NOTE 1. CORPORATE INFORMATION
 
 Sterlite Technologies Limited (the company) is a public company
 domiciled in India and incorporated under the provisions of the
 Companies Act, 1956. Its shares are listed on two stock exchanges in
 India. The company is primarily engaged in the manufacture and sale of
 Power and Telecom products and solutions. Telecom products and
 solutions mainly include integrated optical fiber, other telecom
 products such as fiber optical cables, copper telecom cables,
 structured data cables, access equipments, fiber connectivity and
 system integration solution offerings for telecom networks and other
 service providers. Power products and solutions mainly include power
 transmission conductors and cables.
 
 NOTE 2. BASIS OF PREPARATION
 
 The financial statements of the company have been prepared in
 accordance with generally accepted accounting principles in India
 (Indian GAAP). The company has prepared these financial statements to
 comply in all material respects with the accounting standards notified
 under the Companies (Accounting Standards) Rules, 2006, (as amended)
 and the relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on an accrual basis and under the
 historical cost convention, except in case of assets which have been
 impaired.
 
 The accounting policies adopted in the preparation of financial
 statements are consistent with those of previous year, except for the
 change in accounting policy explained below.
 
 Note 3: Employee Stock Option Scheme
 
 The company has granted employees stock options plan, 2006 (ESOP) and
 employees stock options plan, 2010 (ESOP) to its employees pursuant to
 the resolution passed by the shareholders at the extraordinary general
 meeting held on March 13, 2006 and annual general meeting held on July
 14, 2010 respectively. The Company has followed the fair value method
 (Black Scholes Options Pricing Model) for the valuation of these
 options. The compensation committee of the company has approved six
 grants vide their meeting held on June 14, 2006; March 19, 2007;
 September 28, 2007; June 14, 2008; June 26, 2009 and December 29, 2011
 As per the plan, Options granted under ESOP would vest in not less than
 one year and not more than five years from the date of grant of such
 options. Vesting of options is subject to continued employment with the
 company. The plan is an equity settled plan.
 
 The company has charged Rs. 1.00 Crores (Rs. 2.02 Crores) to the
 statement of Profit and loss in respect of options granted under ESOP
 scheme 2006 and options granted under ESOP scheme 2010.
 
 Note 4: Operating Lease
 
 The company has taken office buildings on operating lease. The lease
 terms are for periods of three to nine years and renewable at the
 option of the company.
 
 There is no escalation clause in the lease agreement. Disclosures in
 respect of operating leases of office buildings as per the requirement
 of AS-19 on Leases, notified under the Rules are as under:
 
 a) Lease payments recognised in the statement of Profit and loss for
 the year is Rs. 4.31 Crores (31 March, 2011: Rs. 3.05 Crores).
 
 b) The future minimum lease payments payable over the next one year is
 Rs. 2.64 Crores (31 March, 2011: Rs. 1.55 Crores).
 
 c) The future minimum lease payments payable later than one year but
 not later than five year is Rs. 1.65 Crores (31 March, 2011: Rs. 2.66
 Crores).
 
 Note 5: Capital Commitments
 
 a) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) are Rs. 38.07 Crores (31
 March, 2011: Rs. 52.65 Crores).
 
 b) As on March 31, 2012, the Company has commitments of Rs. 897.18
 Crores (31 March, 2011: Rs. 1,126.59 Crores) relating to further
 investments in subsidiaries.
 
 Note 6: Contingent Liabilities
 
                                   31 March, 2012    31 March, 2011 
                                   Rs. in Crores     Rs. in Crores
 
 1) Disputed liabilities in appeal
 
 a) Sales tax                           0.43             0.59
 
 b) Excise duty (Including excise 
 duty case in supreme court, refer note
 8 & note 44(A))                      248.18           247.07
 
 c) Customs duty                       67.24            74.31
 
 d) Service tax                         -                2.48
 
 e) Income tax                          6.92            11.26
 
 f) Claims lodged by a bank against 
 the company (*)                       18.87            18.87
 
 g) Claims against the company not 
 acknowledged as debt                  22.32            19.80
 
 2) Outstanding amount of export 
 obligation against advance licence    36.58            87.19
 
 3) The company has given corporate guarantee to the Income Tax
 department on behalf of group companies. The outstanding amount is Rs.
 114.00 Crores (31 March, 2011: Rs. 114.00 Crores) on this account as at
 the year-end.
 
 4) The company has given corporate guarantee to long term transmission
 customers and State Bank of India on behalf of its subsidiary company.
 The outstanding amount is Rs. 119.59 Crores (31 March, 2011: Rs. 30.00
 Crores) on this account as at the year-end.
 
