1.  The Company has fully suspended the Aluminium and Alumina
 operations since November 2008 and February 2009 respectively.
 
 2 Investments :
 
 There is a substantial decline in the market value of investment as
 compared to the cost of Rs. 56.87 million in the Equity shares of
 Sterlite Technologies Limited. The Company is of the opinion that the
 above investment is strategic and long-term in nature, diminution, if
 any, in the value of investments is temporary in nature. However, as a
 matter of prudence, the Company has provided an amount of Rs. 45
 million towards any possible diminution in the value of Equity shares
 of Sterlite Technologies Limited.
 
 3 Voluntary Retirement Scheme :
 
 The Company announced a voluntary retirement scheme for rationalisation
 of manpower to reduce the higher manpower cost and incurred a total
 expenditure of Rs. 92.6 million during the year which has been shown as
 exceptional item in the Profit & Loss account.
 
 4 Provision for Taxation : Current Tax
 
 (i) Provision for taxation for the Companys Year ended March 31, 2010
 has been determined based on the results for the year April 1, 2009 to
 March 31, 2010.
 
 5 Contingent liabilities : (a) Electricity Disputes :
 
 (i) Tamil Nadu Electricity Board (TNEB) had raised a demand of
 electricity dues of Rs. 3,173.14 million at normal tariff as against
 the concessional tariff fixed under the BIFR rehabilitation scheme,
 against which the Company had paid Rs.  150 million under protest. On
 the writ petition filed by the Company, the Madras High Court vide its
 order dated November 25, 1999 quashed the said demand and directed TNEB
 for refund of Rs. 150 million paid by the Company.  The Company
 adjusted an amount of Rs. 48 million towards then electricity dues.
 Subsequently, TNEB preferred an appeal against the operation of the
 High Courts order with a larger bench. While admitting the appeal
 filed by TNEB, the larger bench refused to grant stay except for refund
 of Rs. 102 million outstanding to the Company. As per legal opinion
 obtained by the Company the demand of TNEB is not tenable.
 
 (ii) TNEB has demanded an amount of Rs. 935.09 million from the Company
 towards electricity tax on self generated power from the Companys
 captive power plant for the period May 1999 to 15th June 2003.The
 Company has made a representation to the Government for exemption from
 levy of electricity tax. Pending disposal of the matter by the
 Government no provision has been made in the accounts. In the
 meanwhile, The Madras High Court has granted interim stay on operation
 of the demand.
 
 (iii) TNEB has also demanded Rs. 87.63 million towards electricity
 duty, tax and additional duty on the surplus power wheeled to an
 associate company, which is being contested by the Company and
 representation has been made to TNEB that no duty, tax or additional
 duty is leviable as the Company is not a licensee. Pending disposal of
 the matter no provision has been made in the accounts.
 
 b) Other contingent liabilities in respect of: (Rs in million)
 
 
                                                       (Rs. in million)
                                                                       
                                     March 31, 2010      Marrh 31, 2009
 
 (i) Claims against the Company 
     not acknowledged as debts               120.93              210.25
 
  Others :
 
           
   (i) Unexpired Letters of credit                -              389.13
  
  (ii) Bank guarantees                     1,165.40            1,457.53
 
 (iii) Corporate Guarantees given by the      56.97               56.97 
       Company
 
  (iv) Charge deferred to be recognised        0.05                1.51
       in subsequent accounting periods 
       in respect of forward contracts
 
   (v) Estimated amount of contracts,         36.28               41.03
       net of advances, remaining to be 
       executed on capital account and 
       not provided for
 
 
 (v) Estimated amount of contracts, net of advances, 36.28 : 41.03
 remaining to be executed on capital account and not provided for
 
 6 The Company has export obligation of Rs. 550.14 million against the
 import licenses taken for import of capital goods under export
 romotion Capital Goods Scheme.
 
 7 Micro, Small and Medium Enterprises
 
 There are no Micro, Small and Medium enterprises in respect of whom the
 Companys dues are outstanding for more than 45 days at the Balance
 Sheet date.
 
 The above information and that given in Schedule 11 - Current
 Liabilities and Provisions regarding Micro, Small and Medium i
 enterprises have been determined to the extent such parties have been
 identified on the basis of information available with the Company and
 relied upon by the auditors.
 
