Resourcing India’s rise
Responsibly
India is a land of abundant resources.
Resources that help our economy
grow, and create sustainable
livelihoods for millions of people. At
Vedanta, we continue to foster long
life, structurally low cost and diverse
assets with excellent potential,
which drive our growth ambitions.
Our investments in smarter
processes, industry-leading
efficiencies, empowerment of
our people, and strong corporate
governance help us address the
nation’s growing needs for metals
and minerals.
Our strategic decisions are
supported by robust cashflows,
disciplined capital allocation and
emphasis on sustainability in
everything we do. With a resilient
and responsible business model,
we are ideally positioned to partner
India’s journey towards greater
self-reliance.
ABOUT VEDANTA LIMITED
Vedanta Limited (VEDL), a subsidiary of Vedanta Resources Limited is one of the world’s
leading natural resources companies with interests in zinc-lead-silver, oil & gas, aluminium,
power, iron ore, steel and copper, operating across India, South Africa and Australia. We
believe that large-scale environment conservation and community empowerment make our
business intrinsically strong and future ready.
VEDL REPORTING SUITE
Vedanta Limited
Sustainability Report
(SR) 2019-20
Vedanta Limited Tax
Transparency Report
(TTR) 2019-20
Information coverage:
Disclosures on triple
bottom line performance
Standards/guidelines
used: Global Reporting
Initiative (GRI) Standards
Information coverage:
Voluntary disclosure of
profits made and taxes
paid (only Indian Company
to publish a TTR)
Standards/guidelines
used: Indian Accounting
Standards (Ind AS)
Vedanta Limited
Integrated Report (IR)
and Annual Accounts
2019-20
Vedanta Limited TCFD
Report 2020
Information coverage:
Holistic disclosure of
performance and strategy
Information coverage:
Climate-related financial
disclosures
Standards/guidelines used:
International; Integrated
Reporting Framework,
Indian Accounting
Standards (Ind AS), Indian
Secretarial Standards
Standards/guidelines
used: Approach to
climate action, climate
strategy and climate risk
management
CONTENTS
Integrated
Report
Statutory
Reports
Financial
Statements
see pages 02-163
see pages 164-265
see pages 266-499
03
Integrated thinking at Vedanta
164 Directors’ report
266 Standalone financials
04 Highlights FY2021
214 Report on Corporate
372 Consolidated financials
Governance
INTRODUCTION
08 Vedanta at a Glance
10 Asset Overview
12
Investment case
16 Chairman’s statement
20 CEO’s statement
24 Key performance indicators
28 Case studies
VALUE CREATION
AND STRATEGY
38 Value creation model
40 Our strategic framework
46 Opportunity landscape
50 Risk Management
OUR BOARD
AND MANAGEMENT
62 Board of Directors
66 Management Committee
68 Executive Committee
SUSTAINABILITY AND ESG
76
Sustainability, Environmental,
Social and People
98 Governance
100 Business Responsibility
Report Mapping
108 Awards
MANAGEMENT DISCUSSION
AND ANALYSIS
114 Market Review
118 Segment Review
124 Finance Review
128 Operational Review
Read more online
at vedantalimited.com
Marching ahead
and contributing to
aatmanirbhar bharat
see pages 28
Powering the wheels
of the automotive
industry
see pages 30
Taking digital
transformation to
the next level
see pages 32
Cairn pushes the
digital envelope
farther
see pages 34
ABOUT THE REPORT
INTEGRATED THINKING AT VEDANTA
< BACK TO CONTENTS
Inspired by our values, we remain committed
to disclosing relevant information pertaining
to our material issues, with highest standards
of transparency and integrity. It is towards
this end that we continue to communicate
our annual performance and future strategy
through Integrated Reporting . This is our
fourth such report, prepared in accordance
with the International Integrated Reporting
Framework, outlined by the International
Integrated Reporting Council (IIRC).
Our journey commenced in FY2018
and we were one of the very first natural
resources companies in India to publish
an integrated report. These reports are
prepared to assist our stakeholders, primarily
the providers of financial capital, to make an
informed assessment of our ability to create
value over the short, medium and long term.
They strive to demonstrate our confidence,
capacity to grow and our ability to deliver
on set strategies that can drive significant
financial and non-financial value for everyone.
and copper. Our assets are spread across
India, South Africa and Namibia, and across
the value chain comprising exploration,
asset development, extraction, processing
and value accretion activities.
This report aims to provide a concise
explanation of VEDL’s performance,
strategy, operating model, business
outputs and outcomes using a multi-
capital approach. It includes measures
of engagement with identified material
stakeholder groups and outlines the
organisation’s governance framework,
together with our risk-mitigation strategy.
APPROACH TO MATERIALITY
This report contains information that we
believe is of interest to our stakeholders
and presents a discussion around matters
that can impact our ability to create value
over the short, medium and long term.
SCOPE AND BOUNDARY
This report covers the reporting period from
1 Apr 2020 to 31 Mar 2021 and provides
360o information on Vedanta Limited
(Vedanta, VEDL), a subsidiary of Vedanta
Resources limited.
It provides an overview of operations across
our business units, namely, zinc-lead-silver,
oil & gas, aluminium, power, iron ore, steel
APPROACH TO STAKEHOLDER
ENGAGEMENT
Our stakeholders are those individuals
or organisations who have an interest in,
and/or whose actions impact our ability
to execute our strategy. We periodically
engage with different stakeholder groups
and actively respond to their concerns
and issues.
ANNUAL ACCOUNTS
This report should be read in conjunction
with the annual accounts (page 266 to
499) to gain a complete picture of VEDL’s
financial performance. The consolidated
and standalone financial statements in our
report have been prepared in accordance
with the Indian Accounting Standards
(Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015
(as amended from time to time) and have
been independently audited by S.R. Batliboi
& Co. LLP. The Independent Auditors’ Report
for both consolidated and standalone
financials can be found on page 266 and 373
respectively.
BOARD AND MANAGEMENT
ASSURANCE
The Board of Directors and the Company’s
management acknowledge their
responsibility to ensure the integrity of
information covered in this report. They
believe, to the best of their knowledge, that
this report addresses all material issues and
presents the integrated performance of
VEDL and its impact in a fair and accurate
manner. The report has therefore been
authorised for release on 13 May 2021.
At Vedanta, we are led by an integrated thought process that powers our
decision-making and enables our consistent market success.
We are
led by
Mission
To create a leading global natural
resource Company
Values
Trust | Entrepreneurship | Innovation |
Excellence | Integrity | Care | Respect
Capitals
Building
on
Financial
capital
Natural
capital
Intellectual
capital
Manufactured
capital
Social and
relationship
capital
Human
capital
38
Material issues
Focusing
on
Enabled
by
With a
constant
eye on
Creating
consistent
value
M1
M2
M3
M4
M5
M6
M7
M8
M9 M10 M11 M12 M13
77
M
Material issue
Strategic focus
Continue
to focus on
world-class ESG
performance
40
Top risks
Augment our
reserves and
resource base
Operational
excellence
Optimise capital
allocation and
maintain strong
balance sheet
Delivering
on growth
opportunities
Megatrends and opportunities
R1
R2
R3
R4
R5
R6
R7
T1
T2
T3
T4
T5
R8
R9
R10
R11
R12
R13
T6
T7
T8
T9
T10
50
R
Risk
46
T
Trend
For shareholders,
investors and lenders
For local
communities
For employees
For industry
For governments
For civil societies
02
03
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report HIGHLIGHTS FY2021
Financial
`86,863 crore
Revenue
`27,341 crore
EBITDA
36%
EBITDA Margin
4%
30%
`12,151 crore
Profit Attributable to equity
holders (before exceptional items)
`13,821 crore
FCF post-capex
`57,028 crore
Gross Debt
`32,614 crore
Cash and Cash Equivalents
`24,414 crore
Net Debt
~19%
ROCE
AA-
Credit ratings with stable outlook,
CRISIL and India Ratings
~`34,500 crore
Contribution to the exchequer
0.9x
Net Debt/EBITDA
Operational
ZINC INDIA
ZINC INTERNATIONAL
US$1,307 per tonne
Cost of production
22% y-o-y
145 kt
production volume
in Gamsberg (FY2020: 108 kt)
0.7 million tonnes per annum
Potential production capacity of the new
product line of recovering magnetite through
its tailings in BMM
15.5 million tonnes
Highest ever ore
production
972 kt
Highest ever mined
metal production
930 kt
Refined zinc-lead
production
6% y-o-y
7% y-o-y
OIL & GAS
162 kboepd
Average gross
operated production
6% y-o-y
Capex growth projects update:
74 wells
Hooked up
during FY2021
04
~11 kboepd
Incremental volumes;
post completion of Ravva
drilling programme
< BACK TO CONTENTS
Operational
ALUMINIUM
POWER
Lowest ever APC of 7.19% at the
1,980 MW
TSPL plant in FY2021
Sustained operations with
zero import coal in FY2021
through coal substitution
scheme of GoI
1,969 kt
Highest ever aluminium
production
1,841 kt
Highest ever alumina production
from Lanjigarh refinery
2% y-o-y
US$1,347 per tonne
Lowest ever hot metal
cost of production
20% y-o-y
IRON ORE
STEEL
5 million tonnes
Production of saleable ore
at Karnataka
15% y-o-y
2.1 million tonnes
Iron ore sales in Goa
US$104 per tonne
Highest ever EBIDTA
Margin for VABs
Goa operations remain suspended during
the year due to state-wide directive from
the Hon’ble Supreme Court; continuous
engagement with stakeholders for a
resumption of mining operations is
in progress
1.19 million tonnes
Annual steel production
US$131 per tonne
Robust margin during the last
quarter (~22% EBITDA margin)
COPPER INDIA
Due legal process being followed
to achieve a sustainable restart
of operations
05
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
VEDANTA
AT A GLANCE
Vedanta Limited is one of the world’s foremost natural resources
conglomerates, with primary interests in zinc-lead-silver, iron ore, steel,
copper, aluminium, power, oil and gas. With world-class, low-cost,
long-life strategic assets based in India and Africa, we are rightly
positioned to create long-term value with superior cash flows.
70,000+
Direct and indirect
employment
Largest
Natural resources
company in India
Ranked #2
By DJSI in Asia Pacific in
the metal & mining sector
2,300+
Nand Ghars created
for social welfare
~13.6 million
tCO2e in avoided emissions
from 2012 baseline
~`2,74,000 crore
Total contribution to the national
exchequer in the past 10 years
06
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
07
VEDANTA AT A GLANCE
Enabling resource
sufficiency at scale
We cater to diverse consumer markets for their primary materials needs and are leaders in
the segments we operate in. Through our activities that generate economic, human, and
social value, we responsibly support India in its journey towards self-sufficiency.
VEDANTA IS POISED TO LEVERAGE INDIA’S
LARGE-SCALE RESOURCE PIPELINE
10 mn tonnes
Zinc reserves
5.5 bn tonnes
Iron ore reserves
5.2 bn boe
Oil & gas reserves
600 mn tonnes
Bauxite reserves
< BACK TO CONTENTS
OUR CORE VALUES
Our Core Values underpin everything we do at Vedanta. These are universal values, which guide our
behaviour, as we expand into new markets and countries.
Trust
Entrepreneurship
Innovation
Excellence
Integrity
Care
Respect
A STRUCTURE THAT SUPPORTS RESPONSIBLE, VALUE-ACCRETIVE GROWTH
VEDANTA
RESOURCES LTD
Vedanta Ltd
65.2%
Divisions of Vedanta Limited
Sesa Iron Ore
Sterlite Copper
Power (600 MW Jharsuguda)
Aluminium (Odisha aluminium
and power assets)
Cairn Oil & Gas*
Konkola Copper
Mines (KCM)
79.4%
Subsidiaries of
Vedanta Ltd
Zinc India
(HZL)
Bharat Aluminium
(BALCO)
Zinc International
(Skorpion -
100%, BMM &
Gamsberg - 74%)
Talwadi
Sabo Power
(1,980 MW)
ESL Steel
Limited
64.9%
51%
100%
100%
95.5%
Listed entities
Unlisted entities
Note: Shareholding as on May 10, 2021
* 50% of the share in the RJ Block is held by a subsidiary of Vedanta Ltd
OUR VALUE CHAIN
Exploration
We have consistently added more
to our Reserves and Resources
(‘R&R’) through brownfield and
greenfield activities. This helps us
to extend the lives of our existing
mines and oilfields.
08
Asset Development
We have a strong track record of
executing projects on time and
within budget. We take special care
to develop the resource base to
optimise production and increase
the life of the resource. We also
strategically develop processing
facilities.
Extraction
Our operations are focused on
exploring and producing metals,
extracting oil & gas and generating
power. We extract zinc-lead-
silver, iron ore, steel, copper and
aluminium. We have three operating
blocks in India producing oil & gas.
Processing
We produce refined metals by
processing and smelting extracted
minerals at our zinc, lead, silver,
copper, and aluminium smelters, and
other processing facilities in India and
Africa. For this purpose, we generate
captive power as a best practice
measure and sell any surplus power.
Value Addition
We meet market requirements
by converting the primary metals
produced into value added products
such as sheets, rods, bars, rolled
products, etc. at our zinc, aluminium
and copper businesses.
09
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report VEDANTA AT A GLANCE CONTINUED...
ASSET OVERVIEW
Vedanta is India’s largest natural resources conglomerate with leading positions in seven
key business segments.
< BACK TO CONTENTS
ZINC-LEAD-SILVER
OIL & GAS
ALUMINIUM
POWER
IRON ORE
STEEL
COPPER
~80%
Market share in India’s primary zinc
market (Hindustan Zinc Limited)
Business:
Zinc India (HZL)
Zinc International
Operates
~25%
of India’s crude oil production
Business:
Cairn India
Production Volume:
Zinc India (HZL)
715 kt
Zinc
706 t
Silver
Zinc International
203 kt
214 kt
Lead
EBITDA (In ` cr.)
12,431
Zinc India (HZL)
Zinc International
11,620 811
Production Volume:
162 kboepd
Average Daily Gross
Operated Production
EBITDA (In ` cr.)
3,206
zinc-lead producer
Asset highlights:
World’s largest fully integrated
World’s largest underground zinc-
lead mine at Rampura Agucha, India
6th largest silver producer in the
Zinc India has R&R of 448 million
tonnes with mine life of 25+ years
Zinc International has R&R of more
world
than 566.4 million tonnes supporting
mine life in excess of 30 years
HZL- Low-cost zinc producer, which
lies in the first decile of the global
zinc cost curve (2020)
Asset highlights:
World’s longest continuously heated pipeline
from Barmer to Gujarat Coast (~670 kms)
Till FY2021, to deliver the capex project, 256
New gas processing terminal construction
completed; commissioning underway
expected to add ~100 mmscfd
wells have been drilled and 149 wells hooked up
Early drilling opportunities being evaluated in
OALP - Rajasthan, Assam & Cambay regions
First well KW-2-Udip drilled in Rajasthan
Largest private sector oil & gas producer in
Executed one of the largest polymer
Footprint over a total acreage of
Gross proved and probable reserves and
EOR projects in the world
~65,000 sq km
India
Largest primary aluminium
producer in India
Business:
Aluminium smelters at
Jharsuguda & Korba (BALCO)
Alumina refinery at Lanjigarh
Volume:
1,969 kt
Aluminium
1,841 kt
Alumina
EBITDA (In ` cr.)
7,751
Asset highlights:
Largest aluminium installed
capacity in India at 2.3 mtpa
Integrated 5.7GW Power
and 2 mtpa alumina refinery
~47% market share in India
among primary aluminium
producers
Diverse product portfolio
– ingots, wire rods, primary
foundry alloy, rolled products,
billet and slab
One of the largest merchant iron
ore miners in India and one of the
largest producers and exporters of
merchant pig iron in India
2.5 mtpa
Design capacity
One of the largest copper
producers in India
Business:
Iron Ore India
Business:
Electrosteel India
Business:
Copper India
~9 GW
Power portfolio
Business:
Power assets at
Talwandi Sabo,
Jharsuguda, Korba &
Lanjigarh
Volume:
11,261
million units
Power Sales
EBITDA (In ` cr.)
1,407
Volume:
5 mn dmt
Iron ore
596 kt
Pig Iron
EBITDA (In ` cr.)
1,804
Asset highlights:
One of the largest
power producers in
the country in the
private sector*
Energy efficient,
super critical
1,980 MW power
plant at Talwandi
Sabo
Asset highlights:
Karnataka iron ore mine with
reserves of 76 million tonnes,
and life of 11 years
Value added business: 3 blast
furnaces (0.8 mtpa), 2 coke
oven batteries (0.5 mtpa) and
2 power plants (60 MW) and
one merchant coke plant of
capacity 0.1 mtpa
Production Volume:
Production Volume:
1,187 kt
Steel
101 kt
Cathod
EBITDA (In ` cr.)
871
EBITDA (In ` cr.)
(177)
Asset highlights:
Design capacity of
Largely long steel
2.5 mtpa
product
Asset highlights:
Tuticorin smelter and
refinery currently not
operational
resources of 1,229 mmboe
Application areas:
Galvanising for infrastructure and
Die-casting alloys, brass, oxides and
construction sectors
chemicals
Application areas:
Crude oil is used by
hydrocarbon refineries
Natural gas is mainly used
by the fertiliser sector
Application areas:
Power systems, automotive
sector, aerospace, building and
construction, packaging
Application areas:
2.9 GW (~37%)
commercial power
backed by Power
Purchase Agreements
4.8 GW (~63%) captive
use
Application areas:
Essential for steel making
Used in construction,
infrastructure and
automotive sectors
*including captive power generation
Application areas:
Construction,
infrastructure, transport,
energy, packaging,
appliances and industry
Product portfolio includes
pig iron, billets, TMT bars,
wire rods and ductile iron
pipes
Application areas:
Used for making cables,
transformers, castings,
motors and castings, and
alloy-based products
10
11
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report INVESTMENT CASE
Built to deliver
sustainable value
Natural resources represent an important growth engine for the Indian economy, which
is poised to grow attractively in the foreseeable future. As India’s only diversified natural
resources company, we are well placed to make a significant contribution to the nation’s
growth. Our investment strategy is focused on delivering sustainable, long-term returns
to our shareholders and creating value for our wider stakeholder fraternity.
Large, low-cost, long-life and diversified asset
base with an attractive commodity mix
Large-scale, diversified asset
portfolio, with an attractive cost
position in many core businesses,
positions us to deliver strong
margins and free cash flows
through the commodity cycle
An attractive commodity mix,
with strong fundamentals and
promising demand growth; key
focus on base metals and oil
While commodity markets suffered
during the first half of 2020 due to
COVID-19, with the base metals
sector experiencing reduced
demand from manufacturing, and oil
price suffering from severe demand
weakness owing to travel restrictions
and prolonged factory shutdowns,
the second half of the year saw
recovery, particularly in Vedanta’s
core commodities (zinc, aluminium
and oil & gas). In 2021, various
efforts to stimulate economic
growth by governments, central
banks and international institutions,
together with faster vaccine rollout
are likely to strengthen the recovery
in these commodity markets.
< BACK TO CONTENTS
Ideally positioned to capitalise on India’s growth
and natural resources potential
India’s (US$2.7 trillion economy) per capita metal consumption is significantly lower than the global
average, indicating significant headroom for growth
The government’s continued focus on infrastructure, urbanisation, and affordable housing (supported
by low interest rates regime driven by the RBI’s accommodative monetary policy) will help the economy
recover faster from the COVID-induced shock and generate strong demand for natural resources
VEDANTA’S COMPETITIVE ADVANTAGE IN INDIA
A diversified portfolio of established operations in India
A strong market position as India’s largest base metals producer and largest private sector oil producer
An operating team with an extensive track record of successful project execution
ALUMINIUM CONSUMPTION
(KG/CAPITA)
COPPER CONSUMPTION
(KG/CAPITA)
ZINC CONSUMPTION
(KG/CAPITA)
OIL CONSUMPTION
(BOE/CAPITA)
7
.
6
2
7
.
8
9
.
4
5
.
4
6
.
3
3
.
1
5
.
1
4
.
8
4
.
0
1
.
3
4
.
0
7
.
1
India
Global
China
India
Global
China
India
Global
China
India
Global
China
Source : Wood Mackenzie, IMF, IHS Markit, BMI, BP Energy outlook 2020
Note : All commodities demand correspond to primary demand; figures are for 2021
DEMAND 2020-2030 CAGR
1
.
2
1
(%)
INDIA GROWTH POTENTIAL
5
.
5
9
.
5
9
.
5
9
.
6
2
.
2
8
.
1
4
.
2
8
.
1
9
.
3
7
.
4
2
.
4
4
.
2
1
.
0
7
.
2
)
2
.
0
(
)
1
.
0
(
Copper
Lead
Met Coal
Aluminium
Zinc
Iron Ore
Nickel
Oil
)
7
.
0
(
Thermal
Coal
India Demand
Global Demand
Vedanta Limited Comodity Presence
Source: Wood Mackenzie
Note: Oil demand CAGR shown for 2018-2030 period
12
Jharsuguda Facility, Odisha
GDP
(Nominal at $PPP)
Pre capita income
(Nominal at $PPP)
Population
Urbanisation
Source: IHS Market
India
CAGR 8 . 8%
$23.7tr
2030
CAGR 7.9%
$15,782
CAGR 0.9%
2030
1.5bn
2030
CAGR 1.4%
40%
2030
$10.2tr
2020
$7,409
2020
1.4bn
2020
35%
2020
India’s mineral reserves
ranking globally
8th
Zinc
Reserves: 10.0 mn tonnes
Crude oil
Reserves: 4.4bn bbl
7th
Iron ore
Reserves: 5.5 bn tonnes
8th
Bauxite
Reserves: 660 mn tonnes
Source: USGS Mineral
Commodity Summaries
2021, OPEC Annual Statistical
Bulletin 2020.
13
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report INVESTMENT CASE CONTINUED...
World-class natural resources powerhouse with proven track record
Our Management team has a diverse and
PRODUCTION VOLUMES
(kt)
extensive range of sectoral and global experience.
They ensure that operations run efficiently and
responsibly, drawing from key insights
Disciplined approach to development, growing
our production steadily across our operations with
focus on operational efficiency and cost savings
Since our listing in 2003, our assets have delivered a
phenomenal production growth
0
0
4
1
8
8
3
1
3
4
3
1
6
3
9
2
7
7 9
1
9
1
7
5
1
6
5
9
6
5
9
8
1
4
7
1
2
6
1
Oil & Gas
Underground
mine zinc
production
Aluminium
production
Jharsuguda
Aluminium
production
BALCO
FY 2019
FY 2020
FY 2021
< BACK TO CONTENTS
Strong financial profile
Our operating performance, coupled with optimisation
of capital allocation, has helped strengthen our financials.
Revenues of `86,863 crore and EBITDA
of `27,341 crore
Strong ROCE of ~19 %
Deleveraging and extending our debt maturities
through proactive liability management exercises
Strong and robust FCF of `13,821 crore
Cash and liquid investments of `32,614 crore
A strong balance sheet, with respect to Net Debt/
EBITDA (0.9x) and gearing, compared to our global
diversified peers
Interim dividend of ~`3,500 crore paid in FY2021
RETURN ON CAPITAL EMPLOYED
FY2021
FY2020
FY2019
11
13
(%)
19
Well-invested assets driving free cash flow growth
Completed a significant proportion of our medium-
term capital expenditure programme; and we are
now ramping up production to take advantage of our
expanded capacity
GROWTH CAPEX
FY2021
2,578
FY2020
FY2019
Seeing positive outcomes of our investments, with
Zinc India and aluminium delivering robust production
in the past year; and we expect Zinc International,
particularly the Gamsberg project, to provide further
impetus to our Zinc business, going forward
In the Oil & Gas business, we have begun to
implement our growth projects with a gross capex of
US$3.2+ billion, enabling us to grow our volumes in the
near term. These increases in production are leading
to a strong cashflow generation
(` cr.)
6,385
7,764
Committed to the highest standards of ESG
Committed to be the lowest cost producer in a
LTIFR
sustainable manner
Aligned to our Group objective of ‘Zero Harm, Zero
Waste and Zero Discharge’, we worked dedicatedly to
set up a framework, aligned to global best practices
Focusing on key material areas of occupational health,
safety, environment, carbon, social performance and
governance
Key future programmes comprise the following:
achieve highest safety level, manage zero net
environmental damage, support global carbon
neutrality targets and work with all stakeholders in
harmony
We have made significant improvements in our
investigation quality to avoid repeat accidents and
promote higher reporting for all incidents. We are also
duly progressing towards achieving our water and
waste targets set for the year.
FY2021
FY2020
FY2019
0.55
0.66
0.46
WATER CONSUMED & RECYCLED
(mil m3)
3
4
2
0
5
2
0
7
2
7
6
1
7
3
8
FY2019
FY2020
FY2021
Consumed
Recycled
Operational excellence and technology driving
efficiency and sustainability
Eliminating inefficiencies across every aspect of
FCF POST CAPEX
operations
Leveraging advanced technologies to roll out a
wide range of innovation
Rationalising the cost structure to build a leaner
operating model
Ensuring sustainable operations and delivering a
positive result for all our stakeholders and society
FY2021
FY2020
FY2019
7,130
11,553
(` cr.)
13,821
14
Cairn facility
15
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report CHAIRMAN’S STATEMENT
Strength meets
responsibility
DEAR STAKEHOLDERS,
The year 2020 was a very unusual
year for all of us. A year that was
challenging on multiple fronts,
but what stood out was the
extraordinary resilience and
adaptability of individuals and
enterprises. There was a tectonic
shift in the way we live or conduct
our businesses, and Vedanta was
no different. As a large natural
resources company, we have had our
fair share of challenges. However, we
were quick to adapt to the emerging
realties, backed by the relentless
support of our dynamic workforce.
We extended our support to the
nation’s fight against COVID-19
during its first wave through
contributions to the PM CARES Fund
and undertaking initiatives that
positively impacted the lives of over
15 lakh people. We have now pledged
`150 crore to help the country in
its fight against the second wave
of COVID-19 along with setting up
1,000 specialty beds in 10 locations
across India. Sterlite Copper, which
has a capacity to produce 1,000
tonnes of oxygen at Tuticorin, is
catering to the needs of COVID-19
patients in the region.
A YEAR OF CONTINUED
EXCELLENCE AND LEARNING
Vedanta Limited is one of the
world’s largest suppliers of natural
resources, with primary operations
in zinc-lead-silver, iron ore, steel,
copper, aluminium, power, oil & gas.
Our portfolio of world-class, low-
cost, scalable assets consistently
generate strong profitability and
deliver robust cash flows. We are
actively deleveraging our balance
sheet and are raising the bar in
operational excellence across our
wide canvas of operations.
During FY2021, Vedanta continued
to live up to its promises to its
stakeholders and operated a resilient
and responsible business that
< BACK TO CONTENTS
`150 crore
Pledged by Vedanta to
support India during the
second wave of COVID-19
contributed to a self-reliant India.
Even as temporary disruptions
materialised, we were able
to bounce back strongly with
industry-leading EBITDA margins
and exceptional quarters for key
businesses.
We continued to deliver on all
strategic levers, building on our
strengths and commitment to
operational excellence. We remained
cash flow positive; and maintained
liquidity at comfortable levels.
It also gives me great pleasure
to inform you that we performed
exceedingly well on key
environmental, social and
governance (ESG) aspects during
the year. This is validated by
our ranking in the Dow Jones
Sustainability Index, which
improved nine places to 12th
globally in our industry. It’s a
true reflection of our belief that
business and sustainability are
synergistic in nature.
While we have reasons to
celebrate, we mourn the passing
of eight of our colleagues. We
are grieved by their irreplaceable
loss and are supporting the
bereaved families. At Vedanta, we
accord paramount importance to
occupational safety and employee
well-being and continue to nurture
a safety culture that results in
zero harm. However, there is
always room for improvement, and
collective action and behavioural
change alone can help bring
transformational outcomes. Aligned
to this, we are conducting a Group-
wide review of permit to work and
isolation procedure and are instating
a safety alert dashboard to improve
implementation of fatality learnings.
Cross business safety audits and
piloting of critical risk management
are other supplementary initiatives
supporting this.
OPERATING IN A THRIVING
ECONOMY
After an outlier year, India is now
back on the growth trajectory,
and is poised to grow by 11.5% in
FY2022, according to the
International Monetary Fund.
The rebound is clearly evidenced
by the uptick in consumption,
manufacturing activity and bank
credit. India is experiencing a
V-shaped recovery. Global agencies
such as the World Bank have
acknowledged the fact that this
recovery is phenomenal, given how
the country has now opened up, and
is organising large-scale vaccination
drives on priority.
The government is also playing a key
role in facilitating the economy’s
return to the growth path. This is
clearly reflected in the Union Budget
2021-22, which lays extended focus
Offshore facility of Cairn Oil & Gas
16
17
Anil Agarwal,
Chairman
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report CHAIRMAN'S STATEMENT CONTINUED...
mineral reserves. Currently, natural
resources contribute 1.75% to India’s
GDP, whereas in countries with
similar reserves, the contribution
is 7-7.5%. The MMRDA Bill is a
gamechanger in this context and is
expected to significantly improve
the share of the sector in the
national economy. It will contribute
to the creation of over five million
jobs and will considerably reduce
India’s import dependence for basic
materials.
BEING THE DEVELOPER OF
CHOICE
Over the years, Vedanta has built
one of the most recognised and
impactful CSR programmes in
India. As a natural resources player,
we are inextricably linked to the
communities near our operations,
and have become an inalienable part
of their livelihood.
From here stems our deep sense
of responsibility and extended
obligation beyond what is
mandatory.
During FY2021, we spent over
`331 crore on social development
activities, spread across our core
impact areas of education, health,
sustainable livelihoods, women
empowerment, sports and culture,
environment and community
development. Each Group company
played its part by executing the
respective CSR agenda, in line with
the Group guidelines.
This year, supporting communities
during the COVID-19 crisis also
assumed precedence, with the
distribution of nearly 25 lakh meal
and ration kits, and over 7 lakh health
and hygiene kits.
As we stand today, our flagship CSR
initiative for women and children
Building the future of India
on economic enablers such as
infrastructure and socially important
sectors such as health.Among
others, the proposals to create a
Development Financial Institution
(DFI), monetise assets, set up new
economic corridors and increase the
ambit of the National Infrastructure
Pipeline (NIP) are promising. These
measures, in conjunction with a
conducive policy environment, are
expected to increase the demand
for basic materials in which we
specialise. The relevance of metals
and mining are more pronounced
today than ever, and at Vedanta,
we are rightly positioned to cater
to the growing needs. The clarion
call for ‘Aatmanirbharta’ is very
well founded, and we are perfectly
aligned to the government’s vision of
a self-reliant nation. In line with this,
we have augmented our positioning
to ‘Desh Ki Zarooraton Ke Liye,
Aatmanirbhar Bharat Ke Liye.’
GROWING IN A VITAL INDUSTRY
There is a definite focus on India’s
natural resources sector as a key
enabler in supporting the nation’s
development. Apart from being a
contributor to GDP, it underpins
the supply of raw materials to the
nation’s burgeoning manufacturing
sector. Development of this sector
thus holds the key to the nation’s
ambition of becoming fully
self-reliant.
In recognition of this, India is turning
a new leaf with the introduction
of the Mines and Minerals
(Development and Regulation)
Amendment (MMRDA) Bill, 2021.
A welcome move, its passage will
significantly boost India’s metals and
mining industry, by inviting private
participation in the exploration of
key resources such as coal and gold.
It is set to redefine the norms of
exploration of mineral blocks and
adequately utilise India’s unused
18
< BACK TO CONTENTS
~9.23 mn m3
Water savings achieved
over the past four years
~52,000
Women benefited through
Nand Ghar initiative
~65,000
Children benefited through
the Nand Ghar initiative
Employees at Cairn, Oil & Gas
has touched a new milestone, with
the setting up of 2,300+ Nand Ghars
in 11 states. It continues to pave
the way for the model Anganwadi
movement across the country and till
date, we have positively touched the
lives of ~52,000 women and ~65,000
children through the initiative.
BEING NATURALLY RESPONSIBLE
As the largest natural resources
company of India, we are well aware
of the responsibility that rests on
our shoulders. It’s in this context
that we have a target-oriented
environmental programme. We
believe that good ecology is good
business and strive our best to
give back more than we take.
Consequently, over the past four
years, we have achieved water
savings of ~9.23 million m3 and
have implemented an active plastic
protocol in three of our business
units. We have also seen 100%+ fly
ash utilisation.
With regards to GHG emissions,
we have a vision to substantially
de-carbonise our operations by
2050, and towards this extent, we
have built a Group-wide carbon
forum with CEO-level engagement.
I’m also proud of the fact that we are
among the 24 Indian companies who,
in late 2020, signed the declaration
towards carbon neutrality. Today, we
have achieved ~13.6 million tCO2e in
avoided emissions compared to our
2012 baseline.
We constantly engage with
best-in-class service and technology
providers to ensure the highest level
of safety for our employees
and have managed to achieve a
zero-fatality year at our largest
business - Hindustan Zinc.
BEING THE EMPLOYER OF CHOICE
AHEAD WITH INDIA
Vedanta is home to thousands of
skilled professionals, who seek to
develop their careers aligned to
our culture and facilitated by an
employee-friendly, diverse, and
meritocratic environment. Their
efforts have been instrumental in
taking Vedanta to its current stature,
and their contribution to ensuring
business continuity has been
phenomenal at the height of the
pandemic.
The safety, well-being and happiness
of our employees is of utmost
importance to us, and we are taking
every measure to ensure the same.
Towards this, we rolled out health
programmes for our employees and
business partners during the year.
We also focused on telemedicine,
promotion of mental health and
health monitoring so that our people
remained safe and secure during
these trying times.
As I look forward, I see an
opportunity of a lifetime ahead
of us. Our economy has regained
its growth momentum and we
are operating in an industry that
complements this growth curve.
With India’s young energy, consistent
governance, strong consumption,
and a thriving private sector, I’m
positive that the best for the
nation is yet to come. At Vedanta,
we are cognisant of the immense
growth potential and will invest in
opportunities that create value for
all stakeholders. As we power ahead,
we stand in solidarity with India, its
ambition of being Aatmanirbhar and
creating a 5 trillion-dollar economy.
Best regards,
Anil Agarwal
19
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report CEO’S STATEMENT
Spirit of consistent
delivery and growth
DEAR STAKEHOLDERS,
I am happy to report that our
intrinsic spirit to do more and
serve more helped us navigate
the crisis with confidence in
FY2021, which truly tested our
mettle. In a year abound with
changes and challenges, our
performance was exemplary
by any measure. Further, the
year also saw us strategically
augment our business model with
larger integration and a digital-first
approach. The entire Vedanta family
deserves a huge round of applause
for this achievement.
RESILIENCE MEETS PRUDENCE
I can say with reasonable confidence
that we delivered on all major
strategic priority areas, with positive
outcomes across key performance
indicators. We maintained our
leadership in most of our businesses
and improved on our sustainability
metrics. We also supported our
people, partners and communities
during the testing times of the
pandemic and continue to do so.
Safety and health continue to be our
24X7 priority. It is a commitment that
strengthens our culture, guides our
decisions and drives our long-term
success.
`32,614 crore
Cash and cash equivalents
~19%
ROCE
Sunil Duggal,
Chief Executive Officer
< BACK TO CONTENTS
Our revenues touched `86,863 crore during the year, and we recorded a Net Profit of
`15,032 crore. We were also able to achieve industry-leading operating margins. This is a
testament to the high-performance culture that we have been able to successfully build
over the years. Coupled with a conducive macro environment, we were able to maximise
earnings to cash conversion and allocate capital prudently, while pursuing high-return
organic growth projects across businesses. Cost optimisation also remained high on our
radar to ensure healthy cashflows.
However, there is always room
for improvement, and collective
action and behavioural change
alone can usher in transformational
outcomes. Aligned to this, we
are conducting a Group-wide
review of permit to work and
isolation procedure and are
instating a safety alert dashboard
to improve implementation of
fatality learnings. Cross business
safety audits and piloting of
critical risk management are
other supplementary initiatives
supporting this.
SUSTAINABILITY AS AN
IMPERATIVE
I’m proud to say that today more
than ever, we are striving to
contribute better to the world.
Our focus on decarbonisation and
the commitments we have made
in lieu of the same are proactive
steps that we are taking in doing
our part. Similarly, compared to
a baseline from a decade ago, we
are much better placed in terms of
water savings and emissions. Going
forward, we will continue to work on
our announced targets and ensure
that our operations maintain a
greener footprint.
Our liquidity position remains robust
with cash and cash equivalents of
`32,614 crore, with a conservative
debt exposure. We have been able
to maintain a low Net Debt/EBITDA
of 0.9x. Our focus on shareholder
value creation remains unwavering,
evidenced by a strong ROCE of ~19%.
From a resources standpoint,
Vedanta continues to foster long
life, structurally low cost and diverse
assets with excellent potential, which
aligns with our growth ambitions.
Together with our strengths in
technology, people, and governance,
we are ready to cater to the nation’s
growing needs for metals and
minerals.
A PARAMOUNT FOCUS ON SAFETY
In FY2021, we sharpened our focus on
fostering a safe and healthy working
environment for our people and
partners. However, it is with deep
regret that I report the demise of
eight of our colleagues. We are doing
everything we can to ensure that such
incidents do not occur in the future.
At Vedanta, we accord paramount
importance to occupational safety
and employee well-being and
continue to nurture a safety culture
that results in zero harm.
Employees in discussion at underground
mine, Rajpura Dariba Complex
20
21
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report CEO’S STATEMENT CONTINUED...
256 wells have been drilled and 149
wells hooked up. Our average gross
production during the year stood
at 162 kboepd; which was mainly
impacted by COVID-19.
Iron ore
Following the upcyle in the metal
sector, we were able to swiftly
mobilise inventory, and realise
value owing to firm market prices.
The production in Karnataka has
significantly improved at a y-o-y level.
Steel
For our ESL business, FY2021
proved to be the best till date, since
acquisition. We achieved a hot metal
production of 1,286 kt, with 19%
margin. This was led by a significant
contribution from our value-added
products sales, whose mix in the
portfolio has touched 72%.
FACOR
With respect to Ferro Alloys
Corporation Limited (FACOR), we
were able to more than double
the margins since acquisition, and
considerably improved our total
market share. Our current ore
production stands at 147 kt.
BUILDING A DIGITAL-FIRST
ENTERPRISE
At Vedanta, we have laid a significant
focus on leveraging technology and
adopting Industry 4.0 practices.
Under the ‘Pratham’ initiative, we
have introduced several measures,
such as smart manufacturing and
advance process control in order
to improve volumes and optimise
asset utilisation. Project Disha,
which leverages the wealth of
data that the organisation has
for decision-making, has started
showing its results, owing to
advanced analytics capabilities.
OPERATIONAL REVIEW
FY2021 saw us achieve some of our
best quarters in zinc and steel while
we sustained low-cost production of
aluminium. We also ramped up our
natural gas production. Here’s a brief
update on each of our businesses:
Aluminium
In FY2021, we achieved record
aluminium production of 1,969 kt
at our aluminium smelters, and
record alumina production from our
Lanjigarh facility. We were also able
to sustain our low-cost advantage
by engaging structural measures
to attain US$1,347 per tonne cost
of production in FY2021. We have
also achieved an EBITDA margin
of 27%. While we have optimised
our coal and bauxite source mix,
we have also continued our journey
towards improving our operational
efficiencies and debottlenecking
our assets for improved capacity
utilisation. Similarly, Lanjigarh
capacity expansion from 2 mtpa to 5
mtpa has been initiated.
Employees at Lanjigarh facility
Zinc
For Zinc India operations, we
completed 1.2 MnT mined metal
project activities and sustained
production post-transition to a fully
underground mining company.
We will be actively adding to our R&R
in sync with high production, going
forward. We are also achieving strong
momentum in silver production
and aim to be among the top three
producers of silver, globally. For Zinc
International, our performance
ramp-up continues, achieving highest
ever production till date at Gamsberg,
along with sustained cost reduction.
Oil & Gas
We continued delivering on growth
projects such as the commissioning
of the new gas facility, ramp up of
polymer injection, and upgradation
of the liquid handing capacity by 30%,
major facility systems commissioned.
We added 10 new blocks in OLAP II
& III, bringing the total to 58 blocks.
Early drilling opportunities are being
evaluated in Rajasthan, Assam and
Cambay regions. Till FY2021, to
deliver on the capex project,
< BACK TO CONTENTS
At a process level, to achieve
Group-level salience and unification,
we harmonised our people and
HSE functions, which will lead to
measurably better outcomes.
The digitalisation drive has also
led to enhanced automation and
control in our supply chain and
logistics. This will lead to better
cost rationalisations and higher
transparency across all aspects
of operations.
We have realised that the change
needed for digital adoption is more
human-led as much as systems-led.
It is with this intention that we have
introduced Vedanta Spark, which is a
global start-up platform that builds
the innovation culture and mindset
change, strengthening Group-wide
digital capabilities.
INNOVATING INTEGRATED
APPROACHES
We have augmented our
business model by integrating
our procurement and marketing
functions. This will result in better
economies of scale, lower process
redundancies, and take us closer to
our customers. Today, Vedanta has
a single window for the selling of
key commodities, enabled by digital
platforms. It will also increase
cross-selling opportunities and
add on to market growth and new
product development.
WINNING THE FUTURE
Our focus remains on generating
robust cash flows, capital discipline,
proactive liability management and
maintaining a strong balance sheet.
Also, we will continue to review all
our strategic decisions, based on the
evolving industry realities.
Capitalising on a favourable
macro-economic environment,
we are committed to helping
build a more self-reliant India,
and relentlessly contributing
to its progress. I thank our
esteemed Board, employees,
investors, communities and all
other stakeholders who have put
their precious faith in our vision
and capabilities and seek their
continued support.
Best regards,
Sunil Duggal
Digital Innovation at Vedanta
At a process level, to
achieve Group-level
salience and unification,
we harmonised our
people and HSE
functions, which will
lead to measurably
better outcomes.
22
23
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report KEY PERFORMANCE INDICATORS
Delivering on all fronts
GROWTH
Revenue
FY2021
FY2020
FY2019
EBITDA
FY2021
FY2020
FY2019
(` cr.)
86,863
83,545
90,901
(` cr.)
27,341
21,061
24,012
Description: Revenue represents the
value of goods sold and services provided
to third parties during the year.
Commentary: In FY2021, consolidated
revenue was at `86,863 crore compared
to `83,545 crore in FY2020. This was
primarily driven by higher commodity
prices, higher volumes at Zinc India,
Copper, Iron Ore and Aluminium
business, inclusion of FACOR in FY2021
and rupee depreciation, partially offset by
lower power sales at TSPL, lower volume
at Oil & Gas, Skorpion, and lower cost
recovery at Oil & Gas business in FY2021.
Description: Earnings before interest,
tax, depreciation and amortisation
(EBITDA) is a factor of volume, prices
and cost of production. This measure is
calculated by adjusting operating profit
for special items and adding depreciation
and amortisation.
Commentary: EBITDA for FY2021 was
at `27,341 crore, 30% higher y-o-y. This
was mainly driven by higher commodity
prices, higher sales realisation from
Iron ore and Steel business, increased
volumes at Zinc India and Aluminium
business, lower cost of production at
Zinc, Aluminium and Oil & Gas business,
and rupee depreciation, partially offset
by lower brent realisation and lower cost
recovery at Oil & Gas business.
FCF post-capex
FY2021
FY2020
7,130
FY2019
11,553
(` cr.)
13,821
Description: This represents net cash
flow from operations after investing in
growth projects. This measure ensures
that profit generated by our assets
is reflected by cash flow, in order to
de-lever or maintain future growth or
shareholder returns.
Commentary: We generated FCF of
`13,821 crore in FY2021, driven by
strong cash flow from operations and
lower sustaining and project capital
expenditure.
Return on capital
employed (ROCE)
FY2021
FY2020
FY2019
11
13
(%)
19
Description: This is calculated on the
basis of operating profit before special
items and net of tax outflow, as a ratio of
average capital employed. The objective
is to earn a post-tax return consistently
above the weighted average cost of
capital.
Commentary: Strong ROCE ~19%
in FY2021 (FY2020: 11.2%), primarily
due to strong operating and financial
performance coupled with lower
depreciation due to impairment in Oil &
Gas business in FY2020.
(%)
36
Description: Calculated as EBITDA
margin excluding EBITDA and turnover
from custom smelting of Copper India
and Zinc India businesses
Commentary: Adjusted EBITDA margin
for FY2021 was 36% (FY2020: 29%).
Adjusted EBITDA margin
29
30
FY2021
FY2020
FY2019
24
< BACK TO CONTENTS
Net Debt /EBITDA
(Consolidated)
FY2021
FY2020
FY2019
Description: This ratio represents the
level of leverage of the Company.
It represents the strength of the
balance sheet of Vedanta Limited.
Net debt is calculated in the manner
as defined in Note 16(c) of the
consolidated financial statements.
0.9
1.0
1.1
Commentary: Net debt/EBITDA ratio as
at 31 March 2021 was at 0.9x, compared
to 1x as at 31 March 2020.
Interest Cover
FY2021
FY2020
FY2019
5.6
7.8
11.0
Description: The ratio is a
representation of the ability of the
Company to service its debt. It is
computed as a ratio of EBITDA divided
by gross finance costs (including
capitalised interest) less investment
revenue.
Commentary: The interest cover for the
Company was at ~11.0x, higher y-o-y on
account of higher EBITDA.
OTHER KEY FINANCIAL RATIOS
Debtors
turnover ratio*
FY2021
FY2020
FY2019
Inventory
turnover ratio
FY2021
FY2020
FY2019
Current ratio
FY2021
FY2020
FY2019
Description: The debtors’ turnover
ratio is an accounting measure used to
quantify the Company’s effectiveness
in collecting its receivables. This is
calculated as a ratio of revenue from
operation to average trade receivables.
Commentary: The debtors turnover
ratio was at 33.9x, higher y-o-y primarily
on account of higher revenue from
operations.
*Excluding power business
Description: The inventory turnover
ratio is an efficiency ratio that shows
how effectively inventory is managed.
This is calculated as a ratio of cost of
goods sold to average inventory.
Commentary: The inventory turnover
ratio for the Company was at 5.6x in
FY2021 as compared to 5.1x in FY2020.
33.9
30.5
33.6
5.6
5.1
5.3
Description: The current ratio is
a liquidity ratio that measures the
Company’s ability to pay short-term
obligations or those due within one
year. This is calculated as a ratio of
current assests to current liabilities.
1.0
0.9
0.8
Commentary: The current ratio of the
Company remained flat at ~1.0x.
25
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report KEY PERFORMANCE INDICATORS CONTINUED...
Debt equity ratio
FY2021
FY2020
FY2019
0.7
0.8
0.9
Description: It is a financial ratio
indicating the relative proportion of
shareholders’ equity and debt used
to finance a company’s assets. This is
calculated as a ratio of total external
borrowing to total equity (share
capital + reserves + minority).
Commentary: The ratio has decreased
to 0.7x in FY2021 primarily because
of decrease in gross debt due to
the repayment of debt at Vedanta
Standalone partially offset by increase
in borrowing at Zinc India business and
BALCO and increase in equity.
Operating profit
margin
FY2021
FY2020
FY2019
14
17
Net profit margin
FY2021
FY2020
7
FY2019
10
Return on net worth
FY2021
FY2020
8
FY2019
12
(%)
23
(%)
18
(%)
21
LONG-TERM VALUE
Growth capex
(` cr.)
FY2021
2,578
FY2020
FY2019
6,385
7,764
Description: Operating profit margin is
a profitability or performance ratio used
to calculate the percentage of profit the
Company produces from its operations.
This is calculated as a ratio of operating
profit (EBITDA less depreciation) to
revenue from operations.
Commentary: The operating profit
margin was higher in FY2021 as compared
to FY2020, primarily due to higher
EBITDA and lower depreciation in the
current year.
Description: It is a measure of the
profitability of the Company. This
is calculated as a ratio of net profit
(before exceptional items) to revenue
from operations.
Commentary: The net profit margin was
higher in FY2021 as compared to FY2020,
primarily due to robust EBITDA and lower
depreciation in the current year.
Description: It is a measure of the
profitability of the Company. This
is calculated as a ratio of net profit
(before exceptional items) to average
net worth (share capital + reserves +
minority).
Commentary: The return on net worth
has increased, mainly on account of
increase in EBITDA during the year.
Description: This represents the
amount invested in our organic growth
programme during the year.
Commentary: Our stated strategy is of
disciplined capital allocation on high-
return, low-risk projects. Expansion
capital expenditure during the year stood
at `2,578 crore.
EPS (before exceptional
items and DDT)
(` per share)
FY2021
32.80
FY2020
10.79
FY2019
18.50
Description: This represents the
net profit attributable to equity
shareholders and is stated before
exceptional items and dividend
distribution tax (net of tax and minority
interest impacts).
Commentary: In FY2020, EPS before
exceptional items was at `32.80 per
share. This mainly reflects the impact of
lower depreciation charges and higher
EBITDA.
26
< BACK TO CONTENTS
Dividend
(` per share)
FY2021
9.50
FY2020
3.90
FY2019
18.85
Reserves and Resources (R&R)
Description: Dividend per share
is the total of the final dividend
recommended by the Board in relation
to the year, and the interim dividend
paid out during the year.
Commentary: The Board has
recommended a total interim
dividend of `9.50 per share this year
compared with `3.90 per share in the
previous year.
Zinc India
(million mt)
Zinc International
(million mt)
Oil & Gas
(mmboe)
FY2021
FY2020
FY2019
448
FY2021
566
FY2021
403
403
FY2020
FY2019
509
434
FY2020
FY2019
1,229
1,194
1,195
Description: Reserves and resources are
based on specified guidelines for each
commodity and region.
Commentary:
Zinc India: During the year, gross
additions of 45 million tonnes were made
to R&R, prior to depletion of 15 million
tonnes. Overall mine life continues to be
more than 25 years.
Zinc International: During the year,
mineral R&R at Zinc International
increased by 8% to 566.4 mt containing
30.3 mt of metal. Gross additions to
R&R, after depletion, amounted to
41.3 mt of ore and 1.8 mt of metal.
Despite depletion, reserve levels were
successfully maintained at the same
level as 2020, and amounted to 139.7 mt
containing 8.3 mt of metal. The most
significant contributor to the addition of
metal in resources was the declaration
of a maiden resource at Gamsberg South
(23.2 mt @ 7.1% Zn and 0.6% Pb). Overall
mine life is more than 30 years.
Oil & Gas: During FY2021, the gross
proven and probable R&R increased by
35 mmboe during the year.
SUSTAINABLE DEVELOPMENT
LTIFR
FY2021
FY2020
FY2019
0.55
0.67
0.46
Description: The lost time injury
frequency rate (LTIFR) is the number of
lost-time injuries per million man-hours
worked. This includes our employees and
contractors working in our operations
and projects.
Commentary: This year the LTIFR was
0.55. Safety remains the key focus across
businesses.
Gender diversity
(%)
FY2021
FY2020
FY2019
11.23
10.9
10.5
CSR footprint
(million beneficiaries)
FY2021
FY2020
3.26
FY2019
3
42
Description: The percentage of women
in the total permanent employee
workforce.
Commentary: We provide equal
opportunities to men and women. During
the year, the ratio of female employees
was 11% of total employees.
Description: The total number of
beneficiaries through our community
development programmes across all our
operations.
Commentary: We benefited around
42 million people this year through
our community development projects
comprising community health, nutrition,
education, water and sanitation,
sustainable livelihood, women
empowerment and bio-investment.
This year our large-scale COVID-19
outreach programme has further
augmented the metric.
27
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
HZL offers two variants
HZDA-3 and
HZDA-5
Marching ahead and
contributing to
AATMANIRBHAR
BHARAT
Hindustan Zinc Limited (HZL) is aggressively pursuing the Government of India’s
mega drive towards Aatmanirbhar Bharat, and developing value-added zinc
products for India’s steel, auto and alloy industries. Many success stories have
been meticulously crafted through the collective grit and relentless innovation
focus by Team HZL.
Another value-added product
is Hindustan Zinc Die-cast Alloy
(HZDA), which is now being used
by the domestic auto components
manufacturing industry. HZL
offers two variants (HZDA-3 and
HZDA-5) of the product to cater to
the needs of alloy makers. Earlier,
Die-cast alloys were imported,
hence this make-in-India initiative
will lead to foreign exchange
savings for the country. Its
wide availability is another big
advantage for auto components
manufacturing companies.
Yet another success story for
HZL is Electro Plating Grade (EPG)
products. The Company has set up
a digital shop to quickly address the
requirements of various customers
seamlessly. Indian Micro Small and
Medium Industries (MSMEs) can
easily have access to the products
One such successful project
is Continuous Galvanising
Grade (CGG), a zinc-aluminium
alloy that was co-developed
with leading domestic steel
manufacturers. The benefits
of this value-added product
comprise significantly low energy
costs and better coating finish
owing to the use of aluminium.
Electro Plating
Grade (EPG)
products
A successful HZL story
28
from the Company’s warehouses,
with real-time prices benchmarked
to the London Metal Exchange (LME).
The Company’s future plan is to
develop zinc dust, which will cater
to the requirements of the paints,
pharma and fertiliser industries.
Possibilities on the horizon
Collaborating with academia
HZL is also partnering with IIT
Bombay for Continuous Galvanized
Rebar (CGR) benefits. IIT Bombay has
published a paper that demonstrates
the benefits of CGR vs epoxy-coated
vs non-galvanized rebars, along
with cost implications. The life of all
coastal infrastructure can increase
manifold at an almost equal cost
compared to other options for
EPC contractors.
Capitalising on strong tailwinds
Given the gradual migration from
fossil fuel to renewables throughout
the world, major investments in
battery technology involving zinc
are expected to come to India.
This indicates that the horizon of
opportunities for HZL is growing.
The Company is fully equipped to
take advantage of these tailwinds to
grow its business and partner a
self-reliant India.
Partnering for self-reliance
Aligned with the mission for a self-
reliant India, HZL envisages several
opportunities in the near and long
term and is already capitalising on
many of them. HZL is now partnering
with leading Indian corporates
for Aatmanirbhar Bharat. The
partnership with Tata Steel is a
remarkable step in this direction.
Tata Steel made an exception to
their Two-Supplier policy by giving
100% of their annual requirement
to HZL last year. HZL is providing
vendor managed inventory services
to Tata Steel’s plants to help them
rationalise their costs.
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
29
Special Hi-Grade
Silver Ingots
Powering the wheels of
AUTOMOTIVE
INDUSTRY
Aluminium’s versatility makes it the metal of choice for a wide range of
industries. These are aviation, aerospace, automobiles and electric vehicles,
transportation, building & construction, defence, electrical distribution, and
many more. As India’s largest aluminium producer, our quest for product
excellence stems from a mission to serve our customers better. This is centred
around developing value-additions that tap into the metal’s superior inherent
properties to cater to the evolving market requirements.
< BACK TO CONTENTS
At Vedanta, we are relentlessly
exploring the capabilities of
aluminium as the
‘Green Metal
of the Future’
INDIGENOUS CAPABILITIES FOR AN
IMPORT-DEPENDENT INDUSTRY
India’s auto sector consumes about
4% aluminium, vis-à-vis 11% in the US
and 14% in Europe, indicating a huge
growth headroom. The country’s
foundry market for automotive
components is small (only 10% of the
total foundry market) compared to
that of the US. With increasing focus
on higher performance with better
safety and lower emission, this gap is
going to shrink progressively.
We, at Vedanta, have tapped into
the opportunity are developing
indigenous capabilities to meet
aluminium’s growing demand. Our
Aluminium business was the first
in India to supply Primary Foundry
Alloys (PFA) to the import-dependent
domestic auto sector for the
manufacture of alloy wheels.
PFA’s domestic market was ~250 kt
in FY2020, of which 65 kt was being
imported as wheels from China and
other duty-free nations and ~20 kt
was being supplied from BALCO.
In FY2020, 160 kt PFA was imported
into India, which later reduced to 98 kt
in FY2021 following the capacity
ramp-up in BALCO’s foundry alloy line.
Our aluminium smelters across
Odisha and Chhattisgarh have
advanced technology-enabled cast
houses. Best-in-class engineering
technologies, intelligent automation,
smart solutions, environmental
safeguards and sustainability-focused
operating procedures are integrated
to create lasting value. Equipped
with in-line metal treatment facilities
consisting of degassing and metal
filtration unit and continuous casting
technology, this ensures that our
customers get the best-in-quality PFA.
A HAWK-EYED FOCUS ON QUALITY
Our foundry alloy ingots exceed the
most stringent quality requirements
such as the standards set by the
International Automotive Task Force
(IATF). We have received IATF-16949
certification, one of the most widely
used international standards trusted by
leading global automakers. We are now
India’s only TS-16949 and IATF-16949
accredited primary smelter. Our Centre
of Quality Excellence, stringent quality
assessment of raw materials and
finished products have made us one of
the most preferred aluminium suppliers
to developed markets. Our Customer
Technical Services (CTS) team has
become more advanced and intuitive
in ensuring complete customer
fulfilment. With state-of-the-art
infrastructure, engineering prowess,
global technology partnerships and
R&D capability to develop solutions,
Vedanta is poised to bring fundamental
change in India’s automotive and
auto-ancillary markets to help build the
future of mobility.
A NATURAL GROWTH PARTNER FOR
INDIA’S AUTOMOTIVE SECTOR
Expanding our foundry alloy product
line, we have recently launched the
Aluminium Cylinder Head Alloy. This
alloy was entirely being imported into
India (25 kt in FY2021). The Cylinder
Head Alloy leverages material design
to help automakers increase efficiency
of internal combustion engines for
improved performance on emission
control, in line with BS-VI and CAFE
(Corporate Average Fuel Efficiency/
Economy) norms.
The first Indian emission regulations
were idle emission limits, which have
become more stringent over time
following the implementation of
Bharat Standards, the latest of
which is BS-VI, implemented on
1 April 2020. With tighter norms and
compliance to control emission of
sulphur oxide, nitrogen oxide and
carbon dioxide, automakers are
looking for fundamental solutions such
as improving the efficiency of internal
combustion engines. This is where
Vedanta’s Aluminium Cylinder Head
Alloy is helping automakers adhere to
emission norms.
India’s auto component sector is
among the fastest growing but lags
in contribution to manufacturing
turnover. The country’s auto
component industry’s aspirations of
having a significant share of the global
trade, calls for a renewed focus on
localisation on every business front,
particularly with respect to sourcing
raw materials. As India’s leading
producer of a vast array of globally
acclaimed metals and value-added
products, Vedanta is a natural partner
for the automotive and auto ancillary
industry, across their entire value
chain, from large players to MSMEs for
the nation’s growth.
Aluminium Billets
30
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
31
< BACK TO CONTENTS
3D
Visualisation
module
of OptiMine to track machines
in the Rampura Agucha
underground mine
Taking digital
transformation to
THE NEXT LEVEL
“Vedanta is focused on applying smart manufacturing technologies aimed at
significantly improving HSE, driving up production volumes, reducing operating cost,
improving stakeholder experiences, and enhancing ease of doing business. We are
transforming into an organisation that is embracing new agile ways of working and
we are making digital a way of life”
Anand Laxshmivarahan R,
Interim Group Chief Digital Officer, Vedanta
Traditional businesses, which were largely looked upon as brick-and-mortar companies, were slow to transform.
However, they are recognising the need for faster digitalisation to expedite integration across divisions and
verticals, stepping up efficiency, and reaching out to more customers and stakeholders. Besides, digitalisation has
not only improved business gains, but has also enhanced safety standards. At Vedanta, we are relentlessly building
on our digital backbone across all our businesses as an investment for the future.
3D VISUALISATION TO REDUCE
RAMP JAM
HAULING CYCLE TIME
REDUCTION IN RA UNDERGROUND MINE
With the extensive use of 3D visualisation module of
OptiMine to track machines in the Rampura Agucha
underground mine, we have achieved significant
improvement (9-10%) in the reduction of ramp jams
from November 2020 to March 2021. The control room
has played a major role in tracking daily operations
and critical processes to reduce ramp jams, increasing
efficiency and improving average response time to
clear the jams.
The digitalisation of the underground mine through our
WiFi network has been completed at Rampura Agucha
mine and the control room setup is fully operational.
Traffic awareness is being utilised now for the main
decline section spanning 12 km. Traffic congestion and
real-time equipment tracking are being utilised to drive
operational efficiency. Mobilaris and Eurovac are our key
partners in our ongoing digitalisation programme
at RAUG.
Low Profile Dump Truck (LPDT) cycle time has reduced
by 9-10% with improved visibility and real-time
decision-making from control room to equipment.
SOFT SENSOR FOR ANALYSIS AND
PREDICTION FOR REAL TIME P80
A soft sensor for P80 was built by modelling the grinding
process in Rampura Stream, using the historical
process parameter data from Pi. The model has 97%
accuracy, which helps optimise the consumable usage
of grinding media and process water addition. The
model ensures a consistent P80 to the downstream
floatation circuit, which will help the operations team
to reduce concentrate grade fluctuation. As the model
acts as a soft sensor for Particle Size Analyzer (PSI),
the procurement and the operating costs of PSI are
reduced. The model helps prevent over- or under-
grinding by effective P80 tracking.
Leveraging digital technology
at Hindustan Zinc facility
Traditional businesses are recognising the
need for faster digitalisation to expedite
integration across divisions and verticals,
stepping up efficiency, and reaching out to
more customers and stakeholders
32
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
33
< BACK TO CONTENTS
Improved systems and
processes and faster
adoption of digital strategy
have enabled Cairn Oil & Gas
to win several national and
international awards in the
last few years.
Cairn pushes the
DIGITAL ENVELOPE
FARTHER
Cairn Oil & Gas commenced project ‘Nirman’ in FY2019, which laid
out the Company’s digital roadmap and strengthened its foundation.
The year FY2021 saw ‘Project Pratham’ embrace the ‘digital first’
approach by accelerating the existing digital projects and unveiling
innovative initiatives to add more barrels to the topline, optimise cost per
barrel and improve Health, Safety and Environment (HSE) practices.
Through this initiative, Cairn is re-designing itself for quicker digital adoption and building
competencies through reskilling and ‘Act-Up’ programmes. The Oil & Gas business has further
refined its digital strategy to accomplish the vision of ‘smart oilfield’ that cuts across the
exploration and production value chain.
EXPLORATION AND NEW FIELD
DEVELOPMENT
DECLINE & RESERVOIR
MANAGEMENT
Leading to the reduction in time-to-
first oil by moving to cloud-based data
management and high-performance
computing such as seismic data and
processing on cloud, log splicing tool,
and so on.
To manage production-related
challenges to the ageing fields, we
are using traditional first principle-
based approaches augmented by
new-age data driven techniques in
Artificial Intelligence and Machine
Learning (AI/ML) such as water flood
optimisation in Aishwarya Upper
Fatehgarh and polymer optimisation
in Mangala fields, well reservoir
management job planning and
tracking, and so on.
SURFACE AND SUB-SURFACE
OPERATIONS
We are focused on reducing
unwanted production losses and
driving digital-led efficient work
processes through programmes
such as digital oilfield. Disha –
smart interactive reporting and
dashboards, model predictive
control-based artificial lift system
optimisation, satellite fields IoT-
based connectivity, production
reporting, and others are part of
this drive.
ASSET INTEGRITY AND
RELIABILITY
HEALTH, SAFETY AND
ENVIRONMENT
BUSINESS PROCESS
IMPROVEMENTS
Improvement programmes are
driven to have best-in-class
equipment availability. The culture
is shifting from reactive to proactive
maintenance through the adoption
of predictive analytics-based apps,
asset performance management,
drone-based transmission line
inspections, control room, field
logbooks, among others.
HSE practices are supported by
digitalisation, leading to Vedanta’s
vision of zero harm, zero discharge
and zero waste. For example, HSE
dashboards, contact tracing mobile
app, visible felt leadership app,
incident learning app, and so on.
Digitally enabled supporting
functions in the organisation
are expected to become more
efficient and productive such as
HR, procurement, supply chain &
logistics, finance, and so on. These
functions use technologies such as
upgraded ERP platform, BOTS, RPA
(Robotic Process Automation), video
analytics, and so on.
Digitally optimised artificial lift system
Artificial lift systems are complex pumping systems that drive oil from sub-surface to surface. Digital systems such
as advanced process control or model predictive control maximises production without violating any of the surface,
sub-surface, well or pump constraints. Additionally, customised artificial lift surveillance digital system helps avoid
avoidable trips and shutdowns, thus leading to higher runtime resulting in enhanced production. Moreover, it helps
engineers take prudent decisions that improve the run-life of these critical equipment.
34
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
35
< BACK TO CONTENTS
VALUE-CREATION
AND STRATEGY
At Vedanta, our sustainability-focused and integrated business
model continues to propel our value-creation process, helping
deliver better returns for all stakeholders. Our long-term focus is
reflected in our key strategic pillars that ingrain ESG as a core facet
of business viability.
CREATING VALUE FOR STAKEHOLDERS
Shareholders,
investors and lenders
A return on investment
Employees
Governments
A safe and inclusive working
environment
Generating economic value for
society and delivering sustainable
growth
Local community
and civil society
Investment in health, education
and local businesses
Industry (suppliers,
customers, peers, media)
Building long-term partnerships
36
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
37
VALUE CREATION MODEL
Operating a responsible,
future-proof model
< BACK TO CONTENTS
CAPITALS
INPUTS
ACTIVITIES
OUTPUTS AND OUTCOMES
FINANCIAL CAPITAL
We are focused on optimising capital allocation and
maintaining a strong balance sheet while generating
strong free cash flows. We also review all investments,
taking into account the Group’s financial resources with a
view to maximising returns to shareholders.
FINANCIAL CAPITAL
`372 crore
Equity
`61,905 crore
Retained earnings
`57,028 crore
Gross debt
`32,614 crore
Cash and cash
equivalents
`77,414 crore
Net worth
`2,578 crore
Capex
We operate across the mining
value chain focusing on long-term
and low-cost assets in India
and Africa
MANUFACTURED CAPITAL
We invest in best-in-class equipment and machinery to
ensure we operate as efficiently and safely as possible,
both at our current operations and in our expansion
projects. This also supports our strong and sustainable
cash flow generation.
INTELLECTUAL CAPITAL
As a relatively young company, we are keen to embrace
technological developments and encourage innovation.
We motivate our people to nurture and implement
innovative ideas, which will lead to operational
improvements across our operations.
HUMAN CAPITAL
We have employees drawn from across the world, and
their diverse skills and experience contribute to our
operations. The mining and plant operations require
specialised skills for which we employ qualified technical,
engineering and geology experts. In addition, we create
a culture which nurtures safety, innovation, creativity
and diversity, which helps us to meet our business goals
while also enabling our employees to grow personally and
professionally.
SOCIAL & RELATIONSHIP CAPITAL
We aim to forge strong partnerships by engaging
with our key stakeholders, including shareholders
and lenders, suppliers and contractors, employees,
governments, communities and civil societies. These
relationships help maintain and strengthen our licence
to operate.
NATURAL CAPITAL
India and Africa have favourable geology and mineral
potential. These regions provide us with world-class
mining assets and extensive R&R. Additionally, operating
our mines requires a range of resources including
water and energy, which we aim to use prudently and
sustainably.
MANUFACTURED CAPITAL
`106,784 crore
Plant and
Equipment
`13,880 crore
Capital Work in
Progress (WIP)
HUMAN AND INTELLECTUAL CAPITAL INDICATORS
70,089
No. of Employees
incl contractors
1,481
HSE employees incl
contractors
186
No. of Geologists
including
contractors
8,33,941
No. of hours of
Safety training
3,259
Employees
covered under
mentoring &
support
programmes
SOCIAL AND RELATIONSHIP CAPITAL
`331.12 crore
Community
investment
CRISIL & India Ratings
Rated by two domestic
rating agencies
25
Strong network of
global and domestic
relationship banks
4
Independent
Directors
NATURAL CAPITAL
525 mn GJ
Energy
consumed
270 mn m3
Water
consumed
474 mn tonnes
Coal used
R&R Zinc India
448 mn tonnes
Including 32.9 million tonnes
of zinc-lead metal and
914.2 million ounces of silver
R&R Zinc
International
566.4 mn tonnes
Including 30.3 million
tonnes of metal
R&R Oil & Gas
1,229 mmboe
Gross proved and probable
reserves and resources
EXPLORE
We invest selectively in exploration
and appraisal to extend mine and
reservoir life
DEVELOP
We develop world-class assets,
using the latest technology to
optimise productivity
EXTRACT
We operate low-cost mines and oil
fields, with a clear focus on safety
and efficiency
PROCESS
We focus on operational excellence
and high asset utilisation to deliver
top quartile cost performance and
strong cash flow
MARKET
We supply our commodities to
customers in a wide range of
industry sectors, from automotive
to construction, from energy to
consumer goods
RESTORE
We manage our long-life assets as
effectively as possible and return
them to a natural state at the end
of their useful life
*before exceptional items
`86,863 crore
Turnover
`27,341 crore
EBIDTA
`12,151 crore
Attributable PAT*
`32.80/share
Earnings per share
(EPS)*
`13,821 crore
FCF post-capex
~19%
ROCE
~`34,500 crore
Total contribution
to the exchequer
`9.5/share
Dividend paid
0.9x
Net Debt to EBITDA
Production across various businesses
Zinc India:
1.0 mtpa
Mined metal
Zinc International:
58 kt
BMM
Oil & Gas:
162 kboepd
706 tonnes
Silver
145 kt
Gamsberg
Power:
11.3 bn kWh
Steel:
1.2 MnT
Aluminium:
1.8 mtpa
Alumina
2 mtpa
Aluminium
6.49%
Attrition rate
11.23%
Diversity ratio
Pig Iron:
596 kt
Copper:
101 kt
0.55
Lost Time Injury
Frequency Rate (LTIFR)
42 mn
CSR programme
beneficiaries
1,800
Operational
Nand Ghars
2,300+
Nand Ghars
built
30.7%
Water recycled
2.03 mn m3
Water savings
2,193
Youth benefited from
employment based
skills training
110%
Fly Ash utilisation rate
94%
High Volume Low
Toxicity (HVLT) effect
waste recycled
58.93 mn tCO2e
GHG emissions:
Scope 1
1.31 mn tCO2e
GHG emissions:
Scope 2
38
39
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report STRATEGIC PRIORITIES
Focus areas integral to our
decision-making
As part of our long-term roadmap, we have five strategic focus areas along which we
determine our progress and deliver consistent stakeholder value. They are intricately
linked to our material issues, opportunity landscape and risk management protocol, and
hence form a key part of our integrated decision-making process. Progress and outlook
across each of these focus areas have been summarised below.
< BACK TO CONTENTS
Augment our Reserves &
Resources (R&R) base
We look at ways to expand our R&R base
through targeted and disciplined exploration
programmes. Our exploration teams aim to
discover mineral and oil deposits in a safe
and responsible manner, and to replenish the
resources that support our future growth
ambitions.
Continue focus on
world-class ESG performance
We operate as a responsible business, focusing
on achieving ‘zero harm, zero discharge and zero
wastage’, and thus minimising our impact on the
environment and society.
We promote social inclusion across our
operations to promote inclusive growth.
Ensure that 40% of all new projects
have a carbon rating of 4-star and
above
29,000 Nand Ghars to be
constructed by 2025
Skilling and employment creation for
60,000 youths
Vision
Our safety vision: Everyone goes
home safe
Our environment vision: Zero net
environmental impact
Our health vision: No impact on
employees, BPs and communities
due to our operations
Our social performance vision: To
become a developer of choice in
our areas of operation
Our carbon vision: To substantially
decarbonise by 2050
FY2021 update
8 fatalities occurred in the fiscal year;
there are programmes put in place to
ensure better investigation quality and
leadership oversight to avoid repeats
This year we focused on critical risks
New standards for business partner
management introduced along with
uniform monitoring system
existing in our business
LTIFR reported at 0.55
We launched a social performance pilot
project at our critical sites
2300+ Nand Ghars established
We conducted self -assessment across
all BUs to establish the current capacity
Objectives for FY2025
Zero fatality, with 2 fatality-free years
Stack emissions to be 25% of 2018
levels. All tailing facilities to be audited
and actions closed with real-time
monitoring
All performance standards to be
monitoring
developed, implemented and part of
VSAP
Employee and community exposure
Mental health programme to be
Achieve zero social non-compliances.
Become signatories to and participants
in VPSHR. Set up an external SP
advisory body
Achieve 20% reduction in GHG
initiated
An employee at Cairn, Oil & Gas
Employees at BALCO facility
KPIs
Fatalities
TRIFR
No. of Category 5 social
incidents
GHG emission intensity
Number of carbon star
rated projects
Compliance tracking
Source emissions tracking
Personal exposure
monitoring
CSR footprint
Gender diversity
Risks
R1 Health, safety and
environment (HSE)
R2
Managing relationship
with stakeholders
R3
Tailings dam stability
R9
Regulatory and legal risk
FY2021 update
Zinc India
During the year, gross additions of 45
million tonnes were made to R&R prior
to depletion of 15 million tonnes
Combined R&R estimated at
448 million tonnes, containing
32.9 million tonnes of zinc-lead metal
and 914.2 million ounces of silver
Overall mine life continues to be more
than 25 years
Zinc International
Combined mineral resources and ore
reserves estimated at 566.4 million
tonnes, containing 30.3 million tonnes
of metal
Oil & Gas
Commencement of seismic acquisition
and exploration drilling in OALP blocks
spread across Rajasthan, Cambay and
the Northeast shall enable to unlock
the resource potential
Gross proved and probable R&R of
1,229 mmboe
Objectives for FY2022
Oil & Gas: Drilling commenced in
Rajasthan, Cambay & North East for
OALP blocks
Oil & Gas: Evaluating opportunities
to commence drilling campaign of
exploration and appraisal wells to build
on the resource portfolio in Rajasthan
Metals: Continue to build R&R base and
generate new greenfield targets for
our commodities/metals
KPIs
Total 2P+2C Reserves &
Resources in Oil & Gas
Total R&R in Zinc India & ZI
Risks
R1 Health, safety and
environment (HSE)
R5 Discovery risk
R9 Regulatory and legal risk
emission intensity from a 2012 baseline
40
41
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report STRATEGIC PRIORITIES CONTINUED...
Delivering on growth
opportunities
We are focused on growing our operations
organically by developing brownfield
opportunities in our existing portfolio. Our
large, well-diversified low-cost and long-life
asset portfolio offers us attractive expansion
opportunities, which are evaluated based
on our return criteria for long-term value
creation for all stakeholders.
FY2021 update
Zinc India
Total mine development increased by 3% to 95 km in
FY2021
Environment clearance received for CLZS hydro smelter
expansion by 84 kt and Zawar mines expansion by
8 lakh mtpa of ore
Back fill plants were commissioned at Zawarmala and
Mochia mines
Zinc International
Significant ramp up in Gamsberg production with
145 kt zinc MIC in FY2021
Oil & Gas
New gas processing terminal construction completed;
commissioning underway expected to add ~ 100 mmscfd
by Q1 FY2022
Capex growth projects update:
− 74 wells hooked up during FY2021
− Ravva drilling programme completed; ~11 kboepd of
incremental volumes
Implementation of enhanced recovery project in Bhagyam
and Aishwariya Fields
Monetisation of Tight Oil fields through execution of
Aishwariya Barmer Hill project
ESL
Annual steel production at 1.19 million tonnes, down 4%
y-o-y on account of reduced availability of hot metal due
to lower production amidst the disruption caused by the
pandemic
Objectives for FY2022
Zinc India
Further ramp-up of underground mines towards their
design capacity of 1.2 mn mtpa
Combined paste-fill and dry tailing plant at Rajpura Dariba,
which will help increase ore production from 1.2 mtpa
to 2 mtpa
Setting up 300 ktpa greenfield Zinc smelter at
Gamsberg facility
Zinc International
Skorpion Refinery Conversion – detailed BOQ generated,
feasibility report being updated with latest information,
target to get Board approval for execution by Q1 FY2022
Magnetite Project – Feasibility was completed in Q4 FY2021
0.7 mtpa modular plant has been finalised. Project will be put
up for approval for start of execution in Q1 FY2022
The feasibility study for Gamsberg Phase 2 was updated. The
mine design and the new reserve statement was completed
with the Resource to Reserve conversion as scheduled
Oil & Gas
Unlock the potential of the exploration portfolio comprising
OALP and PSC blocks
Infill projects across producing fields to add volume in near
term
ESL
Embark on the expansion journey from 1.5 mtpa to 3 mtpa
To be a steelmaker amongst the top quadrant EBIDTA
percentile group
KPIs
Revenue
ROCE
FCF post-capex
Growth capex
Risks
R8 Cairn related challenges
R9 Regulatory and legal risk
R12 Major project delivery
< BACK TO CONTENTS
Optimise capital
allocation and maintain
a strong balance sheet
Our focus is on generating strong
business cashflows and maintaining
stringent capital discipline in investing
in profitable high IRR projects. Our aim
is to maintain a strong balance sheet
through proactive liability management.
We also review all investments (organic
and acquisitions) based on our stringent
capital allocation framework in order to
maximise shareholder returns.
FY2021 update
Free cash flow (FCF) improvement from `7,130 crore to
`13,821 crore, up 94% y-o-y
Net Debt (ND) increased from `21,426 crore to
`24,414 crore
Net Debt/EBITDA at 0.9x on a consolidated basis
Dividend worth `3,500 crore, `9.5/share distributed in
VEDL
Objectives for FY2022
Generate healthy free cash flow from our operations
Disciplined capex across projects to generate healthy
ROCE
Improve credit ratings
Reduce working capital
Employees at Lanjigarh Plant
Employees at Black Mountain Mining lab
KPIs
FCF post-capex
Net Debt/EBITDA (Consolidated
basis)
EPS (before exceptional items)
Interest cover ratio
Dividend
Risks
R9 Regulatory and legal risk
R10 Tax related matters
R11
Fluctuation in commodity prices
(including oil) and currency
exchange rates
R13 Access to capital
Doswada, Gujarat
42
43
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report STRATEGIC PRIORITIES CONTINUED...
Operational excellence
We strive for all-round operational excellence
to achieve benchmark performance across our
businesses by debottlenecking our assets to
enhance production, supported by improved
digital and technology solutions. Our efforts are
focused on enhancing profitability by optimising
our cost and improving realisations through
prudent marketing strategies.
FY2021 update
Zinc India
Record ore production of 15.5 million tonnes, despite
disruptions on account of COVID-19
Mined metal production of 972 kt and refined zinc-lead
production of 930 kt
Zinc International
BMM achieved consistent production in FY2021 (58 kt)
Gamsberg ramped up significantly with 145 kt production
in FY2021 and several best demonstrated performances
in ore milled tonnes, mill throughput and plant availability.
Production was partly impacted by slope failure in
November 2020, but plant continued to operate, backed
by healthy ore stockpile
Skorpion remained under ‘Care and Maintenance’
following geotechnical instabilities in the open pit
Oil & Gas
Average gross operated production of 162 kboepd for
FY2021, impacted by COVID-19
Liquid handling capacity upgraded by 30%, major facility
systems were commissioned
Aishwariya Barmer Hill surface facility commissioned;
wells being hooked up progressively
Aluminium & Power
Record aluminium production at the smelters at 1,969 kt, up
3% y-o-y
Highest ever PFA sales, 28% increase y-o-y
New products development in FY2021 such as Aluminium
Cylinder Head Alloy, high speed billets, 22 kg and 10 kg ingots
Record alumina production from Lanjigarh refinery at
1,841 kt, up 2% y-o-y due to debottlenecking of the refinery
Locally sourced bauxite of ~3 MnT during the year (56%);
alumina cost of production reduced by ~15% y-o-y at
US$235 per tonne despite COVID-19 related challenges
impacting the businesses
In FY2021, there were no fresh coal imports for our
smelters, thereby reducing import dependency by
~3 million tonnes
Won Radhikhapur coal block in first tranche of commercial
coal block auction
FY2021 cost of production for aluminium ~US$1,347 per
tonne, down by 20% y-o-y
Steel
Increased the EBITDA margin to US$95 per tonne for the
year (against US$78 per tonne in FY2020) even at dip in NSR
by US$7 per tonne, through better control over costs
Decrease in cost by 6 % y-o-y from US$418 per tonne to
US$393 per tonne
Copper and Iron Ore
At Karnataka, production of saleable ore was 5 million
tonnes, 15% higher y-o-y
Revenue increased to `4,528 crore, 31% higher y-o-y
mainly due to twofold increase in sales volume at Goa and
improved margin at Goa, Karnataka and VAB during the year
EBITDA increase to `1,804 crore compared with `878 crore
in FY2020 was mainly due to improved margin and higher
volume at Goa
Continued engagement with the government and local
communities to restart operations at Goa and Tuticorin
< BACK TO CONTENTS
Objectives for FY2022
Zinc India
Sustain cost of production at below US$1,000 per tonne
through efficient ore hauling, higher volume and grades and
higher productivity through ongoing efforts in automation
and digitalisation
Zinc International
Ramp up Gamsberg to design capacity in H1 FY2022
Restart Skorpion post completion of geotechnical studies
and feasibility completion of imported zinc oxides
Oil & Gas
Increase near term volumes by commissioning the gas
processing terminal and completion of surface facilities for
Aishwariya Barmer Hill
Continue to operate at a low cost-base and generate free
cash flow post-capex
Aluminium
Production at Lanjigarh refinery of around 1.8-2 million
tonnes, with aluminium production at smelters around
2.1-2.2 million tonnes
Hot Metal cost of production between between
US$1,475- US$1,575 per tonne
Improve raw material security locally (bauxite and coal)
Increased focus on asset integrity and optimisation, quality,
innovation and digitalisation
Copper & Iron ore
Continue engagement with government and relevant
authorities to enable restart of operations in Goa and
Tuticorin
Increase our footprint in iron ore by continuing to
participate in auctions across the country, including
Jharkhand
Overview of the Mangala Processing Terminal
Securing EC for expansion of production capacity of Pig
Iron plant by 1.7 ltpa
Advocacy for removal of E-auction/trade barrier in
Karnataka
Steel
Ensuring business continuity with greater focus on
reliability centred maintenance
Obtain clean Consent to Operate and environmental
clearance
Raw material securitisation through long - term
contracts; approaching FTA countries for coking coal
KPIs
EBITDA
Adj. EBITDA margin
FCF post-capex
ROCE
Risks
R1
Health, safety and
environment (HSE)
R3
Tailings dam stability
R7
R11
Loss of assets or profit due
to natural calamities
Fluctuation in commodity prices
(including oil) and currency
exchange rates
44
45
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report OPPORTUNITY LANDSCAPE
Responsive to megatrends
Vedanta operates in a dynamic, regulated, and commoditised environment, and is
influenced by megatrends that shape the industry. Key trends* that resonate with us
and we respond to in the current environment are provided below.
T1 BUILDING RESILIENCE
AMID VOLATILITY
The COVID-19 pandemic has altered
business dimensions with uncertainty
becoming the order of the day.
In this light, businesses have started
adapting together and separately,
serving the interests of their
stakeholders and ensuring business
continuity. Scenario planning
straddles four hypothetical ones
which strategic leaders such as
Vedanta can plan for. These include
the following:
a. A ‘passing storm’ response
where the overall healthcare
ecosystem is bolstered post the
pandemic
b.
c.
d.
‘Good company’ scenario where
public-private partnerships will
emerge with new ecosystems
that would encourage innovation
‘Sunrise in the east’ indicating
the shift of power to the eastern
side of the world such as China
‘Lone wolves’ where the
pandemic situation drags on to
engage stricter protocols and
government surveillance
Vedanta’s response: The COVID-19
pandemic is an unprecedented
humanitarian and economic crisis.
Our metal and mining industry
has sought to respond quickly to
protect the health of its employees
and its communities. These steps
are in response to (and often
ahead of) emergency measures
and lockdowns implemented by
governments across the world to
control the spread of the pandemic.
During these testing times, our
priority is to ensure the health
and safety of our employees,
contractors, and stakeholders,
while ensuring business continuity
to the extent possible. At the
Group level, we have formulated
various controls to prevent the
spread of infection and thereby
maintain business continuity.
We formed a business COVID
taskforce formalised from diverse
departments whose task is
to implement strong controls
and SOPs/protocols, audit the
respective units so as to ensure
complete compliance to COVID-19
protocols to prevent the spread
of the infection and to monitor
and report the proceedings to the
business CEO and Group task force.
Working towards employee health and well-being
Based on ‘Deloitte Insights: Tracking the trends 2021’
T2 WINNING BACK INVESTOR
CONFIDENCE
The mining industry lost out on
investor confidence owing to
the far-reaching downcycle that
eroded value post M&A action in
the past year. The companies in
the sector would now need to find
new ways to deliver consistent
shareholder returns, enhance
their environmental, social, and
governance (ESG) performance and
improve their capital and operational
discipline. The scenario is also
becoming increasingly conducive
with historical lows now history.
Captive Power Plant at the Dariba Complex
46
< BACK TO CONTENTS
Vedanta’s response: Our focus
during these times has been to
ensure that we operate optimally
with lowest possible cost of
production.
In FY2021, we were able to
sustain our low-cost advantage in
aluminium by engaging structural
measures. While we have optimised
our coal and bauxite source mix,
we also continued our journey
towards improving our operational
efficiencies and debottlenecking
our assets for improved capacity
utilisation. For Zinc India operations,
we completed 1.2 MnT mined metal
project activities and sustained
production post-transition to a fully
underground mining company.
As we look forward to the year ahead,
we are operationally well positioned
to deliver. In Oil & Gas, we are the
largest private sector producer of
crude oil in India and rank among the
world’s lowest cost producer with
a pipeline of assets in production,
development, and exploration.
In Zinc, we are the world’s largest
fully integrated zinc-lead producer.
In terms of Aluminium, we are India’s
largest primary aluminium producer
supported by our own captive power
generation. We performed
exceedingly well on key
environmental, social and
governance (ESG) aspects during the
year. This is validated by our ranking
in the Dow Jones Sustainability
Index, which improved nine places to
12th globally in our industry.
T3 ESG–GETTING SERIOUS
ABOUT DECARBONISATION
Climate change has become
an accepted reality in business
circles and the risks arising from
the phenomenon are increasingly
becoming part of their strategic
dialogue. The cost of taking action
with respect to decarbonisation
and renewables is also reaching
parity. In this light, the focus from
investment houses is now on
how companies are moving from
strategy to on ground execution
that can show tangible results.
Vedanta’s response: Vedanta
has an unwavering focus on
sustainability, with ESG becoming
a core focus. We have a vision to
sustainably decarbonise by 2050.
To realise specific outcomes, we
have institutionalised a separate
vertical for ESG. We continuously
participate in ESG forums and have
a Group-wide carbon forum with
CEO level engagement.
Moving towards a greener future
47
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report OPPORTUNITY LANDSCAPE CONTINUED...
T4 ESG–OVERCOMING THE
SOCIAL TRUST DEFICIT
There is a clear opportunity for
miners to create social value that
goes beyond compliance. Globally,
high-profile disasters have muddled
the reputation for mining and there
is a tangible trust deficit that many
miners experience. In this context,
miners should explore creating
long-term socioeconomic benefits
for the communities in and around
their impact zones. Measurement
of impact of CSR programmes, for
example, also gains prominence in
this backdrop.
Vedanta’s response: Vedanta aims
to be the developer of choice for
communities, and an enabler for
better livelihoods. Our Nand Ghar
initiative, a novel programme aimed
at women and child empowerment,
has helped create significant impact
in communities around our impact
zones.
Bringing smiles in the
community
T5 ESG–CORPORATE
GOVERNANCE ADDING TO
COMPETITIVE ADVANTAGE
The third pillar of ESG – Governance,
is often underrated, but can have
heavy repercussions if ignored as a
downside risk. However, if managed
prudently, good governance can
change its role to a competitive
advantage. Approach to issues such
as human rights, ethical conduct,
diversity, cybersecurity, and evolving
social norms will need to gain
significance in strategy-making and
Board discussions.
Vedanta’s response: Vedanta
has an illustrious Board with 50%
independent members, that
guides us in our present and future
roadmap. Our corporate behaviour
is led by our core values and policies
that align to good governance.
Working towards a culture
of best practices
48
Wire Rods Dispatch area,
ESL Plant
Technology
deployment at plant
T6 ESG–CREATING AN AGILE
SUPPLY CHAIN
T7 THE PATH TOWARDS
INTEGRATED OPERATIONS
The pandemic has exposed supply
chain risks of mining companies,
which were not actively recognised
before. This validates a relook at how
direct and extended supply chains
work, how inventory is managed
and how cost structures need to be
evaluated. On the mitigation front,
companies need to explore alternate
supply lines, and reduce risk by
creating predictable operations.
Vedanta’s response: Vedanta has an
integrated value-chain which helps
inherently mitigate supply chain risks
to a large extent.
The proliferation of technology
in mining has unlocked several
opportunities in decision-making
and achieving cost advantages.
Digitalisation-led business
integration is a key enabler, and
a factor of achieving distinct
competitive advantage. It results in
predictable outcomes, consequently
achieving better stakeholder trust.
Vedanta’s response: Vedanta
has been at the forefront of
digitalisation in its industry and
has invested in technologies
that not only results in better
efficiencies and integration, but also
enhanced safety in operations.
< BACK TO CONTENTS
T8 ADVANCING THE FUTURE
OF WORK
While there has been an
undercurrent of shifting workplace
practices, the pandemic has
brought a sea change in the way
organisations manage their team,
through remote operations and
work-from-anywhere models. With
the use of Industry 4.0 technologies,
activity-heavy operations such as
mining can also move to remote
models, with minimal human
interactions and larger system
integration. Conventional ways of
working now need to be re-examined
and contemporary working practices
adapted as the new normal.
Vedanta’s response: Vedanta has
been at the forefront of digitalisation
and technology. We have various
initiatives throughout the Group
where remote working is used to
analyse real time data.
For example, at Cairn Oil and Gas,
a pilot is being conducted to use
video analytics to reduce manual
monitoring efforts and leverage
technology to automate the alert
monitoring through business rules.
Operating in a safe
environment
Similarly, long range ultrasonic
testing-based solution is used for the
real-time pipeline monitoring.
COVID Marshal is an AI and ML
based video analytics application
implemented in Vedanta Limited
which analyses the video captured
through CCTVs and provides the
compliance reports. The data
is ingested for the compliance
dashboard which can be accessed
real time by the Management.
In Oil & Gas, a pilot is also being
run where drones are used for
automating survey of pipeline
and rights-of-usage to ascertain
erosion, exposed pipe, vegetation
overgrowth, encroachments and
missing/damaged signs and markers.
At HZL, drones-based technology
is leveraged to provide solutions
for asset maintenance and
sustainability. These solutions
provide automated diagnostics from
safe and frequent aerial inspections
(for transmission lines, pipelines etc.)
and real-time, centralised view of
remote assets.
Building a digital environment
T9 ON THE ROAD TO
ZERO HARM
The safety focus of mining
companies has evolved towards
zero harm, and there is a significant
improvement in mining safety
records. However, there is still
room to improve, and companies
will likely need to integrate different
data pools and systems to effect
better results.
Vedanta’s response: Safety
is a core priority area for
Vedanta, and we have instated
processes and practices to
enable highest standards of
safety for all our people.
T10 MEETING DEMAND FOR
GREEN AND CRITICAL
MINERALS
With the world moving towards
a greener future, the demand for
materials that enable cleaner energy
is on the rise. This poses a clear
opportunity for mining companies,
as their portfolios will be shaped in
response in the near future.
Vedanta’s response: Vedanta is a
core player in unearthing minerals
such as zinc and steel, which are
not only core inputs in realising
renewable infrastructure, but also in
contributing to circular economy.
49
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report RISK MANAGEMENT
Managing and mitigating risks
in a volatile business scenario
RISK GOVERNANCE FRAMEWORK
Board of
Directors
Audit
Committee
GRMC
EXCO
Business Unit Management Teams
GROUP RISK MANAGEMENT FRAMEWORK
EXTERNAL
STRATEGIC
E
V
A
L
U
A
T
E
M ITIG A T E
ID E N TIF Y
M
O
N
I
T
O
R
FINANCIAL
OPERATIONAL
50
As a global natural resources
Company operating in multiple
geographies, our businesses
are exposed to a wide range of
risks. Therefore, it is essential
to have the necessary systems
and a robust governance
framework in place to manage
risk, while balancing the
risk-reward equation expected
by stakeholders.
ENTERPRISE RISK MANAGEMENT
The Group has a multi-layered
risk-management framework that
aims to effectively manage the risks
that our businesses are exposed to
in the course of their operations,
as well as in their strategic actions.
We identify risks at the individual
business level for existing operations
as well as for ongoing projects
through a well-crafted methodology.
Formal discussion on risk
management takes place at business
level review meetings at least once
in a quarter. Every business division
of the Group has evolved its own risk
matrix, which gets reviewed by the
Business Management Committee.
In addition, business divisions have
developed their own risk registers.
Respective businesses review the
risks, changes in the nature and
extent of major risks since the last
assessment, control measures and
further action plans. The control
measures stated in the risk matrix
are also periodically reviewed by
the business management teams
to verify their effectiveness. These
meetings are chaired by the business
< BACK TO CONTENTS
CEOs and attended by CXOs, senior
management and functional heads
concerned. The role of risk officers
at each business and at the Group
level is to create awareness on
risks at the senior management
level, and to develop and nurture a
risk-management culture within the
businesses. The Company’s
risk-mitigation plans are integral to
the KRAs / KPIs of process owners.
The governance of risk management
framework in the businesses is
anchored with the leadership teams.
The Audit & Risk Management
Committee aids the Board in the
risk management process through
identification and assessment
of any changes in risk exposure,
review of risk-control measures
and by approval of remedial
actions, wherever appropriate. The
Committee is, in turn, supported
by the Group Risk Management
Committee, which helps the Audit
& Risk Management Committee in
evaluating the design and operating
effectiveness of the risk-mitigation
programme and the control systems.
The Risk Management Committee
meets at least four times annually
to discuss risks and mitigation
measures. The Committee reviews
the robustness of our framework at
individual businesses and progress
against actions planned for key risks.
Our risk-management framework
is simple and consistent and
provide clarity on managing and
reporting risks to our Board.
Together, our management systems,
organisational structures, processes,
standards and code of conduct
and ethics represent the system of
internal control that governs how
the Group conducts its business and
manages the associated risks.
The Board shoulders the ultimate
responsibility for the management
of risks and for ensuring the
effectiveness of internal control
systems. It includes the Audit
Committee’s report on the risk
matrix, significant risks, and
mitigating actions that we have put
in place. Any systemic weaknesses
identified by the review are
addressed by enhanced procedures
to strengthen the relevant controls,
and these are reviewed regularly.
The Audit Committee is, in turn,
assisted by the Group-level
Risk Management Committee
in evaluating the design and
effectiveness of the risk-mitigation
programme and control systems.
The Group Risk Management
Committee (GRMC) meets every
quarter and comprises the Group
Chief Executive Officer, Group
Chief Financial Officer and Director-
Management Assurance. The Group
Head-Health, Safety, Environment
& Sustainability is invited to attend
these meetings. GRMC discusses
key events impacting the risk profile,
relevant risks and uncertainties,
emerging risks and progress against
planned actions.
Since it is critical to the delivery of
the Group’s strategic objectives,
risk management is embedded in
business-critical activities, functions
and processes. The risk management
framework helps the Company by
aligning operating controls with the
Group’s objectives. It is designed to
manage rather than eliminate the
risk of failure to achieve business
objectives and provides reasonable
and not absolute assurance against
material misstatement or loss.
Materiality and risk tolerance are
key considerations in our decision-
making. The responsibility for
identifying and managing risks lies
with every manager and business
leader.
Additionally, other key risk
governance and oversight
committees in the Group comprise
the following:
Committee of Directors
(COD) which comprises the
Vice Chairman and Group
CFO and supports the Board
by considering, reviewing and
approving all borrowing and
investment-related proposals
within the overall limits approved
by the Board. The invitees to
these committee meetings are
the CEO, business CFOs, Group
Head Treasury and BU Treasury
Heads, depending upon the
agenda matters
The Sustainability Committee
reviews sustainability related risks
Jharsuguda facility
51
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report RISK MANAGEMENT CONTINUED...
Additionally, there are various Group
level Management Committees
(ManComs) such as Procurement
ManCom, Sustainability - HSE
ManCom, CSR ManCom, and so on
which work on identifying risks in
those specific areas and mitigating
them.
Each business has developed its
own risk matrix, which is reviewed
by its respective management
committee/executive committee,
chaired by its CEO. In addition, each
business has developed its own
risk register depending on the size
of its operations and number of
SBUs/ locations. Risks across these
risk registers are aggregated and
evaluated and the Group’s principal
risks are identified, and a response
mechanism is formulated.
This element is an important
component of the overall internal
control process from which the
Board obtains assurance. The scope
of work, authority and resources
of the Management Assurance
Services (MAS) are regularly
reviewed by the Audit Committee.
The responsibilities of MAS include
recommending improvements
in the control environment and
reviewing compliance with our
philosophy, policies and procedures.
The planning of internal audits is
approached from a risk perspective.
In preparing the internal audit plan,
reference is made to the risk matrix,
and inputs are sought from senior
management, business teams and
members of the Audit Committee.
In addition, we refer to past audit
experience, financial analysis and the
prevailing economic and business
environment.
52
R&D facility at Gamsberg, Zinc International
Despite COVID-induced disruptions
Vedanta’s BUs dealt with its impact
extremely well, resulting in an
effective response. This was made
possible owing to the following:
Our safety-first culture that
prioritised people’s health and
well-being
Our collaboration with
communities, governments, and
health experts ensure that leading
practices are followed
Focusing on what is critical to
operations and communities,
while continuing to build
longer-term resilience
Consistent response to the
pandemic across the Group
Establishment of COVID-19
taskforces under seasoned
leaders
Investments in new processes,
procedures, protocols, health-
testing equipment and support
for workforce
As a result, our facilities remained
largely operational during the
pandemic, despite challenges.
Rather, the disruption created an
opportunity for us to identify and
work on certain transformational
aspects for the future. We continue
to remain committed to achieving our
objectives of zero harm, zero wastage
and zero discharge, thus creating
sustainable stakeholder value.
The order in which the risks appear in
the next section does not necessarily
reflect the likelihood of their
occurrence or the relative magnitude
of their impact on Vedanta’s
businesses. The risk direction of
each risk has been reviewed based
on events, economic conditions,
changes in business environment and
regulatory changes during the year.
While Vedanta’s risk management
framework is designed to help the
organisation meet its objectives,
there is no guarantee that the
Group’s risk-management activities
will mitigate or prevent these or
other risks from occurring.
< BACK TO CONTENTS
The Board, with the assistance of the management, conducts periodic and robust assessments of principal risks and
uncertainties of the Group, and tests the financial plans for each risk and uncertainty mentioned below.
SUSTAINABILITY RISKS
R1
Health, safety and environment (HSE)
Impact
Mitigation
Direction
The resources sector is subject
to extensive health, safety and
environmental laws, regulations
and standards. Evolving
requirements and stakeholder
expectations could result in
increased cost or litigation or
threaten the viability of operations
in extreme cases.
Emissions and climate change:
Our global presence exposes us to
a number of jurisdictions in which
regulations or laws have been, or
are being, considered to limit or
reduce emissions. The likely effect
of these changes could be increase
in the cost for fossil fuels, levies
for emissions in excess of certain
permitted levels, and increase in
administrative costs for monitoring
and reporting. Increasing
regulation of greenhouse gas
(GHG) emissions, including the
progressive introduction of carbon
emissions trading mechanisms and
tighter emission reduction targets,
is likely to raise costs and reduce
demand growth.
HSE is a high priority area for Vedanta. Compliance with international and local
regulations and standards, protecting our people, communities and the environment
from harm and our operations from business interruptions are key focus areas
Policies and standards are in place to mitigate and minimise any HSE-related
occurrences. Safety standards issued / continue to be issued to reduce risk level
in high-risk areas. Structured monitoring and a review mechanism and system of
positive compliance reporting are in place
BU leadership continues to emphasise on three focus areas: visible felt leadership,
safety critical tasks and managing business partners
The process to improve learning from incidents is currently being improved with the
aim of reducing re-occurrence of similar incidents
A Vedanta Critical Risk Management programme will be launched to identify critical
risk controls and to measure, monitor and report the control effectiveness
The Company has implemented a set of standards to align its sustainability
framework with international practice. A structured sustainability assurance
programme continues to operate in the business divisions covering environment,
health, safety, community relations and human rights aspects, and is designed to
embed our commitment at the operational level
All businesses have appropriate policies in place for occupational health-related
matters, supported by structured processes, controls and technology
To provide incentives for safe behaviour and effective risk management, safety KPIs
have been built into performance management of all employees
The carbon forum has been re-constituted with updated terms of reference and
representation from all businesses. It has a mandate to develop and recommend to
the ExCo and Board the carbon agenda for the Group
Enhanced focus on renewable power obligations
The Group Companies are actively working on reducing the GHG Emissions Intensity
of our operations
A task force is formulated to assess end-to-end operational requirement for FGD
plant. We continue to engage with various stakeholders on the matter
Giving paramount importance to safety
53
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
RISK MANAGEMENT CONTINUED...
< BACK TO CONTENTS
OPERATIONAL RISKS
Managing relationship with stakeholders
R2
R4
Challenges in Aluminium and Power business
Impact
Mitigation
Direction
Impact
Mitigation
Direction
The continued success of our
existing operations and future
projects are in part dependent on
the broad support and a healthy
relationship with our respective
local communities. Failure to
identify and manage local concerns
and expectations can have a
negative impact on relations and
therefore affect the organisation’s
reputation and social licence to
operate and grow.
CSR approach to community programmes is governed by the following key
considerations: the needs of the local people and the development plan in line with
the new Companies Act in India; CSR guidelines; CSR National Voluntary Guidelines
of the Ministry of Corporate Affairs, Government of India; and the UN’s Sustainable
Development Goals
Our BU teams are proactively engaging with communities and stakeholders through
a proper and structured engagement plan, with the objective of working with them as
partners
Business Executive Committees (Excos) factor in these inputs, and then decide upon
focus areas of CSR and budgets while also aligning with strategic business priorities
All BUs follow well-laid processes for recording and resolving all community grievances
Every business has a dedicated Community Development Manager, who is a part of
the BU Exco. They are supported by dedicated teams of community professionals
Our business leadership teams have periodic engagements with the local
communities to build relations based on trust and mutual benefit. Our businesses
seek to identify and minimise any potentially negative operational impacts and risks
through responsible behaviour - acting transparently and ethically, promoting dialogue
and complying with commitments to stakeholders
Stakeholder engagement is driven basis stakeholder engagement plan at each BU
by CSR and cross-functional teams. Regular social and environment risk assessment
discussions are happening at the BU level
Strategic CSR communication is being worked upon for visibility. Efforts continue to
meet with key stakeholders, showcase our state-of-the-art technology, increase
organic followers and enhance engagement through social media
CSR communication and engagement with all stakeholders – within and outside
communities
R3
Tailings dam stability
Impact
Mitigation
Direction
This signifies release of waste
material leading to loss of life,
injuries, environmental damage,
reputational damage, financial
costs and production impacts.
A tailings dam failure is considered
to be a catastrophic risk – i.e. a
very high severity but very low
frequency event that must be
given the highest priority.
The Risk Management Committee included tailings dams on the Group Risk Register
with a requirement for annual internal review and three-yearly external review
Operation of tailings dams is executed by suitably experienced personnel within the
businesses
Third party has been engaged to review tailings dam operations, including
improvement opportunities/remedial works required and the application of
Operational Maintenance and Surveillance (OMS) manuals in all operations. This is
an oversight role in addition to technical design and guidance arranged by respective
business units. Technical guidelines are also being developed
Vedanta Tailings Management Standard has been reviewed, augmented and reissued
including an annual, independent review of every dam and half-yearly CEO sign-off
that dams continue to be managed within design parameters and in accordance with
the last surveillance audit. Move towards dry tailings facilities has commenced
Those responsible for dam management received training from third party and will
receive on-going support and coaching from international consultants
Management standards implemented with business involvement
BUs are expected to ensure ongoing management of all tailings facilities with Exco
oversight with independent third-party assessment on Golder recommendations
implementation status y-o-y
Digitalisation of tailings monitoring facilities is being carried out at the BUs
Tailing management standard is updated to include latest best practices in tailing
management. UNEP/ICMM Global Tailings Standard has been incorporated into
Vedanta Standard during FY2021
Our projects have been
completed and may be subject
to a number of challenges during
operationalisation phase. These
may also include challenges
around sourcing raw materials and
infrastructure-related aspects and
concerns around Ash utilisation /
evacuation.
Improved LME and improved aluminium demand has led to recovery from the fall
which happened last year
Alumina refinery expansion from 2 to 5 mtpa being pursued
Continue to pursue new coal linkages to ensure coal security
Inbound and outbound supply chain across rail, road and ocean including manpower
are functioning well, with no major risks foreseen
Local sourcing of bauxite and alumina from Odisha
Jharsuguda facilities have ramped up satisfactorily
Project teams in place for Ash pond, Red mud, railway infrastructure and FGD
Dedicated teams working towards addressing the issue of new emission norms for
power plants
Global technical experts have been inducted to strengthen operational excellence
Continuous focus on plant operating efficiency improvement programme to achieve
design parameters, manpower rationalisation, logistics and cost reduction initiatives
Continuous augmentation of power security and infrastructure
Strong management team continues to work towards sustainable low-cost of
production, operational excellence and securing key raw material linkages
Talwandi Saboo (TSPL) power plant matters are being addressed structurally by a
competent team
R5
Discovery risk
Impact
Mitigation
Direction
Dedicated exploration cell with continuous focus on enhancing exploration
capabilities
Appropriate organisation and adequate financial allocation in place for exploration
Strategic priority is to add to our R&R by extending resources at a faster rate than
we deplete them, through continuous focus on drilling and exploration programme.
Exploration Executive Committee (Exco) has been established to develop and
implement strategy and review projects Group-wide
Continue to make applications for new exploration tenements in countries in which
we operate under their respective legislative regimes
Exploration-related systems being strengthened, and standardised Group-wide and
new technologies being utilised wherever appropriate
International technical experts and agencies are working closely with our exploration
teams to enhance our capabilities
Increased production rates from
our growth-oriented operations
place demand on exploration
and prospecting initiatives to
replace reserves and resources
at a pace faster than depletion.
A failure in our ability to discover
new reserves, enhance existing
reserves or develop new
operations in sufficient quantities
to maintain or grow the current
level of our reserves could
negatively affect our prospects.
There are numerous uncertainties
inherent in estimating ore and Oil
& Gas reserves, and geological,
technical, and economic
assumptions that are valid at the
time of estimation. These may
change significantly when new
information becomes available.
54
55
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
RISK MANAGEMENT CONTINUED...
R6
Breaches in IT / cybersecurity
< BACK TO CONTENTS
COMPLIANCE RISKS
R9
Regulatory and legal risk
Impact
Mitigation
Direction
Impact
Mitigation
Direction
Like many global organisations,
our reliance on computers and
network technology is increasing.
These systems could be subject
to security breaches resulting in
theft, disclosure, or corruption
of key/strategic information.
Security breaches could also
result in misappropriation of funds
or disruptions to our business
operations. A cybersecurity breach
could have an impact on business
operations.
Group-level focus on formulating necessary frameworks, policies, and procedures in
line with best practices and international standards
Implementation and adoption of various best-in-class tools and technologies for
information security to create a robust security posture
Special focus to strengthen the security landscape of plant technical systems (PTS)
through various initiatives
Adoption of various international standards relating to Information Security, Disaster
Recovery & Business Continuity Management, IT Risk Management and setting up
internal IT processes and practices in line with these standards
Work towards ensuring strict adherence to the IT related SOPs so as to improve
operating effectiveness and continuous focus on employees to go through
mandatory cybersecurity awareness training
Periodic assessment of entire IT system landscapes and governance framework from
vulnerability and penetration perspective in association with reputed expert agencies
and addressing the identified observations in a time-bound manner
R7
Loss of assets or profit due to natural calamities
Impact
Mitigation
Direction
Our operations may be subject
to a number of circumstances
not wholly within the Group’s
control. These include damage
to or breakdown of equipment
or infrastructure, unexpected
geological variations or technical
issues, extreme weather
conditions and natural disasters –
any of which could adversely affect
production and/or costs.
Vedanta has taken appropriate Group insurance cover to mitigate this risk and
Insurance Council is in place that monitors adequacy of coverage and status of claims
An external agency reviews the risk portfolio and adequacy of this cover and assists
us in our insurance portfolio
Our underwriters are reputed institutions and have capacity to underwrite our risk
Established mechanism of periodic insurance review in place at all entities. However,
any occurrence not fully covered by insurance could have an adverse effect on the
Group’s business
Continuous monitoring and periodic review of security function
We continue to focus on capability building within the Group
R8
Cairn related challenges
Impact
Mitigation
Direction
Cairn India has 70% participating
interest in Rajasthan Block. The
production sharing contract (PSC)
of Rajasthan Block runs till 2020.
The Government of India has
granted its approval for ten-year
extension at less favourable terms,
pursuant to its policy for extension
of Pre-NELP Exploration Blocks,
subject to certain conditions. Ramp
up of production vs envisaged may
have impact on profitability.
RJ PSC 2020 extension was issued by the Directorate General of Hydrocarbons
(DGH) subject to certain conditions. Ongoing dialogue and communication with the
government and relevant stakeholders to address the conditions
The applicability of the Pre-NELP Extension Policy to the RJ Block is currently sub
judice
Discussions within teams as well as with partners have been initiated with an
objective to optimise cost across all spheres of operations
Constant engagement with vendors / partners to ensure minimal project delay based
on the current situation and plan to ramp-up
The growth projects are being implemented through an integrated contracting
approach. Contracts have built-in mechanism for risk and reward. Rigorous project
reviews with execution partners / contractors to deliver volumes and returns
Project management committee and project operating committee have been set
to provide support to the outsourcing partner and address issues on time to enable
better quality control as well as timely execution for growth projects
We have operations in many
countries around the globe. These
may be impacted because of legal
and regulatory changes in the
countries in which we operate
resulting in higher operating
costs, and restrictions such as the
imposition or increase in royalties
or taxation rates, export duty,
impacts on mining rights/bans, and
change in legislation.
The Group and its business divisions monitor regulatory developments on an ongoing
basis
Business-level teams identify and meet regulatory obligations and respond to
emerging requirements
Focus has been to communicate our responsible mining credentials through
representations to government and industry associations
Continue to demonstrate the Group’s commitment to sustainability by proactive
environmental, safety and CSR practices. Ongoing engagement with local
community/media/NGOs
SOx-complaint subsidiaries
Common compliance monitoring system being implemented in Group companies.
Legal requirements and a responsible person for compliance have been mapped in
the system
Legal counsels within the Group continue to work on strengthening the compliance
and governance framework and the resolution of legal disputes
Competent in-house legal organisation is in place at all the businesses and the legal
teams have been strengthened with induction of senior legal professionals across all
Group companies
Standard operating procedures (SOPs) have been implemented across our
businesses for compliance monitoring
Greater focus for timely closure of key non-compliances
Contract management framework has been strengthened with the issue of boiler
plate clauses across the Group which will form part of all contracts. All key contract
types have also been standardised
Framework for monitoring performance against anti-bribery and corruption
guidelines is also in place
R10
Tax related matters
Impact
Mitigation
Direction
Our businesses are in a tax regime
and changes in any tax structure
or any tax-related litigation may
impact our profitability.
Tax Council reviews all key tax litigations and provides advice to the Group
Continue to engage with authorities concerned on tax matters
Robust organisation in place at business and Group-level to handle tax-related
matters
Continue to consult and obtain opinion from reputable tax consulting firms on major
tax matters to mitigate the tax risks to the Group and its subsidiaries.
56
57
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
RISK MANAGEMENT CONTINUED...
FINANCIAL RISKS
R11
Fluctuation in commodity prices (including oil)
and currency exchange rates
< BACK TO CONTENTS
R13
Access to capital
Impact
Mitigation
Direction
Impact
Mitigation
Direction
Prices and demand for the Group’s
products may remain volatile/
uncertain and could be influenced
by global economic conditions,
natural disasters, weather,
pandemics, such as the COVID-19
outbreak, political instability, and
so on. Volatility in commodity
prices and demand may adversely
affect our earnings, cash flow and
reserves.
Our assets, earnings and
cash flows are influenced by a
variety of currencies due to our
multi-geographic operations.
Fluctuations in exchange rates
of those currencies may have an
impact on our financials.
The Group’s well-diversified portfolio acts as a hedge against fluctuations in
commodities and delivers cashflows through the cycle
Pursue low-cost production, allowing profitable supply throughout the commodity
price cycle
Vedanta considers exposure to commodity price fluctuations to be integral to the
Group’s business and its usual policy is to sell its products at prevailing market
prices; and not to enter into price hedging arrangements other than for businesses
of custom smelting and purchased alumina, where back-to-back hedging is used to
mitigate pricing risks. Strategic hedge, if any, is taken after appropriate deliberations
and due approval from ExCo
Our forex policy prohibits forex speculation
Robust controls in forex management to hedge currency risk liabilities on a
back-to-back basis
Finance Standing Committee reviews all forex and commodity-related risks and
suggests necessary courses of action as needed by business divisions
We seek to mitigate the impact of short-term currency movements on the businesses
by hedging short-term exposures progressively, based on their maturity. However,
large, or prolonged movements in exchange rates may have a material adverse effect on
the Group’s businesses, operating results, financial condition and/or prospects
Notes to the financial statements in the Annual Report provide details of the
accounting policy followed in calculating the impact of currency translation
R12
Major project delivery
Impact
Mitigation
Direction
Shortfall in achievement of
expansion projects’ stated
objectives leading to challenges
in achieving stated business
milestones – existing and new
growth projects.
Empowered organisation structure has been put in place to drive growth projects.
Project management systems have been streamlined to ensure full accountability and
value stream mapping
Strong focus on safety aspects in the project
Geo-technical audits are being conducted by independent agencies
Engaged global engineering partner to do complete Life of Mine Planning and Capital
Efficiency analysis to ensure that the project objectives are in sync with the BP and
growth targets
Standard specifications and SOPs have been developed for all operations to avoid
variability. Reputed contractors are engaged to ensure the completion of the project
on indicated timelines
Mines are being developed using best-in-class technology and equipment and
ensuring the highest level of productivity and safety. Digitalisation and analytics help
improve productivity and recovery
Stage gate process to review risks and remedy at multiple stages on the way
Robust quality control procedures have also been implemented to check safety and
quality of services / design / actual physical work
Use of reputed international agency for Geotech modelling and technical support,
wherever required
58
The Group may not be able to
meet its payment obligations
when due or may be unable to
borrow funds in the market at an
acceptable price to fund actual
or proposed commitments. A
sustained adverse economic
downturn and/or suspension of
its operation in any business,
affecting revenue and free cash
flow generation, may cause stress
on the Company’s ability to raise
financing at competitive terms.
A focused team continues to work on proactive refinancing initiatives with an
objective to contain cost and extend tenor
The team is actively building the pipeline for long term funds for near to medium term
requirements both for refinancing and growth capex
Track record of good relations with banks, and of raising borrowings in last few years
Regular discussions with rating agencies to build confidence in operating
performance
Business teams ensure continued compliance with the Group’s treasury policies that
govern our financial risk management practices
CRISIL and India Ratings have revised outlook to ‘Stable’ from ‘Negative’ while
affirming the respective ratings
Building talent through teamwork
59
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
< BACK TO CONTENTS
OUR BOARD AND
MANAGEMENT
At Vedanta, we have a three-tier governance framework. This is
constituted by our Board of Directors, who set the overall strategic
vision for the Company, the Management Committee, which sets our
goals and the Executive Committee, which is responsible for running
various functions and implementing our priorities.
8 Directors on Board
4Management Committee
Members
20Executive Committee
Members
60
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
61
BOARD OF DIRECTORS
Our competent and illustrious Board of Directors steers our strategic direction and
assumes ultimate responsibility for corporate governance and creating value.
< BACK TO CONTENTS
Anil Agarwal
Non-Executive Chairman
Navin Agarwal
Executive Vice Chairman
Padmini Somani
Non-Executive Independent Director
Dindayal Jalan
Non-Executive Independent Director
Mr. Anil Agarwal, appointed to the Board in May 2003,
is the Executive Chairman of Vedanta Resources since
March 2005 and chairs the Nominations Committee.
He became the Non-Executive Chairman of Vedanta
Limited in April 2020. Mr. Agarwal founded the Group in
1976 and has over four decades of entrepreneurial and
mining experience. He has led the Group and has helped
shape its strategic vision to contribute to a larger purpose
towards uplifting communities. Under his leadership,
Vedanta has grown from an Indian domestic miner into
a global natural resources group with entities listed in a
number of markets, with a world-class portfolio of large,
diversified, structurally low-cost assets that are capable of
generating strong cash flows.
Mr. Agarwal has this year signed the Giving Pledge,
a movement of global philanthropists who commit to giving
the majority of their wealth to philanthropy or charitable
causes. The Anil Agarwal Foundation is committed
towards empowering communities, transforming lives and
facilitating nation building through sustainable and
inclusive growth.
Nand Ghars have been created as model anganwadis which
are focused on eradicating child malnutrition, providing
education, healthcare, and empowering women with skill
development. The Anil Agarwal Foundation has teamed up
with the Bill & Melinda Gates Foundation to achieve United
Nations Sustainable Development Goal 2, which aims to end
all forms of hunger and malnutrition by 2030.
Mr. Navin Agarwal has been with the Group since its
inception and has four decades of strategic executive
experience. Under his stewardship, Vedanta has enjoyed
leadership position in all the major sectors in which it
operates. Over the years, he has been instrumental in
building a highly successful meritocratic organisation,
anchored by an extraordinary force of 100,000 employees.
He spearheads our strategy through a mix of organic
growth and value-generating acquisitions leading to
Vedanta’s transformation into a globally diversified natural
resources Company.
He is passionate about developing leadership talent and
has been responsible for creating a culture of excellence at
Vedanta through the application of advanced technologies
and global best practices. He drives Vedanta’s unwavering
commitment to the highest standards of corporate
governance and engagement with key stakeholders.
His vision is to gradually unlock the enormous potential
of the natural resources sector and make it an engine of
growth for India. The overarching vision of empowering the
nation by achieving self-sufficiency in the natural resources
sector remains close to his heart.
In recognition of his exceptional distinction in the fields
of business and entrepreneurship and contribution
to the natural resources sector, he was conferred the
‘Industrialist of the Year’ award by the Bombay Management
Association in 2018. He is a fervent advocate of sustainable
development and is committed to the empowerment of
women and the promotion of culture and sports at all levels.
62
Ms. Padmini Somani has been active in the philanthropy
and development space for over 20 years. She is the vision
behind Salaam Bombay Foundation that she founded in
2002, working with more than 3 million children across India.
She has been recognised for her work in youth education,
health, and skilling programmes with the vulnerable and
marginalised populations. Having established the largest
preventive school-based programme in tobacco control in
India, she has also received several awards and recognition
including from the World Health Organization, and the
Mayor’s citation from Mr. Michael Bloomberg. Ms. Somani
holds a Bachelor’s degree in Economics from Sophia College
for Women, Mumbai and completed her Master’s in Financial
Economics from University of London. She has also been
awarded the prestigious Silver Jubilee Pendent and more
recently the ‘Distinguish Alumnus’ award by her Alma Mater.
She is also an alumnus of the London School of Economics
and the London Business School. Ms. Somani serves on
various Boards of companies, organisations, charities, and
educational institutes.
Mr. D.D. Jalan is a Chartered Accountant and has over 40
years of extensive experience in managing business and
finance of large metal & mining companies.
He is currently an entrepreneur and an Independent
Director on the Boards of some prominent companies. In
his previous role, before superannuation in 2016, he was the
Group CFO of London listed Vedanta Resources Plc. and an
Executive Director and CFO of Vedanta Ltd.
Mr. Jalan started his corporate journey in 1978 with
Aditya Birla Group’s Hindusthan Gas & Industries Ltd as
a management trainee, rising upto the rank of Finance &
Commercial head. He was instrumental in transforming the
iron ore business and setting up a greenfield SME business
for Essel Mining, an associate company.
In 1996, he moved to Birla Copper to lead the Finance
& Commercial function. He was part of the core team
instrumental in setting up and operationalising the
greenfield Copper Smelting project into a robust operating
business. He was responsible for raising finance, building
the finance team, putting in place strong business process
and systems, negotiating stable sources for long-term raw
material supplies, setting up commodity hedging desk and
building a robust marketing organisation.
In the year 2001, he moved to Sterlite Industries (now
Vedanta Ltd) as CEO of its Copper mining business
in Australia for ~5 years. He led the turnaround of the
business, working in a multicultural environment. In 2003,
he was appointed the CFO of Sterlite Industries. In 2005,
he was elevated to CFO of Vedanta Resources PLC, a
FTSE 250, London listed company. In this role he provided
strategic leadership to the Finance function with a clear
focus on enhancing shareholders’ value by improving
capital management, governance framework, systems and
processes, developing a robust Finance team. He closely
worked with the CEO to drive business performance.
63
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report BOARD OF DIRECTORS CONTINUED...
< BACK TO CONTENTS
Sunil Duggal
Whole-Time Director & Chief Executive Officer
Upendra Kumar Sinha
Non-Executive Independent Director
Mahendra Kumar Sharma
Non-Executive Independent Director
Priya Agarwal
Non-Executive Non-Independent Director
Mr. Sunil Duggal became the Chief Executive Officer of
Vedanta Limited from August 1, 2020. Prior to this, he was
the interim Chief Executive Officer of Vedanta Limited from
April 6, 2020. He was appointed the Chief Executive Officer
and Whole-time Director of Hindustan Zinc Limited (HZL)
in 2015. He had been associated with HZL since 2010 as
the Executive Director, and thereafter became the Chief
Operating Officer in 2012, and subsequently the Deputy
Chief Executive Officer in 2014.
In a career spanning over 37 years, he has been a result-
oriented professional, leading high-performance teams
with confidence, and has spent 20+ years in various
leadership roles. His critical ability is to calmly navigate
through tough and challenging times, meticulously nurture
and grow a business, evaluate opportunities and risks,
and successfully drive efficiency and productivity, while
reducing costs and inefficiencies and delivering innovative
solutions to challenges.
His consistent focus on adopting best-in-class mining
and smelting techniques, state-of-the-art environment-
friendly technologies, automation and digitalisation has
enhanced Vedanta’s industry leadership. Born and brought
up in Amritsar, his initial education began from DAV school,
Amritsar. He has an Electrical Engineering degree from the
Thapar Institute of Engineering and Technology, Patiala. He
is an alumnus of the International Institute for Management
Development, Lausanne - Switzerland and the Indian
Institute of Management, Kolkata, India. Before he joined
Vedanta, he was working with Ambuja Cements Limited.
He is serving as the Vice Chairman of International Zinc
Association, President of the Federation of Indian Mineral
Industries, and President of Indian Lead Zinc Development
Association. He has also been appointed as the Chair of
Confederation of Indian Industry National Committee on
Mining.
64
Mr. Sinha has served as the Chairman of Securities and
Exchange Board of India (SEBI) from February 2011 to March
2017. He was instrumental in bringing about key capital
market reforms. Under his leadership, SEBI introduced
significant regulatory amendments to the various acts
enhancing corporate governance and disclosure norms.
Prior to his role in SEBI, he was the Chairman & MD of UTI
Asset Management Company Pvt. Ltd. and has also worked
for the Department of Economic Affairs under the Ministry
of Finance.
Ms. Agarwal brings to the Board her experience in Public
Relations with Ogilvy & Mather and in Rediffusion Y&R . She
has done B.Sc. Psychology with Business Management from
the University of Warwick in the UK. She anchors ESG, CSR,
PR & Communications for the Group.
Mr. Sharma retired in May 2007 as the Vice Chairman of
Hindustan Unilever Limited. As Vice Chairman he had
responsibility for HR, Legal & Secretarial, Corporate
Affairs, Corporate Communications, Corporate Real
Estate functions and New Ventures, Plantations & Export
businesses of the Company.
He displays passion for ensuring the highest standards
of corporate governance and adherence to responsible
and ethical conduct in all aspects of business operations.
He holds a Bachelor’s degree in Arts and Bachelor of Law
Degree from Canning College, University of Lucknow,
Post Graduate Diploma in Personnel Management from
Department of Business Management, University of Delhi
and Diploma in Labour Laws from Indian Law Institute,
Delhi. In 1999, he was nominated to attend Advanced
Management Program at Harvard Business School. He
served on the seven-member Committee constituted by
the Government of India for redrafting the Companies Act
and was also a member of the Naresh Chandra Committee
constituted by the Government of India which formulated
norms for corporate governance in India.
65
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT COMMITTEE
The Management Committee constitutes our organisational leadership and is responsible
for setting targets and goals, and driving key decision-making across focus areas.
< BACK TO CONTENTS
Sunil Duggal
Whole-Time Director & Chief Executive Officer
Sharad Kumar Gargiya
Group Chief Commercial Officer
Madhu Srivastava
Chief Human Resources Officer
Ajay Goel
Deputy Chief Financial Officer
Mr. Gargiya has been appointed as the Group Chief
Commercial Officer of Vedanta from April 2020. He has
been associated with the Vedanta Group since October
1998 and has held key senior leadership roles as Chief
Financial Officer and Chief Commercial Officer across the
Group companies. He has been integral to the Vedanta
Group Executive Committee and the Group Management
Committee. He is a member of the Group Ethics Committee
since 2016, and a leading member of the Group Insurance
Council for over five years.
A versatile leader, with over 22 years of experience, he
formulates and executes strategic initiatives, driving
business excellence, and cultural transformation. He has
contributed significantly to unlocking Vedanta’s business
value through his leadership and strategic roles in telecom
cable, copper, aluminium, power business and zinc. He is
passionate about sustainability and resource productivity.
He has always been an early adopter of advanced
technologies and processes to increase efficiencies and
optimise cost with a focus on building automation and
digitalisation of operational activities. He defines ‘personal
successes’ as his ability to make ‘others successful’. He is a
qualified Chartered Accountant and Bachelor of Commerce.
He has attended the General Management Programme at
Harvard Business School in 2011.
Mr. Duggal became the Chief Executive Officer of Vedanta
Limited from August 1, 2020. Prior to this, he was the
interim Chief Executive Officer of Vedanta Limited from
April 6, 2020. He was appointed the Chief Executive Officer
and Whole-time Director of Hindustan Zinc Limited (HZL)
in 2015. He had been associated with HZL since 2010 as
the Executive Director, and thereafter became the Chief
Operating Officer in 2012, and subsequently the Deputy
Chief Executive Officer in 2014.
In a career spanning over 37 years, he has been a result-
oriented professional, leading high-performance teams
with confidence, and has spent 20+ years in various
leadership roles. His critical ability is to calmly navigate
through tough and challenging times, meticulously nurture
and grow a business, evaluate opportunities and risks
and successfully drive efficiency and productivity, while
reducing costs and inefficiencies and delivering innovative
solutions to challenges.
His consistent focus on adopting best-in-class mining
and smelting techniques, state-of-the-art environment-
friendly technologies, automation and digitalisation has
enhanced Vedanta’s industry leadership. Born and brought
up in Amritsar, his initial education began from DAV school,
Amritsar. He has an Electrical Engineering degree from the
Thapar Institute of Engineering and Technology, Patiala. He
is an alumnus of the International Institute for Management
Development, Lausanne - Switzerland and the Indian
Institute of Management, Kolkata, India. Before he joined
Vedanta, he was working with Ambuja Cements Limited.
He is serving as the Vice Chairman of International Zinc
Association, President of the Federation of Indian Mineral
Industries, and President of Indian Lead Zinc Development
Association. He has also been appointed as the Chair
of Confederation of Indian Industry National
Committee on Mining.
66
Mr. Goel has been appointed as Deputy Chief Financial
Officer of Vedanta Limited, effective March 23, 2021
based at Delhi. As Deputy CFO, Mr. Goel is responsible
for Financial Planning & Analysis, Accounting and
Consolidation, Controllership, Audit, Tax, Secretarial &
Compliance and Risk Management. He is driving business
performance monitoring and reporting with a focus on
benchmarking and analytics. He brings 21 years of rich
experience in global multinational companies in FMCG
sector, including General Electric, Nestle, Coca Cola and
Diageo. Mr. Goel joins us from Diageo - USL and under
his leadership, the company achieved highest standards
of Corporate Governance, Reporting, Tax management,
Treasury restructuring, Optimization of borrowing costs.
Ajay is a national rank holder both as Chartered Accountant
and Company Secretary. He earlier completed his B.Com
(Hon.) from St. Xavier’s College in Accounting and Business
Management.
Ms. Srivastava was appointed the Chief Human Resources
Officer of the Vedanta Group in December 2018. She has
been associated with Vedanta for over eight years, and in
her earlier role, she was the Chief Human Resources Officer
of Cairn - Oil and Gas business for close to three years.
During this time, she was also leading Talent Acquisition
and Diversity & Inclusion functions for the Group. Under her
leadership, Vedanta has put in place the right HR policies,
progressive and globally benchmarked people practices
and frameworks for talent acquisition, talent management,
performance management and rewards and recognition.
She has over two decades of experience across HR
and sales, marketing and operations, spanning the
Fast-Moving Consumer Goods (FMCG), Telecom,
Information Technology Enabled Service (ITES),
Banking, Financial Services and Insurance (BFSI) and
natural resources industries. Ms. Srivastava started
her professional journey in 1999 with Godrej, where she
handled sales in Gujarat and Maharashtra and later moved
to the Corporate Sales & Marketing role. Post working with
companies such as GE Capital and Reliance in operations
and marketing profiles, she started her HR journey in 2006
by joining Genpact as Assistant Vice President, Talent
Acquisition where she led middle-management hiring.
Subsequently, she went on to lead the recruitments for
Citibank’s India operations as Vice President, Human
Resource before joining the Vedanta Group in 2012.
Ms. Srivastava completed her Post Graduate Diploma in
Management (PGDM) in marketing and sales from the Indian
Institute of Management Ahmedabad.
67
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report EXECUTIVE COMMITTEE
The Executive Committee focuses on implementing key initiatives and interventions
and leads strategy execution from the front.
Ajay Goel
Deputy Chief Financial Officer
Mr. Goel has been appointed as Deputy
Chief Financial Officer of Vedanta
Limited, effective March 23, 2021 based
at Delhi. As Deputy CFO, Mr. Goel is
responsible for Financial Planning &
Analysis, Accounting and Consolidation,
Controllership, Audit, Tax, Secretarial
& Compliance and Risk Management.
He is driving business performance
monitoring and reporting with a focus on
benchmarking and analytics. He brings
21 years of rich experience in global
multinational companies in FMCG sector,
including General Electric, Nestle, Coca
Cola and Diageo. Mr. Goel joins us from
Diageo - USL and under his leadership,
the company achieved highest standards
of Corporate Governance, Reporting, Tax
management, Treasury restructuring,
Optimization of borrowing costs. Ajay is
a national rank holder both as Chartered
Accountant and Company Secretary. He
earlier completed his B.Com (Hon.) from
St. Xavier’s College in Accounting and
Business Management.
Arun Misra
Chief Executive Officer, HZL
Mr. Misra was appointed as the Chief
Executive Officer, HZL from August
2020. Prior to this he held the position
of Deputy Chief Executive Officer, HZL
since joining the company in November
20, 2019. In his previous role, he was
associated with TATA Steel Limited as
Vice President of raw materials. He has
over three decades of rich and diverse
experience in leading various strategic
positions within TATA Steel. Mr. Misra
holds a BTech in Electrical Engineering
from IIT Kharagpur, a diploma in mining
and beneficiation from the University of
New South Wales Sydney and a diploma
in general management from CEDEP,
France.
Laxman Shekhawat
Business Head, VZI
Mr. Shekhawat was appointed as the
Business Head, anchoring the ManCom of
Vedanta’s Zinc International Division and
CMT to drive business growth on 24 April
2020. Previously, Mr. Shekhawat held
the role of Director - Operations of HZL
from February 2019. He holds a BTech in
Mining Engineering and has been working
with HZL since 1990. With over three
decades of experience in mining and
engineering, Mr. Shekhawat has served in
various leadership positions in mining and
engineering companies for over a decade.
He is instrumental in developing and
executing strategies to unlock the full
potential of HZL mines and bring the best
practices in the mining portfolio. In 2017,
he was awarded the prestigious National
Geoscience Award by the President
of India.
Chhavi Nath Singh
Chief Executing Officer,
Aluminium - Jharsuguda, Odisha
Mr. Singh is the Chief Executive
Officer of our Aluminium business-
Jharsuguda, Odisha since July 2019.
He joined Vedanta in 2016 as the
Chief Operating Officer of Talwandi
Sabo Power Ltd. He has a rich 38-year
experience in the power industry
and has played a pivotal role in the
stabilisation of TSPL’s operations. He
has also worked for companies such as
the National Thermal Power Corporation
Ltd., Essar Power and JSW Energy Ltd.
He has a post-graduate degree (PGDBM)
from the Management Development
Institute, Gurgaon and a Bachelor’s
degree in Mechanical Engineering from
the Motilal Nehru National Institute of
Technology, Allahabad (formerly Motilal
Nehru Regional Engineering College).
68
< BACK TO CONTENTS
Rahul Sharma
Deputy Chief Executive Officer,
Aluminium
Mr. Sharma joined the Group in 1998 and
is the Deputy Chief Executive Officer of
Vedanta’s Aluminium business since 24
November 2020. Before he took up this
role, he worked as the Chief Executive
Abhijit Pati,
Chief Executive Officer, BALCO
Mr. Pati was appointed as the Chief
Executive Officer of BALCO in July 2019.
Prior to this, he was the Chief Executive
Officer (Acting) of Alumina business from
April 2019 and as Director — Corporate
Strategy (Aluminium and Power).
Mr. Sharma has a diversified experience
of over 25 years and has held leadership
positions at Vedanta Limited and Sterlite
Technologies Ltd. Before he joined
Vedanta, he was the Chief Marketing
Officer (Domestic and International) and
Business Head - Integrated Management
System at Sterlite Technologies Ltd.
He is one of the prominent personalities
of India’s Metal & Mining industry and
has been playing a significant role in
formulating and catalysing various
policies and creating a strategic
framework for numerous government
reforms for the development of
exploration, mining and non-ferrous
metal sector in the country in the most
sustainable manner. He is also the office
Officer of our Aluminium business,
Jharsuguda from March 2015. Earlier, he
was the President and Chief Operating
Officer of our Aluminium and Power
business at Odisha since April 2012. He
has over three decades of experience in
the aluminium industry. Prior to joining
us, he was the Vice President at Hindalco
Industries Limited. He started his career
as an engineer with the Indian Aluminium
Company in 1989. He received the
‘Exceptional Contributor Award’ from the
Aditya Birla Group Chairman, Mr. Kumar
Mangalam Birla for his significant
contribution to turn around Hirakud
Aluminium Smelter in 2006 and won the
prestigious British Sword of Honor for the
Hirakud Smelter in 1999.
Ajay Kapur
Chief Executive Officer,
Aluminium and Power
Mr. Kapur was appointed as the Chief
Executive Officer, Aluminium and Power in
March 2019, and took on an additional role
as the Managing Director of Commercial
on 24 November 2020. He leads the
Aluminium and Power business for
Vedanta comprising 2.3 mtpa installed
smelter capacity, 8 GW of power and
2 mtpa of alumina refinery. Prior to his
appointment at Vedanta Limited, he was
the Managing Director and Chief Executive
bearer of various eminent industry
associations, including the current
President of Aluminium Association
of India (AAI), Chairman of Indian
Captive Power Producers Association
(ICPPA), and Co-Chair of FICCI’s
Mining Committee. In recognition of
his exemplary leadership, he has been
conferred various awards and accolades
including People’s CEO of the Year Award
2020 and Business Leader of the Year
Award at the International Conference
on Non-Ferrous Metals-2017 for his
contribution to India’s Metal and Mining
industry. An IIM alumnus (Ahmedabad
Executive General Management
programme), Mr. Sharma has an MBA in
Marketing and a B.E. in Electronics and
Communication.
He is a member of the Bureau of Energy
Efficiency under the Ministry of Power,
Government of India. He also holds the
position of Vice President in Aluminium
Association of India and is member of
the Governing body. He is a two time
gold medallist from esteemed institutes
such as the Calcutta University and
International Management Institute,
New Delhi. Mr. Pati has a first-class
honours Bachelor’s degree in Chemical
Engineering from the Calcutta
University and a Master’s in Business
Administration from the International
Management Institute, New Delhi.
Officer of Ambuja Cements. He started
his career as an Executive Assistant to
the founder and then Managing Director.
He went on to handle various strategic
positions at Ambuja Cements with his last
position as the MD and CEO. Mr. Kapur
holds a Bachelor’s degree in economics
from St. Xavier’s College, Mumbai, MBA
from KJ Somaiya Institute, Mumbai and
is an alumnus of Wharton’s Advanced
Management Programme.
69
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report EXECUTIVE COMMITTEE CONTINUED...
< BACK TO CONTENTS
Vikas Sharma,
Chief Executive Officer, TSPL
Mr. Sharma was appointed as the
Chief Executive Officer of TSPL-our
Power business in July 2019. He was
appointed as the Whole-time Director
designated as the CEO and WTD from
October 2019. Prior to his stint at
TSPL, he was appointed as the Chief
Executive Officer and Whole-time
Director of BALCO in March 2017. He
has experience of 31+ years in various
national and multinational companies.
He has been with HMT Watches Limited,
Su-Raj Diamonds India Private Limited,
AMP India Private Limited (now Tyco
Electronics), Praxair India Private Limited,
Jindal Praxair Oxygen Company Limited
and JSW Steel Limited in various
key positions.
Mr. Sharma joined Vedanta Group as the
location head of Chanderiya Smelter of
HZL in 2012 and was gradually elevated to
the Chief Operating Officer of Smelters
division of HZL in June 2014. During his
tenure at Vedanta, he played an integral
role in the Company’s growth and
made significant contribution in safety,
productivity and people development.
He holds a Bachelor’s degree (Hons) in
Mechanical Engineering from Engineering
College Kota, University of Rajasthan and
a Master’s in Business Administration
in Marketing from Sikkim Manipal
University, Gangtok, India.
Prachur Sah,
Deputy Chief Executive Officer,
Cairn Oil & Gas
Mr. Shah joined the Group as Director
New Ventures and Reserves of Cairn
from 21 August 2018, and was made
the Deputy Chief Executive Officer
of Cairn Oil & Gas on 19 October
2020. He has since played a key role
towards realising Cairn’s broader
vision and is responsible for unlocking
value through monetisation of our
new exploration blocks under OALP.
Prior to joining the Group, Mr. Sah
had 19 years of rich and diverse
experience at Schlumberger and has
worked across geographies including
Houston, South America, UAE and
India. At Schlumberger, he held various
roles in Operations, Transformation
and Business Development, and
left Schlumberger as the Managing
Director for India, Bangladesh and
Sri Lanka. Mr. Sah holds a Bachelor’s
in Electrical and Electronics from
IIT Mumbai and a Master’s in Oil and
Gas Management from Heriot Watt
University, Edinburgh.
Pankaj Kumar,
Chief Executive Officer (Copper
Operations Tuticorin, Silvassa and
Fujairah Gold FZC & Director, MEL)
Mr. Kumar was appointed as the
Chief Executive Officer of our copper
operations in Tuticorin, Silvassa and
Fujairah Gold FZC and Director of MEL
in March 2019. He is also anchoring the
Group’s Quality Assurance. In his career
of over three decades, he has worked
with large conglomerates such as Tata
Steel, Mittal Steel, Adani Ports, Gujarat
Guardian Limited and United Breweries
Limited. Prior to joining us at Sterlite
Copper as Chief Executive Officer, he was
the Chief Operating Officer at Hindustan
Zinc Limited. Mr. Kumar holds a BTech
(Hons.) in Mechanical Engineering from
the Indian Institute of Technology
Kharagpur and a post-graduate
diploma in Business Management with
specialisation in Operations Management
and Information Technology from
XLRI - Xavier School of Management,
Jamshedpur, India.
70
Sauvick Mazumdar,
Chief Executive Officer, Sesa Goa
Mr. Mazumdar is the Chief Executive
Officer of Sesa Goa and was appointed on
12 July 2019. Prior to this role he was the
Deputy Chief Executive Officer of Sesa
Goa and Vice President since 1 October
2016. He joined the organisation in 1994;
he is a home-grown leader who rose to
the ranks from a GET to CEO. He is a
well-seasoned executive with 24+ years
of extensive experience, having built a
reliable reputation for achieving business
growth through strategic direction,
diverse perspectives and proactive
Pankaj Malhan,
Chief Executive Officer and
Whole-time Director, ESL
Mr. Malhan is the Chief Executive Officer
and Whole-time Director of ESL and
joined ESL in October 2018. He has over
20 years of industry experience and
joined ESL from Tata Steel, where he was
the Head of Engineering and Project.
He was responsible for leading Tata
Steel’s capital expansion programmes.
He was associated with the Tata Group
since 2000, and has held various senior
Dilip Golani,
Management Assurance Services,
Vedanta Group
Mr. Golani now heads the Group’s
Management Assurance Services
function. He previously headed the Sales
and Marketing division for HZL and the
Group’s Performance Management
function. Prior to joining the Group
in April 2000, he was a member of
the Unilever corporate audit team
responsible for auditing the Unilever
group companies in Central Asia, the
Middle East and Africa. Prior to that,
Andrew Lewin,
Group Health, Safety, Environment
and Sustainability Head
Mr. Lewin joined as the Group Health,
Safety, Environment and Sustainability
Head in February 2020. He has over
33 years of experience within mining and
Oil & Gas industries. He was previously
the Managing Director at Spectrum Risk
Consulting, Australia. He has also held
multiple senior roles at BHP Billiton,
Newmont Mining Corporation and other
leadership. He is responsible for the overall
operations and expansion projects of the
Iron Ore & Ferro Alloys business within India
— Goa and Karnataka along with value-
added business (pig iron, met coke, and
power), Jharkhand, Bellary, overseas
projects at Liberia and Ferro Alloys
business at FACOR in Odisha. He holds a
BTech degree in Mining Engineering from
the National Institute of Technology,
Surathkal Karnataka and a First-Class
Mines Manager’s Certificate of
Competency from DGMS, the Government
of India, Dhanbad.
management positions at Tata Steel,
Tata Blue Scope Steel Limited and Tata
Power Limited. Prior to joining the Tata
Group, he had worked with Indian Acrylics
Limited and Fisher Rosemount Limited.
He holds a BTech in Instrumentation and
Control from the National Institute of
Technology, Jalandhar, India, and also has
done post-graduate diploma in Business
Management from XLRI – Xavier School
of Management, Jamshedpur, India.
he was responsible for managing
operations and marketing functions
for one of the exports businesses of
Unilever India. He has over 31 years of
experience and has previously worked
with organisations such as Union Carbide
India Limited and Ranbaxy Laboratories
Limited. He holds a BTech in Mechanical
Engineering and has completed his post-
graduate studies in Industrial Engineering
and Management from the National
Institute of Industrial Engineering,
Mumbai, India.
companies across the US, Australia
and UK with responsibility for health,
safety, environment and sustainability
assurance. He has done PhD in Chemistry
from the University of Waterloo and
Postgraduate Diploma in Health and
Safety from Aston University, England.
He also holds an M.Sc. degree in physics
from The University of Manchester, and a
BSc (Hons) degree in Chemistry from the
University of Bristol.
71
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report EXECUTIVE COMMITTEE CONTINUED...
< BACK TO CONTENTS
Varun Kapoor,
Director – Investor Relations,
Vedanta Group
Mr. Kapoor was appointed as the
Director – Investor Relations for the
Group on 2 January 2021. Before he
took up this role, he was the Chief
(Strategy & Business Excellence) of
Cairn Oil & Gas business. He is working
towards enhancing the quality, depth
and diversity of our shareholder base
and investors to ensure optimum
valuation for the Company. Mr. Kapoor
has 18+ years of rich leadership and
employee experience, having joined
Roma Balwani,
Senior Director,
Group Communications and Brand
Ms. Balwani was appointed as the Senior
Director of Communications and Brand
from December 2020. Prior to this role,
she was holding the position as the
Director of Communications and Brand
since October 2019. Earlier she was
Sr. Advisor from April 2019. Her prior
stint with Vedanta was as the President-
Group Communications, Sustainability
and Corporate Social Responsibility
from April 2014 till August 2017. Prior to
joining our Company, she was the Chief
Communications Officer at Mahindra
and Mahindra Limited. With over three
decades of experience, she has won
several Indian and international awards
and accolades and she speaks at several
summits on Sustainable Development
Anand Laxshmivarahan R,
Interim Group Chief Digital Officer
(CDO), Vedanta Limited
Mr. Anand was appointed as the Interim
Group Chief Digital Officer (CDO) for
Vedanta Limited in June 2020. His
responsibilities entail driving digital-led
interventions across the business with
a focus on achieving the organisation’s
goals on enhanced reserves, improved
recovery, enhanced Health, Safety,
Security and Environment (HSSE),
operational and people excellence.
He joined Vedanta in 2018 as the Chief
Digital Officer in the Oil & Gas business.
Mr. Anand is a Digital Transformation
Leader with over 21 years of industry
experience working with global
multinationals in various key business
and technical roles. He has two decades
Cairn in 2008 and has worked in various
domains such as Mergers & Acquisitions,
Commercial & New Business, Gas SBU
Asset Management, Business Strategy,
Corporate Planning and Business
Excellence. Prior to joining Cairn,
Mr. Kapoor had experience in buy-side
and sell-side equity research with
top-tier funds and banks like Fidelity,
Deutsche Bank, S&P Crisil. He holds a
PGDM from IIM Calcutta and a Master’s
and Bachelor’s degree in Economics from
Delhi University.
and Communications in India and the
overseas. She has the distinction of
being included for three consecutive
years in the Holmes Global Report, USA,
a recognition in the Global Influence 100
listing of In-house Communicators. She is
a Director on the Board of John Cockerill,
India (formerly CMI FPE Ltd.), the Indian
subsidiary of the Belgian company John
Cockerill.
Ms. Balwani also chairs the CSR and
NR Committees as a Board member.
She graduated in Economics from the
Mumbai University and completed her
post-graduation (Diploma) in marketing
management from Sasmira’s Institute
of Management Studies and Research,
Mumbai and has completed executive
management programme at Harvard
Business School, Massachusetts, USA.
of exposure to systems and technologies
within Oil & Gas and Manufacturing
domains. His previous experiences
include Oil & Gas consulting working with
global majors on digital transformation
programmes.
Before joining Vedanta, he was with
industrial automation companies
focusing primarily on process control
and automation systems within
manufacturing and Oil & Gas segments.
He has worked with companies such
as Wipro Technologies, Honeywell,
General Electric and Siemens. He has
completed his BE in Electronics and
Telecommunication from Dr. Babasaheb
Ambedkar Marathwada University,
Maharashtra and Master’s from Indian
Institute of Management Bangalore.
Dhiraj Nayyar,
Director, Economics and Policy,
Vedanta Limited
Mr. Nayyar was appointed as the Director,
Economics and Policy in October 2019.
Prior to this appointment, he was the
Chief Economist of Vedanta Limited since
October 2018. Before joining Vedanta,
he was Officer on Special Duty and Head,
Economics, Finance and Commerce at
NITI Aayog, Government of India (GOI)
from October 2015 till October 2018. He
has 15+ years of experience in the realm
of economics. In this role, functionally
equivalent to Joint Secretary, GoI, he was
responsible for all policy matters related
to the Departments of Economic Affairs,
Revenue, Financial Services, Investment
and Public Asset Management and
Commerce. He was Secretary of the
Inter-Ministerial Committee on Sick and
Loss-Making Public-Sector Enterprises,
Member-Secretary of NITI Aayog’s
Committee on Strategic Disinvestment
and Member, Spices Board. Prior to
joining the government, Mr. Nayyar
spent several years in the media in senior
positions. He was an India columnist at
Bloomberg View, Managing Editor at The
Quint, Editor-at-large at firstpost.com,
Deputy Editor at India Today and Opinion
Editor at Financial Express. He did
his Bachelor’s in economics from
St. Stephen’s College, Delhi University,
MA in Philosophy, Politics and Economics
from Merton College, Oxford and M.
Phil in Development Economics from
Trinity College, Cambridge where he also
pursued doctoral research in Economics
and taught Development Economics.
Leena Verenkar,
Head -Corporate Social
Responsibility, Vedanta
Ms. Verenkar was appointed the Head
of Corporate Social responsibility of
Vedanta in October 2019. She also
holds the additional responsibility of
the Department of Chief of Advocacy &
Public relations and Head of Corporate
Social Responsibility for Sesa Iron Ore
Business since 2015. Prior to this role,
she was the Head of CSR of Iron Ore,
Goa since 2010. Leena started her
career with our Company in 1996, in the
field of environment management and
compliance and led the environment
team for 12 years. She has 25+ years of
experience in environment management,
community relations, advocacy and public
relations. She holds a Master’s degree
in Microbiology from the Goa University
and in Ecology and Environment from the
Bhopal University, India. She has Fulbright
Scholarship by the US Foundation in India
and LEAD fellowship by Lead India. She
was also recognised as the Women Leader
of the Year by Economic Times and 100
Most Impacful CSR Leaders (a global
listing) by World CSR in 2017. She has been
a recipient of Great Manager’s Award
in 2019.
Vikash Jain,
Group General Counsel- Legal
Mr. Jain was appointed as the General
Counsel for legal matters across the
Group in March 2021. He also continues
to hold the responsibility as the General
Counsel – Oil & Gas Business, Vedanta
Limited. He joined our Company in
March 2016 as Vice President and
General Counsel – Aluminium Business.
He has over 25 years of experience in
handling complex litigations, contract
negotiations, regulatory issues,
compliance assurance, mergers and
acquisitions, foreign collaborations, joint
ventures, advocacy, investor relations
and Taxation (Direct & Indirect) etc. Prior
to joining Vedanta, he has had experience
working with organisations like
Transocean, Jubilant Group, Hindustan
Oil Exploration Company Limited,
Endurance Group, and so on. A law
graduate, he is also a qualified company
secretary and an associate member of
the Insurance Institute of India. He is also
pursuing his Executive MBA from the
Indian School of Business, Hyderabad.
72
73
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
WELL-POSITIONED TO
DELIVER SUSTAINABLE
SOLUTIONS
At Vedanta, our sustainability approach is driven by the overarching desire to
address the expectations of our stakeholders, while delivering strong business
performance. As one of the world's leading diversified natural resource companies
with business operations in multiple geographies spanning continents, we are
mindful of our commitments to society, our people and the environment.
KEY STATISTICS:
42 million
CSR programme beneficiaries
(FY2020: 3.26 million)
60 million mt
Carbon footprint
(FY2020: 59 million mt)
8 fatalities
in FY2021 (FY2020: 7)
1.89 million GJ
Energy conserved
(FY2020: 1.75 million GJ)
~`331 crore
Community investment
(FY2020: `296 crore)
30.7%
Water recycling rate
(FY2020: 29%)
74
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
75
SUSTAINABILITY AND ESG
A firm sustainability
roadmap
Our vision is to become a developer of choice in the areas of our operations and
create long-term value for all our stakeholders. To deliver on this promise, we have
developed the Vedanta Sustainability Framework that enables our business units to
embed sustainable business principles into their systems and procedures.
VEDANTA SUSTAINABILITY FRAMEWORK
Developed in line with global standards from
international bodies such as International Council
on Mining and Metals (ICMM), International Finance
Corporation (IFC), Organisation for Economic
Co-operation and Development (OECD), United
Nations Global Compact (UNGC) and SDGs, the
Framework comprises several policies, standards
and guidance notes which facilitate its execution.
8 Policies
Biodiversity, Energy & Carbon, HIV-AIDS,
Human Rights, Social, Supplier & Contractor
Sustainability Management, Water
87
Standards & Guidance Notes
Covering all the policy subject areas
In line with ICMM, IFC Performance Standards,
Global Reporting Initiative (GRI)
Robust monitoring
Annual audit (VSAP) conducted at all Vedanta
locations to check compliance with VSF
Monitored by Group ExCo
Please refer to the Sustainable Development
Report 2021 for more information
VEDANTA SUSTAINABILITY ASSURANCE
PROCESS (VSAP)
VSAP is our sustainability risk assurance tool,
which is used to assess the compliance of all
our businesses with the Vedanta Sustainability
Framework. This meticulously developed
assurance process helps embed sustainable
development into every activity that we
undertake.
VSAP is an annual process with clear tracking of
results by the Sustainability Committee, and the
Executive Committee, which in turn reports to
the Board.
OUR KEY STAKEHOLDERS
At Vedanta, we engage with several stakeholder
groups while operating our business and creating
measurable social impact. The list below
summarises the key stakeholder groups which
have a bearing on our operations.
VEDANTA
Local Community
Employees
Shareholders, Investors, & Lenders
Civil Society
Industry (Suppliers, Customers, Peers,
Media)
Governments
< BACK TO CONTENTS
VEDANTA SUSTAINABILITY GOVERNANCE
BOARD
SUSTAINABILITY
COMMITTEE
EXECUTIVE
COMMITTEE
Chaired by
Mr. Sunil Duggal
CEO
The Committee meets monthly and is responsible for implementing strategic plans
formulated by the Board, allocating resources in line with delegated authorities and
monitoring the operational and financial performance of the Group.
SUSTAINABLE DEVELOPMENT TEAM
Group (and BUs) HSE & Sustainability Teams
Community
Relations
Environment
Occupational
Health
Safety
Disclosure &
Communication
REVIEW OF SUSTAINABLE DEVELOPMENT TEAM AND SEGMENT BUSINESS COMMITTEE
(Monthly Operational Reviews/Business Management Group Meetings)
OUR ESG MATERIAL ISSUES
We conducted a detailed materiality analysis in FY2020 to identify the most pertinent ESG issues that define our
present and future. They are divided into three intervention categories.
Low
M25 Land Acquisition &
Rehabilitation
High
M1
Energy & Climate Change
Medium
M14 Noise & Vibration
M2 Water Management
M15 Tailings Dam Management
M3 Solid Waste Management
M16 Human Rights
M4 Air Emissions
M5 Biodiversity
M6 Health & Safety
M17 Resource Efficiency
M18 Transparent Disclosure
M19 Materials Management
M7 Community Development
M20 Learning and Development
M8 Supply Chain Sustainability
M21 Use of Recycled Material
M9 Grivance Management
M22 Brand Salience
M10 Compliance to Government Regulations
M23
Innovation
M11 Upholding Rights of Indigenous People
M24 Governance for Sustainability
M12 Ethical Business Practices
M13 Diversity & Equal Opportunity
Act
Manage
Observe
Read our detailed stakeholder engagement process and progress across ESG material issues update in our
Sustainable Development Report 2021
76
77
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report ENVIRONMENT
A multi-pronged approach to
conserve the environment
Our environmental approach is based on improving our existing processes and
systems and proactively adopting more efficient processes for new operations.
We have developed specific objectives and targets as a part of our environmental
commitment and review our performance annually against these priorities.
78
< BACK TO CONTENTS
Energy management
& climate change
As a large consumer of fossil-fuel based power, we
recognise the climate-related risks associated with our
business activities. We understand the implications of
our energy consumption, both in terms of its cost to the
natural environment as well as cost to the operations;
and are committed to meet our energy demands, while
limiting our carbon emissions. We remain fully supportive
of the outcomes of the Paris Agreement and have
taken on carbon reduction targets in alignment with
the Nationally Determined Contributions (NDC) of the
Government of India.
Harnessing wind energy at HZL
UN SDGs and targets linkage
Goal: SDG 12 –
Responsible production
and consumption
Target: 12.2 – Achieve
sustainable management
and efficient use of natural
resources
Goal: SDG 13 –
Climate action
Target: 13.2 - Integrate
climate change measures
into strategies, polices,
and planning
Targets & strategies
We had aligned ourselves with the Nationally Determined
Contributions (NDC) of the Government of India and had
committed to reduce our GHG emissions intensity by
20% by 2025 from a 2012 baseline.
Till FY2021, we have achieved ~13.6 million tonnes of
avoided GHG emissions since 2012. Our long-term target
is to substantially de-carbonise by 2050 and we are
currently on the path to develop a plan.
Performance
GHG EMISSIONS
FY2021
FY2020
FY2019
FY2018
FY2017
1.31
2
3.5
1.2
1.4
(million tCO2e)
58.93
60.24
61
63
55
51
51.7
58.5
52.2
53.1
Scope 1 (direct)
Scope 2 (indirect)
We calculate and report Greenhouse Gas (GHG) inventory
i.e. Scope 1 (process emissions and other direct emissions)
and Scope 2 (purchased electricity) as defined under the
World Business Council for Sustainable Development
(WBCSD) and World Resource Institute (WRI) GHG Protocol.
ENERGY CONSUMPTION
(million GJ)
8.7
8.5
FY2021
FY2020
FY2019
62.59
FY2018
14.34
FY2017
9.07
Direct
Indirect
515
517
483.9
424.94
411.95
523.7
525.5
546.49
439.28
421.02
79
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report ENVIRONMENT CONTINUED...
Waste and tailings
management
Waste management in a safe and responsible manner is a
crucial priority for our businesses. The hazardous wastes
comprise used/spent oil, waste refractories, spent pot
lining and residual sludge from smelters. On the other
hand, high-volume and low-toxicity wastes constitute the
non-hazardous wastes. These are fly ash (from captive
and merchant power plants), red mud (aluminium refinery
waste), jarofix (from zinc smelting), slag, lime grit (process
residues from smelters and aluminium refineries) and
phosphogypsum (phosphoric acid plant).
Tailings dam management
Integral to mining operations, tailings dams (if breached)
can cause significant damage to the environment and to
the neighbouring communities. The Company oversees
18 active and five inactive, and one closed tailings
management facilities (TMFs). Our principal concern is to
ensure the safety of the people who live downstream from
our dams. All but one1 tailings facilities have undergone an
independent audit and assessment in the last 12 months by
Golder Associates.
In FY2021, we recycled 94% of the high-volume-low-effect
wastes such as fly ash, slag, and jarosite. For the 2nd year
in a row, we could reutilise more than 100% of the fly ash
generated in the year, by recycling legacy waste.
We have also introduced a tailings dam management
standard to ensure that our Group companies adhere to
standard practices while managing their dam structures.
HIGH-VOLUME-LOW-EFFECT WASTE
(million mt)
UN SDGs and target linkage
6%
25%
114%
Red Mud
Jarosite
0.13
2.27
0.15
0.6
1.15
1.01
Slag
Fly Ash
Recycled
Generated
Goal: SDG 12 – Responsible production
and consumption
Target 12.5 - Substantially reduce
waste generation through prevention,
reduction, recycling and reuse
15.32
13.9
110%
< BACK TO CONTENTS
Water
management
While access to a steady water supply is critical for
mining and smelting operations, host communities and
the natural ecosystem and biodiversity of the area also
rely on water. Hence, the responsible use of this shared
resource is a critical imperative for us and for all our
stakeholders.
Our Group water policy administered through our water
management standard is in place and our approach is
to keep it as a core factor while making decisions, either
for a new project or an existing one. Water-screening
assessment to identify sensitive water resources,
aquatic habitats and any known or suspected water
resource constraints in proximity to each operation, is a
must and has been conducted by all our businesses.
We have steadily increased our water recycling rate in
the last three years.
Performance
WATER CONSUMPTION & RECYCLING
(million m3)
FY2021
83.05
FY2020
72.36
FY2019
66.99
FY2018
71.70
FY2017
64.65
270.4
30.71%
251.68
28.75%
243.44
27.52%
241.66
29.67%
241.56
26.76%
UN SDGs and target linkage
Total water consumption
Water recycled/reused (% Water recycled)
Goal: SDG 6 – Clean water
and sanitation for all
Target: 6.4 – Increase
water use efficiency
and ensure sustainable
withdrawals
Goal: SDG 15 – Life on land
Target: 15.9 - Introduce
biodiversity management
and planning into
development processes
1 Our facility at Skorpion Zinc underwent an audit in 2016.
80
Reducing our impact on the environment
Raw water reservoir at Lanjigarh facility
81
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report ENVIRONMENT CONTINUED...
Air
emissions
The impact of emissions on employees, communities
and the natural surroundings are closely observed,
evaluated and documented for corrective actions and
future reference. We use best-in-class technologies to
reduce to the minimum any particulate release.
The release of Suspended Particulate Matter (SPM),
SOx and NOx are monitored as a part of our consistent
efforts to keep the ambient air quality safe. Lead
emissions in our zinc operations, fluoride emissions in
our copper and aluminium operations, and Polycyclic
Aromatic Hydrocarbons (PAHs) in our aluminium
operations are also checked regularly to adhere to our
Environmental Management Standard.
Performance
STACK EMISSIONS
FY2021
FY2020
FY2019
66,305
66,602
67,278
FY2018
56,749
FY2017
44,935
SOx
NOx
(in mt)
219,745
255,657
242,234
189,823
174,340
< BACK TO CONTENTS
CASE STUDY
Responsible tailings
utilisation: all round
benefits
One of the key aspects of mine
sustainability is its post-mining
restoration. Typically, to maintain
structural stability of the mines,
miners undertake the process
of backfilling material into
underground voids created by
their activity. Backfilling is usually
conducted using cementitious
material such as concrete.
However, this can prove to be a
costly affair, with larger negative
environmental footprint.
At Hindustan Zinc, Vedanta’s zinc
division, we took up an innovative
and contemporary approach
to backfilling. In exploring
economically viable mixtures to
execute backfilling, we found an
opportunity to use mine tailings
(leftover material after ore
separation). This played out to
be beneficial in more ways than
one, where we could utilise waste
material to fill the void, offsetting
the need for new disposal land for
tailings. It resulted in economic
benefits, reduction of cycle time,
generating employment and
above all, environmental utility
as industrial waste could find
alternative and sustainable use.
Infrastructure, technology
and process
We executed this by following
the paste back fill system, setting
up two paste fill plants each in
Sindesar Khurd (SK) and Rampura
Agucha (RA) mines and one in
the Zawar mine. In fact, HZL is
credited with the installation of
the first paste fill plant in India.
These plants help in thickening
the mill tailings, mixing with
Paste Fill Plant at Rajpura Dariba Complex
the binder to prepare the paste
for the underground distribution
system. This process avoids any air
emissions, and we use recycled water
for the activity. The plants in SK have
a combined capacity of 6 mtpa, RA at
5 mtpa and Zawar at 1 mtpa.
Way forward
Going forward, we intend to
utilise 55% of tailings and
maximise fly ash utilisation
within the next one year. Focus
will be on increased backfilling
and safety.
Employing the latest technology with
emergency preparedness plans and
digitisation, this initiative dovetails
into Vedanta’s policy of ‘Zero Harm,
Zero Waste, Zero Discharge’.
Key outcomes
Since deployment, we have achieved
up to 39% of tailings utilisation,
continual reduction of cement
utilisation in the mix and 14% and
37% reduction in specific water
consumption in the RA and SK mines,
respectively. The capital cost of the
plant deployment has been paid back
within three months across locations
and has resulted in continuous profit
contribution.
Since 2018, we
utilised 7.4 million
tonnes of tailings
in backfilling to
avoid land disposal
Reducing carbon footprint with tree plantation
82
83
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report ENVIRONMENT CONTINUED...
Waste to Wealth, the Vedanta-Runaya Partnership
< BACK TO CONTENTS
Runaya process
35%Aluminium recovery
from hot dross
5%Aluminium recovery
from cold dross
60%Depleted dross used to
make briquettes
100%Recycling
STAGE 1
+
STAGE 2
STAGE 3
+
=
OUTPUT
Hot dross
processing
Cold dross
processing
Steel slag
conditioner production
Briquettes used in
steel industry
Depleted dross is used to manufacture briquettes that are used in secondary refining of steel, with significant
reduction in power consumption and increased refractory life, thus improving sustainability. This circular,
end-to-end approach to manufacturing and waste management aligns with our philosophy of ‘zero waste, zero
discharge’, preventing landfills and ensuring better utilisation of waste material. Vedanta Jharsuguda is now a
zero hazardous waste smelter, and with BALCO also announcing a partnership with Runaya, Vedanta is well on
track to becoming the first zero hazardous waste company by FY2022.
C.N. Singh, CEO,
Vedanta Ltd., Jharsuguda
Abhijit Pati, CEO & Director,
BALCO
Annanya Agarwal,
CEO & Co-Founder, Runaya
Circularity in business is the need
of the hour, and I’m proud of
the ‘zero waste, zero discharge
smelter’ feat our Jharsuguda
team has achieved with Runaya’s
support. Furthermore, Runaya has
broken the mould in manufacturing
with a highly diverse workforce,
with nearly 50% women running
the facility.
Vedanta’s ethos of ‘Zero
Harm, Zero Waste and Zero
Discharge’ continues to guide
our environmental and social
performance. We at BALCO are
aligning our energies to stand tall
towards ecosystem restoration
and nurturing environment
conservation efforts across all our
areas of operations.
Runaya is firmly committed to
disrupting the linear economy
model currently existing in the
industry and ushering in a circular
economy model by deploying
cutting edge technology and
innovation in the resources sector
with focus on sustainability
solutions. We are extremely proud
to partner Vedanta Jharsuguda,
India’s largest aluminium smelter,
on their journey towards becoming
a zero hazardous waste smelter.
Cold dross processing unit at Runaya’s facility in Jharsuguda
The world produces ~65 million
tonnes of aluminium annually,
but nearly 1 million tonne of the
material is lost in the form of a
by-product, aluminium dross.
In India alone, about 60,000
tonnes of dross are produced
every year. A classified
hazardous waste, unscientific
disposal of dross can have
detrimental impacts on
people and the environment.
Currently, aluminium
manufacturers send the waste
to authorised recyclers who
process the waste as per the
CPCB guidelines, most of which
end up in landfills.
A key aspect of dross is that it
contains valuable material and
compounds such as aluminium,
aluminium nitrides and oxides,
spinel, dimagnesium silicate,
gupeiite, and sodium titanate.
However, traditional recyclers
were only able to recover
limited amount of material from
cold dross, with about 10%
recovery rate being the industry
benchmark.
At Vedanta’s facility in
Jharsuguda, where India’s largest
aluminium smelter is housed,
we have turned this around in
partnership with Runaya, who are
licensed to use Taha’s patented
dross technology. This ensures a
significantly higher recovery rate,
while also creating energy savings
to the tune of 800,000 GJ and
reducing CO2 emissions in excess
of 260,000 tonnes, annually.
The advanced technological
process presents four-fold
benefits in the form of:
1. Enhanced recovery of
aluminium from the dross,
to the extent of 90% of the
available metal
2. Utilizing existing energy in
freshly skimmed dross leads
to significant savings in
energy consumption
3. Environmental and people
safety due to avoidance of
direct disposal of dross in
landfills
4. Depleted dross is used to
manufacture value added
products for the steel
industry, which reduces
carbon footprint of steel
manufacturing
84
85
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report SOCIAL
Together we help
uplift communities
We are the primary economic driver for the communities, where we operate.
We shoulder this responsibility seriously and endeavour to fulfil our role in a
manner that upholds the dignity of all our stakeholders and allows us to live up
to our deeply cherished values.
< BACK TO CONTENTS
The Vedanta Sustainability
Framework and its associated
standards and policies guide
our work on social performance.
In areas with indigenous
populations, we are committed
to following the principles of
Free, Prior, Informed Consent
(FPIC). With its genesis in the
UN Declaration of Rights of
Indigenous Peoples, it has been
adopted as a best practice by the
IFC and ICMM.
Our CSR Council, led by a senior
business leader, and including
CSR Heads and CSR Executives
from all business units, meets
every month and reviews the
performance, spends and
outcome of CSR programmes
across units. Governed by
our in-house CSR Policy and
Sustainability Framework,
the Council is responsible for
governance, synergy and
cross-learning across the
Group’s CSR efforts.
The Board CSR Committee
comprising senior Independent
Directors, apart from providing
strategic direction for CSR
activities, also approves its plans
and budgets, and reviews the
progress of the initiatives.
Through proactive
and targeted
initiatives, we are
progressing towards
our objective of
becoming a developer
of choice in our
areas of operation.
Following the success of the
initiative, we are engaging the
third-party consultants again to
reinstate the project through the
means of pilot to be conducted at
two BUs – Lanjigarh and HZL. With
the initial formalities complete
along with senior management
approvals, FY2022 will see these
two BUs undertake pilot projects
including social risk assessment
and grievance mechanism tracking,
among others.
Through such proactive and
targeted initiatives, we are
progressing towards our objective
of becoming a developer of choice
in our areas of operation.
SOCIAL PERFORMANCE & SOCIAL
LICENCE TO OPERATE
Securing and retaining one’s social
licence to operate is an outcome
resulting from a company’s ability to
garner the trust of the communities
where it operates. Social
performance frameworks are a good
mechanism to measure, manage, and
monitor this aspect of the business.
With a view to evaluate Vedanta’s
social performance and impact, our
senior leadership commissioned a
study conducted by independent,
globally renowned experts. This
study spanned four sites, post which
the reports were submitted to the
Vedanta ExCo for its consideration.
The reports made a clear case for
a reboot of our social performance
practices.
Based on the findings of the report,
a Group-wide self-assessment
drive with all units was conducted
in FY2021. These led to the
formation of Social Performance
Steering Committees, with cross
functional participation. The
primary intent was to explain to
our internal stakeholders that
social performance and licence to
operate go beyond the ambit of an
organisation’s CSR activities and are
closely related to its operations, HR
practices and other activities.
This awareness initiative resulted in
the formation of Social Performance
Management Committees (SPMC)
at each unit, development of
standard and guidance note and its
implementation through VSAP.
86
87
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
SOCIAL CONTINUED...
COMMUNITY EMPOWERMENT INITIATIVES
Community provides us the critical support to grow sustainably with all stakeholders. We have evolved one of the
most elaborate community empowerment initiatives in our industry, and we regularly garner inputs and insights from
stakeholders to improve our programmes.
In FY2021, ~`331.12 crore was spent to help communities elevate their quality of life through various interventions. An
overview of these programmes is provided below.
Children’s well-being and education
Upskilling youth
Key features
Healthcare
Key features
90+Initiatives across our
Group companies
~39 million
Children benefit from
these programmes
60+Initiatives across our
Group companies
~2.4 million
People benefit from
these programmes
Types of interventions:
Anganwadis and child-care centres; public
school infrastructure support (including
sanitation); scholarships and teacher
training; digital classrooms and computer
aided learning centres; libraries; Vedanta-
run schools; exam preparation counselling;
career counselling science fairs
Types of interventions:
Support to primary health centres;
HIV/AIDS awareness programmes;
health camps; mobile health vans;
specialist doctor support; nutrition
programmes; Vedanta-run hospitals;
health awareness drives
Community infrastructure
Women’s empowerment
Agriculture & animal husbandry
15+Initiatives across our
Group companies
3,300+
SHGs formed
300+
Micro-enterprises formed
32,000+
Women benefit from
these programmes
35+Initiatives across our
Group companies
250,000+
People benefit from these
programmes
Types of interventions:
Self Help Groups; Women’s
co-operatives; Micro-enterprises
Types of interventions:
Provision of drinking water; construction
of toilets; RO plant set up; digging of
borewells; handpump repair/installation;
sanitation drives
Drinking water & sanitation
20Initiatives across our
Group companies
2,000+
Youth trained
40+Initiatives across our
Group companies
360,000+
People and
3,000+
Families benefit from
these programmes
Types of interventions:
Sewing centres; vocational training
centres; technical & computer literacy
programmes; traditional crafts and
painting training
Types of interventions:
Tube-wells/open-wells/borewells; check-
dams; roads; parks; public education
infrastructure; community centres; health
centres; village walls and gates; renovation
of sports complexes; temples, irrigation
channels; drains; bus stands; street lights;
ponds; public CCTV installations
50+Initiatives across our
Group companies
62,000+
Farmers benefited
Types of interventions:
Climate change adaptation; Wadi-based
agriculture; water-shed rejuvenation;
agriculture-based natural resource
management; dairy and livestock
development; farmer training; SHGs;
co-operatives; veterinary care; irrigation
channel maintenance
30+Initiatives across our
Group companies
43,000+
Sportspersons and culture
enthusiasts benefited
Types of interventions:
Rural sports; sponsorship for:
para-athletes; marathons; sports
tournaments; music festivals; football
and archery training academies
Sports & culture
Environmental restoration & protection
96,000+
Saplings planted and are
under maintenance
Types of interventions:
Sapling plantation and greenbelt
management; water conservation
structures; pond desilting
88
89
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report SOCIAL CONTINUED...
COMMUNITY OUTREACH DURING COVID-19
In addition to the execution of our long-term social development agenda, we were also among the foremost
Indian companies which stood in solidarity with the larger community during these challenging times. We have
pledged `150 crore to help the country in its fight against the second wave of COVID-19 and we are undertaking
several initiatives, as summarised below.
Health and medical support
Set up 10 field hospitals with
1,000 critical care beds for COVID
patients, across Rajasthan,
Delhi/NCR, Chattisgarh, Odisha,
Karnataka, Jharkhand and Tamil
Nadu
Vedanta’s business units have
been supporting 1,000 beds
for COVID-19 patients across
business locations
Cairn Oil & Gas has set up a
100-bed COVID Care Centre in
Oxygen supply
HZL is supplying 8 tonnes of oxygen
to local hospitals, while Sesa Goa is
providing 3 tonnes of Liquid Medical
Oxygen on a daily basis. ESL has
also committed to supplying up to
10 tonnes of oxygen daily
HZL runs an oxygen bottling plant
with capacity of up to 500 cylinders
per day, and is setting up a 1,200
cylinders per day bottling plant
Barmer along with the district
administration
Vedanta Aluminium, Jharsuguda &
BALCO, Korba have set up COVID
Care Centres with a capacity of
100 beds each
Vedanta Sesa Goa has added 100
critical care beds with oxygen and
ventilator support at Goa Medical
College
In order to facilitate on-time
oxygen transportation to
hospitals in Rajasthan, Cairn Oil &
Gas has provided 11 tankers
Sterlite Copper is initiating the
operation of its oxygen plant
at Tuticorin, with a capacity to
produce 1,000 tonnes of oxygen
per day
Providing access to
quality healthcare
Oxygen bottling plant at Dariba
UN SDGs and target linkage
Goal: SDG 2 – Zero Hunger
Target: 2.1 - End hunger
and ensure access to safe,
nutritious, and sufficient
food, all year round
Target: 2.2 - End all forms
of malnutrition
Goal: SDG 4 - Ensure inclusive
and equitable quality education
and promote lifelong learning
opportunities for all
Target: 4.4 - Increase
the number of youth and
adults who have relevant
skills, including technical
and vocational skills, for
employment, decent jobs and
entrepreneurship
Goal: SDG 6 – Clean water &
sanitation
Target: 6.6 - Protect and
restore water-related eco-
systems
Goal: SDG 8 – Economic
Growth & Decent work
for all
Target: 8.6 - Reduce youth
unemployment, illiteracy,
unproductivity
< BACK TO CONTENTS
CASE STUDY
Making inclusive
progress an everyday
reality
Caste-based discrimination
across many parts of India
continues to be a deep-rooted
social taboo. Take the example
of 50-year-old Dinesh Kumar,
a resident of Dangiyo ki Dhani,
Dewra, Chitalwana, Jalore
district. A father of three children,
Dinesh has always believed in
casteism, until he became a part
of Cairn’s Dairy Development &
Animal Husbandry initiative.
The DD&AH initiative provides
the community with a platform
to enhance their income through
improved ways of livestock
management. The programme
includes doorstep delivery
of medical care for livestock,
regular awareness and capacity-
building sessions on cattle
upkeep, skill development on
allied activities, linkage with
CASE STUDY
Bringing smile
to the last mile
We, at Cairn, think that small
outreach initiatives for the
community goes a long way
towards empowerment at the
grassroots. This conviction has
inspired us to set up community
helpdesks across six villages of
our operations across Gujarat.
Our role is to conduct a detailed
mapping of villages to identify
areas where intervention is
required and act as a bridge
to connect the last-mile
citizens like Sadhu Manhulabe
Farshurambhai with government
schemes and support measures.
Farshurambhai, 65, of Hansalpur
village, was finding it difficult
to make ends meet after
Inclusive employment opportunities
husbandry, and other livelihood
allied activities now helps his
family earn a decent income. His
wife too is a part of the women’s
group, doing tailoring activities
for additional income.
Dinesh has a progressive
worldview today, and his children
are receiving decent education.
He has many plans for the future,
and he knows for sure that Cairn
will always support his ambition
in letter and spirit.
government initiatives and so on.
Dinesh was desperate to increase
his family income, but he could never
convince himself to be a part of the
project, because the village dairy
committee’s secretary belonged to a
scheduled caste.
Cairn, in partnership with SURE
Sansthan (non-profit partner of the
programme), helped him change his
views on casteism. Today, Dinesh is
an active member of the committee,
and has expanded his business by
being a regular supplier of cattle milk
to the dairy. Besides, his knowledge
on green fodder production, animal
Empowering communities for a new India
her husband, who was the only
breadwinner of the family, died.
Her failing health made matters
worse for her. The Cairn HelpDesk
team provided her with information
regarding the benefits of multiple
government schemes and how to
take advantage of those. Today
Manhulaben is a beneficiary of
‘Vidhva Sahay Yojana’ which
provides direct cash transfers to
the underprivileged.
The financial assistance from the
government, she says, is a security
blanket to fall back on in times
of stress. We have so far helped
1,500+ community members
across our intervention areas, and
this is just the beginning.
90
91
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report SAFETY
Ensuring the safety of
our workforce
During FY2021, we lost eight colleagues to work-related accidents. It is a stark reminder for us to strengthen and
improve our safety management systems, as one life lost is one too many.
This was a matter of grave concern because within the same period, we had invested heavily in several systems and
standards, which were introduced to ensure a safe, injury-free workplace. To understand the rationale behind
this anomaly, the Group ExCo along with our Group HSE teams went on to analyse the situation and developed a
way forward.
As a part of our continuing safety initiatives, the following three areas deserve mention:
Proactive leadership
Continuous interaction between
leaders and support personnel on
safety issues, leading to hands-on
safety interventions.
Delegation of safety-
critical tasks
Safety-critical responsibilities are
identified and delegated with proper
monitoring mechanism in place.
Safety engagement
with partners
Long-standing business partners
are properly informed about safety
initiatives undertaken by Vedanta,
and project-specific business
partners are managed through
efficient supervisors.
< BACK TO CONTENTS
Setting high safety standards
Our safety performance
LTIFR
FY2021
FY2020
FY2019
FY2018
FY2017
(per million person-hours)
FATALITIES
0.55
FY 2021
0.66
FY 2020
0.46
0.35
0.40
FY 2019
FY 2018
FY 2017
5
8
9
7
7
UN SDGs and target linkage
Goal: SDG 8 – Economic growth &
decent work for all
Target: 8.8 - Protect labor rights and
provide safe work conditions for all
92
93
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report PEOPLE AND CULTURE
An enriching culture
of caring and sharing
Giving back to the community, society and country in various ways is part of Vedanta’s larger
purpose. We are committed to working for the greater good, towards national prosperity and
for sustainable growth. During the pandemic Vedanta was among the few companies who rose
to the occasion and supported the nation through various initiatives such as distributing food
packets for daily wage earners, manufacturing of masks and PPEs, food for animals, and so on.
Ensuring health, safety, environment
and sustainability continue to be
our core focus area. To combat
the pandemic-induced health and
security concerns of our people, we
created a central COVID taskforce
with a mix of passionate young
leaders and experienced senior
leaders. The taskforce is focused
on implementing strong control
measures across the Group, which
includes the launching of Apollo 24*7
healthcare helpline, digital portal
for tracking the cases across the
Group, wellness webinars and regular
communication on precautions and
preventive measures with all our
people through the Vedanta Cares
initiative.
We also introduced the Vedanta
Term Life Insurance Policy
(providing financial protection
equivalent to five times of annual
salary) with world-wide coverage of
all our executives across the Group.
Amid the pandemic, this was the
most important initiative launched
for our employees. This benefit is
over and above the Mediclaim and
Group Personal Accident Insurance
Policies currently being provided
by the Company to support the
employees in emergencies.
Our employees also receive
consistent recognition from
our Management and Board for
their extra mile efforts. These
include the Chairman Individual
Awards, Chairman Awards for
COVID-19 efforts, Chairman Award
for Business Partner and Best
Performing ManCom and Chairman
Discretionary Award.
