HZL Smaller Version Final

Hindustan Zinc Limited
42ND ANNUAL REPORT 2007-08
Hindustan Zinc, a saga of
HINDUSTAN ZINC LIMITED ANNUAL REPORT 2007-08

exemplary growth with an
outstanding performance on
sustainable development, is
the World’s second largest
integrated zinc producer
ENDURING with a mining and metals
VALUE capacity of 754,000 tonnes
per annum.
THROUGH
VALUES
HINDUSTAN ZINC LIMITED

Yashad Bhawan
Udaipur – 313 004
Rajasthan
www.hzlindia.com
T: +91 294-2420813-15
Overview
01 Highlights
02 Hindustan Zinc at a glance
04 Our growth history
06 Chairman ’s Statement
08 Enduring Value Through Values
Business review
10 Key Performance Indicators
12 Zinc – Demand and Markets
14 Lead – Demand and Markets
18 Exploration
20 Operational Performance
20 Mining
24 Smelting
26 Projects
28 Human Resources and
Information Technology
30 Financial Performance
sustainability
34 Sustainable Development
Governance
46 Board of Directors
48 corporate information
49 Directors’ Report
53 Annexure 1
54 Form ‘A’
55 Certificate of Compliance with
the Code of Conduct Policy
56 Corporate Governance Report
65 Additional Shareholder Information
69 Certification by Chief Executive Officer
and Chief Financial Officer of
the Company
70 Auditors’ Certificate
71 Auditors’ Report
72 Annexure to the Auditors’ Report
Financials
74 Balance Sheet
75 Profit and Loss Account
76 Cash Flow Statement
77 Schedule Annexed to and forming
part of the Accounts
110 Balance Sheet Abstract and Company’s
General Business Profile
111 Financial Highlights
overview
highlights
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Another year of excellent performance for Hindustan Zinc

– Revenues of Rs 7,878 crores driven by higher volumes
in both Zinc and Lead.
– PBDIT of Rs 6,231 crores driven by excellent
cost performance
– EPS of Rs 104.04 per share
– Stable operating costs despite industry-wide pressures
– Continues to deliver projects ahead of schedule and
within budget in a challenging industry environment
– Strong balance sheet with shareholders fund base
of Rs 11,848 crores
– ROCE of 50.7%
– Total dividend recommended at Rs 5.00 per share
Growth projects
– Rs 3,600 crores of near term growth projects under
implementation
– Actions on ground to cross 1 million tonnes of metal
production capacity

ANNUAL REPORT 2007-08 01
HINDUSTAN ZINC AT A GLANCE
MINING OPERATIONS
1. RAMPURA AGUCHA MINE 2. SINDESAR KHURD MINE

Ore Produced in FY 2008: 4,068,215 tonnes Ore Produced in FY 2008: 295,200 tonnes
Type of Mine: Open Cast Type of Mine: Underground
Reserves: 63.56 million tonnes Reserves: 1.96 million tonnes
Resources: 43.77 million tonnes Resources: 35.31 million tonnes
Average Reserves Grade: Zinc – 12.97% Average Reserves Grade: Zinc – 5.32%
Lead – 1.94% Lead – 2.08%
Ore Production Capacity: 5.00 million tonnes per annum Ore Production Capacity: 0.30 million tonnes per annum
3. rajpura dariba MINE 4. Zawar MINEs
Ore Produced in FY 2008: 518,049 tonnes Ore Produced in FY 2008: 901,635 tonnes
Type of Mine: Underground Type of Mine: Underground
Reserves: 7.07 million tonnes Reserves: 7.18 million tonnes
Resources: 17.60 million tonnes Resources: 41.91 million tonnes
Average Reserves Grade: Zinc – 6.23% Average Reserves Grade: Zinc – 3.88%
Lead – 1.51% Lead – 2.09%
Ore Production Capacity: 0.6 million tonnes per annum Ore Production Capacity: 1.2 million tonnes per annum
smelting OPERATIONS POWER OPERATIONS
5. chanderiya smelter complex 5. chanderiya smelter complex

Production FY 2008: 293,541 tonnes of Zinc Type: Coal based captive power plant
58,247 tonnes of Lead Capacity: 234 MW
Capacity: 525,000 tonnes of Zinc
85,000 tonnes of Lead 8. Samana wind power project
Type: Wind energy farms
6. debari zinc smelter Capacity: 88.8 MW
Production FY 2008: 78,511 tonnes of Zinc
9. gadag wind power project
Capacity: 88,000 tonnes Zinc
Type: Wind energy farms
7. VIZAG zinc smelter Capacity: 18.4 MW
Production FY 2008: 54,271 tonnes of Zinc
Capacity: 56,000 tonnes of Zinc
1. Rampura Agucha Mine
2. Sindesar Khurd Mine
3. Rajpura Dariba Mine
4. Zawar Mine
5. Chanderiya Smelter Complex
6. Debari Zinc Smelter
7. Vizag Zinc Smelter
8. Samana Wind Power Project
9. Gadag Wind Power Project
Smelting operations
 Power plants
02 HINDUSTAN ZINC LIMITED

ANNUAL REPORT 2007-08
overview
Vision
Be a world-class zinc company, creating value, leveraging

mineral resources and related core competencies.
Mission
– B e a lowest cost zinc producer on a global scale,

maintaining market leadership
– One million tonne zinc-lead metal capacity by 2010
– Be innovative, customer oriented and eco-friendly,
maximising stake-holder value
6 4
5  3
RAJASTHAN
GUJARAT
8 
9  ANDHRA PRADESH
KARNATAKA
Note: map not to scale

our growth history
Driven by the capability of 6,359 employees,

Hindustan Zinc Limited is the world’s second
largest integrated zinc producer.
1966 2004
– Hindustan Zinc Limited was – 35,000 tonnes of zinc
incorporated from erstwhile debottlenecking completed at
Metal Corporation of India on Chanderiya Smelter Complex
10 January 1966
2005
1991 – Commissioned 170,000 tonnes
– Chanderiya Pyo-metallurgical per annum of Hydrometallurgical
Lead Zinc Smelter and Rampura Zinc Smelter (Hydro I) at
Agucha Mine began production Chanderiya Smelter Complex
– Commissioned 2x77 MW Captive
2002 Power Plant at Chanderiya
– Acquired by Sterlite Industries Smelter Complex
(India) Limited on 11 April 2002 – Rampura Agucha Mine expansion
from 2.30 million tonnes per
2003 annum to 3.75 million tonnes
– 32,000 tonnes of zinc per annum
debottlenecking completed at
Debari Zinc Smelter and Vizag 2006
Zinc Smelter
– Commissioned 50,000 tonnes per
– Debottlenecking of Rampura annum of Ausmelt Lead Smelter
Agucha Mine from 1.37 million at Chanderiya Smelter Complex
tonnes per annum to 2.30 million
tonnes per annum – Sindesar Khurd Mine began
production with an initial capacity
of 0.3 million tonnes per annum
unrivalled growth
overview
2007
– Commissioned 170,000 tonnes
per annum of Hydrometallurgical
Zinc Smelter (Hydro II) in a
benchmark time of 20 months
at Chanderiya Smelter Complex
– Commissioned 38.4 MW of Wind
Energy Farms at Gujarat
2008
– 88,000 tonnes per annum zinc
debottlenecking completed at
Chanderiya Smelter Complex
and Debari Zinc Smelter
– Rampura Agucha Mine
expansion from 3.75 million
tonnes per annum to 5.00 million
tonnes per annum
– Commissioned additional 68.8
MW Wind Energy Farms making
the Company’s total Wind Energy
capacity to 107.2 MW as on
31 March 2008

chairman’s statement
2008 was another excellent year for Hindustan

Zinc. A significant increase in volumes combined
with productivity gains and stable operating
costs delivered industry-leading growth and
returns for our shareholders.
2008 Highlights rupee vis-à-vis the US dollar. Profit tonnes containing 27.5 million tonnes
2008 was another excellent year for After Taxes of Rs. 4,396 crores was of zinc-lead metal.
Hindustan Zinc. A significant increase marginally lower than Rs. 4,442 crores
in volumes combined with productivity recorded in FY 2007 due to the During the year, we successfully
gains and stable operating costs aforementioned reasons. achieved LME registration of zinc
delivered industry-leading growth metal from the Chanderiya Hydro I
and returns for our shareholders. 2008 Achievements smelter and the lead metal from our
We commissioned our new 170,000 Chanderiya Lead Smelter. The LME
Our portfolio of existing assets and tonne Chanderiya Hydro II zinc smelter registration is recognised worldwide
completed expansion projects continue at Chanderiya during the year, within as one of the most demanding
to yield superior performance and we a record time of 20 months and three standards and signifies highest
continue to make investments that months ahead of schedule. This product quality, uniform physical
drive sustainable long-term growth. smelter was also ramped up within characteristics and consistency of
We are emerging as an exceptional one quarter of its commissioning. metal production. This underpins the
mining company with world class We added 80 MW of Captive Power at capability and commitment of HZL to
resources. We continue to offer a Chanderiya in FY 2008. Subsequent meet best quality standards.
unique investment story by delivering to the year end, we also successfully
our expansion projects ahead of completed our 88,000 tonne zinc Growth projects
schedule in a challenging environment. debottlenecking project at Chanderiya We also recently announced expansion
and Debari. With this, our total zinc- projects that will increase our total
During the year metal in concentrate lead capacity is now 754,000 tonnes integrated zinc-lead capacity to
production was 629,019 tonnes, an making us the second largest 1,065,000 tonnes per annum, making
increase of 10% over prior year integrated zinc producer in the world. us the world’s largest integrated zinc-
production of 572,319 tonnes. Our lead producer. This expansion is also
FY 2008 finished zinc metal production A total of 68.8 MW of wind power expected to gradually increase our
grew to 426,323 tonnes, with lead capacity was commissioned during the silver production from the current
production at 58,247 tonnes, an year, taking our total installed green levels of 2.8 million ounce per annum
increase of 22.4% and 30.7%, wind energy capacity to 107.2 MW. to 16.1 million ounce per annum.
respectively over FY 2007. The increase
in zinc and lead metal production was Our exploration philosophy has been Dividend
primarily due to the output from our to replace every tonne of ore mined The Company paid an interim dividend
new Chanderiya Hydro II zinc smelter with at least one tonne of resource. of Rs.2.5 per share. To maintain
and increased output from our existing I am pleased to report that our ongoing consistency and continuity and keeping
zinc and lead smelters. exploration activities have yielded in view future fund requirements for
significant success with an increase expansion, your Board of Directors
I am delighted to report that we of 28.7 million tonnes to reserves and have recommended a final dividend of
achieved net sales of Rs. 7,878 crore resources, prior to a depletion of 5.8 Rs.2.5 per share, resulting in a total
in 2008 with accompanying PBDIT of million tonnes in FY 2008. Contained dividend of Rs.5.0 per share for the year
Rs. 6,231 crore. Despite higher metal zinc-lead metal has increased by 4.0 under review.
production and operating efficiencies, million tonnes, prior to a depletion of
net sales were lower compared to the 0.6 million tonnes during the same People
previous year on account of lower LME period. Total reserves and resources Driving our achievements and success
prices and an appreciation of the Indian at 31 March 2008 were 232.3 million is our dedicated and talented workforce

overview
of 6,359 people. I would like to thank villages situated around our operations Outlook
each one of them for their superior have been declared as Model villages Global demand for metals continues
efforts this year. We remain committed as per the social audit conducted by to be strong and we are well placed
to continue to provide a challenging Operations Research Group (ORG). to serve this growing demand. The
and rewarding work environment for industry faces challenges in terms of
all our employees, and building a high The tripartite partnership between the cost pressures and the ability to bring
performance organisation where State Government of Rajasthan, Naandi new capacities to production on time
careers are nurtured, capabilities are Foundation and Hindustan Zinc to and within budget. We believe that we
valued, leaders are developed from provide nutritious meals daily to nearly have an unrivalled track record in this
within and performance is rewarded. 200,000 children in Chittorgarh, challenging environment in our ability
Udaipur and Bhilwara districts of to deliver projects at global benchmark
Sustainable Development Rajasthan is delivering splendidly. The costs and aggressive timelines.
We see sustainable development as results are encouraging as this social
central to the way that we conduct investment is one of the main factors We will continue to build upon our 2008
our business and recognise that our contributing to widening primary achievements responsibly and I eagerly
obligations to society include ensuring education and we intend to replicate look forward to reporting on our
that we manage our health, safety, this success story in the Rajsamand progress on various initiatives in 2009.
environmental and social impacts, district of Rajasthan.
risks and opportunities effectively. AGNIVESH AGARWAL
I am pleased with our achievements Chairman
I am pleased to report that our safety in sustainable development in the year
record measured in terms of Lost Time under review. Going forward, we aim
Injury Frequency Rate (LTIFR) reduced to be an industry-leading company in
44% from 5.46 in FY 2007 to 3.07 in this area and to work closely with all
FY 2008. of our stakeholders.
During the year we undertook the Bal Awards and Recognition

Chetna Anganwadi Project covering I am happy that our efforts are
over 16,000 children in 400 anganwadi acknowledged by external agencies.
centres spread across four districts During the year we won over 20 awards
of Rajasthan. A Public-Private- in the areas of operational excellence,
Partnership model has been created governance, and health and safety,
for the holistic development of under notable among them being the Dun
privileged children in the age group & Bradstreet American Express
of three to six years, by providing them Corporate Award 2007 for being the
supplementary nutrition, health care, Best Company in the Non-Ferrous
and joyful learning services. Metals Sector, the Golden Peacock
Award for Excellence in Corporate
Our ‘Model Village’ development Governance 2007 and the Golden
initiative addresses the sustainable Peacock Award for Corporate Social
and inclusive growth of the Responsibility 2007.
communities where we operate 32

ENDURING VALUE THROUGH
OUR Values
ENTREPRENEURSHIP
We foster an entrepreneurial spirit in our business and value the ability to
foresee opportunities early in the cycle and act on them swiftly. Whether
it is developing growth projects or it is debottlenecking the existing assets
we ensure an entrepreneurial spirit in the heart of our employees.
GROWTH
We continue to deliver industry-leading growth and generate significant
value for our shareholders. Our growth is unique and we are confident that
we will continue to deliver significant growth for shareholders in the future.
We are not the only beneficiary of our growth. We see growth as a means
to enhance the wealth and prosperity of the society at large.
excellence
Achieving excellence in all that we do is our way of life. We consistently
deliver projects ahead of schedule at industry-leading costs of
construction and within budget. We are one of the lowest cost zinc
producers and our ongoing initiatives should help us to further sharpen
our cost performance. Equally important to us is achieving excellence
in health, safety and environment performance.
TRUST
We value and cherish the trust reposed in us by our stakeholders. We
recognize that we must responsibly deliver on the promises we make to
earn that trust. We constantly strive to meet stakeholder expectations and
try to deliver ahead of expectations. We always behave in a manner that
is consistent and upholds our value system. Our desire and ability to act
in a competent manner would help us to further build upon the trust of
our stakeholders.
SUSTAINABILITY
We pursue sustainability within the framework of well defined governance
structures and policies and with the demonstrated commitment of our
management and employees. Our sustainability team comprises of over 280
full time resources including field workers. With the use of appropriate
technology and best in class practices, we always endeavour to minimize the
damage to the environment, and we do not miss any opportunity to leave a
positive mark. Our growth and business policy hinges around the philosophy
of inclusive growth with a clear focus on neighborhood communities.

overview
GH VALUES
— 88,000 tonnes zinc capacity debottlenecking in Chanderiya and Debari, and new
roaster commissioned in April 2008
— Metal Recovery initiatives through innovative ideas of our people
— Thousands of improvement projects voluntarily undertaken by our employees
including research on beneficial use of solid wastes
— 34% CAGR in revenue (five years)

— 61% CAGR in profits (five years)
— Rs 4,210 crores gross assets addition in last five years (including CWIP)
— Rs 3,600 crores expansion projects under implementation
— Asian Power Plant of the Year Award (2007) by Asian Power, Singapore
— 170,000 tpa Chanderiya Hydro II zinc smelter commissioned in a benchmark time
of 20 months
— 184 kwh/tonne of cathode of specific power reduction in FY 2008 over previous year
— Exploration led 28.7 million tonnes increase in mineral resource in FY 2008
— Several National and International Awards in the areas of Operational Excellence,
Human Resources, Environment, Safety, Quality and Corporate Social
Responsibility.
— Several Public Private Partnership social development projects implemented

— Proactive discussion with the policy makers in the areas of mining, safety,
environment and social development
— Our ability to attract the talent and its retention
— TERI Corporate Social Responsibility Award 2007

— 44% reduction in LTIFR in FY 2008 over the previous year
— 107.2 MW Wind Energy commissioned in Gujarat and Karnataka
— 5% and 4% reduction in power consumption per tonne of metal and ore over
previous year at smelters and mines respectively.
— 12% and 6% reduction in water consumption per tonne of metal and ore over
previous year at smelters and mines respectively
— More than 500,000 people positively benefited across 173 villages through our
corporate social responsibility initiatives.

key performance indicators
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BUSINESS REVIEW
DESCRIPTION results
Hindustan Zinc’s main revenue sources comprise zinc and NET SALES OF
Rs. 7,878crores
lead. Revenue (net sales) in FY 2008 was Rs. 7,878 crore against
Rs. 8,560 crores in FY 2007 – driven by highest ever zinc and
lead production.
Profits before interest, taxes and depreciation (PBDIT) was PBDIT
Rs. 6,231crores
Rs. 6,231 crore in FY 2008 against Rs. 6,639 crores in FY 2007.
The PBDIT margin (PBDIT-to-total income) was 71%. Stable
operating costs.
Return on Capital Employed (ROCE or EBIT-to-capital ROCE
50.7%
employed) was 50.7% in FY 2008 against 84.98% in FY 2007.
Earnings per share (EPS) was Rs. 104.04 in 2007-08, versus EPS
104.04
Rs. 105.12 in the previous year.
Lost time injury frequency rate was reduced from 5.46 LTIFR
44%
in 2006-07 to 3.07 in 2007-08. reduction over
previous year
Continued efforts of the Company have resulted in the reduction of specific energy and water consumption year on
year in smelters and mines. For more details please see page 38.
HZL identified 59 villages lacking in basic amenities for transforming them into model villages. During the year,
transformations of 32 villages into model villages were completed. For more details please see page 41.
During the year 3,425 employees were trained clocking 6.24 average training man-days for executives.
For more details please see page 28.

demandS and markets
Zinc
8=6GI6/;>GHIJH:D;O>C8 In terms of use of metallic elements, economies and rising production of

zinc ranks fourth after iron, aluminium galvanised sheets. There was also
and copper. Its major uses are: strong zinc demand from Brazil and
— Galvanising: Zinc is one of the best Russia, where the construction sector
forms of protection against has been benefiting from higher
corrosion, and is used extensively government spends on infrastructure.
in building, construction, Faster growth in demand from
infrastructure, household emerging markets more than offset
appliances, automobiles, steel a slowdown in the US, Japanese and
furniture, and many more. European zinc demand.
— Zinc Oxide: The most widely used
zinc compound, zinc oxide is used Global zinc mine production rose by 6%
in the vulcanisation of rubber, as during 2007 to 11 million tonnes, on the
well as in ceramics, paints, animal back of increased production in China,
NH:B>"B6CJ;68IJG:9EGD9J8IH feed, pharmaceuticals and other Kazakhstan, India and Australia, and
N7G6HHH:B>H6C986HI>C<H applications. A special grade of the starting of new mines in Peru,
N9>:"86HI>C<6AADNH zinc oxide has long been used in Bolivia, and Portugal.
NDM>9:H6C98=:B>86AH
NB>H8:AA6C:DJH photocopiers.
N<6AK6C>H>C< — Die Castings: Zinc is an ideal The largest increase in zinc metal
material for die casting and is output came from China, where refined
extensively used in hardware, zinc production grew by 17% to 3.7
electrical equipment, automotive million tonnes, or one-third of the
8=6GI7/:C9JH:D;O>C8 and electronic components. world’s output. Refined zinc production
— Rolled Zinc: Zinc sheets are used also increased significantly in Russia,
extensively in the building industry Mexico, Brazil and India. The market
for roofing, flashing and weathering for zinc concentrates eased somewhat
applications. These are also used from the very tight levels seen in the
in graphic art to make plates and previous three years, enabling the
blocks, as well as battery callouts smelters to improve capacity utilisation
and coinage. and obtain higher TC.
— Alloys: Zinc is extensively used in
making alloys, especially brass, In 2008, global zinc consumption is
which is an alloy of copper and zinc. expected to rise by 3.7% to 11.9 million
tonnes, in response to the continuing
Charts A and B show the ‘first use’ and strong demand arising out of Asia.
‘end use’ applications of zinc. Usage in China is expected to rise by
NIG6CHEDGI
another 10.4%, primarily due to major
N>C9JHIG>6AB68=>C:GN Global Market: Zinc investments in infrastructure projects.
N8DCHJB:GEGD9J8IH During 2007, global refined zinc Demand is also expected to increase
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consumption rose by 3% to 11.5 million in India, Japan, the Republic of Korea
tonnes, driven mainly by the rapid and Russia.
growth of the Chinese and Indian

BUSINESS REVIEW
In Europe, predicted rise in demand in 8=6GI8/<AD76AAB:O>C8EG>8:H

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sooner than forecasted and zinc prices monthly LME zinc prices. It shows demand rose strongly by 9.5% to 0.47
are also expected to stabilise sooner. that while prices have come down from million tonnes, the increase in zinc
$4,405 in December 2006 to $2,511 demand is led by India’s fast growing
World output of refined zinc metal is in March 2008, the long-term trend galvanising sector which accounted for
forecast to rise by 8.3% to 12.1 million is upward. about 70% of the total zinc demand.
tonnes in 2008 – thus maintaining For 2008-09, the rise in demand of zinc
a very narrow gap between metal Indian Market: Zinc is expected to remain robust driven by
demand and supply. The most Spurred by industrialisation and realty growth, manufacturing sector
significant increases are expected infrastructure demand, India has and infrastructure.
in India and China. the potential to see high growth in

demandS and markets continued
lead
The battery sector is the single largest

consumer of lead, accounting for
around three-quarters of demand.
It can be sub-divided into the
following groups:
— SLI (Starting-Lighting-Ignition)
batteries, which currently account
for around half of all lead demand.
These are mainly used in cars and
light vehicles, but are also found in
other applications such as golf
carts and boats. SLI battery
demand in turn can be split into
original equipment (OE) and
replacement, with replacement
demand outstripping OE demand
by about 4:1 in mature markets.
— Industrial batteries, which currently
consume approximately a quarter
of all lead produced. This sector
can be split roughly 50:50 into
stationary and traction batteries.
Stationary batteries are principally
used in backup power supply
systems; traction batteries are
used for motive power in equipment
such as forklift trucks and
motorised wheelchairs.
The remainder is used in non-battery

applications. This comprises several
small uses, which have proportionately
declined over time as the battery
sector’s market share has increased.
The second largest current end use
of lead for non-battery applications,
and accounting for approximately 8%
of lead consumption, is in the chemical
industry, in the form of lead-based
pigments and other compounds.
Principal markets are for cathode
ray tubes used in television screens
and computer monitors, and for
PVC stabilisers.

BUSINESS REVIEW
Global Market: Lead 8=6GI9/<AD76AAB:A:69EG>8:H

Global lead consumption rose by 3.1% )!*%%
to 8.2 million tonnes in 2007. It was the
sixth consecutive year in which global (!*%%
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the 25-year trend growth of 1.8%
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exports dropped from an average of
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in the second half – reducing available
metal for the rest of the world. While
it is believed that growth in lead
metal demand will be strong in 2008,
supply will again play a pivotal part in As Chart D shows, international price telecommunication and estimated
the market. of lead rose steeply between June 2006 power shortages over the next few
and October 2007 – when it reached an years should boost the need for
Global lead mine production increased all-time high of $3,720 per tonne. industrial and inverter batteries, and
by 2.7% to 3.3 million tonnes in 2007. keep demand growing at over 15%
Due to the recent increase in lead Indian Market: Lead per annum for the next three years.
prices, mine production is expected The Indian lead market is expected
to grow at a higher rate of 9.4% to 3.7 to grow from 0.28 million tonnes in
million tonnes in 2008, and then on to 2007-08 to 0.31 million tonnes in
4.03 million tonnes by 2010. Secondary 2008-09, with most of the growth
refined lead output also increased to coming from the automobile battery
3.6 million tonnes in 2007, and is sector. If the automobile sector can
expected to grow to about 3.7 million maintain its impressive double-digit
tonnes in 2008, roughly in line with the growth rates over the next few years,
rise in scrap supplies. one can continue to expect strong
growth in lead demand. It is expected
Refined lead recorded another year that the demand for lead by the battery
of deficit in 2007. In 2008 it is expected sector will grow from 0.25 million
that the refined lead and concentrate tonnes in 2007-08 to 0.275 million
markets will, at best, move into a very tonnes in 2008-09. The inverter
modest surplus – one that could easily industry, too, is expected to grow
be wiped out by the closure or delay of over the years. Rapid growth in
one mine or refinery.
In line with the Group’s exploration out to outline mineralisation below
philosophy to replace every tonne of a depth of 550 metres. Of these,
ore mined with at least one tonne 29 holes intersected ore widths with
of resource and to ensure resource significant grades averaging 15.5%
inventory of 17 – 20 years mine zinc and 2.0% lead.
life, HZL is engaged in continuous
exploration in and around its existing The Company has added 110.7 million
and new prospective tenements, with tonnes of reserves and resources
a team of 40 geologists. They employ in the period of April 2003 to March
the latest geophysical, geochemical 2008, gross of depletion of 22.1
and GIS technologies and high speed million tonnes.
deep drilling equipment.
In FY 2008 alone, Hindustan Zinc added
The success of exploration has fresh reserves and resources of 28.7
primarily been in the Sindesar Khurd million tonnes, before depletion of 5.8
and Rampura Agucha mines. In million tonnes. As on 31 March 2008,
FY 2008, the drilling programme the total reserves and resources
successfully increased the strike were 232.3 million tonnes, containing
length, by 300 metres, to 1,600 metres 27.5 million tonnes of contained
averaging 5.8% zinc, 3.8% lead and zinc-lead metal.
215 grammes per tonne of silver at
Sindesar Khurd. Exploration success has increased
the mine life to over 20 years at
At Rampura Agucha, 28,000 metres expanded capacity of over 1 million
of drilling in 32 holes were carried tonnes per annum.
successful
exploration efforts
Panoramic view of Rampura Agucha Mine
BUSINESS REVIEW

Exploration
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The Company’s objective is to become In FY 2008, the Company drilled a total

Hindustan Zinc’s a 1 million tonnes metal producer by of 65,800 metres – an increase of 55.6%
Exploration Results 2010. Exploration is a key component over 2006-07. The drilling programme
of this growth plan. Hindustan Zinc’s successfully increased the strike
— As on 31 March 2008, the exploration team, comprising 40 well- length at Sindesas Khurd 300 metres
total reserves (proved and trained geo-scientists, continues to to 1,600 metres, averaging 5.8% zinc,
probable) and resources expand the reserves and resource 3.8% lead and 215 grammes per tonne
base in its existing operating areas of silver. At Rampura Agucha, 28,000
(measured and indicated and prospecting tenements. metres of drilling in 32 holes were
as well as inferred), net of carried out to outline mineralisation
depletion in 2007-08, stood During 2007-08, exploration activities below a depth of 550 metres. Of these,
at 232.3 million tonnes, continued at an accelerated pace, 29 holes intersected ore widths with
including 27.5 million tonnes especially at the Company’s mines at significant grades – averaging 15.5%
of contained zinc-lead metal Sindesar Khurd and Rampura Agucha. zinc and 2% lead.
Chart E shows the substantial increase
— The Company has added in drilling activity by Hindustan Zinc Chart F gives the reserves and
over the last couple of years. resources position of the Company
110.7 million tonnes of
reserves and resources
during the period April 2003
to March 2008, before
depletion of 22.1 million
tonnes
— In 2007-08 alone, Hindustan
Zinc added fresh reserves
and resources of 28.7 million
tonnes, before depletion
of 5.8 million tonnes –
containing 4.0 million tonnes
of metal (zinc and lead)

BUSINESS REVIEW
at the end of 2006-07 and 2007-08, net Focused exploration at Sindesar Khurd facilities and ground geophysical
of depletion. has resulted in the resource base going surveys. Application of hyper-spectral
up to 37 million tonnes – making it the remote sensing data for regional
The Company’s combined reserve and second largest ore body in Hindustan exploration is under implementation.
resources position has increased by Zinc’s portfolio after Rampura Agucha. 2008-09 will see the use of newer
22.9 million tonnes – from 209.4 million technology, such as remote sensing
tonnes as on 31 March 2007 to 232.3 Exploration has established a good interpretation, airborne geophysical
million tonnes as on 31 March 2008. potential for outlining of resources surveys and advanced geochemical-
in deeper extension of Rajpura Dariba mineralogical investigations, this
The combined reserves and mine. Test drilling has commenced indeed will help us to further enhance
resources at Rampura Agucha alone in prospective areas in Zawar. our resources in near mine as well as
have been augmented to 107.3 million in regional exploration.
tonnes as on 31 March 2008 – thus There have been technological
achieving a landmark crossing of improvements and modernisation
100 million tonnes. in database management, computing
Zinc and Lead Mine Resource and Reserve Summary
Resource Reserves
|
Proved and
Measured Zinc Lead Zinc Lead probable Zinc Lead
and indicated grade grade Inferred grade grade reserves grade grade
Mine million MT % % million MT % % million MT % %
Rampura Agucha 22.8 15.7 2.2 21.0 14.9 1.9 63.6 13.0 1.9
Rajpura Dariba 6.6 8.3 2.5 11.0 5.8 1.3 7.1 6.2 1.5
Zawar 22.9 5.0 1.8 19.0 3.9 3.0 7.2 3.9 2.1
Kayar 2.3 12.6 1.9 6.7 10.0 1.7 – – –
Sindesar Khurd 21.0 6.4 4.0 14.2 5.0 3.8 2.0 5.3 2.1
Bamnia Kalan 1.7 5.3 1.8 3.4 4.7 3.7 – – –
Total 77.3 9.1 2.6 75.3 8.0 2.5 79.9 11.4 1.9

Operational Performance
Hindustan Zinc is the second largest integrated

producer of zinc in the world. Its main products
are zinc and lead, besides sulphuric acid,
cadmium and silver
Table 1: Mining Operations, Production: 2006-07 and 2007-08
Ore mined (tonnes) Zinc concentrate (DMT) Lead concentrate (DMT)

| |
Location Type of mine 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Rampura Agucha Open Cast 4,068,215 3,748,840 914,917 851,089 74,874 69,905
Rajpura Dariba Underground 518,049 512,634 42,213 43,859 11,284 10,042
Sindesar Khurd Underground 295,200 66,441 24,022 5,785 12,422 2,168
Zawar Underground 901,635 812,000 54,676 46,654 27,175 25,219
Total 5,783,099 5,139,915 1,035,828 947,386 125,755 107,334
Note: DMT is Dry Metric Tonnes
Hindustan Zinc’s operations can be Rajasthan. Apart from Sindesar Khurd, Mining
classified into mining and smelting. which is a new mining site, the other six The Company’s mining operations are
Currently, it has operating facilities units are accredited with ISO 9001:2000 located in Rampura Agucha, Rajpura
at seven locations, of which four are for quality, ISO 14001: 2004 for Dariba, Sindesar Khurd and Zawar, all
mining operations, and the remaining environment, and OSHAS 18000 for in Rajasthan. Rampura Agucha, an
three are smelting. Barring the health and safety. open cast zinc-lead mine, is located
smelting facility at Vishakhapatnam in Bhilwara district 225 km north of
in Andhra Pradesh, all other facilities Udaipur, Rajasthan. It is world’s third
of the Company are in the state of largest open cast mine for zinc and
lead, with a capacity of 5.0 million
tonnes per annum after a recent
expansion. It is also one of the lowest
cost zinc mines in the world, and has
a 5S certification and a four star rating
from the British Safety Council.
The other three mines, viz. Sindesar

Khurd, Rajpura Dariba, and Zawar,
are underground mines with an
annual capacity of 0.3 million tonnes,
0.6 million tonnes and 1.2 million
tonnes of ore respectively. Table 1 gives
the overall production summary of the
Company’s mining operations during
2006-07 and 2007-08.

