It gives me great pleasure to share the performance and highlights of
 the year 2010-11. It has been a fulfilling year for Sterlite, with
 achieved record levels of production, record sales of power, and an
 impressive 32% increase in PBDIT, as we continue our focus on
 delivering growth and creating long-term value for our shareholders.
 
 Our extensive investment in organic growth projects continues, driving
 strong PBDIT and cash flow growth. During the year we acquired the zinc
 assets of Anglo- American Plc. there by expanding our zinc business
 geographical footprint.
 
 Financial Performance
 
 Against a background of recovering economic conditions in the developed
 world and a continued strong demand from emerging economies, we have
 delivered a robust financial performance.  Strengthening prices,
 increased volumes and a continued strong focus on operational
 efficiency have contributed to a substantial growth in Net Sales of Rs.
 30,248 Crore, a 23.4% increase compared to last year and a record PBDIT
 of Rs. 10,522 Crore. EPS increased by 28% during the year. We continue to
 deliver volume growth, with significant increases achieved in zinc-lead
 and commercial energy businesses.
 
 The balance sheet remained strong with cash and liquid investments of
 Rs.  22,617 Crore.
 
 Operational Performance
 
 The ramp up of our various expansion projects contributed to record
 production volumes in the year.
 
 Zinc production at our operations in India rose significantly as the
 210 kt per annum smelter at Dariba commissioned at the end of the
 financial year 2009-10 ramped up.  We are also well on our way to
 becoming one of the worlds largest integrated silver producers, as we
 ramp up production at the Sindesar Khurd (SK) mine. Once the SK mine
 reaches full capacity in FY 2012, we will have a capacity of 16 million
 ounces of refined silver per annum.
 
 We started two 600 MW units of the 2,400 MW power plant at Jharsuguda
 and also announced the addition of a fourth 660 MW unit at the Talwandi
 Sabo Power Limited (TSPL) project in Punjab, taking the total capacity
 of TSPL to 2640 MW. The power generated by this new unit will be
 largely sold in the merchant market, significantly enhancing the
 overall return of this project.  The first phase of our 150 MW wind
 power expansion project has been commissioned: when complete, this
 project will make us one of the largest wind power producers in India
 with a capacity of 273 MW.
 
 We remain committed to an integrated aluminium strategy, and we
 continue to engage in discussions with the Government of Orissa
 regarding access to alternative sources of bauxite for VAL.
 
 Acquisitions
 
 We completed the acquisition of the zinc assets of Anglo-American in
 the second half of the financial year, increasing our zinc-lead
 capacity to 1.5 million tonnes per annum. This acquisition makes us the
 largest producer in the world and extends our zinc footprint in Africa
 and Ireland.
 
 Reserves and Resources
 
 Exploration continues to be a major focus, and this year too, we have
 successfully added reserves and resources of 22.1 million tonnes in our
 Zinc-India business, increasing the life of our mines. The additional
 zinc reserves from the promising Gamsberg project acquired from Anglo-
 American Plc. Group further reinforce this firm foundation.
 
 Markets
 
 Commodity prices began rising again in the second half of the year, as
 euro - zone debt fears receded and developed economies stabilised.
 Demand from the Asian economies remained robust, although Chinese
 markets cooled, and the on-going Indian growth story remains a key
 contributor to our success. The long term trend of urbanisation and
 accelerated infrastructure development will continue to drive strong
 demand for our products.
 
 Strong Financial position
 
 Over the years, we have consistently generated strong free cash flow.
 The net cash as at 31 March 2011 was Rs.22,617 Crore.
 
 Sustainability
 
 We remain committed to sustainable development, focusing on the
 priorities of good governance, environmental footprint reduction and
 creating value for all our stakeholders. The international consulting
 firm, Scott Wilson, was engaged by our parent Vedanta Resources Plc.
 last year to review our sustainability practices.  Some of its key
 recommendations were to deliver an improved Code of Conduct and
 Practices, to widen the remit of the Health, Safety and Environment
 Committee and reconstitute it as the Sustainability Committee and to
 enhance the scope of Environmental Impact Assessments (EIAs) for large
 new projects in line with international best practice. We are
 progressing well on implementing their recommendations while retaining
 our focus on continuing to improve our safety performance; contributing
 further to local communities; continuing to manage and minimise our
 impact on air, water and land; and maintaining a dialogue with
 stakeholders on an ongoing basis.
 
 Dividend
 
 The Board of Directors has recommended a dividend @ Rs. 1.1/- per equity
 share on face value of Rs. 1/- each (i.e.110%) for the financial year
 2010-11 on increased capital base subsequent to 1:1 bonus issue.
 
 People
 
 We believe that the people are the vital force of the organization. The
 HR philosophy is to recruit fresh, young and talented people and
 nurture them to become the future leaders and entrepreneurs. Your
 Company encourages employees to come up with innovative ideas and
 projects to show case their entrepreneurial skills.  The Company
 encourages a culture of ownership in everything we do and same is
 reflected the fact that many of our employees have become shareholders.
 Your Company is an equal opportunity employer and encourages more and
 more woman employees to join us and take leadership position.
 
 The Companys dedicated and talented workforce of more than 15,000
 people has assisted in driving our achievements and success. We remain
 committed to continuing to provide a challenging and rewarding work
 environment to all our employees.
 
 On behalf of the Board, I am thankful to all of them for their
 continuing support The Company continued to enjoy cordial industrial
 relations.
 
 I would like to thank all my fellow directors for their invaluable
 contribution, support and guidance. I take this opportunity to express
 my gratitude to all our stake holders who have reposed trust in our
 abilities and extended support to us.
 
 Outlook
 
 Looking forward, we anticipate continued growth in metal consumption
 lead by India and China, with tight supply in specific markets -
 particularly for copper and zinc.  The financial year 2011-12 is an
 important year for Sterlite, with significant growth in our production
 capacities as we ramp up many of our organic expansion projects. Higher
 commodity prices are driving up input costs in our industry; we believe
 that our structurally low-cost assets, combined with our continuous
 improvement culture, will enable us to mitigate the effects of this
 phenomenon.
 
 With our industry leading organic growth programme and the successful
 integration of our recent strategic acquisitions, Sterlite is very well
 placed to capitalise on the positive outlook for commodities demand and
 to continue to deliver growth and long- term value for our
 shareholders.
 
 Anil Agarwal,
 
 Chairman