94
STREAMLINED MANAGEMENT
Management Committee:
Vedanta introduced the concept
of Management Committee
(ManCom) for the organisation’s
apex leadership. Our businesses
are now being run by a Group of
6-8 people of the Management
Committee comprising the CEO,
CFO, CHRO, CCO, CMO and
other key leaders. Our ManComs
work as a cohesive team and are
the top decision-making body
for the respective businesses,
functions, and the Group, while
ExCos (Executive Committee)
serve as a review body. Currently,
we have one Group ManCom which
is the central decision-making
body with eight members and ten
Business ManComs. The SBUs are
still managed by their respective
ExCos. The same concept has been
extended to functions as well with
13 Functional ManComs in place and
each function is divided into verticals
with a vertical head identified to
ensure accountability and delivery.
Integrated Commercial and
Marketing Organisation:
At Vedanta, we continuously assess
our organisational structure to
ensure right Management in Place
(MIP). We redesigned the way
we look at our commercial and
marketing functions and created
an Integrated Commercial and
Marketing Organisation under
the leadership of the Group Chief
Commercial Officer and anchored by
the Managing Director Commercial &
CEO Aluminium & Power.
We embarked on a series of
Commercial & Marketing Workshops
to identify 100+ leaders in the largest
ever talent identification exercise
through a series of structured
Vice Chairman’s Internal Growth
Workshops. The new team will work
with a clear objective of enhanced
margin protection, build category
expertise, benchmarking and data-
driven decision-making, backed by
technology and digitisation. The
focus will be on buying and selling
within the Indian subcontinent to
foster national growth.
Employees at Operational site
< BACK TO CONTENTS
Project organisation design:
We have a large number of high-
impact brownfield projects that
are being implemented across the
Group to significantly drive volume,
unlock value and accelerate growth.
This is also part of our endeavour to
help our nation revive the economy
and infrastructure development,
capex spending and foreign direct
investment (FDI). To drive this
transformational agenda, we have
embarked on a series of Project
Leadership Workshops to identify
the next set of project leaders.
These workshops have helped us
identify 16 heads of various key
projects across the Group, who
have taken up enhanced roles to
drive our growth vision.
DIVERSITY AND INCLUSION GO
HAND IN HAND
Diversity is a business imperative,
as much as it is about fairness and
the right thing to do. The Group
benefits significantly from the skills,
experience, and perspectives of
the wide range of people who work
with us. Our objective is to achieve
gender parity across all levels,
starting from our Board to ManComs
/ ExCos and all decision-making
bodies. We constantly review our
organisation design and talent mix
to ensure a healthy representation
of women at all levels in the
organisation.
CASE STUDY
Empowering women for an empowered tomorrow
in future, spanning operational and
enabling roles at Vedanta’s business
units in India and the overseas.
The entire programme is likely to
be completed between six and 18
months, as the broader objective is to
elevate and retain talent.
Our journey commenced with 55
women leaders, out of 1,000 women
employees in various business units
and functions across 10 businesses
and operations. This includes an
interesting mix of women leaders
from enabling functions such as
Commercial, Marketing, Finance, HR,
IT, PR/CSR, Legal & Strategy and
Operations, such as HSE, AO,
Security, and Core Operations.
The eligibility criteria comprised the
following:
a)
b)
c)
d)
Performance and potential
Educational background
Projects handled
Passion for technology
Following their selection, the Vice
Chairman had a detailed interaction
with these aspiring leaders. These
women are being trained to take on
higher CXO roles as part of Top 200
leaders in the Group. The idea is to
ensure that they represent a part of
the decision-making bodies of the
Vedanta Group, namely ManCom
and ExCo.
A minimum of five women
will be given higher roles and
responsibilities on a quarterly basis.
This will ensure higher visibility,
exposure and fast-track career
progression through their
enhanced and elevated roles.
Anchoring the programme are
senior leaders of the Group and
each anchor has been assigned five
to six women leaders as mentees.
We will continue to implement
more such programmes to
encourage women to demonstrate
their grit and talent and take on
larger responsibilities.
95
At Vedanta, we have put in place
a comprehensive, time-bound
process to develop a robust
pipeline of women leaders across
the Group. The benchmark HR
programme (V-lead) underlines
the Group’s strong commitment
to diversity and inclusion.
As part of the initiative, a Group
of promising young women will
be identified, nurtured, and
promoted to adopt greater
responsibilities in CXO positions
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report PEOPLE AND CULTURE CONTINUED...
Leaders in the making
TRANSFORMATIONAL INITIATIVES
Vice-Chairman’s SBU engagement
workshops:
The key idea behind this
transformational initiative was to
connect with SBU Heads / ExCos
to engage, energise and generate
ideas / suggestions around key
themes such as Management in
Place and Business Vision, Volume
& Cost, HSE, CSR and Community
Relations, People Development,
Technology & Digitalisation,
Innovation & Benchmarking, Quality,
Security & Housekeeping etc.
Through this structured initiative,
we have covered 16 SBUs and have
engaged with 1,200+ executives. The
businesses have acknowledged that
the Vice Chairman’s Engagement
Workshop helped them in: a) moving
in the right direction; (b) each SBU
has already started working on the
key action points which emerged
from the engagement; (c) since the
workshops happened during the
current COVID times, it helped build
employees morale and performance
focus; (d) engagement with
business partners helped in quality
assessment.
Leadership succession planning:
We concluded the largest ever
exercise of Leadership Succession
Planning. The initiative aims to
create a three-level succession slate
for the COOs for key businesses
in the Group. The objective was
to identify 10 COOs and 30 three
level successors for each COO
through internal job posting (IJP) and
handpicking high-quality leaders.
This is a continuous process, as we
continue to identify successors for
other CXO positions such as deputy
for CHRO and CFO positions for each
business.
360-degree feedback mechanism:
This initiative was launched to get
a comprehensive assessment of
the organisation’s key leaders. It
will help the leaders in identifying
strengths and improvement areas
for effective leadership and address
the improvement areas through a
comprehensive developmental plan.
The key leaders from Group ManCom
to ManCom and ExCo members of
each business will undergo the same
leadership development journey.
ONBOARDING TALENT
As part of our overarching initiative
to onboard talent through
campus hiring from esteemed
institutions, we inducted 1,000+
young professionals in India with
focus on diversity. We have put
special focus to induct talent
from the North-East, J&K region
and minority communities. As
a proactive measure, we have
introduced premium salary for rank
holders in few categories, and they
will be offered front-line decision-
making roles. We are also inducting
specialised talent from new-age
programmes such as digital, data
science & analytics, quality, R&D,
sustainability, forensics, and so on.
< BACK TO CONTENTS
We are promoting
campus hiring with
focus on gender
diversity, upliftment of
minority communities
and adequate
representation
of all regions and
demographics in India.
Vedanta Leadership Development
Programme:
Continuing our practice of hiring
young talent and developing
them to take up higher roles and
responsibilities in the organisation,
we started the Vedanta Leadership
Development Programme (VLDP)
for hiring from top IITs and IIMs. Over
the preceding four years, we have
hired 100+ management trainees
from top three IIMs and XLRI and
graduate engineer trainees from top
six IITs.
Our high-potential talent is provided
with high-impact frontline roles.
At the end of these workshops, we
rotated them into elevated cross-
functional roles to provide them
with maximum exposure and train
them to take up CXO roles at our
businesses within the next six-eight
years.
LEADERSHIP DEVELOPMENT
As part of Vedanta’s DNA, we focus
on continuous identification and
talent development. Over 1,000
leaders were identified through
workshops, V-Reach, IJP and Act-Up
programmes.
FACOR Leadership ACT UP:
FACOR (Ferro Alloys Corporation
Limited) which was recently acquired,
comprises of chrome mines along
with a fully integrated processing and
captive power plant. FACOR is one of
the largest producers of ferro alloys,
an essential ingredient to produce
stainless steel and specialty steel.
FACOR has tremendous potential
to generate significant value in the
growing market. A 2-day ACT UP
(Accelerated Competency Tracking
and Up-gradation Programme)
Workshop was organised with the
objective to identify and elevate
the internal talent at FACOR to
leadership role in order to strengthen
FACOR leadership backbone and
impart Vedanta’s culture and
values for alignment. A structured
process was designed to shortlist
participants from a pool of 600+
employees for the 2-day Workshop
which comprised Group activities,
presentations, and case studies.
50+ new leaders were identified
and elevated to significantly higher
roles across the three verticals
of Captive Power Plant (CPP),
FACOR Power Limited (FPL) and
Mines. Cross functional teams
were formed to foster learning
across verticals and solve complex
problems. A new CSR vertical was
established to stand firm on our
values of giving back to the society.
V-Reach: Graduate Development
Programme:
We have a strong and unwavering
focus on identifying and developing
talent from within. We have a 5,000+
strong talent pool who joined
us as graduates, who represent
the backbone of our businesses.
V-Reach was launched in three
phases to identify top 500 talent
from the graduate talent pool and
provide them elevated roles and
opportunities for fast-track career
growth within the Group. This
identified talent will progressively
take up enhanced roles for adding
fresh perspective and value to
various businesses. We are also
developing a digital solution to
continuously track the progress
of this talent through technology
implementation as we continue to
identify additional set of talent under
this category.
Digital Organisation:
Vedanta has embarked on an
aspirational digital transformation
journey and our vision is to become
a technology-driven company.
With this vision, Digital Act-up was
conducted to identify young high
potential leaders across various
units and functions through the
structured ACT UP Workshop model
and give them significantly elevated
roles and responsibilities and thereby
induct the required skillset to provide
a digital steer to our organisation.
V-Tech 1.0:
To identify talented engineers and
elevate them to significantly higher
roles, V Tech 1.0 was launched. Over
550 employees spanning the Group
with focus on ensuring diversity
will undergo online psychometric
assessment to result in shortlisting
of top 300 basis the assessment and
360 DF. These leaders will drive
high-impact projects and
innovations, take up leadership roles
across the organisation, leverage
their potential and become brand
ambassadors of Vedanta.
Young Leaders’ Taskforce:
At Vedanta, young leaders are
given a wide plethora of growth
opportunities. We have created a
team of livewire professionals hailing
from diverse backgrounds with focus
on innovation. Their innovative
ideas help us steadily grow volumes,
optimise costs and identify other
key drivers to make the organisation
more agile to protect our margins,
despite market variations.
UN SDGs and target linkage
Goal: SDG 5 – Achieve gender
equality and empower all women
and girls
Target: 5.5 - Ensure full and equal
participation of women in all
decision-making in the political,
economic, and public life.
Target 5.9- Adopt and enforce
policies and legislation on gender
equality
96
97
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report GOVERNANCE
Good governance creates
value for everyone
Good corporate governance protects shareholder value while overseeing sustainable
progress for everyone. At Vedanta, we undertake our business with a strict adherence
to ethical management and responsible operations, and constantly strive to go beyond
compliance to create positive impact.
Our governance philosophy stems from our values of Trust, Entrepreneurship,
Innovation, Excellence, Integrity, Respect and Care.
COMPOSITION OF THE BOARD
At Vedanta, we have an illustrious Board, comprising members from various professional backgrounds. With 50%
Independent Directors and 25% women Directors, our Board composition is consciously prudent and enables the
protection of all stakeholder interests.
As on 6 May 2021, the Board comprises of eight members as listed below.
Name
Designation
Mr. Anil Agarwal
Mr. Navin Agarwal
Ms. Padmini Somani(1)
Mr. Dindayal Jalan(2)
Mr. Upendra Kumar Sinha
Mr. Mahendra Kumar Sharma
Mr. Sunil Duggal(3)
Ms. Priya Agarwal
Non-Executive Chairman
Executive Vice Chairman
Non-Executive Independent Director
Non-Executive Independent Director
Non-Executive Independent Director
Non-Executive Independent Director
Whole-Time Director & Chief Executive Officer
Non-Executive Director
Gender
Male
Male
Female
Male
Male
Male
Male
Female
Age
(as on
March 31, 2021)
68
60
45
64
69
73
58
31
(1) Ms. Padmini Somani has been appointed as an Additional Director designated as the Non-Executive Independent Director of the
Company effective from 5 February 2021.
(2) Mr. Dindayal Jalan has been appointed as an Additional Director designated as the Non-Executive Independent Director of the Company
effective from 1 April 2021.
(3) Mr. Sunil Duggal has been appointed as an Additional Director designated as the Whole-Time Director & Chief Executive Officer of the
Company effective from 25 April 2021.
(4) Mr. K Venkataramanan ceased to be the Non-Executive Independent Director of the Company effective from close of business hours on
31 March 2021 pursuant to completion of term.
(5) Mr. G.R. Arun resigned from the position of Whole-Time Director & Chief Financial Officer of the Company and was relieved effective from
close of business hours on 24 April, 2021.
Number of Directors
50%
Independent
Directors on Board
0
Less than
30 years
2
Between
30-50 years
6 Above
50 years
6 Male
2
Female
< BACK TO CONTENTS
Our Board provides strategic perspective and steers the business in line with the commitments made to
various stakeholders and sustainable growth. The Board is supported by
Established
committees
Sustainable
development team
Vedanta Sustainability
Framework and VSAP
Code of Business
Conduct and Ethics
and varied other
policies & practices
adopted by the Group
EXECUTIVE COMMITTEE
Mr. Sunil Duggal
Chaired by Chief Executive Officer
The Committee meets monthly and is responsible
for implementing strategic plans formulated by the
Board, allocating resources in line with delegated
authorities and monitoring the operational and
financial performance of the Group.
GROUP MANAGEMENT COMMITTEE
Effective 1 April 2020, a Group Management
Committee has been formed comprising Chief
Financial Officer, Chief Executive Officer, Chief Human
Resource Officer Head and Chief Commercial Officer.
The Committee is collectively responsible for all key
decisions, taken under the guidance of the Chairman
and Board. This Committee drives all important
initiatives and is empowered by the Board.
By overseeing the conduct of business with strict adherence to ethics and responsibility, the structure
enhances the prosperity and long-term viability of the Company.
SHAREHOLDERS
Board of
Directors
Audit & Risk
Management
Committee
Stakeholders
Relationship
Committee
Corporate Social
Responsibility
Committee
Nomination &
Remuneration
Committee
CEO
Management
& Executive
Committee
Sustainability
Committee
Share & Debenture
Transfer
Committee
Committee of
Directors
Notes -
* The Finance Standing Committee of Directors has been consolidated with the Committee of Directors effective from 16 May 2020.
** The Risk Management Committee has been consolidated with the Audit Committee and renamed as the Audit & Risk Management
Committee effective from 6 June 2020.
98
99
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report BUSINESS RESPONSIBILITY REPORT MAPPING
Mapping of Integrated Report for FY2021 (IR) with Securities and Exchange Board of India
Business Responsibility Report (SEBI BRR) framework.
< BACK TO CONTENTS
BRR Section
BRR Framework
Section/Page Number in Integrated Report
2. Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N)
Section A: General Disclosures
Our Approach to Reporting
General Information about the company
Financial Year Reported
Section B: Financial Details of the Company
Paid up Capital (INR)
Total Turnover (INR)
Total Profit After Taxes (INR)
Total spending on corporate social responsibility
(CSR) (INR)
List of activities in which expenditure in B4 above
has been incurred.
Section C: Other Details
Does the Company have any Subsidiary Company /
Companies?
Do the Subsidiary Company / Companies
participate in the BR Initiatives of the parent
company? If yes, then indicate the number of such
subsidiary company(s)
Do any other entity/entities (e.g. suppliers,
distributors, etc.) that the Company does business
with participate in the BR initiatives of the
Company? If yes, then indicate the percentage of
such entity/entities. [Less than 30%, 30-60%,
More than 60%]
Section D: BR Information
Details of Director/Directors responsible
for BR
A1, A2, A3, A4, A5,
A7, A8, A9, A10
Page 2
The information can be assessed in the
Annual Return, uploaded in the website
of the company
https://www.vedantalimited.com/
Pages/AnnualReports.aspx
A6
B1
B2
B3
B4
B5
C1
C2
C3
2020-21
Page 182
Page 277
Page 277
Page 198
Community Development Activities
Page 199-209
Yes
Yes. Vedanta Ltd. has 8 subsidiaries
HZL, BALCO, MEL, Cairn India, Western
clusters, Zinc International and CMT
(Copper Mines of Tasmania)
Our suppliers are not directly involved
with the ‘Responsible Business’
initiatives. However, our contracts
address areas like HSE, Ethics, and
Human Rights that our suppliers are
obliged to adhere to strictly.
D1
Page 197
S. No. Questions
Do you have a policy/policies for:
1
2
3
4
5
6
7
8
9
Has the policy been formulated in consultation with the
relevant stakeholders?
Does the policy conform to any national/ international
standards? If yes, specify. (50 words)
Has the policy been approved by the Board? Has it
been signed by MD/Owner/CEO/ Appropriate Board
Director?
Does the Company have a specified committee of the
Board/ Director/Official to oversee the implementation
of the policy?
Indicate the link for the policy to be viewed online?
Has the policy been formally communicated to all
relevant internal and external stakeholders?
Does the Company have in-house structure to
implement the policy/policies?
Does the Company have a grievance redressal
mechanism related to the policy/ policies to address
stakeholders’ grievances related to the policy/ policies?
Has the Company carried out independent audit/
evaluation of the working of this policy by an internal or
external agency?
P1
Y
Y
Y
Y
Y
P2
N
NA
NA
NA
P3 P4 P5 P6 P7
P8 P9
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
NA
Y
Y
Y
Y
Y
Y
Y
https://www.vedantalimited.com/Pages/
CorporateGovernance.aspx?type=inv
Y
Y
Y
NA
NA
NA
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Each year, the Company undertakes an audit
exercise, conducted by an external agency to
evaluate the workings of these policies. This audit
is known as the Vedanta Sustainability Assurance
Protocol (VSAP) audit. The VSAP audit is conducted
across all of our significant sites.
NA = Not Applicable
BRR Section
3. Governance related to BR
BRR
Framework
Section/Page Number in Integrated Report
Indicate the frequency with which the Board of
Directors, Committee of the Board or CEO to assess
the BR performance of the Company. Within 3
months, 3-6 months, Annually, More than 1 year
Does the Company publish a BR or a Sustainability
Report? What is the hyperlink for viewing this
report? How frequently it is published?
D3
D3
Sustainability and ESG
Page 77, 98-99
Sustainability and BRR performance are detailed
in the Vedanta Ltd. Annual Report. We also
publish an annual Sustainability Report based on
GRI Standards. Our Sustainability Reports can be
found at: http://www.vedantalimited.com.
100
101
Employees at Balco
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...
< BACK TO CONTENTS
BRR Section
BRR
Framework
Section/Page Number in Integrated Report
3. Does the company have procedures in place for
P2-3
sustainable sourcing (including transportation)? If
yes, what percentage of your inputs was sourced
sustainably? Also, provide details thereof in 50
words or so.
4. Has the company taken any steps to procure
P2-4
goods and services from local & small producers,
including communities surrounding their place
of work? If yes, what steps have been taken to
improve their capacity and capability of local and
small vendors?
The Company includes sustainable sourcing
practices by intrinsically building the clauses in
the contract.
In view of retaining quality, the Company sources
its major inputs from OEMs and large national
and international manufacturers. Goods and
services procured by businesses locally are of
consumable nature where feasible.
5. Does the company have a mechanism to
P2-5
Yes
recycle products and waste? If yes, what is the
percentage of recycling of products and waste
(separately as <5%, 5-10%, >10%). Also, provide
details thereof, in about 50 words or so.
Find the waste recycling numbers:
Fly ash – 110%
Jarosite – 25%
Page 78-85
Principle 3: Employee Well-being
1. Please indicate the Total number of employees
2. Please indicate the total number of employees
hired on temporary/ contractual/casual basis
P3-1
P3-2
17047, full time employees
52,747 as on 31 March. (This doesn’t include 243
Retainers/Fixed term Contract employees)
Cell House at Dariba Smelting Complex
BRR Section
Section E – Principle-wise Disclosures
BRR
Framework
Section/Page Number in Integrated Report
Principle 1 - Conduct, Governance, Ethics, Transparency and Accountability
3. Please indicate the number of permanent women
P3-3
1911 Full-time female employees
1. Does the policy relating to ethics, bribery and
corruption cover only the company? Yes/ No.
Does it extend to the Group/Joint Ventures/
Suppliers/Contractors/NGOs /Others?
2. How many stakeholder complaints have been
received in the past financial year and what
percent was satisfactorily resolved by the
management? If so, provide details thereof, in
about 50 words or so
P1-1
P2-1
No. The Business Code of Conduct and Ethics
applies to all Directors, officers and employees
of the Company and its subsidiaries
Page 182
Standalone numbers: Open complaints
at 1 April 2021: 04
Number of whistle-blower cases received
in FY2021: 102
Number of whistle-blower cases upheld
and found correct in FY2021: 32
Number of whistle-blower cases closed
in FY2021:100
Principle 2 - Safety and Optimal Resource Utilisation across Product Lifecycle
1. List up to 3 of your products or services whose
P2-1
design has incorporated social or environmental
concerns, risks and/or opportunities.
2. For each such product, provide the following
P2-2
details in respect of resource use (energy, water,
raw material etc.) per unit of product(optional):
Cairn case study – Bringing smile to the last
mile; Page 91
HZL paste fill plant case study; Page 83
1. Cairn has set up “Community helpdesks”
across six villages to provide voice to the
underprivileged. This is an awareness cum
educational initiative. This project has helped
more than 1,500 lives.
2. HZL has set up paste fill plants across its
mining operations. It is the first such plant
in India. The implantation leads to reduced
environmental foot print by utilising tailings
and fly ash and leading to a reduction in use of
cement. 39% tailing utilisation and 244 kg m3
reduction in cement use.
employees
4. Please indicate the Number of permanent
P3-4
Not tracked
employees with disabilities
5. Do you have an employee association that is
P3-5
recognised by management?
6. What percentage of your permanent employees
P3-6
are members of this recognised employee
association?
Yes, we have recognized employee association at
IOB, HZL & BALCO
We have recognised employee associations at
IOB, HZL & BALCO. Coverage of permanent
employees is as below:
7. Please indicate the Number of complaints relating
to child labour, forced labour, involuntary labour,
sexual harassment in the last financial year and
pending, as on the end of the financial year.
P3-7
73.8% at IOB
31% at HZL
51% at BALCO
Child labour/ forced labour/involuntary labour –
Nil
Sexual harassment cases - 8*; All cases are closed
*Represents consolidated number
8. What number of your under mentioned
P3-8
employees were given safety & skill up-gradation
training in the last year?
The total safety & skills-up gradation training
given to employees, contract workers and
third-party visitors is given as below:
Employees: 70,460 hours
Contract employees - 9,45,953 hours
Third party: 10,614 hours
102
103
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...
< BACK TO CONTENTS
BRR Section
BRR
Framework
Section/Page Number in Integrated Report
BRR Section
BRR
Framework
Section/Page Number in Integrated Report
Principle 7: Responsible Policy Advocacy
1. Is your company a member of any trade and
P7-1
chamber or association? If Yes, Name only those
major ones that your business deals with.
2. Have you advocated/lobbied through
P7-2
above associations for the advancement or
improvement of public good? Yes/No; if yes
specify the broad areas (Governance and
Administration, Economic Reforms, Inclusive
Development Policies, Energy security, Water,
Food Security, Sustainable Business
Principles, Others)
Our business and subsidiary companies are
members of trade and industry bodies like
the Federation of Indian Mining Industries,
Confederation of Indian Industry, Indian Institute
of Metal, Federation of Indian Chambers of
Commerce & Industry and The Energy Resources
Institute, India, where they actively participate in
their Management Committees.
We are working to directly and indirectly support
government authorities to catalyse sustainable
development of the metals & mining sector. For
example, in recent years, we have worked with
the national authorities on various campaigns
like “Make In India”, resumption of mining in Goa,
reduction of iron ore and export duty among
others.
Principle 4: Engaging Stakeholders - Sustaining Value
1. Has the company mapped its internal and external
P4-1
stakeholders? Yes/No
2. Out of the above, has the company identified
the disadvantaged, vulnerable & marginalised
stakeholders.
P4-2
Yes
Yes
3. Are there any special initiatives taken by the
company to engage with the disadvantaged,
vulnerable and marginalised stakeholders. If so,
provide details thereof in 50 words or so.
Principle 5: Promoting Human Rights
1. Does the policy of the company on human rights
cover only the company or extend to the Group/
Joint Ventures/ Suppliers/ Contractors/ NGOs/
Others?
2. How many stakeholder complaints have been
received in the past financial year and what
percent was satisfactorily resolved by the
management?
Principle 6: Nurturing the Environment
1. Does the policy related to Principle 6 cover only
the company or extends to the Group/Joint
Ventures/Suppliers/ Contractors/NGOs/others.
2. Does the company have strategies/ initiatives
to address global environmental issues such as
climate change, global warming, etc? Y/N. If yes,
please give hyperlink for webpage etc.
P4-3
Together we help uplift communities
Making inclusive progress an everyday reality
Page 86-91
P5-1
Yes
P5-2
No complaints with respect to human rights
were reported.
P6-1
Yes
P6-2
Yes. Energy Management & Climate Change;
Page 78-79
3. Does the company identify and assess potential
P6-3
environmental risks? Y/N
4. Does the company have any project related to
Clean Development Mechanism? If so, provide
details thereof, in about 50 words or so. Also,
if Yes, whether any environmental compliance
report is filed?
P6-4
5. Has the company undertaken any other initiatives
P6-5
on – clean technology, energy efficiency,
renewable energy, etc. Y/N. If yes, please give
hyperlink for web page etc.
Yes
No
Yes. Energy Management & Climate Change;
Page 78-79
6. Are the Emissions/Waste generated by the
P6-6
Yes
company within the permissible limits given by
CPCB/SPCB for the financial year being reported?
7. Number of show cause/ legal notices received
from CPCB/SPCB which are pending (i.e. not
resolved to satisfaction) as on end of Financial
Year
P6-7
104
105
Employees at underground operational site, HZL
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...
BRR Section
BRR
Framework
Section/Page Number in Integrated Report
Principle 8: Support Inclusive Development
1. Does the company have specified programmes/
P8-1
initiatives/projects in pursuit of the policy related
to Principle 8? If yes details thereof
2. Are the programmes/projects undertaken
through in-house team/own foundation/
external NGO/government structures/any other
organisation?
P8-2
Community Empowerment Initiatives;
Page 88-91
We implement our programmes through all
the following modes – directly through our
Corporate Social Responsibility team and in
partnership with government and civil society
organisations. We also actively encourage our
own employees to contribute towards these
social initiatives.
3. Have you done any impact assessment of your
P8-3
Yes
initiative?
4. What is your company’s direct contribution to
community development projects- Amount in
INR and the details of the projects undertaken.
P8-4
Annexure B; Page 197
5. Have you taken steps to ensure that this
P8-5
community development initiative is successfully
adopted by the community? Please explain in 50
words or so.
Most of our programmes emerge from a
community needs assessment and are delivered
in close partnership with them. Several of our
initiatives, such as women’s self-help groups,
are now completely run and managed by the
community members themselves. Our role is
chiefly that of a catalyst in the whole process.
< BACK TO CONTENTS
Robotics lab at Gamsberg, Zinc International
BRR Section
Principle 9: Providing Customer Value
BRR
Framework
Section/Page Number in Integrated Report
1. What percentage of customer complaints/
P9-1
Nil
consumer cases are pending as on the end of
financial year.
2. Does the company display product information
on the product label, over and above what is
mandated as per local laws? Yes/No/N.A. /
Remarks (additional information)
P9-2
Yes. Our copper cathodes, aluminium are all
internationally known brands registered with the
LME (London Metal Exchange). LME standards
signify highest product quality, uniform physical
characteristics and consistency of products.
Our products meet all necessary and benchmark
national and global regulations, standards and
guidelines. This re-emphasises our capability
and commitment to meet world-class standards.
For continuous quality improvement, Quality
Management Systems are in place, which comply
with the ISO 9001:2008 standard requirements.
3. Is there any case filed by any stakeholder against
the company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
behaviour during the last five years and pending
as on end of financial year. If so, provide details
thereof, in about 50 words or so
P9-3
Nil
4. Did your company carry out any consumer
survey/ consumer satisfaction trends?
P9-3
Yes
Diverse workforce at Vedanta
106
107
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report AWARD
Recognised for
our excellence
< BACK TO CONTENTS
Category/ Recognition
Recipient
(Business Unit)
Sl.
No Name of Awards
Category/ Recognition
‘Safe & Secure High Hazard Facility’
Cairn Oil & Gas- Suvali
9.
Apex India Foundation Green
Leaf Platinum Award 2019
Sustainability
Recipient
(Business Unit)
Aluminium & Power –
Jharsuguda
Health and safety
Sl.
No Name of Awards
1.
2.
Finest India Skills & Talent (FIST)
Awards 2020 by Fire & Security
Association of India
Indian Chamber of Commerce
National Occupational Health &
Safety Awards 2020
3.
British Safety Council (BSC)
Indian Chamber of Commerce
National Occupational Health &
safety Awards for the Year 2020
‘Challenger Award’ and ‘Safety
Excellence Award’
4.
5.
6.
Vedanta – Value-Added business selected for Gold Award for
Manufacturing and Engineering Sector in Large Enterprise Category
Iron Ore
Cairn Oil & Gas midstream has won the “Sword of Honor” for
outstanding HSE management system. The Mid-stream managed to
achieve 94.4% with five-star rating during BSC assessment audit
Cairn Oil & Gas
For Manufacturing and Engineering sector in Large Enterprise
Category
Iron Ore
HSE - Frost & Sullivan Sustainability Awards
Pantnagar - HZL
APEX India Occupational Health
and Safety Award 2020
APEX India Foundation
Environmental and social
Sl.
No Name of Awards
Category/ Recognition
1.
2020 edition of Sustainability
4.0 Award
Under the mega large business category, it was awarded The Leaders
Award.
2. CDP ‘A List’
For efforts to tackle climate change
3.
4.
The Dow Jones Sustainability
Index 2020
Identified as ‘Responsible
business of the Year’& awarded
with Grant Thornton SABERA
Award 2020.
Ranked 1st in Asia-Pacific and 2nd Globally in ‘Environment’
Community Development
5. CII – ITC Sustainability Awards
Commendation for Significant Achievement
2020
6.
Apex India Green Leaf Awards
‘Gold’ award in the category of ‘Energy Efficiency’
Vedanta Ltd.,
Jharsuguda
Recipient
(Business Unit)
Cairn Oil & Gas
HZL
HZL
HZL
HZL
HZL
10. CII National Award
Excellence in Water Management 2020 under ‘Within the Fence’
category
Aluminium & Power –
Lanjigarh
11. Green Tech Foundations’ CSR
Award
‘Project Unnati: Empowering Women and Making Women Financially
Independent’
BALCO
12. CII-ITC Sustainability Awards
‘Commendation for Significant Achievement – CSR’
BALCO
2020
13. 15th CII ITC Sustainability Award
‘Excellence in Corporate Social Responsibility’ category
Cairn Oil & Gas
2020
14. 14th edition of CII-National
Awards for Excellence in water
management 2020
MBA (Mangala, Bhagyam, Aishwariya) operation under the ‘Within
Fence’ category.
Cairn Oil & Gas
15. Brand India Excellence Award
For Most Innovative CSR Program of the Year
2020
16. CII Environmental Best Practices
HSE - ‘Most Innovative Environmental Project’ category
Award 2020
ESL
HZL
17. 14th ICC Environment
Excellence Award (2020)
From the Indian Chamber of Commerce in the Large Enterprise
category at the 14th Environment Partnership E-Summit
ZSD - HZL
18. Sustainability 4.0 Awards
The leaders awards under the mega large business category and
the first runner-up award under the Jury Special Mention Award on
‘Recycling of Produced Water for Injection Purpose’
Cairn Oil & Gas,
Vedanta ltd
19. Mahatma Award 2021
Social Award
BALCO
7. CII National Awards
HZL’s Sindesar Khurd Mine wins for Excellence in Water Management
HZL
8.
FAME Excellence Awards
CPP at Dariba Smelting Complex wins Gold for Energy Efficiency and
Water Stewardship
HZL
108
Sewage Treatment Plant at Udaipur
109
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
Category/ Recognition
Recipient
(Business Unit)
Sl.
No Name of Awards
Category/ Recognition
Recipient
(Business Unit)
People Business in association with the Economic Times
HZL
11. National Energy Conservation
Bureau of Energy Efficiency, Govt. of India
Vedanta Ltd., Lanjigarh
AWARDS CONTINUED...
People
Sl.
No Name of Awards
1. Company with Great
Managers 2020
Award
12. Kalinga Safety Excellence
Institute of Quality & Environment Management Services (IQEMS)
‘Gold’ Award
13.
IMC Ramakrishna Bajaj National
Quality (RBNQ) Award
IMC Chamber of Commerce & Industry
Vedanta Ltd., Lanjigarh
14. State Level CCQC ‘Gold’
Quality Circle Forum of India, Rourkela Chapter
2.
3.
4.
Asian Business Leaders Award
2020-21
Abhijit Pati, CEO BALCO, awarded Most Promising Business Leader of
Asia 2020-21
BALCO
SHE (Safety, Health &
Environment) Excellence Award
Large Scale Manufacturing Sector category
ESL
11th CII National HR Excellence
Award 2020-21
People’s CEO of the Year Award’ to Mr. Rahul Sharma, Dy.
CEO – Aluminium Business
5. CEO Insights
Mr. Deepak Prasad recognised as TOP 20 Chief Operating Officer 2020
BALCO
Operational and business excellence
Sl.
No Name of Awards
Category/ Recognition
Recipient
(Business Unit)
1.
Annual BS 1000 (By total
revenue)
2.
26th Bhamashah Award
Ranked 14 (3rd in the sector rankings of Metals, Mining & Minerals)
Vedanta Limited
HZL’s five units – Chanderiya Smelting Complex, Rajpura Dariba
Complex, Zawar Mines, Rampura Agucha Mines and Kayad Mine
HZL
3. Certified “FIVE-S Workplace
Management System” by Quality
Circle Forum of India (QCFI).
Central Polymer Facility, Bhagyam Operations and Satellite Field and
Unloading Bay -SFON Operations received the award
Cairn Oil & Gas
4.
5.
6.
LACP (League of American
Communications Professionals)
Awards
HZL’s First Integrated Annual Report (FY2019-20) – theme “Smart
Mining for a Sustainable Future” received inspiring recognitions and
included in top 100 publications of 2020
SAP Ace Award 2020
For HZL’s ‘EVOLVE’ and ‘CONFLUENCE’ platforms
HZL
HZL
Bangladesh Society for Total
Quality Management (BSTQM)
Platinum Award at International Convention on Quality Control Circles
(ICQCC) 2020
Aluminium & Power –
Lanjigarh
7. Manufacturing Sector CII 5S
Diamond Rating and emerged as Runner up
BALCO
Excellence Award
Association of Business
Communicators in India (ABCI)
PR and Communications won Bronze Award for ‘BALCO Today’
BALCO
45th International Convention
on Quality Circles
Cairn Oil & Gas’s RJ Gas SBU secures platinum award in 5S for
workplace management at the international level round
Cairn Oil & Gas
8.
9.
10. 8th FICCI Quality Systems
For Industry 2020 for Good Practices in Quality Systems
ESL
Excellence Awards
TPP, Vedanta Ltd.,
Jharsuguda
Vedanta Ltd.,
Jharsuguda
Vedanta Ltd.,
Jharsuguda
BALCO
BALCO
BALCO
Recipient
(Business Unit)
Award 2020
15. Golden Peacock Award for
Operational Excellence
Sustainability
16. National Awards for
Gold Medal
Manufacturing Competitiveness
(NAMC) 19-20
17. Most Trusted Brands Of
CNBC TV18
India 2021
Digitalisation
Sl.
No Name of Awards
Category/ Recognition
1.
2.
Inflection Award for
Procurement Automation
Project, 2021
Singapore Institute of Materials Management & Council of Supply
Chain Management Professionals
Vedanta Ltd.,
Jharsuguda
TechCircle Business
Transformation Awards 2020.
Excellence in Digital Execution for Quality Transformation for the
‘Next Generation Workplace – Office 365’
Cairn Oil & Gas
3. CII – Centre for Digital
Transformation
Most innovative Best Practice Digital Transformation Award
Aluminium & Power –
Jharsuguda
4. CII’s Digital Transformation (DX)
Innovative Best Practice Award bagged for the Copper Buddy project
Sterlite Copper
Summit & Awards 2020.
110
Offshore Rig, Cairn Oil & gas
111
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report < BACK TO CONTENTS
MANAGEMENT
DISCUSSION
AND ANALYSIS
We recorded strong operational and financial performance in
FY2021 amidst the challenges faced due to the pandemic. At
VEDL, we continue to focus on controllable factors such as
resetting cost base through diverse cost optimisation initiatives,
disciplined capital investments, working capital initiatives,
marketing initiatives and volume with strong control measures
to ensure safe operations across businesses within framed
government and corporate guidelines amidst the pandemic.
KEY STATISTICS:
`86,863 crore
Revenue
` 27,341 crore
EBITDA
36%
EBITDA Margin
`13,880 crore
Capital work-in-progress
`32.80
EPS (before exceptional items)
(FY2020: `10.79 per share)
`9.50
Per share interim dividend
112
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
113
MANAGEMENT DISCUSSION AND ANALYSIS
Market review
< BACK TO CONTENTS
GLOBAL ECONOMY
AND COMMODITY MARKETS
The COVID-19 pandemic and the
widespread lockdowns imposed
by countries in 2020 triggered the
worst peacetime global contraction
since the Great Depression in 1929.
The subsequent and gradual easing
of containment measures during
the second half of the year, initially
caused a strong rebound. This
initial spurt in economic activity,
however, lost momentum in some
regions of the world towards the
end of the year due to a renewed
rise in infections. The recession and
the pandemic-related restrictions
also caused global trade to contract
substantially, which hampered
growth further, particularly in
export-dependent economies.
The US economy suffered a major
drop in the first half of the year,
accompanied by a huge surge in
unemployment. Owing to a vast array
of monetary and fiscal measures,
as well as the comparatively
moderate government restrictions,
the economy recovered in the
second half of the year. In the first
half of 2020, the pandemic and the
associated containment measures
also caused the economies of
Eurozone to plunge into a deep
recession that affected the
manufacturing and services sectors
equally. However, this decline
varied greatly among different
member states.
Although China was the epicentre of
the outbreak, the country imposed
one of the most stringent lockdowns
to flatten the curve and bring the
economy back on track. The result is
that the annual industrial production
in the Chinese economy declined to
-13.5% during January - February
2020 but reached 7.3% in December.
Most of the economies faced major
contraction in GDP in Q2 of 2020,
except for the Chinese economy,
which grew 3.2% y-o-y.
114
QUARTERLY GROWTH RATE OF REAL GDP
Lanjigarh Plant
25
15
5
-5
-15
-25
8
3
3
9
4
4
0
0
6
5
.
.
.
.
.
.
.
.
.
.
6
9
1
7
3
.
.
.
.
.
3
8
3
2
.
.
.
.
5
6
2
1
0
5
6
2
1
0
4
5
2
1
1
3
5
2
1
)
0
.
1
(
0
.
3
3
.
0
2
.
3
9
.
4
4
5
.
.
0
6
)
9
)
1
)
8
.
2
(
.
4
(
.
5
(
)
4
)
6
)
3
.
.
.
2
(
4
(
1
(
)
7
)
1
.
.
2
(
2
(
)
8
.
6
(
)
4
7
(
.
)
9
(
)
8
)
3
.
.
3
1
(
0
1
(
)
4
.
4
2
(
Q1-2019
Q2-2019
Q3-2019
Q4-2019
Q1-2020
Q2-2020
Q3-2020
Q4-2020
India
China
USA
EU
Japan
IMF has reported that the global pandemic-related fiscal
actions of US$146 trillion, comprising US$10 trillion in
additional spending and forgone revenue and US$6 trillion
government loans, guarantees, and capital injections,
mitigated the contraction in economic activity
Several fiscal measures were
announced by the US as relief
package and stimulus to the
US economy under CARES Act
(estimated US$2.3 trillion or ~11% of
GDP), Paycheck Protection Program
and Health Care Enhancement
Act (US$483 billion), Consolidated
Appropriations Act of 2021
(US$868 billion or about 4.1%
of GDP), American Rescue Plan
(estimated US$1,844 billion or about
8.8% of GDP) etc. Such stimulus
packages were primarily focused
on direct stimulus payments to
individuals, unemployment benefits,
tax rebate, food safety, assistance
to families, communities and
businesses, corporate bankruptcy
prevention, healthcare, international
assistance etc. The federal funds
rate was lowered by 150bp in March
to 0-0.25bp to facilitate credit
flow and relieve the stress in the
economy. Federal Reserve also
introduced facilities to support credit
flow, in some cases backed by the
treasury using funds appropriated
under the CARES Act.
The package of €540 billion provided
by the European Commission was
targeted towards Pandemic Crisis
Support, government guarantees
to European Investment Banks, and
job protection. EU also finalised the
agreement on the Next Generation
EU (NGEU) recovery fund which
will provide €750 billion through
borrowing at the EU level. The
European Central Bank (ECB) also
introduced new and extended
existing monetary policy supports.
The Government of China
announced a stimulus of RMB 4.8
trillion (4.7% of GDP) for spending
on epidemic prevention and control,
production of medical equipment,
unemployment mitigation,
tax relief, and additional public
investments. The stimulus packages
injected by the economies helped
accelerate GDP growth that had
faced a significant decline in the
initial quarters.
Following the vaccine rollout and
backed by stimulus packages,
CY2021 GDP growth is likely to
be high (chart IMF GDP growth of
major economies). However, the
recovery is not even and varies
widely among advanced economies,
emerging economies and developing
economies. Government support
also brings about elevated
debt levels.
With over 136 million confirmed
cases of COVID-19 and 2.9 million
deaths worldwide reported by
WHO till 13 April 2021, the world
is still facing a crisis to contain
the virus and resume economic
activities. Policy measures
COVAX, convened by WHO and
CEPI GAVI have been initiated
to support homogeneous
vaccination worldwide.
REAL GDP GROWTH FORECAST 2021
(% y-o-y)
USA
6.4
Euro Area
4.4
3.3
Japan
China
India
World
Source: IMF
8.4
12.5
6.0
As the economy gradually regains
its pre-COVID momentum and as
mobility increases, oil demand is
expected to surge. This is likely to
revive by the latter half of the year
due to the ongoing lockdown in
certain regions. The widespread
vaccination initiatives will further
encourage economic activities to
normalise by the end of the year,
accelerating the bounce-back of the
Oil & Gas market.
Our diversified commodity portfolio
and emphasis on cost and digital
implementation position us well
to take advantage of the expected
demand revival, and the resulting
improvement in commodity prices.
Opportunities for Vedanta - Global
Globally, monetary, and fiscal policies
have been targeted to mitigate the
adverse effect of the pandemic.
Initiatives were taken to encourage
private sector investments,
which will subsequently spur the
commodity demand worldwide.
With metal prices going back to the
pre-COVID level and the recovery
of the manufacturing industries,
Vedanta has a positive outlook to
benefit from the commodity
market revival.
The revival of the Chinese economy,
driven by the improvement in the
infrastructure sector has been a
major contributor to bring back the
price level of the metals and minerals
market. Upcoming infrastructure
plans to become the global leader in
high-tech and innovative industries
will drive the domestic primary
metal demand, creating export
opportunity for producers. Vedanta,
with a substantial share in the export
market, is looking forward to fulfilling
the global demand.
115
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
INDIAN ECONOMY
India continues to be Vedanta’s primary market, and the V-shaped recovery of the economic performance of India in
FY2021 is positive for us. COVID-19 was particularly challenging for the Indian economy with a prior slow growth rate,
declining exports, rising inflation, and a downturn in manufacturing output. The index of industrial production (IIP)
declined drastically to -57.3% in April 2020 following nationwide stringent lockdown across India, halting economic
activities. The country’s GDP growth also spun into negative territory, declining by 24.4% in the Q1FY2021.
GROWTH RATE IN INDEX OF
INDUSTRIAL PRODUCTION
(% y-o-y)
GDP GROWTH OF INDIA
(y-o-y)
2.2
5.2
4.5
1.0
1.6
(10.6)
(7.1)
(1.6)
(0.9)
(3.6)
(18.7)
(16.6)
(33.4)
(57.3)
10
0
(10)
(20)
(30)
(40)
(50)
(60)
(70)
10
5
0
(5)
(10)
(15)
(20)
(25)
(30)
7.6
6.5
6.3 5.8
5.4
4.6
3.3
3.0
0.4
(7.3)
(24.4)
0
2
-
n
a
J
0
2
-
b
e
F
0
2
-
r
a
M
0
2
-
r
p
A
0
2
-
y
a
M
0
2
-
n
u
J
0
2
-
l
u
J
0
2
-
g
u
A
0
2
-
p
e
S
0
2
-
t
c
O
0
2
-
v
o
N
0
2
-
c
e
D
1
2
-
n
a
J
1
2
-
b
e
F
Q1 Q2
Q3 Q4 Q1
2018-19
Q2 Q3 Q4
2019-20
Q1
Q2 Q3
2020-21
Source: MOPSI
To prevent the country’s GDP from
contracting further and to bring
it back into positive territory, the
Government of India took bold,
swift and unconventional initiatives.
It announced a special economic
and comprehensive package under
‘AatmaNirbhar Bharat Abhiyaan’
of `20 lakh crore – equivalent to
10% of India’s GDP – to combat the
pandemic-induced stress.
Complementing the government’s
fiscal measures, the RBI adopted
proactive steps to inject liquidity into
the economy and to provide relief to
COVID-hit sectors. It reduced the
repo rates to 4% and reverse repo
rates to 3.35% and implemented a
moratorium on the payment of term
loans.
The Micro, Small and Medium
Enterprises (MSME) sector was
hardest hit by the pandemic.
Two major schemes such as the
Emergency Credit Line Guarantee
Scheme (ECLGS) and the Credit
Guarantee Scheme for Subordinate
Debt (CGSSD) were introduced by
the Government of India to provide
emergency relief. These initiatives
were complemented by various
116
monetary and regulatory measures
by the RBI in the form of interest
rate cuts, higher structural and
durable liquidity, moratorium on
debt servicing, asset classification
standstill, loan restructuring package
and Cash Reserve Ratio (CRR)
exemptions on credit disbursed to
first-time MSME borrowers.
In the concluding months of FY2021,
growth in e-way bills, railway freight,
steel consumption, automobile
sales and electricity generation
were observed. This indicates
V-shaped recovery of the economy.
The necessary interventions by the
government helped the economy
revive from the low of Q1FY2021 to
register a small positive growth of
0.4% in GDP in Q3FY2021.
India has rolled out the world’s
largest vaccination drive to
inoculate close to 1.4 billion people.
Accelerated vaccination will help
resume the suspended economic
activities and will improve the
affected industries in the country.
The success of the vaccination drive
will also create a positive outlook for
the economy, going forward.
Outlook
The IMF has projected an impressive
12.5% growth rate for India in
2021. This suggests that India’s
GDP growth rate is likely to be the
fastest in the world among the major
economies in 2021. The large-scale
capital expenditure announced
by the Government of India in the
Union Budget 2021-22 will support
economic activity and investment.
The capex cycle, triggered by the
government, is likely to crowd in
private investment, which is expected
to drive economic growth, and
consequently, more opportunities
for business and employment
generation. However, the recent
surge in COVID-19 cases in India may
pose some constraints in the growth
prospect of India.
Opportunities for Vedanta - India
The country’s economic growth is
supported by a sound fiscal policy
framework, strong regulatory
mechanism, and wide-ranging
structural reforms undertaken by
the Government of India and states
The Government of India’s
emphasis on self-sufficiency
(Aatmanirbhar Bharat), will
< BACK TO CONTENTS
strengthen the country’s demand
for commodities. Concrete steps
towards decarbonisation and
promotion of electric mobility
will accelerate the initiation of
new energy-based models and
innovation in value chains
Given that India’s per capita
consumption of all metals including
steel, aluminium, copper, and zinc
is much below the world average,
there is significant headroom for
growth
India is the world’s third-largest
oil consumer, but in per-capita
terms, it is only about one-third of
the world’s average. The country’s
growing energy needs and increased
dependence on crude oil imports
offer an attractive opportunity for
domestic oil producers
Policy support
Aatmanirbhar Bharat Package
As a part of the economic package
under ‘AatmaNirbhar Bharat
Abhiyaan’ several structural reforms
were announced by the Hon’ble
Finance Minister, including mineral
and coal sectors. Some of the major
focus areas relating to the mineral and
coal sectors are highlighted below:
Seamless composite exploration-
cum-mining-cum-production
regime
500 mining blocks to be auctioned
transparently
Removal of distinction between
captive and non-captive mines
to allow the transfer of mining
leases and sale of surplus unused
minerals
Introduction of Joint Auction of
bauxite and coal mineral blocks
to enhance Aluminium Industry’s
competitiveness
Development of Mineral Index for
different minerals
Rationalisation of stamp duty
payable at the time of award of
mining leases
Exploration-cum-production
regime for partially explored coal
blocks
Incentivisation through rebate in
revenue-share for production of
coal earlier than scheduled
Coal evacuation infrastructure
development of `50,000 crore
Commercial coal mining – In a major
policy reform, the Hon’ble Prime
Minister launched the auctioning of
commercial coal mining. This was
aimed at fully opening the coal and
mining sectors for competition,
capital, participation, and technology
to make the coal mining sector
self-reliant. This will have a positive
impact on coal-consuming sectors
such as steel, aluminium, fertilisers,
and cement. Salient features of this
reform include revenue sharing-
based auction methodology from
earlier fixed rupees per tonne-based
auction of coal blocks, permission
for commercial exploitation of coal
bed methane, rebates in revenue
share payments in the event of
early production of coal from the
coal mine, and so on. Vedanta is
advocating for similar incentives to
be provided for other minerals.
Iron & steel, aluminium and copper
identified as key sectors for
exports – The Government of India
has identified 20 sectors in which
India can meet domestic demand as
well as become a ‘global factory of
the world’ by growing exports and
reining in costly imports. Iron & steel,
aluminium and copper are included in
this list. The Ministry of Commerce
& Industry will conduct further study
on these sectors to look into areas to
enhance export competitiveness.
Production – Linked Incentive (PLI)
Scheme – To bolster investments in
domestic manufacturing, the Union
Cabinet of India has unveiled the PLI
Scheme in 10 key sectors. This is also
a part of India’s endeavour towards
self-reliance through enhancing
India’s manufacturing capabilities and
increasing exports. The ten sectors
are – (1) Advance Chemistry Cell (ACC)
Battery, (2) Electronic/Technology
Products, (3) Automobiles & Auto
Components, (4) Pharmaceuticals
drugs, (5) Telecom & Networking
Products, (6) Textile Products, (7)
Food Products, (8) Solar PV Modules,
(9) White Goods (ACs & LED) and
(10) Specialty Steel. The scheme has
approved financial outlay of `1,45,980
crore over a five-year period. This
is apart from already notified PLI
schemes in the mobile manufacturing
and pharmaceutical sector with a
financial outlay of `51,311 crore.
Although non-ferrous base metal
manufacturing sector has not been
considered for the PLI scheme,
the sector will indirectly benefit
from higher metal demand from
increased manufacturing of battery,
automobile, solar PV module, white
goods, and specialty steel.
Marketing freedom for natural
gas – Taking a significant step
towards gas-based economy with
the objective of increasing domestic
production of natural gas, the
Cabinet Committee on Economic
Affairs has approved ‘Natural Gas
Marketing Reforms’.
Union Budget for 2021-22 – The
Union Budget has proposed
`5.54 lakh crore for capital
expenditure for 2021-22 which is
34.5% more than the BE (Budget
Estimate) of 2020-21, which will
increase demand for products
made with metals and minerals as
key raw material. Proposal to set up
Development Financial Institution
(DFI) for infrastructure financing
for a lending portfolio of at least
`5 lakh crore in three years’ time
is a big boost for infrastructure
development which will augment
demand for metals and minerals.
The increased allocation to several
schemes such as Road Transport,
Jal Jeevan Mission, Metro Projects,
Strengthening of Power Systems, and
New and Renewable Energy will drive
the demand for commodities.
The Government of India’s roadmap
on disinvestment of public sector
enterprises in all non-strategic
and strategic sectors along with
monetisation of non-core assets
of PSEs provides investment
opportunities to private sector in
good quality assets.
117
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Segment review
Market drivers
Despite the effects of the pandemic,
governments and institutions are
likely to continue their efforts to try
and support economies. As a result,
zinc consumption is expected to
grow by 4%, marking the first annual
increase in zinc consumption in the
past three years.
In the Indian construction sector,
to help mitigate corrosion loss,
Corrosion Protection Rebars have
recently been adopted by few
domestic rebar manufacturers, who
are working in collaboration with
the International Zinc Association
(IZA) to bring Continuous Galvanized
Rebar Plant to India. Indian Railways,
considering the safety and longevity
of rail tracks, are working on different
mechanisms to protect the web
area of rail from corrosion. Zinc
Thermal Metallisation which has
been considered globally as the best
method to prevent corrosion of
railway tracks, is expected to soon
adapted in India.
Galvanising has been the key driving
force of zinc demand mainly in
construction and infrastructure,
and automobiles. The `1,18,101
lakh crore allotment for the Ministry
of Road Transport and Highways
will boost zinc consumption, led
by the development of road crash
barriers and galvanised steel bridges.
Also the 100% electrification of
Broad-Gauge Railway routes are
to be completed by December,
2023, which will further contribute
towards zinc demand in India, led by
electrification in railways.
Products and customers
Hindustan Zinc Limited (HZL) is the
largest primary zinc producer in
India, with an expected 77% market
share in 2021. Around 70% of the
refined zinc produced by HZL’s
smelters is sold in the domestic
market, and the rest is being
exported to South-East Asian and
Middle Eastern markets. Over 70% of
the Indian zinc demand comes from
galvanising steel, predominantly
used in the construction and
infrastructure sectors. HZL also
produces Continuous Galvanizing
Grade (CGG), EPG (Electro Plating
Grade) and two grades of zinc for use
in die-casting alloys. The Company
is working closely with its customers
to increase the proportion of value-
added products (VAP) in its zinc
portfolio. It strives to increase the
supply of VAP to 25% of total zinc
sales in FY2022, from 16% in FY2021.
output to increase by 1% despite an
8% decrease in mine production.
Demand for lead acid batteries,
which drive more than 80% demand
for lead, was muted for Q1 due to
the lockdown, but we witnessed a
marginal improvement in the lead
acid battery (LAB) segment, driven
by the upsurge in aftermarket
demand for replacement of old and
discharged products. As per internal
estimates, the LAB segment’s
revenue was approximately `33,000
crore in FY2021, driven by an
aftermarket volume growth of 14%
in two-wheelers and 6% in other
vehicular batteries.
Market drivers
Automotive original equipment
is impacted in the short and
medium term, although heightened
replacement demand provided an
effect offset; industrial batteries hold
opportunities for growth, although
motive power will be hit by reduced
goods handling while global trade
recovers, but stationary batteries
have proved their strength for
stand-by power and hold excellent
prospects for future energy storage
systems.
Zinc
Overview
Starting FY2021 below US$1,900/
tonne, zinc prices started soaring
and touched the US$2,800/tonne
mark. This can be attributed to
the disruption of global zinc mine
supply affected by the pandemic.
Mine closures in Peru and Mexico in
particular have played a major role in
the recovery of prices.
But as restrictions started to ease
and the world resumed operations,
both demand and supply started to
align with pre-COVID levels in Q3
and Q4 of FY2021. This helped the
players maintain a steady price of
around US$2,700/tonne. At a supply
level, refined zinc metal production
increased by 1.2% y-o-y to 13.64 mt
in 2020 with a 2.9% growth.
Lead
Overview
Rising from the pandemic-induced
stupor, sustained rally in base metals
increased lead’s value by one-third
from its low point, before sliding only
a little at the end of the year. There
has been a significant drawdown in
concentrate stocks in 2020. This
helped global primary refined lead
118
< BACK TO CONTENTS
Few key factors that could affect the
lead markets in 2022 are:
The post-pandemic green energy
transition and the push for EVs
Short-term demand
Elevated mine disruption
Smelter rationalisation
The Nordenham question
This is based on the base case
assumption of rollout of vaccination
programmes for COVID-19 which will
bring the effects under control.
Products and customers
India’s refined lead market is about
1.1 mt, including both primary and
secondary markets. The primary
lead market, which is approximately
280 kt in size, remained stagnant
in 2020. Vedanta has increased
its domestic share in the primary
market by 17% in Q3 & Q4 of FY2021.
We expect to close at the same rate
and 85% of our production will be
consumed by the domestic market
and the rest will be exported to the
South-East Asian market. Next
year, we are expecting to increase
our sales by 3-4% through new
customer acquisition enabled by
our e-commerce platform (Evolve),
and by introducing lead alloys in our
product portfolio. In the current year,
a total of 38 new customers have
been added through conventional
and digital channels.
Silver
Overview
Silver recorded a sterling
performance in FY2021. Silver
capitalised on its ‘safe haven’ appeal
in March and April; and subsequently
was bolstered by growing industrial
demand. Reaching a seven-year high
in August of US$28.32 per ounce
after sinking to an 11-year-low of
US$11.59, highlights silver’s ability
to outperform gold. From its lowest
to highest point in 2020, silver price
grew 137%, vis-à-vis gold’s 38%.
Market drivers
FY2022 is forecast to see a strong
recovery, and the outlook beyond
2021 is promising as the Indian
economy improves, coupled with
rising consumer confidence and as
the market increasingly embraces
purer sterling silver jewellery.
With the onset of the COVID-19
pandemic, the market saw an
increasing number of countries
introduce accommodative monetary
policies. This has helped drive down
real interest rates and, together with
a rotation in favour of safe-haven
assets, encouraged investors to buy
into silver and other precious metals.
A bullish mood for silver has been
witnessed in the opening weeks of
2021. In early February, a jump in
retail investor appetite for silver,
spurred on by social media platforms,
pushed the price to an 8-year high of
US$31.10, while the gold: silver ratio
fell to 62, a 7-year low.
Going forward, the outlook for
the silver price in remaining 2021
and FY2022 remains exceptionally
encouraging and we expect silver to
comfortably outperform gold this
year, with silver demand forecast
expected to rise by 11% in FY2022.
Products and customers
Hindustan Zinc is India’s only
primary silver producer and ranks
6th globally among the top silver
producing companies. Exclusively
catering to the domestic market,
HZL’s production is consumed by the
industrial (electrical contacts, solder
and alloys, and pharmaceuticals),
jewellery and silverware sectors.
Last year, the Company started spot
sales of silver through an e-auction
to reduce manual intervention,
providing equal opportunity to all
buyers to compete, while ensuring
complete price transparency during
the process.
Lead Ingots produced by HZL
119
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Market drivers
The oil market suffered a historic
shock in CY2020, because of the
pandemic-induced socio-economic
crisis. However, there is room for
relief as the contraction in the
global economy in CY2020 has been
restricted after the better-than-
expected actual performance by key
economies in H2 CY2020. Additional
stimulus measures in the US and
an accelerating recovery in Asian
economies are expected to push oil
demand further.
World oil demand in CY2020 shows
a contraction of 9.6 mb/d, to stand
at 90.4 mb/d. OECD oil demand
contracted by 5.6 mb/d, while
non-OECD demand declined by
4 mb/d. For 2021, world oil demand
is expected to stand at 96.3 mb/d.
India is the world’s third largest
oil consumer, the fourth largest
refiner, and a net exporter of refined
products. The country currently
meets 84% of its oil consumption
and 54% of its gas consumption
through imports.
The Government of India aims to
increase the share of natural gas in
the country’s energy mix to 15%
by 2030, from the current 6%.
To improve energy security, the
government has prioritised the
reduction of oil and gas imports,
increasing domestic upstream
activities, diversifying its supply
sources, and increasing Indian
investments in overseas oil fields.
Vedanta has a world-class resource
base, with 58 blocks in India. With
a strengthened growth pipeline
in exploration and development,
the Company is well positioned to
contribute significantly more to
the country’s domestic crude oil
production in the coming years.
Products and customers
Vedanta is the largest private
sector producer of crude oil in India.
The Company’s crude is sold to
hydrocarbon refineries and our natural
gas is used by the fertiliser industry
and the city gas sector in India.
rebounded in September 2020
quarter, driven by strong demand
from the auto segment and higher
extrusion demand. After declining
y-o-y for six consecutive months
(March to August 2020) imports
grew by 27.8%, 8.8% and 46.6%
y-o-y in September and October
and November 2020, respectively.
This trend reflected a strong revival
in domestic demand. The industry’s
capacity utilisation rate dipped to
83% in the Q1FY2021. However, the
utilisation rate improved to 86% in
Q2, and reached pre-COVID level
(93%) in the December 2020 quarter.
Market drivers
The long-term fundamentals of
the Indian economy continue to be
sound. The country’s market is likely
to have robust growth, supported
primarily by increased industrial
activity and government focus on
infrastructure sector and domestic
manufacturing in the country.
Several government initiatives like
Aatmanirbhar Bharat, Make in India,
Production Linked Incentive (PLI) for
domestic manufacturing, National
Infrastructure Pipeline and National
Rail Plan have been rolled out by the
Government of India. These tailwinds
will help the economy recover faster
in the coming quarters. Taking these
macro drivers into cognizance,
Vedanta continues to expand its
value-added product portfolio in line
with the evolving market demand.
Products and customers
With an annual installed capacity of
2.3 million tonnes, Vedanta is India’s
largest primary aluminium producer.
It leads the segment with a domestic
market share of ~47% among Indian
primary producers.
Oil and gas
Overview
The oil price war between Saudi
Arabia and Russia during the height
of the first virus wave in April 2020
triggered WTI oil futures to move into
negative territory for the first time in
the commodity’s history. The shift in
position by Saudi Arabia and decisive
action by OPEC and its allies ensured
that oil prices not only bounced back
to more ‘reasonable’ levels, but the
price rebound was also durable.
Production cuts were successful,
with Brent Crude back above US$70 a
barrel and WTI not far behind.
Aluminium
Overview
India’s aluminium demand
(Q1 & Q2 FY2021) remained muted
following the COVID-induced
lockdown. However, export
demand (~50-55% of total primary
aluminium production) remained
robust. Domestic demand partially
recovered in Q2, and exports
improved marginally.
Imports declined 28%, adversely
impacted by lower domestic demand
in Q1. However, domestic demand
< BACK TO CONTENTS
An evening view of the Lanjigarh facility
Vedanta’s product portfolio includes
aluminium ingots, primary foundry
alloys, wire rods, billets, slabs, and
rolled products. These products
cater to varied industries globally
such as power, transportation,
construction & packaging to name
a few. As much as 37% of Vedanta’s
total aluminium sales globally were
high quality value-added products.
Our major focus area is the domestic
market. In FY2021, domestic sales
volume was marginally improved by
~1% y-o-y. The sales growth was
bolstered by increased demand in the
electrical, construction & transport
sectors. Value-added products
accounted for ~60% of the domestic
sales. Vedanta’s international sales
volume increased by ~8% y-o-y to
1.36 million tonnes.
Market drivers
India’s power demand is likely to
touch 1894.70 TWh by FY2022 (7%
CAGR) from 2007 baseline, driven
predominantly by multiple factors
(expansion in industrial activities,
growing population, rising per
capita income, policy support and
increasing electricity penetration).
The Government of India and
state governments have also been
supportive of the growth in the power
sector, delicensing the electrical
machinery industry and allowing 100%
Foreign Direct Investment (FDI). In
addition, policy support (Saubhagya,
IPDS, DDUGJY, UJALA, R-APDRP,
UDAY, NIP, and many others) have
provided much-needed impetus to the
sector. The country’s power sector
is likely to attract an investment of
US$128.24 billion-US$135.37 billion
between FY2019 and FY2023.
Energy sector projects accounted
for the highest share (24%) in the
US$1.4 trillion NIP between FY2020
and FY2025 (Source: Economic
Survey). The Government of India has
recently opened the coal sector for
commercial mining, which is expected
to ease any coal availability hassles.
As of February 2021, India had total
installed capacity of 379 GW (379.130
GW), of which thermal constituted
233 GW, nuclear 7 GW, hydro 46 GW
and renewables at 91 GW.
Vedanta’s power portfolio is well
positioned to capitalise on India’s
growing demand for power.
Products and customers
Vedanta Power business operates
over 9 GW power portfolio in India.
Of Vedanta’s power portfolio in
Aluminium and Power business, 37%
is used for commercial power while
63% is meant for captive use. The
power generated for commercial
purposes is backed by long-term
Power Purchase Agreements with
state distribution companies such
as Punjab, Tamil Nadu, Kerala,
Chhattisgarh, and Odisha.
Power
Overview
India is the third largest electricity
producer in the world. The
electricity generation target for
conventional sources for FY2021
has been fixed at 1,330 billion units
(BU), 6.33% higher y-o-y . Between
FY2016 and FY2019, the country’s
electricity generation grew at
3% CAGR, driven by government
initiatives and schemes to increase
rural electrification and provide
round-the-clock power supply.
120
121
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
market prices remained robust
throughout the year post market
recovery in May 2020.
Market drivers
Iron ore prices are expected to stay
high in 2021. The primary drivers of
high iron ore prices are expected
to hold throughout 2021. Although
Vale has announced plans to expand
its capacity significantly, much of
the resulting output is not expected
to reach seaborne markets for at
least two to three years. BHP and
Rio Tinto are bringing new mines to
production in the Pilbara region of
Western Australia, but much of the
resulting output will substitute for
depleting mines in the same area.
Consequently, overall output growth
is not expected to occur at a pace
which reduces prices significantly.
A range of factors could put
downward pressure on prices over
the coming months. Some price
falls are expected, as Vale’s Brazilian
operations steadily return to output
levels prior to the January 2019
Brumadinho dam collapse. Overall,
Brazilian output is expected to
recover to normal levels by the end
of 2021. Chinese government’s
stimulus measures could also be
phased down in the second half of
2021, reducing the imperative for
rapid purchases of iron ore to meet
production schedules and allowing
some build-up of iron ore at ports.
Products and customers
Iron ore, a key ingredient in
steelmaking, is used in the
construction, infrastructure, and
automotive sectors. Our iron ore
mining operations ceased in Goa
from March 2018, pursuant to the
Supreme Court order. Meanwhile,
the permitted mining capacity
at Karnataka has recently been
increased from the previous
4.5 million tonnes in FY2020 to
5.6 million tonnes.
Iron ore
Overview
Karnataka’s iron ore industry
remained subdued in Q1FY2020,
as the demand remained tepid, and
the utilisation level of dependent
steel units was less than 50%. There
was gradual improvement from the
demand side in Q2 with relaxation of
lockdown guidelines. This resulted
in stable prices in Q2 vis-à-vis
Q1, which was volatile because of
uncertainties. The Q3 and Q4 were
driven by strong demand from the
steel market, clearly indicating
market recovery. International
steel demand began to rise. As
construction activity returned to
pre-COVID levels, the industry
became bullish on steel price. Strong
domestic demand, along with good
exports, aided the steel industry’s
production and sales growth in Q4
2020-21 sequentially. Revenues of
steel companies improved (vis-à-vis
FY2020) on higher realisation and
rising demand, led by a recovery in
capital expenditure of states, auto
production, white goods production,
and construction activity.
Market drivers
Global steel demand is expected
to grow by 5-7% in CY2021. The
demand from China will remain
firm, owing to government-led
infrastructure boost, particularly
in railways and airports. Globally, a
lower base and active initiatives for
economic revival by governments
will aid recovery of steel demand to
5-7% in CY2021.
FY2022 will see a steel demand
growth of 10-12% with infrastructure
Steel
Overview
India’s steel industry saw a sharp
demand plunge after lockdowns
disrupted economic activities
globally. As it was gradually lifted,
< BACK TO CONTENTS
and housing as key drivers. The
Union Budget 2021-22 provides a
major boost to the infrastructure
sector with high focus on developing
highways and economic corridors.
Some of the flagship corridors
and important projects would see
considerable activity from 2021-
24 and is expected to create major
steel demand in the country for the
next 3-4 years. The robust demand
forecast will aid domestic producers
in increasing their capacity utilisation
and expediting growth projects.
Infrastructure, which accounts for
25-30% of domestic demand, will see
the government push to steer the
economy back with expectations of
10-12% growth next year. However,
a large part of this would be on the
back of ongoing projects as new
awarding remains lukewarm.
Auto production is expected to
revive next year with forecasts
of double-digit growth. This shall
enable around 11% growth in
FY2022, even as volumes remain
lower than FY2019 levels, implying a
~5% CAGR.
Products and customers
Vedanta completed the acquisition
of Electrosteel Steels Limited (ESL),
along with its integrated steel plant
on June 4, 2018. ESL primarily caters
to the construction, infrastructure,
and automotive sectors in India,
with its wire rod, TMT, and DI pipe
products.
this period, amid a weak economic
environment.
On the supply side in 2021, Chinese
smelters remain strong, and copper
commenced the year on a positive
note with prices rallying to hit
their highest level in eight years in
early January. Due to the easing of
lockdown restrictions around the
world, an increasing trend is observed
in smelter production in 2021.
Our ability to take advantage of
these opportunities is largely
dependent on the re-opening of our
smelter at Tuticorin.
Products and customers
Refined copper is predominantly
used in the manufacture of cables,
transformers and motors as well as
castings and alloy-based products.
The Tuticorin smelter closure
affected our production in India.
We have produced 101 kt of cathode
in FY2021.
On the supply side, India faced a
crunch in the availability of refined
copper due to Vedanta’s Tuticorin
smelter closure.
Market drivers
Copper consumption in India and
China is expected to increase by 19%
and 0.9%, respectively in CY2021.
With manufacturing industries
in both the countries ramping up
production volumes following the
easing of lockdown restrictions,
copper consumption is set to rise.
India’s biggest consumption engine
continues to be its burgeoning
population (which is predominantly
young) with growing disposable
income, fast urbanisation, and
availability of a wide range of
financial services to the last-mile
citizen. Growing electric vehicles
market supported by government
measures will further drive copper
consumption.
Copper demand fundamentals in
the last quarter of CY2020 were
bolstered by developments around
the vaccine rollout. On a positive
note, manufacturing activity
demonstrated resilience during
Copper
Overview
COVID-19 triggered a shutdown of
copper mines in 2020, disrupting
global production. The International
Copper Study Group (ICSG) estimates
that mine production contracted by
1% in the first nine months of 2020.
This is because mine supply is largely
concentrated in Latin America, a
region hard-hit by the pandemic.
Despite temporary shutdowns
copper prices recovered gradually
and in Q4FY2021, three-month
copper futures on the LME touched
US$8,238 per tonne. Although
a rebound in the US dollar has
dented copper’s price rise, it
enjoyed an explosive first week
in 2021, as investors seemed
optimistic about a vaccine-powered
global economic recovery.
122
123
Employee tagging wire rods, ESL Plant
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
< BACK TO CONTENTS
Finance review
Executive summary:
We had a strong operational and financial performance in
FY2021 amidst the challenges faced due to the pandemic.
The Company continues to focus on controllable
factors such as resetting cost base through diverse cost
optimisation initiatives, disciplined capital investments,
working capital initiatives, marketing initiatives and
volume with strong control measures to ensure safe
operations across businesses within framed government
and corporate guidelines amidst the pandemic.
In FY2021, we recorded an EBITDA of `27,341 crore, 30%
higher y-o-y and robust adjusted EBITDA margin of 36%.
(FY2020: `21,061 crore, margin 29%).
Higher sales volumes resulted in increase in EBITDA
by `907 crore, driven by higher volumes at Zinc India,
Iron ore, Aluminium and Steel business. However, this
was partially offset by lower sales volume at Oil & Gas
business and lower power sales at TSPL.
Market factors resulted in increase in EBITDA by `4,917
crore compared to FY2020. This was primarily driven
by increase in the commodity prices, softening of input
commodity prices, rupee depreciation, partially offset
by lower brent realisation at Oil & Gas business and lower
capex recovery at Oil & Gas business.
Consolidated EBITDA
Zinc
-India
-International
Oil & Gas
Aluminium
Power
Iron Ore
Steel
Copper India
Others
Total EBITDA
EBITDA for FY2020
Market and regulatory: ` 4,917 crore
a) Prices, premium / discount
b) Direct raw material inflation
c) Foreign exchange movement
d) Profit petroleum to GOI at Oil & Gas
e) Regulatory changes
Operational: ` 1,364 crore
f) Volume
g) Cost and marketing
h) Others
EBITDA for FY2021
124
Gross debt as on 31 March 2021 was `57,028 crore, a
decrease of `2,159 crore since 31 March 2020. This
was mainly due to the repayment of debt at Vedanta
Standalone, partially offset by increase in borrowing at
Zinc India business and BALCO.
Net debt as on 31 March 2021 was `24,414 crore, increased
by `2,988 crore since 31 March 2010 (FY2020: `21,426
crore), primarily driven by dividend payment during the
year, inter-company loan(ICL) to VRL, increase in working
capital, partially offset by strong cash flow from operations.
The balance sheet of Vedanta Limited continues to
remain strong with cash and cash equivalents, of `32,614
crore and Net Debt to EBITDA ratio at 0.9x (FY2020: 1.0x)
Consolidated EBITDA
EBITDA increased by 30% in FY2021 to `27,341 crore. This
was mainly driven by higher commodity prices, higher sales
realisation from Iron ore and Steel business, increased
volumes at Zinc India and Aluminium business, lower cost
of production at Zinc, Aluminium and Oil & Gas business,
and rupee depreciation, partially offset by lower brent
realisation and lower cost recovery at Oil & Gas business.
FY2021
12,431
11,620
811
3,206
7,751
1,407
1,804
871
(177)
47
27,341
(` crore, unless stated)
% change
FY2020
37
9,094
33
8,714
-
380
(56)
7,271
-
1,998
(15)
1,649
-
878
48
588
-
(300)
-
(118)
30
21,061
(` crore unless stated)
21,061
1,072
1,646
2,091
(636)
744
907
1,243
(786)
27,341
a) Prices, premium/discount
Commodity price fluctuations have a significant impact on the Group’s business. During FY2021, we saw a net
positive impact of `1,072 crore on EBITDA due to commodity price fluctuations.
Zinc, lead and silver: Average zinc LME prices during FY2021 marginally increased to US$2,422 per tonne, up 1%
y-o-y; lead LME prices decreased to US$1,868 per tonne, down 4% y-o-y; and silver prices increased to US$22.9
per ounce, up 38% y-o-y. The cumulative impact of these price fluctuations increased EBITDA by `1,243 crore.
Aluminium: Average aluminium LME prices increased to US$1,805 per tonne in FY2021, up 3% y o y, this had a
positive impact of `923 crore on EBITDA.
Oil & Gas: The average Brent price for the year was US$44.3 per barrel, lower by 27% compared with US$60.9 per
barrel during FY2020. This had negative impact on EBITDA by `1,632 crore.
b) Direct raw material inflation
Prices of key raw materials such as imported alumina, thermal coal, carbon and caustic have reduced significantly
in FY2021, improving EBITDA by `1,646 crore, mainly at Aluminium and Zinc business.
c) Foreign exchange fluctuation
INR and SA Rand depreciated against the US dollar during FY2021. Stronger dollar is favourable to the Group’s
EBITDA, given the local cost base and predominantly US dollar-linked pricing. The favourable currency
movements positively impacted EBITDA by `2,091 crore.
Key exchange rates against the US dollar:
Indian rupee
South African rand
Average year ended
31 March 2021
74.11
16.37
Average year ended
31 March 2020
70.86
14.78
% change
4.6
10.8
As at
31 March 2021
73.30
14.83
As at
31 March 2020
74.81
17.89
d) Profit petroleum to GOI at Oil & Gas
The profit petroleum outflow to the Government of
India (GOI), as per the production sharing contract
(PSC), increased by `636 crore. The increase in
outflow was primarily due to the lower recovery of
capital expenditure in FY2021.
e) Regulatory
During FY2021, changes in regulatory levies such as
Renewable Power Obligation etc. had a cumulative
positive impact on the Group EBITDA of `744 crore.
f) Volumes
Higher volume led to increase in EBITDA by
`907 crore by following businesses:
Zinc India (positive `1,170 crore)
Higher zinc & lead sales (higher by 6% and 20%
respectively) & higher sliver sales (~25%), had a
cumulative positive impact on EBITDA of
`1,170 crore.
Oil & Gas (negative `499 crore)
Oil & Gas business achieved WI sales of
40.27 mmboe, down by 8% y-o-y. This had negative
impact on EBITDA of `499 crore.
Iron Ore (positive `251 crore)
Sales volumes at iron ore business increased
significantly having a positive impact on EBITDA of
`251 crore.
Steel business (positive `28 crore)
ESL achieved metal sales of 1,231 KT, up 4% y-o-y.
This sales volume increase had a positive impact on
EBITDA of `28 crore.
Aluminium (positive `108 crore)
In FY2021, the Aluminium business achieved metal
sales of 1.96 million tonnes, up 2% y-o-y. This volume
increase had a positive impact on EBITDA of
`108 crore.
g) Cost and marketing
Improved costs resulted in an increase in EBITDA by
`1,857 crore over FY2021, primarily due to improved
cost at Aluminium business driven by better coal rate
and mix and lower alumina imports. This was partially
offset by lower premia realizations at Aluminium and
Zinc business, impacting EBITDA negatively by
`566 crore.
125
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
h) Others
This primarily includes the impact of past exploration cost recovery at Oil & Gas business during FY2020 and
change in Profit Petroleum (PP) tranche partially offset by higher power EBITDA, inventory and foreign exchange
adjustments, impacting EBITDA negatively by `786 crore.
Income statement
Particulars
Net Sales/Income from Operations
Other Operating Income
EBITDA
EBITDA margin1 (%)
Finance Cost
Investment Income
Exchange Gain /(Loss)
Profit before Depreciation and Taxes
Depreciation and Amortisation
Profit before Exceptional items
Exceptional items2 : credit/(expense)
Taxes3
Profit after Taxes
Profit after Taxes (before Exceptional Items)
Minority interest
Attributable PAT after exceptional items
Attributable PAT (before exceptional items)
Basic earnings per share (`/share)
Basic EPS before exceptional items (`/share)
Exchange Rate (`/US$) – Average
Exchange Rate (`/US$) – Closing
1. Excludes custom smelting at Copper India and Zinc India Operations
2. Exceptional Items gross of tax
3. Tax includes tax gain on exceptional items of `54 crore on special items in FY2021 (FY2020: tax gain of `6,521 crore)
4. Previous period figures have been regrouped/rearranged wherever necessary to conform to current period presentation
FY 2021
86,863
1,158
27,341
36%
5,210
3,269
129
25,528
7,638
17,891
(678)
2,180
15,032
15,557
3,429
11,602
12,151
31.32
74.11
74.81
10.79
32.80
73.30
70.86
(` crore, unless stated)
% Change
FY 2020
4
83,545
28
902
30
21,061
-
29%
5
4,977
34
2,443
-
(306)
40
18,220
(16)
9,093
96
9,127
(96)
(17,386)
-
(3,516)
-
(4,743)
-
6,122
79
1,920
-
(6,664)
-
3,995
-
(18.00)
-
5
(2)
REVENUE
Revenue for the year was `86,863 crore, higher 4%
y-o-y. This was driven by higher commodity prices,
higher volumes at Zinc India, Copper, Iron Ore and
Aluminium business, inclusion of FACOR in FY2021, rupee
depreciation, partially offset by lower power sales at
TSPL, lower volume at Oil & Gas, Skorpion, and lower cost
recovery in FY2021.
EBITDA AND EBITDA MARGIN
EBITDA for the year was `27,341 crore, 30% higher y-o-y.
This was mainly on account of higher commodity prices,
higher sales realisation at Steel and Iron ore business,
higher volumes at Zinc India and Aluminium business,
aided by cost reduction at Zinc, Aluminium and Oil & Gas
business, higher RPO MTM gains at Aluminium business
and rupee depreciation. This was partially offset by lower
brent realisation and lower cost recovery in Oil & Gas
business.
We maintained a robust adjusted EBITDA margin1 of 36%
for the year (FY2020: 29%)
< BACK TO CONTENTS
DEPRECIATION AND AMORTISATIONS
Depreciation for the year was `7,638 crore compared to
`9,093 crore in FY2020, lower by 16%, primarily on account
of lower charge at Oil & Gas business due to impairment
of asset in Q4 FY2020, and Skorpion mine put under
maintenance and care at the start of the financial year.
NET INTEREST
The blended cost of borrowings was 7.7% for FY2021
compared to with 7.9% in FY2020.
Finance cost for FY2021 was `5,210 crore, 5% higher
y-o-y compared to `4,977 crore in FY2020 mainly on
account of increase in average borrowing, decrease
in interest capitalisation at Aluminium and Oil & Gas
business, partially offset by lower blended cost of
borrowings.
Investment income for FY2021 stood at `3,269 crore, 34%
higher y-o-y compared to `2,443 crore in FY 2020.This was
mainly due to interest on the inter-company loan to VRL,
partially offset by decrease in average investments and
mark-to-market (MTM) movement at Zinc India.
EXCEPTIONAL ITEMS
The exceptional items for FY2021 was at `(678) crore,
mainly on account of loss relating to certain items of
capital work-in-progress (CWIP) at the Aluminium and
Steel business, provision on receivables subject to
litigation, revision of Renewable Purchase Obligation
(RPO) pursuant to the Odisha Electricity Regulatory
Commission notification, compliance cost for
environment clearance at Steel business and settlement
of structured investment.
[For more information, refer note [34] set out in P&L
notes of the financial statement on exceptional items].
TAXATION
Tax expense for FY2021 stood at `2,180 crore (FY2020:
credit of c. `3,516 crore). The normalised ETR for FY2021
is at 27% (excluding tax on exceptional items, tax on intra
Group dividend and deferred tax asset of `3,111 crore
recognised on losses in ESL) compared to 34% in FY2020,
majorly on account of change in profit mix.
ATTRIBUTABLE PROFIT AFTER TAX
(BEFORE EXCEPTIONAL ITEMS)
Attributable PAT before exceptional items was
`12,151 crore in FY2021 compared to `3,995 in FY2020.
EARNINGS PER SHARE
Earnings per share before exceptional items for FY2021
were `32.80 per share as compared to `10.79 per share in
FY2020.
DIVIDEND
Board has declared interim dividend of `9.50 per share
during the year.
SHAREHOLDERS FUND
Total shareholders fund as on 31 March 2021 aggregated
to `62,277 crore as compared to `54,635 crore as of
31 March 2020. This was primarily net profit attributable
to equity holders earned during the year partially offset
by dividend paid during the year.
NET FIXED ASSETS
The net fixed assets as on 31 March 2021 were
`106,784 crore. This comprises of `13,880 crore as
capital work-in-progress as on 31 March 2021.
BALANCE SHEET
Our financial position remains strong with cash and liquid
investments of `32,614 crore.
The Company follows a Board approved investment
policy and invests in high quality debt instruments with
mutual funds, bonds and fixed deposits with banks. The
portfolio is rated by CRISIL which has assigned a rating of
“Tier I” (meaning highest safety) to our portfolio Further,
the Company has undrawn fund based committed
facilities of `7,800 crore as on 31 March 2021.
Gross debt as on 31 March 2021 was `57,028 crore, a
decrease of `2,159 crore since 31 March 2020. This
was mainly due to the repayment of debt at Vedanta
Standalone partially offset by increase in borrowing at
Zinc India business and BALCO.
Gross Debt comprises term debt of `53,000 crore and
short-term working capital loans of `4,000 crore. The
loan in INR currency is 89% and balance 11% in foreign
currency. Average debt maturity of term debt is
c. 3.2 years as of 31 March 2021.
CRISIL and India Ratings revised the rating of Vedanta
from AA to AA- with Stable outlook in FY2021.
126
127
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Zinc India
< BACK TO CONTENTS
OCCUPATIONAL HEALTH & SAFETY
ENVIRONMENT
Zinc India was certified as 2.41x water
positive company, defined as a ratio
of Water Credit and Water Debit. The
assessment was carried by DNV GL, a
globally renowned risk management
and quality assurance company.
Initiatives like rainwater harvesting,
recharge to ground water and use of
treated sewage water have enabled
us to achieve this distinction.
Zinc India management has finalised
Sustainability Goals 2025 by
undertaking the following targets:
Zero work-related fatalities and
50% reduction in TRIFR
Achieve 0.5 million tonnes of
CO2e GHG emission savings in
our operations from the base year
2017
Lost time injury frequency rate
(LTIFR) for the last quarter was
0.92 vis-à-vis 1.23 in Q4FY21,
driven by several safety awareness,
investigation and prevention
initiatives. Compared to a year ago,
the number of LTIs declined from
18 to 13 in the fourth quarter. LTIFR
for the year was 0.98 (total 51 LTIs).
There has been greater management
focus to bring a cultural shift via felt
leadership programmes, safety town
halls, enabling tools such as safety
whistle-blower as well as reward and
recognition for near-miss reporting.
In view of the COVID-19 health
emergency, an advisory was issued
for the precautionary measures,
along with awareness campaigns
and drive for disinfecting facilities
across the Company. The Company’s
operations were halted during the
lockdown and employees were asked
to work from home barring some
employees, who attended call for
duty to keep production assets safe.
To ensure business continuity, a
committee of COVID-19 Response
‘War Room’ was organised to identify
and implement urgent business
decisions. We also engaged the
Self-Help Group (SHG) women in our
communities to stitch and distribute
cloth masks among the villagers,
police and administration officials.
Our teams also worked with the civil
administration to ensure that food
reached the vulnerable population.
During the year we commissioned
an underground Occupational
Health Centre at Rampura Agucha
Mine which significantly improves
the response time in emergency
cases. Senior management visits
to shop floors and Gemba walks at
contractor operated sites reiterated
the focus on felt leadership in the
organisation. ‘Sameeksha’ was
conducted with six business partners
to discuss the details of their serious
LTI with CEO, HZL chairing the
session.
THE YEAR IN BRIEF
Our mine production gradually improved during the year with ore production for the full year, up by 7% y-o-y,
to deliver a record production of 15.5 million tonnes. This was supported by robust production growth at
Zawar mines and Rampura Agucha mine, up by 21% and 9%, respectively. Our operations were halted on
account of the pandemic-induced lockdown from 22 March 2020 onwards, impacting 3-4 weeks of equivalent
production. Mined metal production was up by 6% y-o-y to 972 kt, primarily on account of higher ore
production, with overall grades remaining at the same levels.
128
< BACK TO CONTENTS
Become a 5x water positive
company and achieve 25%
reduction in fresh-water
consumption
Achieve 3x increase in gainful
utilisation of smelting process
waste
Protecting and enhancing
biodiversity throughout the life
cycle
Positively impacting 1 million lives
through social, economic and
environmental outcomes
Inclusive and diverse workplace
with 30% diversity
100% responsible sourcing in
supply chain
HZL Facility
129
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Zinc India
Zinc India’s 22 MW solar power
project at RAM was registered under
the Gold Standard during the year.
DSC Zinc successfully commissioned
a 4,500 mtpa FPT (Freeze
Precipitation Technology) plant to
recover sodium sulphate from the
final multi-stage RO rejects which will
cater to 1/3rd of DSC Hydro smelter’s
input salt requirements to support
our circular economy goal. The CPP
Team conducted an innovative in-
house recycling of the bottom ash
to convert it into fly ash (saleable
product) improving value realisation
and lowering the environment
footprint. Zinc India’s Udaipur
Sewage Treatment Plants expanded
to 55 MLD, translating into over 90%
treatment of the city’s sewage.
Zinc India led an endorsement for
‘UNGC (United Nations Global
Compact) CEO Water Mandate’
giving our commitment towards
water stewardship and initiating our
journey to follow the six principles
laid out by UNGC. As part of our
commitment towards biodiversity
conservation, the Company is
now a member of IUCN ‘Leader for
Nature India’ initiative. HZL actively
participated in the 3rd meeting of
‘Business Leaders Group COP26’
and actively engaged in shaping
the agenda for COP26, to be held at
Glasgow (UK) in November 2021.
Our sustainability initiatives received
several endorsements during the
year including the selection in
‘Sustainability Yearbook 2021’ as
Member for the fourth consecutive
year, Supplier Engagement Rating
‘A’ received from CDP, first position
in the Asia Pacific region in metal
and mining sector in Dow Jones
Sustainability Indices and 7th
Globally and CII-ITC Corporate
Excellence Sustainability Award
2020. Zinc India (HZL) was featured
among the first Indian companies
to be featured in CDP India Annual
Report and was rated ‘A’ in Climate
Change CDP 2020. Hindustan Zinc is
the first company in India to respond
to CDP’s Forests questionnaire.
130
PRODUCTION PERFORMANCE
OPERATIONS
FY2021 FY2020
917
972
%
change
6
930
870
715
688
214
182
706
610
7
4
18
16
Production (kt)
Total mined
metal
Refinery metal
production
Refined zinc –
integrated
Refined lead –
integrated1
Production
– silver (in
tonnes)2
1. Excluding captive consumption of
6,424 tonnes in FY2021 vs. 7,088 tonnes
in FY2020.
2. Excluding captive consumption of
34.6 tonnes in FY2021 vs. 36.7 tonnes
in FY2020.
For the full-year, ore production was
up 7% y-o-y to 15.5 million tonnes on
account of strong production growth
at Rampura Agucha and Zawar
mines, which were up by 9% and
21% respectively. Zinc India’s mined
metal production for FY2021 was
971,976 tonnes compared to
917,101 tonnes in the previous year
in line with higher ore production.
For the full year, metal production
was up 7% to 930 kt in line with
higher MIC availability, while silver
production strengthened by 16% to
a record 706 mt in line with higher
lead production and better grades
at SK. These record numbers were
delivered despite losing 3-4 weeks
equivalent of production days in
the year due to COVID induced
disruptions.
Smelting Operations at Rajpura Dariba Complex
< BACK TO CONTENTS
PRICES
Particulars
Average zinc
LME cash
settlement
prices US$ per
tonne
Average lead
LME cash
settlement
prices US$ per
tonne
Average silver
prices US$/
ounce
FY2021 FY2020
2,402
2,422
%
change
1
1,868
1,952
(4)
22.9
16.5
38
LME Zinc prices averaged US$2,750
per mt in Q4FY21, up 29% y-o-y
and 5% q-o-q. Investor interests in
base metals is set to be sustained
with the roll out of vaccination
programmes globally. The recovery
in international trade has not been
uniform. In comparison to December
2020, the bulk of the growth can be
attributed to the growth of imports
and exports in China and developed
Asian nations. There was marginal
growth from the European Union and
the rest of Asia, and a modest decline
for the US and UK. Wood Mackenzie
estimates zinc LME prices to average
US$2,800 per mt in 2021.
The ongoing vaccination programmes
and relatively better manufacturing
activity are providing positive cues
to investors. As for the premiums
in South East Asia, a combination
of improving demand and smelters
directing shipments to China have
tightened the market, helping
premiums to shift to the upper end
of a US$90-110 per tonne range.
Global exchange stocks ended at 389
kt in March, marginally higher than
in February, but remain at 10 days in
terms of days of global consumption.
ZINC DEMAND – SUPPLY
CY
2019
CY
2020
CY
2021 E
13,363 12,491 13,171
Zinc Global
Balance In kt
Mine
Production
Smelter
Production
Consumption 13.924 13,228 13,755
13,601 13,731 13,938
Source: Wood Mackenzie, March STO
Last year, the largest supply changes
were attributed to Chinese mines,
primarily from Inner Mongolia,
Hunan and Sichuan. This reflects
the poor performance of the small
mine sector, where several mines
in these provinces failed to restart.
Hunan was most affected. The 2021
global mine production estimate of
Wood Mackenzie is 13.2 mt, a 5.47%
increase vis-à-vis 2020. The Chinese
spot TCs declined from US$85 in
December to US$70 in March in
favour of miners.
After hitting a low of 27.4 in April
2020, the manufacturing Purchasing
Managers Index (PMI) hit 54.6 in
September and has averaged 57
in the four months through to
February 2021. This is pointing to
a robust pace of expansion for the
country’s manufacturing sector. The
strength of the rebound in activity
has driven a rapid recovery in the
HZL Captive Power Plant Control Room
Indian steel production with crude
steel production hitting 9.7 mt in
December, its highest since the
record high of just over 10 Mt in March
2019. With India’s economic growth
entering positive territory, the strong
performance of India’s steel sector
seen in the latter part of 2020 should
be sustained into 2021.
UNIT COSTS
Particulars
Unit costs
(US$ per tonne)
Zinc(including
royalty)
Zinc (excluding
royalty)
FY2021 FY2020
%
change
1,286 1,371
954 1,047
(6)
(9)
For the full year, zinc COP excluding
royalty was US$954, lower by 9%
y-o-y. The COP decrease reflects
lower spend on consumables,
lower coal and coke consumption,
131
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Zinc India
digitisation led operational
efficiency, which was partly offset by
higher R&M expense, other mining
and manufacturing expenses.
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
21
33
-
FY2021 FY2020
21,932 18,159
8,714
11,620
53% 48%
Particulars
Revenue
EBITDA
EBITDA margin
(%)
Revenue from operations for the year
was `21,932 crore, up 21% y-o-y,
primarily on account of higher metal
production partly offset by lower
sulphuric acid and lower domestic
sales of zinc.
EBITDA in FY2021 increased to
`11,620 crore, up 33% y-o-y. The
increase was primarily driven by
higher revenue and lower cost of
production.
PROJECTS
We commissioned a 10 MLD STP
plant in Udaipur and another 5 MLD
STP (Sewage Treatment Plant) is in
its last leg of commissioning, which
will take the total STP capacity set
up by us to 60 MLD. This will treat
almost the entire sewage of Udaipur
city and the recycled water will be
used by our plants, significantly
reducing our freshwater intake.
During the year, our graphite
floatation system was commissioned
at Mill 3 of Sindesar Khurd Mines,
which will enhance the smelter
throughput and bolster recovery.
During the quarter, backfill plants
were commissioned at Zawarmala
and Mochia mines. These plants will
derisk operations and provide an
opportunity to mine left-out high-
grade ore in pillars. On similar lines,
we have also commenced activities
for a combined paste-fill and dry
tailing plant at Rajpura Dariba. This
will help increase ore production
from 1.2 mtpa to 2 mtpa; also
facilitating additional utilisation of
tails by ~20% for back filling and will
reduce stope turnaround time.
The development of North Decline
(ND1) was completed at Rampura
Agucha (RA) mine. This improves
the accessibility of the shaft section,
alternate emergency evacuation,
ease in mine equipment deployment
at lower mine levels, face charging
with emulsion explosives, face drilling
with long feed jumbo, and so on.
We have commenced operations in
RKD circuit (component of overall
Fumer project) to treat Raw Zinc
Oxide (RZO). COVID-19 restrictions
including stringent visa guidelines
for Chinese nationals continued
during the year, which resulted in
delay in commissioning of Fumer
plant at Chanderiya. We are following
up with government authorities to
find a solution. Two back-fill plants
in Zawar were also commissioned
during the year.
< BACK TO CONTENTS
Cell House at Dariba Smelting Complex
Our key strategic priorities include:
Further ramp-up of underground
mines towards their design
capacity, deliver increased silver
output in line with communicated
strategy
Sustain cost of production
to below US$1,000 per tonne
through efficient ore hauling,
higher volume and grades and
incremental productivity through
ongoing efforts in automation and
digitisation
Disciplined capital investments in
minor metal recovery to enhance
profitability
Increase R&R through higher
exploration activity and new
mining tenements, as well as
upgradation of resource to
reserve
EXPLORATION
The Company has put in place an
aggressive exploration programme
focusing on delineating and
upgrading Reserves and Resources
(R&R) within its licence areas.
Technology adoption and innovation
play a key role in enhancing
exploration success.
The Company’s deposits remain
‘open’ and exploration identified a
number of new targets for mining
leases with the potential to increase
R&R over the next 12 months. Across
all the sites, the Company increased
its surface drilling to assist in
upgrading resources to reserves.
In line with previous years, the
mineral resource is reported on an
exclusive basis to the Ore Reserve
and all statements have been
independently audited by SRK (UK).
Total Ore Reserves increased
significantly from 114.7 million
tonnes at the end of FY2020 to
150.3 million tonnes at the end of
FY2021 due to heightened focus
on resource to reserve conversion
during the year. Exclusive Mineral
Resource totalled 297.6 million
tonnes. Total R&R increased to 448
million tonnes as we added more
resource than that was consumed
during the year.
Total contained metal in Ore
Reserves is 9.16 million tonnes of
zinc, 2.55 million tonnes of lead and
295.5 million ounces of silver and
the Mineral Resource contains 14.9
million tonnes of zinc, 6.3 million
tonnes of lead and 618.7 million
ounces of silver. At current mining
rates, the R&R underpins metal
production for more than 25 years.
STRATEGIC PRIORITIES &
OUTLOOK
Our primary objective remains to
concentrate on enhancing overall
output, cost efficiency of our
operations and disciplined capital
expenditure. While the current
economic environment remains
uncertain, our goals over the
medium term are unchanged.
Maintenance work by our diverse workforce at Rajpura Dariba Mine
132
133
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Zinc International
< BACK TO CONTENTS
SAFETY
OCCUPATIONAL HEALTH
At Vedanta Zinc International, we
take the health and safety of our
employees and stakeholders very
seriously and we remain committed
to communicating timely and
transparently to all stakeholders.
Since the outbreak of the pandemic,
we have recorded 227 positive cases,
222 recoveries, 3 active cases and
2 deceased. We have put stringent
protocols to mitigate the spread
and we have rolled out awareness
initiatives to assist communities in
which we operate.
Gamsberg mine recorded a slope
failure in the South Pit on 17
November 2020. One fatality was
recorded and efforts to locate
the one missing employee of
our business partner remains a
priority. A dedicated team has
been constituted to undertake
the recovery efforts. Gamsberg
LTIFR improved from 1.10 in
FY2020 to 1.08 in FY2021.
Black Mountain Mine had a fatality
free year and saw a reduction
in high potential risk incidents.
Employee engagement is
integral to our safety strategy
and both Visible Felt Leadership
Interactions and Planned Task
Observations are conducted
regularly by leaders and front-line
supervisors to coach and address
behavioural issues.
Both Black Mountain and
Gamsberg Mines are embarking
on a Critical Control Management
programme to ensure that all
the fatal risk protocols are in
place and understood by all the
employees.
Leadership remains key to
the success of our safety
improvement programme.
Our leaders have recently
undergone legal compliance
training and plans are in place
to provide risk-management
training and improve risk
management interventions
and decision-making.
0.65 m3/tonne
Water consumption at
Gamsberg, Zinc International
THE YEAR IN BRIEF
During FY2021, Zinc International continued to ramp up production from its flagship project Gamsberg mine
and achieved production of 145 kt. Several best demonstrated performances on throughput, milled tonnes and
improved recoveries were achieved in Q4FY21.
Black Mountain continued to have a stable production of 58 kt, slightly lower than FY2020 due to lower head
grades and mining challenges due to unplanned equipment breakdowns. A new product line of recovering
magnetite from tailings was established in FY2021.
In spite of COVID-19, robust mitigation measures were put in place to ensure minimal impact on production.
Skorpion Zinc has been under Care and Maintenance since the start of May 2020, following cessation of mining
activities due to geotechnical instabilities in the open pit. Activities to restart the mine are progressing well.
Significant reduction in cost was achieved in FY2021 through increased volumes, cost containment measures,
consumption efficiencies and exchange rate depreciation.
134
Airborne particulate management
remains a key focus in reducing
lead and silica dust exposures
of employees. Black Mountain
Mine has reduced blood lead
withdrawals from 12 in FY2020
to 6 in FY2021. As a part of our
Employee Wellness Programme,
we are focusing on increased
participation of employees and
communities in VCT for AIDS /
HIV, blood donation and wellness;
2,172 employees were screened
for tuberculosis during the year.
Gamsberg facility, Zinc International
135
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Zinc International
ENVIRONMENT
OPERATIONS
Gamsberg Nursery
Gamsberg successfully reduced
water consumption in the plant
to 0.65 m3/tonne and reduced
the levels of the Tailings Storage
Facility return water dam to prevent
future overflows from the dam.
During a recent ISO 14001; 2015
recertification, audit Black Mountain
Mining successfully retained the
certification with no major
non-conformances.
The draft Gamsberg Nature Reserve
Strategic Management Plan has been
prepared and submitted for public
comments. The final Management
Plan will be submitted to MEC for
approval. BMM is in negotiations
to secure additional farms to be
included in the Gamsberg Nature
Reserve to ensure compliance to the
Biodiversity Offset Agreement.
PRODUCTION PERFORMANCE
Particulars
Total
production (kt)
Production –
mined metal
(kt)
BMM
Gamsberg
Refined metal
Skorpion
FY2021 FY2020
240
203
%
change
(16)
58
145
-*
66
108
67
(12)
34
-
* Skorpion produced 0.6 kt in April 2020
before moving into Care and Maintenance
for the rest of the year
During FY2021, our total production
stood at 203,000 tonnes, 16%
lower y-o-y. This was primarily due
to Skorpion Zinc going into Care
and Maintenance, and BMM mining
challenges which were partly offset
by higher production at Gamsberg.
At BMM, production was 58,000
tonnes, 12% lower y-o-y. This was
mainly due to lower grade of lead
(2.3% vs 2.9%) and hence lead lower
recoveries (84.1% vs 85.6%) and 6%
lower throughput resulting from
lower mining performance.
Gamsberg’s production was at
1,45,000 tonnes as the operation
continues to ramp up with improved
performance every quarter – Q1
FY2021 at 25,000 tonnes, Q2 at
35,000 tonnes, Q3 at 43,000 tonnes
and Q4 at 41,000 tonnes (Q4 FY21
performance slightly impacted
by lower mine grades). Our plant
operations were partially impacted
in November due to the slope failure
incident. While mining only started
in phases in December and January
2021, plant continued to run on
healthy ROM stockpile.
Stockpile at Gamsberg, VZI
At Skorpion Zinc, engagement
with technical experts to explore
opportunities of safely extracting
the remaining ore is ongoing. The
pit optimisation work is complete.
The business is currently evaluating
options to restart mining. Further
there is significant progress made
to make the Skorpion Refinery
Conversion Project economically
feasible. Previously completed
feasibility study is being updated.
We target to start the on-ground
execution by H1 FY2022.
At both BMM and Gamsberg,
production was also slightly
impacted by the COVD-19 lockdown
during Q1FY21.
UNIT COSTS
Particulars
Zinc (US$ per
tonne) unit cost
FY2021 FY2020
1,307 1,665
%
change
(22)
The unit cost of production
decreased by 22% to US$1,307 per
tonne, from US$1,665 per tonne in
the previous year. This was mainly
driven by the Company’s strong
focus to reduce the cost, along
with reduction through higher
production at Gamsberg, local
currency depreciation, optimising
consumables usage, higher copper
credit offset by higher TCRCs and
annual inflation.
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
(13)
-
-
FY2021 FY2020
2,729 3,128
380
811
30% 12%
Particulars
Revenue
EBITDA
EBITDA margin
During the year, revenue decreased
by 13% to `2,729 crore, driven by
lower volumes compared to FY2020
due to Skorpion Zinc going under
Care and Maintenance, partially
offset by higher price realisations.
EBITDA increased significantly
to `811 crore, from `380 crore in
FY2020 mainly on account of higher
price realisation and improved cost.
< BACK TO CONTENTS
PROJECTS
Refinery conversion – A substantial
progress has been made on Skorpion
Zinc Refinery conversion project
with the FEED completion, feasibility
study, tendering activities and
techno-commercial adjudication.
All regulatory approval is in place to
start project execution. Previously
completed feasibility study is being
updated. With power tariffs being
very critical for the viability of the
project, discussions are ongoing
with the state power utility and the
option of renewable power is also
being explored. We can start the on-
ground execution by H1 2022 subject
to the confirmation of power tariff
and approval from the Board.
Swartberg Phase 2 – Based on
the completed feasibility study,
the finalised mine design and
environmental authorisation has
been received in Q3FY21. Based on
the proposed integration schedule
with BMM, the underground
operations project is planned to be
executed in FY2023.
Gamsberg Phase 2 - 54 mt reserves
have been added post completion
of feasibility study for expansion
which can result in additional 200
ktpa MIC production over and above
current production. The mine design
and the new reserve statement was
completed with the Resource to
Reserve conversion as scheduled.
The project is currently split into two
distinctive sections, one focused on
increasing the mining to 9 mtpa and
the second focused on construction
of a duplicate concentrator plant,
effectively doubling the capacity.
Gamsberg Smelter – We have
received the environmental approval
for bulk water pipeline construction
and outcome of ESIA for Gamsberg
Smelter is also expected in April
2021. The SEZ application process
has progressed well. We are engaging
with the Government of South Africa
on critical success factors like SEZ,
power price, sulphuric acid offtake,
logistics infrastructure and other
regulatory approvals.
Monitoring site using state of the art technology
Black Mountain Magnetite project –
This is a project to recover iron ore/
magnetite from the BMM tailings.
The feasibility was completed and
pilot plant of 60 ktpa capacity was
started in Q4FY21. To fast track the
project and take advantage of the
current favourable market conditions
a quick start modular 0.7 mtpa plant
was decided, based on treating
current fresh tailings. This project
will be put up for approval to start the
execution in H1 FY2022 with target
of completion by end of FY2022.
EXPLORATION
Certified Mineral Reserves and
Resources at Zinc International
increased by 8% to 566.4 mt
containing 30.3 mt of metal. Gross
additions to reserves and resources,
after depletion, amounted to 41.3 mt
of ore and 1.8 mt of metal. Despite
depletion, reserve levels were
successfully maintained at the same
level as 2020, and amounted to
139.7 mt containing 8.3 mt of metal.
The most significant contributor to
the addition of metal in resources
was the declaration of a maiden
resource at Gamsberg South
(23.2 mt @ 7.1% Zn and 0.6% Pb).
STRATEGIC PRIORITIES & OUTLOOK
Zinc International continues to
remain focused to improve its
production by sweating its current
assets beyond its design capacity,
debottlenecking the existing capacity,
and adding capacity through growth
projects.
Our priority is to ramp up the
performance of our Gamsberg Plant at
designed capacity and simultaneously
develop the debottlenecking plan to
increase plant capacity by 10% to
4.4 mt ore throughput. Likewise, BMM
continues to deliver stable production
performance and the focus is to
debottleneck its ore volumes from
1.6 mt to 1.8 mt.
Skorpion is expected to remain in ‘Care
and Maintenance’ for H1 FY2022, while
the management is assessing feasible
and safe mining methods to extract
ore from pit 112. Zinc International
continues to drive the cost reduction
programme to place Gamsberg
operations on the 1st quartile of global
cost curve with the production cost
less than US$1,000 per tonne.
Additionally, core growth strategic
priorities include:
Complete approval process and
commence project activities of
Skorpion Refinery Conversion
Project and Magnetite Project in
FY2022
Continue to improvise business
case of Gamsberg Phase II and
Gamsberg Smelter Project through
government intervention, capex
and opex reduction
136
137
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Oil & Gas
< BACK TO CONTENTS
< BACK TO CONTENTS
Financial statements
OCCUPATIONAL HEALTH
&SAFETY
There are six lost time injuries
(LTIs) in FY2021. The frequency
rate stood at 0.16 per million-
man hours (FY2020: 0.3 per
million-man hours) amidst
increased development activities.
Unfortunately, there was also
a fatality in one of the projects
during the FY2021.
Our focus remains on
strengthening our safety
philosophy and management
systems. We were recognised
with awards conferred by
external bodies:
Leaders Award in
Sustainability 4.0 Award 2020
jointly instituted by Frost &
Sullivan and TERI under Mega
Large Business, Process
Sector
‘Sword of Honour’ and ‘5 Star’
by British Safety Council for
excellence in HSE Management
for Pipeline Operation
CII National Award for Excellence
in Water Management 2020’
‘within fence’ category and
noteworthy contribution under
‘CII National Award for Excellence
in Water Management 2020’
‘beyond fence category
Cairn Oil & Gas has taken various
initiatives to prevent exposure to
COVID-19:
Awareness on COVID-19 based
on MOHFW (Ministry of Health
and Family Welfare), ICMR (Indian
Council of Medical Research) and
National Disaster Management
Guidelines
Tied up with Apollo and Mahatma
Gandhi Hospital, Jaipur for
handling of COVID patients
Established Apollo Telemedicine
Centre in Barmer and ‘Isolation /
Quarantine Accommodation’ at
camp sites
Weekly Health Awareness
Sessions by Specialists from
various prestigious hospitals
SOPs for travel, office duty,
construction & operations and
COVID-19 test requirement
Daily Health Monitoring of
Personnel on parameters -
temperature, cold and cough
Launched ‘Your Dost’, an Online
Emotional Wellness Platform
providing 24x7 guidance from
900+ experts
THE YEAR IN BRIEF
During FY2021, Oil & Gas business delivered gross operated production of 162 kboepd, lower by 6% y-o-y. This was
mainly due to delay in execution of growth projects owing to the implementation of nationwide lockdown imposed
by the Government of India to curb the spread of COVID-19 and natural reservoir decline at the MBA fields.
The decline was partially offset by the addition of wells brought online as a part of Mangala Infill, MPT Upgrade,
Aishwarya and Bhagyam Polymer and ABH. Business continues to drive all efforts towards volume growth through
capacity additions, new wells and surface facilities. During FY2021, 74 wells were hooked up across all assets.
In OALP blocks, the initial phase of seismic acquisition programme has been completed in Assam, Cambay,
Rajasthan and Offshore GS-GK region. Second phase is ongoing in Rajasthan and Cambay.
Early drilling opportunities have been identified based on reprocessing and interpretation of vintage data in
Rajasthan, Assam and Cambay regions. First well KW-2-Udip has been drilled in Rajasthan. Drilling and related
preparation activities are ongoing in Cambay and the North East.
Night view of the Mangala Processing Terminal, Barmer
138
139
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Oil & Gas
ENVIRONMENT
Our Oil & Gas business is committed
to protect the environment, minimise
resource consumption and drive
towards our goal of ‘zero discharge’.
We have secured first runner-up
position in Jury Special Mention Award
on ‘Recycling of Produced Water for
Injection Purpose’ under Sustainability
4.0 Award 2020 jointly instituted by
Frost & Sullivan and TERI.
Highlights for FY2021 are:
Recycling and reusing of produced
water resulting in reduced water
abstraction: 99.55% at Mangala,
Bhagyam and Aishwariya
Natural gas was adopted at
Raageshwari Gas Terminal for
power generation, eliminating the
flaring of gas and reduction in GHG
emissions
Waste oil disposal to registered
recyclers: 6,390 bbls in FY2021
Energy conservation by the
replacement of conventional lights
with energy-efficient lightings
(LED): ~150,000 units in FY2021
Commissioning of GEG’s at
Rajasthan North field for power
generation, reduction in GHG
emissions of ~9,200 tons of
CO2e/annum
Biodiversity Conservation:
− Conservation and proliferation
of indigenous species: ~1,500
seed balls and 10,000 saplings of
indigenous species developed at
Mangala Processing Terminal
− Carbon sequestration -
plantation in Ravva field: ~17,959
tons of CO2e
− Conservation of Fishing Cat
at Coringa Wildlife Sanctuary
at Godavari delta. MoU signed
with Andhra Pradesh Forest
Department and Wildlife
Institute of India
− Published ‘Know your Flora-A
Glimpse of Thar Ecosystem’,
capturing information about
57 local floral species (26 trees,
17 shrubs and 14 herbs) growing
in the vicinity of Rajasthan
140
PRODUCTION PERFORMANCE
Gross operated production
Rajasthan
Ravva
Cambay
Oil
Gas
Net production – working interest
Oil*
Gas
Gross operated production
Net production – working interest
Unit
Boepd
Boepd
Boepd
Boepd
Bopd
Mmscfd
Boepd
Bopd
Mmscfd
Mmboe
Mmboe
FY2021
19,177
10,329
162,104 172,971
132,599 144,260
14,232
14,479
140,353 154,677
109.8
101,706 110,459
99,709
64.5
63.3
40.4
FY2020 % change
(6)
(8)
35
(29)
(9)
19
(8)
(11)
19
(7)
(8)
88,923
76.7
59.2
37.1
130.5
* Includes net production of 441 boepd in FY2021 and 483 boepd in FY2020 from KG-ONN
block, which is operated by ONGC. Cairn holds a 49% stake.
OPERATIONS
Average gross operated production
across our assets was 6% lower
y-o-y at 162,104 boepd. The
Company’s production from the
Rajasthan block was 132,599 boepd,
8% lower y-o-y. The decrease
was primarily due to the delay in
execution of growth projects due to
COVID-19 restrictions and natural
reservoir decline at the MBA fields.
The decline was partially offset by
the addition of wells brought online
as a part of Mangala Infill, MPT
Upgrade, Aishwarya and Bhagyam
Polymer and ABH. Production from
the offshore assets, was at 29,505
boepd, 3% higher y-o-y, supported
by production from new wells drilled
through Ravva drilling campaign and
production optimisation activities.
The production details by block are
summarised below.
Rajasthan block
Gross production from the
Rajasthan block averaged 132,599
boepd, 8% lower y-o-y. This
decrease was primarily due to
the delay in execution of growth
projects due to implementation of
the nationwide lockdown imposed
by the Government of India to curb
the spread of COVID-19 and natural
reservoir decline at the MBA fields.
Ravva Offshore facility, Cairn Oil & Gas
< BACK TO CONTENTS
As part of the growth projects
in Rajasthan 248 wells have been
drilled. Of these 143 wells have been
hooked up till date.
Gas production from Raageshwari
Deep Gas (RDG) averaged 124 million
standard cubic feet per day (mmscfd)
in FY2021, with gas sales, post
captive consumption, at 96 mmscfd.
On 26 October 2018, the
Government of India, acting
through the Directorate General of
Hydrocarbons (DGH), Ministry of
Petroleum and Natural Gas, granted
its approval for a 10-year extension
of the PSC for the Rajasthan block,
RJ-ON-90/1, subject to certain
conditions, with effect from 15 May
2020. In May 2018 the single judge
had passed the order in our favour
allowing extension of Rajasthan
PSC on same terms. The GoI had
appealed against the said order
before the division bench of the
Delhi High Court. Vide order dated
26 March 2021, the High Court has
allowed the appeal of GoI against the
single judge order.
We have served notice of arbitration
on the Government of India (GoI) in
respect of the audit demand raised
by DGH based on PSC provisions.
The government has accepted it
and the arbitration tribunal stands
constituted. It is our position that
there is no liability arising under
the PSC owing to these purported
audited exceptions. The audit
exceptions do not constitute
demand and hence shall be resolved
as per the PSC provisions.
The tribunal had a first procedural
hearing on 24 October on which
Vedanta also filed its application
for interim relief. The interim relief
application was heard by the tribunal
on 15 December 2020, wherein it was
directed that the GoI should not take
any coercive action to recover the
disputed amount of audit exceptions
which is in arbitration and that during
the arbitration period, the GoI should
continue to extend the tenure of the
PSC on terms of current extension.
The GoI has challenged the said
order before the Delhi High court
which is now listed on 20 May 2021.
Further, on 23 September 2020, the
GoI filed an application for interim
relief before Delhi High Court
seeking payment of all disputed
dues. The bench has not been
inclined to pass any ex-parte orders
and the matter is now listed for
hearing on 20 May 2021.
Further to above stated letter from
GoI on 26 October 2018, in view
of pending non-finalisation of the
Addendum to PSC, the GoI granted
permission to the Oil & Gas business
to continue petroleum operations
in Rajasthan block, till the execution
of the Addendum to PSC or 30 April
2021, whichever is earlier.
Ravva block
The Ravva block produced at an
average rate of 19,177 boepd,
higher by 35% y-o-y. This was
primarily due to new wells bought
online through Ravva drilling
campaign which was successfully
completed during the year.
Cambay block
The Cambay block produced at an
average rate of 10,329 boepd, lower
by 29% y-o-y. This was primarily
due to natural field decline partially
offset by production optimisation
measures.
Cairn Facility
PRICES
Particulars
Average
Brent prices –
US$/barrel
FY2021 FY2020
60.9
44.3
%
change
(27)
Crude oil price averaged US$44.3
per barrel, compared to US$60.9 per
barrel in the previous year driven by
multiple reasons shifting the world
from the era of supply disruption to
plenty. Global economic indicators
continued to be adversely impacted
due to the COVID-19 pandemic.
Early in the year, oil prices declined
drastically as the markets struggled
with a rapidly filling storage capacity
and massive crude oil glut amid a
demand collapse caused by the virus
outbreak.
Prices continued extending gains
from the second quarter, climbing to
a six-month high as physical market
fundamentals continued to recover,
rollout of COVID-19 vaccines and the
surplus in the market eased, which
was reflected in the decline in crude
oil stocks, and recovery in refinery
operations and utilisation rates in
the major economies.
Continued efforts by OPEC to
accelerate production cuts including
voluntary adjustments and weather-
related energy crisis in the US later
in the year caused a sharp decline
in oil production. This temporarily
disrupted at least a fifth of the US
refining output, and a million barrels
of crude production led to a steady
rally in crude prices.
141
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Oil & Gas
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
(41)
(56)
-
FY2021 FY2020
7,531 12,661
3,206 7,271
43% 57%
Particulars
Revenue
EBITDA
EBITDA margin
Revenue for FY2021 was 41% lower
y-o-y at `7,531 crore (after profit
petroleum and royalty sharing with
the Government of India), owing to
fall in oil price realisation and lower
volumes. EBITDA of FY2021 was at
`3,206 crore, lower by 56% y-o-y in
line with the lower revenue.
The Rajasthan operating cost
was US$7.7 per barrel in FY2021
compared to US$8.7 per barrel in
the previous year, primarily driven
by cost optimisation initiatives and
lower maintenance activities due to
COVID-19 early in the year.
Growth projects development
The Oil & Gas business has
a robust portfolio of infill
development and enhanced
oil recovery projects to add
volumes in the near term and
manage natural field decline.
Some of key projects are:
Mangala infill, Bhagyam &
Aishwariya Enhanced oil
recovery (EOR) and FM3/5 Infill
Mangala is currently under
full field polymer injection.
In addition, to increase the
ultimate oil recovery and
support production volumes,
we are executing a 45-well infill
drilling campaign in Mangala
field. Drilling and hook up of the
45 well campaign have been
completed during FY2021.
The polymer’s success
enhanced oil recovery at
Mangala and is being replicated
at Bhagyam and Aishwariya
fields to increase recovery
rates. Drilling and hook-up
of 42 well campaign have
been completed during fiscal
year 2021. Surface facility
development for polymer
implementation has been
A.
142
completed and polymer
injection has been ramped up to
its design capacity.
Based on the success of the FM3
infill drilling campaign, Cairn
has identified opportunities to
further accelerate production
by drilling four horizontal wells
in FM3 and FM5 sands. The
project also entails drilling of
few deviated wells for FM2/3
sands and conversion of three
wells to polymer injector. The
approved field development
plan is being executed and
the drilling is expected to
commence during the first half
of the fiscal year 2022.
Tight oil and gas projects
Tight oil: Aishwariya Barmer
Hill (ABH)
Aishwariya Barmer Hill (ABH)
is the first tight oil project
to monetise the Barmer hill
potential. All 39 wells have
been drilled, of which 27 wells
are hooked up. They are being
progressively hooked up to
ramp up volumes. Surface
facility construction is
completed and commissioned.
Aishwariya Barmer hill stage
II drilling programme enabled
to establish the confidence
in reservoir understanding of
ABH. Based on the success of it,
drilling of 5 additional wells were
conceptualised and drilling is
expected to commence during
third quarter of fiscal year 2022.
Tight gas: Raageshwari deep
gas (RDG) development
Gas development in the
Raageshwari Deep Gas field
continues to be a strategic
priority. Early production facility
has been commissioned and
ramped up to its designed
capacity of 90 mmscfd.
Further construction of gas
terminal through integrated
contract is completed and
under commissioning. This shall
lead to incremental sales of
~100 mmscfd.
In order to realise the full
potential of the gas reservoir,
drilling of 42 wells is nearing
completion. 41 wells have been
drilled, of which 23 wells are
online as of 31 March 2021. They
are being progressively hooked
up to ramp up volumes.
Other projects
Surface facility upgradation
The Mangala processing
terminal facility upgradation
is nearing completion and
all the major sub-systems
of liquid handling are under
operation. Intra-field pipeline
Offshore rig, Cairn Oil & Gas
< BACK TO CONTENTS
B.
augmentation project has been
completed. The project will lead
to increasing liquid handling
capacity by 30% at the Mangala
processing terminal.
Ravva development
An integrated development
campaign which was
commenced in Q3FY20 got
completed in FY2021. Seven
well drilling programmes
resulted in ~11 kboepd of
incremental volumes from
Ravva Block.
Exploration and appraisal
Rajasthan - (BLOCK RJ-
ON-90/1)
Rajasthan exploration
The Rajasthan portfolio provide
access to multiple play types
with oil in high permeability
reservoirs, tight oil and
tight gas. We are evaluating
opportunities to drill low to
medium risk and medium to
high reward exploration wells to
build on the resource portfolio.
Tight oil appraisal
The appraisal programme of
four fields (Vijaya and Vandana,
Mangala Barmer Hill, DP and
Shakti) entails the drilling and
extended testing of 10 new
wells with multi-stage hydraulic
fracturing. Till 31 March 2021,
8 wells have been drilled.
Open Acreage Licensing Policy
(OALP)
Under the Open Acreage
Licensing Policy (OALP),
revenue-sharing contracts
have been signed for 51 blocks
located primarily in established
basins, including some optimally
close to existing infrastructure.
Full Tensor Gravity
Gradiometry™ (FTG) airborne
survey implemented to
prioritise area of hydrocarbon
prospectivity has been
completed in Assam, Cambay,
Rajasthan and Kutch region.
The exploration prospect
maturation process is
digitalised to fastrack the
decision to drill.
The initial phase of seismic
acquisition programme has
been completed in Assam,
Cambay and Offshore GS-GK
region. The second phase
is ongoing in Rajasthan and
Cambay.
Early drilling opportunities
have been identified, based on
reprocessing and interpretation
of vintage data in Rajasthan,
Assam and Cambay region.
We are planning to utilise
modular production facilities
Extended Well Test (EWT),
Quick Production Facility (QPF)
to fastrack production.
The first well KW-2 Udip has
been drilled in Rajasthan.
Drilling and related preparation
activities are ongoing in
Cambay and North East.
Employees at Cairn, Oil & Gas
STRATEGIC PRIORITIES AND
OUTLOOK
Vedanta’s Oil & Gas business has
a robust portfolio mix comprising
exploration prospects spread across
basins in India, development projects
in the prolific producing blocks and
stable operations which generate
robust cash flows.
The key priority for us is to deliver
on our commitments from our
world-class resources with
‘zero harm, zero waste and zero
discharge’:
Increase in near-term volumes by
commissioning the gas processing
terminal and surface facilities for
Aishwariya Barmer Hill
Infill projects across producing
fields to add volume in near term
Unlock the potential of the
exploration portfolio comprising
OALP and PSC blocks
Continue to operate at a low
cost-base and generate free cash
flow post-capex
143
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report
MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Aluminium
THE YEAR IN BRIEF
In FY2021, the aluminium smelters achieved India’s highest production of 1.97 million tonnes (including trial
run). It has been a remarkable year in our cost reduction journey on all operational fronts. Structural reforms and
continued focus on operational excellence, coupled with lower input commodity prices, provided us a long-term
cost advantage. Our efforts towards optimising our bauxite and coal mix and improved asset capacity utilisation
across refinery, smelters and power plants supported the cost reduction journey. We started and continued
a structural cost reduction programme called Vijaypath with focus on optimising our controllable costs and
improving our price realisation to improve profitability in a sustainable manner. The hot metal cost of production
for FY2021 stood at US$ 1,347 per tonne. We also achieved record production of 1.84 million tonnes at the alumina
refinery through continued debottlenecking.
144
< BACK TO CONTENTS
OCCUPATIONAL HEALTH
& SAFETY
We report with deep regret, two
fatalities during the year, one
at our operations in Lanjigarh
during unloading of bauxite and
another at the power plant in
BALCO. We investigated both
incidents thoroughly and shared
the lessons learned across all our
businesses.
This year, we experienced total
19 Lost Time Injuries (LTIs) at our
operations with a LTIFR of 0.27.
To enhance competencies of
our executives, engineers,
and supervisors of business
partners, we have launched the
Safety Booster programme at
our sites. We conducted safety
stand-downs across the sites to
communicate the learnings from
safety incidents and prevent
repeated future incidents. Also,
our safety leadership regularly
engages with the business
partner site in-charges and their
safety officers for their capability
development and strengthening
the culture of safety at our sites.
Our operations commenced a
monthly theme initiative where
cross-functional audits and
awareness programmes were
carried out based on one high
hazard work area each month
such as confined space, vehicle
driving and working at height.
Moreover, to sensitise our
employees towards our core
values of ‘Care’, we regularly
carry out programmes such as
‘Suraksha ki Goth’ and ’Suraksha
Charcha’.
The worldwide outbreak of
COVID-19 has not impacted
our operations in FY2021.
As part of our Corporate
Social Responsibility, our
business units worked with the
government and stakeholders,
including local community to
provide relief measures. Our
mobile health units were used for
creating awareness with a clear
emphasis on the importance of
social-distancing and maintaining
personal hygiene. Our business units
provided support to the district and
state health services in terms of
medical equipment, including hand
sanitisers, medicines, reagents and
PPEs such as surgical masks, gloves,
gowns and personnel (housekeeping
staff, security personnel, medical
personnel and so on, in addition to
the contribution to the government’s
relief fund for COVID-19).
The SHGs associated with our
facilities were involved in preparing
masks, thereby creating livelihood
while helping reduce the COVID-19
impact. Fire brigades at the facilities
have been deployed to sanitise the
premise and in the core villages near
our facilities. The facilities provide
food to migrant workers, identified
community groups, police personnel
and so on, as part of our social
responsibility initiatives.
ENVIRONMENT
Jharsuguda has recycled 14.67%
of the water used in FY2021, while
BALCO has recycled 12.49%. One
of our smelters at Jharsuguda
has achieved Specific Water
Consumption of 0.28 m3/mt of
aluminium, a benchmark in India.
There has been a significant
improvement in our water
consumption of 0.59 m3/mt
(FY2020: 0.69 m3/mt) at BALCO.
We are consistently focusing on
improving the recycled water
percentage.
The management of hazardous
waste such as spent Pot line,
aluminium dross, fly ash,
and so on are material waste
management issues for the
aluminium business. Our BALCO
and Jharsuguda units disposed
of 25,949 mt spent pot lining and
14,736 mt of aluminium dross
this year, to recyclers authorised
by respective state pollution
control boards. Our operations
were able to dispose 100% of fly
ash generated at the units. At our
Lanjigarh operations, 92% of lime
grit has been utilised in FY2021
vis-à-vis 98.4% in FY2020.
Jharsuguda facility
145
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Aluminium
PRODUCTION PERFORMANCE
ALUMINIUM SMELTERS
PRICES
Particulars
Production (kt)
Alumina –
Lanjigarh
Total
aluminium
production
Jharsuguda I
Jharsuguda II1
BALCO I
BALCO II
FY2021 FY2020
%
change
1,841
1,811
1,969
1,904
533
867
265
304
543
800
256
305
2
3
(2)
8
4
-
(1) Including trial run production of 27 kt in
FY2021 vs. nil in FY2020
ALUMINA REFINERY: LANJIGARH
At Lanjigarh, production was 2%
higher y-o-y at 1.84 million tonnes,
primarily through continued plant
debottlenecking and improved
capacity utilisation.
We ended the year with production
of 1.97 million tonnes (including
trial run). Our smelter at BALCO
continued to show consistent
performance. Jharsuguda smelter
ramped-up its production from
1.3 mtpa in FY2020 to 1.4 mtpa in
FY2021, 4% up y-o-y.
COAL SECURITY
We continue to focus on the long-
term security of our coal supply
at competitive prices. We added
Jamkhani and Radhikapur (West) coal
mines through competitive bidding
process by GOI. The Radhikapur
Coal Block has a capacity of 6 mtpa,
as per current approved mine plan
and Jamkhani coal block is currently
rated at 2.6 mtpa. These acquisitions
will substantially improve our coal
security. We also look forward to
continuing our participation in
linkage coal auctions and secure coal
at competitive rates.
Casting process at Jharsuguda facility
FY2021 FY2020
1,749
1,805
%
change
3
Particulars
Average
LME cash
settlement
prices (US$ per
tonne)
Average LME prices for aluminium
in FY2021 stood at US$ 1,805
per tonne, 3% higher y-o-y. LME
prices were bearish for the first two
quarters due to pandemic-induced
disruption in the global economic
activity and seemed bullish in the last
two quarters, driven by increase in
demand in the second half of FY2021.
The prices showed a sharp increase
in the concluding months of FY2021.
UNIT COSTS
Particulars
Alumina cost
(ex-Lanjigarh)
Aluminium
hot metal
production
cost
Jharsuguda
CoP
BALCO CoP
(US$ per tonne)
FY2021 FY2020
275
235
%
change
(15)
1,347
1,690
(20)
1,304
1,686
(23)
1,450
1,700
(15)
During FY2021, the cost of
production (CoP) of alumina
improved to US$ 235 per tonne,
due to benefits from increase in
locally sourced bauxite, continued
debottlenecking, improved capacity
utilisation and plant operating
parameters. This was further backed
by reduced input commodity prices
(mainly caustic soda and HFO).
In FY2021, the total bauxite
requirement of about 5.3 million
tonnes was met by Odisha (56%)
and imports (44%). In the previous
year, the bauxite supply mix was
captive mines (9%), Odisha (49%) and
imports (42%).
< BACK TO CONTENTS
In FY2021, the CoP of hot metal
at Jharsuguda was US$1,304 per
tonne, down by 23% from US$1,686
in FY2020. The hot metal CoP at
BALCO fell to US$1,450 per tonne,
down by 15% from US$1,700 per
tonne in FY2020. This was primarily
driven by improved materialisation
of domestic coal from Coal India
Limited (CIL) with lower auction
premiums and structural reduction
in Renewable Purchase Obligation
rates. Improved production and
lower cost of Lanjigarh Alumina
along with subdued input commodity
prices in first nine months supported
our cost reduction journey.
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
8
-
-
FY2021 FY2020
28,644 26,577
1,998
8%
7,751
27%
Particulars
Revenue
EBITDA
EBITDA margin
During the year, revenue increased
by 8% to `28,644 crore, driven
primarily by rising LME aluminium
prices and higher production
volumes. EBITDA was significantly
up at `7,751 crore (FY2020: `1,998
crore), mainly due to improved
hot metal cost of production and
increased sales realisation.
STRATEGIC PRIORITIES &
OUTLOOK
With the increasing primary
aluminium demand, the outlook for
FY2022 is strong. Regional ingot
and value-added product premiums
are rapidly increasing, reflecting a
combination of low ordering for 2021
and stronger than expected demand.
The input commodity prices across
carbon are moving on a higher
side driven by continued demand
increases. We are looking at ways
to continuously optimise our costs,
while also increasing the price
realisation to improve profitability
sustainably.
India’s market is expected to have
robust growth, supported primarily
by growing industrial activity and
government focus on infrastructure
sector and domestic manufacturing
in the country. Several government
initiatives (Make in India,
Production-linked Incentive for
domestic manufacturing, National
Infrastructure Pipeline and National
Rail Plan) will enhance aluminium
demand, going forward.
Vedanta continues to expand its
value-added product portfolio in
line with evolving market demand,
making it poised to grow in the Indian
aluminium market.
At our power plants, we are also
working towards reducing gross
calorific value (GCV) losses in coal
as well as improving plant operating
parameters which should deliver
higher plant load factors (PLFs) and a
reduction in non-coal costs. Vedanta
is working out a plan to expedite
operationalisation of Radhikapur and
Jamkhani coal mines.
Wire Rods produced by Vedanta Aluminium
Whilst the current market outlook
remains bullish, our core strategic
priorities include:
Focus on the health & safety of our
employees, business partners,
customers and community
Deliver alumina and aluminium
production through structured
asset optimisation framework
Enhance our raw material security
of bauxite and alumina
Improve coal linkage security,
better materialisation
Expedite operationalisation of
Radhikapur and Jamkhani coal
block
Zero slippage in raw material and
finished goods quality
Improve our plant operating
parameters across locations
Improve realisations by enhancing
our value-added product portfolio
146
147
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Power
< BACK TO CONTENTS
OCCUPATIONAL HEALTH & SAFETY
We reported 1 fatality at TSPL in FY2021. The
accident was thoroughly investigated and learnings
have been propagated across our employees,
business partners and across the group.
We continue to strengthen the ’Visible Felt
Leadership‘ through the on-ground presence of
senior management, improvement in reporting
across all risk and verification of on-ground critical
controls. We also continue to build safety assisting
infrastructure development through the construction
of pedestrian pathways, dedicated route for bulkers,
creation of secondary containment for hazardous
chemicals and other infra development across sites.
THE YEAR IN BRIEF
In FY2021, TSPL’s (Talwandi Sabo Power Limited) plant availability was 81% and Plant Load Factor (PLF) was 40%,
primarily on account of COVID-19 related demand disruption in H1 FY2021.
148
TSPL Plant
149
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
< BACK TO CONTENTS
Operational review
Power
ENVIRONMENT
One of the main environmental
challenges for power plants is the
management and recycling of fly
ash. At all our operations, we have
a managed to utilise more than
100% of generated fly ash and
60% in TSPL. The reduction in ash
utilisation is due to COVID-19 related
demand disruption and national/
local lockdowns affecting traffic
movement, particularly in H1.
TSPL has implemented all the
recommendations given by M/s
Golder associates for ash dyke.
Additional review done by dyke
designer and assurance was also
taken from third party (M/s TSE)
regarding ash dyke stability.
TSPL has recycled 18.5% of the
water used. We are further working
to sustain the recycled water
percentage through measures
planned during FY2022.
PRODUCTION PERFORMANCE
OPERATIONS
Particulars
Total power
sales (MU)
Jharsuguda
600 MW
BALCO 300
MW*
MALCO#
HZL wind
power
TSPL
TSPL –
availability
FY2021 FY2020
11,261 11,162
%
change
1
2,835
776
-
1,596 1,726
(7)
-
351
-
437
6,479 8,223
81% 91%
-
(20)
(21)
-
# continues to be under care and
maintenance since 26 May 2017 due to low
demand in Southern India.
* we have received an order dated 01 Jan
2019 from CSERC for Conversion of
300MW IPP to CPP w.e.f. 01 April 2017.
During the Q4 FY2019, 184 units were sold
externally from this plant.
During FY2020, power sales were
11,261 million units, 1% higher y-o-y.
Power sales at TSPL were 6,479
million units with 81% availability in
FY2021. At TSPL, the Power Purchase
Agreement with the Punjab State
Electricity Board compensates us
based on the availability of the plant.
The 600MW Jharsuguda power plant
operated at a lower plant load factor
(PLF) of 58% in FY2021.
The 300 MW BALCO IPP operated at a
PLF of 66% in FY2021.
The MALCO plant continues to
be under care and maintenance,
effective from 26 May 2017, due to low
demand in Southern India.
UNIT SALES AND COSTS
%
change
(14)
(8)
(19)
(22)
2.5
2.3
3.1
FY2021 FY2020
3.6
Particulars
Sales
realisation
(`/kWh)1
Cost of
production (`/
kWh)1
TSPL sales
realisation
(`/kWh)2
TSPL cost of
production
(`/kWh)2
(1) Power generation excluding TSPL
(2) TSPL sales realisation and cost of
2.1
3.0
3.7
2.7
production is considered above, based
on availability declared during the
respective period
Employee at operational site, TSPL
100%+
Utilisation of generated
fly ash at all operations
6,479
million units
Power sales at TSPL
in FY2021
Channeling the solar power at TSPL facility
STRATEGIC PRIORIES & OUTLOOK
During FY2022, we will remain
focused on maintaining the plant
availability of TSPL and achieving
higher plant load factors at the
BALCO and Jharsuguda IPPs.
Our focus and priorities will be to:
Resolve pending legal issues and
recover aged power debtors
Achieve higher PLFs for the
Jharsuguda and BALCO IPP
Improve power plant operating
parameters to deliver higher
PLFs/availability and reduce the
non-coal cost
Ensuring safe operations, energy
and carbon management
Average power sale prices, excluding
TSPL, decreased by 14% to `3.1 per
kWh and the average generation cost
was lower at `2.3 per kWh (FY2020:
`2.5 per kWh), driven mainly by
decrease in coal prices and improved
linkage materialisation.
In FY2021, TSPL’s average sales price
was lower at `3.0 per kWh (FY2020:
`3.7 per kWh), and power generation
cost was lower at `2.1 per kWh
(FY2020: `2.7 per kWh).
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
(8)
(15)
-
FY2021 FY2020
5,860
5,375
1,407
1,649
26% 28%
Particulars
Revenue
EBITDA
EBITDA margin
*Excluding one-offs
EBITDA for the year was 15% lower
y-o-y at `1,407 crore mainly due to
low capacity charges as PPA at TSPL,
BALCO and Zinc India and lower
realisation at TSPL, partially offset by
increase in power sales at Aluminium
business.
150
151
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Iron Ore
< BACK TO CONTENTS
OCCUPATIONAL HEALTH &
SAFETY
In-spite of our best efforts
towards the vision of zero harm,
we are very sorry to inform that
we lost one of our business
partner colleagues at our
Karnataka operations in a fatal
accident at the mobile screening
plant. This has appalled the
entire management and we
thus undertook to review all our
activities for the risk perception
and on ground implementation
of controls. Our Lost Time Injury
Frequency Rate (LTIFR) has
increased to 0.56 (FY 2020:0.45).
We engaged a third-party
consultant to identify the
hidden risk in our operations
and further strengthened our
grid owner systems with focus on
implementation of Vedanta Safety
performance standard on ground.
We have a robust top-down
approach with more than 95% month
on month compliance for Visible
Felt Leadership rounds including
the ExCo. Collective efforts of our
enthusiastic business partners, grid
owners and line managers has been
effective in ensuring critical controls
in place for all identified Critical
Activities.
IOB has implemented more focused
initiatives to improve vehicle and
driving safety. At Iron ore Karnataka
all our drivers working in mining are
trained by OEMs, and at VAB, we
have developed internal trainers
THE YEAR IN BRIEF
Production of Crude ore at Karnataka stood at 5.60 wet million tons. With the order of Central Empowered
Committee (Supreme Court appointed body) on 21 March 2020, our annual mining capacity has been increased
up to 5.89 mtpa. In line with this, the Government of Karnataka on February 2021 has allocated the production
quantity of 5.60 wet million tons for FY2021 to maintain the Supreme Court allocated district cap.
Meanwhile, operations in Goa remained in suspension in FY2021 due to a state-wide directive from the Supreme
Court. However, we continue to engage with the government to secure a resumption of mining operations.
Met Coke division at Amona facility
for vehicle and driving safety
with greater focus given on one
way-traffic, pedestrian walkways,
discipline parking of trucks and
HEMM, pre-start inspection etc.
Our one of its kind Grid Owners
Scheme has proved to be the
essence for inculcating and
percolating the true values of
Safety leadership at site level.
With each grid owner working
as a responsible steward, our
BUs have seen commendable
positivity and enthusiasm
towards compliance with not
just safety standards but also
green belt development, waste
segregation, UA/UC reporting,
critical task management, etc.
With the wholehearted
involvement of our line managers,
we had run a theme-based
safety campaign on “Line of Fire
at Workplace” which included
site rounds, on-site trainings,
awareness sessions, online
sessions, online quiz, poster and
slogan competitions, daily mailers
and screensavers. The campaign
helped us to identify and control
situations and conditions of line
of fire across all BUs. Post this
successful and well-accepted
campaign, we will be organising
similar theme-based campaigns
every quarter to strengthen the
safety culture of our business.
Grid Owners Scheme
One-of-its-kind
programme
implemented
to encourage
Safety leadership
152
153
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Iron Ore
With the persistent pandemic of
COVID-19 across the nation, top
management team of IOB has been
driving continual efforts to restrict
spread of the COVID-19 among our
employees and business partners.
After a small duration of shutdown
due to ‘Janata curfew’ and nation-
wide lockdown in the month of
April 2020, we were able to restart
majority of our operations by the last
week of April. Till date we have tested
up to 1,400 staff, workmen and
business partner employees under
travel and contact tracing guidelines.
We have had 318 persons who were
found positive.
Our IOB COVID-19 taskforce,
under the guidance of our CEO
and unit wise cross functional
teams, for implementation of all
the preventive and precautionary
measures, is engaged in prevention
and control of the virus. Controls
like cold fumigation for common
areas, mandatory screening, social
distancing, usage of masks, contact
tracing, work from home, etc. proved
effective and steered us to maintain
our business continuity. Also, our
state-of-the-art video analytics
system called COVID Marshall which
was rolled out by our Security and
IT team, gave us an edge to ensure
compliance of social distancing,
mask compliance, etc. The solution
was extended to other group
companies as a best practice. One
of the major milestones achieved
during this phase was that we were
able complete the BF#3 re-lining
project at VAB with zero outbreaks
of COVID-19 among project workers
and employees which was an
outcome of testing at source and
destination for the project workmen
and strict controls on site.
Our focus for the upcoming year
would be on strengthening the
controls of critical activities,
business partner safety
management, centralisation, and
standardisation of HSE trainings,
up-grade of incident investigation
methods and digital transformation
in HSE functions for effective
management.
154
Metallurgical Coke Plant at Amona Value added Business
ENVIRONMENT
At our Value-Added Business we
recycle and reuse almost all the
wastewater. Only the non-contact
type condenser cooling water of the
power plant is cooled and treated
for pH adjustment and discharged
back into the Mandovi river, which
is a consented activity by the
authorities.
We have further strengthened our
dust control system by installing new
bag houses systems with advanced
design at our Blast furnace 2 and
Coke screening plant 1 & 2.
At Iron ore Karnataka, continuing
with its best practices, the Company
has constructed 38 check dams,
7 settling ponds and 2 harvesting
pits having a rainwater harvesting
potential of 2,75,805 m3/annum.
Additionally, the Company de-silted
10 nearby village ponds increasing
their rainwater harvesting potential
by 75,629 m3/annum.
In FY2021, around 5 Ha of mining
dump slope was covered with
biodegradable geotextiles to
prevent soil erosion and 41,000
native species saplings were planted.
Various latest technologies like use
of fog guns; environmentally-friendly
dust suppressants mixed with
water were adopted on the mines to
reduce water consumption for dust
suppression without affecting the
effectiveness of the measures.
AWARDS AND ACCOLADES
Value-Added Business achieved
2 Green Triangle Society Safety
Awards. PID 2 has won the 1st
prize, Gomant Sarvocha Suraksha
Puraskar and PP 1 won the 2nd
prize, Gomant Suraksha Puraskar
in the event organised by Green
Triangle Society under the aegis
of Goa Inspectorate of Factories
and Boilers
The business received the Indian
Chamber of Commerce - National
OHS Gold award for excellence
in Occupation Safety and Health
Practices
VAB Won CII National Energy
Efficiency Circle Competition
2020’
IOK Won FIMI’s Subh Karan
Sarwangi Award
IOK won Grow Care India
Environment Gold Award
< BACK TO CONTENTS
Vizag General Cargo Berth
(VGCB) won 3-star award in
‘EHS Excellence Award’ at the
13th edition of CII-South Region
EHS Excellence Awards 2020 in
recognition of the outstanding
performance in various EHS
categories
VGCB Won Greentech Safety
and Environment Award under
Safety & Environment Excellence
category
VGCB Won Apex India Safety Gold
Award 2020 under Safe Workplace
Category
PRODUCTION PERFORMANCE
(`crore, unless stated)
%
change
FY2021 FY2020
5.0
-
5.0
596
6.5
2.1
4.4
609
4.4
-
4.4
681
6.6
0.9
5.8
666
15
-
15
(12)
(2)
-
(24)
(8)
Particulars
Production
(dmt)
Saleable ore
Goa
Karnataka
Pig iron (kt)
Sales (dmt)
Iron ore
Goa
Karnataka
Pig iron (kt)
OPERATIONS
At Karnataka, production was
5 million tonnes, 15% higher y-o-y.
Sales in FY2021 were 4.4 million
tonnes, 24% lower y-o-y due to
COVID-19 impact. Production of pig
iron was 596,197 tonnes in FY2021,
down by 12% y-o-y due to COVID-19
impact and shut down of plant for
two months due to planned relining
activity.
At Goa, mining was brought to a
halt pursuant to the Supreme Court
judgement dated 7 February 2018
directing all companies in Goa to
stop mining operations with effect
from 16 March 2018. We continue to
engage with the government for the
resumption of mining operations.
We bought low grade iron ore in
auctions held by Goa Government in
Auction No -23 & 24. This ore along
with opening stock of ore purchased
in 22nd auction and fresh royalty paid
on ore moved out of mines post the
Supreme Court order, was exported
which further helped us to cover our
fixed cost. Some ore was used to
cater to the requirement of our pig
iron plat at Amona.
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
31
-
-
FY2021 FY2020
4,528
3,463
878
1,804
40% 25%
Particulars
Revenue
EBITDA
EBITDA margin
In FY2021, revenue increased to
`4,528 crore, 31% higher y-o-y
mainly due twofold increase in sales
volume at Goa and improved margin
at Goa, Karnataka and VAB during
the year. EBITDA increase to
`1,804 crore compared with
`878 crore in FY2020 was mainly
due to improved margin and higher
volume at Goa.
STRATEGIC PRIORITIES &
OUTLOOK
Our near-term priorities comprise:
Resume mining operations in Goa
through continuous engagement
with the government and the
judiciary
Realign and revamp resources,
assets, HEMMs for starting the
mine’s operation
Grow our footprint in iron ore
by continuing to participate in
auctions across the country,
including Jharkhand
Securing EC for the expansion of
production capacity of pig iron
plant by 1.7 ltpa
Advocacy for removal of
E-auction/trade barrier in
Karnataka
Open cast mine at Chitradurga
155
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Steel
THE YEAR IN BRIEF
ESL is an integrated steel plant (ISP) in Bokaro, Jharkhand, with a design capacity of 2.5 mtpa. Its current
operating capacity is 1.5 mtpa with a diversified product mix of wire rod, rebar, DI pipe and pig iron.
In FY2021, ESL Steel Limited (ESL) has achieved lowest ever cost during the year since acquisition resulting in
higher EBITDA margin vis-à-vis previous period (US$ 95 per tonne v/s US$ 78 per tonne).
156
< BACK TO CONTENTS
OCCUPATIONAL HEALTH &
SAFETY
We had one unfortunate incident
on the road inside the plant on
29 July 2020, wherein the driver
while standing on the road in
front of the truck was struck
by a payloader. The vehicle
was coming from the opposite
direction and resulted in fatality.
Actions were undertaken as per
the detailed investigation to
avoid such incidents in future.
Currently, our LTIFR is 0.38.
Capability development of our
employees and business partners
continue to be our priority. We
have engaged various external
agencies in providing specialised
trainings such as rescue
training, training for signalman
and riggers, defensive driving
training, Vedanta Safety Standard
requirements, MBRD sessions,
and so on.
As a part of our 24x7 safety
culture, we have commenced
monthly shutdowns, continuous
engagement with all team
members, in which the senior
leadership visits the shopfloors
and communicates with workers
on lessons learnt from recent
incidents. Our safety alerts are
also available in local languages
and displayed at all strategic
locations.
External studies have been
conducted on ergonomics,
hygiene study (qualitative)
illumination, noise and arc flash
assessment. We have also
strengthened our firefighting
capability both in terms of
72%
Of VAP sales in FY2021
maintained by ESL Steel
manpower and infrastructure.
On people engagement we have
organised the National Safety
Month celebrations and Road Safety
Month celebrations with various
competitions for employees and
business partners.
We have also organised our
first-ever Safety Summit to discuss
ways and means to enhance our safety
performance as a business unit.
We have won two external
recognition CII HSE Excellence
Award (Certificate of Appreciation)
and Greentech Safety Award.
We have also implemented
the COVID protocol/SOP
formulated to ensure business
continuity by ensuring
minimum footfall and mitigating
COVID-19 risk. This includes
staggered shift schedules,
zero touch auto sanitising
facilities, daily sanitisation
of workplace, vaccination for
frontline warriors, SOP and
handbook on COVID-19, PPE,
compliances through automation,
Cardinal COVID rules, etc.
ESL plant
157
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Steel
Plantation Drive at ESL for a Sustainable Future
We are using LP steam in blast
furnace to minimise the fuel
requirement, LD gas and BF gas in
several operations such as reheating
furnace of rolling mills, blast furnace,
DIP and lime and Dolo to reduce
the fuel consumption, and running
TG through steam generated from
waste heat recovery.
In Air Emission Management, we
are revamping Oxygen Convertor
Gas Recovery (OG) system in Steel
Melting Shop (SMS) to reduce
fugitive emission, upgrading
equipment to meet the norms
stipulated by the regulatory
authorities, revamping ESP of Sinter
Plant, installing fixed sprinklers all
along the roads and dry fog system
in all the closed conveyors and
deploying mechanical sweepers for
road sweeping.
PRODUCTION PERFORMANCE
Particulars
Production (kt) 1,187
189
Pig iron
165
Billet
338
TMT bar
361
Wire rod
135
Ductile iron
pipes
FY2021 FY2020
1,231
167
27
468
413
155
%
change
(4)
13
-
(28)
(13)
(13)
ENVIRONMENT
In Waste Management system,
100% utilisation of blast furnace
granulated slag, sale of fly ash
to cement industries through
long-term contracts and brick
manufacturers, disposal of LD slag,
disposal of biomedical waste to
through Common Bio-medical Waste
Treatment Facility (CBWTF), sale of
used oil and zinc dust to recyclers
authorised by the Pollution Control
Board and re-processors are being
ensured. E-waste and battery
waste are also sent to authorised
recyclers and re-processors and our
membership with Treatment, Storage
and Disposal Facility (TSDF) is helping
the disposal of hazardous waste.
In Water Management, treatment of
4,500 kl of effluent daily in the Effluent
Treatment Plant is done and it is being
reutilised in several processes such as
coke quenching, BF slag granulation,
in greenbelt development, fire
fighting, dust suppression and in
operations of lime and Dolo, DIP and
others. Recycling percentage has
increased from 12% to 26 %.
In Energy Management, the usage
of waste heat from coke oven
flue gas for generation of steam,
which ultimately helps in power
generation, reduction in auxiliary
power consumption from 12 % to 8%
through improvement in station heat
rate are carried out.
158
OPERATIONS
There have been significant gains
in operational efficiencies, such
as optimisation of the coal mix in
coke ovens and iron ore blending.
Improved yields of the converters
and finishing mills also added to the
efficiency.
During FY2021, we produced
11,87,310 tonnes of saleable
product, down 4% y-o-y on account
of reduced availability of hot metal
due to lower production amidst the
disruption caused by the pandemic.
The priority remains to enhance
production of value-added products
(VAPs), i.e., TMT Bar, Wire Rod and
DI Pipe. ESL maintained 72% of VAP
sales, in line with priority.
Our Consent to Operate (CTO) for
the steel plant at Bokaro, which was
valid until December 2017, was not
renewed by the Jharkhand State
Pollution Control Board (JSPCB).
This was followed by the Ministry of
Environment, Forests and Climate
Change (MoEF&CC) revoking the
Environmental Clearance (EC) dated
21 February 2018. MoEF&CC, on
25 August 2020, has granted a Terms
of Reference to ESL for 3 mtpa plant
with conditions like fresh EIA/EMP
reports and public hearing. The
Honorable High Court of Jharkhand
had extended the interim protection
granted in the pending writ petitions
till 16 September 2020. Hon’ble
High Court on that date pronounced
and revoked the interim stay for
plant continuity w.e.f 23 September
2020. ESL filed a SLP before Hon’ble
Supreme Court against the 16
September 2020 order for grant of
interim status quo order and plant
continuity. Vide order dated
22 September 2020, Hon’ble
Supreme Court issued notice and
allowed plant operations to continue
till further orders. Public hearing has
been concluded on 16 December
2020, and ESL has applied for grant
of Environment Clearance to MoEF
& CC on 11 January 2021 on Parivesh
Portal of MoEF & CC and presented
before EAC on 11 Febuary 2021.
< BACK TO CONTENTS
The revised proposal has been
submitted on 14 March 2021 post
inputs from 11 Febuary 2021
meeting.
PRICES
Particulars
Pig Iron
Billet
TMT
Wire rod
DI pipe
Average steel
price (US$ per
tonne)
(US$ per tonne)
FY2021 FY2020
354
418
494
519
602
495
382
336
539
537
544
488
%
change
8
(20)
9
3
(10)
(1)
Average sales realisation decreased
1% y-o-y from US$495 per tonne
in FY2020 to US$488 per tonne in
FY2021. Prices of iron and steel
are influenced by several macro-
economic factors. These include
global economic slowdown, US-
China trade war, supply chain
destocking, government expenditure
on infrastructure, the emphasis on
developmental projects, demand-
supply dynamics, the Purchasing
Managers’ Index (PMI) in India and
production and inventory levels
across the globe, especially in China.
Even though the NSR dipped by
US$7 per tonne, we were able to
increase our EBITDA margin to
US$95 per tonne for the year (against
US$78 per tonne in FY2020) through
better control over costs.
UNIT COSTS
Particulars
Steel (US$ per
tonne)
FY2021 FY2020
418
393
%
change
(6)
Cost has decreased by 6 % y-o-y
from US$ 418 per tonne to
US$ 393 per tonne in FY2021,
primarily on account of softening of
coking coal price during the year and
operational efficiencies which was
managed through improvement in
key operational metrics.
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
9
48
-
FY2021 FY2020
4,283
4668
588
871
19% 14%
Particulars
Revenue
EBITDA
EBITDA margin
Revenue increased by 9% to
`4,668 crore (FY2020: `4,283 crore),
primarily due to higher volume.
EBITDA increased by 48% to
`871 crore in line with higher sales
and improved cost of production.
STRATEGIC PRIORITIES AND
OUTLOOK
Steel demand is expected to surge
owing to the gradual recovery in
economic activities across the world,
and the emphasis of governments
to ramp up infrastructure spend.
The focus is to operate with the
highest Environment, Health and
Safety standards, while improving
efficiencies and unit costs.
The focus areas comprise:
Ensuring business continuity
Greater focus on reliability
centred maintenance
Obtain clean ‘Consent to Operate’
and environmental clearances
Raw material securitisation
through long-term contracts
approaching FTA countries for
coking coal
Ensure zero harm and zero
discharge, fostering a 24x7 safety
culture
Vaccination drive for employee safety & wellbeing
159
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Copper – India / Australia
< BACK TO CONTENTS
OCCUPATIONAL HEALTH AND
SAFETY
The lost time injury frequency
rate (LTIFR) was zero till March
2021 (FY2020: 0).
The site retained its ISO accreditation
in safety, environment and quality
management systems and the
opportunity of a production lull was
used to review and further improve
these systems.
ENVIRONMENT
Copper Mines of Tasmania
continued in care and
maintenance awaiting a decision
on restart. Meanwhile, a small,
dedicated team is maintaining the
site and there were no significant
safety or environmental incidents
during the year.
PRODUCTION PERFORMANCE
Particulars
Production (kt)
India – cathode
FY2021 FY2020
%
change
101
77
31
OPERATIONS
The Tamil Nadu Pollution Control
Board (TNPCB) vide order,
dated 9 April 2018, rejected the
consent renewal application of
Vedanta Limited for its copper
smelter plant at Tuticorin. It
directed Vedanta not to resume
production operations without
formal approval/consent (vide
order dated 12 April 2018), and
directed the closure of the
plant and the disconnection of
electricity (vide order dated
23 May 2018).
The Government of Tamil Nadu
also issued an order dated
28 May 2018 directing the TNPCB
to permanently close and seal
the existing copper smelter
at Tuticorin; this was followed
by the TNPCB on 28 May 2018.
Vedanta Limited filed a composite
appeal before the National
Green Tribunal (NGT) against all
the above orders passed by the
TNPCB and the Government of
Tamil Nadu. In December 2018,
NGT set aside the impugned
orders and directed the TNPCB to
renew the CTO. The order passed
by the NGT was challenged by the
Tamil Nadu State Government in
the Hon’ble Supreme Court.
The Company had filed a writ
petition before the Madras High
Court challenging various orders
passed against the Company in
2018 and 2013. On 18 August
2020, the Madras High Court
delivered the judgement wherein
it dismissed all the writ petitions
filed by the Company.
20%
Increase in y-o-y revenue
achieved by Sterlite Copper
THE YEAR IN BRIEF
Tuticorin’s copper smelter plant was shut down for FY2021. We continue to engage with the Government of India
and relevant authorities to enable the restart of operations at Copper India. We continued to operate our refinery
and rod plant at Silvassa, catering to the domestic market.
Refinery at Sterlite Copper
160
< BACK TO CONTENTS
161
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report MANAGEMENT DISCUSSION AND ANALYSIS CONTINUED...
Operational review
Copper – India / Australia
< BACK TO CONTENTS
FINANCIAL PERFORMANCE
(`crore, unless stated)
%
change
20
-
-
FY2021 FY2020
9,053
10,890
(177)
(300)
(2)% (3)%
Particulars
Revenue
EBITDA
EBITDA margin
During the year, EBITDA was `(177)
crore and revenue was `10,890 crore,
an increase of 20% on the previous
year’s revenue of `9,053 crore. The
increase in revenue was mainly due to
higher Copper LME prices and higher
volume. EBITDA loss decreased to
`177 crore on account of increase in
sales realisations by 20%.
Encouraging diversity for inclusive talent growth
The Company has approached the
Supreme Court and challenged
the said High Court order by way
of a Special Leave Petition (SLP)
to Appeal and also filed an interim
relief for care and maintenance
of the plant. The matter was then
listed on 2 December 2020 before
the Supreme Court Bench. The
Bench, after having heard both the
sides, concluded that at this stage
the interim relief in terms of trial
run could not be allowed. Further,
considering the voluminous nature
of documents and pleadings, the
matter shall be finally heard on
merits. Besides, Hon’ble Supreme
Court held that the case will be listed
once physical hearing resumes in
the Supreme Court. The matter
was again mentioned before the
Bench on 17 March 2021, wherein the
matter was posted for hearing on
17 August 2021.
Meanwhile, the Company’s Silvassa
refinery and rod plant continues to
operate as usual, enabling us to cater
to the domestic market.
Our copper mine in Australia has
remained under extended care and
maintenance since 2013. However,
we continue to evaluate various
options for its profitable restart,
given the government’s current
favourable support and prices.
(`crore, unless stated)
%
change
18
FY2021 FY2020
5,855
6,897
PRICES
Particulars
Average
LME cash
settlement
prices (US$
per tonne)
Average LME copper prices
increased by 18% compared with
FY2020.
STRATEGIC PRIORITIES &
OUTLOOK
Over the following year our focus
and priorities will be to:
Engage with the government and
relevant authorities to enable the
restart of operations at Copper
India
Sustain operating efficiencies,
reducing our cost profile
Upgrade technology to ensure
high-quality products and services
that sustain market leadership and
exceeds customer expectations
PORT BUSINESS
Vizag General Cargo Berth (VGCB)
During FY2021, VGCB operations
showed a decline of 29% in discharge
and 25% in dispatch compared to
FY2020. This drop was mainly due
to worldwide lockdown during the
pandemic and Government of India’s
initiatives towards curtailing import
coal volumes and encouraging
domestic coal production or
consumption. This has resulted
in ~26% reduction of import coal
volumes in the Vizag region and ~12%
across India on a y-o-y basis.
Purity check of copper samples, Sterlite Copper
162
163
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Integrated Report Directors’ Report
DEAR MEMBERS,
Your Directors take pleasure in presenting the
4th Integrated Report (prepared as per the framework
set forth by the International Integrated Reporting
Council) and the Annual Standalone as well as
Consolidated Financial Statements for the financial year
ended March 31, 2021 of Vedanta Limited (‘Company’).
KEY BUSINESS, FINANCIAL AND OPERATIONAL
HIGHLIGHTS
Company Overview
Vedanta Limited, a subsidiary of Vedanta Resources
Limited, is one of the world’s largest suppliers of natural
resources, with primary operations in Oil & Gas, Zinc,
Lead, Silver, Copper, Iron Ore, Steel, and Aluminium &
Power across India, South Africa, Namibia, and Australia.
The Company’s strategic capabilities and alliances are
singularly focused on creating and preserving value
for its esteemed clients and the wider stakeholder
fraternity. The Company is among the top private sector
contributors to the exchequer with contribution of
~` 34,500 crores in FY 2021.
Vedanta is committed to delivering sustainable and
responsible growth, and are committed to sustainability
in mining practices, health & safety practices, wellbeing
of employees and development of the local communities.
The Company has been conferred the CII – ITC
Sustainability Awards, Bhamashah Award and certified as
FIVE-S Workplace Management System. Vedanta Limited
is listed on the BSE Limited and the National Stock
Exchange of India Limited and has American Depository
Shares (ADS) listed on the New York Stock Exchange.
COVID Strategy
The COVID-19 pandemic is an unprecedented
humanitarian and economic crisis. Our metal and mining
industry has sought to respond quickly to protect the
health of its employees and its communities. These
steps are in response to (and often ahead of) emergency
measures and lockdowns implemented by governments
across the world to control the spread of the pandemic.
During these testing times our priority is to ensure the
health and safety of our employees, contractors, and
stakeholders, while ensuring the business continuity to the
extent possible. At Group level, we have formulated various
controls to prevent the spread of infection and thereby
maintaining business continuity. We have formalised a
Group level COVID task force spearheaded by Ms. Priya
Agarwal (Non-Executive Director), Group HSE Head,
Comm. Head, HR head, CMO and CEO Nand Ghar. There
are business COVID taskforce formalised from diverse
departments whose tasks is to implement strong controls
and SOPs/protocols, audit the respective units to ensure
complete compliance to COVID protocols to prevent the
spread of the infection and to monitor and report the
proceedings to the business CEO and Group task force.
164
Even with temporary disruptions we continue building on
our strengths and commitment to operational excellence.
Company Performance
Vedanta has a portfolio of world-class, low-cost, scalable
assets that consistently generate strong profitability and
deliver robust cash flows. We continue to consolidate
our position as one of the largest diversified natural
resources businesses in the world. We are positioned in
the commodities market that have a growing demand in
one of the largest and fastest growing economy in the
world with a key focus on operational delivery. Asset
planning, operational excellence, cost control, productivity
enhancement, improvement in realisation, risk mitigation
coupled with increasing use of technology, more innovation
and digitisation has helped us to enhance the delivery from
our assets. Our key priority is to focus on ethics, governance,
and social licence to operate, while we continue our journey
towards zero harm, zero waste and zero discharge.
The year gone by was challenging, with tremendous
uncertainties in the macro environment with the advent
of novel coronavirus (COVID-19). However, we were
quick to adapt to the emerging realties, backed by the
relentless support of our dynamic workforce.
In FY 2021, we saw us achieving some of our best
quarters for our three large businesses: zinc, oil & gas,
and aluminium. In FY 2021, we were able to sustain our
low-cost advantage in aluminium by engaging structural
measures. While we have optimised our coal and bauxite
source mix, we also continued our journey towards
improving on operational efficiencies and debottlenecking
our assets for improved capacity utilisation. For Zinc India
operations, we completed 1.2 MnT mined metal project
activities and sustained production post-transition to a
fully underground mining company. We are also achieving
strong momentum in silver production and aim to be
among the top 3 producers of silver, globally. For Zinc
International, our performance ramp-up continues,
achieving highest ever production till date at Gamsberg,
along with sustained cost reduction. In Oil & Gas we
continued delivering on growth projects such as the
commissioning of the new gas facility, ramp up of polymer
injection, and upgradation of the liquid handing capacity.
As we look forward to the year ahead, we are operationally
well positioned to deliver. In Oil & Gas, we are the largest
private sector producer of crude oil in India and rank
among the world’s lowest cost producer with a pipeline
of assets in production, development, and exploration. In
Zinc, we are the world’s largest fully integrated zinc-lead
producer. In terms of Aluminium, we are India’s largest
primary aluminium producer supported by our own
captive power generation. We performed exceedingly
well on key environmental, social and governance (ESG)
aspects during the year. This is validated by our ranking in
the Dow Jones Sustainability Index, which improved nine
places to 12th globally in our industry.
< BACK TO CONTENTS
The strengths of our diverse portfolio, together with our focused growth strategy expanding our reserves and resource
base, a strong balance sheet, strong talent base, technology, and modernisation initiatives, all combine to create a truly
inspirational Company.
FINANCIAL HIGHLIGHTS
EBITDA at
`27,341 crores
30% higher y-o-y
(FY 2020: `21,061 crore)
Free cash flow (FCF) post-capex of
`13,821 crores
(FY 2020: `7,130 crores)
Net Debt at
increased by
`24,414 crores
`2,988 crores
compared to March 31, 2020
Robust adjusted
EBITDA margin1 of
36%
(FY 2020: 29%)
Interim dividend of
`9.5per share declared
during FY 2021
Profit Attributable to equity holders
(before exceptional items) at
`12,151 crores
(FY 2020: `3,995 crores)
Cash & liquid investments of
`32,614 crores
Contribution to the exchequer of
c. `34,500 crores
in FY 2021 (FY 2020: `32,400 crores)
REVENUE
86,863
FY 21
FY 20
FY 19
D
in crores)
(
EBITDA
27,341
86,863
83,545
FY 21
FY 20
90,901
FY 19
RETURN ON CAPITAL EMPLOYED
(%)
FCF POST CAPEX
19
FY 21
FY 20
FY 19
19
11
13,821
FY 21
FY 20
7,130
13
FY 19
11,553
D
in crores)
(
27,341
21,061
24,012
D
in crores)
(
13,821
GROWTH CAPEX
2,578
FY 21
FY 20
FY 19
2,578
NET DEBT
24,414
FY 21
FY 20
7,764
FY 19
6,385
D
in crores)
(
24,414
21,426
26,956
165
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports REVENUE CONTRIBUTION
2
3
9
,
1
2
9
2
7
,
2
1
3
5
,
7
8
2
5
,
4
8
6
6
,
4
4
4
6
,
8
2
0
9
8
,
0
1
D
in crores)
(
5
7
3
,
5
6
6
5
Zinc – India
Zinc –
International
Oil
and Gas
Iron ore
Steel
Copper
Aluminium
Power
Others
The standalone and consolidated financial statements of the Company for the financial year ended March 31, 2021
prepared as per Indian Accounting Standards (Ind AS) and in accordance with the provisions of the Companies Act, 2013
and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) forms part of this
Annual Report.
Operational Highlights
Business highlights
Zinc India
Highest ever ore production of 15.5
million tonnes despite disruptions on
account of the pandemic
Highest ever mined metal production
of 972 kt, up 6% y-o-y
Refined zinc-lead production of
930 kt, up 7% y-o-y
Zinc International
Cost of production at US$1,307 per
tonne, down 22% y-o-y
Increase in Gamsberg production
volume from 108kt in FY 2020 to 145kt
in FY 2021
BMM started a new product line of
recovering magnetite through its
tailings with potential capacity of 0.7
million tonnes of production per annum
Steel
Annual steel production at 1.19 million
tonnes for FY 2021
Robust margin of US$131 per tonne
during the last quarter (~22% EBITDA
Margin)
Oil & Gas
Average gross operated production
of 162 kboepd, down 6% y-o-y due
to impact of the pandemic on growth
projects completion and natural
field decline
Key growth projects update:
− New gas processing terminal
construction completed;
commissioning underway
expected to add ~100 mmscfd by
Q1 FY 2022
− Liquid handing capacity upgraded
by 30%, major facility systems
commissioned
− Enhanced Oil Recovery project
implemented in Bhagyam and
Aishwariya Fields
− Aishwariya Barmer Hill surface
facility commissioned; wells being
hooked up progressively
Drilling activities across the portfolio
in Rajasthan, North East & Cambay
regions. First well KW-2-Udip drilled
in Rajasthan
Capex growth projects update:
− 74 wells hooked up during FY 2021
− Ravva drilling programme
completed; ~11 kboepd of
incremental volumes
Copper India
Due legal process being followed to
achieve a sustainable restart of the
operations
Aluminium
Highest ever aluminium production
at 1,969 kt, retaining our position as
the largest aluminium producer in
the country
Highest ever alumina production
from Lanjigarh refinery at 1,841 kt,
up 2% y-o-y
Lowest ever hot metal cost of
production at US$1,347 per tonne,
20% lower y-o-y
Power
Lowest ever APC of 7.19% at the
1,980 MW TSPL plant in FY 2021
Sustained operations with zero import
coal in FY 21 through coal substitution
scheme of GoI (Government of India)
Iron Ore
Goa operations remains suspended
during the year due to state-wide
directive from the Hon’ble Supreme
Court, continuous engagement with
the stakeholders for a resumption of
mining operations
Production of saleable ore at Karnataka
at 5 million tonnes, up 15% y-o-y
Iron Ore Sales at Goa at 2.1 million
tonnes
Value Added Business achieved
highest ever EBITDA Margin of $104/T
supported by strengthening steel prices
The details of the business, results of operations and the significant developments have been further elucidated in Management
Discussion & Analysis section of the Annual Report.
< BACK TO CONTENTS
Key events during the year
Delisting
With respect to the voluntary delisting offer of equity
shares of the Company from BSE Limited and National
Stock Exchange of India Limited made by Vedanta
Resources Limited (‘VRL’), one of the members of the
promoter and promoter group of the Company, the
total number of Offer Shares validly tendered by the
Public Shareholders in the Delisting Offer was less than
the minimum number of Offer Shares required to be
accepted by the Acquirers in order for the Delisting
Offer to be successful in terms of Regulation 17(1)(a) of
the Delisting Regulations. Thus, the Delisting Offer is
deemed to have failed in terms of Regulation 19(1) of the
Delisting Regulations.
The complete details can be accessed at
www.vedantalimited.com.
Voluntary Open Offer
Pursuant to the Voluntary Open Offer made by Vedanta
Resources Limited (“Acquirer”) together with Twin Star
Holdings Limited, Vedanta Holdings Mauritius Limited
and Vedanta Holdings Mauritius II Limited, as persons
acting in concert with the Acquirer (“PACs”), to the
public shareholders of the Company during the year, in
accordance with the Securities and Exchange Board of
India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, the Acquirer and PACs have acquired
374,231,161 equity shares of the Company representing
10.07% of fully diluted voting share capital, thereby
increasing acquirer’s indirect shareholding in the
Company from 55.1% to 65.18%.
The complete details can be accessed at
www.vedantalimited.com
Acquisition
Vedanta Limited acquired the control over Ferro Alloys
Corporation Limited (FACOR), with effect from the
closing date, i.e. September 21,2020, in accordance with
the terms of Approved Resolution Plan and as replaced
by a new board of directors constituted with adequate
representation of the persons appointed by Vedanta
Limited and independent directors in compliance
with applicable laws. Vedanta Limited holds 100%
shareholding in FACOR.
In March 2021, the Company participated and was
declared as the successful bidder in the Liquidation
process for Sale of Assets of Bhachau and Khambhalia
coke manufacturing units of Gujarat NRE Coke Limited,
which was under liquidation under Bankruptcy Code.
The total capacity of Bhachau and Khambalia plants is
594 KTPA and 358 KTPA respectively. The acquisition
will complement our existing Iron Ore business via
backward integration through provision of the Met Coke
Requirement to our existing facilities.
Projects and Expansion Plan
Projects are key driving factor of our Group as our
aspirations for growth are very different from any of the
peers globally. In HZL, we have successfully completed
the development of North Decline (ND1) at Rampura
Agucha mine. This marked the completion of most
awaited shaft integration and liberated RA shaft from
statutory compliance of secondary outlet. This improves
the accessibility of shaft section, alternate emergency
evacuation, ease in mine equipment deployment at lower
levels of mine, face charging with emulsion explosives,
face drilling with long feed jumbo, etc. Also 650 kW
ventilation fan was installed and commissioned at SK Mine
with an objective to improve ventilation in underground
by 100 Cum/sec in SKA6 lens. All major projects
envisaged for 1.25 mtpa MIC have been commissioned
(except RD). Order placed for detail feasibility study for
expansion of zinc & lead smelting capacity.
In VZI, the Gamsberg mine and processing facilities are
stabilizing, which will set the stage for Gamsberg Phase
2 expansion. This expansion which would see a double
in the production capacity. A smelter enhancement to
the Black Mountain Complex (BMC) operations would
allow for refining our concentrate product to produce
metal. In Cairn, we are still focussed on the journey to
produce India’s 50% Oil & Gas production. GAS volumes
are up in Q4 and further ramping up as project is fully
commissioned now. The seismic acquisition programme
and satellite-based prospecting has commenced in
Open Acreage Licensing Policy (OALP). In Aluminium,
Lanjigarh expansion is the key expansion project and coal
block execution will be critical to deliver more value from
this sector.
We are set to deliver tremendous value to all our
stakeholders once we successfully execute these
projects of across the group.
Dividend Distribution Policy and Dividend
In terms of the provisions of Regulation 43A of the
Listing Regulations, the Company has adopted Dividend
Distribution Policy to determine the distribution of
dividends in accordance with the applicable provisions.
The policy can be accessed on the website of the
Company at www.vedantalimited.com.
With consistent dividend as a healthy sign of our
sustained growth, our firm belief in percolating the
benefits of our business progress for widespread
socioeconomic welfare facilitates the equitable sharing
of our economic value generated. Attaining steady
operational performance and a harmonised market
environment in continuation of the historical trends
helped us to reaffirm the realisation of competent
numbers for FY 2021.
166
167
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
RETURN TO SHAREHOLDERS
D
per share)
(
9.5
FY 21
FY 20
FY 19
9.5
3.9
18.85
The Company has declared interim dividend during the
year in compliance with the Dividend Distribution Policy:
Particulars
Interim Dividend
Record Date
Date of Declaration
Rate of Dividend per share
(Face Value of ` 1 per share)
%
Total Payout (` in crores)
FY 2020-21
1st
October 31, 2020
October 24, 2020
` 9.50
950
` 3,531.63
Pursuant to the Finance Act, 2020, dividend is taxable
in the hands of the shareholders with effective from
April 1, 2020 and tax has been deducted at source on the
Dividend at prevailing tax rates inclusive of applicable
surcharge and cess based on information received by the
Registrar & Share Transfer Agent and the Company from
the Depositories.
The Directors do not recommend any final dividend for
financial year ended March 31, 2021.
Credit Rating
Your Company is rated by CRISIL and India Rating and
Research Private Limited on its various debt instruments.
The details of ratings provided by the agencies is
stipulated in the Corporate Governance Report.
Economic Responsibility
Vedanta strives to be a responsible corporate citizen
and to make a positive contribution to the communities
in which we operate. Payment to exchequer viz. taxes,
royalty, dividend etc. is a vital part of our contribution to
national economies and people’s lives. Vedanta supports
the principles of greater transparency that increases
understanding of tax systems and build public trust.
With these values being ingrained in Vedanta’s DNA,
we are proud to share that we have contributed
~` 34,500 crores to the public exchequer of the various
countries where we operate.
Your Company publishes Tax Transparency Report which
provides an overview of the tax strategy, governance and
tax contributions made by the Company.
The report is available on the website at
www.vedantalimited.com
SUSTAINABILITY AND SOCIAL RESPONSIBILITY
Environmental, Social and Governance (ESG) Approach
Driven by the sincere approach to achieve larger good,
at Vedanta, our Environmental, Social and Governance
(ESG) priorities are well-aligned to our enterprise
goals and towards this end, we continue to work with a
target-based strategy focused on fostering an inclusive
and sustainable future for all.
Our ESG vision is strongly driven by the growing
need to address the expectations of our stakeholders
while delivering resilient business performance. As a
responsible corporate citizen, we are attuned to both
local and global expectations and endeavour to contribute
to the fulfilment of UN Sustainable Development Goals
(SDGs) and global frameworks such as ICMM and IFC
performance standards. The Vedanta Sustainability
Framework (VSF) as elucidated below provides the
cornerstone to our ESG approach.
Vedanta Sustainability
Framework
8 policies
Biodiversity; Energy & Carbon;
HIV-AIDS; HSE; Human Rights;
Social, Supplier & Contractor;
Sustainability Management;
Water
87 Standards and
Guidance Notes
Covering all of the policy
subject areas in line with
ICMM, IFC Performance
Robust monitoring
Annual audit (VSAP)
conducted at all Vedanta
locations to check
compliance with VSF.
Monitored by Group ExCo.
< BACK TO CONTENTS
Integrated Report
Statutory reports
Financial statements
Each pillar of our ESG vision is elaborated below for
further insights into the Company practices.
Environment
With the key objective of “Zero Harm, Zero Waste
and Zero Discharge” across all our operations, we
continue to manage our environmental impact through
associated programmes on water management,
energy and climate change, carbon footprint reduction,
solid waste management with recycling of our high-
volume-low-effect wastes such as fly ash, tailings dam
management, GHG emissions intensity reduction, and
biodiversity. We strive to set ourselves with aggressive
targets believing that our sustainable future depends
on responsible and eco-friendly operations.
Social
Guided by our aspirational goals, our priority areas
towards social development remain to become a
developer of choice in our areas of operations. We have
defined a social performance framework to secure
our social licence to operate assessing the maturity
of our business in the context and driving community
activities across multiple spheres such as child education,
combating malnutrition, medical infrastructure
development, women empowerment, and sports
engagement, among others.
Our community development programmes are
designed and developed to suit the requirements of our
immediate communities and country at large with specific
emphasis on criticalities. While we embark on the journey
to improve skilling, set up Nand Ghars and cater to larger
people needs through our CSR pillars, we are also focused
to ensure that we create a positive relationship with the
communities about our operations and aim to have all our
stakeholders as champions of our responsible practices.
Governance
As a pre-requisite for protecting shareholder value as
well as delivering sustainable growth, good corporate
governance underpins the delivery of our strategic
objectives and the outcomes produced thereafter.
Our governance philosophy with prudent and robust risk
management frameworks; internal controls; and strong
functional processes; stems from our core values of Trust,
Integrity, Care, Entrepreneurship, Innovation, Respect,
and Excellence. By overseeing the business conduct with
strict adherence to responsibility and ethics, the entire
structure, cascading from the Board of Directors and
Sustainability Committee at the top, supported by policies
and frameworks, enhances the prosperity, long-term
viability, and sustainability of the Company.
Thus, as the world renews its consensus around the
crucial role of ESG factors in assessment of all forms of
businesses, we believe that our ESG approach is certain
to reap meaningful returns over time.
Sustainability and Business Responsibility Report
Sustainable Development is integral to Vedanta’s core
business strategy. We continue to be a transparent and
responsible corporate citizen; committed to a ‘social
license to operate’ and partner with communities,
local governments and academic institutions to help
catalyse socio-economic development in the areas
where we operate.
The Company reaffirms its core values of Trust,
Entrepreneurship, Innovation, Excellence, Integrity,
Respect and Care, which are the basis of our Sustainable
Development Model.
The model continues to be centreed on the four strategic
pillars: Responsible Stewardship; Building Strong
Relationships; Adding and Sharing Value; and Strategic
Communications.
Responsible
governance supports
relationship building
Relationships enable
us to contribute to a
wider society
Responsible
Stewardship
Building Strong
Relationships
Adding and
Sharing Value
Strategic
Communications
Value help us to
maintain a licence to
operate
Enable us becoming
more transparent and
responsible corporate
citizen
These four pillars are critical to ensuring the long-term successful future of our business – meeting our strategic
goals of growth, long-term value and sustainability.
168
169
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports A separate detailed report on Company’s Sustainability
Development also forms part of the Annual Report.
Recognising sustainable development as a core
requirement to strategically improve the value of
our business, the Board of Directors constituted a
Sustainability Committee effective April 01, 2019
to provide oversight and assistance in building an
approach towards sustainability which mirrors our
prevailing business ethos of achieving excellence
through continuous improvement in our processes and
outcomes, while also benchmarking ourselves against
our global peers.
Details of the composition of the committee, its terms
and reference and the meetings held during FY 2021 is
elucidated in the Corporate Governance Report.
Your Company publishes an annual Sustainability Report
prepared in accordance with the Global Reporting
Initiative (GRI) Standards; mapped to the United Nations
Global Compact (UNGC); and aligned to Sustainable
Development Goals (SDGs). It reports our approach and
disclosure towards triple bottom line principles – People,
Planet and Profit.