BUSINESS REVIEW
During the year, the total quantity of — Mining productivity increased by

ore mined by the Company increased 9.8% – from 143 tonnes per person
by 12.5% – from 5.1 million tonnes in in 2006-07 to 154 tonnes per person
2006-07 to 5.8 million tonnes in in 2007-08. Between 2003-04 and
2007-08. Production of zinc 2007-08, mining productivity
concentrate increased by over 88,442 increased at a compounded annual
DMT – from 947,386 DMT to 1,035,828 growth rate (CAGR) of 12.5%.
DMT during the same period. — This rise in productivity has been
complemented with substantial
Hindustan Zinc is one of the most improvements in recovery rates
efficient zinc and lead producers in in the last few years. Recovery of
the world. Productivity of the mining zinc in the mining operations has
operations has increased consistently consistently increased from 88.7%
in the last few years. in 2002-03 to 91.2% in 2007-08.
Recovery of lead has improved from
64.4% to 68.8% over the same period

The Chanderiya Hydro II zinc smelter training. To make the whole process
achieved the distinction of fastest robust, the people were taken through
commissioning in the history of the a series of tests to enhance their
zinc industry globally – within 20 understanding of the smelter
months of project ground breaking. operations. Mock situations were
The additional focus of this project was simulated with operators made to
to achieve a DREAM RAMP UP which react to adverse situations and
successfully achieved the smoothest checked for adherence to standard
ramp-up to rated capacity and quality operating procedures. In addition, over
within 10 days of the smelter start-up. 50 operators and maintenance
engineers were also trained overseas.
HZL charted out Phase II of its
expansion to increase capacity to A stringent process of cold
670,000tpa of metal by 2008. The key commissioning with handover and
learning’s from the earlier Phase I takeover protocols was implemented
expansion were collated after several between the projects and
sessions of intense brainstorming and commissioning teams. Most important
made available to the project team. of all was the single unified voice
A Commissioning Champion was across the entire team to make the
nominated nearly one year in Fastest Commissioning and Dream
advance of the actual start up Ramp-Up happen – the driving force
of the commissioning. behind the team’s determination and
enthusiasm.
The operating team was thoroughly
trained and their knowledge enhanced
through a structured On-The-Job
the fastest global

View from Chanderiya II cell house control room
BUSINESS REVIEW
smelter commissioning
continued
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Smelting Exchange (LME) registration for zinc

Hindustan Zinc’s smelting facilities are metal produced from its Hydro I
located at Chanderiya and Debari in smelter at Chanderiya under the brand
Rajasthan and Visakhapatnam in of Hindustan Zinc SHG 99.995 and its
Andhra Pradesh. Chanderiya Smelter lead Ingots under the brand of
Complex with a capacity of 525,000 VEDANTA 99.99. Table 2 and Chart G
tonnes is the world’s largest single give the details of capacities and
location zinc smelting complex. production of the smelting operations.
At the beginning of 2007-08, Hindustan Table 2: Capacity of Metals (tonnes)

Zinc had a smelting capacity of 496,000
tonnes. In FY 2008, it successfully Total capacity as on
added a second hydrometallurgical zinc 31/3/08 31/3/07
smelter (Hydro II) at its Chanderiya Chanderiya 530,000 360,000
plant in a record time of 20 months, Debari 80,000 80,000
with a capacity of 170,000 tonnes per Vishakhapatnam 56,000 56,000
annum. As a result, on 31 March 2008,
the Company’s metal production Total 666,000 496,000
capacity had gone up to 666,000 tonnes
per annum. Subsequent to the Production of saleable metal has
commissioning of 88,000 tonnes per increased substantially in the last few
annum zinc debottlenecking in April years. During the year, saleable metal
2008, Hindustan Zinc’s metal capacity production grew by 23.3% – from
(Zinc and Lead) stands at 754,000 392,868 tonnes in 2006-07 to 484,569
tonnes per annum. tonnes in 2007-08. This was driven by
both zinc and lead, which increased at
During 2007-08, Hindustan Zinc 22.4% and 30.7% respectively. Table 3
received the coveted London Metal has the details.
Table 3: Production of Metals (tonnes)
Saleable metal Saleable zinc Saleable lead

| |
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
Chanderiya 351,788 268,408 293,541 223,855 58,247 44,552

Debari 78,511 74,353 78,511 74,353 – –
Vishakhapatnam 54,271 50,107 54,271 50,107 – –
Total 484,570 392,868 426,323 348,316 58,247 44,552

BUSINESS REVIEW
While increase in saleable metal output realisation of by-products which were commence production by 2010-11, once
was driven by the increase in Hydro II offset by higher energy prices and operational, this project will reduce the
facility at Chanderiya coming on- general inflationary pressures. cost of procuring coal.
stream in third quarter of FY 2008, Royalties, which are LME-linked,
production of the existing capacities were Rs 7,966 per tonne in FY 2008 Marketing
at Chanderiya and other locations also compared with Rs 11,587 per tonne Hindustan Zinc has a dedicated team
contributed to this growth. During in FY 2007. which services customers in India
the year, production at Debari and using an extensive network of sales
Vishakhapatnam increased by 5.6% Coal depots across the country. These
and 8.3% respectively. Coal is one of the most important operations are managed through four
inputs that Hindustan Zinc procures offices in Mumbai, Kolkata, Delhi and
As in the case of mining, productivity from the market. During 2007-08, the Hyderabad. The domestic and exports
of smelting operations has also Company consumed 630,265 tonnes marketing headquarters is in Mumbai.
increased significantly in the last few of coal.
years. During 2007-08, productivity Apart from its presence in India, the
in smelting increased by 9% – from Government of India allocated a coal Company is also a significant player
90 tonnes per person in 2006-07 block to a group of six consumers of in the export market. During 2007-08,
to 98 tonnes per person in 2007-08. coal; Hindustan Zinc is one among Hindustan Zinc exported to around 26
them, having a share of 31.5 million countries in Europe, US, South East
Apart from these improvements, the tonnes. A joint venture named Asia, Middle East, China, Japan and
Company has also been successful Madanpur South Coal Company in the SAARC region – and 32.3%
in bringing down its consumption of Limited has been formed to implement of the Company’s revenues came
energy and water. Moreover, with the project. Progress of this venture from exports.
its emphasis on safety and better is on track, and it is expected to
monitoring across its manufacturing commence production by 2010–11. During 2007-08, the Company
locations, Hindustan Zinc has made its This project will reduce the cost of strategically widened its customer
operations much safer with significant coal and enhance our long-term base for sulphuric acid, by commencing
reductions in accidents. energy securities. exports. As a part of its logistics
improvement initiative, the Company
Unit Costs Recognising the importance of became the first company in Indian
The Company succeeded in maintaining securing its supply of coal, the history to transport the sulphuric acid
the stable cost of production of finished Company had entered into a joint by rail rake. In terms of volume, sales
metal at the back of greater efficiencies venture in 2006 called Madanpur South of sulphuric acid increased by almost
in the operations. Unit costs of Coal Company Limited, which has coal 7% – from 610,263 tonnes in 2006-07
production in 2007-08 excluding reserves of 175 million tonnes. With a to 651,592 tonnes in 2007-08.
royalties were stable at Rs. 27,625 per 21.8% interest, Hindustan Zinc has a
tonne of zinc compared with FY 2007, share of 31.5 million tonnes in the coal The Company is actively using
due to higher operational efficiencies, block. Progress of this venture has technology such as online auctions
increase in volumes and better been on track, and it is expected to to improve efficiencies in marketing.

projects
Hindustan Zinc has a strong track record of

efficient execution of projects, and in crashing
timelines and budgets in the process.
projects
growth – next stage Its success in project execution has to
do with a set of interrelated factors.
The Company has recently announced a list of new projects in mining — First, the core project team is both
smelting and captive power plants, which will be made operational by small and integrated, with each
2010. These are: member having end-to-end
ownership and accountability.
— Mining: Expansion from 5.0 million tonnes per annum to 6.0 million Each project is divided into several
tonnes per annum at Rampura Agucha; expansion from 0.3 million packages and each package in
tonnes per annum to 1.5 million tonnes per annum at Sindesar its entirety is the responsibility of
Khurd; and a new mine with an initial capacity of 0.3 million tonnes one person.
— Second, project planning and
per annum at Kayar in Rajasthan. execution is based on robust
— Smelting: Set up a 210,000 tonnes per annum zinc monthly and rolling schedules.
This allows greater visibility of each
hydrometallurgical plant and a 100,000 tonnes per annum lead part of the project in the context
plant at Rajpura Dariba. of the overall execution.
— Third, the Company always uses
— Captive Power: To meet the energy requirements for these
reputable and established vendors
operations, the Company will also add 2x80 MW captive power and contractors for greater
plants at Rajpura Dariba. reliability and control over the
execution. Most are repeat vendors.
Completion of these projects will take our annual mining capacity Thus, there is a built-in assurance
to more than 1 million tonnes (1,065,000 tonnes) per annum – making of quality and timely delivery. In
Hindustan Zinc the world’s largest zinc producer by 2010, with fully addition, it employs an appropriate
integrated mining and captive power generation capabilities. mix of incentives to assist in the
seamless execution of projects
In addition to the above, we also expect to progressively increase our from one stage to another.
silver production from the current levels of 2.8 million ounce per
annum to a level of approximately over 16.1 million ounce per annum.

BUSINESS REVIEW
The Company successfully completed

the following projects:
— 170,000 tonnes per annum of
second hydrometallurgical zinc
smelter at Chanderiya (Hydro II)
was commissioned with a capacity
of 170,000 tonnes per annum in a
record time of 20 months. This
project achieved ramp-up to full
capacity within the first quarter
of its operations and is registering
recovery rates of over 96%.
— The Company added an 80 MW
thermal power plant for captive
use at Chanderiya.
— During the year, it also
commissioned 68.8 MW of wind
power capacity in Gujarat and
Karnataka, taking Hindustan Zinc’s
wind energy capacity to 107.2 MW
as on 31 March 2008.
— In the first quarter of FY 2009, the — The Company also concluded the Other ongoing projects of Hindustan
capacity of Rampur Agucha mine debottlenecking of 88,000 tonnes Zinc are an 80 MW captive power
was increased from 3.75 million per annum of zinc smelting capacity plant in Zawar, and 17 MW wind power
tonnes per annum to 5.0 million – 80,000 tonnes at Chanderiya and capacity expansion at Gadag, in
tonnes per annum. With this, the 8,000 tonnes at Debari – in the first Karnataka both of which are
total ore production capacity of quarter of 2008-09. This has on schedule.
the Company has increased to increased refined metal capacity
7.10 million tonnes per annum. to 754,000 tonnes per annum.

continued
6.24 average executive training

man-days. 78 employees were given
exposure to the best in class practises
across mines and smelters globally.
Company runs a systematic ACT-UP

(Accelerated Competence and
Upgradation Programme), process
to identify the talent and nurture them
to take up the leadership position in
future. During the year, under this
programme 43 high performing
individuals were identified as ‘Stars
of the Business’ who will be groomed
to take up leadership positions.
Besides the Production Incentive

Scheme several reward schemes like
CEO Reward, Achievement Awards
are in place with an objective to give
Human Resources including engineers, chartered recognition and boost employee morale
Hindustan Zinc is committed to building accountants, MBAs and science and motivation.
a high performing workforce – where graduates from the best institutes,
capabilities are valued, careers are of which 16% are women. Company has Improvement Initiatives like Six
built, leaders are developed from within a systematic programme for induction Sigma, Quality Circles and High
and performance is cherished. and training for freshers. They are Impact Projects have increased
trained in prestigious institutes like IIT, the engagement and involvement of
Over the years, Hindustan Zinc’s BITS-Pilani, premier management employees at the shop floor. The
robust HR policies and practises have Institutes, Hoffincon’s Maintenance Company has also ensured higher
built a dedicated and highly competent Institute Chennai, etc. to equip them employee engagement with the
workforce which has enabled the with required skills. improvement in the quality of life
Company in continuously improving at the workplace as well as at the
its operational performance and To enable our employees to enhance townships. All our townships have
in successfully executing the their competencies and upgrade facilities like schools, recreational
expansion projects. their skills, the Company organises clubs, gymnasium, medical facilities,
extensive training programmes shopping centres, playgrounds,
To meet our additional manpower covering all facets of professional landscape gardens, etc. Our
required for expansions, during the discipline. During the year 3,425 Chanderiya School topped in
year we recruited 190 professionals employees were trained clocking the district.

BUSINESS REVIEW
During the year, HR has moved a step Since the implementation of SAP R/3, chain does not affect the overall
ahead and introduced several online Hindustan Zinc has enhanced the infrastructure. It has also built a
HR systems making performance system for better and stringent disaster recovery site at a different
management a more transparent and controls, as well as more effective seismic zone to ensure continuity of
objective process. Also, with the reporting. Many critical areas such business in the case of any disaster
introduction of an online HR Manual, as transportation and logistics, at the primary site.
the Company policies, Code of Conduct exports, imports and key value drivers
and SOPs are more accessible. have been taken up for implementation. Going forward, Hindustan Zinc plans
The Company has also recently to implement a Business Intelligence
The Company believes in its ongoing upgraded SAP R/3 to SAP ECC 6.0 to solution to convert raw data into
two way communication with all the improve the functionality of the system. integrated, meaningful and actionable
employees including the workers, intelligence that helps in streamlining
Unions at various levels and it enjoys Hindustan Zinc also uses IT in process processes further to reduce costs.
cordial relations with the Unions. control, mine planning and geological This solution will enhance the
exploration. Some of the tools used are analytical capabilities of the users and
Information Technology (IT) Data Mine, Geosoft, Mapinfo, Encom result in real time reporting for better
Operational efficiencies and plant Discover, ArcGIS and Plant Information decision making.
and mining technology have been and Management System. The
continuously upgraded over the years Company has a separate Human
and to effectively monitor managerial Resources Management System
effectiveness, the Company has (HRMS) to assist the HR function.
adequately invested in setting up state- It also has a fully functional e-sales
of-the-art IT facilities across its portal for its customers where they
multiple locations. can place new orders and track
past ones. Similarly, it has an
All manufacturing facilities, offices and e-procurement portal, where it
depot locations of the Company are conducts reverse auctions and through
connected using hybrid technology – which vendors get information related
namely, MPLS, leased line VPN, and to their deliveries and payments. Apart
VSATs with adequate failover links. from these, the Company also has a
Hindustan Zinc has an advanced ERP Document and Policy Management
solution based on SAP R/3, which System, Legal Case Management
enables it in real time processing of System, Project Information and
transactions in the areas of finance Retrieval System, Note for Approval
and control, materials, production, Workflow System, and a system for
maintenance, sales and distribution tracking customers’ complaints.
and quality management. During the
year, the coverage of the ERP system Hindustan Zinc has invested to build
was extended to the new Hydro II zinc in redundancy into the system so that
smelter plant in Chanderiya. a system failure at any point of the

Financial Performance
Table 4 presents the summary of FY 2008, an increase of 65.7% the investments also generated higher
Hindustan Zinc’s financial performance compared with FY 2007, by improving rate of return. Other income also
during the year 2007-08 and compares sales to major domestic customers includes the write back for excess
it with the previous year. thereby generating better contribution provision of royalty made earlier
vis-à-vis exports. Consequently, years as per court decision in favour
Table 4: Hindustan Zinc’s abridged exports were limited to 88,000 tonnes of Company.
profit and loss statement (Rs. of zinc metal in FY 2008, down 39.3%
crore) compared with FY 2007. In addition Despite facing higher energy prices,
to refined zinc metal, we also sold Hindustan Zinc succeeded in
2007-08 2006-07 232,000 dry metric tonnes of zinc maintaining the stable cost of
Net Sales from concentrate and 65,000 dry metric production of finished metal at the back
operation 7,878 8,560 tonnes of lead concentrate, in FY 2008. of greater efficiencies in the production
processes. Unit costs of production in
Total income 8,729 8,791 Despite 22.4% increase in saleable zinc FY 2008 excluding royalties were stable
PBDIT 6,231 6,638 and 30.7% increase in saleable lead at Rs. 27,625 per tonne of zinc
PBIT 6,009 6,482 production volumes and stable compared with FY 2007, due to higher
PBT 5,985 6,454 operating costs, PBDIT in FY 2008 was operational efficiencies, increase in
Income Tax 1,589 2,012 lower at Rs 6,231 crores compared with volumes and better realisation of by-
PAT 4,396 4,442 FY 2007 primarily due to the significant products which were offset by higher
fall (about 17%) in LME zinc prices and energy prices and general inflationary
the appreciation of the Indian rupee pressures. Royalties, which are LME-
The Company achieved record zinc and against the US dollar by more than linked, were Rs 7,966 per tonne of zinc
lead metal production in FY 2008 of 11%. However, the Company was able in FY 2008 compared with Rs 11,587 per
426,323 tonnes and 58,247 tonnes to contain these negative impacts tonne of zinc in FY 2007.
respectively, an increase of 22.4% and through its volume growth,
30.7% compared with the previous year. improvements in operational During the year, the effective tax rate
The increase in production was efficiencies and higher by-product was 25.8% compared to the previous
primarily on account of the production credits and net profit was down only year’s rate of 30.5% in FY 2007. We have
from the newly commissioned Hydro II marginally from Rs.4,442 crore in taken a number of steps to improve our
smelter and the improved performance FY 2007 to Rs.4,396 crore in FY 2008. efficiencies in tax management. There
from the existing smelters. are several tax incentives available to
The other income increased to Rs 851 companies operating in India; we have
Total mined metal production during crores in FY 2008 compared to the made effective use of these tax benefits
FY 2008 was 629,019 tonnes, an previous year of Rs.231 crore in in our operations.
increase of 10% compared with the FY 2007, mainly on account of higher
corresponding previous year. level of investible surplus cash which In summary, the adverse impact of
increased from Rs 4403 crores to Rs lower zinc LME prices and appreciation
We sold 338,000 tonnes of zinc metal 6632 crores in FY 2008, arising from of rupee have been effectively
in the domestic markets during strong operational cash flows. Further countered by increasing the volumes,

BUSINESS REVIEW
maintaining stable operating costs, takes care of our long term an ‘owner’ at a senior level, and the
improving yield on investments, requirement in the form of investments impact to the Company if a risk
generating strong cash flows and and capital expenditures and still materializes and its likelihood of
effective tax management. The result having a large investible surplus. Thus crystallization is regularly updated.
of these actions is net profit has Hindustan Zinc continues to be a Zero
remained stable with Rs 4,396 crores Debt Company. Risk Management Practice
corresponding to the previous year. Hindustan Zinc’s risk management
In summary we continue to have a process, approved at the highest level
We have taken a number of steps to strong balance sheet with shareholders by its Board of Directors, is set up
minimise working capital used in the fund equity of Rs 11,848 crores. Our across the enterprise. It is designed
business and have primarily focused continued focus on operational to identify potential events that may
on gross working capital i.e. efficiencies and higher volumes enable affect the entity, manage such risks
receivables and inventory. Effects us to operate at healthy margins and within clearly laid down parameters,
of all theses measures have yielded we generate strong cash flows thereby and to provide reasonable assurance
substantial decrease in the operating putting us in a robust liquidity position regarding the achievement of
cycle of receivables and inventory which can be leveraged effectively entities objectives.
periods; these results can be seen when a need arises.
in the Table 6. The Company’s risk management
Risks and Uncertainties framework includes:
Table 6: Activity Ratios Our business is subject to a variety — Hindustan Zinc’s risk
of risks and uncertainties which are management policy
2007-08 2006-07 no different from any other company — The risk organisation structure
Receivables period 20.6 23.7 in general and our competitors in — Roles and responsibilities for
Inventory period 75.7 84.6 particular. Such risks are the result managing risks
Operating cycle 96.2 108.4 of not only the business environment — Guidelines on the risk
in which we operate but also of other assessment process
factors over which we have little or no — Possible response to
We generated strong cash flows from control. We have well documented and identified risks
operating activities of about Rs 4,000 practiced risk management policies — Templates for documenting and
crores, operating profit before working that act as an effective tool in mitigating reporting risks
capital changes were lower by about Rs various risks to which our business
1,000 crores, which have been largely is exposed in the course of its day- Risk assessment is carried out in all
offset by improved working capital to-day operations as well as in the key operations and projects of the
management and efficient tax strategic actions. Company. At the unit level, risks are the
management resulting in lower cash responsibility of the SBU heads/
generated from operating only of about Risks are identified through a formal operating managers or supervisors.
Rs 400 crores. risk management programme with Once a risk is identified, it is necessary
active involvement of business to design and document control
Our continued strong financial managers and senior management measures to mitigate/minimise the
performance more than adequately personnel. Each significant risk has risk. These controls are checked

continued
internally and are reviewed by the As a general policy, we aim to sell our environmental damage at or to its
Management Assurance System (MAS) products at prevailing market prices. mines, smelters, refineries or related
– a team that is not connected with Hedging activity in commodities is facilities and also to communities that
the day-to-day management of the undertaken on a strategic basis to a live near the mines and plants. Such
Company. Risk registers are kept limited degree and is subject to strict incidents not only result in expensive
and updated; and residual risks are limits laid down by our Board and is litigation, damage claims and penalties
measured on a regular basis. The subject to strictly defined internal but also cause loss of reputation.
Board of Directors are regularly controls and monitoring mechanisms.
apprised by the management of high To mitigate such risks, Hindustan Zinc
level risks and what mitigating steps Foreign Currency proactively uses state-of-the-art
are being taken. Hindustan Zinc’s exposure to the technologies to make its operations
currency markets comes from its US safe and environment friendly. Today,
Commodity dollar determined pricing of zinc and it is one of the most energy efficient
The revenues of Hindustan Zinc are lead. Appreciation of the Indian rupee companies in the world, and a leader
directly linked with the global market vis-à-vis the US dollar can affect in meeting safety and environmental
for its products, viz. zinc and lead. revenues. To mitigate this risk foreign norms in the industry. We accord very
Adverse fluctuation in prices of these currency exposures are managed high priority to safety, health and
commodities could have a significant through the Company’s hedging policy. environment matters.
impact on financial performance. This policy is reviewed periodically to
However, the Company has been ensure that the risk from fluctuating other risks
successful in containing the impact currency exchange rates is Apart from these, some other risks
of lower LME prices for zinc by an appropriately managed. facing the Company include risks
increase in its volumes and more cost associated with completing new
efficient operations which we continue Safety, Health and projects within timelines and budgets,
to deliver in order to minimise the Environment Risks especially given the current inflationary
impact of adverse market fluctuation. Our operations, by its nature are outlook and continued rise in global
subject to extensive health, safety energy prices. Hindustan Zinc has a
The Company aims to achieve average and environmental legislation like strong track record in completing its
LME prices for a month or a year; anywhere else in the world. Significant project ahead of schedules and within
average realised prices may not changes in these regulations can have budget which in turn mitigates this risk
necessarily reflect the LME price an adverse impact on the operations to a greater extent.
movements because of a variety of and financial performance of the
reasons including uneven sales during Company. We are engaged in mining The Company regularly reviews
the year. Any fluctuation in the prices activities which are inherently these risks and takes appropriate
of metal that we produce and sell will hazardous and any accident or steps to mitigate.
have an immediate and direct impact explosion may cause personal injury
upon the profitability of our business. or death, property damage or

BUSINESS REVIEW
Internal Control Systems uncertain. For us, uncertainties arise

Hindustan Zinc has a strong and from the behaviour of financial and
adequate internal audit and control metals markets including the London
systems commensurate with the size Metal Exchange, fluctuations in interest
of its business to ensure that all and or exchange rates and metal
transactions are authorised, recorded prices; from future integration of
and reported correctly. Regular acquired businesses; and from
internal audit visits to the operations numerous other matters of national,
are undertaken to ensure the regional and global scale, including
Company’s high standards of internal those of a political, economic, business,
control are maintained. These consist competitive or regulatory nature. These
of comprehensive internal and uncertainties may cause our actual
statutory audits which are conducted future results to be materially different
by top international audit firms. than those expressed in our forward-
Independence of the audit and looking statements. We do not
compliance function is ensured by the undertake to update our forward-
direct reporting of the internal audits looking statements.
to the Audit Committee of the Board.
Details on the composition and
functions of the Audit Committee can
be found in the chapter on Corporate
Governance of the Annual Report.
Cautionary Statement
This report on Management Discussion
and Analysis contains “forward-looking
statements” – that is, statements
related to future, not past, events.
In this context, forward-looking
statements often address our expected
future business and financial
performance, and often contain words
such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,”
“should” or “will.” Forward–looking
statements by their nature address
matters that are, to different degrees,

sustainable development
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Sustainable Development – emissions are kept to an absolute expertise is shared for effective
Committed To Improving minimum, driving a number of implementation of the projects.
Performance initiatives to create value from waste We see ourselves as a facilitator in
As a responsible corporate citizen and continuously striving to surpass addressing the problems of our local
Hindustan Zinc has a clear focus on the best industry standards. community, and strive to find a solution
sustainable development, it is a key through consultative process with
element of our business and corporate We continuously strive to uplift the the local stakeholders.
philosophy. Our ability to maximize economic wellbeing of our
related opportunities and minimizing neighbourhood communities through Our work towards sustainable
the risks is unique in itself and in turn various initiatives like sustainable development has been recognized
creating value for our shareholders. livelihood, health care, and education. through various local, national and
Invariably all specific initiatives follow international bodies.
Our approach towards managing identification of need in consultation
environment is one of the best in class with the beneficiaries. Health, Safety and Environment
in our sector. We follow best practises (HSE)
in the management of environmental Hindustan Zinc works in the social Health and safety of Hindustan Zinc’s
impact and related opportunities. development of the neighbourhood employees is of paramount importance
Employing environment friendly community through involving like to the Company. Preventing workplace
technologies, optimizing the usage minded partners like State accidents and controlling the incidence
of energy and resources through Governments, NGOs, etc., to form of occupational diseases is a top
recycling and reuse procedures, a partnership in which the area of priority, and several technological and
administrative controls have been put
in place to achieve health, and
environment objectives. These include:
— Safety reviews and audits by
internal and external experts.
— Routine safety inspection.
— Employing environment friendly
technologies.
— Incentives linked with safety
performance.
— Compliance with all the legislations
applicable.
— Safety score-card.
— Ensure all our employees including
contract labours implement health
and safety policies and procedures.
— Implementing learnings from near
miss incidents/accidents/first aids.
— Safety stewardship: driving safety
initiatives down the line.

sustainability
Health
In addition to various healthcare camps
across 173 operational villages in the
neighbourhood of its mines and plants
(see the next section on Corporate
Social Responsibility), Hindustan Zinc
has six hospitals/dispensaries at its
operating locations with all requisite
facilities, and with qualified doctors
and nurses being available round the
clock. The Company also has tie-ups
with reputed hospitals in the country
to provide best health and medical
facilities to the employees and
their dependents.
Safety
The index used is the lost time injury
frequency rate (LTIFR). It is the number
of injuries involving loss of work time
per million working hours.
In April 2007, Hindustan Zinc set a

target of reducing LTIFR by 20% at its
operations. The actual performance:
LTIFR reduced by 44% from 5.46 in
2006-07 to 3.07 in 2007-08.
Despite the Company’s continued focus

on safety, there were, unfortunately,
five fatalities all related to contract
workers. This is a cause of concern.
Hindustan Zinc continues to strengthen conducts both introductory and Hindustan Zinc will continue to learn
its focus on safety by imparting training specialised training. Safety training and evolve its safety and occupational
programmes to all contracted is compulsory for all new employees health systems according to its
personnel and better monitoring of and refresher training is periodically changing needs and best practises
safety related processes to minimise carried out in the different facilities. in the Industry. Considering the
the risk of such incidents. In 2007-08, HSE training was given environment in which the Company is
to 17,378 employees including operating increased emphasis will now
To sensitise the workforce on health contract workmen. be placed on behavioural aspects of
and safety issues, the Company industrial safety.

