter, primarily on account of improved operational performance at our hydro smelte Rs. Refined Lead production in Q2 was 17,005 tonnes, up 5% as compared with the corresponding prior quarter This was primarily due to volume contribution from the new 100kt Dariba Lead smelter which was commissioned and capitalized during the quarter.

Refined Silver production in Q2 was 49,274 kg, up 12% as compared with the corresponding prior quarter. The increase in production was mainly attributable to higher silver content in the mined ore and improved plant efficiencies.

Revenues and Profit before Interest Depreciation and Taxes (“PBDT”) for Q2 were Rs. 25600.000 millions and Rs. 17750.000 millions respectively, an increase of 19.3% and 40.2%, compared with the corresponding prior quarter. The increase was primarily on account of increased volumes and improved Zinc-Lead LME and Silver prices.

The Zinc cost of production, excluding royalty, during the quarter was Rs. 38,800 per MT ($847), marginally higher compared with the corresponding prior quarter. The positive impact of operational efficiencies was more than offset by the impact of increase in commodity inputs.

During Q2, average Zinc and Lead LME prices were $2,224 per tonne and $2,459 per tonne respectively, compared with $2,013 per tonne and $2,032 per tonne, in the corresponding prior quarter.

The average Silver Cash Settlement Price per London Bullion Market Association increased to $38.80/ozin Q2 FY2012 from $18.97/oz in the corresponding prior quarter.

Exploration

We continue to maintain our focus on mine exploration, which will be the key driver of our future growth. In the last 7 years, exploration activities have added 167 mt, net of depletions, to our reserve & resource base. We are currently exploring over 6,200 sq km area in 10 ‘Reconnaissance Permits’ (RPs). Our total reserves and resources base as of 31st March 2011 is 313.2 mt containing 34.7 mt of Zinc-Lead metal and 885 million ounces of Silver, ensuring long mine life of 25+ yeaRs.

Expansion Projects

Ramp-up of the Sindesar Khurd mine is on track to achieve its targeted 2.0mtpa capacity by the end of the year. The 100ktpa Dariba Lead smelter was commissioned during the quarter, taking the total refining capacity for Lead to 185ktpa. The new Silver refinery of 350tpa is scheduled to be commissioned in Q3 FY2012. The mining work at underground Kayar mine has commenced and we expect it to start first ore production in FY 2013-14.

Interim Dividend by HZL

Sterlite’s subsidiary, Hindustan Zinc Ltd, has announced an interim dividend of 75% i.e. Rs. 1.50 per share on equity share of Rs 2.00 each

ZINC INTERNATIONAL BUSINESS

Particulars	Quarter ended 30 September	Quarter Ended 30th June	Change
	2011	2011	%
Production (Kt)
Mined Metal Content (MIC)- BMM and Lisheen *	77	80
Refined Metal content – Skorpion	37	39
Total	114	119	(4.2)
Financials
Revenue (Rs. Millions)	11600.000	10600.000	9.4
PBDT (Rs. Millions)	5300.000	5220.000	1.5
PAT	3420.000	3170.000	7.8
CoP – ($ per MT)	1242	1189	4.5
Zinc LME ($/MT)	2224	2250	(1.2)
Lead LME ($/MT)	2459	2550	(3.6)

• *Includes Lead MIC production of 20,574 tonnes and 23,934 tonnes in Q2 FY 2012 and Q1 FY 2012 respectively, considered as by product.

The total equivalent zinc-lead production was 114,000 tonnes in Q2. This comprised production of zinclead concentrate of 77,000 tonnes MIC in Q2 at BMM and Lisheen, and refined zinc production of 37,000 tonnes at Skorpion.

Revenues and PBDT for Q2 were Rs. 11600.000 Millions and Rs. 5300.000 Millions respectively, an increase of 9.4% and 1.4% respectively, compared with the corresponding prior quarter.

