Sterlite Industries (India) Limited - Sterlite Industries India Ltd.

Contractual Obligations
The following table sets out our total future commitments to settle contractual obligations as of March 31, 2009:
Payment Due by Period
Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
(in millions)
Bank loans and borrowings Rs. 34,586 $ 679.9 Rs.20,202 $ 397.1 Rs. 9,688 $190.5 Rs. — $ — Rs.4,696 $92.3
Capital commitments 67,607 1,329.0 39,211 770.8 28,391 558.1 5 0.1 — —
Total Rs.102,193 $2,008.9 Rs.59,413 $1,167.9 Rs.38,079 $748.6 Rs. 5 $0.1 Rs.4,696 $92.3
Our total future commitments to settle contractual obligations as of March 31, 2009 were Rs. 102,193 million ($2,008.9 million),
representing a Rs. 321 million ($6.3 million) increase as compared to our total future commitments to settle contractual obligations as of
March 31, 2008.
We also have commitments to purchase copper concentrate for our copper custom smelting operations. These commitments are based on
future copper LME prices which are not ascertainable as of the date of this annual report.
Off-Balance Sheet Arrangements
In the normal course of business, we enter into certain capital commitments and also give certain financial guarantees. The aggregate
amount of indemnities and other guarantees, on which we do not expect any material losses, was Rs. 55,577 million ($1,092.5 million) as of
March 31, 2009. Details of our guarantees are set out in “— Guarantees.” Details of our capital expenditures and commitments and
contingencies are as follows:
Capital Expenditures and Commitments
Our principal financing requirements primarily include:
• capital expenditures, towards expansion of capacities in existing businesses including modernization of facilities;
• the establishment of our planned commercial power generation business;
• consolidation of our ownership in our various subsidiaries; and
• acquisitions of complementary businesses that we determine to be attractive opportunities.
The following table shows our capital expenditures spent in fiscal 2007, 2008 and 2009:
For Year Ended March 31,
2007 2008 2009
(in millions)
Capital Expenditures $588.4 $635.4 $808.1
We had significant capital commitments as of March 31, 2009 amounting to Rs. 67,607 million ($1,329.0 million) related primarily to
capacity expansion projects, including commitments amounting to Rs. 27,496 million ($540.5 million) for our new commercial power
generation business. See “Item 4. Information on the Company — B. Business Overview — Our Business — Our Zinc Business — Projects
and Developments” and “Item 4. Information on the Company — B. Business Overview — Our Business — Our Aluminum Business —
Projects and Developments.”
In response to the recent global economic conditions and a decline in commodity prices, we have reduced our planned capital expenditures
by deferring some of our expansion projects and by reducing the costs of our ongoing projects.
Contingencies
We are from time to time subject to litigation and other legal proceedings. Certain of our operating subsidiaries have been named as parties
to legal actions by third party claimants and by the Indian sales tax, excise and related tax authorities for additional sales tax, excise and
indirect duties. These claims primarily relate either to the assessable values of sales and purchases or to incomplete documentation supporting
our tax returns. The total claim related to these tax liabilities is Rs. 4,410 million ($86.7 million). We have evaluated these contingencies and
estimate that it is probable that some of these claims may result in loss contingencies and hence have recorded Rs. 101 million ($2.0 million) as
current liabilities as of March 31, 2009.
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