FOCUSING ON SAFETY
sustainability
Hindustan Zinc gives paramount In addition to this, to assess the safety

importance to its employee safety, with performance, safety score cards and
a focus to reduce its LTIFR (Lost Time physical condition tour audit systems
Injury Frequency Rate) year after year. have been introduced this year. Safety
Riding on the success story of HSE score card is a point based system
steward system and near miss which assesses key performance
reporting implemented last year, the indicators like LTIFR, TIFR, safety
safety culture is strengthened further training, review mechanism, near
with the introduction of exclusive misses recorded, etc to judge the
contractor safety officers for large safety performance of the unit on a
contractors and HZL appointed monthly basis. Physical condition tour
exclusive safety officer for pool of is a field audit giving thrust to assess
smaller contractors. We have also the conditions in areas of general
given thrust to vehicle/driving safety condition of workplace material
and initiated guidelines in this respect. handling, equipment health, hazard
These initiatives have promoted safe control, emergency systems and
behaviour among contract workmen PPE compliance.
and reduced risks at our operations.
In order to improve our safety
All the efforts of implementation on performance continuously we have
safety performance have resulted in initiated external safety audits which
continuous reduction of the Company’s have been carried out to assess the
LTIFR from 5.46 in FY 2007 to 3.07 functionality, adequacy and adherence
in FY 2008, a reduction of 44% year- of safety management systems across
on-year. all our operations to further improve.

continued
Environment
Hindustan Zinc’s approach towards Disaster Management – Preparedness
environmental sustainability is to
optimise resource use, minimise The Company voluntarily decided to coordinate with the National
the carbon footprint and conserve Disaster Management Authority (NDMA) and the Disaster Management
bio-diversity in and around its Institute (DMI), Bhopal, to conduct an on-site and off-site emergency
operating locations. mock exercise on 24 September 2007 at its Chanderiya Lead Zinc
The Company has a qualified team of Smelter. The drill was aimed at testing the preparedness of plant
environment professionals consisting management and the district administration to tackle emergency
of certified ISO auditors, environment situations under three scenarios:
engineers, scientists and ecologists. 1. Leakage of propane and consequential fire and explosion.
The team is governed by Hindustan 2. Leakage of chlorine.
Zinc’s HSE policy, and its functions are 3. Leakage of sulphur dioxide (SO2) gas.
reviewed at various fora such as daily
operations meetings, monthly review The drill was the first of its kind in Rajasthan and was conducted in the
meetings at the plant and Company full view of media, external observers, the district administration and
levels, and quarterly HSE Committee the Chief Inspector of Factories, Government of Rajasthan. The three
meetings at the group corporate
level. All employees from top scenarios were enacted sequentially and the disaster control
management to shop floor workmen machinery of Hindustan Zinc was put to test in order to control them.
are expected to champion the cause
of environmental protection.
— A leakage from the propane tank was announced to the control
room at 9.55 am. Immediately the sprinkler cooling system was
2007-08 has seen significant triggered; rescue teams and ambulance arrived within five
improvement in energy and water minutes; and the situation was under control in less than
utilisation, reduction in emissions and 10 minutes. The mock drill also included ferrying injured ones
adoption of environment friendly to the nearest hospital.
technologies across all the operations.
— This was followed by the announcement of leakage in the chlorine
Energy Conservation house. The neutralisation system was immediately activated and
Hindustan Zinc’s total energy use the control room directed medical and fire units to reach the
during 2007-08 was 10.53 terra-joules
(TJ). This included 1.87 terra-watt-
incident point. A water curtain was formed and sprinklers were
hours (TWh) of electricity (equivalent deployed to dissolve the chlorine gas.
to 6.7 TJ), most of which was produced — In the third scenario of SO2 leakage, evacuation plans for affected
in captive power plants. About 3.8 TJ
of energy was produced and used villages were enacted. Off-site emergency was declared by the
‘at-source’ for the smelting operations. District Collector and all road and railway traffic to and from
Chittorgarh was stopped.
The exercise got recognised as one of the best off-site exercise by the
National Disaster Management Authority.

sustainability
Under Six-Sigma initiatives, dedicated

teams have taken up a number of
projects to reduce energy consumption.
Their projects have resulted in a
sustained decrease in specific energy
consumption over the last three years.
Charts I and J show the general trend
in reduced energy use both in smelters
and mines.
Water Conservation
Similarly, there has been a significant
reduction in the usage of water in the
Company’s operations. As shown in
Charts K and L, water consumption
has come down significantly for both
smelting and mining operations.
Wind Energy
Most of the power generated in India is
produced by thermal power plants that
are fuelled by the large coal reserves
in the country. We run our captive
power plants to meet the requirements
of our mining and smelting operations.
Our power plants operate at the
optimal capacity compared to the
standard power utility plants leading
to more efficient power generation.
In the previous financial year we

reported the commissioning of 38.4
MW wind energy in Gujarat, and this
year we added another 68.8 MW wind
energy capacity making a total installed
capacity of 107.2 MW as on 31 March
2008. Further to this we shall add
another 17 MW of wind energy which
is progressing as per schedule.

continued
Corporate Social Responsibility (CSR) orthopaedics, skin, eye care, area of education through various
is an integral part of Hindustan Zinc’s paediatrics and gynaecology. initiatives like:
business philosophy. Its centrality has Approximately 6,300 people were — 30 child welfare centres are being
led the Company to undertake several benefited through these medical run in joint collaboration with the
projects aimed at achieving sustainable camps. Sterlite Foundation for 1,200
socio-economic development of the — All 173 Operational Villages in the children aged between 2½ and 5
villages in the vicinity of its plants neighbourhood of mines and years. All these children have
and mines. smelters of the Company were been immunised.
targeted for the National Pulse — LEAD (Literacy for Empowerment
Our approach towards sustainability Polio drive, resulting in 75% and Development), a programme on
is to generate and establish socio- coverage. This was done in literacy, was launched in five
economic wealth and creating collaboration with District Health villages of Chittorgarh, targeting
opportunities of entrepreneurship, Department and Primary Health the age group of 18 and above.
employment, and self-sustained Centres (PHCs). Within a year, these villages will be
businesses for the local community — More than 200 family planning declared 100% literate.
in which we operate. More importantly operations were conducted. In — During the year we undertook the
we see ourselves as a major facilitator addition, vasectomy camps were Bal Chetna Anganwadi Project
in their socio-economic development. conducted in collaboration with covering 16,000 children in the age
District Administration of Bhilwara, group 3–6 years in 400 anganwadi
Through our various initiatives which benefited 700 people. centres spread across four districts
and a team of 150 qualified CSR — An ambulance has been provided of Rajasthan.
professionals, specialists and field- to Help Age India for conducting — Computer education programmes
workers, we are positively impacting rural medical camps in the have been initiated in 200 schools
the lives of 54,209 families across remote villages. and 50 Literacy Centres at Udaipur,
173 operational villages in the — Reproductive Tract Infection and Rajsamand, Bhilwara and
neighbourhood of its mines and plants. Sexually Transmitted Infection Chittorgarh Districts in
cases have gone down from collaboration with the District
Health and Hygiene 18% to 6%. Education Department. A total of
The health of our local communities — Supplying potable water in 1,000 computers have been
where we are based is an important 27 villages around Debari, installed. The project benefits some
aspect of all of our activities, some of Visakhapatnam, Rajpura 48,000 students from Class 6 to 12.
the projects undertaken during the year Dariba and Rampura Agucha. — Under the Mid-Day Meal Scheme,
on health and hygiene of the local Approximately 500,000 litres of the centralised kitchens in
communities are: water per day is being supplied to Chittorgarh, Udaipur and Bhilwara
— Over 56,000 villagers have benefited nearby localities of Chittorgarh districts are now reaching out to
through general rural medical from the Chanderiya unit. more than 200,000 children.
camps and specialised medical — 161 students were awarded
camps such as Child Health Camps, Education scholarships under the Academic
Pulse Polio Camps, Eye Care We have developed a systematic Excellence and Talent Promotion
Camps and Family Planning Camps. structure to address and manage programme in Udaipur and
— Three super-specialised camps our responsibilities within the local Chittorgarh district.
were organised in Chittorgarh and communities where we operate. — Evening coaching classes are
Udaipur districts, which focused on Special attention is also given to the operational for 900 students from

sustainability
Class 10 and 12.

— Representing local talent at the
international forums. Ms. Mala
Sukhwal was sponsored by
Hindustan Zinc to participate in
the Commonwealth Lifting
Championship held at New Zealand
and she returned to India with Four
Gold medals and one silver medal.
Sustainable Livelihood
Our approach to our local communities
and their development is holistic
and robust and takes into account
the remoteness of our locations.
We intend to be a benchmark in
addressing the real needs of our local
communities through the application of
sustainable initiatives for their long
term inclusive growth. Few of the
inspiring initiatives were:
— 850 village youth were trained in
various livelihood skills like retail,
tailoring, fitter, electrical equipment,
bandhej, block printing, home — Veterinary camps were organised engagement process, coupled with
appliances and pumps set repairs. over for over 60,000 cattle. base line study and need assessment
— Entrepreneurial training was — Drip irrigation and sprinklers were helps us develop and shape our
imparted to 220 young people installed in 12 villages, benefiting programmes for a three to five year
from the operational villages of 120 farmers. Micro irrigation period for select villages.
around Debari. practices were promoted among 50
— 157 Self Help Groups (SHGs), 1,791 farmers, which resulted in a 45% The module is intensive and long term.
members have a cumulative fund reduction of water use over 200 We apply the single principle of
base surpassing Rs.720,000. Of acres of land. partnership between all our
these, 37 SHGs have been linked — More than 2,600 acres of land were stakeholders including the
to micro enterprise. brought under irrigation and multi- communities in which we operate,
— 5,900 farmers were imparted crop cultivation. NGO’s local and state government.
training in soil, seed, water
management and vermiculture for Model Village Development Hindustan Zinc identified 59 villages
better yield. 150 vermi compost Our approach to community lacking in basic amenities for
units were established by some of development is holistic, robust, transforming them into Model Villages.
these farmers. integrated, intensive, long term and This project will be accomplished over
— Certified seeds were distributed to sustainable, given the remoteness a period of three to four years in three
450 farmers in 41 villages. of our locations. Our stakeholder phases, through active participation of

Providing
Sustainable
Solutions
Woman’s self help group
sustainability
The Godwa village in Rajasthan lacked to our transformation. It has taken

basic amenities like electricity, us three to four years to evolve as an
primary school, road etc since empowered village unit. The electricity
independence. The first challenge was connectivity for 94 of our households
to mobilise people to come together to was ensured through involvement of
address the challenge. The work then each household including voluntary
expanded to form village institutions to contribution for the same. The time is
take the process forward. ‘The most set for significant enhancement in the
important was ensuring access to quality of our life.’ remarked Ganesh
services rather than being a service Dangi, village leader Godwa.
provider and we were motivated to be
self sustainable from the beginning’ The finiteness of the efforts was
remarked the SHG group leader. validated by Operational Research
Group, New Delhi who evaluated this
‘Definitely, road and electricity are village as part of our social audit to the
basic amenities. HZL’s contribution and entire 32 Model Village Development
the village collectiveness was the key Programme.

continued
all the stakeholders. During 2007-08, to our transformation. It has taken us Corporate
32 villages were successfully declared three to four years to evolve as an — Golden Peacock Award for
as Model Villages. The social audit of empowered village unit. The electricity Excellence in Corporate
these villages has already been connectivity for 94 of our households Governance, 2007.
conducted by Operations Research was ensured through involvement of — Dun & Bradstreet – American
Group, New Delhi. each household including a voluntary Express Corporate Award 2007 for
contribution for the same. The time is being the Top Indian Company in
The Godwa set for significant enhancement in the the Non-Ferrous Metals Sector.
The Godwa village near Debari in quality of our life.’ remarked Ganesh
Rajasthan lacked basic amenities Dangi, village leader Godwa. Environment/Industrial Activity/
like electricity, primary school, road Operational Efficiencies
etc since independence. The first The finiteness of the efforts was — Water Efficient Unit Award to
challenge was to mobilise people validated by Operational Research Chanderiya Smelter Complex by
to come together to address the Group, New Delhi who evaluated this Confederation of Indian Industry-
challenge. The work then expanded village as part of our social audit to the GBC, Hyderabad.
to form village institutions to take the entire 32 Model Village Development — TERI Corporate Environmental
process forward. Four self help groups Programme. The impact of SHG and Award 2007.
with 52 members and a cumulative organic farming initiatives were — Asian Power Plant of the Year
fund of Rs. 60,000/-, vocational appreciated. Apart from this, the village Award 2007 & Best Emission
training for rural youths by SANKALP, autonomy and empowered institutions Reduction Project in Asia by Asian
development of 10 organic farming were the value addition to the desired Power, Singapore.
demonstration sites, fruit plantation results. The significant improvement — Greentech Environmental
in six acres through 24 farmers’ in nutrition level of preschool children Excellence Golden Award to
collective, resource mobilisation through child welfare centre was also Chanderiya Smelter Complex and
from district administration for established. Such results are Rampura Agucha Mine.
construction of 3 km road connecting welcoming and would facilitate the — Greentech Environmental
to local market hub, facilitating primary process of graduation remarked the Excellence Silver Award to Debari
school, child welfare centre for 40 CSR team of the Debari Zinc Smelter. Zinc Smelter and Vizag Zinc
preschool children, facilitating the Smelter.
establishment of primary school Awards and Recognition — Excellence in All Round
ensured sustainability. ‘The most The Company has received several Performance in Industrial Activity
important was ensuring access to awards in 2007-08, both at an overall to Vizag Zinc Smelter by Federation
services rather than being a service corporate level as well as for its of Andhra Pradesh Chambers of
provider and we were motivated to be individual operating units. However our Commerce & Industry.
self sustainable from the beginning’ efforts towards being a responsible — Institute of Cost & Works
remarked the SHG group leader. corporate through various sustainable Accountants of India Award for
development initiatives were Excellence in Cost Management for
‘Definitely, road and electricity are recognised at the local, national and 2006-07.
basic amenities. HZL’s contribution and international levels. Some of these are
the village collectiveness was the key given below.

sustainability
Safety
— Golden Peacock Award for
Occupational Health and Safety
for 2007, for the Chanderiya
Smelter Complex.
— International Safety Award 2006
from British Safety Council, UK,
for the Debari Zinc Smelter.
— Safety Gold Award 2007 from
Royal Society for Prevention of
Accidents (UK), for the Debari
Zinc Smelter.
— Meritorious Achievement in NSCI
Awards 2006 by National Safety
Council of India, for the Debari
Zinc Smelter.
— Safety Innovation Award by
Institution of Engineers, Delhi, for
the Chanderiya Smelter Complex
and the Debari Zinc Smelter.
CSR
— Golden Peacock award for
Corporate Social Responsibility,
2007.
— TERI Corporate Social
Responsibility Award 2007.
— Reader’s Digest Pegasus Corporate
Social Responsibility Award 2007.
— State Population Stabilisation
Award 2007, Chanderiya
Smelter Complex.
— State Level Bhamashah Award
2007: Chanderiya Smelter Complex
and the Debari Zinc Smelter.

BOARD OF DIRECTORS
1 2 3 4 5
1. Mr. Agnivesh Agarwal is the Engineering College, Jodhpur and is 6. Mr. Abhay Kumar Singh is
Chairman of Hindustan Zinc Limited and an MBA from the Indian Institute of Director and was appointed to the
was appointed to the Board with effect Management, Ahmedabad. Board with effect from 28 November
from 15 November 2005. Mr. Agarwal 2007. Mr. Singh is an IFS (Indian Forest
has an extensive experience in managing 3. Ms. Ajita Bajpai Pande is Service) Officer and presently holds
large projects, He is also the director of Director and was appointed on the the post of Director in the Ministry
MALCO, Sterlite Iron and Steel Company Board with effect from 24 October of Mines, New Delhi. He is also
Ltd, Sterlite Infrastructure Pvt. Ltd, 2005. Ms Pande is an IAS (Indian the director of Bharat Gold Mines
Agarwal Galvanizing Pvt. Ltd, and Administrative Service) Officer and is and BALCO.
Sterlite Infrastructure Holdings Pvt. presently holding the post of Joint
Ltd. Mr. Agarwal has completed his Secretary, Ministry of Mines, New 7. Mr. Anil Agarwal is the Chairman
graduation in commerce from Sydhenam Delhi. She is also the Director of of Vedanta Resources Plc and was
College, Mumbai. Hindustan Copper Ltd and BALCO. appointed to the Board with effect from
11 April 2002. Mr Agarwal, who founded
2. Mr. Mahendra Singh Mehta is 4. Mr. Sanjiv Kumar Mittal is the Group in 1976, is also Chairman of
Chief Executive Officer & Whole Time Director and was appointed on the Sterlite and is a Director of BALCO, and
Director and was appointed to the Board with effect from 28 March 2007. Vedanta Aluminium Ltd. Since 1976 the
Board with effect from 15 November Mr Mittal is an IAS (Indian Group has grown under his leadership,
2005. Mr. Mehta joined Sterlite Administrative Service) officer and is vision and strategy. Mr Agarwal has
Industries India Limited in 2000, prior presently holding the post of Joint over 30 years’ experience as an
to taking up the position as CEO of HZL, secretary and Financial Advisor, industrialist.
he was the Commercial Director (Base Government of India, Ministry of Mines,
Metals) responsible for the marketing New Delhi. He is also director of 8. Mr. Navin Agarwal is Director
of copper, aluminum, zinc and lead, BALCO, Hindustan Copper Ltd, Singrari and was appointed to the Board with
procurement of copper concentrate, Collieries Company Ltd and Coal Mine effect from 11 April 2002. Mr Agarwal
export and tolling of zinc concentrate Planning & Design Institute. is also Executive Vice-Chairman and
and coal procurement. Before joining Director of Sterlite, Chairman of KCM
the Group, Mr. Mehta was with Lloyds 5. Mr. Nand Kishore Shukla is and MALCO and a Director of each of
Steel Industries Ltd, where he handled Director and was appointed on the BALCO and MALCO He joined Sterlite
wide ranging portfolios; marketing, Board with effect from 11 April 2002. at its inception and the Board of
procurement, working capital finance Mr Shukla is an IRS (Indian Revenue Vedanta in November 2004.
and projects. Service) Officer and is presently holding
the post of Director General of Income Mr Agarwal is the Chairman of the
Mr. Mehta has a Mechanical Tax (Legal and Research), New Delhi. Executive Committee of Vedanta. In this
Engineering degree from MBM capacity, he is responsible for overall

governance
6 7 8 9 10
delivery of the Group’s strategy, CMT and has held various positions in
including the overall development of operations and business management
the new green and brown field projects, for 18 years at ABB India.
in organic growth opportunities
including joint ventures and alliances, Mr Kaura was a member of the board
the strategic treasury and fund raising of directors of ABB India from 1996 and
initiatives and global investor relations, was the Managing Director and Country
as well as augmenting and managing Manager of ABB from 1998 to 2001.
the top talent of the Group. Mr. Kaura has a Bachelor’s degree
in Mechanical Engineering (Honours)
Mr Agarwal has also been instrumental from the Birla Institute of Technology
in globalising Vedanta’s business. He & Sciences in Pilani and Executive
was actively involved in the internal education at London Business School
growth and expansion of the Group’s and IFL, Sweden
business in Australia and Zambia. He
actively led Vedanta’s successful listing 10. Mr. Tarun Jain is Director and
on the London Stock Exchange in 2003. was appointed to the Board with effect
Mr Agarwal has over 20 years’ from 11 April 2002. He is also a director
experience in strategic management. of SIIL, BALCO, Vedanta Aluminium,
SOVL, Twin Star, MALCO, Westglobe
He received a degree in Commerce Limited and Sterlite Shipping Ventures
from Sydenham College, Mumbai, India Private Limited. He has over 24 years
and has participated in the Owner/ of experience in corporate finance,
President Management Programme accounts, audit, taxation and
at Harvard University, USA. secretarial practice. He is responsible
for our strategic financial matters
9. Mr. Kuldip K. Kaura is Director including finance and accounting,
and was appointed on the Board with legal and regulatory compliance
effect from 11 April 2002. Mr Kaura is and risk management.
also Managing Director of Sterlite and
Deputy Chairman of KCM. Mr Kaura, Mr. Jain is a member of the Institute
who joined Sterlite in 2002, was of Cost and Works Accountants of India
Managing Director of HZL and became and a Fellow Member of the Institute
the Chief Operating Officer of Vedanta of Chartered Accountants of India and
Resources plc at its inception. He is also the Institute of Company Secretaries
a director of Vedanta Aluminium and of India.

Corporate Information
Board of Directors Registered Office

Shri Agnivesh Agarwal : Chairman Yashad Bhawan
Udaipur – 313 004
Smt Ajita Bajpai Pande : Director
Shri S. K. Mittal : Director Bankers

State Bank of Bikaner & Jaipur
Shri N. K. Shukla : Director
IDBI Bank Limited
Shri A. K. Singh : Director
ICICI Bank Limited
Shri Anil Agarwal : Director
Axis Bank
Shri Navin Agarwal : Director
Calyon Bank
Shri K. K. Kaura : Director
Development Bank of Singapore
Shri Tarun Jain : Director
Shri M. S. Mehta : CEO & Whole-time Director statutory Auditors

M/s. Deloitte Haskins & Sells (Auditors)
Chartered Accountants
Chief Financial Officer 12, Dr. Annie Besant Road
Shri S. L. Bajaj Opp. Shiv Sagar Estate, Worli
Mumbai – 400 018
Company Secretary
Shri Rajendra Pandwal

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DIRECTORS’ REPORT
Dear Members,
The directors have pleasure in presenting the 42nd Annual Report together with the statement of audited accounts for the
financial year ended 31 March 2008.
FINANCIAL RESULTS AND DIVIDEND
(Rs. crore) 2007-08 2006-07
Total revenue 8729.40 8791.49

Profit before depreciation, interest, tax and amortisation 6231.55 6638.69
Less: Interest 24.17 28.44
Gross Profit 6207.38 6610.25
Less: Depreciation and amortisation 222.04 156.59
Taxation 1589.27 2011.85
Net profit for the year 4396.07 4441.81
Add: balance brought forward from the previous year 970.50 122.72
Amount available for appropriation 5366.57 4564.53
Appropriation:
General Reserve 500 3350
a) Interim Dividend on equity shares (including corporate tax thereon) 123.58 120.45
b) Proposed final dividend on equity shares (including corporate tax thereon) 123.58 123.58
Balance carried forward to next year 4619.41 970.50
DIVIDEND
The Company paid an interim dividend of 25 per cent for the year 2007-08. Subsequently, the Board of your Company has
recommended a final dividend of 25 per cent taking the total dividend to 50 per cent, i.e. Rs.5 per equity share of face value
Rs.10 each. The total outgo on account of dividend including tax on dividend will be Rs.247 crore during 2007-08 as compared
to Rs. 244 crore during the previous year. The record date for the payment of final dividend will be 13 August 2008.
PERFORMANCE REVIEW
During the year the global market for zinc remained subdued. The appreciation of the rupee also created further
pressures on realisations. However, the Company maintained its streak of volume growth at the back of higher output
from mines and smelters and new capacity coming on stream. The Company produced a total refined zinc metal
production in FY 2008 of 426,323 tonnes, up by 22.4% compared with 348,316 tonnes in FY 2007. The production of lead
during FY 2008 was 58,247 tonnes compared with FY 2007 production of 44,552 tonnes, an increase of 30.7%. The
increase was primarily due to production from the Ausmelt plant which is now stabilised.
Exploration
Ongoing exploration activities have yielded significant success with an increase of 28.7 million tonnes to its reserves and
resources, prior to a depletion of 5.8 million tonnes in FY 2008. Contained zinc-lead metal has increased by 4.0 million
tonnes, prior to a depletion of 0.6 million tonnes during the same period. Total reserves and resources at 31 March 2008
were 232.3 million tonnes containing 27.5 million tonnes of zinc-lead metal. The reserves and resources position has
been independently reviewed and certified as per JORC standard.
Sales
Sales of zinc and zinc concentrate (metal in concentrate) increased by 13% from 482,172 tonnes in 2006-07 to 544,660
tonnes in 2007-08 and sales of lead and lead concentrate (metal in concentrate) increased by 30% from 73,267 tonnes in
2006-07 to 95,278 tonnes in 2007-08.
Despite of a 22.4% increase in saleable zinc and 30.7% increase in saleable lead production volumes and stable operating
costs, PBDIT in 2007-08 was lower at Rs 6,231 crores compared with 2006-07 primarily due to the significant reduction in
LME zinc prices by about 17% and the appreciation of the Indian rupee against the US dollar by more than 11%.

DIRECTORS’ REPORT continued
As a result of poor realisations of zinc, net sales fell by To support the increased smelting capacities, your
8 per cent from Rs. 8,560 crore in 2006-07 to Rs. 7,878 Company will expand its ore production capacity at the
crore in 2007-08. However, the Company was able to Rampura Agucha mine from 5 mtpa to 6 mtpa. Ore
contain the impact of poor market for zinc and high energy production at the Sindesar Khurd mine will be increased
prices by a combination of increased production volumes, from 0.3 mtpa to 1.5 mtpa. The company also plans to start
improvements in operational efficiencies and high by- mining activity at the Kayar mine which will have a
product credit realisations. Net profit came down only production capacity of 0.3 mtpa.
marginally from Rs. 4,442 crore in 2006-07 to Rs. 4,396
crore 2007-08. CONTRIBUTION TO THE EXCHEQUER
Your Company has contributed Rs.2,972 crore in terms of
Your Company continues to remain a debt free Company. taxes and duties to the exchequer.
The Company’s financial performance has been discussed
in detail in the chapter on Management Discussion and DIRECTORS
Analysis which forms a part of this Annual Report. Mr. A.C. Wadhawan ceased to be a director with effect from
19 December 2007. The Board of Directors records its
Projects appreciation of the valuable guidance and contribution
During the year, your Company successfully completed made by him as Chairman of the Audit Committee and
several projects ahead of schedule and within budget. as a member of the Board.
These include commissioning of 170,000 tonnes per annum
Hydro II zinc smelter and 80 megawatts (MW) captive Mr. A.K. Singh, Director, Ministry of Mines has been
thermal power plant at Chanderiya; wind power project of nominated as a director on the Board of the Company with
50.4 MW in Gujarat and 18.4 MW in Karnataka. In the first effect from 28 November 2007 by the Government of India.
quarter of FY 2009, your Company concluded the expansion
of Rampura Agucha Mine from 3.75 mtpa to 5.00 mtpa, Mrs. Ajita Bajpai Pande, Mr. Agnivesh Agarwal and Mr.
88,000 tpa of zinc debottlenecking at Chanderiya and Tarun Jain retire by rotation and, being eligible, offer
Debari along with the commissioning of new roaster at themselves for reappointment at the ensuing Annual
Debari two months ahead of schedule, increasing our total General Meeting. None of the retiring directors hold
metal production capacity to 754,000 tpa. any share in the Company. Your directors recommend
their reappointment.
In line with achieving our stated production capacity goal of
1 million tonnes per annum and supported by our strong MANAGEMENT DISCUSSION AND ANALYSIS
reserves and resources position as discussed earlier, we The Management Discussion and Analysis Report, which
recently announced expansion projects at HZL that will gives a detailed account of operations of your Company and
take our total integrated zinc-lead capacity to 1,065,000 the market in which it operates, including initiative taken
tonnes per annum with fully integrated mining and captive by the Company to further its business and in areas such
power generation capacities, thereby making it the world’s as human resources, information technology and risk
largest integrated zinc-lead producer by 2010. Two management, forms a part of this Annual Report.
brownfield smelter projects, which will increase the
production capacities of zinc and lead by 210,000 tpa and CORPORATE GOVERNANCE
100,000 tpa respectively, along with 2x80 MW captive A Report on Corporate Governance along with a certificate
power plant will be undertaken at Rajpura Dariba in from the auditors of the Company regarding the
Rajasthan, India. compliance of conditions of corporate governance as
stipulated under Clause 49 of the Listing Agreement is
We also expect to increase our silver production from the annexed to this report.
current levels of nearly 2.8 million ounces per year to a
level of approximately over 16.1 million ounces per year.

