Plain-text annual report
Resourceful | Sustainable | Value-Focussed
2024
INTEGRATED REPORT AND
ANNUAL ACCOUNTS
A STRONGER
VEDANTA
A STRONGER
VEDANTA
CONTENTS
Vedanta at a
glance
pg.06
Message
from the Chairman
pg.24
People and
Culture
pg.130
VEDL Reporting Suite
To view this report online, please visit:
www.vedantalimited.com
At Vedanta, we are inspired to deliver superior performance, create enduring value
for the stakeholders and nation and grow sustainably. Our sustained investment and
efforts on these fronts not only enhance these outcomes but also make us a more
resilient and future-ready entity.
Through the last many years, our journey of transformation
has solidified our status as a world-class Indian multinational
with an unparalleled asset base. This positions us at the
forefront of India’s natural resource potential, reinforced
by our focus on innovation, digitalisation and industry best
practices that ensure top-tier operational performance. Our
pioneering environmental, social and governance (ESG)
initiatives further solidify our reputation as a sustainable and
responsible organisation.
FY 2023-24 proved pivotal in this journey. Multiple completed
and ongoing capacity expansion programmes position us
at the forefront of the immense opportunities emanating
from the growing Indian economy and commodity demand.
Vertical integration projects including securing raw
Integrated Report
01
Integrated Thinking at Vedanta
02
Highlights FY 2023-24
Introducing Vedanta
06
Vedanta at a glance
10
Presence
12
Asset Overview
16
Our Investment Case
Management
Discussion and Analysis
146 Market Review
152 Segment Review
162 Finance Review
166 Operational Review
Statutory Reports
206 Directors’ Report
264 Report on Corporate Governance
320 Business Responsibility and
Sustainability Report
Financial Statements
384 Consolidated Financials
516 Standalone Financials
632 Abbreviations
Our Board and Management
76
Board of Directors
80
Executive Committee
Sustainability Review
94
Our ESG Strategy
130 People and Culture
138 Corporate Governance
142 Awards
Stakeholder Engagement
and Materiality
90
Stakeholder Engagement
92
Materiality
Performance Review
24
Message from the Chairman
28
Management Speak
34
Case Studies
44
Key Performance Indicators
48
Value-Creation Model
52
Opportunities
56
Strategic Priorities and Update
66
Risk Management
Resourceful | Sustainable | Value-focussed
VEDANTA LIMITED | Sustainability Report (SR) 2022-23
Information coverage:
Disclosures on triple bottom line performance
Standards/guidelines used:
Global Reporting Initiative (GRI) Standards
VEDANTA LIMITED | Transparency Report (TTR) 2022-23
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 | TCFD Report 2023
Information coverage:
Climate-related financial disclosures
Standards/guidelines used:
Approach to climate action, climate strategy and climate
risk management
VEDANTA LIMITED | Integrated Report (IR) and
Annual Accounts 2022-23
Information coverage:
Holistic disclosure of performance and strategy
Standards/guidelines used:
International Integrated Reporting Framework, Indian Accounting
Standards (Ind AS) Indian Secretarial Standards
materials through reinforcing mining operations are poised
to strengthen our cost leadership position. Exceptional
progress on the sustainability front is contributing to
resilient communities, bringing in global recognition and
strengthening the brand Vedanta. Importantly, the proposed
demerger into six pure-play entities is set to streamline
our corporate structure and unlock growth potential
across each vertical.
As India accelerates towards a rapid growth trajectory
brimming with exciting opportunities, Vedanta stands on a
stronger footing with enhanced capacities, competencies
and a strong purpose. We are poised for greater success and
creating enduring value for all stakeholders, affirming our
position as ‘A Stronger Vedanta’.
At Vedanta, an integrated and comprehensive approach to value creation, helps us
grow from strength to strength. This propels our long-term growth while empowering
us to contribute to the nation’s growth, foster a sustainable world and create value for
all our stakeholders. This model, firmly anchored in our mission and values, considers
all resources and relationships, external operating factors and material issues to craft
effective strategies. We have further embedded ESG aspects with our ‘Transforming
for Good’ strategy and a more encompassing ‘Transforming Together’ theme to
reinforce our decision-making process and bring greater resilience to our business.
Vedanta has consistently raised the bar in disclosures, surpassing the statutory
requirements and adopting global reporting frameworks. This helps our stakeholders and
providers of financial capital in making informed decisions. Our Integrated Report and Annual
Accounts FY 2023-24 has been compiled using the Content Elements and Guiding Principles
set out in the International Integrated Reporting Council’s (IIRC) Framework, now a part
of the IFRS Foundation.
ABOUT THE REPORT
Integrated Reporting aims at explaining
how the Company creates, preserves
and erodes value sustainably over
time, consistent with Vedanta’s values,
purpose and strategy. We started this
journey in FY 2017-18, with ongoing
improvements and enhanced integrated
thinking. Our FY 2023-24 report
provides a comprehensive overview
of our material issues, maintaining
the highest standards of transparency
and integrity. It highlights their impact
on the environment and people as
well as the risks and opportunities for
business success, and will thus help
make an informed assessment of our
ability to create value over the short,
medium and long term.
Scope and boundary
The Integrated Report and Annual
Accounts 2023-24 covers the reporting
period from 1 April 2023 to 31 March
2024, 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 Vedanta’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 384 to 631) 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 384 and 516 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 18 June 2024.
A STRONGER, VALUE-ACCRETIVE
VEDANTA ENABLED BY
INTEGRATED THINKING
Value creation for stakeholders
Resulting in an impact across the capitals and for stakeholders
Capitals
Financial
Capital
Manufactured
Capital
Social &
Relationship
Capital
Natural
Capital
Intellectual
Capital
Human
Capital
Shareholders,
investors and lenders
Local
communities
Governments
Civil societies
Employees
Industry
Mission
Strategic focus areas
To create a world leading natural
resources company
Values
Trust | Entrepreneurship | Innovation | Excellence |
Integrity | Care | Respect
S1 Continued focus
on world-class
ESG performance
S2 Augment our
Reserves & Resources
(R&R) base
S5 Operational
excellence and
cost leadership
S3 Delivering
growth
opportunities
S4 Optimise capital
allocation and maintain
a strong balance sheet
Our value creation is propelled by
Supported by our business activity
Exploration
Asset development
Extraction
Processing
Value addition and marketing
Megatrends and opportunities
Risks
And influenced by key factors in our operating environment
R1
R5
R3
R2
R4
R6
R7
R10
R8
R9
R11
R13
R12
T1
T5
T3
T2
T4
T6
T7
pg.66
Material issues
M1
M3
M2
M4
M6
M5
M7
pg.92
pg.52
pg.8
pg.2
pg.90
pg.56
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Integrated Thinking at Vedanta
1
OUR VALUE CREATION
ACROSS SIX CAPITALS
FINANCIAL CAPITAL
We ensure a positive impact on the financial capital and create value over time
through strategic efforts in optimising capital allocation, deleveraging and
strengthening the balance sheet and ensuring cash-generative operations. All
investments undergo rigorous review to maximise shareholders’ returns and
attain positive outcomes across all capitals.
MANUFACTURED CAPITAL
We invest in our portfolio of high-quality assets to meet dynamic market demands.
Our commitment extends to acquiring cutting-edge equipment for elevated
operational efficiency, safety performance and stable cash flows. We are currently
undertaking various vertical integrations and expansion projects to bolster reliable
and efficient operations and seize opportunities.
Key FY 2023-24 outcomes
Cash and cash equivalents
`15,421 crore
Net debt
`56,338 crore
EBITDA margin1
30%
ROCE
~23%
Dividend Declared
`29.5 per share
1 Excluding custom smelting at copper business
Key FY 2023-24 outcomes
Business highlights
Steel
Ferro Alloys
Highest-ever crude steel production
1.4 million tonnes
Zinc India
Best-ever mined
metal production
1,079 kt
Record saleable production
Growth capex
80 kt
`12,267 crore
Highest-ever refined
zinc-lead production
1,033 kt
Oil & Gas
Average gross
operated production
128 Kboepd
Iron Ore
Highest-ever production of
saleable ore at Karnataka
5.6 million tonnes
Higest-ever Pig Iron
Production
831 kt
Copper India
Cathode production
from Silvassa
141 kt
Highest ever
silver Production
746 tonnes
Aluminium
Highest-ever
aluminium production
2,370 kt
Power
Overall power
sales
13,443 million units
25% Y-O-Y
8% Y-O-Y
18% Y-O-Y
19% Y-O-Y
Revenue
`1,41,793 crore
EBITDA
`36,455 crore
Net Debt/EBITDA
1.5 X
2% Y-O-Y
3% Y-O-Y
240 bps Y-O-Y
240 bps Y-O-Y
5% Y-O-Y
3% Y-O-Y
5% Y-O-Y
19% Y-O-Y
5% Y-O-Y
2% Y-O-Y
PAT (before exceptional and
one-time gain)
`11,254 crore
Free cash flow (FCF)
post-capex
`11,427 crore
22% Y-O-Y
37% Y-O-Y
Strong Liquidity Position
HIGHLIGHTS FY 2023-24
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Highlights FY 2023-24
2
3
Key FY 2023-24 outcomes
HUMAN CAPITAL
We have a rightly-skilled team, helping us achieve business goals and strengthen
our position as a market-leading natural resources powerhouse. Our investments
extend beyond their skilling to prioritising their health, safety and well-being,
striving to achieve zero harm. Our inclusive policies and practices encourage
independent thinking and creativity, ensuring a workplace where diverse
individuals with unique skills thrive together.
Attrition rate
10.8%
TRIFR - basis Full time employees
1.30
Transgender employees
36
Total Workforce
97,000+
Women employees
20%
Employees covered under mentoring
and support programmes
2,900
INTELLECTUAL CAPITAL
Our collective knowledge, skills and resources are key to ensuring optimal
and sustainable operations and driving our value creation. Our ongoing
investments in innovation, digital transformation and technology help
strengthen our competitiveness and business resilience.
Key FY 2023-24 outcomes
Investment in digitalisation
programmes
`160 crore
R&D Spend
`13 crore
Patents received in FY 2023-24
2
Patents under active application
11
Key FY 2023-24 outcomes
NATURAL CAPITAL
We own world-class mining assets in India and Africa, endowed with abundant
natural resources and reserves (R&R), giving us long-term visibility to sustain
operations. We effectively use these assets to generate significant social and
economic value for our stakeholders. However, our operations also have associated
environmental impacts, which we are striving to minimise by operating responsibly
and investing in environmental stewardship.
Zinc India R&R
Combined R&R
456.3 million tonnes
Zinc-Lead metal R&R
30.8 million tonnes
Silver R&R
854.3 million tonnes
GHG Intensity
5.66 tCO2e per
tonne of metal
Water Positivity Ratio
HVLT waste recycled
0.7x
92%
Trees Planted (As part of the commitment to plant 7 million trees by 2030)
2 million
Zinc International R&R
Combined R&R
662 million tonnes
Metal R&R
34.8 million tonnes
Gross proved, and probable
reserves and resources
1,376 Mmboe
Oil and Gas R&R
SOCIAL AND RELATIONSHIP CAPITAL
We continuously strive to engage and maintain relationships based on mutual
respect and benefit with our stakeholders. These connections help ensure a
positive impact of our business, strengthening our market reputation and uphold
licence to operate. By actively supporting our operations, these relations are
instrumental in executing strategy and enhancing value creation.
Key FY 2023-24 outcomes
Nand Ghars built
6,000+
Total CSR beneficiaries
17.40 million*
Total CSR spent
`438 crore
* including Direct+Indirect Beneficiaries
women and children benefited
from CSR programmes
Youth benefited from
employment-based training
13 million
4,076
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Highlights FY 2023-24
4
5
Bringing to the fore our global operational scale, cost leadership and operational
excellence, we play a pivotal role in facilitating primary materials in a safe,
sustainable and cost-effective manner, enabling resource sufficiency worldwide.
Vedanta is committed to creating enduring value, prioritising social
responsibility, environmental sustainability and business integrity. By integrating
these, we ensure that our growth is inclusive, benefiting all stakeholders from
local communities to international markets.
Core values shape our approach to business and value-creation
Total employment generation
97,000+
tCO2e in avoided emissions
from FY 2020-21 baseline
6 million
Zinc India
R&R
456 million tonnes
Zinc International
662 million tonnes
Oil and Gas
1,376 Mmboe
CARE
RESPECT
INTEGRITY
TRUST
ENTREPRENEURSHIP
INNOVATION
EXCELLENCE
VEDANTA AT A GLANCE
Vedanta Limited, a subsidiary of Vedanta Resources
Limited, is the world’s foremost natural resources
conglomerate, with strategic assets in India, South Africa
and Namibia. Our extensive operations span zinc-lead-
silver, iron ore, steel, copper, aluminium, power, nickel, and
oil and gas, with a market-leading position across most.
INDIA’S LARGEST AND
GLOBALLY LEADING
NATURAL RESOURCES
POWERHOUSE
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Vedanta at a Glance
7
6
Our value chain
Exploration
Processing
Asset development
Value addition
Extraction
We undertake brownfield
and greenfield activities to
consistently enhance our
Reserves and Resources
(R&R) and thus extend
the lives of our existing
mines and oilfields.
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. We also generate
captive power with minimal
environmental impact to
support our operations and
sell any surplus power.
We have a proven track record
of executing projects on
time and within budget. We
implement targeted measures
to develop the resource base,
helping optimise production
and increase the lifespan of
our resources. We also have
strategic processing facilities.
We address market
demand by converting
the primary metals (zinc,
aluminium and copper)
produced at our facilities
into value-added products
such as sheets, rods, bars,
rolled products, etc.
Our operations are focussed
on the exploration and
production of metals,
extraction and production
of oil and gas across three
operating blocks, and power
generation. We extract metals
like zinc-lead-silver, iron ore,
steel, copper and aluminium.
ESG PURPOSE AND MISSION
TRANSFORMING FOR GOOD
Commitments and targets
Transforming communities
Transforming the planet
Transforming the workplace
Aim 1
Keep community welfare as the guiding
principle for our business decisions
Aim 2
Empower 2.5 million individuals with
enhanced skillsets
Aim 3
Uplift 100 million women and children
via social welfare interventions
Aim 4
Net Zero Carbon by 2050 or sooner
Aim 5
Achieving net water positivity by 2030
Aim 6
Enhance our business model
by incorporating innovative
green practices
Aim 7
Prioritise the safety and health
of our workforce
Aim 8
Promote gender parity, diversity
and inclusivity
Aim 9
Align with global standards of
corporate governance
Operating structure
Our diversified structure and wide geographic presence enable efficient operations and serviceability
As of 31 March 2024
* Skorpion -100% BMM & Gamsberg – 74%
** 50% of the share in the RJ Block is held by
a subsidiary of Vedanta Limited
Listed entities
Unlisted entities
Vedanta Resources
Limited
Divisions of Vedanta Limited
Sesa Iron Ore
Sterlite Copper
Power (600 MW
Jharsuguda)
Subsidiaries of Vedanta Ltd.
Vedanta
Limited
61.95%
64.9%
Hindustan
Zinc (HZL)
51%
Bharat
Aluminium
(BALCO)
100%
Zinc
International*
100%
Talwandi
Sabo Power
(1,980 MW)
95.5%
ESL Steel
Limited
99.99%
Ferro Alloy
Corporation Ltd.
(FACOR)
Aluminium
(Odisha Aluminium and power assets)
Cairn Oil & Gas**
Athena
100%
Meenakshi
Energy Limited
(1000 MW)
100%
Vedanta
Displays
Limited
100%
Vedanta
Semiconductors
Pvt Limited
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
ESG Purpose and Mission
9
8
Integrated Report and Annual Accounts 2023-24
VEDANTA LIMITED
PRESENCE
STRONGER
FOOTPRINT ACROSS
STRATEGIC GLOBAL MARKETS
Indian
7 Ireland
Lisheen Mine
5 UAE
Fujairah Gold
6 East Asia
Glass
4 Namibia
Skorpion Mine
1 India
Multiple
COPPER
CAPTIVE
POWER PLANT
IRON ORE
STEEL
CEMENT
ALUMINIUM
GLASS
ZINC
MET COKE
NICKEL
POWER
MULTIPLE
OIL & GAS
PORT
FERRO
ALLOYS
Note: Lisheen Mine had safe, detailed and fully costed closured after 17 years of operation in Nov’2015.
