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48-73ManagementDiscussionand Analysis

02-47StrategicReport

74-97BusinessResponsibilityReport

98-132StatutoryReports

134-233FinancialStatements

E cientAluminium assets

in India.Read more.

Among the largestindependentPower producersin India.Read more.

Worlds largestintegrated Zinc-lead producer.Read more.

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Operates one ofthe worlds moste cient Copper smelters.Read more.

Behavioural safety based signage, Black Mountain Mine

511,200 man hours Training for employees and contract workers on health and safety topics

Usage of mandatory PPE is a must at all our sites

20 of 24 sites OHSAS 18001 certi ed

PRINCIPLE 2

Safety and Optimal ResourceUtilisation Across ProductLifecycleProduct StewardshipAs primary producers, we have limited control ofthe full lifecycle and the way in which productsare produced and disposed. However, the businessis committed to ensure that the beginning of thelifecycle adheres to appropriate internationalcommodity trading standards. To support this, 20of our 24 plants are certi ed to OHSAS 18001,ISO 9001 and ISO 14001 this covers the entiremanufacturing lifecycle assessment.

Our products are sold through commodity marketsand used in a large number of industries. Our nalproducts are re ned metals and meet the requiredinternational standards (such as LME) for enteringthe commodity market. To ensure the safe handlingof our products, we use a Material Safety DataSheet which includes information on physical data,health e ects, storage and disposal. We also use a

Technical Services Resource for quality assurance.Together with scorecards, all this informationis available to support our customers, allowingthem to have a full, detailed understanding ofour products and their composition. We seek tocomply with all prevailing standards and lawsrelated to marketing communications, including

advertising, promotion and sponsorship of the

country where we operate.Over the reporting period, no cases of non-compliance with relevant regulations andvoluntary codes concerning the health andsafety impacts of our products and services wereobserved or reported.

Health and SafetyWe owe a high level duty of taking care of themany people who work with us, and we take thatobligation seriously.

A culture of health and safety compliance startswith our training programmes, which are asinclusive as possible. Our management standardsemphasise the training of both employees andcontractors based on role, risk and responsibilities,and use di erent learning methods to cater forvarious needs for example, videos and classroomtraining.

SafetyWe place great importance on understanding andmanaging our safety performance across locations.

Our core culture of Safety First permeates acrossour employees, contractors and others impactedby our operations.

Promoting a strong culture of safety to allemployees and contractors is fundamental to ourobjective of creating a zero-harm environmentacross our operations. We strive to create a

To ensure the safe handling of our products, we use a MaterialSafety Data Sheet which includes information on physical data,health effects, storage and disposal. We also use a Technical ServicesResource for quality assurance.

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National Safety Week celebration, BALCO

30% decreasein Lost Time Injury Frequency Rate (LTIFR) compared to last year

Occupational Health Centre, HZL

70,000 Medical examinations carried out across sites

zero-harm environment across all our operations.

We seek to achieve this through regular on-sitetraining. Besides, we also strive to ensure thatour site management teams are fully engagedin endorsing and promoting a culture of careand diligence. We encourage employees andcontractors to report near misses without anyfear of recriminations - to develop a culture ofconstant safety monitoring and evaluation. Wehave launched and rolled out a pan-organisationUnsafe Conditions Elimination Programme.

There has been an overall declining trend in theincident rates experienced by the Group, with

a lost time injury frequency rate (LTIFR) in thereporting period of 1 (a 30% decrease comparedto last year) accounting for 4,173 man-dayslost. Regrettably however, we did experience12 fatalities in 2012-13. Key short falls oridenti ed issues are addressed and a time framefor the business to meet the shortfalls is agreedcollectively with the leadership team.

HealthWe understand that due to the nature of ouroperations associated health risks may arise.

We therefore are committed to understanding,managing and mitigating them. Our occupationalhealth standard helps us minimise the adverseimpact of our operations on the health of ourworkforce. All units maintain a health managementsystem that minimises, as far as is reasonablypractical, the hazards and risks to employees andcontract employees.

From the beginning of an employees career, we

have processes in place to manage and monitorhealth risks. This includes a pre-employmentmedical check followed by periodical medicalcheck-ups with on-site medical professionals tomonitor the occupational exposure limits. In 2012-13, nearly 70,000 medical examinationswere conducted across sites, including blood leadand cadmium testing, chest X-rays, audiometrictests and sight tests.

Our sites have health and wellness facilities totackle diabetes, high blood pressure and work-life balance. In order to support colleagues, our

full-time employees receive medical insurance,which also extends to dependants. All contractemployees are also able to access our medicalfacilities and are covered by the Employee StateInsurance Act, Group insurance and the WorkmanCompensation Act.

Our occupational health standard helps us minimise the adverseimpact of our operations on the health of our workforce. All unitsmaintain a health management system that minimises, as far asis reasonably practical, the hazards and risks to employees andcontract employees.

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Employees in the Control Room, HZL

4.62 million man hoursTraining provided to employees during FY 2012-13

No di erentiation between gender (women and men employee), SEL

1:1 ratio

in terms of entry level wages, irrespective of gender

PRINCIPLE 3

Employee Well-BeingOur employees are our key assets and oursuccess depends on them. Our people strategyis founded on this belief and is designed torecruit, develop and retain the talented workforcethat run our businesses. We are committed toproviding our employees with a safe and healthywork environment. Through a high degree ofengagement and empowerment we enable themto realise their full potential, creating a highperformance work culture.

Training and developmentWe recognise that in order to serve the marketsin which we operate and to meet our growthstrategies, we must invest in the development andretention of our people to drive innovation ande ciencies within the business.

As a high proportion of our workforce join asnew graduates, managing career progression anddevelopment is very important to the business,particularly to ensure talent retention.

To manage a new recruits transition from Campusto Corporate, we have a structured orientationprogramme as well as a mentoring programme.An annual training calendar of events andopportunities is developed at both Group andbusiness unit levels. Training is carried out on-siteby both internal and external experts. Themes

covered include health and safety as well as

technical skills training.Our Star of Business Accelerated CompetencyTracking and Up-Graduation (ACT-UP) programmesystematically identi es high potential talent atan early stage in order to provide a fast growthtrack through the business. To qualify for theprogramme, individuals are assessed against ourcompetency model which includes core attributes,behaviours and leadership style

Workforce and diversityWe aim to be an industry-leading employerwith an inclusive approach that is designed toensure a rich diversity in our employee base. Ourrecruitment, remuneration and promotion policiesand procedures are designed to avoid all formsof discrimination and ensure equal opportunity,regardless of race, nationality, religion, gender, age,sexual orientation, disability, political opinion, orany other basis.

Challenges to our diversity aims do remain,particularly around the perception of many thatthe sector is male-dominated, especially at sitemanagement level. In addition, we are conscious of the need for exible working hours and shiftwork to cater for childcare. We ensure that theratio of entry level wages meets or exceedsthe legal requirements and complies with allapplicable laws.

Our people strategy is founded on this belief and is designed torecruit, develop and retain the talented workforce that run ourbusinesses. We are committed to providing our employees with asafe and healthy work environment.

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Collective bargainingWe aim to have constructive relations with allemployees and labour unions in the locationswhere the business operates. In this regard,we do not believe that any country where we

have operations represents a risk to freedom ofassociation and collective bargaining, and weuphold this right at all the operations we manage.We have collective bargaining agreements withour non-supervisory sta at the HZL, BALCO, Zincinternational and CMT operations.

