1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (E), Mumbai - 400 093, Maharashtra CIN: L13209MH1065PLC291394 | www.vedantalimited.com TRANSFORMING TOGETHER INCLUSIVE. RESPONSIBLE. VALUE-ACCRETIVE DELIVERY. Vedanta Limited Integrated Report and Annual Accounts 2022-23 TRANSFORMING TOGETHER INCLUSIVE. RESPONSIBLE. VALUE-ACCRETIVE DELIVERY. At Vedanta, we are inspired to consolidate our market-leading position as a natural resource powerhouse and scale new peaks of excellence in productivity, innovation and digitalisation. We intend to accomplish these goals through inclusive practices and responsible actions that create lasting value for our stakeholders and contribute to the nation’s growth. Our quest for excellence drives us to advance our transformation journey, from ‘Transforming for Good’ to ‘Transforming Together’. This transition encompasses smarter choices and collective actions on a foundation of shared values and inclusive development. Our future hinges upon it. Driven by a deep sense of responsibility towards our people and communities while harnessing the wealth of natural capital, we are progressing toward ambitious goals in environmental stewardship, social equity and impact besides people excellence and good governance. We are simultaneously building new state-of-the-art capacities to drive value addition. By investing in world-class digital and operational practices, we are poised to chart new growth paths and explore bigger opportunities. Through our quest for ‘Transforming Together’, we are confident of securing sustainable and responsible growth to progress to a value-accretive future. ABOUT THE REPORT At Vedanta, we have always been inspired to make disclosures that go beyond statutory requirements to enable our stakeholders and providers of financial capital to take the right decision. In line with this, we have followed the content elements and guiding principles of the International Integrated ReportingFramework, outlined by the International Integrated Reporting Council (IIRC), now the Value Reporting Foundation (VRF). We commenced our Integrated Reporting journey in FY 2018, with a view to communicating our approach to value creation and key outcomes to our stakeholders. The integrated 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. At Vedanta, we remain committed to providing relevant disclosures pertaining to our material issues, with the highest standards of transparency and integrity, in line with our values. Scope and boundary The Integrated Report and Annual Accounts 2022-23 covers the reporting period from 01 April 2022 to 31 March 2023, and provides holistic 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 and gas, aluminium, power, iron ore, steel, nickel and copper. Our assets are spread through 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, value-creation model, business outputs and outcomes using an interlinked, 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 stakeholder engagement and materiality Our stakeholders include those individuals and organisations who have an interest in, and/or whose actions impact our ability to execute business strategy. We periodically engage with different stakeholder groups and actively respond to their concerns and issues. This report contains information that we believe is of interest to our stakeholders and presents a discussion on matters that can impact our ability to create value over the short, medium and long term. Annual accounts This report should be read in conjunction with the annual accounts (pages 325 to 572) to gain a complete picture of VEDL’s financial performance. The consolidated and standalone financial statements in this 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 pages 445 and 326 respectively. Forward-looking statements This report contains ‘forward-looking statements’ – that is, statements about business expectations and forecasts that are based on future, not past events. In this context, forward-looking statements address our expected future business and financial performance, and often contain words such as ‘expects’, ‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’, or ‘will’. Forward-looking statements by their nature address matters that are, in different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and/or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of environmental, climatic, natural, political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward- looking statements. We do not undertake to update our forward-looking statements. These forward-looking statements involve risk and uncertainties, and although we believe that the assumption on which our forward- looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statement based on those assumptions could be materially incorrect. 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 12 May 2023. CONTENTS INTEGRATED THINKING AT VEDANTA INTEGRATED ThINkING AT VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 30 ESL improves blast furnace performance with process digital twin 34 Sterlite Copper advances low-carbon journey with green copper 36 Turning around lead smelter at DSC Integrated Report 01 02 Integrated Thinking at Vedanta Value-Creation Highlights FY 2023 Introducing Vedanta 06 Vedanta at a glance 10 Presence 12 Asset Overview 16 Our Investment Case Performance Review 22 Message from the Chairman 26 Message from the CEO & MD 30 Case Studies 38 Key Performance Indicators 42 Value-Creation Model 44 Opportunities 48 Strategic Priorities and Update 56 Risk Management 66 Cybersecurity Our Board and Management 68 Board of Directors 72 Executive Committee VEDL reporting suite Stakeholder Engagement and Materiality Assessment 78 Stakeholder Engagement 80 Materiality Sustainability Review 82 Operationalising ESG within Vedanta 102 People and Culture 106 Corporate Governance 110 Awards Management Discussion and Analysis 112 Market Review 118 Segment Review 126 Finance Review 132 Operational Review Statutory Reports 172 Directors’ Report 234 Report on Corporate Governance 291 Business Responsibility and Sustainability Report Financial Statements 325 Standalone Financials 444 Consolidated Financials 577 Abbreviations Vedanta Limited Sustainability Report (SR) 2021-22 Information coverage: Disclosures on triple bottom line performance Standards/guidelines used: Global Reporting Initiative (GRI) Standards Vedanta Limited Tax Transparency Report (TTR) 2021-22 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 2021-22 Information coverage: Holistic disclosure of performance and strategy Standards/guidelines used: International Integrated Reporting Framework, Indian Accounting Standards (Ind AS), Indian Secretarial Standards Vedanta Limited TCFD Report 2022 Information coverage: Climate-related financial disclosures Standards/guidelines used: Approach to climate action, climate strategy and climate risk management Vedanta adopts a comprehensive value creation process that considers all resources and relationships, material issues and strategic focus areas, in the backdrop of our mission and values. Our ESG purpose ‘Transforming for Good’, supplemented by a more comprehensive ‘Transforming Together’ theme is deeply embedded into this process. This community value empowers our decision-making to drive business success, alongside contributing to the nation’s growth, a sustainable world and shared value creation for all stakeholders. 1. We are led by Mission To create a leading global natural resource Company Values Trust Integrity Entrepreneurship Care Innovation Respect Excellence 2. Building on Capitals Pg. 2 Financial capital Manufactured capital Intellectual capital Human capital Social and relationship capital Natural capital 3. Focussing on Material issues Pg. 80 M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 4. Enabled by Strategic focus areas Pg. 48 Continue to focus on world-class ESG performance Augment our reserves and resource base 5. With a consistent eye on Operational excellence Optimise capital allocation and maintain strong balance sheet Deliver on growth opportunities Top risks Pg. 56 Megatrends and opportunities Pg. 44 R1 R8 R2 R3 R4 R5 R6 R7 T1 T2 T3 T4 T5 T6 T7 R9 R10 R11 R12 R13 6. Creating consistent value for Pg. 78 Shareholders, investors and lenders Local communities Employees Industry Governments Civil societies 1 INTEGRATED ThINkING AT VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS VALUE-CREATION HIGHLIGHTS FY 2023 FINANCIAL CAPITAL MANUFACTURED CAPITAL We are focussed 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 maximise returns for shareholders. We invest in best-in-class equipment and machinery to ensure operational efficiency and safety, at both our current operations and expansion projects. This also supports our strong and sustainable cash flow generation. Pg. 126 Key FY 2023 outcomes Revenue `1,45,404 crore 11% YoY EBITDA `35,241 crore 22% YoY Net Debt/EBITDA 1.3X EBITDA margin1 28% ROCE ~21% Historic dividend `101.5 per share PAT (before exceptional and one-time gain) Free cash flow (FCF) post-capex `14,449 crore 41% YoY `18,077 crore Cash and cash equivalents Net debt `20,922 crore `45,260 crore Pg. 132 Key FY 2023 outcomes Business highlights Zinc India 16.74 million tonnes Record ore production Zinc International 208 kt Record mined metal production at Gamsberg 22% YoY Power 14,835 million units Record overall power sales 25% YoY Steel 1.37 million tonnes Highest ever hot metal production 1% YoY FACOR 290 kt 714 tonnes Ever-highest silver production 10% YoY Aluminium 2,291 kt Highest ever aluminium production 696 kt Pig Iron production Copper India 148 kt Cathode production from the Silvassa 18% YoY 1,032 kt Highest ever refined zinc-lead production 7% YoY Oil & Gas 143 kboepd Average gross operated production 11% YoY Iron Ore 5.3 million tonnes Production of saleable ore at Karnataka 1.29 million tonnes Record saleable production 2% YoY 67 kt Note 1: Excluding custom smelting at copper business 2 Record chrome ore production Ferro chrome production 16% YoY 11% YoY 3 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED ThINkING AT VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS HUMAN CAPITAL NATURAL CAPITAL We promote diversity, equality and inclusivity, while also investing in people development, safety and well-being. We empower them to think independently, creatively and innovatively. It has enabled us to create a workplace where a diversity of individuals with diverse skills, experience and unique capabilities can thrive and contribute to business goals, reinforcing our position as a leading natural resources company. India and Africa provide us with world-class mining assets and abundant natural resources and reserves, driving our competitiveness. However, while using these resources to create social and economic value, our operations also have accompanying environmental impacts. We strive to operate responsibly through sustainable use of resources and investing in various environmental goals. Pg. 102 Key FY 2023 outcomes 87,500+ Total Workforce 14.0%¹ Women employees 8.9%² Attrition rate 1.2%³ TRIFR 2,199 Employees covered under mentoring and support programs SOCIAL AND RELATIONSHIP CAPITAL We are committed to nurturing lasting and enduring relationships with our stakeholders, built on trust and concern for their individual and collective well-being through meaningful engagements. These bonds are instrumental in maintaining our reputation, upholding our licence to operate, and enabling us to deliver on our strategy. Pg. 88 Key FY 2023 outcomes 4,500+ Nand Ghars built 44 million⁴ Total CSR beneficiaries `454 crore Total CSR spend Human Rights self-assessment conducted across all BUs Note 1&2: Based on Full Time Employee (FTE) Note 3: Based on total workforce Note 4: Includes both direct and indirect beneficiaries 4 Pg. 92 Key FY 2023 outcomes Zinc India R&R 460 million tonnes Combined R&R 30.8 million tonnes Zinc-Lead metal R&R 856 million ounces Silver R&R Zinc International R&R 659.1 million tonnes Combined R&R 34.9 million tonnes Metal R&R Oil and Gas R&R 1,156 mmboe Gross proved, and probable reserves and resources GHG Intensity 6.24 tCO2e per tonne of metal Water Positivity Ratio 0.62x HVLT waste recycled Biomass Usage ~78,000 tonnes 162% Trees Planted 1 million As part of the commitment to plant 7 million trees by 2030 5 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 VEDANTA AT A GLANCE INDIA’S LARGEST NATURAL RESOURCES COMPANY, POWERING SUSTAINABLE AND RESPONSIBLE PROGRESS Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world’s foremost natural resources conglomerates, with primary operations in zinc-lead-silver, iron ore, steel, copper, aluminium, power, nickel, and oil and gas. As market leaders in most of these segments, we serve domestic and international demand for primary materials, thereby playing a key role that enables resource sufficiency at scale. With strategic assets in India, South Africa and Namibia, we are committed to creating long-term value, with an uncompromised focus on business, social and environmental sustainability. VEDANTA AT A GLANCE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Our core values shape our approach to business and value creation Trust Entrepreneurship Innovation Excellence Integrity Care Respect 87,500+ Total Workforce 4+ million tCO2e in avoided emissions from FY 2021 baseline R&R 460 million tonnes Zinc India 659 million tonnes Zinc International 1,156 mmboe Oil and Gas 6 7 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Our value chain Value addition We meet market requirements by converting the primary metals produced at our facilities into value-added products such as sheets, rods, bars, rolled products, etc. at our zinc, aluminium and copper businesses. 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. As a best practice measure, we also generate captive power and sell any surplus power. Exploration We have consistently added to our Reserves and Resources (‘R&R’) through brownfield and greenfield activities that have helped us to extend the lives of our existing mines and oilfields. Asset development We have a remarkable track record of project execution on time and within budget. We undertake special measures to develop the resource base to optimise production and increase the life of the resource. We have also developed strategic processing facilities. Extraction Our operations are focussed on the exploration and production of metals, oil and gas extraction besides power generation. We extract zinc- lead-silver, iron ore, steel, copper and aluminium. We have three operating blocks in India producing oil and gas. VEDANTA AT A GLANCE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ESG PURPOSE AND MISSION TRANSFORMING FOR GOOD Commitments and targets Pillars Transforming communities Aim 1 Aim 2 Aim 3 Keep community welfare at the core of business decisions Empowering over 2.5 million families with enhanced skillsets Uplifting over 100 million women and children through Education, Nutrition, Healthcare and Welfare Transforming the planet Aim 4 Aim 5 Aim 6 Net-carbon neutrality by 2050 or sooner Achieving net water positivity by 2030 Innovating for a greener business model Transforming the workplace Aim 7 Aim 8 Aim 9 Prioritising safety and health of all employees Promote gender parity, diversity and inclusivity Adhere to global business standards of corporate governance Operating structure Our diversified structure and wide geographic presence enable efficient operations and serviceability As of 31 March 2023 Listed entities Unlisted entities 68.1% Vedanta Resources Limited Vedanta Limited Divisions of Vedanta Ltd. • Sesa Goa • Sterlite Copper • Power (600 MW Jharsuguda) • Aluminium • Cairn Oil & Gas** • Iron Ore Goa • Iron Ore Karnataka • Value-Added Business • Jharsuguda • Lanjigarh Subsidiaries of Vedanta Ltd. 64.92% Zinc India (HZL) 51% Bharat Aluminium (BALCO) 100% 100% Zinc International* Talwandi Sabo Power (1,980 MW) 95.5% ESL Steel Limited 99.99% Ferro Alloy Corporation Ltd. (FACOR) Advanced technologies and digitalisation are used across the value chain resulting in superior operational efficiencies *Skorpion -100% BMM & Gamsberg – 74% **50% of the share in the RJ Block is held by a subsidiary of Vedanta Limited 8 9 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 PRESENCE WORLD-CLASS DIVERSIFIED NATURAL RESOURCES POWERHOUSE PRESENCE India INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Global Ireland Lisheen Mine Liberia Iron Ore Project Western Cluster Namibia Scorpion Mine South Africa Black Mountain Mine Gamsberg UAE Fujairah Gold East Asia Glass India Multiple Australia Mt. Lyell Mine 6 26 16 12 13 10 14 11 22 18 1 8 23 5 19 24 4 3 20 25 15 9 17 21 7 2 COPPER ALUMINIUM POWER IRON ORE ZINC OIL & GAS CAPTIVE POWER PLANT GLASS MULTIPLE STEEL MET COKE FERRO ALLOYS CEMENT NICKEL PORT Note: Maps not to scale; Lisheen Mine had safe, detailed and fully costed closured after 17 years of operation in Nov’2015 and Mt. Lyell Mine is under care and maintenance 1 Silvassa 2 Tuticorin 3 Lanjigarh 4 Jharsuguda 5 Korba Copper Copper, Captive Power Plant Aluminium (VAL) & Captive Power Plant Aluminium (VAL), Commercial Power (SEL), Captive Power Plant & Projects under development Aluminium, Captive Power Plant & Projects under development 6 Talwandi Sabo Power (TSPL) 7 Salem 8 Goa 9 Karnataka 10 Debari Power (MALCO) Iron Ore (Sesa Goa) | Nickel (Sesa Nickel) | Cement (Sesa Cement) | Pig Iron Iron Ore (Sesa Goa Operations) Zinc-Lead-Silver 11 Chanderiya Dariba Zinc-Lead-Silver 12 Rampura Agucha Zinc-Lead-Silver 13 Rajpura Dariba Mine & Zinc-Lead-Silver Smelter And Sindeswar Khurd Mine & Captive Power Plant 14 Zawar Mine 15 Vizag 16 Rajasthan 17 Ravva 18 Cambay 19 Bokaro 20 Bhadrak Zinc-Lead-Silver & Captive Power Plant Zinc-Lead-Silver Oil & Gas Oil & Gas Oil & Gas Steel Ferro Alloys, Chrome ore mines 21 KG Onshore & Offshore Oil & Gas 22 Gujarat 23 Vazare 24 Barbil 25 Vizag 26 Haridwar Met Coke Met Coke Iron Ore Odisha Port (VGCB) Zinc-Lead-Silver 10 11 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ASSET OVERVIEW LEADER IN KEY BUSINESS SEGMENTS ASSET OVERVIEW INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ZINC-LEAD-SILVER 77% market share in India’s primary zinc market (Hindustan Zinc Limited) ALUMINIUM Largest primary aluminium producer in India OIL & GAS Operates ~25% of India’s crude oil production POWER 9 GW power portfolio Business Business Zinc India (HZL), Zinc International Asset Highlights Aluminium smelters at Jharsuguda & Korba (BALCO) • World’s largest underground zinc-lead mine at Alumina refinery at Lanjigarh Rampura Agucha, India • 5th largest silver producer in the world • Zinc India has an R&R of 460 million tonnes with a mine life of 25+ years • Zinc International has an R&R of more than 659 million tonnes supporting mine life in excess of 20 years • HZL - Low-cost zinc producer, which lies in the first quartile of the global zinc cost curve (2022) Application Areas • Galvanising for infrastructure and construction sectors • Die-casting alloys, brass, oxides and chemicals Asset Highlights • Largest aluminium installed capacity in India at 2.3 MTPA • Integrated 5.7 GW Power & 2 MTPA Alumina refinery • 41% market share in India among primary aluminium producers • Diverse product portfolio – ingots, wire rods, primary foundry alloy, rolled products, billet and slab Application Areas • Power systems, automotive sector, aerospace, building and construction, packaging EBITDA `17,474 crore (Zinc India) Production Volume Zinc India `1,934 crore (Zinc International) Zinc International 821 kt Zinc 211 kt Lead 714 kt Silver 273 kt MIC EBITDA `5,837 crore Production Volume 2,291 kt Aluminium 1,793 kt Alumina Business Cairn India Asset Highlights • Signed 10-year extension up to 2030 for the Rajasthan block Production Sharing Contract (PSC) • OLAP & DSF - Secured 8 blocks in Discovered Small Fields (DSF)-III bid round and one block in special Coal Bed Methane (CBM) bid round 2021 • World’s longest continuously heated pipeline from Barmer to Gujarat Coast (~670 kms) • Till FY 2023, 294 wells have been drilled and 201 wells Business Power assets at Talwandi Sabo, Jharsuguda, Korba & Lanjigarh Asset Highlights • One of the largest power producers in India’s private sector* • Energy efficient, super critical 1,980 MW power plant at Talwandi Sabo Application Areas hooked up across all assets • Commercial power backed by power • Awarded key contracts for end-to-end management of Operations and Maintenance (O&M) across assets • Largest private sector oil and gas producer in India • Executed one of the largest polymer EOR projects in the world • Footprint over a total acreage of 65,000 square kilometres • Gross 2P reserves and 2C resources of 1,156 mmboe Application Areas • Crude oil is used by hydrocarbon refineries • Natural gas is mainly used by the fertiliser sector EBITDA `7,782 crore purchase agreements • Captive use *Including captive power generation EBITDA `851 crore Average daily gross operated production 143 kboepd Power sales 14,835 million units 12 13 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ASSET OVERVIEW INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS IRON ORE One of the largest merchant iron ore miners in India and one of the largest producers and exporters of merchant pig iron in India STEEL 3 MTPA design capacity1 FACOR 80 KTPA charge chrome/ferro chrome capacity with 100 MW power plant; 290 KTPA chrome ore mining capacity COPPER One of the largest copper production capacity in India Business Iron Ore India Asset Highlights Business Electrosteel India Asset Highlights Business Ferro Alloys Corporation Ltd Asset Highlights Business Copper India Asset Highlights • Karnataka iron ore mine with reserves of 53.57 million • Design capacity of 3 MTPA • Ostapal and Kalarangiatta Mines have 290 KTPA • Tuticorin smelter and refinery are currently tonnes, and life of 9 years • Value-added business: 3 blast furnaces (0.9 MTPA), 2 coke oven batteries (0.5 MTPA) and 2 power plants (65 MW) and one merchant coke plant of capacity 0.1 MTPA Application Areas • Essential for steel making • Used in construction, infrastructure and automotive sectors • Largely long steel products • Highest-ever hot metal production of 1,368 kt • Highest ever DIP production of 196 kt Application Areas • Construction, infrastructure, transport, energy, packaging, appliances and industry • Product portfolio includes pig iron, billets, TMT bars, wire rods and ductile iron pipes EBITDA `988 crore Production Volume 5.3 million tonnes Iron ore 696 kt Pig iron EBITDA `316 crore Production Volume 1,285 kt Steel Note: 1. Hot metal design capacity mining capacity not operational • Charge chrome plant of 80 KTPA and captive power • Tuticorin Smelter Capacity: 400 KTPA plant of 100 MW Application Areas • Silvassa Refinery Capacity: 216 KTPA Application Areas • Used for making stainless steel, carbon steel, ball-bearing steels, tool steels and other alloy steels • Used for making cables, transformers, castings, motors and alloy-based products EBITDA `149 crore Production Volume 67 kt Ferro chrome EBITDA `(4) crore Production Volume 148 kt Cathode 14 15 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OUR INVESTMENT CASE CAPITALISING ON INHERENT ADVANTAGES TO DELIVER LONG-TERM VALUE India’s natural resources industry is expected to contribute substantially to the country’s economy and have a significant impact on the international commodity markets. As India’s largest and most diversified natural resources company, we are well- positioned to play a major role in supporting India’s economic growth. We are making the right investments for exponential growth. We have partnered with the government to promote inclusive development, raise environmental standards and build public support for the critical minerals and mining sector. OUR INVESTMENT CASE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Robust financial profile with strong ROCE and cash flow and a stronger balance sheet Disciplined capital allocation framework with emphasis on superior and consistent shareholder returns Committed to ESG leadership in the natural resources sector Uniquely positioned to deliver sustainable value World-class natural resources powerhouse with low cost, long-life and diversified asset base Well-placed to contribute to and capitalise on India’s growth with an attractive commodity mix Focussed on digitalisation and innovation to drive efficiency and resilience Proven track record of operational excellence with high productivity and consistent utilisation rates World-class natural resources powerhouse with low cost, long-life and diversified asset base Vedanta’s large, diversified asset portfolio, with an attractive cost position in many of its core businesses, enables us to deliver strong margins and free cash flows through the commodity cycle. We have an attractive commodity mix, with strong fundamentals and leading demand growth with a keen focus on base metals and oil. Our cost positioning globally, across key segments, is driven by our resolute focus on structural cost reduction and operational efficiencies. Vedanta continued its strong growth momentum and witnessed steady volume performance across all businesses, with aluminium and zinc delivering record performance. Demand 2022-2030 CAGR (%) . 0 9 6 2 . 4 4 . 4 1 . . 1 4 . 0 2 . 6 5 7 4 . . 9 5 6 1 . . 5 4 ) 5 0 ( . . 2 4 0 1 . 7 1 . ) 4 1 ( . Copper Lead Aluminium Zinc Iron Ore Nickel Oil1 Thermal Coal India Global Source: Wood Mackenzie 1. OPEC World Oil Outlook 2022 16 17 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Well-placed to contribute to and capitalise on India’s growth with an attractive commodity mix India is our core market, with huge growth potential, given that the current per capita metal consumption is significantly lower than the global average. Also, India’s GDP, which registered a growth of 6.8% over the course of 2022, is expected to grow by 5.9% in FY 2024 (IMF; April 2023 estimate). Urbanisation and industrialisation, supported by government initiatives on infrastructure and housing, a strong response to COVID-19 and an increase in capital outlay announced in the Union Budget 2023-24 will continue to drive strong economic growth and generate demand for natural resources. Vedanta’s unique advantages: • Operating a wide and scalable portfolio of commodities that grow the nation • 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 executing projects and achieving growth Aluminium consumption (kg/capita) Copper consumption (kg/capita) Zinc consumption (kg/capita) Oil consumption (boe/capita) . 8 7 2 . 7 0 1 7 4 . 6 4 . 9 3 . 7 8 . . 7 1 0 4 . 9 0 . 7 1 . 5 0 . 3 1 . India Global China India Global China India Global China India Global China Source: Wood Mackenzie, IHS Markit, OPEC World Oil Outlook 2022 Note: All commodities' demand correspond to primary demand; figures are for 2022 India mineral reserves ranking globally 7th Zinc Reserves: 9.1 million tonnes Crude Oil Reserves: 3.7 billion barrel 7th Iron Ore Reserves: 5.5 billion tonnes 8th Bauxite Reserves: 660 million tonnes OUR INVESTMENT CASE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS India Growth Potential GDP (Nominal at US$PPP) (US$ trillion) Per capita income (Nominal at US$PPP) (US$) . 6 5 2 . 3 3 1 8.6% CAGR 2 1 9 6 1 , 5 6 3 9 , 7.7% CAGR 2022 2030 2022 2030 Population (billion) . 4 1 5 1 . Urbanisation (%) 0 4 6 3 0.8% CAGR 1.4% CAGR 2022 2030 2022 2030 Source: IHS Markit Employees at Lanjigarh Refinery Proven track record of operational excellence with high productivity and consistent utilisation rates • Our management team has diverse and extensive sectoral and global experience. Drawing from this deep insight, the team ensures that operations are run efficiently and responsibly • Disciplined approach to development; achieving steady production growth across operations with a focus on efficiency and cost savings • Since our listing in 2004, our assets have delivered a phenomenal production growth Total Production Copper Equivalent (kt) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 i o n t P r o d u c 6 - 8 % ~ 1 3 % C A G R * I n d i a ’ s G D P o f 1 0 x o r G r o w t h a g a i n s t FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Zinc-Lead Silver Copper Aluminium Steel Power Iron Ore Oil & Gas Employee On-site 18 Source: USGS Mineral Commodity Summaries 2022, OPEC Annual Statistical Bulletin 2022 * All commodity and power capacities rebased to copper equivalent capacity (defined as production x commodity price/copper price) using average commodity prices for FY 2023. Power rebased using FY 2023 realisations, Copper custom smelting production rebased at TC/RC for FY 2023, Iron ore volumes refer to sales with prices rebased at realised prices for FY 2023 19 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OUR INVESTMENT CASE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Focussed on digitalisation and innovation to drive efficiency and resilience Robust financial profile with strong ROCE and cash flow and a stronger balance sheet To optimise efficiency and ensure future-readiness in our operations, we are actively investing in Industry 4.0 technologies, and mainstreaming a digital- first culture throughout the organisation. This has helped to achieve a 100% digitally literate workforce, a consistent eye on tech-led innovation, strong collaboration with start-ups and partners and a continued unlocking of efficiency potential across our integrated value chain. Project Pratham, aimed at significantly improving volume, cost and ease of doing business, has been a key step in this direction. Being implemented in partnership with global entities, it involves introducing emerging technologies throughout the Vedanta Industry 4.0 framework. The primary objectives of this project include EBITDA improvement, making gains on intangibles and reducing overall carbon footprint. Additionally, we are collaborating with technology start-ups, through the Spark programme, to leverage the power of cutting-edge technology for bringing large-scale impact. Leveraging digital technology Disciplined capital allocation framework with emphasis on superior and consistent shareholder returns We have unveiled a structured capital allocation policy that prioritises growth and shareholder returns. The policy aligns three streams across capital expenditure, dividend policy and selective inorganic growth. It will be driven by a consistent, disciplined, and balanced allocation of capital with long-term balance sheet management, optimal leverage management and maximisation of total shareholder returns. Mergers & Acquisition Dividend Capital Allocation Capital Expenditure Our operating performance, coupled with the optimisation of capital allocation, has helped strengthen our financials: Return on Capital Employed (%) • Revenues of `1,45,404 crore and EBITDA of `35,241 crore • Strong ROCE of ~21% • Deleveraging and extension of our debt maturities through proactive liability management exercises • Strong and robust FCF (Post Capex) of `18,077 crore • Cash and liquid investments of `20,922 crore • A strong balance sheet, with respect to Net Debt/ EBITDA and gearing, compared with our global diversified peers • `37,730 crore of declared dividend in FY 2023 0 3 9 1 1 2 FY 2021 FY 2022 FY 2023 Committed to ESG leadership in the natural resources sector • Being sustainable and the lowest cost producer in a sustainable manner • Incorporated global best practices to transform communities, planet and workplace in alignment with our Group’s objective of ‘zero harm, zero waste and zero discharge’ • Positively impacting the lives of 100 million women and children through upskilling and education, nutrition and healthcare initiatives • Improving transparency and completeness of disclosures in alignment with international best practices like GRI, TCFD etc. • Implemented critical risk management across the business to improve workplace safety • Promoting diversity at the workplace to build an inclusive work culture • Attaining net zero carbon by 2050 and reducing absolute emissions by 25% by 2030 from the 2021 baseline. Levers being used for achieving this goal include 2.5 GW Round the Clock Renewable Energy (RE RTC) by 2030, promoting operational efficiency, changing fuel mix, decarbonisation of 100% of our Light Motor Vehicle (LMV) fleet by 2030 and 75% of our mining fleet by 2035, exploring greener business opportunities and development of a low carbon product portfolio • Achieving water efficiency and net water positivity by 2030 • Retaining community welfare at the core of decision- making by implementing global best practices Plantation drive at VZI 20 21 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MESSAGE FROM THE CHAIRMAN PURPOSEFUL PATH TO A PROSPEROUS FUTURE We are pleased to have meaningfully addressed the needs of our stakeholders and communities while assuming a leadership position in tackling environmental issues. Our ESG strategy, ‘Transforming for Good’ has been instrumental in achieving this objective. We are now evolving this further with a more comprehensive approach of ‘Transforming Together’, to create a greater positive impact on our stakeholders and society at large. We are excited about the future and are progressing with greater energy and enthusiasm to create value for all. Dear Stakeholders, I am happy to take this opportunity to share my thoughts and express gratitude for your continued trust in Vedanta. Our journey of growth and shared value creation continued unabated during FY 2023 despite market volatility. We owe this success to our team whose agility in pursuing opportunities, thought leadership and decisive action brought us closer to achieving our ambitious goals. 22 MESSAGE FROM ThE ChAIRMAN INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS India gains global prominence FY 2023 has been an incredible year for India. The country outperformed and repositioned itself amongst the world’s fastest-growing economies, even as most developed nations faced slower growth amidst high inflation. It posted an impressive 6.8% GDP growth in FY 2023, after delivering 9.1% growth in the previous fiscal year. It is indeed encouraging to witness this growth story unfold with a visible supply chain shift in India’s favour and its manufacturing prowess getting due recognition globally. India’s improved outlook in many ways is attributable to the government’s quest for self-reliance in manufacturing, minerals and resources. Its importance was accentuated in the aftermath of the pandemic and the Russia-Ukraine conflict, which saw heightened uncertainties and geopolitical tensions globally. Several countries have found themselves precariously positioned, given their dependence on others for key resources. Reassessment of supply chain strategies globally was thus inevitable. Already “China Plus One" policy is gathering momentum as companies and countries seek to diversify their reliance beyond China to other destinations. India finds itself in an advantageous position, particularly in creating a resilient supply chain and indigenous manufacturing. Energy security and world-class infrastructure will be key to the success of this journey. This trinity of manufacturing, infrastructure and energy along with a focus on digitalisation can continue to propel India's economic growth, unlock new business opportunities and create jobs. It is expected that India's GDP will double to US$7.5 trillion during 2022-2031 with a substantial rise in the contribution from manufacturing. The Union Budget 2023 also seems to have hit the right notes by prioritising green and digital economies and infrastructure creation through increased capital expenditure allocations. It further focusses on giving a boost to MSMEs with a revamped credit scheme. The Indian economy remains on a strong footing, with unprecedented levels of optimism and multiple advantageous factors at play. The determined We reported a strong set of financial results, `1,45,404 crore in revenue and `35,241 crore in EBITDA. We have generated a healthy net-free cash flow of `18,077 crore. This all-round performance is a testament to our outstanding portfolio and accomplished leadership team. implementation of various positive policies and programmes will drive India’s exceptional growth story for years to come. Vedanta for a self-reliant India As India’s largest diversified natural resources company and one of the largest corporations globally with businesses spanning metals, mining and energy, Vedanta has a distinct advantage in India’s journey of self-reliance. Our mining expertise powered by best-in-class technology and talented people along with a robust value-added portfolio positions us attractively to harness the evolving growth opportunity. We envisage a greater role for us in the nation’s growth story and in making India self-reliant for minerals and energy - an imperative given the growing population and rising industrial activity. Vedanta is already expanding its aluminium and zinc capacities. Our oil and gas operations, which account for nearly one-quarter of India's production, is also diversifying its reserves and resources portfolio towards a vision of contributing 50% to India’s total Oil and Gas production. We have already invested US$1.2 billion in the form of growth capex in FY 2023 to augment our assets and production. We envisage committing another US$1.7 billion in FY 2024 towards growth projects. Delivering all-round performance This year, we operated against a difficult and uncertain macro-environment, driven by prolonged geo-political conflict, subsequent energy crisis and aggressive monetary policies adopted by central banks. Our teams delivered excellent operating performance despite the challenges posed by uncertain commodities markets and supply chain realignments. We reported a strong set of financial results, `1,45,404 crore in revenue Expanding Nand Ghar footprint 23 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Vedanta is now ranked #6 among the top 10 diversified metal and mining peers on the Dow Jones Sustainability Index. Further, Vedanta and its various group companies received multiple awards in finance, operational excellence, CSR and HR categories across various recognised platforms. and `35,241 crore in EBITDA. We have generated a healthy net-free cash flow of `18,077 crore. This all-round performance is a testament to our outstanding portfolio and accomplished leadership team. Vedanta is committed to growing responsibly, by ensuring that the communities in which we operate, thrive and grow with us. Our flagship programme ‘Nand Ghar’ has been working extensively to strengthen the Aanganwadi ecosystem in India and bridge the urban-rural gap with best-in-class services. We now have Nand Ghars across 14 states which have collectively uplifted 3.2 lakhs women and children through education, nutrition and healthcare. In continuation of our ‘net zero’ journey, we have signed renewable energy power delivery agreements (PDAs) under the Group’s captive policy during FY 2023. We have also moved a step closer towards realising our philosophy of “zero harm, zero waste, zero discharge” with three more of our business sites being declared water positive. Our ESG efforts have led to significant improvements in our position across key external ratings platforms, like Dow Jones Sustainability Indexes, Sustainalytics, MSCI and CDP. Vedanta is now ranked #6 among the top 10 diversified metal and mining peers on the Dow Jones Sustainability Index. Further, Vedanta and its various group companies received multiple awards in finance, operational excellence, CSR and HR categories across various recognised platforms. Quest to transform and grow together Vedanta stands for the highest standards of excellence and integrity and strives to achieve sustainable and responsible growth together with all stakeholders. Our new Ensuring sustainable operations 24 theme, ‘Transforming Together’, embodies this commitment by fostering collective actions to achieve inclusive, responsible and value-accretive growth. These efforts will be underpinned by environmental stewardship, social equity and impact, besides good governance to deliver tangible benefits to all stakeholders. Inclusive It is our continuous endeavour to drive a more resource and minerals-secure world but with the utmost consideration for our people, stakeholders and communities at large. We believe people are our greatest assets. Through our industry-leading, globally- benchmarked people practices, we promote a work culture that fosters an ecosystem of trust, high performance and inclusivity, with safety being a top priority. Diversity is an area where Vedanta has performed exceptionally with efforts around enhancing women’s representation at higher levels including CXO positions, attracting talent from all regions and promoting an LGBTQ+ friendly workplace. Our efforts towards employees’ well-being have earned us Great Place to Work® accreditation and the esteemed Kincentric Best Employer Award – India 2022. We are making significant progress in our mission to combat malnutrition and achieve zero hunger. This year, Nand Ghar reached the 4,500 mark across 14 states. We also reached out to people, globally, to join us in the Run for Zero Hunger movement with the Vedanta Delhi Half Marathon and Vedanta Pink City Half Marathon. Hundreds of thousands of people joined us in this movement, and we pledged 2 million meals for a healthy and nourished India. In the International Year of Millets and in line with Poshan 2.0 initiative, Nand Ghar also launched a multi-millet nutribar for the holistic nourishment of every child. We continue to positively transform the lives of our communities through targeted social impact interventions. I am happy to share that this year, we were able to touch the lives of 44 million community members across India and abroad. Responsible Climate change is a defining challenge in the current era. Vedanta seeks to address this. We have set ambitious goals, aligned with UN’s Sustainable Development Goals, for environmental stewardship through decarbonisation, circular economy and water positivity. We are also working in partnership with trade bodies and governments to ensure all stakeholders push towards these goals. MESSAGE FROM ThE ChAIRMAN INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS In FY 2023, substantial progress was made towards net carbon neutrality. In a pioneering effort, we became the first corporate in South Asia to join the World Economic Forum’s 1 trillion trees movement with a pledge to plant 7 million trees by 2030. We are taking steady steps to achieve 2.5 GW round-the-clock renewable energy (RE RTC) targeted capacity by 2030. We have also rolled out a unique industry-leading EV policy to incentivise employees to switch to EVs and are well on track towards decarbonising 100% of our light motor vehicles fleet by 2030. Value-accretive Vedanta’s strategic investments and prudent financial management strategy are to ensure long-term sustainable growth and consistent shareholders’ returns. With this strategic objective, we are investing in various projects for volume growth, backward integration and value-added products, as well as advancing digitalisation at pace. The Company’s healthy performance and progress in growth projects, helped us declare a total of `37,730 crore as dividend in FY 2023 in alignment with our capital allocation policy. This translated into a dividend yield of 30%, one of the best among peers. We have an impeccable track record of honouring all capital market commitments. Vedanta Resources, which is the holding company of Vedanta Limited, has deleveraged by US$2 billion during FY 2023 against its commitment of US$4 billion deleveraging over three years. Good governance We place great importance on good governance practices with stringent policies and frameworks for implementation. In recognition of its governance practices, Vedanta was bestowed with the prestigious ‘Golden Peacock Global Award for Excellence in Corporate Governance 2022’. We are committed to raising the bar continually in this area. We have taken proactive steps to enhance our disclosure practices by voluntarily publishing the Annual Sustainability Report and the Tax Transparency Report and adopting the Integrated Reporting Practice. Demonstrating our dedication to climate matters, we have published our second Task Force on Climate- related Financial Disclosures (TCFD) report this year, while our Aluminium business released its inaugural TCFD report. Uplifting community through Skill Training Exciting times ahead We are optimistic about an exciting journey ahead. The macroeconomic factors and risks faced by advanced economies going into recession may pose potential challenges to metal demand. Yet the overall sentiment towards mined commodities is improving as the pace of energy transition accelerates across the globe. Even in the macro backdrop, some green shoots are already visible with inflationary pressures beginning to ease and supply chain constraints showing signs of relenting. This will help to improve profitability and generate robust cash flows. The demand side remains buoyant with the re-opening of China and the global trend towards a green economy and digital economy. India’s focus on electric mobility, renewable energy and infrastructure creation is expected to drive domestic minerals demand and attract global investments. We expect vast opportunities to unfold in the coming years. Our focus is on consolidating our leadership position and unlocking value through growth project execution, scaling innovation and digitalisation and progressing on ESG targets. We also remain committed to improving our financial profile and continue to make disciplined capital allocation decisions. On this positive note, I thank all our stakeholders for believing in our growth story. We seek your continued support in our efforts to create value for all and continue to be a partner in and contribute to India’s remarkable economic rise. Best regards, Anil Agarwal Chairman We expect vast opportunities to unfold in the coming years. Our focus is on consolidating our leadership position and unlocking value through growth project execution, scaling innovation and digitalisation and progressing on ESG targets. 25 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MESSAGE FROM THE CEO & MD EXECUTING STRATEGY AND DEMONSTRATING OUR RESOLVE Dear Stakeholders, The Indian economy thrived during FY 2023, driven by healthy macroeconomic fundamentals and domestic consumption even as interest rates went up. Commodity prices, however, moderated, weighed down by global macroeconomic challenges. Amid this backdrop, Vedanta once again demonstrated resilience and commitment to excellence, emerging stronger through difficult times. Our team executed strategies to ensure steady operational performance and strong cost control, resulting in a commendable financial performance. Throughout the year, our sustainability- focussed and integrated business model propelled value-creation, delighting our stakeholders. Vedanta declared the highest- ever dividend of `101.5 per share to its shareholders and contributed ~`73,486 crore to the exchequer. We made significant advancements on crucial Environmental, Social and Governance (ESG) commitments besides expanding capacities and our portfolio of value-added products in line with global trends and India’s journey of reliance. This positions us ideally to capitalise on emerging opportunities, and power the next phase of growth, which will be more sustainable and predictable through economic cycles. The big leap in ESG At Vedanta, FY 2023 was a year of remarkable progress on the ESG front led by our ‘Transforming for Good’ purpose. We positively touched more than 44 million lives, improved diversity, inclusion and governance practices and took major strides in the areas of carbon neutrality, water positivity and a greener business model. These actions propelled MESSAGE FROM ThE CEO & MD INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Our continued focus on high quality, asset optimisation and digital transformation, enabled us to maximise asset utilisation. We achieved robust production volumes and the highest- ever revenues. Visible Felt Leadership (VFL) and personal safety programmes. Across the plants, safety infrastructure is being upgraded and training frequency has been increased. We have also fast-tracked the roll-out of the Critical Risk Management (CRM) module to mitigate three major risk areas of vehicle-pedestrian interaction, working at heights, and uncontrolled energy release. Delivering resilient performance We delivered an impressive performance across our businesses, reflecting our continual focus on establishing a high-performance, low-cost, long-life asset base. Our continued focus on high quality, asset optimisation and digital transformation, enabled us to maximise asset utilisation. We achieved robust production volumes and the highest-ever revenues. I am delighted to report that we closed FY 2023 with an 11% growth in revenue to `1,45,404 crore, EBITDA for the year was `35,241 crore, with an industry-leading margin of 28%1. The dual challenges of high input costs and lower realisations led to a contraction in margins, which was partially offset by improved operational performance and strategic hedging gains. We are actively pursuing cost optimisation initiatives around improving linkage coal materialisation and operational efficiencies to make our profitability more predictable through commodity cycles. As of 31 March 2023, our net debt stood at `45,260 crore. The balance sheet position remains strong with healthy cash and cash equivalents of `20,922 crore and a robust net debt to EBITDA ratio of 1.3x. The average term debt maturity is maintained at ~3.4 years. our ambitious ESG goals and earned us prestigious recognition. Vedanta Limited became the only company from India this year to get listed in The Dow Jones Sustainability™ World Index and The Dow Jones Sustainability™ Emerging Markets Index. Further, we ranked 6th globally and 2nd in Asia Pacific in the metal and mining sector of the S&P Global Corporate Sustainability Assessment 2022. Across the Group, agreements for 788 MW of renewable energy (RE) round-the-clock (RTC) have been signed, which will take us closer to our 2.5 GW RE target and help reduce our carbon footprint significantly. Cairn India’s iron ore business and Zinc International’s Black Mountain Mines joined HZL to be certified water positive. High volume low toxicity (HVLT) wastes which can potentially harm human health and degrade the environment, have been better managed with unique efforts, resulting in their utilisation increasing to 162%. Vedanta raised its first Sustainability Linked Loan (SLL) from leading international banks in FY 2023. The loans were granted basis our decarbonisation and safety performance parameters. The proceeds of US$250 million will be utilised for financing capex initiatives focussed on business growth and achieving a higher degree of backward integration. The intent now is to scale up ESG actions with greater emphasis on inclusive, sustainable and responsible growth. This is the essence of our new ‘Transforming Together’ theme that will help us achieve ESG leadership and reinforce a value-accretive journey. Stepping up zero harm culture We place the utmost importance on the health and safety of our employees. Despite our continued efforts, I am deeply saddened by 13 tragic fatalities this year and the irreparable loss to their families, friends and colleagues. We have disseminated the findings of the investigation reports across Group companies, and I can assure you that we are fully focussed on ensuring workplace safety across our entire business. The respective business CEOs have already stepped-up risk management efforts by implementing fatality learnings and are spending greater time on the field through Note 1: Excludes copper smelting at Copper Business Employee safety an utmost priority 26 27 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 In FY 2023, we delivered significant progress across all our businesses with record volumes in Aluminium, Zinc India and Zinc International businesses. Key cost reduction, capex and operational improvement projects enabled us to stay on course with our growth plans. Investing in future Vedanta’s long-term focus is to grow in India, in sync with the country’s robust economic and demand growth. We see new-age India to be more mineral-intensive. The emphasis on electric mobility, infrastructure creation, renewable energy and efforts to establish India as an electronics hub are all set to enhance demand for key metals and minerals. Capitalising on these opportunities aligned to the nation’s needs, Vedanta is expanding capacities across various businesses, which are in various stages of implementation. Further, projects aimed at achieving raw material security are also being pursued. A disciplined capital allocation approach is being followed across all projects to ensure higher returns while maintaining strong balance sheet. Operational and strategic review In FY 2023, we significantly progressed across all our businesses with record volumes in aluminium, Zinc India and Zinc International and steel business. Key cost reduction, capex and operational improvement projects enabled us to stay on course with our growth plans. Aluminium The business achieved the highest-ever aluminium production at 2.29 million tonnes in FY 2023, which included 59 kt of green aluminium (branded Restora and Restora Ultra). During the year, we pursued structural initiatives like optimising the coal and bauxite mix, improving capacity utilisation and implementing growth and vertical integration projects. We completed the Jharsuguda capacity ramp-up to 1.8 MTPA and going forward, Lanjigarh refinery expansion from 2 MTPA to 5 MTPA remains our key focus area. We also strengthened Employees at Cairn, Oil and Gas 28 long-term coal supply at competitive prices by emerging as the successful bidder for the Ghogharpalli coal block. Jamkhani coal block has been operationalised. Commencement of Kuraloi (A) North and Radhikapur West mines is expected in the next 12-18 months. On the bauxite front, LOI has also been issued for the Sijimali bauxite block, with an estimated reserve of 311 million tonnes of bauxite. In an endorsement of sustainable operations, the business was ranked 2nd among DJSI’s ranked aluminium peers. Zinc Zinc India registered its best-ever mined metal production of 1,062 kt and refined metal production of 1,032 kt. Silver production grew by 10% to 714 kt. Despite rising input costs, it continues to be in the first quartile of the global cost curve. Key projects are under execution at RD Mines complex to expand MIC capacity to 1.25 MTPA. In line with our vision of increasing metal volumes to 1.2 MTPA, the installation of a new 160 KTPA Roaster in Debari, HZAPL alloy project, and 1.6 LTPA Fumer plant are major projects under execution. One of the most notable achievement has been the successful commissioning of a 3,200 KLD Zero Liquid discharge (RO-ZLD) plant at the Dariba smelter. Apart from that, Zawar mine (ZM) and Rampura Agucha mine ZLD projects of 4,000 KLD capacity each have been initiated to improve recycling and strengthen the zero discharge. Zinc International recorded its highest-ever mined metal production of 273 kt, including 208 kt at the Gamsberg mine and 65 kt at BMM. Gamsberg achieved 12% reduction in the cost of production excluding Treatment Charge and Refining Charge (TcRc) during the year. For increasing MIC production from 300 KTPA to 600 KTPA, the Zn Concentrator Plant with 200 KTPA capacity and the 210 KTPA Smelter project are under execution. Oil & Gas In the Oil & Gas segment, our efforts were focussed on adding reserves and resources. The infill wells across producing fields have enabled us to mitigate a part of the production decline. We are working on development projects to unlock potential of our contingent resource base. Exploration activities across the portfolio have enabled us to generate prospects and add resources. MESSAGE FROM ThE CEO & MD INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Iron Ore The business seized opportunities with robust execution and agility to overcome market sluggishness on account of duty imposition and export ban. Post the withdrawal of export duty in December 2023, we became the first to complete an export shipment of Karnataka-origin ore. We also commenced ore production in our Liberia mine and completed its first-ever export shipment. The production of saleable iron ore at Karnataka was flat at 5.3 million tonnes and that of value-added pig iron was down by 12% to 696 kt. Steel ESL performed resiliently amidst challenges that were used as an opportunity to be future-ready by undertaking yield improvement, debottlenecking and plant maintenance initiatives. ESL registered an increase in saleable production to 1,285 kt with the highest ever net sales realisation, resulting in favourable EBITDA margins. It continued to prioritise its value-added portfolio, resulting in a 5% increase in its sales. ESL successfully operationalised two iron ore mines with 100% captive sourcing of iron ore. FACOR We successfully commenced production at new 60 KTPA furnace in February 2023, taking the total Fe-Cr alloy capacity to 140 KTPA. We also completed the merger of FACOR and FACOR Power Plant Limited. FACOR recorded the highest-ever chrome ore production at 290 kt in FY 2023, a 16% increase over the previous year. Ferrochrome production decreased by 11% to 67 kt. Nicomet In FY 2023, we successfully operationalised the Nicomet plant and were able to stabilise plant operations for producing premium quality products. Additionally, the nickel plant for producing Ni metal was commissioned later in the year. The first despatch of NiSo4 & Ni metal was executed in March 2023. Going forward, the focus is on developing our customer base in domestic and export markets. Positioned to deliver long-term value Vedanta has grown substantially in the past year. With our employee-centric approach, Vedanta has been recognised with the ‘Kincentric Best Employer of the Year’ Employees at Operational sites award. We continue to upskill young leaders, and empower women and business partners through various flagship programmes. Our fundamentals are stronger, assets are more competitive and expansion projects are all set to enhance the life of assets and volume growth. We have reinforced our market- leading position in the natural resources sector, which has promising upside potential in the long run. Drawing inspiration from these achievements, we are determined more than ever to aim higher. We will maintain an unrelenting focus on priorities to deliver on our ambition of transforming together to create shared value. The safety of our people and other stakeholders will remain a top priority. It will require us to make incremental investments and bring revolutionary change to achieve and sustainably maintain the ambition of zero harm. At the same time, we are inspired to secure long-term growth and embedding ESG across every facet of business will be key to this. We will need to move with greater agility toward our goals of climate change, inclusive development and an equitable workplace. Lastly, we must maintain top- notch asset quality with operational stability and drive focussed volume growth to capitalise on potential growth opportunities. Our success will be dependent on our ability to balance these priorities and commitments so that we can contribute towards a better world together. Best regards, Sunil Duggal Chief Executive Officer Vedanta has grown substantially in the past year. With our employee-centric approach, Vedanta has been recognised with the ‘Kincentric Best Employer of the Year’ award. 29 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Vedanta's centralised process system unlocks the power of automation and enables superior process controls CASE STUDY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Electrosteel Steels Limited Vedanta Aluminium Limited ESL improves blast furnace performance with process digital twin Problem statement Blast furnace involves various integrated processes. Operators at ESL Steel typically relied on their experience to control burden distribution, blowing parameters and casting parameters. Considering the multiple parameters and wide variation in input conditions, such decisions sometimes proved inaccurate, causing brief production drops and increased fuel rates due to sub-optimal control. Solution ESL is implementing the process of digital twin technology to address the challenge. This uses artificial intelligence (AI), machine learning and high-performance computing to optimise the equipment and the manufacturing process. It will facilitate efficient control of blast furnace operations through predictive alerts and provide data-backed standard operating procedure (SOP) for all controllable parameters. The tool includes four modules which will help in: • Getting a data-backed digital SOP for ensuring better burden distribution • Facilitating real-time root-cause analysis of fuel rate increase to identify the actions to control it • Assisting to improve control and prediction of hot metal silicon prediction to minimise variations • Achieving better, real-time visibility of coke and sinter average particle size using computer vision Currently, two modules have been implemented, and the other two will be launched in Q1 FY 2024. Targeted outcome 4-5%* Increase in production ~2%* Annual cost reduction US$8.4 MILLION* Annual savings *Based on H1 FY 2023 baseline Next step Fast-tracking implementation of the other two modules Advanced process controller optimises efficiency and specific consumption at Lanjigarh Problem statement Alumina refining is a complex and highly interactive industrial process, necessitating advanced control strategies. Evaporation, in particular, is a critical aspect of the process, which utilises steam to concentrate the spent liquor from the process and effectively reutilises it, without disturbing process inventory. At Lanjigarh Refinery, this entire process was controlled in semi-automatic mode by operators, resulting in lower efficiency due to slow response time and operator- driven variance. It inevitably led to higher specific steam consumption (SSC). Solution Lanjigarh Refinery implemented the advanced process control (APC) technique across the refinery process to improve performance. APC is a robust system that optimises the operational efficiency of a process and productivity, by maintaining optimal operating conditions and integrating all possible process constraints into a predictive controller. This action helps to maintain dependent (controlled) variables at targeted levels or within constraints, by manipulating the independent variables. At Lanjigarh, APC was implemented by developing a predictive model for controlling and optimising specific steam consumptions across the evaporation units by minimising variability and driving efficiencies. The Refinery has benefited as follows: • Tighter control of process parameters and elimination of manual errors in the process following automation • Decline in process variations resulting in enhanced efficiency and reduction in the specific consumption • Auto optimisation of process control strategies with predictive algorithms Next step We intend to proliferate APC utilisation across different units of the refinery. An APC Global Optimiser is planned for overall process control and coordination and for building the platform for digital twins. 30 31 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 CASE STUDY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS A thriving, self-sustaining ecosystem at Dariba Smelting Complex to restore the balance of nature. Hindustan Zinc Limited Transforming the planet with Miyawaki afforestation at Dariba smelting complex Improved biodiversity Through lowered temperature, better soil nutrition and wildlife support Goals met Vedanta Aim 6 innovation for greener business model Next step We plan to replicate the project across all units. Problem statement Number of trees in the world has halved, and every passing year another 15 billion are lost. This has harmed global biodiversity and ecosystems, threatened health and food security, and has made the world less resilient to climate change impact. Solution Vedanta has pledged to plant 7 million trees as part of the World Economic Forum’s ‘1 trillion trees’ campaign or UN SDG Goal of 1 million plantations by 2025. To implement this pledge, we have undertaken a tree plantation drive at Dariba Smelting Complex (DSC) using the Miyawaki afforestation method. It involves planting dozens of native species in the same area, resulting in 10x faster plant growth and 30x denser than usual plantation, leading to higher carbon sequestration. Such a plantation becomes self-sustaining after the first three years. Besides, it is chemical-free and supports local biodiversity. Until now, 12,000 trees across 65 different species have been planted covering an area of one hectare. Miyawaki Afforestation at Dariba 32 33 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 CASE STUDY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Sterlite Industries (India) Limited Sterlite Copper advances low-carbon journey with green copper Problem statement Sterlite aims to promote responsible and environmentally sustainable production of copper to achieve its goal of net zero carbon emissions from operations by FY 2030. Green copper will enable a reduction in our carbon footprint and ensure optimal utilisation of resources while caring for communities. Solution Sterlite Copper has embraced revolutionary changes in daily operations to achieve the objective of green copper and reducing its carbon footprint. These include: • Smart fuel optimisation project – AI-ML driven solutions have been successfully deployed in shaft furnaces of (Rod Plant and Blister Plant) for optimising fuel consumption • Recycled copper production project – Using fire- refined high conductivity (FRHC) technology to scale up recycled copper capacity by 20% to 4,000 tonnes/ month at Silvassa and by 30% to 3,400 tonnes/month at Fujairah. Secondary copper is melted and oxidised in the furnace • Hybrid renewable energy (RE) contract – Power development agreements have been signed for 16 MW RE RTC to switch off from conventional thermal power • Fleet decarbonisation – The project, being implemented at the Chinchpada plant, Silvassa, involves the conversion of pool vehicles to EV/CNG, employee commute vehicles to CNG and electrification of forklifts. It is expected to be completed by June 2023 Targeted Outcome 57% GHG emission reduction (from FY 2021 baseline) 3,554 tCO2e reduction through smart fuel optimisation 92,000 tCO2e reduction through recycled copper rod production 64,535 tCO2e reduction through hybrid renewable energy contract Sterlite secures 16 MW renewable energy contract for its green copper journey Afforestation at Tuticorin 34 35 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 CASE STUDY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Dariba Smelting Complex turnaround lead smelter to achieve 94.5% efficiency levels Hindustan Zinc Limited Turning around lead smelter at Dariba Smelter Problem statement DSC’s lead smelter is designed for an optimal production capacity of 108 KTPA lead cathode at 93% efficiency, running 350 days and utilising 6.8 kiloampere (kA) current. However, its production was unstable. A major hit was witnessed in Q4 FY 2022 due to parameters disturbance (purity and chemical composition) due to an externally sourced input commodity, which went unnoticed. This caused rough dendritic deposition on cathodes, causing corrosion, poor current efficiencies and lower weight deposition. Solution The smelting team did a thorough analysis to improve the production. This included brainstorming, benchmarking with similar smelters, holding a dialogue with industry experts and conducting a multi-variability study of cell house parameters and deviation (to compare numbers) using six-sigma regression modelling. Lastly, based on the data, test cell experimentations were done. The correction finally came with continuous heavy-dose additions of Glue and B-Naphthol which brought the dendrite depositions under control and improved lead deposition. This has resulted in consistent lead production with better efficiency. Outcome 65% Increase in daily production rate to 330 tonnes from the lowest recorded level of 200 tonnes Highest-ever annual production at 112.6 KTPA in FY 2023 94.5% Efficiency levels achieved, up from 90% average Next step We are working on a long-term plan to upgrade the cell house with advanced automation control systems, to drive efficiency through better control of process parameters. Dariba Smelting Complex (DSC) 36 37 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 KEY PERFORMANCE INDICATORS TESTAMENT TO SUSTAINED VALUE CREATION GROWTH INDICATORS KEY FINANCIAL RATIOS Revenue (` crore) EBITDA (` crore) Debtors’ turnover ratio* Inventory turnover ratio kEY PERFORMANCE INDICATORS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS , 4 0 4 5 4 1 , , 2 9 1 1 3 1 , 3 6 8 6 8 , FY 2021 FY 2022 FY 2023 Description: Revenue represents the value of goods sold and services provided to third parties during the year Commentary: In FY 2023, consolidated revenue was at `1,45,404 crore compared with `1,31,192 crore in FY 2022. This was primarily driven by higher volumes from copper and zinc and aluminium, rupee depreciation and partially offset by the slip in commodity prices majorly in aluminium and copper 9 1 3 5 4 , 1 4 2 5 3 , 1 4 3 7 2 , FY 2021 FY 2022 FY 2023 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 FY 2023 was at `35,241 crore, 22% lower YoY. This was mainly due to a slip in commodity prices of aluminium, lead and silver with a headwind in input commodity prices, partially offset by improved operational performance and strategic hedging gains FCF post-capex (` crore) Return on capital employed (ROCE) (%) 5 1 7 1 2 , 7 7 0 8 1 , 1 2 8 3 1 , FY 2021 FY 2022 FY 2023 Description: This represents net cash flow from operations after investing in growth projects. This measure ensures that profit generated through our assets is reflected by cash flow, in order to de-lever or maintain future growth or shareholder returns Commentary: We generated FCF of `18,077 crore in FY 2023, driven by strong cash flow from operations and working capital release, partly offset by higher capex 0 3 9 1 1 2 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 FY 2021 FY 2022 FY 2023 Commentary: ROCE stood at 21% in FY 2023 (FY 2022: 30%), primarily due to decrease in EBIT . 9 3 3 . 5 2 3 8 . 1 3 Description: The debtors’ turnover ratio is an accounting measure used to quantify a company's effectiveness in collecting its receivables. This is calculated as a ratio of revenue from operation to average trade receivables 5 . 7 1 7 . 6 5 . FY 2021 FY 2022 FY 2023 Commentary: The debtors’ turnover ratio was 31.8 times FY 2021 FY 2022 FY 2023 Current ratio 0 1 . 0 1 . 7 . 0 Debt-equity ratio 3 . 1 Description: The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. This is calculated as a ratio of current assets to current liabilities . 7 0 6 0 . FY 2021 FY 2022 FY 2023 Commentary: The current ratio of the Company remained at 0.7 times FY 2021 FY 2022 FY 2023 Description: The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed. This is calculated as a ratio of the cost of goods sold, to the average Inventory Commentary: The inventory turnover ratio for the Company was at 7.5 times in FY 2023 as compared with 7.1 times in FY 2022 Description: This 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: This ratio has increased to 1.3 times in FY 2023 primarily due to an increase in gross debt from the increase in borrowings at VEDL standalone and temporary borrowings at HZL Adjusted EBITDA margin (%) Net debt/EBITDA (consolidated) Operating profit margin (%) Net profit margin (%) 9 6 3 3 8 2 Description: Calculated as EBITDA margin excluding EBITDA and turnover from custom smelting at copper business 3 . 1 9 0 . 5 0 . FY 2021 FY 2022 FY 2023 Commentary: Adjusted EBITDA margin for FY 2023 was 28% (FY 2022: 39%) FY 2021 FY 2022 FY 2023 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 Commentary: Net debt/EBITDA ratio as of 31 March 2023, was at 1.3x well within approved capital allocation framework, compared with 0.5x as on 31 March 2022 8 2 3 2 7 1 FY 2021 FY 2022 FY 2023 Description: Operating profit margin is a profitability or performance ratio used to calculate the percentage of profit a 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 for the Company was lower in FY 2023 as compared with FY 2022, primarily due to lower EBITDA and higher depreciation in the current year 9 1 9 1 0 1 Description: This is a measure of the Company’s profitability. It is calculated as a ratio of net profit (before exceptional items) to revenue from operations FY 2021 FY 2022 FY 2023 Commentary: The net profit margin was at 10% in FY 2023 as compared to 19% in FY 2022 Interest cover (%) Return on net worth (%) . 0 5 1 . 0 1 1 2 . 8 Description: This 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 FY 2021 FY 2022 FY 2023 Commentary: The interest cover for the Company was at 8.2 times, lower YoY on account of lower EBITDA and higher interest 0 3 2 2 2 2 Description: This is also a measure of the Company’s profitability. It is calculated as a ratio of net profit (before exceptional items) to average net worth (share capital + reserves + minority) FY 2021 FY 2022 FY 2023 Commentary: The return on net worth has decreased, mainly on account of a decrease in EBITDA during the year *Excluding power business 38 39 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 LONG-TERM VALUE Reserves and resources (R&R) Description: Reserves and resources are based on specified guidelines for each commodity and region Growth CAPEX (` crore) Zinc India (million tonnes) 1 7 2 0 1 , 8 4 4 8 4 4 0 6 4 9 5 6 5 , 8 7 5 2 , FY 2021 FY 2022 FY 2023 Description: This represents the amount invested in our organic growth programme during the year Commentary: Our stated strategy is disciplined capital allocation on high-return, low-risk projects. Capital expenditure on expansion was `10,271 crore during the year Commentary: During the year, combined R&R were estimated to be 460.1 million tonnes, containing 30.8 million tonnes of zinc-lead metal and 855.9 million ounces of silver. Overall mine life continues to be more than 25 years FY 2021 FY 2022 FY 2023 EPS (before exceptional items) (`) Zinc International (million tonnes) 2 0 2 5 . . 0 8 2 3 6 3 . 8 2 FY 2021 FY 2022 FY 2023 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 FY 2023, EPS before exceptional items was at `28.36 per share. This mainly reflects the impact of lower EBITDA and higher depreciation charges and finance cost 1 7 6 9 5 6 6 6 5 FY 2021 FY 2022 FY 2023 Commentary: During the year combined mineral resources and ore reserves estimated at 659.1 million tonnes, containing 34.9 million tonnes of metal Dividend (`/share) Oil & Gas (mmboe) 0 5 . 1 0 1 9 2 2 1 , 1 5 1 1 , 6 5 1 1 , . 0 0 5 4 0 5 9 . FY 2021 FY 2022 FY 2023 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 `101.5 per share this year compared with `45 per share in the previous year FY 2021 FY 2022 FY 2023 Commentary: During FY 2022, the gross proved, and probable reserves and resources stood at of 1,156 mmboe kEY PERFORMANCE INDICATORS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS SUSTAINABILITY KPIs GHG emissions scope 1 & 2 (million tonnes of CO2e) . 9 8 5 . 5 9 5 . 1 7 5 . 3 1 . 3 3 6 8 . FY 2021 FY 2022 FY 2023 Scope 1 Scope 2 Description: Vedanta used Scope 1 and Scope 2 GHG emissions, measured in tonnes of CO2e to track its carbon footprint Commentary: 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 HVLT (high volume low toxicity) (million tonnes) . 9 9 2 . 9 7 1 . 1 9 1 . 8 6 1 . 6 8 1 . 4 8 1 FY 2021 FY 2022 FY 2023 Generation Recycled Description: High Volume Low Toxicity (HVLT) waste is present in large quantities and is usually stored in tailings dams/ash dyes or other secure landfill structures before being sent to other industries as raw materials. HVLT includes fly ash, bottom ash, slag, jarosite, and red mud Commentary: In FY 2023, we have achieved ~164% recycling of our HVLT waste Water consumed & recycled (million m³) 0 7 2 7 7 2 6 6 2 3 8 6 8 8 7 FY 2021 FY 2022 FY 2023 Consumed Recycled Description: Water consumed is the portion of water used that is not returned to the source after being withdrawn. Recycled water or reclaimed water means treated or recycled wastewater commonly used for non-potable (not for drinking) purposes, such as agriculture, landscape, public parks, and golf course irrigation (million m3) Commentary: In FY 2023, we recycled 78 million m3 of water, equivalent to around 29.4% of consumed water TRIFR . 5 1 4 1 . 2 1 . Description: The total recordable injury frequency rate (TRIFR), is the number of fatalities, lost time injuries, and other injuries requiring treatment by a medical professional per million hours worked FY 2021 FY 2022 FY 2023 Commentary: This year, the TRIFR was 1.20. Safety remains the key focus across businesses Description: The total number of beneficiaries through our community development programmes across all our operations Commentary: We benefited ~44 million people this year through our community development projects comprising community health, nutrition, education, water and sanitation, sustainable livelihood, women empowerment and bio-investment CSR Footprint (million beneficiaries) * 2 4 * 4 4 . 6 4 FY 2021 FY 2022 FY 2023 Gender diversity (%) . 0 4 1 . 2 1 1 . 5 1 1 Description: The percentage of women in the total permanent employee workforce Commentary: We focus on diversity, equity and inclusion in the workplace. During the year, female employees made up 14.00% of the total workforce FY 2021 FY 2022 FY 2023 Note *Includes both direct and indirect beneficiaries 40 41 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 VALUE CREATION MODEL INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS VALUE CREATION MODEL TRANSFORMING FOR BETTER OUTCOMES Inputs Financial capital • Equity: `372 crore • Gross Debt: `66,182 crore • Net Worth: `49,427 crore • Cash and Cash Equivalent: `20,922 crore • Growth Capex: `10,271 crore Business Segments Manufactured capital • Plant and Equipment: `1,15,273 crore • Capital Work in Progress (WIP): `17,434 crore Processes Zinc Aluminium Oil and Gas Iron Ore Steel Ferro Alloys Copper Explore We invest selectively in exploration and appraisal to extend mine and reservoir life Creating Value for Stakeholders Human capital • Total Workforce: 87,513 • HSE workforce (incl. contractors): 817 • No. of geologists (incl. contractors): 188 • No. of hours of training: 28,65,662 • No. of hours of safety training: 21,07,035 • Employees covered under mentoring and support programs: 2,199 Social and relationship capital • Community investment: `454 crore • Rated by two domestic rating agencies: CRISIL & India Rating • Strong network of global and domestic relationship banks: 30+ • Independent Directors: 4 Natural capital • Energy consumption: 559 million GJ • Water consumed: 266 million m3 • Coal used: 34.5 million tonnes • HVLT waste generated: 18.4 million tonnes • Fly ash generated: 13.86 million tonnes • R&R Zinc India: 460 million tonnes, containing 30.8 million tonnes of zinc-lead metal and 855.9 million ounces of silver • R&R Zinc International: 659.1 million tonnes, containing 34.9 million tonnes of metal • R&R Oil & Gas: 1,156 mmboe gross proved, and Pg. 78 probable reserves and resources Develop We develop world-class assets, using the latest technology to optimise productivity Process We focus on operational excellence and high asset utilisation to deliver top-quartile cost performance and strong cash flows Extract We operate low-cost mines and oil fields, with a clear focus on safety and efficiency Market We supply our commodities to customers in varied industry sectors, from automotive to construction, with a product base ranging from energy to consumer goods Shareholders `37,730 CRORE Dividend Declared Communities Industries `454 CRORE CSR spend `35,116 CRORE Local Procurement Employees 87,513 Total Workforce Governments `73,486 CRORE Exchequer Contribution Outputs and Outcomes Financial capital • Turnover: `1,45,404 crore • EBIDTA: `35,241 crore • Total exchequer contribution: ~`73,486 crore • Attributable PAT (before exceptional items): `10,521 crore • Earnings per share (EPS) (before exceptional Items): `28.4 per share • Dividends declared: `37,730 crore • FCF post-capex: `18,077 crore • RoCE: 21% • Net Debt to EBITDA: 1.3x Manufactured capital • Zinc India: Mined Metal – 1,062 kt Integrated Metal – 1,032 kt • Oil & Gas: 143 kboepd • Power: 14.8 bn kWh • Aluminium: Alumina – 1.8 million tonnes Aluminium – 2.3 million tonnes • Pig Iron: 696 kt • Zinc International: 273 kt • Steel: 1,285 kt • Copper: 148 kt Human capital • Attrition Rate: 8.86% • Diversity Ratio: 14.00% • Total Recordable Injury Frequency Rate (TRIFR): 1.20 Social and relationship capital • CSR beneficiaries: ~44 million • Nand Ghars built till FY 2023: 4,533 • Dividend: `101.5 per share • Contribution to the exchequer: ~`73,486 crore • Youth benefited from employment based skills training: 8,354 Natural capital • GHG Emissions: Scope 1 - 57.1 million tCO2e Scope 2 - 8.6 million tCO2e • Water recycled: 78 million m3 • HVLT utilised: 29.93 million tonnes • HVLT utilisation: 162% • Fly ash utilised: 28.25 million tonnes • Fly ash utilisation rate: 204% Our Core Value Trust Entrepreneurship Innovation Excellence Integrity Care Respect 42 43 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPPORTUNITIES A MULTI-FACETED APPROACH TO FUTURE-PROOFING T1 T2 T3 OPPORTUNITIES INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Global metal and mining industry is reshaping with rapidly- evolving externalities centred on decarbonisation, digitalisation, supply chain disruptions and market volatility. While necessitating change in the business model, these trends are expected to open up enormous potential and unleash mega opportunities. We are evaluating these trends to stay ahead of the curve and shape the future of our business. ESG as a gateway to unlocking value Mapping benefits of circular economy Multiple safety layers for greater sustainability Globally, markets and stakeholders are increasingly prioritising ESG alignment. This presents an opportunity for companies, especially those in the natural resources sector, to think holistically, embed ESG in their strategy and allocate capital in accordance with their commitments. Such a strategic approach can help the Company to stay ahead of the competition and evolving expectations, besides creating long-term value for all stakeholders. Vedanta response ESG has long been a priority at Vedanta, and we continue to make sustained investments in it. Last year, we introduced a repurposed ESG strategy – ‘Transforming for Good’, based on the pillars of communities, the planet and the workplace. We have defined various goals and roadmaps as part of our ESG strategy, including net carbon zero, water positivity and a greener business model, which are contributing to scalable results and making our business more sustainable in the long term. Continuing this journey, in FY 2023, we have proposed a more holistic theme, ‘Transforming Together’, to initiate collective action for shared value creation. Global economies are gradually transitioning from linear to circular models, and metals and mining companies have a unique opportunity to lead this change. By building new capabilities and reconfiguring business models to incorporate circular initiatives like metals reprocessing, recycling or urban mining, early adopters stand to gain preferential access to responsible sourcing markets and investors. This strategic shift can also empower market players to influence downstream, lower costs and improve ESG scores. Vedanta response Progressing to greener business models with circular economy activities is part of our ESG strategy. We are undertaking R&D to identify newer ways to convert operational by-products into raw materials for application in other industries and internal consumption. We have partnered with Runaya, an emerging manufacturing start-up offering circular economy solutions, to improve aluminium recovery from dross up to 90%, and convert the residue into raw material for the steel industry. We are executing recycled copper projects using fire-refined high-conductivity technology. We are further working with cement companies and NHAI with an aim to increase HVLT waste utilisation to 100%. Safety in mining has evolved, with four aspects – physical, psychological, cyber and cultural – becoming prerequisites for sustainable mining activities. While physical safety has improved, others are also gaining importance to ensure people feel valued and included to achieve job satisfaction. By prioritising all four aspects, natural resources companies can attract, engage, and retain diverse talent to drive their success. Vedanta response We have robust physical safety mechanisms in place supported by world-class practices, digital initiatives and regular training and campaigns. This is being further enhanced with the launch of HSE digital, an incident management module, to automate and improve working with incident records. A critical risk management (CRM) module is being rolled out covering three major risks. We are also undertaking initiatives to target other safety areas. Psychological safety is being notched up by implementing initiatives to provide greater opportunities and an improved work environment for all, along with ensuring a zero-discrimination workplace. Cultural safety is ensured through complying with local regulations, standards and cultural practices. A security community of practice has been instituted that will work towards improving the connect with local communities. 44 45 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 T4 T5 T6 T7 OPPORTUNITIES INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Building an agile business model Employer of choice as a differentiator Social impact for sustainable success Digital leadership to unleash the potential Labour markets around the world have evolved following the COVID-19 pandemic. New ways of work have become a key job requirement for employees globally, as they now seek more flexibility, purpose, complete well-being, personalised career opportunities and inclusiveness. Companies that are investing in innovative ways to fulfil these value propositions are well-positioned to become an attractive employer. This is especially true for mining and manufacturing companies, where physical presence and conventional ways of working have ruled the roost for a long time. Vedanta response Transforming the workplace is a top ESG priority at Vedanta. We have increased our focus on diversity, equity and inclusion, health and safety, besides skill development for employees. We are aligning our business with the nation’s interest and the global exigency for addressing the issue of climate change, thereby creating opportunities for employees to contribute to nation-building and the betterment of communities and even the planet. We are breaking the gender barrier by encouraging women and LGBTQ+- friendly workplaces. We are also undertaking multiple programmes that support their career growth, in addition to using digital technologies to enrich their experiences. Metal and mining companies depend on supply chains for various input raw materials to enable production, processing and services for daily operations. Supply chain security is therefore imperative to ensure the availability of inputs at the right costs. However, under the shadow of the COVID-19 pandemic and the Russia-Ukraine conflict, there are heightened challenges due to high transportation and logistical costs, labour and material shortages and increased prices. Companies taking the initiative to fortify their supply chain by reassessing risks and implementing innovative practices and digital technologies, stand to benefit. Besides improved access to raw material supplies, these players can also unlock productivity gains to manage commodity volatility and increased costs. Such reassessment can open opportunities to sustainably reduce costs with measures like transitioning to renewable energy, innovations that make for a sustainable portfolio and implementation of strategic joint ventures for economies of scale. Vedanta response We are mitigating supply chain risks by undertaking vertical integration projects including acquiring coal mines and securing linkages to reduce import dependence. We are also strengthening inbound logistics. These efforts stand to reduce production costs. We are further undertaking periodic vendor life cycle assessments to evaluate risks at every stage, and accordingly implement necessary actions. To unlock productivity, we are focussed on achieving full capacity utilisation and improving operational efficiencies. Towards this goal, we have initiated the implementation of phase 2 digitalisation, which will make Vedanta a 100% automated and data-driven organisation. These initiatives will contribute to significant savings and productivity gains. 46 Automation, digitalisation and big data are revolutionising the way metals and mining companies operate. These methods are improving decision-making and the exploration and development of minerals with real-time information and a huge database. The ability to leverage the data using advanced technologies can help in many ways to unlock value across the mining life cycle, including better cost and asset utilisation and minimising environmental impact. Vedanta response Innovation is a key element of our strategy aimed at productivity, safety and sustainability. We are undertaking an organisation-wide digital transformation project, currently in phase-2, to become smarter and data-driven with a focus on smart operations and asset optimisation, workplace safety, logistics optimisation and enabling functions automation. Multiple tools like advanced process control, predictive analytics, asset performance monitoring and digital twin are being used towards these goals. Globally, the indigenous communities have growing expectations for greater accountability and responsibility from corporates in exchange for the social licence to operate. They seek newer ways to connect with corporate and assign responsibilities for not only contributing to the local economy but also addressing social and environmental issues. Natural resources companies, operating near these communities, have an opportunity to unlock business value and establish themselves as a socially and environmentally responsible corporate. By establishing novel ways, these players can forge a deeper connect with the communities for a better understanding of their operations. By ensuring sustained engagement with communities and aligning priorities, their needs and expectations can be identified and fulfilled. Vedanta response Vedanta is proactively bringing meaningful development in the communities where it operates with multi- dimensional efforts to address their most urgent needs. Our programmes for healthcare and hygiene, livelihood creation, women empowerment, environmental protection and child well-being and education while uplifting the community, are also enabling us to fortify our relations with them. Vedanta strives to be the preferred developer of choice in most regions of its core operations. We are embedding their welfare at the core of business decisions and continue to seek innovative ways to empower 2.5 million families with enhanced skillsets and uplift 100 million women and children. We are further strengthening our connect with them, by adhering to globally accepted human rights practices. We have also established a dedicated community of practice with defined key results areas. 47 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 STRATEGIC PRIORITIES AND UPDATE AREAS WE FOCUS ON TO DELIVER SUSTAINED VALUE Our five strategic focus areas reflect our integrated thinking that connects our purpose with our performance. These strategic areas help us leverage our strengths, take advantage of opportunities, manage risks and navigate business cycles while taking into consideration the material concerns of our heterogeneous stakeholders. here we map the progress we have made against each focus area and the way forward. STRATEGIC PRIORITIES AND UPDATE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS S1 Continued focus on world-class ESG performance We operate as a responsible business with a focus on zero harm, zero discharge and zero waste. Our revised vision is “Transforming for Good” around three focus areas transforming communities, transforming the planet, and transforming the workplace. Through these focus areas, we work towards generating positive value for stakeholders and minimising the impact on the environment FY 2023 Update • Total Nand Ghar in FY 2023 – 4,533 • Skill-based training for 5,400 individuals • GHG emissions increased by 4.6% YoY • Water positivity ratio 0.62 • 162% HVLT waste utilisation • 13 Fatalities • LTIFR - 0.52 • TRIFR - 1.20 • Women employees - 14.0% • Women in leadership positions - 9% • ESG rating improvement in MSCI, DJSI, Sustainalytics and CDP water Vision Transforming Communities Aim 1: Responsible business decisions based around community welfare Aim 2: Empowering over 2.5 million families with enhanced skillsets Aim 3: Uplifting over 100 million women and children through Education, Nutrition, Healthcare, and Welfare Transforming the Planet Aim 4: Net-carbon neutrality by 2050 or sooner Aim 5: Achieving net water positivity by 2030 Aim 6: Innovating for a greener business model Transforming the Workplace Aim 7: Prioritising safety and health of all employees Aim 8: Promote gender parity, diversity, and inclusivity Aim 9: Adhere to global business standards of corporate governance Objectives for FY 2025 Objectives for FY 2030 • Target to enhance skillsets of ~1,600 families • ~2.5 million families with enhanced skillsets • Target to positively impact ~13,000 women • 25% absolute reduction GHG emissions vs and children through programmes in education, healthcare, nutrition • 20% reduction in metals and mining intensity • 900 MW RE RTC in operations • Investment in energy transition - `2,700 crore • Water positivity ratio - 0.83 • Legacy waste - 29.6 million tonnes • Habitat restoration - 2,300 hectares • Zero fatalities • LTIFR - 0.48 • Total women employees - 19% • Women in leadership roles - 20% • Zero governance issues FY 2021 baseline • 2.5 GW RE RTC in operations • Water positivity ratio – 0.98 • Legacy waste - 7 million tonnes • Habitat restoration - ~2,500 hectares • Zero fatalities • LTIFR - 0.15 • Total women employees - 20% • Women in leadership roles - 40% • Zero governance issues KPIs • Total Number of Nand Ghars • Metals and Mining GHG • LTIFR Risks • Skillset imparted to families • Impact of CSR programmes in education, healthcare, nutrition intensity • Annual waste utilisation • % of women employees R1 R9 R12 R13 • % of women in leadership roles • Water positivity ratio • Zero governance-related • Annual GHG emissions • Habitat restoration issues • RE power in operations • Fatalities • Annual disclosures 48 49 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 S2 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 replenish the resources that support our future growth ambitions FY 2023 Update Zinc India • Total Ore Reserves stand at 173.5 million tonnes (net of depletion of FY 2023 production of 16.7 million tonnes) at the end of FY 2023 (161.2 million tonnes at the end of FY 2022) due to heightened focus on resource- to-reserve conversion during the year. Exclusive Mineral Resource totalled 286.6 million tonnes • Combined R&R were estimated to be 460.1 million tonnes, containing 30.8 million tonnes of zinc-lead metal and 855.9 million ounces of silver • Overall mine life continues to be more than 25 years Zinc International • Combined mineral resources and ore reserves estimated at 659 million tonnes, containing 34.87 million tonnes of metal Oil & Gas • Secured 8 blocks in Discovered Small Fields (DSF)-III bid round and one block in special Coal Bed Methane (CBM) round 2021 • Exploration and appraisal wells drilled across PSC and OALP blocks • Two exploration successes in Ravva Infill drilling campaign • Drilled first shale exploration well in Rajasthan to unlock the potential in Barmer basin • Gross 2P reserves and 2C resources of 1,156 mmboe Objectives for FY 2024 Zinc India • Target generation and drill testing: Zawar, RD-SK, RA Mine • Exploration plan to enhance the mineral resource by 15 million tonnes Ore • Acquiring new potential areas through auction • Addition and upgradation of 34 million tonnes of ore (3 million tonnes metal) Oil & Gas • Exploration and appraisal drilling across the portfolio in Rajasthan, Cambay, Northeast and Offshore blocks • Ore reserves upgradation for sustained mine production for next 10 years • Shale studies and evaluation of pilot well to establish potential • Use of AI & ML and Advance Geophysics for target generation • ASP pilot project in Bhagyam and Aishwariya fields Zinc International • Execution of 40 km of drilling across greenfield and brownfield projects in RSA and Namibia • Monetisation of Bhagyam Bio- degradable zone (BDZ), Satellite fields & Tight oil fields • Infill wells across operating fields to augment reserve base Objectives for FY 2025 Zinc India • Securing new tenements for R&R growth • Addition and upgradation of 68.0 million tonnes of ore (4 million tonnes of metal) • Target generation through the Oil & Gas application of AI & ML along with advanced geophysics • Enhancement of the mineral resource by 40 million tonnes ore with contained metal of 2 million tonnes and upgrade ore reserves to 42 million tonnes, which will lead to total R&R of 500+ million tonnes with ~35 million tonnes metal Zinc International • Execution of 76 km of drilling across greenfield and brownfield projects in RSA and Namibia • Establish the resource pool around OALP blocks to have incremental development opportunities in the portfolio • Establish commercial potential of shale • Establish the full potential of ASP in Mangala Bhagyam and Aishwariya for commercial development STRATEGIC PRIORITIES AND UPDATE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Objectives for FY 2030 Zinc India • Retain existing mining leases in HZL portfolio while acquiring new potential areas through auction • Attain R&R metal of ~40 million tonnes in HZL portfolio Oil & Gas • Establish diversified R&R portfolio to support the vision of contributing to India’s 50% of domestic O&G production KPIs • Total R&R in Zinc India and Zinc International • Total 2P+2C Reserves & Resources in O&G Risks R1 R5 R9 S3 Delivering on growth opportunities We are focussed on growing our operations organically/inorganically 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. FY 2023 Update Zinc India • Total mine development increased by 4% to 110.6 km in FY 2023 • Zawar Mines has achieved highest ever MIC of 165 kt in FY 2023 • Skip handling system upgradation resulting in capacity enhancement by 32% to 110 kt/month • Rampura Agucha Mines achieved ever highest 534 kt MIC in FY 2023 • Highest-ever mined metal production 1,062 kt in FY 2023 • Highest-ever refined metal production at 1,032 kt in FY 2023 • Highest-ever silver production of 714 tonnes in FY 2023 • Successfully conducted a public hearing at Chanderiya to obtain EC for expansion of CLZS unit • Increment of 20.5% production through complete cell house revamp at Zinc Smelter Debari (ZSD) • Pantnagar Metal Plant producing green zinc using 100% renewable energy produced from hydropower • Waste management through Jarosite utilisation in the cement industry by modification in present circuits Zinc International • Significant ramp up in Gamsberg production with 208 kt zinc MIC in FY 2023 Oil & Gas • Exploration drilling ongoing across basins. Exploration success in Ravva Infill campaign • Production commenced from Jaya discovery in OALP Cambay region • Infill drilling in Bhagyam, Aishwariya, Tight Oil (ABH), Tight Gas (RDG), Satellite Field (NI) and Offshore (Ravva & Cambay) to augment reserves and mitigate natural decline • 38 wells drilled across all assets Aluminium • Ramp up of Jharsuguda facility • Commissioning of new 120 KTPA Billet line • Operationalisation of Jamkhani coal mine • Declared preferred bidder for Ghogharpalli coal block & CMDPA executed for Barra coal block • LoI issued for Sijimali bauxite block 50 51 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 STRATEGIC PRIORITIES AND UPDATE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Objectives for FY 2024 Zinc India Zinc International Aluminium Objectives for FY 2025 Zinc India • Further ramp-up of underground • Gamsberg Phase 2 project • Commissioning of 3 MTPA • Ramp-up of underground mines to • Up to 450 MW green energy • Monetisation of discoveries from sourcing in operations OALP, DSF and PSC block alumina refinery • JSG VAP expansion to 1.6 MTPA and Balco VAP expansion to 1 MTPA. To be completed by Q3 FY 2024 • Operationalise Kuraloi (A) North & operational readiness for Radhikapur West mines towards their design capacity of 1.2 MTPA • Combined paste-fill and dry tailing plant at Rajpura Dariba, which will help increase ore production from 1.5 MTPA to 2 MTPA • Migration to 100% mechanised charging at Zawar leading to improved safety, faster charging, increased pull per blast • Construction and commissioning of new ZLD plant at Agucha and Zawar • New beneficiation plant to start at RDM to increase treatment capacity from 1.1 MTPA to 1.5 MTPA • Hydraulic fill plant hook up with Mill 2 at Zawar to expedite filling at Mochia & Balaria mines and improve ore recovery • New portal commencement at Zawarmala to enhance production up to 2 MTPA • With supporting MIC flow, smelters are geared to touch approx. 1,050 - 1,075 kt • Capacity expansion through major overhauling of Roaster-3 and erection of Roaster-6 • Debottlenecking of Debari Cell house and other efficiency improvement initiatives to achieve overall FG production of 1.1 MTPA • Best-in-class new HZDA production facility (HZAPL) to cater to demand of Indian market approved by the Vedanta Board. Project includes the mining expansion from 4 MTPA to 8 MTPA and construction of new concentrator plant of 4 MTPA, taking the total capacity to 8 MTPA. MIC production will be 200 KTPA, taking the total South Africa production to >500 KTPA. Target date of completion of project is 21 months • Skorpion Refinery conversion – awaiting confirmation of power tariff to take the final decision before beginning on-ground execution in FY 2024 • Black Mountain Iron Ore project intends to recover iron ore (magnetite) from the BMM tailings on track. Best quality iron ore will be produced from the new plant with Fe grade >68%. First production is expected in August 2023 Oil & Gas • Exploration and appraisal drilling in OALP and PSC blocks to unlock resource potential • Monetisation of discoveries notified in OALP blocks • Commence ASP project execution in the Mangala field to monetise reserves • Infill well projects across producing fields to add reserves and mitigate natural decline reach 1.25 MTPA capacity Zinc International • Study on alternate access to the • Full ramp-up of Gamsberg Phase 2 portal at RAM project in FY 2025 • Commissioning of vertical conveyor at SKM to mine high-grade shaft pillar area • Skorpion Refinery conversion – Completion of conversion project expected by FY 2025 • Commence ASP project execution in the Bhagyam and Aishwariya field to monetise reserves • Commence shale monetisation • Establish secondary methods of oil recovery in offshore fields • Transition to one-third BEV deployment at RA & SK Mines • Completion of Mill 3 at Zawar to increase beneficiation capacity • Gamsberg Smelter planned to treat all zinc concentrate from current operation. Planned first production in FY 2026. First phase planned to produce 300 KTPA • Establishment of a new tailing dam at Zawar Mines Oil & Gas • Commissioning of Roaster-6 • Set up 510 KTPA Fertiliser plant in Chanderiya • Complete execution of Alkaline Surfactant Polymer (ASP) project at Mangala to deliver incremental volume Aluminium • BALCO 435 KTPA • 100% value-added product portfolio • Operationalisation of Radhikapur West Coal Block • Start of supplies from Sijimali bauxite block Objectives for FY 2030 Zinc India • Ramp-up of underground mines from 1.5 MTPA capacity • Look for new mining leases • Advocacy for opening new mining sites • Addition of one more smelter to take the overall capacity to 1.5 MTPA Zinc International • Gergarub mining and concentrator plant planned to be in production by FY 2025, delivering MIC of 100 KTPA • Gamsberg mining operations from underground to increase throughput from 8 MTPA to 9 MTPA from current processing plants • Iron Ore Phase 2: Construction of an additional plant to treat 2 MTPA of current tailings storage facility with opportunity to construct a pig iron plant Oil & Gas • Commence full field scale ASP project execution in Rajasthan field to monetise reserves • Continuation of monetisation opportunities across asset portfolio (supported by organic and inorganic strategies) Aluminium • Debottleneck Lanjigarh Refinery Capacity from 5 to 6 MTPA • Increase Jharsuguda capacity to 2 MTPA through debottlenecking & asset reliability projects • Operationalisation of all requisite coal and bauxite blocks KPIs • Volume • Revenue • ROCE • FCF post-capex • Growth capex Risks R2 R9 R12 52 53 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 S4 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 to maximise shareholder returns FY 2023 Update Objectives for FY 2024 • Free cash flow (FCF) at • Generate healthy free cash flow `18,077 crore from our operations • Net debt at `45,260 crore • Net Debt/EBITDA at 1.3x on a consolidated basis • Dividend worth `101.5/share • Disciplined capex across projects to generate healthy ROCE • Improve credit ratings Risks KPIs • FCF post-capex • Net Debt/EBITDA (Consolidated basis) • EPS (before exceptional items) • Interest cover ratio • Dividend distributed by VEDL • Reduce working capital R9 R10 R11 R13 S5 Operational excellence and cost leadership We strive for all-round operational excellence to achieve benchmark performance across our business, by debottlenecking our assets to enhance production, supported by improved digital and technology solutions. Our efforts are focussed on enhancing profitability by optimising our cost and improving realisations through prudent marketing strategies FY 2023 Update Zinc India • Record ore production of 16.7 million tonnes • Mined metal production of 1,062 kt and refined zinc-lead production of 1,032 kt • APC commissioned at all the beneficiation plants of RA • Smelters achieving designed recovery • Volume enhancement through operations of Pyro plant on Lead- Zinc mode for 7 months • To mitigate higher coal costs, our CPPs were shut down and power was procured from the grid Zinc International • BMM achieved consistent production in FY 2023 (65 kt) • Gamsberg ramped up significantly with 208 kt production in FY 2023 and several best performances in ore milled tonnes, mill throughput and plant availability • Skorpion remained under care and maintenance following geotechnical instabilities in the open pit Oil & Gas • Average gross operated production of 143 kboepd for FY 2023, down 11% YoY, owing to natural field decline • Signed 10-year extension up to 2030 for the Rajasthan block Production Sharing Contract (PSC) • Onboarded partners for end-to-end management of Operations and Maintenance (O&M) across assets with an objective to leverage expertise, introduce best-in-class practice and adopt digitalisation Aluminium • Record aluminium production at 2,291 kt, up 1% YoY • Highest ever domestic sales at 773 kt, 14% increase over previous best achieved • Alumina production at Lanjigarh refinery at 1,793 kt, down 9% YoY due to shutdown of calciners • Alumina COP up by 25% YoY due to increased rates of critical input commodities • FY 2023 CoP for aluminium at US$2,324 per tonne, up by 25% YoY, due to increase in commodity prices, majorly coal and carbon • Optimisation of gross working capital STRATEGIC PRIORITIES AND UPDATE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Objectives for FY 2024 Objectives for FY 2025 Objectives for FY 2030 Zinc India Zinc India Zinc India • Maintain cost of production between US$1,125 - US$1,175 per tonne through efficient ore hauling, higher volume and grades and higher productivity through ongoing efforts in automation and digitalisation • Maintain cost of production at a low level 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 a capacity of 250 KTPA in FY 2024 • Engineering of Dariba Lead Cellhouse to reduce cost and increase efficiency and recovery • BMM debottlenecking plant to achieve 2 million tonnes ore production levels despite low grades Zinc International • 500 KTPA production from South Africa at a low cost of production • Maintain cost of production at below US$1,000 per tonne through efficient ore hauling, higher volume & grades and higher productivity through ongoing efforts in automation and digitalisation • Elimination of waste generation by gainful utilisation and recycling • Deploy new innovation and technology for holding benchmark operation • 150 KTPA metal production from Skorpion Oil & Gas • Leverage win-win partnership models for operations through global technology leaders to achieve best-in-class operational efficiencies • Continue to operate at a low cost-base and generate free cash flow post-capex Aluminium • 100% backward and forward integration: 3 MTPA Aluminium, 6 MTPA Alumina, 100% VAP, 100% coal & bauxite security (Captive + Linkage) Oil & Gas • Increase production from existing assets through the use of leading- edge technologies, large-scale AIML (artificial intelligence and machine learning enabled base) • End-to-end output-based Operations and Maintenance (O&M) model • Continue to operate at a low cost- base and generate free cash flow post-capex Aluminium • Lower hot metal cost of production through increased domestic Alumina & captive coal consumption • Continued focus on quality, asset reliability and optimisation, digitalisation, innovation, and R&D • Restart Skorpion post-completion of geotechnical studies and feasibility completion of imported zinc oxides Oil & Gas • Manage natural decline through near infill well programme across fields • Stabilise end-to-end Operations and Maintenance (O&M) across assets with partners and deliver value accretion • Continue to operate at a low cost-base and generate free cash flow post- capex Aluminium • Highest ever production from refinery, start of alumina production from 3 MTPA refinery • Highest ever aluminium production projected at 2,280-2,350 kt • Significant reduction in aluminium production COP, unlocking potential in operational & buying efficiency • • Improve raw material security & local materialisation (bauxite & coal) Increased focus on asset integrity and optimisation, quality, innovation, and digitalisation through Centre of Excellence KPIs • EBITDA Risks • FCF post-capex R1 R3 R7 R11 • Adj. EBITDA margin • ROCE 54 55 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 RISk MANAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS RISK MANAGEMENT MANAGING RISKS AND OPPORTUNITIES AMIDST A DYNAMIC EXTERNAL ENVIRONMENT As our operations are spread globally, our businesses are exposed to a variety of risks. Our multi-layered risk management system and robust governance framework help us align our operating controls with the Group’s overarching vision and mission. This, in turn, helps us deliver on our strategic objectives. Risk Governance Framework BOARD OF DIRECTORS Audit Committee GRMC ExCo Business Unit Management Teams Enterprise risk management For our existing operations and ongoing projects, we identify risks at the individual business-level by way of a consistently applied methodology. We undertake business-level review meetings at least once every quarter to discuss risk management formally. Within the Group, every business division has created and evolved its risk matrix and developed its risk registers. The respective business divisions review the risks, changes in the nature and extent of major risks since the last assessment and control measures, and then decide on further action plans. These risks are then reviewed by the Business Management Committee. The business management teams also periodically review control measures stated in the risk matrix in order to verify their effectiveness. The CEOs of respective businesses chair these meetings, which are also attended by CXOs, senior management and the functional heads. At the business and Group level, the role of Risk Officers is to create awareness among the senior management on risks and to develop and nurture a risk-management culture within the businesses. An integral part of KRAs and KPIs of process owners is to come up with risk mitigation plans. The governance of the risk management framework is anchored with the leadership teams of individual businesses. By identifying and assessing changes in risk exposure, reviewing risk-control measures and approving remedial actions, wherever appropriate, the Audit & Risk Management Committee aids the Board in its risk management process. This Committee is supported by the Group Risk Management Committee (GRMC), which helps evaluate the design and operating effectiveness of the risk mitigation programme and control systems. This analysis discusses risks and mitigation measures, reviews the robustness of our framework at an individual business level and maps progress against actions planned for key risks by meeting at least four times annually. The GRMC, which meets every quarter, discusses key events impacting the risk profile, relevant risks and uncertainties, emerging risks and progress against planned actions. This committee comprises the Group Chief Executive Officer, Group Chief Financial Officer and Director-Management Assurance. The Group Head - Health, Safety, Environment & Sustainability are also invited to attend these meetings. The risk management framework, which is simple and consistent, provides clarity on managing and reporting risks to the Board. Our management systems, organisational structures, processes, standards and Code of Conduct and ethics together represent our internal control systems. These internal control systems govern how the Group conducts its business and manages associated risks. The Board shoulders the ultimate responsibility for the management of risks and for ensuring the effectiveness of these internal control systems. The Board’s responsibility includes a review of the Audit & Risk Management Committee’s report on the risk matrix, significant risks, and mitigating actions. A regular review is conducted of any systemic weaknesses identified and addressed by enhanced procedures to strengthen the relevant controls. Group Risk Management Framework Extern al S tr a t e g i c EVALUATE MITIGATE IDENTIFY MONITOR F i n a n cial p erational O 56 57 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Risk management is embedded in business-critical activities, functions and processes. This is also critical to deliver on the Group’s strategic objectives. The Company’s risk management framework is designed to manage, not eliminate, the risk of failure to achieve its business objectives. The framework provides reasonable, (not absolute), assurance against material misstatement or loss. The key considerations of our decision-making are materiality and risk tolerance. Every manager and business leader is responsible for identifying and managing risks. The key risk governance and oversight committees in the Group are as below: • The Board is supported by the Committee of Directors (COD), comprising the Vice Chairman and Group CFO, by considering, reviewing and approving the borrowing and investment-related proposals within the overall limits approved by the Board. The CEO, Business CFOs, Group Head Treasury and BU Treasury Heads, based on the agenda, are invited to these committee meetings • The Audit and Risk Management Committee, along with Sustainability Committee, review sustainability- related risks • Various group-level ManCom such as Procurement ManCom, Sustainability - HSE ManCom, and CSR ManCom work on identifying specific risks and working out mitigation plans Control Room at VZI Every business has developed its risk matrix, which is reviewed by the respective management committee/ executive committee, chaired by its CEO. In addition, depending on the size of its operations and the number of SBUs/locations, every business has developed its risk register. Across these risk registers, the risks are aggregated and evaluated, the Group’s principal risks are identified, and an adequate response mechanism is formulated. It is this element which 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. Recommending improvements in the control environment and reviewing compliance with our philosophy, policies and procedures are the key responsibilities of MAS. It is from the risk perspective that the planning of internal audits is approached. Inputs are sought from the senior management, business teams and members of the Audit Committee and reference is made to the risk matrix while preparing the internal audit plan. The past audit experience, financial analysis and prevailing economic and business environment are also referred to in the process. In the section that follows, the order in which risks appear does not necessarily reflect the likelihood of occurrence or the relative magnitude of their impact on Vedanta’s businesses. For each risk, the risk direction is reviewed based on the events, economic conditions, changes in the business environment and regulatory changes during the year. The Company’s risk management framework has been formulated to help the organisation meet its objectives. However, there is no guarantee that the Group’s risk management activities will mitigate these risks or prevent them, or other risks, from occurring. With the assistance of the management, the Board conducts periodic and robust assessments of principal risks and uncertainties of the Group, while also testing the financial plans associated with each. RISk MANAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Sustainability Risks R1 Health, safety and environment (HSE) Impact: The resources sector is subject to extensive health, safety and environmental laws, regulations and standards. Evolving requirements and stakeholder expectations could result in increased costs or litigation or threaten the viability of operations in extreme cases. Large-scale environmental damage is amongst the top 10 risks, as per the World Economic Forum’s Global Risk Report 2023 for the next 2 years, which can lead to global policy changes Emissions and climate change Climate change mitigation and adaption failure is ranked amongst the top 10 risks as per World Economic Forum’s Global Risk Report 2023 over the next 2 years to 10 years. 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 to increase the cost of fossil fuels, imposition of levies for emissions in excess of certain permitted levels and increase 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 Mitigation • 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 the key focus areas • Policies and standards are in place to mitigate and minimise any HSE-related occurrences. Safety standards are issued or continue to be issued to reduce the risk level in high-risk areas. Structured monitoring, a review mechanism and a 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 • A Vedanta Critical Risk Management • The carbon forum has been re- programme will be launched to identify critical risk controls and to measure, monitor and report control effectiveness • The Company has implemented a set of standards to align its sustainability framework with international practices. A structured sustainability assurance programme continues to operate in the business divisions covering environment, health, safety, community relations and human rights aspects. This 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 constituted with updated terms of reference and representation from all businesses. Its mandate is to develop and recommend the carbon agenda for the Group to the Executive Committee (ExCo) and Board • Enhanced focus on renewable power obligations • The Group companies are actively working on reducing the intensity of GHG emissions in our operations • A task force team is formulated to assess end-to-end operational requirements for the FGD plant. We continue to engage with various stakeholders on the matter • The process to improve learning from incidents is currently being improved to reduce the re-occurrence of similar incidents and effective risk management, safety KPIs have been built into the performance management of all employees 58 59 Decrease in risk profile Same as last year Increase in risk profile VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 RISk MANAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS R2 Managing relationship with stakeholders Operational risks Impact: The continued success of our existing operations and future projects is partly dependent on the broad support and healthy relationships with our local communities. Failure to identify and manage local concerns and expectations can have a negative impact on relations and, therefore, can affect the organisation's reputation and social licence to operate and grow R4 Challenges in Aluminium and Power business Mitigation • Our CSR approach to community programmes are governed by the following key considerations relating to 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 (SDGs) • 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 • A group-level CSR management committee meets every fortnight to review and decide on strategic CSR Planning, its execution and communication • Business Executive Committee (ExCo) factor in these inputs, and then decide upon the focus areas of CSR and budgets, in alignment with strategic business priorities potentially negative operational impact and risks through responsible behaviour – that is, acting transparently and ethically, promoting dialogue and complying with commitments to stakeholders • All BUs follow well-laid processes for recording and resolving all community and external grievances as well as standard processes for social investment • 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 • Stakeholder engagement is driven basis the stakeholder engagement plan at each BU by the CSR and cross-functional teams. Regular social and environmental risk assessment discussions happen 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 Impact: Our projects have been completed and may be subject to a number of challenges during operationalisation. These may also include challenges around sourcing raw materials and infrastructure-related aspects and concerns around ash utilisation/evacuation Mitigation • Despite the fluctuation in LME along with pressure on cost, best-ever production outcomes have resulted in a sustained performance in the Aluminium sector • Despite improvement in costs QoQ, along with improved raw material security, alumina refinery expansion from 2 MTPA to 5 MTPA is being pursued • Tapping of new coal mines and sourcing of bauxite have been beneficial for plant operations • Continue to pursue new coal linkages to ensure coal security • Inbound and outbound supply chains 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 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 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 production, operational excellence and securing key raw material linkages • Talwandi Saboo (TSPL) power plant matters are being addressed structurally by a competent team R3 Tailings dam stability R5 Discovery risk Impact: The release of waste material can lead 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 and is a continuous risk. Hence, it receives the highest priority Impact: Increased production rates from our growth-oriented operations create demand for exploration and prospecting initiatives so that reserves and resources can be replaced at a pace faster than depletion. 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 and gas reserves, and geological, technical, and economic assumptions that are valid at the time of estimation, may change significantly when new information becomes available Mitigation • The Risk Management Committee included a tailings dam on the Group risk register with a requirement for an annual internal review and a three-yearly external review • Operation of the tailings dam is executed by suitably experienced personnel within the businesses • Third party has been engaged to review tailings dam operations, including the improvement opportunities and remedial works required in addition to the application of Operational Maintenance and Surveillance (OMS) manuals in all operations. This is an oversight role in addition to the technical design and guidance arranged by respective 60 BUs. Technical guidelines are also being developed • Management standards implemented with business involvement Mitigation • Vedanta Tailings Management Standard • BUs are expected to ensure • Exploration Executive Committee • Strategic priority is to add to has been reviewed, augmented and reissued, including an annual, independent review of every dam and a half-yearly CEO sign-off that dams continue to be managed within the design parameters and in accordance with the last surveillance audit. Move towards dry tailings facilities has commenced • Those responsible for dam management receive training from third parties and will receive ongoing support and coaching from international consultants ongoing management of all tailings facilities with ExCo oversight with independent third-party assessment on the YoY implementation status of Golder recommendations • 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. The UNEP/ICMM Global Tailings Standard was incorporated into Vedanta Standard during FY 2021 has been established to develop and implement strategy and review projects group-wide • Dedicated exploration cell with a continuous focus on enhancing exploration capabilities • Appropriate organisation and adequate financial allocation in place for the exploration our reserves and resources by extending resources at a faster rate than we deplete them, through continuous focus on the drilling and exploration programme • Continue to make applications for new exploration tenements in countries in which we operate under their respective legislative regimes • Exploration-related systems are being strengthened and standardised across the Group, and new technologies are being utilised wherever appropriate • International technical experts and agencies are working closely with our exploration teams to enhance our capabilities Decrease in risk profile Same as last year Increase in risk profile 61 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 RISk MANAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS R6 Breaches in IT/cybersecurity R8 Cairn-related challenges Impact: 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 impact business operations Impact: Cairn India has 70% participating interest in Rajasthan Block, the production sharing contract (PSC) of which was valid till 2020. The Government of India has granted its approval for a 10-year extension at less favourable terms, pursuant to its policy for extension of Pre-New Exploration and Licensing Policy (NELP) Exploration Blocks, subject to certain conditions. Ramp-up of production compared with what was envisaged may impact profitability Mitigation • 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 • RCM (Risk Control Matrix) and IT General Controls (ITGC) under SOx framework are performed as per defined frequency and effectiveness • Structured and well-defined cyber security awareness program to cover all classes of stakeholders, including employees and the leadership mandatory employee training on cybersecurity awareness • Special focus to strengthen the security landscape of plant technical systems (PTS) through various initiatives • Adoption of various international standards related to information security, disaster recovery and business continuity management, IT risk management and setting up of internal IT processes and practices in line with these standards • Work towards ensuring strict adherence to IT-related SOPs to improve operating effectiveness, continuous focus on • Periodic assessment of entire IT system landscapes and governance framework from vulnerability and penetration perspective, undertaken by reputed expert agencies and addressing the identified observations in a time-bound manner • Structured and well-defined cyber security awareness programme in place to cover all classes of stakeholders from employees to leadership and will include Board members too Mitigation • Rajasthan PSC extension for 10 years from 15 May 2020 to 14 May 2030 has been executed by the parties to the PSC on 27 October 2022 • The applicability of the Pre-NELP Extension Policy to the RJ Block is currently sub judice • Focussed efforts on managing production decline through: – Infill wells across producing fields – Enhanced recovery projects in key producing fields – Exploration drilling across the portfolio to add resources • Project Management Committee and Project Operating Committee were set up to provide support to the outsourcing partner and address issues on time to enable better quality control and timely execution of growth projects Compliance risks R9 Regulatory and legal risk R7 Loss of assets or profit due to natural calamities Impact: 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/or restrictions such as the imposition or increase in royalties or taxation rates, export duty, impact on mining rights/bans, and changes in legislation. Impact: 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. Mitigation Mitigation • Vedanta has taken an appropriate Group insurance cover to mitigate this risk and an Insurance Council is in place to monitor the adequacy of coverage and status of claims • An external agency reviews the risk portfolio and adequacy of this cover and assists us in reviewing our insurance portfolio covered by insurance could have an adverse effect on the Group's business • We engage underwriters from reputed institutions to underwrite our risk • Established mechanisms of periodic insurance review in place at all entities. However, any occurrence not fully • Continuous monitoring and periodic review of security and insurance function • Continue to focus on capability building within the Group • The Group and its business divisions • SOx-compliant subsidiaries • SOPs implemented across our monitor regulatory developments on an ongoing basis • Business-level teams identify and meet regulatory obligations and respond to emerging requirements • Common compliance monitoring system being implemented in Group companies. Legal requirements and a responsible person for compliance have been mapped in the system • Focus on communicating our • Legal counsels within the Group responsible mining credentials through representations to government and industry associations continue to work on strengthening the compliance and governance framework and the resolution of legal disputes • Continue to demonstrate the Group's commitment to sustainability through proactive environmental, safety and CSR practices. Ongoing engagement with local community/media/NGOs • A competent in-house legal organisation is in place at all the businesses; these legal teams have been strengthened with the induction of senior legal professionals across all Group companies businesses for compliance monitoring • Greater focus on timely closure of key non-compliances • Contract management framework was strengthened with the issue of boilerplate clauses across the Group, which will form a part of all contracts. All key contract types have also been standardised • Framework for monitoring performance against anti-bribery and corruption guidelines is in place 62 63 Decrease in risk profile Same as last year Increase in risk profile VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 RISk MANAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS R10 Tax related matters R12 Major project delivery Impact: Our businesses are in a tax regime and changes in any tax structure, or any tax-related litigation may impact our profitability. Impact: Shortfall in the achievement of stated objectives of expansion projects, leading to challenges in achieving stated business milestones – existing and new growth projects. Mitigation • Tax Council reviews all key tax litigations • Robust organisation in place at the and provides advice to the Group • Continue to engage with authorities concerned on tax matters business and Group-level to handle tax- related matters • Continue to consult and obtain opinions from reputable tax consulting firms on major tax matters to mitigate tax risks on the Group and its subsidiaries • Strengthened governance in foreign subsidiaries Financial risks R11 Price (metal, oil, ore, power, others), currency and interest rate volatility Impact: 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 flow 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. Mitigation • The Group’s well-diversified portfolio acts as a hedge against fluctuations in commodities and delivers cashflow 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. Its policy is 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 course of action to business divisions • Seek to mitigate the impact of short-term currency movements on 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 • Any sharp movements in commodity prices are discussed at the Group commercial and marketing Mancoms and suitable actions are discussed, deliberated and implemented Mitigation • Project management organisation cell set up at a Group level with the objective of monitoring growth project progress, extracting useful insights through market research, leveraging data analytics and benchmarking with best- in-class projects • Empowered organisation structure in place to drive growth projects; project management systems streamlined to ensure full accountability and value stream mapping • Strong focus on safety aspects in the project • Geo-technical audits 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 business plan and growth targets • Standard specifications and SOPs were developed for all operations to avoid variability; reputed contractors engaged to ensure the completion of the project on indicated timelines • Use of best-in-class technology and equipment to develop mines, ensuring the highest level of productivity and safety. Digitisation 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 implemented to check the safety and quality of services/design/actual physical work • Use of a reputed international agency for Geotech modelling and technical support, wherever required R13 Access to capital Impact: The Group may be unable 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 operations in any business, affecting revenue and free cash flow generation, may cause stress on the Company's ability to raise financing at competitive terms. Mitigation • Focussed team continues to work on proactive refinancing initiatives with an objective to contain cost and extend tenure • 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 the 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 maintained ratings at “AA” with the outlook revised to negative from stable 64 65 Decrease in risk profile Same as last year Increase in risk profile VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 CYBERSECURITY EMPOWERING CYBERSECURITY IN A CONNECTED WORLD In the age of digitisation and online working environments, businesses are faced with significant technological challenges due to the dual demands of increasing dependence on remote work and faster digitalisation of information. Widespread cybercrime and cyber insecurity are now one among the top 10 global risks identified by the World Economic Forum. Cybersecurity is also one of Vedanta's most significant business risks due to the growth of cyber-related threats such as phishing attacks and ransomware. Vedanta's consistent investment in technology and stringent processes has thwarted cyber threats and prevented any major disruption to our business. The Company remains committed to maintaining cybersecurity to protect its technology, confidential information, data integrity, and business continuity. Robust Leadership & Governance Structure The cybersecurity governance is overseen by the Audit and Risk Committee of the Board, while the Vedanta Executive Committee (Vedanta ExCo), chaired by the CEO and leaders from all business functions, is responsible for cybersecurity. The Chief Information Officer (CIO) sets the cybersecurity vision and strategy and is accountable to Vedanta ExCo and the Board's Audit and Risk Committee. The Chief Security Officer (CSO) drives the cybersecurity programs to achieve business objectives, and the Chief Information Security Officer (CISO) ensures their operational success. Moreover, the CSO is responsible for physical security, including information assets. Information Security Management Framework Vedanta has established a robust Information Security Management Framework, which includes Policies, Standard Operating Procedures (SOP) and Technology Standards. The Information Security Framework is reviewed annually by the Vedanta Information security team. Vedanta’s Oil & Gas, Zinc-Lead-Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys and Power received Certification ISO 27001 (Information Security), some of the businesses received ISO 22301 (DR & BCP), ISO 31000 (Risk Management) and ISO 27701 (Privacy Management). The overall Information Security Framework & Governance layer adopted by Vedanta is presented below: Vedanta Information Security Framework & Governance Requirements Vedanta Cyber Assurance Program Management Security Standards Law, Acts & Compliances Risk Register Best Practices Business Objectives & Risk Control Matrix Security Threats Intelligence Vedanta Cybersecurity Framework 66 Policy Process Measurement COBIT 5 ISO 27001 ISO 22301 ISO 197701 ISO 31000 ISO 27701 IEC 62443 People Cybersecurity Information Security Process Tools & Technology Training & Development VAPT SOX Audit Internal Audits ISO Audits Data Governance Audits Phishing Simulation Define Execute Measure Vedanta Audit Board Vedanta Board Vedanta COE Management Assurance Steering Committee Auditors, Risk & Compliance Team Insurance Program Incident Response & RCA CYBERSECURITY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Highlights Vedanta implemented ISO 22301 Disaster Recovery & Business Continuity Management Framework to prevent any interruption in operations of the Company’s critical IT systems Vulnerability Assessment (VA) and Penetration Testing (PT) are carried out twice in a year with a combination of various automated tools and manual testing as appropriated Surveillance Audit conducted under ISO 27001, ISO 22301, ISO 31000 and ISO 27701 Framework Requirements (Through Surveillance Audit Partner) Phishing simulations are carried out quarterly for 100% of users, assigning a cyber awareness score based on the results, and include a variety of simulations like General Phishing, Spear Phishing, Whaling, Smishing, and Vishing In addition, Vedanta has strong information security policy that aligns with various management frameworks related to information security, risk management, disaster recovery, business continuity management, and data privacy. This policy has been adopted by all business units to ensure compliance with the Vedanta Information Security Policy. Policies adopted by the Company align with national regulations including Information Rules, 2011 and the Information Technology Act, 2000. Vedanta’s cyber programme focusses on the following seven strategic areas to enhance cybersecurity capabilities: • Detailed risk management for the entire business • Annual vulnerability assessment as per the vulnerability management policy • • • • • Tracking information security administration as a part of CIO’s review Management of cyber & data incidents through SIEM (Security Incident and Event Management) services, monitoring data movement through DLP (Data Leakage Prevention) tools Disaster Recovery & Business Continuity Management Framework to prevent any disruption to critical IT systems Consequence management in case of non-compliance Incidence Response & Emergency Preparedness Plan to respond to cybersecurity crisis Cybersecurity Awareness Planning & Training Vedanta's Cybersecurity Awareness Plan educates employees on IT and OT security and data governance, with a focus on sensitising them to prevailing threats and risks and helping them learn about mitigation aspects. The programme is framed to emphasise the importance of collectively ensuring cybersecurity to protect the organisation from cybercrimes. Performance Performance evaluation of Information Security is carried out based on People, Process and Technology aspects. Our workforce has defined KRAs/KPIs aligned with Information Security Goals as part of their Annual Performance Management process, and the performance is measured against these goals. Escalation Process In FY 2022-23, Vedanta experienced zero cybersecurity breaches. Cyber incidents reported through SIEM (Security Incident and Event Management) and by End Users are evaluated by BU CISO. Data incidents reported through DLP and by End Users are evaluated by BU DGPO/BU CISO and are further reviewed by BU CIO. Based on the criticality and impact, these observations and incidents are reported and discussed in following forums for direction and support to address them. • BU ExCo • Vedanta Group ExCo • BU Audit & Risk Committee • Vedanta Audit & Risk Committee Compliance to observations as per agreed due dates is reported on a quarterly basis. 67 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 BOARD OF DIRECTORS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Nand Ghar which aims to ensure that seven crore children and two crore women get opportunities even in the remotest parts of the country. Making significant progress in the mission to combat malnutrition and achieve zero hunger, Priya also drives the Run for Zero Hunger movement with the Vedanta Delhi Half Marathon and Vedanta Pink City Half Marathon. Following her love for animals, Priya founded YODA - Youth Organisation in Defence of Animals, a Mumbai-based NGO, in 2010. She is also leading India's first state-of-the-art animal welfare project TACO (The Animal Care Organization) under Anil Agarwal Foundation which will bring leading academicians, medical professionals, and the community together to create a more holistic approach to animal care in India. of UTI Asset Management Company Pvt. Ltd. He has also worked for the Department of Economic Affairs under the Ministry of Finance, Government of India. Ms. Priya Agarwal Hebbar is a Non-Executive Director at Vedanta Limited and the Chairperson of Hindustan Zinc Limited. She is also the Director of the Anil Agarwal Foundation. She holds a Bachelor’s degree in Psychology and Business Management from the University of Warwick in the UK. Priya anchors the ESG, Investor Relations, Corporate Communications, Human Resources, Digital and Social Impact for Vedanta Limited. She is deeply passionate about the environment and sustainability and has been playing an instrumental role in the ESG transformation at Vedanta Limited. With focussed action plans on decarbonisation, water positivity, workplace safety, community welfare and workforce diversity, Priya’s leadership is driving Vedanta Limited on a transformative journey to emerge as an industry leader in ESG. Under her leadership, Vedanta has modernised over 4,000 anganwadis across the country through its flagship project Mr. Upendra Kumar Sinha served as the Chairman of the 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 various Acts and enhanced corporate governance and disclosure norms. Prior to his role in SEBI, he was the Chairman & MD Ms. Priya Agarwal Hebbar Non-Executive Non-Independent Director Mr. Upendra Kumar Sinha Non-Executive Independent Director BOARD OF DIRECTORS Mr. Anil Agarwal Non-Executive Chairman Mr. Navin Agarwal Executive Vice Chairman Mr Anil Agarwal is the Non-Executive Chairman of Vedanta Limited and founder of Vedanta Group. Since March 2005, he has been the Executive Chairman of Vedanta Resources. With his four decades of entrepreneurial experience, he has helped to shape the strategic vision of the Company and contribute to the larger purpose of uplifting communities. Under his leadership, Vedanta Limited has grown from an Indian domestic miner to a global natural resources group, with a world- class portfolio of large and diversified assets in oil and gas, zinc, silver, aluminium, copper, nickel, iron and steel and power that are capable of generating strong cash flows. Mr. Agarwal’s vision is to empower the nation by achieving self-sufficiency in natural resources. Over the years, he has invested over US$35 billion in the development of the natural resources sector in India and has been a strong advocate for the growth of the MSME sector and start-ups in India. Mr. Agarwal believes businesses must give back to society and help them prosper and hence, has pledged 75% of Mr. Navin Agarwal has been associated with the Vedanta Group since its inception and has four decades of strategic executive experience. Under his stewardship, Vedanta Limited has achieved a 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. He has been spearheading the Company’s strategy through a mix of organic growth and value-accretive 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, digitalisation and global best practices. He drives Vedanta’s unwavering commitment to uphold the highest standards of corporate governance. his wealth for social good. He has signed The Giving Pledge, a movement of global philanthropists who have committed to giving away a majority of their wealth towards philanthropic and charitable causes. With a view to promoting the well- being of communities with a special focus on women and child development, he started his dream project Nand Ghar to develop model anganwadis across India that are focussed on eradicating child malnutrition, providing education, healthcare, and empowering women with skill development. As part of his commitment to nurturing the youth and grassroots talent through the promotion of sports, Mr. Agarwal has contributed by developing state-of-the-art sports infrastructure in India. The Anil Agarwal Foundation is committed to empowering communities, transforming lives and facilitating in nation-building through sustainable and inclusive growth. The Foundation has teamed up with the Bill & Melinda Gates Foundation to improve health and nutritional outcomes. His vision is to gradually unlock the enormous potential of the natural resources sector and make it an engine of growth for India. In recognition of his exceptional service in the fields of business and entrepreneurship and his contribution to the natural resources sector, he was conferred with 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 advancing the inclusive growth of communities as well as the promotion of culture and sports at all levels. A graduate of commerce from Sydenham College, Mumbai, he has completed the President Management Programme at Harvard University. 68 69 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Mr. Dindayal Jalan Non-Executive Independent Director Mr. Sunil Duggal Whole-Time Director & Chief Executive Officer Mr. Dindayal Jalan is a Chartered Accountant and has over 40 years of extensive experience in managing business and finance in large metal and 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 Limited. Mr. Jalan started his corporate journey in 1978 with Aditya Birla Group’s Hindustan Gas & Industries Limited as a management trainee and subsequently rose to 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 and was instrumental in setting up and operationalising the greenfield copper smelting project as Mr. Sunil Duggal was appointed as the Interim CEO of Vedanta Limited, effective 6 April 2020, and subsequently CEO, effective 1 August 2020, and Whole-Time Director from 25 April 2021. Prior to this, he was the CEO & Whole-Time Director of Hindustan Zinc Limited (HZL), a subsidiary of the Company from 2015 to July 2020. He had been associated with HZL since 2010 as Executive Director and thereafter, became the Chief Operating Officer in the year 2012 and Deputy CEO in 2014. He is a result- oriented professional with over 37 years of experience in 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 business, evaluate opportunities and risks, and successfully drive efficiency and productivity whilst reducing costs and inefficiencies and delivering innovative solutions to challenges. His thrust on adopting best-in-class mining a robust operating business. He was responsible for raising finance, building the finance team, putting in place strong business processes and systems, negotiating stable sources for long-term raw material supplies, setting up the commodity hedging desk and building a robust marketing organisation. In 2001, he moved to Sterlite Industries (now Vedanta Limited) as CEO of its copper mining business in Australia for 18 months. He led the turnaround of the business by working in a multicultural environment. In 2003, he was appointed the CFO of Sterlite Industries. In 2005, he was elevated to the position of CFO of Vedanta Resources Plc., an 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, and developing a robust Finance team. He closely worked with the CEO to drive business performance. and smelting techniques, state-of-the-art, environment-friendly technologies and mechanisation, automation and digitalisation of operational activities has enhanced Vedanta’s industry leadership. Born and brought up in Amritsar, he has an Electrical Engineering degree from Thapar Institute of Engineering & Technology, Patiala. He is an Alumnus of IMD, Lausanne Switzerland and IIM Calcutta and worked at Ambuja Cement before joining Vedanta Limited. He is serving as Vice Chairman- International Zinc Association and President - Indian Lead Zinc Development Association. Recently, he was appointed as the Chair - Confederation of Indian Industry (CII) National Committee on Mining, Chair - FIMI Non-Ferrous Metals Committee, Co-Chair - FICCI Non-Ferrous Metals Committee-2018 and Chairman - Skill Council for Mining Sector, India. BOARD OF DIRECTORS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Mr. Akhilesh Joshi was appointed to the Board with effect from 1 July 2021. He completed his Bachelor’s in Mining from MBM Engineering College, Jodhpur. He holds a Diploma in Economic Evaluation of Mining Projects from the Paris School of Mines. Mr. Joshi has over 44 years of professional experience in mining and has an exemplary track record of nurturing one of the world’s largest integrated zinc, lead and silver-producing organisation. His emphasis on a high-performance culture brings out the best in employees, propelling meticulous execution and delivering extraordinary results. Mr. Joshi served as Chief of Mining Operations at Rampura Agucha Mines and successfully executed mine planning and production ramp-up, which positioned it as the world’s #1 zinc-lead mine for eight consecutive years since 2009. He was the CEO of Hindustan Zinc Limited (HZL) from 2012 to 2015 and was also appointed the President of the Global Zinc Business. From 2004-2005, he provided guidance to gold mines in Armenia. He worked closely with companies such as SRK/AMC etc. for benchmarking and mining methodology evaluations. Currently, he Ms. Padmini Sekhsaria is a Principal at the Narotam Sekhsaria Family Office, where she leads several investment and philanthropic activities. She oversees businesses in technology, education, FMCG, agriculture, construction materials, commodities, and financial services, that directly employ over 3,600 employees. Her experience in youth education, health and vocational skilling spans over 20 years. She started the Salaam Bombay Foundation in 2002, one of the largest school-based preventive health programmes in India. She also heads the Narotam Sekhsaria Foundation, a family philanthropy that is engaged in health, education, and livelihood programmes with interventions in rural serves on the Boards of HZL, Rajasthan State Mines & Minerals Limited, Ferro Alloys Corporation Limited and FACOR Power Limited. Mr. Joshi is a senior executive of global repute with a proven track record. In his long global career, he has been recognised with numerous awards including the National Mineral Award by the Government of India for his outstanding contribution to mining technology in 2006, Business Today CEO Award, HZL Gold Medal Award by the Indian Institute of Metals. In 2012, he was also felicitated by the Hon’ble Finance Minister, Pranab Mukherjee, for his excellent contribution to the mining sector. He is also a member of the Institution of Engineers (India), Mining Engineers Association of India (MEAI), Mining Geological & Metallurgical Institute of India (MGMI) and Indian Institute of Mineral Engineers (IIME). He is the co-author of a book titled ‘Blast Design Theory and Practice’ and has written various technical papers in relation to exploration and mining since 1995. and urban areas focussed on community health, preventive and promotive healthcare, capacity building, policy advocacy and systemic change. She serves on the Boards of various non-profit organisations including Ambuja Cement Foundation, Harvard T.H. Chan School of Public Health- India Centre, Sherborne Foundation in the UK, Vassar College and the India Youth Fund in New York. She is an alumnus of the London School of Economics and holds a postgraduate degree in Financial Economics. Mr. Akhilesh Joshi Non-Executive Independent Director Ms. Padmini Sekhsaria Non-Executive Independent Director 70 71 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 EXECUTIVE COMMITTEE Mr. Sunil Duggal Whole-Time Director & Group Chief Executive Officer Ms. Sonal Shrivastava Chief Financial Officer Ms. Madhu Srivastava Chief human Resources Officer (CHRO) Mr. Sunil Duggal was appointed as the Interim CEO of Vedanta Limited, effective 6 April 2020, and subsequently CEO, effective 1 August 2020, and Whole-Time Director from 25 April 2021. Prior to this, he was the CEO & Whole-Time Director of Hindustan Zinc Limited (HZL), a subsidiary of the Company from 2015 to July 2020. He had been associated with HZL since 2010 as Executive Director and thereafter, became the Chief Operating Officer in the Sonal Shrivastava was appointed as Chief Financial Officer at Vedanta effective June 2023. Sonal brings more than 26 years of financial leadership across sectors as the Company continues its next phase of growth. Sonal joins Vedanta from Holcim Group where she worked as the CFO for Asia Pacific, Middle East & Africa operations. In her role as CFO, Sonal will spearhead the Group's financial strategy and be responsible for accounting, tax, treasury, investor relations, financial planning and Ms. Madhu Srivastava was appointed as the CHRO of Vedanta in December 2018. She has been associated with Vedanta since 2012 including as CHRO of Cairn – Oil & Gas business and leading Talent Acquisition and Diversity and Inclusion functions for Vedanta. She is a strategic leader and an outcome-driven professional, known for taking and implementing tough decisions with grace. Ms. Srivastava has over 23 years of rich and diverse experiences across human resources (HR), sales, marketing and operations spanning industries like FMCG, Telecom, Banking and Natural Resources. She started her career in 1999 with Godrej, handling sales for Gujarat and Maharashtra and later moved to Corporate Sales and Marketing. She then worked with GE Capital year 2012 and Deputy CEO in 2014. He is a result-oriented professional with over 37 years of experience in leading high‐ performance teams and more than 20+ years in leadership positions. Refer to page 70 to read his detailed profile analytics, while driving digitalisation and profitability. She will work with all internal and external stakeholders to develop and deliver business goals. Sonal holds a Bachelor's degree in Chemical Engineering from BIT, Sindri and a Master's degree in Business Administration from the Jamnalal Bajaj Institute of Management Studies. and Reliance in Operations and Marketing. She started her HR journey in 2006 as Assistant Vice President, Talent Acquisition at Genpact and then led recruitments for Citibank India operations as Vice President, Human Resources. She has been bestowed with ‘Top HR Thought Leader’ and ‘Great Manager Awards’ by Economic Times, and ‘Top HR Leader Award’ by HRD Congress. She led the organisation to win HR accolades like ‘Kincentric Best Employer’ and ‘Great Place to Work’ for progressive talent management, employee engagement and performance management frameworks. Ms. Srivastava is an alumna of IIM Ahmedabad with a postgraduate Diploma in Marketing and Sales. ExECUTIVE COMMITTEE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Arun Misra has been appointed as Chief Executive Officer, HZL effective 01 August 2020 and was elevated to the role of Chief Executive Officer, Zinc Business in June 2022. Prior to this, he held the position of Deputy Chief Executive Officer, HZL since joining the Company on 20 November 2019. In his previous role, he was associated with TATA Steel Limited as Vice President of Mining Division. He has 34 years of rich and diverse experience in leading various strategic positions within TATA Steel. Arun Misra has a bachelor’s degree in electrical engineering from IIT Kharagpur, a diploma in mining and beneficiation from University of New South Wales, Sydney and a diploma in general management from CEDEP, France. Arun Misra has been elected as Chairman of International Zinc Association in January 2022, first ever Indian and Asian to be elected to this position. Mr. Arun Misra Chief Executive Officer (CEO), Zinc Business (hZL) Rahul Sharma is the Deputy Chief Executive Officer of Vedanta’s Aluminium Business since 24 November 2020. Prior to his current role, he was the Chief Executive Officer of the Alumina Business from April 2019 and Director — Corporate Strategy (Aluminium and Power). Mr. Rahul Sharma has diverse experience of over 25 years, and he has been with the Group since 1998. During this tenure he has held key leadership positions at Vedanta Limited and Sterlite Technologies Ltd. where he was Chief Marketing Officer (Domestic and International) and Business Head of System Integration Business. Mr. Sharma is also the office 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 Non-Ferrous Metal Committee. For his exemplary leadership, he has been conferred with various awards and accolades including ‘The Extraordinaire – Business Leader 2020-21’ at the Brand Vision Summit 2022, ‘People's CEO of the year award 2020' by People First Limited and ‘Business Leader of the year award' at International Conference on Non-Ferrous Metals-2017 for his contribution to India’s Metal and Mining industry. Mr. Rahul Sharma is an alumnus of IIM–Ahmedabad Executive General Management program, has an MBA in Marketing and a B.E. in Electronics and Communication. Mr. Rahul Sharma Deputy Chief Executive Officer, Aluminium Business Nick Walker was appointed as CEO, Cairn Oil & Gas in January 2023. He is steering Cairn’s growth strategy towards producing 50% of India’s oil & gas needs and adding Reserves and Resources to achieve Energy Aatma-Nirbharta, whilst maintaining the highest level of Safety, Sustainability and Governance standards. He has over 30 years of rich, global experience in technical, commercial, and executive leadership roles. Prior to joining Vedanta, he has worked with BP, Talisman Energy, Africa Mr. Nick Walker Chief Executive Officer, Cairn Oil & Gas Oil and Lundin Energy. He holds degrees in Mining Engineering from Imperial College London, Computer Science from University College London as well as an MBA from City University Business School, London. 72 73 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ExECUTIVE COMMITTEE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS to the legal eco system in India and the world. Dr. Gemawat is a postgraduate and doctorate in law, a qualified Chartered Accountant, a Cost Accountant, and a Chartered Secretary from India & the UK. Dr. Sanjeev Gemawat was appointed as the General Counsel of Vedanta in June 2022. He brings with him three decades of rich experience in wide ranging industries like manufacturing, automobile, real estate and hospitality. Dr. Gemawat has been recognised among the Top General Counsels of India in various prestigious General Counsel lists. He is one of the founders of the GCAI and has been inducted in to the 'Global Hall of Fame' for his contribution Mr. Sanjeev Gemawat General Counsel Sunil Gupta was appointed as the Chief Executive Officer of Jharsuguda, effective from 31 January 2022. In this role, Mr. Gupta has the critical responsibility of providing leadership to the Aluminium business at Jharsuguda, with a strong focus on HSE, ESG, volume, cost, organisation, talent, and technology, and implementing best-in-class practices. He brings over 27 years of rich experience from the cement industry, where he worked extensively in operations, project implementation, strategic planning, logistics, Mr. Sunil Gupta Chief Executive Officer, Vedanta Limited, Jharsuguda commercial & marketing transformation, and the execution of various critical projects for ACC and KJS Cements. He holds a B. Tech degree in Electrical Engineering from the Government Engineering College, Ujjain, Madhya Pradesh. Ritu Jhingon is the Director - Corporate Communications and CEO of Vedanta’s flagship CSR project “Nand Ghar”, which aims to transform the lives of 7 crore children and 2 crore women across 13.7 lakh anganwadis in India. Joining Cairn Oil & Gas in 2010, a Vedanta Group company, Ritu has worked extensively in Corporate Communications and CSR, focussing on strategising Vedanta Group’s positioning, defining narratives, and driving brand communications while anchoring Group’s marquee social impact initiatives. As part of the management at Vedanta, she has been furthering an environment fostering entrepreneurial thinking and actively positioning the Company through brand initiatives and driving impact communications at national and international fora. With an experience spanning 3 decades, Ritu has previously worked with Hindustan Times Media Ltd., New Delhi and Ogilvy & Mather (Sri Lanka, Mumbai and Delhi). Ms. Jhingon holds an MBA in Marketing and B.Com (Hons.) from Sri Ram College of Commerce, University of Delhi. A national level swimmer, Ritu is also an avid photographer and her works have been part of many national exhibitions. Ms. Jhingon has featured in ‘Top 100 Global Influencers’ list by Provoke Media and is also a member of CII National Council on CSR. Shrikant Saboo was appointed as Director - Commercial, Marketing & Risk in August 2022. His key priorities include designing and driving the Commercial, Marketing, E-Commerce & Hedging strategies across the business portfolios, in line with global best practices and peer benchmarking, to unlock value for the organisation. His focus is on building strong Commercial & Marketing teams in the businesses and at the Group level along with driving strategic business partner relationships to achieve growth and profitability. He is a Chartered Accountant and MBA from Emory University, Goizueta Business School, USA. He brings 30 years of rich and diverse multicultural experience across Procurement & Supply Chain, Finance, Treasury, Commodity & Forex risk management, Mergers & Acquisitions, Business Strategy & Development and Project Management. He held global leadership roles and has worked with Hindalco Industries Ltd in India and with Novelis Inc in the US. Prior to joining Vedanta, he was with Indorama Ventures PCL in Thailand as a Senior Vice President where he was leading the global procurement of key raw materials & supply chain Asia, and had also supervised the global Aromatics finance team, and strategised the sales of specialty products. Ms. Ritu Jhingon Director, Corporate Communications and Corporate Social Responsibility Mr. Shrikant Saboo Director – Group Commercial and Marketing Rajesh Kumar is the CEO of Bharat Aluminium Company Limited (BALCO) and has been a valued member of Vedanta since 2023. With 36 years of experience in operations, maintenance, project implementation, and productivity improvement in Tata Steel's Indian and Thai units, he brings a wealth of expertise to his role at BALCO. As CEO, he is responsible for a wide range of functions across Mines, Aluminium Smelters, and Power plants. His key areas of focus include driving volume, managing costs, ensuring adherence to environmental, social, and governance (ESG) practices, spearheading growth projects, managing business partnerships, driving digitisation and innovation, leveraging technology, nurturing employee development, and benchmarking against industry best practices. He has made significant contributions to the implementation of large projects, mergers, and acquisitions and extended his visionary leadership in achieving world- class production, productivity, and quality benchmarks in multiple manufacturing units highlighting his capabilities. Mr. Kumar holds a bachelor's degree in Mechanical Engineering (B. Tech) from Banaras Hindu University (IIT BHU) and a Master's in Business Administration (MBA) with a gold medal in finance from XLRI, Jamshedpur. Navin Kumar Jaju was elevated to the role of Chief Executive Officer, Sesa Goa on December 2022. In his current role, Navin Jaju is responsible for overall Business performance, growth & expansion of Vedanta’s Sesa Goa Business, which has footprints across 5 states across India and overseas operations at Liberia - West Africa. Prior to this, he was handling the critical role of Chief Financial Officer - Iron and Steel Sector as appointed on September 2021, after taking up the position of Chief Financial Officer - Iron Ore Business in April 2020. He joined Vedanta Group in March 2005, and prior to joining the Iron Ore Business of Vedanta, Navin Jaju has worked in Vedanta’s Group Companies such as HZL, BALCO and Corporate Office. Navin Jaju is a well-seasoned executive with extensive diversified experience of over 18 years in Metals & Mining sector. He brings demonstrated leadership experience in multiple business verticals ranging from financial planning & analysis, Risk management to M&As and achieving business growth vision with utmost focus on strategic directions, exceptional P & L results, sustainable business, and people best practices. Navin Jaju is a B. Com graduate from St. Xavier’s College and a Chartered Accountant from the Institute of Chartered Accountants of India. Mr. Rajesh Kumar Chief Executive Officer & WTD, BALCO Mr. Navin Jaju Chief Executive Officer, Sesa Goa Iron Ore 74 75 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Ashish Gupta was appointed as the CEO, ESL Steel on September 2022. Prior to this, he was the Managing Director in Texmaco Rail and Engineering Limited from November 2020 to September 2022. He was also the Managing Director of TMILL (Tata Steel JV), from June 2017 to November 2020 and was the Chairman of TKM India and ISL, Dubai which are subsidiaries of TMILL. He was also a Board Member of Tata NYK, Singapore. He has a total of 29 years of experience. Mr. Gupta completed Vibhav Agarwal was appointed the CEO - Power in June 2022. He is a seasoned professional with over 22 years’ experience in Power and Infrastructure Sector with core competence in Strategy, Regulatory Affairs, Policy Advocacy, Financing, M&A, Legal, Commercial, Operations, Project Management & Execution, Corporate Affairs and Talent Management. With strong cross-functional leadership skills, and ability to drive decision-making, Vibhav has risen through the ranks and acquired top leadership positions in a short span of Mr. Ashish Gupta Chief Executive Officer, ESL Steel Mr. Vibhav Agarwal Chief Executive Officer, Talwandi Sabo Power Limited (TSPL) his General Management Program-CEDEP from INSEAD France in 2018. He is also an alumnus of XLRI, Jamshedpur, 1998, and IIT Roorkee, 1993, where he did his B.E in Electrical Engineering. time in the biggest corporates in India. Prior to his current role, Vibhav was Managing Director of Rattan India Power Limited, and has spent 17 years in Reliance Group at various leadership position. He is a B.Tech. from NIT Warangal, MBA from NITIE Mumbai and holds a certificate from ISB Hyderabad in Leadership & General Management. Rajinder Singh Ahuja was appointed as Head – HSE & Sustainability, for Vedanta on 20 July 2021. He was Deputy CEO, TSPL prior to being elevated to this role and brings 25 years of rich and diverse leadership experience across Metal & Mining, Cement and Power industry. He has worked with Hindustan Zinc and Aditya Birla group in the past. In his current role, he is currently leading a transformational journey to establish Vedanta as ESG leader in metal and mining space and implement globally best practices in the field of health, safety, ESG and governance through Technology, Automation, Digitisation across function. He works closely with Leadership, Business CEOs, IR/Communications teams and internal and external stakeholders to drive the implementation of ESG across Vedanta. Rajinder has been associated with Vedanta since 2003 and has been instrumental in establishing benchmark practices in HSE & Sustainability as HSES head of our Zinc business. Rajinder holds a bachelor’s degree in electrical engineering from Maulana Azad College of Technology (NIT Bhopal) and has been part of our Leadership development program by AON Hewitt and had been professionally trained on Safety by Dupont. Mr. Rajinder Singh Ahuja head – health, Safety, Environment (hSE) and Sustainability ExECUTIVE COMMITTEE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Pankaj Kumar Sharma currently holds the position of Chief Executive Officer in FACOR since June 2023, one of India’s leading producers and exporters of Ferro Chrome, with 150 KTPA Ferro chrome production capacity along with 6 Captive Chrome Ore Mines and a 100 MW Power Plant. A valued member of the Vedanta team since 2018, he has made notable contributions to the field of metal operations and functions, focussing on advancements that have significantly enhanced the industry. In his current role, he provides strategic direction and overall leadership to ensure exceptional business performance at FACOR. His responsibilities encompass driving multifold growth across Mines, Charge Chrome Plant, and Power Plant, with a strong focus on Volume, Cost, ESG, Growth Projects, Business Partner Management, Digitisation, Innovation and Technology, People Development, and Benchmarking with Best Practices. Before joining FACOR business, he held significant leadership roles at HZL and BALCO, where he made substantial contributions. With an impressive professional journey spanning 24 years, he has garnered experience across esteemed companies such as JSW Cement, Century Textile Industry Limited, Lafarge Holcim, and ACC Ltd. He holds a degree in Mechanical Engineering and is a certified Total Quality Management (TQM) professional from AOTS Japan. Puneet Khurana was appointed as the Deputy CEO of our Copper Operations (Fujairah and Silvassa) on 6 August 2021. In his role he is responsible for an overall US$125 million bottom line. He has been associated with Vedanta since 2006, and has been instrumental in driving an increase in Market share, Net sales realisation, Margin, Free cash flow, and reducing gross working capital and cost, through various roles in Vedanta Group companies such as Sterlite Industries, Cairn Oil and Gas, and Rohit Agarwal was appointed as Director – MAS in December 2022. He leads the overall Assurance vertical as the custodian of ethics and integrity, thus ensuring zero leakages across the organisation with specific focus on right people, right partners, right material and right practices. His priorities are to unlock value through business partnering, use of latest technology & data analytics and enhance internal controls, compliance & governance framework. Rohit is a qualified Chartered Accountant and has been with the Group for over 18 years with a brief stint outside the Fujairah Gold where he has held different profiles in Sales & marketing and Supply Chain Management. Puneet has a Masters of Business Administration (MBA) from ICFAI Business School Hyderabad, and a Bachelors of Technology (B.Tech) in Computer Science and Engineering from AKG Engineering College, Ghaziabad. Group. He joined as a Management Trainee in 2005, worked in various businesses across Group including overseas (Armenia and Australia) in various capacities and rose to the ranks of CFO of TSPL in 2018 through various internal Act-up programs/ Chairman Growth workshops. He has been part of various key transformational projects in finance domain over the years and has contributed immensely in the growth journey of Vedanta. Mr. Pankaj Kumar Sharma Chief Executive Officer, FACOR Mr. Puneet Khurana Deputy Chief Executive Officer, Copper Operations Mr. Rohit Agarwal Director – Management Assurance Services (MAS) 76 77 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 STAKEHOLDER ENGAGEMENT EFFECTIVE ENGAGEMENT AND BUILDING STAKEHOLDER TRUST At Vedanta, we ensure constructive stakeholder engagement across multiple industries and geographies. This builds successful, long-lasting relationships by identifying and addressing material problems that help us to anticipate emerging risks, opportunities and challenges that reinforce our competitiveness for long-term value creation. The table below sets out how we engaged with our stakeholders during the year to address their concerns and meet their expectations. Stakeholder Key Expectations How We Engage Initiatives in FY 2023 Value Created • Completed baseline, need, impact and SWOT assessments in all BUs • Community grievance process followed at all operations `454 crore of CSR investment ~44 million community members benefited Local Community • Undertaking need-based community infrastructure projects • Increasing reach of community development programmes • Provision of jobs & other means of livelihood • Improving grievance mechanism The Group has established a comprehensive social framework as a key to engaging with local communities. The Social Performance Steering Committee (SPSCs) employs a cross-functional approach to community engagement through community group meetings and village council meetings Community needs/social impact assessments are developed to undertake need-based community projects. We are increasing our community outreach via public hearings, grievance mechanisms and cultural events. Vedanta Foundation supports community engagement by supporting them philanthropically Employees • Safe workplace • Improved training on safety • Increased opportunities for career growth • Increasing the gender diversity of the workforce The Group undertakes employee performance management and employee feedback as the primary mode of engaging with employees. We follow a multi-dimensional approach to career and leadership development through V-Lead and ACT-UP programmes Chairman’s workshops, Chairman’s/ CEO’s townhall meetings and plant-level meetings are organised periodically to improve performance on material issues pertinent to Vedanta Limited Event management committee and welfare committee to assist in the training, organisation and supervision of employee engagement initiatives 2.11 million man-hours of safety training >30% of all new hires are women • Identification of top talent and future leaders through workshops • Recruitment of global talent through hiring from top global universities • Strengthening gender and regional diversity with V-Lead and V-Engage respectively • Dedicated hiring drive for women STAkEhOLDER ENGAGEMENT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Stakeholder Key Expectations How We Engage Initiatives in FY 2023 Value Created Shareholders, Investors, & Lenders • Consistent disclosure of economic, social, and environmental performance `101.5 per share dividend The Group has an active investor relations team that consistently provides disclosures on economic, social and environmental performance. The team provides regular updates to stakeholders through investor meetings, site visits, conferences and quarterly result calls The Company organises annual general meetings to engage with our key financial audience i.e., shareholders, investors & lenders. For stakeholders to raise their concerns, a dedicated contact channel has been assigned – ir@vedanta.co.in and esg@vedanta.co.in • Sustainability assurance audits conducted through Vedanta Sustainability Assurance Programme (VSAP) • Bi-weekly investor briefings and proactive engagement with the investor community on ESG topics Civil Society • Expectations of being aligned with the global sustainability agenda • Compliance with Human Rights The Group has implemented multi- stakeholder initiatives and partnerships with international organisations to align with the expectations of the global sustainability agenda. Any key concerns or trends from engagements with international, national and local NGOs are reported to the relevant community of practice. Conferences and workshops are conducted as needed 3,80,320 Total beneficiaries through sports 5,400 No. of people trained through our skill training programmes • Membership of international organisations including the United Nations Global Compact (UNGC), The Energy and Resources Institute (TERI), Confederation of Indian Industry (CII), The World Business Council for Sustainable Development (WBCSD), and Indian Biodiversity Business Initiative (IBBI) • Alignment with Sustainable Development Goals • Compliance with the Modern Slavery Act Industry (Suppliers, Customers, Peers, Media) • Consistent implementation of the code of business conduct & ethics • Ensuring contractual integrity, data privacy The Group ensures consistent implementation of the code of business conduct via in-person visits to customers, suppliers and vendors. To ascertain contractual integrity, a vendor scorecard is maintained. We strive to improve the overall customer experience through continual customer satisfaction surveys and meetings • Active hotline service and email ID to receive whistle- blower complaints • Vendor meets to understand vendors and supplier’s issues `35,116 crore Local Procurement Governments • Compliance with laws • Contributing towards the economic development of the nation Engagement with regulatory bodies includes participation in government consultation programmes. The Group engages with - national, state, and regional - government bodies at the business and operational levels both directly and through industrial associations • Partnership with UP government to eradicate state’s malnutrition by 2024 `73,486 crore paid to the exchequer • Partnership with Rajasthan government to modernise 25,000 anganwadis 78 79 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MATERIALITY IDENTIFYING MATTERS MOST RELEVANT To gain insight into challenges, perceptions, expectations and interests in a dynamic social landscape, Vedanta Limited prioritises conducting materiality exercises through effective stakeholder engagement that ultimately helps to shape our sustainability strategy. For this financial year, we undertook a detailed engagement exercise to identify new material issues that involve various ESG kPIs under Vedanta's three pillars and nine aims. Materiality matrix l r e d o h e k a t S o t e c n a t r o p m I M7 M8 M18 M9 M10 M20 M19 M4 M11 M12 M22 M24 M25 M21 M23 M14 M16 M17 M15 M13 M1 M2 M3 M5 M6 Impact on Business Highly Material Material Important highly material issues Material issues Important issues M1 Community Engagement & M8 Biodiversity & Ecosystems M21 Data Privacy & Cyber Security MATERIALITY INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Sr. No. high Priority Issues key kPI's FY 2023 Performance Targets/Initiatives for FY 2024 SDG Alignment 1 2 Community Engagement and Development • Total community • `454 crore spend • Total outreach • Nand Ghars in operations • Outreach - ~44 million total beneficiaries • Nand Ghars - 4,533 • Outreach to 5.5 million direct beneficiaries • Nand Ghars - >9,000 Water Management • Recycling % • Water recycling at 29.4% • Water positivity ratio • Freshwater reduction • 11.7% YoY reduction in fresh - 0.7 • Water positivity ratio water consumption • 4 sites water positive • Water positivity ratio - 0.62 3 Health, Safety and Well-Being • Zero fatalities • 13 fatalities • TRIFR • LTIFR • TRIFR = 1.20 • LTIFR = 0.52 • Zero fatalities • TRIFR - 0.76 • CAPA compliance • CAPA compliance 91% target 4 5 6 7 Business Ethics and Corporate Governance • Zero issues related to corporate governance • Transparent disclosures • Zero issues related to corporate governance • No major issues in corporate governance • Transparent disclosures • Include TNFD in the done through Sustainability, TCFD, IR, and BRSR reports disclosures list Climate Change and Decarbonisation • GHG emissions • RE power in operations • Biomass usage • GHG emissions 65.7 million tCO2e • RE PDAs in place - 788 MW RE RTC • RE RTC - >1,000 MW RE RTC • Biomass usage - ~1,25,000 tonnes • 78,000 tonnes of Biomass Diversity and Inclusion • Women employees in • 14.0% organisation • 9.1% • 18% • 16% • Women employees in leadership positions Air Emissions and Quality • SOx emissions • NOx emissions • All operations conforming to statutory limits for SOx & NOx • Maintain all operations below statutory limits of air emissions Development M2 Water Management M3 Health, Safety & Wellbeing M4 Business Ethics & Corporate Governance M5 Climate Change & Decarbonisation M6 Diversity & Inclusion M7 Air Emission & Quality M9 Waste Management M10 Labour Practices M22 Pandemic Response & Preparedness M23 Material Management & Circularity M11 Long Term Growth & Profitability M24 Product Stewardship • SPM M25 Macro-economic & Geopolitical Context M12 Innovation & R&D M13 Tailings Management M14 Responsible Advocacy M15 Talent Attraction & Retention M16 Learning & Development M17 Sustainable and Inclusive Supply Chain M18 Indigenous People & Cultural Heritage M19 Land Acquisition, Rehabilitation & Closure M20 Human Rights • HZL has introduced • Increase deployment of Battery Electric Vehicles in underground mining which will help to reduce SPM and other emissions EVs at site • FGD installation at VAL-L new power units • VAL J is operating the largest fleet of electric forklifts which has helped reduce diesel consumption 80 81 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPERATIONALISING ESG WITHIN VEDANTA TRANSFORMING FOR GOOD “Transforming for Good” encapsulates our ambition to embed ESG-thinking into every business decision we make. As our business continues to grow and create impact, we take on the role of global partners and align our vision to the UN’s Sustainable Development Goals (UN SDGs) by addressing challenges such as the climate crisis, water stress, biodiversity loss, equity, inclusion, human rights, and social development. OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Our three sustainability-focussed pillars are depicted in the diagram below. There are nine goals listed under these three pillars that attest to our dedication to minimising harm. With the help of our ESG approach, the Company is able to meet the demands of its important stakeholders in the areas of climate change, human rights, secure working conditions, environmental stewardship, diversity and inclusion, and sound governance. It builds upon the strong foundation of world-class policies and standards that the Company has built over the last decade. ESG Governance: At Vedanta Limited, the ESG Board Committee is the top decision-making body for all ESG matters. Together with our Group Sustainability and ESG function, it is responsible for implementing, promoting, and monitoring initiatives under our 'Transforming for Good' agenda. To ensure effective oversight and timely implementation of ESG initiatives, we have established dedicated forums at all levels of management and ESG-themed communities at each Business Unit (BU) and Strategic Business Unit (SBU). These communities are responsible for owning specific ESG Key Performance Indicators (KPIs) and driving their successful implementation. Commitments and targets Transforming communities Transforming the planet Transforming the workplace Aim 1 Aim 4 Aim 7 Keep community welfare at the core of business decisions Net-carbon neutrality* by 2050 or sooner Prioritising the safety and health of all employees Aim 2 Aim 5 Aim 8 Empowering over 2.5 million families with enhanced skillsets Achieving net water positivity by 2030 Promote gender parity, diversity, and inclusivity Aim 3 Aim 6 Aim 9 Uplifting over 100 million women and children through Education, Nutrition, Healthcare and Welfare Innovating for a greener business model Adhere to global business standards of corporate governance * As per UNFCCC, net-carbon neutrality refers to the idea of achieving net zero greenhouse gas emissions by balancing those emissions, thus, they are equal (or less than) the emissions that get removed through the planet’s natural absorption ESG GOVERNANCE AT VEDANTA Board of Directors Board ESG Committee ESG Board Sub-Committee Group ESG ExCo (Part of Group ExCo) ESG Management Committee Corporate Transformation Office (TO) Transformation Office - BU & Functional Monthly forum with Group ExCo to update on overall ESG progress (overall MIS and updates) Fortnightly meeting to oversee Programme update (9 aims - Corp & BU targets against actual) Key decisions (strategic direction, cross- functional support) Weekly TO meeting with GCEO to drive and accelerate the high impact project implementation 9 BU TOs, Functional TOs and 1 reporting & disclosure TO running on a weekly/fortnightly level to monitor progress and drive implementation across the organisation Communities of Practice (CoPs) 15 CoPs, overall CoP leaders, 250+ Community members identified across all BUs/SBUs to drive agenda within communities We have 15 Communities of Practice, led by senior, experienced professionals within the organisation, to drive specific ESG KPIs. This robust ESG management approach will ensure that our commitment to sustainability is fully integrated into our business practices and that we continue to transform for good. 82 83 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Communities of Practice at Vedanta Energy & Carbon Tailings Health Communication Expansion Renewable Energy Steering Committee Waste Safety Community Supply Chain Biodiversity Water People Finance Security While Communities of Practice, drive implementation of our ESG aims across BUs and functions, their progress is governed by the ESG ManCom and the Board-level ESG sub-committee. ESG Advisory Committee The Company benefits from the advice of external ESG advisers, who have been on-boarded to assist decision- making bodies such as the ESG ManCom. These senior advisers have led ESG functions across the world at leading metals and mining operations and have extensive global experience in dealing with ESG issues. These include ESG governance, social stakeholder management and the adaptation of global best practices such as the International Council on Mining and Metals (ICMM) and the Voluntary Principles on Security and Human Rights (VPSHR), among others. The ESG advisers provide valuable insights and inputs at the highest decision-making level. Their expertise and guidance ensure that our ESG initiatives are aligned with global best practices, enabling meaningful progress towards our sustainability goals. Capacity Building of Senior Management on ESG Leadership commitment and people are key enablers of ESG. We have successfully completed a basic ESG training programme, Sustainability 101, for our top 100 senior managers. It has now been extended to the rest of the organisation via the online mode. The programme, designed to provide a better understanding of ESG-related issues, challenges, opportunities, and their relevance to our business, will help increase sensitivity and awareness amongst employees in working towards our ESG goals. The training will help our leaders and employees make more informed decisions and drive our sustainability 84 agenda forward. We remain committed to investing in our employees and building a culture of sustainability within our organisation. Robust Model to Drive ESG Actions To ensure standard implementation of sustainability practices across all our businesses, Vedanta introduced the “Vedanta Sustainability Framework” (VSF) in 2011. The VSF is supported by an annual audit program called the “Vedanta Sustainability Assurance Program” (VSAP). Collectively, VSF and VSAP have helped establish the foundation for the implementation of sustainability practices across the Group companies. Management Team at BALCO OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Vedanta Sustainability Framework (VSF) Vedanta Sustainability Assurance Framework (VSAP) • Aligned with ICMM, International Finance • Annual VSAP audit across all business locations to ensure Corporation (IFC), and UNGC • Encompasses 9 Vedanta Sustainability Policies, 92 standards (for safety, technical, tailings dams, environmental performance, social performance and management) and guidance notes for various ESG and HSE- related issues VSF compliance, making it critical for measuring and improving sustainability performance • VSAP results reviewed by top management, and relevant actions taken to improve processes • 15% of executives’ total variable pay linked to business’ VSAP score (70 or higher), to incentivise compliance and sustainability • VSAP scores are discussed at Board meetings, with inputs from Board ESG Committee, to ensure that sustainability remains a priority for Board and executive leadership Reinforcing VSF In FY 2023, we have initiated updating our standards and rationalising them to better reflect our ESG vision. New standards are being added to address emerging sustainability challenges, for meeting or exceeding global best practices. It will facilitate decision-making and execution, besides ensuring that sustainability remains at the core of our operations. ESG Scorecard As part of our ongoing commitment to ‘Transforming for Good’ by transforming the planet, communities and workplace, we have developed an ESG scorecard to track our progress towards our aims and targets. This helps us monitor our performance and take corrective action where necessary. Transforming Communities Aim 1 Responsible business decisions based on community welfare key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Impact Management Zero social incidents category 4 and above Transparency & Trust Signatories and participants in VPSHR Set up an external SP advisory body Annual human rights assessment across all the businesses Community Development 8.3 Security CoP was formed and initial work started External ESG advisory body with two global experts Aim 2 Empowering over 2.5 million families with enhanced skillsets key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Skilling (Number of families to be impacted through skill development and training) 1.5 million 2.5 million families 0.6 million families skilled Community Development 2.3, 2.4, 4.4, 8.3 Aim 3 Uplifting over 100 million women and children through Education, Nutrition, Healthcare and Welfare key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Nand Ghar (Number of Nand Ghars to be completed) 29,000 29,000 4,533+ Nand Ghars built till 31 March 2023 Community Development Education, Nutrition, Healthcare and Welfare (No. of women and children to be uplifted by Nand Ghar initiatives) 48 million - 11.74 million women and children uplifted 2.1, 2.2, 4.1, 4.2 2.3, 2.4, 4.4, 8.3 85 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Transforming Planet Transforming Workplace Aim 4 Reduction in carbon emission intensity by 25% by 2030, and net-carbon neutrality by 2050 or sooner Aim 7 Prioritising the safety and health for all employees Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs OPERATIONALISING ESG wIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Absolute GHG emissions (% reduction from FY 2021 baseline) - 25% 9% higher than FY 2021 baseline Climate change and decarbonisation 7.2, 12.2, 13.2 GHG Emissions Intensity (% reduction from FY 2021 baseline) 20% - 6.24 tCO2e/tonne of Metal vs 6.45 tCO2e for FY 2021 (base year) Renewable Energy 500 MW RE RTC or equivalent 2.5 GW of RE RTC or equivalent 230 MW RTC or equivalent LMV Decarbonisation (% LMVs) 50% 100% Biodiesel trials with 30% blend at Balco, VAL- J Capital Allocation for transition to net zero Hydrogen as fuel - - US$5 billion Commitment to accelerate the adoption of hydrogen as a fuel and seek to diversify into H2 fuel or related businesses No work was undertaken in this area in FY 2023 Aim 5 Achieving net water positivity by 2030 Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Net Water Positivity - Net water positivity Water positivity ratio: 0.62 Water management Freshwater consumption (% reduction from FY 2021 baseline) 15% - 12.1% from FY21 baseline Water Related Incidents Zero category 4 and 5 incidents related to water Zero Water Recycling (%) 33% - 29.4% 6.3, 6.4, 6.5, 6.b Aim 6 Innovations for greener business model Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Fly ash (utilisation) Sustain 100% utilisation 204% Legacy Fly ash Waste Utilisation (High volume, low toxicity) Tailings dam audit and findings closure Biodiversity Risk Biodiversity - 100% All tailing facilities were audited, and actions were closed with real-time monitoring Review of site biodiversity risk across all our locations Determine the feasibility for commitment to No-Net-Loss or Net- Positive-Impact (NNL/ NPI) targets Solid Waste Management 12.5 Zero legacy ash 44.42 million tonnes 100% - - Roadmap to achieve No-Net-Loss or Net-Positive-Impact in place Site assessment completed Tailings Dam Management 60% closure of findings of stage 1 study Baseline studies to determine biodiversity risk completed Target for NNL/NPI to set by 1QFY 2024 Biodiversity 15.1, 15.2, 15.9 Health and Safety 8.8 Fatalities (No.) Zero Lost Time Injury Frequency Rate (LTIFR) 10% reduction (year-on-year) Total Recordable Injury Frequency Rate (TRIFR) 0.98 (30% reduction from FY 2021 baseline) 0.8 TRIFR per million man hours Occupational Health Management Systems Exposure Monitoring Health performance standards implemented and part of VSAP Employee and community exposure monitoring to be completed - - 13 0.52 1.20 In progress To be undertaken Exposure Prevention - No employee exposure to red zone areas In progress Employee Well-being Mental health programme in place for all employees - 100% completed 100% of eligible employees to undergo periodic medical examinations Aim 8 Promote gender parity, diversity and inclusivity Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Gender diversity (% women in the FTE workforce) Equal Opportunity for everyone Gender diversity (% women in leadership roles in FTE workforce) Gender diversity (% women in decision-making bodies in FTE workforce) Gender diversity (% women in technical leader/shop floor roles in FTE workforce) - - - (FTE denotes full-time employees) 20% 40% 30% 14.0% 9.1% 28.34% 10% 13% Diversity and Equal Opportunity 5.1, 5.5, 5.c Aim 9 Adhere to global business standards of corporate governance Key performance indicators FY 2025 Goals FY 2030 Goals FY 2023 performance Material matters UN SDGs Safety Programme for Business Partners Rubaru is to be introduced at all Business Units across Vedanta TRIFR - 1.04 Supply Chain GHG transition Work with our long-term, tier 1 suppliers to submit their GHG reduction strategies Align our GHG reduction strategies with our long-term tier- 1 suppliers Supply Chain Sustainability 8.7 Critical risk management programme rolled at all BU sites Commercial CoP is constituted to address supplier chain-related ESG issues (including GHG emissions) Training on Code of Conduct Continue to cover 100% of employees % Independent Directors on Board 50% Independent Directors on Board as per SEBI requirements % gender diversity on the Board 25% 86 87 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 TRANSFORMING COMMUNITIES Communities give us the licence to operate and therefore are a top priority in our efforts to strengthen our bonds and gain their trust and support. We continually engage with the surrounding communities to respond to their needs, adapt our actions to the evolving landscape and ensure stringent adoption of globally-recognised human rights principles. Our community engagements, which include our CSR programs, are designed to bring positive change into the lives of the local communities, including scalable socio-economic development. OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Social Governance at Vedanta Our social governance structure is founded on a social framework that includes management and technical standards and guidelines that are an integral part of the Vedanta Sustainability Framework (VSF). This social ethos is aligned with the International Finance Corporation (IFC) performance standards and based on industry best practices from organisations such as the International Council on Mining and Metals (ICMM). To ensure the effective implementation of our CSR initiatives, we have established a CSR Council, consisting of senior business leaders, CSR Heads and CSR Executives from all our business units. The Council meets monthly to discuss and make decisions on important matters related to CSR. The CSR Council is accountable to our Board CSR Committee, which approves the CSR budget, plans and reviews progress Empowering Communities with Focussed Action At Vedanta Limited, we have identified focussed community development areas, where we undertake dedicated efforts to drive holistic and scalable development. In FY 2023, we spent `454 crore on various community programmes benefiting ~44 million people. In the last five years, we have spent more than `1,750 crore on community development actions. Further, we participate in initiatives of national importance such as disaster mitigation, rescue, relief and rehabilitation. Since the last three years of the COVID-19-triggered emergency, we have been undertaking efforts to protect our employees and communities under the Vedanta Cares programme. Healthcare 2.70 million people benefited 33 initiatives Drinking Water & Sanitation 0.62 million people benefited 17 initiatives Community Infrastructure 0.63 million people benefited 15 initiatives Sports & Culture 0.36 million sports persons and culture enthusiasts benefited 13 initiatives Vedanta CSR impact in FY 2023 8 focussed-areas one mission – transforming communities Livelihood 0.1 million people benefited 11 initiatives Women’s Empowerment 44,503 women benefited 7 initiatives Environmental Protection & Restoration 0.42 million people benefited 3 initiatives Children’s Well-Being & Education 38.7 million children benefited 28 initiatives 88 89 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Making Community Welfare a Priority Enabling Brighter Futures and Quality of Life Aim 1: Keep community welfare at the core of business decisions Governance: Site-based Social Performance Steering Committees Review Frequency: Determined by site-teams SDG impacted: Aim 2: Empowering over 2.5 million families with enhanced skillsets Governance: Community of Practice (CoP) Review Frequency: Monthly SDG impacted: Social Performance and Social Licence to Operate: At Vedanta, we are building systems that will help build trust with local communities and thereby enhance our social licence to operate. Our processes are meant to regularly engage with community members and ensure that they are consulted/made aware of aspects of corporate performance that may impact their lives. Under the aegis of “Social Performance”, we have constituted “Social Performance Steering Committees” (SPSCs) across all our sites. The SPSCs have been created to ensure that site management has comprehensive visibility to all community expectations and concerns and respond in a co-ordinated manner that helps build community trust. Communities near Lanjigarh Refinery All sites have grievance mechanism cells and well-laid-down procedures to handle community grievances transparently and in a timely manner. The SPSCs also help ensure that: i. ii. iii. iv. All social incidents are investigated and closed in a systematic manner The site takes mitigative and pre-emptive action on any operational elements that may cause harm to the community There are strategies in place to ensure local procurement and local employment There is a coordinated stakeholder engagement strategy that involves the relevant internal teams such as CSR, External Affairs, and Security among others v. All social incidents are investigated and closed in a systematic manner To further enhance our performance and governance on security matters, we have established a security Community of Practice (CoP). This CoP has been tasked to implement the recommendations of the Voluntary Principles on Security and Human Rights (VPSHR), which are recognised as global best practices for managing private and public security forces. Highlights for FY 2023: • Local procurement1 improved to 40% from 35% YoY • Social Performance pilot project completed at VAL- Lanjigarh • Completion of a human rights self-assessment across all BUs • Programs being developed to hire women into the workforce from local and neighbouring communities Note 1: Procurement done within/from the same State of operations We aim to improve the earning potential and quality of life of families within the communities near our plants and areas of operations through various skill- building and social interventions. We are committed to upskilling and empowering youths to obtain jobs through our skill centres. We assist farmers in improving agricultural practices for enhancing crop yield and quality and also to earn a second income through animal husbandry-related interventions. Additionally, we support more than 69,000 youth sports persons across Rajasthan, Goa, Odisha and Jharkhand with our sport-related works. This ensures them a better future while bringing laurels to their community, state and country. Highlights for FY 2023: • Micro-Enterprise Development Programme at HZL – (2 brands | 14 production units | 200+ products | 382 women employed | `2.26 crore turnover) • 4,533 Nand Ghars completed • TSPL: ~2,000 farmer beneficiaries and ~2,000 women beneficiaries under Project Navidisha and Project Tara respectively Case study BALCO Creates Pathway to Prosperity Problem statement – Limited job opportunities for youth and women around the Balco area. Solution Vedanta Skills School has been at the forefront of bringing change by imparting skills-based education to women, youth and dropout students in the Balco vicinity. Vedanta Skill School is a premium institute of BALCO Vocational Skill Centre, which imparts training in six different trades along with residential facilities besides providing placement in a reputed institute. This project is aligned with UN SDG 8. Impact 765 people skilled and successfully employed in FY 2023. Ensuring Transformational Change with Holistic Development Aim 3: Lives of over 100 million women and children uplifted through Education, Nutrition, Healthcare and Welfare Governance: Community of Practice (CoP) Review Frequency: Monthly SDG impacted: We collaborate with several NGOs to run programmes for enabling healthcare, education, nutrition, economic empowerment and digital governance for the local communities. Our flagship project, Nand Ghar, is an important pillar of this work. Currently, we have established 4,533 Nand Ghars that cater to 3.2 lakh women and children annually. Our target is to continue with these programmes and achieve breadth and depth of reach. Highlights for FY 2023: • Launch of Nutribar: A millet-based supplement to eradicate malnourishment in six months • Sesa Technical School: 67 students in the second year of the vocational training course have completed their final year and passed out with a 100% placement rate 90 91 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 TRANSFORMING THE PLANET At Vedanta, we recognise our crucial role in addressing climate change and enabling a better and safer tomorrow. We are continually improving our practices to ensure that our operations and supply chain are more sustainable thereby setting benchmarks with pioneering initiatives around decarbonisation, circular economy, water positivity and increasingly efficient processes. 