Maps not to scale
Zinc & Silver
Amongst the largest fully integrated
zinc-lead producers and 5th largest
silver producer globally
FY 2023-24 EBITDA
` 13,562 crore
Zinc India
` 693 crore
Zinc International
Key Highlights
1
Lanjigarh
Aluminium (VAL) & Captive Power Plant
2
Jharsuguda
Aluminium (VAL), Commercial Power
(SEL), Captive Power Plant & Projects
under development
3
Korba
Aluminium, Captive Power Plant &
Projects under development
4
Talwandi Sabo
Power (TSPL)
5
Salem
Power (MALCO)
6
Goa
Iron Ore (Sesa Goa) |
Nickel (Sesa Nickel) |
Cement (Sesa Cement) | Pig Iron
7
Karnataka
Iron Ore (Sesa Goa Operations)
8
Debari
Zinc-Lead-Silver
9
Chanderiya Dariba Zinc-Lead-Silver
10
Rampura Agucha
Zinc-Lead-Silver
11
Rajpura Dariba Mine & Smelter And Sindeswar Khurd Mine
& Captive Power Plant
Zinc Lead-Silver
Oil & Gas
One of India’s largest private
sector crude oil producer
FY 2023-24 EBITDA
` 9,777 crore
Iron Ore & Steel
One of the largest private sector
exporter of iron ore in India
FY 2023-24 EBITDA
` 2,016 crore
Aluminium
Largest capacity in India and
9th largest capacity globally
FY 2023-24 EBITDA
` 9,657 crore
12
Zawar Mine
Zinc-Lead-Silver & Captive
Power Plant
13
Vizag
Zinc-Lead-Silver
14
Mangala
Oil & Gas
15
Ravva
Oil & Gas
16
Cambay
Oil & Gas
17
Bokaro
Steel
18
Bhadrak
Ferro Alloys, Chrome ore mines
19
KG Onshore &
Offshore
Oil & Gas
20
Gujarat
Met Coke
21
Vazare
Met Coke
22
Barbil
Iron Ore Odisha
23
Vizag
Port (VGCB)
24
Silvassa
Copper
25
Tuticorin
Copper, Captive Power Plant
Global
1
7
3
4
2
6
5
1
25
2
6
3
4
5
7
8
12
13
14
15
16
17
18
20
21
23
24
22
19
14
9
10
11
2 South Africa
Black Mountain Mine
Gamsberg
3 Liberia
Iron Ore Project
Western Cluster
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Presence
10
11
ASSET OVERVIEW
STRENGTH IN DIVERSITY
AND MARKET LEADERSHIP
ZINC-LEAD-SILVER
75% market share in India’s primary zinc
market (Hindustan Zinc Limited)
Asset Highlights
World’s largest underground zinc-lead mine at Rampura
Agucha, India
3rd largest silver producer in the world
Zinc India has an R&R of 456 million tonnes with a mine
life of 25+ years
Zinc International has an R&R of more than 662 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 (2023)
Application Areas
Galvanising for infrastructure and construction sectors
Die-casting alloys, brass, oxides and chemicals
Application Areas
Power systems, automotive sector, aerospace, building
and construction, packaging
ALUMINIUM
Largest primary aluminium
producer in India
Asset Highlights
Largest aluminium installed capacity in India at 2.4 MTPA
Integrated 5.5 GW Power & 3.5 MTPA Alumina refinery
45% market share in India among primary aluminium
producers
Diverse product portfolio – ingots, wire rods, primary
foundry alloy, rolled products, billet and slab
EBITDA
` 9,657 crore
EBITDA
(Zinc India)
` 13,562 crore
(Zinc International)
` 693 crore
Production Volume
Zinc
817 kt
Lead
216 kt
Silver
746 tonnes
Zinc India
MIC
208 kt
Zinc International
Production Volume
Aluminium
2,370 kt
Alumina
1,813 kt
Zinc India (HZL), Zinc International
Business
Aluminium smelters at Jharsuguda &
Korba (BALCO)
Alumina refinery at Lanjigarh
Business
OIL & GAS
Asset Highlights
First Field Development Plan (FDP) approved under OALP regime
for Jaya field. Production commenced with initial plan to deliver
> 3 Kboepd. This is the first FDP approved in OALP regime, among
144 blocks awarded under 8 OALP rounds by the Government to
various companies.
World’s longest continuously heated pipeline from Barmer to
Gujarat Coast (~670 kms)
Infill drilling in Rajasthan (Mangala, Bhagyam, Aishwariya, Tight Oil
(ABH), Tight Gas (RDG) and Satellite Field to augment reserves and
mitigate natural decline
Drilling commenced in North-East region to explore the prospects in
this region
Executed one of the largest polymers EOR projects in the world
Footprint over a total acreage of c. 60,000 square kilometres
Gross 2P reserves and 2C resources of 1,376 Mmboe
Application Areas
Crude oil is used by hydrocarbon refineries.
Natural gas is mainly used by the fertiliser sector.
EBITDA
` 9,777 crore
Average daily gross
operated production
128 Kboepd
(Average Participating
Interest production of
82 Kboepd)
Cairn India
Business
POWER
11 GW total power portfolio.
4.8 GW of installed IPP capacity.
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
Upcoming 1,000 MW Meenakshi (by FY 2024-25) and
1,200 MW Athena (by FY 2025-26) thermal power plants at
Andhra Pradesh and Chhattisgarh respectively
Application Areas
Commercial power backed by power purchase agreements
Captive use
EBITDA
` 971 crore
Power sales
13,443
million units
Power assets at TSPL (1,980 MW) at
Talwandi Sabo, Jharsuguda (600 MW of IPP),
Korba (600 MW of IPP) & Lanjigarh
Business
*including captive power generation
Operates ~25% of India’s crude oil production
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Asset Overview
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1. Hot metal design capacity
IRON ORE
STEEL
3.5 MTPA design capacity1
Asset Highlights
Design capacity of 3.5 MTPA
Largely long steel products
Highest-ever hot metal production of 1,473 kt
Highest-ever DIP production of 212 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
One of the largest merchant iron ore
miners in India and one of the largest
producers and exporters of merchant
pig iron in India
Asset Highlights
Karnataka Iron ore mines with R&R of 75 million tonnes and
life of 9 years
Goa Iron Ore mines; R&R of 55.7 million tonnes and mines
life of 18 years
Value-added business: 3 blast furnaces (0.96 MTPA), 2 coke
oven batteries (0.52 MTPA) and 2 power plants (65 MW)
WCL mine R&R: 249 million tonnes
Coke-Vazare: One merchant coke plant of capacity
0.1 MTPA
Application Areas
Essential for steel making
Used in construction, infrastructure and automotive sectors
EBITDA
` 1,676 crore
Production Volume
Pig iron
831 kt
5.6 million DMT
highest annual saleable
ore production
Iron Ore Karnataka
EBITDA
` 225 crore
Iron Ore Business
Business
ESL Steel
Business
FACOR
145 KTPA charge chrome/ferro chrome
capacity with 100 MW power plant;
290 KTPA chrome ore mining capacity
Asset Highlights
Osthpal mines have 240 KTPA mining capacity
45 MVA Charge chrome plant of 80 KTPA, 33 MVA
Charge chrome plant of 65 KTPA and captive power
plant of 100 MW
Application Areas
Used for making stainless steel, carbon steel,
ball‑bearing steels, tool steels and other alloy steels
EBITDA
` 115 crore
Production Volume
80 kt
Ferro Alloys Corporation Ltd
Business
COPPER
One of the largest copper
production capacity in India
Asset Highlights
Tuticorin smelter and refinery are currently not
operational
Tuticorin Smelter Capacity: 400 KTPA
Silvassa Refinery Capacity: 216 KTPA
Production Volume
141 kt
Cathode
Copper India
Business
Production Volume
Steel
1,386 kt
Application Areas
Used for making cables, transformers, castings, motors
and alloy-based products
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OUR INVESTMENT CASE
BUILT ON A SOLID,
VALUE-ACCRETIVE
FOUNDATION
The Indian economy is poised for robust growth, which alongside the emphasis on
digitalisation and greener economy is set to boost the demand for metals and minerals.
Vedanta, being the country’s largest and most diversified natural resources company,
will play a pivotal role in this transformative journey. We have large scale, cost‑efficient
and highly-productive operations, coupled with a solid financial foundation and
strategic, forward-thinking investments. These alongside our commitment to
sustainability and innovation, ensure that we have all the essential building blocks to
address the nation’s evolving needs and create value for all stakeholders.
Strengths powering our long-term success
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 and
benefit through the cycle with an
attractive commodity mix
Proven track record of operational
excellence with high productivity and
consistent utilisation rates
Focussed on digitalisation and
innovation to drive efficiency
and resilience
Disciplined capital allocation
framework with emphasis on superior
and consistent shareholder returns
Robust financial profile with
strong ROCE, increasing EBITDA
and a stronger balance sheet
Committed to ESG
leadership in the natural
resources sector
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FINANCIAL STATEMENT
STATUTORY REPORTS
16
17
Indian economy, on the back of significant infrastructure
investment and the government’s focus on
manufacturing and urbanisation, is growing rapidly. This
alongside the emphasis on a green economy, electronics
and digitalisation is likely to push the per capita metal
consumption, presently below the global average.
Expectation of healthy economic growth at 8.6% CAGR
during 2022-2030 augurs well for the minerals demand.
Vedanta has an extensive and
diversified asset portfolio, which is
characterised by global cost leadership
in several core businesses enabling
superior margins and free cash flow
generation across the commodity
cycle. With ongoing investments
in capacity creation and efforts
for structural cost reduction and
operational efficiency, we continue to
reinforce our cost competitiveness. Our
robust commodity mix, focussed on
base metals and oil, that have strong
fundamentals and robust demand
further gives resilience to our business.
Vedanta’s operations, being primarily India-focussed, are
poised to benefit from the economic momentum. The
following advantages position us uniquely in this market:
Leadership position as India’s largest base metals and oil
(private sector) producer
Extensive and scalable portfolio of commodities aligned
with the nation’s needs
Expert team with extensive Indian market experience,
including project execution and fulfilling demand
Iron and Steel
Power
13 MTPA
Iron Ore Mines:
Karnataka Mines
Goa Mines
WCL
1,980 MW
TSPL
600 MW
JSG IPP
Copper
216 KTPA
Silvassa Refinery
400 KTPA
Tuticorin
Aluminium
Oil and Gas
1.8 MTPA
Jharsuguda Smelter
0.6 MTPA
BALCO Smelter
Total Acreage:
Footprint > 60,000
square km
Demand 2023-2030 CAGR
Aluminium
Global Demand
India Demand
Zinc
Oil & Gas
Iron Ore
Finished
Steel
Copper
Nickel
2%
1.7
0.9
0.5
1.3
8.7
4.0
1.7
4.6
27.8
10.7
4.7
3.9
9%
7.5%
1.9%
4.2%
1.3%
4.5%
0.1%
5.2%
0.8%
8.5%
3.1%
6%
5.4%
Source: Wood Mackenzie, IHS Markit, OPEC World Oil Outlook 2023
Note: All commodities demand correspond to primary demand; figures are for 2023
Aluminium consumption
(Kg/capita)
Copper consumption
(Kg/capita)
Zinc consumption
(Kg/capita)
Oil consumption
(boe/capita)
India
India
India
India
Global
Global
Global
Global
China
China
China
China
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
and benefit through the cycle with an attractive commodity mix
Vedanta continued its strong growth momentum and witnessed steady volume augmentation and cost reduction across key
businesses, with aluminium and Zinc, Steel, Iron Ore, Pig Iron, Ferrochrome businesses delivering record performance.
Aluminium Cost (US$/t)
Zinc India Cost (US$/t)
1QFY23
2,653
2Q(Δ)
(224)
3Q(Δ)
(280)
4Q(Δ)
(90)
1Q(Δ)
(127)
2Q(Δ)
(118)
3Q(Δ)
(79)
4Q(Δ)
(24)
4QFY24
1,711
3QFY23 4Q(Δ)
1Q(Δ)
2Q(Δ)
3Q(Δ)
4Q(Δ) 4QFY24
1,293
(79)
(20)
(57)
(42)
(44)
1,051
Asset Base
Cost Position
3.5 MTPA
Lanjigarh Refinery
5.5 GW
Captive Power
3.6 MPTA
Coal mines
Zinc-Lead-Silver
HZL
1,123 KTPA
Smelter Capacity
456 million tonnes
Mine R&R
587 MW
Captive Power
Zinc International
325 KTPA MIC
BMM and Gamsberg Mine
R&R:
Gross 2P reserves and 2C
resources of 1,376 Mmboe
Primary Oil fields:
Mangala, Ravva, Cambay,
KG - On/Offshore
1 MTPA
Pig Iron Capacity
1.5 MTPA
Steel Capacity
150 KTPA
FACOR Capacity
1,200 MW
Athena
1,000 MW
Meenakshi
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19
We have a track record of consistently
delivering phenomenal production
growth across our assets. We
ensure this through our disciplined
approach to development, ensuring
* All commodity and power capacities rebased to copper equivalent capacity (defined as production x commodity price/copper price) using
average commodity prices for FY 2023-24. Power rebased using FY 2023-24 realisations, Copper custom smelting production rebased at
TC/RC for FY 2023-24, Iron ore volumes refer to sales with prices rebased at realised prices for FY 2023-24
India Growth Potential
4.1
2,400
1.4
36
7.5
4,000
1.5
40
GDP (Real)
(US$ trillion)
Per capita income
(Real) (US$)
Population
(billion)
Urbanisation
(%)
2023
2023
2023
2023
2030
2030
2030
2030
India mineral reserves ranking globally
Source - IHS Markit
Source: USGS Mineral Commodity Summaries 2022, OPEC Annual Statistical Bulletin 2023
9%
CAGR
7.7%
CAGR
0.8%
CAGR
3.8%
CAGR
7th Zinc
Reserves: 7.4 million tonnes
8th Iron ore
Reserves: 5.5 billion tonnes
9th bauxite
Reserves: 660 million tonnes
Oil
Reserves: 4.4 billion barrel
Total Production Copper Equivalent (kt)
1,800
FY2004
FY2005
FY2006
FY2007
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
FY2015
FY2016
FY2017
FY2018
FY2019
FY2020
FY2021
FY2022
FY2023
FY2024
1,600
1,400
1,200
1,000
800
600
400
200
0
10x or ~13% CAGR
Production Growth against
India’s GDP of 7%
Zinc-Lead
Silver
Copper
Aluminium
Steel
Power
Iron Ore
Oil & Gas
Focussed on digitalisation and innovation to drive
efficiency and resilience
Proven track record of operational excellence with high
productivity and consistent utilisation rates
steady production growth across
operations while prioritising
efficiency and cost savings. We
further leverage our management
team’s extensive sectoral and global
experience alongside investments
in digitalisation, automation and
vertical integration, to operate
efficiently and responsibly.
Vedanta has been at the forefront of digitalisation, adopting
a digital-first culture that ensures sustained technology
innovation and digital literacy of the entire workforce.
Enabled by this, we have successfully implemented an
organisation-wide digital transformation. This includes
ongoing investments in advanced Industry 4.0 technologies
like deploying Digital Twin and Advanced Process Control, to
enhance operational efficiency.
We are among the few companies to deploy cutting-
edge digitalisation at mines, which ensures highly
efficient and safe remote operations. We further
collaborate with established startups and partners
to implement cutting-edge digital solutions. These
efforts have contributed to volume gains and cost
optimisation, contributing to EBITDA improvement.
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21
Our robust capital allocation policy supports
achieving our long-term growth and optimal
shareholder returns objectives. The policy
aligns three key areas of capital expenditure,
dividend policy and selective inorganic growth.
Guided by consistent, disciplined and balanced
capital allocation, it ensures long-term balance
sheet integrity, optimal leverage management
and maximisation of total shareholder returns.
It is a result of this, Vedanta has been able
to commit substantial capex investment and
pay high dividends to shareholders, without
stressing the balance sheet.
We have a proven track record of delivering
consistent growth across all financial
parameters, driven by sustained investment
in new capacities and operational
efficiencies, which have strengthened
our financial foundation. In FY 2023-24,
despite market volatilities, we maintained a
resilient performance:
Revenues of ` 1,41,793 crore and EBITDA
of ` 36,455 crore
Strong ROCE of ~23%
Ensured commitment to deleveraging
despite significant capex
Strong and robust FCF (Post Capex) of
` 11,427 crore
Cash and liquid investments of
` 15,421 crore
Interim dividend of ` 18,572 crore paid
Disciplined capital allocation framework with emphasis
on superior and consistent shareholder returns
Robust financial profile with strong ROCE, increasing
EBITDA and a stronger balance sheet
Aiming to spend US$ 5 billion
in the next decade targeting to
reduce absolute emissions by 25%
by 2030 (from the 2021 baseline)
and eventually progress towards
Net Carbon neutrality by 2050.
Towards this, we have set goals to
have 2.5 GW of RE RTC (838 MW
under construction) by 2030 and
decarbonising 100% of our Light
Motor Vehicle (LMV) fleet by 2030
and 75% of our mining fleet by
2035. We further continue to take
measures like promoting operational
efficiency, changing fuel mix and
exploring the potential for green
product development.
Making steady progress across
various other ESG targets including
water positivity (currently 0.7x) by
2030, uplifting 100 million (currently
17.4 million) women and children,
empowering 100 million families
(currently 1.4 million) with enhanced
skill sets
Ensuring a diverse and inclusive
workplace, with 20% women
representation and 36 members
from the transgender community
Enhancing workplace safety with
the implementation of critical risk
management across the business
Maintaining transparent and
complete disclosures, beyond
regulatory, by aligning with
international frameworks and
standards like GRI, TCFD etc.
Committed to ESG leadership in the
natural resources sector
Capital
Allocation
Mergers &
Acquisition
Dividend
Capital
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23
MESSAGE FROM THE CHAIRMAN
INVESTING IN A
BETTER TOMORROW
In today’s ever‑evolving
world, where transformation
is key, we understand the
imperative to continuously
transform for good
and invest in tomorrow
to outperform
The commissioning of Train 1 at Lanjigarh refinery, adding
1.5 MTPA of capacity, marks a significant milestone, and
other projects are steadily progressing.