COPPER BUSINESS

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Production (kt)
Mined Metal Content	5	7	(28.5)	11	13	(15.3)
Cathodes	87	68	28.1	161	144	11.2
Financials
Revenue (Rs. millions )	55750.000	35260.000	58.1	104280.000	71210.000	46.4
PBDT (Rs. millions)	4770.000	6540.000	(27.0)	10850.000	13510.000	(19.7)
PAT	2940.000	4430.000	(33.6)	6870.000	9170.000	(25.0)
Net CoP – cathode (¢/ lb)	(3.7)	7.3		(3.3)	7.1
Tc/Rc (¢ / lb)	13.0	11.7	11.0	13.4	12.7	6.2
LME ($/MT)	8982	7242	24.0	9057	7131	27.0

During Q2, the Tuticorin copper smelter produced 87,000 tonnes of copper cathode, 28% higher than the corresponding prior quarter. Production in the prior year period was lower on account of a planned bi-annual maintenance shut-down. Mined metal production at Australia was 5,000 tonnes in Q2.

Revenue and PBDT for Q2 were Rs.55750.000 Millions and Rs.4770.000 millions respectively, an increase of 58% and decrease of 27% respectively, compared with the corresponding prior quarter. Higher operational efficiencies and higher realisation on by-product and acid sales was more than offset by Mark to Market loss on foreign exchange fluctuation on borrowings.

The effective tax rate at copper India operations increased to 32% in Q2 from 27% in the corresponding prior period, due to expiry of tax incentive on export oriented units.

In Q2, net cost of production was (3.7) c/lb compared with 7.3 c/lb in the corresponding prior period. The decrease in net cost of production was on account of by-product credits, higher volumes and improved metal recovery.

Despite improved operational performance, the PAT was lower on account of unprecedented depreciation of Indian Rupee which resulted in a loss of Rs. 3045.500 Millions in Q2. On the Special Leave Petition (SLP) filed by the Company, Hon'ble Supreme Court of India vide order dated 01.10.2010 had stayed the operation of the judgement of Hon'ble Madras High Court directing closure of Copper Smelter Unit at Tuticorin. The Hon’ble Supreme Court has directed Tamil Nadu Pollution Control Board (“TNPCB”) to issue directions, to the copper smelter to implement the improvement measures suggested by National Environment Engineering Research Institute, Central Pollution Control Board and TNPCB. The Court has directed that the case be listed in the first week of January 2012. Interim stay order granted by the Hon’ble Supreme Court continues and unit continues to

operate at rated capacity.

The Tuticorin smelter has been operating for more than 12 years and is committed to employing environmentally friendly technologies and would work in close co-ordination with the agencies to ensure proper implementation of improvement measures suggested by them.

Expansion Projects

The construction of the captive power plant at Tuticorin is progressing well and the first unit is scheduled for commissioning in Q4 FY2011-12. The 400 ktpa copper smelter expansion project at Tuticorin is awaiting consent from the TNPCB.

ALUMINIUM BUSINESS (BALCO)

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Production (Kt)
Aluminium	60	64	(7.1)	121	127	(4.6)
Financials
Revenue (Rs. Millions)	6860.000	7180.000	(4.5)	14420.000	13840.000	4.2
PBDT (Rs. Millions)	370.000	1660.000	(77.6)	2500.000	2580.000	(3.2)
PAT (Rs. Millions)	(170.000)	640.000		1280.000	940.000
CoP ($/MT)	2133	1748	22.0	2036	1780	14.4
LME ($/MT)	2399	2089	14.8	2495	2090	19.4

The BALCO aluminium smelter continues to operate at its rated capacity and the aluminium production was 60,000 tonnes during the quarter.

PBDT for Q2 was Rs. 370.000 millions compared with Rs. 1660.000 millions in the corresponding prior quarter due to higher COP. During Q2, the COP of hot metal produced was at $2,133 per tonne, 22.0% higher compared with the corresponding prior quarter. The increase in cost was primarily due to increase in prices of alumina and higher carbon costs.

PAT was lower on account of unprecedented depreciation of Indian Rupee which resulted in a loss of Rs. 31.77 crore in Q2.

Expansion Project

The first unit of BALCO 1,200MW (4x300MW) captive thermal power plant is expected to be synchronised in Q3 of FY 2011-12. Work at the 325 kt aluminium smelter project at Korba is progressing well, and we target first metal tapping in Q4 FY2011-12.

