ZINC We produce refined zinc metal which is used in a number of applications including glavanising, oxides, die castings and

alloys. We produce zinc in a variety of grades

Special High Grade (SHG) High Grade (HG) Prime Western (PW)

Our Special High Grade zinc products are LME registered products under the brand names

HZL SHG 99.995 Vedanta SHG 99.995

Special high grade and high grade zinc are available in standard ingots of 25 kgs and Jumbo ingots of 1,000 kgs each.. Prime Western is also available in the standard ingots form of 25 kgs.

Applications Of Zinc
Over 11 million tonnes of zinc is produced annually worldwide. Around 48% of the amount is used for galvanizing to protect steel from corrosion. Approximately 17% is used the production of zinc base alloys like die castings etc. Nearly 10% of the zinc is also utilized for compounds such as zinc oxide and zinc sulfate and about 11% is used in the alloys especially brass.

Galvanising:
Zinc is one of the best forms of protection against corrosion and is used extensively in building, construction, infrastructure, household appliances, automobiles, steel furniture, and more. Galvanising accounts for around 48% of global zinc usage.

Zinc Oxide:
The most widely used zinc compound, zinc oxide is used in the vulcanisation of rubber, as well as in ceramics, paints, animal feed, pharmaceuticals, and several other products and processes. A special grade of zinc oxide has long been used in photocopiers. 10% of global zinc usage is in this segment.

Die Castings:

Zinc is an ideal material for die casting and is extensively used in hardware, electrical equipments, automotive and electronic components. 17% of zinc used in the word is through Die Castings.

Alloys:
Zinc is extensively used in making alloys, especially brass, which is an alloy of copper and zinc. Alloy accounts for around 11% of global zinc usage.

Rolled Zinc:
Zinc sheets are used extensively in the building industry for roofing, flashing and weathering applications. These are also used in graphic art to make plates and blocks, as well as battery callouts and coinage.

LEAD
We produce refined lead at our Chanderiya Smelting Complex, which is LME registered under the brand name of "Vedanta 99.99". Lead metal is used in a number of applications including battery segment, lead-based pigments, and cathode ray tubes. Our refined lead metal is available in standard 24 kgs ingots.

Applications Of Lead
The battery sector is the single largest consumer of lead, accounting for around three-quarters of the demand. It can be sub-divided into the following groups: SLI (Starting-Lighting-Ignition) batteries, which currently accounts for around half of the total 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 and replacement, with replacement demand outstripping original equipment demand by about 4:1 in mature markets. Industrial batteries, which currently consumes around a quarter of the total lead produced. This sector can be split roughly 50:50 into stationary and traction batteries. Stationary batteries are principally used in back up 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. The second largest current end use of lead for non-batteryapplications, accounting for around 8% of lead consumption, is 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 Poly Vinyl Chloride (PVC) stabilisers

SILVER
We are India's largest and one of the world's leading primary silver producer. We produce refined silver at Chanderiya Smelting Complex; it is recovered as a byproduct of lead metal. We produce high quality silver bullion having a minimum purity of 98.5% to 99.5% of silver; it is casted in the form of bricks weighing 30 kgs.

Applications Of Silver
Silver is used in a number of varied applications like the most important uses of silver being the industrial and decorative uses, photography, and jewelry & silverware; together, these three categories represent more than 95 percent of annual silver consumption. Silver's unique properties restrict its substitution in most applications.

Industrial applications:
brazing alloys, electrical contacts, high capacity silver-zinc or silver-cadmium batteries, printed circuits and other electronic applications.

Other applications:
Silverware, jewellery, Silver plating, photography, Dental alloys and more.

CADMIUM
We are India's largest cadmium producer. We recover cadmium from our zinc smelting process as cadmium is mainly found in association with zinc ores. We produce high quality cadmium pencils having a minimum purity of 99.95% to 99.99% of cadmium; it is casted in the form of pencils weighing from 250 gms to 500 gms.