92 OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Building a Climate-Resilient Future Aim 4: Net-carbon neutrality by 2050 or sooner Governance: Energy & Carbon CoP, Biomass Working Group Review Frequency: Monthly SDG impacted: In FY 2022, Vedanta committed to decarbonise its operations and achieve net-carbon neutrality (net-zero carbon for Scope 1 & Scope 2 GHG emissions) by 2050 or sooner. Our GHG reduction strategy consists of four-levers, (i) Increasing the share of renewable energy, (ii) Switching to low-carbon or zero-carbon fuels, (iii) Improve the energy efficiency of our operations, and (iv) Offsetting residual emissions. In FY 2023, we have made progress in levers (i) – (iii). We only plan to purchase carbon offsets if we are unable to reduce our GHG emissions to target levels in 2030 and subsequently in 2050. Our GHG reduction roadmap consists of 4 stages: In stage 1 (FY 2021-FY 2025), we plan to reduce to GHG intensity (tCO2e/tonne) of our metals businesses by 20% by FY 2025 (from a FY 2021) baseline. In stage 2 (FY 2021-FY 2030), we will deploy the renewable energy capacity to ensure that we will have 2.5 GW of Round-the-Clock renewable power by 2030. In stage 3 (FY 2026-FY 2030), we anticipate a reduction in our absolute GHG emissions in line with our target to reduce our absolute GHG emissions by 25% by FY 2030 (from a FY 2021 baseline). In stage 4 (beyond 2030), we aim to deploy emerging technologies at scale and expand our renewable energy capacities to become a net-zero carbon business by 2050. Note: Due to significant capacity expansion projects underway, we anticipate that our energy consumption will increase, thus peaking our greenhouse gas (GHG) emissions around FY 2026-27. In FY 2023, we initiated multiple measures to help achieve our mid-term targets. Over the past two years, our efforts have resulted in avoided emissions of 4.17 million tCO2e based on the FY 2021 baseline and 14.62 million tCO2e based on the initial FY 2012 baseline. Key Highlights, FY 2023 Lever 1: Increasing Renewable energy By the end of FY 2023, Vedanta has signed 788 MW (RTC) renewable energy (RE) power delivery agreements (PDAs). Implementation of these PDAs will result in RE power consumption in operations increasing to ~ 6,900 million units, thereby avoiding 6.6 million tCO2e in the atmosphere per year. With this, we shall meet 32% of our RE target of using 2,500 MW of RE RTC (eq.) power by 2030. An RE Steering Committee has been set up to coordinate efforts between different business entities. Lever 2: Switch to low-carbon/zero-carbon fuels Transitioning from coal to biomass is the mainstay of our fuel switch strategy. Our goal is to substitute 5% of the coal used in thermal power plants with biomass, a net zero-carbon fuel. In FY 2023, we used ~78,000 tonnes of biomass in our operations, a ~4x increase over FY 2022 levels (18,000 tonnes), resulting in a 0.2% coal switch. The biomass working group is creating a 3-year roadmap to use 5% biomass in operations. We have also made positive progress on reducing emissions from LMV and mining fleet, through electrification and other measures. HZL and ESL have initiated the use of electric vehicles. HZL has launched the first battery-powered electric underground vehicle and LNG-powered 55-tonne heavy-duty trucks. A large electric forklift fleet of 27 is operating at our Jharsuguda location. Biofuel trials have started at BALCO and VAL-Jharsuguda and planning is underway to start trials at Sterlite Copper and Sesa Value-Added Business (VAB). Lever 3: Improving the energy and process efficiency of our operations Our commitment to the plan drives our efforts towards energy efficiency and process improvement, which are areas of keen focus. In the pursuit of these goals, we have undertaken some major projects in the aluminium sector that are expected to boost our efficiency levels. Some of these projects include: • 100% Graphitisation with copper inserted collected bar (potential 1 million tCO2e/year) • Vedanta pot controller implementation (potential 0.2 million tCO2e) • Commissioning of TRT and BPRT at ESL (potential 82,000 tCO2e/year) • Natural gas usage at Lanjigarh Alumina Refinery (potential 1,20,000 tCO2e/year) 93 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 While these are projects under progress, there are some major energy efficiency projects we have completed at our sites: • R&M of 1 unit of 600 MW at VAL Jharsuguda (3,70,000 tCO2e/year) • VAL Lanjigarh Evaporation - 1 Calendria 1 and 2 tubes replacement (18,000 tCO2e/year) FY 2023 Key Achievements 439 MW of New RE RTC PDAs signed in FY 2023 taking the total to 788 MW RE RTC till FY 2023 • VAL Lanjigarh Boiler 2 junior APH replacement 2 billion units of RE power consumption (16,000 tCO2e/year) • ESL Fuel crushing index improvement (31,000 tCO2e/ year) • ESL LD gas recovery project completion (18,000 tCO2e/year) Lever 4: Purchasing carbon offsets for residual emissions We have currently not initiated work on our fourth lever of GHG reduction i.e. carbon offset and will consider purchase or investment options for residual/hard-to- abate GHG emissions at the end of our target period. Biomass usage ~78,000 tonnes Introduction of battery vehicles in HZL, biodiesel trials at BALCO/VAL Jharsuguda Introduction of an Internal carbon pricing (ICP) across all businesses Introduction of EV policy for our employees FY 2023: Emission Performance Scope 1 Emissions Scope 2 Emissions Scope 3 Emissions . 3 9 8 5 9 4 9 5 . 5 1 . 7 5 7 5 . 8 0 2 6 3 . 9 1 4 3 . 2 9 . 5 3 4 3 3 . 1 3 1 . FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Absolute GHG Emissions: Our Scope 1 & Scope 2 GHG emissions have increased marginally by 4.6% increase from last year, however, our combined Scope 1, 2, & 3 emissions have flat-lined compared to FY 2022. As mentioned above, we anticipate a reduction in our Scope 1 & 2 GHG emissions after FY 2026. GHG Intensity: We are on track to achieve a reduction in the GHG intensity of our metals business by 20%. In FY 2023, we were able to achieve a reduction of 3%. Scope 3 targets: Currently, we do not have Vedanta- wide reduction targets for our Scope 3 GHG emissions. These will be finalised in FY 2024. However, two of our businesses have taken Scope 3 reduction targets: 1. 2. HZL has the target of reducing scope 3 emissions by 20% by 2027 over the 2017 baseline Aluminium sector has taken the target of a 25% reduction in scope 3 emissions over the 2021 baseline OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Internal Carbon Price (ICP): Vedanta has set an Internal Carbon Price of US$15/tCO2e. This is a shadow price that will be deployed for any project that has a budget of `50 million or more. We also have BU-specific ICPs. Financing our Net Zero transition: As part of its net-zero commitments, Vedanta aims to spend US$5 billion over the next decade. While the allocations are still under planning, the goal is to spend more than 60% on increasing the use of renewable energy in our operations. The remaining 40% will be split almost evenly between energy efficiency, fuel switch, fleet decarbonisation, and carbon offset projects. More details about Vedanta’s decarbonisation strategy can be found in our FY 2023 TCFD Climate Change Report. Striving for a Water-Positive World Aim 5: Achieving Net Water Positivity by 2030 Governance: Water CoP Review Frequency: Monthly SDG impacted: Giving back to the community We are creating rainwater harvesting and groundwater recharging projects for our communities to improve freshwater availability and retain biodiversity in the area. Almost 13% of our water-related projects are in these areas. RE-led water consumption reduction The increased usage of RE power in our operations at major locations like HZL, VAL Jharsuguda and BALCO are helping to improve our water positivity ratio. It has helped reduce coal power generation, which currently requires a large amount of fresh water. Vedanta defines net water positive impact as the ratio of Water Credit (water given back to natural water bodies) and Water Debit (water taken from natural water bodies).If the ratio is >1, then the site is said to be water positive. We have undertaken significant initiatives to progress towards becoming water positive, which has resulted in a 2% reduction in our overall water consumption in FY 2023 from FY 2021 baseline. Site-specific roadmaps are being developed, which involve identifying projects both within and outside our premises to improve our water positivity ratio. To ensure consistency and accuracy in our calculations, we have also developed and approved standard operating procedures (SOP) related to water positivity. Key Highlights, FY 2023 Freshwater reduction We are banking on technology deployment across our sites to reduce freshwater usage through process improvement and recycling of wastewater. Out of our total water projects pipeline, 77% are focussed on reducing waste from operations as well as reusing wastewater in operations. Replacing fresh water with alternate sources We have resorted to alternative water sources like municipal wastewater and saline water or even harnessed the power of rainwater harvesting for usage in our operations. Nearly 10% of our projects are related to this lever. 94 95 Effluent Treatment Plant at Dariba Smelting Complex VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPERATIONALISING ESG wIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS FY 2023 Key Achievements Enabling a Cleaner, Greener and Sustainable Tomorrow Improvement in water positivity ratio from ~0.51 to ~0.62 YoY Four sites have attained water-positive status (HZL, IOB, Cairn India and BMM) Site-wise detailed water study completed for each major site including long-term basin study for water availability (2030 and beyond) Standard operating procedure prepared to calculate water positivity ratio 40+ water bodies restored by the aluminium sector Lanjigarh Operations Case study Dariba Smelting Complex Digital mapping of water consumption Problem statement DSC was unable to get water consumption information across different plant areas due to design issues and the unavailability of digital flow meters. This led to inefficiency in operations, water usage and planning. • Use of wireless hardware to acquire data from remote analogue flowmeters and fusing it with available online data, to get a clear picture of water generation and consumption Impact Solution DSC joined hands with the start-up, Promethean Energy, to improve operational efficiency. The following measures were implemented: • Better understanding of water intake and consumption in different subunits amongst on-ground employees and leadership • Clarity on focus areas • Centralisation of water flow data acquisition on a • common platform Identification of areas and projects for consumption reduction, which will result in a targeted 2-3% water savings Aim 6: Greener Business Model Governance: Waste to Wealth CoP Review Frequency: Monthly SDG impacted: A greener business model translates into efficient management of natural resources and improvement in the circularity of our business, reducing the impact of our operations on biodiversity besides evaluating new green business growth opportunities. Key Highlights, FY 2023 Circular business models We are improving the circularity of our businesses by maximising utilisation of the high-volume-low-toxic (HVLT) wastes generated in our operations. In FY 2023, nearly 164% of our HVLT wastes were reutilised. Fly ash, which forms the bulk of these wastes, saw 200% utilisation. Our goal is to ensure that by 2035, we utilise 100% of the generated waste and reduce to zero the legacy waste stored at our sites. We are working with the cement industry to utilise operational waste as raw material and with the National Highways Authority of India (NHAI) to use the waste as substrate for road construction. HVLTs such as red mud contain traces of Rare Earth Minerals (REE) and Research and Development projects are underway to enable the economical extraction of these minerals. Trials are also underway to use this waste as an alternative to sand. We are collaborating with CSIR, CRRI, IIT Kharagpur, IMMT, and NITI Aayog on these projects. Reducing biodiversity impact During the year, we established the biodiversity baseline for our sites. This will help us to understand the impact of our operations on biodiversity and guide the actions to be initiated to achieve No Net Loss (NNL)/Net Positive Impact (NPI) impact in the long term. We can accordingly update our biodiversity management plan (BMP). In FY 2024, we intend to finalise actions and timelines to reach the No Net Loss state, to kickstart relevant actions on the ground. FY 2023 Key Achievements 29.8 million tonnes HVLT waste utilisation (162% for FY 2024) 28.1 million tonnes utilisation for Fly Ash (203%) Legacy waste reduced from 62 million tonnes to 45 million tonnes Lab scale feasibility study completed with CSIR- Central Road Research Institute (CSIR-CRRI) for utilisation of red mud in highway construction Biodiversity baseline study was completed for all sites Bricks developed from Waste 96 97 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 TRANSFORMING THE WORKPLACE Employees are key to propelling our business growth through their competencies, skills and knowledge. Vedanta thus encourages a work culture that ensures their health, well-being and safety, supports diversity and inclusivity and provides equal opportunity to all its people. These values enable us to attract the best talent and unlock their full potential, thereby making us an employer of choice. OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Safety First, Safety Always SDG impacted: Case study Aim 7: Prioritising safety and health of all employees Governance: Safety CoP Review Frequency: Monthly We regret to report that 13 tragic fatalities occurred in FY 2023, which is an area of utmost concern for our organisation. With a sincere commitment to improving our safety performance, we have already implemented a focussed approach to reducing fatalities and improving overall workplace safety. Our analysis of fatal injuries indicates that man-machine interaction, vehicle driving and structural stability were the top three causes of fatalities this year. We recognise the importance of addressing these critical areas to prevent future incidents and have implemented steps to improve safety measures in these areas. Key Highlights, FY 2023 We have identified three levers to improve our safety performance and prevent fatal injuries in the future: Implementation of Critical Risk Management (CRM) We have implemented a scientific approach to analysing the root causes of fatalities, learning from them, and implementing actions on the ground. Currently, we are focussing on three areas of risk at the work site: vehicle- pedestrian segregation, man-machine interaction and work at heights. Improving safety infrastructure We recognise the importance of providing a safe work environment to our employees and have therefore prioritised improvements in our safety infrastructure. We are installing walking pathways with guiderails, roads with markers and traffic signals and separate roads for ash dumpers. Our focus is on ensuring that there are no fatal injuries due to the lack of safe infrastructure in place. Employee and business partner training We recognise the value of ensuring the safety of all our employees and business partners. We are therefore organising on-site trainings, virtual webinars and group CEO sessions to reinforce the importance of working safely and stopping work in case of any unsafe situation on the ground. Our goal is to foster a culture of safety for our employees and business partners. Improving Mines Safety through Slope Stability Radar Problem Statement Open cast mining poses a risk of slope failure which can hamper the safety of man and machine in nearby areas. One such slope failure occurred at our FACOR Ostapal Chromite Mines, Southwestern (SW) corner of the pit area, on 15 August 2022. Solution Pre-empting the risk of slope failure in advance, our FACOR in-house geotechnical team assessed the complete area and installed Slope Stability Radars (SSR) at strategic mine locations covering the whole pit and dump area. This state-of-the-art technology can measure slope deformation with the highest accuracy. There are only 10 such systems installed in India at present. The technology helps to detect slope anomalies in advance and prevent the possibility of accidents. Time of events • July 2022 – Team assessed the hazard in different areas and installed SSR to monitor the particular SW corner location • 11 August 2022 – Slope deformation was observed in the SW corner area through SSR. Subsequently, the area was checked physically but no significant abnormality was observed. An alert was communicated to the Mines shift in-charge to avoid man-machinery movement in the influence zone • 12 August 2022 – Some crack on the surface area was observed beyond the mine lease boundary • 14 August 2022 – Total deformation of 250 mm (average) was observed and a high alert was raised. After observing further spurt of deformation, we completely restricted man-machinery in that area including the influence zone • 15 August 2022 – At 04:07 PM, slope failure occurred at the Southwestern Corner of the pit area from 144 mRL to 96 mRL (~1.5 lakh m3 of rock) Impact No accident/injury to any personnel or equipment/ vehicle occurred in this case of slope failure due to pre- empting of risk. Now, the system is also being deployed by other businesses like Iron Ore Business in Karnataka and Hindustan Zinc Limited in Rampura Agucha Mines. 98 99 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPERATIONALISING ESG WIThIN VEDANTA INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Fatal injuries LTIFR TRIFR Enhancing a Responsible and Ethical Work Culture FY 2023 Key Achievements CRM implementation started New standard rolled out for lift maintenance 8 3 1 2 1 6 5 0 . 8 5 0 . 2 5 0 . 8 4 1 . 0 4 1 . 0 2 1 . Aim 9: Adhere to global business standards of corporate governance Governance: MAS/ Company Secretariat/ Group Sustainability Review Frequency: Monthly SDG impacted: Overhaul of safety standards under VSF, under progress FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 FY 2021 FY 2022 FY 2023 Breaking Barriers, Building Multi-Dimensional Workforce SDG impacted: FY 2023 Key Achievements Aim 8: Promote gender parity, diversity and inclusivity Governance: D&I Council Review Frequency: Monthly We are committed to improving gender diversity in our workforce and have implemented several initiatives to achieve this goal. Our aim is to ensure gender diversity at all levels of the organisation, including recruitment, decision-making and leadership. Overall, we believe that our initiatives to improve gender diversity in the workforce will result in a more inclusive and diverse workplace. Our commitment to implement additional initiatives ensures that we continue to attract and retain the best talent from diverse backgrounds. Key Highlights, FY 2023 Enhancing Women Participation We have set a target of recruiting more than 50% of women employees to improve the gender ratio in the workplace. We are providing opportunities to women employees with relevant experience to become part of decision-making bodies like ManCom and ExCo. To groom the top 100 high-performing women employees in the organisation for CXO roles, we have introduced the V-Lead programme, which will involve mentoring by senior business leaders. We are also creating a second line of leaders in the organisation through early identification of talent through structured processes like ACT-UP, V-Reach and other similar programmes. 14% women in the organisation 28.23% women in decision-making bodies 9% women in leadership position Case study hZL’s Ambavgarh Dialogue Problem Statement Development of women employees was a challenge in HZL due to the lack of dedicated programmes Solution HZL started an annual ‘Ambavgarh Dialogue’ to groom high-performing employees for the next level. The programme involves one-on-one interactions with CEO and CHRO for selected and high-performing women employees along with leadership inputs by key people in the business. The initiative also includes finalising individual career development journeys, cross-function and cross- departmental movements, coaching from leading corporate coaches etc. Impact • Creation of SHE Leads Programme for women employees Encouraging Inclusivity • 20 high-potential women candidates to be groomed for We have undertaken steps to improve workforce inclusivity performance and in FY 2023, HZL, BALCO and VAL Jharsuguda units have inducted 20 transgender employees. We remain committed to working on this aspect in FY 2024 and beyond. 100 CXO roles • Recognition from associations such as Society for Human Resource Management (SHRM) and People First Key Highlights, FY 2023 Revitalising sustainability framework Enhancing transparency In FY 2023, we undertook work to refresh our policies and standards that are part of the Vedanta Sustainability Framework (VSF). The refresh will simplify the framework, better align the standards to ICMM requirements and reflect the revised ambition of our ESG programme. Incentivising ESG performance We have kick-started discussions to better embed ESG metrics in executive compensation. Currently, HSE/ESG performance constitutes 15% of employees’ performance pay. Climate change considerations are now a part of our employees’ stock option scheme (ESOS). However, based on benchmarking, it has been decided that this linkage needs further refining and we plan to introduce an updated methodology in FY 2024. Transparency and disclosures form the foundation of all dialogue. We release several ESG disclosures, which include the Annual Integrated Report, Annual Sustainability Report, Annual TCFD Climate Report, and the newly-constituted Business Responsibility and Sustainability Report. All these reports align with global reporting standards such as GRI, TCFD, and the IR Framework. This year, we will be releasing our 15th Sustainability Report. The quality of our disclosures and the underlying improvements in our ESG governance and performance are evident in rating upgrades across multiple agencies. This provides our stakeholders an independent assessment, that we are headed in the right direction. We will continue to benchmark against these frameworks, to remain aligned with global expectations around ESG. More details can be found in the governance section of the report B B B C C 7 4 4 4 6 . 9 3 0 3 % 7 9 % 8 9 % 9 9 % 8 9 % 8 9 % 9 8 % 6 8 A A B B B B C FY 2020 FY 2021 FY 2022 VEDL FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 VEDL HZL VEDL HZL VAL VEDL HZL VEDL High Risk category HZL Medium Risk category #3 | M&M Index HZL VEDL #6 | M&M Index HZL rated A for CDP climate & CDP water Lower the better Key rating highlights MSCI • No significant votes against directors • Incentivisation of sustainability • Performance in executive pay policies Sustainalytics DJSI CDP • • Improvement from severe to high risk Improved management of ESG risks was cited as the reason for better rating • Part of the Sustainability • B-rating for CDP World Index • Only Indian company to be added in 2022 • Also, part of the ‘Emerging Markets Index’ Climate & CDP Water • CDP Water disclosures made for the first time 101 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 PEOPLE AND CULTURE TRANSFORMING TO UNLEASH PEOPLE’S POTENTIAL The Group has been featured in the Top 10 happiest Workplaces by Business World from over 100 nominations. The Group has also been awarded the Best Employer in India by kincentric. 102 PEOPLE AND CULTURE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS At Vedanta Limited, we are empowering people by providing them with a work environment to thrive and grow. We are ensuring this with dedicated efforts around workplace transformation, a key pillar of our ESG purpose and framework. We are implementing pioneering initiatives around health and safety and promoting diversity, equity and inclusion. We are creating an ecosystem of equal opportunities in employment and development, and recognition to keep them motivated and incentivised. Our transformational approach is beginning to unlock the potential of our workforce and is driving long-term benefits for the organisation by enabling a rich mix of skills, experience and diverse perspectives. Promoting diversity, equity and inclusion Diversity and inclusion are at the core of our people strategy. It is our constant endeavour to promote gender parity and inclusivity across all levels, from the senior leadership and decision-making bodies to SBUs and enabling functions. This is manifest in our unique talent pool, which includes people from diverse geographies, minorities, ethnicities and cultures. We also strive continuously to reinforce our position as an equal opportunity employer. We are fostering an LGBTQ+-friendly workplace and ensuring their inclusion by identification of roles, sensitisation, creation of infrastructure and onboarding talent. As of now, there are 25 transgender employees engaged in operations as well as enabling functions. Adopting a 3-tier approach We have launched a sensitisation drive targeting gender, sexual orientation, physical ability, region, and other dimensions of overall diversity, equity and inclusion. It is structured around a 3-tier approach, covering CXOs, managers and front-end supervisors. We have tied up with external experts and our target is to cover 2,000+ managers and 300+ CXOs in the first phase of this exercise. Ensuring regional diversity Our V-Engage initiative is aligned with our efforts of promoting regional diversity within the organisation. It targets onboarding talent from under-represented and underprivileged sections, with a special focus on the Northern and North-Eastern regions of the country. 100 Qualified, high-potential and hard-working women selected through an exclusive women's talent campus hiring drive Steering gender diversity We unveiled Phase 3 of V Lead, our flagship women’s leadership development programme, in December 2022, reflecting our strong and continuous commitment to gender diversity, inclusion and women empowerment. As part of the initiative, 120 promising young women are being groomed for CXO positions, spanning operational and enabling roles across Vedanta’s global business units. The exercise is aimed at making them a part of key decision-making bodies at Vedanta. We have empanelled multiple women’s colleges to ensure women’s representation at all levels and tap into the right talent pool, specifically in STEM roles. An exclusive two-day campus drive was held at Banasthali Vidyapith Campus, Rajasthan, to hire qualified women candidates in engineering and management disciplines. The senior leadership panel ran a structured process and selected 100 high- potential girls. Building tomorrow's leader 103 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 500+ Talent identified and elevated across functions covered through various talent development programmes Professional leadership and collective decision- making As a professionally managed company, Vedanta Limited has a well-structured management framework, with a Management Committee (ManCom) as a collective decision-making body at both Company and business levels. The businesses are further independently led and run in a federated manner by their respective CEOs. Recognising excellence and rewarding meritocracy We are fully cognisant of the importance of keeping our people motivated and passionate to drive the organisation’s long-term success. We have accordingly adopted a well-defined methodology to reward the efforts of our people and business partners. Our best-in-class and globally benchmarked people practices, as well as reward programmes, keep them inspired and incentivised to deliver their best. They also receive recognition from our Management and Board for going the extra mile to support the business. These include the Chairman Individual Awards, Chairman Award for Business Partners, Leadership Excellence Award, Sustainability Award, and the Chairman’s Discretionary Award. High-performing employees are rewarded through incentive schemes, development programmes and compensation re-structuring practices. During FY 2023, we introduced stock options for all our young campus hires as well. Our appraisal and remuneration programmes further encompass an ESG component, which correlates employee performance to safety, sustainability and carbon footprint reduction. Our best-in-class and globally-benchmarked people practices, as well as our reward programmes, help keep them inspired and incentivised to deliver their best. the next phase of our value-accretive growth. Their track record in leading a set of high-potential growth projects is an asset we value and cherish. Hiring programmes and processes As part of our overarching initiative of onboarding talent from esteemed Indian and global institutions, we are in the process of hiring 2,000 bright minds. We have adopted a multi-pronged strategy as part of this process, involving hiring quality talent focussing on diversity (gender, geography and category) and offering competitive compensation at campus along with stock options. We continue to hire top-notch talent for our flagship programmes: Vedanta Leadership Development Program (VLDP), Rank Holder Chartered Accountants, Cost Accountants, Specialists (Analysts, Data Scientists, Mining and Exploration ESG), Management Trainees (MT), Engineer Trainees (GETs), among others. Through ACT-UP (Accelerated Tracking and Upgradation Process), our flagship in-house talent development programme, we identify and nurture high performers, and develop leaders across all talent segments in the organisation. Building on Management ACT-UP, our focus in FY 2023 was on developing a robust second-in- line leadership. With our Emerging Leaders Programme, we have identified and elevated 130 leaders to deputy CXO roles at the group and SBU levels. Of these, 25% are women – a clear endorsement of our gender diversity focus. The selected leaders have been assigned senior leaders as anchors from across Vedanta Limited. As the next steps, a customised hybrid programme has been designed in association with premier B-Schools like IIM Bangalore and ISB Hyderabad. It is based on various gaps and themes that emerged from the assessments and will help make the young talent future-ready. During the fiscal under review, we curated ACT-UP for projects, mining and commercial/marketing verticals, leading to the identification of 200+ young leaders. The fresh perspective brought in by talent from line functions was leveraged by providing interested employees with an opportunity to switch functions through unique talent development initiatives, such as non-HR to HR. Attracting and retaining best-in-class talent Our human resource (HR) policies are designed to attract and retain the best global talent and subject matter experts. We take pride in our truly global work culture and our diverse workforce. We currently have some of the finest minds from over 30 nationalities working with us. Our robust global leadership is helping us steer our journey into Ensuring seamless induction for campus hires Our campus hiring emphasises excellence, gender diversity, upliftment of minority communities and adequate representation of all regions and demographics in India. We have in place a well-defined and structured system that ensures smooth and seamless induction of talent hired from campuses. PEOPLE AND CULTURE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Group Induction Programme - YUVA (Young Upcoming Vedanta Achievers) Through this programme, we welcomed 200+ campus hires from top B-Schools of the country and across the globe during the year. Through business and functional sessions held as part of the exclusively designed 4-day programme, stalwarts of Vedanta Limited and the industry shared insights, leadership advice, and their experiences with the youths. Further, the new joinees got an opportunity to understand Vedanta’s DNA and design principles, key pillars, group overview, growth story and key people practices through the CXO sessions. They were also given a glimpse of our daily operations through visits to our state-of-the-art business units in HZL and flagship CSR facilities, where they got first-hand experience of what we do for the people and planet. V-Excel (Exemplary Campus Emerging Leaders) This programme, complementing YUVA, provides each new hire with a single digitally-driven platform that helps steer their performance with the right anchoring, continuous engagement, learning and recognition through measurable KPIs at an early stage in their careers. Harnessing digital power to enhance people experience At Vedanta Limited, we are continually working towards scaling the experience of our people by leveraging digitalisation and automation. • The implementation of Darwinbox is bringing all businesses on one common platform, enabling seamless data-analytics at the group level and enhancing decision-making capabilities. In the first phase of implementation, HR workflows have been outlined, and modules of performance management, learning & development and employee helpdesk are in place. We are currently focussed on making these systems more robust while propelling change management to boost the adoption of the platform. • To further strengthen our learning & development practices, we leveraged Gurukul effectively during the year. It is a digitally-driven knowledge-sharing initiative that gives all Vedanta employees a platform to share their expertise and innovative ideas to motivate others to learn, explore and experiment. Gurukul has grown as a platform, promoting the free flow of new ideas and discussions. • Vedanta Limited has partnered with Knolskape for the first-ever, simulation-based experiential learning programme for top emerging leaders to equip them with the right skills and competencies to develop them into future CXOs. These include critical thinking, business acumen, influencing stakeholders, leading teams, future of work, digital leadership, agile working and design thinking. The participants have been identified through internal talent development initiatives, such as Management ACT-UP, Enabling ACT-UP, Emerging Leaders Programme, V-Aspire etc. The participants undergo a mix of role-play, gamified business simulation, quizzes and assessments, experience sharing, etc. Employees Receiving award 104 105 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 CORPORATE GOVERNANCE TRANSFORMING TO BECOME MORE RESPONSIBLE 106 CORPORATE GOVERNANCE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Operating in a dynamic environment, Vedanta Limited is transforming continually to ensure effective management of natural resources. It strives to ensure sustainability in order to make the nation self-sufficient. Our governance philosophy and practices are aligned with this approach. Led by our core values of Trust, Entrepreneurship, Innovation, Excellence, Integrity, Respect and Care, our governance practices constitute the core of our foundation of sustained value creation. At the same time, we adhere stringently to the principles of good governance and integrity, which help us navigate our business growth and operations ethically and responsibly, at all times. Corporate Governance Framework Our governance framework is underpinned by our robust core values. It is structured around our strong industry- leading vision, strategic mission, and the primary objective of delivering sustainable growth. Corporate Governance Philosophy Our business strategy is powered by our strong commitment to good governance, which goes beyond compliance and statutory norms. We believe that purpose- led corporate governance and ethics-led corporate behaviour are essential to our success. We look at them as the foundation on which we continue to build Vedanta Limited as not only India’s largest diversified natural resources company but also the most sustainable. Our business strategy is pillared around the twin approach of being structured as a group of entities, each with its own individual management and systems, while also concurrently functioning as a single unit oriented towards our collective purpose. We consider operating responsibly as our fiduciary duty as trustees of various capitals (financial, manufactured, intellectual, human, social and relationship, and natural). We feel this is important for Risk Management Governance Strategy, Planning & Performance Corporate Governance Framework Stakeholders ESG Integrity & Transparency Compliance & Reporting effective management of the capitals and consistent value delivery through seamless execution of our integrated value chain. Spearheaded by an involved and informed Board, we remain focussed on creating sustainable investor and stakeholder value, while staying rooted in our intrinsic value system. We draw from the insights and expertise of our illustrious, multifarious and proficient directors and are able to continuously predict and proactively manage our opportunities and risks to protect and enhance our business value. This is particularly significant in our operating space, which is underlined by volatility and dynamism, thus offering considerable scope to run a conscientious business. Composition of the Board of Directors As on 31 March 2023, the Board comprises eight members, as listed below: S. No. Name Designation 1 2 3 4 5 6 7 8 Mr. Anil Agarwal Mr. Navin Agarwal Non-Executive Chairman Executive Vice Chairman Ms. Padmini Sekhsaria Non-Executive Independent Director Mr. Dindayal Jalan Non-Executive Independent Director Mr. Upendra Kumar Sinha Non-Executive Independent Director Mr. Akhilesh Joshi Mr. Sunil Duggal Ms. Priya Agarwal 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 31 March 2023) 70 62 47 66 71 69 60 33 107 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Number of Directors (Age) Number of Directors (Gender) ESG Ratings By focussing on sustainability and ESG as business imperatives, we consistently aim to improve our ESG ratings. 06 02 02 CORPORATE GOVERNANCE INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS B B B C C 7 4 4 4 6 . 9 3 0 3 % 8 9 % 9 9 % 8 9 % 8 9 % 7 9 % 6 8 % 9 8 A A B B B B C FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 VEDL VEDL HZL VEDL HZL VAL VEDL HZL VEDL High Risk category HZL Medium Risk category HZL #3 | M&M Index VEDL #6 | M&M Index HZL rated A for CDP climate & CDP water Lower the better MSCI Sustainalytics DJSI CDP • No significant votes against directors • Incentivisation of sustainability Performance in executive pay policies • • Improvement from severe to high risk Improved management of ESG risks was cited as the reason for better rating • Part of the Sustainability • B-rating for CDP Climate & World Index CDP Water • Only Indian company to be • CDP Water disclosed for added in 2022 1st time • Also, part of the ‘Emerging Markets Index’ G20/OECD Framework Alignment We align ourselves with the G20/OECD Principles of Corporate Governance by: Ensuring the basis for an effective corporate governance framework with: Guaranteeing the rights and equitable treatment of shareholders and key ownership functions with: • Business alignment with free market practices, anti-competitive policies and fair competition • Assurance of rights and equitable treatment of all shareholders, including minority and foreign shareholders • Compliance with all statutory requirements as listed by • Implementation of specific channels for shareholders to 06 Between 30-50 years Above 50 years Male Female ESG Governance As part of our strong and sustained commitment to ESG, we have implemented a uniform ESG governance structure across the organisation. The ESG Committee, together with our Group Sustainability and ESG function, is mandated with the responsibility to activate, mainstream and monitor initiatives under the ‘Transforming for Good’. We have also established dedicated forums for regular management and oversight at all levels, in addition to ESG-themed communities at each BU and SBU to own projects and drive their timely implementation. In conducting its business, the Board is supported by: Board Governance As we grow from strength to strength, we continue to raise the bar of performance across our governance practices. These practices range from our ground- breaking ESG commitments to best-in-class disclosure practices, Board independence, diversity and inclusion, alignment to globally accepted norms and policies, as well as our emphasis on running a digitally-enabled, technology-led business. Our strong governance practices manifest our future transformation journey, with ‘responsible change’ as a core mandate. It is our constant endeavour to not only stretch ourselves more to ensure enhanced growth and value creation but also set newer benchmarks for the industry and peers. We continue to be change-makers in everything we do, with good governance as the cornerstone that empowers us in our transformational efforts. Our Board ensures the implementation of the strategic objectives of the Company. It guides the management to fulfil the commitments made to various stakeholders while upholding the principles of ethical business conduct and responsible growth. Through its prudence, valued counsel, compliance with Group values, and prioritisation of ESG principles, the Board at Vedanta Limited ensures the viability of the Company, and thus its ability to deliver sustained value to its stakeholders. By overseeing the conduct of business with strict adherence to ethics and responsibility, the Board continues to enhance the prosperity and long-term viability of the Company. Established Committees SEBI, MCA and other regulators voice their concerns Risk Management Framework Vedanta Sustainability Framework and Vedanta Sustainability Assurance Process (VSAP) Code of Business Conduct and Ethics, and various other policies and practices adopted by the Group • Adoption of an informed, diverse, relevant and • Conduct Annual General Meetings as per existing norms experienced Board, enabling integrity as a standard from the top, with collective and specific responsibility • Regular publications for apprising shareholders regarding performance, strategy, governance etc. Facilitating the role of stakeholders in corporate governance with: Safeguarding disclosure and transparency with: • Focus on compliance-led periodic disclosures and • Consistent focus on stakeholder relations, as well as transparent reporting suite continual engagement with investors, clients, customers, employees, bankers, and regulators • Adherence to specific policies for vendors, suppliers and business partners • Voluntary reporting on globally accepted principles and frameworks, such as Integrated Reporting, GRI, TCFD, BRSR etc. • Engagement of external independent auditors for • Diligence towards health, safety, well-being and growth- financial and non-financial information focussed employee policies • Institutionalisation of strong whistle-blower policy and vigil mechanism • Emphasis on social responsibility and welfare initiatives in consultation with communities 108 109 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 AWARDS RECOGNISED FOR EXCELLENCE Environment and Social Sr. No Recipient BU/ Location Name of the Award Category/Recognition AWARDS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS HZL-Kayad Mines 6th National Conclave on Mines and Minerals Awards Golden Peacock Global Award Confederation of Indian Industry The Institute of Chartered Accountants of India Kincentric Best Employer Award Operational and Business Excellence Sr. No Recipient BU/ Location Name of the Award Category/Recognition 1 2 3 4 5 6 7 8 HZL - Dariba Smelter HZL HZL HZL VAL-J VAL BALCO 1 2 3 4 5 6 7 8 9 10 11 12 Vedanta Limited Vedanta Limited Vedanta Limited Golden Peacock Global Award Institute of Chartered Accountants India TIOL National Taxation Awards 2022 HZL HZL HZL HZL VAL-J VAL VAL-L VAL-J VAL-J S&P Global Platts Global Metal ‘Industry Leadership Award’ League of American Communications Professionals CII-EXIM Bank Awards for Business Excellence 2022 NCQC - National Convention on Quality Concepts IMC Rama Krishna Bajaj Excellence Award The Economic Times Energy Leadership Awards 2022 Golden Peacock Award CII 23rd National Award for Energy Excellence SEEM National Energy Management Awards 13 VAL-J International Convention on Quality Control Circle Awards Golden Peacock National Quality Award 14 15 CII - Star Champions Awards 2022 16 HZL - Chanderiya CPP Mission Energy Foundation Award 17 Quality Circle Forum of India Awards Cairn - RJ Oil Sterlite Copper VAL-J Excellence in Corporate Governance Silver Awards in Excellence in Financial Reporting Silver Award for Best Tax Practices among large corporates Base, Precious and Specialty Metals Integrated Annual Report FY 2022 ranked #40 Worldwide and Gold Award Platinum Award Won 39 Awards Excellence in Manufacturing and Quality Outstanding Contribution in Energy Sector Innovation Management Excellent Energy Efficient Unit Smelters Platinum Award - Smelter 1 and CPP; Gold Award - Smelter 2; Silver Award - IPP Won 3 Gold Awards for Excellence in Business and Quality Excellence in Quality Management Star Champion - Innovative Kaizen Category Efficient Fly Ash Management in Northern Region 25 Awards at 36th National Conventional Quality Concepts People Sr. No Recipient BU/ Location Name of the Award Category/Recognition Vedanta Limited Vedanta Limited HZL Kincentric Best Employer Award – India 2022 Great Place to Work Award People First HR Excellence Award 2022 1 2 3 4 5 6 7 8 BALCO VAL-J BALCO BALCO BALCO 9 10 Cairn ESL Golden Peacock Award Happiest Workplace Award Happiest Workplaces Award 2022 W.E. Global Employees Choice Award 2022 Titan Award People First HR Excellence Awards 2022 ASSOCHAM Work Vision - Annual HR Excellence Award 2022 11 Cairn The Economic Times Human Capital Awards Workplace Excellence India’s Best Employer among Nation Builders Leading Practices in Diversity & Inclusion Initiatives and Leading Practices in Talent Management HR Excellence Excellence in Workplace Responsibility Highly compassionate, positive and happy work culture Large Size Category and Millennial Category Platinum Award in Human Resource Manufacturing Leading Practices in Technology Deployment in HR Managing Organisational Change & Excellence through Innovative HR Practices; Effective Drivers of Recruitment, Engagement & Retention Excellence in Change Management 9 10 11 VAL-L VAL-J Cairn 12 Cairn 13 ESL VAB 14 15 HZL 16 HZL 17 18 VAL-J VAL-L Health and Safety Sr. No Recipient BU/ Location 1 2 3 4 5 6 7 8 BALCO VAL-J VAL-J VAL-L Cairn VAB VAL-J BALCO Digitalisation Sr. No Recipient BU/ Location 1 2 3 4 5 HZL HZL VAL-L VAL VAL-J GreenCo Gold Certified S&P Global Platts Global Metal ‘Industry Leadership Award S&P Global Corporate Sustainability Assessment 2022 Indian Companies Climate Leadership Rankings ‘Excellence in Fly-ash Utilization’ awards Kalinga Environment Excellence Award CEE Environment Excellence Award India CSR Award - 2022 Performance Awards at CII Energy Conclave Golden Peacock Occupational Health & Safety Award for Occupational Health Frost & Sullivan, Teri - Sustainable Corporate of The Year Award Annual Greentech CSR India Awards, 2022 India CSR Leadership Award 2022 CDP (Carbon Disclosure Projects) CDP (Carbon Disclosure Projects) Fame India Awards Golden Peacock Award 2022 5-star rating for Exemplary performance in the implementation of a sustainable development framework Environmental Stewardship ‘Corporate Social Responsibility’ Among the Top 3 Companies 4th by ET Edge and Futurescape Efficient management of fly-ash by both the Thermal Power Plant and Captive Power Plant Environmental Sustainability Excellence in Environmental Sustainability - Fly Ash Utilisation Leading healthcare and education initiatives Environment & Sustainability/Energy Management Occupational Health and Safety 1st runner up Excellent initiatives on ensuring better healthcare for the community First Place for Integrated Village Development ‘A’ rating for Transparency on Climate Change Supplier Engagement Leader Platinum Award for Fire and Security Excellence Excellence in CSR Name of the Award Category/Recognition CII National Safety Practices Apex India Occupational Health and Safety Award Grow Care India Awards Fame National Award 2022 FICCI Road Safety Awards IFSEC INDIA EXPO 2022 - CSR Security Initiative Excellence Award Fame India Awards Global Road Safety Award 2023 Platinum Award Platinum Award in Occupational Health and Safety; Gold Award in Best Fire Safety Platinum Award in Occupational Health and Safety; Gold Award in Fire Safety Excellence in Occupational Health and Safety in Mining Industry Special Jury Award for Journey towards Excellence in Road Safety Excellence in CSR Gold Award for Road Safety Excellence in Safety Culture Name of the Award Category/Recognition Data World Summit and Awards 2022 Automated Data Management Award CIO Excellence Award Manufacturing Today India Conference and Awards Frost & Sullivan's Awards Best Data Solution of the Year - Manufacturing Economic Times Data Conclave Leading Practices in Emerging Technology Leading Technology and People Initiatives Certificate of Merit - Artificial Intelligence in the Manufacturing Sector 110 111 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 VEDANTA LIMITED Integrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED INTEGRATED REPORT REPORT STATUTORY REPORTS FINANCIAL STATEMENTS MANAGEMENT DISCUSSION AND ANALYSIS MARKET REVIEW Global Economy: The global economy faced several challenges in CY 2022, starting from the initiation of the Russia-Ukraine war, supply chain disruption, high inflation, and high key policy rates by the central banks. Global inflation remained a matter of concern in most of the economy, which reached a multi-year high of 8.7% in CY 2022. Monetary tightening by the central banks across the world helped bring the trajectory downwards. The unwinding economic events weighed down global economic growth prospects. World economic growth in CY 2022 is estimated to have declined from 6% in CY 2021 to 3.4%, as per IMF. Commodity prices eased the early gains of CY 2022 amidst supply chain issues and China’s Zero Covid policy due to the demand slowdown. Metal prices, however, stabilised following China’s reopening and measures to revive its economy and retracing inflation in advanced economy like USA and EU. The Indian economy performed exceptionally well compared with the rest of the world. India is set to remain the bright spot in CY 2023 with a potential to contribute 15% to the global GDP growth, according to IMF. Indian economy is projected to grow at 5.9% in FY 2024[1] after having grown at an estimated 6.8% in FY 2023, to be among the fastest growing major economies 112 113 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Europe's fight against the repercussions of war Europe was significantly impacted by the war, which led to high energy and food prices created by the supply- chain disruption. This stretched the purchasing power of the consumers while also impacting the manufacturing sector, that led to production cuts. In Q4 CY 2022, the energy crisis improved, supported by high gas inventory levels, favourable weather conditions, and the central bank’s monetary policy tightening, which eased inflation. IMF estimates the Euro area to have grown by 3.5% in CY 2022[1]. The monetary tightening is expected to limit the GDP growth in CY 2023 to 0.8% before increasing to 1.4% in CY 2024. US Economy strong against recession fear Inflation in the world’s largest economy soared to a 40-year high, mainly driven by low labour participation and supply-chain crisis influenced by the external environment. The subsequent monetary tightening by the Federal Reserve Bank impacted the country’s economic growth. Rising fed rates led to a further strengthening of the US dollar, thus stretching the current account deficit of import-dependent countries. Despite the negative outlook, the US economy has performed better than expected. The inflation level which reached 9.06% in June 2022 declined to 6.04% in February 2023[2]. The US economy grew by 2.1% in CY 2022 but is expected to decelerate to 1.6% in CY 2023 and 1.1% in CY 2024 [1]. Central Banks' Interest Rates (%) . 5 6 4 5 0 8 3 . 5 6 3 . 0 5 3 . 0 5 3 . 5 2 4 . 0 6 3 . 5 2 0 . 1 5 2 0 . 0 1 0 . 0 India USA China EU S. Korea UK Australia Till Dec-2021 Mar-2023 World Bank Commodity Index (Base: Dec-2021) (%) 160 145 130 115 100 85 70 2 2 - n a J 2 2 - b e F 2 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F Energy Agriculture Fertilisers Precious Metals Metals & Minerals China’s reopening to drive global economy The Chinese economy dealt with multiple challenges in CY 2022, including the real estate sector slowdown, severe COVID-19 infection, and its mitigation with Zero-COVID Policy. Unlike other countries, its central bank loosened the monetary policy to encourage domestic growth, in addition to the stimulus package to boost consumption. China’s manufacturing activity after facing a slowdown in CY 2022 with a growth of 3% is coming out strong and is projected to grow by 5.2% in CY 2023 and 4.5% in CY 2024 [1]. Global Economy Outlook: Performance of the global economy was better than earlier projections, given the lower-than-expected severity of the Russia-Ukraine war and high energy prices. Manufacturing PMI, which fell below the 50-level mark is moving up in most economies. China’s re-opening has further improved the expectation of increased economic activities, generating positivity for the global economy. Inflation levels in most of economies peaked, but expected to fall to 6.6% in CY 2023, improving global financial conditions and business sentiment. World's Retail Inflation in 2022 (%YoY) S&P Global Manufacturing PMI (%) IMF projects the global economy to grow by 2.8% in CY 2023 before rebounding to 3% in CY 2024, though the worries of war and high inflation still persist [1]. 12 10 8 6 4 2 0 60 57 54 51 48 45 2 2 - n a J 2 2 - b e F 2 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F 2 2 - n a J 2 2 - b e F 2 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F Global GDP Growth (%YoY) 8 6 . 3 6 . 9 5 . . 2 5 5 4 . 3 1 2 . 6 1 . 1 1 . 3 1 . 1 1 . 1 6 2 . 3 1 . 7 0 . . 8 1 1 1 . . 1 0 - . 4 3 . 8 2 3 China EU India UK USA Global China USA Europe India India China USA Japan France Germany World Source: CEIC, S&P Global, World Bank 2022 2023 2024 Source: IMF 114 115 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Indian Economy: The Indian economy performed exceptionally well compared with the rest of the world. India is set to retain its bright spot in CY 2023 with a potential to contribute 15% to the global GDP growth, according to IMF. In December 2022, India also assumed G20 presidency with an ambition to unite the world under the theme ‘Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future". This is an opportunity to showcase the nation’s global leadership amidst growing uncertainty and economic crisis. India’s manufacturing sector also outperformed the rest of the world, projecting the country as a potential manufacturing hub. Stable political conditions, supportive policy schemes, strong domestic consumption and growing presence of skilled professionals support this ambition. India’s manufacturing PMI remained above the 50-level mark through the year, indicating positive performance. India’s export, including services and merchandise touched US$750 billion in FY 2023 supported by robust policy implementation by the Indian government. GST collection also reached `18.1 trillion, a year-on-year growth of 21.4% in FY 2023[6]. Other economic indicators like non-food credit, automobile sales and electricity consumption have also registered robust growth. These indicators are well-supported by consumer sentiment indices, which witnessed consistent monthly year-on-year double digit growth[6]. India’s rising retail inflation was of concern. Fiscal stimulus support and additional monetary support resulted in the CPI level crossing RBI’s upper tolerance levels. Sustained vigilance and multiple rate hikes by the RBI, resulted in repo rate increasing from 4% to 6.5% in February 2023. This significantly controlled the CPI level; from a peak of 7.8% in April 2022 [7], it reached below the upper tolerance limit in November and December of 2022, before reaching 6.4% in February 2023 [8]. Policy initiatives by the Government of India (GoI) The GoI’s focus to make the country an attractive destination for business has been a key enabler of robust economic performance. The capital expenditure allocation of `10 lakh crore for FY 2024, an increase of 37.4%, YoY, has been an exceptional step. The approach towards infrastructure development and inclusive growth of the country is setting the foundation for multiple years of strong growth. The World Bank has emphasised the collaboration between nations to boost global GDP growth in the current decade. GoI has taken steps in this direction, establishing bilateral trade relations through Free Trade Agreements with Australia and UAE, vastly expanding the market for domestic manufacturers. The upcoming negotiation with the UK, EU, and GCC nations are expected to further expand the horizon. As India aspires to be the global manufacturing hub, these trade Manufacturing PMI: India vs. Global Energy Requirement (billion kWh) 60 58 56 54 52 50 48 46 44 160 140 120 100 80 60 40 1 2 - r a M 1 2 - n u J 1 2 - p e S 1 2 - c e D 2 2 - r a M 2 2 - n u J 2 2 - p e S 2 2 - c e D 3 2 - r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D n a J b e F r a M India Global 2020-21 2021-22 2022-23 Source: RBI, CMIE 116 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Consumer Confidence Survey of RBI Non-food Credit Growth (%, YoY) 120 100 80 60 40 20 0 25 20 15 10 5 0 8 1 - r a M 8 1 - l u J 8 1 - v o N 9 1 - r a M 9 1 - l u J 9 1 - v o N 0 2 - r a M 0 2 - l u J 0 2 - v o N 1 2 - r a M 1 2 - l u J 1 2 - v o N 2 2 - r a M 2 2 - l u J 2 2 - v o N 1 2 - r p A 1 2 - n u J 1 2 - g u A 1 2 - t c O 1 2 - c e D 2 2 - b e F 2 2 - r p A 2 2 - n u J 2 2 - g u A 2 2 - t c O 2 2 - c e D Current Situation Index Source: RBI, CMIE deals will ensure a smoother transformation of the global supply chain. The removal of export duty on iron ore above 58% Fe grade and steel has encouraged the sector to have global competency amid commodity volatility. The National Logistic Policy, another ground-breaking policy initiative by the GoI targeting the complex logistic system, is likely to make India more efficient in project implementation. The plan to reduce logistics cost from 14% to less than 10% is expected to expand the scope of government spending and streamline government operations. Indian Economy Outlook Although global projections of economic growth for CY 2023 loom on uncertainties, India on the other hand is expected to outperform. As per IMF, Indian economy is projected to grow at 5.9% in FY 2024[1] after having grown at an estimated 6.8% in FY 2023, to be among the fastest growing major economies. It further projects India and China to contribute to half the global growth in CY2023. India’s economic growth will be driven by robust domestic demand supported by the government’s continued thrust on infrastructure spending. However, external challenges of global economic slowdown, geo-political scenario and energy price uncertainties may keep the Indian economy vigilant. India’s growth outlook by domestic and global agencies Agency/Institution Economic Survey (GoI) RBI IMF World Bank Month of Release January 2023 February 2023 January 2023 January 2023 Asia Development Bank (ADB) December 2022 November 2022 January 2023 December 2022 March 2023 OECD S&P Global Ratings Fitch Ratings Nomura Source: CMIE References: 1. IMF, WEO, January 2023 5. World Bank, The Pink Sheet 2. U.S. Bureau of Labor Statistics 6. CMIE 3. CEIC 4. S&P Global 7. RBI, Monetary Policy Committee 8. MOSPI FY 2022-23 FY 2023-24 7.0% 6.8% 6.8% 6.9% 7.0% 6.6% 7.0% 7.0% 6.6% 6.5% 6.5% 5.9% 6.3% 7.2% 5.7% 6.0% 6.2% 5.3% 117 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 SEGMENT OVERVIEW ZINC Overview The year kicked off on a positive note with zinc prices hovering around US$4,000-4,400 per tonne (/t) levels as supply chain got impacted amidst the Russia-Ukraine war and China’s zero covid policy led lockdown. However, the market was subject to volatility throughout the year; zinc prices even touched US$2,682/t level in November 2022. It closed at US$2,907/t during the end of March 2023. The global refined zinc demand contracted by 3% to 13.6 million tonnes in CY 2022, largely due to a fall in Chinese demand. At supply level, the refined zinc production fell by 2.6% in CY 2022, due closure of several smelters globally for care and maintenance as the energy prices increased. Consequently, the global zinc warehouse stocks also fell during this period. In FY 2023, the total tonnage of zinc at Shanghai Futures Exchange (SHFE) warehouses and LME fell to 97 kt and 45 kt respectively during the end of March 2023. Indian refined zinc demand, however, was robust and is estimated to have increased by ~3% in CY 2022 mainly driven by demand from the infrastructure and Galvanising industry. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Demand outstripped supply and lead inventories fell to historically low levels. In first nine months of FY 2023, lead inventory in LME declined by ~36% to 25 kt and that in SHFE by ~60% to 35.2 kt. In India, the refined lead market, including both primary and secondary markets, increased 8.2% to 1.2 million tonnes in CY 2023; the primary lead market demand was ~250 kt. 550 million ounces (Moz) in CY 2022, driven by vehicle electrification, government’s expanding commitment to green infrastructure and rising 5G adoption. FY 2023 started positively with London Bullion Metals Association (LBMA) silver prices reaching US$24.54 per troy ounce (/toz) in April 2022. However, with the market volatility, the prices declined to US$17.77/toz during September 2022. The prices picked up gradually to reach US$23.75/toz in January 2023 and stood at average US$21.9/toz during March 2023. Market Drivers The domestic refined lead consumption is expected to grow by 4.2% in CY 2023. With faster consumption growth against minimal mine supply growth, the markets are expected to be tight with no surplus. Increasing urbanisation and industrialisation in developing countries along with rising automotive consumption are expected to be the key drivers for lead demand. In the domestic market, the demand for lead is expected to be robust, largely on the back of continued demand momentum in automotive sector, which witnessed excellent growth in the passenger vehicle and two-wheeler sales in FY 2023. The demand from the industrial battery segment is also expected to remain robust with battery replacements in data centres, banks, ATMs and other critical applications gathering pace. Given India’s ambitious renewable energy focus, emerging areas like energy storage for electricity generated from photovoltaics are likely to add to the demand. Products and customers HZL is a leading primary lead producer in India; it produces 99.99% purity lead ingots. In FY 2023, it had ~85% share of the primary domestic market. It sold 91% of its production in domestic market and exported 9% to other geographies. Considering the opportunities in the Indian market, the Company intends to become 100% domestic market focussed through new customer acquisition, leveraging e-commerce platforms and introducing lead alloys. SILVER Overview CY 2022 saw the silver demand reach new highs driven by strong industrial demand, jewellery and silverware offtake and physical investment. The global silver demand rose by 17% in CY 2022 to 1.24 billion ounces (Boz). The industrial demand for silver increased by 2.6% to Market Drivers Global silver supply is expected to rise by 4% to 1.005 Boz in CY 2023. Silver mine production is expected to grow by 5% to reach 0.873 Boz in CY 2023, due to new silver mines in Mexico and increased output from Chile gold operations with high silver content. The silver recycling growth is expected to be 3%. Global silver demand, though, is expected to dip to 1.15 Boz in CY 2023. The decline would be primarily on account of softness in jewellery and physical investment demand. The long-term prospects for silver investments (both physical and ETF) remain strong. Silver coin demand in India is also encouraging. While it has largely been driven by gifting and religious purposes, which insulates it from price fluctuations, its demand has increased in recent years because of the different product offerings and marketing efforts from mints and refineries. However, global industrial demand for silver is expected to increase by 2.6% to 550 Moz. The solar panel manufacturing industry has been increasingly consuming silver, driven by government’s support in terms of production linked incentives (PLI) to promote the usage of renewables. The use of silver for vehicle electrification and creation of charging stations is also likely to rise. Products and customers HZL is India’s only primary silver producer and ranks 5th globally among the top silver producing companies. HZL sells silver exclusively in the domestic market. It is used in industry (electrical contacts, solder and alloys, and pharmaceuticals), jewellery and silverware. The Company also offers spot sales of silver through e-auction to reduce manual intervention, thus ensuring equal opportunity for buyers to compete along with complete price transparency. Market Drivers The global zinc demand is expected to grow by 3.5% in CY 2023 majorly driven by stronger offtake from China and India. In India, the zinc demand is expected to increase by 10% in CY 2023 driven by demand from infrastructure and automobile sector. In domestic market, Indian Railways has been a key demand driver for zinc. With a focus on safety and speed, it has introduced 18 Vande Bharat trains till now (another 478 trains planned) and is also working on different mechanisms to protect rail network from corrosion. Strong focus on developing road, power generation and transmission and 5G related telecom infrastructure are likely to create demand. Together, these are expected to bolster zinc consumption in India. Products and customers Hindustan Zinc Limited (HZL) is the largest primary zinc producer in India. In FY 2023, it had 77% domestic market share; it sold ~60% of its refined zinc volume in the domestic market and exported rest of the volume to South-East Asian and Middle Eastern markets. Over 70% of the zinc demand in India comes from galvanising steel, predominantly used in the construction and infrastructure sectors. HZL has a strong portfolio aligned to these needs comprising continuous galvanising grade, electroplatting grade and two grades of zinc for use in die-casting alloys, which make it an attractive player. 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 VAP mix to 23% of total zinc sales in FY 2024, up from 16% in FY 2023. LEAD Overview Historically, lead is believed to be insulated from cyclical demand movements compared to the other metals. However, lead prices in FY 2023, especially during first half of the year, experienced significant volatility. Starting with a 12-month high of US$2,471/t in April 2022, lead prices fell to a 23-month low of US$1,754/t in September 2022. The prices improved in 2H FY 2023 driven by China’s reopening. LME price stood at around US$2,100/t level at the financial year end. Global lead market, including primary and secondary markets, saw demand growth of 1.5% to 13.4 million tonnes in CY 2022 compared to 4.3% growth in CY 2021. 118 119 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ALUMINIUM Overview The aluminium market during CY 2022 started on a positive note with LME prices steeply rising to all-time high of US$3,849/t in March 2022. However, the market was significantly impacted by volatility in macroeconomic conditions during the year amidst the ongoing Russia- Ukraine war, European energy crisis, and high inflation in the key markets. Consequently, the market witnessed price declines as the year progressed; LME price stood at around US$2,350/t level during the end of March 2023. In CY 2022, global primary aluminium production increased by 2.5% to 69 million tonnes while demand is estimated to have increased by 0.4% to 69.2 million tonnes resulting in global deficit of 0.2 million tonnes. In China, the largest market, primary production increased by 4.5% while demand increased by 1.2%. In rest of the world (RoW), both production and consumption were flat. In India, the domestic demand is likely to have surged 17% from ~3.9 million tonnes in FY 2022 to around 4.6 miliion tonnes in FY 2023; majorly driven by primary aluminium demand on robust economic growth with high industrial and manufacturing activities supported by government initiatives. Market Drivers Global total aluminium demand is expected to increase at a CAGR of ~3% from 96 million tonnes in CY 2022 to 122 million tonnes in CY 2030 driven by multiple factors. The decarbonisation transition in transportation and packaging industry is expected to push aluminium demand. Aluminium consumption from renewable energy and electric vehicle sectors is expected to increase from 6 million tonnes in CY 2022 to 16 million tonnes by CY 2030. CY 2023 is expected to witness demand improvements from both China and rest of the world. China’s primary aluminium demand is expected to increase by 2-3% mainly due to government stimulus policies. Indian domestic aluminium demand is likely to be driven by key consuming segments like electronics and appliances as well as anticipated boom in renewable, defence, and aerospace sectors. Products and customers Vedanta is India’s largest primary aluminium producer with an annual capacity of ~2.3 million tonnes. It has a market share of 41% (as of March 2023) in the domestic market; its domestic sales volume increased by 28% in FY 2023. The Company also has a sizeable OEM base globally that consumes its value-added products. The Company’s product portfolio includes aluminium ingots, primary foundry alloys, wire rods, billets, and rolled products which cater to varied industries globally such as power, transportation, construction and packaging, defence, renewable, automobile and aerospace among others. In line with the evolving market needs and the focus on value creation, the Company has been steadily strengthening its market position with focus on value-added product (VAP) portfolio which currently accounts for ~38% of its total aluminium sales globally. The Company is working on projects to increase its total aluminium capacity to 3 MTPA and VAP mix to ~100% along with improvement in backward integration. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS OIL AND GAS Overview According to the US IEA, the global oil supply increased by 4.7 million barrels per day (mbpd) to 100.1 mbpd in CY 2022, with the US, Russia and the Organisation of the Petroleum Exporting Countries (OPEC) being the major contributors. At the same time, the global oil demand increased by 2.2 mbpd, driven by both Organisation for Economic Co-operation and Development (OECD), primarily the US, and non-OECD countries, primarily India, and the Middle East. Indian oil demand increased by 8%. Crude production and consumption (mbpd) Particulars CY 2021 CY 2022 World production OPEC crude production World consumption 95.4 26.4 97.7 100.1 29.1 99.9 Change, CY 2021 vs CY 2022 4.7 2.7 2.2 (Source: US EIA) Oil market was subject to elevated volatility amidst multiple macro and geopolitical events in CY 2022. This included Russia’s invasion of Ukraine in late February 2022 and the ensuing sanctions, embargoes, and price cap on its oil imports. Further, recessionary and inflationary pressures on the global economy, China’s low oil demand due to stringent zero-COVID policies, and the transformed crude and product trade flow also impacted the market. The global oil market adjusted to these shocks and physical supplies were marginally hit. The losses in Russian supplies were limited due to unwinding of OPEC+ cuts, release of oil from the strategic petroleum reserve (SPR), and the ability of Russia to redirect its exports from Europe to other parts of the world. India emerged as a key destination, with share of Russian crude in its overall import basket increasing from 0.2% levels to highs of ~27% in January 2023. These elevated uncertainties shaped supply demand balance and market expectations, as partly reflected in extreme price movements in CY 2022. During majority of the first half of CY 2022, crude oil prices traded above US$100 per barrel (/ bbl). However, it softened gradually during second half of CY 2022 and returned to pre-Russia-Ukraine war level of US$70-75/bbl by March 2023. Market Drivers As per OPEC, the global oil demand is expected to increase by 2.5 mbpd to 101.9 mbpd in CY 2023 with a potential upside coming from the opening of the Chinese economy and increased demand for jet fuel and kerosene. Global oil supply driven by the US, Brazil, Norway, Canada, Kazakhstan, and Guyana are expected to exceed demand during the first half of CY 2023. However, second half of CY 2023 is expected to be oil deficit with demand recovery and continued decline in Russian output due to the sanctions imposed. Nevertheless, large uncertainties remain over the impact of ongoing geopolitical developments, as well as the output potential for the US shale in CY 2023. According to the US Energy Information Administration (EIA), brent crude oil spot prices will average at US$83 per barrel in CY 2023. Global economic outlook uncertainty and rising crude inventory will impact crude oil prices, however, the pressure will be limited due to high demand from Asian markets. India, the world’s third largest oil consumer and the fourth largest refiner, currently meets 87% of its oil consumption and 50% of its gas consumption through imports. In CY 2023, India’s demand is projected to increase to 5.39 (+0.02) mbpd, supported by increasing airline activities and projected GDP growth of 5.6%. The government’s proposed increase in capital spending will boost construction and manufacturing activities, thereby, driving the oil demand in India. Products and customers Cairn India is the largest private oil & gas exploration and production company in India with gross proven and probable R&R of 1,151 million barrels of oil equivalent (mmboe). The Company’s crude oil is sold to public and private refineries and its natural gas is consumed by the fertiliser industry and the city gas distribution sector in India. Brent, $/bbl US announces SPR release OPEC sharply cuts output by 2.0 Mb/d 100% of the Company’s crude oil and natural gas production in FY 2023 was sold in India as per government regulation. The Company is focussed on strengthening its dominance in the Indian market, with an ambition of producing 50% of India’s oil & gas. Russia-Ukraine Conflict 2 2 - n a J 2 2 - b e F 2 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 120 121 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 POWER SECTOR Overview India is the 3rd largest electricity producer in the world after China and the US, with an installed capacity of 411 GW, as of 31 March 2023. Energy being an important input for economic growth and development, India has seen rapid growth in electricity demand over the years, in line with its economic development. In FY 2023, India’s total electricity demand grew by 9.5% to reach record highs of 1,511 billion units (BUs) while the total electricity generation grew 8.7% to 1,624 BUs. There is strong focus on creating new capacities to meet the country’s burgeoning energy demand. The Government of India (GoI) has set a vision to double the power capacity by 2030, to keep pace with the growing population, increasing electrification and per capita usage. Market Drivers According to the Central Electricity Authority (CEA), India’s annual electricity consumption is estimated to grow at an average of 7.2% per annum over next five years, driven by expansion in industrial activities, growing population, rising per capita income, and increasing electricity penetration. In line with the demand projections, the country’s installed capacity is estimated to register a 10+% CAGR during FY 2022-27. Multiple initiatives by the government are encouraging growth and investment in the power sector. This includes policy support such as delicensing the electrical machinery industry, allowing 100% foreign direct investment (FDI) and the focus on ‘Power for All’ through various schemes. This includes Saubhagya, Integrated Power Development Scheme, Deen Dayal Upadhyaya Gram Jyoti Yojana, Unnat Jyoti by Affordable LEDs for All, Restructured Accelerated Power Development and Reforms Programme, Ujwal DISCOM Assurance Yojana and National Infrastructure Pipeline. To ensure climate compatible growth, renewable energy is expected to be a preferrable mode with a target to expand its capacity to 500 GW by 2030. PLI scheme and policies like the Green Energy Open Access Rules, Energy Conservation (Amendment) Bill 2022 and renewable energy generation and utilisation (renewable purchase obligations) are incentivising this change. The Union Budget FY 2023-24 has also given due importance to renewable energy with increased capital outlay. Products and customers Vedanta has a power portfolio with a total capacity of ~ 9 GW. These power assets are at Talwandi Sabo, Jharsuguda, Korba, Lanjigarh. 37% of the total capacity is used for generating power for commercial purposes, backed by long-term power purchase agreements with state distribution companies of Punjab, Tamil Nadu, Kerala, Chhattisgarh, and Odisha. The remaining 63% power generated is deployed in captive operations at Aluminium and Zinc businesses. Vedanta has set itself a target to achieve 2.5 GW round the clock renewable energy (RE RTC) capacity by 2030 and has signed power delivery agreements for 788 MW RE RTC by the end of FY 2023. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS STEEL Overview India is the second-largest steel producer in the world. Steel is one of India’s core industries, contributing more than 2% to the GDP. In FY 2023, India’s crude steel production increased by 4% to 125 million tonnes. Indian government’s continuous focus on infrastructure building has led to an increase in Indian steel finished consumption by 13% to 119 million tonnes in FY 2023. In eastern states, steel demand was relatively higher due to the projects like Hockey World Cup in Odisha and various rail bridge constructions in the North-Eastern belts. The steel product prices, however, have been volatile. The domestic long steel prices reached highs of ~`70,000/tonne during April 2022, as raw material prices increased following the Russia-Ukraine war. However, with increase in export duty during May-December, 2022, the prices fell as domestic market-focussed producers liquidated inventories. Prices recovered back to `60,000/tonne levels during March 2023 with reversal of export duty, and subsequent uptick in export orders along with improved domestic demand. Market Drivers In FY 2024, steel demand in India is expected to be robust. The government’s push to increase steel production as per the National Steel Policy, focus to make India a US$5 trillion economy and ‘Make in India’ policy are likely to support the industry. Demand from the major sectors such as infrastructure (including railways, metros, freight corridors), construction and housing, renewables and automobiles is expected to be strong supported by Union Budget 2023-24’s push for infrastructure creation through `10 lakh crore capital expenditure outlay. Railways have been allocated `2.40 lakh crore with plans to bring 4,000 km of railway network under ‘Kavach’, a train protection system, in FY 2024. Further, increased activity in UDAN scheme to construct 100 airports, a higher allocation of `80,000 crore to Pradhan Mantri Awas Yojana and a resurgence in automobile sector (expected to attract `74,850 crore investment as part of PLI scheme) are likely to boost steel demand. Additionally, the proposed import duty reduction for machine parts used to produce Li-ion batteries in electric vehicles, may boost auto industry and hence the steel consumption. Products and customers ESL Steel Limited presently has 1.5 MTPA of steel manufacturing capacity, with projects underway to expand the capacity to 3 MTPA in FY 2024. The Company’s portfolio includes pig iron, billets, TMT bars, wire rods and ductile iron pipes which are sold across construction, infrastructure, transport, energy. In FY 2023, the Company developed various new wire rods grades, including Boron Alloy Grades in co-ordination with customers to meet their requirements. It received several notable accreditation approvals, including from UK CARES for TMT. It also secured various domestic approvals, such as blanket approval from the National Highways Authority of India and UP Metro Rail corporation, UP Bridge Corporation, Satluj Jal Vidyut Nigam, IOC Panipat Refinery, Jal Jeevan Mission, Water Corporation of Orissa and Rural Water Supply and Sanitation department. The Company further added several esteemed customers to its portfolio, from infrastructure, steel and engineering sectors. For FY 2024, ESL is prioritising developing value-added grades of wire rods, increasing alloy grades and enhancing retail segments. The Company is also focussed on digitalisation to ensure fair price recovery and conducting auctioned sales for prime grades of all products. 122 123 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 IRON ORE Overview Global iron ore prices witnessed significant volatility in CY 2022. The prices reached a peak of US$160/t in March 2022, driven by concerns over loss of significant supply in the context of geopolitical conflict in Europe. The prices gradually dropped through the year to touch a low of US$79/t in October 2022, owing to weakness in Chinese real estate sector. However, the iron ore prices firmed up in the following months and stabilised around ~US$120-130/t level in March 2023. In India, FY 2023 iron ore production was stable at ~250 million tonnes with 6% increase in domestic steel production. However, iron ore exports fell by ~23% to ~20 million tonnes as Government of India (GoI) increased iron ore export duty in May 2022. Iron ore prices moved in tandem with global price movement during early CY 2022, however, the pricing later was decoupled due to sudden increase in export duty. In November 2022, GoI reversed the additional export duty. Iron ore prices increased in March 2023 driven by a seasonally strong steel sector demand and export opportunities. Market Drivers Indian iron ore production is expected to increase to 260 million tonnes by FY 2025. Iron ore exports from India are expected to increase with the removal of iron ore export duties and Karnataka iron ore export ban. The positive shift was evident in growing exports during last quarter of FY 2023 and is likely to sustain. Global iron ore prices are expected to sustain in near term, driven by recovery in China’s economy and specifically its construction sector post lifting of Covid restrictions. Additionally, a decrease in production from key producers, Australia and Brazil, is expected to further strengthen the prices. Products and customers The Company produces iron ore and pig iron, and caters to steelmaking, construction, and infrastructure sectors. It sells more than 65% of pig iron and 69% of iron ore in the domestic market. In FY 2023, the Company strengthened its industry position by ramping up mining operations. It bagged iron ore blocks FEE grade and BICO in Odisha’s 124 Sundargarh in FY 2022 and operationalised both the mines in FY 2023 with a combined capacity of 5.5 MTPA. It also started mining operations in Bomi mine Liberia, achieving a production run-rate of 0.2 MTPA as on 31 March 2023. The Company expanded its geographic reach in India and won Bicholim mine in Goa, with resources of 84.92 MTPA. HIGH CARBON FERRO CHROME Overview High carbon ferro chrome (HCFC) is a key raw material in stainless steel, adding special characteristics of non- corrosiveness, high durability and temperature resistance. Over 80% of all ferrochrome goes into manufacture of stainless steel, making it a key demand driver. South Africa is the largest HCFC supplier and has significant bearing on market dynamics. However, Asia led by China is the largest consuming markets with 85% and 60% of the global HCFC consumption, respectively. China’s large overall import/merchant demand continues to make it the most influential market for global supply-demand dynamics and prices. In CY 2022, global HCFC production stood at ~15 million tonnes and India produced ~1.3 million tonnes, making it the fourth largest producer. India remained an export-oriented HCFC producer with 60% of the volume being exported. HCFC prices in FY 2023, especially during first half of the year, experienced volatility. In April 2022, the prices were at a 12-month high of US$1,592/t. However, it fell to a 15-month low of US$1,173/t in September 2022. During second half of the year, the prices improved with China reopening; prices stood at around US$1,350/t level at the year end. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Market Drivers Stainless steel demand and prices are the key market drivers for HCFC. With growing demand from infrastructure projects in developing countries and demand resumption from the largest market of China, stainless steel production is expected to grow at 4-5% for next fiscal. This is expected to drive demand for global HCFC. The global HCFC production is likely to grow at 3-4%. India is poised to be the fastest growing market, with both stainless steel and HCFC production projected to grow at 7-8%. India’s growth will be supported by largest-ever capital allocation for infrastructure creation including highway and airport development, railway network modernisation, and increased focus on housing construction. Products and customers Though India is an export-oriented country, Ferro Alloys Corporation (FACOR) is the second largest supplier of HCFC in the domestic merchant market. In FY 2023, FACOR sold 85% of its total ferro chrome volume within India, primarily to stainless steel and alloy steel producers. The Company is focussed on developing value added products (VAP) portfolio. It increased its VAP capacity from 75 KTPA to 150 KTPA in FY 2023 to address niche markets in North America, Europe and South Korea. In FY 2024, the Company will be focussed on enhancing its volume and footprint both in Indian and global markets. COPPER Overview Copper experienced another volatile year in CY 2022. Copper prices soared to a record high above US$10,000/t in March 2022 owing to rising geopolitical tensions, inflation and energy costs. However, a downtrend owing to the fears of recession drove down prices to nearly two-year lows of less than US$7,000/t by July 2022. Since then, the prices have gradually been moving up and were average US$8,836/t during March 2023. Overall global copper demand and supply were mostly flattish. Global refined copper consumption is estimated to have increased by 1.2% to 24.5 million tonnes. However, Indian copper market was strong in CY 2022; refined copper production and consumption increased by 10.5% to 550 kt and by 19% to 640 kt, respectively. Market Drivers In CY 2023, a rapid recovery in global economic activity and rebound in China’s construction and automotive industry following its economic reopening are expected to improve copper demand. Globally, CY 2023, is estimated to be a supply deficit year for copper with an estimated 2.6% growth in refined copper consumption, which would provide support to prices. China’s refined copper consumption is expected to grow by 2.5% to 13.9 million tonnes and India’s refined copper consumption to grow faster by 12.5% to 720 kt in CY 2023. India’s total copper demand is projected to reach 2.8 million tonnes by 2030 driven by building and construction, manufacturing, transportation, and consumer durable industries. EV segment would play a crucial role in driving demand given their higher copper content compared to traditional vehicles. Products and customers The Company has one of the largest copper production capacities in India. It produces a wide range of copper products including 8 mm copper rod, 11.42 mm/12.45 mm/12.45 mm wax free, copper cathode and copper car bar with housing wires, winding wires and cables, transformer and electrical profile producers being its primary customers. The Company sold 96% of its FY 2023 volume in domestic market. It also has presence in export markets, namely Saudi Arabia, Qatar and Nepal. The Company is undertaking various projects towards manufacturing green copper to strengthen its competitive positioning. 125 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 FINANCE REVIEW MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Executive summary: We had a strong operational and financial performance in FY 2023 amidst the challenges faced due to macroeconomic uncertainty. 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 & volume with strong control measures to ensure safe operations across businesses within framed government and corporate guidelines. In FY 2023, we recorded an EBITDA of `35,241 crore, 22% lower YoY with strong double digit adjusted EBITDA margin1 of 28%. (FY 2022: `45,319 crore, margin 39%). This was mainly due to slip in commodity prices at Aluminium, Lead and Silver and headwind in input commodity prices, partially offset by rupee depreciation, improved sales volume at zinc, aluminium and copper coupled with strategic hedging gains. Higher sales volumes resulted in increase in EBITDA by `641 crore, driven by higher volumes at zinc, aluminium and copper partially offset by reduced sales volume at Oil & Gas and Iron & Steel. Market factors resulted in decrease in EBITDA by `9,512 crore. This was primarily driven by input commodity inflation, decrease in the commodity prices, partly offset by rupee depreciation Gross debt as on 31 March 2023 was `66,182 crore, increase of `13,073 crore since 31 March 2022. This was mainly due to the increase of debt at VEDL Standalone and temporary debt at HZL partially offset by reduction of debt at TSPL & ESL and receipt of inter-company loan from VRL. Net debt as on 31 March 2023 was `45,260 crore, increased by `24,281 crore since 31 March 2022 (FY 2022: `20,979 crore), mainly due to dividend payment and capex outflow partially offset by cash flow from operations and working capital release. The balance sheet of Vedanta Limited continues to remain strong with cash & cash equivalents, of `20,922 crore and Net Debt to EBITDA ratio at 1.3x well within the approved capital allocation framework (FY 2022: 0.5x) 1 Excludes custom smelting at copper business. Consolidated EBITDA EBITDA decreased by 22% in FY 2023 to `35,241 crore. Consolidated EBITDA FY 2023 FY 2022 % change (` crore, unless stated) Zinc - India - International Oil & Gas Aluminium Power Iron Ore Steel Copper FACOR Others 19,408 17,695 17,474 16,161 1,934 7,782 5,837 851 988 316 (4) 149 (86) 1,533 5,992 17,337 1,082 2,280 701 (115) 325 23 10% 8% 26% 30% (66%) (21%) (57%) (55%) - (54%) - Total EBITDA 35,241 45,319 (22%) Consolidated EBITDA bridge: Consolidated EBITDA EBITDA for FY 2022 Market and regulatory: (9,512) a) b) c) d) Prices, premium/discount Direct raw material inflation Foreign exchange movement Regulatory changes Operational: (1,977) e) f) Volume Cost and marketing Others EBITDA for FY 2023 (` crore, unless stated) % change 45,319 (4,573) (9,984) 5,296 (251) 641 (2,618) 1,411 35,241 a) Prices, premium/discount Commodity price fluctuations have a significant impact on the Group’s business. During FY 2023, we saw a net negative impact of `4,573 crore on EBITDA due to slip in commodity prices. Zinc, lead and silver: Average zinc LME prices during FY 2023 increased to US$3,319 per tonne, up 2% YoY; lead LME prices decreased to US$2,101 per tonne, down 8% YoY; and silver prices decreased to US$21.4 per ounce, down 13% YoY. The cumulative impact of these price fluctuations decreased EBITDA by `387 crore. TC/RC in Zinc International Business during FY 2023 increased to US$245/dmt up 148% YoY, decreased EBITDA by `645 crore. 126 127 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Aluminium: Average aluminium LME prices decreased to US$2,481 per tonne in FY 2023, down 11% YoY, this had a negative impact of `5,732 crore on EBITDA. Oil & Gas: The average Brent price for the year was US$96 per barrel, up 18% YoY. This had positive impact on EBITDA by `1,183 crore. Iron & Steel: Higher realisations positively impacted EBITDA at ESL by `771 crore. b) Direct raw material inflation Prices of key raw materials such as imported alumina, thermal coal, carbon and coking coal have increased in FY 2023, negatively impacting EBITDA by `9,984 crore, primarily at Aluminium, Zinc and Iron & Steel business. c) Foreign exchange fluctuation Rupee depreciated against the US dollar during FY 2023. 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 `5,296 crore. Key exchange rates against the US dollar: d) Regulatory During FY 2023, changes in regulatory levies such as Renewable Power Obligation etc. had a cumulative negative impact on the Group EBITDA of `251 crore. e) Volumes Higher volume led to increase in EBITDA by `641 crore by following businesses: HZL (positive `1,153 crore): In FY 2023, HZL achieved metal sales of 1,032 kt, up 7% YoY and silver sales of 714 tonnes up 10% YoY ZI (positive `385 crore): In FY 2023, ZI achieved MIC sales of 273 kt, up 22% YoY Aluminium (positive `141 crore) Partly offset by: Cairn (negative `761 crore) and Iron and Steel (negative `333 crore) f) Cost and marketing (-`2,618 crore) Higher costs resulted in decrease in EBITDA by `3,167 crore over FY 2023, primarily due to increased cost, partially offset by higher premia realisations at Aluminium business. g) Others This primarily includes the impact of strategic hedging gains, partially offset by inventory adjustments during the year. Income statement Particulars Net Sales/Income from Operations (` crore, unless stated) FY 2023 FY 2022 % Change 1,45,404 1,31,192 11% Other Operating Income 1,904 1,541 EBITDA 35,241 45,319 EBITDA margin1 (%) Finance Cost Investment Income Exchange Gain/(Loss) Exploration Cost Written off Profit before Depreciation and Taxes Depreciation and Amortisation Profit before Exceptional items 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 24% (22%) - 30% 22% - - 28% 6,225 2,851 (492) (327) 39% 4,797 2,341 (235) - 31,048 42,627 (27%) 10,555 20,493 (217) 5,770 14,506 14,449 8,895 33,732 (768) 9,255 23,710 24,299 3,929 4,908 10,574 18,802 19% (39%) - (38%) (39%) (41%) (20%) (44%) 10,521 19,279 (45%) 28.50 50.73 (44%) 28.36 52.02 (45%) 80.27 74.46 82.16 75.59 8% 9% 1. Excludes custom smelting at Copper business 2. Exceptional Items gross of tax 3. 4. Tax includes tax benefit on exceptional items of `274 crore in FY 2023 (FY 2022: tax benefit of `178 crore) Previous period figures have been regrouped/rearranged wherever necessary to conform to current period presentation Average year ended 31 March 2023 Average year ended 31 March 2022 % change As at 31 March 2023 As at 31 March 2022 80.27 74.46 7.8% 82.16 75.59 Exceptional items2 : credit/(expense) Taxes3 Profit after taxes Indian rupee MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Revenue Reported record revenue for the year was `1,45,404 crore, higher 11% YoY. This was primarily driven by higher volumes at copper, zinc and aluminium, strategic hedging gains and rupee depreciation, partially offset by slip in commodity prices majorly of aluminium, copper, lead, and silver. EBITDA and EBITDA Margin Second highest EBITDA for the year was `35,241 crore, 22% lower YoY. This was mainly due to slip in commodity prices at Aluminium, Lead and Silver and headwind in input commodity prices, partially offset by rupee depreciation, improved sales volume at zinc, aluminium, and copper coupled with strategic hedging gains. We maintained a strong double digit adjusted EBITDA margin of 28% for the year (FY 2022: 39%) Depreciation and Amortisations Depreciation for the year was `10,555 crore compared to `8,895 crore in FY 2022, higher by 19%, due to increase in ore production at Zinc India and higher depletion charge at Oil & Gas business. Net Interest The blended cost of borrowings was 7.8% for FY 2023 compared to 7.9% in FY 2022. Attributable profit after tax (before exceptional items) Attributable PAT before exceptional items was `10,521 crore in FY 2023 compared to `19,279 in FY 2022. Earnings per share Earnings per share before exceptional items for FY 2023 were `28.36 per share as compared to `52.02 per share in FY 2022. Dividend Board has declared total dividend of `101.5 per share during the year. Shareholders' Fund Total shareholders fund as on 31 March 2023 aggregated to `39,423 crore as compared to `65,383 crore as of 31 March 2022. 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 2023 were `1,15,273 crore. This comprises `17,434 crore as capital work-in-progress. Finance cost for FY 2023 was `6,225 crore, 30% higher compared to `4,797 crore in FY 2022 mainly on account of increase in average borrowings. Balance Sheet Our financial position remains strong with cash and liquid investments of `20,922 crore. Investment income for FY 2023 stood at `2,852 crore, 22% higher compared to `2,341 crore in FY 2022. This was mainly due to interest received on income tax refund, mark-to market movement and change in investment mix. 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. Exceptional Items The exceptional items for FY 2023 were at `(217) crore, mainly on account of SAED partly offset by impairment reversal in ESL & WCL. [for more information, refer note [36] set out in P&L notes of the financial statement on exceptional items]. Taxation Tax expense for FY 2023 stood at `5,770 crore (FY 2022: `9,255 crore). The normalised ETR is 30% as compared to 28% in FY 2022 due to change in profit mix. Gross debt as on 31 March 2023 was `66,182 crore, an increase of `13,073 crore since 31 March 2022. This was mainly due to the increase of debt at VEDL standalone and temporary debt at HZL partially offset by reduction of debt at TSPL & ESL and receipt of inter-company loan from VRL. Gross Debt comprises term debt of c.`54,543 crore, working capital loan of c.`2,733 crore and short-term borrowing of c. `8,906 crore. The loan in ` currency is 90% and balance 10% in foreign currency. Average debt maturity of term debt is ~c. 3.4 years as of 31 March 2023. CRISIL and India Ratings at AA with negative outlook. 128 129 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Key FY 2023 outcomes Revenue `1,45,404 crore EBITDA `35,241 crore 11% YoY 22% YoY EBITDA margin1 28% Gross debt `66,182 crore Net debt `45,260 crore Cash and cash equivalents `20,922 crore ROCE ~ 21% PAT (before exceptional and one-time gain) `14,449 crore 41% YoY Free cash flow (FCF) post-capex `18,077 crore Contribution to the exchequer ~`73,486 crore Historic dividend `101.5 per share Net Debt/EBITDA 1.3X Note 1: excluding custom smelting at Copper Business 130 131 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OPERATIONAL REVIEW ZINC INDIA MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief Mine production progressively improved during the year with ore production for the full-year up 2% YoY to deliver a record 16.74 million tonnes, supported by strong production growth at Rajpura Dariba Mine, Sk Mines and Rampura Agucha mine, which were up 11%, 7% and 6% respectively. Mined metal production was up 4% YoY to 1,062 kt primarily on account of higher ore production improved mined metal grades and operational efficiencies. 1,032 kt Highest ever refined Zinc-Lead production 714 tonnes Ever-highest silver production 10% YoY 16.74 million tonnes Record ore production Occupational health & safety In line with our commitment to ensure zero harm to employees, the leadership has undertaken the prime responsibility of providing a safe workplace for all employees entering our premises. While committed to operate a business with ‘Zero Harm’, it is with deep sadness that we report the loss of six business partners colleagues and one HZL employees in work-related incidents at our managed operations. These incidents happened despite our constant efforts to eliminate fatalities and attain a Zero Harm work environment. A thorough investigation was conducted to identify the causes of these incidents and to share the lessons learned across Hindustan Zinc, to prevent similar incidents in the future. During the year, to avoid fatalities and catastrophic incidents in HZL, Vihan: A Critical Risk Management (CRM) initiative was launched to improve managerial control over rare but potentially catastrophic events by focussing on the critical controls. We have launched four critical risks i.e., Fall of Ground (FOG), Fall of person/object from height (WAH), Vehicle Pedestrian Interaction (VPI) and Entanglement. Through this initiative, we want to ensure that all identified critical controls are being monitored and systems are in place. Safety Pause was also conducted across all our operational units under the theme 'Stop Work if it’s not Safe'. During this connect, all recent safety incidents happened across group companies were discussed and key learnings were shared. Community of Practice - Structure Stability established during the year to establish a review mechanism of all prevailing civil and mechanical structures; further a specific categorisation was founded to mark the structures based on which their repair/replacement is planned. Second half of the year has been an era of innovation for mining operations to avoid manual intervention and related risk with inclusion of: Single point remote blasting over wi-fi at pilot level, digitalised drilling of production stops during blasting operations in which no manpower is present and machine drills in auto mode with interlock features of approaching man, Digital RFID based cap lamps along with proximity sensors to ensure real-time tracking and monitoring of personnel working in underground and Digital interlockings have been developed to stop over winding operation during excess of mud/water at shaft bottom. Training and capability building was also core theme during the year, few key programmes are first underground practical cum digitised training gallery developed at RAM to provide all facility of surface training to underground operations team, Wi-Fi Network available at training place so that underground manpower can connect from underground to any kind of seminars/trainings, safety leadership development program initiated for mines frontline supervisor through ex-DGMS officials and Dupont, RAM has also launched a unique virtual reality-based simulator training for jumbo operator. Response during any emergency is a paramount parameter to ensure safety of the people. As a proactive measure, we have conducted ERCP (Emergency Response and Crisis plan) Gap Assessment study across all the sites. 51st All India Mines Rescue Competition was hosted under the aegis of DGMS at Rajpura Dariba Complex, 10 days Capacity Building Training Programme on Disaster Management was conducted at ZM, the training included medical first responder, collapsed structure search & rescue, fire management, chemical emergencies, etc. RAM has reaffirmed safety & rescue by establishing Underground Fire Tender with remote operated foam unit and thermal imaging camera for blind zones. 132 133 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 mining operations environment-friendly, we plan to invest US$1 billion over the next five years towards combating climate change impacts. Electric Vehicles (EVs) are a globally recognised means to alleviate dependence on petroleum products and reduce CO2 emissions. Therefore, Hindustan Zinc signed a Memorandum of Understanding (MoU) with Epiroc Rock Drills AB, Normet Group Oy and Sandvik AB to introduce battery electric vehicles (BEV) in its underground mining operations making Hindustan Zinc the first company in India to introduce battery-operated vehicles in underground mines. HZL has led by example by inducting LNG-powered truck for transportation which shall contribute 30% lesser towards GHG emission. We are also using 5% biomass for power generation and reducing carbon footprint through our captive thermal power plants. In-line with HZL’s policy of a green value chain, our business partners have also started operating Electric vehicles, several electric forklifts have been introduced in our multiple business units. At HZL, we recognise the reality of climate change. Therefore, our risk management processes embed climate change in the understanding, identification, and mitigation of risk. We have published our second TCFD (Task Force on Climate-related Financial Disclosure) report during the year which sets the adoption of the TCFD framework for climate change risk and opportunity disclosure. Endeavouring towards sustainable organisation, we have relooked our materiality matrix and established the ESG governance at tier 3 level as well as at SBU level to implement ESG projects on ground. Hindustan Zinc joins the Taskforce on Nature-Related Financial Disclosures (TNFD) piloting with ICMM to access the challenges in implementing LEAP process of TNFD. Miyawaki afforestation was completed at DSC and CLZS. 12,000 Indigenous Plants and 6,500 native seeds planted in the area of 1 hectare at each of the location to create a self-sustaining forest in the span of 3 years. 3 years Engagement with IUCN has initiated, under this Prepared IBAT (Integrated Biodiversity Assessment Tool) Report for all Rajasthan-based locations identifying species present in the core area, Reframed Biodiversity Policy of HZL, Ecosystem Service review conducted across the Rajasthan based locations and Biodiversity risk assessment and site visit by IUCN team members for one season completed. These studies will help HZL to prepare a strategy to achieve ‘No Net Loss’ towards biodiversity. Green cover study done by SRSAC (State Remote Sensing Application Centre, Jodhpur) for all Rajasthan-based locations of HZL. Demonstrating the highest standards of health and safety management during the year, Dariba Smelting Complex received the prestigious ‘Sword of Honour’ from British Safety Council for showing excellence in the management of health and safety risks at work. Kayad Mines received 5 Star Rating Award in Safety and Welfare by Rajasthan Government and Jaswant Singh Gill Memorial Industrial Safety Excellence Award 2022 in underground Metal mine in India. Environment Hindustan Zinc commits to ‘Long-term target to reach net-zero emissions by 2050’ in line with Science Based Targets initiative (SBTi) aiming to have a clear and defined path to reduce emissions in line with the Paris Agreement goals. To achieve the target, we are working towards improving our energy efficiency, switching to low carbon energy sourcing, introducing battery operated electrical vehicles and increasing the role of renewables in our energy mixes. We have entered into a power delivery agreement for supplying 450 megawatts of renewable power by 2025 which will not only strengthen our commitment towards a clean future but also help reduce emissions to the tune of 2.7 million tCO2e. Also, Pantnagar metal plant is sourcing 100% green power for its operations thus making it a one-of-a-kind initiative, leading towards reducing emissions by 30,000 tCO2e. Technology and digitalisation are key to strengthening our ESG footprint and creating a net-zero future. It is our ambition to convert all our mining equipment to battery-operated Electric Vehicles (EVs). To make our 134 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS One of the most notable achievements has been the successful commissioning of a 3,200 KLD Zero Liquid discharge (RO-ZLD) plant at the Dariba Smelter. Apart from that, Zawar (ZM) and Rampura Agucha Mine ZLD projects of 4,000 KLD capacity each have been initiated to improve recycling and strengthen the zero discharge. Like ZM, dry tailing plant at Rajpura Dariba Mine is also under final stage of commissioning and will result in significant amount of water recovery from the tailings. Site Inspection and updated GISTM (Global Industry Standard on Tailing Management) Conformance Assessment completed by ATC Williams for all TSF (Tailing Storage Facility). Environment Product Declaration (a Type 3 Ecolabel) for zinc product published. Public hearing was conducted successfully at CLZS for proposed enhancement of zinc production capacity from 504 to 630 kt and installation of Induction Furnace, Slab Casting Line, RZO Unit, change in product mix in Pyro unit on total metal basis & installation of lead refinery & minor metal complex etc. Production performance Production (kt) FY 2023 FY 2022 % Change Total mined metal Refinery metal production Refined zinc – integrated Refined lead – integrated1 Production – silver (in tonnes)2 1,062 1,032 821 211 714 1,017 967 776 191 647 4% 7% 6% 10% 10% 1. 2. Excluding captive consumption of 7,912 tonnes in FY 2023 vs. 6,951 tonnes in FY 2022. Excluding captive consumption of 41.4 tonnes in FY 2023 vs. 37.4 tonnes in FY 2022. Operations For the full-year, ore production was up 2% YoY to 16.74 million tonnes on account of strong production growth at Rajpura Dariba Mine, SK Mines and Rampura Agucha Mine, which were up 11%, 7% and 6% respectively. FY 2023 saw the best-ever Mined metal production of 10,62,089 tonnes compared to 10,17,058 tonnes in the prior year in line with higher ore production across Mines supported by better metal grades and operational efficiencies. For the full year, we saw our ever-highest metal production, up 7% to 1,032 kt in line with better plant and MIC availability, while silver production was 10% higher at 714 million tonnes in line with higher lead metal production. Particulars FY 2023 FY 2022 % Change Average zinc LME cash settlement prices US$ per tonne Average lead LME cash settlement prices US$ per tonne Average silver prices US$/ounce 3,319 3,257 2% 2,101 2,285 (8%) 21.4 24.6 (13%) FY 2023 started well with the prices around ~US$4,000/t. With the impact of the Russia-Ukraine War, lockdown announced in China and US GDP contraction, zinc prices hovered around US$4,400/t for most of April 2022 and ended at US$4,100/t. In the month of May, prices went down to US$3,499/t over concerns of economic slowdown in the US and China. Prices again rebounded above US$4,000/t driven by increased expectation of a stimulus from the Chinese government to support growth in order to offset the impact of the coronavirus. However, in Q3 FY 2023, negative sentiment of the market pushed down the LME prices in October 2022 and reached to US$2,682/t on 3 November 2022, lowest since February 2021. With the sudden end to China’s zero-Covid policy at the end of CY 2022 and the prospect of Chinese demand rebound, the faith in base metals has been restored in investors. This gave the much- needed boost and prices rose above US$3,400/t in January 2023, with monthly average of US$3,289/t. However, the trend has not lasted for long and prices have corrected to US$2,956/t in March 2023. In long term, the prices will be pressured by growing surpluses. The higher zinc prices in recent years have encouraged the development of a significant amount of new mine projects. However, the smelter capacity suggests not all of this new mined output will be processed, leading to concentrate surpluses. At the same time, smelter output growth is forecast to outpace demand growth. This, in turn, will lead to a significant refined stock build. As the cumulative surplus becomes unsustainably large, prices will fall lower to rebalance the market. 135 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Zinc Demand-Supply Zinc Global Balance In kt CY 2021 CY 2022 CY 2023 E Mine Production Smelter Production Consumption 13,094 13,867 14,147 12,862 13,489 13,587 13,080 13,855 13,794 Source: Wood Mackenzie, March STO Global demand witnessed contraction in CY 2022, decreasing by 3.0% to 13.6 million tonnes, largely due to the fall in Chinese demand. At supply level, the refined zinc metal production fell by 2.6%, as several smelters closed for care and maintenance across the world owning to the increase in energy prices. The global mined zinc production is expected to grow stronger during 2023 to 2026 period as there will be new mine projects ramping-up. And it is expected that the production will grow by 1.8% to 13.8 million tonnes in 2023,. The global zinc warehouse stocks also fell during this period due to supply constraints. The total tonnage of zinc in the Shanghai Futures Exchange (SHFE) warehouses fell to 20 kt at the end of December 2022 and settled at 97 kt at the end of March 2023, from 176 kt in April 2022. And the London Metal Exchange (LME) stocks stood at 45 kt at the end of the March 2023, down from 140 kt in April 2022. The Indian economic environment has remained optimistic. The same was reflected by the S&P Global Manufacturing PMI which stood at 56.4 in March 2023 as compared to 54.7 in April 2022 and 55.3 in February 2023, reflecting expansion in manufacturing sector. The Indian automobile industry is on a growth trajectory, with 13.5% increase in production to reach 227 lakh units till February 2023 from April 2022, compared to the same period in the previous fiscal. The passenger vehicle sales stood at 29 lakh units, marking a growth of 30% over the same period in the previous year. (Source: SIAM & SP Global Index) The finished steel domestic production was at 110.44 million tonnes during April 2022 to February 2023, up by 7.2% over the same period in the previous year. Consumption in domestic market during the same period stood at 108.15 million tonnes, up by 12.6%. The total net finished steel exports till February 2023 stood at 5.90 million tonnes, down by 52% over same period in the previous financial year on account of export duty levy. (Source: MIS Report on Iron & Steel by JPC) The overall domestic demand for primary zinc in this financial year has seen growth rate of 3.8% compared to last year, reaching pre COVID levels, and it is expected to grow further by 4% in FY 2024. Unit costs Particulars Unit costs (US$ per tonne) Zinc (including royalty) Zinc (excluding royalty) FY 2023 FY 2022 % Change 1,707 1,257 1,567 1,122 9% 12% For the full year, zinc COP excluding royalty was US$1,257/t, higher by 12% YoY (21% higher in ` terms). The COP has been affected by higher coal & commodity price increase partially offset by benefits from better volumes, operational efficiencies & recoveries. Financial performance Particulars Revenue EBITDA EBITDA margin (%) FY 2023 FY 2022 % Change 33,120 17,474 53% 28,624 16,161 56% 16% 8% - Revenue from operations for the year was `33,120 crore, up 16% YoY, primarily on account of higher metal & silver production, higher Zinc LME prices, gains from strategic hedging and favourable exchange rates partially offset by lower lead and silver prices. EBITDA in FY 2023 increased to `17,474 crore, up 8% YoY. The increase was primarily driven by improved metal and silver volumes, higher Zinc LME prices, gains from strategic hedging and favourable exchange rates partly offset by higher costs and lower lead & silver prices. Projects In HZL journey of 1.25 MTPA MIC expansion, only left-out project of RD Beneficiation plant revamping is under execution at RD Mines which is scheduled to be commissioned in Q1 FY 2024. Fumer plant final commissioning delayed due to VISA issues of OEM from China. The plan is to complete commissioning of plant through OEM support in Q1 FY 2024. For further phase of expansion of Mines and Smelters, studies are under progress and results are expected in FY 2024. The capacity of smelters is being enhanced by putting up a new Roaster in Debari with latest technologies. The order placement is targeted by Q1 FY 2024. A new project of Hindustan Zinc Alloys ordered in Q1 FY 2023 is under execution and scheduled for completion in Q1 FY 2024. HZL is also setting up new Fertiliser Plant in Chanderiya for which partner has been locked in. Formal order placement is scheduled to be completed in Q1 FY 2024. Project is scheduled for completion in 24 months. Exploration Zinc India’s exploration objective is to upgrade the resources to reserves and replenish every tonne of mined metal to sustain more than 25 years of metal production by fostering innovation and using new technologies. The Company has an aggressive exploration program focussing on delineating and upgrading Reserves and Resources (R&R) within its licence areas. Technology adoption and innovations play key role in enhancing exploration success. The deposits are ‘open’ in depth, and exploration has identified number of new targets on mining leases having potential to increase R&R over the next 12 months. Across all the sites, the Company increased its surface drilling to assist in Resource addition and 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). On an exclusive basis, total ore reserves at the end of FY 2023 totalled 173.49 million tonnes and exclusive mineral resources totalled 286.56 million tonnes. Total contained metal in Ore Reserves is 9.64 million tonnes of zinc, 2.7 million tonnes of lead and 310.2 million ounces of silver and the Mineral Resource contains 12.8 million tonnes of zinc, 5.66 million tonnes of lead and 545.7 million ounces of silver. At current mining rates, the R&R underpins metal production for more than 25 years. Strategic Priorities & Outlook Our primary focus remains on enhancing overall output, cost efficiency of our operations, disciplined capital expenditure and sustainable operations. Whilst the current economic environment remains uncertain, our goals over the medium term are unchanged. 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 be in the range of US$1,125-US$1,175 per tonne through efficient ore hauling, higher volume & grades and higher 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 upgrade resource to reserve • Progressing towards sustainable future with continued efforts towards reduction in GHG emissions, water stewardship, circular economy, biodiversity conservation and waste management Pg. 50 136 137 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ZINC INTERNATIONAL 138 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief During FY 2023, Zinc International continued to ramp-up production at Gamsberg mine and achieved record production of 208 kt. This was mainly due to increase in tonnes treated and plant recoveries compared to previous financial year. Black Mountain continued to have a improved production of 65 kt, which is significantly higher than FY 2022 due to higher lead grades and recoveries. Skorpion Zinc has been under Care and Maintenance since start of May 2020, following cessation of mining activities due to geotechnical instabilities in the open pit. Activities to restart the mine are still in progress. 208 kt Record mined metal production at Gamsberg Occupational health & safety At Vedanta Zinc International (VZI), we take the health and safety of our employees and stakeholders very seriously and we remain committed to communicating timeously and transparently to all stakeholders. Airborne particulate management remains a key focus in reducing lead and silica dust exposures of employees (Exposure Reduction to Carcinogenic). VZI had 17 blood lead withdrawals for FY 2023, against more stringent limits than required by law. We have strengthened our Employee Wellness Programme, focussing on the increased participation of employees and communities in VCT for Aids/HIV, blood donation and wellness. VZI is embarking on a real-time monitoring strategy and additional controls at source to reduce and eliminate exposures to both silica and lead. The VZI LTIFR improved from 1.41 in FY 2022 to 0.75 in FY 2023. The TRIFR improved from 5.6 in FY 2022 to 3.1 in FY 2023, both improving by 46% and 44% respectively. VZI remained fatal free during FY 2023, and Black Mountain Mine achieved LTI free year. These remarkable achievements were necessitated by VZI’s strong commitment to Zero harm principle and a belief that everybody coming to VZI must return home safe and healthy every day. Leading Indicators reporting, Leadership Engagements and Critical Risk Management were the strategic initiatives central to these record setting achievements. VZI shall, in collaboration with the Mineral Council and Vedanta Group continue to seek for leading practices to continually improve our HSE performance. Environment VZI has secured Portion 1 of the farm Wortel 42 as the fifth Biodiversity Offset Property and has presented the property to the Department of Agriculture, Environmental Affairs, Rural Development and Land Reform (DAERDLR). Once the property is transferred to BMM’s name, there will be declaration of this property as a Protected Area, as an inclusion to the Gamsberg Nature Reserve Protected Area under the National Environmental Management Protected Areas Act, 2003 (Act No. 57 of 2003). This is a requirement of Clause of the Biodiversity Offset Agreement (BOA). BMM is in negotiations with landowners to secure the remaining two farms by 1 April 2024 to ensure compliance to Clause 6 of the BOA. The Second Independent Audit on the Implementation of the BOA between BMM and DAERDLR commenced October 2022 and the draft reports have been submitted to the implementation parties (BMM and DAERDLR) for comments and review. The final report will be available by end of March 2023 with a large improvement since the previous audit. The final report will be published in VZI Annual Report and on the VZI webpage as required by the BOA. The implementation of the nine Biodiversity Monitoring Protocols has been completed for a test year and will be revised and updated in April 2023 for long-term implementation. BMM are awaiting verification of the status of No Net Loss that was monitored and measured as part of the implementation of the Biodiversity Monitoring Protocols and a statement regarding the findings and verification will be shared. The installation of a dedicated anti-poaching surveillance camera network, covering a circular route of more than 400 km show good results and according to statistics received from South Africa Police Services (SAPS) and the Agri Namakwaland the surveillance camera network has resulted in a large decrease in petty crime in the area. However, incidents of poaching outside the surveillance cameras are still reported on an ad hoc basis as poachers adjust their modus operandi. An Antipoaching workshop between IUCN, BMM, DAERDLR, South Africa Biodiversity Institute (SANBI), SAPS and key role players in the area are planned for April 2023. Production performance Production (kt) Total production (kt) Production – mined metal (kt) BMM Gamsberg FY 2023 FY 2022 % Change 273 65 208 223 22% 52 170 25% 22% 139 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Operations During FY 2023, total production stood at 2,72,713 tonnes, 22% higher YoY. This was primarily due to tonnes treated and higher recoveries. EBITDA increased by 26% to `1,934 crore, from `1,533 crore in FY 2022 also mainly on account of improved operational performance, higher zinc LME price, favourable exchange rates movement partially offset by lower lead & silver prices and increase in TC/RC. At BMM, production was 65,112 tonnes, 25% higher YoY. This was mainly due to 8.9% higher throughput at 1.7 million tonnes, higher lead grades (3.0% vs 2.1%) and recoveries (82.8% vs 81.6%) offset by lower grades of zinc (1.8% vs 2.1%) and recoveries (71.9% vs 75.2%). Gamsberg’s production was at 2,07,601 tonnes as the operation continues to ramp up with improved performance during current financial year. Higher production at Gamsberg YoY is attributable to 7.8% increase in throughput to 4.2 million tonnes, higher zinc grades (6.5% vs 6.2%) and recoveries (75.7% vs 69.9%). 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. Unit costs Particulars (US$ per tonne) FY 2023 FY 2022 % change Overall Zinc COP including TcRc Gamsberg Zinc COP excluding TcRc 1,577 1,442 9% 1,033 1,168 (12%) Gamsberg COP excluding TcRc decreased by 12% to US$1,033 per tonne. This reflects the strength and efficiency of our operations at Zinc International. The decrease in the cost of production was driven by higher production supported by local currency depreciation against the US$ despite high input commodity inflation. Overall Zinc COP including TcRc increased by 9% to US$1,577 per tonne, from US$1,442 per tonne in the previous year. This was mainly driven by commodity price inflation and higher treatment and refining charges, offset by higher production and local currency depreciation against the US$. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % change 5,209 1,934 37% 4,484 1,533 34% 16% 26% During the year, revenue increased by 16% to `5,209 crore, driven by higher sales volumes compared to FY 2022 due to 22% higher production BMM & Gamsberg, higher zinc LME prices and favourable exchange rates movement partially offset by lower lead and silver prices. 140 Projects Refinery Conversion – The Skorpion Refinery Conversion project has reached Ready-to-order phase, post completion of FEED, feasibility study, tendering activities & techno-commercial adjudication and contract finalisation. All regulatory approval is in place to start project execution. With power tariffs being very critical for the viability of the project, discussions/negotiations are in progress with the state power utility along with the option of renewable power which is also being explored. We are only waiting for confirmation of power tariff to take the final decision and starting the execution on the ground by H1 FY 2024. Gamsberg Phase 2 – Gamsberg Phase 2 project includes the mining expansion from 4 MTPA to 8 MTPA and Construction of New Concentrator plant of 4 MTPA, taking the total capacity to 8 MTPA and was approved by the Vedanta Board in Q4 of FY 2022. The EPC partner, Onshore, has been appointed in Q1 FY 2023, site mobilisation completed, detailed engineering is under progress and the project is in execution phase. All Major Long lead FIMs {Ball & Sag Mill (CITIC), Crusher, Floatation, Filter Presses and Thickeners Package (MO)} Orders placed. Cumulative progress – Engineering – 61.79%; Procurement – 35.17%; Construction - 1.57%; Overall project – 16.26% Transformer and 11 KV Switchgear partner are locked in Crusher House & LV Substation Foundation Works-in-Progress Wet TSF Design under progress – Geo Chemical investigation completed. Geotech investigation in progress External Power & Water package –Site established, and work started Workmen Camp & Site Office Establishment – In progress MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Gamsberg Smelter – The Gamsberg Smelter Project is re-defined with phased approach wherein 210 KTPA capacity phase 1 will be executed by repeating the available HZL smelter design incorporating necessary modifications required to treat Gamsberg Concentrate. The partner selection is in progress for various EPC/EP+C packages. We have appointed ThyssenKrupp (TKIS-India) as Owner’s engineer. The techno-commercial proposals with Shapoorji & L&T as the prospective EP Partners. Construction Tender released on 23 November 2022. RFQs for all FIMs released Construction Tender released on 23 November 2022. Offers are received and are under Commercial negotiations The techno-commercial proposal for EPC 1 (on EP basis) is received from Shapoorji and it is under commercial adjudication. L&T ‘s offer is awaited Pre bid meeting conducted with all prospective partners for Renewable Power. Proposals received from 4 vendors We have received the environmental approval for the Smelter & Bulk water pipeline construction. The Smelter EC is currently under appeal phase. We are also engaging with Gov. of South Africa on the other critical success factors like SEZ, power price, sulphuric acid offtake, logistics infrastructure and balance regulatory approvals which are vital for economic feasibility of the project. Black Mountain Iron Ore project – This is a project to recover iron ore (magnetite) from the BMM fresh tailings. EPC’s detailed engineering, procurement, earthworks, and major fabrication are completed. Construction is currently at 76.4% completion. Project being relooked for repurposing under guidance of CEO, Zinc Business. Exploration 0.3% increase in resources from 27.20 million tonnes to 27.29 million tonnes metal and 4.4% reduction in reserve metal tonnes from 7.9 million tonnes to 7.6 million tonnes. Total R&R for VZI decreased from 671 million tonnes to 659 million tonnes of ore, while metal decreased from 35.1 million tonnes to 34.87 million tonnes (0.7% decrease in total metal) Reduction in reserves largely attributable mining depletions and the slight increase in resources due to addition of metal tonnes at Kloof which was offset by an increase in transport/operating costs and increased dilution which impacted the cut-offs used. Strategic Priorities & Outlook Zinc International continues to remain focussed to improve its YoY Production by sweating its current assets beyond its design capacity, debottlenecking the existing capacity, and adding capacity through Growth Projects. Our Immediate priority is to ramp up the performance of our Gamsberg Plant at designed capacity and simultaneously complete Gamsberg Phase 2 project to add another 190 kt to the total production of VZI. Likewise, BMM continues to deliver stable production performance and focus is to debottleneck its ore volumes from 1.8 million tonnes to 2.0 million tonnes. Skorpion is expected to remain in Care and Maintenance, while management is assessing feasible & safe mining methods to extract ore from Pit 112. Zinc International continues to drive cost reduction programme to place Gamsberg operations on 1st Quartile of global cost curve with COP< US$1,100 per tonne. Core Growth strategic priorities include the following: • Completion of construction activities of Gamsberg Phase 2 project with the aim to start production in H2 FY 2024 • Continue to improvise Business case of Skorpion Refinery Conversion Project and Gamsberg Smelter Project through Government support, Capex and Opex reduction Pg. 50 141 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OIL AND GAS MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief During FY 2023, Oil & Gas business delivered gross operated production of 143 kboepd, down by 11% YoY, primarily driven by natural reservoir decline at the MBA fields. The decline was partially offset by addition of volumes through new infill wells brought online in Mangala, Bhagyam and Raageshwari Deep Gas fields. Offshore assets were supported by gains from the infill drilling campaign across both assets Ravva and Cambay. In OALP blocks, we have secured 8 blocks in DSF-III round and one Coal Bed Methane (CBM) Block in special CBM round 2021. 143 kboepd Average gross operated production 11% YoY Occupational Health & Safety There was one lost time injuries (LTIs) in FY 2023. Frequency rate stood at 0.03 per million-man hours (FY 2022: 0.20 per million-man hours). Our focus remains on strengthening our safety philosophy and management systems. Cairn Oil & Gas has taken various initiatives: Environment Our Oil & Gas business is committed to protect the environment, minimise resource consumption and drive towards our goal of ‘zero harm, zero waste, zero discharge’. Highlights for FY 2023 are as: • Cairn Oil & Gas declared as Water Positive Company with NPWI (Net water positive impact) index of 1.12. Four of our sites RJ Oil, RJ Gas, Midstream and Ravva) are also individually declared as water positive assets. “5S” certification for Mangala, Raageshwari and Aishwarya Mines. Biodiversity/wildlife conservation initiatives Established Mines Vocational Training Centre at RJ Oil, Barmer. Project CSUSP (Cairn Sustainability & Safety Performance Program), a journey to improved sustainable and increased safety performance initiated. Digital initiatives: NLP (Natural Language Processing) based Safety Observation Reader, Training through Virtual Reality Headsets, QR code based tracking system for fire cylinders. Artificial intelligence-based safety surveillance system installed across locations. MoU signed with District Forest Office, Rajasthan and Gujarat for plantation of 0.35 million trees over 700 hectares in Barmer district and development of 60-hectare mangroves forest in Sural Coastal area respectively. Biodiversity assessment completed with objective to draw No Net Loss or Net Positive Impact. Drinking water facility developed for wild animals at Dhorimanna Hilly Forest Area, Barmer. Revival of Khejari in Thar Ecosystem through Agro forestry and distributed 300 saplings to community farmers. COVID-19 mass booster dose vaccination drive for employees, their family members and business partners. Published book “Know Your Flora – A Glimpse of Thar Ecosystem” and video on "Ravva Biodiversity - Photo Journey of a Nurtured Ecosystem”. 142 143 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Reduction in GHG emission: Cairn signed Power Purchase Agreement (PPA) for 25 MW renewable energy Installation of 150+ Solar lights at Mangala Processing Terminal & well pads for renewable power generation ~32,000 units/ annum. Reduction in RDG flare by tuning the control valve of condensate flash drum (CFD) & Stabiliser column & recycle gas compressor optimisation with annual GHG Reduction potential of 17,300 tonnes of CO2e/annum. Solar rooftop installed on 10 AGIs (above ground installations) for pipeline operations (Annual GHG reduction potential of 208 tonnes of CO2e/annum). Installation of 220 KWP of Solar Rooftop at RJ Gas and 130 KWP at Radhanpur Terminal (Annual GHG reduction potential of ~440 tonnes of CO2e/annum). Commissioned 10 KWP Solar Plant at Cambay asset. Introduced 5 new Electric Golf carts at RJ Gas for internal commuting. All Operating assets of Cairn (RJ Oil, RJ Gas, Midstream operations, Ravva, and Suvali) have been certified as “Single Use Plastic free” premises. Production performance Gross operated production Rajasthan Ravva Cambay OALP Oil Gas Net production – working interest Oil* Gas Gross operated production Net production – working interest Unit Boepd Boepd Boepd Boepd Boepd Bopd Mmscfd Boepd Bopd Mmscfd Mmboe Mmboe FY 2023 1,42,615 1,19,888 11,802 10,777 147 1,18,634 144 91,485 76,149 92 52.1 33.4 FY 2022 1,60,851 1,37,723 14,166 8,923 39 1,35,662 151 1,03,737 87,567 97 58.7 37.9 % change (11%) (13%) (17%) 21% 277% (13%) (5%) (12%) (13%) (5%) (11%) (12%) * Includes net production of 450 boepd in FY 2023 and 535 boepd in FY 2022 from KG-ONN block, which is operated by ONGC. Cairn holds a 49% stake. Operations Average gross operated production across our assets was 11% lower YoY at 1,42,615 boepd. The Company's production from the Rajasthan block was 1,19,888 boepd, 13% lower YoY and from the offshore assets, was at 22,579 boepd, 2% lower YoY, owing to natural field decline. The decline has been partially offset by infill wells brough online across all assets. Production details by block are summarised below: Rajasthan block Gross production from the Rajasthan block averaged 1,19,888 boepd, 13% lower YoY. The natural decline in the MBA fields has been partially offset by infill wells brought online in Mangala, Bhagyam, ABH and RDG fields. Gas production from Raageshwari Deep Gas (RDG) averaged 142 million standard cubic feet per day (mmscfd) in FY 2023, with gas sales, post captive consumption, at 118 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 ten-year extension of the PSC for the Rajasthan block, RJ-ON-90/1, subject to certain conditions, with effect from 15 May 2020. The Division Bench of the Delhi High Court in March 2021 set aside the single judge order of May 2018 which allowed extension of PSC on same terms and conditions. We have filed a Special Leave Petition (SLP) in Supreme Court against this Delhi High court judgement. We have served notice of Arbitration on the GoI in respect of the audit demand raised by DGH based on PSC provisions. The final hearing and arguments were concluded in September 2022. Post hearing briefs have been filed by the parties on 11 November 2022. 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. Pursuant to GoI's approval for extension vide letter dated 26 October 2018, the parties have now executed the addendum for PSC extension for 10 years from 15 May 2020 to 14 May 2030 on 27 October 2022. Ravva block The Ravva block produced at an average rate of 11,802 boepd, lower by 17% YoY, owing to natural field decline. Cambay block The Cambay block produced at an average rate of 10,777 boepd, higher by 21% YoY, supported by gains from the infill well drilling campaign. Prices Particulars Average Brent prices – US$/barrel FY 2023 FY 2022 % change 96.2 81.15 18% Crude oil price averaged US$96.2 per barrel in FY 2023, compared to US$81.15 per barrel in FY 2022. The continuous upward movement is mostly driven by supply constraints following Russia’s invasion of Ukraine. Early in the year, prices rose amid tight supply after a build in U.S. crude and gasoline stocks, limited spare capacity of OPEC and downfall in supply from Caspian Pipeline Consortium. Demand outlook remains clouded by increasing worries about an economic slump in the United States and Europe, debt distress in emerging market economies. Further, faltering economic backdrop and weakening outlook for consumption caused a volatility in the oil prices. Interest rate hike by central banks around the world weighted on demand outlook and series of rate hikes by US Fed caused dollar to spiral to two decades high to make oil more expensive to the buyers holding currency other than dollar. COVID-19 restrictions in China and US administration releasing oil inventories from strategic reserve further eased the prices. However, in March, financial markets witnessed uncertainty, triggered by the turmoil in the US and European banking sector. Concerns about potential financial contagion effects and the risk that banking sector turmoil will extend to the economy pushed crude oil prices sharply down to 15-month lows at US$75/bbl. In April, decision by OPEC and allies to slash May production by 5,00,000 bopd in a bid to arrest the slump in prices provided floor to the prices. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % change 15,038 12,430 7,782 52% 5,992 48% 21% 30% - Revenue for FY 2023 was 21% higher YoY at `15,038 crore (after profit petroleum and royalty sharing with the Government of India), as a result of the increase in oil prices, favourable exchange rate movements partially offset by lower sales volume. EBITDA for FY 2023 was at `7,781 crore, higher by 30% YoY as a result of higher brent prices, favourable exchange rate movement, increase in capex recovery partially offset by lower volumes and increased cost. The Rajasthan operating cost was US$14.2 per barrel in FY 2023 compared to US$10.1 per barrel in FY 2022, primarily driven by increase in polymer commodity index, owing to oil price rally and increased well interventions to manage natural field decline. 144 145 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 A. Growth Projects Development Satellite Fields The Oil & Gas business has a robust portfolio of infill development & enhanced oil recovery projects to add volumes in the near term and manage natural field decline. Some of key projects are: Infill Projects Bhagyam To accelerate production and augment reserves from Bhagyam field, infill drilling opportunities in FB1 and FB3 layers were identified. The project entails drilling of 11 infill producers and injector wells in FB3 layers and three horizontal wells in the bio-degraded zone. In order to monetise the satellite fields, 14 wells development campaign for 3 satellite fields (GSV, Tukaram, Raag Oil) was conceptualised. Drilling has been completed during fiscal year 2023 and they are being progressively hooked up to ramp up volumes. Cambay (Offshore) Infill program in Cambay over the last few years has resulted in incremental recovery. New opportunities had been identified basis integration of advanced seismic characterisation, well and production data. Project has been completed during the second quarter of fiscal year 2023 and two wells are online. As of 31 March 2023, 12 wells have been drilled, of which 7 wells are online. Ravva (Offshore) To augment reserve base and manage natural decline, infill opportunities were identified in Ravva asset. The project entails drilling of four exploration wells and 1 development well. Project has been completed during the fourth quarter of fiscal year 2023 and success has been notified in two exploration wells and 1 development well which are online and producing. No hydrocarbons were observed in two wells and have been declared dry. Discovered Small Field (DSF) Hazarigaon: Well intervention and testing activities was carried out in Hazarigaon-1 well and monetisation is underway. Production commenced from third quarter of fiscal year 2023. Aishwarya Based on the success of the polymer injection in Lower Fatehgarh (LF) sands of Aishwariya field, additional production opportunities were identified in Upper Fatehgarh (UF) sands. The project entails drilling of 25 infill wells in Upper Fatehgarh (UF) sands and conversion of 7 existing wells to UF polymer injectors. As of 31 March 2023, 18 wells have been drilled, of which 8 wells are online. Tight Oil (ABH) Aishwariya Barmer hill infill drilling program established confidence in reservoir understanding of ABH. Based on its success, drilling of 14 additional wells were conceptualised. Early acceleration of three wells has been completed during the fiscal year 2023. Drilling is to re-commence from first quarter of fiscal year 2024. Tight Gas (RDG) In order to realise the full potential of the gas reservoir, an infill drilling campaign of 27 wells has commenced during fiscal year 2022. As of 31 March 2023, 24 wells have been drilled of which 17 wells are online. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Strategic Priorities & Outlook Vedanta’s Oil & Gas business has a robust portfolio mix comprising of 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 ahead is to deliver our commitments from our world-class resources with ‘zero harm, zero waste and zero discharge': • Infill projects across producing fields to add volume in near term • Define up to 20 potential new development projects to bring these Resources into production • Unlock the potential of the exploration portfolio comprising of OALP and PSC blocks • Continue to operate at a low cost-base and generate free cash flow post-capex Pg. 50 B. 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 have completed drilling of 2 exploration wells and to unlock the potential of unconventional resources, we completed drilling of the first shale exploration well in Rajasthan during the fiscal year 2023. We are also evaluating further opportunities to drill low to medium risk and medium to high reward exploration wells to build on the resource portfolio. 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, of which 5 onshore blocks in the KG region have been relinquished. Production commenced from Jaya discovery in Cambay region in third quarter of fiscal year 2023. This is the first of its kind production facility wherein sales through CNG cascade system are being done by an E&P operator from an exploration well site. Drilling preparations are ongoing in the Offshore West-Coast to drill a moderate risk-high reward prospect (risked resource potential of 42 mmboe) within the Kutch-Saurashtra basin during the first quarter of fiscal year 2024. We intend to continue the exploration across Rajasthan, Cambay, and North-east in FY 2024 to unlock the full potential of the OALP blocks. 146 147 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ALUMINIUM MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief In FY 2023, the aluminium business achieved highest ever aluminium production of 2.29 million tonnes. It has been a remarkable year as we inched towards our vision of 3 MTPA Aluminium. Though this year we saw headwinds in cost due to rising commodity prices and the coal crisis but we undertook several structural initiatives to make our business immune from market induced volatilities. These reforms coupled with our continued focus on operational excellence, optimising our coal and bauxite mix, improved capacity utilisation across refinery, smelter and power plant, will further help reduce our cost in sustainable manner and make the business more predictable and improving our price realisation to improve profitability in a sustainable manner through well-structured PMO approach. The hot metal cost of production for FY 2023 stood at US$2,324 per tonne. We have produced 1.79 million tonnes of calcined alumina at the Lanjigarh refinery. 2,291 kt Highest ever aluminium production Occupational health & safety We report with deep regret, one fatality of business partner employee during the year at Jharsuguda site. We have thoroughly investigated all the incidents and the lessons learned were shared across all our businesses to prevent such incidents in future. include safer access pathways for pedestrians and heavy vehicles across the site. Safety systems incorporated to improve safety are introduction of Driver Management Centre, monitoring of vehicles & safe driving parameters through smart cameras, speed detectors and Vehicle Tracking System. BALCO has onboarded the journey of “Vihan” - Critical Risk Management (CRM) and launched with five critical risks control this year. The site has also implemented digitisation project v-Unified (ENABLON) to manage safety through technological tools. The Site is committed to ‘Refuse Work if it is Unsafe to Execute’ and empowered all site personnel to reject any activity that posed a possible safety concern. Environment During the year, Jharsuguda has recycled 13.09% of the water used, while BALCO has recycled 10.76%. Our specific water consumption at VLJ metal was 0.20 m3/t, BALCO metal was 0.61 m3/t and alumina refinery was 2.04 m3/t. At Lanjigarh, biomass was co-fired in the boiler for the first time, with all defined safety measures to reduce GHG emissions (by 388 tCO2e) of the power plant. At BALCO, biomass was co-fired in the boiler for the first time (Qty: 5 kt), with all defined safety measures to reduce GHG emissions (by 6,900 tCO2e) of the power plant. Also started using biodiesel for the first time in technological vehicles and Ladle cleaning shop. This is in line with the Vedanta de-carbonisation and carbon neutrality plan. EV vehicles will be used in operations as part of the green drive. Under this initiative, the Jharsuguda unit has deployed Electric 27 forklifts in place of diesel-propelled forklifts. We have planned to shift to 100% EV LMV by FY 2030. This will help us eliminate our in-plant scope 3 GHG emission from LMV operations at the Jharsuguda business. BALCO has planned to shift 2 EV LMVs in current year for the reduction of scope-3 emission at BALCO business. This year, we produced 58 kt of Green Aluminium (YTD) under the brand name (Restora) with a potential to produce 100 KTPA. This is a strong step towards our commitment to achieve GHG emission intensity reduction of 30% by 2030 and Net zero carbon by 2050. This year, we experienced total 33 Lost Time Injuries (LTIs) resulting in LTIFR of 0.41 at our operations. Further, we have developed the V-SAFE portal for timely identification and reporting of safety hazard and rectification of the same. Restora Ultra is an ultra-low carbon aluminium brand in collaboration with Runaya Refining. Near zero carbon footprint – one of the lowest in the world. Testament to our focus on ‘zero waste’ through operational efficiencies and recovery from dross. Towards the goal of Zero Harm in Safety, the Lanjigarh Unit undertook numerous safety measures to improve workplace condition in terms of site infrastructure, safety system & safety culture. Noteworthy infrastructural improvements In the current fiscal year, we have reduced our GHG emission intensity by 8.3% compared to the FY 2021 baseline. We have purchased 1,323 MU of Green Power March 2023 YTD and co-fired 5,141 tonnes of Biomass. Further, the Floating 148 149 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Solar Project is expected to be completed by Q3 FY 2024, thus strengthening our green power commitment. Management of hazardous waste such as spent Pot line, aluminium dross, and high volume low toxic waste such as fly ash, red mud etc. are material waste management issues for the aluminium business. During the year, our operations have utilised 106.74% of Ash and 99.34% Dross. Vedanta Aluminium has entered into a long-term partnership with Dalmia Cements for gainful utilisation of industrial by-products such as fly-ash and Spent Pot Lining (SPL) waste to manufacture ‘green’ cement. The partnership will enable Vedanta Aluminium’s plant at Jharsuguda to transport around 20 rakes of fly ash per month for 5 years to Dalmia Cement plants at Odisha, Chhattisgarh, Meghalaya, and Assam, and transport Spent Pot Lining (SPL) waste for 3 years to Dalmia Cement at Rajgangpur, Odisha. Jharsuguda operations has implemented Integrated Waste Management System by NEPRA for sustainable management of non-hazardous waste like plastic, paper, food, horticulture waste and others. This will enable us to move towards ‘Zero Waste to Landfill’ and will help us generate wealth out of waste. Till date, total 121 rakes had been despatched which is the highest ever ash despatch for Jharsuguda unit. BALCO is associated with Cement industries in the vicinity through road mode and striving to achieve economies of scale and enterprise solution which is environmentally friendly and cost effective. For the very purpose, BALCO has ventured into supplying the conditioned Fly Ash through Rake. This meaningful, sustainable increase in fly ash utilisation at locational, distant thermal power plant is mutual win for both Cement companies and BALCO. BALCO is also engaged in Mine back filling of Manikpur Mines which will further support the effort to utilise Fly Ash. Our Lanjigarh operation has placed an order for manufacturing of red mud bricks. It is in the direction of waste-to-wealth initiative. On similar lines, JSG unit is working with Runaya refining for extracting valuable metals from Dross as part of waste-to-wealth initiatives. The organisation is working proactively towards the vision of Zero Waste. Production performance Production (kt) FY 2023 FY 2022 % Change Cast Metal Production (kt) Alumina – Lanjigarh Total Aluminium Production Jharsuguda BALCO 1,793 2,291 1,721 570 1,968 2,268 1,687 582 (9%) 1% 2% (2%) Alumina refinery: Lanjigarh At Lanjigarh, calcined alumina production stands at 1.79 million tonnes, primarily due to the calciners shutdown for overhauling. Aluminium smelters We ended the year with record production of 2.29 million tonnes. Coal Security We continue to focus on the long-term security of our coal supply at competitive prices. We added Jamkhani (2.6 MTPA), Radhikapur (West) (6 MTPA), Kuraloi (A) North (8 MTPA), Barra coal blocks and have been declared Successful Bidder for Ghogharpalli Coal Block through competitive bidding process by GoI. We have operationalised Jamkhani Coal block in FY 2023 & intend to operationalise Kurloi (A) North and Radhikapur (West) in the next fiscal year. These acquisitions, along with 15 million tonnes of long-term linkage will ensure 100% coal security for Aluminium Business. We also look forward to continuing our participation in linkage coal auctions and secure coal at competitive rates. Prices Particulars Average LME cash settlement prices (US$ per tonne) FY 2023 FY 2022 % Change 2,481 2,774 (11%) Average LME prices for aluminium in FY 2023 stood at US$2,481 per tonne, 11% lower YoY. Aluminium LME has been steadily declining this year, owing to a recessionary market outlook coupled with the zero Covid policy of China. However, with the opening of the Chinese economy MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS coupled with the decrease in the inflationary pressure, the LME prices is expected to rebound. Further, the aluminium market is in a growth phase now with demand expected to be driven by sunrise sectors such as Electric Vehicle, Renewable Energy, Defence and Aerospace. Unit costs (US$ per tonne) Particulars FY 2023 FY 2022 % change Alumina cost (Lanjigarh) Aluminium CoP Jharsuguda CoP BALCO CoP 364 2,324 2,291 2,424 291 1,858 1,839 1,913 25% 25% 25% 27% During FY 2023, the cost of production (CoP) of alumina increased to US$364 per tonne due to lower production and headwinds in the input commodity prices. In FY 2023, the total bauxite requirement of about 5.5 million tonnes were met through domestic as well as import sources. In FY 2023, the COP of cast metal at Jharsuguda was US$2,291 per tonne, an increase by 25% from US$1,839 per tonne in FY 2022. The cast metal COP at BALCO stood at US$2,424 per tonne, increased by 27% from US$1,913 per tonne in FY 2022. This was primarily driven by the headwinds in input commodity prices. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % Change 52,403 5,837 11% 50,881 17,337 34% 3% (66%) During the year, revenue increased by 3% to `52,403 crore, driven by improved operational performance, strategic hedging gains, favourable exchange rate movement partially offset by reduced LME. EBITDA was down at `5,837 crore (FY 2022: `17,337 crore), mainly due to fall in LME, input commodity inflation partially offset by favourable exchange rate movements. Strategic priorities & outlook Our focus remains on capitalisation of market opportunities through execution of right levers. Foremost priority remains delinking production cost from external volatility. Lanjigarh expansion activities is underway with full force and an upside in volume is expected in the upcoming year. Vedanta Limited was also declared the preferred bidder for Sijimali at the recently concluded Bauxite mine auction. The same would be instrumental in meeting requirement for 5 Our core business priorities include: ESG: Safety & Well-being of all stakeholders, Low Carbon Green Aluminium Production (Restora, Restora Ultra), Diversity in Workforce, Circular Economy MTPA refinery operations. Full capacity production run rate at recently started Jamkhani mine should ease our dependence on spot market coal. This would be further augmented by operationalisation of other mines in the short to medium term. Effort would also be continued towards achieving better than best achieved operational performance along with increased volume delivery through debottlenecking and growth projects. Quality: Zero customer complaints Operational Excellence: Continual improvement in operational parameters Asset Optimisation: >100% capacity utilisation of assets through implementation of structured asset reliability program Growth: 1 MTPA BALCO smelter expansion, >100% value-added capacity Raw Material Security: Operationalise Sijimali bauxite mine, Lanjigarh expansion to 5 MTPA Product Portfolio: Improve value-added product portfolio with focus on low carbon aluminium for better realisation. Coal Security: Operationalise coal mines and improve linkage materialisation Pg. 51 150 151 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 POWER MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS TSPL has recycled 12.62% of the water used & reduce the fresh water consumption by various operation controls. TSPL continues its focus on energy saving projects such as High Energy Efficient Booster Pump at Unit#02, CWP RPM reduction, HPT performance improvement, replacement of conventional lighting fixtures with LED lighting fixtures. To stimulate efforts and reach towards new heights of sustainable business practices, TSPL established ESG transformation office. Under this initiative, TSPL has accelerated its efforts in Environment, Social and Governance aspects. TSPL ESG Transformation Office was created which included 12 communities of practice from each aspect of sustainability. Communities of Practice included Carbon, Water, Waste, Biodiversity, Supply Chain, People, Communities (CSR), Communication, Safety and Health, Acquisitions, Expansions. Each Community is led by a senior leader in the concerned department. Each community is driving sustainability initiatives in their community. In FY 2022-23, 45 new projects were identified, 38 initiatives completed and 62 improvement initiatives are in progress. The year in brief In FY 2023, TSPL’s (Talwandi Sabo Power Limited) plant availability was 82% and Plant Load Factor (PLF) was 67%. 14,835 million units Record overall power sales Occupational health & safety In FY 2023, TSPL focus on Category 5 Safety Incident elimination such as Critical Risk Management, Catastrophic Risk Management, Horizontal Deployment of Safety Alert Learnings,, Vedanta Safety Standard Implementation and Engineering/Controls such as Line of Fire Prevention and Safety improvement project. 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. Environment TSPL focus on environment protection measures such as maintaining green cover of over 800 acres, continue the expansion of green cover inside plant premises and nearby communities. TSPL ensures availability of environment protection system such as ESP, Fabric Filters, Water Treatment Plant and RO Plant. In Tailing Dam Management, TSPL has implemented all the recommendation of M/s Golder Associates for ash dyke. Additional GISTM Conformance Assessment of TSPL Ash Dyke Facility by ATC Williams, Australia & TATA Consultancy (TCE) as Engineer of Records (EOR) to ensure Ash Dyke stability to review dyke design, quality assurance during for ash dyke raising and quarterly audit of ash dyke facility. In FY 2023, TSPL achieved 83% Ash utilisation in Road Construction, in Building sector for bricks, blocks, cements and low-lying area filling. TSPL has signed various MoUs with stakeholders to increase ash utilisation. 152 153 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Strategic priorities & outlook During FY 2023, we will remain focussed 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; and Improve power plant operating parameters to deliver higher PLFs/availability and reduce the non-coal cost; Ensuring safe operations, energy & carbon management. Operations During FY 2023, power sales were 14,835 million units, 25% higher YoY. Power sales at TSPL were 10,744 million units with 82% availability in FY 2023. At TSPL, the Power Purchase Agreement with the Punjab State Electricity Board compensates us based on the availability of the plant. The 600 MW Jharsuguda power plant operated at a lower plant load factor (PLF) of 63% in FY 2023. The 300 MW BALCO IPP operated at a PLF of 66% in FY 2023. 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 Particulars FY 2023 FY 2022 % Change Sales realisation (`/kWh)1 Cost of production (`/kWh)1 TSPL sales realisation (`/kWh)2 TSPL cost of production (`/kWh)2 3.04 2.38 4.50 3.10 2.42 3.62 (2%) (2%) 24% 3.65 2.76 32% (1) Power generation excluding TSPL (2) TSPL sales realisation and cost of production is considered above, based on availability declared during the respective period Average power sale prices, excluding TSPL, lower by 2% and the average generation cost was lower at `2.38 per kWh (FY 2022: `2.42 per kWh). In FY 2023, TSPL’s average sales price was higher at `4.50 per kWh (FY 2022: `3.62 per kWh), and power generation cost was higher at `3.65 per kWh (FY 2022: `2.76 per kWh). Financial performance Particulars Revenue EBITDA EBITDA margin * Excluding one-offs (` crore, unless stated) FY 2023 FY 2022 % Change 7,201 851 12% 5,826 1,082 19% 24% (21%) EBITDA for the year was 21% lower YoY at `851 crore from `1,082 crore. Production performance Particulars FY 2023 FY 2022 % Change Total power sales (MU) 14,835 11,872 Jharsuguda 600 MW BALCO 300 MW* HZL wind power TSPL TSPL – availability 3,048 648 395 10,744 82% 2,060 1,139 414 8,259 76% 25% 48% (43%) (5%) 30% # Malco 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 January 2019 from CSERC for Conversion of 300 MW IPP to CPP w.e.f. 01 April 2017. During the Q4 FY 2019, 184 units were sold externally from this plant. 