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

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considerations involving equity method investments. Our management is currently evaluating the impact, if any, the adoption of EITF 08-6 will have on our financial reporting and disclosures, which will become effective beginning with our first quarter of 2010. EITF 08-7, “Accounting for Defensive Intangible Assets” In November 2008, the FASB issued EITF 08-7, “Accounting for Defensive Intangible Assets,” or EITF 08-7, to clarify the accounting of acquired intangible assets in situations in which an entity does not intend to actively use the asset but intends to hold (lock up) the asset to prevent others from obtaining access to the asset (a defensive intangible asset), except for intangible assets that are used in research and development activities. Our management is currently evaluating the impact, if any, the adoption of EITF 08-7 will have on our financial reporting and disclosures, which will become effective beginning with our first quarter of 2010. 95
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES B. Compensation Compensation of Directors and Executive Officers The aggregate compensation we paid our executive directors and executive officers for fiscal 2009 was Rs. 220 million ($4.3 million), which includes Rs. 180 million ($3.5 million) paid towards salary, bonuses, allowances and non-cash payments, Rs. 26 million ($0.5 million) paid by us to Vedanta for the fair value of share options granted to our executive directors and executive officers under the Vedanta LTIP, and Rs. 14 million ($0.3 million) paid towards benefits such as contributions to the provident fund and superannuation fund. The total compensation paid to our most highly compensated executive during fiscal 2009 was Rs. 72 million ($1.4 million) (of which Rs. 59 million ($1.2 million) comprised salary, bonuses and allowances, Rs. 7 million ($0.1 million) comprised payment by us to Vedanta for the fair value of share options granted under the Vedanta LTIP, and Rs. 6 million ($0.1 million) comprised benefits such as contribution to the provident fund and superannuation fund. The following table sets forth the compensation paid to our directors and executive officers in fiscal 2009, where the disclosure of compensation is required on an individual basis in <strong>India</strong> or is otherwise publicly disclosed by us: Salary, Bonuses, Fair Value of Share Contribution to Allowances and Options granted under Provident and Name Perquisites the Vedanta LTIP Superannuation Funds (in million) Navin Agarwal Rs.59.09 Rs.6.57 Rs.6.08 Kuldip Kumar Kaura (1) 38.18 4.63 1.16 Dindayal Jalan 13.58 2.89 1.10 Mahendra Singh Mehta 14.19 2.89 0.93 Rajagopal Kishore Kumar (3) 10.20 1.80 0.88 Tarun Jain (2) 28.95 4.63 2.76 A. Thirunavukkarasu 6.76 1.35 0.37 Dilip Golani 9.29 1.66 0.51 Notes: (1) Mr. Kuldip Kumar Kaura ceased to be our Managing Director and Chief Executive Officer effective October 1, 2008 on the expiration of his employment contract. Mr. Rajagopal Kishore Kumar is our new Chief Executive Officer. (2) Resigned as Whole Time Director with effect from March 31, 2009, following which he is no longer a director of our company. However, he remains an executive officer of the company as our Director of Finance. (3) Appointed as Chief Executive Officer of SIIL with effect from October 1, 2008. The aggregate compensation paid or payable to our non-executive directors for fiscal 2009 was Rs. 5 million ($0.1 million), which comprised Rs. 1 million in sitting fees and Rs. 4 million ($0.1 million) in commissions. We adopted the Vedanta LTIP in February 2004. Under the Vedanta LTIP, our directors and executive officers will be granted share awards which will entitle them to acquire the ordinary shares of Vedanta based on the performance of Vedanta’s total shareholder return against a peer group of companies comprising the FTSE Worldwide Mining Index (excluding precious metals) measured over a three-year performance period and Vedanta’s financial performance. Outstanding Awards or Options As of March 31, 2009, our directors and executive officers as a group held awards vested under the Vedanta LTIP to acquire an aggregate of 76,415 ordinary shares of Vedanta representing approximately 0.03% of Vedanta’s share capital. The awards are exercisable at the end of the three-year performance period commencing from the date of each grant at an exercise price of $0.10 per ordinary share. The awards expire six months after their date of grant. For more information, see “— Vedanta Long-Term Incentive Plan.” Employee Benefit Plans We maintain employee benefit plans in the form of certain statutory and welfare schemes covering substantially all of our employees. As of March 31, 2009, the total amount set aside by us to provide pension, retirement or similar benefits was Rs. 711 million ($14.0 million). 96
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Yes Yes No No (Mark One) UNITED
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TABLE OF CONTENTS PAGE ITEM 4. INFO
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• Part I — Item 6. Directors, S
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Refined Copper Consumption Global c
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Indian Copper Market Background The
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The following table sets forth the
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Market Outlook Global Zinc Outlook
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Notwithstanding the rise in aluminu
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Market Outlook Global Aluminum Outl
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Consumption Although electricity ge
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Power Trading Power trading takes p
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In addition, we are expanding our a
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• India’s economic growth and p
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We utilize project monitoring and a
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Seeking further growth and acquisit
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Our Production Process Our copper b
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The following map shows the locatio
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The principal deposits in the Mt. L
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consists of a 400,000 tpa copper sm
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Once processed at the Tuticorin fac
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Lead-Zinc Mines HZL sources all of
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Principal Facilities Overview The f
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Mines Rampura Agucha The Rampura Ag
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The gross book value of the Rajpura
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Summary of Mine Reserves The follow
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The following table sets out HZL’
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Market Share and Competition HZL is
Page 55 and 56: Additional Supply of Alumina The ad
Page 57 and 58: Bauxite Mines Chhattisgarh Mines Th
Page 59 and 60: Fabrication Facility The fabricatio
Page 61 and 62: Other Raw Materials BALCO also uses
Page 63 and 64: 1,250,000 tpa Aluminum Smelter Veda
Page 65 and 66: Sterlite Energy — Talwandi Sabo I
Page 67 and 68: Call Option Over Shares in BALCO On
Page 69 and 70: mineral development on the forest,
Page 71 and 72: Water (Prevention and Control of Po
Page 73 and 74: The employer is responsible for ded
Page 75 and 76: Our net sales and operating income
Page 77 and 78: • Power. Our commercial power gen
Page 79 and 80: Copper The net sales of our copper
Page 81 and 82: Year Ended March 31, 2007 2008 2009
Page 83 and 84: In addition, the Finance Act (2 of
Page 85 and 86: Power Business We expect our future
Page 87 and 88: Results of Operations Overview Cons
Page 89 and 90: • Pursuant to the approval of the
Page 91 and 92: Aluminum Net sales to external cust
Page 93 and 94: the selling and distribution expens
Page 95 and 96: • Aluminum production increased f
Page 97 and 98: We currently expect capital expendi
Page 99 and 100: Besides existing facilities, we had
Page 101 and 102: Energy is in the process of obtaini
Page 103 and 104: Contractual Obligations The followi
Page 105: SFAS No. 161, “Disclosures about
Page 109 and 110: ITEM 19. EXHIBITS The following exh
Page 111 and 112: 4.15 Rs. 7,000 million Rupee Term F
Page 113 and 114: 4.41 Rs. 10,000 million Loan Agreem
Page 115 and 116: Exhibit 12.3 Certification of Chief
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