(a) Basis of Accounting :
 
 The Financial Statements are prepared as a going-concern under
 historical cost convention on an accrual basis and in accordance with
 the Companies Act, 1956 except those items covered under Accounting
 Standard - 30 on Financial instruments : Recognition and Measurement
 which have been measured at their fair value . Accounting policies not
 stated explicitly otherwise are consistent with generally accepted
 accounting principles.
 
 (b) Use of Estimates:
 
 The presentation of financial statements requires estimates and
 assumptions to be made that affect the reported amount of assets and
 liabilities on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual results and the estimates are recognised in the
 period in which the results are known/materialized.
 
 (c) Borrowing Cost:
 
 Borrowing Cost attributable to the acquisition or construction of
 qualifying assets are capitalised as part of the cost of such assets
 upto the date when such assets are ready for intended use. Other
 borrowing costs are charged as expense in the year in which they are
 incurred.
 
 (d) Fixed Assets:
 
 Fixed Assets are stated at cost (net of Modvat/Cenvat/Value Added Tax)
 less accumulated depreciation and impairment loss.
 
 (e) Expenditure During Construction Period:
 
 All pre-operative project expenditure (net of income accrued) incurred
 upto the date of commercial production is capitalised.
 
 (f) Depreciation:
 
 (i) Depreciation has been provided on Fixed Assets on straight line
 method at the rates and in the manner specified in Schedule XIV to the
 Companies Act, 1956, except in respect of additions arising on account
 of Insurance spares, on additions/extensions forming an integral part
 of existing plants and on the revised carrying amount of the assets
 identified as impaired on which depreciation has been provided over
 residual life of the respective fixed assets.
 
 (ii) Amortisation of leasehold land and buildings has been done in
 proportion to the period of lease.
 
 (iii) Fixed Assets where ownership vests with the Government/Local
 authorities are amortised at the rates of depreciation specified in
 Schedule XIV to the Companies Act, 1956.
 
 (g) Intangible Assets:
 
 Intangible Assets are stated at cost of acquisition less accumulated
 amortisation. Technical know-how is amortised over the useful life of
 the underlying plant. Amortisation is done on straight line basis.
 Software is amortised on Straight Line basis over the useful life of
 the asset or 5 years which ever is earlier.
 
 (h) Investments:
 
 (i) Investments are classified as investments in Subsidiaries (valued
 at cost), Associates (valued at cost except for investments in
 redeemable cumulative preference shares of associate which are at
 amortised cost), Available for Sale, Held for Trading and Held To
 Maturity within the meaning of Accounting Standard 30 on Financial
 Instruments: Recognition and measurement read with the limited
 revisions of Accounting Standard 21 on Consolidated Financial
 Statements & Accounting Standard 23 on Accounting for Investments in
 Associates.
 
 (ii) Investments are recorded as Long Term Investments unless they are
 expected to be sold within one year. Investments in subsidiaries and
 associates are valued at cost except for investments in redeemable
 cumulative preference shares of associate which are at amortised cost
 less any provision for impairment. Investments are reviewed for
 impairment if events or changes in circumstances indicate that the
 carrying amount may not be recoverable.
 
 (iii) Investments classified as Available for Sale are initially
 recorded at cost and then remeasured at subsequent reporting dates to
 fair value. Unrealised gains/losses on such investments are recognised
 directly in Investment Revaluation Reserve Account. At the time of
 disposal, derecognition or impairment of the investments, cumulative
 gain or loss previously recognised in the Investment Revaluation
 Reserve Account is recognised in the Statment of Profit and Loss.
 
 (iv) Investments classified as Held for Trading that have a market
 price are measured at fair value & gain/loss arising on account of fair
 valuation is routed through Statement of Profit and Loss and those that
 do not have a market price and whose fair value cannot be reliably
 measured are carried at cost.
 
 (v) Investments classified as Held to Maturity are measured at
 amortised cost using an effective interest rate method.
 
 (i) Inventories:
 
 (i) Inventories are valued at lower of cost or net realisable value
 except for scrap and by-products which are valued at net realisable
 value.
 
 (ii) Cost of inventories of finished goods and work-in-process includes
 material cost, cost of conversion and other costs.
 
 (iii) Cost of inventories of raw material and material cost of finished
 goods and work-in-process is determined on First In First Out (FIFO)
 basis except Rock phosphate and stores and spare parts which are valued
 at weighted average cost.
 
 (j) Premium on Redemption of Debentures:
 
 Premium on redemption of debentures is provided for on an accrual basis
 and charged to Statement of Profit and Loss using an effective interest
 rate method.
 
 (k) Foreign Currency Transactions:
 
 (i) Transactions denominated in foreign currencies are normally
 recorded at the exchange rate prevailing on the date of the
 transaction.
 