DEAR STAKEHOLDERS,
It’s with immense pride that I reflect on another remarkable year in Vedanta’s evolution
as a world-class Indian multinational. As we embark on the next stage of our multi-year
growth trajectory, aimed at unleashing value for all stakeholders, I extend my deepest
gratitude to each of you. You are the pillars of our success, propelling us towards building
a futuristic organisation rooted in India’s progress.
In today’s ever-evolving world, where
transformation is key, we understand
the imperative to continuously
transform for good and invest in
tomorrow to outperform. Join me as I
unveil our vision for the next phase of
growth, building a Stronger Vedanta
– a value-focussed, future-ready, and
purpose-driven institution that will
stand the test of time.
Vedanta for a progressive
India
India, under the leadership of a
visionary government, is on an
expressway of progress. The optimism
surrounding the Indian economy
is unparalleled, fuelled by robust
manufacturing activity, thriving private
consumption and commendable
strides in infrastructure development.
The buoyancy observed in the stock
markets and the influx of foreign direct
investments solidify India’s rise as a
global power and a critical long-term
market. The estimated GDP growth
of ~8.2% in FY 2023-24 supports
the narrative of India’s flourishing
growth trajectory.
Going by the prevailing macro
indicators, India’s growth momentum
is poised to further accelerate in
the years ahead. The government’s
manufacturing and infrastructure push
and aggressive investments in the
green economy are catalysing a new
era of progress and development for
the country. International Monetary
Fund forecasts the Indian economy
to grow the fastest and ascend to
the world’s third-largest economy
position by 2027, with GDP expanding
at a projected CAGR of ~7% during
2023-2030. The dream of witnessing
India enter a golden era once again
is within reach.
As the economic growth engine
gathers steam, the demand for
commodities is set to surge. Equipped
with a unique portfolio, ranging from oil
and gas to essential metals, Vedanta
is strategically positioned to seize the
momentum, while aiding the nation’s
goal of reaching a US$ 30 trillion
developed economy by 2047 and
achieving self-reliance. Our recent
foray into Electronics and display
business exemplifies our commitment
to India’s vision of self-sufficiency in
chip-making. This exciting venture
opens doors to the thriving Indian
electronics market, predicted to grow at
a staggering 43% CAGR between 2023
and 2026, reaching a monumental
US$ 300 billion.
Looking ahead, our unwavering
commitment to substantial capex
projects worth US$ 6 billion for
expanding our capacities across the
businesses and achieving vertical
integration in Aluminium business will
be a cornerstone of our future growth.
The commissioning of Train 1 at
Lanjigarh refinery, adding 1.5 MTPA of
capacity, marks a significant milestone.
Other projects Aluminium, Zinc India,
Iron and Steel and Ferrochrome
businesses are steadily progressing.
We are on track to produce 90%
value‑added aluminium products
and alloys and securing 100% captive
alumina, bauxite and coal supplies
along with 3 MTPA aluminium.
Furthermore, we are actively pursuing
various strategic initiatives to unlock
the immense value within our
diversified conglomerate, positioning
ourselves for continued success in
evolving market landscapes.
Unleashing value through
demerger
As a visionary organisation, Vedanta
has always changed for the better.
Having built a US$ 50 billion diversified
conglomerate over four decades, we
now aim to propel our journey with the
proposed demerger of business into
six independent, pure-play companies.
This strategic move will simplify the
corporate structure, unlock greater
value and attract targeted investment
for the expansion and growth
of each business.
The demerger will be a simple vertical
split, with shareholders receiving
one share in each demerged listed
company for every share of Vedanta
Limited they hold. Each entity will have
Anil Agarwal
Chairman
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25
greater freedom to grow to its potential,
led by independent management,
capital allocation and niche strategies
as per their customers, investment, and
end markets. Our goal is to see each
entity replicate the success of today’s
Vedanta Limited.
Strategic finance
management
We are committed to financial
prudence and fortifying our capital
management framework to proactively
meet the expectations of our investor
community. I would like to bring your
attention to the significant progress our
holding company Vedanta Resources
has made in reducing debt, having
deleveraged by US$ 3.7 billion in last
two years against our commitment
of US$ 4 billion in three years. Thanks
to your overwhelming support,
Vedanta Resources also successfully
restructured its outstanding bonds
totalling US$ 3.2 billion, extending
their maturity up to FY 2028-29 and
easing off the liquidity pressure. This
newfound liquidity flexibility allows us
to channel cash flows to important
capex projects. Furthermore, we expect
Our water positivity ratio improved
to 0.7 during the fiscal, with 2.7%
reduction in freshwater consumption.
In our commitment to diversity, equity
and inclusion, women’s representation
improved to 20% in FY 2023-24,
enabled by programmes to place them
in STEM and leadership roles. We are
proud to have expanded our definition
of diversity beyond gender, with more
than 36 members from the transgender
community now part of the Vedanta
team. A revolutionary parenthood
policy was introduced for women and
LGBTQIA+ employees to emphasise
that parenthood is not a challenge for
professional life but a transformative
phase. The policy allows options for
maternity leave, work from home,
flexible working hours and even a
12-month sabbatical with job security.
As you are aware, we follow extremely
focussed CSR policies as part of our
community support programme.
During the year, our efforts benefited
nearly 17.4 million women and children
the monetisation of our steel and raw
materials business, to be completed in
the first half of FY 2024-25.
These decisive moves demonstrate
our commitment to a debt-free
and value‑accretive future for
our stakeholders.
Performance
In FY 2023-24, India stood out
globally as a market characterised
by both growth and stability. Our
team, backed by strong leadership,
did a commendable job in capturing
the opportunity, despite commodity
prices exhibiting mixed performance,
influenced by global market dynamics
and sector-specific demand trends.
Through a sharp focus on operational
performance, strategic investments
and commitment to innovation and
sustainability, we achieved significant
success. Our financial report reflects
this, with revenues reaching ` 1,41,793
crore and EBITDA at ` 36,455
crore. Notably, we also generated a
healthy free cash flow (post capex)
of ` 11,427 crore, indicating the
strength of operations.
across India. The second edition of
the Vedanta Delhi Half Marathon set
yet another milestone, as a record
35,000+ participants ran in support
of the #RunForZeroHunger cause,
raising 5 million meals for children in
the process. This is a true example of
the immense power of participative
sport to bring together people from all
walks of life for fun, fitness and, most
importantly, a cause.
Ethics, good governance and
transparency are core to Vedanta’s
business values and integral to its
ESG philosophy. During the year, we
continued our track record of paying
one of the highest dividends (` 50 in
FY 2023-24) and being among the
top taxpayers in India (` 54,402
crore in FY 2023-24). We also made
considerable efforts towards enhancing
transparency – a testament to our
commitment to responsible practices.
This is evident in Vedanta’s alignment
with multiple global frameworks and
publication of disclosures beyond
statutory requirements.
Investing in ESG for a
sustainable future
As a responsible corporate committed
to sustainable development, ESG
remains central to Vedanta’s growth
plans and investments. Our efforts
continued to yield tangible outcomes
during the year under review. I am
thrilled to announce some big wins in
the S&P Global Corporate Sustainability
Assessment 2023. Vedanta and
Hindustan Zinc Limited (HZL)
secured the third and first positions
respectively in the metal and mining
sector, becoming the only two Indian
companies in the top 10. Additionally,
Vedanta Aluminium took the top
spot in its aluminium peer group. The
accomplishment reflects Vedanta’s
unwavering commitment to sustainable
business practices and responsible
corporate citizenship, led by our
Transforming for Good ESG strategy.
Vedanta’s exceptional progress on
various ESG goals during the year
was witnessed in other milestone
achievements. Advancing towards
net zero, we have begun construction
for 838 MW of renewable energy
round‑the-clock (RE RTC). We have
rolled out industry-leading policies,
such as an EV purchase policy
for all our employees, and all our
business units have plans in place
to ensure 100% light mobility vehicle
electrification by 2030. Jharsuguda unit
and HZL have also begun trials for the
electrification of heavy mobility and
other vehicles from the mining fleet.
On a steady path to progress
As we move ahead, we will endeavour
to continue pursuing the path of steady
and progressive performance, which
we have stayed consistently on through
the years. While we can look back with
pride on our accomplishments and
initiatives, it is the future that we are
more excited about.
FY 2024-25 will be a transformative
year for Vedanta on many fronts.
The expected completion of most
expansion projects and the focus
on disciplined growth, operational
excellence and exploring opportunities
along the value chain, position us for
greater success on all fronts including
volumes, revenue, cost efficiency and
bottom line. Beyond that, we have
set targets that reflect our pursuit
of sustainable growth and further
improving our balance sheet integrity.
We seek to further deleverage Vedanta
Resources by US$ 3 billion over the
next three years. Our team is energised
and the fundamentals supporting the
sectors in which we operate remain
robust, providing an optimistic outlook.
We believe that the key growth projects
that are on the horizon, along with the
expected acceleration in commodity
prices, will drive future profitability.
On behalf of the entire Board, I
extend my heartfelt gratitude to all
the stakeholders for their continuous
support, the driving force behind our
success. Vedanta remains committed
to executing strategic priorities to
create long-term value for all.
Best regards
Anil Agarwal
Chairman
Over the past two years, we have deleveraged Vedanta
Resources by US$ 3.7 billion against our commitment of
US$ 4 billion in three years.
During the year, we continued our track record of
distributing one of the highest dividend and being
on the highest taxpayers in India (`54,402 crore) in
FY 2023‑24).
EBITDA
` 36,455 crore
REVENUE
`1,41,793 crore
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Message from the Chairman
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27
MANAGEMENT SPEAK
UNLOCKING
SUSTAINABLE GROWTH
Arun Misra
Executive Director
Ajay Goel
Chief Financial Officer
Vedanta delivered an outstanding
performance in FY 2023‑24. We achieved
record production across key businesses
led by a consistent focus on operational
excellence. Financial results were equally
impressive with the second-best annual
revenue and EBITDA, and strong margins
even in a challenging commodity market led
by cost optimisation efforts. The year also
saw us complete various capex projects,
embark upon strategic initiatives and
advance sustainability efforts. Headed into
the future, Vedanta is on a stronger footing,
ready to seize new opportunities and secure
predictable long-term growth, aligned with the
interests of the nation and the stakeholders.
Amidst dynamic markets, Vedanta
delivered outstanding financial
results driven by a commitment to
operational excellence, continued
cost optimisation, disciplined capital
allocation and liabilities management.
These efforts fuelled growth and
margin expansion while fortifying
our financial framework, business
resilience and long-term sustainability.
we remain on track to meeting our
priorities of delivery, deleveraging and
demerger in FY 2024-25 to maximise
growth, profitability and value creation
for stakeholders.
FY 2023-24 was marked by headwinds in
commodities demand and prices. How did Vedanta
navigate the challenges to ensure meeting the demand
while maintaining stability?
Reflecting on the strong performance delivered
in FY 2023-24, could you provide an overview of
Vedanta’s achievements and milestones during the period?
becoming the third-largest Silver producer globally. Sustained
cost reduction efforts over five consecutive quarters led to
a US$ 242 per tonne decline in COP to US$ 1,051 per tonne
in Q4 FY 2023-24. The average COP for FY 2023-24 was
US$ 1,117 per tonne, resulting in a segmental EBITDA of
` 13,562 crore. Zinc International faced the challenge of lower
ore mining, recording a mined metal production of 208 kt,
including 147 kt at the Gamsberg mine and 61 kt at BMM.
The Oil & Gas business produced 128 Kboepd with an
OPEX of US$ 13.9/boe. A significant development was the
submission of the country’s first field development plan for
the OALP field Jaya.
The iron ore Karnataka (IOK) mines achieved highest-ever
annual sales of 5.9 million tonnes, a 19% increase over the
previous year due to improvement in logistics efficiency. Pig
iron production was highest-ever at 831 kt, growing by 19%.
We also operationalised the 3 MTPA Bicholim mine in Goa,
marking the commencement of the first mining operation
in the region in nearly six years. FACOR recorded the
highest‑ever Ferrochrome production of 80 kt, an increase
of 18% over the previous year. Copper business production
stood at 141 kt with contributions from India and Fujairah.
Our power plants sold 13,443 million units of electricity,
becoming one of the largest commercial power suppliers to
the national grid.
ESL Steel achieved its highest-ever saleable production and
dispatches at 1.39 million tonnes each, a growth of 8% and
11% respectively. The business consumed the highest-ever
captive iron ore from its fully ramped-up iron ore mines
acquired last year.
The strong all-round operational performance resulted
in second-ever highest revenue from operations and
EBITDA of ` 1,41,793 crore and ` 36,455 crore respectively.
Cost efficiency measures, particularly in the Zinc and
Aluminium businesses, helped mitigate the impact of
weak commodity prices, bolstering EBITDA margins by
240 basis points to 30%. RoCE also increased by 240 basis
points to 23%. PAT was lower 22% to ` 11,254 crore driven
by one time MAT write off. The performance reflects our
adeptness in navigating headwinds and capitalising on
growth opportunities.
Vedanta delivered an excellent set of performances
in FY 2023-24, despite the volatility in the
commodity markets. We maintained our leadership
position in cost of production while expanding volume
across businesses. The Aluminium and Zinc businesses
remained among the lowest‑cost producers globally with
first-quartile and first‑decile positions in their respective
global cost curves.
Coming to individual performances, the Aluminium business
delivered the highest-ever metal production of 2,370 kt, a
growth of 3% over the previous year. Seven consecutive
quarters of aggressive cost reduction drove down the cost
of production (COP) by US$ 942 per tonne to US$ 1,711 per
tonne in Q4 FY 2023-24. The average COP for the year stood
at US$ 1,796 per tonne, resulting in a 67% growth in the
Aluminium segment EBITDA of ` 9,657 crore for FY 2023-24.
Zinc India delivered outstanding all-round performance.
It recorded an all-time high annual mined metal production
of 1,079 tonnes, a 2% increase over the previous year. Silver
production was highest-ever at 746 tonnes, up 5% over the
previous year. This translated into a feat of Hindustan Zinc
The Indian economy demonstrated resilience
in FY 2023-24, emerging as a major growth
contributor amidst global uncertainty. Substantial
investments in physical and digital infrastructure, alongside
the emphasis on manufacturing and capital expenditure,
shaped the nation’s growth narrative.
As for the commodities market, FY 2023-24 was dynamic.
Demand for commodities like aluminium, zinc and iron ore
was robust. Prices though experienced volatility influenced
by global dynamics, geopolitical developments and
sector‑specific demand patterns. The average LME prices of
aluminium and zinc fell by 11% and 25% year-on-year.
Vedanta stood firm, supported by a portfolio aligned with the
nation’s growth and infrastructure development needs while
adapting to market shifts with agility. Our sharp focus on
operational excellence and commitment to cost leadership
allowed us to navigate commodity price fluctuations.
Through continuous optimisation of production processes,
strategic sourcing and adaptability, we significantly reduced
our costs. This ensured strong margins alongside consistent
delivery of high-quality products to customers. The teams
also did a fantastic job in meeting the rising commodity
demand, resulting in robust operational performance and
surplus cash generation across businesses.
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Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
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Management Speak
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Vedanta is committed to maximising value
creation for its stakeholders. Can you share how
the Company delivered on this objective in FY 2023-24?
What specific measures were taken to strengthen
the cost leadership position in Aluminium and
generate 1,000 US$/t of EBITDA margin?
This strategic move not only enhances
the current bond structure of Vedanta
Resources but also offers attractive terms
for our bondholders. The initiative comes in
addition to the balance sheet deleveraging
by over US$ 3.7 billion in the last two years
which brought down debt to US$ 6 billion
as of 31 March 2024.
surfactant flood. Phase 1 is on track, with incremental
production expected in Q1 FY 2024-25. For FY 2024-25, we
plan to execute a 10-well exploration campaign in Assam
and mobilise rigs to our east and west coast assets for
multi-year drilling programmes. The power business is
synchronising Unit 1 of the 150 MW Meenakshi Power Plant,
which alongside securing financing for Athena takes us a
step closer to delivering on our goal of supplying ~5 GW of
commercial power within the next two years.
The iron ore business is poised for a production ramp-up
to 12 MTPA, complemented by 1 MTPA of value-added
business (VAB). This comes with the recent commissioning
of Bicholim mines of 3 MTPA capacity, securing environment
clearance for expanding IOK to 7.2 MTPA and efforts to
ramp-up in Liberia operations from 1 MTPA to 2.5 MTPA. The
steel business is on track to expand capacity to 3.5 MTPA in
FY 2024-25. Steel and VAB expansion, together will enable us
to produce 4.5 MTPA of steel and pig iron in our facilities.
In FACOR, the Board has approved a capex of ` 2,650 crore
for expanding ferrochrome capacity from 150 KTPA to
450 KTPA, which will make us India’s largest ferrochrome
producer by FY 2026-27.
A capex of US$ 1.9 billion is envisaged for these efforts in
the upcoming fiscal year, which will position Vedanta for a
successful future.
Vedanta has consistently demonstrated its ability
to create value for all stakeholders. Through our
ongoing efforts to foster strong relationships across the
ecosystem, we ensure operational stability and resilience.
This strengthens our financial position and drives long-term
sustainable growth.
Consistent with the commitment to declared attractive
returns to shareholders, Vedanta declared one of the highest
dividends at ` 29.5 per share in FY 2023-24, representing a
healthy 11% yield. Our 5-year average dividend yield stood at
~17%, ~10x that of NIFTY 50 companies.
