Document:

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                                                                   Exhibit 10.34

                         LETTER OF CONTINUING GUARANTEE
                         ------------------------------

This Letter of Continuing Guarantee is executed at Mumbai this 29 day of January
2003 by M/s. Sterlite Industries (India) Ltd., having its Registered Office at
B-10/4, Waluj MIDC Industrial Area, Waluj Dist. Aurangabad - 431 133,
Maharashtra, India hereinafter called "the GUARANTOR" (which expression shall,
unless it be repugnant to the context or meaning thereof shall mean and include
its successors) of the one part and HDFC BANK LTD., a Banking Company
incorporated and registered under the provisions of the Companies Act, 1956,
havings its registered office at Sandoz House, Dr. Annie Besant Road, Worli,
Mumbai - 400 018 and its branch office at 751-B, Mariam Centre, Anna Salai,
Chennai - 600 002, hereinafter called "the BANK" (which expression shall unless
it be repugnant to the context or meaning thereof mean and include its
successors and assigns) of the other part:
<PAGE>
WHEREAS:

(i)  All the request of the Guarantor the Bank has granted/agreed to grant to
     The Madras Aluminium Company Ltd., (hereinafter referred to as "the
     borrower" the following Credit facilities viz.:

     a)   Non Convertible Debentures/Short Term Loans
     b)   Working Capital facilities
     totalling to Rs. 55 Crores (hereinafter collectively called the "said
     Credit Facility/ies"

(ii) One of the conditions of the Bank having agreed to grant/having granted the
     said credit Facility/ies to the Borrower was that the Guarantor shall
     execute in favour of the Bank an unconditional and irrevocable continuing
     Guarantee being these presents;
<PAGE>
          NOW THESE PRESENTS WITNESSETH as follows

     The Guarantor doth hereby irrevocably and unconditionally guarantee the due
     repayment to the Bank at its Anna Salai Branch at Chennai on demand without
     demur and/or contestation and notwithstanding any dispute between the Bank
     and the Borrower of all the amounts including the principal sum of Rs.
     55,00,00,000/- (Rupees Fifty Five Crores only) towards the said credit
     facility/ies and indebtedness due and payable by the Borrower to the Bank
     under the said credit facility/ies or any one or more or all of them or any
     part thereof for the time being outstanding under the said credit
     facility/ies granted/agreed to be granted by the Bank to the Borrower and
     all interest, commission, costs, charges and expenses and all other monies
     whatsoever due owing and payable by the Borrower to the Bank thereunder
     ("the said dues"), in the event of failure on the part of Borrower in
     repaying the same to the Bank or discharging its liability thereunder. The
     Guarantor shall pay to the Bank forthwith on first demand at its Branch
     Office at 751-B, Mariam Centre, Anna Salai, Chennai -- 600 002, the said
     dues (the decision of the Bank as to such default (failure of the Borrower
     and the amount claimed therein, being final, conclusive and binding on the
     Guarantor).

     The obligations hereunder are joint and several and independent of the
     obligations of Borrower, and a separate action or actions may be brought
     against the Guarantor alone or jointly with the Borrower.

3    In the event of the Guarantor's failure to pay to the Bank the said dues
     forthwith on demand made by the Bank then in such event, the aforesaid
     amount shall be and carry interest at the one percent over and above the
     Bank rate or such other rate as the Bank may in its absolute discretion
     stipulate, from the date of demand till payment by the Guarantor.

4.   The Guarantor hereby indemnifies the Bank and agrees to keep the Bank
     indemnified and save harmless at all times till the said credit
     facility/ies is outstanding, due and payable by the Borrower, against all
     actions, proceedings, claims and demands, duties, penalties, taxes, losses,
     damages, cost (as between Advocate and Client) charges and expenses and
     other liability whatever which may be brought and made against or sustained
     or incurred by the Bank by reason of having granted/continued/agreed to
     grant the said credit facility/ies to the Borrower.
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5.   The Bank shall be at liberty, and shall have full discretionary power
     without the Guarantor's further assent and knowledge and without in any way
     affecting the Guarantor's liability under this guarantee and the Guarantor
     hereby waives the rights available to it as surety under the applicable
     provisions of the Indian Contract Act, 1872 or its statutory modification
     or re-enactment thereof.