154 155 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 IRON ORE MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief • Removal of trade barriers from karnataka resulted in quick restart of export and enabled us to capture ~99% Export share from karnataka • • Restart of WCL Operations and successfully exported 0.2 million tonnes in this financial year Acquisition of Bicholim mines at lowest bid premium among all iron ore mines auctioned in FY 2023 5.3 million tonnes Production of saleable ore at Karnataka 696 kt Pig Iron production 0.7million tonne Iron ore sales at Goa which help us in tracking and giving health-related trend analysis of employees. In order to achieve highest levels of safety at site, we have identified key personnel from operation and maintenance to serve as Grid Owners in addition to their current roles and responsibilities. We have also conducted defensive driving trainings to further enhance driving skills thereby reducing the vehicle-related incidents. At VAB, we have conducted a training on crane and lifting safety for approving critical lift plan and better focus on safety in areas of lifting and critical lifts. We have also conducted rescue training for Confined space and Work at Height through a third party so as to authorise a shortlisted group of competent personnel as trained rescuers. To improve upon confined space safety, we have conducted “Authorised Gas Testers” training programme to strengthen our Confined space activities. At IOK, we have conducted rescue trainings through a third-party for Confined Space and Work at Height. Traffic Management & Road Safety Training was conducted by Rashtriya Raksha University involving selected employees and Business Partners. 4 modules of AR-VR have been Occupational health & safety With our vision towards the aim of Zero Harm, we are committed to achieve zero fatal accident at Iron Ore Business. Our Lost Time Injury Frequency Rate ("LTIFR") is 0.79 (FY 2023) compared to 0.83 (FY 2022). We are now focussing on bringing down the number of injuries by conducting a detailed review of critical risk controls through critical task audits, strengthening our work permit and isolation system through identification and closure of gaps, on site audits, increasing awareness of both Company and business personnel by conducting trainings as per requirements considering the sustainability framework. We have strived to enhance the health and safety performance by digitalisation initiatives such as usage of non-contact type voltage detectors, underground cable detectors. We have also implemented AI cameras (T-Pulse system) for reporting of unsafe acts/conditions automatically in areas where Camera infrastructure is available with central dashboard with all details, analysis, trends and risk category, which ensures effective and immediate closure of violations at site. At VAB, we have done Geo fencing to ensure unauthorised entries in most critical operational areas. Vedanta has launched a HSE-based portal by name V-Unifined (Enablon) for reporting, collating and analysing the HSE-related data across the Business which has become a way of life since its inception during the Financial Year. At VAB and IOK, we have launched 4 Critical Risk Management (CRM) verification by Line Managers and the observations are being tracked, analysed and rectification plan is in place. We have achieved target of 75% vs Planned. In Health function, we have also launched SEVAMOB digital platform for digitisation of Employee Medical Records 156 157 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Strategic priorities & outlook Our near-term priorities comprise: Restart mining operations at Goa Ramp up our operations in Liberia and setting up magnetite concentrator plant Green Mining leveraging, digitalisation, and Renewable energy In FY 2023, around 6 Ha of mining dump slope was covered with biodegradable geotextiles to prevent soil erosion & 55,000 native species saplings were planted. Various latest technologies like use of fog guns; environment-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. Production performance Particulars Production (dmt) Saleable ore Goa Karnataka Pig iron (kt) Sales (dmt) Iron ore Goa Karnataka Pig iron (kt) FY 2023 FY 2022 % Change 5.3 - 5.3 696 5.7 0.7 5.0 682 5.4 - 5.4 790 6.8 1.1 5.7 790 (2%) - (2%) (12%) (16%) (33%) (13%) (14%) Operations At Karnataka, production was 5.3 million tonnes. Sales in FY 2023 were 5.7 million tonnes, 17% lower YoY. Production of pig iron was 6,96,559 tonnes in FY 2023, lower by 12% YoY due to shut down in blast furnaces in FY 2023. 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 bought low grade iron ore in auctions held by Goa Government in Auction No. 26 & 27 in FY 2022. This opening stock of ore purchased in the auction and fresh royalty paid ore moved out of mines post the Supreme Court order, was then beneficiated and around 0.7 million tonnes were exported which further helped us to cover our fixed cost and some ore were used to cater to requirement of our pig iron plant at Amona. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % Change 6,503 988 15% 6,350 2,280 36% 2% (57%) In FY 2023, revenue increased to `6,503 crore, 2% higher YoY mainly due to restart of WCL operations. EBITDA decreased to `988 crore compared with `2,280 crore in FY 2022 was mainly due to decrease in sales at Karnataka and VAB and input commodity inflation. launched at IOK which includes LMV operation, wheel loader operation, fire extinguisher operation and engine maintenance. In FY 2024, we will be further launching remaining Safety Standard through CRM for strengthening our Fatality Prevention Programme. Environment At our Value-Added Business, we recycle and reuse all the process water. 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. 1,560 numbers of native species were planted in the year 2022-23 in green belt area of VAB along with 1,850 no. of native species plantation was done in surrounding villages of VAB. Also, Value Added Business received Consent to establishment for expansion project for installing Ductile Iron plant, oxygen plant & Ferro Silicon Plant along with increasing hot metal production capacity. At Iron ore Karnataka, continuing with its best practises, Company has constructed 38 check dams, 7 settling pond. Additionally, Company has de-silted 2 nearby village ponds increasing their rainwater harvesting potential by 20,000 m3/annum. 158 159 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 FY 2023, ESL Steel Limited (ESL) has achieved highest ever hot metal production of 1.37 million tonnes, up 1% YoY and highest ever saleable production of 1.29 million tonnes up 2% YoY. 196 kt 1.29 million tonnes Highest ever DIP production Saleable production 20% YoY ESL HSE/ESG Performance Occupational Health & Safety We, at ESL, believe that all accidents are preventable and to realise our vision of Zero Harm, we have carried out the following key initiatives for nurturing ZERO HARM culture across organisation. • Launched Project VIHAAN – Critical Risk Management to verify critical risks Go and NoGo implementation periodically for various critical controls viz. Environment Waste and Circular Economy We have achieved 100% utilisation of BF granulated slag and fly ash by re-using in cement plants & local brick manufacturers. Other types of waste viz., bottom ash, LD slag & core mould sand, we have achieved 98% of its utilisation by internal road making & mines back filling. Hazardous wastes are being sent to PCB authorised recyclers/re-processors. Climate Change • Reduction in False Air/Air leakages in Sinter Plant, Sinter Plant bed depth control, Fuel crushing index improvement has resulted in estimated decrease of tonnes of CO2e by 35,000 tonnes of CO2e • LD gas recovery project has been undertaken by repairing and revamping the Gas Holder facility, which has led to an estimated decrease of 18,480 tonnes of CO2e Biodiversity/Plantation • ESL has achieved 34.54% green belt development • Around 25,000 saplings have been planted inside KML to drive greenbelt development project • 10,000 fruit-bearing saplings have been distributed among 9 panchayats to drive greenbelt development in surrounding areas of ESL • Miyawaki afforestation of 2.5 acre has been commenced in Q4 with the target of about 55,000 saplings Water Management • 2 nos. of rainwater settling pits along with pumps have been installed to contain the flow from the stormwater drains across the plant. This has resulted in increase in ETP water intake and optimised the usage of stormwater by 350-400 KLD • 250 KLD sewage treatement plant has been • Digital Initiatives – Launched Cardinal Safety Rule Portal, Kiosk-based safety induction for drivers and QR-based fire equipment maintenance and tracking commissioned during Q4 which would reduce fresh water offtake by 250 KL/day. This would ensure saving of fresh water by 90,000 KL/annum • Capability Building – Engaged DuPont to train and develop trainers for implementing various safety standards (160+ developed through TTT) • Green Belt Development – Planted more than 35,000 samplings including 10,000 fruit-bearing saplings, achieved 33% greenbelt requirement this year • Occupational Health – Engaged M/s Apollo for managing OHC & Air Ambulance services, initiated medical consultation facility for employees and their families at Bokaro City and developed 500+ trained first aiders • Infrastructure – Conveyor guarding, drain covering, fire hydrant line revamping, settling pits, tarpaulin covering/uncovering platforms and man machine segregation across the plant roads • ESG – 60 projects have been identified out of which 10 have been completed and 34 have achieved IL 4 stage • Sp. Water – We have reduced our fresh water offtake from the reservoir by 1.7 million m3 through the following water stewardship programme. This has resulted in achieving specific water consumption of 2.88 m3/tcs from 3.00 m3/tcs 160 161 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 in higher cost of sales. We are trying to stable our raw material prices. We have acquired two iron ore mines to achieve raw material long-term security & pricing stability. 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 16 September 2020, 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 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. In furtherance of the Supreme Court orders for plant continuity, MoEF vide its letter dated 2 February 2022 has deferred the grant of Environment Clearance till Forest Clearance Stage-II is granted to ESL. ESL has submitted its reply against MoEF letter vide letter dated 11 February 2022 for reconsidering the decision and not linking EC with FC since as per the applicable law and available precedents, grant of FC Stage-II is not a condition precedent for grant of EC. CTO will be procured post furnishing the EC. The grant of FC was kept at abeyance for want of Forest Clearance. FC Stage-I is granted to ESL, while the FC compliance are under process. • Arresting water leakages and replacing firefighting pipelines • Increasing recycle percentage through installation of ZLD pump from 12% to 24% • Increasing cooling tower COC from 6 to 7 • Cleaning of backwash pipeline • Sp. Energy & GHG Emissions - Against the target of 7.97 Gcal/tcs, we have achieved 7.72 Gcal/tcs (YTD), several initiatives were taken such as: • Optimisation of compressor, blower speed, CT fans, AC & Light operation, power consumption of other circuit hot water circulating pumps by installing VFD with feedback system • ID Fan VFD Installation in Sinter Plant, SMS, Lime secondary fan • Reduction in False Air/Air leakages in Sinter Plant, Sinter Plant bed depth control, Fuel crushing index improvement has resulted in estimated decrease of tonnes of CO2e by 35,000 tonnes of CO2e • Blast furnace dedusting damper auto control • Improving fuel rate by 20 kg/tcs for BF3 and 7 kg/ tcs for BF2 resulting in reduction of 64,846.6 tonnes of CO2e Production performance Particulars Production (kt) Pig iron Billet TMT bar Wire rod Ductile iron pipes FY 2023 FY 2022 % Change 1,285 1,260 192 26 463 407 196 186 91 399 421 164 2% 3% (71%) 16% (3%) 20% Operations During FY 2023, we have achieved highest ever hot metal production of 1.37 million tonnes, up 1% YoY and highest ever saleable production of 1.29 million tonnes, up 2% YoY on account of increased availability of hot metal due to debottlenecking of blast furnace and operational efficiencies. The priority remains to enhance production of value-added products (VAPs), i.e., TMT Bar, Wire Rod and DI Pipe. ESL achieved 83% VAP sales, 5% improvement in FY 2023, in line with priority. There have been significant gains in Sales & NSR front. However, operational inefficiencies, higher raw material prices of coking coal & other market factors resulted MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Prices Particulars Pig iron Billet TMT Wire rod DI pipe Average steel price (US$ per tonne) (US$ per tonne) FY 2023 FY 2022 % Change 551 620 700 707 769 689 545 612 687 706 628 659 1% 1% 2% 0% 22% 4% Average sales realisation increased 4% YoY from US$659 per tonne in FY 2022 to US$689 per tonne in FY 2023. Prices of iron and steel are influenced by several macro-economic factors. These include global economic slowdown, US-China trade war, Russia-Ukraine war, duties on iron and steel products, 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 China. Even though the NSR increased by US$29 per tonne, we were unable to increase our EBITDA margin & landed to US$32 per tonne for the year (against US$74 per tonne in FY 2022) due to increased raw material prices of coking coal, which continued to remain high in in Q2 and Q3, when the market prices for steel products declined sharply. Unit costs Particulars FY 2023 FY 2022 % Change Steel (US$ per tonne) 656 585 12% Cost has increased by 12% YoY from US$585 per tonne to US$656 per tonne in FY 2023, primarily on account of increase in coking coal prices during the year, uncontrollable factors and operational inefficiencies. Financial performance Particulars Revenue EBITDA EBITDA margin FY 2023 FY 2022 % Change 7,852 6,474 316 4% 701 11% 21% (55%) - Revenue increased by 21% to `7,852 crore (FY 2022: `6,474 crore), primarily due to higher volume and NSR. EBITDA decreased by 55% to `316 crore mainly due to increased cost partially offset by increased sales realisation. Strategic priorities & outlook Steel demand is expected to surge owing to the gradual recovery in economic activities across the world, robust demand from key sectors and the emphasis of governments to ramp up infrastructure spend in India. With the growing demand for steel in India, ESL has prioritised to increase its production capacity from 1.5 MTPA to 3 MTPA by FY 2025 and 5 MTPA by FY 2027 with a vision to become high-grade, low-cost steel producer with lowest carbon footprint. 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 Innovation in Technology for sustainable operations/production Obtain clean ‘Consent to Operate’ and environmental clearances Development of low-cost CapEx products (Alloy Steel Segments and Flat Products) to capture market share Raw material securitisation through long-term contracts; approaching FTA countries for coking coal Optimise and significantly reduce logistics cost over time Ensure zero harm and zero discharge, fostering a culture of 24x7 safety culture 162 163 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 FERRO ALLOYS CORPORATION LIMITED (FACOR) MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief FACOR has achieved highest ferro chrome ore production of 290 kt, since acquisition through operationalisation of two ore mines. Also achieved high ferro chrome production of 67 kt and sales of 67 kt. 60 KTPA Commissioned new furnace 140 KTPA Total ferro-chrome capacity reached 290 kt Record chrome ore production Occupational Health Safety It is with deep sadness that we report the loss of two of our colleagues (Business partners) in work-related incidents at our managed operations in FY 2023, one each at Mining site and at Plant site. These incidents happened despite continuous efforts to eliminate fatalities and attain a Zero Harm work environment. A thorough investigation was conducted to identify the causes of these incidents and to share lessons learned across our sites, with the aim of preventing repeat or similar incidents. LTIFR for the year was 0.13 as compared to 0.25 in FY 2022. The reduction was driven by several safety awareness, investigation, and prevention initiatives. As compared to a year ago, number of LTIs decreased from 2 to 1 in this FY 2023. There has been greater management focus to bring a cultural change via felt leadership programs, town halls & recognition for near-miss reporting. 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. We follow a zero-tolerance policy towards any safety related violations with stringent consequence management. In FY 2023, FACOR complied with all its statutory requirements related to its Health, Safety and Environment. In terms of Safety, we continued creating awareness on various Safety topics through Monthly Safety Themes and Awareness programs. We successfully eliminated a few critical jobs from line of fire with “Installation Wagon Pusher Device at our Wagon Tripler area” and “Shifting of Ladle Cleaning area out of the hot metal handling zone”. We also completed our major Furnace relining job safely. AI-based Safety System “T-Pulse” was installed in CCTV Cameras of Charge Chrome Plant (CCP) Hot Metal Area to auto detect Unsafe observations. For Risk Management, EOT Cranes were provided with Anti-Collison device and Audio- Visual Alarm, Silpaulin were installed on weak benches of the Mines dump, Proximity sensors and Semi Fire Suppression System (SFSS) were installed at all Mines Dumpers and Inhouse Machine Guarding work was done throughout all the Conveyors across all the units. Environment For environment, on statutory front, Environment Clearance and Consent to Establish (CTE) was obtained for 33 MVA Furnace and Consent to Operate (CTO) was extended for Kalarangiatta Mines. We started utilising Spent resin which is a hazardous waste in our Powerplant (FPL) boiler after due approvals. For the first time, we started disposing our Plastic waste from both Plant and Mines to authorised vendors. Plantation of more than 12,000 saplings were conducted across all units of FACOR. Our business is committed to protect the environment, minimise resource consumption and drive towards our goal of Net Water Positivity and 100% Waste utilisation. A few more highlights for FY 2023 are: Installation of a new Sewage Treatment Plant Installation of Weather Monitoring Station Installation of Ambient Air Quality Monitoring System (AAQMS) Conducted CGWA Water Audit and Ground Water Impact Assessment Velocity of flue gas – Installation of Stack & integrated with CEMS data at FPL Installation of CEMS analysers at Gas Cleaning Plant 164 165 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS At Charge Chrome Plant (CCP), We recorded Ferrochrome metal volume of 67 kt in FY 2023. We started blending Met Coke with Anthracite coal and Coke Fines Briquettes and were able to achieve average blending of 20% (15% Anthracite Coal and 5% Coke Fine Briquettes) in FY 2023 from 14% of FY 2022. We also reduced our specific Power consumption up to levels of 3,316 kWh/t against 3,345 kWh/t. In the month of January 2023, we have made second highest ferro chrome production of 6,840. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % Change 768 149 19% 830 325 39% (8%) (54%) - Revenue decreased by 8% to `768 crore (FY 2022: `830 crore), primarily due to lower sales volume. EBITDA decreased by 54% to `149 crore mainly due to lower sales volume and higher cost. Production performance Strategic priorities & outlook Particulars FY 2023 FY 2022 % Change Ore Production (kt) Ferrochrome Production (kt) Ferrochrome Sales (kt) Power Generation (MU) 290 67 67 112 250 75 77 294 16% (11%) (12%) (6%) At Mining division, we recorded highest ever Chrome Ore production of 290 kt in FY 2023 since acquisition. Through disrupt ideas and out of the box thinking, we also achieved highest ever monthly and quarterly Ore Production of 49 kt in April 2022 and 140 kt in Q1 FY 2023 since acquisition. Ensuring our commitment towards zero harm, we have installed fatigue monitoring systems, AFDSS and proximity sensors in all tippers. The mining division has achieved a milestone in observational reporting since FY 2022, through state-of-the-art inhouse developed ‘FACOR – SO’ mobile application along with geo-tagging. Expansion of Growth Capex project of 300 KTPA Expansion of Mines from current capacity of 290 kt to 390 kt Metal capacity addition of 76 KTPA through new 33 MVA Furnace 100 MW Power Generation & sale of additional power New COB plant commissioning of enhanced capacity of 50 TPH 166 167 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 COPPER 168 MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The year in brief Silvassa operations continued to deliver 20% growth in sales volume on YoY basis and largely catering to India's domestic copper requirement. The copper smelter plant at Tuticorin was under shutdown for the whole of FY 2023, while we continue to engage with the Government and relevant authorities to enable the restart of operations at Copper India. 148 kt Cathode production from Silvassa 18% YoY Occupational Health & Safety The lost time injury frequency rate (LTIFR) was 2.77 in FY 2023 (FY 2022: 0). Dupont Process Safety Management (PSM) Tool was launched for addressing the core elements of safety driven by sub committees under each PSM element. Received 4 Star Safety Rating from British Safety Council. We conducted safety stand-downs to communicate the learnings from safety incidents and prevent future incidents. 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. Environment Aligned with the Vedanta’s vision to reach net zero emissions by 2050, Sterlite Copper has entered into a renewable energy sourcing agreement to produce Green Copper using 100% renewable energy & implemented AI & ML based Smart fuel optimisation for combined targeted GHG Emission reduction by 68,000 tCO2. 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. The site retained its ISO accreditation in safety, environment and quality management systems and the opportunity of a lull in production was used to review and further improve these systems. Production performance Particulars Production (kt) India – cathode Sales FY 2023 FY 2022 % Change 148 164 125 137 18% 20% Operations Copper production operations in Silvassa increased by 18% to 148 kt and have also seen growth of 20% in terms of sales volume and realised highest sales after closure of the Tuticorin unit and improved operational efficiencies, debottlenecking & capability building initiatives carried across the plant, the year also marked remarkable growth in free cash flow. 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 Tamil Nadu State Govt. in the Hon’ble Supreme Court. The Company had filed a Writ Petition before the 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 as well as trial operation of the plant. The matter was then listed on 2 December 2020, before the 169 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Prices Particulars Average LME cash settlement prices (US$ per tonne) FY 2023 FY 2022 % Change 8,530 9,689 (12%) Average LME copper prices reduced by 12% compared with FY 2022 predominantly due to low demand in China owing to COVID restrictions. Financial performance Particulars Revenue EBITDA EBITDA margin (` crore, unless stated) FY 2023 FY 2022 % Change 17,491 15,151 (4) 0% (115) (1%) 15% 97% During the year, revenue was `17,491 crore, an increase of 15% on the previous year’s revenue of `15,151 crore. The increase in revenue was mainly due to higher volume, favourable exchange rate partially offset by lower Copper LME prices. EBITDA improvement `111 crore mainly on account of improved operational efficiencies, higher volumes and increase in Sales Margin largely offset by a onetime charge against duty entitlement scripts of `64 crore. 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; Improving operating efficiencies, increasing Sales Margin, reducing our cost profile; Upgrade technology & digitalisation to ensure high-quality products and services that sustain market leadership and surpass customer expectations; and Continuous debottlenecking and upgrading our processing capacities for increased throughput. Supreme Court. The Bench after having heard both the sides on the interim relief of trial operation of the Plant, concluded that at this stage the interim relief could not be allowed. Further, the matter was listed as item no. 22 on 10 April 2023 and was taken up and heard by the Supreme Court. The Bench allowed the activities as permitted in the letter of the Additional Chief Secretary to the district collector, namely: I. II. Gypsum evacuation Operation of Secured Landfill (SLF) leachate sump pump III. Bund rectification of SLF - 4 IV. Green-belt maintenance 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. MANAGEMENT DISCUSSION AND ANALYSIS INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS PORT BUSINESS Vizag General Cargo Berth (VGCB) The volumes handled increased slightly by 1% YoY and the despatch volume increased by 4% YoY. 3% of the total volumes handled represents Multi-cargo (i.e., other than coal) under supplementary agreement signed with Visakhapatnam Port Authority (VPA). Pg. 56 Risk Management Vedanta has a well-defined risk management framework involving identification, evaluation, mitigation and monitoring of all risks to meet its objectives. This is enabled by a robust process that ensures all risks are identified at individual business level and across ongoing projects. The entire mechanism is led by structured risk management system and governance framework to ensure monitoring at multiple levels, and thus ensure operating controls are aligned to vision, mission and strategy. All the respective businesses of Vedanta undertake to review on a quarterly basis the risks relevant to it, the risk trend, control measures and actionable. Each business also develops its risk matrix and risk register, basis which the Group's principal risks are identified, and response mechanism formulated. Vedanta’s risks are broadly classified under sustainability risks, operational risks, compliance risks and financial risks. Pg. 102 Human Resources People are a key resource at Vedanta, and the Company strives to give them an enabling and fulfilling workplace. This is achieved through sustained actions around improving health and safety, driving diversity, equity and inclusion, and facilitating them equal learning and development opportunities. Transforming workplace is an important pillar in Vedanta’s ESG strategy, and the Company is undertaking definitive actions to achieve the various goals set under it. Vedanta maintains a strong focus on attracting and retaining the best employees, which now includes finest minds from over 30 countries. The Company has a robust mechanism to hire talent from campuses and groom them. It also has multiple programs to build leadership, including ‘ACT-UP’ to identify and nurture talent and ‘Emerging Leaders Programme’ to identify and elevate individuals to CXO roles. During FY 2023, more than 500 employees were elevated through various programs. Vedanta is further using digital technologies to enhance learning experiences through initiatives like ‘Gurukul’ for knowledge-sharing and ‘Knolskape’ for simulation-based learning. The Company has been actively promoting diversity and inclusivity with focus on improving representation of women, LGBTQ+ and other underprivileged or underrepresented communities. Programs like ‘V Lead’ and ‘V Engage’ are enabling this. The Company has also adopted a globally benchmarked methodology for rewarding and motivating its people and business partners, for long-term success. To notch-up safety, the Company launched HSE digital – incident management module in FY 2023 and also initiated roll-out of a critical risk management (CRM) module. The Company’s robust people practices have resulted in several prestigious awards including Great Place to Work and Kincentric Best Employer 2022. As of 31 March 2023, the Company had 87,500+ in total workforce, with women representation increasing to 14% from 11% previous year. Pg. 66 Information Technology Technology implementation centred around digitalisation, automation, data analytics and Industry 4.0 technologies are major enablers of growth and future-readiness at Vedanta. The Company has made several investments towards this to enhance operational productivity, safety and sustainability. 100% of the Company’s workforce at digitally literate. Vedanta is currently implementing its digital transformation phase-2 project, aimed at becoming smarter and data-driven. Towards this, investments are being made in advanced technologies like advanced process control, digital twin, predictive analysis and asset performance monitoring among others. They are set to make the operations more reliable and efficient, with the use of data to analyse performance and take necessary actions. 170 171 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS’ REPORT Dear Members, Your Directors take pleasure in presenting the 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 of Vedanta Limited ("Company") for the financial year ended 31 March 2023. 172 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 1. KEY BUSINESS, FINANCIAL AND OPERATIONAL HIGHLIGHTS COMPANY OVERVIEW Vedanta Limited ("Vedanta" or "Company"), a subsidiary of Vedanta Resources Limited, is a leading global natural resources conglomerate operating across India, Namibia, South Africa, Liberia and UAE. It is headquartered in Mumbai, India. Vedantahasadiversifiedportfolioandproduces commodities vital for global decarbonisation and materials intensive energy transition. The Company produces aluminium, copper, zinc, lead, silver, iron ore, steel, ferro chrome, oil & gas, nickel, cement and commercial energy. It strives to create long-term value for all our stakeholders through exploration, discovery, sustainable development andutilisationofdiversifiednaturalresources.The Company’s steadfast focus remains on delivery and operational excellence while increasing technology adoptionanddigitalisationtoenhanceprofitabilityand deliver metals of the future. Vedanta’s strategic priorities, while moving towards responsible growth, are good governance and social licence to operate. The Company demonstrates world- class standards of governance, safety, sustainability, and social responsibility. It's our fundamental values of “Trust, Entrepreneurship, Innovation, Excellence, Integrity, Care and Respect” that guide and help us accomplish our purpose. These serve as the foundation for everything we do and accomplish. Furthermore, India is Vedanta's largest market, which is one of the most stable and fastest growing economies in the world. India’s continued strength augurs well for its business performance. Aluminium • Largest aluminium capacity in India with captive power and an aluminarefinery • 9th largest Aluminium producer globally in terms of smelting production Zinc & Silver • One of the largest integrated zinc- lead smelter • Rampura Agucha - largest underground mine globally • 5th largest silver producer globally • Gamsberg - one of the largest deposits in the world Oil & Gas Iron & Steel • India’s largest private- sector crude oil producer • One of the lowest cost producers in the world • Strong exploration fundamental supports reserves and resources growth (46 OALP Blocks, 10 DSF Blocks and 1 CBM Block) • India’s largest private sector exporter of iron ore since 2003, according to the Federation of Indian Mineral Industries • ESL Steel is engaged in the manufacturing of steel with a total current capacity of 1.5 million tonnes per year and the potential to increase to 3 million tonnes per year Complemented by other key business segments including Copper and Power Uniquely Positioned to Deliver Sustainable Value World-Class Natural Resources Powerhouse Competitive position in Indian and Global market • Diverse portfolio, strong exposure to right commodities — • Well-placedtobenefitfromgrowingIndianeconomy,favorable Aluminium, Zinc, Silver, Oil & Gas regulatory environment • Tier-1 low-cost assets with margin stability through commodity cycle • Strong management team with track record of delivering growth • Long-life assets with exploration upside • Naturalbenefitfromlargemarketsizeandsupply- demand gap Delivering growth by capacity expansion Contributing to a sustainable development • Production ramp-up across all businesses • Unlockoperatingefficienciesthroughtechnologyand digitalisation • Turnaround performance of acquisition assets • Net Zero carbon by 2050; reduce 25% carbon emissions by 2030 • Net water positive by 2030 • Channeling innovation for a greener business model • Uplifting lives of people where we work and beyond • Contributed ~`73,486 crore to exchequer in FY 2023 173 DIRECTORS’ REPORT GROUP COMPANY PERFORMANCE Financial Highlights Revenue `1,45,404 crore All Time High EBITDA `35,241 crore 2nd highest EBITDA Margin1 28% ROCE ~21% PAT `14,503 crore FCF (pre capex) `28,068 crore All Time High Dividend Declared `101.5 Per Share C&CE `20,922 ROCE: Return on Capital Employed | PAT: Profit after Tax | FCF: Free Cash Flow | C&CE: Cash and cash equivalent 1. Excludes custom smelting at Copper Business • • • • Historic high shareholders return; declared interim dividend of `101.5 per share Highest ever contribution to exchequer ~`73,486 crore in FY 2023 Continue to maintain strong double-digit return on capital employed ~21% Net Debt/EBITDA of ~1.28x, maintained within capital allocation framework • Record Free cash flow (pre capex) of `28,068 crore, up 3% YoY Thestandaloneandconsolidatedfinancialstatementsof theCompanyforthefinancialyearended31March2023, prepared as per Indian Accounting Standards ("Ind AS") and in accordance with the provisions of the Companies Act, 2013 (the "Act") and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") forms part of this Annual Report. Operational Highlights Record production across key business Other key achievements Aluminium: 2.3 million tonnes HZL: crossed 1 million tonnes mark • • MIC: 1.062 million tonnes Refinedmetal:1.032milliontonnes Gamsberg: 208 kt, up 22% YoY ESL: saleable production of 1.3 million tonnes Jamkhani: Production commenced Coal Mines • • Chhotia restarted Successful bidder for: • Bicholim iron ore mine in Goa • Sijimali bauxite mine • Ghogarpalli and Barra coal block FACOR New Furnace 60 KTPA commissioned Cairn - 10-year PSC extension for RJ block • Aluminium: Highest ever Aluminium production of 2,291 kt, up 1% with Jharsuguda ramp-up • Zinc India: Historichighrefinedmetalproductionat1,032kt,up7%YoY • Zinc International: Gamsberg achieved record production of 208 kt, up 22% YoY • Oil & Gas:CommencedfirstGasandCondensateproductionfacilityinJayafieldofOALPblock • IOB: Commenced commercial production at Nicomet - India’s only Nickel Cobalt operations • Steel: Highest ever hot metal production of 1,376 kt • FACOR: Achieved all time high ore production of 290 kt, up 16% YoY • Copper India: 148 kt Cathode production from Silvassa, up 18% YoY Business highlights Zinc India • Record ore production of 16.74 million tonnes • Highest ever annual mined metal production of 1,062 kt, up 4% YoY Highesteverannualrefinedzinc-leadproductionof 1,032 kt, up 7% YoY • Zinc International • Record mined metal production at Gamsberg of 208 kt, up 22% YoY. On track to surpass design capacity in FY 2024 SignificantincreaseinBMMproductionYoYby25%to65kt • 174 Oil & Gas • Average gross operated production of 143 kboepd, down 11%YoY,owingtonaturalfielddecline.Thedecline hasbeenpartiallyoffsetbynewinfillwellsbrought online across all assets and exploration success in Ravva asset • Key growth projects update: Infilldrillingwascarriedouttosustainvolumesin Mangala, Bhagyam, Aishwariya, Tight Oil (ABH), Tight Gas (RDG), Satellite Field (Raag Oil, Tukaram) and Offshore (Ravva, Cambay) 74 wells drilled and 63 wells hooked up during FY 2023 across all assets VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 OALP and DSF - Commenced production from Jaya andHazarigaonfields.Drillingpreparationsare ongoing in West-Coast Offshore to drill a moderate risk-high reward prospect (risked resource potential of 42 mmboe) within the Kutch-Saurashtra basin Aluminium • Highest ever aluminium production at 2,291 kt. Continue to be the largest primary Aluminium producer in the country AluminaproductionfromLanjigarhrefineryat1,793kt, down 9% YoY Power • Iron Ore • • • • • • Record overall power sales at 14,835 million units, higher by 25% YoY driven by improved performance of Talwandi Sabo Power Limited ("TSPL") and Jharsuguda TSPL achieved highest ever PLF of 67% with lowest ever auxiliary power consumption of 6.86% TSPL plant availability was 82% in FY 2023 Production of saleable ore at Karnataka at 5.3 million tonnes Pig Iron production at 696 kt Iron ore sales at Goa at 0.7 million tonnes INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Steel • FACOR • • • • • • Highest ever hot metal production of 1.37 million tonnes, up 1% YoY Highest ever saleable production of 1.28 million tonnes post-acquisition, up 2% YoY Highest ever DIP production of 196 kt, up 20% YoY Record chrome ore production recorded at 290 kt, up 16% YoY Ferro chrome production of 67 kt, down 11% YoY and sales of 67 kt, down 12% YoY Copper India • Due legal process being followed to achieve a sustainable restart of operations Cathode production from Silvassa was 148 kt, up by 18% YoY driven by continuous debottlenecking of plant capacityandimprovedoperationalefficiencies Enhanced product portfolio to include Research Designs and Standards Organisation approved 19.6 MM and 23.5 MM Rod The details of the business, results of operations and the significantdevelopmentshavebeenfurtherelucidated in Management Discussion and Analysis section of the Annual Report. ESG Highlights RE Power 1,636 MW PDA in place 2 Bn+ Units utilised Waste Utilisation 162% HVLT usage 204% Fly Ash usage Water Positivity 4 Units Water +ve 29.4% Water Recycling Nand Ghars 4,500+ Biomass ~78,000 tonnes of Biomass firing (4x more than FY 2022) ESG Ratings 6th Global ranking on Dow Jones Sustainability Index ("DJSI") GHG Intensity 6.24 tCO2 per tonne of metal (4% lower from FY 2021 baseline) PDA: Power Delivery Agreement Biodiversity 1 million trees Planted as part of commitment to plant 7 million trees by 2030 Gender Diversity 14% (vs 11% in FY 2022) • Ranked 6thamongDJSI’stop10globaldiversifiedMetalandMiningpeers • Cairn, IOB, VZI- BMM achieved water positivity • Workplace gender diversity increased to 14% from 11% in FY 2022 • Biomass usage improved to 78,000 tonnes, 4x higher than FY 2022 • 1 million trees planted as part of the commitment to plant 7 million trees by 2030 • 4,500+ Nand Ghars created for women and child welfare • Spent `454 crore on CSR initiatives, positively impacting 44 million lives Thedetailsofthebusiness,resultsofoperationsandthesignificantdevelopmentshavebeenfurtherelucidatedinESG section of the Annual Report. 175 DIRECTORS’ REPORT Strategy to enhance long-term value Strategic Priorities Committed to ESG leadership Augment reserves and resources base Operational excellence and cost leadership Focus Area • Achieve net zero carbon mission by 2050 and water positivity by 2030 • Disciplined approach to exploration • Focus on full capacity utilisation • Improve business efficiencies • Maintain 1st quartile cost curve positioning globally • Digital transformation Optimise capital allocation and maintain strong Balance Sheet • Maximise free cash flow and optimise leverage • Disciplined capital allocation • Proactive risk management Delivering on growth opportunities • Timely execution of growth projects • Focus on growing our operations organically throughbrownfield opportunities KEY EVENTS DURING THE YEAR Delisting of American Depositary Shares from New York Stock Exchange and Termination of American Depositary Share Program, and Deregistration from U.S. Securities & Exchange Commission The Company had announced its intention to delist American Depositary Shares (“ADS”) from the New York Stock Exchange (“NYSE”) and to terminate its American Depositary Share Program on 23 September 2021. The ADSoftheCompanyhavebeendelistedfromNYSE effective close of trading on NYSE on 29 October 2021. ThisfollowsthefilingdonebytheCompanyofForm 25 with Securities and Exchange Commission (“SEC”) on29 October2021.Asaconsequenceofthedelisting becoming effective, termination of the Deposit Agreement under which the ADS were issued (the “Deposit Agreement”) has also become effective close of trading on NYSE on 08 November 2021. The said action has no impact on the current listing status or trading of the Company’s equity shares on BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE"). Infurtherancetoabove,theCompanyhadfiledForm15Fon 01 December 2022 with the SEC to deregister the ADS and the underlying equity shares pursuant to the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act”). As a result, the Company’s reporting obligations under the Exchange Act were ceased and the Company has been deregistered with SEC under the Exchange Act effective from 01 March 2023. The complete details can be accessed at www.vedantalimited.com. Scheme of Arrangement between Vedanta Limited and its Shareholders under Section 230 and other applicable provisions of the Companies Act, 2013 The Board of Directors of the Company, basis the recommendation of the Audit & Risk Management Committee and Committee of Independent Directors of the Company, at its meeting held on 29 October 2021, approved the Scheme of Arrangement between the Company and its shareholders under Section 230 and other applicable provisions of the Act (“Scheme”). The Scheme provides for capital reorganisation of the Company, inter alia, providing for transfer of amounts standing to the credit of the General 176 Reserves(asdefinedintheScheme)totheRetained Earnings(asdefinedintheScheme)oftheCompanywith effect from the Appointed Date. The National Company Law Tribunal, Mumbai Bench (“NCLT”) vide its order dated 26 August 2022 (“NCLT Order”), inter alia, directed the Company to: 1. 2. Convene meeting of its equity shareholders to seek their approval to the Scheme; and Fileconsentaffidavitsofallthesecuredcreditors and unsecured creditors of at least value of 90% of unsecuredcreditors,atthetimeoffilingtheCompany Scheme Petition. In this regard, a meeting of the equity shareholders of the Company was held on 11 October 2022 and the proposed Scheme was approved by the equity shareholders with requisite majority. The Company is in the process of complying with the further requirementsspecifiedintheNCLTOrder. Pursuant to the Scheme, the Company will possess greater flexibility to undertake capital related decisions and reflect amuchefficientbalancesheetoftheCompany.The Scheme is in the interest of all stakeholders including public shareholders. The complete details can be accessed at www.vedantalimited.com. Scheme of Amalgamation of Facor Power Limited into Ferro Alloys Corporation Limited and their respective Shareholders and Creditors under Section 230 to 232 of the Companies Act, 2013 The National Company Law Tribunal vide order dated 15 November 2022 has sanctioned the Scheme of Amalgamation of Facor Power Limited (“Transferor Company”), subsidiary of Ferro Alloys Corporation Limited into Ferro Alloys Corporation Limited (“Transferee Company”), a subsidiary of Vedanta Limited and their respectiveshareholdersandcreditorsunderSection230 to 232 of the Act. The Transferor Company was dissolved without winding-up and merger effected from 22 November 2022uponfilingofcertifiedcopyofNCLTOrderdated 15 November2022inINC-28. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Tie-up for long-term renewable power supply for the Vedanta Group The Company has entered into certain long-term power security agreements to source Renewable Energy (“RE") for its operations across India, which will be created through dedicated Special Purpose Vehicle (“SPV") for each entity. The Power Delivery Agreements (“PDA") have been executedwithSPVsi.e.,affiliatesofSerenticaRenewables India Private Limited (“SRIPL”) to supply 1,626 Megawatts (“MW") of renewable power by 2025 which will not only strengthen our commitment towards a clean future but also help reduce emissions to the tune of ~6.6 million tCO2e. The project is being conceived to be built under Group Captive model under an SPV, wherein the Company will own 26% of equity. SRIPL shall help in setting-up RE Developer (the "Project"/"SPV") on Build Own Operate (“BOO”) basis for supply of the Contracted Capacity of Renewable Power to Captive User/Consumer, under Group Captive arrangement on long-term basis as per the terms of the transaction document. Aligned with Vedanta’s ESG vision of “Transforming for Good”, the move marks the beginning in the series of actions by the Company to deliver on its goal of becoming “Net Zero Carbon by 2050 or sooner” and “using 2.5 GW of Round the Clock ("RTC") Renewable Energy for its operations by 2030”. The complete details can be accessed at www.vedantalimited.com. ACQUISITIONS In FY 2023, Vedanta Limited acquired Athena Chhattisgarh Power Limited (“ACPL”), under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016 (“IBC”). ACPL is building a 1,200 MW (600 MW x 2) coal-based power plantlocatedatChampadistrict,Chhattisgarh.Thefirst 600 MW unit is ~80% completed and estimated to be fully completebyFY2025.Theplantisexpectedtofulfillthe captive power requirements for the company’s aluminium business. Additionally, Vedanta Limited has been declared as successful bidder in FY 2023 for Meenakshi Energy Limited (“MEL”) under Corporate Insolvency Resolution Process (“CIRP”) under IBC. MEL is a 1,000 MW coal-based power plant located at Nellore, Andhra Pradesh comprising of two phases of 300 MW and 700 MW. The 300 MW is completed and has been operational in past. The plant utilises a mix of imported and domestic coal and is envisaged to function as IPP. The acquisition is currently pending NCLT approval. In furtherance to the same, Vedanta Limited has also been declared as preferred bidder for various mining and composite licenses namely Bicholim Iron Ore block in Goa, Sijimali Bauxite and Ghogharpalli Coal blocks in Odisha, Ghanpur Mudholi Copper and Sasoli Iron blocks in Maharashtra and Kewaldabri (Ni and Cr) block in Chhattisgarh. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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. HZL: As we march on the journey of 1.25 MTA MIC expansion, several projects have been undertaken throughout the year. RD mill revamping project for capacity enhancement to 1.3 MTPA will improve plant reliability by replacing obsolete Grinding, Floatation and Filtration and improve recovery of Zinc, Lead, Silver. The project is under full swing and is scheduled to be commissioned in Q1FY2024. In line with our vision of increasing metal volumes to 1.2 MTPA, new 160 KTPA Roaster will be installedinDebariforwhichEPCpartnerfinalisationis underprogressandfinalcommissioningistargetedby Q4FY2024. A new project of Hindustan Zinc Alloys is under finallegofcompletionwithsiteexecutioncompleted and mechanical completion of line-1 is scheduled for completion by early Q1FY2024. Another project of 1.6 LTPA Fumer plant will help in additional metal to the tune of 40 TPA. The plan is to complete commissioning of plant through OEM support in Q1FY2024. HZL is also setting up new Fertiliser Plant in Chanderiya for which partner has been locked in and order placement to be completed in Q1FY2024andfinalcompletionin24months.Forfurther phase of expansion of Mines and Smelters, studies are under progress and results are expected in FY 2024. Aluminium: We are currently India’s largest primary Aluminium producers and aim to be among the top 5 global producers with expansion to 3 MTPA capacity along with 100% backward and forward integration. We have recently concluded ramp-up at Jharsuguda to 1.8 MTPA, a significantsteptowardsourgoal.Expansionactivitiesarein full swing at Bharat Aluminium Co. Limited (“BALCO") and 1MTPAprojectisestimatedtobecompletedbyfirsthalfof FY 2025. We are committed to our journey of 100% Value Added Product (“VAP") Production and the current project pipeline is on track for completion in FY 2024. This would help us cater to growing demand from sunrise sectors such as EVs, Renewables, Defence, and Aerospace. This facility is expected to cater to more than 100 downstream SMEs. Lanjigarhrefineryexpansionfrom2MTPAto5MTPA remainsourkeyfocusareawithfirstaluminaexpectedin FY 2024. LOI has also been issued for the Sijimali bauxite block, with an estimated reserve of 311 million tonnes of bauxite. On the Coal front, operationalisation of Jamkhani coalminewasasignificantmilestoneinthecurrentyear. We also expect commencement of Kuraloi A North and Radhikapur West mines in the next 12-18 months. We were also declared the preferred bidder for Ghogharpalli coal block and Coal Mine Development & Production Agreement (“CMDPA") has been executed for Barra block. Collectively, this would comfortably help us gain 100% coal security and delink our operations from market volatility. VZI: In line with our vision of increasing MIC from 300 KTPA to 600 KTPA, Zinc (“Zn") Concentrator Plant with capacity of 200 KTPA is on track, EPC partner has been locked 177 DIRECTORS’ REPORT and major long lead items ordering completed, project commissioning expected in Q1FY2025. For 210 KTPA GamsbergSmelterproject,partnerfinalisationisunder progress and project will be commissioned in Q4FY2025. The continuous focus is on increasing Gamsberg phase-2 will further enhance the mining capability and processing capacity to double the current volumes. Gamsberg mining potential from 45 MTPA to 100 MTPA through engaging various mining partners. Cairn: we remain committed to our journey of producing 50% of India’s Oil & Gas production. In-line with our vision, we brought 55 wells online in FY 2023 across various assets. In Ravva, total 5 wells were put on production which led to increase in production from 10 kboepd to 13 kboepd. Cambay campaign– 3 wells were put online leading to increased volumes from 11kboepd to 13 kboepd. RDG Campaign – total 14 wells were put on production thereby increasing volume from 25 Kboepd to 29 Kboepd. WecontinuetoundertakefurtherInfillDrillingcampaigns acrossfieldstomaximiserecoveryandexploration campaigns to discover resources for further growth. We also expanded our geographical footprint and commenced production from Assam and Onshore Gujarat, thereby helping us diversify our asset base. ESL: 3 MTPA project - The steel expansion project with an investment of `2,696 crore comes with additional Blast Furnace of 1,264 m3 supported by a 0.5 MTPA Coke Ovens, 2.4 MTPA Pellet Plant, 800 TPD Oxygen Plant and other auxiliaries and infrastructure upgradation including Railway siding to Plant head. This project also comes with a new 0.18 MTPA Ductile Iron Pipe Plant which will help us to maximise VAP. The project along with debottlenecking of BF#3, Sinter Plants and new LRF will take us to the capacity of 3 MTPA with the lowest quartile cost and premium product portfolio. Expected HCO #1 commissioning by Q1FY2024, RMHS by Q3FY2024, BF #1 completion by Q4FY2024. FACOR: This year, in March 2023, we have successfully commissioned the project of 33 MVA Furnace which will take Fe-Cr production from 90 KTPA to 15 KTPA. Additionally, 0.5 MTPA COB Tomka project for deploying additionalChromeoreBeneficiationplantoutsidethe mining lease located in TOMKA, TOR has been approved, PH will be conducted soon. Project is expected to be completed by October 2023. Nicomet: In FY 2023, we have successfully operationalised Nickle plant and were able to stabilise the plant operations for producing premium quality of our product. Additionally, we have successfully commissioned Nickle metal plant for producing Ni metal in Q4FY2023. First dispatch of NiSo4 and Ni metal executed in March 2023. Going forward, focus is on developing customer base in domestic and export market. 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,ourfirmbeliefinpercolatingthebenefitsofour 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 historicaltrendshelpedustoreaffirmtherealisationof competent numbers for FY 2023. Return to Shareholders (` per share) 0 5 . 1 0 1 0 0 5 4 . 5 8 8 1 . 0 9 3 . 0 5 9 . FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ~30% dividend yield with record dividend declaration of `101.50/ share in FY 2023. The Company has declared the following dividends during the year in compliance with the Dividend Distribution Policy: Particulars Date of Declaration Record Date Date of Payment Rate of Dividend per share (Face Value of `1 per share) % Total Payout (` in crore) 1st 28 April 2022 09 May 2022 Interim Dividend – FY 2023 2nd 3rd 19 July 2022 22 November 2022 27 July 2022 30 November 2022 04 February 2023 5th 27 January 2023 28 March 2023 07 April 2023 4th Within 30 days from the date of declaration 31.50 19.50 17.50 12.50 20.50 3,150 11,710.14 1,950 7,249.13 1,750 6,505.63 1,250 4,646.88 2,050 7,620.89 Pursuant to the Finance Act, 2020, dividend is taxable in the hands of the shareholders with effective from 01 April 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 and Transfer Agent (“RTA") and the Company from the Depositories. TheBoardofDirectorsdidnotrecommendanyfinaldividendforthefinancialyearended31March2023. 178 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS CREDIT RATING Your Company is rated by CRISIL and India Rating and Research Private Limited on its various debt instruments. A detailed status of the Credit Ratings on various facilities including Bank Loans, Working Capital Lines, Non-Convertible Debentures and Commercial Papers forms part of the Report on Corporate Governance Report of this Annual Report. ECONOMIC RESPONSIBILITY Vedanta guided by its vision and mission adopts a comprehensive value creation process that leverages on all available resources and relationships while addressing material issues and strategic focus areas. At the core remains ESG, where our purpose ‘Transforming for Good’, supplemented by the more comprehensive ‘Transforming Together’ theme is deeply embedded into this value creation process. The inherent community value empowers our decision-making to drive business success, while contributing to the nation’s growth. Our continuous endeavour is to build a sustainable world with a shared value creation for all stakeholders. Our value creation drive is focussed on optimising capital allocation and maintaining a strong balance sheet while generating strong free cash flows. We invest in best-in-class equipmentandmachinerytoensureoperationalefficiencyand safety, at both our current operations and expansion projects. We promote diversity, equality and inclusivity, while also investing in people development, safety and well-being. We empower them to think independently, creatively and innovatively. We strive to operate responsibly through sustainable use of resources and investing in various environmental goals. Lastly, we are committed to nurturing lasting and enduring relationships with our stakeholders, built on trust and concern for their individual and collective well-being through meaningful engagements. Vedanta’slarge,diversifiedassetportfolio,withanattractivecost position in many of its core businesses, enables us to deliver strong margins and free cash flows through the commodity cycle. Vedanta continued its strong growth momentum and witnessed steady volume performance across all businesses, with aluminium and zinc delivering record performance, despite the challenging environment, in terms of geo-politics, rising energy prices and uncertainty in commodities market. At Vedanta, FY 2023 was a year of remarkable progress on the ESG front led by our ‘Transforming for Good’ purpose. We positively touched more than 44 million lives through our CSR progammes, improved diversity, inclusion and governance practices and took major strides in the areas of carbon neutrality, water positivity and a greener business model. In line with the past trends, we are proud to declare that we have contributed `73,486 crores to the public exchequer of the various countries where we operate in FY 2023. The total contribution to exchequer is the result of value addition by various business segments across their respective value chain and multiple hierarchies of business cycle. 48% Government Royalty andProfitPetroleum 17% Taxes on Income and Capital 35% Other taxes borne Total Contribution `73,486 crore 53% Taxes Borne 34% Indirect Contribution 13% Dividend paid to Govt. 69% Indirect Taxes 22% Withholding Taxes 9% Other indirect contributions BUSINESS SPREAD OF CONTRIBUTION TO EXCHEQUER ALUMINIUM `8,296 crore COPPER `5,375 crore STEEL `2,488 crore ZINC `25,201 crore Oil & Gas `23,328 crore IRON ORE `1,766 crore Total Contribution `73,486 crore OTHERS `7,032 crore Your Company publishes Tax Transparency Report which provides an overview of the tax strategy, governance and tax contributions made by the Company. Such report is a testimony to the conglomerate’s endeavor towards absolute transparencyindisclosureofprofitsmadeandtaxespaid. The report is available on the website at www.vedantalimited.com. 179 DIRECTORS’ REPORT SUSTAINABILITY AND SOCIAL RESPONSIBILITY 2. ENVIRONMENTAL, SOCIAL AND GOVERNANCE APPROACH Transforming for Good Introduction: Thecurrentfiscalyearissignificantaswefocusonputting in place an Environmental, Social, and Governance (“ESG”) framework to drive our ESG agenda for the long term. Our efforts are guided by senior management and supported by the creation of 14 Communities of Practice (“CoP”) to driveandachieveresultsinspecificdirections.Our3Pillars and 9 aims set the path for us to become a leader in the ESG space. We have started building momentum towards achieving our commitments to our stakeholders, and our work plan for attaining our ESG goals is being put in place. ESG Targets: We are building our focus to achieve our stated 2030 ESG targets, which will improve our business sustainability and make us agile, future-ready, and an employer of choice. Our 14 CoPs are working towards achieving these goals, and we have made considerable efforts to align our future business trajectory with our ESG goals. Given the long-term nature of our targets, the roadmaps are constantly evolving, and our consistent and focussed approach towards these goals will help us to get near our targets. Green Shoots/Major Achievements: Considerable efforts are being made in every ESG aim that weareworkingon,andsomesignificantachievementsin FY2023giveconfidencetotheCompanythatweareonthe right track. These include: 1. Transforming Communities: • Our flagship Nand Ghar programme has reached 4,533 Nand Ghars, impacting 2.9 million women and children through our initiative. • Our Corporate Social Responsibility programmes that focus on improving the skill sets of communities are helping around 4,00,000 families improve their earning potentialandachievefinancialindependence. 2. Transforming Planet: • • PDAs are in place for 838 MW of Renewable Energy Round The Clock power for our operations, with the potential to abate ~7 MMtCO2e per year. Four of our operations (Hindustan Zinc Limited, Cairn India, Iron Ore Business, and Black Mountain Mine) are now water positive. 3. Transforming Workplace: • • Our total women employee base has improved to 14% from our FY 2021 baseline of11%whichshowssignificantprogressin making our workforce more diverse. Our women representation in decision- making roles is expected to improve from 12 to 16% in FY 2023, which means more leadership roles for women employees to lead businesses. ESG Ratings: Our jumpstart in ESG performance has been endorsed and acknowledged by ESG rating providers. We have improved our ESG rating in renowned ESG rating providers like Dow Jones Sustainability Index ("DJSI"), Sustainalytics, MSCI, CDP (Water) while retaining our CDP rating in climate performance. This is the result of putting organisation-wide efforts on changing the on- ground situation for the better, which is getting reflected in ESG ratings. MSCI • Nosignificantvotes against directors Incentivisation of sustainability Performance in executive pay policies • B B B C C Sustainalytics • • Improvement from severe to high risk Improved management of ESG risks cited as reason for better rating 7 4 4 4 . 6 9 3 0 3 DJSI • Part of Sustainability World Index • Only Indian company to be added in FY 2022 • Also, part of ‘Emerging Markets Index’ 7 9 8 9 9 9 8 9 8 9 9 8 6 8 CDP • B-rating for CDP Climate and CDP Water • CDP Water disclosed for 1st time A A B B B B C FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2020 FY 2021 FY 2022 FY 2019 FY 2020 FY 2021 FY 2022 VEDL VEDL HZL VEDL HZL VAL VEDL HZL VEDL Historical Data HZL Historical Data VEDL High Risk category HZL Medium Risk category #3 | M&M Index HZL VEDL #6 | M&M Index VAL #2 I AL Sector HZL rated A for CDP climate and CDP water 180 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 Challenges: Safety Performance While there are green shoots visible in almost all the ESG Key Performance Indicators, our safety performance remains a cause of concern. Unfortunately, we had 13 fatalities in FY 2023, which belied our efforts to improve our safety scores. To overcome this issue, we are implementing a Critical Risk Management (“CRM”) framework at all our locations, which ensures working on top reasons/root causes for fatality elimination. CRM is a proven way to improve fatality reduction and has been implemented by global metals and mining majors. We are trying to fast-track the progress of this project as much as possible. Growth Projects Our growth projects planned from FY 2024 to FY 2030 period, while improving our portfolio of energy transition metals, will add more pressure on our environmental performance (emissions, water, waste, etc.). This growth project pipeline can affect our 2030 targets for environment, but we are devising the strategy for ensuring that our growth trajectory is as green as possible. To achieve our ESG aims, we have created a strong pipeline of more than 1,100 projects in all 3 major areas of transformation, which will take us in the required direction. With the help of technology and focussed approach, we are on right track to achieve leadership position in ESG space. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT Since FY 2022, our Business Responsibility and Sustainability Report (“BRSR”) disclosures have been aligned with the regulations issued by the Securities and Exchange Board of India (“SEBI”), which mandate compulsory disclosures for top 1,000 companies by market capitalisation in India. As per SEBI directives on Integrated Reporting (“IR"), the Company follows 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 continues to provide the requisite mapping of principles between the Integrated Report, the GRI and the Business Responsibility Report (“BRR") which has now been advanced to the BRSR as per new SEBI requirements. Hence, a BRSR containing basic information about the Company’s sustainability practices is being published as a part of the Integrated Report this year. These disclosures will help Government to focus on major areas of policy actions and for improved compliance of ESG issues at large to align with Government’s own goals for business sustainability. As part of our commitment to upholding ESG priorities, the Board of Directors at Vedanta have taken steps to strengthen our focus on ESG matters. The Board-level ESG Committee meets every six months to oversee and guide the business on its ESG strategy. The Committee is headed by an Independent Director. Additionally, the Board is supported by ESG advisors with extensive expertise in areas such as communities and social performance, requiring collective efforts on various fronts. Details of the composition of the Committee, its terms and reference and information on ESG advisors, and the meetings held during FY 2023 are elucidated in the Corporate Governance Report. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS A separate detailed report on company’s Sustainability Development also forms part of the Annual Reporting suite. 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 bottomlineprinciples-People,PlanetandProfit. Detailed information about the Company’s sustainability performance can be found in our annual Sustainability Report which can be accessed at www.vedantalimited.com. ENERGY CONSERVATION, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND 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: (` in crore) Particulars Standalone Consolidated Expenditure in foreign currency Earnings in foreign currency CIF Value of Imports FY 2023 FY 2022 FY 2023 FY 2022 9,324 7,266 2,574 5,172 31,035 33,744 49,439 47,991 26,437 22,918 34,137 29,520 CORPORATE SOCIAL RESPONSIBILITY ("CSR") Vedanta has committed itself towards reaching out and giving back to its communities. Creating an ecosystem of development through planned interventions, Vedanta is ensuring that its vision for the development of the nation reaches the farthest geographies. With a consistent focus on bringing a transformational change in its communities, Vedanta is implementing sustainable and inclusive growth and has reached out to 4,39,14,230 total beneficiaries across 1,268 villages in FY 2023. Spearheading Women and Child Development through its flagship project ‘Nand Ghar’, a total of 4,533 centres across 14 states in India have been developed that cater to more than 3 lakh children and women of rural India. Nand Ghars are transforming the landscape of rural India with best-in-class infrastructure and facilities. Project Nand Ghar is emerging as synonymous to nutrition. This year, with Vedanta Delhi Half Marathon and Vedanta Pink City Half Marathon, more than 50,000 people ran for the cause “Zero Hunger”. These marathons reached out to international and domestic runners and with the zeal and enthusiasm of the participants, Vedanta was able to commit 2 million meals for a healthy and nourished India. Catering to the needs of building a resilient future generation, Nand Ghar also launched a multi-millet nutria bar for children’s holistic nutrition as part of its preparations for its objective for a healthy India. Vedanta has always found its purpose in giving back multifold to its communities and ensuring no being is left behind. Broadening its reach into the realm of welfare, 181 DIRECTORS’ REPORT Vedantahaslaunchedafirstofitskind,Animal Welfare Project, The Animal Care Organisation ("TACO"). An initiative focussed on improving animal health and welfare, TACO is currently operating in Haryana and Rajasthan. Its goal is to offer top-notch amenities, veterinary care, training, and animal shelters to protect and care for animals. Additionally, TACO has provided aid to Ranthambore National Park to help preserve the diverse wildlife found within the sanctuary. An overview of CSR initiatives is provided in earlier section of this Annual Report and report on CSR activities for FY 2023 as per Section 135 of the Act and rules made thereunder forms part of this Directors’ Report and is annexed hereto as ‘Annexure B’. Further, the Company has in place a CSR Policy approved by the Board of Directors and the same can be accessed at www.vedantalimited.com. Furthermore, to accelerate social growth and development, withawell-definedroadmapandacommitmenttoinvest `5,000 crore, Anil Agarwal Foundation, the philanthropic arm of Vedanta aims to take the mission of creating strong and resilient communities in India ahead. In FY 2023, Vedanta has won several awards for its community development initiatives like National CSR Award, Platts Global Metal Awards for Corporate Social Responsibility, ICC Social Impact Award 2022, FICCI CSR Award 2022, 11th India CSR Award 2022, India CSR Award etc. Impact at a Glance Excellence in Corporate Social Responsibility An essential aspect of most of the programs is adopting a community engagement strategy that begins from the grassroots level. This approach fosters community ownership andlong-termsustainabilitywithefficientlyimplemented programs working for the betterment of the communities. Understanding and prioritising the needs of the communities, several interventions with focus on women and child development, healthcare, sustainable livelihood, sports and culture and community development have been designed and implemented across more than 1,000 villages. Nand Ghar 3,16,000 Women and Children Beneficiaries Sports and Culture 3,55,525Beneficiaries 13 Initiatives Health 26,96,689 Beneficiaries 33 Initiatives Women Empowerment 44,503Beneficiaries 7 Initiatives Drinking Water and Sanitation 6,25,528 Beneficiaries 17 Initiatives Children Wellbeing and Education 3,87,25,079 Beneficiaries 28 Initiatives Livelihood 94,577 Beneficiaries 11 Initiatives Skill Development 5,400 Beneficiaries 10 Initiatives Disaster Relief 50 Beneficiaries Community Infrastructure/ Mobilisation 6,28,511 Beneficiaries 15 Initiatives Environment 4,19,670 Beneficiaries 3 Initiatives Impact Assessment KPMG carried out a scoring exercise for each Business Unit wherein their relative performance per project was ascertained and presented basis the OECD-DAC Framework. It comprises a set of criteria that aids in the systemic and objective assessment of ongoing or completed development programs, their design, and implementation, using six evaluation criteria –Relevance,Coherence,Effectiveness,Efficiency,ImpactandSustainability. The exercise of carrying out the studies were intended to provide an understanding of what were the best practices emerging from the study and what can be done next as part of the way forward. The following process was undertaken to conduct the study Adopting different study approaches based on existing community sentiment: 1. Research approach CSR focussed 2. approach Strengthening existing impact map with SDG indicators Mixed methods approach to data collection - surveys, interviews and FGDs, etc. Recommendations for exiting/consolidating current programs Scoring each project Business Unit wise Data analysis and benchmarking with national and state averages Strategic inputs for further strengthening of CSR programs with a focus on: • Impact • Perception of stakeholders • Emerging priority areas • Business drivers 182 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The following questions are asked through the study What impact have the CSR activities been able to create (intended and unintended)? How do local communities and other stakeholders perceive Vedanta’s CSR activities vis-à-vis its business operations? How are the CSR programs helping strengthen the social licence to operate for the respective Business Units? What are the current needs of the community and baseline values for the indicators Vedanta wants to impact? How are different projects/BUs/thematic areas performing with respect to each other and what course of corrective actions are needed? Thematic Area Indicators Education Sustainable Livelihoods Skilling Health, Water and Sanitation Community Assets Creation Women Empowerment Ensure all achieve literacy Improvement in passing percentage Employed community members Association with Farmer Producer Organisations Placement rate of trained youth Trained population that could retain their job beyond 18 months Accessing public health facilities Population stating improvement in quality of healthcare Access to clean drinking water Presence of drinking water source within the house or its periphery Women associated with Self Help Groups Womenthatalwaysmaketheirowndecisionsoneducation,finances,family planning etc. (%) 91 62 79 23 91 39 85 39 55 56 48 52 Primary Data Perception of CSR Management • 47 CSR Management Interviews were conducted across 8 Business Units of the Company • 95% respondents feel that Vedanta’s focus on business drivers through CSR over the last three years has improved community relations 75% respondents feel that CSR generates value and success for both the Company and society 25% respondents feel that CSR is an integral part of strategy that drives the business forward through the generation of trust Only 6% respondents feel that CSR is a compliance requirement and is separate from the rest of the business Secondary Data A digital listing and topic analysis was performed on ESG activities of Vedanta Resources Limited (“VRL") and its subsidiaries across the World Wide Web to analyze the brand mentions and other digital media Key Performance Indicators ("KPIs") surrounding them. This was done to understand the perception that netizens have around the brand’s CSR activities and to identify opportunities for Vedanta that can be carried out as part of CSR. Beneficiaries and Community Local Stakeholders Districts' Stakeholders Sentiment Analysis 8% 15% 4% 5% 4% 26% 21% 36% 77% 91% 70% 43% Exceeding expectations Satisfied More support required Positive Neutral Negative 183 DIRECTORS’ REPORT 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 As per the revised CSR Rules issued by Ministry of Corporate Affairs ("MCA") in January 2021, every company having an average CSR obligation of ten crore rupees or more in the threeimmediatelyprecedingfinancialyears,shallundertake impact assessment, through an independent agency, for their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study. andnurturesinnovation,creativityanddiversity.We ensure alignment of business goals and individual goals to enable our employees to grow on personal as well as professional front. It is through the passion and continued dedication of our people that our Company continues to succeed and we have alwaysunequivocallyandfirmlybelievedinrewardingour people for their consistent efforts through our best-in-class and globally benchmarked people practices and reward programs. We have been recognised for our people practices by coveted External Award: In line with the above requirement, a brief outline of the projects for which Impact Assessment was carried out and the executive summary of the Impact Assessment Reports is annexed as 'Annexure B-1' to the Annual Report on CSR Activities for FY 2023 forming part of this Annual Report. The complete Impact Assessment Reports of the applicable projects can be accessed at the Web-link provided in the said annexure. 3. HUMAN RESOURCES MANAGEMENT PEOPLE AND CULTURE Our 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, a safe and healthy workenvironment.Ourcultureexemplifiesourcorevalues • • • • • • • 100+ External Recognitions received in last 7 years VedantaGroupidentifiedasGreat Place to Work second time in a row along with a special mention for being India’s Best Employers Among Nation-Builders 2022 Kincentric Best Employer Award 2022 for Commitment to Diversity and Inclusion Featured in Top 10 Happiest Workplaces 2022 by Business World along with other prominent brands Arogya World Healthiest Workplace Award - Recognised at Gold Level for Vedanta Group for best practices in Health and Well-Being 2022 Recognised with Economic Times - Company with Great Managers year-on-year Recognisedfor‘SignificantAchievementtoHR Excellence’ by CII People Practices Best Talents to change Fabric of the Organisation -RightRoles,bestbenefits,careerpathandanchoringdiverse talent: gender, skill and geography 1,200+ Freshers out of which 150+ from premier campuses, 38% gender diversity, 12% minority and 30% Rank holders Vedanta Leadership Development Program (“VLDP") hiring from top IITs and IIMs, XLRI, NITIE Hiring at mid and entry level positions from top global campuses from US, UK, Australia, Asia etc. Anchoring and mentorship by senior leaders, tracked digitally via V-Excel Platform for the campus hires Family Business Hiring is a unique initiative where the objective is to get professionals who bring entrepreneurial skillset into the system Global Talent and Subject Matter Experts hired with niche skillset to give us the competitive advantage. We have talents from around 30 different nationalities Diversity Equity and Inclusion ("DEI") - Vedanta has already embarked with the journey to build an inclusive and empowered workforce. To create organisational capability for future, our BUs have differentiated themselves through continuous efforts in creating positive transformation that is based on meritocracy without any scope of discrimination on the ground of age, sex, colour, disability, marital status, nationality, caste or religion. Ensuring an inclusive environment is a key part of our belief that drives equality and innovation. All our DEI principles focus on: Enabling and empowering diversity Promoting equality Inclusive policies Inclusion of LGBTQ as a part of the workforce Training and Sensitisation of workforce - Gender intelligence workshop Project Pancchi, Sapnon ki Udaan was launched with Vedanta’s focus on giving back to the community and Nation - Desh Ki Zarooraton ke Liye. It is aimed at the upliftment of the society by providing opportunity to groom 1,000 girls from the marginalised community and make them a part of our Vedanta Family. This program will focus on upskilling the ‘Pancchis’ to enable them to work in business shop floors and other functions. This will strengthen themfromallaspects-financially,emotionallyandsociallyensuringtheirsafetyandsecurity 184 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Leadership Development and Succession Planning - In line with our core philosophy of “Leadership from within”, we run some of the industry’s most sought after leadership development programs. We identify high quality talent with focus on young talent to make Vedanta truly ‘future-ready’ Robust Second-in-line Leadership: TheEmergingLeadersProgramwasagroup-widetalentidentificationinitiative, to identify and place Hi-Po talent in Deputy CXO Roles across businesses, SBUs and functions. 130 leaders were elevetatedintokeycriticalroleswhileshadowingtheCXO.Successorsidentifiedthrougharigorousstructured process of assessments and feedback Executive Education and C-Suite Coaching: 100+leadersidentifiedforExecutiveEducationprogramsfromPremier B-Schools like IIM B, ISB and INSEAD to enhance leadership and managerial acumen. All senior CXOs mapped with Internationally Acclaimed Executive Coaches Enabling Women Leadership: V-Lead, our Flagship Women Leadership Development Program to create a strong pipeline of women CXOs and include them in decision-making bodies 120 high-potential women leaders covered 25 Vedanta CXOs anchoring V-Lead Leaders 80% of our V-Lead Leaders elevated to Leadership Roles in last two years through growth workshops, ACT-UP etc. 40% of our V-Lead Leaders recognised across Vedanta with the prestigious Chairman Awards Complete Talent Coverage: Employees across all functions, grades, experience/seniority levels are included in our Talent Development Initiatives which ensures fast-tracked career progression for all employees at the right time This year, Multiple ACT-UP programs were held focussed on critical functions such as Projects and Mining. Unique initiatives such as Non-HR to HR, V-Excel, V-Reach Tech, V-Lead were executed coveringaspecificpool of employees which included new campus hires, Cross-Functional leaders (Mining, Projects, Commercial and Marketing etc.) and Women Leaders. Gurukul, a digitally-driven feedback-centric Learning and Development initiative which gives internal leaders and external experts a platform to share their expertise, has grown and now boasts of a 24*7 digital repository of all knowledge sessions along with top emerging ideas A detailed update on People and 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 ("ESOS") 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 and gives the control of outcome to employees. On 28 October 2022, the Nomination & Remuneration Committee (“NRC") approved the grant of Employee Stock Options 2022 to Vedanta employees covering 43% of eligiblepopulation.Forthefirsttime,allthecampushires were provided with stock options, to enable young talent to grow and contribute towards overall business performance. Our Company had launched a stocks-based incentive scheme viz., ‘Vedanta Limited Employee Stock Option Scheme 2016’. 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 12 December 2016. 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 2022 plan is driven by Business and Individual performance. The scheme is robust with an objective to place greater prominence on superior individual performance thereby recognising high performing talent while keeping them accountable for business delivery. It has been ensured thattheschemefulfilsitsmotiveofwealthcreationfor employeestofulfilltheirfinancialgoalsandatthesame time gives them the sense of ownership. 185 DIRECTORS’ REPORT Vesting of the awarded grants are completely based on performance, linked to individual & business parameters. Since this is a long-term incentive, continued employment with the company from the grant till vesting is a construed condition to be eligible for vesting. Vedanta follows performance-based cliff vesting with vesting on 3rd anniversary of grant. To give prime importance to sustainable business delivery, ESG and Carbon footprint are part of 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. No employee has been issued stock options during the year, equal to or exceeding 1% of the issued capital of the Company at the time of grant. During the year, the acquisition by the Trust does not exceed 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 BenefitsandSweatEquity)Regulations,2021("Employee Benefits and Sweat Equity Regulations"), disclosure with respect to the ESOS Scheme of the Company as on 31 March 2023 is available on the website of the Company at www.vedantalimited.com. TheCompanyconfirmsthattheSchemecomplieswith theEmployeeBenefitsandSweatEquityRegulationsand there have been no material changes to the plan during the financialyear. AcertificatefromM/sVinodKothari&Company,Practicing Company Secretaries, Secretarial 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 the same will also be available for inspection through electronic mode. MANAGERIAL REMUNERATION, EMPLOYEE INFORMATION AND RELATED DISCLOSURES The remuneration paid to Directors, Key Managerial Personnel (“KMP"), and Senior Management Personnel (“SMP") during FY 2023 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 are 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 shall be furnished upon such request. COMPENSATION GOVERNANCE PRACTICES AT VEDANTA Our Compensation Philosophy: People are our greatest asset and we are committed to providing all our employees, a safe and healthy work environment. Linkage of Reward Priorities to Business Priorities Ensuring a Uniform Experience Across Group. Built on the core objective of driving ‘Pay for Performance’ culture, the mix of components of the Executive Compensation aims to drive the short as well as long-term interests of the Company and its shareholders through strong emphasis onoperational/financialfundamentals,sociallicenceto operate, business sustainability and strategic objectives of resource and reserve creation along with wealth creation for stakeholders. Business Priorities Rewards Priorities Zero Harm, Zero Waste and Zero Discharge Build a Performance Driven Culture Reflect and Enable Long-Term Business Growth and Vision I-RECITE at Heart 186 Zero Undesirable Talent Loss Relentless Focus on Productivity and Performance Above Market Pay Positioning Compelling Pay Mix Basis Position in the Firm It Pays to Perform Individualised Employee Value Proposition High Differentiation at 1.8 - 2.2X Holistic Employee Growth VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Executive Committee Members Maximum On-Target Minimum 31 34 38 42 31 24 100 Fixed Pay Annual Bonus LTIP Ratio of Fixed Pay vs Variable Pay in Senior Executives' Remuneration Linkage to ESG/Safety Scorecard-based performance management approach: Greater emphasis is laid on setting of objective KPIs along with the continuous performance dialogue Culture of safety and sustainability to achieve our ultimate vision of “Zero Harm”, “Zero Waste” and “Zero Discharge”: The safety and sustainability scorecards under the Vedanta Sustainability Assurance Program form an integral component. Progressively, impact of carbon footprint has been added as a performance parameter ESG Component in Annual Performance Bonus: Based onabalancedscorecardoffinancial,operational, sustainability & ESG, people and strategic metrics, appropriate weightage is allocated to efforts towards business and individual performance. Business performance parameters include Volume, CoP, FCF, EBITDA, Reserves. Any fatality in the group impacts the variable of the employees. Long Term Incentive Plan ("LTIP"): The vesting is attributed to sustained business and individual performance against the pre-determined performance criterion which also includes ESG and Carbon Footprint Employee Benefits Policy: Road-based transportation is responsible for ~12% of global GHG emissions. At Vedanta, we have committed to do our bit to eliminate these emissions. As an organisation, we want to ensure that 100% of our light motor vehicles are decarbonised by 2030. Towards the above goals, a radical change to our Company Car Policy was announced involving Electric Vehicle ("EV") Kicker to incentivise employees to opt for EV. Additionally, a new policy on EV Incentive for the purchase of electric two-wheelerswaslaunchedtobenefitallthe employees across the organisation Governance: 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. All parameters are reviewed each year by the NRC. Timely risk assessment of compensation practices is done in addition to review of all components of compensation for consistency with stated compensation philosophy partners as well as timely communication to ensure transparency to all employees Vedanta has been built on a strong foundation of governance where the Board, Key Executives and ComplianceOfficerhavebeenvigilantandcommitted 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 NRC is in compliance with the Listing Regulations and majority of the members are Independent Directors. The Chairman of the Committee is an Independent Director The members of NRC together bring out the rich expertise, diverse perspectives and independence in decision-making on all matters of remuneration for Directors, KMP and SMP. The Independent Directors are actively engaged throughout the year as members of NRC in various people matters even beyond remuneration A Board charter appoints and sets 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 Timely risk assessment of compensation practices is carried in addition to review of all the components of compensation for consistency with stated compensation philosophy: Financial analysis and 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 Upperlimitsandcapsdefinedonincentive 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 a part of employee contract such as: No provision of Severance Pay in Employment contracts of Whole-Time Directors ("WTD"), KMP and SMP No Tax Gross up done for executives except for expatriates as a part of tax equalisation No provision of unearned incentives/unvested Stock or Cash Options Voice of the Employee: Involvement of bright minds from diverse functions and best in market external AnybenefitprovidedtoKeyExecutives(includingbut not limited to CEO/CFO/CHRO) are available to all the 187 DIRECTORS’ REPORT employeesoftheCompanyasperthedefinedCompany policy. We continue to corroborate the Internal Pay Equity Principles, sustained attention to equity grant practices and maintainchecksandbalancestoconfirmthatthepractices are legally and ethically compliant with international, national and state/regional laws. PREVENTION OF SEXUAL HARASSMENT AT WORKPLACE ("POSH") 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 made 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, seventeen (17) complaints were received and resolved. Your Company has constituted Internal Complaints Committee ("ICC") for various business divisionsandoffices,aspertherequirementsofthe Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. 4. 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. 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 The Audit & Risk Management Committee of the Board aids the Board in the risk management process byidentificationandassessmentofanychangesinrisk exposure, review of risk control measures and by approval of remedial actions, where appropriate. The said Board-level Committee is in turn, supported by the Internal Group Risk Executive Management Committee ("GRMC") which helps the said Board-level Audit & Risk Management Committee in evaluating the design and operating effectiveness of the risk mitigation program and the control systems. Majorrisksidentifiedbybusinessesandfunctionsare systematically addressed through mitigating actions. Risk officershavealsobeenformallynominatedatoperating businesses, as well as at the Group level, to develop the risk management culture within the businesses. The Risk Management Policy of the Company revised in 2019 covers cybersecurity as well. Group Risk Management Framework Extern al F i n a n cial S tr a t e g i c p erational O 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 With effect from 06 June 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 has a structured framework for cybersecurity. The Audit & Risk Management Committee ensures the overall responsibility for oversight of cybersecurity frameworks. Each of the Business Units has a Chief InformationOfficer("CIO") with suitable experience in Information/Cybersecurity. Every year, cybersecurity review is carried out by IT experts (belonging to IT practices of Big- 4firms).VulnerabilityAssessmentandPenetrationTesting 188 EVALUATEIDENTIFYMITIGATEMONITORVEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ("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 cybersecurity 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 Companyforensuringtheorderlyandefficientconduct of its business, which includes adherence to policies, safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting recordsandtimelypreparationofreliablefinancial information. In line with the 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,areidentifiedasaresultofthereviews,newprocedures 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 andmarketing,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 the 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 ofleadinginternationalaccountancyfirms. The Company’s system of internal audit includes covering monthlyphysicalverificationofinventory,amonthlyreview 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 the internal auditors. The internal auditors make periodic presentations INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS on audit observations, including the status of follow-up to the Audit & Risk Management Committee. The Company’s Internal Financial Control ("IFC") framework is commensurate with the size, nature and complexity of the Company’s operations and is based on the criteria aligned to the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") framework and requirement of the Act. Through the IFC framework in place, the Audit & Risk Management Committee and the Board gains assurance from the management on the adequacy and effectiveness of Internal Controls over Financial Reporting ("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, evaluating, and managing the material business risks is designed to manage, rather than eliminate risk. Besides, it is 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 ICOFR compliance by the Statutory Auditors, the Chief Executive Officer(“CEO")andChiefFinancialOfficer(“CFO") recommend to the Board continued strong internal financial controls. TherehavebeennosignificantchangesintheCompany’s internalfinancialcontrolsduringtheyearthathave materially affected or are reasonably likely to materially affectitsinternalfinancialcontrols,otherthanas mentioned in the “Audit Report and Auditors” section of 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. 189 DIRECTORS’ REPORT “Internal Financial Control are policies and procedures adopted by the Company for ensuringtheorderlyandefficientconductofitsbusiness,includingadherenceto 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." Building Blocks Policies and procedures Safeguarding of assets • Policies and procedures exist for effective conduct of • Ownership and rights to assets are maintained business, delegation of authority is formally documented andimplemented,organisationstructureisdefined,and segregation of duties and responsibilities is maintained. with the Company; • The Company has implemented processes for safeguarding of assets. Prevention and detection of frauds and errors • Proactive anti-fraud controls/fraud risk management framework has been implemented. Timely preparation of reliable financial information • Financial items are properly described, sorted andclassified; • Financial information is provided as per the timelines definedbytherelevantstakeholders. Accuracy and completeness of the accounting records • Alltransactionsoccurredduringaspecific period have been recorded; • Asset, liability, revenue and expense components are recorded appropriately. 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 – MAS, who is independent of operating management and the businesses. In line with global practices, dedicated email 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 yearunderreview,asspecifiedunderRegulation34read with Schedule V of Listing Regulations is presented in a separate section, forming part of this Annual Report. 190 5. INNOVATION, DIGITALISATION AND TECHNOLOGY INNOVATION, DIGITALISATION AND TECHNOLOGY At Vedanta, we have a tech-forward strategy which aims to create a One-Vedanta experience while boosting operational effectiveness and productivity, fully embracing digitalisation, and fostering a culture of digital inclusion among employees while creating a start-up ecosystem. Vedanta’sdigital-firstapproachhasakeenfocuson advanced technologies which has resulted in improved processes, volume upliftment and easy access to information for effective decision-making. In FY 2023, through digital initiatives, we are looking to achieve tangible value in the form of 1.5x growth in EBITDA impact and gains such as enhanced safety and security, sustainability, better governance, and improved employee productivity. At the Group level, Project Pratham was launched as a flagship program to facilitate the rapid digital transformation across our businesses. Each of Vedanta's businesses has embarked on their own transformational journey towards digitalisation and innovation. In our mining & smelting complexes, we are at the forefront in implementing smart manufacturing by leveraging technologies under the Industry 4.0 umbrella. Initiativesthatwereimplementedincurrentfiscalyear include Integrated Petro-Technical Cloud at Cairn Oil & Gas, Smoke Hours Drilling (Tele-remote and Automation) at Hindustan Zinc Limited, Coal Blend Optimisation at Sesa VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Goa, ‘V-Aikyam’ as our new digital Human Resource and Performance Management System to enhance employee experience and ‘V-Unified’ to have a complete standardised and uniform Health, Safety and Environment ("HSE") observation reporting platform across the Group. In Aluminium business, the R&D vertical has been working diligently to deliver innovative solutions in several key areas, including new product development, wastetowealth,beneficiationofBauxiteandprocess intensification. Building upon the success of the previous edition, we introduced the second edition of Vedanta Spark, or ‘Vedanta Spark 2.0’ to collaborate with creative start-ups and take use of their technological capabilities and agility. In this edition, Vedanta carried out more than 30 unique start-up engagements catering to 70+ pilot projects to solve business challengesacrossVedanta'sdiversifiedbusiness.Moreover, Vedanta is establishing its Corporate Venture Capital to support these budding start-ups, to mentor them, and to help them unlock their true potential and value. To encourage innovation within the Company, the ‘V-Ideate’ (Innovation and Technology theme) programme was launched. Employees and partners submitted 100+ business ideas as part of this effort which aims to reward grassroots inventions and bring about a digital cultural shift. ‘Spotlight’ and ‘Think Digital’ initiatives sensitised the workforce towards disruptive innovations and technology implementation happening within and outside the organisation. We are extremely focussed in bringing about a culture change into empowering users to take advantage of advances in technology and even in day-to-day activities, to supply tomorrow's metals and energy in an effective and sustainable way. Vedanta will keep on expanding on its accomplishments in the mining and metals as well as the oil &gassectorstorealisethetruepotentialofthedigital age. POLICY & ADVOCACY Vedanta’s initiatives are essentially premised on its ‘Nation- First’ philosophy. Vedanta’s advocacy aims to create an enablingregulatoryframeworktofulfiltheresourceneeds of the country, be it those of green energy, electric vehicles, or infrastructure. This is executed through participation in stakeholder consultations on global value chains, ease ofdoingbusiness,financialreformsandothermatters related to responsible business practices. Because of our frequent collaborations with academia, think-tanks, industry associations and media organisations, our initiatives are strongly backed by research and holistic stakeholder feedback. India’s growth story requires an abundance of minerals, metals and fuel, which Vedanta aims to support. RESEARCH AND DEVELOPMENT (R&D) R&D is a critical component of Vedanta’s growth strategy. It enables us to stay competitive by developing innovative products and services that meet the changing needs ofcustomers.Vedantainvestsasignificantamountof resources into R&D to improve the quality of its products and services,reducecosts,andincreaseefficiency.R&Dhelps the Company to differentiate itself from competitors and maintain its market position. • • • • • In the waste to wealth segment, FY 2023 was a year of successful transformation of collaborative projects from laboratory developed processes to the stage of setting up a pilot plant. Notable among these were recovery of high purity graphite >99% and cryolite from the wastes like Spent Pot Liner and Shot Blast Dust. With high purity graphite, Applications Development programme has been initiated for development of Anode of Lithium Battery, Electrostatic Dissipative coating and Conductive ink. Pilot Plants from these innovative processes will not only help to reduce environmental impact but also create new revenue streams for our business. Synthesis of high purity AlF3 along with crystals of pure silica gel from dross slag waste is one of anothersignificantachievementdoneinthelab scale and is now planned for a Pilot Plant and subsequent commercialisation. Such projects of extracting the valuables from waste will set perfect examples of Circular Economy. Aligning with the net zero carbon goal, innovative research initiatives are being taken to reduce net carbon consumption. Specialised coating on Carbon Anodes will have a potential to reduce Net Carbon Consumption by 10 kg per million tonnes of Aluminium, this will translate to reduction in 0.06 million tonnes of carbon dioxide. It is worth mentioning that we are carrying out a high-end Modelling and Simulation exercise of Carbon anode to reduce the voltage drop to the extent of 2 mV in Pot Line by an improved green manufacturing process. In the category of New Product, two new alloys have been developed and prototypes have been demonstrated. High strength 6XXX series alloy with 20% higher strength has been developed by new alloy design including homogenisation cycle, extrusion process and heat treatment cycle optimisation. This will lead to increase the wind load bearing capacity of doors and windows assembly. Lead and Tin free highly machinable 6XXX series alloy has been developed for automotive segments by new alloy designing and process optimisation. Machining properties like higher cutting speed, depth of cut and feed rate can be achieved with lower cutting force and superiorsurfacefinishforthisalloy. • In the beneficiation of Bauxite, we have developed a process to improve the Alumina to iron oxide ratio which will result into reduced generation 191 DIRECTORS’ REPORT ofRedMudbyatleast20%.Beneficiationof Bauxite to reduce reactive Silica by almost 1% has shown promising results for plant level commercialisation. Utilisation of Red Mud has been a major focus area where we have already initiated and entered into a big collaboration with other industrial players and CSIR laboratories and JNARDDC, Nagpur for a technology development for holistic utilisation of red mud for extraction of metallic values and residue utilisation. We have also developed recipe to utilise Red Mud for partial substitution of sand, Road Sub Layer and Red Mud based Geo Polymer Concrete. Hindustan Zinc Limited has stayed focussed on business outcomes, and research activities have been initiated in multiple areas of interest, including additional process monitoring, digital data analysis and process simulation. We remain focussed on aspects related to the changing characteristics of the ore, while looking into improving our mineral processing and smelting processes for increased recoveryandefficiency.Collaborationwithworld- class universities and institutes, technology providers, and start-ups is an essential part of our innovation process.Significantcommercialimplementations of this year include process for increasing Ag metal recovery during production of lead concentrates. Successful plant implementation has been achieved for enhanced minor metal recovery from smelter residues. In the coming year, we are aiming to develop process control strategies based on the new process parameter measurements and data analysis. Specific R&D focussed projects include: Implemented the process to improve silver recovery at Zawar by utilising silver promoter reagent Deployed non-hazardous flotation/depression reagent for graphite across sites Alternative low-capex process for jarosite preparation for its use in cement industry, customer test ongoing Sodium-based salt production from Effluent stream and its use in hydro process IncreasethecurrentefficiencyofZn electrowinning process and improve quality of HG grade Zinc in the manually operated zinc cell house Geo-metallurgical studies have provided advance insight of ore performance to guide flotation recipe for plant problem-solving and to support mines expansion plans Optimise the use of strontium-based reagent and explore the alternate reagent to suppress Pb impurities in zinc cell house • • • • • • • 192 At Copper business, the unit is engaged into innovative Collaborative Research programme ofCouncilofScientificandIndustrialResearch, GovernmentofIndiaasIndustrialBeneficiarywherein CO2 can be preferentially adsorbed and converted into Carbon nanostructures or even high vale methanol or Formic Acid. • • • • • R&D activities at Copper business involve debottlenecking, backward integration and process improvements for quality, cost optimisation and recycling. In the journey towards 'Green Copper', we are executing a renewable energy supply contract for the entire Silvassa unit's electricity requirement, with an estimated reduction of the carbon footprint by approximately 58%. ArtificialIntelligenceandMachineLearning based smart fuel optimisation project under the digitalisation initiative in our furnaces has been implemented and is estimated to reduce 3,554 tCO2 eq./year. Under the sustainable packaging initiative, a 100% recyclable packaging solution has been introduced for the copper rod. This packaging provides protection even under adverse climate conditions and has led to customer delight. With the view to recover minor metals and ensure additional revenue, some crucial in-house R&D has been performed and a new process to recover Precious Metals from anode Slime has been successfully developed. In addition to this, tellurium has also been recovered. Along with it, Selenium recovery trials are in pipeline. In Iron & Steel sector, the focus is to produce green steel, green pig iron and green iron ore production. • • • Currently R&D study is ongoing with the IIT, Bombay to develop technology for green hydrogen production. IIT, Bombay has done studies on industrial iron ore samples and witnessed positive outcomes. Further development is in progress and we have extended our engagement by another six months. At our Met coke division (VAB), with in-house designmodifications,wehavereducedthecoking cycle by 4 hours and gained 4% productivity by modifying refractory design (introducing tongue and groove floor refractory brick) and MOC. Further under digitalisation, we are using AI-ML based coal blend optimiser model in our coke oven (VAB) which has resulted in cost saving andqualitybenefitofcokeandsimilarmodel is being applied in our blast furnace for burden Optimisation. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 In Cairn, focus is to enhance production, improved operationalefficienciesandreducedexposuretorisk through R&D vertical. • • • • • • • For enhancing production, an extensive hydraulic fracturing campaign(>40wells)inMangalafield was carried out to improve productivity in wells whichhadseensignificantdropduetopolymer deposition related near well damage. This is the largest such campaign carried out in multi-Darcy reservoir(4-5Darcy),perhapsforthefirsttime anywhere in the world. We are also exploring the feasibility of taping the potential of Geothermal energy in our Rajasthan gasfieldsincollaborationwiththeIndianInstitute of Technology ("IIT"). We have also collaborated with TERI research institute for examining the feasibility of microbial injectioninBhagyamfield,whichcanreducetheoil viscosity and lead to incremental recoveries. As part of our digitalisation journey, we have implemented the “Smart Oilfield” technology as a part of our digitalisation efforts to transform our ways of working. Forimprovingoperationalefficiencies,wehave undertaken end-to-end digitalisation from supply to consumption of polymer to enhance tracking, improve quality, optimise usage, and reduce the overall cost. We are also utilising machine learning based reservoir-stimulation models to automate routine surveillance tasks and build analytical models to make data-driven decisions for production enhancement. Cairn has also rolled out the Metaverse platform for improved employee engagement while ramping up AR/VR-based HSE training for plant employees. INVESTOR RELATIONS 6. Vedanta has an active Investor Relations function ("IR function") that continuously engages with domestic and international shareholders and proactively solicits input from all stakeholders. The function strives to continuously incorporate and outperform international benchmarks for IR practices. The IR function endeavours to communicate the Company’s unique investment case and value creation potential, to capital market participants, to enable fair valuation of the Company’s stock. Shareholder Engagement The IR Function engages with shareholders at various platforms to communicate business outlook, risks andopportunities,newmacroandcompanyspecific developments. This reduces information asymmetry and builds positive perception. The engagement platforms include quarterly earnings calls, Investor/Analyst Day, site visits for key businesses, sell-side conferences, one-on-one and group meetings. These engagements are extended to INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS include the senior leadership of the Company on occasions. These engagement opportunities, with the Group's Promoters, CEO and CFO along with business CXOs are well appreciated by the shareholder and analysts. Shareholder Communication Shareholders can contact the Company at any time with the contact details available online for Queries, Concerns and Inquiries or Feedback at www.vedantalimited.com. The feedback, suggestions and concerns shared by our shareholders and analysts are promptly communicated to the Board through the Chairman, the Senior Independent Director, the CEO, the CFO, Investor Relations Head and Company Secretary. Continuous communication with our stakeholders enables the Board and senior management to gain insight into shareholder perception and concerns. Shareholder Disclosures Vedanta has set high standards of reporting through detailed and transparent disclosures on the Company’s operational andfinancialperformance.YourCompanyhadvoluntarily createditsfirstIntegratedReport(forFY2018)and continued its publication ever since. An integrated report has a forward-looking focus and sets out how an organisation’s strategy, governance and performance lead to creation of value. The Company has a digital, interactive microsite on the Vedanta corporate website to provide an interactive experience to shareholders, investors and analysts among other stakeholders. This enables timely dissemination of business updates beyond the communication through annual reports and quarterly results collaterals. The Company was declared the ‘Platinum Winner’ within its industry in $10+ billion revenue category at the LACP Vision Awards for its Integrated Annual Report FY 2022. KEY INITIATIVES WITH RESPECT TO VARIOUS STAKEHOLDERS The Company maintains its focus on all-round development and contribution towards its stakeholders. The Integrated Report and the Sustainability Report, which are separately published, provide detailed information on the ESG and investor-focussed key initiatives taken by the Company towards its employees, shareholders, investors, business partners, civil society, local community and nation at large. 7. CORPORATE GOVERNANCE REPORT ON CORPORATE GOVERNANCE ("CORPORATE GOVERNANCE REPORT") Good corporate governance underpins the way we conductbusiness.YourDirectorsreaffirmtheircontinued commitment to the highest level of corporate governance practices. Your Company fully adheres to the standards set out by the SEBI for corporate governance practices. Your Company is consistent in maintaining the exemplary 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. 193 DIRECTORS’ REPORT 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 accountabilityforefficientandethicalconductofbusiness. Our disclosures seek to attain the best practices in international corporate governance, and we constantly endeavor to enhance long-term shareholder value. Our Corporate Governance Report for FY 2023 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 endeavor to work in the best interest of the Company. TheDirectorsholdafiduciaryposition,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 andincludesindividualswithfinancialexperienceanda diverse background. In line with the recommendation of SEBI and our relentless endeavor to adhere to the global best practices, the Company is chaired by Mr. Anil Agarwal, Non-Executive Chairman effective 01 April 2020. Directors During FY 2023, no new appointment was made on the Board of the Company. Further, pursuant to the recommendation of NRC, the Board approved the re-appointment of Mr. Akhilesh Joshi (DIN: 01920024) for a 2ndandfinaltermof2yearseffective from 01 July 2022 to 30 June 2024, Ms. Padmini Sekhsaria (DIN: 00046486) for a 2ndandfinaltermof2yearseffective from 05 February 2023 to 04 February 2025 and Mr. DD Jalan (DIN: 00006882) for a 2ndandfinaltermof3years effective from 01 April 2023 to 31 March 2026. The re-appointment of Mr. Akhilesh Joshi was approved by shareholders in the Annual General Meeting held on 10 August 2022 and the re-appointment of Ms. Padmini Sekhsaria and Mr. DD Jalan were approved by the shareholders through postal ballot resolution on 28 April 2023. In the opinion of the Board, the Independent Directors re-appointed during the year, possess requisite integrity, expertise,experienceandproficiency. BriefProfileandotherrelatedinformationseeking re-appointment is provided in the AGM Notice. 194 Key Managerial Personnel Mr.AjayGoel,ActingGroupChiefFinancialOfficerofthe Company tendered his resignation in the Board Meeting dated 28 March 2023 effective from close of business hours on 09 April 2023. The Board took note of the same and placed on record its sincere appreciation for the services rendered by him during his tenure and wished him the very best for his future endeavours. Senior Management Personnel The Board, on the basis of the recommendation of NRC, in its meeting held on 27 January 2023, appointed Mr. Nicholas John Robert Walker, CEO – Oil & Gas Business, as SMP of the Company with immediate effect. Mr. Nicholas John Robert Walker brings 30 years of rich and diverse international experience in technical, commercial, and executive leadership roles. He has served as President andChiefExecutiveOfficeratLundinEnergy,oneofthe leading European Independent E&P companies and been associated with the Companies like BP, Talisman Energy and Africa Oil. Your Board believes that Mr. Nicholas will drive adoption and deployment of best-in-class oil & gas technologies and processes, with focus on innovation and digitalisation, for business transformation. The KMP and SMP, similarly, comprises multifarious leaders witheachmemberbringingintheirkeyproficiencyin different areas aligned with our business and strategy. A comprehensive update on the change in the Directorate, KMP and SMP 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 the Act, Mr. Sunil Duggal (DIN: 07291685), WTD and CEO 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 NRC, Board recommends his re-appointment. 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 attentionandconsiderationaregiventospecificmatters. Accordingly, the Board has established Committees to assist it in exercising its authority. Each of the Committees have 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 specificaspectsofCorporateGovernanceandexpeditious resolution of issues of governance as and when they arise. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS VEDANTA LIMITED Board Committees Statutory Board Committees Audit & Risk Management Committee Nomination & Remuneration Committee Corporate Social Responsibility Committee Stakeholders' Relationship Committee Other Committees ESG Committee Share & Debenture Transfer Committee Committee of Directors An all-embracing update on the Board, its committees, their composition, terms and reference, meetings held during FY 2023 and the attendance of each member is detailed in the Corporate Governance Report. BOARD EFFECTIVENESS Familiarisation Program for Board Members Your Company has developed comprehensive induction processes for the new Board members which aim to provide them with an opportunity to familiarise themselves with the Company, its Board and management, its operations and the Company’s culture. They are also familiarised with Company’s organisational and governance structure, governance philosophy/principles, code of conduct and key policies, Board’s way of working and procedures, formal information sharing protocol between the Board and the management, Directors’ roles and responsibilities and disclosure obligations. The details of the familiarisation 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. Pursuant to the provisions of the Act and Listing Regulations, the Board has carried out an annual evaluation of its own performance, the performance of its Committees, Chairman, Vice-Chairman, CEO, Directors, and the governance processes that support the Board’s work. As a part of governance practice, the Company, had engaged,aleadingconsultancyfirm,toconducttheBoard Evaluation Process which was facilitated by way of an online structured questionnaire ensuring transparency and independency of the management. The evaluation parameters and the process have been explained in the Corporate Governance Report. Feedback Mechanism The results of evaluation showed high level of commitment and engagement of Board, its various committees and seniorleadership.TheBoardwassatisfiedwithoverall performance and effectiveness of the Board, Committee and Individual Directors and appreciated Company’s ethical standards, transparency and progress on sustainability/ ESG during the year. The Board Members also provided their inputs on the Board processes, areas of improvement and the matters for enhancing the overall effectiveness of the Board.ItwasnotedthattheBoardasawholeis functioning as an effective and cohesive body. BOARD DIVERSITY AND INCLUSION The Board sets the tone for diversity and inclusion 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 beneficialtotheCompany’slong-termsuccessandinthe interests of Vedanta’s stakeholders. The Board Diversity Policy adopted by the Board sets out its approach to diversity. The Policy can be accessed at www.vedantalimited.com. 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. 195 DIRECTORS’ REPORT POLICY ON DIRECTORS’ APPOINTMENT AND REMUNERATION The Nomination & Remuneration Policy adopted by the Board on the recommendation of NRC enumerates the criteria for assessment and appointment/re-appointment of Directors, KMPandSMPonthebasisoftheirqualifications,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. 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. Company ensures compliance 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. Pursuant to the provisions of Section 118 of the Act, 2013 during FY 2023, the Company has adhered with the applicable provisions of the Secretarial Standards (“SS-1" and “SS-2") relating to ‘Meetings of the Board of Directors’ and ‘General Meetings’ issued by the Institute of Company Secretaries of India (“ICSI")andnotifiedbyMCA. INDEPENDENT DIRECTORS STATEMENT The Company has received declaration from all the IndependentDirectorsconfirmingthattheycontinueto meet the criteria of independence as prescribed under the Act and Listing Regulations and comply with the Code for IndependentDirectorsasspecifiedunderScheduleIVof 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. Auditors: Statutory Auditors In terms of Section 150 of the Act read with Rule 6(1) and 6(2)oftheCompanies(AppointmentandQualificationof Directors) Rules, 2014, Independent Directors of the Company haveconfirmedthattheyhaveregisteredthemselveswith the databank maintained by the Indian Institute of Corporate Affairs ("IICA"). ANNUAL RETURN In terms of provisions of Section 92(3), 134(3)(a) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, 2014, the Annual Return in Form MGT- 7forthefinancialyearended31March2023isplacedon the website of the Company and can be accessed at www. vedantalimited.com. AUDIT REPORTS AND AUDITORS Audit Reports: TheStatutoryAuditorshaveissuedunmodifiedopiniononthe financialstatementsoftheCompanyasofandfortheyear ended 31 March 2023. • • The Statutory Auditors’ report for FY 2023 does not containanyqualification,reservationoradverse remarks which calls for any explanation from the Board of Directors. The Auditors’ report is enclosed with the financialstatementsintheAnnualReport. The Secretarial Audit Report for FY 2023 does not containanyqualification,reservation,oradverseremark. The report in form MR-3 along with Annual Secretarial Compliance Report is enclosed as 'Annexure D' to the Directors’ Report. Further, in terms of Regulation 24(a) of Listing Regulations, the Secretarial Audit Report of BALCO, an unlisted material subsidiary of the Company is also enclosed as 'Annexure D-1' to this report. Auditors Certificates: • • AspertheListingRegulations,theauditors’certificate on corporate governance is enclosed as an Annexure to the Corporate Governance Report forming part of the AnnualReport.TheCertificatedoesnotcontainanyother qualification,reservation,oradverseremarkexceptas mentioned in the report. AcertificatefromCompanySecretaryinPractice certifying that none of the directors on the Board of the Companyhavebeendebarredordisqualifiedfrombeing appointed or continuing as directors of companies by the SEBI/MCA or any such statutory authority forms part of theCorporateGovernance Report. M/s S.R. Batliboi & Co. LLP, Chartered Accountants (Firm Registration No. 301003E/E300005) had been appointed as the Statutory Auditors of the Company in the 56thAnnualGeneralMeetingtoholdofficeforaperiodoffive(5)yearstotheconclusionof61st Annual General Meeting. TheAuditorshaveconfirmedthattheyarenotdisqualifiedfrombeingre-appointedasStatutoryAuditorsoftheCompany. ThereportoftheStatutoryAuditorsalongwithnotestofinancialstatementsisenclosedtothisReport.TheNotesonfinancial statements referred to in the Auditors’ Report are self-explanatory and do not call for any further comments. TheAuditorshavealsofurnishedadeclarationconfirmingtheirindependenceaswellastheirarm’slengthrelationshipwiththe 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. 196 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Secretarial Auditors M/s Vinod Kothari & Co., Practicing Company Secretaries had been appointed by the Board to conduct the secretarial audit of the Company for FY 2023. TheCompanyhadreceivedacertificateconfirmingtheireligibilityandconsenttoactastheAuditors. TheSecretarialAuditReportforFY2023formspartofthisreportandconfirmsthattheCompanyhascompliedwiththeprovisionsof 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 08 February 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 FY 2023 has also been submitted to the Stock Exchanges within the stipulated timeline. The Secretarial Audit Report of its unlisted material subsidiary is annexed to this report. 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 FY 2023. M/s Ramnath Iyer & Co., Cost Accountants were nominated as the Lead Cost Auditors. TheCompanyhadreceivedacertificateconfirmingtheireligibilityandconsenttoactastheAuditors. 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 KPMG had been appointed as the Internal Auditors of the Company for FY 2023 to conduct the Internal Audit on the basis of detailed Internal Audit Plan. The Company has an independent in-house MAS team to manage the group’s internal audit activity and that functionally reports to the Audit & Risk Management Committee. REPORTING OF FRAUD BY AUDITORS During the reporting year, under Section 143(12) of the Act, none of the Auditors of the Company have reported to the Audit & Risk Management Committee of the Board, any instances of fraud by the Company or material fraud on the Companybyitsofficersoremployees. 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 to safeguard the 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 aforementioned 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. 197 DIRECTORS’ REPORT 8. OTHER DISCLOSURES RELATED PARTY TRANSACTIONS Your Company has in place a Policy on Related Party Transactions (“RPT”) (“RPT Policy”) formulated in line with the provisions of the Act and Listing Regulations. The Company has voluntarily adopted a stricter policy as against the legal requirements. 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 Standard Operating Procedures has been formulated to identify and monitor all such transactions. During FY 2023, 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 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 RPTs are subjected to independent review by a reputedaccountingfirmtoestablishcompliancewith the requirements of RPTs under the Act and Listing Regulations. Duringtheyear,themateriallysignificantRPTspursuant to the provisions of Listing Regulations had been duly approved by the shareholders of the Company in the 57th Annual General Meeting held on 10 August 2022. Further, therehavebeennomateriallysignificantRPTsduringthe year pursuant to the provisions of the Act. 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 `74,12,01,00,000 divided into 44,02,01,00,000 number of equity shares of `1/- each and 3,01,00,00,000 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 31 March 2023 is provided below: Particulars Authorised Share Capital Paid-up Capital Listed Capital Shares under Abeyance pending allotment Amount (`) 74,12,01,00,000 3,71,75,04,871 3,71,71,99,039 3,05,832 The details of the Capital Evolution has been provided on the Company’s website and can be accessed at www.vedantalimited.com. 198 SUBSIDIARIES, JOINT VENTURES, AND ASSOCIATE COMPANIES Your Company has 44 subsidiaries (13 direct and 31 indirect) as at 31 March 2023, as disclosed in the notes to accounts. During the year and till date, the following changes have taken place in Subsidiary Companies: • • • • • • • • Athena Chhattisgarh Power Limited acquired on 21 July 2022 under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016, subject to NCLT approval which is pending as on the balance sheet date. Hence, not covered in the total number of subsidiaries above. Facor Realty and Infrastructure Limited struck off on 13 January 2023. Hindustan Zinc Fertilizers Private Limited incorporated on 07 September 2022. Zinc India Foundation incorporated on 05 August 2022. Cairn Energy Gujarat Block 1 Limited, deregistered on 05 July 2022. Lakomasko BV liquidated on 03 March 2023. CIG Mauritius Holding Private Ltd. and CIG Mauritius Private Ltd. have been dissolved effective from 01 March 2023. Pursuant to dissolution, Cairn Lanka Private Limited has become the direct subsidiary of Cairn Energy Hydrocarbons Limited. The Mumbai NCLT and Chennai NCLT has passed orders dated 06 June 2022 and 22 March 2023 respectively sanctioning the scheme of amalgamation of Sterlite Ports Limited ("SPL"), Paradip Multi Cargo Berth Private Limited ("PMCB"), Maritime Ventures Private Limited ("MVPL"), Goa Sea Port Private Limited ("GSPL"), wholly owned subsidiaries/step down subsidiaries of Sesa Resources Limited ("SRL"), with Sesa Mining Corporation Limited ("SMCL"). StatutoryfilingwithMCAisinprogress. • Facor Power Limited is merged into Ferro Alloys Corporation Limited effective on 21 November 2022. As at 31 March 2023, the Company has 06 associate companies and joint ventures. Associate Companies and Joint Ventures: • • • Gaurav Overseas Private Limited RoshSkor Township (Pty) Ltd Goa Maritime Private Limited • Madanpur South Coal Company 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 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 Act, a statement containing the salient features of thefinancialstatementofthesubsidiaryandassociate companiesisattachedtothefinancialstatementinForm AOC-1. The statement also provides details of performance andfinancialpositionofeachofthesubsidiariesandtheir contribution to the overall performance of the Company. In accordance with Section 136 of the Act, the audited StandaloneandConsolidatedfinancialstatementsofthe 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 financialstatementsoftheCompanyandofthesubsidiary companies shall be made available upon request by any memberoftheCompany.Additionally,thesefinancial statements shall also be available for inspection by members on all working days during business hours at the RegisteredOfficeoftheCompany. MATERIAL SUBSIDIARIES The Company has adopted a policy on determination of material subsidiaries in line with 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 FY 2023: • • • Hindustan Zinc Limited ("HZL"), a listed subsidiary; Cairn India Holdings Limited ("CIHL"), an unlisted subsidiary; and Bharat Aluminium Co. Limited ("BALCO"), an unlisted subsidiary. Further, the SEBI vide SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2023, requires additional details to be provided for material subsidiaries. The details are as follows: Particulars Date of Incorporation Place of Incorporation Material Subsidiary HZL CIHL BALCO 10 January 1966 02 August 2006 27 November 1965 Udaipur Jersey New Delhi Name of Statutory Auditors S.R. Batliboi & Co. LLP MHA MacIntyre Hudson S.R. Batliboi & Co. LLP Date of appointment of Statutory Auditors 09 August 2021 10 March 2021 17 September 2021 In terms of the provisions of Regulation 24(1) of the Listing Regulations, during FY 2023, appointment of one of the Independent Directors of the Company on the Board of unlisted material subsidiary was applicable only to CIHL. In compliance with the above requirement, Mr. DD Jalan, Independent Director of the Company, had been appointed as Director of CIHL. The Company is in compliance with the applicable requirements of the Listing Regulations for its Subsidiary Companies during FY 2023. DEBENTURES During FY 2023, your Company raised `4,889 crore through issuance of Secured and Unsecured, Rated, Redeemable, Non-Cumulative, Non-Convertible Debentures ("NCDs") of face value of `10,00,000 each on private placement basis as per the following details: Coupon Rate Date of Allotment No. of NCDs Total Amount (in ` crore) Tenor Maturity Date 8.74% Secured Rated Listed Redeemable Non-Convertible Debentures 3M T Bill Linked Unsecured Rated Listed Redeemable Non-Convertible Debentures The aforesaid debentures are listed on BSE. 29 June 2022 40,890 4,089 10 years 29 June 2032 16 December 2022 8,000 800 01 year 03 months 15 March 2024 Further, the details of outstanding NCDs as of 31 March 2023 have been detailed in the Corporate Governance Report. COMMERCIAL PAPERS The Commercial Papers ("CPs") issued by the Company have been listed on NSE and have been duly redeemed on timely basis. 199 DIRECTORS’ REPORT As on 31 March 2023, there are outstanding CPs aggregating to `500 crore. 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 Investor Education and Protection Fund ("IEPF/ Fund") account pursuant to IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules") 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 520 No. of Equity Shares of `1/- each 5,14,372 - 06 - 63 - 7,836 - 46,920 451 4,59,616 TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS TO INVESTOR EDUCATION AND PROTECTION FUND In accordance with the provisions of the Act and IEPF Rules, as amended from time to time, the Company is required to transfer the following to IEPF: Dividend amount that remains unpaid/unclaimed for a period of seven (07) years; and Shares on which the dividend has not been paid/claimed for seven (07) consecutive years or more. Additionally, pursuant to Rule 3(3) of IEPF Rules, in case of term deposits of companies, due unpaid or unclaimed interest shall be transferred to the Fund along with the transfer of the matured amount of such term deposits. 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 the Central Government. Further, in compliancewithIEPFRulesincludingstatutorymodification(s)thereof,theCompanypublishesnoticesinnewspapersand sendsspecificletterstoallshareholderswhosesharesareduetobetransferredtoIEPF,toenablethemtoclaimtheir rightful dues. With the continuous efforts of the Company, a total of 87 investor claims have been released from IEPF till 30 April 2023 aggregating to 1,21,570 equity shares. Dividend and other amounts transferred/credited to IEPF during FY 2023 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 Financial Year Type of Amount Date of Declaration 2014-15 2014-15 2015-16 Total Final Dividend 11 July 2015 Final Dividend Interim Dividend 21 July 2015 27 October 2015 Amount transferred to IEPF (in `) 1,86,14,486.00 Date of transfer to IEPF 03 September 2022 46,62,800.00 3,09,22,500.00 5,41,99,786.00 14 September 2022 06 December 2022 *An additional amount of `4,05,581 (including `10,000 related to sub-judice matter) pertaining to Unpaid Matured Deposits and interest accrued thereon has been identified for transfer to IEPF during the year. The same is in the process of transfer. Inviewofspecificorder(s)ofcourt/tribunal/statutoryauthorityrestrainingtransferofsharesanddividendthereon,such shares and unpaid dividend have not been transferred to IEPF pursuant to Section 124 of the Act and Rule 6 of IEPF Rules includingstatutorymodification(s)orre-enactment(s)thereof. 200 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The details of dividend declared during the year on shares already transferred to IEPF are provided below: Dividend declared during FY 2023 on shares already transferred to IEPF Type of Dividend Date of Declaration Interim Dividend (1st) Interim Dividend (2nd) Interim Dividend (3rd) Interim Dividend (4th) Interim Dividend (5th) Total 28 April 2022 19 July 2022 22 November 2022 27 January 2023 28 March 2023 Amount transferred to IEPF (in `) 13,54,67,698.11 8,33,63,314.19 7,68,84,463.84 5,57,79,361.00 Date of transfer to IEPF 23 May 2022 08 August 2022 13 December 2022 16 February 2023 9,30,00,087.78 17 April 2023 44,44,94,924.92 Shares transferred/credited to IEPF during FY 2023 During the year, the Company transferred 2,48,924 equity shares of `1/- each comprising of 891 shareholders to IEPF. The Company has also uploaded the details of unpaid and unclaimed amounts lying with the Company as on 10 August 2022 (the date of last AGM) 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 FY 2024 The dates on which unclaimed dividend and their corresponding shares would become due to be transferred to IEPF during FY 2024 are provided below: Dividend due to be transferred to IEPF during FY 2024 Particulars Date of Declaration Date of completion of seven years Due date for transfer to IEPF Amount as on 31 March 2023 (in `) Final Dividend 2015-16 21 July 2016 26 August 2023 25 September 2023 Interim Dividend 2016-17 28 October 2016 03 December 2023 02 January 2024 Total 32,09,337.00 1,71,96,505.25 2,04,05,842.25 Ms.PrernaHalwasiya,theCompanySecretaryandComplianceOfficeroftheCompanyisdesignatedastheNodalOfficerunder the provisions of IEPF. The contact details can be accessed on the website of the Company at www.vedantalimited.com. TRANSFER TO RESERVES TheCompanyproposesNiltransfertoGeneralReserveoutofitstotalprofitof`27,356croreforthefinancialyear. 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 inthestandalonefinancialstatements.(PleaserefertoNotestothestandalonefinancialstatements). FIXED DEPOSITS As on 31 March 2023, 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 Act and the Rules framed thereunder during the year under review. MATERIAL CHANGES AFFECTING THE FINANCIAL POSITION OF THE COMPANY Nomaterialchangesandcommitmentshaveoccurredsubsequenttothecloseofthefinancialyeartillthedateofthis ReportwhichmayaffectthefinancialpositionoftheCompany. 201 DIRECTORS’ REPORT SIGNIFICANT and MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS Providedbelowarethesignificantandmaterialorders which have been passed by any regulators or courts or tribunals against the Company impacting the going concern status and Company’s operations in the future. Iron-Ore Division – Goa Operations The Supreme Court of India ("SC") in the Goa Mining matter in 2014 declared that the deemed mining leases of the lessees in Goa expired on 22 November 1987 and the maximum of 20 years renewal period of the deemed mining leases in Goa under the Mines and Minerals (Development and Regulation) Act ("MMDR") had also expired on 22 November 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. 12 January 2015). These renewal of mining leases were challenged before the SC by Goa Foundation and others in 2015 as being arbitrary and against the judgment of the SC in the earlier Goa mining matter. The SC passed the judgement in the matters on 07 February 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 16 March 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 hadfiledapplicationsinthependingAbolitionActmatterfor resumption of mining in the State. The Central Government hadalsofiledanearlyhearingapplicationinthelong pending abolition matter. WeseparatelyalsofiledaSpecialLeavePetitioninthe SC in appeal from the High Court order against a non- consideration of our representation seeking an amendment of the mining lease till 2037 based on the provisions of the MMDR Amendment Act, 2015. The Special Leave Petition was disposed off by the SC vide an order dated 07 September 2021. WehadfiledareviewpetitionagainsttheorderpassedbySC dated 07 September 2021 which was dismissed by the SC. On 04 May 2022, Vedanta Limited and other group companies received notices from DMG, Goa under the provisions of Section 12(1)(hh) of the Mineral Concession Rules (Other than Atomic and other Hydrocarbon Energy Minerals) Concession Rules, 2016 directing to vacate the mining leases by 06 June 2022 pursuant to judgment of the SC banning mining operations in the State of Goa. WritpetitionswerefiledagainstthesenoticesofDMG on 17 May 2022 before the High Court of Bombay at Goa contending that Section 12(1)(hh) of MCR Rules, 2016 cannot be extended to dispossession from the mining leases. Further, the challenge to the constitutional validity of the Goa, Daman, and Diu Mining Concession (Abolition and Declaration of Mining Leases) Act, 1987 which abolished the mining concessions and converted them to mining 202 lease, is pending before the Supreme Court since 1998, and until the matter is pending, no decision regarding the title of the mining leases could be taken as the companies have been granted the mining concession in perpetuity by the Portuguese mining laws. The writ petitions were reserved for orders on 19 August 2022. Vide order dated 07 October 2022, the High Court of Bombay at Goa dismissed all the writ petitions. Thereafter, aSpecialLeavePetitionwasfiledbyanothermininglessee before the SC against the order dated 07 October 2022. The said SLP was also dismissed vide order of the Supreme Court dated 21 November 2022. Copper Division The Copper division of Vedanta Limited has received an order from Tamil Nadu Pollution Control Board ("TNPCB") on 09 April 2018 whereby they have rejected the Company’s application for renewal of Consent to Operate ("CTO") for the 4,00,000 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 andfiledanappealwithTNPCBAppellateauthorityagainst the order. During the pendency of the appeal, the TNPCB vide its order dated 23 May 2018 ordered disconnection of electricity supply and closure of the Company’s Copper Smelter plant. Post this, the Govt of Tamil Nadu on 28 May 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 granted liberty to the Company to approach the Madras High Court for relief. On 18 August 2020, the Division Bench of Madras High CourtdismissedallthewritpetitionsfiledbytheCompany. VedantaLimitedsubsequentlyfiledaSpecialLeavePetition to appeal against the Madras High Court decision before the Supreme Court. The Supreme Court, on 04 May 2023, upontakinguptheinterlocutoryapplicationsfiledbythe Company for essential care and maintenance of the Plant and for removal of material within the Plant premises, directed the State Government to take necessary directions with respect to certain activities and to reconsider certain other activities in furtherance of its earlier order within specifiedtimelines.TheCourtfurtherorderedfortheSLPto belistedon22and23August2023forfinalhearing. In the meantime, the Madurai Bench of the High Court of MadrasinapublicinterestlitigationfiledagainstVedanta by Fathima Babu held through 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 the said application shall be decided by the competent authority on or before 23 September 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, Forest and VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 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 theNGTcaseoruponfilingofaReportfromtheState Government/District Collector, Thoothukudi. Separately, SIPCOT through its letter dated 29 May 2018, cancelled 342.22 acres of the land allotted to Vedanta Limited for the proposed expansion project. Further, the TNPCB issued orders on 07 June 2018, directing the withdrawal of the consent to establish the expansion project, which was valid until31March2023.InawritfiledbeforeMadrasHigh Court Madurai Bench challenging the lease cancellation order, Madras High Court through its order dated 03 October 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 07 June 2018, TNPCB withdrew the CTE granted foraperiodoffive(05)yearsfortheexpansionproject.The CompanyhasfiledAppealsbeforetheTNPCBAppellate Authority challenging withdrawal of CTE by the TNPCB. 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 implementanycorporateactionwithinthespecifiedtimelimit. 9. AWARDS AND RECOGNITION In a bid to keep ensuring its relentless quest for growth and excellence, the Company continues to be committed towards maintaining the highest standards of corporate governance and sustainable practices. As a recognition for our unconventional innovations and focussed drive to achieve best-in-class operations, the Company has been winning a multitude of accolades at various forums while acquiring plaudits as the recipient of numerous prestigious awards for demonstrating its business ethos. These embellishments to Vedanta’s cognizant candidature deliver a testament to the progress made by the Company and honor its diligent efforts towards delivering value for the welfare of all stakeholders and the society as a whole. The details of the key recognitions secured by the Company have been highlighted in a separate section in the Annual Report. 10. DIRECTORS’ RESPONSIBILITY STATEMENT As stipulated in Section 134 of the Act, your Directors subscribe to the “Directors’ Responsibility Statement” and tothebestoftheirknowledgeandability,herebyconfirms that: in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same; (a) (b) INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (c) (d) (e) (f) and fair view of the state of affairs of the Company at theendofFY2023andoftheprofitandlossofthe Company for that period; theyhavetakenproperandsufficientcareforthe maintenance of adequate accounting records in accordance with the provisions of the 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; theyhavelaiddowninternalfinancialcontrolsto be followed by the Company and that such internal financialcontrolsareadequateandareoperating effectively; and proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. 11. ACKNOWLEDGEMENTS AND APPRECIATION At Vedanta, our business is deftly managed by an adroit set of leaders with global and diverse experience in the sector in order to accomplish the mission of carving our niche as the leading global natural resource company. The professionally equipped and technically sound management has set progressive policies and objectives, follows best global practices, all with a plausible vision to take the Company ahead to the next level. Having received external reassurance in all our commitments over the years, the Directors take this opportunity to place on record, their sincere appreciation for the Central and State government authorities, bankers, stockexchanges,financialinstitutions,depositories, analysts, advisors, local communities, customers, vendors, business partners, shareholders, and investors forming part of the Vedanta family for their sustained support, admirable assistance and endless encouragement extended to the group at all levels. We would also like to express our earnest regard to all employees for their ardent enthusiasm and interminable effortsdirectedtowardslodgingsignificantandeffective contributions to the continued growth of the Company. Our heartiest gratitude is further undertaken to be rendered to all our stakeholders for their unflinching faith in the Company. We look forward for bestowal of your continued support and solidarity in future as we diligently strive to deliver enhanced value for our stakeholders and inscribe on the footprints of nation building for one of the fastest growing economies of the world. For and on behalf of the Board of Directors Anil Agarwal Non-Executive Chairman DIN: 00010883 203 they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true Place: London Date: 12 May 2023 DIRECTORS’ REPORT ANNEXURE A Conservation of Energy and Technology Absorption (A) Conservation of Energy: Cambay Operations Conservation of natural resources continues to be the key focus area of your Company. Some of the important steps taken in this direction are as follows: OIL & GAS BUSINESS: Rajasthan Operations i. Cairn has signed PDA for 25 MW renewable energy with Serentica Renewable 3 India Private Limited: Annual GHG reduction potential of 1,31,000 tonnes of CO2e/annum. ii. Installationof3х1.1MWGasEngineGeneratorsat MWP - 01 and 12 Local separation facility: Annual GHG reduction potential of 7,650 tonnes of CO2e/ annum. iii. iv. v. vi. Reduction in RDG flare by process interventions e.g., optimisation of recycle gas compressors and installation of ejector: Annual GHG reduction potential of 17,850 tonnes of CO2e/annum. Installation of 220 KWP of solar rooftop in RJ Gas: Annual GHG reduction potential of ~275 tonnes of CO2e/annum. Installation of 130 KWP solar rooftop at Radhanpur Terminal: Annual GHG reduction potential of ~165 tonnes of CO2e/annum. Installation of ~200 Solar lights at Mangala Processing Terminal and associated well pads for renewable power generation ~41,500 units/annum. vii. Solar rooftop installed on 10 AGIs (Above Ground Installations) for pipeline operations: Annual GHG reduction potential of ~190 tonnes of CO2e/ annum. viii. Revamping of 100 KWP solar plant at Sara WP - 01: Annual GHG reduction potential of 130 tonnes of CO2e/annum. ix. x. Energy conservation by conversion of induction motor to Permanent Magnetic Motor ("PMM") has resulted in energy saving of ~10,000 GJ and GHG reduction of 1,976 tonnes of CO2e in FY 2023. Energy conservation by replacement of conventionallightsbyenergyefficientlighting: ~6 lakh units energy saved in FY 2023 resulted in GHG reduction of ~420 tonnes of CO2e. i. Commissioned 10 KWP Solar Plant at Cambay asset. COPPER BUSINESS: i. 16 MW Renewable Energy contract signed off with Serentica Renewables India Private Limited. ii. Smart (AI and ML based) fuel optimisation project kicked off with estimated 3,554 tCO2 eq. reduction/year. iii. Secondary Copper Sourcing – 13,329 MT (Est) - - Silvassa - Estimated reduction of 9,630 tCO2 eq. (Scope 3 emissions). Fujairah - Estimated reduction of 5,074 tCO2 eq. (Scope 3 emissions). iv. Solar Power Plant Commissioning and Generation - - 826 KWP Ground mounted Solar Power plant and 100 KWP Roof top Solar power plant commissioned. YTD Renewable Energy generation of 6,90,872 kWh resulting in reduction of 567 tCO2 eq. v. Cleaner Fuel - Silvassa: CCR – LPG to PNG Boiler – FO to PNG - Fujairah: LPG to PNG – 216 tCO2 eq. vi. Switched to LED lights – 239 tCO2 eq./year reduction. SESA GOA BUSINESS: VAB i. ii. iii. Installed VFD for air compressors in Power plant (Saving – 1,26,000 kWh/annum). Replace existing HT motors with super energy efficientIE4motorsforBlowers(Saving– 3,64,140 kWh/annum). Replacing the old Slag Granulation pumps with energyefficientpumps(Saving–2,52,000kWh/ annum). iv. Replacing the old furnace RWP with energy efficientpump(Saving–5,88,000kWh/annum). Ravva Operations i. Installation of VFD in ETP Blower at Ravva for energy conservation ~4.2 lakh kWh/annum. Annual GHG reduction is 180 tonnes of CO2e/ annum. v. InstallationofCOanalyzertosupplysufficientair to boiler in PP-2 (Saving – 1,050 KNm3 of BFG/annum). vi. Replacement of ACW pumps in PP1 with energy efficientpumps(Saving–1,26,000kWh/annum). 204 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS vii. Conversion of conventional lamps with LED lamps (Saving – 84,000 kWh/annum). POWER BUSINESS: 2,400 MW Jharsuguda Iron Ore Karnataka ("IOK") i. ii. Installation of 120 LED streetlights in haul road from Circle Gate to North Block. The streetlights uses timer- based automatic switching on/off of lights which cuts down extra usage of energy. Elimination of Mobile Lighting towers by installation of Inhouse fabricated 7m lighting towers and supply given through common DG/K.E.B. supply. Diesel saving of 1.92KL/IR/annum eliminated. A total of 4 IRs were eliminated in a similar way. Iron Ore Goa ("IOG") i. ii. iii. iv. v. - - - - Dewatering Pumps running of VFD 120 HP (02 Nos.) and 75 HP (01 No.) at 2 Top Mines: resulting saving 25% on normal consumption. Apron feeder VFD 22 KW Amona Mining 1A Plant: resulting saving 25% on normal consumption. Classifier1and2VFD18.5KWAmonaMining1APlant: resulting saving of 50% on normal consumption. Scrubber VFD 110 KW Amona Mining 1A Plant: resulting saving 25% on normal consumption. LED conversion 100 Nos. Amona Mining Plant: Resulting Saving of 50% on normal consumption. Saving of 2,640 kWh/month and cost saving of `12,276/month (Apron VFD). Saving of 8,880 kWh/month and cost saving of `41,292/month(ClassifierVFD). Saving of 13,200 kWh/month and cost saving of `61,380/month (Scrubber VFD). Saving of 4,320 kWh/month and cost saving of `20,088/month (LED). Met Coke Gujarat i. ii. Replacing of old crusher and conveyor motors with superpremiumefficiencymotors,resultedintoannual saving of 1,09,500 kWh. Replacement of existing Sodium vapor light by LED lights (250 Nos. 200W LED and 300 Nos. 40W LED lights), resulted into annual saving of 1,22,400 kWh. Iron Ore Odisha ("IOO") i. ii. iii. 100 KW LED Lights are installed in both the mines and officesetc.Another47.6KWHPSVtobereplacedwith LED Light (present saving 10,20,540 kWh/annum). 10 Nos. of DG mobile towers was replaced with TPWODL Grid Power (Diesel saving 52.56 KL/annum). 132 KW*2 and 75 KW*1 = 339 KW DG Pumps converted to Electrical pumps operating with TPWODL Grid power (Diesel saving 642.4 KL/annum). i. ii. iii. iv. v. U#1 and 4 Air preheater basket and seals and sector plate replaced to reduce the high flue gas exit temperature at air preheater outlet to design level saving 8 Kcal/kWh in heat rate and 1,700 KW in primary fan consumption. Replacement of U#1 and 4 flue gas duct and fabricfilterbagstoreduceinduceddraftfanpower consumption by 8,000 KW. U#1 and 4 Condenser chemical cleaning done. Savings 12 Kcal/kWh. NDCT100%fillsreplacedtoimprovecondenser vacuum. Savings 20 Kcal/kWh. U#1 and 4 boiler R and M was done with boiler penthouse sealing and SOFA(Separatedoverfire air) installation to reduce metal excursions and to bring main steam temperature and Reheater steam temperature, main steam spray and reheater spray to rated value, thereby saving 10 Kcal/kWh. vi. U#1 and 4 Turbine overhauling done, and savings of 14 Kcal/kWhachieved. CPP 1215 MW Jharsuguda i. ii. iii. iv. v. vi. vii. Replacement of Air preheater basket for 3 units (Unit 1, 2 and 4) to reduce the very high flue gas exit temperature to design level saving 7 Kcal/kWh in heat rate and 355 kWh in Primary fan consumption for the station. TurbineOverhauling(HIPcarrierrefining)inUnit#3,2, 1and4toimproveHPcylinderefficiencyresultedinto saving of 15.2 Kcal/kWh in heat rate for the Station. ReplacementofAirpreheatersealsandfabricfilter bags, flue gas duct repairing for 4 units to reduce Induced Draft and Primary Air fans consumption by 925 kWh. CoolingtowerCTfillsreplacementfor3units(U#1,2 and 8) to save 30 Kcal/kWh of heat rate in unit. Chemical cleaning of condenser done for 2 units (U#1 and 4) to improve cleanliness factor and reduce vacuumlossesbenefitsvacuumimprovementof0.6 KPA and 9 Kcal/kWh savings of heat rate in unit. Condenser bullet cleaning done in Unit #3, 2, 1 and 4 to save in heat rate by 36 Kcal/kWh for the units combined. 2 Nos. Cooling Water system screen cleaner taken in service after refurbishment to rectify frequent condenser choking. viii. 6 Nos. Mill grinding media replaced (1A, 2A, 3A, 4A, 4D, 9A)toimprovemillfinenessandoptimisecombustion efficiencyreducesAuxiliarypowerconsumptionby 0.08% on station. 205 iv. v. ALUMINIUM BUSINESS: Smelter Plant-1 (Jharsuguda) Electrical Energy DC Energy saving i. ii. 100% graphitised cathode pot implementation. Improvement in Pot Voltage drops by bolt and clamp drop reduction. iii. CurrentEfficiencyimprovementinPotlineto94.90%. RUC copper inserted collector bar for pot cathode in 4 pots with saving of 250 kWh/MT per pot. iii. VFD installation for Shot blast Turbines. iv. Airline header separation of different areas in Plant. v. CoolingtowerfillsreplacementinCompressorHouse. vi. Pneumatic no-loss Drain Valve installation in compressor. vii. Evaporator replacement in Dryers to reduce pressure drop. viii. Old BR/CR motor replaced with IE3 motor in Bake oven. ix. Deployment of battery-operated forklifts. Vedanta Lining Design implemented in 3 pots with savings of 250 kWh/MT per pot. x. Scoop Bath Lighting trafo Voltage reduction from 260V to 220V. AC auxiliary Energy saving i. 100% Graphitised Cathode Implementation in smelting pots. ii. Replacement of pulse valve diaphragm in FTP – 1. iii. iv. InstallationofEnergyefficientIE3motorsatvarious areas of plant. Conventional Light replacement with LED in High mast officearea,shopfloor,pathway. v. Airline header separation of different areas in Plant. vi. AnodeStubHoleModificationwith5mvofVoltage Reduction. vii. Shot blast ID fan VFD installation. viii. Retrofittingandsoftwareupgradationworkin2metal tapping vehicles. ix. x. xi. Biodiesel implementation in all Technological vehicles (In 80:20 ratio). Rectifierconversionefficiencyimprovementfrom 98.64% to 98.66%. Replacement of Diesel operated forklift with Battery operated forklift. Smelter Plant-2 (Jharsuguda) Electrical Energy DC Energy saving i. 100% graphitised cathode pot implementation. ii. CurrentefficiencyimprovementinPotlineis94.60%. iii. iv. RUC copper inserted collector bar for pot cathode in 6 pots with saving of 250 kWh/MT per pot. Vedanta Lining Design implemented in 7 pots with savings of 250 kWh/MT per pot. AC auxiliary Energy saving i. Replacement of conventional lights with LED lights. ii. VFD installation in Casthouse-2 Pump house. 206 xi. VFD installation for Cold well Pumps. Lanjigarh – Refinery The following major energy conservation measures are taken at Lanjigarh: i. ii. iii. iv. v. vi. Conversion of Condensate pumps in Digestion unit from DOL to VFD. Annual savings of 3.84 lakh units of electrical energy. Conversion of one HST overflow motor from DOL to VFD. Annual savings of 4.32 lakh units of electrical energy. Energy saving initiatives in main air compressor house. Annual Savings of 22.74 lakh units of Electrical Energy. Max HT dosing in Evaporation Units resulting in steam saving of 20 kt/annum. LED light replacement of 3,200 conventional lights. Annual savings of 3 lakh units of Electrical Energy. Improvement of Liquor productivity from 82 GPL to 85 GPL. Annual savings of 108 lakh units of Electrical Energy. vii. Replacementof71nos.ofIE1motortoenergyefficient IE3 motors. Annual savings of 6.71 lakh units of Electrical Energy. viii. VFD conversion of GQC and FLC pump. Annual savings of 3.06 lakh units of Electrical Energy. ix. x. xi. Pulley replacement of PDS transfer pump. Annual savings of 2.68 lakh units of Electrical Energy. Replacement of 2 nos. of Digestion heaters. Annual savings of 60 kt of steam. Air ingression arrest in Calciner 2 venturi/ESP/other cyclones. Annual savings of 50 kt of HFO. xii. Calandria 1 replacement in Evaporation. Annual savings of 20 kt of steam. xiii. Pulley replacement of ISC pumps in White. Annual savings of 12.09 lakh units of Electrical energy. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Lanjigarh – CGPP i. ii. iii. iv. v. Import of 6,667 MWH of Renewable Energy from Grid. Steam economy improvement in Turbine 3 (TG 3 overhauling, Condenser 3 cleaning, GV servicing and cement insulation in turbine). Savings of 26,308 tonnes of coal/annum. ReplacementofCTfillsinCGPP.Annualsavingsof 8.75 lakhunitsofelectricalenergy. Air pre-Heater replacement in Boiler 2. Savings of 11,700 tonnes of coal/annum. Replacement of Boiler bowl mill ring/roller in Boiler 1, 2 and 3. Annual savings of 3.36 lakh units of electrical energy. vi. Successfulfiringof322TBiomassinBoilersasTrial run in FY 2023 saving of 450 tonnes of CO2. (B) Additional investments and proposals, if any, being implemented for reduction of consumption of energy OIL & GAS BUSINESS: Rajasthan Operations i. ii. iii. Capturingandutilisingthegasfromsatellitefield (Kaameshwari West - 02) through bottling and transferring to LPG/CNG players. Annum GHG reduction potential is 11,000 tonnes of CO2e/annum. Solar Rooftop at Raag Gas WPs – 126 KWP. Annual GHG reduction potential of 160 tonnes of CO2e/annum. Solar rooftop of 15 KW each at 16 above ground installations AGIs. Annual GHG reduction potential of 300 tCO2e/annum. iv. Solar rooftop of 400 KWP at Viramgam Terminal. Annual GHG reduction potential of 500 tonnes of CO2e/annum. Ravva Operations i. Replacement of fluorescent and HPSV lights with LED. Annual energy saving potential of 80,592 kWh. S. No. 1 2 3 Existing Lights New Installed lights 70W HPSV 250W HPSV 400W HPSV 55W LED light – Quantity 60 Nos. 150W LED – Quantity 100 Nos. 250W LED – Quantity 50 Nos. Total saving is Net savings 3,942 kWh 43,800 kWh 32,850 kWh 80,592 kWh ii. Installation of VFD for N-BL-001C ETP air blower Variable Frequency Drive installation in place of soft starter for ETP Water cooled aeration air blower for Energy optimisation. 60% of blower capacity being utilised and remaining was being vented. As per ETP design, blower operates at 1,480 rpm and 70 KPA pressure to give an air flow of 5,733 m3/hr. Currently, Aeration Tanks Maximum Air flow requirement is only 3,200 m3/hr and excess air around 2,000 m3/hr is being vented out to atmosphere. After review, it was inferred that if the blower is operated at 950-1,000 RPM, current demand of air flow to aeration tank can be catered. 160 KW VFD was installed in the month of August 2022 to control the speed of air blower. By operating blower at a speed of 950 RPM, we are saving 1,300 kWh/day. iii. Installation of VFD for C-733 LP flare blower Installation of Variable frequency drive for C-733 LP Flare blower motor to control the air flow and energy conservation, this blower was designed to meet the LP flare combustion requirement. Post commissioning of TSGR compressors, Flare gas quantity reduced, and blower was being underutilised by throttling suction damper. In order to optimise the energy consumption, it was proposed to install a VFD. Before installation of VFD motor Power consumption is 32 KW and average Energy consumption per day is 768 kWh. After installation of VFD, speed was adjusted from 1,500 to 600 RPM for required combustion airflow. After installation of VFD Power consumption is 11 KW and average Energy consumption is 264 kWh and saving of Energy per day is ~500 kWh/Day. Total Energy saving per annum is 1,82,500 kWh. iv. Installation of 100 KWP solar rooftop at Ravva. Cambay Operations i. ii. iii. Installed 10 kWh Roof top solar system on CCR building. Total energy saving will be 12,000 kWh/year. Total71conventionlightfittingsreplacedbyLEDlights in phased manner. Total energy saving achieved was 7,914 kWh/year. Total 7 AC units equipped with energy saving devices in phased manner. Total energy saving achieved was 15,987 kWh/year. COPPER BUSINESS: i. InstallationofBiomassfiredBoiler. ii. VFD installation for RCW Pumps in 35 TPH CCR – Project. iii. 100% RE power project. 207 iv. VFD installation for standby cooling tower pump and HF blower (Estimated energy saving – 47,232 kWh/ year) – Copper Fujairah. v. EnergyefficientAircompressor(Estimatedenergy saving – 54,000 kWh/year) – Copper Fujairah. SESA GOA BUSINESS: VAB Installation of solar power plant ~100 KW capacity at admin and parking area of VAB. Installation of EV charging stations for employees and community. i. ii. IOK i. 3 MW Ground Mounted Solar Power Plant. IOO i. ii. iii. iv. v. vi. GovernmentElectrification(TPWODL)of400KWwet washing plant. GovernmentElectrification(TPWODL)of400KW FEEGRADE MINES Dewater pumping, operation, and lighting. GovernmentElectrification(TPWODL)of400KWBICO Mines operation, and lighting. GovernmentElectrification(TPWODL)of200KWMines officeandUtilitiespower. Installation VFD for Dewatering pumps (250 KW and 75 KW). 70% (100 KW) of all installed lights are LED Lights installedinbothminesandofficeetc.inplaceofHPSV, Fluorescent lamps etc. POWER BUSINESS: 2400 MW Jharsuguda Proposals i. ii. iii. Turbine overhauling of unit 1 and 4. Ecocoilreplacementfromfintypetoplaintypeinunit 1 and 4. NDCTfillsreplacementandcondenserchemical cleaning of unit 1 and 4. iv. Flue gas duct replacement of unit 1 and 4. v. Air preheater seals and basket replacement of unit 1 and 4. 1215 MW Jharsuguda Proposals i. Turbine overhauling for 1 unit. ii. Double layer bucket strainer installation for 5 units. iii. Coolingtowerfillsreplacementfor2units. iv. Air preheater Basket replacement for 1 unit. v. Mill grinding media replacement for 6 Mills. 208 ALUMINIUM BUSINESS: Smelter Plant-1 (Jharsuguda) i. 100% Graphitised cathode pot implementation. ii. ReplacementofoldmotorswithEnergyefficientmotor. iii. 100% LED conversion. iv. v. vi. EFO(Emulsifiedfluidoil)implementationinfurnacefor HFO reduction. Vedanta Lining Design implementation in smelting pots. Vedanta pot controller and Pot technology upgradation. Smelter Plant-2 (Jharsuguda) i. 100% Graphitised cathode pot implementation. ii. Vedanta Lining Design implementation. iii. Vedanta pot controller and pot technology upgradation. iv. Replacement of conventional lights with LED lights. v. VFD installation in Cold well pumps, CT fans. (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. ii. iii. iv. v. vi. Power generation by use of associated natural gas through 3*1.1 MW Gas Engine Generators at MWP - 01 and 12 Local separation and thereby avoiding gas flaring. ~0.64 MMSCFD of natural gas has been saved by recycling gas compressor optimisation along with installation of ejector at RDG gas flare. Renewable energy from 220 KWP of solar rooftop at RJ Gas: ~3,85,000 kWh/annum. Renewable energy generation by 130 KWP of solar rooftop at Radhanpur Terminal: ~2,28,000 kWh/annum. Installation of ~200 Solar lights at Mangala Processing Terminal and associated well pads for renewable power generation ~41,500 kWh/annum. Solar energy from solar rooftop at 10 AGIs (Above Ground Installations) for pipeline operations. ~2,63,000 kWh/annum. vii. Energy Conservation by conversion of induction motor to Permanent Magnetic Motor (PMM) has resulted in saving of 10,000 GJ in FY 2023. viii. Energy conservation by replacement of conventional lightsbyenergyefficientlighting:~6lakhkWhenergy saved in FY 2023. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Ravva Operations i. ii. Total Savings from replacement of LED lights: ~80,592kWh/annum,equivalentmonetarybenefitis ~US$6,447. Installation of VFD for ETP air blower, contribution of energy saving due to VFD (8 months only considered, it was installed on 30 July 2022), annual energy savings~3,12,000kWhequivalentmonetarybenefit US$33,600. iii. Installation of VFD for LP flare blower motor, annual energy saving ~1,82,500 kWh equivalent monetary benefitUS$14,600. Cambay Operations i. Commissioned 10 KWP Solar Plant at Cambay asset which has renewable energy potential of 17,500 kWh/ year. SESA GOA BUSINESS: VAB i. The Energy Conservation measures undertaken in various areas in FY 2023 have an annual saving potential of 1,540 MWH of Electricity/annum for VAB. IOK i. The Energy Conservation measures undertaken in various areas in FY 2023 have an annual saving potential of `4 crore/annum for 3 MW Solar Power Plant. Met Coke Gujarat ii. The Energy Conservation measures undertaken in various areas in FY 2023 have an annual saving potential of 232 MWH of Electricity/annum for SCG. IOO i. In FY 2023, by concerting Dewatering pumping from diesel to electricity, 481 KL diesel was saved and by using LED lights 113.393 MWH power was saved. POWER BUSINESS: 2,400 MW Jharsuguda i. APC reduction by 0.28%. ii. SCC reduction by 3.4 gms/kWh. iii. Forced outage reduction by 1.95%. 1,215 MW Jharsuguda i. Forced outage reduction by 0.3% YOY. ALUMINIUM BUSINESS: Smelter Plant-1 and 2 (Jharsuguda) i. Specificenergyconsumptionreductionby125.1962 kWh/tonne. (D) The steps taken by the Company for utilising alternate sources of energy COPPER BUSINESS: i. Initiated 825 KW Solar Power Project. ii. Planning to set up RE hybrid power through GCPP model. SESA GOA BUSINESS: IOK i. 3 MW Ground Mounted Solar Power Plant. Met Coke Vazare i. Solar hybrid lights for main gate to junction. Solar lighting system - RE Power Supply at all Security Gates. IOG i. VAB i. 100 KW solar power plant installation. ii. EV charging station setup. IOO i. ii. Planning for installation of 100 KW Solar Plant. Planning of 50 KW HPSV Lamps conversion to LED lights. FORM OF DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION, RESEARCH AND DEVELOPMENT (R&D) SpecificareasinwhichR&DwascarriedoutbytheCompany POWER BUSINESS: 2400 MW Jharsuguda i. H2SO4 dosing system started in cooling water system. ii. 3D tracer automated dosing system started. iii. iv. TGA (Thermogravimetric Analyzer) automated coal sampling technology adopted. FF individual compartment DP transmitter installed forcompartmentwiseDPmonitoring,easyidentificationof issuesandrectificationinminimumtime. 209 Technology Absorption, Adaptation and Innovation • • • • • • • Efforts in brief made towards technology absorption, adaptation, and innovation Benefitsderivedas a result of above efforts e.g., product improvement, cost reduction, product development, import substitution OIL & GAS BUSINESS: Ravva Operations • Cambay Operations • • • Protech centralisers were successfully used to reduce the drag while casing running in long open hole intervals - well RX-13 which helped in mitigating the downhole risks that were anticipated. Micro-dense system helped in drilling the reservoir section with the required high mud weights without formation damagerisk.Thissystemhelpedinsafelyandefficientlydrillthewellasperplan,withoutdownholecomplications. Remote equipment health monitoring with wireless IIoT sensors and cloud-based IT infrastructure on OPEX model. AI-basedCCTVforfieldsafetyviolationmonitoringproject. First-of-its-kind auto gas lift application in India in GA-06, LB-10z, LB-05, LB-08 in FY 2022 which has enabled in-situgastobeutilisedforartificialliftofoilproducers–aninnovativesolutionwhichhasopenednewhorizons especially for Operators in offshore. ApplicationofStraddlegasliftsystemsandModifiedGasLiftOrificeinoldcompletionnotcompletedwithany artificialliftjewellery–greatexampleofprocessoptimisationinFY2022inLA-07,LA-05. Rental compressor installation during GLC maintenance on an un-manned LA platform for production sustenance – disruptivemethodandfirst-of-its-kindinIndia. Installation of Shearable Gas Lift valves as smart completion in GA-07 in February 2022 offered latest technology offered rig time saving and enabling early production. Successful water-shutoff job conducted in LB-05. Smart sand control technique like Resin-based consolidation in a cased hole well LA-05 offered excellent results. Launched Well Intervention performance dashboard. This shall enable capturing of production enhancement opportunities and record of execution. SESA GOA BUSINESS: VAB • • • Usingvariablefrequencydriveforspeedcontrolandhenceincreasingefficiency. Turbine upgradation in power plant to increase the generation of PP-2 from 30 MW to 35 MW. Replacingoldmotorswithsuperpremiumefficiencymotors(IE4). Vedanta Lining Design implementation in smelting pots with savings of 250 kWh/MT per pot. Vedanta pot controller implementation in two pot rooms. Replacement of Diesel-operated forklift with Battery-operated forklift. ALUMINIUM BUSINESS: Smelter Plant-1 and 2 (Jharsuguda) • • • OIL & GAS BUSINESS: Ravva Operations • Protech centralisers were successfully used to reduce the drag while casing running in long open hole intervals- well RX-13 which helped in mitigating the downhole risks that were anticipated. Micro-dense system helped in drilling the reservoir section with the required high mud weights without formation damage risk.Thissystemhelpedinsafelyandefficientlydrillthewellasperplanwithoutdownholecomplications. • SESA GOA BUSINESS: VAB • • • • Increase in power generation with same steam consumption. Reductioninlossesandhenceincreaseefficiency. Power saving due to lower speed operation. Less failure and reduced power consumption. POWER BUSINESS: 2400 MW Jharsuguda • U#1 and 4 R and M and COH successfully completed. • U#1 Savings - SCC 20 gms/kWh and APC 0.4%. • U#4 Savings - SCC 12 gms/kWh and APC 0.4%. 1215 MW Jharsuguda • • • • • Reduction in forced outage time by 0.30% YOY. Reduction in Boiler tube leakage by 40%. Fan drive power reduction by Penthouse air seal. Padded insulation installed in Turbine to reduce radiation losses. 65 tonnes Biomass pallets induced to comply RPO obligation. 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: Business Oil & Gas Business Has technology been fully absorbed Year of import Technology imported Ravva Operations • • Micro-dense mud system: FY 2023 Protech centraliser: FY 2023 Cambay Operations • • • No Resin Sand Consolidation Shearable Gas Lift Valves Straddle Gas Lift Copper Division Iron Ore - Value Turbine upgradation in power plant to increase Addition Business the generation of PP-2 from 30 MW to 35 MW. No Power Business Aluminium Business No FY 2023 [PP] Yes 210 Yes Yes Yes Yes Yes VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 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 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 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 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 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 l w s r a u c i t r a p f o e r u s o l c s i D i i m u n m u A l r e w o P a o G a s e S r e p p o C s a G & l i O t i n U s s e n i s u B a d u g u s r a h J h r a g i j n a L 0 6 . 4 3 2 3 2 8 3 5 9 8 9 7 8 3 5 8 8 3 3 0 5 7 8 1 8 6 0 3 . 4 7 7 2 8 3 . 1 1 4 2 8 8 3 5 3 3 2 3 3 0 5 7 2 8 3 5 6 7 6 6 6 7 0 0 8 4 9 7 4 7 0 0 8 4 9 7 3 3 . 8 7 1 6 4 5 0 2 7 0 . 3 1 7 6 8 2 8 1 8 7 7 2 2 5 8 1 9 9 7 4 6 4 5 0 2 7 8 2 8 1 a k a t a n r a K a o G 4 . 0 2 . 9 A N A N . 0 3 4 4 5 1 . 9 9 8 6 3 . 3 A N A N i g n n M i i g n n M i r e w o P t n a P l ) R H W ( n o r I g P i i n o s i v i D i n o s i v i D e k o C t e M a k a t a n r a K a s s i r O e r a z a V t a r a u G j a o G i g n n M i i g n n M i e k o C t e M e k o C t e M i g n n M i r e w o P t n a P l ) R H W ( n o r I g P i i n o s i v i D i n o s i v i D e k o C t e M . 4 8 9 4 6 . 8 8 9 6 9 9 9 1 . 2 3 4 5 5 0 1 . 0 2 6 4 . 5 1 8 3 2 7 1 2 5 4 5 . . 0 0 9 2 2 2 . 5 2 1 9 6 3 . 4 6 1 3 3 1 8 1 . 4 7 9 1 1 9 . 6 1 8 7 3 3 8 . 9 2 0 5 6 7 9 . 0 0 7 1 7 0 0 3 . 0 0 7 2 5 7 8 4 3 . 0 0 . 4 A N A N 5 . 4 6 7 8 3 4 . 9 7 9 6 8 . 0 6 . 0 0 0 . 0 A N . 1 6 1 6 . 0 4 . 0 2 . 9 1 7 . 3 3 0 3 3 7 0 1 . 5 . 0 5 8 . 5 0 8 8 2 0 9 9 0 0 . 0 0 0 . 0 6 3 1 . . 1 1 5 . 9 A N A N 2 1 . 4 . 5 A N A N 4 . 2 5 . 6 A N A N . 9 9 9 7 2 5 3 . 7 7 0 6 1 8 . 0 6 6 . 0 2 0 . 0 A N 6 3 . 0 A N 3 3 . 5 7 2 . 6 8 9 . 5 8 9 . 5 . 4 7 4 6 7 . 4 7 4 6 7 0 0 . 0 5 9 7 2 4 0 0 . 3 8 6 1 5 4 0 . 4 1 6 . 0 0 4 . 4 4 . 7 1 0 6 1 8 . 9 7 1 . 4 5 1 9 2 2 4 . 3 2 7 4 . 7 4 . 4 5 8 7 . 3 5 A N 0 . 0 0 . 0 . 9 0 1 - 3 . 2 1 . 3 1 1 0 . 0 A N A N 6 . 0 8 . 4 2 - 2 6 . 8 2 A N 0 0 3 . 2 0 7 3 4 5 6 5 . 9 3 1 3 4 9 3 . 2 9 1 2 0 . 4 4 8 8 1 5 . 6 0 . 6 7 5 . 4 0 7 3 6 2 8 . 3 2 2 0 8 . 2 4 4 9 3 1 . 0 0 7 6 1 9 2 1 1 3 1 4 . 0 3 . 9 4 A N A N A N 2 4 . 5 7 2 . 4 7 8 6 7 . 1 4 . 6 0 1 3 2 . 8 1 . 0 7 2 9 0 9 4 . 4 9 2 7 6 0 5 . 6 1 2 7 0 0 . 6 6 9 1 9 6 9 2 1 5 2 1 4 2 1 5 8 3 8 7 6 . 5 7 8 . 2 8 1 7 7 4 8 4 8 4 8 . 8 2 1 9 1 3 1 1 . 3 8 . 0 7 7 5 . 3 1 1 9 . 8 7 . 0 2 7 9 5 1 . 9 1 0 2 7 1 A N A N A N A N A N A N A N A N A N A N A N A N . 3 1 6 6 3 8 9 2 6 1 9 0 6 8 3 3 4 1 1 1 7 5 7 9 4 3 . 0 8 9 1 1 9 7 6 8 0 2 3 6 1 9 0 6 8 3 3 4 1 A N . 0 7 5 0 2 5 4 9 . 8 1 6 6 . 5 1 8 9 2 1 8 . 2 7 7 4 9 1 3 6 1 6 4 . 4 7 5 5 0 3 8 9 . 3 7 4 8 2 8 2 4 4 2 6 2 9 1 6 6 6 1 6 4 A N A N l i N A N A N 6 5 9 9 . 5 7 6 . 4 7 7 6 L I N L I N L I N A 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 l i N A N A N 8 . 2 0 . 0 5 . 5 8 L I N L I N L I N A 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 l i N A N A N 4 . 6 2 2 . 0 8 . 9 7 3 . 8 6 5 . 0 8 . 5 7 A 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 l i N A N A N l i N A N A N L I N L I N L I N A 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 A N A N A N A N A N A N 7 8 . 9 9 7 4 . 3 8 1 9 0 . 0 8 2 6 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 A N A N A N A N A N A N A N A N l i N A N A N . 6 1 1 . 1 0 0 0 1 L I N L I N L I N A 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 l i N A N A N 4 3 3 0 . 3 . 1 1 9 L I N L I N L I N A 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 l i N A N A N 2 . 2 3 . 9 0 7 3 9 4 3 l i N A N A N 3 . 5 . 1 0 9 0 . 2 5 1 . 5 1 0 1 L I N L I N L I N A 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 L I N L I N L I N A 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 l i N A N A N 8 . 6 8 . 9 0 9 9 4 . 2 8 . 7 0 4 . 5 8 A 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 l i N A N A N l i N A N A N L I N L I N L I N A 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 4 0 0 3 3 8 . 2 1 . 1 7 2 4 1 4 . 6 2 7 1 0 . . 8 7 2 6 8 5 1 2 . 3 2 . 2 5 . 0 9 1 3 1 4 0 3 . 2 3 5 2 . 0 . 4 1 8 7 2 6 1 3 . 8 6 . 8 5 1 4 . 2 3 6 2 7 6 . . 4 1 8 8 3 5 6 8 . 8 1 8 4 2 3 . 2 2 . 9 1 4 3 7 4 . 4 3 8 4 . 6 4 2 8 . 8 2 5 6 5 0 . 6 1 4 7 . 0 9 7 6 4 4 8 . 6 3 4 1 4 . 4 1 2 . 4 9 8 2 . 4 5 0 . 8 9 . 7 9 9 3 8 0 . 4 8 2 8 8 . 3 0 1 8 8 . 3 0 1 4 4 . 8 4 8 3 0 9 . 6 4 3 7 2 e r o r c ` H W M h W k / ` H W M , t i n U / ` , t i n U / s m g t i n U / t i L , H W M / ` h W k / ` e r o r c ` t i L / ` L K e r o r c ` t i L / ` L K e r o r c ` g K / ` T M e r o r c ` g K / ` T M e r o r c ` T M 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 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 ) 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 n o i t a r e n e g n w O l e u f f o t i n u r e p t i n U 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 i D 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 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 K r e p t s o C e g a r e v A ) G N L ( y t i t n a u Q t n u o m A l a t o T 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 o r c ` g K / ` T M e r o r c ` T M l a o C / e t t e u q i r B l a r u t a N g K r e p t s o C e g a r e v A ) G N L ( y t i t n a u Q t n u o m A l a t o T t n u o m A l a t o T y t i t n a u Q ` T M r e p t s o C e g a r e v A ` 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 N L / . G P . . L 211 . 3 5 7 0 9 3 1 . 5 7 6 5 7 3 1 8 2 . 8 9 2 . 5 7 6 1 3 8 3 . 8 1 7 2 7 1 . 0 8 . 3 9 . 5 7 4 9 3 5 . 3 8 2 . 5 9 1 5 2 9 4 7 7 . 4 3 . 0 7 . 8 7 3 3 1 0 1 3 . 3 5 7 9 . 2 6 . 8 8 a d u g u s r a h J h r a g i j n a L . 5 7 1 2 6 2 . 0 6 . 0 7 . 7 6 2 2 8 2 . 0 . 1 2 7 i i m u n m u A l 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 A N A N A 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 A N A 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 A N A 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 A N A 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 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 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 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 A N A 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 A N A 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 A N A 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 A N A N A N A N 0 6 2 . 0 2 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 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 A N A N A N A N 6 6 . 0 2 0 . 0 3 6 . 0 3 0 . 0 2 0 0 0 . 0 2 0 0 0 . 0 8 9 0 . 0 2 8 0 . 0 0 2 . 5 4 4 6 2 1 . 6 1 7 6 7 4 5 1 . 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 f o 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 / d o R r e p p o C s u o u n i t n o C 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 m a e t S r o f l a o C y t i c i r t c e l E i a n m u l A e r O - n o r I y t i c i r t c e l E l i O e c a n r u F l e s e D i T M / g K n o t a n i c l a C r o f l i O e c n a n r u F l a t e M t o H T M / h W k r o f C A l a t o T ( y t i c i r t c e l E y r a l l i x u a d n a s i s y l o r t c e l e ) y g r e n e ) s d o r y o l l a g n i d u l c n i ( t e l l i B 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 T M / h W k T M / h W k y t i c i r t c e l E l i O e c a n r u F y t i c i r t c e l E 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 l E l i O e c a n r u F s t o g n I t s a C W O S y t i c i r t c e l E t o g n i - T y t i c i r t c e l E t s a C W O S y t i c i r t c e l E r a B t s a C y o l l A y t i c i r t c e l E . 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 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 * i s h T * * . 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 * * * 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 2 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 2 2 0 2 3 2 0 2 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 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 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 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 t i n U s r a l u c i t r a P 212 a k a t a n r a K a o G i g n n M i i g n n M i r e w o P t n a P l ) R H W ( n o r I g P i i n o s i v i D i n o s i v i D e k o C t e M a k a t a n r a K a s s i r O e r a z a V t a r a u G j a o G i g n n M i i g n n M i e k o C t e M e k o C t e M i g n n M i r e w o P t n a P l ) R H W ( n o r I g P i i n o s i v i D i n o s i v i D e k o C t e M r e w o P a o G a s e S r e p p o C s a G & l i O t i n U s s e n i s u B VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT ANNEXURE B INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Annual Report on Corporate Social Responsibility Activities for FY 2023 1 Brief Outline on CSR Policy of the Company A. POLICY OBJECTIVE 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 multiplier for complementing efforts, resources and for building sustainable solutions; • our employees have the potential to contribute not just to our business, but also towards building strong communities. C. THEMATIC FOCUS AREAS Our programs focus on poverty alleviation programs, 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 and Education b) Women’s Empowerment c) Health Care d) Drinking Water and Sanitation e) Sustainable Agriculture and Animal Welfare f) Market-linked Skilling the Youth g) Environment Protection and Restoration • we can positively impact and contribute to the h) Sports and Culture 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 beneficialrelationshipswithourstakeholders, especially the communities we work with; • partnerships with Government, corporates and civil societies/community institutions, offer a strong i) Development of Community Infrastructure j) Participate in programs of national importance including but not limited to disaster mitigation, rescue, relief and rehabilitation TheCSRactivitiesarealignedtothespecifiedactivitiesin Schedule VII of the Companies Act, 2013. The above may be modifiedfromtimetotime,asperrecommendationsofthe CSR Committee of the Company. 2 Composition of CSR Committee Sl. No. 1 2 3 4 3 Name of Director Designation/Nature of Directorship Number of meetings of CSR Committee held during the year Number of meetings of CSR Committee attended during the year Akhilesh Joshi Chairperson, Independent Director Priya Agarwal Member, Non-Executive Director Upendra Kumar Sinha Member, Independent Director Padmini Sekhsaria Member, Independent Director 2 2 2 2 2 2 2 2 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 www.vedantalimited.com 213 Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule (3) of rule 8, if applicable. AsperGeneralCircularNo.14/2021dated25August2021issuedbytheMCAonFAQsonCSR,itisclarifiedthatweb- link to access the complete Impact Assessment Reports and providing executive summary of the Impact Assessment ReportsintheAnnualReportonCSR,shallbeconsideredassufficientcomplianceofRule8(3)(b)oftheCompanies (CSR Policy) Rules, 2014. Accordingly, an Executive Summary of Impact Assessment Reports of the applicable projects, is annexed as ‛Annexure B-1' and the complete Impact Assessment Reports of the applicable projects can be accessed at the web-link provided in the said annexure. (a) AveragenetprofitoftheCompanyaspersub-section(5)ofSection135(` crore): 5,621.00 (b) TwopercentofaveragenetprofitoftheCompanyasperSection135(5)(` crore): 112.00 (c) SurplusarisingoutoftheCSRprojectsorprogrammesoractivitiesofthepreviousfinancialyears:Nil (d) Amountrequiredtobesetoffforthefinancialyear,ifany(` crore): Nil (e) TotalCSRobligationforthefinancialyear(5b+5c-5d)(` crore): 112.00 (a) Amount spent on CSR Projects (both ongoing projects and other than ongoing projects) (` crore): 123.33 (b) Amount spent in Administrative Overheads (` crore): 1.55 (c) Amount spent on Impact Assessment, if applicable (` crore): 0.00 (d) Totalamountspentforthefinancialyear(6a+6b+6c)(` crore):124.88 (e) CSRamountspentorunspentforthefinancialyear: Total Amount Spent for the financial year (` crore) 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 Date of Transfer Name of the Fund Amount Date of Transfer 124.88 - NA NA NA NA Amount Unspent (` crore) (f) Excess amount for set off, if any (` crore): Sl. No. (i) (ii) Particular TwopercentofaveragenetprofitoftheCompanyasperSection135(5) Totalamountspentforthefinancialyear (iii) Excessamountspentforthefinancialyear[(ii)-(i)] (iv) SurplusarisingoutoftheCSRprojectsorprogrammesoractivitiesofthepreviousfinancialyears,ifany (v) Amountavailableforsetoffinsucceedingfinancialyears[(iii)-(iv)] Amount (` crore) 112.00 124.88 12.88 0.00 12.88 4 5 6 214 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 7 8 9 (a) DetailsofUnspentCSRamountfortheprecedingthreefinancialyears:Nil Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No 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 Sd/- Akhilesh Joshi Whole-timeDirectorandChiefExecutiveOfficer Non-Executive Independent Director (Chairman - CSR Committee) 215 n o i t a r t s i g e R r e b m u n R S C 9 5 2 0 0 0 0 0 R S C - 3 3 8 9 2 0 0 0 R S C S E M A D 1 2 4 1 0 0 0 0 R S C A R A H D 6 5 1 3 0 0 0 0 R S C t n e m t f i l p U r o f y t e c o S i 1 2 4 1 0 0 0 0 R S C y m o n o c E l a r u R f o ) " E R U S " ( A R A H D F I A B t c e r i D o N s e Y o N o N o N o N 4 9 8 0 0 0 0 0 R S C a l i h a M i l a h S i t k a h S o N n a h t g n a S 7 5 6 0 0 0 0 0 R S C s d e e 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 o N o N 4 1 9 1 0 0 0 0 R S C a l i h a M a n a h c a r a v a N o N t s u r T s a k V i 4 9 8 0 0 0 0 0 R S C a l i h a M i l a h S i t k a h S 1 2 4 1 0 0 0 0 R S C n a h t g n a S A R A H D 2 4 8 9 0 0 0 0 R S C I C P - e g e l l o C l i a c d e M . t v o G o N o N s e Y o N - - - - - - - - - , . 0 0 0 0 0 6 8 7 4 1 , , . 0 0 0 0 0 3 5 7 - , , . 0 0 0 0 0 5 9 3 5 , , . 0 0 0 0 0 2 7 7 1 , , . 0 0 0 0 0 5 0 3 7 , , , . 0 0 0 0 0 8 9 8 0 2 , , . 0 0 0 0 0 5 9 2 8 , , - , . 0 0 0 0 0 0 0 0 5 1 , , . 0 0 0 0 0 0 0 0 5 , , . 0 0 0 0 0 0 0 0 3 , , . 0 0 0 0 0 0 0 0 8 , , , . 0 0 0 0 0 0 0 5 0 2 , , , . 0 0 0 0 0 0 0 0 0 1 , , . 0 0 0 0 0 7 6 7 7 , , . 0 0 0 0 0 0 0 0 8 , , , . 0 0 0 0 0 9 2 1 0 2 , , , . 0 0 0 0 0 0 0 5 9 1 , , , . 0 0 0 0 0 8 7 3 1 1 , , , . 0 0 0 0 0 2 4 8 0 1 , , . 0 0 0 0 0 2 2 3 6 , , , . 0 0 0 0 0 0 0 0 0 1 , , . 0 0 0 0 0 0 0 2 7 , , , . 0 0 0 0 0 6 6 9 4 1 , , . 0 0 0 0 0 0 0 0 6 , , , . 0 0 0 0 0 0 0 0 0 1 , , . 0 0 0 0 0 8 8 2 3 , , . 0 0 0 0 0 0 0 5 6 , , , 0 0 . 0 0 0 4 2 4 7 2 1 , , , 0 0 . 