Community
Relations & Social
Performance
Environment
Safety
Occupational Health
Reporting &
Communication
As per SEBI directives on Integrated Reporting (IR),
the Company has followed the framework of the
International Integrated Reporting Council to report
on all the six capitals that are used to create long-term
stakeholder value and also provided the requisite
mapping of principles between the Integrated Report,
the Global Reporting Initiative (‘GRI’) and the Business
Responsibility Report (BRR). Hence, a separate BRR
is not being published by the Company this year. The
Sustainability Report of the Company can be accessed at
www.vedantalimited.com.
planned programmes and reached out to communities
across India to fulfill their immediate needs in terms of
meals, dry ration, preventive health care etc. The year
2020-21 brought lot of laurels in the hats of Vedanta
Group. The group companies have been recognised for
Socio-economic impact it has created in the communities
through its large-scale CSR Program, receiving of more
than 16 National and International awards is a testimony
to that. Companies won CII ITC Sustainability Award, IHW
Council Health Impact Award, Grant Thornton SABERA
Award 2020, ICC Social Impact award 2021 to name a few.
Energy Conservation, Technology Absorption and
Foreign Exchange Earnings & Outgo
The information on conservation of energy, technology
absorption stipulated under Section 134(3)(m) of the Act
read with Rule 8 of the Companies (Accounts) Rules, 2014,
is annexed herewith as ‘Annexure A’.
The details of the Foreign Exchange Earnings and Outgo
are as follows:
Particulars
Expenditure in foreign
currency
Earnings in foreign
currency
CIF Value of Imports
Year ended
31 March, 2021
1,251
(` in crore)
Year ended
31 March, 2020
1,357
17,706
16,447
16,462
13,512
Corporate Social Responsibility
The year 2020-21 posed an immense challenge in
front of the entire Humanity, a new virus emerged and
ensured that all things which are otherwise considered
normal; comes to a standstill. COVID –19 has affected
all spheres of life in the country and the world at large.
Despite of all difficulties, Vedanta committed itself to the
For almost all our programmes, a bottom-up community
engagement approach is non-negotiable. This
collaborative approach ensures community ownership,
suitable project design, effective delivery and post
project sustainability.
Our development initiatives are governed by the
needs of the communities where we operate. Needs
assessment studies form the basis of the course of
action undertaken by the BU CSR teams. These actions
enable us to create a positive social impact where we
operate. All our community development programmes
are governed by the Vedanta CSR Policy, and Corporate
Technical Standards that are part of the Vedanta
Sustainability Framework. Further, to benefit from diverse
perspectives, and in keeping with a culture of collective
leadership, Vedanta has formed a Group CSR ManCom
and Group CSR EXCO.
Vedanta has a strong Board CSR Committee including
senior Independent Directors. The Committee provides
strategic direction for CSR programmes, and approves
its plans and budgets. It also reviews progress and guides
the CSR teams towards running well-governed and
impactful community programmes.
< BACK TO CONTENTS
An overview of CSR initiatives is provided in earlier
section of this Annual Report and report on CSR activities
for FY 2020-21 as per Section 135 of Companies Act,
2013 and rules made thereunder forms part of this
Directors Report and is annexed hereto as Annexure B.
The policy may be viewed at www.vedantalimited.com.
Vedanta’s Efforts to Combat COVID-19 Pandemic
Vedanta, which has been at the forefront of the battle
to combat the COVID-19 pandemic, has reached out to
communities across 9 states in India to provide them with
preventive healthcare and distribute free meals. As part
of the Meals for Free programme, the Company has so
far provided ~11.46 lakhs meals to daily wage earners
across the country. In addition, dry packet rations have
been provided to more than 13,500 families from the
marginalised sections of the society. On their part, the
business units have also distributed more than 49,650
dry ration packets to the local communities.
Vedanta has pledged 10 lakh meals to daily wage earners,
and has set up a ` 100 crores corpus for daily workers,
preventive healthcare and welfare of employees and
contract partners. The Company has also contributed
` 101 crores to PM-CARES Fund to join forces with the
government in fighting the pandemic.
Keeping in mind the poor condition of stray animals,
the Company has fed more than 50,000 stray animals
every day. The Company has so far provided more than
12.70 lakhs feedings to stray animals in Delhi, Mumbai
and Patna.
In a bid to strengthen preventive healthcare, Vedanta
has distributed more than 4.5 lakhs masks. The
Company has handed over another 2 lakhs N95 masks
to the Ministry of Health and Family Welfare. So far, the
Company has provided more than 26,000 surgical masks
and 75,000 surgical gloves to district hospitals across
the country.
Vedanta has also collaborated with the Ministry of
Textiles to import 23 machines for indigenously Personal
Protective Equipment (PPEs). The imported machines,
which are now operational, able to produce 50,000 PPEs
per day. The Company has distributed more than 1 lakhs
soaps and sanitisers across communities.
BALCO Hospital has set up isolation wards. A 100-bed
hospital has been commissioned at Korba in Chhattisgarh.
Jharsuguda unit supported District Administration for
District Covid Hospital by providing 110 bedded hospital
including 10 ICUs, 10 ventilators etc. The Cairn Centre
of Excellence (CCoE) in Jodhpur has been handed over
to district administration as a quarantine facility with a
120-bed capacity, with meals provided three times a day
for 150 people. More than 10 mobile health vans have
been made available to district administration for use as
ambulances and for distribution of essential commodities
by Business Units and Nand Ghars.
More than 1,100 women SHG members were engaged
in the stitching of masks and distributing same among
communities. They also contributed more than 10 ton
grains to grain banks created for supporting needy
families during lockdown. As an act of solidarity with
the state governments, Vedanta has contributed
` 32.3 crores to different State’s Chief Minister Relief
fund COVID-19 Mitigation Fund. Your Company has also
procured PPE kits for the Government of Odisha and also
arranged food packets, sanitiser kits to migrant workers
travelling back to their home states.
Employees have donated one day’s salary, which
was contributed by the Company for the relief funds.
Vedanta, in collaboration with Apollo Hospitals, has
established a 24x7 general helpline for the employees
to ensure timely healthcare advice during the lockdown.
The services are open for all employees and their families.
Digitalisation initiatives – CSR
Vedanta is committed towards bringing innovation &
creating shared values by managing our stakeholders
through different community development initiatives
in various thematic areas and automation in CSR
Governance. It has developed first of its kind (in-house)
application – called NIVAARAN for CSR function to
manage the community request, needs or grievances
and address them on time across Vedanta. Besides this,
an in-house, Power BI application was launched across
Vedanta in 2020 – CSR DISHA App to monitor the CSR
projects of Vedanta across all BUs.
COVID-19 led to the disruption of education for
millions of children. eKaksha – in collaboration with
the Government of Rajasthan was launched to provide
subject and chapter wise learning videos to all students
free of cost. One of the biggest engagements was
the virtual 5th Cairn Pink City Half Marathon 2020,
involving over 40,000 participants from 23 countries,
earning a special place as India’s biggest virtual marathon
in the Book of Records, UK.
Impact Assessment
The Vedanta Group has been at the very forefront
of India’s battle to combat COVID-19, and has made
substantial commitments across key regions,
communities and markets the group operates various
businesses in. A study was carried out through Weber
Shandwick to assess and benchmark key initiatives the
Group has undertaken to combat COVID-19 pandemic
across nine states in India, covering more than 600
respondents across different categories of stakeholders.
Most respondents (~90 %) are happy with the Group’s
COVID-19 initiatives.
93% of the respondents have rated highly on the
quality of assistance provided by the group.
The reach and efficacy of most initiatives have been
rated highly, with distribution of masks and engaging
rural SHG women initiatives leading with almost 59%
respondents giving an ‘exceptional’ rating to the same.
The rural beneficiary community has responded well; and
is largely happy with most initiatives.
170
171
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports HUMAN RESOURCES MANAGEMENT
People and Culture
Your Company has always aspired to build a culture
that demonstrates world-class standards in safety,
environment and sustainability. People are our most
valuable asset and we are committed to provide all our
employees with a safe and healthy work environment.
An update on People & Culture detailing the Company’s
initiatives, recruitment strategy, hiring projects and
talent management and development is elucidated in the
Sustainability and ESG Section of the Annual Report.
Employee Stock Option Scheme
Employee stock options is a conditional share plan for
rewarding performance on pre-determined performance
criteria and continued employment with the Company.
It provides a much better line-of-sight to all the
employees.
Your Company has established a share incentive
schemes viz. ‘Vedanta Limited Employee Stock Option
Scheme 2016’ (“the Scheme”). The Scheme was framed
with a view to reward employees for their contribution
in successful operation of the Company with wealth
creation opportunities, encouraging high-growth
performance and reinforcing employee pride.
The Scheme was launched after obtaining statutory
approvals, including shareholders’ approval by way of
postal ballot on December 12, 2016.
On March 31, 2021, the Nomination & Remuneration
Committee approved the grant of Employee Stock Options
2020 to Vedanta employees covering 38% of eligible
population. In-order to align the scheme with the best-in-
class reward practices globally and pertinent Indian peers,
as well as to emphasise on our value system of ‘CARE’ for
employees and culture of ‘Pay for Performance’ the ESOS
2020 plan has undergone significant transformation.
The grant under the ESOS 2020 is completely driven by
Business and Individual performance.
The new design has made our scheme even more
robust with an objective to place greater prominance
on superior individual performance thereby recognise
high performing talent while keeping them accountable
for business delivery. It has been ensured that the
scheme fulfills its motive of wealth creation for
employees to fulfill their financial goals and gives them
the sense of ownership.
To give prime importance to business delivery, ESG
and Carbon footprint have been added as additional
parameters to measure business performance. To ensure
that we operate sustainably in line with our motto of ‘zero
harm, zero waste and zero discharge’, multiplier based
on fatalities has also been included as a performance
parameter for vesting.
The Scheme is currently administered through Vedanta
Limited ESOS Trust (ESOS Trust) which is authorised by
the Shareholders to acquire the Company’s shares from
secondary market from time to time, for implementation
of the Scheme. The details of the trustees are provided
can be accessed at www.vedantalimited.com.
No employee has been issued stock options during the
year, equal to or exceeding one percent of the issued
capital of the Company at the time of grant.
During the year, the acquisition by the trust does not
exceeded 2% of the paid-up capital of the Company.
Further, the total acquisition by trust at no time exceeded
5% of the paid-up equity capital of the Company.
Pursuant to the provisions of SEBI (Share Based
Employee Benefits), Regulations, 2014 (“Employee
Benefits Regulations”), disclosure with respect to the
ESOS Scheme of the Company as on March 31, 2021 is
available on the website of the Company at
www.vedantalimited.com.
The Company confirms that the Scheme complies with
the SEBI Employee Benefits Regulations and there
have been no material changes to the plan during the
financial year.
A certificate from M/s SR Batliboi & Co. LLP, Chartered
Accountants, Statutory Auditors, with respect to the
implementation of the Company’s ESOS schemes, would
be placed before the shareholders at the ensuing Annual
General Meeting (AGM). A copy of same is available for
inspection by Members through Electronic Mode.
Managerial Remuneration, Employee Information and
Related Disclosures
The remuneration paid to Directors, Key Managerial
Personnel, and Senior Management Personnel during
FY 2020-21 was in accordance with the Nomination and
Remuneration Policy of the Company.
Disclosures under Section 197 of the Act and Rule 5(1)
of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 (“Rules”) relating to the
remuneration and other details as required is appended
as Annexure C to the Report.
In terms of provision of Section 136 of the Act and Rule
5(2), the Report and the Financial Statements are being
sent to the Members of the Company excluding the
statement of particulars of employees as prescribed
under Rule 5(2) of the Rules. The said information is
available for inspection through electronic mode. Any
member interested in obtaining a copy of the said
statement may write to the Company Secretary and the
same will be furnished upon such request.
Compensation Governance Practices at Vedanta
Vedanta has been built on a strong foundation of
governance where the Board, Key Executives and
Compliance Officer have been vigilant and committed
to ensure structural integrity, soundness and highest
standards of compensation practices. Over the last few
years we have matured many of our reward practices as
an attempt to continue to raise the bar.
The composition of Nomination and Remuneration
Committee (NRC) is in compliance with the Listing
Regulations and majority of the members are
< BACK TO CONTENTS
Independent Directors. The Chairman of the
committee is an Independent Director.
The members of the NRC together bring out the rich
expertise, diverse perspectives and independence in
decision-making on all matters of remuneration for
Directors, Key Managerial Personnel (KMP) & Senior
Management Personnel (SMP). The Independent
Directors are actively engaged throughout the year as
members of the NRC in various people matters even
beyond remuneration.
Any benefit provided to Key Executives are available to
all the employees of the Company as per the defined
Company policy.
Voice of the employee: We ensure the involvement
of bright minds from diverse functions in the
organisation and well-known external partners in
designing and driving the major incentive schemes
in the organisation. Our policies are transparent and
informed to employees in a timely manner confirming
that the employees have a say in all our practices.
A board charter appoints and sets our primary
responsibilities of NRC which includes selecting,
compensating, monitoring and, when necessary,
replacing key executives and overseeing
succession planning.
Best-in-class independent consultants are engaged to
advise and support the committee on matters of board
evaluation and leading reward practices in the industry.
The Executive Compensation Philosophy is well
established and benchmarked across relevant
industry comparators which enables us to differentiate
people on the basis of performance, potential and
criticality in-order to provide a competitive advantage
in the industry.
The Total Reward Philosophy at Vedanta is built on
the core objective of driving ‘Pay for Performance’
culture. The appropriate mix of components of the
Executive Compensation aim to drive the short as
well as long-term interests of the Company and its
shareholders through strong emphasis on operational
/ financial fundamentals, social license to operate
and business sustainability, strategic objectives of
resource and reserve creation and wealth creation
for stakeholders.
Timely risk assessment of compensation practices
is done in addition to review of all components
of compensation for consistency with stated
compensation philosophy:
− Financial analysis & simulation of the long-
term cost of reward plans and their Return on
Investments (ROI).
− Provision of claw back clause as part of the ground
rules of our long-term incentive scheme for all
our leaders.
− Upper limits and caps defined on incentive pay-outs
in the event of over-achievement of targets to avoid
windfall gains.
We do not encourage provision of excessive perks or
special clauses as part of employee contract such as:
− No provision of Severance Pay in Employment
contracts of Whole-Time Directors (WTD),
KMP & SMP.
− No Tax Gross up done for executives except for
expatriates as part of tax equalisation
− No provision of unearned Incentives/unvested
Stock or Cash Options
We continue to corroborate the Internal Pay Equity
Principles, sustained attention to equity grant practices
and maintain checks & balances to confirm that the
practices are legally and ethically compliant with
International, national and state/regional laws.
Prevention of Sexual Harassment at Workplace
The Company has zero tolerance for sexual harassment
at workplace and has adopted a Policy on Prevention,
Prohibition and Redressal of Sexual Harassment at
Workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the Rules
thereunder for prevention and redressal of complaints
of sexual harassment at workplace.
As part of Vedanta Group, your Company is an equal
opportunity employer and believes in providing
opportunity and key positions to women professionals.
The Group has endeavoured to encourage women
professionals by creating proper policies to tackle
issues relating to safe and proper working conditions
and create and maintain a healthy and conducive
work environment that is free from discrimination.
This includes discrimination on any basis, including
gender, as well as any form of sexual harassment.
During the period under review, three complaints were
received and resolved. Your Company has constituted
Internal Complaints Committee (ICC) for various business
divisions and offices, as per the requirements of the
Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013.
RISK MANAGEMENT
Risk Management
The businesses are exposed to a variety of risks, which
are inherent to a global natural resources organisation.
The effective management of risk is critical to support
the delivery of the Group’s strategic objectives.
Risk management is embedded in the organisation’s
processes and the risk framework helps the organisation
meet its objectives by aligning operating controls with
the mission and vision of the Group set by the Board.
As part of our governance philosophy, the Board has a
Risk Management Committee to ensure a robust risk
management system. The details of Committee and its
terms of reference are set out in the Corporate Governance
Report, which forms part of this Annual Report.
172
173
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports With effect from June 6, 2020, the Risk Management
Committee has been consolidated with the Audit
Committee comprising of only Independent Directors
ensuring robust risk management systems in place with
valued feedback of Independent Directors being on the
Committee.
Our risk-management framework is designed to be
simple, consistent and clear for managing and reporting
risks from the Group’s businesses to the Board. Our
management systems, organisational structures,
processes, standards and code of conduct together
form the system of internal controls that govern how we
conduct business and manage associated risks. We have a
multi-layered risk management framework to effectively
mitigate the various risks, which our businesses are
exposed to in the course of their operations.
The Audit & Risk Management Committee aids the Board
in the risk management process by identification and
assessment of any changes in risk exposure, review of risk
control measures and by approval of remedial actions,
where appropriate. The Committee is in turn supported
by the Group Risk Management Committee which helps
the Audit & Risk Management Committee in evaluating
the design and operating effectiveness of the risk
mitigation programme and the control systems.
Major risks identified by businesses and functions are
systematically addressed through mitigating actions.
Risk officers have also been formally nominated at
operating businesses, as well as at Group level, to develop
the risk-management culture within the businesses.
The Risk Management Policy of the Company revised in
2019 covers cyber security as well.
For a detailed risk analysis, you may like to refer to the
risk section in the Management Discussion and Analysis
Report which forms part of this Annual Report.
Cyber Security
The Group has a structured framework for cyber security.
Each of the Business Units has a CIO (Chief Information
Officer) with suitable experience in Information / Cyber
security. Every year, cyber security review is carried out
by IT experts (belonging to IT practices of Big-4 firms).
Vulnerability Assessment and Penetration Testing (VAPT)
review is also carried out by cyber experts. This practice
has been in place for several years now and has helped
in strengthening the cyber security environment in the
group. At the same time, the external environment on
cyber security is continuously evolving. The respective
CIOs are responsible for ensuring appropriate controls
are in place to address the emerging cyber risks.
Internal Financial Controls
Your Board has devised systems, policies and procedures/
frameworks, which are currently operational within the
Company for ensuring the orderly and efficient conduct
of its business, which includes adherence to policies,
safeguarding its assets, prevention and detection of
frauds and errors, accuracy and completeness of the
accounting records and timely preparation of reliable
financial information. In line with best practices, the Audit
& Risk Management Committee and the Board reviews
these internal control systems to ensure they remain
effective and are achieving their intended purpose.
Where weaknesses, if any, are identified as a result of the
reviews, new procedures are put in place to strengthen
controls. These controls are in turn reviewed at regular
intervals.
The systems/frameworks include proper delegation
of authority, operating philosophies, policies and
procedures, effective IT systems aligned to business
requirements, an internal audit framework, an ethics
framework, a risk management framework and adequate
segregation of duties to ensure an acceptable level of
risk. Documented controls are in place for business
processes and IT general controls. Key controls are
tested by entities to assure that these are operating
effectively. Besides, the Company has also adopted an
SAP GRC (Governance, Risk and Compliance) framework
to strengthen the internal control and segregation of
duties/ access.
The Company has documented Standard Operating
Procedures (SOP) for procurement, project/expansion
management capital expenditure, human resources, sales
and marketing, finance, treasury, compliance, Safety,
Health and Environment (SHE), and manufacturing.
The Group’s internal audit activity is managed through
the Management Assurance Services (‘MAS’) function. It
is an important element of the overall process by which
the Audit & Risk Management Committee and the Board
obtains the assurance on the effectiveness of relevant
internal controls.
The scope of work, authority and resources of MAS are
regularly reviewed by the Audit & Risk Management
Committee. Besides, its work is supported by the
services of leading international accountancy firms.
The Company’s system of internal audit includes covering
monthly physical verification of inventory, a monthly
review of accounts and a quarterly review of critical
business processes. To enhance internal controls, the
internal audit follows a stringent grading mechanism,
focusing on the implementation of recommendations
of internal auditors. The internal auditors make periodic
presentations on audit observations, including the status
of follow-up to the Audit & Risk Management Committee.
The Company is also required to comply with the
Sarbanes Oxley Act Sec 404, which pertains to Internal
Controls over Financial Reporting (ICOFR). Through
the SOX 404 compliance programme, which is aligned
to the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) framework, the Audit &
Risk Management Committee and the Board also gains
assurance from the management on the adequacy and
effectiveness of ICOFR.
In addition, as part of their role, the Board and its
Committees routinely monitor the Group’s material
business risks. Due to the limitations inherent in any
risk management system, the process for identifying,
< BACK TO CONTENTS
evaluating, and managing the material business risks is
designed to manage, rather than eliminate risk. Besides
it created to provide reasonable, but not absolute
assurance against material misstatement or loss.
Since the Company has strong internal control systems
which are further strengthened by periodic reviews
as required under the Listing Regulations and SOX
compliance by the Statutory Auditors, the CEO and
CFO recommend to the Board continued strong internal
financial controls.
There have been no significant changes in the Company’s
internal financial controls during the year that have
materially affected or are reasonably likely to materially
affect its internal financial controls, other than as
mentioned in the “Audit Report and Auditors” section to
this report.
There are inherent limitations to the effectiveness of any
system of disclosure controls and procedures, including
the possibility of human error and the circumvention or
overriding of the controls and procedures. Accordingly,
even effective disclosure controls and procedures can
only provide reasonable assurance of achieving their
objectives. Moreover, in the design and evaluation of
the Company’s disclosure controls and procedures,
the management was required to apply its judgement
in evaluating the cost-benefit relationship of possible
controls and procedures.
Further, the Audit & Risk Management Committee
annually evaluates the internal financial controls for
ensuring that the Company has implemented robust
systems/framework of internal financial controls viz.
the policies and procedures adopted by the Company
for ensuring the orderly and efficient conduct of its
business, including adherence to Company’s policies, the
safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of
the accounting records, and the timely preparation of
reliable financial information.
Vigil Mechanism
The Company has in place a robust vigil mechanism for
reporting genuine concerns through the Company’s
Whistle-Blower Policy. As per the Policy adopted by various
businesses in the Group, all complaints are reported to the
Director – Management Assurance, who is independent
of operating management and the businesses. In line
with global practices, dedicated e-mail IDs, a centralised
database, a 24X7 whistle-blower hotline and a web-based
portal have been created to facilitate receipt of complaints.
All employees and stakeholders can register their integrity
related concerns either by calling the toll-free number or
by writing on the web-based portal which is managed by an
independent third party. The hotline provides multiple local
language options. All cases reported as part of whistle-
blower mechanism are taken to their logical conclusion
within a reasonable timeframe. After the investigation,
established cases are brought to the Group Ethics
Committee for decision-making. All Whistle-Blower cases
are periodically presented and reported to the Company’s
Audit & Risk Management Committee. The details of this
process are also provided in the Corporate Governance
Report and the Whistle-Blower Policy is available on
the Company’s website at www.vedantalimited.com.
Management Discussion and Analysis
The Management Discussion and Analysis Report for the
year under review, as specified under Regulation 34 read
with Schedule V of Listing Regulations is presented in a
separate section, forming part of this Annual Report.
INNOVATION, DIGITALISATION AND
TECHNOLOGY
Innovation, Digitalisation & Technology
As Vedanta looks to continue to build on its strategic
vision – the Group and senior leadership have crafted an
aggressive plan to instill Digital innovation in all aspects of
the business. It is the group’s ambition to leverage cutting
edge technology and partners to drive best in class
operations and sustainability. In this connection – your
Company has greenlit multiple flagship programmes to
not only drive the overall transformation journey, but also
to build the internal “Digital muscle” to sustain the gains
of the transformation.
At Vedanta we are going for a group-wide digital
transformation, Project Pratham with the vision of
transforming Vedanta Group into a truly digital-first
organisation and making digital the new way of working.
Project Pratham is delivering digital transformation
across our Mining & Metals and Oil & Gas business with a
focus on driving asset optimisation, production volume
growth, operating cost reductions, enhanced safety and
improve ease of doing business. The objective of the
programme is to deliver a combination of tangible value
in the form of EBITDA increase and other intangible gains
such as enhanced safety and security, sustainability,
better governance, and improved employee productivity.
To sustain this change, a clear roadmap is also drawn for
augmenting capabilities in the areas of Digital, Smart
Manufacturing, Analytics, Automation and Cyber security.
To engage with innovative start-ups and leverage their
technological capabilities and agility - Vedanta Spark
programme was launched in Oct’20. The programme
has attracted 1,300 startups with more than a million
impressions across social media platforms. With the
objective of solving key problems across business units,
Vedanta is looking to partner with top digital and core
tech startups.
In addition, the Company has launched group-wide idea
generation competition – Pratham Digtial Olympics, to
incentivise grass-root level innovations and bring digital
cultural change.
Policy and Advocacy
Vedanta believes in sustainable and equitable
development of natural resource sector. While engaging
in public policy and regulatory matters, our Advocacy
efforts evolve around our core values. Our Company
participates in stakeholder consultations on economic
reforms, raw material & energy security, taxation,
environmental development, business continuity, ease
174
175
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports of doing business, sustainable business practices and
other policy and regulatory matters which are related to
our business in a responsible manner. We are associated
with various industry associations and chambers for
submission of our representations to relevant ministries,
government departments and regulatory bodies both at
the Centre and State levels.
Research and Development
Vedanta has been an aggressive leader in terms of
adopting new technologies and improving processes and
standards. Hindustan Zinc Limited’s (HZL) Technology
centre works in the interface between science and
business that offers opportunity to process innovative
ideas to technology. Principal focus area includes process
improvements, development work for future growth,
new technology development and adaptation, minor
metal recovery and waste to wealth initiatives. R&D
team has implemented/finalised projects on recovery
improvement, cost reduction, process optimisation
and evaluation of advance technologies. Some of the
key projects at mills are: alternative non-hazardous and
cost effective reagent for nigrosine, improvement in
Zawar recovery by process audits & individual ore type
characterisation, Geo-Metallurgy study for SK Mine
and RA Mine on advance Drill Cores for Metallurgical
characterization and completed feasibility study for 3%
Pb-Ag recovery improvement by Pb regrinding at RAM &
Derrick screen at Zawar.
Hindustan Zinc achieved a big milestone, being granted
two US patents for two technologies developed in-house
by state of art R&D centre – Zntech. The two patents are:
1.
2.
Technology for manufacturing paver blocks from
process waste material.
Method for production of potassium antimony
tartrate by utilising antimony residues of smelter.
In Aluminium and Power Business, Vedanta has entered
into the partnership with three research institutes
namely CSIR-National Metallurgical Laboratory
(NML), Jamshedpur, Institute of Minerals and Materials
Technology (IMMT), Bhubaneswar, and Jawaharlal Nehru
Aluminium Research, Development & Design Centre
(JNARDDC), Nagpur. As part of this, all three research
institutes shall work together to develop technologies for
bauxite residue utilisation, like red mud beneficiation for
REE enrichment, recovery of alumina values, recovery of
iron values and process for extraction and separation of
Titanium and REEs (La, Ce, Y, Sc).
Vedanta Aluminium has one of the finest and
best-in-class R&D setups among peers in the aluminium
value chain. We are already collaborating with customers
in the auto industry to develop customised aluminium
alloys and products, catering to their objective of
achieving desired light weighting for EVs and hybrids
of the future. Case in point, Vedanta pioneered PFAs
(Primary Foundry Alloys) for the Indian market. We were
the first in India to supply PFA to the domestic auto sector
and until we did so, the country’s entire PFA demand was
being met through imports, even though India has the
world’s second-largest aluminium production capacity.
176
In Cairn, we continue to operate our fields in a digital
manner through unmanned well pads with remote access
which drastically reduces human exposure to risk and
increases operational efficiency. Centralised control
rooms, remotely activated surface facilities and digital
surveillance platform (BabelFish) has allowed high uptime
in operation of Mangala Processing Terminal, over 500
wells spread across many acres, centralised polymer
processing farm and the world’s largest continuously
heated pipeline. Our other businesses also continue to
lead the industry in terms of R&D. Copper for example
has created Pure Tellurium Extraction to produce copper
anodes (99.5% pure) and Ferric Sulphate Extraction from
Copper Slag which is our by-product. In Iron Ore Business,
Value Added Business team had developed a customised
product, Sesa Special Grade (SSG) for a niche segment
(otherwise being imported by customers) by producing
high purity pig iron through blast furnace route. The Value
Added Business team had also come up with an innovative
idea of producing Foundry Grade Pig Iron outside the
blast furnace using Ferro Silicon which otherwise normally
gets produced in blast furnace by compromising on
productivity & high fuel rate. Some other examples are
automation of the charging plate insertion mechanism,
employee care applications, automatic trip counting and
dynamic allocation of hauling units and GPS controlled
speed tracking system in dispatch trucks. Our businesses
continue their tremendous work in these areas to make the
group more sustainable.
INVESTOR RELATIONS
Your Company has an active Investor Relations (IR)
function which continuously strives for excellence by
engaging with international and domestic investors. Your
Company benchmarks global IR standards and aims at
exceeding them. The Company proactively seek feedback
from all stakeholders throughout the year.
Shareholder engagement
The Investor Relations team takes both formal and informal
approach to engage with shareholders. The team interacts
with investors at various platforms demonstrating
consistent and clear communication between internal and
external parties. Some of these forums include quarterly
earnings calls, hosting Investor/Analyst Day, site visits for
key businesses, one-on-one as well as group meetings
and participation in sell-side conferences. The leadership
teams from various businesses along with promoters of
the Company as well as senior management consisting
of the CEO and the CFO are also invited as required for
some of these engagements. These proactive investor
engagement activities and openness of senior leaders to
interact with investors and analysts is well appreciated by
all stakeholders.
Shareholder communication
Shareholders can contact us any time through our
Investor Relations team, with contact details available
online at www.vedantalimited.com. Shareholder and
analyst feedbacks are shared in a timely and structured
manner with the Board through the Chairman, the
Senior Independent Director, the CEO, the CFO, and the
< BACK TO CONTENTS
Company Secretary. Ongoing communication with our
stakeholders keeps the board and senior management
abreast of their views and helps to gain insight.
Shareholder disclosures
Vedanta has set standards through the detailed and
transparent disclosures on the Company’s operational
and financial performance. Your Company had created
its first Integrated Report (for Financial Year 2018) and
continued thereafter. The Company has also been
conferred with the prestigious LACP and ICAI award
for its FY 2020 Integrated report. Having a diverse
shareholder base and multiple business verticals,
demands enormous efforts from an IR function to
manage investors, sell-side analysts as well as ensuring
a timely and complete business update is provided to
all. As a key milestone in this continuing endeavour, your
Company created a digital interactive microsite on the
corporate website to provide an interactive experience
beyond what is available in the annual and quarterly
results materials.
Key Initiatives with respect to various stakeholders
As a diligent driver of all-encompassing stakeholder
growth, the Company undertakes significant initiatives with
respect to its employees, shareholders, investors, lenders,
suppliers, customers, civil society, local community, and
Government authorities striving to accelerate its focus
on HSE and sustainability. These initiatives are enlisted
with detailed specifics in the Integrated Report section of
the Annual Report. Along with the Integrated Report, the
Company also publishes the Sustainability Report which
details the Company’s initiatives in the ESG space for a
holistic overview to investors.
CORPORATE GOVERNANCE
Report on Corporate Governance
Your Company is committed to maintaining the highest
standards of corporate governance in the management
of its affairs and ensuring its activities reflect the
culture we wish to nurture with our colleagues and other
stakeholders.
As part of commitment to the various stakeholders,
the Company follows global best practices. To meet
its obligations towards its shareholders and other
stakeholders, the Company has a corporate culture of
conscience and consciousness; integrity, transparency
and accountability for efficient and ethical conduct of
business.
Our continued focus on improving the corporate
governance mechanisms and on enhancing the efficiency
curve, transparency and accountability of our operations
will enable us to lead the way for the industry.
Our disclosures seek to attain the best practices in
international corporate governance and we constantly
endeavour to enhance long-term shareholder value. Our
Corporate governance report for fiscal 2021 forms part of
this Annual Report.
Directorate, Key Managerial Personnel and Senior
Management Personnel
The Board of Directors of the Company provide
entrepreneurial leadership and plays a crucial role
in providing strategic supervision, overseeing the
management performance, and long-term success of the
Company while ensuring sustainable shareholder value.
Driven by its guiding principles of Corporate Governance,
the Board’s actions endeavour to work in best interest of
the Company.
The Directors hold a fiduciary position, exercises
independent judgement and plays a vital role in the
oversight of the Company’s affairs. Our Board represents
a tapestry of complementary skills, attributes,
perspectives and includes individuals with financial
experience and a diverse background.
In line with the recommendation of SEBI and our
relentless endeavour to adhere to the global best
practices, the Company is chaired by Mr. Anil Agarwal,
Non-Executive Chairman effective April 1, 2020.
During the year, your Company welcomed Ms. Padmini
Somani and Mr. Dindayal Jalan as an Independent
Director of the Company effective February 5, 2021 and
April 1, 2021 respectively. In the opinion of the Board:
Ms. Somani has rich experience in the philanthropy
and development space for over 20 years and holds
highest standards of integrity and has also been
recognised for her work in youth education, health and
skilling programmes with vulnerable and marginalised
populations. Based on Ms. Somani’s prolific skill set and
experience in corporate social responsibility, your Board
believes that Ms. Somani will be an incredible asset to the
Board as we remain committed to reinvest in the social
good of our neighbourhood communities and nation; and
Mr. Dindayal Jalan has rich and diverse experience
of over 40 years in business operations, financial
management, corporate negotiations, financial
control, business planning, due diligence, business
development, treasury, capital raising, business
restructuring, investor relations, commercial,
taxation, people development and strategic planning
and is a person of integrity. With bringing good blend
of technical and financial experience, your Board
believes that Mr. Jalan’s induction will broaden the
Board’s experience, bringing in complementary skills
and expertise in diverse areas.
Accompanying Ms. Somani’s and Mr. Jalan’s detailed
profile provided in the earlier section of the Annual
Report, this statement forms a part of the Directors’
Report in accordance with the Companies (Accounts)
Amendment Rules, 2019 notified to hold effect from
December 1, 2019.
Mr. Sunil Duggal, appointed as Interim Chief Executive
Officer and Key Managerial Personnel of the Company
effective April 06, 2020 and CEO of the Company
for a fixed term of 3 years w.e.f. August 01, 2020 has
177
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports been appointed as Whole-Time Director & CEO and
KMP of the Company effective from April 25, 2021 till
July 31, 2023. Mr. Duggal brings with him over 36 years
of experience of leading high-performance teams
and more than 20+ years in leadership positions. He is
known for his ability to calmly navigate through tough
and challenging times, nurture and grow a business,
evaluate opportunities & risks and successfully
drive efficiency & productivity whilst reducing costs
& inefficiencies and deliver innovative solutions to
challenges. Brief Profile of Mr. Duggal is provided in earlier
section of this Annual Report and can be accessed at
www.vedantalimited.com.
The Key Managerial Personnel and Senior Management
Personnel, similarly, comprises of multifarious leaders
with each member bringing in their key proficiency in
different areas aligned with our business and strategy.
A comprehensive update on the change in the
Directorate, Key Managerial Personnel and Senior
Management Personnel of the Company along with
the directorships held in other Companies, their skills
and expertise have been explicated in the Corporate
Governance report forming part of this Annual Report.
Director Retiring by Rotation
As per the provisions of Companies Act, 2013,
Mr. Anil Agarwal (DIN: 00010883), Non-Executive
Director designated as Chairman of the Company, is
liable to retire by rotation at the ensuing AGM and being
eligible, offers himself for re-appointment. Based on
the performance evaluation and recommendation of
the Nomination & Remuneration Committee, Board
recommends his re-appointment.
Brief Profile and other related information seeking
re-appointment is provided in the AGM Notice.
Board and Committees
The Board has overall responsibility for establishing
the Company’s purpose, values and strategy to deliver
the long-term sustainable success of the Company and
generate value for shareholders. The Board places great
importance on ensuring these key themes continue to
be appropriate for the businesses and markets in which
we operate around the world, while being aligned with
our culture.
The Board is supported by the activities of each of
the Board Committees which ensure the right level of
attention and consideration are given to specific matters.
Accordingly, the Board has established Committees to
assist it in exercising its authority.
Each of the Committees has terms of reference under
which authority is delegated by the Board.
At present, the Company has the following Board
Committees which ensures greater focus on specific
aspects of Corporate Governance and expeditious
resolution of issues of governance as and when they arise.
An all-embracing update on the Board, its committees,
their composition, terms and reference, meetings held
during FY 2021 and the attendance of each member is
detailed in the Corporate Governance Report.
< BACK TO CONTENTS
Statutory Board Committees
Audit & Risk
Management
Committee
Nomination &
Remuneration
Committee
Corporate Social
Responsibility
Committee
Stakeholders
Relationship
Committee
Other Committees
Sustainability
Committee
Share and Debenture
Transfer Committee
Committee of
Directors
1.
2.
With effect from June 6, 2020, the Risk Management Committee has been consolidated with the Audit Committee comprising of only
Independent Directors.
Effective May 16, 2020, Finance Standing Committee has been consolidated with the Committee of Directors.
Board Effectiveness
Familiarization Program for Board Members
Your Company has developed comprehensive induction processes for our new Board members which aim to provide a
broad introduction to the Group and enable new directors to contribute to the Board’s deliberations from the outset.
The details of the familiarization programme and process followed are provided in the Corporate Governance Report
forming part of this Annual Report and can also be accessed on the website of the Company at www.vedantalimited.
com.
Annual Board Evaluation
The Board is committed to transparency in assessing the performance of Directors. The Board conducts annual
evaluations of its performance, the performance of its Committees, the Chair, CEO, Directors and the governance
processes that support the Board’s work.
As a part of governance practice, the Company, had engaged a leading consultancy firm, to conduct the Board
Evaluation Process which was facilitated through an online secured module ensuring transparent, effective and
independent of the management.
The evaluation parameters and the process have been explained in the Corporate Governance Report.
Board Diversity and Inclusion
The Board sets the tone for inclusion and diversity across the Group and believes it is important to have an appropriate
balance of skills, knowledge, experience and diversity on the Board and at senior management level to ensure good
decision-making. It recognises the need to create conditions that foster talent and encourage all colleagues to
achieve their full potential. A diverse Board with a range of views enhances decision-making which is beneficial to the
Company’s long-term success and in the interests of Vedanta’s stakeholders.
Additional Details on the Board Diversity and the key attributes of the Board Members are explicated in the Corporate
Governance Report forming part of this Annual Report.
Policy on Directors’ Appointment & Remuneration
The Nomination & Remuneration Policy adopted by the Board on the recommendation of the Nomination &
Remuneration Committee enumerates the criteria for assessment and appointment/re-appointment of Directors, Key
Managerial Personnel (KMP) and Senior Management Personnel (SMP) on the basis of their qualifications, knowledge,
skill, industrial orientation, independence, professional and functional expertise among other parameters with no bias
on the grounds of ethnicity, nationality, gender or race or any other such discriminatory factor.
178
179
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports The Policy also sets out the guiding principles for the
compensation to be paid to the Directors, KMP and
SMP; and undertakes effective implementation of Board
familiarisation, diversity, evaluation and succession
planning for cohesive leadership management.
With your Company continuing to comply with the Policy
in true letter and spirit, the complete Policy is reproduced
in full on our website at www.vedantalimited.com and
a snapshot of the Policy is elucidated in the Corporate
Governance Report.
Observance of the Secretarial Standards
The Directors state that proper systems have been
devised to ensure compliance with the applicable
laws. Your company adheres and complies with the
applicable Secretarial Standards issued by the Institute
of Companies Secretaries of India (ICSI).
Independent Directors Statement
The Company has received declaration from all the
Independent Directors that they continue to meet
the criteria of independence as provided under the
Companies Act and Listing Regulations and comply with
the Code for Independent Directors as specified under
Schedule IV of the Act.
The Directors have also confirmed that they are not
aware of any circumstance or situation, which exists
or may be reasonably anticipated, that could impair
or impact their ability to discharge their duties with
an objective independent judgement and without any
external influence.
Further, in compliance with Rule 6(1) and 6(2) of the
Companies (Appointment and Qualification of Directors)
Rules, 2014, all Independent Directors of the Company
have registered themselves with the Indian Institute of
Corporate Affairs (IICA).
Annual Return
In terms of provisions of Section 92, 134(3)(a) of the
Companies Act, 2013 read with Rule 12 of Companies
(Management and Administration) Rules, 2014, the
Annual Return in Form MGT-7 for the financial year ended
March 31, 2021 is put up on the Company’s website and
can be accessed at www.vedantalimited.com.
Audit Reports and Auditors
Audit Reports
The Statutory Auditors have issued unmodified
opinion on the financial statements of the Company
as of and for the year ended March 31, 2021. Their
report on the Internal Financial Controls, contains
a qualification, related to the effectiveness of the
Company’s internal financial controls over financial
reporting as at March 31, 2021 with respect to
benchmarking the terms and authorisation of loans
and guarantees between itself or its subsidiaries with
controlling shareholders and their affiliates. In the
said report, the Statutory Auditors have considered
the material weakness identified in determining the
nature, timing and extent of audit tests applied in
their audit of the March 31, 2021, financial statements
of the Company, and concluded that the material
weakness does not affect their opinion on the financial
statements of the Company.
The management’s response is as follows:
During the year, the Company has updated its policies
regarding benchmarking the terms and authorisations
for such related party transactions. The Board will
continue to monitor compliance with such policies.
However, the material weakness described above did
not result in material misstatements to the financial
statements.
The Statutory Auditors’ report for FY 2020-21 does
not contain any other qualification, reservation or
adverse remarks which calls for any explanation
from the Board of Directors. The Auditors’ report is
enclosed with the financial statements in the Annual
Report.
The Secretarial Auditors’ Report for FY 2020-21
does not contain any qualification, reservation or
adverse remark. The report in form MR-3 along with
Annual Secretarial Compliance Report is enclosed as
Annexure D to the Directors’ Report.
Auditors Certificates
As per the Listing Regulations, the auditors’ certificate
on corporate governance is enclosed as an Annexure
to the Corporate Governance Report forming part of
the Annual Report. The Certificate does not contain
any other qualification, reservation or adverse remark
except as mentioned in the report.
A certificate from Company Secretary in Practice
certifying that none of the directors on the Board
of the Company have been debarred or disqualified
from being appointed or continuing as directors of
companies by the SEBI / Ministry of Corporate Affairs
or any such statutory authority forms part of the
Corporate Governance Report.
< BACK TO CONTENTS
Auditors
Statutory
Auditors
M/s S.R. Batliboi & Co. LLP, Chartered Accountants (Firm Registration No. 301003E / E300005)
had been appointed as the Statutory Auditors of the Company till the conclusion
of 56th Annual General Meeting, to be held in calendar year 2021.
The Auditors have confirmed that they are not disqualified from being re-appointed as
Statutory Auditors of the Company.
The report of the Statutory Auditors along with notes to financial statements is enclosed
to this Report. The Notes on financial statements referred to in the Auditors’ Report are
self-explanatory and do not call for any further comments.
The auditors have also furnished a declaration confirming their independence as well as
their arm’s length relationship with the Company. The Audit & Risk Management Committee
reviews the independence and objectivity of the auditors and the effectiveness of the
audit process.
The Statutory Auditors were present at the last AGM of the Company.
Secretarial
Auditors
M/s Chandrasekaran & Associates (Firm Registration No. 002500), Practicing Company
Secretaries had been appointed by the Board to conduct the secretarial audit of the Company
for financial year 2020-21.
The Company had received a certificate confirming their eligibility and consent to act as the
Auditors.
The Secretarial Audit Report for the financial year ended March 31, 2021 forms part of this
report and confirms that the Company has complied with the provisions of the Act, Rules,
Regulations and Guidelines and that there were no deviations or non-compliances.
Pursuant to SEBI circular no. CIR/CFD/CMO1/27/2019 dated February 8, 2019, the Company
has also undertaken an audit for all applicable compliances as per the Listing Regulations
and circular guidelines issued thereunder. The Annual Secretarial Compliance Report for the
financial year 2020-21 has also been submitted to the Stock Exchanges within the stipulated
timeline.
The Secretarial Auditors were also present at the last AGM of the Company.
Cost Auditors
M/s Shome and Banerjee and M/s Ramnath Iyer & Co., Cost Accountants, had been appointed
by the Board to conduct the audit of cost records of the Oil & Gas Business and other Business
segments of the Company respectively for the financial year 2020-21.
M/s Ramnath Iyer & Co., Cost Accountants were nominated as the Lead Cost Auditors.
The Company had received a certificate confirming their eligibility and consent to act as the
Auditors.
The cost accounts and records of the Company are duly prepared and maintained by the
Company as required under Section 148(1) of the Act pertaining to cost audit.
Internal
Auditors
M/s Deloitte Haskins & Sells, LLP had been appointed as the Internal Auditors of the Company
for Financial Year 2020-21 to conduct the Internal Audit on the basis of detailed Internal
Audit Plan.
The Company has an independent in-house Management Assurance Services (MAS) team
to manage the group’s internal audit activity and that functionally reports to the Audit & Risk
Management Committee.
180
181
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Reporting of Fraud by Auditors
During the reporting year, under Section 143(12)
of Companies Act, 2013, none of the Auditors of
the Company have reported to the Audit & Risk
Management Committee of the Board any instances of
fraud committed against the Company by its officers
or employees.
Legal, Compliance, Ethics and Governance Function
Through its concerted efforts to generate value while
keeping integrity at the forefront, the Legal function of
your Company is a valued partner in providing regulatory
support and gauging the viability of strategic assistance
for business partnership and expansion. It ensures
advisory and compliance services pertaining to existing
regulations and legislative developments for facilitating
business agenda in the areas of effective claims and
contract management, mergers and acquisitions, dispute
resolution, litigation and adherence to competition,
business ethics and governance.
With the aim to ensure smooth operations and safeguard
interests of your Company for business growth and
sustenance in an evolving, ambiguous and complex
environment, the function continues to focus on
presenting areas of opportunities; mitigating risks;
providing proactive assistance to other functions and
departments; and bringing about policy changes based on
persistent interaction with various Government bodies
and industrial associations like CII and FICCI.
As newer technologies continue to transform the market,
your Company ensures adeptness in mechanisms
to safeguard the data security and privacy of our
stakeholders with enhanced legal and security standards.
Simultaneously, to meet the growing business needs,
the Legal function continues to seek and identify
technological opportunities while harnessing existing
know-how to streamline compliance frameworks,
litigation management and conduct online ethics
awareness training.
Our organisational values and principles are made
applicable to all our employees through our Code of
Business Conduct and Ethics. In a bid to create a better
understanding of its practical implications, the Legal
function conducts an annual online ethics training module
to necessitate all employees to mandatorily embrace the
values and principles embodied as a part of the afore-
mentioned Code. Additionally, the function drives an
Ethics Compliance Month initiative for raising awareness
by conduct of employee trainings in areas of ethical
concern such as insider trading, prevention of sexual
harassment, anti-bribery, anti-corruption and anti-trust
laws through use of interactive learning tools.
Through our Supplier Code of Conduct, we also ensure
that third parties, including their employees, agents and
representatives who have a business relationship with
your Company, are bound by industry standards as well
as applicable statutory requirements concerning labour
and human rights; health, safety and environment; and
business integrity.
OTHER DISCLOSURES
Related Party Transactions
Your Company has in place a Policy on Related Party
Transaction (RPT) (RPT Policy) formulated in line with the
provision of the Companies Act and Listing Regulations.
The Policy may be accessed at www.vedantalimited.com.
The Policy sets out the philosophy and processes to
be followed for approval and review of transactions
with Related Party and intends to ensure that proper
reporting, approval and disclosure processes are in place
for all transactions with Related Parties.
A detailed landscape of all RPTs specifying the nature,
value, and terms and conditions of the transaction is
presented to the Audit & Risk Management Committee.
Also, a Related Party Transactions Manual-Standard
Operating Procedures has been formulated to identify
and monitor all such transactions.
During the fiscal 2020-21, all the contracts/
arrangements/ transactions entered into by the
Company with the related parties were in the ordinary
course of business and on an arm’s length basis and were
in compliance with the provisions of the Companies Act
and Listing Regulations other than those mentioned in
the Annexure IV of the Report on Corporate Governance
forming part of the Annual Report.
All Related Party Transactions are subjected to
independent review by a reputed accounting firm to
establish compliance with the requirements of Related
Party Transactions under the Companies Act, 2013 and
Listing Regulations.
Further, there have been no materially significant
RPTs during the year pursuant to the provisions of the
Companies Act and Listing Regulations. Accordingly, the
disclosure required u/s 134(3)(h) of the Act in Form AOC-2
is not applicable to your Company.
Share Capital and its Evolution
The Authorised Share Capital of the Company is
`74,120,100,000 divided into 44,020,100,000 number of
equity shares of `1/- each and 3,010,000,000 Preference
Shares of ` 10/- each. There was no change in the capital
structure of the Company during the period under review.
The details of share capital as on March 31, 2021 is
provided below:
Particulars
Authorised Share Capital
Paid-up Capital
Listed Capital
Shares under Abeyance pending allotment
D
Amount (
)
74,120,100,000
3,717,504,871
3,717,196,639
3,08,232
*Out of the total paid-up capital of 3,717,504,871 equity shares,
308,232 equity shares are pending for allotment and listing and
hence kept under abeyance since they are sub-judice and further
160,903,244 equity shares are held in the form of 40,225,811 ADSs
as on March 31, 2021.
< BACK TO CONTENTS
The details of the Capital Evolution has been provided on
the Company’s website and can be accessed at
www.vedantalimited.com.
Subsidiaries, Joint Ventures and Associate Companies
Your Company has 49 subsidiaries (16 direct and
33 indirect) as at March 31, 2021, as disclosed in the notes
to accounts.
During the year and till date the following changes have
taken place in subsidiary companies:
The name of a Subsidiary Company changed from
Electrosteel Steels Limited to “ESL Steel Limited”
with effect from September 26, 2020.
The Company acquired Ferro Alloys Corporation
Limited (FACOR) on September 21, 2020 under IBC as
wholly-owned subsidiary.
Consequent to acquisition of FACOR, subsidiaries of
FACOR – Facor Power Limited (FPL) and Facor Realty
and Infrastructure Limited (FRIL) become indirect
subsidiaries of the Company.
Australia Subsidiary – Cairn Energy India Pty Limited
got deregistered w.e.f. August 26, 2020.
Scotland subsidiaries – Cairn Energy Discovery Limited
and Carin Exploration (No. 2) Limited dissolved w.e.f.
September 22, 2020.
Application for voluntary liquidation filled for Mauritius
entities – CIG Mauritius Holdings Private Limited and
CIG Mauritius Private Limited, confirmation awaited.
Cairn South Africa (Pty) Ltd has been deregistered
effective from April 06, 2021 and the deregistration of
tax registration of the entity is under process.
Sterlite (USA) Inc. is under process of dissolution.
Killoran Lisheen Finance Limited and Vedanta
Exploration Ireland Limited have been voluntarily
struck off w.e.f. March 02, 2021.
There has been no material change in the nature of the
business of the subsidiaries.
As at March 31, 2021, the Company has 8 associate
companies and joint ventures.
Associate Companies and Joint Ventures:
Gaurav Overseas Private Limited
RoshSkor Township (Pty) Ltd
Raykal Aluminium Company Private Limited
Goa Maritime Private Limited
Madanpur South Coal Company Limited
Rampia Coal Mines and Energy Private Limited
Rosh Pinah Health Care (Proprietary) Limited
Gergarub Exploration and Mining (Pty) Limited
As required under Listing Regulations, the Consolidated
Financial Statement of the Company and its subsidiaries
and joint ventures, prepared in accordance with Ind AS
110 issued by the Institute of Chartered Accountants of
India, form part of the Annual Report and are reflected in
the Consolidated Financial Statement of the Company.
During the year, the Board of Directors have reviewed
the affairs of the subsidiaries. Pursuant to Section 129(3)
of the Companies Act, 2013 (the Act), a statement
containing the salient features of the financial statement
of the subsidiary and associate companies is attached to
the financial statement in Form AOC-1. The statement
also provides details of performance and financial
position of each of the subsidiaries and their contribution
to the overall performance of the Company.
In accordance with Section 136 of the Act, the audited
Standalone and Consolidated financial statements of
the Company along with relevant notes and separate
audited accounts of subsidiaries are available on the
website of the Company at www.vedantalimited.com.
Copies of the financial statements of the Company and
of the subsidiary companies shall be made available upon
request by any member of the Company. Additionally,
these financial statements shall also be available for
inspection by members on all working days during
business hours at the Registered Office of the Company.
Material Subsidiaries
The Company has adopted a policy on determination of
material subsidiaries in line with the Listing Regulations.
The policy aims to determine the Material Subsidiaries
and Material Unlisted Indian Subsidiaries of the Company
and to provide the governance framework for such
subsidiaries. The policy may be accessed at
www.vedantalimited.com.
In accordance with Regulation 16(1)(c) of the Listing
Regulations, your Company has the following material
subsidiary companies during the financial year 2020-21:
Hindustan Zinc Limited (HZL), a listed subsidiary of the
Company;
Cairn India Holdings Limited (CIHL), an unlisted
subsidiary; and
Cairn Energy Hydrocarbons Limited, an unlisted
subsidiary.
The Company is in compliance with the applicable
requirements of the Listing Regulations for its subsidiary
companies during the financial year 2020-21.
182
183
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Debentures
During the financial year 2020-21, your Company raised
` 500 crores through issuance of Secured, Rated,
Redeemable, Non-Cumulative, Non-Convertible
Debentures (NCDs) of face value of ` 1,000,000 each on
private placement basis as per the following details:
Dividend and other amounts transferred/credited to IEPF during 2020-21
The details of dividend and other unpaid/unclaimed amounts transferred to IEPF during the year are provided below:
Dividend and other unpaid/unclaimed amounts transferred to IEPF during the year
< BACK TO CONTENTS
Coupon Rate
Date of Allotment
No. of NCDs
Total Amount (in
D
) Tenor
Maturity Date
7.50% Secured Rated Listed
Redeemable Non-Convertible
Debentures
February 17, 2021
5,000
500 crores 1 year and
March 17, 2022
1 month
The aforesaid debentures are listed on BSE Limited.
Further, the details of NCDs outstanding debentures as of March 31, 2021 have been detailed in the Corporate
Governance Report.
Commercial Papers
The Commercial Papers (CPs) issued by the Company
had been listed on National Stock Exchange of India
Limited and have been duly redeemed on timely basis.
As on March 31, 2021, there are nil outstanding CPs.
Further details have been provided in the Corporate
Governance Report.
Unclaimed Shares
Pursuant to the SEBI Circular and Regulation 39 of Listing
Regulations regarding the procedure to be adopted for
unclaimed shares issued in physical form in public issue or
otherwise, the Company has a separate demat account
in the title of ‘Vedanta Limited – Unclaimed Suspense
Account’ with HDFC Bank Limited*.
The details of shares lying in the unclaimed suspense account are provided below:
Description
Aggregate number of shareholders and the outstanding shares in the suspense account lying at the
beginning of the year
Number of shares transferred to the unclaimed suspense account during the year
Number of shareholders who approached issuer for transfer of shares from suspense account
during the year
Number of shareholders to whom shares were transferred from suspense account during the year
Number of shares transferred to IEPF account pursuant to Investor Education and Protection Fund
Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 read with Amendment Rules, 2017
Aggregate number of shareholders and the outstanding shares in the suspense account lying at the
end of the year. The voting rights on these shares shall remain frozen till the rightful owner of such
shares claims the shares
No. of
shareholders
776
-
4
-
154
618
No. of Equity
shares of
E
1/- each
934,859
-
107,008
-
122,039
705,812
*During the year, the unclaimed suspense account maintained by the Company with Karvy Stock Broking Limited has been closed and
securities transferred to a separate demat account opened with HDFC Bank Limited.
Transfer of unpaid and unclaimed amounts to Investor
Education and Protection Fund (IEPF)
In accordance with the provisions of Companies Act, 2013
and Investor Education and Protection Fund (Accounting,
Audit, Transfer and Refund) Rules, 2016 (IEPF Rules), the
Company is required to transfer the following to IEPF:
Dividend amount that remains unpaid/unclaimed for a
period of seven (7) years; and
Shares on which the dividend has not been paid/
claimed for seven (7) consecutive years or more.
Your Company, in its various communications to the
shareholders from time to time, requests them to claim
the unpaid/unclaimed amount of dividend and shares due
for transfer to IEPF established by Central Government.
Further, in compliance with IEPF Rules including statutory
modifications thereof, the Company publishes notices
in newspapers and also sends specific letters to all the
shareholders, whose shares are due to be transferred to
IEPF, to enable them to claim their rightful dues.
Financial
Year
2012-13
2012-13
2012-13
2012-13
2012-13
2013-14
2013-14
Total
Type of Amount
Interim Dividend (2nd)
Final Dividend
Final Dividend
Final Dividend
Sale Proceeds of Fractional Shares arising
out of Amalgamation Scheme 2013
Interim Dividend
Interim Dividend
Date of
Declaration
April 29, 2013
June 06, 2013
June 27, 2013
July 24, 2013
August 18, 2013
October 22, 2013
October 31, 2013
Amount transferred
)
to IEPF (in
D
Date of transfer
to IEPF
7,014,639.00 June 10, 2020
1,846,935.00 August 19, 2020
718,433.00 August 21, 2020
5,998,486.00 September 08, 2020
243,595.00 October 14, 2020
4,277,100.00 December 09, 2020
13,637,440.00 December 22, 2020
33,736,628.00
In view of specific order of court/ tribunal/ statutory
authority restraining transfer of shares and dividend
thereon, such shares and unpaid dividend have not been
transferred to IEPF pursuant to Section 124 of Companies
Act, 2013 and Rule 6 of IEPF Rules including statutory
modifications or re-enactments thereof.
The details of dividend declared during the year on shares already transferred to IEPF are provided below:
Dividend declared during 2020-21 on shares already transferred to IEPF
Financial
Year
2020-21
Total
Type of Amount
Interim Dividend (1st)
Date of
Declaration
October 24, 2020
Amount transferred
)
to IEPF (in
D
Date of transfer
to IEPF
38,227,812.50 November 11, 2020
38,227,812.50
Shares transferred/credited to IEPF during 2020-21
During the year, the Company transferred 458,317 equity
shares of ` 1/- each comprising of 1,367 shareholders
to IEPF.
The Company has also uploaded the details of unpaid
and unclaimed amounts lying with the Company as on
September 30, 2020 (the date of last Annual General
Meeting) on the website of the Company at
www.vedantalimited.com. Further, the details of equity
shares transferred are also made available on the website
of the Company at www.vedantalimited.com.
The shareholders whose shares/dividends have been
transferred to IEPF can claim the same from IEPF in
accordance with the prescribed procedure and on
submission of such documents as prescribed under the
IEPF Rules. The process for claiming the unpaid shares/
dividends out of IEPF can be accessed on the IEPF website
at www.iepf.gov.in and on the website of the Company at
www.vedantalimited.com.
Dividend due to be transferred to IEPF during 2021-22
The dates on which unclaimed dividend and their corresponding shares would become due to be transferred to IEPF
during the financial year 2021-22 are provided below:
Dividend due to be transferred to IEPF during 2021-22
Particulars
Date of Declaration
Final Dividend 2013-14
Final Dividend 2013-14
Interim Dividend 2014-15
Interim Dividend 2014-15
Total
July 11, 2014
July 23, 2014
September 17, 2014
October 29, 2014
Date of completion of
seven years
August 15, 2021
August 27, 2021
October 22, 2021
December 03, 2021
Due date for transfer to
IEPF
September 14, 2021
September 26, 2021
November 21, 2021
January 02, 2022
Amount as on
)
March 31, 2021 (in
D
14,311,444.00
4,180,676.50
3,693,990.00
14,501,971.75
36,688,082.25
Ms. Prerna Halwasiya, the Company Secretary &
Compliance Officer of the Company is designated as the
Nodal Officer under the provisions of IEPF. The contact
details can be accessed on the website of the Company at
www.vedantalimited.com.
Transfer to Reserves
The Company proposes Nil transfer to General
Reserve out of its total profit of ` 10,503 crores for
the financial year.
Particulars of Loans, Guarantees or Investments
The particulars of loans given, investments made,
guarantees given and securities provided along with the
purpose for which the loan or guarantee or security is
proposed to be utilised as per the provisions of Section
186 of the Act are provided in the standalone financial
statements. (Please refer to Notes to the standalone
financial statements).
184
185
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Fixed Deposits
As at March 31, 2021, deposits amounting to ` 54,000
remain unclaimed. Since the matter is sub judice, the
Company is maintaining status quo.
Public Deposits
The Company has not accepted any deposits falling under
the ambit of Section 73 of the Companies Act, 2013
(‘Act’) and the Rules framed thereunder during the year
under review.
Material changes affecting the financial position of the
Company
No material changes and commitments have occurred
subsequent to the close of the financial year till the date
of this Report which may affect the financial position of
the Company.
Significant & Material orders passed by the regulators
or Courts or Tribunals
Provided below are the significant and material orders
which have been passed by any regulators or courts
or tribunals against the Company impacting the going
concern status and Company’s operations in future.
Iron-Ore Division – Goa Operations
Supreme Court (SC) in the Goa Mining matter in 2014
declared that the deemed mining leases of the lessees
in Goa expired on November 22, 1987 and the maximum
of 20 years renewal period of the deemed mining leases
in Goa under the Mines and Minerals (Development and
Regulation) (MMDR) Act had also expired on November
22, 2007 and directed state to grant fresh mining leases.
Thereafter, various mining leases were renewed by
the state government before and on the date the
MMDR Amendment Ordinance 2015 came into effect
(i.e. January 12, 2015).
These renewal of mining leases were challenged before
the SC by Goa Foundation and others in 2015 as being
arbitrary and against the judgement of the SC in the
earlier Goa mining matter. The SC passed the judgement
in the matters on February 7, 2018 wherein it set aside the
second renewal of the mining leases granted by the State
of Goa. The court directed all lease holders operating
under a second renewal to stop all mining operations
with effect from March 16, 2018 until fresh mining leases
(not fresh renewals or other renewals) in accordance
with the provisions of the MMDR Act, 1957 and fresh
environmental clearances are granted.
Subsequently, mining lessees and other mining
stakeholder have filed applications in the pending
Abolition Act matter for resumption of mining in the
State. The Central Government has also filed an early
hearing application in the long pending abolition matter.
We have now filed Special Leave Petition in the
Supreme Court in appeal from the HC order against a
non-consideration of our representation seeking an
amendment of the mining lease till 2037 based on the
provisions on the MMDR Amendment Act, 2015. This
will be heard in due course. SC has on February 10, 2020
allowed the impediment of Goa foundation and another
impleader. The matter will be listed in due course.
Separately, we also filed a review petition against the
Supreme Court judgement dated February 7, 2018 before
the Supreme Court. The review petition was heard in
chambers and the order in relation to it is expected in due
course. Vedanta’s special leave petition will be listed for
hearing in due course.
Copper Division
Copper division of Vedanta Limited has received an order
from Tamil Nadu Pollution Control Board (TNPCB) on
April 09, 2018 whereby they have rejected the Company’s
application for renewal of Consent to Operate (CTO) for
the 400,000 Metric Tonnes Per Annum (MTPA) Copper
Smelter plant in Tuticorin. In furtherance to the order
of TNPCB rejecting the Company’s application, the
Company decided to shut its Copper smelting operations
at Tuticorin and has filed an appeal with TNPCB Appellate
authority against the order. During the pendency of
the appeal the TNPCB vide its order dated May 23, 2018
ordered disconnection of electricity supply and closure
of the Company’s Copper Smelter plant. Post this,
the Govt of Tamil Nadu on May 28, 2018 ordered the
permanent closure of the plant. The Company challenged
the same in the National Green Tribunal (NGT) which
passed a favorable order for reopening of the plant.
The order was appealed by the TNPCB and the State of
Tamil Nadu in the Supreme Court. The Supreme Court
passed an order upholding the appeal and directing
the Company to approach the Madras High Court for
relied. On August 18, 2020, the Division Bench of Madras
High Court dismissed all the writ petitions filed by the
Company. Vedanta Limited subsequently filed a special
leave petition to appeal against the Madras High Court
decision before the Supreme Court. The application
for interim relief under the special leave petition was
heard on December 2, 2020 and the Supreme Court
had rejected such application for interim relief. The
main matter of the special leave petition will be heard
for its final merits in due course. Next date of hearing is
currently August 17, 2021. On April 27, 2021, in line with
the decision of the TN State Govt, the Supreme Court
passed an order for permitting the operation of our
oxygen plant on a standalone basis, under the oversight
of a committee nominated by the State Govt. The power
for operation of the oxygen plant is to be provided by the
State Govt. We have since sent tankers with liquid oxygen
that have been dispatched to Government Medical
Colleges in Thoothukudi, Thirunelveli and Kanyakumari
as well.
In the meantime, the Madurai Bench of the High Court of
Madras in a public interest litigation filed against Vedanta
Fathima Babu held through its order dated May 23, 2018,
that the application for renewal of the environmental
clearance for the expansion project shall be processed
after a mandatory public hearing and the said application
shall be decided by the competent authority on or before
September 23, 2018. In the interim, the High Court
ordered Vedanta to cease construction and all other
activities on site for the proposed expansion project with
immediate effect. Currently, the Ministry of Environment,
< BACK TO CONTENTS
Forest and Climate Change (“MoEF”) has updated
on its website that Vedanta Limited’s environmental
clearance for expansion project will be considered for
ToR either upon verdict of the NGT case or upon filing of
a Report from the State Government/ District Collector,
Thoothukudi. Separately, SIPCOT through its letter
dated May 29, 2018, cancelled 342.22 acres of the land
allotted to Vedanta Limited for the proposed expansion
project. Further, the TNPCB issued orders on June 7,
2018, directing the withdrawal of the consent to establish
for the expansion project, which is valid until December
31, 2022. In a writ filed before Madras High Court Madurai
Bench challenging the lease cancellation order, Madras
High Court through order dated October 3, 2018 has
granted an interim stay in favour of the Company
cancelling on the cancellation of 342.22 acres of the
land allotted.
Further, on June 07, 2018, TNPCB withdrew the CTE
granted for expansion project for a period of five years.
The Company has filed Appeals before the TNPCB
Appellate Authority challenging withdrawal of CTE by
the TNPCB and the matter will be listed for hearing in
due course.
Change in nature of business of Company
There is no change in the nature of business of your
Company during the year under review.
Failure to implement any corporate action
There were no instances where the Company failed to
implement any corporate action within the specified
time limit.
AWARDS AND RECOGNITION
In its constant quest for growth and excellence,
your Company continues to be committed towards
maintaining the highest standards of corporate
governance and sustainable practices. As a recognition
for our unconventional innovations and significant
contributions towards stakeholders and the society
as a whole, your Company has been winning an array
of accolades at various forums while securing plaudits
as the recipient of numerous prestigious awards for
demonstrating its business ethos.
These acknowledgements render a testament to the
Company’s progress and its diligent efforts towards
delivering value for all its stakeholders.
The details of the key recognitions bestowed upon the
Company have been highlighted in a separate section in
the Annual Report.
DIRECTORS’ RESPONSIBILITY STATEMENT
As stipulated in Section 134 of the Companies Act, 2013,
your Directors subscribe to the “Directors’ Responsibility
Statement” and to the best of their knowledge and ability,
hereby confirms that:
(a)
(b)
(c)
(d)
(e)
in the preparation of the annual accounts, the
applicable accounting standards have been followed and
there are no material departures from the same;
they have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company at the end of the financial year, i.e. March
31, 2021 and of the profit and loss of the Company
for that period;
they have taken proper and sufficient care for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies
Act, 2013 for safeguarding the Company’s assets
and for preventing and detecting fraud and other
irregularities;
the annual accounts have been prepared on a going
concern basis;
they have laid down internal financial controls to
be followed by the Company and that such internal
financial controls are adequate and are operating
effectively. However, certain controls relating to
benchmarking the terms and authorisations for
transactions with related parties were required to be
enhanced, which have since been strengthened; and
(f)
proper systems have been devised to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.
APPRECIATION
Your Directors wish to place on record, their sincere
appreciation to the Central and State Government
Authorities, Bankers, Stock Exchanges, Financial
Institutions, Analysts, Advisors, Local Communities,
Customers, Vendors, Business Partners, Shareholders
and Investors forming part of the Vedanta family for
their continued support, assistance and encouragement
extended to us during the year.
Our business was built with a simple mission
envisioned by the Group’s Chairman, Mr. Anil Agarwal,
“To create a leading global natural resource company.”
In a bid to accomplish the mission, the Company is
186
187
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports deftly managed by an adroit set of leaders with global
and diverse experience in the sector. The professionally
equipped and technically sound management has set
progressive policies and objectives, follows global
practices, all with a pragmatic vision to take the
Company ahead to the next level.
We would also like to take this opportunity to extend
our earnest regard to all our employees for their
zealous enthusiasm and interminable efforts directed
towards lodging significant contributions to the growth
of the Company.
We further undertake to express our heartiest
gratitude to all our stakeholders for their unflinching
faith in their Company.
We look forward for bestowal of your support as we
diligently strive to deliver sustained value for our
stakeholders and inscribe on the footprints of nation
building for one of the fastest growing economies of
the world.
We regret the loss of life due to COVID-19 pandemic
and are deeply grateful and have immense respect for
every person who risked their life and safety to fight
this pandemic.
We look forward for your continued support in future.
For and on behalf of the Board of Directors
Anil Agarwal
Non-Executive Chairman
DIN: 00010883
Place: London
Date: May 13, 2021
< BACK TO CONTENTS
Annexure A
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
(A) CONSERVATION OF ENERGY
Conservation of natural resources continues to be
the key focus area of your Company. Some of the
important steps taken in this direction follow.
Oil & Gas Business
Rajasthan Operations
i.
Utilization of associated natural gas by
commissioning of 2*1.1 MW & 1*0.8 MW GEGs
at Rajasthan North satellite field (NI-02) for
power generation and thereby reducing GHG
emission by avoiding flaring. Cumulative GHG
reduction potential of ~9,200 tonnes of CO2e/
annum.
ii.
iii.
iv.
Energy conservation by replacement of
conventional lights with energy efficient
lightings (LED) at MBA. Approx. 264,000 KWH
equivalent to 950 GJ saved in FY 2020-21.
Installation of Solar roof top of 15 KW at AGI 18
& 19. Renewable power generation potential of
36,000 KWH/annum.
Avoidance of GHG emission by renewable
power generation (solar): 522,603 KWH for
RJ operations and 37,334 KWH from midstream
in FY 2020-21.
Ravva Operations
i.
Flare Gas Recovery from degasser using
LP compressor for achieving Zero flaring.
Recovery of 7,000 scmd has been achieved
(equivalent to 15,000 BOE/annum). The activity
has reduced the gas flaring, avoiding almost
6,636 Tons/annum GHG emissions.
ii.
iii.
LP flare blower VFD for power optimisation has
been commissioned.
Installation of Joule Thomson Pressure Control
valve to achieve retro grade condensation
has been completed. Reduction in fuel gas
consumption by 1,300 scm.
iv.
Replaced fluorescent and HPSV lights with LED.
There is a saving potential of 15,330 KWH.
Cambay Operations
i.
Optimised heat tracing operation with revised
temperature settings.
ii.
Raw water pump 30 min run timer has been
configured in DCS to avoid unnecessary
running of pump and minimise water wastage.
iii.
Optimised propane level to achieve energy
saving in HCDP compressors’ operation.
Copper Business
i.
High mast LED lights Installation – Electric
energy reduction (Upto 35,478 KWH/Year
reduction).
ii.
iii.
iv.
v.
vi.
Boiler Oxygen trimmer installation– Reduction
in Furnace Oil Consumption (Up to 12.36
MT/ Year).
Replacement of Existing Boiler with High
Efficient Boiler – Reduction in Furnace Oil
Consumption (Upto 301.02 MT/Year).
Capacitor bank installation for 35TPH CCR –
Electric energy reduction (Up to 484,486 KWH/
Year reduction).
Setup of 100 KW solar power plant – Electric
energy reduction (Up to 65,700 KWH/Year
reduction).
Saving in Vaporiser power by using PNG in
place of LPG – Electric energy reduction
(Up to 1,576,800 KWH/Year reduction).
Iron Ore Business
VAB
i.
Production of foundry grade pig iron outside
the blast furnace (Qty. 84,782 T) by using
Ferro-silicon compound resulting in saving of
40Kg/THM coke consumption.
ii.
iii.
iv.
v.
vi.
vii.
Sinter plant main exhaust fan duct & wind box
leakage arresting, achieving power saving of
1,008,000 KWH/annum.
Conducted STG overhauling along with
condenser chemical cleaning to reduce specific
steam consumption by 0.5 TPH. (Increased
generation by 1,008,000 KWH/annum).
Optimised compressor usage by removing
non-necessary points, and arresting leakage,
thus, reducing running from 3 to 2 compressors
in PID-2 (Saving – 369,600 KWH/annum).
Conducting Compressed air leakage audit
and arresting leaking points in MCD and PP
(Saving - 168,000 KWH/annum).
Conversion of 20% of conventional lamps with
LED lamps (Saving – 175,200 KWH/annum).
Provided lighting with PLC automation/timer
to eliminate wastage when not required.
(Saving – 43,800 KWH/annum).
viii.
Replacing cooling tower fan shaft from
SS shaft to composite fiber shaft
(Saving – 16,800 KWH/annum).
188
189
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
IOK
i.
ii.
Installation of Haul road lighting automation
panels – 4 Nos (Saving – 12.393MWh/annum).
Replacement of mercury vapor lamps in high old
high mast lights of BBH railway siding. Reduced
the no of lights from 8 to 4 and replaced with
300W LED lights. (Savings – 23.76MWh).
Power Business
2,400 MW Jharsuguda
i.
Replacement of Air preheater basket & seals
for Unit#3 units to reduce the high flue gas exit
temperature to design level saving 1 kcal/ KWH
in heat rate and 1,506 KWH in PA fans
consumption.
ii.
iii.
iv.
v.
vi.
vii.
Unit#4 flue gas duct leakages rectification
and bag filter replacement to reduce ID fans
consumption by 1,992 KWH.
U#1,3,4 vacuum pump suction line modification
done which caused vacuum to improve and
we were able to save 35 kcal/KWH, 18.2 kcal/
KWH & 16.8 kcal/KWH of heat rate in U#1, 3 & 4
respectively.
Unit#4 air preheater seals rectification to
reduced PA & FD fans consumption by 200
KWH.
Unit#3 condenser chemical cleaning to reduce
losses due to low vacuum by 38 kcal/KWH.
Unit#4 condenser hydro jet cleaning to reduce
losses due to low vacuum by 14 kcal/KWH.
Replaced timer-based drain valves with level
sensor based drain valves in instrument air
tanks/receivers and ESP bag filter SOV passing
rectification to reduce compressor power
consumption by 350 KWH.
viii.
CW pump running optimisation at partial loads
and transition ambient situations.
ix.
Mill Liner Replacement (6 mills), Ball segregation
& Top-up in 12 Mill which resulted into Mill
Output to increase from 68 TPH to 85 TPH
to reduce the power consumption of Mills by
1,600 KWH.
CPP 1,215 MW Jharsuguda
i.
Replacement of Air preheater basket for 2 units
(Unit 5,6) to reduce the very high flue gas exit
temperature to design level saving 3 kcal/KWH
in heat rate and 450 KWH in PA consumption for
the station.
ii.
iii.
Turbine Overhauling in Unit#5&6 to improve HP
cylinder efficiency resulted into saving of 4 kcal/
KWH in heat rate for the Station.
Replacement of Air preheater seals and bag
filters replacement along with reduction in
external air ingress by flue gas duct repairing for
4 units (Unit#2, 7, 5 & 6) to reduce ID and PA fans
consumption by 2,100 KWH.
iv.
v.
vi.
vii.
Cooling tower fills replacement done in Unit#6
to save 25 kcal/KWH of heat rate in unit.
Unit#1 & 2 Cooling tower blade angle adjustment
to increase cooling tower performance caused
vacuum losses to reduce by 2 kcal/KWH each
for Unit#1&2.
Chemical cleaning of cooling tower fills done
for Unit#5 to increase air flow across tower and
reduce vacuum losses.
Condenser bullet cleaning done in Unit#5 & 6
to save in heat rate by 20 kcal/KWH for both the
units combined.
viii.
6 out of 9 units able to run at 104% PLF after
maintenance work.
Aluminium Business
Smelter Plant Jharsuguda
Smelter Plant 1
Electrical Energy
DC Energy saving
i.
100% graphitised cathode pot implementation.
ii.
Improvement in Pot Voltage drops by bolt and
clamp drop reduction.
iii. Current efficiency improvement in Potline.
AC auxiliary Energy saving
i.
Installation of rubber belts instead of rubber
mats in furnace areas to stop air leakages in
building 1 & 2.
ii.
Compressor intercooler replacement for two
compressor.
iii. Dryer Auto Drain Valve installation.
iv.
v.
vi.
Replacement of conventional lights with LED
lights in office and MCC area.
Energy Efficient Motor installation.
No. of operating shift reduction in rodding plant
from 54 to 52 shift.
vii.
Cold well pump current optimisation in pump
house.
viii.
Individual Air Pipeline for Cast House to reduce
compressor power consumption.
Smelter Plant 2
Electrical Energy
DC Energy saving
i.
100% graphitised cathode pot implementation.
ii. Current efficiency improvement.
AC auxiliary Energy saving
i.
Replacement of conventional lights with LED
lights in office, MCC area, Streetlights and
Highmasts.
ii.
Interconnection of cold well pump line & filter
feed pump line in rectifier pump house and
Reduction compressor pump house.
iii.
VFD installation in thimble cleaning tumbler.
190
< BACK TO CONTENTS
iv.
v.
vi.
Elimination of idle running of rodding shop bag
filters ID fans.
RB-26, RB-188 idle running elimination in
bakeoven.
Bag chamber DP normalisation between
FTP-3&4 of bakeoven.
vii.
Elimination of DC3 and DC5 Screw conveyor
and RAL idle running.
viii.
Potline ID Fan damper optimisation based on
hooding & Flow measurement.
ix.
Optimization of Running of GAP Belt conveyor
by reducing idle running time.
Lanjigarh – Refinery
The following major energy conservation measures
are taken at Lanjigarh:
i.
ii.
iii.
iv.
v.
vi.
Installation of two numbers 45KW VFD for
drinking water pump motor.
Installation of two numbers 45KW VFD for lime
transfer pump at MOL.
Replacement of 3000 numbers of conventional
lights with LED. Annual saving of 7 lakhs unit of
electrical energy.
Improvement of 33KV P.F at Substation-4 by
adding 1MVAR capacitor bank from 0.87 to 0.91.
Installation of 22KW VFD for HST area sump
pump motor.
Installation of 55KW VFD for coarse seed area
agitator.
Lanjigarh – CGPP
i.
Reduction of 0.3T/MW of steam consumption
through turbine (saving of 6.9 lakhs unit).
ii.
Energy saving through optimisation of running
hour of make-up pump (saving of 0.73 lakhs unit).
(B)
ADDITIONAL INVESTMENTS AND
PROPOSALS, IF ANY, BEING IMPLEMENTED
FOR REDUCTION OF CONSUMPTION OF
ENERGY
Oil & Gas Business
Rajasthan Operations
i.
Installation of gas compressor & pipeline
from Raag Oil to RGT to avoid the flaring at
Wellpad and recovery of Gas for sale. GHG
reduction potential of approx. 40,000 tonnes
of CO2e/annum.
ii.
iii.
iv.
Solar panel at Radhanpur Terminal and RDT LQ.
Solar rooftop of 15KW each at 10 Above ground
installations AGIs.
Feasibility study for CO2 sequestration for
Aishwariya Field (ABH + Fatehgarh) through
CCS based on Geo mechanics.
v.
Proposal for Installation of Microturbine to
generate up to 8MWH power utilising Medium
Pressure Steam currently available in the
system as spare.
vi.
Proposal for installation of Solar Panel of
20MWH nearby MPT.
Ravva Operations
i.
Installation of PCV in Contract-2 Gas
Treatment plant has been completed to reduce
power consumption for propane system.
ii.
iii.
LP flare blower VFD for power optimisation has
commissioned.
Installation of LED lights at Ravva Plant LQ
Corridor.
Cambay Operations
i.
Installation of LED lights in few more areas
inside plant premises.
ii.
Installation of 20 Nos. solar lights on perimeter.
Copper Business
i.
VFD installation for RCW Pumps in 35TPH CCR
– Project.
ii.
iii.
Setup of 825KW solar power plant.
Replacement of existing roof lights with LED
lights in ACP, CCPC & CCPP.
iv. Using PNG instead of FO for Boiler.
v.
Reduction in FO consumption by using Bio
mega additive.
Iron Ore Business
VAB
i.
Replacement of various pumps in VAB with
energy efficient pumps.
ii.
iii.
IOK
iv.
Providing variable fluid coupling for fans and
pumps.
Implementing various energy saving measures
suggested by TERI during the energy audit.
In house fabrication of 9m tall towers for using
them as lighting towers in 5 different locations
in mines. The portable lighting towers which
were running on diesel are now eliminated
resulting in the savings of 14,000 `/Month/DG.
v.
Electrification of TUP-2 plant by elimination
of 40kVA DG by reconditioning of the power
lines and providing supply from Govt. supply
resulting in cost savings of 1.5L/Month.
Power Business
2,400 MW Jharsuguda Proposals:
i. MOC upgradation in platen RH.
ii.
Installation of VFD in CEPs.
1,215 MW Jharsuguda Proposals:
i.
Turbine overhauling for 5 units.
ii.
Chemical cleaning of Cooling tower fills.
191
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
< BACK TO CONTENTS
Refinery
I.
Reduction of Specific Electrical energy from
235KWH/T to 216KWH/T.
II.
Reduction of specific FO consumption from
71.23Kg/T to 70.59Kg/T.
(D)
THE STEPS TAKEN BY THE COMPANY
FOR UTILISING ALTERNATE SOURCES OF
ENERGY
ii.
Form of disclosure of particulars with respect to
technology absorption research and development
(R & D)
Specific areas in which R&D carried out by the Company.
Copper Business
i.
Recovering of copper sulphate from the electrolyte.
Introduction of 4th generation Induction Lighting
system.
Copper Business
i.
Initiated 825KW Solar power Project.
ii.
iii.
iv.
Planning to setup Sewage treatment plant to
treat Municipal sewage to generate fresh water
for plant & nearby villages’ usage.
Planning to setup a Natural gas terminal for
Boiler as alternative to FO & LPG.
Planning to setup Desalination plant to
self-sustain on the water requirement.
iii.
Waste Heat Recovery using Furnace Flue Gas.
Power Business:
2,400 MW Jharsuguda
i. MOC upgradation in platen RH.
ii.
ECO coil design change to plane tube.
Aluminium Business
Smelter Plant Jharsuguda:
i.
Advanced pot controller & Pot technology
upgradation.
(C)
IMPACT OF ABOVE MEASURES IN
(A) AND (B) FOR REDUCTION OF ENERGY
CONSUMPTION AND CONSEQUENT IMPACT
OF COST OF PRODUCTION OF GOODS
Oil & Gas Business
Rajasthan Operations
i.
Utilization of Associated gas for power and
thereby avoiding flaring/GHG emission.
ii.
iii.
Conservation of diesel energy by installation of
GEGs at satellite fields.
Renewable power generation resulting in
reduction in electricity and diesel saving.
Ravva Operations
i.
Gas recovery from degasser has resulted in net
annual savings equivalent to ~` 2.8 crore.
ii.
Installed PCV in Gas Treatment plant to achieve
Joule Thomson effect and provide TOR to gas
treatment. Fuel gas consumption reduced
by 1,300 scm/day by stopping one Propane
compressor in Contract-2- and ~` 40 lakh
per annum.
iii.
Total Savings from replacement of lights:
15 MWH/annum (~100,000 ` per annum).
Iron Ore Business
VAB
i.
The Energy Conservation measures
undertaken in various areas in 2020-21 have
an annual saving potential of 2,820 MWh of
Electricity per annum for VAB.
IOK
ii.
The Energy Conservation measures
undertaken in various areas in 2020-21 have an
annual saving potential of 37.752 KL of Diesel &
36.15 MWh of Electricity for IOK.
Power Business
2,400 MW Jharsuguda
I.
Station APC reduced from 8.34% to 7.99% in
FY’21 and Unit#1 having potential for reduction
by 1.4% which is already planned for correction
by 10 days shutdown.
II.
Reduction in Specific coal consumption by
7 gms /KWH on annual basis (1800 MW).
ii. Use of MV drive in ID fans.
iii.
iv.
v.
Installation solar system.
Centralisation of pump house SCADA for
optimisation of pump power consumption.
Replacement of old motors with Energy
efficient motor.
vi. 100% LED conversion.
vii. HFO SCADA level-2 upgradation.
Plant-2
i.
ii.
iii.
iv.
100% Graphitized cathode pot implementation.
Use of RUC copper inserted collector bar for
pot cathode.
Advanced pot controller & Pot technology
upgradation.
Replacement of conventional lights with
LED lights.
v.
VFD installation in Cold well pumps, CT fans.
Target Area
DIG, EVAP,
White 1, Red 2
Estimated
Savings
(KWH)
1,359,000
RWTP
87,600
Refinery
1,052,631
Refinery
368,421
Refinery
Sr.
No.
Project
1
2
3
4
5
6
7
Replacement or
Maintenance of
Faulty Steam traps
Installation of
VFD in Raw water
drinking pump
motor
Improvement in
refinery power
factor from 0.88 to
0.95
Efficiency
improvement in
HT motors by
replacement of
highly efficient
TEFC motor
Energy
management
system and SCADA
implementation in
entire refinery
Use of blowers
instead of
compressed air in
Sump pumps
Replacement of
3000 conventional
lights by LED lights
Refinery
NA
1,215 MW Jharsuguda
I.
0.9 % reduction in Forced outages.
PDS, DIG
7,455
Aluminium Business
Plant 1
i.
Specific energy consumption reduction by
94.66 KWH/ton.
ii. HFO saving 0.61 KG/MT of anode.
Refinery & CGPP
459,900
Plant 2
i.
Specific energy consumption reduction by
62.897 KWH/ton.
ii. HFO saving 0.54 KG/MT of anode.
192
193
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
< BACK TO CONTENTS
Technology Absorption, Adaptation and Innovation
Efforts in brief made
towards technology
absorption,
adaptation and
innovation
Oil & Gas Business
Rajasthan Operations
Cairn Oil and Gas commenced exploratory drilling in its OALP blocks based on early prospects matured.
1 well in Rajasthan is drilled and an oil discovery has been notified to MoPNG. Well drilling commenced
in Cambay and in Assam. Airborne FTG surveys completed with advanced processing in progress and
Seismic surveys continued across multiple blocks to delineate viable prospects for exploratory drilling.
Iron Ore Business
VAB
a) Pulverised coal injection in blast furnace – 1 & 2.
b) Oxygen enrichment in Sinter Plant and Blast furnace – 1 & 2.
c) Hydraulic compacting station in Met coke division.
Aluminium Business
Smelter Plant – 1 & 2
i.
ii.
Individual Air Pipeline for Cast House to reduce compressor power consumption.
Interconnection of cold well pump line & filter feed pump line in rectifier pump house and Reduction
compressor pump house.
Benefits derived as
a result of above
efforts e.g. product
improvement, cost
reduction, product
development, import
substitution
Iron Ore Business
VAB
a) Reduction in coke rate resulting reduced COP.
b)
c)
d) Reduction in fines generation.
Increase in productivity and reduction in coke rate.
Improvement in coke oven productivity.
Power Business
2,400 MW Jharsuguda
Power cost reduction by 224 $/ton (for 1,800 MW)
Increase in station availability and PLF by 17%.
1,215 MW Jharsuguda:
Power cost reduction by 190 $/ton
Reduction in forced outage time by 0.9%.
Increase in station availability and PLF by 1%. (ever highest in FY’21- 95%)
In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), the
following information may be furnished:
Technology imported
Has technology been fully absorbed
Year of import
Oil & Gas Business
Copper Division
Iron Ore – Value
Addition Business:
No
No
Hydraulic compacting
station in MCD
Battery-1 and Battery-2
Pulverized coal
injection in Blast
furnace 1& 2.
No
No
Power Business
Aluminium Business
2018-19 [MCD]
2017 [PID-1]
Yes
0
2
0
2
1
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
0
2
0
2
1
2
0
2
0
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
1
2
0
2
,
1
3
h
c
r
a
M
d
e
d
n
e
r
a
e
Y
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
t
i
n
U
s
r
a
l
u
c
i
t
r
a
P
y
g
r
e
n
e
f
o
n
o
i
t
a
v
r
e
s
n
o
c
o
t
t
c
e
p
s
e
r
h
t
i
w
s
r
a
l
u
c
i
t
r
a
p
f
o
e
r
u
s
o
l
c
s
i
D
m
u
i
i
n
m
u
A
l
r
e
w
o
P
e
r
O
-
n
o
r
I
r
e
p
p
o
C
s
a
G
&
l
i
O
a
d
u
g
u
s
r
a
h
J
h
r
a
g
i
j
n
a
L
a
k
a
t
a
n
r
a
K
a
o
G
g
n
i
i
n
M
g
n
i
i
n
M
n
o
i
s
i
i
v
D
n
o
i
s
i
i
v
D
a
k
a
t
a
n
r
a
K
a
o
G
n
o
r
I
g
i
P
e
k
o
C
t
e
M
g
n
i
i
n
M
g
n
i
i
n
M
r
e
w
o
P
t
n
a
l
P
)
R
H
W
(
n
o
r
I
g
i
P
e
k
o
C
t
e
M
n
o
i
s
i
i
v
D
n
o
i
s
i
i
v
D
3
2
.
2
1
3
8
2
4
.
9
1
.
2
1
7
9
4
3
.
.
7
6
5
5
8
2
,
.
5
6
6
7
4
3
,
0
0
.
2
1
4
6
0
2
3
.
.
3
6
9
6
1
1
7
.
0
9
7
1
4
.
.
4
0
9
1
5
8
2
1
,
4
1
.
8
2
3
1
1
8
2
.
.
5
2
4
3
7
6
1
1
,
4
2
6
8
6
9
,
6
5
.
3
0
5
8
9
2
3
4
6
,
5
0
.
1
4
1
2
4
9
1
,
2
1
.
1
2
4
0
8
,
2
8
.
4
6
5
8
1
1
3
,
5
0
.
1
4
1
5
2
5
4
.
6
6
2
5
4
.
8
.
0
0
2
.
.
4
6
7
1
3
,
2
0
8
.
2
4
1
0
8
3
3
0
1
8
.
3
4
1
2
8
7
2
3
.
9
4
2
.
8
5
3
.
6
3
3
.
8
2
4
.
5
2
.
.
0
0
6
1
2
8
0
4
0
2
,
,
.
7
1
1
4
8
7
0
4
1
2
,
,
5
5
6
9
8
4
,
3
9
1
5
8
4
,
5
0
5
1
8
7
,
,
0
8
7
3
3
0
3
,
3
.
0
.
0
8
3
3
2
9
.
A
N
A
N
A
N
A
N
A
N
9
.
0
8
4
.
l
i
N
A
N
A
N
.
9
6
8
8
1
,
r
e
w
o
P
t
n
a
l
P
)
R
H
W
(
4
.
0
.
4
5
.
5
6
6
7
.
6
1
8
5
0
9
3
,
2
5
.
1
1
0
0
9
5
.
4
7
.
2
0
0
4
5
.
9
0
.
2
7
9
4
3
.
4
.
7
3
.
1
5
5
8
.
1
2
.
0
7
5
A
N
A
N
A
N
A
N
A
N
A
N
I
L
N
L
I
N
I
L
N
l
i
N
A
N
A
N
.
4
5
2
5
9
1
,
.
0
0
1
1
5
.
5
9
8
8
5
.
0
6
8
7
6
,
.
2
7
1
8
3
,
0
0
.
.
7
3
1
.
3
7
1
A
N
0
0
.
0
0
.
.
6
1
1
.
6
2
1
.
3
1
1
2
3
5
0
3
.
l
i
N
A
N
A
N
l
i
N
A
N
A
N
I
L
N
L
I
N
I
L
N
l
i
N
A
N
A
N
l
i
N
A
N
A
N
.
2
0
5
3
.
0
.
6
2
6
.
3
5
5
3
.
0
.
3
9
4
l
i
N
A
N
A
N
.
0
3
1
1
.
0
.
8
1
6
I
L
N
L
I
N
I
L
N
A
N
A
N
A
N
.
5
0
3
7
7
,
0
.
6
4
.
4
9
5
A
N
A
N
A
N
l
i
N
A
N
A
N
l
i
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
6
5
9
9
,
5
.
7
6
.
4
7
7
6
I
L
N
L
I
N
I
L
N
l
i
N
A
N
A
N
l
i
N
A
N
A
N
l
i
N
A
N
A
N
I
L
N
L
I
N
I
L
N
l
i
N
A
N
A
N
l
i
N
A
N
A
N
.
9
8
7
4
.
0
.
5
6
5
.
3
9
5
3
.
0
.
0
0
5
l
i
N
A
N
A
N
l
i
N
A
N
A
N
.
0
0
0
.
0
.
5
6
5
I
L
N
L
I
N
I
L
N
l
i
N
A
N
A
N
.
8
8
9
7
4
5
,
.
0
0
3
1
2
6
,
9
0
.
7
1
.
9
1
1
3
.
7
6
4
5
4
3
.
0
.
9
0
3
6
1
4
.
7
1
2
0
8
2
.
4
6
5
2
.
7
1
.
0
9
3
1
6
.
1
3
.
8
2
.
6
3
9
3
0
0
0
.
0
0
.
0
0
0
0
.
0
0
0
.
0
0
.
0
0
0
0
.
0
0
0
.
0
0
.
0
0
0
0
.
0
3
.
0
3
2
2
4
3
.
.
6
2
6
6
4
6
7
.
1
5
7
7
3
.
0
0
0
.
0
0
.
0
0
0
0
.
0
0
0
.
0
0
.
0
0
0
0
.
.
2
2
1
9
1
7
,
.
8
1
5
5
8
8
,
7
9
.
1
2
7
0
2
5
.
2
9
.
4
3
1
6
0
6
.
.
0
0
0
2
2
4
,
.
8
8
1
6
7
5
,
8
.
8
.
5
0
.
0
4
9
4
.
0
.
6
0
.
1
0
.
9
9
6
5
2
7
1
,
.
3
8
0
6
7
,
3
.
0
.
2
7
8
3
2
9
.
A
N
1
.
3
0
2
.
A
N
7
0
5
5
1
,
.
8
0
0
5
6
1
,
.
2
1
9
3
4
3
5
1
,
.
8
0
3
2
5
8
,
.
2
7
8
4
3
9
5
,
.
8
2
5
6
0
0
8
,
.
1
3
3
5
3
2
6
1
,
0
1
.
3
2
6
,
6
8
1
H
W
M
7
.
0
5
4
.
.
4
5
6
9
2
6
3
,
6
.
0
1
7
0
.
.
6
4
6
4
7
.
0
9
0
.
2
0
0
.
3
6
.
5
3
2
6
.
9
3
2
0
.
5
1
1
9
0
.
8
4
1
0
0
6
.
5
3
0
.
.
0
0
7
5
1
5
9
4
.
0
2
0
5
.
6
4
0
.
8
0
7
.
3
9
7
.
.
8
5
2
1
2
6
0
5
,
.
2
5
7
4
0
1
6
5
,
s
e
r
o
r
c
H
W
K
/
`
`
/
s
m
g
,
t
i
n
U
/
`
/
`
,
H
W
M
/
`
H
W
K
t
i
n
U
/
t
i
L
,
t
i
n
U
s
e
r
o
r
c
t
i
L
/
`
`
L
K
s
e
r
o
r
c
t
i
L
/
`
`
L
K
s
e
r
o
r
c
g
K
/
`
`
T
M
s
e
r
o
r
c
g
K
/
`
`
T
M
s
e
r
o
r
c
`
`
T
M
s
e
r
o
r
c
g
K
/
`
`
T
M
l
e
u
f
f
o
t
i
n
u
r
e
p
t
i
n
U
l
i
O
e
c
a
n
r
u
F
*
*
y
t
i
t
n
a
u
Q
t
n
u
o
m
A
l
a
t
o
T
t
i
n
U
/
t
s
o
C
e
r
t
i
l
r
e
p
t
s
o
C
e
g
a
r
e
v
A
t
n
u
o
m
A
l
a
t
o
T
l
i
O
l
e
s
e
D
i
y
t
i
t
n
a
u
Q
/
e
r
t
i
l
r
e
p
t
s
o
C
e
g
a
r
e
v
A
l
i
O
f
o
e
r
t
i
l
r
e
p
t
i
n
U
t
i
n
U
r
e
p
t
s
o
C
A
P
I
/
e
n
a
p
o
r
P
/
G
N
L
/
.
G
P
.
.
L
)
G
P
L
(
-
y
t
i
t
n
a
u
Q
t
n
u
o
m
A
l
a
t
o
T
A
P
I
/
e
n
a
p
o
r
P
/
G
N
L
/
.
G
P
.
.
L
g
K
r
e
p
t
s
o
C
e
g
a
r
e
v
A
g
K
r
e
p
t
s
o
C
e
g
a
r
e
v
A
)
G
N
P
(
-
y
t
i
t
n
a
u
Q
t
n
u
o
m
A
l
a
t
o
T
A
P
I
/
e
n
a
p
o
r
P
/
G
N
L
/
.
G
P
.
.
L
)
G
N
L
(
-
y
t
i
t
n
a
u
Q
t
n
u
o
m
A
l
a
t
o
T
A
P
I
/
e
n
a
p
o
r
P
/
G
N
L
/
.
G
P
.
.
L
T
M
r
e
p
t
s
o
C
e
g
a
r
e
v
A
g
K
r
e
p
t
s
o
C
e
g
a
r
e
v
A
)
A
P
I
(
-
y
t
i
t
n
a
u
Q
t
n
u
o
m
A
l
a
t
o
T
H
W
M
*
t
i
n
U
n
o
i
t
a
r
e
n
e
g
n
w
O
l
e
u
F
d
n
a
r
e
w
o
P
.
A
n
o
i
t
p
m
u
s
n
o
C
t
i
n
U
s
s
e
n
i
s
u
B
)
s
g
h
C
d
n
a
m
e
D
c
x
E
(
t
i
n
U
/
e
t
a
R
t
i
n
U
e
s
a
h
c
r
u
P
t
n
u
o
m
A
l
a
t
o
T
y
t
i
c
i
r
t
c
e
l
E
194
195
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
.
6
6
1
5
3
.
2
2
0
2
3
2
2
4
3
.
9
3
5
2
.
.
0
4
6
3
1
.
4
4
8
0
1
8
7
6
4
.
.
7
7
3
9
1
5
5
.
2
3
9
,
4
.
9
4
5
3
4
3
,
.
5
4
0
9
0
4
1
,
.
0
0
1
4
6
7
5
3
4
1
,
,
.
9
6
4
8
0
4
1
,
1
7
8
,
3
0
5
3
2
,
.
9
8
3
4
2
9
9
4
6
1
,
,
.
0
9
7
4
0
4
,
.
6
8
0
7
6
3
,
.
0
0
0
5
3
2
,
4
9
.
2
5
3
0
4
.
3
2
3
0
8
.
3
5
5
.
7
1
7
1
9
1
7
8
,
.
0
6
2
9
9
0
8
8
,
.
4
4
9
3
7
6
5
3
2
,
,
.
8
6
1
2
6
2
0
.
.
6
0
7
.
7
5
1
2
6
2
0
.
.
1
1
7
A
N
A
N
A
N
0
0
.
A
N
0
0
.
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
A
N
l
i
N
0
0
.
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
1
0
.
l
i
N
0
0
.
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
3
0
.
l
i
N
0
0
.
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
.
0
0
l
i
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
.
0
0
A
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
A
N
l
i
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
.
1
0
l
i
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
.
3
0
l
i
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
l
i
N
A
N
A
N
.
0
0
l
i
N
.
0
0
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
0
0
0
.
0
0
.
0
0
0
0
.
0
0
0
.
0
0
.
0
0
0
0
.
2
5
0
.
5
0
0
.
5
0
0
0
0
.
3
6
0
0
.
8
6
0
.
5
0
0
.
2
0
0
0
0
.
9
7
0
0
.
.
0
0
6
1
9
4
1
1
,
.
0
0
7
5
2
8
1
1
,
s
e
r
o
r
c
`
`
T
M
T
M
/
H
W
M
T
M
/
L
K
T
M
/
L
K
T
M
/
T
M
T
M
T
M
/
H
W
K
T
M
/
T
M
T
M
/
g
K
l
a
o
C
/
e
t
t
u
q
i
r
B
l
a
r
u
t
a
N
t
n
u
o
m
A
l
a
t
o
T
y
t
i
t
n
a
u
Q
T
M
r
e
p
n
o
i
t
p
m
u
s
n
o
C
.
B
n
o
i
t
c
u
d
o
r
P
f
o
/
d
o
R
r
e
p
p
o
C
s
u
o
u
n
i
t
n
o
C
T
M
r
e
p
t
s
o
C
e
g
a
r
e
v
A
A
P
I
/
e
n
a
p
o
r
P
/
.
G
P.
L
.
d
o
R
f
o
n
o
i
t
c
u
d
o
r
P
e
r
O
-
n
o
r
I
y
t
i
c
i
r
t
c
e
E
l
l
i
O
e
c
a
n
r
u
F
l
e
s
e
D
i
l
e
u
F
d
n
a
r
e
w
o
P
.
A
n
o
i
t
p
m
u
s
n
o
C
t
i
n
U
s
s
e
n
i
s
u
B
m
a
e
t
S
r
o
f
l
a
o
C
y
t
i
c
i
r
t
c
e
E
l
i
a
n
m
u
A
l
i
n
o
t
a
n
c
a
C
r
o
f
l
l
i
O
e
c
n
a
n
r
u
F
l
a
t
e
M
t
o
H
.
l
o
s
a
n
o
i
t
a
r
e
n
e
G
B
R
H
W
e
h
t
s
e
d
u
c
n
l
i
i
s
h
T
*
T
M
/
H
W
K
L
K
T
M
/
H
W
K
L
K
T
M
/
H
W
K
L
K
T
M
/
H
W
K
T
M
/
H
W
K
y
o
l
l
a
g
n
i
d
u
l
c
n
i
(
t
e
l
l
i
B
)
y
g
r
e
n
e
y
t
i
c
i
r
t
c
e
E
l
l
i
O
e
c
a
n
r
u
F
s
t
o
g
n
I
y
t
i
c
i
r
t
c
e
E
l
l
i
O
e
c
a
n
r
u
F
s
d
o
R
e
r
i
W
y
t
i
c
i
r
t
c
e
E
l
l
i
O
e
c
a
n
r
u
F
t
s
a
c
W
O
S
y
t
i
c
i
r
t
c
e
E
l
)
s
d
o
r
r
a
B
t
s
a
C
y
o
l
l
A
y
t
i
c
i
r
t
c
e
E
l
.
l
o
s
a
P
P
C
n
i
d
e
m
u
s
n
o
c
O
F
e
h
t
s
e
d
u
c
n
l
i
i
s
h
T
*
*
T
M
/
H
W
K
r
o
f
C
A
l
a
t
o
T
(
y
t
i
c
i
r
t
c
e
E
l
y
r
a
l
l
i
i
x
u
a
d
n
a
s
s
y
o
r
t
c
e
e
l
l
a
d
u
g
u
s
r
a
h
J
h
r
a
g
i
j
n
a
L
a
k
a
t
a
n
r
a
K
a
o
G
g
n
i
i
n
M
g
n
i
i
n
M
r
e
w
o
P
t
n
a
l
P
)
R
H
W
(
n
o
i
s
i
i
v
D
n
o
i
s
i
i
v
D
a
k
a
t
a
n
r
a
K
a
o
G
n
o
r
I
g
i
P
e
k
o
C
t
e
M
g
n
i
i
n
M
g
n
i
i
n
M
r
e
w
o
P
t
n
a
l
P
)
R
H
W
(
n
o
r
I
g
i
P
e
k
o
C
t
e
M
n
o
i
s
i
i
v
D
n
o
i
s
i
i
v
D
m
u
i
i
n
m
u
A
l
r
e
w
o
P
e
r
O
-
n
o
r
I
r
e
p
p
o
C
s
a
G
&
l
i
O
0
2
0
2
1
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
0
2
0
2
1
2
0
2
0
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
1
2
0
2
,
1
3
h
c
r
a
M
d
e
d
n
e
r
a
e
Y
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
r
a
e
Y
d
e
d
n
e
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
0
2
0
2
1
2
0
2
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
,
1
3
h
c
r
a
M
t
i
n
U
s
r
a
l
u
c
i
t
r
a
P
196
< BACK TO CONTENTS
Annexure B
ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES
FOR FY 2020-21
Brief Outline on CSR Policy of the Company
1
A. Policy Objective
strong multiplier for complementing efforts,
resources and for building sustainable solutions;
Vedanta Limited (‘VEDL’ or ‘the Company’) is
committed to conduct its business in a socially
responsible, ethical and environment friendly
manner and to continuously work towards improving
quality of life of the communities in and around its
operational areas. This Policy provides guidance in
achieving the above objective and ensures that the
Company operates on a consistent and compliant
basis.
B. VEDL CSR Philosophy
We at Vedanta Limited have a well-established
history and commitment to reinvest in the social
good of our neighbourhood communities and nation.
CSR Vision
“Empowering communities, transforming lives and
facilitating nation building through sustainable and
inclusive growth.”
We believe, that
- we can positively impact and contribute to the
realisation of integrated and inclusive development
of the country, in partnership with National and
State Government as well as local, national and
international partners;
- sustainable development of our businesses
is dependent on sustainable, long lasting and
mutually beneficial relationships with our
stakeholders, especially the communities
we work with;
- partnerships with government, corporates and
civil societies/community institutions, offer a
2 Composition of CSR Committee:
- our employees have the potential to contribute
not just to our business, but also towards building
strong communities.
C. Thematic Focus Areas
Our programmes focus on poverty alleviation
programmes, especially integrated development,
which impacts the overall socio-economic growth
and empowerment of people, in line with the
national and international development agendas.
The major thrust areas will be –
a) Children’s Well-being & Education
b) Women’s Empowerment
c) Health Care
d) Drinking Water & Sanitation
e)
Sustainable Agriculture & Animal Welfare
f) Market-linked Skilling of the Youth
g) Environment Protection & Restoration
h)
Sports & Culture
i)
j)
Development of Community Infrastructure
Participate in programmes of national
importance including but not limited to disaster
mitigation, rescue, relief and rehabilitation
The CSR activities are aligned to the specified activities
in Schedule VII of the Companies Act. The above may be
modified from time to time, as per recommendations of
the CSR Committee of the Company.
Sr.
No.
1
2
3
4
5
3
Name of Director
Designation/Nature of Directorship
Mr. Mahendra Kumar Sharma
Ms. Priya Agarwal
Mr. UK Sinha
Mr. K Venkataramanan
Ms. Padmini Somani
Chairperson, Independent Director
Member, Non-Executive Director
Member, Independent Director
Member, Independent Director
Member, Independent Director
Number of meetings of
CSR Committee held
during the year
2
2
2
2
2
(Entitled to attend:0)
Number of meetings of CSR
Committee attended during
the year
2
2
2
2
NA
Provide the web-link where Composition of CSR Committee, CSR Policy and CSR projects approved by the
board are disclosed on the website of the Company.
CSR Committee: www.vedantalimited.com
CSR Policy: www.vedantalimited.com
CSR Projects: www.vedantalimited.com
197
.
l
o
s
a
t
e
S
G
D
m
o
r
f
n
o
i
t
a
r
e
n
e
G
s
e
d
u
c
n
l
i
i
s
h
T
*
*
*
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
4
5
6
Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of
the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report).
Impact assesment planned in FY 22
Details of the amount available for set off
in pursuance of sub-rule (3) of rule 7 of the
Companies (Corporate Social responsibility
Policy) Rules, 2014 and amount required for set off
for the financial year, if any
NA
7
Average net profit of the Company as per
Section 135(5)
` 831.02 Crore
(a)
(b)
Two percent of average net profit of
the Company as per Section 135(5)
Surplus arising out of the CSR
projects or programmes or activities
of the previous financial years.
(c) Amount required to be set off for the
financial year, if any
(d) Total CSR obligation for the
financial year (7a+7b-7c)
(`in crore)
16.62
0.00
16.62
8
(a)
CSR amount spent or unspent for the financial year:
Amount Unspent (in
D
crores)
Total Amount Spent
for the
Financial Year
crores)
(in
E
38.86
Total Amount transferred to Unspent CSR
Account as per Section 135(6)
Amount transferred to any fund specified under
Schedule VII as per second proviso to Section 135(5)
Amount
0
Date of Transfer
NA
Name of the Fund
NA
Amount
NA
Date of Transfer
NA
(b) Details of CSR amount spent against ongoing projects for the
Refer 'table 8b'
financial year:
(c) Details of CSR amount spent against other than ongoing projects for
Refer 'table 8c
the financial year:
(d) Amount spent in Administrative Overheads (
(e) Amount spent on Impact Assessment, if applicable (
(f)
Total amount spent for the Financial Year (8b+8c+8d+8e) (
in crores)
E
in crores)
E
E
(g) Excess amount for set off, if any (
Sl. No Particular
E
in crores)
1.41
0
in crores) 38.86
22.24
Two percent of average net profit of the Company as per Section 135(5)
Total amount spent for the Financial Year
(i)
(ii)
(iii) Excess amount spent for the financial year [(ii)-(i)]
(iv) Surplus arising out of the CSR projects or programmes or activities of the previous
financial years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)]
9
(a)
Details of Unspent CSR amount for the preceding three financial years:
Nil
Amount
(in ` crores)
16.62
38.86
22.24
0
22.24
(b)
Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s):
Refer ‘table 9b’
10
In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or
acquired through CSR spent in the financial year (asset-wise details).
(a) Date of creation or acquisition of the capital asset(s).
Nil
(b) Amount of CSR spent for creation or acquisition of capital asset.
(c) Details of the entity or public authority or beneficiary under whose name such capital asset is
(d)
registered, their address etc.
Provide details of the capital asset(s) created or acquired (including complete address and location
of the capital asset).
Nil
NA
NA
11
Specify the reason(s), if the Company has failed to spend two per cent of the average net profit as per Section
135(5).
NA
Sd/-
Sunil Duggal
Whole-time Director & Chief Executive Officer
Sd/-
MK Sharma
Non-Executive Independent Director
(Chairman - CSR Committee)
198
< BACK TO CONTENTS
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
1
1
0
1
9
8
7
6
5
4
3
2
1
I
I
I
)
b
(
8
E
L
B
A
T
-
S
E
T
V
T
C
A
R
S
C
N
O
T
R
O
P
E
R
)
E
)
6
(
5
3
1
n
o
i
t
c
e
S
n
i
(
s
a
G
&
l
i
O
2
6
2
0
0
0
0
0
R
S
C
6
5
1
3
0
0
0
0
R
S
C
4
3
0
1
0
0
0
0
R
S
C
y
m
o
n
o
c
E
l
a
r
u
R
f
o
t
n
e
m
t
f
i
l
p
U
r
o
F
y
t
e
c
o
S
i
A
N
T
E
H
C
)
E
R
U
S
(
n
o
i
t
a
d
n
u
o
F
l
a
h
g
e
h
S
o
N
o
N
o
N
9
7
9
2
0
0
0
0
R
S
C
A
R
S
C
G
o
N
3
7
4
0
0
0
0
0
R
S
C
l
e
b
a
p
p
o
t
s
n
U
a
v
u
Y
o
N
6
8
6
5
0
0
0
0
R
S
C
l
e
b
a
t
i
r
a
h
C
G
L
h
d
o
B
/
t
s
u
r
T
A
N
n
o
i
t
c
u
r
t
s
n
o
C
l
i
n
A
2
6
6
3
0
0
0
0
R
S
C
a
l
i
h
a
M
a
n
h
c
a
r
v
a
N
1
9
1
0
0
0
0
R
S
C
t
s
u
r
t
s
a
k
v
i
A
R
D
E
C
A
N
A
N
o
N
o
N
o
N
o
N
s
e
Y
-
-
-
-
-
-
-
-
-
-
.
0
0
0
0
0
0
0
8
8
,
,
.
0
0
0
0
0
0
0
0
5
1
,
,
3
2
-
2
2
0
2
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
g
n
i
r
u
s
n
e
)
v
i
(
j
t
c
e
o
r
P
i
t
a
n
n
U
r
e
m
r
a
B
e
r
o
a
J
l
l
a
t
n
e
m
n
o
r
i
v
n
e
2
-
e
s
a
h
P
;
y
t
i
l
i
i
b
a
n
a
t
s
u
s
.
0
0
0
0
0
4
4
9
6
,
,
.
0
0
0
0
0
0
6
7
5
,
,
1
2
-
9
1
0
2
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
e
r
o
a
J
l
t
n
e
m
p
o
e
v
e
D
l
y
r
i
a
D
.
0
0
0
0
0
7
5
3
8
,
,
.
0
0
0
0
0
0
0
0
8
,
,
.
0
0
0
0
0
1
8
7
5
,
,
.
0
0
0
0
0
0
0
0
1
,
,
.
0
0
0
0
0
9
3
5
7
1
,
,
.
0
0
0
0
0
0
0
5
2
,
,
.
0
0
0
0
0
3
5
4
6
,
,
.
0
0
0
0
0
0
0
0
5
,
,
.
0
0
0
0
0
5
2
1
2
,
,
.
0
0
0
0
0
0
2
1
2
,
,
,
n
a
t
a
P
,
m
a
g
m
a
r
i
V
,
a
k
r
a
w
D
,
t
o
k
a
R
j
,
a
h
t
n
a
k
s
n
a
B
r
a
g
a
n
r
a
d
n
e
r
u
S
,
r
u
p
n
a
h
d
n
a
R
,
r
a
g
a
n
m
a
J
J
G
-
2
2
-
9
1
0
2
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
g
n
i
t
a
c
d
a
r
E
i
)
i
(
1
2
-
9
1
0
2
,
a
k
r
a
w
D
,
t
a
r
u
S
,
d
a
b
a
d
e
m
h
A
,
r
a
g
a
n
r
a
d
n
e
r
u
S
a
h
t
n
a
k
s
a
n
a
B
e
r
o
a
J
l
t
a
r
a
u
G
j
s
e
Y
,
n
o
i
t
i
r
t
u
n
a
m
d
n
a
l
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
y
t
r
e
v
o
p
,
r
e
g
n
u
h
,
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
g
n
i
t
o
m
o
r
P
)
i
i
i
(
e
r
a
c
n
e
m
o
w
g
n
i
r
e
w
o
p
m
e
,
y
t
i
l
a
u
q
e
r
e
d
n
e
g
1
2
-
7
1
0
2
J
R
-
e
r
o
a
J
l
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
j
t
a
r
a
u
G
&
s
e
Y
;
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
.
0
0
0
0
0
1
5
7
1
,
,
.
0
0
0
0
0
0
0
0
1
,
,
.
0
0
0
0
0
0
0
3
,
.
0
0
0
0
0
0
0
0
2
,
,
.
0
0
0
0
0
5
5
6
3
,
,
.
0
0
0
0
0
0
0
0
4
,
,
1
2
-
0
2
0
2
i
s
t
c
i
r
t
s
d
8
s
s
o
r
c
A
t
a
r
a
u
G
j
s
e
Y
1
2
-
0
2
0
2
h
t
a
r
o
J
J
G
f
o
m
a
s
s
A
s
e
Y
2
2
-
1
2
0
2
l
e
r
o
a
J
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
t
n
e
m
p
o
e
v
e
d
l
l
a
r
u
r
)
x
(
n
o
i
t
n
e
v
r
e
t
n
i
l
s
t
c
e
o
r
p
j
l
e
v
e
o
r
c
M
i
s
t
c
i
r
t
s
d
3
3
i
2
2
-
0
2
0
2
l
l
a
-
n
a
h
t
s
a
a
R
n
a
P
j
n
a
h
t
s
a
a
R
j
s
e
Y
1
2
0
2
-
7
1
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
l
a
t
n
e
m
n
o
r
i
v
n
e
l
t
n
e
m
p
o
e
v
e
d
y
t
i
c
n
e
e
r
G
g
n
i
r
u
s
n
e
)
v
i
(
d
n
a
t
r
a
m
S
r
e
m
r
a
B
;
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
a
h
s
k
a
K
-
E
t
c
e
o
r
P
j
i
)
g
n
n
r
a
e
L
-
E
(
;
y
t
i
l
i
i
b
a
n
a
t
s
u
s
6
7
8
199
l
i
a
m
n
A
d
n
a
y
r
d
n
a
b
s
u
H
r
a
h
g
d
n
a
N
-
t
c
e
o
r
P
j
f
o
M
&
O
l
s
d
e
fi
n
e
e
r
G
i
d
a
w
n
a
g
n
A
j
t
c
e
o
r
p
1
2
3
4
s
m
o
o
r
s
s
a
C
t
r
a
m
S
l
e
r
u
t
c
u
r
t
s
a
r
f
n
i
&
n
o
i
t
a
d
a
r
g
p
u
g
n
h
s
i
i
l
b
a
t
s
E
5
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6
8
5
1
0
0
0
0
R
S
C
O
D
R
A
N
d
t
L
t
v
P
l
j
a
a
w
S
9
2
1
2
0
0
0
0
R
S
C
a
w
e
S
n
a
J
r
e
m
r
a
B
i
t
i
m
a
S
9
2
1
2
0
0
0
0
R
S
C
a
w
e
S
n
a
J
r
e
m
r
a
B
1
6
1
0
0
0
0
0
R
S
C
t
d
r
a
h
k
c
o
W
n
o
i
t
a
d
n
u
o
F
i
t
i
m
a
S
1
0
9
0
0
0
0
0
R
S
C
i
a
d
n
I
e
g
A
p
e
H
l
A
N
A
N
e
f
i
l
a
d
o
V
i
t
k
a
S
n
u
S
o
N
o
N
o
N
o
N
o
N
o
N
o
N
o
N
1
2
4
1
0
0
0
0
R
S
C
n
a
h
t
s
n
a
S
a
r
a
h
D
o
N
9
7
9
2
0
0
0
0
R
S
C
A
R
S
C
G
7
5
6
0
0
0
0
0
R
S
C
,
s
d
e
e
S
A
N
g
n
i
l
l
i
j
F
a
u
h
b
r
a
h
C
n
o
i
t
a
t
s
o
N
o
N
o
N
A
N
A
N
s
e
Y
)
)
6
(
5
3
1
n
o
i
t
c
e
S
E
n
i
(
.
0
0
0
0
0
0
5
3
,
-
2
2
-
1
2
0
2
i
r
a
v
a
d
o
G
t
s
a
E
m
a
s
s
A
s
e
Y
.
0
0
0
0
0
0
0
2
1
,
,
.
0
0
0
0
0
0
0
0
3
,
,
.
0
0
0
0
0
9
7
1
3
,
,
.
0
0
0
0
0
3
4
4
7
,
,
.
0
0
0
0
0
0
0
3
6
,
,
.
0
0
0
0
0
0
6
5
9
,
,
e
r
o
a
J
l
A
N
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
1
2
-
8
1
0
2
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
1
2
-
0
2
0
2
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
e
r
o
a
J
l
e
r
o
a
J
l
i
r
e
t
a
w
g
n
k
n
i
r
d
e
f
a
s
l
e
b
a
l
i
a
v
a
g
n
k
a
m
i
)
i
(
O
R
2
3
d
O
l
f
o
M
&
O
0
1
-
.
0
0
0
0
0
0
0
5
,
2
2
-
9
1
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
f
o
n
o
i
t
o
m
o
r
p
)
i
i
(
n
i
l
l
s
t
n
a
p
r
a
o
S
f
o
M
&
O
.
0
0
0
0
0
8
9
6
0
1
,
,
.
0
0
0
0
0
0
0
0
0
1
,
,
2
2
-
4
1
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
n
o
i
t
a
t
i
n
a
s
d
n
a
e
r
a
c
i
g
n
d
u
c
n
l
i
e
r
a
c
.
0
0
0
0
0
0
2
6
9
,
,
.
0
0
0
0
0
0
5
9
8
,
,
2
2
-
5
1
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
;
n
o
i
t
a
c
u
d
e
,
l
a
t
i
p
s
o
H
t
c
i
r
t
s
D
-
i
r
o
t
c
o
D
t
s
i
l
i
a
c
e
p
S
l
s
o
o
h
c
S
h
s
r
a
d
A
r
e
m
r
a
B
n
e
e
r
G
r
e
m
r
a
B
n
a
e
C
-
l
n
o
i
t
a
t
i
n
a
S
l
a
t
i
p
s
o
H
r
e
m
r
a
B
.
0
0
0
0
0
2
6
6
1
,
,
.
0
0
0
0
0
0
9
7
3
,
,
0
2
-
6
1
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
n
a
V
h
t
l
a
e
H
e
l
i
b
o
M
4
1
.
0
0
0
0
0
8
6
5
1
1
,
,
.
0
0
0
0
0
3
3
9
1
1
,
,
1
2
-
0
1
0
2
,
r
e
m
r
a
B
.
0
0
0
0
0
4
5
1
7
,
,
.
0
0
0
0
0
0
5
6
8
,
,
1
2
-
8
1
0
2
d
n
a
r
u
p
n
a
h
d
a
R
J
G
-
a
k
r
a
w
D
J
R
-
e
r
o
h
c
n
a
S
d
n
a
r
e
m
r
a
B
d
n
a
d
a
r
a
h
T
J
G
-
m
a
g
m
a
n
r
i
V
J
R
r
o
f
-
i
l
n
a
a
m
a
d
u
G
n
a
h
t
s
a
a
R
j
j
t
a
r
a
u
G
&
s
e
Y
n
a
h
t
s
a
a
R
j
j
t
a
r
a
u
G
&
s
e
Y
.
0
0
0
0
0
2
7
5
2
,
,
.
0
0
0
0
0
0
0
5
1
,
,
2
2
-
9
1
0
2
m
a
g
m
n
a
r
i
V
t
a
r
a
u
G
j
s
e
Y
f
o
n
o
i
t
o
m
o
r
p
)
i
i
(
l
k
s
e
d
p
e
H
y
t
i
n
u
m
m
o
C
5
1
n
o
i
t
a
c
u
d
e
o
t
s
e
i
t
i
n
u
m
m
o
c
k
n
i
l
o
t
s
e
m
e
h
c
s
t
v
o
G
.
0
0
0
0
0
3
8
1
4
,
,
.
0
0
0
0
0
0
0
0
3
,
,
1
2
-
0
2
0
2
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
s
l
l
i
k
s
l
a
n
o
i
t
a
c
o
v
i
g
n
c
n
a
h
n
e
f
o
n
o
i
t
a
d
a
r
g
p
u
a
r
f
n
I
r
e
m
r
a
B
C
E
C
n
i
C
E
C
.
0
0
0
0
0
3
8
6
9
,
,
.
0
0
0
0
0
0
0
5
6
1
,
,
1
2
-
6
1
0
2
l
e
r
o
a
J
&
r
e
m
r
a
B
n
a
h
t
s
a
a
R
j
s
e
Y
t
n
e
m
y
o
p
m
e
l
)
i
i
(
s
m
a
r
g
o
r
P
g
n
n
a
r
T
i
i
l
l
i
k
S
6
1
y
t
i
n
u
m
m
o
C
g
n
h
s
i
i
l
b
a
t
s
E
P
A
-
t
n
a
p
O
R
l
O
R
2
9
d
O
l
f
o
M
&
O
s
t
n
a
P
l
s
t
n
a
P
l
1
1
2
1
3
1
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
e
r
u
t
c
u
r
t
s
a
r
f
n
I
t
n
e
m
p
o
e
v
e
D
l
y
t
i
n
u
m
m
o
C
9
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
1
1
0
1
9
8
7
6
5
4
3
2
1
200
< BACK TO CONTENTS
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
)
6
(
5
3
1
n
o
i
t
c
e
S
E
n
i
(
.
0
0
0
0
0
0
4
3
2
,
,
.
0
0
0
0
0
0
0
0
4
,
,
-
.
0
0
0
0
0
0
0
0
6
,
,
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
0
2
-
7
1
0
2
r
u
p
h
d
o
J
n
a
h
t
s
a
a
R
j
s
e
Y
t
n
e
m
y
o
p
m
e
l
)
i
i
(
,
s
k
r
o
W
p
m
a
v
e
R
l
i
i
v
C
7
1
A
N
r
u
p
h
d
o
J
n
a
h
t
s
a
a
R
j
s
e
Y
s
l
l
i
k
s
l
a
n
o
i
t
a
c
o
v
i
g
n
c
n
a
h
n
e
e
c
n
a
r
u
s
n
I
,
y
t
i
c
i
r
t
c
e
e
l
,
y
t
i
r
u
c
e
S
,
G
&
F
E
o
C
C
r
o
f
,
V
T
C
C
T
,
I
,
l
a
c
i
r
t
c
e
E
l
s
m
a
r
g
o
r
P
g
n
n
a
r
T
i
i
l
l
i
k
S
1
1
0
1
9
8
7
6
5
4
3
2
1
A
N
A
N
i
c
p
m
y
a
r
a
P
l
D
B
T
A
N
A
N
f
o
e
e
t
t
i
m
m
o
C
i
a
d
n
I
i
g
n
k
n
i
r
D
R
D
S
.
r
e
t
a
W
A
N
,
s
e
s
i
r
p
r
e
t
n
E
y
a
j
i
V
o
N
j
n
a
a
r
a
g
a
y
h
T
S
N
L
,
n
e
d
r
a
g
y
r
e
s
r
u
N
A
N
i
h
t
k
a
S
,
M
P
A
o
N
A
N
A
N
-
-
s
e
Y
s
e
Y
A
N
l
i
a
c
o
s
i
l
s
a
u
h
T
o
N
l
i
a
c
o
s
m
a
g
a
y
a
a
h
D
)
t
s
u
r
t
e
r
a
f
l
e
w
t
n
e
m
r
e
w
o
p
m
e
/
y
t
e
c
o
s
i
l
l
e
B
/
t
s
u
r
t
n
o
i
t
a
c
u
d
e
n
e
m
o
w
d
n
a
A
N
-
-
s
e
Y
A
N
L
N
V
V
J
/
C
C
E
M
A
N
)
.
0
0
0
0
0
3
2
6
4
,
,
.
0
0
0
0
0
0
0
0
4
,
,
1
2
-
7
1
0
2
s
t
c
i
r
t
s
d
i
l
l
A
&
n
a
h
t
s
a
a
R
j
s
e
Y
s
t
r
o
p
s
g
n
i
t
o
m
o
r
P
)
i
i
v
(
a
r
a
P
o
t
t
r
o
p
p
u
S
8
1
r
e
m
r
a
B
E
O
C
C
n
i
0
0
.
0
0
0
,
0
8
9
,
7
3
1
0
0
.
0
0
0
,
3
6
0
,
4
4
1
s
t
r
o
p
s
t
a
r
a
u
G
j
l
i
c
p
m
y
a
r
a
p
d
n
a
s
e
t
e
h
t
A
l
A
l
a
t
o
T
-
b
u
S
s
a
G
&
l
i
O
r
e
p
p
o
C
.
0
0
7
6
3
5
1
9
7
,
,
.
0
0
0
0
0
5
9
8
0
1
,
,
2
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
i
h
b
a
r
u
S
a
r
i
m
a
T
9
1
i
g
n
d
u
c
n
l
i
e
r
a
c
.
0
0
3
6
2
4
2
1
6
3
,
,
.
0
0
3
6
2
9
6
0
7
3
,
,
2
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
g
n
i
r
u
s
n
e
)
v
i
(
i
d
u
k
u
h
t
o
o
h
T
i
a
m
u
s
a
P
0
2
l
a
t
n
e
m
n
o
r
i
v
n
e
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
n
o
i
t
a
t
i
n
a
s
d
n
a
e
r
a
c
.
0
0
5
1
2
5
9
9
,
.
0
0
0
0
0
0
0
0
1
,
,
1
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
y
t
i
l
i
i
b
a
n
a
t
s
u
s
i
p
h
s
r
a
o
h
c
S
l
.
0
0
6
4
8
7
4
9
1
,
,
.
0
0
0
0
4
6
1
1
2
,
,
2
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
l
s
e
e
h
w
n
o
h
t
l
a
e
H
1
2
2
2
i
g
n
d
u
c
n
l
i
e
r
a
c
.
0
0
0
0
3
2
9
2
3
,
,
.
0
0
2
5
7
2
0
4
3
,
,
.
0
0
3
0
7
0
4
3
3
,
,
.
0
0
3
0
7
0
4
3
3
,
,
2
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
t
n
e
m
y
o
p
m
e
l
)
i
i
(
e
c
r
u
o
s
e
R
n
a
m
o
W
3
2
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
n
e
m
o
w
g
n
i
r
e
w
o
p
m
e
,
y
t
i
l
a
u
q
e
r
e
d
n
e
g
n
o
i
t
a
c
o
v
g
n
c
n
a
h
n
e
i
n
e
m
o
w
g
n
o
m
a
s
l
l
i
k
s
g
n
i
t
o
m
o
r
p
)
i
i
i
(
e
r
t
n
e
C
2
2
-
9
1
0
2
i
d
u
k
u
h
t
o
o
h
T
u
d
a
N
l
i
m
a
T
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
l
a
t
i
p
s
o
H
&
l
o
o
h
c
S
4
2
i
g
n
d
u
c
n
l
i
e
r
a
c
j
t
c
e
o
r
P
0
0
.
4
9
6
,
5
1
6
,
3
5
0
0
.
8
1
1
,
4
2
8
,
7
5
B
l
a
t
o
T
-
b
u
S
r
e
p
p
o
C
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
201
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
A
N
-
G
A
H
V
1
.
-
b
o
m
a
v
e
S
.
2
y
r
a
t
n
u
o
V
l
.
1
h
t
l
a
e
H
3
5
1
1
0
0
0
0
R
S
C
f
o
n
o
i
t
a
c
o
s
s
A
i
)
G
A
H
V
(
a
o
G
b
o
m
a
v
e
S
.
2
-
n
o
i
t
a
d
n
u
o
F
t
d
r
a
h
k
c
o
W
1
6
1
0
0
0
0
0
R
S
C
1
6
1
0
0
0
0
0
R
S
C
t
d
r
a
h
k
c
o
W
;
n
o
i
t
a
d
n
u
o
F
t
d
r
a
h
k
c
o
W
n
o
i
t
a
d
n
u
o
F
o
N
o
N
o
N
A
N
A
N
s
e
Y
A
N
A
N
s
e
Y
s
e
Y
9
5
2
0
0
0
0
0
R
S
C
I
F
A
B
o
N
)
-
-
-
0
0
0
0
0
)
6
(
5
3
1
n
o
i
t
c
e
S
E
n
i
(
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
.
0
0
0
0
0
7
6
4
7
,
,
.
0
0
0
0
0
0
0
7
3
,
,
.
0
0
7
4
9
5
5
8
3
,
,
.
0
0
0
0
0
0
0
1
6
,
,
2
2
0
2
-
4
1
0
2
t
s
e
W
,
a
o
G
h
t
r
o
N
,
a
o
G
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
l
i
a
c
d
e
M
y
t
i
n
u
m
m
o
C
6
2
.
0
0
7
4
9
2
2
3
1
1
,
,
.
0
0
0
0
0
0
0
8
9
,
,
m
u
b
h
g
n
S
i
d
n
a
h
k
r
a
h
J
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
i
g
n
d
u
c
n
l
i
e
r
a
c
e
l
i
b
o
M
&
e
r
t
n
e
c
t
i
n
u
h
t
l
a
e
h
C
l
a
t
o
T
-
b
u
S
e
r
O
n
o
r
I
a
d
u
g
u
s
r
a
h
J
-
m
u
i
i
n
m
u
A
l
.
5
3
7
7
6
8
9
3
3
,
,
.
0
0
0
0
0
7
5
9
2
,
,
2
2
0
2
-
0
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
P
)
i
(
t
i
n
U
h
t
l
a
e
H
e
l
i
b
o
M
7
2
.
0
0
0
0
8
3
9
4
2
,
,
.
0
0
0
0
0
7
9
7
2
,
,
2
2
0
2
-
3
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
e
v
i
r
d
s
s
e
n
i
l
l
n
a
e
c
e
g
a
l
l
i
V
9
2
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
i
g
n
d
u
c
n
l
i
e
r
a
c
.
4
2
8
0
4
2
8
5
4
,
,
.
0
0
0
0
0
0
0
0
6
,
,
.
0
0
0
3
2
8
6
8
,
.
0
0
0
0
0
0
2
6
,
6
2
0
2
-
9
0
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
g
n
i
t
o
m
o
r
p
)
i
i
(
l
o
o
h
c
S
V
A
D
a
t
n
a
d
e
V
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
n
o
i
t
a
t
i
n
a
s
d
n
a
e
r
a
c
0
2
0
2
-
9
0
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
,
n
o
i
t
a
c
u
d
e
,
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
l
a
n
o
i
t
a
c
u
d
E
r
e
h
t
O
Y
V
V
V
:
s
e
v
i
t
a
i
t
i
n
I
l
a
n
o
i
t
i
d
d
A
/
t
c
e
o
r
P
j
l
a
i
r
o
t
u
T
/
r
e
h
c
a
e
t
m
a
r
g
o
r
p
s
e
e
f
/
l
o
o
h
c
s
e
g
d
i
r
B
/
s
e
s
s
a
C
l
l
s
e
s
s
a
c
n
o
i
t
a
r
a
p
e
r
p
m
a
x
e
e
v
i
t
i
t
e
p
m
o
C
0
3
1
3
2
2
0
2
-
5
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
:
i
t
u
r
g
a
J
t
c
e
o
r
P
j
8
2
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
i
g
n
d
u
c
n
l
i
e
r
a
c
I
S
D
A
/
V
H
I
f
o
n
o
i
t
n
e
v
e
r
P
i
g
n
d
u
c
n
l
i
e
r
a
c
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
5
2
0
2
-
0
2
0
2
a
g
r
u
d
a
r
t
i
h
C
a
k
a
t
a
n
r
a
K
s
e
Y
d
o
o
h
i
l
e
v
i
l
)
i
i
(
d
o
o
h
i
l
i
e
v
L
e
v
i
t
a
n
r
e
t
l
A
5
2
t
n
e
m
e
c
n
a
h
n
e
j
t
c
e
o
r
P
s
e
i
t
i
n
u
t
r
o
p
p
O
e
r
O
n
o
r
I
n
e
m
o
w
g
n
i
r
e
w
o
p
m
e
,
y
t
i
l
a
u
q
e
r
e
d
n
e
g
l
a
t
n
e
m
n
o
r
i
v
n
e
g
n
i
r
u
s
n
e
)
v
i
(
.
s
t
c
e
o
r
p
j
g
n
i
t
o
m
o
r
p
)
i
i
i
(
y
t
i
l
i
i
b
a
n
a
t
s
u
s
1
1
0
1
9
8
7
6
5
4
3
2
1
202
< BACK TO CONTENTS
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
.
0
0
9
4
5
8
6
5
,
.
0
0
0
0
0
0
3
4
,
1
1
0
1
9
8
7
6
5
4
3
2
1
7
2
9
6
0
0
0
0
R
S
C
n
o
i
t
a
c
u
d
E
l
i
a
c
o
S
o
N
'
s
n
e
m
o
W
r
o
f
s
s
e
n
e
r
a
w
A
7
1
6
1
0
0
0
0
R
S
C
n
o
i
t
a
d
n
u
o
F
a
t
n
a
d
e
V
A
N
A
N
i
g
n
n
r
a
e
L
m
e
t
S
d
e
t
i
i
m
L
e
t
a
v
i
r
P
a
y
a
b
a
m
a
S
a
l
i
h
a
M
d
e
t
i
m
L
i
i
t
i
m
a
S
e
e
h
k
u
m
u
h
a
B
i
l
m
x
a
a
h
b
u
S
o
N
o
N
o
N
)
A
N
A
N
s
e
Y
s
e
Y
A
N
A
N
0
5
6
0
0
0
0
0
R
S
C
n
a
h
t
u
r
a
n
u
P
y
r
a
t
n
u
o
V
l
i
n
o
i
t
a
s
n
a
g
r
O
o
N
3
5
4
0
1
0
0
0
R
S
C
i
h
s
o
t
n
a
S
a
a
M
o
N
n
o
i
t
a
d
n
u
o
F
l
n
a
y
a
k
n
a
J
0
0
0
0
0
0
0
-
-
-
)
6
(
5
3
1
n
o
i
t
c
e
S
E
n
i
(
.
2
9
6
9
0
1
4
,
.
0
0
0
0
0
0
0
1
,
2
2
0
2
-
9
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
i
g
n
d
u
c
n
l
i
,
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
s
l
l
i
k
s
i
a
y
d
O
5
n
i
e
r
t
n
e
C
l
o
o
h
c
s
m
u
d
e
m
i
i
e
c
n
e
c
S
-
i
n
M
a
t
n
a
d
e
V
i
3
3
.
7
7
0
7
1
5
4
2
,
.
0
0
0
0
0
0
0
4
,
2
2
0
2
-
8
0
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
g
n
i
t
o
m
o
r
p
)
i
i
i
(
:
t
n
e
m
r
e
w
o
p
m
E
n
e
m
o
W
4
3
,
y
t
i
l
a
u
q
e
r
e
d
n
e
g
,
i
p
o
-
o
C
m
x
a
a
h
b
u
S
l
.
5
4
5
5
1
5
6
7
1
,
,
.
0
0
0
0
0
0
0
4
1
,
,
2
2
0
2
-
7
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
g
n
i
r
u
s
n
e
)
v
i
(
j
t
c
e
o
r
P
:
y
t
i
v
i
t
c
A
m
r
a
F
5
3
g
n
i
r
e
w
o
p
m
e
o
r
c
M
i
,
g
n
d
i
l
i
u
B
y
t
i
c
a
p
a
C
,
n
e
m
o
w
s
e
s
i
r
p
r
e
t
n
E
-
.
2
7
9
4
9
7
7
5
1
,
,
.
0
0
0
6
9
0
9
,
.
0
0
0
0
0
0
5
1
,
.
0
0
0
0
0
0
0
8
1
,
,
2
2
0
2
-
0
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
2
2
0
2
-
0
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
e
t
o
m
o
r
p
o
t
g
n
n
a
r
t
i
i
l
a
t
n
e
m
n
o
r
i
v
n
e
y
t
i
l
i
i
b
a
n
a
t
s
u
s
)
i
i
v
(
s
t
r
o
p
S
g
n
i
t
r
o
p
p
u
S
&
i
h
h
d
i
r
m
a
S
a
k
v
e
e
J
i
e
v
i
t
a
i
t
i
n
i
r
e
h
t
o
e
c
n
a
a
b
l
l
i
a
c
g
o
o
c
e
l
,
y
t
i
l
i
i
b
a
n
a
t
s
u
s
s
t
r
o
p
s
l
a
r
u
r
l
a
t
n
e
m
n
o
r
i
v
n
e
g
n
i
r
u
s
n
e
)
v
i
(
&
n
o
i
t
a
t
n
a
P
l
e
c
n
a
n
e
t
n
a
M
i
6
3
7
3
5
4
.
7
9
9
,
1
3
6
,
5
1
0
0
.
0
0
0
,
4
5
1
,
7
1
D
l
a
t
o
T
-
b
u
S
a
d
u
g
u
s
r
a
h
J
-
m
u
i
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
i
n
m
u
A
l
.
0
0
0
0
0
1
3
4
1
3
,
,
.
0
0
0
0
0
0
0
5
2
3
,
,
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
l
a
t
i
p
s
o
H
a
t
n
a
d
e
V
9
3
i
g
n
d
u
c
n
l
i
e
r
a
c
.
0
0
0
0
0
1
1
2
1
,
,
.
0
0
0
0
0
8
5
3
1
,
,
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
n
a
J
i
h
s
o
t
n
a
S
a
a
M
0
4
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
i
g
n
d
u
c
n
l
i
e
r
a
c
u
r
d
n
u
k
a
k
n
a
B
,
n
a
y
a
K
l
h
t
l
a
e
h
e
v
n
i
t
n
e
v
e
r
p
e
r
a
c
203
.
0
0
0
0
0
0
0
5
,
3
2
0
2
-
0
2
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
g
n
i
r
u
s
n
e
)
v
i
(
y
g
r
e
n
e
S
S
A
M
O
B
I
8
3
l
a
t
n
e
m
n
o
r
i
v
n
e
n
o
i
t
c
u
d
o
r
p
,
y
t
i
l
i
i
b
a
n
a
t
s
u
s
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
1
2
0
2
-
3
1
0
2
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
g
n
i
t
o
m
o
r
p
)
i
i
(
y
c
a
r
e
t
i
L
r
e
t
u
p
m
o
C
2
3
i
g
n
d
u
c
n
l
i
,
n
o
i
t
a
c
u
d
e
y
r
e
h
p
i
r
e
p
d
n
u
o
r
a
n
o
i
t
a
c
o
v
g
n
c
n
a
h
n
e
i
n
o
i
t
a
c
u
d
e
l
i
a
c
e
p
s
l
t
n
e
m
y
o
p
m
e
d
n
a
s
e
g
a
l
l
i
v
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
A
N
A
N
s
e
Y
< BACK TO CONTENTS
8
-
n
o
i
t
a
t
n
e
m
e
l
p
m
i
f
o
e
d
o
M
y
c
n
e
g
a
g
n
i
t
n
e
m
e
l
p
m
i
h
g
u
o
r
h
t
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
7
f
o
e
d
o
M
-
n
e
m
e
l
p
m
i
-
n
o
i
t
a
t
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
A
N
A
N
s
e
Y
2
4
1
0
0
0
0
R
S
C
n
a
h
t
s
n
a
S
a
r
a
h
D
o
N
9
2
1
2
0
0
0
0
R
S
C
S
S
J
B
A
N
E
M
S
2
r
e
w
o
P
A
N
A
N
A
N
A
N
A
N
A
N
o
N
A
N
A
N
s
e
Y
s
e
Y
s
e
Y
6
t
n
u
o
m
A
r
o
f
t
n
e
p
s
e
h
t
5
t
c
e
j
o
r
p
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
E
)
n
i
(
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
.
0
0
5
9
4
5
5
6
0
1
,
,
l
J
R
-
e
r
o
a
J
&
r
e
m
r
a
B
,
t
a
r
a
u
G
j
,
n
a
h
t
s
a
a
R
j
,
t
o
k
a
R
j
,
a
h
t
n
a
k
s
n
a
B
,
r
a
g
a
n
m
a
J
,
a
k
r
a
w
D
,
n
a
t
a
P
,
m
a
g
m
a
r
i
V
,
r
u
p
n
a
h
d
n
a
R
a
r
h
d
n
A
-
i
r
a
v
a
d
o
G
t
s
a
E
J
G
-
r
a
g
a
n
r
a
d
n
e
r
u
S
m
a
s
s
A
-
h
t
a
r
o
J
h
s
e
d
a
r
P
h
s
e
d
a
r
P
a
r
h
d
n
A
d
n
a
m
a
s
s
A
f
e
i
l
i
e
r
g
n
d
u
c
n
l
i
4
l
a
c
o
L
a
e
r
a
/
s
e
Y
(
)
o
N
3
2
f
o
t
s
i
l
e
h
t
m
o
r
f
m
e
t
I
e
l
u
d
e
h
c
s
n
i
s
e
i
t
i
v
i
t
c
a
t
c
A
e
h
t
o
t
I
I
V
.
t
c
e
j
o
r
P
e
h
t
f
o
e
m
a
N
1
.
l
S
.
o
N
s
a
G
&
l
i
O
I
I
I
)
c
(
8
E
L
B
A
T
-
S
E
T
V
T
C
A
R
S
C
N
O
T
R
O
P
E
R
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
R
S
C
a
-
i
j
n
a
v
e
e
n
a
S
t
c
e
o
r
P
j
1
,
t
n
e
m
e
g
a
n
a
m
r
e
t
s
a
s
d
i
)
i
i
x
(
e
r
a
c
h
t
l
a
e
h
9
1
-
D
V
O
C
I
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
f
o
t
x
e
t
n
o
c
n
i
e
v
i
t
a
i
t
i
n
i
.
0
0
0
0
0
0
0
2
2
,
,
l
J
R
-
e
r
o
a
J
&
r
e
m
r
a
B
,
i
l
h
e
D
,
n
a
h
t
s
a
a
R
j
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
I
D
V
O
C
"
n
o
e
v
i
r
d
s
s
e
n
e
r
a
w
A
2
,
n
a
t
a
P
,
m
a
g
m
a
r
i
V
d
n
a
m
a
s
s
A
,
t
a
r
a
u
G
j
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
i
"
e
n
c
c
a
V
.
0
0
0
0
0
0
0
0
2
,
,
.
0
0
0
0
0
0
0
5
4
,
,
,
t
o
k
a
R
j
,
a
h
t
n
a
k
s
n
a
B
,
r
a
g
a
n
m
a
J
,
a
k
r
a
w
D
J
G
-
r
a
g
a
n
r
a
d
n
e
r
u
S
,
r
u
p
n
a
h
d
n
a
R
-
i
r
a
v
a
d
o
G
t
s
a
E
h
s
e
d
a
r
P
a
r
h
d
n
A
m
a
s
s
A
-
h
t
a
r
o
J
l
e
r
o
a
J
&
r
e
m
r
a
B
r
e
m
r
a
B
h
s
e
d
a
r
P
a
r
h
d
n
A
e
r
a
c
h
t
l
a
e
h
n
a
h
t
s
a
a
R
j
n
a
h
t
s
a
a
R
j
s
e
Y
s
e
Y
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
)
i
i
(
-
.
0
0
0
0
0
0
2
3
7
,
,
0
0
.
5
9
4
,
5
7
6
,
6
2
.
0
0
2
4
0
1
4
1
1
,
,
i
d
u
k
u
h
t
o
o
h
T
u
d
a
n
l
i
m
a
T
s
e
Y
A
N
n
a
h
t
s
a
a
R
j
s
e
Y
i
n
o
i
t
a
r
t
s
n
m
d
A
R
S
C
i
i
n
o
i
t
a
r
t
s
n
m
d
A
R
S
C
i
.
0
0
5
7
5
3
7
9
,
.
0
0
9
2
9
6
0
0
0
1
,
,
i
d
u
k
u
h
t
o
o
h
T
u
d
a
n
l
i
m
a
T
s
e
Y
t
n
e
m
p
o
e
v
e
D
l
l
a
r
u
R
)
x
(
i
d
u
k
u
h
t
o
o
h
T
u
d
a
n
l
i
m
a
T
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
l
a
t
i
p
s
o
H
t
c
i
r
t
s
D
o
t
t
r
o
p
p
u
S
i
s
g
a
b
k
s
e
D
g
n
d
v
o
r
P
i
i
t
r
o
p
p
u
s
t
n
e
m
p
u
q
e
i
i
n
m
d
a
m
a
r
g
o
r
P
R
S
C
3
4
5
t
n
e
m
s
s
e
s
s
a
d
e
e
N
,
t
i
d
u
A
R
S
C
a
r
f
n
I
&
y
t
i
n
u
m
m
o
C
s
r
e
h
t
O
d
n
a
y
d
u
t
S
t
n
e
m
p
o
e
v
e
D
l
f
e
i
l
I
e
r
D
V
O
C
6
7
8
A
l
a
t
o
T
-
b
u
S
s
a
G
&
l
i
O
r
e
p
p
o
C
0
0
.
6
4
5
,
1
2
1
,
2
1
e
r
a
c
h
t
l
a
e
h
B
l
a
t
o
T
-
b
u
S
r
e
p
p
o
C
-
n
o
i
t
a
t
n
e
m
e
l
p
m
I
f
o
e
d
o
M
y
c
n
e
g
A
g
n
i
t
n
e
m
e
l
p
m
I
h
g
u
o
r
h
T
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
8
3
6
3
0
0
0
0
R
S
C
8
3
6
3
0
0
0
0
R
S
C
1
6
5
2
0
0
0
0
R
S
C
e
m
a
N
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
f
o
e
d
o
M
-
s
n
o
i
t
a
t
n
e
m
e
l
p
m
I
&
t
n
e
m
p
o
e
v
e
D
l
r
o
f
m
u
r
o
F
d
e
t
a
r
g
e
t
n
I
r
o
f
m
u
r
o
F
d
e
t
a
r
g
e
t
n
I
h
c
r
a
e
s
e
R
&
t
n
e
m
p
o
e
v
e
D
l
i
t
k
a
h
s
a
h
a
M
n
o
i
t
a
d
n
u
o
F
h
c
r
a
e
s
e
R
o
N
o
N
o
N
)
)
6
(
5
3
1
n
o
i
t
c
e
S
E
n
i
(
t
n
u
o
m
A
d
e
r
r
e
f
s
n
a
r
t
t
n
e
p
s
n
U
o
t
R
S
C
r
o
f
t
n
u
o
c
c
A
t
c
e
j
o
r
p
e
h
t
r
e
p
s
a
t
n
u
o
m
A
n
i
t
n
e
p
s
t
n
e
r
r
u
c
e
h
t
r
a
e
Y
l
a
i
c
n
a
n
fi
)
E
n
i
(
t
n
u
o
m
A
r
o
f
d
e
t
a
c
o
l
l
a
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
-
-
-
-
-
-
.
0
0
0
0
0
7
5
1
3
,
,
-
.
0
0
0
0
0
4
2
9
1
,
,
.
0
0
0
0
0
9
3
5
,
.
0
0
0
0
0
0
6
3
4
,
,
.
0
0
0
0
0
8
0
1
1
,
,
.
0
0
0
0
0
0
0
0
2
,
,
.
0
0
0
0
0
0
0
0
0
1
,
,
.
0
0
0
0
0
2
6
2
8
3
,
,
.
0
0
0
0
0
6
2
3
1
5
,
,
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
l
a
c
o
L
a
e
r
a
)
o
N
/
s
e
Y
(
n
i
s
e
i
t
i
v
i
t
c
a
f
o
t
s
i
l
o
t
I
I
V
e
l
u
d
e
h
c
S
e
h
t
m
o
r
f
m
e
t
I
t
c
A
e
h
t
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
.
l
S
.
o
N
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
e
r
t
n
e
C
e
r
a
C
d
l
i
h
C
1
4
l
o
o
h
c
S
o
t
t
r
o
p
p
u
S
2
4
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
g
n
i
t
o
m
o
r
p
)
i
i
i
(
t
n
e
m
r
e
w
o
p
m
e
n
e
m
o
W
3
4
n
e
m
o
w
g
n
i
r
e
w
o
p
m
e
,
y
t
i
l
a
u
q
e
r
e
d
n
e
g
5
2
0
2
-
9
1
0
2
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
d
o
o
h
i
l
e
v
i
l
)
i
i
(
m
r
a
f
-
n
o
N
&
m
r
a
F
4
4
t
n
e
m
e
c
n
a
h
n
e
s
t
c
e
o
r
p
j
d
o
o
h
i
l
e
v
i
l
E
l
a
t
o
T
-
b
u
S
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
5
4
.
8
3
6
,
2
1
8
,
6
5
2
0
0
.
8
1
1
,
7
6
1
,
0
8
2
)
E
+
D
+
C
+
B
+
A
(
l
a
t
o
T
1
1
0
1
9
8
7
6
5
4
3
2
1
204
205
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
8
-
n
o
i
t
a
t
n
e
m
e
l
p
m
i
f
o
e
d
o
M
y
c
n
e
g
a
g
n
i
t
n
e
m
e
l
p
m
i
h
g
u
o
r
h
t
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
7
f
o
e
d
o
M
-
n
e
m
e
l
p
m
i
-
n
o
i
t
a
t
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
5
0
2
1
0
0
0
0
R
S
C
i
a
r
n
a
V
o
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
s
e
Y
A
N
A
N
A
N
A
N
s
e
Y
s
e
Y
s
e
Y
s
e
Y
A
N
s
e
Y
A
N
A
N
A
N
A
N
A
N
A
N
s
e
Y
s
e
Y
s
e
Y
s
e
Y
s
e
Y
s
e
Y
< BACK TO CONTENTS
8
-
n
o
i
t
a
t
n
e
m
e
l
p
m
i
f
o
e
d
o
M
y
c
n
e
g
a
g
n
i
t
n
e
m
e
l
p
m
i
h
g
u
o
r
h
t
n
o
i
t
a
r
t
s
i
g
e
R
r
e
b
m
u
n
R
S
C
e
m
a
N
7
f
o
e
d
o
M
-
n
e
m
e
l
p
m
i
-
n
o
i
t
a
t
t
c
e
r
i
D
)
o
N
/
s
e
Y
(
A
N
l
i
a
c
o
S
o
N
.
0
0
6
4
3
7
8
3
9
,
,
.
0
0
0
2
7
0
5
1
1
,
,
.
0
0
3
2
7
5
8
9
,
.
0
0
0
0
6
9
5
,
.
0
0
2
5
1
2
2
1
,
.
0
0
0
6
8
4
2
1
,
0
0
.
6
4
6
,
2
3
7
,
8
1
.
3
9
4
2
7
9
9
1
2
1
,
,
.
2
9
3
0
4
5
0
1
7
2
,
,
m
u
b
h
g
n
S
t
s
e
W
i
,
a
o
G
h
t
r
o
N
,
a
o
G
h
t
u
o
S
,
a
g
r
u
d
a
r
t
i
h
C
g
r
u
d
u
h
d
n
S
i
a
g
r
u
d
a
r
t
i
h
C
a
o
G
h
t
r
o
N
a
o
G
h
t
r
o
N
a
o
G
h
t
r
o
N
a
g
r
u
d
a
r
t
i
h
C
,
a
o
G
h
t
r
o
N
a
o
G
h
t
r
o
N
a
d
u
g
u
s
r
a
h
J
a
d
u
g
u
s
r
a
h
J
6
t
n
u
o
m
A
r
o
f
t
n
e
p
s
e
h
t
5
t
c
e
j
o
r
p
e
h
t
f
o
n
o
i
t
a
c
o
L
.
0
0
5
9
2
9
6
4
2
,
,
.
0
0
4
4
0
4
1
4
1
,
,
.
0
0
5
5
9
5
0
9
,
.
0
0
3
6
1
7
0
8
1
,
,
a
o
G
h
t
u
o
S
&
a
o
G
h
t
r
o
N
a
o
G
h
t
u
o
S
&
a
o
G
h
t
r
o
N
a
o
G
a
o
G
,
a
o
G
h
t
u
o
S
,
a
o
G
h
t
r
o
N
d
n
a
h
k
r
a
h
J
,
a
o
G
m
u
b
h
g
n
S
t
s
e
W
i
d
n
a
h
k
r
a
h
J
a
r
t
h
s
a
r
a
h
a
M
,
a
k
a
t
a
n
r
a
K
,
a
o
G
Y
Y
Y
Y
Y
l
a
t
n
e
m
n
o
r
i
v
n
e
g
n
i
r
u
s
n
e
)
v
i
(
i
g
n
m
r
a
F
o
t
k
c
a
B
0
1
l
i
a
c
g
o
o
c
e
l
,
y
t
i
l
i
i
b
a
n
a
t
s
u
s
,
e
r
a
f
l
e
w
l
i
a
m
n
a
,
e
c
n
a
a
b
l
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
t
n
e
m
p
o
e
v
e
d
l
l
a
r
u
r
)
i
i
(
)
x
(
s
t
c
e
o
r
p
j
o
t
t
r
o
p
p
u
S
&
p
h
s
r
a
o
h
c
S
i
l
j
s
t
c
e
o
r
p
a
r
f
n
i
l
a
r
u
R
s
e
r
t
n
e
c
y
d
u
t
S
l
s
o
o
h
c
s
1
1
2
1
3
1
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
e
r
a
c
h
t
l
a
e
h
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
9
1
-
D
V
O
C
I
4
1
.
0
0
8
8
7
5
0
3
,
a
o
G
h
t
r
o
N
a
o
G
s
e
Y
n
e
m
o
w
g
n
i
r
e
w
o
p
m
e
l
a
t
n
e
m
n
o
r
i
v
n
e
g
n
i
r
u
s
n
e
y
t
i
l
i
i
b
a
n
a
t
s
u
s
)
i
i
i
(
)
v
i
(
n
a
m
r
i
N
m
a
r
G
9
e
r
O
n
o
r
I
6
t
n
u
o
m
A
r
o
f
t
n
e
p
s
e
h
t
5
t
c
e
j
o
r
p
e
h
t
f
o
n
o
i
t
a
c
o
L
t
c
e
E
)
n
i
(
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
4
l
a
c
o
L
a
e
r
a
/
s
e
Y
(
)
o
N
3
2
f
o
t
s
i
l
e
h
t
m
o
r
f
m
e
t
I
e
l
u
d
e
h
c
s
n
i
s
e
i
t
i
v
i
t
c
a
t
c
A
e
h
t
o
t
I
I
V
.
t
c
e
j
o
r
P
e
h
t
f
o
e
m
a
N
1
.
l
S
.
o
N
206
a
k
a
t
a
n
r
a
K
a
o
G
a
o
G
a
k
a
t
a
n
r
a
K
a
o
G
a
o
G
a
h
s
d
O
i
a
h
s
d
O
i
Y
Y
Y
Y
Y
Y
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
s
l
l
i
k
s
n
o
i
t
a
c
o
v
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
e
r
a
c
h
t
l
a
e
h
d
n
a
e
r
a
c
h
t
l
a
e
h
n
o
i
t
a
t
i
n
a
s
e
f
a
s
e
b
a
l
l
i
a
v
a
g
n
k
a
m
i
)
i
(
l
y
p
p
u
S
r
e
t
a
w
g
n
k
n
i
r
D
i
r
e
t
a
w
g
n
k
n
i
r
d
i
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
i
n
g
a
p
m
a
c
h
t
l
a
e
h
d
e
s
i
l
i
a
c
e
p
S
6
1
7
1
i
g
n
c
n
a
h
n
e
t
n
e
m
y
o
p
m
e
l
)
i
i
(
s
h
t
u
o
y
f
o
g
n
i
l
l
i
k
S
8
1
,
t
n
e
m
e
g
a
n
a
m
r
e
t
s
a
s
d
i
)
i
i
x
(
,
I
N
A
F
-
f
e
i
l
e
R
r
e
t
s
a
s
D
i
1
2
s
t
c
e
o
r
p
j
t
n
e
m
p
o
e
v
e
d
l
l
a
r
u
r
)
x
(
j
s
t
c
e
o
r
P
e
r
u
t
c
u
r
t
s
a
r
f
n
I
l
i
a
c
o
S
0
2
f
e
i
l
i
e
r
g
n
d
u
c
n
l
i
e
s
n
o
p
s
e
r
9
1
-
D
V
O
C
I
i
n
o
i
t
a
r
t
s
n
m
d
A
R
S
C
i
i
n
m
d
a
e
m
m
a
r
g
o
r
p
R
S
C
9
1
C
l
a
t
o
T
-
b
u
S
e
r
O
n
o
r
I
a
d
u
g
u
s
r
a
h
J
-
m
u
i
i
n
m
u
A
l
,
a
o
G
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
s
t
i
n
u
n
o
i
t
a
t
i
n
a
S
5
1
'
s
n
e
m
o
W
r
o
f
;
s
s
e
n
e
r
a
w
A
n
o
i
t
a
c
u
d
E
e
t
u
t
i
t
s
n
I
i
n
a
d
n
I
e
t
a
r
o
p
r
o
C
f
o
l
a
t
t
i
M
h
s
a
h
b
u
S
i
s
e
t
a
c
o
s
s
A
&
s
r
i
a
ff
A
8
8
.
5
8
9
,
8
1
0
,
2
4
D
l
a
t
o
T
-
b
u
S
a
d
u
g
u
s
r
a
h
J
-
m
u
i
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
i
n
m
u
A
l
2
4
6
1
0
0
0
0
R
S
C
j
a
y
a
h
a
s
a
n
a
J
o
N
0
5
6
0
0
0
0
0
R
S
C
n
a
h
t
u
r
a
n
u
P
y
r
a
t
n
u
o
V
l
i
n
o
i
t
a
s
n
a
g
r
O
o
N
A
N
s
e
Y
A
N
A
N
A
N
A
N
s
e
Y
A
N
A
N
s
e
Y
o
N
.
0
0
0
0
0
0
3
2
,
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
m
a
r
g
o
r
P
t
c
i
r
t
s
D
i
l
a
n
o
i
t
a
r
i
p
s
A
3
2
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
)
g
o
y
a
A
I
I
T
N
(
.
0
0
0
0
0
8
2
2
,
.
0
0
0
0
0
3
7
7
6
2
,
,
g
n
i
r
e
w
o
p
m
e
,
y
t
i
l
a
u
q
e
n
o
i
t
a
c
u
d
e
g
n
i
t
o
m
o
r
p
)
i
i
(
r
e
d
n
e
g
g
n
i
t
o
m
o
r
p
)
i
i
i
(
e
r
a
c
h
t
l
a
e
h
n
e
m
o
w
t
n
e
m
e
c
n
a
h
n
e
d
o
o
h
i
l
e
v
i
l
)
i
i
(
t
n
e
m
p
o
e
v
e
d
l
l
a
r
u
r
)
x
(
s
t
c
e
o
r
p
j
s
t
c
e
o
r
p
j
i
d
n
a
h
a
a
K
l
i
d
n
a
h
a
a
K
l
y
t
i
l
i
i
b
a
n
a
t
s
u
s
a
h
s
d
O
i
s
e
Y
l
a
t
n
e
m
n
o
r
i
v
n
e
g
n
i
r
u
s
n
e
)
v
i
(
y
t
i
l
i
i
b
a
n
a
t
s
u
S
4
2
a
h
s
d
O
i
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
9
1
-
D
V
O
C
I
5
2
.
0
0
0
0
0
9
7
5
1
,
,
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
e
r
a
c
h
t
l
a
e
h
g
n
i
t
o
m
o
r
p
)
i
(
l
e
c
n
a
u
b
m
A
6
2
t
n
e
m
e
g
a
n
a
m
r
e
t
s
a
s
D
i
)
i
i
x
(
d
n
a
e
r
a
c
h
t
l
a
e
h
n
o
i
t
a
t
i
n
a
s
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
e
v
n
i
t
n
e
v
e
r
p
g
n
d
u
c
n
i
l
i
.
0
0
0
0
0
4
8
5
,
.
0
0
0
0
0
0
0
8
2
,
,
i
d
n
a
h
a
a
K
l
i
d
n
a
h
a
a
K
l
a
h
s
d
O
i
s
e
Y
t
n
e
m
p
o
e
v
e
d
l
l
a
r
u
r
)
x
(
e
r
u
t
c
u
r
t
s
a
r
f
n
I
y
t
i
n
u
m
m
o
C
7
2
a
h
s
d
O
i
s
e
Y
s
t
c
e
o
r
p
j
i
n
m
d
A
R
S
C
i
n
m
d
A
&
m
a
r
g
o
r
P
8
2
e
r
a
c
h
t
l
a
e
h
0
0
.
0
0
0
,
4
9
1
,
2
3
8
8
.
2
7
6
,
2
4
7
,
1
3
1
E
l
a
t
o
T
-
b
u
S
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
)
E
+
D
+
C
+
B
+
A
(
l
a
t
o
T
207
.
3
0
7
5
8
3
1
7
2
,
,
a
d
u
g
u
s
r
a
h
J
a
h
s
d
O
i
s
e
Y
i
n
o
i
t
a
r
t
s
n
m
d
A
R
S
C
i
.
c
t
e
l
,
s
e
v
a
r
T
,
t
i
d
u
A
,
y
d
u
t
S
R
S
C
2
2
t
c
e
E
)
n
i
(
j
o
r
p
t
c
i
r
t
s
i
D
e
t
a
t
S
4
l
a
c
o
L
a
e
r
a
/
s
e
Y
(
)
o
N
3
2
f
o
t
s
i
l
e
h
t
m
o
r
f
m
e
t
I
e
l
u
d
e
h
c
s
n
i
s
e
i
t
i
v
i
t
c
a
t
c
A
e
h
t
o
t
I
I
V
.
t
c
e
j
o
r
P
e
h
t
f
o
e
m
a
N
1
.
l
S
.
o
N
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
l
d
e
t
e
p
m
o
C
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
-
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
.
0
0
0
9
9
7
1
8
7
1
,
,
.
0
0
0
0
0
4
4
9
6
,
,
.
0
0
0
0
0
7
4
5
6
,
,
.
0
0
9
9
0
8
6
7
4
1
,
,
.
0
0
0
0
0
0
0
8
8
,
,
,
.
0
0
0
0
0
9
9
2
0
2
,
.
0
0
5
3
6
4
2
2
2
2
,
,
.
0
0
0
0
0
7
5
3
8
,
,
.
0
0
0
0
0
1
8
0
9
1
,
,
.
0
0
0
0
0
1
8
7
5
,
,
,
.
0
0
0
0
0
0
0
3
3
1
,
,
.
0
0
0
0
0
9
0
7
0
2
,
.
0
0
0
0
0
3
3
8
3
4
,
,
.
0
0
0
0
0
9
3
5
7
1
,
,
,
.
0
0
6
6
6
9
9
8
3
3
,
.
0
0
0
0
0
7
3
6
0
2
,
,
.
0
0
0
0
0
3
5
4
6
,
,
,
.
0
0
0
0
0
0
8
1
6
1
,
.
0
0
1
6
5
5
1
8
2
1
,
,
.
0
0
0
0
0
5
2
1
2
,
,
.
0
0
0
0
0
3
6
4
5
6
,
,
.
0
0
0
0
0
9
7
1
3
,
,
.
0
0
0
0
0
3
4
4
7
,
,
.
0
0
0
0
0
0
6
8
1
,
,
,
.
0
0
0
0
0
5
2
1
6
1
,
,
.
0
0
0
0
0
6
6
0
2
1
,
.
0
0
0
0
0
3
4
4
7
,
,
.
0
0
0
0
9
5
8
2
9
,
,
.
0
0
6
5
6
2
8
8
6
4
,
,
.
0
0
9
9
0
8
7
3
0
3
,
,
.
,
0
0
4
4
5
4
3
5
1
0
1
,
.
0
0
0
0
0
5
3
7
4
,
,
.
0
0
0
0
0
5
3
3
6
,
,
-
.
0
0
0
0
0
0
0
5
,
.
0
0
0
0
0
0
2
6
9
,
,
,
.
0
0
0
0
0
9
5
6
0
1
,
.
0
0
0
0
0
8
9
6
0
1
,
,
,
.
0
0
0
0
0
8
9
2
0
1
,
.
0
0
0
0
0
2
6
6
1
,
,
.
0
0
0
0
0
0
0
2
7
,
,
.
0
0
0
0
0
8
6
5
1
1
,
,
,
.
0
0
0
0
0
0
0
4
0
1
,
.
0
0
0
0
0
4
5
1
7
,
,
.
0
0
0
0
0
0
0
2
7
,
,
-
.
0
0
0
0
0
0
6
5
2
,
,
.
0
0
0
0
0
2
7
5
2
,
,
.
0
0
9
1
9
0
9
9
5
,
,
.
0
0
0
6
2
3
5
6
2
7
,
,
.
0
0
0
0
0
3
8
6
9
,
,
,
.
0
0
0
0
0
0
0
8
8
1
,
.
0
0
7
9
7
2
3
0
7
2
,
,
.
0
0
0
0
0
0
4
3
2
,
,
,
.
0
0
0
0
0
4
1
0
0
1
,
.
0
0
8
2
6
2
4
4
2
4
,
,
-
.
0
0
0
0
0
0
8
7
1
,
,
.
0
0
0
8
1
4
6
4
1
1
,
,
.
0
0
0
0
0
3
2
6
4
,
,
.
0
0
0
0
0
0
0
6
3
,
,
.
0
0
0
0
0
0
5
2
0
1
,
,
-
.
0
0
0
0
0
0
5
9
4
,
,
0
0
.
9
4
3
,
7
7
0
,
7
8
5
0
0
.
0
0
0
,
1
4
5
,
6
2
1
0
0
.
5
8
5
,
7
3
9
,
4
3
2
.
0
0
7
6
3
5
1
9
6
1
,
,
.
0
0
7
6
3
5
1
9
7
,
,
,
.
0
0
0
0
0
5
9
8
3
2
,
.
0
0
3
6
2
4
2
5
0
8
,
,
.
0
0
3
6
2
4
2
1
6
3
,
,
,
.
0
0
3
6
2
9
6
0
7
7
,
s
r
Y
0
1
s
r
Y
4
1
s
r
Y
3
s
r
Y
2
s
r
Y
4
s
r
Y
3
s
r
Y
4
s
r
Y
3
s
r
Y
5
s
r
Y
2
s
r
Y
7
s
r
Y
8
s
r
Y
4
s
r
Y
1
1
s
r
Y
5
s
r
Y
2
s
r
Y
2
s
r
Y
5
s
r
Y
3
s
r
Y
5
s
r
Y
4
s
r
Y
3
3
1
0
2
7
0
0
2
9
1
0
2
9
1
0
2
7
1
0
2
9
1
0
2
7
1
0
2
8
1
0
2
6
1
0
2
9
1
0
2
5
1
0
2
4
1
0
2
6
1
0
2
0
1
0
2
6
1
0
2
8
1
0
2
9
1
0
2
6
1
0
2
8
1
0
2
4
1
0
2
7
1
0
2
7
1
0
2
s
u
o
n
i
t
n
o
C
s
r
Y
0
1
9
1
0
2
9
1
0
2
-
n
o
i
t
a
d
a
r
g
p
u
e
r
u
t
c
u
r
t
s
a
r
f
n
i
l
&
s
m
o
o
r
s
s
a
C
t
r
a
m
S
g
n
h
s
i
i
l
b
a
t
s
E
l
t
n
e
m
p
o
e
v
e
d
y
t
i
c
n
e
e
r
G
d
n
a
t
r
a
m
S
r
e
m
r
a
B
i
)
g
n
n
r
a
e
L
-
E
(
a
h
s
k
a
K
-
E
t
c
e
o
r
P
j
J
G
&
J
R
y
r
d
n
a
b
s
u
H
l
i
a
m
n
A
d
n
a
t
n
e
m
p
o
e
v
e
D
y
r
i
a
D
l
l
s
d
e
fi
n
e
e
r
G
j
f
o
M
&
O
-
t
c
e
o
r
P
r
a
h
g
d
n
a
N
j
t
c
e
o
r
p
i
d
a
w
n
a
g
n
A
2
-
e
s
a
h
P
t
c
e
o
r
P
j
i
t
a
n
n
U
r
e
m
r
a
B
l
s
t
n
a
P
O
R
2
3
d
O
l
l
s
t
n
a
P
O
R
2
9
d
O
l
f
o
M
&
O
f
o
M
&
O
s
e
m
e
h
c
s
t
v
o
G
o
t
s
e
i
t
i
n
u
m
m
o
c
k
n
i
l
l
o
t
k
s
e
d
p
e
H
y
t
i
n
u
m
m
o
C
f
o
t
r
o
p
p
u
S
-
)
m
a
n
a
y
S
'
(
e
r
t
n
e
C
h
t
l
a
e
H
y
r
a
m
i
r
P
o
t
t
r
o
p
p
u
S
s
ff
a
t
s
l
i
a
c
d
e
m
r
e
m
r
a
B
n
e
e
r
G
r
e
m
r
a
B
n
a
e
C
-
n
o
i
t
a
t
i
n
a
S
l
l
a
t
i
p
s
o
H
r
e
m
r
a
B
,
l
a
t
i
p
s
o
H
t
c
i
r
t
s
D
-
r
o
t
c
o
D
t
s
i
i
l
i
a
c
e
p
S
J
G
&
J
R
-
n
a
V
h
t
l
a
e
H
e
l
i
b
o
M
J
G
&
J
R
-
n
a
V
h
t
l
a
e
H
e
l
i
b
o
M
J
R
-
n
a
V
h
t
l
a
e
H
e
l
i
b
o
M
r
e
m
r
a
B
C
E
C
n
i
s
m
a
r
g
o
r
P
g
n
n
a
r
T
i
i
l
l
i
k
S
,
T
I
,
l
a
c
i
r
t
c
e
E
l
,
s
k
r
o
W
p
m
a
v
e
R
l
i
i
v
C
-
E
O
C
C
t
a
n
o
i
t
a
d
a
r
g
p
u
-
a
r
f
n
I
E
O
C
C
r
o
f
e
c
n
a
r
u
s
n
I
,
y
t
i
c
i
r
t
c
e
e
l
,
y
t
i
r
u
c
e
S
,
G
&
F
,
V
T
C
C
r
e
m
r
a
B
E
O
C
C
n
i
s
m
a
r
g
o
r
P
g
n
n
a
r
T
i
i
l
l
i
k
S
)
e
f
i
L
A
e
v
a
S
k
s
a
M
A
r
a
e
W
#
(
-
e
m
e
h
t
:
n
o
h
t
a
r
a
M
f
l
a
H
y
t
i
C
k
n
P
n
r
i
a
C
i
l
s
e
t
e
h
t
A
a
r
a
P
o
t
t
r
o
p
p
u
S
l
s
o
o
h
c
S
h
s
r
a
d
A
n
i
l
l
s
t
n
a
p
r
a
o
S
f
o
M
&
O
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
1
0
2
s
a
G
&
l
i
O
i
d
u
k
u
h
t
o
o
h
T
i
a
m
u
s
a
P
i
h
b
a
r
u
S
a
r
i
m
a
T
A
N
A
N
r
e
p
p
o
C
1
2
2
2
A
l
a
t
o
T
s
a
G
&
l
i
O
f
o
s
u
t
a
t
S
-
t
c
e
j
o
r
p
e
h
t
/
d
e
t
e
l
p
m
o
C
g
n
i
o
g
n
O
e
v
i
t
a
l
u
m
u
C
t
a
t
n
e
p
s
t
n
u
o
m
a
g
n
i
t
r
o
p
e
r
f
o
d
n
e
e
h
t
l
a
i
c
n
a
n
i
F
)
s
h
k
a
l
n
i
(
r
a
e
Y
l
n
o
t
n
e
p
s
t
n
u
o
m
A
e
h
t
n
i
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
r
a
e
Y
a
i
c
n
a
n
i
F
g
n
i
t
r
o
p
e
r
t
n
u
o
m
a
l
a
t
o
T
e
h
t
r
o
f
d
e
t
a
c
o
l
l
a
)
E
n
i
(
t
c
e
j
o
r
p
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
r
a
e
Y
l
a
i
c
n
a
n
i
F
e
h
t
h
c
i
h
w
n
i
s
a
w
t
c
e
j
o
r
p
d
e
c
n
e
m
m
o
c
t
c
e
j
o
r
P
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
D
I
9
8
7
6
5
4
3
2
1
.
r
S
o
N
I
I
:
)
S
(
R
A
E
Y
L
A
C
N
A
N
I
F
G
N
D
E
C
E
R
P
E
H
T
F
O
S
T
C
E
J
O
R
P
G
N
O
G
N
O
R
O
F
R
A
E
Y
L
A
C
N
A
N
I
F
E
H
T
N
I
I
I
T
N
E
P
S
T
N
U
O
M
A
R
S
C
F
O
S
L
I
A
T
E
D
)
B
(
I
I
I
)
B
(
9
E
L
B
A
T
-
S
E
T
V
T
C
A
R
S
C
N
O
T
R
O
P
E
R
208
< BACK TO CONTENTS
9
8
7
6
5
4
3
2
f
o
s
u
t
a
t
S
-
t
c
e
j
o
r
p
e
h
t
/
d
e
t
e
l
p
m
o
C
g
n
i
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
l
d
e
t
e
p
m
o
C
i
g
n
o
g
n
O
i
g
n
o
g
n
O
l
d
e
t
e
p
m
o
C
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
i
g
n
o
g
n
O
e
v
i
t
a
l
u
m
u
C
t
a
t
n
e
p
s
t
n
u
o
m
a
g
n
i
t
r
o
p
e
r
f
o
d
n
e
e
h
t
l
a
i
c
n
a
n
i
F
)
s
h
k
a
l
n
i
(
r
a
e
Y
l
n
o
t
n
e
p
s
t
n
u
o
m
A
e
h
t
n
i
t
c
e
j
o
r
p
e
h
t
)
E
n
i
(
r
a
e
Y
a
i
c
n
a
n
i
F
g
n
i
t
r
o
p
e
r
t
n
u
o
m
a
l
a
t
o
T
e
h
t
r
o
f
d
e
t
a
c
o
l
l
a
)
E
n
i
(
t
c
e
j
o
r
p
.
0
0
5
1
2
5
4
2
4
4
,
,
.
0
0
5
1
2
5
9
9
,
,
.
0
0
0
0
0
0
0
0
4
5
,
.
0
0
6
4
8
2
6
9
5
,
,
.
0
0
6
4
8
7
4
9
1
,
,
,
.
0
0
0
0
4
6
1
7
6
1
,
.
0
0
0
0
3
2
1
7
6
,
,
.
0
0
0
0
3
2
9
2
3
,
,
,
.
0
0
2
5
7
2
0
6
0
4
,
.
0
0
3
0
7
0
9
6
4
,
,
.
0
0
3
0
7
0
4
3
3
,
,
.
0
0
3
0
7
0
9
6
4
,
,
0
0
.
4
9
6
,
0
5
0
,
9
5
1
0
0
.
4
9
6
,
5
1
6
,
3
5
0
0
.
8
1
1
,
4
7
9
,
6
1
2
.
0
0
0
0
0
0
0
5
9
1
,
,
.
0
0
7
4
9
5
5
8
3
,
,
,
.
0
0
0
0
0
0
0
9
2
3
,
0
0
.
0
0
0
,
0
0
5
,
9
1
0
0
.
7
4
9
,
5
5
8
,
3
0
0
.
0
0
0
,
0
0
9
,
2
3
.
3
8
7
6
1
6
5
5
0
6
,
,
.
5
3
2
2
6
3
8
5
4
,
,
,
.
0
0
0
0
0
1
3
9
9
6
,
.
8
9
8
8
3
4
4
1
4
1
,
,
.
0
0
0
3
2
8
6
8
,
.
0
0
0
0
0
0
2
1
9
,
,
.
0
7
5
9
3
6
0
0
2
,
,
.
0
0
9
4
5
8
6
5
,
.
0
0
0
0
0
0
3
1
4
,
,
.
2
9
0
8
4
9
7
1
2
,
,
.
2
9
6
9
0
1
4
,
.
0
7
5
5
0
4
1
5
0
3
,
,
.
7
7
0
7
1
5
4
2
,
.
0
0
0
0
0
0
0
9
2
,
,
.
,
0
0
0
0
0
0
0
5
4
4
,
.
2
9
0
9
8
6
6
2
,
-
.
0
0
0
0
0
0
0
1
2
,
,
.
0
9
0
4
7
1
0
3
1
5
,
,
.
5
3
7
7
6
8
9
3
3
,
,
,
.
0
0
0
0
0
4
3
3
7
6
,
.
6
9
4
1
8
7
9
8
0
2
,
,
.
0
2
4
8
9
2
5
6
4
6
,
,
-
.
0
0
0
0
8
3
9
4
2
,
,
,
.
0
0
0
0
0
7
5
8
8
1
,
,
.
0
0
0
0
0
0
0
3
8
1
,
.
5
6
2
4
3
4
1
5
4
,
,
.
5
4
5
5
1
5
6
7
1
,
,
,
.
0
0
0
0
0
0
0
8
1
1
,
.
5
3
4
7
9
0
2
3
5
2
,
,
.
2
7
9
4
9
7
7
5
1
,
,
,
.
0
0
0
0
0
2
0
3
7
3
,
.
0
0
7
9
3
3
8
7
4
,
,
.
0
0
0
6
9
0
9
,
.
0
0
0
0
0
0
4
5
9
,
,
.
5
5
3
4
3
9
3
5
3
3
,
,
.
2
9
3
0
4
5
0
1
7
2
,
,
,
.
0
0
0
0
0
2
2
1
7
2
,
,
.
1
6
2
9
2
2
1
7
9
9
2
,
,
.
,
3
9
4
2
7
9
9
1
2
1
,
,
.
,
0
0
0
0
0
5
9
3
0
2
3
,
,
7
2
.
0
7
2
,
0
9
3
,
4
1
6
1
4
.
0
4
3
,
8
3
9
,
4
5
0
0
.
0
0
0
,
1
3
3
,
3
4
6
.
,
0
0
0
0
0
1
4
7
1
1
1
,
.
0
0
0
0
0
2
4
6
2
3
,
,
.
,
0
0
0
0
0
7
8
5
8
1
1
,
.
0
0
0
0
0
3
5
6
9
1
,
,
.
0
0
0
0
0
3
6
0
6
2
,
,
.
0
0
0
0
0
8
6
5
5
1
,
,
.
5
8
9
0
5
6
5
1
3
,
,
,
.
0
0
0
0
0
4
1
5
3
2
,
.
4
7
8
9
9
3
8
5
,
.
0
0
4
9
3
3
6
4
2
,
,
,
.
0
0
0
0
0
9
4
6
3
2
,
,
.