Workforce WelfareOur operations tend to be located in remoteregions where access to health facilities is oftenlimited. In order to ensure that employees andcontractors are able to access these services,

we have on-site medical facilities, local hospitalsand supporting medical sta available to ouremployees, contractors and local communitymembers. Additionally, in order to encourage ahealthy work-life balance around our sites, ourbusinesses promote social gatherings organisedby Events Committees. Employees are activelyencouraged to include their families in theseevents and also in the use of our providedrecreational facilities.

Group of happy employees, HZL

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Livelihood activities, HZL

` 6,200 CroreContributed to the Indian Exchequer by way of taxes and royalties

PRINCIPLE 4

Engaging Stakeholders Sustaining ValueBuilding Strong Relationships is the second pillarof our sustainability model. Our commitmentto building strong relationships is based on theunderstanding that establishing and maintainingclose, responsive links with our stakeholders isan essential part of our journey as a sustainablebusiness. Accordingly, over the past year, we havecontinued to develop and enhance our stakeholderengagement processes.

We e ectively engage with our stakeholders(Employees, Communities, Shareholders, Lenders,Civil societies, Government and our Industry) byunderstanding their key concerns and opinionsand our materiality process has been an importantaspect of our approach to achieving thisunderstanding. This year we further strengthenedthis process as our parent company, Vedanta plc,commissioned an external assessment whichencompassed detailed consultations with abroad range of internal and external stakeholderrepresentatives. The results and analysis of the

process enabled us to con rm the key prioritiesand stakeholders material issues. Our Social Policyand the supporting technical standards providestructure to the way we manage our stakeholderrelationships. These standards require all Sterliteoperations to identify stakeholders and determineengagement plans together with a method torecord and reply to stakeholder enquiries andgrievances.

In the course of the year, we have proactivelymet with several stakeholder groups includingcivil society organisations, media and industryassociations, to increase awareness about theGroup, explain our point of view and answer anyqueries that they might have. We use numerouschannels of communication which include one-on-one and large format meetings and brie ngs, and

online and print communications. Our HZL, BALCO,

Sterlite Copper, Lisheen Mines, Skorpion Zinc andBlack Mountain Mine (BMM) all produce in-house journals newsletters to engage with employees,our wider industry and communities and hostgovernments.

Communicating progress on the GamsbergProject Black Mountain MineThe BMM-Gamsberg project is one of the moststrategic projects of the Groups Zinc Internationalbusiness and an integral plan to harness thepotential of BMM assets and to sustain growth.

To ensure both transparency in the developmentof the project and that our stakeholdersunderstand the project aims and the processof its development, updates to the GamsbergEnvironmental and Social Impact Assessment(ESIA) are communicated by postings on theCompany website www.vedantazincinternational.com. Interested stakeholders are directed to theproject website, which has up-to-date informationon the status of the ESIA. This site gets updatedregularly, particularly when critical milestones are

completed.All documents including reports and details ofcommunity engagement can be found on thewebsite. The draft ESIA report has also beenplaced in public places including the local libraryand municipality o ces. Advertisements have alsobeen placed in four regional newspapers to createawareness of the publication of the draft ESIA.

A third open-house public meeting was scheduledto be conducted in the rst half of 2013 todisclose the ndings of the ESIA (prior to its nal

submission) in addition to focus group meetingsfor relevant stakeholders including farmers, NGOsand the municipality. We intend to distributea non-technical summary of the draft to allparticipants, in both English and Afrikaans.

We effectively engage with our stakeholders (Employees,Communities, Shareholders, Lenders, Civil societies, Governmentand our Industry) by understanding their key concerns and opinionsand our materiality process has been an important aspect of ourapproach to achieving this understanding.

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Stakeholder Management

Stakeholders Engagement Mechanism Initiatives by the CompanyCommunities& Civil Society(NGOs)

Written communication/ need-baseddiscussions/ meeting with communityrepresentatives

Open dialogue

Survey & PRAs

Giving educational support byorganising a study centre andgiving scholastic excellenceawards and scholarships

Arranging monthly rural healthcamps and rural health unit

Women Entrepreneurship: Sterliteincome generation projects withSHG

Developing rural infrastructure:Total sanitation, renovationworks for schools, model villagedevelopment

Employment generation throughcoastal livelihood project

HIV - AIDS awareness Horticultural trials with local

farmers Model Village Sterlite Old-Age Widow Support

ProgrammeGovernment &Regulators

Monthly reports Monthly inspections

Regular compliance with rules,regulations & stipulations

Submission of monthly reports Immediate response by the way

of corrective action on issuesraised by the Governmentauthorities

Employees Intranet facilities Newsletters Monthly and quarterly Training programmes Employment suggestion scheme Communication meeting

Employee suggestion scheme Spot recognition scheme Employee retention bonus Event management team CEO kitty Team of the month Mentor-Mentee ideas@sterlite Employee of the month & year

Family get-togetherCustomers Discussions/ personal interactions on a

daily basis Plant Visit

Customer satisfaction survey Online access through

E-Salesmate Faster response for customer

complaints Arranging for plant visit

Suppliers/Transporters

Discussions/ personal interactions on adaily basis

Plant Visit

Vendor meets Drivers training programme for

safety Vendor Satisfaction Survey Evaluation of Vendor Sites SAP Supplier Relationship

Management (SRM) module

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Stakeholders Engagement Mechanism Initiatives by the CompanyContractEmployees

Induction programme Training programme

Rewards & Recognition

Welfare facilities for Contractorsas a part of HR initiatives

Contractor Safety ManagementCell

myideas@sterlite

Safety Performance BonusEducationalInstitutions

Management Development programmes

Academic interactions

Employees are guest faculties atleading institutions

Employees are sent forManagement Developmentprogrammes

Alumnus interaction with studentsduring recruitment

Investors/

Shareholders

Redressal of investor grievances

Quarterly/half-yearly results Website,Newspaper ads

Annual reports

Annual Shareholders meet

HZL Self Help Group training volunteers with SHG women

49,500 Direct and indirect employment opportunities provided

Self Help Group women making p ickle, BALCO

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PRINCIPLE 5

Promoting Human RightsProtecting and respecting human dignity is centralto our everyday business operations. Moreover, asa global company working in a range of developingcountries, we believe we have an importantcontribution to make through the example we setby our behaviours.

Human rights incorporates socio-political andeconomic issues that have implications for theresponsibilities of our business as an employer,as a global company with numerous suppliersand as a responsible corporate citizen workingwithin communities. Over the past year, we have

deepened our understanding of the risks andopportunities associated with human rightsmanagement.

Human rights managementThrough our human rights policy we continue todevelop and follow the UN Guiding Principles.Our COC commits us to comply with all lawsand regulations, including the protection of thefundamental human rights of all our employees.Our commitment to human rights is backedthrough the practical application of our standards

and providing focused training programmes,including those on our human rights policy.

Led by the Vedanta Sustainability Committee, in2012-13 we undertook internal reviews relatedto human rights and risk assessment. The humanrights audit and risk assessment review wascommissioned to ensure that all our business unitshave a clear understanding of the areas of possiblerisk pertaining to human rights. The objective ofthe review was to con rm that we are meeting allapplicable national and international legislation,guidelines and conventions on human rights withspecial reference to the UN Universal Declarationof Human Rights. The assessment con rms that thehuman rights policy is being implemented by allunits. The review also helped us in strengthening

our existing systems and delivering focusedtraining for our sta .

Forced and Child labourOur Code of Conduct expressly prohibits theuse of forced and child labour. This is upheld inall our dealings with contractors and vendors,with guidance provided to sites on working withcontractors and suppliers in order to eliminateany breach. In the reporting period, there were norecorded incidents of forced or child labour acrossany of our operations.