INVESTMENT IN ASSOCIATE - VEDANTA ALUMINIUM LIMITED

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Alumina (Mt)	228	187	21.9	451	377	19.6
Aluminium (Mt)	89	97	(8.2)	201	174	15.5
Financials
Revenue (Rs. Millions)	11980.000	12720.000	(5.8)	26960.000	2324	16.0
PBDT (Rs. Millions)	(6240.000)	(1960.000)		(7850.000)	(2780.000)
PAT (Rs./ Millions)	(823.000)	(840.000)		(11830.000)	(3500.000)
SIIL Share (Rs. Millions)	(243.000)	(250.000)		(3490.000)	(1030.000)
Alumina COP ($/MT)	381	328	16.3	364	322	13.0
Aluminium COP ($/MT)	2554	1853	37.8	1847	1847	31.4

Aluminium production in Q2 was at 89,000 tonnes, post the pot outage in Q1 at the 500 ktpa Jharsuguda-I smelter. At Jharsuguda-I, we remain on track to return to normal capacity by the end of Q3 FY 2011-12 and approximately 115 of the 170 affected pots had been restarted by the end of Q2. Alumina production at Lanjigarh was 228,000 tonnes in Q2, up 21.4% compared with the corresponding prior periods.

Revenue for Q2 wereRs.11980.000 millions During the quarter, there was a loss of Rs. 6240.000 millions The PBDT was lower on account of increase in cost of production and higher finance cost on account of Mark to Market loss on foreign exchange fluctuation on borrowings. The interest and finance charges during Q2 were Rs. 6258.900 millions which includes loss (net) due to currency fluctuation of Rs 2088.000 millions

The average COP for alumina in the quarter was US $381 per tonne, higher by 16.3% compared with the corresponding prior quarter. The increase in CoP was on account of higher bauxite transportation costs and lower quality bauxite.

The COP of hot metal produced during the quarter was at US $2,554 per tonne, higher by 37.8% compared with the corresponding prior quarter. The increase was mainly on account of increase in power & Alumina cost. Cost of power was higher on account of higher coal procurement prices and purchase of power in open access due to shortage of coal from mines.

The 1.25 mtpa Jharsuguda-II smelter project is in the final stages of completion, and we continue to evaluate the option of selling power versus producing aluminium at this smelter.

STATUS OF INVESTMENT IN ASSOCIATE COMPANY AS AT 30 SEP 2011

Investment In VAL (Rs. In Millions)	Sterlite	Vedanta	External	Total
Equity	5630.000	13910.0000	NA	19540.000
Quasi Equity / Debt	89390.000	45860.000	15603.000	291280.000
Total funding	95020.000	59770.000	15603.000	310820.000

In addition, Vedanta Resources Plc and Sterlite have extended Corporate guarantees to VAL for an amount of Rs 26076.000 millions and Rs 45380.000 millions respectively.

ENERGY BUSINESS

Particulars	Quarter ended 30 September		Change	Half Year Ended 30 September		Change
	2011	2010	%	2011	2010	%
Merchant sales (Mn units)
SEL *	1134	--		2146	-
Balco 270 MW	387	362	6.9	811	774	4.7
WPP	94	52	82.1	200	120	66.1
Total	1615	414	290.1	3156	894	253.0
financials
Revenue (Rs. Millions)	6010.000	1430.000	320.0	12020.000	3820.000	214.6
PBDT (Rs. Millions)	1090.000	690.000	57.9	2500.000	1950.000	28.3
PAT (Rs. Milions)	230.000	420.000	(45.2)	730.000	1350.000	(45.9)
CoP (Rs./ unit)	2.7	1.8	50.0	2.6	2.0	30.0
Net Realisation (Rs./unit)	3.5	3.4	2.9	3.6	1.3	16.3

*156 MU and 295 MU generated under trial run in Q2 2011 and H1 2011 respectively.

Power sales were 1,615 million units during the quarter, significantly higher compared with 414 million units in the corresponding prior quarter. Higher power sales was mainly on account of sales from two 600 MW units at the 2,400 MW Jharsuguda power plant.

Revenue and PBDT for Q2 were Rs.6010.100 millions and loss of Rs.1090.000 millions respectively, an increase of 320.3% and 57.9% compared with the corresponding prior quarter. Increase in revenue was on account of higher sales from two units of 600 MW each commissioned in March and May 2011.

During Q2, the generation cost at SEL was Rs 2.9 per unit as against the Rs 2.8 per unit in Q1 of 2011-12. Coal supplies to Jharsuguda were adversely affected due to heavy rainfall in the coal belt, affecting our ability to generate power at our rated capacity.