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GROUP DIRECTORS’ RESPONSIBILITY STATEMENT

The Agarwal Group, being a group defined under the As required under Section 217 (2AA) of the Companies Act,
Monopolies and Restrictive Trade Practices Act, 1969, 1956, the Directors hereby confirm that:
controls the Company. A list of its Group entities is
given below: i. In the preparation of Annual Accounts, applicable
accounting standards have been followed along with
Sr. No Name of Group Companies proper explanation relating to material departures, if
1. Volcan Investments Limited, Bahamas any
2. Vedanta Resources Plc, United Kingdom ii. the directors have selected such accounting policies
3. Vedanta Finance Jersey Limited, Jersey and applied them consistently and made judgements
4. Vedanta Resources Holdings Limited, United Kingdom and estimates that are reasonable and prudent so as to
5. Twinstar Holdings Limited, Mauritius give a true and fair view of the state of affairs of the
6. Welter Trading Limited, Cyprus Company at the end of the financial year on 31 March
7. Vedanta Resources Finance Limited, United Kingdom 2008 and of the profit of the Company for that year;
8. Vedanta Resources Cyprus Limited, Cyprus iii. the directors have taken proper and sufficient care for
9. Richter Holding Limited, Cyprus the maintenance of adequate accounting records in
10. Westglobe Limited, Mauritius accordance with the provisions of the Act for
11. Finsider International Company Limited, United Kingdom safeguarding the assets of the Company and, for
12. Sesa Goa Limited, India detecting and preventing fraud and other irregularities;
13. Sesa Industries Limited, India and
14. Konkola Copper Mines Plc, Zambia iv. the directors have prepared the Annual Accounts, on a
15. Vedanta Aluminium Limited, India “Going Concern” basis.
16. Sterlite Industries (India) Limited, India
17. Sterlite Paper Limited, India AUDITORS
18. Sterlite Opportunities and Ventures Limited, India Your Company had appointed M/s. Deloitte Haskins & Sells,
19. The Madras Aluminium Company Limited, India Chartered Accountants, as statutory auditors of the
20. Bharat Aluminium Company Limited, India Company for the conduct of audit of accounts for the year
21. THL KCM Limited, Mauritius ended 31 March 2008. Their term of appointment expires at
22. KCM THL Limited, Mauritius the conclusion of the forthcoming Annual General Meeting
23. Vedanta Resources Investments Limited, (AGM), and being eligible, they offer themselves for
United Kingdom reappointment. Your Directors propose their reappointment.
24. THL Aluminum Limited, Mauritius
25. Monte Cello BV, Netherlands AUDITORS’ QUALIFICATION ON ACCOUNTS
26. Sterlite Energy Limited, India Notes to the accounts, as referred to in the Auditors’
27. Copper Mines of Tasmania Pty Ltd, Australia Report are self-explanatory and a practise consistently
28. Fujairah Gold FZE, UAE followed, and therefore do not call for any further
29. Thalanga Copper Mines Pty Ltd., Australia comments and explanations.
30. Monte Cello NV, Netherlands Antilles
31. Anil Agarwal Discretionary Trust, Bahamas PARTICULARS OF TECHNOLOGY ABSORPTION AND FOREIGN
32. Onclave PTC Limited, Bahamas EXCHANGE EARNINGS AND OUTGO
33. Mr. Anil Agarwal As required under Section 217 (1) (e) of the Companies Act,
1956 and rules made therein, the particulars of technology
absorption and foreign exchange earnings and outgo are
given in Annexure I, which is attached and forms a part of
this report.

DIRECTORS’ REPORT continued
PARTICULARS OF EMPLOYEES
As required by the provisions of Sub-Section (2A) of
Section 217 of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 as
amended, particulars of the employees are set out in the
Annexure to the Directors’ Report. However, as per
provisions of Section 219 (1)(b)(iv) of the Companies Act,
1956 the report and the accounts are being sent to all the
shareholders excluding the aforesaid information. Any
shareholder, interested in obtaining such particulars may
write to the Company Secretary at the registered office of
the Company for a copy of the same.
ACKNOWLEDGEMENTS
The Board of Directors places on record its sincere
appreciation of the contribution made by the employees,
and employee unions in the success of the Company. The
directors also sincerely thank the Central Government and
The State Governments of Rajasthan, Andhra Pradesh,
Jharkhand, Gujarat and Karnataka, also bankers, auditors,
vendors, customers and the shareholders of the Company
for their continued support.
For and on behalf of the Board of Directors
K.K. Kaura M.S. Mehta

Director CEO and whole time Director
Date: 12 May 2008

Place: Mumbai

governance
Annexure 1
Particulars of technology absorption and foreign exchange earnings
and outgo as per Section 217 (1) (e) of the Companies Act, 1956 and the rules
made therein and forming part of the Directors’ Report for the year ended
31 March 2008
A) Conservation of Energy b) Benefits derived as result of above R&D
— Use of polyelectrolyte in place of alum to treat water. 1. Improvements in metal recovery.
— Installation of new electronic controller in Hot Gas 2. Reduction in milling cost by saving in energy
Percipitator (HGP) to improve the HGP efficiency. consumption.
— Use of high pressure steam and waste heat to generate 3. Recovery of byproducts like Cadmium, Lead and Silver.
power. 4. Optimization of plant operations.
— Use of furnace oil in place of LDO for boiler operation. 5. Improved price realization from by-products.
— Use of planetary gear box for leaching reactors to 6. Reduced water consumption.
save power.
— Use of hydrofoil agitators for leaching reactors. c) Future plan on R&D
— Use of variable frequency drive where load fluctuations 1. Improvements of metal recovery in mines
are significant. and smelters.
— Use of self-propelled turbine ventilators in cell house. 2. Production and usage of bulk concentrates from
— Modification of the boiler design was done at CPP to RD mines.
recover more heat in the economiser zone. 3. Reduce energy consumption.
— Modification of control system of turbines was done 4. Recovery of metal from residues.
at CPP for maximisation of steam pressures in turn 5. Mineralogical studies for improved milling operation.
power generation. 6. Beneficial use of residual wastes.
— Installation of Supersonic Soot Blowers in Economiser 7. Recovery of Zinc from Tailings.
for better cleanliness and heat utilisation.
— Installation of online temperature controllers in closed C) Foreign Exchange Earnings and Outgo
loop with cooling tower fans. During the year, foreign exchange outgo was Rs. 436 crore
(which includes import of capital goods, stores and spares,
B) Technology absorption know how, supervision charges and trading material) while
a) Specific areas in which R & D carried out by the foreign exchange earned was Rs. 2,257 crore. The
the company details have been given under item nos 20 to 22 of
1. Studies on reduction of misplacement of Lead and Zinc Schedule 18 annexed to the accounts.
in concentrates.
2. Mineralogical studies for feed, concentrates and
tailings to enhance recovery.
3. Modelling and simulation studies of RDM grinding
circuit.
4. Recovery of Cadmium from HGP dust.
5. Implementation of flow-sheets for Lead Silver cake
production in leaching plants.
6. Water consumption reduction by utilising waste water
with treatment in gas cleaning towers.

Form ‘A’
Form for disclosure of particulars with respect to Conservation of Energy
Year ended Year ended

Particulars Unit 31/3/2008 31/3/2007
A) Electricity, Power Generation and Fuel consumption

Purchase units Million kWh 503 355
Total amount Rs. Cr 191.76 133.32
Average rate of purchasing Rs/kWh 3.82 3.75
CPP – Units generated from fuel oil
Own generation units (from fuel oil) Million kWh 155 154
Quantity consumed
LSHS/FO MT 34747 33851
HSD KL 473 642
Average cost of fuel per kg Rs./kg 21.05 17.21
Average cost of generation Rs/kWh 4.77 4.14
Unit generated per unit of fuel (LSHS/FO/HSD) kwh/kg 4.42 4.49
CPP – units generated from coal
Own generation units (from coal) Million kWh 1290.38 1138.29
Quantity consumed
Coal MT 630265 534214
LDO KL 902 494
Average cost per kg (coal) Rs./kg 4.36 3.58
Average cost per kg (LDO) Rs./kg 29.93 27.48
Average cost of generation Rs/kWh 2.28 1.82
Unit generated per unit of fuel (coal) kWh/kg 2.20 2.28
B) Fuel consumption for Metal Production
a) LPG/propane
Quantity Million kg 7.67 7.71
Average cost per Kg Rs./kg 34.77 30.88
b) LDO/LSHS/FO
Quantity KL 17897 19222
Average cost per litre Rs./Ltr 23.68 21.51
c) Met Coke and Coke breeze
Quantity MT 123500 107213
Total amount Rs. million 1198.67 1022.34
Average cost per MT Rs./MT 9705.90 9535.61

governance
CERTIFICATE OF COMPLIANCE WITH THE CODE

OF CONDUCT POLICY
As provided under clause 49 of the listing agreement with the Bombay Stock Exchange Limited and the National Stock
Exchange Limited, the Board members and the senior management personnel have confirmed compliance with the code
of conduct and ethics for the year ended on March 31 2008.
For Hindustan Zinc Limited
M.S. Mehta
CEO and whole time Director
Date: 12 May 2008

Place: Mumbai
SECRETARIAL COMPLIANCE REPORT
To The Members of Hindustan Zinc Limited 4. Conducted the Board/Committee Meetings and Annual
We have examined all relevant records of the Company General Meeting as per the requirement of the Act.
relating to its compliance with the provisions of Companies
Act, 1956 and rules, regulations framed thereunder. 5. Complied with all the requirements relating to the
minutes of the proceedings of the meeting of the
It is the responsibility of the Company to prepare and Directors/Committee and the Shareholders.
maintain the relevant necessary records under the
aforesaid Acts, Rules, Regulations framed thereunder. 6. The Company closed its Register of Members from
Our responsibility is to carry out an examination, on the 14 September 2007 to 20 September 2007 (both days
basis of our professional judgement, so as to provide inclusive) during the financial year.
a reasonable assurance of the correctness and
completeness of the records for the purpose of report. 7. The Board of Directors of the Company is duly
constituted. The appointment of directors has been
We have obtained all the information and explanations made in accordance with the provisions of the Act.
which to the best of our knowledge and belief were
necessary for the purpose of report and have been 8. The Company had constituted the Audit Committee as
provided with such records, documents etc. as required required under section 292A of the Act.
by us.
9. Paid dividend to the shareholders within the time limit
We report that for the financial year ended on 31 March prescribed and has also transferred the unpaid
2008, the Company has complied with the provisions of dividends to the Central Government within the time
Companies Act, 1956 and Rules, Regulations framed limit from time to time.
thereunder, as given hereunder:
10. Made due disclosure required under the Act.
1. Maintained all the statutory registers required under
the Companies Act,1956 (‘the Act’) and the Rules made For V.M. & Associates
thereunder. Company Secretaries
2. Filed all the forms and returns and furnished all the Manoj MaheshwarI
necessary particulars to the Registrar of Companies, Partner
Rajasthan, as required by the Act. Fcs: 3355 C P No.: 1971
3. Issued all notices required to be given for convening of Date: 24 April 2008
Board/Committee Meetings and General Meeting, Place: Jaipur
within the time limit prescribed by law.
CORPORATE GOVERNANCE REPORT
Hindustan Zinc remains resolute in its commitment to Board of Directors

conduct business in accordance with the highest ethical Composition of the Board
standards and sound corporate governance practices. As on 31 March 2008 Hindustan Zinc’s Board comprised
The Company strongly believes that good corporate 10 directors, four of whom are nominee directors from
governance practises go a long way to achieve the the Government of India. According to the Shareholders’
objective of enhancing shareholder value and Agreement with the Government of India, which can
the interest of stakeholders. nominate five directors whereas the strategic partner and
promoters, Sterlite Opportunities and Ventures Limited
The Company has set up a three tier governance structure, can nominate six directors to the Board of the Company.
which helps it in strategic decision making, operations and The Chairman, and the Chief Executive Officer & Whole
project implementation: Time Director, are nominees of Sterlite Opportunities and
Ventures Limited. Apart from Mr. M.S. Mehta, who is the
(i) Strategic Supervision: Overall strategic supervision CEO and the only executive Director, all other directors are
and control is exercised by the Board of Directors in non-executive. The Board has five independent Directors.
laying down strategic goals, major expansion projects
and capital expenditure and business plans approvals The composition of the Board is in conformity with Clause
to ensure that the Company is progressing to fulfil 49, which stipulates that at least 50 per cent of the Board
shareholder aspirations. should consist of non-executive directors and in case the
Chairman is a non-executive director, at least one-third of
(ii) Operation Management and Control: Business the Board should be independent. HZL is also compliant
Management Group comprising of functional heads and with a recent circular by SEBI on 8 April 2008, which
unit/plant heads steered by CEO and CFO, handles the stipulates that at least 50 per cent of the Board should be
management and coordination with regular reviews independent if the Chairman is either a promoter or related
and meetings with the objective to seek continuous to the promoters or senior management as defined under
improvement in the Company’s working and to harness the Clause 49 of the listing agreement.
the potential.
No director is a member of more than 10 committees or
(iii) Plant/Unit Executive Management: comprising of acts as Chairman of more than five committees across
several strategic business units (SBUs) for an overall all companies in which they are directors. Note that
execution and empowered through decentralised directorships in foreign companies do not count towards
decision making. this limit.
In India, corporate governance standards for listed The non-executive directors are appointed or re-appointed
companies are regulated by the Securities and Exchange with the approval of the shareholders. All non-executive
Board of India (SEBI) through Clause 49 of the listing directors are liable to retire by rotation unless otherwise
agreement of the Stock Exchanges. Hindustan Zinc has approved by the shareholders. One third of the directors
adopted practices mandated in Clause 49 and has who are liable to retire by rotation retire every year and are
established procedures and systems to be fully eligible for re-appointment. According to the terms of the
compliant with it. Company’s Articles of Association, the strength of the
Board shall not be less than three and more than 12.
The Company’s efforts in corporate governance practises
have also been widely recognised. During 2007-08, the Number of Board Meetings
Company received the Golden Peacock award for The Board of Directors met five times during the year on
excellence in corporate governance 26 April 2007, 24 July 2007, 22 October 2007, 23 January
2008 and 13 March 2008. The maximum gap between
This chapter, along with the chapters on Management any two meetings was less than four months. The agenda
Discussion and Analysis, and Additional Shareholders for each meeting is prepared well in advance along with
Information, reports HZL’s compliance with Clause 49. explanatory notes wherever required and distributed
to all directors.

governance
Directors’ Attendance Record and Directorships Held

As mandated by Clause 49, none of the directors are members of more than 10 Board level committees nor are they
Chairman of more than five committees in which they are members. The composition of Board of the Directors as on
31 March 2008 is given in Table 1.
Table 1: Composition of the Board of Directors

No. of
outside No. of No. of
No. of No. of Whether directorships other Chairman-
meetings meetings attended of public Committee ships of
Name of Director Category held attended last AGM companies Memberships5 Committees5
Mr Agnivesh Agarwal, Chairman Non-Executive 5 2 No 2 – –

Mr M. S. Mehta, CEO6 Executive 5 5 Yes 1 – –
Mrs Ajita Bajpai Pande4 Independent 5 4 No 2 – –
Mr Sanjiv Kumar Mittal4 Independent 5 5 No 3 – 1
Mr A.K. Singh1,4 Independent 2 2 No 2 – –
Mr N. K. Shukla4 Independent 5 5 Yes – – –
Mr Anil Agarwal Non-Executive 5 0 No 113 – –
Mr Navin Agarwal Non-Executive 5 4 No 103 2 –
Mr Tarun Jain Independent 5 4 Yes 73 4 –
Mr K. K. Kaura Non-Executive 5 5 Yes 63 1 –
Mr A. C. Wadhawan2,4 Independent 3 3 Yes 5 1 4
Notes:
1 Appointed on 28 November 2007.
2 Ceased to be a Director with effect from 19 December 2007.
3 Includes foreign companies: five foreign companies for Mr. Anil Agarwal; two for Mr. Navin Agarwal; two for Mr. Tarun Jain and four for Mr. K.K. Kaura.
4 Nominees of Government of India.
5 Only Audit Committee and Shareholder Grievance Committee.
6 The only Executive Director.
Information Supplied to the Board

The Board has complete access to all information of the Company. The following information is regularly provided
to the Board as a part of the agenda papers well in advance of the Board meetings or is tabled in the course of the
Board meeting.
Annual operating plans and budgets and any update thereof

— Major capital budgets and any updates thereof.
— Quarterly results for the Company.
— Minutes of the meetings of the Audit Committee and other committees of the Board.
— Information on recruitment and remuneration of senior officers just below the level of Board, including the
appointment or removal of Chief Financial Officer and Company Secretary.
— Materially important show cause, demand, prosecution notices and penalty notices.
— Fatal or serious accidents, dangerous occurrences, any material effluent or pollution problems.
— Any material default in financial obligations to and by the Company, or substantial non-payment for goods sold by the
Company.
— Any issue, which involves possible public or product liability claims of substantial nature, including any judgement or
order which may have passed strictures on the conduct of the Company or taken an adverse view regarding another
enterprise that can have negative implications on the Company.
— Details of any joint venture or collaboration agreement.
— Transactions that involve substantial payment towards goodwill, brand equity or intellectual property.
— Significant labour problems and their proposed solutions. Any significant development in human resources/industrial
relations front like signing of wage agreement, implementation of voluntary retirement scheme, etc.
— Sale of material nature of investments, subsidiaries, assets, which is not in the normal course of business.
— Quarterly details of foreign exchange exposures and the steps taken by management to limit the risks of adverse
exchange rate movement, if material.

CORPORATE GOVERNANCE REPORT continued
— Non-compliance of any regulatory, statutory nature or listing requirements and shareholders service such as non-
payment of dividend, delay in share transfer, etc.
The Board periodically reviews compliance reports of all laws applicable to the Company.
Remuneration Paid to Directors

None of the non-executive directors draw any remuneration other than the sitting fee, which is approved by the Board. As
approved by the Board, the remuneration of Mr. M.S. Mehta, CEO and whole time director is reimbursed by the Company
to Sterlite Industries (India) Limited.
Table 2: Sitting Fees Paid to Directors for 2007-08 (Rs.)

Name of director Category Sitting fees1 Commission Total
Mr. Agnivesh Agarwal, Chairman Non-Executive 40,000 _ 40,000

Mr. M.S. Mehta, CEO Executive _ _ –
Mrs. Ajita Bajpai Pande Independent _ _ _
Mr. Sanjiv Kumar Mittal Independent _ _ _
Mr. A.K. Singh Independent _ _ _
Mr. N.K. Shukla Independent _ _ _
Mr. Anil Agarwal Non-Executive _ _ _
Mr. Navin Agarwal Non-Executive 80,000 _ 80,000
Mr. Tarun Jain Independent 140,000 _ 140,000
Mr. K.K. Kaura Non-Executive 160,000 _ 160,000
Mr. A.C. Wadhawan2 Independent 90,000 _ 90,000
1 Includes sitting fees for Board Meetings at (Rs.20,000 per meeting) and committee meetings (Rs.10,000 per meeting).
2 Ceased to be a director from 19 December 2007.
There are no pecuniary relationships or transactions of the non-executive directors vis-à-vis the Company except as
mentioned above. The Company has not granted any stock option to any of its directors.
During 2007-08, the Company did not advance any loans to any of its directors.
Code of Conduct
Hindustan Zinc’s Board has laid down a code of conduct for all Board members and senior management of the Company.
The code of conduct is available on the website of the Company: www.hzlindia.com. All Board members and senior
management personnel have affirmed compliance with the Code of Conduct. A declaration signed by the Chief Executive
Officer (CEO) to this effect is enclosed at the end of this report.
Risk Management
The Company has developed a very comprehensive risk management policy and the same is reviewed by the Audit
Committee, which in turn, informs the Board about the risk assessment and minimisation procedures adopted by the
management. Suggestions or guidance given by the Audit Committee members are immediately implemented. The
Company has unit wise risk register, which provides for root cause of the risk, and its mitigation procedure. The Unit
head periodically reviews the identified risks, and updates the control measures. At the corporate level major risks
are reviewed by the CEO and CFO and directions are issued accordingly.
Committees of the Board

The Company has two Board level committees – Audit Committee and Shareholders’/Investors’ Grievance Committee.
All decisions pertaining to the constitution of committees, appointment of members and fixing of terms of service for
committee members is taken by the Board of Directors. Details on the role and composition of these committees,
including the number of meetings held during the financial year and the related attendance, are provided below:

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a) Audit Committee
As on 31 March 2008, the Audit Committee comprises of four directors, the majority of which are independent.
They are Mr. N.K. Shukla, Mr. Sanjiv Kumar Mittal, Mr. K.K. Kaura and Mr. Tarun Jain. Mr. N.K. Shukla is the Chairman
of the Audit Committee.
The time gap between any two meetings was less than four months. The Committee met four times in the year under
review on 26 April 2007, 24 July 2007, 22 October 2007 and 23 January 2008. The details of the Audit Committee are
given in Table 3.
Table 3: Attendance record of Audit Committee

No. of No. of
meetings meetings Sitting
Name of the Member Position Status held attended fees (Rs.)
Mr. N.K. Shukla Chairman Independent 4 4 –

Mr. Sanjiv Kumar Mittal Member Independent 4 4 –
Mr. K. K. Kaura Member Non-Executive 4 4 40,000/-
Mr. Tarun Jain Member Independent 4 4 40,000/-
Mr. A.C. Wadhawan1 Chairman Independent 3 3 30,000/-
1 Ceased to be a director on 19 December 2007.
The Chief Executive Officer and whole time director, Chief Financial Officer, the head of internal audit and the
representative of the statutory auditors (M/s. Deloitte Haskins & Sells), internal auditors (M/s. Ernst & Young) are invitees
to the Audit Committee meetings. The Company Secretary, Mr. R. Pandwal is the Secretary to the Committee.
All the members of the Audit Committee possess financial and management expertise and accounting knowledge.
The quorum for the meeting of the committee is three members. The Chairman of the Audit Committee attended the
Annual General Meeting (AGM) held on 21 September 2007 to answer shareholder queries.
The functions of the Audit Committee of the Company include the following:
— Oversight of the Company’s financial reporting process and the disclosure of its financial information to ensure that
the financial statement is correct, sufficient and credible.
— Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the
statutory auditor and the fixation of audit fees.
— Approval of payment to statutory auditors for any other services rendered by the statutory auditors.
— Reviewing, with the management, the annual financial statements before submission to the Board for approval, with
particular reference to:
– Matters required to be included in the Director’s Responsibility Statement to be included in the Board’s report in
terms of clause (2AA) of section 217 of the Companies Act, 1956.
– Changes, if any, in accounting policies and practises and reasons for the same.
– Major accounting entries involving estimates based on the exercise of judgement by management.
– Significant adjustments made in the financial statements arising out of audit findings.
– Compliance with listing and other legal requirements relating to financial statements.
— Disclosure of any related party transactions.
— Qualifications in the draft audit report.
— Reviewing, with the management, the quarterly financial statements before submission to the Board for approval.
— Reviewing, with the management, performance of statutory and internal auditors, adequacy of the internal control
systems.
— Reviewing the adequacy of internal audit plan.
— Discussion with internal auditors on any significant findings and follow up there of.
— Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected
fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
— Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-
audit discussion to ascertain any area of concern.

— To look into the reasons for substantial defaults in the payment to the depositors, shareholders (in case of non-
payment of declared dividends) and creditors.
— Reviewing the functioning of the whistleblower mechanism.
— Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

The Audit Committee is empowered, pursuant to its terms of reference, to:
— Investigate any activity within its terms of reference and to seek any information it requires from any employee.
— Obtain legal or other independent professional advice and to secure the attendance of outsiders with relevant
experience and expertise, when considered necessary.
The Company has systems and procedures in place to ensure that the Audit Committee mandatorily reviews:
— Management discussion and analysis of financial condition and results of operations.
— Statement of significant related party transactions (as defined by the Audit Committee), submitted by management.
— Management letters/letters of internal control weaknesses issued by the statutory auditors.
— Internal audit reports relating to internal control weaknesses.
— The appointment, removal and terms of remuneration of the internal auditor.
In addition, the Audit Committee of the Company also reviews the financial statements.
The Audit Committee is also apprised on information with regard to related party transactions by being presented:
— A statement in summary form of transactions with related parties in the ordinary course of business.
— Details of material individual transactions with related parties which are not in the normal course of business.
— Details of material individual transactions with related parties or others, which are not on an arm’s length basis along
with management’s justification for the same.
b) Shareholders/Investor Grievance Committee

The Shareholders/Investors Grievance Committee consists of three members. The Committee met twice in the year
under review on 22 October 2007 and 23 January 2008.
The primary function of the Committee is to address investor complaints pertaining to transfers/transmission of shares,
non-receipt of the dividend and any other related matters. The minutes of each of the Committee Meetings are reviewed
by the Board. The attendance details are mentioned in Table 4 below.
Table 4: Attendance Record of Shareholders/Investors Grievance Committee

No. of No. of
meetings meetings Sitting fees
Name of the member Position Status held attended (Rs.)
Mrs. Ajita Bajpai Pande Chairman Independent 2 1 –

Mr. K.K. Kaura Member Non-Executive 2 2 20,000/-
Mr. Tarun Jain Member Independent 2 2 20,000/-
The matters, if any, requiring the Board’s attention are informed to the Board by the Committee Chairman.
Details of queries and grievances received and attended by the Company during the year 2007-08 is given in Table 5.

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Table 5: Nature of Complaints Received and Attended to During 2007-08

1. Number of complaints received from the investors comprising of Non-receipt of Dividend Warrants,
non-receipt of securities sent for transfer and transmission, complaints received from SEBI etc. 9
2. Number of complaints resolved. 9
3. Number of complaints not resolved to the satisfaction of the investors as at 31 March 2008. NIL
4. Complaints Pending as at 31 March 2008. NIL
5. Number of Share Transfers pending for approval as at 31st March 2008. NIL
The Board of Directors has delegated the power of approving physical transfer and transmission of shares to the
Company Secretary.
Management
Management Discussion and Analysis
The Annual Report has a detailed chapter on Management Discussion and Analysis.
Disclosures
Details of materially significant related party transaction i.e. transactions of the Company of material nature, with its
promoters, the directors or the management, their subsidiaries or relatives etc. are present under in Note in Schedule
No.18 to Annual Accounts of the Annual Report.
Related Party Transactions

There have been no materially significant related party transactions with the Company’s promoters, directors,
management or their relatives which have a potential conflict with the interests of the Company. Members may refer to
disclosures of transactions with related parties, i.e. promoters, directors, relatives, subsidiary or management made in
the Balance Sheet in Schedule No. 18 “Notes to Accounts at Note No. 12 (b) in compliance of Clause 32 of the Listing
Agreement and Accounting Standard 18.
Disclosure of Accounting Treatment in Preparation of Financial Statements

Hindustan Zinc has followed the guidelines of accounting standards laid down by the Institute of Chartered Accountants of
India (ICAI) in preparation of its financial statements.
Details of Non-Compliance by the Company

Hindustan Zinc has complied with all the requirements of regulatory authorities. No penalties/strictures were imposed on
the Company by stock exchanges or SEBI or any statutory authority on any matter related to capital market during the last
three years.
Code for Prevention of Insider Trading Practises

In compliance with the SEBI regulation on prevention of insider trading, the Company has instituted a comprehensive
code of conduct for its management and staff. The code lays down guidelines, which advises them on procedures to be
followed and disclosures to be made, while dealing with shares of the Company, and cautioning them of the consequences
of violations.
CEO/CFO Certification
The CEO and CFO certification of the financial statements for the year is enclosed at the end of the Report.

Directors
As per the law, two-thirds of the directors should retire by rotation. One-third of these directors are required to retire
every year and, if eligible, offer themselves for re-appointment. Mr. Tarun Jain, Mr. Agnivesh Agarwal and Mrs. Ajita
Bajpai Pande would retire this year and, being eligible, have offered themselves for re-appointment. A brief profile of all
three of them follows.
1. Mr. Tarun Jain

Mr. Tarun Jain is a fellow member of the Institute of Chartered Accountants of India, the Institute of Company Secretaries
of India and Institute of Cost and Works Accounts of India. He joined Sterlite Group in the year 1984 and has over 24 years
of experience in Corporate Finance, Accounts, Audit, Taxation and Secretarial Practice. He is also on the Board of the
following companies:
Name of the company/body corporate/firms Nature of Interest Committee/Chairman/Membership
1. Sterlite Opportunities and Ventures Limited Director –

2. The Bharat Aluminium Company Limited Director Member – Audit Committee
3. The Madras Aluminium Company Limited Director Member – Audit Committee
Member – Investor Grievance Committee
Member – Remuneration Committee
4. Westglobe Limited Director –
5. Twinstar Holdings Limited Director –
6. Sterlite Shipping Ventures Private Limited Director –
7. Vedanta Aluminium Limited Director Member – Audit Committee
8. Sterlite Industries (India) Limited Whole-time Director –
2. Mr. Agnivesh Agarwal

After completing school from Mayo College, Ajmer and graduating in commerce from Sydhenam College, Mumbai,
Mr. Agnivesh Agarwal has been associated with business operations and has experience in managing large projects.
He has a good knowledge of restructuring and strategy. He also has good commercial knowledge with hands-on
experience. He is also on the Board of the following companies:
Name of the company/body corporate/firms Nature of interest Committee/Chairman/Membership
1. The Madras Aluminium Company Limited Director –

2. Sterlite Iron and Steel Company Limited Director –
3. Agarwal Galvanising Pvt. Ltd. Director –
4. Sterlite Infrastructure Pvt. Ltd. Director –
5. Sterlite Infrastructure Holdings Pvt. Ltd. Director –
3. Mrs. Ajita Bajpai Pande

Mrs. Ajita Bajpai Pande is an IAS Officer presently holding the position of Joint Secretary, Ministry of Mines, Government
of India, New Delhi. She is also on the Board of following Companies:
Name of the company/body corporate/firms Nature of interest Committee/Chairman/Membership
1. Hindustan Copper Limited Director –

2. Bharat Aluminium Company Limited Director –
Means of Communication with Shareholders

The Company published its quarterly, half yearly and yearly results in the form as prescribed under Clause 41 of the
Listing Agreement within the prescribed time. The results were sent to stock exchanges where shares are listed and the
same were published in The Economic Times/Business Standard and Rajasthan Patrika/Dainik Bhaskar.