0
0
0
0
0
5
1
7
5
2
,
t
c
e
j
o
r
P
n
o
i
t
a
r
u
d
s
r
Y
2
s
u
o
n
i
t
n
o
C
s
u
o
n
i
t
n
o
C
s
r
Y
2
r
a
e
Y
l
a
i
c
n
a
n
i
F
e
h
t
h
c
i
h
w
n
i
s
a
w
t
c
e
j
o
r
p
d
e
c
n
e
m
m
o
c
9
1
0
2
9
1
0
2
9
1
0
2
9
1
0
2
s
u
o
n
i
t
n
o
C
6
0
0
2
-
C
M
C
1
1
0
2
U
H
M
)
6
2
0
2
-
9
0
0
2
0
2
0
2
-
9
0
0
2
1
2
0
2
-
3
1
0
2
2
2
0
2
-
9
1
0
2
2
2
0
2
-
8
0
0
2
2
2
0
2
-
0
1
0
2
2
2
0
2
-
5
1
0
2
2
2
0
2
-
3
1
0
2
2
2
0
2
-
1
1
0
2
2
2
0
2
-
7
1
0
2
2
2
0
2
-
0
1
0
2
2
2
0
2
-
0
1
0
2
3
2
0
2
-
9
1
0
2
1
2
0
2
-
0
1
0
2
5
2
0
2
-
9
1
0
2
5
2
0
2
-
9
1
0
2
5
2
0
2
-
9
1
0
2
5
2
0
2
-
9
1
0
2
9
0
0
2
9
0
0
2
3
1
0
2
9
1
0
2
8
0
0
2
0
1
0
2
5
1
0
2
3
1
0
2
1
1
0
2
7
1
0
2
0
1
0
2
0
1
0
2
9
1
0
2
0
1
0
2
0
1
0
2
5
0
0
2
5
1
0
2
5
1
0
2
r
e
e
r
a
C
/
s
e
s
s
a
C
l
l
a
i
r
o
t
u
T
/
r
e
h
c
a
e
T
l
a
n
o
i
t
i
d
d
A
/
t
c
e
o
r
P
Y
V
V
V
j
l
s
e
s
s
a
c
n
o
i
t
a
r
a
p
e
r
p
m
a
x
e
e
v
i
t
i
t
e
p
m
o
C
/
g
n
i
l
e
s
n
u
o
C
m
a
r
g
o
r
P
y
c
a
r
e
t
i
L
r
e
t
u
p
m
o
C
l
i
m
a
r
g
o
r
P
p
h
s
r
a
o
h
c
S
V
A
D
a
t
n
a
d
e
V
l
i
o
o
h
c
s
m
u
d
e
m
a
y
d
O
5
n
i
i
i
e
r
t
n
e
C
e
c
n
e
c
S
-
i
n
M
a
t
n
a
d
e
V
i
,
g
n
i
l
i
d
u
B
y
t
i
c
a
p
a
C
,
i
p
o
-
o
C
m
x
a
a
h
b
u
S
l
:
t
n
e
m
r
e
w
o
p
m
E
n
e
m
o
W
s
e
s
i
r
p
r
e
t
n
E
o
r
c
M
i
t
i
n
U
h
t
l
a
e
H
e
l
i
b
o
M
e
v
i
t
a
i
t
i
n
i
r
e
h
t
o
&
i
h
h
d
i
r
i
m
a
S
a
k
v
e
e
J
t
c
e
o
r
P
j
:
y
t
i
v
i
t
c
A
m
r
a
F
y
t
i
l
i
c
a
f
n
o
i
t
a
t
i
n
a
s
-
r
e
t
a
w
r
e
h
t
o
&
y
p
p
u
S
r
e
t
a
W
l
I
S
D
A
/
V
H
I
f
o
n
o
i
t
n
e
v
e
r
P
:
i
t
u
r
g
a
J
t
c
e
o
r
P
j
e
v
i
r
d
s
s
e
n
i
l
l
n
a
e
c
e
g
a
l
l
i
V
s
t
n
e
v
e
l
a
r
u
t
l
u
c
&
s
t
r
o
p
S
g
n
i
t
r
o
p
p
u
S
n
o
i
t
a
e
r
c
t
e
s
s
A
y
t
i
n
u
m
m
o
C
f
e
i
l
e
R
r
e
t
s
a
s
D
i
i
e
c
n
a
n
e
t
n
a
M
&
n
o
i
t
a
t
n
a
P
l
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
A
N
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
3
0
4
1
4
D
l
a
t
o
T
a
d
u
g
u
s
r
a
h
J
-
m
u
i
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
i
n
m
u
A
l
e
r
u
t
c
u
r
t
s
a
r
f
n
I
n
o
i
t
a
c
u
d
E
h
t
l
a
e
H
d
o
o
h
i
l
e
v
L
i
A
N
A
N
A
N
A
N
2
4
3
4
4
4
5
4
U
H
M
(
t
i
n
u
h
t
l
a
e
h
e
l
i
b
o
M
&
C
M
C
)
(
e
r
t
n
e
C
l
i
a
c
d
e
M
y
t
i
n
u
m
m
o
C
A
N
7
2
C
l
a
t
o
T
e
r
O
n
o
r
I
B
l
a
t
o
T
r
e
p
p
o
C
e
r
O
n
o
r
I
a
d
u
g
u
s
r
a
h
J
-
m
u
i
i
n
m
u
A
l
e
r
t
n
e
C
e
c
r
u
o
s
e
R
n
a
m
o
W
l
a
t
i
p
s
o
H
&
l
o
o
h
c
S
h
t
l
a
e
H
i
p
h
s
r
a
o
h
c
S
l
A
N
A
N
A
N
A
N
t
c
e
j
o
r
P
e
h
t
f
o
e
m
a
N
t
c
e
j
o
r
P
D
I
1
.
r
S
o
N
3
2
4
2
5
2
6
2
0
0
.
0
0
0
,
5
2
0
,
3
7
1
9
5
.
2
0
9
,
5
4
8
,
8
3
0
0
.
0
0
0
,
5
6
4
,
1
9
1
7
2
.
3
1
3
,
3
4
0
,
3
5
5
,
1
0
0
.
4
8
8
,
6
9
7
,
7
7
2
0
0
.
3
0
7
,
7
0
6
,
9
1
3
,
1
E
l
a
t
o
T
h
r
a
g
i
j
n
a
L
-
m
u
i
i
n
m
u
A
l
)
E
+
D
+
C
+
B
+
A
(
l
a
t
o
T
209
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Annexure C
Disclosure in Board’s report as per provisions of Section 197 of the Companies Act, 2013 read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2019
Ratio
205.37
-
97.24
76.01
1.18
1.52
12.21
7.45
12.56
12.83
1.85
14.78
Increment
Percentage
NIL
NIL
30%
NIL
NIL
Disclosure
Name of the Director
Navin Agarwal (1)
Srinivasan Venkatakrishnan(2)
Sunil Duggal(3)
GR Arun Kumar(4)
Anil Agarwal
Aman Mehta(5)
K Venkataramanan(6)
Lalita D Gupte(7)
Mahendra Kumar Sharma
UK Sinha
Padmini Somani(8)
Priya Agarwal
Category
Executive Vice-Chairman
Whole-Time Director & Chief
Executive Officer
Whole-Time Director & Chief
Executive Officer
Whole-Time Director & Chief
Financial Officer
Non-Executive Chairman
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Independent Director
Non Executive Director
Name
Category
Executive Vice-Chairman
Whole-Time Director &
Chief Executive Officer
Whole-Time Director &
Chief Executive Officer
Whole-Time Director &
Chief Financial Officer
Company Secretary &
Compliance Officer
Navin Agarwal
Srinivasan Venkatakrishnan
Sunil Duggal
GR Arun Kumar
Prerna Halwasiya
The median remuneration of the
employees in the financial year
was increased by 11.2 %
There were 8,550 employees
of Vedanta Limited as on
March 31, 2021
NIL increment; as the increment
FY 20 was put on hold due to Global
Pandemic
Requirement
Sr.
No.
1 Ratio of the remuneration of
each director to the median
remuneration of the employees of
the company for the financial year
Ratio of the Fee for attending board/
committee Meetings & Comission
of each director to the median
remuneration of the employees of
the company for the financial year
2 Percentage increase in remuneration
of each director, Chief Financial
Officer, Chief Executive Officer,
Company Secretary or Manager,
if any, in the financial year
3 Percentage increase in the median
remuneration of employees in the
financial year
4 Number of permanent employees on
the rolls of company
5 Average percentile increase already
made in the salaries of employees other
than the managerial personnel in the last
financial year and its comparison with
the percentile increase in the managerial
remuneration and justification thereof
and point out if there are any exceptional
circumstances for increase in the
managerial remuneration
6 Affirmation that the remuneration is as per
the remuneration policy of the Company
Yes
Notes:
1.
2.
3.
4.
For Mr. Navin Agarwal, the ratio inclusive of remuneration received from Vedanta Resources Limited, UK, the Holding Company, is 216.69
For Mr. Srinivasan Venkatakrishnan, the ratio of remuneration received from Vedanta Resources Limited, UK, the Holding Company, is 25.40.
Mr. Venkatarakrishnan ceased to be Whole-Time Director and Chief Executive Officer of the Company effective close of business hours on
April 5, 2020.
Mr. Sunil Duggal was appointed as Interim CEO of Vedanta Limited effective April 6, 2020 and subsequently CEO effective August 1, 2020
and Whole‐Time Director effective April 25, 2021. During the period when he was operating as Interim CEO, his 50% of remuneration was
allocated to VEDL which is reported above.
Mr. GR Arun Kumar ceased to be Whole-Time Director and Chief Financial Officer of the Company effective close of business hours on April
24, 2021.
Mr. Aman Mehta ceased to be Independent Director of the Company effective close of business hours on May 16, 2020.
5.
6. Mr. K Venkataramanan ceased to be Independent Director of the Company effective close of business hours on March 31, 2021.
7. Ms. Lalita Gupte ceased to be Independent Director of the Company effective close of business hours on November 6, 2020.
8. Ms. Padmini Somani was appointed as an Additional Director designated as Independent Director of the Company effective February 5, 2021.
< BACK TO CONTENTS
Annexure D
SECRETARIAL AUDIT REPORT
for the financial year ended March 31, 2021
To,
The Members
Vedanta Limited
1st Floor, C wing,
Unit 103, Corporate Avenue Atul Projects,
Chakala, Andheri (East), Mumbai – 400 093,
Maharashtra
We have conducted the Secretarial Audit of the
compliance of applicable statutory provisions and the
adherence to good corporate governance practices by
Vedanta Limited (hereinafter called the “Company”).
Secretarial Audit was conducted in a manner that
provided us a reasonable basis for evaluating the
corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on our verification of the Company’s books,
papers, minute books, forms and returns filed and
other records maintained by the Company and also the
information provided by the Company, its officers, agents
and authorised representatives during the conduct of
secretarial audit, we hereby report that in our opinion,
the Company has, during the audit period covering the
financial year ended on March 31, 2021 complied with the
statutory provisions listed hereunder and also that the
Company has proper Board-processes and compliance-
mechanism in place to the extent, in the manner and
subject to the reporting made hereinafter:
We have examined the books, papers, minute books,
forms and returns filed and other records maintained by
the Company for the Financial Year ended on March 31,
2021 according to the provisions of:
(i)
(ii)
(iii)
The Companies Act, 2013 (the “Act”) and the rules
made thereunder;
The Securities Contracts (Regulation) Act, 1956
(”SCRA’) and the rules made thereunder;
The Depositories Act, 1996 and the Regulations
and Bye-laws framed thereunder to the extent of
Regulation 76 of Securities and Exchange Board of
India (Depositories and Participants) Regulations,
2018;
(iv)
Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent
of Foreign Direct Investment, Overseas Direct
Investment and External Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India
Act, 1992 (‘SEBI Act”):-
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
Takeovers) Regulations, 2011;
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations,
2015;
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018;
The Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations,
2014;
The Securities and Exchange Board of
India (Issue and Listing of Debt Securities)
Regulations, 2008;
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer
Agents) Regulations, 1993 regarding the
Companies Act and dealing with client to the
extent of securities issued;
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009;
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998; Not
Applicable during the period
(vi)
The Management has identified and confirmed the
following laws as being specifically applicable to the
Company:
(a)
(b)
(c)
The Mines and Minerals (Development and
Regulation) Act, 2015 and the rules and
regulations made thereunder.
Indian Boilers Act, 1923 and rules and
regulations made thereunder.
Manufacture, Storage, and Import of Hazardous
Chemical Rule, 1989.
We have also examined compliance with the applicable
clauses/Regulations of the following:
(i)
(ii)
Secretarial Standards issued by The Institute
of Company Secretaries of India and notified by
Ministry of Corporate of Affairs.
Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements)
Regulations, 2015(“Listing Regulations”).
210
211
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
During the period under review, the Company has
substantially complied with the provisions of the
Act, Rules, Regulations, Guidelines, Standards, etc.
mentioned above except written as under:
(i)
(ii)
Pursuant to regulation 33 of Listing Regulations
read with SEBI circular no SEBI/HO/CFD/CMD1/
CIR/P/2020/140, dated July 29, 2020, Financial
Results for the Quarter ended June 30, 2020 were
required to be approved by September 15, 2020
however the same have been approved by the board
of directors at its meeting held on October 03,
2020 and the Company has received notice(s) from
BSE Limited & National Stock Exchange of India
Limited (Stock Exchanges) for delay in approval and
submission of financial results for the quarter ended
June 30, 2020 and a fine of ` 1,06,200/- (inclusive of
GST @ 18 %) has been imposed by each of the stock
exchange(s). As confirmed by the management of
the Company the same has been paid within the
prescribed timeline.
The Company had delayed submission of intimation
under regulation 29(2) of Listing Regulations with
each of the Stock Exchange(s) with regard to the
meeting of the Board of Directors held on October
3, 2020 to consider the financial results of the
Company for Quarter ended June 30, 2020 and
a fine of ` 11,800/- (inclusive of GST @ 18%) has
been imposed by each of the stock exchange(s). As
confirmed by the management of the Company the
same has been paid within the prescribed timeline.
(iii)
The Company had submitted the outcome of the
board meeting held on October 03, 2020 for the
approval of financial results for the Quarter ended
June 30, 2020 beyond the prescribed timeline under
Para A of Part A of schedule III of Listing Regulations.
We further report that:
The Board of Directors of the Company is duly
constituted with proper balance of Executive Directors,
Non-Executive Directors, and Independent Directors.
The changes in the composition of the Board of Directors
that took place during the period under review were
carried out in compliance with the provisions of the Act.
The Company had made an application in form MR-2
with the Ministry of Corporate Affairs, to obtain the
approval of Central Government for the appointment
of Mr. Srinivasan Venkatakrishnan, a foreign national, as
Whole-Time Director (“WTD”) designated as CEO of the
Company with effect from March 01, 2019 in terms of
Section 196, 197 read with Schedule V of the Companies
Act, 2013 and the same was rejected by the Ministry vide
its e-mail dated June 9, 2020, for delay in filing of the
form. In this regard, the Company filed an application
for condonation of delay in filing of form MR-2 including
justification for delay with Ministry, in Form CG-1 and
post approval of the form CG-1 by the Ministry vide its
order dated August 25, 2020, the Company again filed
the application to reconsider form MR-2 and the same
was pending for approval before the Ministry as on the
closure of financial year ended March 31, 2021. Further
Mr. S Venkatakrishnan has resigned from the position of
WTD designated as CEO w.e.f. April 05, 2020.
Adequate notice is given to all directors to schedule
the Board/Committee Meetings. Agenda and detailed
notes on agenda were sent atleast seven days in advance
except in case where meetings were convened at
shorter notice. A system exists for seeking and obtaining
further information and clarifications on the agenda items
before the meeting and for meaningful participation at
the meeting.
All decisions at Board Meetings and Committee Meetings
are carried out unanimously as recorded in the minutes of
the meetings of the Board of Directors or Committee of
the Board, as the case may be.
We further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations and
guidelines.
We further report that during the audit period, following
major events have happened which are deemed to have
major bearing on the Company’s affairs in pursuance of
the above referred laws, rules, regulations, guidelines,
standards, etc.
(i)
(ii)
(iii)
The Company has issued and allotted
Non-Convertible Debentures of ` 500 crores during
the period under review.
The Company has redeemed Non-Convertible
Debentures of ` 2,600 crores during the period
under review.
The Company had received a letter dated May 12,
2020 from one of the members of the promoter
and promoter group of the Company (“Promoter
Group”) namely, Vedanta Resources Limited
(“Vedanta”) wherein Vedanta has expressed its
intention to, either individually or along with one or
212
< BACK TO CONTENTS
more subsidiaries, acquire all fully paid-up equity
shares of the Company (“Equity Shares”) that are
held by the public shareholders of the Company
and consequently voluntarily delist the Equity
Shares from the Stock Exchanges where the Equity
Shares are listed, in accordance with the Delisting
Regulations. The Company took all the requisite
approvals required under the said regulations. But
delisting offer deemed to have failed in terms of
Regulation 19(1) of the Delisting Regulations.
(iv)
Vedanta Resources Limited (VRL), along with
persons acting in concert with it (PACs), had
announced a voluntary open offer in accordance with
Securities and Exchange Board of India (Substantial
Notes:
Acquisition of Shares and Takeovers) Regulations,
2011. Subsequently, 374,231,161 equity shares of
the Company have been validly tendered in this
Voluntary Open Offer.
For Chandrasekaran Associates
Company Secretaries
Dr. S Chandrasekaran
Senior Partner
Membership No. A1644
Certificate of Practice No. 715
UDIN: F001644C000253159
Date: May 7, 2021
Place: New Delhi
i.
ii.
This report is to be read with our letter of even date which is annexed as Annexure-A and forms an integral part of
this report.
Due to restricted movement amid COVID-19 pandemic, we conducted the secretarial audit by examining
the Secretarial Records including Minutes, Documents, Registers and other records etc., and some of them
received by way of electronic mode from the Company and could not be verified from the original records. The
management has confirmed that the records submitted to us are the true and correct. This Report is limited to the
Statutory Compliances on laws/ regulations/ guidelines listed in our report of which, the due date has been ended/
expired on or before March 31, 2021 pertaining to Financial Year 2020-21.
ANNEXURE-A TO SECRETARIAL AUDIT REPORT
To,
The Members
Vedanta Limited
1st Floor, C wing,
Unit 103, Corporate Avenue Atul Projects,
Chakala, Andheri (East), Mumbai – 400 093,
Maharashtra
1.
2.
3.
4.
Maintenance of secretarial record is the
responsibility of the Management of the Company.
Our responsibility is to express an opinion on these
secretarial records based on our audit.
We have followed the audit practices and processes
as were appropriate to obtain reasonable assurance
about the correctness of the contents of the
secretarial records. The verification was done on
the random test basis to ensure that correct facts
are reflected in secretarial records. We believe that
the processes and practices, we followed provide a
reasonable basis for our opinion.
We have not verified the correctness and
appropriateness of financial records and Books of
Accounts of the Company.
Whenever required, we have obtained the
Management representation about the compliance
of laws, rules and regulations and happening of
events etc.
5.
6.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is
the responsibility of Management. Our examination
was limited to the verification of procedures on
random test basis.
The Secretarial Audit report is neither an assurance
as to the future viability of the Company nor of the
efficacy or effectiveness with which the Management
has conducted the affairs of the Company.
For Chandrasekaran Associates
Company Secretaries
Dr. S Chandrasekaran
Senior Partner
Membership No. A1644
Certificate of Practice No. 715
UDIN: F001644C000253159
213
Date: May 7, 2021
Place: New Delhi
DIRECTORS REPORT CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Report on
Corporate Governance
Vedanta believes in working towards ‘Desh Ki Zarooraton Ke Liye’ – ascertaining that
everything above the Earth comes from below the Earth. We, being a responsible globally
diversified natural resources company, trust in unearthing and harnessing the infinite potential
of natural resources in the most sustainable way to power the nation’s progress. Vedanta,
providing vital commodities needed for everyday life, endeavours to bring these blessings of
the earth to you.
COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE
Our Corporate Governance reflects the values, vision, mission and seven pillars of the Company. To perpetually ensure
utmost trust and confidence of our stakeholders in us, transparency, accountability, excellence, veracity, safety and
professionalism form an integral part of our functioning and practices.
The success of the Company is in consonance with the value generation for its shareholders. Vedanta, hence, believes
that by ensuring highest standards of Corporate Governance and following global best practices, it is continuously
evolving its performance goals and optimising sustainable yield for its shareholders.
SEVEN PILLARS OF VEDANTA
People
Sustainability,
Health,
Safety &
Environment
Values,
Ethics &
Governance
Digitalisation,
Innovation,
Technology
& Excellence
Quality
Growth
Giving back to
Community/
Society
GUIDING PRINCIPLES
Transparency
and
Accountability
Policies &
Regulatory
Framework
Management/
Board and
Committees
Values &
Ethics
Monitoring
& Internal
Control
Executing
Strategy &
Managing Risk
< BACK TO CONTENTS
Compliance with Global Guidelines and Best Practices
Your Company has been at the forefront in complying
with global best practices in Corporate Governance.
During the year, in an attempt to recognise and honor the
exemplary commitment of your Company in the area of
Corporate Governance and Sustainable Development,
Vedanta Limited was bestowed with the prestigious
Corporate Governance Award conferred by the Indian
Chamber of Commerce (ICC).
1. Corporate Governance Award conferred by
the Indian Chamber of Commerce.
2. SILVER Award for Integrated Report 2019-
20 under the LACP Spotlight Awards.
The Award duly acknowledged and rewarded the positive
steps undertaken by your Company in the field of
Corporate Governance in order to measure and manage
its economic, environmental & social impacts and
performance, and to integrate sustainability into its core
business models while nurturing innovation. This, in turn,
marks as a significant milestone in our growth journey
to highlight our leading example and inspire others to
adopt similar sustainable policies and practices whilst
communicating on their performance with transparency
and integrity.
Vedanta Limited has also received the SILVER Award for
its Integrated Report 2019-20 under the LACP Spotlight
Award Category as the only Indian Integrated Report
(Revenue $10bn+) to win in this category.
LACP (League of American Communications
Professionals) is highly regarded for corporate reporting
and communications. With the 2020 Spotlight Awards
Global Communications Competition drawing one
of the largest submissions ever representing a broad
range of industries and organisational sizes globally, in
the category criteria, LACP judging panel accorded the
Integrated Report of Vedanta for 2019-20 with a score of
97/100 across aspects of content, creativity, messaging
and presentation. Your Company has been continuing to
apply and win this award in different categories since the
past five consecutive years.
Vedanta has maintained the highest standards of
corporate governance all through its operations. Our
sustainable development journey continues to create
value for our stakeholders. We have invested our time
and resources in introspecting our actions; we have
achieved our targets and formulated ambitious new
ones; we have adopted global best practices and taken
innovative leaps; we have aligned our standards with
industry benchmarks and charted some of our own.
We have done all this and will continue to do it with
a singular agenda: ensuring long-term growth of all
stakeholders.
In addition to complying with the statutory guidelines,
the Company has voluntarily adopted and evolved
various practices of governance conforming to utmost
ethical and responsible standards of business. These
practices reflect the way business is conducted and
value is generated.
INTEGRATED REPORTING
Since its inception, Vedanta Limited has taken conscious
efforts to operate in a manner responsible to all
stakeholders. Every decision and action at the Company
is taken after considering the impact they may have on
the Company’s relevant stakeholder groups. This is a true
reflection of the organisation’s integrated thinking, which
takes into account all the resources and relationships that
affect Company’s ability to create sustained value. These
resources and relationships, termed ‘Capitals’, are stocks
of value enabling Company’s operations.
SEBI vide circular no. SEBI/HO/CFD/CMD/CIR/P/2017/10
dated February 06, 2017 had recommended voluntary
adoption of ‘Integrated Reporting’ (IR) from 2017 - 2018
by the top 500 listed companies in India.
While operating, your Company actively considers its
external environment, the opportunities and challenges,
the organisational strategy to respond to these
externalities and the outputs and outcomes it produces
basis its business activities. Starting FY 2017-18, the
Company has proactively commenced reporting its
annual performance and strategy using an integrated
report, using the content elements and the guiding
principles outlined in the International Integrated
Reporting framework. The organisation has continued
its Integrated Reporting journey and its FY 2020-21
performance and forward-looking strategy have been
elucidated in the current Integrated Annual Report.
The report takes into account the following six capitals
while reporting:
214
215
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports FINANCIAL CAPITAL
The Company is focused on optimising capital
allocation and maintaining a strong balance sheet
while generating strong FCFs. It also reviews all
investments, taking into account the Group’s
financial resources with a view to maximising
returns to shareholders.
INTELLECTUAL CAPITAL
As a relatively young Company, the Company is
keen to embrace technological developments. The
Company is setting up a centre of technological
excellence in South Africa, enabling them to
nurture and implement innovative ideas across the
business, which lead to operational improvements.
NATURAL CAPITAL
India and Africa have favourable geology and
mineral potential and these regions provide the
Company with world-class mining assets, which
are structurally at low cost and have extensive
R&R. Additionally, operating the Company’s
mines requires a range of resources, including
water and energy, which the Company aims to
use prudently and sustainably.
HUMAN CAPITAL
The Company has employees from across the
world and it is committed to provide them with a
safe and healthy work environment. In addition,
by creating a culture that nurtures innovation,
creativity and diversity, it enables them to grow
personally and professionally while also helping
to meet our business goals.
SOCIAL & RELATIONSHIP CAPITAL
The Company aims to forge strong partnerships
by engaging with its key stakeholders,
including shareholders and lenders, suppliers
and contractors, employees, governments,
communities and the society in general. These
relationships help maintain and strengthen
Vedanta’s licence to operate.
MANUFACTURED CAPITAL
The Company invests in assets including
best-in-class equipment and machinery to ensure
it operates as efficiently and safely as possible,
both at its current operations and in its expansion
projects. This also supports its strong and
sustainable cash flow generation.
SUSTAINABILITY REPORTING JOURNEY
AT VEDANTA
been building our sustainable development agenda on
transparent and credible reporting practices.
More than twelve years ago, Vedanta embarked upon a
journey to transform how it does business. We committed
to not only become the lowest cost metal producer in the
world, but to do so in the most sustainable way possible.
To achieve this, we established policies and standards in
line with global best practices. We then began the journey
of meticulously embedding them across our business
operations. Ever since, we have embraced sustainability
as a comprehensive, integrated business practice that
involves collaboration, innovation, and a course of action.
Your Company has been publishing the Sustainable
Development Report for more than a decade now.
The Report is prepared in accordance with the Global
Reporting Initiative (GRI) Standards: Core option and
is also mapped to the United Nations Global Compact
(UNGC) and aligns to Sustainable Development Goals
(SDGs). It should be considered as our Communication
of Progress (COP) which reports our approach and
disclosure towards triple bottom line principles - people,
planet, and profit.
We see sustainable development as a core requirement
to strategically improve the value of our business,
both by managing risk and improving our operating
standards. Our approach to sustainability mirrors our
prevailing business ethos of achieving excellence through
continuous improvement in processes and outcomes
while also benchmarking ourselves against global peers.
On the sustainability roadmap, we keep achieving our
goals and formulating new ones with continuous progress
towards lasting growth.
In line with the keystone of our sustainability journey to
ensure long-term growth for all stakeholders, we have
Vedanta applies its sustainability performance reporting
criteria based on GRI Standards including the Mining
& Metals and Oil & Gas Sector Disclosures; National
Voluntary Guidelines on Social, Environmental &
Economic Responsibilities of Business (NVG) framed by
the Ministry of Corporate Affairs, Government of India;
United Nations Global Compact (UNGC) principles;
and standards set by International Council on Mining &
Metals (ICMM), International Finance Corporation (IFC),
Organisation for Economic Co-operation & Development
(OECD) and Sustainable Development Goal frameworks
for the Company.
< BACK TO CONTENTS
For further insights into the sustainability practices
adopted by your Company, the Sustainability Report can
be accessed at www.vedantalimited.com.
TAX TRANSPARENCY REPORTING
We have a long-standing commitment to transparency
and are proud of the value we generate and how this
contributes to building trust with the communities in
which we operate.
The Tax Governance and Strategy of the Company
includes the following:
Substance, Transparency and Arm’s Length Principle;
Tax Risk Management;
Dynamic Tax Environment;
Relationship with Tax Authorities and Dispute Resolution.
The Company has been publishing Tax Transparency
Report (TTR) for providing an overview of the tax
strategy, governance and tax contributions made by
the Company and for ensuring greater transparency
and disclosure of profits made, and taxes paid. We
consider this as an important part of our social license to
operate. TTR is a voluntary initiative to ensure proactive
transparency in tax reporting and greater accountability
towards stakeholders which helps in getting detailed
information about the overall economic contribution
of Vedanta to the government of countries where
it operates.
The report for the FY 2021 is available on the website at
www.vedantalimited.com.
GOVERNANCE FRAMEWORK
Your Company has always been a front runner in adopting
best governance practices and endeavours to embed and
sustain a culture of highest ethical standards, personal
and professional integrity and upholding its core values
of Trust, Entrepreneurship, Innovation, Excellence,
Integrity, Respect and Care.
The governance framework of the Company is
underpinned through its resounding core values with
the strength of leading vision, strategic mission, and the
primary objective of delivering sustainable growth.
With a strong governance philosophy, we have a
multi-tier governance structure with defined roles
and responsibilities of every constituent of the
governance system.
g e m e nt
a
n
a
Risk M
Governa
n
c
e
n
ning
ce
n
, Pla
a
m
r
o
f
r
e
P
y
g
e
t
a
r
&
t
S
G
S
E
S
t
a
k
e
h
o
l
d
e
r
s
Transparency
Integrity &
Corporate
Governance
Framwork
Reporting
Compliance &
BOARD OF DIRECTORS
The Board of Directors of the Company provide
entrepreneurial leadership and play a crucial role
in providing strategic supervision, overseeing the
management performance, and long-term success of the
Company while ensuring sustainable shareholder value.
Driven by its guiding principles of Corporate Governance,
the Board’s actions endeavour to work in best interest of
the Company.
The Directors hold a fiduciary position, exercise
independent judgement and play a vital role in the
oversight of the Company’s affairs. Our Board represents
a tapestry of complementary skills, attributes,
perspectives and includes individuals with financial
experience and a diverse background.
In line with the recommendation of SEBI and our
relentless endeavour to adhere to the global best
practices, the Company is chaired by Mr. Anil Agarwal,
Non-Executive Chairman effective April 1, 2020.
With a view to effectively discharge its obligations, the
Board has delegated certain responsibilities to its various
committees. Each of the committees have a clearly
defined charter and is entrusted with discharging its
duties, roles and responsibilities. The details about these
committees have been discussed in detail in subsequent
sections in this report.
216
217
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Role & Responsibilities
Chairman
Leading the Board and ensure that it discharges its responsibilities effectively;
Develops succession plan for Board appointments for approval by the Board;
Identifies strategic priorities and new business opportunities to enhance shareholder value;
Promotes the highest standards of integrity, probity and governance;
Chairs the board meeting and facilitates active engagement of all Directors;
Oversees the Director’s induction, performance and ongoing development; and
Engages with Company’s stakeholders to ensure that an appropriate balance is maintained between
g e m e nt
various interests.
a
n
a
Risk M
Vice-Chairman
Supports the Non-Executive Chairman in executing the overall vision and strategy of the Group;
Enhances and sustains the Group’s overall HSE, people, digital and technology, ethics and compliance
practices at global standards;
Oversees stakeholder engagement in India and globally;
Ensures effective execution of growth projects to deliver value; and
Provides mentoring to some of the key corporate functions like the people function, management
assurance and investor relations including key leadership development.
Chief Executive Officer
Leading the management team;
Developing & executing the corporate strategy in conjunction with the Board;
Implementing the decisions of the Board and its Committees;
Developing Group policies and ensuring effective implementation; and
Enhancing shareholder value and implementing the organisation’s vision, mission, and overall direction.
Senior Management
Developing and executing business strategy; and
Management of the day-to-day decisions and ensuring that decisions are in parity with the long-term
objectives and policies of the Company.
< BACK TO CONTENTS
Separate role of Chairman & CEO
There is clear demarcation of the roles and responsibilities of the Chairman of the Board and the Chief Executive
Officer (CEO) as the positions are held by separate individuals. Further, as on March 31, 2021, the Company also had a
separately designated Chief Financial Officer and Company Secretary & Compliance Officer.
The reporting structure, as shown below, between the Board, Board Committees and Management Committees forms
the backbone of the Group’s Corporate Governance framework.
SHAREHOLDERS
Board of
Directors
CEO
Management
& Executive
Committee
Audit & Risk
Management
Committee
Stakeholders
Relationship
Committee
Corporate Social
Responsibility
Committee
Nomination &
Remuneration
Committee
Sustainability
Committee
Share & Debenture
Transfer
Committee
Committee of
Directors
Changes in the position of Directors / Key Managerial Personnel (KMPs) of the Company:
Director
Designation
Anil Agarwal
Navin Agarwal
S Venkatakrishnan
Aman Mehta
Priya Agarwal
Tarun Jain
Lalita D. Gupte
Padmini Somani
K Venkataramanan
Sunil Duggal
Non-Executive Chairman
Executive Vice-Chairman
Whole-Time Director & CEO
Independent Director
Non-Executive Director
Non-Executive Director
Independent Director
Independent Director
Independent Director
Interim CEO
CEO
*Ceased to be a director consequent to completion of tenure.
Changes post FY 2020-21 till date of report:
Change (Appointment/
Re-designation/
Resignation)
Appointment
Re-designation
Resignation
Cessation
Re-appointment
Cessation
Resignation
Appointment
Cessation
Appointment
Re-designation
Date of appointment/
Cessation/
Re-designation
April 1, 2020
April 1, 2020
April 6, 2020
May 17, 2020*
May 17, 2020
April 1, 2020*
November 7, 2020
February 5, 2021
April 1, 2021*
April 6, 2020
August 1, 2020
Tenure Till
-
July 31, 2023
NA
NA
May 16, 2023
NA
NA
February 4, 2023
-
July 31, 2023
Director
Designation
Dindayal Jalan
GR Arun Kumar
Sunil Duggal
Independent Director
Whole-Time Director & CFO
Whole-Time Director & CEO
Change (Appointment/
Re-designation/
Resignation)
Appointment
Resignation
Appointment
Date of appointment/
Cessation/
Re-designation
April 1, 2021
April 25, 2021
April 25, 2021
Tenure Till
March 31, 2023
-
July 31, 2023
The Board of Directors places on record their deep appreciation for the contributions made by the Outgoing Directors
during their association with the Company.
218
219
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Size, Composition and Board Refreshments
The Board comprises of an optimum mix of Executive,
Non-Executive and Independent Directors from diverse
backgrounds possessing considerable experience and
expertise to promote shareholder interests and govern
the Company effectively by providing effective oversight
and insightful strategic guidance.
Committee, Nomination & Remuneration Committee,
Stakeholders Relationship Committee, Corporate Social
Responsibility Committee and Sustainability Committee
are chaired by an independent director. The composition
is in conformity with the provisions of SEBI Listing
Regulations and Companies Act and in line with global
best practices.
As on March 31, 2021, the Board comprised of 8 members,
consisting of a Non-Executive Chairman, an Executive
Vice Chairman, an Executive Director, a Non-Executive
Woman Director and four Non-Executive Independent
Directors including one Woman Director. Each of the
Board Committees including Audit & Risk Management
Diversity and inclusion
Your organisation recognises and embraces board
diversity as an indispensable component in upholding a
competitive advantage. The Board comprises of two (2)
woman directors including one Independent Director.
BOARD COMPOSITION
(%)
BOARD DIVERSITY
(%)
Non-Executive Chairman
Executive Director
Non-Executive Director
Independent Director
12.5
25
12.5
50
25Women
75Men
TENURE
(NO. OF DIRECTORS)
AVERAGE TENURE
(IN YEARS)
0–2 Years
2–4 Years
4–6 Years
6–8 Years
1
1
3
3
Board
Non-Executive
Directors
Executive
Directors
Independent
Directors
3.22
2.42
2.25
5.96
< BACK TO CONTENTS
The table below encapsulates the key qualifications, skills and attributes which are taken into consideration while
nominating to serve on the Board. While all the Board members possess the identified skill, their domain of core
expertise is given in the table Board of Directors.
BUSINESS LEADERSHIP
Sustainable success in business at a senior
executive level
FINANCIAL EXPERTISE
Proficiency in financial accounting and reporting,
corporate finance and internal controls,
corporate funding, and associated risks
NATURAL RESOURCES
Senior executive experience in a large, global
mining & oil & gas organisations involved in
the discovery, acquisition, development and
marketing of natural resources
CAPITAL PROJECTS
Experience working in an industry with projects
involving large-scale long-cycle capital outlays
ESG
Familiarity with issues associated with workplace
health and safety, asset integrity, environment
and social responsibility, and communities
CORPORATE GOVERNANCE
Experience with a major organisation that
demonstrates rigorous governance standards
MERGERS & ACQUISITION
Experience in corporate transactions and actions
and joint ventures
GOVERNMENT & INTERNATIONAL
RELATIONS
Interaction with government and regulators and
involvement in public policy decisions
GLOBAL EXPERIENCE
Experience in multiple global locations, exposed
to a range of political, cultural, regulatory and
business environments
TECHNOLOGY / DIGITAL
A strong understanding of technology and
innovation, and the development and
implementation of initiatives to enhance production
220
221
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
< BACK TO CONTENTS
BOARD OF DIRECTORS
Age
Date of Appointment
Tenure till March 31, 2021
Shareholding
68 years
April 1, 2020
1 year
Nil
Anil Agarwal
Non-Executive Chairman
Board Membership - Other Indian Listed Companies
Sterlite Technologies Limited
Non-Executive Chairman
MK Sharma
Independent Director
No. of Directorships in Public Limited Companies
2
Membership/Chairmanship in Committee
Member
: Nil
Chairperson : Nil
Area of Expertise
Business
Leadership
Financial
expertise
Natural
Resources
Capital
projects
Global
Experience
Age
Initial Date of Appointment
Tenure Till
Tenure as on March 31, 2021
Shareholding
74 years
June 1, 2019
May 3, 2022
1.8 years
Nil
Board Membership - Other Indian Listed Companies
Wipro Limited
Asian Paints Limited
United Spirtis Limited
Ambuja Cements Limited
Independent Director
Independent Director
Chairperson & Independent Director
Non-Executive
Non-Independent Director
No. of Directorships in Public Limited Companies
7
Membership/Chairmanship in Committee
Member
: 8
Chairperson : 5
ESG
Corporate
Governance
Mergers &
Acquisition
Government &
International
relations
Technology /
Digital
Area of Expertise
Age
Initial Date of Appointment
Date of Appointment
Tenure as on March 31, 2021
Navin Agarwal
Executive Vice Chairman
Tenure Till
Shareholding
60 years
August 17, 2013
August 1, 2018
7.6 years
July 31, 2023
Nil
Board Membership - Other Indian Listed Companies
Hindustan Zinc Limited
Director
No. of Directorships in Public Limited Companies
2
Membership/Chairmanship in Committee
Member
: Nil
Chairperson : Nil
Area of Expertise
Business
Leadership
Financial
expertise
ESG
Corporate
Governance
Mergers &
Acquisition
Age
Initial Date of Appointment
Tenure Till
Tenure as on March 31, 2021
Padmini Somani
Independent Director
Shareholding
45 years
February 5, 2021
February 4, 2023
0.2 years
Nil
Board Membership - Other Indian Listed Companies
Everest Industries Limited
Non-Executive
Non- Independent Director
No. of Directorships in Public Limited Companies
2
Membership/Chairmanship in Committee
Member
Chairperson : Nil
: 1
Area of Expertise
Business
Leadership
Financial
expertise
Natural
Resources
Capital
projects
Global
Experience
Business
Leadership
Financial
expertise
Natural
Resources
Capital
projects
Global
Experience
Profile available at www.vedantalimited.com.
Profile available at www.vedantalimited.com.
ESG
Corporate
Governance
Mergers &
Acquisition
Government &
International
relations
Technology /
Digital
ESG
Corporate
Governance
Mergers &
Acquisition
Government &
International
relations
Technology /
Digital
222
223
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports UK Sinha
Independent Director
Age
Initial Date of Appointment
Tenure Till
Tenure as on March 31, 2021
Shareholding
69 years
March 13, 2018
August 10, 2021
3 years
Nil
Board Membership - Other Indian Listed Companies
Havells India Limited
Independent Director
Housing Development Finance Corporation Limited
Independent Director
Max Healthcare Institute Limited
Independent Director
No. of Directorships in Public Limited Companies
4
Membership/Chairmanship in Committee
Member
: 5
Chairperson : 3
Area of Expertise
Business
Leadership
Financial
expertise
ESG
Corporate
Governance
Government &
International
relations
Age
Initial Date of Appointment
Tenure Till
Shareholding
Sunil Duggal
Whole-Time Director & CEO
Board Membership - Other Indian Listed Companies
No. of Directorships in Public Limited Companies
Membership/Chairmanship in Committee
58 years
April 25, 2021
July 31, 2023
Nil
None
1
Member
: Nil
Chairperson : Nil
Area of Expertise
Business
Leadership
Financial
expertise
Natural
Resources
Capital
projects
Global
Experience
< BACK TO CONTENTS
Age
Initial Date of Appointment
Tenure till
Shareholding
Dindayal Jalan
Independent Director
Board Membership - Other Indian Listed Companies
Gallant Ispat Limited
Gallant Metal Limited
64 years
April 1, 2021
March 31, 2023
Nil
Independent Director
Independent Director
No. of Directorships in Public Limited Companies
5
Membership/Chairmanship in Committee
Member
: 2
Chairperson : 1
Area of Expertise
Business
Leadership
Financial
expertise
Natural
Resources
Capital
projects
Global
Experience
ESG
Corporate
Governance
Mergers &
Acquisition
Government &
International
relations
Technology /
Digital
Age
Initial Date of Appointment
Date of Re-appointment
Tenure Till
Priya Agarwal
Non-Executive Director
Tenure till March 31, 2021
Shareholding
Board Membership - Other Indian Listed Companies
No. of Directorships in Public Limited Companies
Membership/Chairmanship in Committee
Area of Expertise
31 years
May 17, 2017
May 17, 2020
May 16, 2023
3.8 years
Nil
None
1
: Nil
Member
Chairperson : Nil
ESG
Corporate
Governance
Mergers &
Acquisition
Government &
International
relations
Technology /
Digital
Business
Leadership
Natural
Resources
Global
Experience
Corporate
Governance
Technology /
Digital
Profile available at www.vedantalimited.com.
Profile available at www.vedantalimited.com
224
225
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Notes
• The no. of directorships in Public Limited companies include Vedanta Limited.
• The no. of Directorships excludes Private Companies, foreign companies and companies under Section 8 of Companies Act, 2013.
• For the membership and chairpersonship in Committees, only Audit Committee and Stakeholder Relationship Committee have been
considered as per Regulation 26 of the Listing Regulations. Also, all public limited companies, whether listed or not, have been included and
all other companies including private limited companies, foreign companies, and companies under Section 8 of the Companies Act, 2013
have been excluded.
•
In the committee details provided, every chairpersonship is also considered as a membership.
• The details of directorship on board of other Indian listed companies, public limited companies and membership/chairmanship in
committee details are provided as on March 31, 2021.
• Mr. Anil Agarwal has been appointed as the Non-Executive Director designated as the Chairman of the Board w.e.f. April 1, 2020 pursuant to
which Mr. Navin Agarwal has been re-designated as the Executive Vice-Chairman of the Board effective April 1, 2020.
• Mr. S Venkatakrishnan resigned from the position of Whole-Time Director & CEO w.e.f. close of business hours on April 5, 2020.
• Mr. Aman Mehta ceased to be Independent Director of the Company w.e.f. close of business hours on May 16, 2020 consequent to completion of
his tenure.
• Ms. Priya Agarwal has been re-appointed as the Non-Executive Director of the Company w.e.f. May 17, 2020 for a term of 3 years.
• Mr. Tarun Jain ceased to be a Director of the Company effective April 1, 2020.
• Ms. Lalita D. Gupte stepped down from post of Independent Director of the Company w.e.f. close of business hours on November 6, 2020
to balance her work and other family commitments. Ms. Gupte has confirmed to the Company that there are no other material reasons for
her resignation other than those as disclosed above.
• Mr. GR Arun Kumar resigned from the position of Whole-Time Director & CFO of the Company w.e.f. close of business hours on
April 24, 2021.
• Mr. K Venkataramanan ceased to be an Independent Director of the Company w.e.f. close of business hours on March 31, 2021 upon
completion of his 2nd and final term.
• Based on the recommendation of the Nomination & Remuneration Committee, the Board appointed the following directors, subject to the
approval of the shareholders:
(i)
(ii)
Mr. Dindayal Jalan as an Additional Director designated as Non-Executive Independent Director of the Company for a 1st term of 2
years w.e.f. April 1, 2021 till March 31, 2023.
Ms. Padmini Somani as an Additional Director designated as Non-Executive Independent Director of the Company for a 1st term of 2
years w.e.f. February 5, 2021 till February 4, 2023.
(iii) Mr. Sunil Duggal, appointed as Interim Chief Executive Officer and Key Managerial Personnel of the Company effective April 06, 2020
and CEO of the Company for a fix term of 3 years w.e.f. August 01, 2020 has been appointed as Whole-Time Director & CEO and KMP of
the Company effective from April 25, 2021 till July 31, 2023.
The notice of 56th Annual General Meeting sets out the details of their appointments.
< BACK TO CONTENTS
Declaration & Confirmations
W.r.t. directorship and membership of the Directors, it is hereby confirmed that:
1. None of the Directors:
a)
b)
c)
d)
e)
f)
g)
h)
are Director in more than ten (10) public limited companies in terms of Section 165 of Companies Act, 2013;
hold directorship in more than seven (07) listed entities pursuant to Regulation 17A(1) of Listing
Regulations;
acts as an Independent Director in more than seven (07) listed entities pursuant to Regulation 17A(1)
of Listing Regulations;
are serving as an Independent Director in more than three (03) listed entities in case they are Whole-Time
Director of the Company pursuant to Regulation 17A(2) of Listing Regulations;
are members of more than ten (10) board level committees of Indian public limited companies;
are Chairperson of more than five (05) committees, across all companies in which they are directors;
are related to other Directors except Ms. Priya Agarwal, Mr. Navin Agarwal and Mr. Anil Agarwal.
Ms. Priya Agarwal is the daughter of Mr. Anil Agarwal and Mr. Anil Agarwal is the elder brother of
Mr. Navin Agarwal;
who are serving as a Non-Executive Director, have attained the age of seventy-five years except
Mr. K Venkataramanan. In terms of Reg 17(1A) of Listing Regulations, the shareholders through special
resolution passed by Postal Ballot on December 06, 2019, approved continuation of directorship
of Mr. K Venkataramanan as a Non-Executive Independent Director from the day he attained the
age of 75 years i.e. December 11, 2019 till the expiry of his first term till March 31, 2020. Further,
Mr. K Venkataramanan was also re-appointed for a 2nd and final term of one year effective from
April 01,2020 till March 31, 2021 notwithstanding that he has attained the age of 75 years.
Mr. Venkataramanan ceased to be an Independent Director of the Company w.e.f. close of business hours
on March 31, 2021 consequent upon completion of his tenure.
2.
The Company has received declarations from all the Independent Directors of the Company confirming that
they meet the criteria of independence prescribed under the Act and the Listing Regulations.
Process for Board and Senior Management
Appointments
The Board, with the support of the Nomination and
Remuneration Committee, keeps under constant review
the composition of the Board and its Committees,
succession planning, diversity, inclusion and
remuneration related matters.
It has sought to balance the composition of the Board and
its Committees and to refresh them progressively over
time. In discharging its responsibilities, the Nomination
& Remuneration Committee regularly reviews the
structure, size and composition of the Board and its
Committees, including skills, knowledge, independence
and diversity, to ensure they are aligned with the Group’s
strategy.
The Committee strongly believes that diversity and providing
an inclusive culture is a key driver of business success and the
Committee is committed to having a diverse and inclusive
leadership team which provides a range of perspectives,
insights and critical challenge needed to support good
decision-making, helping with risk management and
strategic planning at the current time of crisis.
Process for Selection and Appointment of new Directors
Nomination & Remuneration
Committee is responsible
for identification and
selection for appointment
as a Director
Identification of
Candidate to be
appointed as Director
Upon evaluation, the
Committee makes
recommendation to the
Board for approval
The Board members after
approval recommend
the appointment to
shareholders for approval
The proposal is placed
before shareholders for
approval
Recommendation
by
NRC
Board
Approval
Shareholders
Approval
The criteria for nominating a candidate for directorship has been provided for in the NRC policy of the Company which
can be accessed at www.vedantalimited.com.
226
227
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
< BACK TO CONTENTS
participate in the discussion nor vote on the matter in
question.
Independent Directors
The independent Directors of the Company are in
compliance with requirement as prescribed in Companies
Act, 2013 and SEBI Listing Regulations in addition to the
criteria as laid down in the New York Stock Exchange
(NYSE) listed company manual, the Sarbanes-Oxley Act,
and US securities laws by virtue of our listing on the NYSE
in the US.
Based on the disclosures received from all the
independent directors and in the opinion of the
Board, the independent directors fulfil the conditions
specified in the Companies Act, 2013, the Listing
Regulations, NYSE listing manual and are independent
of the Management.
Meeting of Independent Directors
During the financial year 2020-21, the independent
directors met separately without the management twice
on May 30, 2020 and March 31, 2021 which was chaired
by Mr. MK Sharma and Mr. UK Sinha respectively. In these
meetings, the independent directors discussed among
other matters, the performance of the Company and risks
faced by it, the flow of information to the Board, project
execution, strategy, governance, compliance, Board
movements, human resource matters and performance
review of the Non-Independent Directors, the Board as
whole, including the Chairman and CEO.
Additionally, the Independent Directors also met
separately with the Statutory Auditors to discuss matters
such as key accounting issues, risks, overall control
environment and to invite their overall feedback.
The Audit & Risk Management Committee and the Board
are updated by the Independent Directors about the
outcome of the meetings and actions, if any, required to
be taken by the Company.
Databank registration of the Independent Directors
Pursuant to the Ministry of Corporate Affairs notification
dated October 22, 2019, requisite confirmations have
been received from all the Independent Directors of the
Company w.r.t registration on the Independent Director’s
Databank.
Performance Evaluation
Good corporate governance is about implementing the
right systems and controls across the Group to facilitate
effective management and sound decision-making. The
Board works with the Nomination and Remuneration
Committee to lay down the evaluation criteria for
the performance of the Chairman, the Board, Board
committees, and executive/ non-executive/ independent
directors through peer evaluation, excluding the director
being evaluated.
During the year, an evaluation was carried out by an
external agency, one of the largest multinational
professional services networks, through a secured online
questionnaire platform to capture the views of each
Director. The evaluation was carefully structured and
pragmatically designed to bring about a genuine debate
on issues that were relevant; check on progress against
matters identified in the previous evaluation; and assist in
identifying any potential for improvement in the Board’s
processes, as given below:
Tailored
questionnaires
prepared by
external agency and
confrmed with the
Chairperson of NRC
Secured online
platform for
providing the
responses
Results of the
evaluation compiled
by the external
agency without
involvement of the
management
Sharing of evaluation
results
Outcome and
feedback discussed
at the NRC, Separate
Meeting of IDs and
Board Meeting and
Action Plan agreed
Board Familiarization and Induction Program
Your Company has a structured and comprehensive
orientation process in place for newly inducted directors
which is tailored to their individual needs and intends to
provide introduction to the Company’s vision, mission,
values, operations, challenges, structure and risks. As a
part of an ongoing familiarisation process, the directors
are updated about the about significant regulatory/
industry changes on regular basis through formal
reporting process.
Orientation Program upon induction of New
Directors
Other initiatives to update the Directors on a
continual basis
Roles & Responsibilities
Briefing about role, responsibilities, duties and
obligations as a member of the Board.
Plant / Site Visits
Visits to plants and business locations are
organised periodically to provide an insight into
the Company’s operations.
Interactive Sessions
Interactive sessions with senior management,
business & functional heads.
Familiarisation Pack
Familiarisation pack is uploaded on a secured
online portal which can accessed only by the
Board members. The pack includes various
documents viz. a viz. Organisational structure, the
Company’s history and milestones, Memorandum
& Articles of Association, latest Annual Report
including Form 20F, Code of Conduct, Investor
Presentations, CEO/CFO reports, Minutes of
previous meetings, Policies & Charters etc.
Active Communication Channel
An active communication channel with
executive management which allows free flow of
communication among directors.
Business & Regulatory Presentations
Presentations on regulatory and business
environment, Business Plan, risk management
framework, internal audit & controls, cyber
security, HSE, compliance reports, tax &
treasury reports, key accounting matters,
CSR, HR initiatives, Digitalisation & Technology
initiatives and Company policies and other
relevant issues.
Update on Company’s performance and
operations
Update on Company’s and its subsidiaries
performance/ operations/ updates/ major
developments affecting the business by various
reports on quarterly basis along with major stock
exchange announcements, press releases etc.
The detailed familiarisation programme can be accessed on the Company’s website at
www.vedantalimited.com/CorporateGovernance
Membership Term
The Board regularly evaluates the contribution of
members and periodically shares updates with the
shareholders about reappointments consistent with the
applicable laws.
Succession Planning
Succession Planning is critical to the success of the
Company as it ensures continuity and sustainability
of corporate performance. It involves a process that
recognises, develops and retains top leadership talent
and further helps in identifying key roles and mapping
out ways to ensure the organisation has the right people
with the right blend of skills, aptitude, expertise and
experiences, in the right place and at the right time. As
per the NRC Policy of the Company, the NRC has laid
a succession plan outlining the process for retaining,
developing, and/or appointing the Board of Directors,
KMPs and SMPs of the Company and it reviews such
plans on an annual basis and recommend revisions,
if any, to the Board.
The NRC works with the management and follows the
following process for effective succession planning:
1.
2.
Assessment of potential employees and creation of
a leadership pool;
Development of the talent pool through actions such
as involvement in strategic meetings, leadership
workshops with top management, coaching,
anchoring, job rotations, role enhancement, council
memberships and involvement in cross function
projects etc.
Directors’/ KMPs/ SMPs conflicts of interest
Your Board has in place a well-defined process w.r.t
disclosure of interest and associated matters in
accordance with the guidelines prescribed by the
Companies Act, 2013 and Listing Regulations. Each
Director/ KMP/ SMP promptly discloses actual or
potential conflicts and any changes, to the Board which
are further noted at forthcoming Board meeting. The
Board considers and authorises potential or actual
conflicts, as appropriate. Directors with a conflict neither
228
229
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports BOARD AS A
WHOLE
BOARD
COMMITTEES
INDIVIDUAL
DIRECTORS
CHAIRMAN &
VICE-CHAIRMAN
CEO
Committee Meeting &
Information;
Committee
Composition &
Operation;
Specific Committee
responsibilities;
Progress against
development areas.
Assessment of
Company as a whole, its
performance, its goals
and functions of the
Board;
Composition, structure
and quality;
Board Meetings;
Board Environment;
Relationship with Senior
Management;
Progress against
development areas.
Preparedness and
participation of the
Director for the
meetings;
Understanding of
Company’s mission,
vision, industry,
business etc.;
Quality of discussions
during meetings;
Personality and Conduct
of Director;
Quality of the value
additions made.
Demonstration of
effective Leadership;
Company
Performance;
Strategy and its
execution;
Leadership;
Team building;
Management
Succession.
Objectivity in
discussions;
Constructive
communication &
relationship with other
directors;
Contribution in
enhancing Company’s
image;
Availability and
approachability to
discuss sensitive
matters.
Results of Performance Evaluation
Individual directors
Evaluation
Chairman/Vice-Chairman
Evaluation
CEO
Evaluation
Report shared with the
Chairperson, Vice-Chairman
and respective individual
directors.
Summary of evaluation of
Executive Directors shared
with the Independent Directors
and discussed in the separate
meeting of Independent
Directors.
Summary report shared with
the Chairperson of Nomination
& Remuneration Committee
(NRC).
Evaluation results also
discussed in separate meeting
of Independent Directors.
Report shared with the
Chairman, Vice-Chairman and
Chairperson of NRC.
The evaluation results
discussed in separate meeting
of Independent Directors.
Board Self
Evaluation
Committee
Evaluation
Report shared with all directors.
Results discussed in meeting
of NRC and Board and separate
meeting of Independent
Directors.
Summary report shared with
all directors.
Results discussed in meeting
of NRC and Board and separate
meeting of Independent
Directors.
Outcome of Performance Evaluation
The evaluation concluded that the Board as a whole is functioning as a cohesive body which is well engaged with
different perspectives. All Directors continued to demonstrate a collaborative and constructive mindset, creating a
conducive environment at Board meetings for participation and challenge. The Committees are functioning well and
besides the Committee’s terms of reference as mandated by law, important issues are brought up and discussed in
the Committees. The clarity of the strategy together with the understanding of the capabilities for implementing and
monitoring it were regarded highly. The effectiveness review identified some opportunities for the Board which will be
acted upon going forward.
< BACK TO CONTENTS
Meetings of the Board & Committees
Schedule of
meetings and
agenda matters
The Board meets at regular intervals to discuss and decide on Company/business policy and
strategy in addition to the statutory and other matters. The Board and Committee meetings
are pre-scheduled and an annual calendar of the meetings is circulated to all the Directors well
in advance to facilitate planning of their schedule and to ensure meaningful participation in the
meetings. However, in case of business exigencies/urgencies resolutions are passed through
circulation or additional meetings are conducted.
The Board, the Audit & Risk Management Committee and the Nomination & Remuneration
Committee are facilitated with annual agenda plan in advance in order to enable the members to
focus on key areas of organisational performance and designing the future strategy. The annual
agenda plans are finalised with the inputs from the board members and are approved by the
Board. Additional agenda matters are taken up on requirement basis.
Circulation of
Agenda
Information
presented at
meetings
Conduct and
recording of
meeting
The agenda is finalized by the Company Secretary in discussion with the CFO, CEO
and Chairman.
All the Agenda papers are disseminated electronically on a real-time basis. The papers are
uploaded on a secured online platform specifically designed for this purpose, thereby eliminating
circulation of printed agenda papers. The online platform also enables the Board to access the
historical agendas, minutes, constitutional documents, committee charters, etc. It enables
the participants to make notes and exchange notes amongst each other under a secured
environment.
The Agenda papers other than in nature of Unpublished Price Sensative Information (UPSI)
are circulated well in advance as per statutory requirements and those in nature of UPSI are
circulated at least 24 hours in advance with the approval of the Board.
The Board business generally includes consideration of important corporate actions and events
including but not limited to:
a) quarterly and annual result announcements; b) oversight of the performance of the
business; c) development and approval of overall business strategy; d) Board succession
planning; e) review of the functioning of the Committees; f) Review of internal controls and risk
management and g) other strategic, transactional and governance matters as required under
the Companies Act, 2013, Listing Regulations and other applicable laws.
Majority of the meetings are conducted as physical meetings, however, at times it may not be
possible for each one to be physically present at all meetings. Hence, we provide the facility of
video conferencing/telepresence to the Board members and invitees at various locations across
the globe.
During the FY 2020-21, all meetings were held through video conferencing/telepresence
considering the pandemic situation.
All the meetings conducted through telepresence are recorded and stored as per statutory
requirements. The Company Secretary records minutes of the meetings of each Board and
Committees.
The respective management teams and functional leaders are invited on a rotational basis to
present the performance on key areas such as the Company’s major business segments and
their operations, subsidiary performance and other key updates from time to time.
Post Meeting
summary/
Follow Up
Post conclusion of each of the Board/Committee meeting, the Company Secretary circulates
the summary of the proceedings of all meetings along with the action points, if any.
Various decisions taken at Board/Committee meetings are promptly communicated to the
concerned departments/divisions.
Draft minutes and signed minutes are circulated to Board/Committee members within the
timelines prescribed under Secretarial Standards.
The matters arising from the previous meetings are taken up at the respective forthcoming
Board/Committee meeting.
230
231
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Board & Executive Leadership Remuneration Policy
The Remuneration Policy is significant in ensuring that
competitive and impartial rewards are linked to key
deliverables and are also in line with market practices and
shareholders’ expectations.
The NRC ensures that remuneration policies and
practices are framed and intended to attract, retain and
encourage the Executive Directors (ED) and the senior
management group, while simultaneously meeting the
delivery of the Group’s strategic and business objectives.
The NRC further ensures the interests of the Executive
Directors and the senior management group are aligned
with those of shareholders, to build a sustainable
performance environment.
Remuneration Components:
The ED remuneration has two components: fixed pay
and annual variable pay including stock incentives
(performance linked incentive). The fixed component
is based upon the industry practice and benchmarks
considering the experience, skill, knowledge and job
responsibilities. The performance linked incentive is
linked to the achievement of the Company and individual
performance goals. Such variable compensation is ‘at
risk’, and rewards performance and contributions to
both short-term and long-term financial performance of
the Company. The remuneration of the EDs is governed
by the agreements executed with them, subject to the
approval of the Board and of the shareholders in general
meetings and such other approvals as may be necessary.
The Non-Executive Independent Directors are paid
remuneration by way of commission and sitting
fees. The appointment letter detailing the terms
and conditions of appointment of Non-Executive
Independent Directors is available on the Company’s
website www.vedantalimited.com. The Board decides
the payment of commission within the limits approved
by the members subject to the limit not exceeding 1% of
the net profits of the Company. Further, it may be noted
that no stock options were issued to the Non-Executive
Independent Directors during the year.
Mr. Anil Agarwal, Non-Executive Chairman, voluntarily
chose not to receive any commission for his services
rendered to the Company.
Directors’ & Officers’ Liability Insurance
In line with the requirements of Regulation 24(10) of the
Listing Regulations, the Company has in place a Directors
and Officers Insurance policy (’D&O‘) for all its Directors.
The details of remuneration paid/ payable to the
Directors during FY 2020-21 are as follows:
< BACK TO CONTENTS
7.
8.
There was no performance bonus paid for the FY 2020. However,
a Discretionary award was paid to all the employees, who
relentlessly worked during the pandemic times and supported
the organization. The Executive Directors were also covered
under this initiative.
The ESOS 2018, Cash Plan 2018 and Vedanta Resources Limited
LTIP 2018 options/units will vest/ be exercise after three
years from date of grant i.e. on November 1, 2021, based on
achievement of performance conditions.
The ESOS 2019, Cash Plan 2019 and Vedanta Resources Limited
LTIP 2019 options/units will vest/ be exercise after three
years from date of grant i.e. on November 29, 2022, based on
achievement of performance conditions.
9.
The ESOS 2020, Cash Plan 2020 and Vedanta Resources
Limited LTIP 2020 options/units will vest/ be exercise after 31
months from date of grant i.e. on November 6, 2023, based on
achievement of performance conditions.
Mr. S Venkat exited from the organisation at the close of business
hours of April 5, 2020, he was based out of UK and was paid
remuneration in GBP during the FY 20-21 till exit date, which was
paid by Vedanta Resources Limited amounting to ` 1,04,85,281 (£
108,246).
We hereby confirm that:
The total managerial remuneration payable in FY 2020-21 does not exceed 11% of the net profits of the Company.
The total remuneration received by Whole-Time Directors and Independent Directors of the Company does not
exceed 10% and 1% of the Net Profits of the Company, respectively.
Mr. Navin Agarwal, Executive Vice-Chairman and member of Promoter Group does not receive remuneration in
excess of ` 5 crores or 2.5% of the Net Profits of the Company, whichever is higher.
None of the non-executive directors, have received remuneration exceeding 50% of the total annual remuneration
payable to all non-executive directors.
Remuneration paid or payable to Directors for the year ended March 31, 2021
BOARD COMMITTEES
Name of the Director
Relationship with
other Directors
Sitting Fees
Salary and
Perquisites(6)
Provident and
Superannuation
Funds
Commission to Non-
Executive Directors
/ Other payments
to Executive
Directors(7)
Total
Vedanta
Limited
ESOS 2018,
ESOS 2019
ESOS 2020(8)
Refer Note 1
Refer Note 1
None
Non-Executive Chairman
Anil Agarwal
Executive Directors
Navin Agarwal(2)
GR Arun Kumar
Total
Independent Non-Executive Directors
Aman Mehta(3)
K Venkataramanan
Lalita D Gupte (4)
MK Sharma
UK Sinha
Padmini Somani(5)
Total
Non-Independent Non-Executive Directors
Priya Agarwal
None
None
None
None
None
None
Refer Note 1
150,000.00
1,300,000.00
850,000.00
1,550,000.00
1,750,000.00
200,000.00
5,800,000.00
6,50,000.00
850,000.00
-
-
-
8,50,000.00
-
-
-
-
102,152,271.00
34,846,173.00
136,998,444.00
5,879,400.00
2,441,440.00
8,320,840.00
40,000,000.00
17,500,000.00
57,500,000.00
148,031,671.00
54,787,613.00
202,819,284.00
-
294,780.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
945,205.48
7,500,000.00
4,520,547.95
7,500,000.00
7,500,000.00
1,130,136.99
29,095,890.42
1,095,205.48
8,800,000.00
5,370,547.95
9,050,000.00
9,250,000.00
1,330,136.99
34,895,890.42
10,000,000.00
10,650,000.00
-
-
-
-
-
-
-
-
Total
Grand Total
6,50,000.00
7,300,000.00
-
136,998,444.00
-
8,320,840.00
10,000,000.00
96,595,890.42
10,650,000.00
249,215,174,42
-
294,780.00
Notes:
1.
2.
Ms. Priya Agarwal is the daughter of Mr. Anil Agarwal and
Mr. Anil Agarwal is the elder brother of Mr. Navin Agarwal.
Sitting fees and commission paid to Mr. Navin Agarwal from
HZL was ` 275,000 and ` 1,500,000 respectively during the
FY 2020-21.
Mr. Navin Agarwal has been awarded 435,960 units in FY’19,
513,260 units in FY’20 and 412,444 units in FY’21 under
Long-Term Incentive Plan of Vedanta Resources Limited.
3.
4.
5.
6.
Commission paid for a period from April 1, 2020 till May 16, 2020.
Commission paid for a period from April 1, 2020 till
November 06, 2020.
Commission paid for a period from February 05, 2021 till March 31, 2021.
Value of Perquisites as per rule u/s 17(2) of Income-tax Act, 1961.
Further, as the liabilities for defined benefit plan, i.e. gratuity
are provided on accrual basis for the Company as a whole, the
amounts pertaining to Key Management Personnel are not
included above.
The Board has constituted various sub-committees with primary objective of maintaining strong business
fundamentals and delivering high performance through relentless focus on significant the affairs of the Company
across all its geographies. Each committee is set up by the formal approval of the Board and is guided by its respective
charter which clearly defines their purpose, roles, and responsibilities. The Chairperson of the respective Committee
briefs the Board on the summary of the discussions held in the Committee Meetings. The minutes of all the Committee
meetings are placed before the Board for its review and noting. The Company Secretary officiates as the Secretary of
these Committees.
Composition of Committees as on March 31, 2021
All the Committees have optimum composition pursuant to the Listing Regulations. Below is the composition of the
Committees as on March 31, 2021:
Name of Director
Board
Audit & Risk
Management
Committee*(1)
Nomination &
Remuneration
Committee (1)
Stakeholder
Relationship
Committee(2)
Corporate
Social
Responsibility
Committee(3)
Committee of
Directors(4)
Sustainability
Committee(5)
Mr. Anil Agarwal
Mr. Navin Agarwal
Mr. K Venkataramanan
Mr. MK Sharma
Ms. Padmini Somani
Mr. UK Sinha
Ms. Priya Agarwal
Mr. GR Arun Kumar
Member
Chairperson
232
233
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Notes:
*Effective June 6, 2020, the Risk Management Committee has
been consolidated with the Audit Committee comprising of only
Independent Directors;
Mr. Venkataramanan ceased to be the member of the Committee
w.e.f. close of business hours on March 31, 2021.
Mr. Dindayal Jalan has been appointed as the Member of the
Committee effective April 1, 2021.
Mr. Venkataramanan and Mr. GR Arun Kumar ceased to be the
Members of the Committee w.e.f. close of business hours on
March 31, 2021 and April 24, 2021 respectively.
1.
2.
3.
4.
5.
Ms. Padmini Somani and Mr. Sunil Duggal have been appointed as
the Member of the Committee effective April 1, 2021 and April
25, 2021 respectively.
Mr. Venkataramanan ceased to be the member of the Committee
w.e.f. close of business hours on March 31, 2021.
Mr. GR Arun Kumar cease to be the Member of the Committee
w.e.f. close of business hours on April 24, 2021.
Mr. Sunil Duggal has been appointed as the Member of the
Committee effective April 25, 2021.
Mr. Venkataramanan ceased to be the Chairperson of the
Committee w.e.f. close of business hours on March 31, 2021.
Mr. Upendra Kumar Sinha has been designated as the
Chairperson of the Committee and Mr. Dindayal Jalan has been
appointed as member of the Committee effective April 1, 2021.
Board and Committee Meetings for FY 2020-21
No. of meetings held
during FY 2020-21
Date of meetings
Board
Meeting
10
Audit & Risk
Management
Committee*
Nomination &
Remuneration
Committee
Stakeholders
Relationship
Committee
Corporate Social
Responsibility
Committee
Sustainability
Committee
Committee of
Directors
09
04
01
02
02
05
June 06, 2020
November 06, 2020
January 29, 2021
March 31, 2021
November 05,
2020
June 06, 2020
January 28, 2021
August 17, 2020
February 25, 2021
May 16, 2020
August 04, 2020
September 17, 2020
November 24, 2020
February 11, 2021
April 25, 2020
May 12, 2020
May 18, 2020
June 06, 2020
October 03, 2020
October 20, 2020
November 06, 2020
January 12, 2021
January 29, 2021
March 31, 2021
May 12, 2020
May 18, 2020
May 30, 2020
June 06, 2020
September 12, 2020
October 03, 2020
November 05, 2020
January 28, 2021
March 31, 2021
*Effective June 06, 2020, the Risk Management Commiiteee has been consolidated with the Audit Committee comprising of only Independent Directors.
The board of directors approved twenty matters by passing resolution by circulation.
The Audit & Risk Management Committee approved ten matters by passing resolution by circulation;
The Nomination & Remuneration Committee approved two matters by passing resolution by circulation;
The Committee of Directors approved twenty matters by passing resolution by circulation;
The maximum interval between any two board meetings did not exceed 120 days, as prescribed in the
Companies Act, 2013.
< BACK TO CONTENTS
Attendance for Board & Committee Meetings held during FY 2020-21
Name of Director
Whether
attended
AGM on
September
30, 2020
Board
Meeting
Audit & Risk
Management
Committee
NRC
SRC
CSR
Committee
Sustainability
Committee
COD
Average %
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
Mr. Anil Agarwal
(Appointed as a Director w.e.f. Apr 01, 2020)
Yes
10/10
Mr. Navin Agarwal
Ms. Priya Agarwal
Mr. UK Sinha
Mr. MK Sharma
Ms. Padmini Somani
(Appointed as a Director w.e.f. Feb 05, 2021)
Mr. GR Arun Kumar
(Ceased to be a Director w.e.f. close of
business hours on Apr 24, 2021)
Mr. K Venkataramanan
(Ceased to be a Director w.e.f. close of
business hours on Mar 31, 2021)
Ms. Lalita D. Gupte
(Ceased to be a Director w.e.f. close of
business hours on Nov 06, 2020)
Mr. Aman Mehta
(Ceased to be a Director w.e.f. close of
business hours on May 16, 2020)
Mr. S Venkatakrishnan
(Ceased to be a Director w.e.f. close of
business hours on Apr 05 , 2020)
Yes
Yes
Yes
Yes
NA
10/10
9/10
10/10
10/10
1/1
Yes
10/10
-
-
-
9/9
9/9
-
-
4/4
-
-
4/4
4/4
-
-
-
-
-
1/1
-
-
1/1
-
-
2/2
2/2
2/2
-
-
-
-
-
2/2
-
-
-
-
5/5
-
-
-
-
100%
100%
95%
100%
100%
100%
5/5
100%
Yes
10/10*
2/2
2/2
1/1
2/2
2/2
Yes
7/7
7/7
2/2
1/1
NA
2/2
1/1
NA
-
-
-
-
-
-
-
-
-
-
-
-
100%
100%
100%
-
-
-
-
Note:
*Mr. K Venkataramanan attended the meeting held on April 25, 2020 through audio call and was not counted for the purpose of quorum.
AUDIT & RISK MANAGEMENT COMMITTEE
Composition & Attendance for FY 2020-21
100%Independent
100%Attendance
3Members
Effective June 6, 2020, as part of good governance
practice, the Audit Committee and the Risk Management
Committee have been consolidated to be called as the
Audit & Risk Management Committee, comprising of
only Independent Directors. Parallelly, the management
team led by the CEO and MAS Head is a sub-set of this
Committee and is entrusted with running the existing risk
management process. The management team presents
a detailed update on risk framework to the Audit & Risk
Management Committee twice a year.
A separate section on principal risks and uncertainties
governing the business is covered in the Management
Discussion and Analysis Report.
The primary function of the Audit & Risk Management
Committee includes monitoring and providing effective
supervision of the financial reporting; reviewing
the efficacy of the risk management systems; and
maintaining robustness of internal financial controls and
risk management frameworks including cyber security.
The Committee works to fortify the adequacy and
effectiveness of the Company’s legal, regulatory, and
ethical compliance and governance programmes while
monitoring the qualifications, expertise, resources,
and independence of both the internal and external
auditors; and assessing the auditors’ performance and
effectiveness each year.
The members of the Audit & Risk Management
Committee possess the requisite qualifications and
expertise required to contribute to the meetings of the
Committee. In carrying out its oversight responsibilities
transparently and efficiently, the Committee
majorly relies on the expertise and knowledge of the
management, the internal auditors, the Statutory
Auditor and also uses external expertise, if required.
The management is accountable for the preparation,
presentation and integrity of the Company’s financial
statements including consolidated statements,
accounting, and financial reporting principles; internal
control over financial reporting; and all procedures
are designed to ensure compliance with accounting
standards, applicable laws, and regulations as well as
for objectively reviewing and evaluating the adequacy,
effectiveness, and quality of the Company’s system of
internal controls. M/s SR Batliboi & Co. LLP, Chartered
234
235
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Accountants (FRN: 301003E / E300005), the Company’s
Statutory Auditor, is responsible for performing an
independent audit of the financial statements and
expressing an opinion on the conformity of these
financial statements.
The Audit & Risk Management Committee covers a wide
range of topics for deliberations and discussions in its
meetings including standing items that the Committee
considers as a matter of course, typically in relation to
the quarterly unaudited financial statements, accounting
policies and judgements and reporting matters, and an
array of significant issues relevant to Vedanta’s control
framework. The Chief Executive Officer, the Chief
Financial Officer, Group Assurance Head, and the external
auditor are invited to attend each meeting. The Business
and Operational Heads are invited to the meetings, as and
when required. The representatives of Statutory Auditors
are permanent invitees to the Committee meetings
and the representatives of Executives from several
departments including Accounts, Finance, Corporate
Secretarial and Internal Audit also participate in the
Committee meetings.
The Committee also meets separately with the external
auditor without members of management to seek the
auditor’s judgement about the quality and applicability
of the accounting principles, the reasonableness of
significant judgement and the adequacy of disclosures in
financial statements.
On a quarterly basis, the Audit & Risk Management
Committee reviews the confirmation of independence
made by the Auditors, and also approves the fees paid to
the Auditors by the Company, or any other company in
Vedanta Group as per the Policy for Approval of Audit/
Non-Audit Services to be rendered by the Auditors.
The Committee comprises solely of Independent
Directors whose names, details and biographies are set
out in the Board and Committees section of this Annual
Report. The Committee fulfils the requirements as
specified under the provisions of the Companies Act,
2013, SEBI Listing Regulations and NYSE Guidelines with
respect to the composition, independence, and financial
expertise of its members.
The schedule of Committee meetings held during
FY 2020-21 along with its members’ attendance records
are detailed in the earlier sections of the Corporate
Governance Report.
Performance Review of the Audit & Risk Management
Committee
As part of the Board’s annual evaluation of its
effectiveness and that of its Committees, as described
earlier in the report, the Committee assessed its own
effectiveness. The Audit & Risk Management Committee
agreed that its overall performance had been effective
during the year.
Review of Financial Results for FY 2020-21
The Committee reviewed both Standalone and
Consolidated financial statements for FY 2020-21 and
based on this review and discussions with management,
the Committee was satisfied that the financial
statements were prepared in accordance with applicable
accounting standards and fairly presented the Group’s
financial position and results for the financial year ended
March 31, 2021. The Committee therefore recommended
the financial statements for the financial year ended
March 31, 2021 for the consideration and approval of
the Board.
The Board accepted all the recommendations made by
the Audit & Risk Management Committee during FY 2021.
The utilisation of Committee’s time along with its
major responsibilities is detailed below:
Oversight of Financial
Reporting
Auditors
Internal Audit, Internal
financial controls, Risk
management
Governance
(%)
40
10
40
10
< BACK TO CONTENTS
Oversight
of Financial
reporting
Oversight of the Company’s financial reporting process and disclosure of its financial
information to ensure that the financial statements are true, fair, sufficient and credible;
Discuss and review, with the management and auditors, the annual/quarterly financial
statements before submission to the Board;
Discuss and review earnings press releases and the financial information and guidance provided
to analysts and ratings agencies;
Review of key significant issues, tax & legal reports and management’s report;
Review of management’s analysis of significant issues in financial reporting and judgements
made in preparing the financial statements;
Discuss with the Management regarding pending technical and regulatory matters that could
affect the financial statements, and updates on management’s plans to implement new
technical or regulatory guidelines;
Review of off-balance-sheet structures, if any;
Review of Draft limited review/audit reports and qualifications, if any, therein;
Discuss and Review the Form 20F & Japanese Filings.
Appointment of Statutory, internal, secretarial, cost & tax auditors, recommending their fees
and reviewing their audit reports;
Auditors
Review of the independence of the statutory auditor and the provision of audit/non-audit
services including audit/non-audit fees paid to the statutory auditor;
Independent meetings with statutory auditors.
Internal Audit
and Internal
financial controls
Review of internal audit observations and monitoring of implementation of any corrective
actions identified;
Reviewing the internal financial control framework;
Review of the performance of the internal audit function & internal audit plan;
Consideration of statutory audit findings and review of significant issues raised;
Reviewing related party transactions;
Management discussion and analysis of financial condition and results of operations.
Risk
Management
Review of the risk management framework, risk profile, significant risks, risk matrix and resulting
action plans;
Review of the significant audit risks with the statutory auditor during interim review and year-
end audit;
Oversight over the effective implementation of the risk management framework across various
businesses;
Assurance of appropriate measures in the organisation to achieve prudent balance between risk
and reward in both ongoing and new business activities;
Annual review of the risk appetite and risk management policy including cyber security
procedures adopted in the Group;
Analytic validation and recommendation of necessary changes in the risk management policies
and frameworks to the Audit & Risk Management Committee/Board, if any;
Evaluation of significant and critical risk exposures for assessing management’s action to
mitigate or manage the exposures in a timely manner.
236
237
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Governance
Reviewing minutes, summary reports of subsidiary company audit committees;
Reviewing intercorporate loans, advances, guarantees;
Reviewing ethics ( whistle-blower, sexual harassment, insider trading) and statutory
compliances;
Review of its own charter and processes;
Notices received from statutory authorities and the management’s response;
Regulatory updates;
Reviewing feedback from the Audit & Risk Management Committee’s performance evaluation.
NOMINATION AND REMUNERATION COMMITTEE
Composition & Attendance for FY 2020-21
75%Independent
100%Attendance
4Members
The Nomination & Remuneration Committee (NRC) is
accountable for overseeing the key processes through
which it can make recommendations to the Board on
the structure, size and composition of the Board, KMP
& Senior Management; and ensure that the appropriate
mix of skills, experience, diversity, and independence is
present on the Board and senior level for it to function
effectively. The NRC also leads the process for new
Board appointments, advises the Board on succession
planning arrangements and oversees the development
of management talent within the Group.
Another key objective of the Committee is to ensure
that competitive and fair awards are linked to key
deliverables and are also aligned with market practice
and shareholders’ expectations. The Committee ensures
that remuneration policies and practices are designed
to attract, retain, and motivate the Executive Directors
and the senior management group, while focusing on the
delivery of the Group’s strategic and business objectives.
The Committee is also focused on aligning the interests
of the Executive Directors and the senior management
group with those of shareholders, to build a sustainable
performance culture. When setting remuneration for
the Executive Directors, the Committee takes into
account the business performance, developments in
the natural resources sector and similar information
for high-performing Indian companies considering that
majority of the Group’s operations are based in India.
The Committee also carries out the entire process of
performance evaluation on an annual basis.
As on March 31, 2021, the NRC comprises three
Independent Directors and the Non-Executive Chairman
of the Company whose names, details and biographies
are set out in the Board and Committees section of this
Annual Report. The Committee fulfils the composition
requirement as required under the provisions of the
Companies Act, 2013 and Listing Regulations. In the
event of a conflict of interest, the Chairman of the Board
abstains from the discussions and other members of the
NRC participate and vote. Other Directors, members
of the senior management team, representatives from
Human Resource department and external advisers may
attend meetings at the invitation of the Committee,
as appropriate. In respect of each of its meetings, the
Chairman of the NRC provides an update to the Board.
The schedule of NRC meetings held in FY 2020-21 along
with its members’ attendance records are disclosed in the
earlier sections of the Corporate Governance Report.
The utilisation of the Committee’s time along with
its major responsibilities is detailed below:
Board Composition and
Nomination
Compensation
Evaluation
Succession Planning &
Governance
(%)
40
25
20
15
< BACK TO CONTENTS
Board
Composition and
Nomination
Review and recommend the structure, size and composition (including the skills, knowledge,
experience and diversity) of the Board and its Committees;
Formulate the criteria/policy for appointment of Directors, Key Managerial Personnel (KMPs) and
Senior Management (as defined by the NRC) in accordance with identified criteria;
Review and appoint shortlisted candidates as Directors, KMPs and Senior Management
(including evaluation of incumbent directors for potential re-nomination) and make
recommendations to the Board;
Evaluate the balance of skills, knowledge, experience and diversity on the Board for description
of the role and capabilities, required for an appointment;
Formulate and recommend to the Board the criteria for determining qualifications, positive
attributes and independence of a director.
Recommend to the Board a policy relating to the remuneration of directors (both executive and
non-executive directors), KMP and Senior Management Personnel;
Compensation
Ensuring that the level and composition of remuneration is reasonable and sufficient to attract,
retain and motivate directors of the quality required to run the Company successfully;
Ensuring relationship of remuneration to performance is clear and meets appropriate
performance benchmarks;
Ensuring remuneration to directors, KMP and senior management involves a balance between
fixed and incentive pay reflecting short and long-term performance objectives appropriate to
the working of the Company and its goals;
Determine remuneration based on the Company’s financial position, trends and practices on
remuneration prevailing in the industry as considered appropriate by the NRC;
Review of the Company’s Share Based Employee Benefit Scheme(s), if any, including overseeing
the administration of the Scheme(s), formulating the necessary terms and conditions for such
Scheme(s) like quantum of options/ rights to be granted, terms of vesting, grant options/
rights to eligible employees, in consultation with management; and allotment of shares/ other
securities when options/ rights are exercised etc. and recommend changes as may be necessary.
To develop, subject to approval of the Board, a process for an annual self-evaluation of the
performance of the Board, its committees and the individual directors in the governance of the
Company and to coordinate and oversee this annual self-evaluation;
To formulate a criterion for evaluation of independent Directors and the Board and carry out
evaluation of every Director’s performance and present the results to the Board;
To review the performance of all the Executive Directors, on the basis of detailed performance
parameters set for each of the executive Directors at the beginning of the year and present the
results to the Board;
Action report on suggestions made on evaluation;
To maintain regular contact with the leadership of the Company. This should include interaction
with the Company’s Leadership Institute, review of data from the employee survey and regular
review of the results of the annual leadership evaluation process.
Evaluation of
the Board, its
Committees and
individual directors
Succession
Planning &
Governance
Review succession planning for Executive and Non-Executive Directors and other Senior
Management;
Establishing policies and procedures to assess the requirements for induction of new members
to the Board;
To maintain regular interaction and collaborate with the leadership including the HR team to
review the overall HR vision and people development strategy of the Company;
To review and reassess the adequacy of the NRC’s charter as required and recommend changes
to the Board;
To develop and recommend a policy on Board diversity.
238
239
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Equal Opportunity Policy
Your Company recognises the value of diverse workforce
and has reinforced its approach to diversity and inclusion
by adopting Equal Opportunity Policy (“Policy”).
policy, we regularly engage with government agencies,
development organisations, corporates, civil societies
and community-based organisations to carry our durable
and meaningful initiatives.
The Policy aims at providing equal employment
opportunities, without any discrimination on the
grounds of age, colour, disability, marital status,
nationality, geography, ethnicity, race, religion, sex,
sexual orientation. It is our endeavour to maintain a work
environment that is free from any harassment, direct or
indirect discrimination based on the above consideration.
CORPORATE SOCIAL RESPONSIBILITY
COMMITTEE
Composition & Attendance for FY 2020-21
80%Independent
100%Attendance
5Members
The Company continues to focus on its long-term goal
believing that while targeting to produce maximum
yield for our shareholders during the year, we also lodge
our contributions in furthering our responsibilities
towards the society and environment. As a responsible
corporate citizen, we recognise that those who reside in
our operational areas are our partners in growth and we
seek to foster a mutually benefitting relationship with
all our stakeholders. It is this integration of business and
CSR which provides us the social licence to operate and
helps us to usher in a different developmental paradigm
towards sustainable change in society. As part of our CSR
In this regard, the role of CSR Committee of the Company
is to formulate and monitor the CSR Policy of the
Company along with recommending the CSR Budget.
The schedule of CSR meetings held in FY 2020-21 along
with its members’ attendance records are disclosed in the
earlier sections of the Corporate Governance Report.
As part of the Board’s annual evaluation of its
effectiveness and that of its Committees, as described
earlier in the report, the CSR Committee assessed its
own effectiveness. The members of the CSR Committee
agreed that its overall performance had been effective
during the year.
The Board accepted all the recommendations made by
the Committee in FY 2020-21.
The utilisation of the Committee’s time along with
its major responsibilities is detailed below:
CSR Policy
CSR Activities
CSR Budget
(%)
15
45
40
Formulate and recommend to the Board the CSR Policy and the activities to
be undertaken;
CSR Policy
Review the CSR Policy and associated frameworks, processes and practices.
CSR Activities
Identify the areas of CSR activities and projects and to ensure that the Company is taking the
appropriate measures to undertake and implement CSR projects successfully;
Assess the performance and impact of CSR Activities of the Company;
Evaluate CSR communication plans;
Set path for implementation and monitoring mechanism and the progress stature to ensure
achievement;
Ensure the value, ethics and principles are upheld in all its activities.
Decide and recommend to the Board the amount of expenditure to be incurred on CSR
activities;
CSR Budget
Evaluate and monitor expenditure towards CSR Activities in compliance with the Companies
Act 2013.
< BACK TO CONTENTS
STAKEHOLDERS’ RELATIONSHIP COMMITTEE
Composition & Attendance for FY 2020-21
75%Independent
100%Attendance
4Members
Vedanta understands and nurtures the value of sustaining
continuous and long-term relationships with our
stakeholders to secure a mutual understanding of the
Company’s strategy, performance, and governance in line
with the business objectives.
The Stakeholders’ Relationship Committee (SRC)
cohesively supports the Company and its Board in
maintaining strong and long-lasting relations with its
stakeholders at large. The SRC majorly ensures and
oversees the prompt resolution of the grievances of
security holders; the implementation of ways to enhance
shareholder experience; assessment of performance of
Registrar & Transfer Agent; monitoring of shareholding
movements etc.
The details of SRC composition and meetings are
given in the earlier section of this report. The SRC is
chaired by Mr. Upendra Kumar Sinha, Non-Executive
Independent Director.
As part of the Board’s annual evaluation of its
effectiveness and that of its Committees, as described
earlier in the report, the SRC assessed its own
effectiveness. The members of the SRC agreed that its
overall performance had been effective during the year.
The Board accepted all the recommendations made by
the Committee in FY 2020-21.
The utilisation of the Committee’s time along with
its major responsibilities is detailed below:
Shareholder Grievances
Enhancing Shareholder
experience
Shareholding Pattern
(%)
40
45
15
Shareholder
grievances
Review and timely resolution of the grievances of Security holders related to issue, allotment,
transfer/transmission, dematerialisation, rematerialisation etc. of shares and /or other
securities of the Company;
Review and timely redressal of all the Security holders grievances related to non- receipt of
information demanded if any, non-receipt of annual report, non-receipt of declared dividend,
issue of new/duplicate share certificates, general meeting etc.;
Review from time to time the shares and dividend that are required to be transferred to the IEPF
Authority;
Review & closure of all Investor cases.
Enhancing
shareholder
experience/services
Review of measures taken for effective exercise of voting rights by shareholders.
Review of the various measures and initiatives taken by the listed entity for reducing the
quantum of unclaimed dividends and ensuring timely receipt of dividend warrants/annual
reports/statutory notices by the shareholders of the Company;
Initiatives for registration of e-mail IDs, PAN & Bank Mandates and demat of shares;
Review reports on shareholder satisfaction surveys, if any;
Oversight of the performance and services standards of various services being rendered of/by
Registrar and Transfer Agent of the Company.
Shareholding
Pattern
Review shareholding distribution;
Review movement in shareholding pattern;
Comparative details on demat and physical holding.
An analysis of investor queries and complaints received
and responded/ addressed during the year is provided
below:
Investor Complaints
Company’s Registrar & Transfer Agent, KFin Technologies
Private Limited (RTA) entertains and resolves investor
grievances in consultation with the Compliance Officer.
All grievances can be addressed either to RTA or to the
Company directly. An update on the status of complaints
is quarterly reported to the Board and is also filed with
stock exchanges.
240
241
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Nature of complaints / letters and correspondence
The details of shareholders’ complaints during FY 2020-21:
Sr.
No.
COMPLAINTS RECEIVED THROUGH STOCK EXCHANGES, SEBI AND MINISTRY OF CORPORATE AFFAIRS
1
2
3
Non-receipt of shares
Non-receipt of dividends
Miscellaneous
36
65
112
36
65
112
Received
Replied
Letters and correspondence from shareholders
1
Total
19,061
19,274
19,061
19,274
Note: The Company received Nil complaints w.r.t. Non-Convertible Debentures.
Investor Grievance Redressal Management
Closing
Balance
0
0
0
0
0
INVESTOR
REQUESTS/
GRIEVANCES
THROUGH
SEBI Scores
Stock Exchange(s)
Registrar & Transfer
Agent (RTA)
Directly to Company
Resolved in time,
by the RTA (on behalf
of the Company) or
Company directly.
Reported to Stakeholders’
Relationship Committee
Reported to Stock
Exchange(s)
Reported to Board of
Directors
Unclaimed shares and transfer of unpaid and unclaimed
amounts to Investor Education and Protection Fund
(IEPF)
The details of Unclaimed Suspense Account and IEPF
are forming part of the Directors’ Report in this Annual
Report.
SUSTAINABILITY COMMITTEE
Composition & Attendance for FY 2020-21
66.7%Independent
100%Attendance
3Members
At Vedanta, we believe that with our thrust and focus on
sustainability approach and high-performance strategy,
we can advance both our business outcome and those of
people, host communities and environment surrounding us.
While embarking utmost emphasis on ensuring zero harm,
zero waste and zero discharge; prioritised health and
safety management; responsible environmental impact;
and support to all communities, we continue to embed
a standardised culture across all our businesses with
sustainability as one of our core values and the well-being and
security of our people, the community, and the environment
at the forefront and at the heart of our business strategy.
In our endeavour to follow the global best practices in
sustainability governance frameworks, the Board has
constituted a Sustainability Committee effective April 01,
2019 to support the Board in:
Overseeing
the Company’s
sustainability
performance
and ensuring
adequacy of
the Company’s
Sustainability
Framework
in line with
international
standards.
Advising the Board
on sustainability
policies and
management
systems, clearly
setting out the
commitments of
the Company to
manage matters
of sustainable
development
effectively.
Ensuring effective
implementation
of governance,
advocacy and
public relation
mechanisms and
practices related
to sustainability.
Outlining
initiatives required
to institutionalise
a sustainability
culture through
involvement of the
employees at all
levels.
Evaluating
emerging
sustainability
risks in terms
of intensity and
impact, in turn,
guiding the
management
on reasonable
avoidance of
adversities likely
to pose a threat to
sustained growth.
Advising the
Board to enable
it to discharge its
responsibilities,
having regard
to the law and
the expected
international
standards of
sustainability
and stakeholder
governance
The details of Committee composition and meetings are provided in the earlier section of this report.
< BACK TO CONTENTS
OTHER COMMITTEES
COMMITTEE OF DIRECTORS
In line with constant endeavour for adopting best
governance practices and ensuring smooth functioning
of the board, the board has constituted various
sub-committees and delegated certain roles and
responsibilities to ensure prompt and timely decision-
making on significant matters of the Company. The
minutes of the meeting of each committee are placed
before the Board for its noting.
The Board also formulates several project specific sub-
committees from time to time in order to secure speedy
implementation and execution of the projects to meet
business needs. The Board is duly kept abreast of each of
the meetings of sub-committees as well.
The Committee of Directors (COD) supports the Board
by considering, reviewing and approving all borrowing,
investments, finance, banking and treasury related
proposals, within the overall limits approved by the Board
from time to time. The COD enables seamless flow of
procedures and assists the Board by catering to various
routine requirements.
Effective May 16, 2020, Finance Standing Committee
has been consolidated with the Committee of Directors
by enhancing the scope of the Committee of Directors
to include considering and approving matters related to
finance, investment, banking, treasury etc. within the
overall limits approved by the Board.
As on March 31, 2021, the internal Board committees of
the Company have been elucidated below:
The details of composition of the COD and its meetings
are given in the earlier section to this report.
Financial Matters
Review and approve all policies related to the financial matters of the Company inter
alia Investment policy, Foreign Exchange Policy, Commodity Hedging Policy, Banking
Authorization Policy.
Investment
Treasury
Review and approve inter-corporate loans, issuance of Corporate Guarantees, Letter of Comfort
to and on behalf of Company/ Wholly-Owned Subsidiaries/ Subsidiaries/ Associate Companies
in relation to loans and facilities availed by them.
Purchase, acquire, subscribe, transfer, sell, redeem or otherwise deal in the shares/ securities of
other Company/ body corporate or any other entity(s) other than for the purpose of trading;
Consider, review and approve all the borrowing proposals including financing proposals within the
overall limits approved by the Board from time to time and to create security/ charge(s) on all or any
of the assets of the Company as may be required for the purpose of the said borrowings and to do
such other incidental and ancillary activities as may be deemed necessary for execution;
Assess and allocate the working capital limits to business units;
Consider, review and approve treasury related proposals within the overall limit approved by
the Board.
Security related
proposals
Review, consider and approve securities related proposals including allotment of securities,
issuance of duplicate share certificates upon split, consolidation, renewal, remat;
Consider and review the proposals for buyback of debentures/ bonds issued by the Company from
time.
General
Authorisation
Nominate and appoint nominee directors on subsidiary, joint ventures, associate companies;
Authorisation w.r.t. account operation including opening, closing and operation of bank account,
demat account etc.;
Subsidiary Governance and oversight.
242
243
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports SHARE & DEBENTURE TRANSFER COMMITTEE
The Share & Debenture Transfer Committee is primarily
entrusted with the following responsibilities:
Allotment of shares, debentures, or any other
securities; and
Review and approval of transfer, transmission, deletion
and transposition of shares, debentures, or any other
securities.
The composition details of the Committee as on
March 31, 2021 is provided below:
Name of Member
GR Arun Kumar*
Designation
Whole-Time Director & Chief
Financial Officer (Chairperson)
SVP Corporate Finance (Member)
Senior Corporate Counsel (Member)
Anup Agarwal*
Jagdeep Singh
* Mr. GR Arun Kumar and Mr. Anup Agarwal ceased to be the
Chairperson and member of the Committee effective close of
business hours on April 24, 2021 and March 31, 2021 respectively
pursuant to their resignation.
Mr. Ajay Goel, Dy. CFO and Mr. Dindayal Jalan, Non-Executive
Independent Director have been appointed as the member and
Chairperson of the Committee effective April 1, 2021 and April 25,
2021, respectively.
GROUP EXECUTIVE COMMITTEE
The Executive Committee (EXCO) is responsible for
day-to-day running of the Company and meets on a
monthly basis. It is entrusted with executing the strategy
adopted by the Board; allocating resources in line with
GENERAL BODY MEETINGS
delegated authorities; managing risk; and monitoring the
operational and financial performance of the Company.
Authority is delegated by the Executive Committee to
the respective Chief Executive Officers of each of the
businesses. The Group Chief Executive Officer keeps
the Board informed of the EXCO’s activities through his
standing reports placed before the Board.
GROUP MANAGEMENT COMMITTEE
Vedanta continues to embark upon the enriching journey
of growth and expansion with best-in-class safety,
benchmark technology, and cost-efficient practices. The
design and culture of our organisation is cohesively built
in a manner which aims to ensure that the Group has the
right Management-In-Place (MIP) to drive the business
and take the organisation to the next level.
In line with our long-term vision to create value, a
fully empowered Group Management Committee
has been formed effective April 1, 2020 comprising
of the Group Chief Financial Officer, Chief Executive
Officer, Chief Human Resource Officer Head and Chief
Commercial Officer.
Since its inception, the Management Committee has been
instrumental in executing its function as the top-level
body collectively responsible for all key decisions taken
under the guidance of the Chairman and the Board.
The Committee is entrusted with driving all significant
initiatives and empowered by the Board to establish
operational efficiency in guiding business strategy and
achieving strong performance targets.
Annual General Meetings
The details of the last three years Annual General Meetings/Court Convened Meeting are as follows:
Location
Year
53RD ANNUAL GENERAL MEETING
Rangsharda Auditorium,
2017-18
K.C. Marg, Bandra
Reclamation,
Bandra (West), Mumbai
54TH ANNUAL GENERAL MEETING
Rangsharda Auditorium,
2018-19
K.C. Marg, Bandra
Reclamation,
Bandra (West), Mumbai
55TH ANNUAL GENERAL MEETING
Through Video
2019-20
Conferencing (VC) /
Other Audio-Visual
Means (OAVM)
Date & Time
Special Resolutions passed
August 24, 2018
at 10:30 a.m.
July 11, 2019
at 10:30 a.m.
Re-appointment of Ms. Lalita D. Gupte as
an Independent Director for a second and
final term.
Re-appointment of Mr. Ravi Kant as an
Independent Director for a second and
final term.
Offer or invitation for subscription
of Non-Convertible Debenture upto
` 20,000 crores on Private Placement basis.
Payment of remuneration to Mr. Tarun Jain
in excess of limits prescribed under Listing
Regulations.
September 30, 2020
at 3:00 p.m.
No Special resolution was passed
Weblink
Notice
Outcome
Minutes
Notice
Outcome
Minutes
Video
Notice
Outcome
FAQs
< BACK TO CONTENTS
Postal Ballot
Resolution passed through postal ballot during FY 2020-21:
Date of Postal Ballot Notice
Voting period
Date of approval
May 26, 2020 to
June 24, 2020
June 24, 2020
May 18, 2020
Resolution 1:
Date of declaration
of result
June 25, 2020
Web Link
Notice
Outcome
Approval for Voluntary Delisting of Equity Shares of the Company from BSE Limited and National
Stock Exchange of India Limited and Withdrawal of ‘Permitted to Trade’ Status on the Metropolitan
Stock Exchange of India Ltd. and Voluntary Delisting of the Company’s American Depository
Shares from the New York Stock Exchange and De-registration from the Securities & Exchange
Commission
Type of resolution: Special
Particulars
Assent (Public)
Assent (Promoters)
Sub-Total (1)
Dissent (Public)
Dissent (Promoters)
Sub-Total (2)
Total
Total Forms
% of Total
Shares Held
% of Holding
Shares Voted
% of Voted
VOTING RESULTS
2,056
10
2,066
13,756
0
13,756
15,822
13.00
0.06
13.06
86.94
0
86.94
100.00
1,176,162,246
1,863,618,788
3,039,781,034
448,123,827
0
448,123,827
3,487,904,861
33.72
53.43
87.15
12.85
0
1,076,281,682
1,863,618,788
2,939,900,470
209,701,061
0
12.85
209,701,061
34.17
59.17
93.34
6.66
0
6.66
100.00
3,149,601,531
100.00
Procedure adopted for Postal Ballot
In compliance with Listing Regulations and Section 108, 110 and other applicable provision of the Companies Act, 2013
and other applicable provisions, read with related Rules and circulars issued by SEBI and MCA in this regard, below is
detailed procedure of postal ballot followed by the Company:
1.
2.
3.
4.
5.
6.
7.
8.
The postal ballot notice was approved by the Board with the authorisation to the Company Secretary of the
Company to sign and issue the same along with explanatory statement and postal ballot form. Voting rights were
reckoned by fixing the record date and for ascertaining the members to whom the notice and postal ballot forms
shall be sent. Simultaneously, postal ballot notice was also placed on the website.
Mr. Upendra C Shukla, Practicing Company Secretary was appointed as the scrutiniser to conduct the process of
the postal ballot in a fair and transparent manner.
Due to difficulty in dispatch of the Notice along with the explanatory statement and postal ballot form by post or
courier and as permitted under Circulars issued by SEBI and MCA on account of the threat posed by COVID - 19,
the Company had sent the Notice in electronic form only.
To facilitate members whose e-mail id was not registered, to receive the Notice electronically and cast their vote,
the Company made special arrangement with its Registrar & Transfer Agent, for registration of e-mail addresses
in terms of the circulars issued by MCA.
In compliance with Regulation 44 of the Listing Regulations and pursuant to the provisions of Sections 108 and 110
of the Companies Act read with the rules framed thereunder and the MCA Circulars, the Company has extended
only the remote e-voting facility for its members, to enable them to cast their votes electronically instead of
submitting the postal ballot form.
An advertisement containing prescribed details was published in Financial Express (English-all editions) and
Navshakti (Marathi – Mumbai edition) informing about having dispatched the notice electronically.
Based on the scrutiniser’s report, the results of the postal ballot were declared by the Chairman within prescribed
timelines.
Subsequently, the results were intimated to the stock exchanges and displayed on the Company’s notice board at
its registered office and its corporate office as well.
244
245
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Proposal for Postal Ballot
There is no immediate proposal for any resolution through postal ballot.
SHAREHOLDERS
Means of Communication
FINANCIAL RESULTS
The quarterly/ half-yearly/ annual results along with audit/ limited review report, press release and
investor presentation is filed with the stock exchanges immediately after the approval of the Board.
The results are also published in at least one prominent national and one regional newspaper having
wide circulation viz. a viz. Business Standard, Financial Express, Economic Times and Maharashtra
Times, within 48 hours of the conclusion of the meeting,
Quarterly financial results are sent to shareholders whose e-mail ids are registered with the Registrar &
Transfer Agent.
Financial results are also uploaded on the Company’s website and can be accessed
at www.vedantalimited.com
NEWS RELEASES
Stock exchanges are regularly updated on any developments/ events and the same are simultaneously
displayed on the Company’s website as well.
All the releases can be accessed on the website of the Company at www.vedantalimited.com
INSITUTIONAL INVESTOR / ANALYSTS PRESENTATION
The schedule of analyst/investor meets are filed with the stock exchanges and the presentations are
uploaded on the website of the Company at www.vedantalimited.com.
With an intent to keep our shareholders abreast with the operational performance, the organic project
pipeline and internal developments in a transparent manner from time to time, the Company regularly
files Investor Briefs with Stock Exchanges.
WEBSITE
The Company has a dedicated section on ‘Investor Relation’ on its corporate website
www.vedantalimited.com which encompasses all the information for the investors like financial results,
policies & codes, stock exchange filings, press releases, annual reports, SEC Filings etc.
ANNUAL REPORT AND FORM 20F
In compliance with circulars issued by SEBI and MCA on account of COVID-19 pandemic, soft copies of
Annual Reports were sent to those shareholders whose e-mail ids were registered with the Company.
The Form 20F filed with SEC is also made available on the website of the Company.
SHAREHOLDER SATISFACTION SURVEY
As a part of our constant endeavour to improve shareholder services, the Company has provided a
shareholders’ satisfaction survey on its website for investors.
The same can be accessed at www.vedantalimited.com.
CHAIRMAN COMMUNIQUE
At every AGM, the Chairman addresses the shareholders on Company’s operations and performance
with his speech.
Further, Chairman’s statement addressing the shareholders is also published in the Annual Report of
the Company.
< BACK TO CONTENTS
Appeal to shareholders
Updation of PAN Bank Mandate & Contact Details
Shareholders are requested to update their e-mail ids, PAN and Bank Mandate with the
Company to ensure faster communication and credit of amounts. Regular reminders are also
sent to shareholders in this regard. Facility to update the details is also provided on the website
of the Company at www.vedantalimited.com.
Unclaimed Dividend
Reminders are sent to shareholders to encourage them to timely claim their unclaimed
dividend and shares before the same is transferred to the IEPF Account.
Demat
Shareholders are also encouraged to open Demat accounts to eliminate bad delivery, saves
stamp duty on transfers, ensures faster settlement, eases portfolio management and
provides ‘on-line’ access through internet. The Company had provided exclusive facility to its
shareholders to open their Demat accounts with Nil annual maintenance charges for first year.
Registration of Nomination
Registration of nomination makes easy for dependents to access your investments and set out
the proportion of your benefits to the nominees.
Correspondence Details
All the Share Transfer and Dividend Payment
Requests and Investors Related queries,
the shareholder can directly contact to our
Registrar and Transfer Agent
KFin Technologies Private Limited
Unit: Vedanta Limited
Selenium Building, Tower-B, Plot No. 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad, Rangareddi,
Telangana – 500 032, India
Tel: +91 40 6716 2222
Fax: +91 40 2300 1153
Email: einward.ris@kfintech.com
The Shareholders can reach out to the designated persons of any department in case of any query for the matters
enumerated below:
Company Secretary and Compliance Officer for
queries related to Corporate Governance and
Secretarial matters / Details of Nodal Officer
Queries and Update related to Financial
Statement of the Company
Corporate Communication related matters of
the Company
Sustainability Related Matters
Ms. Prerna Halwasiya
Company Secretary & Compliance Officer
Vedanta Limited
Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi – 110 003
Tel : +91 11 42262300
Email: comp.sect@vedanta.co.in
Mr. Varun Kapoor
Head - Investor Relations
Vedanta Limited
Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi – 110 003
Tel: +91 11 42262300
Email: vedantaltd.ir@vedanta.co.in
Ms. Roma Balwani
Senior Director, Corporate Communications & Brand
Vedanta Limited
75, Nehru Road, Vile Parle (East), Mumbai – 400 099
Tel: +91 22 66461000
Email: gc@vedanta.co.in
Mr. Andrew Lewin
Group Head – HSE and Sustainability
Vedanta Limited
Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi – 110 003
Tel: +91 11 42262300
Email: sustainability@vedanta.co.in
246
247
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Queries and Update on ADS issued by the Company: Overseas Custodian for ADS:
Citi- Depositary Receipt Services
388 Greenwich Street, 6th Floor
New York, NY 10013
Phone: 212-816-6839
Website: www.citi.com/dr
Indian Custodian for ADS:
Citibank N.A. Custody Services
FIFC- 11th Floor, G Block
Plot C-54 and C-55, BKC,
Bandra - East, Mumbai – 400 098
Tel: +91 22 6175 6060
Fax: +91 22 2653 2205
Queries related to Debenture issued by the Company: Debenture Trustee:
Axis Trustee Services Limited
Axis House, 2nd Floor, Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai – 400 025
Tel: +91 22 2425 2525
Fax: +91 22 2425 4200
Annual General Meeting for FY 2020-21
DATE & TIME
August 10, 2021
3:00 pm
VIRTUAL AGM
Virtual Annual General Meeting with live webcast and facility to participate through Video Conferencing /
other audio-visual means for shareholdets for attending the AGM from their respective places. Respected
shareholders are requested to kindly join the meeting through VC/OAVM facility by following the
instructions provided in the notes to the Notice of the AGM
FAQS
A set of Frequently Asked Questions (FAQs) made available for the shareholders on the Company’s
website at www.vedantalimited.com and NSDL website for a seamless participation through VC / OAVM.
ONLINE CHAT FACILITY
Facility to submit suggestions, feedbacks or questions online during the conduct of the Meeting will be
provided to the members.
ONLINE SPEAKER REGISTRATION
Members who desire to speak at the AGM can pre-register as speakers by sending request to the
Company as per the instructions provided in the Notice convening the Meeting.
Prior to AGM, site testing with the registered speaker shareholders shall be conducted to ensure smooth
participation during the AGM.
E-VOTING FACILITY
Remote e-voting facility will be provided to the shareholders before the date of AGM.
The Company will also provide remote e-voting facility to the members during the AGM till 15 minutes
post conclusion of the meeting to ensure participation and voting through electronic means.
TRANSCRIPT OF AGM
Recorded transcript of AGM will be made available on the website of the Company.
248
< BACK TO CONTENTS
Financial Year
The Financial Year of Company commences from April 1 and concludes on March 31 of each year.
Each quarter the Company reviewed and approved its financials. The previous and tentative dates for approval of the
financials are as follows:
Sr. No. Results for the period ended
1.
2.
3.
4.
First Quarter
Second Quarter and Half Year
Third Quarter
Fourth Quarter and Year ended
FY 2020-21
Tentative Dates for FY 2021-22
October 03, 2020
November 06, 2020
January 29, 2021
May 13, 2021
End of July 2021
End of October 2021
End of January 2022
End of April 2022
Dividend
For the period under review, the Company has declared and paid dividend as detailed below:
Date of Board Meeting
Type of Dividend
Amount of Dividend
Record Date
EQUITY SHARES
October 24, 2020
First Interim Dividend
` 9.50 per share
Saturday, October 31, 2020
The payment of the above-mentioned dividend was duly completed within the statutory timelines.
Further, the Board has not recommended any final dividend.
Listing Details
Particular
Indian Stock
Exchange
Global Stock
Exchange
BSE Limited (BSE)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001
National Stock Exchange of India Limited (NSE)
Exchange Plaza, Plot No. C/1, G-Block, Bandra-Kurla Complex,
Bandra(East), Mumbai – 400 051
New York Stock Exchange (NYSE)
American Depository Shares (ADS)
Scrip Code
500295
ISIN code
INE205A01025
VEDL
INE205A01025
VEDL
CUSIP No. 92242Y100
Notes:
Non-Convertible Debentures of the Company are also listed on BSE Limited (BSE), details of the same are provided later in this report.
Commercial Papers of the Company were listed on National Stock Exchange of India Limited, details of the same are provided later in this report.
Company has paid annual listing fees for the FY 2020-21 to all the Stock Exchanges (Indian & Global), where the securities of the Company are listed.
STOCK PRICE DATA FOR FY 2020-21
E
BSE – High Low (In
)
Mar-21
205.2
Feb-21
161.45
Jan-21
160
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
119.9
91.25
92.75
122.6
112.5
Jul-20
103.75
Jun-20
92.8
230.8
214.6
189.7
170.5
122.85
140.35
141.45
134.65
117.85
113.5
11.36
9.16
8.65
May-20
77.05
98.2
Apr-20
62.4
90.8
NYSE – High Low (In $)
Mar-21
Feb-21
Jan-21
Dec-20
Nov-20
Oct-20
Sep-20
Aug-20
Jul-20
Jun-20
May-20
Apr-20
12.91
11.77
10.28
8.90
6.71
7.50
7.52
7.10
6.10
6.00
5.32
4.67
6.63
4.92
5.04
6.60
6.10
5.62
4.96
4.04
3.24
216.4
172.5
162.35
NSE – High Low (In
E
)
Mar-21
Feb-21
230.1
210.2
Jan-21
188
Dec-20
Nov-20
163.1
118.8
Oct-20
139.85
Sep-20
140.7
Aug-20
130.85
Jul-20
113
Jun-20
112.75
122.3
94.9
96.4
128.1
117.25
107.75
97.05
May-20
97.95
80.5
Apr-20
87
64.45
High Price
Low Price
249
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
VEDL Share price v/s BSE Sensex & BSE Metal Index
VEDL Share price v/s NSE NIFTY 50 & NSE Metal Index
Shareholding Distribution
Shareholding according to shareholders class as on March 31, 2021
< BACK TO CONTENTS
400
350
300
250
200
250
200
50
0
400
350
300
250
200
250
200
50
0
0
2
-
r
p
A
0
2
-
y
a
M
0
2
-
n
u
J
0
2
-
u
J
l
0
2
-
g
u
A
0
2
-
p
e
S
0
2
-
t
c
O
0
2
-
v
o
N
0
2
-
c
e
D
1
2
-
n
a
J
1
2
-
b
e
F
1
2
-
r
a
M
0
2
-
r
p
A
0
2
-
y
a
M
0
2
-
n
u
J
0
2
-
u
J
l
0
2
-
g
u
A
0
2
-
p
e
S
0
2
-
t
c
O
0
2
-
v
o
N
0
2
-
c
e
D
1
2
-
n
a
J
1
2
-
b
e
F
1
2
-
r
a
M
VEDL
BSE Metal
BSE Sensex
VEDL
NSE Metal
Nifty 50
Share Transfer System
As part of the effective shareholder management and grievance redressal processes, various shareholder requests
received by the Company through the Registrar and Transfer Agent (RTA) are processed in the following manner:
Request received by
RTA
Requests relating to
transfer, transmission,
transposition, change
of name, deletion of
name are received from
shareholders having
physical shareholding.
Document Verification
The Company’s RTA,
KFin Technologies
Private Limited, verifies
the authenticity of
documents submitted by
shareholders;
RTA thereafter, sends the
requests to the Company
for processing.
Approval
The Company also
inspects and confirms the
veracity and validity of
documents;
Requests are then
approved by the duly
constituted Share &
Debenture Transfer
Committee designated
for the share transfer
procedures.
Communication to
Shareholder
Post Committee approval,
RTA completes the process
and communicates to the
respective shareholders;
Requests are generally
processed within 15 days of
receipt of the documents,
if documents are clear and
found to be in order in all
respects.
In addition to the above, a compliance certificate is issued on a half-yearly basis by a Practicing Company Secretary
pursuant to Regulation 40(9) of Listing Regulations reiterating due compliance of share transfer formalities by the
Company within timelines as required under the applicable provisions.
The Company/RTA has also duly complied with the operational guidelines including cut-off date till March 31, 2021 as
provided through SEBI circulars issued during the year with respect to re-lodgement and dematerialisation of share
transfer requests which were earlier rejected/returned due to deficiency in documents.
Quarterly audits are also carried out by the Practicing Company Secretary to reconcile the total admitted capital with
the depositories confirming that the total issued/paid-up and listed share capital of the Company holds agreement
with the aggregate number of shares held in physical and dematerialised forms. The reports for Share Capital Audit
Reconciliation and compliance certificates obtained in line with the statutory requirements are meticulously filed with
the Stock exchanges on a timely basis.
Capital Evolution
The details of capital evolution of the Company can be accessed on the website of the Company at
www.vedantalimited.com.
Shareholding of Nominal value of
E
1/-
1-5000
5001- 10000
10001- 20000
20001- 30000
30001- 40000
40001- 50000
50001- 100000
100001 & Above
Total
Sr.
No.
(a)
Category
Promoter’s holding
Indian promoters
Foreign promoters
(b) Public Shareholding
No. of
shareholders
596,893
4,920
2,047
576
247
167
323
652
% of Total
shareholders
No. of shares held
Shareholding (%)
98.52
156,881,190
0.81
0.34
0.10
0.04
0.03
0.05
0.11
35,665,082
28,936,043
14,150,760
8,572,585
7,701,266
23,699,849
3,441,589,864
4.22
0.96
0.78
0.38
0.23
0.21
0.64
92.58
100.00
605,825
100.00
3,717,196,639
Banks, Mutual funds, Financial Institutions, Insurance Companies (Central/State
Govt. Institutions/Non-Govt. Institutions)
FIIs/Foreign Corporate Bodies
Body Corporates
Indian Public
NRIs
Trust
H U F
Clearing Members
Foreign Bodies-DR
Foreign Nationals
IEPF
NBFCs
QIBs
Overseas Corp Bodies
Alternate Investment Funds
ESOS Trust
(c ) American Depository Shares
Grand Total
March 31, 2021
No. of
shares held
Face value
E
1/-
Percentage of
shareholding
160,656
2,048,458,132
386,457,791
604,826,916
136,396,624
279,447,410
9,296,258
644,821
13,165,845
12,421,553
1,343,227
1,380
4,918,437
797,913
41,574,609
447,500
3,741,164
12,193,159
160,903,244
3,717,196,639
0.00
55.11
10.40
16.27
3.67
7.52
0.25
0.02
0.35
0.33
0.04
0.00
0.13
0.02
1.12
0.01
0.10
0.33
4.33
100.00
1.
2.
3.
4.
5.
Twinstar Holdings Limited (Promoter Group) was earlier holding 2,48,23,177 American Depository Shares (ADS) representing
9,92,92,708 equity shares. One (1) ADS represents four (4) equity shares. These ADS have been converted into equity shares.
Twinstar Holdings Limited (Promoter Group) holds four Folio numbers.
Vedanta Holdings Mauritius II Limited (Promoter Group) has purchased 185,000,000 equity shares aggregating to 4.98% of equity share
capital of Vedanta Limited, on December 24, 2020.
3,08,232 shares are under abeyance category, pending for allotment as they are sub judice.
Vedanta Resources Limited (Acquirer) together with Twin Star Holdings Limited (PAC 1), Vedanta Holdings Mauritius Limited (PAC 2) and
Vedanta Holdings Mauritius II Limited (PAC 3), as persons acting in concert with the Acquirer (PACs), have acquired 374,231,161 equity
shares of the Company (24,14,43,115 equity shares (6.50%) by PAC 1; 10,73,42,705 equity shares (2.89%) by PAC 2 and 2,54,45,341
equity shares (0.68%) by PAC 3) under the voluntary open offer (Open Offer) made to the public shareholders of the Vedanta Limited
(Company) in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations,
2011, thereby increasing acquirer’s indirect shareholding in the Company from 55.1% to 65.18%.
250
251
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Shareholding distribution as on March 31, 2021
(%)
Shareholding distribution post volutary open offer
(%)
55.11
20.64
10.40
7.77
6.09
Promoter & Promoter
Group
Foreign Institutional
Investors
Domestic Institutional
Investors
Individuals (Indian
Resident & NRIs)
Others - Body
Corporates, HUF, Trusts,
Foreign Nationals. etc
65.18
15.50
9.09
6.92
3.31
Dematerialisation of Shares and Liquidity
The shares of the Company are compulsorily traded
in dematerialised form on the stock exchanges. As on
March 31, 2021, ~ 99% shares of the Company are held in
dematerialised form.
Pursuant to the amendment in Listing Regulations,
post April 1, 2019, except in case of transmission or
transposition of securities, requests for effecting transfer
of securities shall not be processed unless the securities
are held in the dematerialised form with a depository.
The equity shares of the Company are freely tradable in
the market and are among the most liquid and actively
traded shares in the stock exchanges.
Physical
NSDL
CDSL
(%)
0.25
87.61
12.14
Outstanding ADS
As of March 31, 2021, 3,717,504,871 equity shares, par value ` 1 per equity share, were issued and outstanding (including
308,232 equity shares which have been issued but pending allotment), of which 160,903,244 equity shares were held in
the form of 40,225,811 ADSs. Each ADSs represents four equity shares and are listed and traded on the New York Stock
Exchange (NYSE). As of the year end, there were seven (7) registered holders of the ADS. Citibank N.A., New York acts
as the Depository for the ADS / ADR issued by the Company.
< BACK TO CONTENTS
LISTING OF DEBT SECURITIES
Non-Convertible Debentures
The following Secured Redeemable Non-Convertible Debentures (NCDs) are listed with the BSE Limited as on
March 31, 2021:
Sr.
No.
ISIN
Issuance date
Maturity date
Coupon rate Payment frequency
1
2
3
4
5
6
7
8
9
10
INE205A07063
07-Oct-2016
15-Apr-2021
8.75%
INE205A07071
07-Oct-2016
15-Sep-2021
8.75%
INE205A07139
INE205A07147
INE205A07154
INE205A07162
INE205A07170
INE205A07188
INE205A07196
INE205A07204
05-Apr-2018
05-Apr-2018
04-Jul-2018
09-Dec-2019
09-Dec-2019
30-Jan-2020
25-Feb-2020
17-Feb-2021
05-Apr-2021
15-Jun-2021
02-Jul-2021
09-Dec-2021
09-Dec-2022
30-Jun-2022
25-Feb-2030
17-Mar-2022
8.50%
8.50%
9.18%
8.90%
9.20%
8.75%
9.20%
7.50%
Interest Compounded
Annually and payable at
Maturity
Interest Compounded
Annually and payable at
Maturity
Annual
Annual
Annual
Annual
Annual
Annual
Annual
Annual
(for 1st Interest
Payment) and
subsequent interest
payment on maturity
for one month period.
E
No. of NCDs
(Face value of
10 lakhs each)
2,500
Amount
issued
(in crores)
250
2,500
250
23,500
16,500
10,000
9,000
7,500
12,700
20,000
5,000
2,350
1,650
1,000
900
750
1,270
2,000
500
Commercial Papers
As on March 31, 2020, the outstanding Commercial
Papers (CPs) listed with the National Stock Exchange
of India Limited aggregated to a total of ` 7,575 crores
which have been duly redeemed on a timely basis during
financial year 2020-21.
In addition, during financial year 2020-21, CPs
aggregating to a total of ` 5,160 crores as detailed below
have been issued, listed with the National Stock Exchange
of India Limited, and duly redeemed on timely basis. As on
March 31, 2021, there are nil outstanding CPs.
S. No. ISIN Number
Issuance date
Maturity date
Face Value (
E
)
1
2
3
4
5
6
7
8
9
10
11
12
13
INE205A14UT8
INE205A14VL3
INE205A14VJ7
INE205A14VK5
INE205A14VH1
INE205A14VF5
INE205A14VI9
INE205A14VG3
INE205A14VM1
INE205A14VN9
INE205A14VE8
INE205A14VD0
INE205A14VO7
09-Apr-2020
11-May-2020
06-May-2020
08-May-2020
30-Apr-2020
30-Apr-2020
05-May-2020
04-May-2020
20-May-2020
30-Jul-2020
27-Apr-2020
28-Apr-2020
27-Oct-2020
30-Apr-2020
10-Jun-2020
19-Jun-2020
22-Jun-2020
29-Jul-2020
30-Jul-2020
31-Jul-2020
03-Aug-2020
19-Aug-2020
31-Aug-2020
27-Oct-2020
28-Oct-2020
03-Nov-2020
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
Total No. of
Securities
5,000
4,000
10,000
4,000
10,000
8,500
7,000
4,700
3,000
14,000
10,000
10,000
13,000
Amount Issued
(in crores)
250
200
500
200
500
425
350
235
150
700
500
500
650
252
253
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Credit Ratings
Bank Loans
Status as on
March 31, 2020
Status as on
March 31, 2021
CRISIL
CRISIL AA
/ Outlook
Stable
India
Ratings
IND AA /
Outlook
Negative
CRISIL
CRISIL AA-/
Outlook Stable
India
Ratings
IND AA-/
Outlook
Stable
Date of Action
CRISIL
India Ratings
Outlook Change to
'Negative' from 'Stable' in
April 2020.
Downgrade to IND AA- from IND
AA with negative outlook in May
2020.
The revision in rating
outlook reflected the
risk of sharply lower
commodity prices,
especially of Brent crude,
zinc and Aluminium, being
sustained in fiscal 2021
in the wake of the Novel
Coronavirus (COVID-19)
pandemic.
Downgraded to 'CRISIL
AA-' from 'CRISIL AA'
and change in outlook to
stable from negative in
Oct 2020.
CRISIL downgraded its
ratings on long-term
facilities & NCD's on
the expectation of
higher financial leverage
and reduced cash
surplus at Vedanta over
medium-term.
Same as above
India Ratings downgraded its
ratings on long-term facilities
to IND AA- from IND AA
with negative outlook on the
expectation of deterioration in
Vedanta Limited’s credit profile
following a substantial decline
in economic activity due to the
COVID-19–related lockdown,
with the balance sheet leverage
remaining elevated in FY 21
and FY 22.
Change in outlook to Stable from
Negative in Feb 2021.
India Ratings changed its outlook
to Stable from negative reflecting
group’s improved liquidity position,
supported by the moderated
refinancing risks at VRL. The
liquidity improvement resulted
from group's improved operational
cashflows in 2HFY21, supported by
its enhanced volume performance,
cost improvements and a sharp
recovery in metal prices.
NA
Same as above
NA
Working Capital
Lines
Non-Convertible
Debentures
Commercial
Paper
CRISIL AA
/ Outlook
Stable /
CRISIL A1+
CRISIL AA
/ Outlook
Stable
CRISIL A1+
CRISIL AA-/
Outlook
Stable/CRISIL
A1+
CRISIL AA-/
Outlook Stable
IND A1+
CRISIL A1+
IND A+
No Change
No Change
< BACK TO CONTENTS
Plant Locations
Division
Copper Anodes (Smelter), Refinery,
Continuous Cast Copper Rods
Copper Cathodes (Refinery)
and Continuous Cast Copper
Rods/Wire
Continuous Cast Copper Rods
Iron Ore – Mining
Pig Iron Division 1
Metallurgical Coke (Met Coke)
Pig Iron Division 2
Aluminium Smelters
Alumina Refinery
Aluminium
Power
Oil & Gas
Location
SIPCOT Industrial Complex, Madurai By-pass Road, T.V. Puram PO, Tuticorin
Tamil Nadu – 628 002, India.
1/1/2 Chinchpada, Silvassa Union Territory of Dadra and Nagar Haveli – 396 230, India.
Gat 201, Plot no. 2, 3, 4, 5, 6 and 7 Pune Old Highway, Takwe Khurd. Post Kamshet.
Taluka Maval. Dist Pune, Maharashtra – 410 405, India. *
209-B, Piparia Industrial Estate, Piparia, Silvassa Union Territory of Dadra and
Nagar Haveli – 396 230, India
Ratnagiri – Y 1, R 57 Zaadzadgaon Block, MIDC, Ratnagiri, Maharashtra – 415 639, India.
Megalahally Office Complex, Megalahally Village, Hireguntanur, Hobli,
Chitradurga Taluk and district, Karnataka, India.
Sy NO 39, 41, 36/1 (p) 37 (P), 42/1 (p) 43/1 (p) Amona, P.O. Marcel, Bicholim,
Goa – 403 107, India.
SY No. 205, 207, Navelim, Sankhalim, Bicholim, Goa – 403 505, India.
SY No 192, 193, Vazare, Dodamarg, Sindhudurg, Maharashtra – 416 512.
SY No 177 N 120 (P) Navelim P.O. Sanquelim Bicholim, Goa – 403 505, India.
PMO Office, Bhurkahamuda, P.O. Sripura, Dist – Jharsuguda, Odisha – 768 202, India.
Alumina Refinery Project, At/P.O. Lanjigarh, Via – Viswanathpur, Kalahandi, Lanjigarh,
Odisha – 766 027, India.
Post Box No. 4, Mettur Dam R.S., Salem District, Tamil Nadu – 636 402, India.
Gat No. 924,925, 926 and 927. Sanaswadi Taluka Shirur.
Dist Pune, Maharashtra – 412 208, India.*
Bhurkahamunda, P.O. Sripura, Dist. Jharsuguda Odisha, Pin – 768 202. India.
Power Plant 1, Plot s/y No 44/4 & 44/5, Amona Village, Navellim,
Bicholim – Goa - 403 107, India.
SIPCOT Industrial Complex, Meelavitan, Tuticorin, Tamil Nadu, Pin – 628 002, India.
Assets
(a) RJ-ON-90/1 - Barmer Basin – India
(b) CB/OS-2 - Cambay Basin – India
(c) PKGM-1 Ravva - Krishna Godavari Basin – India
(d) KG-ONN-2003/1- Krishna Godavari Basin – India
(e) KG-OSN-2009/3 - Krishna Godavari Basin – India
(f) KG/ONDSF/Kaza/2018 - Krishna Godavari Basin – India
Pipeline
(a) Radhanpur Terminal, Patan, Gujarat, India, Pin – 385 340
(b) Viramgam Terminal, Viramgam, Ahmedabad, Gujarat, India, Pin – 382 150
(c) Bhogat Terminal, Bhogat Jam Kalyanpur Devbhumi Dwarka, Gujarat, Pin – 361 315
Plant
(a) Mangala Processing Terminal, Barmer, Rajasthan
Nagana Village, Near Kawas,
NH112, Barmer, Rajasthan – 344 035
(b) Raageshwari Gas Terminal, Rajasthan
(c) Suvali Onshore terminal, Gujarat
Survey No. 232, Suvali, Surat Hazira Road,
Surat, Gujarat – 394 510
(d) Raava Onshare terminal, Andhra Pradesh
Surasani Yanam,
Uppalaguptam Mandal, East Godavari Dist.,
Andhra Pradesh – 533 213
(e) Nagayalanka EPS Facility, Andhra Pradesh
Nagayalanka GGS, Vakkapatlavaripalem Village,
Nagayalanka Mandal, Krishna District,
Andhra Pradesh – 521 120
Paper *
GIDC Doswada, Ta. Fort Songadh, District Tapi, Gujarat – 394 365, India
*Non-operational unit
254
255
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Commodity Price Risk or Foreign Exchange Risk and
Hedging Activities
Fluctuation in commodity prices
Impact: Prices and demand for the Group’s products
are expected to remain volatile/uncertain and strongly
influenced by global economic conditions. Volatility in
commodity prices and demand may adversely affect our
earnings, cash flow and reserves.
Mitigation: Our Group has a well-diversified portfolio,
which acts as a hedge against fluctuations in commodities
and delivers cash flows through the cycle. We consider
exposure to commodity price fluctuations to be an
integral part of our Group’s business and its usual policy
is to sell its products at prevailing market prices, and not
to enter into long-term price hedging arrangements.
However, to minimise price risk for finished goods
where price of raw material is also determined by same
underlying base metal prices (e.g. purchase of alumina,
copper concentrate for manufacturing and selling
copper and aluminium products, respectively) we employ
back-to-back hedging. In exceptional circumstances,
we may enter into strategic hedging with prior approval
of the Executive Committee. The Group monitors the
commodity markets closely to determine the effect of
price fluctuations on earnings, capital expenditure and
cash flows.
Currency exchange rate fluctuations
Impact: Our assets, earnings and cash flows are
influenced by a variety of currencies due to the diversity
of the countries in which we operate. Fluctuations in
exchange rates of those currencies may have an impact
on our financials. Although the majority of the Group’s
revenue is tied to commodity prices that are typically
priced by reference to the US dollar, a significant
part of its expenses are incurred and paid in local
currency. Moreover, some of the Group borrowings are
denominated in US dollars, while a large percentage of
cash and liquid investments are held in other currencies,
mainly in the Indian rupee. Any material fluctuations of
these currencies against the US dollar could result in
lower profitability or in higher cash outflows towards debt
obligations.
Mitigation: We do not speculate in forex. We have
developed robust controls in forex management to
monitor, measure and hedge currency risk liabilities.
The Committee of Directors reviews our forex-related
matters periodically and suggests necessary courses of
action as may be needed by businesses from time to time,
and within the overall framework of our forex policy.
Exposures on foreign currency loans are managed
through the Group wide hedging policy, which is reviewed
periodically to ensure that the results from fluctuating
currency exchange rates are appropriately managed.
The Group strives to achieve asset liability offset of
foreign currency exposures and only the net position is
hedged. The Group uses forward exchange contracts,
currency swaps and other derivatives to hedge the
effects of movements in exchange rates on foreign
currency denominated assets and liabilities. The sources
of foreign exchange risk are outstanding amounts
payable for imported raw materials, capital goods and
other supplies as well as financing transactions and loans
denominated in foreign currencies. The Group is also
exposed to foreign exchange risk on its net investment
in foreign operations. Most of these transactions are
denominated in US dollars. Short-term net exposures are
hedged progressively based on their maturity. A more
conservative approach has been adopted for project
expenditures to avoid budget overruns, where cost of
the project is calculated taking into account the hedge
cost. However, all new long-term borrowing exposures
are being hedged. The hedge mechanisms are reviewed
periodically to ensure that the risk from fluctuating
currency exchange rates is appropriately managed.
Sr.
No.
Commodity
Name(1)
Exposure(2) in INR
towards the particular
commodity
Units
Aluminium
Oil
Gas
Copper
Silver
Gold
19,590
3,742
385
13,457
30
839
KT
mmboe
mmscf
KT
Oz
Oz
Exposure(2) in
quantity towards
the particular
commodity
1,403
12
10,164
293
206,388
65,508
% of such exposure hedged through commodity derivatives
Domestic market
International market
Total
OTC
Exchange
OTC
Exchange
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
83%
30%
0%
0%
96%
0%
0%
0%
0%
72% 0%
0%
0%
30%
0%
0%
96%
72%
83%
Commodity means a commodity whose price is fixed by reference to an international benchmark and having a material effect on the
financial statements.
Exposure for Aluminium and Oil is based on sales and closing stock and that for Gas is based on sales.
Gold and Silver are sold in the form of anode slime/copper concentrate. Anode slime is the residue formed while refining copper.
Exposure for Copper (including Gold and Silver) is based on opening stock, purchases and sales. Percentage of exposure not hedged
represents unpriced transactions as at March 31, 2021 as the same will be hedged as per the Company’s policy and contractual terms
once price period is fixed.
1
2
3
4
5
6
1.
2.
3.
256
< BACK TO CONTENTS
OTHER DISCLOSURES
Total fees for all services on a consolidated basis to the statutory auditor
Particulars
Audit fees (audit and review of financial statements)
Audit-related fees (including other miscellaneous audit related certifications)
Tax fees (tax audit, other certifications and tax advisory services)
All other fees (certification on corporate governance and advisory services)
Total
Mar-21
(In crores)
29
0
0
0
29
Framework for monitoring Subsidiary Companies
The details of the material subsidiaries of the Company
have been elucidated in the Directors’ Report forming
part of Annual Report. The Company has complied
with the provision of Listing regulations w.r.t material
subsidiary for FY 2020-21.
The Company has in place a policy on Determining
Material Subsidiary, duly approved by the Board in
conformity with the Listing Regulations. which can be
accessed at www.vedantalimited.com.
The subsidiary companies have their separate
independent Board of Directors authorised to exercise
all the responsibilities, duties and rights for effective
monitoring and management of the subsidiaries.
The Company supervises and monitors the performance
of subsidiary companies:
i.
ii.
iii.
iv.
v.
On a quarterly basis, the minutes of each of the
Board meetings of the subsidiary companies and
a statement of all significant transactions of the
subsidiary companies are placed before the Board of
Directors for their review and noting;
The minutes of each of the Audit Committee
meetings of the subsidiary companies are also placed
before the Audit & Risk Management Committee on
quarterly basis;
Presentations are made to the Company’s Board on
business performance by the senior management of
major subsidiaries of the Company;
Certain matters of the subsidiaries are reserved for
approval of the Board or Committee of Directors of
the Company;
Subsidiaries are subject to applicable Statutory
Audit and Secretarial Audit.
Further, appropriate disclosures related to subsidiaries
are made in Financial Statements / Directors’ report of
the Company as per Companies Act, 2013 and Listing
Regulations.
Materially Significant Related Party Transactions
A comprehensive note on related party transaction forms
a part of Directors’ Report.
Your Company has in place a policy on Related Party
Transactions, which envisages the procedure governing
Related Party Transaction entered into by the Company.
The said policy was revised in the board meeting held on
March 31, 2021 and displayed on the Company’s website
at www.vedantalimited.com.
Non-Compliance by the Company, Penalties,
Strictures imposed by Stock Exchange or SEBI or any
Statutory Authority on any matter related to capital
markets during the last three years
No penalty or strictures have been imposed by stock
exchange or SEBI or any statutory authority on any
matter related to capital markets on your Company
during the last three years.
Vigil Mechanism / Whistle-Blower Policy
Vedanta continues to assure utmost commitment
towards highest standards of morals and ethics in the
conduct of business. The employees have been provided
comprehensive access to lodge any complaint against
the Company’s accounting practices, internal controls,
auditing matters or any such suspected incidents of
fraud or violation of the Company’s Code of Conduct that
could adversely impact Company operations, business
performance and/or reputation.
All the employees of the Company and its subsidiaries
are encouraged and expected to raise their concerns.
The Audit & Risk Management Committee has laid down
the procedure governing the receipt, retention, and
treatment of complaints. Your Company has a Whistle-
Blower Policy in place as part of the Vigil Mechanism
which can be accessed at www.vedantalimited.com.
All the complaints are reported to the Director –
Management Assurance, who is independent of operating
management and the businesses. In line with global
practices, dedicated e-mail IDs (sgl.whistleblower@
vedanta.co.in), a centralised database, a 24x7 whistle-
blower hotline and a web-based portal (www.vedanta.
ethicspoint.com) have been created and implemented to
facilitate receipt and redressal of complaints.
W E B BASED PORTA
L
E
LIN
T
O
H
7
X
4
2
Whistle-Blower
Policy
C
E
N
T
R
A
L
I
S
E
D
D
A
TA
BASE
S
DEDICATED E-MAIL ID
257
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Disclosure in relation to the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal)
Act, 2013
The detailed disclosure forms part of the Directors’ Report.
COMPLIANCES
Discretionary Requirements
The Board
Shareholder’s
Rights
Quaterly financial
Results were sent
to the shareholders
whose e-mail Id
was registered with
the Company.
As on March 31,
2021, the Board
of the Company is
chaired by a Non-
Executive Director
who maintains the
Chairman’s office
at the Company’s
expense.
Unmodified
opinion in Audit
Report
During the year
under review,
the Independent
Auditors have
issued an
unmodified
opinion on true
and fair view of
the Company’s
financial
statements.
Reporting of
Internal Auditor
The same is reported
by briefing the Audit
& Risk Management
Committee through
discussion and
presentation of the
observations, review,
comments and
recommendations,
amongst others in
the Internal Audit
presentation by the
Company’s Internal
Auditor.
NYSE Corporate
Governance Listing
Standards
The Company has
made necessary
disclosures in
compliance with
NYSE Listing
Standards and
Listed Company
Manual and the
same have been
filed with NYSE
and available
on Company’s
website at www.
vedantalimited.com
Corporate Governance requirements specified in Regulation 17 to 27 and Regulation 46 of Listing Regulations
Your Company has complied with all the mandatory corporate governance requirements under the Listing Regulations.
Specifically, your Company confirms compliance with corporate governance requirement specified in Regulation 17 to
27 and clauses (b) to (i) and (t) of Sub-Regulation (2) of Regulation 46 of the Listing Regulations.
Corporate Policies of the Company
Your Company is inclined towards following highest levels of ethical standards in all our business transactions.
To ensure the same, the Company has adopted various policies, codes and practices. The policies are reviewed
periodically by the Board and are updated in line with amended laws and requirements. The key policies adopted are
detailed below:
Category of Policy /
Code
Code of Business
Conduct and Ethics
Brief summary
Web link
The Code details on uncompromising business
ethics which is an integral part of Company’s values
and method of conducting business. It’s based on
the core values of Trust, Entrepreneurship, Innovation,
Excellence, Integrity, Respect and Care.
www.vedantalimited.com/
CorporateGovernance
Amendments
during FY 2020-21
There has been
no change in the
Code
The Whistle-Blower Policy also forms part of the
Code.
The Code also covers areas such as Conflict of
Interest, Gift, Competition and Fair dealings,
Protection and use of Company Assets etc.
The policy ensures that the conduct of Company’s
business impacts the society through major thrust
areas of education, women empowerment, sport
& culture, drinking water & sanitation, agriculture
& animal husbandry, community infrastructure,
health care and disaster management and rescue
and relief operations.
The policy details the guidelines on identification
and appointment of individual as a Director, KMP
and Senior Management Personnel including the
criterial on their qualification and independence,
manner and criteria for effective evaluation of
the performance. The Policy also details the
compensation principles responsibilities of
senior management and succession planning.
Corporate Social
Responsibility Policy
Nomination &
Remuneration Policy
258
www.vedantalimited.com/
CorporateGovernance
The policy was
amended on
May 13. 2021
www.vedantalimited.com/
CorporateGovernance
There has been
no change in the
policy
< BACK TO CONTENTS
Category of Policy /
Code
Insider Trading
Prohibition Code
Dividend
Distribution Policy
Related Party
Transaction Policy
Determining
Material Subsidiary
Policy
Policy for
determination
of Materiality for
Fair Disclosure of
Material Events
/ Unpublished
Price Sensitive
Information to
Stock Exchange(s)
and Archival Policy
Policy on
Prevention,
Prohibition and
Redressal of Sexual
Harassment at
Workplace
Brief summary
Web link
The Code lays down the guideline to regulate,
monitor and report trading in securities of
the Company, Policy & Procedures for inquiry
in case of leak of Unpublished Price Sensitive
Information and Code of Practices and Procedures
for Fair Disclosure & Policy for determination of
Legitimate Purpose.
The policy details guidelines for dividend
distribution for equity shareholders as per the
requirements of the Listing Regulations.
This Policy sets out the philosophy and processes
that is to be followed for approval and review
in respect of transactions entered into by the
Company with the identified Related Parties.
The policy determines the guidelines for material
subsidiaries of the Company and also provides the
governance framework for such material subsidiaries.
The policy determines the requirements for disclosing
material events including deemed material events for
the Company and its subsidiary companies which are
in nature of unpublished price sensitive information.
The policy also lays the guidelines on archival and
retention of records of the Company.
www.vedantalimited.com/
CorporateGovernance
www.vedantalimited.com/
CorporateGovernance
www.vedantalimited.com/
CorporateGovernance
www.vedantalimited.com/
CorporateGovernance
www.vedantalimited.com/
CorporateGovernance
Amendments
during FY 2020-21
The Code was
amended on
November 06,
2020
There has been
no change in the
policy
The Policy was
amended on
March 31, 2021
There has been
no change in the
policy
There has been
no change in the
policy
The purpose to this policy is to create and maintain
a healthy and conducive work environment, free
of discrimination. This includes discrimination on
any basis, including gender and any form of sexual
harassment.
www.vedantalimited.com/
CorporateGovernance
There has been
no change in the
policy
Awareness Sessions/ Workshops on Governance practices
Vedanta as an organisation strongly supports transparency and openness and believes in zero tolerance for unethical
practices. Employees across the Company as well as the group are regularly sensitised about the various policies and
governance practices of the Company through various interactive tools.
259
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports < BACK TO CONTENTS
DECLARATIONS & CERTIFICATIONS
Declaration by CEO on Code of Business Conduct &
Ethics
A Declaration by the CEO of the Company, stating that
the members of Board of Directors and Senior
Management Personnel have affirmed compliance
with the Code of Business Conduct and Ethics of the
Company in enclosed as Annexure I to this Report.
Compliance Certificate
The Compliance Certificate from the CEO of the
Company pursuant to Regulation 17(8) of the Listing
Regulations is enclosed as Annexure II to this Report.
Certificate from Company Secretary in Practice
A certificate from Chandrasekaran Associates,
Company Secretary in Practice certifying that none
of the directors on the Board of the Company have
been debarred or disqualified from being appointed or
continuing as directors of companies by SEBI /
Ministry of Corporate Affairs or any such statutory
authority pursuant to Regulation 34(3) and Schedule V
Para C clause (10)(i) of the Listing Regulations is
enclosed as Annexure III to this Report.
Auditor’s Certificate on Corporate Governance
The auditor’s certificate regarding compliance of
conditions of corporate governance pursuant to
Listing Regulations is enclosed as Annexure IV to this
Report.
Annexure I
Declaration by Chief Executive Officer on Code of Business Conduct and Ethics of the Company
In accordance with the provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015, I, Sunil Duggal, Whole-Time Director & Chief Executive Officer of Vedanta Limited,
hereby declare that all members of the Board and Senior Management Personnel have affirmed compliance with the
Code of Business Conduct and Ethics of the Company for FY 2020-21.
Date: May 13, 2021
For Vedanta Limited
Sunil Duggal
Whole-Time Director &
Chief Executive Officer
Insider Trading Monitoring Portal
Company has a robust mechanism
in place to prevent insider trading.
As a step towards digitisation,
a web-based portal has been
launched for designated
employees to enable them to
manage and report dealings in
securities of the Company and
ensure compliance with the Insider
Trading Prohibition Code
Employees are sensitised through
various knowledge sharing emails/
updates on a regular basis in
order to monitor and prevent any
non-compliance.
Online Gift Declaration Portal
The employees can neither accept
nor send gifts/ entertainment
in exchange of any business/
services/ giving off any confidential
information etc. to derive any
benefit conflicting with the interest
of the Company.
The Company has in place an online
gift declaration portal wherein
the employees are required to
promptly declare the gifts received
by them in compliance with the Gift
Policy of the Company forming part
of the Code of Business Conduct
and Ethics.
Compliance System
In order to ensure best in class
compliance monitoring and
reporting, Company has in place
an internal standard operating
procedure to manage statutory
compliances across all businesses
and a top of the line automated
compliance management
system with regular updates
on checklists of all applicable
statutory requirements.
As a best practice, it is mandatory
for all CEOs to issue and sign-off
on the compliance certificates for
their respective businesses for
placing it before the Audit & Risk
Management Committee and Board.
Chess e-learning module
Continuing the spirit and
reinforcing the vision of
“Zero Harm, Zero Waste and
Zero Discharge” your Company
launched an e-Learning
CHESS (Consolidated Health,
Environment, Safety and
Sustainability) Module aiming at
familiarisation of employees and
business partners to different
aspects of the HSE&S function.
It is mandatory for all the
executives to undertake the
module and impart learnings in day
to day business.
Code of Conduct – Training Module
and Annual Affirmation
Reinforcing the principles under
the Code of Business Conduct and
Ethics, the Company has in place
an automated training module for
mandatory annual training for all
employees across the group.
Further, in order to ensure
compliance with the Code of
Business Conduct and Ethics
(“Code”) of the Company by all the
employees, online affirmations
w.r.t. compliance with the Code are
also taken on an annual basis.
Launch of Vedanta’s 1st TCFD
Report on Climate Change
Your Company launched its
first Climate Change Report
in lines with the Taskforce
on Climate-related Financial
Disclosures (TCFD).
The report is in alignment
with guidelines issued by the
Financial Stability Board (FSB)
and document’s Vedanta journey
to substantially decarbonise its
business by 2050.
The report can be accessed at
www.vedantalimited.com
Employee Sensitisation – Ethics & Governance
Awareness Video Clips - With a firm beleif in zero
tolerane for unethical practices, your Company
sensitises employees about various unethical practices
including POSH, conflict of interest, anti-bribery,
corruption etc. through short video clips to make the
workplace a better place each day.
Ethics Quiz - In order to assess the awareness and
understanding of awareness principles of employees,
a quiz is also conducted on yearly basis.
Ethics Compliance Month - As part of its special
annual initiatives, your Company conducts Compliance
Month wherein it conducts awareness and training
sessions covering on governance and internal policies
such as prevention of insider trading, prevention of
sexual harassment, anti-bribery and anti-corruption,
anti-trust laws etc.
Innovation Portal & Cafes
Strengthening one of the core value, the Company is
promoting and developing innovation culture strategically
among the employees including business partners.
Vedanta 360 - Innovation portal is developed as unique
platform to capture all the thoughts across the organisation.
People are encouraged to showcase their innovation
thoughts, innovative succes stories and they may also seek
innovative solutions to the business challenges. This portal
has end to end integration from idea to Reward in near future.
Vedanta Innovation Cafe - a place at workplace are
established across the operations to provide conclucive
environment to think across business aspects and come
out with Innovation ideas.
Top ideas and success stories are published in Weekly
Innovation Wrap across the Company to keep the
momentum high and recognise the team efforts across
the Group.
260
261
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports Annexure II
CERTIFICATION
I, Sunil Duggal, Chief Executive Officer, certify that:
A.
I have reviewed financial statements and the cash flow statement for the year and that to the best of my
knowledge and belief:
(1)
(2)
These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
These statements together present a true and fair view of the Company’s affairs and are in compliance with
existing accounting standards, applicable laws and regulations.
There are, to the best of my knowledge and belief, no transactions entered into by the Company during the year,
which are fraudulent, illegal or violative of the Company’s code of conduct.
I accept responsibility for establishing and maintaining internal controls for financial reporting. I have evaluated the
effectiveness of internal control systems of the Company pertaining to financial reporting, and I have disclosed to
the auditors and the Audit Committee, where applicable, deficiencies in the design or operation of such internal
controls of which I am aware and the steps I have taken or propose to take to rectify these deficiencies.
B.
C.
D.
I have indicated to the Auditors and the Audit Committee, where applicable,
(1)
significant changes in internal control over financial reporting during the year;
(2)
(3)
significant changes in accounting policies during the year and that the same have been disclosed in the notes
to the financial statements; and
instances of significant fraud of which I have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Company’s internal control system over financial
reporting.
Sunil Duggal
Chief Executive Officer
DIN: 07291685
Date: May 13, 2021
< BACK TO CONTENTS
Annexure III
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015)
To,
The Members
Vedanta Limited
1st Floor, C wing, Unit 103,
Corporate Avenue, Atul Projects,
Chakala, Andheri (East), Mumbai – 400 093,
Maharashtra
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of
Vedanta Limited and having CIN L13209MH1965PLC291394 and having Registered office at 1st Floor, C wing, Unit 103,
Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai – 400 093, Maharashtra (hereinafter referred to as
‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with
Regulation 34(3) read with Schedule V Para-C Sub-clause 10(i) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the
Company & its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for
the Financial Year ending on March 31, 2021 have been debarred or disqualified from being appointed or continuing as
Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other
Statutory Authority:
Name of director
Anil Kumar Agarwal
Navin Agarwal
Guggilam Rajagopalan Arun Kumar
Sr.
No,
1.
2.
3.
4. Mahendra Kumar Sharma
5.
6.
7.
8.
Krishnamurti Venkataramanan
Upendra Kumar Sinha
Priya Agarwal
Padmini Somani
DIN
00010883
00006303
01874769
00327684
00001647
00010336
05162177
00046486
Date of appointment in
Company*
01.04.2020
17.08.2013
22.11.2016
01.06.2019
01.04.2017
13.03.2018
17.05.2017
05.02.2021
*Original date of appointment
Ensuring the eligibility of for the appointment / continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
For Chandrasekaran Associates
Company Secretaries
Dr. S Chandrasekaran
Senior Partner
Membership No. FCS No.: 1644
Certificate of Practice No.: 715
UDIN: F001644C000253225
Date: May 7, 2021
Place: New Delhi
i.
Due to restricted movement amid COVID-19 pandemic, we have verified the disclosures and declarations received
by way of electronic mode from the Company and could not be verified from the original records. The management
has confirmed that the records submitted to us are the true and correct.
262
263
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
< BACK TO CONTENTS
v. Obtained necessary declarations from the directors of the Company;
vi. Obtained and read the policy adopted by the Company for related party transactions;
vii.
Obtained the schedule of related party transactions during the year and balances at the year end. Obtained
and read the minutes of the audit committee meeting to verify that all related party transactions have been
pre-approved prior by the audit committee;
viii.
Performed necessary inquiries with the management and also obtained necessary specific representations
from management.
8.
The above-mentioned procedures include examining evidence supporting the particulars in the Corporate
Governance Report on a test basis. Further, our scope of work under this report did not involve us performing audit
tests for the purposes of expressing an opinion on the fairness or accuracy of any of the financial information or
the financial statements of the Company taken as a whole.
Basis for Qualified Opinion
9.
The Company entered into a transaction for sale of investments aggregating to ` 1,407 crores with its subsidiary
as part of its treasury operations, for which prior approval from audit committee as stipulated under Regulation
23(2) of the Listing Regulations was not taken. The same was subsequently ratified by the audit committee.
Qualified Opinion
10.
Based on the procedures performed by us, as referred in paragraph 7 above, and according to the information
and explanations given to us, except for the matter stated in paragraph 9 above, we are of the opinion that the
Company has complied with the conditions of Corporate Governance as specified in the Listing Regulations, as
applicable for the year ended March 31, 2021, referred to in paragraph 4 above.
Other matters and Restriction on Use
11.
This report is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
12.
This report is addressed to and provided to the members of the Company solely for the purpose of enabling
it to comply with its obligations under the Listing Regulations with reference to compliance with the relevant
regulations of Corporate Governance and should not be used by any other person or for any other purpose.
Accordingly, we do not accept or assume any liability or any duty of care or for any other purpose or to any other
party to whom it is shown or into whose hands it may come without our prior consent in writing. We have no
responsibility to update this report for events and circumstances occurring after the date of this report.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
______________________________
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAR7718
Place of Signature: Mumbai
Date: May 13, 2021
Annexure IV
Independent Auditor’s Report on compliance with the conditions of Corporate Governance as per provisions
of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended
The Members of Vedanta Limited
1st Floor, ‘C’ Wing
Unit 103, Corporate Avenue, Atul Projects
Chakala, Andheri (E), Mumbai
1.
The Corporate Governance Report prepared by Vedanta Limited (hereinafter the “Company”), contains details
as specified in regulations 17 to 27, clauses (b) to (i) and (t) of sub-regulation (2) of regulation 46 and para C, D, and
E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“the Listing Regulations”) (‘Applicable criteria’) for the year ended March 31, 2021
as required by the Company for annual submission to the Stock exchange.
Management’s Responsibility
2.
The preparation of the Corporate Governance Report is the responsibility of the Management of the Company
including the preparation and maintenance of all relevant supporting records and documents. This responsibility
also includes the design, implementation and maintenance of internal control relevant to the preparation and
presentation of the Corporate Governance Report.
3.
The Management along with the Board of Directors are also responsible for ensuring that the Company complies
with the conditions of Corporate Governance as stipulated in the Listing Regulations, issued by the Securities and
Exchange Board of India.
Auditor’s Responsibility
4.
Pursuant to the requirements of the Listing Regulations, our responsibility is to provide a reasonable assurance
in the form of an opinion whether, the Company has complied with the conditions of Corporate Governance as
specified in the Listing Regulations.
5.
6.
7.
We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on
Reports or Certificates for Special Purposes and the Guidance Note on Certification of Corporate Governance,
both issued by the Institute of Chartered Accountants of India (“ICAI”). The Guidance Note on Reports or
Certificates for Special Purposes requires that we comply with the ethical requirements of the Code of Ethics
issued by the Institute of Chartered Accountants of India.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality
Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and
Related Services Engagements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks associated in
compliance of the Corporate Governance Report with the applicable criteria. Summary of procedures performed
include:
i.
ii.
iii.
iv.
Read and understood the information prepared by the Company and included in its Corporate Governance
Report;
Obtained and verified that the composition of the Board of Directors with respect to executive and non-
executive directors has been met throughout the reporting period;
Obtained and read the Register of Directors as on March 31, 2021 and verified whether atleast one
independent woman director was on the Board of Directors throughout the year;
Obtained and read the minutes of the following committee meetings / other meetings held during April 1,
2020 to March 31, 2021:
(a) Board of Directors;
(b) Audit & Risk Management Committee;
(c) Annual General Meeting (AGM);
(d) Nomination and Remuneration Committee;
(e) Stakeholders Relationship Committee;
(f) Corporate Social Responsibility Committee;
264
265
REPORT ON CORPORATE GOVERNANCE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Statutory reports
Independent Auditor’s Report
To the Members of Vedanta Limited
EMPHASIS OF MATTER
REPORT ON THE AUDIT OF THE STANDALONE IND AS
FINANCIAL STATEMENTS
OPINION
We have audited the accompanying standalone Ind AS
financial statements of Vedanta Limited (“the Company”),
which comprise the Balance sheet as at March 31, 2021,
the Statement of Profit and Loss, including the statement
of Other Comprehensive Income, the Cash Flow
Statement and the Statement of Changes in Equity for
the year then ended, and notes to the standalone Ind AS
financial statements, including a summary of significant
accounting policies and other explanatory information
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid
standalone Ind AS financial statements give the
information required by the Companies Act, 2013, as
amended (“the Act”) in the manner so required and give
a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of
affairs of the Company as at March 31, 2021, its profit
including other comprehensive income, its cash flows and
the changes in equity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone Ind AS financial
statements in accordance with the Standards on Auditing
(SAs), as specified under section 143(10) of the Act.
Our responsibilities under those Standards are further
described in the ‘Auditor’s Responsibilities for the Audit
of the Standalone Ind AS Financial Statements’ section
of our report. We are independent of the Company
in accordance with the ‘Code of Ethics’ issued by the
Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit
of the financial statements under the provisions of the
Act and the Rules thereunder, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the
standalone Ind AS financial statements.
We draw attention to note 3(c)(A)(viii) of the
accompanying standalone financial results which
describes the uncertainty arising out of the demands
that have been raised on the Company, with respect to
government’s share of profit oil by the Director General
of Hydrocarbons and one of the pre-conditions for the
extension of the Production Sharing Contract (PSC)
for the Rajasthan oil block is the settlement of these
demands. While the Government has granted permission
to the Company to continue operations in the block till
July 31, 2021 or signing of the PSC addendum, whichever
is earlier, the Company, based on external legal advice,
believes it is in compliance with the necessary conditions
to secure an extension of this PSC and that the demands
are untenable and hence no provision is required in
respect of these demands. Our opinion is not modified in
respect of this matter.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgment, were of most significance in our
audit of the standalone Ind AS financial statements for
the financial year ended March 31, 2021. These matters
were addressed in the context of our audit of the
standalone Ind AS financial statements as a whole, and
in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter
below, our description of how our audit addressed the
matter is provided in that context.
We have determined the matters described below to
be the key audit matters to be communicated in our
report. We have fulfilled the responsibilities described
in the Auditor’s responsibilities for the audit of the
standalone Ind AS financial statements section of
our report, including in relation to these matters.
Accordingly, our audit included the performance of
procedures designed to respond to our assessment of
the risks of material misstatement of the standalone
Ind AS financial statements. The results of our audit
procedures, including the procedures performed to
address the matters below, provide the basis for our audit
opinion on the accompanying standalone Ind AS financial
statements.
< BACK TO CONTENTS
Key audit matters
How our audit addressed the key audit matter
Our audit procedures included the following:-
Recoverability of carrying value of property plant and equipment at Tuticorin (as described in note 3(c)(A)(vii) of the standalone
Ind AS financial statements)
As at March 31, 2021, the Company had significant
amounts of property, plant and equipment, capital
work in progress, exploration intangible assets under
development and investments being carried at cost.
We focused our efforts on the Cash Generating Unit
(“CGU”) at Tuticorin within the copper segment; as it
had impairment indicators and had a total carrying value
of `2,144 crore.
Recoverability of property plant and equipment has
been identified as a key audit matter due to:
Specifically, in relation to the CGU where impairment indicators
were identified, obtained and evaluated the valuation models
used to determine the recoverable amount by assessing the key
assumptions used by the management including:
Assessed through an analysis of internal and external factors
impacting the Company, whether there were any indicators of
impairment in line with Ind AS 36.
Assessed the basis for estimating the forecasted volumes and
the expected start date of the plant.
-
•
•
•
•
•
The significance of the carrying value of assets
being assessed.
The withdrawal of the Company’s licenses to
operate the copper plant.
The fact that the assessment of the recoverable
amount of the Company’s CGUs and investments
involves significant judgements about the future
cash flow forecasts, start date of the plant and the
discount rate that is applied.
The key judgements and estimates centered on the
likely outcome of the litigations, cash flow forecasts and
discount rate assumptions
-
Tested the weighted average cost of capital used for discounting
the cash flows to their present value.
- Tested the valuation models for arithmetical accuracy.
-
-
Engaged valuation experts to assist in performance of the above
procedures.
Assessed the implications of withdrawal of Company’s license
to operate the copper plant including sensitivities of key
assumptions. Also, read the court judgments in respect of the
case and external legal opinions in respect of the merits of
the appeal filed by the Company and assessed management’s
position through discussions with the legal counsel to
determine the basis of their conclusion.
•
Assessed the competence and objectivity of the experts engaged
by us.
• Assessed the disclosures made by the Company in this regard.
Our procedures in relation to evaluation of going concern included the
following:
Evaluation of Going Concern assumption of accounting (as described in note 3(c)(A)(xi) and 3(c)(A)(viii) of the standalone Ind AS
financial statements)
The standalone financial statements of the Company
are prepared on the going concern basis of accounting.
The evaluation of the appropriateness of adoption of
going concern assumption for preparation of these
standalone financial statements has been performed
by the management of the Company because of
uncertainties in the market conditions including future
economic outlook on account of the prevailing global
pandemic COVID-19 and the uncertainty around the
extension of the Production Sharing Contract (PSC) of
the Rajasthan oil and gas block.
Obtained an understanding of the process followed by the
management and tested the internal controls over the liquidity
assessment, compliance with the debt covenants and preparation
of the cash flow forecast, and validation of the assumptions and
inputs used in the model to estimate the future cash flows.
Tested the inputs and assumptions used by the management in
the cash flow forecast against historical performance, budgets,
economic and industry indicators, publicly available information, the
Company’s strategic plans and benchmarking of key market related
conditions.
•
•
The Company has prepared a cash flow forecast for
next eighteen months from year end which involves
judgement and estimation of key variables.
The above has been considered as a key audit matter as
auditing the Company’s going concern assessment as
described above is complex and involves a high degree
of judgment to assess the reasonableness of the cash
flow forecasts, planned refinancing actions and other
assumptions used in the Company’s going concern
analysis.
•
•
•
•
Assessed key assumptions including those pertaining to revenue
and the timing of significant payments in the cash flow forecast for
the following eighteen months.
Tested management’s sensitivity analysis on key assumptions like
input prices, discount rate and selling prices to determine their
impact on the projections of future cash flows also on any possible
cash outgo for securing the extension of the Rajasthan oil and gas
block.
Compared the details of the Company’s long-term credit facilities to
the supporting documentation.
Assessed the relationship between the parent company and the
Company, including inspection of various financings agreements
to examine whether the same were impacted by the affairs of the
parent company. Additionally, we assessed whether there are any
pre-existing arrangements between the parent and the Company to
alleviate the financial difficulties of the parent.
•
Assessed the disclosures made by the Company in this regard.
266
267
STANDALONEVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
STANDALONE CONTINUED...
Key audit matters
How our audit addressed the key audit matter
Key audit matters
How our audit addressed the key audit matter
< BACK TO CONTENTS
Our audit procedures included the following:-
Recoverability of disputed trade receivables in power segment (as described in note 3(c)(B)(ii) and note 7 of the standalone Ind
AS financial statements)
As of March 31, 2021 the value of disputed receivables in
the power segment aggregated to `1,323 crore.
Due to disagreements over the quantification or
timing of the receivable, the recovery of receivables
from GRIDCO, a customer in the power segment, are
subject to increased risk. Some of these balances are
also subject to litigation. These receivables include long
outstanding balances as well and are also subject to
counter party credit risk and hence considered as a key
audit matter.
Examined external legal opinions in respect of the merits of the case
and assessed management’s position through discussions with the
management’s in-house legal team to determine the basis of their
conclusion.
Examined the relevant state regulatory commission, appellate
tribunal and court rulings.
• Examined the underlying power purchase agreements.
•
•
•
Examined management’s assessment of recoverability of
receivables.
•
•
Sought independent external lawyer confirmation from Legal
Counsel representing the Company in these cases.
Assessed the competence and objectivity of the Company's
experts.
• Assessed the disclosures made by the Company in this regard.
Accounting and disclosure of transactions with the parent company and its affiliates (as described in note 37 of the standalone
Ind AS financial statements)
The Company has undertaken transactions with
Vedanta Resources Limited (‘VRL’), its parent company
and its affiliates pertaining to payment of brand and
management fee; and obtaining guarantees and
payment of commission in consideration thereof.
Obtained and read the Company’s policies, processes and
procedures in respect of identification of such related parties,
obtaining approval, recording and disclosure of related party
transactions.
Our procedures included the following:
•
Accounting and disclosure of such related party
transactions has been identified as a key audit matter
due to:
• Significance of such related party transactions;
•
•
Risk of such transactions being executed without
proper authorizations;
Risk of material information relating to such
transactions not getting disclosed in the financial
statements.
•
•
•
•
Tested such related party transactions and balances with the
underlying contracts, confirmation letters and other supporting
documents.
Held discussions and obtained representations from the
management in relation to such transactions.
Examined the approvals of the board and/or audit committee for
entering into these transactions.
Read the disclosures made in this regard in the financial statements
to assess whether the relevant and material information have been
disclosed.
•
Our audit procedures included the following: -
Claims and exposures relating to taxation and litigation (as described in note 3(c)(A)(viii), 3(c)(B)(i), 36(D), 42 of the standalone
Ind AS financial statements)
The Company is subject to a large number of tax and
legal disputes, including objections raised by auditors
appointed by the Director General Hydrocarbons in
the oil and gas segment, which have been disclosed /
provided for in the financial statements based on the
facts and circumstances of each case.
Taxation and litigation exposures have been identified
as a key audit matter due to the complexities involved
in these matters, timescales involved for resolution
and the potential financial impact of these on the
financial statements. Further, significant management
judgement is involved in assessing the exposure of each
case and thus a higher risk involved on adequacy of
provision or disclosure of such cases.
Obtained the summary of Company’s legal and tax cases and
assessed management’s position through discussions with the
Legal Counsel, Head of Tax and operational management, on both
the probability of success in significant cases, and the magnitude of
any potential loss.
Obtained an understanding of the process of identification of
claims, litigations and contingent liabilities and identified key
controls in the process. For selected controls we have performed
tests of controls.
Examined external legal opinions (where considered necessary) and
other evidence to corroborate management’s assessment of the
legal claims.
•
•
•
•
•
•
Assessed the competence and objectivity of the Company's
experts.
Engaged tax specialists to technically appraise the tax positions
taken by management with respect to local tax issues.
Assessed whether management assessment of similar cases
is consistent across the divisions and obtained management’s
explanations for differences, if any.
Assessed the relevant disclosures made within the financial
statements to address whether they reflect the facts and
circumstances of the respective tax and legal exposures and the
requirements of relevant accounting standards.
Recoverability of unutilized Minimum Alternate Tax (MAT) credits included under deferred tax assets (as described in note 3(c)
(A)(vi) and note 33 of the standalone Ind AS financial statements)
Deferred tax assets as at March 31, 2021 includes MAT
credits of `3,701 crore relating to the Company which
is available for utilization against future tax liabilities.
Out of the same, `340 crore is expected to be utilized in
the fourteenth year, fifteen years being the maximum
permissible time period to utilize the same.
Obtained an understanding of the management’s process for
estimating the recoverability of deferred tax assets and identified
key controls in the process. For selected controls we have
performed tests of controls.
Our audit procedures included the following:-
•
The analysis of the recoverability of deferred tax assets
has been identified as a key audit matter because the
assessment process involves judgement regarding the
future profitability and the likelihood of the realization of
these assets, in particular whether there will be taxable
profits in future periods that support the recognition
of these assets. This requires assumptions regarding
future profitability, which is inherently uncertain.
•
Obtained and analysed the future projections of taxable profits
estimated by management, assessed key assumptions used,
including the analysis of the consistency of the actual results
obtained by the various segments with those projected in the
previous year. We further obtained evidence of the approval of the
budgeted results included in the current year's projections and the
future cash flow projections.
•
Tested the computation of MAT credits recognized as deferred tax
assets.
• Assessed the disclosures made by the management in this regard.
We have determined that there are no other key audit
matters to communicate in our report.
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON
The Company’s Board of Directors is responsible for the
other information. The other information comprises
the information included in the Annual report, but does
not include the standalone financial statements and our
auditor’s report thereon.
Our opinion on the standalone financial statements does
not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on
the work we have performed, we conclude that there is a
material misstatement of this other information, we are
required to report that fact. We have nothing to report in
this regard.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
STANDALONE IND AS FINANCIAL STATEMENTS
The Company’s Board of Directors is responsible
for the matters stated in section 134(5) of the Act
with respect to the preparation of these standalone
Ind AS financial statements that give a true and fair
view of the financial position, financial performance
including other comprehensive income, cash flows and
changes in equity of the Company in accordance with
the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS)
specified under section 133 of the Act read with the
Companies (Indian Accounting Standards) Rules, 2015, as
amended. This responsibility also includes maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of
the Company and for preventing and detecting frauds
and other irregularities; selection and application of
appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and
the design, implementation and maintenance of
adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation
and presentation of the standalone Ind AS financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements,
management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and
using the going concern basis of accounting unless
management either intends to liquidate the Company or
to cease operations, or has no realistic alternative but to
do so.
Those charged with governance are also responsible for
overseeing the Company’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
STANDALONE IND AS FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the standalone Ind AS financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of these standalone Ind AS financial
statements.
268
269
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements STANDALONE CONTINUED...
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement
of the standalone Ind AS financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate
internal financial controls with reference to financial
statements in place and the operating effectiveness of
such controls.
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify
our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the Company to cease to continue as a going
concern.
Evaluate the overall presentation, structure and
content of the standalone Ind AS financial statements,
including the disclosures, and whether the standalone
Ind AS financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
270
most significance in the audit of the standalone Ind AS
financial statements for the financial year ended March
31, 2021 and are therefore the key audit matters. We
describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
OTHER MATTER
We did not audit the financial statements and other
financial information, in respect of an unincorporated
joint venture not operated by the Company, whose Ind AS
financial statements include total assets of `115 crore as
at March 31, 2021. The Ind AS financial statements and
other financial information of the said unincorporated
joint venture not operated by the Company have not
been audited and such unaudited financial statements
and other unaudited financial information have been
furnished to us by the management and our report on
the Ind AS financial statements of the Company, in so
far as it relates to the amounts and disclosures included
in respect of the said unincorporated joint venture, is
based solely on such unaudited information furnished
to us by the management. In our opinion and according
to the information and explanations given to us by the
Management, these financial statements and other
financial information of joint venture, is not material to
the Company. Our opinion is not modified in respect of
this matter.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor’s Report) Order,
2016 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in the “Annexure 1” a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and
explanations which to the best of our knowledge and
belief were necessary for the purposes of our audit;
(b) In our opinion, proper books of accounts as required
by law have been kept by the Company so far as it appears
from our examination of those books
(c) The Balance Sheet, the Statement of Profit and
Loss including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement
of Changes in Equity dealt with by this Report are in
agreement with the books of account
(d) In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read
with Companies (Indian Accounting Standards) Rules,
2015, as amended;
< BACK TO CONTENTS
(e) On the basis of the written representations received
from the directors as on March 31, 2021 taken on record
by the Board of Directors, none of the directors is
disqualified as on March 31, 2021 from being appointed as
a director in terms of Section 164 (2) of the Act;
(f) The matter described in Qualified opinion paragraph in
“Annexure 2” to this report, in our opinion, may have an
adverse effect on the functioning of the Company;
(g) With respect to the adequacy of the internal financial
controls over financial reporting of the Company
with reference to these standalone Ind AS financial
statements and the operating effectiveness of such
controls, refer to our separate Report in “Annexure 2” to
this report;
(h) In our opinion, the managerial remuneration for the
year ended March 31, 2021 has been paid/ provided by
the Company to its directors in accordance with the
provisions of section 197 read with Schedule V to the Act;
in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending
litigations on its financial position in its standalone Ind AS
financial statements – Refer Note 3(c)(A)(viii), 36(D), 42 to
the standalone Ind AS financial statements;
ii. The Company did not have any material foreseeable
losses in long-term contracts including derivative
contracts during the year ended March 31, 2021;
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and
Protection Fund by the Company.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
(i) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended
Place: Mumbai
Date: 13 May 2021
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAP3965
271
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements STANDALONE CONTINUED...
Annexure 1 referred to in paragraph 1 under the heading “Report on Other
Legal and Regulatory Requirements” of our report of even date
Re: Vedanta Limited (‘the Company’)
(i) (a)The Company has maintained proper records
showing full particulars, including quantitative details and
situation of fixed assets.
(c) There is no amounts of loans granted to companies
listed in the register maintained under section 189 of the
Act which are overdue for more than ninety days.
(iv) In our opinion and according to the information
and explanations given to us, provisions of sections
185 and 186 of the Act in respect of loans to directors
including entities in which they are interested and in
respect of loans and advances given, investments made
and guarantees given have been complied with by the
Company. The Company has not granted any security in
terms of sections 185 and 186 of the Act.
(v) In our opinion and according to information and
explanations given to us, the Company has not accepted
any deposit from the public during the year. In respect
of unclaimed deposits, the Company has complied with
the provisions of sections 73 to 76 of the Act and the
Companies (Acceptance of Deposits) Rules, 2014 (as
amended).
(vi) We have broadly reviewed the books of account
maintained by the Company pursuant to the rules made
by the Central Government for the maintenance of cost
records under section 148(1) of the Act, related to the
manufacture of goods and generation of electricity, and
are of the opinion that prima facie, the specified accounts
and records have been made and maintained. We have
not, however, made a detailed examination of the same.
(vii) (a) The Company is generally regular in depositing
with appropriate authorities undisputed statutory dues
including provident fund, employees’ state insurance,
income-tax, duty of custom, sales tax, value added
tax,goods and service tax, cess and other statutory dues
applicable to it, except for in case of payment of electricity
duty where there have been significant delays. The
provisions relating to excise duty and service tax are not
applicable to the Company.
(b) According to the information and explanations given to
us and audit procedures performed by us, no undisputed
amounts payable in respect of provident fund, employees’
state insurance, income-tax, sales tax, value added tax,
duty of custom, goods and service tax, cess and other
statutory dues were outstanding, at the year end, for
a period of more than six months from the date they
became payable. The provisions relating to excise duty
and service tax are not applicable to the Company.
(c) According to the records of the Company, the dues of
income-tax, sales-tax, service tax, customs duty, excise
duty and value added tax on account of any dispute, are as
follows:
(b) All fixed assets have not been physically verified by
the management during the year but there is a regular
programme of verification in our opinion is reasonable
having regard to the size of the Company and the nature
of its assets except for fixed assets aggregating to
` 1,337 crore at Tuticorin plant where due to suspension
of operations (refer note 3(c)(A)(vii) of the standalone
financial statements), management has been unable to
perform physical verification which was due in current
year. No material discrepancies were noticed wherever
such verification was performed.
(c) According to the information and explanations given by
the management and audit procedures performed by us,
the title deeds of immovable properties included in fixed
assets are held in the name of the Company except for the
title deeds of immovable properties in oil and gas blocks,
jointly owned with other joint venture partners, which
are held in the name of the licensee of the block. The
written down value of such immovable properties in the
accompanying financial statement aggregates to
` 50 Crore.
(ii) The management has conducted physical verification
of inventories at reasonable intervals during the year
except for inventories aggregating of ` 284 crore lying
at Tuticorin plant which is under suspension (refer note
3(c)(A)(vii) of the standalone financial statements).
No material discrepancies were noticed on physical
verification of inventories, wherever such verifications
were carried out. Inventories lying with third parties have
been confirmed by them as at March 31, 2021 and no
material discrepancies were noticed in respect of such
confirmations.
(iii) (a) The Company has granted loans to 7 companies
covered in the register maintained under section 189 of
the Act. In our opinion and according to the information
and explanations given to us, the terms and conditions
of the grant of such loans are not prejudicial to the
Company's interest.
(b) The Company has granted loans that are either
re-payable on demand or have a schedule for repayment
of interest and principal, to companies covered in the
register maintained under section 189 of the Act. We
are informed that (a) repayment of loan was received as
and when the demands were raised, during the year; and
(b) loans which had a schedule for repayment were not
due during the current year; and thus, there has been no
default on the part of the parties to whom the monies
have been lent. The payment of interest has been regular
in all cases.
272
(In ` Crores)
Amount*
49.45
0.57
151.56
29.78
0.14
98.29
0.40
27.95
18.00
28.86
5.47
239.16
8.86
23.19
8.00
14.67
0.18
99
7.10
222.60
0.33
1.85
5.44
5.83
0.18
40.19
< BACK TO CONTENTS
Name of the Statute
Nature of the dues
Platform
Period relates to Which amount
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Excise Act, 1944 Excise Duty
Central Sales Tax 1956 Sales Tax
Central Sales Tax 1956 Sales Tax
Central Sales Tax 1956 Sales Tax
December 2013 to February 2015
2013-14
1997-98 to 2012-13, 2014-15, 2016
1997-2013
October 2013 to July 2014, 2015-16
2000-2006, 2017-18
CESTAT/Supreme court
Assistant Commissioner
CESTAT
Commissioner
Commissioner Appeals
High Court
Additional Commissioner November 07 to July 08
Additional Commissioner 2004-13, FY 2013-14 to FY 2019-20
Tribunal
High Court
Central Sales Tax 1956 Sales Tax
Custom Act, 1962
Customs Duty
Joint Commissioner
CESTAT
Custom Act, 1962
Custom Act, 1962
Customs Duty
Customs Duty
Commissioner Appeals
Commissioner
Custom Act, 1962
Custom Act, 1962
Custom Act, 1962
Custom Act, 1962
Finance Act,1994
Finance Act,1994
Finance Act,1994
Finance Act,1994
Finance Act,1994
Customs Duty
Customs Duty
Customs Duty
Customs duty on
exports
Service Tax
Service Tax
Service Tax
Service Tax
Service Tax
Deputy Commissioner
High Court
Supreme Court
Assistant Commissioner
Assistant Commissioner
CESTAT
Joint Commissioner
Commissioner Appeals
Commissioner
FY 2009-10
1998-1999, 2009-10, 2010-11,
2012-13, 2016-17
FY 2018-19
2004-05 to 2013-14, 2016-17
to 2017-18
2012-13, 2014-15
2004-05 to 2009-10 and 2013-14 and
2012-13 to 2016-17 and 2019-20
2012-13
2005-06 to 2006-07
1996-97, 2005-10, 2015
FY 2015-16, FY 2017-18, FY 2018-19
FY 2015-2016, FY 2016-2017
2004-05 to 2015- 2016
2007-13
2010-11, 2012-13 to 2015-16
2014-15, 2016-17 and
2017-18 (Till June 30, 2017)
2006-07,2007-08, 2016-17
2018-19
Service Tax
GST
High Court
CESTAT
GST
Additional Commissioner 2017-18
Finance Act,1994
The Goods and Service
tax, 2017
The Goods and Service
tax, 2017
Income tax Act, 1961
Income tax Act, 1961
Income tax Act, 1961
Income tax Act, 1961
Additional
Income Tax demand
Additional Income Tax
demand
Additional Income Tax
demand
Additional Income Tax
demand & penalty
CIT Appeals
High Court
2006-07, 2008-09 to 2013-14
and 2016-17
2006-07 to 2013-14
1,454.17
1,943.62
Assessing Officer
1999-00, 2008-09, 2009-10
30.35
Income Tax Appellate
Tribunal
2002-03,2004-05 to 2009-10,
2011-12, 2013-14, 2014-15
2006-07
2,832.82
18,773.89
Income tax Act, 1961 Witholding Tax demand Income Tax Appellate
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Sales Tax
Tribunal
Joint Commissioner
Commissioner
High Court
Additional Commissioner 2014-15
Deputy Commissioner
Tribunal
2012 to 2015
2008-12
2014-15 and 2015-16
2007-08 to 2014-15
1998-99 to 2016-17
0.41
19.52
324.78
5.64
0.11
1.84
* Net of amounts paid under protest/ adjusted against refunds.
(viii) In our opinion and according to the information and
explanations given by the management, the Company has
not defaulted in repayment of loans or borrowing to bank
or government or dues to debenture holders, based on the
revised repayment schedules, for some such loans, which
has been drawn after taking effects of the moratorium
granted by the banks and availed by the Company, in view
of the Covid-19 pandemic. The Company did not have any
outstanding dues to financial institutions.
(ix) In our opinion and according to the information and
explanations given by the management, the Company has
utilized the monies raised by way of debt instruments in
the nature of debentures and term loans for the purposes
for which they were raised. According to the information
and explanations given to us and audit procedures
performed by us, the Company has not raised monies by
way of initial public offer or further public offer.
273
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements STANDALONE CONTINUED...
(x) Based upon the audit procedures performed for
the purpose of reporting the true and fair view of the
financial statements and according to the information
and explanations given by the management, we report
that no fraud by the Company or no material fraud on the
Company by the officers and employees of the Company
has been noticed or reported during the year.
(xi) According to the information and explanations given by
the management and audit procedures performed by us,
the managerial remuneration has been paid / provided in
accordance with the requisite approvals mandated by the
provisions of section 197 read with Schedule V to the Act.