-    to renew change/enlarge/release the terms & conditions for grant of the
     said facility/ies or any advance, credit entered into with/granted to the
     Borrower, or

-    to hold over, renew, or give up in whole or in part, and from time to time,
     any bills, notes, mortgages, charges, liens or other securities received or
     to be received from the Borrower either alone or jointly with any other
     person or persons;

-    to vary/exchange or release any securities held or to be held by the Bank
     for the said credit facility/ies; or

-    to release or discharge the Borrower or any person liable with the Borrower
     as guarantor or otherwise, or

-    to do any act or omission the legal consequence of which is to discharge
     the Borrower or any person liable for or with the Borrower as aforesaid, or

-    to postpone for any time or from time to time the exercise of any power or
     powers conferred upon the Bank by law or otherwise and to exercise the same
     any time and in any manner and either to enforce or forbear to enforce the
     covenants or agreements entered into by the Bank with the Borrower or any
     other remedies or securities available to the Bank, or

-    to enter into any composition or compound with or promise to grant/extend
     time or any other indulgence or not to sue, either the Borrower or any
     other person liable as surety, or collaterally liable for the Borrower, as
     the Bank may deem fit,

-    And the Guarantor shall not be released by any exercise by the Bank of
     their liberty with reference to the matters aforesaid or any of them.

6.   The Guarantor shall also not be entitled to look into or consider any
     question or dispute which may arise between the Bank as the Creditor and
     the Borrower as to repayment by the Borrower to the Bank of all amounts due
     under the said facility together with all interest, costs, charges and
     expenses in respect thereof or otherwise howsoever.

7.   This Guarantee shall remain in full force and effect until the Borrower is
     fully discharged by the Bank of all the liabilities under the said credit
     facility/ies and until the Borrower has got the discharge confirmed in
     writing from the Bank.

8.   Further, this guarantee shall be a continuing guarantee and be applicable
     to the ultimate balance that may become due to the Bank from the Borrower
     under the said credit facility/ies notwithstanding that the loan account
     maintained by the Bank for the Borrower, may in the meantime or at any time
     or times have been in credit or may have disclosed a reduced or nil
     balance.
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9.   The Bank shall be entitled to retain realise or otherwise dispose off in
     such manner as the Bank may think fit any securities, now or hereafter held
     by the Bank and without liability to account to the Guarantor or any
     appropriation of such securities or of the proceeds thereof until the said
     ultimate balance shall have been satisfied.

10.  And notwithstanding the Bank receiving payments from the Borrower,
     Guarantor or any person or persons as aforesaid liable to the Bank, or from
     any security held by the Bank of the whole or any part of the amount hereby
     guaranteed, if the Borrower shall become bankrupt or insolvent or being a
     corporation or any incorporated company shall pass a resolution for
     voluntary winding-up or shall be ordered to be wound-up or shall be ordered
     to be wound-up by an order of the court,or shall enter into any arrangement
     scheme including rehabilitation scheme approved by Banks/Financial
     institutions/BIFR etc., compromise with its creditor or creditors, the Bank
     shall be at liberty without discharging the Guarantors liability to make or
     assent to any compromises, compositions or arrangements and to rank as
     creditors for the Bank's total claim hereunder and to receive dividends,
     composition or other payments thereupon to the entire exclusion and
     surrender of all the Guarantor's rights as surety/sureties in competition
     with the Bank, notwithstanding the statutes of bankruptcy or any rule of
     law or equity to the contrary, unless all the Bank's dues as aforesaid
     have been satisfied in full.

11.  Further, if the Guarantor now have or shall hereafter take any security
     from the Borrower in respect of the Guarantor's liability under this
     guarantee, the Guarantor will not prove in the bankruptcy or insolvency or
     winding-up of the Borrower in respect thereof to the Bank's prejudice and
     such security shall stand as a security for the Bank and shall forthwith be
     deposited with the Bank.

12.  Any indebtedness of the Borrower now or hereafter held by the Guarantor is
     hereby subordinated to the indebtedness of the Borrower to the Bank; and
     such indebtedness of Borrower to Guarantor as trustee for Bank and be paid
     over to Bank on account of the indebtedness of Borrower to Bank but without
     reducing or affecting in any manner the liability of Guarantor under the
     other provisions of this guarantee.

