The Directors have pleasure in presenting the 45th Annual Report
 together with the statement of Audited Accounts for the fnancial year
 ended 31 March 2011.
 
 Financial Results and Dividend
 
 (Rs. Crores)                               FY 2011         FY 2010
 
 Total Revenue                           10,891.35        8,734.65
 
 Profit before depreciation,
 interest and tax                         6,453.69        5,392.28
 
 Less: Interest                              19.40           43.92
 
 Less: Depreciation                         474.74          334.25
 
 Profit before tax                        5,959.55        5,014.11
 
 Taxation                                 1,059.06          972.70
 
 Net Profit for the year                  4,900.49         4,04141
 
 Add: Balance brought forward
 from the previous year                   9,895.06        6,649.28
 
 Amount available for appropriation      14,795.55       10,690.69
 
 Appropriation
 
 General Reserve                            500.00          500.00
 (a) Proposed dividend on
 equity shares                              491.08          295.63
 (including corporate tax thereon)
 
 Balance carried forward to next year    13,804.47        9,895.06
 
 Share Capital and Dividend
 
 During the year under review, the authorised share capital of the
 Company was increased from Rs. 500 Crores to Rs. 1,000 Crores.  The
 existing equity share of Rs. 10/- each was sub-divided into 5 equity
 shares of Rs. 2/- each, and bonus shares in the ratio of 1:1 (post split)
 were issued to all the shareholders of the Company. After issue of the
 Bonus shares, the paid up capital of the Company has increased from Rs.
 422.53 Crores to Rs. 845.06 Crores.
 
 The Board of Directors has recommended dividend of 50%, i.e., Rs. 1 per
 equity share of Rs. 2/- each on the increased capital after issue of
 Bonus shares for the year 2010-11. The total outgo on account of
 dividend including tax on dividend will be Rs. 491 Crores during FY 2011
 as compared to Rs. 296 Crores in FY 2010.
 
 Performance Review
 
 FY 2011 has been remarkable in terms of volume growth and capacity
 additions. We have successfully commissioned our 1.50 mtpa concentrator
 at Sindesar Khurd. It is ramping up well and is expected to achieve its
 rated capacity in FY 2012. The 100 ktpa Lead smelter at Dariba is
 expected to commission by Q1 FY 2012, post which our Zinc-Lead metal
 production capacity will increase to 1,064 ktpa.
 
 Driven by significant volume ramp-ups during the year, the Company
 recorded its highest ever Zinc-Lead mined metal production of 840,053
 tonnes, up by 9% compared to the previous year.
 
 Refined Zinc metal production was highest ever at 712,471 tonnes in FY
 2011, up by 23% compared to the previous year.
 
 Refned Lead metal production was 12% lower at 63,192 tonnes in FY 2011,
 compared to the previous year.
 
 Refned Silver production for the year was higher at 179,079 kg,
 compared to the previous year.
 
 Exploration
 
 Ongoing exploration activities have yielded significant success with an
 increase of 22.1 million tonnes to the reserves and resources, prior to
 a depletion of 7.5 million tonnes in FY 2011.  Contained Zinc-Lead
 metal has increased by 1.4 million tonnes, prior to a depletion of 0.84
 million tonnes during the same period.  Contained Silver has increased
 to 885 million ounces from 832.8 million ounces last year. Total
 reserves and resources as at 31 March 2011 were 313.2 million tonnes
 containing 34.7 million tonnes of Zinc-Lead metal and 885 million
 ounces of Silver.  The reserves and resources position has been
 independently reviewed and certified as per the JORC standard.
 
 Renewal of Mining Lease
 
 The renewal of the mining lease for Zawar group of mines was applied on
 25 November 2008. As a part of the mining lease was falling on the
 forest land, approval from the Forest department for diversion of the
 land was required. In view of the honorable Supreme Courts order dated
 19 February 2010, regarding mining in Aravali Hills of Rajasthan,
 forest clearance was kept pending.  Company had represented the matter
 at various forums and also fled a writ in the Supreme Court. The Forest
 Advisory Committee (FAC) has already submitted its recommendation to
 the Supreme Court. All other approvals, as are required for renewal of
 the mining lease, are in place. Now the matter is pending in the
 Supreme Court, awaiting final hearing.
 
 Sales
 
 Zinc metal sales in the domestic market during the year were 411,617
 tonnes, while export sales accounted for 300,986 tonnes.  Lead metal
 sales in the domestic market during the year were 57,204 tonnes, with
 the export sales accounting for 25 tonnes.  Sales during the year were
 augmented by sale of 65,957 Dry Metric Tonnes (DMT) of surplus Zinc
 concentrate and 38,457 DMT of surplus Lead concentrate.
 
