I am delighted to report that FY 2011 was yet another year of record
 volumes, growth and proftability. We have consistently delivered on our
 commitments and produced strong results. Commodity prices and
 industrial demand have rebounded sharply; staging a return to economic
 growth and augmenting conviction and optimism in the global markets.
 
 Our excellent liquidity position, strong cash flows, low-cost
 operations, strong organic growth pipeline and continuous upgrading of
 mineral resources; ensures our long-term sustainability, operational
 growth and proftability and enhanced shareholder value.
 
 Financial Performance
 
 We reported yet another set of excellent results in FY 2011; driven by
 strong volume growth, operational efciencies and improved LME prices.
 We reported
 
 Revenues and PBDIT of Rs. 9,912 Crores and Rs. 6,454 Crores; up by 24% and
 20% compared to the previous year. Even with the significant capital
 investment of Rs. 1,324 Crores in the period, due to our excellent cash
 conversion, we exited the year with a cash-rich balance sheet having
 cash/bank balance and liquid investments of around Rs. 14,965 Crores.
 
 Operational Performance and Organic Growth
 
 I have great pleasure in reporting a record production of Zinc-Lead
 mined metal, refned Zinc metal and refned Silver during the year. The
 Zinc-Lead mined metal production during the year was 840,000 tonnes, up
 by 9% compared to the previous year.
 
 Refned Zinc metal production during FY 2011 was highest ever at 712,000
 tonnes, up by 23% compared to the previous year. The refned Silver
 production for FY 2011 was higher at 179,000 kg. During the year, our
 total power generation increased by 14% to 2,811.8 Million Units,
 compared to the previous year. The wind power generation was marginally
 lower at 201.4 Million Units, compared to the previous year.
 
 We have accelerated the pace of ramp-up at our Silver-rich Sindesar
 Khurd mine with the commissioning of 1.50 mtpa concentrator. During the
 year, we also successfully commissioned 160 MW (80X2) CPP at Dariba.
 
 Commissioning of the 100 ktpa Lead smelter at Dariba is expected to be
 completed in Q1 of FY 2012, post which, we would achieve our stated
 objective of over 1 mt of metal production capacity.
 
 Our portfolio of existing assets and recently completed expansion
 projects continues to yield superior performance, and we continue to
 make investments and pursue opportunities that drive long- term
 sustainable growth.
 
 Exploration
 
 I am delighted to report that our ongoing exploration activities have
 yielded significant success with an increase of 22.1 mt to the reserves
 and resources, prior to a depletion of 7.5 mt in FY 2011.  Contained
 Zinc-Lead metal has increased by 1.4 mt, prior to a depletion of 0.84
 mt during the same period. Contained Silver has increased to 885
 million ounces from 832.8 million ounces last year. Total reserves and
 resources as on 31 March 2011 were 313.2 mt containing 34.7 mt of
 Zinc-Lead metal and 885 million ounces of Silver. Expansion of our
 reserves and resources base through exploration is a part of our
 sustainable growth strategy.
 
 People
 
 The investment that a Company makes in its people is one of the most
 important investments it can ever make. I am perennially amazed and
 impressed with the competency, dedication, integrity and enthusiasm of
 our employees at every level of the Company. We have undergone a
 phenomenal transformation at the back of competency and improvement-
 oriented work culture of our people, supported by a string of
 debottlenecking and expansions. Our people continue to play a vital
 role in helping the organisation to create value and to grow with
 confidence. We believe in recruiting truly outstanding people,
 providing them with quality assignments, training, support and
 international opportunities in order to help them fourish both
 professionally and personally. I would like to thank all our employees
 for their continued contribution to the growth, success and
 sustainability of the Company.  We continue to ofer exciting growth
 opportunities for all our employees and remain committed towards
 providing a safe and supportive work environment for all.
 
 Sustainability
 
 Sustainability is a key element of our strategy for future and is
 consequently, embedded into our routine management processes and
 practices. We view environmental and social stewardship as one of our
 key responsibilities.  We believe that businesses play an important
 role in tackling and driving sustainability and climate change
 challenges. We are constantly involved in seeking proactive solutions
 to manage the environmental impact of our operations. We have
 established stringent management systems centred on safety, health,
 environment and social performance. We continue to impact the lives of
 over 500,000 people in the vicinity of our operations. Our focus is on
 nurturing leaders, conserving resources, improving health, safety and
 environmental performance, enhancing the quality of life and fostering
 innovation. We strive to ensure that our business creates sustainable
 benefits for each and every one of our stakeholders.
 
 Shareholders value
 
 Keeping in view the demand of the investor community, during the year
 equity share of Rs. 10/- each was sub- divided into 5 equity shares of Rs.
 2/- each, and a bonus issue in the ratio of one equity share of Rs. 2/-
 each was issued for every one equity share of Rs. 2/- each held. Due to
 the issue of Bonus shares, the authorised capital of the Company was
 increased from Rs. 500 Crores to Rs. 1,000 Crores. The board of directors
 has recommended a dividend of 50%, i.e., Rs. 1/- per equity share of Rs.
 2/- each, for the current year. The dividend is payable on an increased
 share capital following a 1:1 bonus issue.
 
 Awards and Recognition
 
 We are pleased and humbled to have our efforts acknowledged by the
 external agencies. During the year, we won numerous awards in the areas
 of operational excellence, quality and health-safety-environment;
 notable amongst these are the 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.
 
 Outlook
 
 The year has witnessed a significant recovery in demand and commodity
 prices, which appears deep-seated and stable. Outlook for our
 commodities thus remains strong. We remain focused on reducing our cost
 of production, delivering our organic growth programme on time and at
 benchmark low capital costs and generating strong free cash flows. We
 have successfully commissioned our 1.50 mtpa concentrator at Sindesar
 Khurd Mine, and 160 MW (80 X2) CPP at Dariba Smelting Complex; the
 operational impact of which will be visible in the next fiscal. We are
 focused on substantially increasing our Silver production through
 increased mine volumes and improved recovery and efficiency. With the
 completion of the 100 ktpa Lead smelter and 16 million oz of Silver
 processing capacity in Q1 of FY 2012, we would achieve our objective of
 over 1 mt of metal production capacity.
 
 Agnivesh Agarwal
 
 Chairman