EXPANSION PROJECTS

Work on remaining two 600 MW units at the 2,400 MW Jharsuguda power plant is progressing well and the units are expected to be synchronized in Q3 and Q4 of FY2011-12, respectively.

Work on the Talwandi Sabo power project is progressing as scheduled. The project will now comprise 1,980 MW (660 MW*3) as originally planned and we will not build the 4th (merchant) unit

We have commissioned 105MW of the 150MW expansion in wind power generation capacity announced in January 2011. The balance capacity is expected to be commissioned in Q3 FY2012. Post the expansion, the Company’s wind power generation capacity will increase to 273MW

DEPRECIATION

Depreciation and amortization cost for the quarter is higher at Rs. 4450.000 millions as compared to Rs. 2120.000 millions during the corresponding prior quarter due to capitalisation of Dariba lead smelter at Zinc – India operations, wind power project and two units of 600 MW at SEL, Jharsuguda besides Rs 1420.000 millions charged during the quarter on the assets of our Zinc International business.

INCOME TAX

Effective tax rate was at 22.5% for the current quarter compared to the 24.3% corresponding prior period.

CASH, CASH EQUIVALENTS AND LIQUID INVESTMENTS

Company follows a conservative Investment Policy and invests in high quality Debt instruments in the form of mutual funds and fixed deposit with banks. As at 30 September 2011, the Company had cash and cash equivalents of Rs. 226910.000 millions, out of which Rs. 123420.000 millions was invested in debt mutual funds and Rs. 103490.000 millions was in fixed deposits and the balance with Banks.

INTERIM DIVIDEND

The Board of Directors have recommended an interim dividend of Rs. 1 per share (i.e. 100%) on equity share of Rs 1.00 each. The record date for payment of dividend is 1 November 2011.

BORROWINGS

Company had a total borrowings of Rs 149430.000 millions as on 30 September 2011.

FOREIGN CURRENCY LOSSES

Due to unprecedented depreciation of Indian Rupee, the net impact of foreign currency exchange fluctuations during the quarter resulted in a loss of Rs 4660.000 millions

ABOUT STERLITE INDUSTRIES

Subject is India’s largest diversified metals and mining company. The company produces aluminium, copper, zinc, lead, silver, and commercial energy and has operations in India, Australia, Namibia, South Africa and Ireland. The company has a strong organic growth pipeline of projects. The company is setting up 5,040 MW independent thermal power plants through its 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.

Indian stocks close 2.6 pct lower

Xinhua News Agency

21 November 2011

MUMBAI, Nov. 21 (Xinhua) -- The Indian stock benchmark Sensex closed 425.41 points or 2.6 percent down Monday on losses of global stock markets.

The index extended its losses in the second half of the session and concluded at 15,946.10 points with daily low at 15,900.30 points.

Metal, banking, realty and power sector lost 3.46 percent, 3.24 percent, 3.04 percent and 2.72 percent, respectively.

Tata Motors, heavy machine maker BHEL, ICICI Bank and copper refiner Sterlite Industries plunged 5.2 percent, 5.04 percent, 4.9 percent and 4.85 percent.

The turnover with Sensex totaled 163million U.S. dollars Monday from 166.7 million U.S. dollars in the previous session.

Sensex is the common name for the Bombay Stock Exchange Sensitive Index. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange.

D-Street besieged as rupee nosedives; benchmarks crack below crucial levels

Accord Fintech (India)