13.  The Bank may proceed against and recover from any of the Guarantor's
     property including any credit balance or security held/to be held in
     future, by the Bank on the Guarantor's account by sale and or otherwise and
     allocate and apply the net proceeds of sale and realisation thereof and any
     other monies in the Bank's hands standing to the Guarantor's credit or
     belonging to the Guarantor's on any account whatsoever independently the
     one of the order and in such manner as the Bank may think fit in or towards
     the payment of any monies payable by the Borrower/Guarantor to the Bank
     hereunder.

14.  The Guarantor hereby undertake to do, execute and perform on demand at the
     Guarantor's cost all such acts, deeds and things as the bank may require
     for as further security or for due discharge of Guarantor's liability
     hereunder and if so required by the Bank to deposit with the bank, cash or
     any security acceptable to the Bank to cover the total liability and
     obligations under this guarantee.

15.  The Bank's decision shall be final and binding on the Guarantor in respect
     of all matters concerning the aforesaid amounts and/or these presents.
<PAGE>
16.  The Bank may enforce and recover upon this guarantee for full amount hereby
     guaranteed and interest thereon to satisfy its total claim against the
     Borrower, notwithstanding any composition as aforesaid and notwithstanding
     any other guarantee, security or remedy which the Bank may hold or be
     entitled to in respect of the sum hereby secured, and notwithstanding any
     charges for interest which may be debited in the Bank's account for the
     Borrower or in any other account for the Borrower.

17.  This guarantee shall not be affected by any change in the constitution of
     the Borrower or the Guarantor and shall not be determined or in any manner
     prejudiced by any absorption and amalgamation or re-constitution or
     alteration in the status or change in the Constitution of the Bank but
     shall ensure and be available for and by the absorbing or amalgamated or
     reconstituted or altered or changed authority or body.

18.  This guarantee shall be for Rs 55 Crores including all other guarantees
     submitted earlier for the Borrower and signed by the Guarantor.

19.  In order to give effect to this guarantee, the Bank shall be entitled to
     act as if the Guarantor is the Principal debtor to the Bank for all
     payments and convenants hereby guaranteed.

20.  The Guarantor agrees that the Guarantor shall not be entitled to claim the
     benefit of any legal consequences of any variation of any contract entered
     into by the Borrower with the Bank, the liability in respect of which is
     guaranteed by the Guarantor aforesaid.

     The absence or infirmity of borrowing powers on the part of the Borrower or
     any irregularity in the exercise thereof shall not affect the Guarantor's
     liability and any monies advanced to the Borrower shall be deemed to be due
     and owing notwithstanding such absence, infirmity or irregularity and this
     guarantee shall not be effected by any change in the name or constitution
     of the un-incorporated body or firm by death or retirement or otherwise
     howsoever.

     This guarantee shall be enforceable against the Guarantor notwithstanding
     that the securities created/to be created by the Borrower or by the
     Guarantor or any other collateral securities the Bank might obtain/have
     obtained from the Guarantor or the Borrower or any negotiable or other
     securities referred to herein or to which it may extend or be applicable
     shall at the time of proceedings being taken against the Guarantor on this
     guarantee be outstanding or unrealised.

<PAGE>
23.  In addition to all liens upon, and rights of set off against the monies,
     securities or other property of Guarantor given to the Bank by law, the
     Bank shall have a lien upon and a right of set off against, all monies,
     securities and other property of Guarantor now or hereafter in the
     possession of or on deposit with the Bank, whether held in a general or
     special account or deposit, or for safe keeping or otherwise; and every
     such lien and right of set off may be exercised without demand upon or
     notice to Guarantor. No lien or right of set off shall be deemed to have
     been waived by any act or conduct on the part of Bank, or by any neglect to
     exercise such right of set off or to enforce such lien, or by any delay in
     so doing and every rights of set off and lien shall continue in full force
     and effect until such rights of set off or lien is specifically waived or
     released by an instrument in writing executed by the Bank.