Our Employees are proud to be associated with us

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A variety of plants are grown as a part of plantation drive, Black Mountain Mine

20 of 24 unitsISO 14001 certi ed

Raw Water pond, SEL

0.17 MCM Rainwater harvested during the year

PRINCIPLE 6

Nurturing the EnvironmentProduct StewardshipAs a diversi ed natural resources company, we understand that the nature of our operationshas implications for the environment in di erentways through the emission of particulates,wastes generated in mining, re ning and smeltingprocesses, water consumption and changes in land use.

We are committed to minimise our environmentalfootprint from commencement of operations to thepost closure stage and to have zero environmentalincidents across our operations.

Environmental ManagementAs part of continual improvement, we planto obtain ISO 14001 certi cation at all ourunits which will allow us to regularly reviewthe Environmental Management System andmitigate the identi ed environmental impactsof our products and services. Our EnvironmentalTechnical Standard encapsulates our approach,through which we are obliged to avoid if possible,or otherwise minimise, adverse impacts onthe environment from our operations throughe ective management systems and processesthat work towards continuous improvement of ourenvironmental performance.

We strive for zero environmental incidents at all

our operations and have a robust internal processfor managing any that do occur, including a ratingsystem according to their severity. All businessesmonitor, report and investigate any incident withthe aim to apply lessons learned to prevent therecurrence of similar incidents, and share anylearnings across our operations. At the majority of our operations, environmental incident analysesare discussed in monthly operational reviews.

WaterOur operations exist in areas of varying

degrees of water stress. Consequently, wetake our water consumption and managementextremely seriously. Our water policy commitsus to recognising the social, economic andenvironmental value of water and the increasingglobal concern of water scarcity. We strive tominimise the amount of fresh water we consumeby reusing as much water as possible in ourprocesses.

During the reporting period, we withdrew morethan 115 MCM from natural and arti cial watersources whereas more than 100 MCM of water isused in our operations. None of the natural watersources are being a ected by our water withdrawalas water withdrawal in all of our operations is lessthan 5% of capacity of the source. Also, none ofthe water sources is designated as a protectedarea either nationally or internationally.

We strive for zero environmental incidents at all our operationsand have a robust internal process for managing any that do occur,including a rating system according to their severity.

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Water Management InitiativesMany of our operational processes have beendesigned to be zero discharge facilities, where thegenerated waste water is treated and completelyrecycled back into process areas such as slaggranulation, lime preparation and gas cleaningplants. Our subsidiaries like HZL and Sterlite

copper are harvesting and reusing rainwater inturn reducing water withdrawal. In addition tothese initiatives, e uent and sewage treatmentplants are installed at many locations for reusingwater at primary locations.

Sterlite Copper, Tuticorin installed a 10 millionlitres per day (MLD) desalination plant to reducestress on fresh water sources and to ensure asustainable source of water to its operations. Asa commitment to the surrounding community,the proposal included providing a portion of thedesalinated water to the nearby villages.

Hindustan Zinc Limited has undertaken a numberof major water initiatives in support of our goal ofsustainable water usage. By entering into a MoUwith the Government of Rajasthan for a Design,Build, Own, Operation and Transfer of a CityMunicipal Sewage Treatment Plant at Udaipur, we have taken a signi cant step in reducing the

stress on fresh water resources as well as securingour Rajasthan operations water supply. The plantwill have a 20 million litres per day (MLD) capacity,with the implementation of the project fast trackedand targeted for completion in approximately 18months.

Installation of adiabatic cooling towers(ACTs) to minimise evaporation loss - HZLHindustan Zinc installed its rst adiabatic coolingtowers (ACTs) to replace the conventional coolingtowers. An adiabatic cooling tower operates asan air-cooled heat exchanger, rejecting heat froma process cooling medium to the surroundingatmosphere by means of either dry cooling(convective heat transfer) or wet cooling (a doubleconvection cycle between water and air), in whichwater acts as the cooling medium for wetting theair and the cool air in turn cools the hot process

water. ACTs reduce water loss by almost 80%by operating in a closed circuit. Results from itsinstallation have been encouraging, with a 99%reduction in water loss in December 2012. Thoughthe same results will not be achievable in summermonths because of additional water consumptionfrom spray systems, a reduction of 80-85 % inwater loss is expected at a minimum.

During FY 2012-13, water conservation e orts successfully led to recycling 17% of the total water usedby the Sterlite group of companies, amounting to 18 million cubic metres equivalent to lling more than6,900 Olympic swimming pools.

Adiabatic Cooling Towers, HZL

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BiodiversityInherently, mining operations can a ect localecology. Our biodiversity policy commits usto minimise and mitigate biodiversity risksthroughout our operations. We strive to avoidadverse impacts on natural habitats. We plan themanagement of our land use in a manner thatallows biodiversity conservation to be integratedthroughout our projects life cycle, includingdecommissioning, closure and rehabilitation.

Biodiversity ManagementIn order to promote a best practice managementapproach to biodiversity, we have reviewed alloperations to identify which of our [major] sitesare operating within close proximity of protectedIUCN red list areas, important bird areas andkey biodiversity hotspots. We have mappedall our sites using the Integrated BiodiversityAssessment Tool (IBAT) mapping tool (https://www.ibatforbusiness.org/). Using the IBAT maps,we can determine if a site is located in or near

an important biodiversity area, or a potentialcritical habitat. The results of the biodiversity riskscreening programme have led us to prioritise thesubsequent biodiversity management processes.

Arti cial wetland for birds Skorpion ZincIn 2006, the environment team at Skorpion Zincnoticed an increase in bird mortality aroundthe re nerys lined evaporation and earthenponds. Skorpion Zinc Management appointed anindependent consultant, EcoMonitor, to carry out adetailed investigation on the cause of mortality.

The study revealed that bird mortality was dueto acid burns (primary) and metal poisoning(secondary).

Skorpion Zinc decided to construct an arti cialwetland (away from the re nery area) deliberatelymaking it more attractive to birds to encouragethem away from plant facilities. The bird pond isfar from the re nery and administration buildingand has limited human disturbance. Skorpion Zinchas also actively grown indigenous and rare plantsaround the pond area, and a specialist nursery toassist with this process has also been developed.

No further bird fatalities has been recorded sincethe completion of the bird pond and it successfullyattracted birds from the re nery. The pond hassince become a habitat rich in a diverse range ofbird species and is now also a nesting ground.

Raw water pond, VAL Lanjigarh

18 MCMWater recycled during the year, equivalent to 17% total water used

Solar Panels installed at SEL

280 thousand GJ

Energy saved due to conservation and e ciency improvement projects

Our biodiversity policy commits us to minimise and mitigatebiodiversity risks throughout our operations and we strive to avoidadverse impacts on natural habitats.

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Test sample patch of utilisation of Jaro x waste for road preparation, HZL

~ 1.4 million tonnes slagReused in useful applications such as road construction, land levelling andabrasive/cement industries

Energy and Climate ChangeMeeting growing energy demands while alsolimiting carbon emissions is a global challenge.As Sterlite Industries is part of an energyintensive industry our direct and indirect energyconsumption is in the order of 204 million GJ it isimportant that we carefully consider our approachto energy use, including our use of technology tomaximise e ciencies.

Energy and Climate Change managementOur operations to adopt and maintain global bestpractices in carbon and energy management tominimise Green House Gas (GHG) emissions.

Till date, we identi ed CDM projects with aCER potential of 1.2 million CERs. Out of these,projects with a potential 0.56 million units arealready registered on UNFCCC while projectswith 0.65 million units are at an active stage ofimplementation. In 2012-13, around 0.38 millionunits of CERs accrued and 0.21 million units of VERaccrued while 0.22 million units of CERs were sold,generating ` 4.7 Crore.