Applications Of Cadmium
The single most important use of cadmium is in the production of nickel-cadmium ("Ni-Cad") batteries. About three quarters of the cadmium consumed annually is used to make batteries. Cadmium is also useful in a number of other applications as paint pigments, low-temperature melting alloys, etc.

PROJECTS PLANNEDPROJECTS
In order to accomplish the mission of producing one million tonnes of metal by 2010, we have announced new projects (Phase III).

210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Rajpura Dariba 100,000 tonnes per annum Lead Smelter at Rajpura Dariba Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00 million tonnes per annum Sindesar Khurd Mine expansion from 0.30 million tonnes per annum to 1.50 million tonnes per annum Opening of a new mine at Kayar with an initial capacity of 0.30 million tonnes per annum. 2 x 80 MW Coal based Captive Power Plant at Rajpura Dariba Increase in silver production capacity from 150 tonnes per annum to 500 tonnes per annum.

Of the above projects, we have successfully commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Dariba Smelting Complex and the 1.00 million tonnes per annum concentrator at Rampura Agucha. We have also successfully commissioned 1.50 million tonnes per annum concentrator at our Silver-rich Sindesar Khurd Mine. We have commissioned 160 MW (80X2) Captive Power Plant at Dariba Smelting Complex. We are poised to exit FY 2012 with Silver production capacity of 500 tonnes. Our current Zinc-Lead metal production capacity is 964,000 tonnes per annum (879,000 tonnes of zinc and 85,000 tonnes of lead).

PROJECTS DELIVERED
FY 2011

Accelerated ramp up at Silver-rich Sindesar Khurd Mine - successfully commissioned the 1.50 million tonnes per annum concentrator. Commissioned 160 MW (80X2) Captive Power Plant at Dariba Smelting Complex, increasing the total Captive power generation capacity to 474 MW. Addition of around 48 MW in existing Wind power generation capacity. Additional 102 MW to be commissioned by September 2011

FY 2010

Rampura Agucha Mine expansion from 5.00 million tonnes per annum to 6.00 million tonnes per annum, increasing the total ore production capacity of the Company to 8.60 million tonnes per annum.

Commissioned the 210,000 tonnes per annum Hydrometallurgical Zinc Smelter at Dariba Smelting Complex, increasing the Zinc & Lead metal production capacity to 964,000 tonnes per annum (879,000 tonnes of Zinc and 85,000 tonnes of Lead)

FY 2009

Rampura Agucha Mine expansion from 3.75 million tonnes per annum to 5.00 million tonnes per annum, increasing the total mining capacity of the Company to 7.40 million tonnes per annum 88,000 tonnes per annum zinc debottlenecking completed at Chanderiya Smelting Complex & Debari Zinc Smelter making the total metal production capacity to 754,000 tonnes per annum Commissioned 80 MW Captive Power Plant at Zawar Mines Commissioned 34.4 MW Wind Energy Farms making the Company's total Wind Energy capacity to 123.2 MW.

FY 2008

Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro II) in a benchmark time of 20 months at Chanderiya Smelting Complex Commissioned 80 MW Captive Power Plant at Chanderiya Smelting Complex 5,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter Commissioned 50.4 MW of Wind Energy Farms at Gujarat

FY 2007

Sindesar Khurd Mine began production with an initial production capacity of 0.3 million tonnes per annum Commissioned 38.4 MW of Wind Energy Farms at Gujarat

FY 2006

Commissioned 170,000 tonnes per annum of Hydrometallurgical Zinc Smelter (Hydro I) at Chanderiya Smelting Complex Commissioned 2 X 77 MW Captive Power Plant at Chanderiya Smelting Complex Commissioned 50,000 tonnes per annum of Ausmelt Lead Smelter at Chanderiya Smelting Complex

FY 2005

Rampura Agucha Mine expansion from 2.30 million tonnes per annum to 3.75 million tonnes per annum