24.  The demand hereunder in writing shall be deemed to have been duly given to
     the Guarantor by the Bank, by sending the same by post addressed to the
     Guarantor at the Guarantor's Registered office hereunder written and shall
     be effectual notwithstanding any change thereof and notwithstanding notice
     thereof to the Bank, and such demand shall be deemed to have been received
     by the Guarantor 24 hours after the posting thereof and shall be sufficient
     if signed by any officer of the bank and in proving such service it shall
     be sufficient to prove that the letter containing the demand was properly
     addressed and put into the Post Office.

25.  This guarantee shall inure for the benefit of the Bank's successors and
     assigns, and shall be binding on the Guarantor, Guarantor's estate, effects
     and successors.

26.  The Guarantor specifically agrees and confirms that this Guarantee and all
     matters concerning the same or arising therefrom or relating thereto, shall
     be construed in all respects by the Laws of India and shall be subject to
     the exclusive jurisdiction of the courts at Bombay/Chennai only.

27.  It is hereby expressly agreed between the parties that even if by any act
     of legislation and/or by any act of State and/or God if Borrower's debts
     under the said credit facility/ies to the Bank are suspended or cancelled
     the Guarantor shall nevertheless be bound to pay to the Bank all the
     amounts demanded by the Bank from the Guarantor hereunder.

Dated

The Common Seal of Sterlite Industries (India) Limited was hereunto
Affixed pursuant to the Resolution of its Board Meeting held on
The 29th day of January 2003 in the presence of
Mr CV Krishnan Director and
Mr ...................... who have
In token hereof set their respective hands hereto.

/s/ CV Krishnan
(GUARANTOR)<PAGE>
                                                                   Exhibit 10.35

                         LETTER OF CONTINUING GUARANTEE
                             (CORPORATE GUARANTEE)

This Letter of Continuing Guarantee is executed at MUMBAI this 28th day of
AUGUST 2002 by STERLITE INDUSTRIES LTD. a limited company incorporated and
registered under the Companies Act, 1956, having its Registered Office at

hereinafter called "the GUARANTOR" (which expression shall, unless it be
repugnant to the context or meaning thereof shall mean and include its
successors) of the one part in favour of :

STANDARD CHARTERED BANK (formerly known as the Chartered Bank and prior to that
known as the Chartered Bank of India, Australia and China) having its Head
Office at 1 Aldermanbury Square, London EC2V 7SB and a Branch office inter-alia
in India at 58, Armenian Street, Chennai -- 600 001, hereinafter
referred to as "THE BANK" (which expression shall mean and include its
successors in title and assigns) of the other part.
<PAGE>
WHEREAS:

(1)    At the request of the Guarantor, the Bank has granted/agreed to grant/
       continued to MADRAS ALUMINIUM CO. LTD. (hereinafter referred to as "THE
       BORROWER") the following credit facility/ies viz.:

       Working Capital Demand Loan/Overdraft/Bill Discounting --
       INR 100,000,000/-

       (hereinafter (collectively) called the "SAID CREDIT FACILITY/IES") on the
       terms and conditions and securities mentioned in the Bank's Facility
       Advice Letter dated 28th May 2002 addressed to the Borrower,

(ii)   One of the conditions of the Bank having agreed to grant/continue to
       grant/having granted/continuing to grant the said Credit Facility/ies to
       the Borrower, was that the Guarantor shall execute in favour of the Bank
       an unconditional and irrevocable continuing guarantee being these
       presents.

                   NOW THESE PRESENTS WITNESSETH AS FOLLOWS :

(1)(a) The Guarantor doth hereby irrevocably and unconditionally guarantee the
       due repayment to the Bank at its Chennai Branch at 58, Armenian Street,
       Chennai -- 600 001 ("THE SAID BRANCH OFFICE") on the Bank's first demand,
       without demur and/or contestation and notwithstanding any dispute between
       the Bank and the Borrower, of all the amounts including the principal sum
       of Rs. 100,000,000/-(Rupees One hundred million only) towards the said
       Credit Facility/ies and all indebtedness due and payable by the Borrower
       to the Bank under the said Credit Facility/ies or any one or more or all
       of them or any part thereof for the time being outstanding under the said
       Credit Facility/ies granted/continued/agreed to be granted by the Bank to
       the Borrower and all interest, commission, costs, charges and expenses
       and all other moneys whatsoever due owing and payable by the Borrower to
       the Bank thereunder ("THE SAID DUES"), in the event of failure on the
       part of Borrower in repaying the same to the Bank or discharging its
       liability thereunder when the same are due and payable, The Guarantor
       shall pay to the Bank forthwith on first demand at the Bank's said Branch
       Office, the said Dues (the decision of the Bank as to such default /
       failure of the Borrower and the amount claimed there in being final,
       conclusive and binding on the Guarantor).