Air qualityWe closely monitor the extent of any impact thatour operations have on air quality and the e ectsand implications that this may have on employees,the communities local to our operations, and thebroader environment. We are committed to usingprocesses and technology that minimises anyparticulate release.

Air Quality ManagementWe require all our operations to apply air qualityprevention and mitigation measures wheremeasured (in the case of operational activities) orpredicted (in the case of new projects).

Air emissions monitoring include both AmbientAir Quality Monitoring (AAQM) as well as stackemissions monitoring.

WasteMining and resource production result in wasteproduction our hazardous and non-hazardouswaste generation is approximately 7 milliontonnes and how we manage and reduce our waste

is an important measure of how successful we arein managing our business sustainably.

Waste ManagementWe strive to minimise resource use across thelifecycle of each site. The Resource Use and WasteManagement Standard ensures that our operationsapply the principles of the Waste Hierarchy in thedesign and implementation of all of its operations.Accordingly, priority is given to avoidance andminimisation of waste generation followed byrecovery, reuse and recycling. The least preferred

option is disposal (land ll or incineration).Opportunities to eliminate, reduce, reuse, recycleand recover waste, wherever practicable, areidenti ed and implemented.

Waste Management InitiativesWe pay particular attention to hazardous and high-volume wastes such as our process and mineralwastes, which are stored in secured land ll sitesand, where appropriate, sold to recyclers. We alsoensure that non-hazardous waste is reused asmuch as possible within our operations to mitigate

the amount sent to land ll.

View of the Power Plant, Jharsuguda

~0.88 million tonnes fy ash Reused in land levelling and cement/brick manufacturing

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PRINCIPLE 7

Responsible Policy AdvocacyAt Sterlite, we pride ourselves for being able tomove with the times, anticipate the needs ofthe future and suggest pro-active measures forfurthering the interest of the Indian business andthe industry. We understand and are aware of thedynamics of the environment in which we operate.

As a member of the Indian Primary CopperProducers Association (IPCPA), we contribute toeconomic policy by anticipating future needs,responding to these challenges and preparingstakeholders to bene t from opportunities.Through its linkages with partner chambers,we represent the Indian copper industry acrossvarious forums.

The objectives of our Policy Advocacy frameworkinclude:

Work to building long-term relationships withgovernment entity and seek proactive solutionson behalf of the copper industry

Contribute knowledge of the global and Indiancopper industry to assist policy makers inunderstanding its true nature and potential

Anticipate policy and regulatory trends relevantto copper Industry as well as Sterlite Industries

Build comprehensive maps of relevantstakeholders / in uencers / decision makers

Represent the interests of the copper industryat policy, regulatory and industry meetings andparticipate in selected industry association likeFICCI , ASSOCHAM and CII meetings

Communicate to the a ected business unitsfor developing strategy for aligning to theforthcoming regulations

Provide sound platform for dialogue andsupport for in uencing strategy

Draw on technical strength of units to assistpolicy makers in understanding the complexand technical nature of the business

As part of the Governments advocacypolicy, we showcase our investments in theareas of education, health and livelihoodfor maintaining and improving communitiesand, as a result, strengthen our commitmentto partnering the Government in theseprogrammes

As a member of the Indian Primary Copper Producers Association(IPCPA), we contribute to economic policy by anticipating futureneeds, responding to these challenges and preparing stakeholders tobenefit from opportunities.

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Contribution to the Government policyAs the industry leader in copper, we were invitedto be a part of the committee advising the 12thFive Year Plan (1912-17) of India with respect tocopper. The committee, formed by the Federationof Indian Mineral Industries at the behest of theMinistry of Mines, made recommendations on a

ve year road-map for the copper industry and itschallenges to the Planning Commission.

In association with IPCPA, we work with theCommerce Ministry for making relevantrecommendations on various bilateral /Multilateral trade Agreements which are bene cialto the copper industry. We also forewarn theMinistry of any particular policy decision whichmay not provide a level playing eld to theindustry and may be ultimately harmful to thecopper industry. We have, through the IPCPAplatform, been able to advise the Governmenton initiatives which could increase the exports ofcopper out of India and save foreign exchange.These suggestions were incorporated in theamendment to the foreign trade policy madeby the Commerce Ministry and applicable fromJanuary 1, 2013.

As responsible corporate citizen, continue toengage with policy makers directly and throughindustry associations to seek a fair, equitable andforward looking non-discriminatory regulatoryregime in the interest of all stakeholders of our

business, growth of our country and for creatingvalue for our society. It is our constant endeavourto provide all relevant information throughinteraction with decision makers demonstratingbene ts of policy change and need for adoption ofenabling policy framework in the best interest ofall concerned.

Engineer inspecting cathodes, HZL

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Vedanta Bal Chetna Anganwadi project, BALCO

125,000 Children Across 4,600 centres reached through VBCA pre-school activities

Vocational training (Tailoring), HZL

2.2 million peopleBene tted through health, education and infrastructure provided

PRINCIPLE 8

Supporting InclusiveDevelopmentCommunity investment remains critical to ourengagement with local communities and thebusiness continues to have a needs-basedapproach to working with them.

Our community activity is delivered at a local,regional, and national level to ensure that thebusiness is able to e ectively maximise its impactin facilitating socio-economic development.

The majority of our initiatives are carried outin collaboration with community organisationsand are developed in partnership utilising aneeds-based approach to community investment,underpinned by the use of the Public-Private-People-Partnership (4Ps) model.

Fundamentally, we work to help communitiesidentify their priorities through externallydelivered needs assessment programmes and thenwork closely with them to design programmes thatseek to make progress towards meeting these.

In order to maximise the outcomes and impactsthat the business can have, we focus on seven keyareas through our community investment activities,which we outline below. These have been chosenas a response to both local need and directionfrom international development frameworks suchas the UN Millennium Development Goals.

Health, nutrition and sanitation

Our activities include the delivery of medicalinfrastructure such as the seven hospitals thathave been established across various locations.Our hospitals are supported by medical outreachservices, which include mobile health vansand medical outposts to enable isolated ruralcommunities access to medical services.

Cataract Surgery Project - Black MountainMine (South Africa)Resource constraints in the Northern Cape haveresulted in the provincial Department of Healthreporting a signi cant backlog in cataract surgery.Black Mountain Mining (BMM) set out to supportthe Northern Cape Department of Health inaddressing this backlog.

In consultation with the Department of Health itwas agreed to run a rst phase intervention as apilot project and to host this at BMMs AggeneysHealth Centre. Screening took place rst at localclinics and then by the Bureau of the Prevention of Blindness Team in Nababeep after whichpatients were referred for assessment in Aggeneys,

prior to surgery.Fifty eight patients were assessed by theophthalmologist and 47 underwent cataractsurgery in Aggeneys in December 2012. Followingthe success of the pilot programme, plans areunderway to grow the programme in collaborationwith strategic partners so that the objective of zerocataract blindness in the Northern Cape can beachieved in a reasonable time frame.

Our Health, Nutrition and Sanitation activities include thedelivery of medical infrastructure such as the seven hospitals haveestablished across various locations.

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Livelihood Project, HZL

` 78.41 Crore Spent on community activities/projects during FY 2012-13

Mid-day meal programme, BALCO

250,000 StudentsAcross 2,710 schools reached daily through mid-day meal programme, inpartnership with State Governments

EducationOur work with childrens education is targetedat the pre-school level, particularly through ourVedanta Bal Chetna Anganwadi VBCA Project Integrated Child Development Scheme (ICDS).ICDS is a centrally sponsored scheme of theGovernment of India aimed at providing servicesto pre-school children in rural, tribal and slumareas in an integrated manner to ensure theirproper growth and development. In additionto pre-school support, we also support a mid-day meal programme through eight centralisedkitchens aimed at improving the health status ofchildren from Class I to VIII in Government-aidedschools as well as encouraging regular attendanceat school.