FY 2004

35,000 tonnes of zinc debottlenecking completed at Chanderiya Smelting Complex

FY 2003

32,000 tonnes of zinc debottlenecking completed at Debari Zinc Smelter and Vizag Zinc Smelter Debottlenecking of Rampura Agucha Mine from 1.37 million tonnes per annum to 2.30 million tonnes per annum

FY 1991

Commissioned 70,000 tonnes per annum of zinc and 35,000 tonnes per annum of lead Pyro metallurgical Lead-Zinc Smelter at Chanderiya Rampura Agucha Mine began production with an initial production capacity of 0.9 million tonnes per annum

KEY FINANCIALINFORMATION

Financial Highlights for FY 2011

Revenue of Rs. 9,912 Crore and PBDIT of Rs. 6,454 Crore. Highest ever production of Zinc-Lead Mined metal, Refined Zinc metal and Silver. Stable operating costs, supported by higher volumes and increased operational efficiencies. Return on capital employed (ROCE) continues to be strong at 56.06% Strong balance sheet with shareholders fund base of Rs. 22,533 Crore. Cash flow and liquid investments of Rs. 14,965 Crore. Earnings per share of Rs. 11.60.

Key Performance Indicators

FY FY FY FY FY 2011 2010 2009 2008 2007 Revenue (Rs Crore) 9,912 8,017 5,680 7,878 8,560 PBDIT (Rs Crore) 6,454 5,392 3,665 6,231 6,639 ROCE (%) 56.06%57.51%44.07%93.58%138.96% EPS (Rs) 11.60 9.56 6.45 10.40 10.51 Particulars

Definitions of Key Financial Terms

Revenue
Revenue on sale of products (net of volume rebates) is recognized on delivery of product and/or on passage of title to the buyer. Sales include export benefits. Export benefits are recognized on recognition of export sales.

ROCE (Return on Capital Employed)

ROCE (Return on Capital Employed) This is calculated on the basis of PBIT before exceptional items & other non operational incomes/expenses, net off effective tax; as a ratio of capital employed in business as at the balance sheet date. Capital employed is shareholders fund & loan funds, net off non operational net cash and investments after adjusting the non operational debt. The objective is to earn consistently a return to ensure that capital is invested efficiently and this indicator measures the efficiency of our productive capital.

PBDIT (Profit Before Depreciation Interest and Taxes)

PBDIT is a factor of volumes, prices and costs of production. This is calculated by adjusting operating profits, depreciation interest and amortisation. Our objective is to take advantage of our low cost base to achieve the best possible margins across the Businesses.

EPS (Earnings Per Share)

EPS is the net profit attributable to equity shareholders. By producing a stream of profits and EPS we will be able to pay a progressive dividend to our shareholders. EPS growth also demonstrates that our capital structure is being managed efficiently.

SHARE INFORMATION
Authorized Capital as on 31 March 2011 10,000,000,000 Paid Up Capital as on 31 March 2011 8,450,638,000 Type of share Ordinary Shares of Rs 2 each NSE Equity Symbol HINDZINC BSE Scrip Code No 500188 Bloomberg Code HZ.IN Reuters Code HZNC.BO International Securities Identification Number (ISIN) INE 267A01017

CORPORATE GOVERNANCE
Corporate Governance is the application of best management practices, compliance with the law and adherence to ethical standards to achieve the Company's objectives aimed at enhancing the shareholder's value and discharging social responsibilities. Our group companies are directed and controlled by a systematic process to enhance their wealth generating capacities. Our Governance process should ensure optimum utilisation of resources to meet the aspirations of our stakeholder's aspirations and expectations of our society. We remained resolute in our commitment to conduct business in accordance with the highest ethical standards and the soundest corporate governance practices. The Company strongly believes in achieving the objectives of enhanced shareholder's value and increased stakeholder's interest through good corporate governance. The Company has set up a three tier governance structure, which helps it in strategic decision making, operations and project implementation:

Strategic Supervision: The Board of Directors exercises overall strategic supervision to lay down strategic goals, major expansion projects, capital expenditure and business plan approvals which ensure that the Company is focused on fulfilling shareholder aspirations; Operation Management and Control: The Business Management Group comprises of functional heads and unit/plant heads steered by the COO and the CFO. It handles management and coordination through regular reviews and meetings with the objective to seek continuous improvements in the working of the Company and to harness potential. Plant/ Unit Executive Management: comprising of several strategic business units (SBUs) for overall execution and empowerment through decentralized decision making.