 Financial Performance
 
 The Company reported Net profits of Rs. 4,901 Crores during the year, up
 by 21% compared to the previous year. This was primarily on account of
 higher volumes, increased LME prices and improved operational
 efficiencies.
 
 The Companys financial performance has been discussed in detail in the
 chapter on Management Discussion and Analysis which forms a part of
 this Annual Report.
 
 Projects
 
 The current fiscal has witnessed successful commissioning of the 1.50
 mtpa concentrator at Sindesar Khurd. We have also added 160 MW (80X2)
 captive power generation capacity at Dariba, during the year.
 
 The pace of volume ramp up at Sindesar Khurd has been accelerated with
 the commissioning of the 1.50 mtpa concentrator. The concentrator had
 already achieved a production level of around 85% of the capacity, as
 we exited the year. Our Silver production capacity is expected to leap
 to 500 tonnes by the end of FY 2012, on the back of volume ramp up at
 Sindesar Khurd & Rampura Agucha and various recovery improvement
 measures.
 
 After the commissioning of the 100 ktpa Lead Smelter, the Company will
 cross the one million tonne landmark in metal production capacity.
 
 We have also announced an addition of 150 MW in our existing 123.2 MW
 wind power capacity. Of this 47.7 MW has been commissioned in March
 2011. The balance is expected to get commissioned towards the end of Q2
 of FY 2012.
 
 Our existing portfolio of assets continues to deliver superior
 performance; and we continue to pursue further organic/ inorganic
 growth opportunities.
 
 Contribution to the Exchequer
 
 Your Company has contributed Rs. 2,602 Crores in terms of taxes and
 duties to the exchequer.
 
 Directors
 
 During the year under review, following changes took place in the Board
 of Directors of your Company. Mr. R. K. Malhotra and Ms. Anjali Anand
 Srivastava were nominated as Directors on the Board in place of Ms.
 Ajita Bajpai Pande and Mr. S. K. Mittal.  Further Mr. M. S. Mehta
 ceased to be director on the board of the Company w.e.f. 30 June 2010.
 
 Mr. A. R. Narayanswamy and Mr. Navin Agarwal retire by rotation and
 being eligible; ofer themselves for reappointment at the ensuing Annual
 General meeting. None of the retiring directors hold any shares in the
 Company. Your Directors recommend their reappointment.
 
 Management Discussion and Analysis
 
 The Management Discussion and Analysis Report, which gives a detailed
 account of operations of your Company and the market in which it
 operates, including initiative taken by the Company to expand its
 business and in areas such as human resources, and risk management,
 forms a part of this Annual Report.
 
 Corporate Governance
 
 Report on Corporate Governance along with a certifcate from the
 auditors of the Company regarding the compliance of conditions of
 corporate governance as stipulated under Clause 49 of the Listing
 Agreement is annexed to this report.
 
 Group
 
 The Agarwal Group being a group defned under the Monopolies and
 Restrictive Trade Practices Act, 1969, controls the Company.
 
 A list of its group entities is given below:
 