21 November 2011

India, Nov. 21 -- The November series F and O contract expiry week got off to a dispiriting beginning as the benchmark equity indices got bludgeoned by over two and half a percent in the session and extended the sorrow of closing in the negative terrain for the eighth straight session. The frontline indices' southbound journey only halted with the close of the trading session and the key gauges even slipped below the psychological 16,000 (Sensex) and 4,800 (Nifty) levels as market participants continued to remain concerned about the prospects of risky asset classes like equities amid signs of slowing domestic economic growth and sluggish policy initiatives and debt crises in the US and Europe. Jitters over the uncontrollable sovereign debt from both sides of the Atlantic continued to arrest any potential upswing for bourses around the world. Sentiments were undermined by political bickering in Europe over the ways to avert the sovereign debt debacle and worries that the US is heading for economic crisis after Congressional leaders' talks on a sweeping deficit agreement were heading for failure. Local benchmarks were among the worst performers among major European and Asian markets. Asian markets snapped the session with deep cuts after Singapore warned of a slowdown next year because of slowing exports while Japanese trade data showed that world's third largest economy unexpectedly registered a trade deficit in October as the nation's exports declined for the first time in three months. Furthermore, the rupee breached the psychological 52 mark against the US dollar, an all time closing low for the local currency and continued to adversely impact the importers. The currency hit fresh 32-month lows against the dollar despite reports suggesting that the RBI has intervened in the currency markets to stall the slide in rupee. Meanwhile sentiments also took a hit after a CII survey showed that manufacturing sector growth moderated in the first half and is likely to slow down further in the ongoing quarter because of the rise in input costs and uncertainties in the global economy. Earlier on Dalal Street, the benchmark got off to a sluggish opening since sentiments remained weak following the pessimism prevailing in Asian markets. Thereafter, the bourses treaded on a southbound journey and showed absolutely no signs of recovery through the session. The selling pressure aggravated from the mid noon trades as European markets collapsed to trade with large cuts of over two percent. The key gauges eventually shut shops with huge losses around the lowest levels of the day. The NSE's 50-share broadly followed index Nifty got slaughtered by over two and half a percent to settle below the crucial 4,800 support level while Bombay Stock Exchange's Sensitive Index, Sensex deposed over four hundred points and closed below the psychological 16,000 mark. Moreover, the broader markets continued to bear the brunt of hefty position squaring and suffered cuts of close to two percent but outperformed their larger peers. On the BSE sectoral space, the Metal index remained the top laggard in the space with about three and half a percent losses. The rate sensitive Bankex and Realty pockets too went home with cuts of over three percent. Though, there appeared no gainer in the sectoral space however, individual stocks like Maruti Suzuki and Sun Pharma went home with marginal gains. The markets declined on large volumes while the turnover for NSE F&O segment too remained on the higher side as it was the first day of F&O expiry week. The market breadth remained abysmal as there were 786 shares on the gaining side against 1974 shares on the losing side while 135 shares remained unchanged. Finally, the BSE Sensex plummeted by 425.41 points or 2.60% to settle at 15,946.10, while the S&P CNX Nifty shaved off 127.45 points or 2.60% to close 4,778.35. The BSE Sensex touched a high and a low of 16,297.03 and 15,900.30 respectively. The BSE Mid cap and Small cap index down by 1.86% and 1.68% respectively. The major gainers on the Sensex were Maruti Suzuki up 0.20% and Sun Pharma up 0.14%. While, Tata Motors down 5.20%, BHEL down 5.04%, ICICI Bank down 4.90%, Sterlite Industries down 4.85% and DLF down 4.23% were the major losers on the index.There is no gainer on the BSE sectoral space. While Metal down 3.46%, Bankex down 3.24%, Realty down 3.04%, Power down 2.72% and Auto down 2.68% were the major losers on the BSE sectoral space. Meanwhile, growth in the manufacturing sector has moderated in the first half of current financial year compared to the corresponding period of the last financial year, and it is likely to slow down further in the ongoing quarter because of increase in input cost and uncertainties in the global economy. 'The manufacturing sector has observed moderation in growth during April-Sep 2011 compared to the corresponding period of the previous year. The industry expects further moderation in growth in the third quarter -- Oct-Dec 2011,' said a Confederation of Indian Industry (CII) Ascon survey.The survey further stated that the number of sectors recording excellent and high growth is expected to decline and shift to moderate growth category. Out of 103 sectors covered by the survey, those reporting excellent growth of more than 20% declined to 10.6% in April-September 2011 compared to 35.7%� in April-September 2010. During April-September 2011, 43.6% sectors recorded a moderate growth rate compared to 38.9% sectors in the previous period. The percentage of sectors with high growth rate has increased from 16.7% in April-September 2010 to 24.2% in the same quarter in 2011. The sectors registering a negative growth rate have increased significantly to 21.3% from a low of 8.7%, which is a clear sign of decelerating growth. The CII survey also showed that further slowdown in growth with a larger number of sectors is declining in the moderate category of growth of 0-10%. Out of 85 sectors covered by the survey for the period Oct-Dec 2011, the percentage of sectors reporting excellent growth of more than 20% is expected to decline to 7% from 10.4% in July-September 2011 and 20.7% in April-June 2011.As per the Index of Industrial Production (IIP), the manufacturing sector grew by just 5.4% in the first six months of 2011-12, compared to 8.8% in corresponding period of 2010-11. And in September 2011, it grew a modest 2.1% compared to 6.9% in September 2010.� Chandrajit Banerjee, director general of CII said, 'high input and capital cost and uncertainties in the global economy are the major factors constraining growth of the manufacturing sector. These issues need to be addressed at the earliest to help industry overcome the ongoing decelerating growth phase.While the categories like basic goods, intermediate goods, capital goods and consumer non-durables have fewer sectors in the excellent and high growth brackets, consumer durables have a larger share of sectors growing at a high rate. The worst performing category is intermediate goods that have a maximum number of sectors expected to record negative growth. The S and P CNX Nifty touched a high and low of 4,873.80 and 4,764.80 respectively. The top gainers on the Nifty were Maruti Suzuki up 0.79%, Coal India up 0.45%, Sun Pharma up 0.28% and HUL up 0.04%. On the flip side, SAIL down 6.57%, Sesa Goa down 5.99%, Cairn down 5.96%, DLF down 4.92% and Tata Motors down 4.76% were the top losers on the index. The European markets were trading in deep red. France's CAC 40 down 2.43%, Britain'sFTSE 100 down by 2.11%, and Germany's DAX down by 2.55%.Carnage continued in the Asian region on fifth straight session as Europe's debt crisis continued to undermine sentiment, with banks and commodity plays leading the region's decline, while an unexpected trade deficit for Japan further hurt exporter shares in Tokyo. Moreover, uncertainty over debt crisis and an apparent failure by US politicians to agree on deficit reduction too hurt the sentiment. The US congressional deficit-reduction committee was set to formally announce its three-month-long effort to bridge partisan differences over taxation and spending has failed. Investor confidence also dampened when China and Singapore painted a bleak picture of the global economy, with uncertainty over deficit-reduction negotiations in the US adding to the gloom. Markets also reacted to news Japan logged an unexpected trade deficit in October, while business hub Singapore predicted sharply lower economic growth next year and warned a weaker global economy could worsen the situation. Asian Indices Last Trade Change in Points Change in % Shanghai Composite 2,415.13 -1.43 -0.06 Hang Seng 18,225.85 -265.38 -1.44 Jakarta Composite 3,679.83 -74.67 -1.99 KLSE Composite 1,434.08 -20.32 -1.40 Nikkei 225 8,348.27 -26.64 -0.32 Straits Times 2,697.98 -32.36 -1.19 Seoul Composite 1,820.03 -19.14 -1.04 Taiwan Weighted 7,042.64 -191.14 -2.64