In India, corporate governance standards for listed companies are regulated by the Securities and Exchange Board of India (SEBI) through Clause 49 of the listing agreement of the Stock Exchanges. Hindustan Zinc Limited has adopted practices mandated in Clause 49 and has established procedures and systems that comply with it completely.

SUSTAINABILITY
Sustainable development is an integral part of our business philosophy and represents core commitment of our management and employees. The tenets, on which our sustainable development is founded, include

A well defined governance structure and policy Use of environmentally friendly technologies Environment impact assessment and sustainable practices Conservation of natural resources Transparent engagement and communication Independently verified reporting arrangements

Social, economic and institutional development of the communities where we operate.

We have been continually prioritising and emphasising the need to ensure compliance and improve our social and environmental performance. We have established stringent management systems centred on safety, health, the environment and social performance. Our focus is on nurturing leaders, conserving resources, improving health, safety and environmental performance, enhancing the quality of life and fostering innovation.

STRATEGY
Our sustainable strategy aligns with the overall business strategy and reflects a clear understanding of the needs and expectations of our key stakeholders. The key drivers of our approach are: proactive engagement with our stakeholders; attracting and retaining the best talent; our provision of a safe and healthy working environment; focus on using environmentally friendly technologies and drive to conserve natural resources. We have a set of ambitious targets to optimize our natural resources usage. Water and energy conservation performance has been promising and has exceeded our targets in some instances. Our people are our valued asset and our vision is to build a flexible, agile and flat organization with world-class capabilities and a high-performance culture. We are committed to achieving the best practices in health safety and environment at all of our sites. Our systems are well established and are regularly reviewed and monitored taking into account our own experiences and industry best practices. We believe we have a responsibility to engage with the communities in which we operate and to foster their social and economic development. These principles are embedded across the organization and are a key element of our employee training, development and performance at all levels. Through this strategy we are dedicated to meeting our sustainable development challenges. We have a well defined sustainable development framework that comprises of governance structures and policies, that act as pillars and supports our sustainable development endeavor.

VISION
Our sustainable development vision is "to be the first choice in the markets where we operate, valued by our stakeholders." Our vision reflects our understanding on sustainable development and ensures that we make savings in the long-term, and become more respected as an employer, supplier, customer, and custodian of natural resources. The key elements of our strategy include

Nurturing people Enhancing quality of life of our neighbouring community Bettering Health, Safety and Environment (HSE) performance Building trust among our stakeholders and Fostering innovation

HEALTH, SAFETY AND ENVIRONMENT

We consider Health, Safety and Environment (HSE) to be the key element for our business and philosophy. We stay committed to continuous improvement in health, safety and environment in line with our HSE policy. All of our sites have a dedicated HSE team which work closely with operational teams and advices to our site management teams. We engage specialist consultants to ensure the best possible information and further improvement across all our operations. Management of contractor's safety, water & energy conservation, solid waste management and greenhouse gas emissions reduction is becoming an increasingly important focus at all of our operations. Not just because it is right to safeguard the health of the planet for future generations, but because it also makes sound and sustainable business sense. Our efforts are built around 3 pillars:

Health: Eliminate occupational illness Safety: Provide a safe workplace Environment: Minimum harm to the environment by conserving natural resources through efficient use.

VISION
Be the world's largest and most admired Zinc-Lead & Silver Company

Mission

Enhance stakeholders value through exploration, innovation, operational excellence and sustainability Be a globally lowest cost producer Maintain market leadership and customer delight

Values
Entrepreneurship Growth Excellence Trust Sustainability