(xii) In our opinion, the Company is not a Nidhi Company.
Therefore, the provisions of clause 3(xii) of the Order are
not applicable to the Company and hence not
commented upon.
(xiii) According to the information and explanations given
by the management and audit procedures performed by
us, transactions with the related parties are in compliance
with sections 177 and 188 of the Act where applicable
and the details have been disclosed in the notes to the
financial statements, as required by the applicable
accounting standards.
(xiv) According to the information and explanations
given to us and on an overall examination of the balance
sheet, the Company has not made any preferential
allotment or private placement of shares or fully or partly
convertible debentures during the year under review and
hence, reporting requirements under clause 3(xiv) of the
Order are not applicable to the Company and hence not
commented upon.
(xv) According to the information and explanations given
by the management and audit procedures performed
by us, the Company has not entered into any non-cash
transactions with directors or persons connected with
them as referred to in section 192 of the Act.
(xvi) According to the information and explanations
given to us and audit procedures performed by us, the
provisions of section 45-IA of the Reserve Bank of India
Act, 1934 are not applicable to the Company.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Place: Mumbai
Date: May 13, 2021
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAP3965
Annexure 2 to the Independent Auditor’s Report of even date on the Ind As
standalone financial statements of Vedanta Limted
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls over
financial reporting of Vedanta Limited (“the Company”)
as of March 31, 2021 in conjunction with our audit of the
standalone Ind AS financial statements of the Company
for the year ended on that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL
FINANCIAL CONTROLS
The Company’s Management is responsible for
establishing and maintaining internal financial controls
based on the internal control over financial reporting
criteria established by the Company considering the
essential components of internal control stated in the
Committee of Sponsoring Organisations of the Treadway
Commission (2013 Framework) (“COSO 2013 Criteria”).
These responsibilities include the design, implementation
and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence
to the Company’s policies, the safeguarding of its assets,
the prevention and detection of frauds and errors,
the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting with reference to these standalone financial
statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) and the Standards on Auditing
as specified under section 143(10) of the Companies
Act, 2013, to the extent applicable to an audit of internal
financial controls and, both issued by the Institute of
Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate internal
financial controls over financial reporting with reference
to these standalone financial statements was established
and maintained and if such controls operated effectively
in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls over financial reporting with reference to these
standalone financial statements and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding
< BACK TO CONTENTS
of internal financial controls over financial reporting with
reference to these standalone financial statements,
assessing the risk that a material weakness exists,
and testing and evaluating the design and operating
effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of
material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for
our qualified audit opinion on the internal financial
controls over financial reporting with reference to these
standalone financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS
OVER FINANCIAL REPORTING WITH REFERENCE TO
STANDALONE FINANCIAL STATEMENTS
A company's internal financial control over financial
reporting with reference to these standalone financial
statements is a process designed to provide reasonable
assurance regarding the reliability of financial reporting
and the preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company's internal financial
control over financial reporting with reference to these
standalone financial statements includes those policies
and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
preparation of financial statements in accordance with
generally accepted accounting principles, and that
receipts and expenditures of the company are being made
only in accordance with authorisations of management
and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection
of unauthorised acquisition, use, or disposition of the
company's assets that could have a material effect on the
financial statements.
INHERENT LIMITATIONS OF INTERNAL FINANCIAL
CONTROLS OVER FINANCIAL REPORTING
WITH REFERENCE TO STANDALONE FINANCIAL
STATEMENTS
Because of the inherent limitations of internal financial
controls over financial reporting with reference to these
standalone financial statements, including the possibility
of collusion or improper management override of
controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial
reporting with reference to these standalone financial
statements to future periods are subject to the risk that
the internal financial control over financial reporting with
reference to these standalone financial statements may
become inadequate because of changes in conditions,
or that the degree of compliance with the policies or
procedures may deteriorate.
QUALIFIED OPINION
According to the information and explanations given to us
and based on our audit, the following material weakness
has been identified in the effectiveness of the Company’s
internal financial controls over financial reporting as at
March 31, 2021:
The Company’s internal controls for benchmarking the
terms and authorisation of loans and guarantees between
itself or its subsidiaries with controlling shareholders and
their affiliates were not effective, which could potentially
result in loans being advanced and guarantees being
issued in a manner which may impact the recognition,
measurement and disclosure of such transactions in the
financial statements.
A ‘material weakness’ is a deficiency, or a combination
of deficiencies, in internal financial control over financial
reporting, such that there is a reasonable possibility that a
material misstatement of the company's annual or interim
financial statements will not be prevented or detected on
a timely basis.
In our opinion, except for the possible effects of the
material weakness described above on the achievement
of the objectives of the control criteria, the Company
has, in all material respects, adequate internal financial
controls over financial reporting with reference to these
standalone financial statements and such internal
financial controls over financial reporting with reference
to these standalone financial statements were operating
effectively as at March 31, 2021 based on the internal
control over financial reporting criteria established by
the Company considering the essential components of
internal control stated in COSO 2013 criteria.
EXPLANATORY PARAGRAPH
We also have audited, in accordance with the Standards on
Auditing issued by the Institute of Chartered Accountants
of India, as specified under Section 143(10) of the Act, the
standalone financial statements of the Company, which
comprise the Balance Sheet as at March 31, 2021, and
the related Statement of Profit and Loss including the
statement of Other Comprehensive Income, the Cash Flow
Statement and the Statement of Changes in Equity for
the year then ended, and notes to the standalone financial
statements, including a summary of significant accounting
policies and other explanatory information. The above
stated material weakness was considered in determining
the nature, timing and extent of audit tests applied in our
audit of the March 31, 2021 standalone financial statements
of the Company and this report does not affect our report
of even date, which expressed an unmodified opinion on
those standalone financial statements.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Place: Mumbai
Date: May 13, 2021
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAP3965
274
275
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements STANDALONE CONTINUED...
Balance Sheet
as at 31 March 2021
Particulars
ASSETS
Non-current assets
Property, Plant and Equipment
Capital work-in-progress
Intangible assets
Exploration intangible assets under development
Financial assets
Investments
Trade receivables
Loans
Derivatives
Others
Deferred tax assets (net)
Income tax assets (net)
Other non-current assets
Total non-current assets
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Derivatives
Others
Other current assets
Total current assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Total Equity
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Derivatives
Other financial liabilities
Provisions
Other non-current liabilities
Total non-current liabilities
Current Liabilities
Financial liabilities
Borrowings
Operational buyers' credit / suppliers' credit
Trade payables
(a) Total outstanding dues of micro, small and medium enterprises
(b)
Total outstanding dues of creditors other than micro, small and medium
enterprises
Derivatives
Other financial liabilities
Provisions
Income tax liabilities (net)
Other current liabilities
Total current liabilities
Total Equity and Liabilities
Note
As at
31 March 2021
(` in Crore)
As at
31 March 2020
5
5
5
5
6A
7
8
20
9
33
33
10
11
6B
7
12
13
8
20
9
10
14
15
17A
20
19
22
21
17B
18B,2(c)
18A,2(c)
20
19
22
21
38,222
9,096
27
1,605
60,887
1,323
180
-
1,258
333
1,787
2,371
117,089
5,555
2,016
1,136
2,861
1,475
523
66
5,071
1,939
20,642
137,731
372
76,418
76,790
20,913
50
250
1,169
2,360
24,742
1,140
6,029
209
3,594
139
19,355
98
46
5,589
36,199
137,731
37,087
11,027
31
1,059
60,787
1,346
183
3
1,673
3,464
1,682
2,272
120,614
5,689
2,118
832
1,846
347
1,596
548
3,826
2,034
18,836
139,450
372
69,523
69,895
21,629
9
288
1,185
2,539
25,650
10,819
7,129
182
3,328
38
14,861
95
46
7,407
43,905
139,450
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
276
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
< BACK TO CONTENTS
Statement of Profit and Loss
for the year ended 31 March 2021
Particulars
Revenue from operations
Other operating income
Other income
Total Income
EXPENSES:
Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods, work-in-progress and stock-in-trade
Power and fuel charges
Employee benefits expense
Finance costs
Depreciation, depletion and amortisation expense
Other expenses
Total expenses
Profit before exceptional items and tax
Net exceptional loss
Profit/ (Loss) before tax
Tax expense/ (benefit):
On other than exceptional items
Net current tax expense
Net deferred tax expense/ (benefit)
On exceptional items
Net deferred tax benefit
Net tax expense/ (benefit)
Net Profit/ (Loss) after tax (A)
Net Profit after tax before exceptional items (net of tax)
Other Comprehensive (loss)/ income
Items that will not be reclassified to profit or loss
Re-measurements gain/ (loss) of defined benefit plans
Tax (credit)/ expense
Gain/ (loss) on FVOCI equity investment
Items that will be reclassified to profit or loss
Net (loss)/gain on cash flow hedges recognised during the year
Tax credit/ (expense)
Net gain/ (loss) on cash flow hedges recycled to statement of profit and loss
Net tax (credit)/ expense
Exchange differences on translation
Tax (credit)/ expense
Total Other Comprehensive (Loss)/ Income for the year (B)
Total Comprehensive Income/ (Loss) for the year (A+B)
Earnings/ (Loss) per share (in `)
- Basic & Diluted
Note
26
27
28
29
24
30
5
31
32
33
(` in crores except otherwise stated)
Year ended
Year ended
31 March 2020
31 March 2021
35,417
37,120
441
320
2,870
10,948
38,728
48,388
13,990
204
70
6,763
903
3,193
2,519
6,850
34,492
13,896
(232)
13,664
104
3,138
(81)
3,161
10,503
10,654
0
(3)
63
60
(199)
69
174
(61)
(66)
(34)
(117)
(57)
10,446
12,493
227
1,430
7,930
765
3,328
3,264
7,186
36,623
2,105
(12,568)
(10,463)
4
(592)
(3,143)
(3,731)
(6,732)
2,693
(11)
4
(74)
(81)
82
(28)
(33)
11
374
59
465
384
(6,348)
34
28.23
(18.10)
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
277
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements STANDALONE CONTINUED...
< BACK TO CONTENTS
Statement of Cash Flows
for the year ended 31 March 2021
Statement of Changes in Equity
for the year ended 31 March 2021
Particulars
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/ (Loss) before taxation
Adjustments for:
Depreciation, depletion and amortisation
Capital work-in-progress written off/ impairment charge
Other exceptional items
Provision for doubtful debts/ advance/ bad debts written off
Exploration costs written off
Fair Value gain on financial assets held at fair value through profit or loss
Loss on sale of property, plant and equipment (net)
Foreign exchange loss (net)
Unwinding of discount on decommissioning liability
Share based payment expense
Interest and dividend Income
Interest expenses
Deferred government grant
Changes in assets and liabilities
Increase in trade and other receivables
Decrease in inventories
Decrease in trade and other payable
Cash generated from operations
Income taxes (paid)/ refund (net)
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Consideration paid for business acquisition (Including transaction cost of `3 Crore)
Purchases of property, plant and equipment(including intangibles)
Proceeds from sale of property, plant and equipment
Loans given to related parties
Loans repaid by related parties
Short-term deposits made
Proceeds from redemption of short-term deposits
Short term investments made
Proceeds from sale of short term investments
Interest received
Dividends received
Payment made to site restoration fund
Net cash from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of short-term borrowings (net)
Proceeds from current borrowings
Repayment of current borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Interest paid
Payment of dividends to equity holders of the parent, including dividend distribution tax
Payment of lease liabilities
Net cash used in financing activities
Net increase/ (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year (Refer note 12)
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
13,664
2,543
181
51
129
6
(93)
28
80
23
36
(10,730)
3,170
(75)
(1,339)
53
(1,452)
6,275
(228)
6,047
(59)
(2,669)
18
(579)
1,684
(1,441)
962
(18,468)
18,628
415
10,371
(94)
8,768
(8,726)
5,499
(6,908)
9,021
(5,564)
(3,439)
(3,519)
(164)
(13,800)
1,015
1,846
2,861
(10,463)
3,321
12,335
233
68
1
(152)
77
123
31
40
(2,597)
3,297
(74)
(857)
2,088
(790)
6,681
518
7,199
(33)
(2,161)
35
(2,870)
1,403
(913)
547
(34,231)
36,580
404
2,142
(16)
887
(7,663)
4,457
(3,805)
7,636
(4,681)
(3,790)
(1,444)
(159)
(9,449)
(1,363)
3,209
1,846
Notes:
1. The figures in parentheses indicate outflow.
2.
The above cash flow has been prepared under the "Indirect Method" as set out in Indian Accounting Standard (Ind AS) 7 -
statement of cash flows
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
278
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
Reserves and Surplus
Items of Other comprehensive
income
Capital
reserve
Securities
premium
Retained
earnings
A. EQUITY SHARE CAPITAL
Equity shares of `1 each issued, subscribed and fully paid
As at 31 March 2021 and 31 March 2020
B. OTHER EQUITY
Particulars
Balance as at 01 April 2019
Loss for the year
Other comprehensive income for the year, net of tax
Total Comprehensive Income for the year
Transfer from debenture redemption reserve (net)
Recognition of share based payment
Stock options cancelled during the year
Exercise of stock options
Dividends including tax (Refer note 35)
Balance as at 31 March 2020
Profit for the year
Other comprehensive loss for the year, net of tax
Total Comprehensive Income for the year
Transfer from debenture redemption reserve (net)
Recognition of share based payment
Stock options cancelled during the year
Exercise of stock options
Dividends (Refer note 35)
Balance as at 31 March 2021
26,027
-
-
-
-
-
-
-
-
26,027
-
-
-
-
-
-
-
-
26,027
19,009
-
-
-
-
-
-
-
-
19,009
-
-
-
-
-
-
-
-
19,009
13,704
(6,732)
(7)
(6,739)
180
-
52
7
(1,696)
5,508
10,503
(3)
10,500
503
-
60
(14)
(3,519)
13,038
Other reserves comprises:
Number of shares
(in crores)
372
Amount
(` in crores)
372
(` in crores)
Other
reserves
(Refer
below)
17,204
-
-
-
(180)
75
(52)
(23)
-
17,024
-
-
-
(503)
58
(92)
(44)
-
16,443
Equity
instruments
through OCI
Hedging
reserve
104
-
(74)
(74)
-
-
-
-
-
30
-
63
63
-
-
-
-
-
93
(54)
-
32
32
-
-
-
-
-
(22)
-
(17)
(17)
-
-
-
-
-
(39)
Foreign
currency
translation
reserve
1,514
-
433
433
-
-
-
-
-
1,947
-
(100)
(100)
-
-
-
-
-
1,847
Total
other
equity
77,508
(6,732)
384
(6,348)
-
75
-
(16)
(1,696)
69,523
10,503
(57)
10,446
-
58
(32)
(58)
(3,519)
76,418
Particulars
Balance as at 01 April 2019
Transfer to retained earnings
Recognition of share based payment
Stock options cancelled during the year
Exercise of stock options
Balance as at 31 March 2020
Transfer to retained earnings
Recognition of share based payment
Stock options cancelled during the year
Exercise of stock options
Balance as at 31 March 2021
Capital
redemption
reserve
Debenture
redemption
reserve
38
-
-
-
-
38
-
-
-
-
38
1,240
(180)
-
-
-
1,060
(503)
-
-
-
557
Preference
share
redemption
reserve
3,087
-
-
-
-
3,087
-
-
-
-
3,087
Amalgamation
Reserve
General
reserve
3
-
-
-
-
3
-
-
-
-
3
12,587
-
-
-
-
12,587
-
-
-
-
12,587
(` in crores)
Share
Based
Payment
Reserve
249
-
75
(52)
(23)
249
-
58
(92)
(44)
172
Total
17,204
(180)
75
(52)
(23)
17,024
(503)
58
(92)
(44)
16,443
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
279
VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
1
COMPANY OVERVIEW:
Vedanta Limited (“the Company”) is a diversified natural
resource company engaged in exploring, extracting
and processing minerals and oil and gas. The Company
engages in the exploration, production and sale of oil and
gas, aluminium, copper, iron ore and power.
The Company was incorporated on 08 September 1975
under the laws of the Republic of India. The registered
office of the Company is situated at 1st Floor, ‘C’ wing,
Unit 103, Corporate Avenue, Atul Projects, Chakala,
Andheri (East), Mumbai-400092, Maharashtra. The
Company’s shares are listed on National Stock Exchange
and Bombay Stock Exchange in India. In June 2007,
the Company completed its initial public offering of
American Depositary Shares, or ADS, each representing
four equity shares, and listed its ADSs on the New York
Stock Exchange. In July 2009, the Company completed
its follow-on offering of an additional 131,906,011 ADSs,
each representing four equity shares, which are listed on
the New York Stock Exchange.
The Company is majority owned by Twin Star Holdings
Limited (“Twin Star”), Finsider International Company
Limited (“Finsider”), Vedanta Holdings Mauritius II Limited
("VHM2L"), West Globe Limited (“West Globe”) and Welter
Trading Limited (“Welter”) which are in turn wholly-owned
subsidiaries of Vedanta Resources PLC ("VRPLC"), which
was a public limited company incorporated in the United
Kingdom and listed on the London Stock Exchange
(VRPLC has been delisted from London Stock Exchange
on 01 October 2018 and is renamed as “Vedanta
Resources Limited” ("VRL") with effect from 29 October
2018). Twin Star, Finsider, VHM2L, West Globe and Welter
held 37.1%, 10.8%, 5.0%, 1.2% and 1.0% respectively of
the Company's equity as at 31 March 2021.
Details of Company’s various businesses are as follows:
The Company’s oil and gas business consists of
business of exploration and development and
production of oil and gas.
The Company’s iron ore business consists of iron ore
exploration, mining and processing of iron ore, pig
iron and metallurgical coke. The Company has iron ore
mining operations in the States of Goa and Karnataka.
Pursuant to Honourable Supreme Court of India order,
mining operations in the state of Goa are currently
suspended.
The Company’s copper business is principally one
of custom smelting and includes captive power
plants at Tuticorin in Southern India. The Company's
copper business in Tamil Nadu, India has received an
order from the Tamil Nadu Pollution Control Board
(“TNPCB”) on 09 April 2018, rejecting the Company’s
application for renewal of consent to operate
under the Air and Water Acts for the 400,000 tpa
copper smelter plant in Tuticorin for want of further
clarification and consequently the operations were
suspended. The Company has filed an appeal with
TNPCB Appellate authority against the said order.
During the pendency of the appeal, TNPCB through its
order dated 23 May 2018 ordered for disconnection of
electricity supply and closure of copper smelter plant.
Post such order, the state government on 28 May
2018 ordered the permanent closure of the plant. We
continue to engage with the Government of India and
relevant authorities to enable the restart of operations
at Copper India.
Further, the Company’s copper business includes
refinery and rod plant Silvassa consisting of a 133,000
MT of blister/ secondary material processing plant,
a 216,000 tpa copper refinery plant and a copper rod
mill with an installed capacity of 258,000 tpa. The
plant continues to operate as usual, catering to the
domestic market. (Refer note3(c)(A)(vii)).
The Company’s aluminium business include a refinery
and captive power plant at Lanjigarh and a smelter and
captive power plants at Jharsuguda both situated in
the State of Odisha in Eastern India.
The Company’s power operations include a thermal
coal-based commercial power facility of 600 MW at
Jharsuguda in the State of Odisha in Eastern India.
Besides the above the Company has business interest
in zinc, lead, silver, iron ore, steel, ferro alloys and other
products and services through its subsidiaries in India and
overseas.
These are the Company’s separate financial statements.
The details of Company’s material subsidiaries,
associates and joint ventures is given in note 39.
Delisting of Vedanta Limited
The Company vide letter dated 12 May 2020 had informed
the stock exchanges that it has received a letter dated
12 May 2020 from its Holding Company, Vedanta
Resources Ltd. (“VRL”), wherein VRL had expressed
its intention to, either individually or along with one
or more subsidiaries, acquire all fully paid-up equity
shares of the Company (“Equity Shares”) that are held
by the public shareholders of the Company (as defined
under the Delisting Regulations, to be referred to as
“Public Shareholders”) and consequently voluntarily
delist the Equity Shares from BSE Limited and National
Stock Exchange of India Limited, the recognized stock
exchanges where the Equity Shares are presently listed
(“Stock Exchanges”), in accordance with the Delisting
Regulations (“Delisting Proposal”) and if such delisting is
< BACK TO CONTENTS
successful, then to also delist the Company’s American
Depositary Shares from the New York Stock Exchange
(“NYSE”) and deregister the Company from the Securities
and Exchange Commission (“SEC”), subject to the
requirements of the NYSE and the SEC.
After obtaining due approvals, the Public Shareholders
holding Equity Shares were invited to submit Bids
pursuant to the reverse book building process conducted
through the Stock Exchange Mechanism made available
by BSE during the bid period (05 October 2020 to
09 October 2020), in accordance with the Delisting
Regulations.
The total number of Offer Shares validly tendered
by the Public Shareholders in the Delisting Offer was
1,25,47,16,610 Offer Shares, which was less than the
minimum number of Offer Shares required to be accepted
by the Acquirers in order for the Delisting Offer to be
successful in terms of Regulation 17(1)(a) of the Delisting
Regulations. Thus, the Delisting Offer is deemed to
have failed in terms of Regulation 19(1) of the Delisting
Regulations.
BASIS OF PREPARATION AND BASIS OF
2
MEASUREMENT OF FINANCIAL STATEMENTS
(a) Basis of preparation
i)
These financial statements have been prepared
in accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015 and other relevant provisions of
the Companies Act, 2013 (the Act) (as amended from
time to time) and Guidance Note on Accounting for Oil
and Gas Producing Activities issued by the Institute of
Chartered Accountants of India.
These financial statements have been prepared in
accordance with the accounting policies, set out below
and were consistently applied to all periods presented
unless otherwise stated.
These financial statements are approved for issue by the
Board of Directors on 13 May 2021.
All financial information presented in Indian Rupee has
been rounded off to the nearest Crore except when
indicated otherwise. Amounts less than `0.50 Crore have
been presented as “0”.
ii) Certain comparative figures appearing in these
financial statements have been regrouped and/or
reclassified to better reflect the nature of those items
(Refer note 2(c) below).
(b) Basis of measurement
The financial statements have been prepared on a going
concern basis using historical cost convention and on an
accrual method of accounting, except for certain financial
assets and liabilities which are measured at fair value as
explained in the accounting policies below.
(c) Reclassification
On an ongoing basis, the management reviews the
changes in the nature of the Company’s operations,
selection and application of accounting policies
and recent accounting pronouncements to assess
appropriateness of presentation or classifications of
items in the financial statements. For the year ended 31
March 2021, the Company has revised the presentation
of the following items, neither of which has any material
impact, individually or in the aggergate, on the financial
statement:
Fly ash disposal expenses amounting to `202
i)
Crore (Year ended 31 March 2021: `333 Crore) has been
reclassified from ‘Other Expenses’ to ‘Power and Fuel
expense’ for the comparative year ended 31 March 2020.
The Company from the current year has decided to
ii)
present liabilities with respect to operational buyer’s/
suppliers credit and vendor financing (refer note
18(B)) on the face of the balance sheet, which were
previously included under trade payables to enhance the
understanding of the financial statements. The value of
such liabilities as at 01 April 2019 and 01 April 2020 was
`6,017 Crore and `7,129 Crore respectively (As at 31
March 2021: `6,029 Crore) crore.
iii) The constituents of cash and cash equivalents for
the purpose of cash flow statement to not consider the
earmarked unpaid dividend accounts hitherto included
in other bank balance. Consequently, such accounts
amounting to `75 Crore and `74 Crore as at 31 March
2019 and 31 March 2020 respectively have been excluded
from opening and closing cash and cash equivalents in the
statement of cash flows for the comparative year ended
31 March 2020.
3 (a) SIGNIFICANT ACCOUNTING POLICIES
Sale of goods/rendering of services (including
(A) Revenue recognition
•
revenue from contracts with customers)
The Company's revenue from contracts with customers
is mainly from the sale of oil and gas, aluminium, copper,
iron ore and power. Revenue from contracts with
customers is recognised when control of the goods or
services is transferred to the customer which usually is on
delivery of the goods to the shipping agent at an amount
that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or
services. Revenue is recognised net of discounts, volume
rebates, outgoing sales taxes/ goods and service tax and
other indirect taxes. Revenues from sale of by-products
are included in revenue.
280
281
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Certain of the Company's sales contracts provide for
provisional pricing based on the price on the London
Metal Exchange (LME) and crude index, as specified
in the contract. Revenue in respect of such contracts
is recognised when control passes to the customer
and is measured at the amount the entity expects to
be entitled – being the estimate of the price expected
to be received at the end of the measurement period.
Post transfer of control of goods, provisional pricing
features are accounted in accordance with Ind AS 109
‘Financial Instruments’ rather than Ind AS 115 Revenue
from contracts with customers and therefore the Ind AS
115 rules on variable consideration do not apply. These
‘provisional pricing’ adjustments, i.e. the consideration
adjusted post transfer of control are included in total
revenue from operations on the face of the statement
of profit and loss and disclosed by way of note to the
financial statements. Final settlement of the price is
based on the applicable price for a specified future period.
The Company’s provisionally priced sales are marked
to market using the relevant forward prices for the
future period specified in the contract and is adjusted in
revenue.
Revenue from oil, gas and condensate sales represent
the Company’s share in the revenue from sale of such
products, by the joint operations, and is recognised as
and when control in these products gets transferred to
the customers. In computing its share of revenue, the
Company excludes government’s share of profit oil which
gets accounted for when the obligation in respect of the
same arises.
Revenue from sale of power is recognised when delivered
and measured based on rates as per bilateral contractual
agreements with buyers and at a rate arrived at based
on the principles laid down under the relevant Tariff
Regulations as notified by the regulatory bodies, as
applicable.
A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Company performs part of its obligation by transferring
goods or services to a customer before the customer
pays consideration or before payment is due, a contract
asset is recognised for the earned consideration when
that right is conditional on the Company’s future
performance.
A contract liability is the obligation to transfer goods
or services to a customer for which the Company has
received consideration from the customer. If a customer
pays consideration before the Company transfers
goods or services to the customer, a contract liability is
recognised when the payment is received. The advance
payments received plus a specified rate of return/
discount, at the prevailing market rates, is settled by
supplying respective goods over a period of up to twenty
four months under an agreed delivery schedule as per
the terms of the respective agreements. As these
are contracts that the Company expects, and has the
ability, to fulfil through delivery of a non-financial item,
these are presented as advance from customers and are
recognised as revenue as and when control of respective
commodities is transferred to customers under the
agreements. The fixed rate of return/discount is treated
as finance cost. The portion of the advance where either
the Company does not have a unilateral right to defer
settlement beyond 12 months or expects settlement
within 12 months from the balance sheet date is classified
as a current liability.
Interest income
•
Interest income from debt instruments is recognised
using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to the gross carrying amount of a financial
asset. When calculating the effective interest rate,
the Company estimates the expected cash flows by
considering all the contractual terms of the financial
instrument (for example, prepayment, extension, call and
similar options) but does not consider the expected credit
losses.
Dividends
•
Dividend income is recognised in the statement of
profit and loss only when the right to receive payment is
established, provided it is probable that the economic
benefits associated with the dividend will flow to the
Company, and the amount of the dividend can be
measured reliably.
(B) Property, plant and equipment
i) Mining properties and leases
When a decision is taken that a mining property is viable
for commercial production (i.e. when the Company
determines that the mining property will provide
sufficient and sustainable return relative to the risks
and the Company decided to proceed with the mine
development), all further pre-production primary
development expenditure other than that on land,
buildings, plant, equipment and capital work in progress
is capitalized as property, plant and equipment under the
heading “Mining properties and leases” together with any
amount transferred from “Exploration and evaluation”
assets. The costs of mining properties and leases, include
the costs of acquiring and developing mining properties
and mineral rights.
The stripping cost incurred during the production phase
of a surface mine is deferred to the extent the current
period stripping cost exceeds the average period
stripping cost over the life of mine and recognised as an
< BACK TO CONTENTS
asset if such cost provides a benefit in terms of improved
access to ore in future periods and certain criteria are
met. When the benefit from the stripping costs are
realised in the current period, the stripping costs are
accounted for as the cost of inventory. If the costs of
inventory produced and the stripping activity asset
are not separately identifiable, a relevant production
measure is used to allocate the production stripping
costs between the inventory produced and the stripping
activity asset. The Company uses the expected volume
of waste compared with the actual volume of waste
extracted for a given value of ore/mineral production
for the purpose of determining the cost of the stripping
activity asset.
Deferred stripping costs are included in mining properties
within property, plant and equipment and disclosed as
a part of mining properties. After initial recognition,
the stripping activity asset is depreciated on a unit of
production method over the expected useful life of the
identified component of the ore body.
In circumstances where a mining property is abandoned,
the cumulative capitalised costs relating to the property
are written off in the period in which it occurs i.e. when the
Company determines that the mining property will not
provide sufficient and sustainable returns relative to the
risks and the Company decides not to proceed with the
mine development.
Commercial reserves are proved and probable reserves
as defined by the 'JORC' Code, 'MORC' code or 'SAMREC'
Code. Changes in the commercial reserves affecting unit
of production calculations are dealt with prospectively
over the revised remaining reserves.
ii) Oil and gas assets- (developing/producing assets)
For oil and gas assets, a "successful efforts" based
accounting policy is followed. Costs incurred prior to
obtaining the legal rights to explore an area are expensed
immediately to the statement of profit and loss.
All costs incurred after the technical feasibility and
commercial viability of producing hydrocarbons has been
demonstrated are capitalised within property, plant and
equipment - development/producing assets on a field-
by-field basis. Subsequent expenditure is capitalised only
where it either enhances the economic benefits of the
development/producing asset or replaces part of the
existing development/producing asset. Any remaining
costs associated with the part replaced are expensed.
Net proceeds from any disposal of development/
producing assets are credited against the previously
capitalised cost. A gain or loss on disposal of a
development/producing asset is recognised in the
statement of profit and loss to the extent that the net
proceeds exceed or are less than the appropriate portion
of the net capitalised costs of the asset.
iii) Other property, plant and equipment
The initial cost of property, plant and equipment
comprises its purchase price, including import duties
and non-refundable purchase taxes, and any directly
attributable costs of bringing an asset to working
condition and location for its intended use. It also includes
the initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is
located.
Land acquired free of cost or at below market rate
from the government is recognized at fair value with
corresponding credit to deferred income.
If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components) of
property, plant and equipment. All other expenses on
existing property, plant and equipment, including day-
to-day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit
and loss for the period during which such expenses are
incurred.
Gains and losses on disposal of an item of property, plant
and equipment computed as the difference between the
net disposal proceeds and the carrying amount of the
asset is included in the statement of profit and loss when
the asset is derecognised. Major inspection and overhaul
expenditure is capitalized, if the recognition criteria are
met.
iv) Assets under construction
Assets under construction are capitalized in the assets
under construction account. At the point when an
asset is capable of operating in the manner intended by
management, the cost of construction is transferred
to the appropriate category of property, plant and
equipment. Costs associated with the commissioning of
an asset and any obligatory decommissioning costs are
capitalised until the period of commissioning has been
completed and the asset is ready for its intended use.
v) Depreciation, depletion and amortisation expense
Mining properties and other assets in the course of
development or construction and freehold land are not
depreciated or amortised.
Mining properties
•
The capitalised mining properties are amortised on
a unit-of-production basis over the total estimated
remaining commercial proved and probable reserves of
each property or group of properties and are subject to
impairment review. Costs used in the unit of production
calculation comprise the net book value of capitalised
282
283
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | costs plus the estimated future capital expenditure
required to access the commercial reserves. Changes in
the estimates of commercial reserves or future capital
expenditure are dealt with prospectively.
Oil and gas producing facilities
•
All expenditures carried within each field are amortised
from the commencement of production on a unit
of production basis, which is the ratio of oil and gas
production in the period to the estimated quantities of
depletable reserves at the end of the period plus the
production in the period, generally on a field-by-field
basis or group of fields which are reliant on common
infrastructure.
Depletable reserves are proved reserves for acquisition
costs and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. These
assets are depleted within each cost centre. Reserves
for this purpose are considered on working interest basis
which are reassessed atleast annually. Impact of changes
to reserves are accounted for prospectively.
Other assets
•
Depreciation on other property, plant and equipment
is calculated using the straight-line method (SLM) to
allocate their cost, net of their residual values, over their
estimated useful lives (determined by the management)
as given below.
Management's assessment takes into account, inter
alia, the nature of the assets, the estimated usage of
the assets, the operating conditions of the assets, past
history of replacement and maintenance support.
Estimated useful lives of assets are as follows:
Asset
Useful life (in years)
Buildings (Residential, factory etc.)
Plant and equipment
Railway siding
Office equipment
Furniture and fixture
Vehicles
3-60
15-40
15
3-6
8-10
8-10
Major inspection and overhaul costs are depreciated over
the estimated life of the economic benefit to be derived
from such costs. The carrying amount of the remaining
previous overhaul cost is charged to the statement of
profit and loss if the next overhaul is undertaken earlier
than the previously estimated life of the economic
benefit.
The Company reviews the residual value and useful life
of an asset at least at each financial year-end and, if
expectations differ from previous estimates, the change
is accounted for as a change in accounting estimate.
Intangible assets
(C)
Intangible assets acquired separately are measured on
initial recognition at cost. Subsequently, intangible assets
are measured at cost less accumulated amortisation and
accumulated impairment losses, if any.
Intangible assets are amortised over their estimated
useful life on a straight line basis. Software is amortised
over the estimated useful life ranging from 2-5 years.
Amounts paid for securing mining rights are amortised
over the period of the mining lease ranging from 16-25
years.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognised in the statement of profit and loss
when the asset is derecognised.
The amortization period and the amortization method
are reviewed at least at each financial year end. If the
expected useful life of the asset is different from previous
estimates, the change is accounted for prospectively as a
change in accounting estimate.
(D) Exploration and evaluation intangible assets
Exploration and evaluation expenditure incurred prior to
obtaining the mining right or the legal right to explore are
expensed as incurred.
Exploration and evaluation expenditure incurred after
obtaining the mining right or the legal right to explore
are capitalised as exploration and evaluation assets
(intangible assets) and stated at cost less impairment,
if any. Exploration and evaluation intangible assets are
transferred to the appropriate category of property,
plant and equipment when the technical feasibility and
commercial viability has been determined. Exploration
intangible assets under development are assessed for
impairment and impairment loss, if any, is recognised
prior to reclassification.
Exploration expenditure includes all direct and allocated
indirect expenditure associated with finding specific
mineral resources which includes depreciation and
applicable operating costs of related support equipment
and facilities and other costs of exploration activities:
Acquisition costs - costs associated with acquisition
of licenses and rights to explore, including related
professional fees.
General exploration costs - costs of surveys and
studies, rights of access to properties to conduct
those studies (e.g., costs incurred for environment
clearance, defence clearance, etc.), and salaries and
< BACK TO CONTENTS
other expenses of geologists, geophysical crews and
other personnel conducting those studies.
Costs of exploration drilling and equipping exploration
and appraisal wells.
Exploration expenditure incurred in the process of
determining oil and gas exploration targets is capitalised
within "Exploration and evaluation assets" (intangible
assets) and subsequently allocated to drilling activities.
Exploration drilling costs are initially capitalised on a
well-by-well basis until the success or otherwise of the
well has been established. The success or failure of
each exploration effort is judged on a well-by-well basis.
Drilling costs are written off on completion of a well
unless the results indicate that hydrocarbon reserves
exist and there is a reasonable prospect that these
reserves are commercial.
Following appraisal of successful exploration wells,
if commercial reserves are established and technical
feasibility for extraction demonstrated, then the related
capitalised exploration costs are transferred into a single
field cost centre within property, plant and equipment -
development/producing assets (oil and gas properties)
after testing for impairment. Where results of exploration
drilling indicate the presence of hydrocarbons which are
ultimately not considered commercially viable, all related
costs are written off to the statement of profit and loss.
Expenditure incurred on the acquisition of a license
interest is initially capitalised on a license-by-license
basis. Costs are held, undepleted, within exploration and
evaluation assets until such time as the exploration phase
on the license area is complete or commercial reserves
have been discovered.
Net proceeds from any disposal of an exploration asset
are initially credited against the previously capitalised
costs. Any surplus/ deficit is recognised in the statement
of profit and loss.
(E) Non-current assets held for sale
Non-current assets and disposal groups are classified
as held for sale if their carrying amount will be recovered
through a sale transaction rather than through continuing
use. This condition is regarded as met only when the
sale is highly probable and the asset (or disposal group)
is available for immediate sale in its present condition.
Management must be committed to the sale which should
be expected to qualify for recognition as a completed sale
within one year from the date of classification.
Non-current assets and disposal groups classified as
held for sale are not depreciated and are measured at the
lower of carrying amount and fair value less costs to sell.
Such assets and disposal groups are presented separately
on the face of the balance sheet.
Impairment of non-financial assets
(F)
Impairment charges and reversals are assessed at the
level of cash-generating units. A cash-generating unit
(CGU) is the smallest identifiable group of assets that
generate cash inflows that are largely independent of the
cash inflows from other assets or group of assets.
The Company assesses at each reporting date, whether
there is an indication that an asset may be impaired. The
Company conducts an internal review of asset values
annually, which is used as a source of information to
assess for any indications of impairment or reversal of
previously recognised impairment losses. Internal and
external factors, such as worse economic performance
than expected, changes in expected future prices, costs
and other market factors are also monitored to assess
for indications of impairment or reversal of previously
recognised impairment losses.
If any such indication exists then an impairment review
is undertaken and the recoverable amount is calculated,
as the higher of fair value less costs of disposal and the
asset's value in use.
Fair value less costs of disposal is the price that would
be received to sell the asset in an orderly transaction
between market participants and does not reflect the
effects of factors that may be specific to the company
and not applicable to entities in general. Fair value for
mineral and oil and gas assets is generally determined
as the present value of the estimated future cash flows
expected to arise from the continued use of the asset,
including any expansion prospects, and its eventual
disposal, using assumptions that an independent market
participant may take into account. These cash flows are
discounted at an appropriate post tax discount rate to
arrive at the net present value.
Value in use is determined as the present value of the
estimated future cash flows expected to arise from the
continued use of the asset in its present form and its
eventual disposal. The cash flows are discounted using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset for which estimates of future cash
flows have not been adjusted. Value in use is determined
by applying assumptions specific to the Company's
continued use and cannot take into account future
development. These assumptions are different to those
used in calculating fair value and consequently the value
in use calculation is likely to give a different result to a fair
value calculation.
The carrying amount of the CGU is determined on a basis
consistent with the way the recoverable amount of the
CGU is determined.
284
285
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | If the recoverable amount of an asset or CGU is estimated
to be less than its carrying amount, the carrying amount
of the asset or CGU is reduced to its recoverable amount.
An impairment loss is recognised in the statement of
profit and loss.
Any reversal of the previously recognised impairment loss
is limited to the extent that the asset's carrying amount
does not exceed the carrying amount that would have
been determined if no impairment loss had previously
been recognised.
Exploration and evaluation assets:
In assessing whether there is any indication that an
exploration and evaluation asset may be impaired,
the Company considers, as a minimum, the following
indicators:
the period for which the Company has the right to
explore in the specific area has expired during the
period or will expire in the near future, and is not
expected to be renewed;
substantive expenditure on further exploration for and
evaluation of mineral resources in the specific area is
neither budgeted nor planned;
exploration for and evaluation of mineral resources
in the specific area have not led to the discovery of
commercially viable quantities of mineral resources
and the Company has decided to discontinue such
activities in the specific area;
sufficient data exist to indicate that, although a
development in the specific area is likely to proceed,
the carrying amount of the exploration and evaluation
asset is unlikely to be recovered in full from successful
development or by sale; and
reserve information prepared annually by external
experts.
When a potential impairment is identified, an assessment
is performed for each area of interest in conjunction
with the group of operating assets (representing a
cash-generating unit) to which the exploration and
evaluation assets is attributed. Exploration areas in
which reserves have been discovered but require major
capital expenditure before production can begin,
are continually evaluated to ensure that commercial
quantities of reserves exist or to ensure that additional
exploration work is underway or planned. To the extent
that capitalised expenditure is no longer expected to be
recovered, it is charged to the statement of profit and
loss.
(G) Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
286
Financial Assets – recognition & subsequent
(i)
measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation
or convention in the market place (regular way trades)
are recognised on the trade date, i.e., the date that the
Company commits to purchase or sell the asset.
For purposes of subsequent measurement, financial
assets are classified in four categories:
Debt instruments at amortised cost
•
A 'debt instrument' is measured at amortised cost if both
the following conditions are met:
a)
b)
The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and
Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in interest income in the statement of profit and loss.
The losses arising from impairment are recognised in the
statement of profit and loss.
Debt instruments at fair value through other
•
comprehensive income (FVOCI)
A 'debt instrument' is classified as at FVOCI if both of the
following criteria are met:
a)
The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and
b) The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVOCI category
are measured initially as well as at each reporting date at
fair value. Fair value movements are recognized in other
comprehensive income (OCI). However, interest income,
impairment losses and reversals and foreign exchange
gain or loss are recognised in the statement of profit
and loss. On derecognition of the asset, cumulative gain
or loss previously recognised in other comprehensive
income is reclassified from the equity to statement of
profit and loss. Interest earned whilst holding fair value
through other comprehensive income debt instrument is
reported as interest income using the EIR method.
< BACK TO CONTENTS
Debt instruments at fair value through profit or loss
•
(FVTPL)
FVTPL is a residual category for debt instruments.
Any debt instrument, which does not meet the criteria
for categorization as at amortized cost or as FVOCI, is
classified as at FVTPL.
b)
c)
Financial assets that are debt instruments and are
measured as at FVOCI
Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.
In addition, the Company may elect to designate a
debt instrument, which otherwise meets amortized
cost or FVOCI criteria, as at FVTPL. However, such
election is allowed only if doing so reduces or eliminates
a measurement or recognition inconsistency (referred
to as ‘accounting mismatch’). The Company has not
designated any debt instrument as at FVTPL.
Debt instruments included within the FVTPL category are
measured at fair value with all changes being recognized
in statement of profit and loss.
Equity instruments
•
All equity investments in the scope of Ind AS 109 are
measured at fair value. Equity instruments which are held
for trading and contingent consideration recognised by
an acquirer in a business combination to which Ind AS
103 applies are classified as at FVTPL. For all other equity
instruments, the Company may make an irrevocable
election to present in other comprehensive income
subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument
basis. The classification is made on initial recognition and
is irrevocable.
If the Company decides to classify an equity instrument
as at FVOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is
no recycling of the amounts from OCI to the statement of
profit and loss, even on sale of investment. However, the
Company may transfer the cumulative gain or loss within
equity. For equity instruments which are classified as
FVTPL all subsequent fair value changes are recognised in
the statement of profit and loss.
(ii) Financial Assets - derecognition
The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash
flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the
financial asset are transferred.
Impairment of financial assets
(iii)
In accordance with Ind AS 109, the Company applies
expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial
assets:
a)
Financial assets that are debt instruments, and
are measured at amortised cost e.g., loans, debt
securities and deposits
The Company follows 'simplified approach' for
recognition of impairment loss allowance on trade
receivables, contract assets and lease receivables.
The application of simplified approach does not require
the Company to track changes in credit risk. Rather,
it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its initial
recognition.
At each reporting date, for recognition of impairment loss
on other financial assets and risk exposure, the Company
determines whether there has been a significant increase
in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, lifetime ECL is used. If, in
a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then
the Company reverts to recognising impairment loss
allowance based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life of
a financial instrument. The 12-month ECL is a portion of
the lifetime ECL which results from default events that
are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows
that are due to the Company in accordance with the
contract and all the cash flows that the entity expects to
receive, discounted at the original EIR.
ECL impairment loss allowance (or reversal) recognized
during the year is recognized as income/ expense in
the statement of profit and loss. The balance sheet
presentation for various financial instruments is
described below:
a)
b)
Financial assets measured at amortised cost: ECL
is presented as an allowance, i.e., as an integral part
of the measurement of those assets. The Company
does not reduce impairment allowance from the
gross carrying amount.
Debt instruments measured at FVOCI: Since
financial assets are already reflected at fair value,
impairment allowance is not further reduced from
its value. Rather, ECL amount is presented as
'accumulated impairment amount' in the OCI.
For assessing increase in credit risk and impairment loss,
the Company combines financial instruments on the basis
287
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | of shared credit risk characteristics with the objective
of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a
timely basis.
The Company does not have any purchased or originated
credit-impaired (POCI) financial assets, i.e., financial
assets which are credit impaired on purchase/ origination.
(iv) Financial liabilities – Recognition & Subsequent
measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
or as loans, borrowings and payables, or as derivatives
designated as hedging instruments in an effective hedge,
as appropriate.
All financial liabilities are recognised initially at fair value
and, in the case of financial liabilities at amortised cost,
net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial
instruments.
The measurement of financial liabilities depends on their
classification, as described below:
Financial liabilities at fair value through profit or loss
•
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered
into by the Company that are not designated as hedging
instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified
as held for trading unless they are designated as effective
hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.
Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such at
the initial date of recognition, and only if the criteria in Ind
AS 109 are satisfied. For liabilities designated as FVTPL,
fair value gains/ losses attributable to changes in own
credit risk are recognized in OCI. These gains/losses are
not subsequently transferred to statement of profit and
loss. However, the Company may transfer the cumulative
gain or loss within equity. All other changes in fair value
of such liability are recognised in the statement of profit
and loss. The Company has not designated any financial
liability as at fair value through profit or loss.
Financial liabilities at amortised cost (Loans &
•
Borrowings and Trade and Other payables)
After initial recognition, interest-bearing loans
and borrowings and trade and other payables are
subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in the
statement of profit and loss when the liabilities are
derecognised as well as through the EIR amortisation
process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation
is included as finance costs in the statement of profit and
loss
(v) Financial liabilities - Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognised in the
statement of profit and loss.
(vi) Embedded derivatives
An embedded derivative is a component of a hybrid
(combined) instrument that also includes a non-
derivative host contract – with the effect that some
of the cash flows of the combined instrument vary in a
way similar to a stand-alone derivative. An embedded
derivative causes some or all of the cash flows that
otherwise would be required by the contract to be
modified according to a specified interest rate, financial
instrument price, commodity price, foreign exchange
rate, index of prices or rates, credit rating or credit index,
or other variable, provided in the case of a non-financial
variable that the variable is not specific to a party to the
contract. Reassessment only occurs if there is either
a change in the terms of the contract that significantly
modifies the cash flows that would otherwise be required
or a reclassification of a financial asset out of the fair value
through profit or loss.
If the hybrid contract contains a host that is a financial
asset within the scope of Ind AS 109, the Company does
not separate embedded derivatives. Rather, it applies
the classification requirements contained in Ind AS 109
to the entire hybrid contract. Derivatives embedded in
all other host contracts are accounted for as separate
derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those
of the host contracts and the host contracts are not held
< BACK TO CONTENTS
for trading or designated at fair value though profit or
loss. These embedded derivatives are measured at fair
value with changes in fair value recognised in statement
of profit and loss, unless designated as effective hedging
instruments.
(vii) Equity instruments
An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the
Company are recognised at the proceeds received, net of
direct issue costs.
(viii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and
the net amount is reported in the balance sheet if
there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on
a net basis, or to realise the asset and settle the liability
simultaneously.
(H) Derivative financial instruments and hedge
accounting
Initial recognition and subsequent measurement
In order to hedge its exposure to foreign exchange,
interest rate, and commodity price risks, the Company
enters into forward, option, swap contracts and other
derivative financial instruments. The Company does
not hold derivative financial instruments for speculative
purposes.
Such derivative financial instruments are initially
recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-
measured at fair value. Derivatives are carried as financial
assets when the fair value is positive and as financial
liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair value
of derivatives are taken directly to statement of profit
and loss, except for the effective portion of cash flow
hedges, which is recognised in OCI and later reclassified
to statement of profit and loss when the hedge item
affects profit or loss or treated as basis adjustment if
a hedged forecast transaction subsequently results in
the recognition of a non-financial asset or non-financial
liability.
For the purpose of hedge accounting, hedges are
classified as:
Fair value hedges when hedging the exposure to
changes in the fair value of a recognised asset or
liability or an unrecognised firm commitment
Cash flow hedges when hedging the exposure to
variability in cash flows that is either attributable to
a particular risk associated with a recognised asset
or liability or a highly probable forecast transaction
or the foreign currency risk in an unrecognised firm
commitment
Hedges of a net investment in a foreign operation
At the inception of a hedge relationship, the Company
formally designates and documents the hedge
relationship to which the Company wishes to apply
hedge accounting. The documentation includes the
Company’s risk management objective and strategy for
undertaking hedge, the hedging/ economic relationship,
the hedged item or transaction, the nature of the risk
being hedged, hedge ratio and how the entity will assess
the effectiveness of changes in the hedging instrument’s
fair value in offsetting the exposure to changes in the
hedged item’s fair value or cash flows attributable to
the hedged risk. Such hedges are expected to be highly
effective in achieving offsetting changes in fair value
or cash flows and are assessed on an ongoing basis to
determine that they actually have been highly effective
throughout the financial reporting periods for which they
were designated.
Hedges that meet the strict criteria for hedge accounting
are accounted for, as described below:
Fair value hedges
i)
Changes in the fair value of derivatives that are
designated and qualify as fair value hedges are recognised
in statement of profit and loss immediately, together
with any changes in the fair value of the hedged asset or
liability that are attributable to the hedged risk.
When an unrecognised firm commitment is designated
as a hedged item, the subsequent cumulative change
in the fair value of the firm commitment attributable to
the hedged risk is recognised as an asset or liability with
a corresponding gain or loss recognised in statement
of profit and loss. Hedge accounting is discontinued
when the Company revokes the hedge relationship, the
hedging instrument or hedged item expires or is sold,
terminated, or exercised or no longer meets the criteria
for hedge accounting.
ii) Cash flow hedges
The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge
reserve, while any ineffective portion is recognised
immediately in the statement of profit and loss.
Amounts recognised in OCI are transferred to statement
of profit and loss when the hedged transaction affects
profit or loss, such as when the hedged financial income
or financial expense is recognised or when a forecast
sale occurs. When the hedged item is the cost of a non-
financial asset or non-financial liability, the amounts
recognised in OCI are transferred to the initial carrying
amount of the non-financial asset or liability.
288
289
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | If the hedging instrument expires or is sold, terminated
or exercised without replacement or rollover (as part of
the hedging strategy), or if its designation as a hedge
is revoked, or when the hedge no longer meets the
criteria for hedge accounting, any cumulative gain or
loss previously recognised in OCI remains separately in
equity until the forecast transaction occurs or the foreign
currency firm commitment is met.
(I) Leases
The Company assesses at contract inception, all
arrangements to determine whether they are, or contain,
a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration.
(a) Company as a lessor
Leases in which the Company does not transfer
substantially all the risks and rewards of ownership of an
asset are classified as operating leases. Rental income
from operating lease is recognised on a straight-line basis
over the term of the relevant lease. Initial direct costs
incurred in negotiating and arranging an operating lease
are added to the carrying amount of the leased asset
and recognised over the lease term on the same basis
as rental income. Contingent rents are recognised as
revenue in the period in which they are earned.
Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from
the Company to the lessee. Amounts due from lessees
under finance leases are recorded as receivables at the
Company’s net investment in the leases. Finance lease
income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the net investment
outstanding in respect of the lease.
Company as a lessee
The Company applies a single recognition and
measurement approach for all leases, except for short-
term leases and leases of low-value assets. The Company
recognises lease liabilities towards future lease payments
and right-of-use assets representing the right to use the
underlying assets.
Right-of-use assets
(i)
The Company recognises right-of-use assets at the
commencement date of the lease (i.e., the date when
the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement
date less any lease incentives received. The right-of-use
assets are also subject to impairment.
Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated
useful lives of the assets as described in 'B' above.
(ii) Lease liabilities
At the commencement date of the lease, the Company
recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The
lease payments include fixed payments (and, in some
instances, in-substance fixed payments) less any lease
incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected to be
paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option
reasonably certain to be exercised by the Company and
payments of penalties for terminating the lease, if the
lease term reflects the Company exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment
occurs.
In calculating the present value of lease payments, the
Company uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is generally not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a
change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.
The Company’s lease liabilities are included in Other
Financial Liabilities.
(iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition
exemption to its short-term leases of equipment (i.e.,
those leases that have a lease term of 12 months or
less from the commencement date and do not contain
a purchase option). It also applies the lease of low-
value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line basis
over the lease term.
Inventories
(J)
Inventories and work-in-progress are stated at the lower
of cost and net realisable value. Cost is determined on the
following basis:
< BACK TO CONTENTS
purchased copper concentrate is recorded at cost on
a first-in, first-out ("FIFO") basis; all other materials
including stores and spares are valued on a weighted
average basis except in Oil and Gas business where
stores and spares are valued on FIFO basis;
finished products are valued at raw material cost plus
costs of conversion, comprising labour costs and an
attributable proportion of manufacturing overheads
based on normal levels of activity and are moved out
of inventory on a weighted average basis (except in
copper business where FIFO basis is followed) and
By-products and scrap are valued at net realisable
value.
Net realisable value is determined based on estimated
selling price, less further costs expected to be incurred
for completion and disposal.
(K) Government grants
Grants and subsidies from the government are
recognised when there is reasonable assurance that (i)
the Company will comply with the conditions attached to
them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is
recognised as income on a systematic basis in the
statement of profit and loss over the periods necessary
to match them with the related costs, which they are
intended to compensate.
Where the grant relates to an asset, it is recognised as
deferred income and released to income in equal amounts
over the expected useful life of the related asset and
presented within other income.
When the Company receives grants of non-monetary
assets, the asset and the grant are recorded at fair value
amounts and released to profit or loss over the expected
useful life in a pattern of consumption of the benefit of
the underlying asset.
When loans or similar assistance are provided by
governments or related institutions, with an interest
rate below the current applicable market rate, the effect
of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and
measured at fair value and the government grant is
measured as the difference between the initial carrying
value of the loan and the proceeds received. The loan
is subsequently measured as per the accounting policy
applicable to financial liabilities.
(L) Taxation
Tax expense represents the sum of current tax and
deferred tax.
Current tax is provided at amounts expected to be paid
(or recovered) using the tax rates and laws that have been
enacted or substantively enacted by the reporting date
and includes any adjustment to tax payable in respect of
previous years.
Subject to the exceptions below, deferred tax is provided,
using the balance sheet method, on all temporary
differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for
financial reporting purposes and on carry forward of
unused tax credits and unused tax losses;
deferred income tax is not recognised on initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit(tax loss); and
deferred tax assets (including MAT credit entitlement)
are recognised only to the extent that it is more likely
than not that they will be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when
the asset is realized or the liability is settled, based
on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date. Tax relating
to items recognized outside statement of profit and loss
is recognised outside statement of profit and loss (either
in other comprehensive income or equity).
The carrying amount of deferred tax assets (including
MAT credit entitlement) is reviewed at each reporting
date and is adjusted to the extent that it is no longer
probable that sufficient taxable profit will be available to
allow all or part of the asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities
and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Further, management periodically evaluates positions
taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Company shall reflect the effect of uncertainty for each
uncertain tax treatment by using either most likely
method or expected value method, depending on which
method predicts better resolution of the treatment.
(M) Retirement benefit schemes
The Company operates or participates in a number of
defined benefits and defined contribution schemes, the
assets of which (where funded) are held in separately
administered funds. For defined benefit schemes, the
cost of providing benefits under the plans is determined
by actuarial valuation each year separately for each plan
290
291
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | using the projected unit credit method by third party
qualified actuaries.
Remeasurement including, effects of asset ceiling and
return on plan assets (excluding amounts included in
interest on the net defined benefit liability) and actuarial
gains and losses arising in the year are recognised in full in
other comprehensive income and are not recycled to the
statement of profit and loss.
Past service costs are recognised in profit or loss on the
earlier of:
the date of the plan amendment or curtailment, and
the date that the Company recognises related
restructuring costs
Net interest is calculated by applying a discount rate to
the net defined benefit liability or asset at the beginning
of the period. Defined benefit costs are split into current
service cost, past service cost, net interest expense
or income and remeasurement and gains and losses on
curtailments and settlements. Current service cost and
past service cost are recognised within employee benefit
expense. Net interest expense or income is recognized
within finance costs.
For defined contribution schemes, the amount charged
to the statement of profit and loss in respect of
pension costs and other post retirement benefits is the
contributions payable in the year, recognised as and when
the employee renders related services.
(N) Share-based payments
Certain employees (including executive directors) of
the Company receive part of their remuneration in the
form of share-based payment transactions, whereby
employees render services in exchange for shares or
rights over shares (‘equity-settled transactions’).
The cost of equity-settled transactions with employees
is measured at fair value of share awards at the date at
which they are granted. The fair value of share awards
is determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on
the Company’s estimate of shares that will eventually
vest. The estimate of the number of awards likely to vest
is reviewed at each balance sheet date up to the vesting
date at which point the estimate is adjusted to reflect the
current expectations.
The resultant increase in equity is recorded in share based
payment reserve.
In case of cash-settled transactions, a liability is
recognised for the fair value of cash-settled transactions.
The fair value is measured initially and at each reporting
date up to and including the settlement date, with
changes in fair value recognised in employee benefits
expense. The fair value is expensed over the period until
the vesting date with recognition of a corresponding
liability. The fair value is determined with the assistance
of an external valuer.
(O) Provisions, contingent liabilities and contingent
assets
The assessments undertaken in recognising provisions
and contingencies have been made in accordance with
the applicable Ind AS.
Provisions represent liabilities for which the amount or
timing is uncertain. Provisions are recognized when the
Company has a present obligation (legal or constructive),
as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will
be required to settle such an obligation.
If the effect of the time value of money is material,
provisions are determined by discounting the expected
future cash flows to net present value using an
appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Unwinding of the discount is recognized in statement of
profit and loss as a finance cost. Provisions are reviewed
at each reporting date and are adjusted to reflect the
current best estimate.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources will
be required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a liability
that cannot be recognised because it cannot be measured
reliably. The Company does not recognize a contingent
liability but discloses its existence in the Balance Sheet.
Contingent assets are not recognised but disclosed in the
financial statements when an inflow of economic benefit
is probable.
The Company has significant capital commitments
in relation to various capital projects which are not
recognised in the balance sheet.
(P) Restoration, rehabilitation and environmental costs
An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
production of a mine or oil fields. Such costs, discounted
to net present value, are provided for and a corresponding
amount is capitalised at the start of each project, as soon
as the obligation to incur such costs arises. These costs
< BACK TO CONTENTS
are charged to the statement of profit and loss over the
life of the operation through the depreciation of the asset
and the unwinding of the discount on the provision. The
cost estimates are reviewed periodically and are adjusted
to reflect known developments which may have an impact
on the cost estimates or life of operations. The cost of
the related asset is adjusted for changes in the provision
due to factors such as updated cost estimates, changes
to lives of operations, new disturbance and revisions
to discount rates. The adjusted cost of the asset is
depreciated prospectively over the lives of the assets to
which they relate. The unwinding of the discount is shown
as finance cost in the statement of profit and loss.
Costs for the restoration of subsequent site damage,
which is caused on an ongoing basis during production,
are provided for at their net present value and charged to
the statement of profit and loss as extraction progresses.
Where the costs of site restoration are not anticipated to
be material, they are expensed as incurred.
(Q) Accounting for foreign currency transactions
The functional currency of the Company is determined
as the currency of the primary economic environment
in which it operates. For all principal businesses of the
Company, the functional currency is Indian rupee (`) with
an exception of oil and gas business operations which has
a US dollar functional currency as that is the currency of
the primary economic environment in which it operates.
The financial statements are presented in Indian rupee
(`).
In the financial statements of the Company, transactions
in currencies other than the functional currency are
translated into the functional currency at the exchange
rates ruling at the date of the transaction. Monetary
assets and liabilities denominated in other currencies
are translated into the functional currency at exchange
rates prevailing on the reporting date. Non-monetary
assets and liabilities denominated in other currencies and
measured at historical cost or fair value are translated at
the exchange rates prevailing on the dates on which such
values were determined.
All exchange differences are included in the statement
of profit and loss except those where the monetary
item designated as an effective hedging instrument
of the currency risk of designated forecasted sales
or purchases, which are recognized in the other
comprehensive income.
Exchange differences which are regarded as an
adjustment to interest costs on foreign currency
borrowings, are capitalized as part of borrowing costs in
qualifying assets.
The statement of profit and loss of oil and gas business
is translated into Indian Rupees (INR) at the average
rates of exchange during the year / exchange rates as
on the date of the transaction. The Balance Sheet is
translated at the exchange rate as at the reporting date.
Exchange difference arising on translation is recognised
in other comprehensive income and would be recycled
to the statement of profit and loss as and when these
operations are disposed off.
The Company had applied paragraph 46A of AS 11
under Previous GAAP. Ind AS 101 gives an option,
which has been exercised by the Company, whereby a
first time adopter can continue its Indian GAAP policy
for accounting for exchange differences arising from
translation of long-term foreign currency monetary items
recognised in the Indian GAAP financial statements for
the period ending immediately before the beginning of
the first Ind AS financial reporting period. Hence, foreign
exchange gain/loss on long-term foreign currency
monetary items recognized upto 31 March 2016 has been
deferred/capitalized. Such exchange differences arising
on translation/settlement of long-term foreign currency
monetary items and pertaining to the acquisition of a
depreciable asset are amortised over the remaining
useful lives of the assets.
Exchange differences arising on translation/ settlement
of long-term foreign currency monetary items, acquired
post 01 April 2016, pertaining to the acquisition of a
depreciable asset are charged to the statement of profit
and loss.
(R) Earnings per share
The Company presents basic and diluted earnings per
share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the period. Diluted EPS is determined by adjusting the
profit or loss attributable to equity shareholders and the
weighted average number of equity shares outstanding
for the effects of all dilutive potential equity shares.
(S) Buyers' Credit/ Suppliers' Credit and vendor
financing
The Company enters into arrangements whereby
banks and financial institutions make direct payments
to suppliers for raw materials and project materials.
The banks and financial institutions are subsequently
repaid by the Company at a later date providing working
capital timing benefits. These are normally settled up to
twelve months (for raw materials) and up to 36 months
(for project and materials). Where these arrangements
are with a maturity of up to twelve months, the
economic substance of the transaction is determined
to be operating in nature and these are recognised as
operational buyers’ credit/ suppliers' credit and disclosed
on the face of the balance sheet (Refer note 2(C)(ii)).
292
293
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Interest expense on these are recognised in the finance
cost. Payments made by banks and financial institutions
to the operating vendors are treated as a non-cash
item and settlement of operational buyer’s credit/
suppliers’ credit by the Company is treated as cash flows
from operating activity reflecting the subtsance of the
payment.
Where such arrangements are with a maturity beyond
twelve months and up to thirty six months, the economic
substance of the transaction is determined to be
financing in nature, and these are presented within
borrowings in the balance sheet. Payments made to
vendors are treated as cash item and disclosed as cash
flows from operating/ investing activity depending on the
nature of the underlying transaction. Settlement of dues
to banks and financial institution are treated as cash flows
from financing activity.
(T) Current and non-current classification
The Company presents assets and liabilities in
the balance sheet based on current / non-current
classification.
An asset is classified as current when it satisfies any of the
following criteria:
it is expected to be realized in, or is intended for sale
or consumption in, the Company’s normal operating
cycle.
it is held primarily for the purpose of being traded;
it is expected to be realized within 12 months after the
reporting date; or
it is cash or cash equivalent unless it is restricted from
being exchanged or used to settle a liability for at least
12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of
the following criteria:
it is expected to be settled in the Company’s normal
operating cycle;
it is held primarily for the purpose of being traded;
it is due to be settled within 12 months after the
reporting date; or
the Company does not have an unconditional right to
defer settlement of the liability for at least 12 months
after the reporting date. Terms of a liability that
could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not
affect its classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non
current only.
294
(U) Borrowing costs
Borrowing cost includes interest expense as per effective
interest rate (EIR) and exchange differences arising
from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.
Borrowing costs directly relating to the acquisition,
construction or production of a qualifying capital project
under construction are capitalised and added to the
project cost during construction until such time that the
assets are substantially ready for their intended use, i.e.,
when they are capable of commercial production.
Where funds are borrowed specifically to finance a
qualifying capital project, the amount capitalised
represents the actual borrowing costs incurred. Where
surplus funds are available out of money borrowed
specifically to finance a qualifying capital project, the
income generated from such short-term investments is
deducted from the total capitalized borrowing cost. If any
specific borrowing remains outstanding after the related
asset is ready for its intended use or sale, that borrowing
then becomes part of general borrowing. Where the
funds used to finance a project form part of general
borrowings, the amount capitalised is calculated using a
weighted average of rates applicable to relevant general
borrowings of the Company during the year.
All other borrowing costs are recognised in the statement
of profit and loss in the year in which they are incurred.
Capitalisation of interest on borrowings related to
construction or development projects is ceased when
substantially all the activities that are necessary to make
the assets ready for their intended use are complete
or when delays occur outside of the normal course of
business.
EIR is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the
financial liability or a shorter period, where appropriate, to
the amortised cost of a financial liability. When calculating
the effective interest rate, the Company estimates the
expected cash flows by considering all the contractual
terms of the financial instrument (for example,
prepayment, extension, call and similar options).
(V) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and
on hand and short-term money market deposits which
have a maturity of three months or less from the date
of acquisition, that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value.
For the purpose of the statement of cash flows, cash and
cash equivalents consist of cash and short-term deposits,
as defined above.
< BACK TO CONTENTS
(W) Equity investment in subsidiaries, associates and
joint ventures
Investments representing equity interest in subsidiaries,
associates and joint ventures are carried at cost. A
subsidiary is an entity that is controlled by the Company.
Control is evidenced where the Company has the power
over the investee or exposed, or has rights, to variable
returns from its involvement with the investee and has
the ability to affect those returns through its power over
the investee. Power is demonstrated through existing
rights that give the ability to direct relevant activities,
which significantly affect the entity returns. An associate
is an entity over which the Company has significant
influence. Significant influence is the power to participate
in the financial and operating policy decisions of the
investee, but is not control or joint control over those
policies.
Joint Arrangements
A Joint arrangement is an arrangement of which two
or more parties have joint control. Joint control is
considered when there is contractually agreed sharing
of control of an arrangement, which exists only when
decisions about the relevant activities require the
unanimous consent of the parties sharing control.
Investments in joint arrangements are classified as
either joint operations or joint venture. The classification
depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint
arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations
for the liabilities, relating to the arrangement. A joint
venture is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the
net assets of the arrangement.
Joint Operations
The Company has joint operations within its Oil and gas
segment and participates in several unincorporated joint
operations which involve the joint control of assets used
in oil and gas exploration and producing activities. The
Company accounts for its share of assets and income
and expenditure of joint operations in which it holds an
interest. Liabilities in unincorporated joint ventures,
where the Company is the operator, is accounted for at
gross values (including share of other partners) with a
corresponding receivable from the venture partners.
These have been included in the financial statements
under the appropriate headings. [Details of joint
operations are set out in note 39(b)].
and after the business combination and the control
is not transitory. The transactions between entities
under common control are specifically covered by Ind
AS 103. Such transactions are accounted for using the
pooling-of-interest method. The assets and liabilities
of the acquired entity are recognised at their carrying
amounts recorded in the parent entity’s consolidated
financial statements with the exception of certain
income tax and deferred tax assets. No adjustments
are made to reflect fair values, or recognise any new
assets or liabilities. The only adjustments that are made
are to harmonise accounting policies. The components
of equity of the acquired companies are added to the
same components within the Company's equity. The
difference, if any, between the amounts recorded as
share capital issued plus any additional consideration
in the form of cash or other assets and the amount of
share capital of the transferor is transferred to capital
reserve. The company's shares issued in consideration
for the acquired companies are recognised at face value
from the moment the acquired companies are included in
these financial statements and the financial statements
of the commonly controlled entities would be combined,
retrospectively, as if the transaction had occurred at the
beginning of the earliest reporting period presented.
However, the prior year comparative information is only
adjusted for periods during which entities were under
common control.
(Y) Exceptional items
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information allows
an understanding of the underlying performance of the
business in the year, so as to facilitate comparison with
prior periods. Also tax charges related to exceptional
items and certain one-time tax effects are considered
exceptional. Such items are material by nature or amount
to the year’s result and require separate disclosure in
accordance with Ind AS.
3(b) APPLICATION OF NEW AND AMENDED
STANDARDS
(A) The Company has adopted, with effect from 01
April 2020, the following new and revised standards
and interpretations. Their adoption has not had any
significant impact on the amounts reported in the
financial statements.
(X) Common Control transactions
A business combination involving entities or businesses
under common control is a business combination in which
all of the combining entities or businesses are ultimately
controlled by the same party or parties both before
1.
2.
Amendments to Ind AS 103 regarding definition of a
Business
Amendments to Ind AS 107 and 109 regarding
Interest Rate Benchmark Reform
295
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | 3.
4.
Amendments to Ind AS 1 and Ind AS 8 regarding
definition of Material
Amendments to Ind AS 116 regarding COVID-19
related rent concessions
Other Amendments
A number of other minor amendments to existing
standards also became effective on 01 April 2020 and
have been adopted by the Company. The adoption of
these new accounting pronouncements did not have a
material impact on the accounting policies, methods of
computation or presentation applied by the Company.
(B) Standards notified but not yet effective
There are no new standards that are notified, but not yet
effective, upto the date of issuance of the Company’s
financial statements.
3(c) SIGNIFICANT ACCOUNTING ESTIMATES AND
JUDGEMENTS
The preparation of financial statements in conformity
with Ind AS requires management to make judgements,
estimates and assumptions that affect the application
of accounting policies and the reported amounts of
assets, liabilities, income, expenses and disclosures
of contingent assets and liabilities at the date of these
financial statements and the reported amounts of
revenues and expenses for the years presented. These
judgments and estimates are based on management’s
best knowledge of the relevant facts and circumstances,
having regard to previous experience, but actual results
may differ materially from the amounts included in the
financial statements.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and future periods affected.
The information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognized in the financial statements
are as given below:
Impact of COVID-19
(A) Significant Estimates
(i)
The outbreak of novel Coronavirus (COVID-19) pandemic
globally and in India and the consequent lockdown
restrictions imposed by national governments is causing
significant disturbance and slowdown of economic
activity across the globe. The commodity prices including
oil have seen significant volatility with downward price
pressures due to major demand centers affected by
lockdown.
The Company is in the business of metals and mining,
Oil & gas and generation of power which are considered
as either essential goods and services or were generally
allowed to continue to carry out the operations with
adequate safety measures. The Company has taken
proactive measures to comply with various regulations/
guidelines issued by the Government and local bodies to
ensure safety of its workforce and the society in general.
The Company has considered possible effects of
Covid-19 on the recoverability of its investments,
property, plant and equipment (PPE), inventories, loans
and receivables, etc in accordance with Ind AS. The
Company has considered forecast consensus, industry
reports, economic indicators and general business
conditions to make an assessment of the implications
of the Pandemic. The Company has also performed
sensitivity analysis on the assumptions used basis the
internal and external information/ indicators of future
economic condition. Based on the assessment, the
Company had recorded necessary adjustments, including
impairment to the extent the carrying amount exceeds
the recoverable amount and has disclosed the same
as exceptional item during the previous year ended 31
March 2020. No such impairments were identified during
the current year. The actual effects of COVID-19 could
be different from what is presently assessed and would
be known only in due course of time, however no further
adjustments are considered necessary at this stage.
(ii) Oil and Gas reserves
Significant technical and commercial judgements are
required to determine the Company’s estimated oil
and natural gas reserves. Reserves considered for
computing depletion are proved reserves for acquisition
costs and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. Reserves
for this purpose are considered on working interest basis
which are reassessed atleast annually. Details of such
reserves are given in note 41.
Changes in reserves as a result of change in management
assumptions could impact the depreciation rates and the
carrying value of assets (refer note 5).
(iii) Carrying value of exploration and evaluation
assets
Exploration assets are assessed by comparing the
carrying value to higher of fair value less cost of
disposal or value in use if impairment indicators, as
contained in Ind AS 106, exists. Change to the valuation
of exploration assets is an area of judgement. Further
details on the Company’s accounting policies on this
are set out in accounting policy above. The amounts
< BACK TO CONTENTS
for exploration and evaluation assets represent active
exploration projects. These amounts will be written
off to the statement of profit and loss as exploration
costs unless commercial reserves are established or the
determination process is not completed and there are
no indications of impairment. The outcome of ongoing
exploration, and therefore whether the carrying value
of exploration and evaluation assets will ultimately be
recovered, is inherently uncertain.
Details of carrying values are disclosed in note 5.
(iv) Carrying value of developing/producing oil and gas
assets
Management performs impairment tests on the
Company’s developing/producing oil and gas assets
where indicators of impairment or impairment reversal
of previously recorded impairment are identified in
accordance with Ind AS 36.
In the current year, the management has reviewed
the key assumptions i.e. future production, oil prices,
discount to price, Production sharing contract (PSC)
life, discount rates, etc. for all of its oil and gas assets.
Based on analysis of events that have occurred since
then, there did not exist any indication that the assets
may be impaired or previously recorded impairment
charge may reverse. Hence, detailed impairment
analysis has not been conducted in the current financial
year. However during the year ended 31 March 2020,
management had performed impairment tests on the
Company’s developing/producing oil and gas assets and
the impairment assessments were based on a range of
estimates and assumptions, including:
Estimates/
assumptions
Future
production
Commodity
prices
Basis
proved and probable reserves, production
facilities, resource estimates and expansion
projects
management’s best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
Discount to price management’s best estimate based on
historical prevailing discount and updated
sales contracts
Extension of PSC granted till 2030 on the expected
Discount rates
commercial terms (Refer note 3(c)(A)(viii)
cost of capital risk-adjusted for the risk
specific to the asset/ CGU
Details of carrying values are disclosed in note 5.
proved & developed reserves. The estimate of reserves
is subject to assumptions relating to life of the mine and
may change when new information becomes available.
Changes in reserves as a result of factors such as
production cost, recovery rates, grade of reserves or
commodity prices could thus impact the carrying values
of mining properties and leases and environmental and
restoration provisions.
Management performs impairment tests when there is an
indication of impairment. The impairment assessments
are based on a range of estimates and assumptions,
including:
Estimates/
assumptions
Future
production
Commodity
prices
Basis
proved and probable reserves, resource
estimates (with an appropriate conversion
factor) considering the expected permitted
mining volumes and, in certain cases,
expansion projects
management’s best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
Exchange rates management best estimate benchmarked
Discount rates
with external sources of information
cost of capital risk-adjusted for the risk
specific to the asset/ CGU
There is no impairment recognised during the year. For
the year ended 31 March 2020, details of impairment
charge and the assumptions used and carrying value are
disclosed in note 32 and 5 respectively.
(vi) Recoverability of deferred tax and other income
tax assets
The Company has carry forward tax losses, unabsorbed
depreciation and MAT credit that are available for offset
against future taxable profit. Deferred tax assets are
recognised only to the extent that it is probable that
taxable profit will be available against which the unused
tax losses or tax credits can be utilized. This involves an
assessment of when those assets are likely to reverse,
and a judgement as to whether or not there will be
sufficient taxable profits available to offset the assets.
This requires assumptions regarding future profitability,
which is inherently uncertain. To the extent assumptions
regarding future profitability change, there can be an
increase or decrease in the amounts recognised in
respect of deferred tax assets and consequential impact
in the statement of profit and loss.
(v) Mining properties and leases
The carrying value of mining property and leases is
arrived at by depreciating the assets over the life of
the mine using the unit of production method based on
The total deferred tax assets recognised in these
financial statement (Refer note 33) includes MAT credit
entitlements of `3,701 Crore (31 March 2020: `3,600
Crore), of which 340 Crore is expected to be utilised in the
296
297
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | fourteenth year (FY 19-20: `3,600 Crore was expected to
be utilised in fourteenth and fifteenth year), fifteen years
being the maximum permissible time period to utilise the
MAT credits.
Additionally, the Company has tax receivables on account
of refund arising on account of past amalgamation and
relating to various tax disputes. The recoverability of
these receivables involve application of judgement
as to the ultimate outcome of the tax assessment
and litigations. This pertains to the application of
the legislation, which in certain cases is based upon
management’s interpretation of country specific tax
law, in particular India, and the likelihood of settlement.
Management uses in-house and external legal
professionals to make informed decision.
(vii) Copper operations in Tamil Nadu, India
In an appeal filed by the Company against the closure
order of the Tuticorin Copper smelter by Tamil Nadu
Pollution Control Board (“TNPCB”), the appellate
authority National Green Tribunal (“NGT”) passed
an interim order on 31 May 2013 allowing the copper
smelter to recommence operations and appointed
an Expert Committee to submit a report on the
plant operations. Post the interim order, the plant
recommenced operations on 23 June 2013. Based on
Expert Committee’s report on the operations of the plant
stating that the plant’s emission were within prescribed
standards and based on this report, NGT ruled on 08
August 2013 that the Copper smelter could continue its
operations and recommendations made by the Expert
Committee be implemented in a time bound manner.
The Group has implemented all of the recommendations.
TNPCB has filed an appeal against the order of the NGT
before the Supreme Court of India.
In the meanwhile, the application for renewal of Consent
to Operate (CTO) for existing copper smelter, required as
per procedure established by law was rejected by TNPCB
in April 2018. Vedanta Limited has filed an appeal before
the TNPCB Appellate Authority challenging the Rejection
Order. During the pendency of the appeal, there
were protests by a section of local community raising
environmental concerns and TNPCB vide its order dated
23 May 2018 ordered closure of existing copper smelter
plant with immediate effect. Further, the Government
of Tamil Nadu, issued orders dated 28 May 2018 with
a direction to seal the existing copper smelter plant
permanently. The Company believes these actions were
not taken in accordance with the procedure prescribed
under applicable laws. Subsequently, the Directorate of
Industrial Safety and Health passed orders dated 30 May
2018, directing the immediate suspension and revocation
of the Factory License and the Registration Certificate for
the existing smelter plant.
298
The Company has appealed this before the National
Green Tribunal (NGT). NGT vide its order on December
15, 2018 has set aside the impugned orders and directed
the TNPCB to pass fresh orders for renewal of consent
and authorization to handle hazardous substances,
subject to appropriate conditions for protection of
environment in accordance with law.
The State of Tamil Nadu and TNPCB approached
Supreme Court in Civil Appeals on 02 January 2019
challenging the judgement of NGT dated 15 December
2018 and the previously passed judgement of NGT dated
08 August 2013. The Supreme Court vide its judgement
dated 18 February 2019 set aside the judgements of NGT
dated 15 December 2018 and 08 August 2013 solely on
the basis of maintainability and directed the Company to
file an appeal in High court.
The Company has filed a writ petition before Madras High
Court challenging the various orders passed against
the Company in 2018 and 2013. On 18 August 2020, the
Madras High Court delivered the judgement wherein it
dismissed all the Writ Petitions filed by the Company.
The Company has approached the Supreme Court and
challenged the said High Court order by way of a Special
Leave Petition (SLP) to Appeal and also filed an interim
relief for care & maintenance of the plant. The matter
was then listed on 02 December 2020 before Supreme
Court Bench. The Bench after having heard both the sides
concluded that at this stage the interim relief in terms
of trial run could not be allowed. Further, considering
the voluminous nature of documents and pleadings, the
matter shall be finally heard on merits. The matter was
again mentioned before the bench on 17 March 2021,
wherein the matter was posted for hearing on 17 August
2021.
However, subsequent to the year end, the Company
approached the Supreme Court offering to supply
medical oxygen from the said facility in view of prevailing
COVID-19 situation, which was allowed by the Supreme
Court, under supervision of a committee constituted by
the Government of Tamil Nadu.
As per the Company’s assessment, it is in compliance
with the applicable regulations and expects to get the
necessary approvals in relation to the existing operations.
The Company has carried out an impairment analysis
for existing plant assets during the year ended 31 March
2021 considering the key variables and concluded that
there exists no impairment. The Company has done an
additional sensitivity analysis with commencement of
operations of the existing plant w.e.f 01 April 2024 and
noted that the recoverable amount of the assets would
still be in excess of their carrying values.
< BACK TO CONTENTS
The carrying value of the assets as at 31 March 2020 is
`2,328 Crore and 31 March 2021 is `2,144 Crore.
Expansion Project:
Separately, the Company has filed a fresh application for
renewal of the Environmental Clearance for the proposed
Copper Smelter Plant 2 (Expansion Project) dated March
12, 2018 before the Expert Appraisal Committee of the
Ministry of Environment, Forests and Climate Change
(MoEFCC) wherein a sub-committee was directed to visit
the Expansion Project site prior to prescribing the Terms
of Reference.
In the meantime, the Madurai Bench of the High Court of
Madras in a Public Interest Litigation held vide its order
dated 23 May 2018 that the application for renewal of the
Environmental Clearance for the Expansion Project shall
be processed after a mandatory public hearing and in the
interim, ordered the Company to cease construction and
all other activities on site for the proposed Expansion
Project with immediate effect. MoEFCC has delisted
the expansion project since the matter is sub-judice.
Separately, SIPCOT vide its letter dated 29 May 2018,
cancelled 342.22 acres of the land allotted for the
proposed Expansion Project. Further, the TNPCB issued
orders on 07 June 2018 directing the withdrawal of the
Consent to Establish (CTE) which was valid till 31 March
2023.
The Company has approached Madras High Court by
way of writ petition challenging the cancellation of lease
deeds by SIPCOT pursuant to which an interim stay
has been granted. The Company has also filed Appeals
before the TNPCB Appellate Authority challenging
withdrawal of CTE by the TNPCB, the matter is pending
for adjudication. Considering the delay in existing plant
matter and accordingly delay in getting the required
approval for Expansion Project, management considered
to make provision for impairment for expansion project
basis fair value less cost of disposal and accordingly
made impairment provision of `669 Crore in March 2020.
During the current period, there are no updates in the
expansion matter and impairment provision of `669 Crore
is adequate and the net carrying value of `97 crore as at
31 March 2021 approximates its recoverable value.
Impairment recognised during the year ended 31 March
2020
For the Expansion Project, the project activities are
on halt since May 2018. Further, the project EC for the
Expansion Project got expired on 31 December 2018 and
fresh application is filed before the competent authority.
However, the process will start only after reopening
of the existing plant and after obtaining all statutory
approvals, the timing of which is uncertain.
Keeping in view the above factors and the fact that value
in use cannot be reasonably ascertained, the Company
has carried out recoverability assessment of the items of
property, plant and equipment, capital work in progress
(CWIP) and capital advances. Based on the realisable value
estimate of `288 Crore, the Company had recognised an
impairment of `669 Crore (comprising of CWIP balances
of `435 Crore, capital advances of `196 Crore and other
assets of `38 Crore) during the year ended March 21,
2020.
Property, plant and equipment of `1,337 Crore and
inventories of `284 Crore, pertaining to existing and
expansion plant, could not be physically verified, anytime
during the year, as the access to the plant is presently
restricted. However, since operations are suspended and
access to the plant restricted, any difference between
book and physical quantities is unlikely to be material.
(viii) PSC Extension
Rajasthan Block
The Company operates an oil and gas production facility
in Rajasthan under a Production Sharing Contract
(“PSC”). The management is of the opinion that the
Company is eligible for automatic extension of the PSC
for Rajasthan ("RJ") block on same terms w.e.f. 15 May
2020, while Government of India ("GoI") in October 2018,
accorded its approval for extension of the PSC, under the
Pre-NELP Extension policy as per notification dated 07
April 2017 (“Pre-NELP Policy”), for RJ block by a period
of 10 years, w.e.f. 15 May 2020. As per the said policy and
extension letter, the Company is required to comply with
certain conditions and pay an additional 10% profit oil to
GoI. The Company had challenged the applicability of Pre
NELP Policy to the RJ block. The Division Bench of the
Delhi High Court in March 2021 set aside the single judge
order of May 2018 which allowed automatic extension of
PSC. The Company is studying the order and all available
legal remedies are being evaluated for further action as
appropriate.
One of the conditions for extension of PSC relates to
notification of certain audit exceptions raised for FY
16-17 as per PSC provisions and provides for payment of
amounts, if such audit exceptions result into any creation
of liability.
The Directorate General of Hydrocarbons (“DGH”)
in May 2018 raised a demand on the Company and
its subsidiary for the period up to 31 March 2017 for
Government’s additional share of Profit oil based on its
computation of disallowance of costs incurred in excess
of the initially approved Field Development Plan (“FDP”)
of the pipeline project for `1,477 Crore (US$202 million)
and retrospective re-allocation of certain common
299
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | costs between Development Areas (“DAs”) of RJ block
aggregating to `2,669 Crore (US$364 million). The DGH
vide its letter dated 12 May 2020, reiterated its demand
only with respect to the retrospective re-allocation of
certain common costs between DAs of the RJ block of
`2,669 Crore (US$364 million towards contractor share
for the period upto 31 March 2017. This amount was
subsequently revised to `3,360 Crore (US$458 million) till
March 2018 vide DGH letter dated 24 December 2020.
The Company in January 2020 received notifications
from the DGH on audit exceptions arising out of its audit
for the FY 2017-18, which comprises the consequential
effects on profit oil due to the aforesaid matters and
certain new matters on cost allowability plus interest
aggregating to US$645 million, representing share of
the Company and its subsidiary, CEHL (“the Claimants”),
which have been suitably responded to by the Company.
The Company believes that it has sufficient as well as
reasonable basis pursuant to the PSC provisions and
related approvals, supported by legal advice, for having
claimed such costs and for allocating common costs
between different DAs. In the Company’s opinion, these
computations of the aforesaid demand / audit exceptions
are not appropriate, and the accounting adjustments
sought for issues pertaining to Year 2007 and onwards
are based on assumptions that are not in consonance
with the approvals already in place. The Company’s view
is also supported by independent legal opinion and the
Company has been following the process set out in PSC
to resolve these aforesaid matters. The Company has
also invoked the PSC process for resolution of disputed
exceptions and has issued notice for arbitration and the
tribunal stands constituted. Further, on 23 September
2020, the GoI had filed an application for interim relief
before Delhi High Court seeking payment of all disputed
dues. This matter is now scheduled for hearing on 20 May
2021.
Also, on Vedanta’s application under section 17 of the
Arbitration and Conciliation Act, 1996, the tribunal in
December 2020 ordered that GoI should not take any
action to enforce any of the amounts at issue in this
arbitration against the Claimants during the arbitral
period. The GoI has challenged the said order before the
Delhi High Court under the said Act. This matter is also
scheduled for hearing on 20 May 2021.
In management’s view, the above mentioned condition
on demand raised by the DGH for additional petroleum
linked to PSC extension is untenable and has not resulted
in creation of any liability and cannot be a ground for
non-extension. In addition, all necessary procedures
prescribed in the PSC including invocation of arbitration,
in respect of the stated audit observation have also been
fulfilled. Accordingly, the PSC extension approval granted
vide DGH letter dated 26 October 2018 upholds with
all conditions addressed and no material liability would
devolve upon the Group.
Simultaneously, the Company is also pursuing with the
GoI for executing the RJ PSC addendum at the earliest.
In view of extenuating circumstances surrounding
COVID-19 and pending signing of the PSC addendum for
extension after complying with all stipulated conditions,
the GoI has been granting interim permission to the
Company to continue Petroleum operations in the RJ
block. The latest permission is valid upto 31 July 2021 or
signing of the PSC addendum, whichever is earlier.
Ravva Block
The Government of India (GoI) has granted its approval
for a ten-year extension of PSC for Ravva Block with
effect from 28 October 2019, in terms of the provision of
the “Policy on the Grant of the extension to Production
Sharing Contract Signed by Government awarding
small, medium-sized and discovered field to private joint
ventures” dated March 28, 2016. The PSC addendum
recording this extension has been executed by all parties.
The Ravva Extension Policy, amongst others, provides for
an increased share of profit petroleum of 10% for the GoI
during the extended term of the Ravva PSC and payment
of royalty and cess as per prevailing rate in accordance
with the PNG Rules, 1959 and OIDB Act. Under the
Ravva PSC, –the Company’s oil and gas business is
entitled to recover 100% of cost of production and
development from crude oil and natural gas sales before
any profit is allocated among the parties. Cost recovery
for exploration cost during extension period shall be
governed as per the provision of Office Memorandum
2013, 2019 issued by MoPNG on exploration in mining
lease area post expiry of the exploration period.
(ix)
Impact of Taxation Laws (Amendment) Act, 2019
Pursuant to the introduction of Section 115BAA of the
Income Tax Act, 1961 which is effective 01 April 2019,
companies in India have the option to pay corporate
income tax at the rate of 22% plus applicable surcharge
and cess as against the earlier rate of 30% plus applicable
surcharge and cess, subject to certain conditions
like, the company has to forego all benefits like tax
holidays, brought forward losses generated through
tax incentives/additional depreciation and outstanding
MAT credit. Considering all the provisions under Section
115BAA and based on the expected timing of exercising of
the option under Section 115BAA, the Company has re-
measured its deferred tax balances as at 31 March 2021.
This computation requires assumptions regarding future
profitability, which is inherently uncertain. To the extent
assumptions regarding future profitability change, there
can be increase or decrease in the amounts recognised
(Refer note 33).
< BACK TO CONTENTS
(x) Assessment of impairment of assets at Aluminium
division
During year ended March 31,2020, considering lower
sales realisation, an impairment trigger was identified in
the aluminium division of the Company. The impairment
assessments are based on a range of estimates and
assumptions, including:
Estimates/
assumptions
Future
production
Commodity
prices
Basis
Production facilities and expansion projects
management’s best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
Discount to price management’s best estimate based on
Discount rates
historical prevailing discount
cost of capital risk-adjusted for the risk
specific to the asset/ CGU
During the previous year, the Company had carried out
an impairment analysis, based on value in use approach,
considering the key variables and concluded that there
existed no impairment. The Company had carried
out sensitivity analysis on key assumptions including
commodity price, discount rate and delay in expansion
of refinery. Based on sensitivity analysis, the recoverable
amount was expected to exceed the carrying value
as at 31 March 2020 of `36,992 Crore. No negative
developments have occurred since the previous year,
while the commodity price have increased. Accordingly,
it is not expected that the carrying amount would exceed
the recoverable amount and hence the recoverable value
for the year ended 31 March 2021 was not re-determined.
(xi) Going Concern
Considering the uncertainties caused due to Covid-19,
the Company prepared its cash flow forecasts under
various scenarios and has performed additional
sensitivities on certain key assumptions. Based on such
an analysis and assessment of its ability to raise additional
capital, the Company continues to prepare its financial
statements on a going concern basis.
(B) Significant Judgement
(i) Contingencies
In the normal course of business, contingent liabilities
may arise from litigation, taxation and other claims
against the Company. A provision is recognised when
the Company has a present obligation as a result of
past events and it is probable that the Company will be
required to settle that obligation.
Where it is management’s assessment that the outcome
cannot be reliably quantified or is uncertain, the claims
are disclosed as contingent liabilities unless the likelihood
of an adverse outcome is remote. Such liabilities are
disclosed in the notes but are not provided for in the
financial statements.
When considering the classification of legal or tax
cases as probable, possible or remote, there is
judgement involved. This pertains to the application
of the legislation, which in certain cases is based upon
management’s interpretation of country specific
applicable law, in particular India, and the likelihood of
settlement. Management uses in-house and external
legal professionals to make informed decision.
Although there can be no assurance regarding the final
outcome of the legal proceedings, the Company does not
expect them to have a materially adverse impact on the
Company’s financial position or profitability. These are
set out in Note 36.
(ii) Revenue recognition and receivable recovery in
relation to the power division
In certain cases, the Company’s power customers
are disputing various contractual provisions of Power
Purchase Agreements (PPA). Significant judgement is
required in both assessing the tariff to be charged under
the PPA in accordance with Ind AS 115 and to assess the
recoverability of withheld revenue currently accounted
for as receivables.
In assessing this critical judgment, management
considered favourable external legal opinions that
the Company has obtained in relation to the claims. In
addition, the fact that the contracts are with government
owned companies implies the credit risk is low [refer note
7 (c)].
(iii) Exceptional items:
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information allows
an understanding of the underlying performance of the
business in the year, so as to facilitate comparison with
prior periods. Also tax charges related to exceptional
items and certain one-time tax effects are considered
Exceptional. Such items are material by nature or amount
to the year’s result and require separate disclosure in
accordance with Ind AS.
300
301
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
4
SEGMENT INFORMATION
For the year ended 31 March 2021
A) Description of segment and principal activities
The Company is a diversified natural resource company
engaged in exploring, extracting and processing minerals
and oil and gas. The Company produces oil and gas,
aluminium, copper, iron ore and power. The Company has
five reportable segments: oil and gas, aluminium, copper,
iron ore and power. The management of the Company is
organized by its main products: oil and gas, aluminium,
copper, iron ore and power. Each of the reportable
segments derives its revenues from these main products
and hence these have been identified as reportable
segments by the Company’s Chief Operating Decision
Maker (“CODM”).
Segment Revenue, Results, Assets and Liabilities
include the respective amounts identifiable to each of
the segments and amount allocated on a reasonable
basis. Unallocated expenditure consist of common
expenditure incurred for all the segments and expenses
incurred at corporate level. The assets and liabilities that
cannot be allocated between the segments are shown as
unallocated assets and unallocated liabilities respectively.
The accounting policies of the reportable segments are
the same as the Company’s accounting policies described
in Note 3. Earnings before Interest, Tax and Depreciation
& Amortisation (EBITDA) are evaluated regularly by
the CODM, in deciding how to allocate resources and
in assessing performance. The operating segments
reported are the segments of the Company for which
separate financial information is available.The Company’s
financing (including finance costs and finance income) and
income taxes are reviewed on an overall basis and are not
allocated to operating segments.
Pricing between operating segments are on an arm’s
length basis in a manner similar to transactions with third
parties.
The following table presents revenue and profit
information and certain assets and liabilities information
regarding the Company’s business segments as at and
for the year ended 31 March 2021 and 31 March 2020
respectively.
Oil and Gas
Aluminium
Copper
Iron Ore
Power Eliminations
Total
Business Segments
(` in crores)
Particulars
Revenue
External revenue
Inter segment revenue
Segment revenue
Results
EBITDA a
Depreciation, depletion and amortisation
expense
Other income b
Segment Results
Less: Unallocated expenses
Less: Finance costs
Add: Other income (excluding exchange
difference and deferred grant)
Add: Net exceptional loss
Net profit before tax
Other information
Segment Assets
Financial asset investments
Deferred tax assets
Income tax assets (net of provisions)
Cash & cash equivalents (including other
bank balances & bank deposits)
Others
Total Assets
Segment Liabilities
Borrowings
Income tax liabilities (net)
Others
Total Liabilities
Capital Expenditure c
Capital work-in-progress written off
4,086
-
4,086
1,743
708
-
1,035
20,162
-
20,162
5,471
1,389
56
4,138
7,623
-
7,623
(105)
205
2
(308)
4,529
-
4,529
1,735
89
6
1,652
720
-
720
(55)
128
11
(172)
-
-
-
-
-
-
-
13,161
42,303
5,289
2,548
3,161
7,403
13,508
3,895
2,301
210
1,082
-
1,517
(181)
21
-
111
-
-
-
a) EBITDA is a non-GAAP measure
b) Amorisation of duty benefits relating to assets recognised as government grant.
c) Total Capital expenditure includes capital expenditure of `2 Crore not allocable to any segment.
37,120
-
37,120
8,789
2,519
75
6,345
79
3,193
10,823
(232)
13,664
66,462
62,903
333
1,787
4,395
1,851
137,731
27,317
32,166
46
1,412
60,941
2,733
(181)
303
The determination as to which items should be disclosed
separately requires a degree of judgement. The details of
exceptional items are set out in note 32.
3(D) BUSINESS COMBINATION AND OTHERS:
A. Ferro Alloys Corporation Limited
On 21 September 2020, the Company acquired control
over Ferro Alloys Corporation Limited ("FACOR"). FACOR
was admitted under Corporate insolvency resolution
process in terms of the Insolvency and Bankruptcy
Code, 2016 of India. The National Company Law Tribunal
(NCLT) vide its order dated 30 January 2020 approved
the resolution plan for acquiring controlling stake in
FACOR. Pursuant to the approved resolution plan, FACOR
has become a wholly owned subsidiary of the Company.
FACOR holds 90% equity in its subsidiary, Facor Power
Limited (FPL). The consideration paid for the acquisition
of FACOR by the Company includes cash of `56 Crore
(equity of `34 Crore and inter-corporate loan of `22
Crore) and zero coupon, secured and unlisted Non-
Convertible Debentures of aggregate face value of `287
Crore to the Financial Creditors payable equally over 4
years commencing March 2021.
FACOR is in the business of producing Ferro Alloys and
owns a Ferro Chrome plant with capacity of 72,000 TPA,
two operational Chrome mines and 100 MW of Captive
Power Plant through its subsidiary, FACOR Power Limited
(FPL). The acquisition will complement the Group’s
existing steel business as the vertical integration of ferro
manufacturing capabilities has the potential to generate
significant efficiencies.
B. Global coke - Acquisition of global coke plant
On 28 July 2019, the Company acquired Sindhudurg plant
of Global Coke Limited which was under liquidation as
per the Insolvency and Bankruptcy Code 2016 (including
all amendments for the time being in force) for a cash
consideration of `33 Crore. The assets acquired mainly
included Land, Building and Plant & Machinery of similar
value as the cash consideration and hence no goodwill
was recorded. The acquisition complements backward
integration opportunity for the Company’s existing pig
iron division and also increase Company’s footprint in
met coke market in south western part of India. Detailed
disclosure of fair value of the identifiable assets and
liabilities of Sindhudurg plant has not been provided as
the same is not material.
Acquisition costs related to the same were not material.
302
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
For the year ended 31 March 2020
Particulars
Revenue
External revenue
Inter segment revenue
Segment revenue
Results
EBITDA a
Depreciation, depletion and amortisation
expense
Other income b
Segment Results
Less: Unallocated expenses
Less: Finance costs
Add: Other income (excluding exchange
difference and deferred grant)
Add: Net exceptional loss
Net loss before tax
Other information
Segment Assets
Financial asset investments
Deferred tax asset
Income tax assets (net of provisions)
Cash & cash equivalents (including other
bank balances & bank deposits)
Others
Total Assets
Segment Liabilities
Borrowings
Income tax liabilities (net)
Others
Total Liabilities
Capital Expenditure c
Impairment charge - net / provision d
Oil and Gas
Aluminium
Copper
Iron Ore
Power Eliminations
Total
Business Segments
(` in crores)
6,756
-
6,756
3,884
1,478
-
2,406
19,022
-
19,022
1,539
1,356
54
237
5,972
-
5,972
(234)
200
2
(432)
3,461
2
3,463
925
101
6
830
206
-
206
(118)
129
12
(235)
-
(2)
-
-
-
-
10,900
42,792
5,865
2,549
3,342
-
8,501
15,369
4,155
1,098
156
2,627
8,273
1,182
-
61
669
102
-
5
-
-
-
35,417
35,417
5,996
3,264
74
2,806
122
3,328
2,749
(12,568)
(10,463)
65,448
62,905
3,464
1,682
2,910
3,041
139,450
29,279
38,937
46
1,293
69,555
3,980
12,335
a)
b)
c)
d)
EBITDA is a non-GAAP measure
Amorisation of duty benefits relating to assets recognised as government grant.
Total Capital expenditure includes capital expenditure of `3 Crore not allocable to any segment.
Total of Impairment charge - net / provision includes net impairment charge on investment in subsidiaries of `3,393 Crore not allocable
to any segment (Refer note 32).
< BACK TO CONTENTS
B) Geographical segment analysis
The following table provides an analysis of the Company’s sales by region in which the customer is located, irrespective
of the origin of the goods.
Geographical Segments
Revenue by geographical segment
India
China
UAE
Malaysia
Others
Total
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
19,328
3,483
49
4,209
10,051
37,120
19,013
839
24
5,341
10,200
35,417
The following is an analysis of the carrying amount of non-current assets, excluding deferred tax assets and financial
assets, analysed by the geographical area in which the assets are located:
Carrying Amount of Segment Assets
India
Total
As at
31 March 2021
53,108
53,108
(` in crores)
As at
31 March 2020
53,158
53,158
Information about major customers
C)
Revenue from one customer amounted to `4,932 Crore (31 March 2020: one customer, `3,589 Crore), arising from sales
made in the Aluminium and Copper segment. No other customer contributed to more than 10% of revenues.
D) Disaggregation of revenue
Below table summarises the disaggregated revenue from contract with customers:
Particulars
Oil
Gas
Aluminium products
Copper Cathode
Iron Ore
Metallurgical coke
Pig Iron
Power
Others
Revenue from contracts with customers*
Gains/(losses) from provisionally priced contracts under Ind AS 109
JV partner's share of the exploration costs approved under the OM (Refer note 26(b))
Total Revenue
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
3,491
385
19,513
7,084
2,173
297
1,882
720
1,315
36,859
261
-
37,120
5,853
447
18,145
4,291
1,482
66
1,845
205
2,791
35,125
(346)
638
35,417
*includes revenues from sale of services aggregating to `101 Crore (FY 2019-20: `431 Crore) which is recorded over a period of time and the
balance revenue is recognised at a point in time.
304
305
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
-
-
8
9
2
3
,
)
8
8
(
6
4
7
8
,
2
7
1
5
,
6
2
0
,
1
8
1
3
5
2
,
)
4
4
1
(
1
8
1
-
)
5
5
4
1
(
,
9
3
1
,
2
8
3
0
7
6
5
,
3
7
1
9
4
,
3
2
9
,
8
4
Right of Use assets
)
s
e
r
o
r
c
n
i
`
(
s
s
e
r
g
o
r
p
-
n
i
-
k
r
o
w
l
a
t
i
p
a
c
g
n
i
d
u
l
c
n
i
l
a
t
o
T
n
o
i
t
a
r
o
l
p
x
E
d
n
a
e
l
b
i
g
n
a
t
n
i
r
e
d
n
u
s
t
e
s
s
a
t
n
e
m
p
o
l
e
v
e
d
3
3
8
0
4
4
2
2
4
,
)
1
(
)
0
5
3
(
)
3
2
5
(
7
0
8
5
,
,
1
0
6
0
2
1
5
7
6
2
,
)
1
(
)
9
1
2
(
)
6
(
9
9
1
,
0
3
1
)
6
8
5
1
(
,
2
6
0
,
1
3
1
8
9
8
3
6
,
7
9
4
6
0
0
1
1
,
5
9
3
2
5
,
5
9
5
8
3
,
6
2
7
9
5
0
1
,
9
9
4
2
,
2
3
1
t
n
e
m
p
o
l
e
v
e
d
I
)
P
W
C
(
n
o
i
t
a
r
o
l
p
x
E
l
a
t
i
p
a
C
e
l
b
i
g
n
a
t
n
i
-
n
i
-
k
r
o
w
r
e
d
n
u
s
t
e
s
s
a
s
s
e
r
g
o
r
p
l
a
t
o
T
f
o
t
h
g
i
R
e
c
ffi
O
s
t
e
s
s
a
e
s
U
t
n
e
m
p
i
u
q
e
s
e
l
c
i
h
e
V
e
r
u
t
i
n
r
u
F
s
e
r
u
t
x
fi
d
n
a
s
a
g
&
l
i
O
s
e
i
t
i
l
i
c
a
f
g
n
i
c
u
d
o
r
p
g
n
i
i
n
M
d
n
a
t
n
a
l
P
y
t
r
e
p
o
r
p
t
n
e
m
p
i
u
q
e
s
g
n
i
d
l
i
u
B
d
n
a
L
d
l
o
h
e
e
r
F
-
9
-
-
1
5
3
0
8
0
2
,
)
1
(
0
9
1
6
7
5
9
2
6
,
2
4
-
)
6
(
)
9
5
(
4
4
1
,
3
4
5
1
5
2
,
7
6
3
3
9
,
-
-
-
-
-
0
5
4
2
,
)
0
2
7
1
(
,
3
3
8
0
4
3
2
4
1
,
-
1
6
3
1
,
)
3
2
5
(
1
0
3
1
,
6
1
3
4
,
-
-
8
0
4
3
6
4
-
9
1
)
4
2
2
(
-
-
7
0
0
1
,
)
9
4
9
2
(
,
-
2
9
0
1
,
4
4
9
2
,
)
9
1
2
(
9
-
-
-
5
8
1
,
7
2
5
8
3
,
0
0
1
6
6
6
)
7
4
3
(
)
0
8
1
1
(
,
)
8
(
6
9
8
,
4
2
2
2
0
,
3
0
1
7
6
6
-
-
-
-
6
9
7
7
9
0
7
5
,
1
-
-
-
-
)
1
3
(
9
3
5
,
1
3
8
5
1
,
9
5
0
1
,
5
0
6
,
1
-
-
-
-
5
1
1
4
,
-
-
8
9
2
3
,
)
8
8
(
4
5
6
3
,
1
8
1
-
7
3
0
1
,
9
3
0
4
,
8
5
1
,
6
1
8
9
2
,
3
6
-
-
1
3
5
2
,
)
4
4
1
(
)
1
4
2
(
)
8
9
2
(
0
0
8
,
5
1
1
4
2
)
6
2
1
1
(
,
0
0
8
,
4
6
8
4
1
4
1
,
7
2
0
1
1
,
6
9
0
,
9
2
7
9
0
4
,
7
8
0
7
3
,
2
2
2
,
8
3
-
-
2
7
2
2
)
8
2
(
-
3
9
6
1
8
-
-
-
)
1
(
9
4
1
-
7
9
5
8
1
5
-
3
3
6
8
3
-
4
)
4
(
-
9
1
8
3
4
1
4
1
)
5
(
-
)
5
(
3
4
4
-
7
2
)
4
(
-
-
8
4
3
7
1
8
8
3
6
2
)
4
(
-
)
1
(
)
5
(
4
0
4
8
3
0
5
9
3
-
6
2
-
6
2
)
0
1
(
-
-
3
2
9
2
3
)
3
3
(
)
6
(
-
-
3
1
3
-
7
7
3
2
)
7
(
-
7
-
4
2
)
4
(
-
-
)
7
(
0
0
1
3
1
1
0
1
2
9
2
2
0
0
2
-
6
-
1
-
7
)
1
(
1
9
1
3
2
1
1
)
2
(
-
)
2
(
1
2
2
-
2
2
)
1
(
1
2
1
-
-
6
7
)
1
(
8
4
1
-
-
)
2
(
2
5
1
7
5
3
4
9
6
-
-
7
0
1
-
)
9
(
8
7
7
-
-
)
4
(
7
6
5
1
4
6
3
,
3
9
5
,
8
4
)
0
9
9
(
6
6
1
,
8
4
-
-
1
9
2
1
,
-
5
1
6
3
,
1
3
4
3
,
2
3
9
,
6
4
-
)
4
(
5
7
4
1
4
2
)
9
5
9
(
-
-
-
-
-
-
-
-
4
1
3
3
7
7
4
8
)
9
6
2
(
-
4
2
5
-
7
8
4
0
4
)
6
(
-
5
9
6
2
0
6
2
,
2
4
4
4
0
,
7
-
-
-
-
-
6
2
-
2
7
9
7
8
3
2
,
)
2
0
2
(
)
6
4
1
(
1
7
2
,
5
4
6
4
0
1
-
-
-
7
2
1
-
-
1
1
8
3
8
)
5
3
3
(
5
1
-
-
)
6
2
(
4
7
0
,
7
)
3
(
1
4
8
5
8
6
,
6
4
6
2
1
8
4
5
,
1
6
6
1
,
1
8
4
,
1
-
-
-
-
-
-
-
-
-
8
1
3
7
1
,
)
0
3
1
(
)
1
3
1
(
5
5
1
,
4
1
4
1
8
9
2
,
3
8
5
9
2
,
6
1
1
,
1
3
-
-
)
1
(
4
8
1
)
5
2
(
0
7
9
,
2
1
6
3
4
,
2
3
2
4
,
4
0
1
,
4
3
-
-
-
)
3
(
6
4
1
2
9
6
5
9
6
1
1
0
1
,
-
-
-
-
-
-
-
)
8
4
(
5
5
6
1
,
-
)
7
(
0
8
4
-
3
0
2
-
-
7
1
3
9
-
5
-
-
-
9
6
2
7
7
6
,
2
1
2
1
8
,
2
6
4
1
7
8
2
8
7
1
6
7
0
4
4
,
6
2
1
1
4
0
4
,
0
6
8
6
,
3
4
1
1
,
)
1
3
e
t
o
n
r
e
f
e
R
(
ff
o
n
e
t
t
i
r
w
s
t
s
o
c
n
o
i
t
a
r
o
p
x
E
l
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
s
n
o
i
t
i
d
d
A
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
)
1
3
e
t
o
n
r
e
f
e
R
(
ff
o
n
e
t
t
i
r
w
s
t
s
o
c
n
o
i
t
a
r
o
p
x
E
l
,
n
o
i
t
e
l
p
e
d
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
l
u
m
u
c
c
A
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
t
n
e
m
r
i
a
p
m
i
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
9
1
0
2
,
l
i
r
p
A
1
0
t
a
s
a
s
t
e
s
s
a
U
O
R
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
C
)
2
3
e
t
o
n
(
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
c
t
n
e
m
r
i
a
p
m
I
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
t
n
e
m
r
i
a
p
m
I
/
s
s
e
r
g
o
r
p
-
n
i
-
k
r
o
w
l
a
t
i
p
a
C
)
2
3
e
t
o
n
(
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
c
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
C
t
n
u
o
m
a
g
n
i
y
r
r
a
C
/
e
u
l
a
V
k
o
o
B
t
e
N
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
h
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
)
)
b
(
3
e
t
o
n
r
e
f
e
R
(
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
i
i
n
o
i
t
a
n
b
m
o
c
s
s
e
n
s
u
b
h
g
u
o
r
h
t
n
o
i
t
i
s
u
q
c
A
i
9
1
0
2
l
i
r
p
A
1
0
t
a
s
a
s
t
e
s
s
a
U
O
R
s
n
o
i
t
i
d
d
A
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
l
k
c
o
B
s
s
o
r
G
s
r
a
l
u
c
i
t
r
a
P
T
N
E
M
P
O
L
E
V
E
D
R
E
D
N
U
S
T
E
S
S
A
E
L
B
G
N
A
T
N
I
I
I
N
O
T
A
R
O
L
P
X
E
D
N
A
S
S
E
R
G
O
R
P
-
N
I
-
K
R
O
W
L
A
T
P
A
C
I
,
S
T
E
S
S
A
E
L
B
G
N
A
T
N
I
I
,
I
T
N
E
M
P
U
Q
E
D
N
A
T
N
A
L
P
,
Y
T
R
E
P
O
R
P
5
306
Gross Block
As at 01 April 2019
ROU asset as at 01 April 2019
Additions
Disposals/ Adjustments
Exchange differences
As at 31 March 2020
Additions
Exchange differences
As at 31 March 2021
Accumulated depreciation and impairment
As at 01 April 2019
ROU balance on 01 April 2019
Charge for the year
Impairment charge/(reversal) for the year
Disposals/ Adjustments
Exchange differences
As at 31 March 2020
Charge for the year
Exchange differences
As at 31 March 2021
Net Book Value/Carrying amount
As at 01 April 2019
As at 31 March 2020
As at 31 March 2021
Intangible Assets
Particulars
Gross Block
As at 01 April 2019
Additions
Transfers from Property, Plant and Equipment
Exchange differences
As at 31 March 2020
Additions
Transfers from Property, Plant and Equipment
Disposals/ Adjustments
Exchange differences
As at 31 March 2021
Accumulated amortisation and impairment
As at 01 April 2019
Charge for the year
Disposals/ Adjustments
Transfers from Property, Plant and Equipment
Exchange differences
As at 31 March 2020
ROU Land
ROU Building
ROU Plant and
Equipment
184
94
-
-
278
6
-
284
-
20
22
-
-
42
12
-
54
-
236
230
224
35
(224)
8
43
-
(1)
42
-
34
-
(28)
2
8
7
-
15
-
35
27
-
334
-
11
345
3
(7)
341
-
18
-
-
1
19
62
(1)
80
-
326
261
Total
408
463
(224)
19
666
9
(8)
667
-
72
22
(28)
3
69
81
(1)
149
-
597
518
Software
License
Mining Rights
Total
(` in crores)
266
18
1
15
300
8
1
(6)
(5)
298
240
23
-
-
14
277
227
-
-
-
227
-
-
-
-
227
219
-
-
-
-
219
493
18
1
15
527
8
1
(6)
(5)
525
459
23
-
-
14
496
307
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Particulars
Charge for the year
Disposals/ Adjustments
Transfers from Property, Plant and Equipment
Exchange differences
As at 31 March 2021
Net Book Value/Carrying amount
As at 01 April 2019
As at 31 March 2020
As at 31 March 2021
Software
License
12
(6)
-
(4)
279
26
23
19
Mining Rights
0
-
-
-
219
8
8
8
(` in crores)
Total
12
(6)
-
(4)
498
34
31
27
Notes
a)
Plant and equipment include refineries, smelters, power plants, railway sidings, ships, aircraft, river fleet and
related facilities.
b) During the year ended 31 March 2021, interest capitalised was `233 Crore (31 March 2020: `673 crore).
c)
d)
Certain property, plant and equipment are pledged as collateral against borrowings, the details related to which
have been described in Note 17 on “Borrowings”.
In accordance with the exemption given under Ind AS 101, which has been exercised by the Company, a first time
adopter can continue its previous GAAP policy for accounting for exchange differences arising from translation of
long-term foreign currency monetary items recognised in the previous GAAP financial statements for the period
ending immediately before the beginning of the first Ind AS financial reporting period, i.e., 01 April 2016.
Accordingly, foreign currency exchange differences arising on translation/settlement of long-term foreign
currency monetary items acquired before 01 April 2016 pertaining to the acquisition of a depreciable asset
amounting to `40 Crore loss (31 March 2020: `13 crore loss) is adjusted to the cost of respective item of property,
plant and equipment.
e)
Property, Plant and Equipment, Capital work-in-progress and exploration and evaluation assets net block includes
share of jointly owned assets with the joint venture partners `6,510 Crore (31 March 2020: `6,229 Crore).
f)
Reconciliation of depreciation, depletion and amortisation expense
Particulars
Depreciation/Depletion/Amortisation expense on:
Property, Plant and equipment (Including ROU assets)
Intangible assets
As per Property, Plant and Equipment and Intangible assets schedule
Less: Cost allocated to joint ventures
As per Statement of Profit and Loss
For the year ended
31 March 2021
(` in crores)
For the year ended
31 March 2020
2,531
12
2,543
(24)
2,519
3,298
23
3,321
(57)
3,264
g)
h)
Freehold Land includes `144 Crore (31 March 2020: `146 Crore), accumulated amortization of `127 Crore (31
March 2020: `127 Crore), which is available for use during the lifetime of the Production Sharing Contract of the
respective Oil and Gas blocks and the title deed for the same is in the name of the licensee of the block.
A parcel of land aggregating to `349 Crore relating to Iron Ore business was reclassified during the previous year,
due to existence of litigation, to Financial Assets and later impaired (Refer note 32) and during the year `1 Crore (31
March 2020: `1 Crore) was transferred to intangible assets from Capital Work in Progress.
308
< BACK TO CONTENTS
6
FINANCIAL ASSETS: INVESTMENTS
A)
Non Current Investments
Particulars
(a)
Investment in equity shares - at cost/
deemed cost a
(fully paid up unless otherwise stated)
Subsidiary companies
Quoted
- Hindustan Zinc Limited, of `2/-each b
Unquoted
- Bharat Aluminium Company Limited, of
`10/- each (including 5 shares held jointly
with nominees) b
- Monte Cello BV, Netherlands, of Euro 453.78
each
Less: Reduction pursuant to merger c
- Sterlite (USA) Inc., of US$.01 per share
(`42.77 at each year end)
- Cairn India Holdings Limited (CIHL) of GBP
1 each
Less: Reduction pursuant to merger c
- Vizag General Cargo Berth Private Limited,
of `10 each (including 6 shares held jointly
with nominees) d
- Paradip Multi Cargo Berth Private Limited, of
`10 each (including 6 shares held jointly with
nominees)
- Sterlite Ports Limited, of `2 each (including 6
shares held jointly with nominees)
- Talwandi Sabo Power Limited, of `10 each
(including 6 shares held jointly with nominees)
- Sesa Resources Limited, of `10 each c
- Bloom Fountain Limited, of US$1 each
Less: Reduction pursuant to merger c
- MALCO Energy Limited of `2 each (including
6 shares held jointly with nominees)
Less: Reduction pursuant to merger c
- THL Zinc Ventures Limited of US$100 each
consisting of 1 ordinary share of US$1 and
1,00,000 Ordinary Shares of US$100 each
Less: Reduction pursuant to merger c
- THL Zinc Holdings BV of EURO 1 each
Less: Reduction pursuant to merger c
- ESL Steel Limited of `10 each (including 6
shares held jointly with nominees)
-Ferro Alloys Corporation Limited of `1 each
Associate companies - unquoted
- Gaurav Overseas Private Limited, of `10
each
- Rampia Coal Mines and Energy Private
Limited, of `1 each
As at 31 March 2021
As at 31 March 2020
No.
Amount
(` in Crore)
No.
Amount
(` in Crore)
2,743,154,310
44,398
2,743,154,310
44,398
112,518,495
553
112,518,495
553
40
204
(204)
100
0
0
40
204
(204)
100
0
0
420,810,062
28,873
420,810,062
28,873
47,108,000
(15,067)
13,806
182
32,108,000
(15,067)
13,806
32
10,000
250,000
0
0
10,000
250,000
0
0
3,206,609,692
3,207
3,206,609,692
3,207
1,250,000
2,201,000,001
23,366,406
14,734
(14,320)
116
(23)
46
(46)
23
(23)
100,001
3,738,000
1,765,553,040
340,000,000
323,000
27,229,539
14,734
(14,320)
116
(23)
46
(46)
23
(23)
757
1,250,000
2,201,000,001
23,366,406
100,001
414
93
0
3,738,000
0
1,770
1,765,553,040
37
0
3
323,000
27,229,539
757
414
93
0
0
1,770
-
0
3
309
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
Particulars
As at 31 March 2021
As at 31 March 2020
No.
Amount
(` in Crore)
No.
Amount
(` in Crore)
Particulars
Investment in equity shares at fair value
through other comprehensive income
Quoted
- Sterlite Technologies Limited, of `2
each ( including 60 shares held jointly with
nominees)
Unquoted
- Sterlite Power Transmission Limited, of `2
each (including 12 shares held jointly with
nominees)
- Goa Shipyard Limited of `5 each
Investment in preference shares of
subsidiary companies - at cost
Subsidiary companies – Unquoted
- Bloom Fountain Limited, 0.25% Optionally
Convertible Redeemable Preference shares of
US$1 each
- Bloom Fountain Limited, 0.25% Optionally
Convertible Redeemable Preference shares of
US$100 each
- THL Zinc Ventures Limited, 0.25%
Optionally Convertible Redeemable
Preference shares of US$1 each
Less: Reduction pursuant to merger c
- THL Zinc Holdings BV, 0.25% Optionally
Convertible Redeemable Preference shares of
EURO 1 each
Less: Reduction pursuant to merger c
Investment in Government or Trust
securities at cost / amortised cost
- 7 Years National Savings Certificates (31
March 2021: `35,450 31 March 2020: `35,450)
(Deposit with Sales Tax Authority)
- UTI Master gain of `10 each (31 March 2021:
`4,072 31 March 2020: `4,072)
- Vedanta Limited ESOS Trust (31 March
2021: `5,000 31 March 2020: `5,000)
Investments in debentures of subsidiary
companies at cost / amortised cost
- Vizag General Cargo Berth Private Limited,
0.1% compulsorily convertible debentures of
`1,000 each d
- MALCO Energy Limited, compulsorily
convertible debentures of `1,000 each
Less: Reduction pursuant to merger c
Investments in Co-operative societies at
fair value through profit and loss
- Sesa Ghor Premises Holders Maintenance
Society Limited, of `200 each (31 March 2021:
`8,000 31 March 2020: `8,000)
(b)
(c)
(d)
(e)
310
4,764,295
92
4,764,295
952,859
11
952,859
250,828
0
250,828
1,859,900
907
1,859,900
360,500
215
360,500
7,000,000
3,187
7,000,000
3,187
0
0
0
0
0
5,500,000
(3,187)
2,495
(2,495)
-
100
-
5,500,000
(3,187)
2,495
(2,495)
-
100
-
-
30
11
0
907
215
0
0
0
0
0
-
1,500,000
149
61,354,483
6,136
61,354,483
6,136
(6,118)
18
(6,118)
18
40
0
40
0
(f)
a.
b.
- Sesa Goa Sirsaim Employees Consumers
Co- operative Society Limited, of `10 each
(31 March 2021: `2,000 31 March 2020:
`2,000)
- Sesa Goa Sanquelim Employees Consumers
Co- operative Society Limited, of `10 each
(March 31, 2020: `2,300 March 31, 2019:
`2,300)
-Sesa Goa Sonshi Employees Consumers Co-
operative Society Limited, of `10 each (31
March 2021: `4,680 31 March 2020: `4,680)
-Sesa Goa Codli Employees Consumers Co-
operative Society Limited, of `10 each (31
March 2021: `4,500 31 March 2020: `4,500)
- Sesa Goa Shipyard Employees Consumers
Co-operative Society Limited, of `10 each (31
March 2021: `5,000 31 March 2020: `5,000)
- The Mapusa Urban Cooperative Bank
Limited, of `25 each (31 March 2021: `1,000
31 March 2020: `1,000)
Investment in Bonds - Unquoted at fair
value through profit and loss
- Infrastructure Leasing & Financial Services
Limited
Less: Provision for diminution in value of
investments in:
Bloom Fountain Limited
Sesa Resources Limited (Note 32)
Rampia Coal Mines and Energy Private Limited
Cairn India Holdings Limited (CIHL) (Note 32)
Total
Aggregate amount of impairment
Aggregate amount of quoted investments
Market value of quoted investments
Aggregate carrying amount of unquoted
investments
As at 31 March 2021
As at 31 March 2020
No.
200
230
468
450
500
40
Amount
(` in Crore)
0
0
0
0
0
0
No.
200
230
468
450
500
40
Amount
(` in Crore)
0
0
0
0
0
0
51
51
(1,536)
(750)
(2)
(3,339)
60,887
(5,627)
44,490
74,926
16,397
(1,536)
(750)
(2)
(3,339)
60,787
(5,627)
44,428
42,590
16,359
Carrying value of investment in equity shares of
Hindustan Zinc Limited (HZL) is at deemed cost
and for all other subsidiaries, it is at the cost of
acquisition.
Pursuant to the Government of India’s policy of
disvestment, the Company in April 2002 acquired
26% equity interest in HZL from the Government
of India. Under the terms of the Shareholder’s
Agreement (‘SHA’), the Company had two call
options to purchase all of the Government of India’s
shares in HZL at fair market value. The Company
also acquired an additional 20% of the equity
capital in HZL through an open offer. The Company
exercised the first call option on 29 August 2003
and acquired an additional 18.9% of HZL’s issued
share capital, increasing its shareholding to 64.9%.
The second call option provides the Company the
right to acquire the Government of India’s remaining
29.5% share in HZL. This call option is subject to
the right of the Government of India to sell 3.5%
of HZL shares to HZL employees. The Company
exercised the second call option on 21 July 2009.
The Government of India disputed the validity of the
call option and has refused to act upon the second
call option. Consequently, the Company invoked
arbitration which is in the early stages. The next date
of hearing is to be notified. The Government of India
without prejudice to the position on the Put / Call
option issue has received approval from the Cabinet
for divestment and the Government is looking to
divest through the auction route. Meanwhile, the
311
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
7
FINANCIAL ASSETS - TRADE RECEIVABLES
Particulars
Unsecured
Less: Provision for expected
credit loss
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
1,896
(573)
1,148
(12)
3,044
(585)
1,859
(513)
1,323
1,136
2,459
1,346
843
(11)
832
(a) The credit period given to customers ranges from zero to 90 days. Also refer note 20(C)(d).
(` in crores)
Total
2,702
(524)
2,178
(b) For amounts due and terms and conditions relating to related party receivables see note 37.
(c)
As at 31 March 2021, trade receivables amounting to `1,323 Crore (31 March 2020: ` 1,349 Crore) withheld by
GRIDCO (‘GRIDCO’ or ‘the Customer’) on account of certain disputes relating to computation of power tariffs
pending adjudication by Appellate Tribunal for Electricity (APTEL), which the Company is confident of recovering
fully. The Customer has also raised claims of `413 Crore on the Company in respect of short supply of power for
which a provision of `218 Crore has been made. Various minutes of meetings were signed with the Customer
for computing the short supply claims, which were subject to approval of Odisha State Electricity Regulatory
Commission (‘OERC’). On 22 June 2020 OERC pronounced its order on computation methodology for short supply
claims, basis which both the parties had to recompute the amount of claim and settle the matter in two months
from the date of the order. On initial impact assessment of the said Order by the Company, it believes that no
further provisioning is required in this regard.
Further, the Company filed an appeal before APTEL against the OERC Order. The matter is now listed before
registrar court on 14 July 2021. The Customer has also sought review of the OERC Order. The matter has been
posted for order by OERC in due course. In the meanwhile, power supply to GRIDCO has resumed and GRIDCO has
been making regular payments against monthly energy invoices.
The total trade receivables as at 01 April 2019 were `3,214 Crore (net of provision for expected credit loss).
(d)
8
FINANCIAL ASSETS - LOANS
Particulars
Unsecured, considered good
Loans to related parties (Refer note 37)
Loans and advances to employees
Unsecured, considered credit
impaired
Loans to related parties
(Refer note 37(e))
Less: Provision for expected credit loss
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Total
(` in crores)
180
-
-
-
180
522
1
5
(5)
523
702
1
5
(5)
703
183
-
-
-
183
1,595
1
1,778
1
-
-
-
1,596
-
1,779
Supreme Court has, in January 2016, directed status
quo pertaining to disinvestment of Government of
India’s residual shareholding while hearing the public
interest petition filed. The Company has filed an
early hearing application in Supreme Court which is
currently pending and is sub-judice. The hearings
in the matter have started and will now be listed for
further arguments in due course.
Pursuant to the Government of India’s policy of
divestment, the Company in March 2001 acquired
51% equity interest in BALCO from the Government
of India. Under the terms of the SHA, the Company
has a call option to purchase the Government of
India’s remaining ownership interest in BALCO at any
point from March 2, 2004. The Company exercised
this option on March 19, 2004. However, the
Government of India has contested the valuation and
validity of the option and contended that the clauses
of the SHA violate the (Indian) Companies Act,
1956 by restricting the rights of the Government
of India to transfer its shares and that as a result
such provisions of the SHA were null and void. In
the arbitration filed by the Company, the arbitral
tribunal by a majority award rejected the claims
of the Company on the grounds that the clauses
relating to the call option, the right of first refusal,
the “tag-along” rights and the restriction on the
transfer of shares violate the erstwhile Companies
Act, 1956 and are not enforceable. The Company has
challenged the validity of the majority award in the
Hon'ble High Court of Delhi and sought for setting
aside the arbitration award to the extent that it
holds these clauses ineffective and inoperative. The
Government of India also filed an application before
the High Court of Delhi to partially set aside the
arbitral award in respect of certain matters involving
valuation. The matter is currently scheduled for
hearing by the Delhi High Court. Meanwhile, the
Government of India without prejudice to its
position on the Put / Call option issue has received
approval from the Cabinet for divestment and the
Government is looking to divest through the auction
route.
On January 9, 2012, the Company offered to
acquire the Government of India’s interests in HZL
and BALCO for `15,492 Crore and `1,782 Crore
respectively. This offer was separate from the
contested exercise of the call options, and Company
proposed to withdraw the ongoing litigations in
relation to the contested exercise of the options
should the offer be accepted. To date, the offer has
not been accepted by the Government of India and
therefore, there is no certainty that the acquisition
will proceed.
In view of the lack of resolution on the options,
the non-response to the exercise and valuation
request from the Government of India, the resultant
uncertainty surrounding the potential transaction
and the valuation of the consideration payable, the
Company considers the strike price of the options to
be at the fair value, which is effectively nil, and hence
the call options have not been recognised in the
financial statements.
Reduction pursuant to merger of Cairn India Limited
with Vedanta Limited accounted for in the year
ended 31 March 2017.
During the year, 15 lakh 0.1% compulsorily
convertible debentures of `1,000 each held by the
Company have been fully converted into 1.5 Crore
equity shares of Vizag General Cargo Berth Private
Limited of face value of `10 each at a premium of `90
per share.
c.
d.
B)
Current Investment
Particulars
Investments carried at fair value through profit and loss
Investment in mutual funds- quoted
Investment in mutual funds- unquoted
Investment in bonds - quoted
Investment in India Grid Trust - quoted
Total
Aggregate amount of quoted investments, and market value thereof
Aggregate amount of unquoted investments
As at
31 March 2021
(` in crores)
As at
31 March 2020
-
2,016
-
0
2,016
-
2,016
81
589
1,448
0
2,118
1,529
589
312
313
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
11
INVENTORIES
Particulars
Raw Materials
Goods-in transit
Work-in-progress
Finished goods
Fuel Stock
Goods-in transit
Stores and Spares
Goods-in transit
Total
As at
31 March 2021
1,464
871
1,681
548
399
88
500
4
5,555
(` in crores)
As at
31 March 2020
1,370
595
1,835
465
608
258
557
1
5,689
(a)
(b)
(c)
For method of valuation for each class of inventories, refer note 3(a)(J).
Inventory held at net realisable value amounted to `2,329 Crore (31 March 2020: `2,263 Crore).
The write down of inventories amounting to `42 Crore (31 March 2020: `56 Crore) has been charged to the Statement of Profit and Loss
during the year.
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
59
495
70
-
634
-
15
450
-
-
-
6
4,731
112
222
1
253
11
59
495
76
4,731
746
222
16
703
11
717
411
76
-
469
-
15
391
-
-
-
23
3,038
479
286
1
264
-
(` in crores)
Total
717
411
99
3,038
948
286
16
655
-
(465)
1,258
(265)
5,071
(730)
6,329
(406)
1,673
(265)
3,826
(671)
5,499
12 CURRENT FINANCIAL ASSETS - CASH AND CASH EQUIVALENTS
9
FINANCIAL ASSETS - OTHERS
Particulars
Bank Deposits c
Site restoration asset a
Unsecured, considered good
Security deposits
Advance recoverable (Oil and Gas
Business)
Others (Refer note 26 (b))
Receivable from related parties
(Refer note 37)
Unsecured, considered credit impaired
Security deposits
Others b
Receivable from related parties
(Refer note 37(e))
Less: Provision for expected credit loss
Total
(a)
(b)
(c)
Site restoration asset earns interest at fixed rate based on respective deposit rate.
A parcel of land amounting to `349 Crore relating to Iron Ore business has been reclassified during the previous year, due to existing
litigation, from Property, plant and equipment and was later provided for (Refer note 32).
Bank deposits include margin money of `4 Crore (31 March 2020: Nil).
10 OTHER ASSETS
Particulars
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
767
94
42
512
277
773
-
166
755
385
-
633
767
260
797
897
277
1,406
716
-
95
453
334
674
(` in crores)
Total
716
-
-
-
973
1,068
606
-
455
1,059
334
1,129
202
3
-
313
(518)
2,371
-
-
37
4
(41)
1,939
Includes `30 Crore (31 March 2020: `30 Crore), being Company’s share of gross amount of `86 Crore (31 March 2019: `86 Crore) paid
under protest on account of Education Cess and Secondary Higher Education Cess for the financial year 2013-14.
Others include claim receivables, advance recoverable (oil and gas business), prepaid expenses and export incentive receivables. This
also includes amounts receivable from KCM (Refer note 32).
During the previous year, an impairment charge of `196 Crore has been recognised relating to copper business. Refer note 32(b).
-
-
37
4
(41)
2,034
202
3
37
317
(559)
4,404
202
3
-
263
(468)
2,272
202
3
37
267
(509)
4,306
Capital advances
Advances to related party
(Refer note 37)
Advances for supplies
Others
Balance with government
authorities a
Loan to employee benefit trust
Others b
Unsecured, considered doubtful
Capital advances c
Balance with government authorities
Advance for supplies
Others b
Less: Provision for doubtful advances
Total
(a)
(b)
(c)
314
Particulars
Balances with banks
Deposits with original maturity of less than 3 months (including interest accrued thereon) a
Cash on hand
Total
(a)
Bank deposits earns interest at fixed rate based on respective deposit rate.
13 CURRENT FINANCIAL ASSETS - OTHER BANK BALANCES
Particulars
Bank deposits with original maturity of more than 12 months (including interest accrued
thereon)
Bank deposits with original maturity of more than 3 months but less than 12 months
(including interest accrued thereon) a,b
Earmarked unpaid dividend accounts d
Earmarked escrow account e
Total
As at
31 March 2021
1,361
1,500
0
2,861
(` in crores)
As at
31 March 2020
1,661
185
0
1,846
As at
31 March 2021
0
(` in crores)
As at
31 March 2020
0
1,397
76
2
1,475
271
74
2
347
(a)
(b)
(c)
(d)
(e)
Includes `633 Crore (31 March 2020: `256 Crore) on lien with banks and margin money `12 Crore (31 March 2020: `12 Crore).
Restricted funds of `460 Crore (31 March 2020: Nil) held as interest reserve created against interest payment on loans from banks and
`21 Crore (31 March 2020: Nil) on lien with Others.
Bank deposits earns interest at fixed rate based on respective deposit rate.
Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed or unpaid dividend.
Earmarked escrow account is restricted in use as it relates to unclaimed redeemable preference shares.
315
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
14 SHARE CAPITAL
Particulars
A. Authorised equity share capital
Opening and Closing balance [equity shares of `1
each with voting rights]
Authorised preference share capital
Opening and Closing balance [preference shares
of `10/- each]
Issued, subscribed and paid up
Equity shares of `1/- each with voting rights a,b
B.
As at 31 March 2021
As at 31 March 2020
Number
(in crores)
Amount
(` in crores)
Number
(in crores)
Amount
(` in crores)
4,402
4,402
4,402
4,402
301
3,010
301
3,010
372
372
372
372
372
372
372
372
(a)
(b)
Includes 3,08,232 (31 March 2020: 3,08,232) equity shares kept in abeyance. These shares are not part of listed equity capital and
pending allotment as they are sub-judice.
Includes 1,21,93,159 (31 March 2020: 1,43,78,261 ) equity shares held by Vedanta Limited ESOS Trust (Refer note 25).
C. Shares held by the Ultimate holding company and its subsidiaries*
Particulars
Twin Star Holdings Limited
Twin Star Holdings Limited (2)
Finsider International Company Limited
Westglobe Limited
Welter Trading Limited
Vedanta Holdings Mauritius II Limited(3)
Total
As at 31 March 2021
As at 31 March 2020
No. of Shares held
(in crores)
137.94
-
40.15
4.43
3.82
18.50
204.84
% of holding
37.11
-
10.80
1.19
1.03
4.98
55.11
No. of Shares held
(in crores)
128.01
9.93
40.15
4.43
3.82
-
186.34
% of holding
34.44
2.67
10.80
1.19
1.03
-
50.13
* The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet date.
(1) All the above entities are subsidiaries of Volcan Investments Limited, the ultimate holding Company.
(2) Represented by 2,48,23,177 American Depository Shares ("ADS") which got coverted to equity shares in FY 20-21.
(3) Vedanta Holdings Mauritius II Limited (part of Promoter Group of Vedanta Limited) had purchased 185,000,000 equity shares aggregating
to 4.98% of equity share capital of Vedanta Limited, on 24 December 2020 via bulk deal on stock exchange.
D.
Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date
Particulars
Equity shares issued pursuant to Scheme of Amalgamation (in FY 2017-18)
Preference shares issued pursuant to Scheme of Amalgamation (in FY 2017-18)*
* These were redeemed on 27 October 2018.
As at
31 March 2021
75
301
(` in crores)
As at
31 March 2020
75
301
< BACK TO CONTENTS
E. Details of shareholders holding more than 5% shares in the Company *
Particulars
Twin Star Holdings Limited
Twin Star Holdings Limited #
Finsider International Company Limited
ICICI Prudential Equity Arbitrage Fund
Life Insurance Corporation of India
As at 31 March 2021
As at 31 March 2020
No. of Shares held
(in crores)
137.94
-
40.15
8.32
24.40
% of holding
37.11
-
10.80
2.24
6.56
No. of Shares held
(in crores)
128.01
9.93
40.15
18.69
23.67
% of holding
34.44
2.67
10.80
5.03
6.37
* The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet date.
# 2,48,23,177 ADS, held by CITI Bank N.A. New York as a depository which has been converted to equity shares in FY 20-21
As per the records of the Company, including its register
of shareholders/members, the above shareholding
represents legal ownership of shares.
F. Other disclosures
(i)
The Company has one class of equity shares having a
par value of `1 per share. Each shareholder is eligible
for one vote per share held and dividend as and when
declared by the Company. The dividend proposed
by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend which is
paid as and when declared by the Board of Directors.
In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive
any of the remaining assets of the Company,
after distribution of all preferential amounts, in
proportion to their shareholding.
15
a)
b)
(ii)
(iii)
ADS shareholders do not have right to attend
General meetings in person and also do not have
right to vote. They are represented by depository,
CITI Bank N.A. New York. As at 31 March 2021 -
16,09,03,244 equity shares were held in the form
of 4,02,25,811 ADS (31 March 2020: 26,17,80,208
equity shares were held in the form of 6,54,45,052
ADS).
In terms of Scheme of Arrangement as approved
by the Hon'ble High Court of Judicature at Mumbai,
vide its order dated 19 April 2002, the erstwhile
Sterlite Industries (India) Limited (merged with
the Company during 2013-14) during 2002-2003
reduced its paid up share capital by `10 Crore.
There are 2,01,296 equity shares (31 March 2020:
2,01,711 equity shares) of `1 each pending clearance
from NSDL. The Company has filed an application
in Hon'ble High Court of Mumbai to cancel these
shares, the final decision on which is pending.
Hon'ble High Court of Judicature at Mumbai, vide its
interim order dated 06 September 2002 restrained
any transaction with respect to subject shares.
OTHER EQUITY (REFER STATEMENT OF CHANGES
IN EQUITY)
General reserve: Under the erstwhile Companies
Act, 1956, general reserve was created through
an annual transfer of net income at a specified
percentage in accordance with applicable
regulations. The purpose of these transfers was
to ensure that if a dividend distribution in a given
year is more than 10% of the paid-up capital of
the Company for that year, then the total dividend
distribution is less than the total distributable
reserves for that year. Consequent to introduction
of Companies Act, 2013, the requirement to
mandatorily transfer a specified percentage of the
net profit to general reserve has been withdrawn.
Debenture redemption reserve: As per the
earlier provision under the Indian Companies Act,
companies that issue debentures were required
to create debenture redemption reserve from
annual profits until such debentures are redeemed.
Companies are required to maintain 25% as a
reserve of outstanding redeemable debentures.
The amounts credited to the debenture redemption
reserve may not be utilized except to redeem
debentures.The MCA vide its Notification dated
16 August 2019, had amended the Companies (Share
Capital and Debenture) Rules, 2014, wherein the
requirement of creation of Debenture Redemption
Reserve has been exempted for certain class of
companies, hence, in view of the same, Vedanta
Limited is not required to create Debenture
Redemption Reserve.
c)
Preference share redemption reserve: The
Companies Act, 2013 provides that companies that
issue preference shares may redeem those shares
from profits of the Company which otherwise
would be available for dividends, or from proceeds
of a new issue of shares made for the purpose of
redemption of the preference shares. If there is a
316
317
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
premium payable on redemption, the premium must
be provided for, either by reducing the additional
paid in capital (securities premium account) or net
income, before the shares are redeemed. If profits
are used to redeem preference shares, the value
of the nominal amount of shares redeemed should
be transferred from profits (retained earnings) to
the preference share redemption reserve. This
amount should then be utilised for the purpose of
redemption of redeemable preference shares. This
reserve can be used to issue fully paid-up bonus
shares to the shareholders of the Company.
d)
Capital reserve: The balance in capital reserve has
mainly arisen consequent to merger of Cairn India
Limited with the Company.
16 CAPITAL MANAGEMENT
The Company’s objectives when managing capital is to
safeguard continuity, maintain a strong credit rating and
healthy capital ratios in order to support its business
The following table summarizes the capital of the Company:
and provide adequate return to shareholders through
continuing growth. The Company’s overall strategy
remains unchanged from previous year.
The Company sets the amount of capital required on the
basis of annual business and long-term operating plans
which include capital and other strategic investments.
The funding requirements are met through a mixture
of equity, internal fund generation and borrowings. The
Company’s policy is to use current and non-current
borrowings to meet anticipated funding requirements.
The Company monitors capital on the basis of the gearing
ratio which is net debt divided by total capital (equity plus
net debt). The Company is not subject to any externally
imposed capital requirements.
Net debt are non-current and current debts as reduced
by cash and cash equivalents, other bank balances and
current investments. Equity comprises all components
including other comprehensive income.
Particulars
Cash and cash equivalents (Refer note 12)
Other bank balances a (Refer note 13)
Non-current bank deposits (Refer note 9)
Current investments (Refer note 6B)
Total cash (a)
Non-current borrowings (Refer note 17A)
Current borrowings (Refer note 17B)
Current maturities of long term debt (Refer note 19)
Total borrowings (b)
Net debt c=(b-a)
Total equity
Total capital (equity + net debt) (d)
Gearing ratio (times) (c/d)
As at
31 March 2021
2,861
916
59
2,016
5,852
20,913
1,140
10,113
32,166
26,314
76,790
103,104
0.26
(` in crores)
As at
31 March 2020
1,846
271
717
2,118
4,952
21,629
10,819
6,489
38,937
33,985
69,895
103,880
0.33
(a)
The constituents of ‘total cash’ for the purpose of capital management disclosure to include only those amounts
of restricted funds that are corresponding to liabilities (e.g. margin money deposits). Consequently, restricted
funds amounting to `76 Crore (As at 31 March 2021: `559 Crore) have been excluded from ‘total cash’ in the capital
management disclosures for the comparative year ended 31 March 2020 (Refer note 13(b),13(d) and 13(e)).
< BACK TO CONTENTS
17 FINANCIAL LIABILITIES - BORROWINGS
A) Non- current borrowings
Particulars
At amortised cost
Secured
Non convertible debentures
Term loans from banks
- Rupee term loans
- Foreign currency term loans
Others
Unsecured
Deferred sales tax liability
Redeemable preference shares
Non current borrowings (A)
Less: Current maturities of long term debt (Refer note 19)
Total Non current borrowings (Net)
Current borrowings (B) (Refer note 17 B)
Total borrowings (A+B)
B) Current borrowings
Particulars
At amortised cost
Secured
Working capital loan
Packing credit in foreign currencies from banks
Term loans from banks (Foreign currency)
Loans repayable on demand from banks
Amounts due on factoring of receivables
Others
Unsecured
Loans repayable on demand from banks
Loan from Related party
Commercial paper
Amounts due on factoring of receivables
Total
As at
31 March 2021
(` in crores)
As at
31 March 2020
10,909
13,013
18,868
1,137
48
62
2
31,026
(10,113)
20,913
1,140
32,166
11,724
3,227
75
77
2
28,118
(6,489)
21,629
10,819
38,937
As at
31 March 2021
(` in crores)
As at
31 March 2020
300
350
-
-
-
-
290
200
-
-
1,140
12
-
1,041
1
10
1,138
1,077
-
7,524
16
10,819
In the event Vedanta Resources Limited ceases to be the Company's majority shareholder, the Company will be required
to immediately repay some of its outstanding long term debt.
318
319
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
a) Details of Non-convertible debentures issued by the Company have been provided below (Carrying Value):
Particulars
9.2% due February-2030
9.2% due December-2022
8.75% due June-2022
7.5% due March-2022
8.9% due December-2021
8.75% due September-2021
9.18% due July-2021
8.5% due June-2021
8.75% due April-2021
8.5% due April-2021
9.45% due August-2020
8.7% due April-2020
Total
As at
31 March 2021
2,000
749
1,269
493
899
250
1,000
1,650
250
2,349
-
-
10,909
(` in crores)
As at
31 March 2020
2,000
748
1,268
-
898
250
1,000
1,650
250
2,349
2,000
600
13,013
b) Vedanta Limited has taken borrowings towards funding of its acquisitions, capital expenditure and working capital
requirements. The borrowings comprise of funding arrangements from various banks and financial institution. The
details of security provided by the Company to various lenders on the assets of the Company are as follows:
Particulars
Secured long term borrowings
Secured short term borrowings
Total secured borrowings
Facility Category
Security details
Working capital loans*
Secured by first pari passu charge on current assets of
Vedanta Limited
Other secured working capital loans
Non Convertible Debentures Secured by the whole of the movable fixed assets of (i)
Alumina Refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Odisha and (ii) Aluminium Smelter
having output of 1.6 MTPA along with a 1,215 (9*135) MW
CPP at Jharsuguda, Odisha.
As at
31 March 2021
30,962
650
31,612
As at
31 March 2021
650
(` in crores)
As at
31 March 2020
28,039
2,202
30,241
(` in crores)
As at
31 March 2020
3
-
5,409
20
4,914
Non Convertible Debentures Secured by a first pari passu charge on the whole of
4,000
3,999
the present and future of the movable fixed assets of
2400 MW (600 MW*4) Power Plant of Vedanta Limited at
Jharsuguda location.
Secured by way of first ranking pari passu charge on
movable fixed assets in relation to the Lanjigarh Refinery
Expansion Project (having capacity beyond 2 MTPA and
upto 6 MTPA) situated at Lanjigarh, Orissa. The Lanjigarh
Refinery Expansion Project shall specifically exclude the 1
MTPA alumina refinery of Vedanta Limited along with 90
MW power plant in Lanjigarh and all its related capacity
expansions.
500
1,100
< BACK TO CONTENTS
Facility Category
Security details
Term loans from banks
(includes rupee term loans
and foreign currency term
loans)
Term loans from banks
(includes rupee term loans
and foreign currency term
loans)
Secured by way of first pari passu charge on all present
and future of the movable fixed assets of 2400 MW (600
MW*4) Power Plant of Vedanta Limited at Jharsuguda
location, as may be identified and notified by the Issuer
to the Security Trustee from time to time, with minimum
asset coverage of 1 time of the aggregate face value of
debentures outstanding at any point of time.
Other secured non-convertible debuntures
First pari passu charge by way of hypothecation/ equitable
mortgage on the movable/ immovable assets of the
Aluminium Division of Vedanta Limited comprising of
alumina refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa; aluminium smelter having
output of 1.6 MTPA along with a 1215 (9x135) MW CPP at
Jharsuguda, Orissa, both present and future
Secured by a pari passu charge by way of hypothecation of
all the movable fixed assets of Vedanta Limited pertaining
to its Aluminium Division project consisting of (i) alumina
refinery having output of 1 MTPA (Refinery) along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa (Power Plant); and (ii)
aluminium smelter having output of 1.6 MTPA along with
a 1215 (9x135) MW CPP at Jharsuguda, Orissa (Smelter)
(the Refinery, Power Plant and Smelter). Also, a first pari
passu charge by way of equitable mortgage on the land
pertaining to the mentioned project of aluminium division
Secured by a pari passu charge by way of hypothecation
on the movable fixed assets of the Lanjigarh Refinery
Expansion Project including 210 MW Power Project.
Lanjigarh Refinery Expansion Project shall specifically
exclude the 1 MTPA alumina refinery of Vedanta Limited
along with 90 MW power plant in Lanjigarh and all its
related expansions
Secured by a pari passu charge by way of hypothecation
on the movable fixed assets of Vedanta Limited pertaining
to its Aluminium Division comprising of 1 MTPA alumina
refinery plant with 90 MW captive power plant at Lanjigarh,
Odisha and 1.6 MTPA aluminium smelter plant with 1215
MW captive power plant at Jharsuguda, Odisha
Secured by a pari passu charge by way of hypothecation/
equitable mortgage of the movable/ immovable fixed
assets of Vedanta Limited pertaining to its Aluminium
Division comprising of 1 MTPA alumina refinery plant with
90 MW captive power plant at Lanjigarh, Odisha and 1.6
MTPA aluminium smelter plant with 1215 MW captive
power plant at Jharsuguda, Odisha
First pari passu charge by way of hypothecation/ equitable
mortgage on the movable/ immovable assets of the
Aluminium Division of Vedanta Limited comprising of
alumina refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa; aluminium smelter having
output of 1.6 MTPA along with a 1215 (9x135) MW CPP
at Jharsuguda, Orissa and additional charge on Lanjigarh
Expansion project, both present and future
As at
31 March 2021
(` in crores)
As at
31 March 2020
1,000
1,000
-
1,883
2,000
3,384
2,194
2,885
436
458
1,227
1,380
2,801
2,984
1,092
1,137
320
321
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Facility Category
Security details
Secured by first pari passu charge by way of hypothecation
over all the movable assets (save and except Current
Assets) of Vedanta Limited, present or future, pertaining
to Lanjigarh refinery expansion project beyond 1.7 MTPA
to 6.0 MTPA located at Lanjigarh, Odisha including but not
limited to plant and machinery, machinery spares, tools
and accessories in relation to aforementioned expansion
project. Among others, the Lanjigarh Refinery Expansion
Project shall specifically exclude the alumina refinery upto
1.7 MTPA of the company along with 90 MW power plant in
Lanjigarh and all its related expansions
Secured by first pari passu charge by the way of whole of
the movable fixed assets of (i) Alumina Refinery having
output of 1 MTPA along with co-generation captive power
plant with an aggregate capacity of 90MW at Lanjigarh,
Odisha and (ii) Aluminium Smelter having output of 1.6
MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda,
Odisha.
Secured by a first pari passu charge on the identified
fixed assets of the Vedanta Limited both present and
future, pertaining to its Aluminium business (Jharsuguda
Plant, Lanjigarh Plant), 2400 MW power plant assets at
Jharsuguda, Copper Plant assets at Silvasa, Iron ore
business in the states of Karnataka and Goa, dividends
receivable from Hindustan Zinc Limited (“HZL”) a
subsidiary of the Vedanta Limited, and the debt service
reserve account to be opened for the Facility along with
the amount lying to the credit thereof.
Other secured term loans
First charge by way of hypothecation on the entire stocks
of raw materials, semi-finished and finished goods,
consumable stores and spares and such other movables
including book-debts, bills whether documentary or clean,
outstanding monies, receivables and all other current
assets of Vedanta limited, both present and future, ranking
pari passu with other participating banks
Other secured borrowings
Term loans from banks
(includes rupee term loans
and foreign currency term
loans)
Others
Total
As at
31 March 2021
(` in crores)
As at
31 March 2020
686
736
1,148
1,487
8,538
-
-
48
1,541
1,145
-
31,612
68
30,241
* Includes loans repayable on demand from banks, export packing credit and amounts due on factoring.
c) The Company facilities are subject to certain financial and non- financial covenants. The primary covenants which
must be complied with include interest service coverage ratio, current ratio, debt service coverage ratio, total outside
liabilities to total net worth, fixed assets coverage ratio, ratio of total term liabilities to net worth and return on fixed
assets. The Company has complied with the covenants as per the terms of the loan agreement.
< BACK TO CONTENTS
d) Terms of repayment of total borrowings outstanding as at 31 March 2021 are provided below -
(` in crores)
Borrowings
Foreign Currency
term Loan
Rupee term loan
Non convertible
debentures
Working capital
loan*
Deferred sales tax
liability
Redeemable
preference shares
Loan from Related
party
Others
Total
Weighted
average of
interest as at
31 March 2021
Total
carrying
value
<1 year
1-3
years
3-5
years
>5
years
Remarks
3.93% 1,137
541
596
-
- Repayable in 15 quarterly repayments
9.12% 18,868
2,647
4,761
5,195
6,400 Repayable in 464 quarterly installments and 1 half
8.77% 10,909
6,900
2,020
-
2,000 Repayable in 10 bullet payments
yearly payment
7.13%
940
940
-
-
- Export packing credit, working capital loan and
loan repayable on demand are repayable within
one year from the date of drawal
62
13
46
12
- Repayable in 67 monthly installments
NA
NA
2
2
7.40%
200
200
-
-
-
-
- The redemption and dividend paid to the
preference shares unclaimed if any, is payable on
claim.
- Repayable in one bullet payment
5.23%
48
48
32,166 11,291
-
7,423
-
5,207
- Repayable in 7 bullet payments
8,400
The above maturity is based on the total principal outstanding gross of issue expenses and discounting impact of deferred sales tax liability.
* Includes loans repayable on demand from banks for `290 Crore.
e) Terms of repayment of total borrowings outstanding as at 31 March 2020 are provided below -
(` in crores)
Borrowings
Foreign Currency
term Loan
Rupee term loan
Weighted
average of
interest as at
31 March 2020
Total
carrying
value
<1 year
1-3
years
3-5
years
>5
years
Remarks
4.40% 4,268
1,970
1,609
150
540 Repayable in 69 quarterly repayments and one
bullet payment
8.84% 11,724
2,912
3,641
2,331
2,876 Repayable in 264 quarterly installments and 3
Non convertible
debentures
Commercial paper
Working capital loan*
8.92% 13,013
2,600
8,420
6.20% 7,524
7.91% 1,090
7,524
1,090
-
-
-
-
-
half yearly installments
2,000 Repayable in 11 bullet payments
- Repayable in 29 bullet payments
- Export packing credit & loan repayable on
demand is repayable within 1-6 months from the
date of drawal and also includes working capital
loan which is repayable in one bullet payment.
4.79%
26
26
-
-
- Repayable within one month
Amounts due on
factoring
Deferred sales tax
liability
Redeemable
preference shares
Suppliers' credit
7.90% 1,213
1,179
34
77
20
42
28
1 Repayable in 78 monthly installments
NA
NA
2
2
-
-
-
- The redemption and dividend paid to the
preference shares unclaimed if any, is payable on
claim.
- Repayable within 6-12 months and 6 suppliers
credit LC repayable in more than 12 months upto
36 months
322
323
Total
38,937 17,323 13,746
2,509
5,417
The above maturity is based on the total principal outstanding gross of issue expenses and discounting impact of deferred sales tax liability.
* Includes loans repayable on demand from banks for `1078 Crore.
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | f) Movement in borrowings during the year is provided below-
Particulars
Opening balance at 01 April 2019
Cash flow
Other non-cash changes
As at 01 April 2020
Cash flow
Other non Cash Changes
Foreign exchange Currency Translation differences
As at 31 March 2021
*including Current maturities of Long term borrowing
Short-term
borrowing
17,180
(7,011)
650
10,819
(10,135)
466
(10)
1,140
Long-term
borrowing*
25,024
2,955
139
28,118
3,457
(549)
-
31,026
(` in crores)
Total debt
42,204
(4,056)
789
38,937
(6,678)
(83)
(10)
32,166
Other non-cash changes comprised of amortisation of borrowing costs, foreign exchange difference on borrowings
and reclassification between borrowings due within one year and borrowings due after one year.
18A FINANCIAL LIABILITIES - TRADE PAYABLES a
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Non-current
Current
Particulars
Total outstanding dues of micro, small
and medium enterprises
(Refer note 40(b))
Total outstanding dues of creditors
other than micro, small and medium
enterprises
Total outstanding dues of related
parties b
Total
-
-
-
-
209
Total
209
3,499
3,499
95
95
3,803
3,803
(` in crores)
Total
182
182
3,301
3,301
27
27
3,510
3,510
-
-
-
-
(a)
(b)
Trade payables are non- interest bearing and are normally settled upto 180 days terms.
For terms and conditions relating to related party payables, see note 37.
18B Operational Buyers' /Suppliers' Credit is availed in foreign currency from offshore branches of Indian banks or
foreign banks at an interest rate ranging from 0.4% to 3.5% per annum and in rupee from domestic banks at interest
rate ranging from 4.25-6.65% per annum. These trade credits are largely repayable within 180 days from the date of
draw down. Operational Buyers' credit availed in foreign currency is backed by Standby Letter of Credit issued under
working capital facilities sanctioned by domestic banks. Part of these facilities are secured by first pari passu charge
over the present and future current assets of the Company.
19 FINANCIAL LIABILITIES - OTHERS
Particulars
Liability for capital expenditure
Security deposits and retentions
Interest accrued but not due
Current maturities of long term debt a
Unpaid/unclaimed dividend b
Unpaid matured deposits and interest
accrued thereon c
Profit petroleum payable
As at 31 March 2021
As at 31 March 2020
Non-current
190
-
-
-
-
-
Current
4,385
26
859
10,113
76
0
Total
Non-current
Current
4,575
26
859
10,113
76
0
47
-
170
-
-
-
5,203
28
911
6,489
74
0
(` in crores)
Total
5,250
28
1,081
6,489
74
0
-
862
862
-
396
396
324
At 01 April 2019
Additions during the year
Interest on lease liabilities
Payments made
Deletions
At 31 March 2020
Additions during the year
Interest on lease liabilities
Payments made
Deletions
At 31 March 2021
< BACK TO CONTENTS
Particulars
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Dues to related parties (Refer note 37)
Lease liabilities e
Other liabilities d
Total
-
60
-
250
1,497
73
1,464
19,355
1,497
133
1,464
19,605
-
71
-
288
68
231
1,461
14,861
(` in crores)
Total
68
302
1,461
15,149
(a)
Current Maturities of long term debt consists of:
Particulars
Non-convertible debentures
Deferred sales tax liability
Term loans from banks
- Rupee term loans
- Foreign currency term loans
Redeemable preference shares
Others
Total
As at
31 March 2021
6,890
12
2,620
541
2
48
10,113
(` in crores)
As at
31 March 2020
2,596
20
2,901
929
2
41
6,489
(b)
(c)
(d)
Does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund
except `0.10 Crore (31 March 2020: `0.10 Crore) which is held in abeyance due to a pending legal case.
Matured deposits of `0.01 Crore (March 31,2020: `0.01 Crore) due for transfer to Investor Education and
Protection Fund have not been transferred in view of pending litigation between the beneficiaries.
Includes revenue received in excess of entitlement interest of `737 Crore (31 March 2020: `765 Crore),
reimbursement of expenses, provision for expenses, liabilities related to compensation/claim etc.
(e) The movement in lease liabilities is as follows:
(` in crores)
191
463
16
159
209
302
9
14
164
28
133
325
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
20 FINANCIAL INSTRUMENTS
A. Financial assets and liabilities:
The accounting classification of each category of financial instruments, and their carrying amounts, are set out below:
Financial Liabilities
As at 31 March 2021
Financial Assets
Investments*
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Derivatives
Other financial assets
Total
Fair value
through profit
or loss
2,067
51
-
-
-
10
-
2,128
Financial Liabilities
Borrowings
Trade payables
Operational buyers' credit / suppliers' credit
Derivatives
Other financial liabilities**
Total
As at 31 March 2020
Fair value
through other
comprehensive
income
103
-
-
-
-
-
-
103
Fair value
through profit
or loss
-
445
-
40
-
485
Financial Assets
Investments*
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Derivatives
Other financial assets
Total
Fair value
through profit
or loss
2,169
9
-
-
-
222
-
2,400
Fair value
through other
comprehensive
income
41
-
-
-
-
-
-
41
Derivatives
designated
as hedging
instruments
-
-
-
-
-
56
-
56
Derivatives
designated
as hedging
instruments
-
-
-
149
-
149
Derivatives
designated
as hedging
instruments
-
-
-
-
-
329
-
329
(` in crores)
Amortised cost
Total carrying
value
Total fair value
-
2,408
2,861
1,475
703
-
6,329
13,776
2,170
2,459
2,861
1,475
703
66
6,329
16,063
2,170
2,459
2,861
1,475
703
66
6,329
16,063
(` in crores)
Amortised cost
Total carrying
value
Total fair value
32,166
3,358
6,029
9,492
51,045
32,166
3,803
6,029
189
9,492
51,679
32,107
3,803
6,029
189
9,492
51,620
(` in crores)
Amortised cost
Total carrying
value
Total fair value
-
2,169
1,846
347
1,779
-
5,499
11,640
2,210
2,178
1,846
347
1,779
551
5,499
14,410
2,210
2,178
1,846
347
1,779
551
5,499
14,410
326
Borrowings
Trade payables
Operational buyers' credit / suppliers' credit
Derivatives
Other financial liabilities**
Total
Fair value
through profit
or loss
-
343
-
9
-
352
Derivatives
designated
as hedging
instruments
-
-
-
38
-
38
(` in crores)
Amortised cost
Total carrying
value
Total fair value
38,937
3,167
7,129
-
8,660
57,893
38,937
3,510
7,129
47
8,660
58,283
38,912
3,510
7,129
47
8,660
58,258
* Investment in note 6 also includes investments (in equity and preference shares) in subsidiaries, associates and joint ventures which are
carried at cost and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures”. Hence, the same have been
excluded from the above table.
**Include lease liabilities of `133 Crore as at 31 March 2021 (31 March 2020: `302 Crore).
Fair value hierarchy
B.
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
(i)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
(ii)
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e., derived from prices).
(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The below table summarises the categories of financial assets and liabilities as at 31 March 2021 and 31 March 2020
measured at fair value:
As at 31 March 2021
Financial Assets
Level 1
Level 2
At fair value through profit or loss
-Investments
-Derivative financial assets*
-Trade receivables
At fair value through other comprehensive income
-Investments
Derivatives designated as hedging instruments
-Derivative financial assets*
Total
2,016
-
-
92
-
2,108
-
10
51
-
56
117
Financial Liabilities
Level 1
Level 2
At fair value through profit or loss
-Derivative financial liabilities*
-Trade payables
Derivatives designated as hedging instruments
-Derivative financial liabilities*
Total
-
-
-
-
40
445
149
634
(` in crores)
Level 3
51
-
-
11
-
62
(` in crores)
Level 3
-
-
-
-
327
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | As at 31 March 2020
Financial Assets
Level 1
Level 2
At fair value through profit or loss
-Investments
-Derivative financial assets*
-Trade receivables
At fair value through other comprehensive income
-Investments
Derivatives designated as hedging instruments
-Derivative financial assets*
Total
589
-
-
30
-
619
1,529
222
9
-
329
2,089
Financial Liabilities
Level 1
Level 2
At fair value through profit or loss
-Derivative financial liabilities*
-Trade payables
Derivatives designated as hedging instruments
-Derivative financial liabilities*
Total
* Refer “D” below.
-
-
-
-
9
343
38
390
(` in crores)
Level 3
51
-
-
11
-
62
(` in crores)
Level 3
-
-
-
-
The below table summarises the fair value of borrowings which are carried at amortised cost as at 31 March 2021 and 31
March 2020:
As at 31 March 2021
Financial Liabilities
Borrowings
Total
As at 31 March 2020
Financial Liabilities
Borrowings
Total
Level 1
-
-
Level 1
-
-
Level 2
32,107
32,107
Level 2
38,912
38,912
(` in crores)
Level 3
-
-
(` in crores)
Level 3
-
-
The fair value of the financial assets and liabilities are
at the amount that would be received to sell an asset
and paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The following methods and assumptions were used to
estimate the fair values:
active markets. Other current investments are valued
on the basis of market trades, poll and primary issuances
for securities issued by the same or similar issuer
and for similar maturities or based on the applicable
spread movement for the security derived based on the
aforementioned factor(s).
Investments traded in active markets are determined
by reference to quotes from the financial institutions;
for example: Net asset value (NAV) for investments in
mutual funds declared by mutual fund house. For other
listed securities traded in markets which are not active,
the quoted price is used wherever the pricing mechanism
is same as for other marketable securities traded in
Trade receivables, cash and cash equivalents, other
bank balances, loans, other financial assets, current
borrowings, trade payables and other current financial
liabilities: fair values approximate their carrying amounts
largely due to the short-term maturities of these
instruments.
328
< BACK TO CONTENTS
Other non-current financial assets and liabilities: Fair
value is calculated using a discounted cash flow model
with market assumptions, unless the carrying value is
considered to approximate to fair value.
Non-current fixed-rate and variable-rate borrowings:
Fair value has been determined by the Company based
on parameters such as interest rates, specific country
risk factors, and the risk characteristics of the financed
project.
Derivative financial assets/liabilities: The Company
enters into derivative financial instruments with various
counterparties. Interest rate swaps, foreign exchange
forward contracts and commodity forward contracts are
valued using valuation techniques, which employs the
use of market observable inputs. The most frequently
applied valuation techniques include the forward pricing
and swap models, using present value calculations. The
models incorporate various inputs including foreign
exchange spot and forward rates, yield curves of the
respective currencies, currency basis spreads between
the respective currencies, interest rate curves and
forward rate curves of the underlying commodity.
Commodity contracts are valued using the forward LME
rates of commodities actively traded on the listed metal
exchange i.e. London Metal Exchange, United Kingdom
(U.K.).
For all other financial instruments, the carrying amount is
either the fair value, or approximates the fair value.
The changes in counterparty credit risk had no material
effect on the hedge effectiveness assessment for
derivatives designated in hedge relationship and the
value of other financial instruments recognised at fair
value.
The estimated fair value amounts as at 31 March 2021
have been measured as at that date. As such, the fair
values of these financial instruments subsequent to
reporting date may be different than the amounts
reported at each year-end.
There were no significant transfers between Level 1,
Level 2 and Level 3 during the year.
C. Risk management framework
The Company’s businesses are subject to several risks
and uncertainties including financial risks.
The Company’s documented risk management policies
act as an effective tool in mitigating the various financial
risks to which the businesses are exposed in the course
of their daily operations. The risk management policies
cover areas such as liquidity risk, commodity price risk,
foreign exchange risk, interest rate risk, counterparty
credit risk and capital management. Risks are identified
at both the corporate and individual subsidiary level
with active involvement of senior management. Each
operating subsidiary in the Company has in place risk
management processes which are in line with the
Company’s policy. Each significant risk has a designated
‘owner’ within the Company at an appropriate senior
level. The potential financial impact of the risk and its
likelihood of a negative outcome are regularly updated.
The risk management process is coordinated by the
Management Assurance function and is regularly
reviewed by the Company’s Audit Committee. The Audit
Committee is aided by the other Committees of the
Board including the Risk Management Committee, which
meets regularly to review risks as well as the progress
against the planned actions. Key business decisions
are discussed at the periodic meetings of the Executive
Committee. The overall internal control environment
and risk management programme including financial risk
management is reviewed by the Audit Committee on
behalf of the Board.
The risk management framework aims to:
improve financial risk awareness and risk
transparency
identify, control and monitor key risks
identify risk accumulations
provide management with reliable information on the
Company’s risk situation
improve financial returns
Treasury management
Treasury management focuses on liability management,
capital protection, liquidity maintenance and yield
maximisation. The treasury policies are approved by the
Committee of the Board. Daily treasury operations of the
business units are managed by their respective finance
teams within the framework of the overall Group treasury
policies. Long-term fund raising including strategic
treasury initiatives are managed jointly by the business
treasury team and the central team at corporate treasury
while short-term funding for routine working capital
requirements is delegated to business units. A monthly
reporting system exists to inform senior management
of the Company’s investments and debt position,
exposure to currency, commodity and interest rate risk
and their mitigants including the derivative position. The
Company has a strong system of internal control which
enables effective monitoring of adherence to Company’s
policies. The internal control measures are effectively
supplemented by regular internal audits.
The Company uses derivative instruments to manage
the exposure in foreign currency exchange rates, interest
rates and commodity prices. The Company does not
329
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
acquire or issue derivative financial instruments for
trading or speculative purposes. The Company does not
enter into complex derivative transactions to manage
the treasury and commodity risks. Both treasury and
commodities derivative transactions are normally in the
form of forward contracts, interest rate and currency
swaps and these are in line with the Company's policies.
Commodity price risk
The Company is exposed to the movement of base
metal commodity prices on the London Metal Exchange.
Any decline in the prices of the base metals that the
Company produces and sells will have an immediate and
direct impact on the profitability of the businesses. As
a general policy, the Company aims to sell the products
at prevailing market prices. The commodity price
risk in imported input commodity such as of Alumina,
anodes, etc., for our aluminium and copper business
respectively, is hedged on back-to-back basis ensuring
no price risk for the business. Hedging is used primarily
as a risk management tool and, in some cases, to secure
future cash flows in cases of high volatility by entering
into forward contracts or similar instruments. The
hedging activities are subject to strict limits set out by
the Board and to a strictly defined internal control and
monitoring mechanism. Decisions relating to hedging of
commodities are taken at the Executive Committee level,
basis clearly laid down guidelines.
Whilst the Company aims to achieve average LME prices
for a month or a year, average realised prices may not
necessarily reflect the LME price movements because of
a variety of reasons such as uneven sales during the year
and timing of shipments.
The Company is also exposed to the movement of
international crude oil price and the discount in the price
of Rajasthan crude oil to Brent price.
Financial instruments with commodity price risk are
entered into in relation to following activities:
economic hedging of prices realised on commodity
contracts
cash flow hedging of revenues, forecasted highly
probable transactions
Aluminium
The requirement of the primary raw material, alumina, is
partly met from own sources and the rest is purchased
primarily on negotiated price terms. Sales prices are
linked to the LME prices. At present the Company
on selective basis hedges the aluminium content in
outsourced alumina to protect its margins. The Company
also enters into hedging arrangements for its aluminium
sales to realise average month of sale LME prices.
Copper
The Company’s custom refining copper operations at
Silvassa is benefitted by a natural hedge except to the
extent of a possible mismatch in quotational periods
between the purchase of anodes / blisters and the sale
of finished copper. The Company’s policy on custom
smelting is to generate margins from Refining Charges
or "RC”, improving operational efficiencies, minimising
conversion cost, generating a premium over LME on sale
of finished copper, sale of by-products and from achieving
import parity on domestic sales. Hence, mismatches
in quotational periods are managed to ensure that the
gains or losses are minimised. The Company hedges this
variability of LME prices through forward contracts and
tries to make the LME price a pass-through cost between
purchases of anodes / blisters and sales of finished
products, both of which are linked to the LME price.
RCs are a major source of income for the Indian copper
refining operations. Fluctuations in Rcs are influenced
by factors including demand and supply conditions
prevailing in the market for smelters output. The
Company’s copper business has a strategy of securing a
majority of its anodes / blisters feed requirement under
long-term contracts with smelters / traders.
Iron ore
The Company sells its Iron Ore production from Goa on
the prevailing market prices and from Karnataka through
e-auction route as mandated by State Government of
Karnataka in India.
Oil and Gas
The prices of various crude oils are based upon the price
of the key physical benchmark crude oil such as Dated
Brent, West Texas Intermediate, and Dubai/Oman etc.
The crude oil prices move based upon market factors
like supply and demand. The regional producers price
their crude basis these benchmark crude with a premium
or discount over the benchmark based upon quality
differential and competitiveness of various grades.
Natural gas markets are evolving differently in important
geographical markets. There is no single global market
for natural gas. This could be owing to difficulties in large-
scale transportation over long distances as compared to
crude oil. Globally, there are three main regional hubs for
pricing of natural gas, which are USA (Henry Hub Prices),
UK (NBP Price) and Japan (imported gas price, mostly
linked to crude oil).
Provisionally priced financial instruments
On 31 March 2021, the value of net financial liabilities
linked to commodities (excluding derivatives) accounted
for on provisional prices was `394 Crore (31 March 2020:
liabilities of `334 Crore). These instruments are subject to
330
< BACK TO CONTENTS
price movements at the time of final settlement and the
final price of these instruments will be determined in the
financial year beginning 01 April 2021.
Set out below is the impact of 10% increase in LME prices
on pre-tax profit/ (loss) for the year and pre-tax total
equity as a result of changes in value of the Company’s
commodity financial instruments:
For the year ended 31 March 2021
Copper
For the year ended 31 March 2020
Copper
The above sensitivities are based on volumes, costs,
exchange rates and other variables and provide the
estimated impact of a change in LME prices on profit and
equity assuming that all other variables remain constant.
A 10% decrease in LME prices would have an equal and
opposite effect on the Company’s financial statements.
The impact on pre-tax profit/(loss) mentioned above
includes the impact of a 10% increase in closing copper
LME for provisionally priced copper concentrate
purchased at Copper division custom smelting
operations in India of `87 Crore loss (31 March 2020: `79
Crore loss), which is pass through in nature and as such
will not have any impact on the profitability.
Financial risk
The Company’s Board approved financial risk policies
include monitoring, measuring and mitigating the
liquidity, currency, interest rate and counterparty risk.
The Company does not engage in speculative treasury
activity but seeks to manage risk and optimize interest
and commodity pricing through proven financial
instruments.
(a) Liquidity
The Company requires funds both for short-term
operational needs as well as for long-term investment
programmes mainly in growth projects. The Company
generates sufficient cash flows from the current
operations which together with the available cash and
cash equivalents and short-term investments provide
liquidity both in the short-term as well as in the long-
term. The Company has been rated by CRISIL Limited
(CRISIL) and India Ratings and Research Private Limited
(India Rating) for its capital market issuance in the form
of CPs and NCDs and for its banking facilities in line with
Basel II norms.
Total Exposure
(713)
Effect on profit/
(loss) of a 10%
increase in the LME
(71)
Total Exposure
(794)
Effect on profit/
(loss) of a 10%
increase in the LME
(79)
(` in crores)
Effect on total
equity of a 10%
increase in the LME
-
(` in crores)
Effect on total
equity of a 10%
increase in the LME
-
CRISIL affirmed our rating for the Company’s long-term
bank facilities and its Non-Convertible Debentures (NCD)
programme to CRISIL AA / Stable during the year. India
Ratings has revised the outlook on Vedanta Limited’s
ratings to IND AA / Negative from IND AA/ Stable on
account of delay in deleveraging due to sharp fall in
commodity prices and delay in volume ramp-up in key
business segments. Vedanta Limited has the highest
short term rating on its working capital and Commercial
Paper Programme at A1+ from CRISIL and India Ratings.
During FY2020, Moodys downgraded Corporate Family
Rating of Vedanta Resources from Ba3 to B1 (and
the rating of senior unsecured notes from B2 to B3)
and subsequently placed the rating under review for
downgrade in March 2020 on account of expectation
of weaker credit metrics in low commodity price
environment in wake of Covid-19. On 28 July 2020,
Moody’s confirmed Vedanta Resources Limited’s B1
Corporate Family Rating and B3 rating on the senior
unsecured notes of the company and changed the
outlook on the rating to negative from ratings under
review for downgrade. The confirmation of the ratings
is driven by Moody’s expectation of stretched credit
profile in fiscal year 2021 in wake of Covid 19 pandemic
and recovery in credit metrics appropriate for current
rating in fiscal year 2022. The negative outlook takes into
account heightened refinancing risk in challenging market
conditions. Further to the downgrade of VRL by S&P to B
/ Stable in November 2019, S&P downgraded the ratings
to B- with stable outlook in March 2020 on account of
weakened liquidity and increased refinancing risk due to
volatility in commodity prices.
Anticipated future cash flows, together with undrawn
fund based committed facilities of `1,084 Crore, and
331
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
cash, bank and current investments of `2,994 Crore as at 31 March 2021, are expected to be sufficient to meet the
liquidity requirement of the Company in the near future.
The Company remains committed to maintaining a healthy liquidity, a low gearing ratio, deleveraging and strengthening
its balance sheet. The maturity profile of the Company’s financial liabilities based on the remaining period from the
date of balance sheet to the contractual maturity date is given in the table below. The figures reflect the contractual
undiscounted cash obligation of the Company.
As at 31 March 2021
Payments due by year
Borrowings *
Derivative financial liabilities
Lease liability
Trade Payables and other financial
liabilities **
Total
As at 31 March 2020
Payments due by year
Borrowings *
Derivative financial liabilities
Lease liability
Trade Payables and other financial
liabilities **
Total
<1 year
14,012
139
73
18,174
1-3 years
3-5 years
>5 years
10,633
50
27
190
7,353
-
13
-
9,903
-
20
-
(` in crores)
Total
41,901
189
133
18,364
32,398
10,900
7,366
9,923
60,587
<1 year
20,416
38
231
17,937
1-3 years
3-5 years
>5 years
16,105
9
26
47
3,725
-
23
-
7,033
-
22
-
(` in crores)
Total
47,279
47
302
17,984
38,622
16,187
3,748
7,055
65,612
*Includes Non-current borrowings, current borrowings, current maturities of non-current borrowings and committed interest payments on
borrowings and interest accrued on borrowings.
**Includes both Non-current and current financial liabilities and committed interest payment, as applicable. Excludes current maturities of
non-current borrowings and interest accrued on borrowings.
The Company had access to following funding facilities:
As at 31 March 2021
Funding facilities
Fund/non-fund based
As at 31 March 2020
Funding facility
Fund/non-fund based
Total Facility
37,590
Drawn
33,923
Total Facility
40,620
Drawn
33,281
(` in crores)
3,667
(` in crores)
Undrawn
7,339
Collateral
The Company has pledged financial instruments with carrying amount of `13,147 Crore (31 March 2020: `11,069 Crore)
and inventories with carrying amount of `5,555 Crore (31 March 2020: `5,689 Crore) as per the requirements specified
in various financial facilities in place. The counterparties have an obligation to release the securities to the Company
when financial facilities are surrendered.
(b) Foreign exchange risk
Fluctuations in foreign currency exchange rates may have an impact on the statement of profit and loss, the statement
of changes in equity, where any transaction references more than one currency or where assets/liabilities are
denominated in a currency other than the functional currency of the Company.
332
< BACK TO CONTENTS
Exposures on foreign currency loans are managed through the Company wide hedging policy, which is reviewed
periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The
Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged.
The Company’s presentation currency is the Indian Rupee (INR). The assets are located in India and the Indian Rupee
is the functional currency except for Oil and Gas business operations which have a dual functional currency. Natural
hedges available in the business are identified at each entity level and hedges are placed only for the net exposure.
Short-term net exposures are hedged progressively based on their maturity. A more conservative approach has been
adopted for project expenditures to avoid budget overruns, where cost of the project is calculated taking into account
the hedge cost. The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency
exchange rates is appropriately managed.
The following analysis is based on the gross exposure as at the reporting date which could affect the statement of profit
and loss. The exposure is mitigated by some of the derivative contracts entered into by the Company as disclosed
under the section on “Derivative financial instruments”.
The carrying amount of the Company's financial assets and liabilities in different currencies are as follows:
Currency
INR
USD
Others
Total
(` in crores)
As at 31 March 2021
As at 31 March 2020
Financial
Asset
12,319
3,591
153
16,063
Financial
liabilities
38,218
13,096
364
51,678
Financial
Asset
8,611
5,648
151
14,410
Financial
liabilities
40,961
17,290
32
58,283
The Company’s exposure to foreign currency arises where an entity holds monetary assets and liabilities denominated
in a currency different to the functional currency of the respective business, with US dollar being the major non-
functional currency.
The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure with a
simultaneous parallel foreign exchange rates shift in the foreign currencies by 10% against the functional currency of
the respective businesses.
Set out below is the impact of a 10% strengthening in the functional currencies of the respective businesses on pre-
tax profit/(loss) and pre-tax equity arising as a result of the revaluation of the Company’s foreign currency monetary
financial assets/liabilities:
For the year ended 31 March 2021
USD
INR
For the year ended 31 March 2020
USD
INR
Effect of
10% strengthening
of functional currency on
pre-tax profit/ (loss)
678
(282)
Effect of
10% strengthening
of functional currency on
pre-tax profit/ (loss)
860
93
(` in crores)
Effect of
10% strengthening
of foreign currency on
equity
-
-
(` in crores)
Effect of
10% strengthening
of foreign currency on
equity
-
-
333
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect on the
Company’s financial statements.
Interest rate risk
(c)
At 31 March 2021, the Company’s net debt of `26,314 Crore (31 March 2020: `33,985 Crore) comprises debt of `32,166
Crore (31 March 2020: `38,937 Crore) offset by cash, bank and investments of `5,852 Crore (31 March 2020: `4,952
Crore).
The Company is exposed to interest rate risk on short-term and long-term floating rate instruments and on the
refinancing of fixed rate debt. The Company’s policy is to maintain a balance of fixed and floating interest rate
borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The
borrowings of the Company are principally denominated in Indian Rupees and US dollars with mix of fixed and floating
rates of interest. The USD floating rate debt is linked to US dollar LIBOR and INR Floating rate debt to Bank’s base rate.
The Company has a policy of selectively using interest rate swaps, option contracts and other derivative instruments to
manage its exposure to interest rate movements. These exposures are reviewed by appropriate levels of management
on a monthly basis. The Company invests cash and liquid investments in short-term deposits and debt mutual funds,
some of which generate a tax-free return, to achieve the Company’s goal of maintaining liquidity, carrying manageable
risk and achieving satisfactory returns.