2.     The obligations hereunder are joint and several and independent of the
       obligations of Borrower, and a separate action or actions may be brought
       against the Guarantor alone or jointly with the Borrower.

3.     The Guarantor hereby represents and warrants to the Bank on a continuing
       basis as under :

       (a)  That the Guarantor is legally and properly organised and is in
            existence as a public/private limited company incorporated and
            registered under the provisions of the Companies Act, 1956.
<PAGE>
     (b)  That under the Memorandum and Articles of Association of the
          Guarantor, the Guarantor is empowered and authorised to execute this
          Guarantee and all other documents hereunder required to be executed
          and that it has taken and shall continue to take all necessary
          corporate and other actions for execution and performance of this
          Guarantee and/or other documents in favour of the Bank;

     (c)  That this Guarantee and all documents, hereunder as required, when
          executed by the Guarantor will be valid and binding obligations of the
          Guarantor and enforceable in accordance with their respective terms
          and the person/persons executing this Guarantee (on behalf of the
          Guarantor being a company) and any other document to be executed
          pursuant hereto, is/are duly and properly authorised to execute the
          same;

     (d)  That the Guarantor does not violate any covenants, conditions and
          stipulations under any existing agreement entered into by the
          Guarantor with any third party, by executing this Guarantee in favour
          of the Bank in the manner herein mentioned.

     (e)  That there is no action, suit, proceeding or investigation pending or
          to the knowledge of the Guarantor threatened by or against the
          Guarantor or the property of the Guarantor before any Court of Law or
          Government authority or any other competent authority which might have
          a material effect on the financial and other affairs of the Guarantor
          or which might put into question the validity, enforceability or
          performance of this Guarantor or any of its provisions.

4.   In the event of the Guarantor's failure to pay to the Bank the said Dues
     forthwith on demand made by the Bank, the aforesaid amount shall bear and
     carry interest at the rate of PLR + 2 % per annum or such other rate as
     the Bank may in its absolute discretion stipulate, from the date of demand
     till payment by the Guarantor.

5.   The Guarantor hereby indemnifies the Bank and agrees to keep the Bank
     indemnified and save harmless at all times while the said Credit
     Facility/ies is outstanding, due and payable by the Borrower, against all
     actions, proceedings, claims and demands, duties, penalties, taxes, losses,
     damages, cost (as between Advocate and Client) charges and expenses and
     other liability whatever which may be brought and made against or sustained
     or incurred by the Bank by reason of having granted/ continued/agreed to
     grant the said Credit Facility/ies to the Borrower.

6.   The Bank shall be at liberty, and shall have full discretionary power
     without the Guarantor's further assent and knowledge and without in any way
     affecting the Guarantor's liability under this guarantee and the Guarantor
     hereby waives the rights available to it as surety under the applicable
     provisions of the Indian Contract Act, 1872 or its statutory modification
     or re-enactment thereof:

-    to renew/change/enlarge/release the terms and conditions of the said Credit
     Facility/ies or any advance, credit entered into with/granted to the
     Borrower, or
-    to hold over, renew, or give up in whole or in part, and from time to time,
     any bills, notes, mortgages, charges, liens or other securities received or
     to be received from the Borrower either alone or jointly with any other
     person or persons; or

<PAGE>
-    to vary/exchange or release any securities held or to be held by the Bank
     for the said Credit Facility/ies, or
-    to release or discharge the Borrower or any person liable with the Borrower
     as guarantor or otherwise; or
-    to do any act or omission the legal consequence of which is to discharge
     the Borrower or any person liable for or with the Borrower as aforesaid; or
-    to postpone for any time or from time to time the exercise of any power or
     powers conferred upon the Bank by law or otherwise and to exercise the same
     any time and in any manner and either to enforce or forbear to enforce the
     covenants or agreements entered into by the Bank with the Borrower or any
     other remedies or securities available to the Bank; or
-    to enter into any composition or compound with or promise to grant/extend
     time or any other indulgence or not to sue, either the Borrower or any
     other person liable as surety, or collaterally liable for the Borrower, as
     the Bank may deem fit,
     And the Guarantor shall not be released by any exercise by the Bank of
     their liberty with reference to the matters aforesaid or any of them.