We also take pride in creating value for all other stakeholders.
Our contribution of ~` 54,402 crore to the national exchequer,
was instrumental in supporting vital government projects
and thus national development. In our community-building
effort, we invested over ` 438 crore in various educational,
healthcare and infrastructure development projects.
Supplier and buyer partners were supported by ensuring
ethical business practices, timely payments and fair pricing,
ultimately benefiting our entire supply chain.
The Board approved the demerger of Vedanta Limited.
into six independent pure-play companies. How does
this strategic move align with the Company’s broader strategy
and what is the anticipated completion timeline?
Aluminium business is the cornerstone of
our growth story, and as we advance through
FY 2024‑25, Vedanta Aluminium is on a transformative
trajectory with the completion of key growth projects aimed
at driving all-round performance.
These include the ongoing 1 MTPA expansion at BALCO that
will expand total smelting capacity to 3 MTPA, positioning us
among the top 3 producers globally ex-China. We expect its
commissioning in H2 FY 2024-25.
At Lanjigarh, the commissioning of 1.5 MTPA Train-I has
increased refining capacity to 3.5 MTPA, with Train-II of
another 1.5 MTPA capacity scheduled for Q2 FY 2024-25.
A debottlenecking exercise is underway to achieve 6 MTPA
alumina refinery capacity by FY 2025-26.
Mining operations are being reinforced to secure low‑cost
raw materials. The development of the 9 MTPA Sijimali
bauxite mine is progressing well, with the initial production
expected in Q3 FY 2024-25. For coal, Jamkhani mine
is producing at 100% of weighted capacity, and Kurloi,
Ghogharpalli and Radhikapur mines are poised for
commissioning within the next 9 -12 months.
Downstream, we are scaling up value-added products
(VAP) capacity at Jharsuguda and BALCO from 1.4 MTPA
to 2.6 MTPA, increasing its share from 60% to 90%. Rolled
product capacity is also being increased from 44,000 TPA
to 1,00,000 TPA.
These strategic initiatives in volume growth, backward
integration and value addition are poised to revolutionise
our cost structure. We anticipate an multi-fold increase
in our EBITDA margin and at 3 MTPA capacity, the
Aluminium business would alone generate more than
US$ 4 billion EBITDA.
As a growth-focussed organisation, Vedanta
remains committed to disciplined capital allocation
to achieve sustainable growth and value creation for
all stakeholders.
In addition to capex programmes in the aluminium business,
we are undertaking various other volume expansion and
vertical integration projects. Together, ` 12,267 crore
(US$ 1.4 billion) was invested in these efforts, supplementing
the ` 10,271 crore (US$ 1.2 billion) spent in the previous year.
All ongoing projects are progressing as per schedule. Zinc
India, following the successful commissioning of the Fumer
plant and the mill revamping, is progressing on track with
the 160 KTPA Roaster Plant and 510 KTPA fertiliser plant.
Gamsberg Phase 2 project, aimed to expand the MIC capacity
to 500 KTPA, has achieved nearly 60% completion.
The Oil & Gas business aims to halt and reverse production
decline through new recovery technologies, drilling additional
infill wells, extending polymer-flood EOR schemes and
Can you provide details on the Company’s capital
expenditure for FY 2023-24, including the progress
of expansion and debottlenecking programmes? How much
is the projected capital expenditure for the next fiscal?
Vedanta’s strategic demerger plan is set to
be a transformative step, designed to achieve
multiple objectives. One, it will create six distinct world-
class companies, each with leading cost positions in their
respective sectors and markets. Each of these would be
poised to capitalise on its unique strengths and market
position through focussed strategies and capital allocations.
Two, it will improve liquidity and capital growth, as
independent capital structures will facilitate attracting direct
investments. Three, it will give global and Indian investors
the potential to invest in their preferred vertical, thereby
attracting significant investments into the expansion and
growth of each of the businesses. Four, it will enable greater
management autonomy as the businesses transition from
centralised to independent management. Together, these
initiatives set the stage for sustainable growth and long-term
stakeholder value.
As of 31 March 2024, we have obtained a No-Objection
Certificate (NOC) from the stock exchange and are awaiting
SEBI’s NOC. Discussions with creditors for debt allocations
are ongoing. Following these, the scheme will be submitted to
NCLT for further processing.
Vedanta demerger: Creation of six
streamlined pure-play entities with an
‘asset owner’ driven model
Vedanta Limited: Retaining a 65% stake in
Hindustan Zinc and nurturing/incubating businesses
like FACOR, Nicomet, display and semiconductors to
focus on emerging opportunities and value creation.
Vedanta Aluminium: This entity will retain the
Lanjigarh refinery, Jharsuguda smelter, BALCO
(51% stake) and all associated captive power plants,
ensuring robust energy security and operational
efficiency.
Vedanta Oil and Gas: Leveraging Cairn’s established
expertise, this business will continue to be a
cornerstone of our resource portfolio.
Vedanta Base Metals: This will encompass Zinc
International, downstream copper business, and
our recent expansions in Saudi Arabia and Fujairah,
reflecting our commitment to global growth and
diversification.
Vedanta Steel and Ferrous Metals: This entity,
comprising assets in Karnataka, Goa, Electrosteel
and Liberia, will drive innovation and efficiency in the
ferrous metals space.
Vedanta Power: This entity will house our
substantial 5 GW commercial power capacity, laying
the foundation for a resilient and scalable energy
portfolio.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Management Speak
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These efforts are paying off with global
recognitions. Vedanta was ranked 3rd in
the S&P Global Corporate Sustainability
Assessment 2023, surpassing
previous benchmarks. Our subsidiary
HZL was ranked 1st in the metals
and mining peer group and Vedanta
Aluminium was ranked 1st among global
aluminium peers.
During the year, Vedanta Resources the parent
company of Vedanta Limited, completed its
liability management exercise. How did this impact the
Company’s ability to handle existing debt obligations and
strengthen its long-term resilience?
How do you perceive the industry scenario in
the near term? How is Vedanta future-ready in
response to these dynamics?
The liability management exercise conducted by
Vedanta Resources aimed at optimising the overall
debt structure. This involved extending the maturities of
three bonds due in January 2024, August 2024, and March
2025 to beyond 2027. An overwhelming 97% of bondholders
consented to this move, reflecting our strong financial
position and the trust of our stakeholders.
This strategic move not only enhances the current bond
structure of Vedanta Resources but also offers attractive
terms for our bondholders. The initiative comes in addition to
the balance sheet deleveraging by over ~US$ 3.7 billion in the
last two years which brought down debt to US$ 6 billion as of
31 March 2024. Together, these substantially strengthens our
liquidity position and long-term resilience, providing us with
greater headroom for managing existing debt and creating a
more sustainable capital structure for future growth.
What milestones has Vedanta achieved in its
sustainability journey, and what are the upcoming
initiatives in this area?
Vedanta is committed to ‘doing business with
purpose’, aligning our goals with India’s needs
and emphasising environmental and social responsibility.
Our sustainability framework focusses on three key areas:
Transforming Communities, Transforming the Planet and
Transforming the Workplace. FY 2023-24 was yet another
milestone year in this journey, as we embarked on over
650 high-impact ESG initiatives.
These efforts are paying off with global recognitions. Vedanta
was ranked 3rd in the S&P Global Corporate Sustainability
Assessment 2023, surpassing previous benchmarks. Our
subsidiary HZL was ranked 1st in the metals and mining peer
group and Vedanta Aluminium was ranked 1st among global
aluminium peers.
Transforming the planet: Decarbonisation is a top priority for
us. We have envisaged investing US$ 5 billion over the next
decade for decarbonisation activity. We aim to deploy 2.5 GW
of round the clock renewable energy (RE) by 2030. As of
FY 2023-24, we stand at 838 MW of RE round-the-clock
projects under construction against RE power delivery
agreements (PDAs) of 1,826 MW.
The Indian economy is poised for rapid decadal
growth, and commodities being a critical part of
the industries’ value chain will witness sustained demand.
Various positive indicators also hint at a potential rebound
in the prices of commodities, including declining surplus,
improved demand in China and restocking efforts.
Sustainability and the related potential transition risks
though remain an important look-out factor. Europe’s
recent introduction of the Carbon Border Adjusted
Mechanism (CBAM) underscores the importance of
reducing carbon emissions from imported goods. While
our exposure to this market is minimal, this development
sets a precedent for what the future holds.
Vedanta adopts a stance of cautious optimism,
emphasising sustainability and growth to navigate
evolving market dynamics. Our growth plans entail
capacity expansion across businesses alongside the
long-term objectives of vertical integration, operational
excellence and deleveraging. These are poised to enhance
our resilience and future readiness. At the same time,
we remain focussed on making scalable efforts towards
achieving ambitious ESG targets. We are innovating for a
greener business model, targeting net water positivity by
2030 and net carbon neutrality by 2050 or sooner through
investments in RE and energy transition projects.
With a low cost and world-class assets across businesses,
coupled with a strong financial position, commitment
to ESG and expansion plans, we are well-positioned to
capitalise from the strong demand trend and the ongoing
upward trajectory of the pricing cycle. This aggressive
growth strategy will help unlock our potential, significantly
enhancing production capacity, and elevating overall
performance, ultimately unlocking exceptional value for all
of our stakeholders.
Various water recycling and consumption optimisation
efforts helped cumulatively saved 4.5 million m3 of
freshwater since FY 2020-21. Five of our businesses are
already water‑positive. Pledging to plant 7 million trees
under the World Economic Forum’s movement, we have
already reached 2 million by the end of FY 2023-24. We are
pioneering sustainable logistics, exemplified by deploying
several battery-operated electric vehicles in underground
mining and HZL planning to induct 180 LNG vehicles.
Transforming the workplace: Vedanta remains at
the forefront of redefining mining operations through
technological advancements and automation. These have
contributed to safer and more efficient operations. Our
workforce can now safely operate machinery remotely,
kilometres under the ground. We are also redefining
inclusivity with progressive practices. More than 20% of
our workforce is women and we have achieved this, six
years before the target year of 2030. Furthermore, we
have inclusion policies for the LGBTQIA+ community and
advanced parental leave policies.
Transforming Communities: Vedanta’s philanthropic
initiatives positively impacted over 50 million lives in
FY 2023-24, focussing on childcare, nutrition, women’s
empowerment, healthcare, skilling, sports and animal
welfare. Our flagship project, Nand Ghar, is actively
addressing issues of child malnutrition, education and
healthcare and women empowerment through skill
development in rural India. We have transformed more
than 6,000 Anganwadis (or government-run child-day-care
centres) in India, but our ambition is to transform all 1.4
million such centres across the country.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Management Speak
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Problem Statement
Boasting a massive resource base of Gamsberg mine, Ghamsberg
Phase 2 presents a significant expansion opportunity. However,
its ambitious scope necessitates careful coordination of
various activities, including the expansion of mining operations,
construction of a new concentrator plant, and the establishment
of critical infrastructure like a new tailings dam, power
transmission lines, and water reservoirs. Successfully navigating
these complex logistical challenges will be crucial to unlocking
the full potential of this large-scale mining project.
Spearheading the
transformative Gamsberg
Phase 2 project, reflecting
Vedanta’s commitment to
sustainable mining and
operational excellence. This
initiative entails the expansion
of Gamsberg’s mining capacity
to double and the construction
of a new Concentrator plant,
reinforcing the Company’s
dedication to advancing
mineral processing capabilities
while fostering economic
growth and job creation.
Enhancing Capacity
and Economic Impact -
Gamsberg Concentrator
Phase 2
Business Growth
Our Solution
Conceptualised an EPC
(Engineering, Procurement, and
Construction) approach for the
Phase 2 concentrator
Initiated major long lead item
orders, to be freely issued to the
EPC Business Partner for erection
and commissioning
Undertaken construction of a
new tailings dam, additional
power infrastructure, and
a water reservoir to meet
increased demands
Ensured completion of civil works
in key process areas, facilitating
the installation of equipment
and structures
Way Forward
Continue equipment
deliveries, targeting
completion by first quarter of
FY 2024-25
Advance construction
progress with a specific
focus on completing the wet
TSF (Tailing Storage Facility)
components
Execute remaining
construction phases,
addressing the external water
and power needs
Monitor and address any
unforeseen challenges in
construction progress
Progress
Overall project completion
53%
Engineering work completed
100%
CAPEX incurred for
the project
US$ 466 million
Procurement work has
been done
96%
Double the annual ore
capacity of Gamsberg, from
4 MTPA to 8 MTPA
Is set to achieve from this project
2,000-2,500 jobs
Expected job creation during
the construction
1,800
People employed including
inhouse and business partners
200 kt of MiC
(Mineral in Concentrate)
Anticipated future annual production
Project Impact
34
35
FINANCIAL STATEMENT
STATUTORY REPORTS
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
Case Studies
Problem Statement
Primary Aluminium production is energy-intensive, necessitating
a focus on reducing power consumption for sustainable practices.
The Company faced the challenge of optimising energy efficiency
in the smelting process to meet ESG commitments and enhance
overall operational sustainability.
Our Solution
Conducted a detailed model of existing pots and busbar networks
to identify potential opportunities for improvement
Implemented copper inserts to diminish electrical resistivity and
horizontal current components, enhancing overall conductivity
Utilised existing assets with added insulation to maintain superior
thermal balance and prevent electrolytic bath material infiltration
Employed a unique cold sealant, distinguishing the lining design
from other solutions in the market
Way Forward
Installed 150 pots with the lining design
Commenced a comprehensive scale-up process, aiming to achieve
full production capacity
Vedanta Aluminium
has achieved a
groundbreaking
advancement in the
design of reduction cells
(pots) at its Jharsuguda
smelter. The patented
“Vedanta lining design”
significantly improves
energy efficiency and
extends the lifespan of
smelting pots, aligning
with the Company’s
commitment to
self‑reliant sustainable
production and
environmental, social, and
governance (ESG) goals.
Breakthrough in
Reduction Cell
Lining Design
Business Growth
Estimated power
reduction target
Annual GHG emission reduction target
on full‑scale implement
250 kWh/t
0.432 million tCO2e
Volume increment target on
full-scale implementation
Estimated cost savings target on
full‑scale implement
16 kt
US$ 19.9 million
Targets
36
37
Case Studies
FINANCIAL STATEMENT
STATUTORY REPORTS
CORPORATE OVERVIEW
Integrated Report and Annual Accounts 2023-24
VEDANTA LIMITED
Problem Statement
Monetising the Jaya field faced challenges such as regulatory
compliance, market volatility, and the need for technological
adaptations. Efficiently navigating these hurdles was crucial
for the Company to ensure timely and profitable returns on
investment.
Our Solution
Commissioned a modular facility within 11 months, setting a global
benchmark for drilling-to-production turnaround time
Onboarded a rental facility contractor and gas buyer in December 2020
and January 2021 respectively
Addressed delayed pipeline connectivity by commissioning a CNG
facility at the Jaya site, allowing for innovative and immediate gas
testing through truck-mounted CNG kits
Initiated long-term testing by December 2022, utilising a first‑of‑its‑kind
CNG cascade system for sales to nearby gas stations, minimising gas
flaring and enabling simultaneous appraisal and monetisation
Commenced sales via gas pipeline on 10 August 2023, enhancing
production from the Jaya field
Way Forward
Continue enhancing production from the Jaya field, with sales through
gas pipelines facilitating increased testing production
Address ongoing challenges related to remote site access, regulatory
compliance (DGH, MoPnG, PESO, CTO, PNGRB), and ensure seamless
execution
Cairn, a prominent
player in the Oil and Gas
industry, has set course
to monetise Jaya field
(OALP CB/ONHP/2017/2
block) to cater the
nation’s energy demand.
Overcoming regulatory,
market, and technological
challenges, Cairn aimed to
transform the Jaya field’s
potential into a lucrative
revenue stream.
Monetising
the Jaya Field
Business Growth
January 2023
Production
~350 boe
Sales through
cascades
August 2023
Production
~1,500 boe
Sales through gas
pipeline
December 2023
Production
2,300 boe
YME-01 well line up
Progress
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
Case Studies
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FINANCIAL STATEMENT
STATUTORY REPORTS
In adherence to its
core safety philosophy
“Safety First”, Hindustan
Zinc has successfully
trained India’s inaugural
all-women mining
rescue team. This
groundbreaking initiative,
a testament to the
company’s commitment
to Safety Development
Goals, aims to achieve
Zero Harm in mining
operations. The seven-
member rescue team
underwent comprehensive
training, including first
aid, firefighting, and
emergency response,
aligning with the
company’s focus on
safety and sustainability.
Impact Statement
The creation of India’s first all-women mining rescue team
addresses a crucial need for gender-inclusive safety measures
in mining operations. This initiative pioneers diversity and
contributes significantly to Hindustan Zinc’s overarching goal
of achieving Zero Harm in its operational practices.