Floating rate financial assets are largely mutual fund investments which have debt securities as underlying assets. The
returns from these financial assets are linked to market interest rate movements; however the counterparty invests in
the agreed securities with known maturity tenure and return and hence has manageable risk.
The exposure of the Company’s financial assets as at 31 March 2021 to interest rate risk is as follows:
As at 31 March 2021
Financial Assets
Total
Floating rate
financial assets
Fixed rate financial
assets
16,063
2,016
4,292
The exposure of the Company’s financial liabilities as at 31 March 2021 to interest rate risk is as follows:
As at 31 March 2021
Financial Liabilities
Total
Floating rate
financial liabilities
Fixed rate financial
liabilities
51,679
18,916
20,795
The exposure of the Company’s financial assets as at 31 March 2020 to interest rate risk is as follows:
As at 31 March 2020
Financial Assets
Total
Floating rate
financial assets
Fixed rate financial
assets
14,410
1,121
4,466
The exposure of the Company’s financial liabilities as at 31 March 2020 to interest rate risk is as follows:
As at 31 March 2020
Financial Liabilities
Total
Floating rate
financial liabilities
Fixed rate financial
liabilities
58,283
19,174
27,260
(` in crores)
Non-interest
bearing financial
assets
9,755
(` in crores)
Non-interest
bearing financial
liabilities
11,968
(` in crores)
Non-interest
bearing financial
assets
8,823
(` in crores)
Non-interest
bearing financial
liabilities
11,849
Considering the net debt position as at 31 March 2021 and the investment in bank deposits, corporate bonds and debt
mutual funds, any increase in interest rates would result in a net loss and any decrease in interest rates would result
in a net gain. The sensitivity analysis below has been determined based on the exposure to interest rates for financial
instruments at the balance sheet date.
334
< BACK TO CONTENTS
The table below illustrates the impact of a 0.5% to 2.0%
movement in interest rates on floating rate financial
assets/ liabilities (net) on profit/(loss) and equity
assuming that the changes occur at the reporting
date and has been calculated based on risk exposure
outstanding as of that date. The year end balances are
not necessarily representative of the average debt
outstanding during the year. This analysis also assumes
that all other variables, in particular foreign currency
rates, remain constant.
Increase in interest rates
0.50%
1.00%
2.00%
Effect on pre-tax
profit/(loss) during
the year ended 31
March 2021
(85)
(169)
(338)
(` in crores)
Effect on pre-tax
profit/(loss) during
the year ended 31
March 2020
(90)
(181)
(361)
An equivalent reduction in interest rates would have an
equal and opposite effect on the Company’s financial
statements.
(d) Counterparty and concentration of credit risk
Credit risk refers to the risk that counterparty will default
on its contractual obligations resulting in financial loss to
the Company. The Company has adopted a policy of only
dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of
mitigating the risk of financial loss from defaults.
The Company is exposed to credit risk from trade
receivables, contract assets, investments, loans, other
financial assets, and derivative financial instruments.
Credit risk on receivables is limited as almost all credit
sales are against letters of credit and guarantees of banks
of national standing.
Moreover, given the diverse nature of the Company’s
businesses trade receivables are spread over a number
of customers with no significant concentration of credit
risk. The history of trade receivables shows a negligible
provision for bad and doubtful debts. Therefore,
the Company does not expect any material risk on
account of non-performance by any of the Company’s
counterparties.
The Company has clearly defined policies to mitigate
counterparty risks. For current investments,
counterparty limits are in place to limit the amount of
credit exposure to any one counterparty. This, therefore,
results in diversification of credit risk for our mutual
fund and bond investments. For derivative and financial
instruments, the Company attempts to limit the credit
risk by only dealing with reputable banks and financial
institutions.
The carrying value of the financial assets represents the
maximum credit exposure. The Company’s maximum
exposure to credit risk is `16,063 Crore and `14,410 Crore
as at 31 March 2021 and 31 March 2020 respectively.
The maximum credit exposure on financial guarantees
given by the Company for various financial facilities is
described in Note 36 on “Commitments, contingencies,
and guarantees”.
None of the Company’s cash equivalents, including time
deposits with banks, are past due or impaired. Regarding
trade receivables, loans and other financial assets (both
current and non-current), there were no indications as at
31 March 2021, that defaults in payment obligations will
occur except as described in Note 7 and 9 on allowance
for impairment of trade receivables and other financial
assets.
Of the year end trade receivables, loans and other financial assets (excluding bank deposits, site restoration fund and
derivatives) balance the following, though overdue, are expected to be realised in the normal course of business and
hence, are not considered impaired as at 31 March 2021 and 31 March 2020:
Particulars
Neither impaired nor past due
Past due but not impaired
- Less than 1 month
- Between 1–3 months
- Between 3–12 months
- Greater than 12 months
Total
As at
31 March 2021
6,464
(` in crores)
As at
31 March 2020
5,792
150
77
260
1,986
8,937
523
664
195
1,154
8,328
335
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Receivables are deemed to be past due or impaired with
reference to the Company’s normal terms and conditions
of business. These terms and conditions are determined
on a case to case basis with reference to the customer’s
credit quality and prevailing market conditions.
Receivables that are classified as ‘past due’ in the above
tables are those that have not been settled within the
terms and conditions that have been agreed with that
customer. The Company based on past experiences does
not expect any material loss on its receivables.
The credit quality of the Company’s customers is
monitored on an ongoing basis. Where receivables have
been impaired, the Group actively seeks to recover the
amounts in question and enforce compliance with credit
terms.
Movement in allowances for Financial Assets (Trade receivables and financial assets - others)
The changes in the allowance for financial assets (current and non-current) is as follows:
Particulars
Trade receivables
As at 01 April 2019
Allowance made during the year
Reversals/ write-off during the year
Exchange differences
As at 31 March 2020
Allowance made during the year
Exploration cost written off
Exchange differences
As at 31 March 2021
525
16
(17)
0
524
61
-
-
585
Financial assets –
Others
248
402
-
21
671
61
3
(5)
730
(` in crores)
Financial assets –
Loans
-
-
-
-
-
5
-
-
5
D. Derivative financial instruments
The Company uses derivative instruments as part
of its management of exposure to fluctuations in
foreign currency exchange rates, interest rates and
commodity prices. The Company does not acquire or
issue derivative financial instruments for trading or
speculative purposes. The Company does not enter into
complex derivative transactions to manage the treasury
and commodity risks. Both treasury and commodities
derivative transactions are normally in the form of
forward contracts and these are subject to the Company
guidelines and policies.
The fair values of all derivatives are separately recorded in
the balance sheet within current and non-current assets
and liabilities. Derivatives that are designated as hedges
are classified as current or non-current depending on the
maturity of the derivative.
The use of derivatives can give rise to credit and market
risk. The Company tries to control credit risk as far as
possible by only entering into contracts with reputable
banks and financial institutions. The use of derivative
instruments is subject to limits, authorities and regular
monitoring by appropriate levels of management.
The limits, authorities and monitoring systems are
periodically reviewed by management and the Board.
The market risk on derivatives is mitigated by changes
in the valuation of the underlying assets, liabilities
or transactions, as derivatives are used only for risk
management purposes.
(i) Cash flow hedges
The Company enters into forward exchange and
commodity price contracts for hedging highly probable
forecast transaction and account for them as cash
flow hedges and states them at fair value. Subsequent
changes in fair value are recognized in equity through OCI
until the hedged transaction occurs, at which time, the
respective gain or losses are reclassified to profit or loss.
These hedges have been effective for the year ended 31
March 2021.
The Company uses foreign exchange contracts from time
to time to optimize currency risk exposure on its foreign
currency transactions. The Company hedged part of
its foreign currency exposure on capital commitments
during the year ended 2020. Fair value changes on such
forward contracts are recognized in other comprehensive
income.
The majority of cash flow hedges taken out by the
Company during the year comprise non-derivative
hedging instruments for hedging the foreign exchange
rate of highly probable forecast transactions and
336
< BACK TO CONTENTS
commodity price contracts for hedging the commodity
price risk of highly probable forecast transactions.
The cash flows related to above are expected to occur
during the year ended 31 March 2022 and consequently
may impact profit or loss for that year depending upon
the change in the commodity prices and foreign exchange
rates movements. For cash flow hedges regarded as basis
adjustments to initial carrying value of the property,
plant and equipment, the depreciation on the basis
adjustments made is expected to affect profit or loss
over the expected useful life of the property, plant and
equipment.
(ii) Fair value hedge
The fair value hedges relate to forward covers taken to
hedge currency exposure and commodity price risks.
The Company’s sales are on a quotational period basis,
generally one month to three months after the date of
delivery at a customer’s facility. The Company enters into
forward contracts for the respective quotational period
to hedge its commodity price risk based on average LME
prices. Gains and losses on these hedge transactions are
substantially offset by the amount of gains or losses on
the underlying sales. Net gains and losses are recognized
in the statement of profit and loss.
The Company uses foreign exchange contracts from
time to time to optimize currency risk exposure on its
foreign currency transactions. Fair value changes on such
forward contracts are recognized in the statement of
profit and loss.
(iii) Non- designated economic hedge
The Company enters into derivative contracts which are
not designated as hedges for accounting purposes, but
provide an economic hedge of a particular transaction
risk or a risk component of a transaction. Hedging
instruments include copper, aluminium future contracts
on the LME and certain other derivative instruments.
Fair value changes on such derivative instruments are
recognized in the statement of profit and loss.
The fair value of the Company’s derivative positions recorded under derivative financial assets and derivative financial
liabilities are as follows:
As at 31 March 2021
As at 31 March 2020
Assets
Liabilities
Assets
Liabilities
(` in crores)
Derivative Financial Instruments
Current
Cash flow hedge*
- Commodity contracts
- Forward foreign currency contracts
- Interest rate swap
Fair Value hedge
- Commodity contracts
- Forward foreign currency contracts
Non - qualifying hedges/economic hedge
- Commodity contracts
- Forward foreign currency contracts
- Cross currency swap
Total
Non-current
Cash flow hedge
- Interest rate swap
Fair value hedge
- Forward foreign currency contracts
Total
3
-
-
39
14
-
10
-
66
-
-
-
38
-
5
3
54
-
40
-
140
5
45
50
53
-
-
100
173
-
221
1
548
-
3
3
* Refer statement of profit and loss and statement of changes in equity for the changes in the fair value of cash flow hedges.
-
-
-
11
19
-
7
1
38
8
1
9
337
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
E. Derivative contracts entered into by the Company and outstanding as at Balance Sheet date:
22 PROVISIONS
(i) To hedge currency risks and interest related risks, the Company has entered into various derivatives contracts.
The category wise break up of amount outstanding as at Balance Sheet date is given below:
Particulars
Forex forward cover (buy)
Forex forward cover (sell)
(ii) For hedging commodity related risks:- Category wise break up is given below.
As at
31 March 2021
10,070
188
(` in crores)
As at
31 March 2020
12,220
2
(` in crores)
Particulars
Forwards / Futures
Copper (MT)
Gold (Oz)
Silver (Oz)
Aluminium (MT)
21 OTHER LIABILITIES
Particulars
Amount payable to owned
post-employment benefit
trust (Refer note 37)
Other statutory Liabilities a
Deferred government grant b
Advance from customers c
Advance from related party
(Refer note 37) c
Other liabilities
Total
As at 31 March 2021
As at 31 March 2020
Purchases
Sales
Purchases
Sales
6,900
-
17,418
1,825
24,150
18,683
95,596
67,075
1,950
-
6,018
9,575
28,050
22,492
100,320
37,450
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
-
15
15
-
8
-
2,360
-
-
-
2,360
883
78
4,496
-
117
5,589
883
2,438
4,496
-
117
7,949
-
2,369
168
-
2
2,539
977
74
6,223
3
122
7,407
(` in crores)
Total
8
977
2,443
6,391
3
124
9,946
(a) Other statutory liabilities mainly includes contribution to PF, ESIC, withholding taxes, goods & service tax, VAT etc.
(b)
Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme and
Special Economic Zone (SEZ) scheme on purchase of property, plant and equipments accounted for as government grant and being
amortised over the useful life of such assets.
Advance from customers are contract liabilities to be settled through delivery of goods. The amount of such balances as on 01 April
2019: `6,787 Crore. During the current year, the Company has refunded `Nil Crore (FY 2019-20:`Nil crore) to the customers and
recognised revenue of `6,244 Crore (FY 2019-20: `6,777 Crore) out of such opening balances. All other changes are either due to receipt
of fresh advances or exchange differences.
(c)
338
Particulars
Provision for employee
benefits a
- Retirement Benefit
(Refer note 23)
- Others
Provision for restoration,
rehabilitation and
environmental costs b,c
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Total
(` in crores)
-
-
1,169
42
56
-
42
56
1,169
-
-
1,185
1,169
98
1,267
1,185
44
51
-
95
44
51
1,185
1,280
a)
b)
Provision for employee benefits includes gratuity, compensated absences, deferred cash bonus etc.
The movement in provisions for restoration, rehabilitation and environmental costs is as follows [Refer note 3(a)(P)]:
Particulars
At 01 April 2019
Unwinding of discount (Refer note 30)
Revision in estimates
Exchange differences
At 31 March 2020
Unwinding of discount (Refer note 30)
Revision in estimates
Exchange differences
At 31 March 2021
(` in crores)
Restoration,
rehabilitation and
environmental
costs (Refer c)
986
31
83
85
1,185
23
(15)
(24)
1,169
c) Restoration, rehabilitation and environmental
costs
The provisions for restoration, rehabilitation and
environmental liabilities represent the management’s
best estimate of the costs which will be incurred in the
future to meet the Company’s obligations under existing
Indian law and the terms of the Company’s exploration
and other licences and contractual arrangements.
The principal restoration and rehabilitation provisions
are recorded within oil & gas business where a legal
obligation exists relating to the oil and gas fields, where
costs are expected to be incurred in restoring the site of
production facilities at the end of the producing life of
an oil field. The Company recognises the full cost of site
restoration as a liability when the obligation to rectify
environmental damage arises.
These amounts are calculated by considering discount
rates within the range of 2% to 3%, and become payable
at the end of the producing life of an oil field and are
expected to be incurred over a period of twenty one
years.
An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
production from a producing field.
23 EMPLOYEE BENEFIT PLANS
The Company participates in defined contribution and
benefit plans, the assets of which are held (where funded)
in separately administered funds.
For defined contribution plans the amount charged to
the statement of profit and loss is the total amount of
contributions payable in the year.
339
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation separately
each year for each plan using the projected unit credit method by independent qualified actuaries as at the year end.
Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year.
Defined contribution plans
i)
The Company contributed a total of `62 Crore for the year ended 31 March 2021 and `68 Crore for the year ended 31
March 2020 to the following defined contribution plans.
Particulars
Employer’s contribution to recognised provident fund and family pension fund
Employer’s contribution to superannuation
Employer's contribution to National Pension Scheme (NPS)
Total
Year ended
31 March 2021
47
15
0
62
(` in crores)
Year ended
31 March 2020
50
18
-
68
Central recognised provident fund
In accordance with the ‘The Employee's Provident Funds
and Miscellaneous Provisions Act, 1952’, employees are
entitled to receive benefits under the Provident Fund.
Both the employee and the employer make monthly
contributions to the plan at a predetermined rate (12%
for the year ended 31 March 2020 and 31 March 2019)
of an employee’s basic salary. All employees have an
option to make additional voluntary contributions.
These contributions are made to the fund administered
and managed by the Government of India (GOI) or to
independently managed and approved funds. The
Company has no further obligations under the fund
managed by the GOI beyond its monthly contributions
which are charged to the statement of profit and loss in
the period they are incurred.
Family pension fund
The Pension Fund was established in 1995 and is managed
by the Government of India. The employee makes no
contribution to this fund but the employer makes a
contribution of 8.33% of salary each month subject to a
specified ceiling per employee. This is provided for every
permanent employee on the payroll.
At the age of superannuation, contributions ceases and
the individual receives a monthly payment based on the
level of contributions through the years, and on their
salary scale at the time they retire, subject to a maximum
ceiling of salary level. The Government funds these
payments, thus the Company has no additional liability
beyond the contributions that it makes, regardless of
whether the central fund is in surplus or deficit.
Superannuation
Superannuation, another pension scheme applicable
in India, is applicable only to senior executives. The
Company holds a policy with Life Insurance Corporation
of India (“LIC”), to which it contributes a fixed amount
relating to superannuation and the pension annuity
is met by LIC as required, taking into consideration
340
the contributions made. The Company has no further
obligations under the scheme beyond its monthly
contributions which are charged to the statement of
profit and loss in the year they are incurred.
National Pension Scheme
National Pension Scheme is a retirement savings
account for social security and welfare applicable for
executives covered under the superannuation benefit
of Vedanta Limited, on a choice basis. It was introduced
to enable employees to select the treatment of
superannuation component of their fixed salaries and
avail the benefits offered by National Pension Scheme
launched by Government of India. Vedanta Limited
holds a corporate account with one of the pension fund
managers authorized by the Government of India to
which the Company contributes a fixed amount relating
to superannuation and the pension annuity will be met
by the fund manager as per rules of National Pension
Scheme. The Company has no further obligations under
the scheme beyond its monthly contributions which are
charged to the statement of profit and loss in the year
they are incurred.
ii) Defined benefit plans
(a) Contribution to provident fund trust (the "trust")
The provident fund of the Iron Ore division is exempted
under Section 17 of The Employee's Provident Funds and
Miscellaneous Provisions Act, 1952. Conditions for grant
of exemption stipulates that the employer shall make
good deficiency, if any, between the return guaranteed
by the statute and actual earning of the Fund. Based
on actuarial valuation in accordance with Ind AS 19 and
Guidance note issued by Institute of Actuaries of India
for interest rate guarantee of exempted provident fund
liability of employees, there is no interest shortfall in the
funds managed by the trust and hence there is no further
liability as on 31 March 2021 and 31 March 2020. Having
< BACK TO CONTENTS
regard to the assets of the Fund and the return on the investments, the Company does not expect any deficiency in the
foreseeable future.
The Company contributed a total of `6 Crore for the year ended 31 March 2021 and `4 Crore for the year ended 31
March 2020, The present value of obligation and the fair value of plan assets of the trust are summarized below.
Particulars
Fair value of plan assets
Present value of defined benefit obligations
Net liability arising from defined benefit obligation of trust
Percentage allocation of plan assets of trust
Assets by category
Government Securities
Debentures / bonds
Equity
Fixed deposits
Year ended
31 March 2021
233
(225)
Nil
(` in crores)
Year ended
31 March 2020
208
(202)
Nil
Year ended
31 March 2021
59%
38%
3%
0%
Year ended
31 March 2020
59%
36%
5%
0%
The remeasurement loss of `6 Crore and `7 Crore for the year ended 31 March 2021 and 31 March 2020 respectively
have been charged to other comprehensive income (OCI).
(b) Gratuity plan
In accordance with the Payment of Gratuity Act, 1972, the Company contributes to a defined benefit plan (the “Gratuity
Plan”) covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees
at retirement, disability or termination of employment being an amount based on the respective employee’s last drawn
salary and the number of years of employment with the Company. The Gratuity plan is a funded plan and the Company
makes contribution to recognised funds in India.
Based on actuarial valuations conducted as at year end using the projected unit credit method, a provision is recognised
in full for the benefit obligation over and above the funds held in the Gratuity Plan.
The iron ore and oil & gas division of the Company have constituted a trust recognised by Indian Income Tax Authorities
for gratuity to employees, contributions to the trust are funded with Life Insurance Corporation of India (LIC) and ICICI
Prudential Life Insurance Company Limited.
Principal actuarial assumptions
Principal actuarial assumptions used to determine the present value of the Gratuity plan obligation are as follows:
Particulars
Discount rate
Expected rate of increase in compensation level of covered employees
In service mortality
Post retirement mortality
Amount recognised in the balance sheet consists of:
Particulars
Fair value of plan assets
Present value of defined benefit obligations
Net liability arising from defined benefit obligation
Year ended
31 March 2021
6.90
2%-10%
IALM (2012-14)
LIC(1996-98)
Ultimate
Year ended
31 March 2020
6.80%
2%-10%
IALM (2012-14)
LIC(1996-98)
Ultimate
Year ended
31 March 2021
146
(188)
(42)
(` in crores)
Year ended
31 March 2020
145
(189)
(44)
341
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Amount recognised in the statement of profit and loss in respect of the Gratuity plan are as follows:
Particulars
Current service cost
Net interest cost
Components of defined benefit costs recognised in profit or loss
Year ended
31 March 2021
17
3
20
(` in crores)
Year ended
31 March 2020
18
4
22
Amount recognised in other comprehensive income in respect of the Gratuity plan are as follows:
Particulars
Re-measurement of the net defined benefit obligation:-
Actuarial losses / (gains) arising from demographic adjustments
Actuarial losses / (gains) arising from experience adjustments
Actuarial losses / (gains) arising from changes in financial assumptions
Losses / (gains) on plan assets
Components of defined benefit costs recognised in other comprehensive income
Movement in present value of the Gratuity plan:
Particulars
Opening balance
Current service cost
Benefits paid
Interest cost
Actuarial losses / (gains) arising from changes in assumptions
Closing balance
Movement in the fair value of Gratuity plan assets is as follows:
Particulars
Opening balance
Contributions received
Benefits paid
Re-measurement loss arising from return on plan assets
Interest income
Closing balance
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
-
(8)
-
2
(6)
(1)
(6)
10
1
4
Year ended
31 March 2021
189
17
(23)
13
(8)
188
Year ended
31 March 2021
145
16
(23)
(2)
10
146
(` in crores)
Year ended
31 March 2020
178
18
(24)
14
3
189
(` in crores)
Year ended
31 March 2020
131
29
(24)
(1)
10
145
The above plan assets have been invested in the qualified insurance policies.
The actual return on plan assets was `8 Crore for the year ended 31 March 2021 and `9 Crore for the year ended 31
March 2020.
The weighted average duration of the defined benefit obligation is 16.36 years and 16.5 years as at 31 March 2021 and
31 March 2020 respectively.
The Company expects to contribute `21 Crore to the funded defined benefit plans in during the year ended 31 March
2022.
342
< BACK TO CONTENTS
Sensitivity analysis
Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined
benefit obligations and based on reasonably possible changes of the respective assumptions occurring at the end of
the reporting period while holding all other assumptions constant.
Increase/(Decrease) in defined benefit obligation
Discount rate
Increase by 0.50%
Decrease by 0.50%
Expected rate of increase in compensation level of covered employees
Increase by 0.50%
Decrease by 0.50%
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
(9)
9
9
(9)
(8)
9
9
(8)
The above sensitivity analysis may not be representative
of the actual benefit obligation as it is unlikely that the
change in assumptions would occur in isolation of one
another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present
value of defined benefit obligation has been calculated
using the projected unit credit method at the end of
reporting period, which is the same as that applied
in calculating the defined benefit obligation liability
recognized in the balance sheet.
Risk analysis
The Company is exposed to a number of risks in the
defined benefit plans. Most significant risks pertaining to
defined benefit plans and management's estimation of
the impact of these risks are as follows:
Investment risk
The Gratuity plan is funded with Life Insurance
Corporation of India (LIC) and ICICI Prudential Life (ICICI).
The Company does not have any liberty to manage the
fund provided to LIC and ICICI.
The present value of the defined benefit plan obligation is
calculated using a discount rate determined by reference
to Government of India bonds. If the return on plan asset
is below this rate, it will create a plan deficit.
24 EMPLOYEE BENEFITS EXPENSE a,b
Interest risk
A decrease in the interest rate on plan assets will increase
the net plan obligation.
Longevity risk / Life expectancy
The present value of the defined benefit plan obligation
is calculated by reference to the best estimate of the
mortality of plan participants both during and at the end
of the employment. An increase in the life expectancy of
the plan participants will increase the plan obligation.
Salary growth risk
The present value of the defined benefit plan obligation
is calculated by reference to the future salaries of
plan participants. An increase in the salary of the plan
participants will increase the plan obligation.
Code on Social Security, 2020
The Code on Social Security, 2020 (‘Code’) relating
to employee benefits during employment and post-
employment benefits received Presidential assent in
September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will
come into effect has not been notified and the final rules/
interpretation have not yet been issued. The Company
will assess the impact of the Code when it comes into
effect and will record any related impact in the period the
Code becomes effective.
Particulars
Salaries and Wages
Share based payments (Refer note 25)
Contributions to provident and other funds (Refer Note 23)
Staff welfare expenses
Less: Cost allocated/directly booked in Joint ventures
Total
a.
b.
Net of recoveries of `38 Crore ( 31 March 2020: `66 Crore) from subsidiaries.
Net of capitalisation of `46 Crore ( 31 March 2020: 59 Crore).
Year ended
31 March 2021
1,241
36
85
71
(530)
903
(` in crores)
Year ended
31 March 2020
1,119
40
90
92
(576)
765
343
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
25 SHARE BASED PAYMENTS
The Company offers equity based and cash based option
plans to its employees, officers and directors through
the Company's stock option plan introduced in 2016 and
Cairn India's stock option plan now administered by the
Company pursuant to merger with the Company.
The Vedanta Limited Employee Stock Option Scheme
(ESOS) 2016
The Company introduced an Employee Stock Option
Scheme 2016 (“ESOS”), which was approved by the
Vedanta Limited shareholders to provide equity settled
incentive to all employees of the Company including
subsidiary companies. The ESOS scheme includes tenure
based, business performance based (EBITDA) and market
performance based stock options. The maximum value
of options that can be awarded to members of the wider
management group is calculated by reference to the
grade average cost-to-company ("CTC") and individual
grade of the employee. The performance conditions
attached to the option is measured by comparing
Company’s performance in terms of Total Shareholder
Return ("TSR") over the performance period with the
performance of two group of comparator companies (i.e.
Indian and global comparator companies) defined in the
scheme. The extent to which an option vests will depend
on the Company's TSR rank against a group or groups of
peer companies at the end of the performance period
and as moderated by the Remuneration Committee. The
ESOS schemes are administered through VESOS trust
and have underlying Vedanta Limited equity shares.
Options granted during the year ended 31 March 2021
includes business performance based, sustained
individual performance based, management discretion
and fatality multiplier based stock options. Business
performances will be measured using Volume, Cost, Net
Sales Realisation, EBITDA, ECG & Carbon footprint or a
combination of these for the respective business/ SBU
entities.
Options granted during the year ended 31 March 2020
includes business performance based, sustained
individual performance based and market performance
based stock options. Business performances will be
measured using Volume, Cost, Net Sales Realisation,
EBITDA or a combination of these for the respective
business/ SBU entities.
The exercise price of the options is `1 per share and the
performance period is three years, with no re-testing
being allowed.
The details of share options for the year ended 31 March 2021 is presented below:
Options
outstanding
01 April 2020
Options
granted
during the
year
1,068,516
7,027,925
11,126
11,420,046
178,326
15,881,330
-
-
-
-
-
-
Financial Year
of Grant
Exercise Period
2016-17
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
2020-21
2020-21
15 December 2019 -
14 June 2020
01 September 2020 -
28 February 2021
16 October 2020 -
15 April 2021
01 November 2021 -
30 April 2022
Cash settled
29 November 2022 -
28 May 2023
Cash settled
06 November 2023 -
05 May 2024
Cash settled
Options
transferred
(to)/ from
Parent/ fellow
subsidiaries
-
Options
forfeited
during the
year
Options
exercised
during the
year*
Options
outstanding 31
March 2021
Options
exercisable
31 March
2021
8,648
1,059,868
-
-
-
5,514,169
1,136,816
376,940
376,940
-
11,126
-
1,507,806
(15,360)
-
63,880
2,309,052
-
-
-
-
-
-
9,912,240
99,086
13,572,278
80,050
12,711,112
735,370
-
12,711,112
30,430
-
685,750
-
-
36,322,639
87,609
12,798,721
-
15,070
-
10,100,431
-
2,196,684
87,609
36,839,315
-
-
-
-
-
-
-
< BACK TO CONTENTS
The details of share options for the year ended 31 March 2020 is presented below:
FinancialYear
of Grant
Exercise Period
Options
outstanding
01 April 2019
Options
granted during
the year
Options
transferred from
Parent/ fellow
subsidiaries
-
Options
forfeited
during the
year
4,819,269
Options
exercised
during the
year*
620,441
Options
outstanding
31 March 2020
Options
exercisable 31
March 2020
1,068,516
1,068,516
2016-17
2017-18
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
15 December 2019 -
14 June 2020
01 September 2020 -
28 February 2021
16 October 2020 -
15 April 2021
01 November 2020 -
30 April 2021
01 November 2021 -
30 April 2022
Cash settled
29 November 2023 -
28 May 2024
Cash settled
6,508,226
8,274,393
11,126
27,638
13,566,200
-
-
-
-
-
-
-
-
-
1,246,468
-
27,638
-
-
-
7,027,925
11,126
-
2,146,154
-
11,420,046
224,840
-
-
16,713,640
100,470
-
146,984
832,310
-
-
178,326
15,881,330
-
28,612,424
847,830
17,561,470
-
100,470
112,460
9,331,283
-
620,441
735,370
36,322,639
-
1,068,516
-
-
-
-
-
-
*excludes 58,420 options exercised during the year regarding which the transaction could not be completed before 31 March 2020 and hence,
the corresponding shares were were not transferred to the concerned employees.
The fair value of all options has been determined at the
date of grant of the option allowing for the effect of any
market-based performance conditions. This fair value,
adjusted by the Group’s estimate of the number of
options that will eventually vest as a result of non-market
conditions, is expensed over the vesting period.
Business Performance-Based and Sustained Individual
Performance-Based Options:
The fair values of stock options following these types
of vesting conditions have been estimating using the
Black-Scholes-Merton Option Pricing model. The value
arrived at under this model has been then multiplied by
the expected % vesting based on business performance
conditions (only for business performance-based
options) and the expected multiplier on account of
sustained individual performance (for both type of
options). The inputs used in the Black-Scholes-Merton
Option Pricing model include the share price considered
as of the valuation date, exercise price as per the scheme/
plan of the options, expected dividend yield (estimated
based on actual/ expected dividend trend of the
company), expected tenure (estimated as the remaining
vesting period of the options), the risk-free rate
(considered as the zero coupon yield as of the valuation
date for a term commensurate with the expected tenure
of the options) and expected volatility (estimated based
on the historical volatility of the return in company’s
share prices for a term commensurate with the expected
tenure of the options). The exercise period of 6 months
post vesting period has not been considered as the
options are expected to be exercised immediately post
the completion of the vesting period.
Total Shareholder Returns-Based Options:
The fair values of stock options following this type of
vesting condition has been estimated using the Monte
Carlo Simulation method. This method has been used
to simulate the expected share prices for Vedanta
Limited and the companies of the comparator group
over the vesting period of the options. Based on the
simulated prices, the expected pay-off at the end of
the vesting period has been estimated and present
valued to the valuation date. Further, based on the
simulated share prices and expected dividends the
relative rank of Vedanta Limited’s share price return has
been estimated vis-à-vis the Indian and Global Group
of the comparator group. This rank has been used to
estimate expected % vesting of the options under this
type of vesting condition. The inputs to the monte carlo
simulation method include expected tenure (estimated
as the remaining vesting period of the options), the
risk-free rate (considered as the zero coupon yield as
of the valuation date for a term commensurate with
the expected tenure of the options), expected dividend
yield (estimated based on the actual dividend trend of
the companies), expected volatility (estimated based
on the historical volatility of the return in the company’s
share prices for a term commensurate with the expected
tenure of the options). The exercise period of 6 months
post the vesting period has not been considered as the
options are expected to be exercised immediately post
the completion of the vesting period.
344
345
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
The assumptions used in the calculations of the charge in respect of the ESOS options granted during the year ended
31 March 2021 and 31 March 2020 are set out below:
Scheme
Range of exercise
price in `
Particulars
Number of Options
Exercise Price
Share Price at the date of grant
Contractual Life
Expected Volatility
Expected option life
Expected dividends
Risk free interest rate
Expected annual forfeitures
Fair value per option granted (Non-market performance based)
Fair value per option granted (Market performance based)
Year ended
31 March 2021
ESOS 2020
Cash settled - 87,609
equity settled -
1,27,11,112
`1
`228.75
2 years and 7 months
49.28%
2 years and 7 months
6.80%
4.84%
10%p.a.
`151
NA
Year ended
31 March 2020
ESOS 2019
Cash settled - 847,830
equity settled -
1,67,13,640
`1
`144.60
3 years
36.6%
3 years
7.96%
5.68%
10%p.a.
`102.30
`72.12
Weighted average share price at the date of exercise of stock options was `131.08 (31 March 2020: 126.02)
The weighted average remaining contractual life for the share options outstanding was 2.03 years (31 March 2020: 2.28
years).
The Company recognised total expenses of `58 Crore (31 March 2020: `75 Crore) related to equity settled share
based payment transactions for the year ended 31 March 2021 out of which `19 Crore (31 March 2020: `33 Crore) was
recovered from group companies. The total expense recognised on account of cash settled share based plan during
the year ended 31 March 2021 is `1 Crore (31 March 2020: `0 Crore) and the carrying value of cash settled share based
compensation liability as at 31 March 2021 is `1 Crore (31 March 2020: `0 Crore).
Employee stock option plans of erstwhile Cairn India Limited:
The Company has provided CIESOP share based payment scheme to its employees.
CIESOP plan
There are no specific vesting conditions under CIESOP plan other than completion of the minimum service period of 3
years from the date of grant. Phantom options are exercisable proportionate to the period of service rendered by the
employee subject to completion of one year. The exercise period is 7 years from the vesting date.
Details of employees stock option plans is presented below
CIESOP Plan
Outstanding at the beginning of the year
Granted during the year
Expired during the year
Exercised during the year
Forfeited / cancelled during the year
Outstanding at the end of the year
Exercisable at the end of the year
Year ended 31 March 2021
Year ended 31 March 2020
Number of options
5,341,740
Nil
1,082,229
Nil
944,337
3,315,174
3,315,174
Weighted average
exercise price in `
288.23
NA
291.25
NA
288.00
287.31
287.3
Number of options
6,477,059
Nil
658,663
Nil
476,656
5,341,740
5,341,740
Weighted average
exercise price in `
279.2
NA
200.1
NA
288.1
288.2
288.2
Weighted average
remaining
contractual life of
options (in years)
0.80
Weighted average
exercise price in `
286.85-287.75
The details of exercise price for stock options outstanding as at 31
March 2021 are:
CIESOP Plan
The details of exercise price for stock options outstanding as at 31
March 2020 are:
CIESOP Plan
Out of the total expense of `38 Crore (31 March 2020: `42 Crore) pertaining to above options for the year ended 31
March 2021, the Company has capitalised `2 Crore (31 March 2020: `2 Crore) expense for the year ended 31 March
2021.
286.85-291.25
1.46
287.3
288.2
26 REVENUE FROM OPERATIONS
Particulars
Sale of products
Sale of services
Total
Year ended
31 March 2021
37,019
101
37,120
(` in crores)
Year ended
31 March 2020
34,986
431
35,417
a)
b)
Revenue from sale of products and from sale of
services for the year ended 31 March 2021 includes
revenue from contracts with customers of `36,859
Crore (FY 2019-20: `35,125 Crore) and a net gain
on mark-to-market of `261 Crore (FY 2019-20: loss
of `346 Crore) on account of gains/ losses relating
to sales that were provisionally priced as at the
beginning of the year with the final price settled in
the current year, gains/ losses relating to sales fully
priced during the year, and marked to market gains/
losses relating to sales that were provisionally priced
as at the end of the year.
Government of India (GoI) vide Office Memorandum
(“OM”) No. O-19025/10/2005-ONG-DV dated
01 February 2013 allowed for Exploration in the
Mining Lease Area after expiry of Exploration
period and prescribed the mechanism for recovery
of such Exploration Cost incurred. Vide another
Memorandum dated 24 October 2019, GoI clarified
that all approved Exploration costs incurred
on Exploration activities, both successful and
unsuccessful, are recoverable in the manner as
prescribed in the OM and as per the provisions of
PSC. Accordingly, during the previous year, the
Company had recognized revenue of `638 Crore,
for past exploration costs, through increased
share in the joint operations revenue as the Group
believes that cost recovery mechanism prescribed
under OM for profit petroleum payable to GOI is not
applicable to its Joint operation partner, view which
is also supported by an independent legal opinion.
However, the Joint operation partner carries a
different understanding and the matter is pending
resolution.
c)
Majority of the Company’s sales are against
advance or are against letters of credit/ cash
against documents/ guarantees of banks of national
standing. Where sales are made on credit, the
amount of consideration does not contain any
significant financing component as payment terms
are within three months.
As per the terms of the contract with its customers,
either all performance obligations are to be
completed within one year from the date of such
contracts or the Company has a right to receive
consideration from its customers for all completed
performance obligations. Accordingly, the Company
has availed the practical expedient available under
paragraph 121 of Ind AS 115 and dispensed with the
additional disclosures with respect to performance
obligations that remained unsatisfied (or partially
unsatisfied) at the balance sheet date. Further,
since the terms of the contracts directly identify
the transaction price for each of the completed
performance obligations there are no elements of
transaction price which have not been included in
the revenue recognised in the financial statements.
Further, there is no material difference between the
contract price and the revenue from contract with
customers.
346
347
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
27 OTHER OPERATING INCOME
Particulars
Export incentives
Scrap sales
Miscellaneous income
Total
28 OTHER INCOME
Particulars
Net gain on investments measured at FVTPL
Interest income from investments measured at FVTPL
Interest income from financial assets at amortised cost
- Bank Deposits
- Loans
- Others
Interest on income tax refund
Dividend income from
- Financial Assets at FVTPL
- Financial Assets at FVOCI
- Investment in Subsidiaries
Deferred government grant income
Miscellaneous income
Total
Year ended
31 March 2021
173
55
92
320
Year ended
31 March 2021
93
40
68
81
123
47
-
2
10,369
75
50
10,948
(` in crores)
Year ended
31 March 2020
291
76
74
441
(` in crores)
Year ended
31 March 2020
152
119
71
102
163
-
15
2
2,125
74
47
2,870
29 CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE
Particulars
Opening Stock:
Finished Goods
Work in progess
Total
Add / (Less): Foreign exchange translation difference
Less: Closing Stock
Finished Goods
Work in progess
Total
Sub-total
Add / (Less): Copper Concentrate (raw material) sold during the year
Changes in Inventory
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
465
1,836
2,301
(2)
548
1,681
2,229
70
-
70
880
1,195
2,075
4
465
1,835
2,300
(221)
1,651
1,430
348
< BACK TO CONTENTS
30 FINANCE COST
Particulars
Interest expense on financial liabilities at amortised cost b
Other finance costs
Net interest on defined benefit arrangement
Unwinding of discount on provisions (Refer note 22)
Less: Allocated to Joint venture
Less: Capitalisation of finance costs a (Refer note 5)
Total
Year ended
31 March 2021
3,293
110
3
23
(3)
(233)
3,193
(` in crores)
Year ended
31 March 2020
3,863
111
4
31
(8)
(673)
3,328
a)
b)
Interest rate of 6.91% (31 March 2020: 7.71%) was used to determine the amount of general borrowing costs eligible for capitalization in
respect of qualifying asset for the year ended 31 March 2021.
Includes interest expense on lease liabilities for the year ended 31 March 2021 `14 Crore (31 March 2020: `16 Crore).
31 OTHER EXPENSES *
Particulars
Cess on crude oil
Royalty
Consumption of stores and spare parts
Repairs to plant and equipment
Carriage
Mine Expenses
Net loss on foreign currency transactions and translation
Other Selling Expenses
Repairs to building
Insurance
Repairs others
Loss on sale/ discard of property, plant and equipment (net)
Rent d
Rates and taxes
Exploration costs written off (Refer note 5)
Directors sitting fees and commission
Remuneration to Auditors a
Provision for doubtful advances/ expected credit loss
Bad debts written off
Share of expenses in producing oil & gas blocks
Donation
Miscellaneous expenses b,c
Less: Cost allocated/directly booked in Joint ventures
Total
* Net of recoveries of `57 Crore (31 March 2020: `56 Crore) from subsidiaries
Year ended
31 March 2021
906
246
710
384
558
256
281
2
43
80
76
28
26
8
6
5
15
125
4
1,149
12
2,205
(275)
6,850
(` in crores)
Year ended
31 March 2020
1,174
242
720
404
424
136
494
2
56
76
77
77
11
25
1
8
12
51
17
1,323
115
2,045
(304)
7,186
349
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Total
(b)
(c)
(a) Remuneration to auditors comprises:
Particulars
Payment to auditors
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
For statutory audit (including quarterly reviews and international reporting)
For parent company reporting
For certification services
For other services
For reimbursement of expenses
9
2
1
0
0
12
Includes Corporate social responsibility expenses of `39 Crore (31 March 2020: `53 Crore) as detailed in note 40(a).
13
2
0
0
0
15
The Company made contributions through electoral bonds of Nil (31 March 2020: `114 Crore) for the year ended 31
March 2021, which is included in Miscellaneous expenses.
(d) Rent represents expense on short term/ low value leases.
32 EXCEPTIONAL ITEMS
Particulars
Capital work-in-progress written off/
Impairment charge relating to property,
plant and equipment, exploration assets
(as applicable) and other assets in following
segments:
- Oil and gas a
- Copper b
- Aluminium g
Provision on receivables subject to
litigation c,d
Impairment charge relating to investments
in subsidiaries e
Revision of Renewable Purchase Obligation
pursuant to respective state electricity
regulation commission notifications f
Total
Year ended 31 March 2021
Year ended 31 March 2020
Exceptional
Items
Tax effect of
exceptional
items
Exceptional
items after
tax
Exceptional
Items
Tax effect of
exceptional
items
Exceptional
items after
tax
(` in crores)
-
-
(181)
(51)
-
-
-
-
63
18
-
-
-
-
(118)
(33)
-
-
(8,273)
(669)
-
(401)
(3,393)
2,875
234
-
93
(5,398)
(435)
-
(308)
-
(3,393)
168
(59)
109
(232)
81
(151)
(12,568)
3,143
(9,425)
During the year ended 31 March 2021 and 31
March 2020, the Company has recognized
impairment charge of `Nil Crore and of `8,273 Crore
respectively, on its assets in the oil and gas segment
comprising of:
During the previous year, impairment charge
of `7,516 Crore relating to Rajasthan oil and gas
block (“RJ CGU”) triggered by the significant fall in
the crude oil prices. Of this charge, `7,071 Crore
impairment charge has been recorded against oil and
gas producing facilities and `445 Crore impairment
charge has been recorded against exploration
intangible assets under development.
For oil & gas assets, CGU's identified are on the basis
of a production sharing contract (PSC) level, as it is
the smallest group of assets that generates cash
inflows that are largely independent of the cash
inflows from other assets or group of assets.
The recoverable amount of the RJ CGU of `5,585
Crore (US$747 million) was determined based on the
fair value less costs of disposal approach, a level-3
valuation technique in the fair value hierarchy, as it
more accurately reflects the recoverable amount
based on our view of the assumptions that would
be used by a market participant. This is based on
the cash flows expected to be generated by the
a.
i)
350
< BACK TO CONTENTS
projected oil and natural gas production profiles up
to the expected dates of cessation of production
sharing contract (PSC)/cessation of production from
each producing field based on the current estimates
of reserves and risked resources. Reserves
assumptions for fair value less costs of disposal
tests consider all reserves that a market participant
would consider when valuing the asset, which are
usually broader in scope than the reserves used in
a value-in-use test. Discounted cash flow analysis
used to calculate fair value less costs of disposal
uses assumption for short-term oil price of US$38
per barrel for the next one year and scales upto long-
term nominal price of US$57 per barrel, three years
thereafter, derived from a consensus of various
analyst recommendations. Thereafter, these have
been escalated at a rate of 2% per annum. The cash
flows are discounted using the post-tax nominal
discount rate of 10.35% derived from the post-tax
weighted average cost of capital after factoring the
risks ascribed to PSC extension and the successful
implementation of key growth projects. Additionally,
in computing the recoverable value, the effects of
market participant’s response on production sharing
contract matters have also been appropriately
considered. Based on the sensitivities carried out
by the Company, change in crude price assumptions
by US$1/bbl and changes to discount rate by 1%
would lead to a change in recoverable value by `181
Crore (US$24 million) and `257 Crore (US$34 million)
respectively.
During the previous year, impairment charge of `225
Crore relating to KG-ONN-2003/1 CGU mainly due
to the reduction in crude oil price forecast.
The recoverable amount of the CGU was determined
to be `147 Crore (US $20 million) based on fair
value less cost of disposal approach as described
in above paragraph. Discounted cash flow analysis
used to calculate fair value less costs of disposal
uses assumption for oil price as described in above
paragraph. The cash flows are discounted using the
post-tax nominal discount rate of 11.1% derived
from post-tax weighted average cost of capital.
The sensitivities around change in crude price
and discount rate are not material to the financial
statements.
During the previous year, impairment charge of `532
Crore in exploration block KG-OSN-2009/3, was
provided for as the Government of India approval on
extension and grant of excusable delay is awaited for.
ii)
iii)
b.
Refer note 3(c)(A)(vii) for impairment in copper
segment.
c.
As at 31 March 2021, the Company has an
outstanding receivable equivalent to `55 Crore (net
of provision of `103 Crore) (31 March 2020: `106
Crore (net of provision of `52 Crore)) from Konkola
Copper Mines Plc (KCM), predominantly regarding
monies advanced against future purchase of copper
cathode/anode.
A provisional liquidator was appointed to manage
KCM’s affairs on 21 May 2019, after ZCCM
Investments Holdings Plc (“ZCCM”), an entity
majorly owned by the Government of Zambia and a
20.6% shareholder in KCM, filed a winding up petition
against KCM. KCM’s majority shareholder, Vedanta
Resources Holdings Limited (“VRHL”), and its parent
company, Vedanta Resources Limited (“VRL”), are
contesting the winding up petition in the Zambian
courts. The local Court of Appeal (“CAZ”) has
ruled in favor of VRHL/VRL, ordering a stay of the
winding up proceedings and referring the matter for
arbitration. In light of the orders from CAZ, VRL has
also filed an application in the High Court of Zambia,
asking for directions on the powers of the provision
liquidator and the matter was argued on March 30,
2021. The ruling has been reserved.
VRHL and VRL had also commenced arbitration
proceedings against ZCCM with seat in
Johannesburg, South Africa, consistent with their
position that arbitration is the agreed dispute
resolution process. The procedural timetable
for the arbitration envisages an initial hearing of
prioritised issues commencing on 31 May 2021, with
the substantive dispute being heard in November
2021 and February 2022. Meanwhile, KCM has not
been supplying goods to the Group, which it was
supposed to as per the terms of the advance.
The Company has recognised provisions for
expected credit losses of `51 Crore during the
current year (31 March 2020: `52 Crore) and based
on its assessment of the merits of the case backed
by legal opinions, the Company is of the view that
VRL’s contractual position is upheld and continues to
be strong on merits.
d.
During the previous year, a parcel of land relating
to the Iron Ore business having carrying value of
`349 Crore was reclassified from freehold land to
other financial asset due to an ongoing legal dispute
relating to title of the land. Subsequently the
financial asset was fully provided for and recognized
under exceptional items.
351
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
e.
During the year ended 31 March 2021 and 31 March 2020 the Company has recognized net impairment charge of
`Nil Crore and of `3,393 Crore respectively, on its investment in subsidiaries, comprising of:
(b)
A reconciliation of income tax expense/(credit) applicable to profit/(loss) before tax at the Indian statutory income
tax rate to recognised income tax expense for the year indicated are as follows:
Particulars
Impairment charge on investment in Cairn India Holdings Limited (Refer (i) below)
Impairment charge on investment in Sesa Resources Limited (Refer (ii) below)
Net Impairment Charge on investment in subsidiaries
Year ended
31 March 2021
-
-
-
(` in crores)
Year ended
31 March 2020
(3,339)
(54)
(3,393)
(i)
(ii)
f.
During the year ended 31 March 2020, the
Company has provided for diminution in value
of its investment in CIHL (a 100% subsidiary of
the Company) of `3,339 Crore consequent to a
reduction in recoverable value of PPE in RJ block
held through its step-down 100% subsidiary
Cairn Energy Hydrocarbon Limited (CEHL) due to
reduction in crude prices and also due to reduction in
value of its investment in AvanStrate Inc. (ASI).
During the year ended 31 March 2020, the Company
has made a provision for impairment relating to
investment in Sesa Resources Limited of `54 Crore
based on expected realisation in view of prevailing
mining ban in Goa pursuant to an order passed by
the Hon’ble Supreme Court of India on 07 February
2018.
During the previous year, the Company has
restated its Renewable Power Obligation (RPO)
liability pursuant to Odisha Electricity Regulatory
Commission (OERC) notification dated December
31, 2019 which clarified that for CPP’s commissioned
before 01 April 2016, RPO should be pegged at the
RPO obligation applicable for 2015-16. Based on the
notification, liability of the Company's Jharsuguda
and Lanjigarh plants have been revised and `168
Crore reversal relating to previous years have been
recognised under exceptional items.
g.
During the year ended 31 March 2021, the Company
has recognised a loss of `181 Crore relating to
certain items of capital work-in-progress at the
aluminium operations, which are no longer expected
to be used.
33 TAX EXPENSE
(a) Tax charge/(credit) recognised in profit or loss (including on exceptional items)
Particulars
Current tax:
Current tax on profit for the year
Total Current Tax (a)
Deferred tax:
Origination and reversal of temporary differences
Credit in respect of exceptional items (Refer Note 32)
Total Deferred Tax (b)
Net tax charge/ (benefit) (a+b)
Profit/(Loss) before tax
Effective income tax rate (%)
Tax expense
Particulars
Tax effect on exceptional items
Tax expense/(benefit) - others
Net tax charge/ (benefit)
352
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
104
104
3,138
(81)
3,057
3,161
13,664
23%
4
4
(592)
(3,143)
(3,735)
(3,731)
(10,463)
36%
Year ended
31 March 2021
(81)
3,242
3,161
(` in crores)
Year ended
31 March 2020
(3,143)
(588)
(3,731)
Particulars
Profit/(Loss) before tax
Indian statutory income tax rate
Tax at statutory income tax rate
Disallowable expenses
Non-taxable income*
Tax holidays
Change in deferred tax balances due to change in tax law**
Income subject to lower tax rate
Unrecognised tax assets (Net)
Charge transferred to Equity (Refer Note 35)
Other permanent differences
Total
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
13,664
34.944%
4,775
18
(1,193)
(3)
(410)
-
-
-
(26)
3,161
(10,463)
34.944%
(3,656)
69
(49)
58
(865)
(372)
1,185
(252)
151
(3,731)
*Current year includes dividend income of `3,358 crore on which benefit under section 80M of the Income Tax Act, 1961 is availed.
** Deferred tax charge for the year ended 31 March 2020 included deferred tax credit of `834 crore on deferred tax balances as at 31 March
2019. Also refer note 3(c)(A)(ix).
Certain businesses of the Company are eligible for specified tax incentives which are included in the table above as tax
holidays and similar exemptions. These are briefly described as under:
The location based exemption: SEZ Operations
In order to boost industrial development and exports, provided certain conditions are met, profits of undertaking
located in Special Economic Zone ('SEZ') may benefit from tax holiday. Such tax holiday works to exempt 100% of the
profits for the first five years from the commencement of the tax holiday, 50% of profits for five years thereafter and
50% of the profits for further five years provided the amount allowable in respect of deduction is credited to Special
Economic Zone Re-Investment Reserve account. However, such undertaking would continue to be subject to the
Minimum Alternative tax ('MAT').
The Company has setup SEZ Operations in its aluminium division (where no benefit has been drawn).
Sectoral Benefit - Power Plants
To encourage the establishment of certain power plants, provided certain conditions are met, tax incentives exist to
exempt 100% of profits and gains for any ten consecutive years within the 15 years period following commencement
of the power plant’s operation subject to certain conditions under section 80IA of the Income Tax Act, 1961. However,
such undertakings generating power would continue to be subject to the MAT provisions.
(c) Deferred tax assets/liabilities
The Company has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents
accelerated tax relief for the depreciation of property, plant and equipment, net of losses carried forward by Vedanta
Limited (post the re-organisation) and unused tax credit in the form of MAT credits carried forward. Significant
components of Deferred tax (assets) & liabilities recognized in the balance sheet are as follows:
353
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
For the year ended 31 March 2021
34 EARNINGS PER EQUITY SHARE
Significant components of Deferred tax (assets)
& liabilities
Property, Plant and Equipment
Voluntary retirement scheme
Employee benefits
Fair valuation of derivative asset/liability
Fair valuation of other asset/liability
Unused tax asset MAT credit entitlement
Unabsorbed depreciation and tax losses
Other temporary differences
Total
For the year ended 31 March 2020
Opening
balance as
at 01 April
2020
4,143
(1)
(21)
(16)
85
(3,600)
(3,652)
(402)
(3,464)
Charged /
(credited) to
statement
of profit and
loss
(308)
1
2
-
(121)
(101)
3,652
(68)
3,057
Charged /
(credited)
to other
comprehensive
income
-
-
2
(7)
-
-
-
34
29
Exchange
difference
transferred to
translation of
foreign operation
13
-
-
-
-
-
-
-
13
Charged to
equity
-
-
32
-
-
-
-
-
32
Significant components of Deferred tax (assets)
& liabilities
Property, Plant and Equipment
Voluntary retirement scheme
Employee benefits
Fair valuation of derivative asset/liability
Fair valuation of other asset/liability
Unused tax asset MAT credit entitlement
Unabsorbed depreciation and tax losses
Other temporary differences
Total
Opening
balance as
at 01 April
2019
7,766
(3)
(19)
(33)
112
(3,971)
(3,524)
(331)
(3)
Charged /
(credited) to
statement
of profit and
loss
(3,691)
2
2
-
(27)
119
(128)
(12)
(3,735)
Charged /
(credited) to other
comprehensive
income
-
-
(4)
17
-
-
-
(59)
(46)
Exchange
difference
transferred to
translation of
foreign operation
68
-
-
-
-
-
-
-
68
Charged to
equity
-
-
-
-
-
252
-
-
252
(` in crores)
Closing
balance as
at March
31,2021
3,848
-
15
(23)
(36)
(3,701)
-
(436)
(333)
(` in crores)
Closing
balance as
at March
31,2020
4,143
(1)
(21)
(16)
85
(3,600)
(3,652)
(402)
(3,464)
Recognition of deferred tax assets on MAT credit entitlement is based on the Company's present estimates and
business plans as per which the same is expected to be utilized within the stipulated fifteen year period from the date of
origination. (Refer Note 3(c)(A)(vi))
In addition to above, the Company has not recognised deferred tax asset on deductible temporary differences
aggregating to `3,393 crore (31 March 2020: `3,393 crore) on Impairment of investment in subsidiaries (Refer Note 32
(e)) as the realization of the same is not reasonably certain.
(d) Non- current tax assets
Non- current tax assets of `1,787 Crore and `1,682 Crore as at 31 March 2021 and 31 March 2020 respectively mainly
represents income tax receivable from Indian tax authorities by Vedanta Limited relating to the refund arising
consequent to the Scheme of Amalgamation & Arrangement made effective in August 2013 pursuant to approval by
the jurisdiction High Court and receivables relating to matters in tax disputes including tax holiday claim.
354
Particulars
Profit/(Loss) after tax attributable to equity share holders for Basic and Diluted EPS
Weighted Average no. of equity shares outstanding during the year for Basic and Dilutive
EPS (in Crore)
Basic and Diluted Earnings/ (Loss) per share (in `)
Nominal value per share (in `)
35 DIVIDENDS
Particulars
Amounts recognised as distributions to equity shareholders:
Interim dividend (31 March 2021: `9.50 per share, 31 March 2020: `3.90 per share)
Attributable tax on dividend
Total
(` in crores except otherwise stated)
ended
Year ended
31 March 2020
31 March 2021
(6,732)
10,503
372
372
28.23
1.00
(18.10)
1.00
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
3,519
-
3,519
1,444
252
1,696
36 COMMITMENTS, CONTINGENCIES AND GUARANTEES
A) Commitments
The Company has a number of continuing operational and financial commitments in the normal course of business
including:
Exploratory mining commitments;
Oil & gas commitments;
Mining commitments arising under production sharing agreements; and
Completion of the construction of certain assets.
Estimated amount of contracts remaining to be executed on capital accounts and not provided for:
Particulars
Oil & Gas sector
Cairn India
Aluminium sector
Lanjigarh Refinery (Phase II)
Jharsuguda 1.25 MTPA smelter
Copper sector
Tuticorin Smelter 400 KTPA*
Others
Total
*currently contracts are under suspension under the force majeure clause as per the contract
As at
31 March 2021
(` in crores)
As at
31 March 2020
855
1,188
463
2,995
705
6,206
1,816
1,573
414
2,791
732
7,326
355
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Committed work programme (Other than capital commitment)
Particulars
Oil & Gas sector
Cairn India (OALP - New Oil and Gas blocks)
As at
31 March 2021
(` in crores)
As at
31 March 2020
5,625
5,841
Other Commitments
Power Division of the Company has signed a long term
power purchase agreement (PPA) with Gridco Limited for
supply of 25% of power generated from the power station
with additional right to purchase power (5%/ 7 %) at
variable cost as per the conditions referred to in PPA. The
PPA has a tenure of twenty five years.
C) Export Obligations
The Company has export obligations of `285 Crore (31
March 2020: `612 Crore) on account of concessional rates
of import duty paid on capital goods under the Export
Promotion Capital Goods Scheme and under the Advance
Licence Scheme for the import of raw material laid down
by the Government of India.
B) Guarantees
The aggregate amount of indemnities and other
guarantees on which the Company does not expect
any material losses was `16,390 Crore (31 March 2020:
`16,544 Crore). The Company has given guarantees in the
normal course of business as stated below:
Guarantees and bonds advanced to the customs
authorities in India of `632 Crore relating to the
export and payment of import duties on purchases
of raw material and capital goods (31 March 2020:
`362 Crore).
Guarantees issued for Company’s share of minimum
work programme commitments of `2,889 Crore (31
March 2020: `2,906 Crore).
Guarantees of `79 Crore (31 March 2020: `54 Crore)
issued under bid bond.
Bank guarantees of `115 Crore (31 March 2020:
`115 Crore) has been provided by the Company on
behalf of Volcan Investments Limited to Income tax
department, India as a collateral in respect of certain
tax disputes.
The Company has given corporate guarantees,
bank guarantees and also assigned its bank limits to
other group companies majorly in respect of certain
short-term and long-term borrowings amounting to
`11,051 Crore (31 March 2020: `10,816 Crore). Refer
Note 37
Other guarantees worth `1,624 Crore (31 March
2020: `2,291 Crore) issued for securing supplies of
materials and services, in lieu of advances received
from customers, litigation, for provisional valuation
of custom duty and also to various agencies,
suppliers and government authorities for various
purposes. The Company does not anticipate any
liability on these guarantees.
a)
b)
c)
d)
e)
f)
356
In the event of the Company’s inability to meet its
obligations, the Company’s liability would be `46 Crore
(31 March 2020: `84 Crore) reduced in proportion to
actual exports, plus applicable interest.
The Company has given bonds of `50 Crore (31 March
2020: `88 Crore) to custom authorities against these
export obligations.
D) Contingent Liabilities
The Company discloses the following legal and tax cases
as contingent liabilities:
a) Vedanta Limited: Income tax
Vedanta Limited (notice was served on Cairn India
Limited which subsequently merged with Vedanta
Limited, accordingly now referred to as Vedanta Limited/
Company) received a demand totalling `20,495 Crore
(including interest of `10,247 Crore) holding the Company
as ‘assessee in default’ as per Section 201 of Indian
Income Tax Act. The Company has challenged the said
order and presently pending before the Income Tax
Appellate Tribunal (ITAT).
The Company also filed a writ petition before the Delhi
High Court wherein it has raised several grounds against
the order said order. The matter came up for hearing on
05 February 2020 before Delhi High Court but adjourned
and the next date of hearing is 29 July 2021.
Separately, Vedanta Resources Limited has filed a Notice
of Claim against the Government of India (‘GOI’) under
the BIT. Hearing already concluded in May 2019 and award
awaited.
Separately Cairn UK Holdings Limited (“CUHL”), on whom
the primary liability of income tax lies, had received an
Order from the ITAT in the financial year 2016-17 holding
that the transaction is taxable in view of the clarificatory
amendment in the Act but also acknowledged that
amendment being a retrospective transaction, interest
< BACK TO CONTENTS
would not be levied. Hence affirming a demand of `10,247
Crore excluding the interest portion that had previously
been claimed. Against this demand Tax authorities have
recovered `5,863 Crore from the CUHL. Vedanta has also
paid interim dividend of `5 Crore to the Tax authorities
and thus reducing the liability to `4,384 Crore (March
31,2020: `4,384 Crore).
In related proceedings, the International Arbitration
Tribunal ruled unanimously in the case of Cairn Energy
Plc that India had breached its obligations under the UK-
India Bilateral Investment Treaty (the BIT). The Company
understands that Government of India has challenged
the ruling before the International Court of Justice at
The Hague. As the Cairn Energy Plc Arbitration award
received on 23 December 2020 regarding retrospective
tax will have a direct influence upon Company’s case,
due to the fact that primary liability of paying the income
tax is CUHL’s and in this case there is expected to be
no income tax liability in the hands of CUHL, the claim
of amounts assessed as in default against Company
should be eliminated. Further going by the recent ruling
of Supreme court in an another unrelated matter, it was
held that person under sec 195 can’t be held responsible
to do impossible in case of retrospective act. Thus it was
impossible for Vedanta Limited (successor in the business
of Cairn India Limited) to deduct income tax and can’t
be held responsible for default under Section 201. The
Company believes that owing to the similarity in the facts
of the case it has a good case to argue and accordingly it is
unlikely that any liability will devolve upon the Company.
b) Ravva Joint Operations arbitration proceedings
ONGC Carry
The Ravva Production Sharing Contract (PSC) obliges
the contractor parties to pay a proportionate share of
ONGC’s exploration, development, production and
contract costs in consideration for ONGC’s payment of
costs related to the construction and other activities
it conducted in Ravva prior to the effective date of the
Ravva PSC (the ONGC Carry). The question as to how
the ONGC Carry is to be recovered and calculated, along
with other issues, was submitted to an International
Arbitration Tribunal in August 2002 which rendered a
decision on the ONGC Carry in favour of the contractor
parties (including Vedanta Limited (Cairn India Limited
which subsequently merged with Vedanta Limited,
accordingly now referred to as Vedanta Limited)) whereas
four other issues were decided in favour of Government
of India (GOI) in October 2004 (Partial Award). The GOI
then proceeded to challenge the ONGC Carry decision
before the Malaysian courts, as Kuala Lumpur was the
seat of the arbitration. The Federal Court of Malaysia
upheld the Partial Award. As the Partial Award did
not quantify the sums, therefore, contractor parties
approached the same Arbitration Tribunal to pass a
Final Award in the subject matter since it had retained
the jurisdiction to do so. The Arbitral Tribunal was
reconstituted and the Final Award was passed in October
2016 in Company’s favour. GOI’s challenge of the Final
Award has been dismissed by the Malaysian High Court
and the next appellate court in Malaysia i.e. Malaysian
Court of Appeal. GOI then filed an appeal at Federal Court
of Malaysia. The matter was heard on 28 February 2019
and the Federal Court dismissed GOI’s leave to appeal.
The Company has also filed for the enforcement of the
Partial Award and Final Award before the Hon'ble Delhi
High Court. The matter is now listed for hearing on
13 July 2021.
Base Development Cost
Ravva joint operations had received a claim from the
Ministry of Petroleum and Natural Gas, Government of
India (GOI) for the period from 2000-2005 for `946 Crore
(US$129 million) for an alleged underpayment of profit
petroleum (by recovering higher Base Development
Costs (“BDC”) against the cap imposed in the PSC) to
the Government of India (GOI), out of which, Vedanta
Limited’s (Cairn India Limited which subsequently
merged with Vedanta Limited, accordingly now referred
to as Vedanta Limited) share will be `213 Crore (US$29
million) plus interest. Joint venture partners initiated
the arbitration proceedings and Arbitration Tribunal
published the Award in January 2011 allowing claimants
(including the Company) to recover the development
costs spent to the tune of `2,038 Crore (US$278 million)
and disallowed over run of `161 Crore (US$22 million)
spent in respect of BDC along with 50% legal costs.
Finally, Supreme Court of India on 16 September 2020
pronounced the order in favour of Vedanta, rejecting all
objections of the GOI and allowed enforcement of the
Arbitration Award. With the Supreme Court order the
Ravva BDC Matter stands closed.
In connection with the above two matters, the Company
has received an order dated 22 October 2018 from the
GOI directing oil marketing companies (OMCs) who are
the offtakers of Ravva Crude to divert the sale proceeds
to GOI’s account. GOI alleges that the Ravva Joint
Operations (consisting of four joint venture partners)
has short paid profit petroleum of `2,302 Crore (US$314
million) (the Company’s share approximately - `682 Crore
(US$93 million)) on account of the two disputed issues
of ONGC Carry and BDC matters, out of which `469
Crore (US$64 million) pertains to ONGC Carry and `213
Crore (US$29 million) pertains to BDC Matter. Against
an interim application, filed by the Company along with
one of its joint venture partner, for seeking stay of such
action from GOI, before the Hon'ble Delhi High Court,
the Court directed the OMCs to deposit above sums
to the Delhi High Court for both BDC and ONGC Carry
matters. However, the Company (and other joint venture
357
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
partner) has been given the liberty to seek withdrawal
of the amounts from the Court upon furnishing a bank
guarantee of commensurate value. On the basis of the
above direction, the OMCs have deposited `682 Crore
(US$93 million) out of which `616 Crore (US$84 million)
has been withdrawn post submission of bank guarantee.
The Hon’ble Delhi High Court vide its order dated 28 May
2020 read with order dated 04 June 2020 has directed
that all future sale proceeds of Ravva Crude w.e.f. 05 June
2020 be paid directly to Vedanta Limited by the OMCs.
In view of the closure of the BDC matter, the Company
has also filed an application in HC on 22 September 2020
seeking refund of remaining `66 Crore (US$9 million) and
release of bank guarantees submitted in Court pertaining
to the BDC matter, out of which `147 Crore (US$20
million) have since been received by Vedanta.
During the proceedings of the above matter, GOI has
also filed an interim application seeking deposit by the
said OMCs of an amount of `638 Crore (US$87 million)
(Company’s share of `410 Crore (US$56 million)) towards
interest on the alleged short payment of profit petroleum
by the petitioners i.e. the Company (and other joint
venture partner). The matter has been listed for hearing
on 13 July 2021 along with ONGC carry case.
While the Company does not believe the GOI will be
successful in its challenge, if the Arbitral Awards in above
matters are reversed and such reversals are binding,
Company would be liable for approximately `469 Crore
(US$64 million) plus interest. (31 March 2020: `479 Crore
(US$64 million) plus interest).
Proceedings related to the imposition of entry tax
c)
The Company challenged the constitutional validity of
the local statutes and related notifications in the states of
Odisha and Rajasthan pertaining to the levy of entry tax
on the entry of goods brought into the respective states
from outside. Post some contradictory orders of High
Courts across India adjudicating on similar challenges,
the Supreme Court referred the matters to a nine judge
bench. Post a detailed hearing, although the bench
rejected the compensatory nature of tax as a ground of
challenge, it maintained status quo with respect to all
other issues which have been left open for adjudication by
regular benches hearing the matters.
Following the order of the nine judge bench, the regular
bench of the Supreme Court proceeded with hearing
the matters. The regular bench remanded the entry tax
matters relating to the issue of discrimination against
domestic goods bought from other States to the
respective High Courts for final determination but retained
the issue of jurisdiction for levy on imported goods, for
determination by the regular bench of the Supreme Court.
Following the order of the Supreme Court, the Company
filed writ petitions in respective High Courts.
358
On 09 October 2017, the Supreme Court has held that
states have the jurisdiction to levy entry tax on imported
goods. With this Supreme Court judgement, imported
goods will rank pari-passu with domestic goods for the
purpose of levy of Entry tax. The Company has amended
its appeal (writ petitions) in Odisha to include imported
goods as well.
The issue pertaining to the levy of entry tax on the
movement of goods into a Special Economic Zone (SEZ)
remains pending before the Odisha High Court. The
Company has challenged the levy of entry tax on any
movement of goods into SEZ based on the definition
of ‘local area’ under the Odisha Entry Tax Act which is
very clear and does not include a SEZ. In addition, the
Government of Odisha further through its SEZ Policy
2015 and the operational guidelines for administration of
this policy dated 22 August 2016, exempted the entry tax
levy on SEZ operations.
The total claims against the Company are `1,158 Crore
(31 March 2020: `1,112 Crore) net of provisions made.
d) Miscellaneous disputes- Income tax
The Company is involved in various tax disputes
amounting to `528 Crore (31 March 2020: `527 Crore)
relating to income tax for the periods for which initial
assessments have been completed. These mainly relate
to the disallowance of tax holiday for 100% Export
Oriented Undertaking under section 10B of the Income
Tax Act, 1961, disallowance of tax holiday benefit on
production of gas under section 80IB of the Income Tax
Act, 1961, on account of depreciation disallowances
under the Income Tax Act and interest thereon which are
pending at various appellate levels.
The Company believes that these disallowances are
not tenable and accordingly no provision is considered
necessary.
e) Miscellaneous disputes- Others
The Company is subject to various claims and exposures
which arise in the ordinary course of conducting and
financing its business from the excise, indirect tax
authorities and others. These claims and exposures
mostly relate to the assessable values of sales and
purchases or to incomplete documentation supporting
the Company’s returns or other claims.
The approximate value of claims (excluding the items as
set out separately above) against the Company totals to
`2,596 Crore (31 March 2020: `2,139 Crore)
Based on evaluations of the matters and legal advice
obtained, the Company believes that it has strong merits
in its favor. Accordingly, no provision is considered at this
stage.
< BACK TO CONTENTS
37 RELATED PARTY DISCLOSURES
List of related parties and relationships
A) Entities controlling the Company (Holding Companies)
Volcan Investments Limited
Volcan Investments Cyprus Limited
Intermediate Holding Companies
Finsider International Company Limited
Richter Holdings Limited
Twin Star Holdings Limited
Vedanta Resources Cyprus Limited
Vedanta Resources Finance Limited
Vedanta Resources Holdings Limited
Vedanta Resources Limited
Welter Trading Limited
Westglobe Limited
Vedanta Holdings Mauritius II Limited (a)
B) Fellow Subsidiaries (with whom transactions have taken place)
Konkola Copper Mines Plc (e)
Sterlite Iron and Steel Company Limited (f)
Sterlite Technologies Limited
Sterlite Power Grid Ventures Limited
Sterlite Power Transmission limited
C) Associates and Joint ventures (Refer note 39)
D) Subsidiaries
Amica Guesthouse (Proprietary) Limited
AvanStrate Inc, Japan
AvanStrate Korea Inc, Korea
AvanStrate Taiwan Inc, Taiwan
Bharat Aluminium Company Limited
Black Mountain Mining (Proprietary) Limited
Bloom Fountain Limited
Cairn Energy Discovery Limited (b)
Cairn Energy Gujarat Block 1 Limited
Cairn Energy Hydrocarbons Limited
Cairn Energy India (Proprietary) Limited (b)
Cairn Exploration (No. 2) Limited (b)
Cairn India Holdings Limited
Cairn Lanka (Private) Limited
Cairn South Africa (Pty) Limited (c)
CIG Mauritius Holdings Private Limited (c)
CIG Mauritius Private Limited (c)
Copper Mines of Tasmania (Proprietary) Limited
ESL Steel Limited
Fujairah Gold FZC
Goa Sea Port Private Limited
Hindustan Zinc Limited
Killoran Lisheen Finance Limited
Killoran Lisheen Mining Limited
Lakomasko BV
Lisheen Milling Limited
Lisheen Mine Partnership
Malco Energy Limited
Maritime Ventures Private Limited
Monte Cello BV
Namzinc (Proprietary) Limited
Paradip Multi Cargo Berth Private Limited
Sesa Mining Corporation Limited
Sesa Resources Limited
Skorpion Mining Company (Proprietary) Limited
Skorpion Zinc (Proprietary) Limited
Sterlite Ports Limited
Talwandi Sabo Power Limited
Thalanga Copper Mines (Proprietary) Limited
THL Zinc Holding BV
THL Zinc Limited
THL Zinc Ventures Limited
THL Zinc Namibia Holdings (Proprietary) Limited
Vedanta Exploration Ireland Limited
Vedanta Lisheen Holdings Limited
Vedanta Lisheen Mining Limited
Vizag General Cargo Berth Private Limited
Western Cluster Limited
Ferro Alloys Corporation Limited (d)
FACOR Power Limited (d)
Facor Realty and Infrastructure Limited (d)
E) Post retirement benefit plan
Sesa Group Employees Provident Fund
Sesa Group Employees Gratuity Fund and Sesa Group
Executives Gratuity Fund
Sesa Group Executives Superannuation Scheme Fund
F) Others (with whom transactions have taken place)
I) Enterprises over which key management personnel/ their
relatives have control or sinificant influence.
Vedanta Foundation
Sesa Community Development Foundation
Vedanta Limited ESOS Trust
Cairn Foundation
Runaya Refinery LLP
Janhit Electoral Trust
II) Enterprises which are Associates/Joint Ventures of
entities under common control
India Grid trust (g)
a. On 24 December 2020, Vedanta Holdings Mauritius II Limited
purchased shares of Vedanta Limited (Refer note 14(c)(3)).
b. Liquidated during the year.
c. Under liquidation.
d. Acquired during the year.
e. Konkola Copper Mines Plc (KCM) ceased to be a related party
w.e.f. 21 May 2019. The Company has total receivable of `51
Crore (net of provision of `103 Crore) as at 31 March 2021 (As at
31 March 2020: `106 Crore (net of provision of `52 Crore)).
f. Sterlite Power Grid Ventures Limited (SPGVL) has been
amalgamated with Sterlite Power Transmission Limited (SPTL)
effective from 15 November 2020.
g. Ceased to be related party during the previous year.
359
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Ultimate Controlling party
Vedanta Limited is a majority-owned and controlled subsidiary of Vedanta Resources Limited (‘VRL’). Volcan
Investments Limited (‘Volcan’) and its wholly owned subsidiary together hold 100 % of the share capital and 100 %
of the voting rights of VRL. Volcan is 100 % beneficially owned and controlled by the Anil Agarwal Discretionary Trust
(‘Trust’). Volcan Investments Limited, Volcan Investments Cyprus Limited and other intermediate holding companies
except VRL do not produce Group financial statements.
I)
For the Year ended 31 March 2021
Particulars
Income:
(i) Revenue from operations
(ii) Other Income
Interest and guarantee commission
a)
b) Dividend income
c) Outsourcing service fees
Expenditure and other transactions:
(i) Purchase of goods/ Services
(ii) Stock options expenses/(recovery)
(iii) Allocation of Corporate Expenses
(iv) Management and Brand Fees paid(c)
(v) Reimbursement for other expenses (net of recovery)
(vi) Corporate Social Responsibility expenditure/ Donation
(vii) Contribution to Post retirement employee benefit trust
(viii) Sale/ (Purchase) of fixed assets
(ix) Dividend paid.
-To Holding companies
To key management personnel
-To relatives of key management personnel
(x) Commission/Sitting Fees
-To Independent directors
-To key management personnel
(xi) Interest and guarantee commission expense
Transactions during the year:
a) Financial guarantees given
b) Financial guarantees relinquished
c)
Banking Limits assigned/utilised/renewed/ (relinquished)
to/for group companies
d) Loans given during the year
e) Loans repaid during the year (a)
f) Short-term borrowings (taken)/ repaid during the year
g) Sale of investments to Hindustan Zinc Limited
h)
Security deposits received (Net of repayment of `130
crore)
Balances as at year end:
Trade Receivables
a)
b)
Loans given
c) Other receivables and advances
(` in crores)
Associates/
Joint ventures
Others
Total
Entities
controlling
the Company/
Fellow
subsidiaries
660
792
14
2
4
76
-
-
766
(13)
-
-
-
1,770
-
-
-
-
115
1
-
-
0
-
-
-
-
46
-
166
113
10,369
-
592
(21)
96
-
96
-
-
(0)
-
-
-
-
-
93
2,393
1,995
(25)
601
(1,672)
200
1,407
1,170
17
702
220
-
-
-
-
28
-
-
-
(0)
15
7
-
0
0
0
3
1
-
-
-
-
-
(57)
-
-
-
-
277
2
1,452
126
10,371
4
697
(21)
96
766
82
15
7
(0)
1,770
0
0
3
1
207
2,394
1,995
(25)
601
(1,729)
200
1,407
1,170
63
979
388
< BACK TO CONTENTS
Particulars
Trade Payables
d)
e) Other payables (including brand fee payable and security
f)
g)
h)
i)
a.
b.
c.
d.
deposit)
Financial guarantee given
Banking Limits assigned/utilised to/for group companies
Sitting fee, Commission and consultancy fees payable
-To Independent directors
-To key management personnel
Short-term borrowings
The Company reduced its loan receivable from
Vedanta Limited ESOS Trust by `57 Crore on exercise
of stock options by employees during the year ended
31 March 2021.
Bank gaurantee given by Vedanta Limited on behalf of
Volcan Investments Limited in favour of Income Tax
department, India as collateral in respect of certain tax
disputes of Volcan Investments Limited.
In 2017, the Company had executed a three year brand
license agreement (“the Agreement”) with Vedanta
Resources Ltd (‘VRL’) for the use of brand ‘Vedanta’
which envisaged payment of brand fee to VRL at 0.75%
of turnover of the Company. During the current year,
the Agreement was renewed between the parties
and certain additional services were also agreed to
be provided by VRL. Based on updated benchmarking
analysis conducted by independent experts, the brand
and strategic service fee was re-negotiated at 2% of
turnover of the Company. Accordingly, the Company
has recorded an expense of `728 Crore (31 March
2020: `259 Crore) for the year ended 31 March 2021.
The Company pays such fee in advance at the start of
the year, based on its estimated annual turnover.
Vedanta Resources Limited (“VRL”), as a parent
company, has provided financial and performance
guarantee to the Government of India for erstwhile
Cairn India group’s (“Cairn”) obligations under the
Production Sharing Contract (‘PSC’) provided for
onshore block RJ-ON-90/1, for making available
financial resources equivalent to Cairn’s share for its
obligations under the PSC, personnel and technical
services in accordance with industry practices and
any other resources in case Cairn is unable to fulfil its
obligations under the PSC.
During the current year, the Board of Directors of
the Company has approved a consideration to be
paid for this guarantee at an annual charge of 1.2%
(` in crores)
Associates/
Joint ventures
Others
Total
Entities
controlling
the Company/
Fellow
subsidiaries
54
96
1
115
-
-
-
27
1,307
10,988
62
-
-
200
15
15
-
-
3
1
-
95
1,418
10,989
177
3
1
200
of net exploration and development spend, subject
to a minimum annual fee of `37 crore ($5 million),
applicable from April 2020 onwards to be paid in
ratio of participating interests held equally by the
Company and its step-down subsidiary, Cairn Energy
Hydrocarbons Ltd (“CEHL”).
Similarly, VRL has also provided financial and
performance guarantee to the Government of India
for the Company’s obligations under the Revenue
Sharing Contract (‘RSC’) in respect of 51 Blocks
awarded under the Open Acreage Licensing Policy
(“OALP”) by the Government of India. During the
current year, the Board of Directors of the Company
has approved a consideration to be paid for this
guarantee consisting of one-time charge of `183 crore
($25 million), i.e., 2.5% of the total estimated cost of
initial exploration phase of approx. `7,330 crore ($1
billion) and an annual charge of 1% of spend, subject to
a minimum fee of `73 crore ($10 million) and maximum
fee of `147 crore ($20 million) per annum.
Accordingly, the Company has recorded a guarantee
commission expense of `133 crore ($18 million) [2020:
Nil] for the year ended 31 March 2021 and `161 crore
($22 million) (PY Nil) is outstanding as a pre-payment.
e.
During the year ended 31 March 2021, the Company
had renewed loan provided to Sterlite Iron and Steel
Company Limited to finance project in earlier years.
The loan balance as at 31 March 2021 was `5 Crore
(March 31,2020: `5 Crore). The loan is unsecured in
nature and carries an interest rate of 7.15% per annum.
The loan was due in March 2021 and the agreement
was renewed for a further period of 12 months.
During the year, the Company has recognised a
provision of `16 Crore (Including accrued interest of
`11 Crore) against said loan.
360
361
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
Remuneration of key management personnel
Particulars
Short-term employee benefits
Post employment benefits (f)
Share based payments
Total
(` in crores)
For the Year ended
31 March 2021
27
1
0
28
f.
Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis
for all the employees together.
I)
For the year ended 31 March 2020
Particulars
Income:
(i) Revenue from operations
(ii) Other Income
Interest and guarantee commission
a)
b) Dividend income
c) Outsourcing service fees
Expenditure and other transactions:
Purchase of goods/ Services
(i)
(ii) Stock options expenses/(recovery)
(iii) Allocation of Corporate Expenses
(iv) Management and Brand Fees paid
(v)
(vi) Corporate Social Responsibility expenditure/ Donation
(vii) Contribution to Post retirement employee benefit trust
(viii) Sale/ (Purchase) of fixed assets
(ix) Dividend paid.
(Recovery of)/ Reimbursement to/for other expenses
-To Holding companies
-To key management personnel
-To relatives of key management personnel
(x) Commission/Sitting Fees
-To Independent directors
-To key management personnel
Transactions during the year:
Financial guarantees given
Financial guarantees relinquished
a)
b)
c) Banking Limits assigned/utilised/renewed/ (relinquished) to/
for group companies
Loans given during the year
Loans repaid during the year (a)
d)
e)
(` in crores)
Associates/
Joint ventures
Others
Total
Entities
controlling
the Company/
Fellow
subsidiaries
671
969
17
2
3
56
(0)
-
313
48
-
-
-
727
-
-
-
-
-
-
-
0
-
135
2,125
-
651
(37)
(87)
-
(104)
-
-
1
-
-
-
-
-
91
6,233
(100)
2,870
(1,403)
-
0
4
-
7
(0)
-
-
0
25
6
-
-
0
0
4
4
-
-
-
-
(17)
1,640
152
2,131
3
714
(37)
(87)
313
(56)
25
6
1
727
0
0
4
4
91
6,233
(100)
2,870
(1,420)
< BACK TO CONTENTS
Particulars
(` in crores)
Associates/
Joint ventures
Others
Total
Entities
controlling
the Company/
Fellow
subsidiaries
Balances as at year end:
Trade Receivables
a)
b)
Loans given
c) Other receivables and advances
d)
e)
f)
g)
h)
i)
Trade Payables
Other payables
Other Current liabilities- Advance from Customers
Financial guarantee given
Banking Limits assigned/utilised to/for group companies (b)
Commission and consultancy fees payable to KMP and their
relatives
The Company reduced its loan receivable from Vedanta Limited ESOS Trust by `17 Crore on exercise of stock options by employees
during the year ended 31 March 2020.
Bank gaurantee given by Vedanta Limited on behalf of Volcan Investments Limited in favour of Income Tax department, India as
collateral in respect of certain tax disputes of Volcan Investments Limited.
-
a.
b.
0
5
17
19
43
3
-
115
42
1,773
267
7
16
-
10,526
290
-
-
334
2
1
17
-
-
-
5
42
2,112
286
27
76
3
10,526
405
5
Remuneration of key management personnel
Particulars
Short-term employee benefits (c)
Post employment benefits (d)
Share based payments
Total
(` in crores)
For the year ended
31 March 2020
40
8
1
49
c.
d.
This includes reimbursement to the parent company for remuneration paid to the then CEO and Whole Time Director of the Company
aggregating to `11 crore for the year ended 31 March 2020.
Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees
together.
There are no outstanding debts or loans due from directors or other officers (as defined under Section 2(59) of the
Companies Act, 2013) of the Company.
38 SUBSEQUENT EVENTS
As per information received from Vedanta Resources Limited (“VRL” or “Acquirer”), VRL together with Twin Star
Holdings Limited, Vedanta Holdings Mauritius Limited and Vedanta Holdings Mauritius II Limited, as persons acting in
concert with the Acquirer (“PACs”), have acquired 374,231,161 equity shares of the Company under the voluntary open
offer made to the public shareholders of the Company in accordance with the Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and thereby increasing the shareholding of VRL
and its subsidiaries in the Company from the current 55.1% to 65.18%.
There are no other material adjusting or non-adjusting subsequent events, except as already disclosed.
362
363
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
23 AvanStrate Inc. ('ASI')
Holding Company
Japan
24 Cairn India Holdings Limited
25 Western Cluster Limited
Investment company
Iron ore mining
Jersey
Liberia
26 Bloom Fountain Limited
27 CIG Mauritius Holdings Private
Limited (a)
28 CIG Mauritius Private Limited (a)
29 THL Zinc Ltd
Mauritius
Operating (Iron ore)
and Investment
Company
Investment Company Mauritius
Mauritius
Investment Holding
Company and to
provide services and
resources relevant to
oil & gas exploration,
production and
development
Investment company Mauritius
30 THL Zinc Ventures Limited
31 Amica Guesthouse (Proprietary)
Limited
Investment company Mauritius
Namibia
Accommodation and
catering services
32 Namzinc (Proprietary) Limited Owns and operates
Namibia
zinc refinery
33 Skorpion Mining Company
(Proprietary) Limited ('NZ')
34 Skorpion Zinc (Proprietary)
Limited ('SZPL')
Exploration,
development,
production and sale of
zinc ore
Operating (Zinc) and
Investment Company
Namibia
Namibia
Cairn India
Holdings Limited
Vedanta Limited
Bloom Fountain
Limited
Vedanta Limited
Cairn Energy
Hydrocarbons
Limited
CIG Mauritius
Holdings Private
Limited
THL Zinc
Ventures Ltd
Vedanta Limited
Skorpion Zinc
(Proprietary)
Limited
Skorpion Zinc
(Proprietary)
Limited
Skorpion Zinc
(Proprietary)
Limited
THL Zinc
Namibia Holdings
(Proprietary)
Limited
THL Zinc Ltd
The Company's/Immediate holding
company's percentage holding
(in %)
As at
31 March 2021
As at
31 March 2020
51.63
51.63
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
365
Republic of
Ireland
Republic of
Ireland
Republic of
Ireland
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
Vedanta Lisheen
Holdings Limited
Vedanta Lisheen
Holdings Limited
50% each held by
Killoran Lisheen
Mining Limited &
Vedanta Lisheen
Mining Limited
Republic of
Vedanta Lisheen
Holdings Limited
Ireland
Netherlands THL Zinc Holing
BV
Vedanta Lisheen
Holdings Limited
Republic of
Ireland
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
35 THL Zinc Namibia Holdings
(Proprietary) Limited (“VNHL”)
36 Lakomasko BV
Mining and Exploration
and Investment
company
Investment company
37 Monte Cello BV (“MCBV”)
38 THL Zinc Holding BV
39 Cairn Energy Discovery Limited2 Oil and gas exploration,
Holding Company
Investment company
40 Cairn Energy Gujarat Block 1
Limited
41 Cairn Energy Hydrocarbons
Limited
development and
production
Oil and gas exploration,
development and
production
Oil and gas exploration,
development and
production
Namibia
Netherlands THL Zinc Holding
BV
Netherlands Vedanta Limited
Netherlands Vedanta Limited
Scotland
Cairn India
Holdings Limited
Scotland
Cairn India
Holdings Limited
Scotland(b)
Cairn India
Holdings Limited
39
INTEREST IN OTHER ENTITIES
Subsidiaries
a)
The Group consists of a parent company, Vedanta Limited, incorporated in India and a number of subsidiaries held
directly and indirectly by the Group which operate and are incorporated around the world. Following are the details of
shareholdings in the subsidiaries.
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
1 Cairn Energy India Pty Limited2 Exploration for and
Australia
2 Copper Mines of Tasmania Pty
Limited ("CMT")
development and
production of oil & gas
Copper mining
Cairn India
Holdings Limited
Australia
Monte Cello BV
100.00
100.00
3 Thalanga Copper Mines Pty
Copper mining
Australia
Monte Cello BV
100.00
100.00
The Company's/Immediate holding
company's percentage holding
(in %)
As at
31 March 2021
As at
31 March 2020
-
100.00
India
India
India
India
India
India
India
India
India
India
India
India
Vedanta Limited
51.00
51.00
Vedanta Limited
95.49
95.49
Sterlite Ports
Limited
Vedanta Limited
Vedanta Limited
Sterlite Ports
Limited
Vedanta Limited
Sesa Resources
Limited
Vedanta Limited
Vedanta Limited
Vedanta Limited
100.00
100.00
64.92
64.92
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Vedanta Limited
100.00
100.00
Limited ("TCM")
4 Bharat Aluminium Company
Limited ("BALCO")
5 Electrosteel Steels Limited
6 Goa Sea Port Private Limited
Aluminium mining and
smelting
Manufacturing of Steel
& DI Pipe
Infrastructure
7 Hindustan Zinc Limited ("HZL") Zinc mining and
smelting
8 MALCO Energy Limited ("MEL") Power generation
9 Maritime Ventures Private
Infrastructure
Limited
10 Paradip Multi Cargo Berth
Infrastructure
Private Limited
11 Sesa Mining Corporation
Iron ore mining
Limited
12 Sesa Resources Limited ("SRL")
13 Sterlite Ports Limited
14 Talwandi Sabo Power Limited
Iron ore mining
Infrastructure
Power generation
("TSPL")
15 Vizag General Cargo Berth
Infrastructure
Private Limited
16 Killoran Lisheen Finance
Limited(a)
Investment company
17 Killoran Lisheen Mining Limited Development of a zinc/
18 Lisheen Milling Limited
19 Lisheen Mine Partnership
lead mine
Manufacturing3
Development and
operation of a zinc/lead
mine
20 Vedanta Exploration Ireland
Limited(a)
Exploration company
21 Vedanta Lisheen Holdings
Investment company
Limited
22 Vedanta Lisheen Mining Limited Zinc and lead mining
364
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
Interest in associates and joint ventures
c)
Set out below are the associates and joint ventures of the Company as at 31 March 2021 which, in the opinion of the
management, are not material to the Company. The country of incorporation or registration is also their principal place
of business, and the proportion of ownership interest is the same as the proportion of voting rights held.
Associates
Sr.
No.
1 RoshSkor Township (Pty) Limited
2 Gaurav Overseas Private Limited
3 Raykal Aluminium Company Private Limited
4 Rampia Coal Mines and Energy Private Limited(a)
(a) Struck off by the Ministry of Corporate affairs on 19 April 2021
Jointly controlled entities
Sr.
No.
1 Madanpur South Coal Company Limited
2 Goa Maritime Private Limited
3 Rosh Pinah Health Care (Proprietary) Limited
4 Gergarub Exploration and Mining (Pty) Limited
Country of
incorporation
Namibia
India
India
India
Country of
incorporation
India
India
Namibia
Namibia
% Ownership interest
As at
31 March 2021
50.00
50.00
24.50
17.39
As at
31 March 2020
50.00
50.00
24.50
17.39
% Ownership interest
As at
31 March 2021
17.62
50.00
69.00
51.00
As at
31 March 2020
17.62
50.00
69.00
51.00
40 (a) The Company has incurred an amount of `39 Crore (31 March 2020: `53 Crore) towards Corporate Social
Responsibility (CSR) as per Section 135 of the Companies Act, 2013 and is included in other expenses:
Particulars
(a) Gross amount required to be spend by the
Company during the year
(b) Amount approved by the Board to be spent
during the year
(c) Amount spent on: *
i)
ii)
Construction/acquisition of assets
On purposes other than (i) above (for CSR
projects)
Total
Year ended 31 March 2021
Year ended 31 March 2020
In- Cash
Yet to be Paid in
Cash
In- Cash
Yet to be Paid in
Cash
(` in Crore)
17
45
-
34
34
13
137
-
39
39
-
5
5
-
14
14
* includes `15 Crore (31 March 2020: `25 Crore) paid to related party (Refer note 37).
Opening Balance
0
In case of Section 135(5) of Companies Act, 2013
Amount required to be spent
during the year
17
Amount spent during the year
Closing Balance
39
22 *
* Asset has not been recognised on the amount spent in excess of CSR Liability
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
The Company's/Immediate holding
company's percentage holding
(in %)
As at
31 March 2021
As at
31 March 2020
-
100.00
Scotland
Cairn India
Holdings Limited
South Africa THL Zinc Ltd
74.00
74.00
44 Cairn South Africa Pty Limited4 Oil and gas exploration,
South Africa Cairn Energy
100.00
100.00
42 Cairn Exploration (No. 2)
Limited2
43 Black Mountain Mining
(Proprietary) Limited
Oil and gas exploration,
development and
production
Exploration,
development,
production and sale
of zinc, lead, copper
and associated mineral
concentrates
45 AvanStrate Korea Inc
46 Cairn Lanka Private Limited
47 AvanStrate Taiwan Inc
48 Fujairah Gold FZC
49 Sterlite (USA) Inc.(a)
development and
production
Manufacturer of LCD
glass substrate
Oil and gas exploration,
development and
production
Manufacturer of LCD
glass substrate
Manufacturing of
Copper Rod and
Refining of Precious
Metals (Gold & Silver)
Investment company
50 Ferro Alloy Corporation Limited
(FACOR)(c)
51 Facor Realty and Infrastructure
Limited(c)
Manufacturing of Ferro
Alloys and Mining
Real estate
Hydrocarbons
Limited
South Korea Avanstrate
(Japan) Inc.
CIG Mauritius
Private Limited
Sri Lanka
Taiwan
United Arab
Emirates
Avanstrate
(Japan) Inc.
Malco Energy
Limited
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Vedanta Limited
100.00
100.00
Vedanta Limited
100.00
United States
of America
India
India
FACOR
100.00
90.00
-
-
-
52 FACOR power Limited(c)
Power generation
India
FACOR
(a)
1
2
3
4
Under liquidation (b)Principal place of business is in India (c)Acquired with effect from 21 September 2020
The Group also has interest in certain trusts which are neither significant nor material to the Group.
Cairn Exploration (No. 2) Limited and Cairn Energy Discovery Limited have been dissolved w.e.f. 22 September 2020 and Cairn Energy
India (Pty) Ltd. w.e.f. 26 August 2020.
Activity of the company ceased in February 2016
Cairn South Africa Pty Limited has been deregistered w.e.f. 06 April 2021.
b)
Joint operations
Oil & Gas blocks/fields
Operating Blocks
Ravva block-Exploration, Development and Production
CB-OS/2 – Exploration
CB-OS/2 - Development & production
RJ-ON-90/1 – Exploration
RJ-ON-90/1 – Development & production
KG-OSN-2009/3 – Exploration
Non-Operating Blocks
KG-ONN-2003/1
Area
Krishna Godavari
Cambay Offshore
Cambay Offshore
Rajasthan Onshore
Rajasthan Onshore
Krishna Godavari Offshore
(%) Participating Interest
As at
31 March 2021
As at
31 March 2020
22.50
60.00
40.00
50.00
35.00
100.00
22.50
60.00
40.00
50.00
35.00
100.00
Krishna Godavari Onshore
49.00
49.00
(1) South Africa Block1-Exploration was relinquished on 10 September 2019.
366
367
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
(b) Disclosures under Section 22 of the Micro, Small and Medium Enterprises Development Act 2006
Particulars
(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year
Interest due thereon remaining unpaid to any supplier as at the end of the accounting
(ii)
year
(iii) The amount of interest paid along with the amounts of the payment made to the
supplier beyond the appointed day
(iv) The amount of interest due and payable for the year
(v)
The amount of interest accrued and remaining unpaid at the end of the accounting
year
(vi) The amount of further interest due and payable even in the succeeding year, until such
date when the interest dues as above are actually paid
Year ended
31 March 2021
205
4
(` in crores)
Year ended
31 March 2020
182
-
-
-
-
-
-
-
-
-
projects, application of technologies such as enhanced oil recovery techniques and true up of the estimates. The
management’s internal estimates of hydrocarbon reserves and resources at the year end, are as follows:
Particulars
Country
India
Rajasthan MBA Fields
India
Rajasthan MBA EOR
Rajasthan Block Other Fields India
India
Ravva Fields
India
CBOS/2 Fields
India
Other fields
Total
Gross proved and probable
hydrocarbons initially in place
Gross proved and probable
reserves and resources
Net working interest proved
and probable reserves and
resources
(mmboe)
(mmboe)
(mmboe)
As at
31 March 2021
2,307
-
3,603
704
298
352
7,264
As at
31 March 2020
2,288
-
3,535
692
292
348
7,155
As at
31 March 2021
266
388
470
27
34
44
1,229
As at
31 March 2020
317
317
449
28
40
43
1,194
As at
31 March 2021
93
136
164
6
14
26
439
As at
31 March 2020
111
111
157
6
16
25
426
(c )
Loans and Advance(s) in the nature of Loan (Regulation 34 (3) and 53 (f) read together with Para A of Schedule V
of Listing Obligations & Disclosure Requirements):
The Company’s net working interest proved and probable reserves is as follows:
(a) Name of the Company
Relationship
Balance as at
31 March 2021
Sterlite Iron and Steel Company Limited
(Refer note 37(e))
Vizag General Cargo Berth Private Limited
Sesa Resources Limited
Sterlite Ports Limited
Paradip Multi Cargo Berth Private Limited
Sesa Mining Corporation Limited
ESL Steel Limited
Talwandi Sabo Power Limited
Ferro Alloys Corporation Limited
Fellow Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
Wholly owned Subsidiary
-
425
68
4
0
-
183
-
22
Maximum
Amount
Outstanding
during the year
5
425
87
4
0
45
197
1,440
22
(` in Crore)
Balance as at
31 March 2020
5
-
87
4
0
45
197
1,440
-
(a) None of the loanee have made, per se, investment in the shares of the Company.
(b)
Investments made by Sterlite Ports Limited in Maritime Ventures Private Limited - 10,000 equity shares and Goa
Sea Port - 50,000 equity shares
Investments made by Sesa Resources Limited in Sesa Mining Corporation Limited - 11,50,000 equity shares and
Goa Maritime Private Limited- 5,000 Shares
41 OIL & GAS RESERVES AND RESOURCES
The Company's gross reserve estimates are updated atleast annually based on the forecast of production profiles,
determined on an asset-by-asset basis, using appropriate petroleum engineering techniques. The estimates of
reserves and resources have been derived in accordance with the Society for Petroleum Engineers “Petroleum
Resources Management System (2018)". The changes to the reserves are generally on account of future development
Particulars
Reserves as of 31 March 2019*
Additions / (revision) during the year
Production during the year
Reserves as of 31 March 2020**
Additions / (revision) during the year
Production during the year
Reserves as of 31 March 2021***
Proved and probable reserves
Proved and probable reserves
(developed)
Oil
(mmstb)
164
12
(20)
156
(6)
(18)
132
Gas
(bscf)
140
30
(13)
157
(8)
(16)
133
Oil
(mmstb)
94
12
(20)
86
15
(18)
83
Gas
(bscf)
71
20
(13)
78
25
(16)
87
* Includes probable oil reserves of 60.77 mmstb (of which 9.80 mmstb is developed) and probable gas reserves of 47.86 bscf (of which 15.07
bscf is developed)
** Includes probable oil reserves of 67.78 mmstb (of which 12.36 mmstb is developed) and probable gas reserves of 59.36 bscf (of which 23.29
bscf is developed)
*** Includes probable oil reserves of 56.83 mmstb (of which 12.80 mmstb is developed) and probable gas reserves of 65.39 bscf (of which
27.22 bscf is developed)
mmboe = million barrels of oil equivalent
mmstb = million stock tank barrels
bscf = billion standard cubic feet
1 million metric tonnes = 7.4 mmstb
1 standard cubic meter =35.315 standard cubic feet
MBA = Mangala, Bhagyam & Aishwarya
EOR = Enhanced Oil Recovery
368
369
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
< BACK TO CONTENTS
(c )
the order of the NGT and the same was heard by
the Court on 11 September 2020 and granted an ad
interim stay against recoveries in pursuance of NGT
order. Management believes that the outcome of the
appeal will not have any significant adverse financial
impact on the Company which is supported by a
legal opinion obtained.
Ministry of Environment, Forest and Climate Change
("MOEF&CC") has revised emission norms for coal-
based power plants in India Accordingly, both captive
and independent coal-based power plants in India
are required to comply with these revised norms for
reduction of sulphur oxide (SOx) emissions for which
the current plant infrastructure is to be modified or
new equipments have to be installed. The regulatory
(d)
authorities vide notification dated 31 March 2021
have extended the timelines and now power plants
of Vedanta Limited is required to comply with the
norms by December 2024.
During the current year, the Company entered into
a `10,000 Crore long-term syndicated loan facility
agreement. This loan is secured by the way of pledge
over the shares held by the Company in Hindustan
Zinc Limited (HZL) representing 14.82% of the paid
up share capital of HZL along-with a non-disposal
undertaking in respect of its shareholding in HZL
to the extent of 50.1% of the paid up share capital
of HZL. As at 31 March 2021 the principal amount
participated for and outstanding under the facility is
`8,650 Crore.
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/
E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
42 OTHER MATTERS
a)
The Company is purchasing bauxite under long term
linkage arrangement with Orissa Mining Corporation
Ltd (hereafter referred as OMC) at provisional price
of `1,000/MT from October 2020 onwards based on
interim order dated 08 October 2020 of the Hon’ble
High Court of Odisha, which is subject to final
outcome of the writ petition filed by the Company as
mentioned below.
b)
The last successful e-auction based price discovery
was done by OMC in April 2019 at INR 673/MT
and supplied bauxite at this rate from Sep 2019
to Sep 2020 against an undertaking furnished by
the Company to compensate any differential price
discovered through future successful national
e-auctions. Though OMC conducted the next
e-auction on 31 August 2020 with floor price of
`1,707/MT determined on the basis of Rule 45 of
Minerals Concession Rules, 2016 (hereafter referred
as the Rules), no bidder participated at that floor
price and hence the auction was not successful.
However, OMC raised demand of `281 Crore on the
Company towards differential pricing and interest
for bauxite supplied till Sep 2020 considering the
auction base price of INR 1,707/MT.
The Company had then filed a writ petition before
Hon’ble High Court of Odisha in September 2020
for resumption of bauxite supply in accordance
with applicable Government of Odisha Gazette
notification dated 24 February 2018. Hon’ble High
Court has issued interim Order dated 08 October
2020 directing that the petitioner shall be permitted
to lift the quantity of bauxite mutually agreed under
the terms of the long-term linkage arrangement for
the remaining period of the financial year 2020-
21 on payment of `1,000/MT and furnishing an
undertaking for the differential amount, with the
floor price arrived at by OMC under the rules, along
with applicable interest, subject to final outcome of
the writ petition.
OMC re-conducted e-auction on March 9, 2021 with
floor price of `2,011/MT determined on the basis of
the Rules. However, again as no bidder participated
at that floor price, the auction was not successful.
On 18th Mar-21, Cuttack HC issued an order
disposing off the writ petition, directing that the
current arrangement of bauxite price @ 1000/T will
continue for the FY 2021-22.
Supported by legal opinions obtained, management
believes that the provisions of Rule 45 of Minerals
Concession Rules, 2016 are not applicable to
commercial sale of bauxite ore and hence, it is not
probable that the Company will have any financial
obligation towards the aforesaid commitments over
and above the price of `673/MT discovered vide last
successful e-auction. Accordingly, the Company
has not recognised above referred OMC debit note
of `281 Crore in respect of bauxite procured till
September 2020 and further differential price of
`130 Crore for subsequent procurements from 01
October 2020 till 31 March 2021.
However, as an abundant precaution, the company
has recognised purchase of Bauxite from October
2020 onwards at the at the aforesaid rate of INR
1,000/MT in line with the Odisha High court interim
order dated 08 October 2020.
In terms of various notifications issued by the
Ministry of Environment, Forest and Climate Change
(MoEF&CC), ash produced from thermal power plant
is required to be disposed of by the Company in the
manner specified in those notifications. However
compliance with manner of disposal as specified in
those notifications is not fully achieved due to lack
of demand from user agencies side. Consequently,
the Company is storing the ash produced in ash dyke
in accordance with conditions of the Environmental
Clearance & Consent to Operate granted by the
MOEF&CC, Office of State Pollution Control Board
(OSPCB) & Chhattisgarh Environment Conservation
Board (CECB) respectively as well as supplying
the same to user agencies. Management believes
storage of ash in ash dykes/ ash pond in accordance
with environmental clearances received by the
Company are sufficient compliance with the
applicable notifications issued by MoEF&CC which is
supported by a legal opinion obtained.
The National Green Tribunal (NGT) has also taken
cognizance of the matter and vide its order dated
12 February 2020 has ordered for levy of
environmental compensation on generating
companies on account of their failure to comply
the aforesaid notifications. The Company has filed
SLPs before the Hon’ble Supreme Court challenging
370
371
Financial statementsNotes forming part of the financial statements as at and for the year ended March 31, 2021Notes forming part of the financial statements as at and for the year ended March 31, 2021STANDALONE CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
CONSOLIDATED
FINANCIAL
STATEMENTS
< BACK TO CONTENTS
Independent Auditor’s Report
To the Members of Vedanta Limited
REPORT ON THE AUDIT OF THE CONSOLIDATED
IND AS FINANCIAL STATEMENTS
OPINION
We have audited the accompanying consolidated Ind AS
financial statements of Vedanta Limited (hereinafter
referred to as “the Holding Company”), its subsidiaries
(the Holding Company and its subsidiaries together
referred to as “the Group”) its associates and joint
ventures comprising of the consolidated Balance
sheet as at 31 March 2021, the consolidated Statement
of Profit and Loss, including other comprehensive
income, the consolidated Cash Flow Statement and the
consolidated Statement of Changes in Equity for the
year then ended, and notes to the consolidated Ind AS
financial statements, including a summary of significant
accounting policies and other explanatory information
(hereinafter referred to as “the consolidated Ind AS
financial statements”).
In our opinion and to the best of our information and
according to the explanations given to us and based
on the consideration of reports of other auditors
on separate financial statements and on the other
financial information of the subsidiaries, associates
and joint ventures, the aforesaid consolidated Ind AS
financial statements give the information required by
the Companies Act, 2013, as amended (“the Act”) in
the manner so required and give a true and fair view in
conformity with the accounting principles generally
accepted in India, of the consolidated state of affairs
of the Group, its associates and joint ventures as at 31
March 2021, their consolidated profit including other
comprehensive income, their consolidated cash flows and
the consolidated statement of changes in equity for the
year ended on that date.
BASIS FOR OPINION
We conducted our audit of the consolidated Ind AS
financial statements in accordance with the Standards
on Auditing (SAs), as specified under Section 143(10) of
the Act. Our responsibilities under those Standards are
further described in the ‘Auditor’s Responsibilities for the
Audit of the Consolidated Ind AS Financial Statements’
section of our report. We are independent of the
Group, its associates and joint ventures in accordance
with the ‘Code of Ethics’ issued by the Institute of
Chartered Accountants of India together with the ethical
requirements that are relevant to our audit of the financial
statements under the provisions of the Act and the
Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements
and the Code of Ethics. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide
a basis for our audit opinion on the consolidated Ind AS
financial statements.
EMPHASIS OF MATTER
We draw attention to note 3(c)(A)(viii) of the
accompanying consolidated Ind AS financial statements
which describes the uncertainty arising out of the
demands that have been raised on the Group, with
respect to government’s share of profit oil by the Director
General of Hydrocarbons and one of the pre-conditions
for the extension of the Production Sharing Contract
(PSC) for the Rajasthan oil block is the settlement of these
demands. While the Government has granted permission
to the Group to continue operations in the block till 31
July 2021 or signing of the PSC addendum, whichever is
earlier, the Group, based on external legal advice, believes
it is in compliance with the necessary conditions to
secure an extension of this PSC and that the demands are
untenable and hence no provision is required in respect of
these demands. Our opinion is not modified in respect of
this matter.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the consolidated Ind AS financial statements
for the financial year ended 31 March 2021. These
matters were addressed in the context of our audit of the
consolidated Ind AS financial statements as a whole, and
in forming our opinion thereon, and we do not provide
a separate opinion on these matters. For each matter
below, our description of how our audit addressed the
matter is provided in that context.
We have determined the matters described below to be
the key audit matters to be communicated in our report.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the consolidated
Ind AS financial statements section of our report,
including in relation to these matters. Accordingly, our
audit included the performance of procedures designed
to respond to our assessment of the risks of material
misstatement of the consolidated Ind AS financial
statements. The results of audit procedures performed
by us and by other auditors of components not audited by
us, as reported by them in their audit reports furnished
to us by the management, including those procedures
performed to address the matters below, provide
the basis for our audit opinion on the accompanying
consolidated Ind AS financial statements.
372
373
CONSOLIDATEDFinancial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Key audit matters
How our audit addressed the key audit matter
Key audit matters
How our audit addressed the key audit matter
< BACK TO CONTENTS
Recoverability of carrying value of property plant and equipment at Tuticorin (as described in note 3(c)(A)(vii) of the
consolidated Ind AS financial statements)
As at 31 March 2021, the Group had significant amounts
of property, plant and equipment, capital work-in-
progress and exploration intangible assets under
development which were carried at historical cost less
depreciation.
Assessed through an analysis of internal and external factors
impacting the Company, whether there were any indicators of
impairment in line with Ind AS 36.
Audit procedures included the following:
•
We focused our efforts on the Cash Generating Unit
(“CGU”) at Tuticorin within the copper segment as it had
identified impairment indicators and had a total carrying
value of `2,144 crores.
Recoverability of property plant and equipment has
been identified as a key audit matter due to:
•
•
The significance of the carrying value of assets
being assessed.
The withdrawal of the Holding Company’s licenses
to operate the copper plant.
The fact that the assessment of the recoverable
amount of the Group’s CGU involves significant
judgements about the future cash flow forecasts,
start date of the plant and the discount rate that is
applied.
The key judgements and estimates centered on the
likely outcome of the litigations, cash flow forecasts and
discount rate assumptions.
•
Specifically, in relation to the CGU at Tuticorin where impairment
indicators were identified, obtained and evaluated the valuation
models used to determine the recoverable amount by assessing the
key assumptions used by management, which included:
-
-
-
-
-
Assessed the basis for estimating the forecasted volumes and
the expected start date of the plant.
Tested the inputs used to compute the weighted average cost of
capital used to discount the impairment model.
Tested the valuation models for arithmetical accuracy.
Engaged valuation experts to assist in performance of some of
the above procedures.
Assessed the implications of withdrawal of Company’s license
to operate the copper plant including sensitivities of key
assumptions. Also, read the court judgement s in respect of
the case and external legal opinions in respect of the merits of
the appeal filed by the Company and assessed management’s
position through discussions with the legal counsel to
determine the basis of their conclusion.
•
•
Assessed the competence and objectivity of the experts engaged
by us.
Assessed the disclosures made by the Group in this regard.
Audit procedures in relation to evaluation of going concern included the
following:
Evaluation of Going Concern assumption of accounting (as described in note 3(c)(A)(xii) and 3(c)(A)(viii) of the consolidated Ind
AS financial statements)
The consolidated financial statements of the Group
are prepared on the going concern basis of accounting.
The evaluation of the appropriateness of adoption of
going concern assumption for preparation of these
consolidated financial statements performed has been
performed by the management of the Group because of
uncertainties in the market conditions including future
economic outlook on account of the prevailing global
pandemic COVID-19 and the uncertainty around the
extension of the Production Sharing Contract (PSC) of
the Rajasthan oil and gas block.
Obtained an understanding of the process followed by the
management and tested the internal controls over the liquidity
assessment, compliance with the debt covenants and preparation
of the cash flow forecast, and validation of the assumptions and
inputs used in the model to estimate the future cash flows.
Tested the inputs and assumptions used by the management in
the cash flow forecast against historical performance, budgets,
economic and industry indicators, publicly available information,
the Group’s strategic plans and benchmarking of key market related
conditions.
•
•
The Group has prepared a cash flow forecast for
next eighteen months from year end which involves
judgement and estimation of key variables.
The above has been considered as a key audit matter
as auditing the Group’s going concern assessment as
described above is complex and involves a high degree
of judgement to assess the reasonableness of the cash
flow forecasts, planned refinancing actions and other
assumptions used in the Group’s going concern analysis.
•
•
•
•
Assessed the key assumptions including those pertaining to
revenue and the timing of significant payments in the cash flow
forecast for the following eighteen months.
Tested management’s sensitivity analysis on key assumptions like
input prices, discount rate and selling prices to determine their
impact on the projections of future cash flows also on any possible
cash outgo for securing the extension of the Rajasthan oil and gas
block.
Compared the details of the Group’s long-term credit facilities to
the supporting documentation.
Assessed the relationship between the parent company and the
Group including inspection of various financings agreements to
examine whether the same were impacted by the affairs of the
parent company. Additionally, we assessed whether there are any
pre-existing arrangements between the parent and the Group to
alleviate the financial difficulties of the parent.
•
Assessed the disclosures made by the Group in this regard.
Audit procedures included the following:
Recoverability of disputed trade receivables in Power segment (as described in note 3(c)(B)(iii) and note 8 of the consolidated
Ind AS financial statements)
As of 31 March 2021 the value of disputed receivables
in the power segment aggregated to `3,206 crores.
Due to disagreements over the quantification or timing
of the receivables with customers, the recovery of
said receivables are subject to increased risk. Some of
these balances are also subject to litigation. The risk
is specifically related to receivables from Punjab State
Power Corporation Limited (PSPCL), GRIDCO and Tamil
Nadu Electricity Board. These receivables include long
outstanding balances as well and are also subject to
counter party credit risk and hence considered as a key
audit matter.
Examined external legal opinions in respect of the merits of the case
and assessed management’s position through discussions with the
management’s in-house legal team to determine the basis of their
conclusion.
Examined the relevant state regulatory commission, appellate
tribunal and court rulings.
Examined management’s assessment of recoverability of
receivables.
Examined the underlying power purchase agreements.
•
•
•
•
•
Obtained independent external lawyer confirmation from Legal
Counsel of the Group who is contesting the cases.
• Assessed the competence and objectivity of the Group’s experts.
• Assessed the disclosures made by the Group in this regard.
Accounting and disclosure of transactions with the parent company and its affiliates (as described in note 40(H), 40(I), 40(L),
40(M) and 40(N) of the consolidated Ind AS financial statements)
The Group has undertaken transactions with Vedanta
Resources Limited (‘VRL’), its parent company and
its affiliates pertaining to extension of loans and
guarantees; payment of brand and management fee;
obtaining guarantees and payment of commission in
consideration thereof; and payment of transaction
costs associated to the sale of structured investment.
Obtained and read the Group’s policies, processes and procedures in
respect of identification of such related parties, obtaining approval,
recording and disclosure of related party transactions.
Tested such related party transactions and balances with the
underlying contracts, confirmation letters and other supporting
documents provided by the Company.
Audit procedures included the following:
•
•
Accounting and disclosure of such related party
transactions has been identified as a key audit matter
due to:
• Significance of such related party transactions;
•
•
•
Risk of such transactions being executed without
proper authorisations;
Judgments and estimation involved in
determination of fair value on initial recognition of
loans and guarantees given and expected credit
losses on subsequent measurement; and
Risk of material information relating to such
transactions not getting disclosed in the financial
statements.
•
•
•
•
•
Obtained and assessed the reports issued by experts engaged
by the management for estimation of initial fair value of loans and
guarantees granted by it to VRL and its affiliates. We also tested
the methodology adopted by the Group for determination of
subsequent credit losses on such loans. We engaged valuation
experts to assist us in performing the said procedures.
Assessed the competence and objectivity of the external experts
engagement by the Company and experts engaged by us.
Held discussions and obtained representations from the
management in relation to such transactions.
Examined the approvals of the board and/or audit committee for
entering into these transactions.
Read the disclosures made in this regard in the financial statements
to assess whether relevant and material information have been
disclosed.
Claims and exposures relating to taxation and litigation (as described in note 3(c)(B)(ii), 3(c)(A)(viii), 35(e),38(D) and 39 of the
consolidated Ind AS financial statements)
The Group is subject to a large number of tax and
legal disputes, including objections raised by auditors
appointed by the Director General Hydrocarbons in
the oil and gas segment, which have been disclosed/
provided for in the financial statements based on the
facts and circumstances of each case.
Obtained an understanding of the process of identification of
claims, litigations and contingent liabilities and identified key
controls in the process. For selected controls we have performed
tests of controls.
Audit procedures included the following:-
•
Taxation and litigation exposures have been identified
as a key audit matter due to the complexities involved
in these matters, timescales involved for resolution
and the potential financial impact of these on the
financial statements. Further, significant management
judgement is involved in assessing the exposure of each
case and thus a higher risk involved on adequacy of
provision or disclosure of such cases.
•
Obtained the summary of Group’s legal and tax cases and critically
assessed management’s position through discussions with the
Legal Counsel, Head of Tax and operational management, on both
the probability of success in significant cases, and the magnitude of
any potential loss.
•
•
•
Examined external legal opinions (where considered necessary) and
other evidence to corroborate management’s assessment of the
legal claims.
Assessed the competence and objectivity of the Company’s
experts.
Engaged tax specialists to technically appraise the tax positions
taken by management with respect to local tax issues.
374
375
CONSOLIDATEDFinancial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
CONSOLIDATED CONTINUED...
Key audit matters
How our audit addressed the key audit matter
•
•
Assessed whether management assessment of similar cases
is consistent across the divisions and obtained management’s
explanations for differences, if any.
Assessed the relevant disclosures made within the financial
statements to address whether they reflect the facts and
circumstances of the respective tax and legal exposures and the
requirements of relevant accounting standards.
Recognition and measurement of Deferred Tax Assets including Minimum Alternate Tax (MAT) (as described in note 3(c)(A)(vi)
and 35 of the consolidated Ind AS financial statements)
Deferred tax assets as at 31 March 2021 includes MAT
credits of `8,232 crores which is available for utilisation
against future tax liabilities. Of the same, we focused
our efforts on MAT assets of `3,701 crores which belong
to the Holding company out of which `340 crores is
expected to be utilised in the fourteenth year, fifteen
years being the maximum permissible time period to
utilise the same.
Obtained an understanding of the management’s process for
estimating the recoverability of deferred tax assets and identified
key controls in the process. For selected controls we have
performed tests of controls.
Audit procedures included the following:-
•
•
Obtained and analysed the future projections of taxable profits
estimated by management assessed key assumptions used,
including the analysis of the consistency of the actual results
obtained by the various segments with those projected in the
previous year. We further obtained evidence of the approval of the
budgeted results included in the current year’s projections, and the
future cash flow projections.
•
Tested the computation of the amounts recognised as deferred tax
assets.
• Assessed the disclosures made by the Group in this regard.
Additionally, ESL Steel Limited, one of the constituents
of the Group, has recognised deferred tax assets of
`3,184 crores during the current year.
The analysis of the recognition and recoverability
of such deferred tax assets has been identified as a
key audit matter because the assessment process
involves judgement regarding the future profitability
and likelihood of the realisation of these assets, in
particular whether there will be taxable profits in future
periods that support the recognition of these assets.
This requires assumptions regarding future profitability,
which is inherently uncertain. Accordingly, the same is
considered as a key audit matter.
We have determined that there are no other key audit
matters to communicate in our report.
INFORMATION OTHER THAN THE FINANCIAL
STATEMENTS AND AUDITOR’S REPORT THEREON
The Holding Company’s Board of Directors is responsible
for the other information. The other information
comprises the information included in the Annual
report, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements
does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated
financial statements, our responsibility is to read the
other information and, in doing so, consider whether
such other information is materially inconsistent
with the consolidated financial statements or our
knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we
have performed, we conclude that there is a material
misstatement of this other information, we are required
to report that fact. We have nothing to report in this
regard.
RESPONSIBILITIES OF MANAGEMENT AND
THOSE CHARGED WITH GOVERNANCE FOR THE
CONSOLIDATED IND AS FINANCIAL STATEMENTS
The Holding Company’s Board of Directors is responsible
for the preparation and presentation of these
consolidated Ind AS financial statements in terms of the
requirements of the Act that give a true and fair view of
the consolidated financial position, consolidated financial
performance including other comprehensive income,
consolidated cash flows and consolidated statement of
changes in equity of the Group including its associates
and joint ventures in accordance with the accounting
principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under
Section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended. The
respective Board of Directors of the companies included
in the Group and of its associates and joint ventures are
responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act
for safeguarding of the assets of the Group and of its
associates and joint ventures and for preventing and
detecting frauds and other irregularities; selection
and application of appropriate accounting policies;
making judgements and estimates that are reasonable
and prudent; and the design, implementation and
< BACK TO CONTENTS
maintenance of adequate internal financial controls, that
were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant
to the preparation and presentation of the consolidated
Ind AS financial statements that give a true and fair view
and are free from material misstatement, whether due
to fraud or error, which have been used for the purpose
of preparation of the consolidated Ind AS financial
statements by the Directors of the Holding Company,
as aforesaid.
In preparing the consolidated Ind AS financial statements,
the respective Board of Directors of the companies
included in the Group and of its associates and joint
ventures are responsible for assessing the ability of the
Group and of its associates and joint ventures to continue
as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern
basis of accounting unless management either intends
to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
Those respective Board of Directors of the companies
included in the Group and of its associates and Joint
ventures are also responsible for overseeing the financial
reporting process of the Group and of its associates and
joint ventures.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE
CONSOLIDATED IND AS FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about
whether the consolidated Ind AS financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users
taken on the basis of these consolidated Ind AS financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgement and maintain professional
skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement
of the consolidated Ind AS financial statements,
whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the Holding
Company has adequate internal financial controls with
reference to financial statements in place and the
operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a
material uncertainty exists related to events or
conditions that may cast significant doubt on the
ability of the Group and its associates and joint
ventures to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report
to the related disclosures in the consolidated Ind
AS financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or
conditions may cause the Group and its associates and
joint ventures to cease to continue as a going concern.
Evaluate the overall presentation, structure
and content of the consolidated Ind AS financial
statements, including the disclosures, and whether the
consolidated Ind AS financial statements represent the
underlying transactions and events in a manner that
achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group and its associates and joint
ventures of which we are the independent auditors
and whose financial information we have audited, to
express an opinion on the consolidated Ind AS financial
statements. We are responsible for the direction,
supervision and performance of the audit of the
financial statements of such entities included in the
consolidated financial statements of which we are the
independent auditors. For the other entities included
in the consolidated Ind AS financial statements,
which have been audited by other auditors, such
other auditors remain responsible for the direction,
supervision and performance of the audits carried out
by them. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance
of the Holding Company and such other entities included
in the consolidated Ind AS financial statements of which
we are the independent auditors regarding, among
other matters, the planned scope and timing of the audit
and significant audit findings, including any significant
deficiencies in internal control that we identify during
our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
376
377
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | < BACK TO CONTENTS
belief were necessary for the purposes of our audit of the
aforesaid consolidated Ind AS financial statements;
In our opinion, proper books of account as
(b)
required by law relating to preparation of the aforesaid
consolidation of the financial statements have been kept
so far as it appears from our examination of those books
and reports of the other auditors;
(c) The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss including the Statement of
Other Comprehensive Income, the Consolidated Cash
Flow Statement and Consolidated Statement of Changes
in Equity dealt with by this Report are in agreement
with the books of account maintained for the purpose
of preparation of the consolidated Ind AS financial
statements;
In our opinion, the aforesaid consolidated Ind AS
(d)
financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read
with Companies (Indian Accounting Standards) Rules,
2015, as amended;
(e) On the basis of the written representations received
from the directors of the Holding Company as on 31
March 2021 taken on record by the Board of Directors of
the Holding Company and the reports of the statutory
auditors who are appointed under Section 139 of the
Act, of its subsidiary companies, associate companies
and joint ventures, none of the directors of the Group’s
companies, its associates and joint controlled entities,
incorporated in India, is disqualified as on 31 March 2021
from being appointed as a director in terms of Section 164
(2) of the Act;
(f) The matter described in Qualified opinion paragraph
in “Annexure 1” to this report, in our opinion, may have an
adverse effect on the functioning of the Company;
(g) With respect to the adequacy and the operating
effectiveness of the internal financial controls over
financial reporting with reference to these consolidated
Ind AS financial statements of the Holding Company and
its subsidiary companies, associate companies and joint
ventures , incorporated in India, refer to our separate
Report in “Annexure 1” to this report;
In our opinion and based on the consideration of
(h)
reports of other statutory auditors of the subsidiaries,
associates and joint ventures in India, the managerial
remuneration for the year ended 31 March 2021 has been
paid/provided by the Holding Company, its subsidiaries,
associates and joint ventures incorporated in India to
their directors in accordance with the provisions of
Section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, as amended,
in our opinion and to the best of our information and
according to the explanations given to us and based on
the consideration of the report of the other auditors on
separate financial statements as also the other financial
information of the subsidiaries, associates and joint
ventures, as noted in the ‘Other matter’ paragraph:
The consolidated Ind AS financial statements
i.
disclose the impact of pending litigations on its
consolidated financial position of the Group, its
associates and joint ventures in its consolidated Ind AS
financial statements – Refer Note 3(c)(A)(viii), 35(e), 38(D)
and 39 to the consolidated Ind AS financial statements;
ii.
The Group, its associates and joint ventures did
not have any material foreseeable losses in long-term
contracts including derivative contracts during the year
ended 31 March 2021;
iii. There has been no delay in transferring amounts,
required to be transferred, to the Investor Education and
Protection Fund by the Holding Company, its subsidiaries,
associates and joint ventures, incorporated in India during
the year ended 31 March 2021.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Place: Mumbai
Date: 13 May 2021
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAQ2392
CONSOLIDATED CONTINUED...
matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged
with governance, we determine those matters that were
of most significance in the audit of the consolidated Ind
AS financial statements for the financial year ended 31
March 2021 and are therefore the key audit matters. We
describe these matters in our auditor’s report unless
law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in
our report because the adverse consequences of doing
so would reasonably be expected to outweigh the public
interest benefits of such communication.
OTHER MATTER
(a) We did not audit the financial statements and
other financial information, in respect of 16 subsidiaries,
whose Ind AS financial statements include total assets of
`22,617 crores as at 31 March 2021, and total revenues of
`7,956 crores and net cash outflows of `142 crores for the
year ended on that date. These Ind AS financial statement
and other financial information have been audited by
other auditors, which financial statements, other financial
information and auditor’s reports have been furnished to
us by the management. The consolidated Ind AS financial
statements also include the Group’s share of net profit
of `Nil for the year ended 31 March 2021, as considered
in the consolidated Ind AS financial statements, in
respect of 1 associate and 1 joint venture whose financial
statements, other financial information have been
audited by other auditors and whose reports have been
furnished to us by the Management. Our opinion on
the consolidated Ind AS financial statements, in so far
as it relates to the amounts and disclosures included in
respect of these subsidiaries, associate and joint venture
our report in terms of sub-Sections (3) of Section 143 of
the Act, in so far as it relates to the aforesaid subsidiaries,
and associate, is based solely on the report(s) of such
other auditors.
Certain of these subsidiaries, associate and joint venture
are located outside India whose financial statements
and other financial information have been prepared in
accordance with accounting principles generally accepted
in their respective countries and which have been audited
by other auditors under generally accepted auditing
standards applicable in their respective countries. The
Holding Company’s management has converted the
financial statements of such subsidiaries and associate
located outside India from accounting principles generally
accepted in their respective countries to accounting
principles generally accepted in India. We have audited
these conversion adjustments made by the Holding
Company’s management. Our opinion in so far as it
relates to the balances and affairs of such subsidiaries,
associate and joint venture located outside India is
based on the report of other auditors and the conversion
adjustments prepared by the management of the Holding
Company and audited by us.
(b) The accompanying consolidated Ind AS financial
statements include unaudited financial statements
and other unaudited financial information in respect
of 3 subsidiaries whose financial statements and other
financial information reflect total assets of `2,108 crores
as at 31 March 2021, and total revenues of `317 crores
and net cash outflows of `5 crores for the year ended
on that date. These unaudited financial statements
and other unaudited financial information have been
furnished to us by the management. The consolidated
Ind AS financial statements also include the Group’s
share of net profit of `Nil for the year ended 31 March
2021, as considered in the consolidated Ind AS financial
statements, in respect of 1 associate and 3 joint ventures,
whose financial statements other financial information
have not been audited and whose unaudited financial
statements and other unaudited financial information
have been furnished to us by the Management. The
consolidated Ind AS financial statements also include
the Group’s share of total assets of `115 crores as at
31 March 2021 in respect of an unincorporated joint
venture not operated by the Group. The Ind AS financial
statements and other financial information of the said
unincorporated joint venture have not been audited and
such unaudited financial statements and other unaudited
financial information have been furnished to us by the
management.
Our opinion, in so far as it relates amounts and
disclosures included in respect of these subsidiaries,
unincorporated joint venture, associate and joint
ventures, and our report in terms of sub-Sections (3)
of Section 143 of the Act in so far as it relates to the
aforesaid subsidiaries, unincorporated joint venture,
associate and joint ventures, is based solely on such
unaudited financial statements and other unaudited
financial information. In our opinion and according to
the information and explanations given to us by the
Management, these financial statements and other
financial information are not material to the Group.
Our opinion above on the consolidated Ind AS financial
statements, and our report on Other Legal and
Regulatory Requirements below, is not modified in
respect of the above matters with respect to our reliance
on the work done and the reports of the other auditors
and the unaudited financial statements and unaudited
other financial information certified by the Management.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
As required by Section 143(3) of the Act, based on our
audit and on the consideration of report of the other
auditors on separate financial statements and the other
financial information of subsidiaries, associates and joint
ventures, as noted in the ‘other matter’ paragraph we
report, to the extent applicable, that:
(a) We/the other auditors whose report we have relied
upon have sought and obtained all the information and
explanations which to the best of our knowledge and
378
379
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | CONSOLIDATED CONTINUED...
Annexure 1 to the Independent Auditor's Report of even date on the
Consolidated Ind AS Financial Statements of Vedanta Limted
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Ind AS
financial statements of Vedanta Limited as of and for
the year ended 31 March 2021, we have audited the
internal financial controls over financial reporting of
Vedanta Limited (hereinafter referred to as the “Holding
Company”) and its subsidiary companies (collectively
referred to as the “Group”), its associate companies and
joint ventures, which are companies incorporated in India,
as of that date.
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL
FINANCIAL CONTROLS
The respective Board of Directors of the Holding
Company, its 15 subsidiary companies, its 1 associate
company and 3 joint ventures, which are companies
incorporated in India, are responsible for establishing
and maintaining internal financial controls based on
the internal control over financial reporting criteria
established by the Holding Company considering the
essential components of internal control stated in the
Committee of Sponsoring Organisations of the Treadway
Commission (2013 Framework) (“COSO 2013 Criteria”).
These responsibilities include the design, implementation
and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence
to the respective company’s policies, the safeguarding
of its assets, the prevention and detection of frauds and
errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial
information, as required under the Act.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the
Company’s internal financial controls over financial
reporting with reference to these consolidated financial
statements based on our audit. We conducted our
audit in accordance with the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) and the Standards on Auditing, both,
issued by Institute of Chartered Accountants of India,
and deemed to be prescribed under Section 143(10) of
the Act, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance
Note require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable
assurance about whether adequate internal financial
controls over financial reporting with reference to these
consolidated Ind AS financial statements was established
and maintained and if such controls operated effectively
in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls over financial reporting with reference to these
consolidated Ind AS financial statements and their
operating effectiveness. Our audit of internal financial
controls over financial reporting included obtaining an
understanding of internal financial controls over financial
reporting with reference to these consolidated Ind AS
financial statements, assessing the risk that a material
weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based
on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial
statements, whether due to fraud or error.
We believe that the audit evidence we have obtained
and the audit evidence obtained by the other auditors in
terms of their reports referred to in the Other Matters
paragraph below, is sufficient and appropriate to provide
a basis for our qualified audit opinion on the internal
financial controls over financial reporting with reference
to these consolidated Ind AS financial statements.
MEANING OF INTERNAL FINANCIAL CONTROLS
OVER FINANCIAL REPORTING WITH REFERENCE TO
CONSOLIDATED IND AS FINANCIAL STATEMENTS
A company’s internal financial control over financial
reporting with reference to these consolidated Ind AS
financial statements is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for
external purposes in accordance with generally accepted
accounting principles. A company’s internal financial
control over financial reporting with reference to these
consolidated financial statements includes those policies
and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets
of the Company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit
preparation of financial statements in accordance
with generally accepted accounting principles, and
that receipts and expenditures of the Company are
being made only in accordance with authorisations of
management and directors of the Company; and (3)
provide reasonable assurance regarding prevention or
timely detection of unauthorised acquisition, use, or
disposition of the Company’s assets that could have a
material effect on the financial statements.
< BACK TO CONTENTS
INHERENT LIMITATIONS OF INTERNAL FINANCIAL
CONTROLS OVER FINANCIAL REPORTING WITH
REFERENCE TO CONSOLIDATED FINANCIAL
STATEMENTS
Because of the inherent limitations of internal financial
controls over financial reporting with reference to these
consolidated Ind AS financial statements, including the
possibility of collusion or improper management override
of controls, material misstatements due to error or fraud
may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial
reporting with reference to these consolidated Ind AS
financial statements to future periods are subject to
the risk that the internal financial control over financial
reporting with reference to these consolidated financial
statements may become inadequate because of changes
in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
QUALIFIED OPINION
According to the information and explanations given to us
and based on our audit, the following material weakness
has been identified in the effectiveness of the Company’s
internal financial controls over financial reporting as at 31
March 2021:
The Group’s internal controls for benchmarking the terms
and authorisation of loans and guarantees between itself
and its controlling shareholders and their affiliates were
not effective, which could potentially result in loans being
advanced and guarantees being issued in a manner which
may impact the recognition, measurement and disclosure
of such transactions in the financial statements.
A ‘material weakness’ is a deficiency, or a combination
of deficiencies, in internal financial control over financial
reporting, such that there is a reasonable possibility
that a material misstatement of the Company’s annual
or interim financial statements will not be prevented or
detected on a timely basis.
In our opinion, except for the possible effects of the
material weakness described above on the achievement
of the objectives of the control criteria, the Holding
Company, its subsidiary companies, its associate
company and joint ventures, which are companies
incorporated in India, have, maintained in all material
respects, adequate internal financial controls over
financial reporting with reference to these consolidated
Ind AS financial statements and such internal financial
controls over financial reporting with reference to these
consolidated Ind AS financial statements were operating
effectively as at 31 March 2021, based on the internal
control over financial reporting criteria established by the
Holding Company considering the essential components
of internal control stated in the COSO 2013 criterion.
OTHER MATTERS
Our report under Section 143(3)(i) of the Act on the
adequacy and operating effectiveness of the internal
financial controls over financial reporting with reference
to these consolidated financial statements of the Holding
Company, insofar as it relates to 4 subsidiary companies,
which is a company incorporated in India, is based on the
corresponding reports of the auditors of such subsidiary.
EXPLANATORY PARAGRAPH
We also have audited, in accordance with the Standards
on Auditing issued by the Institute of Chartered
Accountants of India, as specified under Section 143(10)
of the Act, the consolidated financial statements of the
Holding Company, which comprise the Balance Sheet as
at 31 March 2021, and the related Statement of Profit and
Loss including the statement of Other Comprehensive
Income, the Cash Flow Statement and the Statement
of Changes in Equity for the year then ended, and notes
to the consolidated financial statements, including a
summary of significant accounting policies and other
explanatory information. The above stated material
weakness was considered in determining the nature,
timing and extent of audit tests applied in our audit of
the 31 March 2021 consolidated financial statements of
the Holding Company and, this report does not affect
our report of even date, which expressed an unmodified
opinion on those consolidated financial statements.
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E/E300005
Place: Mumbai
Date: 13 May 2021
per Sudhir Soni
Partner
Membership Number: 41870
UDIN: 21041870AAAAAQ2392
380
381
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | CONSOLIDATED CONTINUED...
Balance Sheet
as at 31 March 2021
Particulars
ASSETS
Non-current assets
Property, Plant and Equipment
Capital work-in-progress
Intangible assets
Exploration intangible assets under development
Financial assets
Investments
Trade receivables
Loans
Derivatives
Others
Deferred tax assets (net)
Income tax assets (net)
Other non-current assets
Total non-current assets
Current assets
Inventories
Financial assets
Investments
Trade receivables
Cash and cash equivalents
Other bank balances
Loans
Derivatives
Others
Income tax assets (net)
Other current assets
Total current assets
Total Assets
EQUITY AND LIABILITIES
Equity
Equity Share Capital
Other Equity
Equity attributable to owners of Vedanta Limited
Non-controlling interests
Total Equity
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
Derivatives
Other financial liabilities
Provisions
Deferred tax liabilities (net)
Other non-current liabilities
Total non-current liabilities
Current liabilities
Financial liabilities
Borrowings
Operational buyers’ credit/suppliers’ credit
Trade payables
Derivatives
Other financial liabilities
Provisions
Income tax liabilities (net)
Other current liabilities
Total current liabilities
Total Equity and Liabilities
Note
As at
31 March 2021
(` in crores)
As at
31 March 2020
6
6
6
6
7A
8
9
10
35
35
11
12
7B
8
13
14
9
10
11
15
16
17
19A
21
23
35
24
19B
20B, 2(C)
20A, 2(C)
21
23
24
89,429
13,880
1,041
2,434
156
3,158
5,069
-
2,520
5,860
2,748
3,210
1,29,505
9,923
16,504
3,491
4,854
11,775
2,019
70
4,245
7
3,304
56,192
1,85,697
372
61,906
62,278
15,138
77,416
37,962
76
1,445
3,132
2,215
4,327
49,157
3,715
7,983
7,892
279
28,803
353
277
9,822
59,124
1,85,697
88,022
16,837
882
1,748
95
3,111
17
3
2,523
6,889
2,645
3,330
1,26,102
11,335
24,658
2,697
5,117
7,385
85
692
2,406
7
3,138
57,520
1,83,622
372
54,263
54,635
17,112
71,747
36,724
45
1,501
2,828
2,885
4,570
48,553
13,076
8,945
8,027
96
21,162
355
188
11,473
63,322
1,83,622
< BACK TO CONTENTS
Statement of Profit and Loss
for the year ended 31 March 2021
Particulars
Revenue from operations
Other operating income
Other income
Total Income
EXPENSES
Cost of materials consumed
Purchases of stock-in-trade
Changes in inventories of finished goods, work-in-progress and stock-in-trade
Power & fuel charges
Employee benefits expense
Finance costs
Depreciation, depletion and amortisation expense
Other expenses
Total expenses
Profit before exceptional items and tax
Net exceptional loss
Profit/(Loss) before tax
Tax expense/(benefit):
On other than exceptional items
Net current tax expense
Net deferred tax expense
Deferred tax on intra group profit distribution (including from accumulated profits)
Other deferred tax benefit
On exceptional items
Net Deferred tax benefit
Net tax expense/(benefit):
Profit/(Loss) after tax for the year before share in loss of jointly controlled entities
and associates and non-controlling interests
Add: Share in loss of jointly controlled entities and associates
Profit/(Loss) for the year after share in loss of jointly controlled entities and
associates (A)
Other Comprehensive Income
Items that will not be reclassified to profit or loss
Re-measurement loss on defined benefit plans
Tax (expense)/credit
Gain/(loss) on FVOCI equity investment
Items that will be reclassified to profit or loss
Net (loss)/gain on cash flow hedges recognised during the year
Tax credit/(expense)
Net gain/(loss) on cash flow hedges recycled to profit or loss
Tax (expense)/credit
Exchange differences on translation
Tax (expense)/credit
Total other comprehensive income (B)
Total comprehensive income/(loss) for the year (A+B)
Profit/(Loss) attributable to:
Owners of Vedanta Limited
Non-controlling interests
Other comprehensive income attributable to:
Owners of Vedanta Limited
Non-controlling interests
Total comprehensive income/(loss) attributable to:
Owners of Vedanta Limited
Non-controlling interests
Earnings/(Loss) per equity share (`):
- Basic
- Diluted
See accompanying notes to the financial statements
Note
25
26
27
28
29
32
6
33
34
35
17
17
17
36
(` in crores except otherwise stated)
Year ended
Year ended
31 March 2020
31 March 2021
83,545
86,863
902
1,158
2,510
3,421
86,957
91,442
22,849
41
792
13,674
2,861
5,210
7,638
20,486
73,551
17,891
(678)
17,213
2,066
268
869
(601)
(154)
2,180
15,033
(1)
15,032
(1)
(11)
63
51
(253)
87
188
(61)
252
(61)
152
203
15,235
11,602
3,430
110
93
11,712
3,523
31.32
31.13
21,261
225
1,017
16,606
2,672
4,977
9,093
21,979
77,830
9,127
(17,386)
(8,259)
1,788
1,217
1,701
(484)
(6,521)
(3,516)
(4,743)
(1)
(4,744)
(210)
71
(74)
(213)
127
(44)
(33)
12
833
34
929
716
(4,028)
(6,664)
1,920
839
(123)
(5,825)
1,797
(18.00)
(18.00)
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
382
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
383
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
CONSOLIDATED CONTINUED...
< BACK TO CONTENTS
Statement of Cash Flows
for the year ended 31 March 2021
Statement of Cash Flows
for the year ended 31 March 2021
Particulars
CASH FLOWS FROM OPERATING ACTIVITIES
Profit/(Loss) before taxation
Adjustments for:
Depreciation, depletion and amortisation
Capital work-in-progress written off/impairment charge
Other exceptional items
Provision for doubtful debts/advance/bad debts written off
Exploration costs written off
Fair value gain on financial assets held at fair value through profit or loss
(Profit)/Loss on sale/discard of property, plant and equipment (net)
Foreign exchange (gain)/loss (net)
Unwinding of discount on decommissioning liability
Share based payment expense
Interest and dividend income
Interest expenses
Deferred government grant
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
Decrease in inventories
Increase/(decrease) in trade and other payable
Cash generated from operation
Income taxes paid (net of refund)
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Consideration paid for business acquisition (net of cash and cash equivalents acquired)
Purchases of property, plant and equipment (including intangibles)
Proceeds from sale of property, plant and equipment
Loans repaid by related parties (Refer note 40)
Loans given to related parties (Refer note 40)
Short-term deposits made
Proceeds from redemption short-term deposits
Short-term investments made
Proceeds from sale of short-term investments
Interest received
Dividends received
Payment made to site restoration fund
Proceeds on liquidation of structured investments
Payment towards structured investments
Net cash used in investing activities
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
17,213
(8,259)
7,662
244
434
308
7
(934)
(75)
(119)
72
59
(2,107)
5,123
(228)
(3,215)
1,409
235
26,088
(2,108)
23,980
(45)
(6,886)
168
1,112
(7,660)
(18,040)
14,563
(75,160)
83,330
2,035
2
(169)
-
-
(6,750)
9,152
17,080
306
121
3
(558)
56
317
96
72
(1,683)
4,874
(205)
462
1,990
(3,389)
20,435
(1,135)
19,300
(33)
(7,814)
145
-
-
(11,190)
4,564
(98,358)
1,03,339
830
18
(37)
3,077
(435)
(5,894)
Particulars
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of short-term borrowings (net)
Proceeds from current borrowings
Repayment of current borrowings
Proceeds from long-term borrowings
Repayment of long-term borrowings
Interest paid
Payment of dividends to equity holders of the parent, including dividend distribution tax
Loan given to parent and its affiliates in excess of fair value (Refer note 40(I))
Payment of dividends to non-controlling interests
Payment for acquiring non-controlling interest
Payment of lease liabilities
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the year (Refer note 13)
Cash and cash equivalents at end of the year (Refer note 13)
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
(9,593)
11,298
(11,056)
16,707
(9,577)
(5,348)
(3,519)
(536)
(5,603)
-
(338)
(17,565)
72
(263)
5,117
4,854
(11,264)
4,473
(4,397)
11,826
(8,996)
(5,322)
(1,444)
-
-
(107)
(316)
(15,547)
(31)
(2,172)
7,289
5,117
Notes:
1. The figures in parentheses indicate outflow.
2.
The above cash flow has been prepared under the “Indirect Method” as set out in Indian Accounting Standard (Ind AS) 7 –
statement of cash flows
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/
E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
384
385
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 |
CONSOLIDATED CONTINUED...
< BACK TO CONTENTS
Statement of Changes in Equity
for the year ended 31 March 2021
Statement of Changes in Equity
for the year ended 31 March 2021
A. EQUITY SHARE CAPITAL
Equity shares of `1 each issued, subscribed and fully paid
As at 31 March 2021 and 31 March 2020
B. OTHER EQUITY
Number of shares
(in crores)
372
Amount
(` in crores)
372
Reserves and surplus
Items of OCI
(` in crores)
Capital
reserve
Securities
premium
Retained
earnings
18,768
-
-
19,009
-
-
1,711
(6,664)
(92)
-
(6,756)
Other
reserves
(Refer
note
below)
20,395
-
-
-
75
52
(52)
7
191
(7)
(191)
-
-
(1,696)
18,552
-
-
19,009
-
-
(6,491)
11,602
(7)
20,220
-
-
-
11,595
-
-
-
-
Particulars
Balance as at 01 April 2019
Loss for the year
Other comprehensive income
for the year (net of tax impact)
Total comprehensive income
for the year
Recognition of share based
payment
Stock options cancelled during
the year
Exercise of stock option
Transfer from debenture
redemption reserve (net)
Recognition of put option
liability/derecognition of
non-controlling interest
Acquisition of non-controlling
interests in Electrosteel Steel
Limited
Dividend, including tax on
dividend (Refer note 37)
Balance as at 31 March 2020
Profit for the year
Other comprehensive income
for the year (net of tax impact)
Total comprehensive income
for the year
Recognition of share based
payment
Stock options cancelled during
the year
Exercise of stock option
Transfer from debenture
redemption reserve (net)
Recognition of put option
liability/derecognition of
non-controlling interest
Effect of fair valuation of
inter-company loan*
Acquisition of FACOR
(Refer note 4(a))
Dividend (Refer note 37)
Balance as at 31 March 2021
-
-
-
-
-
(343)
127
-
-
-
-
-
(163)
-
123
60
(92)
(14)
528
14
(528)
-
(536)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Foreign
currency
translation
reserve
Equity
instruments
through OCI
Effective
portion of
cash flow
hedges
Total
other
equity
Non-
controlling
interests
Total
2,011
-
959
104
-
(74)
(73)
-
46
61,925
(6,664)
839
15,227
1,920
(123)
77,152
(4,744)
716
959
(74)
46
(5,825)
1,797
(4,028)
-
-
-
-
-
-
-
2,970
-
75
75
-
-
-
-
-
-
-
-
-
-
-
-
-
-
30
-
63
63
-
-
-
-
-
-
-
-
-
-
-
-
-
75
-
-
-
-
-
-
-
75
-
-
-
(343)
322
(21)
127
(234)
(107)
-
(1,696)
-
(1,696)
(27)
-
(21)
54,263
11,602
110
17,112
3,430
93
71,375
15,032
203
(21)
11,712
3,523
15,235
-
-
-
-
-
-
-
58
(32)
0
-
-
-
-
-
58
(32)
0
-
(163)
137
(26)
(536)
(536)
123
(31)
92
-
-
-
-
58
-
18,512
-
19,009
(3,519)
1,623
-
19,672
-
3,045
-
93
-
(48)
(3,519)
61,906
(5,603)
15,138
(9,122)
77,044
Note:
Other reserves comprises:
Capital
redemption
reserve
Debenture
redemption
reserve
23
-
-
-
-
1,303
-
-
-
(191)
Preference
share
redemption
reserve
3,087
-
-
-
-
Capital
reserve on
consolidation
Share based
payment
reserve
Legal
reserve
Treasury
shares
General
reserve
Total
(` in crores)
10
-
-
-
-
249
75
(52)
(23)
-
25
-
(397)
-
16,095
-
20,395
75
-
-
-
-
16
-
-
-
-
(52)
(7)
(191)
23
1,112
3,087
10
249
25
(381)
16,095
20,220
-
-
-
-
-
-
-
(528)
-
-
-
-
-
-
-
-
58
(92)
(44)
-
-
-
-
-
-
-
58
-
-
-
-
-
58
(92)
14
(528)
23
584
3,087
10
171
25
(323)
16,095
19,672
Particulars
Balance as at 01 April 2019
Recognition of share based
payment
Stock options cancelled
during the year
Exercise of stock options
Transfer to retained
earnings
Balance as at 31 March
2020
Recognition of share based
payment
Stock options cancelled
during the year
Exercise of stock options
Transfer to retained
earnings
Balance as at 31 March
2021
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Chartered Accountants
ICAI Firm Registration No. 301003E/
E300005
Navin Agarwal
Executive Vice-Chairman and
Whole-Time Director
DIN 00006303
Sunil Duggal
Whole-Time Director and
Chief Executive Officer
DIN 07291685
per Sudhir Soni
Partner
Membership No: 41870
Place: Mumbai
Date: 13 May 2021
Place: New Delhi
Date: 13 May 2021
Prerna Halwasiya
Company Secretary and Compliance Officer
ICSI Membership No. A20856
* An amount of US$46 million (`336 crores) was originally recognised as a transaction with the shareholder and the same was increased by
US$79 million (`581 crores) upon revision in terms. Of the same, US$52 million (`381 crores) was reversed on a subsequent modification
during the year. Refer note 40(I) for further details.
386
387
Financial statementsVEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | 1
GROUP OVERVIEW
Vedanta Limited (“the Company”) and its consolidated
subsidiaries (collectively, the “Group”) is a diversified
natural resource group engaged in exploring, extracting
and processing minerals and oil and gas. The Group
engages in the exploration, production and sale of
zinc, lead, silver, copper, aluminium, iron ore and oil
and gas and have a presence across India, South Africa,
Namibia, Ireland, Australia, Liberia and UAE. The Group
is also in the business of commercial power generation,
steel manufacturing and port operations in India and
manufacturing of glass substrate in South Korea
and Taiwan.
The Company was incorporated on 08 September 1975
under the laws of the Republic of India. The registered
office of the Company is situated at 1st Floor, ‘C’ wing,
Unit 103, Corporate Avenue, Atul Projects, Chakala,
Andheri (East), Mumbai – 400 092, Maharashtra. The
Company’s shares are listed on National Stock Exchange
and Bombay Stock Exchange in India. In June 2007,
the Company completed its initial public offering of
American Depositary Shares, or ADS, each representing
four equity shares, and listed its ADSs on the New York
Stock Exchange. In July 2009, the Company completed
its follow-on offering of an additional 131,906,011 ADSs,
each representing four equity shares, which are listed on
the New York Stock Exchange.
The Company is majority owned by Twin Star Holdings
Limited (“Twin Star”), Finsider International Company
Limited (“Finsider”), Vedanta Holdings Mauritius II Limited
(“VHM2L”), West Globe Limited (“West Globe”) and Welter
Trading Limited (“Welter”) which are in turn wholly-owned
subsidiaries of Vedanta Resources PLC (“VRPLC”), which
was a public limited company incorporated in the United
Kingdom and listed on the London Stock Exchange
(VRPLC has been delisted from London Stock Exchange
on 01 October 2018 and is renamed as “Vedanta
Resources Limited” (“VRL”) with effect from 29 October
2018). Twin Star, Finsider, VHM2L, West Globe and Welter
held 37.1%, 10.8%, 5.0%, 1.2% and 1.0% respectively of
the Company’s equity as at 31 March 2021.
Details of Group’s various businesses are as follows.
The Group’s percentage holdings in each of the below
businesses are disclosed in note 42.
Zinc India business is owned and operated by
Hindustan Zinc Limited (“HZL”).
Zinc international business is comprised of Skorpion
mine and refinery in Namibia operated through
THL Zinc Namibia Holdings (Proprietary) Limited
(“Skorpion”), Lisheen mine in Ireland operated through
Vedanta Lisheen Holdings Limited (“Lisheen”) (Lisheen
mine ceased operations in December 2015) and Black
Mountain Mining (Proprietary) Limited (“BMM”),
whose assets include the operational Black Mountain
mine and the Gamsberg mine project located in South
Africa.
The Group’s oil and gas business is owned and
operated by the Company and its subsidiary, Cairn
Energy Hydrocarbons Limited and consists of
exploration and development and production of oil
and gas.
The Group’s iron ore business is owned by the
Company, and by two wholly-owned subsidiaries
of the Company i.e. Sesa Resources Limited and
Sesa Mining Corporation Limited and consists of
exploration, mining and processing of iron ore, pig iron
and metallurgical coke and generation of power for
captive use. Pursuant to Honourable Supreme Court
of India order, mining operations in the state of Goa are
currently suspended. The Group’s iron ore business
includes Western Cluster Limited (“WCL”) in Liberia
which has iron ore assets and is wholly-owned by the
Group. WCL’s assets include development rights to
Western Cluster and a network of iron ore deposits in
West Africa. WCL’s assets have been fully impaired.
The Group’s copper business is owned and operated
by the Company, Copper Mines of Tasmania Pty Ltd.
(“CMT”) and Fujairah Gold FZC and is principally one of
custom smelting and includes captive power plants at
Tuticorin in Southern India.
The Group’s copper business in Tamil Nadu, India
has received an order from the Tamil Nadu Pollution
Control Board (“TNPCB”) on 09 April 2018, rejecting
the Company’s application for renewal of consent to
operate under the Air and Water Acts for the 400,000
tpa copper smelter plant in Tuticorin for want of further
clarification and consequently the operations were
suspended. The Company has filed an appeal with TNPCB
Appellate authority against the said order. During the
pendency of the appeal, TNPCB through its order dated
23 May 2018 ordered for disconnection of electricity
supply and closure of copper smelter plant. Post such
order, the state government on 28 May 2018 ordered the
permanent closure of the plant. We continue to engage
with the Government of India and relevant authorities to
enable the restart of operations at Copper India. [Refer
note 3(c)(A)(vii)].
Further, the Company’s copper business includes refinery
and rod plant Silvassa consisting of a 133,000 MT of
blister/secondary material processing plant, a 216,000
tpa copper refinery plant and a copper rod mill with an
installed capacity of 258,000 tpa. The plant continues to
operate as usual, catering to the domestic market.
< BACK TO CONTENTS
In addition, the Group owns and operates the Mt. Lyell
copper mine in Tasmania, Australia through its subsidiary,
CMT and a precious metal refinery and copper rod plant
in Fujairah, UAE through its subsidiary Fujairah Gold FZC.
The operations of Mt Lyell copper mine were suspended
in January 2014 following a mud slide incident and
were put into care and maintenance since 09 July 2014
following a rock fall incident in June 2014.
The Group’s Aluminium business is owned and
operated by the Company and by Bharat Aluminium
Company Limited (“BALCO”). The aluminium
operations include a refinery and captive power
plant at Lanjigarh and a smelter and captive power
plants at Jharsuguda both situated in the State of
Odisha in Eastern India. BALCO’s partially integrated
aluminium operations are comprised of two bauxite
mines, captive power plants, smelting and fabrication
facilities in the State of Chhattisgarh in central India.
The Group’s power business is owned and operated
by the Company, BALCO, and Talwandi Sabo Power
Limited (“TSPL”), a wholly-owned subsidiary of the
Company, which are engaged in the power generation
business in India. The Company’s power operations
include a thermal coal- based commercial power
facility of 600 MW at Jharsuguda in the State of Odisha
in Eastern India. BALCO power operations included
600 MW (2 units of 300 MW each) thermal coal based
power plant at Korba, of which a unit of 300 MW was
converted to be used for captive consumption vide
order from Central Electricity Regulatory Commission
(CERC) dated 01 January 2019. Talwandi Sabo Power
Limited (“TSPL”) power operations include 1,980 MW
(three units of 660 MW each) thermal coal- based
commercial power facilities. Power business also
includes the wind power plants commissioned by HZL
and a power plant at MALCO Energy Limited (“MEL”)
(under care and maintenance) situated at Mettur Dam
in the State of Tamil Nadu in southern India.
The Group’s other activities include ESL Steel Limited
(“ESL”) (formerly known as Electrosteel Steels
Limited). ESL is engaged in the manufacturing and
supply of billets, TMT bars, wire rods and ductile iron
pipes in India.
The Group’s other activities also include Vizag General
Cargo Berth Private Limited (“VGCB”) and Maritime
Ventures Private Limited (“MVPL”). Vizag port project
includes mechanisation of coal handling facilities and
upgradation of general cargo berth for handling coal
at the outer harbour of Visakhapatnam Port on the
east coast of India. MVPL is engaged in the business of
rendering logistics and other allied services inter alia
rendering stevedoring, and other allied services in ports
and other allied sectors. VGCB commenced operations
in the fourth quarter of fiscal 2013. The Group’s other
activities also include AvanStrate Inc. (“ASI”) and Ferro
Alloys Corporation Limited (“FACOR”). ASI is involved in
the manufacturing of glass substrate in South Korea and
Taiwan. FACOR is involved in business of producing Ferro
Alloys and owns a Ferro Chrome plant with capacity of
72,000 TPA, two operational Chrome mines and 100 MW
of Captive Power Plant through its subsidiary, FACOR
Power Limited (FPL).
Delisting of Vedanta Limited
The Company vide letter dated 12 May 2020 had informed
the stock exchanges that it has received a letter dated 12
May 2020 from its Holding Company, Vedanta Resources
Ltd. (“VRL”), wherein VRL had expressed its intention to,
either individually or along with one or more subsidiaries,
acquire all fully paid-up equity shares of the Company
(“Equity Shares”) that are held by the public shareholders
of the Company (as defined under the Delisting
Regulations, to be referred to as “Public Shareholders”)
and consequently voluntarily delist the Equity Shares
from BSE Limited and National Stock Exchange of India
Limited, the recognised stock exchanges where the
Equity Shares are presently listed (“Stock Exchanges”),
in accordance with the Delisting Regulations (“Delisting
Proposal”) and if such delisting is successful, then to also
delist the Company’s American Depositary Shares from
the New York Stock Exchange (“NYSE”) and deregister
the Company from the Securities and Exchange
Commission (“SEC”), subject to the requirements of the
NYSE and the SEC.
After obtaining due approvals, the Public Shareholders
holding Equity Shares were invited to submit Bids
pursuant to the reverse book building process conducted
through the Stock Exchange Mechanism made available
by BSE during the bid period (29 October 2020 to
09 October 2020), in accordance with the Delisting
Regulations.
The total number of Offer Shares validly tendered
by the Public Shareholders in the Delisting Offer was
1,25,47,16,610 Offer Shares, which was less than the
minimum number of Offer Shares required to be accepted
by the Acquirers in order for the Delisting Offer to be
successful in terms of Regulation 17(1)(a) of the Delisting
Regulations. Thus, the Delisting Offer is deemed to
have failed in terms of Regulation 19(1) of the Delisting
Regulations.
2
BASIS OF PREPARATION AND BASIS OF
MEASUREMENT OF FINANCIAL STATEMENTS
These consolidated financial statements have been
(A) Basis of preparation
i)
prepared in accordance with Indian Accounting Standards
(Ind AS) notified under the Companies (Indian Accounting
388
389
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements Standards) Rules, 2015 and other relevant provisions of
the Companies Act, 2013 (the “Act”) (as amended from
time to time) and Guidance Note on Accounting for Oil
and Gas Producing Activities issued by the Institute of
Chartered Accountants of India.
These consolidated financial statements have been
prepared in accordance with the accounting policies, set
out below and were consistently applied to all periods
presented unless otherwise stated.
These financial statements are approved for issue by the
Board of Directors on 13 May 2021.
All financial information presented in Indian Rupees has
been rounded off to the nearest crores except when
indicated otherwise. Amounts less than `0.50 crores have
been presented as “0”.
ii) Certain comparative figures appearing in these
consolidated financial statements have been regrouped
and/or reclassified to better reflect the nature of those
items (Refer note 2(C) below).
(B) Basis of measurement
The consolidated financial statements have been
prepared on a going concern basis using historical cost
convention and on an accrual method of accounting,
except for certain financial assets and liabilities which
are measured at fair value as explained in the accounting
policies below.
(C) Reclassifications
On an ongoing basis, the management reviews the
changes in the nature of the Group’s operations,
selection and application of accounting policies
and recent accounting pronouncements to assess
appropriateness of presentation or classifications of
items in the financial statements. For the year ended 31
March 2021, the Group has revised the presentation of
the following items, neither of which has any material
impact, individually or in the aggregate, on the financial
statements:
Fly ash disposal expenses amounting to `214
i)
crores (Year ended 31 March 2021: `406 crores) has been
reclassified from ‘Other Expenses’ to ‘Power and Fuel
expense’ for the comparative year ended 31 March 2020.
The Group from the current year has decided to
ii)
present liabilities with respect to operational buyer’s/
suppliers credit and vendor financing (Refer note
20(B)) on the face of the balance sheet, which were
previously included under trade payables to enhance the
understanding of the financial statements. The value of
such liabilities as at 01 April 2019 and 01 April 2020 was
`8,116 crores and `8,945 crores respectively (As at 31
March 2021: `7,983 crores).
iii) The constituents of cash and cash equivalents for
the purpose of cash flow statement to not consider the
earmarked unpaid dividend accounts hitherto included
in other bank balance. Consequently, such accounts
amounting to `96 crores and `94 crores as at 31 March
2019 and 31 March 2020 respectively have been excluded
from opening and closing cash and cash equivalents in the
statement of cash flows for the comparative year ended
31 March 2020.
3(a) SIGNIFICANT ACCOUNTING POLICIES
(A) Basis of Consolidation
i)
Subsidiaries:
The consolidated financial statements incorporate
the results of the Company and all its subsidiaries (the
“Group”), being the entities that it controls. Control is
evidenced where the Group has power over the investee,
is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect
those returns through its power over the investee. Power
is demonstrated through existing rights that give the
ability to direct relevant activities, which significantly
affect the entity’s returns.
The financial statements of subsidiaries are prepared
for the same reporting year as the parent company.
Where necessary, adjustments are made to the financial
statements of subsidiaries to align the accounting
policies in line with accounting policies of the Group.
For non-wholly-owned subsidiaries, a share of the
profit/(loss) for the financial year and net assets is
attributed to the non-controlling interests as shown
in the consolidated statement of profit and loss and
consolidated balance sheet.
Liability for put option issued to non-controlling interests
which do not grant present access to ownership interest
to the Group is recognised at present value of the
redemption amount and is reclassified from equity. At
the end of each reporting period, the non-controlling
interests subject to put option is derecognised and
the difference between the amount derecognised
and present value of the redemption amount, which is
recorded as a financial liability, is accounted for as an
equity transaction.
For acquisitions of additional interests in subsidiaries,
where there is no change in control, the Group recognises
a reduction to the non-controlling interest of the
respective subsidiary with the difference between this
figure and the cash paid, inclusive of transaction fees,
being recognised in equity. Similarly, upon dilution of
controlling interests the difference between the cash
received from sale or listing of the subsidiary shares and
< BACK TO CONTENTS
the increase to non-controlling interest is also recognised
in equity. The results of subsidiaries acquired or disposed
off during the year are included in the consolidated
statement of profit and loss from the effective date of
acquisition or up to the effective date of disposal,
as appropriate.
Intra-Group balances and transactions, and any
unrealised profit arising from intra-Group transactions,
are eliminated. Unrealised losses are eliminated unless
costs cannot be recovered.
Joint arrangements
ii)
A Joint arrangement is an arrangement of which two
or more parties have joint control. Joint control is
considered when there is contractually agreed sharing
of control of an arrangement, which exists only when
decisions about the relevant activities require the
unanimous consent of the parties sharing control.
Investments in joint arrangements are classified as
either joint operations or joint venture. The classification
depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint
arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations for
the liabilities, relating to the arrangement. A joint venture
is a joint arrangement whereby, the parties that have joint
control of the arrangement have rights to the net assets
of the arrangement.
The Group has both joint operations and joint ventures.
Joint operations
The Group has joint operations within its Oil and gas
segment. It participates in several unincorporated joint
operations which involve the joint control of assets used
in oil and gas exploration and producing activities. The
Group accounts for its share of assets, liabilities, income
and expenditure of joint operations in which the Group
holds an interest. Liabilities in unincorporated joint
operations, where the Group is the operator, is accounted
for at gross values (including share of other partners) with
a corresponding receivable from the venture partner.
These have been included in the consolidated financial
statements under the appropriate headings.
Details of joint operations are set out in Note 42.
Joint venture
The Group accounts for its interest in joint venture
using the equity method (see (iv) below), after initially
being recognised at cost in the consolidated balance
sheet. Goodwill arising on the acquisition of joint venture
is included in the carrying value of investments in joint
venture.
Investments in associates
iii)
An associate is an entity over which the Group has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions
of the investee, but is not control or joint control over
those policies. Investments in associates are accounted
for using the equity method (see (iv) below). Goodwill
arising on the acquisition of associate is included in the
carrying value of investments in associate.
iv) Equity method of accounting
Under the equity method of accounting applicable
for investments in associates and joint ventures,
investments are initially recorded at the cost to the
Group and then, in subsequent periods, the carrying
value is adjusted to reflect the Group’s share of the
post-acquisition profits or losses of the investee, and
the Group’s share of other comprehensive income of the
investee, other changes to the investee’s net assets and
is further adjusted for impairment losses, if any. Dividend
received or receivable from associates and joint-ventures
are recognised as a reduction in carrying amount of the
investment.
The consolidated statement of profit and loss include
the Group’s share of investee’s results, except where
the investee is generating losses, share of such losses
in excess of the Group’s interest in that investee are not
recognised. Losses recognised under the equity method
in excess of the Group’s investment in ordinary shares
are applied to the other components of the Group’s
interest that forms part of Group’s net investment in the
investee in the reverse order of their seniority (i.e. priority
in liquidation).
If the Group’s share of losses in an associate or joint
venture equals or exceeds its interests in the associate
or joint venture, the Group discontinues the recognition
of further losses. Additional losses are provided for,
only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of
the associate/joint venture.
Unrealised gains arising from transactions with
associates and joint ventures are eliminated against the
investment to the extent of the Group’s interest in these
entities. Unrealised losses are eliminated in the same
way as unrealised gains, but only to the extent that there
is no evidence of impairment of the asset transferred.
Accounting policies of equity accounted investees is
changed where necessary to ensure consistency with the
policies adopted by the Group.
The carrying amount of equity accounted investments
are tested for impairment in accordance with the policy
described in Note below 3(a)(H).
390
391
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements (B) Business combination
Business combinations are accounted for under the
purchase method. The acquiree’s identifiable assets,
liabilities and contingent liabilities that meet the
conditions for recognition under Ind AS 103 ‘Business
Combinations’ are recognised at their fair value at the
acquisition date, except certain assets and liabilities
required to be measured as per the applicable standards.
Excess of fair value of purchase consideration and
the acquisition date non-controlling interest over the
acquisition date fair value of identifiable assets acquired
and liabilities assumed is recognised as goodwill. Goodwill
arising on acquisitions is reviewed for impairment
annually. Where the fair values of the identifiable assets
and liabilities exceed the purchase consideration, the
Group re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities assumed
and reviews the procedures used to measure the
amounts to be recognised at the acquisition date. If the
reassessment still results in an excess of the fair value
of net assets acquired over the aggregate consideration
transferred, then the gain is recognised in other
comprehensive income and accumulated in equity as
capital reserve. However, if there is no clear evidence of
bargain purchase, the Group recognises the gain directly
in equity as capital reserve, without routing the same
through other comprehensive income.
Where it is not possible to complete the determination of
fair values by the date on which the first post-acquisition
financial statements are approved, a provisional
assessment of fair value is made and any adjustments
required to those provisional fair values are finalised
within 12 months of the acquisition date.
Those provisional amounts are adjusted through goodwill
during the measurement period, or additional assets
or liabilities are recognised, to reflect new information
obtained about facts and circumstances that existed at
the acquisition date that, if known, would have affected
the amounts recognised at that date. These adjustments
are called as measurement period adjustments. The
measurement period does not exceed twelve months
from the acquisition date.
Any non-controlling interest in an acquiree is measured
at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net identifiable
assets. This accounting choice is made on a transaction
by transaction basis.
Acquisition expenses are charged to the consolidated
statement of profit and loss.
If the Group acquires a group of assets in a company that
does not constitute a business combination in accordance
with Ind AS 103 ‘Business Combinations’, the cost of the
acquired group of assets is allocated to the individual
identifiable assets acquired based on their relative fair
value.
Common control transactions
A business combination involving entities or businesses
under common control is a business combination in which
all of the combining entities or businesses are ultimately
controlled by the same party or parties both before and
after the business combination and the control is not
transitory. The transactions between entities under
common control are specifically covered by Ind AS 103.
Such transactions are accounted for using the pooling-
of-interest method. The assets and liabilities of the
acquired entity are recognised at their carrying amounts
recorded in the parent entity’s consolidated financial
statements with the exception of certain income tax and
deferred tax assets. No adjustments are made to reflect
fair values, or recognise any new assets or liabilities. The
only adjustments that are made are to harmonise
accounting policies.
The components of equity of the acquired companies
are added to the same components within Group equity.
The difference, if any, between the amounts recorded
as share capital issued plus any additional consideration
in the form of cash or other assets and the amount of
share capital of the transferor is transferred to capital
reserve and is presented separately from other capital
reserves. The Company’s shares issued in consideration
for the acquired companies are recognised at face value
from the moment the acquired companies are included in
these financial statements and the financial statements
of the commonly controlled entities would be combined,
retrospectively, as if the transaction had occurred at the
beginning of the earliest reporting period presented.
However, the prior year comparative information is only
adjusted for periods during which entities were under
common control.
(C) Revenue recognition
Sale of goods/rendering of services (Including
Revenue from contracts with customers)
The Group’s revenue from contracts with customers
is mainly from the sale of copper, aluminium, iron ore,
zinc, oil and gas, power, steel, glass substrate and port
operations. Revenue from contracts with customers
is recognised when control of the goods or services is
transferred to the customer which usually is on delivery
of the goods to the shipping agent at an amount that
reflects the consideration to which the Group expects
to be entitled in exchange for those goods or services.
Revenue is recognised net of discounts, volume rebates,
outgoing sales taxes/goods and service tax and other
indirect taxes. Revenues from sale of by-products are
included in revenue.
< BACK TO CONTENTS
Certain of the Group’s sales contracts provide for
provisional pricing based on the price on the London
Metal Exchange (LME) and crude index, as specified
in the contract. Revenue in respect of such contracts
is recognised when control passes to the customer
and is measured at the amount the entity expects to
be entitled – being the estimate of the price expected
to be received at the end of the measurement period.
Post transfer of control of goods, provisional pricing
features are accounted in accordance with Ind AS 109
‘Financial Instruments’ rather than Ind AS 115 ‘Revenue
from contracts with customers’ and therefore the Ind AS
115 rules on variable consideration do not apply. These
‘provisional pricing’ adjustments i.e. the consideration
adjusted post transfer of control are included in total
revenue from operations on the face of the consolidated
statement of profit and loss and disclosed by way of
note to the financial statements. Final settlement of
the price is based on the applicable price for a specified
future period. The Group’s provisionally priced sales are
marked to market using the relevant forward prices for
the future period specified in the contract and is adjusted
in revenue.
Revenue from oil, gas and condensate sales represent
the Group’s share in the revenue from sale of such
products, by the joint operations, and is recognised as
and when control in these products gets transferred to
the customers. In computing its share of revenue, the
Group excludes government’s share of profit oil which
gets accounted for when the obligation in respect of the
same arises.
Revenue from sale of power is recognised when delivered
and measured based on rates as per bilateral contractual
agreements with buyers and at a rate arrived at based
on the principles laid down under the relevant Tariff
Regulations as notified by the regulatory bodies,
as applicable.
Where the Group acts as a port operator, revenues
relating to operating and maintenance phase of the port
contract are measured at the amount that Group expects
to be entitled to for the services provided.
A contract asset is the right to consideration in exchange
for goods or services transferred to the customer. If the
Group performs part of its obligation by transferring
goods or services to a customer before the customer
pays consideration or before payment is due, a contract
asset is recognised for the earned consideration when
that right is conditional on the Group’s
future performance.
A contract liability is the obligation to transfer goods or
services to a customer for which the Group has received
consideration from the customer. If a customer pays
consideration before the Group transfers goods or
services to the customer, a contract liability is recognised
when the payment is received. The advance payments
received plus a specified rate of return/discount, at the
prevailing market rates, is settled by supplying respective
goods over a period of up to twenty four months under
an agreed delivery schedule as per the terms of the
respective agreements. As these are contracts that
the Group expects, and has the ability, to fulfil through
delivery of a non-financial item, these are presented as
advance from customers and are recognised as revenue
as and when control of respective commodities is
transferred to customers under the agreements. The
fixed rate of return/discount is treated as finance cost.
The portion of the advance where either the Group does
not have a unilateral right to defer settlement beyond
12 months or expects settlement within 12 months from
the balance sheet date is classified as current liability.
• Interest income
Interest income from debt instruments is recognised
using the effective interest rate method. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset to the gross carrying amount of a financial
asset. When calculating the effective interest rate, the
Group estimates the expected cash flows by considering
all the contractual terms of the financial instrument (for
example, prepayment, extension, call and similar options)
but does not consider the expected credit losses.
• Dividends
Dividend income is recognised in the consolidated
statement of profit and loss only when the right to receive
payment is established, provided it is probable that the
economic benefits associated with the dividend will flow
to the Group, and the amount of the dividend can be
measured reliably.
(D) Property, Plant and Equipment
i) Mining properties and leases
When a decision is taken that a mining property is
viable for commercial production (i.e. when the Group
determines that the mining property will provide
sufficient and sustainable return relative to the risks
and the Group decided to proceed with the mine
development), all further pre-production primary
development expenditure other than that on land,
buildings, plant, equipment and capital work-in-progress
is capitalised as property, plant and equipment under the
heading “Mining properties and leases” together with any
amount transferred from “Exploration and evaluation”
assets. The costs of mining properties and leases include
the costs of acquiring and developing mining properties
and mineral rights.
392
393
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements The stripping cost incurred during the production phase
of a surface mine is deferred to the extent the current
period stripping cost exceeds the average period
stripping cost over the life of mine and recognised as an
asset if such cost provides a benefit in terms of improved
access to ore in future periods and certain criteria are
met. When the benefit from the stripping costs are
realised in the current period, the stripping costs are
accounted for as the cost of inventory. If the costs of
inventory produced and the stripping activity asset
are not separately identifiable, a relevant production
measure is used to allocate the production stripping
costs between the inventory produced and the stripping
activity asset. The Group uses the expected volume
of waste compared with the actual volume of waste
extracted for a given value of ore/mineral production
for the purpose of determining the cost of the stripping
activity asset.
Deferred stripping costs are included in mining properties
within property, plant and equipment and disclosed as
a part of mining properties. After initial recognition,
the stripping activity asset is depreciated on a unit of
production method over the expected useful life of the
identified component of the ore body.
In circumstances where a mining property is abandoned,
the cumulative capitalised costs relating to the property
are written off in the period in which it occurs i.e. when
the Group determines that the mining property will not
provide sufficient and sustainable returns relative to the
risks and the Group decides not to proceed with the mine
development.
Commercial reserves are proved and probable reserves
as defined by the ‘JORC’ Code, ‘MORC’ code or ‘SAMREC’
Code. Changes in the commercial reserves affecting unit
of production calculations are dealt with prospectively
over the revised remaining reserves.
ii) Oil and gas assets – (developing/producing assets)
For oil and gas assets, a “successful efforts” based
accounting policy is followed. Costs incurred prior to
obtaining the legal rights to explore an area are expensed
immediately to the consolidated statement of profit and
loss.
All costs incurred after the technical feasibility and
commercial viability of producing hydrocarbons has been
demonstrated are capitalised within property, plant and
equipment – development/producing assets on a field-
by-field basis. Subsequent expenditure is capitalised only
where it either enhances the economic benefits of the
development/ producing asset or replaces part of the
existing development/ producing asset. Any remaining
costs associated with the part replaced are expensed.
Net proceeds from any disposal of development/
producing assets are credited against the previously
capitalised cost. A gain or loss on disposal of a
development/producing asset is recognised in the
consolidated statement of profit and loss to the extent
that the net proceeds exceed or are less than the
appropriate portion of the net capitalised costs of
the asset.
iii) Other property, plant and equipment
The initial cost of property, plant and equipment
comprises its purchase price, including import duties
and non-refundable purchase taxes, and any directly
attributable costs of bringing an asset to working
condition and location for its intended use. It also
includes the initial estimate of the costs of dismantling
and removing the item and restoring the site on which it
is located.
Land acquired free of cost or at below market rate
from the government is recognised at fair value with
corresponding credit to deferred income.
If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components)
of property, plant and equipment. All other expenses
on existing property, plant and equipment, including
day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the consolidated
statement of profit and loss for the period during which
such expenses are incurred.
Gains and losses on disposal of an item of property, plant
and equipment computed as the difference between the
net disposal proceeds and the carrying amount of the
asset is included in the consolidated statement of profit
and loss when the asset is derecognised. Major inspection
and overhaul expenditure is capitalised, if the recognition
criteria are met.
iv) Assets under construction
Assets under construction are capitalised in the assets
under construction account. At the point when an
asset is capable of operating in the manner intended by
management, the cost of construction is transferred
to the appropriate category of property, plant and
equipment. Costs associated with the commissioning of
an asset and any obligatory decommissioning costs are
capitalised until the period of commissioning has been
completed and the asset is ready for its intended use.
v) Depreciation, depletion and amortisation expense
Mining properties and other assets in the course of
development or construction and freehold land and
goodwill are not depreciated or amortised.
< BACK TO CONTENTS
• Mining properties
The capitalised mining properties are amortised on
a unit-of-production basis over the total estimated
remaining commercial proved and probable reserves of
each property or group of properties and are subject to
impairment review. Costs used in the unit of production
calculation comprise the net book value of capitalised
costs plus the estimated future capital expenditure
required to access the commercial reserves. Changes in
the estimates of commercial reserves or future capital
expenditure are dealt with prospectively.
• Oil and gas producing facilities
All expenditures carried within each field are amortised
from the commencement of production on a unit
of production basis, which is the ratio of oil and gas
production in the period to the estimated quantities of
depletable reserves at the end of the period plus the
production in the period, generally on a field-by-field
basis or group of fields which are reliant on common
infrastructure.
Depletable reserves are proved reserves for acquisition
costs and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. These
assets are depleted within each cost centre. Reserves
for this purpose are considered on working interest basis
which are reassessed atleast annually. Impact of changes
to reserves are accounted for prospectively.
• Other assets
Depreciation on other Property, plant and equipment
is calculated using the straight-line method (SLM) to
allocate their cost, net of their residual values, over their
estimated useful lives (determined by the management)
as given below.
Management’s assessment takes into account, inter
alia, the nature of the assets, the estimated usage of
the assets, the operating conditions of the assets, past
history of replacement and maintenance support.
Estimated useful life of assets are as follows:
Asset
Useful life (in years)
Buildings (Residential; factory etc.)
Plant and equipment
Railway siding
Office equipment
Furniture and fixture
Vehicles
3-60
15-40
15
3-6
8-10
8-10
Major inspection and overhaul costs are depreciated over
the estimated life of the economic benefit to be derived
from such costs. The carrying amount of the remaining
previous overhaul cost is charged to the consolidated
statement of profit and loss if the next overhaul is
undertaken earlier than the previously estimated life of
the economic benefit.
The Group reviews the residual value and useful life
of an asset at least at each financial year-end and, if
expectations differ from previous estimates, the change
is accounted for as a change in accounting estimate.
Intangible assets
(E)
Intangible assets acquired separately are measured on
initial recognition at cost. Subsequently, intangible assets
are measured at cost less accumulated amortisation and
accumulated impairment losses, if any.
The Group recognises port concession rights as
“Intangible Assets” arising from a service concession
arrangements, in which the grantor controls or regulates
the services provided and the prices charged, and
also controls any significant residual interest in the
infrastructure such as property, plant and equipment,
irrespective whether the infrastructure is existing
infrastructure of the grantor or the infrastructure is
constructed or purchased by the Group as part of the
service concession arrangement. Such an intangible
asset is recognised by the Group initially at cost
determined as the fair value of the consideration received
or receivable for the construction service delivered and
is capitalised when the project is complete in all respects.
Port concession rights are amortised on straight line
basis over the balance of license period. The concession
period is 30 years from the date of the award. Any addition
to the port concession rights are measured at fair value
on recognition. Port concession rights also include
certain property, plant and equipment in accordance
with Appendix C of Ind AS 115 “service concession
arrangements.”
Intangible assets are amortised over their estimated
useful life on a straight line basis. Software is amortised
over the estimated useful life ranging from 2-5 years.