7.   The Guarantor shall also not be entitled to look into or consider any
     question or dispute which may arise between the Bank as the Creditor and
     the Borrower as to repayment by the Borrower to the Bank of the said Dues.

8.   This Guarantee shall remain in full force and effect until the Borrower is
     fully discharged by the Bank of all the liabilities under the said Credit
     Facility/ies and until the Borrower has got the discharge confirmed in
     writing from Bank.

9.   Further, this Guarantee shall be a continuing guarantee and be applicable
     to the ultimate balance that may become due to the Bank from the Borrower
     under the said Credit Facility/ies notwithstanding that the Facility/ies
     account/s maintained by the Bank in its books in the name of the Borrower,
     may in the meantime or at any time or times have been in credit or may have
     disclosed a reduced or nil balance.

10.  The Bank shall be entitled to retain, realise or otherwise dispose off in
     such manner as the Bank may think fit any securities, now or hereafter held
     by the Bank and without any liability to account to the Guarantor or any
     appropriation of such securities or of the proceeds thereof until the said
     ultimate balance shall have been satisfied.

11.  And Notwithstanding the Bank receiving payments from the Borrower/ the
     Guarantor or any person or persons as aforesaid liable to the Bank, or from
     any security held by the Bank of the whole or any part of the amount hereby
     guaranteed, if the Borrower shall become bankrupt or insolvent or being a
     corporation or any incorporated company shall pass a resolution for
     voluntary winding-up or shall be ordered to be wound-up by an order of the
     court, or shall enter into any arrangement scheme including rehabilitation
     scheme approved by Banks/Financial institutions/BIFR etc., compromise with
     its creditor or creditors, the Bank shall be at liberty without discharging
     the Guarantor's liability to make or assent to any compromises,
     compositions or arrangements and to rank as creditor, for the Bank's total
     claim hereunder and to receive dividends, composition or other payments
     thereupon to the entire exclusion and surrender of all the Guarantor's
     rights as surety/sureties in competition with the Bank, notwithstanding the
     statutes of bankruptcy or

<PAGE>
     any rule of law or equity to the contrary, unless all the said Dues have
     been satisfied in full.

12.  Further if the Guarantor now have or shall hereafter take any security from
     the Borrower in respect of the Guarantor's liability under this guarantee,
     the Guarantor will not prove in the bankruptcy or insolvency or winding-up
     of the Borrower in respect thereof to the Bank's prejudice and such
     security shall stand as a security for the Bank and shall forthwith be
     deposited with the Bank.

13.  Any indebtedness of the Borrower now or hereafter held by the Guarantor is
     hereby subordinated to the indebtedness of the Borrower to the Bank; and
     such indebtedness of the Borrower to the Guarantor if the Bank so request
     shall be collected, enforced and received by the Guarantor as trustee for
     the Bank and be paid over to the Bank on account of the indebtedness of the
     Borrower to the Bank but without reducing or affecting in any manner the
     liability of Guarantor under the other provisions of this Guarantee.

14.  The Bank may proceed against and recover from any of the Guarantor's
     property including any credit balance or security held / to be held in
     future, by the Bank on the Guarantor's account by sale and or otherwise and
     allocate and apply the net proceeds of sale and realisation thereof and any
     other moneys in the Bank's hands standing to the Guarantor's credit or
     belonging to the Guarantor on any account whatsoever independently the one
     of the other in such order and in such manner as the Bank may think fit in
     or towards the payment of any moneys payable by the Borrower/ Guarantor to
     the Bank hereunder.

15.  The Guarantor hereby undertake to do execute and perform on demand at the
     Guarantor's cost all such acts, deeds and things as the Bank may require as
     further security or for due discharge of the Guarantor's liability
     hereunder and if so required by the Bank to deposit with the Bank cash or
     any security acceptable to the Bank to cover the total liability and
     obligations under this Guarantee.