*Centralised projects like Midday meal, VBCA, Vedanta Computereducation numbers includes Vedanta Aluminium Ltd. also

Sustainable livelihoodsEducation about yield improvements and moving

production into cash crops has been a particularfocus to assist farmers in maximising their returns.For example, we have assisted farmers in gainingaccess to high-yield seeds and fertilisers, soiltesting, watershed management and cultivation.

As well as working with communities to increasethe nancial value of their production, we haveundertaken education programmes aroundinnovative technology, which o er multiplebene ts.

Women empowermentOur key activity in working to empower womenis through our work with Self Help Groups(SHG). In addition to bringing women togetherin collaborative forums, the group dynamicand collective spirit create informal structuresof support helping to create sustainable smallbusinesses as well as enhancing the bargainingpower of members.

Community asset creationOperating in rural developing communities meansthat these areas often lack basic amenities andinfrastructure. Our engagement in infrastructuredevelopment programmes is crucial to ensuringthat the business is able to operate e ectively

and e ciently, with the dual bene t of improvingthe infrastructure of our surrounding localcommunities. Our initiatives enable the planningand development of infrastructure to improve thelives of communities surrounding our operations.

Community infrastructure built

47 km roads18 community centres36+ wells27 classrooms80 km drainage network

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Women Self Help Group Meeting, Sterlite Copper

720 Self Help GroupsComprising 7,700 members assisted through women empowerment activities

Through the Integrated Village Development Programme, we workwith NGOs and Government authorities, in collaboration with thevillage to develop infrastructure, including health and educationsupport, along with environmental planning and the implementationof sustainable livelihoods programmes.

Bio-investmentRestoring and improving natural systems is central

to our bio-investment programme. They help toimprove the biological balance of the locality andalso reduce rural poverty.

As part of our bio-investment initiatives, theleftover food waste is being converted into organicmanure through organic waste converter plant atMDM kitchens. We were involved in initiatives,such as watershed management, social forestry,cattle breed improvement and cash crop farming.

Integrated village development

Our objective is to facilitate the development oflong-term change that allows bene ts to local ruralcommunities based on their needs and developour relationship with the community throughour Integrated Village Development Programme(IVDP).The core objective for IVDP is to enable the

holistic development of villages surrounding ouroperations.

Under the IVDP, villages are identi ed forassistance by a number of indicators includinglimited infrastructure, low literacy rates, thelevel of government services available and theavailability of healthcare and education services.When a village is identi ed, we work with NGOsand Government authorities, in collaboration withthe village to prepare an integrated developmentplan. The plan usually results in the developmentof infrastructure, including health and educationsupport, along with environmental planning andthe implementation of sustainable livelihoodsprogrammes. From the commencement of theIVDP to handover, the process takes from 3 to 5 years.

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View of our SEL operations

ISO 9001:2008Quality Management Systems in place for continuous quality improvementto comply

PRINCIPLE 9

Providing Customer ValueAt Sterlite Industries, we are committed to createand deliver sustained value to our customersthrough quality products, process innovation, andcontinuous service improvements. We stronglybelieve in engaging with customers to build lastingpartnerships and generate value beyond customer

satisfaction.To be a preferred supplier and partner, we focus onunderstanding changes in customers requirementsand market trends. Marketing teams make use ofvarious tools to help in identifying opportunities inproduct or technology development and exploringavenues of innovation.

Serving the overall well being of the SocietyAll our products are the major resources used inelectrical and construction industries and form thebackbone for infrastructural development of thecountry. Hence, quality is given utmost importance.

Our copper cathodes, aluminium, zinc and leadingots are all internationally known brandsregistered with the LME (London Metal Exchange).

LME standards signify highest product quality,uniform physical characteristics and consistencyof products. Our products meet all necessaryand benchmark national and global regulations,standards and guidelines. This re-emphasises ourcapability and commitment to meet world-classstandards.

ProductDevelopment

QualityEmphasis

Best-in-classServices

TechnicalEngagements

Robust Systemsand Processes

User MarketDevelopment

VALUE TO

CUSTOMERS

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For continuous quality improvement, QualityManagement Systems are in place, which complywith the ISO 9001:2008 standard requirements.

Encouraging freedom of choice and freecompetition In addition to copper cathodes, zinc ingots, leadingots and aluminium ingots, we o er an extensiveline of readily usable product range like copperand aluminium wire rods of various dimensions,

varying sizes of zinc and aluminium ingots towiden the choice of products for our customers.

Commercial provisions o ered are in line withglobal markets to ensure that both quality andvalue of supplies for customers are at par withthat for their global counterparts. At our Copperdivision, to assist customers in hedging againstprice volatility, we provide various pricing optionsincluding forward and spot pricing, available inthe international markets. This ensures globalcompetitiveness of our downstream industry.

Educating customers on products safe andresponsible useFor knowledge on product speci cations, detailsare provided on respective company websites andportals. During supply of material, all individual

units are marked with labels having basic detailsfor ease of tracking and all material suppliesare accompanied by test certi cates and/orspeci cation sheets detailing the contents of eachproduct lot.

Both our technical and marketing teams keepfrequenting customers major operations toensure smooth operations and provide technicalassistance as and when required. We encouragecustomers visit at our plant locations for betterunderstanding of products and associatedprocesses.

Our technical team at copper division are workingon developing Customer Engagement Matrix(CEM) for superior results of engagements withcustomers.

Knowledge sharing and e ectivecommunication owSterlite Industries aspire for proactive interactionswith customers. Various approaches are adopted

to ensure transparent communications andknowledge ow.

Our in-house technical services team as wellas on-board international consultants help uso er technical expertise to our customers and

We promote our products as sustainable, vital, clean, natural,durable and essential metals. We uphold key end applicationssuch as energy efficiency, durability, corrosion protection and theessentiality of metals in everyday life.

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stakeholders. The team also solicit customerfeedback and requirements, works along withthe marketing and R&D teams and assesses thefeasibility of new or customised products.

For greater collaboration, we partner with variouslocal and international industry organizations too.

Through robust systems and tools like ERPsystems, customer complaint tracking and webbased e-sales portals we make it convenientfor customers to engage with us. To encouragetransparency in transactional correspondences,customers are authorised to access all detailsrelated to their transactions.

Promoting responsible use of resourcesWe promote our products as sustainable, vital,

clean, natural, durable and essential metals. Weuphold key end applications such as energye ciency, durability, corrosion protection and theessentiality of metals in everyday life. We promoteusage of re ned copper in electrical applicationsfor safety and energy e ciency. Such activitiesare e ected through our associations with variousorganisations like International Zinc Association,India Lead Zinc Development Association,International Copper Promotion Council (India) andAluminium Association of India.

Feedback for sustained developmentFeedback is a continuous process at Sterlite. Weleverage feedback for continual improvementin product and service quality. This helps usbenchmark ourselves with industry standards andidentify scope and future opportunities to increasecustomer value.

Various approaches are used for feedbackprocess which include frequent meets, onlinefeedback system and customers surveys. A robustcustomer complaint tracking system ensuresquick resolution and undisrupted operations forcustomers.

Vendor Meet, Sterlite Copper

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Directors Report

Dear Shareholders,

The Directors of your Company are pleased to present the 38th Annual Report, with the statement of theaudited accounts for the nancial year ended on March 31, 2013.