Amounts paid for securing mining rights are amortised
over the period of the mining lease ranging from 16-25
years. Technological know-how and acquired brand are
amortised over the estimated useful life of ten years.
Gains or losses arising from derecognition of an intangible
asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset
and are recognised in the consolidated statement of
profit and loss when the asset is derecognised.
The amortisation period and the amortisation method
are reviewed at least at each financial year end. If the
expected useful life of the asset is different from previous
estimates, the change is accounted for prospectively as a
change in accounting estimate.
394
395
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements (F) Exploration and evaluation intangible assets
Exploration and evaluation expenditure incurred prior to
obtaining the mining right or the legal right to explore are
expensed as incurred.
drilling indicate the presence of hydrocarbons which are
ultimately not considered commercially viable, all related
costs are written off to the consolidated statement of
profit and loss.
Exploration and evaluation expenditure incurred after
obtaining the mining right or the legal right to explore
are capitalised as exploration and evaluation assets
(intangible assets) and stated at cost less impairment,
if any. Exploration and evaluation intangible assets are
transferred to the appropriate category of property,
plant and equipment when the technical feasibility and
commercial viability has been determined. Exploration
intangible assets under development are assessed for
impairment and impairment loss, if any, is recognised
prior to reclassification.
Exploration expenditure includes all direct and allocated
indirect expenditure associated with finding specific
mineral resources which includes depreciation and
applicable operating costs of related support equipment
and facilities and other costs of exploration activities:
Acquisition costs – costs associated with acquisition
of licenses and rights to explore, including related
professional fees.
General exploration costs – costs of surveys and
studies, rights of access to properties to conduct
those studies (e.g. costs incurred for environment
clearance, defence clearance, etc.), and salaries and
other expenses of geologists, geophysical crews and
other personnel conducting those studies.
Costs of exploration drilling and equipping exploration
and appraisal wells.
Exploration expenditure incurred in the process of
determining oil and gas exploration targets is capitalised
within “Exploration and evaluation assets” (intangible
assets) and subsequently allocated to drilling activities.
Exploration drilling costs are initially capitalised on a
well-by-well basis until the success or otherwise of the
well has been established. The success or failure of
each exploration effort is judged on a well-by-well basis.
Drilling costs are written off on completion of a well unless
the results indicate that hydrocarbon reserves exist and
there is a reasonable prospect that these reserves are
commercial.
Following appraisal of successful exploration wells,
if commercial reserves are established and technical
feasibility for extraction demonstrated, then the related
capitalised exploration costs are transferred into a single
field cost centre within property, plant and equipment -
development/producing assets (oil and gas properties)
after testing for impairment. Where results of exploration
Expenditure incurred on the acquisition of a license
interest is initially capitalised on a license-by-license
basis. Costs are held, undepleted, within exploration and
evaluation assets until such time as the exploration phase
on the license area is complete or commercial reserves
have been discovered.
Net proceeds from any disposal of an exploration
asset are initially credited against the previously
capitalised costs. Any surplus/deficit is recognised in the
consolidated statement of profit and loss.
(G) Non-current assets held for sale
Non-current assets and disposal groups are classified
as held for sale if their carrying amount will be recovered
through a sale transaction rather than through continuing
use. This condition is regarded as met only when the
sale is highly probable and the asset (or disposal group)
is available for immediate sale in its present condition.
Management must be committed to the sale which should
be expected to qualify for recognition as a completed sale
within one year from the date of classification.
Non-current assets and disposal groups classified as
held for sale are not depreciated and are measured at the
lower of carrying amount and fair value less costs to sell.
Such assets and disposal groups are presented separately
on the face of the consolidated balance sheet.
Impairment of non-financial assets
(H)
Impairment charges and reversals are assessed at the
level of cash-generating units. A cash-generating unit
(CGU) is the smallest identifiable group of assets that
generate cash inflows that are largely independent of the
cash inflows from other assets or group of assets.
The Group assesses at each reporting date, whether
there is an indication that an asset may be impaired.
The Group conducts an internal review of asset values
annually, which is used as a source of information to
assess for any indications of impairment or reversal of
previously recognised impairment losses. Internal and
external factors, such as worse economic performance
than expected, changes in expected future prices, costs
and other market factors are also monitored to assess
for indications of impairment or reversal of previously
recognised impairment losses.
If any such indication exists or in case of goodwill
where annual testing of impairment is required, then an
impairment review is undertaken and the recoverable
396
< BACK TO CONTENTS
amount is calculated, as the higher of fair value less costs
of disposal and the asset’s value in use.
will expire in the near future, and is not expected to be
renewed;
Fair value less costs of disposal is the price that would
be received to sell the asset in an orderly transaction
between market participants and does not reflect the
effects of factors that may be specific to the Group
and not applicable to entities in general. Fair value for
mineral and oil and gas assets is generally determined
as the present value of the estimated future cash flows
expected to arise from the continued use of the asset,
including any expansion prospects, and its eventual
disposal, using assumptions that an independent market
participant may take into account. These cash flows are
discounted at an appropriate post tax discount rate to
arrive at the net present value.
Value in use is determined as the present value of the
estimated future cash flows expected to arise from the
continued use of the asset in its present form and its
eventual disposal. The cash flows are discounted using
a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks
specific to the asset for which estimates of future cash
flows have not been adjusted. Value in use is determined
by applying assumptions specific to the Group’s
continued use and cannot take into account future
development. These assumptions are different to those
used in calculating fair value and consequently the value
in use calculation is likely to give a different result to a fair
value calculation.
The carrying amount of the CGU is determined on a basis
consistent with the way the recoverable amount of the
CGU is determined. The carrying value is net of deferred
tax liability recognised in the fair value of assets acquired
in the business combination.
If the recoverable amount of an asset or CGU is estimated
to be less than its carrying amount, the carrying amount
of the asset or CGU is reduced to its recoverable amount.
An impairment loss is recognised in the consolidated
statement of profit and loss.
Any reversal of the previously recognised impairment loss
is limited to the extent that the asset’s carrying amount
does not exceed the carrying amount that would have
been determined if no impairment loss had previously
been recognised except if initially attributed to goodwill.
Exploration and evaluation intangible assets:
In assessing whether there is any indication that an
exploration and evaluation asset may be impaired, the
Group considers, as a minimum, the following indicators:
the period for which the Group has the right to explore
in the specific area has expired during the period or
substantive expenditure on further exploration for and
evaluation of mineral resources in the specific area is
neither budgeted nor planned;
exploration for and evaluation of mineral resources
in the specific area have not led to the discovery of
commercially viable quantities of mineral resources
and the Group has decided to discontinue such
activities in the specific area;
sufficient data exist to indicate that, although a
development in the specific area is likely to proceed,
the carrying amount of the exploration and evaluation
asset is unlikely to be recovered in full from successful
development or by sale; and
reserve information prepared annually by external
experts.
When a potential impairment is identified, an assessment
is performed for each area of interest in conjunction
with the group of operating assets (representing a
cash-generating unit) to which the exploration and
evaluation assets is attributed. Exploration areas in
which reserves have been discovered but require major
capital expenditure before production can begin,
are continually evaluated to ensure that commercial
quantities of reserves exist or to ensure that additional
exploration work is underway or planned. To the extent
that capitalised expenditure is no longer expected to be
recovered, it is charged to the consolidated statement of
profit and loss.
(I) Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
(i)
Financial Assets – recognition & subsequent
measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require delivery
of assets within a time frame established by regulation or
convention in the market place (regular way trades) are
recognised on the trade date, i.e. the date that the Group
commits to purchase or sell the asset.
For purposes of subsequent measurement, financial
assets are classified in four categories:
• Debt instruments at amortised cost
A ‘debt instrument’ is measured at amortised cost if both
the following conditions are met:
397
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements a)
b)
The asset is held within a business model whose
objective is to hold assets for collecting contractual
cash flows, and
Debt instruments included within the FVTPL category are
measured at fair value with all changes being recognised
in consolidated statement of profit and loss.
Contractual terms of the asset give rise on specified
dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount
outstanding.
After initial measurement, such financial assets are
subsequently measured at amortised cost using the
Effective Interest Rate (EIR) method. Amortised cost
is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included
in interest income in consolidated statement of profit and
loss. The losses arising from impairment are recognised in
consolidated statement of profit and loss.
• Debt instruments at fair value through other
comprehensive income (FVOCI)
A ‘debt instrument’ is classified as at FVOCI if both of the
following criteria are met:
a)
The objective of the business model is achieved both
by collecting contractual cash flows and selling the
financial assets, and
b) The asset’s contractual cash flows represent SPPI.
Debt instruments included within the FVOCI category
are measured initially as well as at each reporting date at
fair value. Fair value movements are recognised in other
comprehensive income (OCI). However, interest income,
impairment losses and reversals and foreign exchange
gain or loss are recognised in the consolidated statement
of profit and loss. On derecognition of the asset,
cumulative gain or loss previously recognised in other
comprehensive income is reclassified from the equity to
consolidated statement of profit and loss. Interest earned
whilst holding fair value through other comprehensive
income debt instrument is reported as interest income
using the EIR method.
• Debt instruments at fair value through profit or loss
(FVTPL)
FVTPL is a residual category for debt instruments. Any
debt instrument, which does not meet the criteria for
categorisation as at amortised cost or as FVOCI, is
classified as at FVTPL.
• Equity instruments
All equity investments in the scope of Ind AS 109 are
measured at fair value. Equity instruments which are held
for trading and contingent consideration recognised by
an acquirer in a business combination to which Ind AS
103 applies are classified as at FVTPL. For all other equity
instruments, the Group may make an irrevocable election
to present in other comprehensive income subsequent
changes in the fair value. The Group makes such election
on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
If the Group decides to classify an equity instrument as
at FVOCI, then all fair value changes on the instrument,
excluding dividends, are recognised in the OCI. There
is no recycling of the amounts from OCI to profit and
loss, even on sale of investment. However, the Group
may transfer the cumulative gain or loss within equity.
For equity instruments which are classified as FVTPL,
all subsequent fair value changes are recognised in the
consolidated statement of profit and loss.
(ii) Financial Assets – derecognition
The Group derecognises a financial asset when the
contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash
flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the
financial asset are transferred.
Impairment of financial assets
(iii)
In accordance with Ind AS 109, the Group applies
expected credit loss (“ECL”) model for measurement and
recognition of impairment loss on the following financial
assets:
a)
b)
c)
Financial assets that are debt instruments, and
are measured at amortised cost e.g. loans, debt
securities and deposits
Financial assets that are debt instruments and are
measured as at FVOCI
Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.
In addition, the Group may elect to designate a debt
instrument, which otherwise meets amortised cost or
FVOCI criteria, as at FVTPL. However, such election
is allowed only if doing so reduces or eliminates a
measurement or recognition inconsistency (referred to
as ‘accounting mismatch’). The Group has not designated
any debt instrument as at FVTPL.
The Group follows ‘simplified approach’ for recognition of
impairment loss allowance on trade receivables, contract
assets and lease receivables. The application of simplified
approach does not require the Group to track changes
in credit risk. Rather, it recognises impairment loss
allowance based on lifetime ECLs at each reporting date,
right from its initial recognition.
398
< BACK TO CONTENTS
At each reporting date, for recognition of impairment
loss on other financial assets and risk exposure, the
Group determines whether there has been a significant
increase in the credit risk since initial recognition. If credit
risk has not increased significantly, 12-month ECL is
used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If,
in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then the
Group reverts to recognising impairment loss allowance
based on 12-month ECL.
Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected life of a
financial instrument. The 12-month ECL is a portion of the
lifetime ECL which results from default events that are
possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows
that are due to the Group in accordance with the contract
and all the cash flows that the entity expects to receive,
discounted at the original EIR.
ECL impairment loss allowance (or reversal) during the
year is recognised as income/expense in consolidated
statement of profit and loss. The balance sheet
presentation for various financial instruments is
described below:
a)
b)
Financial assets measured at amortised cost: ECL is
presented as an allowance, i.e. as an integral part of
the measurement of those assets. The Group does
not reduce impairment allowance from the gross
carrying amount.
Debt instruments measured at FVOCI: Since
financial assets are already reflected at fair value,
impairment allowance is not further reduced from
its value. Rather, ECL amount is presented as
‘accumulated impairment amount’ in the OCI.
For assessing increase in credit risk and impairment loss,
the Group combines financial instruments on the basis
of shared credit risk characteristics with the objective
of facilitating an analysis that is designed to enable
significant increases in credit risk to be identified on a
timely basis.
The Group does not have any purchased or originated
credit-impaired (POCI) financial assets, i.e. financial
assets which are credit impaired on purchase/origination.
(iv) Financial liabilities – Recognition & Subsequent
measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
or as loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective hedge,
as appropriate.
All financial liabilities are recognised initially at fair value,
and in the case of financial liabilities at amortised cost, net
of directly attributable transaction costs.
The Group’s financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts,
financial guarantee contracts and derivative financial
instruments.
The measurement of financial liabilities depends on their
classification, as described below:
• Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered
into by the Group that are not designated as hedging
instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified
as held for trading unless they are designated as effective
hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the consolidated statement of profit
and loss.
Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria
in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/losses attributable to changes
in own credit risk are recognised in OCI. These gains/
losses are not subsequently transferred to consolidated
income statement. However, the Group may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the
consolidated statement of profit and loss. The Group
has not designated any financial liability as at fair value
through profit or loss.
• Financial liabilities at amortised cost (Loans and
Borrowings and Trade and Other payables)
After initial recognition, interest-bearing loans
and borrowings and trade and other payables are
subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in the
consolidated statement of profit and loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is
included as finance costs in the consolidated statement
of profit and loss.
399
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements (v) Financial liabilities – Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the
derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the consolidated statement of
profit and loss.
(vi) Embedded derivatives
An embedded derivative is a component of a hybrid
(combined) instrument that also includes a non-
derivative host contract – with the effect that some
of the cash flows of the combined instrument vary in a
way similar to a stand-alone derivative. An embedded
derivative causes some or all of the cash flows that
otherwise would be required by the contract to be
modified according to a specified interest rate, financial
instrument price, commodity price, foreign exchange
rate, index of prices or rates, credit rating or credit index,
or other variable, provided in the case of a non-financial
variable that the variable is not specific to a party to the
contract. Reassessment only occurs if there is either
a change in the terms of the contract that significantly
modifies the cash flows that would otherwise be required
or a reclassification of a financial asset out of the fair value
through profit or loss.
If the hybrid contract contains a host that is a financial
asset within the scope of Ind AS 109, the Group does
not separate embedded derivatives. Rather, it applies
the classification requirements contained in Ind AS 109
to the entire hybrid contract. Derivatives embedded in
all other host contracts are accounted for as separate
derivatives and recorded at fair value if their economic
characteristics and risks are not closely related to those
of the host contracts and the host contracts are not
held for trading or designated at fair value though profit
or loss. These embedded derivatives are measured
at fair value with changes in fair value recognised in
consolidated statement of profit and loss, unless
designated as effective hedging instruments.
(vii) Equity instruments
An equity instrument is any contract that evidences a
residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Group
are recognised at the proceeds received, net of direct
issue costs.
(viii) Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount is reported in the consolidated balance sheet
if there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on
a net basis or to realise the asset and settle the liability
simultaneously.
(J) Derivative financial instruments and hedge
accounting
Initial recognition and subsequent measurement
In order to hedge its exposure to foreign exchange,
interest rate, and commodity price risks, the Group
enters into forward, option, swap contracts and other
derivative financial instruments. The Group does not hold
derivative financial instruments for speculative purposes.
Such derivative financial instruments are initially
recognised at fair value on the date on which a derivative
contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to consolidated
statement of profit and loss, except for the effective
portion of cash flow hedges, which is recognised in
OCI and later reclassified to consolidated statement
of profit and loss when the hedge item affects profit or
loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a
non-financial asset or non-financial liability.
For the purpose of hedge accounting, hedges are
classified as:
Fair value hedges when hedging the exposure to
changes in the fair value of a recognised asset or
liability or an unrecognised firm commitment
Cash flow hedges when hedging the exposure to
variability in cash flows that is either attributable to
a particular risk associated with a recognised asset
or liability or a highly probable forecast transaction
or the foreign currency risk in an unrecognised firm
commitment
Hedges of a net investment in a foreign operation
At the inception of a hedge relationship, the Group
formally designates and documents the hedge
relationship to which the Group wishes to apply hedge
accounting. The documentation includes the Group’s
risk management objective and strategy for undertaking
hedge, the hedging/economic relationship, the hedged
< BACK TO CONTENTS
item or transaction, the nature of the risk being
hedged, hedge ratio and how the Group will assess the
effectiveness of changes in the hedging instrument’s fair
value in offsetting the exposure to changes in the hedged
item’s fair value or cash flows attributable to the hedged
risk. Such hedges are expected to be highly effective in
achieving offsetting changes in fair value or cash flows
and are assessed on an ongoing basis to determine that
they actually have been highly effective throughout
the financial reporting periods for which they were
designated.
Hedges that meet the strict criteria for hedge accounting
are accounted for, as described below:
Fair value hedges
(i)
Changes in the fair value of derivatives that are
designated and qualify as fair value hedges are recognised
in consolidated statement of profit and loss immediately,
together with any changes in the fair value of the hedged
asset or liability that are attributable to the hedged risk.
When an unrecognised firm commitment is designated
as a hedged item, the subsequent cumulative change
in the fair value of the firm commitment attributable to
the hedged risk is recognised as an asset or liability with
a corresponding gain or loss recognised in consolidated
statement of profit and loss. Hedge accounting is
discontinued when the group revokes the hedge
relationship, the hedging instrument or hedged item
expires or is sold, terminated, or exercised or no longer
meets the criteria for hedge accounting.
(ii) Cash flow hedges
The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge
reserve, while any ineffective portion is recognised
immediately in the consolidated statement of profit
and loss.
Amounts recognised in OCI are transferred to
consolidated statement of profit and loss when the
hedged transaction affects profit or loss, such as when
the hedged financial income or financial expense is
recognised or when a forecast sale occurs. When the
hedged item is the cost of a non-financial asset or
non-financial liability, the amounts recognised in OCI are
transferred to the initial carrying amount of the
non-financial asset or liability.
If the hedging instrument expires or is sold, terminated
or exercised without replacement or rollover (as part of
the hedging strategy), or if its designation as a hedge
is revoked, or when the hedge no longer meets the
criteria for hedge accounting, any cumulative gain or
loss previously recognised in OCI remains separately in
equity until the forecast transaction occurs or the foreign
currency firm commitment is met.
(iii) Hedges of a net investment
Hedges of a net investment in a foreign operation,
including a hedge of a monetary item that is accounted
for as part of the net investment, are accounted for in a
way similar to cash flow hedges. Gains or losses on the
hedging instrument relating to the effective portion of
the hedge are recognised in OCI while any gains or losses
relating to the ineffective portion are recognised in the
consolidated statement of profit and loss. On disposal
of the foreign operation, the cumulative value of any
such gains or losses recorded in equity is reclassified
to the consolidated statement of profit and loss (as a
reclassification adjustment).
(K) Leases
The Group assesses at contract inception, all
arrangements to determine whether they are, or contain,
a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time in
exchange for consideration.
(a) Group as a lessor
Leases in which the Group does not transfer substantially
all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income from
operating lease is recognised on a straight-line basis over
the term of the relevant lease. Initial direct costs incurred
in negotiating and arranging an operating lease are added
to the carrying amount of the leased asset and recognised
over the lease term on the same basis as rental income.
Contingent rents are recognised as revenue in the period
in which they are earned.
Leases are classified as finance leases when substantially
all of the risks and rewards of ownership transfer from the
Group to the lessee. Amounts due from lessees under
finance leases are recorded as receivables at the Group’s
net investment in the leases. Finance lease income is
allocated to accounting periods so as to reflect a constant
periodic rate of return on the net investment outstanding
in respect of the lease.
(b) Group as a lessee
The Group applies a single recognition and measurement
approach for all leases, except for short-term leases and
leases of low-value assets. The Group recognises lease
liabilities towards future lease payments and right-of-
use assets representing the right to use the underlying
assets.
Right-of-use assets
(i)
The Group recognises right-of-use assets at the
commencement date of the lease (i.e. the date when
the underlying asset is available for use). Right-of-use
assets are measured at cost, less any accumulated
depreciation and impairment losses, and adjusted
for any remeasurement of lease liabilities. The cost
400
401
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements of right-of-use assets includes the amount of lease
liabilities recognised, initial direct costs incurred, and
lease payments made at or before the commencement
date less any lease incentives received. The right-of-use
assets are also subject to impairment.
Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated
useful lives of the assets as described in ‘D’ above.
(ii) Lease liabilities
At the commencement date of the lease, the Group
recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The
lease payments include fixed payments (and, in some
instances, in-substance fixed payments) less any lease
incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group
and payments of penalties for terminating the lease, if
the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses (unless
they are incurred to produce inventories) in the period in
which the event or condition that triggers the payment
occurs.
In calculating the present value of lease payments,
the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is generally not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term, a
change in the lease payments (e.g. changes to future
payments resulting from a change in an index or rate
used to determine such lease payments) or a change in
the assessment of an option to purchase the underlying
asset.
The Group’s lease liabilities are included in Other Financial
Liabilities.
(iii) Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition
exemption to its short-term leases of equipment (i.e.
those leases that have a lease term of 12 months or
less from the commencement date and do not contain
a purchase option). It also applies the lease of low-
value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line basis
over the lease term.
Inventories
(L)
Inventories and work-in-progress are stated at the lower
of cost and net realisable value.
Cost is determined on the following basis:
Purchased copper concentrate is recorded at cost on a
first-in, first-out (“FIFO”) basis;
all other materials including stores and spares are
valued on weighted average basis except in Oil and
Gas business where stores and spares are valued on
FIFO basis.
Finished products are valued at raw material cost plus
costs of conversion, comprising labour costs and an
attributable proportion of manufacturing overheads
based on normal levels of activity and are moved out
of inventory on a weighted average basis (except in
copper business where FIFO basis is followed) and
By-products and scrap are valued at net realisable
value.
Net realisable value is determined based on estimated
selling price, less further costs expected to be incurred
for completion and disposal.
(M) Government grants
Grants and subsidies from the government are
recognised when there is reasonable assurance that (i)
the Group will comply with the conditions attached to
them, and (ii) the grant/subsidy will be received.
When the grant or subsidy relates to revenue, it is
recognised as income on a systematic basis in the
consolidated statement of profit and loss over the
periods necessary to match them with the related costs,
which they are intended to compensate.
Where the grant relates to an asset, it is recognised as
deferred income and released to income in equal amounts
over the expected useful life of the related asset and
presented within other income.
When the Group receives grants of non-monetary assets,
the asset and the grant are recorded at fair value amounts
and released to profit or loss over the expected useful
life in a pattern of consumption of the benefit of the
underlying asset.
When loans or similar assistance are provided by
governments or related institutions, with an interest
rate below the current applicable market rate, the effect
of this favourable interest is regarded as a government
grant. The loan or assistance is initially recognised and
measured at fair value and the government grant is
measured as the difference between the initial carrying
402
< BACK TO CONTENTS
value of the loan and the proceeds received. The loan
is subsequently measured as per the accounting policy
applicable to financial liabilities.
(N) Taxation
Tax expense represents the sum of current tax and
deferred tax.
Current tax is provided at amounts expected to be paid
(or recovered) using the tax rates and laws that have been
enacted or substantively enacted by the reporting date
and includes any adjustment to tax payable in respect of
previous years.
Subject to the exceptions below, deferred tax is provided,
using the balance sheet method, on all temporary
differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for
financial reporting purposes and on carry forward of
unused tax credits and unused tax losses:
tax payable on the future remittance of the past
earnings of subsidiaries where the timing of the
reversal of the temporary differences can be controlled
and it is probable that the temporary differences will
not reverse in the foreseeable future;
deferred income tax is not recognised on initial
recognition as well as on the impairment of goodwill
which is not deductible for tax purposes or on the initial
recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the
transaction, affects neither the accounting profit nor
taxable profit (tax loss); and
deferred tax assets (including MAT credit entitlement)
are recognised only to the extent that it is more likely
than not that they will be recovered.
Deferred tax assets and liabilities are measured at the
tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based
on tax rates (and tax laws) that have been enacted
or substantively enacted at the reporting date. Tax
relating to items recognised outside consolidated
statement of profit and loss is recognised outside
consolidated statement of profit and loss (either in other
comprehensive income or equity).
The carrying amount of deferred tax assets (including
MAT credit entitlement) is reviewed at each reporting
date and is adjusted to the extent that it is no longer
probable that sufficient taxable profit will be available to
allow all or part of the asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities
and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Deferred tax is provided on temporary differences
arising on acquisitions that are categorised as Business
Combinations. Deferred tax is recognised at acquisition
as part of the assessment of the fair value of assets and
liabilities acquired. Subsequently deferred tax is charged
or credited in the consolidated statement of profit and
loss/other comprehensive income as the underlying
temporary difference is reversed.
Further, management periodically evaluates positions
taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation
and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The
Group shall reflect the effect of uncertainty for each
uncertain tax treatment by using either most likely
method or expected value method, depending on which
method predicts better resolution of the treatment.
(O) Retirement benefit schemes
The Group operates or participates in a number of
defined benefits and defined contribution schemes, the
assets of which (where funded) are held in separately
administered funds. For defined benefit schemes, the
cost of providing benefits under the plans is determined
by actuarial valuation each year separately for each plan
using the projected unit credit method by third party
qualified actuaries.
Remeasurement including, effects of asset ceiling and
return on plan assets (excluding amounts included in
interest on the net defined benefit liability) and actuarial
gains and losses arising in the year are recognised in full in
other comprehensive income and are not recycled to the
consolidated statement of profit and loss.
Past service costs are recognised in the consolidated
statement of profit and loss on the earlier of:
- the date of the plan amendment or curtailment, and
- the date that the Group recognises related
restructuring costs.
Net interest is calculated by applying a discount rate to
the net defined benefit liability or asset at the beginning
of the period. Defined benefit costs are split into current
service cost, past service cost, net interest expense
or income and remeasurement and gains and losses on
curtailments and settlements. Current service cost and
past service cost are recognised within employee benefit
expense. Net interest expense or income is recognised
within finance costs.
For defined contribution schemes, the amount charged to
the consolidated statement of profit and loss in respect
of pension costs and other post retirement benefits is the
403
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements contributions payable in the year, recognised as and when
the employee renders related services.
(P) Share-based payments
Certain employees (including executive directors) of the
Group receive part of their remuneration in the form of
share-based payment transactions, whereby employees
render services in exchange for shares or rights over
shares (‘equity-settled transactions’).
The cost of equity-settled transactions with employees
is measured at fair value of share awards at the date at
which they are granted. The fair value of share awards
is determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on
the Group’s estimate of shares that will eventually vest.
The estimate of the number of awards likely to vest is
reviewed at each balance sheet date up to the vesting
date at which point the estimate is adjusted to reflect the
current expectations.
The resultant increase in equity is recorded in share-
based payment reserve.
In case of cash-settled transactions, a liability is
recognised for the fair value of cash-settled transactions.
The fair value is measured initially and at each reporting
date up to and including the settlement date, with
changes in fair value recognised in employee benefits
expense. The fair value is expensed over the period until
the vesting date with recognition of a corresponding
liability. The fair value is determined with the assistance
of an external valuer.
(Q) Provisions, contingent liabilities and contingent
assets
The assessments undertaken in recognising provisions
and contingencies have been made in accordance with the
applicable Ind AS.
Provisions represent liabilities for which the amount or
timing is uncertain. Provisions are recognised when the
Group has a present obligation (legal or constructive), as a
result of past events, and it is probable that an outflow of
resources, that can be reliably estimated, will be required
to settle such an obligation.
If the effect of the time value of money is material,
provisions are determined by discounting the expected
future cash flows to net present value using an
appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Unwinding of the discount is recognised in consolidated
statement of profit and loss as a finance cost. Provisions
are reviewed at each reporting date and are adjusted to
reflect the current best estimate.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Group
or a present obligation that is not recognised because it is
not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognised because it cannot be measured reliably.
The Group does not recognize a contingent liability but
discloses its existence in the consolidated balance sheet.
Contingent assets are not recognised but disclosed in the
financial statements when an inflow of economic benefit
is probable.
The Group has significant capital commitments in relation
to various capital projects which are not recognised in the
balance sheet.
(R) Restoration, rehabilitation and environmental
costs
An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
production of a mine or oil fields. Such costs, discounted
to net present value, are provided for and a corresponding
amount is capitalised at the start of each project, as
soon as the obligation to incur such costs arises. These
costs are charged to the consolidated statement of
profit and loss over the life of the operation through
the depreciation of the asset and the unwinding of
the discount on the provision. The cost estimates are
reviewed periodically and are adjusted to reflect known
developments which may have an impact on the cost
estimates or life of operations. The cost of the related
asset is adjusted for changes in the provision due to
factors such as updated cost estimates, changes to lives
of operations, new disturbance and revisions to discount
rates. The adjusted cost of the asset is depreciated
prospectively over the lives of the assets to which they
relate. The unwinding of the discount is shown as finance
cost in the consolidated statement of profit and loss.
Costs for the restoration of subsequent site damage,
which is caused on an ongoing basis during production,
are provided for at their net present value and charged
to the consolidated statement of profit and loss
as extraction progresses. Where the costs of site
restoration are not anticipated to be material, they are
expensed as incurred.
(S) Accounting for foreign currency transactions and
translations
The functional currency for each entity in the Group is
determined as the currency of the primary economic
environment in which it operates. For all principal
< BACK TO CONTENTS
operating subsidiaries, the functional currency is
normally the local currency of the country in which it
operates with the exception of oil and gas business
operations which have a US dollar functional currency as
that is the currency of the primary economic environment
in which it operates. The financial statements are
presented in Indian rupee (`).
gain/loss on long-term foreign currency monetary items
recognised up to 31 March 2016 has been deferred/
capitalised. Such exchange differences arising on
translation/settlement of long-term foreign currency
monetary items and pertaining to the acquisition of a
depreciable asset are amortised over the remaining
useful lives of the assets.
In the financial statements of individual group companies,
transactions in currencies other than the respective
functional currencies are translated into their functional
currencies at the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated
in other currencies are translated into functional
currencies at exchange rates prevailing on the reporting
date. Non-monetary assets and liabilities denominated
in other currencies and measured at historical cost or fair
value are translated at the exchange rates prevailing on
the dates on which such values were determined.
All exchange differences are included in the consolidated
statement of profit and loss except those where the
monetary item is designated as an effective hedging
instrument of the currency risk of designated forecasted
sales or purchases, which are recognised in the other
comprehensive income.
Exchange differences which are regarded as an
adjustment to interest costs on foreign currency
borrowings, are capitalised as part of borrowing costs in
qualifying assets.
For the purposes of the consolidation of financial
statements, items in the consolidated statement of
profit and loss of those businesses for which the Indian
Rupees is not the functional currency are translated into
Indian Rupees at the average rates of exchange during
the year/exchange rates as on the date of transaction.
The related consolidated balance sheet is translated
into Indian rupees at the rates as at the reporting
date. Exchange differences arising on translation
are recognised in consolidated statements of other
comprehensive income. On disposal of such entities the
deferred cumulative exchange differences recognised
in equity relating to that particular foreign operation are
recognised in the consolidated statement of profit
and loss.
The Group had applied paragraph 46A of AS 11 under
Previous GAAP. Ind AS 101 gives an option, which has
been exercised by the Group, whereby a first time adopter
can continue its Indian GAAP policy for accounting for
exchange differences arising from translation of long-
term foreign currency monetary items recognised in
the Indian GAAP financial statements for the period
ending immediately before the beginning of the first Ind
AS financial reporting period. Hence, foreign exchange
Exchange differences arising on translation/settlement
of long-term foreign currency monetary items, acquired
post 01 April 2016, pertaining to the acquisition of a
depreciable asset are charged to the consolidated
statement of profit and loss.
(T) Earnings per share
The Group presents basic and diluted earnings per share
(“EPS”) data for its equity shares. Basic EPS is calculated
by dividing the profit or loss attributable to equity
shareholders of the Company by the weighted average
number of equity shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss
attributable to equity shareholders and the weighted
average number of equity shares outstanding for the
effects of all dilutive potential equity shares.
(U) Buyers’ Credit/Suppliers’ Credit and vendor
financing
The Group enters into arrangements whereby banks and
financial institutions make direct payments to suppliers
for raw materials and project materials. The banks and
financial institutions are subsequently repaid by the
Group at a later date providing working capital timing
benefits. These are normally settled up to twelve months
(for raw materials) and up to 36 months (for project and
materials). Where these arrangements are with a maturity
of up to twelve months, the economic substance of
the transaction is determined to be operating in nature
and these are recognised as operational buyers’ credit/
suppliers’ credit and disclosed on the face of the balance
sheet (Refer note 2(C)(ii)). Interest expense on these are
recognised in the finance cost. Payments made by banks
and financial institutions to the operating vendors are
treated as a non-cash item and settlement of operational
buyer’s credit/suppliers’ credit by the Group is treated
as cash flows from operating activity reflecting the
subtsance of the payment.
Where such arrangements are with a maturity beyond
twelve months and up to thirty six months, the economic
substance of the transaction is determined to be
financing in nature, and these are presented within
borrowings in the consolidated balance sheet. Payments
made to vendors are treated as cash item and disclosed as
cash flows from operating/investing activity depending
on the nature of the underlying transaction. Settlement
of dues to banks and financial institution are treated as
cash flows from financing activity.
404
405
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements (V) Current and non-current classification
The Group presents assets and liabilities in the
consolidated balance sheet based on current/non-
current classification.
An asset is classified as current when it satisfies any of the
following criteria:
- it is expected to be realised in, or is intended for sale or
consumption in, the Group’s normal operating cycle;
- it is held primarily for the purpose of being traded;
- it is expected to be realised within 12 months after the
reporting date; or
- it is cash or cash equivalent unless it is restricted from
being exchanged or used to settle a liability for at least
12 months after the reporting date.
All other assets are classified as non-current.
A liability is classified as current when it satisfies any of
the following criteria:
- it is expected to be settled in the Group’s normal
operating cycle;
- it is held primarily for the purpose of being traded;
- it is due to be settled within 12 months after the
reporting date; or
- the Group does not have an unconditional right to defer
settlement of the liability for at least 12 months after
the reporting date. Terms of a liability that could, at the
option of the counterparty, result in its settlement by the
issue of equity instruments do not affect its classification.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are classified as non
current only.
(W) Borrowing costs
Borrowing cost includes interest expense as per effective
interest rate (EIR) and exchange differences arising
from foreign currency borrowings to the extent they are
regarded as an adjustment to the interest cost.
Borrowing costs directly relating to the acquisition,
construction or production of a qualifying capital project
under construction are capitalised and added to the
project cost during construction until such time that
the assets are substantially ready for their intended use,
i.e. when they are capable of commercial production.
Borrowing costs relating to the construction phase
of a service concession arrangement is capitalised as
part of the cost of the intangible asset. Where funds
are borrowed specifically to finance a qualifying capital
project, the amount capitalised represents the actual
borrowing costs incurred. Where surplus funds are
available out of money borrowed specifically to finance
a qualifying capital project, the income generated from
such short-term investments is deducted from the total
capitalised borrowing cost. If any specific borrowing
remains outstanding after the related asset is ready for
its intended use or sale, that borrowing then becomes
part of general borrowing. Where the funds used to
finance a project form part of general borrowings, the
amount capitalised is calculated using a weighted average
of rates applicable to relevant general borrowings of the
Group during the year.
All other borrowing costs are recognised in the
consolidated statement of profit and loss in the year in
which they are incurred.
Capitalisation of interest on borrowings related to
construction or development projects is ceased when
substantially all the activities that are necessary to make
the assets ready for their intended use are complete
or when delays occur outside of the normal course of
business.
EIR is the rate that exactly discounts the estimated future
cash payments or receipts over the expected life of the
financial liability or a shorter period, where appropriate, to
the amortised cost of a financial liability. When calculating
the effective interest rate, the Group estimates the
expected cash flows by considering all the contractual
terms of the financial instrument (for example,
prepayment, extension, call and similar options).
(X) Treasury shares
The Group has created an Employee Benefit Trust (EBT)
for providing share-based payment to its employees.
The Group uses EBT as a vehicle for distributing shares to
employees under the employee remuneration schemes.
The EBT buys shares of the Company from the market,
for giving shares to employees. The shares held by EBT
are treated as treasury shares.
Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from equity.
No gain or loss is recognised in profit or loss on the
purchase, sale, issue or cancellation of the Group’s own
equity instruments. Any difference between the carrying
amount and the consideration, if reissued, is recognised
in equity. Share options whenever exercised, would be
satisfied with treasury shares.
(Y) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and
on hand and short-term money market deposits which
have maturity of three months or less from the date
of acquisition, that are readily convertible to known
amounts of cash and which are subject to an insignificant
risk of changes in value.
406
< BACK TO CONTENTS
For the purpose of the consolidated statement of cash
flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above.
(Z) Exceptional items
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information allows
an understanding of the underlying performance of the
business in the year, so as to facilitate comparison with
prior periods. Also tax charges related to exceptional
items and certain one-time tax effects are considered
exceptional. Such items are material by nature or amount
to the year’s result and require separate disclosure in
accordance with Ind AS.
3(b) APPLICATION OF NEW AND AMENDED
STANDARDS
(A) The Group has adopted, with effect from 01
April 2020, the following new and revised standards
and interpretations. Their adoption has not had any
significant impact on the amounts reported in the
consolidated financial statements.
1.
2.
3.
4.
Amendments to Ind AS 103 regarding definition of a
Business
Amendments to Ind AS 107 and 109 regarding
Interest Rate Benchmark Reform
Amendments to Ind AS 1 and Ind AS 8 regarding
definition of Material
Amendments to Ind AS 116 regarding COVID-19
related rent concessions
Other Amendments
A number of other minor amendments to existing
standards also became effective on 01 April 2020 and
have been adopted by the Group. The adoption of
these new accounting pronouncements did not have a
material impact on the accounting policies, methods of
computation or presentation applied by the Group.
(B) Standards notified but not yet effective
There are no new standards that are notified, but not
yet effective, up to the date of issuance of the Group’s
financial statements.
3(c) SIGNIFICANT ACCOUNTING ESTIMATES AND
JUDGEMENTS
The preparation of consolidated financial statements in
conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the
date of these consolidated financial statements and the
reported amounts of revenues and expenses for the
years presented. These judgements and estimates are
based on management’s best knowledge of the relevant
facts and circumstances, having regard to previous
experience, but actual results may differ materially from
the amounts included in the financial statements.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and future periods affected.
The information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial statements
are as given below:
Impact of COVID-19
(A) Significant estimates
i)
The outbreak of novel Coronavirus (COVID-19) pandemic
globally and in India and the consequent lockdown
restrictions imposed by national governments is causing
significant disturbance and slowdown of economic
activity across the globe. The commodity prices including
oil have seen significant volatility with downward price
pressures due to major demand centers affected
by lockdown.
The Group is in the business of metals and mining, Oil
& gas and generation of power which are considered as
either essential goods and services or were generally
allowed to continue to carry out the operations with
adequate safety measures. The Group has taken
proactive measures to comply with various regulations/
guidelines issued by the Government and local bodies to
ensure safety of its workforce and the society in general.
The Group has considered possible effects of Covid-19
on the recoverability of its investments, property,
plant and equipment (PPE), inventories, loans and
receivables, etc in accordance with Ind AS. The Group
has considered forecast consensus, industry reports,
economic indicators and general business conditions to
make an assessment of the implications of the Pandemic.
The Group has also performed sensitivity analysis on
the assumptions used basis the internal and external
information/indicators of future economic condition.
Based on the assessment, the Group had recorded
necessary adjustments, including impairment to the
extent the carrying amount exceeds the recoverable
amount and has disclosed the same as exceptional item
during the previous year ended 31 March 2020. No such
impairments were identified during the current year.
The actual effects of COVID-19 could be different from
what is presently assessed and would be known only in
407
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements due course of time, however no further adjustments are
considered necessary at this stage.
ii) Oil and gas reserves
Significant technical and commercial judgements are
required to determine the Group’s estimated oil and
natural gas reserves. Reserves considered for computing
depletion are proved reserves for acquisition costs
and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. Reserves
for this purpose are considered on working interest basis
which are reassessed atleast annually. Details of such
reserves are given in note 43.
Changes in reserves as a result of change in management
assumptions could impact the depreciation rates and the
carrying value of assets (refer note 6).
iii) Carrying value of exploration and evaluation
assets
Exploration assets are assessed by comparing the
carrying value to higher of fair value less cost of disposal
or value in use if impairment indicators, as contained in
Ind AS 106, exists. Change to the valuation of exploration
assets is an area of judgement. Further details on
the Group’s accounting policies on this are set out in
accounting policy above. The amounts for exploration
and evaluation assets represent active exploration
projects. These amounts will be written off to the
consolidated statement of profit and loss as exploration
costs unless commercial reserves are established or the
determination process is not completed and there are
no indications of impairment. The outcome of ongoing
exploration, and therefore whether the carrying value
of exploration and evaluation assets will ultimately be
recovered, is inherently uncertain.
Details of carrying values are disclosed in note 6.
iv) Carrying value of developing/producing oil and gas
assets
Management performs impairment tests on the
Company’s developing/producing oil and gas assets
where indicators of impairment or impairment reversal
of previously recorded impairment are identified in
accordance with Ind AS 36.
In the current year, the management has reviewed
the key assumptions i.e. future production, oil prices,
discount to price, Production sharing contract (PSC)
life, discount rates, etc. for all of its oil and gas assets.
Based on analysis of events that have occurred since
then, there did not exist any indication that the assets
may be impaired or previously recorded impairment
charge may reverse. Hence, detailed impairment
analysis has not been conducted in the current financial
408
year. However during the year ended 31 March 2020,
management had performed impairment tests on the
Company’s developing/producing oil and gas assets and
the impairment assessments were based on a range of
estimates and assumptions, including:
Estimates/
assumptions
Future
production
Commodity
prices
Basis
proved and probable reserves, production
facilities, resource estimates and expansion
projects
management’s best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
Discount to price management’s best estimate based on
historical prevailing discount and updated
sales contracts
Extension of PSC granted till 2030 on the expected
Discount rates
commercial terms (Refer note 3(c)(A)(viii)
cost of capital risk-adjusted for the risk
specific to the asset/CGU
Details of carrying values are disclosed in note 6.
v) Mining properties and leases
The carrying value of mining property and leases is
arrived at by depreciating the assets over the life of
the mine using the unit of production method based on
proved & developed reserves. The estimate of reserves
is subject to assumptions relating to life of the mine and
may change when new information becomes available.
Changes in reserves as a result of factors such as
production cost, recovery rates, grade of reserves or
commodity prices could thus impact the carrying values
of mining properties and leases and environmental and
restoration provisions.
Management performs impairment tests when there is an
indication of impairment. The impairment assessments
are based on a range of estimates and assumptions,
including:
Estimates/
assumptions
Future
Production
Commodity
Prices
Basis
Proved and probable reserves, resource
estimates (with an appropriate conversion
factor) considering the expected permitted
mining volumes and, in certain cases,
expansion projects.
Management's best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
Exchange Rates Management best estimate benchmarked
Discount Rates
with external sources of information
Cost of capital risk-adjusted for the risk
specific to the asset/CGU
< BACK TO CONTENTS
There is no impairment recognised during the year. For
the year ended 31 March 2020, details of impairment
charge and the assumptions used and carrying value are
disclosed in note 34 and 6 respectively.
vi) Recoverability of deferred tax and other income
tax assets
The Group has carry forward tax losses, unabsorbed
depreciation and MAT credit that are available for offset
against future taxable profit. Deferred tax assets are
recognised only to the extent that it is probable that
taxable profit will be available against which the unused
tax losses or tax credits can be utilised. This involves an
assessment of when those assets are likely to reverse,
and a judgement as to whether or not there will be
sufficient taxable profits available to offset the assets.
This requires assumptions regarding future profitability,
which is inherently uncertain. To the extent assumptions
regarding future profitability change, there can be an
increase or decrease in the amounts recognised in
respect of deferred tax assets and consequential impact
in the consolidated statement of profit and loss.
The total deferred tax assets recognised in these
financial statement (refer note 35) includes MAT credit
entitlements of `8,232 crores (FY19-20: `9,122 crores),
of which `340 crores is expected to be utilised in the
fourteenth year (FY19-20: `3,600 crores was expected to
be utilised in fourteenth and fifteenth year), fifteen years
being the maximum permissible time period to utilise the
MAT credits.
Additionally, the Group has tax receivables on account
of refund arising on account of past amalgamation and
relating to various tax disputes. The recoverability of
these receivables involve application of judgement
as to the ultimate outcome of the tax assessment
and litigations. This pertains to the application of
the legislation, which in certain cases is based upon
management’s interpretation of country specific tax
law, in particular India, and the likelihood of settlement.
Management uses in-house and external legal
professionals to make informed decision.
(vii) Copper operations in Tamil Nadu, India
In an appeal filed by the Group against the closure
order of the Tuticorin Copper smelter by Tamil Nadu
Pollution Control Board (“TNPCB”), the appellate
authority National Green Tribunal (“NGT”) passed
an interim order on 31 May 2013 allowing the copper
smelter to recommence operations and appointed
an Expert Committee to submit a report on the
plant operations. Post the interim order, the plant
recommenced operations on 23 June 2013. Based on
Expert Committee’s report on the operations of the plant
stating that the plant’s emission were within prescribed
standards and based on this report, NGT ruled on
08 August 2013 that the Copper smelter could continue
its operations and recommendations made by the Expert
Committee be implemented in a time bound manner.
The Group has implemented all of the recommendations.
TNPCB has filed an appeal against the order of the NGT
before the Supreme Court of India.
In the meanwhile, the application for renewal of Consent
to Operate (CTO) for existing copper smelter, required as
per procedure established by law was rejected by TNPCB
in April 2018. Vedanta Limited has filed an appeal before
the TNPCB Appellate Authority challenging the Rejection
Order. During the pendency of the appeal, there
were protests by a section of local community raising
environmental concerns and TNPCB vide its order dated
23 May 2018 ordered closure of existing copper smelter
plant with immediate effect. Further, the Government
of Tamil Nadu, issued orders dated 28 May 2018 with
a direction to seal the existing copper smelter plant
permanently. The Company believes these actions were
not taken in accordance with the procedure prescribed
under applicable laws. Subsequently, the Directorate of
Industrial Safety and Health passed orders dated 30 May
2018, directing the immediate suspension and revocation
of the Factory License and the Registration Certificate for
the existing smelter plant.
The Company appealed this before the National Green
Tribunal (NGT). NGT vide its order on 15 December 2018
has set aside the impugned orders and directed the
TNPCB to pass fresh orders for renewal of consent and
authorisation to handle hazardous substances, subject to
appropriate conditions for protection of environment in
accordance with law.
The State of Tamil Nadu and TNPCB approached
Supreme Court in Civil Appeals on 02 January 2019
challenging the judgement of NGT dated 15 December
2018 and the previously passed judgement of NGT dated
08 August 2013. The Supreme Court vide its judgement
dated 18 February 2019 set aside the judgements of NGT
dated 15 December 2018 and 08 August 2013 solely on
the basis of maintainability and directed the Company to
file an appeal in High court.
The Company has filed a writ petition before Madras High
Court challenging the various orders passed against
the Company in 2018 and 2013. On 18 August 2020, the
Madras High Court delivered the judgement wherein it
dismissed all the Writ Petitions filed by the Company.
The Company has approached the Supreme Court and
challenged the said High Court order by way of a Special
Leave Petition (SLP) to Appeal and also filed an interim
relief for care & maintenance of the plant. The matter
was then listed on 02 December 2020 before Supreme
409
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements Court Bench. The Bench after having heard both the sides
concluded that at this stage the interim relief in terms
of trial run could not be allowed. Further, considering
the voluminous nature of documents and pleadings, the
matter shall be finally heard on merits.The matter was
again mentioned before the bench on 17 March 2021,
wherein the matter was posted for hearing on
17 August 2021.
However, subsequent to the year end, the Company
approached the Supreme Court offering to supply
medical oxygen from the said facility in view of prevailing
COVID-19 situation, which was allowed by the Supreme
Court, under supervision of a committee constituted by
the Government of Tamil Nadu.
As per the Company’s assessment, it is in compliance
with the applicable regulations and expects to get
the necessary approvals in relation to the existing
operations and hence the Company does not expect any
material adjustments to these financial statements as a
consequence of above actions.
The Company has carried out an impairment analysis for
existing plant assets during the period ended 31 March
2021 considering the key variables and concluded that
there exists no impairment. The Company has done an
additional sensitivity analysis with commencement of
operations of the existing plant w.e.f. 01 April 2024 and
noted that the recoverable amount of the assets would
still be in excess of their carrying values.
The carrying value of the assets as at 31 March 2020 is
`2,328 crores and 31 March 2021 is `2,144 crores.
Expansion Project:
Separately, the Company has filed a fresh application for
renewal of the Environmental Clearance for the proposed
Copper Smelter Plant 2 (Expansion Project) dated March
12, 2018 before the Expert Appraisal Committee of the
MoEFCC wherein a sub-committee was directed to visit
the Expansion Project site prior to prescribing the Terms
of Reference.
In the meantime, the Madurai Bench of the High Court of
Madras in a Public Interest Litigation held vide its order
dated 23 May 2018 that the application for renewal of the
Environmental Clearance for the Expansion Project shall
be processed after a mandatory public hearing and in
the interim, ordered the Company to cease construction
and all other activities on site for the proposed
Expansion Project with immediate effect. The Ministry of
Environment, Forests and Climate Change (MoEFCC) has
delisted the Expansion Project since the matter is sub-
judice. Separately, SIPCOT vide its letter dated 29 May
2018, cancelled 342.22 acres of the land allotted for the
proposed Expansion Project. Further, the TNPCB issued
orders on 07 June 2018 directing the withdrawal of the
410
Consent to Establish (CTE) which was valid till
31 March 2023.
The Company has approached Madras High Court by
way of writ petition challenging the cancellation of lease
deeds by SIPCOT pursuant to which an interim stay
has been granted. The Company has also filed Appeals
before the TNPCB Appellate Authority challenging
withdrawal of CTE by the TNPCB, the matter is pending
for adjudication. Considering the delay in existing plant
matter and accordingly delay in getting the required
approval for Expansion Project, management considered
to make provision for impairment for Expansion Project
basis fair value less cost of disposal and accordingly
made impairment provision of `669 crores in March
2020. During the current period, there are no updates
in the expansion matter and impairment provision of
`669 crores is adequate and the net carrying value of `97
crores as at 31 March 2021 approximates its recoverable
value.
Impairment recognised during the year ended
31 March 2020
For the expansion plant, the project activities are on
halt since May 2018. Further, the project EC for the
expansion plant got expired on 31 December 2018 and
fresh application is filed before the competent authority,
however, the process will start only after reopening of the
existing plant and after obtaining all statutory approvals,
the timing of which is uncertain.
Keeping in view the above factors and the fact that value
in use cannot be reasonably ascertained, the Company
has carried out recoverability assessment of the items of
property, plant and equipment, capital work-in-progress
(CWIP) and capital advances. Based on the realisable value
estimate of `288 crores, the Company has recognised an
impairment of `669 crores (comprising of CWIP balances
of `435 crores, capital advances of `196 crores and other
assets of `38 crores) during the year.
Property, plant and equipment of `1,337 crores and
inventories of `284 crores, pertaining to existing and
expansion plant, could not be physically verified, anytime
during the year, as the access to the plant is presently
restricted. However, since operations are suspended and
access to the plant restricted, any difference between
book and physical quantities is unlikely to be material.
(viii) PSC Extension
Rajasthan Block
The Company operates an oil and gas production facility
in Rajasthan under a Production Sharing Contract
(“PSC”). The management is of the opinion that the
Company is eligible for automatic extension of the PSC
for Rajasthan (“RJ”) block on same terms w.e.f. 15 May
2020, while Government of India (“GoI”) in October 2018,
< BACK TO CONTENTS
accorded its approval for extension of the PSC, under the
Pre-NELP Extension policy as per notification dated 07
April 2017 (“Pre-NELP Policy”), for RJ block by a period
of 10 years, w.e.f. 15 May 2020. As per the said policy and
extension letter, the Company is required to comply with
certain conditions and pay an additional 10% profit oil to
GoI. The Company had challenged the applicability of Pre
NELP Policy to the RJ block. The Division Bench of the
Delhi High Court in March 2021 set aside the single judge
order of May 2018 which allowed automatic extension of
PSC. The Company is studying the order and all available
legal remedies are being evaluated for further action as
appropriate.
One of the conditions for extension of PSC relates to
notification of certain audit exceptions raised for FY16-
17 as per PSC provisions and provides for payment of
amounts, if such audit exceptions result into any creation
of liability.
The Directorate General of Hydrocarbons (“DGH”)
in May 2018 raised a demand on the Company and
its subsidiary for the period up to 31 March 2017 for
Government’s additional share of Profit oil based on its
computation of disallowance of costs incurred in excess
of the initially approved Field Development Plan (“FDP”)
of the pipeline project for `1,477 crores (US$202 million)
and retrospective re-allocation of certain common
costs between Development Areas (“DAs”) of RJ block
aggregating to `2,669 crores (US$364 million). The DGH
vide its letter dated 12 May 2020, reiterated its demand
only with respect to the retrospective re-allocation of
certain common costs between DAs of the RJ block of
`2,669 crores (US$364 million towards contractor share
for the period up to 31 March 2017. This amount was
subsequently revised to `3,360 crores (US$458 million) till
March 2018 vide DGH letter dated 24 December 2020.
The Company in January 2020 received notifications
from the DGH on audit exceptions arising out of its audit
for the FY2017-18, which comprises the consequential
effects on profit oil due to the aforesaid matters and
certain new matters on cost allowability plus interest
aggregating to US$645 million, representing share of
the Company and its subsidiary, CEHL (“the Claimants”),
which have been suitably responded to by the Company.
The Company believes that it has sufficient as well as
reasonable basis pursuant to the PSC provisions and
related approvals, supported by legal advice, for having
claimed such costs and for allocating common costs
between different DAs. In the Company’s opinion, these
computations of the aforesaid demand/audit exceptions
are not appropriate, and the accounting adjustments
sought for issues pertaining to Year 2007 and onwards
are based on assumptions that are not in consonance
with the approvals already in place. The Company’s view
is also supported by independent legal opinion and the
Company has been following the process set out in PSC
to resolve these aforesaid matters. The Company has
also invoked the PSC process for resolution of disputed
exceptions and has issued notice for arbitration and the
tribunal stands constituted. Further, on 23 September
2020, the GoI had filed an application for interim relief
before Delhi High Court seeking payment of all disputed
dues. This matter is now scheduled for hearing on
20 May 2021.
Also, on Vedanta’s application under Section 17 of the
Arbitration and Conciliation Act, 1996, the tribunal in
December 2020 ordered that GoI should not take any
action to enforce any of the amounts at issue in this
arbitration against the Claimants during the arbitral
period. The GoI has challenged the said order before the
Delhi High Court under the said Act. This matter is also
scheduled for hearing on 20 May 2021.
In management’s view, the above mentioned condition
on demand raised by the DGH for additional petroleum
linked to PSC extension is untenable and has not resulted
in creation of any liability and cannot be a ground for
non-extension. In addition, all necessary procedures
prescribed in the PSC including invocation of arbitration,
in respect of the stated audit observation have also been
fulfilled. Accordingly, the PSC extension approval granted
vide DGH letter dated 26 October 2018 upholds with
all conditions addressed and no material liability would
devolve upon the Group.
Simultaneously, the Company is also pursuing with the
GoI for executing the RJ PSC addendum at the earliest.
In view of extenuating circumstances surrounding
COVID-19 and pending signing of the PSC addendum for
extension after complying with all stipulated conditions,
the GoI has been granting interim permission to the
Company to continue Petroleum operations in the RJ
block. The latest permission is valid up to 31 July 2021 or
signing of the PSC addendum, whichever is earlier.
Ravva Block
The Government of India (GoI) has granted its approval
for a ten-year extension of PSC for Ravva Block with
effect from 28 October 2019, in terms of the provision of
the “Policy on the Grant of the extension to Production
Sharing Contract Signed by Government awarding
small, medium-sized and discovered field to private joint
ventures” dated 28 March 2016. The PSC addendum
recording this extension has been executed by all parties.
The Ravva Extension Policy, amongst others, provides for
an increased share of profit petroleum of 10% for the GoI
during the extended term of the Ravva PSC and payment
of royalty and cess as per prevailing rate in accordance
with the PNG Rules, 1959 and OIDB Act. Under the
Ravva PSC, –the Company’s oil and gas business is
411
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements entitled to recover 100% of cost of production and
development from crude oil and natural gas sales before
any profit is allocated among the parties. Cost recovery
for exploration cost during extension period shall be
governed as per the provision of Office Memorandum
2013, 2019 issued by MoPNG on exploration in mining
lease area post expiry of the exploration period.
(ix)
Impact of Taxation Laws (Amendment) Act, 2019
Pursuant to the introduction of Section 115BAA of the
Income Tax Act, 1961 which is effective 01 April 2019,
companies in India have the option to pay corporate
income tax at the rate of 22% plus applicable surcharge
and cess as against the earlier rate of 30% plus applicable
surcharge and cess, subject to certain conditions
like, the Company has to forego all benefits like tax
holidays, brought forward losses generated through
tax incentives/additional depreciation and outstanding
MAT credit. Considering all the provisions under Section
115BAA and based on the expected timing of exercising
of the option under Section 115BAA, the Group has re-
measured its deferred tax balances as at 31 March 2021.
This computation required assessment of assumptions
regarding future profitability, which is inherently
uncertain. To the extent assumptions regarding future
profitability change, there can be increase or decrease in
the amounts recognised. Refer note 35(b) for details.
(x) ESL Steel Limited (formerly known as Electrosteel
Steels Limited) (ESL), had filed application for renewal of
Consent to Operate (‘CTO’) on 24 August 2017 for the
period of five years which was denied by Jharkhand State
Pollution Control Board (‘JSPCB’) on 23 August 2018,
as JSPBC awaited response from MoEFCC over a 2012
show-cause notice. After a personal hearing towards
the show cause notice, the Ministry of Environment,
Forests and Climate Change revoked the Environmental
Clearance (EC) on 20 September 2018. The Hon’ble High
Court of Jharkhand granted stay against both revocation
orders, and allowed the continuous running of the plant
operations under regulatory supervision of the JSPCB.
Jharkhand High Court on 16 September 2020 passed
an order vacating the interim stay in place beyond 23
September 2020, while listed the matter for final hearing.
ESL filed an Special Leave Petition (SLP) in the Supreme
Court, and on 22 September 2020, ESL was granted
permission to run the plant till further orders. Next date
of High Court hearing is 25 June 2021 and Supreme Court
hearing is yet to be listed.
The Forest Advisory Committee (FAC) of MoEFCC
granted the Stage 1 clearance and the MoEF&CC
approved the related Terms of Reference (TOR) on 25
August 2020. As per Stage 1 clearance, the Company
is required to provide non-forest land in addition to the
afforestation cost. The Company, based on the report
of an EIA consultant, has recognised a provision of `213
412
crores as an exceptional item in these financial statement
with respect to the costs to be incurred by the Company
for obtaining Enviornment Clearance.
(xi) Assessment of impairment of assets at Aluminium
division
During year ended 31 March 2020, considering lower
sales realisation, an impairment trigger was identified
in the aluminium division of the Group. The impairment
assessments are based on a range of estimates and
assumptions, including:
Estimates/
assumptions
Future
production
Commodity
prices
Discount rates
Basis
Proved and probable reserves, production
facilities, resource estimates and expansion
projects
management’s best estimate benchmarked
with external sources of information, to
ensure they are within the range of available
analyst forecast
cost of capital risk-adjusted for the risk
specific to the asset/CGU
During the previous year, the Group had carried out an
impairment analysis, based on value in use approach,
considering the key variables and concluded that
there existed no impairment. The Group had carried
out sensitivity analysis on key assumptions including
commodity price, discount rate and delay in expansion
of refinery. Based on sensitivity analysis, the recoverable
amount was expected to exceed the carrying value
as at 31 March 2020 of `36,992 crores. No negative
developments have occurred since the previous year,
while the commodity price have increased. Accordingly,
it is not expected that the carrying amount would exceed
the recoverable amount and hence the recoverable value
for the year ended 31 March 2021 was not re-determined.
(xii) Going Concern
Considering the uncertainties caused due to Covid-19,
the Group prepared its cash flow forecasts under various
scenarios and has performed additional sensitivities on
certain key assumptions. Based on such an analysis and
assessment of its ability to raise additional capital, the
Group continues to prepare its financial statements on a
going concern basis.
(B) Significant judgements
(i) Determining whether an arrangement contains a
lease:
The Group has ascertained that the Power Purchase
Agreement (PPA) entered into between one of the
subsidiaries and a State grid qualifies to be an operating
lease under Ind AS 116 “Leases”. Accordingly, the
consideration receivable under the PPA relating to
recovery of capacity charges towards capital cost have
been recognised as operating lease rentals and in respect
< BACK TO CONTENTS
of variable cost that includes fuel costs, operations and
maintenance, etc. is considered as revenue from sale of
products/services.
Significant judgement is required in segregating the
capacity charges due from the State grid, between fixed
and contingent payments. The Group has determined
that since the capacity charges under the PPA are based
on the number of units of electricity made available by its
Subsidiary which would be subject to variation on account
of various factors like availability of coal and water for the
plant, there are no fixed minimum payments under the
PPA, which requires it to be accounted for on a straight
line basis. The contingent rents recognised are disclosed
in Note 25.
(ii) Contingencies
In the normal course of business, contingent liabilities
may arise from litigation, taxation and other claims
against the Group. A provision is recognised when the
Group has a present obligation as a result of past events
and it is probable that the Group will be required to settle
that obligation.
Where it is management’s assessment that the outcome
cannot be reliably quantified or is uncertain, the claims
are disclosed as contingent liabilities unless the likelihood
of an adverse outcome is remote. Such liabilities are
disclosed in the notes but are not provided for in the
financial statements.
When considering the classification of legal or tax
cases as probable, possible or remote, there is
judgement involved. This pertains to the application
of the legislation, which in certain cases is based upon
management’s interpretation of country specific
applicable law, in particular India, and the likelihood of
settlement. Management uses in-house and external
legal professionals to make informed decision. Although
there can be no assurance regarding the final outcome of
the legal proceedings, the Group does not expect them to
have a materially adverse impact on the Group’s financial
position or profitability. These are set out in note 38.
(iii) Revenue recognition and receivable recovery in
relation to the power division
In certain cases, the Group’s power customers are
disputing various contractual provisions of Power
Purchase Agreements (PPA). Significant judgement is
required in both assessing the tariff to be charged under
the PPA in accordance with Ind AS 115 and to assess the
recoverability of withheld revenue currently accounted
for as receivables.
In assessing this critical judgement, management
considered favourable external legal opinions that the
Group has obtained in relation to the claims. In addition,
the fact that the contracts are with government owned
companies implies the credit risk is low (refer note 8(c)).
(iv) Exceptional Items
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information allows
an understanding of the underlying performance of the
business in the year, so as to facilitate comparison with
prior periods. Also tax charges related to exceptional
items and certain one-time tax effects are considered
exceptional. Such items are material by nature or amount
to the year’s result and require separate disclosure in
accordance with Ind AS.
The determination as to which items should be disclosed
separately requires a degree of judgement. The details of
exceptional items are set out in note 34.
413
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements < BACK TO CONTENTS
The carrying amount of all assets and liabilities within
the working capital equals their fair value. None of the
Trade receivables was impaired and the full contractual
amount were expected to be realised. Mining Rights have
been valued considering the With or Without method,
i.e. based on the cost savings resulting from the usage of
the mines vis a vis procurement of raw material (chrome
ore) from external vendors. Land has been valued based
on the Right to Fair Compensation and Transparency
in Land Acquisition, Rehabilitation and Resettlement
Act. Buildings, Plant & Machinery, Other Tangible
Assets, Capital Work-in-Progress and Capital Advances
pertaining to the Tangible Assets together have been
estimated based on the Value in Use of FACOR under the
Income Approach.
Non-controlling interest has been measured at the
non-controlling interest’s proportionate share of FPL’s
identifiable net assets.
Acquisition costs of `3 crores have been charged to the
consolidated statement of profit and loss.
b) Acquisition of Global coke plant
On 28 July 2019, the Group acquired Sindhudurg plant
of Global Coke Limited which was under liquidation as
per the Insolvency and Bankruptcy Code 2016 (including
all amendments for the time being in force) for a cash
consideration of `33 crores. The assets acquired
mainly included Land, Building and Plant & Machinery of
similar value as the cash consideration. The acquisition
complements backward integration opportunity for
the Group’s existing pig iron division and also increase
Group’s footprint in met coke market in south western
part of India. Detailed disclosure of fair value of the
identifiable assets and liabilities of Sindhudurg plant has
not been provided as the same is not material.
Acquisition costs related to the same were not material.
5
SEGMENT INFORMATION
A) Description of segment and principal activities
The Group is a diversified natural resource group engaged
in exploring, extracting and processing minerals and oil
and gas. The Group produces zinc, lead, silver, copper,
aluminium, iron ore, oil and gas, ferro alloys and steel
and commercial power and has a presence across India,
South Africa, Namibia, U.A.E, Ireland, Australia, Japan,
South Korea, Taiwan and Liberia. The Group is also in the
business of port operations and manufacturing of glass
substrate. The Group has seven reportable segments:
copper, aluminium, iron ore, power, Zinc India (comprises
of zinc and lead India), Zinc international, oil and gas and
others. The management of the Group is organised by its
main products: copper, Zinc (comprises of zinc and lead
India, silver India and zinc international), aluminium, iron
ore, oil and gas, power and others. “Others” segment
mainly comprises of port/berth, steel, glass substrate
and ferro alloys business and those segments which
do not meet the quantitative threshold for separate
reporting. Each of the reportable segments derives its
revenues from these main products and hence these have
been identified as reportable segments by the Group’s
chief operating decision maker (“CODM”).
Segment Revenue, Results, Assets and Liabilities
include the respective amounts identifiable to each of
the segments and amount allocated on a reasonable
basis. Unallocated expenditure consist of common
expenditure incurred for all the segments and expenses
incurred at corporate level. The assets and liabilities
that cannot be allocated between the segments are
shown as unallocated assets and unallocated liabilities
respectively.
The accounting policies of the reportable segments are
the same as the Group’s accounting policies described
in Note 3. The operating segments reported are the
segments of the Group for which separate financial
information is available. Earnings before interest,
depreciation and amortisation and tax (EBITDA) are
evaluated regularly by the CODM in deciding how to
allocate resources and in assessing performance. The
Group’s financing (including finance costs and finance
income) and income taxes are reviewed on an overall basis
and are not allocated to operating segments.
Pricing between operating segments are on an arm’s
length basis in a manner similar to transactions with third
parties.
The following table presents revenue and profit
information and certain assets and liabilities information
regarding the Group’s business segments as at and
for the year ended 31 March 2021 and 31 March 2020
respectively.
4
BUSINESS COMBINATION AND OTHERS
Ferro Alloys Corporation Limited - Business Combination
a)
On 21 September 2020, the Company acquired control over Ferro Alloys Corporation Limited (“FACOR”). FACOR was
admitted under Corporate insolvency resolution process in terms of the Insolvency and Bankruptcy Code, 2016 of
India. The National Company Law Tribunal (NCLT) vide its order dated 30 January 2020 approved the resolution plan for
acquiring controlling stake in FACOR. Pursuant to the approved resolution plan, FACOR has become a wholly-owned
subsidiary of the Company. FACOR holds 90% equity in its subsidiary, Facor Power Limited (FPL).
FACOR is in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two
operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary, FACOR Power Limited (FPL).
The acquisition will complement the Group’s existing steel business as the vertical integration of ferro manufacturing
capabilities has the potential to generate significant efficiencies.
The fair value of the identifiable assets and liabilities of FACOR as at the date of the acquisition were as follows:
Particulars
Property, Plant and Equipment including Capital work-in-progress
Intangible assets
Bank deposits
Non-current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Other bank balances
Other financial assets
Other current assets
Current assets
Total Assets (A)
Borrowings
Deferred tax liabilities
Trade payables
Other financial liabilities
Provisions
Other current liabilities
Total Liabilities (B)
Net Assets (C = A-B)
Satisfied by:
Cash Consideration Paid for Equity acquired
Cash Consideration Paid for Debt acquired
Zero coupon Non-Convertible Debentures issued by FACOR repayable equally over 4 years commencing
March 2021 (Nominal value `287 crores)*
Total Purchase consideration (D)
Non-Controlling interest on acquisition (10% of net liabilities of FPL) (E)
Bargain Gain recognised directly in equity (capital reserve) (C-D-E)
*Includes NCDs of nominal value `3 crores yet to be issued as part of purchase consideration.
(` in crores)
Fair Value at
Acquisition
134
220
9
363
46
5
11
69
1
31
163
526
9
60
10
19
7
37
142
384
34
22
236
292
(31)
123
Since the date of acquisition, FACOR has contributed `274 crores and `40 crores to the Group revenue and profit before
taxation respectively for the year ended 31 March 2021.
If FACOR had been acquired at the beginning of the year, the Group revenue would have been `87,087 crores and the
profit before exceptional items and tax of the Group would have been `17,823 crores.
414
415
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
For the year ended 31 March 2021
For the year ended 31 March 2020
Particulars
Zinc India
Zinc
International
Oil & Gas Aluminium Copper Iron Ore
Power
Others Eliminations
Total
Particulars
Zinc India
Zinc
International
Oil & Gas Aluminium Copper Iron Ore
Power
Others Eliminations
Total
Business Segments
(` in crores)
Business Segments
(` in crores)
Revenue
External Revenue
Inter segment revenue
Segment revenue
Results
EBITDA*
Depreciation, depletion and
amortisation
Other income **
Segment Results
Less: Unallocated expenses
Less: Finance costs
Add: Other income (excluding
exchange difference and
those included in segment
results)
Add: Net exceptional loss
Net profit/(loss) before tax
Other information
Segment assets
Financial Assets investments
Deferred tax Assets
Income tax Assets
Cash and bank balances
(Including restricted cash and
bank balances)
Others
Total assets
Segment liabilities
Deferred tax liabilities
Borrowing
Income tax liabilities (net of
payments)
Others
Total liabilities
Capital expenditure***
Capital work-in-progress
written off/Impairment
charge – net/provision
21,932
-
21,932
11,620
2,592
125
9,153
2,729
-
2,729
7,531
-
7,531
28,575 10,888
2
28,644 10,890
69
4,487
41
4,528
5,375
-
5,375
5,346
31
5,377
-
(143)
(143)
811
320
3,206
1,223
7,751
1,928
(177)
218
1,804
96
1,407
693
-
491
-
1,983
75
5,898
3
(392)
8
1,716
17
731
919
568
1
352
-
-
-
-
21,302
6,065
18,915
54,764
6,273
2,722
17,565
7,862
-
5,929
1,067
11,178
18,565
4,388
1,319
2,123
2,126
-
2,333
-
390
1,523
-
1,782
(181)
58
-
112
57
598
(63)
-
-
86,863
-
86,863
27,341
7,638
229
19,932
129
5,210
3,040
(678)
17,213
1,35,468
16,660
5,860
2,755
16,744
8,210
1,85,697
46,695
2,215
57,028
277
2,066
1,08,281
6,855
(244)
Revenue
External Revenue
Inter segment revenue
Segment revenue
Results
EBITDA*
Depreciation, depletion and
amortisation
Other income **
Segment Results
Less: Unallocated expenses
Less: Finance costs
Add: Other income (excluding
exchange difference and
those included in segment
results)
Add: Net exceptional gain
Net profit/(loss) before tax
Other information
Segment assets
Financial Assets investments
Deferred tax Assets
Income tax Assets
Cash and bank balances
(Including restricted cash and
bank balances)
Others
Total assets
Segment liabilities
Deferred tax liabilities
Borrowing
Income tax liabilities (net of
payments)
Others
Total liabilities
Capital expenditure***
Impairment reversal/
(charge) - net/provision
18,159
-
18,159
8,714
2,367
101
6,448
3,128
-
3,128
12,661
-
12,661
26,544
33
26,577
9,053
-
9,053
3,450
13
3,463
5,860
-
5,860
4,690
92
4,782
-
(138)
(138)
380
633
7,271
2,714
1,998
1,896
(300)
214
878
109
1,649
687
-
(253)
-
4,557
73
175
5
(509)
8
777
17
979
471
473
1
(1)
-
-
-
-
21,989
5,175
15,474
55,876
6,867
2,738
18,712
8,087
-
5,996
1,226
10,206
20,811
4,599
1,268
1,942
1,574
-
4,220
-
721
4,610
- (15,907)
1,406
-
61
(669)
105
-
66
238
(504)
-
-
83,545
-
83,545
21,061
9,093
205
12,173
(307)
4,977
2,238
(17,386)
(8,259)
1,34,918
24,753
6,889
2,652
13,256
1,154
1,83,622
47,622
2,885
59,187
188
1,993
1,11,875
11,430
(17,080)
* EBITDA is a non-GAAP measure.
** Amortisation of duty benefits relating to assets recognised as government grant.
*** Total of capital expenditure includes capital expenditure of `2 crores which is not allocable to any segment. It also includes `354 crores
acquired through business combination.
* EBITDA is a non-GAAP measure.
** Amortisation of duty benefits relating to assets recognised as government grant.
*** Total of capital expenditure includes capital expenditure of `3 crores which is not allocable to any segment. It also includes acquisition
through business combination.
416
417
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements B) Geographical segment analysis
The following table provides an analysis of the Group’s sales by region in which the customer is located, irrespective of
the origin of the goods.
Geographical Segments
Revenue by geographical segment
India
China
UAE
Malaysia
Others
Total
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
53,621
5,221
698
7,109
20,214
86,863
54,226
2,694
820
7,648
18,157
83,545
The following is an analysis of the carrying amount of non-current assets, excluding deferred tax assets and financial
assets, analysed by the geographical area in which the assets are located:
Geographical Segments
Carrying amount of non-current assets
India
South Africa
Namibia
Taiwan
Other
Total
As at
31 March 2021
1,05,615
4,449
887
1,002
789
1,12,742
(` in crores)
As at
31 March 2020
1,06,844
3,723
750
1,162
985
1,13,464
Information about major customer
C)
Revenue from one customer amounted to `10,477 crores for the year ended 31 March 2021 (31 March 2020: No
customer), arising from sales made in the Aluminium, Zinc and Copper segment. No other customer contributed to
more than 10% of revenues.
D) Disaggregation of Revenue
Below table summarises the disaggregated revenue from contracts with customers:
Particulars
Oil
Gas
Zinc Metal
Lead Metal
Silver Metals and bars
Iron Ore
Metallurgical coke
Pig Iron
Copper products
Aluminium products
Power
Steel products
Ferro Alloys
Others
Revenue from contracts with customers*
Revenue from contingent rents
Loss on provisionally priced contracts under Ind AS 109
JV partner’s share of the exploration costs approved under the OM (Refer note 25)
Total revenue
Year ended
31 March 2021
6,480
684
16,634
3,880
4,395
2,173
257
2,425
10,205
28,394
3,651
3,966
274
2,126
85,544
1,515
(196)
-
86,863
(` in crores)
Year ended
31 March 2020
10,906
795
15,756
3,470
2,476
1,482
55
2,239
7,349
25,429
4,406
3,785
-
3,748
81,896
1,673
(1,300)
1,276
83,545
*includes revenues from sale of services aggregating to `224 crores (FY2019-20: `216 crores) which is recorded over a period of time. The
balance revenue from contracts with customers is recognised at a point in time.
418
< BACK TO CONTENTS
)
s
e
r
o
r
c
n
i
`
(
s
s
e
r
g
o
r
p
-
n
i
-
k
r
o
w
l
a
t
i
p
a
c
g
n
i
d
u
l
c
n
i
l
a
t
o
T
n
o
i
t
a
r
o
l
p
x
E
d
n
a
e
l
b
i
g
n
a
t
n
i
r
e
d
n
u
s
t
e
s
s
a
t
n
e
m
p
o
l
e
v
e
d
t
n
e
m
p
o
l
e
v
e
d
I
)
P
W
C
(
n
o
i
t
a
r
o
l
p
x
E
l
a
t
i
p
a
C
e
l
b
i
g
n
a
t
n
i
-
n
i
-
k
r
o
w
r
e
d
n
u
s
t
e
s
s
a
s
s
e
r
g
o
r
p
l
a
t
o
T
f
o
t
h
g
i
R
e
c
ffi
O
s
t
e
s
s
a
e
s
U
t
n
e
m
p
i
u
q
e
s
e
l
c
i
h
e
V
e
r
u
t
i
n
r
u
F
s
e
r
u
t
x
fi
d
n
a
s
a
g
&
l
i
O
s
e
i
t
i
l
i
c
a
f
g
n
i
c
u
d
o
r
p
g
n
i
i
n
M
d
n
a
t
n
a
l
P
y
t
r
e
p
o
r
p
t
n
e
m
p
i
u
q
e
s
g
n
i
d
l
i
u
B
d
n
a
L
d
l
o
h
e
e
r
F
T
N
E
M
P
O
L
E
V
E
D
R
E
D
N
U
S
T
E
S
S
A
E
L
B
G
N
A
T
N
I
I
I
N
O
T
A
R
O
L
P
X
E
D
N
A
S
S
E
R
G
O
R
P
-
N
I
-
K
R
O
W
L
A
T
P
A
C
I
,
S
T
E
S
S
A
E
L
B
G
N
A
T
N
I
I
,
I
T
N
E
M
P
U
Q
E
D
N
A
T
N
A
L
P
,
Y
T
R
E
P
O
R
P
6
s
r
a
l
u
c
i
t
r
a
P
-
-
-
-
-
-
9
6
5
1
,
7
5
8
7
,
3
8
1
5
,
9
5
2
2
2
,
-
3
6
0
9
,
)
2
6
4
(
8
5
4
7
,
,
1
7
6
7
1
1
,
,
7
8
5
5
6
2
,
3
3
1
6
5
5
8
8
1
1
,
)
7
8
3
(
)
5
1
2
1
(
,
)
3
(
4
3
1
3
0
5
6
,
3
8
5
0
1
,
4
4
0
,
7
8
,
2
)
4
(
)
7
(
)
0
3
6
(
)
4
8
6
1
(
,
6
5
3
,
1
9
,
2
,
3
1
1
5
4
1
,
-
3
6
0
9
,
)
2
6
4
(
4
8
8
6
1
,
0
1
6
7
,
)
9
7
4
(
4
4
2
-
9
3
8
9
,
7
3
4
,
0
8
,
1
-
)
9
9
1
2
(
,
3
1
6
,
5
8
,
1
,
4
7
4
0
2
1
,
,
7
0
6
6
0
1
,
3
4
7
,
5
0
,
1
-
9
0
5
-
8
1
)
4
8
(
)
3
(
3
6
6
6
0
9
7
,
3
2
7
9
0
0
,
9
-
8
-
)
7
(
)
5
8
1
(
8
4
5
,
9
-
-
-
-
-
9
0
5
1
6
2
,
7
)
7
4
1
(
4
1
1
,
7
3
2
7
2
,
8
4
7
1
,
4
3
4
,
2
-
)
3
(
-
-
-
0
0
8
5
,
5
9
4
4
4
,
3
3
1
6
5
6
7
5
5
,
,
6
8
1
3
1
2
,
)
2
1
8
3
(
,
7
0
4
3
,
-
-
-
7
7
5
1
2
0
1
,
)
8
2
1
1
(
,
)
4
2
2
(
8
8
5
2
,
2
3
3
7
,
-
-
2
0
7
2
2
,
)
5
6
4
5
(
,
2
3
1
0
1
5
3
,
-
3
5
4
5
,
)
0
3
6
(
)
5
4
6
(
)
4
5
8
(
-
7
0
1
-
)
3
(
3
5
2
)
7
1
(
8
6
0
,
9
4
7
6
9
,
8
2
,
2
0
2
4
,
1
-
6
4
-
1
3
8
3
2
1
-
0
1
)
8
(
-
8
1
-
5
9
4
7
9
0
1
)
8
(
-
7
-
-
1
4
6
2
-
)
2
2
(
)
0
1
(
4
9
3
-
7
2
)
2
3
(
)
1
2
(
-
8
0
3
2
,
5
4
8
7
5
,
6
3
,
2
0
6
7
,
1
8
7
0
,
1
6
7
3
4
4
2
-
-
-
0
1
6
7
,
)
9
7
4
(
-
-
5
1
1
2
,
5
1
2
7
,
1
3
2
,
2
3
5
4
9
,
0
4
,
1
)
8
1
5
(
)
7
0
6
(
8
1
5
)
5
4
4
1
(
,
)
3
(
0
5
3
,
1
3
9
4
1
,
7
4
,
1
3
2
3
6
3
2
2
2
,
7
3
8
6
1
,
0
8
8
,
3
1
5
1
5
5
9
,
2
2
0
8
8
,
9
2
4
,
9
8
-
7
8
2
1
,
7
3
4
,
1
-
1
3
3
1
)
8
2
(
2
2
-
5
3
3
1
4
9
1
)
1
(
-
-
7
3
6
-
)
7
(
6
1
1
-
-
0
2
6
6
7
2
2
1
)
5
(
-
-
5
8
8
8
4
9
1
8
0
2
0
9
1
7
8
-
7
3
-
)
6
1
(
6
)
6
(
8
3
8
0
1
)
7
1
(
-
5
)
7
(
7
2
1
2
7
2
6
8
2
9
4
2
-
2
1
-
2
)
4
(
-
6
1
-
0
4
0
1
4
1
2
)
0
1
(
-
)
5
(
6
5
4
-
6
4
)
3
(
3
7
2
-
-
4
1
0
3
3
2
3
)
9
(
-
-
)
5
(
8
4
3
0
8
1
1
1
8
0
1
-
-
6
8
1
-
)
4
1
(
0
0
4
1
,
2
1
8
6
,
8
1
8
,
0
9
-
-
-
)
7
(
9
0
0
1
,
)
2
5
8
1
(
,
8
6
9
,
9
8
-
1
9
4
1
,
-
-
3
9
6
)
6
2
1
(
-
)
6
2
5
(
1
0
3
1
,
9
6
2
,
4
1
)
5
(
7
5
4
-
7
4
7
4
1
)
6
1
(
5
3
3
2
,
5
4
5
1
,
)
4
2
7
(
-
3
7
7
-
7
5
3
7
1
6
)
6
(
-
5
7
1
-
0
1
2
1
-
-
8
2
)
0
3
3
(
0
8
7
,
3
0
,
1
4
2
6
,
4
1
8
7
2
,
2
-
0
8
7
1
,
2
8
8
3
,
)
3
4
5
(
-
4
3
2
-
3
5
1
5
0
1
)
3
1
(
-
1
3
7
2
3
1
-
)
7
(
)
0
2
(
)
2
5
2
(
9
6
7
,
6
1
3
3
1
,
9
0
,
1
0
0
9
,
4
1
8
3
1
,
2
4
6
3
2
7
,
7
6
6
6
,
8
0
8
1
3
,
3
1
5
5
,
-
-
9
5
3
2
,
4
3
6
1
,
-
2
1
9
6
,
-
)
7
(
2
7
7
-
6
0
4
6
,
1
4
0
,
8
8
0
9
4
)
6
9
7
1
(
,
0
0
5
,
7
8
7
7
7
2
,
8
6
4
,
2
0
7
0
0
1
,
-
-
-
)
6
1
2
(
5
8
0
,
8
6
1
5
1
,
-
-
-
5
3
3
6
3
9
,
9
0
7
0
6
,
4
8
1
6
,
3
3
8
,
6
)
1
(
1
8
1
4
,
)
7
0
4
(
7
0
5
)
6
(
5
0
8
5
9
3
4
,
)
8
1
4
(
7
8
8
,
6
3
-
5
3
5
2
4
2
9
,
0
4
5
4
0
8
6
,
3
9
8
6
6
,
9
0
2
,
8
6
-
)
1
(
7
1
7
4
5
-
6
6
1
2
4
2
,
6
5
3
5
)
3
1
(
-
-
)
6
(
8
5
7
,
6
7
1
5
8
,
2
8
3
8
,
2
4
1
,
8
-
0
1
2
2
3
-
-
-
1
2
3
5
3
6
)
9
(
-
-
)
5
(
5
4
3
6
3
2
2
,
5
2
9
1
,
3
9
7
,
1
9
5
3
4
8
3
4
3
4
2
8
,
7
3
7
2
1
,
3
5
8
9
9
,
0
3
0
4
1
,
8
5
5
2
,
t
n
e
m
p
i
u
q
e
&
t
n
a
P
l
,
y
t
r
e
p
o
r
P
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
l
k
c
o
B
s
s
o
r
G
9
1
0
2
l
i
r
p
A
1
0
t
a
s
a
s
t
e
s
s
A
U
O
R
s
n
o
i
t
i
d
d
A
i
i
n
o
i
t
a
n
b
m
o
c
s
s
e
n
s
u
b
h
g
u
o
r
h
t
n
o
i
t
i
s
u
q
c
A
i
n
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
)
3
3
e
t
o
n
r
e
f
e
R
(
t
s
o
c
n
o
i
t
a
r
o
p
x
E
l
l
u
f
s
s
e
c
c
u
s
n
U
i
i
n
o
i
t
a
n
b
m
o
c
s
s
e
n
s
u
b
h
g
u
o
r
h
t
n
o
i
t
i
s
u
q
c
A
i
l
i
s
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
)
)
a
(
4
e
t
o
n
r
e
f
e
R
(
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
s
n
o
i
t
i
d
d
A
)
3
3
e
t
o
n
r
e
f
e
R
(
t
s
o
c
n
o
i
t
a
r
o
p
x
E
l
l
u
f
s
s
e
c
c
u
s
n
U
,
n
o
i
t
e
l
p
e
d
,
n
o
i
t
a
i
c
e
r
p
e
d
d
e
t
a
l
u
m
u
c
c
A
t
n
e
m
r
i
a
p
m
i
d
n
a
n
o
i
t
a
s
i
t
r
o
m
a
9
1
0
2
l
i
r
p
A
1
0
t
a
s
a
s
t
e
s
s
A
U
O
R
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
C
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
r
a
e
y
e
h
t
r
o
f
)
l
a
s
r
e
v
e
r
(
/
e
g
r
a
h
c
t
n
e
m
r
i
a
p
m
I
)
4
3
e
t
o
n
r
e
f
e
R
(
l
i
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
C
j
s
t
n
e
m
t
s
u
d
A
/
s
a
s
o
p
s
D
i
l
)
4
3
e
t
o
n
r
e
f
e
R
(
r
a
e
y
e
h
t
r
o
f
e
g
r
a
h
c
t
n
e
m
r
i
a
p
m
I
/
ff
o
n
e
t
t
i
r
w
s
s
e
r
g
o
r
p
-
n
i
-
k
r
o
w
l
a
t
i
p
a
C
l
i
n
o
i
t
a
c
fi
s
s
a
c
e
R
/
s
r
e
f
s
n
a
r
T
t
n
u
o
m
A
g
n
i
y
r
r
a
C
/
e
u
l
a
V
k
o
o
B
t
e
N
i
s
e
c
n
e
r
e
ff
d
e
g
n
a
h
c
x
E
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
9
1
0
2
l
i
r
p
A
1
0
t
a
s
A
419
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
6
RIGHT OF USE (ROU) ASSETS
Gross Block
As at 01 April 2019
ROU Assets as at 01 April 2019
Additions
Disposals/Adjustments
Exchange differences
As at 31 March 2020
Additions
Transfers/Reclassification
Disposals/Adjustments
Exchange differences
As at 31 March 2021
Accumulated depreciation & impairment
As at 01 April 2019
ROU Assets as at 01 April 2019
Charge for the year
Disposals/Adjustments
Impairment charge/(reversal) for the year
Exchange differences
As at 31 March 2020
ROU Assets as at 01 April 2019
Charge for the year
Disposals/Adjustments
Exchange differences
As at 31 March 2021
Net Book Value
As at 01 April 2019
As at 31 March 2020
As at 31 March 2021
ROU Land
ROU Building
ROU Plant and
Equipment
-
311
302
-
9
622
91
253
-
(4)
962
-
51
-
22
1
74
48
-
(2)
120
-
548
842
-
239
40
(224)
9
64
-
-
(2)
(1)
61
-
42
(28)
-
2
16
14
(1)
-
29
-
48
32
-
27
679
-
28
734
16
-
(1)
(12)
737
1
40
-
-
2
43
132
0
(1)
174
-
691
563
Particulars
Software
License
Right to use*
Mining Rights
Port
concession
rights
(refer note k)
Brand &
Technological
know-how
Intangible assets
Gross Block
As at 01 April 2019
Additions
Transfers from Property, Plant and
Equipment
Disposals/Adjustments
Exchange differences
As at 31 March 2020
Additions
Acquisition through business
combination (Refer note 4(a))
Transfers from Property, Plant and
Equipment
420
342
21
1
-
15
379
9
-
4
69
6
37
-
-
112
32
-
-
381
-
-
-
-
381
-
220
-
678
6
-
(1)
-
683
1
-
-
224
-
-
-
23
247
-
-
-
Total
-
577
1,021
(224)
46
1,420
107
253
(3)
(17)
1,760
1
133
(28)
22
5
133
194
(1)
(3)
323
-
1,287
1,437
(` in crores)
Total
1,694
33
38
(1)
38
1,802
42
220
4
< BACK TO CONTENTS
Particulars
Software
License
Right to use*
Mining Rights
Port
concession
rights
(refer note k)
Brand &
Technological
know-how
Disposals/Adjustments
Exchange differences
As at 31 March 2021
Accumulated amortisation and
impairment
As at 01 April 2019
Charge for the year
Disposals/Adjustments
Transfers from Property, Plant and
Equipment
Exchange differences
As at 31 March 2020
Charge for the year
Disposals/Adjustments
Transfers from Property, Plant and
Equipment
Exchange differences
As at 31 March 2021
Net Book Value/Carrying
Amount
As at 01 April 2019
As at 31 March 2020
As at 31 March 2021
*Corporate social responsibility asset.
(6)
(2)
384
302
32
-
0
15
349
16
(6)
-
(4)
355
40
30
29
-
-
144
14
5
-
-
-
19
6
-
-
-
25
55
93
119
-
-
601
324
4
-
-
-
328
32
-
-
-
360
57
53
241
-
-
684
145
25
-
-
-
170
25
-
-
-
195
533
513
489
-
(11)
236
27
23
-
-
4
54
23
-
-
(4)
73
197
193
163
(` in crores)
Total
(6)
(13)
2,049
812
89
-
0
19
920
102
(6)
-
(8)
1,008
882
882
1,041
a)
b)
c)
d)
e)
Plant and equipment include refineries, smelters,
power plants, railway sidings, ships, aircrafts, river
fleets and related facilities.
f)
During the year ended 31 March 2021, interest
capitalised was `316 crores (31 March 2020: `1,017
crores).
Freehold land includes `289 crores (31 March 2020:
`293 crores), accumulated depreciation `255 crores
(31 March 2020: `254 crores), which is available for
use during the lifetime of the Production Sharing
Contract of the respective Oil and Gas blocks and
title deed for the same is in the name of the licensee
of the block.
Certain property, plant and equipment are pledged
as collateral against borrowings, the details
related to which have been described in Note 19 on
“Borrowings”.
Freehold land includes 40 quarters at Bidhan
Bagh Unit and 300.88 acres of land at Korba and
Bidhan Bagh which have been occupied without
authorisation for which Group is evaluating
evacuation options and the Group has filed the civil
suits for the same.
g)
The land transferred to BALCO by National Thermal
Power Corporation Ltd. (NTPC) vide agreement
dated 20 June 2002 comprising of 171.44 acres
land for BALCO’s 270 MW captive power plant and
its allied facilities and 34.74 acres land for staff
quarters of the said captive power plant is yet to be
registered in favour of BALCO due to non-availability
of title deeds from NTPC. The arbitration is pending
between Balco and NTPC (presently in appeal before
Delhi High Court), in which transfer of title deeds is
also sub-judice and is posted for hearing on
27 July 2021.
The Division Bench of the Hon’ble High Court of
Chhattisgarh has vide its order dated 25 February
2010, upheld that BALCO is in legal possession of
1,804.67 acres of Government land. Subsequent to
the said order, the State Government has decided
to issue the lease deed in favour of BALCO after
the issue of forest land is decided by the Hon’ble
Supreme Court. In the proceedings before the
Hon’ble Supreme Court, pursuant to public interest
litigations filed, it has been alleged that land in
possession of BALCO is being used in contravention
of the Forest Conservation Act, 1980 even though
the said land has been in its possession prior to the
421
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
i)
promulgation of the Forest Conservation Act, 1980
on which its Aluminium complex, allied facilities and
township were constructed between 1971-76. The
Central Empowered Committee of the Supreme
Court has already recommended ex-post facto
diversion of the forest land in possession of BALCO.
BALCO has also filed two IA before the Supreme
Court, 1st challenging the order of the Tehsildar
Korba whereby he rejected BALCO’S applications for
eviction of illegal encroachers on BALCO’S land on
the ground that land matter is subjudice before the
Supreme Court and the other application whereby
BALCO has challenged the state government’s
action for allotment of land to illegal encroachers
under the Rajiv Ashray Yojna. No next date is there
and the matter is to be listed in due course.
h)
Property, Plant and Equipment, Capital work-in-
progress and exploration and evaluation assets net
block includes share of jointly owned assets with
the joint venture partners `11,327 crores (31 March
2020: `11,154 crores).
In accordance with the exemption given under
Ind AS 101, which has been exercised by the Group,
a first time adopter can continue its previous GAAP
policy for accounting for exchange differences
arising from translation of long-term foreign
currency monetary items recognised in the previous
GAAP financial statements for the period ending
immediately before the beginning of the first Ind AS
financial reporting period, i.e. 01 April 2016.
Accordingly, foreign currency exchange loss arising
on translation/settlement of long-term foreign
currency monetary items acquired before 01 April
2016 pertaining to the acquisition of a depreciable
asset amounting to `56 crores (31 March 2020: `65
crores) are adjusted to the cost of respective item of
property, plant and equipment.
j)
Reconciliation of depreciation, depletion and amortisation expense
Particulars
Depreciation/ Depletion/ Amortisation expense on:
Property, Plant and equipment
Intangible assets
As per Property, Plant and Equipment and Intangibles schedule
Less: Depreciation capitalised
Less: Cost allocated to joint ventures
As per Consolidated Statement of Profit and Loss
For the year ended
31 March 2021
(` in crores)
For the year ended
31 March 2020
7,610
102
7,712
(50)
(24)
7,638
9,063
89
9,152
-
(59)
9,093
Vizag General Cargo Berth Private Limited (VGCB),
a special purpose vehicle and wholly-owned by
the Company, was incorporated for the coal berth
mechanisation and upgradation at Visakhapatnam
port. The project was to be carried out on a design,
build, finance, operate, transfer basis and the
concession agreement between Visakhapatnam
Port Trust (‘VPT’) and the Company was signed
in June 2010. In October 2010, the Company
was awarded with the concession after fulfilling
conditions stipulated as a precedent to the
concession agreement. Visakhapatnam port trust
has provided, in lieu of license fee an exclusive
license to the Company for designing, engineering,
financing, constructing, equipping, operating,
maintaining, and replacing the project/project
facilities and services. The concession period is 30
years from the date of the award. The upgraded
capacity is 10.18 mmtpa and the Visakhapatnam
port trust would be entitled to receive 38.10%
share of the gross revenue as royalty. The Company
is entitled to recover a tariff from the user(s) of
the project facilities and services as per its Tariff
Authority for Major Ports(TAMP) notification.
The tariff rates are linked to the Wholesale Price
Index (WPI) and would accordingly be adjusted as
specified in the concession agreement every year.
The ownership of all infrastructure assets, buildings,
structures, berths, wharfs, equipment and other
immovable and movable assets constructed,
installed, located, created or provided by the
Company at the project site and/or in the port’s
assets pursuant to concession agreement would
be with the Company until expiry of this concession
agreement. The cost of any repair, replacement or
restoration of the project facilities and services shall
be borne by the Company during the concession
period. The Company has to transfer all its rights,
titles and interest in the project facilities and
services free of cost to VPT at the end of the
concession period. Intangible asset port concession
rights represents consideration for construction
k)
422
< BACK TO CONTENTS
services. No Revenue from construction contract
of service concession arrangments on exchanging
construction services for the port concession rights
was recognised for the year ended 31 March 2021
and 31 March 2020.
l)
Title deed of freehold land of 264 acres relating to
ESL Steel Limited was not available with the Group
up to previous year. During the year the Group has
got it regularised.
n)
m)
As at 31 March 2021, TSPL’s assets consisting of
land (including ROU land), building and plant and
machinery having net carrying value of `394 crores
(31 March 2020: `397 crores), `183 crores (31 March
2020: `200 crores) and `9,026 crores (31 March
2020: `9,435 crores) respectively have been given on
operating lease (Refer note 3(c)(B)(i)).
A parcel of land aggregating to `349 croress relating
to Iron Ore business was reclassified during the
previous year, due to existence of litigation, to
Financial Assets and later impaired (Refer note 33)
and `4 crores transferred to intangible assets from
CWIP (31 March 2020: `38 croress).
7
FINANCIAL ASSETS – INVESTMENTS
A) Non-current Investments
Particulars
(I)
Investments at fair value through other comprehensive income
Investment in Equity Shares – Quoted
Sterlite Technologies Limited – 47,64,295 shares of `2 each (including 60 shares held
jointly with nominees)
Investment in Equity Shares – unquoted
Sterlite Power Transmission Limited – 9,52,859 equity shares of `2 each (including 12
shares held jointly with nominees)
Other Investments
(II) Investments at fair value through profit and loss
Investment in Bonds – Quoted – Infrastructure Leasing & Financial Services Limited
(III)Investment in Equity Shares (fully paid)
Associate Companies – Unquoted
Gaurav Overseas Private Limited – 3,23,000 equity shares of `10 each
RoshSkor Township (Proprietary) Limited – 50 equity shares of NAD 1 each
Rampia Coal Mines and Energy Private Limited – 2,72,29,539 equity shares of `1 each
Raykal Aluminium Company Private Limited – 12,250 shares of `10 each
Joint ventures – Unquoted
Madanpur South Coal Company Limited – 1,14,421 equity shares of `10 each
Goa Maritime Private Limited – 5,000 equity shares of `10 each
Rosh Pinah Health Care (Proprietary) Limited – 69 equity shares of NAD 1 each
Gergarub Exploration and Mining (Pty) Limited – 51 equity shares of NAD 1 each
Less: Impairment in the value of investment in joint ventures
Total
a)
Particulars
Aggregate amount of quoted investments, and market value thereof
Aggregate amount of unquoted investments
Aggregate amount of impairment in the value of investments
Total
As at
31 March 2021
(` in crores)
As at
31 March 2020
92
11
0
51
0
2
3
0
2
0
0
0
(5)
156
30
11
0
51
0
3
3
0
2
0
0
0
(5)
95
As at
31 March 2021
143
18
(5)
156
(` in crores)
As at
31 March 2020
81
19
(5)
95
423
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
B) Current Investments
Particulars
Investments carried at fair value through profit and loss (fully paid)
Investment in mutual funds – quoted
Investment in mutual funds – unquoted
Investment in bonds – quotedb
Investment in India Grid trust – quotedb
Total
a)
Particulars
Aggregate amount of quoted investments, and market value thereof
Aggregate amount of unquoted investments
Total
b)
Investment in related parties are sold during the year. Refer note 40(J).
8
FINANCIAL ASSETS – TRADE RECEIVABLES
As at
31 March 2021
(` in crores)
As at
31 March 2020
5,419
6,318
4,767
0
16,504
As at
31 March 2021
10,186
6,318
16,504
5,149
7,597
11,911
1
24,658
(` in crores)
As at
31 March 2020
17,061
7,597
24,658
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
3,799
(641)
3,515
(24)
7,314
(665)
3,658
(547)
2,720
(23)
(` in crores)
Total
6,378
(570)
Particulars
Unsecured
Less: Provision for expected
credit loss
Total
a) The credit period given to customer is up to 180 days. Also refer note 22(C)(d).
For amount due and terms and conditions of related party receivables refer note 40.
In July 2017, the Appellate Tribunal for Electricity dismissed the appeal filed by one of the Group’s subsidiaries,
Talwandi Sabo Power Limited (TSPL) with respect to the interpretation of how the calorific value of coal and
costs associated with it should be determined. However, APTEL had allowed payment of shunting and unloading
charges. TSPL filed an appeal before the Honourable Supreme Court (SC), which by an order dated March 07, 2018
has decided the matter in favour of TSPL. Consequently, PSPCL has paid majority of the dues. The outstanding
dues (included in trade receivables) and interest receivable in relation to this dispute as at 31 March 2021 is
`17 crores (31 March 2020: `247 crores) and `65 crores (31 March 2020: `139 crores) respectively.
In another matter relating to assessment of whether there has been a change in law following the execution of
the Power Purchase Agreement, the Appellate Tribunal for Electricity has dismissed the appeal in July 2017 filed
by TSPL. TSPL filed an appeal before the Honourable Supreme Court to seek relief which is yet to be listed. The
outstanding trade receivables in relation to this dispute and other matters is `1,605 crores as at 31 March 2021 (31
March 2020: `1,298 crores). The Group, based on external legal opinion and its own assessment of the merits of
the case, remains confident that it is highly probable that the Supreme court will uphold TSPL’s appeal and has thus
continued to treat these balances as recoverable.
Additionally, as at 31 March 2021, trade receivables amounting to `1,323 crores (31 March 2020: `1,349 crores)
withheld by GRIDCO (‘GRIDCO’ or ‘the Customer’) on account of certain disputes relating to computation of
power tariffs pending adjudication by Appellate Tribunal for Electricity (APTEL), which the Company is confident
of recovering fully. The Customer has also raised claims of `413 crores on the Company in respect of short supply
of power for which a provision of `218 crores has been made. Various minutes of meetings were signed with the
Customer for computing the short supply claims, which were subject to approval of Odisha State Electricity
b)
c)
424
3,158
3,491
6,649
3,111
2,697
5,808
10 FINANCIAL ASSETS – OTHERS
< BACK TO CONTENTS
Regulatory Commission (‘OERC’). On 22 June 2020 OERC pronounced its order on computation methodology for
short supply claims, basis which both the parties had to recompute the amount of claim and settle the matter in
two months from the date of the order. On initial impact assessment of the said Order by the Company, it believes
that no further provisioning is required in this regard.
Further, the Company filed an appeal before APTEL against the OERC Order. The matter is now listed before
registrar court on 14 July 2021. The Customer has also sought review of the OERC Order. The matter has been
posted for order by OERC in due course. In the meanwhile, power supply to GRIDCO has resumed and GRIDCO has
been making regular payments against monthly energy invoices.
d) The total trade receivables as at 01 April 2019 were `7,670 crores (net of provision for expected credit loss).
9
FINANCIAL ASSETS – LOANS
Particulars
Unsecured, considered good
Loans to related parties
(Refer note 40)
Loans and advances to employees
Security Deposit
Unsecured, considered credit
impaired
Loans to related parties
(Refer note 40(N))
Less: Provision for expected credit loss
Total
Particulars
Bank deposits a,b
Site Restoration asset b
Unsecured, considered good
Receivables from related parties
(Refer note 40)
Security deposits
Others
Advance recoverable (oil and gas
business)
Others (Refer note 25(b))
Unsecured, considered credit impaired
Security deposits
Balance with government authorities
Receivables from related parties (Refer
note 40(N))
Others c
Less: Provision for expected credit loss
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Total
(` in crores)
5,056
2,015
7,071
1
12
4
-
-
78
5
12
78
-
5,069
(78)
2,019
(78)
7,088
4
1
12
-
-
17
80
5
-
-
-
85
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
115
822
-
169
-
-
101
16
115
822
101
185
754
617
-
157
-
-
115
28
84
6
12
-
-
102
(` in crores)
Total
754
617
115
185
-
3,908
3,908
-
1,371
1,371
1,414
220
1,634
995
892
1,887
42
-
-
558
(600)
2,520
1
3
20
396
(420)
4,245
43
3
20
954
(1,020)
6,765
42
-
-
444
(486)
2,523
1
2
-
477
(480)
2,406
43
2
-
921
(966)
4,929
a)
Bank deposits includes fixed deposit with maturity more than twelve months of `30 crores (31 March 2020: `25 crores) under lien
with bank, `5 crores (31 March 2020: Nil) fixed deposit under lien with Others, `21 crores (31 March 2020: Nil) reserve created against
principal payment on loans from banks and margin money of `4 crores (31 March 2020: `5 crores).
425
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
b)
c)
Bank deposits and site restoration asset earns interest at fixed rate based on respective deposit rate.
A parcel of land amounting to `349 crores relating to Iron Ore business has been reclassified during the previous year, due to existing
litigation, from Property, plant and equipment and was later provided for (Refer note 34(d)).
13 CASH AND CASH EQUIVALENTS
11 OTHER ASSETS
Particulars
Unsecured, considered good
Capital advances
Advances other than capital advances
Security deposits
Advances to related party
(Refer note 40)
Advances for supplies
Others
Balance with government authorities a
Others b
Unsecured, considered doubtful
Capital advances c
Advance for supplies
Balance with government authorities
Others b
Less: Provision for doubtful advances
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Total
(` in crores)
1,186
-
1,186
1,230
0
94
-
610
1,320
220
-
3
799
(1,022)
3,210
-
227
0
321
1,221
1,221
729
1,127
-
51
5
5
(61)
3,304
1,339
2,447
220
51
8
804
(1,083)
6,514
0
-
-
553
1,547
208
-
3
602
(813)
3,330
-
-
21
1,230
0
21
1,400
1,400
976
741
-
48
-
5
(53)
3,138
1,529
2,288
208
48
3
607
(866)
6,468
a)
b)
c)
Includes `58 crores (31 March 2020: `58 crores), being Company’s share of gross amount of `86 crores (31 March 2020: `86 crores) paid
under protest on account of Education Cess and Secondary Higher Education Cess for the year ended 2013-14.
Others include claim receivables, advance recoverable (oil and gas business), prepaid expenses and export incentive receivables. This
also includes amounts receivable from KCM (Refer note 34(e)).
During the previous year, an impairment charge of `196 crores has been recognised relating to copper business (Refer note 34(c)).
12
INVENTORIES
Particulars
Raw materials
Goods-in transit
Work-in-progress
Goods-in transit
Finished good
Goods-in transit
Fuel stock
Goods-in transit
Stores and spares
Goods-in transit
Total
As at
31 March 2021
2,070
1,303
3,012
1
823
32
798
190
1,668
26
9,923
(` in crores)
As at
31 March 2020
2,013
1,010
3,319
4
1,222
48
1,386
352
1,955
26
11,335
a)
b)
c)
Inventory held at net realisable value `2,399 crores (31 March 2020: `2,358 crores) as at 31 March 2021.
The write down of inventories amounting to `159 crores (31 March 2020: `118 crores) has been charged to the consolidated statement
of profit and loss during the year.
For method of valuation for each class of inventories, refer Note 3(a)(L).
Particulars
Balances with banks
Bank deposits with original maturity of less than 3 months (including interest accrued
thereon) a,b
Cash on Hand
Total
As at
31 March 2021
2,661
2,193
(` in crores)
As at
31 March 2020
2,392
2,725
0
4,854
0
5,117
a)
b)
Bank deposits include restricted funds of Nil (31 March 2020: `57 crores) held as collateral in respect of closure costs.
Bank deposits earns interest at fixed rate based on respective deposit rate.
14 OTHER BANK BALANCES
Particulars
Bank deposits with original maturity of more than 3 months but less than 12 months
(including interest accrued thereon) a,b
Bank deposits with original maturity of more than 12 months (including interest accrued
thereon) c
Earmarked unpaid dividend accounts e
Earmarked escrow account f
Total
As at
31 March 2021
11,212
461
100
2
11,775
(` in crores)
As at
31 March 2020
7,249
40
94
2
7,385
a)
b)
c)
d)
e)
f)
The above bank deposits includes `657 crores (31 March 2020: `256 crores) on lien with banks and margin money of `272 crores (31
March 2020: `99 crores).
Restricted funds of `460 crores (31 March 2020: Nil ) held as interest reserve created against interest payment on loans from banks,
`46 crores (31 March 2020: `57 crores) held as collateral in respect of closure costs and `21 crores (31 March 2020: Nil) held as lien with
Others.
Includes `1 crores (31 March 2020: `40 crores) margin money with banks.
Bank deposits earn interest at fixed rate based on respective deposit rate.
Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed dividends or unpaid dividend.
Earmarked escrow account includes amount restricted in use as it relates to unclaimed redeemable preference shares.
15 SHARE CAPITAL
Particulars
A) Authorised equity share capital
Opening and closing balance (equity shares of `1
each with voting rights)
Authorised preference share capital
Opening and closing balance (preference shares
of `10 each)
Issued , subscribed and paid up
Equity shares of `1 each with voting rights a.b
Total
B)
a)
b)
As at 31 March 2021
As at 31 March 2020
Number
(in crores)
Amount
(` in crores)
Number
(in crores)
Amount
(` in crores)
4,402
4,402
4,402
4,402
301
3,010
301
3,010
372
372
372
372
372
372
372
372
Includes 3,08,232 (31 March 2020: 3,08,232) equity shares kept in abeyance. These shares are not part of listed equity capital and
pending allotment as they are sub-judice.
Includes 1,21,93,159 (31 March 2020: 1,43,78,261 ) equity shares held by Vedanta Limited ESOS Trust (Refer Note 16).
426
427
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
C) Shares held by ultimate holding company and its subsidiaries/associates *
Particulars
Twin Star Holdings Limited
Twin Star Holdings Limited(2)
Finsider International Company Limited
Westglobe Limited
Welter Trading Limited
Vedanta Holdings Mauritius II Limited(3)
Total
As at 31 March 2021
As at 31 March 2020
No. of Shares held
(in crores)
137.94
-
40.15
4.43
3.82
18.50
204.84
% of holding
37.11
-
10.80
1.19
1.03
4.98
55.11
No. of Shares held
(in crores)
128.01
9.93
40.15
4.43
3.82
-
186.34
% of holding
34.44
2.67
10.80
1.19
1.03
-
50.13
* The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet date.
(1)
(2)
(3)
All the above entities are subsidiaries of Volcan Investments Limited, the ultimate holding company.
Represented by 2,48,23,177 American Depository Shares (“ADS”) which got coverted to equity shares in FY2020-21.
Vedanta Holdings Mauritius II Limited (part of Promoter Group of Vedanta Limited) had purchased 185,000,000 equity shares
aggregating to 4.98% of equity share capital of Vedanta Limited, on 24 December 2020 via bulk deal on stock exchange.
D)
Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought
back during the period of five years immediately preceding the reporting date
Particulars
Equity shares issued pursuant to Scheme of Amalgamation (in FY2017-18)
Preference shares issued pursuant to Scheme of Amalgamation (in FY2017-18)*
* These were redeemed on 27 October 2018.
E) Details of shareholders holding more than 5% shares in the Company *
As at
31 March 2021
75
301
(` in crores)
As at
31 March 2020
75
301
Particulars
Twin Star Holdings Limited
Twin Star Holdings Limited #
Finsider International Company Limited
ICICI Prudential Equity Arbitrage Fund
Life Insurance Corporation of India
As at 31 March 2021
As at 31 March 2020
No. of Shares held
(in crores)
137.94
-
40.15
8.32
24.40
% of holding
37.11
-
10.80
2.24
6.56
No. of Shares held
(in crores)
128.01
9.93
40.15
18.69
23.67
% of holding
34.44
2.67
10.80
5.03
6.37
# 2,48,23,177 ADS, held by CITI Bank N.A. New York as a depository which has been converted to equity shares in FY2020-21.
* The % of holding has been calculated on the issued and subscribed share capital as at respective balance sheet date.
As per the records of the Company, including its register of shareholders/members, the above shareholding represents legal ownership of
shares.
F) Other disclosures
i)
The Company has one class of equity shares having a
par value of `1 per share. Each shareholder is eligible
for one vote per share held and dividend as and when
declared by the Company. The dividend proposed
by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General
Meeting, except in case of interim dividend which is
paid as and when declared by the Board of Directors.
In the event of liquidation of the Company, the
holders of equity shares will be entitled to receive
any of the remaining assets of the Company,
after distribution of all preferential amounts, in
proportion to their shareholding.
ii)
ADS shareholders do not have right to attend
General meetings in person and also do not have
right to vote. They are represented by depository,
CITI Bank N.A. New York. As at 31 March 2021 –
16,09,03,244 equity shares were held in the form
of 4,02,25,811 ADS (31 March 2020: 26,17,80,208
equity shares were held in the form of 6,54,45,052
ADS).
< BACK TO CONTENTS
iii)
16
a)
b)
In terms of Scheme of Arrangement as approved
by the Hon’ble High Court of Judicature at Mumbai,
vide its order dated 19 April 2002, the erstwhile
Sterlite Industries (India) Limited (merged with
the Company during 2013-14) during 2002-2003
reduced its paid up share capital by `10 crores.
There are 2,01,296 equity shares (31 March 2020:
2,01,711 equity shares) of `1 each pending clearance
from NSDL. The Company has filed an application
in Hon’ble High Court of Mumbai to cancel these
shares, the final decision on which is pending.
Hon’ble High Court of Judicature at Mumbai, vide its
interim order dated 06 September 2002 restrained
any transaction with respect to subject shares.
OTHER EQUITY (REFER CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY)
General reserve: Under the erstwhile Companies
Act, 1956, a general reserve was created through
an annual transfer of net income at a specified
percentage in accordance with applicable
regulations. The purpose of these transfers was
to ensure that if a dividend distribution in a given
year is more than 10.0% of the paid-up capital of
the Company for that year, then the total dividend
distribution is less than the total distributable
reserves for that year. Consequent to introduction
of Companies Act, 2013, the requirement to
mandatory transfer a specified percentage of the
net profit to general reserve has been withdrawn.
Debenture redemption reserve: As per the
earlier provision under the Indian Companies Act,
companies that issue debentures were required
to create debenture redemption reserve from
annual profits until such debentures are redeemed.
Companies are required to maintain 25% as a
reserve of outstanding redeemable debentures.
The amounts credited to the debenture redemption
reserve may not be utilised except to redeem
debentures. The MCA vide its Notification dated 16
August 2019, had amended the Companies (Share
Capital and Debenture) Rules, 2014, wherein the
requirement of creation of Debenture Redemption
Reserve has been exempted for certain class of
companies, hence, in view of the same, Vedanta
Limited is not required to create Debenture
Redemption Reserve.
c)
Preference share redemption reserve: The
Companies Act, 2013 provides that companies that
issue preference shares may redeem those shares
from profits of the Company which otherwise
would be available for dividends, or from proceeds
of a new issue of shares made for the purpose of
redemption of the preference shares. If there is a
premium payable on redemption, the premium must
be provided for, either by reducing the additional
paid in capital (securities premium account) or net
income, before the shares are redeemed. If profits
are used to redeem preference shares, the value
of the nominal amount of shares redeemed should
be transferred from profits (retained earnings) to
the preference share redemption reserve. This
amount should then be utilised for the purpose of
redemption of redeemable preference shares. This
reserve can be used to issue fully paid-up bonus
shares to the shareholders of the Company.
d)
e)
f)
Capital reserve: The balance in capital reserve
has mainly arisen pursuant to extinguishment of
non-controlling interests of erstwhile Cairn India
Limited and acquisition of ASI. Further, changes in
capital reserve are due to recognition/derecognition
of put option liability and non-controlling interests
pertaining to ASI. Furthemore, acquisition of FACOR
Group during the year has also resulted in capital
reserves of `123 crores.
Legal reserve is created at Fujairah Gold FZC in
accordance with free zone regulations.
Treasury share represents 1,21,93,159 (31 March
2020: 1,43,78,261) equity shares (face value of `1
each) of the Company purchased by Vedanta Limited
ESOP Trust pursuant to the Company’s stock option
scheme as detailed in note 30.
17 NON-CONTROLLING INTERESTS (NCI)
The Non-controlling interests that are material to the
Group relate to Hindustan Zinc Limited (HZL) and Bharat
Aluminium Company Limited (“BALCO”).
As at 31 March 2021, NCIs hold an economic interest by
virtue of their shareholding of 35.08%, 49.00%, 26.00%,
48.37%, 4.51% and 10% in Hindustan Zinc Limited
(HZL), Bharat Aluminium Company Limited (BALCO),
Black Mountain Mining (BMM), Avanstrate Inc. (ASI),
Electrosteel Steels Limited (ESL) and Facor Power Limited
(FPL) respectively (Refer Note 4(a)). As at 31 March
2020, NCIs hold an economic interest by virtue of their
shareholding of 35.08%, 49.00%, 26.00% ,48.37% and
4.51% in HZL, BALCO, BMM, ASI and Electrosteel Steels
Limited (ESL) respectively.
The principal place of business of HZL, BALCO, ESL and
FPL is in India, that of BMM is in South Africa, that of
Avanstrate Inc. is in Japan, South Korea and Taiwan.
428
429
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
The table below shows summarised financial information of subsidiaries of the Group that have non-controlling
interests. The amounts are presented before inter-company elimination.
Particulars
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Equity attributable to owners of the Group
Non-controlling interests a
HZL
21,596
24,570
5,590
7,873
21,231
11,472
As at 31 March 2021
BALCO
12,376
2,875
3,854
5,425
3,046
2,926
a)
`534 crores loss attributable to NCI of ASI transferred to put option liability. Refer note 21.
Particulars
Non-current assets
Current assets
Non-current liabilities
Current liabilities
Equity attributable to owners of the Group
Non-controlling interests a
HZL
22,665
24,815
1,306
5,413
26,462
14,299
As at 31 March 2020
BALCO
12,617
2,724
4,201
6,229
2,505
2,406
a)
`397 crores loss attributable to NCI of ASI transferred to put option liability. Refer note 21.
Others
13,983
4,160
8,501
3,757
5,679
740
Others
9,963
3,389
7,380
3,155
2,807
407
Particulars
Total Income
Profit/(loss) after tax for the year
Profit/(loss) attributable to the equity shareholders of
the Company
Profit/(loss) attributable to the non-controlling
interests
Other comprehensive income during the year
Other comprehensive income attributable to the
equity shareholders of the Company
Other comprehensive income attributable to non-
controlling interests
Total comprehensive income during the year
Total comprehensive income attributable to the
equity shareholders of the Company
Total comprehensive income attributable to non-
controlling interests
Dividends paid/payable to non-controlling interests,
including dividend tax
Net cash inflow/(outflow) from operating activities
Net cash (outflow)/inflow from investing activities
Net cash (outflow)/inflow from financing activities
Net cash (outflow)/inflow
For the year ended 31 March 2021
HZL
24,452
7,918
5,140
2,778
(4)
(2)
(2)
7,914
5,138
2,776
5,603
10,579
(2,446)
(9,699)
(1,566)
BALCO
9,868
1,108
565
543
(46)
(23)
(23)
1,062
542
520
-
2,621
(1,030)
(1,646)
(55)
Others
8,287
3,378
3,269
109
402
284
118
3,781
3,553
227
-
766
225
(930)
61
(` in crores)
Total
47,955
31,605
17,945
17,055
29,956
15,138
(` in crores)
Total
45,245
30,928
12,887
14,797
31,774
17,112
(` in crores)
Total
42,607
12,404
8,974
3,430
352
259
93
12,757
9,233
3,523
5,603
13,966
(3,251)
(12,275)
(1,560)
< BACK TO CONTENTS
Particulars
Total Income
Profit after tax for the year
Profit attributable to the equity shareholders of the
Company
Profit attributable to the non-controlling interests
Other comprehensive income during the year
Other comprehensive income attributable to the
equity shareholders of the Company
Other comprehensive income attributable to
non-controlling interests
Total comprehensive income during the year
Total comprehensive income attributable to the
equity shareholders of the Company
Total comprehensive income attributable to
non-controlling interests
Dividends paid/payable to non-controlling interests,
including dividend tax
Net cash inflow from operating activities
Net cash outflow from investing activities
Net cash inflow/(outflow) from financing activities
Net cash (outflow)/inflow
HZL
20,499
6,771
4,396
2,375
(100)
(65)
(35)
6,671
4,331
2,340
-
6,957
(3,154)
(1,928)
1,875
For the year ended 31 March 2020
BALCO
8,926
(171)
(87)
(84)
4
2
2
(167)
(85)
(82)
-
155
(339)
13
(171)
Others
7,170
(846)
(475)
(371)
(299)
(209)
(90)
(1,145)
(684)
(461)
-
2,568
(3,000)
3
(429)
The effect of changes in ownership interests in subsidiaries that did not result in a loss of control is as follows:
Particulars
Changes in NCI
Particulars
Changes in NCI
HZL
-
HZL
-
For the year ended 31 March 2021
BALCO
-
Others
-
For the year ended 31 March 2020
BALCO
-
Others
(234)
Total
(234)
18 CAPITAL MANAGEMENT
The Group’s objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy
capital ratios in order to support its business and provide adequate return to shareholders through continuing growth.
The Group’s overall strategy remains unchanged from previous year.
The Group sets the amount of capital required on the basis of annual business and long-term operating plans which
include capital and other strategic investments.
The funding requirements are met through a mixture of equity, internal fund generation and borrowings. The Group’s
policy is to use current and non-current borrowings to meet anticipated funding requirements.
The Group monitors capital on the basis of the net gearing ratio which is Net debt/Total Capital (equity + net debt). The
Group is not subject to any externally imposed capital requirements.
Net debt are non-current and current debt as reduced by cash and cash equivalents, other bank balances and current
investments. Equity comprises all components including other comprehensive income.
(` in crores)
Total
36,595
5,754
3,834
1,920
(395)
(272)
(123)
5,359
3,562
1,797
-
9,680
(6,493)
(1,912)
1,275
(` in crores)
Total
-
(` in crores)
430
431
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
The following table summarises the capital of the Group:
B) Current borrowings
Particulars
Cash and cash equivalents a (Refer note 13)
Other bank balances a (including interest accrued)(Refer note 14)
Non-current Bank deposits a (Refer note 10)
Current investments (Refer note 7B)
Total cash (a)
Non-current borrowings (Note 19)
Current borrowings (Note 19)
Current maturities of long-term debt (Note 21)
Total borrowings (b)
Net debt (c=(b-a))
Total equity (d)
Total capital (e = equity + net debt)
Gearing ratio (times) (c/e)
(` in crores except otherwise stated)
As at
31 March 2020
5,060
7,289
754
24,658
37,761
36,724
13,076
9,387
59,187
21,426
71,747
93,173
0.23
As at
31 March 2021
4,854
11,146
110
16,504
32,614
37,962
3,715
15,351
57,028
24,414
77,416
1,01,830
0.24
a)
The constituents of ‘total cash’ for the purpose of capital management disclosure to include only those amounts
of restricted funds that are corresponding to liabilities (e.g. margin money deposits). Consequently, restricted
funds amounting to `153 crores (As at 31 March 2021: `635 crores) have been excluded from ‘total cash’ in the
capital management disclosures for the comparative year ended 31 March 2020. (Refer note 13(a), 14(b), 14(e) and
14(f)).
Particulars
At amortised cost
Secured
Working capital loan
Packing credit in foreign currencies from banks
Term loans from banks (Foreign currency)
Amounts due on factoring of receivables
Loans repayable on demand from banks
Others
Unsecured
Loans repayable on demand from banks
Commercial paper
Working capital loan
Amounts due on factoring of receivables
Others
Total
As at
31 March 2021
(` in crores)
As at
31 March 2020
349
350
-
-
-
106
298
2,162
318
27
105
3,715
513
-
1,041
14
1
1,884
1,077
7,524
918
16
88
13,076
In the event Vedanta Resources Limited ceases to be the Company’s majority shareholder, the Group
will be required to immediately repay some of its outstanding long-term debt.
a) Details of Non-convertible debentures issued by Group have been provided below (Carrying value) –
19 FINANCIAL LIABILITIES – BORROWINGS
A) Non-current borrowings
Particulars
At amortised cost
Secured
Non-convertible debentures
Term loans from banks
- Rupee term loans
- Foreign currency term loans
- External commercial borrowings
Others
Unsecured
Non-convertible debentures
Deferred sales tax liability
Non-convertible bonds
Term loans from banks
- Rupee term loans
- Foreign currency term loans
Redeemable preference shares
Non-current Borrowings (A)
Less: Current maturities of long-term debt (Refer note 21(b))
Total non-current Borrowings (Net)
Current Borrowings (Refer Note 19B)
Total Borrowings (A+B)
432
As at
31 March 2021
(` in crores)
As at
31 March 2020
13,076
16,387
29,393
4,563
388
584
3,516
62
156
1,501
72
2
53,313
(15,351)
37,962
3,715
57,028
20,918
7,824
611
75
-
77
146
-
71
2
46,111
(9,387)
36,724
13,076
59,187
Particulars
9.2% due February-2030
9.2% due December-2022
8.75% due June-2022
7.5% due March-2022
8.9% due December-2021
8.75% due September-2021
5.35% due September-2021
9.18% due July-2021
9.27% due July-2021
8.5% due June-2021
8.75% due April-2021
8.5% due April-2021
8.55% due April-2021
0% due March-2021
9% due November-2020
8.25% due september-2020
7.85% due August-2020
9.45% due August-2020
7.9% due July-2020
8.7% due April-2020
Total
As at
31 March 2021
2,000
749
1,269
493
899
250
3,516
1,000
1,000
1,650
250
2,349
1,000
167
-
-
-
-
-
-
16,592
(` in crores)
As at
31 March 2020
2,000
748
1,268
-
898
250
-
1,000
999
1,650
250
2,349
1,000
-
150
425
500
2,000
300
600
16,387
433
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements b) The Group has taken borrowings in various countries towards funding of its acquisitions, capital expenditure
and working capital requirements. The borrowings comprises funding arrangements from various banks and financial
institutions taken by the parent and subsidiaries. The details of security provided by the Group in various countries, to
various lenders on the asset of the parent and subsidiaries are as follows -
Particulars
Secured long-term borrowings
Secured short-term borrowings
Total
Facility Category
Security details
Working capital loans*
External Commercial
Borrowings
Secured by first pari passu charge on current assets of
Vedanta Limited
Secured by second pari passu charge on fixed assets of
TSPL and first pari passu charge on current assets of the
Company, both present and future#
Other secured working capital loans
The facility is secured by first pari passu charge on all
movable property, plant and equipments related to power
plants and aluminium smelters of BALCO located at Korba
both present and future along with secured lenders
The facility is secured by first pari passu charge on all
movable project assets related to 1200 MW power project
and 3.25 LTPA smelter project both present and future
along with secured lenders at BALCO
As at
31 March 2021
48,004
805
48,809
As at
31 March 2021
650
49
-
219
(` in crores)
As at
31 March 2020
45,815
3,453
49,268
(` in crores)
As at
31 March 2020
3
247
278
335
169
276
Non-convertible debentures Secured by the whole of the movable fixed assets of (i)
5,409
4,914
Alumina Refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Odisha and (ii) Aluminium Smelter
having output of 1.6 MTPA along with a 1,215 (9*135) MW
CPP at Jharsuguda, Odisha
Secured by way of charge against all existing assets of
FACOR
Secured by a first pari passu charge on the whole of
the present and future of the movable fixed assets of
2400 MW (600 MW*4) Power Plant of Vedanta Limited at
Jharsuguda location
Secured by way of first ranking pari passu charge on
movable fixed assets in relation to the Lanjigarh Refinery
Expansion Project (having capacity beyond 2 MTPA and
up to 6 MTPA) situated at Lanjigarh, Orissa. The Lanjigarh
Refinery Expansion Project shall specifically exclude the 1
MTPA alumina refinery of Vedanta Limited along with 90
MW power plant in Lanjigarh and all its related capacity
expansions
Secured by way of first pari passu charge on all present
and future of the movable fixed assets of 2400 MW (600
MW*4) Power Plant of Vedanta Limited at Jharsuguda
location, as may be identified and notified by the Issuer
to the Security Trustee from time to time, with minimum
asset coverage of 1 time of the aggregate face value of
debentures outstanding at any point of time
167
4,000
-
3,998
500
1,100
1,000
1,000
434
< BACK TO CONTENTS
Facility Category
Security details
Term loans from banks
(Includes rupee term loans
and foreign currency term
loans)
Secured by first pari passu charge on movable and/or
immovable fixed assets of TSPL with a minimum asset
cover of 1 times during the tenure of NCD
Other secured non-convertible debuntures
Secured by first pari passu charge on fixed assets of TSPL
and second pari passu charge on current assets of TSPL,
both present and future#
First pari passu charge by way of hypothecation/equitable
mortgage on the movable/immovable assets of the
Aluminium Division of Vedanta Limited comprising of
alumina refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa; aluminium smelter having
output of 1.6 MTPA along with a 1215 (9x135) MW CPP at
Jharsuguda, Orissa, both present and future
Secured by a pari passu charge by way of hypothecation of
all the movable fixed assets of Vedanta Limited pertaining
to its Aluminium Division project consisting of (i) alumina
refinery having output of 1 MTPA (Refinery) along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa (Power Plant); and (ii)
aluminium smelter having output of 1.6 MTPA along with
a 1215 (9x135) MW CPP at Jharsuguda, Orissa (Smelter)
(the Refinery, Power Plant and Smelter). Also, a first pari
passu charge by way of equitable mortgage on the land
pertaining to the mentioned project of aluminium division
Secured by a pari passu charge by way of hypothecation
on the movable fixed assets of the Lanjigarh Refinery
Expansion Project including 210 MW Power Project.
Lanjigarh Refinery Expansion Project shall specifically
exclude the 1 MTPA alumina refinery of Vedanta Limited
along with 90 MW power plant in Lanjigarh and all its
related expansions
Secured by a pari passu charge by way of hypothecation
on the movable fixed assets of Vedanta Limited pertaining
to its Aluminium Division comprising of 1 MTPA alumina
refinery plant with 90 MW captive power plant at Lanjigarh,
Odisha and 1.6 MTPA aluminium smelter plant with 1215
MW captive power plant at Jharsuguda, Odisha
First pari passu charge by way of hypothecation/equitable
mortgage on the movable/immovable assets of the
Aluminium Division of Vedanta Limited comprising of
alumina refinery having output of 1 MTPA along with co-
generation captive power plant with an aggregate capacity
of 90 MW at Lanjigarh, Orissa; aluminium smelter having
output of 1.6 MTPA along with a 1215 (9x135) MW CPP
at Jharsuguda, Orissa and additional charge on Lanjigarh
Expansion project, both present and future
Secured by a pari passu charge by way of hypothecation/
equitable mortgage of the movable/immovable fixed
assets of Vedanta Limited pertaining to its Aluminium
Division comprising of 1 MTPA alumina refinery plant with
90 MW captive power plant at Lanjigarh, Odisha and 1.6
MTPA aluminium smelter plant with 1215 MW captive
power plant at Jharsuguda, Odisha
As at
31 March 2021
(` in crores)
As at
31 March 2020
2,000
2,650
-
5,140
2,725
3,190
1,883
3,384
2,194
2,885
436
458
1,227
1,379
1,092
1,137
2,801
2,985
435
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements < BACK TO CONTENTS
Facility Category
Security details
As at
31 March 2021
(` in crores)
As at
31 March 2020
Facility Category
Security details
2,810
3,692
Others
Secured by (i) floating charge on borrower collection
account and associated permitted investments and (ii)
corporate guarantee from CEHL and floating charge on
collection account and current assets of CEHL
Pledge of 49% of shares & other securities and rights to
any claims held by THL Zinc Limited in and against BMM
The facility is secured by first pari passu charge on all
movable property, plant and equipments related to power
plants and aluminium smelters of BALCO located at Korba
both present and future along with secured lenders
Secured by first pari passu charge on all present and future
moveable fixed assets including but not limited to plant &
machinery ,spares, tools and accessories of BALCO by way
of a deed of hypothecation
Secured by first pari passu charge on all present and
future movable fixed assets including but not limited
to plant & machinery ,spares, tools and accessories of
BALCO (excluding of coal block assets) by way of a deed of
hypothecation
First ranking pari passu charge by way of hypothecation/
mortgage on all fixed/immovable assets of ESL Steel
Limited but excluding any current assets or pledge over
any shares.
Secured by first pari passu charge by way of hypothecation
over all the movable assets (save and except Current
Assets) of Vedanta Limited, present or future, pertaining
to Lanjigarh refinery expansion project beyond 1.7 MTPA
to 6.0 MTPA located at Lanjigarh, Odisha including but not
limited to plant and machinery, machinery spares, tools
and accessories in relation to aforementioned expansion
project. Among others, the Lanjigarh Refinery Expansion
Project shall specifically exclude the alumina refinery up to
1.7 MTPA of the Company along with 90 MW power plant
in Lanjigarh and all its related expansions
Secured by first pari passu charge by the way of whole of
the movable fixed assets of (i) Alumina Refinery having
output of 1 MTPA along with co-generation captive power
plant with an aggregate capacity of 90MW at Lanjigarh,
Odisha and (ii) Aluminium Smelter having output of 1.6
MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda,
Odisha
Secured by a first pari passu charge on the identified
fixed assets of the Vedanta Limited both present and
future, pertaining to its Aluminium business (Jharsuguda
Plant, Lanjigarh Plant), 2400 MW power plant assets at
Jharsuguda, Copper Plant assets at Silvasa, Iron ore
business in the states of Karnataka and Goa, dividends
receivable from Hindustan Zinc Limited (“HZL”) a
subsidiary of Vedanta Limited, and the DSRA to be opened
for the Facility along with the amount lying to the credit
thereof.
Other secured term loans
220
147
404
224
1,053
1,293
1,447
1,615
3,134
3,373
686
736
1,148
1,487
8,538
-
-
1,541
First charge by way of hypothecation on the entire stocks
of raw materials, semi-finished and finished goods,
consumable stores and spares and such other movables
including book-debts, bills whether documentary or clean,
outstanding monies, receivables and all other current
assets of Vedanta limited, both present and future, ranking
pari passu with other participating banks
Secured by hypothecation of stock of raw materials, work-
in-progress, semi-finished, finished products, consumable
stores and spares, bills receivables, book debts and all
other movables, both present and future in BALCO. The
charges rank pari passu among banks under the multiple
banking arrangements, for fund based facilities
Secured by Fixed asset (platinum) of AvanStrate
Other secured borrowings
As at
31 March 2021
(` in crores)
As at
31 March 2020
48
1,146
106
179
536
-
48,809
566
68
49,268
* Includes loans repayable on demand from banks, export packing credit from banks and amounts due on factoring.
# As compared to previous year, TSPL has given an additional charge i.e. second pari passu charge on its current assets on all the working
capital loan and and second pari passu charge on its fixed assets on ruppee term loans outstanding as on 31 March 2021.
c)
The Company facilities are subject to certain financial and non- financial convenants. The primary convenants
which must be complied with include interest service coverage ratio, current ratio, debt service coverage ratio,
total outside liabilities to total net worth, fixed assets coverage ratio, ratio of total term liabilities to net worth,
debt to EBITDA ratio and return on fixed assets. The Group has complied with the covenants as per the terms of
the loan agreement.
d) Term of repayment of total borrowings outstanding as at 31 March 2021 are provided below –
(` in crores)
Weighted
average of
interest as at
31 March 2021
Total
carrying
value
<1 year
1-3
years
3-5
years
>5
years
Remarks
3.85% 4,635
1,098
2,655
701
209 Repayable in 69 quarterly installments and 12
9.00% 30,894
3,754
9,181
7,772
annual installments
Repayable in 177 monthly repayments, 663
quarterly installments, 1 half yearly installments
and 1 bullet payments
10,352
4.34%
388
279
110
-
- Repayable in 2 annual installments
7.97% 16,592
9,675
4,978
-
2,000 Repayable in 12 bullet payments and 6 annual
4.21% 2,161
6.06% 1,315
2,161
1,315
-
-
-
-
installments
- Repayable in 1 bullet payments
- Export packing credit and working capital loan are
repayable within one year from the date of drawal,
cash credit can be repaid anytime as per the
availability of business surplus during the validity
of the facility
4.65%
27
27
-
-
- Repayable within one month
NA
62
13
46
12
- Repayable in 67 monthly installments
Borrowings
Foreign Currency
term Loan
Rupee Term Loan
External
Commercial
Borrowings
Non-convertible
debentures
Commercial paper
Working capital
loan *
Amounts due on
factoring
Deferred sales tax
liability
436
437
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
(` in crores)
f) Movement in borrowings during the year is provided below –
Borrowings
Redeemable
Preference shares
Non-convertible
bonds
Others
Weighted
average of
interest as at
31 March 2021
Total
carrying
value
<1 year
1-3
years
3-5
years
>5
years
Remarks
NA
2
2
-
-
- The redemption and dividend paid to the
preference shares unclaimed if any, is payable on
claim.
0.00%**
156
-
17
20
119 Repayable in 10 annual installment starting from
FY2023-24
5.10%
796
796
-
-
- Suppliers credit is repayable in seven bullet
payments and one annual repayments; Loan
repayable on demand and others payable in one
annual payment
Total
57,028 19,120 16,987
8,505 12,680
The above maturity is based on the total principal outstanding gross of issue expenses and discounting impact of deferred sales tax liability.
*Includes loans repayable on demand from banks of `298 crores and packing credit in foreign currency from banks of `350 crores.
** Increasing interest rate from 0.00% to 0.50% till maturity.
Particulars
Opening balance at 01 April 2019
Cash flow
Other non-cash changes
Foreign exchange Currency Translation differences
As at 01 April 2020
Cash flow
Debt on acquisition through business combination
Other non-cash Changes
Foreign exchange Currency Translation differences
As at 31 March 2021
Short-term
borrowing
22,982
(11,188)
1,211
71
13,076
(9,351)
8
(7)
(11)
3,715
Long-term
borrowing*
43,244
2,830
(206)
243
46,111
7,130
-
126
(54)
53,313
(` in crores)
Total
66,226
(8,358)
1,005
314
59,187
(2,221)
8
119
(65)
57,028
*including Current maturities of Long-term borrowing.
Other non-cash changes comprises amortisation of borrowing costs, foreign exchange difference on borrowings.
e) Term of repayment of total borrowings outstanding as at 31 March 2020 are provided below –
(` in crores)
20 A) FINANCIAL LIABILITIES – TRADE PAYABLES ª
Borrowings
Foreign Currency
term Loan
Rupee Term Loan
External Commercial
Borrowings
Non-convertible
debentures
Commercial paper
Working capital
loan *
Amounts due on
factoring
Deferred sales tax
liability
Redeemable
Preference shares
Non-convertible
bonds
Others
Weighted
average of
interest as at
31 March 2020
Total
carrying
value
<1 year
1-3
years
3-5
years
>5
years
Remarks
4.49% 8,936
2,169
3,135
2,903
779 Repayable in 130 quarterly installments , 13
annual installments and one bullet payment
9.00% 20,918
3,839
6,081
4,795
6,256 Repayable in 724 quarterly installments, 3 half
4.34%
611
217
396
8.85% 16,387
3,975 10,420
6.20% 7,524
7.45% 2,509
7,524
2,509
-
-
-
-
-
-
4.50%
30
30
-
-
yearly installments and 2 bullet payments
- Repayable in 8 annual installments for three
external commercial borrowings
2,000 Repayable in 17 bullet payments
- Repayable in 29 bullet payments
- Export packing credit and loan repayable on
demand is repayable within 1-6 months from the
date of drawal, overdraft can be paid anytime as
per the availability of business surplus during the
validity of the facility and working capital loan is
repayable in 5 bullet payment.
- Repayable within one month
NA
NA
2
0.00%**
146
2
-
-
-
- The redemption and dividend paid to the
preference shares unclaimed if any, is payable on
claim.
7
28
111 Repayable in 10 annual installment starting from
7.09% 2,047
2,013
34
-
FY2023-24
- Suppliers credit is repayable within 6-12 months
,6 suppliers credit LC repayable in more than 12
months up to 36 months; Loan repayable within
one year on demand and others repayable within
one month
Total
59,187 22,299 20,115
7,754
9,147
The above maturity is based on the total principal outstanding gross of issue expenses and discounting impact of deferred sales tax liability.
*Includes loans repayable on demand from banks for `1,078 crores and packing credit in foreign currency from banks.
** Increasing interest rate from 0.00% to 0.50% till maturity.
438
Particulars
Trade Payables
Trade Payables to related party
Total
As at
31 March 2021
7,773
119
7,892
(` in crores)
As at
31 March 2020
7,906
121
8,027
a)
b)
Trade Payables are majorly non-interest bearing and are normally settled up to 180 days terms.
For amount due and terms and conditions of related party payables refer note 40.
20 B) Operational Buyers'/Suppliers' Credit is availed in foreign currency from offshore branches of Indian banks or
foreign banks at an interest rate ranging from 0.4% to 3.5% per annum and in rupee from domestic banks at interest
rate ranging from 4.25% - 6.65% per annum. These trade credits are largely repayable within 180 days from the date
of draw down. Operational Buyers' credit availed in foreign currency is backed by Standby Letter of Credit issued under
working capital facilities sanctioned by domestic banks. Part of these facilities are secured by first pari passu charge
over the present and future current assets of the Group.
21 FINANCIAL LIABILITIES – OTHERS
Liabilities for capital expenditure
Security deposits from vendors and
others
Interest Accrued but not due
Put option liability with non-controlling
interest a
Current maturities of long-term debt b
Unpaid/unclaimed dividend
Profit petroleum payable
Dues to related parties (Refer note 40)
Lease liabilitiesd
Other Liabilities c
Total
936
-
-
263
-
-
-
-
160
86
1,445
7,009
218
1,217
-
15,351
101
1,468
294
481
2,664
28,803
7,945
218
1,217
263
15,351
101
1,468
294
641
2,750
30,248
811
-
171
247
-
-
-
-
203
69
1,501
5,910
202
1,277
-
9,387
94
689
56
457
3,090
21,162
(` in crores)
Total
6,721
202
1,448
247
9,387
94
689
56
660
3,159
22,663
439
77
20
42
28
1 Repayable in 78 monthly installments
Particulars
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements a)
The non-controlling shareholders of ASI have an option to offload their shareholding to the Group. The option is exercisable at any
time within the period of three years following the fifth anniversary of the date of shareholders’ agreement (22 December 2017) at a
price higher of `52 (US$0.757) per share and the fair market value of the share. Therefore, the liability is carried at higher of the two.
Subsequent changes to the put option liability are treated as equity transaction and hence accounted for in equity.
b)
Current maturities of long-term debt consist of:
Particulars
Deferred sales tax liability
Term loans from banks
- Rupee term loans
- Foreign currency term loans
External commercial borrowings
Non-convertible debentures
Others
Redeemable preference shares
Total
As at
31 March 2021
12
(` in crores)
As at
31 March 2020
20
3,724
1,097
279
9,653
584
2
15,351
3,829
1,307
217
3,971
41
2
9,387
c)
d)
Includes revenue received in excess of entitlement interest of `1,482 crores (31 March 2020: `1,594 crores) and reimbursement of
expenses, interest accrued on other than borrowings, liabilities related to claim, liability for stock options etc.
Movement in Lease liabilites is as follows:
Particulars
At 01 April 2019
Additions during the year
Interest on Lease Liabilities
Payments made
Deletions
As at 31 March 2020
Additions during the year
Interest on Lease Liabilities
Payments made
Deletions
As at 31 March 2021
(` in crores)
Amount
139
1,021
25
(316)
(209)
660
360
28
(338)
(69)
641
22 FINANCIAL INSTRUMENTS
A. Financial assets and liabilities:
The accounting classification of each category of financial instruments, their carrying amounts and their fair values are
set out below:
As at 31 March 2021
Financial Assets
Investments*
Trade receivables
Loans
Other financial assets
Derivatives
Cash and cash equivalents
Other bank balances
Total
440
Fair value
through profit
or loss
16,555
163
-
-
13
-
-
16,731
Fair value
through other
comprehensive
income
103
-
-
-
-
-
-
103
Derivatives
designated
as hedging
instruments
-
-
-
-
57
-
-
57
(` in crores)
Amortised cost
Total carrying
value
Total fair value
-
6,486
7,088
6,765
-
4,854
11,775
36,968
16,658
6,649
7,088
6,765
70
4,854
11,775
53,859
16,658
6,649
7,609
6,765
70
4,854
11,775
54,380
< BACK TO CONTENTS
Financial Liabilities
Borrowings
Trade payables
Operational buyers' credit/
suppliers' credit
Derivatives
Other financial liabilities**
Total
As at 31 March 2020
Financial Assets
Investments*
Trade receivables
Loans
Other financial assets
Derivatives
Cash and cash equivalents
Other bank balances
Total
Financial Liabilities
Borrowings
Trade payables
Operational buyers' credit/
suppliers' credit
Derivatives
Other financial liabilities**
Total
Fair value
through profit
or loss
-
707
-
93
-
800
Fair value
through other
comprehensive
income
-
-
-
Derivatives
designated
as hedging
instruments
57,028
7,185
7,983
262
-
262
-
14,634
86,830
(` in crores)
Amortised cost
Total carrying
value
Total fair value
-
-
-
-
263
263
57,028
7,892
7,983
355
14,897
88,155
56,700
7,892
7,983
355
14,897
87,827
(` in crores)
Fair value
through profit
or loss
24,709
51
-
-
279
-
-
25,039
Fair value
through other
comprehensive
income
41
-
-
-
-
-
-
41
Derivatives
designated
as hedging
instruments
-
-
-
-
416
-
-
416
Fair value
through profit
or loss
-
517
-
83
-
600
Fair value
through other
comprehensive
income
-
-
-
Derivatives
designated
as hedging
instruments
59,187
7,510
8,945
58
-
58
-
13,029
88,671
Amortised cost
Total carrying
value
Total fair value
-
5,757
102
4,929
-
5,117
7,385
23,290
24,750
5,808
102
4,929
695
5,117
7,385
48,786
24,750
5,808
102
4,929
695
5,117
7,385
48,786
(` in crores)
Amortised cost
Total carrying
value
Total fair value
-
-
-
-
247
247
59,187
8,027
8,945
141
13,276
89,576
59,292
8,027
8,945
141
13,276
89,681
* Investments exclude equity investment in associates and joint ventures which are accounted as per the equity method of accounting and
hence not considered.
**includes lease liability of `641 crores (31 March 2020: `660 crores).
*** Represents net put option liability with non-controlling interests accounted for at fair value. (Refer note 21).
Fair value hierarchy
B.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
(i)
(ii)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices).
(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
The below table summarises the categories of financial assets and liabilities as at 31 March 2021 and 31 March 2020
measured at fair value:
441
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
As at 31 March 2021
Financial Assets
Level 1
Level 2
At fair value through profit or loss
Investments
Derivative financial assets**
Trade receivables
At fair value through other comprehensive income
Investments
Derivatives designated as hedging instruments
Derivative financial assets**
Total
Financial Liabilities
At fair value through profit or loss
Derivative financial liabilities**
Trade payables
Derivatives designated as hedging instruments
Derivative financial liabilities**
Other financial liabilities - Net put option liability with non-controlling
interests accounted for at fair value. (Refer note 21).
Total
As at 31 March 2020
6,318
-
-
92
-
6,410
-
-
-
-
-
10,186
13
163
-
57
10,419
Level 2
93
707
262
-
1,062
Financial Assets
Level 1
Level 2
At fair value through profit or loss
Investments
Derivative financial assets**
Trade receivables
At fair value through other comprehensive income
Investments
Derivatives designated as hedging instruments
Derivative financial assets**
Total
7,598
-
-
30
-
7,628
17,060
279
51
-
416
17,806
Financial Liabilities
Level 1
Level 2
At fair value through profit or loss
Derivative financial liabilities**
Trade payable
Derivatives designated as hedging instruments
Derivative financial liabilities**
Other financial liabilities – Net put option liability with non-controlling
interests accounted for at fair value. (Refer note 21).
Total
** Refer D below.
-
-
-
-
-
83
517
58
-
658
(` in crores)
Level 3
51
-
-
11
-
62
(` in crores)
Level 3
-
-
-
263
263
(` in crores)
Level 3
51
-
-
11
-
62
(` in crores)
Level 3
-
-
-
247
247
< BACK TO CONTENTS
The below table summarises the fair value of loans and borrowings which are carried at amortised cost as at 31 March
2021 and 31 March 2020
As at 31 March 2021
Financial Assets
Loans*
Total
Financial Liabilities
Borrowings
Total
As at 31 March 2020
Financial Liabilities
Borrowings
Total
*Refer Note 40(I).
Level 1
-
-
Level 1
-
-
Level 1
-
-
Level 2
7,609
7,609
Level 2
56,700
56,700
Level 2
59,292
59,292
(` in crores)
Level 3
-
-
(` in crores)
Level 3
-
-
(` in crores)
Level 3
-
-
The fair value of the financial assets and liabilities are
at the amount that would be received to sell an asset
and paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The following methods and assumptions were used to
estimate the fair values:
Investments traded in active markets are determined
by reference to quotes from the financial institutions;
for example: Net asset value (NAV) for investments
in mutual funds declared by mutual fund house. For
other listed securities traded in markets which are not
active, the quoted price is used wherever the pricing
mechanism is same as for other marketable securities
traded in active markets. Other current investments
and structured investments are valued by referring to
market inputs including quotes, trades, poll, primary
issuances for securities and /or underlying securities
issued by the same or similar issuer for similar
maturities and movement in benchmark security etc.
Trade receivables, cash and cash equivalents,
other bank balances, other financial assets, current
borrowings, trade payables, operational buyers'
credit and other current financial liabilities: Fair values
approximate their carrying amounts largely due to the
short-term maturities of these instruments.
Non-current fixed-rate and variable-rate borrowings:
Fair value has been determined by the Group based
on parameters such as interest rates, specific country
risk factors, and the risk characteristics of the financed
project.
Derivative financial assets/liabilities: The Group enters
into derivative financial instruments with various
counterparties. Interest rate swaps, foreign exchange
forward contracts and commodity forward contracts
are valued using valuation techniques, which employs
the use of market observable inputs. The most
frequently applied valuation techniques include the
forward pricing and swap models, using present value
calculations. The models incorporate various inputs
including foreign exchange spot and forward rates,
yield curves of the respective currencies, currency
basis spreads between the respective currencies,
interest rate curves and forward rate curves of the
underlying commodity. Commodity contracts are
valued using the forward LME rates of commodities
actively traded on the listed metal exchange i.e.
London Metal Exchange, United Kingdom (U.K.).
Other non-current financial assets and liabilities: Fair
value is calculated using a discounted cash flow model
with market assumptions, unless the carrying value is
considered to approximate to fair value.
For all other financial instruments, the carrying amount is
either the fair value, or approximates the fair value.
The changes in counterparty credit risk had no material
effect on the hedge effectiveness assessment for
derivatives designated in hedge relationship and the value
of other financial instruments recognised at fair value.
The estimated fair value amounts as at 31 March 2021 and
31 March 2020 have been measured as at respective date.
442
443
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements As such, the fair values of these financial instruments
subsequent to reporting date may be different than the
amounts reported at each year-end.
There were no significant transfers between Level 1,
Level 2 and Level 3 during the year.
C. Risk management framework
The Group’s businesses are subject to several risks and
uncertainties including financial risks.
The Group’s documented risk management policies act
as an effective tool in mitigating the various financial risks
to which the businesses are exposed in the course of their
daily operations. The risk management policies cover
areas such as liquidity risk, commodity price risk, foreign
exchange risk, interest rate risk, counterparty credit risk
and capital management. Risks are identified at both
the corporate and individual subsidiary level with active
involvement of senior management. Each operating
subsidiary in the Group has in place risk management
processes which are in line with the Group’s policy. Each
significant risk has a designated ‘owner’ within the Group
at an appropriate senior level. The potential financial
impact of the risk and its likelihood of a negative outcome
are regularly updated.
The risk management process is coordinated by the
Management Assurance function and is regularly
reviewed by the Group’s Audit Committee. The Audit
Committee is aided by the other Committees of the
Board including the Risk Management Committee, which
meets regularly to review risks as well as the progress
against the planned actions. Key business decisions are
discussed at the periodic meetings of the Executive
Committee. The overall internal control environment
and risk management programme including financial risk
management is reviewed by the Audit Committee on
behalf of the Board.
The risk management framework aims to:
- improve financial risk awareness and risk transparency
- identify, control and monitor key risks
- identify risk accumulations
- provide management with reliable information on the
Group’s risk situation
- improve financial returns
Treasury management
Treasury management focuses on liability management,
capital protection, liquidity maintenance and yield
maximisation. The treasury policies are approved by the
Committee of the Board. Daily treasury operations of the
subsidiary companies are managed by their respective
finance teams within the framework of the overall Group
treasury policies. Long-term fund raising including
strategic treasury initiatives are managed jointly by
the business treasury team and the central team at
corporate treasury while short-term funding for routine
working capital requirements is delegated to subsidiary
companies. A monthly reporting system exists to inform
senior management of the Group’s investments and debt
position, exposure to currency, commodity and interest
rate risk and their mitigants including the derivative
position. The Group has a strong system of internal
control which enables effective monitoring of adherence
to Group’s policies. The internal control measures are
effectively supplemented by regular internal audits.
The Group uses derivative instruments to manage the
exposure in foreign currency exchange rates, interest
rates and commodity prices. The Group does not acquire
or issue derivative financial instruments for trading or
speculative purposes. The Group does not enter into
complex derivative transactions to manage the treasury
and commodity risks. Both treasury and commodities
derivative transactions are normally in the form of
forward contracts, interest rate and currency swaps and
these are in line with the Group's policies.
Commodity price risk
The Group is exposed to the movement of base metal
commodity prices on the London Metal Exchange. Any
decline in the prices of the base metals that the Group
produces and sells will have an immediate and direct
impact on the profitability of the businesses. As a general
policy, the Group aims to sell the products at prevailing
market prices. The commodity price risk in imported
input commodity such as Alumina, anodes, etc., for our
aluminium and Copper business respectively, is hedged
on back-to-back basis ensuring no price risk for the
business. Hedging is used primarily as a risk management
tool and, in some cases, to secure future cash flows in
cases of high volatility by entering into forward contracts
or similar instruments. The hedging activities are subject
to strict limits set out by the Board and to a strictly
defined internal control and monitoring mechanism.
Decisions relating to hedging of commodities are taken
at the Executive Committee level, basis clearly laid
down guidelines.
Whilst the Group aims to achieve average LME prices
for a month or a year, average realised prices may not
necessarily reflect the LME price movements because of
a variety of reasons such as uneven sales during the year
and timing of shipments.
Group is also exposed to the movement of international
crude oil price and the discount in the price of Rajasthan
crude oil to Brent price.
Financial instruments with commodity price risk are
entered into in relation to following activities:
economic hedging of prices realised on commodity
contracts
444
< BACK TO CONTENTS
cash flow hedging of revenues, forecasted highly
probable transactions.
Aluminium
The requirement of the primary raw material, alumina, is
partly met from own sources and the rest is purchased
primarily on negotiated price terms. Sales prices
are linked to the LME prices. At present the Group
on selective basis hedges the aluminium content in
outsourced alumina to protect its margins. The Group
also enters into hedging arrangements for its aluminium
sales to realise average month of sale LME prices.
Copper
The Group’s custom refining copper operations at
Silvassa is benefitted by a natural hedge except to the
extent of a possible mismatch in quotational periods
between the purchase of anodes/blisters and the sale of
finished copper. The Group’s policy on custom smelting
is to generate margins from Refining Charges or " RC”,
improving operational efficiencies, minimising conversion
cost, generating a premium over LME on sale of
finished copper, sale of by-products and from achieving
import parity on domestic sales. Hence, mismatches
in quotational periods are managed to ensure that the
gains or losses are minimised. The Group hedges this
variability of LME prices through forward contracts and
tries to make the LME price a pass-through cost between
purchases of anodes/blisters and sales of finished
products, both of which are linked to the LME price.
RCs are a major source of income for the Indian copper
refining operations. Fluctuations in Rcs are influenced
by factors including demand and supply conditions
prevailing in the market for smelters output. The Group’s
copper business has a strategy of securing a majority of
its anodes/blisters feed requirement under long-term
contracts with smelters/traders.
Zinc, lead and silver
The sales prices are linked to the LME prices. The Group
also enters into hedging arrangements for its Zinc, Lead
and Silver sales to realise average month of sale LME
prices.
Zinc International
Raw material for zinc and lead is mined in Namibia and
South Africa with sales prices linked to the LME prices.
Iron ore
The Group sells its Iron Ore production from Goa on the
prevailing market prices and from Karnataka through
e-auction route as mandated by State Government of
Karnataka in India.
Oil and gas
The prices of various crude oils are based upon the price
of the key physical benchmark crude oil such as Dated
Brent, West Texas Intermediate, and Dubai/Oman etc.
The crude oil prices move based upon market factors
like supply and demand. The regional producers price
their crude basis these benchmark crude with a premium
or discount over the benchmark based upon quality
differential and competitiveness of various grades.
Natural gas markets are evolving differently in important
geographical markets. There is no single global market for
natural gas. This could be owing to difficulties in large-
scale transportation over long distances as compared to
crude oil. Globally, there are three main regional hubs for
pricing of natural gas, which are USA (Henry Hub Prices),
UK (NBP Price) and Japan (imported gas price, mostly
linked to crude oil).
Provisionally priced financial instruments
On 31 March 2021, the value of net financial liabilities
linked to commodities (excluding derivatives) accounted
for on provisional prices was `544 crores (31 March 2020:
`466 crores). These instruments are subject to price
movements at the time of final settlement and the final
price of these instruments will be determined in the
financial year beginning 01 April 2021.
Set out below is the impact of 10% increase in LME prices
on pre-tax profit/(loss) for the year and pre-tax equity
as a result of changes in value of the Group’s commodity
financial instruments:
For the year ended 31 March 2021
Copper
For the year ended 31 March 2020
Copper
Total Exposure
(1,002)
Effect on pre-tax
profit/(loss) of a
10% increase in the
LME
(100)
Total Exposure
(1,028)
Effect on pre-tax
profit/(loss) of a
10% increase in the
LME
(103)
(` in crores)
Effect on equity of
a 10% increase in
the LME
-
(` in crores)
Effect on equity of
a 10% increase in
the LME
-
445
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
The above sensitivities are based on volumes, costs,
exchange rates and other variables and provide the
estimated impact of a change in LME prices on profit and
equity assuming that all other variables remain constant.
A 10% decrease in LME prices would have an equal and
opposite effect on the Group’s financial statements.
The impact on pre-tax profit/(loss) mentioned above
includes the impact of a 10% increase in closing copper
LME for provisionally priced copper concentrate
purchased at Copper division custom smelting
operations in India of `87 crores loss (31 March 2020: `79
crores loss), which is pass through in nature and as such
will not have any impact on the profitability.
(a) Financial risk
The Group’s Board approved financial risk policies include
monitoring, measuring and mitigating the liquidity,
currency, interest rate and counterparty risk. The
Group does not engage in speculative treasury activity
but seeks to manage risk and optimise interest and
commodity pricing through proven financial instruments.
Liquidity risk
The Group requires funds both for short-term operational
needs as well as for long-term investment
programmes mainly in growth projects. The Group
generates sufficient cash flows from the current
operations which together with the available cash and
cash equivalents, short-term investments and
structured investment net of deferred consideration
payable for such investments provide liquidity both in the
short-term as well as in the long-term. The Group has
been rated by CRISIL Limited (CRISIL) and India Ratings
and Research Private Limited (India Rating) for its capital
market issuance in the form of CPs and NCDs and for its
banking facilities in line with Basel II norms.
In May 2020, India Ratings downgraded its ratings on the
Company’s long-term facilities to ‘IND AA-‘ from ‘IND AA’
with a negative outlook on account of higher expected
balance sheet leverage and elevated refinancing risk in
risk averse debt markets in COVID environment. CRISIL
also downgraded its rating on the Company’s long-
term facilities and its Non-current Debentures (NCD)
programme to ‘CRISIL AA-‘ from ‘CRISIL AA’ in October
2020 while revising the outlook to ‘Stable’ from ‘Negative’
on expectation of higher financial leverage and cash
outflow from VEDL towards debt maturities at VRL post
failure of take private transaction.
In February 2021, India Ratings revised its outlook to
‘Stable’ from ‘Negative’ while affirming the long-term
issuer ratings at ‘IND AA-‘. The Outlook revision reflects
the VDL group’s improved liquidity position, supported by
the moderated refinancing risks at VRL.
Vedanta Limited has the highest short-term rating on its
working capital and Commercial Paper Programme at A1+
from CRISIL and India Ratings.
Anticipated future cash flows, together with undrawn
fund based committed facilities of `11,412 crores, and
cash, bank and current investments of `32,614 crores as
at 31 March 2021, are expected to be sufficient to meet
the liquidity requirement of the Group in the near future.
The Group remains committed to maintaining a
healthy liquidity, a low gearing ratio, deleveraging and
strengthening its balance sheet. The maturity profile of
the Group’s financial liabilities based on the remaining
period from the date of balance sheet to the contractual
maturity date is given in the table below. The figures
reflect the contractual undiscounted cash obligation of
the Group.
As at 31 March 2021
Payments due by year
Borrowings*
Derivative financial liabilities
Lease liability
Trade Payables, Operational Buyers' Credit
and Other financial liabilities**
<1 year
23,571
279
481
27,848
1-3 years
3-5 years
22,088
76
60
1,114
11,673
-
22
0
>5 years
15,503
-
78
-
(` in crores)
Total
72,835
355
641
28,962
52,179
23,338
11,695
15,581
1,02,793
< BACK TO CONTENTS
As at 31 March 2020
Payments due by year
Borrowings*
Derivative financial liabilities
Lease liability
Trade Payables, Operational Buyers' Credit
and Other financial liabilities**
<1 year
27,156
96
457
27,100
1-3 years
3-5 years
24,482
45
95
1,132
9,547
-
40
0
>5 years
11,536
-
68
-
(` in crores)
Total
72,721
141
660
28,232
54,809
25,754
9,587
11,604
1,01,754
*Includes Non-current borrowings, current borrowings, current maturities of non-current borrowings, committed interest payments on
borrowings and interest accrued on borrowings.
**Includes both Non-current and current financial liabilities and committed interest payment, as applicable. Excludes current maturities of
non-current borrowings and interest accrued on borrowings.
The Group had access to following funding facilities:
As at 31 March 2021
Funding facility
Fund/non-fund based
As at 31 March 2020
Funding facility
Fund/non-fund based
Total Facility
72,752
Drawn
56,232
Total Facility
63,726
Drawn
52,611
(` in crores)
Undrawn
16,520
(` in crores)
Undrawn
11,115
Collateral
The Group has pledged financial instruments with
carrying amount of `21,990 crores (31 March 2020:
`21,595 crores) and inventories with carrying amount of
`7,654 crores (31 March 2020: `8,514 crores) as per the
requirements specified in various financial facilities in
place. The counterparties have an obligation to release
the securities to the Group when financial facilities are
surrendered.
(b) Foreign exchange risk
Fluctuations in foreign currency exchange rates may
have an impact on the consolidated statement of profit
and loss, the consolidated statement of change in
equity, where any transaction references more than one
currency or where assets/liabilities are denominated
in a currency other than the functional currency of the
respective consolidated entities.
Considering the countries and economic environment
in which the Group operates, its operations are subject
to risks arising from the fluctuations primarily in the US
dollar, Australian dollar, Namibian dollar, AED, ZAR, GBP,
JPY, INR and Euro against the functional currencies of
Vedanta Limited and its subsidiaries.
Exposures on foreign currency loans are managed
through the Group wide hedging policy, which is reviewed
periodically to ensure that the results from fluctuating
currency exchange rates are appropriately managed. The
Group strives to achieve asset liability offset of foreign
currency exposures and only the net position is hedged.
The Group’s presentation currency is the Indian Rupee
(INR). The majority of the assets are located in India
and the Indian Rupee is the functional currency for the
Indian operating subsidiaries except for Oil and Gas
business operations which have a US dollar functional
currency. Natural hedges available in the business are
identified at each entity level and hedges are placed
only for the net exposure. Short-term net exposures are
hedged progressively based on their maturity. A more
conservative approach has been adopted for project
expenditures to avoid budget overruns, where cost of
the project is calculated taking into account the hedge
cost. The hedge mechanisms are reviewed periodically to
ensure that the risk from fluctuating currency exchange
rates is appropriately managed.
The following analysis is based on the gross exposure as
at the reporting date which could affect the consolidated
statement of profit and loss. The exposure is mitigated
by some of the derivative contracts entered into by the
Group as disclosed under the section on “Derivative
financial instruments”.
446
447
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
The carrying amount of the Group's financial assets and liabilities in different currencies are as follows:
Currency
INR
USD
Others
Total
(` in crores)
As at 31 March 2021
As at 31 March 2020
Financial
Asset
40,236
12,802
821
53,859
Financial
liabilities
63,657
21,982
2,516
88,155
Financial
Asset
35,298
12,762
726
48,786
Financial
liabilities
60,539
26,764
2,273
89,576
The Group’s exposure to foreign currency arises where a Group entity holds monetary assets and liabilities
denominated in a currency different to the functional currency of the respective business, with US dollar being the
major non-functional currency.
The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure with a
simultaneous parallel foreign exchange rates shift in the foreign currencies by 10% against the functional currency of
the respective entities.
Set out below is the impact of a 10% strengthening in the functional currencies of the respective businesses on pre-tax
profit/(loss) and pre-tax equity arising as a result of the revaluation of the Group’s foreign currency monetary financial
assets/liabilities:
For the year ended 31 March 2021
USD
INR
For the year ended 31 March 2020
USD
INR
Effect of
10% strengthening
of functional currency on
pre-tax profit/(loss)
1,132
(307)
(` in crores)
Effect of
10% strengthening
of functional currency on
equity
-
-
Effect of
10% strengthening
of functional currency on
pre-tax profit/(loss)
1,321
28
(` in crores)
Effect of
10% strengthening
of functional currency on
equity
-
-
A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect on the
Group’s financial statements.
Interest rate risk
(c)
At 31 March 2021, the Group’s net debt of `24,414 crores (31 March 2020: `21,426 crores) comprises debt of `57,028
crores (31 March 2020: `59,187 crores) offset by cash, bank and current investments of `32,614 crores (31 March 2020:
`37,761 crores).
The Group is exposed to interest rate risk on short-term and long-term floating rate instruments and on the refinancing
of fixed rate debt. The Group’s policy is to maintain a balance of fixed and floating interest rate borrowings and the
proportion of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Group
are principally denominated in Indian Rupees and US dollars with mix of fixed and floating rates of interest. The USD
floating rate debt is linked to US dollar LIBOR and INR Floating rate debt to Bank’s base rate. The Group has a policy of
selectively using interest rate swaps, option contracts and other derivative instruments to manage its exposure to
interest rate movements. These exposures are reviewed by appropriate levels of management on a monthly basis. The
448
< BACK TO CONTENTS
Group invests cash and liquid investments in short-term deposits and debt mutual funds, some of which generate
a tax-free return, to achieve the Group’s goal of maintaining liquidity, carrying manageable risk and achieving
satisfactory returns.
Floating rate financial assets are largely mutual fund investments which have debt securities as underlying assets. The
returns from these financial assets are linked to market interest rate movements; however the counterparty invests in
the agreed securities with known maturity tenure and return and hence has manageable risk.
The exposure of the Group’s financial assets as at 31 March 2021 to interest rate risk is as follows:
Financial Assets
53,859
11,332
27,060
The exposure of the Group’s financial liabilities as at 31 March 2021 to interest rate risk is as follows:
Total
Floating rate
financial assets
Fixed rate financial
assets
Financial Liabilities
88,155
32,391
32,857
The exposure of the Group’s financial assets as at 31 March 2020 to interest rate risk is as follows:
Total
Floating rate
financial liabilities
Fixed rate financial
liabilities
Financial Assets
48,786
12,106
24,434
The exposure of the Group’s financial liabilities as at 31 March 2020 to interest rate risk is as follows:
Total
Floating rate
financial assets
Fixed rate financial
assets
Financial Liabilities
89,576
31,354
37,415
Total
Floating rate
financial liabilities
Fixed rate financial
liabilities
(` in crores)
Non-interest
bearing financial
assets
15,467
(` in crores)
Non-interest
bearing financial
liabilities
22,907
(` in crores)
Non-interest
bearing financial
assets
12,246
(` in crores)
Non-interest
bearing financial
liabilities
20,807
Considering the net debt position as at 31 March 2021 and the investment in Bank deposits, corporate bonds and debt
mutual funds, any increase in interest rates would result in a net loss and any decrease in interest rates would result
in a net gain. The sensitivity analysis below has been determined based on the exposure to interest rates for financial
instruments at the balance sheet date.
The table below illustrates the impact of a 0.5% to 2.0% movement in interest rates on floating rate financial assets/
liabilities (net) on profit/(loss) and equity assuming that the changes occur at the reporting date and has been calculated
based on risk exposure outstanding as of that date. The year end balances are not necessarily representative of the
average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign
currency rates, remain constant.
Increase in interest rates
0.50%
1.00%
2.00%
Effect on pre-tax
profit/(loss) during
the year ended 31
March 2021
(105)
(211)
(421)
(` in crores)
Effect on pre-tax
profit/(loss) during
the year ended 31
March 2020
(96)
(192)
(385)
449
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
An equivalent reduction in interest rates would have
an equal and opposite effect on the Group’s financial
statements.
(d) Counterparty and concentration of credit risk
Credit risk refers to the risk that counterparty will default
on its contractual obligations resulting in financial loss to
the Group. The Group has adopted a policy of only dealing
with creditworthy counterparties and obtaining sufficient
collateral, where appropriate, as a means of mitigating
the risk of financial loss from defaults.
The Group is exposed to credit risk from trade
receivables, contract assets, investments, loans, other
financial assets, and derivative financial instruments.
Credit risk on receivables is limited as almost all credit
sales are against letters of credit and guarantees of banks
of national standing.
Moreover, given the diverse nature of the Group’s
businesses, trade receivables are spread over a number
of customers with no significant concentration of credit
risk. The history of trade receivables shows a negligible
provision for bad and doubtful debts. Therefore, the
Group does not expect any material risk on account of
non-performance by any of the Group’s counterparties.
The Group has clearly defined policies to mitigate
counterparty risks. For short-term investments,
counterparty limits are in place to limit the amount of
credit exposure to any one counterparty. This, therefore,
results in diversification of credit risk for our mutual
fund and bond investments. For derivative and financial
instruments, the Group attempts to limit the credit
risk by only dealing with reputable banks and financial
institutions.
The carrying value of the financial assets represents
the maximum credit exposure. The Group’s maximum
exposure to credit risk as at 31 March 2021 and 31 March
2020 is `53,859 crores and `48,786 crores respectively.
The maximum credit exposure on financial guarantees
given by the Group for various financial facilities is
described in Note 37 on “Contingent liability and capital
commitments”.
None of the Group’s cash equivalents, including time
deposits with banks, are past due or impaired. Regarding
trade receivables, loans and other financial assets (both
current and non-current), there were no indications as at
31 March 2021, that defaults in payment obligations will
occur except as described in Note 8 and 10 on allowance
for impairment of trade receivables and other
financial assets.
Of the year end trade receivables, loans and other financial assets (excluding Bank deposits, site restoration fund and
derivatives) balance the following, though overdue, are expected to be realised in the normal course of business and
hence, are not considered impaired as at 31 March 2021 and 31 March 2020:
Particulars
Neither impaired nor past due
Past due but not impaired
- Less than 1 month
- Between 1–3 months
- Between 3–12 months
- Greater than 12 months
Total
As at
31 March 2021
13,433
(` in crores)
As at
31 March 2020
2,964
612
276
842
4,402
19,565
794
1,427
1,686
2,597
9,468
Receivables are deemed to be past due or impaired with
reference to the Group’s normal terms and conditions
of business. These terms and conditions are determined
on a case to case basis with reference to the customer’s
credit quality and prevailing market conditions.
Receivables that are classified as ‘past due’ in the above
tables are those that have not been settled within the
terms and conditions that have been agreed with that
customer. The Group based on past experiences does not
expect any material loss on its receivables.
The credit quality of the Group’s customers is monitored
on an ongoing basis. Where receivables have been
impaired, the Group actively seeks to recover the
amounts in question and enforce compliance with credit
terms.
< BACK TO CONTENTS
Movement in allowances for Financial Assets (Trade receivables and Financial assets – others)
The change in the allowance for financial assets (current and non-current) is as follows:
Particulars
Trade receivables
As at 01 April 2019
Allowance made during the year
Reversals/write-off during the year
Exchange differences
As at 31 March 2020
Allowance made during the year
Reversals/write-off during the year
Exploration cost written off
Exchange differences
As at 31 March 2021
569
18
(17)
0
570
95
(0)
0
(0)
665
Financial assets –
Others
476
470
(18)
38
966
122
(58)
2
(12)
1,020
(` in crores)
Financial assets –
Loans
-
-
-
-
0
78
-
-
-
78
D. Derivative financial instruments
The Group uses derivative instruments as part of its
management of exposure to fluctuations in foreign
currency exchange rates, interest rates and commodity
prices. The Group does not acquire or issue derivative
financial instruments for trading or speculative purposes.
The Group does not enter into complex derivative
transactions to manage the treasury and commodity
risks. Both treasury and commodities derivative
transactions are normally in the form of forward
contracts and these are subject to the Group guidelines
and policies.
The fair values of all derivatives are separately recorded
in the consolidated balance sheet within current and
non-current assets and liabilities. Derivatives that are
designated as hedges are classified as current or non-
current depending on the maturity of the derivative.
The use of derivatives can give rise to credit and market
risk. The Group tries to control credit risk as far as
possible by only entering into contracts with reputable
banks and financial institutions. The use of derivative
instruments is subject to limits, authorities and regular
monitoring by appropriate levels of management.
The limits, authorities and monitoring systems are
periodically reviewed by management and the Board.
The market risk on derivatives is mitigated by changes
in the valuation of the underlying assets, liabilities
or transactions, as derivatives are used only for risk
management purposes.
Cash flow hedges
The Group enters into forward exchange and commodity
price contracts for hedging highly probable forecast
transaction and account for them as cash flow hedges
and states them at fair value. Subsequent changes in
fair value are recognised in equity through OCI until the
hedged transaction occurs, at which time, the respective
gain or losses are reclassified to profit or loss. These
hedges have been effective for the year ended 31 March
2021 and 31 March 2020.
The Group uses foreign exchange contracts from time
to time to optimise currency risk exposure on its foreign
currency transactions. The Group hedged part of its
foreign currency exposure on capital commitments
during the year ended 2021. Fair value changes on such
forward contracts are recognised in other comprehensive
income.
The majority of cash flow hedges taken out by the
Group during the year comprise non-derivative hedging
instruments for hedging the foreign exchange rate of
highly probable forecast transactions and commodity
price contracts for hedging the commodity price risk of
highly probable forecast transactions.
The cash flows related to above are expected to occur
during the year ending 31 March 2022 and consequently
may impact profit or loss for that year depending upon
the change in the commodity prices and foreign exchange
rates movements. For cash flow hedges regarded as basis
adjustments to initial carrying value of the property,
plant and equipment, the depreciation on the basis
adjustments made is expected to affect profit or loss
over the expected useful life of the property, plant and
equipment.
Fair value hedges
The fair value hedges relate to forward covers taken to
hedge currency exposure and commodity price risks.
The Group’s sales are on a quotational period basis,
generally one month to three months after the date of
delivery at a customer’s facility. The Group enters into
forward contracts for the respective quotational period
450
451
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
to hedge its commodity price risk based on average LME prices. Gains and losses on these hedge transactions are
substantially offset by the amount of gains or losses on the underlying sales. Net gains and losses are recognised in the
consolidated statement of profit and loss.
The Group uses foreign exchange contracts from time to time to optimise currency risk exposure on its foreign
currency transactions. Fair value changes on such forward contracts are recognised in the consolidated statement of
profit and loss.
Non-designated economic hedges
The Group enters into derivative contracts which are not designated as hedges for accounting purposes, but provide
an economic hedge of a particular transaction risk or a risk component of a transaction. Hedging instruments include
copper, aluminium future contracts on the LME and certain other derivative instruments. Fair value changes on such
derivative instruments are recognised in the consolidated statement of profit and loss.
The fair value of the Group’s derivative positions recorded under derivative financial assets and derivative financial
liabilities are as follows:
< BACK TO CONTENTS
23 PROVISIONS
Particulars
Provision for employee
benefits a (Refer note 31)
- Retirement benefit
- Others
Provision for restoration,
rehabilitation and
environmental costs b
Other provisions b
Total
Derivative Financial Instruments
Current
Cash flow hedge*
- Commodity contracts
- Forward foreign currency contracts
- Interest rate swap
Fair Value hedge
- Commodity contracts
- Forward foreign currency contracts
Non-qualifying hedges/economic hedge
- Commodity contracts
- Forward foreign currency contracts
- Cross currency swap
Total
Non-current
Cash flow hedge*
- Interest rate swap
Fair Value hedge
- Forward foreign currency contracts
Non-qualifying hedges
- Forward foreign currency contracts
Total
As at 31 March 2021
As at 31 March 2020
Assets
Liabilities
Assets
Liabilities
3
-
-
41
14
1
12
-
70
-
-
-
-
55
-
5
9
116
3
91
-
279
5
71
-
76
104
-
-
100
212
6
269
1
692
-
-
3
3
-
-
3
11
36
20
25
1
96
8
-
37
45
* Refer consolidated statements of profit and loss and consolidated statement of changes in equity for the change in the fair value
of cash flow hedges.
(` in crores)
a)
Provision for employee benefits includes gratuity, compensated absences, deferred cash bonus etc.
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
Total
(` in crores)
146
12
2,974
-
3,132
115
154
28
56
353
261
166
3,002
56
3,485
156
14
2,658
-
2,828
112
170
19
54
355
b) Particulars
As at 01 April 2019
Additions
Amounts Utilised
Unused amounts reversed
Unwinding of discount (Refer note 31)
Revision in estimates
Exchange differences
As at 31 March 2020
Additions
Amounts Utilised
Unused amounts reversed
Unwinding of discount (Refer note 31)
Revision in estimates
Exchange differences
As at 31 March 2021
Restoration,
rehabilitation and
environmental
costs (Refer c)
2,454
69
(14)
-
96
(50)
122
2,677
270
(2)
(24)
72
(12)
21
3,002
c) Restoration, rehabilitation and environmental costs
The provisions for restoration, rehabilitation and environmental liabilities represent the management’s best estimate
of the costs which will be incurred in the future to meet the Group’s obligations under existing Indian, Australian,
Namibian, South African and Irish law and the terms of the Group’s exploration and other licences and contractual
arrangements.
Within India, the principal restoration and rehabilitation provisions are recorded within Oil & Gas business where a
legal obligation exists relating to the oil and gas fields, where costs are expected to be incurred in restoring the site of
production facilities at the end of the producing life of an oil field. The Group recognises the full cost of site restoration
as a liability when the obligation to rectify environmental damage arises.
These amounts are calculated by considering discount rates within the range of 2% to 10%, and become payable on
closure of mines and are expected to be incurred over a period of one to thirty years . The lower range of discount rate
is at Cairn India & Zinc International operations in Ireland and higher range is at Zinc International operations in African
Countries.
268
184
2,677
54
3,183
(` in crores)
Others
(Refer d)
52
2
-
-
-
-
-
54
2
-
-
-
-
-
56
452
453
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is
caused by the development or ongoing production from a producing field.
d) Other provisions
Other provisions include provision for disputed cases and claims.
24 OTHER LIABILITIES
Particulars
Amount payable to owned
post – employment benefit
trust (Refer note 40)
Other Statutory Liabilities a
Deferred government grants b
Advance from customer c
Advance from related party
Other liabilities
Total
As at 31 March 2021
As at 31 March 2020
Non-current
Current
Total
Non-current
Current
-
32
32
-
28
-
4,327
-
-
-
4,327
3,144
229
6,233
-
184
9,822
3,144
4,556
6,233
-
184
14,149
-
4,399
168
-
3
4,570
3,155
213
7,887
21
169
11,473
(` in crores)
Total
28
3,155
4,612
8,055
21
172
16,043
a)
b)
c)
Statutory liabilities mainly includes contribution to Provident fund, ESIC, withholding taxes, goods & services tax, VAT, service tax etc.
Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme and
SEZ scheme on purchase of property, plant and equipment accounted for as government grant and being amortised over the useful life
of such assets.