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The financial results and official news releases etc. are also displayed on the website of the Company www.hzlindia.com.
Annual Report containing inter-alia Audited Annual Accounts, Directors’ Report, Auditors’ Report and other important and
statutory information are circulated to all members and to others entitled. The Management Discussion and Analysis
Report along with CEO and CFO certificate forms part of the Annual Report.
Table 6: Details of the Announcement of the Financial Results for 2007-08

Description Date
Unaudited Financial Results for the quarter ended on 30 June 2007 24 July 2007
Audited Financial Results for the quarter/half year ended on 30 September 2007 22 October 2007
Unaudited Financial Results for the quarter/nine months ended on 31 December 2007 23 January 2008
Audited Financial Results for the quarter/year ended on 31 March 2008 24th April 2008
Further, the Company has also been complying with SEBI regulations for filing of its financial results under the EDIFAR
system. These are available on the SEBI website: www.sebiedifar.nic.in.
In addition to this, if there is any other announcement affecting the public it is duly informed to stock exchanges and
published in the newspapers for the benefit of shareholders and the public at large.
General Body Meetings

Table 7 gives the details of the last three General Meetings.
Table 7: Annual/Extraordinary General Meetings

Date AGM Location Time
16 September 2005 39th AGM Yashad Bhawan, Udaipur, Rajasthan 4.00pm

16 September 2006 40th AGM Yashad Bhawan, Udaipur, Rajasthan 4.00pm
21 September 2007 41st AGM Yashad Bhawan, Udaipur, Rajasthan 4.00pm
There were no special resolutions passed in the previous three AGMs.
Postal Ballot
None of the resolutions were required to be passed by postal ballot during the year.
Compliance
Mandatory Requirements
The Company is fully compliant with the applicable mandatory requirements of the revised Clause 49. The Company has
complied fully with the requirements of the regulatory authorities on capital markets. There have been no instances of
non-compliance by the Company on any matters related to the capital markets, nor has any penalty or stricture been
imposed on the Company by the stock exchanges, SEBI or any other statutory authority.
Adoption of Non-mandatory Requirements

a) Tenure of Independent Directors
No specific tenure has been specified for the Independent Directors.
b) Remuneration Committee
Other than the sitting fee, which is approved by the Board, none of the directors draw any remuneration from the
Company. Hence, no Remuneration Committee has
been formed.

c) Half-Yearly Declaration g) Secretarial Audit

A half-yearly declaration of financial performance Even though there is no mandatory requirement for
including summary of the significant events in last six Corporate Secretarial Audit, the Company carries out a
months is currently not being sent to each household Quarterly Secretarial Audit with regard to share transfers
of shareholders. However, the Company publishes its and other compliances and presents it to the Board.
results in national and state level newspapers having
wide circulation. The results are also posted on the h) Secretarial Standards
website of the Company: www.hzlindia.com. The Institute of Company Secretaries of India had
brought out Secretarial Standard called SS 1 to SS 6.
d) Audit Qualifications The Company is compliant with these standards
Management response on audit qualification, if any, is even as it is recommendatory in nature.
covered in the Directors’ Report.
e) Mechanism for Evaluation of Non-Executive Directors

The Company does not have a mechanism to review
performance of non-executive directors.
f) Whistleblower Policy
The Company has formalised a whistleblower policy and
its working is regularly reviewed by the Audit Committee.
The directors and senior management are obligated to
ensure that the whistleblower is not subjected to any
discriminatory practises. The Company has established
a mechanism for employees to report. The designated
email id for reporting is whistle.blower@vedanta.co.in.
The access to this email-id is provided to the
Head, Management Assurance.

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Additional Shareholder Information
Annual General Meeting

Date: 21 August 2008
Time: 3.30pm
Venue: Yashad Bhawan, Udaipur
Financial Calendar
Financial year: 1 April to 31 March
For the year ended 31 March 2008, results were announced on:
— 24 July 2007: First quarter
— 22 October 2007: Half year
— 23 January 2008: Third quarter
— 24 April 2008: Fourth quarter and annual.
For the year ending 31 March 2009, results will be announced by:
— End July 2008: First Quarter
— End October 2008: Half Year
— End January 2009: Third Quarter
— End April 2009: Fourth Quarter and Annual.
Book Closure
The dates of book closure are from 14 August 2008 to 20 August 2008, inclusive of both days.
Dividend
An interim dividend of Rs. 2.50 per equity share was paid on 13 September 2007. A final dividend of Rs. 2.50 per equity
share will be paid on or after 27 August 2008 within the statutory time limit, subject to approval by the shareholders at the
Annual General Meeting.
Listing
At present, the equity shares of the Company are listed on the Bombay Stock Exchange Limited, Mumbai (BSE), and
National Stock Exchange Limited (NSE). The annual listing fees for the financial year 2007-08 to NSE and BSE
has been paid.
Table 1: Hindustan Zinc’s Stock Exchange Codes

Name of the Stock Exchange Stock Code
National Stock Exchange Limited, Mumbai HINDZINC

Bombay Stock Exchange Limited, Mumbai 500188

continued
Stock Market Data

Table 2: High, Lows and Volumes of Company’s Shares for 2007-08 at BSE and NSE
BSE NSE
|
High Low Volume High Low Volume
April 2007 751.00 545.25 4,283,242 717.40 545 4132180

May 2007 765.00 645.00 3,120,058 767.25 627.20 2941230
June 2007 754.40 641.25 2,369,923 753.45 640 3360531
July 2007 828.00 686.00 2,340,330 828.80 676 2815243
August 2007 748.00 659.75 1,391,618 815 633.90 1897765
September 2007 819.95 686.15 1,759,192 820 685.05 2294311
October 2007 969.00 777.00 2,270,191 968 780.35 2884061
November 2007 931.00 679.20 1,647,493 929.30 677.10 2110839
December 2007 860.00 760.00 1,466,535 859.95 758 1989308
January 2008 842.95 510.00 1,163,940 841 500 1779842
February 2008 684.85 525.10 743,411 685 524.50 1364288
March 2008 649.00 507.00 656,301 655 491.10 1458631
Chart A: Hindustan Zinc’s Share Performance versus BSE Sensex

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Chart B: Hindustan Zinc’s Share Performance versus NSE NIFTY

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Note: Share price of Hindustan Zinc and NSE NIFTY have been indexed to 100 on 2 April 2007

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Distribution of Shareholding
Tables 3 and 4 list the distribution of the shareholding of the equity shares of the Company by size and by ownership class
as on 31 March 2008.
Table 3: Shareholding Pattern by Size on 31 March 2008

No. of % of No. of % of
No. of equity shares shareholders shareholders shares held shareholding
Up to 500 44,216 94.527 31,56,651 0.747

501–1,000 1,307 2.794 10,61,692 0.251
1,001–2,000 693 1.482 10,53,861 0.249
2,001–3,000 202 0.432 510758 0.121
3,001–4,000 82 0.175 2,92,517 0.069
4,001–5,000 57 0.122 2,63,644 0.062
5,001–10,000 102 0.218 7,19,230 0.170
10,001–20,000 37 0.079 5,03,149 0.119
20,001–30,000 15 0.032 3,77,311 0.089
30,001–40,000 10 0.022 3,45,573 0.082
40,001–50,000 3 0.006 1,49,652 0.035
50,001–60,000 17 0.036 13,25,936 0.314
100,001 and above 35 0.075 41,27,71,926 97.690
Total 46,776 100 422,531,900 100
Table 4: Shareholding Pattern by Ownership as on 31 March 2008

No. of Percentage of
Category shares held shareholding
A. Promoter’s holding
1 Promoters
Sterlite Opportunities and Ventures Limited 27,43,15,431 64.9218
Sub-total 27,43,15,431 64.9218
B. Non-Promoters Holding
Institutional Investors
a. Mutual Funds and UTI 28,20,188 0.6674
b. Banks, Financial Institutions, Insurance Companies (Central/State Govt. Institutions/
Non-government Institutions) 21,60,729 0.5114
c. FIIs 1,00,48,642 2.3782
Sub-total 1,50,29,559 3.5570
Others
a. Private Corporate Bodies 18,27,705 0.4325
b. Indian Public 63,60,307 1.5053
c NRIs/OCBs 1,88,339 0.0446
d. NRI company 14,400 0.0034
e. Bank Foreign 1,000 0.0002
f. Foreign National individual 100 0.0000
g. GOI – President of India 12,47,95,059 29.5351
Sub-total 13,31,86,910 31.5211
Grand total 42,25,31,900 100.0000

continued
Dematerlisation of Shares Request received for dematerialisation of shares are

The shares of the Company are compulsorily traded in processed and the confirmation is given by the Registrar
dematerialised form only. The Company’s shares are and Transfer Agents to the depositories generally within 15
available for trading in the depository system of both NSDL days. Bulk dematerialisation requests are processed and
and CDSL. As on 31 March 2008, 297,366,198 equity shares confirmed within 30 days of receipt to NSDL and CDSL.
forming 70.38 per cent of the share capital of the Company
stand dematerialised. The International Securities Company’s Registered Office Address
Identification Number (ISIN) allotted to the Company under Hindustan Zinc Limited
the depository system is INE 267A01017. Yashad Bhawan
Udaipur – 313004
The Company’s share is among the most actively traded Rajasthan
share on the Indian stock exchanges and is consistently
ranked among the top frequently traded shares, both in Plant Locations
terms of volume and value. Accordingly it has been
included in the futures and options (F&O) category. The Mining units
market lot for the same is 250 shares. Rampura Agucha Mine Bhilwara District (Rajasthan)
Sindesar Khurd Mine Rajsamand District (Rajasthan)
Outstanding GDRs/ADRs/Warrents/Options Rajpura Dariba Mine Rajsamand District (Rajasthan)
As on 31 March 2008 there were no outstanding GDRs/ Zawar Mines Udaipur District (Rajasthan)
ADRs etc.
Smelting units
Details of Public Funding Obtained in the Last Three
Years Chanderiya Lead
No public funding has been obtained in the last three Zinc Smelter Chittorgarh District (Rajasthan)
years. Debari Zinc Smelter Udaipur District (Rajasthan)
Vizag Zinc Smelter Visakhapatnam (Andhra Pradesh)
Registrar and Transfer Agent Lead Smelter Tundoo Dhanbad ( Jharkhand)
Dematerialisation and electronic connectivity services
have been entrusted to: Wind power farms
Samana Jamnagar District, Gujarat

M/s. Sharepro Services Gadag Gadag District, Karnataka
Satam Estate, 3rd Floor
Above Bank of Baroda
Address for Correspondence
Cardinal Gracious Road, Chakala
Mr. R. Pandwal
Andheri (E), Mumbai – 400 099
Company Secretary
Phone: 022-28125168
Fax: 022-28375646
Yashad Bhawan
Udaipur – 313004
Share Transfer System
Rajasthan
Shares lodged in physical form for transfer, are usually
transferred within seven days if the documents are clear
in all respects. Shares under objection are in general
returned within a week’s time. For transfer of shares in
physical form, the Board of Directors have authorised the
Company Secretary to process and approve the transfer
of share and registration.

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CERTIFICATION BY CHIEF EXECUTIVE OFFICER

AND CHIEF FINANCIAL OFFICER OF THE COMPANY
We, M.S. Mehta, CEO and full-time Director, and S.L. Bajaj, 4. We confirm that:
Chief Financial Officer of Hindustan Zinc Limited, to the
best of our knowledge and belief, certify that: a) there are no deficiencies in the design or operation
of internal controls, which could materially
1. We have reviewed the balance sheet and profit and loss adversely affect the Company’s ability to record,
account, and all its schedules etc., and confirm that: process, summarize and report financial data;
b) there are no significant changes in internal controls
a) based on our knowledge and information, these during the period;
statements do not contain any untrue statement of a c) all significant changes in accounting policies during
material fact or omit to state a material fact or the year have been disclosed in the notes to the
contain statements that might be misleading. financial statements; and
b) based on our knowledge and information, the d) there are no instances of significant fraud of which
financial statements, present in all material we are aware, that involves management or other
respects, a true and fair view of, the Company’s employees who have a significant role in the
affairs and are in compliance with the existing Company’s internal control system.
accounting standards and/or applicable laws and
regulations. 5. We affirm that we have not denied any personnel
access to the Audit Committee of the Company (in
2. To the best of our knowledge and belief, no transactions respect of matters involving alleged misconduct) and
entered into by the Company during the period are we have provided protection to ‘whistleblowers’ from
fraudulent, illegal or violative of the Company’s code of unfair termination and other unfair or prejudicial
conduct. employment practices.
3. We are responsible for establishing and maintaining

internal controls for financial reporting and we have
evaluated the effectiveness of the internal control
systems of the Company, and we have:
a) designed such controls and procedures to ensure M.S. Mehta S.L. Bajaj
that material information relating to the Company is CEO and whole time chief financial officer
made known to us; Director
b) designed such internal control over financial
reporting to provide reasonable assurance Date: 24 April 2008
regarding the reliability of financial reporting and Place: Mumbai
the preparation of financial statements in
accordance with generally accepted accounting
principles;
c) evaluated the effectiveness of the Company’s
disclosure, controls and procedures; and

AUDITORS’ CERTIFICATE
To the Members of Hindustan Zinc Limited

1. We have examined the compliance of conditions of
Corporate Governance by Hindustan Zinc Limited, for
the year ended on 31 March 2008, as stipulated in
Clause 49 of the Listing Agreement of the said Company
with stock exchanges.
2. The compliance of conditions of Corporate Governance
is the responsibility of the management. Our
examination was limited to a review of the procedures
and implementation thereof, adopted by the Company
for ensuring the compliance of the conditions of the
certificate of Corporate Governance as stipulated in the
said Clause. It is neither an audit nor an expression of
opinion on the financial statements of the Company.
3. In our opinion and to the best of our information and
according to the explanations given to us, the
representations made by the directors and the
management, we certify that the Company has
complied with the conditions of Corporate Governance
as stipulated in Clause 49 of the above mentioned
Listing Agreement.
4. We state that such compliance is neither an assurance
as to the future viability of the Company nor the
efficiency or effectiveness with which the management
has conducted the affairs of the Company.

For Deloitte Haskins & Sells
Shyamak R. Tata
Partner
M. No. 38320
Date: 12 May 2008

Place: Mumbai

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Auditors’ Report
To the members of Hindustan Zinc Limited 5. Further to our comments in the Annexure referred to in
1. We have audited the attached Balance Sheet of paragraph 3 above, we report that:
Hindustan Zinc Limited (the Company) as at 31 March a. we have obtained all the information and
2008, the Profit and Loss Account and Cash Flow explanations which, to the best of our knowledge
statement of the Company for the year ended on that and belief, were necessary for the purposes of our
date, annexed thereto. These financial statements are audit;
the responsibility of the Company’s management. Our b. in our opinion, proper books of accounts as required
responsibility is to express an opinion on these financial by law have been kept by the Company so far as
statements based on our audit. appears from our examination of those books;
c. the Balance Sheet, the Profit and Loss Account and
2. We conducted our audit in accordance with generally the Cash Flow Statement dealt with by this report
accepted auditing standards in India. Those standards are in agreement with the books of account;
require that we plan and perform the audit to obtain d. in our opinion, the Balance Sheet, the Profit and
reasonable assurance about whether the financial Loss Account and the Cash Flow Statement dealt
statements are free of material misstatement. An audit with by this report comply with the Accounting
includes examining, on a test basis, evidence Standards referred to in sub-section (3C) of Section
supporting the amounts and disclosures in the financial 211 of the Companies Act, 1956 except for
statements. An audit also includes assessing the paragraph 4 above. Additionally, the Company has
accounting principles used and significant estimates chosen to early adopt Accounting Standard 30,
made by management, as well as evaluating the overall Financial Instruments: Recognition and
financial statement presentation. We believe that our Measurement arising from the Announcement
audit provides a reasonable basis for our opinion. of the Institute of Chartered Accountants of
India on 29 March 2008 as stated in Note 16
3. As required by the Companies (Auditor’s Report) Order, on Schedule 18; and
2003, issued by the Central Government of India in e. in our opinion and to the best of our information and
terms of sub-section (4A) of Section 227 of the according to the explanations given to us, the said
Companies Act, 1956, we enclose in the Annexure a accounts read with notes give the information
statement on the matters specified in paragraphs 4 and required by the Companies Act, 1956, in the manner
5 of the said Order. so required and give a true and fair view in
conformity with the accounting principles generally
4. Reference is invited to Note 15 on Schedule 18 , relating accepted in India:
to long-term investment in equity shares of a power i. in the case of the Balance Sheet, of the state of
company being classified as an intangible asset affairs of the Company as at 31 March 2008;
(Schedule 4) and amortised. This treatment is in ii. in the case of the Profit and Loss Account, of the
preference to requirements of Accounting Standard 13 profit of the Company for the year ended on that
‘Accounting for Investments’, Accounting Standard 30 date; and
‘Financial Instruments: Recognition and Measurement’ iii. in the case of the Cash Flow Statement, of the
and Schedule XIV of the Companies Act, 1956. This has cash flows of the Company for the year ended on
resulted in profit for the year being lower by Rs. 4.67 that date.
crore (2007: Rs. 4.67 crore), investments being lower by
Rs. 98.41 crores (2007: Rs. 98.41 crore) and reserves 6. On the basis of written representations received from
and surplus being lower by Rs. 33.04 crores (2007: Rs. the directors, as on 31 March 2008, and taken on record
28.37 crore). by the Board of Directors, we report that none of the
directors is disqualified as on 31 March 2008 from
being appointed as a director in terms of Section
274(1)(g) of the Companies Act, 1956.
For Deloitte Haskins & Sells

Shyamak R. Tata
Partner
M. No. 38320
Date: 24 April 2008

Place: Mumbai
Annexure to the Auditors’ Report
(Referred to in paragraph 3 of Auditors’ Report of where applicable, with regard to the deposits accepted
even date) from the public. The provision of Section 58AA of the
In our opinion and according to the information and Companies Act, 1956, are not applicable to the
explanation given to us, the nature of the Company’s Company.
business/activities during the year are such that clauses,
(iii), (v), (x), (xii), (xiii), (xiv), (xv), (xvi), (xviii), (xix) and (xx) of 5. In our opinion, the Company has an adequate internal
the Companies (Auditors’ Report) Order 2003, are not audit system commensurate with the size of the
applicable to the Company and we state that: Company and the nature of its business.
1. In respect of its fixed assets: 6. We have broadly reviewed the books of account and
i. The Company has maintained proper records records maintained by the Company relating to the
showing full particulars, including quantitative manufacture of zinc, lead and sulphuric acid, pursuant
details and situation of fixed assets. to the order made by the central government for the
ii. The Company has a phase of physical verification of maintained of cost records under Section 209(1)(d) of
its fixed assets in a three year period which, in our the Companies Act, 1956, and are of the opinion that
opinion, is reasonable, having regard to the size of prima facie the prescribed accounts and records have
the Company and the nature of its assets. In been made and maintained. We have, however, not
accordance with such a programme, the made a detailed examination of the records with a view
management has physically verified the fixed assets to determining whether they are accurate or complete.
and no material discrepancies were noticed on such
verification. 7. According to the information and explanations given to
iii. In our opinion and according to the information and us, and the records of the Company examined by us:
explanations given to us, a substantial part of fixed i. The Company has been regular in depositing with
assets has not been disposed of by the Company appropriate authorities undisputed statutory dues
during the year. including provident fund, investor education and
protection fund, income tax, sales tax, wealth tax,
2. In respect of its inventories: service tax, custom duty, excise duty, cess and any
i. Inventory has been physically verified by the other material statutory dues; and
management during the year. ii. Disputed sales tax, excise duty, royalty and income
ii. In our opinion and according to the information and tax dues aggregating to Rs. 26.80 crore, Rs. 43.27
explanations given to us, the procedures of physical crore, Rs. 163.06 crore and Rs. 214.82 crore
verification of inventories followed by the respectively, have not been deposited since the
management are reasonable and adequate in matters are pending with the relevant forum as per
relation to the size of the Company and the nature Annexure ‘A’ attached.
of its business.
iii. In our opinion, the Company has maintained proper 8. The Company has not defaulted in repayment of dues to
records of its inventories. The discrepancies noticed financial institutions and banks.
on verification between the physical stock and the
book records were not material having regard to the 9. On an overall examination of the Balance Sheet of the
size of the operation of the Company. Company, funds raised on a short-term basis have,
prima facie, not been used during the year for long-
3. There is an adequate internal control system term investment.
commensurate with the size of the Company and
the nature of its business with regard to purchase 10. To the best of our knowledge and belief and according
of inventory and fixed assets and for the sale of goods. to the information and explanation given to us, no
Further, on the basis of our examination of books and significant fraud on or by the Company was noticed or
records of the Company we have neither come across reported during the year.
nor have been informed of any continuing failure to
correct major weakness in the aforesaid internal For Deloitte Haskins & Sells
control procedure. Chartered Accountants
4. The Company has complied with the provision of Shyamak R. Tata

Section 58A or any other relevant provision of the Partner
Companies Act, 1956 and the rules framed thereunder M. No. 38320
and the directives issued by the Reserve Bank of India,
Date: 24 April 2008
Place: Mumbai
governance
Annexure A
Statement of unpaid disputed statutory dues annexed to Auditors’ Report

Amount
Nature of dues (Rs. in crore) Forum pending at
Company’s appeals:
a) Sales tax claim Disputes in respect of sales tax rate 26.80 Deputy Commissioner, Joint
difference/classification and stock Commissioner, CTO, Tribunal
transfer treated as sales for the and High Court
financial year 1980-81 to 2004-05.
b) Central excise duty In respect of modvat/cenvat credit on 43.27 CESTAT, Commissioner (Appeals)
inputs, capital goods, alleged duty and High Court/Supreme Court
demand on captive use of intermediate goods,
reversal of the amount on dispute of by-product,
duty on valuation and storage/handling losses
for financial year 1988-89 to 2003-04.
70.07
Department’s appeals:
a) Royalty Appeal filed by the Mining Engineer, 163.06 Supreme Court
Department of Mines & Geology,
Government of Rajasthan against the Company
b) Income tax
Assessment year
1989-90 to 1992-93; Relief granted by CIT(A) for difference in 171.80 Tribunal
1994-95 to 2003-04 computation, allowances of certain
expenses and enhancement of rebate, etc.
1990-91 to 1996-97 Relief granted by tribunal for difference 43.02 High Court/Supreme Court
in computation, allowances of certain
expenses and enhancement of rebate, etc.
377.88

BALANCE SHEET
AS AT 31 MARCH 2008
Rs. in crore
Schedule 2008 2007
SOURCES OF FUNDS
Shareholders’ funds
Capital 1 422.53 422.53
Reserves and surplus 2 11,425.66 11,848.19 7,204.53 7,627.06
Loan funds
Unsecured loans 3 0.39 0.39
Deferred tax liability (net) 459.68 300.63
TOTAL 12,308.26 7,928.08
APPLICATION OF FUNDS
Fixed assets 4
Gross block 5,181.80 3,499.79
Less: Depreciation (1,484.64) (1,264.19)
Net block 3,697.16 2,235.60
Capital work in progress (includes advances) 465.46 4,162.62 634.99 2,870.59
Investments 5 6,332.45 4,403.30
Current assets, loans and advances
Inventories 6 518.10 499.28
Sundry debtors 7 443.66 556.62
Cash and bank balances 8 1,362.78 119.70
Other current assets 9 3.00 0.69
Loans and advances 10 384.09 304.66
2,711.63 1,480.95
Less: Current liabilities and provisions 11
Current liabilities 774.86 641.81
Provisions 123.58 184.95
898.44 826.76
Net current assets 1,813.19 654.19
TOTAL 12,308.26 7,928.08
Notes 18
Schedules 1 to 18 form an integral part of these accounts.
In terms of our report of even date.
For Deloitte Haskins & Sells For and on behalf of the Board of Directors.
Chartered Accountants:
Shyamak R Tata Tarun Jain K.K. Kaura M.S. Mehta

Partner Director Director CEO & Whole time Director
Membership No: 38320
Date: 24 April 2008 S.L. Bajaj R. Pandwal

Place: Mumbai Chief Financial Officer Company Secretary

FINANCIALS
PROFIT AND LOSS ACCOUNT

FOR YEAR ENDED 31 MARCH 2008
Rs. in crore
Schedule 2008 2007
INCOME
Sales 8,736.91 9,220.45
Less: Excise (859.14) 7,877.77 (660.23) 8,560.22
Other income 12 851.63 231.27
Total 8,729.40 8,791.49
EXPENDITURE
Mining and manufacturing 13 1,804.26 1,684.35
(Accretion)/Decretion of stock 14 59.11 (56.91)
Employees’ remuneration and benefits 15 308.19 259.81
Administrative and selling 16 327.82 266.06
Finance 17 24.17 28.44
Depreciation 220.51 156.08
Total 2,744.06 2,337.83
PROFIT BEFORE TAX 5,985.34 6,453.66
Provision for tax – Current 1,545.07 1,975.56
– Prior year (79.69) (24.68)
– Deferred 122.01 59.50
– Fringe benefit 1.88 1.47
PROFIT AFTER TAX 4,396.07 4,441.81
Balance being surplus brought forward 970.50 122.72
PROFIT AVAILABLE FOR APPROPRIATION 5,366.57 4,564.53
APPROPRIATION
Dividend
Final 105.63 105.63
Interim 105.63 105.63
Corporate dividend tax 35.90 32.77
General reserve 500.00 3,350.00
Balance being surplus carried forward 4,619.41 970.50
5,366.57 4,564.53
Basic and diluted earnings per share (in Rs.) 104.04 105.12
Notes 18
Schedules 1 to 18 form an integral part of these accounts.



CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2008
Rs. in crore
2008 2007
A) CASH FLOW FROM OPERATING ACTIVITIES:

Net profit before tax 5,985.34 6,453.66
Adjustments for:
Depreciation and amortisation 222.32 156.85
Movement in general reserve – (0.50)
Interest and finance charges 24.17 28.44
Interest and dividend earned (228.51) (70.21)
Mark to market on commodity hedging (21.83)
Provision for expenses written back (148.12) (8.26)
Provision for dimunition in value of investment written back – (0.31)
Loss on sale of fixed asset (net) (1.25) 0.91
Profit on current Investment (net) (391.34) (108.75)
Operating profit before working capital changes 5,440.78 6,451.83
Changes in working capitaL
Inventories (18.82) (116.18)
Sundry debtors 112.96 133.23
Loans and Advances (79.92) (142.43)
Current liabilities 281.78 236.28
Cash generated from operations 5,736.78 6,562.73
Income taxes paid during the year (1,528.78) (1,958.15)
Net cash generated from operating activities 4,208.00 4,604.58
B) CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of fixed assets (1,515.06) (1,114.43)
Interest and dividend received 226.19 69.70
Purchase of investments (24,150.89) (23,608.96)
Sale of investment 22,744.19 20,919.60
Sale of fixed assets 1.96 4.17
Net cash used in investing activities (2,693.61) (3,729.92)
C) CASH FLOW FROM FINANCING ACTIVITIES:
Net proceeds from borrowings – (557.63)
Interest and finance charges paid (24.08) (30.91)
Dividend and tax thereon paid (247.23) (240.45)
Net cash used in financing activities (271.31) (828.99)
Net increase in cash and cash equivalents 1243.08 45.67
Cash and cash equivalents at the end of the year 1362.78 119.70
Cash and cash equivalents at the beginning of the year 119.70 74.03
1243.08 45.67
Note: Previous year’s figures have been recast/regrouped, wherever necessary.