D-Street suffers yet another brutal assault; Nifty cracks below 5,000 mark

Accord Fintech (India)

17 November 2011

India, Nov. 17 -- Fragile Indian stock markets have taken yet another nasty laceration on Thursday as prolonged position squaring once again remained the order of the day and investors at large looked to avoid long positions. The session turned to be a tumultuous one for the benchmarks which got thrashed for the sixth straight session of trade to end on an extremely abysmal note after suffering close to two percent losses. Sovereign bond yields on the 10-year Spanish and French bonds spiked to Euro-era record highs which sent shockwaves across the bourses in the late hours of trade as the frontline indices drifted to their lowest levels in six weeks. Marketmen remained nervous ahead of French and Spanish bond auctions scheduled later in the day. Domestic benchmarks seem to have taken turn for the worse after being brutally butchered in the session and breaching the crucial psychological levels of 5,000 and 16,500. The notable moderation in India's weekly inflation numbers too failed to underpin sentiments. India's food inflation declined for the second consecutive week to 10.63% in the week ended November 05. Meanwhile the RBI Deputy Governor Subir Gokarn opined the central bank will not relax the quantum of deposits banks have to park with the central bank, dubbed the cash reserve ratio (CRR), to ease current liquidity pressures. Reports that empowered group of ministers (EGoM) on food, headed by Finance Minister Pranab Mukherjee is likely to meet on November 21 for considering a proposal to allow sugar exports for this marketing year that started last month, too failed to prop up shares from the sugar industry as shares of companies including Shree Renuka, Balrampur Chini, Bajaj Hindusthan plunged in the session.Earlier on Dalal Street, the benchmark got off to a quiet opening since sentiments remained cautious following the pessimism prevailing in Asian markets. Thereafter, the bourses failed to capitalize on the early momentum and kept see-sawing around the neutral line in an extremely tight range for most part of the day. However, the key gauges suffered a setback in the last leg of trade as sudden bouts of profit booking emerged in the local markets following the somberness prevailing in� European markets, post which the indices could not stage any kind of recovery and extended the sorrow of closing in the negative territory for the sixth straight session. Eventually the NSE's 50-share broadly followed index Nifty, plummeted by close to two percent to settle below the crucial 4,950 support level while Bombay Stock Exchange's Sensitive Index Sensex deposed over three hundred points and closed below the psychological 16,500 mark. Moreover, the broader markets continued bearing the brunt of hefty position squaring and suffered nasty lacerations of over a percent but outperformed their larger peers. On the BSE sectoral space, the Oil & Gas index remained the top laggard in the space and got heavily pulverized by over three percent after heavyweight RIL nosedived by a massive over four and half a percent. The Power and Metal pockets too went home with huge cuts of around two and half a percent. Though there appeared no gainer in the sectoral space thanks to the across the board sell-off however, individual stocks like Hero Moto and drug makers like Cipla and Sun Pharma went home with some gains. The markets declined on large volumes of close to Rs 1.9 lakh crore while the turnover for NSE F&O segment were on the higher side as compared to Wednesday at over 1.73 lakh core. The market breadth remained abysmal as there were 899 shares on the gaining side against 1937 shares on the losing side while 106 shares remained unchanged.Finally, the BSE Sensex plunged by 314.16 points or 1.87% to settle at 16,461.71, while the S&P CNX Nifty shaved off 95.70 points or 1.90% to close 4,934.75. The BSE Sensex touched a high and a low of 16,807.15 and 16,408.50 respectively. The BSE Mid cap and Small cap index down by 1.30% and 1.15% respectively. The major gainers on the Sensex were Hero MotoCorp up 0.71%, Cipla up 0.42% and Sun Pharma up 0.25%. While, Jaiprakash Associates down 6.49%, Reliance down 4.51%, Maruti Suzuki down 4.44%, BHEL down 4.37% and Sterlite Industries down 4.02% were the major losers on the index.There were no�gainer on the BSE sectoral space. While Oil & Gas down 