FINANCIAL PERFORMANCE SUMMARYThe nancial highlights of your Company as per the IGAAP (Indian Generally Accepted Accounting Principles)are summarised below:

` in CroreParticulars Standalone Consolidated

Year endedMarch 31, 2013




Net Sales / Income fromOperations

18,910.29 18,084.62 44,921.89 40,966.77

Pro t from operations beforeother income, nance costs andexceptional items

552.80 780.94 8,437.10 8,033.51

Other Income 2,093.62 2,247.68 3,470.08 3,163.21

Finance costs 615.39 597.46 922.24 852.42Exceptional items 100.00 423.32 117.53 472.64Pro t from Ordinary Activitiesbefore tax

1,931.03 2,007.84 10,867.41 9,871.66

Tax expense 353.76 350.36 1,618.39 2,110.55Net Pro t from Ordinaryactivities after tax

1,577.27 1,657.48 9,249.02 7,761.11

Paid up equity share capital(Face value of ` 1 each)

336.12 336.12 336.12 336.12

Reserves excluding revaluationreserves as per balance sheet

25,227.25 24,401.26 50,619.05 45,719.56

Earnings per share ( ` ) 18.03 14.36Transferred to General Reserve 200.00 400.00 - -Interim Dividend 773.07 336.13 - -Transferred to DebentureRedemption Reserve

41.08 1.50 - -

Proposed dividend onEquity shares (incl. Dividenddistribution tax)

- 350.15 - -

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PERFORMANCE REVIEWStandaloneDuring the year under review, your Companyincreased production, reduced Treatment Chargesand Re ning Charges (TC/RCs) and sulphuric acidrealisation along with improved copper recoveryand higher premium. However, these gains werepartially o set by higher costs of production.

Your Company reported net revenue fromoperations of ` 18,910 Crore, an increase of 5%compared to 2011-12. The increase was primarilyon account of an increase in copper sales from3,20,518 tonnes to 3,50,471 tonnes.

TC/RC realisation during the year was 12.76 cents/lb, as compared to 14.56 cents/lb in the previousyear due to low spot TC/RC in rst half of nancialyear. Additionally, force majeure declared byFreeport and mining disruptions at Collahuasi,which are major sources for copper concentratesupplies, a ected realisation on copper.

The earnings before interest, tax depreciationand amortisation (EBITDA) for the same perioddecreased 12% from ` 3,191 Crore to ` 2,809Crore. Similarly, Net Pro t decreased 5% from` 1,657 Crore to ` 1,577 Crore. Production ofcathodes at our Copper Smelter was 3,53,154tonnes, up 8.4% on a year-on-year (y-o-y) basis.Copper rods volume also increased to 1,71,855tonnes compared to 1,61,421 tonnes in theprevious year. We also produced 10,60,519 tonnessulphuric acid and 1,19,793 tonnes phosphoricacid during the year.

Your Company maintained its leadership positionin domestic copper with record sales of 1,96,626

MT. We also exported 1,53,844 MT of coppercathode, which is higher, as compared to last year.

Due to high stock and lower demand of Phosphoric

Acid, our sales volume remained muted at1,19,171.15 tonnes compared to 1,51,726 tonnesin the previous year.

ProjectsYour Companys rst 80 MW unit of the captivepower plant at Tuticorin was commissioned duringthe year and is currently operating at almost fullcapacity.

Your Companys Expansion Project at Tuticorin byputting up an additional 4 Lakh Tonnes Per Annum(LTPA) Copper Smelter could not progress asplanned due to pending regulatory clearances. TheCompany has obtained the Environment Clearancefrom the Ministry of Environment & Forest (MoEF)in 2009. However, the Consent to Establish fromthe Tamil Nadu Pollution Control Board (TNPCB)is awaited. A Writ Petition was led in 2009 inMadras High Court challenging the environmentclearance.

Transfer to General ReservesOut of the total pro t of ` 1,577 Crore for the

nancial year, an amount of ` 200 Crore is

proposed to be transferred to the General Reserve.The above transfer to general reserves is incompliance to the Companies (Transfer of Pro ts toReserves) Rules, 1975.

ConsolidatedOn a consolidated basis, your Company once againdelivered robust nancial results, largely driven bystrong operational performance from a portfolio ofworld-class, low cost, long-life assets against thebackdrop of a challenging economic environment.

Your Companys nancial performance re ectsvolume growth across most businesses. We hadrecord mined zinc and lead metal productionduring the year and registered increases in leadand silver volumes in Zinc India. Aluminiumsmelters operated above rated capacity and Powersales volumes also improved signi cantly althoughwe were impacted by evacuation constraints.Copper cathode production at Sterlite Copper alsoincreased substantially.

The global economic concerns and uncertaintiesdrove down prices of all key commodities. Inthe commercial power sector, sale prices alsoweakened, although the impact of this was partlymitigated by the lower costs of power generationat Sterlite Energy.

Our net revenue increased 10% to ` 44,922Crore. During the year we achieved an EBITDA of

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` 10,574 Crore due to the ` 6,060 Crore pro tearned which was 26% higher compared to the

previous year.

MANAGEMENT DISCUSSION AND ANALYSISA detailed report on the Management Discussionand Analysis is provided as a separate section inthe annual report.

DIVIDENDThe Board of Directors of your Company at itsmeeting held on October 23, 2012 approvedthe payment of an Interim Dividend ` 1.10/- per

share (i.e. 110%) on 336,12,07,534 equity sharesof ` 1/- each. The Record Date determined forpayment of dividend was October 30, 2012 andthe dividend was paid on November 01, 2012.The Board of Directors at its meeting held on April29, 2013 also recommended a payment of anInterim Dividend ` 1.20/- per share (i.e. 120%)on 336,12,07,534 equity shares of ` 1/- each. TheRecord Date determined for payment of dividendwas May 10, 2013 and the dividend was paid onMay 14, 2013. The Total Dividend for 2012-13was ` 2.30 per share (i.e. 230%).

UPDATE ON ENVIRONMENTAL LITIGATIONYour Company led a Special Leave Petition (SLP)in the Supreme Court of India challenging theMadras High Court order dated September 28,2010, vide which the Tuticorin Copper SmelterUnit was ordered to be permanently closed. OnApril 2, 2013, the Honourable Supreme Courtupheld our appeal led in 2010 against theMadras High Court order for smelter closure andordered us to deposit ` 1 billion (approx. $ 18million) with the District Collector, Tuticorin, which

will be used to improve the environment, includingsoil and water, in the vicinity of the plant.

CLOSURE BY TNPCBTamil Nadu Pollution Control Board (TNPCB)ordered the closure of the smelter on March29, 2013 following a few public complaints ofemissions. We led an appeal with the NationalGreen Tribunal (NGT) against the same. NGT,Chennai, in turn, transferred the matter to NGTPrincipal Bench at New Delhi. Your Company iscon dent of restarting the Tuticorin Unit and will

continue to work closely with the RegulatoryAuthorities for continuous improvement inenvironmental parameters. Your CompanysTuticorin Unit has the best in class environmentfriendly technology. Your Company has recently

invested more than ` 150 Crore on environmentimprovements projects as per the directions of

Supreme Court and TNPCB.

CREDIT RATINGCRISIL Research certi es its ratings of yourCompany for the nancial year. The treasuryportfolio of xed income investments has beenconsistently evaluated as Very Good (highestsafety from credit default on CRISILs 4 pointscale).

SCHEME OF MERGER

Scheme of Arrangement between theCompany with Sesa Goa LimitedThe proposed transaction has received theapproval of the High Court of Bombay at Goa onApril 3, 2013. The hearings at the High Court ofMadras have been completed and the order isawaited. Following the receipt of Court Approvals,a record date will be announced to complete thetransaction.