FINANCIALS
SCHEDULE ANNEXED TO AND FORMING PART

OF THE ACCOUNTS
1. CAPITAL
Rs. in crore
2008 2007
Authorised
500,000,000 (2007: 500,000,000 ) equity shares of Rs. 10/- each. 500.00 500.00
500.00 500.00
Issued, subscribed and paid up
422,531,900 (2007: 422,531,900) equity shares of Rs. 10/- each fully paid up 422.53 422.53
422.53 422.53
Of the above:
a) 21,370,000 (2007: 21,370,000 ) equity shares of Rs. 10/- each allotted for consideration other than cash
b) 274,315,431 (2007: 274,315,431 ) equity shares of Rs. 10/- each are held by Sterlite Opportunities and Ventures Limited (SOVL) – holding company. SOVL is a subsidiary
of Sterlite Industries (India) Limited (SIIL) and the ultimate holding company is Vedanta Resources Plc, United Kingdom (VRP). SIIL and VRP do not hold any shares in
the company.
2. RESERVES AND SURPLUS
Rs. in crore
2008 2007
Capital reserve
Balance provisions after adjustment as per Metal Corporation
(Nationalisation and Miscellaneous Provision) Act, 1976.
Balance as per last balance sheet 0.61 0.61
General reserve
As per last balance sheet 6,233.42 2,883.92
Less: Incremental liability for retirement benefit (net of tax)
– revised standard adopted – 0.50
Add: Adjustments (net of tax) arising due to early adoption of
Accounting Standard 30 issued by ICAI (Refer to Note 16, Schedule 18) 72.29 –
Add: Transferred from profit and loss account 500.00 3,350.00
6,805.71 6,233.42
Hedging reserves
– arising on early adoption of Accounting Standard 30 issued by ICAI (0.07) –
Profit and loss account – surplus 4,619.41 970.50
11,425.66 7,204.53
3 . UNSECURED LOANS
Rs. in crore
2008 2007
From other than bank 0.39 0.39

0.39 0.39

OF THE ACCOUNTS continued
4. FIXED ASSETS
Gross block (at cost)

Net gross
As at Deductions/ As at Adjustment block as at
Rs. in crore 31/3/07 Additions Adjustment 31/3/08 for grant 31/3/08
Land (including development expenditure)

Freehold 13.46 0.23 – 13.69 – 13.69
Leasehold 0.35 11.10 – 11.45 – 11.45
Buildings and roads1 214.20 86.82 – 301.02 0.25 300.77
Mine development expenditure 59.88 – – 59.88 – 59.88
Railway sidings, locomotives and wagons 8.20 0.25 – 8.45 – 8.45
Plant and machinery 3,033.20 1,575.14 2.58 4,605.76 14.11 4,591.65
Other equipment 62.40 12.58 1.21 73.77 2.04 71.73
Intangible assets
Investment in shares 98.41 – – 98.41 – 98.41
Computer software 1.70 0.88 – 2.58 – 2.58
Furniture and fittings 11.38 1.37 0.18 12.57 – 12.57
Vehicles 6.98 1.79 0.38 8.39 – 8.39
Assets retired from active use 6.03 – 3.80 2.23 – 2.23
Total 3,516.19 1,690.16 8.15 5,198.20 16.40 5,181.80
Previous year (total) 3,006.36 537.23 27.40 3,516.19 16.40 3,499.79
1 Buildings includes Rs. 1.03 (2007: Rs. 1.03) crore where bifurcation of the cost between land and building is not ascertained.
Depreciation/amortisation Net Block

|
Provided
Upto during Deductions/ Upto As at As at
Rs. in crore 31/3/07 the year Adjustment 31/3/08 31/3/08 31/3/07
Land (including development expenditure)

Freehold – – – – 13.69 13.46
Leasehold – – – – 11.45 0.35
Buildings and roads 44.43 6.27 – 50.70 250.07 169.52
Mine development expenditure 58.35 1.53 – 59.88 – 1.53
Railway sidings, locomotives and wagons 5.82 0.37 – 6.19 2.26 2.38
Plant and machinery 1,079.40 209.12 2.37 1,286.15 3,305.50 1,939.69
Other equipment 29.66 4.61 0.81 33.46 38.27 30.70
Intangible asset
Investment in shares 28.37 4.67 – 33.04 65.37 70.04
Computer software 1.49 0.21 – 1.70 0.88 0.21
Furniture and fittings 6.13 0.60 0.37 6.36 6.21 5.25
Vehicles 4.83 0.49 0.28 5.04 3.35 2.15
Assets retired from active use 5.71 0.02 3.61 2.12 0.11 0.32
1,264.19 227.89 7.44 1,484.64 3,697.16 2,235.60
Previous year (total) 1129.66 156.85 22.32 1,264.19 – 2,235.60
Capital work in progress 292.66 373.68
Advance towards capital goods and services considered good 172.80 261.31
Total 4,162.62 2,870.59

FINANCIALS
4. FIXED ASSETS continued
Rs. in crore
2008 2007
Profit and loss account 220.51 156.08

Expenditure on mine development 1.53 0.51
Capitalised in fixed asset 5.59 –
Research and development expenditure 0.26 0.26
227.89 156.85
100% depreciation has been charged on following assets:
– Plant and machinery and vehicles 0.26 0.10
– Furniture and fixtures 0.12 0.03
Cumulative 7.12 6.74
5. INVESTMENTS – Non-trade and unquoted unless stated otherwise

Long-term investments – at cost
In fully paid-up equity shares (trade investment)
Rs. in crore
2007-08 2006-07
|
Face value Total number Value as at Total number Value as at
(in Rs.) of shares 31/3/08 of shares 31/3/07
Madanpur South Coal Company Limited 10 130,001 1.39 10,000 0.01

5. INVESTMENTS – Non-trade and unquoted unless stated otherwise continued

Current investment- at fair value through Profit or loss (2007 – at lower of cost and market value)
In mutual funds
Rs. in crore
2007-08 2006-07
|
(in Rs.) of units 31/3/08 of units 31/3/07
ABN AMRO Fixed Term Plan – Series 5 10 10000000 11.13 10000000 10.00
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan A 10 10000000 10.75 – –
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan E 10 25000000 26.13 – –
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan D 10 32439600 34.28 – –
ABN AMRO Flexible Short Term Plan – Series B 10 36642373 36.93 – –
Birla Fixed Term Plan Series AC 10 5000000 5.20 – –
Birla Fixed Term Plan Series AE 10 10000000 10.31 – –
Birla Fixed Term Plan Series AJ 10 10000000 10.19 – –
Birla Fixed Term Plan Series X 10 15000000 16.09 – –
Birla Fixed Term Plan Series AD 10 18000000 18.57 – –
Birla Fixed Term Plan Series AA 10 20000000 21.10 – –
Birla Fixed Term Plan Series R (400 days) (March 2007) 10 20000000 22.21 20000000 20.00
Birla Fixed Term Plan Series S 10 23000000 25.58 23000000 23.00
Birla Fixed Term Plan Series AB 10 25000000 26.32 – –
Birla Sun Life Interval Income Fund – Quarterly Plan Series I 10 35202231 35.29 – –
Birla Fixed Maturity Plan Series O (500 days) (December 06) 10 40000000 44.52 40000000 40.00
Birla Fixed Term Plan Series U 10 42000000 46.66 42000000 42.00
Birla Sun life Liquid plus IP 10 89451357 89.51 – –
Birla Fixed Term Plan Series AN 10 100000000 100.67 – –
Birla Sun Life Interval Income Fund – Quarterly Plan Series III 10 101576114 101.77 – –
Birla Fixed Term Plan Series T 10 200000000 222.06 200000000 200.00
DBS Chola Fixed Maturity Plan Series 6 10 30000000 32.81 30000000 30.00
DSP ML Fixed Term Plan Series 3H 10 100000 10.37 – –
DSP ML FMP 18 Months Series 1 10 15000000 15.61 – –
DSP ML Liquid Plus Fund – IP 10 153837 15.39 – –
DSP ML Fixed Term Plan Series 3E 10 750000 83.00 750000 75.00
DWS Fixed Term Fund – Series 32 10 7000000 7.63 – –
DWS Fixed Term Fund – Series 20 10 15000000 16.86 15000000 15.00
DWS FMP – Series 21 – 390 days 10 35000000 38.83 35000000 35.00
DWS Fixed Term Fund – Series 24 10 100000000 111.08 100000000 100.00
Fidelity Liquid Plus Super Inst 10 10007859 10.01 – –
HDFC FMP 367 D June 2007 10 5000000 5.36 – –
HDFC FMP 367 D September 2007 10 5000000 5.22 – –
HDFC FMP 367 D August 2007 10 15000000 15.79 – –
HDFC Fixed Maturity Plan 18 M October 2006 10 25000000 28.07 25000000 25.00
HDFC Fixed Maturity Plan 15 M March 2007 10 45000000 50.06 45000000 45.00
HDFC Cash Management Fund – Savings Plus 10 65712733 65.92 – –
HDFC Fixed Maturity Plan 14 M March 2007 10 107000000 119.09 107000000 107.00
HSBC Fixed Term Series 32 10 10000000 10.68 – –
HSBC Fixed Term Series 27 10 15000000 16.65 15000000 15.00

FINANCIALS

Current investment – at fair value through Profit or loss (2007 – at lower of cost and market value) continued
In mutual funds continued
Rs. in crore
2007-08 2006-07
|

ICICI Prudential Fixed Maturity Plan Series 38 – One year Plan D 10 10000000 10.32 – –
ICICI Prudential Fixed Maturity Plan Series – 41 10 10000000 10.26 – –
ICICI Prudential FMP Series – 42 16 Months Plan 10 15000000 15.16 – –
ICICI Prudential Interval Fund – Annual Interval Plan III 10 20000000 20.72 – –
ICICI Prudential FMP Series 35 One Year Plan – Instl. Div. 10 25000000 27.50 – –
ICICI Prudential Interval Fund II Quarterly Interval Plan E 10 25000000 25.12 – –
ICICI Prudential FMP Series 37 14 Months Plan 10 35000000 38.74 35000000 35.00
ICICI Prudential FMP-Series 34 15 Months Plan (February 2007) 10 50000000 56.17 50000000 50.00
ICICI Prudential Interval Fund – Annual Interval Plan II 10 50000000 52.11 – –
ICICI Prudential Interval Fund II Quarterly Interval Plan C 10 101683345 101.79 – –
ICICI Prudential Flexible Income Plan 10 98268007 103.90 – –
ICICI Prudential FMP Series 35 13 Months Plan B 10 150000000 166.68 150000000 150.00
ING Fixed Maturity Fund – Series 32 10 40000000 42.14 – –
ING Fixed Maturity Fund – Series 31 10 50000000 52.45 – –
ING Vysya Liquid Plus Fund – Institutional Fund 10 51398162 51.42 – –
JM Fixed Maturity Fund – Series IV – Yearly Plan Growth Plan 10 10000000 11.16 10000000 10.00
JM Fixed Maturity Fund – Series IV – 13 Months Plan F4 Growth Plan 10 15000000 16.77 15000000 15.00
JM Fixed Maturity Fund – Series VII 10 27004691 28.38 – –
JM Arbitrage Advantage Fund – Growth Plan 10 39701103 46.00 – –
JM Money Manager Fund Super Plus 10 117112012 117.16 – –
Kotak FMP 12 M Series 1 10 10000000 10.73 – –
Kotak Quarterly Interval Plan Series 5 10 53762033 53.84 – –
Kotak FMP 13 M Series 1 10 75000000 83.21 75000000 75.00
Kotak Flexi Debt Fund 10 99579352 99.89 – –
Lotus India FMP – 13 Months – Series II 10 5000000 5.54 5000000 5.00
Lotus India FMP – 14 Months – Series I 10 10000000 11.12 10000000 10.00
Lotus India FMP – 375 Days – Series III 10 10000000 10.56 – –
Lotus India FMP – 15 Months – Series II 10 10001712 10.23 – –
Lotus India FMP – 375 Days – Series V 10 15549525 16.07 – –
Lotus India FMP – 3 Months – Series XXII 10 20263482 20.28 – –
Lotus India FMP – 375 Days – Series IV 10 25000000 26.16 – –
Principal Fixed Maturity Fund – Plan 460 days Series IV 10 8000000 8.05 – –
Principal Pnb Fixed Maturity Plan – 385 days – Series V 10 10000000 10.49 – –
Principal Deposit Fund-Plan 540 Days SeriesI (January 2007) 10 15000000 16.67 15000000 15.00
Principal Pnb Fixed Maturity Plan – 385 days – Series VI 10 15000000 15.42 – –
Principal Pnb Fixed Maturity Plan – 385 days – Series IV 10 30000000 33.19 30000000 30.00
Principal Income Fund 10 38087110 43.43 38087110 39.66


Rs. in crore
2007-08 2006-07
|
Principal Fixed Maturity Fund – Plan 460 days Series III (March 2007) 10 40000000 44.54 40000000 40.00
Principal Floating Rate Fund FMP-IP 10 213445695 213.68 – –
Reliance Fixed Horizon Fund – VII Series 1 10 15000000 15.23 – –
Reliance Fixed Horizon Fund – IV Series 6 10 20000000 20.64 – –
Reliance Fixed Horizon Fund – II Annual Plan – Series IV (470 Days, January 2007) 10 25000000 27.80 25000000 25.00
Reliance Fixed Horizon Fund IV – Series 1 10 30000000 31.77 – –
Reliance Fixed Horizon Fund IV – Series 2 10 30000000 31.61 – –
Reliance Fixed Horizon Fund – II – Annual Plan V (February 2007) 10 35000000 38.93 35000000 35.00
Reliance Fixed Horizon Fund – VII Series 3 10 50000000 50.40 – –
Reliance Liquid Plus Fund – Institutional Plan 10 934217 93.53 – –
Reliance Fixed Horizon Fund – III Annual Plan Series I 10 100000000 111.25 100000000 100.00
Reliance Fixed Horizon Fund – III Annual Plan Series IV 10 100000000 111.11 100000000 100.00
Reliance Fixed Horizon Fund – II Annual Plan Series VI 10 150000000 166.57 150000000 150.00
Reliance Fixed Horizon Fund – III Annual Plan Series VI1 10 200000000 217.94 – –
Reliance Fixed Horizon Fund – III Annual Plan Series III 10 200000000 223.13 200000000 200.00
SBI Debt Fund Series – 90 Days – 20 10 101900349 102.70 – –
Standard Chartered Fixed Maturity Plan – Yearly Series 7 10 25000000 27.41 – –
Standard Chartered Fixed Maturity Plan – Yearly Series 17 Plan B 10 30000000 30.21 – –
Standard Chartered Fixed Maturity Plan – Yearly Series 19 Plan B 10 35000000 35.13 – –
Standard Chartered Fixed Maturity Plan – Yearly Series 5 10 35000000 38.83 35000000 35.00
Standard Chartered Fixed Maturity Plan – Yearly Series 3 10 40000000 44.44 40000000 40.00
Tata Fixed Horizon Fund – Series 13 – Scheme C 10 10000000 10.54 – –
Tata Fixed Horizon Fund – Series 13 – Scheme B 10 15000000 15.85 – –
Tata Fixed Horizon Fund – Series 7 – Scheme D 16 Months (December 2006) 10 15000000 16.67 15000000 15.00
Tata Fixed Horizon Fund – Series 13 – Scheme A – IG 10 20000000 21.53 – –
Tata Fixed Horizon Fund – Series 14 – Scheme A 10 20000000 21.10 – –
Tata Fixed Horizon Fund – Series 7 – Scheme A 13 Months (March 2007) 10 20000000 22.22 20000000 20.00
Tata Fixed Horizon Fund – Series 6 – Scheme – C 13 Months (March 2007) 10 25000000 27.82 25000000 25.00
Tata Fixed Horizon Fund – Series 7 – Scheme B (March 07) 10 40000000 44.39 40000000 40.00
Tata Floating Rate Fund – LT 10 148637545 150.60 – –
Tata Dynamic Option Bond Fund – Option B 10 191475735 195.11 – –
Templeton Fixed Horizon Fund – Series I (January 207) (15 Months) 10 20000000 22.18 20000000 20.00
Templeton Fixed Horizon Fund – Series II Plan B 10 20000000 21.45 – –
Templeton Fixed Tenure Fund – Series VII (370 days plan) 10 50000000 55.47 50000000 50.00
Templeton Fixed Horizon Fund – Series I (13 months plan) 10 105000000 116.64 105000000 105.00
UTI Fixed Term Income Fund – Series II Plan 16 – Institutional Growth Plan 10 20000000 21.28 20000000 20.00
UTI – Fixed Income Interval Fund – Annual Interval Plan Series 3 10 50000000 52.34 – –
UTI Fixed Maturity Plan – HFMP (March 2008) 10 74559731 74.80 – –
UTI Liquid Plus Fund Institutional Plan 10 797220 79.74 – –
UTI Fixed Maturity Plan Yearly Series YFMP/March 2007 – Growth Plan 10 129380575 138.00 129380575 129.38
ABN AMRO Fixed Term Plan – Series 1 10 – – 40000000 40.00
Birla Fixed Term Plan Series E 10 – – 20000000 20.00
Birla Fixed Term Plan Series F 10 – – 31000000 31.00
Birla Fixed Term Plan Series H 10 – – 82000000 82.00

FINANCIALS

Rs. in crore
2007-08 2006-07
|
DSP ML Fixed Term Plan Series 3A 10 – – 400000 40.00

DWS Fixed Income fund – Series 15 10 – – 20000000 20.00
DWS Fixed Maturity Plan – Series 10 10 – – 25000000 25.00
DWS Fixed Maturity Plan – Series 14 10 – – 50000000 50.00
DWS Fixed Term Fund – Series 4 10 – – 5000000 5.00
HDFC Fixed Maturity Plan July 2006 10 – – 25000000 25.00
HDFC Fixed Maturity Plan September 2006 10 – – 30000000 30.00
HDFC FMP 10 – – 30000000 30.00
HDFC FMP June 2006 (1) 10 – – 40000000 40.00
HSBC Fixed Term Series 13 10 – – 30000000 30.00
HSBC Fixed Term Series 15 (September 2006) 10 – – 50000000 50.00
ICICI Prudential Fixed Maturity Plan Series 25 10 – – 23343542 25.00
ICICI Prudential Fixed Maturity Plan Series 12 Inst 10 – – 19980020 20.00
ICICI Prudential Hybrid FMP 13 10 – – 25000000 25.00
ICICI Prudential Hybrid FMP 13 10 – – 50000000 50.00
ING Vysya FMP Series VII 10 – – 17000000 17.00
ING Vysya FMP Series XV 10 – – 25000000 25.00
JM Equity And Derivative Fund – Bonud 10 – – 7415958 7.41
JM Equity And Derivative Fund – Growth 10 – – 52565414 55.95
JM Fixed Maturity Plan Series II 10 – – 40000000 40.00
JM High Liquidity Fund – Bonus Option 10 – – 39721505 40.73
Kotak FMP Series XIV 10 – – 10000000 10.00
Kotak FMP Series 13 10 – – 40000000 40.00
Kotak FMP Series 25 10 – – 40000000 40.00
Kotak FMP Series XXI 10 – – 25000000 25.00
Kotak FMP Series 1 10 – – 30000000 30.00
Kotak FMP Series 2 10 – – 50000000 50.00
Kotak FMP Series 2 10 – – 50000000 50.00
Kotak FMP Series 26 10 – – 15000000 15.00
LIC MF Fixed Maturity Plan – Series IV 10 – – 10000000 10.00
Principal Pnb Fixed Maturity Plan Series I 10 – – 34000000 34.00
Principal Pnb Fixed Maturity Plan Series I 10 – – 15000000 15.00
Principal Pnb Fixed Maturity Plan Series II 10 – – 20000000 20.00
Principal Pnb Fixed Maturity Plan Series II 10 – – 22000000 22.00
Reliance Fixed Horizon Fund I Series I 10 – – 50000000 50.00
Reliance Fixed Horizon Fund I Series II 10 – – 70000000 70.00
Standard Chartered Grindlays Fixed Maturity Plan Annual 20th Plan 10 – – 10000000 10.00
Standard Chartered Grindlays Fixed Maturity 20th Plan 10 – – 10000000 10.00
Standard Chartered Grindlays Fixed Maturity Plan – 22 10 – – 20000000 20.00


Rs. in crore
2007-08 2006-07
|
Tata Fixed Horizon Fund – Series 2 – Plan B 10 – – 5000000 5.00

Tata Fixed Horizon Fund – Series 2 – Plan C 10 – – 25000000 25.00
Tata Fixed Horizon Fund – Series 3 – Scheme C 10 – – 35000000 35.00
Tata Fixed Horizon Fund – Series 3 – Scheme D 10 – – 10000000 10.00
Tata Fixed Horizon Fund – Series 3 – Scheme F 10 – – 30000000 30.00
Tata Fixed Horizon Fund – Series 6 – Scheme A 10 – – 40000000 40.00
Tata Fixed Horizon Fund – Series 3 – Scheme G 10 – – 40000000 40.00
UTI – Fixed Term Income Fund – Series I 10 – – 15000000 15.00
UTI – Fixed Term Income Fund- Series I – Plan 18 10 – – 19000000 19.00
UTI Fixed Maturity Plan – August 2006 10 – – 50000000 50.00
UTI Fixed Maturity Plan – June 2006 10 – – 40000000 40.00
6,331.06 4,403.29
Aggregate of unquoted investments at book value 6,332.45 4,403.30
1 Refer note number 6 of schedule 18 (B)
5. INVESTMENTS – Non trade and unquoted unless stated otherwise continued

Following Investments purchased and sold during the year
2007-08 2006-07
|
Purchased Sold Purchased Sold
units units units units
a) Equity Shares of Company

Madanpur South Coal Company Limited – joint venture 120001 0 10000 0
b) Units in Mutual Fund
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan A 10000000 – – –
ABN AMRO Interval Fund Quarterly Plan H 20346715 20346715 – –
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan E 25000000 – – –
ABN AMRO Fixed Term Plan – Series 7 – Quarterly Plan D 25520962 25520962 – –
ABN AMRO Interval Fund Quarterly Plan – Series G 26370941 26370941 – –
ABN AMRO Fixed Term Plan – Series 8 – Yearly Plan D 32439600 – – –
ABN AMRO Flexible Short Term Plan – Series E 36178561 36178561 – –
ABN AMRO Interval Fund – Monthly Plan A 36642373 36642373 – –
ABN AMRO Flexible Short Term Plan – Series B 36642373 – – –
ABN AMRO Cash Fund – Institutional Plus 60009146 60009146 224143289 224143289
ABN AMRO Money Plus IP Fund 105834795 105834795 – –
ABN AMRO Fixed Term Plan – Series 1 – 15 Months – 40000000 – –
ABN AMRO Fixed Term Plan – Series 3 – Yearly Plan (August 2006) – 30000000 30000000 –
ABN AMRO Fixed Term Plan – Series 2 – 13 months – 10000000 – –
Birla Fixed Term Plan – Series AC 5000000 – – –
Birla Fixed Maturity Plan – Quarterly Series 20 10000000 10000000 – –
Birla Fixed Term Plan – Series AJ 10000000 – – –
Birla Fixed Term Plan Quarterly Series 23 10000000 10000000 – –
Birla Fixed Term Plan – Series AE 10000000 – – –
Birla Fixed Term Plan – Series X (370 days) 15000000 – – –

FINANCIALS

Following Investments purchased and sold during the year continued
2007-08 2006-07
|
Birla Fixed Term Plan – Series AD 18000000 – – –

Birla Fixed Term Plan – Series AA 20000000 – – –
Birla Fixed Term Plan – Series AB 25000000 – – –
Birla Sunlife Liquid Plus Institutional Plan 29329345 29329345 – –
Birla Fixed Maturity Plan – Quarterly Series 2 29934444 29934444 – –
Birla Fixed Term Plan – Quarterly Series 13 30000000 30000000 – –
Birla Sunlife Income Fund 33717996 33717996 – –
BSL Interval Income Fund – INSTL – Quarterly – Series 2 – Dividend – Payout 35000000 35000000 – –
Birla Sun Life Interval Income Fund – Quarterly Plan – Series I 35202231 – – –
Birla Income Plus 47744174 47744174 – –
Birla Fixed Term Plan – Series AN 100000000 – – –
Birla Sun life Interval Income Fund – Quarterly Plan Series III 101576114 – – –
Birla Sun life Short Term Fund 217881022 217881022 – –
Birla Sun life Liquid plus IP 614839122 525387765 – –
Birla Cash Plus Institutional Premium 788384776 788384776 906772284 906772284
Birla Fixed Term Plan – Series E (15 months) – 20000000 – –
Birla Fixed Term Plan – Series F (14 months) – 31000000 – –
Birla Fixed Term Plan – Series H (13 months) – 82000000 – –
DBS Chola Fixed Maturity Plan – Series 7 (Quarterly Plan III) 10000000 10000000 – –
DBS Chola Interval Fund 30399922 30399922
DBS Chola Liquid fund – Institutional 159312085 159312085
DBS Chola Freedom Income -STF -IP 161733710 161733710 43185833 43185833
DSP Merrill Lynch Fixed Term Plan- Series 3 H 100000 – – –
DSP ML Strategic Bond Fund 100134 100134 – –
DSP Merrill Lynch Liquidity Fund – Institutional – Daily Dividend 153797 153797 – –
DSP ML Liquidity Fund Institutional Plus 640163 640163 4574158 4831654
DSP Merrill Lynch Cash Plus – Institutional – Daily Dividend 1423090 1423090 – –
DSP ML Liquid Plus Fund – IP 2135289 1981453 984692 984692
DSP ML Short Term Fund 4078098 4078098 19841973 19841973
DSP ML FMP 18 month – Series 1 15000000 – – –
DSP ML FTP 3 month – Series 2 15273553 15273553 – –
DSP ML FMP 3 months – Series 6 20000000 – – –
DSP ML FMP 13 months – Series 1 45000000 – – –
DSP ML Fixed Term Plan – Series 3a – 12.5 months – 400000 – –
DWS Fixed Term Plan – Series 32 7000000 – – –
DWS Fixed Term Fund – Series 41 15000000 – – –
DWS Fixed Term Fund – Series 35 21664400 – – –
DWS Fixed Term Fund – Series 30 30000000 30000000 – –
DWS Short Maturity Fund 64277575 64277575 59112358 85319718
DWS Money Plus – Institutional Plan 397904256 397904256 584791965 584791965
DWS Insta Cash Plus Fund – Institutional Plan 497417423 497417423 685071676 685071676
DWS Credit Opportunities Cash Fund 519328586 519328586 – –
DWS Fixed Term Fund – Series 4 – 5000000 – –
DWS Fixed Income fund – Series 15 (September 2006) – 20000000 20000000 –
DWS Fixed Term Fund – Series 6-14 months – 24000000 – –
DWS Fixed Maturity Plan – Series 10 – 25000000 25000000 –
DWS Fixed Term Fund – Series 9-13 months – 37000000 – –
DWS Fixed Maturity Plan – Series 14 – 50000000 50000000 –


2007-08 2006-07
|
DWS Fixed Term Fund – Series 5- 375 days – 55161500 – –

Fidelity Short Term Income-Retail Plan – Div 4048208 4048208 – –
Fidelity Short Term Income – Inst – Div 7944865 7944865 – –
Fidelity Cash Fund 56308639 56308639 – –
Fidelity Liquid Plus Super Inst 60553861 50546001 – –
HDFC Cash Management Fund 4701502 4701502 347861394 347861394
HDFC FMP 367 D September 2007 5000000 – – –
HDFC FMP 367 D June 2007 5000000 0 – –
HDFC HIF – STP 5006079 5006079 – –
HDFC FMP 367 D 15000000 – – –
HDFC Income Fund 23835960 23835960 – –
HDFC FMP 90D December 2007 30000000 30000000 – –
HDFC Cash Management Fund – Call Plan 31429849 31429849 – –
HDFC Quarterly Interval Fund – Plan B 50000000 50000000 – –
HDFC Quarterly Interval Fund – Plan A 60807845 60807845 – –
HDFC Liquid Fund Premium Plus Plan 63139921 63139921 103692132 103692132
HDFC Short Term Plan 67170239 67170239 – –
HDFC Cash Management Fund – Savings Plan 171034562 171034562 – –
HDFC Cash management Fund – Savings Plus 351817523 286104790 – –
HDFC Fixed Maturity Plan 13 months July 2006 – 25000000 25000000 –
HDFC Fixed Maturity Plan 13 months September 2006 – 30000000 30000000 –
HDFC FMP – 13 months – 30000000 – –
HDFC FMP – 13 months June 2006 (1) – 40000000 40000000 –
HSBC Income Fund – Invtt Plan – IP 4032552 4032552 – –
HSBC Fixed Term – Series 32 10000000 – – –
HSBC FTS 31 20000000 20000000 – –
HSBC FTS 34 – 6 months 21634958 21634958 – –
HSBC FTS 29 – 6 months 32309279 32309279 – –
HSBC Interval Fund 1 32915255 32915255 – –
HSBC Liquid Plus Fund Institutional Plus Option 195720373 195720373 – –
HSBC Cash Fund Institutional Plus Option 270758986 270758986 94000614 94000614
HSBC FTS IV – 370 Days – 10000000 – –
HSBC FTS 13 – 370 Days – 30000000 – –
HSBC Fixed Term – Series 15 370 days (September 2006) – 50000000 50000000 –
HSBC FTS IX – 370 days – 50000000 50000000 –
ICICI Prudential Fixed Maturity Plan – Series 38 – One Year Plan D 10000000 – – –
ICICI Prudential Fixed Maturity Plan – Series 41 10000000 – – –
ICICI Prudential FMP – Series 42 – 16 months 15000000 – – –
ICICI Prudential Interval Fund – Annual Interval Plan III 20000000 – – –
ICICI Prudential Interval Fund – Quarterly Plan I 20333200 20333200 – –
ICICI Prudential FMP35 – One Year Plan – Instl. Div. 25000000 – – –
ICICI Prudential Interval Fund II Quarterly Interval Plan E 25000000 – – –
ICICI Prudential Interval Fund: Monthly Interval Plan II 42676408 42676408 – –
ICICI Prudential Income Fund – IP 46349385 46349385
ICICI Prudential Interval Fund – Annual Interval Plan II 50000000 – – –
ICICI Prudential Interval Fund II: Quarterly Interval Plan C 101683345 – – –

FINANCIALS

2007-08 2006-07
|
ICICI Prudential Short-term Institutional Plan 144440197 144440197 107467801 139717796