 S
 No. Particulars                       Rs. in million    Rs. in million
 
                                            2009-10          2008-09
 
 1  Principal Amount                           NIL             NIL
 
    Interest due thereon remaining 
    unpaid to any supplier as at the end
    of each accounting year.                   NIL             NIL
  
 2  The amount of interest paid by 
    the buyer in terms of Section 
    16 of the Micro, 
  
    Small and Medium Enterprises 
    Development Act, 2006 along with the
    payment ade to the supplier beyond 
    the appointed dayduring each 
    accounting year.                           NIL             NIL
 
 3  The amount of interest due and 
    payable for the period of 
    delay in making
 
    payment but without adding 
    interest as specified in the 
    Micro, Small and Medium Enterprises 
    Development Act, 2006                      NIL             NIL
 
 
 4  The amount of interest accrued 
    and remaining
    unpaid at the end of each 
    accounting year.                           NIL             NIL
 
 5  The amount of further interest
    remaining due and payable even
    in the succeeding  years, until 
    such date when the dues are 
    actually paid for the purpose of 
    disallowance 
 
    under Sectont 23 of the Micro, Small 
    and Medium Entetprises
    Development_Act 2006.                      NIL             NIL
 
 
 8 There are no amounts due and outstanding to be credited to Investor
 Education and Protection Fund.
 
 9 The Customs authorities had finalised the provisional assessment of
 project imports made with concessional duty during the year 2000-01. On
 finalisation, the Customs authorities raised a demand of Rs. 162.27
 million towards customs duty, penalty and fine and appropriated Rs.
 48.53 million, which was paid under protest in the earlier year.
 Aggrieved by the order of Customs authorities, the Company preferred an
 appeal before the Madras High Court and obtained an interim stay. The
 amount if finally determined as payable, will not have any impact on
 the Profits, subject to depreciation change but will add to the cost of
 assets.
 
 10 Segment Reporting :
 
 The Company is primarily engaged in the business of Aluminium products.
 Accordingly there are no separate reportable segments as per Accounting
 Standard 17 on Segment Reporting issued by the Institute of Chartered
 Accountants of India. However Company has suspended the Aluminium
 operations since November 2008 and available power is being sold in the
 commercial market.
 
 11 Related Party Disclosures :
 
 (As identified by the Company and relied upon by the auditors) 
 
 
 (i) List  of related parties where control exists
 
     Twinstar Holdings Limited - Holding Company 
 
     Vedanta Resources pic
 
     Volcan Investments Limited
 
 
 (ii) Other related parties Associates
 
     Bharat Aluminium Company Limited.  
 
     Hindustan Zinc Limited 
 
     Sterlite Industries (I) Limited 
 
     Sterlite Opportunities and Ventures Limited
 
     Vedanta Aluminium Limited 
 
     Sterlite Technologies Limited 
 
     Ararat Gold Recovery Lic 
 
     Sterlite Energy Ltd.  
 
     Sterlite Foundation 
 
     Konkola Copper Mines Pic.  
 
     Sesa Goa Limited 
 
     Sesa Industries Limited
 
 
 
 Key Management Personnel and Relatives of Key Management Personnel
 
 Mr. Anil Agarwal (no transactions during the year/ previous year)
 
 
 Mr. Navin Agarwal   - Brother of Mr. 
                       Anil Agarwal     (no transactions during the 
                                        year/ previous year except 
                                        sitting fee)
 
 Mr. Tarun Jain      - No Relation      (no transactions during the 
                                        year/ previous year except 
                                        sitting fee)
 
 Mr. Pravin Agarwal  - Brother of
                       Anil Agarwal     (no transactions during the 
                                        year/ previous year except
                                        sitting fees)
 
 Mr. Agnivesh 
     Agarwal         - Son of Anil 
                       Agarwal          (no transactions during the
                                        year/ previous year except
                                        remunation paid) 
 
 
 Mr. Ramesh Nair     - No relation      (no transactions during the 
                                       year/ previous year) 
 
 
 12 Financial and Derivative Instruments
 
 (ii) All derivative and Financial instruments acquired by the Company
 are for hedging purposes only.  (iii) There is no Unhedged foreign
 currency exposure as on March 31, 2010.
 
 13 Figures for the previous year have been regrouped/rearranged to
 correspond with current year figures wherever necessary.