0 0 0 6 6 6 3 3 1 , , 6 3 6 3 4 2 4 2 6 3 4 2 4 2 6 3 4 2 4 2 2 1 2 1 2 1 2 1 , n a t a P , r a g a n m a J , a h t n a K , r a g a n a r d n e r u S , t o k j a R t a r u S l e r o a J d n a 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 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 y t i l i i b a n a t s u s 3 - e s a h P r e m r a B n a h t s a a R j s e Y e f a s e b a l l i a v a g n k a m i ) i ( j t c e o r p l l e w e r o B r e t a w g n k n i r d i s a n a B , d a b a d e m h A t a r a u G j s e Y n o i t a c u d e g n i t o m o r p ) i i ( 2 - e s a h P l a w a j j U j t c e o r P J G n a t a P d n a a k r a w D , a h t n a k s a n a B t a r a u G j , d a b a d e m h A d n a a h t n a k s a n a B , r a g a n m a J t n e m p o e v e d l l a r u r s t c e o r p j , t a r u S , d a b a d e m h A t a r a u G j s e Y n o i t a c u d e g n i t o m o r p ) i i ( ) x ( l k s e d p e H y t i n u m m o C l e r o a J d n a 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 g n i r u s n e ) v i ( d n a t n e m p o e v e D y r i a D l y t i l i i b a n a t s u s y r d n a b s u H l a m n A i J R r o f e r o a J l , r e m r a B 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 ( n a V h t l a e H e l i b o M l e r o a J d n a r e m r a B n a h t s a a R j s e Y i g n c n a h n e t n e m y o p m e l ) i i ( n i n e m o w g n i r e w o p m e s m a r g o r P g n n a r T i i l l i k S r e m r a B 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 ( - r o t c o D t s i l i a c e p S s l l i k s l a n o i t a c o v r e m r a B C E C r e m r a B , l a t i p s o H t c i r t s D i n o i t a t i n a S l a t i p s o H d n a n e e r G r e m r a B n a e C - l r e m r a B 8 9 , m a g m a r i V , a h t n a k s a n a B n a h t s a a R j s t c e o r p j , e r o a J l , r e m r a B , t a r a u G j s e Y t n e m p o e v e d l l a r u r ) x ( s n o i t n e v r e t n I l e v e l o r c M i 0 1 t o k j a R , i a k u s n T i , t a h g a o G l , t a h r o J , n a t a P , r a g a n m a J m a s s A d n a l e r o a J d n a r e m r a B n a h t s a a R j s e Y e f a s e b a l l i a v a g n k a m i ) i ( l s t n a P O R 4 2 1 f o M & O 1 1 r e m r a B n a h t s a a R j r e m r a B n a h t s a a R j i a d n I n a P i a d n I n a P s e Y s e Y o N e r a c h t l a e h g n i t o m o r p ) i ( d r a W t s i l i a c e p S r e p u S d n a s t r o p s g n i t o m o r p ) i i v ( g n a y v i D j t c e o r P s t r o p s g n i t o m o r p ) i i v ( a r f n I s t r o p S o t t r o p p u S 2 1 3 1 4 1 i s t r o p s c p m y l a r a p A L A T O T B U S s a G & l i O r e t a w g n k n i r d i l e r o a J d n a r e m r a B n a h t s a a R j s e Y , r e g n u h g n i t a c d a r e i ) i ( r a h G d n a N 7 , l n o i t i r t u n a m d n a y t r e v o p e r a c h t l a e h 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 ( , y t i l a u q e r e d n e g g n i t o m o r p ) i i i ( 1 . l S . o N 1 2 3 4 5 6 - 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 e m a N ) o N / s e Y ( t c e r i D r e p s a t c e j o r p ) 6 ( 5 3 1 n o i t c e S ) ` ( - s n o i t a t n e m e l p m I e h t r o f t n u o c c A f o e d o M t n u o m A o t d e r r e f s n a r t R S C t n e p s n U S A G & L I O ) ` ( ) ` ( t n e p s t n u o m A t n u o m A t n e r r u c e h t n i r a e y l i a c n a n fi t c e j o r p e h t r o f d e t a c o l l a t c e j o r P n o i t a r u d ) s h t n o M ( t c e j o r p e h t f o n o i t a c o L t c i r t s D i e t a t S l a c o L / s e Y ( a e r a ) o N t c A e h t f o t s i l e h t m o r f m e t I o t I I V e l u d e h c S n i s e i t i v i t c a t c e j o r P e h t f o e m a N 1 1 0 1 9 8 7 6 5 4 3 2 s t c e j o r P g n o g n O - i ) a ( 6 e l b a T - s e i t i v i t c A R S C n o t r o p e R 216 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS n o i t a r t s i g e R r e b m u n R S 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 e m a N ) o N / s e Y ( t c e r i D r e p s a t c e j o r p ) 6 ( 5 3 1 n o i t c e S ) ` ( - s n o i t a t n e m e l p m I e h t r o f t n u o c c A f o e d o M t n u o m A o t d e r r e f s n a r t R S C t n e p s n U E R O N O R I ) ` ( ) ` ( t n e p s t n u o m A t n u o m A t n e r r u c e h t n i r a e y l i a c n a n fi t c e j o r p e h t r o f d e t a c o l l a t c e j o r P n o i t a r u d ) s h t n o M ( t c e j o r p e h t f o n o i t a c o L t c i r t s D i e t a t S l a c o L / s e Y ( a e r a ) o N t c A e h t f o t s i l e h t m o r f m e t I o t I I V e l u d e h c S n i s e i t i v i t c a t c e j o r P e h t f o e m a N 1 1 0 1 9 8 7 6 5 4 3 2 1 . l S . o N 9 5 2 0 0 0 0 0 R S C F I A B o N 5 0 2 1 0 0 0 0 R S C I A R A N A V o N 6 4 0 5 0 0 0 0 R S C y t i n u m m o C a s e S t n e m p o e v e D l n o i t a d n u o F 6 4 0 5 0 0 0 0 R S C y t i n u m m o C a s e S 3 5 1 1 0 0 0 0 R S C t n e m p o e v e D l n o i t a d n u o F b o m a v e S - - s e Y o N o N o N 7 5 4 2 0 0 0 R S C n a h t u r a n u P o N - A N A N - A N - d e s i l a n fi t o N - i a d n I n a c i r e m A n o i t a d n u o F - o N s e Y o N s e Y - s e Y A N o N - - - - - - - - - - - . 0 0 9 5 2 6 0 4 6 , , . 5 3 9 0 5 4 9 7 5 , , . 0 0 2 6 2 0 2 1 2 , , , . 3 8 1 6 1 0 9 5 7 3 , , , . 7 5 8 2 9 6 4 6 5 1 , , . 2 6 0 1 6 2 4 3 5 , , , . 0 0 0 0 0 0 0 0 5 1 , , , . 0 0 0 0 0 0 0 6 0 1 , , . 0 0 0 0 0 0 0 3 2 , , , . 0 0 0 0 0 5 5 9 3 4 , , , . 0 0 0 0 0 0 5 2 8 2 , , . 0 0 0 0 0 0 0 8 6 , , 8 4 8 4 8 4 8 4 8 4 8 4 a g r u d a r t i h C a k a t a n r a K s e Y t n e m e c n a h n e d o o h i l e v i l ) i i ( d o o h i l e v i L e v i t a n r e t l A 5 1 s t c e o r p j j t c e o r P s e i t i n u t r o p p O , y t i l a u q e r e d n e g g n i t o m o r p ) i i i ( 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 ) v i ( y t i l i i b a n a t s u s a o G h t r o N a o G s e Y t n e m e c n a h n e d o o h i l e v i l ) i i ( d e t a r g e t n I - n a m r i N m a r G 6 1 s t c e o r p j l t n e m p o e v e d e g a l l i v a g r u d a r t i h C a k a t a n r a K d n a a o G h t r o N d n a a o G s e Y n o i t a c u d e g n i t o m o r p ) i i ( 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 ) v i ( y t i l i i b a n a t s u s , y t i l a u q e r e d n e g g n i t o m o r p ) i i i ( l i p h s r a o h c S a h s r a k t U 7 1 m a r g o r p a o G h t u o S , a o G h t r o N a o G s e Y s t r o p s g n i t o m o r P ) i i v ( y m e d a c A l l a b t o o F a s e S 8 1 t s e W , a o G h t r o N , a o G s e Y e r a c 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 0 2 s l l i k s l a n o i t a c o v a o G h t r o N a o G s e Y i g n c n a h n e t n e m y o p m e l ) i i ( l o o h c S l i a c n h c e T a s e S 9 1 - . 0 0 0 0 0 0 0 2 , , - - . 3 7 1 9 9 0 1 2 3 , , . 0 0 0 0 0 0 6 3 3 , , . 0 0 6 1 0 8 3 3 , , , . 9 8 3 8 5 0 8 5 5 1 , , . 0 0 0 0 0 0 0 5 , , , . 0 0 0 9 6 2 0 6 1 1 , , . 0 0 6 0 9 1 9 , . 0 0 0 0 0 0 0 0 1 , , . 1 2 1 8 7 9 6 0 3 , , . 0 0 0 0 0 0 0 1 3 , , 5 3 6 2 1 2 1 2 1 2 1 2 1 , 7 3 . 1 3 7 0 0 9 2 7 , , , 0 0 . 0 0 0 5 0 9 6 0 1 , , A D U G U S R A H J - M U N M U L A I I m u h b h g n S i d n a h k r a h J e v i t n e v e r p g n d u c n l i i h t l a e H e l i b o M d n a r e t n e C a d u g u s r a h J 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 ( d n a t i n U h t l a e H e l i b o M 1 2 e r a c h t l a e h B L A T O T B U S e r O n o r I t i n u e v i t n e v e r p g n d u c n l i i i t u r g a J t c e o r P j a d u g u s r a h J 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 ( a r t i M y a h s k N i 2 2 e r a c h t l a e h e v i t n e v e r p g n d u c n i l i a d u g u s r a h J 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 ( r o f h t l a e H l a t n e M 3 2 e r a c h t l a e h e r a c h t l a e h e v i t n e v e r p g n d u c n i l i s r e n o s i r P a d u g u s r a h J a h s d O i s e Y i g n c n a h n e t n e m y o p m e l ) i i ( t n e m p o e v e D l l l i k S 4 2 a d u g u s r a h J 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 ( n o i t a t i n a S d n a r e t a W 5 2 y t i l i i b a n a t s u s s e i t i v i t c a 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 g n i t o m o r p ) i i ( r a h G d n a N 6 2 s l l i k s n o i t a c o v m a r g o r P 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 g n i t o m o r p ) i i ( l i p h s r a o h c S V A D a t n a d e V m a r g o r P 7 2 217 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 o N 7 5 4 2 0 0 0 0 R S C i p h s r u e n e r p e r t n E e t u t i t s n I t n e m p o e v e D l i a d n I f o n o i t a d n u o F - - - l i e b a n a t s u S k a h t r a S - - s e Y s e Y o N o N - - - - - d e s i l a n fi t o N - d e s i l a n fi t o N o N d e s i l a n fi t o N o N d e s i l a n fi t o N o N 0 5 6 0 0 0 0 0 R S C l y r a t n u o V n a h t u r a n u P n o i t a s n a g r O i 3 5 4 0 1 0 0 0 R S C i h s o t n a S a a M n o i t a d n u o F n a y l a k n a J 1 6 5 2 0 0 0 0 R S C 2 4 6 1 0 0 0 0 R S C i t k a h s a h a M n o i t a d n u o F a y j a h a s n a J - - s e Y o N s e Y o N o N o N o N - - - - - - - - - - - . 0 8 7 5 9 8 4 6 , , . 0 3 4 4 7 9 6 1 , , . 6 1 1 1 2 5 3 2 , , . 0 0 0 0 0 0 5 6 , , . 0 0 0 0 0 2 7 1 , , . 0 0 0 0 0 6 1 2 , , . 1 0 5 9 5 9 8 1 2 , , . 0 0 0 0 0 0 5 1 2 , , - - - - . 0 8 6 9 7 3 9 7 1 , , . 0 0 0 0 0 0 0 0 2 , , . 6 5 9 3 1 9 5 9 2 , , . 0 0 0 0 0 0 0 0 3 , , - - . 4 8 4 8 5 1 6 6 5 , , . 0 0 0 0 0 0 5 4 5 , , 2 1 2 1 4 2 2 1 6 3 4 2 2 1 2 1 2 1 2 1 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 g n i t o m o r p ) i i ( r e t u p m o C a t n a d e V 8 2 l t n e m y o p m e g n d u c n l i i e m m a r g o r P y c a r e t i L 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 g n i t o m o r p ) i i ( s l l i k s n o i t a c o v g n c n a h n e i i i e c n e c S - i n M a t n a d e V 9 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 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 0 3 e r t n e C n i r e h c a e T : s e v i t a i t i n I l s o o h c s 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 g n i t o m o r p ) i i ( l i a t i g D a t n a d e V 1 3 h a r g a y d V i : n o i t a c u d E a d u g u s r a h J a h s d O i s e Y r e d n e g 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 2 3 g n i r e w o p m e , y t i l a u q e , p o - o C i l m x a a h b u S n e m o w o r c M i , g n d i l i u B y t i c a p a C s e s i r p r e t n E a d u g u s r a h J a h s d O i s e Y l t n e m y o p m e g n i t o m o r p ) i i ( y r a t i n a S f o t n e m h s i l b a t s E 3 3 d o o h i l e v i l d n a . . . s l l i k s n o i t a c o v g n c n a h n e i j . s t c e o r p t n e m e c n a h n e g n i r u t c a f u n a M n k p a N i t i n U a d u g u s r a h J a h s d O i s e Y l t n e m y o p m e g n i t o m o r p ) i i ( m r o f i n U t e k c a J y t e f a S 4 3 d o o h i l e v i l d n a . . . s l l i k s n o i t a c o v g n c n a h n e i j . s t c e o r p t n e m e c n a h n e i g n h c t i t S a d u g u s r a h J 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 ( j t c e o r P : y t i v i t c A m r a F 5 3 y t i l i i b a n a t s u s d n a i h h d i r m a S a k i v e e J e v i t a i t i n i r e h t o a d u g u s r a h J 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 ( i t i n U g n m r a F y r i a D 6 3 y t i l i i b a n a t s u s a d u g u s r a h J 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 ( n o i t a t n a P l 7 3 , 0 3 . 8 0 3 9 4 1 6 3 , , , 0 0 . 0 9 6 0 0 2 3 3 , , H R A G I J N A L - M U N M U L A I I 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 c n a a b l C L A T O T B U S a d u g u s r a h J - m u n m u A i i l , . 9 1 9 1 8 6 7 3 1 4 , , , . 0 0 0 0 0 0 0 0 5 3 , , . 0 0 5 3 6 4 6 5 1 , , . 0 0 0 0 0 0 0 0 2 , , . 0 0 1 4 1 1 8 0 2 , , . 0 4 5 7 3 8 4 2 , , . 4 3 7 5 2 2 4 2 , , . 0 0 0 0 0 0 0 5 4 , , - . 0 0 0 0 0 0 0 3 3 , , 6 3 6 3 6 3 6 3 6 3 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 a t i p s o H a t n a d e V 8 3 e v i t n e v e r p g n d u c n i l i 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 ( , n a y l a K n a J i h s o t n a S a a M 9 3 e r a c h t l a e h e r a c h t l a e h e v i t n e v e r p g n d u c n i l i u r d n u k a k n a B i d n a h a a K l a h s d O i s e Y , y t i l a u q e r e d n e g 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 0 4 n e m o w g n i r e w o p m e 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 ( e r a C d l i h C a t n a d e V 1 4 i d n a h a a K l a h s d O i s e y n e r d l i i i h c o t g n n a r t g n d i v o r p i n o i t o m o r P s t r o p S 2 4 r e t n e C e t a r a k d n a y r e h c r a n i ) a r d n e K a d e e r K ( n o i t a r t s i g e R r e b m u n R S 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 e m a N ) o N / s e Y ( t c e r i D r e p s a t c e j o r p ) 6 ( 5 3 1 n o i t c e S ) ` ( - s n o i t a t n e m e l p m I e h t r o f t n u o c c A f o e d o M t n u o m A o t d e r r e f s n a r t R S C t n e p s n U ) ` ( ) ` ( t n e p s t n u o m A t n u o m A t n e r r u c e h t n i r a e y l i a c n a n fi t c e j o r p e h t r o f d e t a c o l l a t c e j o r P n o i t a r u d ) s h t n o M ( t c e j o r p e h t f o n o i t a c o L t c i r t s D i e t a t S l a c o L / s e Y ( a e r a ) o N t c A e h t f o t s i l e h t m o r f m e t I o t I I V e l u d e h c S n i s e i t i v i t c a t c e j o r P e h t f o e m a N 1 1 0 1 9 8 7 6 5 4 3 2 1 . l S . o N 218 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 n o i t a r t s i g e R r e b m u n R S 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 e m a N ) o N / s e Y ( t c e r i D r e p s a t c e j o r p ) 6 ( 5 3 1 n o i t c e S ) ` ( - s n o i t a t n e m e l p m I e h t r o f t n u o c c A f o e d o M t n u o m A o t d e r r e f s n a r t R S C t n e p s n U ) ` ( ) ` ( t n e p s t n u o m A t n u o m A t n e r r u c e h t n i r a e y l i a c n a n fi t c e j o r p e h t r o f d e t a c o l l a t c e j o r P n o i t a r u d ) s h t n o M ( t c e j o r p e h t f o n o i t a c o L t c i r t s D i e t a t S l a c o L / s e Y ( a e r a ) o N 1 1 0 1 9 8 7 6 5 4 3 2 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 1 6 5 2 0 0 0 0 R S C i t k a h s a h a M n o i t a d n u o F - - - - - - - - - - - - - / t s u r T l i a c o S i l s a u h T t n e m r e w o p m E n e m o W d n a n o i t a c u d E l l e B m a g a y a a h D / y t e c o S i ) t s u r T e r a f l e W l i a c o S o N o N s e Y s e Y s e Y s e Y s e Y s e Y s e Y o N - - s e Y - - - - - - - - - - . 0 0 3 2 0 2 0 4 2 , , . 6 8 8 5 4 0 7 7 8 , , . 0 0 2 0 2 1 1 6 , , . 0 0 0 0 0 6 9 , , 9 7 . 1 1 9 6 9 2 7 5 , , . 0 6 9 8 2 2 6 4 4 , , , 0 5 4 1 5 1 , . 0 0 0 0 0 0 0 3 6 , , , . 0 0 0 0 0 0 5 3 0 6 , , . 0 0 0 0 0 0 5 6 5 , , 6 3 6 3 6 3 , 0 0 . 0 0 0 0 0 1 7 1 1 , , R E P P O C , . 0 0 0 0 0 0 0 0 0 2 , , . 0 0 0 0 0 0 0 2 1 , , . 9 5 2 5 3 9 8 9 8 , , . 0 0 0 0 0 0 0 8 9 , , . 0 0 4 1 7 5 3 1 7 , , . 0 0 0 0 0 0 0 0 6 , , . 0 0 6 2 1 6 8 4 4 , , . 0 0 0 0 0 0 0 0 6 , , , . 0 0 0 5 3 9 1 1 0 2 , , , . 0 0 0 0 4 8 9 9 8 1 2 , , . 0 0 0 0 8 9 4 9 , , . 0 0 6 5 3 1 1 8 6 , , . 0 0 0 0 0 0 0 2 1 , , . 0 0 0 0 0 0 0 3 6 , , , 7 3 8 5 8 1 3 , . 0 0 0 0 0 0 0 3 7 , , , 9 1 . 5 7 2 7 8 3 6 5 , , , 0 0 . 0 0 4 8 9 7 6 7 2 , , , 5 6 . 6 2 2 8 5 1 0 5 3 , , , 0 0 . 0 9 0 0 7 6 7 6 6 , , 8 4 8 4 8 4 8 4 8 4 8 4 8 4 8 4 8 4 8 4 i d n a h a a K l a h s d O i s e y o t g n n a r t i i i g n n a r T i l l i k S a t n a d e V 3 4 r i e h t e c n a h n e o t h t u o y l a r u r t e s l l i k s i d n a h a a K l a h s d O i s e Y t n e m e c n a h n e d o o h i l e v i l ) i i ( m r a f - n o N d n a m r a F 4 4 s t c e o r p j d o o h i l e v i l i d n a h a a K l a h s d O i s e Y d n a t r a l a c o l g n i t o m o r p ) i i v ( d n a l a b i r T a t n a d e V 5 4 e r u t l u c t r A a r k o h D D L A T O T B U S h r a g i j n a L - m u n m u A l i i i d u k u h t o o h T i d u k u h t o o h T i d u k u h t o o h T i d u k u h t o o h T i d u k u h t o o h T i d u k u h t o o h T l i m a T u d a N l i m a T u d a N l i m a T u d a N l i m a T u d a N l i m a T u d a N l i m a T u d a N s e Y n o i t a c u d e g n i t o m o r p ) i i ( g n e b i l l e W s n e r d ' l i h C 6 4 n o i t a c u d E s e Y s e Y l t n e m p o e v e D a r f n I t e s s A y t i n u m m o C 7 4 n o i t a e r C f e i l e R r e t s a s D i f e i l e R r e t s a s D i 8 4 s e Y e r a c 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 4 e v i t n e v e r p g n d u c n l i i e v i t n e v e r p g n d u c n l i i d n a e r a c h t l a e h n o i t a t i n a s y t i l i i b a n a t s u s 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 ( i d u k u h t o o h T i a m u s a P 0 5 s e Y e r a c h t l a e h g n i t o m o r p ) i ( s p m a C h t l a e H 1 5 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 ( e v i t a i t i n I g n i l l i k S 2 5 e r a c h t l a e h l t n e m y o p m e g n d u c n l i i i d u k u h t o o h T u d a n l i m a T i d u k u h t o o h T l i m a T u d a N s e Y s e Y g n o m a s l l i k s n o i t a c o v 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 g n i t o m o r p ) i i i ( n e m o w s l l i k s n o i t a c o v g n c n a h n e i s e i t i v i t c A s t r o p S e r u t l u C d n a s t r o p S i g n c n a h n e t n e m y o p m e l ) i i ( e r t n e C e c r u o s e R n a m o W 3 5 4 5 i d u k u h t o o h T l i m a T u d a N s e Y l t n e m p o e v e D y t i n u m m o C s e v i t a i t i n I w e N 5 5 E L A T O T B U S s e i t i v i t c A ) E + D + C + B + A ( L A T O T r e p p o C 219 l l i i k s g n d i v o r p t c A e h t f o t s i l e h t m o r f m e t I o t I I V e l u d e h c S n i s e i t i v i t c a t c e j o r P e h t f o e m a N 1 . l S . o N Report on CSR Activities - Table 6(a) - Other than Ongoing Projects 1 2 3 Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act 4 Local area (Yes/ No) 5 6 7 8 Location of the project State District OIL & GAS Amount spent for the project (in `) Mode of implementation - Direct (Yes/No) 1 Nirogi Rajasthan (i) promoting health care including preventive health care and sanitation Yes Rajasthan Barmer 43,03,000.00 No Mode of implementation - Through implementing agency Name CSR Registration number Dhara Sansthan CSR00001421 CEDRA CSR00003663 No Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No Yes Yes Yes 2 3 4 5 6 7 8 9 Micro level Interventions (x) rural development Yes Gujarat Surat-Suvali 13,35,000.00 projects CEC-Infra Work (ii) employment enhancing Yes Rajasthan Barmer 24,92,000.00 vocational skills Cairn Centre of Excellence Barmer Cairn Centre Of Excellence Barmer (ii) employment enhancing Yes Rajasthan Jodhpur 37,82,000.00 vocational skills (ii) employment enhancing Yes Rajasthan Jodhpur 1,01,000.00 vocational skills CHC-Kawas (i) promoting health care Yes Rajasthan Barmer 64,90,000.00 Sonography Machine (i) promoting health care Yes Rajasthan Barmer 37,95,000.00 Program Admin Program Admin Impact Study Program Admin 68,55,000.00 46,72,000.00 Yes Yes NA NA Rajasthan Rajasthan, Gujarat, Assam Yes Rajasthan Barmer, Jalore 10 COVID-19 Relief (i) promoting health care including preventive health care (xii) disaster management, including relief 11 Contribution to Anil Agarwal Foundation (AAF) 4,90,000.00 Yes NA 16,64,29,000.00 No Anil Agarwal Foundation Kisan Construction Company JVVNL CTO Kisan Construction Company Barmer Jan Sewa Samiti Direct KPMG Oil & Gas SUB TOTAL A 20,07,44,000.00 IRON ORE 12 COVID-19 relief (i) promoting health care including preventive health care Yes Goa, Karnataka, Maharashtra North Goa, Dharwad 4,13,606.86 Yes 13 Back to Farming (iv) ensuring environmental Yes Goa South Goa 64,640.00 sustainability 14 Women (iv) ensuring environmental Yes Goa North Goa 2,78,446.00 Empowerment sustainability 15 Project Vriddhi (ii) promoting education Yes 16 Rural Infra Projects (x) rural development Yes projects (ii) promoting education Yes 17 Computer Training Centres 18 Paediatric ICU Unit Goa, Karnataka Goa, Karnataka Goa, Karnataka North Goa, South Goa, Karnataka North Goa North Goa, Chitradurga 68,77,453.99 2,70,551.30 7,84,706.54 (i) promoting health care including preventive health care and sanitation Yes Karnataka Chitradurga 15,67,301.00 19 Drinking Water (i) making available safe Yes Supply drinking water 20 Health Camps (i) promoting health care including preventive health care Yes Goa, Karnataka Goa and Karnataka North Goa, Chitradurga North Goa, Chitradurga 15,51,402.14 4,97,135.92 - - - - - - - - 21 Contribution to Anil Agarwal Foundation (AAF) 22 Admin Expenses Iron Ore SUB TOTAL B 10,92,77,351.44 No Anil Agarwal Foundation 5,34,334.98 12,21,16,930.17 ALUMINIUM - JHARSUGUDA Social Infrastructure Projects (x) rural development Yes Odisha Jharsuguda 1,85,16,870.73 Yes projects State-of-the-Art Pathology and Diagnostic Centre (i) Promoting health care including preventive health care Yes Odisha Jharsuguda -1,52,021.72 - - 23 24 220 - - - - CSR00002129 - - - - - - - - - - - - - - - Vedanta Foundation CSR00001617 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 1 2 3 Sl. No. Name of the Project Item from the list of activities in Schedule VII to the Act 4 Local area (Yes/ No) 5 6 7 8 Location of the project State District Amount spent for the project (in `) Mode of implementation - Direct (Yes/No) 25 District Nutrition Care Support (i) promoting health care including preventive health care Yes Odisha Jharsuguda - 26 Disaster Relief - (xii) disaster management, Yes Odisha Jharsuguda 1,94,41,728.55 COVID-19 response including relief 27 Educational Initiatives: MO School (ii) promoting education Yes Odisha Jharsuguda 2,80,00,000.00 Yes Yes 28 Supporting Sports (vii) training to promote Yes Odisha Jharsuguda 19,66,841.00 No rural sports 29 30 Admin Expenses CSR Projects through AAF NA NA 31 Marathon Expenses NA Aluminium - Jharsuguda SUB TOTAL C Yes Odisha Jharsuguda 44,63,421.87 22,42,81,090.33 2,51,71,743.00 32,16,89,673.76 (iv) ensuring environmental Yes Odisha Kalahandi 3,20,800.00 Yes sustainability ALUMINIUM - LANJIGARH (iv) ensuring environmental Yes Odisha Dhenkanal 9,71,650.00 sustainability (i) promoting health care including preventive health care and sanitation (xii) Disaster management Yes Odisha Kalahandi 1,00,02,357.28 Community Asset Creation (x) rural development Yes Odisha Kalahandi 28,58,354.00 projects Scholarship (ii) promoting education Yes Yes Yes Yes Odisha Odisha Odisha Odisha Kalahandi Kalahandi Kalahandi Kalahandi 8,26,111.12 51,62,405.86 17,51,458.06 20,000.00 No No Yes Yes No No No 32 33 Vedanta Clean Energy Vedanta Medicinal Plantation 34 COVID-19 relief 35 36 37 38 39 Program Admin TB Mukht Bharat 40 Water and Sanitation Yes Odisha Kalahandi 22,892.78 Yes CSR Program CSR Admin (i) promoting health care including preventive health care and sanitation (i) promoting health care including preventive health care and sanitation 41 Women and (iii) promoting gender Yes - Children (“AAF") equality, empowering women (i) promoting health care including preventive health care and sanitation 42 Education (MO School) 43 Delhi Half Marathon (Run for zero hunger) (ii) promoting education Yes (i) Eradicating hunger Yes poverty and malnutrition - - Aluminium - Lanjigarh SUB TOTAL D 44 Sports (Corp Allocation) - - - 12,88,35,407.16 Yes 1,21,92,000.00 1,34,63,999.34 Yes Yes 17,64,27,435.60 COPPER 30,71,968 45 Program and Admin (i) Program and Admin Yes Tamilnadu Thoothukudi 19,13,836.15 Yes Copper (ii) Audit Fee SUB TOTAL E 46 Sports Promotion (VDHM) (i) Eradicating hunger poverty and Malnutrition (vii) Promoting sports Corporate SUB TOTAL F TOTAL (A+B+C+D+E+F) 49,85,804.15 CORPORATE 7,27,04,537.00 Yes 7,27,04,537.00 89,86,68,380.68 Mode of implementation - Through implementing agency Name - - - CSR Registration number - - - CSR00006927 Social Education for Women's Awareness NA - - - Punaruthan Voluntary Organisation CSR00000650 NA NA NA NA NA NA NA NA Punaruthan Voluntary Organisation CSR00000650 - - - - - - - - - - - - 221 ANNEXURE B-1 Executive Summary of Impact Assessment Reports As per the revised CSR Rules issued by MCA in January 2021, every Company having an average CSR obligation of `10croreormoreinthethreeimmediatelyprecedingfinancialyears,shallundertakeImpactAssessment,throughan independent agency, for its CSR projects having outlays of `1 crore or more, and which have been completed not less than one year before undertaking the impact study. In line with the above requirement, a brief outline of the projects for which Impact Assessment was carried out and the executive summary of the Impact Assessment Reports are given below: Oil & Gas A. Thematic Area – Children Well-Being and Education 1. Project Name: Nand Ghar Project Brief: The flagship project of Vedanta-Cairn aims tostrengthentheefficacyofgovernment'sIntegrated Child Development Services ("ICDS") programme to improve the health and well-being of children in the age group of 3-6 years and link women to sustainable livelihood and economic empowerment opportunities through 125 Nand Ghars in Barmer, Rajasthan. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability Impact Assessment – Impact of Intervention: • • Increased Access to Supplementary Nutrition. 68% of the respondent households which were accessing the Nand Ghar Centres reported that there was increased access to supplementary nutrition owing to Cairn's project interventions. Improved Status of Nutrition. In Barmer, 13% of households reported that child moved from Moderate Acute Malnutrition ("MAM") to healthy. 12% of the households reported that child moved from Severe Acute Malnutrition ("SAM") to healthy and an overwhelming 63 reported that child moved from SAM to MAM. B. Thematic Area – Healthcare 1. Project Name: Mobile Health Van ("MHV") Project Brief: MHVs are medical units on wheels which have been able to effectively provide affordable, accessible, reliable and quality preventive healthcare servicestobeneficiariesattheirdoorstep.Throughour 7 MHVs, we deliver basis healthcare services to 249 villages in Rajasthan and Gujarat. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability 2. Project Name: Doctor’s Support – Barmer District Hospital Project Brief: To improve medical facilities in the district hospital, two major interventions have been initiated by the Company – ‘Green Barmer, Clean Barmer’ campaign to create awareness on health and hygiene; and strengthening the health services offered at the government district hospital by providing medical specialists. These specialists include an ENT specialist, a general surgeon, and a dentist to the CHC at Baitu. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability Impact Assessment – Impact of Intervention: • Due to MHV program, 63% of the respondents in • Through the efforts undertaken by Cairn, the district hospital of Barmer has received Quality Assurance CertificatefromtheGovernmentofIndia.Twice,the DistrictHospital,baggedfirstplaceunder‘Mera Aspatal Project’. • 52%ofthebeneficiariesinBarmerand43%ofthe beneficiariesinJalorereportedthatduetoCairn's health intervention, there is an improvement in access to health care facilities. Barmer and 33% respondents in Jalore reported to have an increase in the timely availability of health care services. • DuetoCairn'shealthintervention,thebeneficiaries reported to have an average additional income of `730 due to reduction in number of days of sickness. • As per the primary data, the respondents reported to have a reduction of on average `1,719 on the annual out-of-pocket expenditure on health. Extremely Satisfactory Moderately Satisfactory Satisfactory 222 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS C. Thematic Area – Skill Development 1. Project Name: Cairn Enterprise Centre, Barmer Project Brief: One of the pressing needs of the community has been employment, for which Cairn has established two vocational skill training centres, namely – Cairn Enterprise Centre (“CEC"), Barmer. Through these centres, various vocational courses related to electricians, masonry, computers, plumber, etc. have been imparted. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability Impact Assessment – Impact of Intervention: • Alltherespondentbeneficiariesreportedwho enrolled in the Cairn Enterprise Centre reported toreceivecertificationaftercompletingthe training program. • 100%ofthebeneficiariesfromBarmerand100% beneficiariesfromJalorereportedtoreceivecareer counselling through Cairn Enterprise Centres. • Similarly,100%ofthebeneficiariesreportedto receive placement opportunities through Cairn Enterprise Centers. D. Thematic Area – Agriculture and Animal Husbandry (Livelihoods) 1. Project Name: Barmer Unnati Project Brief: The project aims to develop livelihood models and value chain interventions, and to increase the income of the farming communities by introducing and promoting new crops and technologies in the region through natural resource management practices. Indicator Relevance Coherence Effectiveness Efficiency Sustainability Scoring Impact Assessment – Impact of Intervention: • Increase in Income – In the current impact study, on an average there has been an increase in income of `16,862 for 58%ofthebeneficiariesinvolvedinagriculture. – Datashowsthat74%ofthebeneficiaries reported to have an increase in income within a range of `5,000-10,000 annually, followed by 13% of the respondent households that reported to have an annual increase in income in the range of `1,000-2,000 while 8% of the beneficiariesreportedtohaveanincreasein income within a range of `1,000-5,000. – 5% of the respondents households reported to have an increase in the income in the range `20,000-50,000. • Decrease in Input Cost – There was an average decrease of `4,536 in the input cost of farmers annually. • Improvement in Food Security – 64%oftherespondentbeneficiariesofthe project reported to have an improvement in the food security owing to the association with the project. • Reduction in Outward Migration Extremely Satisfactory Moderately Satisfactory Satisfactory 223 E. Thematic Area – Water and Sanitation 1. Project Name: Jeevan Amrit Project Brief: To address the shortage of safe drinking water, Cairn has launched this project with a focus on providing doorstep access to safe drinking water. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability F. Thematic Area – Community Infrastructure 1. Project Name: Micro Level Intervention Project Brief: Creating multiple channels of continuous engagement with communities through need-based projects is a key strategy in CSR operations. This engagement helps to build a platform to connect and interact with community at large. Celebration of events, important days, creating awareness on important topics, addressing community needs, etc. are some of the engagement tools. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability VAL – Jharsuguda A. Thematic Area – Community Infrastructure 1. Project Name: WASH/Community Infrastructure Project Brief: VAL-J is committed to improving the quality of life of the people within the plant periphery. They provide basic to advance infrastructure facilities to the community through construction of road, culvert, drain, tube well, pond, community centre, temple, electrification,installationofCCTVcameraetc.In FY 2022, community infrastructures like community centre, Sanskruti Bhavan, installation of tube well, pond renovation and cleaning etc. were constructed. At present,morethan575keyinfrastructureassets have been created for the community. Impact Assessment – Impact of Intervention: • As per the primary data received from the ground, 56% of the respondent households, who are dependent on the RO water, reported that the intervention has resulted in the decrease in the prevalence of the water borne diseases in the community. This is attributed to the fact that they are consuming pure and treated water from the RO plants. • Moreover, 62% of the respondent households reported to have an improvement in the access to clean drinking water. Impact Assessment – Impact of Intervention: • As part of the intervention, in Assam we witnessed that 84.6% the respondents responded positively on increase in income due to increase in yield. • The average increase in annual income in Golaghat was `2,000 and in Jorhat it was `3,285. • The same respondents also reported a decrease in put costs. In Golaghat, the decrease reported was `1,500 and in Jorhat it was `1,571. 69.2% of the beneficiariesinterviewedalsoreportedanincrease of land under sustainable/organic cultivation. 52.8%ofthebeneficiariesinterviewedreportedan increase of land under cultivation. Impact Assessment – Impact of Intervention: • 52% of the respondent households reported to have improved access to clean drinking water, while 32% of the respondent households reported to have enhanced security amongst girls and women of the community. • 15% of the respondent households reported to have decrease in water borne diseases while, 38% of the respondent reported to have improvement in the sanitation and hygiene of the village. Extremely Satisfactory Moderately Satisfactory Satisfactory 224 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS VAL – Lanjigarh A. Thematic Area – Healthcare 1. Project Name: Project Aarogya Project Brief: Under healthcare, the Business Unit has two interventions. Project Aarogya, which consists of Vedanta Hospital, providing healthcare services in Lanjigarh and the Mobile Health Unit that provides health services to the last mile. The hospital engaged a highlyqualifiedandexperiencedmedicalstafftoensure that the hospital delivers quality treatment. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability Iron Ore Business A. Thematic Area – Healthcare 1. Project Name: Alternative Livelihood Opportunity Project ("ALOP") Project Brief: The primary objective of the Project is to build capacities of farmers in sustainable agriculture and livestock support. The project is implemented in partnership with expert organisation ‘BAIF’. Scoring Indicator Relevance Coherence Effectiveness Efficiency Sustainability Impact Assessment – Impact of Intervention: • 44% of the respondents stated that there has been a decrease in the average annual expenditure on health. The average decrease was `1,624. While the other 34% felt that there has been an increase in their expenditure on health. The remaining 16% and 6%ofbeneficiariesdidnotseeanychangeorhave not responded to the issue respectively. • 54% of the respondents felt that there is an increase in accessibility to free medicines via MHU’s and 42% felt that it helps in better ORS distribution. 24% of the respondents reported access to health check-up through MHU. • 78% of the respondents stated that MHU has led to increase timely access to health services. Impact Assessment – Impact of Intervention: • 53% of the respondents reported noticing an improvement in their incomes after the intervention. • Nearly 45% of the respondents who reported having land brought under sustainable agriculture or organic cultivation. • The respondents reportedly saw an improvement in terms of women empowerment indicators such asimprovedskillsets(21%),increasedconfidence and self-esteem (28%), improved social support network (27%), praise from family/relatives (28%) and a stronger role in family decisions (23%). • Nearly 50% of the respondents also reported having noticed an improvement in women’s ability to accessfinancialservices,improvedregularsavings, improved decision-making in HH, and improved participation in gram sabhas. The detailed impact assessment reports for the above projects can be accessed at www.vedantalimited.com. Extremely Satisfactory Moderately Satisfactory Satisfactory 225 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, 2014 Sr.No. Requirement Disclosure 1 2 3 4 5 6 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 and Commission of each Director to the median remuneration of the employees of the Company for the financial year Percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company Secretary or Manager, if any, in the financial year Name of the Director Category Navin Agarwal (1) Executive Vice-Chairman Sunil Duggal Whole-time Director & ChiefExecutiveOfficer Anil Agarwal Non Executive Chairman UK Sinha DD Jalan Independent Director Independent Director Akhilesh Joshi Independent Director Padmini Sekhsaria Independent Director Priya Agarwal Non Executive Director Name Category Navin Agarwal Executive Vice-Chairman Sunil Duggal Ajay Goel (2) Whole-time Director & ChiefExecutiveOfficer Acting Group Chief Financial Officer Prerna Halwasiya Company Secretary & ComplianceOfficer Ratio 227.82 154.98 0.64 10.87 10.45 10.02 9.06 11.83 Increment Percentage 5% 5% 8% 32% Percentage increase in the median remuneration of employees in the financial year Themedianremunerationoftheemployeesinthefinancialyearwas increased by 10.56%* Number of permanent employees on the rolls of Company There were 8,545 employees of Vedanta Limited as on 31 March 2023 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 Average increment in FY 2023 for Managerial Personnel (M4 and Above): 9.25% Average Increment in FY 2023 for non Managerial Personnel (M5 and Below): 10.55% No exceptional increase given in the managerial remuneration. Affirmation that the remuneration is as per the remuneration policy of the Company Yes *Median calculated is against employees active throughout the full financial year in FY 2023 Notes: 1. 2. For Mr. Navin Agarwal, the ratio inclusive of remuneration received from Vedanta Resources Limited, UK, the Holding Company, is 347.25. Mr. Ajay Goel ceased to be Acting Group Chief Financial Officer and Key Managerial Personnel of the Company with effect from close of business hours on 09 April 2023. 226 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS DIRECTORS' REPORT ANNEXURE D Form No. MR-3 Secretarial Audit Report FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 [Pursuant to Section 204(1) of the Companies Act, 2013 read with Rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 and Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015] To, The Members, Vedanta Limited We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Vedanta Limited (hereinafter called “Company" or “VEDL")forthefinancialyearended31 March 2023 (“Audit Period") in terms of the engagement letter dated 29 April 2022. The secretarial audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conduct/statutory compliances and expressing our opinion thereon. BasedonourverificationoftheCompany’sbooks,papers, minutebooks,formsandreturnsfiledandotherrecords maintained by the Company and also the information providedbytheCompany,itsofficers,agentsandauthorised representatives during the conduct of secretarial audit, we hereby report that in our opinion, subject to our comments herein, the Company has, during the Audit Period, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance- mechanism in place. f) g) h) i) j) k) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; Securities and Exchange Board of India (Share Based EmployeeBenefitsandSweatEquity)Regulations, 2021; The Securities and Exchange Board of India (Debenture Trustee) Regulations, 1993 (in relation to obligations of Issuer Company); The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 to the extent applicable to/dealing with the Company; Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018; Specificlawsapplicabletotheindustrytowhichthe Companybelongs,asidentifiedandconfirmedbythe Company, compliance whereof as examined on test- checkbasisandasconfirmedbythemanagement,that is to say: We have examined the books, papers, minutes, forms andreturnsfiledandotherrecordsmaintainedbythe Company for the Audit Period, according to the provisions of applicable law provided hereunder: 1. 2. The Mines Act, 1952 and Rules made thereunder; and The Mines and Minerals (Development and Regulation) Act, 1957 and Rules made thereunder a) b) c) d) The Companies Act, 2013 (“Act") and the rules made thereunder including any re-enactment thereof; 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; The Securities Contracts (Regulation) Act, 1956 (“SCRA") and the rules made thereunder; The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations"); e) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; We have also examined compliance with the applicable clauses of the Secretarial Standards for Board Meetings (“SS-1") and for General Meetings (“SS-2") issued by the Institute of Company Secretaries of India. We report that during the Audit Period, the Company has complied with the provisions of the applicable Act, rules, regulations, guidelines, standards etc. During the Audit Period, the Company has undertaken transactions with its holding company, Vedanta Resources Limited (“VRL"), and has made payment of Brand License and Strategic Services Fee (“BSF"), for FY 2023 and FY 2024. The Company has relied upon an opinion, with respect to non-aggregation of transactions relating to brand usage with other transactions with the related party, for the purpose of materiality under proviso to Reg. 23(1) r/w Reg. 23(4) of Listing Regulations, and has, therefore, applied the limits under Reg. 23(1A) separately. 227 & Gas and `377 crore for Aluminium business in the form of equity investment, expected to give returns in form of guaranteed supply of power, to aquire 26% in a Special Purpose Vehicle, being a joint venture between the Company and Serentica Renewables India Private Limitedanditsaffiliates,relatedparty(ies),toenterinto a Power Delivery Agreement for a period of 25 (twenty- five)years. To secure a continuing term loan, the Company has executed a non-disposal undertaking (“NDU”) and created pledge, with respect to its shareholding in Hindustan Zinc Limited (“HZL”) to the extent of 50.1% and 1% of the paid-up share capital of HZL respectively. Also, there is an existing pledge of 5.77% of the paid-up share capital of HZL created by the Company previously. TheCompanyhadfiledForm15Fon01December 2022 with the US Securities and Exchange Commission (“SEC") to deregister the American Depository Securities and the underlying equity shares pursuant to the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act"). As a result, the Company’s reporting obligations under the Exchange Act were ceased and the Company has been deregistered from the SEC effective 01 March 2023. The National Company Law Tribunal, Cuttack Bench, vide order dated 15 November 2022 has sanctioned the Scheme of Amalgamation of FACOR Power Limited, subsidiary of Ferro Alloys Corporation Limited into Ferro Alloys Corporation Limited, a subsidiary of VEDL. For M/s Vinod Kothari & Company Practicing Company Secretaries Unique Code: P1996WB042300 Nitu Poddar Partner Membership No.: A37398 CP No.:15113 UDIN: A037398E000286891 PeerReviewCertificateNo.:781/2020 Place: New Delhi Date:11May2023 The report is to be read with our letter of even date which is annexed as ‛Annexure I’ and forms an integral part of this report. 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 Audit Period were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings and Committee Meetings, agenda and detailed notes on agenda were sent at least seven days in advance with due compliance of the Act and SS-1 except for the meetings held at a shorter notice (in compliance of applicable provisions). Further, a system exists for seeking andobtainingfurtherinformationandclarificationson the agenda items before the meeting and for meaningful participation at the meeting. All the decisions are carried through unanimous approval and there was no minuted instance of dissent in Board or Committee meetings. c. d. We further report that there are adequate systems and processes in the Company, which commensurate with its size and operations to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We have separately given our recommendations towards good corporate governance practices. e. We further report that during the Audit Period, the Company hasundertakenthebelowmentionedspecificevents/ actions that can have a major bearing on the Company’s compliance responsibility in pursuance of the above- referred laws, rules, standards, etc: a. Declarationoffiveinterimdividends,aggregatingto `101.50 per share resulting in pay-out of `37,733 crore. We have relied on the Key Audit Matters and draft Report of the Independent Auditors’ under section 143(3) read with Rule 11 of Companies (Audit and Auditors) Rules, 2014 with respect to considering certain exceptional items as part of distributable profits.ThesaidReportconfirmsthecompliance by the Company with Section 123 of the Act. b. In continuation to the investments done in FY 2022, the Board has accorded approval for procurement of renewable power under the group captive scheme and to further infuse `22 crore for Copper, `45 crore for Oil 228 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Annexure I Auditor and Management Responsibility ANNEXURE TO SECRETARIAL AUDIT REPORT To, The Members, Vedanta Limited Our Secretarial Audit Report of even date is to be read along with this letter. 1. 2. 3. 4. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. The list of documents for the purpose, as seen by us, is listed in ‛Annexure II'; We have followed the audit practices and the processes as were appropriate to obtain reasonable assurance about the correctness of the contents of the secretarial records.Theverificationwasdoneonatestbasisto 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; Our Audit examination is restricted only upto legal compliances of the applicable laws to be done by the Company, we have not checked the practical aspects relating to the same; Wherever our Audit has required our examination of books and records maintained by the Company, we have relied upon electronic versions of such books and records, as provided to us through online communication. Considering the effectiveness of information technology tools in the audit processes, wehaveconductedonlineverificationandexamination of records, as facilitated by the Company, for the purpose of issuing this Report. In doing so, we have followed the guidance as issued by the Institute. We haveconductedonlineverificationandexaminationof records, as facilitated by the Company; 5. 6. 7. 8. 9. Wehavenotverifiedthecorrectnessand appropriatenessoffinancialrecordsandbooksof accounts of the Company as well as the correctness of thevaluesandfiguresreportedinvariousdisclosures and returns as required to be submitted by the Companyunderthespecifiedlaws,thoughwehave relied to a certain extent on the information furnished in such returns; We have held discussion with the management on several points and wherever required, we have obtained the management representation about the compliance of laws, rules and regulations and happening of events etc.; The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. Our examination waslimitedtotheverificationofprocedureon test basis; Due to the inherent limitations of an audit including internal,financial,andoperatingcontrols,thereisan unavoidable risk that some misstatements or material non-compliances may not be detected, even though the audit is properly planned and performed in accordance with audit practices; The contents of this Report has to be read in conjunction with and not in isolation of the observations, if any, in the report(s) furnished/to be furnished by any other auditor(s)/agencies/authorities with respect to the Company; 10. The Secretarial Audit report is neither an assurance as tothefutureviabilityoftheCompanynoroftheefficacy or effectiveness with which the management has conducted the affairs of the Company. 229 Annexure II List of Documents 1. Signed minutes for the meetings of the following held during the Audit Period: a. Board of Directors; b. Audit & Risk Management Committee; c. Nomination & Remuneration Committee; d. Corporate Social Responsibility Committee; e. Stakeholders Relationship Committee; f. ESG Committee; g. Committee of Directors; h. Annual General Meeting; and i. Court Convened Meeting of shareholders, secured creditors and unsecured creditors. Proof of circulation of draft and signed minutes of the Board and Committee meetings on a sample basis; Resolutions passed by circulation; Agendas of various Board and Committee meetings on sample basis; Annual Report for FY 2022; 2. 3. 4. 5. 6. DraftfinancialstatementforFY2023; 7. DraftReportoftheIndependentAuditors’forFY2023,w.r.t.tospecificeventinclause(a)above; 8. Directors’ disclosures under the Act and rules made thereunder; 9. Statutory registers maintained under the Act; 10. FormsfiledwiththeRegistrar; 11. Policies framed under LODR and the Act, as available on the website of the Company; 12. Code of Conduct to regulate, monitor and report trading by its designated persons and immediate relatives of designated persons; 13. Memorandum of Association and Articles of Association of the Company; 14. Three opinions obtained by the Company w.r.t. RPTs dated 28 March 2022 and 23 February 2023 w.r.t BSF and 05 July 2022,w.r.t.tospecificeventinclause(b)above. 230 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ANNEXURE D-1 Form No. MR-3 Secretarial Audit Report FOR THE FINANCIAL YEAR ENDED 31 MARCH 2023 [Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014] To, The Members, Bharat Aluminium Co. Ltd We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by Bharat Aluminium Co Ltd (hereinafter called “Company”)forthefinancialyearended 31 March 2023 (“Audit Period”) in terms of the engagement letter dated 04 November 2022. The secretarial audit was conducted in a manner that provided us a reasonable basis for evaluating the corporate conduct/statutory compliances and expressing our opinion thereon. BasedonourverificationoftheCompany’sbooks,papers, minutebooks,formsandreturnsfiledandotherrecords maintained by the Company and also the information providedbytheCompany,itsofficers,agentsand authorised representatives during the conduct of secretarial audit, we hereby report that in our opinion, the Company has, during the Audit Period, complied with the statutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place. We have examined the books, papers, minutes, forms andreturnsfiledandotherrecordsmaintainedbythe Company for the Audit Period, according to the provisions of applicable law provided hereunder: 1. 2. 3. 4. The Companies Act, 2013 (“Act”) and the rules made thereunder including any re-enactment thereof; The Depositories Act, 1996 and the regulations and bye- laws framed thereunder; Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of External Commercial Borrowings; Specificlawsapplicabletotheindustrytowhich theCompanybelongs,asidentifiedandcompliance whereofasconfirmedbythemanagement,thatisto say: a) The Mines Act, 1952 and Rules made thereunder. b) The Mines and Minerals (Development and Regulation) Act, 1957, and the Rules made thereunder. c) The Electricity Act, 2003 and rules and regulations made thereunder. We have also examined compliance with the applicable clauses of the Secretarial Standards for Board Meetings ("SS-1") and for General Meetings ("SS-2") issued by the Institute of Company Secretaries of India. We report that during the Audit Period, the Company has complied with the provisions of the Act, rules, standards etc. mentioned above. We further report that: The Board of Directors of the Company is duly constituted with a 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 Audit Period, were carried out in compliance with the provisions of the Act and other applicable laws except that there are two government nominees appointed during the Audit Period. As per the understanding and practice of the Company, the government nominees are appointed on the Board as per the executed Shareholders Agreement directly upon receipt of order letter from the Ministry of Mines. Noting of such appointment is made in the immediate next meeting of the Nomination and Remuneration Committee (“NRC”) and Board meeting. We have recommended the Company to route any appointment of directors through NRC, Board and approval from the shareholders as required under clause (2) and (6)(a)(ii) of section 152 of the Act. We observe that during the Audit Period, there were only two directors liable to retire by rotation and one of them beinglongestinoffice,retiredattheannualgeneralmeeting and being eligible offered himself for re-appointment and was re-appointed on the Board. The Company has a practice of not considering government nominee directors in the category of directors retiring by rotation. We have recommended to the Company to include the government nominees as well for the calculation of total number of directors liable to retire by rotation pursuant to section 152(6)(d) and explanation thereof. Adequate notice is given to all directors to schedule the Board Meetings and Committee meetings, agenda and detailed notes on agenda were sent at least seven days in advance except for the meeting(s) convened at shorter notice with due compliance of Act and SS-1. Further, a system exists for seeking and obtaining further information andclarificationsontheagendaitemsbeforethemeeting and for meaningful participation at the meeting. 231 All the decisions were unanimous and there was no instance of dissent in Board or Committee Meetings. We further report that there are adequate systems and processes in the Company, which commensurate with its size and operations to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. We further report that during the Audit Period, the Companyhasundertakenthebelowmentionedspecific event/action that can have a major bearing on the Company’s compliance responsibility in pursuance of the above referred laws, rules, standards, etc: Equity investment of 26% in Special Purpose Vehicle (SPV): During the Audit Period, the Board has, at its meeting held on 02 February 2023, accorded approval for procurement of renewable power under the group captive scheme and to infuse `245 crore in the form of equity investment (without anyeconomicbenefit)of26%inSPVbytheCompanyin partnership with Serentica Renewables India Private Limited (“SRIPL”) and to enter into a Power Delivery Agreement (“PDA”)foraperiodof25(twenty-five)years. For M/s Vinod Kothari & Company Practicing Company Secretaries Unique Code: P1996WB042300 Nitu Poddar Partner Membership No.: A37398 CP No.: 15113 Place: New Delhi UDIN: A037398E000078846 Date:13April2023 PeerReviewCertificateNo.:781/2020 The report is to be read with our letter of even date which is annexed as ‘Annexure I’ and forms an integral part of this report. Annexure I Auditor and Management Responsibility ANNEXURE TO SECRETARIAL AUDIT REPORT To, The Members, Bharat Aluminium Co. Ltd. Our Secretarial Audit Report of even date is to be read along with this letter. Maintenance of secretarial records is the responsibility of the management of the Company. Our responsibility is to express an opinion on these secretarial records based on our audit. The list of documents for the purpose, as seen by us, is listed in ‛Annexure II'; We have followed the audit practices and the processes as were appropriate to obtain reasonable assurance about the correctness of the contents of thesecretarialrecords.Theverificationwasdoneona 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; Our Audit examination is restricted only upto legal compliances of the applicable laws to be done by the Company, we have not checked the practical aspects relating to the same; Wherever our Audit has required our examination of books and records maintained by the Company, we have relied upon electronic versions of such 1. 2. 3. 4. 232 books and records, as provided to us through online communication. Given the challenges and limitations posed by COVID-19, lockdown restrictions (wherever applicable), as well as considering the effectiveness of information technology tools in the audit processes, wehaveconductedonlineverificationandexamination of records, as facilitated by the Company, for the purpose of issuing this Report. In doing so, we have followed the guidance as issued by the Institute. We haveconductedonlineverificationandexaminationof records, as facilitated by the Company; 5. 6. 7. Wehavenotverifiedthecorrectnessand appropriatenessoffinancialrecordsandbooksof accounts of the Company as well as correctness of the valuesandfiguresreportedinvariousdisclosuresand returns as required to be submitted by the Company underthespecifiedlaws,thoughwehavereliedtoa certain extent on the information furnished in such returns; Wherever required, we have obtained the management representation about the compliance of laws, rules and regulation and happening of events etc; The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. Our examination was limitedtotheverificationofprocedureontestbasis; VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 DIRECTORS' REPORT INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 8. Duetotheinherentlimitationsofanauditincludinginternal,financial,andoperatingcontrols,thereisanunavoidablerisk that some misstatements or material non-compliances may not be detected, even though the audit is properly planned and performed in accordance with audit practices; 9. The contents of this Report has to be read in conjunction with and not in isolation of the observations, if any, in the report(s) furnished/to be furnished by any other auditor(s)/agencies/authorities with respect to the Company; 10. TheSecretarialAuditreportisneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficacyor effectiveness with which the management has conducted the affairs of the Company. Annexure II List of Documents 1. Minutes for the meetings of the following held during the Audit Period: a. Board of Directors; b. Audit Committee; c. Nomination & Remuneration Committee; d. Corporate Social Responsibility Committee; e. Finance Standing Committee; f. Annual General Meeting. 2. Proof of circulation of draft and signed minutes of the Board and Committee meetings’ on a sample basis; 3. Annual Report for FY 2022; 4. Financial Statements and Auditor’s Report for FY 2022; 5. Directors disclosures under the Act and rules made thereunder; 6. Statutory Registers maintained under the Act; 7. FormsfiledwiththeRegistrar; 8. Policies framed under Act, 2013 viz. CSR Policy, Remuneration Policy and Whistle Blower Policy; 9. Memorandum of Association and Articles of Association of the Company. 233 REPORT ON CORPORATE GOVERNANCE Company’s Philosophy on Code of Governance Vedanta’s Corporate Governance philosophy is driven by “Seven Pillars of Vedanta” which is a reflection of our value system encompassing our culture, policies, and relationships with our stakeholders. Integrity and transparency are key to our corporate governance practices and performance, and ensure that we gain and retain the trust of our stakeholders at all times. We are committed to meet the aspirations of all our stakeholders. This is demonstrated in shareholder returns, awards and recognitions, governance processes and an entrepreneurial performance focussed work environment. Good corporate governance underpins the way we conduct business. We are committed to the highest level of governance and strive to foster a culture that values and rewards exemplary ethical standards, personal and corporate integrity and respect for others. We continue to set global benchmarks of all-round excellence in sustainability and governance performance. At Vedanta, our commitment to good governance goes beyond compliance and statutory norms. We truly believe that purpose-led corporate governance and ethics-led corporate behaviour are essential to our success. In fact, this is the foundation on which we continue to build VedantaasnotonlyIndia’slargestdiversifiednatural resources company, but also the most sustainable. As we grow from strength to strength, we continue to raise our bar across our governance practices, ranging from our ground-breaking ESG commitments, to best-in-class disclosure practices, Board independence, alignment to globally-accepted norms and policies, and our emphasis on digitally-enabled, technology-led business. Our strong governance practices invariably underpin our future transformation journey, where effecting responsible change is a core mandate. Through this, we not only push ourselves better, but also set newer benchmarks for the industry and peers to adopt. We continue to be a change maker in everything we do, and good governance is the cornerstone that empowers us to do so. Quality Growth Giving back to Community/ Society SEVEN PILLARS OF VEDANTA Values, Ethics and Governance Digitalisation, Innovation, Technology and Excellence GUIDING PRINCIPLES Sustainability, Health, Safety and Environment People Transparency and Accountability Policies and Regulatory Framework Management/ Board and Committees Values and Ethics Monitoring and Internal Control VEDANTA CORPORATE GOVERNANCE Executing Strategy and Managing Risk Compliance with Global Guidelines and Best Practices Your Company has been at the forefront in complying with global best practices in Corporate Governance. Duringthefinancialyear,yourCompanywasbestowedwith the coveted “Golden Peacock GLOBAL Award for Excellence in Corporate Governance - 2022" in recognition of our continuous efforts to lead the industry and global best practices and the commitment to corporate governance, transparency, ethics, risk management, diversity and inclusion, ESG and involvement with its stakeholders and communities around the world. We received this coveted title for the third time and our selection was an outcome of a three-tier assessment, amongst over 200 other global nominations. Golden Peacock Awards are regarded as a benchmark of Corporate Excellence worldwide. This marks as another milestone in our journey towards sustainably contributing to India’s growth and progress whilst maintaining transparency, reliability and integrity. 234 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The Company was also awarded as “Platinum Winner Worldwide” for its Integrated Annual Report FY 2022 in US$10+ billion revenue category for excellence within its industry at the League of American Communications Professionals (“LACP") Vision Awards. The report has been ranked 38th among all entries worldwide and has been given the additional honors of “Technical Achievement Award Winner”. The LACP is a highly regarded award for corporate reporting and communications receiving extensive participation from companies representing various industries and organisational sizes. The 2022 Vision Awards Global Communications Competition drew one of the largest number of submissions ever, with nearly 1,000 organisations representing different countries across categories. Our crisp narrative, contemporary design, creativity, and message clarity were recognised and positively acclaimed. This accomplishment reflects a testament to our commitment towards producing reports of the highest quality. 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 our stakeholders and respecting minority rights in all our business decisions. 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. Some of the corporate governance initiatives undertaken by the Company are elucidated below: Board level initiatives: • Board Level ESG Committee, chaired by an Independent Director • Audit & Risk Management Committee comprising of only Independent Directors • Enhanced Terms of Reference of Stakeholders' Relationship Committee (“SRC") by including framing of Investor Relations (“IR") Strategy, Perceptions and active engagement and communication with major shareholders of the Company • All Statutory Committees of Board are chaired by an Independent Director • Board Diversity in place as a sub-set of Nomination & Remuneration Policy • SeparateRolesofChairman&ChiefExecutiveOfficer (“CEO") and held by different individuals Digitalisation Initiatives: • Insider Trading Monitoring Tool & Awareness programmes on Insider Trading • Unpublished Price Sensitive Information ("UPSI") Sharing Database • Ethics Compliance Month - Quiz & Automated Training Module • Online Gift Declaration Portal • A complete and robust online system for ensuring compliances across all locations and functions. • Online Platform for Performance Evaluation of Directors, Board & its Committees • Online Secured Platform for circulation of documents to Directors Initiatives for Stakeholders: Additional Disclosures / Reports • NSDL facility for registering email IDs • Sustainability Report as per Global Reporting Initiative Standards • Tax Transparency Report (“TTR") as per Indian Accounting Standards • TCFD Report for climate related financialdisclosures • Facility on website for updations of PAN, Bank mandate and email ID with the Company by the shareholders holding securities in physical form • Request in all correspondences: Urge to shareholders to convert their physical holdings in dematerialised form and to register their email ID, PAN and Bank mandatebyemphasisingonthebenefitsforthesame • Online Speaker registration and Chat Facility during Annual General Meeting (“AGM") of the Company • Online Survey for Shareholder feedback • Email to Shareholders on Quarterly Results, Annual Report, Tax Transparency Report, Sustainability Report, CSR Report etc. 235 REPORT ON CORPORATE GOVERNANCE 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. 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 from its business activities. Starting FY 2018, 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 2023 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: Financial Capital Natural Capital Human 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 intoaccounttheGroup’sfinancial resources with a view to maximising returns to shareholders. 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. 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. Intellectual Capital Social and Relationship Capital Manufactured 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. 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. The Company invests in assets including best-in-class equipment and machinery to ensure it operates asefficientlyandsafelyaspossible 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 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 bottomlineprinciples–people,planet,andprofit. Vedanta applies its sustainability performance reporting criteria based on GRI Standards including the Mining & Metals and Oil & Gas Sector Disclosures; National Guidelines for Responsible Business Conduct framed by the Ministry of Corporate Affairs (“MCA"), Government of India; UNGC principles; and standards set by International Council on Mining and Metals (“ICMM"). For further insights into the sustainability practices adopted by your Company, the Sustainability Report for FY 2023 can be accessed at www.vedantalimited.com. Vedanta also produces two additional reports that disclose our ESG strategy and performance: (i) (ii) Business Responsibility and Sustainability Report ("BRSR"), aligned to the guidelines laid down by Securities and Exchange Board of India ("SEBI"). The BRSR report can be found within the Integrated Annual Report. TCFD Climate Change Report, aligned to the guidelines laid down by the Financial Stability Board ("FSB"). This report discloses in detail, the Company's strategy in addressing and adapting to the impacts of climate change. 236 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS • • Response to Stakeholder and Tax Environment; Tax Approach in our jurisdictions. This voluntary reporting on tax contributions done through our TTR. In this report, in addition to economic contribution under various tax and non-tax heads, we also provide information on how we address our tax related decisions, adherence to tax compliances, approach to tax complexities. The narration demonstrates our strong governance structure that promotes and ensures adherencetoregulationswhileencouragingtaxefficiencyin operations. The contributions, that are direct and indirect in nature, are categorically provided for all the countries where wehavesignificantoperations. Tax Transparency Reporting Vedanta has been an industry leader in following one of the most long-standing and uninterrupted approach to voluntary reporting on our tax contributions. This dedicated endeavour is a testament to our commitment to all our stakeholders to provide greater transparency and disclosure ofprofitsearnedandcontributionsmadetothevarious Governments in the jurisdictions in which we operate. In our journey,westriveforimprovedefficiencyandsustainability while ensuring excellence in our operations. The report focuses on our approach to Tax Governance and Strategy and includes the following: • • Tax Principles; Tax Risk Management, Control and Compliance; OUR GUIDING TAX PRINCIPLES 1 Trust 2 Compliance 3 Transparency To maintain high standards of integrity with respect to tax compliance and reporting. To observe all applicable laws, rules and regulations in the countries where we operate, including in respect to transfer pricing. To meet all tax compliance requirements in a timely manner, through a team of suitably qualifiedtaxprofessionalsand external consultants/advisors. To maintain the Group’s reputation as a fair contributor to the economy where tax forms a part ofthatcontribution.To proactively disclose detailed information about the overall tax contribution of the Group to the governments ofthecountrieswherewe operate. 4 Economic Substance 5 Processes and Controls 6 Engagement with Regulators We only undertake transactions which will have results that are consistent with the underlying economic consequences, including tax structures with commercial substances. To ensure that all transactions and tax positions are properly documented. In completing the Group’s tax compliance requirements, we aim to apply diligent professional care and judgment, including ensuring all decisions are taken at an appropriate level and supported by documentation that evidencesthejudgment involved. Workingpositively,proactivelyand transparently with tax authorities to minimise the extentof disputes,achieveearly agreement on any disputed issues when they arise, and achieve certainty wherever possible. 7 Risk Management 8 Proactive Consultation 9 People Progress To identify tax risks in a consistent and formal manner and communicate these when appropriate to the Audit & Risk Management Committee and the Board. To actively participate in tax policy consultation processes where appropriate at a national or international level. To develop our people, through training, experience and opportunity. The report for FY 2023 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-tiered governancestructurewithdefinedrolesandresponsibilitiesof every constituent of the governance system. 237 REPORT ON CORPORATE GOVERNANCE Resilience in corporate governance A well-developed governance framework plays a vast role in delivering resilience and operational transparency. We are part of a constantly evolving world and ‘Resilience’ is an increasingly important organisational quality, which is critical for ensuring success. A resilient organisation is adaptable, agile, responsive and robust. It is able to utilise new opportunities while also recovering quickly from unforeseen challenges. In today’s business climate, there are many such challenges – from evolving technologies, global risk, regulatory and legal hurdles, industry practices etc. At Vedanta, the Board and Senior Leadership teams strike a balance between mitigating risk and sustaining profitablegrowth.ThedetailsofRiskManagementhave been included in the earlier section of this Annual Report. Board of Directors The Board of Directors is an apex body and an enlightened board creates a culture of leadership providing long-term vision and improving the governance practices. They play a crucial role in guiding, overseeing, monitoring strategy, performance and long-term success of the Company as a whole through strategic direction. TheBoardofDirectorsholdafiduciaryposition,exercises appropriate control and independent judgement, monitors effectiveness of Company’s governance and supervises the strategic decisions on behalf of the shareholders and other stakeholders. Our Board represents a confluence of complementary skills, attributes, perspectives, expertise in critical areas and diverse backgrounds. In line with the recommendation of SEBI and our persistent endeavor to adhere to the global best practices, the Company is chaired by Mr. Anil Agarwal, Non-Executive Chairman effective 01 April 2020. With a view to effectively discharge its obligations and functioning of the relevant areas, the Board has delegated certain responsibilities to its various designated Board Committees.EachCommitteehasaclearlydefinedcharter containingthespecifictermsofreferenceandscope and is entrusted with discharging its duties, roles and responsibilities which further recommends to the Board for action. The details of these Committees have been provided in detail in subsequent sections in this report. Governance Risk Management Stakeholder Corporate Governance Framework Strategy, Planning and Performance Integrity and Transparency ESG Compliance and Reporting its future strategy to ensure that the performance of the Company remains healthy and its growth is sustainable. To ensure utmost dedication is given to all businesses, the Company has appointed respective business CEOs and CFOs who directly report to the Group CEO and CFO respectively. Monthly Executive Committee (ExCo) meetings are held to review the performance of each of the businesses. In the quarterly Board meetings, review presentations are made on different businesses by the respective business CEOs and CFOs. Inputs of Board meetings are implemented and update on the same is also provided in the subsequent meetings. The Board proactively also asks for various detailed analysis, benchmarking, review presentations, status updates etc. Based on updates and presentations made, the Board then provides their suggestions to improve the business performance and strategy. Since our Board members have rich prior experience across industry and they come from diverse backgrounds, they provide valuable insights to the senior management about various emerging trends, industry practices, potential growth opportunities, risks etc. Innovation and Technology will pave the way for its steady growth of the Company and accordingly new ideas, innovation and pioneering technologies to create sustainable and long-term value for its stakeholders is encouraged by the Board. Board’s Role in driving Leadership for Excellence and Innovation TheBoardoftheCompanylayssignificantemphasis on the business performance of the Company including Innovation and Technology also form part of our seven pillars. The Board plays a crucial role in guiding and supporting innovation. Board helps in driving strategy for innovation, assessing innovation effectiveness, encouraging and suggesting more areas for innovation. 238 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Separate Role of Chairman and Chief Executive Officer The roles and responsibilities of the Chairman of the Board and CEO have been demarcated and the positions are held by separateindividuals.Further,duringFY2023,theCompanyalsohadaseparatelydesignatedChiefFinancialOfficer(“CFO") and Company Secretary (“CS")andComplianceOfficer. Chairman • Leads the Board and ensures that it discharges its responsibilities effectively; • • • • • • Develops succession plan for Board appointments for approval by the Board; Identifiesstrategicprioritiesandnewbusiness 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 various interests. 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 • Leads the management team; • Develops and executes the corporate strategy in conjunction with the Board; Implements the decisions of the Board and its Committees; Develops Group policies and ensures effective implementation; and Enhances shareholder value and implements the organisation’s vision, mission, and overall direction. • • • Senior Management • Develops and executes business strategy; and • Manages day-to-day decisions and ensures that decisions are in parity with the long-term objectives and policies of the Company. 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 Audit & Risk Management Committee UK Sinha DD Jalan Stakeholders' Relationship Committee DD Jalan UK Sinha Padmini Sekhsaria Akhilesh Joshi Sunil Duggal Corporate Social Responsibility Committee Akhilesh Joshi UK Sinha Padmini Sekhsaria Priya Agarwal Nomination & Remuneration Committee UK Sinha Anil Agarwal DD Jalan ESG Committee UK Sinha Akhilesh Joshi Priya Agarwal Sunil Duggal Share and Debenture Transfer Committee DD Jalan Anupam Kumar* Jagdeep Singh Committee of Directors Navin Agarwal Sunil Duggal DD Jalan CEO Management and Executive Committee Chairperson Member *Mr. Ajay Goel ceased to be a member of Share & Debenture Transfer Committee with effect from close of business hours on 09 April 2023. Mr. Anupam Kumar, Dy. Chief Financial Officer of the Company has been inducted as the Member of the Share & Debenture Transfer Committee with effect from 12 May 2023. 239 REPORT ON CORPORATE GOVERNANCE Changes in the position of Directors/Key Managerial Personnel (“KMP") of the Company during FY 2023: Director/KMP Designation Nature of Change (Appointment/Re- appointment/Cessation) Date of Change Tenure Till Akhilesh Joshi1 Non-Executive Independent Director Re-appointment 01 July 2022 30 June 2024 Padmini Sekhsaria2 Non-Executive Independent Director Re-appointment 05 February 2023 04 February 2025 DD Jalan3 Ajay Goel4 Non-Executive Independent Director Re-appointment ActingGroupChiefFinancialOfficer Cessation 01 April 2023 10 April 2023 31 March 2026 NA 1. 2. 3. 4. Mr. Akhilesh Joshi re-appointed as a Non-Executive Independent Director of the Company for a 2nd and final term of 2 years effective from 01 July 2022. Ms. Padmini Sekhsaria re-appointed as a Non-Executive Independent Director of the Company for a 2nd and final term of 2 years effective from 05 February 2023. Mr. DD Jalan re-appointed as a Non-Executive Independent Director of the Company for a 2nd and final term of 3 years effective from 01 April 2023. Mr. Ajay Goel ceased to be Acting Group Chief Financial Officer and KMP of the Company with effect from close of business hours on 09 April 2023. Board Composition and Size The Board comprises of a One-Tier Structure with an optimum mix of Executive, Non-Executive, Independent and WomenDirectorsfromdiversifiedbackgroundspossessing considerable experience and expertise to promote shareholder interests and govern the Company effectively by providing valuable oversight and insightful strategic guidance. As on 31 March 2023, the Board comprises of eight (08) members, consisting of a Non-Executive Chairman, an Executive Vice Chairman, an Executive Director, a Non-Executive Woman Director and four (04) Non-Executive Independent Directors including one (01) Woman Director. The composition is in conformity with the provisions of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 ("Listing Regulations") and Companies Act, 2013 (the “Act") and in line with global best practices. Also, the Company strives to maintain the target share of Independent Directors at 50% or more as per applicable provisions. Further, the changes in the composition of the Board of Directors that took place during the year under review were in compliance with the provisions of the Act and Listing Regulations. Board Composition as on 31 March 2023 25% 25% 50% Independent Director Non-Executive Director Executive Director Tenure Analysis of Board of Directors as on 31 March 2023 Average Tenure (in years) Tenure (No. of Directors) 3.92 2.74 4.44 5.78 3 2 2 1 Independent Director Executive Director Non-Executive Director Board 0-2 years 2-4 years 4-6 years 6 years and above The Board reviews its composition, competency and diversity from time to time to ensure that it remains aligned with the statutory requirements under law as well as with the global practices. 240 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Diversity and Inclusion ("D&I") Vedanta is committed to the cause of promoting diversity and inclusion within the organisation and in larger communities who we partner with. Our objective is to achieve gender parity across all levels starting from our Board. The Vedanta Group proposes to employ the Global Diversity and Inclusion Benchmarks Model ©O Mara and Richter 2014. The Group’s Diversity and Inclusion initiatives focus on a holistic approach as per below. Global Diversity and Inclusion Benchmarks Model FOUNDATION • D&I Vision, Strategy and Business Case • Leadership and Accountability • Infrastructure and Implementation BRIDGING • Assessment Measurement, and Research • D&l Communications INTERNAL • Recruitment, Development, and Advancement • Benefits,Work-life,and Flexibility • JobDesign,Classification and Compensation • D&l Education and Training EXTERNAL • Community, Government Relations and Social Responsibility • Products and Services Development • Marketing, Sales, Distribution and Customer Service • Supplier Diversity Our workplace policies play an important role in reinforcing a culture on founding principles of D&I. Policies have a strong underpinning on the way we work and approach our lives. These policies ensure that we adhere to highest standards of professionalism and conduct at workplace. Our policies around work-life integration are best-in-class and are framed after extensive deliberations with impacted groups. The Company has in place a Diversity & Inclusion Policywhichshallhelpusdefine,strategise,plan and implement the essential roadmap, guidance and measurement towards bridging the gaps as we work on different facets that have a bearing on achieving diversity goals. This policy is forward-looking and sets a vision for D&I for businesses across the Vedanta Group. Additionally, the Company has in place a Board diversity policy as a subset of the above policy. Your organisation recognises and embraces board diversity as an indispensable component in upholding a competitive advantage. The Board comprises of two (02) women directors including one Independent Director. BOARD DIVERSITY 75% Men 25% Women 241 REPORT ON CORPORATE GOVERNANCE Key Board Qualifications, Skills and Attributes Thetablebelowsummarisesthekeyqualifications,skillsandattributeswhicharetakenintoconsiderationwhilenominating toserveontheBoardandtofunctioneffectively.WhilealltheBoardmemberspossesstheidentifiedskill,theirdomainof core expertise is given in the table. Business Leadership Sustainable success in business at a senior executive level Financial Expertise Proficiencyinfinancialaccountingandreporting,corporatefinanceandinternalcontrols,corporatefunding,and associated risks Natural Resources Senior executive experience in a large, global mining and oil & gas organisations involved in the discovery, acquisition, development and marketing of natural resources/materials Capital Projects Experience working in an industry with projects involving large-scale long-cycle capital outlays Global Experience Experience in multiple global locations, exposed to a range of political, cultural, regulatory and business environments 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 and Acquisition Experience in corporate transactions and actions and joint ventures Government and International Relations Interaction with government and regulators and involvement in public policy decisions Technology/Digital A strong understanding of technology and innovation, and the development and implementation of initiatives to enhance production 242 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS BOARD OF DIRECTORS Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding 70 years 01 April 2020 NA NA 3 years Nil Board Membership – Other Indian Listed Companies Sterlite Technologies Limited Non-Executive Chairman No. of Directorships in Public Limited Companies 3 Member/Chairperson in Committee(s) Member: Nil Chairperson: Nil Anil Agarwal Non-Executive Chairman DIN: 00010883 Areas of Expertise Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding Board Membership – Other Indian Listed Companies Hindustan Zinc Limited No. of Directorships in Public Limited Companies Member/Chairperson in Committee(s) Navin Agarwal Executive Vice-Chairman DIN: 00006303 Areas of Expertise Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding 62 years 17 August 2013 01 August 2018 31 July 2023 9.7 years Nil Director 2 Member: Nil Chairperson: Nil 33 years 17 May 2017 17 May 2020 16 May 2023 5.10 years Nil Board Membership – Other Indian Listed Companies Hindustan Zinc Limited Non-Executive Chairperson No. of Directorships in Public Limited Companies 3 Member/Chairperson in Committee(s) Member: Nil Chairperson: Nil Priya Agarwal Non-Executive Director DIN: 05162177 Areas of Expertise Profileavailableatwww.vedantalimited.com 243 REPORT ON CORPORATE GOVERNANCE UK Sinha1 Independent Director DIN: 00010336 Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding Board Membership – Other Indian Listed Companies Havells India Limited Housing Development Finance Corporation Limited SIS Limited New Delhi Television Limited No. of Directorships in Public Limited Companies Member/Chairperson in Committee(s) Areas of Expertise Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding Board Membership – Other Indian Listed Companies Everest Industries Limited 71 years 13 March 2018 11 August 2021 10 August 2024 5 years Nil Independent Director Independent Director Independent Director Independent Director 8 Member: 8 Chairperson: 5 47 years 05 February 2021 05 February 2023 04 February 2025 2.2 years Nil Non-Executive Non- Independent Director Padmini Sekhsaria Independent Director DIN: 00046486 No. of Directorships in Public Limited Companies 2 Member/Chairperson in Committee(s) Member: 1 Chairperson: Nil Areas of Expertise Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding Board Membership – Other Indian Listed Companies No. of Directorships in Public Limited Companies Member/Chairperson in Committee(s) DD Jalan2 Independent Director DIN: 00006882 Areas of Expertise Profileavailableatwww.vedantalimited.com 244 66 years 01 April 2021 01 April 2023 31 March 2026 2 years 11,000 shares None 3 Member: 4 Chairperson: 2 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding 69 years 01 July 2021 01 July 2022 30 June 2024 1.9 years 200 shares Board Membership – Other Indian Listed Companies Hindustan Zinc Limited Independent Director No. of Directorships in Public Limited Companies 6 Member/Chairperson in Committee(s) Member: 6 Chairperson: Nil Akhilesh Joshi Independent Director DIN: 01920024 Areas of Expertise Age Initial Date of Appointment Date of Re-appointment Tenure Till Tenure as on 31 March 2023 Shareholding Board Membership – Other Indian Listed Companies No. of Directorships in Public Limited Companies Member/Chairperson in Committee(s) Sunil Duggal3 Whole-Time Director and CEO DIN: 07291685 60 years 25 April 2021 NA 31 July 2023 1.11 years 20,233 shares None 1 Member: 1 Chairperson: Nil Areas of Expertise Profileavailableatwww.vedantalimited.com Notes • The details provided above are as on 31 March 2023. Further, following changes have taken place post the financial year till the date of report: 1. Mr. UK Sinha ceased to be Independent Director of Housing Development Finance Corporation Limited with effect from 29 April 2023 and appointed as Additional Director designated as Independent Director and Chairperson of Nippon Life India Asset Management Limited with effect from 01 May 2023. • • • 2. Mr. DD Jalan has been appointed as Trustee of Palghar Vipassana Trust with effect from 29 April 2023. 3. Shareholding of Mr. Sunil Duggal as on the date of report is 1,03,488 shares. The number of directorships (hereinafter referred to as "Mandates" or "Directorships") in Public Limited Companies includes Vedanta Limited. The number of directorships excludes Private Companies, Foreign Companies and Companies under Section 8 of the Act. For the membership and chairpersonship in Committees, only Audit Committee and Stakeholders’ 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 Companies, Foreign Companies, high value debt listed entities and Companies under Section 8 of the Act, have been excluded. In the Committee details provided, every chairpersonship is also considered as a membership. Mr. Akhilesh Joshi has been re-appointed as Non-Executive Independent Director of the Company for a 2nd and final term of 2 years with effect from 01 July 2022 till 30 June 2024. The re-appointment has been approved by the shareholders at the 57th AGM of the Company held on 10 August 2022. Ms. Padmini Sekhsaria has been re-appointed as Non-Executive Independent Director of the Company for a 2nd and final term of 2 years with effect from 05 February 2023 till 04 February 2025. The re-appointment has been approved by the shareholders through the postal ballot resolution dated 28 April 2023. Mr. DD Jalan has been re-appointed as Non-Executive Independent Director of the Company for a 2nd and final term of 3 years with effect from 01 April 2023 till 31 March 2026. The re-appointment has been approved by the shareholders through the postal ballot resolution dated 28 April 2023. • The Company has not issued any convertible instruments. Hence, none of the Directors hold any such instruments. 245 REPORT ON CORPORATE GOVERNANCE Declaration and Confirmations WithrespecttodirectorshipandmembershipoftheDirectors,itisherebyconfirmedthat: 1. None of the Directors: a) b) c) d) e) f) g) is a Director in more than ten (10) public limited companies in terms of Section 165 of the Act; holds 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; who serves as a Whole-Time Director of the Company, is serving as an Independent Director in more than three (03) listed entities pursuant to Regulation 17A(2) of Listing Regulations; is a member of more than ten (10) Board level committees of Indian public limited companies; isaChairpersonofmorethanfive(05)committeesacrossallcompaniesinwhichhe/sheisadirector; is 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; h) whoisservingasaNon-ExecutiveDirectoroftheCompany,hasattainedtheageofseventy-fiveyears. 2. TheCompanyhasreceiveddeclarationsfromalltheIndependentDirectorsoftheCompanyconfirmingthattheymeetthecriteriaof independence prescribed under the Act and Listing Regulations. Process for Board of Directors, Key Managerial Personnel and Senior Management Personnel ("SMP") Appointments The Board, with the support of the Nomination & Remuneration Committee ("NRC"), 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 NRC 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 NRC 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. We base our appointments to the Board on merit, and on objective selection criteria, with the aim of bringing a range of skills, knowledge and experience to Vedanta. This involves a formal and rigorous process to source strong candidates from diverse backgrounds and conducting appropriate background and reference checks on the shortlisted candidates. We aim to appoint people who will help us address the operational and strategic challenges and opportunities facing the Company and ensure that our Board is diverse in terms of gender, nationality, social background and cognitive style. As part of our appointment strategy, a mapping of potential names is conducted through recommendation from leading recruitmentfirms,seniorleadersandadvisorsinthe industry etc. Following the comprehensive mapping, the candidates are shortlistedbasedontheparameterssuchasqualification, background, expertise and experience in sectors relevant to the Company, ability to contribute to the Company’s growth and complementary skills in relation to the other directors and upon evaluation, recommended by the NRC to the Board. We believe that an effective Board combines a range of perspectives with strong oversight, combining the experience of Directors who have developed a deep understanding of our business over several years with the fresh insights of newer appointees. We aim for our Board composition to reflect the global nature of our business. Process for Selection and Appointment of New Directors: 01 02 03 04 Identification of Candidate to be appointed as Director Nomination & Remuneration Committee is responsible foridentificationand selection for appointment as a Director Recommendation by NRC Upon evaluation, the Committee makes recommendation to the Board for approval Board Approval The Board members after approval recommend the appointment to shareholders for approval Shareholders’ Approval The proposal is placed before shareholders for approval The criteria for nominating a candidate for directorship has been provided for in the Nomination & Remuneration Policy ("NRC Policy") of the Company which can be accessed at www.vedantalimited.com. 246 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Board Familiarisation and Induction Program Your Company has developed comprehensive induction processes for newly inducted directors which are tailored to their individual needs and intend to provide introduction to the Company’s vision, mission, values, operations, challenges, structureandrisks.Asapartofanongoingfamiliarisationprocess,thedirectorsareupdatedaboutthesignificant 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 and Responsibilities Briefingaboutrole,responsibilities,duties and obligations as member of the Board Plant/Site Visits Visits to plants and business locations are organised periodically to provide insights into the Company’s operations Interactive Sessions Interactive sessions with senior management, business and 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 vis-à-vis. Organisational structure, the Company’s history and milestones, Memorandum and Articles of Association, latest Annual Report, Code of Conduct, Investor Presentations, CEO/CFO reports, Minutes of previous meetings, Policies and Charters etc. Active Communication Channel An active communication channel with executive management which allows free flow of communication among directors Business and Regulatory Presentations Presentations on regulatory and business environment, Business Plan, risk management framework, internal audit and controls, cyber security, HSE, compliance reports, tax and treasury reports, key accounting matters, CSR, HR initiatives, Digitalisation and 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. ESG Training Education to the directors for deeper knowledge and understanding of key ESG issues and advancingthefieldofsustainabilitybyenabling incorporation of ESG in decision-making and operations. The detailed familiarisation program can be accessed on the Company’s website at www.vedantalimited.com. 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 below 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. 247 REPORT ON CORPORATE GOVERNANCE Leadership Succession Planning Strong Management in Place (“MIP") with right people in right roles Develop Top Talent for future leadership roles Objective Robust leadership pipeline - 3 successors for all key positions Talent Management Framework Identify Business Critical Key Roles Identify and Develop Top Talent Identify “Ready Now" Successors Identify Ready in 1-2 years and 3-5 years Successors Approach Successors prepared and ready to take over even before the position is vacant A “future-proof” workforce better prepared to thrive in dynamic conditions Outcome Greater organisational stability and resilience Directors/KMPs/SMPs conflicts of interest YourBoardhasinplaceawell-definedprocesswithrespecttodisclosureofinterestandassociatedmattersinaccordance with the guidelines prescribed by the Act 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 participate in the discussion nor vote on the matter in question. Independent Directors TheIndependentDirectorsoftheCompanyabidebythedefinitions/criteriaprescribedintheActandListingRegulations. Based on the disclosures received from all the Independent Directors and in the opinion of the Board, the Independent DirectorsfulfiltheconditionsspecifiedintheAct,theListingRegulationsandareindependentoftheManagement. The Board consist of four (04) Independent Directors, out of which one is a woman. Independent Directors 75% Men 25% Women Meeting of Independent Directors Regulation 25 of Listing Regulations and Schedule IV of the Act, read with the Rules thereunder mandate that the Independent Directors of the Company shall hold at least onemeetinginafinancialyear,withoutthepresenceof Non-Independent Directors and members of the Management. 248 At such meetings, the Independent Directors discuss, 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, Vice-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 Committees 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. During FY 2023, the Independent Directors met without the presence of management on 23 March 2023 chaired by Mr. UK Sinha. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Databank Registration of the Independent Directors PursuanttotheMCAnotificationdated22October2019, requisiteconfirmationshavebeenreceivedfromallthe Independent Directors of the Company with respect to registration on the Independent Directors' Databank. Performance Evaluation Corporate Governance encompasses a set of systems and practices to ensure that the Company’s affairs are being managed in a manner which ensures accountability, transparency and fairness in all transactions in the widest sense. The essence of Corporate Governance lies in promoting and maintaining integrity, transparency and accountability in the management higher grades. The Board recognisesthebenefitofevaluationexercisethatprovides meaningful insight to Board members on how they can improve their individual and collective contribution to the leadership and effectiveness of the Group. The Board works with the NRC to lay down the evaluation criteria for the performance of the Chairman, Vice-Chairman, CEO, the Board, Board Committees, and Executive/Non-Executive/Independent Directors through peer evaluation, excluding the director being evaluated. In line with the previous year, an external evaluation was carried out by an external third party through a secured online questionnaire platform to capture the views of each Director. The evaluation was carefully structured but pragmatic, designed to bring about a genuine debate on issues that were relevant, check on progress against mattersidentifiedinthepreviousevaluation,andassistin identifying any potential for improvement in the Board’s processes as given below: Tailored questionnares prepared by external agencyandconfirmed with the chairperson of NRC; Results of the evaluation compiled by the external agency without involvement of the management; Secured online platform for providing the responses; Sharing of evaluation results; and Outcome and feedback discussed at the NRC, Separate Meeting of Independent Directors and Board Meeting and Action Plan agreed. Board as a whole Board Committees Individual Directors Assessment of Company as a whole, its performance, its goals and functions of the Board; Quality of decision making and Board Practices; Composition, structure and quality; Board Meetings; Board Environment; Relationship with Senior Management; Progress against development areas. Committee Meetings and Information; Effectiveness of Committee in terms ofwell-defined policies and charters Committee Composition and Operation; SpecificCommittee responsibilities; 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. CEO Company Perfomance; Strategy and its execution; Leadership; Team building and Management Succession. Chairman and Vice-Chairman Demonstration of effective Leadership; Objectivity in discussions; Constructive communication and relationship with other directors; Contribution in enhancing Company's image; Availability and approachability to discuss sensitive matters. 249 REPORT ON CORPORATE GOVERNANCE Results of Performance Evaluation Individual Directors Evaluation Report shared with the Chairman, 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. Chairman/Vice-Chairman Evaluation Summary report shared with the Chairperson of NRC; Evaluation results also discussed in separate meeting of Independent Directors. CEO Evaluation Report shared with the Chairman, Vice-Chairman and Chairperson of NRC; The evaluation results also discussed in separate meeting of Independent Directors. Board Self Evaluation Report shared with all Directors; Results discussed in meeting of NRC and Board and separate meeting of Independent Directors. Committee Evaluation 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 with overall positive ratings that the Board as a whole is functioning as a cohesive body which is well engaged with different perspectives. It was indicated that the Board is functioning with appropriate mix of competencies that continue to demonstrate a collaborative and constructive mindset, creating a conducive environment at Board meetings for participation and challenge. The Committees are working effectively towards their duties as all the important issues which in addition to Committee’s terms of reference are brought up and discussed in the meetings. The consistency in maintaining the balance between short-term and long-term goals and the clarity of the strategy together with the understanding of the capabilities for implementing and monitoring it were regarded highly. The effectivenessreviewidentifiedsomeopportunitiesforthe Board which will be acted upon going forward. Meetings of the Board and 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, Audit & Risk Management Committee and the NRC 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 arefinalisedwiththeinputsfromtheBoardmembersandareapprovedbytheBoard.Additionalagendamattersaretakenupon requirement basis. 250 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Circulation of Agenda TheAgendaisfinalisedbytheCompanySecretary,indiscussionwiththeCFO,CEO,Vice-ChairmanandChairman; All the Agenda papers are disseminated electronically on a real-time basis. The papers are uploaded on a secured online platform specificallydesignedforthispurpose,therebyeliminatingcirculationofprintedagendapapers.Theonlineplatformalsoenablesthe 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 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. Information presented at meetings 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 Act, Listing Regulations and other applicable laws; The management team is invited to present the performance on key areas such as the Company’s major business segments and their operations, subsidiary performance and key functions from time to time. Conduct and recording of meetings 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 members and invitees at various locations across the globe; All the meetings conducted through telepresence are recorded and stored as per statutory requirements. The Company Secretary records minutes of all the Board and Committee meetings. 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. Board and Executive Leadership Remuneration Policy TheRemunerationPolicyissignificantinensuringthat 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 EDs and the senior management group are aligned with those of shareholders, to build a sustainable performance environment. Remuneration Components: TheEDremunerationhastwocomponents:fixedpayand annual variable pay including stock incentives (performance linkedincentive).Thefixedcomponentisbasedupon 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 andcontributionstobothshort-termandlong-termfinancial 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 subjecttothelimitnotexceeding1%ofthenetprofitsof the Company. Further, it may be noted that no stock options were issued to the Non-Executive Independent Directors during the reporting year. The details of remuneration paid/payable to the Directors during FY 2023 are as follows: 251 REPORT ON CORPORATE GOVERNANCE - - - - - - - - - - Remuneration paid or payable to Directors for the year ended 31 March 2023 Name of the Director Relationship with other Directors (1) Sitting Fees Salary and Perquisites(6) Provident, and Superannuation Funds Commission to non- executive directors/ performance incentive for the Executive Directors(7) Total Vedanta Limited, ESOS 2019, ESOS 2020, ESOS 2021, ESOS 2022(8) NON-EXECUTIVE CHAIRMAN Anil Agarwal Refer Note(1) 6,00,000 - - - 6,00,000 EXECUTIVE DIRECTORS Navin Agarwal(2) Refer Note(1) Sunil Duggal None - 12,80,48,080 - 9,51,78,408 7,50,000 7,50,000 8,56,50,000 21,44,48,080 5,02,00,000 14,61,28,408 5,20,578 TOTAL - 22,32,26,488 15,00,000 13,58,50,000 36,05,76,488 INDEPENDENT NON-EXECUTIVE DIRECTORS UK Sinha DD Jalan(3) Akhilesh Joshi(4) Padmini Sekhsaria TOTAL None None None None 27,00,000 23,00,000 19,00,000 10,00,000 79,00,000 NON-INDEPENDENT NON-EXECUTIVE DIRECTORS Priya Agarwal(5) Refer Note(1) TOTAL GRAND TOTAL 11,00,000 11,00,000 - - - - - - - - - - - - - - 75,00,000 1,02,00,000 75,00,000 75,00,000 75,00,000 98,00,000 94,00,000 85,00,000 3,00,00,000 3,79,00,000 1,00,00,000 1,11,00,000 1,00,00,000 1,11,00,000 96,00,000 22,32,26,488 15,00,000 17,58,50,000 41,01,76,488 5,20,578 Notes: 1. Ms. Priya Agarwal is the daughter of Mr. Anil Agarwal and Mr. Anil Agarwal is the elder brother of Mr. Navin Agarwal. 2. Sitting fees and commission paid to Mr. Navin Agrawal by Hindustan Zinc Limited ("HZL"), a subsidiary of the Company, was `4,25,000 and `28,88,000 respectively during FY 2023 not included above. Mr. Navin Agarwal has been awarded 5,13,260 units in FY 2020, 4,12,444 units in FY 2021, 3,51,000 units in FY 2022 and 2,95,000 units in FY 2023 under Long Term Incentive Plan of Vedanta Resources Limited ("VRL"). Additionally, Mr. Navin Agarwal was paid the following amounts from VRL: - GBP 10,91,432 on account of vesting of VRL Cash Based Plan 2019 on 29 November 2022 upon achievement of performance parameters. 3. 4. 5. 6. - GBP 85,000 as commission for his services to VRL Board. Sitting fees and commission paid to Mr. DD Jalan by Bharat Aluminium Company Limited ("BALCO"), a subsidiary of the Company, was `6,00,000 and `14,96,000 respectively during FY 2023 not included above. Sitting fees and commission paid to Mr. Akhilesh Joshi by HZL was `7,25,000 and `29,40,000 respectively during FY 2023 not included above. Sitting fees and commission paid to Ms. Priya Agarwal by HZL was `1,00,000 and `6,12,000 respectively during FY 2023 not included above. Value of Perquisites as per rule u/s 17(2) of Income-tax Act, 1961 does not include perquisite value of Superannuation. 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 KMP are not included above. 7. The performance incentive to Executive Directors is for FY 2022 which was paid during FY 2023. 8. The ESOS 2019, Cash Plan 2019 and VRL LTIP 2019 options/units vested upon completion of performance period with approval from NRC on 27 January 2023. The ESOS 2020, Cash Plan 2020 and VRL LTIP 2020 options/units will vest/be exercise after 31 months from date of grant i.e. on 06 November 2023, based on achievement of performance conditions. The ESOS 2021, Cash Plan 2021 and VRL LTIP 2021 options/units will vest/be exercise after 36 months from date of grant i.e. on 01 November 2024, based on achievement of performance conditions. The ESOS 2022, Cash Plan 2022 and VRL LTIP 2022 options/units will vest/be exercise after 36 months from date of grant i.e. on 01 November 2025, based on achievement of performance conditions. Weherebyconfirmthat: • Thetotalmanagerialremunerationpaid/payableforFY2023doesnotexceed11%ofthenetprofitsoftheCompany. The total remuneration received by Whole-Time Directors and Independent Directors of the Company does not exceed 10%and1%oftheNetProfitsoftheCompany,respectively. Mr. Navin Agarwal, Executive Vice-Chairman and member of Promoter Group, does not receive remuneration in excess of `5croreor2.5%oftheNetProfitsoftheCompany,whicheverishigher. None of the Non-Executive Directors, have received remuneration exceeding 50% of the total annual remuneration payable to all Non-Executive Directors. • • • 252 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Board Committees The Board has constituted various sub-committees with primary objective of maintaining strong business fundamentals and deliveringhighperformancethroughrelentlessfocusonthesignificantaffairsoftheCompanyacrossallitsgeographies. EachCommitteeissetupbytheformalapprovaloftheBoardandisguidedbyitsrespectivecharterwhichclearlydefines their purpose, roles, and responsibilities. The Chairperson of the respective Committees 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 itsreviewandnoting.TheCompanySecretaryofficiatesastheSecretaryoftheseCommittees. All the Statutory Committees of the Board are chaired by the Independent Directors. Composition of Committees as on 31 March 2023 All the Committees have optimum composition pursuant to the Listing Regulations. Below is the composition of the Committees as on 31 March 2023: Name of Director Board Audit & Risk Management Committee Nomination & Remuneration Committee Stakeholders’ Relationship Committee Corporate Social Responsibility Committee Committee of Directors ESG Committee Mr. Anil Agarwal Mr. Navin Agarwal Mr. UK Sinha Mr. DD Jalan(1) Ms. Padmini Sekhsaria Mr. Akhilesh Joshi Ms. Priya Agarwal Mr. Sunil Duggal Member Chairperson Notes: 1. Mr. DD Jalan has been appointed as Member of the Committee of Directors effective 06 July 2022. Board and Committee Meetings for FY 2023 Meeting Board Q1 Apr-Jun 28 April 2022 Q2 Jul-Sep 06 July 2022 28 July 2022 Q3 Q4 Oct-Dec 28 October 2022 Audit & Risk Management Committee 27 April 2022 27 July 2022 28 October 2022 Nomination & Remuneration Committee 28 April 2022 06 July 2022 28 October 2022 Stakeholders’ Relationship Committee Corporate Social Responsibility Committee ESG Committee Committee of Directors - 27 April 2022 - 28 April 2022 04 June 2022 28 July 2022 27 July 2022 - 22 September 2022 28 September 2022 - 27 October 2022 - 22 November 2022 09 December 2022 02 March 2023 27 March 2023 The maximum interval between any two Board meetings did not exceed 120 days, as prescribed in the Act and Listing Regulations. 253 Jan-Mar 19 January 2023 27 January 2023 28 March 2023 19 January 2023 27 January 2023 04 March 2023 10 March 2023 28 March 2023 27 January 2023 28 March 2023 28 March 2023 - 28 February 2023 30 January 2023 REPORT ON CORPORATE GOVERNANCE Resolution passed by Board of Directors/Committees through Circulation 20 Board of Directors 10 02 43 Audit & Risk Management Committee Nomination & Remuneration Committee Committee of Directors Attendance for Board and Committee Meetings held during FY 2023 Name of Director Whether attended AGM on 10 August 2022 Board Meeting Audit & Risk Management Committee Nomination & Remuneration Committee Stakeholders' Relationship Committee Corporate Social Responsibility Committee ESG Committee Committee of Directors (Attended/ Entitled) (Attended/ Entitled) (Attended/ Entitled) (Attended/ Entitled) (Attended/ Entitled) (Attended/ Entitled) (Attended/ Entitled) Mr. Anil Agarwal Mr. Navin Agarwal Ms. Priya Agarwal Mr. UK Sinha Mr. Dindayal Jalan Ms. Padmini Sekhsaria Mr. Akhilesh Joshi Mr. Sunil Duggal Yes Yes Yes Yes Yes No Yes Yes 3/7 7/7 7/7 7/7 7/7 6/7 7/7 7/7 - - - 8/8 8/8 - 8/8 - 3/6 - - 6/6 6/6 - - - - 2/2 2/2 2/2 - 2/2 - - 2/2 2/2 2/2 2/2 - - 2/2 2/2 - - 2/2 2/2 - 8/8 - - 6/6 - 8/8 Pursuant to Section 167 of the Act, a Director shall incur disqualification if he/she does not meet the minimum attendance criteria and absents himself/herself from all the meetings of the Board of Directors held during a period of twelve months with or without seeking leave of absence from the Board. All Directors of the Company have duly met the attendance criteria during FY 2023. Audit & Risk Management Committee 3 Members 8 Meetings 100% Independent 100% Attendance 2.92 Average Tenure be called as the Audit & Risk Management Committee. Parallelly, the management team led by the CEO and Management Assurance Services (“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 to the Audit & Risk Management Committee twice a year on the same. A separate section on principal risks and uncertainties governing the business is covered in the Management Discussion and Analysis Report. UK Sinha Chairperson Akhilesh Joshi Member DD Jalan Member The Audit & Risk Management Committee is one of the main pillars of the corporate governance of the Company. The primary function of the Audit & Risk Management Committee includes monitoring and providing effective supervisionofthefinancialreporting;reviewingthe efficacyoftheriskmanagementsystems;andmaintaining robustnessofinternalfinancialcontrolsandrisk 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 programs while monitoring the qualifications,expertise,resources,andindependenceof both the internal and external auditors; and assessing the auditors’ performance and effectiveness each year. Effective 06 June 2020, the Audit Committee and the Risk Management Committee have been consolidated to 254 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The members of the Audit & Risk Management Committee comprise only Independent Directors to ensure the independenceintermsoffinancialopinionsandforbetter value addition. Each of the member of the Committee brings immense experience and possess strong accounting andfinancialmanagementknowledge.Incarryingoutits oversightresponsibilitiestransparentlyandefficiently,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, presentationandintegrityoftheCompany’sfinancial statements including consolidated statements, accounting, andfinancialreportingprinciples;internalcontrolover financialreporting;andallproceduresaredesignedto 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 Accountants (FRN: 301003E/E300005), the Company’s Statutory Auditor, is responsible for performinganindependentauditofthefinancialstatements and expressing an opinion on the conformity of these financialstatements. The Audit & Risk Management Committee covers a wide range of topics for deliberations and discussions in its meetings. These includes standing items that the Committee considers as a matter of course, typically in relationtothequarterlyunauditedfinancialstatements, accounting policies and judgements and reporting matters, andanarrayofsignificantissuesrelevanttoVedanta’s control framework. The Committee plays a vital role in evaluating the related party transactions, scrutinising inter-corporate loans and verify that the systems for internal control are adequate and are operating effectively. The Committee, in its meetings, in addition to the members also has the following set of invitees: TheChiefExecutiveOfficer, ChiefFinancialOfficer, Group Assurance Head are permanent invitees The representatives of Statutory Auditors are permanent invitees Audit & Risk Management Committee Meeting Invitees The Business and Operational Heads are invited to the meetings, as and when required Representatives of Executives from several departments including Accounts, Finance, Corporate Secretarial and Internal Audit 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 theaccountingprinciples,thereasonablenessofsignificant judgementandtheadequacyofdisclosuresinfinancial statements. On a quarterly basis, the Audit & Risk Management Committeereviewstheconfirmationofindependencemade 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 details and biographies of the Committee members are set out in the Board and Committees section of this Annual Report.TheCommitteefulfilstherequirementsasspecified under the provisions of the Act and Listing Regulations with respecttothecomposition,independence,andfinancial expertise of its members. The schedule of Committee meetings held during FY 2023 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 members agreed that its overall performance had been effective during the year. Review of Financial Results for FY 2023 The Committee reviewed both Standalone and Consolidated financialstatementsforFY2023andbasedonitsreview and discussions with management, the Committee was satisfiedthatthefinancialstatementswerepreparedin accordance with applicable accounting standards and fairlypresentedtheGroup’sfinancialpositionandresults forthefinancialyearended31March2023.TheCommittee thereforerecommendedthefinancialstatementsforthe financialyearended31March2023fortheconsideration and approval of the Board. The Board accepted all the recommendations made by the Audit & Risk Management Committee during FY 2023. 255 REPORT ON CORPORATE GOVERNANCE The utilisation of Audit & Risk Management Committee’s time along with its major responsibilities is detailed below:- 10% 20% 10% 30% Oversight of Financial Reporting Internal Audit, Internal Financial Controls Risk Management and Cyber Security 30% Auditors Governance Oversight of Financial Reporting OversightoftheCompany’sfinancialreportingprocessanddisclosureofitsfinancialinformationtoensurethatthefinancial statementsaretrue,fair,sufficientandcredible; Discussandreview,withthemanagementandauditors,theannual/quarterlyfinancialstatementsbeforesubmissiontotheBoard; Reviewofkeysignificantissues,taxandlegalreportsandmanagement’sreport; Reviewofmanagement’sanalysisofsignificantissuesinfinancialreportingandjudgmentsmadeinpreparingthefinancial statements; DiscusswiththeManagementregardingpendingtechnicalandregulatorymattersthatcouldaffectthefinancialstatements,and updates on management’s plans to implement new technical or regulatory guidelines; Review of off-balance-sheet structures, if any; and ReviewofDraftlimitedreview/auditreportsandqualifications,ifany,therein. Internal Audit and Internal Financial Control Reviewofinternalauditobservationsandmonitoringofimplementationofanycorrectiveactionsidentified; Reviewingtheinternalfinancialcontrolframework; Review of the performance of the internal audit function and internal audit plan; Considerationofstatutoryauditfindingsandreviewofsignificantissuesraised; Reviewing Related Party Transactions; and Managementdiscussionandanalysisoffinancialconditionandresultsofoperations. Risk Management and Cyber Security Reviewoftheriskmanagementframework,riskprofile,significantrisks,riskmatrixandresultingactionplans; Reviewofthesignificantauditriskswiththestatutoryauditorduringinterimreviewandyear-endaudit; 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 Committee/Board, if any; and Evaluationofsignificantandcriticalriskexposuresforassessingmanagement’sactiontomitigateormanagetheexposuresina timely manner. Auditors Appointment of Statutory, Internal, Secretarial, Cost and Tax auditors, recommending their fees and reviewing their audit reports; 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; and Independent meetings with statutory auditors. 256 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Governance Reviewing minutes, summary reports of subsidiary companies 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; and Reviewing feedback from the Audit & Risk Management Committee’s performance evaluation. Nomination & Remuneration Committee UK Sinha Chairperson Anil Agarwal Member DD Jalan Member The 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 and 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. 3 Members 6 Meetings 67% Independent 83% Attendance 2.56 Average Tenure As on 31 March 2023, the NRC comprises of two (02) 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 AnnualReport.TheCommitteefulfilsthecomposition requirement as required under the provisions of Act 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 2023 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 later in the report, the NRC assessed its own effectiveness. The members of the NRC agreed that its overall performance had been effective during the year. The Board accepted all the recommendations made by the Committee in FY 2023. 257 REPORT ON CORPORATE GOVERNANCE The utilisation of the Committee’s time along with its major responsibilities is detailed below: 15% 20% 40% 25% Board Composition and Nomination Compensation Evaluation of the Board, its Committees and Individual Directors Succession Planning and Governance 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; Formulatethecriteria/policyforappointmentofDirectors,KMPandSMP(asdefinedbytheNRC)inaccordancewithidentified criteria; Review and appoint shortlisted candidates as Directors, KMPs and SMP (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; and FormulateandrecommendtotheBoard,thecriteriafordeterminingqualifications,positiveattributesandindependenceofaDirector. Compensation Recommend to the Board a policy relating to the remuneration of directors (both Executive and Non-Executive Directors), KMP and SMP; Ensuringthatthelevelandcompositionofremunerationisreasonableandsufficienttoattract,retainandmotivateDirectorstorunthe Company successfully; Ensuring relationship of remuneration to performance is clear and meets appropriate performance benchmarks; EnsuringremunerationtoDirectors,KMPandSMPinvolvesabalancebetweenfixedandincentivepayreflectingshortandlong-term performance objectives appropriate to the working of the Company and its goals; DetermineremunerationbasedontheCompany’sfinancialposition,trendsandpracticesonremunerationprevailingintheindustryas considered appropriate by the NRC; and ReviewoftheCompany’sShareBasedEmployeeBenefitScheme(s),ifany,includingoverseeingtheadministrationoftheScheme(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. Evaluation of the Board, its Committees and Individual Directors 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; and 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. Succession Planning and Governance Review of succession planning for Executive, Non-Executive Directors and other SMP; 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; and To develop and recommend a policy on Board Diversity. 258 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Equal Opportunity Policy Vedanta provides equal opportunity to all persons. There is no unfair treatment in relation to the employment, promotion or other related issues or termination of the employment for reasons of gender or disability. Your Company recognises the value of diverse workforce and has reinforced its approach to diversity and inclusion by adopting Equal Opportunity Policy (“Policy”). The Policy aimed 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 (“CSR Committee") 4 Members 2 Meetings 75% Independent 100% Attendance 3.41 Average Tenure 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 2023. The utilisation of the Committee’s time along with its major responsibilities is detailed below: Akhilesh Joshi Chairperson Priya Agarwal Member UK Sinha Member Padmini Sekhsaria Member 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 benefittingrelationshipwithallourstakeholders.Itisthis 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 policy, we regularly engage with government agencies, development organisations, corporates, civil societies and community-based organisations to carry our durable and meaningful initiatives. In this regard, the role of CSR Committee of the Company is to formulate and monitor the CSR Policy of the Company along with formulation of Annual Action Plan and recommending the CSR Budget. The additional disclosures in compliance with Companies (Corporate Social Responsibility) Amendment Rules, 2021 forms part of this Annual report. 40% 15% 45% The schedule of CSR meetings held in FY 2023 along with its members’ attendance records are disclosed in the earlier section of the Corporate Governance Report. CSR Policy CSR Activities CSR Budget 259 REPORT ON CORPORATE GOVERNANCE CSR Policy Formulate and recommend to the Board, the CSR Policy and the activities to be undertaken; and 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 status to ensure achievement; and Ensure the value, ethics and principles are upheld in all its activities. CSR Budget Decide and recommend to the Board, the amount of expenditure to be incurred on CSR activities; Formulation of Annual Action Plan; Evaluate and monitor expenditure towards CSR activities in compliance with the Act; and Evaluation of need and impact assessment of the projects undertaken by the Company. Stakeholders' Relationship Committee 4 Members 2 Meetings 75% Independent 100% Attendance 2.58 Average Tenure 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 2023. The utilisation of the Committee’s time along with its major responsibilities is detailed below: 40% 15% 45% Shareholder Grievances Enhancing Investor Relations/Shareholder Experience/Services Shareholding Pattern DD Jalan Chairperson UK Sinha Member Padmini Sekhsaria Member Sunil Duggal Member 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 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 and Transfer Agent (“RTA"); monitoring of shareholding movements etc. The details of SRC composition and meetings are given in the earlier section of this report. 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 260 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 ofannualreport,non-receiptofdeclareddividend,issueofnew/duplicatesharecertificates,generalmeetingetc.; Review from time to time, the shares and dividend that are required to be transferred to the IEPF Authority; and Review and closure of all Investor cases. Enhancing Investor Relations/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 email IDs, PAN and 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 RTA of the Company; and To frame IR Strategy, perceptions, actively engaging and communicating with major shareholders of the Company. Shareholding Pattern Review of shareholding distribution; Review of movement in shareholding pattern; and 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’sRTAentertainsandresolvesinvestorgrievancesinconsultationwiththeComplianceOfficer.Allgrievancescan be addressed either to RTA or to the Company directly. An update on the status of complaints is quarterly reported to the Boardandisalsofiledwithstockexchanges. The details of shareholders’ complaints during FY 2023: S. No. Nature of complaints/letters and correspondence Received Replied Closing Balance Complaints received through Stock Exchanges, SEBI and Ministry of Corporate Affairs 1 2 3 Non-receipt of dividends Non-receipt of shares Miscellaneous Letters and Correspondence 1 Letters and correspondence from shareholders TOTAL Note: The Company received Nil complaints w.r.t. Non-Convertible Debentures. Investor Complaints 339 6 42 339 6 42 30,300 30,687 30,300 30,687 0 0 0 0 0 140 120 100 80 60 40 20 0 9 2 1 9 2 1 6 8 4 8 7 1 1 9 1 1 6 1 4 1 7 0 7 0 Received Replied Q1 0 0 2 6 2 8 2 Closing Balance Received Replied Q2 0 0 0 Closing Balance 2 1 2 1 2 2 2 0 0 8 2 8 2 0 0 0 Received Replied Q3 Closing Balance Received Replied Q4 Closing Balance Non-receipt of dividend Non-receipt of shares Miscellaneous 261 REPORT ON CORPORATE GOVERNANCE Investor Grievance Redressal Management Investor Requests/ Grievances through SEBI Scores Stock Exchange(s) RTA Directly to company Resolved in time, by the RTA (on behalf of the Company) or company directly Reported to SRC Reported to Stock Exchanges 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. ESG Committee 4 Members 2 Meetings 50% Independent 100% Attendance 2.28 Average Tenure kept a track on how our ESG ratings are improving, given that the ratings from agencies such as MSCI, Sustainalytics, and S&P have an influence on the Group’s overall reputation andaccesstofinance.TheBoardhasappreciatedthe positive movement that has been made in all of the important ESG rating platforms – by not just Vedanta Limited, but also Hindustan Zinc and Vedanta Aluminium. Positive developments have included securing Board approvals for more 838 MW of RE RTC power to be deployed across our businesses and the introduction of an industry- leading EV purchase policy for all our full-time-employees. Safety of our workforce and BP remains a high focus area by Board and substantial time is spent on the topic of safety understanding long-term action by management on each catastrophic incidents. The details of Committee composition and meetings are provided in earlier section of this report. UK Sinha Chairperson Priya Agarwal Member Sunil Duggal Member Akhilesh Joshi Member The ESG Committee of the Board plays a central role in ensuring that material ESG risks to Vedanta’s business are addressed in a systematic and timely manner. It meets once in six months and is chaired by an independent director of the Board. It also has representation from executive Board members and select KMP have standing invitations to the meetings. This ensures that Board direction is effectively translated into corporate action. In FY 2023, the Board focused on the following material issues for the organisation: safety of the workforce, decarbonisation and managing carbon risks, effective management of our tailings facilities, and ensure that the Company remains compliant to environmental regulations. The Board has been happy to note the progress being made to develop a comprehensive ESG governance, performance and monitoring system. In line with the Group’s ambition of “Transforming for Good”, the Board has routinely sought updates on the progress being made on all nine aims – particularly in the topics cited above. The Board has also 262 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The utilisation of the Committee’s time along with its major responsibilities is detailed below: 50% 50% ESG Performance ESG Governance ESG Performance Safety Oversight on fatality investigations and learning dissemination across the organisation; Senior leadership involvement in driving safe work culture; and Engagement with expert agencies to improve systemic response to unsafe work conditions. Climate and Decarbonisation Oversight on decarbonisation roadmap for the business, including long-term projections and scenario-planning; Review of semi-annual GHG performance; Budgetary allocation for decarbonisation pathway; and Inclusion of Scope 3 emission calculations for business. ESG Governance Review of progress on all nine aims and select KPIs; Review of annualised roadmap for all nine aims; Oversight and guidance on future plans to deliver on Vedanta's ESG roadmap; Review of progress on Vedanta's ESG ratings; and Suggestions to enhance stakeholder engagement and communication. Other Committees 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 significantmattersoftheCompany.TheminutesofthemeetingofeachcommitteeareplacedbeforetheBoardforitsnoting. TheBoardalsoformulatesseveralprojectspecificsub-committeesfromtimetotimeinordertosecurespeedy 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. As on 31 March 2023, the internal Board committees of the Company have been elucidated below: Committee of Directors Navin Agarwal Chairperson Sunil Duggal Member DD Jalan* Member *Mr. DD Jalan has been appointed as Member of Committee of Directors with effect from 06 July 2022. The Committee of Directors ("COD") supports the Board by considering, reviewing and approving all borrowing, investments,finance,bankingandtreasuryrelated 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. 263 REPORT ON CORPORATE GOVERNANCE The Committee is entrusted with the following responsibilities: Financial Matters ReviewandapproveallpoliciesrelatedtothefinancialmattersoftheCompanyinteraliaInvestmentpolicy,ForeignExchangePolicy, Commodity Hedging Policy, Banking Authorisation Policy. Investment 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; and 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. Treasury Consider,reviewandapprovealltheborrowingproposalsincludingfinancingproposalswithintheoveralllimitsapprovedbytheBoard 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; and Consider, review and approve treasury related proposals within the overall limit approved by the Board. Security related proposals Review,considerandapprovesecuritiesrelatedproposalsincludingallotmentofsecurities,issuanceofduplicatesharecertificates upon split, consolidation, renewal, remat; and 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.; and Subsidiary Governance and oversight. The details of the meetings of COD are given in the earlier section to this report. Share and Debenture Transfer Committee The Share and 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 31 March 2023 is provided below: Share and Debenture Transfer Committee: 1. DD Jalan, Member 2. Anupam Kumar, Member* 3. Jagdeep Singh, Member * Mr. Ajay Goel ceased to be a member of Share and Debenture Transfer Committee with effect from close of business hours on 09 April 2023. Mr. Anupam Kumar, Dy. Chief Financial Officer of the Company has been inducted as the Member of the Share and Debenture Transfer Committee with effect from 12 May 2023. 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 delegated authorities; managing risk; and monitoringtheoperationalandfinancialperformance of the Company. Authority is delegated by the Executive Committee to the respective CEOs of each of the businesses. The Group CEO 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, benchmarktechnology,andcost-efficientpractices.The design and culture of our organisation is cohesively built in a manner which aims to ensure that the Group has the right MIP to drive the business and take the organisation to the next level. 264 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS In line with our long-term vision to create value, a fully empowered Group Management Committee has been formed effective01April2020comprisingoftheGroupCFO,CEO,ChiefHumanResourceOfficer(“CHRO") and Chief Commercial Officer(“CCO"). 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 entrustedwithdrivingallsignificantinitiativesandempoweredbytheBoardtoestablishoperationalefficiencyinguiding business strategy and achieving strong performance targets. General Body Meetings Annual General Meetings/Court Convened Meetings The details of the last three years Annual General Meetings/Court Convened Meeting through Video Conferencing (“VC")/ Other Audio-Visual Means (“OAVM") are as follows: Year Location Date and Time Special Resolutions passed 30 September 2020 at 3:00 p.m. IST No Special resolution passed 10 August 2021 at 3:00 p.m. IST Re-appointment of Mr. UK Sinha as an Independent Director for the 2ndandfinaltermof3years. 10 August 2022 at 3:00 p.m. IST Re-appointment of Mr. Akhilesh Joshi as an Independent Director for 2ndandfinaltermof2years. Links Notice Outcome FAQs Notice Outcome Video Chairman Speech FAQs Speaker Criteria Notice Outcome Video Chairman Speech FAQs Speaker Criteria 55th Annual General Meeting 2019-20 VC/OAVM 56th Annual General Meeting 2020-21 VC/OAVM 57th Annual General Meeting 2021-22 VC/OAVM NCLT Convened Meeting 2022-23 VC/OAVM 11 October 2022 at 3:00 p.m. IST Scheme of Arrangement between Vedanta Limited and its Shareholders under Section 230 and other applicable provisions of the Companies Act, 2013 read with Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 Notice Outcome Video FAQs Speaker Criteria Postal Ballot The details of the Business transacted through Postal Ballot during FY 2023 are as follows: The Company had sought approval of the shareholders by way of Special Resolutions through notice of postal ballot dated 28 March 2023. The details of the same are as follows: Date of Postal Ballot Notice 28 March 2023 Voting Period 30 March 2023 to 28 April 2023 Date of passing the resolution(s) 28 April 2023 Date of declaration of result 29 April 2023 Web link Resolution(s) Notice Outcome 1. 2. Re-appointment of Ms. Padmini Sekhsaria as Non-Executive Independent Director of the Company for a 2ndandfinaltermof2yearseffectivefrom05February2023to04February2025;and Re-appointment of Mr. DD Jalan as Non-Executive Independent Director of the Company for a 2nd and finaltermof3yearseffectivefrom01April2023to31March2026. Type of Resolution(s) Special Mr. Upendra C. Shukla (Membership No. FCS No. 2727, CP No. 1654), Practising Company Secretaries, was appointed as the Scrutiniser to scrutinise the postal ballot process by voting through electronic means only (remote e-voting) in a fair and transparent manner. 265 REPORT ON CORPORATE GOVERNANCE The details of the voting results are as follows: Description of the Resolution Votes in favour of the resolution Votes against the resolution Re-appointment of Ms. Padmini Sekhsaria as an Independent Director for a 2ndandfinaltermof2years Re-appointment of Mr. DD Jalan as an Independent Director for a 2ndandfinaltermof3years Number of holders Number of valid votes cast (Shares) Percentage of total number of valid votes cast Number of holders Number of valid votes cast (Shares) Percentage of total number of valid votes cast 4,119 3,23,50,02,401 99.58% 365 1,35,01,155 0.42% 3,643 2,71,70,27,292 93.27% 832 19,60,51,422 6.73% The resolutions were duly passed by the Shareholders with requisite majority on 28 April 2023. Procedure for postal ballot: The postal ballot was carried out as per the provisions of Sections 108 and 110 and other applicable provisions of the Act, read with the Rules framed thereunder and General Circular nos. 14/2020, 17/2020, 02/2021, 21/2021, 02/2022 and 10/2022 dated 08 April 2020, 13 April 2020, 13 January 2021, 14 December 2021, 05 May 2022 and 28 December 2022 respectively issued by MCA from time to time. Proposal for Postal Ballot: There is no immediate proposal for any resolution through postal ballot. SHAREHOLDERS Means of Communication Financial Results Annual Report The quarterly/half-yearly/annual results along with audit/ limited review report, press release and investor presentation isfiledwiththestockexchangesimmediatelyafterthe approval of the Board; The results are also published in at least one prominent national and one regional newspaper having wide circulation vis-à-vis Business Standard, Financial Express, Economic Times and Maharashtra Times, within 48 hours of the conclusion of the meeting; Quarterlyfinancialresultsaresenttoshareholderswhose email ids are registered with the RTA; Financial results are also uploaded on the Company’s website and can be accessed at www.vedantalimited.com. 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 email ids were registered with the Company. Shareholder Satisfaction Survey As a part of our constant endeavor 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 News Releases Chairman Communique 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. 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. Institutional Investor/Analysts Presentation Thescheduleofanalyst/investormeetsarefiledwiththe stock exchanges and the presentations are uploaded on the website of the Company at www.vedantalimited.com; The transcripts and audio/video recordings of post earnings/ quarterlycalls/productionreleasearefiledwiththeStock Exchanges and the same are uploaded on the website of the Company at www.vedantalimited.com. Access to Documents Shareholders can also access the details of Corporate Governance Policies and Charters, Memorandum and Articles of Association, Financial information, Shareholding information, details of unclaimed dividends and shares transferred/liable to transfer to IEPF, etc. on the Company’s website. 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 financialresults,policiesandcodes,stockexchangefilings, press releases, annual reports, SEC Filings etc. 266 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Appeal to Shareholders Updation of PAN Bank Mandate and Contact Details Shareholders are requested to update their email 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. The shareholders having physical units can avail the facility to update the details on the website of the Company at www.vedantalimited.com. and the demat holders can contact their respective depository participant for updating the details. SEBIvideCircularSEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2021/655dated03November2021,introducedcommonandsimplified norms for processing investor’s service request wherein all members holding securities of the Company in physical mode were mandatorily required to furnish the PAN and Nomination (for all eligible folios) to the Company’s RTA by 31 March 2023 which has been further extended to 30 September 2023 vide SEBI Circular SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/37 dated 16 March 2023. Shareholders are requested to furnish the above details to enhance the ease of doing business in the securities market. A letter was also sent to the shareholders detailing the above requirements. The forms can be downloaded from the website of the Company at www.vedantalimited.com and also from the website of the RTA atwww.kfintech.com. Unclaimed Dividend/Shares 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. The Company has also uploaded the details of unpaid and unclaimed dividend amounts lying with the Company on the Company’s website at www.vedantalimited.com. Pursuant to the provisions of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, the shares on which dividend remains unpaid/unclaimed for seven consecutive years or more shall be transferred to the IEPF after giving due notices to the concerned shareholders. Accordingly, the details of equity shares transferred are also available on the Company’s website at www.vedantalimited.com. Registration of Nomination Registrationofnominationmakeseasyfordependentstoaccessyourinvestmentsandsetouttheproportionofyourbenefitstothe nominees. The Company has duly provided the facility of updation of nominees to the shareholders. The shareholders holding physical units can submit the nomination form SH-13 which is available on the website of the Company at www.vedantalimited.com and the demat holders can contact their respective depository participant for the necessary updations. Conversion of Securities into Dematerialised form 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. SEBI vide Circular SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2022/8 dated 25 January 2022 issued guidelines for Issuance of Securities in dematerialised form in case of investor service request. In accordance with the circular, the Company post 25 January 2022 shall issue the securities in dematerialised form onlywhileprocessingtheinvestors’requestsforIssueofduplicatecertificate,Claimfrom UnclaimedSuspenseAccount,Renewal/Exchange/Endorsement/Sub-division/Splittingofcertificate,Consolidationofcertificates/ folios, Transmission and Transposition. ThesecurityholdershallsubmitdulyfilledISR-4totheRTAforprocessingofservicerequests.Theformisavailableatthewebsiteof the Company at www.vedantalimited.com and also at the website of the RTA at www.kfintech.com. Considering that SEBI has disallowed the physical transfer/issuance of equity shares in physical mode, shareholders are requested to convert their equity holding into dematerialised form for ease of dealing in securities markets and processing the service requests. 267 REPORT ON CORPORATE GOVERNANCE Correspondence Details All the Share Transfer, Dividend Payment Requests and Investors Related queries, the shareholder can directly contact to our RTA KFin Technologies Limited (formerly KFin Technologies Private Limited) Unit: Vedanta Limited Selenium Building, Tower-B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana, India, 500 032 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 Investor Relations Ms. Prerna Halwasiya CompanySecretaryandComplianceOfficer Vedanta Limited Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003 Tel: +91 011 4226 2300 Email: comp.sect@vedanta.co.in Ms. Prerna Halwasiya Dy. Head Investor Relations Vedanta Limited Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003 Tel: +91 011 4226 2300 Email: vedantaltd.ir@vedanta.co.in Corporate Communication related matters of the Company Sustainability Related Matters Queries related to Debenture issued by the Company: Mrs. Ritu Jhingon Director – Communications, PR and Branding Vedanta Limited Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003 Tel: +91 011 4226 2300 Email: gc@vedanta.co.in Mr. Rajinder Ahuja Group Head – HSE and Sustainability Vedanta Limited Core 6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003 Tel: +91 011 4226 2300 Email: sustainability@vedanta.co.in 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 268 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Annual General Meeting for FY 2023 Date and Time • 12 July 2023 • 3:00 p.m IST Virtual AGM Virtual Annual General Meeting with live webcast and facility to participate through Video Conferencing/ other audio-visual means for shareholders 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 AGM Notice. The joining links for the AGM and other details can be accessed at: www.vedantalimited.com/vedanta2023/ Frequently Asked Questions ("FAQs") A set of 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. Financial Year The Financial Year of Company commences from 01 April and concludes on 31 March of each year. Each quarter, the Companyreviewedandapproveditsfinancials.ThepreviousandtentativedatesforapprovalofthefinancialsforFY2023 and FY 2024 are as follows: FY 2023 FY 2024 1st Quarter: 28 July 2022 2nd Quarter: 28 October 2022 3rd Quarter: 27 January 2023 4th Quarter: 28 April 2023 1st Quarter: End of July 2023 2nd Quarter: End of October 2023 3rd Quarter: End of January 2024 4th Quarter: End of April 2024 269 REPORT ON CORPORATE GOVERNANCE Dividend and Capital Allocation Dividend Distribution Policy 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. Withconsistentdividendasahealthysignofoursustainedgrowth,ourfirmbeliefinpercolatingthebenefitsofourbusiness 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 reaffirmtherealisationofcompetentnumbersforFY2023. Dividend for FY 2023 For the period under review, the Company has declared and paid interim dividend as detailed below: 1st Interim Dividend `31.50 per share 2nd Interim Dividend `19.50 per share 3rd Interim Dividend `17.50 per share 4th Interim Dividend `12.50 per share 5th Interim Dividend `20.50 per share Total Dividend `101.50 per share ~30% dividend yield with record dividend declaration of `101.50/share in FY 2023 The complete details on date of declaration, date of payment, record date, total pay-out are detailed in the Directors’ Report forming part of this Annual Report. The payment of the above-mentioned dividend was duly completed within the statutory timelines. Further,theBoardhasnotrecommendedanyfinaldividendforFY2023. Shareholders Value Creation Vedanta has a consistent track record of rewarding its shareholders with strong dividend pay-out. The Company has paid attractive dividend amounting to `84,647 crore in last 10 years. The details of the same have been summarised below: Dividend History Dividend Per Share (`) Dividend Payout in Last 10 Years `84,647 crore . 0 5 1 0 1 0 0 5 4 . 5 2 3 . 0 1 4 . 0 5 3 . 5 4 9 1 . 0 2 1 2 . 5 8 8 1 . 0 9 3 . 0 5 9 . 4 1 0 2 Y F 5 1 0 2 Y F 6 1 0 2 Y F 7 1 0 2 Y F 8 1 0 2 Y F 9 1 0 2 Y F 0 2 0 2 Y F 1 2 0 2 Y F 2 2 0 2 Y F 3 2 0 2 Y F 270 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Capital Allocation Policy Your Company has always strived to maintain an optimal capital allocation to strengthen the balance sheet. The approach has alwaysbeentogrowsustainablyandwithfinancialprudenceandinthelinewiththesame,thebelowguidingprinciplesforms part of the Company’s Capital Allocation Policy: • A consistent, disciplined, and balanced allocation of capital with long-term Balance Sheet management • Maintain optimal leverage ratio (Net Debt/EBITDA) at consolidated level • Overall capital allocation will maximise Total Shareholders Returns ("TSR") Disciplined Capital Allocation Framework Key Strategic Priority Optimise Leverage Ratio Intend to deleverage at group level • • Leverage ratio at the Company should not be more than 1.5x. Capital Expenditure Project Capex Sustaining Capex • Volume augmentation, cost reduction or creating value-added products are key guiding principles for all projects • Growth projects to ensure minimum • All sustaining capital expenditure to be a part of Business Plan • Sustainingcapextobedefined guidelines for IRR - 18% and tracked in US$/tonne CAPITAL ALLOCATION Dividend • Minimum30%ofAttributableProfitaftertax(beforeexceptionalitems)of Company(excludingprofitsofHZL) • Dividend income received from HZL will be pass through within 6 months • Intent to enhance value via acquiring accretive assets/business that have: synergies with existing line of core businesses Mergers and Acquisitions Maximise Total Shareholder’s Return Listing Details Particular Indian 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 Scrip Code ISIN Code 500295 INE205A01025 VEDL INE205A01025 Notes: 1. Non-Convertible Debentures of the Company are listed on BSE, details of the same are provided later in this report. 2. Commercial Papers of the Company are listed on NSE, details of the same are provided later in this report. 3. Company has paid annual listing fees for FY 2024 to all the Stock Exchanges, where the securities of the Company are listed. 4. During the year, none of the securities of the Company were suspended from trading. 5. No funds were raised through Preferential Allotment or Qualified Institutional Placement as per the Regulation 32(7A) of Listing Regulations. 271 REPORT ON CORPORATE GOVERNANCE Stock Price Data for FY 2023 BSE: HIGH-LOW PRICE (in `) NSE: HIGH-LOW PRICE (in `) . 0 1 7 9 3 . 5 7 0 4 4 . 0 8 9 7 2 . 0 0 2 1 4 . 0 3 5 5 2 . 0 9 0 2 3 . 5 6 5 6 2 . 0 5 5 0 3 . 0 0 1 8 2 . 5 6 4 2 3 . 0 6 1 8 2 . 5 1 2 2 3 . 0 3 6 0 3 . 5 7 0 4 3 . 0 0 2 6 2 . 5 2 8 3 3 . 0 0 5 6 2 . 0 7 4 9 2 . 0 1 6 1 2 . 5 1 7 2 3 . 5 8 5 4 2 . 5 9 4 7 2 . 0 1 6 0 2 . 0 5 1 6 2 . 5 0 7 9 3 . 5 7 0 4 4 . 5 5 9 7 2 . 0 0 2 1 4 . 0 2 5 5 2 . 0 9 0 2 3 . 0 6 5 6 2 . 0 5 5 0 3 . 0 0 1 8 2 . 0 6 4 2 3 . 0 8 1 8 2 . 0 2 2 2 3 . 0 2 6 0 3 . 5 7 0 4 3 . 5 9 1 6 2 . 5 2 8 3 3 . 5 1 6 6 2 . 0 6 4 9 2 . 0 1 6 1 2 . 0 2 5 2 3 . 5 7 5 4 2 . 0 0 5 7 2 . 0 0 6 0 2 . 5 4 1 6 2 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F 3 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F 3 2 - r a M High Price Low Price High Price Low Price VEDL Share Price v/s BSE Sensex v/s BSE VEDL Share Price v/s NIFTY 50 v/s NSE Metal Index Metal Index 120 100 80 60 40 20 0 120 100 80 60 40 20 0 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F 3 2 - r a M 2 2 - r p A 2 2 - y a M 2 2 - n u J 2 2 - l u J 2 2 - g u A 2 2 - p e S 2 2 - t c O 2 2 - v o N 2 2 - c e D 3 2 - n a J 3 2 - b e F 3 2 - r a M VEDL Share Price BSE Sensex BSE Metal VEDL Share Price NIFTY 50 NSE Metal Market Indices 300 250 200 150 100 50 0 272 01 January 2020 01 May 2020 01 September 2020 01 January 2021 01 May 2021 01 September 2021 01 January 2022 01 May 2022 01 September 2022 01 January 2023 VEDL BSE Metal BSE AIICAP BSE 500 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS EPS (`) Market Cap (` crore) . 3 7 0 5 2 3 1 3 . 0 5 . 8 2 0 3 8 2 . . 7 0 9 1 . 0 0 8 1 - , 1 1 1 2 0 1 , , 0 5 4 3 0 1 , , 0 7 9 9 4 1 , , 1 1 1 2 0 1 , 4 9 9 4 8 , 4 0 3 8 6 , 9 6 0 4 2 , FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2023 FY 2023 Share Transfer System As part of the effective shareholder management and grievance redressal processes, various shareholder requests received by the Company through RTA are processed in the following manner: Request received by RTA Document Verification Approval Requests relating to transfer, transmission, transposition, change of name, deletion of name are received from shareholders having physical shareholding; The Company RTA, verifiestheauthenticity of documents submitted by shareholders; The Company also inspectsandconfirmsthe veracity and validity of documents; RTA thereafter, sends the requests to the Company for processing; Requests are then approved by the duly constituted Share and 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. Inadditiontotheabove,acompliancecertificateisissued on an yearly basis by a Company Secretary in Practice 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. Shareholders are informed that in case of any dispute against the Company and/or its RTA on delay or default in processing your requests, as per SEBI Circular dated 30 May 2022,anarbitrationcanbefiledwiththeStockExchanges for resolution. Reconciliation of Share Capital Audit As required by the Listing Regulations, quarterly audit of the Company’s share capital is being carried out by a Company Secretary in Practice with a view to reconcile the total share capital admitted with NSDL and CDSL and held in physical form, with the issued and listed capital. The reports for Share Capital Audit Reconciliation and Compliance Certificatesobtainedinlinewiththestatutoryrequirements aremeticulouslyfiledwiththeStockexchangesonatimely basis and also placed before the Board of Directors. Capital Evolution The details of capital evolution of the Company can be accessed on the website of the Company at www.vedantalimited.com. 273 REPORT ON CORPORATE GOVERNANCE Shareholding Distribution Shareholding according to shareholders class as on 31 March 2023 Shareholding of Nominal value of `1/- No. of shareholders % of Total shareholders No. of shares held Shareholding (%) 1-5000 5001- 10000 10001- 20000 20001- 30000 30001- 40000 40001- 50000 50001- 100000 100001 & Above TOTAL Sr. No. Category (a) Promoter and Promoter Group Indian promoters Foreign promoters Total (a) (b) Public 14,47,938 99.29 25,14,02,256 5,986 2,451 658 313 175 321 476 0.41 0.17 0.05 0.02 0.01 0.02 0.03 4,32,26,934 3,44,54,947 1,61,37,819 1,09,36,035 79,35,304 2,28,64,201 3,33,02,41,543 14,58,318 100.00 3,71,71,99,039 31 March 2023 No. of shares held Face value `1/- 1,60,656 2,53,16,89,293 2,53,18,49,949 Domestic Institutional Investors (Mutual Funds, Venture Capital Funds, Alternate 37,92,97,083 Investment Funds, Banks, Insurance Companies, Pension Funds/Provident Funds, Asset Reconstruction Companies, Sovereign Wealth Funds, NBFCs etc.) 6.76 1.16 0.93 0.43 0.30 0.21 0.62 89.59 100.00 Percentage of shareholding 0.00% 68.11% 68.11% 10.20% Foreign Institutional Investors (Foreign Direct Investment, Foreign Venture 29,32,24,835 7.89% Capital Investors, Sovereign Wealth Funds, Foreign Portfolio Investors, Overseas Depositories, Banks etc.) Central Government/State Government(s) Associate Companies/Subsidiaries Directors and their relatives (excluding independent directors and nominee directors) Key Managerial Personnel Relatives of promoters Trusts where any person belonging to 'Promoter and Promoter Group' category is 'trustee','beneficiary',or'authorofthetrust Investor Education and Protection Fund ("IEPF") Resident Individuals Non-Resident Indians ("NRI") Foreign Nationals Foreign Companies Bodies Corporate Clearing Members HUF Trusts Total (b) (c) Non-Promoter Non-Public ESOS Trust Total (c) Grand Total (a)+(b)+(c) 25,31,674 0 1,02,023 11,175 0 0 55,42,888 35,31,66,448 1,32,16,204 3,059 18,42,769 5,82,21,936 6,18,03,484 1,17,00,596 6,79,841 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.15% 9.50% 0.36% 0.00% 0.05% 1.57% 1.66% 0.31% 0.02% 1,18,13,44,015 31.78% 40,05,075 40,05,075 3,71,71,99,039 0.11% 0.11% 100.00% 1. As on 31 March 2023, the shareholding of Vedanta Netherlands Investment B.V. ("VNIB") (Promoter Group) in the Company has been reduced to 50,14,714 equity shares. Hence, the total shareholding of Promoter and Promoter Group has been reduced from 69.69% to 68.11%. 2. 3,05,832 equity shares are under abeyance category, pending for allotment as they are sub judice. 274 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Shareholding Distribution as on 31 March 2023 Dematerialisation of Shares and Liquidity 3.87% 9.93% 9.02% 1.18% 7.89% 68.11% 0.20% 14.43% 85.37% Promoter and Promoter Group Foreign Institutional Investors Domestic Institutional Investors LIC Individuals (Indian Resident, NRIs, Directors, KMP etc.) Others - Bodies Corporate, HUF, Trusts, Foreign Nationals, IEPF etc. NSDL CDSL Physical The shares of the Company are compulsorily traded in dematerialised form on the stock exchanges. As on 31 March 2023, ~99% shares of the Company are held in dematerialised form. Pursuant to the amendment in Listing Regulations, post 01 April 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. Listing of Debt Securities Non-Convertible Debentures The following Secured Redeemable Non-Convertible Debentures ("NCDs") are listed with BSE as on 31 March 2023: ISIN S. No. Issuance date Maturity date Coupon rate Payment frequency No. of NCDs (Face value of `10 lakh each) Amount issued (` in crore) 1 2 3 4 INE205A07196 25 February 2020 25 February 2030 INE205A07212 31 December 2021 31 December 2024 INE205A07220 29 June 2022 29 June 2032 9.20% 7.68% 8.74% INE205A08012 16 December 2022 15 March 2024 3M T Bill Linked Annual Annual Annual Annual 20,000 10,000 40,890 8,000 2,000 1,000 4,089 800 Commercial Papers The following Commercial Papers ("CPs") are listed with NSE as on 31 March 2023: S. No. 1 ISIN Issuance date Maturity date Face Value (`) INE205A14WR8 18 July 2022 17 July 2023 5,00,000 Total No. of Securities 10,000 Amount Issued (` in crore) 500 275 REPORT ON CORPORATE GOVERNANCE Credit Ratings Your Company is rated by CRISIL and India Rating and Research Private Limited (“India Ratings") on its various debt instruments. Status as on 31 March 2022 Status as on 31 March 2023 Date of Action CRISIL India CRISIL India Ratings CRISIL India Ratings Bank Loans CRISIL AA/ Ratings IND AA/ Outlook Outlook Stable Stable Working CRISIL Capital Lines Non- AA/ Outlook Stable/ CRISIL A1+ CRISIL Convertible AA/ IND AA/ Outlook Debentures Outlook Stable Stable CRISIL AA/ IND AA/ The long-term rating has been The long-term rating has been Outlook Negative Outlook Negative maintained at “AA”. However, maintained at “AA”. However, Outlook has been revised to Outlook has been revised to negative in FY 2023. negative in FY 2023. Theratingsaffirmationfactors Theaffirmationreflects inrobustoperatingprofitability expectation of the consolidated significantlyhigherthanpre- net adjusted leverage (including pandemic levels. Further, VRL’s debt; (adjusted debt net of consolidated EBITDA is expected to increase to more than `40,000- 42,000crorefromfiscal2024, driven by healthy commodity prices that are expected to remain stable around current levels, cash/EBITDAR)) in the range of 2.5x-2.75x in FY 2024, FY 2025, supported by an improvement in VDL’s absolute EBITDA (`400 billion - `450 billion) on account of the increased operating robust operating rates across key leverage from higher capacities, businesses, increased volume improving backward integration, growth in Aluminium business healthy domestic demand, supported by commissioning ofnewcapacityduringfiscal 2024 along with expected correction in commodity spreads andcost-efficientoperationsin key business segments, despite reduction in cost of production for a moderation from the historical Aluminium business on the back ofaluminarefineryexpansionand commissioning of captive coal mines. levels. The Outlook revision reflects the elevatedriskofrefinancingat an increased cost of borrowing The revision in outlook reflects with scheduled material debt possibility of higher-than- repayments at VDL and VRL in FY 2024 and FY 2025. expectedfinancialleverageand lowerfinancialflexibilitywith reducing ratio of cash surplus to 1-yearmaturitiesforfiscals2023 and 2024. Same as above NA CRISIL AA/ Outlook Negative/ CRISIL A1+ CRISIL AA/ IND AA/ Same as above Same as above Outlook Negative Outlook Negative Commercial CRISIL IND A1+ CRISIL A1+ IND A1+ No Change No Change Papers A1+ 276 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Plant Locations Division Location Copper Anodes (Smelter), Refinery, SIPCOT Industrial Complex, Madurai By-pass Road, T.V. Puram PO, Tuticorin – 628 002, Tamil Continuous Cast Copper Rods Nadu, India Copper Cathodes (Refinery) and 1/1/2 Chinchpada, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India Continuous Cast Copper Rods/Wire 1/1/1/1 Chinchpada, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India Gat 201, Plot no. 2, 3, 4, 5, 6 and 7 Pune Old Highway, Takwe Khurd. Post Kamshet. Taluka Maval, Dist Pune – 410 405, Maharashtra, India** Continuous Cast Copper Rods 209-B, Piparia Industrial Estate, Piparia, Silvassa – 396 230, Union Territory of Dadra and Nagar Haveli, India Ratnagiri – Y 1, R 57 Zaadzadgaon Block, MIDC, Zadgaon, Ratnagiri – 415 639, Maharashtra, India ** Iron Ore – Mining MeghalahalliOfficeComplex,NearMeghalahalliVillage,Bheemasamudra-577520, Dist. Chitradurga, Karnataka AmonaBeneficiationPlant–PlotNo.SurveyNo39,41,36/1(Part),37(Part),42/1(Part),43/1 (Part), Survey No. 39, Marcel, Amona, Bicholim, North Goa – 403 107, India Pig Iron Division 1 Plot No. Survey No. 39, 41, 36/1 (Part), 37 (Part), 42/1 (Part), 43/1 (Part), Survey No. 39, Marcel, Amona, Bicholim, North Goa – 403 107, India Metallurgical Coke (Met Coke) Plot No. Survey No. 205, 206, 207, 43/1, 44/4, 44/5, Navelim, P. O., Navelim, Bicholim, North Goa – 403 505, India Sy No. 192, 193, Vazare, Dodamarg, Sindhudurg, Maharashtra – 416 512, India Pig Iron Division 2 Plot No. Survey No. 177 & 120 (part), Survey No. 120, Subdiv No.1, Navelim, P. O., Navelim, Bicholim, North Goa – 403 505, India Aluminium Smelters Alumina Refinery PMOOffice,Bhurkahamuda,PO-Sripura,Dist.Jharsuguda,Odisha–768202,India AluminaRefineryProject,At/PO–Lanjigarh,Via–Biswanathpur,Kalahandi,Lanjigarh,Odisha – 766 027, India Aluminium Post Box No. 4, Mettur Dam R.S. - 636 402, Salem District, Tamil Nadu, India Power Oil & Gas Gat No. 924, 925, 926 and 927. Sanaswadi Taluka Shirur. Dist. Pune – 412 208, Maharashtra, India** Bhurkahamunda, PO - Sripura, Dist. Jharsuguda, Odisha - 768 202, India SIPCOT Industrial Complex, Meelavitan, Tuticorin, Tamil Nadu - 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 (g) AA-ONHP-2017/1 - Assam Basin - India (h) AA-ONHP-2017/6 - Assam Basin - India (i) AA-ONHP-2017/14 - Assam Basin - India AA-ONHP-2017/4 - Assam Basin - India (j) (k) AA-ONHP-2017/5 - Assam Basin - India AA-ONHP-2017/8 - Assam Basin - India (l) (m) AA-ONHP-2017/9 - Assam Basin - India (n) AA-ONHP-2017/11 - Assam Basin - India (o) AA-ONHP-2017/15 - Assam Basin - India (p) AA-ONHP-2017/2 - Assam Basin - India (q) AA-ONHP-2017/3 - Assam Basin - India (r) AA/ONDSF/Hazarigaon/2018 - Assam Basin - India (s) KG-OSHP-2017/1 - Krishna Godavari Basin - India 277 REPORT ON CORPORATE GOVERNANCE Division Location (t) KG-DWHP-2017/1- KG Deepwater Basin - India (u) CY-OSHP-2017/1- Cauvery Basin - India (v) CY-OSHP-2017/2- Cauvery Basin - India (w) GK-ONHP-2017/1- Gujarat Kutch Basin - India (x) GK-OSHP-2017/1- Gujrat Kutch Basin - India (y) GS-OSHP-2017/1- Gujrat Kutch Basin - India (z) GS-OSHP-2017/2- Gujrat Kutch Basin - India (aa) MB-OSHP-2017/2- Mumbai Basin - India (bb) RJ-ONHP-2017/5- Barmer Basin - India (cc) RJ-ONHP-2017/6- Barmer Basin - India (dd) RJ-ONHP-2017/7- Barmer Basin - India (ee) RJ-ONHP-2017/1- Barmer Basin - India (ff) RJ-ONHP-2017/2- Barmer Basin - India (gg) RJ-ONHP-2017/3- Barmer Basin - India (hh) RJ-ONHP-2017/4- Barmer Basin - India (ii) CB-ONHP-2017/1- Cambay Basin - India (jj) CB-ONHP-2017/7- Cambay Basin - India (kk) CB-ONHP-2017/10- Cambay Basin - India (ll) CB-ONHP-2017/6- Cambay Basin - India (mm) CB-ONHP-2017/2- Cambay Basin - India (nn) CB-ONHP-2017/3- Cambay Basin - India (oo) CB-ONHP-2017/4- Cambay Basin - India (pp) CB-ONHP-2017/5- Cambay Basin - India (qq) CB-ONHP-2017/11- Cambay Basin - India (rr) HF-ONHP-2017/1- Himalaya Foreland Basin - India (ss) GV-ONHP-2017/1- Ganga Valley Basin - India (tt) CB-ONHP-2018/1- Cambay Basin - India (uu) GK-OSHP-2018/1- Gujarat Kutch Basin - India (vv) GK-OSHP-2018/2- Gujarat Kutch Basin - India (ww) MN-OSHP-2018/1- Mahanadi Basin - India (xx) RJ-ONHP-2018/1- Barmer Basin - India (yy) AA-ONHP-2018/1- Assam Basin - India (zz) CB-ONHP-2018/3- Cambay Basin - India (aaa) CB-ONHP-2018/4- Cambay Basin - India (bbb) AA/ONDSF/TUKBAI/2021- Assam Basin - India (ccc) AA/ONDSF/PATHARIA/2021- Assam Basin - India (ddd) CB/OSDSF/AMBE/2021- Cambay Basin - India (eee) GK/OSDSF/GK1/2021- Gujarat Kutch Basin - India (fff) MB/OSDSF/BH68/2021-Mumbai Basin - India (ggg) MB/OSDSF/B174/2021-Mumbai Basin - India (hhh) KG/OSDSF/G4/2021– Krishna Godavari Basin– India (iii) VN/ONDSF/NOHTA/2021-Madhya Pradesh Basin - India (jjj) SR-ONHP-CBM-2021/5-Chhattisgarh Basin - India Pipeline (a) Radhanpur Terminal, Patan, Gujarat - 385 340, India (b) Viramgam Terminal, Viramgam, Ahmedabad, Gujarat - 382 150, India (c) Bhogat Terminal, Bhogat Jam Kalyanpur Devbhumi Dwarka, Gujarat - 361 315, India 278 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Division Location Plant (a) Mangala Processing Terminal, Barmer, Rajasthan Nagana Village, Near Kawas, NH112, Barmer - 344 035, Rajasthan, India (b) Raageshwari Gas Terminal, Rajasthan, India (c) Suvali Onshore Terminal, Gujarat, India Survey No. 232, Suvali, Surat Hazira Road, Surat - 394 510, Gujarat, India (d) Raava Onshare Terminal, Andhra Pradesh Surasani Yanam, Uppalaguptam Mandal, East Godavari District -533 213, Andhra Pradesh, India (e) Nagayalanka EPS Facility, Andhra Pradesh Nagayalanka GGS, Vakkapatlavaripalem Village, Nagayalanka Mandal, Krishna District - 521 120, Andhra Pradesh, India (f) KW-2 updip: Khasra No. 513, 514, 514/1, 514/3, 524, 524/10, 524/12, 526, 532, 533, Barmer to Gudamalani Road, Dholpaliyanada Barmer - 344 001, Rajasthan, India (g) Jaya Jambusar: Land Survey Nos.: 317/319/320 and 321 of village Amanpur Mota, Jambusar Bharuch - 392 180, Gujarat, India (h) Hazarigaon: Hazarigaon Wellpad, Barapathar, Golaghat - 785 601, Assam, India GIDC Doswada, Ta. Fort Songadh, District Tapi, Gujarat - 394 365, India ** Paper **Non-operational unit 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. prices that are typically priced by reference to the US dollar, asignificantpartofitsexpensesareincurredandpaidin 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 lowerprofitabilityorinhighercashoutflowstowardsdebt obligations. Mitigation: OurGrouphasawell-diversifiedportfolio, 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, tominimisepriceriskforfinishedgoodswherepriceof 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 EXCO. 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 currenciesmayhaveanimpactonourfinancials.Although the majority of the Group’s revenue is tied to commodity 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, capitalgoodsandothersuppliesaswellasfinancing 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 279 REPORT ON CORPORATE GOVERNANCE 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. S. No. Commodity Name(1) Exposure(2) in ` towards the particular commodity Units Exposure in % of such exposure hedged through commodity derivatives quantity towards the particular commodity Domestic market International market Total OTC Exchange OTC Exchange 1 2 3 4 5 6 Aluminium 39,263 kt Oil Gas Copper(3) Silver(3) Gold(3) 6,679 1,552 24,835 30 890 mmboe mmscf kt Oz Oz 1,735 10 341 351 1,73,854 61,641 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 85% 0% 31% 0% 0% 85% 0% 38% 0% 0% 91% 0% 0% 38% 31% 0% 91% 85% 85% 1. Commodity means a commodity whose price is fixed by reference to an international benchmark and having a material effect on the financial statements. 2. Exposure for Aluminium and Oil is based on sales and closing stock and that for Gas is based on sales. 3. 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 31 March 2023 as the same will be hedged as per the Company’s policy and contractual terms once price period is fixed. OTHER DISCLOSURES Details of Loans and Advances by the Company and its Subsidiaries in the nature of loans to firms/companies in which Directors are interested TheaforesaiddetailsareprovidedinthefinancialstatementsoftheCompanyformingpartofthisAnnualReport.Pleaserefer toNote41ofthestandalonefinancialstatements. Total fees for all services on a consolidated basis to the Statutory Auditor Particulars Auditfees(auditandreviewoffinancialstatements) Certificationandotherattestservices Tax matters Others Total *exclusive of GST March 2023 (` in crore)* 20 0 - 1 21 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 provisions of Listing Regulations with respect to material subsidiary for FY 2023. 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. 280 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The Company supervises and monitors the performance of subsidiary companies: On a quarterly basis, the minutes of each of the Board and Audit Committee Meeting of the subsidiary companiesandastatementofallsignificant transactions of the subsidiary companies are placed before the Board of Directors and Audit & Risk Management Committee for their review and noting. Quarterly presentations are made to the Audit & Risk Management Committee and Board on the Key accounting matters, tax matters and legal cases relating to subsidiaries. SignificantInternalAuditObservationsof the subsidiaries are made to the Audit & Risk Management Committee on a quarterly basis. Act for violation of Regulation 3(a),(b),(c),(d) Regulation 4(1) and 4(2)(k) and (r) of SEBI (Prevention of Fraudulent and Unfair Trade Practices) Regulations, 2003 and a penalty of `25 lakh under Section 15HB of SEBI Act for violation of Regulation 19(1)(a) of SEBI (Buyback) Regulations, 2003 for not completing the buyback offer in the year 2014. The Companyhasfiledanappealagainstthesaidorder.The same is pending before Securities Appellate Tribunal and thefinalorderisawaited. 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. Presentations are made to the Company’s Board on business performance by the senior management of major subsidiaries of the Company. 24x7 Hotline Web Based Portal Certain matters of the subsidiaries relating to Financial and Planning and Commercial are reserved for approval of the Board or Committee of Directors of the Company. Whistle Blower Policy Subsidiaries are subject to applicable Statutory Audit and Secretarial Audit. Dedicated Email IDs Centralised Database Further, appropriate disclosures related to subsidiaries are made in Financial Statements/Directors’ Report of the Company as per the Act and Listing Regulations. Materially Significant Related Party Transactions Acomprehensivenoteonmaterialsignificantrelatedparty transactions forms part of Directors' Report. Your Company has in place a policy on Related Party Transactions, which envisages the procedure governing Related Party Transactions entered into by the Company. The said policy was revised in the Board meeting held on 28 March 2023 effective from 01 April 2023 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 (03) years SEBI has vide its order dated 19 May 2021 imposed a penalty of `5 crore on erstwhile Cairn India Limited (merged with Vedanta Limited in 2017) under Section 15HA of SEBI 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 – MAS, who is independent of operating management and the businesses. In line with global practices, dedicated email 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. TheCompanyherebyaffirmsthatnopersonnelhave been denied access to the Chairperson of Audit & Risk Management Committee. 281 REPORT ON CORPORATE GOVERNANCE 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 Separation of Roles of CEO and Chairman As on 31 March 2023, the Board of the Company is chaired by a Non-Executive Director who maintains the Chairman’s officeattheCompany’sexpense. The roles and responsibilities of the Chairman and CEO havebeendistinctivelydefinedandthepositionsare heldbyseparateindividualsforbetterefficiency. Shareholder's Rights Quaterlyfinancialresultsaresenttotheshareholderswhose E-mail IDs are registered with the Company. Additionally, news releases, institutional investor/analyst presentations, annual reports and other governance documents are also made available to the shareholders through Company website. Unmodified Opinion in Audit Report During the year under review, the Independent Auditors haveissuedanunmodifiedopinionontrueandfairview oftheCompany’sfinancialstatements. ESG Committee With the integration of ESG parameters into the decision- making of investors; increasing focus of regulatory bodies on ESG reporting and disclosures round the globe; and in line with upholding our core commitment and Board oversight on ESG priorities, the Board, in its meeting held on 26 July 2021, approved the enhancement of the scope of the erstwhile Sustainability Committee and upgraded it to Board-level ESG Committee to strengthen Board-level rigour and advice into all aspects of ESG. Board Diversity Policy Reporting of Internal Auditors ThesameisreportedbybriefingtheAudit&RiskManagement Committee through discussion and presentation of the observations, review, comments and recommendations, amongst others in the Internal Audit presentation by the Company’s Internal Management Assurance. The Company as part of best governance practices has adopted the Board Diversity Policy as a sub-set of NRC Policy to ensure an inclusive and diverse membership of the Board of Directors of the Company resulting in optimal decision- making and assisting in the development and execution of a strategy which promotes success of Company for the collectivebenefitofitsstakeholders. Corporate Governance requirements specified in Regulation 17 to 27 and Regulation 46 of the Listing Regulations Your Company has complied with all the mandatory corporate governance requirements under the Listing Regulations. YourCompany,specifically,confirmscompliancewithcorporategovernancerequirementsspecifiedinRegulation17to27and clauses (b) to (i) of Sub-Regulation (2) of Regulation 46 of the Listing Regulations. Further, in compliance with the advisories issued by the respective Stock Exchanges for dissemination of certain requirements under Regulation 46(2) and 62(1) of the Listing Regulations, a separate section has been created on the website of the Company for the disclosures under the aforesaid Regulations. ThedisclosuresfiledwithStockExchangesfromtimetotimecanbeaccessedatwww.vedantalimited.com. 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/charters adopted are detailed below: Category of Policy/Code Brief Summary Web Link Amendments The Code provides the general rules for our professional conduct so that the business of the Company is consistent with our values and core purpose. www.vedantalimited.com There has been no change in the policy during FY 2023 Code of Business Conduct and Ethics including Anti-Bribery and Anti-Corruption Policy, Whistle Blower Policy and Anti- Trust Guidance Notes 282 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Web Link Amendments www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the Code during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com The policy was revised on 28 March 2023 effective from 01 April 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the Charter during FY 2023 www.vedantalimited.com There has been no change in the Charter during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 www.vedantalimited.com There has been no change in the policy during FY 2023 Category of Policy/Code Brief Summary Corporate Social Responsibility Policy Nomination & Remuneration Policy including the Criteria for determining the Independence of Directors Insider Trading Prohibition Code Dividend Distribution Policy Related Party Transaction Policy Policy on Determination of Material Subsidiaries 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 Charter of Stakeholders’ Relationship Committee (“SRC") ESG Committee Charter Board Diversity Policy Diversity and Inclusion Policy This Policy provides guidance in achieving the objective of conducting its business in a socially responsible, ethical and environment-friendly manner and to continuously work towards improving the quality of life of the communities in and around its operational area and ensures that the Company operates on a consistent and compliant basis. Thepolicydetailstheguidelinesonidentificationand appointment of individual as a Director, KMP and SMP includingthecriteriaontheirqualificationandindependence, manner & criteria for effective evaluation of the performance andDirectors'&OfficersInsurance.ThePolicyalsodetails the compensation principles responsibilities of senior management and succession planning. The Code lays down the guideline to regulate, monitor and report trading in securities of the Company; policy and procedure for inquiry in case of leak of UPSI; and code of practices and procedures for fair disclosure of UPSI and 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 envisages the procedure governing Related Party Transactions required to be followed by the Company to ensure compliance with the Law and Regulations. The Company has voluntarily adopted a stringent policy as against the requirements under the law. 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. 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. The primary purpose of the SRC is to oversee all matters pertaining to investors of the Company. The Charter sets out the terms of reference for functioning of the SRC. TheCharterdefinestheroleoftheESGCommitteetoassist the Board in meeting its responsibilities in relation to the Environmental, Social and Governance matters arising out of the activities and operations of the Company and its subsidiary companies (the Group) for aiming towards enhanced sustainable development. The purpose of Board Diversity Policy is to ensure an inclusive and diverse membership of the Board of Directors of the Company resulting in optimal decision-making and assisting in the development and execution of a strategy which promotes success of Company for the collective benefitofitsstakeholders. The policy highlights the commitment of the Company towards the cause of promoting diversity and inclusion within the organisation and in larger communities who we partner with. This policy is forward-looking as it assimilates people with differences including but not limited to nationality, geography, ethnicity, gender, sexual orientation, age, physical abilities, family status, religious beliefs, perspective, experience or other ideologies and sets a vision for diversity and inclusion for businesses across the Group. For ease of reference of our stakeholders, all our policies and codes are available on our website in three different languages i.e.,English,HindiandMarathi(sinceregisteredofficeoftheCompanyisinMaharashtra)andcanbeaccessedat: www.vedantalimited.com 283 REPORT ON CORPORATE GOVERNANCE Awareness Sessions/Workshops on Governance practices Vedanta as an organisation staunchly supports transparency and openness in its reporting as well as practice. Believing in zero tolerance for unethical practices, employees across the Group are regularly sensitised about the policies and governance practices through various multi-faceted interactive tools. Insider Trading Monitoring Portal Online Gift Declaration Portal • Company has a robust mechanism in place to prevent • The employees can neither accept nor send gifts/ insider trading. • As a step towards digitisation, a web-based portal has been implemented 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 as well as ensure initial/continual disclosure. entertainment in exchange of any business/ services/givingoffanyconfidentialinformationetc. toderiveanybenefitconflictingwiththeinterestof the Company. • The Company has in place an online gift declaration portal with the employees required to promptly declare the gifts received by them in compliance with the Gift Policy forming part of the Code of Business Conduct and Ethics. Statutory Compliance System IT Security/Cybersecurity Governance • In order to ensure best-in-class compliance monitoring and reporting, the 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 issueandsign-offoncompliancecertificatesfortheir respective businesses each quarter for placing before theAudit&RiskManagementCommitteeandBoard. • The Company conducted an awareness session for the Board of Directors in collaboration with the Data Security Council of India ("DSCI") to facilitate insights on how Cyber Security and Data Governance were being understood, prioritised, and addressed at the Board level. • An online comprehensive module on Cyber Security Training and Assessment has been launched for employees in order to enhance their awareness about information security through mandatory completion of training. 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 training for all employees across the Group. • Anannualaffirmationforadherencewiththe Code is also obtained to reiterate commitment and understanding. Digital Safety Module • Continuing the spirit and reinforcing the vision of “Zero Harm, Zero Waste and Zero Discharge", your Company launched 5 Digital Safety e-learning Modules, across the Company to promote a clear understanding of Safety standards to our employees and Business Partners. • More than 2,500 employees and business partners completed the training on 5 Critical Safety Standards. In Phase 2, 6 additional modules will be launched. The modules will also be made available in the regional language for business partners. 284 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Launch of TCFD Report on Climate Change Employee Sensitisation- Ethics and Governance • The Company will release its third report on its decarbonisation strategy based on the Taskforce on Climate-related Financial Disclosures (“TCFD") and the guidelines issued by the FSB. • The report documents Vedanta's journey to substantially decarbonise its business by 2050 and can be accessed on the Company website at www.vedantalimited.com. • This report is in addition to the other disclosures that the Company makes on ESG – GRI based Sustainability Report, BRSR, and the Integrated Report. This is reflective of our commitment to transparently disclose our ESG performance. Innovation Portal and Cafes - Digitalisation Initiatives • Strengthening one of the core value, the Company is promoting and developing digitalisation and innovation culture strategically among the employees including business partners. • Vedanta 360 - Innovation portal is developed as a unique platform to capture all the thoughts across the organisation. People are encouraged to showcase their innovative thoughts, success stories, ideas etc. and they may also seek innovative solutions to business challenges. This portal has end-to-end integration from Idea to Reward in near future. • Vedanta Innovation Cafe - A place at workplace is established across the operations to provide conducive 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 Group to keep the momentum high and recognise the team efforts across businesses. • Awareness Video Clips and Mailers - Withafirmbelief in zero tolerance for unethical practices, the Company sensitises employees about various matters including prevention of sexual harassment (“POSH"), anti-bribery, conflict of interest, gift policy, corruption, ESG etc. through short video clips and mailers to make the workplace a better place each day. • Ethics Quiz - To assess the awareness and understanding of employees, an Ethics quiz is also conducted on periodic basis. • Ethics Compliance Month - As part of special annual initiative, the Company conducts Ethics Compliance Month wherein awareness and training sessions are conducted covering governance and internal policies such as prevention of insider trading, POSH, anti- bribery, corruption, anti-trust laws etc. UPSI Sharing Database The Company also has an online UPSI sharing database where time stamp of UPSI shared by employees is maintained digitally. The full access of this UPSI databaseisonlyrestrictedwiththeComplianceOfficer. Sustainability Academy • Following the success of the Sustainability 101 training program to select employees in FY 2022, we have created a digital version of the course. • The e-Sustainability 101 module will be open to all employees and will be launched in FY 2024. This will enable more than 20,000 employees to access to high-quality training materials on ESG – thereby helping in raising awareness on the topic among all employees. 