Our Approach
Established India’s first-ever all-women mining rescue team
to bolster safety measures in mining operations
Aligned the initiative with the Company’s Sustainability
Development Goals, emphasising the commitment to Zero
Harm
Conducted base training at the RRRT centre at Rajpura Dariba
Complex, followed by rigorous training at the Mine Rescue
Station, Nagpur
Covered key areas such as first aid, firefighting, mine
emergency scenarios, self-rescue techniques, and emergency
response in the training curriculum
Way Forward
Continue to strengthen the capabilities of the all-women
mining rescue team through ongoing training and skill
development
Explore opportunities to replicate this pioneering initiative
across other mining sites, fostering inclusivity and diversity in
the mining sector
Evaluate the effectiveness of the training programme through
regular assessments and feedback sessions
Actively promote the achievements of the all-women mining
rescue team to inspire more women to join the mining
industry
People
India’s First
All-Women Mining
Rescue Team: Pioneering
Safety Initiatives
FINANCIAL STATEMENT
STATUTORY REPORTS
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
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Case Studies
Vedanta is steadfast in its
commitment to a cleaner,
sustainable future. This
commitment is clearly
demonstrated through
our proactive execution of
renewable energy projects
across the Group. We
have entered into power
delivery agreements for
approximately 1,826 MW
of Renewable Energy with
Serentica Renewables.
As we prepare for the
commissioning of the
inaugural phase in the first
quarter of FY 2024-25,
this initiative underscores
our concerted efforts to
increase the renewable
energy mix, achieve our
sustainability goals, and
direct investments towards
strategic priorities.
Impact Statement
This initiative is aimed at significantly increasing the company’s
share of renewable energy and reducing carbon emissions. For
Hindustan Zinc, this move is pivotal in achieving the company’s
Science-Based Targets Initiative (SBTi) targets, thereby contributing
to a sustainable and environmentally friendly operational model.
Our Approach
Accelerated the project timeline for using 1,826 MW of renewable
energy
Actively progressing with land acquisition and obtaining necessary
statutory approvals
Secured transmission connectivity to ensure seamless energy
distribution
Established partnerships with OEM, EPC, and vendor partners to
ensure construction progress at the site
We have planned for phased completion, starting from 1Q FY 2024-25
Way Forward
We will continue the phased completion, ensuring that milestones are
met for each stage of the project
We plan to sign more Power Delivery Agreements under our
commitment to using 2.5 GW of Round-The-Clock (RTC) renewable
energy power
We aim to achieve net-zero emissions by 2050, with the Board
approving long-term captive renewable energy power delivery plans
Environment
Vedanta’s
Commitment to a
Sustainable Future
Renewable power share
increment target
20-25%
GHG emission reduction target
~15-20 million tCO2e
Targets
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
Case Studies
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FINANCIAL STATEMENT
STATUTORY REPORTS
KEY PERFORMANCE INDICATORS
SUSTAINING GROWTH AND VALUE
CREATION WITH RESILIENCE
GROWTH
Revenue (` crore)
FY 2022
FY 2023
FY 2024
1,31,192
1,45,404
1,41,793
FY 2022
FY 2023
FY 2024
45,319
35,241
36,455
FY 2022
FY 2023
FY 2024
21,715
18,077
11,427
FY 2022
FY 2023
FY 2024
30
21
23
FY 2022
FY 2023
FY 2024
39
28
30
FY 2022
FY 2023
FY 2024
0.5
1.3
1.5
FY 2022
FY 2023
FY 2024
15.0
8.2
4.8
Description: Revenue represents
the value of goods sold and services
provided to third parties during the year
Commentary: In FY 2023-24, consolidated revenue
was at C 1,41,793 crore compared with C 1,45,404
crore in FY 2022-23. This was primarily driven by
lower output commodity prices primarily of zinc,
aluminium and brent, partially offset by higher
volume at Aluminium, Copper and Iron Ore business
and rupee depreciation
OTHER KEY FINANCIAL RATIOS
Debtors turnover ratio*
FY 2022
FY 2023
FY 2024
32.5
31.8
34.9
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
Commentary: The debtors turnover ratio was at
34.93 times
EBITDA (` crore)
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 2023-24 was at
C 36,455 crore, 3% higher Y-O-Y. This was mainly
due to softening of input commodity prices coupled
with strategic cost savings, one time arbitration
award in Oil & Gas business and rupee depreciation
which is partially offset by slip in commodity prices
primarily of aluminium, zinc and brent and strategic
hedging gain recognised in previous year
FY 2022
FY 2023
FY 2024
7.1
7.5
7.5
Inventory turnover ratio
Description: The inventory turnover ratio
is an efficiency ratio that shows how
effectively inventory is managed. This is
calculated as a ratio of cost of goods sold
to average inventory
Commentary: The inventory turnover ratio for the
Company was at 7.52 times in FY 2023-24 as
compared to 7.51 times in FY 2022-23
FCF post-capex (` crore)
Description: This represents net cash flow
from operations after investing in growth
projects. This measure ensures that profit
generated by our assets is reflected by cash
flow, in order to de-lever or maintain future
growth or shareholder returns
Commentary: We generated FCF of C 11,427 crore
in FY 2023-24, driven by strong cash flow from
operations and working capital release, partly offset
by higher capex
FY 2022
FY 2023
FY 2024
1.0
0.7
0.7
Current ratio
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
Commentary: The current ratio of the Company
remained at 0.68 times
Return on capital employed (ROCE) (%)
Description: This is calculated on the basis
of operating profit, before special items
and net of tax outflow, as a ratio of average
capital employed. The objective is to earn
a post-tax return consistently above the
weighted average cost of capital
Commentary: Strong ROCE of c.23% in
FY 2023-24 (FY 2022-23: 21%), primarily due
to increase in EBIT
FY 2022
FY 2023
FY 2024
0.6
1.3
1.7
Debt equity ratio
Description: It is a financial ratio indicating
the relative proportion of shareholders’
equity and debt used to finance a
Company’s assets. This is calculated as
a ratio of total external borrowing to total
equity (share capital + reserves + minority)
Commentary: The ratio has increased to
1.71 times in FY 2023-24 primarily due to an
increase in gross debt from the increase in
borrowings at THL Zinc Ventures and BALCO.
Adjusted EBITDA margin (%)
Description: Calculated as EBITDA margin
excluding EBITDA and turnover from custom
smelting of Copper business
Commentary: Adjusted EBITDA margin for
FY 2023-24 was 30% (FY 2022-23: 28%)
FY 2022
FY 2023
FY 2024
28
17
18
Operating profit margin (%)
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
was higher in FY 2023-24 as compared to
FY 2022-23, primarily due to higher EBITDA in
the current year
Net debt/EBITDA (consolidated)
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 of the consolidated
financial statements
Commentary: Net debt/EBITDA ratio as of
31 March 2024 was at 1.5x, compared with 1.3x
as on 31 March 2023
FY 2022
FY 2023
FY 2024
19
10
8
Net profit margin (%)
Description: It is a measure of the profitability
of the Company. This is calculated as a ratio
of net profit (before exceptional items) to
revenue from operations
Commentary: The net profit margin was at 8% in
FY 2023-24 as compared to 10% in FY 2022-23
Interest Cover
Description: The ratio is a representation of
the ability of the Company to service its debt.
It is computed as a ratio of EBITDA divided
by gross finance costs (including capitalised
interest) less investment revenue
Commentary: The interest cover for the
Company was at c. 4.79 times, lower Y-O-Y on
account of higher interest
FY 2022
FY 2023
FY 2024
30
22
25
Return on Net Worth (%)
Description: It is a measure of the profitability
of the Company. This is calculated as a ratio
of net profit (before exceptional items) to
average net worth (share capital + reserves
+ minority)
Commentary: The return on net worth was
at 25% in FY 2023-24 as compared to 22% in
FY 2022-23
*Excluding power business
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Key Performance Indicators
44
45
FY 2022
FY 2023
FY 2024
1.4
1.2
1.3
TRIFR
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
Commentary: This year, the TRIFR was 1.3.
Safety remains the key focus across
businesses
FY 2022
FY 2023
FY 2024
11.5
14.2
20.0
Gender diversity (%)
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 20% of the total
workforce achieving our target six years ahead
of schedule
FY 2022
FY 2023
FY 2024
42.0
44.0
17.4
CSR footprint (million beneficiaries)
Description: The total number of beneficiaries
through our community development
programmes across all our operations
Commentary: We benefited 17.4 million people
this year through our community development
projects comprising community health,
nutrition, education, water and sanitation,
sustainable livelihood, women empowerment
and bio-investment
LONG-TERM VALUE
Growth capex (` crore)
FY 2022
FY 2023
FY 2024
5,659
10,271
12,267
Description: This represents the
amount invested in our organic growth
programme during the year
Commentary: Our stated strategy is of
disciplined capital allocation on high-return,
low-risk projects. Capital expenditure
on expansion during the year stood at
C 12,267 crore
FY 2022
FY 2023
FY 2024
52.0
28.4
21.4
EPS (before exceptional items) (`)
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 2023-24, EPS before
exceptional items was at C 21.40 per share
FY 2022
FY 2023
FY 2024
45.0
101.5
29.5
Dividend (` per share)
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 C 29.50 per share this
year compared with C 101.50 per share in the
previous year
FY 2022
FY 2023
FY 2024
448
460
456
FY 2022
FY 2023
FY 2024
671
659
662
FY 2022
FY 2023
FY 2024
1,151
1,156
1,376
Zinc India (million tonnes)
Zinc International (million tonnes)
Oil & Gas (Mmboe)
Description: During the year, combined R&R
were estimated to be 456 million tonnes,
containing 30.8 million tonnes of zinc-lead
metal and 854.3 million ounces of silver.
Overall mine life continues to be more than
25 years
Description: During the year, combined
mineral resources and ore reserves estimated
at 662 million tonnes, containing 34.8 million
tonnes of metal
Description: During FY 2023-24, the gross
proved, and probable reserves and resources
stood at 1,376 Mmboe
Reserves and resources (R&R)
Description: Reserves and resources are based on specified
guidelines for each commodity and region.
SUSTAINABILITY KPIs
GHG Emissions (in tonnes of CO2)
FY 2022
3.3
59.5
FY 2023
8.2
57.2
FY 2024
4.6
61.3
Description: Vedanta used Scope 1 and Scope
2 GHG emissions, measured in tonnes of CO2e
to track its carbon footprint.
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
Commentary: Our overall GHG emissions
have increased marginally by 0.8% Y-O-Y
Scope 2
HVLT (High Volume Low Toxicity) (million tonnes)
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 2023-24, we have achieved
92% recycling of our HVLT waste
FY 2022
19.1
18.6
FY 2023
18.2
17.3
FY 2024
20.2
18.5
Generated
Recycled
Water consumed and recycled (million m3)
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 2023-24, we recycled
84 million m3 of water, equivalent to around
30% of consumed water
FY 2022
280
86
FY 2023
266
78
FY 2024
280
85
Consumed
Recycled
Scope 1
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Key Performance Indicators
46
47
A RESILIENT MODEL
FOR LONG-TERM VALUE CREATION
VALUE CREATION MODEL
Financial
Capital
Manufactured
Capital
Intellectual
Capital
Human
Capital
Social And
Relationship Capital
Natural
Capital
Inputs
Resources and
relationships
deployed
Availability,
affordability
and
accessibility
of capital
and trade-
offs faced
• Equity: ` 372 crore
• Gross debt: ` 71,759 crore
• Net worth: ` 42,069 crore
• Cash and cash equivalent:
` 15,421 crore
• Growth capex: ` 12,267 crore
• Operating in a fast-growing
economy where the focus is on
infrastructure development and
sustainability, Vedanta has adequate
access to capital
• The increase in market rates has
increased interest costs
• Ensuring continued access to
manufactured assets through
targeted investments in maintenance
and necessary replacement
• Robust R&R base ensures steady
raw material availability
• All capex projects are progressing
well for scheduled completion
• Well-maintained and functional plant
and equipment: ` 1,21,852 crore
• Capital work-in-progress:
` 20,331 crore
• Reliable availability of services from
services providers and contractors
• Purpose and long-term
goals‑driven culture with
continued investments to
align strategy
• Leadership and
management training
• Ongoing investments in
digitalisation, innovation and
process automation
• Focussed approach and
programmes for R&D, skill
development and attracting
and retaining top talent
• Modernised processes
and high-end technology
ensure alignment with
the evolving world
• Total workforce: 97,015
• HSE workforce (incl.
contractor): 1,160
• No. of geologists*: 206
• Training: 29,73,887 hours
• Safety training: 23,58,662 hours
• Employees covered under
mentoring and support
programmes: 2,900
• Ready availability of skilled
and semi-skilled people across
global operations
• Continued investments
in skilling and well-being
initiatives for people
ensuring high retention
• Increased stakeholders’ expectations for
enhanced ESG performance
• Negative sentiments towards
companies in the metal
and mining sector
• Community investment: ` 438 crore
• Strong global and domestic banking
relationship: 30+
• Independent Directors: 4
• Constructive dialogues with unionised
and non-unionised workforce
• Established credibility with local
communities, civil society organisations,
NGOs and the media
• Resources consumed (in million):
• Energy: 648.72 million GJ
• Water: 280.21 million m3
• Coal: 38.6 million tonnes
• HVLT waste generated: 20.15 million tonnes
• Fly ash generated: 15.62 million tonnes
• R&R Zinc India: 456.3 million tonnes, containing
30.82 million tonnes of zinc-lead metal and
854.3 million ounces of silver
• R&R Zinc International: 662 million tonnes,
containing 34.8 million tonnes of metal
• R&R Oil & Gas: 1,376 Mmboe gross proved, and
probable reserves and resources
• Healthy and long-life asset with an
adequate R&R base
• Natural and mineral resources being
finite, we maintain a strong focus on
managing them carefully
Business segments
Oil and Gas
Iron Ore
Steel
Ferro Alloys
Aluminium
Zinc
Copper
Our core values
Integrity
Respect
Care
Trust
Excellence
Innovation
Entrepreneurship
Our value chain activities
Exploration
Asset development
Extraction
Processing
Value addition and marketing
Infrastructure
Building and
Construction
Power
Automotive
Aerospace
Packaging
Hydrocarbon
refineries
Fertiliser
Steel
Transport
Appliances
Wires and Cables
Chemicals
Industries serviced
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Value Creation Model
48
49
USING OUR SIX CAPITALS
TO CREATE VALUE
Outcomes
Actions to
enhance
outcomes
Stakeholder
affected
SDGs
positively
impacted
Shareholders
Investors
Customers
Employees
Government
Lenders
Suppliers
Local community
NGOs
Environment
Civil Society Groups
Business
segments
and Outputs
OIL & GAS
ZINC INDIA
POWER
ALUMINIUM
ZINC INTERNATIONAL
STEEL
COPPER
PIG IRON
• Mined Metal –
1,079 kt
• Integrated Metal –
1,033 kt
• 128 Kboepd
• 13.4 bn kWh
• Alumina – 1.8 million tonnes
• Aluminium – 2.4 million tonnes
• 208 kt
• 1,386 kt
• 141 kt
• 831 kt
FINANCIAL
CAPITAL
MANUFACTURED
CAPITAL
INTELLECTUAL
CAPITAL
HUMAN
CAPITAL
SOCIAL AND
RELATIONSHIP CAPITAL
NATURAL
CAPITAL
• Turnover: ` 1,41,793 crore
• EBIDTA: `36,455 crore
• Attributable PAT (before exceptional
items): ` 7,956 crore
• Earnings per share (before exceptional
Items): ` 21.40 per share
• Dividends paid: ` 18,572 crore
• FCF post-capex: ` 11,427 crore
• RoCE: 23%
• Net Debt to EBITDA: 1.5x
• Total exchequer contribution:
` 54,402 crore
• Focus on value-added products with
better margins
• Prudent capital allocation for
capacity expansion
• Demerger approved by the
Board to unlock the potential of
respective businesses
• Focus on deleveraging balance sheet
• Continued efforts to reduce costs
and enhance productivity
• Significant investments committed
towards capex projects
• Sustained investments
in innovation and
phase 2 implementation
of organisation-wide
digital transformation
project to maintain the
competitive edge
• Rolling out critical risk management
to cover major risk areas
• Strive for zero harm and zero
discrimination workplace
• Invest in employee skilling, health &
safety and well-being
• Seek newer ways to engage
and build healthy relationships
with stakeholders
• Maintain a robust ESG framework
• R&D to convert operational
by‑products into raw materials for
application in other industries and
internal consumption
• Partnerships for circular
economy solutions
• Implementation of capex
projects on schedule
• Ensuring optimal
performance of assets
• R&D Spend: ` 13 crore
• Patents received in
FY 2023-24: 2
• Patents under active
application: 11
• Investment in
digitalisation: ` 160 crore
• Attrition rate: 10.8%
• Diversity ratio: 20%
• Total recordable injury frequency
rate (TRIFR): 1.3
• Fatalities: 3
• Successful inclusion of LGBTQ+
colleagues with supportive policies
• CSR beneficiaries: 17.4 million
• Nand Ghars built till FY 2023: 6,000
• Dividend declared: ` 29.5 per share
• Contribution to the exchequer:
` 54,402 crore
• Youth benefited from employment-based
skills training: 4,076
• GHG Emissions:
• Scope 1 – 61.28 million tCO2e
• Scope 2 – 4.56 million tCO2e
• Water recycled: 84.7 million m3
• HVLT utilised/utilisation:
18.5 million tonnes/92%
• Fly ash utilised/utilisation rate:
16.5 million tonnes/107%
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Value Creation Model
50
51
OPPORTUNITIES
SETTING THE
STANDARDS FOR
INDUSTRY ADVANCEMENT
We are operating in a dynamic industry landscape, marked
by continual evolution and emerging trends that present new
opportunities for growth and innovation. Vedanta stands out with
its agility and a robust, yet flexible business model, that enables
implementing industry-defining practices to stay ahead of the
competition. This proactive approach ensures our relevance,
positioning us for future success and creating sustainable value
for all stakeholders.
