1.  The shareholders in annual general meeting held on 11 June 2010
 approved sub-division of equity share of Rs. 2 into equity share of Rs. 1
 each fully paid up, and allotted bonus shares in the ratio of 1:1 post
 sub-division. The bonus shares have been issued by capitalising the
 Security Premium Account. This has resulted in increase in issued and
 paid up equity share capital from Rs. 168.08 Crore to Rs. 336.12 Crore.
 
 2.  In terms of Scheme of Arrangement (Scheme) as approved by the
 Honble High Court of Judicature at Mumbai, vide its order dated 19
 April 2002 the Company during 2002-2003 reduced its paid up share
 capital by Rs. 10.03 Crore. There are 3,75,544 equity shares of Rs. 1 each
 (Previous Year 2,05,615 equity shares of Rs. 2 each) pending clearance
 from NSDL/CDSL. A Special Leave Petition filed in the Honble Supreme
 Court of India against the judgement of Honble High Court of Mumbai by
 SEBI and Department of Company Affairs has been inter-alia dismissed.
 The Company has filed application in Honble High Court of Mumbai to
 cancel these shares, the decision on which is pending.
 
 3.  In accordance with the Accounting Standards (AS-28) on Impairment
 of Assets, during the year the Company has carried out a review to
 identify whether the recoverable value of any fixed assets is lower
 than its book value and accordingly no provision is created during the
 current year.
 
 4.  Arising from the Announcement of the Institute of Chartered
 Accountants of India (ICAI) on 29 March 2008, the Company has, since
 2007-08, chosen to early adopt Accounting Standard (AS) 30, Financial
 Instruments: Recognition and Measurement. Coterminous with this, in the
 spirit of complete adoption, as have been announced by the ICAI, the
 Company has also implemented the consequential limited revisions in
 view of AS-30 to certain Accounting Standards. Accordingly,
 
 (i) Current investments which under AS-13 Accounting for Investments
 are carried at the lower of cost and fair value, have been accounted
 for at fair value resulting in investment being valued at Rs. 112.85
 Crore (Previous Year Rs. 53.20 Crore) above their cost and the profit
 before tax being higher by Rs. 90.12 Crore (Previous Year lower by Rs.
 18.00 Crore) and Investment revaluation reserve being higher by Rs. 19.75
 Crore (Previous Year Rs. 32.60 Crore).
 
 (ii) In case of 4% Convertible Senior Notes, issued in October 2009,
 the conversion option has been measured at the fair value through
 Profit & Loss Account and the Notes carried at amortised cost. If AS 30
 had not been adopted for this transaction, other income would have been
 lower by Rs. 314.11 Crore (Previous Year Rs. 58.66 Crore) for the year
 ended 31 March 2011, interest & finance charges would have been lower
 by Rs. 93.48 Crore (Previous Year Rs. 42.71 Crore) for the year ended 31
 March 2011 and profit after tax would have been lower by Rs. 147.35 Crore
 (Previous Year Rs. 10.65 Crore) for the year ended 31 March 2011.
 
 5.  The Company offers equity-based award plans to its employees,
 officers and directors through its parent, Vedanta Resources Plc.  [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 and subsequently further awards were granted in the
 respective years. 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 which 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, on 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 2011  6.36
 Crore (Previous Year Rs. 4.67 Crore). The Company considers these amounts
 as not material and accordingly has not provided further disclosures.
 
 6.  During the previous year 2009-10, the Company had provided Rs. 273.53
 Crore (being the draw down of USD 50 million Letter of Credit and other
 expenses relating to termination of Purchase and Sale Agreement for
 ASARCO) as exceptional item. During the month of March 2010, ASARCO had
 filed a complaint against the Company and Sterlite (USA) in the US
 Bankruptcy Court for the Southern District of Texas, Corpus Christi
 Division, for the alleged breach of the Purchase and Sale Agreement
 signed in May 2008. The allegation among other things includes a
 refusal to pay $ 2.60 billion purchase price and refusal to above
 liabilities and contractual obligation by the Company and its wholly
 owned subsidiary Sterlite (USA).The Company has refuted the claim and
 filed a response to the application. Bankruptcy Court trial on the
 matter is fixed from 13 June 2011 through 17 June 2011.
 
 7. The employees gratuity fund scheme is, managed by Life Insurance
 Corporation of India (LIC), a defined benefit plan. The present value
 of obligation is determined based on actuarial valuation using
 projected unit credit method, which recognise each period of service as
 giving rise to additional unit of employee benefit entitlement and
 measures each unit separately to build up the final obligation. The
 obligation for short-term compensated absences is recognised on actual
 basis for the portion of accumulated leave which an employee can
 encash.
 
 8.  (a) As per the Honble Supreme Court order dated 08 August 2008 in
 IA No. 2134 of 2007 in WP No. 202 of 1995, the Govt. of Orissa
 had floated a special purpose vehicle in the name of Lanjigarh Project
 Area Development Foundation (LPADF) on 06 October 2009 with an
 authorised capital of Rs. 0.05 Crore in which stake holders were
 Government of Orissa, Orissa Mining Corporation Ltd.  (OMCL) & Sterlite
 Industries (India) Limited. LPADF had been formed as a Sec.25 company
 to undertake developmental / welfare activities in the Lanjigarh
 Scheduled Area. Lanjigarh Schedule Area Development Foundation (LSADF)
 was incorporated on 23 January 2009 as an SPV for carrying welfare
 activities for the people of Kalinandi and Rayagada District in the
 State of Orissa. After incorporation of LPADF by State of Orissa in
 line with Supreme Court order, LSADF proposed to be considered as SPV
 was dissolved on 02 August 2010 and the name is striken off by the
 Registrar of Companies u/s 560 of the Companies Act, 1956.
 