285 REPORT ON CORPORATE GOVERNANCE DECLARATIONS AND CERTIFICATIONS Declaration by CEO on Code of Business Conduct and Ethics A Declaration by the CEO of the Company, stating that the members of Board of Directors andSeniorManagementPersonnelhaveaffirmedcompliancewiththeCodeofBusiness Conduct and Ethics of the Company in enclosed as ‛Annexure I' to this Report. CEO Certification TheComplianceCertificatefromtheCEOoftheCompanypursuanttoRegulation17(8)ofthe Listing Regulations is enclosed as ‛Annexure II' to this Report. Certificate of Non-Disqualification of Directors AcertificatefromChandrasekaranAssociates,CompanySecretaryinPracticecertifyingthat noneoftheDirectorsontheBoardoftheCompanyhavebeendebarredordisqualifiedfrom being appointed or continuing as Directors of Companies by the 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 Theauditor’scertificateregardingcomplianceofconditionsofcorporategovernance 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,SunilDuggal,Whole-TimeDirectorandChiefExecutiveOfficerofVedantaLimited, herebydeclarethatallmembersoftheBoardandSeniorManagementPersonnelhaveaffirmedcompliancewiththeCodeof Business Conduct and Ethics of the Company for FY 2023. Date: 12 May 2023 Place:Mumbai For Vedanta Limited Sunil Duggal Whole-Time Director and ChiefExecutiveOfficer 286 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ANNEXURE II CEO CERTIFICATION I,SunilDuggal,Whole-TimeDirectorandChiefExecutiveOfficercertifythat: A. Ihavereviewedfinancialstatementsandthecashflowstatementfortheyearandthattothebestofmyknowledgeand 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. B. C. 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. Iacceptresponsibilityforestablishingandmaintaininginternalcontrolsforfinancialreporting.Ihaveevaluatedthe effectivenessofinternalcontrolsystemsoftheCompanypertainingtofinancialreporting,andIhavedisclosedtothe auditorsandtheAudit&RiskManagementCommittee,whereapplicable,deficienciesinthedesignoroperationofsuch internalcontrols,ifany,ofwhichIamawareandthestepsIhavetakenorproposetotaketorectifythesedeficiencies. D. I have indicated to the Auditors and the Audit & Risk Management Committee, where applicable, (1) significantchangesininternalcontroloverfinancialreportingduringtheyear; (2) (3) significantchangesinaccountingpoliciesduringtheyearandthatthesamehavebeendisclosedinthenotestothe financialstatements;and instancesofsignificantfraudofwhichIhavebecomeawareandtheinvolvementtherein,ifany,ofthemanagement oranemployeehavingasignificantroleintheCompany’sinternalcontrolsystemoverfinancialreporting. Sunil Duggal Whole-TimeDirectorandChiefExecutiveOfficer DIN: 07291685 Date: 12 May 2023 Place: Mumbai 287 REPORT ON CORPORATE GOVERNANCE 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, Maharashtra - 400 093 We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Vedanta LimitedandhavingCINL13209MH1965PLC291394andhavingRegisteredOfficeat1st Floor, C Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai, Maharashtra - 400 093 (hereinafter referred to as "the Company"), producedbeforeusbytheCompanyforthepurposeofissuingthisCertificate,inaccordancewithRegulation34(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. Inouropinionandtothebestofourinformationandaccordingtotheverifications(includingDirectorsIdentificationNumber ("DIN") status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company and itsofficers,WeherebycertifythatnoneoftheDirectorsontheBoardoftheCompanyasstatedbelowfortheFinancialYear endingon31March2023havebeendebarredordisqualifiedfrombeingappointedorcontinuingasDirectorsofCompanies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such other Statutory Authority: Name of Director S. No. 1. Anil Kumar Agarwal 2. Navin Agarwal 3. Akhilesh Joshi 4. Sunil Duggal 5. Dindayal Jalan 6. Upendra Kumar Sinha 7. Priya Agarwal 8. Padmini Sekhsaria *Original date of appointment. DIN 00010883 00006303 01920024 07291685 00006882 00010336 05162177 00046486 Date of appointment in Company* 01.04.2020 17.08.2013 01.07.2021 25.04.2021 01.04.2021 13.03.2018 17.05.2017 05.02.2021 Ensuring the eligibility of for the appointment/continuity of every Director on the Board is the responsibility of the managementoftheCompany.Ourresponsibilityistoexpressanopiniononthesebasedonourverification.Thiscertificate isneitheranassuranceastothefutureviabilityoftheCompanynoroftheefficiencyoreffectivenesswithwhichthe management has conducted the affairs of the Company. Date:27April2023 Place: Delhi For Chandrasekaran Associates Company Secretaries FRN: P1988DE002500 PeerReviewCertificateNo.:1428/2021 Dr. S. Chandrasekaran Senior Partner Membership No. FCS 1644 CertificateofPracticeNo.715 UDIN: F001644E000205111 Note: Due to ongoing impact of COVID-19, 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 true and correct. 288 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ANNEXURE IV Independent Auditor’s Report on compliance with the conditions of Corporate Governance as per provisions of Chapter IV of the 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 specifiedinregulations17to27,clauses(b)to(i)and(t)ofsub-regulation(2)ofregulation46andparaC,D,andEof Schedule V of the Securities and Exchange Board of India ("SEBI") (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (“Listing Regulations”) ("Applicable Criteria") for the year ended 31 March 2023 as required by the Company for annual submission to the Stock Exchange(s). 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 Listing Regulations, issued by the SEBI. Auditor’s Responsibility 4. Pursuant to the requirements of Listing Regulations, our responsibility is to provide a reasonable assurance in the form ofanopinionwhether,theCompanyhascompliedwiththeconditionsofCorporateGovernanceasspecifiedinListing Regulations. 5. 6. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports orCertificatesforSpecialPurposesandtheGuidanceNoteonCertificationofCorporateGovernance,bothissuedbythe Institute of Chartered Accountants of India (“ICAI”).TheGuidanceNoteonReportsorCertificatesforSpecialPurposes requires that we comply with the ethical requirements of the Code of Ethics issued by ICAI. 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. 7. 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; ObtainedandverifiedthattheRegisteroftheBoardofDirectorswithrespecttotheExecutiveandNon-Executive Directors has been met throughout the reporting period; ObtainedandreadtheRegisterofDirectorsason31March2023andverifiedthatatleast01(one)independent woman director was on the Board of Directors throughout the year; Obtained and read the minutes of meetings of the following held during the period from 01 April 2022 to 31 March 2023: (a) Board of Directors; (b) Audit & Risk Management Committee; (c) Annual General Meeting (“AGM"); (d) Nomination & Remuneration Committee; 289 REPORT ON CORPORATE GOVERNANCE (e) Stakeholders’ Relationship Committee; (f) Corporate Social Responsibility Committee; 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 & Risk Management Committee meeting(s) where in such transactions have been pre- approved by the said Committee. viii. Performednecessaryinquirieswiththemanagementandalsoobtainednecessaryspecificrepresentationsfromthe 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 ofexpressinganopiniononthefairnessoraccuracyofanyofthefinancialinformationorthefinancialstatementsofthe Company taken as a whole. Opinion 9. Based on the procedures performed by us, as referred in paragraph 7 above, and according to the information and explanations given to us, we are of the opinion that the Company has complied with the conditions of Corporate Governance asspecifiedinListingRegulations,asapplicablefortheyearended31March2023,referredtoinparagraph4above. Other matters and Restriction on Use 10. ThisreportisneitheranassuranceastothefutureviabilityoftheCompanynortheefficiencyoreffectivenesswithwhich the management has conducted the affairs of the Company. 11. 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 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 Vikas Pansari Partner Membership Number: 093649 UDIN: 23093649BGXPKS3593 Place: Mumbai Date: 12 May 2023 290 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 1. SECTION A: GENERAL DISCLOSURES 1.1 Details of the listed entity 1 2 3 4 5 6 7 8 9 10 11 12 Corporate Identity Number (CIN) of the Listed Entity L13209MH1965PLC291394 Name of the Listed Entity Vedanta Limited Year of incorporation 1965 Registered office address 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai, Maharashtra – 400 093, India Corporate address Core-6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003 E-mail Telephone Website Financial year for which reporting is being done Name of the Stock Exchange(s) where shares are listed comp.sect@vedanta.co.in +91 22 6643 4500 www.vedantalimited.com 01-04-2022 to 31-03-2023 BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) Paid-up capital `3,71,75,04,871 Name and contact details of the person who may be contacted in case of any queries on the BRSR report Mr. Rajinder Ahuja Group Head – HSE and Sustainability, Vedanta Limited Tel: +91 124 459 3000 Email: sustainability@vedanta.co.in 13 Reporting boundary The disclosures covered under this report are made on a consolidated basis and provides holistic information on Vedanta Limited (VEDL), a subsidiary of Vedanta Resources Limited, and its Subsidiaries/Associate Companies/Joint Ventures. 1.2 Products/Services 14. Details of business activities (accounting for 90% of the turnover): S. No. 1 2 3 Description of Main Activity Description of Business Activity Manufacturing Mining and quarrying Mining and quarrying Metal and metal products Mining of metal ores Extraction of crude petroleum and natural gas 15. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover): S. No. 1 2 3 4 6 7 8 9 Product/Service NIC Code Oil Zinc metal Lead metal Silver metals and bars Copper products Aluminium products Power Steel products 0610 7296 07296 24205 24201 24202 3510 2410 % of Turnover of the entity 56% 29% 10% % of total Turnover contributed 8.56% 19.95% 3.32% 3.15% 11.74% 36.01% 3.64% 4.31% 291 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 1.2.1 Operations 16. Number of locations where plants and/or operations/offices of the entity are situated: Location National International 17. Markets served by the entity: a. Number of locations* Locations National (No. of States) International (No. of Countries) * Includes only for HZL Number of plants Number of offices 82 9 26 8 Total 108 17 Number 24 43 b. What is the contribution of exports as a percentage of the total turnover of the entity? The contribution of exports is ~30% of the total turnover of the entity. c. A brief on types of customers Vedanta Limited (VEDL) is engaged in the business of supply of power, metals & minerals, and oil & gas. The Company produces and supplies a range of minerals and metals, including aluminium, copper, iron ore, zinc, silver, and lead. Our customers are industrial consumers, such as those in the automotive, steel, power generation, infrastructure, battery manufacturing and oil sectors. Details as at the end of Financial Year: 18. a. Employees and workers (including differently abled): S. No. Particulars EMPLOYEES 1. 2. 3. Permanent (D) Other than Permanent (E) Total employees (D + E) WORKERS 4. 5. 6. Permanent (F) Other than Permanent (G) Total workers (F + G) Total (A) 12,064 277 12,341 5,018 70,154 75,172 Male Female No. (B) % (B/A) No. (C) % (C/A) 9,858 206 10,064 4,837 67,628 72,465 82% 74% 82% 96% 96% 96% 2,206 71 2,277 181 2,526 2,707 18% 26% 18% 4% 4% 4% 18. b. Differently abled employees and workers: S. No. Particulars DIFFERENTLY ABLED EMPLOYEES 1. 2. 3. Permanent (D) Other than Permanent (E) Total differently abled employees (D + E) DIFFERENTLY ABLED WORKERS 4. 5. 6. Permanent (F) Other than permanent (G) Total differently abled workers (F + G) Total (A) 9 0 9 14 15 29 Male Female No. (B) % (B/A) No. (C) % (C/A) 6 0 6 12 15 27 67% 67% 86% 100% 93% 3 0 3 2 0 2 33% 33% 14% 0% 7% 292 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 19. Participation/Inclusion/Representation of women Board of Directors Key Management Personnel 20. Turnover rate for permanent employees and workers INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Total (A) 8 4 No. and percentage of Females No. (B) % (B/A) 2 1 25% 25% FY 2023 FY 2022 FY 2021 Male Female Total Male Female Total Male Female Total Permanent Employees1 10.84% 15.29% 11.46% 14.85% 21.49% 15.62% 13.50% 16.36% 13.88% Permanent Workers - - - - - - - - - Note 1: Turnover rate calculated as per FTEs (includes both Permanent Employees and Permanent Workers) 1.2.2 Holding, Subsidiary and Associate Companies (including joint ventures) 21. (a) Names of Holding/Subsidiary/Associate Companies/Joint Ventures S. No. Name of the Holding/Subsidiary/ Associate Companies/Joint Ventures (A) Indicate whether Holding/Subsidiary/ Associate/Joint Venture % of shares held by listed entity Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No) 1 2 3 4 5 6 7 8 9 Copper Mines of Tasmania Pty Limited (CMT) Subsidiary Thalanga Copper Mines Pty Limited (TCM) Subsidiary Athena Chhattisgarh Power Limited Bharat Aluminium Company Limited (BALCO) Subsidiary Subsidiary Desai Cement Company Private Limited Subsidiary ESL Steel Limited Subsidiary Ferro Alloy Corporation Limited (FACOR) Subsidiary Goa Sea Port Private Limited Subsidiary Hindustan Zinc Alloys Private Limited Subsidiary 10 Hindustan Zinc Fertilizers Private Limited Subsidiary 11 Hindustan Zinc Limited (HZL) 12 MALCO Energy Limited (MEL) 13 Maritime Ventures Private Limited Subsidiary Subsidiary Subsidiary Paradip Multi Cargo Berth Private Limited Subsidiary Sesa Mining Corporation Limited Sesa Resources Limited (SRL) Sterlite Ports Limited Subsidiary Subsidiary Subsidiary Talwandi Sabo Power Limited (TSPL) Subsidiary Vedanta Zinc Football & Sports Foundation Subsidiary Vizag General Cargo Berth Private Limited Subsidiary Zinc India Foundation Avanstrate Inc (ASI) Cairn India Holdings Limited AvanStrate Taiwan Inc. 25 Western Cluster Limited Bloom Fountain Limited Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary CIG Mauritius Holdings Private Limited Subsidiary CIG Mauritius Private Limited Subsidiary Amica Guesthouse (Proprietary) Limited Subsidiary 30 Namzinc (Proprietary) Limited Subsidiary 14 15 16 17 18 19 20 21 22 23 24 26 27 28 29 100 100 100 51 100 95.49 99.99 100 100 100 64.9 100 100 100 100 100 100 100 200 100 100 100 100 100 100 100 100 100 100 100 Yes Yes Yes Yes Yes Yes Yes No No No Yes No No No No No No Yes Yes Yes No No Yes No No No No No No No 293 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT S. No. Name of the Holding/Subsidiary/ Associate Companies/Joint Ventures (A) Indicate whether Holding/Subsidiary/ Associate/Joint Venture % of shares held by listed entity Does the entity indicated at column A, participate in the Business Responsibility initiatives of the listed entity? (Yes/No) Skorpion Mining Company Proprietary Limited (NZ) Subsidiary Skorpion Zinc Proprietary Limited (SZPL) Subsidiary THL Zinc Namibia Holdings (Proprietary) Limited (VNHL) Subsidiary Killoran Lisheen Mining Limited Lisheen Milling Limited Lisheen Mine Partnership Vedanta Lisheen Mining Limited Cairn Energy Hydrocarbons Limited Black Mountain Mining (Proprietary) Limited Cairn Lanka Private Limited AvanStrate Korea Inc Lakomasko BV 43 Monte Cello BV (MCBV) THL Zinc Holding BV Vedanta Lisheen Holdings Limited Fujairah Gold FZC Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary 31 32 33 34 35 36 37 38 39 40 41 42 44 45 46 47 48 Gaurav Overseas Private Limited Associate/Joint Venture Raykal Aluminium Company Private Limited Associate/Joint Venture 49 Madanpur South Coal Company Limited Associate/Joint Venture 50 51 52 Goa Maritime Private Limited Associate/Joint Venture Rosh Pinah Health Care (Proprietary) Limited Gergarub Exploration and Mining (Pty) Limited Associate/Joint Venture Associate/Joint Venture 53 Roshskor Township (Pty) Limited Associate/Joint Venture 100 100 100 100 100 100 100 100 74 100 51.6 100 100 100 100 100 50 24.5 17.6 50 69 51 50 No No No No No No No No No No No No No No No Yes No No No No No No No 1.2.3 CSR Details 22. (i) Whether CSR is applicable as per section 135 of the Companies Act, 2013: Yes. (ii) Turnover (in `) - 1,45,404 crore (iii) Net worth (in `) - 15,902 crore • • Thesefiguresdisclosedareas per section 2(57) of the Companies Act, 2013 Net Worth = Paid up share capital + General Reserve + Securities Premium + Retained Earnings • The highlights of Vedanta’s CSR interventions are available as part of the Integrated Report FY 2023 I. Transparency and Disclosure Compliances 294 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct: Stakeholder group from whom complaint is received Grievance Redressal Mechanism in Place (Yes/No) Number of complaints filed during the year FY 2023 Number of complaints pending resolution at close of the year Remarks Number of complaints filed during the year FY 2022 Number of complaints pending resolution at close of the year Remarks Communities Yes 24 13 - - TS 4_Grievance Mechanisms. pdf (www.vedantalimited.com) Social Performance Standard - Grievance Mechanism.pdf (www.vedantalimited.com) Yes Contact Us | Queries, Concerns and Enquiries or Feedback - Vedanta (www.vedantalimited.com) Investors (other) Shareholders Yes Employees and workers Contact Us | Queries, Concerns and Enquiries or Feedback - Vedanta (www.vedantalimited.com) Yes Code of Business Conduct and Ethics (www.vedantalimited.com) Ethics Point - Vedanta Note: Data except HZL and Fujairah Customers Value Chain Partners Yes Vedanta (moglix.com) Note: Data include Zinc and copper Yes https://www.vedantalimited. com/Media/VSFDocuments/ Technical%20Standard%20 V-one/TS%204_Grievance%20 Mechanisms.pdf Other (please specify) - 391 - 0 92 0 407 60 407 94 - - - Data not consolidated at Group Level 103 - - 24. Overview of the entity’s material responsible business conduct issues Forthisfinancialyear,Vedantaundertookadetailedengagementexercisetoidentifynewmaterialissuesthattakes various ESG KPIs into consideration under the Company’s three pillars: Transforming communities, transforming the planet, and transforming the workplace. Materiality assessment was conducted at Vedanta Group level as well as at 3 Business Units (Vedanta Aluminium, Cairn and HZL) individually. The assessment procedure involved the following steps: 1. 2. 3. Identificationofaninitiallistofmaterialtopics:ByconsideringleadingstandardssuchasICMMandSASB,as wellaspeercompanypriorities,atotalof26materialtopicswereidentifiedinthisfirststep. Stakeholder consultations for prioritising material topics: A wide spectrum of stakeholders (both internal and external) were consulted using multiple channels to prioritise the 26 topics for Vedanta based on how it impacts them. Preparation of materiality matrix: Matrix was prepared by assigning different weightages to the responses from various stakeholders based on their relative influence. 295 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT f o s n o i t a c i l p m i l a i c n a n i F y t i n u t r o p p o r o k s i r e h t ) s n o i t a c i l p m i e v i t a g e n r o e v i t i s o p e t a c i d n I ( e t a g i t i m r o t p a d a o t h c a o r p p a , k s i r f o e s a c n I y t i n u t r o p p o / k s i r e h t g n i y f i t n e d i r o f e l a n o i t a R y t i n u t r o p p o r o k s i r r e h t e h w e t a c i d n I ) O / R ( e u s s i l a i r e t a M d e fi i t n e d i . o N . S . 3 2 - 2 2 0 2 t r o p e R d e t a r g e t n I e h t n i t n e m s s e s s a y t i r o i r p h c a e s a t n a t r o p m i s i i s h T i . s c p o t t n a t r o p m i d n a , l a i r e t a m , l a i r e t a m y l h g h o t n i i d e s i r o g e t a c e r e w s c p o t e h t i , y l l a n F i : i s c p o t l a i r e t a m y t i r o i r p h g h f o n o i t a s i i l a n F i . 4 . p u o r G a t n a d e V r o f d e g r e m e s c p o t i l a i r e t a m y l h g h 8 i . h c a o r p p a t n e m e g a n a m d e t a i t n e r e f f i d a s e r i u q e r l e v e l y t i l a i r e t a m n o n o i t c e s e h t o t r e f e r e s a e p l , s l i a t e d r e h t r u f r o F . e r e h d e t r o p e r n e e b e v a h t n e m s s e s s a y t i l a i r e t a m 2 2 0 2 e h t n i i y n a p m o C e h t r o f s c p o t y t i r o i r p h g h e v fi p o t e h t f o s i l i a t e D 296 e v i t i s o P + e v i t a g e N i s s y l a n a o i r a n e c s d n a t n e m s s e s s a k s i r e t a m i l c h t p e d - n i n a d e t c u d n o c s a h a t n a d e V e t a m i l c y b d e s o p s e i t i n u t r o p p o d n a s k s i r e h t d n a t s r e d n u y l e v i s n e h e r p m o c o t r o f s t u p n i i i s a d e s u g n e b e r a s e d u t s e s e h t f o s g n d n fi e h T i i . s s e n s u b r u o o t e g n a h c . i 0 5 0 2 y b s u t a t s o r e Z t e N e v e h c a o t p a m d a o r d n a y g e t a r t s n o b r a c s ’ y n a p m o C e h t : e d u c n l i s k s i r e s e h t g n i t a g i t i m i r o f s e g e t a r t s s a t n a d e V ’ s t e g r a t e t a m i l c r u O . 0 5 0 2 y b s s e n s u b i n o b r a c o r e Z t e N a g n e b i o t d e t t i m m o C o i r a n e c s e e r g e d - 2 s ’ i T B S h t i w d e n g i l a e r a e c u d e r o t l a o g w e n a h t i w , 2 2 0 2 Y F n i s t e g r a t y t i s n e t n i i i s n o s s m e G H G d e s i v e R m o r f 5 2 0 2 Y F y b % 0 2 y b s e s s e n s u b i l a t e m r u o f o y t i s n e t n i i i s n o s s m e G H G e h t e n i l e s a b 1 2 0 2 Y F a n o i t c u d e r G H G r i e h t k c a r t o t s r e i l p p u s 1 r e i t m r e t - g n o l h t i w k r o w o t d e t t i m m o C i s e g e t a r t s i i j h t w o r g m o r f s n o s s m e t e s f f o o t s t c e o r p n o i t a s n o b r a c e d n o g n k r o w y l e v i t c A i i • • • • l l e p o c S a p o e v e d o t s n a p d n a s n o s s m e 3 e p o c S g n s i r o t n e v n i i i i d e t r a t s s a h a t n a d e V s t c e o r p j . 4 2 0 2 Y F n i p a m d a o r n o i t c u d e r s n o s s m e 3 i i - w o l f o e n i l t s r fi s a d n ’ i I d e h c n u a l y n a p m o C e h t , 2 2 0 2 Y F n I d n a a r o t s e R f o s e m a n d n a r b e h t i i r e d n u m u n m u a n o b r a c l i g n p o e v e d l o s a l s i y n a p m o C e h t , y l r a l i m S i . a r t l U a r o t s e R e h t d n a p x e o t s i l n a p e h t d n a r e p p o c n o b r a c - w o l f o e n i l a , e d a c e d t x e n e h t r e v o s e n i l - t c u d o r p e s e h t f o n o i t c u d o r p n o b r a c - w o l r o f d n a m e d i g n w o r g e h t o t g n i r e t a c y b e r e h t l . s a t e m d n a e h T s s e n s u b i l e e t S & n o r I s a l l e w s a m u n m u A l i i r u o r o f . s t s o c e c n a i l p m o c d e s a e r c n i o t d a e l y a m t i , o s f i t n e t n o c n o b r a c e h t r o f t n u o c c a o t d e e n l d u o w y n a p m o C r o s e e f l a n o i t i d d a y a p y l l a i t n e t o p d n a s t c u d o r p s t i f o . M A B C g n i t n e m e p m l i s e i r t n u o c o t n i s t r o p m i r o f s e x a t e s a e r c n i y l l a i t n e t o p l d u o c M A B C f o n o i t a c i l p p a , o s A l t e k r a m d e s a e r c e d o t e u d e r u s o p x e k s i r s ’ y n a p m o C e h t : y t i n u t r o p p O . s s e c c a n o b r a c w o l a s d r a w o t n o i t i s n a r t i t a h t s e s n g o c e r a t n a d e V / w o l r o f d n a m e d i g n s a e r c n i n i d e t l u s e r s a h y m o n o c e e s i t r e p x e s t i e g a r e v e l n a c a t n a d e V l . s a t e m n o b r a c o r e z e h t t a e l i h w s e i t i n u t r o p p o e s e h t o t n i p a t o t s e c r u o s e r d n a . t n i r p t o o f n o b r a c s t i i g n c u d e r e m i t e m a s l e b a c i l p p a e b l l i w ) M A B C ( i m s n a h c e M j t n e m t s u d A r e d r o B i g n d e e c x e i s n o s s m e i s t s o c e v i t a r t s n m d a i i r o f s e i v e l , l s e u f l i s s o f r o f s t s o c d e s a e r c n i d n a , l s e v e l d e t t i m r e p n o b r a C e h t , e c n a t s n i r o F . g n i t r o p e r d n a g n i r o t i n o m r o f y l e k i l e r a i s n o s s m e i G H G i g n c u d e r r o g n i t i m i l t a d e m a i d e s a e r c n i o t e u d s n o i t a r e p o s ’ y n a p m o C e h t t c a p m i o t l s e v e l g n i y r a v e s o p y a m s k s i r n o i t i s n a r t , s e g n a h c e s e h t . y n a p m o C e h t o t s k s i r l a n o i t a t u p e r d n a l i a c n a n fi f o s e r u s s e r p r o t s e v n i d n a s e g n a h c y r o t a u g e r l i g n s a e r c n I s e r i u q e r y m o n o c e n o b r a c - r e w o l a o t i g n n o i t i s n a r T , i l s e g o o n h c e t , s n o i t a u g e r l , s e c i i l o p n i s e g n a h c e v i s n e t x e n o i t a t p a d a d n a n o i t a g i t i m s s e r d d a o t s t e k r a m d n a n o i g n d n e p e D . e g n a h c e t a m i l c o t d e t a e r l s t n e m e r i u q e r y t i n u t r o p p O d n a e g n a h C i n o i t a s n o b r a c e D : k s i R d n a k s R i e t a m i l C 1 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS f o s n o i t a c i l p m i l a i c n a n i F y t i n u t r o p p o r o k s i r e h t ) s n o i t a c i l p m i e v i t a g e n r o e v i t i s o p e t a c i d n I ( e t a g i t i m r o t p a d a o t h c a o r p p a , k s i r f o e s a c n I y t i n u t r o p p o / k s i r e h t g n i y f i t n e d i r o f e l a n o i t a R e v i t a g e N e r a s n o i t a r e p o l l a t a h t s e r u s n e a t n a d e V , h c a o r p p a n o i t a g i t i m r i e h t f o t r a p s A h t l a e h c i l b u p h t o b n o s t c a p m i e r e v e s e v a h n a c n o i t u l l o p r i A e t a c i d n I y t i n u t r o p p o r o d e fi i t n e d i k s i r r e h t e h w e u s s i l a i r e t a M . o N . S ) O / R ( k s R i y t i l a u Q r i A . 2 e h t e d u c n l i i s e g e t a r t s r e h t O . x O N d n a x O S r o f s t i m i l y r o t u t a t s e h t o t i g n m r fi n o c s e g n e l l a h c i g n g r e m e e h t g n i r e d s n o C i . t n e m n o r i v n e e h t d n a l l i w h c h w i , i i L Z H y b g n n m d n u o r g r e d n u n i l i l s e c h e V c i r t c e E y r e t t a B f o n o i t c u d o r t n i s n o i t a u g e r l w e n t c e p x e n a c a t n a d e V , n o i t u l l o p r i a o t d e t a e r l i i . s n o s s m e r e h t o d n a ) M P S ( l r e t t a M e t a u c i t r a P d e d n e p s u S g n c u d e r n i i l p e h . d e t n e m e p m l i i g n e b s e r u s a e m l a n o i t i d d a r o d n a i s n o s s m e i r i a f o t n e m e g a n a m r e t t e b s d r a w o t i g n k r o w e u n i t n o c l l i w a t n a d e V e v i t p a c m o r f d e c r u o s y g r e n e ’ s a t n a d e V f o % 0 9 y l r a e n h t i W : e d u c n l i 4 2 0 2 Y F r o f s e v i t a i t i n i / s e g e t a r t s e h t i s n o i t a u g e r l r e t c i r t s , s t n a p l r e w o p l a m r e h t d e s a b - l a o c s t i n u r e w o p w e n L L A V t a n o i t a l l a t s n i ) D G F ( n o i t a s i r u f l u s e d s a g - e u F l e t i s t a s V E f o t n e m y o p e d e s a e r c n l I • • s n o i t a u g e r l r e t c i r t s , . e . i , s t s o c e c n a i l p m o c : f o m r o f e h t n i l i s e g o o n h c e t l o r t n o c n o s s m e n i i i s t n e m t s e v n i e r i u q e r d u o w l i s h T . s d r a d n a t s w e n e h t t e e m o t s e g n a h c l a n o i t a r e p o d n a d n a s t n e m t s e v n i l a t i p a c t n o r f p u t n a c fi n g s i i e v l o v n i n a c i i g n n a t n a m d n a i g n i r o t i n o m r o f s t s o c l a n o i t a r e p o i g n o g n o f i y c n e c fi f e i l a n o i t a r e p o e h t t c a p m i o s a l n a c t I . e c n a i l p m o c l r e n a e c t p o d a r o s e s s e c o r p r i e h t y f i d o m o t d e r i u q e r e r a y e h t i l . s e g o o n h c e t i i . s n o s s m e r i a f o s t i m i l y r o t u t a t s w o e b s n o i t a r e p o l l l i a n a t n a M i n a c i s n o s s m e i r i a G H G - n o n s ’ y n a p m o C e h t e c u d e r o t e b l d u o c s e s n e p x e e s e h T . s e u n e v e r t c a p m i y l t n a c fi n g s i i t n e m e g a n a M i s n o s s m E & i j s t c e o r p g n i y f i t n e d i e v l o v n i i h c h w , l i d e p o e v e d g n e b e r a s p a m d a o r c fi c e p s - e t i S i s ’ y n a p m o C e h t e v o r p m i o t i s e s m e r p s ’ y n a p m o C e h t i e d s t u o d n a i n h t i w h t o b , B O I , L Z H ( s u t a t s e v i t i s o p - r e t a w d e n a t t a e v a h s e t i s r u o F i . o i t a r y t i v i t i s o p r e t a w • n o i t a r e p o f o n o i t a s i l i t u y t i c a p a c e h t n i e s a e r c e D s e s s o l y t i v i t c u d o r p n i g n i t l u s e r l l t n e m y o p e d y g o o n h c e t n o g n k n a b s i i y n a p m o C e h t , e g a s u r e t a w h s e r f e c u d e r o T • y n a p m o C e h t f o n o i t a t u p e r ) M M B d n a a d n i I n r i a C d n a y t i l i i b d e r c f o s s o l n i g n i t l u s e r s t c i l f n o c l a g e L • • e v i t a g e N r e t a w r e v o c e r d n a i h s n e p e r l d n a e v i t i s o p r e t a w e m o c e b o t d e t t i m m o c s i a t n a d e V s a h d n a s n o i t a r e p o ’ s a t n a d e V r o f t u p n i l a c i t i r c a s i r e t a W k s R i r e t a W . 3 d n a i e t a p c i t n a o t a t n a d e V r o f t n a t r o p m i s i t i , e r o f e r e h T n o s n o i t a u g e r l d e s a e r c n i f o s t c a p m i l a i t n e t o p e h t s s e s s a . s n o i t a r e p o s s e n s u b r i e h t i d n a e s u e r h t o b i i g n s m i x a m d n a l a w a r d h t i w r e t a w i i g n s m n m i i n o s u c o f a h t i w h t i W . s c i t s g o i l d n a s e u n e v e r t c a p m i o t s a l l e w s a f f a t s f o o t s n o i t a r e p o t a e c a p n l i y g e t a r t s t n e m e g a n a m r e t a w e v i s n e h e r p m o c s a h a t n a d e V d n a l a r u t l u c i r g a , l i i a p c n u m y e k r o f d e n a t n a m s i i i r e t a w f o n o i t a c o l l a r i a f t a h t e r u s n e r o f k s i r l a i r e t a m a s i y t i l i b a l i a v a r e t a w n i e g n a h c , i g n d o o l f . s a G d n a l i O n r i a C d n a L Z H , O C L A B e k i l s e s s e n s u b i i g n m o c e b s d r a w o t s s e r g o r p o t s e v i t a i t i n i t n a c fi n g s i i n e k a t r e d n u s a h a t n a d e V : e v i t i s o p r e t a w h t i w r e t a w e h t f o y t i l i i b s s e c c a d n a y t i l i b a l i a v a , i h c h w o t e b l l i l w s r e d o h e k a t s d n a s n o i t a r e p o r u o r o f y t i l a u q d e r i u q e r : n i t l u s e r n a c s t c a p m i e s e h T . d e t c a p m i . n i e t a r e p o y n a p m o C e h t e r e h w s n o g e r e h t n i i s r e s u l a i r t s u d n i e u d , s t c i l f n o c l r e d o h e k a t s l d e t a e r - r e t a w e b l d u o c e r e h T . y h p o s o l i i h p e g r a h c s d - o r e z a s w o l l o f y n a p m o C e h T . r e t a w l f o e c y c e r o t e n o r p s a e r a d n a s a e r a d e s s e r t s - r e t a w h t o b n i s n o i t a r e p o , i p h s d r a w e t s r e t a w d e r u t r u n s a h y n a p m o C e h t , s t o o r s s a r g e h t t A . 0 3 0 2 y b i s e d o b y t i v i t c u d o r p t c a p m i o t , s n o i t a r e p o t p u r s d i o t l a i t n e t o p e h t t n e m e g a n a M f o t u O . r e t a w e t s a w f o g n i l c y c e r d n a t n e m e v o r p m i s s e c o r p r o f s e t i s r u o s s o r c a m o r f e t s a w i g n c u d e r n o d e s s u c o f e r a % 7 7 , e n i l e p p i s t c e o r p j r e t a w l a t o t e h t j r o a m h c a e r o f d e t e p m o c l s a w y d u t s i r e t a w e s w - e t i s d e l i a t e d , 3 2 0 2 Y F g n i r u D s n o i t a r e p o n i r e t a w e t s a w g n s u e r s a i l l e w s a s n o i t a r e p o ) d n o y e b d n a 0 3 0 2 ( y t i l i b a l i a v a r e t a w i r o f y d u t s n s a b m r e t - g n o l i g n d u c n l i e t i s e h t , ) I M W I ( s e v i t a i t i n i t n e m e g a n a m d e h s r e t a w d e t a r g e t n i r i e h t f o t r a p s A i g n g r a h c e r r e t a w d n u o r g d n a g n i t s e v r a h r e t a w n a r i g n i t a e r c s i y n a p m o C e h t f o % 3 1 t s o m A l . y t i l i b a l i a v a r e t a w h s e r f e v o r p m i o t s e i t i n u m m o c r o f s t c e o r p j s a e r a e s e h t n i l j e r a s t c e o r p d e t a e r - r e t a w s ’ y n a p m o C . 7 0 f o o i t a r y t i v i t i s o p r e t a w e v e h c a o t i t e g r a t a t e s s a h y n a p m o C e h t , 4 2 0 2 Y F r o F • • • t n e m t a e r t - e r p f o e e r g e d h g h i o t e u d t c u d o r p f o t s o c f i s e u s s i e g a r o t s , g n i l d n a h d n a e u s s i e h t s i y t i l a u q f i t c i l f n o c e h t f o e s u a c e h t s i y t i l i b a l i a v a , t n e m e g a n a m r e t a w e v i t c e f f e t a h t s e v e i l e b a t n a d e V s e v i t a i t i n i t n e m e g a n a m d e h s r e t a w d e t a r g e t n I y l l i a c e p s e , s k s i r l d e t a e r - r e t a w e g a n a m o t m e h t l p e h l l i w ) I M W I ( r e t a w c fi c e p s i n i e s a e r c n i d n a s n e d r u b l i a c n a n fi r e h g H i • r o f e u a v l e t a e r c d n a e t a r e p o o t e c n e c i l l i a c o s e h t i n a t n a m i l . s r e d o h e k a t s 297 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT f o s n o i t a c i l p m i l a i c n a n i F y t i n u t r o p p o r o k s i r e h t ) s n o i t a c i l p m i e v i t a g e n r o e v i t i s o p e t a c i d n I ( e t a g i t i m r o t p a d a o t h c a o r p p a , k s i r f o e s a c n I y t i n u t r o p p o / k s i r e h t g n i y f i t n e d i r o f e l a n o i t a R e v i t a g e N l i a c o S a e v a h o t e t i s y r e v e r o f l l a c s d r a d n a t s e c n a m r o f r e p l i a c o s ’ s a t n a d e V • s e i t i n u m m o c e h t h t i i i l w p h s n o i t a e r s u o n o m r a h a g n n a t n a M i i i f o n o i t a t n e m e p m l i e h t e v i r d o t s i l e o r e s o h w , ) M P S ( r e g a n a M e c n a m r o f r e P d n a i i g n n a t b o r o f l i a c u r c s i s e t a r e p o y n a p m o C e h t i h c h w n i n o i t a c o l e h t l i t a s e p c n i r p e c n a m r o f r e p l i a c o s s e i t i n u m m o c e s e h T . e t a r e p o o t e c n e c i l l i a c o s e h t i g n n a t e r i e g a l l i v d n a s g n i t e e m p u o r g y t i n u m m o c s t c u d n o c l y l r a u g e r y n a p m o C e h T s g n i t e e m l i c n u o c , s y e v r u s n o i t p e c r e p – e t a r e p o o t e c n e c i l l i a c o s e v o r p m i o t n u g e b k r o W w e i v e r s t n e m e r i u q e r C P F I , w e i v e r e c n a m r o f r e p l i a c o s , t n e m s s e s s a y t i l a i r e t a m • • n a i r a r g a g n d u c n i l i , s d n u o r g k c a b f o e g n a r e d w a s s a p m o c n e i , l s e p o e p s u o n e g d n i i , s n o i t a u p o p l n a b r u - i m e s , s e i t e c o s i e g a t s e u q n u i a n i s i y t i n u m m o c h c a E . s r e l l e w d - y t i c d n a t n e r e f f i d s s e s s o p y e h t , t l u s e r a s a d n a , t n e m p o e v e d l f o e h t m o r f s n o i t a t c e p x e d e i r a v d n a s e v l e s m e h t r o f s n o i t a r i p s a . y n a p m o C s e t a t i s s e c e n s e i t i n u m m o c e s r e v i d e s e h t f o l y t i x e p m o c e h T - s s e c o r p a y b d e d u g i , h c a o r p p a t n e r a p s n a r t d n a e v i s u c n l i n a t s o h h t i w i g n g a g n e n e h w y g e t a r t s d e s a b - d e e n d n a n e v i r d l s r e d o h e k a t s l l a t a h t s e r u s n e y t i v i s u c n l I . s e i t i n u m m o c e t a c i d n I y t i n u t r o p p o r o d e fi i t n e d i k s i r r e h t e h w e u s s i l a i r e t a M . o N . S 298 ) O / R ( k s R i t n e m p o e v e D l d n a t n e m e g a g n E y t i n u m m o C . 4 e v i t a g e N s e k a t r e d n u a t n a d e V , e c n a m r o f r e p y t e f a s g n i v o r p m i o t t n e m t i m m o c e r e c n s a h t i i W s e e y o p m e l ’ s a t n a d e V f o y t e f a s d n a h t l a e h e h t g n i t c e g e N l k s R i , h t l a e H . 5 i p h s r e n w o f o e s n e s a r e t s o f n a c y n a p m o C e h t , s e s s e c o r p o t e t u b i r t n o c y l e v i t c a o t m e h t r o f s e i t i n u t r o p p o e t a e r c d n a t c a p m i y a m t a h t s t c e o r p j f o i g n n n a p l d n a t n e m p o e v e d l e h t . s e v i l r i e h t l s s e d r a g e r , d r a e h e r a s e c o v i r i e h t d n a , d e t n e s e r p e r e r a i g n k a m - n o s c e d i i n i s r e b m e m y t i n u m m o c g n i v l o v n i . e g a t i r e h l a r u t l u c r o d n u o r g k c a b i c m o n o c e o c o s i r i e h t f o y B l e c a p k r o w l l a r e v o e h t g n i v o r p m i d n a s e i t i l a t a f i g n c u d e r o t h c a o r p p a d e s s u c o f a , y l t s r i F . y n a p m o C e h t r o f s e c n e u q e s n o c t n a c fi n g s e v a h n a c i i . y t e f a s . r e w o p n a m f o y t i l i b a l i a v a e h t n i n o i t c u d e r a o t d a e l n a c t i d n a , y t e f a S i g n e b - l l e W d n a e f a s a e r u s n e o t y n a p m o C e h t y b n e k a t s e r u s a e m e h t f o e m o s e r a i g n w o l l o F : l e c a p k r o w y h t l a e h a t n a d e V s s o r c a m a r g o r P ) M R C ( t n e m e g a n a M k s R i l a c i t i r C f o n o i t a t n e m e p m l I i g n n r a e l , s e i t i l a t a f f o s e s u a c t o o r i e h t g n s y l a n a t a d e m a i s i m a r g o r p s h T i : s e t i s e r u t u f t n e v e r p o t d n u o r g e h t n o s n o i t c a e v i t c e r r o c g n i t n e m e p m l i , d n a m e h t m o r f j r o a m e h t , 4 2 0 2 Y F r o f d n a d e t r a t s s a h n o i t a t n e m e p m l i M R C e h T . s t n e d c n i i f o s e s u a c e e r h t p o t s a d e fi i t n e d i e r e w h c h w i , k s i r f o s a e r a e e r h t n o e b l l i w s u c o f , n o i t c a r e t n i , i e n h c a m - n a m n o i t a g e r g e s n a i r t s e d e p - e c h e v i l , . e . i i , r a e y s h t s e i t i l a t a f i s t h g e h t a k r o w d n a t o n o d s e i r u n j i l a t a f t a h t g n i r u s n e n o s u c o f a h t i : W e r u t c u r t s a r f n i y t e f a s g n i v o r p m I s t n e m e v o r p m i d e s i t i r o i r p e v a h e w , e r u t c u r t s a r f n i e f a s f o k c a l e h t o t e u d n e p p a h m o r f e s o h t s a h c u s s k s i r i i i e s m n m p e h l l l i w s h T i . e r u t c u r t s a r f n i y t e f a s r u o n i c t e , k s i r l t n e m e g n a t n e , n o i t c a r e t n i i e n h c a m / n a m i e s n a g r o o t e u n i t n o c l l i w y n a p m o C e h T : i g n n a r t i i r e n t r a p s s e n s u b d n a e e y o p m E l e h t e c r o f n e r i o t i s n o s s e s O E C p u o r g d n a s r a n b e w i l a u t r i v , i s g n n a r t i e t i s - n o n o i t a u t i s e f a s n u y n a f o e s a c n i i k r o w g n p p o t s d n a y l e f a s g n k r o w i f o e c n a t r o p m i d n u o r g e h t n o • • • e f a s n u o t e u d l l i e m o c e b r o d e r u n j i e r a s e e y o p m e l n e h W r i e h t m r o f r e p o t l e b a n u e b y a m y e h t , s n o i t i d n o c i g n k r o w . y c n e c fi f e i d n a y t i v i t c u d o r p d e s a e r c e d n i g n i t l u s e r , s e i t u d y l t a e r g e b n a c e c r o f k r o w e h t f o l e a r o m e h t , y l l a n o i t i d d A . y t e f a s d n a h t l a e h n o s u c o f f o k c a l a y b d e t c e f f a d e s a e r c n i n i t l u s e r n a c y t e f a s d n a h t l a e h e s i t i r o i r p o t g n i l i a F , s e i r u n j i r o s t n e d c c a i f o t n e v e e h t n I . n o i t a g i t i l f o s t s o c r o f n o i t a s n e p m o c i g n k e e s s t i u s w a l l e fi y a m s e e y o p m e l , s e i t i l a t a f , s e s a c e m e r t x e n i , r o s n o i t a o i v l y t e f a s d e t a e p e R r o f t n e m e g a n a m e c n e u q e s n o c t n e g n i r t s r e g g i r t n a c . e m o c n i f o s s o l d n a , s e s n e p x e l i a c d e m , s e g a m a d , s g o d h c t a w y r t s u d n i , i s e d o b y r o t a u g e R l . s m a e t t n e m e g a n a m l a g e l n e v e r o , s e n fi , s e i t l a n e p e s o p m i l y a m s r e d o h e k a t s d n a . y n a p m o C e h t i t s n a g a n o i t c a VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 2. SECTION B: MANAGEMENT AND PROCESS DISCLOSURES The National Guidelines for Responsible Business Conduct (NGRBC) as prescribed by the Ministry of Corporate Affairs advocates nine principles referred as P1-P9 as given below: P1 Businesses should conduct and govern themselves with integrity in a manner that is ethical, transparent, and accountable P2 Businesses should provide goods and services in a manner that is sustainable and safe P3 Businesses should respect and promote the well-being of all employees, including those in their value chains P4 Businesses should respect the interests of and be responsive towards all its stakeholders P5 Businesses should respect and promote human rights P6 Businesses should respect, protect, and make efforts to restore the environment P7 Businesses when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent P8 Businesses should promote inclusive growth and equitable development P9 Businesses should engage with and provide value to their consumers in a responsible manner P1 P2 Policy and management processes Yes Yes P3 Yes P4 Yes P5 Yes P6 Yes P7 Yes P8 Yes P9 Yes 1. a. Whether your entity’s policy/policies cover each principle and its core elements of the NGRBCs. (Yes/No) b. Has the policy been approved by the Board? (Yes/No) c. Web Link of the Policies, if available 2. Whether the entity has translated the policy into procedures. (Yes/No) 3. Do the enlisted policies extend to your value chain partners? (Yes/No) Yes Yes Yes Yes Yes Yes Yes Yes Yes Code of business conduct and ethics: Code of Business Conduct and Ethics (www. vedantalimited. com) Supplier Code of Conduct: Supplier Code of Conduct_May 2022.pdf Supplier and business partner sustainability management policy: Vedanta Supplier and Business Partner Sustainability Management Policy.pdf (www. vedantalimited. com) Human Rights Policy: Vedanta Human Rights Policy. pdf (www. vedantalimited. com) Health, Safety & Environment Policy: Vedanta HSE Policy.pdf (www. vedantalimited. com) Stakeholder Engagement Standard: External- Stakeholder- Engagement. pdf (www. vedantalimited. com) Human Rights Policy: Vedanta Human Rights Policy. pdf (www. vedantalimited. com) Code of business conduct and ethics: Code of Business Conduct and Ethics (www. vedantalimited. com) Social Policy: Vedanta Social Policy.pdf (www. vedantalimited. com) Stakeholder Engagement Standard: External- Stakeholder- Engagement. pdf (www. vedantalimited. com) Health, Safety & Environment Policy: Vedanta HSE Policy.pdf (www. vedantalimited.com) Biodiversity Policy: Vedanta Biodiversity Policy.pdf (www. vedantalimited.com) Water Management Policy: Vedanta Water Policy.pdf (www. vedantalimited.com) Energy & Carbon Policy: Vedanta Energy & Carbon Policy. pdf (www. vedantalimited.com) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 299 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 4. Name of the national and international codes/ certifications/labels/standards (e.g., Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trustea) standards (e.g., SA 8000, OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. 5. Specificcommitments, goals and targets set by the entitywithdefinedtimelines,if any. 6. Performance of the entityagainstthespecific commitments, goals, and targets along with reasons in case the same are not met. P1 P2 P3 P4 P5 P6 P7 P8 P9 ISO 31000 ISO 9001 ISO 45001, OHSAS 18001 ISO 14001 ISO 9001 ISO 27001 In line with the Company's ESG strategy “Transforming for Good", there are nine goals listed under three pillars: Transforming communities, transforming the planet, and transforming the workplace: AIM 1: Keep community welfare at the core of business decisions. AIM 2: Empowering over 2.5 million families with enhanced skillsets. AIM 3: Uplifting over 100 million women and children through education, nutrition, healthcare and welfare AIM 4: Net-carbon neutrality by 2050 or sooner. AIM 5: Achieving net water positivity by 2030. AIM 6: Innovating for a greener business model. AIM 7: Prioritising safety and health of all employees. AIM 8: Promote gender parity, diversity, and inclusivity. AIM 9: Adhere to global business standards of corporate governance. To track our progress towards their aims and targets, Vedanta has developed an ESG scorecard. This helps monitor the Company’s performance and take corrective actions where necessary. For FY 2023’s performance on the set goals, please refer Vedanta's Sustainability Report 2023. Governance, leadership, and oversight 7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets, and achievements Please refer to Integrated Report FY 2022-23 for the statement. 8. Details of the highest authority responsible for implementation and oversight of the Business Responsibility policy (ies). 9. Does the entity have a specifiedCommitteeofthe Board/Director responsible for decision-making on sustainability related issues? (Yes/No). If yes, provide details. The Group CEO, as a member of the Board-level ESG Committee and the chair of group ESG-Executive Committee (ESG-ExCo) is responsible for the implementation and oversight of the Business Responsibility policy(ies). Yes At Vedanta, the ESG Board Committee is the top decision-making body for all ESG matters. Together with our Group Sustainability and ESG function, it is responsible for implementing, promoting, and monitoring initiatives under our 'Transforming for Good' agenda. As per updated Terms of Reference of the ESG Board Committee, the Group HSE Head and ESG Director are permanent invitees to the Committee meetings. Committee Composition: Mr. Upendra Kumar Sinha as the Chairperson Members of the Committee are Mr. Akhilesh Joshi, Mr. Sunil Duggal, and Ms. Priya Agarwal. 10. Details of Review of NGRBCs by the Company: Subject for Review Indicate whether review was undertaken by Director/ Committee of the Board/Any other Committee Frequency (Annually/Half Yearly/Quarterly/ Any other – please specify) Performance against above policies and follow-up action Compliance with statutory requirements of relevance to theprinciples,andrectification of any non-compliances 11. Has the entity carried out independent assessment/ evaluation of the working of its policies by an external agency? (Yes/No). If yes, provide name of the agency. 300 P1 Y P2 Y P3 Y P4 Y P5 Y P6 Y P7 Y P8 Y P9 Y P2 P3 P1 P4 P5 P7 P6 P8 The policies of the Company are reviewed annually by department heads/director/ board committees/board members, wherever applicable. P9 P2 P1 P5 Yes. Status of compliance with all the applicable statutory requirements is reviewed by the Board-level ESG Committee on a half-yearly basis. P3 P6 P8 P7 P4 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9 Each year, the Company undertakes an audit exercise, known as the Vedanta Sustainability Assurance Process audit conducted by an external agency to evaluate the workings of these policies. This audit is conducted across all business locations to ensure Vedanta Sustainability Framework (VSF) compliance. TheVSAPoutcomesarespecificallytrackedbytheBoard-levelESGCommitteethatreportstotheGroup Executive Committee, which, in turn, reports to the Board. The most recent VSAP audit was during FY 2022-23 and DNV-GL was engaged as the external agency for the same. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 3. SECTION C: PRINCIPLE-WISE PERFORMANCE DISCLOSURE This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorised as “Essential” and “Leadership”. While the essential indicatorsareexpectedtobedisclosedbyeveryentitythatismandatedtofilethisreport,theleadershipindicatorsmaybe voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and ethically responsible. 3.1 PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent, and Accountable UN SDG mapped: Essential Indicators 1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year: Segment Total number of training and awareness programmes held Topics/principles covered under the training and its impact %age of persons in respective category covered by the awareness programmes Board of Directors 3 Topic 1: Training on ESG topics for the Independent Directors in collaboration with McKinsey & Company which included: 75% - - Educating on key ESG issues for resources companies and enable incorporation of ESG in decision making and operations; Build and scale internal capability through deeper knowledge and understanding on key ESG topics for different functional teams; and - AdvancethefieldofSustainabilitythroughresearchand outreach. Topic 2: Training on Cybersecurity/Data Governance in collaboration with Data Security Council of India (DSCI) Topic 3: Engagement of directors in ESG and sustainability matters through Board-level ESG Committee meetings, in turn, ensuring participation in overall oversight and transformation initiatives. Key Managerial Personnel 3 Topic 1: Training on ESG topics in collaboration with McKinsey & Company. 75% Topic 2: Training on Sustainability topics via a 2-day Sustainability 101 course Topic 3: Engagement of KMPs in ESG and sustainability matters through Board-level ESG Committee meetings, in turn, ensuring participation in overall oversight and transformation initiatives. Employees other than BoD and KMPs Workers - - Topic 1: Training on Code of conduct Topic 2: Training on Cyber security Topic: Occupational Health and Safety 100% 100% 301 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 2. Details of fines/penalties/punishment/award/compounding fees/settlement amount paid in proceedings (by the entity or by directors/KMPs) with regulators/law enforcement agencies/judicial institutions, in the financial year, in the following format: NGRBC Principle Name of the regulatory/enforcement agencies/judicial institutions Amount (In `) Brief of the Case Has an appeal been preferred? (Yes/No) Monetary Penalty/Fine Settlement Compounding Fee There were 0 cases with the regulators/judicial institutions leading to fines,penalties,punishmentinthefinancialyear. There was no settlement amount paid in proceedings by the entity or by directors/KMPs, in the financial year Non-Monetary NGRBC Principle Name of the regulatory/enforcement agencies/judicial institutions Amount (In `) Brief of the Case Has an appeal been preferred? (Yes/No) Imprisonment Punishment There were 0 cases with the regulators/judicial institutions leading to imprisonment, punishmentinthefinancialyear. 3. Of the instances disclosed in Question 2 above, details of the Appeal/Revision preferred in cases where monetary or non-monetary action has been appealed. Case Details Name of the regulatory/enforcement agencies/judicial institutions Not Applicable 4. Does the entity have an anti-corruption or anti-bribery policy? If yes, provide details in brief and if available, provide a web-link to the policy. Yes. Vedanta has developed and implemented a robust Policy on business conduct. The Code of Business Conduct & Ethics(COBCE)coversaspectsofanti-bribery,confidentiality,conflictofinterest,anti-trust,insidertrading,environment health and safety, and whistle-blower policy. The same can be found on Page 5 of the following link: https://vedantalimited. com/CorporateGovernance/Code%20of%20Business%20Conduct%20and%20Ethics.pdf The implementation of COBCE is supported by the following additional policies and guidance notes: • The Insider Trading Prohibition Policy (https://www.vedantalimited.com/uploads/corporate-governance/policies_ practices/VEDL-Insider-Trading-Prohibition-Code-November-06-2020-eng.pdf) • Anti-Trust Guidance Notes (https://www.vedantalimited.com/uploads/corporate-governance/policies_practices/ Antitrust-guidance-notes-vedanta-eng.pdf) • The Supplier Code of Conduct (https://www.vedantalimited.com/uploads/corporate-governance/policies_practices/ Supplier-Code-of-Conduct-May-2022.pdf) • The Whistle Blower Policy (Annexure 3 of Code of Business Conduct & Ethics: https://vedantalimited.com/ CorporateGovernance/Code%20of%20Business%20Conduct%20and%20Ethics.pdf) The Company policy endeavour to comply with all applicable Anti-Corruption Legislations that the Company is subject to, including the Prevention of Corruption Act, 1988 which criminalises bribes accepted by Public Servants, the UK Bribery Act, and the U.S. Foreign Corrupt Practices Act. Management of risks likely to result from any infringement to anti- corruption/bribery policy of the Company is embedded in the Company’s risk management framework (Further details at risk management section of IR 2022-23). Details on procedures adopted by Vedanta to deal with complaints on bribery/ corruption can be found on Page 22 of the Code of Business Conduct & Ethics. Eachyear,allemployeesarerequiredtoaffirmtheircommitmenttotheCodeofConduct,includingthepoliciesaddressing bribery and corruption. As part of Vedanta’s comprehensive approach, trainings are provided on anti-corruption and bribery to 100% of our employees, as part of trainings on Code of Conduct. 5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/corruption: Directors KMPs Employees Workers 302 FY 2023 FY 2022 0 0 0 0 0 0 0 0 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 6. Details of complaints with regard to conflict of interest: FY 2023 FY 2022 Number Remarks Number Remarks Number of complaints received in relation to issues of Conflict of Interest of the Directors Number of complaints received in relation to issues of Conflict of Interest of the KMPs No complaints received No complaints received No complaints received No complaints received 7. Provide details of any corrective action taken or underway on issues related to fines/penalties/action taken by regulators/law enforcement agencies/judicial institutions, on cases of corruption and conflicts of interest. NA 3.2 PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe UN SDG mapped: Essential Indicators 1. Percentage of R&D and capital expenditure (capex) investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and capex investments made by the entity, respectively. Previous Financial Year 0%1 R&D* Current Financial Year Value-Added Business (VAB)- `13.05 lakh Aluminium - `67 lakh HZL R&D Opex: `1,120 lakh HZL R&D Capex: `64.25 lakh Details of improvements in environmental and social impact Vedanta recognises the importance of aligning with evolving consumer preferences for environmentally friendly products in order to maintain our market share. To uphold this commitment,theCompanyisdirectingasignificantportionoftheirresearchanddevelopment (R&D) expenditures towards the decarbonisation of their operations and the provision of more sustainable products to customers. The Company has adopted a proactive approach by embracing new technologies and enhancing their processes and standards. Some of the R&D initiatives being undertaken across business segments: • • • In their Aluminium business, Vedanta has established a dedicated R&D vertical with a robust pipeline of over 20 initiatives spanning areas such as process improvement, waste utilisation, and product development. In FY 2022, the Company achieved a milestone by becomingthefirstIndianaluminiumproducertomanufacturelow-carbonaluminium products under the brand name 'Restora.' The Restora brand offers two product lines: Restora (low-carbon aluminium) and Restora Ultra (ultra-low-carbon aluminium). At HZL, R&D around Zn metal recovery from treatment of lead concentrates, and process for controlling concentrate impurities while using non-hazardous cost-effective reagents is underway. Vedanta’s Iron and Steel business has partnered with IIT Bombay (IIT-B) on an R&D project to develop cost-effective technology for producing Green Steel using hydrogen instead of coke in theirmanufacturingprocesstargetingsignificantcarbonfootprintreductioninironandsteel space. We also have had good success with replacing coke with alternatives like Briquettes. CAPEX** HZL- plant at Zinc 94% Commissioning of Zero Liquid discharge (RO-ZLD) plants, Dry plant, turbine revamping, etc. Smelter Debari- `46 crore Dry Tailing Stack- `485 crore Turbine Revamping -`124 crore *% R&D calculated as ESG R&D/Total R&D expenditure. Total R&D expenditure is considered including salaries, material cost, R&M etc. ** % CAPEX calculated as CAPEX related to ESG/Total CAPEX expenditure 1. Numbers for FY2022 have not been consolidated 303 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 2. Does the entity have procedures in place for sustainable sourcing? (Yes/No) Yes. Sustainable sourcing is part of Vedanta’s Business Partner Management practices. The Company is committed toconductingbusinessonlywiththosebusinesspartnerswhocanalignwiththefilteringcriterialaiddownduringthe on-boarding process. The Company has integrated clauses related to HSE practices and use of child and forced labour in our Supplier Code of Conduct (SCOC) and it is mandatory for all suppliers to sign the SCOC. All Business Units (BUs) have a supply chain strategy in place that sets clear priorities for the vendors they engage with. Vedanta’s Supplier and Contractor Sustainability Management Policy helps implement human rights practices across the supply chain. Through this code and policy, the Company ensures that their suppliers comply with all the relevant legislation including labour and human rights laws. Vedanta has procedures in place to ensure adherence to the SCOC, including HSE criteria, MSA compliance, environmental compliance,etc.Allsignificantsuppliersarerequiredtohaveanadequatesysteminplacetoaddressthehumanrights concerns of their workforce. The Company regularly undertakes inspections and audits of all key suppliers and problematic issues are communicated to the contractor, and undertakes sustainability screening on human rights and child labour, environment, and labour aspects for all new suppliers and contractors. 3. Describe the processes in place to safely reclaim your products for reusing, recycling, and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste. Ensuring safe and responsible waste management is a top priority for the Company’s businesses. Vedanta has established awastemanagementsystemdesignedtohandlewasteefficientlyandresponsibly.Themanagementofwastestreamsis regulated by the "The resource use and waste management" Technical Standard, along with its accompanying guidance notes. These standards are an integral part of the Vedanta Sustainability Framework and have been developed in accordance with the guidelines set by ICMM (International Council on Mining and Metals) and IFC (International Finance Corporation) Performance Standards. (a) Plastics (including packaging): Vedanta’s product portfolio includes metals and minerals which are supplied to the customers without any packaging material. All the plastic waste acquired through suppliers is disposed through certifiedthirdparties. (b) E-waste:NotMaterialtoVedanta’soperation.Allthee-wasteisdisposedthroughcertifiedthird-partyagenciesas per e-waste management and handling rules. (c) Hazardous waste: The hazardous waste comprises of used/spent oil, waste refractories, spent pot lining and residual sludge from smelters. All the hazardous wastes are sent to government authorised handlers or recyclers. (d) Other waste: Non-hazardous wastes include fly-ash (from captive and merchant power plants), red mud (aluminium refinerywaste),jarofix(fromzincsmelting),slag,limegrit(processresiduesfromsmeltersandaluminiumrefineries) and phosphor gypsum (phosphoric acid plant). These non-hazardous wastes are termed High-Volume-Low-Toxicity (HVLT)wastes.HVLTwastesarestoredintailingsdams/ash-dykesorothersecurelandfillstructuresbeforebeing sent to other industries as raw materials – thereby recycling the waste stream. Other non-hazardous wastes are sent for recycling, disposed, or incinerated. 4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes/No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same. No. Vedanta does not fall under Extended Producers Responsibility (EPR) regime under Plastic Waste Management Rules, 2016, according to which it is the responsibility of Producers, Importers and Brand-owners to ensure processing of their plastic packaging waste through recycling, re-use, or end of life disposal. 304 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 3.3 PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains UN SDG mapped: Essential Indicators 1.a. Details of measures for the well-being of employees % Of employees covered by Category Total (A) Permanent employees Health insurance Accident insurance Maternity benefits Paternity benefits Day Care facilities Number (B) % (B/A) Number (C) % (C/A) Number (D) % (D/A) Number (E) % (E/A) Number (F) % (F/A) Male Female Total 9,858 2,206 9,858 2,206 100% 100% 9,858 2,206 12,064 12,064 100% 12,064 Other than Permanent employees Male Female Total 191 71 262 112 11 123 59% 15% 47% 110 11 121 100% 100% 100% 58% 15% 46% 0 2,206 2,206 0 67 67 100% 94% 9,858 100% 86% 165 0 165 9,858 2,206 12,064 7 2 9 100% 100% 100% 4% 3% 3% 1.b. Details of measures for the well-being of workers: % Of workers covered by Category Total (A) Permanent workers Health insurance Accident insurance Maternity benefits Paternity benefits Day Care facilities Number (B) % (B/A) Number (C) % (C/A) Number (D) % (D/A) Number (E) % (E/A) Number (F) % (F/A) Male Female Total 4,339 4,339 84 84 4,423 4,423 100% 100% 100% 4,339 84 4,423 Other than Permanent workers Male Female Total 63,133 41,124 1,796 891 64,929 42,015 65% 50% 65% 41,124 891 42,015 100% 100% 100% 65% 50% 65% 0 80 80 0 884 884 3,288 76% 3,499 95% 0 3,288 80 3,579 11,797 19% 28,344 49% 0 11,797 760 29,104 81% 95% 81% 45% 42% 45% 2. Details of retirement benefits, for Current Financial Year and Previous Financial Year: Benefits PF Gratuity ESI Others – medical, term life and accidental coverage FY 2023 FY 2022 No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.) No. of employees covered as a % of total employees No. of workers covered as a % of total workers Deducted and deposited with the authority (Y/N/N.A.) 99% 100% 100% - 100% 100% 99% - Y Y Y - 99% 100% 100% - 100% 100% 100% - Y Y Y - 305 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 3. Accessibility of workplaces Thepremises/officeswherepeoplewithdisabilitiesarepresentareequippedwithenablinginfrastructuresuchasramps, elevators to accommodate wheelchair access, and washrooms with wheelchair access, which are as per requirements of Rights of Persons with Disabilities Act 2016. Vedanta is in the process of increasing the inclusive infrastructure thatenablesaccesstoPeoplewithDisabilityacrossBUs.Forinstance,inBUssuchasHZLandTSPL,100%ofoffice buildings/spaces have ramps, as well as washrooms and elevators with wheelchair access. Moreover, HZL has also implemented infrastructure to assist people with visual impairment. Infrastructure is also present at some locations of Cairn, ESL and VZI. As a next step, the Company is working on a roadmap in accordance with the guidelines and Space Standards for Barrier Free environment for disabled persons, which will ensure standardised inclusive infrastructure across all our sites and offices.Thisroadmapwillhelpusestablishstandardisedinfrastructureacrossalloursitesandoffices,ensuringequal accessibility for everyone. 4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy. Vedanta takes all the efforts to maintain adequate representation of persons with disabilities in its workforce and is in compliance with the provisions of the Rights of Persons with Disabilities Act, 2016. Some of the key provisions under RPDA that Vedanta complies with includes: • • • Equality and Non-discrimination: Vedanta ensures that there is no discrimination against persons with disabilities in aspects, including recruitment, promotion, training, and work-related opportunities. Accessibility: Vedanta ensures that their premises/facilities are accessible to persons with disabilities. This includes makingreasonableaccommodationsandmodificationstophysicalinfrastructure. Equal Opportunities: Vedanta provides equal opportunities for career advancement, job security, and promotion for persons with disabilities. Vedanta as guided by their Code of Business Conduct and Ethics have zero tolerance against discrimination of any kind. Policy can be accessed from- https://www.vedantalimited.com/CorporateGovernance/Code%20of%20Business%20 Conduct%20and%20Ethics.pdf 5. Return to work and Retention rates of permanent employees and workers that took parental leave. Gender Male Female Total Permanent employees Permanent workers Return to work rate Retention rate Return to work rate Retention rate 100% 99% 100% 89% 84% 89% - - - - - - 6. Is there a mechanism available to receive and redress grievances for the following categories of employees and workers? If yes, give details of the mechanism in brief. Yes/No Permanent Workers Yes. Employees can raise the grievances with their respective line managers, and/or HR. Furthermore, Vedanta has formal channels in place including a 24*7 hotline which are accessible for all employees to raise any grievances. To ensure a streamlined process, Vedanta has implemented an online Portal across all BUs. This platform allows employees to log their complaints and seek resolution. Additionally, the Company has dedicated HR Single Points of Contact (SPoCs) who are responsible for handling and resolving grievances. A unified Human Resource Management System (HRMS) system Darwinbox has also been implemented. This system includes a dedicated employee helpdesk portal that is accessible to employees throughout the Company, including business partners. This portal serves as a centralised hub for addressing employee queries and concerns. Other than Permanent Workers Yes, as a mandatory requirement, all business partners have a formal grievance redressal mechanism to be used by contractual employees. 306 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 7. Membership of employees and workers in association(s) or Unions recognised by the listed entity: Category FY 2023 FY 2022 Total employees/ workers in respective category (A) No. of employees/ workers in respective category, who are part of association(s) or Union (B) % (B/A) Total employees/ workers in respective category (C) No. of employees/ workers in respective category, who are part of association(s) or Union (D) % (D/C) Total Permanent Employees 10,869.00 Male Female Total Permanent Workers Male Female 8,926.00 1,943.00 3,758.00 3,677.00 81.00 812.00 710.00 102.00 3,704.00 3,625.00 79.00 7% 8% 5% 99% 99% 98% 9,949 8,460 1,489 3,750 3,669 81 625 530 95 3,696 3,617 79 6% 6% 6% 99% 99% 98% 8. Details of training given to employees and workers: FY 2023 FY 2022 Category On Health and Safety measures On Skill upgradation Total (A) Total (D) On Health and Safety measures On Skill upgradation No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D) Employees Male Female Total Workers Male Female Total 9,744 2,145 8,563 1,684 11,889 10,247 29,517 23,941 453 391 29,970 24,332 88% 79% 86% 81% 86% 81% 9,271 1,940 11,211 8,646 156 8,802 95% 90% 94% 29% 34% 29% 9,645 1,689 11,334 8,447 1,378 9,825 29,275 19,786 361 252 29,636 20,038 88% 82% 87% 68% 70% 68% 8,503 1,441 9,944 5,161 114 5,275 88% 85% 88% 18% 32% 18% 9. Details of performance and career development reviews of employees and workers: Category Employees Male Female Total Workers Male Female Total Total (A) FY 2023 No. (B) % (B/A) Total (C) FY 2022 No. (D) % (D/C) 9,714 2,122 11,836 4,598 111 4,709 9,205 1,973 11,178 2,885 94 2,979 95% 93% 94% 63% 85% 63% 9,593 1,679 11,272 4,683 105 4,788 9,593 1,679 11,272 3,574 90 3,664 100% 100% 100% 76% 86% 77% 10. Health and safety management system: a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/No). If yes, the coverage of such system? Yes, Vedanta has implemented a robust health and safety management system across their operations, including subsidiaries, joint ventures, and acquisitions. It is guided by Vedanta Sustainability Framework (VSF) and is implemented as per the Vedanta Safety Standards (VSS) and other relevant standards and guidance documents. We have 17 safety performance standards and 20 health and safety technical and management standards in place which are aligned with ICMM guidelines, IFC as well as other applicable international systems of health and safety. Inaddition,alloperationalfacilitiesandsitesarecertifiedwithISO45001,OHSAS18001. Rolling out of VSF continues with the introduction of safety performance standards, formal safety risk assessment, industrial hygiene baseline assessment and safety leadership coaching. 307 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity? Vedanta’s Enterprise Risk Management Framework sets a threshold to classify the risks based on the severity and likelihood ofoccurrenceoftheidentifiedrisks.Therisksareidentified,monitoredandreportedbytheBU-wiseriskmanagement teamtothegroupriskofficeronaregularbasis. Vedanta follows a systematic approach to manage health & safety risks as part of their Occupational Health & Safety ManagementSystem.HazardIdentificationandRiskAssessment(HIRA)processalongwithJobSafetyAnalysis(JSA)is regularlyconductedforidentificationofrisksanddevelopmentofmitigationplans.Thesemitigationplansareperiodically updated to ensure safety at workplace. In addition, to improve safety at workplace, in FY 2023, Vedanta initiated the implementation of Critical Risk Management Framework.Underthisinitiative,13criticalriskshavebeenidentifiedacrossthebusinessbasedonhistoricalsafety incidents and learnings from fatal accidents. Detailed mitigation plans have been developed to minimise or eliminate each of these 13 risks across the Company. This programme is led by the business CEOs from across the Group of companies. At Vedanta, all fatalities and high potential incidents undergo detailed investigation using the Incident Cause Analysis Method (ICAM) under the oversight of the Group CEO. A corrective action and preventive action (CAPA) plan is then developedbasedonthefindingsoftheinvestigation.TheESGBoardreviewsthefindings.Thelearningsareimplemented across the Group to avoid repeat incidents and corrective actions are driven by site leadership of each location. c. Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks. (Yes/No) Yes. All sites have incident and hazard reporting procedures laid down to assist the workforce to highlight unsafe working conditions and remove themselves from such situations. A responsibility matrix is in place with site leadership driving the closure of such unsafe observations and risks. An incident shall be reported to the relevant business or site personnel on the same workday on which it occurs. Vedanta has implemented Enablon that facilitates the reporting, analysis, and tracking of critical tasks related to safety and other sustainability issues. This digital platform has streamlined the reporting of incidents, strengthened data-based analytics and decision-making processes, and improved the tracking and implementation of corrective action plans. The top management at every Vedanta BU regularly reviews (at least once a year) and documents the incident and investigation data. Vedanta has laid out detailed procedure for incident reporting and investigation for each category of safetyandhealthincidentsasdefinedinitsManagementStandardonIncidentReporting,ClassificationandInvestigation (https://www.vedantalimited.com/uploads/esg/esg-sustainability-framework/Incident-Reporting-Classification-and- Investigation.pdf). d. Do the employees/workers of the entity have access to non-occupational medical and healthcare services? (Yes/No) Yes. All employees of the Company are covered under the company’s medical and healthcare services. Additionally, the Companyofferslifeinsuranceandaccidentcoveragepoliciestoprovidefinancialprotectionandsupportinunforeseen circumstances. To promote a healthy workforce, Vedanta conducts regular periodic health check-ups for employees. These check- ups help identify any potential health issues early on, enabling timely intervention and appropriate medical care. Moreover, the Company organises awareness sessions to educate employees about maintaining good health and adopting healthy habits. Recognisingthesignificanceofmentalhealth,Vedantaplacesgreatemphasisonfosteringasupportiveandbalanced work environment. In line with this commitment, we have set a goal for FY 2025 to implement a mental health program for all employees. This program will focus on raising awareness about mental health, providing resources for employees to address mental well-being, and promoting a healthy work-life balance. 308 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 11. Details of safety-related incidents, in the following format: Safety Incident/Number Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours worked) Total recordable work-related injuries (Nos.) No. of fatalities High consequence work-related injury or ill-health (excluding fatalities) Category Employees Workers Employees Workers Employees Workers Employees Workers FY 2023 FY 2022 0.44 0.54 30 271 1 12 NA NA 0.55 0.59 37 279 0 12 NA NA 12. Describe the measures taken by the entity to ensure a safe and healthy workplace. Vedanta’s safety culture is guided by a robust health and safety framework encompassing all activities across the Company. VedantaSustainabilityFramework(VSF)putssignificantemphasisonSafety&OccupationalHealth.TheCompanyhas identifiedthefollowingmeasurestoimprovetheirsafetyperformanceandpreventfatalinjuriesinthefuture: i. ii. iii. iv. Implementation of Critical Risk Management (CRM): Ascientificapproachisimplementedtoanalysingrootcauses of fatalities, learning from them, and implementing actions on the ground. Currently, focus is on three areas of risk at the work site: vehicle-pedestrian segregation, man-machine interaction, and work at height. Improving safety infrastructure: Vedanta recognises the importance of providing a safe work environment to employees and have therefore prioritised improving safety infrastructure. The Company is installing walking pathways withguiderails,roadswithmarkersandtrafficsignals,andseparateroadsforashdumpers.Thefocusisonensuring that there are no fatal injuries due to lack of safe infrastructure in place. Provision of PPE:VedantaensuresthatthePPEprovidedistailoredtothespecificrisksfacedbyemployeesand contractors. Further it is ensured that PPE is readily available to all employees and contractors who require it. Employee and business partner training: Vedanta understands the importance of ensuring that all employees and business partners work safely. To that end, on-site trainings, virtual webinars, and group CEO sessions are organised to reinforce the importance of working safely and stopping work, if any unsafe situation exists on the ground. The goal is to instil a culture of safety for both employees and business partners. Other procedures in place to ensure a safe and healthy workplace include Observation Management, Process Hazard Analysis, Contractor Safety Management, Audit and Inspection Management, Management of Change, Data Management, and Risk Management. AllofVedanta’soperationalfacilitiesarecertifiedwithISO45001andaligntoICMMguidelinesandotherapplicable international occupational health and safety management systems. 13. Number of Complaints on the following made by employees and workers: FY 2023 Pending resolution at the end of year 0 0 Filed during the year 0 0 Remarks Filed during the year FY 2022 Pending resolution at the end of year Remarks 0 0 0 0 Working Conditions Health & Safety 14. Assessments for the year: Health and Safety Practices % Of your plants and offices that were assessed (by entity or statutory authorities or third parties) 100% (VSAP and AO audits) AllsitesareISO45001:2018/OHSAS18001certifiedandareauditedbythethirdpartyonceinthreeyears. In addition, HSE is an important part of Vedanta Sustainability Assurance Programme Module assessment, and all units are annually audited by third party under VSAP. Working Conditions 100% (VSAP and AO audits) Labour Practices, including working conditions is an important part of Vedanta Sustainability Assurance Programme Module assessment, and all units are annually audited by a third party under VSAP. 309 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks/concerns arising from assessments of health & safety practices and working conditions. While safety is a top priority for the Company, Vedanta is deeply saddened to report that there were 13 fatalities in FY 2023. Thisisamatterofsignificantconcern,andtheCompanyisfullycommittedtoimprovingsafetyperformanceandensuring a safer workplace for employees. To address this issue, Vedanta has implemented a focussed approach to reduce fatalities and enhance overall workplace safety. The details of the corrective actions being undertaken as below: • • Investigation of incidents: Every incident is thoroughly investigated by the leadership team, and for fatalities, a senior leadershipteamnominatedbytheGroupExCoconductstheinvestigation.Thefindingsfromtheseinvestigations arefinalised,andCorrectiveandPreventiveActions(CAPA)aresharedacrossallVedantasitestoensureconsistent implementation. The analysis of the fatal injuries revealed that man-machine interaction, vehicle driving, and structural stability were the primary causes of fatalities this year. The Company recognises the critical nature of theseareasandhaveimplementedmeasurestoenhancesafetyinthesespecificaspects. Implementation of Critical Risk Management (CRM): To prevent future fatal incidents, Vedanta has conducted a comprehensive analysis of all fatal incidents that have occurred over the past decade. Based on this analysis, the keycontributorstotheseincidentshavebeenidentifiedandatargetedlistofimprovementmeasureshavebeen developed. This approach, known as Critical Risk Management (CRM), has been rolled out at Vedanta’s sites and is currently being implemented. By implementing these corrective actions, Vedanta aims to prevent future fatalities and improve overall safety across the Company. 3.4 PRINCIPLE 4 Businesses should respect the interests of and be responsive to all its stakeholders UN SDG mapped: Essential Indicators 1. Describe the processes for identifying key stakeholder groups of the entity. Vedanta’s stakeholders are those individuals or organisations who have an interest in, and/or whose actions impact the Company’sabilitytoexecutetheirstrategy.TheCompanyconsidersstakeholderidentificationasanongoingprocessto identify and understand who might be directly or indirectly affected or interested in Vedanta operations, either positively or negatively as well as who can contribute to or hinder their success. Vedanta’s facilities are guided by Stakeholder Engagement Standard (Stakeholder-Engagement.pdf (www.vedantalimited.com)) as part of the Vedanta Sustainability Framework and is in line with IFC, UNGC and other global standards. Vedanta recognises the importance of proactive stakeholder engagement and analysis in effectively managing social risks and responsibilities, as well as building positive relationships and trust with stakeholders. To achieve this, the Company undertakesathoroughprocessofstakeholderidentificationandanalysisinconsultationwithmultiplefunctionsand businessunitsacrossVedanta.Thestakeholderidentificationprocessinvolvesconsideringtheinterestsandinfluence of various stakeholders on our business. This enables Vedanta to prioritise engagement efforts and allocate resources accordingly.MoreinformationaboutVedanta’sstakeholderidentificationandanalysisprocesscanbefoundonPage6 oftheStakeholderEngagementStandard.Currently,sixkeyinternalandexternalstakeholdergroupshavebeenidentified: the Local Community, Employees, Shareholders, Investors & Lenders, Civil Society, Industry (Suppliers, Customers, Peers, Media), and Governments. Vedanta periodically engages with different stakeholder groups and actively responds to their concerns and issues. GrievanceredressalisacriticalpartoftheCompany’sstakeholderengagementprocess,andVedantahasadefined grievance redressal process to identify, record, acknowledge, assess and assign, investigate, resolve, and close all grievances. The grievance redressal mechanism in place help map Vedanta’s impact on the stakeholders and take steps to address them. The success of the Company’s stakeholder engagement initiatives lies in continued emphasis on providing information that is accurate and relevant to each group. The Company does this in a transparent and structured manner and in addressing their concerns through effective processes and mechanisms. 310 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group. Stakeholder Group Whether identified as Vulnerable & Marginalised Group (Yes/No) Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website, Other) Local Community Mixed • • • Community group meetings Village council meetings, Community needs/social impact assessments Public hearings • • Grievance mechanisms • • Cultural events Engaging with communities via various community initiatives of Vedanta Foundation Frequency of engagement (Annually/Half Yearly/Quarterly/ Others – please specify) Monthly Purpose and scope of engagement including key topics and concerns raised during such engagement • The Social Performance Steering Committees (SPSCs) takes a cross-functional approach to community engagement through community group meetings, village council meetings • Developing and undertaking need-based • community projects Increasing community outreach via public hearings, grievance mechanisms and cultural events Improving grievance mechanism for community • • Developing community needs/social impact assessments to undertake need-based community projects FY 2023 engagement initiatives were: • Completed baseline, need, impact and SWOT assessments in all BUs Community grievance process followed at all operations • Employees No Monthly • • • • • • • Chairman’s workshops Chairman’s/CEO’s town hall meetings Feedback sessions Performance management systems Various meetings at plant level V-Connect mentor program Event management committee and welfare committee • Women’s club The Company undertakes employee performance management and employee feedback as primary mode of engaging with the employees. In addition, other engagement objectives include: • Improving training on Health & Safety and other pertinent material issues for the organisation Providing increased opportunities for career growth through internal talent recognition Increasing the gender diversity of the workforce • • FY 2023 engagement initiatives were: • • Identificationoftoptalentsandfutureleaders through workshops Recruitment of global talent through hiring from top global universities Strengthening gender and regional diversity with V Lead and V-Engage respectively • Dedicated hiring drive for women • No Shareholders, Investors, & Lenders • Regular updates via: – – Investor meetings Site visits (put on hold in the last year due to COVID) Quarterly and on case to case basis • • Consistent disclosure on economic, social, and environmental performance Spread awareness of the development in business with respect to business and ESG initiatives – AGM and conference – Quarterly result calls • Dedicated contact channel: Vedantaltd.ir@vedanta.co.in and esg@vedanta.co.in Civil Society No • Partnerships with, and membership of international organisations • Working relationships with • organisationsonspecific projects Engagement with international, national, and local NGOs • Conferences and workshops • Dedicated contact channel – esg@vedanta.co.in FY 2023 engagement initiatives were: • Sustainability assurance audits conducted through Vedanta Sustainability Assurance Programme (VSAP) Bi-weeklyinvestorbriefingsandpro-active engagement with the investment community on ESG topics • Semi-annually The Company has implemented multi-stakeholder initiatives and partnerships with international organisations to align with the expectations of the global sustainability agenda. Any key concerns or trends from engagements with international, national, and local NGOs are reported to the relevant community of practice. Conferences and workshops are conducted as needed. FY 2023 engagement initiatives include: • Membership of international organisations including the United Nations Global Compact (UNGC), The Energy and Resources Institute (TERI), Confederation of Indian Industry (CII), The World Business Council for Sustainable Development (WBCSD), and Indian Biodiversity Business Initiative (IBBI) Alignment to Sustainable Development Goals Compliance to the Modern Slavery Act • • 311 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT Stakeholder Group Whether identified as Vulnerable & Marginalised Group (Yes/No) Channels of communication (Email, SMS, Newspaper, Pamphlets, Advertisement, Community Meetings, Notice Board, Website, Other) Frequency of engagement (Annually/Half Yearly/Quarterly/ Others – please specify) Quarterly Customer satisfaction surveys Vendor score cards In-person visits to customers, suppliers, and vendor meetings (put on hold during COVID) No Industry (Suppliers, Customers, Peers, Media) Governments No • • • • • Participation in government consultation programs Engagement with national, state, and regional government bodies at business and operational level Continuous basis • Meet all the regulatory requirements laid down Purpose and scope of engagement including key topics and concerns raised during such engagement • • Consistent implementation of the Code of Business Conduct and Ethics Ensuring contractual integrity and data privacy Modes of engagement include: • Hotline service and email ID to receive whistle- • blower complaints Vendor meets to understand vendors and supplier’s issues These engagements with government bodies are initiated with the objective of: • • Ensuring compliance with laws Contributing towards the economic development of the nation Engagement initiatives are in the form of participation in government consultation programmes. The Company engages with national, state, and regional government bodies at the business and operational levels both directly and through industrial associations. FY 2023 engagement initiatives include: • Partnership with UP government to eradicate state’s malnutrition by 2024 Partnership with Rajasthan government to modernise 25,000 Anganwadis • 3.5 PRINCIPLE 5 Businesses should respect and promote human rights. UN SDG mapped: Essential Indicators 1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format: Category Total (A) FY 2023 No. of employees/ workers covered (B) % (B/A) Total (C) FY 2022 No. of employees/ workers covered (D) Employees Permanent Other permanent Total Employees Workers Permanent Other permanent Total Workers 10,892 605 11,497 2,615 17,313 19,928 10,133 594 10,727 753 6,038 6,791 93% 98% 93% 29% 35% 34% 10,491 502 10,993 3,415 16,052 19,467 9,695 496 10,191 1,326 4,671 5,997 % (D/C) 92% 99% 93% 39% 29% 31% 312 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 2. Details of minimum wages paid to employees and workers, in the following format: FY 2023 FY 2022 Category Total (A) Equal to minimum wage More than Minimum Wage Total (D) Equal to minimum wage More than minimum wage No.(B) % (B/A) No.C % (C/A) No.E % (E/D) No.(F) % (F/D) Employees Permanent Male Female Other Permanent than Male Female Workers Permanent Male Female Other Permanent than 7,077 5,710 1,367 262 175 85 4,423 4,339 84 0 0 0 0 0 0 19 19 0 0% 0% 0% 0% 0% 0% 0% 0% 0% 7,077 5,710 1,367 262 175 85 4,404 4,320 84 100% 100% 100% 100% 100% 100% 100% 100% 100% 6,583 5,509 1,074 232 192 40 4,597 4,513 84 0 0 0 0 0 0 24 24 4 0% 0% 0% 0% 0% 0% 1% 1% 5% 6,583 5,509 1,074 232 192 40 4,573 4,489 84 36,167 4,536 13% 31,631 87% 34,514 5,539 16% 30,523 Male 35,467 4,580 Female 700 31 13% 4% 30,887 669 87% 96% 34,801 487 5,421 118 16% 24% 30,062 461 3. Details of remuneration/salary/wages, in the following format: 100% 100% 100% 100% 100% 100% 99% 99% 100% 88% 86% 95% Board of Directors (BoD) Key Managerial Personnel Employees other than BoD and KMP Workers Male Female Number 6 3 6,382 Median remuneration/ salary/wages of respective category 1,00,00,000* 8,84,66,358.39* 904,348** Number 2 1 759 Median remuneration/ salary/wages of respective category 98,00,000* 1,30,57,665* 11,46,853** NA Note *BoD, Key Managerial Personnel and Employee Data has been shared for VEDL Standalone **Employee data has been shared for the employees active throughout the full financial year FY 2023 in VEDL 4. Do you have a focal point (Individual/Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No) Yes. At Vedanta, the Board ESG Committee is responsible for monitoring and guiding the organisation's approach to addressing and managing human rights issues within its operations. The primary role of this Board-level Committee overseeing Human Rights is to provide oversight and strategic guidance on human rights-related risks, policies, and practices.InadditiontotheBoardESGCommittee,severalfunctionswithintheCompanyhavespecificresponsibilities for preventing and addressing human rights violations. These functions include the Human Resources (HR) department, Commercial department, Security team, and Industrial Relations department. Each of these departments plays a crucial role in upholding human rights standards and ensuring that appropriate measures are in place to safeguard the well-being and rights of individuals affected by the Company's activities. To oversee and drive the implementation of human rights practices, we have established Social Performance Steering committee (SPSC) at all our sites. These committees play a crucial role in promoting local stakeholder engagement, managing grievance mechanisms, and addressing any human rights impacts associated with the Company’s business operations. They work towards ensuring that the Company’s activities are conducted in a manner that respects and upholds human rights principles. The SPSC consists of representation from at least the following functions: External Affairs/Public Relations, Operations, Security, CSR, Human Resources, HSE, Finance, and Corporate Communications. TheSPMissupportedbyaCommunityLiaisonOfficer(CLO),whoseprimaryresponsibilityistohaveregularinteractions with the local communities. Each site has a Social Performance Manager (SPM), whose role is to drive the implementation of social performance principles at the location. The SPM is the convening authority for the Social Performance Steering Committee (SPSC). 313 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT To provide an avenue for employees and external stakeholders to raise concerns or grievances related to human rights issues, Vedanta has implemented a comprehensive grievance mechanism. This mechanism is designed to receive and facilitate the resolution of concerns raised by employees and to address complaints, disputes, or grievances brought forward by external stakeholders. It serves as an important channel for individuals to seek redress and ensures that their concerns are handled in a fair and timely manner. By involving various functions and establishing robust mechanisms, Vedanta strives to create a work environment that respects and safeguards human rights. The Company is committed to addressing any human rights issues that may arise and continuously improving practices to uphold the well-being and dignity of all individuals impacted by our operations. 5. Describe the internal mechanisms in place to redress grievances related to human rights issues. All locations also have formal grievance mechanism cells where external stakeholders can register their grievances. Grievance system at Vedanta sites is guided by Technical Standard and Guidance note on Grievance Mechanism which are part of Vedanta Sustainability Framework (VSF). All of Vedanta’s sites have a Social Performance Steering Committee (SPSC), oversee the resolution of all grievances relatedtohumanrightsinatimelymanner.TheCommunityLiaisonOfficer(CLO)mustrecord,assessandassignthe grievance to the concerned department for investigation and resolution. Human Rights related grievances must be directly assigned to the location head for investigation and closure. Grievancesareattemptedtoberesolvedwithin30daysfromidentification.Ifnotpossible,theCLOupdatestheSocial Performance Manager (SPM) and the grievance holder with bimonthly progress. Grievance once rejected or resolved is considered closed after the CLO has shared a closure report and grievance holder’s feedback is obtained on Grievance Mechanism process experience and outcome. TheSPMmonitorsquarterlyperformanceoftheGMagainsttheprincipleoutcome&expectationsandsharefindingswith the location head, SPSC and Corporate HSES. 6. Number of Complaints on the following made by employees and workers*: FY 2023 FY 2022 Filed during the year (2022-23) Pending resolution at the end of year Remarks Filed during the year (2021-22) Pending resolution at the end of year Remarks Sexual Harassment Discrimination at Workplace Child Labour Forced Labour/Involuntary Labour Wages Other Human Rights related issues *HZL and Fujairah Gold are not included 17 5 0 0 8 14 0 0 0 0 3 0 1 0 0 23 55 0 0 0 14 55 7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases. Vedanta has a strict adherence to policy on discrimination and harassment where all information/names of employees disclosedininvestigationsisstrictlyconfidentialtopreventanydisadvantagetothecomplainantorthewitnesses.In line with Vedanta's Sexual Harassment Policy, the Company takes necessary steps to safeguard individuals who raise complaints against victimisation or retaliation. Vedanta recognises the importance of providing a safe environment for employees to come forward and address their concerns without fear of negative consequences. To effectively address both sexual and non-sexual harassment, Vedanta has established an Internal Complaints Committee (ICC). (https://www.vedantalimited.com/CorporateGovernance/policy_on_prevention_and_prohibition_of_sexual_harassment_ final.pdf). The committee comprises a diverse group of internal and external members with relevant backgrounds. While well-definedcriteriaisalreadyinplaceforhandlingsexualharassmentcases,theCompanyhasrecentlyexpandedthe committee'sscopetoincludetheredressalofnon-sexualharassmentcasesaswell.Inthefiscalyear2021-22,this additional provision was implemented. To ensure awareness and sensitivity towards these issues, Vedanta will provide sensitisation and training programs to all employees. These initiatives will be coordinated with the Human Resources department and other relevant functions to ensure comprehensive coverage across the Company. 314 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 8. Do human rights requirements form part of your business agreements and contracts? (Yes/No) Yes. Human rights requirements form part of Vedanta’s business agreements and contracts. The Company has been complying with the Modern Slavery Act (UK) or MSA since 2016. With regular and systematic updates and audit mechanisms, Vedanta has been making their systems robust to ensure that vendors and supply chain are entirely free of slave labour. Vedanta also seeks MSA self-declaration from each of their vendors. Key initiatives: 1. MSA clause included in vendor contracts, SCOC and recruitment procedures 2. MSA awareness and training programmes for vendors 3. MSA compliance for onboarding new vendors 4. Supply chain managers regularly trained on Vedanta Code, SCOC and Human Rights Policy 9. Assessments for the year: Child labour Forced/involuntary labour Sexual harassment Discrimination at workplace Wages Others – please specify % Of your plants and offices that were assessed (by entity or statutory authorities or third parties) 100% Human Rights self-assessment was conducted across all BUs during the year. 10. Provide details of any corrective actions taken or underway to address significant risks/concerns arising from the assessments at Question 9 above. The Company has established an Internal Complaints Committee (ICC) to handle sexual and non-sexual harassment (bullying, discrimination). The ICC consists of both internal and external members from diverse backgrounds, ensuring a fairandunbiasedapproachtohandlingcomplaints.Thecommitteefollowspredefinedcriteriaandguidelinesspecifically tailored for addressing incidents of sexual harassment. (https://www.vedantalimited.com/CorporateGovernance/policy_ on_prevention_and_prohibition_of_sexual_harassment_final.pdf). 3.6 PRINCIPLE 6 Businesses should respect and make efforts to protect and restore the environment. UN SDG mapped: Essential Indicators 1. Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format: Parameter Total electricity consumption (A) Total fuel consumption (B) Energy consumption through other sources (C) Total energy consumption (A+B+C) Energy intensity per rupee of turnover (Total energy consumption/turnover in rupees) Energy intensity (optional) – the relevant metric may be selected by the entity (Total energy consumption/tonne of metal) * Energy intensity per rupee of turnover- (GJ/` crore) FY 2023 FY 2022 5,86,12,317 3,32,11,181 50,03,09,642 53,07,64,592 - - 55,89,21,959 56,39,75,774 3,843 - 4,298 - 315 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Yes, an independent assurance has been carried out by Ernst & Young Associates LLP. Following are the key indicators assured by independent Agency: 302-1 Energy consumption within the organisation 302-3 Energy intensity 302-4 Reduction of energy consumption 2. Does the entity have any sites/facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any. Vedanta’s Aluminium Business i.e., Balco and Vedanta Ltd Jharsuguda as well as their Independent Power Plants (IPPs) i.e., TSPL, Vedanta Ltd Jharsuguda IPP and Balco IPP are designated consumers. These sites have successfully achieved their targets under the Perform, Achieve, and Trade (PAT) scheme. Below are the accomplishments for each site: • Balco smelter (including CPP): Achieved the target in PAT Cycle 2. Also, Bharat Aluminium Company Ltd has been recognised as a Top Performer Designated Consumer for the Aluminium Sector in PAT Cycle-II under the National MissionforEnhancedEnergyEfficiency(NMEEE). • TSPL: Achieved the target in PAT Cycle 3. • VAL J smelter: Achieved the target in PAT Cycle 2. • VAL J IPP: Achieved the target in PAT Cycle 3. 3. Provide details of the following disclosures related to water, in the following format: Parameter Water withdrawal by source (in kilolitres) (i) Surface water (ii) Groundwater (iii) Third party water (iv) Seawater/desalinated water FY 2023 FY 2022 14,53,05,251 15,21,15,631 1,59,29,325 36,02,979 - 1,74,32,334 2,24,001 - (v) Others: Wastewater from other Organisations, Rain Water and Produced Water 4,57,37,178 9,88,85,638 Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) Total volume of water consumption (in kilolitres) Water intensity per rupee of turnover (Water consumed/turnover) Water intensity (optional) – the relevant metric may be selected by the entity 21,05,74,733 26,86,57,604 26,60,01,190 28,02,25,972 1,815 - 2,135 - Water intensity per rupee of turnover- (Kiloliters/` crore) Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Yes, an independent assurance has been carried out by Ernst & Young Associates LLP. Following are the key indicators assured by independent Agency: • 303-3 Water Withdrawal • 303-5 Water Consumption 4. Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and implementation. Vedanta has a longstanding commitment to achieving zero waste and zero discharge, recognising the responsibility to minimise any adverse environmental impacts. HZL’s (of Vedanta Limited) sites are Zero Liquid Discharge (ZLD) plants with no liquid effluent into surface water, groundwater, or third parties, eliminating the environmental pollution. To ensure this process, real time monitoring systems along with flow meters and PTZ camera are installed at the plant outlets for all smelters and captive power plants. Vedanta tracks the process water which is recycled after undergoing treatment at onsite ETP and a two stage RO system. The 316 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS treated effluent conforms to the prescribed standards and is recycled in the process. Multiple Effective Evaporator (MEE) and Mechanical Vapor Recompression (MVR) have been provided to ensure ZLD. To provide an overview of the facilities available across our business units, here is a summary: Business Unit HZL VAL-JSG VAL-Lanjigarh Zinc Int. FACOR Sterlite Cu ESL IOK BALCO TSPL VAB CAIRN ETP/STP Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Facilities Available (Yes/No) RO Yes Yes No No Yes No No No Yes Yes Yes Yes No water discharge Yes Yes Yes Yes No Yes Yes Yes Yes Yes No Yes 5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format: Parameter NOx SOx Particulate matter (PM) Persistent organic pollutants (POP) Volatile organic compounds (VOC) Hazardous air pollutants (HAP) Other – please specify Unit MT MT MT - - - - FY 2023 89,856 5,01,201 18,275 NA NA NA FY 2022 84,657 3,86,621 11,898 NA NA NA Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Yes, an independent assurance has been carried out by Ernst & Young Associates LLP. Following are the key indicators assured by independent Agency: 305-7Nitrogenoxides(NOx),sulphuroxides(SOx),andothersignificantairemissions 6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format: Parameter Unit FY 2023 FY 2022 Total Scope 1 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) Total Scope 2 emissions (Break-up of the GHG into CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, if available) Total Scope 1 and Scope 2 emissions per rupee of turnover Metric tonnes of CO2 equivalent Metric tonnes of CO2 equivalent tCO2e/` million 5,71,47,242 5,94,86,747 85,71,214 33,42,745 451 478 Total Scope 1 and Scope 2 emission intensity (optional)– the relevant metric may be selected by the entity. Total Scope 1 and Scope 2 Emissions per rupee of turnover- (MT/` crore) Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Yes, an independent assurance has been carried out by Ernst & Young Associates LLP. Following are the key indicators assured by independent Agency: 305-1 Direct (Scope 1) GHG Emissions 305-2 Energy indirect (Scope 2) GHG Emissions 317 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 305-3 Other indirect (Scope 3) GHG Emissions 305-4 GHG Emissions intensity 305-5 Reduction of GHG Emissions 7. Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details. Yes. Vedanta is fully committed to becoming a "Net Zero Carbon" organisation by 2050, or potentially even sooner. To achievethisgoal,theCompanyhasidentifiedfourkeystrategies,orlevers,toreduceGHGemissionsandmeettheir2030 emission targets. These levers are increasing renewable energy, switching to low-carbon or zero-carbon fuels, improving energyandprocessefficiency,andpurchasingcarbonoffsetsforresidualemissions. Lever 1: Increasing Renewable Energy Vedantaismakingsignificantprogressinincreasingtheirrenewableenergycapacity.BytheendofFY2023,theCompany has signed power delivery agreements (PDAs) for 788 MW of renewable energy, which will result in an estimated avoidance of 6.6 million tonnes of CO2e per year. This represents 32% of our target to use 2,500 MW of RE RTC (eq.) power by 2030. To coordinate these efforts, the Company has established an RE Steering Committee. Lever 2: Switch to low-carbon/zero-carbon fuels Lever 2 focusses on transitioning from coal to biomass and other low-carbon or zero-carbon fuels. Vedanta aims to substitute 5% of coal used in thermal power plants with biomass, a net zero-carbon fuel. In FY 2023, the Company achieved a four-fold increase in biomass usage compared to FY 2022, reaching approximately 78,000 MT. VedantahasalsomadepositiveprogressonreducingemissionsfromLMVandminingfleet,throughelectrificationand othermeasures.HZLandESLhaveinitiatedtheuseofelectricvehicles.HZLhaslaunchedthefirstbattery-poweredelectric underground vehicle and LNG-powered 55-tonne heavy-duty trucks. A large electric forklift fleet of 27 is operating at our Jharsuguda location. Biofuel trials have started at BALCO and VAL-Jharsuguda and planning is underway to start trials at Sterlite Copper and Sesa Value-Added Business (VAB). Lever 3: Improving the energy and process efficiency of our operations. VedantahasundertakenseveralprojectstoenhanceefficiencyintheAluminiumsector.Someoftheseprojectsinclude: 100% Graphitisation with copper inserted collected bar (potential 1.1 million tCO2e/year) Vedanta pot controller implementation (potential 0.2 million tCO2e) Commissioning of TRT and BPRT at ESL (potential 82,000 tCO2e/year) NaturalgasusageatLanjigarhAluminaRefinery(potential1,20,000tCO2e/year) Whiletheseareprojectsunderprogress,therearesomemajorenergyefficiencyprojectswhicharealreadycompletedat Vedanta’s sites: R&M of 1 unit of 600 MW at VAL Jharsuguda (3,70,000 tCO2e/year)) VAL Lanjigarh Evaporation - 1 Calendria 1 & 2 tubes replacement (18,000 tCO2e/year) VAL Lanjigarh Boiler 2 junior APH replacement (16,000 tCO2e/year) ESL Fuel crushing index improvement (31,000 tCO2e/year) ESL LD gas recovery project completion (18,000 tCO2e/year) Lever 4: Purchasing carbon offsets for residual emissions. VedantahasyettoinitiatespecificworkonLever4,whichinvolvespurchasingcarbonoffsetsforresidualemissions. The Company will consider options for addressing hard-to-abate GHG emission at the end of their target period. Vedanta’scollectiveeffortsoverthepasttwoyearshaveresultedinsignificantemissionsreductions,with4.17million tonnes of CO2e avoided based on the FY 2021 baseline and 14.62 million tonnes of CO2e avoided based on the initial FY 2012 baseline. For more detailed information, please refer to Vedanta’s Sustainability Report for FY 2022-23. 318 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 8. Provide details related to waste management by the entity, in the following format: Parameter Total Waste generated (in metric tonnes) Plastic waste (A) E-waste (B) Bio-medical waste (C) Construction and demolition waste (D) Battery waste (E) Radioactive waste (F) FY 2023 FY 2022 372 141 1,297 NA 252 - 85 121 1,223 NA 130 - Other Hazardous waste. Please specify, if any. (G) (other than above mentioned HW) 5,31,595 5,16,245 Other Non-hazardous waste generated (H). Please specify, if any. (HVLT) (Excluding Plastic waste, construction waste) (Break-up by composition i.e., by materials relevant to the sector) 1,80,98,325 1,90,10,000 Total (A + B + C + D + E + F + G + H) 1,86,31,982 1,95,27,804 For each category of waste generated, total waste recovered through recycling, re-using or other recovery operations (in metric tonnes) Category of waste (i) Recycled (ii) Re-used (iii) Other recovery operations Total For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes) Category of waste (i) Incineration (ii) Landfilling (iii) Other disposal operations Total 3,02,20,013 1,94,65,805 - - - - 3,02,20,013 1,94,65,805 - 282 - 293 15,786 12,465 2,10,96,024 1,70,43,316 2,11,12,092 1,70,56,074 * Recycle waste includes - Recycle, reuse and Other recovery operations Note: Indicate if any independent assessment/evaluation/assurance has been carried out by an external agency? (Y/N) If yes, name of the external agency. Yes, an independent assurance has been carried out by Ernst & Young Associates LLP. Following are the key indicators assured by independent Agency: 306-1Wastegenerationandsignificantwaste-relatedimpacts 306-2Managementofsignificantwaste-relatedimpacts 306-3 Waste generated 306-4 Waste diverted from disposal/recycled 306-5 Waste directed to disposal 9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your Company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes. Vedantahasimplementedarobustwastemanagementsystemdesignedtohandlewasteefficientlyandresponsibly.As part of their refreshed ESG vision, the Company is committed to becoming a "Zero Waste" organisation. To achieve this goal,specifictargetsareset: • Sustain the fly ash utilisation at 100% • Achieve zero legacy waste by 2035 • Use 100% of High-Volume Low Toxicity (HVLT) waste generated by 2025 319 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT Tofulfilthesetargets,Vedantaisdeployingadvancedtechnologiestominimisewasteandincreasemetalrecovery.The Company is also establishing long-term collaborations with potential users of our HVLT waste (which includes fly ash, bottom ash, slag, jarosite, and red mud), and partnering with academic and research institutes to explore alternative applications for these wastes. For instance, Vedanta is working with the cement industry to use these wastes as raw materials and collaborating with the National Highways Authority of India (NHAI) to incorporate them as substrates for road construction. In the case of HVLT waste such as red mud, which contains traces of Rare Earth Minerals (REE), the Company is conducting research and development projects to economically extract these minerals. Additionally, trials are underway to explore the use of this waste as an alternative to sand. Vedanta is collaborating with esteemed institutions such as CSIR, CRRI, IIT Kharagpur, IMMT, and NITI Aayog for these initiatives. For instance, during FY 2022-23, the Company completed a lab scale feasibility study with CSIR-Central Road Research Institute (CSIR-CRRI) for utilisation of red mud in highway construction. Vedanta’s waste management efforts are guided by our HSE (Health, Safety, and Environment) policy, which outlines theiroverallcommitmenttowastemanagementandotherenvironmentalaspects.Wefollow‛Theresourceuseand waste management' Technical Standard and supporting guidance notes, which are integral components of the Vedanta Sustainability Framework. These standards are aligned with the national Hazardous Waste Management Rules of 2016. Hazardous wastes, such as used/spent oil, waste refractories, spent pot lining, and residual sludge from smelters, are sent to government-authorised handlers or recyclers in accordance with regulatory requirements. 10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals/clearances are required, please specify details in the following format: S. No. Location of operations/offices Type of operations Whether the conditions of environmental approval/clearance are being complied with? (Y/N) If no, the reasons thereof and corrective action taken, if any. 1 2 3 Vedanta Lanjigarh (Lanjigarh, India) Skorpan Zinc (Rosh Pinah, Namibia) Black Mountain Mines (Gamsberg, South Africa) AluminaRefinery Yes Mining Mining Yes Yes 11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year: Name and brief details of project EIA Notification No. Date Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No) Expansion within the existing Chanderiya Lead Zinc Smelter Complex at Villages: Putholi, Ajoliya Ka Khera & Biliya, Tehsil: Gangrar & Chittorgarh, District: Chittorgarh (Rajasthan) 2EC for development and production in Hazarigaon On-shore DSF II Block in Golaghat Dist, Assam S.O. 1533 (E) - Yes Yes EIANotification2006and its amendments - Yes No Submiited to MoEF OfficeMemorandum issued from MoEF&CC vide no. IA3-22/23/2021- IA.III (E 167077) dated 20.10.2021 and IA3-22/10/2022-IA.III (E 177258) Relevant Web link https://parivesh.nic. in/newupgrade/#/ department/ ec-proposal- detail/1722660 12. Is the entity compliant with the applicable environmental law/regulations/guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment Protection Act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: Yes. Vedanta adheres to and complies with the relevant environmental laws, regulations, and guidelines in India. This includes the Water (Prevention and Control of Pollution) Act, the Air (Prevention and Control of Pollution) Act, the Environment Protection Act, and the respective rules established under these Acts. The Company ensures that operations align with these legal requirements to promote environmental stewardship and maintain regulatory compliance. 320 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 3.7 PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent UN SDG mapped: Essential Indicators 1. a. Number of affiliations with trade and industry chambers/associations: 5 b. List the top 10 trade and industry chambers/associations (determined based on the total members of such body) the entity is a member of/affiliated to. S. No. 1 2 3 4 5 Name of the trade and industry chambers/associations Confederation of Indian Industry (CII) Federation of Indian Chambers of Commerce & Industry (FICCI) The Associated Chambers of Commerce and Industry of India (ASSOCHAM) Federation of Indian Mineral Industry (FIMI) Federation of Indian Petroleum Industry (FIPI) Reach of trade and industry chambers/ associations (State/National) National National National National National 2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities. Name of authority Brief of the case Corrective action taken Not Applicable. There were 0 cases related to anti-competitive conduct by Vedanta or its associated subsidiaries, joint ventures. 3.8 PRINCIPLE 8 Businesses should promote inclusive growth and equitable development UN SDG mapped: Essential Indicators 1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year. Name and brief details of project SIA Notification No. Date of notification Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No) Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/1 Block, Karbi Anglong and Golaghat Districts, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/2 Block in Tirap District, Arunachal Pradesh NA (as per Vedanta Sustainability Framework requirement) Not Applicable External Agency Not required Not Applicable External Agency Not required Relevant Web link Not Applicable Not Applicable 321 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT Name and brief details of project SIA Notification No. Date of notification Whether conducted by independent external agency (Yes/No) Results communicated in public domain (Yes/No) Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/3 in Tinsukia District, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/4 Block, Jorhat District, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/5 Block in Jorhat, Lakhimpur and Sibsagar Districts, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/9 Block in Sibsagar District, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in AA-ONHP-2017/11 in Golaghat and Jorhat Districts, Assam Onshore Oil and Gas Exploration, Appraisal and Early Production in CB-ONHP-2018/1 Block in Mehsana & Patan Districts, Gujarat Onshore Oil and Gas Exploration, Appraisal and Early Production in CB-ONHP-2018/3 Block in Kheda & Anand Districts, Gujarat Onshore Oil and Gas Exploration, Appraisal and Early Production in CB-ONHP-2018/4 Block in Vadodara District, Gujarat Not Applicable External Agency Not required Not Applicable External Agency Not required Not Applicable External Agency Not required NA (as per Vedanta Sustainability Framework requirement) Not Applicable External Agency Not required Not Applicable External Agency Not required Not Applicable External Agency Not required Not Applicable External Agency Not required Not Applicable External Agency Not required Relevant Web link Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable 2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format: State District No. of Project Affected Families (PAFs) % of PAFs covered by R&R Odisha Kalahandi 261 100% S. No. 1 Name of Project for which R&R is ongoing Vedanta Limited Lanjigarh Amounts paid to PAFs in FY (In `) Land Payments: `40.28 crore : Already done New RR Colony Construction: `54.28 crore : Ongoing R&R Package: 31.58 CR: Disbursement is in progress. R&R Subsistence Allowances and Trainees Stipends: `7.02 crore: Ongoing Skill development training cost: `4.56 crore: Ongoing 3. Describe the mechanisms to receive and redress grievances of the community. Vedanta has established Social Performance Steering Committees (SPSCs) across all BUs to enhance various aspects of their social performance. These committees play a vital role in tracking, investigating, and resolving grievances, preventing any adverse impacts on communities, and involving them in economic activities. By adopting a cross-functional approach to community engagement, the Company breaks down the perception that community engagement is solely the responsibility of our CSR teams. The SPSCs are entrusted with driving social performance standards, including the implementation of a grievance mechanism at the site level, and addressing human rights-related issues. The grievance redressal system at Vedanta sites is guided by the Technical Standard and Guidance note on Grievance Mechanism, which are integral parts of the Vedanta Sustainability Framework (VSF). These standards align with the IFC Performance Standards and incorporate global best practices in social performance. 4. Percentage of input material (inputs to total inputs by value) sourced from suppliers: Directly sourced from MSMEs/small producers* Sourced directly from within the district and neighbouring districts* *Only for Cairn 322 FY 2023 9.81% 49.38% FY 2022 10.22% 43.28% VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 3.9 PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner. UN SDG mapped: Essential Indicators 1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback. Vedanta has established formal feedback mechanisms to gather input from customers, which are guided by their Grievance Redressal Performance Standard. Currently, the Company uses the "Vedanta Metal Bazaar" (Moglix Portal) to capture all customer grievances (https://vedantametalbazaar.moglix.com/#/login).Whenacustomerfilesacomplaintthrough theportal,ittriggersemailnotificationstotherelevantteammembers.Aftercompletingathoroughrootcauseanalysis, necessary actions are taken, and the complaint is resolved and closed. Throughout this process, customers can track the stages of complaint closure and provide their consent. Vedanta engages with customers proactively through online and offline channels, in line with the monthly customer connect calendar, to gather their voices of concern (VOC). Based on the VOC, appropriate actions are taken, communicated to customers, and feedback is recorded for future reference. Additionally, the Company conducts customer satisfaction surveys to capture VOC and ensure their expectations are met. 2. Turnover of products and/services as a percentage of turnover from all products/services that carry information about: Environmental and social parameters relevant to the product Safe and responsible usage Recycling and/or safe disposal % to total turnover This is not applicable as Vedanta supplies power, metals & minerals, oil & gas which does not require any labelling. This is not applicable as Vedanta supplies power, metals & minerals, oil & gas which does not require any labelling. This is not applicable as Vedanta supplies power, metals & minerals, oil & gas which does not require any labelling. 3. Number of consumer complaints in respect of the following: FY 2023 Received during the year Pending resolution at end of year Remarks FY 2022 Received during the year Pending resolution at end of year Remarks Data privacy Advertising Cyber-security Delivery of essential services Restrictive Trade Practices Unfair Trade Practices Other 0 - 0 - - - - 0 No Complaint received - - 0 No Complaint received - - - - - - - - 0 - 0 - - - - 0 No Complaint received - - 0 No Complaint received - - - - - - - - 4. Details of instances of product recalls on account of safety issues: Voluntary Recalls Number 0 Reasons for recall NA 323 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 5. Does the entity have a framework/policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy. Yes. Vedanta has an Information Security Policy in place that covers aspects of cyber security and risks related to data privacy (https://www.vedantalimited.com/CorporateGovernance/Information_security_Policy_V3_3.pdf). Vedanta has implemented a robust Information Security Management Framework under their Enterprise Risk Management (ERM) framework. This framework comprises policies, standard operating procedures (SOP), and technology standards for all business units. It also includes a comprehensive security assessment and audit process aimed at preventing cyber-attacks and enhancing overall information security across Vedanta's technology landscape (https://www.vedantalimited.com/ uploads/corporate-governance/policies_practices/IT%20Disclosure%20Cybersecurity%202022.pdf). Vedanta’scybersecurityframeworkfollowsaprincipleandobjective-basedapproachtosafeguardtheconfidentiality, integrity, and availability of all technology and data assets, especially those critical to business and operational resilience, stability, and regulatory compliance. The framework focusses on identifying risks and implementing critical controls for our assets. Moreover, the Company adheres to various standards and guidelines governing information technology and cybersecurity practices, including those related to information security management, personal data privacy, disaster recovery, business continuity management, and risk management. The Company’s Information Security Framework takes following aspects as an input: 1. Globally recognised Information Security Management Frameworks and Standards 2. Applicable Regulatory Requirements 3. RiskAssessmentandRiskControlMatrixdefinedunderRiskManagementProcess 4. Information Security Objectives aligned to Business Objectives 5. Prevailing Best Practices 6. Security Threat Intelligence Cybersecurity is covered under the revised Risk Management Policy of the Company, which was updated in 2019. Vedanta also conducts Vulnerability Assessment and Penetration Testing (VAPT) reviews with the assistance of cybersecurity experts. At the Group level, the Company has a well-structured cybersecurity framework, and each BU has a Chief InformationOfficer(CIO)experiencedininformation/cybersecurity.ITexpertscarryoutannualcybersecurityreviewsto ensure the effectiveness of their security measures. 6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty/action taken by regulatory authorities on safety of products/services. Not applicable 324 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS FINANCIAL STATEMENTS Standalone Independent Auditors’ Report Balance Sheet Statement of Profit and Loss Statement of Cash Flows Statement of Changes in Equity Notes to the Financial Statements Company overview Basis of preparation and basis of measurementoffinancialstatements Significantaccountingpolicies Application of new and amended standards 1 2 3(a) 3(b) Significantaccountingestimatesandjudgements 3(c) Business combinations/ Acquisitions/ Restructuring 3(d) Segement Information Property, Plant and Equipment, Intangible assest, Capital work-in-progress and Exploration intangible assets under development Financial Assets - Investments Financial Assets - Trade Receivables Financial Assets - Loans Financial Assets - Others Other assets Inventories Cash and cash equivalents Other bank balances Share Capital Other equity Capital Management Financial Liabilities - Borrowings Financial Liabilities - Trade payables Operational Buyers'/ Suppliers' Credit 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Note Pg.No. Note Pg.No. 326 340 341 342 344 346 346 346 347 363 364 368 369 373 378 382 383 383 384 385 385 385 386 388 388 389 396 396 Financial Liabilities - Others Lease liabilities Financial Instruments Other liabilities Provisions Employeebenefitplans Employeebenefitexpense Share based payments Revenue from operations Other operating income Other income Changes in Inventories of Finished Goods and Work-in- Progress Finance cost Other expenses Exceptional items Tax expense Earnings per equity share (EPS) Dividends Commitments, contingencies and guarantees Related Party Disclosures Subsequent events 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Corporate Social Responsibility (CSR) MSME Disclosure 41(a) 41(b) 396 397 397 410 411 412 416 417 420 420 421 421 421 422 423 426 428 428 428 431 437 437 438 Details of Loans given, Investments made and guarantee given covered under regulation 34(3) and 53(f) of SEBI LODR, 2015 and u/s 186 (4) of the Companies Act, 2013 Other statutory information Financial ratios Oil & gas reserves and resources Other matters 41(c) 439 41(d)-41(i) 439 42 43 44 440 441 442 325 STANDALONE INDEPENDENT AUDITOR’S REPORT To the Members of Vedanta Limited Report on the Audit of the Standalone Ind AS Financial Statements Opinion We have audited the accompanying standalone Ind AS financialstatementsofVedantaLimited(“theCompany”), which comprise the Balance sheet as at 31 March 2023, the StatementofProfitandLoss,includingthestatementof Other Comprehensive Income, the Cash Flow Statement and the Statement of Changes in Equity for the year then ended, andnotestothestandaloneIndASfinancialstatements, includingasummaryofsignificantaccountingpoliciesand other explanatory information. In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standaloneIndASfinancialstatementsgivetheinformation 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 at31March2023,itsprofitincludingothercomprehensive income, its cash flows and the changes in equity for the year ended on that date. Basis for Opinion WeconductedourauditofthestandaloneIndASfinancial statements in accordance with the Standards on Auditing (SAs),asspecifiedundersection143(10)oftheAct. 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 thatarerelevanttoourauditofthefinancialstatements under the provisions of the Act and the Rules thereunder, andwehavefulfilledourotherethicalresponsibilitiesin accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficientandappropriatetoprovideabasisforouraudit opiniononthestandaloneIndASfinancialstatements. Key Audit Matters Key audit matters are those matters that, in our professional judgment,wereofmostsignificanceinourauditofthe standaloneIndASfinancialstatementsforthefinancial year ended 31 March 2023. These matters were addressed inthecontextofourauditofthestandaloneIndASfinancial 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 havefulfilledtheresponsibilitiesdescribedintheAuditor’s responsibilities for the audit of the standalone Ind AS financialstatementssectionofourreport,includingin 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 standaloneIndASfinancialstatements.Theresultsofour audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinionontheaccompanyingstandaloneIndASfinancial statements. Key audit matters How our audit addressed the key audit matter Accounting and disclosure of related party transactions(asdescribedinnote39oftheStandaloneIndASfinancialstatements) The Company has undertaken transactions with related party, Vedanta Resources Limited (‘VRL’), itsintermediatedholdingcompanyanditsaffiliates including among others payment of brand and strategic management fee, agency commission, obtaining guarantees and payment of consideration thereof. Accounting and disclosure of such related party transactionshasbeenidentifiedasakeyaudit matterduetoa)Significanceofsuchrelatedparty transactions; b) Risk of such transactions being executed without proper authorizations; and c) Risk of material information relating to aforesaid transactionsnotgettingdisclosedinthefinancial statements. • • 326 Our procedures included the following: • • • • Obtained and read the Company’s policies, processes and procedures in respectofidentificationofsuchrelatedpartiesinaccordancewithrelevantlaws and standards, obtaining approval, recording and disclosure of related party transactionsandidentifiedkeycontrols.Forselectedcontrolswehaveperformed tests of controls. Tested such related party transactions and balances with the underlying contracts, confirmationlettersandothersupportingdocumentsprovidedbytheCompany. Examined the approvals of the board and/or audit committee of these transactions. Obtained and assessed the legal and accounting opinion issued by experts engaged by the management for the accounting of agency commission with the parent company. Obtained and assessed the benchmarking report issued by the experts engaged by the management for the brand and strategic management fee. • Assessed the competence and objectivity of the external experts • Engaged transfer pricing experts to assist us in corroborating the arms-length assessment carried out by the management for brand and strategic fee. Held discussions and obtained representations from the management in relation to such transactions. Readthedisclosuresmadeinthisregardinthefinancialstatementsandassessed whether relevant and material information have been disclosed. • VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Key audit matters How our audit addressed the key audit matter Recoverability of carrying value of property plant and equipment capital work in progress and exploration intangible assets under development and Non-current Investments (as described in note 3(a)(F), 3(a)(G)(iii), 3(c)(A)(i), 3(c)(A)(iii), 3(c)(A)(v), 5 and 34 of the StandaloneIndASfinancialstatements) Asat31March2023,theCompanyhadsignificant amounts of property, plant and equipment, capital work in progress and exploration intangible assets under development which were carried at historical cost less depreciation. We focused our efforts on the Cash Generating Unit (“CGU”) at (a) Tuticorin within the copper segment; (b) Rajasthan block within the oil & gas segment; (c) Investments made in Western Cluster Limited (WCL) in Liberia within the Iron Ore segment through the wholly owned subsidiary Bloom Fountain Limited and d) Investments made in Optionally Convertible Redeemable Preference Shares (OCRPS) of THL Zinc Ventures Limited (THLZVL), a wholly owned subsidiary within the ZincInternationalsegment;asithadidentified impairment (charge) / reversal indicators. Recoverability of property plant and equipment, capital work in progress and exploration intangible assetsbeingcarriedatcosthasbeenidentifiedas a key audit matter due to: • • • • • • • • Thesignificanceofthecarryingvalueofassets being assessed. The fact that the assessment of the recoverable amount of the Company’s CGU involves significantjudgementsaboutthefuturecash flow forecasts, start date of the plant and the discount rate that is applied. The withdrawal of the Company’s licenses to operate the copper plant. The revision to brent oil assumptions up to 2040 due to increased demand. Changes in production forecasts due to adjustments in the future reserve estimates Levy of Special Additional Excise Duty (‘SAED’) onoilproducersduetosignificantincreasein crude prices resulting windfall gains to domestic crude producers. The fact that the Company’s subsidiary WCL obtained the mining license and has started the mining activity at Bomi mine in Liberia, which were suspended since 2015 due to outbreak of Ebola. ThefactthatTHLZVLhasgeneratedprofitability owing to increase in reserves and production at Zinc International. The key judgements and estimates centered on the likely outcome of the litigations with respect to withdrawal of license to operate the Copper plant, cash flow forecasts, likelihood of license extension, interpretations on mechanism of levy of SAED, discount rate assumptions and related disclosures as given in note 5 (Property, plant and equipment) / 34 (Exceptional items) of the accompanying financialstatements. Our audit procedures included the following: • • • Obtained and read the Company’s policies, processes and procedures in respect ofidentificationofimpairmentindicators,recordinganddisclosureofimpairment charge/(reversal)andidentifiedkeycontrols.Forselectedcontrolswehave performed tests of controls. 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 and Ind AS 109. In relation to the CGU at (a) Tuticorin within the copper segment; (b) Rajasthan block within the oil & gas segment; (c) Investment made in WCL through wholly owned subsidiary Bloom Fountain Limited within the Iron Ore segment and d) Investments made in Optionally Convertible Redeemable Preference Shares (OCRPS) of THL Zinc Ventures Limited (THLZVL), a wholly owned subsidiary within the Zinc International segment where impairment (charge) / reversal indicators wereidentified,obtainedandevaluatedthevaluationmodelsusedtodetermine the recoverable amount by assessing the key assumptions used by management, which included: – Assessed the implications of withdrawal of Company’s license to operate the copper plant at Tuticorin. Read the external legal opinions in respect of the merits of the case and assessed management’s position through discussions with the legal counsel to determine the basis of their conclusion and its consequential impact on the reopening of the plant. – Evaluated the valuation methodology adopted by the management i.e. determination of Value In Use in light of the facts and circumstances of the matter. – Assessed management’s forecasting accuracy by comparing prior year forecasts to actual results and assessed the potential impact of any variances. – Corroborated the sales price assumptions used in the models against analyst consensus and assessing the reasonableness of costs. – Compared the production forecasts used in the impairment tests with management’s approved reserves and resources estimates, – Compared the SAED forecast used in the impairment tests with actual levy of current year and obtained external legal opinion for the interpretations made over the determination of amount due to the levy of SAED. – Tested the weighted average cost of capital used to discount the impairment models. – Tested the integrity of the models together with their clerical accuracy. – TestedtheclassificationofexpensesincurredinrespectoftheBomiminesin Liberia to evaluate whether these are eligible for reversal. – Tested arithmetical accuracy of bifurcation of expenses between the 3 mines in Western cluster. – Compared assumptions used by management in respect of price forecast and ore grade against the consensus report and reserve and resource report. – AssessedtheproductionandprofitabilitytrendintheZincInternationalsegment and compared the same with the projected cash flows for reasonableness. – Assessed reserves and resources estimation methods and policies and reading reports provided by management’s external reserves experts for the oil and gas assets of the Company and the assets located in the subsidiary companies i.e. WCLandTHLZBVLandassessedthescopeofworkandfindingsofthesethird parties; – Assessed the competence, capability and objectivity of experts engaged by management;throughunderstandingtheirrelevantprofessionalqualifications and experience. – Engaged valuation experts to assist in performance of the above procedures. • Assessed the disclosures made by the Company in this regard and evaluated the considerations leading to disclosure of above impairment (charge) / reversal as exceptional items. 327 STANDALONE Key audit matters How our audit addressed the key audit matter Recoverability of disputed trade receivables in Power segment(asdescribedinnote3(c)(B)(ii)and7oftheStandaloneIndASfinancial statements) As of 31 March 2023 the value of disputed receivables in the power segment aggregated to ` 878 crore. Due to short supply or non-supply of power due to transmission line constraints, order received from Orissa State Electricity Regulatory Commission (OERC)anddisagreementsoverthequantification relating to aforementioned disputes or timing of the recovery of receivables, the recovery of said receivables are subject to increased risk. Some of these balances are also subject to litigation. Theriskisspecificallyrelatedtoreceivables from GRIDCO. 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. Our audit procedures included the following: • • • Examined the underlying power purchase agreements. Examined the relevant state regulatory commission, appellate tribunal and court rulings. Obtained and assessed the model prepared by the management for computation of Expected credit loss on the disputed receivables, including testing of key assumptions. • Engaged valuation experts to assist in performing above procedures. • Tested arithmetical accuracy of the models prepared by the management. • ObtainedindependentexternallawyerconfirmationfromLegalCounselofthe Company who is contesting the cases. 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. • • Assessed the competence and objectivity of the Company's experts. • Assessed the disclosures made by the Company in this regard. Claims and exposures relating to taxation and litigation(asdescribedinnote3(c)(B)(i),38Dand44oftheStandaloneIndASfinancial 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, vendor arbitrations, income tax disallowances and various indirect tax disputes which have been disclosed / providedforinthefinancialstatementsbasedon the facts and circumstances of each case. Taxation and litigation exposures have been identifiedasakeyauditmatterduetothe complexities involved in these matters, timescales involvedforresolutionandthepotentialfinancial impactoftheseonthefinancialstatements. Further,significantmanagementjudgementis involved in assessing the exposure of each case and thus a risk that such cases and thus a higher risk involved on adequacy of provision or disclosure of such cases. • • • Our audit procedures included the following:- • Obtainedanunderstandingoftheprocessofidentificationofclaims,litigationsand itsclassificationasprobable,possibleorremoteandidentifiedkeycontrolsinthe process. For selected controls we have performed tests of controls. Obtained the summary of Company’s legal and tax cases and critically assessed management’s position through discussions with the Legal Counsel, Head of Tax andoperationalmanagement,onboththeprobabilityofsuccessinsignificant cases, and the magnitude of any potential loss. ObtainedindependentexternallawyerconfirmationfromLegalCounselofthe Company who is contesting the cases. Examined external legal opinions (where considered necessary) and other evidence tocorroboratemanagement’sassessmentoftheriskprofileinrespectoflegal 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 subsidiaries or that differences in positions are adequately justified. Assessed whether management assessment of similar cases is consistent with the positions taken in earlier periods or that difference in positions are adequately justified. Assessedtherelevantdisclosuresmadewithinthefinancialstatementstoaddress accuracy of the amounts and 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)(ii) and 35 of the StandaloneIndASfinancialstatements) Deferred tax assets as at 31 March 2023 includes MAT credits of ` 9,184 crore which is available for utilization against future tax liabilities. Of the aforesaid, we focused our effort on MAT assets of ` 2,689 Crore which is expected to be utilised in thefourteenthyearandfifteenthyear,fifteenyears being the maximum permissible time period to utilize the same. The analysis of the recoverability of such deferred taxassetshasbeenidentifiedasakeyauditmatter because the assessment process involves judgement regardingthefutureprofitability,allowabilityoftax positions / deductions claimed by the management in the tax computations and likelihood of the realization of these assets, in particular whether therewillbetaxableprofitsinfutureperiodsthat support the recognition of these assets. This requires assumptionsregardingfutureprofitability,which is inherently uncertain. Accordingly, the same is considered as a key audit matter. Our audit procedures included the following:- • • • • Obtained an understanding of the management’s process for estimating the recoverabilityofthedeferredtaxassetsandidentifiedkeycontrolsintheprocess. For selected controls we have performed tests of controls. Obtainedandanalysedthefutureprojectionsoftaxableprofitsestimatedby management, assessing the 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 reasonableness of the future cash flow projections. Assessed management’s forecasting accuracy by comparing prior year forecasts to actual results and assessed the potential impact of any variances. Tested the accuracy of the deductions availed under the Income Tax Act included in the tax computation. • Tested the computation of the amounts recognized as deferred tax assets. • Engaged valuation experts to assist in performance of the above procedures. • Assessed the competence and objectivity of the experts engaged by us. • Assessed the disclosures made by the Company in this regard. 328 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 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 includethestandaloneIndASfinancialstatementsandour auditor’s report thereon. OuropiniononthestandaloneIndASfinancialstatements 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 Ind AS financialstatements,ourresponsibilityistoreadtheother information and, in doing so, consider whether such other informationismateriallyinconsistentwiththefinancial 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 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 financialstatementsthatgiveatrueandfairviewofthe financialposition,financialperformanceincludingother 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(IndAS)specifiedundersection133oftheAct 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 andmaintenanceofadequateinternalfinancialcontrols, 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 financialstatementsthatgiveatrueandfairviewandare free from material misstatement, whether due to fraud or error. InpreparingthestandaloneIndASfinancialstatements, 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. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Those Charged with Governance are also responsible for overseeingtheCompany’sfinancialreportingprocess. Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whetherthestandaloneIndASfinancialstatementsasa 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 basisofthesestandaloneIndASfinancialstatements. 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 thestandaloneIndASfinancialstatements,whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence thatissufficientandappropriatetoprovideabasis 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 financialcontrolswithreferencetofinancialstatements 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 maycastsignificantdoubtontheCompany’sability 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 inthefinancialstatementsor,ifsuchdisclosuresare 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. 329 STANDALONE • Evaluate the overall presentation, structure and contentofthestandaloneIndASfinancialstatements, including the disclosures, and whether the standalone IndASfinancialstatementsrepresenttheunderlying 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 timingoftheauditandsignificantauditfindings,including anysignificantdeficienciesininternalcontrolthatwe 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 most significanceintheauditofthestandaloneIndASfinancial statementsforthefinancialyearended31March2023and 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 outweighthepublicinterestbenefitsofsuchcommunication. Other Matter Wedidnotauditthefinancialstatementsandotherfinancial information, in respect of an unincorporated joint venture, whosefinancialstatementsincludetotalassetsof` 149 as at 31 March 2023, and total revenues of ` 100 Crore, totalnetprofitaftertaxof` 32 Crore, total comprehensive income of ` 32 Crore for the year ended 31 March 2023, and net cash inflows of ` 0 Crore for the year ended 31March2023.Thesefinancialstatementsandother financialinformationofthesaidunincorporatedjoint venture have not been audited by other auditors, whose unauditedfinancialstatementsandotherunaudited financialinformationhavebeenfurnishedtousby the management. Our opinion on the standalone Ind ASfinancialstatements,insofarasitrelatestothe amounts and disclosures included in respect of the said unincorporated joint venture and our report in terms of sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid unincorporated joint venture, is based solely on the unaudited information furnished to us bythemanagement.Ouropinionisnotmodifiedinrespect of this matter. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government 330 of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the mattersspecifiedinparagraphs3and4oftheOrder. 2. As required by Section 143(3) of the Act, we report that: (a) (b) 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; In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; (c) TheBalanceSheet,theStatementofProfit 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) (e) (f) (g) (h) In our opinion, the aforesaid standalone Ind AS financialstatementscomplywiththeAccounting StandardsspecifiedunderSection133ofthe Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; On the basis of the written representations received from the directors as on 31 March 2023 taken on record by the Board of Directors, none of thedirectorsisdisqualifiedason31March2023 from being appointed as a director in terms of Section 164 (2) of the Act; With respect to the adequacy of the internal financialcontrolswithreferencetothese standaloneIndASfinancialstatementsandthe operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; In our opinion, the managerial remuneration for the year ended 31 March 2023 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; 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: i. The Company has disclosed the impact of pendinglitigationsonitsfinancialpositionin itsstandaloneIndASfinancialstatements– Refer Note 38 and Note 44 to the standalone IndASfinancialstatements; VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ii. iii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company iv. a) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 39 (H) to the standalone Ind AS financialstatements,nofundshave been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other personsorentitiesidentifiedinany manner whatsoever by or on behalf of theCompany(“UltimateBeneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; b) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 39(H) tothestandaloneIndASfinancial statements, no funds have been received by the Company from any person(s) or entity(ies), including INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identifiedinanymannerwhatsoever by or on behalf of the Funding Party (“UltimateBeneficiaries”)orprovideany guarantee, security or the like on behalf oftheUltimateBeneficiaries;and c) Based on such audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub- clause (a) and (b) contain any material misstatement. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Act. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable only w.e.f. 01 April 2023 for the company, hence the reporting under this clause is not applicable. v. vi. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 per Vikas Pansari Partner Place of Signature: Mumbai Membership Number: 093649 UDIN: 23093649BGXPKQ3436 Date: 12 May 2023 331 STANDALONE 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 In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that: (i) (a) (A) The Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment. (B) The Company has maintained proper records showing full particulars of intangibles assets. (b) Property,PlantandEquipmenthavebeenphysicallyverifiedbythemanagementinaccordancewithaplanned programme of verifying them once in three years which is reasonable having regard to the size of the Company and the nature of its assets, except for Property, Plant and Equipment located at Tuticorin Plant amounting to ` 1,033 Crore due to suspension of operations since April 2018 (refer Note 3(c)(A)(iii)). No material discrepancies werenoticedonsuchverification. (c) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company except for the title deeds of immovable properties as per table below: Particulars Gross carrying value Held in the name of Land 53 ROU Land 50 Land 20 Land & Building 1,749 Erstwhile Company Sterlite Industries (India) Limited that merged with the Company Erstwhile Company Sterlite Industries (India) Limited that merged with the Company Erstwhile Company Vedanta Aluminium Limited that merged with the Company Oil and Natural Gas Corporation Limited & Cairn India Limited (now a division of the company) Whether promoter, director or their relative or employee No No Period held since Reason for not being held in name of company 1965-2012 The title deeds are in the names of erstwhile Companies that merged with the Company under Section 391 to 394 of the Companies Act, 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honourable High Courts. 1993-2009 No 2008-2012 No 10 April 2009 The title deeds of Oil & Gas exploration blocks are jointly owned by the JV partners and are in the name of ONGC the licensee of these exploration blocks The original title deeds amounting to ` 68 Crore pertaining to immovable properties have been pledged with lenders,whichhavebeenconfirmedbythelenders/trustees. (d) The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended 31 March 2023 (e) There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder. (ii) (a) Theinventoryhasbeenphysicallyverifiedbythemanagementduringtheyearexceptforinventoriesaggregating ` 269 Crore lying at Tuticorin plant which is under suspension (refer note 3(c)(A)(iii)) and inventories lying with third parties amounting to ` 623Crore.Inouropinion,thefrequencyofverificationbythemanagement isreasonableandthecoverageandprocedureforsuchverificationisappropriate.Inventorieslyingwiththird partieshavebeenconfirmedbythemasat31March2023andnodiscrepancieswerenoticedinrespectofsuch confirmations.Discrepanciesof10%ormoreinaggregateforeachclassofinventorywerenotnoticedinrespect ofsuchverification. 332 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (b) Asdisclosedinnote17Btothefinancialstatements,theCompanyhasbeensanctionedworkingcapitallimitsin excess of ` fiveCroresinaggregatefrombanksandfinancialinstitutionsduringtheyearonthebasisofsecurityof currentassetsoftheCompany.Basedontherecordsexaminedbyusinthenormalcourseofauditofthefinancial statements,thequarterlyreturns/statementsfiledbytheCompanywithsuchbanksandfinancialinstitutionsare in agreement with the audited books of accounts of the Company. (iii) (a) During the year the Company has provided loans and stood guarantee to companies as follows: Particulars (` In Crores) Aggregate amount granted/ provided during the year - Subsidiaries Balance outstanding as at balance sheet date (including opening balances) - Subsidiaries - Ultimate parent company - Other Parties Guarantees Loans 1,174 9,541 115 - 543 630 - 53 The Company has not provided any security and advances in the nature of loans during the year. (b) (c) During the year the investments made, guarantees provided, and the terms and conditions of the grant of all loans and guarantees provided to companies or any other party are not prejudicial to the Company's interest. The Company has not given any security and has not granted any advances in nature of loans during the year. The Company has granted loans during the year to its wholly owned subsidiaries where the schedule of repayment of principal and payment of interest has been stipulated and the repayment or receipts are regular. The Company has not granted any advances in nature of loans during the year. (d) Therearenoamountsofloansandadvancesinthenatureofloansgrantedtocompanies,firms,limitedliability partnerships or any other parties which are overdue for more than ninety days. (e) During the year, the Company had renewed loans to its wholly owned subsidiaries to settle the loans which had fallen due during the year. The aggregate amount of such dues renewed by fresh loans and the percentage of the aggregate to the total loans or advances in the nature of loans granted during the year are as follows: Name of the parties Malco Energy Limited (MEL) Sesa Mining Corporation Limited (SMCL) Vizag General Cargo Berth Private limited (VGCB) Aggregate amount of loans or advances in the nature of loans granted during the year (in INR Crore)* 503 4 19 Aggregate overdue amount settled by renewal or extension or by fresh loans granted to same parties (INR Crore) Percentage of the aggregate to the total loans or advances in the nature of loans granted during the year 147 4 19 29% 100% 100% * loan renewed/ extended is considered as new loan granted during the year for the purpose of reporting under this clause (f) The Company has not granted any loans or advances in the nature of loans, either repayable on demand or without specifyinganytermsorperiodofrepaymenttocompanies,firms,LimitedLiabilityPartnershipsoranyother parties. Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company. 333 STANDALONE (iv) (v) (vi) There are no loans, investments, guarantees, and security in respect of which provisions of sections 185 of the Companies Act, 2013 are applicable. and hence not commented upon. Loans, investments, guarantees and security in respect of which provisions of Section 186 of the Companies Act, 2013 are applicable have been complied with by the Company. The Company has neither accepted any deposits from the public nor accepted any amounts which are deemed to be deposits during the year. However, in regard to the unclaimed deposits the Company has complied with the provisions of Sections 73 to 76 of the Act and the rules made thereunder, to the extent applicable. We are informed by the management that no order has been passed by the Company Law Board, National Company Law Tribunal or Reserve Bank of India or any Court or any other Tribunal in this regard. 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 Companies Act, 2013, related to the manufacture of goods and generation of electricity, and are of the opinion that primafacie,thespecifiedaccountsandrecordshave been made and maintained. We have not, however, made a detailed examination of the same. (vii) (a) Undisputed statutory dues including goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. According to the information and explanations given to us and based on audit procedures performed by us, no undisputed dues in respect of goods and services tax, provident fund, employees’ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues which were outstanding, at the year end, for a period of more than six months from the date they became payable. (vii) (b) The dues of goods and services tax, provident fund, employees’ state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess, and other statutory dues have not been deposited on account of any dispute as listed in Appendix-1 at the end of this report. (viii) The Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company. 334 (ix) (a) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender. (b) The Company has not been declared wilful defaulterbyanybankorfinancialinstitutionor government or any government authority. (c) Term loans were applied for the purpose for which the loans were obtained (d) Onanoverallexaminationofthefinancial statements of the Company, the Company has used funds raised on short-term basis in the form of working capital and short term borrowings from banks aggregating to ` 4,645 Crore for long-term purposes representing acquisition of property plant and equipment. (e) Onanoverallexaminationofthefinancial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures. (f) The Company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies. Hence, the requirement to report on clause (ix)(f) of the Order is not applicable to the Company. (x) (a) The Company has not raised any money during the year by way of initial public offer / further public offer (including debt instruments) hence, the requirement to report on clause 3(x)(a) of the Order is not applicable to the Company. (b) The Company has not made any preferential allotment or private placement of shares /fully or partially or optionally convertible debentures during the year under audit and hence, the requirement to report on clause 3(x)(b) of the Order is not applicable to the Company. (xi) (a) No fraud by the Company or no material fraud on the Company has been noticed or reported during the year. (b) During the year, no report under sub-section (12) of section 143 of the Companies Act, 2013 has beenfiledbycostauditorandsecretarialauditor or by us in Form ADT – 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government. (c) We have taken into consideration the whistle blower complaints received by the Company during the year while determining the nature, timing and extent of audit procedures. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (xii) The Company is not a nidhi Company as per the provisions of the Companies Act, 2013. Therefore, the requirement to report on clause 3(xii)(a), (b) & (c) of the Order is not applicable to the Company. (xiii) Transactions with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed inthenotestothefinancialstatements,asrequiredby the applicable accounting standards. (xiv) (a) The Company has an internal audit system commensurate with the size and nature of its business. (b) The internal audit reports of the Company issued till the date of the audit report, for the period under audit have been considered by us. (xv) The Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence requirement to report on clause 3(xv) of the Order is not applicable to the Company. (xvi) The provisions of section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934) are not applicable to the Company. Accordingly, the requirement to report on clause (xvi)(a), (b), (c) & (d) of the Order is not applicable to the Company. (xvii) The Company has not incurred cash losses in the currentfinancialyear. (xviii) There has been no resignation of the statutory auditors during the year and accordingly requirement to report on Clause 3(xviii) of the Order is not applicable to the Company (xix)Onthebasisofthefinancialratiosdisclosedinnote 42tothefinancialstatements,ageingandexpected datesofrealizationoffinancialassetsandpaymentof financialliabilities,otherinformationaccompanying thefinancialstatements,ourknowledgeoftheBoard of Directors and management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. (xx) (a) In respect of other than ongoing projects, there are no unspent amounts that are required to be transferredtoafundspecifiedinScheduleVIIof the Companies Act (the Act), in compliance with second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in note 41 (a)tothefinancialstatements. (b) There are no unspent amounts in respect of ongoing projects, that are required to be transferred to a special account in compliance of provision of sub section (6) of section 135 of Companies Act. This matter has been disclosed in note41(a)tothefinancialstatements. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 per Vikas Pansari Partner Place of Signature: Mumbai Membership Number: 093649 UDIN: 23093649BGXPKQ3436 Date: 12 May 2023 335 STANDALONE APPENDIX-1 Dues not deposited on account of dispute (Amount in INR Crore) Name of the statute Nature of the dues 31 March 2023 Period to which the amount relates Forum where the dispute is pending Income Tax Act, 1961 Income tax 729.11 AY 2006-07 ; 2008-09 Commissioner of Income Tax (Appeals) to 2013-14 Income Tax Act, 1961 Income tax 30.35 1999-00, 2008-09, Notapplicableasapplicationfiledforrectification 2009-10 Income Tax Act, 1961 Income tax 2,014.30 2002-03; 2004-05 to Income Tax Appellate Tribunal 2009-10; 2014-15, 2015-16 Income Tax Act, 1961 Income tax 1,493.06 2007-08 to 2013-14; High Court 2019-20 Income Tax Act, 1961 Income tax 205.82 2007-08 Supreme Court Custom Act, 1962 Customs duty on exports 47.99 FY 2017-18: FY 2018; Commissioner of Customs 2004-05 to 2009-10 and 2013-14 and 2019-20 Custom Act, 1962 Custom Act, 1962 Customs duty on exports Customs duty on exports 116.99 FY 2004-05 to 2013-14 CESTAT 89.4 FY 2015-16 to Assistant Commissioner FY 2019-20 Custom Act, 1962 Customs Duty 0.18 1996-97, 2005-10, Supreme Court Custom Act, 1962 Custom Act, 1962 Custom Act, 1962 Customs Duty Customs Duty Customs Duty 2015 47.34 2005-06 to 2006-07 High Court - 2012-13 Deputy Commissioner, Customs - 2012-13 to 2016-17; 2018-19; 2019-20 CESTAT Custom Act, 1962 Customs Duty 7.67 2012-13 Commissioner, Appeals Central Excise Act, 1944 Central Excise Act, 1944 Cess Demand - Excess quantity of Crude Oil Demand of Edu.Cess & Hr. Sec. Cess on Oil Cess Central Excise Act, 1944 Excise duty 0.04 02 June to 03 August CESTAT 49.5 December 2013 to February 2015 CESTAT 142 1997-98 to 2012-13; FY 2014-15; 2017-18 and 2018-19 CESTAT Central Excise Act, 1944 Excise Duty 21.73 2017-18 Assistant Commissioner Central Excise Act, 1944 Penalty for Non payment of NCCD in time 0.4 November 2007 to Additional Commissioner July 2008 Central Excise Act, 1944 Excise duty 8.34 FY 1997-2013 Commissioner of Central Excise /Jt.Commisioner Central Excise Act, 1944 Excise duty - FY 2020-21 Commissioner Appeals Central Excise Act, 1944 Excise duty 4.53 2000-2006 High Court Central Sales Tax, 1956 Sales tax 13.56 FY 2004-17; 2019-20 Additional Commissioner Central Sales Tax, 1956 Sales Tax 1.69 2012-2020 Assistant Commissioner Central Sales Tax, 1956 Sales Tax 0.02 2019-20 Assistant CTO Central Sales Tax Act / Gujarat VAT Act Central Sales Tax Act / Andhra Pradesh VAT Act Sales Tax Sales Tax 0.03 FY 14-15 & 15-16 Joint Commissioner of Commercial Tax 0.11 2012-2015 Dy. Commissioner Appeals/Tribunal Central Sales Tax, 1956 Sales tax 1.84 FY 2008-12 Central Sales Tax, 1956 Sales tax 18.39 98-99(CST); FY 2009- 10; FY 2010-11 VAT Tribunal High Court Central Sales Tax, 1956 Sales tax 16.15 2007-08 to 2014-15 Tamil Nadu Sales tax Tribunal 336 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Name of the statute Nature of the dues 31 March 2023 Period to which the amount relates Forum where the dispute is pending Central Sales Tax, 1956 Sales Tax 5.35 October 2015 to June 2017 Dy. Commissioner Central Sales Tax, 1956 Sales Tax - 2014-15 Commercial tax board, Rajasthan Electricity Duty Electricity Duty - 2017-18 to 2020-21 High Court Entry Tax Act, 1976 Entry Tax 475.32 April 2007 to June High Court 2017 Entry Tax Act, 1976 Entry Tax 0.93 18 August 2013- Additional commissioner of commercial taxes 31 March2015 Entry Tax Act, 1976 Entry Tax - October 2015 to Dy. Commissioner June 2017 Entry Tax Act, 1976 Entry Tax - FY 2008-12 Joint Commissioner of Commercial Tax Energy Cess Finance Act, 1994 Energy Cess Service tax Finance Act, 1994 Service tax 38.28 2014-19 High Court 27.84 FY 2015-2016 to FY 2016-18 Assistant Commissioner (Central Tax) Audit 209.22 2006-2017 and 2017- 18 (Till 30 June 2017) CESTAT Finance Act, 1994 Service tax 18.55 FY 2016-17 Directorate General of Goods & Service Tax Intelligance Finance Act, 1994 Finance Act, 1994 Service Tax Service Tax - 2007-13 Commissioner of Central Excise/Jt.Commissioner 23.51 FY 2006-07, 2007-08; High Court FY 2016-17 Foreign Development Tax & Foreign Development Fund Forest Development tax 394.75 FY 2008 to till date Supreme Court Goa Rural Improvement & Welfare Cess Act,2000 Cess Goods and Service tax , 2017 Goods and Service tax , 2017 GST GST 126.52 FY 2010 to till date High court 0.51 2018-19 Appellate authority - 2017-18 Additional Commissioner of Central Tax, GST & CX Commissionarate MMRDA MMRDA Railways Act 1971 and wagon investment scheme Royalty 110.16 FY 2013-14 Forest lease rent Stacking and Warfare charge - FY 2009 4.09 FY 2010 High Court High Court High Court Value Added Tax Act,2006 Value Added Tax 52.87 2007-08 to 2014-15 Commissioner Value Added Tax Act,2006 Value Added Tax 0.34 October 2015 to June 2017 Dy. Commissioner Value Added Tax Act,2006 Value Added Tax 321.92 1998-99 to 2014-15; High Court Total 6,870.70 2015-16, 2016-17 337 STANDALONE 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”) Wehaveauditedtheinternalfinancialcontrolsover financialreportingofVedantaLimited(“theCompany”) asof31 March2023inconjunctionwithourauditofthe standaloneIndASfinancialstatementsoftheCompanyfor the year ended on that date. Management’s Responsibility for Internal Financial Controls The Company’s Management is responsible for establishing andmaintaininginternalfinancialcontrolsbasedonthe internalcontroloverfinancialreportingcriteriaestablished 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 adequateinternalfinancialcontrolsthatwereoperating effectivelyforensuringtheorderlyandefficientconductof 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 financialinformation,asrequiredundertheCompaniesAct, 2013. Auditor’s Responsibility Our responsibility is to express an opinion on the Company'sinternalfinancialcontrolsoverfinancial reportingwithreferencetothesestandalonefinancial 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”)andtheStandardsonAuditingasspecifiedunder section 143(10) of the Companies Act, 2013, to the extent applicabletoanauditofinternalfinancialcontrolsand, 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 adequateinternalfinancialcontrolsoverfinancialreporting withreferencetothesestandalonefinancialstatements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidenceabouttheadequacyoftheinternalfinancial controlsoverfinancialreportingwithreferencetothese standalonefinancialstatementsandtheiroperating effectiveness.Ourauditofinternalfinancialcontrolsover financialreportingincludedobtaininganunderstanding ofinternalfinancialcontrolsoverfinancialreporting withreferencetothesestandalonefinancialstatements, 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 materialmisstatementofthefinancialstatements,whether due to fraud or error. We believe that the audit evidence we have obtained is sufficientandappropriatetoprovideabasisforouraudit opinionontheinternalfinancialcontrolsoverfinancial reportingwithreferencetothesestandalonefinancial statements. Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Financial Statements Acompany'sinternalfinancialcontroloverfinancial reportingwithreferencetothesestandalonefinancial statements is a process designed to provide reasonable assuranceregardingthereliabilityoffinancialreporting andthepreparationoffinancialstatementsforexternal purposes in accordance with generally accepted accountingprinciples.Acompany'sinternalfinancial controloverfinancialreportingwithreferencetothese standalonefinancialstatementsincludesthosepoliciesand 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 recordedasnecessarytopermitpreparationoffinancial 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 amaterialeffectonthefinancialstatements. Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these Standalone Financial Statements Becauseoftheinherentlimitationsofinternalfinancial controlsoverfinancialreportingwithreferencetothese standalonefinancialstatements,includingthepossibility 338 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 theinternalfinancialcontrolsoverfinancialreportingwith referencetothesestandalonefinancialstatementstofuture periodsaresubjecttotheriskthattheinternalfinancial controloverfinancialreportingwithreferencetothese standalonefinancialstatementsmaybecomeinadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. suchinternalfinancialcontrolsoverfinancialreportingwith referencetothesestandalonefinancialstatementswere operating effectively as at 31 March 2023 based on the internalcontroloverfinancialreportingcriteriaestablished by the Company considering the essential components of internal control stated in COSO 2013 criteria. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 Opinion In our opinion, the Company has, in all material respects, adequateinternalfinancialcontrolsoverfinancialreporting withreferencetothesestandalonefinancialstatementsand per Vikas Pansari Partner Place of Signature: Mumbai Membership Number: 093649 Date: 12 May 2023 UDIN: 23093649BGXPKQ3436 339 STANDALONE BALANCE SHEET As at 31 March 2023 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 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 Total Equity Liabilities Non-current liabilities Financial liabilities Borrowings Lease liabilities Derivatives Otherfinancialliabilities Provisions Other non-current liabilities Total non-current liabilities Current Liabilities Financial liabilities Borrowings Lease liabilities 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 Otherfinancialliabilities Provisions Income tax liabilities (net) Other current liabilities Total current liabilities Total Equity and Liabilities Note As at 31 March 2023 As at 31 March 2022 (` in Crore) 5 5 5 5 6A 7 8 9 35 35 10 11 6B 7 12 13 8 22 9 10 14 15 17A 21 22 20 24 23 17B 21 19 18 22 20 24 23 40,488 10,090 834 2,094 59,872 847 126 2,679 5,295 1,311 2,046 1,25,682 39,490 9,226 26 1,488 60,881 1,075 154 1,677 1,118 1,800 2,214 1,19,149 8,217 8,563 4,973 1,694 5,147 318 507 98 7,240 190 4,717 33,101 1,58,783 372 67,440 67,812 32,606 51 20 - 1,373 2,364 36,414 9,417 46 10,485 218 5,436 151 18,425 129 1,025 9,225 54,557 1,58,783 585 2,328 5,518 1,393 365 249 7,394 - 3,197 29,592 1,48,741 372 77,277 77,649 23,421 57 6 192 1,268 2,751 27,695 13,275 25 9,261 195 5,329 277 9,802 158 601 4,474 43,397 1,48,741 Seeaccompanyingnotestothefinancialstatements 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 Group ChiefExecutiveOfficer DIN 07291685 per Vikas Pansari Partner Membership No:093649 Place: Mumbai Date: 12 May 2023 340 Prerna Halwasiya CompanySecretaryandComplianceOfficer ICSI Membership No. A20856 Place: Mumbai Date: 12 May 2023 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 STATEMENT OF PROFIT AND LOSS For the year ended 31 March 2023 Particulars Revenue from operations Other operating income Other income Total Income Expenses: Cost of materials consumed Purchases of stock-in-trade Changesininventoriesoffinishedgoods,work-in-progressandstock-in-trade Power and fuel charges Employeebenefitsexpense Finance costs Depreciation, depletion and amortisation expense Other expenses Total expenses Profit before exceptional items and tax Net exceptional gain/ (loss) Profit before tax Tax (benefit)/ expense: On other than exceptional items Net current tax expense Netdeferredtaxbenefit,includingtaxcredits On exceptional items Netcurrenttaxbenefit Netdeferredtax(benefit)/expense Net tax (benefit)/expense Net Profit after tax (A) Net Profit after tax before exceptional items (net of tax) Other Comprehensive income Items that will not be reclassified to profit or loss Re-measurementslossofdefinedbenefitplans Taxbenefit (Loss)/ Gain on FVOCI equity investment Items that will be reclassified to profit or loss Net gain/ (loss) on cash flow hedges recognised during the year Tax(expense)/benefit Net(loss)/gainoncashflowhedgesrecycledtostatementofprofitandloss Taxbenefit/(expense) Exchange differences on translation Taxbenefit Total Other Comprehensive Income for the year (B) Total Comprehensive Income for the year (A+B) Earnings per share (in `) - Basic & Diluted Seeaccompanyingnotestothefinancialstatements INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Note 28 29 30 31 26 32 5 33 34 35 Year ended 31 March 2023 67,193 887 21,262 89,342 (` in Crore) Year ended 31 March 2022 62,801 476 8,347 71,624 27,619 173 581 17,019 926 4,384 3,661 12,322 66,685 22,657 4,353 27,010 3,790 (4,033) (50) (53) (346) 27,356 22,900 (15) 6 (37) (46) 2,418 (846) (2,554) 893 518 36 465 419 27,775 23,976 228 (1,172) 11,649 867 3,146 2,945 10,051 51,690 19,934 (318) 19,616 3,505 (1,023) (281) 170 2,371 17,245 17,452 (23) 8 15 0 (142) 51 375 (131) 174 6 333 333 17,578 36 73.54 46.36 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 Group ChiefExecutiveOfficer DIN 07291685 per Vikas Pansari Partner Membership No:093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya CompanySecretaryandComplianceOfficer ICSI Membership No. A20856 341 STANDALONE STATEMENT OF CASH FLOWS For the year ended 31 March 2023 Particulars CASH FLOWS FROM OPERATING ACTIVITIES Profitbeforetaxation Adjustments for: Depreciation, depletion and amortisation Reversal of impairment on assets/ capital work-in-progress written off (net) Reversal of impairment on investments Provision for doubtful debts/ advance/ bad debts written off Liabilities written back Exploration costs written off Other exceptional items FairValuegainonfinancialassetsheldatfairvaluethroughprofitorloss Net gain on sale of long term investments in subsidiary (Refer Note 34(b)) Loss/(Profit)onsale/discardofproperty,plantandequipment(net) Foreign exchange loss (net) Unwinding of discount on decommissioning liability Share based payment expense Interest income Dividend income Interest expense Deferred government grant Changes in assets and liabilities Decrease/ (Increase) in trade and other receivables Decrease/ (Increase) in inventories Increase in trade and other payable Cash generated from operations Income taxes paid (net) Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITES (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 27,010 19,616 3,703 (18) (4,694) 436 (62) 315 - (44) (183) 21 251 30 48 (348) (20,711) 4,354 (81) 204 377 4,911 15,519 (3,028) 12,491 2,968 (1,346) - 239 - 1,412 252 (1) (16) (129) 146 24 29 (221) (7,829) 3,123 (78) (4,996) (3,008) 5,064 15,249 (2,685) 12,564 Purchases of property, plant and equipment (including intangibles) (6,080) (3,674) Proceeds from sale of property, plant and equipment Loans given to related parties (Refer Note 39) Loans repaid by related parties (Refer Note 39) Deposits made Proceeds from redemption of deposits Short term investments made Proceeds from sale of short-term investments Interest received Dividends received Payment made to site restoration fund Advance given for acquisition (Refer Note 3(d) and 39) Purchase of long term investments (Refer Note 39) Sale of long term investments in subsidiary (Refer Note 34(b)) Net cash generated from investing activities 342 41 (543) 475 (889) 1,439 (50,153) 48,995 346 20,711 (60) (565) (70) 2,665 16,312 268 (383) 567 (1,067) 1,285 (25,777) 27,230 206 7,829 (76) - (0) - 6,408 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 STATEMENT OF CASH FLOWS For the year ended 31 March 2023 Particulars CASH FLOWS FROM FINANCING ACTIVITIES (Repayment)/ proceeds from 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 Company (net of tax) Payment of lease liabilities Net cash used in financing activities Net (decrease)/ increase 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) Notes : 1. Thefiguresinparenthesesindicateoutflow. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (900) 9,583 (12,247) 15,333 (6,593) (4,369) (29,959) (22) 816 8,868 (4,066) 18,942 (20,250) (3,872) (16,689) (64) (29,174) (16,315) (371) 5,518 5,147 2,657 2,861 5,518 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 Seeaccompanyingnotestothefinancialstatements 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 Group ChiefExecutiveOfficer DIN 07291685 per Vikas Pansari Partner Membership No:093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya CompanySecretaryandComplianceOfficer ICSI Membership No. A20856 343 STANDALONE STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2023 A. Equity Share Capital Equity shares of ` 1/- each issued, subscribed and fully paid up As at 31 March 2023, 31 March 2022 and 31 March 2021* *There are no prior period errors for the years ended 31 March 2022 and 31 March 2021. Number of shares (in Crore) 372 Amount (` in Crore) 372 B. Other Equity Reserves and Surplus Items of Other comprehensive income Particulars Capital reserve Securities premium Retained earnings Other reserves (Refer below) Equity instruments through OCI Hedging reserve Foreign currency translation reserve (` in Crore) Total other equity Balance as at 01 April 2021 26,027 19,009 13,038 16,443 Profitfortheyear Other comprehensive income for the year, net of tax Total Comprehensive Income for the year Transfer from debenture redemption reserve Recognition of share based payment Stock options cancelled during the year Exercise of stock options Dividends (Refer note 37) - - - - - - - - - - 17,245 (15) - 17,230 - - - - - - - - 557 (557) - 43 24 (34) (20) (16,689) (43) - Balance as at 31 March 2022 26,027 19,009 14,140 15,852 Profitfortheyear Other comprehensive income for the year, net of tax Total Comprehensive Income for the year Recognition of share based payment Stock options cancelled during the year Exercise of stock options Dividends (net of tax) (Refer note 37) - - - - - - - - - 27,356 (9) - 27,347 - - - - - 8 (80) (37,572) - - - 85 (15) (38) - 93 - 15 (39) 1,847 76,418 - 153 - 17,245 180 333 15 153 180 17,578 - - - - - - - - - - - - - - - - 43 (10) (63) (16,689) 108 - (37) 114 - (89) 2,027 77,277 - 27,356 554 419 (37) (89) 554 27,775 - - - - - - - - - - - - 85 (7) (118) (37,572) Balance as at 31 March 2023 26,027 19,009 3,843 15,884 71 25 2,581 67,440 344 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2023 Other reserves comprises: Particulars Balance as at 01 April 2021 Transfer to retained earnings Recognition of share based payment Stock options cancelled during the year Exercise of stock options Balance as at 31 March 2022 Recognition of share based payment Stock options cancelled during the year Exercise of stock options Balance as at 31 March 2023 Capital redemption reserve Debenture redemption reserve 38 - - - - 38 - - - 38 557 (557) - - - - - - - - Preference share redemption reserve 3,087 - - - - 3,087 - - - 3,087 Amalgamation Reserve General reserve Share Based Payment Reserve (` in Crore) Total 3 - - - - 3 - - - 3 12,587 171 16,443 - - - - 12,587 - - - 12,587 - 43 (34) (43) 137 85 (15) (38) 169 (557) 43 (34) (43) 15,852 85 (15) (38) 15,884 Seeaccompanyingnotestothefinancialstatements 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 Group ChiefExecutiveOfficer DIN 07291685 per Vikas Pansari Partner Membership No:093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya CompanySecretaryandComplianceOfficer ICSI Membership No. A20856 345 STANDALONE 1 Company overview: VedantaLimited(“theCompany”)isadiversifiednatural 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 officeoftheCompanyissituatedat1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai-400093, Maharashtra. The Company’s shares are listed on National Stock Exchange ("NSE") and Bombay Stock Exchange ("BSE") 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 ("NYSE"). The ADSs of the Company have been delisted from NYSE effective close of trading on NYSE on 08 November 2021. The Company has been deregistered from SEC under the Exchange Act effective 01 March 2023. The Company is majority owned by Twin Star Holdings Limited (“Twin Star”), Finsider International Company Limited (“Finsider”), Vedanta Holdings Mauritius II Limited ("VHM2L"), Vedanta Holdings Mauritius Limited ("VHML"), Welter Trading Limited (“Welter”) and Vedanta Netherlands Investments BV (“VNIBV”) which are in turn wholly-owned subsidiaries of Vedanta Resources Limited ("VRL"), a company incorporated in the United Kingdom. VRL, through its subsidiaries, held 68.11% (31 March 2022: 69.69%) of the Company's equity as at 31 March 2023. 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 were suspended. During the current year, the Government of Goa has initiated auction of mines in which the Company has participated. The Company has been declared as the principal bidder for the 346 Bicholim mine and has received the Letter of Intent (LOI) from the Government of Goa. • 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 wantoffurtherclarificationandconsequentlythe operationsweresuspended.TheCompanyhasfiled 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 refineryandrodplantSilvassaconsistingof a 133,000 MT of blister/ secondary material processingplant,a216,000tpacopperrefineryplant 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 note 3(c)(A)(iii)). • The Company’s aluminium business include a refineryandcaptivepowerplantatLanjigarhand 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. 2 ThesearetheCompany’sseparatefinancial statements. Basis of preparation and basis of measurement of financial statements (a) Basis of preparation i) Thesefinancialstatementshavebeenprepared in accordance with Indian Accounting Standards VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 (IndAS)notifiedundertheCompanies(Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Companies Act, 2013 (the Act) (as amended from time to time), guidelines issued by the Securities and Exchange Board of India (“SEBI”) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India. Thesefinancialstatementshavebeenpreparedin accordance with the accounting policies, set out below and were consistently applied to all periods presented unless otherwise stated. Thesefinancialstatementsareapprovedforissue by the Board of Directors on 12 May 2023. The revisiontothesefinancialstatementsispermitted by the Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per provisions of the Act. AllfinancialinformationpresentedinIndian 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) Certaincomparativefiguresappearinginthese financialstatementshavebeenregroupedand/ orreclassifiedtobetterreflectthenatureof those items. (b) Basis of measurement Thefinancialstatementshavebeenpreparedona going concern basis using historical cost convention and on an accrual method of accounting, except forcertainfinancialassetsandliabilitieswhichare measured at fair value as explained in the accounting policies below. 3 a) Significant accounting policies (A) Revenue recognition • Sale of goods/rendering of services (including 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 as per terms of contract, which usually is on delivery of the goods to the shipping agent at an amount that reflects the consideration to which the Company expects INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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. Certain of the Company's sales contracts provide for provisional pricing based on the price on the London Metal Exchange (LME) and crude index, asspecifiedinthecontract.Revenueinrespect 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 thestatementofprofitandlossanddisclosed bywayofnotetothefinancialstatements.Final settlement of the price is based on the applicable priceforaspecifiedfutureperiod.TheCompany’s provisionally priced sales are marked to market using the relevant forward prices for the future periodspecifiedinthecontractandisadjusted 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 Companyexcludesgovernment’sshareofprofit 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 notifiedbytheregulatorybodies,asapplicable. 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 347 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 paymentsreceivedplusaspecifiedrateof 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, tofulfilthroughdeliveryofanon-financialitem, these are presented as advance from customers and are recognised as revenue as and when control of respective commodities is transferred tocustomersundertheagreements.Thefixed rateofreturn/discountistreatedasfinance 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 sheetdateisclassifiedasacurrentliability. • 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 throughtheexpectedlifeofthefinancialassetto thegrosscarryingamountofafinancialasset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financialinstrument(forexample,prepayment, extension, call and similar options) but does not consider the expected credit losses. • Dividends Dividend income is recognised in the statement ofprofitandlossonlywhentherighttoreceive payment is established, provided it is probable thattheeconomicbenefitsassociatedwiththe 348 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 willprovidesufficientandsustainablereturn 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 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. The stripping costs 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 providesabenefitintermsofimprovedaccessto ore in future periods and certain criteria are met. Whenthebenefitfromthestrippingcostsare 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 activityassetarenotseparatelyidentifiable,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 overtheexpectedusefullifeoftheidentified component of the ore body. In circumstances where a mining property is abandoned, the cumulative capitalised costs VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Ifsignificantpartsofanitemofproperty,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,arechargedtothestatementofprofitand loss for the period during which such expenses are incurred. An item of property, plant and equipment is derecognised upon disposal or when no future economicbenefitsareexpectedtoarisefrom the continued use of the asset. 