ICICI Prudential Floating Rate Plan – Plan D 144538628 144538628 879253303 879253303
ICICI Prudential Flexible Income Plan 837771474 739503467 19130994 19130994
ICICI Prudential Instl Liquid Plan – Super Instl 1081380090 1081380090 1472572810 1472572810
ICICI Prudential Fixed Maturity Plan – Series 28-16 months – 12000000 – –
ICICI Prudential Fixed Maturity Plan – Series 12 Inst – 19980020 – –
ICICI Prudential Fixed Maturity Plan – Series 25-17 months – 23343542 – –
ICICI Prudential Fixed Maturity Plan – Series 28-370 days – 60000000 – –
ICICI Prudential Hybrid FMP – 13(13 month) (August 2006) – 75000000 75000000 0
ING Vysya FMP – Series XXV 15000000 15000000 – –
ING Vysya FMP – Series 34 15040529 15040529 – –
ING Vysya FMP – Series XXX 20000000 20000000 – –
ING Fixed Maturity Fund – Series 32 40000000 – – –
ING Fixed Maturity Fund – Series XXXI 50000000 – – –
ING Vysya Income Fund – Short-term 72235381 72235381 80039598 80039598
ING Vysya Liquid Fund – Super Institutional 348508564 348508564 501885166 501885166
ING Vysya Liquid Plus Fund – Institutional Fund 406230531 354832370 – –
ING Vysya FMP – Series VII – 17000000 17000000 –
ING Vysya FMP – Series XV – 25000000 25000000 –
JM Short Term Fund – Institutional Plan 6258152 6258152 43608111 43608111
JM Fixed Maturity Fund – Series V – Quarterly Plan 5 10000000 10000000 – –
JM Arbitrage Advantage Fund – Dividend Plan 15311384 15311384 – –
JM Liquid Plus Fund – Premium 15847721 15847721 – –
JM Fixed Maturity Fund – Series VI – Q2 16400246 16400246 – –
JM Fixed Maturity Fund – Series V 25520448 25520448 – –
JM Fixed Maturity Fund – Series VI – Quarterly Plan 3 25582372 25582372 – –
JM Fixed Maturity Fund – Series VII 27004691 – – –
JM Arbitrage Advantage Fund – Growth Plan 39701103 – – –
JM Interval Fund Quarterly Plan I 41340093 41340093 – –
JM High Liquidity Super Institutional 398538671 398538671 78665608 78665608
JM Money Manager Fund Super Plus 521922476 404810464 152710114 152710114
JM Equity And Derivative Fund – Bonus – 7415958 100115434 92699476
JM High Liquidity Fund – Bonus Option – 39721505 248782059 209060554
JM Fixed Maturity Plan – Series II – 375 days – 40000000 – –
JM Equity And Derivative Fund – Growth – 52565414 0 46454586
JP Morgan India Liquid Fund 149878356 149878356 – –
JP Morgan India Liquid Plus Fund 151074268 151074268 – –
Kotak FMP 12 M – Series 1 10000000 – – –
Kotak Quarterly Interval Plan – Series 2 Rollover 15523160 15523160 – –
Kotak FMP 3 M – Series 25 20000000 20000000 – –
Kotak Quarterly Interval Plan – Series 1 20445974 20445974 – –


2007-08 2006-07
|

Kotak Quarterly Interval Plan – Series 5 53762033 – – –
Kotak Bond Short-term Plan 66851547 66851547 76118292 76118292
Kotak Quarterly Interval Plan – Series 3 76019035 76019035 – –
Kotak Liquid (Institutional Premium) 404589476 404589476 – –
Kotak Flexi Debt Fund 879064929 779485576 111078613 111078613
Kotak FMP – Series XIV – 15 months – 10000000 – –
Kotak FMP – Series 26 – 15000000 15000000 –
Kotak FMP – Series XXI – 15 months – 25000000 – –
Kotak FMP – 15 M – Series 1 – 30000000 30000000 –
Kotak FMP – Series 13 – 13 months – 40000000 – –
Kotak FMP – Series 25 -13 months – 40000000 – –
LIC MF Fixed Maturity Plan – Series IV – 15 months – 10000000 – –
Lotus India Active Income Fund – IP 5361280 5361280 – –
Lotus India Fixed Maturity Plan – 1 month – Series 1 8046600 8046600 – –
Lotus India FMP – 375 days – Series III 10000000 – – –
Lotus India FMP – 15 months – Series II 10001712 – – –
Lotus India Fixed Maturity Plan – 3 month – Series VII 10207386 10207386 – –
Lotus India FMP 3 months – Series XI 15000000 15000000 – –
Lotus India FMP 3 months – Series XVI 15254208 15254208 – –
Lotus India Quarterly Interval Fund – Plan E 15275536 15275536 – –
Lotus India FMP 3 months – Series VIII 15291198 15291198 – –
Lotus India FMP 3 months – Series XVIII 15509504 15509504 – –
Lotus India FMP 3 months – Series XIV 15546260 15546260 – –
Lotus India FMP – 375 days – Series V 15549525 – – –
Lotus India Quarterly Interval Fund – Plan F 15800813 15800813 – –
Lotus India Quarterly Interval Fund – Plan D 19101832 19101832 – –
Lotus India FMP – 3 months – Series XXII 20263482 – – –
Lotus India FMP – 375 days – Series IV 25000000 – – –
Lotus India FMP 3 months – Series XX 35519412 35519412 – –
Lotus India Short Term Plan – Institutional Plan 40634643 40634643 – –
Lotus India Liquid Plus – Institutional Plan 145078440 145078440 38440017 38440017
Lotus India Liquid Fund 148562340 148562340 68272346 68272346
Lotus India FMP – 13 months – Series II – – 5000000 –
Lotus India FMP – 14 months – Series I – – 10000000 –
Principal FMP Plan 460 days – Series IV 8000000 –
Principal Pnb Fixed Maturity Plan – 385 days – Series V 10000000 – – –
Principal Pnb Fixed Maturity Plan 385 days – Series VI 15000000 – –
Principal Floating Rate Fund SMP – Instl 16001951 16001951 619154620 619154620
Principal Income Fund – IP 52877879 52877879 – –
Principal Income Fund – Short Term Plan – Institutional Plan 71237515 71237515 – –
Principal 91 Days FMP – Series XII 75000000 75000000 – –
Principal Cash Management Fund Liquid Option Instl. Prem. Plan 667036231 667036231 – –

FINANCIALS

2007-08 2006-07
|
Principal Floating Rate Fund FMP – IP 827005624 613559929 71544063 71544063
Principal Pnb Fixed Maturity Plan 385 days – Series I – 15000000 – –
Principal Pnb Fixed Maturity Plan 460 days – Series II (August 2006) – 20000000 20000000 –
Principal Pnb Fixed Maturity Plan 385 days – Series II – 22000000 22000000 –
Principal Pnb Fixed Maturity Plan 460 days – Series I – 34000000 –
Reliance Income Fund 7464940 7464940 – –
Reliance Liquid Plus Fund – Institutional Plan 9093792 8159575 – –
Reliance Fixed Horizon Fund – VII – Series 1 15000000 – – –
Reliance Fixed Horizon Fund – IV – Series 6 20000000 – –
Reliance Fixed Horizon Fund IV – Series 1 30000000 – – –
Reliance Fixed Horizon Fund IV – Series 2 30000000 – – –
Reliance Interval Fund 31681581 31681581 – –
Reliance Interval Fund (Monthly Interval Fund Series 1) 35185561 35185561 – –
Reliance Fixed Horizon Fund – VII – Series 3 50000000 – – –
Reliance Fixed Horizon Fund – VI – Quarterly FMP – Series 1 60000000 60000000 – –
Reliance Short Term Fund 145130379 145130379 – –
Reliance Fixed Horizon Fund – III Annual Plan – Series VI 200000000 – – –
Reliance Liquidity Fund 688381949 688381949 69219386 69219386
Reliance Fixed Horizon Fund – I Annual Plan – Series I – 50000000 50000000 –
Reliance Fixed Horizon Fund – I Annual Plan II (September 2006) – 70000000 70000000 –
SBI SDFS 90 Days – 16 (October 2007) 30490530 30490530 – –
SBI SDFS 90 Days – 18 91630694 91630694 – –
SBI Debt Fund Series – 90 days – 20 101900349 – – –
Standard Chartered Liquidity Manager Fund – Plus 2258923 2258923 5904402 5904402
Standard Chartered Grindlays Super Saver Income Fund – MTP – Plan A 15195816 15195816 – –
Standard Chartered Fixed Maturity Plan – Quarterly Series 14 20000000 20000000 – –
Standard Chartered Fixed Maturity Plan – YS – 7 25000000 – – –
Standard Chartered Fixed Maturity Plan – Yearly Series 17 Plan B 30000000 – – –
Standard Chartered Fixed Maturity Plan – Yearly Series 19 Plan B 35000000 – – –
Standard Chartered Grindlays SSIF-Short Term – Plan C-Super IP 93996872 93996872 – –
Standard Chartered Grindlays Floating Rate Fund – I P-LTP – Plan B 289162212 289162212 – –
Standard Chartered Fixed Maturity 2nd Plan – 13 months – 10000000 – –
Standard Chartered Grindlays Fixed Maturity 20 Th Plan – 14 months – 10000000 – –
Standard Chartered Grindlays Fixed Maturity Plan – 22 – 15 months – 20000000 – –
TATA Treasury Manager Fund – SHIP 681962 681962 – –
TATA Liquidity Management Fund 1031739 1031739 2043690 2043690
TATA Liquid Super High Investment Fund 4106721 4106721 1696613 1696613
TATA Fixed Horizon Fund – Series 13 – Scheme C 10000000 – – –
TATA Fixed Horizon Fund – Series 13 – Scheme B 15000000 – – –
TATA Fixed Income Portfolio Fund – A3 15082719 15082719 – –
TATA Floating Rate Fund Short Term – Institutional Plan 15262937 15262937 519610333 519610333
TATA Fixed Horizon Fund Series 13 – Scheme A – IG 20000000 – – –
TATA Fixed Horizon Fund Series 14 – Scheme A 20000000 – – –
TATA Fixed Horizon Fund Series 11 – Scheme D 20340386 20340386 – –
TATA Fixed Horizon Fund Series 11 – Scheme E 20343718 20343718 – –


2007-08 2006-07
|
TATA Short Term Bond Fund 21779184 21779184 – –

TATA Fixed Horizon Fund Series 10 – Scheme D 40804261 40804261 – –
TATA Dynamic Bond Fund 44043168 44043168 – –
TATA Floating Rate Fund – LT 148637545 – – –
TATA Dynamic Bond Fund Option B 191475735 – – 2015255
TATA Floater Fund 506138022 506138022 2082011 5185771
TATA Fixed Horizon Fund Series 2 – Plan B – 5000000 – –
TATA Fixed Horizon Fund Series 3 – Scheme D – 13 months – 10000000 – –
TATA Fixed Horizon Fund Series 2 – Plan C – 25000000 – –
TATA Fixed Horizon Fund Series 3 – Scheme F – 14 months – 30000000 – –
TATA Fixed Horizon Fund Series 3 – Scheme C – 13 months – 35000000 – –
TATA Fixed Horizon Fund Series 3 – Scheme G – 18 months – 40000000 – –
TATA Fixed Horizon Fund Series 6 – Scheme A – 13 months (July 2006) – 40000000 40000000 –
Templeton India Short Term Institutional Plan – IP 3119749 3119749
Templeton India TMA Liquid – Super Institution Plan. 5703707 5703707 1888980 1888980
Templeton India IBA – Plan A 11611828 11611828
Templeton Quarterly Interval Plan – Plan B 15000000 15000000 – –
Templeton Fixed Horizon Fund – Series II – Plan B 20000000 – –
Templeton Quarterly Interval Plan – Plan C 20349258 20349258 – –
Templeton Quarterly Interval Plan – Plan A 25000000 25000000 – –
Templeton Floating Rate Income Fund LT – IP 31701556 31701556 –
Templeton Floating Rate Income Fund LT – Super IP 63923906 63923906 253530459 253530459
Templeton Floating Rate Income Fund LT – Super IP – Daily Div 783571475 783571475
UTI Liquid Cash Plan Institutional 2472746 2472746 – –
UTI Liquid Plus Fund Institutional Plan 4193449 3396229 6712475 6712475
UTI – Quarterly FMP Series QFMP/September 2007/II 20000000 20000000 – –
UTI Quarterly Interval Plan – I Fixed Income Fund 20371878 20371878 – –
UTI Bond Fund Growth 42666079 42666079 – –
UTI Quarterly FMP Series QFMP August 2007/II 43730222 43730222 – –
UTI – Fixed Income Interval Fund – Annual Interval Plan Series 3 50000000 – – –
UTI Fixed Maturity Plan – HFMP (03/08) 74559731 – –
UTI – Fixed Term Income Fund – Series I (18 months plan) – 15000000 – –
UTI – Fixed Term Income Fund – Series I – Plan 18 (18 months plan) – 19000000 – –
UTI Fixed Maturity Plan – June 06 – 40000000 40000000 –
UTI Fixed Maturity Plan – August 06 – 50000000 50000000 –
ABN AMRO Fixed Term Plan – Series 5 – 14 months – – 10000000 –
ABN AMRO Fixed Term Plan – Series 3 – Quarterly Plan A (August 2006) – – 35000000 35000000
ABN AMRO Fixed Term Plan – Series 3 – Quarterly Plan D (September 2006) – – 50000000 50000000
ABN AMRO Fixed Term Plan – Series 3 – Quarterly Plan E (October 2006) – – 50000000 50000000
ABN AMRO Fixed Term Plan – Series 3 – Quarterly Plan G (November 2006) – – 35000000 35000000
ABN AMRO Flexi Debt – – 13421429 13421429
ABN AMRO FRF LT IP Fund – – 52665303 52665303
Birla Bond Plus – Institutional – – 136358859 136358859
Birla Fixed Term Plan – Series S (400 days) – – 23000000 –
Birla Fixed Term Plan – Series T – – 200000000 –
Birla Fixed Term Plan – Series U – – 42000000 –
Birla Fixed Term Plan – Series A – – – 50000000
Birla Fixed Term Plan – Series R (400 days) (March 2007) – – 20000000 –

FINANCIALS

2007-08 2006-07
|
Birla FMP 18 months – – – 25000000

Birla FMP Annual November 2005 – – – 18687921
Birla FMP Quarterly (Series 2) (December 2006) – – 69535589 69535589
Birla FMP (Series O) (500 days) (December 2006) – – 40000000 –
DBS Chola Fixed Maturity Plan – Series 5 (Quarterly Plan II) – – 20000000 20000000
DBS Chola Fixed Maturity Plan – Series 1 (371 days). – – – 10000000
DBS Chola Fixed Maturity Plan – Series 6 (371 days). – – 30000000 –
DBS Chola Liquid fund – Super Institutional – – 39576531 39576531
DBS Chola Short Term – FRF – – 438078431 438078431
DSP Merrill Lynch Fixed Term Plan – Series 3 – – – 20000000
DSPML FTP Series 3E – – 750000 –
DWS Fixed Income fund – Series 16 (August 06) – – 20000000 20000000
DWS Fixed Income fund – Series 18 (November 06) – – 15000000 15000000
DWS Fixed Maturity Plan – Series 21 – 390 days – – 35000000 –
DWS Fixed Term Fund – 389 days – – – 5000000
DWS Fixed Term Fund – Series 24 – – 100000000 –
DWS Fixed Term Fund – Series 2 – 389 days – – – 20000000
DWS Fixed Term Fund – Series 3 – – – 15000000
DWS Fixed Term Fund – Series 13 (Quarterly September 2006) – – 15000000 15000000
HDFC Fixed Maturity 15 M March 2007 – – 45000000 –
HDFC Fixed Maturity Plan 14 M March 2007 – – 107000000 –
HDFC Fixed Maturity Plan 18 Months October 2006 – – 25000000 –
HDFC Fixed Maturity Plan 3 Months November 2006 – – 25000000 25000000
HSBC Fixed Term Series 21 – – 20000000 –
ICICI Prudential Equity & Derivatives Fund – Income Optimiser Plan – – 50000000 50000000
ICICI Prudential Fixed Maturity Plan – Series 12 Inst – – 19980020 25000000
ICICI Prudential Fixed Maturity Plan – Series 32 (3 Months) (September 2006) – – 30000000 30000000
ICICI Prudential FMP – Series 35 – 13 months Plan B – – 150000000 –
ICICI Prudential FMP – Series 37 14 month Plan – – 35000000 –
ICICI Prudential FMP – Series 32 – 1 month Plan A (November 2006) – – 25000000 25000000
ICICI Prudential FMP – Series 34 – 15 months Plan (February 2007) – – 50000000 0
ICICI Prudential Long Term Plan – – – 10637845
ICICI Prudential Sweep Cash Option – – 202252830 202252830
ING Vysya FMP Series XIV (August 2006 6 months) – – 20000000 20000000
JM Financial Fixed Maturity Fund – Series IV – (Yearly FMP) – – 15000000 0
JM Financial Fixed Maturity Fund – Series IV – (Yearly FMP) – 375 days – – 10000000 0
JM Fixed Maturity Plan YSA 2 – – 0 15000000
JM Fixed Maturity Fund Series III – Monthly Plan – – 85000000 85000000
JM Fixed Maturity Fund Series III – Monthly Plan 3 – – 15000000 15000000
JM Fixed Maturity Fund Series III – Quarterly – – 25000000 25000000
JM Fixed Maturity Fund Series III – Quarterly Plan (FMF-Q2) – – 60000000 60000000
JM Fixed Maturity Fund Series III – Quarterly Plan 4 (November 2006) – – 25000000 25000000
JM Fixed Maturity Plan Ysb 2 – – – 7000000
JM Fixed Maturity Pl – Yso1 – Growth – – – 20000000


2007-08 2006-07
|
JM Floater Fund Short Term Plan – – 234401786 234401786

JM High Liquidity Super Institutional – Premium Plan – – 378962007 378962007
Kotak Cash Plus – – 33815159 68551855
Kotak Floater – ST – – 74029044 74029044
Kotak FMP 13 M Series 1 – – 75000000 –
Kotak FMP 3 M Series 3 (September 2006) – – 20000000 20000000
Kotak FMP 3 M Series 4 (September 2006) – – 50000000 50000000
Kotak FMP 3 M Series 5 (October 2006) – – 35000000 35000000
Kotak FMP Series XVII – 3 Months – – – 10000000
Kotak Liquid Institutional Premium – – 706841387 706845846
Kotak Long Term Floater – – 168841408 168841408
LIC MF Fixed Maturity Plan – Series 1 – – – 15000000
LIC MF Liquid Fund – – 411953711 411953711
Magnum Debt Fund 13 months (March 2005) – – – 15000000
Magnum Debt Fund 15 months – – – 25000000
Principal Deposit Fund – Plan 540 days Series I (January 2007) – – 15000000 –
Principal Fixed Maturity Fund – Plan 460 days Series III (March 2007) – – 40000000 –
Principal Fixed Maturity Plan (December 2005, 3 months) – – 25000000 25000000
Principal Fixed Maturity Plan (October 05) – – – 15000000
Principal Income Fund – – 95217775 57130665
Principal Income Fund – Institutional Plan – – 2685092
Principal Income Fund – STP – Institutional – – 117933755 117933755
Principal Liquid Option – Institutional Premium Plan – – 1100285485 1100285485
Principal Pnb Fixed Maturity Plan – 385 days – Series IV – – 30000000 –
Reliance Fixed Horizon Fund – Plan B – Series IV (Quarterly August 2006) – – 25000000 25000000
Reliance Fixed Horizon Fund – I – Monthly Plan Series II (November 2006) – – 120595000 120595000
Reliance Fixed Horizon Fund – I – Monthly Plan Series IV (January 2007) – – 80000000 80000000
Reliance Fixed Horizon Fund – I – Quarterly Plan Series I (September 2006) – – 70000000 70000000
Reliance Fixed Horizon Fund – I Monthly Plan Series I (October 2006) – – 100000000 100000000
Reliance Fixed Horizon Fund – II – Annual Plan V (February 2007) – – 35000000 –
Reliance Fixed Horizon Fund – II – Monthly Plan Series I (February 2007) – – 100000000 100000000
Reliance Fixed Horizon Fund – II Annual Plan Series VI – – 150000000 –
Reliance Fixed Horizon Fund – III Annual Plan Series I – – 100000000 –
Reliance Fixed Horizon Fund – III Annual Plan Series III – – 200000000 –
Reliance Fixed Horizon Fund – III Annual Plan Series IV – – 100000000 –
Reliance Fixed Horizon Fund – II Annual Plan – Series IV (470 days, January 2007) – – 25000000 –
Reliance Fixed Maturity Fund – Series II (Quarterly Plan III) – – – 5000000
Reliance Fixed Maturity Fund Annual Plan Series I – – – 20000000
Reliance Fixed Maturity Fund Series II Annual Plan III – – – 15000000
Reliance Fixed Term Series II Annual Plan I – – – 18246124
Reliance Floating Rate Fund – – 814018160 814018160
Reliance liquid fund-cash Plan – – 419591439 419591439
Reliance Fixed Horizon Fund – Plan A – Series V (monthly August 2006) – – 100000000 100000000
Reliance Fixed Horizon Fund – Plan B – Series V – – 50000000 50000000
SBI Mutual Fund – Magnum Institutional – – 24967168 24967168
Standard Chartered GSSIF – ST – Plan C – – 21856047 21856047

FINANCIALS

2007-08 2006-07
|
Standard Chartered GSSIF – MT – – 75947432 75947432

Standard Chartered Fixed Maturity Plan – Yearly Series 3 – – 40000000 –
Standard Chartered Fixed Maturity Plan – Yearly Series 5 – – 35000000 –
TATA Fixed Horizon Fund – Series 8 Scheme B (monthly February 2007) – – 50247443 50247443
TATA Fixed Horizon Fund – Series 8 Scheme C (monthly February 2007) – – 50253937 50253937
TATA Fixed Horizon Fund Series 5 Scheme E (1 month September 2006) – – 60000000 60000000
TATA Fixed Horizon Fund Series 2 – Plan A – – – 5000000
TATA Fixed Horizon Fund Series 6 Scheme C (13 months March 2007) – – 25000000 –
TATA Fixed Horizon Fund Series 7 Scheme D (16 months December 2006) – – 15000000 –
TATA Fixed Horizon Fund Series 7 Scheme A (13 months March 2007) – – 20000000 –
TATA Fixed Horizon Fund Series 7 Scheme B (March 2007) – – 40000000 –
TATA Fixed Horizon Fund Series 8 – Plan A – – 35000000 35000000
Templeton Fixed Horizon Fund – Series I (13 months Plan) – – 105000000 –
Templeton Fixed Horizon Fund – Series I (January 2007)(15 months) – – 20000000 –
Templeton Fixed Tenure Fund – Series VII (370 days Plan) – – 50000000 –
Templeton India TMA Short Term Plan – Super Inst Plan – – 491725 491725
UTI Fixed Maturity Plan – Dec 06 (3 Months – December 2006) – – 29000000 29000000
UTI Fixed Maturity Plan – Sept 06 (3 Months – September 2006) – – 30000000 30000000
UTI Fixed Maturity Plan YFMP (0705) – – – 15000000
UTI Fixed Maturity Plan (10/05) – – – 20000000
UTI Fixed Maturity Plan Quarterly Plan (October 2006) – – 35000000 35000000
UTI Fixed Maturity Plan Quarterly Plan (November 06) – – 34000000 34000000
UTI Fixed Term Income Fund – Series II, Plan 16 – 02/07 (16 Months) – – 20000000 –
UTI Fixed Term Income Fund – YFMP (March 2007) – – 129380575 –
UTI Money Market Fund – – 98888771 98888771
UTI Bond Fund – – 997870
6. INVENTORIES
Rs. in crore
2008 2007
Stores and spares 160.44 102.79

Goods in transit 53.66 33.38
Ore 8.87 11.47
Concentrates 192.22 296.05
Stock in process 76.22 47.70
Finished goods 26.69 7.89
518.10 499.28

7. SUNDRY DEBTORS – CONSIDERED GOOD
Rs. in crore
2008 2007
Debts outstanding for less than six months

– Secured 428.77 556.56
– Unsecured 14.89 0.06
443.66 556.62
8. CASH AND BANK BALANCES
Rs. in crore
2008 2007
Cash/cheques in hand 0.30 0.32

Bank balances
a) Schedule banks:
– Current account 81.28 47.43
– Short-term deposits 1,281.20 71.95
1,362.78 119.70
9. OTHER CURRENT ASSETS
Rs. in crore
2008 2007
Interest accrued on deposits 3.00 0.69
10. LOANS AND ADVANCES – unsecured considered good unless stated otherwise
Rs. in crore
2008 2007
Loans (secured) – staff 22.05 23.90

(Secured by hypothecation of property/vehicle)
Advances recoverable in cash or in kind or for value
to be received 319.97 239.47
Deposits with government departments 41.92 41.29
Taxation (net) 0.15 –
384.09 304.66
2,711.63 1,480.95

FINANCIALS
11. CURRENT LIABILITIES AND PROVISIONS
Rs. in crore
2008 2007
Current liabilities
Sundry creditors 354.67 206.53
Advance from customers 39.07 25.52
Security and other deposits 204.00 139.88
Investor education and protection fund
– matured fixed deposits 0.08 0.08
– unpaid dividend (not due for payment) 0.70 0.77
Other liabilities 176.34 269.03
774.86 641.81
Provisions
Dividend 105.63 105.63
Corporate dividend tax 17.95 17.95
Taxation (net) – 61.37
123.58 184.95
898.44 826.76

12. OTHER INCOME
Rs. in crore
2008 2007
Interest on – gross 1
– deposits 3.91 0.43

– staff loans 1.18 1.31
– others 61.80 49.40
66.89 51.14
Dividend from current/non-trade investments 161.62 19.07
Profit on sale of current investments (net) 170.61 108.75
Adjustment to mark to market on investing financial instruments 220.74 –
Dimunition in value of current investment written back – 0.31
Rent 1.38 0.72
Profit/(Loss) on sale of fixed assets (net) 1.25 –
Provision for expenses written back 148.12 8.26
Miscellaneous income 81.02 43.02
851.63 231.27
1 Tax deducted at source Rs. 5.84 crore (2007: Rs. 3.14 crore)

13. MINING AND MANUFACTURING EXPENSES
Rs. in crore
2008 2007
Materials consumed 6.09 –

Stores, spares and components 420.93 328.73
Power and fuel 545.38 402.60
Royalty 511.05 643.81
Repairs:
– buildings 15.21 13.16
– machinery 186.60 175.40
– others 13.40 11.81
215.21 200.37
Freight on concentrate 47.69 39.63
Tolling charges – 0.88
Other factory expenses 74.08 55.02
Excise (17.70) 12.80
Amortisation 1.53 0.51
1,804.26 1,684.35
14. (ACCRETION)/DECRETION OF STOCK
Rs. in crore
2008 2007
Closing stock
Ore 8.87 11.47
Total 304.00 363.11
Opening stock
Ore 11.47 6.87
Total 363.11 306.20
(Accretion)/Decretion of stocks 59.11 (56.91)
15. EMPLOYEES’ REMUNERATION AND BENEFITS
Rs. in crore
2008 2007
Salary, wages and bonus 269.14 209.83

Voluntary retirement expenses – 9.71
Contribution to provident/other funds 20.27 17.78
Staff welfare expenses 29.82 27.48
319.23 264.80
Less: Capitalised 11.04 4.99
308.19 259.81

FINANCIALS
16. ADMINISTRATIVE AND SELLING
Rs. in crore
2008 2007
Rent 1.12 1.01

Rates and taxes 8.08 1.55
Insurance 12.29 5.62
Watch and ward 5.21 4.55
Technical consultancy 44.84 34.92
Research and development expenses:
Salary, wages and bonus 1.30 1.83
Materials and services 0.58 0.88
Others 0.60 0.46
Depreciation 0.26 0.25
2.74 3.42
Less: grants received 0.55 0.90
2.19 2.52
Directors’ fees 0.05 0.04
Directors’ travelling expenses 0.23 0.23
Auditors’ remuneration and expenses
Audit fees 0.29 0.22
Tax audit fees 0.08 0.06
Other services 0.97 0.07
Out of pocket expenses 0.03 0.03
1.37 0.38
Cost audit and expenses 0.01 0.02
Donation 2.62 4.72
Selling and distribution
– freight and forwarding 178.72 152.12
– other selling expenses 13.10 11.75
Exchange difference (net) 18.06 7.04
Loss/(profit) on sale of fixed assets (net) – 0.91
Other expenses 55.48 40.84
343.37 268.22
Less: Capitalised 15.55 2.16
327.82 266.06
17. FINANCE
Rs. in crore
2008 2007
Interest – bank (net) 3.59 21.37

Exchange difference on loan 1.12 3.98
Others 19.46 3.09
24.17 28.44

18. notes
A) Significant accounting policies
Basis of accounting
The financial statements are prepared under the historical cost convention and in accordance with applicable accounting
standards and provisions of the Companies Act, 1956.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual results and estimates are recognised in
the periods in which the results are known/materialise.
Fixed assets
Fixed assets (including research and development assets) are recognised at cost of acquisition including expenditure
up to the date of commissioning, net of cenvat. Grant received towards fixed assets is reduced from the cost of the
related assets.
Mine development expenditure includes leases, costs incurred for acquiring/developing properties/rights up to the stage
of commercial production.
Impairment of fixed assets

The carrying amounts of tangible fixed assets are reviewed for impairment, if events or changes in circumstances
indicate that the carrying value of an asset may not be recoverable. If there are indicators of impairment, an assessment
is made to determine whether the asset’s carrying value exceeds its recoverable amount. Whenever the carrying value of
an asset exceeds its recoverable amount, impairment is charged to the profit and loss account.
Recoverable amounts are estimated for individual assets where feasible, otherwise to the relevant cash generating unit.
Depreciation and amortisation

Depreciation on fixed assets is provided using the straight-line method at rates prescribed under Schedule XIV of the
Companies Act, 1956 subject to the following deviations:
— Additions and disposals are reckoned on the first day and the last day of the quarter respectively;
— Individual items of plant and machinery and vehicles costing upto Rs. 25,000/- are wholly depreciated; and
— Tools, implements and instruments are written off on issue.
Intangible assets are amortised over its expected useful life.
Mine development expenditure is amortised in proportion to the annual ore raised to the remaining mineable ore
reserves. In the year of abandonment of mine, the residual mine development expenditure is written off.
Financial asset investments

Quoted financial asset investments are classified as held for trading and are initially recorded at cost then remeasured at
subsequent reporting dates to fair value. Unrealised gains and losses on financial asset investment are routed through
the income statement. Unquoted financial assets that do not have a market price and whose fair value cannot be reliably
measured are measured at cost.
Inventories
— Ore, concentrate, stock in process and finished products are valued at lower of cost and net realisable value.
— Stores and spares are valued at lower of cost and net realisable value.
— By products, aluminum scrap, chemical lead scrap, anode scrap and coke fines are valued at net realisable value.
Other scraps/residuals are not valued.
— Stock pile of moore cake, neutral sand, lime sludge, beta cake, lead sulphate, lead hydroxide and copper cadmium
cake are valued at Re.1 per MT.