Grassroots Exploration
A thinning pipeline of mining assets and the escalating
challenge of finding deposits pose risks to meet growing
metals demand and fill reserves for the future. It is therefore
critical for miners to shift focus from acquisitions, and
instead increase spending on grassroots exploration to
Vedanta recognises the critical role of grassroots
exploration in securing a sustainable future for the
mining sector. Our mines are rich with reserves that
promise productivity for over two decades, yet we
persist in exploration to safeguard our long-term
prospects. Our commitment is evident in our proactive
search for new resources, which has notably enhanced
our mines’ Reserves & Resources (R&R). This is
exemplified by the impressive expansion of our oil
and gas 2P reserves and 2C resources, now totalling
1.4 billion barrels of oil equivalent. Through a focus
on grassroots exploration, Vedanta is dedicated to
achieving organic growth and reducing our dependence
on acquisitions, aligning with our strategic objectives
for enduring success.
Vedanta response
Net-Zero Commitment
Mining companies are positioned to lead in sustainability
by swiftly implementing comprehensive ESG strategies.
Adopting pioneering sustainability practices and undertaking
collaborative efforts across the value chain can significantly
contribute to climate change mitigation and create a
credible transition.
Vedanta is committed to achieving net zero carbon
by 2050, with a planned US$ 5 billion investment
over the next decade. Leading in energy efficiency,
we have signed power delivery agreement of 1,826
MW of Renewable Energy (RE) and we aim to deploy
2.5 GW of RE RTC in our operations by 2030. We are
pioneering sustainable logistics within the mining
sector, having introduced battery-operated EVs in
underground mining to reduce emissions.
Five of our businesses have achieved water positivity,
reflecting our dedication to preserving vital resources.
To play an active role in biodiversity conservation, we
have planted 2 million trees across India towards our
pledge of 7 million trees under the World Economic
Forum’s initiative.
Our efforts have been recognised. Vedanta was ranked
3rd out of 238 global companies in the S&P Global
Corporate Sustainability Assessment, Hindustan
Zinc has been recognised as a global leader in
sustainability and Vedanta Aluminium as the most
sustainable aluminium producer.
Vedanta response
Purpose-Driven Mining
The mining industry is shifting towards purpose-driven
operations, focussing on ethical and sustainable practices
to create value for stakeholders and gain their trust. This
approach requires a leadership commitment and presents
mining companies with an opportunity to play a pivotal role in
driving economic development and advancing social progress.
Vedanta believes in mining with a mission and is at the
forefront of the industry’s transition towards a purpose-
driven future. Our operations go beyond extracting
resources, aiming to enrich lives and create a sustainable
legacy of positive change for future generations. Guided
by the philosophy of giving back, we positively impact
over 15 million lives annually through initiatives in
childcare, nutrition, women’s empowerment, healthcare
and education. Our flagship Nand Ghar project is
revolutionising early childhood development in rural
India, having transformed nearly 6,000 Anganwadis, and
aiming to reach all 14 lakhs nationwide.
As one of India’s leading social investors, we have
pledged an additional ` 5,000 crore over the next five
years aiming to empower 2.5 million families annually
with essential skills training and uplift over 100 million
women and children.
Vedanta response
discover new resources sustainably and reverse this trend.
They must also harness advanced technologies to expedite
the identification and evaluation of targets.
T1
T3
T2
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Opportunities
52
53
Unlocking new value in existing assets
Operational technologies and analytical tools are
revolutionising decision-making in the mining industry, driving
a paradigm change in functions like mine planning and
maintenance. These technologies enable digital replication
of assets, facilitating visualisation and strategic simulation,
optimising decisions on investments and processes. This
innovative approach, supported by accessible simulation
software, maximises value from existing assets.
Rethinking minerals and metals investments
In the pursuit of sustainable growth and quicker access
to essential minerals and metals, companies are
reevaluating their investment strategies. They are exploring
non‑traditional avenues like joint ventures (JVs) and strategic
alliances to secure resources vital for sustainability and
expedite the launch of new production capacities. They
must also adopt innovative thinking regarding investment
Vedanta is harnessing the power of digitalisation,
integrating advanced technologies to enhance the
value of existing assets and drive operational efficiency.
This includes Digital Twin which allows us to create a
virtual model of physical assets, facilitating simulation
and optimisation of operations before real-world
implementation. Additionally, we have implemented
Advanced Process Control (APC) which uses real-time
data and analytics to fine-tune production processes,
ensuring maximum efficiency and minimal waste.
We also actively collaborate with established
multinationals and vibrant Indian startups to source
cutting-edge digital solutions. This helps enhance our
operational processes and redefine possibilities.
Our commitment to digitalisation extends to remote
mining operations, to enhance the safety of our
workforce. By leveraging remote-controlled machinery
and operations, we minimise personnel exposure to
hazardous conditions, reducing the risk of accidents
and ensuring a safer working environment.
Vedanta response
Vedanta is at the forefront of sustainable development,
ensuring timely access to vital minerals and metals. We
are innovating our investment strategies, embracing
JVs and strategic alliances to secure resources
essential for a sustainable future. These partnerships
are key to fast-tracking new production capacities. We
are not confined to conventional investment methods;
our approach includes creative investment structures
and engaging diverse investors like governments
and OEMs. This broadens our resource base and
accelerates the integration of crucial supplies into the
market. Our dedication to sustainability is unwavering.
Vedanta’s investment strategies are designed
to support and drive industry-wide sustainable
practices, reflecting our commitment to global
environmental stewardship.
Vedanta response
structures and potential investors, including governments
and Original Equipment Manufacturers (OEMs), to facilitate
this process and integrate crucial metal supplies into the
market more rapidly.
Third-party delivery models (TPDM)
Mining and metals companies are strategically partnering
with global industry leaders to manage critical business
functions like tax compliance, AI-enabled data management,
ESG reporting, applications management, supply chain
oversight and cybersecurity. Amidst global risks and supply
Skills-based approach to solve workforce
challenges
Amidst skill shortages and ageing workforce, mining and
metals companies must adopt a skills-based approach,
focussing on worker capabilities rather than specific roles.
This strategy enhances agility and flexibility, enabling them
to tap into the workforce’s full potential and innovate new
Our commitment to integrating cutting-edge
technology and scaling our projects internationally
is reflected in our choice of partners. These partners
are not just industry frontrunners; they assume
complete end-to-end responsibility for the successful
delivery of our projects, ensuring excellence and
reliability. Vedanta collaborates with esteemed
partners such as Schlumberger, Halliburton, GE,
Siemens and Worley to meticulously execute projects
with end-to-end accountability. Additionally, for vital
support functions such as tax compliance and ESG
reporting, we engage with the renowned expertise
of the Big Four accounting firms. This strategic
alliance ensures that every aspect of our operations
is managed with precision and adheres to the highest
standards of excellence.
Vedanta response
Vedanta embraces a skills-based workforce approach,
focussing on capabilities to enhance flexibility and
potential. Through robust internal talent building
programmes and strategic educational partnerships,
we ensure a future- and industry-ready workforce,
bolstering operational resilience. A youthful workforce
with an average age of 33 years is ensured by
adopting a practice of inducting 1,500-2,000 freshers
annually from top universities. Our commitment to
talent-based recognition fosters a performance-driven
culture, while our structured talent management
programmes have helped develop a pipeline of
3,000 young and dynamic leaders. Diversity, equity
and inclusion are at the forefront of Vedanta’s hiring
philosophy supported by industry-leading policies
for women, parenthood and transgenders. Our
people practices have resulted in over 100 external
recognitions, including ‘Kincentric Best Employer, India
2023’ and ‘India’s Best Employers Among Nation-
Builders by Great Place to Work’.
Vedanta response
chain disruptions, TPDM enables companies to focus on core
operations and have the flexibility to scale activities rapidly.
work methods. Collaborations with universities to align
education with industry needs are also key.
T4
T6
T7
T5
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Opportunities
54
55
STRATEGIC PRIORITIES AND UPDATE
POSITIONING VEDANTA
FOR A SUSTAINABLE AND
SCALABLE GROWTH
Operating in a dynamic business environment, we must proactively manage risks and
material matters and stay ahead of trends and market cycles to seize opportunities.
To this end, we have devised robust and all-encompassing strategies that empower
us to leverage our strong foundation and align with our purpose. Through the effective
execution of these strategic priorities, we are charting a path to maximise outcomes for
our business and our stakeholders.
Strategic Priorities
Continued focus on world-class
ESG performance
01
Augment our Reserves &
Resources (R&R) base
02
Optimise capital allocation and
maintain a strong balance sheet
04
Operational excellence and
cost leadership
05
Delivering on growth opportunities
03
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Strategic Priorities and Update
56
57
Continued focus on world-class ESG performance
S1
Operating sustainably and responsibly is key to our success. Focussed on this, we ensure embedding ESG into all aspects of
business and have set vision of “Transforming for Good” which encompasses transforming communities, transforming the
planet, and transforming the workplace. Through pioneering efforts in these areas, we aim to positively impact stakeholders,
minimise environmental impact and progress towards zero harm, zero discharge and zero waste.
FY 2023-24 Update
Total Nand Ghars in
FY 2023‑24 – 6,000+
Skill-based training impacting
1.48 million families
GHG emissions increased by
0.8% Y-O-Y
Water positivity ratio 0.71
92% HVLT waste utilisation
3 Fatalities
LTIFR - 0.589
TRIFR - 1.3
Women employees - 20%
Women in leadership positions
- 29%
ESG rating improvement in
MSCI, DJSI, Sustainalytics and
CDP water
Vision
Objectives for FY 2024-25
Enhance skillsets of ~1,600
families
Positively impact ~13,000 women
and children through programmes
in education, healthcare, nutrition
20% reduction in metals and
mining intensity
500 MW RE RTC in operations
Investment in energy transition-
` 2,700 crore
Water positivity ratio - 0.7
Legacy waste - 29.6 million metric
tonnes
Habitat restoration - 2,300 hectares
Zero fatalities
LTIFR - 0.63
Zero governance issues
Augment our Reserves & Resources (R&R) base
S2
Expansion in R&R base, being key to our long-term growth ambitions, we continually engage in targeted and disciplined
exploration programmes. Through deploying best technologies, making sustained investments and ensuring dedicated efforts by
exploration teams to discover mineral and oil deposits safely and responsibly, we ensure the replenishment of our resources
FY 2023-24 Update
Zinc India
Improved total Ore Reserves to
175.1 million tonnes supported by
increased focus on resource-to-
reserve conversion
Combined R&R were estimated
to be 456.3 million tonnes,
containing 30.82 million tonnes of
zinc-lead metal and 854.3 million
ounces of silver
Overall mine life continues to be
more than 25 years
Oil & Gas
First Field Development Plan
(FDP) approved under OALP
regime for Jaya field. Production
commenced with initial plan to
deliver > 3 Kboepd
Infill wells drilled across PSC
blocks to mitigate natural decline
Drilling campaign underway in
North-East region to export the
prospects in the block
Gross proved and probable
reserves and resources stands
increased to 1,376 Mmboe
Zinc International
Combined mineral resources
and ore reserves estimated at
662 million tonnes, containing
34.8 million tonnes of metal
Objectives for FY 2029-30
~2.5 million families with enhanced
skillsets
Positively impact 10 million women
and children through programmes in
education, healthcare, nutrition
25% absolute reduction GHG
emissions vs FY 2020-21 baseline
2.5 GW RE RTC in operations
Water positivity ratio - 1.0
Legacy waste - 23 million metric
tonnes
Habitat restoration - ~2,500
hectares
Zero fatalities
LTIFR - 0.37
Total women employees - 20%
Women in leadership roles - 40%
Zero governance issues
KPIs
Risk
Total Number of Nand Ghars
Skillset imparted to families
Impact of CSR programmes in
education, healthcare, nutrition
Absolute GHG emissions
RE power in operations
Metals and Mining GHG intensity
Annual waste utilisation
Water positivity ratio
Habitat restoration
Fatalities
LTIFR
% of women employees
% of women in leadership roles
Zero governance-related issues
Annual disclosures
R1
R4
Transforming Communities
Aim 1: Keep community welfare
as the guiding principle for our
business decisions
Aim 2: Empower 2.5 million
individuals with enhanced skillsets
Transforming the Workplace
Aim 7: Prioritise the safety and
health of our workforce
Aim 8: Promote gender parity,
diversity, and inclusivity
Aim 9: Align with global
standards of corporate
governance
Transforming the Planet
Aim 4: Net Zero Carbon by
2050 or sooner
Aim 5: Achieving net water
positivity by 2030
Aim 6: Enhance our business
model by incorporating
innovative green practices
Aim 3: Uplift 100 million
women and children via social
welfare interventions
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Oil & Gas
Establish diversified R&R portfolio
to support the vision of contributing
to India’s 50% of domestic O&G
production
Zinc International
Completion of drilling programmes
and studies at Big Syncline
Completion of studies on East/
East Ext and Gamsberg South for
execution
Objectives for FY 2025-26
Objectives for FY 2029-30
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
Zinc International
Execution of 28 km of drilling across
greenfield and brownfield projects in
RSA and Namibia
Upgradation of 20 million tonnes of
ore; no addition of metal targeted
this year
Zinc India
Securing new tenements for R&R
growth
Target generation through the
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
Total R&R in Zinc India and Zinc
International
Total 2P+2C Reserves & Resources
in O&G
R1
R5
R9
KPIs
Risk
Delivering on growth opportunities
S3
Our large, well-diversified, low-cost and long-life asset portfolio offers attractive expansion opportunities. We continue to explore
brownfield opportunities within our existing portfolio, striving to grow operations both organically and inorganically. We employ a
prudent approach and rigorously evaluate these opportunities to ensure they meet our internal rate of return criteria and support
our objective stakeholder value-creation.
FY 2023-24 Update
Zinc India
Total mine development 101 km in
FY 2023-24
Zawar Mines has achieved highest
ever MIC of 179 kt in FY 2023-24
Shaft partition at SK increased
the shaft hoisting from 2.6 MTPA
in FY 2022-23 to 3.1 MTPA in
FY 2023‑24
Rampura Agucha Mines achieved
ever highest 566 kt MIC in
FY 2023‑24
Highest-ever mined metal production
1,079 kt in FY 2023-24
Highest-ever refined metal
production at 1,033 kt in FY 2023‑24
Highest-ever silver production of
746 tonnes in FY 2023-24
Battery electric vehicle introduced
at SK mine for sustainable &
environment-friendly mining
operations and net zero carbon by
2030 in line with the Company’s
ESG commitment
Successful completion of
Roaster 3 and pyro plant major
overhauling
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
Indigenous commissioning of
fumer plant at CLZS
Aluminium
Lanjigarh refinery capacity
expanded to 3.5 MTPA
Oil & Gas
Production ramped up from
Jaya discovery in OALP Cambay
region.
Infill drilling in Mangala, Bhagyam,
Aishwariya, Tight Oil (ABH) and
Tight Gas (RDG), to augment
reserves and mitigate natural
decline
29 wells drilled across all assets
Zinc International
Total zinc MIC production at
208 kt in FY 2023-24
Oil & Gas
Exploration and appraisal drilling
across the portfolio in Rajasthan,
Cambay, Northeast and Offshore
blocks to add resources
Establish potential of the
unconventional Oil & Gas in the
portfolio
Monetisation potential of the
resource base comprising Tight
Oil, Satellite Fields, to enhance oil
recovery opportunities
Zinc International
Execution of 30 km of drilling across
greenfield and brownfield projects in
RSA and Namibia
Addition and upgradation of
30 million tonnes of ore (2 million
tonnes metal)
Objectives for FY 2024-25
Zinc India
Target generation and drill testing:
Zawar, RD-SK, RA & Kayad Mine
Exploration plan to enhance the mineral
resource by 20 million tonnes Ore
Acquiring new potential areas through
auction
Ore reserves upgradation for sustained
mine production for next 10 years
Use of AI and ML algorithms to
analyse HZL geological, geochemical,
and geophysical data leads to
quicker new target identification and
evaluation
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. 1,080 -
1100 kt
Capacity expansion through erection
of Roaster-6
New leaching & cell house to be
erected in Debari with a capacity
of 210 KTPA and other efficiency
improvement initiatives to achieve
overall finished good production of
1.1 MTPA
Best-in-class new HZDA production
facility (HZAPL) to cater to demand
of Indian market
Waste to Wealth:
Fumer: Complete ramp-up of
fumer to produce 33 million tonnes
silver through zinc route
Tailings and Jarofix: Partners
already locked in for residual metal
recovery from waste streams,
completion of technical evaluation
and pre-feasibility analysis
targeted in FY 2024-25
Objectives for FY 2024-25
Zinc India
Further ramp-up of underground
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 started at
RDM to increase treatment capacity
from 1.1 MTPA to 1.5 MTPA
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Overall 3 MTPA operational Hot Metal
capacity
100% value - added product portfolio
focussed on India domestic market
All coal blocks operating at 100% of
permitted capacity to enable captive,
low-cost supply for captive thermal
power plants
Oil & Gas
Full field scale ASP project execution
across MBA fields in Rajasthan block
to monetise reserves
Continuation of monetisation
opportunities across asset portfolio
(supported by organic and inorganic
strategies)
Zinc International
Gergarub mining and concentrator
plant planned to be in production
by FY 2026-27, delivering MIC of
100 KTPA
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
Gamsberg Smelter planned to treat
all zinc concentrate from current
operation. Planned first production
in FY 2029-30. First phase planned
to produce 300 KTPA
Objectives for FY 2029-30
Zinc India
Ramp-up of underground mines to
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
Aluminium
Achieve balanced fully vertically
integrated supply chain from mine
to metal
Sijimali Bauxite mine operating at
12 MPTA
Lanjigarh Refinery operating at
6 MTPA
Volume
Revenue
ROCE
FCF post-capex
Growth capex
R8
R9
KPIs
Risk
Optimise capital allocation and maintain a strong balance sheet
S4
Balance sheet integrity is key to ensuring financial stability and long-term success in a dynamic environment. Through a focus on
enhancing operational cashflows, stringent capital discipline of investing in high IRR projects and proactive liability management,
we continue to strengthen our balance sheet. To maximise shareholder returns, we undertake evaluating all investments (organic
and acquisitions) as per our stringent capital allocation framework.