3.39%, Power down 2.86%, Metal down 2.48%, Realty down 2.40% and Capital Goods (CG) down 2.19% were the major losers on the BSE sectoral space. Meanwhile, India's weekly food inflation measured by the Wholesale Price Index (WPI), despite easing for the second consecutive week at 10.63% for week ended on November 05 compared to 11.81% in the last week, remained in double digits. This decline in food inflation came even after the prices of agricultural items, barring onions and wheat, continued to rise on an annual basis.According to the data released by the Ministry of Commerce and Industry, the index for 'Food Articles' group declined by 0.9% to 199.8 (Provisional) from 201.7 (Provisional) for the previous week due to� lower prices of fish-inland (5%), masur (4%), poultry chicken (3%), fruits and vegetables (2%) and ragi, urad, maize, gram, wheat and condiments & spices (1% each).� However, the prices of bajra (3%), jowar (2%) and tea (1%) moved up.Even the index for 'Non-Food Articles' group declined by 0.9% to 175.9 (Provisional) from 177.5 (Provisional) for the previous week due to lower prices of logs and timber (17%), mesta (10%), flowers (6%), raw rubber and rape and mustard seed (3% each) and raw jute (2%). However, the prices of castor seed (5%), sunflower (2%) and soyabean, linseed and gaur seed (1% each) moved up.As a result the index for 'Primary Articles' which accounts for 20.12% of the WPI declined by 0.8% to 203.0 (Provisional) from 204.7 (Provisional) for the previous week. The annual rate of inflation, calculated on point to point basis, stood at 10.39% (Provisional) for the week ended November 05, 2011 as compared to 11.43% (Provisional) for the previous week.Meanwhile, the index for 'Fuel and Power' group, which accounts for 14.91% of WPI, rose by 1% to 171.5 (Provisional) from 169.8 (Provisional) for the previous week due to higher prices of aviation turbine fuel (6%), furnace oil (5%), naphtha (4%) and light diesel oil and petrol (3% each). Concerned over the inflationary spiral, the government said, it is taking steps to remove supply bottlenecks and expects prices to ease from December. 'We are taking care to remove the supply constraints and I do hope from the month of December, inflation pressure would be moderate,' Finance Minister Pranab Mukherjee said. Headline inflation, which also factors in manufactured items, has been above the 9 percent-mark since December, 2010. It stood at 9.73% in September this year. The RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation.The S and P CNX Nifty touched a high and low of 5,036.80 and 4,919.45 respectively. The top gainers on the Nifty were Reliance Infra up 1.14%, Hero MotoCorp up 0.94%, Sun Pharma up 0.73%, Cipla up 0.18% and TCS up 0.07%. On the flip side, JP Associate down 6.43%, Ranbaxy down 5.29%, Sesa Goa down 4.90%, Reliance down 4.85% and Maruti Suzuki down 4.68% were the top losers on the index. The European markets were trading in red. France's CAC 40 down 1.56%, Britain'sFTSE 100 down by 1.14%, and Germany's DAX down by 0.67%.Turmoil of Asian region continued for yet another session and most of the Asian peers witnessed downfall on Thursday after two ratings agencies sounded alarm bells over the potential impact of the Euro zone debt crisis on major banks. However, most of the Asian equity indices pared their earlier losses, with some indexes finished in the positive territory. Meanwhile, Fitch ratings agency warned that the contagion effects on US banks were "potentially large" if the crisis spreads beyond Greece, Ireland, Italy, Portugal, and Spain. It pointed to the risks in France, where banks are being weakened by their own Euro zone exposure, while Paris is trimming spends to avert loss of AAA credit rating. Hong Kong shares fell for a third-straight session on Thursday, with mainland property names among the hardest hit in weak turnover. However, Nikkei edged higher in the trade ahead of data which could showed the US economy is weathering Europe's debt storm, but the 8,500 level remained elusive amid fears of what news might come next out of the Euro zone. Asian Indices Last Trade Change in Points Change in % Shanghai Composite 2,463.05 -3.91 -0.16 Hang Seng 18,817.47 -143.43 -0.76 Jakarta Composite 3,792.25 -21.84 -0.57 KLSE Composite 1,465.47 -11.37 -0.77 Nikkei 225 8,479.63 16.47 0.19 Straits Times 2,778.25 -29.19 -1.04 Seoul Composite 1,876.67 20.60 1.11 Taiwan Weighted 7,387.81 0.29 0.00

