1.  Contingent Liability: (Rs. in Crores)
 
                               As at 31st March    As at 31st March
                                     2011               2010
 
 Claims against the Company not 
 acknowledged as debts
 (Matters pending in court/
 arbitration. No cash out flow 
 is expected in future)
 
 - Suppliers and contractors         64.59              60.62
 
 - Employees, ex-employees 
 and others                          19.93              12.83
 
 - Land Tax                           0.27               0.27
 
 - Mining cases                     333.90             333.90
 
 Guarantees issued by the banks
 
 (Bank guarantees are provided under legal/contractual obligation.
 
 No cash out flow is
  expected in future)                46.02              27.91
 
 Sales tax demands
 
 (This pertain to disputes in respect of tax rate
 diference/classifcation, stock transfer matters. No cash out flow is
 expected in future)                 34.78              37.02
 
 Income tax
 
 (No cash out flow is expected 
 in future)                         556.86             396.64
 
 Excise Duty demands
 
 (This pertain to Modvat/Cenvat credit availed on inputs, capital goods,
 alleged duty demand on captive use of the goods.
 
 No cash out flow is expected 
 in future)                           71.19             49.09
 
 Bills Discounted
 
 (No cash out flow is 
 expected in future)                 345.11            105.81
 
 Claim for compensation 
 (CLZS land)                  Not ascertainable     Not ascertainable
 
 2.  Estimated amount of contracts remaining to be executed on capital
 account not provided for Rs. 643.64 Crores (2010: Rs. 470.40 Crores)
 
 3.  The Company has export obligations of Rs. 360.00 Crores (2010 : Rs.
 465.37 Crores) against the import licenses taken for import of capital
 goods under Export Promotion Capital Goods & Advance License Scheme.
 
 4.  The title deeds are still to be executed in respect of 10.63 acres
 of freehold land at Vishakapatnam.
 
 5.  Joint Venture :
 
 a.  The Company has access upto 31.5 million tonnes of coal as a
 partner in the joint venture “Madanpur South Coal Company Limited”
 where it holds 18.05% of ownership interest (2010 : 18.05%).
 
 6.  Matured fixed deposits of Rs. 0.08 Crore (2010: Rs. 0.08 Crores) due
 for transfer to Investor Education and Protection Fund have not been
 transferred in view of pending legal litigation between the
 beneficiaries.
 
 7.  Long-term Incentive Plan (LTIP)
 
 The Company offers equity-based award plans to its employees, officers
 and directors through its parent, Vedanta (The Vedanta Resources
 Long-term Incentive Plan (the “LTIP”).
 
 The LTIP is the primary arrangement under which share-based incentives
 are provided to the defined management group. The maximum value of
 shares that can be awarded to members of the defined management group
 is calculated by reference to the balance of basic salary and
 share-based remuneration consistent with local market practice. The
 performance condition attaching to outstanding awards under the LTIP is
 that of Vedantas performance, measured in terms of Total Shareholder
 Return (“TSR”) compared over a three year period with the performance
 of the companies as defined in the scheme from the date of grant.
 
 Under this scheme, initial awards under the LTIP were granted in
 February 2004 with further awards being made in June 2004, November
 2004, February 2006, November 2007, August 2009, January 2010, July
 2010, October 2010 and January 2011. The awards are indexed to and
 settled by Vedanta shares. The awards provide for a fixed exercise
 price denominated in Vedantas functional currency at 10 US cents per
 share, the performance period of each award is three years and the same
 is exercisable within a period of six months from the date of vesting
 beyond with the option lapse. Under the scheme, Vedanta is obligated to
 issue the shares. Further, in accordance with the terms of agreement
 between Vedanta and SIIL, the grant date fair value of the awards is
 recovered by Vedanta from SIIL.
 
 Amount recovered by Vedanta and recognised by the Company in the
 statement of income for the financial year ended 31 March 2010 and 2011
 was Rs. 11.14 Crores and Rs. 15.52 Crores respectively. The Company
 considers these amounts as not material and accordingly has not
 provided further disclosures.
 
 8.  Employee benefits Long-term
 
 (a) Defined Contribution Plans: Provident Fund and Family Pension
 Scheme
 
 The Company ofers its employees benefts under defned contribution plans
 in the form of provident fund and family pension scheme. Provident fund
 and family pension scheme cover all employees on roll. Contributions
 are paid during the year into separate funds under certain
 statutory/fduciary type arrangements. While both the employees and the
 Company pay predetermined contributions into the provident fund, the
 contribution to family pension fund is made only by the Company based
 on prescribed rules of family pension scheme. The contributions are
 based on a fixed percentage of the employees salary prescribed in the
 respective scheme.
 
 15.  Intangible assets represents Rs. 98.41 Crores (2010 : Rs. 98.41
 Crores) being long-term investment in equity shares of Andhra Pradesh I
 Gas Power Corporation Limited, Hyderabad, which entitles the Company to
 draw power in Andhra Pradesh for its Vishakapatnam I unit. This has
 been amortised as a fixed asset. Amortisation for the year is Rs. 4.67
 Crores (2010 : Rs. 4.67 Crores.), cumulative I Rs.47.05 Crores (2010 : Rs.
 42.38 Crores).
 
 16.  Arising from the Announcement of the Institute of Chartered
 Accountants of India (ICAI) on 29 March 2008, the Company I has, since
 2007-08, chosen to early adopt Accounting Standard (AS) 30, Financial
 Instruments: Recognition and Measurement. I Coterminous with this, in
 the spirit of complete adoption, as have been announced by the ICAI,
 the Company has also implemented I the consequential limited revisions
 in view of AS-30 to certain Accounting Standards.
 
 Accordingly, current investments which under AS-13 Accounting for
 Investments are carried at the lower of cost and fair value, I have
 been accounted for at fair value resulting in investment being valued
 at Rs. 248.73 Crores (2010 : Rs. 105.01 Crores) above their I cost and the
 profit before tax for the year is higher by Rs. 143.72 Crores (2010 :
 higher by Rs. 0.60 Crore).
 
 17.  Exceptional item represents the amount incurred on Voluntary
 Retirement Scheme in respect of Zinc, Lead and Silver segment.
 
 18.  Previous years figures have been regrouped and rearranged,
 wherever necessary.