FY 2023-24 Update
Free cash flow (FCF) at
` 11,427 crore
Net debt at ` 56,338 crore
Net Debt/EBITDA at 1.5x on a
consolidated basis
Dividend worth ` 29.5/share
declared by VEDL
Objectives for FY 2024-25
Generate healthy free cash flow from
our operations
Disciplined capex across projects to
generate healthy ROCE
Improve credit ratings
Reduce working capital
FCF post-capex
Net Debt/EBITDA (Consolidated basis)
EPS (before exceptional items)
Interest cover ratio
Dividend
KPIs
R9
R10
R13
R11
Risk
Objectives for FY 2025-26
Zinc India
Ramp-up of underground mines to
reach 1.25 MTPA capacity
Study on alternate access to the
portal at Rampura Agucha
Commissioning of vertical conveyor
at SKM to mine high-grade shaft
pillar area
Transition to one-third BEV
deployment at RA & SK Mines
Completion of Mill 3 at Zawar to
increase beneficiation capacity
Establishment of a new tailing dam
at Zawar mines
Commissioning of Roaster-6
Complete construction of new
leaching & cell house in Debari
Set up 510 KTPA Fertiliser plant in
Chanderiya
Up to 450 MW green energy sourcing
in operations
Aluminium
Complete full ramp-up of Lanjigarh
3 MTPA expansion, and progress
implementation of debottlenecking to
6 MTPA
Complete ramp-up of BALCO
smelting expansion to 1 MTPA
Ramp-up all VAP production to full
capacity
Operationalisation of Ghogharpalli
Coal Block
Further ramp-up of all operating
mines towards full permitted
capacity
Zinc International
Full ramp-up of Gamsberg Phase 2
project in FY 2025-26
Skorpion Refinery conversion –
Completion of conversion project
final decision to be taken by
FY 2025-26
Gamsberg mining operations
from underground start up, with a
plan to increase throughput from
8 MTPA to 9 MTPA from current
processing plants
Oil & Gas
Infill wells across the onshore
and offshore producing blocks for
incremental volumes
Commence execution of Alkaline
Surfactant Polymer (ASP) project at
Mangala through cluster approach to
deliver incremental volume
Monetisation of discoveries from
OALP, DSF and PSC block
Establish secondary methods of oil
recovery in offshore fields
Zinc International
Gamsberg Phase 2 project 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 H2 FY 2024-25
Skorpion Refinery conversion –
awaiting confirmation of power tariff to
take the final decision before beginning
on-ground execution in FY 2024-25
Black Mountain Iron Ore project
intends to recover iron ore (magnetite)
from the BMM tailings. Best-in-class
quality iron ore will be produced from
the new plant with Fe grade >68%. First
production is expected in Q3/Q4
Objectives for FY 2024-25
Aluminium
Ramp-up Lanjigarh Train 1 and
commission and ramp-up of Train 2
Commence production at BALCO
414 KTPA capacity expansion
Jharsuguda VAP expansion to
1.6 MTPA and BALCO VAP expansion
to 1 MTPA to commence production
Commence production at BALCO of
Rolled Product expansion to 100 kt
capacity
Operationalise Kurloi North &
Radhikapur West Coal Blocks
Commence initial production from
Sijimali Bauxite block
R12
Supply delays on account of
logistics disruption
Business partner contract
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and realise higher net effective
premium
Zinc International
300 KTPA production from South
Africa at a low cost of production
Aluminium
100% backward and forward
integration: 3 MTPA Aluminium, 6
MTPA Alumina, 100% VAP, 100%
coal & bauxite security (Captive +
Linkage)
First Decile position on global
aluminium cost curve
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
Zinc International
1 MTPA production from South Africa
at a low cost of production
Objectives for FY 2025-26
Objectives for FY 2029-30
Zinc India
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
Aluminium
Lower hot metal cost of production
through increased captive Alumina &
Coal consumption
Zinc India
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
Further increase in rail share for coal
and other bulk commodities driving
lower costs
Continued focus on quality,
asset reliability and optimisation,
digitalisation, innovation, and R&D
Further ramp-up of VAP production,
including introduction of new
innovative alloys, to capture
increased share of domestic market
EBITDA
Adj. EBITDA margin
FCF post-capex
ROCE
R1
R3
R7
R11
KPIs
Risk
Operational excellence and cost leadership
S5
Achieving all-round operational excellence is central to our objective of achieving benchmarked performance. Through efforts
like debottlenecking assets to enhance production, investing in advanced digital and technology solutions and adopting best
practices, we set new benchmarks in operational efficiency. We also focus on enhancing profitability through ongoing cost
optimisation and improving realisations with prudent marketing strategies.
FY 2023-24 Update
Zinc India
Ore production of 16.52 million
tonnes
Record mined metal production
of 1,079 kt, refined zinc-lead
production of 1,033 kt and silver
production of 746 tonnes
APC commissioned at all the
beneficiation plants of Rampura
Agucha
Smelters recovery improvement
through various initiatives
Volume enhancement through
operations of pyro plant on lead-
zinc mode for 6 months
40% reduction in cost of
generation of power by improving
efficiency and percentage
of Indian coal in the blend
Achieved ever lowest specific coal
consumption of 422 gm/kWhr at CPP
Aluminium
Record aluminium production at
2,370 kt, up 3% Y-O-Y
Highest ever domestic sales at 920 kt,
19% increase Y-O-Y
Alumina production at Lanjigarh
refinery at 1,813 kt, up 1% Y-O-Y
Aluminium COP at US$ 1,796 per
tonne, down by 23% Y-O-Y, due to
decline in commodity prices, majorly
coal and carbon, and operational
improvements
Oil & Gas
Average gross-operated production
of 128 Kboepd for FY 2023-24,
down 11% Y-O-Y, owing to natural
field decline
First Field Development Plan (FDP)
approved under OALP regime for
Jaya field. This is the first FDP
approved in OALP regime, among
144 blocks awarded under 8 OALP
rounds by the Government to
various companies
Zinc International
BMM achieved production of
61 kt in FY 2023-24 with declining
grades at Deeps impacting
production
Gamsberg production was 147 kt
production in FY 2023-24 which
is lower compared to previous
year due to impact of geotechnical
failure on ore production
Skorpion remained under care and
maintenance following geotechnical
instabilities in the open pit
Objectives for FY 2024-25
Zinc India
Maintain cost of production between
US$ 1,050 - US$ 1,100 per tonne
through efficient ore hauling, higher
volume and grades and higher
productivity through ongoing efforts
in automation and digitalisation
Switching to RE power from CPP
(partially at DSC zinc smelter).
Increase in Indian coal consumption
in blend (>40%) for power production
Aluminium
Highest-ever production from
refinery, with start of alumina
production from 3 MTPA expansion
Highest-ever annual aluminium
production projected at
2,370‑2,450 kt
Significant reduction in aluminium
production COP, through unlocking
potential in operational & buying
efficiency
Improved raw material (bauxite &
coal) security from local sources
with ramp-up of owned mines
Reduced power purchase due to
higher operational efficiency of
captive thermal power plants
Increased rail share of domestic
overland transport
Oil & Gas
Increase production from existing
assets through the use of leading-
edge technologies, large-scale AIML
(artificial intelligence and machine
learning) enabled base
Operations and Maintenance
(O&M) model in partnership with
best‑in‑class partners
Continue to operate at a low
cost‑base and generate free cash
flow post-capex
Zinc International
Ramp-up Gamsberg to 200 kt in
FY 2024-25
BMM improvement in ore production
from 1.6 mt to 2.0 mt resulting in
70 kt MIC production
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Risk Governance Framework
Board of Directors
Audit Committee
Business Unit Management Teams
GRMC
ExCo
Group Risk Governance Framework
External
Strategic
Operational
Financial
Evaluate
Monitor
Mitigate
Identify
RISK MANAGEMENT
NAVIGATING DYNAMIC RISKS
AND OPPORTUNITIES FOR
TOMORROW’S SUCCESS
We have deployed a multi-layered risk management system and robust
governance framework to proficiently identify, assess, monitor and mitigate
risks inherent to global businesses. Aligned with our vision and mission, these
mechanism facilitates in effective execution of strategies am idst a volatile
external context.
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CORPORATE OVERVIEW
STATUTORY REPORTS
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Risk Management
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67
Enterprise risk management
We have a robust risk management framework which is embedded in business-critical activities, functions and processes.
It ensures managing rather than eliminating the risk of failure to achieve business objectives and provides reasonable, and
not absolute assurance, against material misstatement or loss. Materiality and risk tolerance are key considerations in our
decision-making.
This framework is simple and consistent, providing clarity on managing and reporting risks to our Board. Together, our
management systems, organisational structures, processes, standards and Code of Conduct and ethics represent the internal
control systems that govern how the Group conducts its business and manages associated risks.
Approach to risk identification
We identify risks at the individual
business level for both existing
operations and ongoing projects
through a consistently applied
methodology. Business-level review
meetings are conducted at least once
every quarter to formally discuss risk
management. All business divisions
maintain their risk matrix every quarter,
which is reviewed by the respective
management/executive committee,
with CEO as the chairman. Additionally,
business divisions have their risk
registers as per their operational size
and the number of SBUs/ locations.
The respective businesses review the
risks, changes in their nature, exposure
since the last assessment and control
measures to decide further action
plans. Control measures stated in
the risk matrix are also periodically
reviewed by the business management
teams to verify their effectiveness.
These meetings are chaired by the
CEOs of the respective businesses and
attended by CXOs, senior management
and functional heads concerned.
Finally, the risks across the various risk
registers are aggregated and evaluated
to identify the Group’s principal risks
and formulate a response mechanism.
This element is an important
component of the overall internal
control process for which the Board
obtains assurance.
Risk governance
The risk officers at each business and
the Group level create risks awareness
among the senior management and
nurture a risk management culture
within the businesses. Risk-mitigation
plans form an integral part of KRAs/
KPIs of process owners. Governance
of risk management framework in
the businesses is anchored with the
leadership teams.
The Audit Committee & Risk
Management Committee aids the
Board in the risk management process
by identifying and assessing any
changes in risk exposure, reviewing
risk-control measures and approving
necessary remedial actions. The
Committee is supported by the Group
Risk Management Committee (GRMC),
which helps it evaluate the design and
operating effectiveness of the risk
mitigation programme and the control
systems. The Risk Management
Committee meets quarterly to discuss
risks and mitigation measures, review
the robustness of our framework and
map the progress against actions
planned for key risks.
The GRMC comprises the Executive
Director, Group Chief Financial Officer
and Director - Management Assurance.
The Group Head - Health, Safety,
Environment & Sustainability is invited
to attend these meetings. GRMC
discusses key events impacting the risk
profile, relevant risks and uncertainties,
emerging risks and progress against
planned actions.
The Board shoulders the ultimate
responsibility for managing risks and
ensuring the effectiveness of internal
control systems. This includes a review
of the Audit and Risk Management
Committees report report on the risk
matrix, significant risks and mitigating
actions. Any systemic weaknesses
identified by the review are addressed
by enhanced procedures to strengthen
the relevant controls, which are
reviewed regularly.
The responsibility for identifying and
managing risks lies with every manager
and business leader. Additionally, we
have key risk governance and oversight
committees in the Group. They are:
Committee of Directors (COD)
comprising of Executive Directors
and an Independent Director
supports the Board by considering,
reviewing and approving all
borrowing and investment-related
proposals within the overall limits
approved by the Board. The invitees
to these committee meetings are the
CEO, business CFOs, Group Head
Treasury and BU Treasury Heads,
depending upon the agenda matters.
Audit and Risk management
committee along with the
Sustainability committee reviews
sustainability-related risks
In addition to the above, there are
various group level ManCom such
as Commercial ManCom, Finance
ManCom, Sustainability - HSE
ManCom, CSR ManCom, etc. who
work on identifying risks in those
specific areas and mitigating them.
The scope of work, authority and
resources of the Management
Assurance Services (MAS) are regularly
reviewed by the Audit Committee.
The responsibilities of MAS include
recommending improvements in the
control environment and reviewing
compliance with our philosophy,
policies and procedures.
The planning of internal audits is
approached from a risk perspective.
In preparing the internal audit plan,
reference is made to the risk matrix,
and inputs are sought from the senior
management, business teams and
members of the Audit Committee.
In addition, we refer to past audit
experience, financial analysis
and the prevailing economic and
business environment.
The Board, with the assistance of
the management, conducts periodic
and robust assessments of principal
risks and uncertainties of the
Group, and tests the financial plans
associated with each.
Managing our risks
Below are the key risks identified for FY 2023-24 with the potential to impact our operations. Their order does not necessarily
reflect the likelihood of their occurrence or the relative magnitude of their impact on Vedanta’s businesses. The risk direction of
each risk has been reviewed based on events, economic conditions, business environment and regulatory changes during the year.
Potential impact on the Group
The resources sector is mandated to
adhere to extensive health, safety and
environmental (HSE) laws, regulations
and standards, alongside keeping
up with the evolving requirements
and stakeholder expectations. These
regulations are projected to intensify
over the next decade, with large-scale
environmental damage and failure
of climate change mitigation and
adaptation ranking among the top 10
risks in the World Economic Forum Global
Risk Report 2023.
Our global presence exposes us to
jurisdictions implementing or planning
emission regulations. This may lead to
increased fossil fuel costs, levies for
exceeding emissions levels, litigations
and an increase in administrative
expenses for monitoring and reporting.
Increasing greenhouse gas (GHG)
emission regulations, including the
carbon emissions trading mechanisms
and tighter emission reduction targets,
can raise costs and dampen demand.
Sustainability risks
01
Mitigating actions
Prioritising health, safety and
environment (HSE)
Safety first culture: We are committed
to compliance with international and
local regulations, protecting our people,
communities and the environment,
ensuring minimal business disruptions
caused by HSE incidents.
Robust management systems: We
have comprehensive policies and
standards to mitigate HSE risks, and
ensure continuous improvements
through regular reviews and positive
compliance reporting. High-risk areas
receive special attention through
ongoing safety standard updates.
Leadership by example: Our site
leadership actively promotes a “visible
felt leadership” approach to safety,
focussing on safety-critical tasks
and managing business partner HSE
performance.
Continuous learning environment: We
are constantly improving our incident
investigation and learning processes
to prevent similar incidents from
recurring.
Sustainability: a core value
International best practices: Vedanta’s
sustainability framework aligns with
international best practices and our
structured assurance programme
across various business divisions
guarantees comprehensive coverage
of HSE, community relations, and
human rights aspects. This approach
embeds sustainability throughout our
operations.
Employee well-being: All businesses
have comprehensive occupational
health & safety policies supported by
structured processes, controls and
technology to ensure employee well-
being.
Performance-driven safety culture:
Safety key performance indicators
(KPIs) are integrated into all employee
performance evaluations, further
incentivising safe behaviour and
effective risk management.
Climate change action
Carbon reduction strategy: The Energy
& Carbon Community of Practice
(COP), ensures active development and
recommendation of carbon reduction
strategies to the Executive Committee
and Board.
Renewable energy focus: We are
dedicated to increasing our reliance
on renewable energy sources to fulfil
power obligations.
GHG reduction initiatives: Our
Group companies are actively
working to reduce greenhouse gas
(GHG) emission intensity across all
operations.
Strategy at risk
S1 Continuous focus on world class
ESG performance
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
Capitals at risk
Health, safety and environment (HSE)
R1
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Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
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69
Potential impact on the Group
Our success in existing operations and
future projects hinges on strong support
and healthy relationships with local
communities. Failure to address local
concerns and expectations can strain
relations, impacting our reputation and
social licence to operate and grow.
Mitigating actions
Building strong stakeholder
relationships
At Vedanta, we recognise the importance
of fostering positive and collaborative
relationships with all stakeholders. To
mitigate potential risks in this area, we take
a multi-pronged approach:
Comprehensive CSR strategy
Community-centric focus: Our Corporate
Social Responsibility (CSR) initiatives
prioritise the needs of local communities,
aligning with the Companies Act, CSR
Guidelines, National Voluntary Guidelines,
and UN Sustainable Development Goals
(SDGs). This ensures meaningful local
development.
Proactive engagement: Our business
unit (BU) teams actively engage with
communities and stakeholders through
structured plans, fostering a partnership
approach.