 The Company has not provided for disputed sales tax, excise duty,
 customs duty and service tax arising from disallowances made in
 assessments which are pending with appellate authorities for its
 decision.
 
 It is not practical to indicate the uncertainties which may affect the
 future outcome and estimate the financial effect of the above
 liabilities.
 
 (*) In an earlier year, one of the bankers of the company had wrongly
 debited an amount of Rs. 18.87 Crores, towards import consignment under
 Letter of Credit not accepted by the company, owing to discrepancies in
 the documents. The company has f led the case against the bank in the
 High Court of Mumbai. The bank has also f led a claim against the
 company in the Debt Recovery Tribunal.  The company does not believe
 that any liability will arise to the company.
 
 Note 7: Share Application Money
 
 Share application money pertains to the amount of exercise price of Rs.
 2 per share for 22,822 ESOPs for which equity shares have been
 subsequently allotted on April 17, 2012.
 
 Note 8: Accounting for Amalgamation
 
 The Hon''ble High Court of judicature at Mumbai vide its Order dated
 October 21, 2011 approved the Scheme of Amalgamation of Sterlite
 Infra-Tech Limited (100% Subsidiary of the company) with the company.
 The subsidiary was engaged in the manufacture of optical fibre.  The
 appointed date as per the Scheme of Amalgamation is April 1, 2011.
 Sterlite Infra-Tech Limited stands amalgamated with the company ef
 -fective from the appointed date. The company has accounted for the
 amalgamation under the pooling of interests method. The impact of
 amalgamation has been given in the financial statements w.e.f. April
 01, 2011.
 
 Note 9: Other Notes
 
 A.  The company had in an earlier year received an order officeSTAT
 upholding the demand of Rs. 188 Crores (including penalties and
 excluding interest)(31 March 2011: Rs. 188 Crores) in the pending
 excise/custom matters on various grounds. The company''s appeal with the
 Honourable High Court of Mumbai was rejected on the grounds of
 jurisdiction. The company preferred an appeal with the Honourable
 Supreme Court of India against the order office STAT which has been
 admitted. The company has revaluated the case on admission of appeal by
 the Honourable Supreme Court. Based on their appraisal of the matter,
 the legal advisors/consultants are of the view that under most likely
 event, the provision of Rs. 4.50 Crores made by the company against the
 above demand is adequate. The management is conf dent of a favourable
 order and hence no further provision is considered against the said
 demand.
 
 B.  There are no amounts due and outstanding to be credited to Investor
 Education and Protection Fund.
 
 Note 10: Related Party Disclosures
 
 Related party disclosures as required by AS 18, Related Party
 Disclosures issued by the ICAI and notified under Rules are given
 below:-
 
 (a) Name of related party and nature of its relationship: (i)
 Subsidiaries
 
 Sterlite Display Technologies Private Limited
 
 Sterlite Infra-Tech Limited (refer note 43)
 
 East North Interconnection Company Limited
 
 Sterlite Grid Limited (Formerly known as Sterlite Transmission Projects
 Private Limited)
 
 Jabalpur Transmission Company Limited
 
 Bhopal Dhule Transmission Company Limited
 
 Sterlite Global Ventures (Mauritius) Limited
 
 Jiangsu Sterlite and Tongguang Optical Fiber Co. Limited
 
 Sterlite Networks Limited
 
 Sterlite Technologies Americas, LLC
 
 Sterlite Technologies Europe Ventures Limited
 
 (ii) Key management personnel (KMP)
 
 Mr. Pravin Agarwal Dr. Anand Agarwal
 
 (iii) Entities where key management personnel/relative of key
 management personnel have significant influence (EKMP)
 
 Sterlite Industries (India) Limited
 
 Fujairah Gold FZE
 
 Bharat Aluminium Company Limited
 
 Hindustan Zinc Limited
 
 Sterlite Energy Limited
 
 Vedanta Aluminium Limited
 
 Vedanta Resources PLC
 
 (iv) Holding Company
 
 Volcan Investments Limited (Ultimate holding company) Twin Star
 Overseas Limited (Immediate holding company)
 
 (b) There are no provisions for doubtful debts or no amounts have been
 written of in respect of debts due to or from related parties.
 
 Note 11: Segment Reporting
 
 As permitted by paragraph 4 of Accounting Standard-17 (AS-17), ''Segment
 Reporting'', if a single financial report contains both consolidated 
 financial statements and the separate financial statements of the parent,
 segment information need be presented only on the basis of the
 consolidated financial statements. Thus, disclosures required by AS-17
 are given in the consolidated financial statements.