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 ofprofitandlosswhentheassetisderecognised. 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 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 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. 349 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 providesufficientandsustainablereturnsrelative to the risks and the Company decides not to proceed with the mine development. Commercial reserves are proved and probable reservesasdefinedbythe'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 statementofprofitandloss. All costs incurred after the technical feasibility and commercial viability of producing hydrocarbons has been demonstrated are capitalised within property, plant and equipment - development/producingassetsonafield-by-field basis. Subsequent expenditure is capitalised only whereiteitherenhancestheeconomicbenefitsof 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 recognisedinthestatementofprofitandlossto 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. STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 • Oil and gas producing facilities Allexpenditurescarriedwithineachfield 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-fieldbasisorgroupoffieldswhichare 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. overhaul cost is charged to the statement of profitandlossifthenextoverhaulisundertaken earlier than the previously estimated life of the economic benefit. The Company reviews the residual value and usefullifeofanassetatleastateachfinancial year-end and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. (C) Intangible assets 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 statementofprofitandlosswhentheassetis derecognised. The amortization period and the amortization method arereviewedatleastateachfinancialyearend.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. Estimated useful lives of assets are as follows: (D) Exploration and evaluation intangible assets Asset Buildings (Residential, factory etc.) Plant and equipment Railway siding Officeequipment Furnitureandfixture Vehicles Useful Life (in years) 3-60 15-40 15 3-6 8-10 8-10 Major inspection and overhaul costs are depreciated over the estimated life of the economicbenefittobederivedfromsuchcosts. The carrying amount of the remaining previous 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 priortoreclassification. 350 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Exploration expenditure includes all direct and allocatedindirectexpenditureassociatedwithfinding specificmineralresourceswhichincludesdepreciation 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 asinglefieldcostcentrewithinproperty,plantand 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 thestatementofprofitandloss. 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 capitalisedcosts.Anysurplus/deficitisrecognisedin thestatementofprofitandloss. (E) Non-current assets held for sale Non-currentassetsanddisposalgroupsareclassified 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 yearfromthedateofclassification. Non-currentassetsanddisposalgroupsclassifiedas 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. (F) Impairment of non-financial assets Impairment charges and reversals are assessed at the level of cash-generating units. A cash-generating unit (CGU)isthesmallestidentifiablegroupofassetsthat 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 effectsoffactorsthatmaybespecifictothecompany 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 351 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 therisksspecifictotheassetforwhichestimatesof future cash flows have not been adjusted. Value in useisdeterminedbyapplyingassumptionsspecific 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. 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 inthestatementofprofitandloss. 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 exploreinthespecificareahasexpiredduringthe period or will expire in the near future, and is not expected to be renewed; • substantive expenditure on further exploration for andevaluationofmineralresourcesinthespecific area is neither budgeted nor planned; • exploration for and evaluation of mineral resources inthespecificareahavenotledtothediscoveryof commercially viable quantities of mineral resources and the Company has decided to discontinue such activitiesinthespecificarea; • sufficientdataexisttoindicatethat,although adevelopmentinthespecificareaislikelyto 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. Whenapotentialimpairmentisidentified,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 thestatementofprofitandloss. (G) Financial instruments Afinancialinstrumentisanycontractthatgivesriseto afinancialassetofoneentityandafinancialliabilityor equity instrument of another entity. (i) • Financial assets – recognition and subsequent measurement Allfinancialassetsarerecognisedinitiallyat fairvalueplus,inthecaseoffinancialassets notrecordedatfairvaluethroughprofitorloss, transaction costs that are attributable to the acquisitionofthefinancialasset.Purchasesor salesoffinancialassetsthatrequiredelivery 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. Tradereceivablesthatdonotcontainasignificant financingcomponentaremeasuredattransaction price as per Ind AS 115. For purposes of subsequent measurement, financialassetsareclassifiedinfourcategories: Financial assets at amortised cost Afinancialassetismeasuredatamortisedcostif both the following conditions are met: 352 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS no recycling of the amounts from OCI to the statementofprofitandloss,evenonsaleof investment. However, the Company may transfer the cumulative gain or loss within equity. • Financial assets at fair value through profit or loss (FVTPL) FVTPL is a residual category for debt instruments and default category for equity instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or asFVOCI,isclassifiedasatFVTPL. 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 at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changesbeingrecognizedinstatementofprofit and loss. Any equity instrument in the scope of Ind AS 109 is 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 appliesareclassifiedasatFVTPL. Forequityinstrumentswhichareclassifiedas FVTPL all subsequent fair value changes are recognisedinthestatementofprofitandloss. Further, the provisionally priced trade receivables are marked to market using the relevant forward pricesforthefutureperiodspecifiedinthe contract and is adjusted in revenue. (ii) Financial Assets - derecognition TheCompanyderecognisesafinancialasset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receivethecontractualcashflowsonthefinancial asset in a transaction in which substantially all the risks and rewards of ownership of the financialassetaretransferred. 353 • a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and b) Contractual terms of the asset give rise on specifieddatestocashflowsthataresolely payments of principal and interest (SPPI) on the principal amount outstanding. Afterinitialmeasurement,suchfinancialassets 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 incomeinthestatementofprofitandloss.The losses arising from impairment are recognised in thestatementofprofitandloss. Financial assets at fair value through other comprehensive income (FVOCI) AfinancialassetisclassifiedasatFVOCIifboth of the following criteria are met: a) The objective of the business model is achieved both by collecting contractual cash flowsandsellingthefinancialassets,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 profitandloss.Onderecognitionoftheasset, cumulative gain or loss previously recognised inothercomprehensiveincomeisreclassified fromtheequitytostatementofprofitandloss. Interest earned whilst holding fair value through other comprehensive income debt instrument is reported as interest income using the EIR method. For equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by- instrument basis. If the Company 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 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (iii) Impairment of financial assets In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss onthefollowingfinancialassets: a) Financial assets that are debt instruments, and are measured at amortised cost, e.g., loans, debt securities and deposits; b) Financial assets that are debt instruments and are measured as at FVOCI; c) Trade receivables or any contractual right to receivecashoranotherfinancialassetthat result from transactions that are within the scope of Ind AS 115. TheCompanyfollows'simplifiedapproach'for recognition of impairment loss allowance on trade receivables, contract assets and lease receivables. Theapplicationofsimplifiedapproachdoes 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 impairmentlossonotherfinancialassetsand risk exposure, the Company determines whether therehasbeenasignificantincreaseinthecredit risk since initial recognition. If credit risk has not increasedsignificantly,12-monthECLisusedto provide for impairment loss. However, if credit riskhasincreasedsignificantly,lifetimeECLis used. If, in a subsequent period, credit quality of the instrument improves such that there is no longerasignificantincreaseincreditrisksince 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 theexpectedlifeofafinancialinstrument.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. 354 ECL impairment loss allowance (or reversal) recognised during the year is recognized as income/expenseinthestatementofprofitand loss. The balance sheet presentation for various financialinstrumentsisdescribedbelow: a) 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. b) Debt instruments measured at FVOCI: Since financialassetsarealreadyreflectedatfair 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 impairmentloss,theCompanycombinesfinancial instruments on the basis of shared credit risk characteristics with the objective of facilitating ananalysisthatisdesignedtoenablesignificant increasesincreditrisktobeidentifiedonatimely basis. The Company does not have any purchased or originatedcredit-impaired(POCI)financialassets, i.e.,financialassetswhicharecreditimpairedon purchase/ origination. (iv) Financial liabilities – Recognition and Subsequent measurement Financialliabilitiesareclassified,atinitial recognition,asfinancialliabilitiesatfairvalue throughprofitorloss,orasloans,borrowingsand payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Allfinancialliabilitiesarerecognisedinitiallyat fairvalueand,inthecaseoffinancialliabilities at amortised cost, net of directly attributable transaction costs. TheCompany’sfinancialliabilitiesinclude trade and other payables, loans and borrowings includingbankoverdrafts,financialguarantee contractsandderivativefinancialinstruments. Themeasurementoffinancialliabilitiesdepends ontheirclassification,asdescribedbelow: VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS EIR.TheEIRamortisationisincludedasfinance costsinthestatementofprofitandloss. (v) Financial liabilities - Derecognition Afinancialliabilityisderecognisedwhenthe obligation under the liability is discharged or cancelledorexpires.Whenanexistingfinancial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified,suchanexchangeormodification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognisedinthestatementofprofitandloss. (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 requiredbythecontracttobemodifiedaccording toaspecifiedinterestrate,financialinstrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of anon-financialvariablethatthevariableisnot specifictoapartytothecontract.Reassessment only occurs if there is either a change in the terms ofthecontractthatsignificantlymodifiesthe cash flows that would otherwise be required or a reclassificationofafinancialassetoutofthefair valuethroughprofitorloss. If the hybrid contract contains a host that is a financialassetwithinthescopeofIndAS109, the Company does not separate embedded derivatives.Rather,itappliestheclassification 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 fairvaluethoughprofitorloss.Theseembedded derivatives are measured at fair value with changes in fair value recognised in the statement ofprofitandloss,unlessdesignatedaseffective hedging instruments. 355 • Financial liabilities at fair value through profit or loss Financialliabilitiesatfairvaluethroughprofitor lossincludefinancialliabilitiesheldfortrading andfinancialliabilitiesdesignateduponinitial recognitionasatfairvaluethroughprofitor loss.Financialliabilitiesareclassifiedasheld for trading if they are incurred for the purpose of repurchasing in the near term. This category also includesderivativefinancialinstrumentsentered into by the Company that are not designated as hedging instruments in hedge relationships asdefinedbyIndAS109.Separatedembedded derivativesarealsoclassifiedasheldfor trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognisedinthestatementofprofitandloss. Financial liabilities designated upon initial recognitionatfairvaluethroughprofitorloss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 aresatisfied.ForliabilitiesdesignatedasFVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred tostatementofprofitandloss.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 profitandloss.TheCompanyhasnotdesignated anyfinancialliabilityatfairvaluethroughprofit or loss. Further, the provisionally priced trade payables are marked to market using the relevant forward pricesforthefutureperiodspecifiedinthe contract and is adjusted in costs. • Financial liabilities at amortised cost (Loans, Borrowings and Trade and Other payables) After initial recognition, interest-bearing loans, borrowings and trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised inthestatementofprofitandlosswhenthe 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 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (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. The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution with respect to interim dividend is authorised when it is approved by the board of directors of the Companyandfinaldividendisauthorisedwhenit is approved by the shareholders. A corresponding amount is recognised directly in equity. (viii) Offsetting of financial instruments Financialassetsandfinancialliabilitiesareoffset 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 otherderivativefinancialinstruments.TheCompany doesnotholdderivativefinancialinstrumentsfor speculative purposes. Suchderivativefinancialinstrumentsareinitially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives arecarriedasfinancialassetswhenthefairvalueis positiveandasfinancialliabilitieswhenthefairvalue is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to the statementofprofitandloss,exceptfortheeffective portion of cash flow hedges, which is recognised in OCIandlaterreclassifiedtothestatementofprofit andlosswhenthehedgeitemaffectsprofitorloss or treated as basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financialassetornon-financialliability. 356 For the purpose of hedge accounting, hedges are classifiedas: • Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liabilityoranunrecognisedfirmcommitment; • 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 firmcommitment; • 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 thefinancialreportingperiodsforwhichtheywere designated. Hedges that meet the strict criteria for hedge accounting are accounted for, as described below: i) Fair value hedges Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognisedinthestatementofprofitandloss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Whenanunrecognisedfirmcommitmentis designated as a hedged item, the subsequent cumulativechangeinthefairvalueofthefirm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the statementofprofitandloss.Hedgeaccounting is discontinued when the Company revokes the hedge relationship, the hedging instrument or VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 statementofprofitandloss. Leasesareclassifiedasfinanceleaseswhen substantially all of the risks and rewards of ownership transfer from the Company to the lessee.Amountsduefromlesseesunderfinance 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. Amounts recognised in OCI are transferred tothestatementofprofitandlosswhenthe hedgedtransactionaffectsprofitorloss,such aswhenthehedgedfinancialincomeorfinancial expense is recognised or when a forecast sale occurs. When the hedged item is the cost of a non-financialassetornon-financialliability,the amounts recognised in OCI are transferred to the initialcarryingamountofthenon-financialasset 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 theforeigncurrencyfirmcommitmentismet. (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 righttocontroltheuseofanidentifiedassetfora 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 ownershipofanassetareclassifiedasoperating 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. (b) 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. (i) Right-of-use assets 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. Theleasepaymentsincludefixedpayments (and, in some instances, in-substance fixedpayments)lessanyleaseincentives 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 357 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 remeasuredifthereisamodification,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 disclosed on the face of Balance sheet. (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 toleasesofofficeequipmentthatare 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. (J) Inventories 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 costonafirst-in,first-out("FIFO")basis;allother materials including stores and spares are valued 358 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. Inventories of 'Fuel Stock' mainly consist of coal which is used for generating power. On consumption, the cost is charged off to 'Power and Fuel' charges in the statementofprofitandloss. (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 statementofprofitandlossovertheperiodsnecessary 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 valueamountsandreleasedtoprofitorlossoverthe expected useful life in a pattern of consumption of the benefitoftheunderlyingasset. 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 applicabletofinancialliabilities. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (L) Taxation Tax expense represents the sum of current tax and deferred tax. either most likely method or expected value method, depending on which method predicts better resolution of the treatment. 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 amountsforfinancialreportingpurposesandoncarry 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 profitnortaxableprofit(taxloss);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 the statement of profitandlossisrecognisedoutsidethestatementof profitandloss(eitherinothercomprehensiveincome 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 probablethatsufficienttaxableprofitwillbeavailable 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 (M) Retirement benefit schemes The Company operates or participates in a number of definedbenefitsanddefinedcontributionschemes,the assets of which (where funded) are held in separately administeredfunds.Fordefinedbenefitschemes, thecostofprovidingbenefitsundertheplansis determined by actuarial valuation each year separately for each plan using the projected unit credit method by thirdpartyqualifiedactuaries. Remeasurement including, effects of asset ceiling and return on plan assets (excluding amounts included ininterestonthenetdefinedbenefitliability)and actuarial gains and losses arising in the year are recognised in full in other comprehensive income and arenotrecycledtothestatementofprofitandloss. Pastservicecostsarerecognisedinprofitorlosson 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 ratetothenetdefinedbenefitliabilityorassetatthe beginningoftheperiod.Definedbenefitcostsaresplit 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 withinemployeebenefitexpense.Netinterestexpense orincomeisrecognizedwithinfinancecosts. Fordefinedcontributionschemes,theamountcharged tothestatementofprofitandlossinrespectof pensioncostsandotherpostretirementbenefitsisthe 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 359 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 benefitsexpense.Thefairvalueisexpensedover 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 moneyand,whereappropriate,therisksspecificto the liability. Unwinding of the discount is recognized inthestatementofprofitandlossasafinancecost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate. 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 thefinancialstatementswhenaninflowofeconomic benefitisprobable. TheCompanyhassignificantcapitalcommitments 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 productionofamineoroilfields.Suchcosts, 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 statement ofprofitandlossoverthelifeoftheoperationthrough 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 isshownasfinancecostinthestatementofprofit 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 valueandchargedtothestatementofprofitandloss as extraction progresses. Where the costs of site restoration are not anticipated to be material, they are expensed as incurred. A contingent liability is a possible obligation that arises from past events whose existence will be confirmedbytheoccurrenceornon-occurrenceofone 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 (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 360 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS inwhichitoperates.Thefinancialstatementsare presented in Indian rupee (`). asset are amortised over the remaining useful lives of the assets. InthefinancialstatementsoftheCompany, 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 ofprofitandlossexceptthosewherethemonetary 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. Thestatementofprofitandlossofoilandgasbusiness 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 tothestatementofprofitandlossasandwhenthese 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 firsttimeadoptercancontinueitsIndianGAAPpolicy for accounting for exchange differences arising from translation of long-term foreign currency monetary itemsrecognisedintheIndianGAAPfinancial statements for the period ending immediately before thebeginningofthefirstIndASfinancialreporting 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 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 statementofprofitandloss. (R) Earnings per share The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculatedbydividingtheprofitorlossattributableto equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting theprofitorlossattributabletoequityshareholders 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 banksandfinancialinstitutionsmakedirectpayments to suppliers for raw materials and project materials. Thebanksandfinancialinstitutionsaresubsequently repaid by the Company at a later date providing workingcapitaltimingbenefits.Thesearenormally settled between twelve months (for raw materials) to thirty-six months (for project 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. Where these arrangements are with a maturity beyond twelve months and up to thirty six months, the economic substance of the transaction is determined tobefinancinginnature,andthesearepresented within borrowings in the balance sheet. Interest expenseonthesearerecognisedinthefinancecost. Paymentsmadebybanksandfinancialinstitutionsto the operating vendors are treated as a non cash item and settlement of due to operational buyer’s credit/ suppliers’ credit by the Company is treated as an operating cash outflow reflecting the substance of the payment. (T) Current and non-current classification The Company presents assets and liabilities in the balance sheet based on current / non-current classification. 361 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Anassetisclassifiedascurrentwhenitsatisfiesany 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 twelve 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 twelve months after the reporting date. Allotherassetsareclassifiedasnon-current. Aliabilityisclassifiedascurrentwhenitsatisfiesany 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 twelve months after the reporting date; or – the Company does not have an unconditional right to defer settlement of the liability for at least twelve 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 donotaffectitsclassification. Allotherliabilitiesareclassifiedasnon-current. Deferredtaxassetsandliabilitiesareclassifiedasnon current only. (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. Wherefundsareborrowedspecificallytofinancea qualifying capital project, the amount capitalised represents the actual borrowing costs incurred. Where surplus funds are available out of money borrowed 362 specificallytofinanceaqualifyingcapitalproject,the income generated from such short-term investments is deducted from the total capitalized borrowing cost.Ifanyspecificborrowingremainsoutstanding after the related asset is ready for its intended use or sale, that borrowing then becomes part of general borrowing.Wherethefundsusedtofinancea 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 statementofprofitandlossintheyearinwhichthey 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 lifeofthefinancialliabilityorashorterperiod,where appropriate,totheamortisedcostofafinancial liability. When calculating the effective interest rate, the Company estimates the expected cash flows by consideringallthecontractualtermsofthefinancial 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 insignificantriskofchangesinvalue. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,asdefinedabove. (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 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS returns through its power over the investee. Power is demonstrated through existing rights that give the abilitytodirectrelevantactivities,whichsignificantly affect the entity returns. An associate is an entity overwhichtheCompanyhassignificantinfluence. Significantinfluenceisthepowertoparticipatein thefinancialandoperatingpolicydecisionsofthe 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 classifiedaseitherjointoperationsorjointventure. Theclassificationdependsonthecontractualrights 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. Thesehavebeenincludedinthefinancialstatements under the appropriate headings. (X) Common Control transactions 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 consolidatedfinancialstatementswiththeexception 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 recognized from the moment the acquired companies areincludedinthesefinancialstatementsandthe financialstatementsofthecommonlycontrolledentities are 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 financialinformationallowsanunderstandingofthe 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. 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 entitiesundercommoncontrolarespecificallycovered 3(b) Application of new and amended standards (A) The Company has adopted, with effect from 01 April 2022, the following new and revised standards and interpretations. Their adoption has nothadanysignificantimpactontheamounts reportedinthefinancialstatements. 363 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 1. Amendment to Ind AS 37 regarding costs that an entity needs to include when assessing whether a contract is onerous or loss-making. 2. Amendment to Ind AS 109 Financial Instrument regarding inclusion of fees in the ’10 per cent’ test for derecognition of financialliabilities. 3. Amendment to Ind AS 103 Business Combination, Reference to the Conceptual Framework for Financial Reporting. (B) Standards notified but not yet effective TheMinistryofCorporateAffairshasnotified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023, effective from 01 April 2023, resulting in certain amendments as mentioned below: 1. 2. 3. IndAS1Presentationoffinancial statements: The amendment requires disclosure of material accounting policies ratherthansignificantaccountingpolicies; Ind AS 12 Income Taxes: The amendment clarifiesapplicationofinitialrecognition exemption to transactions such as leases and decommissioning obligations; Ind AS 8 Accounting Policies, Change in Accounting Estimates and Errors: The amendmentreplacesdefinitionof‘changein accountingestimates’withthedefinitionof ‘accounting estimates’ These amendments are not expected to have anyimpactinthefinancialstatementsofthe Company. 3(c) Significant accounting estimates and judgements Thepreparationoffinancialstatementsinconformity 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 dateofthesefinancialstatementsandthereported amounts of revenues and expenses for the years presented. These judgments and estimates are based on management’s best knowledge of the relevant 364 facts and circumstances, having regard to previous experience, but actual results may differ materially fromtheamountsincludedinthefinancialstatements. 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. Theinformationaboutsignificantareasofestimation uncertainty and critical judgements in applying accountingpoliciesthathavethemostsignificant effectontheamountsrecognisedinthefinancial statements are as given below: (A) Significant Estimates (i) 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 for exploration and evaluation assets represent active exploration projects. These amounts will bewrittenofftothestatementofprofitandloss 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. (ii) Recoverability of deferred tax and other income tax assets The Company has carry forward tax losses, unabsorbed depreciation and MAT credit that are availableforoffsetagainstfuturetaxableprofit. Deferred tax assets are recognised only to the extentthatitisprobablethattaxableprofitwill 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 therewillbesufficienttaxableprofitsavailable to offset the assets. This requires assumptions regardingfutureprofitability,whichisinherently VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 uncertain. To the extent assumptions regarding futureprofitabilitychange,therecanbean increase or decrease in the amounts recognised in respect of deferred tax assets and consequential impactinthestatementofprofitandloss. The total deferred tax assets recognised in these financialstatements(Refernote35)includes MAT credit entitlements of ` 9,184 Crore (31 March 2022: ` 4,839 Crore), of which ` 2,689 Crore (31 March 2022: ` 208 Crore) is expected to be utilisedinthefourteenthandfifteenthyear,the maximum permissible time period to utilise the MAT credits. (iii) Copper operations in Tamil Nadu, India Tamil Nadu Pollution Control Board (“TNPCB”) had issued a closure order of the Tuticorin Copper smelter, against which the Company had filedanappealwiththeNationalGreenTribunal (“NGT”). NGT had, on 08 August 2013, ruled that the Copper smelter could continue its operations subject to implementation of recommendations of the Expert Committee appointed by the NGT. The TNPCBhasfiledanappealagainsttheorderof the NGT before the Supreme Court of India. In the meanwhile, the application for renewal of Consent to Operate ("CTO") for existing copper smelter was rejected by TNPCB in April 2018. The CompanyhasfiledanappealbeforetheTNPCB Appellate Authority challenging the Rejection Order. During the pendency of the appeal, the 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 on the same date 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 FactoryLicenseandtheRegistrationCertificate for the existing smelter plant. The Company appealed this before the 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 authorization to handle hazardous substances, subject to appropriate conditions for protection of environment in accordance with law. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 theCompanytofileanappealinHighcourt. TheCompanyhasfiledawritpetitionbefore the Madras High Court challenging the various orders passed against the Company in FY 2018 and FY 2013. On 18 August 2020, the Madras High Court delivered the judgement wherein itdismissedalltheWritPetitionsfiledby the Company. Thereafter, the Company has approached the Supreme Court and challenged the said High Court order by way of a Special Leave Petition ("SLP"). TheInterlocutoryApplicationsfiledbythe Company seeking essential care and maintenance of the plant and removal of materials from the plant premises were heard on 10 April 2023 where the Supreme Court allowed certain activities such as gypsum evacuation, operation of secured landfill("SLF")leachatesumppump,bund rectificationofSLFandgreen-beltmaintenance. On 04 May 2023, Honourable Supreme Court further directed the State of Tamil Nadu to conclude on any further supplementary directions to be issued with regard to the care and maintenance of the plant by 01 June 2023. The SLPisnowlistedforhearingandfinaldisposalat the top of the TNPCB on 22 August 2023 and 23 August 2023. 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 thesefinancialstatementsasaconsequenceof above actions. The Company has carried out an impairment analysis for existing plant assets during the year ended 31 March 2023 considering various scenarios and possibilities, and concluded on balance of probabilities that there exists no impairment. 365 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 The carrying value of the assets as at 31 March 2023 is ` 1,913 Crore (31 March 2022: `1,982 Crore). Expansion Project: Separately,theCompanyhasfiledafresh application for renewal of the Environmental Clearance for the proposed Copper Smelter Plant 2 ("Expansion Project") dated 12 March 2018 before the Expert Appraisal Committee of the Ministry of Environment, Forests and Climate Change ("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 Madras High Court 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 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 also appealed this action before the TNPCB Appellate Authority. The matter has been adjourned until the conclusion of special leavepetitionfiledbeforetheSupremeCourt. 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 appealed this action before the TNPCB Appellate Authority. The matter has been adjourned until the conclusion of special leave petitionfiledbeforetheSupremeCourt. 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. The net carrying value of ` 17 Crore as at 31 March 2023 (31 March 2022: ` 41 Crore) approximates its recoverable value. 366 Property, plant and equipment of ` 1,033 Crore (31 March 2022: ` 1,213 Crore) and inventories of ` 269 Crore (31 March 2022: ` 301 Crore), pertaining to existing and expansion plant, could notbephysicallyverified,anytimeduringtheyear, as the access to the plant is presently restricted. However, any difference between book and physical quantities is unlikely to be material. (iv) Oil and Gas reserves Significanttechnicalandcommercialjudgements 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 at least 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 5). (v) 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 are identifiedinaccordancewithIndAS36. The impairment assessments are based on a range of estimates and assumptions, including: Estimates/ assumptions Basis Future production Commodity prices Discount to price Period 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 management’s best estimate based on historical prevailing discount and updated sales contracts for Rajasthan block, cash flows are considered based on economic life of thefield Discount rates cost of capital risk-adjusted for the risk specifictotheasset/CGU VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Any subsequent changes to cash flows due to changes in the above mentioned factors could impact the carrying value of the assets. Details of carrying values and impairment charge/ (reversal) and the assumptions used are disclosed in note 5 and 34 respectively. (vi) Climate Change The Company aims to achieve net carbon neutrality by 2050, has committed reduction in emission by 25% by 2030 from 2021 baseline, net water positivity by 2030 as part of its climate risk assessment and has outlined its climate risk assessment and opportunities in the ESG strategy. Climate change may have various impacts on the Company in the medium to long term. These impacts include the risks and opportunities related to the demand of products and services, impact due to transition to a low-carbon economy, disruption to the supply chain, risk of physical harm to the assets due to extreme weather conditions, regulatory changes etc. The accounting related measurement and disclosure items that are most impacted by our commitments, and climate change risk more generally,relatetothoseareasofthefinancial statements that are prepared under the historical cost convention and are subject to estimation uncertainties in the medium to long term. The potential effects of climate change may be on assets and liabilities that are measured based on an estimate of future cash flows. The main ways in which potential climate change impacts have beenconsideredinthepreparationofthefinancial statements, pertain to (a) inclusion of capex in cash flow projections, (b) review of estimates of useful lives of property, plant and equipment, (c) recoverableamountsofexistingassets, (d) assetsandliabilitiescarriedatfairvalue. The Company's strategy consists of mitigation and adaptation measures. The Company is committed to reduce its carbon footprint by limiting its exposure to coal-based projects and reducing its GHG emissions through high impact initiatives such as investment in Renewable Energy (1,826 MW on a group captive basis), fuel switch,electrificationofvehiclesandminingfleet andenergyefficiencyopportunities.Renewable sources have limitations in supplying round the clock power, so existing power plants would support transition and fleet replacement is part of normal lifecycle renewal. The Company has also taken certain measures towards water management such as commissioning of sewage treatment plants, rainwater harvesting, and reducing fresh water consumption. These initiatives are aligned with the group's ESG strategyandnomaterialchangeswereidentified tothefinancialstatementsasaresult. As the Company’s assessment of the potential impacts of climate change and the transition to a low-carbon economy continues to mature, any future changes in the Company's climate change strategy, changes in environmental laws and regulations and global decarbonisation measuresmayimpacttheGroup'ssignificant judgments and key estimates and result in changestofinancialstatementsandcarrying values of certain assets and liabilities in future reporting periods. However, as of the balance sheet date, the Group believes that there is no material impact on carrying values of its assets or liabilities. (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 theoutcomecannotbereliablyquantifiedoris 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 financialstatements. Whenconsideringtheclassificationoflegal 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 interpretationofcountryspecificapplicable law, in particular India, and the likelihood of settlement. Management uses in-house and external legal professionals to make informed decision. 367 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Although there can be no assurance regarding thefinaloutcomeofthelegalproceedings, the Company does not expect them to have a materially adverse impact on the Company’s financialpositionorprofitability.Thesearesetout in Note 38. Forothersignificantlitigationswherethe possibility of an outflow of resources embodying economicbenefitsisremote,refernote44. (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 PowerPurchaseAgreements("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 that the credit risk is low [refer note 7 (c)]. 3(d) Business combinations/ Acquisitions/ Restructuring: Athena Chhattisgarh Power Limited On 21 July 2022, the Company acquired Athena Chhattisgarh Power Limited ("ACPL"), an unrelated party, under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016 for a consideration of ` 565 Crore, subject to National Company Law Tribunal (“NCLT”) approval. ACPL is building a 1,200 MW (600 MW X 2) coal-based power plant located at Jhanjgir Champa district, Chhattisgarh.Theplantisexpectedtofulfilthepower requirements for the Company’s aluminium business. TheCompanyhadfileditsapplicationwiththeNCLT in July 2022 and further amended the application in November 2022 praying for merger of ACPL with itself. The Company has requested various reliefs from the applicable legal and regulatory provisions as part of the above applications. The NCLT approval of the Company’s resolution application is pending as on the balance sheet date. Amalgamation of Facor Power Limited into Ferro Alloys Corporation Limited During the current year, Hon’ble National Company Law Tribunal, Cuttack Bench vide its Order dated 15 November 2022 approved the Scheme of Amalgamation of Facor Power Limited (“FPL”) into Ferro Alloys Corporation Limited (“FACOR”). FPL is a subsidiary of FACOR which in turn is a subsidiary of the Company. Post the amalgamation becoming effective on 21 November 2022, the Company directly holds 99.99% in FACOR. 368 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 4 Segment Information A) Description of segment and principal activities TheCompanyisadiversifiednaturalresourcecompanyengagedinexploring,extractingandprocessingminerals andoilandgas.TheCompanyproducesoilandgas,aluminium,copper,ironoreandpower.TheCompanyhasfive 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 revenuesfromthesemainproductsandhencethesehavebeenidentifiedasreportablesegmentsbytheCompany’s Chief Operating Decision Maker (“CODM”). SegmentRevenue,Results,AssetsandLiabilitiesincludetherespectiveamountsidentifiabletoeachofthesegments 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 oftheCompanyforwhichseparatefinancialinformationisavailable.TheCompany’sfinancing(includingfinancecosts andfinanceincome)andincometaxesarereviewedonanoverallbasisandarenotallocatedtooperatingsegments. Pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. Thefollowingtablepresentsrevenueandprofitinformationandcertainassetsandliabilitiesinformationregardingthe Company’s business segments as at and for the year ended 31 March 2023 and 31 March 2022 respectively. For the year ended 31 March 2023 Particulars Revenue External revenue Inter segment revenue Segment revenue Results Segment Results (EBIDTA) a Less: Depreciation, depletion and amortisation expense Add: Other income, net of expenses b,c Add: Other unallocable income, net of expenses Less: Finance costs Add: Net exceptional gain Net profit before tax Other information Segment Assets Financial asset investments Deferred tax assets (net) Income tax assets (net of provisions) Cash and cash equivalents (including other bank balances and bank deposits) Oil and Gas Aluminium Copper Iron Ore Power Eliminations Total Business Segments (` in Crore) 8,137 39,950 12,351 5,928 - - - - 8,137 39,950 12,351 5,928 4,221 1,491 5,160 1,751 (9) 176 930 114 827 - 827 (297) 129 (315) 61 2 7 11 - - - - - - 16,785 50,312 4,500 3,998 2,647 67,193 - 67,193 10,005 3,661 (234) 20,931 4,384 4,353 27,010 78,242 64,845 5,295 1,501 5,986 369 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Particulars Others Total Assets Oil and Gas Aluminium Copper Iron Ore Power Eliminations Business Segments Segment Liabilities 10,645 21,579 4,753 2,064 241 Borrowings Income tax liabilities (net) Others Total Liabilities Capital Expenditure d Net impairment reversal relating to assets e 2,436 4,541 18 - 87 - 225 - - - - (` in Crore) Total 2,914 1,58,783 39,282 42,023 1,025 8,641 90,971 7,311 5,525 a) EBITDA is a non-GAAP measure. b) Oherincomeincludesamortisationofdutybenefitsrelatingtoassetsrecognisedasgovernmentgrant. c) Includes cost of exploration wells written off. d) Total capital expenditure includes capital expenditure of ` 22 Crore not allocable to any segment. e) Total net impairment reversal includes impairment reversal on investments of ` 5,507 Crore, which is not allocable to any segment (Refer Note 34). Business Segments (` in Crore) Oil and Gas Aluminium Copper Iron Ore Power Eliminations Total For the year ended 31 March 2022 Particulars Revenue External revenue Inter segment revenue Segment revenue Results 6,622 38,371 11,096 6,143 - - - - 6,622 38,371 11,096 6,143 569 218 787 (172) 129 Segment Results (EBIDTA) a 3,137 13,024 (150) 2,187 Less: Depreciation, depletion and amortisation expense 936 1,591 188 101 Add: Other income b - 58 2 7 11 Add: Other unallocable income, net of expenses Less: Finance costs Less: Net exceptional loss Net profit before tax Other information Segment Assets Financial asset investments Deferred tax asset Income tax assets (net of provisions) Cash and cash equivalents (including other bank balances and bank deposits) Others Total Assets 370 16,420 47,307 5,383 3,590 2,826 - 62,801 (218) (218) - 62,801 - - - 18,026 2,945 78 7,921 3,146 318 19,616 75,526 61,466 1,118 1,800 7,209 1,622 1,48,741 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Particulars Segment Liabilities Borrowings Income tax liabilities (net) Others Total Liabilities Capital Expenditure c Net (Impairment)/ reversal or write off/ (write back) relating to assets d a) EBITDA is a non-GAAP measure. Business Segments (` in Crore) Oil and Gas Aluminium Copper Iron Ore Power Eliminations Total 10,178 15,630 4,638 2,321 152 1,378 (42) 2,731 (125) 4 - 80 - - - 32,919 36,696 601 876 71,092 4,213 (191) b) Amortisationofdutybenefitsrelatingtoassetsrecognisedasgovernmentgrant. c) Total capital expenditure includes capital expenditure of ` 20 Crore not allocable to any segment. d) Includes write off of ` 24 Crore which is not allocable to any segment. 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 Segment Revenue by geographical segment India Europe Mexico The United States of America China Others Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 33,714 11,631 3,817 3,426 2,535 12,070 67,193 28,142 14,847 2,089 3,231 5,055 9,437 62,801 Thefollowingisananalysisofthecarryingamountofnon-currentassets,excludingdeferredtaxassetsandfinancial assets, analysed by the geographical area in which the assets are located: Carrying Amount of Segment Assets India Total C) Information about major customers (` in Crore) As at 31 March 2023 As at 31 March 2022 56,863 56,863 54,244 54,244 No single customer has accounted for more than 10% of the Company’s revenue for the year ended 31 March 2023 and 31 March 2022. 371 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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* (Loss)/ Gain from provisionally priced contracts under Ind AS 109 Total Revenue (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 6,718 1,546 39,189 11,950 2,212 447 3,198 827 1,691 67,778 (585) 67,193 5,480 892 37,696 10,267 2,354 314 3,348 570 1,860 62,781 20 62,801 *includes revenues from sale of services aggregating to ` 88 Crore (31 March 2022: ` 109 Crore) which is recorded over a period of time and the balance revenue is recognised at a point in time. 372 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 4 5 9 2 , 9 3 1 2 8 , ) 1 0 3 ( ) 6 4 3 1 ( , - 4 0 2 2 , 0 5 6 5 8 , 4 8 6 3 , ) 8 1 ( ) 5 6 4 ( - 6 9 2 6 , 7 4 1 5 9 , 3 2 9 8 4 , 4 0 2 0 5 , 2 7 6 2 5 , ) 4 ( ) 4 1 4 ( 4 0 2 4 , ) 2 1 4 1 ( , 8 1 4 2 , , 4 5 8 5 3 1 , ) 4 ( 8 6 5 6 , ) 1 6 0 1 ( , ) 5 1 3 ( 7 7 7 6 , , 9 1 8 7 4 1 , , 2 6 0 1 3 1 , - - 3 3 8 4 4 1 3 , ) 2 1 4 1 ( , 9 8 4 5 6 2 , 0 9 0 1 , - - ) 5 1 3 ( 8 4 2 7 7 6 3 , ) 1 ( - 7 5 2 2 , 6 9 8 4 2 , ) 8 5 6 2 ( , 0 0 5 4 9 9 4 2 , 2 3 8 3 , ) 2 2 9 2 ( , - - 9 5 9 3 6 8 6 2 , , 2 2 0 3 0 1 , 4 1 1 1 , 4 5 6 2 , ) 3 1 4 ( - 9 2 8 1 , 6 4 6 1 , 8 1 9 2 , ) 1 6 0 1 ( , - 0 7 5 5 , , 6 0 2 8 0 1 , , 9 7 2 7 1 1 , - - ) 5 1 4 ( - 2 4 - 9 2 4 2 ) 6 2 5 ( 1 4 4 9 3 5 1 , 0 0 8 5 1 , - - 5 0 3 - 2 1 1 - - - ) 3 3 2 ( 8 3 2 1 , 6 6 1 1 , 8 6 7 5 1 , ) 0 3 3 ( ) 5 5 9 ( 4 5 9 2 , 0 0 8 4 6 , 6 2 5 1 2 7 1 , 4 8 6 3 , 6 1 7 8 6 , ) 5 6 4 ( ) 3 2 3 ( 3 3 2 6 4 9 4 , 2 1 7 6 6 ) 6 4 3 ( ) 8 ( - 7 0 5 2 3 3 - - - 3 5 8 3 ) 8 ( 9 1 - 9 4 1 ) 1 8 ( 2 1 8 8 1 - - - 2 3 8 5 1 , 3 7 7 6 1 , 1 9 7 6 7 , 1 0 1 5 0 6 1 , 8 8 4 1 , 4 9 0 2 , 6 9 0 9 , 6 2 2 9 , 0 9 0 0 1 , 2 2 2 8 3 , 0 9 4 9 3 , 8 8 4 0 4 , 8 1 5 1 5 2 4 8 2 3 4 4 3 1 3 1 2 2 6 6 1 8 4 , 7 9 2 5 4 , 4 7 0 7 , 1 4 8 2 5 2 ) 3 ( - 8 5 7 4 ) 2 ( 0 5 ) 6 6 ( - ) 7 ( 0 5 4 ) 3 ( 9 2 4 0 4 - - 8 6 3 8 3 4 ) 4 6 ( - ) 3 ( ) 6 ( 1 0 4 9 3 7 3 9 4 2 0 1 ) 3 ( - - 2 2 3 1 1 1 ) 5 ( - - 9 2 3 ) 2 ( 4 2 3 1 1 - - - ) 3 ( 5 2 5 3 1 - - - 7 5 1 0 0 2 7 8 1 2 7 1 4 9 ) 1 ( - 4 4 4 7 3 2 - ) 3 ( ) 1 5 ( 1 9 1 2 1 2 5 1 - - - 3 1 1 7 6 1 ) 0 5 ( - 3 ) 7 ( 4 2 1 9 6 0 7 7 6 - - 2 3 1 2 3 3 2 1 5 1 , 2 4 1 0 5 , - - ) 6 5 1 ( 3 1 4 1 , 0 1 6 4 , 9 0 0 6 5 , - 6 3 5 ) 5 5 9 ( 5 8 6 6 4 , 7 1 1 4 5 4 1 , 7 3 8 7 4 , - 8 5 9 ) 3 0 1 ( 7 5 1 6 8 1 4 , 2 8 4 1 , 1 7 3 1 , ) 0 8 7 ( - 7 2 8 5 0 5 1 5 , - ) 6 1 3 ( 9 3 1 2 , 1 8 1 4 1 , 0 9 4 2 1 2 1 6 3 2 , 6 0 7 6 1 , ) 6 4 3 ( ) 0 2 2 ( 6 7 6 4 6 5 3 0 3 5 , 3 2 2 9 1 , 1 8 4 1 , 5 0 3 2 , 4 7 9 2 , 6 1 1 1 3 , 9 9 8 1 3 , 2 8 2 2 3 , ) 3 ( - 6 3 9 2 1 5 2 1 1 2 5 7 , 0 9 1 0 7 9 2 , ) 1 ( - - 8 3 3 1 1 ) 1 ( - 5 3 1 9 5 8 2 - - 5 1 9 8 8 6 4 1 5 - - - 4 7 9 1 3 , 5 5 1 ) 2 ( 0 7 2 - - 3 1 1 8 7 5 3 , 4 0 1 4 , 7 3 0 4 , 3 4 9 3 , 5 - - - 2 1 2 7 1 5 9 6 4 0 7 7 1 7 3 6 8 4 8 5 2 , ) 2 9 3 ( - 3 5 2 5 6 0 6 ) 5 ( - 0 4 5 0 6 8 4 , 4 3 2 7 , l s t e s s a f o s s a c e v i t c e p s e r o t P W C f o n o i t a s I i l a t i p a c s e d u c n l ) 4 3 e t o n r e f e R ( f f o n e t t i r w s t s o c n o i t a r o p x E l j s t n e m t s u d A / s a s o p s D i l s e c n e r e f f i d e g n a h c x E 2 2 0 2 h c r a M 1 3 t a s A s n o i t i d d A i l * s n o i t a c fi s s a c e R / s r e f s n a r T ) 3 3 e t o n r e f e R ( f f 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 u m u c c A l 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 s e c n e r e f f i d e g n a h c x E 3 2 0 2 h c r a M 1 3 t a s A 1 2 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 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 / f f 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 ) 4 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 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 ) ) g ( e t o N r e f e R ( s e c n e r e f f i d e g n a h c x E 2 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 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 i l * s n o i t a c fi s s a c e R / s r e f s n a r T i l * s n o i t a c fi s s a c e R / s r e f s n a r T 1 2 0 2 l i r p A 1 0 t a s A l k c o B s s o r G s n o i t i d d A t n u o m a g n i y r r a C / e u a V k o o B t e N l s e c n e r e f f i d e g n a h c x E 3 2 0 2 h c r a M 1 3 t a s A 2 2 0 2 h c r a M 1 3 t a s A 3 2 0 2 h c r a M 1 3 t a s A 1 2 0 2 l i r p A 1 0 t a s A i j i y l r o a m n o i t a c fi s s a c e r / s r e f s n a r T * l 373 n o i t a r o p x e l d n a s s e r g o r p n i k r o w l a t i p a c l i e b g n a t n i r e d n u s t e s s a t n e m p o e v e d l i l e b g n a t n i n o i t a r o p x E l r e d n u s t e s s a t n e m p o e v e d l l a t i p a C n i k r o W I ) P W C ( s s e r g o r p l a t o T f o t h g R i s t e s s a e s U e c fi f O ) w o e b l e t o n e e s ( t n e m p u q e i l s e c h e V i d n a s e r u t x fi e r u t i n r u F s a g & l i O i g n c u d o r p s e i t i l i c a f d n a t n a P l t n e m p u q e i s g n d i l i u B d n a L l d o h e e r F i g n d u c n l i l a t o T i t n e m p u q e d n a t n a P l , y t r e p o r P ) e r o r C n i ` ( 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 l n o i t a r o p x E d n a s s e r g o r p - n i - k r o w l a t i p a C , 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 P l , y t r e p o r P s r a l u c i t r a P STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 5 Property, Plant and equipment, Intangible assets, Capital work-in-progress and Exploration intangible assets under development Right of Use (ROU) assets Particulars Gross Block As at 01 April 2021 Additions Transfers/Reclassifications Disposals/ Adjustments Exchange differences As at 31 March 2022 Additions Exchange differences As at 31 March 2023 Accumulated depreciation and impairment As at 01 April 2021 Charge for the year Transfers/Reclassifications Disposals/ Adjustments Exchange differences As at 31 March 2022 Charge for the year Exchange differences As at 31 March 2023 Net Book Value/Carrying amount As at 01 April 2021 As at 31 March 2022 As at 31 March 2023 Intangible Assets Particulars Gross Block As at 01 April 2021 Additions Transfers/Reclassifications Exchange differences As at 31 March 2022 Additions Transfers/Reclassifications Disposals/ Adjustments Exchange differences As at 31 March 2023 374 ROU Land ROU Building ROU Plant and Equipment 284 12 - (8) - 288 50 - 338 54 10 - (8) - 56 10 - 66 230 232 272 42 - - - 1 43 - 3 46 15 9 - - - 24 8 2 34 27 19 12 341 - (346) - 6 1 - - 1 80 - (81) - 2 1 - - 1 261 - - (` in Crore) Total 667 12 (346) (8) 7 332 50 3 385 149 19 (81) (8) 2 81 18 2 101 518 251 284 Software License Mining Rights Total (` in Crore) 298 10 4 7 319 7 4 (154) (66) 110 227 - - - 227 815 - - - 1,042 525 10 4 7 546 822 4 (154) (66) 1,152 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Software License Mining Rights Total (` in Crore) 279 15 7 301 14 (154) (67) 94 19 18 16 219 - - 219 5 - - 224 8 8 818 498 15 7 520 19 (154) (67) 318 27 26 834 (` in Crore) Total 2,360 470 1,131 5,265 9,226 Particulars Accumulated amortisation and impairment As at 01 April 2021 Charge for the year Exchange differences As at 31 March 2022 Charge for the year Disposals/ Adjustments Exchange differences As at 31 March 2023 Net Book Value/Carrying amount As at 01 April 2021 As at 31 March 2022 As at 31 March 2023 Capital Work-In-Progress (CWIP) Ageing Schedule CWIP Less than 1 year 1-2 years 2-3 years More than 3 years Total As at 31 March 2023 As at 31 March 2022 Projects in progress Projects temporarily suspended 3,620 1,167 250 4,399 9,436 3 3 5 643 654 Total 3,623 1,170 255 5,042 10,090 Projects in progress Projects temporarily suspended 2,358 464 1,098 4,645 8,565 2 6 33 620 661 CWIP completion schedule for projects whose completion is overdue or has exceeded its cost compared to its original plan: CWIP Projects in Progress Jharsuguda 1.25 MTPA aluminium smelter Project Lanjigarh alumina 2-5 MTPA expansion Project RDG gas Project Oil & Gas development CWIP Projects temporarily suspended Lanjigarh alumina 5-6 MTPA expansion Project Other iron ore business Projects Copper 4LTPA expansion Project As at 31 March 2023 To be completed in As at 31 March 2022 To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years Less than 1 year 1-2 years 2-3 years More than 3 years (` in Crore) 457 6,666 336 226 - 11 * - 21 - 121 - - * - - - - - - * - - - - 371 - * 545 234 4,146 863 58 1,032 155 286 - 11 * - - * - - - - - - * - - - - 371 - * * Excludes ageing for Copper 4 LTPA Expansion project which is on hold due to restrictions imposed by the State government. Refer Note 3(c)(A)(iii) 375 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Exploration intangible assets under development Ageing Schedule Intangible assets under development Less than 1 year 1-2 years 2-3 years More than 3 years Total Title deeds of immovable properties not held in the name of Company (` in Crore) As at 31 March 2023 Projects in progress As at 31 March 2022 Projects in progress 610 565 535 384 547 533 340 68 2,094 1,488 (` in Crore) Relevant line item in the Balance sheet Description of item of property Gross block as at 31 March 2023 Gross block as at 31 March 2022 Title deeds held in the name of Whether title deed holder is a promoter, director or relative of promoter/ director or employee of promoter/ director Property held since which date Reason for not being held in the name of the company Property, Plant and Equipment Land & Building 1,749 Land ROU Land Land 53 50 20 No 10 April 2009 1,533 Oil and Natural Gas Corporation Limited (ONGC) and Cairn India Limited (now a division of the Company) 53 Erstwhile company No 50 Sterlite Industries (India) Limited, that merged with the Company No 1965-2012* 1993-2009* 20 Erstwhile company Vedanta Aluminium Limited, that merged with the Company No 2008-2012* The title deeds of Oil & Gas exploration blocks jointly owned by the JV partners are in the name of ONGC, being the licensee of these exploration blocks. The title deeds are in the names of erstwhile companies that merged with the Company under Section 391 to 394 of the erstwhile Companies Act, 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honourable High Courts. * Multiple dates of acquisitions during the period disclosed. Notes a) Plantandequipmentincluderefineries,smelters,powerplants,railwaysidings,ships,riverfleetandrelatedfacilities. b) During the year ended 31 March 2023, interest capitalised was ` 331 Crore (31 March 2022: ` 267 Crore). c) Certain property, plant and equipment are pledged as security against borrowings, the details related to which have been described in Note 17 on “Borrowings”. d) InaccordancewiththeexemptiongivenunderIndAS101,whichhasbeenexercisedbytheCompany,afirsttime adopter can continue its previous GAAP policy for accounting for exchange differences arising from translation of long-termforeigncurrencymonetaryitemsrecognisedinthepreviousGAAPfinancialstatementsfortheperiodending immediatelybeforethebeginningofthefirstIndASfinancialreportingperiod,i.e.,01April2016. 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 ` 11 Crore loss (31 March 2022: ` 16 Crore loss) is adjusted to the cost of respective item of property, plant and equipment. 376 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 ` 5,776 Crore (31 March 2022: ` 5,801 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 and other adjustments As per Statement of Profit and Loss (` in crore) For the year ended 31 March 2023 For the year ended 31 March 2022 3,684 19 3,703 (42) 3,661 2,954 15 2,969 (24) 2,945 g) (i) During the year ended 31 March 2023, the Company has recognised a net impairment reversal of ` 323 Crore (after considering impairment reversal of ` 618 Crore on account of ONGC partial arbitration award (Refer note (ii) for details)) on its assets in the oil and gas producing facilities and impairment charge of ` 305 Crore on its assets in the oil and gas exploration intangible assets under development mainly due to revision of Reserve and Capex estimates. The recoverable amount of the Company’s share in Rajasthan Oil and Gas cash generating unit “RJ CGU” was determined to be ` 5,324 Crore (US$ 648 million) as at 31 March 2023. The recoverable amount of the RJ CGU 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 the Company’s view of the assumptions that would be used by a market participant. This is based on the cash flows expected to be generatedbytheprojectedoilandnaturalgasproductionprofilesupto2040,theexpecteddatesofcessation ofproductionsharingcontract("PSC")/cessationofproductionfromeachproducingfieldbasedonthecurrent 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$ 84 per barrel for the next one year and tapers down to long-term nominal price of US$ 73 per barrel three years thereafter derived from a consensus of various analyst recommendations. Thereafter, these have been escalated at a rate of 2.4% per annum. The cash flows are discounted using the post-tax nominal discount rate of 10.99% derived from the post-tax weighted average cost of capital after factoring in the risks ascribed to PSC extension including successful implementation of key growth projects. 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 ` 41 Crore (US$5 million) and ` 205 Crore (US$ 25 million) respectively. (ii) In the Oil and Gas business, the Company operates the Rajasthan Block under a joint venture model with ONGC. As the operator of the block, the Company raises cash calls to ensure the smooth functioning of the petroleum operations. During the current year ended 31 March 2023, the Company received a favourable partial arbitration award on cash call claims made from ONGC, pursuant to which, reversal of previously recorded impairment of `618 Crore (US$ 78 million) has been recognised against capitalised development costs. The Company had a liability towards ONGC of ` 750 Crore (US$ 99 million) as of 31 March 2022 on account of revenue received in excess of entitlement. Based on the partial arbitration award, the Company has adjusted the claims received in the favour of the Company against the liability towards ONGC and the net payable as of 31 March 2023 amounts to ` 135 Crore (US$16 million). 377 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 6 Financial Assets : Investments A) Non Current Investments Particulars (a) Investment in equity shares - at cost/ deemed costa (fully paid up unless otherwise stated) Subsidiary companies Quoted - Hindustan Zinc Limited, of ` 2/-eachb (Refer Note 17) Unquoted - Bharat Aluminium Company Limited, of ` 10/- each (including 5 shares held jointly with nominees)b Monte Cello BV, The Netherlands, of Euro 453.78 each Less: Reduction pursuant to merger c Cairn India Holdings Limited (CIHL) of GBP 1 each (Refer Note 34) Less: Reduction pursuant to merger c Vizag General Cargo Berth Private Limited, of ` 10 each (including 6 shares held jointly with nominees) Talwandi Sabo Power Limited, of ` 10 each (including 6 shares held jointly with nominees) Sesa Resources Limited, of ` 10 each (including 6 shares held jointly with nominees) Bloom Fountain Limited, of US$ 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 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 (including 6 shares held jointly with nominees) (Refer Note 3(d)) - - - - - - - - - - - 378 As at 31 March 2023 As at 31 March 2022 No. Amount (` in Crore) No. Amount (` in Crore) 2,74,31,54,310 44,398 2,74,31,54,310 44,398 11,25,18,495 553 11,25,18,495 553 40 204 (204) 40 204 - (204) - 31,83,40,911 25,512 42,08,10,062 28,873 (15,067) 10,445 (15,067) 13,806 4,71,08,000 182 4,71,08,000 3,20,66,09,692 3,207 3,20,66,09,692 12,50,000 757 12,50,000 182 3,207 757 2,20,10,00,001 14,734 2,20,10,00,001 14,734 (14,320) 414 (14,320) 414 2,33,66,406 116 2,33,66,406 116 1,00,001 37,38,000 (23) 46 (46) 23 (23) 93 - - 1,00,001 37,38,000 (23) 46 (46) 23 (23) 1,76,55,53,040 1,770 1,76,55,53,040 34,00,00,000 37 34,00,00,000 93 - - 1,770 37 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS As at 31 March 2023 As at 31 March 2022 No. Amount (` in Crore) No. Amount (` in Crore) 14,23,000 1 4,23,000 0 47,64,295 70 47,64,295 19,05,718 2,50,828 11 0 9,52,859 2,50,828 18,59,900 907 18,59,900 3,60,500 215 3,60,500 - - - 55,00,000 2,495 (2,495) 70,00,000 3,187 (3,187) 55,00,000 2,495 (2,495) - - 6,90,00,000 69 - NA 100 NA 0 0 0 NA 100 NA 107 11 0 907 215 - - - 0 0 0 Particulars Associate companies - unquoted - Gaurav Overseas Private Limited, of ` 10 each Investment in equity shares at fair value through other comprehensive income Quoted - Sterlite Technologies Limited, of ` 2 each Unquoted - Sterlite Power Transmission Limited, of ` 2 each - Goa Shipyard Limited of ` 5 each Investment in preference shares of subsidiary companies - at cost 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 (Refer Note 34) 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 Preference shares - Unquoted at fair value through profit and loss - Serentica Renewables Power Companies, Optionally Convertible Redeemable Preference shares of ` 10 each (Refer Note 38 and 39) Investment in Government or Trust securities at cost / amortised cost 7 Years National Savings - Certificates(31March2023: ` 35,450; 31 March 2022: ` 35,450) (Deposit with Sales Tax Authority) UTI Master gain of ` 10 each (31 March 2023: ` 4,072; 31 March 2022: ` 4,072) Vedanta Limited ESOS Trust (31 March 2023: ` 5,000; 31 March 2022: ` 5,000) - - (b) (c) (d) (e) Investments in debentures of subsidiary companies at cost / amortised cost - MALCO Energy Limited, compulsorily convertible debentures of ` 1,000 each Less: Reduction pursuant to merger c 6,13,54,483 6,136 6,13,54,483 6,136 (6,118) 18 (6,118) 18 379 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 As at 31 March 2023 As at 31 March 2022 No. 40 200 230 468 450 500 40 Amount (` in Crore) 0 0 No. 40 200 0 230 0 468 0 450 0 500 0 40 30 (756) (750) (1,799) 59,872 (3,305) 44,468 80,554 15,404 Amount (` in Crore) 0 0 0 0 0 0 0 30 (1,536) (750) (3,339) 60,881 (5,625) 44,505 85,062 16,376 Particulars - - - Investments in Co-operative societies at fair value through profit and loss Sesa Ghor Premises Holders - Maintenance Society Limited, of ` 200 each (31 March 2023: ` 8,000; 31 March 2022: ` 8,000) Sesa Goa Sirsaim Employees Consumers Co- operative Society Limited, of ` 10 each (31 March 2023: ` 2,000; 31 March 2022: ` 2,000) Sesa Goa Sanquelim Employees Consumers Co- operative Society Limited, of ` 10 each (31 March 2023: ` 2,300; 31 March 2022: ` 2,300) Sesa Goa Sonshi Employees Consumers Co- operative Society Limited, of ` 10 each (31 March 2023: ` 4,680; 31 March 2022: ` 4,680) Sesa Goa Codli Employees Consumers Co- operative Society Limited, of ` 10 each (31 March 2023: ` 4,500; 31 March 2022: ` 4,500) Sesa Goa Shipyard Employees Consumers Co-operative Society Limited, of ` 10 each (31 March 2023: ` 5,000; 31 March 2022: ` 5,000) The Mapusa Urban Cooperative Bank Limited, of ` 25 each (31 March 2023: ` 1,000; 31 March 2022: ` 1,000) - - - Investment in Bonds/ Debentures - 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 (Refer Note 34) Sesa Resources Limited Cairn India Holdings Limited (Refer Note 34) Total Aggregate amount of impairment Aggregate amount of quoted investments Market value of quoted investments Aggregate carrying amount of unquoted investments (f) (g) 380 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS a. 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. b. Pursuant to the Government of India’s policy of disinvestment, 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 anadditional20%oftheequitycapitalinHZLthroughanopenoffer.TheCompanyexercisedthefirstcalloptionon 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. 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 shareholdingwhilehearingthepublicinterestpetitionfiled. On 13 August 2020, the Supreme Court passed an order partially removing the status quo order in place and has allowed the arbitration proceedings to continue via its order passed on 18 November 2021, the Supreme Court of India allowed the GOI’s proposal to divest its entire stake in HZL in the open market in accordance with the rules and regulations of SEBI and also directed the Central Bureau of India to register a regular case in relation to the process followed for the disinvestment of HZL in the year 2002 by the GOI. In line with the said order, the Company has withdrawn its arbitration proceedings. 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 02 March 2004. The Company exercised this option on 19 March 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 thearbitrationfiledbytheCompany,thearbitraltribunalbyamajorityawardrejectedtheclaimsoftheCompanyonthe groundsthattheclausesrelatingtothecalloption,therightoffirstrefusal,the“tag-along”rightsandtherestrictionon 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 totheextentthatitholdstheseclausesineffectiveandinoperative.TheGovernmentofIndiaalsofiledanapplication 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 09 January 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,andhencethecalloptionshavenotbeenrecognisedinthefinancialstatements. c. Reduction pursuant to merger of Cairn India Limited with Vedanta Limited accounted for in the year ended 31 March 2017. d. The Company has not recognised any deferred tax asset on impairment of investments, including amount reduced pursuant to merger (refer note c above) as the realisation of the same is not reasonably certain. 381 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 B) Current Investment Particulars (` in Crore) As at 31 March 2023 As at 31 March 2022 Investment in preference shares of subsidiary companies - at cost THL Zinc Ventures Limited, 70,00,000 - 0.25% Optionally Convertible Redeemable Preference shares of US$ 1 each (Refer Note 34) 3,187 - Investments carried at fair value through profit and loss Investment in mutual funds- unquoted Investment in India Grid Trust - quoted Total Aggregate amount of quoted investments, and market value thereof Aggregate amount of unquoted investments 7 Financial assets - Trade receivables 1,786 - 4,973 - 4,973 585 0 585 0 585 (` in Crore) As at 31 March 2023 As at 31 March 2022 Non- current Current Total Non- current Current Total Particulars Secured, Undisputed Unbilled dues Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years sub-total Unsecured, disputed Unbilled dues Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years sub-total Unsecured, Undisputed Unbilled dues Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years sub-total - - - - - - - - - - 58 78 190 106 1,754 2,186 - - - - - - - - - 143 162 6 - - 3 - 143 162 6 - - 3 314 314 - - 14 - - - 6 20 98 472 672 120 10 - 5 1,377 (17) - - 72 78 190 106 1,760 2,206 98 472 672 120 10 - 5 1,377 (1,356) 2,541 - - - - - - - - 9 - 123 67 106 153 1,601 2,059 - - - - - - - - (984) 1,075 - 121 53 - 0 - 3 - 121 53 - 0 - 3 177 177 - - - - - - 8 8 - 571 1,560 17 3 - 9 2,160 (17) 2,328 9 - 123 67 106 153 1,609 2,067 - 571 1,560 17 3 - 9 2,160 (1,001) 3,403 Less: Provision for expected credit loss (1,339) Total 382 847 1,694 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (a) The credit period given to customers ranges from zero to 90 days. Also refer note 22(C)(d). (b) For amounts due and terms and conditions relating to related party receivables, see note 39. (c) Trade receivables includes ` 878 Crore (net of Provision for expected credit loss ("ECL") of ` 157 Crore recognised during the year on account of time value of money) as at 31 March 2023 (31 March 2022: ` 1,097 Crore) withheld by GRIDCO Limited ("GRIDCO") primarily on account of reconciliation and disputes relating to computation of power tariffs and alleged short-supply of power by the Company under the terms of long term power supply agreement. Out of the above, ` 374 Crore (net of ECL of ` 74 Crore recognised during the year on account of time value of money) relates to the amounts withheld by GRIDCO due to tariff adjustments on account of transmission line constraints in respect of which GRIDCO’s appeal against order of APTEL is pending before the Hon’ble Supreme Court of India and ` 234 crores (net of ECL of ` 47 Crore) relates to alleged short supply of power for which the Company’s appeal on certain grounds are pending before APTEL. (d) The total trade receivables as at 01 April 2021 were ` 2,241 Crore (net of provision for expected credit loss). 8 Financial assets - Loans Particulars Unsecured, considered good As at 31 March 2023 As at 31 March 2022 Non- current Current Total Non- current Current Total (` in Crore) Loans to related parties (Refer note 39 and 41(c)) 126 Loans and advances to employees Unsecured, considered credit impaired Loans to related parties (Refer note 39) Less: Provision for expected credit loss Total 9 Financial assets - Others - - - 126 504 3 5 (5) 507 630 3 5 (5) 633 154 - - - 154 364 1 5 (5) 365 518 1 5 (5) 519 As at 31 March 2023 As at 31 March 2022 (` in Crore) Current Total Non- current Current Total Particulars Bank deposits a, b Site restoration asset b Unsecured, considered good Security deposits Advance recoverable (Oil and Gas Business) Others c Long term advance to related party (Refer note 3(d) and 39) Non- current 521 701 144 - 748 565 - - 11 6,658 70 - 521 701 155 6,658 818 565 298 589 74 - 716 - - Receivable from related parties (Refer note 39) - 501 501 Unsecured, considered credit impaired Security deposits Others c Less: Provision for expected credit loss Total 15 467 (482) 2,679 1 199 (200) 7,240 16 666 (682) 9,919 15 458 (473) 1,677 - - 18 7,068 82 - 226 1 273 (274) 7,394 298 589 92 7,068 798 - 226 16 731 (747) 9,071 383 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (a) Bankdepositsincludesfixeddepositswithmaturitymorethan12monthsof` 107 Crore (31 March 2022: ` Nil Crore) under lien with bank, ` 208 Crore (31 March 2022: ` 81 Crore) held as reserve created against principal payment on loans from banks, ` 146 Crore (31 March 2022: ` 156 Crore) held as interest reserve created against interest payment on loans from banks, ` 58 Crore (31 March 2022: ` 61 Crore) held as margin money created against bank guarantee and ` 2 Crore (31 March 2022: `NilCrore)heldasfixeddepositforclosurecost. (b) Bankdepositsandsiterestorationassetearnsinterestatfixedratebasedonrespectivedepositrate. (c) GovernmentofIndia(GoI)videOfficeMemorandum(“OM”)No.O-19025/10/2005-ONG-DVdated01February2013 allowed for Exploration in the Mining Lease Area after expiry of Exploration period and prescribed the mechanism for recoveryofsuchExplorationCostincurred.VideanotherMemorandumdated24October2019,GoIclarifiedthatall 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, the Company has started recognizing revenue, for past exploration costs, through increased share in the joint operations revenue as the Company believes thatcostrecoverymechanismprescribedunderOMforprofitpetroleumpayabletoGoIisnotapplicabletoitsJoint operation partner, a view which is also supported by an independent legal opinion. At year end, an amount of ` 859 Crore (US$ 105 million) (31 March 2022: ` 790 Crore (US$ 105 million)) is receivable from its joint operation partner on account of this. However, the Joint operation partner carries a different understanding and the matter is pending resolution. 10 Other assets Particulars Capital advances Advances for related party supplies (Refer note 39) Advances for supplies Others Balance with government authorities a Loantoemployeebenefittrust Others b Unsecured, considered doubtful Capital advances Balance with government authorities Advance for supplies Others b Less : Provision for doubtful advances Total As at 31 March 2023 As at 31 March 2022 (` in Crore) Non- current Current Total Non- current 687 25 - 631 53 650 176 3 - 380 (559) 2,046 - 1,569 1,480 1,006 - 662 - 106 58 4 (168) 4,717 687 1,594 1,480 1,637 53 1,312 176 109 58 384 (727) 6,763 Current Total - 84 766 145 1,658 1,658 619 - 836 - 9 58 4 (71) 1,226 178 1,438 173 12 58 370 (613) 766 61 - 607 178 602 173 3 - 366 (542) 2,214 3,197 5,411 (a) Includes ` 34 Crore (31 March 2022: ` 30 Crore), being Company’s share of gross amount of ` 97 Crore (31 March 2022: `86Crore)paidunderprotestonaccountofEducationCessandSecondaryHigherEducationCessforthefinancial year 2013-14. (b) Others include claim receivables, advance recoverable (oil and gas business), prepaid expenses and export incentive receivables. 384 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (` in Crore) As at 31 March 2023 As at 31 March 2022 1,706 1,816 1,908 1,208 2,503 3,018 336 1,151 32 671 2 8,217 385 1,084 357 600 3 8,563 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 (a) For method of valuation for each class of inventories, refer note 3(a)(J). (b) Inventory held at net realisable value amounted to ` 1,824 Crore (31 March 2022: ` 2,632 Crore). (c) Write down of inventories amounting to `43CrorehasbeenchargedtotheStatementofProfitandLossduringtheyear (31 March 2022: ` 42 Crore). 12 Current financial assets - Cash and cash equivalents Particulars Balances with banks a Deposits with original maturity of less than 3 months (including interest accrued thereon) b Cash on hand Total (` in Crore) As at 31 March 2023 As at 31 March 2022 5,088 59 0 5,147 3,817 1,701 0 5,518 (a) Including foreign inward remittances aggregating ` 223 Crore (US$ 27 million) (31 March 2022: ` 3,319 Crore (US$ 439 million)) held by banks in their nostro accounts on behalf of the Company. (b) Bankdepositsearninterestatfixedratebasedonrespectivedepositrates. 13 Current financial assets - 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, d Bank deposits with original maturity of more than 12 months (including interest accrued thereon) c, d Earmarked unpaid dividend accounts e Earmarked escrow account f Total (` in Crore) As at 31 March 2023 As at 31 March 2022 202 0 114 2 318 934 18 439 2 1,393 (a) Includes ` 66 Crore (31 March 2022: ` 439 Crore) on lien with banks and margin money of ` 41 Crore (31 March 2022: ` 40 Crore). (b) Restricted funds of ` 22 Crore (31 March 2022: ` 7 Crore) on lien with others and ` 64 Crore (31 March 2022: ` 57 Crore) held as margin money created against bank guarantee. 385 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (c) Includes ` 0 Crore (31 March 2022: `3Crore)ofmarginmoneywithbanksandfixeddepositunderlienwithothersof ` 0 Crore (31 March 2022: ` 15 Crore). (d) Bankdepositsearninterestatfixedratebasedonrespectivedepositrates. (e) Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed or unpaid dividend, as per the provisions of the Act. (f) Earmarked escrow account is restricted in use as it relates to unclaimed redeemable preference shares. 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] B. Issued, subscribed and paid up Equity shares of ` 1/- each with voting rights a, b As at 31 March 2023 As at 31 March 2022 Number (in Crore) Amount (` in Crore) Number (in Crore) Amount (` in Crore) 4,402 4,402 4,402 4,402 301 3,010 301 3,010 372 372 372 372 372 372 372 372 (a) Includes 3,05,832 (31 March 2022: 3,05,832) equity shares kept in abeyance. These shares are not part of listed equity capital and pending allotment as they are sub-judice. (b) Includes 40,05,075 (31 March 2022: 86,93,406) equity shares held by Vedanta Limited ESOS Trust (Refer note 27). C. Shares held by the Ultimate holding company and its subsidiaries* Particulars Twin Star Holdings Limited Finsider International Company Limited Welter Trading Limited Vedanta Holdings Mauritius Limited Vedanta Netherland Investment BV Vedanta Holdings Mauritius II Limited Total As at 31 March 2023 As at 31 March 2022 Number of Shares held (in Crore) 172.48 16.35 3.82 10.73 0.50 49.28 253.16 % of holding 46.40 4.40 1.03 2.89 0.13 13.26 68.11 Number of Shares held (in Crore) 172.48 16.35 3.82 10.73 6.35 49.28 259.01 % of holding 46.40 4.40 1.03 2.89 1.71 13.26 69.69 * The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet dates. All the above entities are subsidiaries of Volcan Investments Limited, the ultimate holding Company. 386 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS D. Details of shareholders holding more than 5% shares in the Company * Particulars Twin Star Holdings Limited Vedanta Holdings Mauritius II Limited Life Insurance Corporation of India As at 31 March 2023 As at 31 March 2022 Number of Shares held (in Crore) 172.48 49.28 33.54 % of holding 46.40 13.26 9.02 Number of Shares held (in Crore) 172.48 49.28 32.11 % of holding 46.40 13.26 8.64 * The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet dates. As per the records of the Company, including its register of shareholders/ members, the above shareholding represents legal ownership of shares. E. Disclosure of Shareholding of Promoters and Promoter Group Promoter name Twin Star Holdings Limited Finsider International Company Limited Welter Trading Limited Vedanta Holdings Mauritius II Limited Vedanta Holdings Mauritius Limited Vedanta Netherland Investment BV Mr. Pravin Agarwal Ms. Suman Didwania Mr. Ankit Agarwal Ms. Sakshi Mody Total As at 31 March 2023 As at 31 March 2022 Number of Shares held (in Crore) % of holding % Change during the year Number of Shares held (in Crore) % of holding 172.48 16.35 3.82 49.28 10.73 0.50 0.00 0.01 0.00 0.00 46.40 4.40 1.03 13.26 2.89 0.13 0.00 0.00 0.00 0.00 - - - - - (1.58) - - - - 172.48 16.35 3.82 49.28 10.73 6.35 0.00 0.01 0.00 0.00 46.40 4.40 1.03 13.26 2.89 1.71 0.00 0.00 0.00 0.00 253.17 68.11 (1.58) 259.02 69.69 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) 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 FY 2013-14) during FY 2002-2003 reduced its paid up share capital by ` 10 Crore. There are 2,00,038 equity shares (31 March 2022: 1,99,373 equity shares) of `1eachpendingclearancefromNSDL.TheCompanyhasfiledanapplicationinHon'bleHigh CourtofMumbaitocanceltheseshares,thefinaldecisiononwhichispending.Hon'bleHighCourtofJudicatureat Mumbai, vide its interim order dated 06 September 2002 restrained any transaction with respect to subject shares. 387 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 15 Other equity (Refer statement of changes in equity) a) General reserve: Under the erstwhile Companies Act, 1956, general reserve was created through an annual transfer of netincomeataspecifiedpercentageinaccordancewithapplicableregulations.Thepurposeofthesetransferswas 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 introductionofCompaniesAct,2013(“Act”),therequirementtomandatorilytransferaspecifiedpercentageofthenet profittogeneralreservehasbeenwithdrawn. The Board of Directors of the Company, on 29 October 2021, approved the Scheme of Arrangement between the Company and its shareholders under Section 230 and other applicable provisions of the Act (“Scheme”). The Scheme provides for capital reorganisation of the Company, inter alia, providing for transfer of amounts standing to the credit of the General Reserves to the Retained Earnings of the Company with effect from the Appointed Date. Post the requisite approvals obtained from Stock Exchanges and pursuant to the National Company Law Tribunal ("NCLT"), Mumbai Bench Order dated 26 August 2022 (“NCLT Order”), the proposed scheme was approved by the shareholders with requisite majority on 11 October 2022. TheCompanyisintheprocessofcomplyingwiththefurtherrequirementsspecifiedintheNCLTOrder. b) Debenture redemption reserve: As per the earlier provisions under the Act, companies that issue debentures were requiredtocreatedebentureredemptionreservefromannualprofitsuntilsuchdebenturesareredeemed.Companies are required to maintain 25% as a reserve of outstanding redeemable debentures. The amounts credited to the debentureredemptionreservemaybeutilizedonlytoredeemdebentures.TheMCAvideitsNotificationdated16 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. Accordingly, the Company is now not required to create debenture redemption reserve. c) Preference share redemption reserve: The Act provides that companies that issue preference shares may redeem thosesharesfromprofitsoftheCompanywhichotherwisewouldbeavailablefordividends,orfromproceedsofa 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)ornetincome,beforethesharesareredeemed.Ifprofitsareusedtoredeempreferenceshares,thevalue ofthenominalamountofsharesredeemedshouldbetransferredfromprofits(retainedearnings)tothepreference 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 and provide adequate return to shareholders through continuing growth. The Company’soverallstrategyremainsunchangedfrompreviousyear. 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 short term investments. Equity comprises all components including other comprehensive income. 388 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The following table summarizes the capital of the Company: Particulars Cash and cash equivalents (Refer note 12) Other bank balances a (Refer note 13) Non-current bank deposits a (Refer note 9) Short term investments (Refer note 6B) Total cash (a) Non-current borrowings (Refer note 17A) Current borrowings (Refer note 17B) Total borrowings (b) Net debt c=(b-a) Total equity Total capital (equity + net debt) (d) Gearing ratio (times) (c/d) (` in crore, except otherwise stated) As at 31 March 2023 As at 31 March 2022 5,147 116 315 1,786 7,364 32,606 9,417 42,023 34,659 67,812 5,518 873 81 585 7,057 23,421 13,275 36,696 29,639 77,649 1,02,471 1,07,288 0.34 0.28 (a) The constituents of ‘total cash’ for the purpose of capital management disclosure include only those amounts of restricted funds that are corresponding to liabilities (e.g. margin money deposits). Consequently, restricted funds amounting to ` 408 Crore (31 March 2022: ` 737 Crore) have been excluded from ‘total cash’ in the capital management disclosures. 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 External commercial borrowings Unsecured Non-convertible debentures Deferred sales tax liability Rupee term loans from banks Loan from Related parties (Refer Note 39) Redeemable preference shares Non current borrowings Less: Current maturities of long term borrowings a Total Non current borrowings (Net) (A) Current borrowings (Refer note 17B) (B) Total borrowings (A+B) (` in Crore) As at 31 March 2023 As at 31 March 2022 7,087 5,016 25,126 - 3,261 800 28 1,295 1,109 2 38,708 (6,102) 32,606 9,417 42,023 22,557 623 1,119 - 54 500 - 2 29,871 (6,450) 23,421 13,275 36,696 389 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 B) Current borrowings Particulars At amortised cost Secured Working Capital Loan Current maturities of long term borrowings a Unsecured Loans repayable on demand from banks Commercial paper Rupee term loans from banks Amounts due on factoring Current maturities of long term borrowings a Total (a) Current Maturities of long term borrowings consists of: Particulars Secured Non-convertible debentures Term loans from banks - Rupee term loans - Foreign currency term loans External commercial borrowings Unsecured Deferred sales tax liability Redeemable preference shares Non-convertible debentures Rupee term loans from banks Total (` in Crore) As at 31 March 2023 As at 31 March 2022 70 4,213 2,256 489 500 - 1,889 9,417 - 5,921 1,000 4,986 700 139 529 13,275 (` in Crore) As at 31 March 2023 As at 31 March 2022 - 2,018 3,828 - 385 18 2 800 1,069 6,102 3,280 623 - 27 2 - 500 6,450 b) Details of Non-convertible debentures issued by the Company have been provided below (Carrying Value): Particulars 8.74% due June 2032 9.20% due February 2030 7.68% due December 2024 3m T-bill rate + 240 bp due March 2024 * 9.20% due December 2022 8.75% due June 2022 Total * 3 month treasury bill rate as at 31 March 2023 is 6.34%. 390 (` in Crore) As at 31 March 2023 As at 31 March 2022 4,089 2,000 998 800 - - 7,887 - 2,000 997 - 749 1,270 5,016 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS c) The Company has taken borrowings towards funding of its acquisitions, capital expenditure and working capital requirements.Theborrowingscomprisefundingarrangementsfromvariousbanksandfinancialinstitutions.The details of security provided by the Company to various lenders on the assets of the Company are as follows: Particulars Secured non-current borrowings Secured current borrowings Total secured borrowings Facility Category Security details Working capital loans First Pari passu charge by way of mortgage/hypothecation over the specifiedimmovableandmovablefixedassetsoftheCompanywitha minimumfixedassetcoverof1.1timesoftheoutstandingtermloan during the period of the facility. Security comprise of assets of the aluminium and power division of the Company, comprising: (i) 1.6 MTPA aluminium smelter along with 1,215 MW Captive power plant ("CPP") at Jharsuguda and, (ii) 1MTPAaluminarefineryalongwith90MWCPPatLanjigarh,Odisha. (` in Crore) As at 31 March 2023 As at 31 March 2022 31,261 4,283 35,544 23,394 5,921 29,315 (₹ in Crore) As at 31 March 2023 As at 31 March 2022 70 - External Commercial Borrowings Afirstparipassuchargebywayofhypothecationonthespecifiedmovable fixedassetsoftheCompanypertainingtoitsmanufacturingfacilities comprising: 2,037 1,119 (i) aluminarefineryhavingoutputof6MTPAalongwithco-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. First pari passu charge by way of hypothecation on all present and future movableassetsoftheCompanywithaminimumfixedassetcoverof 1.10 times of the outstanding facility during the period of the facility comprising: (i) 1.6 MTPA (proposed capacity of 1.8 MTPA) aluminium smelter along with 1,215 MW CPP at Jharsuguda; (ii) 1MTPA(proposedcapacityof6MTPA)aluminarefineryalongwith90 MW CPP at Lanjigarh, Odisha (iii) 2,400 MW Power plant (1,800 MW CPP and 600 MW Independent Power Plant ("IPP")) located at Jharsuguda, Odisha and (iv) Oil and Gas division comprising RJ-ON-90/1 Oil and Gas Block (Rajasthan),Cambayoilfields,RavvaOilandGasfields(underPKGM-1 block) and OALP blocks. 1,224 - Non-Convertible Debentures Securedbywayoffirstparipassuchargeonwholeofthemovablefixed assets of: 2,000 2,000 (i) aluminarefineryhavingoutputof1MTPAalongwithco-generation captive power plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha; and (ii) aluminum smelter having output of 1.6 MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda, Odisha. Additionally, secured by way of mortgage on the freehold land comprising 18.92 acres situated at Jharsuguda, Odisha. 391 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Facility Category Security details First ranking pari passu charge by way of mortgage over 18.92 acres freehold land in Jharsuguda, Odisha together with the building and structures/ erections constructed/ to be constructed thereon and all the plantandmachineryandotherfurnitureandfixtureserected/installed ortobeerected/installedthereonandhypothecationovermovablefixed assets excluding capital work in progress in relation to the aluminium divisioncomprising6MTPAaluminarefineryalongwith90MWco- generation captive power plant in Lanjigarh, Odisha; and 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW) power plant and 2400 MW power plant in Jharsuguda, Odisha including its movable plant and machinery, machinery spares, tools and accessories and other movablefixedassets. Securedbywayoffirstpari-passuchargeonthespecificmovablefixed assets.Thewholeofthemovablefixedassetsbothpresentandfuture, of the Company in relation to the aluminium division, comprising the following facilities: (i) 1MTPAaluminarefineryalongwith90MWco-generationcaptive power plant in Lanjigarh, Odisha; and (ii) 1.6 MTPA aluminium smelter plant along with 1,215 MW (9x135 MW) power plant in Jharsuguda, Odisha including its movable plant and machinery, capital work in progress, machineryspares,toolsandaccessories,andothermovablefixed assets. Other secured non-convertible debentures Secured by a pari passu charge by way of hypothecation of all the movable fixedassetsoftheCompanypertainingtoitsaluminiumdivisionproject consisting: (i) aluminarefineryhavingoutputof1MTPA(Refinery)alongwithco- 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 1,215 (9x135)MWCPPatJharsuguda,Orissa(Smelter)(theRefinery,Power Plant and Smelter). Also,afirstparipassuchargebywayofequitablemortgageontheland pertaining to the mentioned project of aluminium division. Secured by a pari passu charge by way of hypothecation on the movable fixedassetsoftheLanjigarhRefineryExpansionProjectincluding210 MWPowerProject.LanjigarhRefineryExpansionProjectshallspecifically excludethe1MTPAaluminarefineryoftheCompanyalongwith90MW power plant in Lanjigarh and all its related expansions. Secured by a pari passu charge by way of hypothecation on the movable fixedassetsofthetheCompanypertainingtoitsaluminiumdivision comprising1MTPAaluminarefineryplantwith90MWcaptivepowerplant at Lanjigarh, Odisha and 1.6 MTPA aluminium smelter plant with 1,215 MW captive power plant at Jharsuguda, Odisha. Secured by a pari passu charge by way of hypothecation/ equitable mortgageofthemovable/immovablefixedassetsoftheCompany pertainingtoitsaluminiumdivisioncomprising1MTPAaluminarefinery plant with 90 MW captive power plant at Lanjigarh, Odisha and 1.6 MTPA aluminium smelter plant with 1,215 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 the Company comprisingaluminarefineryhavingoutputof1MTPAalongwithco- 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 1,215 (9x135) MW CPP at Jharsuguda, Orissa and additional charge on Lanjigarh Expansion project, both present and future. Non-Convertible Debentures Term loans from banks (includes rupee term loans and foreign currency term loans) 392 (₹ in Crore) As at 31 March 2023 As at 31 March 2022 4,089 - 998 997 - 1,605 2,019 1,776 359 402 3,394 3,434 5,873 6,623 780 999 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Facility Category Security details Term loans from banks (includes rupee term loans and foreign currency term loans) Securedbyafirstparipassuchargeontheidentifiedfixedassetsofthe Company both present and future, pertaining to its aluminium business (Jharsuguda Plant, Lanjigarh Plant), 2,400 MW power plant assets at Jharsuguda, copper plant assets at Silvassa, iron ore business in the states of Karnataka and Goa, dividends receivable from Hindustan Zinc Limited (“HZL”), a subsidiary of the Company, and the debt service reserve account to be opened for the facility along with the amount lying to the credit thereof h. AfirstparipassufirstchargebywayofhypothecationontheSpecified movablefixedassetsoftheCompanypertainingtoitsManufacturing facilities comprising: (i) aluminarefineryhavingoutputof1MTPAalongwithco-generation captive power plant with an aggregate capacity of 90 MW at Lanjigarh, Orissa (ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135) MW CPP at Jharsuguda, Orissa. Afirstparipassuchargedbywayofhypothecationonthespecified movablefixedassets(presentandfuture)includingmovableplantand machinery,machineryspares,toolsandaccessories,furnitureandfixtures, vehicle, capital work-in progress, etc of the Company pertaining to aluminium business (Jharsuguda, Lanjigarh) and 2,400 MW power plant at Jharsuguda as more particulary described as below : (i) aluminarefineryupto6MTPAalongwithcogenerationcaptivepower plant with aggregate capacity of 90 MW located in Lanjigarh, Odisha (ii) alumina smelter output of 1.6 MTPA aluminium smelter including 1,215 (9x135) MW power plant in Jharsuguda, Odisha (iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha. Afirstparipassuchargebywayofmortgage/hypothecationoverthe specifiedmovablefixedassetsoftheCompany.Securityshallcompriseof assets of the aluminum and power division of the Company, comprising: (i) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda and (ii) 1MTPAaluminarefineryalongwith90MWCPPatLanjigarh,Odisha. (₹ in Crore) As at 31 March 2023 As at 31 March 2022 7,221 7,821 1,137 473 1,191 - - - - Securedbyfirstparipassuchargebywayofmovablefixedassetsofthe aluminium division of the Company comprising: 743 (i) 6MTPAaluminiumrefineryalongwith90MWCo-generationcaptive power plant in Lanjigarh, Orissa; (ii) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda, (iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha and (iv) Oil and gas division comprising RJ-ON-90/91 Oil and Gas Block (Rajasthan), Cambay Oil Fields, Ravva Oil and gas Fields under (PKMGH-1 block) and OALP blocks Afirstparipassufirstchargebywayofhypothecationonthespecified movablefixedassetsoftheCompanypertainingtoitsManufacturing facilities comprising: (i) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda and (ii) 1MTPAaluminarefineryalongwithCPPof90MWatLanjigarh,Odisha Afirstparipassuchargebywayofmortgage/hypothecationoverthe specifiedimmovableandmovablefixedassetsoftheCompany.Security shall comprise of assets of the aluminum and power division of the Company, comprising: (i) 1.6 MTPA Aluminium Smelter along with 1,215 MW CPP at Jharsuguda and (ii) 1MTPAAluminarefineryalongwithCPPof90MWCPPatLanjigarh, Odisha 490 - 927 393 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Facility Category Security details Term loans from banks (includes rupee term loans and foreign currency term loans) Afirstparipassuchargebywayofhypothecationonallpresentandfuture movable Fixed Assets including movable plant and machinery, machinery spares,toolsandaccessories,furnitureandfixtures,vehicles,Capital Work-in-ProgressetcoftheCompanywithaminimumfixedassetcoverof 1.10 times as more particularly described as below: (₹ in Crore) As at 31 March 2023 As at 31 March 2022 250 - (i) aluminarefineryupto6MTPAalongwithco-generationCPPwithan aggregate capacity of 90 MW located at Lanjigarh, Orissa; (ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135) MW CPP located at Jharsuguda, Orissa. (iii) 2,400 MW Power Plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha; and (iv) Oil and Gas division comprising of RJ-ON-90/1 Oil and Gas Block (Rajasthan), Cambay Oil Fields and Ravva Oil and Gas Fields (under PKGM-1 block) First pari passu charge by way of hypothecation on all present and future movablefixedassetsoftheCompanyincludingbutnotlimitedtoplantand machinery, spares, tools and accessories of 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda, Odisha and 1 MTPA alumina refineryalongwith90MWCPPatLanjigarh,Odisha Other Secured term loans 683 880 - 35,544 1,245 29,315 Total d) Theloanfacilitiesaresubjecttocertainfinancialandnon-financialcovenants.Theprimarycovenantswhichmustbe complied with include interest service coverage ratio, current ratio, debt service coverage ratio, total outside liabilities tototalnetworth,fixedassetscoverageratio,ratiooftotaltermliabilitiestonetworthanddebt/EBITDA.TheCompany has complied with the covenants as per the terms of the loan agreement. Further,incaseofborrowingshavingcurrentassetsassecurity,thequarterlystatementsofcurrentassetsfiledbythe Company with its lenders are in agreement with the books of accounts. e) Terms of repayment of total borrowings outstanding as at 31 March 2023 are provided below - (` in Crore) Borrowings Rupee term loan Commercial paper Non-convertible debentures Weighted average interest rate as at 31 March 2023 8.39% Total carrying value <1 year 1-3 years 3-5 years >5 years Remarks 26,921 5,436 10,589 9,832 1,168 Repayable in 466 quarterly payments 7.80% 8.77% 489 7,887 489 800 - 1,000 Working capital loan 7.58% 2,326 2,326 - Deferred sales tax liability NA 28 External commercial borrowing Redeemable preference shares 7.42% 3,261 NA 2 Loan from Related party 8.90% 1,109 18 394 10 1,923 2 - - - - - - 0 970 - 2 half yearly payments - Repayable in 1 bullet payment 6,089 Repayable in 4 bullet payments - This includes loans repayable on demand from banks for ` 2,256 Crore. - Repayable in 43 monthly installments - Repayable in 35 half yearly payments - The redemption and dividend paid to the preference shares unclaimed if any, is payable on claim. - 1,109 Repayable in 1 bullet payment Total 42,023 9,465 13,522 10,802 8,366 The above maturity is based on the total principal outstanding gross of issue expenses and discounting impact of deferred sales tax liability. 394 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS f) Terms of repayment of total borrowings outstanding as at 31 March 2022 are provided below - (` in Crore) Borrowings Weighted average interest rate as at 31 March 2022 Total carrying value <1 year 1-3 years 3-5 years >5 years Remarks Foreign currency term loan 3.92% 623 623 - - - Repayable in 7 quarterly installments and 1 monthly installment Rupee term loan 7.80% 23,757 4,504 7,033 8,336 3,969 Repayable in 671 quarterly Commercial paper Non convertible debentures 5.90% 8.78% 4,986 5,016 4,986 2,020 - 1,000 Working capital loan* 4.98% 1,000 1,000 - Amounts due on factoring Deferred sales tax liability External commercial borrowing Redeemable preference shares 1.23% NA 139 54 3.50% 1,119 NA 2 139 27 - 2 - 27 680 installments - Repayable in 12 bullet payments 2,000 Repayable in 4 bullet payments - Export packing credit, working capital loan and loan repayable on demand are repayable within one year from the date of drawl - Repayable within one month - Repayable in 55 monthly installments - - - - 0 454 - Repayable in 5 half yearly payments - - - The redemption and dividend paid to the preference shares unclaimed if any, is payable on claim. Total 36,696 13,301 8,740 8,790 5,969 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 ` 1,000 Crore. g) Movement in borrowings during the year is provided below- Particulars Opening balance at 01 April 2021 Cash flow Other non-cash changes As at 31 March 2022 Opening balance at 01 April 2022 Cash flow Other non cash changes As at 31 March 2023 Short-term borrowings Long-term borrowings* 1,140 5,618 67 6,825 6,825 (3,565) 55 3,315 31,026 (1,308) 153 29,871 29,871 8,740 97 38,708 (` in Crore) Total debt 32,166 4,310 220 36,696 36,696 5,175 152 42,023 *including Current maturities of Long term borrowings. Other non-cash changes comprised of amortisation of borrowing costs and foreign exchange difference on borrowings. h) In December 2021, the Company executed a ` 8,000 Crore facility agreement with Union Bank of India Limited to take over a long term syndicated facility of ` 10,000 Crore. This loan is secured by the way of pledge over the shares held by the Company in Hindustan Zinc Limited ("HZL") equal to minimum 1x outstanding loan value (calculated quarterly at Value Weighted Average Price), currently representing 6.77% (31 March 2022: 5.77%) of the paid-up shares of HZL. Further, the Company has also signed a Non-Disposal Undertaking ("NDU") in respect of its shareholding in HZL to the extent of 50.10% of the paid-up share capital of HZL. As at 31 March 2023, the outstanding loan amount under the facility is ` 7,240 Crore (31 March 2022: ` 7,840 Crore). 395 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 18 Financial liabilities - Trade payables Particulars Undisputed dues – MSME Not due Less than 1 year 1-2 years 2-3 years More than 3 years Sub-total Undisputed dues - Others Unbilled dues Not due Less than 1 year 1-2 Years 2-3 years More than 3 years Sub-total Disputed dues - Others 1-2 Years More than 3 years Sub-total Total (` in Crore) As at 31 March 2023 As at 31 March 2022 82 130 4 2 - 218 1,316 2,893 1,056 90 23 57 70 115 4 2 4 195 1,173 2,817 1,193 23 72 50 5,435 5,328 - 1 1 1 - 1 5,654 5,524 (a) Trade payables are non-interest bearing and are normally settled upto 180 days terms. (b) For amount due and terms and conditions relating to related party payables. Refer note 39. 19 Operational Buyers'/ Suppliers' Credit is availed in foreign currency from offshore branches of Indian banks or foreign banks at an interest rate ranging from 0.69% to 7.38% (31 March 2022: 0.29% to 3.16%) per annum and in rupee from domestic banks at interest rate ranging from 4.35% to 8.80% (31 March 2022: 4.00% to 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. PartofthesefacilitiesaresecuredbyfirstparipassuchargeoverthepresentandfuturecurrentassetsoftheCompany. 20 Financial liabilities - Others Particulars Liability for capital expenditure Security deposits and retentions Interest accrued but not due Unpaid/unclaimed dividend a Dividend payable Unpaid matured deposits and interest accrued thereon b Profitpetroleumpayable Dues to related parties (Refer note 39) Other liabilities c Total 396 (` in Crore) As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current - - - - - - - - - - 7,082 7,082 192 6,427 39 445 114 39 445 114 7,613 7,613 0 0 1,849 1,849 287 996 287 996 - - - - - - - - 18,425 18,425 192 29 180 96 - 0 1,413 155 1,502 9,802 Total 6,619 29 180 96 - 0 1,413 155 1,502 9,994 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (a) Does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except ` 0.23 Crore (31 March 2022: ` 0.13 Crore) which is held in abeyance due to a pending legal case. (b) Matured deposits of ` 0.01 Crore (31 March 2022: ` 0.01 Crore) due for transfer to Investor Education and Protection Fundhavenotbeentransferredinviewofpendinglitigationbetweenthebeneficiaries. (c) Includes revenue received in excess of entitlement interest of ` 239 Crore (31 March 2022: ` 750 Crore) of which ` 135 Crore is payable to ONGC, reimbursement of expenses, provision for expenses, liabilities related to compensation/ claim etc. 21 The movement in lease liabilities is as follows : At 01 April 2021 Additions during the year Interest on lease liabilities Payments made FCTR and other adjustments At 01 April 2022 Additions during the year Interest on lease liabilities Payments made FCTR and other adjustments At 31 March 2023 22 Financial instruments A. Financial assets and liabilities: (` in Crore) 133 12 7 (64) (6) 82 29 6 (22) 2 97 Theaccountingclassificationofeachcategoryoffinancialinstruments,andtheircarryingamounts,aresetoutbelow: As at 31 March 2023 Financial Assets Investments* Trade receivables Cash and cash equivalents Other bank balances Loans Derivatives Otherfinancialassets Total Fair value through profit or loss Fair value through other comprehensive income Derivatives designated as hedging instruments Amortised cost Total carrying value Total fair value (` in Crore) 1,885 171 - - - 19 - 81 - - - - - - 2,075 81 - - - - - 79 - 79 - 2,370 5,147 318 633 - 9,919 18,387 1,966 2,541 5,147 318 633 98 9,919 20,622 1,966 2,541 5,147 318 633 98 9,919 20,622 (` in Crore) Financial Liabilities Borrowings Trade payables Operational buyers' credit / suppliers' credit Derivatives Otherfinancialliabilities** Total Fair value through profit or loss - 899 - 67 - 966 Derivatives designated as hedging instruments - - - 104 - 104 Amortised cost Total carrying value Total fair value 42,023 4,755 10,485 - 18,522 75,785 42,023 5,654 10,485 171 18,522 76,855 41,974 5,654 10,485 171 18,522 76,806 397 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 As at 31 March 2022 Financial Assets Investments* Trade receivables Cash and cash equivalents Other bank balances Loans Derivatives Otherfinancialassets Total Fair value through profit or loss 615 248 - - - 3 - Fair value through other comprehensive income 118 - - - - - - 866 118 Derivatives designated as hedging instruments - - - - - 246 - 246 (` in Crore) Amortised cost Total carrying value Total fair value - 3,155 5,518 1,393 519 - 9,071 19,656 733 3,403 5,518 1,393 519 249 9,071 20,886 733 3,403 5,518 1,393 519 249 9,071 20,886 (` in Crore) Financial Liabilities Borrowings Trade payables Operational buyers' credit / suppliers' credit Derivatives Otherfinancialliabilities** Total Fair value through profit or loss Derivatives designated as hedging instruments Amortised cost Total carrying value Total fair value - 990 - 67 - 1,057 - - - 216 - 216 36,696 4,534 9,261 - 10,076 60,567 36,696 36,789 5,524 9,261 283 10,076 61,840 5,524 9,261 283 10,076 61,933 * Excludes investments (in equity shares, preference shares and debentures) 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”. **Includes lease liabilities of ` 97 Crore (31 March 2022: ` 82 Crore). B. Fair value hierarchy TheCompanyusesthefollowinghierarchyfordeterminingand/ordisclosingthefairvalueoffinancialinstrumentsby 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) Thebelowtablesummarisesthecategoriesoffinancialassetsandliabilitiesasat31March2023and31March2022 measured at fair value: As at 31 March 2023 Financial Assets At fair value through profit or loss - Investments -Derivativefinancialassets* - Trade receivables At fair value through other comprehensive income - Investments Derivatives designated as hedging instruments -Derivativefinancialassets* Total Level 1 Level 2 (` in Crore) Level 3 1,786 - - 70 - 1,856 - 19 171 - 79 269 99 - - 11 - 110 398 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Level 1 Level 2 (` in Crore) Level 3 - - - - 67 899 104 1,070 - - - - Level 1 Level 2 (` in Crore) Level 3 585 - - 107 - 692 - 3 248 - 246 497 30 - - 11 - 41 Level 1 Level 2 (` in Crore) Level 3 - - - - 67 990 216 1,273 - - - - Financial liabilities At fair value through profit or loss -Derivativefinancialliabilities* - Trade payables Derivatives designated as hedging instruments -Derivativefinancialliabilities* Total As at 31 March 2022 Financial Assets At fair value through profit or loss - Investments -Derivativefinancialassets* - Trade receivables At fair value through other comprehensive income - Investments Derivatives designated as hedging instruments -Derivativefinancialassets* Total Financial liabilities At fair value through profit or loss -Derivativefinancialliabilities* - Trade payables Derivatives designated as hedging instruments -Derivativefinancialliabilities* Total * Refer “D” below. The below table summarises the fair value of borrowings which are carried at amortised cost as at 31 March 2023 and 31 March 2022: As at 31 March 2023 Financial Liabilities Borrowings Total As at 31 March 2022 Financial Liabilities Borrowings Total Level 1 - - Level 2 41,974 41,974 Level 1 - - Level 2 36,789 36,789 (` in Crore) Level 3 - - (` in Crore) Level 3 - - Thefairvalueofthefinancialassetsandliabilitiesareattheamountthatwouldbereceivedtosellanassetandpaid 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: 399 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Investmentstradedinactivemarketsaredeterminedbyreferencetoquotesfromthefinancialinstitutions;forexample: 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 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). Tradereceivables,cashandcashequivalents,otherbankbalances,loans,otherfinancialassets,currentborrowings, tradepayablesandothercurrentfinancialliabilities:Fairvaluesapproximatetheircarryingamountslargelyduetothe short-term maturities of these instruments. Othernon-currentfinancialassetsandliabilities:Fairvalueiscalculatedusingadiscountedcashflowmodelwith market assumptions, unless the carrying value is considered to approximate to fair value. Non-currentfixed-rateandvariable-rateborrowings:FairvaluehasbeendeterminedbytheCompanybasedon parameterssuchasinterestrates,specificcountryriskfactors,andtheriskcharacteristicsofthefinancedproject. Derivativefinancialassets/liabilities:TheCompanyexecutesderivativefinancialinstrumentswithvarious 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.). Forallotherfinancialinstruments,thecarryingamountiseitherthefairvalue,orapproximatesthefairvalue. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designatedinhedgerelationshipandthevalueofotherfinancialinstrumentsrecognisedatfairvalue. The estimated fair value amounts as at 31 March 2023 and 31 March 2022 have been measured as at that date. As such,thefairvaluesofthesefinancialinstrumentssubsequenttoreportingdatemaybedifferentthantheamounts reported at each year-end. TherewerenosignificanttransfersbetweenLevel1,Level2andLevel3duringtheyear. C. Risk management framework TheCompany’sbusinessesaresubjecttoseveralrisksanduncertaintiesincludingfinancialrisks. TheCompany’sdocumentedriskmanagementpoliciesactasaneffectivetoolinmitigatingthevariousfinancialrisks 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.Risksareidentifiedatboththecorporateandindividualsubsidiarylevelwithactiveinvolvementofsenior management. Each operating subsidiary in the Company has in place risk management processes which are in line withtheCompany’spolicy.Eachsignificantriskhasadesignated‘owner’withintheCompanyatanappropriatesenior level.Thepotentialfinancialimpactoftheriskanditslikelihoodofanegativeoutcomeareregularlyupdated. The risk management process is coordinated by the Management Assurance function and is regularly reviewed by the Company’s Audit and Risk Management Committee ("ARC"). The ARC 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 overallinternalcontrolenvironmentandriskmanagementprogrammeincludingfinancialriskmanagementisreviewed by the Audit Committee on behalf of the Board. 400 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The risk management framework aims to: -improvefinancialriskawarenessandrisktransparency - identify, control and monitor key risks - identify risk accumulations - provide management with reliable information on the Company’s risk situation -improvefinancialreturns 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 businessunitsaremanagedbytheirrespectivefinanceteamswithintheframeworkoftheoverallGrouptreasury 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 ratesandcommodityprices.TheCompanydoesnotacquireorissuederivativefinancialinstrumentsfortradingor 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 ontheprofitabilityofthebusinesses.Asageneralpolicy,theCompanyaimstoselltheproductsatprevailingmarket 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 bytheBoardandtoastrictlydefinedinternalcontrolandmonitoringmechanism.Decisionsrelatingtohedgingof 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 401 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 basis hedges the aluminium content in outsourced alumina to protect its margins. The Company also executes hedging arrangements for its aluminium sales to realise average month of sale LME prices. Copper TheCompany’scustomrefiningcopperoperationsatSilvassaisbenefittedbyanaturalhedgeexcepttotheextentof apossiblemismatchinquotationalperiodsbetweenthepurchaseofanodes/blistersandthesaleoffinishedcopper. TheCompany’spolicyoncustomsmeltingistogeneratemarginsfromRefiningChargesor"RC”,improvingoperational efficiencies,minimisingconversioncost,generatingapremiumoverLMEonsaleoffinishedcopper,saleofby-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 andtriestomaketheLMEpriceapass-throughcostbetweenpurchasesofanodes/blistersandsalesoffinished products, both of which are linked to the LME price. RCsareamajorsourceofincomefortheIndiancopperrefiningoperations.FluctuationsinRCsareinfluencedby 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. The Company also hedges variability of crude price through forward contracts on selective basis. Natural gas markets are evolving differently in important geographical markets. There is no single global market for naturalgas.Thiscouldbeowingtodifficultiesinlarge-scaletransportationoverlongdistancesascomparedtocrude 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 On31March2023,thevalueofnetfinancialliabilitieslinkedtocommodities(excludingderivatives)accountedforon provisional prices was ` 728 Crore (31 March 2022: liabilities of ` 742 Crore). These instruments are subject to price movementsatthetimeoffinalsettlementandthefinalpriceoftheseinstrumentswillbedeterminedinthefinancial year beginning 01 April 2023. Setoutbelowistheimpactof10%increaseinLMEpricesonpre-taxprofit/(loss)fortheyearandpre-taxtotalequity asaresultofchangesinvalueoftheCompany’scommodityfinancialinstruments: For the year ended 31 March 2023 Copper (967) (97) - Total Exposure (` in Crore) Effect on profit/ (loss) of a 10% increase in the LME Effect on total equity of a 10% increase in the LME 402 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS For the year ended 31 March 2022 Total Exposure (` in Crore) Effect on profit/ (loss) of a 10% increase in the LME Effect on total equity of a 10% increase in the LME Copper (891) (89) - The above sensitivities are based on volumes, costs, exchange rates and other variables and provide the estimated impactofachangeinLMEpricesonprofitandequityassumingthatallothervariablesremainconstant.A10% decreaseinLMEpriceswouldhaveanequalandoppositeeffectontheCompany’sfinancialstatements. Theimpactonpre-taxprofit/(loss)mentionedaboveincludestheimpactofa10%increaseinclosingcopperLMEfor provisionally priced copper concentrate purchased at Copper division custom smelting operations in India of ` 129 Crore loss (31 March 2022: ` 122 Crore loss), which is pass through in nature and as such will not have any impact on theprofitability. Financial risk TheCompany’sBoardapprovedfinancialriskpoliciesincludemonitoring,measuringandmitigatingtheliquidity, currency, interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks tomanageriskandoptimizeinterestandcommoditypricingthroughprovenfinancialinstruments. (a) Liquidity The Company requires funds both for short-term operational needs as well as for long-term investment programmesmainlyingrowthprojects.TheCompanygeneratessufficientcashflowsfromthecurrentoperations 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. CRISIL ratings on the long-term bank facilities and debt instruments of the Company was maintained at 'CRISIL AA'duringFY2023afterupgradeto'CRISILAA'from'CRISILAA-'inFebruary2022. However,Outlookhasbeen revised to negative in March 2023. Theshort-termratingonbankfacilitiesandcommercialpaperhasbeenreaffirmedat'CRISILA1+' India Ratings, after upgrading the Company’s long-term issuer ratings to “IND AA” from “IND AA-“ with stable outlookinMarch2022,reaffirmeditsratingsat “INDAA”withstableoutlookinMay2022. Outlookwasrevisedto “negative” in March 2023. Theratingsaffirmationfactorsinrobust operatingprofitabilitysignificantlyhigherthanpre-pandemiclevels. Further,consolidatedEBITDAisexpectedtoincrease drivenbyhealthycommodityprices that areexpected toremainstable aroundcurrentlevels,robustoperatingratesacrosskeybusinesses,increasedvolume growth inAluminiumbusinesssupportedbycommissioningofnewcapacityduringfiscal2024alongwith expectedreductionincostofproductionforAluminiumbusinessonthebackofaluminarefineryexpansionand commissioningofcaptivecoalmines.Therevisioninoutlookreflectspossibilityofhigher-than-expectedfinancial leverageandlowerfinancialflexibility. Anticipated future cash flows, together with undrawn fund based committed facilities of ` 579 Crore, and cash, bank and short term investments of `7,364Croreasat31March2023,areexpectedtobesufficienttomeetthe liquidity requirement of the Company in the near future. The Company remains committed to maintaining a healthy liquidity, a low gearing ratio, deleveraging and strengtheningitsbalancesheet.ThematurityprofileoftheCompany’sfinancialliabilitiesbasedontheremaining 403 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 periodfromthedateofbalancesheettothecontractualmaturitydateisgiveninthetablebelow.Thefigures reflect the contractual undiscounted cash obligation of the Company. As at 31 March 2023 Payments due by year Borrowings * Derivativefinancialliabilities Lease liabilities Trade Payables and other financialliabilities** <1 year 12,955 151 46 34,266 1-3 years 3-5 years 17,650 13,063 >5 years 10,690 20 19 - - 3 - - 29 - (` in Crore) Total 54,358 171 97 34,266 Total 47,418 17,689 13,066 10,719 88,892 As at 31 March 2022 Payments due by year Borrowings * Derivativefinancialliabilities Lease liabilities Trade Payables and other financialliabilities** <1 year 15,502 277 25 24,478 1-3 years 3-5 years 11,897 10,457 >5 years 6,773 6 27 192 - 3 - - 27 - (` in Crore) Total 44,629 283 82 24,670 Total 40,282 12,122 10,460 6,800 69,664 *Includes Non-current borrowings, current borrowings, committed interest payments on borrowings and interest accrued on borrowings. **IncludesbothNon-currentandcurrentfinancialliabilitiesandcommittedinterestpayment,asapplicable.Excludesinterest accrued on borrowings. The Company had access to following funding facilities : As at 31 March 2023 Funding facilities Fund/non-fund based As at 31 March 2022 Funding facilities Fund/non-fund based (b) Foreign exchange risk Total Facility 58,039 Drawn 52,754 Total Facility 46,341 Drawn 44,183 (` in Crore) Undrawn 5,285 (` in Crore) Undrawn 2,158 Fluctuationsinforeigncurrencyexchangeratesmayhaveanimpactonthestatementofprofitandloss,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. 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. Naturalhedgesavailableinthebusinessareidentifiedateachentitylevelandhedgesareplacedonlyforthe 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 404 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 ofprofitandloss.TheexposureismitigatedbysomeofthederivativecontractsenteredintobytheCompanyas disclosedunderthesectionon“Derivativefinancialinstruments”. ThecarryingamountoftheCompany'sfinancialassetsandliabilitiesindifferentcurrenciesareasfollows: Currency INR USD Others Total (` in Crore) As at 31 March 2023 As at 31 March 2022 Financial Assets 16,304 4,033 285 20,622 Financial liabilities 53,560 22,876 419 76,855 Financial Assets 12,975 7,656 255 20,886 Financial liabilities 43,582 17,882 376 61,840 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-taxprofit/(loss)andpre-taxequityarisingasaresultoftherevaluationoftheCompany’sforeigncurrency monetaryfinancialassets/liabilities: For the year ended 31 March 2023 USD INR For the year ended 31 March 2022 USD INR Effect of 10% strengthening of functional currency on pre-tax profit/ (loss) 1,438 (456) (` in Crore) Effect of 10% strengthening of foreign currency on equity - - Effect of 10% strengthening of functional currency on pre-tax profit/ (loss) 666 (384) (` in Crore) Effect of 10% strengthening of foreign currency on equity - - A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect ontheCompany’sfinancialstatements. 405 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (c) Interest rate risk At 31 March 2023, the Company’s net debt of ` 34,659 Crore (31 March 2022: ` 29,639 Crore) comprises debt of ` 42,023 Crore (31 March 2022: ` 36,696 Crore) offset by cash, bank and short term investments of ` 7,364 Crore (31 March 2022: ` 7,057 Crore). The Company is exposed to interest rate risk on short-term and long-term floating rate instruments and on the refinancingoffixedratedebt.TheCompany’spolicyistomaintainabalanceoffixedandfloatinginterestrate borrowingsandtheproportionoffixedandfloatingratedebtisdeterminedbycurrentmarketinterestrates.The borrowingsoftheCompanyareprincipallydenominatedinIndianRupeesandUSdollarswithmixoffixedand 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. Floatingratefinancialassetsarelargelymutualfundinvestmentswhichhavedebtsecuritiesasunderlyingassets. Thereturnsfromthesefinancialassetsarelinkedtomarketinterestratemovements;howeverthecounterparty invests in the agreed securities with known maturity tenure and return and hence has manageable risk. TheexposureoftheCompany’sfinancialassetsasat31March2023tointerestrateriskisasfollows: As at 31 March 2023 Financial Assets Total Floating rate Financial assets Fixed rate financial assets (` in Crore) Non-interest bearing financial assets 20,622 1,786 2,317 16,519 TheexposureoftheCompany’sfinancialliabilitiesasat31March2023tointerestrateriskisasfollows: As at 31 March 2023 Financial Liabilities Total Floating rate Financial liabilities Fixed rate financial liabilities Non-interest bearing financial liabilities 76,855 30,982 21,568 24,305 (` in Crore) TheexposureoftheCompany’sfinancialassetsasat31March2022tointerestrateriskisasfollows: As at 31 March 2022 Financial Assets Total Floating rate Financial assets Fixed rate financial assets (` in Crore) Non-interest bearing financial assets 20,886 585 4,314 15,987 TheexposureoftheCompany’sfinancialliabilitiesasat31March2022tointerestrateriskisasfollows: As at 31 March 2022 Financial Liabilities Total Floating rate Financial liabilities Fixed rate financial liabilities Non-interest bearing financial liabilities 61,840 24,876 21,628 15,336 (` in Crore) Considering the net debt position as at 31 March 2023 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 financialinstrumentsatthebalancesheetdate. 406 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Thetablebelowillustratestheimpactofa0.5%to2.0%movementininterestratesonfloatingratefinancial assets/liabilities(net)onprofit/(loss)andequityassumingthatthechangesoccuratthereportingdateandhas 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% (` in Crore) Effect on pre-tax profit/(loss) during the year ended 31 March 2023 Effect on pre-tax profit/(loss) during the year ended 31 March 2022 (146) (292) (584) (121) (243) (486) AnequivalentreductionininterestrateswouldhaveanequalandoppositeeffectontheCompany’sfinancial statements. (d) Counterparty and concentration of credit risk Creditriskreferstotheriskthatcounterpartywilldefaultonitscontractualobligationsresultinginfinanciallossto the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficientcollateral,whereappropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults. TheCompanyisexposedtocreditriskfromtradereceivables,contractassets,investments,loans,otherfinancial assets,andderivativefinancialinstruments. 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 customerswithnosignificantconcentrationofcreditrisk.Thehistoryoftradereceivablesshowsanegligible 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. TheCompanyhasclearlydefinedpoliciestomitigatecounterpartyrisks.Forcurrentinvestments,counterparty limits are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversificationofcreditriskforourmutualfundandbondinvestments.Forderivativeandfinancialinstruments, theCompanyattemptstolimitthecreditriskbyonlydealingwithreputablebanksandfinancialinstitutions. Thecarryingvalueofthefinancialassetsrepresentsthemaximumcreditexposure.TheCompany’smaximum exposure to credit risk is ` 20,622 Crore and ` 20,886 Crore as at 31 March 2023 and 31 March 2022 respectively. ThemaximumcreditexposureonfinancialguaranteesgivenbytheCompanyforvariousfinancialfacilitiesis described in Note 38 on “Commitments, contingencies, and guarantees”. None of the Company’s cash equivalents, including time deposits with banks, are past due or impaired. Regarding tradereceivables,loansandotherfinancialassets(bothcurrentandnon-current),therewerenoindicationsasat the year end, that defaults in payment obligations will occur except as described in Notes 7 and 9 on allowance for impairmentoftradereceivablesandotherfinancialassets. Oftheyearendtradereceivables,loansandotherfinancialassets(excludingbankdeposits,siterestoration 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 2023 and 31 March 2022: 407 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 (` in Crore) As at 31 March 2023 As at 31 March 2022 8,847 8,134 627 135 80 2,182 11,871 1,692 66 121 2,093 12,106 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 creditqualityandprevailingmarketconditions.Receivablesthatareclassifiedas‘pastdue’intheabovetablesare 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 Company 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) Thechangesintheallowanceforfinancialassets(currentandnon-current)isasfollows: Particulars As at 01 April 2021 Allowance made during the year Exchange differences As at 31 March 2022 Allowance made during the year Reversals/ write-off during the year Exchange differences As at 31 March 2023 Trade receivables Financial assets - others Financial assets - loans (` in Crore) 803 198 - 1,001 355 - - 1,356 730 7 10 747 - (95) 30 682 5 - - 5 - - 5 D. Derivative financial instruments The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchangerates,interestratesandcommodityprices.TheCompanydoesnotacquireorissuederivativefinancial 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.Derivativesthataredesignatedashedgesareclassifiedascurrentornon-currentdependingonthematurity 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 byonlyenteringintocontractswithreputablebanksandfinancialinstitutions.Theuseofderivativeinstruments 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. 408 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (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 orlossesarereclassifiedtoprofitorloss.Thesehedgeshavebeeneffectivefortheyearended31March2023. 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 2022. 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 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 2024 and consequently mayimpactprofitorlossforthatyeardependinguponthechangeinthecommoditypricesandforeignexchange rates movements. For cash flow hedges regarded as basis adjustments to initial carrying value of the property, plantandequipment,thedepreciationonthebasisadjustmentsmadeisexpectedtoaffectprofitorlossoverthe 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 inthestatementofprofitandloss. The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currencytransactions.Fairvaluechangesonsuchforwardcontractsarerecognizedinthestatementofprofit 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 valuechangesonsuchderivativeinstrumentsarerecognizedinthestatementofprofitandloss. ThefairvalueoftheCompany’sderivativepositionsrecordedunderderivativefinancialassetsandderivative financialliabilitiesareasfollows: Derivative Financial Instruments Current Cash flow hedge* - Commodity contracts - Interest rate swap Fair Value hedge - Commodity contracts - Forward foreign currency contracts Non - qualifying hedges/economic hedge - Forward foreign currency contracts Sub-total (A) As at 31 March 2023 As at 31 March 2022 Assets Liabilities Assets Liabilities (` in Crore) 30 - 45 4 19 98 - - 69 15 67 151 231 1 10 4 3 249 62 - 57 91 67 277 409 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Derivative Financial Instruments Non-current Fair value hedge - Forward foreign currency contracts Sub-total (B) Total (A+B) As at 31 March 2023 As at 31 March 2022 Assets Liabilities Assets Liabilities (` in Crore) - - 98 20 20 171 - - 249 6 6 283 *Referstatementofprofitandlossandstatementofchangesinequityforthechangesinthefairvalueofcashflowhedges. E. Derivative contracts executed by the Company and outstanding as at Balance Sheet date : (i) To hedge currency risks and interest related risks, the Company has executed 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) Interest rate swap Total (` in Crore) As at 31 March 2023 As at 31 March 2022 9,679 0 3,261 12,940 12,558 161 1,735 14,454 (ii) For hedging commodity related risks :- Category wise break up is given below. Particulars Forwards/ Futures Crude (BBL) Copper (MT) Gold (Oz) Silver (Oz) Aluminium (MT) As at 31 March 2023 As at 31 March 2022 Purchases Sales Purchases Sales - 5,550 - 13,987 63,100 - 11,775 16,940 68,455 2,750 - 1,680,000 7,425 - 16,091 12,750 24,800 17,625 66,770 78,425 23 Other liabilities Particulars Amount payable to owned post-employment benefittrust Other statutory liabilities a Deferred government grant b Advance from customers c Advance from related party (Refer note 39) c Other liabilities Total (` in Crore) As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current - - 2,364 - - - 14 14 931 83 8,074 3 120 931 2,447 8,074 3 120 - - 2,346 404 - 1 14 1,097 80 3,159 2 122 Total 14 1,097 2,426 3,563 2 123 2,364 9,225 11,589 2,751 4,474 7,225 (a) Other statutory liabilities mainly include payable for PF, ESIC, withholding taxes, goods and service tax, VAT, etc. (b) RepresentsgovernmentassistanceintheformofthedutybenefitavailedunderExportPromotionCapitalGoods (EPCG) Scheme and Special Economic Zone (SEZ) scheme on purchase of property, plant and equipment accounted for as government grant and being amortised over the useful life of such assets. 410 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (c) Advance from customers are contract liabilities to be settled through delivery of goods. The amount of such balances as on 01 April 2021 was ` 4,496 Crore. During the current year, the Company has recognised revenue of ` 3,511 Crore (31 March 2022: ` 4,481 Crore) out of opening balances. All other changes are either due to receipt of fresh advances or exchange differences. 24 Provisions Particulars Provisionforemployeebenefits(Refernote25)a - RetirementBenefit - Others Provision for restoration, rehabilitation and environmental costs b,c As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current Total (` in Crore) 61 - 1,312 32 93 4 93 93 - - 1,316 1,268 77 79 2 77 79 1,270 Total 1,373 129 1,502 1,268 158 1,426 a) Provisionforemployeebenefitsincludesgratuity,compensatedabsences,deferredcashbonus,etc. b) The movement in provisions for restoration, rehabilitation and environmental costs is as follows [Refer note 3(a)(P)]: Particulars At 01 April 2021 Unwinding of discount (Refer note 32) Revision in estimates Exchange differences At 31 March 2022 Additions Amounts used Unwinding of discount (Refer note 32) Revision in estimates Exchange differences At 31 March 2023 (` in Crore) Restoration, rehabilitation and environmental costs (Refer c) 1,169 24 40 37 1,270 41 (1) 30 (131) 107 1,316 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 and gas business where a legal obligation existsrelatingtotheoilandgasfields,wherecostsareexpectedtobeincurredinrestoringthesiteofproduction facilitiesattheendoftheproducinglifeofanoilfield.TheCompanyrecognisesthefullcostofsiterestorationasa 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 endoftheproducinglifeofanoilfieldandareexpectedtobeincurredoveraperiodoftwentyoneyears. An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is causedbythedevelopmentorongoingproductionfromaproducingfield. 411 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 25 Employee Benefit Plans TheCompanyparticipatesindefinedcontributionandbenefitplans,theassetsofwhichareheld(wherefunded)in separately administered funds. Fordefinedcontributionplans,theamountchargedtothestatementofprofitandlossisthetotalamountof contributions payable in the year. Fordefinedbenefitplans,thecostofprovidingbenefitsundertheplansisdeterminedbyactuarialvaluationseparately eachyearforeachplanusingtheprojectedunitcreditmethodbyindependentqualifiedactuariesasattheyearend. Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year. i) Defined contribution plans The Company contributed a total of ` 66 Crore for the year ended 31 March 2023 and ` 60 Crore for the year ended 31 March2022tothefollowingdefinedcontributionplans. 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 Central recognised provident fund (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 49 13 4 66 40 17 3 60 In accordance with the ‘The Employee's Provident Funds and Miscellaneous Provisions Act ,1952', employees are entitledtoreceivebenefitsundertheProvidentFund.Boththeemployeeandtheemployermakemonthlycontributions to the plan at a predetermined rate (12% for the year ended 31 March 2023 and 12% for the year ended 31 March 2022) of an employee’s basic salary, and includes contribution made to Family Pension fund as explained below. 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 chargedtothestatementofprofitandlossintheyeartheyareincurred. Family pension fund The Pension Fund was established in 1995 and is managed by the Government of India. The employee makes no contributiontothisfundbuttheemployermakesacontributionof8.33%ofsalaryeachmonthsubjecttoaspecified ceilingperemployee(includedinthe12%ratespecifiedabove).Thisisprovidedforeverypermanentemployeeonthe 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 thatitmakes,regardlessofwhetherthecentralfundisinsurplusordeficit. Superannuation Superannuation, another pension scheme applicable in India, is applicable only to senior executives. The Company holdsapolicywithLifeInsuranceCorporationofIndia(“LIC”),towhichitcontributesafixedamountrelatingto superannuation and the pension annuity is met by LIC as required, taking into consideration the contributions made. The Company has no further obligations under the scheme beyond its monthly contributions which are charged to the statementofprofitandlossintheyeartheyareincurred. 412 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS National Pension Scheme National Pension Scheme is a retirement savings account for social security and welfare applicable for executives coveredunderthesuperannuationbenefitofVedantaLimited,onachoicebasis.Itwasintroducedtoenableemployees toselectthetreatmentofsuperannuationcomponentoftheirfixedsalariesandavailthebenefitsofferedbyNational Pension Scheme launched by Government of India. Vedanta Limited holds a corporate account with one of the pension fundmanagersauthorizedbytheGovernmentofIndiatowhichtheCompanycontributesafixedamountrelatingto 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 statementofprofitandlossintheyeartheyareincurred. 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 Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulates that the employer shall make good deficiency,ifany,betweenthereturnguaranteedbythestatuteandactualearningoftheFund.Basedonactuarial valuation in accordance with Ind AS 19 and the Guidance note issued by the 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 as at 31 March 2023 and 31 March 2022. Having regard to the assets of the Fund and the return on the investments,theCompanydoesnotexpectanydeficienciesintheforeseeablefuture. The Company contributed a total of ` 8 Crore for the year ended 31 March 2023 and ` 7 Crore for the year ended 31 March 2022. The present value of obligation and the fair value of plan assets of the trust are summarized below. Particulars Fair value of plan assets Presentvalueofdefinedbenefitobligations 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 (b) Gratuity plan (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 283 (282) Nil 262 (257) Nil Year ended 31 March 2023 Year ended 31 March 2022 53% 41% 6% 0% 43% 45% 12% 0% InaccordancewiththePaymentofGratuityAct,1972,theCompanycontributestoadefinedbenefitplan(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 recognisedinfullforthebenefitobligationoverandabovethefundsheldintheGratuityPlan. 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 the Life Insurance Corporation of India (LIC) and ICICI Prudential Life Insurance Company Limited (ICICI). 413 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 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 Presentvalueofdefinedbenefitobligations Net liability arising from defined benefit obligation Year ended 31 March 2023 Year ended 31 March 2022 7.39% 2%-10% 7.16% 2%-10% IALM (2012-14) IALM (2012-14) LIC(1996-98) Ultimate LIC(1996-98) Ultimate (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 159 (252) (93) 151 (228) (77) AmountrecognisedinthestatementofprofitandlossinrespectoftheGratuityplanareasfollows: Particulars Current service cost Net interest cost Components of defined benefit costs recognised in profit or loss (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 23 5 28 21 3 24 Amount recognised in the other comprehensive income in respect of the Gratuity plan are as follows: Particulars Re-measurementofthenetdefinedbenefitobligation:- Actuarial losses arising from demographic adjustments Actuarial losses/ (gains) arising from experience adjustments Actuarial(gains)/lossesarisingfromchangesinfinancialassumptions Losses 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 Benefitspaid Interest cost Actuarial losses/ (gains) arising from changes in assumptions Closing balance (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 0 15 (2) 2 15 1 (1) 22 1 23 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 228 21 (29) 16 16 252 188 21 (16) 13 22 228 414 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Movement in the fair value of Gratuity plan assets is as follows: Particulars Opening balance Contributions received Benefitspaid Re-measurement loss arising from return on plan assets Interest income Closing balance (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 151 24 (25) (2) 11 159 146 12 (16) (1) 10 151 Theaboveplanassetshavebeeninvestedinthequalifiedinsurancepolicies. The actual return on plan assets was ` 9 Crore for the year ended 31 March 2023 and ` 9 Crore for the year ended 31 March 2022. Theweightedaveragedurationofthedefinedbenefitobligationis14.03yearsand15.67yearsasat31March2023and 31 March 2022 respectively. The Company expects to contribute `17Croretothefundeddefinedbenefitplansinduringtheyearended31March 2024. Sensitivity analysis Belowisthesensitivityanalysisdeterminedforsignificantactuarialassumptionsforthedeterminationofdefined benefitobligationsandbasedonreasonablypossiblechangesoftherespectiveassumptionsoccurringattheendof 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% (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (13) 13 13 (13) (11) 11 11 (11) Theabovesensitivityanalysismaynotberepresentativeoftheactualbenefitobligationasitisunlikelythatthechange in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Inpresentingtheabovesensitivityanalysis,thepresentvalueofdefinedbenefitobligationhasbeencalculatedusing the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the definedbenefitobligationliabilityrecognizedinthebalancesheet. 415 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 # Risk analysis TheCompanyisexposedtoanumberofrisksinthedefinedbenefitplans.Mostsignificantriskspertainingtodefined benefitplansandmanagement'sestimationoftheimpactoftheserisksareasfollows: Investment risk The Gratuity plan is funded with the LIC and ICICI. The Company does not have any liberty to manage the fund provided to LIC and ICICI. Thepresentvalueofthedefinedbenefitplanobligationiscalculatedusingadiscountratedeterminedbyreferenceto GovernmentofIndiabonds.Ifthereturnonplanassetisbelowthisrate,itwillcreateaplandeficit. Interest risk A decrease in the interest rate on plan assets will increase the net plan obligation. Longevity risk / Life expectancy Thepresentvalueofthedefinedbenefitplanobligationiscalculatedbyreferencetothebestestimateofthemortality 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 Thepresentvalueofthedefinedbenefitplanobligationiscalculatedbyreferencetothefuturesalariesofplan participants. An increase in the salary of the plan participants will increase the plan obligation. Code on Social Security, 2020 TheCodeonSocialSecurity,2020(‘Code’)relatingtoemployeebenefitsduringemploymentandpost-employment benefitsreceivedPresidentialassentinSeptember2020.TheCodehasbeenpublishedintheGazetteofIndia.However, thedateonwhichtheCodewillcomeintoeffecthasnotbeennotifiedandthefinalrules/interpretationhavenotyet 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. 26 Employee benefits expense a, b Particulars Salaries and Wages Share based payments (Refer note 27) Contributions to provident and other funds (Refer Note 25) Staff welfare expenses Less: Cost allocated/ directly booked in Joint ventures Total a. Net of recoveries of ` 49 Crore (31 March 2022: ` 52 Crore) from subsidiaries. b. Net of capitalisation of ` 34 Crore (31 March 2022: ` 35 Crore). (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 1,244 48 97 106 (569) 926 1,216 29 88 90 (556) 867 416 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 27 Share based payments TheCompanyoffersequitybasedandcashbasedoptionplanstoitsemployees,officersanddirectorsthroughthe Company's stock option plan introduced in 2016 and Cairn India's stock option plan now administered by the Company pursuant to its 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 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 periodwiththeperformanceoftwogroupofcomparatorcompanies(i.e.Indianandglobalcomparatorcompanies)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 2023 and year ended 31 March 2022 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, Free Cash Flows, ESG and Carbon footprint 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 2023 is presented below: Options granted during the year Options transferred (to)/ from Parent/ fellow subsidiaries Options forfeited/ lapsed during the year Options exercised during the year Options outstanding 31 March 2023 Options exercisable 31 March 2023 Options outstanding 01 April 2022 3,23,015 1,14,81,718 18,350 1,08,07,521 19,164 1,13,04,599 16,907 Financial Year of Grant Exercise Period 2018-19 2019-20 2019-20 2020-21 2020-21 2021-22 2021-22 2022-23 01 November 2021 - 30 April 2022 29 November 2022 - 28 May 2023 Cash settled 06 November 2023 - 05 May 2024 Cash settled 01 November 2024 - 30 April 2025 Cash settled 01 November 2025 - 30 April 2026 - - - - - - - - 1,44,37,268 - - 2,81,565 41,450 41,450* - 61,53,328 41,76,303 11,52,087 11,52,087 - - - - - - - 9,740 8,610 - 24,81,770 - 83,25,751 19,164 17,83,209 16,907 9,10,824 - - - - - 95,21,390 - 1,35,26,444 - - 24,888 - - - - - - - 2022-23 Cash settled - 24,888 *Options for some employees could not be exercised within exercise period due to technical issues. 3,39,71,274 1,44,62,156 - 1,13,74,942 44,66,478 3,25,92,010 11,93,537 417 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 The details of share options for the year ended 31 March 2022 is presented below: Financial Year of Grant Exercise Period Options outstanding 01 April 2021 Options granted during the year Options transferred (to)/ from Parent/ fellow subsidiaries 2017-18 2018-19 2018-19 2019-20 2019-20 2020-21 2020-21 2021-22 01 September 2020 - 28 February 2021 01 November 2021 - 30 April 2022 Cash settled 29 November 2022 - 28 May 2023 Cash settled 06 November 2023 - 05 May 2024 3,76,940 99,12,240 99,086 1,35,72,278 80,050 1,27,11,112 Cash settled 87,609 - - - - - - - 01 November 2024 - 30 April 2025 2021-22 Cash settled - - 1,20,83,636 16,907 3,68,39,315 1,21,00,543 Options forfeited/ lapsed during the year Options exercised during the year Options outstanding 31 March 2022 Options exercisable 31 March 2022 23,457 3,53,483 - - 69,06,444 26,82,781 3,23,015 3,23,015 - 99,086 - 20,90,560 61,700 19,03,591 68,445 7,79,037 - - - - - - - 1,14,81,718 18,350 1,08,07,521 19,164 1,13,04,599 16,907 - - - - - - - 1,18,33,234 31,35,350 3,39,71,274 3,23,015 - - - - - - - - - - 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 monthspostthevestingperiodhasnotbeenconsideredastheoptionsareexpectedtobeexercisedimmediatelypostthe completion of the vesting period. 418 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The assumptions used in the calculations of the charge in respect of the ESOS options granted during the year ended 31 March 2023 and 31 March 2022 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) Year ended 31 March 2023 Year ended 31 March 2022 ESOS 2022 ESOS 2021 Cash settled - 24,888 Equity settled - 1,44,37,268 Cash settled - 16,907 Equity settled - 1,20,83,636 ` 1 ` 1 ` 286.90 ` 302.15 3 years 50.95% 3 years 7.11% 7.07% 10% p.a ` 182.46 3 years 49.67% 3 years 6.80% 5.02% 10% p.a ` 193.97 Weighted average share price at the date of exercise of stock options was ` 303.80 (31 March 2022: ` 339.32) Theweightedaverageremainingcontractuallifefortheshareoptionsoutstandingwas1.76years(31March2022:1.62 years). The Company recognised total expenses of ` 85 Crore (31 March 2022: ` 43 Crore) related to equity settled share based payment transactions for the year ended 31 March 2023 out of which ` 33 Crore (31 March 2022: ` 15 Crore) was recovered from group companies. The total (reversal)/ charge recognised on account of cash settled share based plan during the year ended 31 March 2023 is ` (2) Crore (31 March 2022: ` 2 Crore) and the carrying value of cash settled share based compensation liability as at 31 March 2023 is ` 2 Crore (31 March 2022: ` 4 Crore). Employee stock option plans of erstwhile Cairn India Limited: The Company has provided CIESOP share based payment scheme to its employees. CIESOP plan TherearenospecificvestingconditionsunderCIESOPplanotherthancompletionoftheminimumserviceperiodof3years 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 Year ended 31 March 2023 Year ended 31 March 2022 Number of options Weighted average exercise price in ` Number of options Weighted average exercise price in ` Outstanding at the beginning of the year 10,37,641 286.85 33,15,174 287.31 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 Nil Nil 2,66,914 7,70,727 - - NA NA 286.85 286.85 - - Nil Nil 4,83,085 17,94,448 10,37,641 10,37,641 Weighted average share price at the date of exercise of stock options was ` 411.80 (31 March 2022: ` 375.89) NA NA 286.85 287.70 286.85 286.85 419 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Scheme Range of exercise price in ` Weighted average remaining contractual life of options (in years) Weighted average exercise price in ` The details of exercise price for stock options outstanding as at 31 March 2023 are: CIESOP Plan 286.85 - 286.85 The details of exercise price for stock options outstanding as at 31 March 2022 are: CIESOP Plan 286.85 0.31 286.85 Out of the total expense of ` 50 Crore (31 March 2022: ` 30 Crore) pertaining to above options for the year ended 31 March 2023, the Company has capitalised ` 2 Crore (31 March 2022: ` 1 Crore) expense for the year ended 31 March 2023. 28 Revenue from operations Particulars Sale of products Sale of services Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 67,105 88 67,193 62,692 109 62,801 a) Revenue from sale of products and from sale of services for the year ended 31 March 2023 includes revenue from contracts with customers of ` 67,778 Crore (31 March 2022: ` 62,781 Crore) and a net loss on mark-to-market of ` 585 Crore (31 March 2022: gain of ` 20 Crore) on account of gains/ losses relating to sales that were provisionally priced asatthebeginningoftheyearwiththefinalpricesettledinthecurrentyear,gains/lossesrelatingtosalesfullypriced during the year, and marked to market gains/ losses relating to sales that were provisionally priced as at the end of the year. b) 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 containanysignificantfinancingcomponentaspaymenttermsarewithinthreemonths. 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 thatremainedunsatisfied(orpartiallyunsatisfied)atthebalancesheetdate.Further,sincethetermsofthecontracts directly identify the transaction price for each of the completed performance obligations there are no elements of transactionpricewhichhavenotbeenincludedintherevenuerecognisedinthefinancialstatements.Further,thereis no material difference between the contract price and the revenue from contract with customers. 29 Other operating income Particulars Export incentives Scrap sales Miscellaneous income (Refer Note 39(M)) Total 420 Year ended 31 March 2023 Year ended 31 March 2022 194 182 511 887 244 130 102 476 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 30 Other Income Particulars Net gain on investments measured at FVTPL Net gain on sale of long term investments (Refer Note 39) Interestincomefromfinancialassetsatamortisedcost - Bank deposits - Loans - Others Interest on income tax refund Dividend income from - financialassetsatFVOCI - investment in subsidiaries Profitonsaleofassets Deferred government grant income Miscellaneous income Total 31 Changes in inventories of finished goods and work-in-progress Particulars Opening Stock: Finished Goods Work in progress Total Add: Foreign exchange translation Less: Closing Stock Finished Goods Work in progress Total Changes in Inventory 32 Finance Cost Particulars Interestexpenseonfinancialliabilitiesatamortisedcosta Otherfinancecosts Netinterestondefinedbenefitarrangement Unwinding of discount on provisions (Refer note 23) Less: Allocated to Joint venture Less:Capitalisationoffinancecostsb (Refer note 5) Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 44 - 103 64 140 42 0 20,711 - 81 77 21,262 1 16 78 73 69 - 1 7,828 129 78 74 8,347 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 385 3,018 3,403 17 336 2,503 2,839 581 548 1,681 2,229 2 385 3,018 3,403 (1,172) (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 4,405 276 5 30 (1) (331) 4,384 3,123 265 3 24 (2) (267) 3,146 a) b) Includes interest expense on lease liabilities for the year ended 31 March 2023 is ` 6 Crore (31 March 2022: ` 7 Crore). Interest rate of 6.75% (31 March 2022: 7.39%) was used to determine the amount of general borrowing costs eligible for capitalization in respect of qualifying asset for the year ended 31 March 2023. c) Interest expense on income taxes is ` 48 Crore (31 March 2022: ` NIL Crore). 421 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 33 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 translations 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 Donation b Miscellaneous expenses c Less: Cost allocated/directly booked in Joint ventures Total * Net of recoveries of ` 66 Crore (31 March 2022: ` 79 Crore) from subsidiaries (a) Remuneration to auditors comprises: Particulars Payment to auditors For statutory audit (including quarterly reviews) For overseas reporting Forcertificationandotherattestservices For other services For reimbursement of expenses Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 1,675 335 1,032 597 1,342 231 352 90 110 93 21 18 13 315 3 9 435 1 1,884 160 4,024 (418) 1,568 375 908 512 1,359 257 134 67 98 88 - 17 8 - 4 11 233 6 1,472 130 3,135 (331) 12,322 10,051 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 7 1 0 1 0 9 6 4 0 1 0 11 (b) Includes contributions through electoral bonds of ` 155 Crore (31 March 2022: ` 123 Crore). (c) Includes Corporate social responsibility expenses of ` 112 Crore (31 March 2022: ` 37 Crore) as detailed in note 41(a). (d) Rent represents expense on short term/ low value leases. 422 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Year ended 31 March 2023 Year ended 31 March 2022 Exceptional Items Tax effect of exceptional items Exceptional items after tax Exceptional Items Tax effect of exceptional items Exceptional items after tax (` in Crore) 34 Exceptional Items Particulars Property, plant and equipment, exploration intangible assets under development, capital work-in-progress and other assets (impaired)/ reversal or (written off)/ written back in: - Oil and Gas 1) Exploration wells written off a 2) Reversal of previously recorded impairment b,c - Aluminium d - Unallocated 1) Reversal of previously recorded impairment on investments in BFL e 2) Capital work-in-progress written off f 3) Impairment reversal on investments in OCRPS g - 910 (1,412) 1,370 493 (479) - (125) 44 - 910 - 780 - 3,187 - - - - - 780 - 3,187 - (24) - - (54) (73) - 8 - - 19 26 111 (919) 891 (81) - (16) - - - (35) (47) (207) SAED on Oil and Gas sector h (524) 103 (421) Provision for legal disputes (including change in law), force majeure and similar incidences in: - Copper i - Aluminium j Total - - - - - - 4,353 103 4,456 (318) a. During the year ended 31 March 2022, based on the outcome of exploration and appraisal activities in its PSC block RJON-90/1 block and RSC blocks awarded under OALP (Open Acreage Licensing Policy), an amount of ` 1,412 Crore towardsunsuccessfulexplorationcosthadbeenchargedofftothestatementofprofitandlossduringtheprevious year, as these had proven to be either technically or commercially unviable. b. During the year ended 31 March 2023, the Board of Cairn India Holdings Limited (“CIHL”), a wholly owned subsidiary of the Company, approved the scheme of buyback upto US$ 500 mn @ approximately US$ 3.3 per share. Pursuant to the same, CIHL has bought back 10,24,69,151 shares for ` 2,665 Crore (US$ 332 mn). Consequently, the Company has recorded a net gain of ` 910 Crore, on account of: i. Realised loss of ` 630 Crore on account of buy back of investment set off by reversal of previously recorded impairment of ` 813 Crore on investment bought back. ii. An earlier impairment charge of ` 727 Crore has been reversed during the year on remaining investment in CIHL. c. During the year ended 31 March 2022, the Company had recognized an impairment reversal of ` 1,370 Crore on its assets in the oil and gas segment comprising: i) Impairment reversal of ` 1,254 Crore relating to Rajasthan oil and gas block (“CGU”) mainly due to increase in crude price forecast. Of this reversal, ` 850 Crore impairment reversal had been recorded against oil and gas producing facilities and ` 404 Crore impairment charge had been recorded against exploration intangible assets under development. The recoverable amount of the Company’s share in Rajasthan Oil and Gas cash generating unit “RJ CGU” was determined to be ` 5,406 Crore (US$ 715 million) as at 31 March 2022. 423 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 The recoverable amount of the RJ CGU 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 the Company’s view of the assumptions that would be used by a market participant. This was based onthecashflowsexpectedtobegeneratedbytheprojectedoilandnaturalgasproductionprofilesuptothe expected dates of cessation of production sharing contract (PSC)/cessation of production from each producing fieldbasedonthecurrentestimatesofreservesandriskedresources.Reservesassumptionsforfairvalueless 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$ 86 per barrel for the next one year (and tapers down to long-term nominal price of US$ 68 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 9.88% derived from the post- tax weighted average cost of capital after factoring in the risks ascribed to PSC extension including successful implementation of key growth projects. 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 ` 102 Crore (US$ 13 million) and ` 159 Crore (US$ 21 million) respectively. ii. Impairment reversal of ` 116 Crore relating to KG-ONN-2003/1 CGU mainly due to increase in crude price forecast and increase in recoverable reserves. The recoverable amount of the Company’s share in this CGU was determined to be ` 208 Crore (US$ 27 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 short-term oil price of US$ 86 per barrel for the next one year and tapers down to long-term nominal price of US$ 68 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 10.63%. Thesensitivitiesaroundchangeincrudepriceassumptionsanddiscountratearenotmaterialtothefinancial statements. d. In relation to a mine in aluminium business of the Company, the Company had deposited ` 125 Crore with the Government of India. Thereafter, the MoEF&CC and the Supreme Court declared the mining project inoperable on environmental grounds. Later, in 2017, the mining license lapsed. Accordingly, the deposit was fully provided for during the previous year. e. During the year, the Company has recognised an impairment reversal of ` 780 Crore on its investments in Bloom Fountain Limited ("BFL"), a wholly owned subsidiary of the Company, mainly due to restart of commercial mining operations at Western Cluster Limited, Liberia ("WCL"), a wholly owned subsidiary of BFL. During the current year, WCL has signed a Memorandum of Understanding with the Government of Liberia to restart its mining operations and commenced commercial production at its Bomi Mines from July 2022. Consequently, the net recoverable value of assets and liabilities of WCL has been assessed at ` 891 Crore based on the value-in-use approach, using the Discounted Cash Flow Method, a level 3 valuation technique in the fair value hierarchy as it more accurately reflects the recoverable amount. The impairment assessment is based on a range of estimates and assumptions, including long-term selling price as per the consensus report, volumes based on the mine planning and concentrate plant setup and a post-tax nominal discount rate of 14.45%. Any subsequent changes to cash flows due to changes in the above-mentioned factors could impact the carrying value of the assets. Based on the sensitivities carried out by the Company, a decrease in the long-term selling price by 1% would lead to a decrease in the recoverable value by ` 50 Crore and an increase in the discount rate by 1% would lead to a decrease in the recoverable value by ` 74 Crore. f. During the previous year ended 31 March 2022, the Company had recognised a loss of ` 24 Crore relating to certain items of capital work-in-progress at one of its closed unit in Gujarat, which were no longer expected to be used. 424 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS g. During the current year ended 31 March 2023, the Company has recognised an impairment reversal of ` 3,187 Crore on the investments in OCRPS (“Optionally Convertible Redeemable Preference Shares”) of THL Zinc Ventures Limited (“THLZVL”), a wholly owned subsidiary of the Company. Recoverable amount of the OCRPS has been determined based on the valuation of Zinc International business (“VZI”) which is an indirect subsidiary of THLZVL. The recoverable amount of VZI has been determined based on the fair value less cost of disposal approach, using the discounted cash flow method (“DCF method”), a level 3 valuation technique in the fair value hierarchy. This is based on the cash generated by the extraction and sale of proved and probable reserves/ natural estimated resources which are yet to be exploited during the estimated predetermined life of mine (“LOM”) after deducting costs of closure and rehabilitation after expiry of LOM. The cash flows are discounted using the post tax weighted average cost of capital ranging 8.40% to 10.44%. Based on the sensitivities carried out by the Company using the risk adjustment factor of 5%, the recoverable amount is higher than the carrying value, resulting in impairment reversal. TheseinvestmentshasbeenreclassifiedfromNon-currentinvestmentstocurrentinvestmentsduringthecurrentyear (Refer Note 6). h. TheGovernmentofIndia("GoI")videitsnotificationdated30June2022leviedSpecialAdditionalExciseDuty("SAED") on production of crude oil, i.e., cess on windfall gain triggered by increase in crude oil prices which is effective from 01 July 2022. The consequential net impact of the said duty has been presented as an exceptional item. i. j. A provisional liquidator (‘PL’) was appointed to manage the affairs of Konkola Copper Mines plc (KCM) on 21 May 2019, after ZCCM Investments Holdings Plc (ZCCM-IH), an entity majority owned by the Government of Zambia and a 20.6% shareholderinKCM,filedawindinguppetitionagainstKCM.KCM’smajorityshareholder,VedantaResourcesHoldings Limited (VRHL), and its parent company, Vedanta Resources Limited (VRL), are contesting the winding up petition in the Zambian courts and have also commenced arbitration against ZCCM-IH, consistent with their position that arbitration is the agreed dispute resolution process, together with an application to the South African courts to stay the winding up proceedings consistent with the agreement to arbitrate. Meanwhile, KCM has not been supplying goods to the Company and/ or its subsidiaries, which it was supposed to as per the terms of the advance. During the previous year, the Company recognised provisions for expected credit losses of ` 54 Crore. As of 31 March 2023, the Company carries provisions of ` 105 Crore (31 March 2022: ` 105 Crore). Consequently, receivables from KCM as at 31 March 2023 is ` Nil Crore (31 March 2022: ` Nil Crore). InDecember2021,MoEF&CCnotifiedguidelinesforthermalpowerplantsfordisposalofflyashandbottomash producedduringpowergenerationprocess.Effective01April2022,thenotificationintroducedathree-yearcycleto achieveaverageashutilisationof100percent.Thefirstthree-yearcycleisextendablebyanotheroneyearortwo years where ash utilisation percentage is in the range of 60-80 per cent or less than 60 per cent, respectively. Further, unutilisedaccumulatedash,i.e.,legacyflyashstoredwithsuchpowerplantspriortothedateofthisnotification isrequiredtobeutilizedfullyoveratenyearperiodwithminimumtwentypercent,thirtypercentandfiftypercent utilisation of annual ash generation in year 1, year 2 and years 3-10 respectively. Such provisions are not applicable where ash pond or dyke has stabilised and the reclamation has taken place with greenbelt or plantation. The Company hadperformeddetailedevaluationsforitsobligationsunderthisnotificationandhadrecorded` 73 Crore as an exceptional item for the year ended 31 March 2022, towards estimated costs of legacy fly ash utilization including reclamation costs. 425 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 35 Tax expense (a) Tax(benefit)/chargerecognisedinprofitorloss(includingonexceptionalitems) Current tax: Currenttaxexpenseonprofitfortheyear Currenttaxbenefit-exceptionalitems(ReferNote34) Total Current Tax (a) Deferred tax: Origination and reversal of temporary differences (Benefit)/Chargeinrespectofexceptionalitems(ReferNote34) Total Deferred Tax (b) Net tax (benefit)/ charge (a+b) Profit before tax Effective income tax rate (%) Tax expense Particulars Taxbenefitonexceptionalitems Tax(benefit)/expense-others Net tax (benefit)/ charge (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 3,790 (50) 3,740 (4,033) (53) (4,086) (346) 27,010 (1%) 3,505 (281) 3,224 (1,023) 170 (853) 2,371 19,616 12% (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (103) (243) (346) (111) 2,482 2,371 (b) Areconciliationofincometax(benefit)/expenseapplicabletoprofitbeforetaxattheIndianstatutoryincometaxrate torecognisedincometax(benefit)/expensefortheyearindicatedareasfollows: Particulars Profit before tax Indian statutory income tax rate Tax at statutory income tax rate Non-taxable income Deduction u/s 80M Tax holidays Unrecognised tax assets in respect of earlier years (net) Change in deferred tax balances due to change in tax law Capital gains/ Other income subject to lower tax rate* Other permanent differences Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 27,010 34.944% 9,438 - (7,254) (355) (1,707) 16 (505) 21 (346) 19,616 34.944% 6,855 (4) (2,736) (1,702) - (71) - 29 2,371 *On account of dividend received from foreign subsidiary taxable at lower rate of 17.472%. CertainbusinessesoftheCompanyareeligibleforspecifiedtaxincentiveswhichareincludedinthetableaboveastax holidays and similar exemptions. These are briefly described as under: Sectoral Benefit - Power Plants To encourage the establishment of certain power plants, provided certain conditions are met, tax incentives exist to exempt100%ofprofitsandgainsforanytenconsecutiveyearswithinthe15yearsperiodfollowingcommencementof 426 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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. TheCompanyhassetup80IAoperationsataluminiumdivisionandironoredivisionwheresuchbenefithas been drawn. (c) Deferred tax assets/ liabilities TheCompanyhasaccruedsignificantamountsofdeferredtax.Themajorityofthedeferredtaxassetsrepresents unused tax credit in the form of MAT credits carried forward, net of deferred tax liability representing accelerated taxreliefforthedepreciationofproperty,plantandequipment.Significantcomponentsofdeferredtax(assets)and liabilities recognised in the balance sheet are as follows : For the year ended 31 March 2023 Opening balance as at 01 April 2022 Charged/ (credited) to statement of profit and loss Charged/ (credited) to other comprehensive income Exchange difference transferred to translation of foreign operation Charged/ (credited) to equity Closing balance as at 31 March 2023 (` in Crore) Significant components of Deferred tax (assets) and liabilities Property, Plant and Equipment Voluntary retirement scheme Employeebenefits Fair valuation of derivative asset/ liability Fair valuation of other asset/ liability MAT credit entitlement Other temporary differences Total 4,327 410 1 8 (23) (36) - (4) - - (4,839) (556) (4,345) (147) (1,118) (4,086) - - (6) (52) - - (31) (89) (9) - - - - - - (9) - - 7 - - - - 7 4,728 1 5 (75) (36) (9,184) (734) (5,295) (` in Crore) For the year ended 31 March 2022 Significant components of Deferred tax (assets) and liabilities Property, Plant and Equipment Voluntary retirement scheme Employeebenefits Fair valuation of derivative asset/liability Fair valuation of other asset/liability MAT credit entitlement Other temporary differences Total Opening balance as at 01 April 2021 Charged/ (credited) to statement of profit and loss Charged/ (credited) to other comprehensive income Exchange difference transferred to translation of foreign operation Charged/ (credited) to equity Closing balance as at 31 March 2022 3,848 471 - 15 (23) (36) 1 (9) - (0) (3,701) (436) (1,122) (194) (333) (853) - - (8) 0 - - 74 66 8 - - - - - - 8 - - 10 - - (16) - 4,327 1 8 (23) (36) (4,839) (556) (6) (1,118) Recognition of deferred tax assets on MAT credit entitlement is based on the Company's present estimates and businessplansasperwhichthesameisexpectedtobeutilisedwithinthestipulatedfifteenyearperiodfromthedate of origination. (Refer Note 3(c)(A)(ii)) 427 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 (d) Non- current tax assets Non- current tax assets of ` 1,311 Crore (31 March 2022: ` 1,800 Crore) mainly represents income tax receivable from Indian tax authorities by the Company 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. 36 Earnings per equity share (EPS) Particulars ProfitaftertaxattributabletoequityshareholdersforBasicandDilutedEPS Weighted Average no. of equity shares outstanding during the year for Basic and Dilutive EPS (in Crore) Basic and Diluted Earnings per share (in `) Nominal value per share (in `) 37 Dividends Particulars Amounts recognised as distributions to equity shareholders: Interim dividends: `101.50/- per share (31 March 2022: ` 45/- per share) Refund of Dividend distribution tax Total 38 Commitments, contingencies and guarantees A) Commitments (` in Crore, except otherwise stated) Year ended 31 March 2023 Year ended 31 March 2022 27,356 372 73.54 1.00 17,245 372 46.36 1.00 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 37,658 (86) 37,572 16,689 - 16,689 TheCompanyhasanumberofcontinuingoperationalandfinancialcommitmentsinthenormalcourseofbusiness 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 and Gas sector Cairn Aluminium sector LanjigarhRefinery(PhaseII) 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 428 (` in Crore) As at 31 March 2023 As at 31 March 2022 750 1,211 2,439 1,266 3,066 721 8,242 2,861 1,577 3,051 929 9,629 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Committed work programme (Other than capital commitment) Particulars Oil and Gas sector (` in Crore) As at 31 March 2023 As at 31 March 2022 Cairn (OALP - New Oil and Gas blocks) 5,184 5,615 Other Commitments (i) The 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%) atvariablecostaspertheconditionsreferredtoinPPA.ThePPAhasatenureoftwentyfiveyears,expiringin FY 2037. The Company received favourable order from OERC dated 05 October 2021 for conversion of Independent Power Plant ("IPP") to Captive Power Plant ("CPP") w.e.f from 01 January 2022 subject to certain terms and conditions. However, OERC vide order dated 19 February 2022 directed the Company to supply power to GRIDCO from 19 February 2022 onwards. Thereafter, the Company has resumed supplying power to GRIDCO from 01 April 2022 as per GRIDCO’s requisition. The OERC vide its order dated 03 May 2023 has reviewed its previous order dated05October2021anddirectedtheCompanytooperateUnit2asanIPP.TheCompanyisinprocessoffiling an appeal against the said order. (ii) During the current year ended 31 March 2023, the Company has executed new Power Delivery Agreements ("PDA") with Serentica group companies (Serentica Renewables India 3 Private Limited, Serentica Renewables India 6 Private Limited and Serentica Renewables India 9 Private Limited), which are associates of Volcan, for procuring renewablepowerovertwentyfiveyearsfromdateofcommissioningofthecombinedrenewableenergypower projects (“the Projects”) on a group captive basis. These Serentica group companies were incorporated for building the Projects of approximately 691 MW (31 March 2022: 180 MW). During the current year, the Company has invested ` 69 Crore in Optionally Convertible Redeemable Preference shares (“OCRPS”) of ` 10 each, of Serentica group companies. These OCRPS will be converted into equity basis conversion terms of the PDA, resulting in the Company holding twenty six percent stake in its equity. As at 31 March 2023, total outstanding commitments related to PDA with Serentica group companies are ` 605 Crore (31 March 2022: ` 230 Crore). B) Guarantees The aggregate amount of indemnities and other guarantees on which the Company does not expect any material losses was ` 16,899 Crore (31 March 2022: ` 17,046 Crore). The Company has given guarantees in the normal course of business as stated below: a) Guarantees and bonds advanced to the customs authorities in India of ` 1,304 Crore relating to the export and payment of import duties on purchases of raw material and capital goods (31 March 2022: ` 470 Crore). b) Guarantees issued for the Company’s share of minimum work programme commitments of ` 2,742 Crore (31 March 2022: ` 2,881 Crore). c) Guarantees of ` 65 Crore (31 March 2022: ` 61 Crore) issued under bid bond. d) Bank guarantees of ` 115 Crore (31 March 2022: ` 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. e) The Company has given corporate guarantees, bank guarantees and also assigned its bank limits to other group companies primarily in respect of certain short-term and long-term borrowings amounting to ` 9,603 Crore (31 March 2022: ` 11,631 Crore) (Refer Note 39). f) Other guarantees worth ` 3,070 Crore (31 March 2022: ` 1,888 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. 429 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 C) Export Obligations The Company has export obligations of ` 1,262 Crore (31 March 2022: ` 831 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. In the event of the Company’s inability to meet its obligations, the Company’s liability would be ` 307 Crore (31 March 2022: ` 192 Crore) reduced in proportion to actual exports, plus applicable interest. The Company has given bonds of ` 367 Crore (31 March 2022: ` 224 Crore) to custom authorities against these export obligations. D) Contingent Liabilities The Company discloses the following legal and tax cases as contingent liabilities: a) Ravva Joint Operations arbitration proceedings The Ravva Production Sharing Contract (PSC) obliges the contractor parties (including the Company (Cairn India Limited which subsequently merged with the Company, accordingly now referred to as the Company)) 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 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 the 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. GOIthenfiledanappealatFederalCourtofMalaysia.Thematterwasheardon28February2019andtheFederal CourtalsodismissedGOI’sleavetoappeal.CompanyhasalsofiledfortheenforcementofthePartialAwardand Final Award before the Hon'ble Delhi High Court. The matter is currently being heard. 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, the Company would be liable for approximately ` 526 Crore (US$ 64 million) plus interest (31 March 2022: ` 484 Crore (US$ 64 million) plus interest). b) Proceedings related to the imposition of entry tax TheCompanychallengedtheconstitutionalvalidityofthelocalstatutesandrelatednotificationsinthestatesof 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 heard the matters and remanded the entry tax matters relating to the issue of discrimination against domestic goods bought from otherStatestotherespectiveHighCourtsforfinaldeterminationbutretainedtheissueofjurisdictionforlevyon imported goods, for determination by the regular bench of the Supreme Court. Following the order of the Supreme Court,theCompanyfiledwritpetitionsinrespectiveHighCourts. 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 430 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 movementofgoodsintoSEZbasedonthedefinitionof‘localarea’undertheOdishaEntryTaxActwhichisvery 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 (net of provisions made) are ` 774 Crore (31 March 2022: ` 774 Crore) including interest and penalty till the date of order. Further, interest and penalty if any, would be additional. c) Miscellaneous disputes- Income tax The Company is involved in various tax disputes amounting to ` 543 Crore (31 March 2022: ` 543 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, disallowanceoftaxholidaybenefitonproductionofgasundersection80IBoftheIncomeTaxAct,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. d) Miscellaneous disputes- Others The Company is subject to various claims and exposures which arise in the ordinary course of conducting and financingitsbusinessfromtheexcise,indirecttaxauthoritiesandothers.Theseclaimsandexposuresmostly 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 ` 2,733 Crore (31 March 2022: ` 2,500 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. Except as described above, there are no pending litigations which the Company believes could reasonably be expectedtohaveamaterialadverseeffectontheresultsofoperations,cashflowsorthefinancialpositionofthe Company. 39 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 Vedanta Resources Limited Finsider International Company Limited (a) Richter Holdings Limited (a) Twin Star Holdings Limited (a) Vedanta Resources Cyprus Limited (a) Vedanta Resources Finance Limited (a) Vedanta Resources Holdings Limited (a) Welter Trading Limited (a) Westglobe Limited (a) Vedanta Holdings Mauritius II Limited (a) Vedanta Holdings Mauritius Limited (a) Vedanta Holdings Jersey Limited (a) Vedanta Netherlands Investments BV (a) Vedanta UK Investments Limited (a) 431 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 B) Fellow Subsidiaries (with whom transactions have taken place) Sterlite Grid 16 Limited Sterlite Iron and Steel Company Limited Sterlite Power Transmission Limited Sterlite Technologies Limited STL Digital Limited Twin Star Technologies Limited C) Associates of ultimate parent (with whom transactions have taken place) Serentica Renewables India 3 Private Limited (f) Serentica Renewables India 6 Private Limited (f) Serentica Renewables India 9 Private Limited (f) D) Associates and Joint ventures (With whom transaction have taken place) Gaurav Overseas Private Limited E) Subsidiaries Amica Guesthouse (Proprietary) Limited Athena Chhattisgarh Power Limited (d) 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 Gujarat Block 1 Limited (b) Cairn Energy Hydrocarbons Limited Cairn India Holdings Limited Cairn Lanka (Private) Limited CIG Mauritius Private Limited (b) CIG Mauritius Holdings Private Limited (b) Copper Mines of Tasmania (Proprietary) Limited Desai Cement Company Private Limited ESL Steel Limited Facor Realty and Infrastructure Limited (b) Ferro Alloys Corporation Limited (e) Facor Power Limited (e) Fujairah Gold FZC Goa Sea Port Private Limited (g) Hindustan Zinc Alloys Private Limited Hindustan Zinc Fertilisers Private Limited (c) Hindustan Zinc Limited Killoran Lisheen Mining Limited 432 Lakomasko BV (b) Lisheen Milling Limited Lisheen Mine Partnership Malco Energy Limited Maritime Ventures Private Limited (g) Monte Cello BV Namzinc (Proprietary) Limited Paradip Multi Cargo Berth Private Limited (g) Sesa Mining Corporation Limited (g) Sesa Resources Limited Skorpion Mining Company (Proprietary) Limited Skorpion Zinc (Proprietary) Limited Sterlite Ports Limited (g) Talwandi Sabo Power Limited Thalanga Copper Mines (Proprietary) Limited THL Zinc Holding BV THL Zinc Limited THL Zinc Namibia Holdings (Proprietary) Limited THL Zinc Ventures Limited Vedanta Lisheen Holdings Limited Vedanta Lisheen Mining Limited Vedanta Zinc Football & Sports Foundation Vizag General Cargo Berth Private Limited Western Cluster Limited Zinc India Foundation (c) F) Post retirement benefit plans (with whom transactions have taken place) Sesa Group Employees Provident Fund Sesa Group Employees Gratuity Fund and Sesa Group Executives Gratuity Fund Sesa Group Executives Superannuation Scheme Fund G) Others (with whom transactions have taken place) Enterprises over which key management personnel/ their relatives have control or significant influence. Anil Agarwal Foundation Trust Cairn Foundation Caitlyn India Private Limited Janhit Electoral Trust Radha Madhav Investments Private Limited RunayaRefiningLLP Sesa Community Development Foundation Vedanta Foundation Vedanta Medical Research Foundation Vedanta Limited ESOS Trust VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS a. These entities are subsidiary companies of VRL and VRL through its subsidiaries holds 68.11% in the Company. b. c. Liquidated during the current year. Incorporated during the current year. d. Acquired during the current year (Refer note 3(d)). e. f. Facor Power Limited (“FPL”) merged into Ferro Alloys Corporation Limited (“FACOR”), effective 21 November 2022 (Refer Note 3(d)). During the current year, due to change in shareholding of the intermediate holding company of Serentica group companies, the relationship of Vedanta group with these companies has changed from fellow subsidiaries to associates of Volcan. g. Refer Note 41(c) 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 % ofthevotingrightsofVRL.Volcanis100%beneficiallyownedandcontrolledbytheAnilAgarwalDiscretionaryTrust ("Trust"). Volcan Investments Limited, Volcan Investments Cyprus Limited and other intermediate holding companies exceptVRLdonotproduceGroupfinancialstatements. H) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identifiedbyoronbehalfoftheCompany(UltimateBeneficiaries).TheCompanyhasnotreceivedanyfundfromany party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in otherpersonsorentitiesidentifiedbyoronbehalfoftheCompany(UltimateBeneficiaries)orprovideanyguarantee, securityorthelikeonbehalfoftheUltimateBeneficiaries. I) For the year ended 31 March 2023 Particulars Income : (i) (ii) a) b) c) d) e) Revenue from operations Other Income Interest and guarantee commission Dividend income Brand License and Strategic Service Fees M Outsourcing service fees Miscellaneous income Expenditure and other transactions : (i) (ii) Purchase of goods/ services P Stock options expenses/ (recovery) (iii) Allocation of Corporate Expenses (iv) Management and Brand Fees M (v) Reimbursement for other expenses (net of recovery) (vi) Corporate Social Responsibility expenditure/ Donation Entities controlling the company/ Fellow Subsidiaries Associates Subsidiaries Others Total (` in Crore) 1,602 28 0 - 5 - 11 - - 1,701 (2) - - - - - - - - - - - - - 1,432 100 20,711 318 - 0 656 33 115 - (75) - 6 - - - - 1 72 - - - (2) 64 3,040 128 20,711 318 5 1 739 33 115 1,701 (79) 64 433 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Entities controlling the company/ Fellow Subsidiaries Associates Subsidiaries Others Total (` in Crore) Particulars (vii) ContributiontoPostretirementemployeebenefit trust (viii) (Purchase)/Saleoffixedassets (ix) Dividend paid - To Holding companies - To key management personnel and their relatives - To Non executive directors and their relatives (x) Commission/ Sitting Fees - To Non executive directors - To other key management personnel - To relatives of key management personnel - (18) 26,170 - - - - - (xi) Interest and guarantee commission expense Q 157 (xii) Miscellaneous expenses Transactions during the year : (i) (ii) (iii) (iv) (v) Financial guarantees given Financial guarantees relinquished Loans given during the year Loans repaid during the year K Investments made during the year (refer note 38) (vi) Buy back made by subsidiary during the year (refer note 34(b)) (vii) Long term borrowings taken during the year Balances as at year end : (i) (ii) Trade Receivables Loans given O (iii) Long term borrowings - - - - - - - - 11 - - (iv) Other receivables and advances (including brand 1,488 fee prepaid) M, Q (v) Trade Payables (vi) Other payables (including brand fee payable) M, N (vii) Financial guarantee given (viii) Banking Limits assigned/utilised to/for group companies L (ix) Sitting fee, commission and consultancy fees payable - To Non executive directors - To key management personnel (x) Dividend payable - To Holding companies - To key management personnel and their relatives - To Non executive directors and their relatives 21 244 - 115 - - 4,887 - - 434 - - - - - - - - - - - - - - 1 - - - - - 9 - - - - - - - - - - 14 - - - - - - 46 9 1,174 (3,298) 543 431 - 2,665 1,084 220 630 1,109 1,139 33 46 9,541 62 - - - - - 8 - 0 2 0 5 0 0 - - - - - 125 69 - - - 53 - 33 15 18 - - 3 0 0 1 0 8 (4) 26,170 2 0 5 0 0 203 9 1,174 (3,298) 543 556 70 2,665 1,084 231 683 1,109 2,669 69 308 9,541 177 3 0 4,887 1 0 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Remuneration of key management personnel Particulars Short-termemployeebenefits Postemploymentbenefits* Share based payments Total (` in Crore) For the Year ended 31 March 2023 36 1 4 41 *Doesnotincludetheprovisionmadeforgratuityandleavebenefits,astheyaredeterminedonanactuarialbasisforallthe employees together. J) For the period ended 31 March 2022 Entities controlling the company/ Fellow Subsidiaries Associates Subsidiaries Others Total (` in Crore) Particulars Income : (i) (ii) a) b) c) d) Revenue from operations Other Income Interest and guarantee commission Dividend income Outsourcing service fees Miscellaneous income Expenditure and other transactions : (i) (ii) Purchase of goods/ services Stock options expenses/ (recovery) (iii) Allocation of Corporate Expenses (iv) Management and Brand Fees M (v) Reimbursement for other expenses (net of recovery) (vi) Corporate Social Responsibility expenditure/ Donation (vii) ContributiontoPostretirementemployeebenefit trust (viii) Sale/(Purchase)offixedassets (ix) Dividend paid - To Holding companies - To key management personnel - To relatives of key management personnel (x) - To Non executive directors and their relatives - To Non executive directors - To other key management personnel 1,176 11 1 4 - 75 - - 1,294 (0) - - - 11,346 - - - - (xi) Interest and guarantee commission expense Q 127 (xii) Miscellaneous expenses Transactions during the year : (i) (ii) Financial guarantees given Financial guarantees relinquished (iii) Loans given during the year (iv) Loans repaid during the year K (v) Investments made/ (redeemed) during the year (vi) Short-term borrowings taken/ (repaid) during the year - - 1 0 - - - - - - - - - - - - - - - - - - - - - - - - - - - 0 - 1,831 103 7,828 - 16 682 (15) 131 - (45) - - (96) - - - - - 51 7 5,106 4,524 383 567 (0) (200) 2 - - - 1 46 - - - (0) 15 8 - 6 0 1 4 1 - - - - - 99 - - 3,009 114 7,829 4 17 803 (15) 131 1,294 (45) 15 8 (96) 11,352 0 1 4 1 178 7 5,106 4,525 383 666 0 (200) 435 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Particulars Balances as at year end : (i) (ii) Trade Receivables Loans given O (iii) Other receivables and advances (including brand fee prepaid) M, Q (iv) Trade Payables (v) Other payables (vi) Financial guarantee given (vii) Banking Limits assigned/utilised to/for group companies L (viii) Sitting fee, commission and consultancy fees payable - To Independent directors - To key management personnel Remuneration of key management personnel Particulars Short-termemployeebenefits Postemploymentbenefits* Share based payments Total Entities controlling the company/ Fellow Subsidiaries Associates Subsidiaries Others Total (` in Crore) 10 - 145 48 123 - 115 - - - - 9 - - - - - - 27 518 224 9 34 11,569 62 - - - 178 2 17 20 - - 3 0 37 696 380 74 177 11,569 177 3 0 (` in Crore) For the Year ended 31 March 2022 34 1 1 36 *Doesnotincludetheprovisionmadeforgratuityandleavebenefits,astheyaredeterminedonanactuarialbasisforallthe employees together. K) The Company reduced its loan receivable from Vedanta Limited ESOS Trust by ` 125 Crore (31 March 2022: ` 99 Crore) on exercise of stock options by employees. L) Bank guarantee given by the Company 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. M) TheCompanyhasa Brandlicenseandstrategicservicefeeagreement(“theAgreement”)withVedantaResources Limited ("VRL") for the use of brand ‘Vedanta’ and providing strategic services which envisaged payment to VRL at 2% ofturnoveroftheCompany.Duringthepreviousyear,theAgreementwasextendedforafurtherperiodoffifteenyears. The Company has recorded an expense of ` 1,344 Crore (31 March 2022: ` 1,236 Crore) for the year ended 31 March 2023. Further, during the current year, based on updated benchmarking analysis conducted by independent experts, the brand license and strategic service fee has been re-negotiated at 3% of the turnover of the Company with effect from 01 April 2023. The Company generally pays such fee in advance, based on its estimated annual turnover. During the current year, the Company executed a sub-licensing agreement for its existing Brand License and Strategic Services Fee agreement with VRL consequent to which it has sub-licensed the brand license and strategic services to its subsidiary HZL with effect from 01 October 2022. Based on independent benchmarking analysis, an annual fee of 2% of HZL's annual consolidated turnover has been agreed, of which 1.70% would be passed on as a sub-licensing fee to VRL. Consequently, the Company has recognised an income of ` 318 Crore and an expense of ` 270 Crore for the year ended 31 March 2023. N) During the year ended 31 March 2021, the Directorate General of Foreign Trade (“DGFT”) has issued scrips worth ` 216 Crore to the Company under the Target Plus Scheme (“TPS”) that must be utilised by February 2023. Out of these, scrips amounting to ` 48 Crore and ` 3 Crore has been allocated to HZL and BALCO, respectively and corresponding 436 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS liabilities to HZL and BALCO has been recorded in the books of the Company. As at 31 March 2023, scrips of ` 28 Crore and ` 3 Crore are yet to be utilised with respect to HZL and BALCO, respectively. As the TPS license has expired, the Company has created a provision against these scrips and written back its payable to HZL and BALCO. O) During the current year ended 31 March 2023, the Company has renewed loan provided to Sterlite Iron and Steel Company Limited for a further period of 12 months. The loan balance as at 31 March 2023 is ` 5 Crore (31 March 2022: ` 5 Crore). The loan is unsecured in nature and carries an interest rate of 11.13% per annum. The loan including accrued interest thereon have been fully provided for in the books of the Company. P) During the current year ended 31 March 2023, the Company executed an agency contract with VRL pursuant to which, the Company procured calcined alumina amounting to ` 735 Crore on which an agency commission of ` 4 Crore was paid to VRL. Q) VedantaResourcesLimited(“VRL”),asaparentcompany,hasprovidedfinancialandperformanceguaranteetothe Government of India for erstwhile Cairn India group’s (“Cairn”) obligations under the Production Sharing Contract (‘PSC’)providedforonshoreblockRJ-ON-90/1,formakingavailablefinancialresourcesequivalenttoCairn’ssharefor its obligations under the PSC, personnel and technical services in accordance with industry practices and any other resourcesincaseCairnisunabletofulfilitsobligationsunderthePSC. Similarly,VRLhasalsoprovidedfinancialandperformanceguaranteetotheGovernmentofIndiafortheCompany’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. As a consideration for the guarantee with respect to the PSC, the Company pays an annual charge of 1.2% of net exploration and development spend, subject to a minimum annual fee of ` 41 Crore (US$ 5 million), in ratio of participating interests held equally by the Company and its step-down subsidiary, Cairn Energy Hydrocarbons Ltd (“CEHL”). As regards the RSC, the Company paid a one-time charge of ` 183 crore (US$ 25 million), i.e., 2.5% of the total estimated cost of initial exploration phase of approx. ` 7,330 Crore (US$ 1 billion), in the year ended 31 March 2021, and pays an annual charge of 1% of spend, subject to a minimum fee of ` 80 Crore (US$ 10 million) and maximum fee of ` 160 Crore (US$ 20 million) per annum. Accordingly, the Company has recorded a guarantee commission expense of ` 157 Crore (US$ 20 million) (31 March 2022: ` 127 Crore (US$ 17 million)) for the year ended 31 March 2023 and ` 75 Crore (US$ 9 million) (31 March 2022: ` 126 Crore (US$ 17 million)) is outstanding as a pre-payment as at 31 March 2023. 