 Sr. No.  Name of the Group Companies
 
 1.  Volcan Investments Limited
 
 2.  Vedanta Resources Plc.
 
 3.  Vedanta Resources Holding Limited
 
 4.  Vedanta Resources Jersey Limited
 
 5.  Vedanta Resources Jersey II Limited
 
 6.  Vedanta Resources (Jersey) Limited
 
 7.  Vedanta Resources Investments Limited
 
 8.  Vedanta Jersey Investments Limited
 
 9.  Bharat Aluminum Company Limited
 
 10.  Copper Mines of Tasmania Pty Limited
 
 11.  Fujariah Gold
 
 12.  The Madras Aluminium Company Limited
 
 13.  Monte Cello BV
 
 14.  Monte Cello Corporation NV
 
 15.  Konkola Copper Mines PLC
 
 16.  Sterlite Energy Limited
 
 17.  Sesa Goa Limited
 
 18.  Sesa Industries Limited
 
 19.  V S Dempo Private Limited
 
 20.  Dempo Mining Corporation Private Limited
 
 21.  Sterlite Industries (India) Limited
 
 22.  Sterlite Opportunities and Venture Limited
 
 23.  Sterlite Infra Limited
 
 24.  Thalanga Copper Mines Pty Limited
 
 25.  Twin Star Holding Limited
 
 26.  Vedanta Aluminium Limited
 
 27.  Richter Holding Limited
 
 28.  Westglobe Limited
 
 29.  Finsider International Company Limited
 
 30.  Vedanta Resources Finance Limited
 
 31.  Vedanta Resources Cyprus Limited
 
 32.  Welter Trading Limited
 
 33.  Lakomasko BV
 
 34.  THL Zinc Ventures Limited - Former THL KCM Limited
 
 35.  Twinstar Energy Holdings Limited - Former THL Aluminium
 
 36.  THL Zinc Limited - Former KCM Holdings Limited
 
 37.  Sterlite (USA) Inc.
 
 38.  Talwandi Sabo Power Limited
 
 39.  Allied Port Services Pvt. Ltd.
 
 40.  Konkola Resources Plc
 
 41.  Vizag General Cargo Berth Pvt. Limited
 
 42.  Twin Star Mauritius Holding Limited
 
 43.  Vedanta Namibia Holdings Limited
 
 44.  Skorpoin Zinc (Pty) Limited
 
 45.  Namzinc (Pty) Limited
 
 46.  Skorpion Mining Company (Pty) Limited
 
 47.  Amica Guesthouse (Pty) Ltd.
 
 48.  Rosh Pinah healthcare (Pty) Ltd.
 
 49.  Black Mountain Mining (Pty) Ltd.
 
 50.  THL Zinc Holding BV - Former Labaume BV
 
 51.  Lisheen Mine Partnership
 
 52.  THL Zinc Holding Cooperative U.A.
 
 53.  Pecvest 17 Pvt. Ltd.
 
 54.  Vedanta Lisheen Finance Limited
 
 55.  Vedanta Base Metals (Ireland) Limited
 
 56.  Vedanta Lisheen Mining Limited
 
 57.  Killoran Lisheen Mining Limited
 
 58.  Killoran Lisheen Finace Limited
 
 59.  Lisheen Milling Limited
 
 60.  Killoran Concentrates Limited
 
 61.  Killoran Lisheen Limited
 
 62.  Killoran Lisheen Holdings Limited
 
 63.  Azela Limited
 
 64.  Paradip Port Services Pvt. Limited
 
 65.  MALCO Power Company Limited
 
 66.  Malco Industries Limited
 
 Directors Responsibility Statement
 
 As required under Section 217 (2AA) of the Companies Act, 1956, the
 Directors hereby confrm that:
 
 i. In the preparation of Annual Accounts, applicable accounting
 standards have been followed along with proper explanation relating to
 material departures, if any.
 
 ii. The Directors have selected such accounting policies and applied
 them consistently and made judgements and estimates that are reasonable
 and prudent so as to give a true and fair view of the state of affairs
 of the Company at the end of the financial year on 31 March 2011 and of
 the profit of the Company for that year.
 
 iii. The Directors have taken proper and sufficient care for the
 maintenance of adequate accounting records in accordance with the
 provisions of the Act for safeguarding the assets of the Company and,
 for detecting and preventing fraud and other irregularities.
 
 iv The Directors have prepared the Annual Accounts on a Going Concern
 basis.
 
 Auditors
 
 Your Company had appointed M/s. Deloitte Haskins & Sells, Chartered
 Accountants, as statutory auditors of the Company for the conduct of
 audit of accounts for the year ended 31 March 2011.  Their term of
 appointment expires at the conclusion of the forthcoming Annual General
 Meeting (AGM), and being eligible, they offer themselves for
 reappointment. Your Directors propose their reappointment.
 
 Auditors Qualification on Accounts
 
 Notes to the accounts, as referred to in the Auditors Report are
 self-explanatory and a practice consistently followed, and therefore do
 not call for any further comments and explanations.
 
 Particulars of Technology Absorption and Foreign Exchange Earnings and
 Outgo
 
 As required under Section 217 (1) (e) of the Companies Act, 1956 and
 rules made therein, the particulars of technology absorption and
 foreign exchange earnings and outgo are given in Annexure I, which is
 attached and forms a part of this report.
 
 Particulars of Employees
 
 As required by the provisions of Sub-section (2A) of Section 217 of the
 Companies Act, 1956 read with the Companies (Particulars of Employees)
 Rules, 1975 as amended, particulars of the employees are set out in the
 Annexure to the Directors Report. However, as per provisions of
 Section 219 (1)(b)(iv) of the Companies Act, 1956 the report and the
 accounts are being sent to all the shareholders excluding the aforesaid
 information. Any shareholder, interested in obtaining such particulars
 may write to the Company Secretary at the registered office of the
 Company for a copy of the same.
 
 Acknowledgements
 
 The Board of Directors places on record its sincere appreciation of the
 contribution made by the employees, employees unions in the success of
 the Company. The Directors also sincerely thank the Central Government
 and the State Governments of Rajasthan, Andhra Pradesh, Gujarat,
 Karnataka, Jharkhand and Uttaranchal; bankers, auditors, vendors,
 customers and the shareholders of the Company for their continued
 support.
  
                         For and on behalf of the Board of Directors
 
                     Akhilesh Joshi              A. R. Narayanswamy
                    CEO & Whole-time Director              Director
 
 Place : Mumbai
 Date  : April 21, 2011