 (ii) Monetary items denominated in foreign currencies at the year end
 are restated at year end rates. In case of monetary items which are
 hedged by derivative instruments, the valuation is done as per
 Accounting Standard - 30, Financial Instruments: Recognition and
 Measurement read with accounting policy on derivative instruments. The
 fair value of foreign currency contracts are calculated with reference
 to current forward exchange rates for the contracts with similar
 maturity profile.
 
 (iii) Non monetary foreign currency items are carried at cost.
 
 (iv) Any income or expense on account of exchange difference either on
 settlement or on translation is recognised in the Statement of Profit
 and Loss except in respect of long term Foreign Currency monetary Items
 which are not covered by Accounting Standard (AS 30) on Financial
 instruments; Recognition and Measurement relatable to acquisition of
 depreciable fixed assets, such difference is adjusted to the carrying
 cost of the depreciable fixed assets. In respect of other long term
 Foreign Currency Monetary items, the same is transferred to Foreign
 Currency Monetary Translation Difference Account and amortised over
 the balance period of such long term Foreign Currency Monetary items
 but not beyond March 31, 2020.
 
 (l) Issue expenses:
 
 Expenses of Debenture/Bond/Floating Rate Note issues are charged to
 Statement of Profit and Loss using an effective interest rate method.
 Expenses related to equity & equity related instruments are adjusted
 against the security premium account.
 
 (m) Employee Benefits:
 
 (i) Short term employee benefits are recognised as an expense at the
 undiscounted amount in the Statement of Profit and Loss of the year in
 which the related service is rendered. Provision for compensated
 absences to employees is on actual basis for the portion of accumulated
 leave which an employee can encash.
 
 (ii) Post employment and other long term employee benefits are
 recognised as an expense in the Statement of Profit and Loss for the
 year in which the employee has rendered services. The expense is
 recognised at the present value of the amounts payable determined using
 actuarial valuation techniques. Actuarial gains and losses in respect
 of post employment and other long term benefits are charged to the
 Statement of Profit and Loss.
 
 (n) Revenue Recognition:
 
 (i) Revenue is recognised only when it can be reliably measured and it
 is reasonable to expect ultimate collection. Revenue from operations
 includes sale of goods, services, scrap, excise duty, export incentives
 and are net of sales tax/Value Added Tax, rebates and discounts.
 Dividend income is recognised when right to receive the payment is
 established by the Balance Sheet Date. Interest income is recognised on
 time proportion basis taking into account the amount outstanding and
 rate applicable.
 
 (o) Export incentives:
 
 Duty drawback is recognised at the time of exports and the benefits in
 respect of advance license received by the company against export made
 by it are recognised as and when goods are imported against them.
 
 (p) Import of copper concentrate and sale of copper and slime:
 
 In accordance with the prevailing international market practice,
 purchase of Copper Concentrate and sale of Copper and Slimes are
 accounted for on provisional invoice basis pending final invoice in
 terms of Purchase Contract/Sales Contract respectively. The cases where
 quotational period price are not finalised as at the year end are
 restated at forward LME/LBMA rates as on the date of year end and
 adjustments are made based on the metal contents as per laboratory
 assessments done by the company pending final invoice.
 
 (q) Derivative Instruments:
 
 In order to hedge its exposure to foreign exchange, interest rate and
 commodity price risks, the company enters into forward, option, swap
 contracts and other derivative financial instruments. The company
 neither hold nor issue any derivative financial instruments for
 speculative purposes.
 
 Derivative financial instruments are initially recorded at their fair
 value on the date of the derivative transaction and are re- measured at
 their fair value at subsequent balance sheet dates.
 
 Changes in the fair value of derivatives that are designated and
 qualify as fair value hedges are recorded in the Statement of Profit
 and Loss. The hedged item is recorded at fair value and any gain or
 loss is recorded in the Statement of Profit and Loss and is offset by
 the gain or loss from the change in the fair value of the derivative.
 
 Changes in the fair value of derivatives that are designated and
 qualify as cash flow hedges and are determined to be an effective hedge
 are recorded in Hedging Reserve account. Any cumulative gain or loss on
 the hedging instrument recognised in Hedging Reserve is kept in Hedging
 Reserve until the forecast transaction occurs. Amounts deferred to
 Hedging Reserve are recycled in the Statement of Profit and Loss in the
 periods when the hedged item is recognised in the Statement of Profit
 and Loss or when the portion of the gain or loss is determined to be an
 in-effective hedge.
 
 Derivative financial instruments that do not qualify for hedge
 accounting are marked to market at the balance sheet date and gains or
 losses are recognised in the Statement of Profit and Loss immediately.
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated or exercised, or no longer qualifies for hedge
 accounting. If a hedged transaction is no longer expected to occur, the
 net cumulative gain or loss recognised in Hedging Reserve is
 transferred to net profit or loss for the year.
 
 Derivatives embedded in other financial instruments or other host
 contracts are treated as separate derivatives when their risks and
 characteristics are not closely related to those of host contracts and
 the host contracts are not carried at fair value with unrealised gains
 or losses reported in the Statement of Profit and Loss.
 