FINANCIALS
18. notes continued

Revenue and expenses
Revenue on sale of products (net of volume rebates) is recognised on delivery of product and/or on passage of title to the
buyer. Sales include export benefit.
All other revenue and expenses are recognised on accrual basis. Revenue relating to interest on staff loans for
conveyance, insurance/railway claims is recognised when recoverability is certain.
Expenditure on projects is:

— capitalised when projects are crystallised; and
— written off in other cases.
Technical know how, not directly identifiable to any plans, layout of buildings/plant and machinery, etc are written off.
Expenditure relating to fixed assets not owned by Company is charged to revenue.
Prior period/prepaid expenses exceeding Rs. 0.05 crore is appropriately disclosed.
All revenue expenses on research and development are written off.
Foreign currency transactions

Transactions in foreign currency are recorded at exchange rates prevailing on the date of the transaction. Year end
balance of foreign currency transactions is translated at the year end rates. Exchange difference arising on restatement
or settlement is charged to profit and loss account.
Derivative financial instrument

In order to hedge its exposure to foreign exchange, interest rate and commodity price risks, the Company enters into
forward, option and other derivative financial instruments. The Company does not hold derivative financial instruments
for speculative purposes. Derivative financial instruments are initially recorded at their fair value on the date of the
derivative transaction and are remeasured at their fair value at subsequent balance sheet dates.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recorded in the income
statement.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in equity.
Amounts deferred to equity are recycled in the income statement in the periods when the hedged item is recognised in the
income statement.
Derivative financial instruments that do not qualify for hedge accounting are marked to market at the balance sheet date
and gains or losses are recognised in the income statement immediately.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated or exercised, or no longer
qualifies for hedge accounting. Any cumulative gain or loss on the hedging instrument recognised in equity is kept in
equity until the forecast transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to net profit or loss for the year.
Derivatives embedded in other financial instruments or other host contracts are treated as separate derivatives when
their risks and characteristics are not closely related to those of host contracts and the host contracts are not carried at
fair value with unrealised gains or losses reported in the income statement.
Borrowing costs
Borrowing costs that are attributable to the acquisition/construction of qualifying assets are capitalised as part of cost of
such asset till such time as the asset is ready for its intended use. All other borrowing costs are recognised as an expense
in the period in which they are incurred.

18. notes continued

Retirement Benefits
Contribution to defined contribution schemes such as provident fund etc are charged to the profit and loss account as
incurred. Contributions are made to a trust administered by the Company. Any deficiency in the interest declared by the
board of trustees is to be made good by the Company to bring it to the statutory limit. Gratuity and leave encashment
liabilities are accounted for on the basis of year end actuarial valuation.
Termination benefit are recognised as expense as and when incurred.
Voluntary retirement expenses

Voluntary retirement expenses are charged to the profit and loss account.
Taxation
Provision for current tax is made after taking into account rebate and relief available under the Income tax Act, 1961.
Deferred tax resulting from ‘timing difference’ between book and taxable profit is accounted for using the tax rates and
laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised
only to the extent that there is a reasonable certainty that the future taxable profit will be available against which the
deferred tax asset can be realised.
Provision for fringe benefit tax is made in accordance with the provisions of the Income tax Act, 1961.
Dividend
Interim dividend payments including tax thereon has been appropriated from profits for the year and provision is made for
proposed final dividend and tax thereon subject to consent of the shareholders at the Annual General Meeting.
Contingent liabilities
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation
as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not
recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial
statements.
B) Notes
1. Contingent liability:
Rs. in crore
2008 2007
Claims against the company not acknowledged as debts

– Suppliers and contractors 46.19 27.95
– Employees, ex-employees and others 11.28 16.02
– Land tax 0.27 –
Guarantees issued by the banks 23.55 18.57
Sales tax demands 31.83 57.50
Excise duty demands 47.39 46.30
Bills discounted 327.14 207.44
Claim for compensation (CLZS land) Not ascer- Not ascer-
tainable tainable
2. Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 985.39 crore
(2007: Rs. 1,215.49 crore)
3. The title deeds are still to be executed in respect of 10.63 acres of freehold land at Vishakapatnam.
4. Additions to fixed assets and year end capital work in progress include foreign exchange loss Rs. 5.76 crore
(2007: Rs. nil)

FINANCIALS
18. notes continued

5. Joint Venture:
a The Company has access up to 31.5 million tonnes of coal as a partner in the joint venture ‘Madanpur South Coal
Company Limited’ where it holds 21.8% of ownership interest.
b Interest in joint venture:

Percentage of Percentage of
ownership ownership
Country of Interests as at Interests as at
Name incorporation 31/3/08 31/3/07
Madanpur South Coal Company Limited India 21.8 % 21.8 %
The company’s interest in these joint ventures is reported as long-term investment (Schedule 5) and stated at cost.
However, the Company’s share of each of the assets, liabilities, income and expenses, etc, (each without
elimination of the effect of transactions between the Company and the joint venture) related to its interests in these
joint ventures are:
As at As at
31/3/08 31/3/07
(Rs. in crore) (Rs. in crore)
I. Assets
1. Fixed assets 0.96 0.76
2. Current assets, loans and advances
a) Cash and bank balances 0.59 0.48
II. Liabilities
1. Share capital 1.39 0.01
2. Unsecured loan 0.28 1.33
For the For the

year ended year ended
31/3/08 31/3/07
(Rs. in crore) (Rs. in crore)
III. Income – –
IV. Expenses 0.02 0.10
6. The non-fund based facility of Rs. 200 crore (2007: Rs. 100 crore) from bank is secured by pledge of specific
investments and a subservient charge on the entire current assets, present and future.
7. Matured fixed deposits of Rs. 0.08 crore (2007: Rs. 0.08 crore) due for transfer to investor education and protection
fund have not been transferred in view of pending legal litigation between the beneficiaries.
8. Retirement benefits:
Gratuity long-term fund defined benefit plan:
The Company has constituted a trust recognised by income tax authorities for gratuity to employees, contributions to
the trust are funded with Life Insurance Corporation of India. In accordance with revised AS-15 ‘Employee Benefits’,
the Company has provided the liability on actuarial basis. As per the actuarial certificate (on which auditors have
relied), the details of the employees; benefits plan-gratuity are:
Actuarial assumptions 31.03.08 31.03.07
Salary growth 5% 5%
Discount rate 7.50% 7.50%
Expected rate of return on plan assets 9.10% 8.40%

18. notes continued

Amount recognised in the income statement Rs. in crore Rs. in crore
Current service cost 4.30 3.56

Interest cost 5.64 5.02
Expected return on plan assets (6.30) (5.21)
Net actuarial loss/(gain) recognised in the period 3.99 3.22
Total 7.63 6.59

Movement in the present value of defined benefit obligation Rs. in crore Rs. in crore
Obligation at the beginning of the year 75.29 66.94

Interest cost 5.64 5.02
Current service cost 4.31 3.56
Benefits paid (1.81) (3.56)
Actuarial loss/(gain) on obligation 4.28 3.34
Obligation at the end of the year 87.71 75.29
Movement in the present value of plan assets Rs. in crore Rs. in crore
Fair value at the beginning of the year 69.26 62.02

Expected return on plan assets 6.30 5.21
Contributions 5.96 5.48
Benefits paid (1.81) (3.56)
Actuarial loss/(gain) on plan 0.29 0.12
Funded status 80.00 69.26
Fair value Expected Fair value Expected

Expected returns on plan assets of assets return % of assets return %
Class of assets
– Life Insurance Corporation 80.00 9.10% 69.26 8.40%
Amounts recognised in the balance sheet Rs. in crore Rs. in crore
Present value of obligation at the end of the year 87.71 75.29

Fair value of plan assets at the end of the year 80.00 69.26
Funded status (7.71) (6.03)
Excess of actual over estimated 0.29 0.12
Net asset/(liability) recognised in the balance sheet (7.71) (6.03)
a) Leave encashment – short-term benefit plan

The Company has provided for the liability on the basis of acturial valuation.
9. Excise duty:
Rs. in crore
2008 2007
a) Excise duty shown as a reduction from turnover 859.14 660.23

Total 859.14 660.23
b) Excise duty charged to profit and loss account
i) difference between closing and opening stock (20.54) 11.07
ii) shortages, etc 2.84 1.73
Total (17.70) 12.80

FINANCIALS
18. notes continued

10. Earnings per share (EPS):
Particulars 2008 2007
Net profit after taxation for the year (Rs. in crore) 4396.07 4,441.81
Weighted average number of ordinary shares for Basic EPS 422,531,900 422,531,900
Nominal value of ordinary shares (in Rs.) 10/- 10/-
Basic/diluted earnings per ordinary shares (in Rs.) 104.04 105.12
11. Segment reporting

Segment information for the year ended 31 March 2008
(Rs. In Crore)
Zinc & Lead Others Unallocated Total

Particulars 31.03.08 31.03.08 31.03.08 31.03.08
Revenue
External Sales 7,845.53 32.24 – 7,877.77
Inter Segment Sales – – –
Total Revenue 7,845.53 32.24 – 7,877.77
RESULTS
Segment result 5,171.74 (9.33) 5,162.41
Unallocated Corporate Income net of unallocated Expenses 618.60
Interest Expense 24.17
Interest Income 66.89
Dividend Income 161.62
Net Profit before tax 5,985.35
Other information
Segment Assets 4,946.76 543.06 7,716.88 13,206.70
Segment Liabilities 707.22 67.25 584.04 1,358.51
Capital Expenditure 1,235.89 284.75 1,520.64
Depreciation 180.31 41.27 0.46 222.04
Non–cash expenses other than Depreciation – – – –
(ii) Information about Secondary Business Segments

India Outside India Total
Revenue by geographical market on FOB basis 5,620.29 2,257.48 7,877.77

Inter-Segment – – –
Total 5620.29 2257.48 7877.77
Carrying amount of segment assets 13113.06 93.64 13206.70

Additions to Fixed Assets 1520.64 – 1520.64

18. notes continued

(iii) Note:
a) Business Segment:
The Company is engaged in the business of mining and smelting of zinc and lead operations. The Company has also
entered into the wind energy business; however, its operations for the year are within the threshold limits
stipulated under AS-17 ‘Segment Reporting’ and hence it does not require disclosure as a separate reportable
segment. In the previous year, the company operated in a single segment of mining and smelting of zinc and lead
operations.
b) Geographical segment
The geographical segments considered for disclosure are as follows:
– Revenue within India includes sales to customers located within India and earnings in India.
– Revenue outside India includes sales to customers located outside India and earnings outside India.
12. Related party disclosures:

a) Names of related parties and description of relation:
i) Holding companies Immediate: Sterlite Opportunities and Ventures Limited

Ultimate in India: Sterlite Industries (India) Limited
Ultimate in UK: Vedanta Resources Plc UK
ii) Fellow subsidiaries Bharat Aluminum Company Limited
Sterlite Paper Limited1
Monte Cello BV1
Copper Mines of Tasmania Pty Limited1
Thalanga Copper Mines Pty Limited1
Konkola Copper Mines Plc
Sterlite Energy Limited1
Sterlite Gold Limited1
Sesa Goa Limited (acquired on 23 April 2007)
Sesa Industries Limited1 (acquired on 23 April 2007)
The Madras Aluminum Company Limited
Vedanta Aluminium Limited
iii) Associate companies India Foils Limited1
iv) Joint Venture Madanpur South Coal Company Limited
v) Key personnel Mr MS Mehta
1 No transactions during the year

FINANCIALS
18. notes continued

b) Transactions with related parties:
Holding Fellow Associate Key Joint Total
company subsidiaries companies personnel venture amount
| | | | |
Nature of transactions (Rs. in crore) 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007 2008 2007
Purchase of goods 0.06 0.05 2 2

9.94 5.00
3 3
– – – – – – 10.00 5.05
Sale of goods2 126.31 57.75 – – – – – – – – 126.31 57.75
Dividend1 137.16 137.16 – – – – – – – – 137.16 137.16
Personnel services2 29.13 22.93 – – – – – – – – 29.13 22.93
Apportionment of common
group expenses2 26.65 19.01 – – – – – – – – 26.65 19.01
Remuneration – MS Mehta – – – – – – 1.86 1.70 – – 1.86 1.70
Investment in joint venture
– Madanpur South Coal
Company Limited – – – – – – – – 0.33 1.34 0.33 1.34
Debtors balance:
Sterlite Industries (India)
Limited 1.73 – – – – – – – – – 1.73 –
Konkola Copper Mines Plc – – – 0.09 – – – – – – – 0.09
Vedanta Aluminium Limited – – 1.13 – – – – – – – 1.13 –
Sesa Goa Limited – – 0.22 – – – – – – – 0.22 –
Madanpur South Coal Company
Limited – – – – – – – – 0.28 1.33 0.28 1.33
Vedanta Resources Plc UK 0.65 – – – – – – – – – 0.65 –
Creditors balance:
Bharat Aluminium Company
Limited – – 0.71 0.44 – – – – – – 0.71 0.44
Note:
1 Represents transaction with Sterlite Opportunities and Ventures Limited
2 Represents transaction with Sterlite Industries (India) Limited
3 Represents transaction with Bharat Aluminium Company Limited
13. Financial and derivative instruments disclosure

a) The Following are the outstanding forward exchange contracts entered into by the Company as on 31 March 2008.
As on 31/3/2008 As on 31/3/2007

Currency Amount Buy/Sell Cross Currency Currency Amount Buy/Sell Cross Currency
US Dollar 115000000 Sell Indian Rupees AUD 473655 Buy Indian Rupees
Euro 843351 Buy Indian Rupees CAD 528237 Buy Indian Rupees
US Dollar 2138926 Buy Indian Rupees EURO 9140846 Buy Indian Rupees
AUD 34255 Buy Indian Rupees GBP 100000 Buy Indian Rupees
CAD 589209 Buy Indian Rupees JPY 122245485 Buy Indian Rupees
EURO 8413405 Buy US Dollar USD 26583158 Buy Indian Rupees
GBP 285030 Buy US Dollar
b) For hedging commodity related risks: zinc forwards/futures sale for 6,625 MT (2007: 49,275 MT)
– lead forwards/futures sale for 5,200 MT (2007: nil)

18. notes continued

c) All derivative and financial instruments acquired by the Company are for hedging purposes.
d) Unhedged foreign currency exposure

Rs. in crore
2008 2007
Debtors 93.64 173.47

Creditors 2.36 –
14. Deferred taxes:

Break up of deferred tax assets/liabilities:
Rs. in crore
Particulars 2008 2007
i) Deferred tax asset:

– Voluntary retirement expenditure 3.24 5.36
ii) Deferred tax liability:
– Related to fixed assets 437.57 305.47
– Expenditure on mine development – 0.52
– Others 25.35 –
Net deferred tax asset/(liability) (459.68) (300.63)
15. Intangible assets represents Rs. 98.41 crore (2007: Rs. 98.41 crore) being long term investment in equity shares of
Andhra Pradesh Gas Power Corporation Limited, Hyderabad, which entitles the company to draw power in Andhra
Pradesh for its Vishakapatnam unit. This has been amortised as a fixed asset. Amortisation for the year is Rs. 4.67
crore (2007: Rs. 4.67 crore), cumulative Rs. 33.04 crore (2007: Rs. 28.37 crore).
16. Arising from the Announcement of the Institute of Chartered Accountants of India (ICAI) on 29 March 2008, the
Company has chosen to early adopt Accounting Standard 30, Financial Instruments: Recognition and Measurement.
Coterminous with this, in the spirit of complete adoption, the Company has also implemented the consequential
limited revisions in view of AS/30 to certain Accounting Standards as have been announced by the ICAI.
As a result the Company has changed the designation and measurement of all its significant financial assets and
liabilities existing as at 1 April 2007 and:
1. The resulting gain (as adjusted for the related tax expense) has been adjusted against opening balance of general
reserves other than covered by 2 below.
2. The portion of the gain on the hedging instrument that is determined to be an effective cash flow hedge has been
recognised directly in the Hedging Reserve Account.
The adoption of this Standard has resulted in the profits for the year (after taxation) being higher by Rs. 221.25 crore
(after considering a credit of Rs. 220.74 crore on account of current investments which were hitherto being carried at
lower of cost and fair value) and the aggregate reserves being higher by Rs. 221.18 crore.

FINANCIALS
18. notes continued

17. Details of capacity and production1
Installed capacity Actual production
|
Product Unit 2008 2007 2008 2007
MAIN PRODUCT
Zinc metals MT 581,000 411,000 426,3232 348,5672
Lead metals MT 93,000 93,000 63,5663 50,1873
Power from wind energy Lakh 9,391 3,364 956 14
BY PRODUCT
Silver kg 132,000 132,000 80,405 51,296
Sulphuric acid MT 1,280,996 704,196 753,966 591,440
Cadmium metals MT 833 763 537 415
Copper cathode MT 2,100 2,100 – –
1 As certified by management
2 Includes nil MT (2007: 251 MT) of tolled zinc produced through outside smelters by conversion of own produced concentrate and net of internal consumption and
transit shortages
3 Production includes high silver lead 5,319 MT (2007: 5,634 MT)
PARTICULARS REGARDING OPENING STOCK, SALES AND CLOSING STOCK OF GOODS PRODUCED
Quantity in MT except silver,

Quantity which is kg, Value Rs. in crore
|
Unit 2008 2007 2008 2007
OPENING STOCK
Zinc metals MT 138 1,346 1.48 7.34
Lead metals MT 530 844 1.85 3.17
Silver kg 2,001 – 3.69 –
Sulphuric acid MT 5,432 24,609 0.82 3.95
Cadmium metals MT 2 7 0.05 0.10
7.89 14.56
SALES1
Zinc metals MT 425,532 349,615 6,074.85 6,549.03
Lead metals MT 58,298 44,916 832.67 385.92
Silver kg 81,982 49,295 158.31 92.00
WPP Lakh 956 14 32.24 9.41
Zinc and Lead concentrate DMT 297,214 313,299 1,277.25 1,934.56
Others 127.30 161.45
8,736.91 9,220.45
CLOSING STOCK
Zinc metals MT 912 138 4.75 1.48
Lead metals MT 902 530 3.84 1.85
Silver kg 424 2,001 0.99 3.69
Others – – 0.09 –
26.69 7.89
1 Excludes transit shortage of zinc 17 MT (2007: 160) fully recovered, internal consumption of high silver lead 4,894 MT (2007: 5,575) and transit loss 2 MT (2007: 10 MT) fully
recovered and sulphuric acid used during trial run of Roaster 68,111 MT (2007: 354 MT)

18. notes continued

18. Particulars of consumption of concentrates, stores, etc
2008 2007
|
Quantity Value Quantity Value
in MT Rs. in crore in MT Rs. in crore
a) Company’s own products

i) Zinc concentrate 860,640 778.39 683,190 625.11
ii) Lead concentrate 108,113 111.35 85,644 81.28
889.74 706.39
b) Bought out ore/concentrate
i) Remelted lead 502 6.09 – –
Total (a+b) 895.83 706.39
Value (Rs. in crore) Percentage

|
2008 2007 2008 2007
i) Ore/concentrate
Indigenous 895.83 706.39 100.00 100.00
895.83 706.39 100.00 100.00
ii) Stores and spares, components etc, consumed1
Direct consumable 420.93 328.73
Repairs and maintenance 130.27 90.10
Power generation 377.64 228.25
Research and development 0.58 0.88
Others 11.73 31.79
941.15 679.75
1 Break up of stores and spares consumed (included under respective expenses) between indigenous and imported stores is not ascertainable.
19. Payment to Directors including Chairman-Managing Director

Rs. in crore
2008 2007
a) Salary and allowances 1.06 0.86

b) Contribution to PF, pension, gratuity etc 0.09 0.08
c) Medical reimbursement and leave travel concession 0.02 0.02
d) Long-term Incentive Plan 0.69 0.74
e) Directors’ fees 0.05 0.04
1.91 1.74
20. CIF Value of imports

Rs. in crore
2008 2007
Components, stores and spare parts 187.76 145.48

Trading Material – –
Capital goods 189.66 111.65
377.42 257.13

FINANCIALS
18. notes continued

21. Expenditure in foreign currency
Rs. in crore
2008 2007
ITechnical know-how and basic engineering 57.23 23.22

Travelling expenses 0.43 0.41
Interest 1.16 24.20
22. Earning in foreign exchange

Rs. in crore
2008 2007
Export of goods on FOB basis 2257.48 4,213.58
23. Sundry creditors includes due to Micro, Small and Medium Enterprises Rs. 0.60 crore (previous year Rs. nil). The
aforesaid information is on the basis of information available with the Company from parties. There is no interest paid/
payable as at 31 March 2008
24. Vedanta Resources Plc, United Kingdom, the ultimate holding company is listed on the London Stock Exchange and for
compliance with United Kingdom regulation, its consolidated financial statements includes the restated financial
statements of Hindustan Zinc Limited as per International Financial Reporting Standards (IFRS). Additionally, Sterlite
Industries (India) Limited, the holding company, is listed in the New York Stock Exchange and for compliance with the
United States’ regulations, its consolidated financial statements includes the restated financial statements of
Hindustan Zinc Limited as per the United States Generally Accepted Practices.
25. Previous year’s figures have been regrouped and rearranged, wherever necessary.
For and on behalf of the Board of Directors:
Tarun Jain KK Kaura MS Mehta

Director Director CEO & Whole time Director
Date: 24 April 2008 SL Bajaj R Pandwal


Balance sheet abstract and company’s
general business profile
(As per schedule VI, part (iv) of the Companies Act, 1956)
i. Registration details
Registration Number 1 2 0 8 State code 1 7
Balance sheet date 3 1 0 3 2 0 0 8
ii. Capital raised during the year (Amount in Rs. Thousands)
Bonus issue N I L Rights issue N I L
Public issue N I L Private placement N I L
iii. Position of mobilisation and deployment of funds (Amount in Rs. Thousands)
Total liabilities 1 2 3 0 8 2 6 3 8 Total assets 1 2 3 0 8 2 6 3 8
Sources of funds: Application of funds:
Paid-up capital 0 0 4 2 2 5 3 1 9 Net fixed assets 0 4 1 6 2 6 1 6 9
Reserves and surplus 1 1 4 2 5 6 6 0 1 Investments 0 6 3 3 2 4 5 2 5
Secured loans N I L Net current assets 0 1 8 1 3 1 9 4 4
Unsecured loans 0 0 0 0 0 3 9 2 3 Miscellaneous expenditure N I L
Deferred Tax 0 0 4 5 9 6 7 9 5 Accumulated losses N I L
iV. Performance of company (Amount in Rs. Thousands)
Turnover 0 8 7 2 9 4 0 3 5 Total expenditure 0 2 7 4 4 0 6 1 2
Profit/loss before tax 5 9 8 5 3 4 2 3 Profit/loss after tax 0 4 3 9 6 0 7 2 1
Earning per share (Rs.) 1 0 4 . 0 4 Dividend rate (%) 5 0
V. Generic names of principal products/services of company

(As in monetary terms)
Product description Item code Number (ITC code)
Zinc not alloyed containing by weight less than 99.9% zinc 7 9 0 1 1 2 0 0
Refined lead 7 8 0 1 1 0 0 0
For and on behalf of the Board of Directors:
Tarun Jain KK Kaura MS Mehta

Director Director CEO & Whole time Director
Date: 24 April 2008 SL Bajaj R Pandwal


FINANCIALS
Financial Highlights
Rs. in crore
Particulars 2003-04 2004-05 2005-06 2006-07 2007-08
Turnover 1,841 2,202 3,877 8,560 7,878

Profit before depreciation, interest, tax (PBDIT) 660 1,018 2,418 6,639 6,231
Tax 180 272 757 2,012 1,589
Profit after tax (PAT) 405 655 1,472 4,442 4,396
Gross Block 1,852 2,855 3,048 4,135 5,647
Net Block 892 1,844 1,918 2,871 4,163
Share Capital 423 423 423 423 423
Reserves & Surplus 1,084 1,655 3,007 7,205 11,426
Net Worth 1,507 2,078 3,430 7,627 11,849
Total Debt 608 571 558 0 0
Capital Employed 2,060 2,625 3,988 7,627 11,849
Return on capital employed (%) 28.42 35.38 57.10 84.98 50.72
Earning per Share (Rs.) 9.58 15.51 34.85 105.12 104.04
Dividend per Share (Rs.) 1.40 1.75 2.50 5.00 5.00
Book Value per Share (Rs) 35.66 49.17 81.17 180.51 280.41

notes

Overview
01 Highlights
02 Hindustan Zinc at a glance
04 Our growth history
06 Chairman ’s Statement
08 Enduring Value Through Values
Business review
10 Key Performance Indicators
12 Zinc – Demand and Markets
14 Lead – Demand and Markets
18 Exploration
20 Operational Performance
20 Mining
24 Smelting
26 Projects
28 Human Resources and
Information Technology
30 Financial Performance
sustainability
34 Sustainable Development
Governance
46 Board of Directors
48 corporate information
49 Directors’ Report
53 Annexure 1
54 Form ‘A’
55 Certificate of Compliance with
the Code of Conduct Policy
56 Corporate Governance Report
65 Additional Shareholder Information
69 Certification by Chief Executive Officer
and Chief Financial Officer of
the Company
70 Auditors’ Certificate
71 Auditors’ Report
72 Annexure to the Auditors’ Report
Financials
74 Balance Sheet
75 Profit and Loss Account
76 Cash Flow Statement
77 Schedule Annexed to and forming
part of the Accounts
110 Balance Sheet Abstract and Company’s
General Business Profile
111 Financial Highlights
42ND ANNUAL REPORT 2007-08
Hindustan Zinc, a saga of
HINDUSTAN ZINC LIMITED ANNUAL REPORT 2007-08

exemplary growth with an
outstanding performance on
sustainable development, is
the World’s second largest
integrated zinc producer
ENDURING with a mining and metals
VALUE capacity of 754,000 tonnes
per annum.
THROUGH
VALUES

Yashad Bhawan
Udaipur – 313 004
Rajasthan
www.hzlindia.com
T: +91 294-2420813-15

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Hindustan Zinc Limited

42ND ANNUAL REPORT 2007-08

Hindustan Zinc, a saga of

HINDUSTAN ZINC LIMITED ANNUAL REPORT 2007-08

HINDUSTAN ZINC LIMITED

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Another year of excellent performance for Hindustan Zinc

HINDUSTAN ZINC LIMITED

1. RAMPURA AGUCHA MINE 2. SINDESAR KHURD MINE

smelting OPERATIONS POWER OPERATIONS

5. chanderiya smelter complex 5. chanderiya smelter complex

02 HINDUSTAN ZINC LIMITED

Be a world-class zinc company, creating value, leveraging

– B e a lowest cost zinc producer on a global scale,

Note: map not to scale

HINDUSTAN ZINC LIMITED

Driven by the capability of 6,359 employees,

HINDUSTAN ZINC LIMITED

2008 was another excellent year for Hindustan

06 HINDUSTAN ZINC LIMITED

During the year we undertook the Bal Awards and Recognition

HINDUSTAN ZINC LIMITED

08 HINDUSTAN ZINC LIMITED

— 34% CAGR in revenue (five years)

— Several Public Private Partnership social development projects implemented

— TERI Corporate Social Responsibility Award 2007

HINDUSTAN ZINC LIMITED

10 HINDUSTAN ZINC LIMITED

Profits before interest, taxes and depreciation (PBDIT) was PBDIT

Return on Capital Employed (ROCE or EBIT-to-capital ROCE

HINDUSTAN ZINC LIMITED

8=6GI6/;>GHIJH:D;O>C8 In terms of use of metallic elements, economies and rising production of

12 HINDUSTAN ZINC LIMITED

In Europe, predicted rise in demand in 8=6GI8/<AD76AAB:O>C8EG>8:H

The increased demand of 2008 will be &!*%%

mines are poorer in metal content and,

hence, carry greater cost per tonne of

HINDUSTAN ZINC LIMITED

The battery sector is the single largest

The remainder is used in non-battery

14 HINDUSTAN ZINC LIMITED

Global Market: Lead 8=6GI9/<AD76AAB:A:69EG>8:H

26,000 tonnes per month in the first

half of 2007 to 13,000 tonnes per month

HINDUSTAN ZINC LIMITED

The Company’s objective is to become In FY 2008, the Company drilled a total

18 HINDUSTAN ZINC LIMITED

Zinc and Lead Mine Resource and Reserve Summary

HINDUSTAN ZINC LIMITED

Hindustan Zinc is the second largest integrated

Table 1: Mining Operations, Production: 2006-07 and 2007-08

Ore mined (tonnes) Zinc concentrate (DMT) Lead concentrate (DMT)

The other three mines, viz. Sindesar

20 HINDUSTAN ZINC LIMITED

During the year, the total quantity of — Mining productivity increased by

HINDUSTAN ZINC LIMITED

the fastest global

Smelting Exchange (LME) registration for zinc

At the beginning of 2007-08, Hindustan Table 2: Capacity of Metals (tonnes)

Table 3: Production of Metals (tonnes)

Saleable metal Saleable zinc Saleable lead

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