 (b) The Company (SIIL) entered into Joint venture agreement with Orissa
 Mining Corporation Limited (OMCL) and incorporated South West Orissa
 Bauxite Mining Private Limited (SWOBM) with equity contribution of Rs.
 0.05 Crore in the ratio of 74 (SIIL):26 OMCL). SWOBM was incorporated
 on 15 July 2009 to carry on the business of raising and mining bauxite
 and alumina bearing ore from the bauxite mines in the State of Orissa.
 As per JV agreement dated 05 October 2004 and subsequent amendment
 thereto in 2009, said company was to enter into Raising contract
 agreement with OMCL, the lessee of Niyamgiri Mines to raise bauxite
 from said mines. Since Ministry of Environment & Forests (MoEF) has not
 granted approval for forest diversion, hence no mining activity can be
 undertaken now and accordingly the raising contract agreement has not
 been entered into.
 
 9.  Advance recoverable in cash or in kind includes Rs. Nil (Previous
 Year Rs. 0.06) due from Lake City Ventures Private Limited (formerly
 known as Sterlite Shipping Ventures Private Limited) in which directors
 are interested. Maximum amount outstanding at any time during the year
 is Rs. 0.06 Crore (Previous Year Rs. 0.06 Crore).
 
 10.  General expenses include donations aggregating to ` 0.10 Crore
 (Previous Year ` 12.00 Crore) made during the year to political
 parties.
 
 11.  During the previous year, the Company had raised USD 500 million
 through issue of 4% Convertible Senior Notes of USD 1,000 each at an
 initial conversion price of USD 23.33 per ADS. The Notes are
 convertible into 42.8688 ADSs per Note subject to adjustment in certain
 events. As per AS 30 at inception, the issue proceeds of the same has
 been allocated to the conversion option (which is an embedded
 derivative) with the residual value allocated to the Notes to establish
 its initial carrying cost. Subsequently, the conversion option has been
 measured at fair value through profit and loss with changes in fair
 value to be recognised in the Profit & Loss Account, and the Notes been
 carried at amortised cost. As on 31 March 2011, conversion option
 amounting to  275.71 Crore (Previous Year  596.30 Crore) is included
 along with 4% Convertible Senior note of US$ 1,000 per note in Schedule
 4 - Unsecured Loans.
 
 12.  In response to the various writ petitions filed in the year
 1996-1998 challenging the environment clearances for setting up of the
 copper smelter at Tuticorin, the Madras High Court by its order dated
 28 September 2010 ordered the closure of the smelter at Tuticorin. The
 Company has filed Special Leave Petition (SLP) in the Supreme Court of
 India against the impugned order of Madras High Court. The Supreme
 Court of India on 18 October 2010 heard the SLP and stayed the order of
 the High Court and which has been extended from time to time. The
 matter is listed on 29 April 2011 for further hearing.
 
 13.  The Company had recognised an amount of 57.80 Crore in the year
 2008-09 as claims receivable on account of insurance claim due to the
 cooling tower failure, based on a provisional estimate basis. During
 the year, the Company has written off an amount of  16.00 Crore
 (Previous Year Rs. 17.62 Crore) in the Profit & Loss Account based on the
 revised estimates by the Company.
 
 14.  During the year, the Central Excise Department has issued an
 exparte notice for reversal of Cenvat credit of 315 Crore along with
 interest of 8.78 Crore for non compliance of Rules 4(5a) and 4(6) of
 the Cenvat Credit Rules, in respect of non-return of job work challans
 for the period March to September 2009 within stipulated time. In
 addition, the Department has also alleged violation of Advance license
 conditions for the period 2005-2009. No show cause notice in this
 regard has been served on the Company. The Company has obtained a Writ
 for stay on recoveries / further proceedings from the Honourable Madras
 High Court, Madurai Bench, in both the matters. The Company has also
 been legally advised that the alleged charges are not legally
 sustainable and there is no financial liability on the Company.
 
 15.  (a) Net exchange difference (gain)/loss amounting to  (79.92)
 Crore [Previous Year (261.27) Crore] related to procurement of raw
 materials has been accounted under raw material consumption.
 
 (b) Aggregate net exchange gain included in the Profit and Loss Account
 including (a) above for the year is  82.84 Crore (Previous Year Rs.
 270.78 Crore)
 
 16.  Disclosure on Financial and Derivatives Instruments
 
 a) Derivative contracts entered into by the Company and outstandings as
 at Balance Sheet date.
 
 (i) To hedge currency related risks, the Company has entered into forex
 forward covers. The nominal amounts of such derivative contracts
 outstanding as at Balance sheet date are ` 1,543.76 Crore (net of
 Forward Sell covers of ` 227.19 Crore) (Previous Year ` 1,690.93
 Crore).
 
 17.  The figures of previous year have been recasted, rearranged and
 regrouped wherever considered necessary.