 (r) Convertible notes:
 
 Convertible notes issued in foreign currency are convertible at the
 option of the holder into ordinary shares of the Company as per the
 terms of the issue. Conversion option which is not settled by
 exchanging a fixed amount of cash for a fixed number of shares is
 accounted for separately from the liability component as derivative and
 initially accounted for at fair value.  The liability component is
 recognized initially at the difference between the fair value of the
 note and the fair value of the conversion option. Directly attributable
 costs are allocated to the liability component and the conversion
 option in proportion to their initial carrying amounts. Subsequent to
 initial recognition, the liability component of a compound financial
 instrument is measured at amortized cost using the effective interest
 rate method. The conversion option is subsequently measured at fair
 value at each reporting date, with changes in fair value recognized in
 the Statement of Profit and Loss. The conversion option is presented
 together with the related liability.
 
 (s) Taxation:
 
 Provision for current tax is made after taking into consideration
 benefits admissible under the provisions of the Income Tax Act, 1961.
 Deferred tax resulting from timing differences between book and
 taxable profit is accounted for using the tax rates and laws that have
 been enacted or substantively enacted as on the balance sheet date. The
 deferred tax asset is recognised and carried forward only to the extent
 that there is reasonable/virtual certainty that asset will be realised
 in future.
 
 (t) Impairment of Assets:
 
 The carrying amount of assets are reviewed at each Balance Sheet date
 if there is any indication of impairment based on internal/external
 factors. An asset is treated as impaired when the carrying cost of
 assets exceeds its recoverable value.  An impairment loss is recognised
 in the Statement of Profit and Loss where the carrying amount of an
 asset exceeds its recoverable amount. The impairment loss recognised in
 prior accounting periods is reversed if there has been a change in the
 estimate of recoverable amount.
 
 (u) Provision, Contingent Liabilities and Contingent assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and it is probable that there will be an outflow of resources.
 Contingent Liabilities are not recognised but are disclosed in the
 Financial Statements. Contingent Assets are neither recognised nor
 disclosed in the financial statements.
 
 (v) Segment Reporting:
 
 The Company identifies primary business segment based on the different
 risks and returns, the organization structure and the internal
 reporting systems. The operating segments are the segments for which
 separate financial information is available and for which operating
 profit/loss amounts are evaluated regularly by the Board of Directors
 in deciding how to allocate resources and in assessing performance.
 
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company. Segment revenue, segment
 results, segment assets and segment liabilities have been identified to
 segments on the basis of their relationship to the operating activities
 of the segment.
 
 Inter-segment revenue is accounted on the basis of transactions which
 are primarily determined based on market / fair value factors.
 
 Revenue, expenses, assets and liabilities which relates to the Company
 as a whole and are not allocable to segments on reasonable basis have
 been included under unallocated revenue / results / assets /
 liabilities.
 
 (w) Cash Flow Statement:
 
 Cash flows are reported using indirect method, whereby profit/(loss)
 before extraordinary items and tax is adjusted for the effects of
 transactions of non-cash nature and any deferrals or accruals of past
 or future cash receipts or payments. The cash flows from operating,
 investing and financing activities of the Company are segregated based
 on the available information.
 
 ii) 1,671,144,924 (Previous year 1,671,144,924) equity Shares are held
 by Twinstar Holdings Limited, the holding company (Excluding shares
 against which ADRs are issued).
 
 119,750,659 Equity Shares (Previous year 102,453,600) are held by The
 Madras Aluminium Company Limited, fellow subsidiary. Vedanta Resources
 Plc is the ulitmate holding company and doesnot hold any equity shares
 of the company.
 
 v) Other disclosures
 
 (a) The company has one class of equity shares having a par value of
 Rs.1 per share. Each shareholder is eligible for one vote per share
 held. The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting,
 except in case of interim dividend. In the event of liquidation of
 company, the holders of equity shares will be entitled to receive any
 of the remaining assets of the company, after distribution of all
 preferential amounts, in proportion to their shareholding.
 
 (b) ADS shareholders do not have right to attend the General meeting in
 person and also do not have right to vote. They are represented by
 depository, CITI Bank N.A. New York.
 
 (c) For terms of conversion of 4% Convertible Senior Notes of 00
 each, Refer Note no.5(c)
 
 vi) In terms of Scheme of Arrangement (Scheme) as approved by the
 Hon''ble High Court of Judicature at Mumbai, vide its order dated April
 19, 2002 the company during 2002-2003 reduced its paid up share capital
 by X 10.03 Crore. There are 3,75,544 equity shares of RS. 1 each
 (Previous year 3,75,544 equity shares of Rs. 1 each) pending clearance
 from NSDL/CDSL. A Special Leave Petition filed in the Hon''ble Supreme
 Court of India against the judgement of Hon''ble High Court of Mumbai by
 SEBI and Department of Company Affairs has been inter-alia dismissed.
 The Company has filed application in Hon''ble High Court of Mumbai to
 cancel these shares, the decision on which is pending.