16.  If at the time any demand is made under this Guarantee, any amount shall be
     due or owing or payable to the Bank from the Borrower in any currency or
     currencies other than that in which any Credit Facility/ies is/are
     expressed to have been granted, then (a) the obligation of the Guarantor
     shall be to make payment in such currency or currencies but the Bank shall
     be entitled, at its discretion, to require payment either in such currency
     or currencies or in the currency of the said Credit Facility/ies, or partly
     in one way and partly in the other, and (b) the said Credit Facility/ies
     shall be treated as a limit expressed in such other currency or (if more
     than one such other currency is involved) as a limit in the aggregate
     expressed in such other currency or currencies and for this purpose the
     said limit shall be deemed to have been expressed in such other currency or
     currencies converted at the rate or respective rates of exchange to be
     determined by the Bank to be effective at the date of payment (or each
     respective payment) by the Guarantor.

17.  Each payment to be made by the Guarantor under this Guarantee shall be made
     to the Bank, in the appropriate currency in accordance with the terms
     hereof, at the same place as that applicable to the Borrower's obligation
     or at the said Branch Office or at such other place as that Bank shall
     designate. All such payments shall be made in full without set-off or
     counterclaim and free and clear of and without deduction of or withholding
     for or on
<PAGE>
     account or any tax of any nature now or hereafter imposed by any country or
     any subdivision or taxing authority thereof or therein or any federation or
     organisation of which such country is a member.

     If any such payment shall be subject to any such tax or if the Guarantor
     shall be required legally to make any such deduction or withholding, the
     Guarantor shall pay such tax, shall ensure that such payment, deduction or
     withholding will not exceed the minimum legal liability therefor and shall
     simultaneously pay to the Bank such additional amount as may be necessary
     to enable the Bank to receive, after all such payments, deductions and
     withholdings, a net amount equal to the full amount payable under this
     guarantee. If the Guarantor shall make any such payment, deduction or
     withholding the Guarantor shall within 30 days thereafter forward to the
     Bank an official receipt or other official documentation evidencing such
     payment or the payment of such deduction or withholding. As used in this
     Clause, the term "tax" includes all levies, imposts, duties, charges, fees,
     deductions, withholdings, turnover tax, transaction tax, stamp tax and any
     other restrictions or conditions resulting in a charge.

18.  The Bank's decision shall be final and binding on the Guarantor in respect
     of all matters concerning the aforesaid amounts and/or these presents.

19.  The Bank may enforce and recover upon this guarantee for full amount hereby
     guaranteed and interest thereon to satisfy its total claim against the
     Borrower, notwithstanding any composition as aforesaid and notwithstanding
     any other guarantee, security or remedy which the Bank may hold or be
     entitled to in respect of the sum hereby secured, and notwithstanding any
     charges for interest which may be debited in the Bank's account for the
     Borrower or in any other account for the Borrower.

20.  This guarantee shall not be affected by any change in the constitution of
     the Guarantor or nor shall be affected by any change in the constitution
     of the Borrower howsoever or by its absorption of or by its amalgamation
     (being a company) with any other company. Further, this guarantee shall not
     be determined or in any manner prejudiced by any absorption and
     amalgamation or re-constitution or alteration in the status or change in
     the constitution of the Bank but shall ensure and be available for the
     absorbing or amalgamated or reconstituted or altered or changed authority
     or body.

21.  This guarantee shall be in addition and not in substitution to any other
     guarantee for the Borrower signed by the Guarantor that the Bank may at
     any time hold.

22.  In order to give effect to this guarantee, the Bank shall be entitled to
     act as if the Guarantor is the Principal debtor to the Bank for all
     payments and covenants hereby guaranteed.

23.  The Guarantor agrees that the Guarantor shall not be entitled to claim the
     benefit of any consequences of any variation of any contract entered into
     by the Borrower with the Bank, the liability in respect of which is
     guaranteed by the Guarantor aforesaid.

24.  The absence or infirmity of borrowing powers on the part of the Borrower
     or any irregularity in the exercise thereof shall not affect the
     Guarantor's liability and any moneys advanced to the Borrower shall be
     deemed to be due and owing notwithstanding such
<PAGE>
     absence, infirmity or irregularity and this guarantee shall not be effected
     by any change in the name or constitution of the un-incorporated body or
     firm by death or retirement or otherwise howsoever.