40 Subsequent events There are no other material adjusting or non-adjusting subsequent events, except as already disclosed. 41 (a) The Company has incurred gross amount of ` 227 Crore (31 March 2022: ` 138 Crore) towards Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013: Particulars Year ended 31 March 2023 Year ended 31 March 2022 In- Cash Yet to be Paid in Cash In- Cash Yet to be Paid in Cash (` in Crore) (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 112 142 - 94 94 37 138 - 126 126 - 32 32 * includes ` 64 Crore (31 March 2022: ` 15 Crore) paid to related party (Refer note 39) - 12 12 437 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 Amount of expense excess spent Particulars Opening Balance Amount spent during the year Amount required to be spent during the year Closing Balance* (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 101 126 (112) 115 - 138 (37) 101 *Excess spent at the end of the year is recognised as asset in the balance sheet which is proposed to be offset against future spend obligations Balance of CSR provision/ CSR expenses not yet paid in cash Particulars Opening Balance Provision made during the year Payments made during the year Closing Balance Nature of CSR Expenses Particulars Health and sanitation Infrastructure development Education sports and culture Covid support and others Utilisation of opening excess spent Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 12 126 (106) 32 18 138 (144) 12 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 19 55 33 19 101 227 14 7 17 100 - 138 (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 (ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting 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 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 203 15 - - - - 186 9 - - - - 438 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (c ) Loans and Advance(s) in the nature of Loan (Regulations 34 (3) and 53 (f) read together with Para A of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements), 2015 and Section 186(4) of the Companies Act, 2013): Name of the Company Relationship Balance as at 31 March 2023 Maximum Amount Outstanding during the year (` in Crore) Balance as at 31 March 2022 Sesa Resources Limited ("SRL") Sterlite Ports Limited ("SPL") 2 Wholly owned Subsidiary Wholly owned Subsidiary Sesa Mining Corporation Limited (SMCL") 2 Wholly owned Subsidiary ESL Steel Limited ("ESL") Subsidiary Talwandi Sabo Power Limited ("TSPL") Wholly owned Subsidiary Ferro Alloys Corporation Limited Subsidiary (Refer Note 3(d)) Malco Energy Limited Wholly owned Subsidiary Vizag General Cargo Berth Private Limited ("VGCB") Wholly owned Subsidiary Paradip Multi Cargo Berth Private Limited ("PMCB")2 Wholly owned Subsidiary - - 8 132 - 22 449 19 - 85 4 27 258 75 22 455 19 0 74 4 20 158 75 22 147 19 0 1 None of the loanee have made, per se, investment in the shares of the Company. 2 3 4 The Mumbai NCLT and Chennai NCLT has passed orders dated 06 June 2022 and 22 March 2023 respectively sanctioning the scheme of amalgamation of SPL, PMCB, Maritime Ventures Private Limited ("MVPL"), Goa Sea Port PrivateLimited("GSPL"),whollyownedsubsidiaries/stepdownsubsidiariesofSRL,withSMCL.Statutoryfiling with MCA is in progress. Pre merger, investments made by SPL in MVPL - 10,000 equity shares and GSPL - 50,000 equity shares Investments made by SRL in SMCL - 11,50,000 equity shares, Goa Maritime Private Limited - 5,000 Shares, SPL - 2,50,000 shares and PMCB - 10,000 shares Investment made by SMCL in Desai Cement Company Private Limited - 18,52,646 shares The above loans have been given for business purpose. Details of investments made and guarantees provided are given in Note 6 and Note 38B, respectively. (d) The Company does not have any material transactions with companies struck off as per the Companies Act, 2013. (e) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property. (f) TheCompanyhasnotbeendeclaredwilfuldefaulterbyanybankorfinancialinstitutionorotherlender. (g) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. (h) TheCompanyhasnottradedorinvestedinCryptocurrencyorVirtualcurrencyduringthefinancialyear. (i) The Company has no any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). 439 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 42 Financial ratios are as follows: Ratio 1 2 3 4 5 6 7 8 9 Current Ratio (in times) Debt-Equity Ratio (in times) a Debt Service Coverage Ratio (in times) b Return on Equity Ratio (%) c Inventory turnover Ratio (in times) Trade Receivables turnover Ratio (in times) Trade payables turnover Ratio (in times) Net capital turnover Ratio (in times) NetprofitRatio(%) 10 Return on Capital employed (%) d 11 Return on investment (%) e *Net working capital is negative Formulae for computation of ratios is as follows: Ratio Formula As at 31 March 2023 As at 31 March 2022 % Variance 0.68 0.62 2.76 31% 6.92 22.90 10.33 * 34% 6% 0.80 0.47 1.93 23% 6.41 22.42 10.35 * 28% 14% 3.71% 0.06% -15% 31% 43% 38% 8% 2% 0% * 20% -57% 6041% Current Ratio (in times) Current Assets/ Current Liabilities (excluding current maturities of long-term borrowing) Debt-Equity Ratio (in times) Gross Debt/ Total Equity Debt Service Coverage Ratio (in times) Income available for debt service/ (interest expense and principal payments oflongtermloans),whereincomeavailablefordebtservice=Profitbefore exceptional items and tax + Depreciation, depletion and amortization expense + Interest expense Return on Equity Ratio (%) NetProfitaftertaxbeforeexceptionalitems(netoftax)/AverageEquity Inventory turnover Ratio (in times) Revenue from operations less EBITDA/ Average Inventory Trade Receivables turnover Ratio (in times) Revenue from operations/ Average Trade Receivables Trade payables turnover Ratio (in times) Total Purchases/ Average Trade Payables Net capital turnover Ratio (in times) Revenue from operations/ Working capital (WC), where WC = Current Assets - Current Liabilities (excluding current maturities of long-term borrowing) 1 2 3 4 5 6 7 8 9 NetprofitRatio(%) 10 Return on Capital employed (in times) NetProfitaftertaxbeforeexceptionalitems(netoftax)/Revenuefrom operations Earnings before interest and tax/ Average Capital Employed, where capital employed = Net Debt + Total Equity 11 Return on investment (%) Income from investments carried at FVTPL/ Average current investments Notes: a. The Debt Equity ratio has increased due to increase in debt during the current year. b. TheDebtServiceCoverageRatiohasincreasedduetoincreaseinnetprofitsduringthecurrentyear. c. TheReturnonEquityRatiohasincreasedduetoincreaseinnetprofitsduringthecurrentyear. d. The Return on Capital employed has decreased due to decrease in earnings from operations during the current year. e. The Return on investment has increased as there has been increase in current investments during the year. 440 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 43 Oil & gas reserves and resources TheCompany'sgrossreserveestimatesareupdatedatleastannuallybasedontheforecastofproductionprofiles, 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 projects, applicationoftechnologiessuchasenhancedoilrecoverytechniquesandtrueupoftheestimates.The management’s internal estimates of hydrocarbon reserves and resources at the year end, are as follows: Gross proved and probable hydrocarbons initially in place Gross proved and probable reserves and resources Net working interest proved and probable reserves and resources Particulars Country (mmboe) (mmboe) (mmboe) As at 31 March 2023 As at 31 March 2022 As at 31 March 2023 As at 31 March 2022 As at 31 March 2023 As at 31 March 2022 Rajasthan Fields India 4,806 5,910 Ravva Fields KG-ONNfields CBOS/2 Fields Otherfields Total India India India India 704 292 298 561 704 292 298 535 6,661 7,739 933 18 36 22 146 1,155 1,006 23 36 25 61 1,151 327 4 20 9 146 506 352 5 20 10 62 449 The Company’s net working interest proved and probable reserves is as follows: Particulars Reserves as of 31 March 2021* Revisions/ additions during the year Production during the year Reserves as of 31 March 2022** Revisions/ additions during the year Production during the year Reserves as of 31 March 2023*** Proved and probable reserves Proved and probable reserves (developed) Oil (mmstb) Gas (bscf) Oil (mmstb) Gas (bscf) 134 (8) (18) 108 (5) (15) 88 133 (8) (19) 106 7 (19) 94 84 2 (17) 69 9 (15) 63 87 (3) (20) 64 16 (19) 61 * 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) ** Includes probable oil reserves of 40.86 mmstb (of which 9.82 mmstb is developed) and probable gas reserves of 45.90 bscf (of which 14.15 bscf is developed) *** Includes probable oil reserves of 29.91 mmstb (of which 10.59 mmstb is developed) and probable gas reserves of 33.40 bscf (of which 11.01 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 441 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 44 Other matters a) The Company purchases 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 2020oftheHon’bleHighCourtofOdisha,whichissubjecttofinaloutcomeofthewritpetitionfiledbytheCompany. The last successful e-auction based price discovery was done by OMC in April 2019 at ` 673/MT and supplied bauxite at this rate from September 2019 to September 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 September 2020 considering the auction base price of ` 1,707/MT. TheCompanyhadthenfiledawritpetitionbeforeHon’bleHighCourtofOdishainSeptember2020,whichissued an interim Order dated 08 October 2020 directing that the petitioner shall be permitted to lift the quantity of bauxite mutually agreed on payment of `1,000/MTandfurnishinganundertakingforthedifferentialamount,subjecttofinal outcome of the writ petition. OMC re-conducted e-auction on 09 March 2021 with floor price of ` 2,011/MT, which again was not successful. On 18 March 2021, Cuttack HC issued an order that the current arrangement of bauxite price @ ` 1000/MT will continue for the FY 2021-22. Further, on 06 April 2022, the honourable Cuttack HC directed that the current arrangement will continue for the FY 2022-23 also. Supported by legal opinions, management believes that the provisions of Rule 45 of the Rules are not applicable to commercialsaleofbauxiteoreandhence,itisnotprobablethattheCompanywillhaveanyfinancialobligationtowards the aforesaid commitments over and above the price of ` 673/MT discovered vide last successful e-auction. However, as an abundant precaution, the Company has recognised purchase of Bauxite from September 2019 onwards at the aforesaid rate of ` 1,000/MT. (b) The 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 infrastructureistobemodifiedornewequipmentshavetobeinstalled.TheCompanyisrequiredtocomplywiththe normsby31December2026viaMoEF&CC’snotificationdated05September2022. (c) On 26 October 2018, the Government of India (GoI), acting through the Directorate General of Hydrocarbons (DGH) granted its approval for a ten-year extension of the Production Sharing Contract (PSC) for the Rajasthan Block (RJ),witheffectfrom15May2020subjecttocertainconditionsandpayadditional10%profitpetroleum. Pending theoutcomeofarbitrationandpetitionfiledwithSupremecourtonapplicabilityofpolicy,MoPNGvideletterdated 21 October2022hasconveyedthegrantofapprovalofextensionofPSCfor10yearsfrom15May2020to14May 2030 and the PSC addendum has been executed by the parties on 27 October 2022. DGH, in September 2022, has trued up the earlier demand raised till 31 March 2018 up to 14 May 2020 for Government’s additionalshareofProfitoilbasedonitscomputationofdisallowanceofcostincurredoverretrospectivere-allocation of certain common costs between Development Areas (DAs) of Rajasthan Block and certain other matters aggregating to ` 9,545 Crore (US$ 1,162 million) applicable interest thereon representing share of the Company and its subsidiary. 442 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23NOTES forming part of the financial statements as at and for the year ended 31 March 2023 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS TheCompanyhasdisputedtheaforesaiddemandandtheotherauditexceptions,notifiedtilldate,asintheCompany’s view the audit notings are not in accordance with the PSC and are entirely unsustainable. Further, as per PSC provisions, disputed notings do not prevail and accordingly do not result in creation of any liability. The Company believes it has reasonable grounds to defend itself which are supported by independent legal opinions. In accordance withPSCterms,theCompanyhadcommencedarbitrationproceedings.Thefinalhearingandargumentswere concludedinSeptember2022.Posthearingbriefswasfiledbyboththepartiesandawardisawaited. For reasons aforesaid, the Company is not expecting any material liability to devolve on account of these matters. Seeaccompanyingnotestothefinancialstatements 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 Group ChiefExecutiveOfficer DIN 07291685 per Vikas Pansari Partner Membership No:093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya CompanySecretaryandComplianceOfficer ICSI Membership No. A20856 443 STANDALONENOTES forming part of the financial statements as at and for the year ended 31 March 2023 FINANCIAL STATEMENTS Consolidated Independent Auditors’ Report Balance Sheet Statement of Profit and Loss Statement of Cash Flows Statement of Changes in Equity Notes to the Financial Statements Group overview Basis of preparation and basis of measurementoffinancialstatements Significantaccountingpolicies Application of new and amended standards Significantaccountingestimates and judgements Business combinations/ Acquisitions/ Restructuring Segement Information Property, Plant and Equipment, Intangible assest, Capital work-in-progress and Exploration intangible assets under development Financial Assets - Investments Financial Assets - Trade Receivables Financial Assets - Loans Financial Assets - Others Other assets Inventories Cash and cash equivalents Other bank balances Share Capital Other equity Non-controlling interests Capital Management Financial Liabilities - Borrowings Note Pg.No. Note Pg.No. 445 456 457 458 460 462 462 463 464 483 1 2 3(a) 3(b) 3(c) 483 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 487 488 492 497 499 500 500 501 501 502 502 502 504 505 507 508 Financial Liabilities - Trade payables Operational Buyers'/ Suppliers' Credit Financial Liabilities - Others Lease liabilities Financial Instruments Provisions Other liabilities Revenue from operations Other operating income Other income Changes in Inventories of Finished Goods and Work-in- Progress Employeebenefitexpense Share based payments Employeebenefitplans Finance cost Other expenses Exceptional items Tax expense Earnings per equity share (EPS) Dividends Commitments, contingencies and guarantees Other matters Related Party Disclosures Interest in other entities Oil & gas reserves and resources Financial information pursuant to Schedule III of the Companies Act, 2013 Other Statutory Information Subsequent events 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 515 515 516 516 516 530 531 531 532 532 532 533 533 536 541 542 542 544 548 548 548 553 556 562 565 566 572 572 444 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS INDEPENDENT AUDITOR’S REPORT To the Members of Vedanta Limited Report on the Audit of the Consolidated Financial Statements Opinion We have audited the accompanying consolidated Ind ASfinancialstatementsofVedantaLimited(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 oftheconsolidatedBalancesheetasat31 March2023, theconsolidatedStatementofProfitandLoss,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 consolidatedfinancialstatements,includingasummary ofsignificantaccountingpoliciesandotherexplanatory information (hereinafter referred to as “the consolidated financialstatements”). 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 financialstatementsandontheotherfinancialinformation of the subsidiaries, associates and joint ventures, the aforesaidconsolidatedfinancialstatementsgivethe 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 venturesasat31March2023,theirconsolidatedprofit 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 Weconductedourauditoftheconsolidatedfinancial statements in accordance with the Standards on Auditing (SAs),asspecifiedundersection143(10)oftheAct. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements’ section of our report. We are independent of the Group, 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 ourauditofthefinancialstatementsundertheprovisions oftheActandtheRulesthereunder,andwehavefulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe thattheauditevidencewehaveobtainedissufficientand appropriate to provide a basis for our audit opinion on the consolidatedfinancialstatements. Key Audit Matters Key audit matters are those matters that, in our professional judgment,wereofmostsignificanceinourauditofthe consolidatedfinancialstatementsforthefinancialyear ended 31 March 2023. These matters were addressed inthecontextofourauditoftheconsolidatedfinancial 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. Wehavefulfilledtheresponsibilitiesdescribedinthe Auditor’s responsibilities for the audit of the consolidated financialstatementssectionofourreport,includingin relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement oftheconsolidatedfinancialstatements.Theresultsof 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 consolidatedfinancialstatements. 445 CONSOLIDATED Key audit matters How our audit addressed the key audit matter Accounting and disclosure of related party transactions (as described in note 42(I), 42(J), 42(L), 42(N), 42(M) of the consolidated Ind AS financialstatements) The Group has undertaken transactions with related party, Vedanta Resources Limited (‘VRL’), itsintermediatedholdingcompanyanditsaffiliates including among others determination of credit losses / (reversals) of loans, payment of brand and strategic management fee, agency commission, obtaining guarantees and payment of consideration thereof Accounting and disclosure of such related party transactionshasbeenidentifiedasakeyaudit matterduetoa)Significanceofsuchrelated party transactions; b) Risk of such transactions being executed without proper authorizations; c) Judgments and estimation involved in determination of fair value of loans and guarantees given and expected credit losses on subsequent measurement; and d) Risk of material information relating to aforesaid transactions not getting disclosedinthefinancialstatements. Our procedures included the following: • • • • • Obtained and read the Group’s policies, processes and procedures in respect ofidentificationofsuchrelatedpartiesinaccordancewithrelevantlaws and standards, obtaining approval, recording and disclosure of related party transactionsandidentifiedkeycontrols.Forselectedcontrolswehaveperformed tests of controls. Tested such related party transactions and balances with the underlying contracts, confirmationlettersandothersupportingdocumentsprovidedbytheGroup. Examinedtheapprovals/modificationoftheboardand/orauditcommitteeof these transactions. Obtained and assessed the legal and accounting opinion issued by experts engaged by the management for the accounting of agency commission with the parent company. Obtained and assessed the benchmarking report issued by the experts engaged by the management for the brand and strategic management fee. • Assessed the competence and objectivity of the external experts • Tested the methodology adopted by the Group for determination of subsequent creditlosses/(reversals)onloanstoparentcompanyanditsaffiliates. • Engaged valuation experts to assist us in performing the said procedures. • • Engaged transfer pricing experts to assist us in corroborating the arms-length assessment carried out by the management for brand and strategic fee. Held discussions and obtained representations from the management in relation to such transactions. Readthedisclosuresmadeinthisregardinthefinancialstatementsandassessed whether relevant and material information have been disclosed. Recoverability of carrying value of property plant and equipment capital work in progress and exploration intangible assets under development (asdescribedinnote3(a)(H),3(c)(A)(i),3(c)(A)(iii),3(c)(A)(v),3(c)(A)(vi),6and36oftheconsolidatedIndASfinancial statements) Asat31March2023,theGrouphadsignificant amounts of property, plant and equipment, capital work in progress and exploration intangible assets under development which were carried at historical cost less depreciation. We focused our efforts on the Cash Generating Unit (“CGU”) at (a) Tuticorin within the copper segment; (b) Rajasthan block within the oil & gas segment and (c) Western Cluster Limited in Liberia within the IronOresegment;asithadidentifiedimpairment (charge) / reversal indicators. Recoverability of property plant and equipment, capital work in progress and exploration intangible assetsbeingcarriedatcosthasbeenidentifiedas a key audit matter due to: • • • • • • Thesignificanceofthecarryingvalueofassets being assessed. The fact that the assessment of the recoverable amountoftheGroup’sCGUinvolvessignificant judgements about the future cash flow forecasts, start date of the plant and the discount rate that is applied. The withdrawal of the Holding Company’s licenses to operate the copper plant. The revision to brent oil assumptions up to 2040 due to increased demand. Changes in production forecasts due to adjustments in the future reserve estimates Levy of Special Additional Excise Duty (‘SAED’) onoilproducersduetosignificantincreasein crude prices resulting windfall gains to domestic crude producers Our audit procedures included the following: • • • Obtained and read the Group’s policies, processes and procedures in respect of identificationofimpairmentindicators,recordinganddisclosureofimpairment charge/(reversal)andidentifiedkeycontrols.Forselectedcontrolswehave performed tests of controls. Assessed through an analysis of internal and external factors impacting the Group, whether there were any indicators of impairment in line with Ind AS 36. In relation to the CGU at (a) Tuticorin within the copper segment; (b) the Rajasthan block within the oil & gas segment and (c) Western Cluster within the Iron Ore segmentwhereimpairment(charge)/reversalindicatorswereidentified,obtained and evaluated the valuation models used to determine the recoverable amount by assessing the key assumptions used by management, which included: – Assessed the implications of withdrawal of Holding Company’s license to operate the copper plant at Tuticorin. Read the external legal opinions in respect of the merits of the case and assessed management’s position through discussions with the legal counsel to determine the basis of their conclusion and its consequential impact on the reopening of the plant. – Evaluated the valuation methodology adopted by the management i.e. determination of Value In Use in light of the facts and circumstances of the matter. – Assessed management’s forecasting accuracy by comparing prior year forecasts to actual results and assessed the potential impact of any variances. – Corroborated the sales price assumptions used in the models against analyst consensus and assessing the reasonableness of costs. – Compared the production forecasts used in the impairment tests with management’s approved reserves and resources estimates, – Compared the SAED forecast used in the impairment tests with actual levy of current year and obtained external legal opinion for the interpretations made over the determination of amount due to the levy of SAED. – Tested the weighted average cost of capital used to discount the impairment models. – Tested the integrity of the models together with their clerical accuracy. 446 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Key audit matters How our audit addressed the key audit matter • The fact that the Group obtained the mining license and have started the mining activity at Bomi mine in Liberia, which were suspended since 2015 due to outbreak of Ebola. The key judgements and estimates centered on the likely outcome of the litigations with respect to withdrawal of license to operate the Copper plant, cash flow forecasts, likelihood of license extension, interpretations on mechanism of levy of SAED, discount rate assumptions and related disclosures as given in note 6 (Property, plant and equipment) / 36 (Exceptional items) of the accompanying financialstatements – TestedtheclassificationofexpensesincurredinrespectoftheBomiminesin Liberia to evaluate whether these are eligible for reversal. – Tested arithmetical accuracy of bifurcation of expenses between the 3 mines in Western cluster. – Compared assumptions used by management in respect of price forecast and ore grade against the consensus report, reserve and resource report. – Assessed Group’s reserves and resources estimation methods and policies and reading reports provided by management’s external reserves experts and assessedthescopeofworkandfindingsofthesethirdparties; – Assessed the competence, capability and objectivity of experts engaged by management;throughunderstandingtheirrelevantprofessionalqualifications and experience. – Engaged valuation experts to assist in performance of the above procedures • Assessed the disclosures made by the Group in this regard and evaluated the considerations leading to disclosure of above impairment (charge) / reversal as exceptional items. Recoverability of disputed trade receivables in Power segment (as described in note 3(c)(B)(iii) and Note 8 of the consolidated Ind AS financialstatements) As of 31 March 2023 the value of disputed receivables in the power segment aggregated to `2,354 Crore. Due to short supply or non-supply of power due to transmission line constraints, order received from Orissa State Electricity Regulatory Commission (OERC), matters related to change of law following execution of power purchase agreement and disagreementsoverthequantificationrelatingto aforementioned disputes or timing of the recovery of receivables, the recovery of said receivables are subject to increased risk. Some of these balances arealsosubjecttolitigation.Theriskisspecifically related to receivables from Punjab State Power Corporation Limited (PSPCL) and GRIDCO. 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 Our audit procedures included the following: • • • Examined the underlying power purchase agreements. Examined the relevant state regulatory commission, appellate tribunal and court rulings. Obtained and assessed the model prepared by the management for computation of Expected credit loss on the disputed receivables, including testing of key assumptions. • Engaged valuation experts to assist in performing above procedures. • Tested arithmetical accuracy of the models prepared by the management. • • ObtainedindependentexternallawyerconfirmationfromLegalCounselofthe Group who is contesting the cases. 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. • Assessed the competence and objectivity of the Group's experts. • Assessed the disclosures made by the Group in this regard. Claims and exposures relating to taxation and litigation (as described in note 3(c)(B)(ii), 37e, 40D and 41 of the consolidated Ind AS financialstatements) 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, vendor arbitrations, mining royalty demand, income tax disallowances and various indirect tax disputes which have been disclosed / provided for in the financialstatementsbasedonthefactsand circumstances of each case. Taxation and litigation exposures have been identifiedasakeyauditmatterduetothe complexities involved in these matters, timescales involvedforresolutionandthepotentialfinancial impactoftheseonthefinancialstatements. Further,significantmanagementjudgementis involved in assessing the exposure of each case and thus a risk that such cases and thus a higher risk involved on adequacy of provision or disclosure of such cases. Our audit procedures included the following:- • • • • Obtainedanunderstandingoftheprocessofidentificationofclaims,litigationsand itsclassificationasprobable,possibleorremoteandidentifiedkeycontrolsinthe process. For selected controls we have performed tests of controls. 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 andoperationalmanagement,onboththeprobabilityofsuccessinsignificant cases, and the magnitude of any potential loss. ObtainedindependentexternallawyerconfirmationfromLegalCounselofthe Group who is contesting the cases. Examined external legal opinions (where considered necessary) and other evidence tocorroboratemanagement’sassessmentoftheriskprofileinrespectoflegal claims. • Assessed the competence and objectivity of the Group'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 subsidiaries or that differences in positions are adequately justified. Assessed whether management assessment of similar cases is consistent with the positions taken in earlier periods or that difference in positions are adequately justified. Assessedtherelevantdisclosuresmadewithinthefinancialstatementstoaddress accuracy of the amounts and whether they reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant accounting standards. 447 CONSOLIDATED Key audit matters How our audit addressed the key audit matter Recognition and measurement of Deferred Tax Assets including Minimum Alternate Tax (MAT) (as described in note 3(c)(A)(ii) and 37 of theconsolidatedIndASfinancialstatements) Deferred tax assets as at 31 March 2023 includes MAT credits of ` 9,382 Crore which is available for utilization against future tax liabilities. Of the aforesaid, we focused our effort on MAT assets of ` 2,689 Crore which is expected to be utilised in thefourteenthyearandfifteenthyear,fifteenyears being the maximum permissible time period to utilize the same. Additionally, ESL Steel Limited, one of the component of the Group, has recognized deferred tax assets of ` 3,184 Crore during earlier years. The analysis of the recoverability of such deferred taxassetshasbeenidentifiedasakeyaudit matter because the assessment process involves judgementregardingthefutureprofitability, allowability of tax positions / deductions claimed by the management in the tax computations and likelihood of the realization of these assets, in particularwhethertherewillbetaxableprofits in future periods that support the recognition of these assets. This requires assumptions regarding futureprofitability,whichisinherentlyuncertain. Accordingly, the same is considered as a key audit matter. Our audit procedures included the following:- • • • • Obtained an understanding of the management’s process for estimating the recoverabilityofthedeferredtaxassetsandidentifiedkeycontrolsintheprocess. For selected controls we have performed tests of controls. Obtainedandanalysedthefutureprojectionsoftaxableprofitsestimatedby management, assessing the 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 reasonableness of the future cash flow projections. Assessed management’s forecasting accuracy by comparing prior year forecasts to actual results and assessed the potential impact of any variances. Tested the accuracy of the deductions availed under the Income Tax Act included in the tax computation. • Tested the computation of the amounts recognized as deferred tax assets. • Engaged valuation experts to assist in performance of the above procedures. • Assessed the competence and objectivity of the experts engaged by us. • Assessed the disclosures made by the Group in this regard. 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 notincludetheconsolidatedfinancialstatementsandour auditor’s report thereon. Ouropinionontheconsolidatedfinancialstatementsdoes not cover the other information and we do not express any form of assurance conclusion thereon. Inconnectionwithourauditoftheconsolidatedfinancial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the consolidated financialstatementsorourknowledgeobtainedintheaudit 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 for the Consolidated Financial Statements The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated financialstatementsintermsoftherequirementsoftheAct thatgiveatrueandfairviewoftheconsolidatedfinancial position,consolidatedfinancialperformanceincluding 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 448 India, including the Indian Accounting Standards (Ind AS)specifiedundersection133oftheActreadwiththe 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 judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequateinternalfinancialcontrols,thatwereoperating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentationoftheconsolidatedfinancialstatements 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 consolidatedfinancialstatementsbytheDirectorsofthe Holding Company, as aforesaid. Inpreparingtheconsolidatedfinancialstatements,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 their respective company(ies) 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 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 venturesarealsoresponsibleforoverseeingthefinancial reporting process of their respective company(ies). Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements Our objectives are to obtain reasonable assurance about whethertheconsolidatedfinancialstatementsasawhole 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 basisoftheseconsolidatedfinancialstatements. 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 oftheconsolidatedfinancialstatements,whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence thatissufficientandappropriatetoprovideabasis 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 internalfinancialcontrolswithreferencetofinancial 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 maycastsignificantdoubtontheabilityoftheGroup 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 financialstatementsor,ifsuchdisclosuresare 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. INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS • Evaluate the overall presentation, structure and content oftheconsolidatedfinancialstatements,includingthe disclosures,andwhethertheconsolidatedfinancial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Obtainsufficientappropriateauditevidenceregarding thefinancialinformationoftheentitiesorbusiness activities within the Group and its associates and joint ventures of which we are the independent auditors and whosefinancialinformationwehaveaudited,toexpress anopinionontheconsolidatedfinancialstatements. We are responsible for the direction, supervision and performanceoftheauditofthefinancialstatements ofsuchentitiesincludedintheconsolidatedfinancial statements of which we are the independent auditors. For the other entities included in the consolidated financialstatements,whichhavebeenauditedbyother 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 theconsolidatedfinancialstatementsofwhichwearethe independent auditors regarding, among other matters, the plannedscopeandtimingoftheauditandsignificantaudit findings,includinganysignificantdeficienciesininternal 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 mostsignificanceintheauditoftheconsolidatedfinancial statementsforthefinancialyearended31March2023 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 beexpectedtooutweighthepublicinterestbenefitsof such communication. Other Matter (a) Wedidnotauditthefinancialstatementsandother financialinformation,inrespectof18subsidiaries, whosefinancialstatementsincludetotalassetsof ` 31,100 Crore as at 31 March 2023, and total revenues of ` 13,463Crore,totalnetprofitaftertaxof` 1,480 Crore, total comprehensive income of ` 1,493 Crore, and net cash outflows of ` 76 Crore for the year ended onthatdate.Thesefinancialstatementandother 449 CONSOLIDATED financialinformationhavebeenauditedbyother auditors,whichfinancialstatements,otherfinancial information and auditor’s reports have been furnished tousbythemanagement.Theconsolidatedfinancial statements also include the Group’s share of total assets of ` Nil, total revenues of ` Nil, total net loss of ` 3 Crore, total comprehensive loss of ` 3 Crore, and net cash inflows of ` Nil for the year ended 31 March 2023, as considered in the consolidated financialstatements,inrespectof1associateand 1jointventure,whosefinancialstatements,other financialinformationhavebeenauditedbyother auditors and whose reports have been furnished to us by the Management. Our opinion on the consolidated financialstatements,insofarasitrelatestothe amounts and disclosures included in respect of these subsidiaries, joint venture and associate, 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, joint venture and associate, is based solely on the report(s) of such other auditors. Certain of these subsidiaries, associate and joint venturearelocatedoutsideIndiawhosefinancial statementsandotherfinancialinformationhavebeen 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 managementhasconvertedthefinancialstatements of such subsidiaries, associate and joint venture 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, joint venture and associate 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. Theaccompanyingconsolidatedfinancialstatements includeunauditedfinancialstatementsandother unauditedfinancialinformationinrespectof9 subsidiaries,whosefinancialstatementsandother financialinformationreflecttotalassetsof` 1,651 Crore as at 31 March 2023, total revenues of ` 5,205 Crore, total net loss after tax of ` 116 Crore, total comprehensive loss of ` 115 Crore and net cash inflows of ` 33 Crore for the year ended on that date. Theseunauditedfinancialstatementsandother unauditedfinancialinformationhavebeenfurnished tousbythemanagement.Theconsolidatedfinancial statements also include the Group’s share of total assets of ` Nil, total revenues of ` Nil,totalnetprofit of ` Nil, total comprehensive income of ` Nil and net cash inflows of ` Nil for the year ended 31 March 2023, asconsideredintheconsolidatedfinancialstatements, in respect of 1 associate and 3 joint ventures, whose financialstatements,otherfinancialinformation havenotbeenauditedandwhoseunauditedfinancial statements,otherunauditedfinancialinformation have been furnished to us by the Management. The consolidatedIndASfinancialstatementsalsoincludes group’s share of total assets of ` 149 Crore as at 31 March 2023, total revenues of ` 100 Crore, total netprofitaftertaxof` 32 Crore, total comprehensive income of ` 32 Crore for the year ended 31 March 2023, and net cash inflows of ` 0 Crore for the year ended 31 March 2023 in respect of unincorporated joint venture not operated by the Group. Our opinion, in so far as it relates amounts and disclosures included in respect of these subsidiaries, joint ventures and associate, 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, joint ventures and associate,isbasedsolelyonsuchunauditedfinancial statementsandotherunauditedfinancialinformation. In our opinion and according to the information and explanations given to us by the Management, these financialstatementsandotherfinancialinformation are not material to the Group. Ouropinionaboveontheconsolidatedfinancial statements, and our report on Other Legal and RegulatoryRequirementsbelow,isnotmodifiedin respect of the above matters with respect to our reliance on the work done and the reports of the otherauditorsandthefinancialstatementsandother financialinformationcertifiedbytheManagement. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, based on our audit and on the consideration ofreportoftheotherauditorsonseparatefinancial statementsandtheotherfinancialinformationofthe subsidiary companies, associate companies and joint ventures companies, incorporated in India, as noted in the ‘Other Matter’ paragraph we give in the “Annexure1”astatementonthemattersspecifiedin paragraph 3(xxi) of the Order. 2. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditorsonseparatefinancialstatementsandthe otherfinancialinformationofsubsidiaries,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 belief were necessary (b) 450 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 (b) (c) (d) (e) (f) (g) for the purposes of our audit of the aforesaid consolidatedfinancialstatements; In our opinion, proper books of account as required by law relating to preparation of theaforesaidconsolidationofthefinancial statements have been kept so far as it appears from our examination of those books and reports of the other auditors; The Consolidated Balance Sheet, the Consolidated StatementofProfitandLossincludingthe 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 financialstatements; In our opinion, the aforesaid consolidated financialstatementscomplywiththeAccounting StandardsspecifiedunderSection133ofthe Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; On the basis of the written representations received from the directors of the Holding Company as on 31 March 2023 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 ventures, incorporatedinIndia,isdisqualifiedason 31 March2023frombeingappointedasadirector in terms of Section 164 (2) of the Act; With respect to the adequacy of the internal financialcontrolswithreferencetoconsolidated financialstatementsoftheHoldingCompanyand its subsidiary companies, associate companies and joint ventures, incorporated in India, and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries, associates and joint ventures incorporated in India, the managerial remuneration for the year ended 31 March 2023 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, except in case of 1 subsidiary incorporated in India, wherein the managerial remuneration in respect of a whole time director for the year ended 31 March INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 2023 has been paid /provided in excess of the provisions of section 197 read with Schedule V to the Act and the terms of appointment and remuneration paid to the new Whole Time Director is yet to be approved by the shareholders of the subsidiary. Management of the subsidiary is in the process of obtaining waiver of the aforesaid excess remuneration and approval of the terms of appointment and remuneration for the new whole time director from the shareholders of the subsidiary (Refer Note 41(e)(iii)); (h) 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 reportoftheotherauditorsonseparatefinancial statementsasalsotheotherfinancialinformation of the subsidiaries, associates and joint ventures, as noted in the ‘Other matter’ paragraph: i. ii. iii. Theconsolidatedfinancialstatements disclose the impact of pending litigations onitsconsolidatedfinancialpositionofthe Group, its associates and joint ventures initsconsolidatedfinancialstatements– Refer Note 3(c)(B)(ii), 37e, 40D and 41 to the consolidatedfinancialstatements; 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 March2023; 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 2023. iv. a) The respective managements of the Holding Company and its subsidiaries, associate and joint ventures which are companies incorporated in India whosefinancialstatementshavebeen audited under the Act have represented to us and the other auditors of such subsidiaries, associate and joint ventures respectively that, to the best of its knowledge and belief, as disclosed in the note 42(O) to the consolidated financialstatements,nofundshave been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind 451 CONSOLIDATED b) of funds) by the Holding Company or any of such subsidiaries, associate and joint ventures to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in otherpersonsorentitiesidentified in any manner whatsoever by or on behalf of the respective Holding Company or any of such subsidiaries, associate and joint ventures (“Ultimate Beneficiaries”)orprovideanyguarantee, security or the like on behalf of the UltimateBeneficiaries; The respective managements of the Holding Company and its subsidiaries, associate and joint ventures which are companies incorporated in India whosefinancialstatementshavebeen audited under the Act have represented to us and the other auditors of such subsidiaries, associate and joint ventures respectively that, to the best of its knowledge and belief, as disclosed in the note 42(O) to the consolidated financialstatements,nofundshave been received by the respective Holding Company or any of such subsidiaries, associate and joint ventures from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Holding Company or any of such subsidiaries, associate and joint ventures shall, whether, directly or indirectly, lend or invest in other persons or entities identifiedinanymannerwhatsoever by or on behalf of the Funding Party c) (“UltimateBeneficiaries”)orprovideany guarantee, security or the like on behalf oftheUltimateBeneficiaries;and Based on the audit procedures that have been considered reasonable and appropriate in the circumstances performed by us and that performed by the auditors of the subsidiaries, associate and joint ventures which are companies incorporated in India whosefinancialstatementshavebeen audited under the Act, nothing has come to our or other auditor’s notice that has caused us or the other auditors to believe that the representations under sub-clause (a) and (b) contain any material mis-statement. v) vi) The interim dividend declared and paid during the year by the Holding Company, its subsidiaries, associate and joint venture companies incorporated in India and until the date of the respective audit reports of such Holding Company, subsidiaries, associate and joint ventures is in accordance with section 123 of the Act. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable only w.e.f. April 1, 2023 for the Holding Company, its subsidiaries, associate and joint venture companies incorporated in India, hence reporting under this clause is not applicable. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 per Vikas Pansari Partner Place of Signature: Mumbai Membership Number: 093649 UDIN: 23093649BGXPKQ3436 Date: 12 May 2023 452 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ANNEXURE-1 referred to paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date Re: Vedanta Limited (‘the Company’) In terms of the information and explanations sought by us and given by the Company and the books of account and records examined by us in the normal course of audit and to the best of our knowledge and belief, we state that: QualificationsoradverseremarksbytherespectiveauditorsintheCompanies(AuditorsReport)Order(CARO)reportsofthe companiesincludedintheconsolidatedfinancialstatementsare: S.No Name CIN 1 2 3 Bharat Aluminium Company Limited U74899DL1965PLC004518 Sesa Resources Limited U13209GA1965PLC000030 Malco Energy Limited U31300TN2001PLC069645 Place of Signature: Mumbai Date: 12 May 2023 Holding company/ subsidiary/ associate/ joint venture Clause number of the CARO report which is qualified or is adverse Subsidiary Subsidiary Subsidiary (ix)(d) (i)(c) (ix)(d) For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 per Vikas Pansari Partner Membership Number: 093649 UDIN: 23093649BGXPKQ3436 453 CONSOLIDATED ANNEXURE 2 to the Independent Auditor’s Report of even date on the Ind As Consolidated 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 financialstatementsofVedantaLimitedasofandforthe year ended 31 March 2023, we have audited the internal financialcontrolsoverfinancialreportingofVedanta Limited (hereinafter referred to as the “Holding Company”) and its subsidiary companies, 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 19 subsidiary companies, its 1 associate company and 2 joint ventures, which are companies incorporated in India, are responsible for establishing and maintaining internalfinancialcontrolsbasedontheinternalcontrol overfinancialreportingcriteriaestablishedbytheHolding 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 adequateinternalfinancialcontrolsthatwereoperating effectivelyforensuringtheorderlyandefficientconduct 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 preparationofreliablefinancialinformation,asrequired under the Act. Auditor’s Responsibility Our responsibility is to express an opinion on the company's internalfinancialcontrolsoverfinancialreportingwith referencetotheseconsolidatedfinancialstatementsbased 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 auditofinternalfinancialcontrols.ThoseStandardsand the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financialcontrolsoverfinancialreportingwithreference totheseconsolidatedIndASfinancialstatementswas established and maintained and if such controls operated effectively in all material respects. 454 Our audit involves performing procedures to obtain audit evidenceabouttheadequacyoftheinternalfinancial controlsoverfinancialreportingwithreferencetothese consolidatedIndASfinancialstatementsandtheir operatingeffectiveness.Ourauditofinternalfinancial controlsoverfinancialreportingincludedobtainingan understandingofinternalfinancialcontrolsoverfinancial reporting with reference to these consolidated Ind AS financialstatements,assessingtheriskthatamaterial 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 risksofmaterialmisstatementofthefinancialstatements, 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,issufficientandappropriatetoprovideabasisfor ourauditopinionontheinternalfinancialcontrolsover financialreportingwithreferencetotheseconsolidatedInd ASfinancialstatements. Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Ind AS Financial Statements Acompany'sinternalfinancialcontroloverfinancial reporting with reference to these consolidated Ind AS financialstatementsisaprocessdesignedtoprovide reasonableassuranceregardingthereliabilityoffinancial reportingandthepreparationoffinancialstatementsfor external purposes in accordance with generally accepted accountingprinciples.Acompany'sinternalfinancial controloverfinancialreportingwithreferencetothese consolidatedfinancialstatementsincludesthosepolicies 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 preparationoffinancialstatementsinaccordancewith 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 financialstatements. VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Financial Statements Becauseoftheinherentlimitationsofinternalfinancial controlsoverfinancialreportingwithreferencetothese consolidatedIndASfinancialstatements,includingthe 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 evaluationoftheinternalfinancialcontrolsoverfinancial reporting with reference to these consolidated Ind AS financialstatementstofutureperiodsaresubjecttotherisk thattheinternalfinancialcontroloverfinancialreporting withreferencetotheseconsolidatedfinancialstatements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Holding Company, its subsidiary companies, its associate company and joint ventures, which are companies incorporated in India, have, maintained in all materialrespects,adequateinternalfinancialcontrolsover financialreportingwithreferencetotheseconsolidatedInd ASfinancialstatementsandsuchinternalfinancialcontrols overfinancialreportingwithreferencetotheseconsolidated IndASfinancialstatementswereoperatingeffectivelyasat 31March2023,basedontheinternalcontroloverfinancial 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 financialcontrolsoverfinancialreportingwithreference totheseconsolidatedfinancialstatementsoftheHolding Company, insofar as it relates to 6 subsidiary companies, 1 associate and 2 joint ventures which is a company incorporated in India, is based on the corresponding reports of the auditors of such subsidiary. For S.R. Batliboi & Co. LLP Chartered Accountants ICAI Firm Registration Number: 301003E/E300005 per Vikas Pansari Partner Place of Signature: Mumbai Membership Number: 093649 UDIN: 23093649BGXPKQ3436 Date: 12 May 2023 455 CONSOLIDATED CONSOLIDATED BALANCE SHEET As at 31 March 2023 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 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 Lease liabilities Derivatives Otherfinancialliabilities Provisions Deferred tax liabilities (net) Other non-current liabilities Total non-current liabilities Current liabilities Financial liabilities Borrowings Lease liabilities Operational buyers' credit / suppliers' credit Trade payables Derivatives Otherfinancialliabilities Provisions Income tax liabilities (net) Other current liabilities Total current liabilities Total Equity and Liabilities Note As at 31 March 2023 As at 31 March 2022 (` in Crore) 6 6 6 6 7A 8 9 10 37 37 11 12 7B 8 13 14 9 24 10 11 15 16 17 19A 23 24 22 25 37 26 19B 23 21 20 24 22 25 26 93,607 17,434 1,976 2,256 514 2,532 10 3,784 8,495 1,635 3,606 1,35,849 15,012 12,636 4,014 6,926 2,328 3,760 214 7,868 1,256 6,493 60,507 1,96,356 372 39,051 39,423 10,004 49,427 43,476 144 20 1,606 3,426 5,922 4,309 58,903 22,706 302 13,701 11,043 193 24,861 381 1,601 13,238 88,026 1,96,356 91,990 14,230 1,476 1,649 151 3,001 3,166 3,092 5,085 2,762 3,442 1,30,044 14,313 17,140 4,946 8,671 6,684 2,304 258 8,724 25 5,273 68,338 1,98,382 372 65,011 65,383 17,321 82,704 36,205 150 6 1,327 3,386 4,435 4,674 50,183 16,904 324 11,151 10,380 531 17,094 417 917 7,777 65,495 1,98,382 Seeaccompanyingnotestothefinancialstatements 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 Group Chief Executive Officer DIN 07291685 per Vikas Pansari Partner Membership No: 093649 Place: Mumbai Date: 12 May 2023 456 Prerna Halwasiya Company Secretary and Compliance Officer ICSI Membership No. A20856 Place: Mumbai Date: 12 May 2023 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF PROFIT AND LOSS For the year ended 31 March 2023 Particulars Revenue from operations Other operating income Other income Total income Expenses Cost of materials consumed Purchases of stock-in-trade Changesininventoriesoffinishedgoods,work-in-progressandstockintrade Power and fuel charges Employeebenefitsexpense Finance costs Depreciation, depletion and amortisation expense Other expenses Total expenses Profit before exceptional items and tax Net exceptional loss Profit before tax Tax expense: Net current tax expense Netdeferredtax(benefit)/expense On exceptional items Netdeferredtax(benefit)/expense Netcurrenttaxbenefit Net tax expense: Profit after tax for the period before share in (loss)/ profit of jointly controlled entities and associates Add:Sharein(loss)/profitofjointlycontrolledentitiesandassociates Profit for the period after share in (loss)/ profit of jointly controlled entities and associates (A) Other comprehensive income Items that will not be reclassified to profit or loss Re-measurementlossondefinedbenefitplans Taxbenefit (Loss)/ gain on FVOCI equity investment Items that will be reclassified to profit or loss Net gain/ (loss) on cash flow hedges recognised during the period Tax(expense)/benefit Net(loss)/gainoncashflowhedgesrecycledtoprofitorloss Taxbenefit/(expense) Net loss on FVOCI debt investment Taxbenefit Exchange differences on translation Taxbenefit Total other comprehensive income (B) Total comprehensive income for the period (A+B) Profit attributable to: Owners of Vedanta Limited Non-controlling interests Other comprehensive income attributable to: Owners of Vedanta Limited Non-controlling interests Total comprehensive income attributable to: Owners of Vedanta Limited Non-controlling interests Earnings per equity share (`): - Basic - Diluted Seeaccompanyingnotestothefinancialstatements Year ended 31 March 2023 1,45,404 1,904 2,851 1,50,159 (` in Crore) Year ended 31 March 2022 1,31,192 1,540 2,600 1,35,332 44,470 57 (377) 30,950 3,098 6,225 10,555 34,688 1,29,666 20,493 (217) 20,276 7,624 (1,580) (152) (122) 5,770 14,506 (3) 14,503 (11) 11 (37) (37) 3,451 (1,201) (3,433) 1,201 (34) 4 886 84 958 921 15,424 10,574 3,929 987 (66) 11,561 3,863 28.50 28.32 37,397 133 (2,049) 20,939 2,811 4,797 8,895 28,677 1,01,600 33,732 (768) 32,964 6,889 2,544 402 (580) 9,255 23,709 1 23,710 (18) 1 15 (2) (271) 90 371 (131) - - 793 13 865 863 24,573 18,802 4,908 823 40 19,625 4,948 50.73 50.38 Note 27 28 29 30 31 34 6 35 36 37 38 38 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 Group Chief Executive Officer DIN 07291685 per Vikas Pansari Partner Membership No: 093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya Company Secretary and Compliance Officer ICSI Membership No. A20856 457 CONSOLIDATED CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2023 Particulars CASH FLOWS FROM OPERATING ACTIVITIES Profitbeforetaxation Adjustments for: Depreciation, depletion and amortisation Impairment charge/(reversal) of assets/ Capital work-in-progress written off Provision for doubtful debts/ advance/ bad debts written off Exploration costs written off Liabilities written back Other exceptional items Other non-cash item Fairvaluegainonfinancialassetsheldatfairvaluethroughprofitorloss Loss/(Profit)onsale/discardofproperty,plantandequipment(net) Foreign exchange loss (net) Unwinding of discount on decommissioning liability Transfer of CSR assets (Refer note 6) Share based payment expense Interest and dividend income Interest expense Deferred government grant Changes in assets and liabilities Decrease/ (Increase) in trade and other receivables Increase in inventories Increase in trade and other payables Cash generated from operations Income taxes paid (net) Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 20,276 32,964 10,597 (771) 426 327 (256) - (66) (74) 9 492 96 117 77 (2,283) 6,129 (273) 1,662 (728) 3,665 39,422 (6,357) 33,065 8,919 (2,621) 244 2,618 (65) 771 - (209) (128) 235 78 - 79 (1,887) 4,712 (245) (8,199) (4,373) 7,806 40,699 (5,736) 34,963 Purchases of property, plant and equipment (including intangibles) (13,787) (10,630) Proceeds from sale of property, plant and equipment Loans repaid by related parties (Refer Note 42) Deposits made Proceeds from redemption of deposits Short term investments made Proceeds from sale of short term investments Interest received Dividends received Payment made to site restoration fund Purchase of long term investments (Refer Note 42) Net cash used in investing activities 458 133 2,408 (4,203) 9,238 (1,11,039) 1,15,244 1,674 18 (129) (250) (693) 325 1,623 (11,966) 16,960 (87,135) 86,848 1,868 1 (147) 0 (2,253) VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2023 Particulars CASH FLOWS FROM FINANCING ACTIVITIES (Repayment)/ Proceeds 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 for acquiring non-controlling interest Payment of dividends to equity holders of the Company, net of taxes Payment of dividends to non-controlling interests Payment of lease liabilities Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease)/ increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at end of the year (Refer note 13) (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (951) 23,846 (18,319) 18,624 (10,464) (5,530) (17) (29,959) (11,190) (182) (34,142) 25 (1,745) 8,671 6,926 875 13,256 (10,337) 20,916 (28,758) (5,274) - (16,681) (2,668) (232) (28,903) 10 3,817 4,854 8,671 Notes: 1. 2. Thefiguresinparenthesesindicateoutflow. 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 Seeaccompanyingnotestothefinancialstatements As per our report of even date For and on behalf of the Board of Directors For S.R. Batliboi & Co. LLP Navin Agarwal Sunil Duggal Chartered Accountants ICAI Firm Registration No. 301003E/E300005 Executive Vice-Chairman and Whole-Time Director Whole-Time Director and Group Chief Executive Officer per Vikas Pansari Partner Membership No: 093649 Place: Mumbai Date: 12 May 2023 DIN 00006303 Place: Mumbai Date: 12 May 2023 DIN 07291685 Prerna Halwasiya Company Secretary and Compliance Officer ICSI Membership No. A20856 459 CONSOLIDATED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2023 A. Equity Share Capital Equity shares of ` 1 each issued, subscribed and fully paid As at 31 March 2023, 31 March 2022 and 31 March 2021* *There are no prior period errors for the years ended 31 March 2022 and 31 March 2021. Number of shares (in Crore) 372 Amount (` in Crore) 372 B. Other Equity Particulars Reserves and surplus Capital reserve Securities premium Retained earnings Balance as at 01 April 2021 18,512 19,009 Profitfortheyear 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 Recognition of put option liability/derecognition of non controlling interest Dividend - - - - - - - 98 - Other reserves (Refer note below) Foreign currency translation reserve 19,672 3,045 - - - 43 (34) 49 (584) - - - 734 734 - - - - - - 19,146 3,779 - 1,072 (` in Crore) Instruments through OCI Items of OCI Effective portion of cash flow hedges Total other equity Non- controlling interests Total 93 - 15 15 - - - - - - 108 - (57) (48) 61,906 15,138 77,044 - 91 18,802 4,908 23,710 823 40 863 91 19,625 4,948 24,573 - - - - - 43 (10) 30 - 98 - - - - (97) 43 (10) 30 - 1 - (16,681) (2,668) (19,349) 43 - (25) 65,011 10,574 987 17,321 82,332 3,929 14,503 (66) 921 1,623 18,802 (17) 18,785 - 24 (19) 584 - - - - - - - - - - (16,681) Balance as at 31 March 2022 18,610 19,009 Profitfortheyear 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 Recognition of put option liability/derecognition of non controlling interest Acquisition of non-controlling interest in FPL (Refer note 4) Dividend including tax (Refer note 39) - - - - - - 21 (58) - - - - - - - - - - 4,316 10,574 (3) 10,571 - 8 (78) - - (37,572) - - - 85 (15) 88 - - - 1,072 (57) (25) 11,561 3,863 15,424 - - - - - - - - - - - - - - - - - 85 (7) 10 21 - - - (31) 85 (7) 10 (10) (58) 41 (17) - (37,572) (11,190) (48,762) Balance as at 31 March 2023 18,573 19,009 (22,755) 19,304 4,851 51 18 39,051 10,004 49,055 460 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2023 Note: Other reserves comprise: Particulars Capital redemption reserve Debenture redemption reserve Preference share redemption reserve Capital reserve on consolidation Share based payment reserve Legal reserve Treasury shares General reserve Total (` in Crore) Balance as at 01 April 2021 23 584 3,087 10 Recognition of share based payment Stock options cancelled during the year Exercise of stock options Transfer to retained earnings Balance as at 31 March 2022 Recognition of share based payment Stock options cancelled during the year Exercise of stock options - - - - 23 - - - Balance as at 31 March 2023 23 Seeaccompanyingnotestothefinancialstatements - - - (584) - - - - - - - - - 3,087 - - - 3,087 - - - - 10 - - - 10 171 43 (34) (44) - 136 85 (15) (38) 168 25 (323) 16,095 19,672 - - - - - - 93 - - - - - 43 (34) 49 (584) 25 (230) 16,095 19,146 - - - - - 126 - - - 85 (15) 88 25 (104) 16,095 19,304 As per our report of even date For and on behalf of the Board of Directors For S.R. Batliboi & Co. LLP Navin Agarwal Sunil Duggal Chartered Accountants ICAI Firm Registration No. 301003E/E300005 Executive Vice-Chairman and Whole-Time Director Whole-Time Director and Group Chief Executive Officer per Vikas Pansari Partner Membership No: 093649 Place: Mumbai Date: 12 May 2023 DIN 00006303 Place: Mumbai Date: 12 May 2023 DIN 07291685 Prerna Halwasiya Company Secretary and Compliance Officer ICSI Membership No. A20856 461 CONSOLIDATED 1 Group overview Vedanta Limited (“the Company”) and its consolidated subsidiaries(collectively,the“Group”)isadiversified 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 has 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 officeoftheCompanyissituatedat1st Floor, ‘C’ wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (East), Mumbai-400093, Maharashtra. The Company’s shares are listed on National Stock Exchange ('NSE') and Bombay Stock Exchange ('BSE') 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 ('NYSE'). The ADSs of the Company have been delisted from NYSE effective close of trading on NYSE on 08 November 2021. The Company has been deregistered from SEC under the Exchange Act effective 01 March 2023. The Company is majority owned by Twin Star Holdings Limited (“Twin Star”), Finsider International Company Limited (“Finsider”), Vedanta Holdings Mauritius II Limited ("VHM2L"), Vedanta Holdings Mauritius Limited ("VHML"), Welter Trading Limited (“Welter”) and Vedanta Netherlands Investments BV (“VNIBV”) which are in turn wholly-owned subsidiaries of Vedanta Resources Limited ("VRL"), a company incorporated in the United Kingdom. VRL, through its subsidiaries, held 68.11% (31 March 2022: 69.69%) of the Company's equity as at 31 March 2023. Details of Group’s various businesses are as follows. The Group’s percentage holdings in each of the below businesses are disclosed in note 43. • Zinc India business is owned and operated by Hindustan Zinc Limited (“HZL”). • Zinc international business comprises Skorpion mineandrefineryinNamibiaoperatedthrough THL Zinc Namibia Holdings (Proprietary) Limited (“Skorpion”), Lisheen mine in Ireland operated 462 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 its wholly owned subsidiary, i.e., Sesa Resources 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 the Honourable Supreme Court of India order, mining operations in the state of Goa were suspended. During the current year, the Government of Goa has initiated auction of mines in which the Company has participated. The Company has been declared as the principal bidder for the Bicholim mine and has received the Letter of Intent (LOI) from the Government of Goa. In addition, the Group’s iron ore business also includes a wholly owned subsidiary, Western Cluster Limited (“WCL”) in Liberia which has iron ore assets. WCL’s assets include development rights to Western Cluster and a network of iron ore deposits in West Africa. During the current year, WCL has signed a Memorandum of Understanding with the Government of Liberia to re-start its mining operations in Liberia. Commercial production of saleable ore commenced from July 2022 followed by shipments from December 2022. • 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 4,00,000 TPA copper smelter plant in Tuticorin for wantoffurtherclarificationandconsequentlythe operationsweresuspended.TheCompanyhasfiled 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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)(iii)]. Further, the Company’s copper business includes refineryandrodplantatSilvassaconsistingof a 2,45,000 MT of blister/ secondary material processingplant,a2,16,000TPAcopperrefinery plant and a copper rod mill with an installed capacity of 2,58,000 TPA. The plant continues to operate as usual, catering to the domestic market. In addition, the Group owns and operates the Mt. Lyell copper mine in Tasmania, Australia through itssubsidiary,CMTandapreciousmetalrefinery 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. In November 2021, the Group executed an arrangement with a third party for further exploration with an option to fully divest its shareholding in return for royalties on successful mining and production. • The Group’s Aluminium business is owned and operated by the Company and by Bharat Aluminium Company Limited (“BALCO”). The aluminium operationsincludearefineryandcaptivepower 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 comprise 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 the 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 business also include Vizag General Cargo Berth Private Limited (“VGCB”) and Maritime Ventures Private Limited (“MVPL”). Vizag port project includes mechanization 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 operationsinthefourthquarteroffiscal2013.The Group’s other business also include AvanStrate Inc. (“ASI”), Ferro Alloys Corporation Limited ("FACOR") and Desai Cement Company Private Limited ("DCCPL"). ASI is involved in the manufacturing of glass substrate in South Korea and Taiwan. FACOR is involved in manufacturing of Ferro Alloys, mining of chrome ore and generation of power. It owns a ferro chrome plant with a capacity of approximately 1,40,000 TPA, a 100MW power plant and a mine in Sukinda valley with current capacity of 2,90,000 TPA. DCCPL is involved in business of producing slag cements and owns three ball mills with capacity of 2,18,000 TPA. 2 Basis of preparation and basis of measurement of financial statements (A) Basis of preparation i) Theseconsolidatedfinancialstatementshavebeen prepared in accordance with Indian Accounting Standards(IndAS)notifiedundertheCompanies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Companies Act, 2013 (the "Act") (as amended from time to time), guidelines issued by the Securities and Exchange Board of India (“SEBI”) and Guidance Note on Accounting for Oil and Gas Producing Activities issued by the Institute of Chartered Accountants of India. Theseconsolidatedfinancialstatementshavebeen prepared in accordance with the accounting policies, 463 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED set out below and were consistently applied to all periods presented unless otherwise stated. Theseconsolidatedfinancialstatementsareapproved for issue by the Board of Directors on 12 May 2023.Therevisiontotheseconsolidatedfinancial statements is permitted by the Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per provisions of the Act. AllfinancialinformationpresentedinIndianRupees has been rounded off to the nearest crore except when indicated otherwise. Amounts less than ` 0.50 Crore have been presented as “0”. ii) Certaincomparativefiguresappearinginthese consolidatedfinancialstatementshavebeen regroupedand/orreclassifiedtobetterreflectthe nature of those items. (B) Basis of measurement Theconsolidatedfinancialstatementshavebeen prepared on a going concern basis using historical cost convention and on an accrual method of accounting,exceptforcertainfinancialassetsand liabilities which are measured at fair value as explained in the accounting policies below. 3(a) Significant accounting policies (A) Basis of Consolidation 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 reclassifiedfromequity.Attheendofeachreporting period, the non-controlling interests subject to put option is derecognised and the difference between the amount derecognised and present value of the redemptionamount,whichisrecordedasafinancial 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 betweenthisfigureandthecashpaid,inclusiveof 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 the increase to non-controlling interest is also recognised in equity. The results of subsidiaries acquired or disposed off during the year areincludedintheconsolidatedstatementofprofit 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 unrealizedprofitarisingfromintra-Grouptransactions, are eliminated. Unrealized losses are eliminated unless costs cannot be recovered. Subsidiaries: ii) Joint arrangements Theconsolidatedfinancialstatementsincorporatethe 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, whichsignificantlyaffecttheentity'sreturns. Thefinancialstatementsofsubsidiariesareprepared for the same reporting year as the parent company. Where necessary, adjustments are made to the financialstatementsofsubsidiariestoalignthe accounting policies in line with accounting policies of the Group. For non-wholly owned subsidiaries, a share of the profit/(loss)forthefinancialyearandnetassetsis attributed to the non-controlling interests as shown intheconsolidatedstatementofprofitandlossand consolidated balance sheet. 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 classifiedaseitherjointoperationsorjointventure. Theclassificationdependsonthecontractualrights 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. i) 464 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 includedintheconsolidatedfinancialstatements under the appropriate headings. Details of joint operations are set out in Note 43. 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. iii) Investments in associates An associate is an entity over which the Group has significantinfluence.Significantinfluenceisthepower toparticipateinthefinancialandoperatingpolicy 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-acquisitionprofitsorlossesoftheinvestee,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. Theconsolidatedstatementofprofitandlossinclude 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 recognized. 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 unrealized 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 3(a)(H) below. (B) Business combination Business combinations are accounted for under thepurchasemethod.Theacquiree'sidentifiable 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 theacquisitiondatefairvalueofidentifiableassets acquired and liabilities assumed is recognised as goodwill. Goodwill arising on acquisitions is reviewed for impairment annually. Where the fair values of the identifiableassetsandliabilitiesexceedthepurchase consideration, the Group re-assesses whether it has correctlyidentifiedalloftheassetsacquiredandall of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized 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 recognized in other comprehensive income and accumulated in equity as capital reserve. However, 465 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED if there is no clear evidence of bargain purchase, the Group recognizes 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 offairvaluesbythedateonwhichthefirstpost- acquisitionfinancialstatementsareapproved,a provisional assessment of fair value is made and any adjustments required to those provisional fair values arefinalisedwithin12monthsoftheacquisitiondate. 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 identifiableassets.Thisaccountingchoiceismadeon a transaction by transaction basis. Acquisition expenses are charged to the consolidated statementofprofitandloss. 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 totheindividualidentifiableassetsacquiredbasedon 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 controlarespecificallycoveredbyIndAS103.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 financialstatementswiththeexceptionofcertain 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 financialstatementsandthefinancialstatementsof 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 as per terms of contract, 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. Certain of the Group’s sales contracts provide for provisional pricing based on the price on the London MetalExchange(LME)andcrudeindex,asspecified 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 466 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS consideration adjusted post transfer of control are included in total revenue from operations on the face oftheconsolidatedstatementofprofitandlossand disclosedbywayofnotetothefinancialstatements. Final settlement of the price is based on the applicable priceforaspecifiedfutureperiod.TheGroup’s provisionally priced sales are marked to market using the relevant forward prices for the future period specifiedinthecontractandisadjustedinrevenue. 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 Groupexcludesgovernment’sshareofprofitoilwhich 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 relevantTariffRegulationsasnotifiedbytheregulatory 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. Theadvancepaymentsreceivedplusaspecified 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,andhastheability,tofulfilthroughdeliveryof anon-financialitem,thesearepresentedasadvance from customers and are recognised as revenue as and when control of respective commodities is transferred tocustomersundertheagreements.Thefixedrateof return/discountistreatedasfinancecost.Theportion 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 balancesheetdateisclassifiedascurrentliability. • 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 lifeofthefinancialassettothegrosscarryingamount ofafinancialasset.Whencalculatingtheeffective interest rate, the Group estimates the expected cash flows by considering all the contractual terms of thefinancialinstrument(forexample,prepayment, extension, call and similar options) but does not consider the expected credit losses. • Dividends Dividend income is recognised in the consolidated statementofprofitandlossonlywhentherightto receive payment is established, provided it is probable thattheeconomicbenefitsassociatedwiththe 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 providesufficientandsustainablereturnrelative 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 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 recognisedasanassetifsuchcostprovidesabenefit in terms of improved access to ore in future periods andcertaincriteriaaremet.Whenthebenefitfrom 467 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 strippingactivityassetarenotseparatelyidentifiable, 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 usefullifeoftheidentifiedcomponentoftheorebody. 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 propertywillnotprovidesufficientandsustainable returns relative to the risks and the Group decides not to proceed with the mine development. Commercial reserves are proved and probable reserves asdefinedbythe‘JORC’Code,‘MORC’codeor ‘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 ofprofitandloss. 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 onafield-by-fieldbasis.Subsequentexpenditureis capitalised only where it either enhances the economic benefitsofthedevelopment/producingassetor replaces part of the existing development/producing asset. Any remaining costs associated with the part replaced are expensed. 468 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 consolidatedstatementofprofitandlosstothe 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. Subsequently, property plant and equipment is measured at cost less accumulated depreciation and accumulated impairment losses, if any. Ifsignificantpartsofanitemofproperty,plantand 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 statementofprofitandlossfortheperiodduringwhich such expenses are incurred. An item of property, plant and equipment is derecognised upon disposal or when no future economicbenefitsareexpectedtoarisefromthe continued use of the asset. 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 includedintheconsolidatedstatementofprofitand 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 capitalised in the assets under Capital work in progress. 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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. 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. Capital work in progress is carried at cost less accumulated impairment losses, if any. Estimated useful life of assets are as follows Asset Useful life (in years) v) Depreciation, depletion and amortisation expense Buildings (Residential; factory etc.) Mining properties and other assets in the course of development or construction and freehold land and goodwill 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 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 Allexpenditurescarriedwithineachfieldareamortised 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 theproductionintheperiod,generallyonafield- by-fieldbasisorgroupoffieldswhicharerelianton 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. Plant and equipment Railway siding Officeequipment Furnitureandfixture Vehicles 3-60 15-40 15 3-6 8-10 8-10 Major inspection and overhaul costs are depreciated overtheestimatedlifeoftheeconomicbenefittobe derived from such costs. The carrying amount of the remaining previous overhaul cost is charged to the consolidatedstatementofprofitandlossifthenext overhaul is undertaken earlier than the previously estimatedlifeoftheeconomicbenefit. The Group reviews the residual value and useful lifeofanassetatleastateachfinancialyear-end and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate. (E) Intangible assets 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, andalsocontrolsanysignificantresidualinterest 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 469 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 consolidatedstatementofprofitandlosswhenthe asset is derecognised. The amortization period and the amortization method arereviewedatleastateachfinancialyearend.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. (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. 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 priortoreclassification. Exploration expenditure includes all direct and allocated indirect expenditure associated with findingspecificmineralresourceswhichincludes depreciation and applicable operating costs of related support equipment and facilities and other costs of exploration activities: 470 • • 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 asinglefieldcostcentrewithinproperty,plantand 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 theconsolidatedstatementofprofitandloss. 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 capitalisedcosts.Anysurplus/deficitisrecognisedin theconsolidatedstatementofprofitandloss. (G) Non-current assets held for sale Non-currentassetsanddisposalgroupsareclassified as held for sale if their carrying amount will be recovered through a sale transaction rather than NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 yearfromthedateofclassification. Non-currentassetsanddisposalgroupsclassifiedas 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. (H) Impairment of non-financial assets Impairment charges and reversals are assessed at the level of cash-generating units. A cash-generating unit (CGU)isthesmallestidentifiablegroupofassetsthat 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. 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 therisksspecifictotheassetforwhichestimatesof future cash flows have not been adjusted. Value in useisdeterminedbyapplyingassumptionsspecific 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 intheconsolidatedstatementofprofitandloss. 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. 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 amount is calculated, as the higher of fair value less costs of disposal and the asset's value in use. 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: 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 effectsoffactorsthatmaybespecifictotheGroup 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. • the period for which the Group has the right to exploreinthespecificareahasexpiredduringthe period or will expire in the near future, and is not expected to be renewed; • substantive expenditure on further exploration for andevaluationofmineralresourcesinthespecific area is neither budgeted nor planned; • exploration for and evaluation of mineral resources inthespecificareahavenotledtothediscoveryof commercially viable quantities of mineral resources and the Group has decided to discontinue such activitiesinthespecificarea; 471 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED • sufficientdataexisttoindicatethat,although adevelopmentinthespecificareaislikelyto 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. 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 specifieddatestocashflowsthataresolely payments of principal and interest (SPPI) on the principal amount outstanding. Whenapotentialimpairmentisidentified,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 theconsolidatedstatementofprofitandloss. (I) Financial instruments Afinancialinstrumentisanycontractthatgivesriseto afinancialassetofoneentityandafinancialliabilityor equity instrument of another entity. • Afterinitialmeasurement,suchfinancialassetsare 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 ofprofitandloss.Thelossesarisingfromimpairment arerecognisedinconsolidatedstatementofprofit and loss. Financial assets at fair value through other comprehensive income (FVOCI) A'debtinstrument'isclassifiedasatFVOCIifbothof the following criteria are met: a) The objective of the business model is achieved both by collecting contractual cash flows and sellingthefinancialassets,and Financial assets - recognition and subsequent measurement b) The asset's contractual cash flows represent SPPI. (i) Allfinancialassetsarerecognisedinitiallyatfairvalue plus,inthecaseoffinancialassetsnotrecordedatfair valuethroughprofitorloss,transactioncoststhatare attributabletotheacquisitionofthefinancialasset. Purchasesorsalesoffinancialassetsthatrequire 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. Tradereceivablesthatdonotcontainasignificant financingcomponentaremeasuredattransaction price as per Ind AS 115. Forpurposesofsubsequentmeasurement,financial assetsareclassifiedinfourcategories: • Financial assets at amortised cost A 'Financial asset' is measured at amortised cost if both the following conditions are met: 472 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 recognized intheconsolidatedstatementofprofitandloss. On derecognition of the asset, cumulative gain or loss previously recognised in other comprehensive incomeisreclassifiedfromtheequitytoconsolidated statementofprofitandloss.Interestearnedwhilst holding fair value through other comprehensive income debt instrument is reported as interest income using the EIR method. For equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by-instrument basis. 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS consolidatedstatementofprofitandloss,evenonsale of investment. However, the Company may transfer the cumulative gain or loss within equity. • Financial assets at fair value through profit or loss (FVTPL) FVTPL is a residual category for debt instruments and default category for equity instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVOCI, is classifiedasatFVTPL. In addition, the Group 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 Group has not designated any debt instrument at FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes being recognizedintheconsolidatedstatementofprofit and loss. An equity instrument in the scope of Ind AS 109 is measured at fair value. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination towhichIndAS103appliesareclassifiedasatFVTPL. ForequityinstrumentswhichareclassifiedasFVTPL, all subsequent fair value changes are recognised in the consolidatedstatementofprofitandloss. Further, the provisionally priced trade receivables are marked to market using the relevant forward prices forthefutureperiodspecifiedinthecontractandis adjusted in revenue. (ii) Financial Assets - derecognition TheGroupderecognisesafinancialassetwhen the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive thecontractualcashflowsonthefinancialasset in a transaction in which substantially all the risks andrewardsofownershipofthefinancialasset are transferred. (iii) Impairment of financial assets In accordance with Ind AS 109, the Group applies expected credit loss ("ECL") model for measurement and recognition of impairment loss on the following financialassets: 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 receivecashoranotherfinancialassetthatresult from transactions that are within the scope of Ind AS 115. TheGroupfollows'simplifiedapproach'forrecognition of impairment loss allowance on trade receivables, contract assets and lease receivables. The application ofsimplifiedapproachdoesnotrequiretheGroup 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 lossonotherfinancialassetsandriskexposure,the Groupdetermineswhethertherehasbeenasignificant increase in the credit risk since initial recognition. If creditriskhasnotincreasedsignificantly,12-month ECL is used to provide for impairment loss. However, ifcreditriskhasincreasedsignificantly,lifetimeECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longerasignificantincreaseincreditrisksinceinitial 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 lifeofafinancialinstrument.The12-monthECLisa 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 recognized as income/ expense in consolidated statementofprofitandloss.Thebalancesheet presentationforvariousfinancialinstrumentsis described below: a) 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. 473 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED b) Debt instruments measured at FVOCI: Since financialassetsarealreadyreflectedatfairvalue, 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,theGroupcombinesfinancialinstrumentson the basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed toenablesignificantincreasesincreditrisktobe identifiedonatimelybasis. The Group does not have any purchased or originatedcredit-impaired(POCI)financialassets, i.e.,financialassetswhicharecreditimpairedon purchase/ origination. (iv) Financial liabilities – Recognition and Subsequent measurement Financialliabilitiesareclassified,atinitialrecognition, asfinancialliabilitiesatfairvaluethroughprofitor loss, or as loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Allfinancialliabilitiesarerecognisedinitiallyat fairvalue,andinthecaseoffinancialliabilities at amortised cost, net of directly attributable transaction costs. TheGroup'sfinancialliabilitiesincludetradeand other payables, loans and borrowings including bank overdrafts,financialguaranteecontractsandderivative financialinstruments. Themeasurementoffinancialliabilitiesdependson theirclassification,asdescribedbelow: Gains or losses on liabilities held for trading are recognisedintheconsolidatedstatementofprofit and loss. Financial liabilities designated upon initial recognition atfairvaluethroughprofitorlossaredesignated as such at the initial date of recognition, and onlyifthecriteriainIndAS109aresatisfied.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 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 consolidatedstatementofprofitandloss.TheGroup hasnotdesignatedanyfinancialliabilityatfairvalue throughprofitorloss. Further, the provisionally priced trade payables are marked to market using the relevant forward prices for thefutureperiodspecifiedinthecontract. • 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 consolidatedstatementofprofitandlosswhenthe 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 EIRamortisationisincludedasfinancecostsinthe consolidatedstatementofprofitandloss. Financial liabilities at fair value through profit or loss (v) Financial liabilities - Derecognition Financialliabilitiesatfairvaluethroughprofitorloss includefinancialliabilitiesheldfortradingandfinancial liabilities designated upon initial recognition as at fairvaluethroughprofitorloss.Financialliabilities areclassifiedasheldfortradingiftheyareincurred for the purpose of repurchasing in the near term. This categoryalsoincludesderivativefinancialinstruments entered into by the Group that are not designated as hedginginstrumentsinhedgerelationshipsasdefined by Ind AS 109. Separated embedded derivatives are alsoclassifiedasheldfortradingunlesstheyare designated as effective hedging instruments. Afinancialliabilityisderecognisedwhentheobligation under the liability is discharged or cancelled or expires.Whenanexistingfinancialliabilityisreplaced by another from the same lender on substantially different terms, or the terms of an existing liability aresubstantiallymodified,suchanexchangeor modificationistreatedasthederecognitionofthe original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognisedintheconsolidatedstatementofprofit and loss. • 474 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (vi) Embedded derivatives (viii) Offsetting of financial instruments 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 tobemodifiedaccordingtoaspecifiedinterestrate, financialinstrumentprice,commodityprice,foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financialvariablethatthevariableisnotspecific to a party to the contract. Reassessment only occurs if there is either a change in the terms of the contract thatsignificantlymodifiesthecashflowsthatwould otherwiseberequiredorareclassificationofafinancial assetoutofthefairvaluethroughprofitorloss. Ifthehybridcontractcontainsahostthatisafinancial asset within the scope of Ind AS 109, the Group does not separate embedded derivatives. Rather, it appliestheclassificationrequirementscontainedin 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 atfairvaluethroughprofitorloss.Theseembedded derivatives are measured at fair value with changes in fair value recognised in the consolidated statement ofprofitandloss,unlessdesignatedaseffective 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. The Company recognises a liability to pay dividend to equity holders of the company when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution with respect to interim dividend is authorised when it is approved by the boardofdirectorsoftheCompanyandfinaldividendis authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. Financialassetsandfinancialliabilitiesareoffset 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 otherderivativefinancialinstruments.TheGroup doesnotholdderivativefinancialinstrumentsfor speculative purposes. Suchderivativefinancialinstrumentsareinitially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives arecarriedasfinancialassetswhenthefairvalueis positiveandasfinancialliabilitieswhenthefairvalue is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to the consolidatedstatementofprofitandloss,except for the effective portion of cash flow hedges, which isrecognisedinOCIandlaterreclassifiedtothe consolidatedstatementofprofitandlosswhen thehedgeitemaffectsprofitorlossortreatedas basis adjustment if a hedged forecast transaction subsequently results in the recognition of a non- financialassetornon-financialliability. For the purpose of hedge accounting, hedges are classifiedas: • • Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liabilityoranunrecognisedfirmcommitment; 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 firmcommitment; • Hedges of a net investment in a foreign operation; 475 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 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 thefinancialreportingperiodsforwhichthey were designated. Hedges that meet the strict criteria for hedge accounting are accounted for, as described below: (i) Fair value hedges Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognisedintheconsolidatedstatementofprofit and loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. Whenanunrecognisedfirmcommitmentisdesignated as a hedged item, the subsequent cumulative change inthefairvalueofthefirmcommitmentattributableto the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in the consolidatedstatementofprofitandloss.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 immediatelyintheconsolidatedstatementofprofit and loss. Amounts recognised in OCI are transferred to the consolidatedstatementofprofitandlosswhenthe hedgedtransactionaffectsprofitorloss,suchaswhen thehedgedfinancialincomeorfinancialexpenseis recognised or when a forecast sale occurs. When the hedgeditemisthecostofanon-financialassetor 476 non-financialliability,theamountsrecognisedinOCI are transferred to the initial carrying amount of the non-financialassetorliability. 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 foreigncurrencyfirmcommitmentismet. (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 intheconsolidatedstatementofprofitandloss.On disposal of the foreign operation, the cumulative value of any such gains or losses recorded in equity is reclassifiedtotheconsolidatedstatementofprofitand loss(asareclassificationadjustment). (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 righttocontroltheuseofanidentifiedassetfora 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 ofanassetareclassifiedasoperatingleases. 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. Leasesareclassifiedasfinanceleaseswhen substantially all of the risks and rewards of ownership transfer from the Group to the lessee. Amounts due fromlesseesunderfinanceleasesarerecordedas 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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. (i) Right-of-use assets 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 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.Theleasepaymentsincludefixedpayments (and,insomeinstances,in-substancefixedpayments) 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 isremeasuredifthereisamodification,achangein 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 disclosed on the face of Balance sheet. (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- valueassetsrecognitionexemptiontoleasesofoffice 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. (L) Inventories 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 costonafirst-in,first-out(“FIFO”)basis;allother 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 cost 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. 477 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Inventories of 'Fuel Stock' mainly consist of coal which is used for generating power. On consumption, the cost is charged off to 'Power and Fuel' expenses in the consolidatedstatementofprofitandloss. (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 consolidatedstatementofprofitandlossoverthe 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 valueamountsandreleasedtoprofitorlossoverthe expected useful life in a pattern of consumption of the benefitoftheunderlyingasset. 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 applicabletofinancialliabilities. (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 478 amountsforfinancialreportingpurposesandoncarry 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 accountingprofitnortaxableprofit(taxloss);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 the consolidated statementofprofitandlossisrecognisedoutsidethe consolidatedstatementofprofitandloss(eitherin 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 probablethatsufficienttaxableprofitwillbeavailable 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 statementofprofitandloss/othercomprehensive 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 definedbenefitsanddefinedcontributionschemes,the assets of which (where funded) are held in separately administeredfunds.Fordefinedbenefitschemes, thecostofprovidingbenefitsundertheplansis determined by actuarial valuation each year separately for each plan using the projected unit credit method by thirdpartyqualifiedactuaries. Remeasurement including, effects of asset ceiling and return on plan assets (excluding amounts included ininterestonthenetdefinedbenefitliability)and actuarial gains and losses arising in the year are recognised in full in other comprehensive income and arenotrecycledtotheconsolidatedstatementofprofit and loss. Past service costs are recognised in the consolidated statementofprofitandlossontheearlierof: • • 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 ratetothenetdefinedbenefitliabilityorassetatthe beginningoftheperiod.Definedbenefitcostsaresplit 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 withinemployeebenefitexpense.Netinterestexpense orincomeisrecognizedwithinfinancecosts. Fordefinedcontributionschemes,theamount chargedtotheconsolidatedstatementofprofit and loss in respect of pension costs and other post retirementbenefitsisthecontributionspayableinthe 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 benefitsexpense.Thefairvalueisexpensedover 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 recognized 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, whereappropriate,therisksspecifictotheliability. Unwinding of the discount is recognized in the consolidatedstatementofprofitandlossasafinance 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 479 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED confirmedbytheoccurrenceornon-occurrenceofone 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 thefinancialstatementswhenaninflowofeconomic benefitisprobable. TheGrouphassignificantcapitalcommitmentsin relation to various capital projects which are not recognized 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 productionofamineoroilfields.Suchcosts, 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 consolidatedstatementofprofitandlossoverthelife 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 unwindingofthediscountisshownasfinancecostin theconsolidatedstatementofprofitandloss. 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 andchargedtotheconsolidatedstatementofprofit 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 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 environmentinwhichitoperates.Thefinancial statements are presented in Indian rupee (`). Inthefinancialstatementsofindividualgroup 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 consolidatedstatementofprofitandlossexceptthose where the monetary item is 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. Forthepurposesoftheconsolidationoffinancial statements, items in the consolidated statement of profitandlossofthosebusinessesforwhichthe 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 statementofprofitandloss. 480 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The Group had applied paragraph 46A of AS 11 under Previous GAAP. Ind AS 101 gives an option, which hasbeenexercisedbytheGroup,wherebyafirst time adopter can continue its Indian GAAP policy for accounting for exchange differences arising from translation of long-term foreign currency monetary itemsrecognisedintheIndianGAAPfinancial statements for the period ending immediately before thebeginningofthefirstIndASfinancialreporting 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 consolidatedstatementofprofitandloss. (T) Earnings per share The Group presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is calculatedbydividingtheprofitorlossattributableto equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting theprofitorlossattributabletoequityshareholders 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 andfinancialinstitutionsmakedirectpaymentsto suppliers for raw materials and project materials. Thebanksandfinancialinstitutionsaresubsequently repaid by the Group at a later date providing working capitaltimingbenefits.Thesearenormallysettled between twelve months (for raw materials) to thirty six 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. Interest expense on these are recognised in the financecost.Paymentsmadebybanksandfinancial 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 substance 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 tobefinancinginnature,andthesearepresented 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 andfinancialinstitutionaretreatedascashflowsfrom financingactivity. (V) Current and non-current classification The Group presents assets and liabilities in the consolidated balance sheet based on current / non- currentclassification. Anassetisclassifiedascurrentwhenitsatisfiesany of the following criteria: • • • • it is expected to be realized 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 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. Allotherassetsareclassifiedasnon-current. Aliabilityisclassifiedascurrentwhenitsatisfiesany 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 notaffectitsclassification. 481 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Allotherliabilitiesareclassifiedasnon-current. Deferredtaxassetsandliabilitiesareclassifiedasnon 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 intangibleasset.Wherefundsareborrowedspecifically tofinanceaqualifyingcapitalproject,theamount capitalised represents the actual borrowing costs incurred. Where surplus funds are available out of moneyborrowedspecificallytofinanceaqualifying capital project, the income generated from such short- term investments is deducted from the total capitalized borrowingcost.Ifanyspecificborrowingremains outstanding after the related asset is ready for its intended use or sale, that borrowing then becomes part ofgeneralborrowing.Wherethefundsusedtofinance 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 consolidatedstatementofprofitandlossintheyearin 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 lifeofthefinancialliabilityorashorterperiod,where appropriate,totheamortisedcostofafinancial liability. When calculating the effective interest rate, the Group estimates the expected cash flows by 482 consideringallthecontractualtermsofthefinancial instrument (for example, prepayment, extension, call and similar options). (X) Treasury shares TheGrouphascreatedanEmployeeBenefitTrust (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.Nogainorlossisrecognisedinprofitorlosson 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,wouldbesatisfiedwithtreasuryshares. (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 insignificantriskofchangesinvalue. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-termdeposits,asdefinedabove. (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 financialinformationallowsanunderstandingofthe 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 36. NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 3(b) Application of new and amended standards (A) The Group has adopted, with effect from 01 April 2022, the following new and revised standards. Theiradoptionhasnothadanysignificantimpact on the amounts reported in the consolidated financialstatements. 1. 2. 3. 4. Amendment to Ind AS 37 regarding costs that an entity needs to include when assessing whether a contract is onerous or loss-making. Amendment to Ind AS 109 Financial Instrument regarding inclusion of fees in the ’10 per cent’ test forderecognitionoffinancialliabilities. Amendment to Ind AS 103 Business Combination, Reference to the Conceptual Framework for Financial Reporting. Amendment to Ind AS 16 Property, Plant and Equipment regarding proceeds before intended use. the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilitiesatthedateoftheseconsolidatedfinancial 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 financialstatements. 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. Theinformationaboutsignificantareasofestimation uncertainty and critical judgements in applying accountingpoliciesthathavethemostsignificant effectontheamountsrecognizedinthefinancial statements are as given below. (B) Standards notified but not yet effective (A) Significant estimates TheMinistryofCorporateAffairshasnotified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023, effective from 01 April 2023, resulting in certain amendments as mentioned below : 1. 2. 3. IndAS1Presentationoffinancialstatements: The amendment requires disclosure of material accountingpoliciesratherthansignificant accounting policies; Ind AS 12 Income Taxes: The amendment clarifiesapplicationofinitialrecognition exemption to transactions such as leases and decommissioning obligations; Ind AS 8 Accounting Policies, Change in Accounting Estimates and Errors: The amendment replacesdefinitionof‘changeinaccounting estimates’withthedefinitionof‘accounting estimates’ These amendments are not expected to have any impactinthefinancialstatementsoftheGroup. 3(c) Significant accounting estimates and judgements Thepreparationofconsolidatedfinancialstatements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and i) 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 profitandlossasexplorationcostsunlesscommercial 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. ii) 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 offsetagainstfuturetaxableprofit.Deferredtaxassets are recognised only to the extent that it is probable thattaxableprofitwillbeavailableagainstwhichthe unused tax losses or tax credits can be utilized. This 483 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED involves an assessment of when those assets are likely to reverse, and a judgement as to whether or not therewillbesufficienttaxableprofitsavailabletooffset the assets. This requires assumptions regarding future profitability,whichisinherentlyuncertain.Totheextent assumptionsregardingfutureprofitabilitychange, 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 profitandloss. The total deferred tax assets recognised in these financialstatementsincludeMATcreditentitlements of ` 9,382 Crore (31 March 2022: ` 6,746 Crore), of which ` 2,689 Crore (31 March 2022: ` 208 Crore) is expectedtobeutilisedinthefourteenthandfifteenth year, the maximum permissible time period to utilise the MAT credits. During year ended 31 March 2021, ESL recognised deferred tax assets of ` 3,184 Crore based on management’sestimateoffutureoutlook,financial projections and requirements of Ind AS 12. During the year ended 31 March 2023, ESL derecognized deferred tax assets on losses expired in the current year amounting to ` 100 Crore (31 March 2022: ` 122 Crore).Basedonrevisedfinancialforecasts,itis probable to realise the remaining deferred tax assets. iii) Copper operations in Tamil Nadu, India Tamil Nadu Pollution Control Board (“TNPCB”) had issued a closure order of the Tuticorin Copper smelter, againstwhichtheCompanyhadfiledanappealwith the National Green Tribunal (“NGT”). NGT had, on 08 August 2013, ruled that the Copper smelter could continue its operations subject to implementation of recommendations of the Expert Committee appointed bytheNGT.TheTNPCBhasfiledanappealagainstthe 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 was rejected by TNPCB in April 2018. The CompanyhasfiledanappealbeforetheTNPCB Appellate Authority challenging the Rejection Order. During the pendency of the appeal, the 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 on the same date 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 484 Health passed orders dated 30 May 2018, directing the immediate suspension and revocation of the Factory LicenseandtheRegistrationCertificatefortheexisting smelter plant. The Company appealed this before the 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 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 directedtheCompanytofileanappealinHighcourt. TheCompanyhasfiledawritpetitionbeforethe Madras High Court challenging the various orders passed against the Company in FY 2018 and FY 2013. On 18 August 2020, the Madras High Court delivered the judgement wherein it dismissed all the WritPetitionsfiledbytheCompany.Thereafter,the Company has approached the Supreme Court and challenged the said High Court order by way of a Special Leave Petition ("SLP"). TheInterlocutoryApplicationsfiledbytheCompany seeking essential care and maintenance of the Plant and removal of materials from the plant premises were heard on 10 April 2023 where the Supreme Court allowed certain activities such as gypsum evacuation, operationofSecuredLandfill(SLF)leachate sumppump,BundrectificationofSLFandgreen- belt maintenance. On 4 May 2023, Honourable Supreme Court further directed the State of Tamil Nadu to conclude on any further supplementary directions to be issued with regard to the care & maintenance of the Plant by 01 June2023.TheSLPisnowlistedforhearingandfinal disposal at the top of the TNPCB on 22 August 2023 and 23 August 2023. 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS anymaterialadjustmentstothesefinancialstatements as a consequence of above actions. The Company has carried out an impairment analysis for existing plant assets during the year ended 31 March 2023 considering various scenarios and possibilities, and concluded on balance of probabilities that there exists no impairment. The carrying value of the assets as at 31 March 2023 is ` 1,913 Crore (31 March 2022: ` 1,982 Crore). Expansion Project: Separately,theCompanyhasfiledafreshapplication for renewal of the Environmental Clearance for the proposed Copper Smelter Plant 2 ("Expansion Project") dated 12 March 2018 before the Expert Appraisal Committee of the Ministry of Environment, Forests and Climate Change ("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 Madras High Court 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 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 also appealed this action before the TNPCB Appellate Authority. The matter has been adjourned until the conclusion of special leave petition filedbeforetheSupremeCourt. 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 appealed this action before the TNPCB Appellate Authority. The matter has been adjourned until the conclusionofspecialleavepetitionfiledbeforethe Supreme Court. 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. The net carrying value of ` 17 Crore as at 31 March 2023 (31 March 2022: ` 41 Crore) approximates its recoverable value. Property, plant and equipment of ` 1,033 Crore (31 March 2022: ` 1,213 Crore) and inventories of ` 269 Crore (31 March 2022: ` 301 Crore), pertaining to existing and expansion plant, could not be physically verified,anytimeduringtheyear,astheaccesstothe plant is presently restricted. However, any difference between book and physical quantities is unlikely to be material. (iv) ESLSteelLimited("ESL"),hadfiledapplicationfor renewalofCTOon24August2017fortheperiodoffive years which was denied by Jharkhand State Pollution Control Board ("JSPCB") on 23 August 2018, as JSPCB awaited response from the MoEFCC over a 2012 show-cause notice. After a personal hearing towards the show cause notice, the MoEFCC revoked the Environment Clearance ("EC") on 20 September 2018. The 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 matterforfinalhearing.ESLurgentlyfiledapetition in the Hon’ble Supreme Court, and on 22 September 2020, ESL was granted permission to run the plant till further orders. The Forest Advisory Committee ("FAC") of the MoEFCC granted the Stage 1 clearance and the MoEFCC approved the related Terms of Reference ("TOR") on 25 August 2020. ESL presented its proposal before the Expert Appraisal Committee ("EAC") after completing the public consultation process and the same has been recommended for grant of EC subject to Forest Clearance by the EAC in its 41st meeting dated 29 and 30 July 2021. Vide letter dated 25 August 2021, the MoEFCC rejected the EC “as of now” due to stay granted by Madras High Court vide order dated 15 July 2021inaPublicInterestLitigationfiledagainstthe Standard Operating Procedure which was issued by the MoEFCC for regularization of violation case on 07 July 2021. The Hon’ble Supreme Court vide order dated 09 December 2021 decided the matter by directing the MoEFCC to process the EC application of ESL as per the applicable law within a period of three months. The MoEFCC vide its letter dated 02 February 2022 has deferred the grant of EC till Forest Clearance ("FC") Stage-II is granted to ESL. ESL has submitted its reply against the MoEFCC letter vide letter dated 11 February 485 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 2022 for reconsidering the decision of linking EC with FC as the grant of FC Stage – II is not a condition precedent for grant of EC. As per Stage 1 clearance, the Group is required to provide non-forest land in addition to the afforestation cost. The Group, based on the report of an Environment Impact Assessment consultant, had recognised a provision of ` 213 Crore as part of exceptional item during the year ended 31 March 2021 with respect to the costs to be incurred by it for obtaining EC and an additional ` 7 Crore wasprovidedagainstfinalorderrelatingtowildlife conservation plan received during the year ended 31 March 2022. Management believes no further provision is required. Estimates/ assumptions Basis Discount rates cost of capital risk-adjusted for the risk specifictotheasset/CGU Any subsequent changes to cash flows due to changes in the above mentioned factors could impact the carrying value of the assets. Details of carrying values and impairment charge/ (reversal) and the assumptions used are disclosed in note 6 and 36 respectively. (vii) Climate Change (v) Oil and Gas reserves Significanttechnicalandcommercialjudgements 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 at least annually. Details of such reserves are given in note 44. 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). (vi) Carrying value of developing/producing oil and gas assets Management performs impairment tests on the Company’s developing/producing oil and gas assets whereindicatorsofimpairmentareidentifiedin accordance with Ind AS 36. The impairment assessments are based on a range of estimates and assumptions, including: Estimates/ assumptions Basis Future production Commodity prices 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 Period For Rajasthan block, cash flows are considered based on economic life of the fields. 486 The Group aims to achieve net carbon neutrality by 2050, has committed reduction in emission by 25% by 2030 from 2021 baseline, net water positivity by 2030 as part of its climate risk assessment and has outlined its climate risk assessment and opportunities in the ESG strategy. Climate change may have various impacts on the Group in the medium to long term. These impacts include the risks and opportunities related to the demand of products and services, impact due to transition to a low-carbon economy, disruption to the supply chain, risk of physical harm to the assets due to extreme weather conditions, regulatory changes etc. The accounting related measurement and disclosure items that are most impacted by our commitments, and climate change risk more generally, relatetothoseareasofthefinancialstatementsthat are prepared under the historical cost convention and are subject to estimation uncertainties in the medium to long term. The potential effects of climate change may be on assets and liabilities that are measured based on an estimate of future cash flows. The main ways in which potential climate change impacts have beenconsideredinthepreparationofthefinancial statements, pertain to (a) inclusion of capex in cash flow projections, (b) review of estimates of useful lives of property, plant and equipment, (c) recoverable amounts of existing assets, (d) assets and liabilities carried at fair value. The Group's strategy consists of mitigation and adaptation measures. The Group is committed to reduce its carbon footprint by limiting its exposure to coal-based projects and reducing its GHG emissions through high impact initiatives such as investment in Renewable Energy (1,826 MW on a group captive basis),fuelswitch,electrificationofvehiclesand miningfleetandenergyefficiencyopportunities. Renewable sources have limitations in supplying NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS events and it is probable that the Group will be required to settle that obligation. Where it is management’s assessment that the outcomecannotbereliablyquantifiedorisuncertain, 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 providedforinthefinancialstatements. Whenconsideringtheclassificationoflegalortax cases as probable, possible or remote, there is judgement involved. This pertains to the application of the legislation, which in certain cases is based uponmanagement’sinterpretationofcountryspecific applicable law, in particular India, and the likelihood of settlement. Management uses in-house and external legal professionals to make informed decision. Althoughtherecanbenoassuranceregardingthefinal outcome of the legal proceedings, the Group does not expect them to have a materially adverse impact on the Group’sfinancialpositionorprofitability.Theseareset outinnote40.Forothersignificantlitigationswhere the possibility of an outflow of resources embodying economicbenefitsisremote,refernote41. (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 PurchaseAgreements(PPA).Significantjudgement 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 Group has obtained in relation to the claims. In addition, the fact that the contracts are with government owned companies implies that the credit risk is low (refer note 8). 4 Business Combinations/ Acquisitions/ Restructuring A. Athena Chhattisgarh Power Limited On 21 July 2022, the Company acquired Athena Chhattisgarh Power Limited ("ACPL"), an unrelated party, under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016 for a consideration of ` 565 Crore, subject to National Company Law Tribunal (“NCLT”) approval. ACPL is building a 1,200 MW (600 MW X 2) coal-based power plant located at Jhanjgir Champa district, 487 round the clock power, so existing power plants would support transition and fleet replacement is part of normal lifecycle renewal. The group has also taken certain measures towards water management such as commissioning of sewage treatment plants, rainwater harvesting, and reducing fresh water consumption. These initiatives are aligned with the group's ESG strategyandnomaterialchangeswereidentifiedtothe financialstatementsasaresult. As the Group’s assessment of the potential impacts of climate change and the transition to a low-carbon economy continues to mature, any future changes in Group's climate change strategy, changes in environmental laws and regulations and global decarbonisation measures may impact the Group's significantjudgmentsandkeyestimatesandresultin changestofinancialstatementsandcarryingvaluesof certain assets and liabilities in future reporting periods. However, as of the balance sheet date, the Group believes that there is no material impact on carrying values of its assets or liabilities. (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 thesubsidiariesandaStategridqualifiestobe 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 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 27. (ii) Contingencies and other litigations 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 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Chhattisgarh.Theplantisexpectedtofulfilthepower requirements for the Company’s aluminium business. TheCompanyhadfileditsapplicationwiththeNCLT in July 2022 and further amended the application in November 2022 praying for merger of ACPL with itself. The Company has requested various reliefs from the applicable legal and regulatory provisions as part of the above applications. The NCLT approval of the Company’s resolution application is pending as on the balance sheet date. On consolidation, the consideration paid for acquisition of ACPL represents mainly Capital work in progress. B. Amalgamation of Facor Power Limited into Ferro Alloys Corporation Limited During the current year, Hon’ble National Company Law Tribunal, Cuttack Bench vide its Order dated 15 November 2022 approved the Scheme of Amalgamation of Facor Power Limited (“FPL”) into Ferro Alloys Corporation Limited (“FACOR”). FPL was a subsidiary of FACOR which in turn is a subsidiary of the Company. Post the amalgamation becoming effective on 21 November 2022, the Company directly holds 99.99% in FACOR. There is no material impact on theconsolidatedfinancialstatementsoftheGroupdue to this amalgamation. 5 Segment Information A) Description of segment and principal activities TheGroupisadiversifiednaturalresourcegroup 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, steel, cement 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 zinc and lead India), Zinc international, oil and gas and others. The management of the Group is organized by its main products: copper, Zinc (comprises zinc and lead India, silver India and zinc international), aluminium, iron ore, oil and gas, power and others. "Others" segment mainly comprises port/berth, steel, glass substrate, ferro alloys and cement 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 productsandhencethesehavebeenidentifiedas reportable segments by the Group’s chief operating decision maker (“CODM”). Segment Revenue, Results, Assets and Liabilities includetherespectiveamountsidentifiableto 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. The operating segments reported are the segments of the Group for which separatefinancialinformationisavailable.Earningsbefore 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’sfinancing(includingfinancecostsandfinance 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. Thefollowingtablepresentsrevenueandprofit information and certain assets and liabilities information regarding the Group’s business segments as at and for the year ended 31 March 2023 and 31 March 2022 respectively. 488 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS For the year ended 31 March 2023 Business Segments (` in Crore) Zinc India Zinc International Oil & Gas Aluminium Copper Iron Ore Power Others Eliminations Total Particulars Revenue External revenue 33,120 5,209 15,038 52,360 17,491 6,046 6,982 9,158 - 1,45,404 Inter segment revenue - - - 43 - 457 218 88 (806) - Segment revenue 33,120 5,209 15,038 52,403 17,491 6,503 7,201 9,245 (806) 1,45,404 Results Segment results (EBITDA) a 17,474 3,290 161 1,934 487 7,782 2,577 5,837 2,490 (4) 194 988 146 851 689 379 682 - (327) 87 2 8 16 1 22,848 6,846 24,485 64,238 5,104 5,375 16,495 10,977 Less: Depreciation, depletion and amortisation Add: Other income, net of expenses b, c Add: Other unallocable income, net of expenses Less: Finance costs Less: Net exceptional loss Netprofitbeforetax 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 6,399 1,076 14,985 26,436 5,249 2,597 2,339 3,694 Deferred tax liabilities Borrowing Income tax liabilities (net of payments) Others Total liabilities Capital expenditure d Net impairment reversal relating to assets 3,811 - 1,242 3,647 5,972 127 - 18 - - 512 644 631 1,303 - 109 a) EBITDA is a non-GAAP measure. b) c) d) Includesamortisationofdutybenefitsrelatingtoassetsrecognisedasgovernmentgrant. Includes cost of exploration wells written off in Oil & Gas segment. Includes capital expenditure of ` 22 Crore which is not allocable to any segment. - - - 35,241 10,555 (52) 2,084 6,225 217 20,276 1,56,368 13,150 8,495 2,891 9,948 5,504 1,96,356 62,775 5,922 66,182 1,601 10,449 1,46,929 - - 17,267 771 489 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED For the year ended 31 March 2022 Business Segments (` in Crore) Zinc India Zinc International Oil & Gas Aluminium Copper Iron Ore Power Others Eliminations Total Particulars Revenue External Revenue 28,624 4,484 12,430 50,809 15,151 6,233 5,501 7,960 - 1,31,192 Inter segment revenue - - - 72 - 117 325 12 (526) - Segment revenue 28,624 4,484 12,430 50,881 15,151 6,350 5,826 7,972 (526) 1,31,192 Results Segment results (EBITDA) a 16,161 2,951 139 1,533 513 5,992 1,633 17,337 (115) 2,280 1,082 1,049 2,238 208 118 685 549 - - 80 2 8 15 1 22,822 6,984 24,149 60,407 5,912 4,156 16,977 9,197 Less: Depreciation, depletion and amortisation Add: Other income b Add: Other unallocable income, net of expenses Less: Finance costs Less: Net exceptional loss Netprofitbeforetax 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 6,229 1,159 16,138 20,013 5,028 2,601 1,976 2,694 Deferred tax liabilities Borrowing Income tax liabilities (net of payments) Others Total liabilities Capital expenditure c Net (impairment)/ reversal or (write off)/ write back relating to assets d 3,705 - 1,016 1,805 - 79 3,535 (125) 8 - 298 - 105 1,250 - (52) Includesamortisationofdutybenefitsrelatingtoassetsrecognisedasgovernmentgrant. a) EBITDA is a non-GAAP measure. b) c) Total of capital expenditure includes capital expenditure of ` 20 Crore which is not allocable to any segment. d) Includes write off of ` 24 Crore which is not allocable to any segment. 490 - - - 45,319 8,895 245 1,860 4,797 768 32,964 1,50,604 17,291 5,085 2,787 15,805 6,810 1,98,382 55,838 4,435 53,109 917 1,379 1,15,678 - - 11,742 (122) NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS 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 Europe China The United States of America Mexico Others Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 87,099 18,360 5,296 3,839 4,619 26,191 1,45,404 73,619 21,028 9,667 3,487 2,311 21,080 1,31,192 Thefollowingisananalysisofthecarryingamountofnon-currentassets,excludingdeferredtaxassetsandfinancial 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 C) Information about major customer (` in Crore) As at 31 March 2023 As at 31 March 2022 1,11,637 5,316 888 1,041 1,632 1,20,514 1,07,915 5,105 990 893 646 1,15,549 No single customer has accounted for more than 10% of the Group’s revenue for the year ended 31 March 2023 and 31 March 2022. D) Disaggregation of Revenue Below table summarises the disaggregated revenue from contracts with customers Particulars (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 24,709 Zinc metal 4,240 Lead metal 4,215 Silver metals and bars 10,275 Oil 1,712 Gas 51,253 Aluminium products 14,281 Copper products 2,354 Iron ore 406 Metallurgical coke 4,123 Pig iron 3,886 Power 5,698 Steel products 830 Ferro alloys 3,119 Others Revenue from contracts with customers* 1,31,101 1,381 Revenue from contingent rents (1,290) Losses on provisionally priced contracts under Ind AS 109 1,31,192 Total revenue * includes revenues from sale of services aggregating to ` 326 Crore (31 March 2022: ` 301 Crore) which is recorded over a period of time. 29,002 4,821 4,577 12,448 2,807 52,356 17,070 2,328 463 4,059 5,288 6,272 768 3,725 1,45,984 1,543 (2,123) 1,45,404 The balance revenue from contracts with customers is recognised at a point in time. 491 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED l t n e m p o e v e d r e d n u s t e s s a e b g n a t n l i i t n e m p o e v e d l I ) P W C ( ) w o e b l s s e r g o r p - n i - k r o w l a t i p a c i g n d u c n l i l a t o T i l e b g n a t n i n o i t a r o p x E l l n o i t a r o p x E d n a r e d n u s t e s s a l a t i p a C - n i - k r o w s s e r g o r p l a t o T f o t h g R i s t e s s a e s U e c fi f O e t o n r e f e R ( t n e m p u q e i l s e c h e V i e r u t i n r u F s a g & l i O d n a i g n c u d o r p s e r u t x fi s e i t i l i c a f i g n n M i d n a t n a P l y t r e p o r p t n e m p u q e i s g n d i l i u B d n a L l d o h e e r F s r a l u c i t r a P ) e r o r C n i ` ( 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 l n o i t a r o p x E d n a s s e r g o r p - n i - k r o w l a t i p a C , 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 P l , y t r e p o r P 6 492 , 6 5 3 1 9 2 , ) 1 1 ( 0 7 6 0 1 , ) 8 3 3 1 ( , ) 8 1 6 2 ( , 9 0 1 5 , , 8 6 1 3 0 3 , 1 3 6 4 8 3 6 1 , ) 3 5 6 2 ( , ) 7 2 3 ( 3 3 0 2 1 , , 6 3 2 9 2 3 , - 8 4 5 9 , 7 7 9 ) 6 5 1 ( 2 3 0 7 , 0 3 2 5 4 , ) 9 3 9 7 ( , 1 6 6 2 , 4 8 0 8 , , 8 7 5 6 3 2 , 0 6 7 1 , 5 1 1 ) 7 9 6 ( ) 6 1 1 ( ) 2 2 2 1 ( , ) 9 ( ) 8 1 6 2 ( , - - 0 3 0 1 , 2 1 8 3 , - 7 7 6 2 8 1 0 8 , 2 4 5 1 , ) 8 4 1 ( - 2 1 7 ) 7 2 3 ( 7 9 7 9 , 9 6 8 1 , 2 5 4 9 , 2 6 3 0 5 , , 7 7 0 9 6 2 , - - 7 3 2 5 4 , 1 1 1 2 1 , ) 5 5 8 8 ( , - 1 3 7 2 , 4 3 6 9 , - 7 5 1 ) 3 5 6 2 ( , ) 0 1 ( , 3 1 9 9 4 2 , 6 7 1 1 , 4 6 1 1 , , 3 1 6 5 8 1 , 4 1 1 7 , 0 5 3 1 3 , , 9 4 1 7 4 1 , 1 0 8 8 , ) 4 7 9 ( ) 2 7 6 2 ( , - 1 3 5 4 , 6 5 3 0 1 , ) 8 4 5 1 ( , ) 1 7 7 ( 4 4 6 9 5 9 1 1 , , 9 9 2 5 9 1 , - - ) 3 5 9 ( - 8 0 2 9 6 3 6 , - - 8 9 5 - 4 7 5 - 4 2 ) 5 6 ( - - 5 9 8 ) 7 9 1 1 ( , 7 0 0 1 3 , 1 0 8 8 , ) 9 0 9 ( ) 3 4 7 1 ( , 7 9 1 1 , 8 2 4 3 , 6 5 3 0 1 , ) 8 4 5 1 ( , , 3 2 9 7 5 1 , ) 3 5 7 ( ) 6 1 6 ( 6 6 1 8 7 4 8 0 5 2 , 7 7 8 8 , , 9 3 9 5 1 2 , 1 4 5 7 , 8 2 9 2 3 , , 0 7 4 5 7 1 , 4 9 2 1 5 0 1 , , 3 4 7 5 0 1 , , 9 6 8 7 0 1 , , 7 9 2 3 1 1 , 4 3 4 2 , 9 4 6 1 , 6 5 2 2 , 0 8 8 3 1 , 0 3 2 4 1 , 9 2 4 9 8 , 0 9 9 1 9 , 0 6 9 7 3 4 1 , 4 3 4 7 1 , 7 0 6 3 9 , 0 3 0 1 , 0 9 1 7 2 1 4 1 1 - 1 4 2 3 1 , 3 2 3 3 6 ) 9 ( - ) 2 6 1 ( 1 7 8 6 1 2 ) 0 1 ( - - 1 2 7 7 ) 9 ( - 6 1 8 7 0 1 , 5 6 8 - ) 8 7 ( ) 2 1 ( 5 6 1 1 , 8 8 8 8 3 1 ) 7 ( - - 8 1 7 3 0 1 , - 0 1 1 ) 6 7 ( ) 3 ( ) 7 1 ( 2 5 3 6 7 3 ) 1 1 ( - - 2 0 4 9 1 ) 1 ( ) 4 1 ( - ) 0 1 ( 6 9 3 7 2 1 4 3 ) 7 ( - - - 4 5 1 7 3 ) 9 ( - - ) 8 ( 4 7 1 9 4 2 8 4 2 2 2 2 9 9 ) 3 5 ( - 3 7 6 4 8 4 3 7 1 ) 2 ( - - 2 9 2 5 6 3 ) 2 5 ( - 3 ) 1 ( 4 4 3 8 0 1 4 3 1 3 2 1 6 5 4 8 6 9 9 8 , 9 6 7 6 1 , , 3 3 1 9 0 1 , 0 0 9 4 1 , 8 3 1 2 , 1 2 2 2 ) 3 ( - 3 2 3 1 4 7 6 ) 8 ( - 3 2 8 2 , 8 3 6 ) 3 3 ( 7 5 0 2 , - 6 5 2 8 3 4 1 , 4 6 8 5 , ) 6 5 0 1 ( , - 8 1 6 4 1 1 4 3 1 ) 7 ( - 8 7 1 9 6 2 - 1 1 ) 6 8 ( 9 9 4 9 8 5 3 9 , 7 8 6 9 1 , , 7 9 9 5 1 1 , 9 1 2 5 1 , 0 8 1 2 , - - 0 4 4 2 , ) 4 8 2 ( - 6 7 5 ) 3 1 ( 7 4 5 2 , - 1 9 7 1 , 5 8 1 4 , ) 7 9 1 2 ( , 1 1 6 8 , ) 2 7 5 ( 7 3 2 1 , 7 5 1 4 4 - 3 1 3 6 1 8 6 3 - 1 3 ) 7 1 ( , 3 1 0 1 2 1 , 3 9 8 5 1 , 8 3 2 2 , , 6 5 3 4 0 1 , - 8 7 8 0 0 5 7 8 , ) 3 4 7 1 ( , 1 6 2 5 2 7 2 , 1 4 5 1 , 1 2 6 9 8 , ) 6 ( ) 6 0 2 ( 2 1 3 3 3 8 7 , 5 2 2 2 2 , 6 3 9 9 , 8 3 9 1 , - - - 3 0 1 - 6 4 2 5 , ) 5 5 8 ( 9 9 4 8 9 0 1 , 4 2 2 2 , 7 4 7 5 , 7 7 9 1 1 , 2 1 9 6 4 , - - ) 2 ( ) 7 3 2 ( ) 0 1 4 ( ) 2 9 3 1 ( , 6 6 1 7 0 1 1 , 5 9 0 9 9 , 2 6 9 3 1 , 0 3 1 2 5 , 8 6 4 2 , 8 6 9 3 , 1 6 2 5 , 3 3 8 6 , 0 1 7 7 , 3 6 2 8 , 9 0 2 8 6 , 5 8 0 9 6 , 3 8 8 8 6 , - - 8 7 4 ) 1 ( 1 7 1 7 5 6 0 3 7 , 6 - - 4 7 1 7 5 0 8 , 2 4 1 8 , 3 1 9 7 , 6 3 8 7 , 9 5 4 3 ) 8 2 ( - - 9 5 3 3 0 1 ) 7 ( - - 5 2 3 6 3 3 9 7 1 , 5 4 8 1 , 5 7 8 1 , 4 2 9 0 4 , 8 5 7 6 , ) 5 3 e t o n r e f e R ( f f o n e t t i r w t s o c n o i t a r o p x E l s e c n e r e f f i d e g n a h c x E 2 2 0 2 h c r a M 1 3 t a s A s n o i t i d d A j s t n e m t s u d A / s a s o p s D i l ) i i ( , ) 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 ) 5 3 e t o n r e f e R ( f f o n e t t i r w 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 u m u c c A l 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 s e c n e r e f f i d e g n a h c x E 3 2 0 2 h c r a M 1 3 t a s A 1 2 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 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 ) 6 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 t n e m p u q E d n a t n a P l , y t r e p o r P 1 2 0 2 l i r p A 1 0 t a s A l k c o B s s o r G s n o i t i d d 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 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 ) ) l ( 6 e t o n r e f e R ( s e c n e r e f f i d e g n a h c x E 2 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 t n u o m A g n i y r r a C / e u a V k o o B t e N l s e c n e r e f f i d e g n a h c x E 3 2 0 2 h c r a M 1 3 t a s A 2 2 0 2 h c r a M 1 3 t a s A 3 2 0 2 h c r a M 1 3 t a s A 1 2 0 2 l i r p A 1 0 t a s A ) i i ( , ) 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 ) 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 l . e r o r C 4 4 6 ` o t g n i t n u o m a k c o b s s o r G y t r e p o r P g n n M o t t n e m i i r i a p m I l I d e t a u m u c c A P W C m o r f n o i t a c fi s s a c e r / r e f s n a r T l i l . s t e s s a f o s s a c e v i t c e p s e r o t P W C f o n o i t a s I i l a t i p a c s e d u c n l i j i y l r o a m n o i t a c fi s s a c e r / s r e f s n a r T l ) i ( ) i i ( NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS ROU Land ROU Building ROU Plant and Equipment (` in Crore) Total 962 92 (5) (8) (6) 1,035 112 (10) - 1,137 120 41 (8) - (2) 151 53 (10) - 194 842 884 943 61 4 - (1) 1 65 1 - 3 69 29 13 (1) - - 41 12 - 2 55 32 24 14 737 19 (692) - 12 76 44 - (2) 118 174 9 - (162) 3 24 22 - (1) 45 563 52 73 Software License Right to use (refer note k) Mining Rights Port concession rights (refer note i) Brand & Technological know-how 384 16 11 7 418 14 7 (152) (67) 220 355 17 8 380 22 (153) (67) 182 29 38 38 144 - - - 144 - - (144) - - 25 6 - 31 4 (35) - - 119 113 - 601 539 - - 1,140 824 - - - 1,964 360 50 - 410 169 - - 579 241 730 1,385 684 1 - - 685 - 6 (1) - 690 195 25 - 220 25 - - 245 489 465 445 236 - - (15) 221 - - - (1) 220 73 24 (6) 91 21 - - 112 163 130 108 1,760 115 (697) (9) 7 1,176 157 (10) 1 1,324 323 63 (9) (162) 1 216 87 (10) 1 294 1,437 960 1,030 (` in Crore) Total 2,049 556 11 (8) 2,608 838 13 (297) (68) 3,094 1,008 122 2 1,132 241 (188) (67) 1,118 1,041 1,476 1,976 493 Right of Use (ROU) Assets Particulars Gross Block As at 01 April 2021 Additions Transfers/Reclassification Disposals/ Adjustments Exchange differences As at 31 March 2022 Additions Disposals/ Adjustments Exchange differences As at 31 March 2023 Accumulated depreciation & impairment As at 01 April 2021 Charge for the year Disposals/ Adjustments Transfers/Reclassification Exchange differences As at 31 March 2022 Charge for the year Disposals/ Adjustments Exchange differences As at 31 March 2023 Net Book Value As at 01 April 2021 As at 31 March 2022 As at 31 March 2023 Particulars Intangible assets Gross Block As at 01 April 2021 Additions Transfers/Reclassification Exchange differences As at 31 March 2022 Additions Transfers/Reclassification Disposals/ Adjustments Exchange differences As at 31 March 2023 Accumulated amortisation and impairment As at 01 April 2021 Charge for the year Exchange differences As at 31 March 2022 Charge for the year Disposals/ Adjustments Exchange differences As at 31 March 2023 Net Book Value/Carrying Amount As at 01 April 2021 As at 31 March 2022 As at 31 March 2023 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 6 Capital Work in Progress (CWIP) ageing schedule Particulars Less than 1 year 1-2 years 2-3 years More than 3 years Total As at 31 March 2023 As at 31 March 2022 Projects in progress Projects temporarily suspended Projects in progress Projects temporarily suspended (` in Crore) 8,674 1,878 534 5,690 16,776 7 2 5 644 658 4,548 1,096 1,943 5,982 13,569 3 5 33 620 661 CWIP completion schedule for projects whose completion is overdue or has exceeded its cost compared to its original plan Particulars Projects in progress Lanjigarh alumina 2-5 MTPA expansion project Oil & Gas development CWIP projects Others* Projects temporarily suspended** As at 31 March 2023 To be completed in As at 31 March 2022 To be completed in Less than 1 year 1-2 years 2-3 years More than 3 years Less than 1 year 1-2 years 2-3 years More than 3 years (` in Crore) 6,666 330 2,576 11 21 135 - - - - - - - - - 371 4,147 1,930 1,437 11 884 572 545 - - - - - - - - 371 * Includes projects which are individually less than 10% of CWIP balance. ** Excludes completion schedule for the Copper 4 LTPA Expansion project which is on hold due to restrictions imposed by the State government (Refer note 3(c)(A)(iii)). Exploration intangible assets under development ageing schedule Intangible assets under development Less than 1 year 1-2 years 2-3 years More than 3 years Total Title deeds of immovable properties not held in the name of Company As at 31 March 2023 As at 31 March 2022 Projects in progress Projects in progress (` in Crore) 729 577 536 414 2,256 624 534 352 139 1,649 (` in Crore) Relevant line item in the Balance sheet Description of item of property Gross block as at 31 March 2023 Gross block as at 31 March 2022 Title deeds held in the name of Whether title deed holder is a promoter, director or relative of promoter/ director or employee of promoter/ director Property held since which date Reason for not being held in the name of the company Property, Plant and Equipment Land & Building 3,524 3,061 Oil & Natural Gas No Corporation Limited (ONGC) & Cairn India Ltd 10 April 2009 The title deeds of Oil & Gas exploration blocks jointly owned by the JV partners are in the name of ONGC, being the licensee of these exploration blocks. 494 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Relevant line item in the Balance sheet Property, Plant and Equipment Description of item of property Gross block as at 31 March 2023 Gross block as at 31 March 2022 Title deeds held in the name of Whether title deed holder is a promoter, director or relative of promoter/ director or employee of promoter/ director Land 4 4 National Thermal No Power Corporation Ltd (NTPC) Property held since which date 20 June 2002 (` in Crore) Reason for not being held in the name of the company The 206.18 acres land transferred to BALCO by NTPC is yet to be registered in favour of BALCO due to non-availability of title deeds from NTPC. In the matter, arbitration was held where the Arbitrator passed the award in favour of BALCO but directed that transfer of title deeds of land will be effected by the Central Government with the assistance of State Government. The matter is sub-judice before the Delhi High Court. Land ROU Land Land 53 50 20 53 Erstwhile company No No No 50 Sterlite Industries (India) Limited, that merged with the Company 20 Erstwhile company Vedanta Aluminium Limited, that merged with the Company * Multiple dates of acquisitions during the period disclosed. 1965-2012* The title deeds are in the names of erstwhile 1993-2009* companies that merged with the Company under Section 391 to 394 of the erstwhile Companies Act, 1956 pursuant to Schemes of Amalgamation and Arrangement as approved by the Honourable High Courts. 2008-2012* a) Plantandequipmentincluderefineries,smelters,powerplants,railwaysidings,ships,riverfleetsandrelatedfacilities. b) c) d) e) During the year ended 31 March 2023, interest capitalised was ` 483 Crore (31 March 2022: ` 313 Crore). Certain property, plant and equipment are pledged as security 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 which have been occupied withoutauthorisationforwhichGroupisevaluatingevacuationoptionsandtheGrouphasfiledthecivilsuitsforthesame. 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,ithasbeenallegedthatthelandinpossessionofBALCOisbeingusedincontraventionoftheForestConservation Act, 1980 even though the said land has been in its possession prior to the 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 landinpossessionofBALCO.BALCOhasalsofiledtwoInterlocutoryApplications(IAs)beforetheSupremeCourt, firstchallengingtheorderoftheTehsildarKorbawherebyherejectedBALCO’sapplicationsforevictionofillegal 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. The matter is to be listed for hearing in the due course. f) 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 ` 10,534 Crore (31 March 2022: ` 10,665 Crore). g) InaccordancewiththeexemptiongivenunderIndAS101,whichhasbeenexercisedbytheGroup,afirsttimeadopter can continue its previous GAAP policy for accounting for exchange differences arising from translation of long- 495 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED termforeigncurrencymonetaryitemsrecognisedinthepreviousGAAPfinancialstatementsfortheperiodending immediatelybeforethebeginningofthefirstIndASfinancialreportingperiod,i.e.,01April2016. 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 ` 11 Crore (31 March 2022: ` 22 Crore) are adjusted to the cost of respective item of property, plant and equipment. h) 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 and other adjustments As per Consolidated Statement of Profit and Loss (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 10,356 241 10,597 - (42) 10,555 8,801 122 8,923 (4) (24) 8,895 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 carriedoutonadesign,build,finance,operate,transferbasisandtheconcessionagreementbetweenVisakhapatnam Port Trust ('VPT') and the Company was signed in June 2010. In October 2010, the Company was awarded with theconcessionafterfulfillingconditionsstipulatedasaprecedenttotheconcessionagreement.Visakhapatnam port trust has provided, in lieu of license fee an exclusive license to the Company for designing, engineering, financing,constructing,equipping,operating,maintaining,andreplacingtheproject/projectfacilitiesandservices. 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.ThetariffratesarelinkedtotheWholesalePriceIndex(WPI)andwouldaccordinglybeadjusted asspecifiedintheconcessionagreementeveryyear.Theownershipofallinfrastructureassets,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. The Company has entered into a supplementary agreement to the original concession agreement with VPT dated 20 October 2021, wherein VPT can handle other compatible cargos at VGCB during idling of the berth. Intangible asset port concession rights represents consideration for construction services. No revenue from construction contract of service concession arrangements on exchanging construction services for the port concession rights was recognised for the years ended 31 March 2023 and 31 March 2022. As at 31 March 2023, TSPL's assets consisting of land (including ROU land), building and plant and machinery having net carrying value of ` 399 Crore (31 March 2022: ` 391 Crore), ` 153 Crore (31 March 2022: ` 169 Crore) and ` 8,228 Crore (31 March 2022: ` 8,640 Crore) respectively have been given on operating lease (refer note 3(c)(B)(i)). During the current year, consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), HZL has transferred its CSR assets, after obtaining regulatory approvals, having carrying value of ` 117 Crore as on the date of transfer, at nominal consideration to Zinc India Foundation (a wholly owned subsidiary of HZL), incorporated during the current year under Section 8 of the Companies Act, 2013. The carrying value of these assets hasbeenincludedasCSRexpenseinthefinancialstatementsowingtosuchtransfer. i) j) k) 496 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS l) (i) During the year ended 31 March 2023, the Group has recognized a net impairment reversal of ` 616 Crore (after considering impairment reversal of ` 1,236 Crore on account of ONGC partial arbitration award (refer note (ii) for details)) on its assets in the oil and gas producing facilities and impairment charge of ` 598 Crore on its assets in the oil and gas exploration intangible assets under development mainly due to revision of Reserve and Capex estimates. The recoverable amount of the Company’s share in Rajasthan Oil and Gas cash generating unit “RJ CGU” was determined to be ` 10,179 Crore (US $ 1,239 million) as at 31 March 2023. The recoverable amount of the RJ CGU 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 the Company’s view of the assumptions that would be used by a market participant. This is based on the cash flows expected to be generatedbytheprojectedoilandnaturalgasproductionprofilesupto2040,theexpecteddatesofcessation ofproductionsharingcontract(PSC)/cessationofproductionfromeachproducingfieldbasedonthecurrent 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 $ 84 per barrel for the next one year and tapers down to long-term nominal price of US $ 73 per barrel three years thereafter derived from a consensus of various analyst recommendations. Thereafter, these have been escalated at a rate of 2.4% per annum. The cash flows are discounted using the post-tax nominal discount rate of 10.99% derived from the post-tax weighted average cost of capital after factoring in the risks ascribed to PSC extension including successful implementation of key growth projects. 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 ` 74 Crore (US $ 9 million) and ` 378 Crore (US $ 46 million) respectively. (ii) In the Oil and Gas business, the Group operates the Rajasthan Block under a joint venture model with ONGC. As the operator of the block, the Company raises cash calls to ensure the smooth functioning of the petroleum operations. During the current year ended 31 March 2023, the Group received a favourable partial arbitration award on cash call claims made from ONGC, pursuant to which, reversal of previously recorded impairment of ` 1,236 Crore (US$ 155 million) has been recognised against capitalised development costs. The Group had a liability towards ONGC of ` 1,507 Crore (US$ 199 million) as of 31 March 2022 on account of revenue received in excess of entitlement. Based on the partial arbitration award, the Group has adjusted the claims received in the favour of the Group against the liability towards ONGC and the net payable as of 31 March 2023 amounts to ` 279 Crore (US$ 34 million) 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 Investment in Equity Shares - unquoted Sterlite Power Transmission Limited - 19,05,718 equity shares of ` 2 each (31 March 2022: 9,52,859 equity shares of ` 2 each) Investment in Bonds - quoted (II) Investments at fair value through profit and loss Investment in Bonds - quoted Infrastructure Leasing & Financial Services Limited Investment in Optionally Convertible Redeemable Preference Shares - unquoted Serentica Renewable Power Companies - 24,90,00,000 shares of ` 10 each (31 March 2022: NIL) (Refer Note 40) (` in Crore) As at 31 March 2023 As at 31 March 2022 70 11 153 30 249 107 11 - 30 - 497 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Particulars (III) Investment in Equity Shares (fully paid) Associate Companies and Joint ventures – unquoted Gaurav Overseas Private Limited - 14,23,000 equity shares of ` 10 each (31 March 2022: 4,23,000 equity shares of ` 10 each) RoshSkor Township (Proprietary) Limited - 50 equity shares of NAD 1 each 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 Less: Impairment in the value of investment (IV) Others Total Aggregate amount of quoted investments, and market value thereof Aggregate amount of unquoted investments Aggregate amount of impairment in the value of investments Total B) Current Investments Particulars Investments carried at fair value through other comprehensive income (fully paid) Investment in Bonds - quoted* Investments carried at fair value through profit and loss (fully paid) Investment in mutual funds - quoted Investment in mutual funds - unquoted Investment in bonds - quoted Investment in commercial paper - quoted Investment in India Grid Trust - quoted Total (` in Crore) As at 31 March 2023 As at 31 March 2022 1 0 2 0 0 (2) 0 514 253 263 (2) 514 0 3 2 0 0 (2) 0 151 137 16 (2) 151 (` in Crore) As at 31 March 2023 As at 31 March 2022 4,239 - 4,563 3,834 - - - 1,196 7,207 8,587 150 0 12,636 17,140 * Includes investments amounting to ` 1,812 Crore (31 March 2022: ` Nil Crore) are pledged as security for repurchase liability (Refer Note 19(c)). The Group continues to record these investments as it retains rights to contractual cash flows on such investments and thus do not meetthecriteriaforderecognitionortransferoffinancialassetasperIndAS107. Particulars Aggregate amount of quoted investments, and market value thereof Aggregate amount of unquoted investments Total (` in Crore) As at 31 March 2023 As at 31 March 2022 8,073 4,563 12,636 9,933 7,207 17,140 498 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 8 Financial assets - Trade receivables Particulars Secured, Undisputed Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years Sub-total Unsecured, disputed Unbilled dues Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years Sub-Total Unsecured, Undisputed Unbilled dues Not due Less than 6 months 6 months -1 year 1-2 Years 2-3 years More than 3 years Sub-Total Less: Provision for expected credit loss Total As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current Total (` in Crore) - - - - - - - 34 26 189 241 441 389 2,585 3,905 - - - - - - - - (1,373) 2,532 319 292 6 - - 3 620 - - 14 - - - 7 21 98 2,242 1,007 17 23 4 5 3,396 (23) 4,014 319 292 6 - - 3 620 34 26 203 241 441 389 2,592 3,926 98 2,242 1,007 17 23 4 5 3,396 (1,396) 6,546 - - - - - - - 43 28 246 126 651 442 2,515 4,051 - 1 1 - - - - 2 (1,052) 3,001 186 57 - - - 3 246 - - 19 - 21 9 14 63 0 2,233 2,361 19 36 1 15 4,665 (28) 4,946 186 57 - - - 3 246 43 28 265 126 672 451 2,529 4,114 0 2,234 2,362 19 36 1 15 4,667 (1,080) 7,947 a) b) c) d) e) The credit period given to customers is up to 180 days. Also refer note 24 (C)(d) For amount due and terms and conditions of related party receivables, refer note 42. In a matter between TSPL and Punjab State Power Corporation Limited (PSPCL) 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 appealinJuly2017filedbyTSPL.TSPLlaterfiledanappealbeforetheHonourableSupremeCourttoseekrelief,whichisyettobe listed. The outstanding trade receivables in relation to this dispute and other matters is ` 1,476 Crore as at 31 March 2023 (31 March 2022: `1,725Crore).TheGroup,basedonexternallegalopinionanditsownassessmentofthemeritsofthecase,remainsconfidentthatit is highly probable that the Supreme court will uphold TSPL’s appeal and has thus continued to treat these balances as recoverable. Trade receivables includes ` 878 Crore (net of Provision for expected credit loss ("ECL") of ` 157 Crore recognised during the year on account of time value of money) as at 31 March 2023 (31 March 2022: ` 1,097 Crore) withheld by GRIDCO Limited ("GRIDCO") primarily on account of reconciliation and disputes relating to computation of power tariffs and alleged short-supply of power by the Group under the terms of long term power supply agreement. Out of the above, ` 374 Crore (net of ECL of ` 74 Crore recognised during the year on account of time value of money) relates to the amounts withheld by GRIDCO due to tariff adjustments on account of transmission line constraints in respect of which GRIDCO’s appeal against order of APTEL is pending before the Hon’ble Supreme Court of India and ` 234 Crore (net of ECL of ` 47 Crore) relates to alleged short supply of power for which the Group’s appeal on certain grounds are pending before APTEL. The total trade receivables as at 01 April 2021 were ` 6,431 Crore (net of provision for expected credit loss). 499 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 9 Financial assets - Loans Particulars Unsecured, considered good Loans to related parties (Refer note 42) Loans and advances to employees Unsecured, considered credit impaired Loans to related parties (Refer note 42) Less: Provision for expected credit loss Total 10 Financial assets - Others Particulars Bank deposits a, b, c Site Restoration asset c Unsecured, considered good Receivables from related parties (Refer note 42) Security deposits Others Advance recoverable (oil and gas business) Others d Unsecured, considered credit impaired Security deposits Balance with government authorities Others d Less: Provision for expected credit loss Total As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current Total (` in Crore) 9 1 - - 10 3,749 11 87 (87) 3,760 3,758 12 87 (87) 3,770 3,164 2 - - 3,166 2,298 6 78 (78) 2,304 5,462 8 78 (78) 5,470 As at 31 March 2023 As at 31 March 2022 Non-current Current 688 1,228 - 345 - 1,523 43 - 584 (627) 3,784 - - 18 57 7,622 171 1 3 241 (245) 7,868 Total 688 1,228 18 402 7,622 1,694 44 3 825 (872) 11,652 Non-current Current 444 1,023 - 187 - 1,438 43 - 565 (608) 3,092 - - 151 54 8,176 343 1 3 436 (440) 8,724 (` in Crore) Total 444 1,023 151 241 8,176 1,781 44 3 1,001 (1,048) 11,816 a) b) c) d) Bankdepositsincludesfixeddepositwithmaturitymorethantwelvemonthsof` 208 Crore (31 March 2022: ` NIL Crore) under lien with bank, ` 208 Crore (31 March 2022: ` 101 Crore) reserve created against principal payment on loans from banks, restricted funds of ` 146 Crore (31 March 2022: ` 156 Crore) held as interest reserve created against interest payment on loans from banks and margin money of ` 39 Crore (31 March 2022: ` 39 Crore). Restricted funds of ` 7 Crore (31 March 2022: ` 5 Crore) held as lien with Others, ` 58 Crore (31 March 2022: ` 61 Crore) held as margin money against bank guarantees and ` 2 Crore (31 March 2022: `NILCrore)heldasfixeddepositforclosurecost. Bankdepositsandsiterestorationassetearninterestatfixedratebasedonrespectivedepositrates. GovernmentofIndia(GoI)videOfficeMemorandum(“OM”)No.O-19025/10/2005-ONG-DVdated01February2013allowedfor Exploration in the Mining Lease Area after expiry of Exploration period and prescribed the mechanism for recovery of such Exploration Costincurred.VideanotherMemorandumdated24October2019,GoIclarifiedthatallapprovedExplorationcostsincurredon Exploration activities, both successful and unsuccessful, are recoverable in the manner as prescribed in the OM and as per the provisions of PSC. Accordingly, the Group has started recognizing revenue for past exploration costs, through increased share in the jointoperationsrevenueastheGroupbelievesthatcostrecoverymechanismprescribedunderOMforprofitpetroleumpayabletoGoI is not applicable to its Joint operation partner, a view which is also supported by an independent legal opinion. At year end, an amount of ` 1,718 Crore (US$ 209 million) (31 March 2022: ` 1,581 Crore (US$ 209 million)) is receivable from its joint operation partner on account of this. However, the Joint operation partner carries a different understanding and the matter is pending resolution. 500 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 11 Other assets Particulars Unsecured, considered good Capital advances Advances other than capital advances Advances for supplies to related party (Refer note 42) Advances for supplies Others Balance with government authorities a Others b Unsecured, considered doubtful Capital advances Advance for supplies Balance with government authorities Claims and other receivables Others b Less: Provision for doubtful advances Total As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current Total (` in Crore) 1,747 - 1,747 1,702 25 40 809 985 188 - 3 1,068 (1,259) 3,606 1,663 2,128 1,525 1,177 - 76 109 4 (189) 6,493 1,688 2,168 2,334 2,162 188 76 112 61 - 761 918 185 - 3 1,072 (1,448) 10,099 1,021 (1,209) 3,442 - 84 1,702 145 2,706 2,706 1,084 1,399 - 74 12 6 (92) 5,273 1,845 2,317 185 74 15 1,027 (1,301) 8,715 a) b) Includes ` 66 Crore (31 March 2022: ` 58 Crore), being Company’s share of gross amount of ` 97 Crore (31 March 2022: ` 86 Crore) 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. 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 (` in Crore) As at 31 March 2023 As at 31 March 2022 2,864 2,239 5,081 - 1,028 - 1,598 241 1,915 46 2,906 1,471 5,039 1 783 46 1,279 833 1,909 46 15,012 14,313 a) b) c) Inventory held at net realisable value of ` 2,051 Crore as at 31 March 2023 (31 March 2022: ` 2,707 Crore). A write down of inventories amounting to ` 113 Crore (31 March 2022: ` 172 Crore) has been charged to the consolidated statement of profitandlossduringtheyear. For method of valuation for each class of inventories, refer Note 3(a)(L). 501 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 13 Cash and cash equivalents Particulars Balances with banks a Bank deposits with original maturity of less than 3 months (including interest accrued thereon) b Cash on hand Total (` in Crore) As at 31 March 2023 As at 31 March 2022 6,078 848 0 6,926 5,408 3,263 0 8,671 a) b) Including foreign inward remittances aggregating ` 325 Crore (US$ 40 million) (31 March 2022: ` 3,495 Crore (US$ 462 million) held by banks in their nostro accounts on behalf of the Group. Bankdepositsearninterestatfixedratebasedonrespectivedepositrates. 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, c Bank deposits with original maturity of more than 12 months (including interest accrued thereon) c, d Earmarked unpaid dividend accounts e, f Earmarked escrow account g Total (` in Crore) As at 31 March 2023 As at 31 March 2022 859 0 1,467 2 2,328 2,053 4,164 465 2 6,684 a) b) c) d) e) f) g) The above bank deposits includes ` 97 Crore (31 March 2022: ` 441 Crore) on lien with banks, margin money of ` 41 Crore (31 March 2022: ` 40 Crore). ` 42 Crore (31 March 2022: ` 40 Crore) held as collateral in respect of closure costs, ` 22 Crore (31 March 2022: ` 6 Crore) held as lien with Others and ` 63 Crore (31 March 2022: ` 57 Crore) held as margin money against bank guarantees. Bankdepositsearninterestatfixedratebasedonrespectivedepositrates. Includes ` 0 Crore (31 March 2022: `4Crore)marginmoneywithbanksandfixeddepositunderlienwithothersof` 0 Crore (31 March 2022: ` 15 Crore). Includes ` 1,322 Crore (31 March 2022: ` NIL Crore) in unpaid dividend account of a subsidiary. Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed dividends or unpaid dividend as per the provisions of the Companies Act, 2013. 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) B) Issued, subscribed and paid up Equity shares of ` 1 each with voting rights a, b Total As at 31 March 2023 As at 31 March 2022 Number (in Crore) Amount (` in Crore) Number (in Crore) Amount (` in Crore) (` in Crore) 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 3,05,832 (31 March 2022: 3,05,832) equity shares kept in abeyance. These shares are not part of listed equity capital and pending allotment as they are sub-judice. Includes 40,05,075 (31 March 2022: 86,93,406) equity shares held by Vedanta Limited ESOS Trust (Refer Note 16). 502 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS C) Shares held by ultimate holding company and its subsidiaries* Particulars Twin Star Holdings Limited Finsider International Company Limited Welter Trading Limited Vedanta Holdings Mauritius II Limited Vedanta Holdings Mauritius Limited Vedanta Netherlands Investment BV Total As at 31 March 2023 As at 31 March 2022 No. of Shares held (in Crore) % of holding No. of Shares held (in Crore) % of holding (` in Crore) 172.48 16.35 3.82 49.28 10.73 0.50 253.16 46.40 4.40 1.03 13.26 2.89 0.13 68.11 172.48 16.35 3.82 49.28 10.73 6.35 259.01 46.40 4.40 1.03 13.26 2.89 1.71 69.69 * The % of holding has been calculated on the issued and subscribed share capital as at the respective balance sheet date. All the above entities are subsidiaries of Volcan Investments Limited, the ultimate holding company. D) Details of shareholders holding more than 5% shares in the Company * Particulars Twin Star Holdings Limited Vedanta Holdings Mauritius II Limited Life Insurance Corporation of India (` in Crore) As at 31 March 2023 As at 31 March 2022 No. of Shares held (in Crore) % of holding No. of Shares held (in Crore) % of holding 172.48 49.28 33.54 46.40 13.26 9.02 172.48 49.28 32.11 46.40 13.26 8.64 * The % of holding has been calculated on the issued and subscribed share capital as at respective balance sheet dates. As per the records of the Company, including its register of shareholders/members, the above shareholding represents legal ownership of shares. E) Disclosure of Shareholding of Promoters and Promoter Group Particulars Twin Star Holdings Limited Finsider International Company Limited Welter Trading Limited Vedanta Holdings Mauritius II Limited Vedanta Holdings Mauritius Limited Vedanta Netherlands Investment BV Mr. Pravin Agarwal Ms. Suman Didwania Mr. Ankit Agarwal Ms. Sakshi Mody Total As at 31 March 2023 As at 31 March 2022 No. of Shares held (in Crore) % of holding % Change during the year No. of Shares held (in Crore) % of holding (` in Crore) 172.48 16.35 3.82 49.28 10.73 0.50 0.00 0.01 0.00 0.00 46.40 4.40 1.03 13.26 2.89 0.13 0.00 0.00 0.00 0.00 - - - - - (1.58) - - - - 172.48 16.35 3.82 49.28 10.73 6.35 0.00 0.01 0.00 0.00 46.40 4.40 1.03 13.26 2.89 1.71 0.00 0.00 0.00 0.00 253.17 68.11 (1.58) 259.02 69.69 503 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED F) Other disclosures i) ii) 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. 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 2,00,038 equity shares (31 March 2022: 1,99,373 equity shares) of `1eachpendingclearancefromNSDL.TheCompanyhasfiledanapplicationinHon'bleHighCourt ofMumbaitocanceltheseshares,thefinaldecisiononwhichispending.Hon'bleHighCourtofJudicatureatMumbai, vide its interim order dated 06 September 2002 restrained any transaction with respect to subject shares. 16 Other equity (Refer consolidated statement of changes in equity) a) General reserve: Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer ofnetincomeataspecifiedpercentageinaccordancewithapplicableregulations.Thepurposeofthesetransfers 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 introductionofCompaniesAct,2013("Act"),therequirementtomandatorytransferaspecifiedpercentageofthenet profittogeneralreservehasbeenwithdrawn. (i) The Board of Directors of the Company, on 29 October 2021, approved the Scheme of Arrangement between the Company and its shareholders under Section 230 and other applicable provisions of the Companies Act, 2013 (“Act”) (“Scheme”). The Scheme provides for capital reorganization of the Company, inter alia, providing for transfer of amounts standing to the credit of the General Reserves to the Retained Earnings of the Company with effect from the Appointed Date. Post the requisite approvals obtained from Stock Exchanges and pursuant to the National Company Law Tribunal, Mumbai Bench (“NCLT”) Order dated 26 August 2022 (“NCLT Order”), the proposed scheme was approved by the shareholders with requisite majority on 11 October 2022. TheCompanyisintheprocessofcomplyingwiththefurtherrequirementsspecifiedintheNCLTOrder. (ii) The Board of Directors of HZL, on 21 January 2022, approved the Scheme of Arrangement between HZL and its shareholders under Section 230 and other applicable provisions of the Companies Act, 2013 (“Act”) (“Scheme”). The Scheme provides for capital reorganization of HZL, inter alia, providing for transfer of amounts standing to the credit of the General Reserves to the Retained Earnings of the HZL with effect from the Appointed Date. Post the requisite approvals obtained from Stock Exchanges and pursuant to the National Company Law Tribunal, Mumbai Bench (“NCLT”) Order dated 06 February 2023 (“NCLT Order”), the proposed scheme was approved by the shareholders with requisite majority on 29 March 2023. HZLisintheprocessofcomplyingwiththefurtherrequirementsspecifiedintheNCLTOrder. b) Debenture redemption reserve: As per the earlier provisions under the Act, companies that issue debentures were requiredtocreatedebentureredemptionreservefromannualprofitsuntilsuchdebenturesareredeemed.Companies are required to maintain 25% as a reserve of outstanding redeemable debentures. The amounts credited to the debenture redemption reserve may only be utilized redeem debentures. The MCA vide its Notificationdated16August2019,hadamendedtheCompanies(ShareCapitalandDebenture)Rules,2014,wherein the requirement of creation of Debenture Redemption Reserve has been exempted for certain class of companies. Accordingly, the Company is now not required to create Debenture Redemption Reserve. 504 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS c) Preference share redemption reserve: The Companies Act, 2013 provides that companies that issue preference shares mayredeemthosesharesfromprofitsoftheCompanywhichotherwisewouldbeavailablefordividends,orfrom 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 up capital (securities premiumaccount)ornetincome,beforethesharesareredeemed.Ifprofitsareusedtoredeempreferenceshares, thevalueofthenominalamountofsharesredeemedshouldbetransferredfromprofits(retainedearnings)tothe 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 pursuant to extinguishment of non-controlling interests of erstwhile Cairn India Limited, acquisition of ASI and FACOR. Further, changes in capital reserve are due to recognition/derecognition of put option liability and non controlling interests pertaining to ASI. e) Legal reserve is created at Fujairah Gold FZC in accordance with free zone regulations. f) Treasury share represents 40,05,075 (31 March 2022: 86,93,406) 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 32. 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 2023, NCIs hold an economic interest by virtue of their shareholding of 35.08%, 49.00%, 26.00%, 48.37%, 4.51% and 0.00% in Hindustan Zinc Limited (HZL), Bharat Aluminium Company Limited (BALCO), Black Mountain Mining (BMM), Avanstrate Inc. (ASI), ESL Steel Limited (ESL) and Ferro Alloys Corporation Limited (FACOR) respectively. As at 31 March 2022, NCIs hold an economic interest by virtue of their shareholding of 35.08%, 49.00%, 26.00%, 48.37%, 4.51% and 10.00% in Hindustan Zinc Limited (HZL), Bharat Aluminium Company Limited (BALCO), Black Mountain Mining (BMM), Avanstrate Inc. (ASI), ESL Steel Limited (ESL) and Facor Power Limited (FPL) respectively. The principal place of business of HZL, BALCO, ESL and FACOR is in India, that of BMM is in South Africa, that of Avanstrate Inc. is in Japan, South Korea and Taiwan. ThetablebelowshowssummarizedfinancialinformationofsubsidiariesoftheGroupthathavenon-controllinginterests. 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 BALCO Others Total As at 31 March 2023 (` in Crore) 21,156 14,805 5,257 17,452 8,603 4,649 13,144 15,887 2,748 2,439 4,878 4,373 4,202 3,997 5,915 5,359 7,863 1,153 50,187 21,550 13,611 27,689 20,839 10,004 (a) ` 406 Crore loss attributable to NCI of ASI transferred to put option liability. Refer note 22. 505 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED (a) ` 437 Crore loss attributable to NCI of ASI transferred to put option liability. Refer note 22. Particulars Non-current assets Current assets Non-current liabilities Current liabilities Equity attributable to owners of the Group Non-controlling interests a Particulars Total Income Profit/(loss)aftertaxfortheyear Profit/(loss)attributabletotheequityshareholdersofthe Company Profit/(loss)attributabletothenon-controllinginterests Other comprehensive income/ (loss) during the year Other comprehensive income/ (loss) attributable to the equity shareholders of the Company Other comprehensive income/ (loss) attributable to non- controlling interests Total comprehensive income/ (loss) during the year Total comprehensive income/ (loss) attributable to the equity shareholders of the Company Total comprehensive income/ (loss) attributable to non- controlling interests Dividends paid to non-controlling interests Net cash inflow from operating activities Net cash inflow/ (outflow) from investing activities Netcashoutflowfromfinancingactivities Net cash outflow Particulars Total Income Profitaftertaxfortheyear ProfitattributabletotheequityshareholdersoftheCompany Profitattributabletothenon-controllinginterests Other comprehensive (loss)/ income during the year Other comprehensive (loss)/ income attributable to the equity shareholders of the Company Other comprehensive (loss)/ income attributable to non-controlling interests As at 31 March 2022 HZL BALCO Others Total (` in Crore) 21,234 23,986 4,491 6,094 22,485 12,150 12,362 15,184 3,091 2,612 4,235 4,389 4,217 4,089 8,065 4,231 6,460 954 48,780 31,166 15,168 14,560 33,334 17,321 (` in Crore) For the year ended 31 March 2023 HZL BALCO Others Total 35,465 10,479 6,803 3,676 40 27 13 10,519 6,830 3,689 11,190 15,161 6,529 (23,223) (1,533) 13,496 15,074 (64) (33) (31) 33 17 16 (31) (16) (15) - 1,219 (1,127) (220) (128) 941 657 284 (381) (286) (95) 560 371 189 - 2,511 (1,436) (1,241) (166) 64,035 11,356 7,427 3,929 (308) (242) (66) 11,048 7,185 3,863 11,190 18,891 3,966 (24,684) (1,827) (` in Crore) For the year ended 31 March 2022 HZL BALCO Others Total 30,632 9,593 6,227 3,366 (56) (36) (20) 13,944 2,651 1,352 1,299 (17) (9) (8) 12,270 752 509 243 204 136 68 956 56,846 12,996 8,088 4,908 131 91 40 13,127 Total comprehensive income during the year 9,537 2,634 506 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Particulars Total comprehensive income attributable to the equity shareholders of the Company Total comprehensive income attributable to non-controlling interests Dividends paid to non-controlling interests Net cash inflow from operating activities Net cash outflow from investing activities Netcashoutflowfromfinancingactivities Net cash inflow For the year ended 31 March 2022 HZL BALCO Others Total (` in Crore) 6,191 3,346 2,668 13,291 (87) (11,925) 1,279 1,343 1,291 - 2,610 (183) (2,099) 328 645 311 - 2,902 (2,177) (510) 215 8,179 4,948 2,668 18,803 (2,447) (14,534) 1,822 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. The following table summarizes the capital of the Group: Particulars Cash and cash equivalents (Refer note 13) Other bank balancesa (including interest accrued) (Refer note 14) Non-current Bank depositsa (Refer note 10) Long term investments (Refer note 7A) Short term investments (Refer note 7B) Total cash (a) Non-current borrowings (Note 19A) Current borrowings (Note 19B) Total borrowings (b) Net debt (c=(b-a)) Total equity (d) Total capital (e = equity + net debt) Gearing ratio (times) (c/e) (` in Crore except otherwise stated) As at 31 March 2023 As at 31 March 2022 6,926 732 475 153 12,636 20,922 43,476 22,706 66,182 45,260 49,427 94,687 0.48 8,671 5,860 459 - 17,140 32,130 36,205 16,904 53,109 20,979 82,704 1,03,683 0.20 a) The constituents of ‘total cash’ for the purpose of capital management disclosure include only those amounts of restricted funds that are corresponding to liabilities (e.g., margin money deposits). Restricted funds amounting to ` 1,809 Crore (31 March 2022: ` 807 Crore) have been excluded from ‘total cash’ in the capital management disclosures. 