Advance from customers are contract liabilities to be settled through delivery of goods. The amount of such balances as on 01
April 2019: `9,196 crores. During the current year, the Group has refunded `5 crores (FY2019-20 `650 crores) to the customers and
recognised revenue of `7,878 crores (FY2019-20: `8,489 crores) out of such opening balances. All other changes are either due to
receipt of fresh advances or exchange differences.
25 REVENUE FROM OPERATIONS
Particulars
Sale of products
Sale of services
Revenue from contingent rents
Total
Year ended
31 March 2021
85,124
224
1,515
86,863
(` in crores)
Year ended
31 March 2020
81,656
216
1,673
83,545
a)
Revenue from sale of products and from sale of
services for the year ended 31 March 2021 includes
revenue from contracts with customers of `85,544
crores (31 March 2020: `81,896 crores) and a net loss
on mark-to-market of `196 crores (31 March 2020:
`1,300 crores) on account of gains/losses relating
to sales that were provisionally priced as at 31 March
2020 with the final price settled in the current year,
gains/losses relating to sales fully priced during the
year, and marked to market gains/losses relating to
sales that were provisionally priced as at 31 March
2021.
b)
Government of India (GoI) vide Office Memorandum
(“OM”) No. O-19025/10/2005-ONG-DV dated
01 February 2013 allowed for Exploration in the
Mining Lease Area after expiry of Exploration
period and prescribed the mechanism for recovery
of such Exploration Cost incurred. Vide another
Memorandum dated 24 October 2019, GoI clarified
that all approved Exploration costs incurred
on Exploration activities, both successful and
unsuccessful, are recoverable in the manner as
prescribed in the OM and as per the provisions of
PSC. Accordingly, during the previous year, the
Group had recognised revenue of `1,276 crores, for
past exploration costs, through increased share in
the joint operations revenue as the Group believes
that cost recovery mechanism prescribed under
OM for profit petroleum payable to GOI is not
applicable to its Joint operation partner, view which
454
< BACK TO CONTENTS
is also supported by an independent legal opinion.
However, the Joint operation partner carries a
different understanding and the matter is
pending resolution.
c)
Majority of the Group’s sales are against advance
or are against letters of credit/cash against
documents/guarantees of banks of national
standing. Where sales are made on credit, the
amount of consideration does not contain any
significant financing component as payment terms
are within three months.
As per the terms of the contract with its customers,
either all performance obligations are to be
completed within one year from the date of such
contracts or the Group has a right to receive
consideration from its customers for all completed
26 OTHER OPERATING INCOME
Particulars
Export incentives
Scrap sales
Miscellaneous income
Total
27 OTHER INCOME
Particulars
Net gain on investment measured at FVTPL
Interest income from investments measured at FVTPL
Interest income from financial assets at amortised cost
- Bank deposits
- Loans (Refer note 40)
- Others
Interest on income tax refund
Dividend Income from
- financial assets at FVTPL
- financial assets at FVOCI
Profit on sale of assets
Deferred government grant income (Refer note 24)
Miscellaneous income
Total
performance obligations. Accordingly, the Group
has availed the practical expedient available under
paragraph 121 of Ind AS 115 and dispensed with the
additional disclosures with respect to performance
obligations that remained unsatisfied (or partially
unsatisfied) at the balance sheet date. Further,
since the terms of the contracts directly identify
the transaction price for each of the completed
performance obligations, in all material respects,
there are no elements of transaction price which
have not been included in the revenue recognised in
the financial statements.
Further, there is no material difference between the
contract price and the revenue from contract with
customers.
Year ended
31 March 2021
303
527
328
1,158
Year ended
31 March 2021
934
478
565
629
351
80
1
2
75
229
77
3,421
(` in crores)
Year ended
31 March 2020
409
316
177
902
(` in crores)
Year ended
31 March 2020
558
1,015
218
2
367
29
48
4
-
205
64
2,510
455
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
28 CHANGES IN INVENTORIES OF FINISHED GOODS AND WORK-IN-PROGRESS*
Particulars
Opening Stock:
Finished Goods
Work-in-Progress
Add: Foreign exchange translation
Add: Acquired as part of business combination
Add: Capitalisation
Less: Closing Stock
Finished Goods
Work-in-Progress
Sub-total
Total
* Inventories include goods-in-transit
29 EMPLOYEE BENEFITS EXPENSEA
Particulars
Salaries and Wages
Share based payments (Refer note 30)
Contributions to provident and other funds (Refer note 31)
Staff welfare expenses
Less: Cost allocated/directly booked in joint ventures
Total
(a) net of capitalisation of `127 crores (31 March 2020: `159 crores).
30 SHARE BASED PAYMENTS
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
1,270
3,323
4,593
40
23
4
855
3,013
3,868
792
792
1,438
2,527
3,965
(6)
-
-
1,270
3,323
4,593
(634)
1,017
Year ended
31 March 2021
2,895
60
208
228
(530)
2,861
(` in crores)
Year ended
31 March 2020
2,760
73
173
242
(576)
2,672
< BACK TO CONTENTS
Options granted during the year ended 31 March 2021 includes business performance based, sustained individual
performance based, management discretion and fatality multiplier based stock options. Business performances will be
measured using Volume, Cost, Net Sales Realisation, EBITDA, ECG & Carbon footprint or a combination of these for the
respective business/SBU entities.
Options granted during the year ended 31 March 2020 includes business performance based, sustained individual
performance based and market performance based stock options. Business performances will be measured using
Volume, Cost, Net Sales Realisation, EBITDA, free cash flow or a combination of these for the respective business/SBU
entities.
The exercise price of the options is `1 per share and the performance period is three years, with no re-testing being
allowed.
The details of share options for the year ended 31 March 2021 is presented below:
Financial Year
of Grant
Exercise Period
2016-17
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
2020-21
2020-21
15 December 2019 –
14 June 2020
01 September 2020 –
28 February 2021
16 October 2020 –
15 April 2021
01 November 2021 –
30 April 2022
Cash settled
29 November 2022 –
28 May 2023
Cash settled
06 November 2023 –
05 May 2024
Cash settled
Options
outstanding
01 April 2020
10,68,516
70,27,925
11,126
1,14,20,046
10,69,156
1,58,81,330
Options
granted
during the
year
-
-
-
-
-
-
18,96,700
-
-
1,27,11,112
Options
transferred
rom Parent/
fellow
subsidiaries
-
-
-
-
-
-
-
Options
forfeited
during the
year
Options
exercised
during the
year*
Options
expired
during the
year
Options
outstanding
31 March 2021
Options
exercisable
31 March
2021
8,648
10,59,868
55,14,169
11,36,816
11,126
15,07,806
3,40,300
23,09,052
10,19,249
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,76,940
3,76,940
-
99,12,240
7,28,856
1,35,72,278
8,77,451
1,27,11,112
-
-
-
-
-
-
8,80,000
3,83,74,799 1,35,91,112
-
-
-
- 1,07,10,350
-
21,96,684
-
-
8,80,000
3,90,58,877
-
3,76,940
The details of share options for the year ended 31 March 2020 is presented below:
The Company offers equity based and cash based option plans to its employees, officers and directors through the
Company's stock option plan introduced in 2016 and Cairn India's stock option plan now administered by the Company
pursuant to merger with the Company.
The Vedanta Limited Employee Stock Option Scheme (ESOS) 2016
The Company introduced an Employee Stock Option Scheme 2016 (“ESOS”), which was approved by the Vedanta
Limited shareholders to provide equity settled incentive to all employees of the Company including subsidiary
companies. The ESOS scheme includes tenure based, business performance based (EBITDA) and market performance
based stock options. The maximum value of options that can be awarded to members of the wider management group
is calculated by reference to the grade average cost-to-company ("CTC") and individual grade of the employee. The
performance conditions attached to the option is measured by comparing Company’s performance in terms of Total
Shareholder Return ("TSR") over the performance period with the performance of two group of comparator companies
(i.e. Indian and global comparator companies) defined in the scheme. The extent to which an option vests will depend
on the Company's TSR rank against a group or groups of peer companies at the end of the performance period and
as moderated by the Remuneration Committee. The ESOS schemes are administered through VESOS trust and have
underlying Vedanta Limited equity shares.
Financial Year
of Grant
Exercise Period
2016-17
2017-18
2017-18
2017-18
2018-19
2018-19
2019-20
2019-20
15 December 2019 –
14 June 2020
01 September 2020 –
28 February 2021
16 October 2020 –
15 April 2021
01 November 2020 –
30 April 2021
01 November 2021 –
30 April 2022
Cash settled
29 November 2023 –
28 May 2024
Cash settled
Options
outstanding
01 April 2019
65,08,226
82,74,393
11,126
27,638
1,35,66,200
Options
granted
during the
year
-
-
-
-
-
Options
transferred
rom Parent/
fellow
subsidiaries
-
Options
forfeited
during the
year
Options
exercised
during the
year*
Options
expired
during the
year
Options
outstanding
31 March
2020
Options
exercisable
31 March
2020
48,19,269
6,20,441
10,68,516
10,68,516
-
12,46,468
-
-
-
27,638
-
21,46,154
-
-
-
-
70,27,925
11,126
-
- 1,14,20,046
-
10,69,156
- 1,58,81,330
-
-
-
-
-
-
-
-
-
-
-
-
10,47,660
-
-
1,67,13,640
2,11,170
-
1,89,674
8,32,310
20,37,690
2,94,35,243 1,87,51,330
-
-
2,11,170
1,40,990
94,02,503
-
6,20,441
-
18,96,700
- 3,83,74,799
-
10,68,516
456
457
*excludes 58,420 options exercised during the year regarding which the transaction could not be completed before 31 March 2020 and hence,
the corresponding shares were were not transferred to the concerned employees.
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements The fair value of all options has been determined at the
date of grant of the option allowing for the effect of any
market-based performance conditions. This fair value,
adjusted by the Group’s estimate of the number of
options that will eventually vest as a result of non-market
conditions, is expensed over the vesting period.
Business Performance-Based and Sustained Individual
Performance-Based Options:
The fair values of stock options following these types
of vesting conditions have been estimating using the
Black-Scholes-Merton Option Pricing model. The value
arrived at under this model has been then multiplied by
the expected % vesting based on business performance
conditions (only for business performance-based
options) and the expected multiplier on account of
sustained individual performance (for both type of
options). The inputs used in the Black-Scholes-Merton
Option Pricing model include the share price considered
as of the valuation date, exercise price as per the scheme/
plan of the options, expected dividend yield (estimated
based on actual/expected dividend trend of the
Company), expected tenure (estimated as the remaining
vesting period of the options), the risk-free rate
(considered as the zero coupon yield as of the valuation
date for a term commensurate with the expected tenure
of the options) and expected volatility (estimated based
on the historical volatility of the return in company’s
share prices for a term commensurate with the expected
tenure of the options). The exercise period of 6 months
post vesting period has not been considered as the
options are expected to be exercised immediately post
the completion of the vesting period.
Total Shareholder Returns-Based Options:
The fair values of stock options following this type of
vesting condition has been estimated using the Monte
Carlo Simulation method. This method has been used
to simulate the expected share prices for Vedanta
Limited and the companies of the comparator group
over the vesting period of the options. Based on the
simulated prices, the expected pay-off at the end of
the vesting period has been estimated and present
valued to the valuation date. Further, based on the
simulated share prices and expected dividends the
relative rank of Vedanta Limited’s share price return has
been estimated vis-à-vis the Indian and Global Group
of the comparator group. This rank has been used to
estimate expected % vesting of the options under this
type of vesting condition. The inputs to the monte carlo
simulation method include expected tenure (estimated
as the remaining vesting period of the options), the
risk-free rate (considered as the zero coupon yield as
of the valuation date for a term commensurate with
the expected tenure of the options), expected dividend
yield (estimated based on the actual dividend trend of
the companies), expected volatility (estimated based on
the historical volatility of the return in the Company’s
share prices for a term commensurate with the expected
tenure of the options). The exercise period of 6 months
post the vesting period has not been considered as the
options are expected to be exercised immediately post
the completion of the vesting period.
The assumptions used in the calculations of the charge in respect of the ESOS options granted during the year ended
31 March 2021 and 31 March 2020 are set out below:
Particulars
Number of Options
Exercise Price
Share Price at the date of grant
Contractual Life
Expected Volatility
Expected option life
Expected dividends
Risk free interest rate
Expected annual forfeitures
Fair value per option granted (Non-market performance based)
Fair value per option granted (Market performance based)
Year ended
31 March 2021
ESOS 2020
Year ended
31 March 2020
ESOS 2019
Cash settled – 8,80,000
equity settled –
1,27,11,112
`1
`228.75
2 years and 7 months
49.28%
2 years and 7 months
6.80%
4.84%
10% p.a.
150.73
NA
Cash settled – 20,37,690
Equity settled –
1,67,13,640
`1
`144.60
3 years
36.64%
3 years
7.96%
5.68%
10% p.a.
`102.30
`72.12
Weighted average share price at the date of exercise of stock options was `131.08 (31 March 2020: `126.02)
< BACK TO CONTENTS
The weighted average remaining contractual life for the share options outstanding was 2.03 years (31 March 2020: 2.28
years).
The Group recognised total expenses of `58 crores (31 March 2020 `75 crores) related to equity settled share-based
payment transactions for the year ended 31 March 2021. The total expense recognised on account of cash settled share
based plan during the year ended 31 March 2021 is `6 crores (31 March 2020: `2 crores) and the carrying value of cash
settled share based compensation liability as at 31 March 2021 is `7 crores (31 March 2020: 1 crores).
Employee stock option plans of erstwhile Cairn India Limited:
The Company has provided CIESOP share based payment scheme to its employees.
CIESOP plan
There are no specific vesting conditions under CIESOP plan other than completion of the minimum service period of
3 years from the date of grant. Phantom options are exercisable proportionate to the period of service rendered by the
employee subject to completion of one year. The exercise period is 7 years from the vesting date.
Details of employees stock option plans is presented below:
CIESOP Plan
Outstanding at the beginning of the year
Granted during the year
Expired during the year
Exercised during the year
Forfeited/cancelled during the year
Outstanding at the end of the year
Exercisable at the end of the year
Scheme
The details of exercise price for stock options outstanding as at
31 March 2021 are:
CIESOP Plan
The details of exercise price for stock options outstanding as at
31 March 2020 are:
CIESOP Plan
Year ended 31 March 2021
Year ended 31 March 2020
Number of options
53,41,740
Nil
10,82,229
Nil
9,44,337
33,15,174
33,15,174
Weighted average
exercise price in `
288.2
NA
291.3
NA
288.0
287.3
287.3
Number of options
64,77,059
Nil
6,58,663
Nil
4,76,656
53,41,740
53,41,740
Weighted average
exercise price in `
279.2
NA
200.1
NA
288.1
288.2
288.2
Range of exercise
price in `
Weighted average
remaining
contractual life of
options (in years)
Weighted average
exercise price in `
286.85-287.75
286.85-291.25
0.80
1.46
287.3
288.2
The Group has awarded certain cash settled share based options indexed to Parents' shares (Vedanta Resources
Limited shares) and shares of any of its subsidiaries. The total expense recognised on account of cash settled share
based plan during the year ended 31 March 2021 is `22 crores (31 March 2020: `21 crores) and the carrying value of cash
settled share based compensation liability as at 31 March 2021 is `86 crores (31 March 2020: `51 crores).
Out of the total expense of `86 crores (31 March 2020: `98 crores) pertaining to equity settled and cash settled options
for the year ended 31 March 2021 the Group has capitalised `26 crores (31 March 2020: `25 crores) expense for the year
ended 31 March 2021.
31 EMPLOYEE BENEFIT PLANS
The Group participates in defined contribution and benefit plans, the assets of which are held (where funded) in
separately administered funds.
For defined contribution plans the amount charged to the consolidated statement of profit and loss is the total amount
of contributions payable in the year.
458
459
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
For defined benefit plans, the cost of providing benefits
under the plans is determined by actuarial valuation
separately each year for each plan using the projected
unit credit method by independent qualified actuaries as
at the year end. Remeasurement gains and losses arising
in the year are recognised in full in other comprehensive
income for the year.
Defined contribution plans
i)
The Group contributed a total of `119 crores and `84 crores for the year ended 31 March 2021 and 31 March 2020
respectively to the following defined contribution plans.
Particulars
Employer’s contribution to recognised provident fund and family pension fund
Employer’s contribution to superannuation
Employer’s contribution to National Pension Scheme
Year ended
31 March 2021
98
21
0
119
(` in crores)
Year ended
31 March 2020
63
21
-
84
Indian pension plans
Central recognised provident fund
In accordance with the ‘The Employee's Provident Funds
and Miscellaneous Provisions Act, 1952’, employees are
entitled to receive benefits under the Provident Fund.
Both the employee and the employer make monthly
contributions to the plan at a predetermined rate (12%
for 2021 and 2020) of an employee’s basic salary. All
employees have an option to make additional voluntary
contributions. These contributions are made to the fund
administered and managed by the Government of India
(GOI) or to independently managed and approved funds.
The Group has no further obligations under the fund
managed by the GOI beyond its monthly contributions
which are charged to the consolidated statement of profit
and loss in the year they are incurred.
Family pension fund
The Pension Fund was established in 1995 and is managed
by the Government of India. The employee makes no
contribution to this fund but the employer makes a
contribution of 8.33% of salary each month subject to a
specified ceiling per employee. This is provided for every
permanent employee on the payroll.
At the age of superannuation, contributions ceases
and the individual receives a monthly payment based
on the level of contributions through the years, and on
their salary scale at the time they retire, subject to a
maximum ceiling of salary level. The Government funds
these payments, thus the Group has no additional liability
beyond the contributions that it makes, regardless of
whether the central fund is in surplus or deficit.
Superannuation
Superannuation, another pension scheme, is applicable
only to executives above certain grade. However, in case
of the oil & gas business (applicable from the second
year of employment) and Iron Ore Segment, the benefit
is applicable to all executives. Vedanta Limited and
each relevant Indian subsidiary holds a policy with Life
Insurance Corporation of India (“LIC”), to which each
of these entities contributes a fixed amount relating to
superannuation and the pension annuity is met by LIC
as required, taking into consideration the contributions
made. The Group has no further obligations under the
scheme beyond its monthly contributions which are
charged to the consolidated statement of profit and loss
in the year they are incurred.
National Pension Scheme
National Pension Scheme is a retirement savings
account for social security and welfare applicable for
executives covered under the superannuation benefit
of Vedanta Limited and each relevant Indian subsidiary,
on a choice basis. It was introduced to enable employees
to select the treatment of superannuation component
of their fixed salaries and avail the benefits offered by
National Pension Scheme launched by Government of
India. Vedanta Limited and each relevant entity holds
a corporate account with one of the pension fund
managers authorized by the Government of India to
which each of the entity contributes a fixed amount
relating to superannuation and the pension annuity will be
met by the fund manager as per rules of National Pension
Scheme. The Group has no further obligations under
the scheme beyond its monthly contributions which are
charged to the consolidated statement of profit and loss
in the year they are incurred.
Australian pension scheme
The Group also participates in defined contribution
superannuation schemes in Australia. The contribution of
a proportion of an employee’s salary in a superannuation
fund is a compulsory legal requirement in Australia. The
employer contributes, into the employee’s fund of choice,
9.50% of an employee’s gross remuneration where
the employee is covered by an industrial agreement
460
< BACK TO CONTENTS
and 12.50% of the basic remuneration for all other
employees. All employees have an option to make
additional voluntary contributions. The Group has no
further obligations under the scheme beyond its monthly
contributions which are charged to the consolidated
statement of profit and loss in the year they are incurred.
Skorpion Zinc Provident Fund, Namibia
The Skorpion Zinc Provident Fund is a defined
contribution fund and is compulsory to all full time
employees under the age of 60. The Group contribution
to the fund is a fixed percentage of 9% per month of
pensionable salary, whilst the employee contributes 7%
with the option of making additional contributions, over
and above the normal contribution, up to a maximum
of 12%.
Normal retirement age is 60 years and benefit payable is
the member’s fund credit which is equal to all employer
and employee contributions plus interest. The same
applies when an employee resigns from Skorpion Zinc.
The Fund provides disability cover which is equal to the
member’s fund credit and a death cover of two times
annual salary in the event of death before retirement.
The Group has no additional liability beyond the
contributions that it makes. Accordingly, this scheme has
been accounted for on a defined contribution basis and
contributions are charged directly to the consolidated
statement of profit and loss in the year they are incurred.
funds is to provide retirement and death benefits to all
eligible employees.
Group contributes at a fixed percentage of 10.5% for up
to supervisor grade and 15% for others.
Membership of both funds is compulsory for all
permanent employees under the age of 60.
The Group has no additional liability beyond the
contributions that it makes. Accordingly, this scheme has
been accounted for on a defined contribution basis and
contributions are charged directly to the consolidated
statement of profit and loss in the year they are incurred.
ii) Defined benefit plans
(a) Contribution to provident fund trust (the “trusts”)
of Iron ore division, Bharat Aluminium Company Limited
(BALCO), Hindustan Zinc Limited (HZL), Sesa Resources
Limited (SRL) and Sesa Mining Corporation Limited
(SMCL)
The provident funds of Iron ore division, BALCO, HZL,
SRL and SMCL are exempted under Section 17 of The
Employees Provident Fund and Miscellaneous Provisions
Act, 1952. Conditions for grant of exemption stipulates
that the employer shall make good deficiency, if any,
between the return guaranteed by the statute and actual
earning of the Fund. Based on actuarial valuation in
accordance with Ind AS 19 and Guidance note issued by
Institute of Actuaries of India for interest rate guarantee
of exempted provident fund liability of employees, there
is no interest shortfall that is required to be met by Iron
ore division, BALCO, HZL, SRL and SMCL as of 31 March
2021 and 31 March 2020. Having regard to the assets of
the fund and the return on the investments, the Group
does not expect any deficiency in the foreseeable future.
Black Mountain (Pty) Limited, South Africa Pension and
Provident Funds
Black Mountain Mining (Pty) Ltd. has two retirement
funds, both administered by Alexander Forbes, a
registered financial service provider. The purpose of the
The Group contributed a total of `48 crores for the year ended 31 March 2021 and `47 crores for the year ended 31
March 2020 in relation to the independently managed and approved funds. The present value of obligation and the fair
value of plan assets of the trust are summarised below.
Particulars
Fair value of plan assets of trusts
Present value of defined benefit obligation
Net liability arising from defined benefit obligation
Percentage allocation of plan assets of the trust
Assets by category
Government Securities
Debentures/bonds
Equity
Money Market Instruments
Fixed deposits
Year ended
31 March 2021
2,421
(2,375)
NIL
Year ended
31 March 2021
63.19%
34.36%
1.63%
0.83%
0.00%
(` in crores)
Year ended
31 March 2020
2,344
(2,299)
NIL
(` in crores)
Year ended
31 March 2020
61.68%
36.66%
1.65%
0.00%
0.00%
461
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
The remeasurement loss of `6 crores and `152 crores
have been charged to Other Comprehensive Income
(OCI) during the year ended 31 March 2021 and 31 March
2020 respectively.
(b) Post-Retirement Medical Benefits:
The Group has a scheme of medical benefits for
employees at BMM and BALCO subsequent to their
retirement on completion of tenure including retirement
on medical grounds and voluntary retirement on
contributory basis. The scheme includes employee’s
spouses as well. Based on an actuarial valuation
conducted as at year-end, a provision is recognised in
full for the benefit obligation. The obligation relating to
post-retirement medical benefits as at 31 March 2021 was
`86 crores (31 March 2020: `79 crores). The obligation
under this plan is unfunded. The Group considers these
amounts as not material and accordingly has not provided
further disclosures as required by Ind AS 19 ‘Employee
benefits’. The current service cost for the year ending
31 March 2021 of `1 crores (31 March 2020: `1 crores)
has been recognised in consolidated statement of profit
and loss. The remeasurement (gains)/losses and net
interest on the obligation of post-retirement medical
benefits of `2 crores gain (31 March 2020: `14 crores
loss) and `7 crores (31 March 2020: `6 crores) for the
year ended 31 March 2021 have been recognised in other
comprehensive income and finance cost respectively.
(c) Other Post-employment Benefits:
India – Gratuity plan
In accordance with the Payment of Gratuity Act of 1972,
Vedanta Limited and its Indian subsidiaries contribute to a
defined benefit plan (the “Gratuity Plan”) covering certain
categories of employees. The Gratuity Plan provides a
lump sum payment to vested employees at retirement,
disability or termination of employment being an amount
based on the respective employee’s last drawn salary and
the number of years of employment with the Group.
Based on actuarial valuations conducted as at year end
using the projected unit credit method, a provision is
recognised in full for the benefit obligation over and above
the funds held in the Gratuity Plan. For entities where
the plan is unfunded, full provision is recognised in the
consolidated balance sheet.
The iron ore and oil & gas division of Vedanta Limited,
SRL, SMCL, HZL and FACOR have constituted a trust
recognised by Income Tax Authorities for gratuity to
employees and contributions to the trust are funded with
Life Insurance Corporation of India (LIC), ICICI Prudential
Life Insurance Company Limited and HDFC Life Insurance
Company Limited.
Principal actuarial assumptions
Principal actuarial assumptions used to determine the present value of the Other post-employment benefit Plan
obligation are as follows:
Particulars
Discount rate
Expected rate of increase in compensation level of covered employees
Mortality table
Amount recognised in the consolidated balance sheet consists of:
Particulars
Fair value of plan assets
Present value of defined benefit obligations
Net liability arising from defined benefit obligation
Year ended
31 March 2021
6.90%
2%-15%
IALM (2012-14)
Year ended
31 March 2020
6.80%
2%-15%
IALM (2012-14)
Year ended
31 March 2021
401
(576)
(175)
(` in crores)
Year ended
31 March 2020
442
(631)
(189)
Amounts recognised in consolidated statement of profit and loss in respect of Other post-employment benefit plan are
as follows:
Particulars
Current service cost
Net interest cost
Components of defined benefit costs recognised in consolidated statement of profit
and loss
462
Year ended
31 March 2021
40
13
53
(` in crores)
Year ended
31 March 2020
41
15
56
< BACK TO CONTENTS
Amounts recognised in other comprehensive income in respect of Other post-employment benefit plan are as follows:
Particulars
Re-measurement of the net defined benefit obligation:-
Actuarial losses arising from changes in financial assumptions
Actuarial (gains)/losses arising from experience adjustments
Actuarial gains arising from changes in demographic assumptions
Actuarial losses on plan assets (excluding amounts included in net interest cost)
Components of defined benefit costs recognised in Other comprehensive income
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
1
(10)
-
6
(3)
28
16
(1)
1
44
The movement of the present value of the Other post-employment benefit plan obligation is as follows:
Particulars
Opening balance
Acquired in business combination
Current service cost
Benefits paid
Interest cost
Actuarial losses/(gains) arising from changes in assumptions
Closing balance
Year ended
31 March 2021
631
18
40
(148)
44
(9)
576
The movement in the fair value of Other post-employment benefit plan assets is as follows:
Particulars
Opening balance
Acquired in business combination
Contributions received
Benefits paid
Re-measurement gain/(loss) arising from return on plan assets
Interest income
Closing balance
Year ended
31 March 2021
442
16
18
(100)
(6)
31
401
(` in crores)
Year ended
31 March 2020
589
-
41
(87)
45
43
631
(` in crores)
Year ended
31 March 2020
387
-
86
(60)
(1)
30
442
The above plan assets have been invested in the qualified insurance policies.
The actual return on plan assets was `25 crores for the year ended 31 March 2021 and `29 crores for the year ended 31
March 2020.
The weighted average duration of the defined benefit obligation is 14 years and 14.3 years as at 31 March 2021 and 31
March 2020 respectively.
The Group expects to contribute `52 crores to the funded defined benefit plans during the year ending 31 March 2022.
Sensitivity analysis for Defined Benefit Plan
Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined
benefit obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the
reporting period while holding all other assumptions constant.
463
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
Particulars
Discount rate
Increase by 0.50%
Decrease by 0.50%
Expected rate of increase in compensation level of covered employees
Increase by 0.50%
Decrease by 0.50%
(` in crores)
Increase/(Decrease) in defined
benefit obligation
Year ended
31 March 2021
Year ended
31 March 2020
(21)
23
21
(20)
(21)
23
20
(20)
The above sensitivity analysis may not be representative
of the actual benefit obligation as it is unlikely that the
change in assumptions would occur in isolation of one
another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present
value of defined benefit obligation has been calculated
using the projected unit credit method at the end of
reporting period, which is the same as that applied in
calculating the defined obligation liability recognised in
the consolidated balance sheet.
Risk analysis
Group is exposed to a number of risks in the defined
benefit plans. Most significant risks pertaining to defined
benefit plans and management estimation of the impact
of these risks are as follows:
Investment risk
Most of the Indian defined benefit plans are funded with
Life Insurance Corporation of India (LIC), ICICI Prudential
Life (ICICI) and HDFC Standard Life. Group does not have
any liberty to manage the fund provided to LIC, ICICI
prudential and HDFC Standard Life.
The present value of the defined benefit plan obligation is
calculated using a discount rate determined by reference
to Government of India bonds for Group’s Indian
operations. If the return on plan asset is below this rate, it
will create a plan deficit.
32 FINANCE COST
Particulars
Interest expense on financial liabilities at amortised cost b
Other finance costs
Net interest on defined benefit arrangement
Unwinding of discount on provisions (Refer note 23)
Exchange difference regarded as an adjustment to borrowing cost
Less: Capitalisation of finance cost/borrowing cost a (Refer note 6)
Less: Cost allocated/directly booked in joint ventures
Total
464
Interest risk
A decrease in the interest rate on plan assets will increase
the net plan obligation.
Longevity risk/Life expectancy
The present value of the defined benefit plan obligation
is calculated by reference to the best estimate of the
mortality of plan participants both during and at the end
of the employment. An increase in the life expectancy of
the plan participants will increase the plan obligation.
Salary growth risk
The present value of the defined benefit plan obligation
is calculated by reference to the future salaries of
plan participants. An increase in the salary of the plan
participants will increase the plan obligation.
# Code on Social Security, 2020
The Code on Social Security, 2020 (‘Code’) relating
to employee benefits during employment and post-
employment benefits received Presidential assent in
September 2020. The Code has been published in the
Gazette of India. However, the date on which the Code will
come into effect has not been notified and the final rules/
interpretation have not yet been issued. The Group will
assess the impact of the Code when it comes into effect
and will record any related impact in the period the Code
becomes effective.
Year ended
31 March 2021
5,185
238
19
72
15
(316)
(3)
5,210
(` in crores)
Year ended
31 March 2020
5,617
261
21
96
7
(1,017)
(8)
4,977
< BACK TO CONTENTS
a)
b)
Interest rate of 6.91 % (31 March 2020: 7.49%) was used to determine the amount of general borrowing costs eligible for capitalisation in
respect of qualifying asset for the year ended 31 March 2021.
Interest expense on lease liabilities for the year ended 31 March 2021 is `28 crores (31 March 2020: `25 crores)
33 OTHER EXPENSES
Particulars
Cess on crude oil
Royalty
Consumption of stores and spare parts
Share of expenses in producing oil and gas blocks
Repairs to Plant and equipment
Repairs to building
Repairs others
Carriage
Mine Expenses
Net loss on foreign currency transactions and translation
Other Selling Expenses
Insurance
Loss on sale/disposal of fixed asset (net)
Rent*
Rates and taxes
Exploration costs written off (Refer note 6)
Bad trade receivables and advances written off
Provision for doubtful advances/expected credit loss
Miscellaneous expenses
Less: Cost allocated/directly booked in joint ventures
Total
*Rent represents expense on short-term/low value leases.
34 EXCEPTIONAL ITEMS
Year ended
31 March 2021
1,743
3,090
2,387
2,118
2,357
161
161
1,600
2,064
65
18
219
-
47
58
7
12
296
4,358
(275)
20,486
(` in crores)
Year ended
31 March 2020
2,315
2,670
2,601
2,471
2,505
196
161
1,539
2,242
733
16
193
56
42
80
3
17
104
4,340
(305)
21,979
(` in crores)
Particulars
Capital work-in-progress written off and
impairment charge relating to property,
plant and equipment, exploration assets
(as applicable) and other assets in following
segments:
- Oil & gas a
- Copper c
- Aluminiumj
- Other segment b,k
Provision on receivables subject to
Litigation d,e
Revision of Renewable Purchase Obligation
pursuant to respective state electricity
regulation commission notifications f
Year ended 31 March 2021
Year ended 31 March 2020
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
-
-
(181)
(63)
(213)
-
-
63
22
18
-
-
(118)
(41)
(195)
(15,907)
(669)
-
(504)
(556)
6,197
234
-
77
93
(9,710)
(435)
-
(427)
(463)
95
(24)
71
168
(59)
109
465
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
Particulars
Provision for settlement of dispute
regarding environmental clearance h
Transaction costs paid to the ultimate
parent company on structured investment
sold in previous yeari
Interest income on claims based on
Supreme Court order g
Total
Year ended 31 March 2021
Year ended 31 March 2020
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
(` in crores)
75
(138)
(103)
-
-
-
-
-
-
(213)
(103)
-
-
-
-
82
(21)
61
(678)
154
(524)
(17,386)
6,521
(10,926)
During the year ended 31 March 2021 and 31 March
2020, the Group had recognised impairment charge
of Nil and `15,907 crores on its assets in the oil and
gas segment comprising of:
During the year ended 31 March 2020, impairment
charge of `15,150 crores relating to Rajasthan oil and
gas block (“RJ CGU”) triggered by the significant fall
in the crude oil prices. Of this charge, `14,113 crores
impairment charge had been recorded against
oil and gas producing facilities and `1,037 crores
impairment charge had been recorded against
exploration intangible assets under development.
For oil & gas assets, CGU's identified are on the basis
of a production sharing contract (PSC) level, as it is
the smallest group of assets that generates cash
inflows that are largely independent of the cash
inflows from other assets or group of assets.
The recoverable amount of the RJ CGU of `10,514
crores (US$1,405 million) was determined based
on the fair value less costs of disposal approach,
a level-3 valuation technique in the fair value
hierarchy, as it more accurately reflects the
recoverable amount based on our view of the
assumptions that would be used by a market
participant. This is based on the cash flows expected
to be generated by the projected oil and natural
gas production profiles up to the expected dates
of cessation of production sharing contract (PSC)/
cessation of production from each producing
field based on the current estimates of reserves
and risked resources. Reserves assumptions for
fair value less costs of disposal tests consider all
reserves that a market participant would consider
when valuing the asset, which are usually broader
in scope than the reserves used in a value-in-use
test. Discounted cash flow analysis used to calculate
fair value less costs of disposal uses assumption for
short-term oil price of US$38 per barrel for the next
one year and scales up to long-term nominal price of
US$57 per barrel three years thereafter derived from
a consensus of various analyst recommendations.
Thereafter, these have been escalated at a rate
of 2% per annum. The cash flows are discounted
using the post-tax nominal discount rate of 10.35%
derived from the post-tax weighted average cost
of capital after factoring the risks ascribed to the
successful implementation of key growth projects.
Additionally, in computing the recoverable value,
the effects of market participant’s response on
production sharing contract matters have also been
appropriately considered. Based on the sensitivities
carried out by the Group, change in crude price
assumptions by US$1/bbl and changes to discount
rate by 1% would lead to a change in recoverable
value by `337 crores (US$45 million) and `494 crores
(US$66 million) respectively.
(ii)
During the year ended 31 March 2020, impairment
charge of `225 crores relating to KG-ONN-2003/1
CGU mainly due to the reduction in crude oil
price forecast.
The recoverable amount of the CGU, `147 crores
(US$20 million) were determined based on fair
value less cost of disposal approach as described
in above paragraph. Discounted cash flow analysis
used to calculate fair value less costs of disposal
uses assumption for oil price as described in above
paragraph. The cash flows are discounted using the
post-tax nominal discount rate of 11.1% derived
from the post-tax weighted average cost of capital.
The sensitivities around change in crude price and
discount rate are not material to the
financial statements.
(iii)
During the year ended 31 March 2020, impairment
charge of `532 crores, in exploration block KG-
OSN-2009/3, were provided for as the Government
of India approval on extension and grant of excusable
delay is awaited for.
b)
During the year ended 31 March 2020, the Group
had recognised impairment charge of `504 crores
a)
(i)
466
< BACK TO CONTENTS
c)
d)
e)
on the assets of AvanStrate Inc (ASI) mainly due to
the significant changes in the market and economic
enviroment in which ASI operates leading to
decrease in demand and profitability in the glass
substrate business. The charge relates to ASI
business in Japan, Taiwan and Korea classified
in the 'others' segment. Given the significant
interdependence of these entities on each other,
these were considered as a single cash-generating
unit.
The net recoverable value of assets and liabilities had
been assessed at `1,536 crores based on the value
in use approach. Based on the sensitivities carried
out by the Group, decrease in volume assumptions
by 1% would lead to decrease in recoverable value by
`17 crores and increase in discount rate by 1% would
lead to a decrease in recoverable value by `48 crores.
Refer note 3(c)(A)(vii) for impairment in copper
segment.
f)
During the year ended 31 March 2020, a parcel of
land relating to the Iron Ore business having carrying
value of `349 crores were reclassified from freehold
land to other financial asset due to an ongoing legal
dispute relating to title of the land. Subsequently,
during the previous year, the financial asset were
fully provided for impairment and recognised under
exceptional items.
As at 31 March 2021, the Company and its
subsidiaries have an outstanding receivable
equivalent to `211 crores (net of provision of `423
crores) (31 March 2020: `437 crores (net of provision
of `207 crores)) from Konkola Copper Mines Plc
(KCM), predominantly regarding monies advanced
against future purchase of copper cathode/anode.
A provisional liquidator was appointed to manage
KCM’s affairs on 21 May 2019, after ZCCM
Investments Holdings Plc (“ZCCM”), an entity
majorly owned by the Government of Zambia and a
20.6% shareholder in KCM, filed a winding up petition
against KCM. KCM’s majority shareholder, Vedanta
Resources Holdings Limited (“VRHL”), and its parent
company, Vedanta Resources Limited (“VRL”), are
contesting the winding up petition in the Zambian
courts. The local Court of Appeal (“CAZ”) has
ruled in favour of VRHL/VRL, ordering a stay of the
winding up proceedings and referring the matter for
arbitration. In light of the orders from CAZ, VRL has
also filed an application in the High Court of Zambia,
asking for directions on the powers of the provision
liquidator and the matter was argued on March 30,
2021. The ruling has been reserved.
g)
VRHL and VRL had also commenced arbitration
proceedings against ZCCM with seat in
Johannesburg, South Africa, consistent with their
position that arbitration is the agreed dispute
resolution process. The procedural timetable
for the arbitration envisages an initial hearing of
prioritised issues commencing on 31 May 2021, with
the substantive dispute being heard in November
2021 and February 2022. Meanwhile, KCM has not
been supplying goods to the Group, which it was
supposed to as per the terms of the advance.
During the year, the Group has recognised
provisions for expected credit losses of `213
crores (31 March 2020: `207 crores) and based on
its assessment of the merits of the case backed by
legal opinions, the Group is of the view that VRL’s
contractual position is upheld and continues to be
strong on merits.
During the year, the Company has recomputed
its Renewable Power Obligation (RPO) pursuant
to Chhattisgarh State Electricity Regulatory
Commission (CSERC) notification dated 13 July
2020 (published on 22 July 2020) which clarified
that for Captive Power Plants commissioned before
01 April 2016, RPO should be pegged at the RPO
obligation percentage rates (both for solar and
non-solar) applicable for FY2015-16. Consequent to
the aforesaid notification, the Company's obligation
towards RPO relating to the period up to 31 March
2020 has been reversed to the extent of `95 crores
during this year.
During the previous year, the Company has
restated its Renewable Power Obligation (RPO)
liability pursuant to Odisha Electricity Regulatory
Commission (OERC) notification dated 31 December
2019 which clarified that for CPP’s commissioned
before 01 April 2016, RPO should be pegged at the
RPO obligation applicable for 2015-16. Based on the
notification, liability of Vedanta Limited Jharsuguda
and Lanjigarh plants have been revised and `168
crores reversal relating to previous years have
been recognised under exceptional items in the
previous year.
On the contempt petition filed by TSPL, the Hon’ble
Supreme Court of India vide its order dated 07
August 2019 allowed gross calorific value (GCV) on
as received basis (ARB) and actual cost of coal in the
Energy Charge Formula and directed Punjab State
Power Corporation Limited (PSPCL) to make the
payments within 8 weeks. Pursuant to the order,
PSPCL has paid `1,002 crores in September 2019
and October 2019. TSPL has booked an interest of
`140 crores due to the delay in receipt of payment as
467
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
per the Supreme Court order dated March 07, 2018
allowing the interest on delay in payment. Of this
interest `82 crores pertaining to period prior to 31
March 2019 is booked under exceptional items and
amount of `58 crores for the year ended 31 March
2020 was booked in Other income.
k)
h)
Refer note 3(c)(A)(x).
i)
j)
Refer note 40(M).
During the year ended 31 March 2021, the Company
has recognised a loss of `181 crores relating to
certain items of capital work-in-progress at the
35 TAX
aluminium operations, which are no longer expected
to be used.
During the year ended 31 March 2021, ESL Steel
Limited conducted a detailed physical verification
and evaluation of project equipment and material
being carried forward as capital work-in-progress at
a carrying value of `835 crores. Pending completion
of entire exercise, an interim provision of `63 crores
has been recognised relating to certain items of
capital work-in-progress, which are no longer
expected to be used.
(a) Tax charge/(credit) recognised in profit or loss (including on exceptional items)
Particulars
Current tax:
Current tax on profit for the year
Credit in respect of current tax for earlier years
Total Current Tax (a)
Deferred tax:
Reversal of temporary differences
Credit in respect of deferred tax for earlier years
Credit in respect of exceptional items (Refer note 34)
Deferred Tax (b)
Deferred Tax on distributable reserve of/dividend from subsidiary (c )
Total Deferred Tax [(d)=(b+c)]
Total income tax expense/(benefit) for the year (a+d)
Profit/(Loss) before tax
Effective income tax rate (%)
Tax expense/(benefit)
Particulars
Tax effect on exceptional items
Tax expense – others
Net tax expense/(benefit)
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
2,067
(1)
2,066
(598)
(3)
(154)
(755)
869
114
2,180
17,213
13%
1,791
(3)
1,788
(475)
(9)
(6,521)
(7,005)
1,701
(5,304)
(3,516)
(8,259)
43%
Year ended
31 March 2021
(154)
2,334
2,180
(` in crores)
Year ended
31 March 2020
(6,521)
3,005
(3,516)
(b)
A reconciliation of income tax expense/(credit) applicable to profit/(loss) before tax at the Indian statutory income
tax rate to recognise income tax expense for the year indicated are as follows:
Particulars
Profit/(Loss) before tax
Indian statutory income tax rate
Tax at statutory income tax rate
Disallowable expenses
468
Year ended
31 March 2021
17,213
34.944%
6,015
128
(` in crores)
Year ended
31 March 2020
(8,259)
34.944%
(2,886)
189
< BACK TO CONTENTS
Particulars
Non-taxable income
Tax holidays and similar exemptions
Effect of tax rate differences of subsidiaries operating at other tax rates
Deferred Tax on distributable reserve of/dividend from subsidiary
Unrecognised tax assets (net)**
Change in deferred tax balances due to change in tax law*
Capital Gains/Other Income subject to lower tax rate
Credit in respect of earlier years
Other permanent differences
Total
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
(123)
(771)
(326)
869
(3,193)
(335)
(176)
(4)
96
2,180
(141)
(501)
(107)
1,701
(70)
(1,912)
(273)
(12)
496
(3,516)
* Deferred tax for the year ended 31 March 2020 includes a credit of `1,774 crores on remeasurement of deferred tax balances as at 31 March
2019. Also refer note 3(c)(A)(ix).
**In June 2018, the Company acquired majority stake in ESL Steel Limited (“ESL”), which has since been focusing on operational turnaround.
Based on management’s estimate of future outlook, financial projections and requirements of Ind AS 12 – Income taxes, ESL has recognised
deferred tax assets of `3,184 crores during the year ended 31 March 2021.
Certain businesses of the Group within India are eligible
for specified tax incentives which are included in the
table above as tax holidays and similar exemptions. Most
of such tax exemptions are relevant for the companies
operating in India. These are briefly described as under:
The location based exemption
In order to boost industrial and economic development
in undeveloped regions, provided certain conditions are
met, profits of newly established undertakings located
in certain areas in India may benefit from tax holiday
under Section 80IC of the Income Tax Act, 1961. Such tax
holiday works to exempt 100% of the profits for the first
five years from the commencement of the tax holiday,
and 30% of profits for the subsequent five years. This
deduction is available only for units established up to 31
March 2012. However, such undertaking would continue
to be subject to the Minimum Alternative tax (‘MAT’).
In the current year, undertaking at Pantnagar, which is
part of Hindustan Zinc Limited (Zinc India), is the only unit
eligible for deduction at 30% of taxable profit.
The location based exemption: SEZ Operations
In order to boost industrial development and exports,
provided certain conditions are met, profits of
undertaking located in Special Economic Zone ('SEZ')
may benefit from tax holiday. Such tax holiday works to
exempt 100% of the profits for the first five years from
the commencement of the tax holiday, 50% of profits for
five years thereafter and 50% of the profits for further
five years provided the amount allowable in respect of
deduction is credited to Special Economic Zone
Re-Investment Reserve account. However, such
undertaking would continue to be subject to the Minimum
Alternative tax ('MAT').
The Group has setup SEZ Operations in its aluminium
division of Vedanta Limited (where no benefit has been
drawn).
Sectoral Benefit – Power Plants and Port Operations
To encourage the establishment of infrastructure
certain power plants and ports have been offered
income tax exemptions of up to 100% of profits and
gains for any ten consecutive years within the 15 year
period following commencement of operations subject
to certain conditions under Section 80IA of the Income
Tax Act, 1961. The Group currently has total operational
capacity of 8.4 Giga Watts (GW) of thermal based power
generation facilities and wind power capacity of 274
Mega Watts (MW) and port facilities. However, such
undertakings would continue to be subject to MAT
provisions.
The Group has power plants which benefit from such
deductions, at various locations of Hindustan Zinc
Limited (where such benefits has been drawn), Talwandi
Sabo Power Limited, Vedanta Limited and Bharat
Aluminium Company Limited (where no benefit has been
drawn).
The Group operates a zinc refinery in Export Processing
Zone, Namibia which has been granted tax exempt status
by the Namibian government.
In addition, the subsidiaries incorporated in Mauritius
are eligible for tax credit to the extent of 80% of the
applicable tax rate on foreign source income.
469
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
The total effect of such tax holidays and exemptions was `771 crores for the year ended 31 March 2021 (31 March 2020:
`501 crores)
(c) Deferred tax assets/liabilities
The Group has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents
accelerated tax relief for the depreciation of property, plant and equipment, the depreciation of mining reserves and
the fair value uplifts created on acquisitions, net of losses carried forward by the Group and unused tax credits in
the form of MAT credits carried forward in the Group. Significant components of Deferred tax (assets) and liabilities
recognised in the consolidated balance sheet are as follows:
For the year ended 31 March 2021
Significant components of Deferred
tax (assets) and liabilities
Opening
balance as
at 01 April
2020
Charged/
(credited) to
statement of
profit or loss
Charged/
(credited)
to other
comprehensive
income
Charged to
equity
Property, Plant and Equipment
Voluntary retirement scheme
Employee benefits
Fair valuation of derivative asset/
liability
Fair valuation of other asset/
liability
MAT credit entitlement
Unabsorbed depreciation and
business losses
Taxes on distributable reserve of
subsidiary
Other temporary differences
Total
9,182
(29)
(186)
(20)
279
(25)
(22)
9
970
(242)
(9,122)
(5,482)
862
784
1,582
(1,582)
(899)
(4,004)
51
114
For the year ended 31 March 2020
Significant components of Deferred
tax (assets) and liabilities
Property, Plant and Equipment
Voluntary retirement scheme
Employee benefits
Fair valuation of derivative asset/
liability
Fair valuation of other asset/
liability
MAT credit entitlement
Unabsorbed depreciation and tax
losses
Taxes on distributable reserve of
subsidiary
Other temporary differences
Total
Opening
balance as
at 01 April
2019
Charged/
(credited) to
statement
of profit or
loss
15,958
(40)
(120)
(45)
(6,783)
11
1
(7)
820
91
(10,321)
(4,560)
910
(922)
-
1,582
(683)
1,009
(187)
(5,304)
Deferred tax
on Acquisition
through
business
combination
(Refer Note 4)
50
-
-
-
Exchange
difference
transferred
to translation
of foreign
operation
172
-
(9)
-
(` in crores)
Closing
balance as
at 31 March
2021
9,683
(54)
(174)
(37)
-
-
-
-
10
60
(28)
701
3
-
-
(8,232)
(4,698)
-
(31)
107
(834)
(3,645)
-
-
11
(26)
1
25
-
-
35
46
-
-
32
-
-
-
-
-
-
32
Charged/
(credited) to other
comprehensive
income
Charged/
(credited) to
equity
Deferred tax
on Acquisition
through
business
combination
-
-
(71)
32
1
23
-
-
(58)
(73)
-
-
-
-
-
252
-
-
-
252
-
-
-
-
-
-
-
-
-
-
Exchange
difference
transferred
to translation
of foreign
operation
7
-
4
-
58
14
-
(` in crores)
Closing
balance as
at 31 March
2020
9,182
(29)
(186)
(20)
970
(9,122)
(5,482)
-
1,582
29
112
(899)
(4,004)
< BACK TO CONTENTS
Deferred tax assets and liabilities have been offset where they arise in the same taxing jurisdiction with a legal right to
offset current income tax assets against current income tax liabilities but not otherwise. Accordingly the net deferred
tax (assets)/liability has been disclosed in the Consolidated Balance Sheet as follows:
Particulars
Deferred tax assets
Deferred tax liabilities
Net Deferred tax (assets)/Liabilities
As at
31 March 2021
(5,860)
2,215
(3,645)
(` in crores)
As at
31 March 2020
(6,889)
2,885
(4,004)
Recognition of deferred tax assets on MAT credit entitlement is based on the respective legal entity's present
estimates and business plans as per which the same is expected to be utilised within the stipulated fifteen year period
from the date of origination (Refer note 3(c)(A)(vi)).
Deferred tax assets in the Group have been recognised to the extent there are sufficient taxable temporary differences
relating to the same taxation authority and the same taxable entity which are expected to reverse. For certain
components of the Group, deferred tax assets on carry forward unused tax losses have been recognised to the extent
of deferred tax liabilities on taxable temporary differences available. It is expected that any reversals of the deferred tax
liability would be offset against the reversal of the deferred tax asset at respective entities.
Unused tax losses/unused tax credit for which no deferred tax asset has been recognised amount to `10,153 crores and
`17,658 crores as at 31 March 2021 and 31 March 2020 respectively.
As at 31 March 2021
Unused tax losses/unused tax credit
Within one year
Unutilised business losses
Unabsorbed depreciation
Unutilised R&D credit
Total
As at 31 March 2020
197
10
-
207
Unused tax losses/unused tax credit
Within one year
Unutilised business losses
Unabsorbed depreciation
Unutilised R&D credit
Total
555
-
-
555
Greater than one
year, less than
five years
2,222
101
-
2,323
Greater than one
year, less than
five years
2,588
-
-
2,588
Greater than five
years
No expiry date
Total
(` in crores)
3,075
298
-
3,373
1,887
2,353
10
4,250
7,381
2,762
10
10,153
Greater than five
years
No expiry date
Total
(` in crores)
4,916
-
-
4,916
1,574
8,016
9
9,599
9,633
8,016
9
17,658
No deferred tax assets has been recognised on these unused tax losses/unused tax credit as there is no evidence that
sufficient taxable profit will be available in future against which these can be utilised by the respective entities.
MAT credits are taxes paid to Indian tax authorities which can be offset against future tax liabilities, subject to certain
restrictions, within a period of 15 years from the year of origination. The Group recognises MAT assets only to the
extent it expects to realise the same within the prescribed period.
Further, the Group had unused MAT credit amounting to `400 crores as at 31 March 2020. Such tax credits were not
been recognised on the basis that recovery is not probable in the foreseeable future. However, As per the amendments
to the tax laws in September, 2019, a new tax provision has been introduced whereby a company can claim the benefits
470
471
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements of reduced tax rates, provided it forgoes certain incentives/exemptions under Income Tax Act, 1961. One of the
subsidiaries of the group has opted for the same and foregoes the unrecognised MAT Credit for the earlier years.
Unrecognised MAT credit expires, if unutilised, based on the year of origination was as follows:
Year of Expiry
2022
2023
2024
2025
2026
2027
2028
2029
Total
As at
31 March 2021
-
-
-
-
-
-
-
-
-
(` in crores)
As at
31 March 2020
104
14
52
52
103
63
8
4
400
The Group has not recognised any deferred tax liabilities for taxes that would be payable on the Group’s share in
unremitted earnings of certain of its subsidiaries because the Group controls when the liability will be incurred and it is
probable that the liability will not be incurred in the foreseeable future. The amount of unremitted earnings are `32,240
crores and `33,618 crores as at 31 March 2021 and 31 March 2020 respectively.
(d) Non-current tax assets
Non-current tax assets of `2,748 crores (31 March 2020: `2,645 crores) mainly represents income tax receivable from
Indian tax authorities by Vedanta Limited relating to the refund arising consequent to the Scheme of Amalgamation
& Arrangement made effective in August 2013 pursuant to approval by the jurisdiction High Court and receivables
relating to matters in tax disputes in Group companies including tax holiday claim.
(e) The tax department had raised demands on account of remeasurement of certain tax incentives, as described
above, under Section 80IA and 80 IC of the Income tax Act. During the current year, based on the favourable orders
from Income Tax Appellate Tribunal relating to AY 09-10 to AY 12-13, the Commissioner of Income Tax (Appeals)
has allowed these claims for AY 14-15 to AY 15-16, which were earlier disallowed and has granted refund of amounts
deposited under protest. Against the Tribunal order, department had filed an appeal in Hon’ble Rajasthan High Court
in financial year 17-18 which is yet to be admitted. As per the view of external legal counsel, Department’s appeal seeks
re-examination of facts rather than raising any substantial question of law and hence it is unlikely that appeal will be
admitted by the High Court. Due to this there is a strong prima facie case that ITAT order will stand confirmed and
department’s appeal would be dismissed. The amount involved in this dispute as of 31 March 2021 is `11,271 crores (31
March 2020: `10,566 crores) plus applicable interest up to the date of settlement of the dispute.
< BACK TO CONTENTS
37 DISTRIBUTIONS MADE AND PROPOSED
Particulars
Amounts recognised as distributions to equity share holders:
Interim dividend (31 March 2021: `9.50/- per share, 31 March 2020: `3.90/- per share)
Dividend distribution tax (DDT) on above
Year ended
31 March 2021
(` in crores)
Year ended
31 March 2020
3,519
-
3,519
1,444
252
1,696
38 COMMITMENTS, CONTINGENCIES AND GUARANTEES
A) Commitments
The Group has a number of continuing operational and financial commitments in the normal course of business
including:
Exploratory mining commitments;
Oil & gas commitments;
Mining commitments arising under production sharing agreements; and
Completion of the construction of certain assets.
a)
Estimated amount of contracts remaining to be executed on capital accounts and not provided for:
Particulars
Oil & Gas sector
Cairn India
Aluminium sector
Lanjigarh Refinery (Phase II)
Jharsuguda 1.25 MTPA smelter
Zinc sector
Zinc India (mines expansion and smelter)
Gamsberg mining & milling project
Copper sector
Tuticorin Smelter 400 KTPA*
Others
Total
As at
31 March 2021
(` in crores)
As at
31 March 2020
1,555
1,188
463
362
94
2,995
1,872
8,529
3,360
1,573
414
912
131
2,791
1,611
10,792
As at
31 March 2021
(` in crores)
As at
31 March 2020
5,625
5,841
36 EARNINGS PER EQUITY SHARE (EPS)
*currently contracts are under suspension under the force majeure clause as per the contract.
Particulars
Profit/(Loss) after tax attributable to equity share holders for Basic and Diluted EPS A
Computation of weighted average number of shares (in crores)
Weighted average number of ordinary shares outstanding during the year
excluding shares acquired for ESOP for basic earnings per share
Effect of dilution:
Potential ordinary shares relating to share option awards *
Adjusted weighted average number of shares of the Company in issue
Basic earnings/(loss) per equity share (`)
Diluted earnings/(loss) per equity share (`)
Nominal Value per Share (in `)
B
C
A/B
A/C
(` in crores except otherwise stated)
ended
Year ended
31 March 2020
31 March 2021
(6,664)
11,602
370.42
370.26
2.33
372.75
31.32
31.13
1.00
2.12
370.26
(18.00)
(18.00)
1.00
b) Committed work programme (Other than capital commitment):
Particulars
Oil & Gas sector
Cairn India (OALP – New Oil and Gas blocks)
*Potential dilutive shares have been considered as anti dilutive for year ended 31 March 2020.
472
473
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
c) Other Commitments
(i)
Power Division of the Company has signed a long-
term power purchase agreement (PPA) with Gridco
Limited for supply of 25% of power generated from
the power station with additional right to purchase
power (5%/7%) at variable cost as per the conditions
referred to in PPA . The PPA has a tenure of twenty
five years, expiring in FY2037.
(ii)
TSPL has signed a long-term power purchase
agreement (PPA) with Punjab State Power
Corporation Limited (PSPCL) for supply of power
generated from the power plant. The PPA has tenure
of twenty five years, expring in FY2042.
B) Guarantees
The aggregate amount of indemnities and other
guarantees on which the Group does not expect any
material losses, was `6,281 crores (31 March 2020: `6,487
crores).
a)
b)
c)
d)
e)
Guarantees and bonds advanced to the customs
authorities in India of `648 crores relating to the
export and payment of import duties on purchases
of raw material and capital goods (31 March 2020:
`471 crores).
Guarantees issued for Group’s share of minimum
work programme commitments of `2,889 crores (31
March 2020: `2,906 crores).
Guarantees of `79 crores issued under bid bond (31
March 2020: `54 crores).
Bank guarantees of `115 crores (31 March 2020:
`115 crores) has been provided by the Group on
behalf of Volcan Investments Limited to Income tax
department, India as a collateral in respect of certain
tax disputes.
Other guarantees worth `2,550 crores (31 March
2020: `2,941 crores) issued for securing supplies of
materials and services, in lieu of advances received
from customers, litigation, for provisional valuation
of custom duty and also to various agencies,
suppliers and government authorities for various
purposes. The Group does not anticipate any liability
on these guarantees.
C) Export Obligations
The Indian entities of the Group have export obligations
of `2,165 crores (31 March 2020: `3,827 crores) on
account of concessional rates of import duty paid on
capital goods under the Export Promotion Capital Goods
Scheme and under the Advance Licence Scheme for the
import of raw material laid down by the Government
of India.
In the event of the Group’s inability to meet its
obligations, the Group’s liability would be `353 crores (31
March 2020: `607 crores) reduced in proportion to actual
exports, plus applicable interest.
The Group has given bonds of `1,775 crores (31 March
2020: `1,695 crores) to custom authorities against these
export obligations.
D) Contingent Liabilities
a)
Hindustan Zinc Limited (HZL): Department of
Mines and Geology
The Department of Mines and Geology of the State of
Rajasthan issued several show cause notices to HZL in
August, September and October 2006 aggregating `334
crores claiming unlawful occupation and unauthorised
mining of associated minerals other than zinc and lead at
HZL’s Rampura Agucha, Rajpura Dariba and Zawar mines
in Rajasthan during the period from July 1968 to March
2006. In response, HZL filed a writ petition against these
show cause notices before the High Court of Rajasthan in
Jodhpur. In October 2006, the High Court issued an order
granting a stay and restrained the Department of Mines
and Geology from undertaking any coercive measures
to recover the penalty. In January 2007, the High Court
issued another order granting the Department of Mines
and Geology additional time to file their reply and also
ordered the Department of Mines and Geology not
to issue any orders cancelling the lease. The State
Government filed for an early hearing application in the
High Court. The High Court has passed an order rejecting
the application stating that Central Government should
file their replies. HZL believes it is unlikely that the claim
will lead to a future obligation and thus no provision has
been made in the financial statements.
b) Vedanta Limited: Income tax
Vedanta Limited (notice was served on Cairn India
Limited which subsequently merged with Vedanta
Limited, accordingly now referred to as Vedanta Limited/
Company) received a demand totalling `20,495 crores
(including interest of `10,247 crores) holding the
Company as ‘assessee in default’ as per Section 201 of
Indian Income Tax Act. The Group has challenged the
said order and presently pending before the Income Tax
Appellate Tribunal (ITAT).
The Group also filed a writ petition before the Delhi High
Court wherein it has raised several grounds against the
order said order. The matter came up for hearing on
05 February 2020 before Delhi High Court but adjourned
and the next date of hearing is 29 July 2021.
Separately, Vedanta Resources Limited has filed a Notice
of Claim against the Government of India (‘GOI’) under
the BIT. Hearing already concluded in May 2019 and award
awaited.
< BACK TO CONTENTS
Separately Cairn UK Holdings Limited (“CUHL”), on whom
the primary liability of income tax lies, had received an
Order from the ITAT in the financial year 2016-17 holding
that the transaction is taxable in view of the clarificatory
amendment in the Act but also acknowledged that
amendment being a retrospective transaction, interest
would not be levied. Hence affirming a demand of `10,247
crores excluding the interest portion that had previously
been claimed. Against this demand Tax authorities
have recovered `5,863 crores from the CUHL and thus
reducing the liability to `4,389 crores. Vedanta has also
paid interim dividend of `5 crores to the Tax authorities
and thus reducing the liability to `4,384 crores (31 March
2020: `4,384 crores).
In related proceedings, the International Arbitration
Tribunal ruled unanimously in the case of Cairn Energy
Plc that India had breached its obligations under the
UK-India Bilateral Investment Treaty (the BIT). The Group
understands that Government of India has challenged
the ruling before the International Court of Justice at
The Hague. As the Cairn Energy Plc Arbitration award
received on 23 December 2020 regarding retrospective
tax will have a direct influence upon the Group’s case,
due to the fact that primary liability of paying the income
tax is CUHL’s and in this case there is expected to be
no income tax liability in the hands of CUHL, the claim
of amounts assessed as in default against the Group
should be eliminated. Further going by the recent ruling
of Supreme court in an another unrelated matter, it was
held that person under sec 195 can’t be held responsible
to do impossible in case of retrospective act. Thus it was
impossible for Vedanta Limited (successor in the business
of Cairn India Limited) to deduct income tax and can’t
be held responsible for default under Section 201. The
Group believes that owing to the similarity in the facts of
the case it has a good case to argue and accordingly it is
unlikely that any liability will devolve upon the group.
c) Ravva Joint Operations arbitration proceedings
ONGC Carry
The Ravva Production Sharing Contract (PSC) obliges
the contractor parties to pay a proportionate share of
ONGC’s exploration, development, production and
contract costs in consideration for ONGC’s payment of
costs related to the construction and other activities
it conducted in Ravva prior to the effective date of the
Ravva PSC (the ONGC Carry). The question as to how
the ONGC Carry is to be recovered and calculated, along
with other issues, was submitted to an International
Arbitration Tribunal in August 2002 which rendered a
decision on the ONGC Carry in favour of the contractor
parties (including Vedanta Limited (Cairn India Limited
which subsequently merged with Vedanta Limited,
accordingly now referred to as Vedanta Limited)) whereas
four other issues were decided in favour of Government
of India (GOI) in October 2004 (Partial Award).
The GOI then proceeded to challenge the ONGC Carry
decision before the Malaysian courts, as Kuala Lumpur
was the seat of the arbitration. The Federal Court of
Malaysia upheld the Partial Award. As the Partial Award
did not quantify the sums, therefore, contractor parties
approached the same Arbitration Tribunal to pass a
Final Award in the subject matter since it had retained
the jurisdiction to do so. The Arbitral Tribunal was
reconstituted and the Final Award was passed in October
2016 in Company’s favour. GOI’s challenge of the Final
Award has been dismissed by the Malaysian High Court
and the next appellate court in Malaysia i.e. Malaysian
Court of Appeal. GOI then filed an appeal at Federal Court
of Malaysia. The matter was heard on 28 February 2019
and the Federal Court dismissed GOI’s leave to appeal.
The Company has also filed for the enforcement of the
Partial Award and Final Award before the Hon'ble Delhi
High Court. The matter is now listed for hearing on
13 July 2021.
Base Development Cost
Ravva joint operations had received a claim from the
Ministry of Petroleum and Natural Gas, Government of
India (GOI) for the period from 2000-2005 for `946 crores
(US$129 million) for an alleged underpayment of profit
petroleum (by recovering higher Base Development
Costs (“BDC”) against the cap imposed in the PSC) to
the Government of India (GOI), out of which, Vedanta
Limited’s (Cairn India Limited which subsequently
merged with Vedanta Limited, accordingly now referred
to as Vedanta Limited) share will be `213 crores (US$29
million) plus interest. Joint venture partners initiated
the arbitration proceedings and Arbitration Tribunal
published the Award in January 2011 allowing claimants
(including the Company) to recover the development
costs spent to the tune of `2,038 crores (US$278 million)
and disallowed over run of `161 crores (US$22 million)
spent in respect of BDC along with 50% legal costs.
Finally, Supreme Court of India on 16 September 2020
pronounced the order in favour of Vedanta, rejecting all
objections of the GOI and allowed enforcement of the
Arbitration Award. With the Supreme Court order the
Ravva BDC Matter stands closed.
In connection with the above two matters, the Company
has received an order dated 22 October 2018 from the
GOI directing oil marketing companies (OMCs) who are
the offtakers of Ravva Crude to divert the sale proceeds
to GOI’s account. GOI alleges that the Ravva Joint
Operations (consisting of four joint venture partners)
has short paid profit petroleum of `2,302 crores (US$314
million) (the Company’s share approximately - `682
crores (US$93 million)) on account of the two disputed
474
475
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
issues of ONGC Carry and BDC matters, out of which
`469 crores (US$64 million) pertains to ONGC Carry
and `213 crores (US$29 million) pertains to BDC Matter.
Against an interim application filed by the Company
along with one of its joint venture partner for seeking
stay of such action from GOI before the Hon'ble Delhi
High Court, the Court directed the OMCs to deposit
above sums to the Delhi High Court for both BDC and
ONGC Carry matters. However, the Company (and
other joint venture partner) has been given the liberty
to seek withdrawal of the amounts from the Court upon
furnishing a bank guarantee of commensurate value.
On the basis of the above direction, the OMC’s have
deposited `682 crores (US$93 million) out of which
`616 crores (US$84 million) has been withdrawn post
submission of bank guarantee. The Hon’ble Delhi High
Court vide its order dated 28 May 2020 read with order
dated 04 June 2020 has directed that all future sale
proceeds of Ravva Crude w.e.f. 05 June 2020 be paid
directly to Vedanta Limited by the OMCs. In view of the
closure of the BDC matter, the Company has also filed an
application in HC on 22 September 2020 seeking refund
of remaining `66 crores (US$9 million) and release of bank
guarantees submitted in Court pertaining to the BDC
matter, out of which `147 crores (US$20 million) have
since been received by Vedanta.
During the proceedings of the above matter, GOI has
also filed an interim application seeking deposit by the
said OMCs of an amount of `638 crores (US$87 million)
(Company’s share of `410 crores (US$56 million)) towards
interest on the alleged short payment of profit petroleum
by the petitioners i.e. the Company (and other joint
venture partner). The matter has been listed for hearing
on 13 July 2021 along with ONGC carry case.
While the Company does not believe the GOI will be
successful in its challenge, if the Arbitral Awards in above
matters are reversed and such reversals are binding,
Company would be liable for approximately `469 crores
(US$64 million) plus interest. (31 March 2020: `479 crores
(US$64 million) plus interest).
d)
Proceedings related to the imposition of entry tax
Vedanta Limited and other Group companies i.e. Bharat
Aluminium Company Limited (BALCO) and Hindustan
Zinc Limited (HZL) challenged the constitutional validity
of the local statutes and related notifications in the states
of Odisha and Rajasthan pertaining to the levy of entry
tax on the entry of goods brought into the respective
states from outside.
Post some contradictory orders of High Courts across
India adjudicating on similar challenges, the Supreme
Court referred the matters to a nine judge bench. Post
a detailed hearing, although the bench rejected the
compensatory nature of tax as a ground of challenge, it
476
maintained status quo with respect to all other issues
which have been left open for adjudication by regular
benches hearing the matters.
Following the order of the nine judge bench, the regular
bench of the Supreme Court proceeded with hearing
the matters. The regular bench remanded the entry
tax matters relating to the issue of discrimination
against domestic goods bought from other States to
the respective High Courts for final determination but
retained the issue of jurisdiction for levy on imported
goods, for determination by the regular bench of the
Supreme Court. Following the order of the Supreme
Court, the Group filed writ petitions in respective High
Courts.
On 09 October 2017, the Supreme Court has held that
states have the jurisdiction to levy entry tax on imported
goods. With this Supreme Court judgement, imported
goods will rank pari-passu with domestic goods for the
purpose of levy of Entry tax. Vedanta Limited and its
subsidiaries have amended their appeals (writ petitions)
in Odisha and Chhattisgarh to include imported goods
as well.
The issue pertaining to the levy of entry tax on the
movement of goods into a Special Economic Zone
(SEZ) remains pending before the Odisha High Court.
The Group has challenged the levy of entry tax on any
movement of goods into SEZ based on the definition
of ‘local area’ under the Odisha Entry Tax Act which is
very clear and does not include a SEZ. In addition, the
Government of Odisha further through its SEZ Policy
2015 and the operational guidelines for administration of
this policy dated 22 August 2016, exempted the entry tax
levy on SEZ operations.
The total claims against Vedanta Limited and its
subsidiaries are `1,412 crores (31 March 2020: `1,366
crores) net of provisions made.
e)
BALCO: Challenge against imposition of Energy
Development Cess
BALCO challenged the imposition of Energy
Development Cess levied on generators and distributors
of electrical energy @ 10 paise per unit on the electrical
energy sold or supplied before the High Court on the
grounds that the Cess is effectively on production
and not on consumption or sale since the figures of
consumption are not taken into account and the Cess is
discriminatory since captive power plants are required
to pay @ 10 paise while the State Electricity Board is
required to pay @ 5 paise. The High Court of Chhattisgarh
by order dated 15 December 2006 declared the
provisions imposing ED Cess on CPPs as discriminatory
and therefore ultra vires the Constitution. BALCO has
< BACK TO CONTENTS
sought refund of ED Cess paid till March 2006 amounting
to `35 crores.
of operations, cash flows or the financial position of the
Group.
The State of Chhattisgarh moved an SLP in the Supreme
Court and whilst issuing notice has stayed the refund
of the Cess already deposited and the Supreme Court
has also directed the State of Chhattisgarh to raise the
bills but no coercive action be taken for recovery for the
same. Final argument in this matter started before the
Supreme Court. In case the Supreme Court overturns the
decision of the High Court, the Group would be liable to
pay an additional amount of `930 crores (31 March 2020:
`841 crores). Accordingly the total exposure on the Group
would be `965 crores (31 March 2020: `876 crores).
f) Miscellaneous disputes – Income tax
The Group is involved in various tax disputes amounting
to `1,966 crores (31 March 2020: `1,909 crores) relating
to income tax. It also includes similar matters where
initial assessment is pending for subsequent periods and
where the Group has made claims and assessments are
in progress. These mainly relate to the disallowance of
tax holiday for 100% Export Oriented Undertaking under
Section 10B of the Income Tax Act, 1961, disallowance
of tax holiday benefit on production of gas under
Section 80IB of the Income Tax Act, 1961, on account of
depreciation disallowances under the Income Tax Act and
interest thereon which are pending at various appellate
levels. Interest and penalty, if any would be additional.
Refer note 35 for other income tax disputes.
The Group believes that these disallowances are not
tenable and accordingly no provision is considered
necessary.
g) Miscellaneous disputes – Others
The Group is subject to various claims and exposures
which arise in the ordinary course of conducting and
financing its business from the excise, indirect tax
authorities and others. These claims and exposures
mostly relate to the assessable values of sales and
purchases or to incomplete documentation supporting
the companies’ returns or other claims.
The approximate value of claims (excluding the items as
set out separately above) against the Group companies
total `4,782 crores (31 March 2020: `3,996 crores).
Based on evaluations of the matters and legal advice
obtained, the Group believes that it has strong merits in
its favour. Accordingly, no provision is considered at this
stage.
39 OTHER MATTERS
a) The Company is purchasing bauxite under long-term
linkage arrangement with Orissa Mining Corporation
Ltd. (hereafter referred as OMC) at provisional price of
`1,000/MT from October 2020 onwards based on interim
order dated 08 October 2020 of the Hon’ble High Court
of Odisha, which is subject to final outcome of the writ
petition filed by the Company as mentioned below.
The last successful e-auction based price discovery
was done by OMC in April 2019 at INR 673/MT and
supplied bauxite at this rate from Sep 2019 to Sep 2020
against an undertaking furnished by the Company to
compensate any differential price discovered through
future successful national e-auctions. Though OMC
conducted the next e-auction on 31 August 2020 with
floor price of `1,707/MT determined on the basis of Rule
45 of Minerals Concession Rules, 2016 (hereafter referred
as the Rules), no bidder participated at that floor price
and hence the auction was not successful. However, OMC
raised demand of `281 crores on the Company towards
differential pricing and interest for bauxite supplied till
Sep 2020 considering the auction base price of
INR 1,707/MT.
The Company had then filed a writ petition before
Hon’ble High Court of Odisha in September 2020
for resumption of bauxite supply in accordance with
applicable Government of Odisha Gazette notification
dated 24 February 2018. Hon’ble High Court has issued
interim Order dated 08 October 2020 directing that the
petitioner shall be permitted to lift the quantity of bauxite
mutually agreed under the terms of the long-term linkage
arrangement for the remaining period of the financial
year 2020-21 on payment of `1,000/MT and furnishing
an undertaking for the differential amount, with the
floor price arrived at by OMC under the rules, along with
applicable interest, subject to final outcome of the
writ petition.
OMC re-conducted e-auction on March 9, 2021 with
floor price of `2,011/MT determined on the basis of the
Rules. However, again as no bidder participated at that
floor price, the auction was not successful. On 18 March
2021, Cuttack HC issued an order disposing off the writ
petition, directing that the current arrangement of
bauxite price @ 1000/T will continue for the FY2021-22.
Except as described above, there are no pending
litigations which the Group believes could reasonably be
expected to have a material adverse effect on the results
Supported by legal opinions obtained, management
believes that the provisions of Rule 45 of Minerals
Concession Rules, 2016 are not applicable to commercial
477
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
Government of India’s remaining 29.5% share in HZL. This
call option was subject to the right of the Government of
India to sell 3.5% of HZL shares to HZL employees.
The Company exercised the second call option on 21
July 2009.The Government of India disputed the validity
of the call option and refused to act upon the second call
option. Consequently the Company invoked arbitration
which is in the early stages. The next date of hearing is to
be notified. The Government of India without prejudice
to the position on the Put/Call option issue has received
approval from the Cabinet for divestment and the
Government is looking to divest through the auction
route. Meanwhile, the Supreme Court has, in January
2016, directed status quo pertaining to disinvestment of
Government of India’s residual shareholding in a public
interest petition filed which is currently pending and
sub-judice.
Pursuant to the Government of India’s policy of
ii)
divestment, the Company in March 2001 acquired 51%
equity interest in BALCO from the Government of India.
Under the terms of the SHA, the Company had a call
option to purchase the Government of India’s remaining
ownership interest in BALCO at any point from March 2,
2004. The Company exercised this option on March 19,
2004. However, the Government of India contested the
valuation and validity of the option and contended that
the clauses of the SHA violate the erstwhile Companies
Act, 1956 by restricting the rights of the Government
of India to transfer its shares and that as a result such
provisions of the SHA were null and void. In the arbitration
filed by the Company, the arbitral tribunal by a majority
award rejected the claims of the Company on the ground
that the clauses relating to the call option, the right of
first refusal, the “tag along” rights and the restriction on
the transfer of shares violate the erstwhile Companies
Act, 1956 and are not enforceable.
The Company has challenged the validity of the majority
award before the Hon'ble High Court at Delhi and sought
for setting aside the arbitration award to the extent
that it holds these clauses ineffective and inoperative.
The Government of India also filed an application
before the High Court to partially set aside the arbitral
award in respect of certain matters involving valuation.
The matter is currently scheduled for hearing by the
Delhi High Court on 11 August 2020. Meanwhile, the
Government of India without prejudice to its position on
the Put/Call option issue has received approval from the
Cabinet for divestment and the Government is looking to
divest through the auction route.
On 9 January 2012, the Company offered to acquire the
Government of India’s interests in HZL and BALCO for
`15,492 crores and `1,782 crores respectively. This offer
was separate from the contested exercise of the call
options, and Company proposed to withdraw the ongoing
litigations in relation to the contested exercise of the
options should the offer be accepted. To date, the offer
has not been accepted by the Government of India and
therefore, there is no certainty that the acquisition
will proceed.
In view of the lack of resolution on the options, the
non-response to the exercise and valuation request
from the Government of India, the resultant uncertainty
surrounding the potential transaction and the valuation
of the consideration payable, the Company considers the
strike price of the options to be at the fair value, which is
effectively nil, and hence the call options have not been
recognised in the financial statements.
Flue-gas desulfurisation (FGD) implementation:
g)
Ministry of Environment, Forest and Climate Change
(MOEF&CC) has revised emission norms for coal-
based power plants in India. Accordingly, both captive
and independent coal-based power plants in India
are required to comply with these revised norms for
reduction of sulphur oxide (SOx) emissions for which
the current plant infrastructure is to be modified or new
equipment have to be installed. Timelines for compliance
to the revised norm for various plants in the Group range
from December 2023 to December 2024. Different power
plants are at different stages of the implementation
process.
Ministry of Power issued notification dated 02 July 2020
to restrict imports from China. Power China SEPCO1 has
communicated their inability to execute the FGD project
quoting aforementioned MOP notification and prevailing
COVID situation in India. TSPL is proceeding with further
steps for retendering the FGD project.
TSPL filed a petition before Punjab State Electricity
Regulatory Commission (PSERC) for approval of MoEF
notification as change in law in terms of Article 13 of PPA
on 30 June 2017. PSERC vide its order dated 21 December
2018 has held that MoEF notification is not a change in
law as it does not impose any new requirements. TSPL
had filed an appeal before Hon’ble Appellate Tribunal for
Electricity (APTEL) challenging the said order of PSERC.
APTEL has pronounced the order 28 August 2020 in
favour of TSPL allowing the cost pass through. PSPCL has
filed an appeal against this order in Supreme Court.
sale of bauxite ore and hence, it is not probable that
the Company will have any financial obligation towards
the aforesaid commitments over and above the price
of `673/MT discovered vide last successful e-auction.
Accordingly, the Company has not recognised above
referred OMC debit note of `281 crores in respect
of bauxite procured till September 2020 and further
differential price of `130 crores for subsequent
procurements from 01 October 2020 till 31 March 2021.
However, as an abundant precaution, the Company has
recognised purchase of Bauxite from October 2020
onwards at the at the aforesaid rate of INR 1,000/MT in
line with the Odisha High court interim order dated 08
October 2020.
In terms of various notifications issued by the
b)
Ministry of Environment, Forest and Climate Change
(MoEF&CC), ash produced from thermal power plant is
required to be disposed of by the Group in the manner
specified in those notifications. However compliance
with manner of disposal as specified in those notifications
is not fully achieved due to lack of demand from user
agencies. Consequently, the Group is storing some
of the ash produced in ash dyke in accordance with
conditions of the Environmental Clearance & Consent
to Operate granted by the MOEF&CC & Odisha State
Pollution Control Board & Chhattisgarh Environment
Conservation Board (OSPCB & CECB) respectively while
giving preference to supplying the same to user agencies.
Management believes storage of ash in ash dykes/ash
pond in accordance with environmental clearances
received by the Group are sufficient compliance with
the applicable notifications issued by MoEF&CC which
is supported by a legal opinion obtained. The National
Green Tribunal (NGT) has also taken cognisance of the
matter and vide its order dated 12 February 2020 has
ordered for levy of environmental compensation on
generating companies on account of their failure to
comply the aforesaid notifications. The Group has filed
SLPs before the Hon’ble Supreme Court challenging
the order of the NGT and the same was heard by the
Court on 11 September 2020 and granted an ad interim
stay against recoveries in pursuance of NGT order.
Management believes that the outcome of the appeal will
not have any significant adverse financial impact on the
Group which is supported by a legal opinion obtained.
The Department of Mines and Geology (DMG) of
c)
the State of Rajasthan initiated the royalty assessment
process from January 2008 to 2019 and issued a show
cause notice vide an office order dated 31 January 2020
amounting to `1,925 croress, further an additional
demand was issued vide an office order dated 14
December 2020 for `311 croress on similar questions of
law. The Company has challenged the show cause notice
and computation mechanism of the royalty on the ground
that the state has not complied with the previous orders
of Rajasthan High court where a similar computation
mechanism was challenged and court had directed DMG
to reassess basis the judicial precedents and mining
concession rules. Pending compliance of previous orders,
High court has granted a stay on the notice and directed
DMG not to take any coercive action. State Government
has also been directed to not take any coercive action
in order to recover such miscomputed dues. Based on
the opinion of external counsel, the Company believes
that it has strong grounds of a successful appeal, and
the chances of an outcome which is not if favour of the
Company is remote.
d) During the current year, the Company entered
into a `10,000 crores long-term syndicated loan facility
agreement. This loan is secured by the way of pledge
over the shares held by the Company in Hindustan Zinc
Limited (HZL) representing 14.82% of the paid up share
capital of HZL along-with a non-disposal undertaking in
respect of its shareholding in HZL to the extent of 50.1%
of the paid up share capital of HZL. As at 31 March 2021,
the principal amount participated for and outstanding
under the facility is `8,650 crores.
e) The Scheme of Amalgamation and Arrangement
amongst Sterlite Energy Limited ('SEL'), Sterlite
Industries (India) Limited ('Sterlite'), Vedanta Aluminium
Limited ('VAL'), Ekaterina Limited ('Ekaterina'), Madras
Aluminium Company Limited ('Malco') and the Company
(the “Scheme”) had been sanctioned by the Honourable
High Court of Madras and the Honourable High Court of
Judicature of Bombay at Goa and was given effect to in
the year ended 31 March 2014.
Subsequently the above orders of the honourable High
Court of Bombay and Madras have been challenged
by Commissioner of Income Tax, Goa and Ministry of
Corporate Affairs through a Special Leave Petition before
the honourable Supreme Court and also by a creditor
and a shareholder of the Company. The said petitions are
currently pending for hearing.
i)
f)
Pursuant to the Government of India’s policy
of disinvestment, the Company in April 2002 acquired
26% equity interest in Hindustan Zinc Limited (HZL)
from the Government of India. Under the terms of the
Shareholder’s Agreement (‘SHA’),the Company had
two call options to purchase all of the Government of
India’s shares in HZL at fair market value. The Company
exercised the first call option on 29 August 2003 and
acquired an additional 18.9% of HZL’s issued share
capital. The Company also acquired an additional 20%
of the equity capital in HZL through an open offer,
increasing its shareholding to 64.9%. The second call
option provides the Company the right to acquire the
478
479
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
40 RELATED PARTY DISCLOSURES
List of related parties and relationships
A) Entities controlling the Company (Holding
Companies)
Volcan Investments Limited (Volcan)
Volcan Investments Cyprus Limited
Intermediate Holding Companies
Finsider International Company Limited
Richter Holdings Limited
Twin Star Holdings Limited
Vedanta Resources Cyprus Limited
Vedanta Resources Finance Limited
Vedanta Resources Holdings Limited
Vedanta Resources Limited (formerly Vedanta
Resources Plc)
Welter Trading Limited
Westglobe Limited
Vedanta Holdings Mauritius II Limited(c)
B)
C)
Fellow subsidiaries
(with whom transactions have taken place)
Konkola Copper Mines Plc (a)
Sterlite Iron and Steel Company Limited
Sterlite Power Transmission limited
Sterlite Technologies Limited
Sterlite Power Grid Ventures Limited
Twin Star Technologies Limited
Post retirement benefit plan
BALCO Employees Provident Fund Trust
HZL Employee Group Gratuity Trust
HZL Superannuation Trust
Hindustan Zinc Ltd. Employees Contributory
Provident Fund Trust
Sesa Group Employees Gratuity Fund and Sesa Group Executives
Gratuity Fund
Sesa Group Employees Provident Fund
Sesa Group Executives Superannuation Scheme Fund
Sesa Mining Corporation Limited Employees Gratuity Fund
Sesa Mining Corporation Limited Employees Provident Fund Trust
Sesa Resources Limited Employees Gratuity Fund
Sesa Resources Limited and Sesa Mining Corporation Limited
Employees Superannuation Fund
Sesa Resources Limited Employees Provident Fund Trust
FACOR Superannuation Trust (d)
FACOR Employees Gratuity Scheme (d)
D) Associates and Joint Ventures (with whom transactions have
taken place)
RoshSkor Township (Pty) Limited
Goa Maritime Private Limited
E) Others (with whom transactions have taken place)
i)
Enterprises over which key management personnel/their relatives
have control or significant influence
Cairn Foundation
Fujairah Gold Ghana
Janhit Electoral Trust
Sesa Community Development Foundation
Runaya Refinery LLP
Vedanta Foundation
Vedanta Medical Research Foundation
Minova Runaya Private Limited
ii)
Enterprises which are Associates/Joint Ventures of entities under
common control
India Grid trust (b)
(a)
Konkola Copper Mines Plc (KCM) ceased to be a related party w.e.f. 21 May 2019. The Company has total receivable of `211 crores (net of
provision of `420 crores) as at 31 March 2021 (As at 31 March 2020 - `437 crores (net of provision of `207 crores)).
(b) Ceased to be related party during the year ended 31 March 2020.
(c) On 24 December 2020, Vedanta Holdings Mauritius II Limited purchased shares of Vedanta Limited (Refer note 15(c)(3).
(d)
Acquired during the year.
Ultimate Controlling party
Vedanta Limited is a majority-owned and controlled subsidiary of Vedanta Resources Limited (‘VRL’). Volcan
Investments Limited (‘Volcan’) and its wholly-owned subsidiary together hold 100 % of the share capital and 100 %
of the voting rights of VRL. Volcan is 100 % beneficially owned and controlled by the Anil Agarwal Discretionary Trust
(‘Trust’). Volcan Investments Limited, Volcan Investments Cyprus Limited and other intermediate holding companies
except VRL do not produce Group financial statements.
F) The Group enters into transactions with its related parties, including its parent Vedanta Resources Limited, and
the companies over which it has significant influence. A summary of significant related party transactions for the year
ended 31 March 2021 are noted below.
480
< BACK TO CONTENTS
Transactions and balances with own subsidiaries are eliminated on consolidation.
Particulars
Income:
(i) Revenue from operations
(ii) Other income
Interest and guarantee commission (40(I))
a)
b) Outsourcing service fees
c) Dividend income
Expenditure and other transactions:
(i) Purchase of goods/services
(ii) Stock options (recovery)
(iii) Management fees and Brand fees charged (40 (L))
(iv) Reimbursement for other expenses (net of recovery)
(v) Corporate Social Responsibility expenditure/Donation
(vi) Contribution to Post retirement employee benefit trust/fund
vii) Remuneration to relatives of key management personnel
(viii) Commission/Sitting Fees
- To Independent directors
- To Key management personnel
- To relatives of key management personnel
(ix) Dividend paid
- To Holding companies
- To Key management personnel
- To relatives of key management personnel
(x) Guarantee Commission Expense (40(H))
Other Transactions during the year:
(i)
Loans given (Net of repayment of `1,117 crores) (40(I))
(ii)
Financial Guarantees (taken)/given during the year (40(I))
(iii) Financial Guarantees relinquished during the year (40(I))
Balances as at year end:
(i)
Trade receivables
(ii) Loan Given (40(I))
(iii) Other receivables and advances (including brand fee prepaid)
(40(H,M,L))
(iv) Trade payables
(v) Other payables (including brand fee payable) (40(L))
(vi)
(vii) Financial guarantee given (40(I))
(viii) Bank guarantee given (40(K))
(ix) Sitting fee, Remuneration, Commission and consultancy fees
Investments (40(J))
payable to KMP and their relatives
(` in crores)
Associates/
Joint ventures
Others
Total
Entities
controlling
the Company/
Fellow
subsidiaries
736
670
4
2
76
-
985
90
-
-
-
-
-
-
1,770
-
-
133
7,165
3,147
3,146
47
7,066
927
97
208
-
1
115
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5
1
-
-
-
-
-
-
4
-
-
-
55
-
-
(0)
63
59
13
3
1
0
-
0
0
-
-
-
11
-
-
2
21
87
-
5
-
6
739
670
4
2
131
-
985
90
63
59
13
3
1
0
1,770
0
0
133
7,165
3,147
3,157
47
7,071
930
119
294
-
6
115
6
481
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
Remuneration of key management personnel
Particulars
Short-term employee benefits
Post employment benefits *
Share based payments
(` in crores)
For the Year ended
31 March 2021
28
1
0
29
* Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all
the employees together.
G) The Group enters into transactions with its related parties, including its parent Vedanta Resources Limited, and
the companies over which it has significant influence. A summary of significant related party transactions for the year
ended March 31, 2020 are noted below.
Transactions and balances with own subsidiaries are eliminated on consolidation.
Particulars
Trade receivables
(i)
(ii) Loans given
(iii) Other receivables and advances
(iv) Trade payables
(v) Other payables
(vi)
Investments
(vii) Financial guarantee given
(viii) Bank guarantee given (40(K))
(ix) Remuneration, Commission and consultancy fees payable to
KMP and their relatives
Entities
controlling
the Company/
Fellow
subsidiaries
3
80
133
114
60
101
-
115
-
(` in crores)
Remuneration of key management personnel
Particulars
Income:
(i) Revenue from operations
(ii) Other income
Interest and guarantee commission
a)
b) Outsourcing service fees
c) Dividend income
Expenditure and other transactions:
(i) Purchase of goods/services
(ii) Stock options (recovery)
(iii) Management fees and Brand fees charged
(iv) Reimbursement for other expenses (net of recovery)
(v) Corporate Social Responsibility expenditure/Donation
(vi) Contribution to Post retirement employee benefit trust/fund
(vii) Remuneration to relatives of key management personnel
(viii) Commission/Sitting Fees
- To Independent directors
- To Key management personnel
- To relatives of key management personnel
(ix) Dividend paid
- To Holding companies
- To Key management personnel
- To relatives of key management personnel
Other Transactions during the year:
Loans given/(repayment thereof)
(i)
(ii)
Financial Guarantees (taken)/given during the year
(iii) Financial Guarantees relinquished during the year
(iv)
Balances as at year end:
Investments (redeemed) during the year (40(M))
Entities
controlling
the Company/
Fellow
subsidiaries
Associates/
Joint ventures
Others
Total
855
42
3
2
58
(0)
526
48
-
-
-
-
-
-
727
-
-
0
-
-
(4,485)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(0)
-
-
-
2
-
-
4
7
(0)
-
0
111
112
17
4
4
0
-
0
0
-
0
25
-
857
42
3
6
65
(0)
526
48
111
112
17
4
4
0
727
0
0
(0)
0
25
(4,485)
(` in crores)
Associates/
Joint ventures
Others
Total
-
4
1
-
-
-
-
-
-
-
-
2
7
68
-
26
-
6
3
84
136
121
128
101
26
115
6
(` in crores)
For the year ended
31 March 2020
40
8
1
49
Particulars
Short-term employee benefits*
Post employment benefits**
Share based payments
Total
*This includes reimbursement to the parent company for remuneration paid to the then CEO and Whole Time Director of the Company
aggregating to `11 crores for the year ended 31 March 2020.
** Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees
together.
H) Cairn PSC and OALP guarantee to Government
Vedanta Resources Limited (“VRL”), as a parent company,
has provided financial and performance guarantee to the
Government of India for erstwhile Cairn India group’s
(“Cairn”) obligations under the Production Sharing
Contract (‘PSC’) provided for onshore block RJ-ON-90/1,
for making available financial resources equivalent to
Cairn’s share for its obligations under the PSC, personnel
and technical services in accordance with industry
practices and any other resources in case Cairn is unable
to fulfil its obligations under the PSC.
During the current year, the Board of Directors of the
Company has approved a consideration to be paid for this
guarantee at an annual charge of 1.2% of net exploration
and development spend, subject to a minimum annual
fee of `37 crores ($5 million), applicable from April 2020
onwards to be paid in ratio of participating interests held
equally by the Company and its step-down subsidiary,
Cairn Energy Hydrocarbons Ltd. (“CEHL”).
Similarly, VRL has also provided financial and performance
guarantee to the Government of India for the Company’s
obligations under the Revenue Sharing Contract (‘RSC’)
in respect of 51 Blocks awarded under the Open Acreage
Licensing Policy (“OALP”) by the Government of India.
During the current year, the Board of Directors of the
Company has approved a consideration to be paid for this
guarantee consisting of one-time charge of `183 crores
($25 million), i.e. 2.5% of the total estimated cost of initial
exploration phase of approx. `7,330 crores ($1 billion) and
an annual charge of 1% of spend, subject to a minimum
fee of `73 crores ($10 million) and maximum fee of `147
crores ($20 million) per annum.
Accordingly, the Company has recorded a guarantee
commission expense of `133 crores ($18 million) [2020:
Nil] for the year ended 31 March 2021 and `161 crores
($22 million) (PY Nil) is outstanding as a pre-payment.
In June 2020, as part of its cash management
I)
activities, the Company through its overseas subsidiaries
extended certain loans and guarantee facilities, for a
period up to 12 months, to Vedanta Resources Limited
(“VRL”) and its subsidiaries (collectively “the VRL
group”) which were drawn over a period of time carrying
interest ranging from 3% to 7% and guarantee fee at
1%. In October 2020, certain terms of the facilities were
modified primarily comprising extension of the tenor
and making it repayable in instalments by December
482
483
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements 2023, which resulted in substantial modification of
the instruments. Further, the guarantee was also
extinguished. The difference in the fair value of the
loan was debited to equity as a transaction with the
shareholder. The provisions of Ind AS 109 – ‘Financial
Instruments’ as applicable for assets which are credit
impaired on initial recognition were applicable to loans
aggregating to US$122 million (`894 crores) to one of the
subsidiaries of VRL.
Subsequently, the contractual rate of interest on these
instruments were increased with retrospective effect to
14% to 17.5% to enable the Group to earn the fair market
rate of interest, as was determined on the date of the
origination of the transaction.
Thereafter, in March 2021, since the credit default swap
rates had stabilised, the Group revised the interest
rate to 9.6% using a level 2 valuation approach by
applying the prevailing US Dollar treasury rates and
the Company specific credit default swaps. The Group
also benchmarked the said rate to the coupon rate on
bonds issued to non-related third parties by the VRL
group during the same period. As per the accounting
requirements of Ind AS 109 with respect to modification
of loans, the net excess of loan amount over the present
value of the modified contractual cash flows discounted
at the original effective interest rate aggregating to
US$73 million (`536 crores) is reflected in the statements
of changes in equity and cash flow as a transaction with
the shareholder.
As of 31 March 2021, loans of US$966 million (approx.
`7,081 crores) are outstanding. The loans are now entirely
held by a single subsidiary of VRL, which holds 37.1%
shares (increased to 43.6% subsequent to the year-end)
in the Company and is required to maintain the said level
of shareholding during the tenure of the loans. The said
entity also has a contractual ceiling on its borrowings,
which is lower than the market value of its investments
and other assets. Further, an accretive interest of US$2
million (`15 crores) over and above the contractual
interest has been accounted for in the statement of profit
and loss. Subsequent to the year end, the VRL group has
repaid US$207 million (`1,534 crores) of the aforesaid
loans.
J) Cairn India Holdings Limited held bonds issued by
Vedanta Resources Limited, the carrying value of which
at the start of the year was `228 crores (US$31 million),
which had maturities ranging from June 2021 to May
2023 at coupon ranging from 7.13% to 8.25% p.a. During
the year, investments in bonds of Vedanta Resources
Limited have been disposed off in the open market for a
consideration of `215 crores (US $29 million).
K) Bank guarantee given by Vedanta Limited on behalf
of Volcan Investments Limited in favour of Income Tax
department, India as collateral in respect of certain tax
disputes of Volcan Investments Limited.
In 2017, the Group had executed a three-year brand
L)
license agreement (“the Agreement”) with Vedanta
Resources Ltd. (‘VRL’) for the use of brand ‘Vedanta’
which envisaged payment of brand fee to VRL at 0.75%
of turnover of the Company. Later, certain subsidiaries
of the Company executed similar agreements with
VRL to pay brand fee ranging between 0.75% - 1.50
% of their respective turnover. During the current
year, the Agreement with the Company and some of
its subsidiaries was renewed and certain additional
services were also agreed to be provided by VRL. Based
on updated benchmarking analysis conducted by
independent experts, the brand and strategic service
fee was re-negotiated at 2% of the turnover, while for
the remaining subsidiaries the previous rates remain
unchanged. Accordingly, the Group has recorded an
expense of `939 crores (2020: `313 crores) for the
year ended 31 March 2021. The Group pays such fee in
advance, at the start of the year based on estimated
annual turnover.
M) During the financial year ended 31 March 2019, as
part of its cash management activities, CIHL purchased
an economic interest in a structured investment for the
equity shares of Anglo American Plc (“AA Plc”), a company
listed on the London Stock Exchange, from Volcan for
a total consideration of `3,812 crores (GBP 428 million,
USD 541 million) determined based on an independent
third-party valuation. In July 2019, the transaction was
unwound and the investments were redeemed for a total
consideration of `4,485 crores (GBP 519 million, USD 639
million), representing the actual price Volcan realised
from selling the shares of AA Plc. CIHL was informed that
the said realisation was net of applicable transaction
costs of `93 crores (GBP 10 million, USD 12 million), which
in January 2021, CIHL agreed to bear. Accordingly, this
amount has been recorded in the statement of profit and
loss in the current year as exceptional item.
N) During the year ended 31 March 2021, the Group
had renewed loan provided to Sterlite Iron and Steel
Company Limited to finance project in earlier years. The
loan balance as at 31 March 2021 was `5 crores (March
31,2020: `5 crores). The loan is unsecured in nature and
carries an interest rate of 7.15% per annum. The loan was
due in March 2021 and the agreement was renewed for a
further period of 12 months.
In 2016, a subsidiary of the Company had executed
an agreement with Twin Star Holding Limited, the
intermediate parent of the Group, to provide an
484
< BACK TO CONTENTS
unsecured loan of `67 crores (US $10 million) at an
interest rate of 2.1% per annum. The loan balance of the
loan as at 31 March 2021 and 31 March 2020 is `73 crores
and `75 crores respectively.
During the year, these companies have recognised a
provision of `98 crores (Including accrued interest of `20
crores) against said loans.
41 SUBSEQUENT EVENTS
As per information received from Vedanta Resources
Limited (“VRL” or “Acquirer”), VRL together with Twin
Star Holdings Limited, Vedanta Holdings Mauritius
Limited and Vedanta Holdings Mauritius II Limited, as
persons acting in concert with the Acquirer (“PACs”), have
acquired 374,231,161 equity shares of the Company under
the voluntary open offer made to the public shareholders
of the Company in accordance with the Securities and
Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 2011 and thereby
increasing their shareholding in the Company from the
current 55.1% to 65.18%.
There are no other material adjusting or non-adjusting
subsequent events, except as already disclosed.
42
INTEREST IN OTHER ENTITIES
Subsidiaries
a)
The Group consists of a parent company, Vedanta Limited, incorporated in India and a number of subsidiaries held
directly and indirectly by the Group which operate and are incorporated around the world. Following are the details of
shareholdings in the subsidiaries.
The Company's/Immediate holding
company's percentage holding (in
%)
As at
31 March 2021
-
As at
31 March 2020
100.00
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
1 Cairn Energy India Pty Limited2 Exploration for and
Australia
2 Copper Mines of Tasmania Pty
Limited ("CMT")
development and
production of oil & gas
Copper Mining
Cairn India
Holdings Limited
Australia
Monte Cello BV
100.00
100.00
3 Thalanga Copper Mines Pty
Copper Mining
Australia
Monte Cello BV
100.00
100.00
Limited ("TCM")
4 Bharat Aluminium Company
Limited ("BALCO")
5 Electrosteel Steels Limited
6 Goa Sea Port Private Limited
Aluminium mining and
smelting
Manufacturing of Steel
& DI Pipe
Infrastructure
India
Vedanta Limited
INDIA
Vedanta Limited
India
India
India
India
India
India
India
7 Hindustan Zinc Limited ("HZL") Zinc Mining & Smelting India
India
8 MALCO Energy Limited ("MEL") Power Generation
India
9 Maritime Ventures Private
Infrastructure
Limited
10 Paradip Multi Cargo Berth
Infrastructure
Private Limited
11 Sesa Mining Corporation
Iron ore mining
Limited
12 Sesa Resources Limited ("SRL")
13 Sterlite Ports Limited
14 Talwandi Sabo Power Limited
Iron ore mining
Infrastructure
Power Generation
("TSPL")
15 Vizag General Cargo Berth
Infrastructure
Private Limited
16 Killoran Lisheen Finance
Limited(a)
Investment company
17 Killoran Lisheen Mining Limited Development of a
zinc/lead mine
51.00
95.49
51.00
95.49
100.00
100.00
64.92
100.00
100.00
64.92
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Sterlite Ports
Limited
Vedanta Limited
Vedanta Limited
Sterlite Ports
Limited
Vedanta Limited
Sesa Resources
Limited
Vedanta Limited
Vedanta Limited
Vedanta Limited
Vedanta Limited
100.00
100.00
Republic of
Ireland
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
Vedanta Lisheen
Holdings Limited
100.00
100.00
100.00
100.00
485
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
The Company's/Immediate holding
company's percentage holding (in
%)
As at
31 March 2021
As at
31 March 2020
100.00
100.00
-
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-
100.00
Netherlands Vedanta Limited
Netherlands Vedanta Limited
Scotland
Cairn India
Holdings Limited
Scotland
Cairn India
Holdings Limited
Scotland(b)
Cairn India
Holdings Limited
Scotland
Cairn India
Holdings Limited
South Africa THL Zinc Ltd.
74.00
74.00
37 Monte Cello BV (“MCBV”)
38 THL Zinc Holding BV
39 Cairn Energy Discovery Limited2 Oil and gas exploration,
Holding company
Investment company
40 Cairn Energy Gujarat Block 1
Limited
41 Cairn Energy Hydrocarbons
Limited
42 Cairn Exploration (No. 2)
Limited2
43 Black Mountain Mining
(Proprietary) Limited
development and
production
Oil and gas exploration,
development and
production
Oil and gas exploration,
development and
production
Oil and gas exploration,
development and
production
Exploration,
development,
production and sale
of zinc, lead, copper
and associated mineral
concentrates
44 Cairn South Africa Pty Limited4 Oil and gas exploration,
South Africa Cairn Energy
100.00
100.00
45 AvanStrate Korea Inc
46 Cairn Lanka Private Limited
47 AvanStrate Taiwan Inc
49 Sterlite (USA) Inc.(a)
development and
production
Manufacturing of LCG
Glass Substrate
Oil and gas exploration,
development and
production
Manufacturing of LCG
Glass Substrate
Manufacturing of
Copper Rod and
Refining of Precious
Metals (Gold & Silver)
Investment company
Korea
Sri Lanka
Taiwan
United
Arab
Emirates
United States
of America
India
Hydrocarbons Ltd.
Avanstrate
(Japan) Inc.
CIG Mauritius
Private Ltd.
Avanstrate
(Japan) Inc.
Malco Energy
Limited
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Vedanta Limited
100.00
100.00
50 Ferro Alloy Corporation Limited
(FACOR)(c)
Manufacturing of Ferro
Alloys and Mining
Vedanta Limited
100.00
51 FACOR Alloys corporation Ltd.(c) Real estate
52 FACOR power Ltd.(c)
Power Generation
India
India
FACOR
FACOR
100.00
90.00
(a)
1
2
3
4
Under liquidation (b)Principal place of business is in India (c)Acquired with effect from 21 September 2020
The Group also has interest in certain trusts which are neither significant nor material to the Group.
Cairn Exploration (No. 2) Limited and Cairn Energy Discovery Limited have been dissolved w.e.f. 22 September 2020 and Cairn Energy
India (Pty) Ltd. w.e.f. 26 August 2020.
Activity of the Company ceased in February 2016.
Cairn South Africa Pty Limited has been deregistered w.e.f. 06 April 2021.
-
-
-
Sr.
No.
Subsidiaries
Principal activities
Country of
Incorporation
Immediate holding
company
18 Lisheen Milling Limited
Manufacturing3
19 Lisheen Mine Partnership
Development and
operation of a zinc/lead
mine
20 Vedanta Exploration Ireland
Limited(a)
Exploration activities
21 Vedanta Lisheen Holdings
Investment company
Limited
22 Vedanta Lisheen Mining Limited Zinc and lead mining
23 AvanStrate Inc. ('ASI')
Holding Company
24 Cairn India Holdings Limited
25 Western Cluster Limited
Investment company
Iron ore mining
Republic of
Ireland
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
50% each held by
Killoran Lisheen
Mining Limited &
Vedanta Lisheen
Mining Limited
Vedanta Lisheen
Republic of
Ireland
Holdings Limited
Netherlands THL Zinc Holding
BV
Vedanta Lisheen
Holdings Limited
Cairn India
Holdings Limited
Vedanta Limited
Bloom Fountain
Limited
Vedanta Limited
Republic of
Ireland
Japan
Jersey
Liberia
Mauritius
26 Bloom Fountain Limited
27 CIG Mauritius Holdings Private
Limited (a)
28 CIG Mauritius Private Limited (a)
29 THL Zinc Ltd.
Operating (Iron ore)
and Investment
Company
Investment Company
Republic of
Mauritius
Republic of
Mauritius
Investment Holding
Company and to
provide services and
resources relevant to
oil & gas exploration,
production and
development
Investment Company Mauritius
30 THL Zinc Ventures Limited
31 Amica Guesthouse (Proprietary)
Limited
Investment Company Mauritius
Accomodation and
catering services
Nambia
32 Namzinc (Proprietary) Limited Owns and operates a
Nambia
33 Skorpion Mining Company
(Proprietary) Limited ('NZ')
34 Skorpion Zinc (Proprietary)
Limited ('SZPL')
35 THL Zinc Namibia Holdings
(Proprietary) Limited (“VNHL”)
36 Lakomasko BV
zinc refinery
Exploration,
development,
treatment, production
and sale of zinc ore
Operates (zinc) and
investing company
Mining and Exploration
and Investment
company
Investment company
Nambia
Nambia
Nambia
Cairn Energy
Hydrocarbons Ltd.
CIG Mauritius
Holding Private
Ltd.
THL Zinc
Ventures
Limited
Vedanta Limited
Skorpion Zinc
(Proprietary)
Limited
Skorpion Zinc
(Proprietary)
Limited
Skorpion Zinc
(Proprietary)
Limited
THL Zinc
Namibia Holdings
(Proprietary) Ltd.
THLZ Zinc Ltd.
The Company's/Immediate holding
company's percentage holding (in
%)
As at
31 March 2021
As at
31 March 2020
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
51.63
51.63
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Netherlands THL Zinc Holding
BV
100.00
100.00
100.00
100.00
48 Fujairah Gold FZC
486
487
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
Joint operations
b)
The Group participates in several unincorporated joint operations which involve the joint control of assets used in oil
and gas exploration and producing activities which are as follows:
Oil & Gas blocks/fields
Operating Blocks
Ravva block-Exploration, Development and Production
CB-OS/2 – Exploration
CB-OS/2 - Development & production
RJ-ON-90/1 – Exploration
RJ-ON-90/1 – Development & production
KG-OSN-2009/3 – Exploration
Non-Operating Blocks
KG-ONN-2003/1
Area
Krishna Godavari
Cambay Offshore
Cambay Offshore
Rajasthan Onshore
Rajasthan Onshore
Krishna Godavari Offshore
(%) Participating Interest
As at
31 March 2021
As at
31 March 2020
22.50
60.00
40.00
100.00
70.00
100.00
22.50
60.00
40.00
100.00
70.00
100.00
Krishna Godavari Onshore
49.00
49.00
(1)
South Africa Block1-Exploration was relinquished on 10 September 2019.
Interest in associates and joint ventures
c)
Set out below are the associates and joint ventures of the Group as at 31 March 2021 which, in the opinion of the
management, are not material to the Group. The country of incorporation or registration is also their principal place of
business, and the proportion of ownership interest is the same as the proportion of voting rights held.
Associates
Sr.
No.
1 RoshSkor Township (Pty) Limited
2 Gaurav Overseas Private Limited
3 Raykal Aluminium Company Private Limited
4 Rampia Coal Mines and Energy Private Limited(a)
(a) Struck off by the Ministry of Corporate affairs on 19 April 2021
Jointly controlled entities
Sr.
No.
1 Madanpur South Coal Company Limited
2 Goa Maritime Private Limited
3 Rosh Pinah Health Care (Proprietary) Limited
4 Gergarub Exploration and Mining (Pty) Limited
43 OIL & GAS RESERVES AND RESOURCES
Country of
incorporation
Namibia
India
India
India
Country of
incorporation
India
India
Namibia
Namibia
% Ownership interest
As at
31 March 2021
50.00
50.00
24.50
17.39
As at
31 March 2020
50.00
50.00
24.50
17.39
% Ownership interest
As at
31 March 2021
17.62
50.00
69.00
51.00
As at
31 March 2020
17.62
50.00
69.00
51.00
The Group's gross reserve estimates are updated atleast annually based on the forecast of production profiles,
determined on an asset-by-asset basis, using appropriate petroleum engineering techniques. The estimates of
reserves and resources have been derived in accordance with the Society for Petroleum Engineers “Petroleum
Resources Management System (2018)". The changes to the reserves are generally on account of future development
< BACK TO CONTENTS
projects, application of technologies such as enhanced oil recovery techniques and true up of the estimates. The
management’s internal estimates of hydrocarbon reserves and resources at the year end, are as follows:
Particulars
Country
India
Rajasthan MBA Fields
India
Rajasthan MBA EOR
Rajasthan Block Other Fields India
India
Ravva Fields
India
CBOS/2 Fields
India
Other fields
Total
Gross proved and probable
hydrocarbons initially in place
Gross proved and probable
reserves and resources
Net working interest proved
and probable reserves and
resources
(mmboe)
(mmboe)
(mmboe)
As at
31 March 2021
2,307
-
3,603
704
298
352
7,264
As at
31 March 2020
2,288
-
3,535
692
292
348
7,155
As at
31 March 2021
266
388
470
27
34
44
1,229
As at
31 March 2020
317
317
449
28
40
43
1,194
As at
31 March 2021
186
271
329
6
14
26
832
As at
31 March 2020
222
222
314
6
16
25
805
The Group’s net working interest proved and probable reserves is as follows:
Particulars
Reserves as of 01 April 2019*
Additions/revision during the year
Production during the year
Reserves as of 31 March 2020**
Additions/revision during the year
Production during the year
Reserves as of 31 March 2021***
Proved and probable reserves
Proved and probable reserves
(developed)
Oil
(mmstb)
315
25
(36)
304
(11)
(32)
261
Gas
(bscf)
264
61
(24)
301
(14)
(28)
259
Oil
(mmstb)
178
22
(36)
164
30
(32)
162
Gas
(bscf)
129
38
(24)
143
51
(28)
166
* Includes probable oil reserves of 116.21 mmstb (of which 16.03 mmstb is developed) and probable gas reserves of 89.00 bscf (of which 24.19
bscf is developed).
** Includes probable oil reserves of 132.23 mmstb (of which 21.94 mmstb is developed) and probable gas reserves of 114.73 bscf (of which
42.64 bscf is developed).
*** Includes probable oil reserves of 111.14 mmstb (of which 23.08 mmstb is developed) and probable gas reserves of 128.41 bscf (of which
52.06 bscf is developed).
mmboe = million barrels of oil equivalent
mmstb = million stock tank barrels
bscf = billion standard cubic feet
1 million metric tonnes = 7.4 mmstb
1 standard cubic meter = 35.315 standard cubic feet
MBA = Mangala, Bhagyam & Aishwarya
EOR = Enhanced Oil Recovery
488
489
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
t
fi
o
r
p
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
6
4
4
0
1
,
%
9
1
9
8
.
)
7
5
(
)
%
2
8
1
5
(
.
3
0
5
0
1
,
%
3
5
0
9
.
0
9
7
6
7
,
%
0
3
3
2
1
.
s
e
i
r
a
i
d
i
s
b
u
S
n
a
i
d
n
I
d
e
t
i
i
m
L
a
t
n
a
d
e
V
t
n
e
r
a
P
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
.
r
S
.
o
N
3
1
0
2
,
I
T
C
A
S
E
N
A
P
M
O
C
F
O
I
I
I
E
L
U
D
E
H
C
S
O
T
T
N
A
U
S
R
U
P
N
O
T
A
M
R
O
F
N
I
I
I
L
A
C
N
A
N
I
F
4
4
490
5
7
9
7
,
4
0
0
1
,
5
4
)
3
7
(
8
1
6
6
)
0
(
)
9
(
)
0
(
2
1
)
2
(
0
1
3
7
2
,
2
2
)
9
(
3
)
2
2
(
)
3
3
2
(
-
)
0
9
1
(
-
6
)
2
(
8
2
4
9
3
4
)
6
4
(
1
)
6
0
1
(
%
7
5
8
.
%
8
3
0
.
%
9
0
8
6
.
)
%
2
6
0
(
.
%
5
1
0
.
%
6
5
0
.
)
%
0
0
0
(
.
)
%
8
0
0
(
.
)
%
0
0
0
(
.
%
0
1
0
.
)
%
2
0
0
(
.
%
0
0
0
.
%
2
3
3
2
.
%
9
1
0
.
%
3
0
0
.
)
%
8
0
0
(
.
)
%
9
9
1
(
.
)
%
9
1
0
(
.
%
0
0
0
.
)
%
2
6
1
(
.
%
0
0
0
.
)
%
2
0
0
(
.
%
5
0
0
.
%
5
6
3
.
%
5
7
3
.
)
%
9
3
0
(
.
)
%
1
9
0
(
.
%
1
0
0
.
)
5
(
)
6
4
(
0
-
-
)
3
(
-
0
-
-
-
0
)
%
5
5
4
(
.
)
%
7
7
1
4
(
.
%
5
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
1
3
(
.
%
0
0
0
.
%
1
1
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
1
0
0
.
0
8
9
7
,
0
5
0
1
,
5
4
)
3
7
(
8
1
9
6
)
0
(
)
9
(
)
0
(
2
1
)
2
(
-
)
1
(
)
%
8
4
0
(
.
2
3
7
2
,
-
-
-
-
-
-
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
4
1
%
3
7
2
1
.
-
-
-
-
-
-
-
-
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
2
2
)
9
(
3
)
2
2
(
)
3
3
2
(
-
)
4
0
2
(
-
6
)
2
(
8
2
4
9
3
4
)
6
4
(
1
)
6
0
1
(
%
5
0
9
.
%
9
3
0
.
%
8
7
8
6
.
)
%
3
6
0
(
.
%
6
1
0
.
%
9
5
0
.
)
%
0
0
0
(
.
)
%
8
0
0
(
.
)
%
0
0
0
(
.
%
0
1
0
.
)
%
2
0
0
(
.
%
0
0
0
.
%
5
5
3
2
.
%
9
1
0
.
%
3
0
0
.
)
%
8
0
0
(
.
)
%
1
0
2
(
.
)
%
9
1
0
(
.
%
0
0
0
.
)
%
6
7
1
(
.
%
0
0
0
.
)
%
2
0
0
(
.
%
5
0
0
.
%
9
6
3
.
%
8
7
3
.
)
%
0
4
0
(
.
)
%
1
9
0
(
.
%
1
0
0
.
2
5
9
4
,
3
1
3
2
3
,
5
7
2
3
1
2
3
,
8
2
)
5
6
1
(
)
5
(
1
1
)
2
(
0
2
)
3
(
7
4
5
2
2
6
,
)
0
3
(
8
8
1
)
1
3
5
(
)
1
9
8
(
)
0
8
7
7
(
,
-
)
5
5
3
(
1
0
5
1
,
2
7
5
3
,
1
8
5
1
,
9
5
1
6
%
5
9
7
.
%
4
4
0
.
%
6
1
5
.
%
4
0
0
.
%
9
8
1
5
.
)
%
6
2
0
(
.
)
%
1
0
0
(
.
%
2
0
0
.
%
3
0
0
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
%
8
0
0
.
%
0
0
0
1
.
)
%
5
8
0
(
.
)
%
5
0
0
(
.
%
0
3
0
.
)
%
3
4
1
(
.
%
0
0
0
.
)
%
7
5
0
(
.
)
%
9
4
2
1
(
.
%
1
4
2
.
%
4
7
5
.
%
4
5
2
.
%
9
9
0
.
%
1
0
0
.
d
e
t
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
h
t
r
e
B
o
g
r
a
C
l
a
r
e
n
e
G
g
a
z
V
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
h
t
r
e
B
o
g
r
a
C
i
t
l
u
M
p
d
a
r
a
P
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
r
u
t
n
e
V
e
m
i
t
i
r
a
M
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
r
o
P
a
e
S
a
o
G
t
s
u
r
T
S
O
S
E
d
e
t
i
i
m
L
a
t
n
a
d
e
V
d
e
t
i
i
m
L
n
o
i
t
a
r
o
p
r
o
C
g
n
n
M
a
s
e
S
i
i
d
e
t
i
i
m
L
s
t
r
o
P
e
t
i
l
r
e
t
S
d
e
t
i
i
m
L
r
e
w
o
P
o
b
a
S
i
d
n
a
w
a
T
l
d
e
t
i
i
m
L
s
e
c
r
u
o
s
e
R
a
s
e
S
d
e
t
i
i
m
L
y
g
r
e
n
E
O
C
L
A
M
d
e
t
i
i
m
L
y
n
a
p
m
o
C
m
u
n
m
u
A
t
a
r
a
h
B
i
i
l
d
e
t
i
i
i
m
L
c
n
Z
n
a
t
s
u
d
n
H
i
d
e
t
i
i
m
L
s
e
e
t
S
l
l
e
e
t
s
o
r
t
c
e
E
l
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
s
g
n
d
o
H
a
b
m
a
N
c
n
Z
L
H
T
i
i
i
l
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
c
n
Z
n
o
p
r
o
k
S
i
i
d
e
t
i
i
m
L
s
e
r
u
t
n
e
V
c
n
Z
L
H
T
i
)
b
(
.
c
n
I
)
A
S
U
(
e
t
i
l
r
e
t
S
l
C
Z
F
d
o
G
h
a
r
i
a
u
F
j
d
e
t
i
i
m
L
c
n
Z
L
H
T
i
l
i
V
B
g
n
d
o
H
c
n
Z
L
H
T
i
d
e
t
i
l
i
m
L
r
e
t
s
u
C
n
r
e
t
s
e
W
d
e
t
i
i
i
m
L
y
t
P
a
n
a
m
s
a
T
f
o
s
e
n
M
i
r
e
p
p
o
C
d
e
t
i
i
m
L
y
t
P
s
e
n
m
i
r
e
p
p
o
c
a
g
n
a
a
h
T
l
V
B
o
l
l
e
C
e
t
n
o
M
d
e
t
i
i
i
m
L
n
a
t
n
u
o
F
m
o
o
B
l
s
e
i
r
a
i
d
i
s
b
u
S
n
g
i
e
r
o
F
)
1
1
5
1
(
,
)
%
3
4
2
(
.
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
y
n
a
p
m
o
C
g
n
n
M
n
o
p
r
o
k
S
i
i
i
2
9
9
6
%
2
1
1
.
%
0
0
0
.
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
e
s
u
o
h
t
s
e
u
G
a
c
m
A
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
c
n
z
m
a
N
i
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
< BACK TO CONTENTS
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
-
3
-
)
1
(
7
6
5
)
5
6
(
)
5
1
(
-
)
0
(
6
8
8
2
3
3
1
1
)
0
(
)
0
(
)
0
(
-
0
-
6
4
)
9
3
1
(
)
2
0
1
(
)
6
8
7
(
-
)
3
1
1
(
)
3
2
5
3
(
,
-
-
)
0
(
)
0
(
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
T
%
4
8
4
.
%
0
0
0
.
%
3
0
0
.
)
%
1
0
0
(
.
%
0
0
0
.
)
%
5
5
0
(
.
)
%
3
1
0
(
.
)
%
0
0
0
(
.
%
0
0
0
.
%
6
5
7
.
%
3
8
2
.
%
1
0
0
.
%
1
0
0
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
9
3
0
.
)
%
9
1
1
(
.
)
%
7
8
0
(
.
)
%
1
7
6
(
.
%
0
0
0
.
)
%
6
9
0
(
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3
-
-
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
%
3
6
2
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
3
7
2
.
%
0
0
0
.
%
0
0
0
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
)
%
8
0
0
3
(
.
)
3
9
(
)
%
5
5
4
8
(
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
-
-
-
-
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
-
3
-
)
1
(
4
6
5
)
5
6
(
)
5
1
(
-
)
0
(
6
8
8
2
3
3
1
1
)
0
(
)
0
(
)
0
(
-
0
-
6
4
)
9
3
1
(
)
2
0
1
(
)
9
8
7
(
-
)
3
1
1
(
)
0
3
4
3
(
,
-
-
)
0
(
)
0
(
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
t
fi
o
r
p
%
6
8
4
.
%
0
0
0
.
%
3
0
0
.
)
%
1
0
0
(
.
%
0
0
0
.
)
%
6
5
0
(
.
)
%
3
1
0
(
.
)
%
0
0
0
(
.
%
0
0
0
.
%
4
6
7
.
%
6
8
2
.
%
1
0
0
.
%
1
0
0
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
4
0
.
)
%
0
2
1
(
.
)
%
8
8
0
(
.
)
%
0
8
6
(
.
%
0
0
0
.
)
%
7
9
0
(
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
8
5
0
2
,
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
4
2
7
6
4
1
-
2
8
-
)
0
(
-
1
4
4
4
,
)
6
7
4
(
7
5
5
2
1
,
-
0
0
0
-
2
-
)
5
9
0
2
(
,
)
4
3
9
1
(
,
5
4
8
2
,
-
8
7
3
)
4
5
6
(
%
0
3
3
.
%
4
0
0
.
%
1
1
0
.
%
2
0
0
.
%
0
0
0
.
%
3
1
0
.
%
0
0
0
.
)
%
0
0
0
(
.
%
0
0
0
.
%
6
1
0
2
.
%
3
1
7
.
)
%
6
7
0
(
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
6
3
3
(
.
)
%
1
1
3
(
.
%
7
5
4
.
%
1
6
0
.
%
0
0
0
.
)
%
5
0
1
(
.
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
)
%
6
5
9
2
(
.
)
8
3
1
5
1
(
,
)
%
1
3
4
2
(
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
)
%
0
0
0
(
.
0
-
-
3
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
d
e
t
i
i
i
m
L
y
r
a
t
e
i
r
p
o
r
P
g
n
n
M
n
a
t
n
u
o
M
k
c
a
B
i
i
l
d
e
t
i
l
i
i
m
L
s
g
n
d
o
H
n
e
e
h
s
L
a
t
n
a
d
e
V
i
d
e
t
i
i
i
i
m
L
g
n
n
M
n
e
e
h
s
L
a
t
n
a
d
e
V
i
)
b
(
d
e
t
i
i
i
m
L
e
c
n
a
n
F
n
e
e
h
s
L
n
a
r
o
i
d
e
t
i
i
i
i
m
L
g
n
n
M
n
e
e
h
s
L
n
a
r
o
i
l
l
i
K
l
l
i
K
d
e
t
i
i
m
L
g
n
i
l
l
i
M
n
e
e
h
s
L
i
i
p
h
s
r
e
n
t
r
a
P
e
n
M
n
e
e
h
s
L
i
i
)
b
(
d
e
t
i
i
m
L
d
n
a
e
r
I
l
l
n
o
i
t
a
r
o
p
x
E
a
t
n
a
d
e
V
V
B
o
k
s
a
m
o
k
a
L
)
b
(
d
e
t
i
l
i
i
m
L
e
t
a
v
i
r
P
g
n
d
o
H
s
u
i
t
i
r
u
a
M
G
C
I
)
b
(
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
u
i
t
i
r
u
a
M
G
C
I
d
e
t
i
i
m
L
s
n
o
b
r
a
c
o
r
d
y
H
y
g
r
e
n
E
n
r
i
a
C
d
e
t
i
i
m
L
)
y
t
P
(
a
c
i
r
f
A
h
t
u
o
S
n
r
i
a
C
d
e
t
i
i
m
L
)
e
t
a
v
i
r
P
(
a
k
n
a
L
n
r
i
a
C
)
d
(
d
e
t
i
i
i
m
L
y
r
e
v
o
c
s
D
y
g
r
e
n
E
n
r
i
a
C
d
e
t
i
i
i
m
L
s
g
n
d
o
H
a
d
n
i
l
I
n
r
i
a
C
)
d
(
d
e
t
i
i
m
L
)
2
.
o
N
l
(
n
o
i
t
a
r
o
p
x
E
n
r
i
a
C
)
c
(
)
R
O
C
A
F
(
d
e
t
i
i
m
L
n
o
i
t
a
r
o
p
r
o
C
y
o
l
l
A
o
r
r
e
F
)
d
(
d
e
t
i
i
m
L
y
t
P
a
d
n
i
I
y
g
r
e
n
E
n
r
i
a
C
c
n
I
a
e
r
o
K
e
t
a
r
t
S
n
a
v
A
c
n
I
i
n
a
w
a
T
e
t
a
r
t
S
n
a
v
A
c
n
I
e
t
a
r
t
S
n
a
v
A
)
c
(
d
e
t
i
i
m
L
e
r
u
t
c
u
r
t
s
a
r
f
n
I
d
n
a
y
t
l
a
e
R
r
o
c
a
F
i
s
e
i
r
a
d
s
b
u
s
i
l
l
a
n
i
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
)
c
(
.
d
t
L
r
e
w
o
p
R
O
C
A
F
)
d
o
h
t
e
m
y
t
i
u
q
E
r
e
p
(
s
e
t
a
i
c
o
s
s
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
a
e
s
r
e
v
O
v
a
r
u
a
G
n
a
i
d
n
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
m
u
n
m
u
A
i
i
l
l
a
k
y
a
R
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
g
r
e
n
E
&
s
e
n
M
a
o
C
a
p
m
a
R
i
i
l
.
i
d
t
L
)
y
t
P
(
p
h
s
n
w
o
T
r
o
k
S
h
s
o
R
n
g
i
e
r
o
F
d
e
t
i
l
j
i
m
L
1
k
c
o
B
t
a
r
a
u
G
y
g
r
e
n
E
n
r
i
a
C
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
8
3
9
3
0
4
1
2
3
1
491
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
.
r
S
.
o
N
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
)
%
1
1
5
1
1
(
.
)
0
0
1
(
)
%
2
9
1
1
(
.
0
0
-
)
0
(
)
3
8
8
7
(
,
2
1
7
,
1
1
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
)
%
0
3
7
6
(
.
%
0
0
.
0
0
1
-
-
-
-
5
9
2
0
1
1
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
1
0
8
6
2
.
%
0
0
.
0
0
1
0
0
-
)
0
(
)
7
7
1
8
(
,
2
0
6
,
1
1
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
)
%
8
4
0
7
(
.
%
0
0
.
0
0
1
1
)
0
(
1
0
%
0
0
0
.
)
%
0
0
0
(
.
%
0
0
0
.
%
0
0
0
.
d
e
t
i
i
i
i
m
L
)
y
t
P
(
g
n
n
M
d
n
a
n
o
i
t
a
r
o
p
x
E
b
u
r
a
g
r
e
G
l
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
e
r
a
C
h
t
l
a
e
H
h
a
n
P
h
s
o
R
i
d
e
t
i
i
m
L
y
n
a
p
m
o
C
l
a
o
C
h
t
u
o
S
r
u
p
n
a
d
a
M
n
a
i
d
n
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
e
m
i
t
i
r
a
M
a
o
G
n
g
i
e
r
o
F
8
7
2
,
2
6
)
6
6
6
0
6
(
,
)
%
1
4
7
9
(
.
%
0
0
.
0
0
1
)
a
(
s
n
o
i
t
a
n
m
i
i
l
E
/
s
t
n
e
m
t
s
u
d
A
n
o
i
t
a
d
j
i
l
o
s
n
o
C
l
a
t
o
T
i
.
s
e
c
n
e
r
e
ff
d
P
A
A
G
d
n
a
s
t
n
e
m
j
t
s
u
d
a
n
o
i
t
a
d
i
l
o
s
n
o
c
,
s
n
o
i
t
a
n
m
i
i
l
e
y
n
a
p
m
o
c
r
e
t
n
i
e
d
u
c
n
l
i
s
n
o
i
t
a
n
m
i
i
l
e
/
s
t
n
e
m
j
t
s
u
d
a
n
o
i
t
a
d
i
l
o
s
n
o
C
1
2
1
2
)
a
(
)
b
(
3
2
0
9
9
6
.
0
`
=
Y
P
J
1
,
9
6
2
5
.
4
=
R
A
Z
1
,
9
6
2
5
.
4
=
D
A
N
1
,
3
7
1
0
2
.
=
D
E
A
1
,
6
5
0
1
4
7
.
=
D
S
U
1
,
5
3
2
2
.
3
5
=
D
U
A
1
:
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
t
a
R
e
g
n
a
h
c
x
E
e
g
a
r
e
v
A
`
`
`
6
2
1
2
6
6
.
0
`
=
Y
P
J
1
,
2
3
4
9
.
4
`
=
R
A
Z
1
,
2
3
4
9
.
4
`
=
D
A
N
1
,
3
5
9
`
.
9
1
`
`
`
`
=
D
E
A
1
,
3
7
9
2
.
3
7
=
D
S
U
1
,
1
1
6
7
5
5
.
=
D
U
A
1
:
1
2
0
2
h
c
r
a
M
1
3
t
a
s
a
s
e
t
a
R
e
g
n
a
h
c
x
E
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
t
a
d
u
q
i
i
l
)
d
(
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
r
i
u
q
c
A
)
c
(
n
o
i
t
a
d
u
q
i
i
l
r
e
d
n
U
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
1
2
0
2
h
c
r
a
M
1
3
t
a
s
A
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
t
fi
o
r
p
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
)
d
o
h
t
e
m
y
t
i
u
q
E
r
e
p
(
s
e
r
u
t
n
e
v
t
n
i
o
J
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
.
r
S
.
o
N
492
< BACK TO CONTENTS
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
t
fi
o
r
p
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
)
8
4
3
6
(
,
%
8
9
8
0
1
.
4
8
3
%
7
7
5
4
.
)
2
3
7
6
(
,
%
2
0
1
0
1
.
5
9
8
9
6
,
%
3
9
7
2
1
.
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
.
r
S
.
o
N
s
e
i
r
a
i
d
i
s
b
u
S
n
a
i
d
n
I
d
e
t
i
i
m
L
a
t
n
a
d
e
V
t
n
e
r
a
P
5
0
7
6
,
)
4
1
1
(
)
1
3
2
(
0
3
7
)
9
4
(
)
1
4
(
)
0
(
2
3
)
0
(
0
1
-
-
)
2
2
(
2
)
4
(
)
2
1
1
(
-
)
3
2
(
)
8
0
2
(
)
5
1
2
(
-
)
4
(
2
-
-
1
)
2
5
(
)
8
9
2
(
%
6
9
1
.
%
6
9
3
.
)
%
3
5
2
1
(
.
%
5
8
0
.
%
1
7
0
.
%
1
0
0
.
%
0
0
0
.
)
%
4
5
0
(
.
)
%
7
1
0
(
.
%
0
0
0
.
%
0
0
0
.
%
8
3
0
.
%
2
9
1
.
%
7
0
0
.
)
%
3
0
0
(
.
%
7
5
3
.
%
9
3
0
.
%
0
0
0
.
%
9
6
3
.
%
0
0
0
.
%
7
0
0
.
%
0
0
0
.
%
0
0
0
.
%
2
1
5
.
%
9
8
0
.
)
%
3
0
0
(
.
)
%
2
0
0
(
.
4
0
)
0
(
)
1
(
)
3
(
-
)
0
(
-
-
-
-
)
1
(
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
%
4
4
0
.
%
0
0
0
.
)
%
5
0
0
(
.
)
%
5
1
0
(
.
)
%
1
4
0
(
.
%
0
0
0
.
)
%
3
0
0
(
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
5
0
8
6
,
)
8
1
1
(
)
1
3
2
(
0
3
7
)
8
4
(
)
8
3
(
)
0
(
2
3
)
0
(
0
1
-
-
)
%
6
0
0
(
.
)
2
2
(
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
2
)
4
(
)
2
1
1
(
-
)
3
2
(
)
8
0
2
(
)
5
1
2
(
-
)
4
(
2
-
-
1
)
2
5
(
)
8
9
2
(
%
7
7
1
.
%
7
4
3
.
)
%
5
9
0
1
(
.
)
%
2
1
2
0
1
(
.
%
2
7
0
.
%
7
5
0
.
%
1
0
0
.
%
0
0
0
.
)
%
8
4
0
(
.
)
%
5
1
0
(
.
%
0
0
0
.
%
0
0
0
.
%
3
3
0
.
%
8
6
1
.
%
6
0
0
.
)
%
3
0
0
(
.
%
2
1
3
.
%
5
3
0
.
%
0
0
0
.
%
3
2
3
.
%
0
0
0
.
%
6
0
0
.
%
0
0
0
.
%
0
0
0
.
%
7
4
4
.
%
8
7
0
.
)
%
3
0
0
(
.
8
4
9
3
,
1
1
3
0
4
,
0
3
2
5
8
2
3
,
0
1
)
3
3
2
(
)
5
(
0
2
)
2
(
8
)
1
(
7
4
3
9
4
3
,
)
7
1
(
9
8
1
)
6
5
4
(
)
6
8
8
(
)
0
1
7
7
(
,
-
)
0
7
1
(
3
3
5
1
,
9
4
6
3
,
2
9
6
1
,
)
2
(
0
2
5
4
9
0
1
,
)
6
3
2
1
(
,
)
%
2
0
0
(
.
1
%
3
2
7
.
%
2
4
0
.
%
1
0
6
.
%
2
0
0
.
%
8
7
3
7
.
)
%
3
4
0
(
.
)
%
1
0
0
(
.
%
4
0
0
.
)
%
0
0
0
(
.
%
1
0
0
.
)
%
0
0
0
(
.
%
9
0
0
.
%
9
3
6
.
)
%
3
8
0
(
.
)
%
3
0
0
(
.
%
5
3
0
.
%
0
0
0
.
)
%
2
6
1
(
.
)
%
1
3
0
(
.
)
%
1
1
4
1
(
.
%
1
8
2
.
%
8
6
6
.
%
0
1
3
.
%
5
9
0
.
)
%
0
0
0
(
.
)
%
6
2
2
(
.
%
0
0
2
.
%
0
0
0
.
d
e
t
i
i
m
L
e
t
a
v
i
r
P
h
t
r
e
B
o
g
r
a
C
l
a
r
e
n
e
G
g
a
z
V
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
h
t
r
e
B
o
g
r
a
C
i
t
l
u
M
p
d
a
r
a
P
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
e
r
u
t
n
e
V
e
m
i
t
i
r
a
M
d
e
t
i
i
m
L
e
t
a
v
i
r
P
t
r
o
P
a
e
S
a
o
G
t
s
u
r
T
S
O
S
E
d
e
t
i
i
m
L
a
t
n
a
d
e
V
d
e
t
i
i
m
L
n
o
i
t
a
r
o
p
r
o
C
g
n
n
M
a
s
e
S
i
i
d
e
t
i
i
m
L
s
t
r
o
P
e
t
i
l
r
e
t
S
d
e
t
i
i
m
L
r
e
w
o
P
o
b
a
S
i
d
n
a
w
a
T
l
d
e
t
i
i
m
L
s
e
c
r
u
o
s
e
R
a
s
e
S
d
e
t
i
i
m
L
y
g
r
e
n
E
O
C
L
A
M
d
e
t
i
i
m
L
y
n
a
p
m
o
C
m
u
n
m
u
A
t
a
r
a
h
B
i
i
l
d
e
t
i
i
i
m
L
c
n
Z
n
a
t
s
u
d
n
H
i
*
*
d
e
t
i
i
m
L
s
e
e
t
S
l
l
e
e
t
s
o
r
t
c
e
E
l
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
s
e
i
r
a
i
d
i
s
b
u
S
n
g
i
e
r
o
F
d
e
t
i
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
s
g
n
d
o
H
a
b
m
a
N
c
n
Z
L
H
T
i
i
i
l
l
i
V
B
g
n
d
o
H
c
n
Z
L
H
T
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
c
n
Z
n
o
p
r
o
k
S
i
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
y
n
a
p
m
o
C
g
n
n
M
n
o
p
r
o
k
S
i
i
i
d
e
t
i
i
m
L
s
e
r
u
t
n
e
V
c
n
Z
L
H
T
i
*
*
*
.
c
n
I
)
A
S
U
(
e
t
i
l
r
e
t
S
l
C
Z
F
d
o
G
h
a
r
i
a
u
F
j
d
e
t
i
i
m
L
c
n
Z
L
H
T
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
e
s
u
o
h
t
s
e
u
G
a
c
m
A
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
c
n
z
m
a
N
i
d
e
t
i
i
i
m
L
y
t
P
a
n
a
m
s
a
T
f
o
s
e
n
M
i
r
e
p
p
o
C
d
e
t
i
i
m
L
y
t
P
s
e
n
m
i
r
e
p
p
o
c
a
g
n
a
a
h
T
l
V
B
o
l
l
e
C
e
t
n
o
M
d
e
t
i
i
i
m
L
n
a
t
n
u
o
F
m
o
o
B
l
d
e
t
i
l
i
m
L
r
e
t
s
u
C
n
r
e
t
s
e
W
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
5
1
493
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
)
4
1
2
(
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
7
1
)
4
(
)
1
(
-
)
5
(
)
6
(
-
-
8
3
8
4
7
7
)
1
(
-
)
1
(
-
)
0
(
-
-
-
)
0
7
(
0
4
4
)
6
4
3
(
)
7
9
7
1
(
,
-
)
0
(
)
0
(
0
)
0
(
I
C
T
%
7
6
3
.
)
%
9
2
0
(
.
%
7
0
0
.
%
2
0
0
.
%
0
0
0
.
%
9
0
0
.
%
0
1
0
.
%
0
0
0
.
%
0
0
0
.
)
%
9
3
4
1
(
.
)
%
9
2
3
1
(
.
%
2
0
0
.
%
0
0
0
.
%
2
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
2
1
.
)
%
5
5
7
(
.
%
4
9
5
.
%
5
8
0
3
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
1
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
%
6
1
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
3
2
1
%
6
6
4
1
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
-
-
-
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
-
)
0
(
%
0
0
0
.
)
%
0
0
0
(
.
)
5
1
2
(
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
7
1
)
4
(
)
1
(
-
)
5
(
)
6
(
-
-
8
3
8
4
7
7
)
1
(
-
)
1
(
-
)
0
(
-
-
-
)
0
7
(
0
4
4
)
6
4
3
(
)
0
2
9
1
(
,
-
)
0
(
)
0
(
0
)
0
(
t
fi
o
r
p
%
3
2
3
.
)
%
6
2
0
(
.
%
6
0
0
.
%
2
0
0
.
%
0
0
0
.
%
8
0
0
.
%
9
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
8
5
2
1
(
.
)
%
1
6
1
1
(
.
%
2
0
0
.
%
0
0
0
.
%
2
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
5
0
1
.
)
%
0
6
6
(
.
%
9
1
5
.
%
1
8
8
2
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
8
1
2
1
,
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
5
2
4
6
5
1
-
-
0
)
8
(
8
4
1
1
6
9
9
,
7
9
2
6
,
)
2
9
4
(
)
1
(
-
1
0
-
2
-
)
5
3
2
2
(
,
)
6
2
9
1
(
,
1
2
3
3
,
%
3
2
2
.
%
5
0
0
.
%
2
1
0
.
%
3
0
0
.
%
0
0
0
.
%
7
2
0
.
%
0
0
0
.
%
0
0
0
.
)
%
1
0
0
(
.
%
3
2
8
1
.
%
3
5
1
1
.
)
%
0
9
0
(
.
)
%
0
0
0
(
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
9
0
4
(
.
)
%
3
5
3
(
.
%
8
0
6
.
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
)
2
1
1
7
1
(
,
)
%
2
3
1
3
(
.
0
-
3
1
)
0
(
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
%
0
0
0
.
)
%
0
0
0
(
.
d
e
t
i
i
i
m
L
y
r
a
t
e
i
r
p
o
r
P
g
n
n
M
n
a
t
n
u
o
M
k
c
a
B
i
i
l
d
e
t
i
l
i
i
m
L
s
g
n
d
o
H
n
e
e
h
s
L
a
t
n
a
d
e
V
i
d
e
t
i
i
i
i
m
L
g
n
n
M
n
e
e
h
s
L
a
t
n
a
d
e
V
i
d
e
t
i
i
i
m
L
e
c
n
a
n
F
n
e
e
h
s
L
n
a
r
o
i
d
e
t
i
i
i
i
m
L
g
n
n
M
n
e
e
h
s
L
n
a
r
o
i
l
l
i
K
l
l
i
K
d
e
t
i
i
m
L
g
n
i
l
l
i
M
n
e
e
h
s
L
i
i
p
h
s
r
e
n
t
r
a
P
e
n
M
n
e
e
h
s
L
i
i
d
e
t
i
i
m
L
d
n
a
e
r
I
l
l
n
o
i
t
a
r
o
p
x
E
a
t
n
a
d
e
V
V
B
o
k
s
a
m
o
k
a
L
d
e
t
i
i
m
L
s
n
o
b
r
a
c
o
r
d
y
H
y
g
r
e
n
E
n
r
i
a
C
d
e
t
i
i
m
L
)
y
t
P
(
a
c
i
r
f
A
h
t
u
o
S
n
r
i
a
C
d
e
t
i
i
m
L
)
e
t
a
v
i
r
P
(
a
k
n
a
L
n
r
i
a
C
d
e
t
i
l
i
i
m
L
e
t
a
v
i
r
P
g
n
d
o
H
s
u
i
t
i
r
u
a
M
G
C
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
u
i
t
i
r
u
a
M
G
C
I
d
e
t
i
i
i
m
L
y
r
e
v
o
c
s
D
y
g
r
e
n
E
n
r
i
a
C
d
e
t
i
i
i
m
L
s
g
n
d
o
H
a
d
n
i
l
I
n
r
i
a
C
d
e
t
i
i
m
L
)
2
.
o
N
l
(
n
o
i
t
a
r
o
p
x
E
n
r
i
a
C
i
s
e
i
r
a
d
s
b
u
s
i
d
e
t
i
i
m
L
y
t
P
a
d
n
i
I
y
g
r
e
n
E
n
r
i
a
C
l
l
a
n
i
s
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
c
n
I
a
e
r
o
K
e
t
a
r
t
S
n
a
v
A
c
n
I
i
n
a
w
a
T
e
t
a
r
t
S
n
a
v
A
c
n
I
e
t
a
r
t
S
n
a
v
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
g
r
e
n
E
&
s
e
n
M
a
o
C
a
p
m
a
R
i
i
l
)
d
o
h
t
e
m
y
t
i
u
q
E
r
e
p
(
s
e
r
u
t
n
e
v
t
n
i
o
J
.
i
d
t
L
)
y
t
P
(
p
h
s
n
w
o
T
r
o
k
S
h
s
o
R
n
g
i
e
r
o
F
)
d
o
h
t
e
m
y
t
i
u
q
E
r
e
p
(
s
e
t
a
i
c
o
s
s
A
d
e
t
i
i
m
L
e
t
a
v
i
r
P
s
a
e
s
r
e
v
O
v
a
r
u
a
G
n
a
i
d
n
I
d
e
t
i
i
m
L
y
n
a
p
m
o
C
l
a
o
C
h
t
u
o
S
r
u
p
n
a
d
a
M
n
a
i
d
n
I
d
e
t
i
i
m
L
e
t
a
v
i
r
P
e
m
i
t
i
r
a
M
a
o
G
d
e
t
i
l
j
i
m
L
1
k
c
o
B
t
a
r
a
u
G
y
g
r
e
n
E
n
r
i
a
C
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
.
r
S
.
o
N
494
6
1
7
1
8
1
9
1
0
2
1
2
2
2
3
2
4
2
5
2
6
2
7
2
8
2
9
2
0
3
1
3
2
3
3
3
4
3
5
3
6
3
7
3
1
2
1
1
2
.
r
S
.
o
N
1
< BACK TO CONTENTS
l
a
t
o
t
n
i
e
r
a
h
S
r
e
h
t
o
n
i
e
r
a
h
S
)
I
C
T
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
)
I
C
O
(
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
s
s
o
l
d
n
a
t
fi
o
r
p
n
i
e
r
a
h
S
l
a
t
o
t
s
s
e
l
s
t
e
s
s
a
l
a
t
o
T
(
s
t
e
s
s
A
t
e
N
)
s
e
i
t
i
l
i
b
a
i
l
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
Y
0
2
0
2
h
c
r
a
M
1
3
t
a
s
A
y
t
i
t
n
e
e
h
t
f
o
e
m
a
N
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
I
C
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
t
fi
o
r
p
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
s
e
r
o
r
c
n
i
`
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
0
)
2
1
2
5
(
,
)
5
2
8
,
5
(
)
%
1
0
0
(
.
%
8
4
9
8
.
%
0
0
.
0
0
1
-
3
3
4
9
3
8
%
0
0
0
.
%
1
6
1
5
.
%
0
0
.
0
0
1
0
)
5
4
6
5
(
,
)
4
6
6
,
6
(
)
%
1
0
0
(
.
%
1
7
4
8
.
1
%
0
0
0
.
)
9
5
8
3
6
(
,
)
%
8
8
6
1
1
(
.
%
0
0
.
0
0
1
5
3
6
,
4
5
%
0
0
.
0
0
1
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
e
r
a
C
h
t
l
a
e
H
h
a
n
P
h
s
o
R
i
a
s
n
o
i
t
a
n
m
i
i
l
E
/
s
t
n
e
m
t
s
u
d
A
n
o
i
t
a
d
j
i
l
o
s
n
o
C
l
a
t
o
T
n
g
i
e
r
o
F
8
9
9
1
5
6
.
0
`
=
Y
P
J
1
,
`
1
3
9
7
4
.
=
R
A
Z
1
,
1
3
9
7
4
.
=
D
A
N
1
,
5
9
8
2
.
9
1
=
D
E
A
1
,
1
0
6
8
.
0
7
=
D
S
U
1
,
3
1
0
3
.
8
4
=
D
U
A
1
:
0
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
t
a
R
e
g
n
a
h
c
x
E
e
g
a
r
e
v
A
.
0
`
`
`
`
`
`
`
`
`
2
7
9
1
9
6
=
Y
P
J
1
,
2
1
8
1
4
.
=
R
A
Z
1
,
2
1
8
1
4
.
=
D
A
N
1
,
5
6
3
.
0
2
=
D
E
A
1
,
9
0
1
8
.
4
7
=
D
S
U
1
,
3
2
4
9
.
5
4
=
D
U
A
1
:
0
2
0
2
h
c
r
a
M
1
3
t
a
s
a
s
e
t
a
R
e
g
n
a
h
c
x
E
i
.
s
e
c
n
e
r
e
ff
d
P
A
A
G
d
n
a
s
t
n
e
m
j
t
s
u
d
a
n
o
i
t
a
d
i
l
o
s
n
o
c
,
s
n
o
i
t
a
n
m
i
i
l
e
y
n
a
p
m
o
c
r
e
t
n
i
e
d
u
c
n
l
i
s
n
o
i
t
a
n
m
i
i
l
e
/
s
t
n
e
m
j
t
s
u
d
a
n
o
i
t
a
d
i
l
o
s
n
o
C
a
`
n
o
i
t
a
d
u
q
i
i
l
r
e
d
n
U
*
*
*
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
s
a
h
c
r
u
P
*
*
r
a
e
y
t
n
e
r
r
u
c
e
h
t
g
n
i
r
u
d
d
e
t
a
r
o
p
r
o
c
n
I
*
i
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
d
n
a
r
o
t
c
e
r
i
D
e
m
T
-
e
o
h
W
i
l
l
a
g
g
u
D
l
i
n
u
S
i
r
o
t
c
e
r
i
D
e
m
T
-
e
o
h
W
d
n
a
n
a
m
l
i
r
i
a
h
C
-
e
c
V
e
v
i
t
u
c
e
x
E
l
a
w
r
a
g
A
n
v
a
N
i
P
L
L
.
o
C
&
i
o
b
i
l
t
a
B
.
.
R
S
r
o
F
s
t
n
a
t
n
u
o
c
c
A
d
e
r
e
t
r
a
h
C
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
e
t
a
d
n
e
v
e
f
o
t
r
o
p
e
r
r
u
o
r
e
p
s
A
6
5
8
0
2
A
.
i
o
N
p
h
s
r
e
b
m
e
M
I
S
C
I
1
2
0
2
y
a
M
3
1
:
e
t
a
D
i
l
h
e
D
w
e
N
:
e
c
a
P
l
r
e
c
ffi
O
e
c
n
a
i
l
p
m
o
C
d
n
a
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
l
a
y
i
s
a
w
a
H
a
n
r
e
r
P
5
8
6
1
9
2
7
0
N
D
I
3
0
3
6
0
0
0
0
N
D
I
5
0
0
0
0
3
E
/
E
3
0
0
1
0
3
.
o
N
n
o
i
t
a
r
t
s
g
e
R
m
i
r
i
F
I
A
C
I
0
7
8
1
4
:
i
o
N
p
h
s
r
e
b
m
e
M
1
2
0
2
y
a
M
3
1
:
e
t
a
D
i
a
b
m
u
M
:
e
c
a
P
l
i
n
o
S
r
i
h
d
u
S
r
e
p
r
e
n
t
r
a
P
495
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
1
5
0
0
1
0
0
1
0
0
1
0
0
0
.
0
0
0
.
0
0
0
.
2
2
)
9
(
3
1
)
1
(
-
3
2
)
0
1
(
3
-
-
-
2
9
4
6
.
0
0
0
.
0
8
9
7
,
4
9
5
2
,
4
7
5
0
1
,
9
2
6
2
2
,
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
4
7
0
0
0
.
5
4
0
0
0
.
)
4
0
2
(
-
-
5
4
-
)
4
0
2
(
7
6
2
3
,
0
0
0
.
)
3
7
(
)
4
2
(
)
7
9
(
3
5
8
3
,
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
-
-
)
2
(
6
0
0
0
.
8
2
4
0
0
0
.
9
3
4
0
0
0
.
)
6
4
(
0
0
0
.
1
0
0
0
.
)
6
0
1
(
-
-
-
1
-
-
-
-
-
-
-
)
2
(
7
8
2
4
9
3
4
)
6
4
(
1
)
6
0
1
(
-
-
-
-
-
-
3
1
7
2
4
0
0
0
.
4
6
5
6
2
2
0
9
7
6
8
6
2
,
-
-
-
-
2
-
-
-
-
-
-
-
7
-
-
-
-
9
2
6
5
3
0
2
8
9
5
)
1
3
5
(
)
3
3
(
8
0
2
8
8
1
0
3
0
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
V
B
o
l
l
e
C
e
t
n
o
M
d
e
t
i
i
m
L
y
t
P
n
a
i
l
a
r
t
s
u
A
-
D
U
A
h
c
r
a
M
o
t
l
i
r
p
A
s
e
n
M
i
r
e
p
p
o
C
a
g
n
a
a
h
T
l
E
E
P
U
R
r
a
l
l
o
D
n
a
i
l
a
r
t
s
u
A
-
D
U
A
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
i
m
L
y
t
P
a
n
a
m
s
a
T
i
d
e
t
i
i
m
L
y
n
a
p
m
o
C
f
o
s
e
n
M
i
r
e
p
p
o
C
4
1
4
3
1
,
7
2
7
5
4
,
8
6
4
1
3
,
5
4
8
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
E
E
P
U
R
d
e
t
i
i
i
m
L
c
n
Z
n
a
t
s
u
d
n
H
i
7
5
2
3
3
0
7
2
5
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
i
m
L
y
g
r
e
n
E
O
C
L
A
M
5
7
2
1
,
0
2
9
)
7
5
0
7
(
,
2
0
7
6
,
i
t
a
r
i
m
E
-
D
E
A
h
c
r
a
M
o
t
l
i
r
p
A
m
a
h
r
i
D
E
E
P
U
R
l
C
Z
F
d
o
G
h
a
r
i
a
u
F
j
5
6
0
9
,
8
7
2
2
1
,
6
7
0
2
3
,
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
r
e
w
o
P
o
b
a
S
i
d
n
a
w
a
T
l
-
2
-
0
0
0
.
0
0
0
.
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
E
E
P
U
R
1
.
c
n
I
)
A
S
U
(
e
t
i
l
r
e
t
S
d
e
t
i
m
L
i
3
0
5
1
,
6
7
3
1
,
5
2
1
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
s
e
r
u
t
n
e
V
c
n
Z
L
H
T
i
0
1
r
a
l
l
o
D
d
e
t
i
m
L
i
6
6
8
3
6
3
,
0
4
4
3
,
2
3
1
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
5
1
5
1
,
6
9
0
3
,
9
8
4
1
,
3
9
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
l
i
V
B
g
n
d
o
H
c
n
Z
L
H
T
i
.
i
d
t
L
c
n
Z
L
H
T
7
2
2
6
7
0
6
6
8
4
5
9
4
0
1
1
9
0
3
,
0
8
5
1
,
)
1
1
5
1
(
,
1
3
2
1
0
6
1
,
0
0
3
2
,
8
9
6
7
5
6
2
,
5
1
7
4
,
8
5
0
2
,
7
0
0
0
0
0
i
i
n
a
b
m
a
N
-
D
A
N
r
a
l
l
o
D
i
i
n
a
b
m
a
N
-
D
A
N
r
a
l
l
o
D
i
i
n
a
b
m
a
N
-
D
A
N
h
c
r
a
M
o
t
l
i
r
p
A
h
c
r
a
M
o
t
l
i
r
p
A
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
)
y
r
a
t
e
i
r
p
o
r
P
(
s
g
n
d
o
H
i
l
i
i
a
b
m
a
N
c
n
Z
L
H
T
i
.
d
t
L
i
c
n
Z
n
o
p
r
o
k
S
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
i
y
n
a
p
m
o
C
g
n
n
M
n
o
p
r
o
k
S
i
i
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
r
a
l
l
o
D
n
a
c
i
r
f
A
h
t
u
o
S
-
R
A
Z
h
c
r
a
M
o
t
l
i
r
p
A
d
n
a
R
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
d
e
t
i
i
m
L
)
y
r
a
t
e
i
r
p
o
r
P
(
i
i
i
g
n
n
M
n
a
t
n
u
o
M
k
c
a
B
l
8
1
i
i
n
a
b
m
a
N
-
D
A
N
h
c
r
a
M
o
t
l
i
r
p
A
)
y
r
a
t
e
i
r
p
o
r
P
(
c
n
z
m
a
N
i
6
1
r
a
l
l
o
D
d
e
t
i
m
L
i
i
i
n
a
b
m
a
N
-
D
A
N
h
c
r
a
M
o
t
l
i
r
p
A
e
s
u
o
h
t
s
e
u
G
a
c
m
A
i
7
1
)
s
e
r
o
r
c
n
i
`
(
f
o
%
g
n
i
d
l
o
h
e
r
a
h
s
d
e
s
o
p
o
r
P
-
d
n
e
d
i
i
v
D
d
e
s
o
p
o
r
P
l
a
n
i
F
d
n
e
d
i
i
v
D
n
o
i
t
a
x
a
T
)
t
i
d
e
r
c
(
n
o
i
t
a
x
a
T
)
y
r
a
i
d
i
s
b
u
S
/
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
/
t
fi
o
r
P
)
s
s
o
L
(
r
e
t
f
A
r
o
f
)
s
s
o
L
(
/
n
o
i
t
a
x
a
T
e
r
o
f
e
B
s
t
n
e
m
t
s
e
v
n
I
r
e
v
o
n
r
u
T
g
n
i
d
u
l
c
x
e
(
l
a
t
o
T
l
a
t
o
T
s
e
v
r
e
s
e
R
e
r
a
h
S
n
i
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
s
t
e
s
s
A
s
u
l
p
r
u
S
&
l
a
t
i
p
a
C
y
c
n
e
r
r
u
c
g
n
i
t
r
o
p
e
R
g
n
i
t
r
o
p
e
R
d
o
i
r
e
P
y
r
a
i
d
i
s
b
u
S
e
h
t
f
o
e
m
a
N
.
I
S
.
o
N
l
4
1
0
2
,
s
e
u
R
)
s
t
n
u
o
c
c
A
l
i
(
s
e
n
a
p
m
o
C
f
o
5
e
u
r
h
t
i
w
d
a
e
r
9
2
1
n
o
i
t
c
e
S
f
o
)
3
(
n
o
i
t
c
e
s
-
b
u
s
o
t
o
s
i
v
o
r
p
t
s
r
fi
o
t
t
n
a
u
s
r
u
p
s
e
i
r
a
i
d
i
s
b
u
S
f
o
s
e
r
u
t
a
e
f
t
n
e
i
l
a
S
I
-
C
O
A
M
R
O
F
496
0
0
0
.
0
5
0
1
,
7
1
7
7
6
7
1
,
4
8
7
9
,
5
2
0
1
,
0
9
7
8
,
2
4
7
3
1
,
1
3
7
4
,
1
2
2
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
i
i
m
u
n
m
u
A
t
a
r
a
h
B
l
< BACK TO CONTENTS
)
s
e
r
o
r
c
n
i
`
(
f
o
%
g
n
i
d
l
o
h
e
r
a
h
s
d
e
s
o
p
o
r
P
-
d
n
e
d
i
i
v
D
d
e
s
o
p
o
r
P
l
a
n
i
F
d
n
e
d
i
i
v
D
n
o
i
t
a
x
a
T
)
t
i
d
e
r
c
(
n
o
i
t
a
x
a
T
)
y
r
a
i
d
i
s
b
u
S
/
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
/
t
fi
o
r
P
)
s
s
o
L
(
r
e
t
f
A
r
o
f
)
s
s
o
L
(
/
n
o
i
t
a
x
a
T
e
r
o
f
e
B
s
t
n
e
m
t
s
e
v
n
I
r
e
v
o
n
r
u
T
g
n
i
d
u
l
c
x
e
(
l
a
t
o
T
l
a
t
o
T
s
e
v
r
e
s
e
R
e
r
a
h
S
n
i
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
s
t
e
s
s
A
s
u
l
p
r
u
S
&
l
a
t
i
p
a
C
y
c
n
e
r
r
u
c
g
n
i
t
r
o
p
e
R
g
n
i
t
r
o
p
e
R
d
o
i
r
e
P
y
r
a
i
d
i
s
b
u
S
e
h
t
f
o
e
m
a
N
l
4
1
0
2
,
s
e
u
R
)
s
t
n
u
o
c
c
A
l
i
(
s
e
n
a
p
m
o
C
f
o
5
e
u
r
h
t
i
w
d
a
e
r
9
2
1
n
o
i
t
c
e
S
f
o
)
3
(
n
o
i
t
c
e
s
-
b
u
s
o
t
o
s
i
v
o
r
p
t
s
r
fi
o
t
t
n
a
u
s
r
u
p
s
e
i
r
a
i
d
i
s
b
u
S
f
o
s
e
r
u
t
a
e
f
t
n
e
i
l
a
S
I
-
C
O
A
M
R
O
F
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
0
.
0
0
0
.
-
3
0
0
0
.
)
1
(
0
0
0
.
-
0
0
0
.
)
5
6
(
0
0
0
.
)
5
1
(
0
0
0
.
0
0
0
.
)
0
(
)
9
(
-
0
0
-
1
-
-
-
3
)
0
(
-
)
4
6
(
)
5
1
(
)
0
(
-
-
-
-
-
-
-
)
5
1
(
)
4
2
(
9
0
1
0
0
0
.
6
8
8
7
2
9
8
-
-
-
-
-
-
-
-
0
1
6
5
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
1
1
)
0
(
)
0
(
)
0
(
-
0
0
0
-
-
-
-
-
-
-
1
1
)
0
(
)
0
(
)
0
(
-
0
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2
-
1
-
-
-
4
1
5
4
5
5
2
7
6
4
1
-
6
9
5
4
0
5
2
7
6
4
1
-
1
8
-
)
5
(
0
0
0
-
0
-
0
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
l
i
s
g
n
d
o
H
n
e
e
h
s
L
a
t
n
a
d
e
V
i
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
i
i
g
n
n
M
n
e
e
h
s
L
a
t
n
a
d
e
V
i
r
a
l
l
o
D
d
e
t
i
m
L
i
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
i
i
g
n
n
M
n
e
e
h
s
L
n
a
r
o
i
l
l
i
K
1
2
r
a
l
l
o
D
d
e
t
i
m
L
i
r
a
l
l
o
D
d
e
t
i
m
L
i
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
i
e
c
n
a
n
F
n
e
e
h
s
L
n
a
r
o
i
l
l
i
K
2
2
1
d
e
t
i
m
L
i
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
i
m
L
g
n
i
l
l
i
M
n
e
e
h
s
L
i
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
E
E
P
U
R
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
i
p
h
s
r
e
n
t
r
a
P
e
n
M
n
e
e
h
s
L
i
i
d
e
t
i
i
m
L
s
t
r
o
P
e
t
i
l
r
e
t
S
3
2
4
2
5
2
7
1
5
8
2
5
)
6
3
(
7
4
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
o
g
r
a
C
l
a
r
e
n
e
G
g
a
z
V
i
6
2
E
E
P
U
R
d
e
t
i
i
m
L
e
t
a
v
i
r
P
h
t
r
e
B
1
1
0
3
,
8
6
5
5
1
,
9
1
0
7
,
8
3
5
5
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
l
i
s
g
n
d
o
H
a
d
n
i
I
n
r
i
a
C
7
2
-
-
-
)
0
(
)
0
(
)
0
(
0
-
0
0
0
0
2
)
0
(
)
4
(
0
0
4
2
)
0
2
7
1
(
,
0
2
7
1
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
l
i
g
n
d
o
H
s
u
i
t
i
r
u
a
M
G
C
I
r
a
l
l
o
D
1
d
e
t
i
i
m
L
e
t
a
v
i
r
P
)
2
8
2
(
2
8
2
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
)
y
t
P
(
a
c
i
r
f
A
h
t
u
o
S
n
r
i
a
C
0
3
r
a
l
l
o
D
d
e
t
i
m
L
i
r
a
l
l
o
D
d
e
t
i
m
L
i
)
7
1
7
1
(
,
7
1
7
1
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
i
y
r
e
v
o
c
s
D
y
g
r
e
n
E
n
r
i
a
C
3
d
e
t
i
m
L
i
e
t
a
v
i
r
P
s
u
i
t
i
r
u
a
M
G
C
I
1
d
e
t
i
m
L
i
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
)
2
.
o
N
l
(
n
o
i
t
a
r
o
p
x
E
n
r
i
a
C
3
d
e
t
i
m
L
i
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
j
t
a
r
a
u
G
y
g
r
e
n
E
n
r
i
a
C
5
3
r
a
l
l
o
D
d
e
t
i
i
m
L
1
k
c
o
B
l
)
0
(
)
0
(
)
0
(
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
r
a
l
l
o
D
o
t
y
r
a
u
n
a
J
r
e
b
m
e
c
e
D
y
t
P
a
d
n
i
I
y
g
r
e
n
E
n
r
i
a
C
3
d
e
t
i
m
L
i
6
3
497
0
0
0
.
2
3
3
6
7
2
9
0
6
5
4
4
3
,
3
1
9
4
5
5
5
,
5
9
9
9
,
9
1
9
1
,
2
2
5
2
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
y
g
r
e
n
E
n
r
i
a
C
8
2
r
a
l
l
o
D
d
e
t
i
m
L
i
9
1
)
7
5
4
(
)
5
2
7
1
(
,
9
4
2
1
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
)
e
t
a
v
i
r
P
(
a
k
n
a
L
n
r
i
a
C
9
2
r
a
l
l
o
D
d
e
t
i
i
m
L
s
n
o
b
r
a
c
o
r
d
y
H
1
2
3
4
5
6
7
8
9
1
1
2
1
3
1
4
1
5
1
.
I
S
.
o
N
9
1
0
2
1
3
2
3
3
3
4
3
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
< BACK TO CONTENTS
4
7
5
9
.
0
0
0
.
2
3
7
2
,
)
4
5
7
2
(
,
)
2
2
(
1
7
7
4
,
9
0
4
6
0
1
5
,
1
3
3
1
1
,
5
7
3
4
,
9
4
8
1
,
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
l
s
e
e
t
S
l
e
e
t
s
o
r
t
c
e
E
l
3
5
E
E
P
U
R
d
e
t
i
m
L
i
3
2
0
9
9
6
.
0
`
`
`
`
=
Y
P
J
1
,
9
6
2
5
.
4
=
R
A
Z
1
,
9
6
2
5
.
4
=
D
A
N
1
,
3
7
1
0
2
.
=
D
E
A
1
,
6
5
0
1
4
7
.
=
D
S
U
1
,
5
3
2
2
.
3
5
`
3
5
9
`
6
2
1
2
6
6
.
0
`
=
Y
P
J
1
,
2
3
4
9
.
4
`
=
R
A
Z
1
,
2
3
4
9
.
4
`
=
D
A
N
1
,
.
9
1
`
=
D
E
A
1
,
3
7
9
2
.
3
7
`
=
D
S
U
1
,
1
1
6
7
5
5
.
`
=
D
U
A
1
:
1
2
0
2
h
c
r
a
M
1
3
t
a
s
a
s
e
t
a
R
e
g
n
a
h
c
x
E
)
a
=
D
U
A
1
:
1
2
0
2
h
c
r
a
M
1
3
d
e
d
n
e
r
a
e
y
e
h
t
r
o
f
s
e
t
a
R
e
g
n
a
h
c
x
E
e
g
a
r
e
v
A
)
b
.
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
r
i
u
q
c
A
2
.
r
a
e
y
e
h
t
g
n
i
r
u
d
d
e
t
a
d
u
q
i
i
l
3
n
o
i
t
a
d
u
q
i
i
l
r
e
d
n
U
1
I
-
C
O
A
M
R
O
F
)
s
e
r
o
r
c
n
i
`
(
b
u
r
a
g
r
e
G
g
n
i
i
n
M
d
n
a
n
o
i
t
a
r
o
l
p
x
E
i
h
a
n
P
h
s
o
R
e
r
a
C
h
t
l
a
e
H
l
a
k
y
a
R
m
u
i
i
n
m
u
A
l
&
s
e
n
M
i
l
a
o
C
a
i
p
m
a
R
e
m
i
t
i
r
a
M
a
o
G
l
a
o
C
h
t
u
o
S
r
u
p
n
a
d
a
M
)
y
r
a
t
e
i
r
p
o
r
P
(
y
n
a
p
m
o
C
e
t
a
v
i
r
P
y
g
r
e
n
E
d
e
t
i
i
m
L
e
t
a
v
i
r
P
y
n
a
p
m
o
C
d
e
t
i
i
m
L
)
y
t
P
(
d
e
t
i
m
L
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
)
a
(
d
e
t
i
m
L
i
d
e
t
i
m
L
i
d
e
t
i
i
m
L
e
t
a
v
i
r
P
.
d
t
L
v
a
r
u
a
G
s
a
e
s
r
e
v
O
r
o
k
S
h
s
o
R
)
y
t
P
(
p
i
h
s
n
w
o
T
s
e
r
u
t
n
e
V
t
n
i
o
J
/
s
e
t
a
i
c
o
s
s
A
f
o
e
m
a
N
.
r
S
.
o
N
l
4
1
0
2
,
s
e
u
R
)
s
t
n
u
o
c
c
A
(
l
i
s
e
n
a
p
m
o
C
f
o
5
e
u
r
h
t
i
w
d
a
e
r
9
2
1
n
o
i
t
c
e
S
f
o
)
3
(
n
o
i
t
c
e
s
-
b
u
s
o
t
o
s
i
i
v
o
r
p
t
s
r
fi
o
t
t
n
a
u
s
r
u
p
s
e
r
u
t
n
e
V
t
n
o
J
d
n
a
s
e
n
a
p
m
o
c
e
t
a
i
c
o
s
s
A
f
o
s
e
r
u
t
a
e
f
t
n
e
i
i
l
a
S
1
2
0
2
l
i
r
p
A
0
3
0
2
0
2
6
1
0
2
1
2
0
2
1
2
0
2
1
2
0
2
1
2
0
2
r
e
b
m
e
c
e
D
1
3
h
c
r
a
M
1
3
h
c
r
a
M
1
3
h
c
r
a
M
1
3
h
c
r
a
M
1
3
h
c
r
a
M
1
3
0
2
0
2
e
n
u
J
0
3
l
e
t
a
d
t
e
e
h
s
e
c
n
a
a
B
d
e
t
i
d
u
a
t
s
e
t
a
L
0
0
0
.
0
0
0
.
5
0
1
.
9
0
0
-
.
-
-
l
o
r
t
n
o
c
t
n
o
J
i
l
o
r
t
n
o
c
t
n
o
J
i
y
t
i
t
n
e
e
h
t
f
o
y
t
i
t
n
e
e
h
t
f
o
.
.
A
N
1
5
0
0
0
.
9
6
0
0
0
.
0
0
5
2
2
1
,
%
0
0
1
5
.
%
0
0
9
6
.
%
0
5
4
2
.
-
-
3
.
.
A
N
%
9
3
7
1
.
,
9
3
5
9
2
2
7
2
,
,
0
0
0
0
5
,
.
.
A
N
%
0
0
0
5
.
6
0
0
-
.
2
1
0
.
1
2
1
.
3
0
0
.
6
9
1
.
.
.
A
N
%
2
6
7
1
.
.
6
5
7
0
2
4
4
1
1
,
0
0
0
3
2
3
,
0
)
0
(
2
3
0
.
%
0
0
0
5
.
f
o
y
a
w
y
B
i
p
h
s
r
e
n
w
o
0
5
0
0
0
.
%
0
0
0
5
.
f
o
y
a
w
y
B
i
p
h
s
r
e
n
w
o
8
9
2
.
2
1
0
-
.
l
i
y
b
d
e
h
s
e
r
u
t
n
e
V
t
n
o
J
/
e
t
a
c
o
s
s
A
f
o
s
e
r
a
h
S
i
)
s
e
r
o
r
c
`
(
t
n
e
m
t
s
e
v
n
i
f
o
t
n
u
o
m
A
-
r
e
b
m
u
N
-
d
n
e
r
a
e
y
e
h
t
t
a
y
n
a
p
m
o
C
e
h
t
t
n
a
c
fi
n
g
s
s
i
i
i
e
r
e
h
t
w
o
h
f
o
n
o
i
t
p
i
r
c
s
e
D
e
c
n
e
u
fl
n
i
l
i
g
n
d
o
h
f
o
%
-
l
i
r
e
p
s
a
g
n
d
o
h
e
r
a
h
s
o
t
e
b
a
t
u
b
i
r
t
t
a
h
t
r
o
w
t
e
N
l
`
)
s
e
r
o
r
c
l
(
t
e
e
h
s
e
c
n
a
a
B
d
e
t
i
d
u
a
t
s
e
t
a
l
)
s
e
r
o
r
c
`
(
r
a
e
y
e
h
t
r
o
f
)
s
s
o
L
(
/
t
fi
o
r
P
.
1
2
0
2
l
i
r
p
A
9
1
n
o
s
r
i
a
ff
a
e
t
a
r
o
p
r
o
C
i
i
f
o
y
r
t
s
n
M
e
h
t
y
b
ff
o
k
c
u
r
t
S
1
2
3
4
5
)
a
(
r
e
c
ffi
O
e
c
n
a
i
l
p
m
o
C
d
n
a
y
r
a
t
e
r
c
e
S
y
n
a
p
m
o
C
l
a
y
i
s
a
w
a
H
a
n
r
e
r
P
i
r
e
c
ffi
O
e
v
i
t
u
c
e
x
E
f
e
h
C
d
n
a
r
o
t
c
e
r
i
D
e
m
T
-
e
o
h
W
i
l
l
a
g
g
u
D
l
i
n
u
S
6
5
8
0
2
A
.
i
o
N
p
h
s
r
e
b
m
e
M
I
S
C
I
5
8
6
1
9
2
7
0
N
D
I
s
r
o
t
c
e
r
i
D
f
o
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
i
r
o
t
c
e
r
i
D
e
m
T
-
e
o
h
W
d
n
a
n
a
m
l
i
r
i
a
h
C
-
e
c
V
e
v
i
t
u
c
e
x
E
3
0
3
6
0
0
0
0
N
D
I
l
a
w
r
a
g
A
n
v
a
N
i
1
2
0
2
y
a
M
3
1
:
e
t
a
D
i
l
h
e
D
w
e
N
:
e
c
a
P
l
499
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
0
0
1
3
6
1
5
.
3
6
1
5
.
3
6
1
5
.
0
0
1
0
0
1
0
0
1
0
0
0
.
)
0
(
0
0
0
.
)
3
3
2
(
0
0
0
.
)
2
2
(
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
0
0
0
.
8
1
9
6
-
2
1
)
0
(
)
2
(
0
6
4
)
9
3
1
(
)
2
0
1
(
)
9
8
7
(
0
0
0
.
-
0
0
0
.
)
3
1
1
(
-
-
-
-
-
-
5
-
-
-
)
4
(
-
-
6
3
-
-
)
0
(
)
3
3
2
(
)
2
2
(
8
1
9
6
-
7
1
)
0
(
)
2
(
0
2
4
)
9
3
1
(
)
2
0
1
(
)
3
5
7
(
-
-
-
8
5
5
4
1
-
2
4
-
-
-
-
0
8
5
2
2
3
0
5
-
-
)
3
1
1
(
)
2
2
1
(
-
-
-
-
-
-
8
1
-
-
-
-
-
-
-
-
0
0
0
.
7
7
2
4
2
3
6
1
8
7
7
,
2
9
8
4
1
1
9
9
7
2
1
7
2
)
1
9
8
(
)
0
9
1
4
2
(
,
1
1
4
6
1
,
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
i
i
m
L
n
a
t
n
u
o
F
m
o
o
B
l
)
2
(
0
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
h
t
r
e
B
o
g
r
a
C
i
t
l
u
M
p
d
a
r
a
P
i
7
3
E
E
P
U
R
d
e
t
i
i
m
L
e
t
a
v
i
r
P
-
1
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
l
i
m
L
r
e
t
s
u
C
n
r
e
t
s
e
W
r
a
l
l
o
D
E
E
P
U
R
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
d
e
t
i
i
m
L
s
e
c
r
u
o
s
e
R
a
s
e
S
2
1
3
7
4
1
)
6
7
1
(
2
1
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
n
o
i
t
a
r
o
p
r
o
C
g
n
n
M
a
s
e
S
i
i
E
E
P
U
R
d
e
t
i
m
L
i
-
9
0
3
-
9
2
0
-
-
0
2
)
0
(
)
3
(
7
4
-
-
-
5
9
0
5
,
3
1
4
2
,
7
5
5
3
8
2
0
0
0
3
,
)
1
0
1
2
(
,
9
7
4
)
2
8
7
2
(
,
1
6
6
3
4
3
2
0
4
3
,
9
9
4
2
,
0
0
0
0
0
7
8
4
8
6
4
3
4
3
-
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
r
a
l
l
o
D
l
n
o
i
t
a
r
o
p
x
E
a
t
n
a
d
e
V
1
d
e
t
i
i
m
L
d
n
a
e
r
I
l
r
a
l
l
o
D
s
e
t
a
t
S
d
e
t
i
n
U
-
D
S
U
h
c
r
a
M
o
t
l
i
r
p
A
V
B
o
k
s
a
m
o
k
a
L
4
4
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
e
t
a
v
i
r
P
s
e
r
u
t
n
e
V
e
m
i
t
i
r
a
M
3
4
E
E
P
U
R
d
e
t
i
m
L
i
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
e
t
a
v
i
r
P
t
r
o
P
a
e
S
a
o
G
5
4
E
E
P
U
R
d
e
t
i
m
L
i
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
S
O
S
E
d
e
t
i
i
m
L
a
t
n
a
d
e
V
6
4
E
E
P
U
R
t
s
u
r
T
n
e
Y
e
s
e
n
a
p
a
J
-
Y
P
J
h
c
r
a
M
o
t
l
i
r
p
A
c
n
I
e
t
a
r
t
S
n
a
v
A
n
e
Y
e
s
e
n
a
p
a
J
-
Y
P
J
h
c
r
a
M
o
t
l
i
r
p
A
c
n
I
a
e
r
o
K
e
t
a
r
t
S
n
a
v
A
n
e
Y
e
s
e
n
a
p
a
J
-
Y
P
J
h
c
r
a
M
o
t
l
i
r
p
A
c
n
I
i
n
a
w
a
T
e
t
a
r
t
S
n
a
v
A
E
E
P
U
R
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
E
E
P
U
R
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
n
o
i
t
a
r
o
p
r
o
C
y
o
l
l
A
o
r
r
e
F
)
2
R
O
C
A
F
(
d
e
t
i
m
L
i
2
d
e
t
i
i
m
L
e
r
u
t
c
u
r
t
s
a
r
f
n
I
d
n
a
y
t
l
a
e
R
r
o
c
a
F
1
5
6
8
2
1
,
2
3
6
)
5
9
8
(
1
4
2
I
N
A
D
N
I
-
R
N
I
h
c
r
a
M
o
t
l
i
r
p
A
.
2
d
t
L
r
e
w
o
p
R
O
C
A
F
2
5
E
E
P
U
R
8
3
9
3
0
4
1
4
2
4
7
4
8
4
9
4
0
5
)
s
e
r
o
r
c
n
i
`
(
f
o
%
g
n
i
d
l
o
h
e
r
a
h
s
d
e
s
o
p
o
r
P
-
d
n
e
d
i
i
v
D
d
e
s
o
p
o
r
P
l
a
n
i
F
d
n
e
d
i
i
v
D
n
o
i
t
a
x
a
T
)
t
i
d
e
r
c
(
n
o
i
t
a
x
a
T
)
y
r
a
i
d
i
s
b
u
S
/
t
fi
o
r
P
n
o
i
s
i
v
o
r
P
/
t
fi
o
r
P
)
s
s
o
L
(
r
e
t
f
A
r
o
f
)
s
s
o
L
(
/
n
o
i
t
a
x
a
T
e
r
o
f
e
B
s
t
n
e
m
t
s
e
v
n
I
r
e
v
o
n
r
u
T
g
n
i
d
u
l
c
x
e
(
l
a
t
o
T
l
a
t
o
T
s
e
v
r
e
s
e
R
e
r
a
h
S
n
i
t
n
e
m
t
s
e
v
n
I
s
e
i
t
i
l
i
b
a
i
L
s
t
e
s
s
A
s
u
l
p
r
u
S
&
l
a
t
i
p
a
C
y
c
n
e
r
r
u
c
g
n
i
t
r
o
p
e
R
g
n
i
t
r
o
p
e
R
d
o
i
r
e
P
y
r
a
i
d
i
s
b
u
S
e
h
t
f
o
e
m
a
N
.
I
S
.
o
N
l
4
1
0
2
,
s
e
u
R
)
s
t
n
u
o
c
c
A
l
i
(
s
e
n
a
p
m
o
C
f
o
5
e
u
r
h
t
i
w
d
a
e
r
9
2
1
n
o
i
t
c
e
S
f
o
)
3
(
n
o
i
t
c
e
s
-
b
u
s
o
t
o
s
i
v
o
r
p
t
s
r
fi
o
t
t
n
a
u
s
r
u
p
s
e
i
r
a
i
d
i
s
b
u
S
f
o
s
e
r
u
t
a
e
f
t
n
e
i
l
a
S
I
-
C
O
A
M
R
O
F
498
Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021Notes forming part of the consolidated financial statements as at and for the year ended 31 March 2021CONSOLIDATED CONTINUED...VEDANTA LIMITED | INTEGRATED REPORT AND ANNUAL ACCOUNTS 2020-21 | Financial statements
Notes
VEDANTA LIMITED
1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects,
Chakala, Andheri (E), Mumbai - 400 093, Maharashtra
CIN: L13209MH1065PLC291394 | www. vedantalimited.com
Continue reading text version or see original annual report in PDF
format above