US markets decline on worries of European debt crisis

Accord Fintech (India)

15 November 2011

India, Nov. 15 -- The US markets closed lower on Monday as Italy's borrowing costs increased to a euro-era record at an auction, deepening concern that European will struggle to contain its debt crisis. The markets were in pessimistic mood on growing realization that Italy and Greece face daunting tasks in reforming their economies, cut expenses and revenues all at the same time. Investors are increasing the probability of a recession in the euro zone, weakening of the euro and falling US exports may slowdown its economy as well. Markets further came under pressure after German Finance Minister Wolfgang Schaeuble stated that Europe's permanent bailout fund may not be implemented before 2013 and German Chancellor Angela Merkel's party voted to offer euro states a way to leave the currency area.In US, the president spoke at a news conference concluding a summit with Asia-Pacific leaders, where Obama reiterated the US stance that China is keeping its currency artificially low, putting American companies at a disadvantage. Also, with little more than a week to go until a November 23 deadline, members of Congress' super committee remained divided along partisan lines in their effort to devise $1.2 trillion or more in deficit savings during the next decade. The Dow Jones industrial average lost 74.70 points, or 0.61 percent, to 12,079.00. The Standard and Poor's 500 closed lower by 12.07 points, or 0.96 percent, to 1,251.78, while the Nasdaq composite lost 21.53 points, or 0.80 percent, to 2,657.22.The Indian ADRs closed in red on Monday, Infosys technologies was down by 1.78%, ICICI Bank was down by 1.10%, Tata Motors was down by 0.75%, HDFC Bank was down by 0.35% and Sterlite Industries was down by 0.34

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.52.25
UK Pound	1	Rs.81.23
Euro	1	Rs.69.83

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.