507 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 Less: Current maturities of long term borrowings a Total non-current Borrowings (Net) (A) Current Borrowings (Refer Note 19B) (B) Total Borrowings (A+B) B) Current borrowings Particulars At amortised cost Secured Working capital loan Packing credit in foreign currencies from banks Rupee term loans from banks Amounts due on factoring Current maturities of long term borrowings a Others Unsecured Rupee term loans from banks Loans repayable on demand from banks Commercial paper Working capital loan Amounts due on factoring Current maturities of long term borrowings a Total 508 (` in Crore) As at 31 March 2023 As at 31 March 2022 7,138 5,123 34,398 2,662 3,261 494 2,911 28 31 2,795 4 2 53,724 (10,248) 43,476 22,706 66,182 32,760 2,588 1,233 499 2,814 54 31 499 72 2 45,675 (9,470) 36,205 16,904 53,109 (` in Crore) As at 31 March 2023 As at 31 March 2022 208 300 1,857 22 6,247 - 3,002 2,255 4,714 100 - 565 - 23 - 8,237 12 700 1,000 4,987 9 138 4,001 22,706 1,233 16,904 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS In the event Vedanta Resources Limited (together with its subsidiaries) ceases to be the Company’s majority shareholder, the Group will be required to immediately repay some of its outstanding long-term debt. a) Current maturities of long term borrowings consists of: Particulars Secured Non convertible debentures Term loans from banks - Rupee term loans - Foreign currency term loans External commercial borrowings Others Unsecured Non convertible debentures Term loans from banks Deferred sales tax liability Redeemable preference shares Total (` in Crore) As at 31 March 2023 As at 31 March 2022 51 5,287 27 385 497 2,911 1,070 18 2 2,074 4,321 1,231 113 498 703 499 29 2 10,248 9,470 b) Details of Non-convertible debentures issued by Group have been provided below (Carrying value) Particulars 8.74% due June 2032 9.20% due February 2030 7.68% due December 2024 3m T-bill rate + 240 bp due March 2024* 5.35% due September 2023 0.00% due September 2023 9.20% due December 2022 8.75% due June 2022 Total (` in Crore) As at 31 March 2023 As at 31 March 2022 4,089 2,000 998 800 2,111 51 - - 10,049 - 2,000 997 - 2,814 107 749 1,270 7,937 * The 3-month Treasury bill rate as at 31 March 2023 is 6.34%. c) The Group has taken borrowings in various countries towards funding of its acquisitions, capital expenditure and workingcapitalrequirements.Theborrowingscomprisesfundingarrangementsfromvariousbanksandfinancial 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 non-current borrowings Secured current borrowings Total (` in Crore) As at 31 March 2023 As at 31 March 2022 41,706 8,634 50,340 33,966 8,837 42,803 509 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Facility Category Working capital loans* Security details FirstParipassuchargebywayofmortgage/hypothecationoverthespecified immovableandmovablefixedassetsoftheCompanywithaminimumfixedasset cover of 1.1 times of the outstanding term loan during the period of the facility. Security comprise of assets of the aluminium and power division of the Company, comprising: (i) 1.6 MTPA aluminium smelter along with 1,215 MW Captive power plant ("CPP") at Jharsuguda and, (ii) 1MTPAaluminarefineryalongwith90MWCPPatLanjigarh,Odisha. First pari pasu charge on current assets of FACOR SecuredbysecondparipassuchargeonfixedassetsofTSPLandfirstparipassu charge on current assets of TSPL, both present and future Secured by hypothecation of stock of raw materials, work-in progress, semi- finished,finishedproducts,consumablestoresandspares,billsreceivables,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 First pari passu charge on all current assets of Malco Energy Limited (MEL) External Commercial Borrowings First pari passu charge by way of hypothecation on all present and future movable assetsoftheCompanywithaminimumfixedassetcoverof1.10timesofthe outstanding facility during the period of the facility comprising: (i) 1.6 MTPA (proposed capacity of 1.8 MTPA) aluminium smelter along with 1,215 MW CPP (Captive power plant) at Jharsuguda (ii) 1MTPA(proposedcapacityof6MTPA)aluminarefineryalongwithCPPof90 MW (Captive power plant) at Lanjigarh, Odisha (iii) 2,400 MW Power plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha and (iv) Oil & Gas division comprising RJ-ON-90/1 Oil & Gas Block (Rajasthan), Cambay oilfields,RavvaOil&Gasfields(underPKGM-1block)andOALPblocks. AFirstparipassuchargebywayofhypothecationonthespecifiedmovablefixed assets of the Company pertaining to its manufacturing facilities comprising: (i) aluminarefineryhavingoutputof6MTPAalongwithco-generationcaptive power plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha; (ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda, Odisha Other secured external commercial borrowings Secured by way of charge against all existing assets of FACOR First ranking pari passu charge by way of mortgage over 18.92 acres freehold land in Jharsuguda, Odisha together with the building and structures/ erections constructed/ to be constructed thereon and all the plant and machinery and other furnitureandfixtureserected/installedortobeerected/installedthereonand hypothecationovermovablefixedassetsexcludingcapitalworkinprogressin relationtothealuminiumdivisioncomprising6MTPAaluminarefineryalongwith 90 MW co-generation captive power plant in Lanjigarh, Odisha; and 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW) power plant and 2,400 MW power plant in Jharsuguda, Odisha including its movable plant and machinery, machineryspares,toolsandaccessoriesandothermovablefixedassets. (` in Crore) As at 31 March 2023 As at 31 March 2022 70 - 22 110 300 29 1,224 - 515 50 - - 2,037 1,119 - 52 4,089 114 107 - Securedbywayoffirstparipassuchargeonwholeofthemovablefixedassetsof: 2,000 2,000 (i) aluminarefineryhavingoutputof1MTPAalongwithco-generationcaptive power plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha; and (ii) aluminum smelter having output of 1.6 MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda, Odisha. Additionally, secured by way of mortgage on the freehold land comprising 18.92 acres situated at Jharsuguda, Odisha. Non convertible debentures 510 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Facility Category Security details Non convertible debentures Securedbywayoffirstpari-passuchargeonthespecificmovableFixedAssets. The whole of the movable Fixed Assets both present and future, of the Company in relation to the aluminium division, comprising the following facilities: (` in Crore) As at 31 March 2023 As at 31 March 2022 998 997 Term loans from banks (Includes rupee term loans and foreign currency term loans) (i) 1MTPAaluminarefineryalongwith90MWco-generationcaptivepowerplantin Lanjigarh, Odisha; and (ii) 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW) power plant in Jharsuguda, Odisha including its movable plant and machinery, capital work in progress, machinery spares, tools and accessories, and other movable fixedassets Other secured non-convertible debentures SecuredbyfirstparipassuchargeonfixedassetsofTSPLandsecondparipassu charge on current assets of TSPL, both present and future Securedbyaparipassuchargebywayofhypothecationofallthemovablefixed assets of the Company pertaining to its aluminium division project consisting: (i) aluminarefineryhavingoutputof1MTPA(Refinery)alongwithco-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 1,215 (9x135) MW CPPatJharsuguda,Orissa(Smelter)(theRefinery,PowerPlantandSmelter). Also,afirstparipassuchargebywayofequitablemortgageonthelandpertaining to the mentioned project of aluminium division. Securedbyaparipassuchargebywayofhypothecationonthemovablefixed assetsoftheLanjigarhRefineryExpansionProjectincluding210MWPowerProject. LanjigarhRefineryExpansionProjectshallspecificallyexcludethe1MTPAalumina refineryoftheCompanyalongwith90MWpowerplantinLanjigarhandallits related expansions. Securedbyaparipassuchargebywayofhypothecationonthemovablefixed assets of the Company pertaining to its aluminium division comprising 1 MTPA aluminarefineryplantwith90MWcaptivepowerplantatLanjigarh,Odishaand1.6 MTPA aluminium smelter plant with 1,215 MW captive power plant at Jharsuguda, Odisha. Secured by a pari passu charge by way of hypothecation/ equitable mortgage of themovable/immovablefixedassetsoftheCompanypertainingtoitsaluminium divisioncomprising1MTPAaluminarefineryplantwith90MWcaptivepowerplant at Lanjigarh, Odisha and 1.6 MTPA aluminium smelter plant with 1,215 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 the Company comprising aluminarefineryhavingoutputof1MTPAalongwithco-generationcaptivepower plant with an aggregate capacity of 90 MW at Lanjigarh, Orissa; aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135) MW CPP at Jharsuguda, Orissa and additional charge on Lanjigarh Expansion project, both present and future. SecuredbyafirstparipassuchargeontheidentifiedfixedassetsoftheCompany both present and future, pertaining to its aluminium business (Jharsuguda Plant, Lanjigarh Plant), 2,400 MW power plant assets at Jharsuguda, copper plant assets at Silvassa, iron ore business in the states of Karnataka and Goa, dividends receivable from Hindustan Zinc Limited (“HZL”), a subsidiary of the Company, and the debt service reserve account to be opened for the facility along with the amount lying to the credit thereof h. - 6,168 1,605 2,019 6,498 1,776 359 402 3,394 3,434 5,873 6,623 780 999 7,221 7,821 Secured by 2,662 1,602 (i) floating charge on the Company collection account and associated permitted investments and (ii) corporate guarantee from Cairn Energy Hydrocarbons Limited (CEHL) and floating charge on collection account and current assets of CEHL 511 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Facility Category Term loans from banks (Includes rupee term loans and foreign currency term loans) Security details AfirstparipassufirstchargebywayofhypothecationontheSpecifiedmovable fixedassetsoftheCompanypertainingtoitsManufacturingfacilitiescomprising: (i) aluminarefineryhavingoutputof1MTPAalongwithco-generationcaptive power plant with an aggregate capacity of 90 MW at Lanjigarh, Orissa (ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135) MW CPP at Jharsuguda, Orissa. Securedbyfirstparipassuchargeonallpresentandfuturemovablefixedassets including but not limited to plant and machinery, spares, tools and accessories of BALCO (excluding of coal block assets) by way of a deed of hypothecation Firstrankingparipassuchargebywayofhypothecation/mortgageonallfixed/ immovable assets of ESL Steel Limited but excluding any current assets or pledge over any shares. Afirstparipassuchargedbywayofhypothecationonthespecifiedmovablefixed assets (present and future) including movable plant and machinery, machinery spares,toolsandaccessories,furnitureandfixtures,vehicle,Capitalwork-in progress etc. of the Company pertaining to Aluminium division (Jharsuguda plant, Lanjigarh plant) and 2,400 MW power plant at JSG as more particularly described as below: (i) Aluminarefineryupto6MTPAalongwithcogenerationcaptivepowerplantwith aggregate capacity of 90 MW located in Lanjigarh, Odisha (ii) Alumina smelter output of 1.6 MTPA aluminium Smelter including 1,215 (9x135) MW power plant in Jharsuguda, Odisha (iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located as Jharsuguda, Odisha Afirstparipassuchargebywayofmortgage/hypothecationoverthespecified movablefixedassetsoftheCompany.Securityshallcompriseofassetsofthe aluminum and power division of the Company, comprising: (i) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda and (ii) 1MTPAaluminarefineryalongwith90MWCPPatLanjigarh,Odisha. Securedbyfirstparipassuchargebywayofmovablefixedassetsofthealuminium division of the Company comprising: (i) 6MTPAaluminiumrefineryalongwith90MWCo-generationcaptivepower plant in Lanjigarh, Orissa; (ii) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda, (iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha and (iv) Oil and gas division comprising RJ-ON-90/91 Oil and Gas Block (Rajasthan), Cambay Oil Fields, Ravva Oil and gas Fields under (PKMGH-1 block) and OALP blocks Firstparipassuchargeonthemovablefixedandcurrentassets(exceptforthe Concession assets) of VGCB at Visakhapatnam, Andhra Pradesh AfirstparipassufirstchargebywayofhypothecationontheSpecifiedmovable fixedassetsoftheCompanypertainingtoitsManufacturingfacilitiescomprising: (i) 1.6 MTPA Aluminium smelter along with 1,215 MW CPP (captive power plant) at Jharsuguda and (ii) 1MTPAAluminarefineryalongwithCPPof90MW(captivepowerplant)at Lanjigarh, Odisha Afirstparipassuchargebywayofmortgage/hypothecationoverthespecified immovableandmovablefixedassetsoftheCompany.Securityshallcompriseof assets of the aluminum and power division of the Company, comprising: (i) 1.6 MTPA Aluminium Smelter along with 1215 MW CPP at Jharsuguda and (ii) 1MTPAAluminarefineryalongwithCPPof90MWCPPatLanjigarh,Odisha (` in Crore) As at 31 March 2023 As at 31 March 2022 1,137 - 831 890 2,273 2,705 473 1,191 743 352 490 927 - - - 375 - - 512 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Facility Category Term loans from banks (Includes rupee term loans and foreign currency term loans) Security details First pari passu charge by way of hypothecation on all present and future movable fixedassetsoftheCompanyincludingbutnotlimitedtoplantandmachinery, spares, tools and accessories of 1.6 MTPA aluminium smelter along with 1,215 MW CPPatJharsuguda,Odishaand1MTPAaluminarefineryalongwith90MWCPPat Lanjigarh, Odisha Afirstparipassuchargebywayofhypothecationonallpresentandfuturemovable Fixed Assets including movable plant and machinery, machinery spares, tools andaccessories,furnitureandfixtures,vehicles,CapitalWork-in-Progressetc.of theCompanywithaminimumfixedassetcoverageratioof1.10timesasmore particularly described as below: (i) Aluminarefineryupto6MTPAalongwithco-generationcaptivepowerplant with an aggregate capacity of 90 MW located at Lanjigarh, Orissa; (ii) Aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135) MW CPP located at Jharsuguda, Orissa. (iii) 2,400 MW Power Plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda, Odisha; and (iv) Oil & Gas division comprising of RJ-ON-90/1 Oil & Gas Block (Rajasthan), Cambay Oil Fields and Ravva Oil & Gas Fields (under PKGM-1 block) Secured by tax free perpetual bonds** Other secured term loans Others Secured by Fixed asset (platinum) of AvanStrate Inc. Other Secured borrowings Total (` in Crore) As at 31 March 2023 As at 31 March 2022 683 880 250 - 1,505 - 493 - - 1,366 499 12 50,340 42,803 * Includes loans repayable on demand from banks, export packing credit from banks and amounts due on factoring. ** Repurchase liability as on 31 March 2023 carry an effective interest rate in the range of 7.99% p.a. to 8.15% p.a. (31 March 2022: Nil), secured by current investments amounting to ` 1,812 Crore and are repayable in 102 to 109 days (31 March 2022: Nil days) from the date of borrowings through repurchase obligation. d) Theloanfacilitiesaresubjecttocertainfinancialandnon-financialcovenants.Theprimarycovenantswhichmust be complied with include interest service coverage ratio, current ratio, debt service coverage ratio, total outside liabilities tototalnetworth,fixedassetscoverageratio,ratiooftotaltermliabilitiestonetworthanddebt/EBITDA.TheGrouphas complied with the covenants as per the terms of the respective loan agreements. Further, in case of borrowings having currentassetsassecurity,thequarterlystatementsofcurrentassetsfiledbytheGroupwithitslendersareinagreement with the books of accounts. e) Term of repayment of total borrowings outstanding as at 31 March 2023 are provided below - (` in Crore) Borrowings Foreign currency term loan Rupee term loan External commercial borrowings Non convertible debentures Commercial paper Weighted average of interest as at 31 March 2023 8.90% Total carrying value <1 year 1-3 years 3-5 years >5 years Remarks 2,662 27 541 2,136 - Repayable in 7 quarterly installments 8.50% 42,052 11,255 14,787 11,824 4,320 Repayable in 156 monthly, 661 quarterly, 56 half yearly installments and 21 bullet payments 7.42% 3,261 394 1,923 970 - Repayable in 35 half yearly payments 8.51% 10,049 2,984 1,000 7.69% 4,714 4,714 - - - 6,089 Repayable in 5 bullet and 2 annual installments - Repayable in 7 bullet payments 513 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Total carrying value <1 year 1-3 years 3-5 years >5 years Remarks (` in Crore) Weighted average of interest as at 31 March 2023 8.07% 2,864 2,864 - - 10 - 9 - - - - - 7 - - 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 - Repayable within 1 month - Repayable in 43 monthly installments - The redemption and dividend paid to the preference shares unclaimed if any, is payable on claim. 15 Repayable in 10 annual installments starting from FY 2023-24 - Repayable in 1 year as per lender's demand 8.70% NA NA 0.28%** 22 28 2 35 22 18 2 3 5.00% 493 493 66,182 22,776 18,270 14,937 10,424 Borrowings Working capital loan* Amounts due on factoring Deferred sales tax liability Redeemable preference shares Non-convertible bonds Others Total 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 ` 2,255 Crore ** Increasing interest rate to 0.50% till maturity f) Term of repayment of total borrowings outstanding as at 31 March 2022 are provided below - (` in Crore) 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 2022 Total carrying value <1 year 1-3 years 3-5 years >5 years Remarks 3.99% 2,660 1,232 1,189 72 172 Repayable in 57 quarterly installments, 11 annual installments and 1 monthly installment 8.22% 33,982 5,568 10,180 10,383 7,974 Repayable in 889 quarterly installments and 168 monthly installments 3.48% 1,233 113 680 454 - Repayable in 1 annual installment and 5 half yearly installments 8.79% 7,937 2,796 3,184 5.90% 5.93% 4,986 1,574 4,986 1,574 1.23% 139 139 - - - 29 25 NA NA 0.00%** 54 2 31 2 0 5.01% 511 511 - 8 - - - - - - - 5 - 2,000 Repayable in 4 bullet payments and 4 annual installments - Repayable in 12 bullet payment - 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 - Repayable within one month - Repayable in 55 monthly installments - The redemption and dividend paid to the preference shares unclaimed if any, is payable on claim. 18 Repayable in 10 annual installments starting from FY 2023-24 - Suppliers credit is repayable in 1 bullet payment and Loan repayable within one year on demand Total 53,109 16,950 15,266 10,914 10,164 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 ` 1,000 Crore ** Increasing interest rate from 0.00% to 0.50% till maturity 514 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS g) Movement in borrowings during the period is provided below - Particulars Opening balance at 01 April 2021 Net cash inflow/ (outflow) Other non-cash changes Foreign exchange currency translation differences As at 31 March 2022 Opening balance at 01 April 2022 Net cash inflow Other non-cash changes Foreign exchange currency translation differences As at 31 March 2023 *including Current maturities of Long term borrowing Short term borrowing Long term borrowing* 3,715 3,794 (80) 5 7,434 7,434 4,576 (232) 680 12,458 53,313 (7,842) 138 66 45,675 45,675 8,160 (254) 143 53,724 (` in Crore) Total 57,028 (4,048) 58 71 53,109 53,109 12,736 (486) 823 66,182 Other non-cash changes include amortisation of borrowing costs and foreign exchange difference on borrowings. In December 2021, the Company executed a ` 8,000 Crore facility agreement with Union Bank of India Limited to take h) over a long term syndicated facility of ` 10,000 Crore. This loan is secured by the way of pledge over the shares held by the Company in HZL equal to minimum 1x outstanding loan value (calculated quarterly at Value Weighted Average Price), currently representing 6.77% (31 March 2022: 5.77%) of the paid-up shares of HZL. Further, the Company has also signed a Non-Disposal Undertaking (NDU) 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 2023, the outstanding loan amount under the facility is ` 7,240 Crore (31 March 2022: ` 7,840 Crore). 20 Financial liabilities -Trade payables Particulars Undisputed dues Unbilled dues Not due Less than 1 year 1-2 years 2-3 years More than 3 years Sub-total Disputed dues Less than 1 year 1-2 Years 2-3 years More than 3 years Sub-total Total (` in Crore) As at 31 March 2023 As at 31 March 2022 2,319 3,380 4,690 144 108 94 10,735 106 28 21 153 308 11,043 2,042 3,441 4,373 107 91 96 10,150 41 36 22 131 230 10,380 a) Trade payables are majorly non-interest bearing and are normally settled upto 180 days terms. b) For amount due and terms and conditions of related party payables, refer note 42. 21 Operational Buyers' /Suppliers' Credit is availed in foreign currency from offshore branches of Indian banks or foreign banks at an interest rate ranging from 0.69% - 7.80% (31 March 2022: 0.28% - 3.16%) per annum and in rupee from domestic banks at interest rate ranging from 4.34% - 8.80% (31 March 2022: 4.00% - 8.00%) 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 securedbyfirstparipassuchargeoverthepresentandfuturecurrentassetsoftheGroup. 515 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 22 Financial liabilities - Others Particulars Liabilities for capital expenditure Security deposits from vendors and others Interest accrued but not due Put option liability with non-controlling interest a Unpaid/unclaimed dividend Profitpetroleumpayable Dues to related parties (Refer note 42) Dividend payable Other liabilities b Total As at 31 March 2023 As at 31 March 2022 Non-current 1,241 Current 10,076 Total Non-current - - 41 - - - - 324 1,606 307 691 219 145 2,869 279 8,223 2,052 11,317 307 691 260 145 2,869 279 8,223 2,376 24,861 26,467 962 - - 245 - - - - 120 1,327 (` in Crore) Total 11,960 237 381 245 122 2,180 166 - 3,348 18,639 Current 10,998 237 381 - 122 2,180 166 - 3,228 17,312 a) b) The non-controlling shareholders of ASI have an option to sell their shareholding to the Group. The option is exercisable at any time withintheperiodofthreeyearsfollowingthefifthanniversaryofthedateofshareholders’agreement(22December2017)ataprice 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. Includes revenue received in excess of entitlement interest of ` 487 Crore (31 March 2022: ` 1,507 Crore) of which ` 279 Crore is payable to ONGC, and reimbursement of expenses, interest accrued on other than borrowings, liabilities related to claim, liability for stock options etc. 23 Movement in lease liabilities is as follows: Particulars At 01 April 2021 Additions during the year Interest on lease liabilities Payments made FCTR and other adjustments As at 31 March 2022 Additions during the year Interest on lease liabilities Payments made FCTR and other adjustments As at 31 March 2023 24 Financial instruments A. Financial assets and liabilities: (` in Crore) 641 115 14 (232) (64) 474 143 14 (182) (3) 446 Theaccountingclassificationofeachcategoryoffinancialinstruments,theircarryingamountsandtheirfairvaluesareset out below: As at 31 March 2023 Financial Assets Investments* Trade receivables Loans Otherfinancialassets 516 Fair value through profit or loss Fair value through other comprehensive income Derivatives designated as hedging instruments (` in Crore) Amortised cost Total carrying value Total fair value 8,676 385 - - 4,473 - - - - - - - - 6,161 3,770 11,652 13,149 6,546 3,770 11,652 13,149 6,546 3,770 11,652 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Financial Assets Derivatives Cash and cash equivalents Other bank balances Total Fair value through profit or loss Fair value through other comprehensive income Derivatives designated as hedging instruments (` in Crore) Amortised cost Total carrying value Total fair value 87 - - - - - 127 - - - 6,926 2,328 214 6,926 2,328 214 6,926 2,328 9,148 4,473 127 30,837 44,585 44,585 Financial Liabilities Borrowings Trade payables Operational buyers' credit / suppliers' credit Derivatives Otherfinancialliabilities** Total As at 31 March 2022 Financial Assets Investments* Trade receivables Loans Otherfinancialassets Derivatives Cash and cash equivalents Other bank balances Total Fair value through profit or loss Derivatives designated as hedging instruments Amortised cost Others*** - 988 - 71 - 1,059 - - - 142 - 142 66,182 10,055 13,701 - 26,653 1,16,591 - - - - 260 260 Fair value through profit or loss Fair value through other comprehensive income Derivatives designated as hedging instruments Amortised cost 17,170 521 - - 10 - - 118 - - - - - - - - - - 248 - - - 7,426 5,470 11,816 - 8,671 6,684 (` in Crore) Total fair value 66,109 11,043 13,701 213 26,913 Total carrying value 66,182 11,043 13,701 213 26,913 1,18,052 1,17,979 (` in Crore) Total fair value 17,288 7,947 5,864 11,816 258 8,671 6,684 Total carrying value 17,288 7,947 5,470 11,816 258 8,671 6,684 17,701 118 248 40,067 58,134 58,528 Financial Liabilities Borrowings Trade payables Operational buyers' credit / suppliers' credit Derivatives Otherfinancialliabilities** Total Fair value through profit or loss Derivatives designated as hedging instruments Amortised cost Others*** - 1,033 - 135 - 1,168 - - - 402 - 402 53,109 9,347 11,151 - 18,650 92,257 - - - - 245 245 (` in Crore) Total fair value 53,202 10,380 11,151 537 18,895 94,165 Total carrying value 53,109 10,380 11,151 537 18,895 94,072 * Investments exclude equity investment in associates and joint ventures which are accounted as per the equity method of accounting. **includes lease liability of ` 446 Crore (31 March 2022: ` 474 Crore) *** Represents net put option liability with non-controlling interests accounted for at fair value. 517 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED B. Fair value hierarchy TheGroupusesthefollowinghierarchyfordetermininganddisclosingthefairvalueoffinancialinstrumentsby valuation technique: (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) Thebelowtablesummarisesthecategoriesoffinancialassetsandliabilitiesasat31March2023and31March2022 measured at fair value: As at 31 March 2023 Financial Assets At fair value through profit or loss Investments Derivativefinancialassets Trade receivables At fair value through other comprehensive income Investments Derivatives designated as hedging instruments Derivativefinancialassets Total Financial Liabilities At fair value through profit or loss Derivativefinancialliabilities Trade payables Derivatives designated as hedging instruments Derivativefinancialliabilities Otherfinancialliabilities-Netputoptionliabilitywithnon-controlling interests accounted for at fair value. Total As at 31 March 2022 Financial Assets At fair value through profit or loss Investments Derivativefinancialassets Trade receivables At fair value through other comprehensive income Investments Derivatives designated as hedging instruments Derivativefinancialassets Total 518 Level 1 Level 2 Level 3 (` in Crore) 4,563 - - 70 - 4,633 3,834 87 385 4,392 127 8,825 279 - - 11 - 290 Level 1 Level 2 Level 3 (` in Crore) - - - - - 71 988 142 - 1,201 - - - 260 260 Level 1 Level 2 Level 3 (` in Crore) 7,208 - - 107 - 7,315 9,933 10 521 - 248 10,712 29 - - 11 - 40 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Financial Liabilities At fair value through profit or loss Derivativefinancialliabilities Trade payable Derivatives designated as hedging instruments Derivativefinancialliabilities Otherfinancialliabilities-Netputoptionliabilitywithnon-controlling interests accounted for at fair value. Total Level 1 Level 2 Level 3 (` in Crore) - - - - - 135 1,033 402 - 1,570 - - - 245 245 The below table summarises the fair value of loans and borrowings which are carried at amortised cost as at 31 March 2023 and 31 March 2022 As at 31 March 2023 Financial Assets Loans* Total Financial Liabilities Borrowings Total As at 31 March 2022 Financial Assets Loans* Total Financial Liabilities Borrowings Total *Refer note 42 (J) Level 1 - - Level 1 - - Level 1 - - Level 1 - - Level 2 3,770 3,770 Level 2 66,109 66,109 Level 2 5,864 5,864 Level 2 53,202 53,202 (` in Crore) Level 3 - - (` in Crore) Level 3 - - (` in Crore) Level 3 - - (` in Crore) Level 3 - - Thefairvalueofthefinancialassetsandliabilitiesareattheamountthatwouldbereceivedtosellanassetandpaid 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: • Investmentstradedinactivemarketsaredeterminedbyreferencetoquotesfromthefinancialinstitutions;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 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. • Tradereceivables,cashandcashequivalents,otherbankbalances,otherfinancialassets,currentborrowings,trade payables,operationalbuyers'creditandothercurrentfinancialliabilities:Fairvaluesapproximatetheircarrying amounts largely due to the short-term maturities of these instruments. 519 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED • Non-currentfixed-rateandvariable-rateborrowings:FairvaluehasbeendeterminedbytheGroupbasedon parameterssuchasinterestrates,specificcountryriskfactors,andtheriskcharacteristicsofthefinancedproject. • Derivativefinancialassets/liabilities:TheGroupexecutesderivativefinancialinstrumentswithvarious 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.). • Othernon-currentfinancialassetsandliabilities:Fairvalueiscalculatedusingadiscountedcashflowmodelwith market assumptions, unless the carrying value is considered to approximate to fair value. Forallotherfinancialinstruments,thecarryingamountiseitherthefairvalue,orapproximatesthefairvalue. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designatedinhedgerelationshipandthevalueofotherfinancialinstrumentsrecognisedatfairvalue. The estimated fair value amounts as at 31 March 2023 and 31 March 2022 have been measured as at respective date. Assuch,thefairvaluesofthesefinancialinstrumentssubsequenttoreportingdatemaybedifferentthantheamounts reported at each period-end. TherewerenosignificanttransfersbetweenLevel1,Level2andLevel3duringtheyear. C. Risk management framework TheGroup’sbusinessesaresubjecttoseveralrisksanduncertaintiesincludingfinancialrisks. TheGroup’sdocumentedriskmanagementpoliciesactasaneffectivetoolinmitigatingthevariousfinancialrisksto 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.Risksareidentifiedatboththecorporateandindividualsubsidiarylevelwithactiveinvolvementofsenior management. Each operating subsidiary in the Group has in place risk management processes which are in line with theGroup’spolicy.Eachsignificantriskhasadesignated‘owner’withintheGroupatanappropriateseniorlevel.The potentialfinancialimpactoftheriskanditslikelihoodofanegativeoutcomeareregularlyupdated. The risk management process is coordinated by the Management Assurance function and is regularly reviewed by the Group’s Audit and Risk Management Committee. The Audit and Risk Management 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 ExecutiveCommittee.Theoverallinternalcontrolenvironmentandriskmanagementprogrammeincludingfinancial risk management is reviewed by the Audit Committee on behalf of the Board. The risk management framework aims to: -improvefinancialriskawarenessandrisktransparency - identify, control and monitor key risks - identify risk accumulations - provide management with reliable information on the Group’s risk situation -improvefinancialreturns 520 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 subsidiarycompaniesaremanagedbytheirrespectivefinanceteamswithintheframeworkoftheoverallGroup 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 commodityprices.TheGroupdoesnotacquireorissuederivativefinancialinstrumentsfortradingorspeculative 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 profitabilityofthebusinesses.Asageneralpolicy,theGroupaimstoselltheproductsatprevailingmarketprices. 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 theBoardandtoastrictlydefinedinternalcontrolandmonitoringmechanism.Decisionsrelatingtohedgingof 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. The 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 • 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 executes hedging arrangements for its aluminium sales to realise average month of sale LME prices. Copper TheGroup’scustomrefiningcopperoperationsatSilvassaisbenefittedbyanaturalhedgeexcepttotheextentofa possiblemismatchinquotationalperiodsbetweenthepurchaseofanodes/blistersandthesaleoffinishedcopper. TheGroup’spolicyoncustomsmeltingistogeneratemarginsfromRefiningChargesor"RCs”,improvingoperational efficiencies,minimisingconversioncost,generatingapremiumoverLMEonsaleoffinishedcopper,saleofby-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 521 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED triestomaketheLMEpriceapass-throughcostbetweenpurchasesofanodes/blistersandsalesoffinishedproducts, both of which are linked to the LME price. RCsareamajorsourceofincomefortheIndiancopperrefiningoperations.FluctuationsinRCsareinfluencedby 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 executes hedging arrangements for its Zinc, Lead and Silver sales to realise average month of sale LME prices. In exceptional circumstances, we may enter into strategic hedging with prior approval of the Committee of Directors. 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. The Group also hedges variability of crude price through forward contracts on selective basis. Natural gas markets are evolving differently in important geographical markets. There is no single global market for naturalgas.Thiscouldbeowingtodifficultiesinlarge-scaletransportationoverlongdistancesascomparedtocrude 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 On31March2023,thevalueofnetfinancialliabilitieslinkedtocommodities(excludingderivatives)accountedforon provisional prices was ` 603 Crore (31 March 2022: ` 512 Crore). These instruments are subject to price movements at thetimeoffinalsettlementandthefinalpriceoftheseinstrumentswillbedeterminedinthefinancialyearbeginning01 April 2023. Setoutbelowistheimpactof10%increaseinLMEpricesonpre-taxprofitfortheyearandpre-taxequityasaresultof changesinvalueoftheGroup’scommodityfinancialinstruments: For the year ended 31 March 2023 Total Exposure Effect on pre-tax profit of a 10% increase in the LME Effect on equity of a 10% increase in the LME (` in Crore) Copper (875) (87) - For the year ended 31 March 2022 Total Exposure Effect on pre-tax profit of a 10% increase in the LME Effect on equity of a 10% increase in the LME Copper (830) (83) - (` in Crore) 522 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The above sensitivities are based on volumes, costs, exchange rates and other variables and provide the estimated impactofachangeinLMEpricesonprofitandequityassumingthatallothervariablesremainconstant.A10% decreaseinLMEpriceswouldhaveanequalandoppositeeffectontheGroup’sfinancialstatements. Theimpactonpre-taxprofit/(loss)mentionedaboveincludestheimpactofa10%increaseinclosingcopperLMEfor provisionally priced copper concentrate purchased at Copper division custom smelting operations in India of ` 134 Crore loss (31 March 2022: ` 130 Crore loss), which is pass through in nature and as such will not have any impact on theprofitability. (a) Financial risk TheGroup’sBoardapprovedfinancialriskpoliciesincludemonitoring,measuringandmitigatingtheliquidity,currency, interest rate and counterparty risk. The Group does not engage in speculative treasury activity but seeks to manage risk andoptimizeinterestandcommoditypricingthroughprovenfinancialinstruments. Liquidity risk The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainlyingrowthprojects.TheCompanygeneratessufficientcashflowsfromthecurrentoperationswhichtogether 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. CRISIL ratings on the long-term bank facilities and debt instruments of the Company was maintained at 'CRISIL AA' during FY 2023 after upgrade to 'CRISIL AA' from 'CRISIL AA-' in February 2022. However, outlook has been revised to negative in March 2023. Theshort-termratingonbankfacilitiesandcommercialpaperhasbeenreaffirmedat'CRISILA1+' India Ratings, after upgrading the Company’s long-term issuer ratings to “IND AA” from “IND AA-“ with stable outlook inMarch2022,reaffirmeditsratingsat“INDAA”withstableoutlookinMay2022.Outlookwasrevisedto“negative”in March 2023. Theratingsaffirmationfactorsinrobustoperatingprofitabilitysignificantlyhigherthanpre-pandemiclevels.Further, consolidated EBITDA is expected to increase driven by healthy commodity prices that are expected to remain stable around current levels, robust operating rates across key businesses, increased volume growth in Aluminium business supportedbycommissioningofnewcapacityduringfiscal2024alongwithexpectedreductionincostofproductionfor Aluminiumbusinessonthebackofaluminarefineryexpansionandcommissioningofcaptivecoalmines.Therevision inoutlookreflectspossibilityofhigher-than-expectedfinancialleverageandlowerfinancialflexibility. Anticipated future cash flows, together with undrawn fund based committed facilities of ` 5,763 Crore, and cash, bank and current investments of `20,922Croreasat31March2023,areexpectedtobesufficienttomeettheliquidity requirement of the Group in the near future. The Group remains committed to maintaining a healthy liquidity, a low gearing ratio, deleveraging and strengthening itsbalancesheet.ThematurityprofileoftheGroup’sfinancialliabilitiesbasedontheremainingperiodfromthe dateofbalancesheettothecontractualmaturitydateisgiveninthetablebelow.Thefiguresreflectthecontractual undiscounted cash obligation of the Group. 523 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED As at 31 March 2023 Payments due by year Borrowings* Derivativefinancialliabilities Lease liabilities Trade Payables, Operational buyers' credit / suppliers' credit As at 31 March 2022 Payments due by year Borrowings* Derivativefinancialliabilities Lease liabilities Trade Payables, Operational buyers' credit / suppliers' credit <1 year 26,047 193 302 49,153 1-3 years 3-5 years >5 years 24,013 18,282 14,161 20 109 300 - 5 1,241 - 30 - (` in Crore) Total 82,503 213 446 50,694 75,695 24,442 19,528 14,191 1,33,856 <1 year 19,028 531 324 38,544 1-3 years 3-5 years 18,180 6 113 1,098 13,103 - 9 - >5 years 11,654 - 28 - (` in Crore) Total 61,965 537 474 39,642 58,427 19,397 13,112 11,682 1,02,618 *Includes non-current borrowings, current borrowings, committed interest payments on borrowings and interest accrued on borrowings. **Includesbothnon-currentandcurrentfinancialliabilitiesandcommittedinterestpayment,asapplicable.Excludesinterestaccrued on borrowings. The Group had access to following funding facilities: As at 31 March 2023 Funding facility Fund/non-fund based As at 31 March 2022 Funding facility Fund/non-fund based (b) Foreign exchange risk Level 1 95,678 Level 2 80,760 Level 1 78,181 Level 2 64,227 (` in Crore) Level 3 14,918 (` in Crore) Level 3 13,954 Fluctuationsinforeigncurrencyexchangeratesmayhaveanimpactontheconsolidatedstatementofprofitand 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 524 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS whichhaveaUSdollarfunctionalcurrency.Naturalhedgesavailableinthebusinessareidentifiedateachentitylevel 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 statementofprofitandloss.TheexposureismitigatedbysomeofthederivativecontractsenteredintobytheGroupas disclosedunderthesectionon“Derivativefinancialinstruments”. ThecarryingamountoftheGroup'sfinancialassetsandliabilitiesindifferentcurrenciesareasfollows: Particulars INR USD Others Total (` in Crore) As at 31 March 2023 As at 31 March 2022 Financial Asset 33,082 10,515 988 44,585 Financial liabilities 84,810 30,012 3,230 1,18,052 Financial Asset Financial liabilities 38,952 17,885 1,297 58,134 64,683 26,183 3,206 94,072 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 profitandpre-taxequityarisingasaresultoftherevaluationoftheGroup’sforeigncurrencymonetaryfinancialassets/ liabilities: For the year ended 31 March 2023 USD INR For the year ended 31 March 2022 USD INR Effect of 10% strengthening of functional currency on pre-tax profit Effect of 10% strengthening of functional currency on equity (` in Crore) 1,408 (631) - - (` in Crore) Effect of 10% strengthening of functional currency on pre-tax profit Effect of 10% strengthening of functional currency on equity 884 (452) - - A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect on the Group’sfinancialstatements. In respect of loans granted to group companies, there have been no non-compliances of the relevant provisions of the Foreign Exchange Management Act, 1992 and the Prevention of Money Laundering Act, 2002. 525 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED (c) Interest rate risk At 31 March 2023, the Group’s net debt of ` 45,260 Crore (31 March 2022: ` 20,979 Crore) comprises debt of ` 66,182 Crore (31 March 2022: ` 53,109 Crore) offset by cash, bank and current investments of ` 20,922 Crore (31 March 2022: ` 32,130 Crore). TheGroupisexposedtointerestrateriskonshort-termandlong-termfloatingrateinstrumentsandontherefinancing offixedratedebt.TheGroup’spolicyistomaintainabalanceoffixedandfloatinginterestrateborrowingsandthe proportionoffixedandfloatingratedebtisdeterminedbycurrentmarketinterestrates.TheborrowingsoftheGroup areprincipallydenominatedinIndianRupeesandUSdollarswithmixoffixedandfloatingratesofinterest.TheUSD 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 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. Floatingratefinancialassetsarelargelymutualfundinvestmentswhichhavedebtsecuritiesasunderlyingassets.The returnsfromthesefinancialassetsarelinkedtomarketinterestratemovements;howeverthecounterpartyinvestsin the agreed securities with known maturity tenure and return and hence has manageable risk. TheexposureoftheGroup’sfinancialassetsasat31March2023tointerestrateriskisasfollows: Funding facility Financial Assets Total 44,585 Floating rate financial assets 4,673 Fixed rate financial assets 16,175 Non-interest bearing financial assets 23,737 (` in Crore) TheexposureoftheGroup’sfinancialliabilitiesasat31March2023tointerestrateriskisasfollows: Funding facility Fund/non-fund based Total 1,18,052 Floating rate financial liabilities 48,140 Fixed rate financial liabilities 31,894 Non-interest bearing financial liabilities 38,018 (` in Crore) TheexposureoftheGroup’sfinancialassetsasat31March2022tointerestrateriskisasfollows: (` in Crore) Funding facility Total Floating rate financial assets Fixed rate financial assets Non-interest bearing financial assets Fund/non-fund based 58,134 9,113 24,576 24,445 TheexposureoftheGroup’sfinancialliabilitiesasat31March2022tointerestrateriskisasfollows: Funding facility Fund/non-fund based Total 94,072 Floating rate financial liabilities Fixed rate financial liabilities Non-interest bearing financial liabilities 35,579 29,899 28,594 (` in Crore) Considering the net debt position as at 31 March 2023 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 inanetgain.Thesensitivityanalysisbelowhasbeendeterminedbasedontheexposuretointerestratesforfinancial instruments at the balance sheet date. Thetablebelowillustratestheimpactofa0.5%to2.0%movementininterestratesonfloatingratefinancial assets/liabilities(net)onprofit/(loss)andequityassumingthatthechangesoccuratthereportingdateandhas 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. 526 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Increase in interest rates Effect on pre-tax profit/(loss) during the year ended 31 March 2023 Effect on pre-tax profit/(loss) during the year ended 31 March 2022 (` in Crore) 0.50% 1.00% 2.00% (217) (435) (869) (132) (265) (530) AnequivalentreductionininterestrateswouldhaveanequalandoppositeeffectontheGroup’sfinancialstatements. (d) Counterparty and concentration of credit risk Creditriskreferstotheriskthatcounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstothe Group.TheGrouphasadoptedapolicyofonlydealingwithcreditworthycounterpartiesandobtainingsufficient,where appropriate,asameansofmitigatingtheriskoffinanciallossfromdefaults. TheGroupisexposedtocreditriskfromtradereceivables,contractassets,investments,loans,otherfinancialassets, andderivativefinancialinstruments. 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 withnosignificantconcentrationofcreditrisk.Thehistoryoftradereceivablesshowsanegligibleprovisionforbadand doubtful debts. Therefore, the Group does not expect any material risk on account of non-performance by any of the Group’s counterparties. TheGrouphasclearlydefinedpoliciestomitigatecounterpartyrisks.Forshort-terminvestments,counterpartylimits areinplacetolimittheamountofcreditexposuretoanyonecounterparty.This,therefore,resultsindiversificationof creditriskforourmutualfundandbondinvestments.Forderivativeandfinancialinstruments,theGroupattemptsto limitthecreditriskbyonlydealingwithreputablebanksandfinancialinstitutions. Thecarryingvalueofthefinancialassetsrepresentsthemaximumcreditexposure.TheGroup’smaximumexposureto credit risk is ` 44,585 Crore (31 March 2022: ` 58,134 Crore). ThemaximumcreditexposureonfinancialguaranteesgivenbytheGroupforvariousfinancialfacilitiesisdescribedin Note 40 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,loansandotherfinancialassets(bothcurrentandnon-current),therewerenoindicationsasattheyear end, that defaults in payment obligations will occur except as described in Notes 8 and 10 on allowance for impairment oftradereceivablesandotherfinancialassets. Oftheyearendtradereceivables,loansandotherfinancialassets(excludingBankdepositsandsiterestorationfund) 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 2023 and 31 March 2022: 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 (` in Crore) As at 31 March 2023 As at 31 March 2022 13,793 15,828 1,116 235 327 4,581 20,052 2,108 369 390 5,071 23,766 527 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 qualityandprevailingmarketconditions.Receivablesthatareclassifiedas‘pastdue’intheabovetablesarethosethat 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. Movement in allowances for Financial Assets (Trade receivables and Financial assets - others) Thechangeintheallowanceforfinancialassets(currentandnon-current)isasfollows: Funding facility As at 01 April 2021 Allowance made during the year Reversals/ write-off during the year Exploration cost written off Exchange differences As at 31 March 2022 Allowance made during the year Reversals/ write-off during the year Exploration cost written off Exchange differences As at 31 March 2023 D Derivative financial instruments Trade receivables Financial assets - Others Financial assets - Loans (` in Crore) 883 197 0 0 0 1,080 356 (40) 0 0 1,396 1,020 13 1 0 14 1,048 0 (225) 0 49 872 78 0 - - - 78 0 - 0 9 87 The Group uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchangerates,interestratesandcommodityprices.TheGroupdoesnotacquireorissuederivativefinancial 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- currentassetsandliabilities.Derivativesthataredesignatedashedgesareclassifiedascurrentornon-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 byonlyenteringintocontractswithreputablebanksandfinancialinstitutions.Theuseofderivativeinstruments 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 recognized inequitythroughOCIuntilthehedgedtransactionoccurs,atwhichtime,therespectivegainorlossesarereclassifiedto profitorloss.Thesehedgeshavebeeneffectivefortheyearended31March2023and31March2022. The Group uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. The Group hedged part of its foreign currency exposure on capital commitments during the year ended 31 March 2023 and 31 March 2022. Fair value changes on such forward contracts are recognized in other comprehensive income. 528 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 2024 and consequently may impactprofitorlossforthatyeardependinguponthechangeinthecommoditypricesandforeignexchangerates movements. For cash flow hedges regarded as basis adjustments to initial carrying value of the property, plant and equipment,thedepreciationonthebasisadjustmentsmadeisexpectedtoaffectprofitorlossovertheexpecteduseful 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 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 consolidatedstatementofprofitandloss. The Group uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions.Fairvaluechangesonsuchforwardcontractsarerecognizedintheconsolidatedstatementofprofitandloss. 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 derivativeinstrumentsarerecognizedintheconsolidatedstatementofprofitandloss. ThefairvalueoftheGroup’sderivativepositionsrecordedunderderivativefinancialassetsandderivativefinancial liabilities are as follows: Derivative Financial Instruments Current Cash flow hedge* - Commodity contracts - Interest rate swap Fair Value hedge - Commodity contracts - Forward foreign currency contracts Non - qualifying hedges/economic hedge - Commodity contracts - Forward foreign currency contracts Sub-total (A) Non-current Fair Value hedge - Forward foreign currency contracts Sub-total (B) Total (A+B) As at 31 March 2023 As at 31 March 2022 Assets Liabilities Assets Liabilities (` in Crore) 38 - 85 4 52 35 33 - 71 18 - 71 214 193 - - 214 20 20 213 232 1 11 4 2 8 258 - - 258 207 - 65 124 10 125 531 6 6 537 *RefertheConsolidatedStatementofProfitandLossandtheConsolidatedStatementofChangesinEquityforthechangeinthefair value of cash flow hedges. 529 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 25 Provisions Particulars Provisionforemployeebenefitsa (Refer note 33) -Retirementbenefit - Others Provision for restoration, rehabilitation and environmental costs b Other provisions b Total As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current Total (` in Crore) 218 14 3,194 - 3,426 63 174 30 114 381 281 188 3,224 114 3,807 158 10 3,218 - 3,386 100 177 28 112 417 258 187 3,246 112 3,803 a) Provisionforemployeebenefitsincludesgratuity,compensatedabsences,deferredcashbonusetc. b) Particulars As at 01 April 2021 Additions Amounts utilised Unwinding of discount (Refer note 34) Revision in estimates Exchange differences As at 31 March 2022 Additions Amounts utilised Unused amounts reversed Unwinding of discount (Refer note 34) Revision in estimates Exchange differences As at 31 March 2023 Restoration, rehabilitation and environmental costs (Refer c) (` in Crore) Others (Refer d) 3,002 35 (4) 78 53 82 3,246 45 (20) - 96 (296) 153 3,224 56 56 - - - - 112 5 - (2) - (1) - 114 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 legalobligationexistsrelatingtotheoilandgasfields,wherecostsareexpectedtobeincurredinrestoringthesiteof productionfacilitiesattheendoftheproducinglifeofanoilfield.TheGrouprecognisesthefullcostofsiterestoration as a liability when the obligation to rectify environmental damage arises. These amounts are calculated by considering discount rates within the range of 1% to 10%, and become payable on closure of mines and are expected to be incurred over a period of one to forty-six years. The lower range of discount rate is at ASI, Oil and Gas business and Zinc International operations in Ireland and higher range is at Zinc International operations in African Countries. An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is causedbythedevelopmentorongoingproductionfromaproducingfield. 530 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS d) Other provisions Other provisions include provision for disputed cases and claims. 26 Other liabilities Particulars Amount payable to owned post- employmentbenefittrust Other statutory liabilities a Deferred government grants b Advance from customer c Advance from related party Other liabilities Total As at 31 March 2023 As at 31 March 2022 Non-current Current Total Non-current Current - - 4,309 - - - 32 3,805 282 8,931 3 185 32 3,805 4,591 8,931 3 185 - - 4,270 404 - - 4,309 13,238 17,547 4,674 33 3,157 250 4,127 2 208 7,777 (` in Crore) Total 33 3,157 4,520 4,531 2 208 12,451 a) b) c) Statutory liabilities mainly includes payables for Provident fund, ESIC, withholding taxes, goods and services tax, VAT, service tax, etc. RepresentsgovernmentassistanceintheformofthedutybenefitavailedunderExportPromotionCapitalGoods(EPCG)Schemeand 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 2021 was ` 6,233 Crore. During the current year, the Group has recognised revenue of ` 4,380 Crore (31 March 2022: ` 6,221 Crore) out of opening balances. All other changes are either due to receipt of fresh advances or exchange differences. 27 Revenue from operations Particulars Sale of products Sale of services Revenue from contingent rents Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 1,43,535 1,29,510 326 1,543 301 1,381 1,45,404 1,31,192 a) Revenue from sale of products and from sale of services for the year ended 31 March 2023 includes revenue from contracts with customers of ` 1,45,984 Crore (31 March 2022: ` 1,31,101 Crore) and a net loss on mark-to-market of ` 2,123 Crore (31 March 2022: ` 1,290 Crore) on account of gains/ losses relating to sales that were provisionally priced asat31March2022withthefinalpricesettledinthecurrentyear,gains/lossesrelatingtosalesfullypricedduringthe year, and marked to market gains/ losses relating to sales that were provisionally priced as at 31 March 2023. b) 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 significantfinancingcomponentaspaymenttermsarewithinthenormalcreditperiod. 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 performance obligations. Accordingly, the Group has availed the practical expedient available under paragraph 121 of Ind AS115anddispensedwiththeadditionaldisclosureswithrespecttoperformanceobligationsthatremainedunsatisfied (orpartiallyunsatisfied)atthebalancesheetdate.Further,sincethetermsofthecontractsdirectlyidentifythetransaction price for each of the completed performance obligations, in all material respects, there are no elements of transaction pricewhichhavenotbeenincludedintherevenuerecognisedinthefinancialstatements. Further, there is no material difference between the contract price and the revenue from contract with customers. 531 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 28 Other operating income Particulars Export incentives Scrap sales Miscellaneous income Total 29 Other Income Particulars Net gain on investment measured at FVTPL Interest income from investments measured at FVTPL Interest income from investments measured at FVOCI Interestincomefromfinancialassetsatamortisedcost - Bank deposits - Loans (Refer note 42) - Others Interest on income tax refund Dividend income from -financialassetsatFVTPL -financialassetsatFVOCI Profitonsaleofassets Deferred government grant income Miscellaneous income Total 30 Changes in inventories of finished goods and work-in-progress* Particulars Opening Stock: Finished Goods Work in Progress Total Add: Foreign exchange translation (Less): Capitalisation and other adjustments (Less): Raw material sold during the year Less: Closing Stock Finished Goods Work in Progress Total Changes in inventory * Inventories include goods-in-transit 532 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 483 781 640 1,904 488 573 479 1,540 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 74 504 281 379 560 372 166 21 - - 273 221 2,851 209 392 - 537 708 246 2 - 2 128 245 131 2,600 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 829 5,040 5,869 15 (152) - 1,028 5,081 6,109 (377) 855 3,013 3,868 14 (51) (11) 829 5,040 5,869 (2,049) NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 31 Employee benefits expense a Particulars Salaries and wages Share based payments Contributions to provident and other funds Staff welfare expenses Less: Cost allocated/directly booked in joint ventures Total (a) net of capitalisation of ` 158 Crore (31 March 2022: ` 115 Crore). (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 2,988 77 268 334 (569) 3,098 2,776 79 226 286 (556) 2,811 32 Share based payments TheCompanyoffersequitybasedandcashbasedoptionplanstoitsemployees,officersanddirectorsthroughthe Company's stock option plan introduced in 2016 and Cairn India's stock option plan now administered by the Company pursuant to its 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)definedinthescheme.TheextenttowhichanoptionvestswilldependontheCompany'sTSRrankagainsta 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 2023 and year ended 31 March 2022 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, Free Cash Flows, ESG & Carbon footprint 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 2023 is presented below: Financial Year of Grant Exercise Period 2018-19 01 November 2021 - 30 April 2022 Options outstanding 01 April 2022 3,23,015 2019-20 29 November 2022 - 28 May 2023 1,14,81,718 2019-20 Cash settled 6,80,401 2020-21 06 November 2023 - 05 May 2024 1,08,07,521 2020-21 Cash settled 7,24,923 2021-22 01 November 2024 - 30 April 2025 1,13,04,599 2021-22 Cash settled 8,41,767 Options granted during the year Options forfeited/ lapsed during the year Options exercised during the year Options outstanding 31 March 2023 - 2,81,565 41,450 Options exercisable 31 March 2023 41,450* - - - - - - - 61,53,328 41,76,303 11,52,087 11,52,087 3,58,428 3,21,973 - 24,81,770 1,07,282 17,83,209 1,34,067 9,10,824 18,601 - - - - - - 83,25,751 6,17,641 95,21,390 7,07,700 1,35,26,444 10,16,571 - - - - - - - 2022-23 01 November 2025 - 30 April 2026 2022-23 Cash settled - 1,44,37,268 - 10,35,172 *Options for some employees could not be exercised within exercise period due to technical issues. 3,61,63,944 1,54,72,440 1,19,47,509 47,79,841 3,49,09,034 11,93,537 533 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED The details of share options for the year ended 31 March 2022 is presented below: Financial Year of Grant Exercise Period Options outstanding 01 April 2021 Options granted during the year Options forfeited/ lapsed during the year Options exercised during the year Options outstanding 31 March 2022 Options exercisable 31 March 2022 2017-18 01 September 2020 - 28 February 2021 3,76,940 2018-19 01 November 2021 - 30 April 2022 2018-19 Cash settled 99,12,240 7,28,856 2019-20 29 November 2022 - 28 May 2023 1,35,72,278 2019-20 Cash settled 8,77,451 2020-21 06 November 2023 - 05 May 2024 1,27,11,112 2020-21 Cash settled 10,20,889 - - - - - - - 2021-22 01 November 2024 - 30 April 2025 2021-22 Cash settled - 1,20,83,636 - 8,64,537 23,457 3,53,483 - - 69,06,444 26,82,781 3,23,015 3,23,015 4,89,731 2,39,125 - 20,90,560 1,97,050 19,03,591 2,95,966 7,79,037 22,770 - - - - - - 1,14,81,718 6,80,401 1,08,07,521 7,24,923 1,13,04,599 8,41,767 - - - - - - - 3,91,99,766 1,29,48,173 1,27,08,606 32,75,389 3,61,63,944 3,23,015 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. 534 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS The assumptions used in the calculations of the charge in respect of the ESOS options granted during the years ended 31 March 2023 and 31 March 2022 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) (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 ESOS 2022 ESOS 2021 Cash settled - 10,35,172 equity settled - 1,44,37,268 Cash settled - 8,64,537 equity settled - 1,20,83,636 ` 1 ` 1 ` 286.90 ` 302.15 3 years 50.95% 3 years 7.11% 7.07% 10% p.a ` 182.46 3 years 49.67% 3 years 6.80% 5.02% 10% p.a ` 193.97 Weighted average share price at the date of exercise of stock options was ` 303.80 (31 March 2022: ` 339.32) The weighted average remaining contractual life for the share options outstanding was 1.76 years (31 March 2022: 1.62 years). The Group recognized total expenses of ` 85 Crore (31 March 2022: ` 43 Crore) related to equity settled share-based payment transactions for the year ended 31 March 2023. The total expense recognised on account of cash settled share based plan during the year ended 31 March 2023 is ` 1 Crore (31 March 2022: ` 14 Crore) and the carrying value of cash settled share based compensation liability as at 31 March 2023 is ` 11 Crore (31 March 2022: ` 19 Crore). Employee stock option plans of erstwhile Cairn India Limited: The Company has provided CIESOP share based payment scheme to its employees. CIESOP plan TherearenospecificvestingconditionsunderCIESOPplanotherthancompletionoftheminimumserviceperiodof3years 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 Year ended 31 March 2023 Year ended 31 March 2022 Number of options Weighted average exercise price in ` Number of options Weighted average exercise price in ` (` in Crore) Outstanding at the beginning of the year 10,37,641 286.9 33,15,174 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 Nil Nil 2,66,914 7,70,727 - - NA NA 286.85 286.85 - - Nil Nil 4,83,085 17,94,448 10,37,641 10,37,641 Weighted average share price at the date of exercise of stock options was ` 411.80 (31 March 2022: ` 375.89) 287.3 NA NA 286.85 287.70 286.85 286.85 535 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Scheme (` in Crore) Range of exercise price in ` Weighted average remaining contractual life of options (in years) Weighted average exercise price in ` The details of exercise price for stock options outstanding as at 31 March 2023 are: CIESOP Plan The details of exercise price for stock options outstanding as at 31 March 2022 are: CIESOP Plan 286.85 286.85 - 0.31 286.85 286.85 In respect of one of the Group's subsidiary, the Group has awarded certain cash settled share based options indexed to equity valuation of the subsidiary. The total (reversal)/expense recognised on account of cash settled share based plan during the year ended 31 March 2023 is ` (5) Crore (31 March 2022: ` 24 Crore) and the carrying value of cash settled share based compensation liability as at 31 March 2023 is ` 44 Crore (31 March 2022: ` 112 Crore). Out of the total expense of ` 80 Crore (31 March 2022: ` 81 Crore) pertaining to equity settled and cash settled options for the year ended 31 March 2023, the Group has capitalised ` 3 Crore (31 March 2022: ` 2 Crore). 33 Employee Benefit Plans TheGroupparticipatesindefinedcontributionandbenefitplans,theassetsofwhichareheld(wherefunded)inseparately administered funds. Fordefinedcontributionplans,theamountchargedtotheconsolidatedstatementofprofitandlossisthetotalamountof contributions payable in the year. Fordefinedbenefitplans,thecostofprovidingbenefitsundertheplansisdeterminedbyactuarialvaluationseparately eachyearforeachplanusingtheprojectedunitcreditmethodbyindependentqualifiedactuariesasattheyearend. Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year. i) Defined contribution plans The Group contributed a total of ` 146 Crore and ` 139 Crore for the year ended 31 March 2023 and 31 March 2022 respectivelytothefollowingdefinedcontributionplans. Particulars Employer’s contribution to recognised provident fund and family pension fund Employer’s contribution to superannuation Employer’s contribution to National Pension Scheme Indian pension plans Central recognised provident fund (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 118 21 7 146 111 23 5 139 In accordance with the ‘The Employee's Provident Funds and Miscellaneous Provisions Act, 1952’, employees are entitledtoreceivebenefitsundertheProvidentFund.Boththeemployeeandtheemployermakemonthlycontributions to the plan at a predetermined rate (12% for 2023 and 2022) of an employee’s basic salary, and includes contribution made to Family Pension fund as explained below. 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 theGOIbeyonditsmonthlycontributionswhicharechargedtotheconsolidatedstatementofprofitandlossintheyear they are incurred. 536 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Family pension fund The Pension Fund was established in 1995 and is managed by the Government of India. The employee makes no contributiontothisfundbuttheemployermakesacontributionof8.33%ofsalaryeachmonthsubjecttoaspecified ceilingperemployee(includedinthe12%ratespecifiedabove).Thisisprovidedforeverypermanentemployeeon 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,regardlessofwhetherthecentralfundisinsurplusordeficit. Superannuation Superannuation, another pension scheme, is applicable only to executives above certain grade. However, in case of the oil&gasbusiness(applicablefromthesecondyearofemployment)andIronOreSegment,thebenefitisapplicable to all executives. Vedanta Limited and each relevant Indian subsidiary holds a policy with Life Insurance Corporation ofIndia(“LIC”),towhicheachoftheseentitiescontributesafixedamountrelatingtosuperannuationandthepension 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 profitandlossintheyeartheyareincurred. National Pension Scheme National Pension Scheme is a retirement savings account for social security and welfare applicable for executives coveredunderthesuperannuationbenefitofVedantaLimitedandeachrelevantIndiansubsidiary,onachoicebasis.It wasintroducedtoenableemployeestoselectthetreatmentofsuperannuationcomponentoftheirfixedsalariesand availthebenefitsofferedbyNationalPensionSchemelaunchedbyGovernmentofIndia.VedantaLimitedandeach relevant entity holds a corporate account with one of the pension fund managers authorized by the Government of India towhicheachoftheentitycontributesafixedamountrelatingtosuperannuationandthepensionannuitywillbemet by the fund manager as per rules of National Pension Scheme. The Group has no further obligations under the scheme beyonditsmonthlycontributionswhicharechargedtotheconsolidatedstatementofprofitandlossintheyearthey are incurred. Australian pension scheme TheGroupalsoparticipatesindefinedcontributionsuperannuationschemesinAustralia.Thecontributionofa 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, 10.00% (2022: 10.00%) of an employee’s gross remuneration where the employee is covered by an industrial agreement and 13.00% (2022: 13.00%) 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 profitandlossintheyeartheyareincurred. Skorpion Zinc Provident Fund, Namibia TheSkorpionZincProvidentFundisadefinedcontributionfundandiscompulsorytoallfulltimeemployeesunderthe ageof60.TheGroupcontributiontothefundisafixedpercentageof9%permonthofpensionablesalary,whilstthe employee contributes 7% with the option of making additional contributions, over and above the normal contribution, up to a maximum of 12%. Normalretirementageis60yearsandbenefitpayableisthemember’sfundcreditwhichisequaltoallemployerand 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. 537 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED The Group has no additional liability beyond the contributions that it makes. Accordingly, this scheme has been accountedforonadefinedcontributionbasisandcontributionsarechargeddirectlytotheconsolidatedstatementof profitandlossintheyeartheyareincurred. 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 financialserviceprovider.Thepurposeofthefundsistoprovideretirementanddeathbenefitstoalleligibleemployees. TheGroupcontributesatafixedpercentageof10.5%foruptosupervisorgradeand15%forothers. 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 accountedforonadefinedcontributionbasisandcontributionsarechargeddirectlytotheconsolidatedstatementof profitandlossintheyeartheyareincurred. 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 Funds and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulates that the employershallmakegooddeficiency,ifany,betweenthereturnguaranteedbythestatuteandactualearningofthe Fund. Based on actuarial valuation in accordance with Ind AS 19 and the Guidance note issued by the 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 at 31 March 2023 and 31 March 2022. Having regard to the assets of the fund and the return on the investments, the Group does not expect any deficiencyintheforeseeablefuture. The Group contributed a total of ` 78 Crore for the year ended 31 March 2023 and ` 47 Crore for the year ended 31 March 2022 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 Presentvalueofdefinedbenefitobligation 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 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 2,626 (2,618) NIL 2,532 (2,510) NIL (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 45.15% 38.32% 16.53% 0.00% 0.00% 58.62% 35.54% 4.64% 1.20% 0.00% (b) Post-Retirement Medical Benefits: TheGrouphasaschemeofmedicalbenefitsforemployeesatBMMandBALCOsubsequenttotheirretirementon completion of tenure including retirement on medical grounds and voluntary retirement on contributory basis. The scheme includes an employee’s spouse as well. Based on an actuarial valuation conducted as at year-end, a provision 538 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS isrecognisedinfullforthebenefitobligation.Theobligationrelatingtopost-retirementmedicalbenefitsasat31March 2023 was ` 101 Crore (31 March 2022: ` 100 Crore). 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’.Thecurrentservicecostfortheyearending31March2023of` 1 Crore (31 March 2022: ` 1 Crore) has been recognisedinconsolidatedstatementofprofitandloss.Theremeasurementlossesandnetinterestontheobligation ofpost-retirementmedicalbenefitsof` 1 Crore (31 March 2022: ` 7 Crore) and ` 9 Crore (31 March 2022: ` 9 Crore) for theyearended31March2023havebeenrecognisedinothercomprehensiveincomeandfinancecostrespectively. (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 definedbenefitplan(the“GratuityPlan”)coveringcertaincategoriesofemployees.TheGratuityPlanprovidesalump 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 recognisedinfullforthebenefitobligationoverandabovethefundsheldintheGratuityPlan.Forentitieswherethe 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 recognized by Income Tax Authorities for gratuity to employees and contributions to the trust are funded with the Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance Company Limited (ICICI) and HDFC Life Insurance Company Limited (HDFC). Principal actuarial assumptions PrincipalactuarialassumptionsusedtodeterminethepresentvalueoftheOtherpost-employmentbenefitplan 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 Presentvalueofdefinedbenefitobligations Net liability arising from defined benefit obligation (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 7.39% 2%-15% 7.16% 2%-15% IALM (2012-14) IALM (2012-14) (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 443 (623) (180) 441 (599) (158) AmountsrecognisedintheconsolidatedstatementofprofitandlossinrespectofOtherpost-employmentbenefitplan are as follows: Particulars Current service cost Net interest cost Components of defined benefit costs recognised in consolidated statement of profit and loss (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 43 12 55 39 12 51 539 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED AmountsrecognisedinothercomprehensiveincomeinrespectofOtherpost-employmentbenefitplanareasfollows: Particulars Re-measurement of the net defined benefit obligation:- Actuariallossesarisingfromchangesinfinancialassumptions Actuarial losses/ (gains) 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 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 1 9 (3) 3 10 17 (5) (3) 2 11 ThemovementofthepresentvalueoftheOtherpost-employmentbenefitplanobligationisasfollows: Particulars Opening balance Current service cost Benefitspaid Interest cost Actuarial losses / (gains) arising from changes in assumptions Closing balance (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 599 43 (71) 42 10 623 576 39 (64) 39 9 599 ThemovementinthefairvalueofOtherpost-employmentbenefitplanassetsisasfollows: Particulars Opening balance Contributions received Benefitspaid Re-measurement gain/(loss) arising from return on plan assets Interest income Closing balance (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 441 28 (54) (3) 31 443 401 69 (54) (2) 27 441 Theaboveplanassetshavebeeninvestedinthequalifiedinsurancepolicies. The actual return on plan assets was ` 28 Crore (31 March 2022: ` 25 Crore). Theweightedaveragedurationofthedefinedbenefitobligationis11.58years(31March2022:13.25years). The Group expects to contribute `54Croretothefundeddefinedbenefitplansduringtheyearending31March2024. Sensitivity analysis for Defined Benefit Plan Belowisthesensitivityanalysisdeterminedforsignificantactuarialassumptionsforthedeterminationofdefined benefitobligationandbasedonreasonablypossiblechangesoftherespectiveassumptionsoccurringattheendofthe reporting period while holding all other assumptions constant. 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% 540 (` in Crore) Increase/(Decrease) in defined benefit obligation Year ended 31 March 2023 Year ended 31 March 2022 (24) 26 23 (22) (23) 25 22 (21) NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Theabovesensitivityanalysismaynotberepresentativeoftheactualbenefitobligationasitisunlikelythatthechange in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Inpresentingtheabovesensitivityanalysis,thepresentvalueofdefinedbenefitobligationhasbeencalculatedusing the projected unit credit method at the end of reporting period, which is the same as that applied in calculating the definedobligationliabilityrecognizedintheconsolidatedbalancesheet. Risk analysis Groupisexposedtoanumberofrisksinthedefinedbenefitplans.Mostsignificantriskspertainingtodefinedbenefit plans and management estimation of the impact of these risks are as follows: Investment risk MostoftheIndiandefinedbenefitplansarefundedwiththeLIC,ICICIandHDFC.TheGroupdoesnothaveanylibertyto manage the fund provided to LIC, ICICI and HDFC. Thepresentvalueofthedefinedbenefitplanobligationiscalculatedusingadiscountratedeterminedbyreferenceto Government of India bonds for the Group’s Indian operations. If the return on plan asset is below this rate, it will create aplandeficit. Interest risk A decrease in the interest rate on plan assets will increase the net plan obligation. Longevity risk / Life expectancy Thepresentvalueofthedefinedbenefitplanobligationiscalculatedbyreferencetothebestestimateofthemortality 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 Thepresentvalueofthedefinedbenefitplanobligationiscalculatedbyreferencetothefuturesalariesofplan participants. An increase in the salary of the plan participants will increase the plan obligation. # Code on Social Security, 2020 TheCodeonSocialSecurity,2020(‘Code’)relatingtoemployeebenefitsduringemploymentandpost-employment benefitsreceivedPresidentialassentinSeptember2020.TheCodehasbeenpublishedintheGazetteofIndia.However, thedateonwhichtheCodewillcomeintoeffecthasnotbeennotifiedandthefinalrules/interpretationhavenotyet 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. 34 Finance cost Particulars Interestexpenseonfinancialliabilitiesatamortisedcost Otherfinancecosts Netinterestondefinedbenefitarrangement Unwinding of discount on provisions Exchange difference regarded as an adjustment to borrowing cost Less:Capitalisationoffinancecost/borrowingcost Less: Cost allocated/directly booked in joint ventures Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 6,212 380 21 96 - (483) (1) 6,225 4,712 294 21 78 7 (313) (2) 4,797 a) b) c) Interest rate of 6.75 % (31 March 2022: 7.39%) was used to determine the amount of general borrowing costs eligible for capitalization in respect of qualifying asset for the year ended 31 March 2023. Interest expense on income taxes is ` 77 Crore (31 March 2022: ` 0 Crore). Interest expense on lease liabilities for the year ended is ` 14 Crore (31 March 2022: ` 14 Crore) 541 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 35 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 translations Other selling expenses Insurance Lossonsale/disposaloffixedasset(net) Rent* Rates and taxes Exploration costs written off 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. (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 3,238 5,860 3,769 3,593 3,332 277 213 2,827 3,163 554 29 292 9 61 39 327 11 415 7,097 (418) 34,688 3,036 4,385 3,304 2,770 2,896 215 215 2,927 2,661 156 17 269 - 38 78 - 11 233 5,797 (331) 28,677 36 Exceptional items Particulars Property, plant and equipment, exploration intangible assets under development, capital work-in-progress and other assets (impaired)/ reversal or (written off)/ written back in: - Oil & Gas 1) Exploration cost written off a 2) Reversal of previously recorded impairment b - Iron Ore - Reversal of previously recorded impairment of assets in Liberia on commencement of mining operations c - Aluminium d - Others e, f - Unallocated g SAED on Oil and Gas sector h Provision for legal disputes (including change in law), force majeure and similar incidences in: - Aluminium i - Copper j - Zinc, Lead and Silver - India k - Other segment l Total 542 Year ended 31 March 2023 Year ended 31 March 2022 Exceptional items Tax effect of Exceptional items Exceptional items after tax Exceptional items Tax effect of Exceptional items Exceptional items after tax (` in Crore) - - 644 - 109 - (970) - - - - (217) - - - - (38) - 312 - - - - 274 - - (2,618) 2,697 1,020 (1,059) (1,598) 1,638 644 - - 71 - (658) - - - - 57 (125) (52) (24) (288) (217) (134) (7) (768) - 44 17 8 80 19 47 2 178 - (81) (35) (16) (208) (198) (87) (5) (590) NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS a) During the year ended 31 March 2022, based on the outcome of exploration and appraisal activities in its PSC block RJON-90/1 block and RSC blocks awarded under OALP (Open Acreage Licensing Policy), an amount of ` 2,618 Crore towards unsuccessful explorationcosthadbeenchargedofftotheconsolidatedstatementofprofitandloss,asthesehadproventobeeithertechnicallyor commercially unviable. b) During the year ended 31 March 2022, the Group had recognized an impairment reversal of ` 2,697 Crore on its assets in the oil and gas segment comprising: 1) Impairment reversal of ` 2,581 Crore relating to Rajasthan oil and gas block (“CGU”) mainly due to increase in crude price forecast. Of this, ` 1,638 Crore impairment reversal had been recorded against oil and gas producing facilities and ` 943 Crore impairment reversal had been recorded against exploration intangible assets under development. The recoverable amount of the Company’s share in Rajasthan Oil and Gas cash generating unit “RJ CGU” was determined to be ` 10,285 Crore (US$ 1,361 million) as at 31 March 2022. The recoverable amount of the RJ CGU 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 the Company’s view of the assumptions that would be used by a market participant. This was based on the cash flows expected to be generated bytheprojectedoilandnaturalgasproductionprofilesuptotheexpecteddatesofcessationofproductionsharingcontract (PSC)/cessationofproductionfromeachproducingfieldbasedonthecurrentestimatesofreservesandriskedresources. 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 $ 86 per barrel for the next one year and tapers down to long-term nominal price of US $ 68 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 9.88% derived from the post-tax weighted average cost of capital after factoring in the risks ascribed to PSC extension including successful implementation of key growth projects. 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 ` 204 Crore (US$ 27 million) and ` 311 Crore (US$ 41 million) respectively. 2) Impairment reversal of ` 116 Crore relating to KG-ONN-2003/1 CGU mainly due to increase in crude price forecast and increase in recoverable reserves. The recoverable amount of the Company’s share in this CGU was determined to be ` 208 Crore (US$ 27 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 short-term oil price of US $ 86 per barrel for the next one year and tapers down to long-term nominal price of US$ 68 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 10.63%. The sensitivities around change in crude price and discount rate are not material to thefinancialstatements. c) During the current year, WCL has signed a Memorandum of Understanding with the Government of Liberia to re-start its mining operations and commenced commercial production at its Bomi Mines from July 2022. Consequently, the net recoverable value of assets and liabilities of WCL has been assessed at ` 891 Crore based on the value-in-use approach, using the Discounted Cash Flow Method, a level 3 valuation technique in the fair value hierarchy as it more accurately reflects the recoverable amount. The impairment assessment is based on a range of estimates and assumptions, including long-term selling price as per the consensus report, volumes based on the mine planning and concentrate plant setup and a post-tax nominal discount rate of 14.45%. Any subsequent changes to cash flows due to changes in the above-mentioned factors could impact the carrying value of the assets. Based on the sensitivities carried out by the Company, a decrease in the long-term selling price by 1% would lead to a decrease in the recoverable value by ` 50 Crore and an increase in the discount rate by 1% would lead to a decrease in the recoverable value by ` 74 Crore. Accordingly, the impairment recorded in previous periods has been reversed, to an extent of ` 644 Crore pertaining only to the assets of the Bomi Mine. In relation to a mine in Aluminium business of the Company, the Company had deposited ` 125 Crore with the Government of India. Thereafter, the MoEF&CC and the Supreme Court declared the mining project inoperable on environmental grounds. Later, in 2017, the mining license lapsed. Accordingly, the deposit was fully provided for during the previous year. During the year ended 31 March 2022, ESL Steel Limited had recognised a provision of ` 46 Crore relating to certain items of capital work-in-progressbasisthephysicalverification. During the year ended 31 March 2022, ` 6 Crore was written off being the cost of land located outside the plant for which details of original owners/sellers etc., were not available and the physical possession or the registered ownership of the same as such cannot be obtained. During the year ended 31 March 2022, the Company had recognised a loss of ` 24 Crore relating to certain items of capital work-in- progress at one of its closed unit in Gujarat, which are no longer expected to be used. TheGovernmentofIndia("GoI")videitsnotificationdated30June2022leviedSpecialAdditionalExciseDuty("SAED")onproduction of crude oil, i.e., cess on windfall gain triggered by increase in crude oil prices which is effective from 01 July 2022. The consequential net impact of the said duty has been presented as an exceptional item. d) e) f) g) h) i) Duringtheyearended31March2022,MoEF&CCnotifiedguidelinesforthermalpowerplantsfordisposalofflyashandbottom 543 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED ashproducedduringpowergenerationprocess.Effective01April2022,thenotificationintroducedathree-yearcycletoachieve averageashutilisationof100percent.Thefirstthree-yearcycleisextendablebyanotheroneyearortwoyearswhereashutilisation percentage is in the range of 60-80 per cent or less than 60 per cent, respectively. Further, unutilised accumulated ash, i.e., legacy flyashstoredwithsuchpowerplantspriortothedateofthisnotificationisrequiredtobeutilizedfullyoveratenyearperiod withminimumtwentypercent,thirtypercentandfiftypercentutilisationofannualashgenerationinyear1,year2andyears3-10 respectively. Such provisions are not applicable where ash pond or dyke has stabilised and the reclamation has taken place with greenbeltorplantation.TheGrouphadperformeddetailedevaluationsforitsobligationsunderthisnotificationandhadrecorded ` 288 Crore as an exceptional item for the year ended 31 March 2022, towards estimated costs of legacy fly ash utilization including reclamation costs. j) A provisional liquidator (‘PL’) was appointed to manage the affairs of Konkola Copper Mines plc (KCM) on 21 May 2019, after ZCCM InvestmentsHoldingsPlc(ZCCM-IH),anentitymajorityownedbytheGovernmentofZambiaanda20.6%shareholderinKCM,fileda 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 and have also commenced arbitration against ZCCM-IH, consistent with their position that arbitration is the agreed dispute resolution process, together with an application to the South African courts to stay the winding up proceedings consistent with the agreement to arbitrate. Meanwhile, KCM has not been supplying goods to the Company and/ or its subsidiaries, which it was supposed to as per the terms of the advance. During the previous year, the Group recognised provisions for expected credit losses of ` 217 Crore. As of 31 March 2023, the Group carries provisions of ` 644 Crore (31 March 2022: ` 644 Crore). Consequently, receivables from KCM as at 31 March 2023 are ` NIL Crore (31 March 2022: ` NIL Crore). k) During the year ended 31 March 2022, HZL had recognised an expense of ` 134 Crore relating to amount charged in respect of settlement of entry tax dispute under Amnesty Scheme launched by the Government of Rajasthan. l) Refer note 3(c)(A)(v). 37 Tax (a) Tax charge/(credit) recognised in profit or loss (including on exceptional items) Particulars Current tax: Currenttaxonprofitfortheyear Benefitinrespectofcurrenttaxforearlieryears Benefitinrespectofexceptionalitems(Refernote36) Total Current Tax (a) Deferred tax: (Benefit)/Reversaloftemporarydifferences Benefitinrespectofdeferredtaxforearlieryears (Benefit)/Reversalinrespectofexceptionalitems(Refernote36) Deferred Tax (b) Total income tax expense for the year (a+d) Profit before tax Effective income tax rate (%) Tax expense Particulars Tax effect on exceptional items Tax expense- others Net tax expense 544 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 7,739 (115) (122) 7,502 (1,503) (77) (152) (1,732) 5,770 20,276 28% 6,892 (3) (580) 6,309 2,627 (83) 402 2,946 9,255 32,964 28% (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (274) 6,044 5,770 (178) 9,433 9,255 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS (b) AreconciliationofincometaxexpenseapplicabletoprofitbeforetaxattheIndianstatutoryincometaxrateto recognise income tax expense for the year indicated are as follows Particulars Profit before tax Indian statutory income tax rate Tax at statutory income tax rate Non-taxable income Tax holidays and similar exemptions Effect of tax rate differences of subsidiaries operating at other tax rates Unrecognised tax assets (net) (i) Change in deferred tax balances due to change in tax law Capital gains/ Other income subject to lower tax rate (ii) Credit in respect of earlier years Other permanent differences Total (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 20,276 34.944% 7,085 (94) (534) 97 63 (288) (522) (192) 155 32,964 34.944% 11,519 (137) (1,953) 128 10 (114) (344) (86) 233 5,770 9,255 (i) (ii) Current year includes ` 180 Crore of deferred tax assets on brought forward losses of Facor Power Limited recognised post its mergerwithFacorAlloysCorporationLimited.Basedonthefinancialforecastsofthemergedentity,itisprobabletorealisethe deferred tax assets. (Refer Note 4) Current year majorly includes ` 505 Crore on account of dividend received from foreign subsidiary taxable at lower rate of 17.472% CertainbusinessesoftheGroupwithinIndiaareeligibleforspecifiedtaxincentiveswhichareincludedinthetable 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, profitsofnewlyestablishedundertakingslocatedincertainareasinIndiamaybenefitfromtaxholidayundersection 80ICoftheIncometaxAct,1961.Suchtaxholidayworkstoexempt100%oftheprofitsforthefirstfiveyearsfromthe commencementofthetaxholiday,and30%ofprofitsforthesubsequentfiveyears.Thisdeductionisavailableonly for units established up to 31 March 2012. However, such undertaking would continue to be subject to the Minimum Alternative tax (‘MAT’). Sectoral Benefit - Power Plants and Port Operations To encourage the establishment of infrastructure certain power plants and ports have been offered income tax exemptionsofupto100%ofprofitsandgainsforanytenconsecutiveyearswithinthe15yearperiodfollowing commencement of operations subject to certain conditions under section 80IA of the Income tax Act, 1961. The Group currently has total operational capacity of 8.25 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. TheGrouphaspowerplantswhichbenefitfromsuchdeductions,atvariouslocationsofHindustanZincLimited, VedantaLimited(wheresuchbenefitshasbeendrawn),TalwandiSaboPowerLimitedandBharatAluminiumCompany Limited(wherenobenefithasbeendrawn). Further,taxincentivesexistforcertainotherinfrastructurefacilitiestoexempt100%ofprofitsandgainsforanyten consecutive years within the 20 year period following commencement of these facilities’ operation, provided certain conditions are met. HZL currently has certain eligible facilities. However, such facilities would continue to be subject to the MAT provisions. 545 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED TheGroupoperatesazincrefineryinExportProcessingZone,Namibiawhichhasbeengrantedtaxexemptstatusby 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. The total effect of such tax holidays and exemptions was ` 534 Crore for the year ended 31 March 2023 (31 March 2022: ` 1,953 Crore). (c) Deferred tax assets/liabilities TheGrouphasaccruedsignificantamountsofdeferredtax.Themajorityofthedeferredtaxassetsrepresents unabsorbed depreciation and carried forward losses and unused tax credits in the form of MAT credits carried forward, net of deferred tax liability representing accelerated tax relief for the depreciation of property, plant and equipment, depreciation of mining reserves and the fair value uplifts created on acquisitions. SignificantcomponentsofDeferredtax(assets)andliabilitiesrecognizedintheconsolidatedbalancesheetareasfollows: For the year ended 31 March 2023 Significant components of Deferred tax (assets) and liabilities Property, Plant and Equipment Voluntary retirement scheme Employeebenefits Fair valuation of derivative asset/liability Fair valuation of other asset/liability MAT credit entitlement Unabsorbed depreciation and business losses Other temporary differences Total For the year ended 31 March 2022 Opening balance as at 01 April 2022 Charged / (credited) to statement of profit or loss Charged/ (credited) to other comprehensive income Charged / (credited) to equity Exchange difference transferred to translation of foreign operation (` in Crore) Closing balance as at 31 March 2023 11,506 (39) (377) (97) 628 (6,746) (4,490) (1,035) (650) 957 14 20 28 126 (2,586) (398) 106 (1,733) - - (11) (6) - (50) - (32) (99) - - 7 - - - - - 7 (48) 12,415 - 5 - 6 - - (62) (99) (25) (356) (75) 760 (9,382) (4,888) (1,023) (2,574) Significant components of Deferred tax (assets) and liabilities Opening balance as at 01 April 2022 Charged / (credited) to statement of profit or loss Charged/ (credited) to other comprehensive income Charged / (credited) to equity Exchange difference transferred to translation of foreign operation Property, Plant and Equipment Voluntary retirement scheme Employeebenefits Fair valuation of derivative asset/liability Fair valuation of other asset/liability MAT credit entitlement Unabsorbed depreciation and business losses Other temporary differences Total 9,683 (54) (174) (37) 701 (8,232) (4,698) (834) (3,645) 1,735 15 (201) (21) (31) 1,505 208 (264) 2,946 - - (1) (39) - (7) - 74 27 - - 10 - - (16) - - (6) 88 - (11) - (42) 4 - (11) 28 (` in Crore) Closing balance as at 31 March 2023 11,506 (39) (377) (97) 628 (6,746) (4,490) (1,035) (650) 546 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 (` in Crore) Year ended 31 March 2023 Year ended 31 March 2022 (8,495) 5,922 (2,573) (5,085) 4,435 (650) Recognition of deferred tax assets on MAT credit entitlement is based on the respective legal entity's present estimates andbusinessplansasperwhichthesameisexpectedtobeutilizedwithinthestipulatedfifteenyearperiodfromthe date of origination (Refer note 3(c)(A)(ii)). DeferredtaxassetsintheGrouphavebeenrecognisedtotheextenttherearesufficienttaxabletemporarydifferences 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 recognized amount to ` 7,335 Crore and ` 9,818 Crore as at 31 March 2023 and 31 March 2022 respectively. As at 31 March 2023 Unused tax losses/ unused tax credit Unutilised business losses Unabsorbed depreciation Unutilised R&D credit Total As at 31 March 2022 Unused tax losses/ unused tax credit Unutilised business losses Unabsorbed depreciation Unutilised R&D credit Total Within one year Greater than one year, less than five years Greater than five years No expiry date 689 - - 689 2,621 2,040 - 0 - - 2,622 2,040 - 1,985 - 1,985 Within one year Greater than one year, less than five years Greater than five years No expiry date 31 - - 31 3,217 3,116 - - - - 3,217 3,116 2,005 1,439 10 3,454 (` in Crore) Total 5,350 1,985 0 7,335 (` in Crore) Total 8,369 1,439 10 9,818 No deferred tax assets has been recognised on these unused tax losses/ unused tax credit as there is no evidence that sufficienttaxableprofitwillbeavailableinfutureagainstwhichthesecanbeutilisedbytherespectiveentities. 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 ` 24,130 Crore and ` 36,947 Crore as at 31 March 2023 and 31 March 2022 respectively. 547 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED (d) Non- current tax assets Non- current tax assets of ` 1,635 Crore (31 March 2022: ` 2,762 Crore) 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 issued demands on account of remeasurement of certain tax incentives, under section 80IA and 80 IC of the Income-tax Act, 1961. During the year ended 31 March 2020, based on the favorable 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 depositedunderprotest.AgainsttheTribunalorder,thedepartmenthadfiledanappealinHon’bleRajasthanHighCourt infinancialyear17-18whichisyettobeadmitted.Aspertheviewofexternallegalcounsel,Department’sappealseeks 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. Accordingly, there is a high probability that the case will go in favour of the Company. The amount involved in this dispute as of 31 March 2023 is ` 12,447 Crore (31 March 2022: ` 11,369 Crore) plus applicable interest upto the date of settlement of the dispute. 38 Earnings per equity share (EPS) Particulars ProfitaftertaxattributabletoequityshareholdersforBasicandDilutedEPS Computation of weighted average number of shares 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 per equity share (`) Diluted earnings per equity share (`) Nominal Value per Share (in `) 39 Distributions made and proposed Particulars Amounts recognised as distributions to equity share holders: Interim dividends: ` 101.50/- per share (31 March 2022:` 45.00/- per share) Refund of dividend distribution tax (` in Crore, except otherwise stated) Year ended 31 March 2023 Year ended 31 March 2022 10,574 18,802 370.97 370.65 2.41 373.38 28.50 28.32 1.00 2.56 373.21 50.73 50.38 1.00 A B C A / B A / C (` in Crore, except otherwise stated) Year ended 31 March 2023 Year ended 31 March 2022 37,658 (86) 37,572 16,681 - 16,681 40 Commitments, contingencies and guarantees A) Commitments TheGrouphasanumberofcontinuingoperationalandfinancialcommitmentsinthenormalcourseof business including: • Exploratory mining commitments; • Oil and gas commitments; • Mining commitments arising under production sharing agreements; and • Completion of the construction of certain assets. 548 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS a) Estimated amount of contracts remaining to be executed on capital accounts and not provided for: Particulars Oil & Gas sector Cairn India Aluminium sector LanjigarhRefinery(PhaseII) Jharsuguda 1.25 MTPA smelter BALCO smelter expansion 0.57 MTPA to 1 MTPA Zinc sector Zinc India (mines expansion and smelter) Gamsberg mining and milling project Gamsberg mining and milling project (Phase II) Copper sector Tuticorin Smelter 400 KTPA* Others Total *currently contracts are under suspension under the force majeure clause as per the contract b) Committed work programme (Other than capital commitment): Particulars Oil & Gas sector Cairn India (OALP - New Oil and Gas blocks) c) Other Commitments (` in Crore) As at 31 March 2023 As at 31 March 2022 1,412 2,439 1,266 6,700 1,750 - 1,950 3,066 3,843 22,426 2,169 2,861 1,577 4,643 507 206 - 3,051 3,843 18,857 (` in Crore) As at 31 March 2023 As at 31 March 2022 5,184 5,615 (i) The Power Division of the Group 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%) atvariablecostaspertheconditionsreferredtoinPPA.ThePPAhasatenureoftwentyfiveyears,expiringin FY 2037. The Group received favourable order from OERC dated 05 October 2021 for conversion of Independent Power Plant ("IPP") to Captive Power Plant ("CPP") w.e.f from 01 January 2022 subject to certain terms and conditions. However, OERC vide order dated 19 February 2022 directed the Group to supply power to GRIDCO from 19 February 2022 onwards. Thereafter, the Group has resumed supplying power to GRIDCO from 01 April 2022 as per GRIDCO’s requisition. The OERC vide its order dated 03 May 2023 has reviewed its previous order dated 05 October 2021 and directed theGrouptooperateUnit2asanIPP.TheGroupisinprocessoffilinganappealagainstthesaidorder. (ii) TSPL has signed a long term PPA with the Punjab State Power Corporation Limited (PSPCL) for supply of power generatedfromthepowerplant.ThePPAhastenureoftwentyfiveyears,expiringinFY2042. (iii) During the current year ended 31 March 2023, the Group has executed new Power Delivery Agreements ("PDA") with Serentica group companies (Serentica Renewables India 1 Private Limited, Serentica Renewables India 3 Private Limited, Serentica Renewables India 4 Private Limited, Serentica Renewables India 5 Private Limited, Serentica Renewables India 6 Private Limited, Serentica Renewables India 7 Private Limited and Serentica Renewables India 9 Private Limited), which are associates of Volcan, for procuring renewable power over twenty fiveyearsfromdateofcommissioningofthecombinedrenewableenergypowerprojects(“theProjects”) on a group captive basis. These Serentica group companies were incorporated for building the Projects of approximately 1,246 MW (31 March 2022: 380 MW). During the current year, the Group has invested ` 249 Crore in Optionally Convertible Redeemable Preference shares (“OCRPS”) of ` 10 each of Serentica group companies. These OCRPS will be converted into equity basis conversion terms of the PDA, resulting in Vedanta Group holding 549 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED twenty six percent stake in its equity. As at 31 March 2023, total outstanding commitments related to PDA with Serentica Group Companies are ` 1,598 Crore (31 March 2022: ` 480 Crore). B) Guarantees The aggregate amount of indemnities and other guarantees on which the Group does not expect any material losses, was ` 8,470 Crore (31 March 2022: ` 6,564 Crore). a) b) Guarantees and bonds advanced to the customs authorities in India of ` 1,339 Crore relating to the export and payment of import duties on purchases of raw material and capital goods (31 March 2022: ` 492 Crore). Guarantees issued for Group’s share of minimum work programme commitments of ` 2,742 Crore (31 March 2022: ` 2,881 Crore). c) Guarantees of ` 80 Crore issued under bid bond (31 March 2022: ` 98 Crore). d) Bank guarantees of ` 115 Crore (31 March 2022: ` 115 Crore) 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 ` 4,194 Crore (31 March 2022: ` 2,978 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 Group does not anticipate any liability on these guarantees. C) Export Obligations The Indian entities of the Group have export obligations of ` 1,381 Crore (31 March 2022: ` 950 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. In the event of the Group’s inability to meet its obligations, the Group’s liability would be ` 322 Crore (31 March 2022: ` 207 Crore) reduced in proportion to actual exports, plus applicable interest. The Group has given bonds of ` 809 Crore (31 March 2022: ` 1,915 Crore) 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 Crore (31 March 2022: ` 334 Crore) claiming unlawful occupation and unauthorised mining of associated minerals other than zinc and lead at HZL’s Rampura Agucha, Rajpura Dariba andZawarminesinRajasthanduringtheperiodfromJuly1968toMarch2006.Inresponse,HZLfiledawritpetition 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 MinesandGeologyadditionaltimetofiletheirreplyandalsoorderedtheDepartmentofMinesandGeologynotto issueanyorderscancellingthelease.TheStateGovernmentfiledforanearlyhearingapplicationintheHighCourt. TheHighCourthaspassedanorderrejectingtheapplicationstatingthatCentralGovernmentshouldfiletheirreplies. HZL believes it is unlikely that the claim will lead to a future obligation and thus no provision has been made in these financialstatements. b) Ravva Joint Operations arbitration proceedings The Ravva Production Sharing Contract (PSC) obliges the contractor parties (including the Company (Cairn India Limited which subsequently merged with the Company, accordingly now referred to as the Company)) to pay a proportionate share of ONGC’s exploration, development, production and contract costs in consideration for ONGC’s 550 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 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 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 Group’s favour. GOI’s challenge of the Final Award has been dismissed by the Malaysian HighCourtandthenextappellatecourtinMalaysiai.e.MalaysianCourtofAppeal.GOIthenfiledanappealatFederal Court of Malaysia. The matter was heard on 28 February 2019 and the Federal Court dismissed GOI’s leave to appeal. TheGrouphasalsofiledfortheenforcementofthePartialAwardandFinalAwardbeforetheHon'bleDelhiHighCourt. The matter is currently being heard. While the Group 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, Group would be liable for approximately ` 526 Crore (US$ 64 million) plus interest. (31 March 2022: ` 484 Crore (US$ 64 million) plus interest). c) Proceedings related to the imposition of entry tax Vedanta Limited and other Group companies, i.e., BALCO and HZL challenged the constitutional validity of the local statutesandrelatednotificationsinthestatesofOdishaandRajasthanpertainingtothelevyofentrytaxontheentry 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 heard the matters and remanded the entry tax matters relating to the issue of discrimination against domestic goods bought from other States to the respectiveHighCourtsforfinaldeterminationbutretainedtheissueofjurisdictionforlevyonimportedgoods,for determinationbytheregularbenchoftheSupremeCourt.FollowingtheorderoftheSupremeCourt,theGroupfiledwrit 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 SEZbasedonthedefinitionof‘localarea’undertheOdishaEntryTaxActwhichisveryclearanddoesnotinclude 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. During the previous year, HZL has, under an Amnesty Scheme, settled the entry tax matter by making a payment of ` 134 Crore against total claims of ` 200 Crore. The total claims against Vedanta Limited and its subsidiaries (net of provisions made) are ` 823 Crore (31 March 2022: ` 825 Crore) including interest and penalty till the date of order. Further interest and penalty if any, would be additional. 551 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED d) 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 iseffectivelyonproductionandnotonconsumptionorsalesincethefiguresofconsumptionarenottakenintoaccount 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 sought refund of ED Cess paid till March 2006 amounting to ` 35 Crore. 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 has started before the Supreme Court. Considering the high court judgement in Group's favor, we do not believe the state will succeed in their claims. However, should the Supreme Court reverse the judgement, the Group will be liable to pay an additional amount of ` 1,091 Crore (31 March 2022: ` 1,017 Crore). As at 31 March 2023, an amount of ` 1,126 Crore relating to principal has been considered as a contingent liability (31 March 2022: ` 1,052 Crore). e) BALCO: Electricity Duty The Group operates a 1,200 MW power plant (“the Plant”) which commenced production in July 2015. Based on the Memorandum of Understanding signed between the Group and the Chhattisgarh State Government, the management believes that the Plant is covered under the Chhattisgarh Industrial policy 2004-09 which provides exemption of electricity duty for 15 years. In June 2021, the Chief Electrical Inspectorate, Raipur (“CIE”) issued a demand notice for electricity duty and interest thereon of ` 888 Crore and ` 588 Crore respectively for the period March 2015 to March 2021. The Group carries an accrual for electricity duty of ` 639 Crore (31 March 2022: ` 817 Crore), net of ` 570 Crore (31 March 2022: ` 226 Crore) paid under protest. BALCO has requested the CIE to allow payment of the principal amount over a period of 5 years along with a waiver of interest demand. BALCO has received a reply from CIE that the matter will bediscussedwithappropriateauthorities.Asat31March2023,noconfirmationhasbeenreceivedonthismatterand therefore an amount of ` 916 Crore (31 March 2022: ` 731 Crore) relating to interest is considered as a contingent liability. f) ESL: MDPA Mine Development and Production Agreement (MDPA) entered into by ESL with respect to the Nadidihi Iron Ore Block (74.50 Ha) and the Nadidihi Iron & Manganese Ore Block (117.206 Ha) in Orissa obligates certain minimum despatch requirement for each year from the commencement of mining, as prescribed under Sub Rule-1 of Rule 12(A) of the Minerals (other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016 (MCR 2016). ESL has received demand notices dated 03 December 2022 aggregating ` 1,708 Crore towards penalty for annual shortfallinminimumdespatchrequiredunderSubRule-1ofRule12(A)ofMCR2016,forthefirstyearofthelease for both the mines. Management believes that the aforesaid demands are unreasonable and arbitrary to the law on various grounds including the fact that the State Government has erroneously considered the wrong period to calculate the MDPA requirement as per Sub Rule 1 of Rule 12 (A) of MCR 2016. Further, ESL was unable to carry out mining operationforsignificantpartofthefirstyearowingtoreasonsbeyonditscontrol(ForceMajeure)andforthesaidthe period, is entitled to be afforded an additional period in terms of Section 12(1)(ff) of the Mineral (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, to meet the said minimum despatch requirement. Based on aforesaidgroundsthataresupportedbyalegalopinionobtainedinthisregard,Inter-alia,theGrouphasfiledthe Revision Application under Section 30 of the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) to keep the above demand notice in abeyance during the pendency of the proceedings before the Revisional Authority, MinistryofMinesandthesamehasbeeninformedtoOfficeoftheDeputyDirectorofminesthroughintimationletter. The Revisional Authority vide its order dated 14 March 2023 has put stay on the impugned demand notices and directed the State Government not to take any coercive action to realize the demand till further orders. Also, ESL has received the demand notices dated 11 April 2023 aggregating `50Croreforthefirstquarterofthe second-year lease period from 20 November 2022 till 19 November 2023 for both the mines, to which ESL has replied stating that these demand notices shall be kept in abeyance till the pendency of the proceedings before the Revisionary 552 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Authority,MinistryofMinesasthesimilarcontentionsweretakenbytheManagementintherevisionapplicationfiled againsttheearlierdemandnoticesforshortfallinthefirstyearofleaseperiod.Managementbelievesthattheaforesaid demands are unreasonable and arbitrary to the law on various grounds including the fact that the State Government has erroneously considered the wrong period to calculate the MDPA requirement as per Sub Rule 1 of Rule 12 (A) of MCR 2016. Basis MDPA and legal opinion received, any obligation in this regard can be termed as a remote. As a matter of prudence, aforesaid demand notices of ` 1,758 Crore have been disclosed as contingent liability in the financialstatements. g) Miscellaneous disputes- Income tax "The Group is involved in various tax disputes amounting to ` 1,455 Crore (31 March 2022: ` 1,359 Crore) 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 disallowances of tax holidays and depreciation under the Income-tax Act, 1961 and interest thereon which are pending at various appellate levels. Penalties, if any, may be additional. Based on detailed evaluations and supported by external legal advice, where necessary, the Group believes that it has strong merits and no material adverse impact is expected. h) Miscellaneous disputes- Others The Group is subject to various claims and exposures which arise in the ordinary course of its operations, from indirect tax authorities and others, pertaining to the assessable values of sales and purchases or 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 Group companies total ` 4,907 Crore (31 March 2022: ` 4,655 Crore). Based on evaluations of the matters and legal advice obtained, the Group believes that it has strong merits in its favor. Accordingly, no provision is considered at this stage. Except as described above, there are no pending litigations which the Group believes could reasonably be expected to haveamaterialadverseeffectontheresultsofoperations,cashflowsorthefinancialpositionoftheGroup. 41 Other Matters a) The Group purchases 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 October2020oftheHighCourtofOdisha,whichissubjecttofinaloutcomeofthewritpetitionfiledbytheGroup. The last successful e-auction based price discovery was done by OMC in April 2019 at ` 673/MT and supplied bauxite at this rate from September 2019 to September 2020 against an undertaking furnished by the Group 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 Group towards differential pricing and interest for bauxite supplied till September 2020 considering the auction base price of ` 1,707/MT. TheGrouphadthenfiledawritpetitionbeforeHighCourtofOdishainSeptember2020,whichissuedaninterimOrderdated 08 October 2020 directing that the petitioner shall be permitted to lift the quantity of bauxite mutually agreed on payment of `1,000/MTandfurnishinganundertakingforthedifferentialamount,subjecttofinaloutcomeofthewritpetition. OMC re-conducted e-auction on 09 March 2021 with floor price of ` 2,011/MT, which again was not successful. On 18 March 2021, Cuttack High Court issued an order that the current arrangement of bauxite price @ ` 1,000/MT will 553 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED continue for the FY 2021-22. Further, on 06 April 2022, the Cuttack High Court directed that the current arrangement will continue for the FY 2022-23 also. Supported by legal opinions, management believes that the provisions of Rule 45 of the Rules are not applicable to commercialsaleofbauxiteoreandhence,itisnotprobablethattheGroupwillhaveanyfinancialobligationtowards the aforesaid commitments over and above the price of ` 673/MT discovered vide last successful e-auction. However, as an abundant precaution, the Group has recognised purchase of Bauxite from September 2019 onwards at the aforesaid rate of ` 1,000/MT. b) The Department of Mines and Geology (DMG) of the State of Rajasthan initiated the royalty assessment process from January2008to2019andissuedashowcausenoticevideanofficeorderdated31January2020amountingto` 1,925 Crore.Further,anadditionaldemandwasissuedvideanofficeorderdated14December2020for` 311 Crore. The Group has challenged the show cause notice and computation mechanism of the royalty itself, and the 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 to recover such miscomputed dues. Further, Revisionary Authority(RA), has granted a stay on the recovery under the March 2022 notice of ` 1,423 Crore & the recovery of ` 311 Crore vide its order dated 15 June 2022 & 07 September 2022 respectively. Based on the opinion of external counsel, the Group believes that it has strong grounds of a successful appeal, and the chances of an outcome which is not in favor of the Group is remote. c) 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 Group Limited ('Malco') and the Group (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 Group. The said petitions are currently pending for hearing. d) Flue-gas desulfurization (FGD) implementation: The 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 istobemodifiedornewequipmenthavetobeinstalled.Timelinesforcompliancetotherevisednormforvarious plants in the Group range from December 2024 to December 2026. Different power plants are at different stages of the implementation process. TSPLfiledapetitionbeforePunjabStateElectricityRegulatoryCommission(PSERC)forapprovalofMoEF&CC notificationaschangeinlawintermsofArticle13ofPPAon30June2017.PSERCvideitsorderdated21December 2018hasheldthatMoEF&CCnotificationisnotachangeinlawasitdoesnotimposeanynewrequirements.TSPLhad filedanappealbeforeHon’bleAppellateTribunalforElectricity(APTEL)challengingthesaidorderofPSERC.APTELhas pronounced the order dated 28 August 2020 in favour of TSPL allowing the cost pass through. PSPCLhasfiledanappealagainstthisorderintheSupremeCourt.Thematterwaslistedon03February2022wherein respondentsincludingTSPLhavebeendirectedtofilecounteraffidavitsinthematter.On09November2022,TSPLfiled itsCounterAffidavit.Thematterispendingforhearing. e) i) Pursuant to the Government of India’s policy of disinvestment, the Group 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 Group had two call options to purchase all the Government of India’s shares in HZL at fair market value.TheGroupexercisedthefirstcalloptionon29August2003andacquiredanadditional18.9%ofHZL’s issued share capital. The Group also acquired an additional 20% of the equity capital in HZL through an open 554 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS offer, increasing its shareholding to 64.9%. The second call option provides the Group the right to acquire the 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 Group 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,theGroupinvokedarbitrationwhichisintheearlystages.Thenextdateofhearingistobenotified. 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. In January 2016, the Supreme Court had directed status quo pertaining to disinvestment of Government of India’s residual shareholding inapublicinterestpetitionfiled. On 13 August 2020, the Supreme Court passed an order partially removing the status quo order in place and has allowed the arbitration proceedings to continue via its order passed on 18 November 2021, the Supreme Court of India allowed the GOI’s proposal to divest its entire stake in HZL in the open market in accordance with the rules and regulations of SEBI and also directed the Central Bureau of India to register a regular case in relation to the process followed for the disinvestment of HZL in the year 2002 by the GOI. In line with the said order, the Group has withdrawn its arbitration proceedings. ii) Pursuant to the Government of India’s policy of divestment, the Group in March 2001 acquired 51% equity interest in BALCO from the Government of India. Under the terms of the SHA, the Group had a call option to purchase the Government of India’s remaining ownership interest in BALCO at any point from 02 March 2004. The Group exercised this option on 19 March 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 andvoid.InthearbitrationfiledbytheGroup,thearbitraltribunalbyamajorityawardrejectedtheclaimsofthe Grouponthegroundthattheclausesrelatingtothecalloption,therightoffirstrefusal,the“tagalong”rightsand the restriction on the transfer of shares violate the erstwhile Companies Act, 1956 and are not enforceable. The Group 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 GovernmentofIndiaalsofiledanapplicationbeforetheHighCourttopartiallysetasidethearbitralaward in respect of certain matters involving valuation. The matter is currently scheduled for hearing at 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 09 January 2012, the Group 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 the Group 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 Group considers the strike price of the options to be at the fair value, which is effectively nil,andhencethecalloptionshavenotbeenrecognizedinthefinancialstatements. iii) During the year, BALCO has paid remuneration to an erstwhile whole-time director (ceased to be a whole-time director with effect from 15 February 2023) for the year ended 31 March 2023, which is in excess of the limits applicable under section 197 of the Companies Act, 2013 (“Act”), read with Schedule V thereto, by ` 4 Crore. The waiver of recovery of excess remuneration has already been approved by Board of Directors of BALCO in their meeting held on 20 April 2023 and is subject to approval of BALCO shareholders (comprising the Company and the Government of India) in its ensuing Annual General Meeting ('AGM'). BALCO is in the process of obtaining such approval from its shareholders at its ensuing AGM in compliance of provisions of Section 197, Schedule V and other applicable provisions of the Act. 555 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Further, a whole-time director has been appointed by the Board of Directors of BALCO with effect from 15 February 2023. The terms and conditions of the appointment and remuneration of such whole-time director is approved by the Board of Directors of BALCO and is pending approval of the shareholders at its ensuing AGM as required under Sections 196 and 197 and Schedule V of the Act read with the rules thereunder and other applicable provisions of the Act. During the year ended 31 March 2023, a sum of ` 0 Crore was paid as remuneration to such whole-time director. f) On 26 October 2018, the Government of India (GoI), acting through the Directorate General of Hydrocarbons (DGH) granted its approval for a ten-year extension of the Production Sharing Contract (PSC) for the Rajasthan Block (RJ), witheffectfrom15May2020subjecttocertainconditionsandpayadditional10%profitpetroleum. Pendingthe outcomeofarbitrationandpetitionfiledwithSupremeCourtonapplicabilityofpolicy,MoPNGvideletterdated21 October 2022 has conveyed the grant of approval of extension of PSC for 10 years from 15 May 2020 to 14 May 2030 and the PSC addendum has been executed by the parties on 27 October 2022. DGH, in September 2022, has trued up the earlier demand raised till 31 March 2018 upto 14 May 2020 for Government’s additionalshareofProfitoilbasedonitscomputationofdisallowanceofcostincurredoverretrospectivere- allocation of certain common costs between Development Areas (DAs) of Rajasthan Block and certain other matters aggregatingto ` 9,545 Crore (US$ 1,162 million) applicable interest thereon representing share of Vedanta Limited and its subsidiary. TheGrouphasdisputedtheaforesaiddemandandtheotherauditexceptions,notifiedtilldate,asintheGroup’sview the audit notings are not in accordance with the PSC and are entirely unsustainable. Further, as per PSC provisions, disputed notings do not prevail and accordingly do not result in creation of any liability. The Group believes it has reasonable grounds to defend itself which are supported by independent legal opinions. In accordance with PSC terms, theGrouphadcommencedarbitrationproceedings.ThefinalhearingandargumentswereconcludedinSeptember 2022.Posthearingbriefswasfiledbyboththepartiesandawardisawaited. For reasons aforesaid, the Group is not expecting any material liability to devolve on account of these matters. 42 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 Vedanta Resources Limited (VRL) Finsider International Company Limited# Richter Holdings Limited# Twin Star Holdings Limited# Vedanta Resources Cyprus Limited# Vedanta Resources Finance Limited# Vedanta Resources Holdings Limited# B) Fellow subsidiaries (with whom transactions have taken place) Sterlite Iron and Steel Company Limited Sterlite Power Transmission limited Sterlite Technologies Limited Sterlite Power Grid Ventures Limited STL Digital Limited Sterlite Grid 16 Limited Twin Star Technologies Limited 556 Welter Trading Limited# Westglobe Limited# Vedanta Holdings Mauritius II Limited# Vedanta Holdings Mauritius Limited# Vedanta Holdings Jersey Limited# Vedanta Netherlands Investments BV# Vedanta UK Investments Limited# NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS C) Associate of ultimate parent (with whom transactions have taken place) Serentica Renewables India 1 Private Limited* Serentica Renewables India 3 Private Limited* Serentica Renewables India 4 Private Limited* Serentica Renewables India 9 Private Limited* Serentica Renewables India 5 Private Limited* Serentica Renewables India 6 Private Limited* Serentica Renewables India 7 Private Limited* D) Post retirement benefit plans 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 FACOR Employees Gratuity Scheme E) Associates and Joint Ventures (with whom transactions have taken place) RoshSkor Township (Pty) Limited Gaurav Overseas Private Limited Goa Maritime Private Limited Madanpur South Coal Company Limited Gergarub Exploration and Mining (Pty) Limited F) Others (with whom transactions have taken place) Enterprises over which key management personnel/their relatives have control or significant influence Anil Agarwal Foundation Trust Cairn Foundation Caitlyn India Private Limited Fujairah Gold Ghana Fujairah Metals LLC Janhit Electoral Trust Voorspoed Trust Minova Runaya Private Limited RunayaRefiningLLP Sesa Community Development Foundation Vedanta Foundation Vedanta Limited ESOS Trust Vedanta Medical Research Foundation # * These entities are subsidiary companies of VRL and VRL through its subsidiaries holds 68.11% in the Company. During the current year, due to change in shareholding of the intermediate holding company of Serentica group companies, the relationship of Vedanta group with these companies has changed from fellow subsidiaries to associates of Volcan. 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 % ofthevotingrightsofVRL.Volcanis100%beneficiallyownedandcontrolledbytheAnilAgarwalDiscretionaryTrust (‘Trust’). Volcan Investments Limited, Volcan Investments Cyprus Limited and other intermediate holding companies exceptVRLdonotproduceGroupfinancialstatements. 557 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED G) A summary of significant related party transactions for the year ended 31 March 2023 are noted below. Transactions and balances with own subsidiaries are eliminated on consolidation. Particulars Income: (i) Revenue from operations (ii) Other income a) Interest and guarantee commission b) Outsourcing service fees c) Dividend income d) Miscellaneous income Expenditure and other transactions: (i) (ii) Purchase of goods/ services Stock options (recovery) (ii) Management and brand fees J (iii) Reimbursement for other expenses (net of recovery) (iv) Corporate social responsibility expenditure/ Donation (v) Contributiontopostretirementemployeebenefittrust/fund (vi) Remuneration to relatives of key management personnel (vii) Purchaseoffixedassets (viii) Commission/sitting fees - To Non executive directors - To key management personnel - To relatives of key management personnel (ix) Dividend paid - To holding companies - To key management personnel and their relatives - To Non executive directors and their relatives (x) Interest and guarantee commission expense N Other Transactions during the year: Loans given/ (repayment thereof) L Financial guarantees relinquished during the year (i) (ii) (iii) Investment purchased during the year (refer note 40) Balances as at period end: (i) (ii) Trade receivables Loan given L, K (iii) Other receivables and advances (including brand fee prepaid) J, N (iv) Trade payables (v) Other payables (including brand fee payable) J (vi) Bank guarantee given I (vii) Sitting fee, remuneration, commission and consultancy fees payable to KMP and their relatives (viii) Dividend payable - To Holding companies - To key management personnel and their relatives - To Non executive directors and their relatives 558 Entities controlling the Company/ Fellow subsidiaries Associates/ Joint ventures 1,831 420 5 0 - 13 - 2,082 (2) - - - (19) - - - 26,171 - - 177 (2,408) - - 11 3,749 1,664 29 270 115 - 4,887 - - - - - - - 4 - - - - - - - - - - - - - - 5 - 1 - 9 9 0 - - - - - - (` in Crore) Others Total 56 1,887 - - - 1 283 - - (1) 77 78 20 - 5 0 1 - 2 0 - - (0) 249 - - 33 31 44 - 7 0 1 0 420 5 0 1 300 - 2,082 (3) 77 78 20 (19) 5 0 1 26,171 2 0 177 (2,403) (0) 250 11 3,758 1,706 60 314 115 7 4,887 1 0 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS Remuneration of key management personnel Particulars Short-termemployeebenefits Postemploymentbenefits* Share based payments (` in Crore) For the year ended 31 March 2023 36 1 4 41 *Doesnotincludetheprovisionmadeforgratuityandleavebenefits,astheyaredeterminedonanactuarialbasisforallthe employees together. H) A summary of significant related party transactions for the year ended 31 March 2022 are noted below. Transactions and balances with own subsidiaries are eliminated on consolidation. Particulars Income : (i) Revenue from operations (ii) Other income a) b) c) Interest and guarantee commission Outsourcing service fees Dividend income d) Miscellaneous income Expenditure and other transactions: (i) (ii) Purchase of goods/ services Stock options (recovery) (ii) Management and brand fees J (iii) Reimbursement for other expenses (net of recovery) (iv) Corporate social responsibility expenditure/ Donation (v) Contributiontopostretirementemployeebenefittrust/fund (vi) Remuneration to relatives of key management personnel (vii) Commission/sitting fees - To Non executive directors - To key management personnel - To relatives of key management personnel (viii) Dividend paid - To holding companies - To key management personnel - To relatives of key management personnel (ix) Interest and guarantee commission expense N Other Transactions during the year: Loans given/ (repayment thereof) L Financial guarantees relinquished during the year (i) (ii) (iii) Investment purchased/ (redeemed) during the year (iv) Loan taken/ (repayment thereof) Balances as at period end: (i) (ii) Trade receivables Loan given L,K Entities controlling the Company/ Fellow subsidiaries Associates/ Joint ventures 1,395 721 4 1 - 75 - 1,617 13 - - - - - - 11,346 - - 147 (1,623) 1 - (0) 13 5,457 - - - - - - - - - - - - - - - - - - - - - 0 - - 5 (` in Crore) Others Total 59 1,454 - - - 1 165 - - 0 45 114 23 4 2 0 - 0 1 - - 4 - - 5 - 721 4 1 1 240 - 1,617 13 45 114 23 4 2 0 11,346 0 1 147 (1,623) 5 0 (0) 18 5,462 559 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED Particulars (iii) Other receivables and advances (including brand fee prepaid) J,N (iv) Trade payables (v) Other payables (including brand fee payable) J (vi) Financial guarantee given (vii) Bank guarantee given I (viii) Sitting fee, remuneration, commission and consultancy fees payable to KMP and their relatives Remuneration of key management personnel Entities controlling the Company/ Fellow subsidiaries Associates/ Joint ventures 294 67 168 - 115 - 10 - - - - - Particulars Short-termemployeebenefits Postemploymentbenefits* Share based payments (` in Crore) Others Total 2 31 38 0 - 8 306 98 206 0 115 8 (` in Crore) For the year ended 31 March 2022 34 1 1 36 *Doesnotincludetheprovisionmadeforgratuityandleavebenefits,astheyaredeterminedonanactuarialbasisforallthe employees together. I) J) 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. The Group has a Brand license and strategic service fee agreement (“the Agreement”) with Vedanta Resources Ltd ("VRL") for the use of brand ‘Vedanta’ and providing strategic services which envisaged payment to VRL ranging from 0.75%-2% of turnover of the Company and certain subsidiaries. During the previous year, the Agreement was extended forafurtherperiodoffifteenyears.TheGrouphasrecordedanexpenseof` 1,718 Crore (31 March 2022: ` 1,553 Crore) for the year ended 31 March 2023. Further, during the current year, based on updated benchmarking analysis conducted by independent experts, the brand license and strategic service fee has been re-negotiated at 3% of the turnover of the Company with effect from 01 April 2023, while the previous rates remain unchanged for the subsidiaries. The Group generally pays such fee in advance, at the beginning of the year based on estimated annual turnover. Furthermore, during the current year, the Company executed a sub-licensing agreement for its existing Agreement with VRL consequent to which it has sub-licensed the brand and strategic services to its subsidiary Hindustan Zinc Limited (”HZL”) with effect from 01 October 2022. Based on independent benchmarking analysis, the Group has agreed a net sub-licensing fee of 1.70% of HZL’s annual consolidated turnover with VRL, resulting in an expense of ` 270 Crore for the year ended 31 March 2023. K) During the current year ended 31 March 2023, the Group has renewed loan provided to Sterlite Iron and Steel Company Limited for a further period of 12 months. The loan balance as at 31 March 2023 is ` 5 Crore (31 March 2022: ` 5 Crore). The loan is unsecured in nature and carries an interest rate of 11.13% per annum. 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 unsecured loan at an interest rate of 2.1% per annum. The loan balance of the loan as at 31 March 2023 is ` 82 Crore (US $10 million) (31 March 2022: ` 74 Crore (US $10 million)). These loans including accrued interest thereon have been fully provided for in the books of accounts. 560 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS L) During the year ended 31 March 2021, as part of its cash management activities, the overseas subsidiaries of the Company extended certain loans and guarantee facilities to Vedanta Resources Limited (“VRL”) and its subsidiaries (collectively “the VRL group”). During the previous year, the overseas subsidiaries of the Company, executed agreements with Twin Star Holdings Limited, "TSH", to novate ` 2,408 Crore (US$ 300 million) due for repayment in June 2022 to another subsidiary of VRL, which is guaranteed by VRL, at an interest rate of 10.1% pursuant to novation. The said loan has been fully repaid during the current year. As of 31 March 2023, loans having contractual value of ` 3,689 Crore (US$ 449 million) (31 March 2022: ` 5,661 Crore (US$ 749 million)) were outstanding from the VRL group at an interest rate of 9.6%. M) N) During the current year ended 31 March 2023, the Group executed an agency contract with VRL pursuant to which, the Group procured calcined alumina amounting to ` 735 Crore on which an agency commission of ` 4 Crore was paid to VRL. VedantaResourcesLimited(“VRL”),asaparentcompany,hasprovidedfinancialandperformanceguaranteetothe Government of India for erstwhile Cairn India group’s (“Cairn”) obligations under the Production Sharing Contract (‘PSC’)providedforonshoreblockRJ-ON-90/1,formakingavailablefinancialresourcesequivalenttoCairn’ssharefor its obligations under the PSC, personnel and technical services in accordance with industry practices and any other resourcesincaseCairnisunabletofulfilitsobligationsunderthePSC. Similarly,VRLhasalsoprovidedfinancialandperformanceguaranteetotheGovernmentofIndiafortheGroup’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. As a consideration for the guarantee with respect to the PSC, the Group pays an annual charge of 1.2% of net exploration and development spend, subject to a minimum annual fee of ` 41 Crore (US$ 5 million), in ratio of participating interests held equally by the Company and its step-down subsidiary, Cairn Energy Hydrocarbons Ltd (“CEHL”). As regards the RSC, the Group paid a one-time charge of ` 183 Crore (US$ 25 million), i.e., 2.5% of the total estimated cost of initial exploration phase of approximately ` 7,330 Crore (US$ 1 billion), in the year ended 31 March 2021, and pays an annual charge of 1% of spend, subject to a minimum fee of ` 80 Crore (US$ 10 million) and maximum fee of ` 160 Crore (US$ 20 million) per annum. Accordingly, the Group has recorded a guarantee commission expense of ` 177 Crore (US$ 23 million) (31 March 2022: ` 147 Crore (US$ 20 million)) for the period ended 31 March 2023 and ` 75 Crore (US$ 9 million) (31 March 2022: ` 126 Crore (US$ 17 million) is outstanding as a pre-payment as at 31 March 2023. O) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Group to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries") with theunderstanding,whetherrecordedinwritingorotherwise,thattheIntermediaryshalllendorinvestinpartyidentified byoronbehalfoftheGroup(UltimateBeneficiaries).TheGrouphasnotreceivedanyfundfromanyparty(s)(Funding Party) with the understanding that the Group shall whether, directly or indirectly lend or invest in other persons or entitiesidentifiedbyoronbehalfoftheGroup(UltimateBeneficiaries)orprovideanyguarantee,securityorthelikeon behalfoftheUltimateBeneficiaries. 561 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 43 Interest in other entities a) Subsidiaries 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. Subsidiaries Principal activities Country of Incorporation Immediate holding company Copper Mining Australia Monte Cello BV Copper Mining Australia Monte Cello BV 100.00 100.00 S. No 1 2 3 4 5 6 7 8 9 10 Copper Mines of Tasmania Pty Limited ("CMT") Thalanga Copper Mines Pty Limited ("TCM") Athena Chattisgarh Power Limited (a) Bharat Aluminium Company Limited ("BALCO") Desai Cement Company Private Limited ESL Steel Limited FACOR Power Ltd (Refer Note 4(b)) Facor Realty and Infrastructure Limited (b) Ferro Alloy Corporation Limited ("FACOR") (Refer Note 4(b)) Goa Sea Port Private Limited 2 11 Hindustan Zinc Alloys Private Limited 12 Hindustan Zinc Fertilizers Private Limited (c) 13 Hindustan Zinc Limited ("HZL") 14 MALCO Energy Limited ("MEL") Power Generation Aluminium mining and smelting Cement Manufacturing of Steel & DI Pipe Power generation Real estate Manufacturing of Ferro Alloys and Mining and generation of power Infrastructure Manufacturing of metals and its alloys Manufacturing of phosphatic fertilisers Exploring, extracting, processing of minerals and manufacturing of metals Power Generation 15 Maritime Ventures Private Infrastructure Limited 2 Paradip Multi Cargo Berth Private Limited 2 Sesa Mining Corporation Limited 2 Sesa Resources Limited ("SRL") Sterlite Ports Limited 2 Infrastructure Iron ore mining Iron ore mining Infrastructure Talwandi Sabo Power Limited ("TSPL") Vedanta Zinc Football & Sports Foundation Vizag General Cargo Berth Private Limited Zinc India Foundation (d) Power Generation Sports Foundation Infrastructure CSR Activities 16 17 18 19 20 21 22 23 India India India India India India India India India India India India India India India India India India India India India 24 AvanStrate Inc. (''ASI'') Manufacturing of LCD Glass Substrate 25 Cairn India Holdings Limited Investment company Japan Jersey 562 The Company's / Immediate holding company's percentage holding (in %) As at 31 March 2023 100.00 As at 31 March 2022 100.00 Vedanta Limited N/A - Vedanta Limited 51.00 51.00 Sesa Mining Corporation Limited Vedanta Limited Ferro Alloy Corporation Limited ("FACOR") FACOR 100.00 100.00 95.49 - - 95.49 90.00 100.00 Vedanta Limited 99.99 100.00 Sterlite Ports Limited 100.00 100.00 Hindustan Zinc Limited Hindustan Zinc Limited Vedanta Limited 100.00 100.00 100.00 - 64.92 64.92 Vedanta Limited 100.00 100.00 Sterlite Ports Limited Sesa Resources Limited Sesa Resources Limited Vedanta Limited Sesa Resources Limited Vedanta Limited Hindustan Zinc Limited Vedanta Limited Hindustan Zinc Limited Cairn India Holdings Limited Vedanta Limited 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 - 51.63 51.63 100.00 100.00 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS S. No Subsidiaries Principal activities Country of Incorporation Immediate holding company The Company's / Immediate holding company's percentage holding (in %) As at 31 March 2023 As at 31 March 2022 100.00 100.00 Taiwan ASI 26 AvanStrate Taiwan Inc 27 Western Cluster Limited 28 Bloom Fountain Limited 29 30 CIG Mauritius Holdings Private Limited (e) CIG Mauritius Private Limited (e) 31 THL Zinc Ltd 32 33 THL Zinc Ventures Limited Amica Guesthouse (Proprietary) Limited 34 Namzinc (Proprietary) Limited Skorpion Mining Company (Proprietary) Limited ('NZ') Skorpion Zinc (Proprietary) Limited (''SZPL'') THL Zinc Namibia Holdings (Proprietary) Limited (“VNHL”) Killoran Lisheen Mining Limited Lisheen Milling Limited 35 36 37 38 39 Manufacturing of LCD Glass Substrate Iron ore mining Operating (Iron ore) and Investment Company Investment Company Investment Holding Company and to provide services and resources relevant to oil & gas exploration, production and development Investment Company Investment Company Accommodation and catering services Owns and operates a zinc refinery Exploration, development, treatment, production and sale of zinc ore Operating (zinc) and investing company Liberia Mauritius Mauritius Mauritius Mauritius Mauritius Namibia Namibia Namibia Namibia Mining and Exploration and Investment company Namibia Development of a zinc/lead mine Manufacturing (f) 40 Lisheen Mine Partnership Development and operation of a zinc/lead mine 41 42 43 44 Vedanta Lisheen Mining Limited Cairn Energy Gujarat Block 1 Limited (g) Cairn Energy Hydrocarbons Limited Black Mountain Mining (Proprietary) Limited Zinc and lead mining 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 Republic of Ireland Republic of Ireland Republic of Ireland Republic of Ireland Scotland Scotland (h) Bloom Fountain Limited Vedanta Limited 100.00 100.00 100.00 100.00 Cairn Energy Hydrocarbons Ltd. CIG Mauritius Holding Private Ltd. - - 100.00 100.00 THL Zinc Ventures Limited Vedanta Limited Skorpion Zinc (Proprietary) Limited Skorpion Zinc (Proprietary) Limited Skorpion Zinc (Proprietary) Limited THL Zinc Namibia Holdings (Proprietary) Ltd THL Zinc Ltd Vedanta Lisheen Holdings Limited Vedanta Lisheen Holdings Limited 50% each held by Killoran Lisheen Mining Limited and Vedanta Lisheen Mining Limited Vedanta Lisheen Holdings Limited Cairn India Holdings Limited Cairn India Holdings Limited 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 South Africa THL Zinc Ltd 74.00 74.00 45 Cairn Lanka Private Limited Oil and gas exploration, Sri Lanka 46 AvanStrate Korea Inc 47 Lakomasko BV (i) development and production Manufacturing of LCD Glass Substrate Investment company 48 Monte Cello BV (“MCBV”) Holding company Korea The Netherlands The Netherlands Cairn Energy Hydrocarbons Limited ASI 100.00 100.00 100.00 100.00 THL Zinc Holding BV - 100.00 Vedanta Limited 100.00 100.00 563 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED S. No Subsidiaries Principal activities Country of Incorporation Immediate holding company The Company's / Immediate holding company's percentage holding (in %) As at 31 March 2023 As at 31 March 2022 49 THL Zinc Holding BV Investment company 50 51 Vedanta Lisheen Holdings Limited Fujairah Gold FZC Investment company Manufacturing of Copper RodandRefiningofPrecious Metals (Gold & Silver) The Netherlands The Netherlands United Arab Emirates Vedanta Limited 100.00 100.00 THL Zinc Holding BV 100.00 100.00 Malco Energy Limited 100.00 100.00 (a) Acquired on 21 July 2022 under the liquidation proceedings of the Insolvency and Bankruptcy Code, 2016, subject to National Company Law Tribunal (“NCLT”) approval which is pending as on the balance sheet date (refer note 4) Struck off on 13 January 2023 Incorporated on 07 September 2022 Incorporated on 05 August 2022 Dissolved on 01 March 2023 Activity of the company ceased in February 2016 Deregistered effective from 05 July 2022 (b) (c) (d) (e) (f) (g) (h) Principal place of business in India Liquidated on 03 March 2023. (i) 1 2 TheGroupalsohasinterestincertaintrustswhichareneithersignificantnormaterialtotheGroup. The Mumbai NCLT and Chennai NCLT has passed orders dated 06 June 2022 and 22 March 2023 respectively sanctioning the scheme of amalgamation of Sterlite Ports Limited ('SPL'), Paradip Multi Cargo Berth Private Limited ('PMCB'), Maritime Ventures Private Limited ('MVPL'), Goa Sea Port Private Limited ('GSPL'), wholly owned subsidiaries/step down subsidiaries of Sesa ResourcesLimited('SRL'),withSesaMiningCorporationLimited('SMCL').StatutoryfilingwithMCAisinprogress. b) Joint operations 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 Area 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 Krishna Godavari Cambay Offshore Cambay Offshore Rajasthan Onshore Rajasthan Onshore Krishna Godavari Offshore (%) Participating Interest As at 31 March 2023 As at 31 March 2022 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 c) Interest in associates and joint ventures Set out below are the associates and joint ventures of the Group as at 31 March 2023 and 31 March 2022 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 and Jointly controlled entities Country of incorporation Gaurav Overseas Private Limited Madanpur South Coal Company Limited Goa Maritime Private Limited Rosh Pinah Health Care (Proprietary) Limited Gergarub Exploration and Mining (Pty) Limited RoshSkor Township (Pty) Limited India India India Namibia Namibia Namibia % Ownership interest As at 31 March 2023 50.00 17.62 50.00 69.00 51.00 50.00 As at 31 March 2022 50.00 17.62 50.00 69.00 51.00 50.00 S. No. 1 2 3 4 5 6 564 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 44 Oil & gas reserves and resources TheGroup'sgrossreserveestimatesareupdatedatleastannuallybasedontheforecastofproductionprofiles,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 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: Gross proved and probable hydrocarbons initially in place Gross proved and probable reserves and resources Net working interest proved and probable reserves and resources Particulars Country (mmboe) (mmboe) (mmboe) As at 31 March 2023 As at 31 March 2022 As at 31 March 2023 As at 31 March 2022 As at 31 March 2023 As at 31 March 2022 Rajasthan Block Ravva PKGM-1 CB-OS/2 Fields KG-ONN-2003/1 KG-OSN-2009/3 DSF OALP Total India India India India India India India 4,806 5,910 933 1,006 653 704 298 260 32 30 530 6,660 704 298 260 32 4 530 7,738 18 22 32 4 86 60 23 25 32 4 2 60 4 9 16 4 86 60 1,155 1,152 832 704 5 10 16 4 2 60 801 The Group’s net working interest proved and probable reserves is as follows: Particulars Reserves as of 01 April 2021* Revisions/ Additions during the year Production during the year Reserves as of 31 March 2022** Revisions/ Additions during the year Production during the year Reserves as of 31 March 2023*** Proved and probable reserves Proved and probable reserves (developed) Oil (mmstb) 261 (19) (32) 210 (15) (28) 167 Gas (bscf) 259 (34) (36) 189 (3) (34) 152 Oil (mmstb) 162 5 (32) 135 14 (28) 121 Gas (bscf) 166 (9) (36) 121 18 (34) 105 * 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) ** Includes probable oil reserves of 78.48 mmstb (of which 18.15 mmstb is developed) and probable gas reserves of 75.98 bscf (of which 26.30 bscf is developed) *** Includes probable oil reserves of 55.68 mmstb (of which 18.99 mmstb is developed) and probable gas reserves of 46.91 bscf (of which 16.91 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 565 NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) 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 ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) 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 5 7 7 7 2 , % 5 2 0 4 2 . 9 1 4 % 5 4 2 4 . 6 5 3 7 2 , % 1 7 8 5 2 . 2 1 8 7 6 , % 1 0 2 7 1 . 5 7 ) 1 7 2 ( ) 0 7 ( 6 7 3 3 0 1 - 1 3 0 6 5 0 1 , - - - 4 ) 1 6 5 ( 0 6 2 - - ) 5 ( ) 1 ( ) 1 ( 0 ) 3 ( ) 5 8 ( ) 2 ( % 4 3 1 9 . % 5 6 0 . ) % 5 3 2 ( . ) % 1 6 0 ( . % 5 2 3 . % 9 8 0 . % 0 0 0 . % 7 2 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 3 0 0 . ) % 5 8 4 ( . % 5 2 2 . % 0 0 0 . % 0 0 0 . ) % 4 0 0 ( . ) % 1 0 0 ( . ) % 1 0 0 ( . % 0 0 0 . ) % 3 0 0 ( . ) % 4 7 0 ( . ) % 2 0 0 ( . 1 4 3 3 ) 4 ( - - 2 - 0 - - - - ) 3 ( ) 1 ( - - ) 1 ( - - - - - - % 8 1 4 . % 2 3 3 . ) % 3 4 0 ( . % 0 0 0 . % 0 0 0 . % 6 1 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 0 3 0 ( . ) % 0 1 0 ( . % 0 0 0 . % 0 0 0 . ) % 0 1 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . 2 4 ) 7 6 2 ( ) 0 7 ( 6 7 3 1 0 1 - 1 3 9 1 5 0 1 , - - - 4 ) 8 5 5 ( 1 6 2 - - ) 4 ( ) 1 ( ) 1 ( 0 ) 3 ( ) 5 8 ( ) 2 ( % 8 4 9 9 . % 0 4 0 . ) % 3 5 2 ( . ) % 6 6 0 ( . % 6 5 3 . % 6 9 0 . % 0 0 0 . % 9 2 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 4 0 0 . ) % 8 2 5 ( . % 7 4 2 . % 0 0 0 . % 0 0 0 . ) % 4 0 0 ( . ) % 1 0 0 ( . ) % 1 0 0 ( . % 0 0 0 . ) % 3 0 0 ( . ) % 0 8 0 ( . ) % 2 0 0 ( . 2 4 9 2 1 , 8 4 7 7 , 0 2 8 2 4 0 2 0 3 , - 6 1 0 2 - - - 1 5 5 6 5 7 6 5 5 , - - ) 0 1 ( 0 0 0 ) 3 ( ) 4 4 6 ( 8 4 % 3 8 2 3 . % 5 6 9 1 . % 5 0 0 . % 6 6 7 . % 9 0 1 . % 4 0 0 . % 0 0 0 . % 5 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 3 1 0 . % 2 1 4 1 . % 3 4 1 . % 0 0 0 . % 0 0 0 . ) % 3 0 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 1 0 0 ( . ) % 3 6 1 ( . % 2 1 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 i V ) 1 ( d e t i i m L s t r o P e t i l r e t S ) 1 ( 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 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 ) 1 ( d e t i m L i ) 1 ( 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 m L i l e e t S L S E ) 1 ( 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 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 l i i d e t i i i m L c n Z n a t s u d n H i ) 2 ( ) 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 ) a ( 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 d e t i i m L e t a v i r P y n a p m o C t n e m e C i a s e D ) 2 ( d t L r e w o P R O C A F d e t i i m L e t a v i r P s y o l l i A c n Z n a t s u d n H i s t r o p S & l l i a b t o o F c n Z a t n a d e V n o i t a d n u o F ) c ( d e t i i m L e t a v i r P s r e z i l i t r e F c n Z n a t s u d n H i i ) c ( n o i t a d n u o F a d n i I c n Z i 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 1 2 i s e i r a d i s b u S n g i e r o F y t i t n e e h t f o e m a N . S o N d e t i i m L a t n a d e V t n e r a P i s e i r a d i s b u S n a d n I 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 1 2 ) s e i t i l i b a i l t a s A 3 2 0 2 h c r a M 1 3 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 3 1 0 2 , t c A s e i n a p m o C e h t 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 i t a m r o f n i l a i c n a n F i 5 4 566 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 4 0 8 5 3 0 7 ) 3 5 ( ) 1 ( 5 4 5 ) 7 6 ( ) 1 2 ( ) 1 2 ( - ) 5 4 ( 4 2 7 9 0 1 5 - 8 2 1 1 , ) 2 5 ( 2 1 8 3 0 1 , - - - ) 6 1 3 ( ) 5 0 2 ( ) 9 8 ( % 3 0 0 . % 2 0 5 . % 8 0 6 . ) % 6 4 0 ( . ) % 1 0 0 ( . % 4 0 0 . % 7 4 0 . ) % 8 5 0 ( . ) % 8 1 0 ( . ) % 8 1 0 ( . ) % 9 3 0 ( . % 0 0 0 . % 6 7 9 . % 1 2 0 . % 6 0 0 . % 8 0 0 . % 9 0 0 . % 4 0 0 . % 0 0 0 . ) % 5 4 0 ( . % 8 9 8 . % 0 1 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 3 7 2 ( . ) % 7 7 1 ( . ) % 7 7 0 ( . - - - 1 - - - - - - - - 6 1 - - - - - - - - - - - - - - - t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) e r o r C n i ` ( I C O % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 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 . % 1 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 . f o % s A d e t a d i l o s n o c 4 0 8 5 3 0 7 ) 4 5 ( ) 1 ( 5 4 5 ) 7 6 ( ) 1 2 ( ) 1 2 ( - ) 5 4 ( 4 2 7 9 0 1 5 - 2 1 1 1 , ) 2 5 ( 2 1 8 3 0 1 , - - - ) 6 1 3 ( ) 5 0 2 ( ) 9 8 ( % 4 0 0 . % 9 4 5 . % 5 6 6 . ) % 1 5 0 ( . ) % 1 0 0 ( . % 5 0 0 . % 1 5 0 . ) % 3 6 0 ( . ) 5 1 3 ( ) 1 1 7 ( ) 2 7 0 4 ( , ) 6 4 3 3 ( , ) 1 3 6 2 ( , 7 0 1 1 , ) % 0 2 0 ( . 9 ) % 0 2 0 ( . ) % 3 4 0 ( . % 0 0 0 . % 2 5 0 1 . % 3 2 0 . % 7 0 0 . % 9 0 0 . % 9 0 0 . % 5 0 0 . % 0 0 0 . ) % 9 4 0 ( . % 2 8 9 . % 1 1 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 9 9 2 ( . ) % 4 9 1 ( . ) % 4 8 0 ( . ) 0 4 4 1 ( , 2 5 9 5 6 2 7 3 , 4 0 2 9 7 5 2 - 0 0 1 0 5 1 9 2 4 8 , 7 5 9 3 , - - - - ) 7 8 2 2 ( , ) 3 4 1 2 ( , 8 9 4 2 , ) % 0 8 0 ( . ) % 0 8 1 ( . ) % 3 3 0 1 ( . ) % 9 4 8 ( . ) % 7 6 6 ( . % 1 8 2 . % 2 0 0 . ) % 5 6 3 ( . % 1 5 1 . % 1 0 0 . % 5 4 9 . % 2 5 0 . % 0 2 0 . % 6 0 0 . % 5 2 0 . % 8 3 0 . % 0 0 0 . % 8 3 1 2 . % 4 0 0 1 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 0 8 5 ( . ) % 4 4 5 ( . % 4 3 6 . l i ) 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 ) 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 ) y r a t e i r p o r P ( c n i z m a N d e t i m L 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 m L 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 i i 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 l i d e t i m L i d e t i i i l 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 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 ) e t a v i r P ( a k n a L n r i a C d e t i i i m L s g n d o H a d n l i I n r i a C 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 g n i l l i M n e e h s L i ) d ( V B o k s a m o k a L ) e ( d e t i i i l 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 ) e ( 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 i m L g n n M n e e h s L n a r o i l l i K 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 ) f ( d e t i i l m L 1 k c o B t a r a u G y g r e n E n r i a C j c n I i n a w a T e t a r t S n a v A c n I a e r o K 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 s e r u t n e V c n Z L H T i 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 i l V B g n d o H c n Z L H T i d e t i i l m L r e t s u C n r e t s e W 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 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 0 3 567 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 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 ) s e i t i l i b a i l t a s A 3 2 0 2 h c r a M 1 3 y t i t n e e h t f o e m a N . S o N t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) 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 1 2 % 5 5 0 . ) 6 1 2 0 1 ( , ) % 1 9 5 2 ( . d e t i i i m L n a t n u o F m o o B l V B o l l e C e t n o M NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 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 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 d e d n e r a e Y 3 2 0 2 h c r a M 1 3 ) 3 6 8 3 ( , ) % 1 4 3 3 ( . 6 6 t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) e r o r C n i ` ( I C O % 9 6 6 . f o % s A d e t a d i l o s n o c ) 9 2 9 3 ( , ) % 6 1 7 3 ( . ) 4 0 0 0 1 ( , t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) e r o r C n i ` ( ) % 8 3 5 2 ( . 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 ) s e i t i l i b a i l t a s A 3 2 0 2 h c r a M 1 3 ) 1 ( 4 0 ) 1 ( - ) 1 ( ) 2 7 4 5 2 ( , 1 6 5 1 1 , ) % 1 0 0 ( . ) 1 ( % 3 0 0 . % 0 0 0 . ) % 1 0 0 ( . % 0 0 0 . % 0 0 . 0 0 1 ) % 1 0 0 ( . ) . % 2 3 0 2 2 ( - - - - - 9 1 4 7 8 9 ) % 5 0 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 7 4 2 4 . % 0 0 . 0 0 1 ) 0 ( 4 0 ) 1 ( - ) 1 ( ) 1 9 8 5 2 ( , 4 7 5 0 1 , ) % 0 0 0 ( . % 3 0 0 . % 0 0 0 . ) % 1 0 0 ( . % 0 0 0 . ) % 1 0 0 ( . 1 5 0 4 0 2 % 0 0 0 . % 1 0 0 . % 0 0 0 . % 1 0 0 . % 0 0 0 . % 0 0 0 . n w o d p e t s / s e i r a d s b u s i i d e n w o y l l o h w , ) L P S G ( d e t i m L i e t a v i r P t r o P a e S a o G , ) L P V M ( d e t i m L i e t a v i r P s e r u t n e V e m i t i r a M , ) B C M P ( d e t i m L i 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 , ) L P S ( d e t i m L i s t r o P e t i l r e t S f o n o i t a m a g a m a l f o e m e h c s i e h t g n n o i t c n a s y l e v i t c e p s e r 3 2 0 2 h c r a M 2 2 d n a 2 2 0 2 e n u J 6 0 d e t a d s r e d r o d e s s a p s a h T L C N i a n n e h C d n a T L C N i a b m u M e h T . s e c n e r e f f i d P A A G d n a s t n e m t s u d a n o i t a d j 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 t s u d a n o i t a d j i l o s n o C ) g ( . 1 . r a e y e h t g n i r u d d e r e t s g e r - e D i ) f ( r a e y e h t g n i r u d d e v l o s s D i ) e ( r a e y e h t g n i r u d d e t a d u q L i i ) d ( r a e y e h t g n i r u d d e t a r o p r o c n I ) c ( r a e y e h t g n i r u d d e r i u q c A ) b ( r a e y e h t g n i r u d f f o k c u r t S ) a ( . s s e r g o r p n i s i A C M h t i w g n i l fi y r o t u t a t S . ) L C M S ( 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 h t i i i w , ) L R S ( d e t i i m L s e c r u o s e R a s e S f o s e i r a d s b u s i i i e v i t c e f f e g n m o c e b n o i t a m a g a m a e h t l t s o P . y n a p m o C e h t i i f o y r a d s b u s a s i n r u t n i i h c h w R O C A F f o y r a d s b u s a s a w L P F i i . ) ” R O C A F “ ( d e t i i m L n o i t a r o p r o C s y o l l A o r r e F o t n i ) ” L P F “ ( d e t i l i m L r e w o P r o c a F f o n o i t a m a g a m A f o e m e h c S e h t d e v o r p p a 2 2 0 2 r e b m e v o N 5 1 d e t a d r e d r O s t i e d i v h c n e B k c a t t u C , l a n u b i r T w a L y n a p m o C l a n o i t a N e b n o H l ’ , r a e y t n e r r u c e h t g n i r u D . 2 . l i n o i t a m a g a m a s h t o t e u d p u o r G e h t f o s t n e m e t a t s l i a c n a n fi d e t a d i l o s n o c e h t n o t c a p m i l a i r e t a m o n s i e r e h T . R O C A F n i l . % 9 9 9 9 s d o h y l t c e r i d y n a p m o C e h t , 2 2 0 2 r e b m e v o N 1 2 n o . 7 7 7 3 9 5 0 ` = Y P J 1 , . 9 3 2 7 4 ` = R A Z 1 , . 0 2 0 5 4 ` = D A N 1 , . 7 1 5 8 1 2 ` = D E A 1 , . 4 2 7 2 0 8 ` = D S U 1 , . 8 2 3 9 4 5 ` = D U A 1 : 3 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 . 8 8 7 7 1 6 0 ` = Y P J 1 , . 6 7 1 6 4 ` = R A Z 1 , . 6 7 1 6 4 ` = D A N 1 , . 8 6 6 3 2 2 ` = D E A 1 , . 3 4 6 1 2 8 ` = D S U 1 , . 3 8 3 0 5 5 ` = D U A 1 : 3 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 % 0 0 . 0 0 1 ) . % 5 8 4 4 2 ( ) 3 0 1 2 4 ( , 3 2 4 9 3 , % 0 0 . 0 0 1 ) . % 0 8 6 0 1 ( ) g ( 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 y t i u q E r e p ( s e r u t n e v t n o J d n a s e t a i c o s s A i ) d o h t e m i n a 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 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 ) 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 m L i n g i e r o F i i ) 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 i d t L ) y t P ( p h s n w o T r o k S h s o R d e t i m L 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 1 2 3 1 2 3 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 y t i t n e e h t f o e m a N . S o N 568 i s e i r a d s b u s i NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 5 7 5 9 , 9 1 7 2 , 5 1 ) 2 2 1 ( 4 2 3 5 ) 0 ( ) 3 2 ( ) 0 ( - - 5 1 ) 8 9 ( 1 5 2 ) 0 ( ) 0 5 ( - - - ) 4 6 ( 2 0 1 3 ) 2 3 ( ) 9 3 2 ( - ) 2 ( ) 5 3 2 ( % 9 7 8 4 . % 6 8 3 1 . % 8 0 0 . ) % 2 6 0 ( . % 2 1 0 . % 7 2 0 . ) % 0 0 0 ( . ) % 2 1 0 ( . ) % 0 0 0 ( . % 8 0 0 . % 0 0 0 . % 0 0 0 . ) % 0 5 0 ( . % 8 2 1 . ) % 0 0 0 ( . ) % 6 2 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 3 3 0 ( . % 2 5 0 . % 2 0 0 . ) % 2 2 1 ( . ) % 6 1 0 ( . % 0 0 0 . ) % 0 2 1 ( . ) % 1 0 0 ( . ) 5 5 ( ) 7 1 ( ) 0 ( - - ) 1 ( - 0 - - - - ) 3 ( ) 2 ( - - - - - - - - - - - ) 3 ( - ) % 8 6 6 ( . ) % 1 0 2 ( . ) % 0 0 0 ( . % 0 0 0 . % 0 0 0 . ) % 2 1 0 ( . % 0 0 0 . % 2 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 6 3 0 ( . ) % 4 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 . ) % 6 3 0 ( . % 0 0 0 . 0 3 6 9 , 6 3 7 2 , 5 1 ) 2 2 1 ( 4 2 4 5 ) 0 ( ) 3 2 ( ) 0 ( - - 5 1 ) 5 9 ( 3 5 2 ) 0 ( ) 0 5 ( ) 3 ( - - ) 4 6 ( 2 0 1 3 ) 2 3 ( ) 9 3 2 ( - ) 2 ( ) 2 3 2 ( % 2 2 1 5 . % 5 5 4 1 . % 8 0 0 . ) % 5 6 0 ( . % 3 1 0 . % 9 2 0 . ) % 0 0 0 ( . ) % 2 1 0 ( . ) % 0 0 0 ( . % 8 0 0 . % 0 0 0 . % 0 0 0 . ) % 1 5 0 ( . % 5 3 1 . ) % 0 0 0 ( . ) % 7 2 0 ( . ) % 2 0 0 ( . % 0 0 0 . % 0 0 0 . ) % 4 3 0 ( . % 4 5 0 . % 2 0 0 . ) % 7 2 1 ( . ) % 7 1 0 ( . % 0 0 0 . ) % 3 2 1 ( . ) % 1 0 0 ( . 1 9 2 3 7 6 7 , 2 9 0 3 , 2 8 2 4 3 , 2 5 ) 0 1 1 ( ) 6 ( ) 1 1 ( ) 2 ( ) 3 ( 6 3 1 5 9 2 6 8 2 1 6 , - ) 5 1 7 ( - - 3 1 ) 5 0 6 ( 5 7 7 9 1 ) 1 5 9 ( ) 5 6 2 8 ( , - ) 4 0 6 ( ) 5 4 7 3 ( , % 3 4 2 5 . % 4 7 1 1 . % 5 4 0 . % 3 7 4 . % 8 0 0 . ) % 7 1 0 ( . ) % 1 0 0 ( . ) % 2 0 0 ( . ) % 0 0 0 ( . % 6 0 0 . ) % 0 0 0 ( . % 8 0 0 . % 7 3 9 . % 6 9 0 . % 0 0 0 . ) % 9 0 1 ( . % 2 0 0 . % 0 0 0 . % 0 0 0 . ) % 3 9 0 ( . % 1 1 0 . % 0 3 0 . ) % 4 6 2 1 ( . ) % 5 4 1 ( . % 0 0 0 . ) % 2 9 0 ( . ) % 3 7 5 ( . 8 7 5 7 1 , % 7 5 9 8 . 3 3 3 % 6 4 0 4 . 5 4 2 7 1 , % 2 7 1 9 . 9 4 6 7 7 , % 6 7 8 1 1 . t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) 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 ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) 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 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 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 ) s e i t i l i b a i l t a s A 2 2 0 2 h c r a M 1 3 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 i V ) 1 ( d e t i i m L s t r o P e t i l r e t S ) 1 ( 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 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 ) 1 ( d e t i m L i ) 1 ( 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 m L i l e e t S L S E ) 1 ( 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 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 ) 2 ( ) 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 ) a ( 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 ) b ( d e t i i m L e t a v i r P y n a p m o C t n e m e C i a s e D ) 2 ( d t L r e w o P R O C A F ) c ( d e t i i m L e t a v i r P s y o l l i A c n Z n a t s u d n H i s t r o p S & l l i a b t o o F c n Z a t n a d e V i s e i r a d i s b u S n g i e r o F ) c ( n o i t a d n u o F 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 m L s e r u t n e V c n Z L H T i ) d ( . 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 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 6 1 7 1 8 1 9 1 1 2 3 4 5 6 7 8 569 y t i t n e e h t f o e m a N . S o N d e t i i m L a t n a d e V t n e r a P i s e i r a d i s b u S n a d n I i NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 6 9 2 - 0 ) 9 ( ) 0 ( ) 4 1 ( 2 6 7 3 ) 1 ( 2 - ) 3 ( ) 2 ( ) 0 ( - 5 - - - - 9 0 9 9 0 7 ) 5 ( ) 9 6 ( ) 5 3 1 ( % 3 0 0 . % 5 1 0 . % 0 0 0 . % 0 0 0 . ) % 5 0 0 ( . ) % 7 0 0 ( . ) % 0 0 0 ( . % 8 8 3 . % 2 0 0 . ) % 1 0 0 ( . % 1 0 0 . % 0 0 0 . ) % 2 0 0 ( . ) % 1 0 0 ( . ) % 0 0 0 ( . % 0 0 0 . % 3 6 4 . % 1 6 3 . % 3 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 3 0 0 ( . ) % 9 6 0 ( . ) % 5 3 0 ( . - - - - - - - ) 3 1 ( - - - - - - - - - - - - - - - - - - t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) e r o r C n i ` ( I C O % 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 ) % 4 5 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 . 6 9 2 - 0 ) 9 ( ) 0 ( ) 4 1 ( 5 7 7 3 ) 1 ( 2 - ) 3 ( ) 2 ( ) 0 ( - 5 - - - - 9 0 9 9 0 7 ) 5 ( ) 9 6 ( ) 5 3 1 ( % 3 0 0 . % 5 1 0 . % 0 0 0 . % 0 0 0 . ) % 5 0 0 ( . ) % 7 0 0 ( . ) % 0 0 0 ( . % 2 1 4 . % 2 0 0 . ) % 1 0 0 ( . % 1 0 0 . % 0 0 0 . ) % 2 0 0 ( . ) % 1 0 0 ( . ) % 0 0 0 ( . % 0 0 0 . % 3 8 4 . % 7 7 3 . % 3 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 3 0 0 ( . ) % 2 7 0 ( . ) % 7 3 0 ( . ) 8 4 9 4 ( , ) % 1 2 5 2 ( . ) 0 4 ( ) % 6 8 4 ( . ) 8 0 9 4 ( , ) % 0 1 6 2 ( . d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 ) 3 8 0 3 ( , ) 1 7 4 2 ( , 6 4 6 0 1 ) 7 9 5 1 ( , 2 9 1 7 1 5 9 2 , 9 7 4 2 - 6 7 5 6 1 ) 1 ( - ) 1 2 ( 9 2 1 9 , 8 2 8 2 , ) 1 9 4 ( - - - - ) 8 6 9 1 ( , ) 8 3 9 1 ( , 2 0 6 2 , ) 1 2 3 7 1 ( , ) % 2 7 4 ( . ) % 8 7 3 ( . % 9 9 0 . % 2 0 0 . ) % 4 4 2 ( . % 0 1 1 . % 0 0 0 . % 1 5 4 . % 5 2 0 . % 2 1 0 . % 4 0 0 . % 0 0 0 . % 2 1 0 . ) % 3 0 0 ( . ) % 0 0 0 ( . % 0 0 0 . % 3 3 4 . % 6 9 3 1 . ) % 5 7 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 1 0 3 ( . ) % 6 9 2 ( . % 8 9 3 . ) % 9 4 6 2 ( . l i ) 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 ) 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 ) 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 m L i d e t i i m L ) y r a t e i r p o r P ( c n i z m a N d e t i m L 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 i i 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 l i d e t i m L i i l V B g n d o H c n Z L H T i d e t i i m L c n Z L H T i ) d ( 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 ( 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 i i m L s g n d o H a d n l i I n r i a C ) e ( d e t i i i l 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 ) e ( 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 ) e ( d e t i i l m L 1 k c o B t a r a u G y g r e n E n r i a C j 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 i n a w a T e t a r t S n a v A c n I a e r o K e t a r t S n a v A c n I e t a r t S n a v A i s e i r a d s b u s i ) d ( 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 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 i i m L g n n M n e e h s L n a r o i l l i K 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 l m L s g n d o H n e e h s L a t n a d e V i 0 1 1 1 9 2 1 3 1 4 1 5 1 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 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 t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) 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 ) s e i t i l i b a i l t a s A 2 2 0 2 h c r a M 1 3 y t i t n e e h t f o e m a N . S o N 570 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS . 5 7 1 3 6 6 0 ` = Y P J 1 , . 9 1 1 0 5 ` = R A Z 1 , . 9 1 1 0 5 ` = D A N 1 , . 1 0 7 2 0 2 ` = D E A 1 , . 3 2 6 4 4 7 ` = D S U 1 , . 5 3 4 0 5 5 ` = D U A 1 : 2 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 3 4 0 2 6 0 ` = Y P J 1 , . 1 4 9 1 5 ` = R A Z 1 , . 1 4 9 1 5 ` = D A N 1 , . 4 6 7 5 0 2 ` = D E A 1 , . 4 7 8 5 5 7 ` = D S U 1 , . 7 9 1 6 6 5 ` = D U A 1 : 2 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 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 h t i w d e t i i m L r e w o P R O C A F f o r e g r e m e h t r o f 1 2 0 2 r e b m e t p e S 6 1 n o k c a t t u C T L C N t a n o i t a c i l l p p a n a d e fi s a h p u o r G e h T . 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 h t i i i w d e t i i m L e t a v i r P t r o P a e S a o G , 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 s t r o P e t i l r e t S , 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 f o r e g r e m e h t r o f 1 2 0 2 r e b m e t p e S 9 2 n o T L C N i a n n e h C t a d n a 1 2 0 2 r e b m e t p e S 5 2 n o T L C N i a b m u M t a n o i t a c i l l p p a n a d e fi s a h p u o r G e h T . 1 . 2 571 t n u o m A ) e r o r C n i ` ( f o % s A t n u o m A I C T d e t a d i l o s n o c ) 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 ) e r o r C n i ` ( f o % s A t n u o m A t fi o r p d e t a d i l o s n o c ) 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 ) 1 ( 0 0 ) 0 ( - ) 1 ( ) 3 8 0 7 ( , 5 2 6 9 1 , ) % 0 0 0 ( . % 0 0 0 . % 0 0 0 . ) % 0 0 0 ( . % 0 0 0 . ) % 0 0 0 ( . ) % 9 0 6 3 ( . % 0 0 . 0 0 1 ) 1 ( - - - - - 4 2 6 3 2 8 ) % 6 0 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 0 0 0 . % 6 7 5 7 . % 0 0 . 0 0 1 ) 0 ( 0 0 ) 0 ( - ) 1 ( ) 4 0 7 7 ( , 2 0 8 8 1 , ) % 0 0 0 ( . % 0 0 0 . % 0 0 0 . ) % 0 0 0 ( . % 0 0 0 . ) % 0 0 0 ( . ) % 7 9 0 4 ( . % 0 0 . 0 0 1 0 1 ) 0 ( 1 0 2 ) 4 1 1 0 4 ( , 3 8 3 5 6 , % 0 0 0 . % 0 0 0 . ) % 0 0 0 ( . % 0 0 0 . % 0 0 0 . % 0 0 0 . ) % 5 3 1 6 ( . % 0 0 . 0 0 1 ) f ( y t i u q E r e p ( s e r u t n e v t n o J d n a s e t a i c o s s A i ) g ( ) d o h t e m i n a 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 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 ) 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 m L i n g i e r o F i i ) 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 i d t L ) y t P ( p h s n w o T r o k S h s o R d e t i m L 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 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 d e t i i m L e t a v i r P y g r e n E & s e n M i l i a o C a p m a R s e d u c x E l ) g ( . s e c n e r e f f i d P A A G d n a s t n e m t s u d a n o i t a d j 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 t s u d a n o i t a d j i l o s n o C . 1 2 0 2 l i r p A 9 1 n o ) " A C M i " ( s r i a f f A e t a r o p r o C f o y r t s n M y b f f o k c u r t s s a w h c h w i i i n o i t a d u q L r e d n U i ) e ( r a e y e h t g n i r u d d e t a d u q L i i ) d ( r a e y e h t g n i r u d d e t a r o p r o c n I ) c ( r a e y e h t g n i r u d d e r i u q c A ) b ( i f f o g n k i r t s r o f n o i t u o s e r a d e s s a P l 1 2 3 1 2 3 ) a ( ) f ( 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 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 d e d n e r a e Y 2 2 0 2 h c r a M 1 3 ) s e i t i l i b a i l t a s A 2 2 0 2 h c r a M 1 3 y t i t n e e h t f o e m a N . S o N NOTES forming part of the financial statements as at and for the year ended 31 March 2023CONSOLIDATED 46 Other Statutory Information a) The Group does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property. b) TheGrouphasnotbeendeclaredwilfuldefaulterbyanybankorfinancialInstitutionorotherlender. c) The Group does not have any transactions with companies struck off as per Companies Act, 2013. d) The Group does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period. e) TheGrouphasnottradedorinvestedinCryptocurrencyorVirtualCurrencyduringthefinancialyear. f) The Group has no any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961). 47 Subsequent events There are no other material adjusting or non-adjusting subsequent events, except as already disclosed. 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 Group Chief Executive Officer DIN 07291685 per Vikas Pansari Partner Membership No: 093649 Place: Mumbai Date: 12 May 2023 Place: Mumbai Date: 12 May 2023 Prerna Halwasiya Company Secretary and Compliance Officer ICSI Membership No. A20856 572 NOTES forming part of the financial statements as at and for the year ended 31 March 2023VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ) 5 8 ( ) 2 ( 4 1 - 1 ) 4 8 ( 0 5 ) 2 ( 6 3 - - - - 7 5 7 3 1 1 ) 4 4 6 ( 5 3 3 8 4 4 7 2 5 4 2 8 1 2 - 3 0 9 1 5 0 1 , 7 7 7 4 , 6 9 2 5 1 , 8 9 0 4 3 , 0 5 8 9 , 2 1 5 2 2 , 4 5 4 5 3 , 6 9 0 2 1 , 5 4 8 ) 7 6 2 ( 8 3 5 6 1 3 3 0 1 , 3 5 0 1 , 5 1 5 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS 1 5 0 0 1 0 0 1 0 0 1 2 9 4 6 . 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 1 - - - - - - - - - - - - - - - - - - ) 7 6 2 ( ) 4 5 ( - - ) 4 5 ( 6 0 2 5 , ) 1 ( 5 4 5 ) 7 6 ( ) 1 2 ( ) 1 2 ( ) 5 4 ( - - - ) 0 ( - - - - - ) 1 ( 5 4 5 ) 7 6 ( ) 1 2 ( ) 1 2 ( ) 5 4 ( - - - - - - - - 3 ) 0 7 ( ) 3 2 ( ) 3 9 ( 1 0 8 5 , 4 2 1 5 2 - 2 1 1 1 , 1 5 3 3 6 4 1 , 4 2 2 5 , - - - - - - - - - - - - 6 5 7 5 , 5 8 6 1 , ) 4 5 1 4 ( , 4 2 4 7 , 8 7 0 4 , ) 0 2 4 3 ( , 9 1 5 4 , 9 8 8 1 , ) 3 7 6 2 ( , 5 4 3 2 5 4 1 , 0 0 1 1 , 4 5 4 3 6 4 7 0 2 9 2 , 0 8 4 1 , ) 0 4 4 1 ( , 1 3 2 2 6 6 1 , 7 5 2 2 , 6 9 5 3 9 3 2 , 9 1 1 6 , 6 2 7 3 , 8 2 2 3 2 4 0 2 2 8 4 7 2 4 7 2 0 0 0 0 0 7 0 3 1 , 5 9 5 ) 4 2 2 8 ( , 3 1 5 7 , i t a r i m E - D E A m a h r i D 8 8 2 8 , 8 0 3 1 1 , ) 6 8 1 ( 7 0 2 3 , I N A D N I - R N I n a i l a r t s u A E E P U R - D U A n a i l a r t s u A r a l l o D r a l l o D - D U A d e t i n U - D S U r a l l o D s e t a t S I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S E E P U R 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 r a l l o D 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 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 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 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 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 y t P s e n M i r e p p o C a g n a a h T l d e t i m L i V B o l l e C e t n o M d e t i i m L y t P 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 r e w o P o b a S i d n a w a T l d e t i i m L y g r e n E O C L A M l C Z F d o G h a r i a u F j d e t i i m L s e r u t n e V c n Z L H T i i a n a m s a T f o s e n M i d e t i m L i r e p p o C i y n a p m o C m u n m u A t a r a h B i l 1 2 3 4 5 6 7 8 9 d t L c n Z L H T i 0 1 i l i i s g n d o H a b m a N c n Z L H T i ) y r a t e i r p o r P ( c n Z n o p r o k S i i d t L ) y r a t e i r p o r P ( d e t i m L i 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 ( i l V B g n d o H c n Z L H T i 1 1 2 1 3 1 4 1 i i n a b m a N - D A N o t l i r p A d e t i i m L ) y r a t e i r p o r P ( c n i z m a N 5 1 i i n a b m a N - D A N r a l l o D h t u o S - R A Z d n a R n a c i r f A d e t i n U - D S U r a l l o D s e t a t S r a l l o D 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 h c r a M 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 6 1 i 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 m L ) y r a t e i r p o r P ( d e t i m L i i i i g n n M n a t n u o M k c a B l 7 1 8 1 573 2 4 1 3 3 7 9 4 2 3 1 , 1 4 1 6 0 9 6 , 4 5 6 4 1 , 6 2 5 7 , 1 2 2 I N A D N I - R N I f o % ) e r o r C n i ` ( i l g n d o h e r a h s d e s o p o r P - d n e d i v i D d e s o p o r P l a n F i d n e d i v i D / t fi o r P ) s s o L ( r e t f A r o f i n o s i v o r P / n o i t a x a T / t fi o r P ) s s o L ( e r o f e B n o i t a x a T ) t i d e r c ( n o i t a x a T r e v o n r u T i g n d u c x e ( l s t n e m t s e v n I l a t o T l a t o T i ) y r a d s b u S i n i t n e m t s e v n I s e i t i l i b a L i s t e s s A s e v r e s e R l s u p r u S & e r a h S l a t i p a C g n i t r o p e R g n i t r o p e R y c n e r r u c 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 4 1 0 2 , s e l u R ) s t n u o c c A ( s e i n a p m o C e h t f o 5 e l 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 i t n a u s r u p s e i r a 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 f o % ) e r o r C n i ` ( i l g n d o h e r a h s d e s o p o r P - d n e d i v i D d e s o p o r P l a n F i d n e d i v i D / t fi o r P ) s s o L ( r e t f A r o f i n o s i v o r P / n o i t a x a T / t fi o r P ) s s o L ( e r o f e B n o i t a x a T ) t i d e r c ( n o i t a x a T r e v o n r u T i ) y r a d s b u S i i g n d u c x e ( l s t n e m t s e v n I l a t o T l a t o T n i t n e m t s e v n I s e i t i l i b a L i s t e s s A s e v r e s e R l s u p r u S & e r a h S l a t i p a C g n i t r o p e R g n i t r o p e R y c n e r r u c 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 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 - - - - - - - - - - - - - - - - - - - - 7 9 0 1 5 - ) 0 ( ) 0 ( 1 1 - 7 8 1 1 5 - - - - - - 1 3 ) 8 5 ( ) 7 2 ( 7 7 1 - - - - - 3 - - 9 7 5 2 2 5 4 2 0 1 0 1 1 0 0 1 ) 5 7 ( - 5 7 - - - 8 2 1 0 - - 2 2 5 2 4 5 ) 7 2 ( 7 4 ) 2 5 ( 3 1 ) 9 3 ( - 4 7 7 6 9 2 , 6 9 3 1 1 , 3 3 7 3 , 6 9 6 4 , 8 3 0 1 , 1 4 7 9 7 7 1 , 0 0 0 7 , 2 2 1 1 , 1 6 4 5 , 8 1 4 9 , 6 4 1 1 9 3 , 2 1 - - - - 0 8 5 3 0 7 6 7 3 - - - - - - - - 2 1 - - - - 0 8 5 - - - - - - 3 0 7 5 0 1 6 7 3 7 9 - - - - - - - - - - - - 1 0 1 ) 1 2 ( 9 7 7 7 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ) 1 2 9 1 ( , 1 2 9 1 , 2 7 0 1 1 , 6 5 8 ) 0 0 3 8 2 ( , 4 8 0 8 1 , 8 0 4 1 , 3 9 0 1 , ) 5 1 3 ( 7 3 5 6 4 7 2 4 5 2 3 2 4 3 ) 6 ( - - - - - - - - - - 1 2 2 - - - d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S I N A D N I - R N I E E P U R d e t i n U - D S U r a l l o D s e t a t S d e t i n U - D S U r a l l o D s e t a t S I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R d e t i n U - D S U r a l l o D s e t a t S I N A D N I - R N I E E P U R 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 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 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 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 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 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 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 i i g n n M n e e h s L a t n a d e V i d e t i i m L g n i l l i M n e e h s L i 1 2 d e t i m L i i p h s r e n t r a P e n M n e e h s L i i 2 2 h t r e B o g r a C l a r e n e G g a z i V 4 2 6 d e t i i m L s t r o P e t i l r e t S 3 2 d e t i i m L e t a v i r P 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 5 2 s n o b r a c o r d y H y g r e n E n r i a C 6 2 d e t i m L i d e t i i m L ) e t a v i r P ( a k n a L n r i a C 7 2 i 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 1 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 1 d e t i m L i l j 1 k c o B t a r a u G y g r e n E n r i a C 8 2 9 2 0 3 h t r e B o g r a C i t l u M p d a r a P i 1 3 2 d e t i m L i 6 d e t i i m L e t a v i r P e t a v i r P s e r u t n e V e m i t i r a M 6 3 1 V B o k s a m o k a L 7 3 6 d e t i m L i 6 d e t i m L i 6 d e t i i m L e t a v i r P t r o P a e S a o G 8 3 n o i t a r o p r o C g n n M a s e S i i 5 3 d e t i i m L s e c r u o s e R a s e S 4 3 d e t i i i m L n a t n u o F m o o B l d e t i i l m L r e t s u C n r e t s e W 2 3 3 3 i i g n n M n e e h s L n a r o i l l i K 0 2 d e t i m L i . I S . o N 9 1 574 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 INTEGRATED REPORT STATUTORY REPORTS FINANCIAL STATEMENTS f o % ) e r o r C n i ` ( l i g n d o h e r a h s d e s o p o r P - d n e d i v i D d e s o p o r P l a n F i d n e d i v i D / t fi o r P ) s s o L ( r e t f A r o f i n o s i v o r P / n o i t a x a T / t fi o r P ) s s o L ( e r o f e B n o i t a x a T ) t i d e r c ( n o i t a x a T r e v o n r u T i g n d u c x e ( l s t n e m t s e v n I l a t o T l a t o T i ) y r a d s b u S i n i t n e m t s e v n I s e i t i l i b a L i s t e s s A s e v r e s e R l s u p r u S & e r a h S l a t i p a C g n i t r o p e R g n i t r o p e R y c n e r r u c 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 0 0 1 3 6 1 5 . 0 0 1 0 0 1 9 9 9 9 . - - 9 4 5 9 . 0 0 1 0 0 1 0 0 1 0 0 1 0 0 1 - - - - - - - - - - - - - 4 ) 6 1 3 ( ) 5 0 2 ( ) 9 8 ( 2 - - - - - - - 1 6 2 ) 9 9 1 ( 6 ) 6 1 3 ( 6 - ) 5 0 2 ( 6 3 ) 9 8 ( 2 6 - - 5 5 2 8 7 7 - - 0 - - - - - - 9 7 1 0 3 2 1 5 1 4 1 5 , 4 5 8 2 , ) 4 9 2 2 ( , 0 6 e s e n a p a J - Y P J I N A D N I - R N I E E P U R n e Y 3 0 7 2 , 0 6 5 ) 5 3 9 2 ( , 1 9 7 e s e n a p a J - Y P J n e Y 9 7 5 7 7 0 3 , 5 7 1 2 , 3 2 3 e s e n a p a J - Y P J 3 4 3 8 0 9 1 3 5 4 3 - - - - - - - - I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R I N A D N I - R N I E E P U R n e Y ) 8 5 5 ( 7 8 ) 1 7 4 ( 8 0 0 8 , 0 2 9 7 6 5 , 6 4 2 1 1 , 8 1 7 3 , 9 4 8 1 , I N A D N I - R N I E E P U R 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 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 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 t s u r T S O S E d e t i i m L a t n a d e V 9 3 c n I i n a w a T e t a r t S n a v A 2 4 c n I a e r o K e t a r t S n a v A 1 4 n o i t a r o p r o C y o l l A o r r e F 3 4 5 ) R O C A F ( d e t i m L i 3 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 4 4 5 d t L r e w o P R O C A F 5 4 d e t i m L i l e e t S L S E 6 4 c n I e t a r t S n a v A 0 4 ) 4 ( ) 1 ( ) 1 ( 0 ) 3 ( - - - - - ) 4 ( ) 1 ( ) 1 ( 0 ) 3 ( 7 - 6 - - - - - - - 5 2 5 1 ) 2 1 ( 1 0 4 - 0 1 5 4 1 4 4 1 ) 1 ( ) 1 ( ) 0 ( ) 3 ( 2 0 0 0 0 I N A D N I - R N I r e b m e v o N y n a p m o C t n e m e C i a s e D 7 4 E E P U R h c r a M o t I N A D N I - R N I r e b m e v o N e t a v i r P s y o l l d e t i i m L e t a v i r P i A c n Z n a t s u d n H i 8 4 E E P U R h c r a M o t d e t i m L i I N A D N I - R N I r e b m e v o N & l l i a b t o o F c n Z a t n a d e V 9 4 E E P U R h c r a M o t n o i t a d n u o F s t r o p S I N A D N I - R N I r e b m e t p e S E E P U R h c r a M o t s r e z i l i t r e F c n Z n a t s u d n H i i 0 5 4 d e t i i m L e t a v i r P E E P U R h c r a M I N A D N I - R N I o t t s u g u A 4 n o i t a d n u o F a d n i I c n Z i 1 5 . 7 7 7 3 9 5 0 ` = Y P J 1 , . 9 3 2 7 4 ` = R A Z 1 , . 9 3 2 7 4 ` = D A N 1 , . 7 1 5 8 1 2 ` = D E A 1 , . 4 2 7 2 0 8 ` = D S U 1 , . 2 8 3 9 4 5 ` = D U A 1 : 3 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 . 8 8 7 7 1 6 0 ` = Y P J 1 , . 6 7 1 6 4 ` = R A Z 1 , . 6 7 1 6 4 ` = D A N 1 , . 8 6 6 3 2 2 ` = D E A 1 , . 3 7 6 1 2 8 ` = D S U 1 , . 3 8 3 0 5 5 ` = D U A 1 : 3 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 . r a e y e h t g n i r u d d e r e t s g e r e D i 2 . r a e y e h t g n i r u d f f o k c u r t S 3 . r a e y e h t g n i r u d d e t a d u q L 1 i i o t n i ) ” L P F “ ( d e t i m L i r e w o P r o c a F f o n o i t a m a g a m A f o l e m e h c S e h t d e v o r p p a 2 2 0 2 r e b m e v o N 5 1 d e t a d r e d r O s t i e d i v h c n e B k c a t t u C , l a n u b i r T w a L y n a p m o C l a n o i t a N e b n o H l ’ , r a e y t n e r r u c e h t g n i r u D . r a e y e h t g n i r u d d e t a r o p r o c n I 4 5 y n a p m o C e h t , 2 2 0 2 r e b m e v o N 1 2 n o e v i t c e f f e g n m o c e b n o i t a m a g a m a e h t l i t s o P . y n a p m o C e h t i i f o y r a d s b u s a s i n r u t n i i h c h w R O C A F f o y r a d s b u s a s a w L P F i i . ) ” R O C A F “ ( d e t i i m L n o i t a r o p r o C s y o l l A o r r e F . i l n o i t a m a g a m a s h t o t e u d p u o r G e h t f o s t n e m e t a t s l i a c n a n fi d e t a d i l o s n o c e h t n o t c a p m i l a i r e t a m o n s i e r e h T . R O C A F n i l . % 9 9 9 9 s d o h y l t c e r i d i t l u M p d a r a P i , ) L P S ( d e t i m L i s t r o P e t i l r e t S f o n o i t a m a g a m a l f o e m e h c s i e h t g n n o i t c n a s y l e v i t c e p s e r 3 2 0 2 h c r a M 2 2 d n a 2 2 0 2 e n u J 6 0 d e t a d s r e d r o d e s s a p s a h T L C N i a n n e h C d n a T L C N i a b m u M e h T 6 , ) L R S ( d e t i i i i m L s e c r u o s e R a s e S f o s e i r a d s b u s n w o d p e t s / s e i r a d s b u s d e n w o y l l i i o h w , ) L P S G ( d e t i i m L e t a v i r P t r o P a e S a o G , ) L P V M ( 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 , ) B C M P ( d e t i i m L e t a v i r P h t r e B o g r a C . . s s e r g o r p n i s i A C M h t i w g n i l fi y r o t u t a t S . ) L C M S ( 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 h t i i i w 575 0 2 0 2 r e b m e c e D 0 3 2 2 0 2 r e b m e c e D 1 3 3 2 0 2 h c r a M 1 3 3 2 0 2 h c r a M 1 3 3 2 0 2 h c r a M 1 3 2 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 . 9 0 4 . ) 4 4 1 ( . 1 5 0 0 0 . % 0 0 1 5 . 9 6 0 0 0 . % 0 0 9 6 . l o r t n o c t n o J i y t i t n e e h t f o l o r t n o c t n o J i y t i t n e e h t f o 0 0 0 5 , 1 0 0 . . . A N % 0 0 0 5 . 1 0 0 . 6 0 0 . . 1 2 0 2 l i r p A 9 1 n o ) " A C M , 1 2 4 4 1 1 , , 0 0 0 3 2 3 , 6 9 1 . . . A N % 2 6 7 1 . 4 8 4 . 2 6 3 . 2 3 0 . % 0 0 0 5 . f o y a w y B i p h s r e n w o 1 2 1 . ) 2 1 0 ( . 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 9 6 1 . ) 8 5 0 ( . i i " ( s r i a f f A e t a r o p r o C f o y r t s n M y b f f o k c u r t s s a w h c h w d e t i i i l e h t 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 ) e r o r C n i ` ( t n e m t s e v n i f o t n u o m A - d n e r a e y e h t t a y n a p m o C r e b m u N - e c n e u l f n i 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 l i g n d o h f o % - i m L e t a v i r P y g r e n E & s e n M i l i a o C a p m a R s e d u c x E l ) e r o r C n i ` ( 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 ) e r o r C n i ` ( r a e y e h t r o f t fi o r P / ) s s o L ( i l 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 1 2 3 4 5 ) a d e t i m L i d e t i m L i l n o i t a r o p x E b u r a g r e G h t l a e H h a n P h s o R i i ) y t P ( g n n M d n a i ) y r a t e i r p o r P ( e r a C d e t i m L i d e t i i m L y n a p m o C d e t i i m L e t a v i r P d t L ) y t P ( e t a v i r P 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 s a e s r e v O v a r u a G i p h s n w o T r o k S h s o R ) a ( 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 o N S . 4 1 0 2 , s e l u R ) s t n u o c c A ( s e i n a p m o C e h t f o 5 e l 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 i t n a u s r u p s e i r a 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 576 r e c fi f 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 d n a r o t c e r i D e m T - e o h W l i 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 r e c fi f O e v i t u c e x E f e h C p u o r G i l a y i s a w a H a n r e r P l a g g u D l i n u S 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 d n a n a m 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 i v a N r o t c e r i D e m T - e o h W i l 3 2 0 2 y a M 2 1 : e t a D 3 0 3 6 0 0 0 0 N D I i a b m u M : e c a P l VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 ABBREVIATIONS ABH ACT-UP ADB AGI AI AIML APC APH ASP Aishwariya Barmer Hill Accelerated Tracking and Upgradation Process Asian Development Bank Above Ground Installations ArtificialIntelligence ArtificialIntelligenceandMachineLearning Advanced Process Control Air Pre-heaters Alkaline Surfactant Polymer ASSOCHAM The Associated Chambers of Commerce & Industry of India BALCO Bharat Aluminium Company Limited BDZ BEV BMM BMP BOA boe Boz BRSR BU CAGR CAPA CAPEX CARES CBM CCP CDP CEIC CEO CFD CFO CHRO CII CIO CISO CLZS CMDPA CMIE CNG COD COE CoP CRM CRRI CSO Bio Degradable Zone Battery Electric Vehicles Black Mountain Mining Biodiversity Management Plan Biodiversity Offset Agreement Barrel of Oil Equivalent Billion ounces Business Responsibility and Sustainability Reporting Business Unit Compound Annual Growth Rate Corrective and Preventive Actions Capital Expenditure CertificationAuthorityforReinforcingSteels Coal Bed Methane Charge Chrome Plant Carbon Disclosure Project Census and Economic Information Centre ChiefExecutiveOfficer Condensed Flash Drum ChiefFinancialOfficer ChiefHumanResourceOfficer Confederation of Indian Industry ChiefInformationOfficer ChiefInformationSecurityOfficer Chanderiya Lead Zinc Smelter Coal Mine Development and Production Agreement Centre for Monitoring Indian Economy Compressed Natural Gas Committee of Directors Centre of Excellence Cost of Production Critical Risk Management Central Road Research Institute ChiefSecurityOfficer CSR CSUSP CTE CTO CXO CY Corporate Social Responsibility Cairn Sustainability & Safety Performance Program Consent to Establish Consent to Operate ChiefExperienceOfficer Calendar Year DAERDLR Department of Agriculture, Environmental Affairs, Rural Development and Land Reform DGH DGPO DJSI DLP DSC DSF E&Y EBITDA EC EOR EPS ESG ESL Directorate General of Hydrocarbons Data Governance Professionals Organization Dow Jones Sustainability Indices Data Leakage Prevention Dariba Smelting Complex Discovered Small Field Ernst & Young Pvt. Ltd. Earnings before interest, taxes, depreciation, and amortisation Environmental Clearance Enhanced Oil Recovery Earnings Per Share Environmental, Social and Governance Electrosteel Limited ESOP Employees’ Stock Option Scheme ETF EU EV ExCo FACOR FCF FDI FGD FICCI FIMI FMCG FOG FRHC FTSE FY GCC GDP GHG Exchange Traded Fund The European Union Electric Vehicle Executive Committee Ferro Alloys Corporation Limited Free Cash Flow Foreign Direct Investment Flue Gas Desulfurization Federation of Indian Chambers of Commerce & Industry Federation of Indian Mineral Industries Fast-moving Consumer Goods Fall of Ground Fire-refinedHighConductivity Financial Times Stock Exchange Financial Year Gulf Cooperation Council Gross Domestic Product Greenhouse Gas GISTM Global Industry Standard on Tailing Management GoI GRI GRMC GW Government of India Global Reporting Initiative Group Risk Management Committee Giga Watt 577 ABBREVIATIONS HCFC HR HSE HVLT HZAPL HZL IBAT IBBI ICMM ICSI IFC IHS IIM IIME IIRC IMD IMF Ind AS IOB IR ISO ISP ICP ITGC IUCN JPC kA High Carbon Ferro Chrome Human Resource Health, Safety and Environment High Volume Low Toxicity Hindustan Zinc Alloys Private Limited Hindustan Zinc Limited Integrated Biodiversity Assessment Tool Indian Biodiversity Business Initiative International Council on Mining and Metals Institute of Company Secretaries of India International Finance Corporation Information Handling Services Indian Institute of Management Indian Institute of Mineral Engineers International Integrated Reporting International Institute for Management Development International Monetary Fund Indian Accounting Standards Iron Ore Business Integrated Reporting International Organization for Standardization Integrated Steel Plant Internal carbon pricing IT General Control International Union for Conservation of Nature Joint Plant Committee kiloampere kboepd thousand barrels of oil equivalent per day KLD KPI KPMG KRA kt KTPA kWh LBMA LEAP LF Kilo Litres Per Day Key Performance Indicator Klynveld Peat Marwick Goerdeler International Limited Key Responsibility Area Kilo Tonnes Kilo-Tonnes Per Annum Kilowatt hours London Bullion Metals Association Leadership Execution and Action Planning Lower Fatehgarh LGBTQ+ Lesbian, Gay, Bisexual, Transgender, Queer or Questioning Persons or the Community LME LMV LOI LTIFR M&A London Metal Exchange Light Motor Vehicle Letter of Intent Lost Time Injury Frequency Rate Mergers and Acquisitions MALCO The Madras Aluminium Company Limited ManCom Management Committee MEAI MGMI MIS mmboe mmscfd mnt MoEF&CC MOSPI MoU Moz MSCI MSME MT MTPA MW NELP NGO NHAI NiSo4 NNL NPI NPWI O&G O&M OALP OECD OLAP OMS OPEC PAT PDA PLF PLI PMI PPP PSC PT PTS PwC R&R RBI RCA RCM RDG RE Mining Engineers Association of India Mining Geological & Metallurgical Institute of India Management Information Systems Million barrels of oil equivalent million standard cubic feet per day Million tonnes Ministry of Environment, Forests and Climate Change Ministry of Statistics and Program Implementation Memorandum of Understanding Million ounces Morgan Stanley Capital International. Ministry of Micro, Small & Medium Enterprises Management Trainees Metric Tonnes Per Annum Megawatt New Exploration and Licensing Policy Non-governmental Organization National Highway Authority of India Nickel sulphate No Net Loss Net Positive Impact Net Water Positive Impact Oil and Gas Operations and Maintenance Open Acreage Licensing Programme The Organization for Economic Cooperation and Development Online Analytical Processing Operational Maintenance and Surveillance Organization of the Petroleum Exporting Countries ProfitAfterTax Power Delivery Agreements Plant Load Factor Production Linked Incentives Purchasing Managers Index Purchasing Power Parity Production Sharing Contract Penetration Testing Plant Technical System PricewaterhouseCoopers Reserves & Resources Reserve Bank of India Root Cause Analysis Risk Control Matrix Raageshwari Deep Gas Renewable Energy Management Assurance Services Master of Business Administration million barrels per day Managing Director RE RTC ROCE RoW SANBI Round the Clock Renewable Energy Return on Capital Employed Rest of the world South Africa Biodiversity Institute MAS MBA mbpd MD 578 VEDANTA LIMITEDIntegrated Report and Annual Accounts 2022-23 South Africa Police Services Science Based Targets initiative Sustainable Development Goals Securities and Exchange Board of India Sterlite Energy Ltd Semi Fire Suppression System Shanghai Futures Exchange Security Incident and Event Management Special Leave Petition Standard Operating Procedure Sarbanes-Oxley Act UF UN UNEP UNGC US USGS VA VAB VAL VAPT VEDL Upper Fatehgarh United Nations United Nations Environment Programme United Nations Global Compact United States United States Geological Survey Vulnerability Assessment Value Added Businesses Vedanta Aluminium Limited Vulnerability Assessment and Penetration Testing Vedanta Limited Social Performance Steering Committee V-EXCEL Vedanta Exemplary Campus Emerging Leaders SAPS SBTi SDG SEBI SEL SFSS SHFE SIEM SLP SOP SOx SPSC SR SSC SSR SWOT TACO TC/RC TCFD tCO2e TERI TMT TNFD Sustainability Report SpecificStreamConsumption Slope Stability Radars Strengths, Weaknesses, Opportunities, and Threats analysis The Animal Care Organization TreatmentChargesandRefiningCharges Taskforce on Climate-related Financial Disclosures Tonnes of carbon dioxide equivalent The Energy and Resources Institute Thermo Mechanically Treated Taskforce on Nature-Related Financial Disclosures TNPCB Tamil Nadu Pollution Control Board TO toz TRIFR TSF TSPL TTR UAE TransformationOffice troy ounce Total Recordable Injury Frequency Rate Tailing Storage Facility Talwandi Sabo Power Limited Tax Transparency Report United Arab Emirates VGCB VLDP VPI VPSHR VSAP VSAP VSAP VSF WAH WBCSD WCL WEO WIP YoY YUVA ZLD ZM ZSD Vizag General Cargo Berth Vedanta Leadership Development Program Vehicle Pedestrian Interaction Voluntary Principles on Security and Human Rights Vedanta Sustainability Assurance Programme Vedanta Sustainability Assurance Framework Vedanta Sustainability Assurance Process Vedanta Sustainability Framework Work At Height The World Business Council for Sustainable Development WesternCoalfieldsLimited World Economic Outlook Work In Progress Year on Year Young Upcoming Vedanta Achievers Zero Liquid Discharge Zawar Mine Zinc Smelter Debari 579 ABBREVIATIONS NOTES 1st Floor, ‘C’ Wing, Unit 103, Corporate Avenue, Atul Projects, Chakala, Andheri (E), Mumbai - 400 093, Maharashtra CIN: L13209MH1065PLC291394 | www.vedantalimited.com