An appeal was led against the Goa Bench orderbefore the Division Bench. The appeal has beenheard and the orders are reserved. Your Companyis hopeful of completing the entire process in thecurrent scal.

The merger of your Company along with othersubsidiaries/ associate company with Sesa GoaLimited, proposed to be named as Sesa SterliteLimited will create seventh largest resourcesCompany in the world.

CORPORATE GOVERNANCE, CORPORATESOCIAL RESPONSIBILITY & BUSINESSRESPONSIBILITY REPORTS

Your Company is committed to maintain thehighest standards of Corporate Governance.A separate report on Corporate Governance,pursuant to Clause 49 of the Listing Agreementwith the stock exchange(s), Auditors Certi cateon its compliance, and shareholders information,forms a part of this annual report.

SustainabilityDuring the year, your Company incorporatedthe system of Vedanta sustainability frameworkinto its existing integrated management system

to enable e cient operations. We launched ane-Learning module, developed on the VedantaSustainability Framework, to instill awareness onthe sustainability framework in our employees andits implementation aspects.

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EnvironmentYour Company continues to be fully committed to environment and follows the best environmentmanagement practices in terms of best technology,processes, use of energy, water conservation,controlled emission and hazardous wastemanagement. The Company has recently spentmore than ` 150 Crores in Tuticorin CopperSmelter to further improve the environmentalperformance.

Corporate Social Responsibility (CSR) andCommunity DevelopmentYour Companys CSR initiatives are aligned

with the goals of United Nations MillenniumDevelopment Goals and the principles of theGlobal Compact. True to our conviction that socialresponsibility begins at home, we pay maximumattention to the communities and villagessurrounding our facilities. Currently, most of ouractivities are concentrated at around 72 villagesin the rural and coastal areas of Tuticorin, TamilNadu, and which impact the lives of about 1.5 lakhpeople.

Our initiatives in education stem from theconviction that it is the responsibility of privatecompanies to join hands with government andother institutions to contribute in improving thequality of education of girls in rural areas. Projectssuch as Ilam Mottukal or Nanhi Kali are beingimplemented in 72 Government Primary schoolscovering 5,035 girls.

Our commitment to the communities aroundus naturally extends to healthcare, which is anintegral component of development. Several RuralHealth Clinics are run in six villages. Your Companyhas improved the infrastructure in GovernmentHospitals by sponsoring bed materials.

Our CSR policy advocates women empowermentand helps improving their economic and socialstatus through de nite social and economicpolicies. These in turn leads to greater con denceand ultimately, development. With this in mind, theSterlite Women Empowerment Project (SWEP) wasinitiated to empower rural and coastal women bypartnering with four local NGO partners.

SIIL is implementing a coastal livelihood projectwith the objective of providing alternateemployment opportunities for coastal youths.

Around 160 youths were trained in eight identi edtrades and achieved 88% employability rate.

A major initiative undertaken by Sterlite wasthe development of a Model Village, based on

the concept of a Child Friendly village. A totalsanitation project was implemented in two model

villages and household toilets are provided to allfamilies in the village.

Around 76% of our employees participated invarious CSR activities during the reporting year.

We incurred ` 78 Crore on CSR activities duringthe year.

A detailed sustainability report of your Company isgiven in a separate section in this annual report.

Business Responsibility ReportSEBI vide its circular CIR/CFD/DIL/8/2012

dated August 13, 2012 and Clause 55 of theListing Agreement, mandated that top 100 listedcompanies based on market capitalisation at BSEand NSE, to include Business Responsibility Report(BRR) as part of the annual report. The BRR shallportray the initiatives taken by the Company ongovernance, social, environmental and economicresponsibilities of business. The initiatives takenby the Company on environmental, social andgovernance aspects is mentioned in the BRR whichforms part of this annual report.

SUBSIDIARY COMPANIESAs on March 31, 2013, the Company had 31subsidiaries including indirect subsidiaries.

The Ministry of Corporate A airs, vide its circularno.2/2011 dated February 8, 2011, had grantedexemption to holding companies from attachingthe nancial statements of its subsidiaries to theCompanys annual report. In accordance with thesaid circular, the Balance Sheet, the Pro t & LossAccount and other documents of the subsidiarycompanies are not being attached with the BalanceSheet of the Company. The Company will makeavailable the annual accounts of the subsidiarycompanies to any member of the company whomay be interested in obtaining the same. TheAnnual Accounts of the subsidiaries companies willalso be kept for inspection by any shareholdersat the registered o ce of the holding companyand of the subsidiary companies concerned at therespective companies registered o ces. Further,the Annual Accounts of the subsidiaries are alsoavailable on the website of the Company www.sterlite-industries.com

The shareholders may refer to the statementunder Section 212 of the Companies Act, 1956and information on the nancial statements ofsubsidiaries appended to the above Statementunder Section 212 of the Companies Act, 1956 in

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this annual report for further information on thesesubsidiaries.

Members may write to the Company Secretary atSterlite Industries (India) Limited, SIPCOT IndustrialComplex, Madurai By-pass Road, TV Puram P.O, Tuticorin 628 002, to obtain a copy of the

nancial statements of the subsidiary companies.

DIRECTORSMr. Sandeep Junnarkar and Mr. Gautam Doshiretire by rotation at the ensuing Annual GeneralMeeting and being eligible, o er themselves forre-appointment. The brief pro les of Mr. Sandeep

Junnarkar and Mr. Gautam Doshi are given in thechapter on Corporate Governance.

INFORMATION PURSUANT TO SECTION 217OF THE COMPANIES ACT, 1956A. Conservation of Energy, Research &

Developments, Technology Absorption,Foreign Exchange Earnings and Outgo

The particulars as prescribed under Section 217(1)(e) of the Companies Act, 1956, read with theCompanies (Disclosure of Particulars in the Reportof the Board of Directors) Rules, 1988 are set outas an annexure to the Directors Report.

B. Particulars of EmployeesPursuant to the provisions of Section 217(2A)of the Companies Act, 1956 read with theCompanies (Particulars of Employees) Rules,1975 as amended, the names and otherparticulars of employees are set out as anannexure to the Directors Report. However,as per provisions of Section 219(1)(b)(iv) ofthe Companies Act, 1956, the report and theaccounts are being sent to all the shareholders

excluding the aforesaid information. Anyshareholder desirous of obtaining suchparticulars may write to the Company Secretaryat the registered o ce of the Company.

C. Directors Responsibility StatementAs required under Section 217(2AA) of theCompanies Act, 1956, with respect to DirectorsResponsibility Statement it is hereby con rmedthat:

a) In the preparation of the Annual Accountsfor the year ended March 31, 2013, theapplicable accounting standards havebeen followed and there is no materialdepartures from the same;

b) The Directors have selected suchaccounting policies have been selected and

they have consistently applied them andmade judgments and estimates that are

reasonable and prudent so as to give a trueand fair view of the state of a airs of theCompany as at March 31, 2013 and of thepro t of the Company for the year endedon that date;

c) The Directors con rm have taken properand su cient care for maintenance ofadequate accounting records have beentaken in accordance with the provisions ofthis Act, for safeguarding the assets of theCompany, and for preventing and detectingfraud and other irregularities;

d) The Directors have prepared the annualaccounts of the Company on a goingconcern basis.

