Decrease in total inventory of finished goods and work-in-progress The decline in zinc metal production was mainly on account

of uneven distribution of mined metal production during the year, with the second half much stronger than the first half, as per the mine plan. The zinc metal cost, without royalty, during the year, was higher by 14% in INR compared to the previous year. The increase was due to higher excavation, INR depreciation, lower acid credits and lower refined metal volume partially offset by lower power costs. Increase in net revenue from operations The Company reported net revenues from operations an increase of 11% over FY 2012, driven by augmented silver sales and INR depreciation and partially offset by lower metal prices. Increase in EBITDA The profit before depreciation, interest and taxes (PBDIT) for the current fiscal was higher by 12%, compared to the previous year, driven by higher sales and other income, partially offset by higher operating costs. Tax benefits The total tax rate for FY 2013 came up significantly lower at approx. 12%, compared to 20% in FY 2012. The decrease is primarily due to locationbased tax incentives, incentives related to captive power and wind power and tax-efficient treasury investments. Cash involvement & current ratio We exited the year with a strong liquid balance sheet on the back of our excellent cash conversion, even with the significant capital investment during the year current ratio. Increase in fixed assets The gross block during the year increased due to the on-going mining projects and other sustaining capex. Return on capital employed . The increased capital employed was basically on account of significant profit rise for the year. The ratio of sales to capital employed was 1.18 times in FY 2013, as against 1.28 times in FY 2012.

Dividend policy Each equity shareholder is entitled to dividends as and when declared by the Company. Interim Dividend is paid as and when declared by the Board. Final dividend is paid after obtaining shareholders approval. Dividends are paid in Indian Rupees. In the event of liquidation ,the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amount in proportion to their shareholding. DPS is 3.91 per share. Dividend Payout ratio 23% Dividend Payout Ratio helps in determining how well earnings support the dividend payments. 23% as Dividend Payout Ratio means company is using its resources in an efficient way.

Earnings per share of Rs.16.33. market capitalisation value stands at 51,548.89crores. This means large cap stocks. Book-To-Market Ratio is 0.57. since the value is less than 1, this means that stock is overvalued presently. Price earning ratio is 7.28. Higher P-E ratio means company is expected to grow in future. Average market P-E Ratio is 20-25 times. Comparably, HZLS growth prospects are not very high. Comparing price earning ratio with book to market ratio, we can say that company doesnt retain its earning instead it satisfies shareholders by paying higher amount of dividends. Perhaps this is why even after low price earning ratio stock is overvalued.