25.  This guarantee shall be enforceable against the Guarantor notwithstanding
     that the securities created/to be created by the Borrower or by the
     Guarantor or any other collateral securities the Bank might obtain/have
     obtained from the Guarantor or the Borrower or any negotiable or other
     securities referred to herein or to which it may extend or be applicable
     shall at the time of proceedings being taken against the Guarantor on this
     guarantee be outstanding or unrealised.

26.  In additional to all liens upon, and rights of set off against the monies,
     securities or other property of the Guarantor given to the Bank by
     law, the Bank shall have a lien upon and a right of set off against,
     all monies, securities and other property of the Guarantor now or hereafter
     in the possession of or on deposit with the Bank, whether held in a general
     or special account or deposit, or for safe keeping or otherwise; and every
     such lien and right of set off may be exercised without demand upon or
     notice to the Guarantor. No lien or right of set off shall be deemed to
     have been waived by any act or conduct on the part of the Bank, or by any
     neglect to exercise such right of set off or to enforce such lien, or by
     any delay in so doing and every rights of set off and lien shall continue
     in full force and effect until such rights of set off or lien is
     specifically waived or released by an instrument in writing executed by
     Bank.

27.  The demand hereunder in writing shall be deemed to have been duly
     given to the Guarantor by the Bank, by sending the same by post addressed
     to the Guarantor at the Guarantor's Registered Office hereunder written and
     shall be effectual notwithstanding any change thereof and notwithstanding
     notice thereof to the Bank, and such demand shall be deemed to have been
     received by the Guarantor 24 hours after the posting thereof and shall be
     sufficient if signed by any officer of the Bank and in proving such service
     it shall be sufficient to prove that the letter containing the demand was
     properly addressed and put into the Post Office.

28.  This guarantee shall inure for the benefit of the Bank's successors and
     assigns, and shall be binding on the Guarantor, Guarantor's estate, effects
     and successors.

29.  The Guarantor shall not assign or transfer any of its rights and/or
     obligations under this Guarantee except with the prior written permission
     of the Bank. No delay in exercising or omission to exercise any right,
     power or remedy accruing/available to the Bank upon any default or
     otherwise hereunder or any other documents shall impair or prejudice any
     such right, power or remedy or shall be construed to be a waiver thereof or
     any acquiescence therein, and any single or partial exercise of any right,
     power or remedy hereunder shall not preclude the further exercise thereof
     and every right and remedy of the Bank shall continue in full force and
     effect until such right, power or remedy is specifically waived by an
     instrument in writing executed by the Bank.

30.  The Guarantor specifically agrees and confirms that this Guarantee and all
     matters concerning the same or arising therefrom or relating thereto, shall
     be construed and governed in all respects by the Laws of India and any
     matter or issues arising hereunder or
<PAGE>
     any dispute hereunder shall, at the option/discretion of the Bank, be
     subject to the non-exclusive jurisdiction of the Courts of the City of
     Chennai in India. This shall not however limit the rights of the Bank to
     take proceedings in any other Court of Competent Jurisdiction.

31.  It is hereby expressly agreed between the parties that, if by any act of
     legislation and/or by any act of State and/or God if the Borrower's debts
     under the said Credit Facility/ies to the Bank are suspended or cancelled,
     the Guarantor shall nevertheless be bound to pay to the Bank all the
     amounts demanded by the Bank from the Guarantor hereunder.

In witness whereof the common seal of the Guarantor Company has been affixed to
these presents on the day and the year hereinabove mentioned at

The Common Seal of STERLITE INDUSTRIES LTD.                              )
has been affixed hereunto pursuant to the Resolution of the Board of     )
Directors of the Company passed in their meeting dated 30-7-2002         )
                                                       ---------         )
in the presence of: NAVIN AGARWAL                                        )
                                                                         )
                                                                         )
                                                                         )
the Director/s of the Company, who has/have in token thereof, has/have   )
subscribed his/her/their respective signature/s hereto.                  )

Place: Mumbai

Date: 28.08.02

(GUARANTOR)                                 /s/ Navin Agarwal

(Not to be attested/witnessed)

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