AUDITORS & AUDITORS REPORTThe statutory auditors of the Company, M/s. Chaturvedi & Shah, Chartered Accountantsand M/s. Deloitte Haskins & Sells, CharteredAccountants, hold o ce until the conclusion of the ensuing Annual General Meeting. M/s. Chaturvedi & Shah and M/s. Deloitte Haskins

& Sells, Chartered Accountants have con rmedtheir eligibility and willingness to accept o ce ofAuditors. The Audit Committee and the Board ofDirectors therefore recommend M/s. Chaturvedi &Shah and M/s. Deloitte Haskins & Sells, CharteredAccountants as Statutory Auditors of the Companyfor 2013-14 for the approval of shareholders.

The Notes on Financial Statements referred to inthe Auditors Reports are self-explanatory and donot call for any comments and explanation.

COST AUDITORSAs per the requirement of the CentralGovernment and in pursuance of Section 233Bof the Companies Act, 1956, your Directors haveappointed M/s Ramnath Iyer & Company, CostAccountants as cost auditors of the Company tocarry out the audit of cost accounting records for2012-13. The cost audit report will be led theCentral Government as per the timelines.

ADEQUACY OF INTERNAL CONTROLSThe Company, as part of Vedanta Group, has

a strong internal control system in place. Theinternal control system of the Company issupported by the Management AssurancesServices (MAS) function. Your Company has adocumented Standard Operating System (SOPs)for procurement, project / expansion management,

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capex, human resources, sales and marketing,nance, treasury, compliance, Safety, Health and

Environment (SHE) and manufacturing.An annual audit plan is drawn in consultationwith the MAS team as approved by the AuditCommittee. The internal controls system andmechanism is reviewed periodically to makeit robust, so as to meet the challenges of thebusiness. The Company has a system of carryingout internal audit, covering monthly physicalveri cation of inventory, monthly review ofaccounts and a quarterly review of all businessprocesses. To enhance internal controls,the internal audit follows stringent grading

mechanism, focusing on the implementation of allrecommendations of internal auditors. The internalauditors make periodical presentations to theAudit Committee, who review the same and ensurestrict compliance.

Our risk management framework acts as ane ective tool in mitigating the various risks whichour business are exposed in the course of theiroperations as well as in their strategic action.The risk management framework Turnbull RiskMatrix is designed to help the organisation meetits objectives through alignment of the operating

controls to the mission and vision of the Company.The Company also has a well-documented internalcontrols systems and disclosure control requiredfor compliance to the Sarbanes Oxley Act of 2002.

DEPOSITORY SYSTEM AND LISTING OFSHARESDetails of the depository system and listingof shares are given in the section AdditionalShareholder Information, which forms a part ofthe Corporate Governance Report and is attachedwith the Annual Accounts.

REGISTRAR AND SHARE TRANSFER AGENTM/s. Karvy Computershare Private Limited,Hyderabad, is the Registrar and Share TransferAgent of the Company. Details of the depositorysystem and listing of shares are given in thesection Additional Shareholder Information,which forms a part of the Corporate GovernanceReport and is attached with the Annual Accounts.

FIXED DEPOSITS

Your Company has not accepted / invited any xeddeposits from the public under section 58A of theCompanies Act, 1956.

HUMAN RESOURCESSPEED SMART HUMBLE, the DNA of Sterliteis the core principle of every HR process, fromrecruitment to performance management.Recruitment which is the beginning of the HR cycleinducts talent into the organisation with a specialfocus on Women Empowerment and Geomix. TheLearning and Development wing is responsible forgrooming talent recruited and shaping them intofuture leaders. This is ensured through continuousinternal and external training sessions bridgingthe gaps in technical and behavioral skill sets.Retention of employees, as the key measure to thee ectiveness of HR functions, is ensured through

a plethora of rewards and recognition schemesand employee engagement initiatives includingthe agship Employee Connect programme. YourCompanys HR practices won several awards apartfrom being branded the 4th Best Employer 2012-13 by World HRD Congress.

ACKNOWLEDGEMENTSYour Company maintained healthy, cordial andharmonious industrial relations at all levels. Theenthusiasm and unstinting e orts of the employeehave enabled your Company to remain at the

forefront of the industry. The Directors place onrecord, their sincere appreciation for signi cantcontributions made by the employees throughtheir dedication, hard work and commitmenttowards the success and growth of the Company.

The Directors also acknowledge the support andassistance extended to us by the Government ofIndia, various state governments, and governmentdepartments, nancial institutions, bankers,shareholders and investors at large, and lookforward to having the same support in ourendeavours.

For and on behalf of the Board of Directors,

Anil Agarwal Chairman

Place: Mumbai Dated: April 29, 2013

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Annexure-ASTATEMENT CONTAINING PARTICULARS REQUIRED UNDER THE COMPANIES (DISCLOSURE OFPARTICULARS IN THE REPORT OF THE BOARD OF DIRECTORS) RULES, 1988 AND FORMING PAROF THE DIRECTORS REPORT FOR THE YEAR THAT ENDED 31 MARCH 2013.

(A) Conservation of energy:a) Conservation of natural resources continues to be the key focus area of your Company. Some

of the important steps taken in this direction follow.i. Elimination of furnace oil consumption in super heater and Phosphoric acid plant by

modifying steam turbine generator resulting in savings of ` 47.5 Crore per annum

ii. Use of blowers in place of compressed air in ETP

iii. Conversion of HT to LT motors in slag granulation

iv. Replacement of FO with compressed air in ISA furnace - resulting in savings of ` 1.5 Crore perannum

b) Additional investments and proposals, if any, being implemented for reduction ofconsumption of energyi. C.E improvement from 97% to 97.5% and liberator e ciency improvement from 70% to

77% in Tuticorin Re nery

ii. Bus bar bolt tightening in Tuticorin Re nery

c) Impact of above measures in a) and b) for reduction of energy consumption and consequentimpact of cost of production of goods.The e orts taken to conserve energy will not only bring down the cost of production signi cantly,but will also help us to preserve environment by reducing GHG emissions.

d) Total energy consumption and energy consumption per unit of production. As per form A attached.

FORM A(B) Technology Absorption

E orts made in technology absorption as per Form B annexed.

(C) Foreign Exchange Earnings and Outgoa) Activities relating to export, initiatives taken to increase export, development of new export

markets for products and services, and export plan:

The export volume for 2012-13 was 153,844 MT, a 30.18% increase from the previous year.b) Total Foreign Exchange used and earned:

` in CroreS.No. Particulars 2013 20121) Foreign Exchange Earnings 9,112.87 8,530.312) Foreign Exchange Outgo

CIF Value of imports of Raw Material,Components & Spare parts

16,322.27 14,480.49

Capital Goods 55.24 2.79Others 372.66 725.37

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Form ADISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

Particulars Unit Year EndedMarch 31, 2013Year Ended

March 31, 2012A. Power and Fuel Consumption

ElectricityPurchase Unit MWH 411,770 4,79,702Rate / Unit ` 6.28 4.71Own generation Unit* MWH 48512 77,581Cost / Unit ` 9.76 7.09Furnace Oil**Quantity KL 27,267 28,116Total Amount ` in Crore 104 103Average Cost per litre ` 38.10 36.50DieselQuantity KL 216 240Total Amount ` in Crore 0.93 1.05Average Cost per litre ` 42.99 43.96L.P.G./LNG/PROPANE/IPAQuantity MT 6,114 4195Total Amount ` in Crore 39.72 20.90

Average Cost per litre ` 64.97 49.82NATURAL BRIQUTTEQuantity MT 0 0Total amount ` in Crore 0 0Average cost per MT ` 0 0

B Consumption per MT of CathodeElectricity MWH 1.30 1.71Furnace Oil KL 0.08 0.09Diesel KL 0.00 0.

sterlite-2013

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