Strategic planning & governance: Our
dedicated CSR Management Committee
(ManCom) meets regularly to review
and approve CSR strategy, execution,
and communication. Business Executive
Committees (ExCos) consider these
inputs alongside strategic business
priorities to determine CSR focus areas
and budgets.
Effective grievance redressal
Standardised processes: All BUs follow
established procedures for recording
and resolving community and external
grievances, along with clear social
investment processes.
Dedicated resources
Community development teams: Each BU
has a Community Development Manager
(CDM) within the ExCo, supported by a
team of community professionals which
ensures consistent engagement and
effective project implementation.
Building trust and transparency
Regular community engagement: Our
business leadership teams hold regular
interactions with local communities to
build trust and relationships based on
mutual benefit.
Responsible operations: We strive to
identify and minimise any potential
negative impacts from our operations.
This includes acting transparently and
ethically, fostering open dialogue, and
adhering to commitments made to
stakeholders.
Stakeholder engagement and
communication
Strategic communication: We enhance
our visibility through a strategic CSR
communication approach which
includes regular meetings with key
stakeholders, showcasing our technology
advancements and increasing organic
social media engagement.
Comprehensive reporting: We report on
best practices and performance across
environmental, social, and governance
(ESG) aspects, ensuring transparency and
accountability to all stakeholders.
Managing relationships with stakeholders
R2
Strategy at risk
S1 Continuous focus on world class
ESG performance
S3 Delivering on growth opportunities
Capitals at risk
Potential impact on the Group
Mining operations involve the release of waste
material which can lead to loss of life, injuries,
environmental damage and impact production.
This can impact our reputation and have
financial implications. A tailings dam failure is
deemed a catastrophic risk – a low-frequency
but highly severe event – and remains a
continuous risk requiring the highest priority.
Tailings dam stability
R3
Strategy at risk
S1 Continuous focus on world class
ESG performance
S3 Delivering on growth opportunities
S5 Operational excellence and
cost leadership
Capitals at risk
Mitigating actions
We prioritise tailings dam safety through a
multi-pronged approach:
Accountability and continuous
improvement
BU accountability: All BUs are responsible
for continuous management of all tailings
facilities, supported by experienced
personnel with oversight from the
Executive Committee (ExCo).
Independent reviews and oversight:
We conduct independent third-party
assessments annually to evaluate
the implementation of best practices
year-on-year. Additionally, a third party
is engaged every three years to review
tailings dam operations. This includes
identifying improvement opportunities,
necessary remedial work and assessing
Operational Maintenance and Surveillance
(OMS) manuals implementation across all
operations.
Technology and best practices: We
are continuously digitalising tailings
monitoring systems for improved
efficiency and data analysis. Our tailings
management standard is regularly
updated to incorporate the latest best
practices, including those established by
the UNEP/ICMM Global Tailings Standard.
Enhanced standards and procedures
We have augmented the Vedanta
Tailings Management Standard adding
robust features. These include annual
independent reviews of each dam and
half-yearly CEO sign-off confirming
adherence to design parameters and
the recent surveillance audit. Further,
we prioritise transitioning to dry tailings
facilities where feasible.
Management personnel responsible
for dam management receive ongoing
training from third-party experts and
international consultants.
Operational risks
02
Potential impact on the Group
Our operations might be subject to several
challenges including sourcing raw materials
and infrastructure-related aspects and
concerns around ash utilisation/evacuation.
Mitigating actions
We have made significant progress in
optimising operations and solidifying our
position for the future. Here are some key
highlights:
Improved margins and production
Despite challenges in the London Metal
Exchange (LME) prices, the Aluminium
business has achieved consistent
performance with highest-ever production
and improved EBITDA supported by a
consistent focus on cost reduction and
aggressive pursuit of debottlenecking
projects. We will continue this pursuit
targeting 1,000 US$/t EBITDA margin and a
record‑breaking 3 MTPA production.
The first 1.5 MTPA train of Alumina Refinery
expansion at Lanjigarh was commissioned
on 31 March 2024 and is in the process of
being ramped up to full name-plate capacity.
In parallel, efforts are underway to get the
second train operationalised by Q2FY25. This
two‑stage expansion marks a significant
milestone in our journey towards becoming
fully self-sufficient for Alumina supply.
Dedicated teams are actively working to
operationalise newly‑acquired Bauxite Mine at
Sijimali by Q3FY25 with an objective to achieve
100% captive bauxite. This, combined with
other existing domestic sources under long-
term agreements, significantly bolsters our
Bauxite Security and enhances our margins.
Our coal mine at Jamkhani is fully operational
and running at full approved capacity. Our
teams are also working on the ground
to secure all necessary approvals and
operationalise the newly‑acquired coal mines
at Kurloi, Radhikapur and Ghogharpalli. These
endeavours will ensure our achievement of
100% security of low-cost, good quality coal
through captive coal mines.
The Company has introduced a [few] captive
rakes at our businesses as we endeavour
to shift all overland transport from road to
rail. This will improve safety, reduce cost and
increase security of supply. More rakes will be
placed in circuit in coming years.
Operational Efficiency
Enhanced Asset Reliability: Reliability of
Assets have been significantly improved
across all the units, delivering the highest
ever power load factor (PLF), improved
operational parameters and ultimately
resulting in the highest ever production
volume.
Value-Added Products: We are increasing
the capacity of our value-added facilities
to enhance the product mix and meet
the evolving needs of our sophisticated
customers. This enables us to further
augment our margins through higher net
effective premium (NEP) for our products.
Robust infrastructure and logistics: The
Company has introduced few captive rakes
at our businesses as we endeavour to shift
all overland transport from road to rail. This
will improve safety, reduce cost and increase
security of supply. More rakes will be placed
in circuit in coming years.
Waste management: We pursued
agreements with cement companies, NHAI,
and Brick Industries for Ash evacuation, and
implemented mine backfilling. Additionally,
we secured a patent for an innovative
process to reduce Red Mud generation by
30% and enhance alumina yield by extracting
iron from the bauxite ore before introduction
to the Bayer process
Operational challenges in Aluminium and Power business
R4
Strategy at risk
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
S5 Operational excellence and
cost leadership
Capitals at risk
Potential impact on the Group
Our expanding operations and production
rates necessitate accelerated exploration
and prospecting initiatives to replenish
reserves and resources (R&R) faster
than depletion. Failure to discover new
resources or enhance existing ones could
hinder our growth prospects. Besides,
estimating ore and oil and gas reserves
involves various uncertainties, owing
to geological, technical and economic
assumptions which are time-bound and
subject to change with new information.
Mitigating actions
Governance mechanism
We have a dedicated Exploration
Executive Committee to develop and
implement strategy and review projects
group-wide
Our dedicated exploration cell
maintains persistent focus on
enhancing exploration capabilities
Robust exploration practices
Reserve and resource growth: We
ensure adequate capex allocation
for exploration, prioritising R&R
growth through a continuous drilling
and exploration programme and
leveraging modern technologies for
operational efficiency
New exploration applications:
Continue to make applications for
new exploration tenements in our
operational countries under their
respective legislative regimes
Collaboration: Collaborating with
international technical experts to
strengthen our exploration capabilities
Discovery risk
R5
Strategy at risk
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
Capitals at risk
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71
Potential impact on the Group
As our reliance on computers and network
technology for operational efficiency
increases, so does our vulnerability to
security breaches. These breaches could
result in theft, disclosure or corruption
of critical information, a potential
misappropriation of funds or disruptions to
our business operations. Such cybersecurity
breaches pose a threat to our business
continuity and integrity.
Mitigating actions
Framework development and
implementation
Best practices and standards: We have
developed frameworks, policies and
procedures aligned with industry best
practices and international standards
Advanced security technologies: We
have implemented best-in-class tools
and advanced security technologies to
create a robust security posture
Risk assessments and controls
Risk assessments and controls: We
perform regular Risk Control Matrix
(RCM) and IT General Controls (ITGC)
assessments under SOx/ICOFR
frameworks to identify and mitigate
vulnerabilities
Plant technical security systems:
Dedicated initiatives to strengthen the
security landscape of plant technical
systems (PTS)
Framework development and
implementation
Capability building: Mandatory employee
training programmes to promote
cybersecurity awareness across all levels,
including leadership and the Board
Regular penetration testing: Reputable
external agencies conduct periodic
assessments of our IT systems and
governance framework, addressing any
identified vulnerabilities promptly
Social engineering defence: Conducting
a structured programme to educate all
stakeholders (employees, leadership,
Board) on social engineering tactics
to prevent cyberattacks. Aadoption of
various international standards relating
to information security, disaster recovery
and business continuity management, IT
risk management and setting up internal
IT processes and practices in line with
these standards
Breaches in IT/cybersecurity
R6
Strategy at risk
S5 Operational excellence and
cost leadership
Capitals at risk
Potential impact on the Group
Our operations face various circumstances
including equipment or infrastructure
damage, unexpected geological variations
or technical issues, extreme weather
conditions and natural disasters. Any
of these circumstances, beyond our
complete control, threaten operational
stability and could adversely affect
production and/or costs.
Mitigating actions
Insurance management and oversight
We have taken adequate Group insurance
cover to safeguard operations, with an
Insurance Council in place to monitor
coverage adequacy and claims status
Engaging reputable institutions to
underwrite our risk and an external
agency to review the risk portfolio and
adequacy of cover, assisting in managing
our insurance portfolio
Implementing a mechanism for periodic
insurance reviews across all entities,
acknowledging that occurrences not fully
covered by insurance could negatively
impact the Group’s business
Function monitoring and capability
building
Enhancing effectiveness of security and
Insurance function through continuous
monitoring and periodic reviews
Focussing on capability building within
the Group to enhance risk management
and insurance-related competencies
Loss of assets or profit due to natural calamities
R7
Strategy at risk
S1 Continuous focus on world class
ESG performance
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
S5 Operational excellence and
cost leadership
Capitals at risk
Compliance risk
03
Potential impact on the Group
We face challenges stemming from
legal and regulatory changes in the
multiple countries where we operate.
This may result in increased operating
costs, and restrictions such as higher
royalties or taxation rates, export duties,
alterations to mining rights/bans and
legislation change.
Mitigating actions
Proactive regulatory monitoring and
compliance
Proactive monitoring: The Group and
the respective BUs actively track
regulatory developments. The BUs
additionally ensures meeting regulatory
obligations, adapting to emerging
requirements
Responsible business advocacy:
We communicate our commitment
to responsible mining through
government and industry engagement
Best practices and governance
mechanism
Standardised system: A common
compliance monitoring system
across all Group companies, mapping
legal requirements and assigning
responsible personnel
Legal expertise: Our strong in-house
legal teams, reinforced by senior
professionals, work to strengthen the
compliance and governance framework
and effectively resolve legal disputes
Standardised procedures: Established
Standard Operating Procedures (SOPs)
to ensure consistent compliance
monitoring across businesses
Contract management: Ensuring
a robust contract management
framework by utilising boilerplate
clauses and standardising key
contract types.
Anti-bribery & corruption: Established
a framework to monitor performance
against anti-bribery and corruption
guidelines
Regulatory and legal risk
R9
Strategy at risk
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunity
S4 Optimise capital allocation and
maintain a strong balance sheet
Capitals at risk
Potential impact on the Group
Cairn India holds a 70% participating interest
in Rajasthan Block, whose production
sharing contract (PSC) was valid till 2020.
While it has been granted a 10-year
extension under the government’s policy
for extending Pre-New Exploration and
Licensing Policy (NELP) Exploration Blocks,
the terms are less favourable and subject
to certain conditions. Any deviation from
the anticipated production ramp-up could
potentially impact profitability.
Mitigating actions
Rajasthan PSC extension
A 10-year extension (15 May 2020 to
14 May 2030) has been executed by
the parties to the Rajasthan PSC on
27 October 2022
Pre-NELP Extension Policy’s applicability
to the Rajasthan Block is currently under
judicial review
Production and project management
Undertaking focussed efforts to manage
production decline including infill wells
and recovery projects in key producing
fields and exploration drilling across the
portfolio to add resources
Established dedicated Project
Management and Project Operating
Committees to support the outsourcing
partner and address issues promptly, to
enable better quality control and timely
execution of growth projects
Cairn-related challenges
R8
Strategy at risk
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
Capitals at risk
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FINANCIAL STATEMENT
Risk Management
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73
Potential impact on the Group
Our businesses are subject to the tax
regime. Any changes in tax structure or
any tax-related litigation may impact
our profitability.
Mitigating actions
Tax management approach
Regular engagement: We maintain
regular communication with tax
authorities to stay updated with changes,
enabling us to take proactive actions to
address issues and maintain compliance.
Maintaining high standards of integrity
with respect to tax compliance and
reporting
Actively participating in tax policy
consultation processes where appropriate
at a national or international level
Engaging internal and external experts
Dedicated expertise: Robust tax teams
with significant experience and expertise
to effectively handle tax matters at the
business and Group levels.
Tax-related matters
R10
Strategy at risk
S5 Operational excellence and
cost leadership
Capitals at risk
Financial risks
04
Potential impact on the Group
The Group’s product prices and demand
are susceptible to volatility/uncertainty,
influenced by global economic,
environmental, political, legal and social
conditions. Additionally, our global
operations and transactions in multiple
currencies expose us to risks associated
with exchange rate fluctuation. Any
adverse movement in these aspects may
negatively impact our earnings, cash
flow and reserves.
Mitigating actions
Ensuring operational resilience
Diversified portfolio: Our diversified
portfolio helps mitigate fluctuations in
commodity prices.
Low-cost production: Leveraging
effective technology, vertical integration
and operational improvement
measures to ensure low-cost
production. These strategies help
maintain profitability and steady cash
flow generation across the commodity
price cycle.
Deploying effective forex strategies
Hedging strategies: We primarily sell
products at market prices. However,
back-to-back hedging is employed
for custom smelting and purchased
alumina to mitigate specific risks.
Strategic hedging may be used with
Executive Committee approval.
Foreign exchange management: Our
policy prohibits forex speculation,
but robust controls allow hedging
currency risks on a back-to-back basis.
We progressively hedge short-term
exposures to mitigate near-term
currency fluctuations. The Finance
Standing Committee reviews all forex
and commodity risks and recommends
actions to business units.
Transparency and proactive
management: Significant currency
movements are discussed and
addressed at Group ManComs,
ensuring prompt action. The Annual
Report details the accounting policy for
currency translation.
Price (metal, oil, ore, power, etc.), currency and interest rate volatility
R11
Strategy at risk
S4 Optimise capital allocation and
maintain a strong balance sheet
S5 Operational excellence and
cost leadership
Capitals at risk
Potential impact on the Group
Failure to meet the stated objectives of
expansion projects may pose challenge in
achieving business milestones.
Mitigating actions
Centralised and effective project
management
Centralised project management: A
dedicated group-level cell effectively
monitors project progress, supported by
market research, leveraging data analytics
and benchmarking against industry
leaders.
Empowered teams and streamlined
systems: Streamlined project
management systems with empowered
structures along with fortnightly review
meetings with senior leadership ensure
accountability and value stream mapping.
Collaboration and cost reduction:
Fostering close collaboration with key
partners to optimise cost and timelines.
Excellence in project execution
Execution excellence: Ensuring superior
project execution and on-time project by
prioritising safety throughout the project
lifecycle, engaging reputable contractors
and utilising best-in-class technology and
equipment for optimal productivity and
safety. Digitalisation and analytics further
enhance efficiency.
Global expertise: Partnering with a global
engineering firm ensures life-of-mine
planning and capital efficiency aligned
with business goals.
Quality assurance: Employing robust
quality control procedures to ensure the
safety and quality of services, design, and
construction.
Geotechnical expertise: Engaging
reputable international agencies to
provide geotechnical modelling and
technical support when required.
Major project delivery
R12
Strategy at risk
S2 Augment our Reserves &
Resources (R&R) base
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
S5 Operational excellence and
cost leadership
Capitals at risk
Potential impact on the Group
Sustained adverse economic downturn
and/or suspension of any of our operations
can affect revenue and free cash flow
generation. This may hinder our ability to
meet payment obligations, affecting our
credit-worthiness, or make it challenging to
raise financing at competitive terms to fund
actual or proposed commitments.
Mitigating actions
Prudent financial management
Refinancing strategy: A dedicated team
diligently focusses on executing cost-
effective refinancing initiatives to extend
debt maturities.
Long-term funding: We actively focus
on building a pipeline of long-term funds
to meet refinancing and growth capital
expenditure needs.
BUs rigorously adhere to the Group’s
treasury policies, ensuring sound financial
risk management practices.
Building strong partnerships
Strong banking relationships: Vedanta
maintains good relations with banks,
which facilitates convenient access to
borrowings.
Credit rating engagement: We regular
engage in discussions with rating
agencies to enhance confidence in our
operating performance. CRISIL revised
ratings to “AA-” while India Ratings
revised ratings to “A+”. Both the rating
agencies have put the ratings on “Watch
with Developing Implications”
Access to capital
R13
Capitals at risk
Strategy at risk
S3 Delivering on growth opportunities
S4 Optimise capital allocation and
maintain a strong balance sheet
S5 Operational excellence and
cost leadership
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Risk Management
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75
Priya Agarwal Hebbar
Non-Executive Non-
Independent Director
BOARD OF DIRECTORS
THE LEADERS BEHIND
A STRONGER VEDANTA
2
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 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. To promote 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.
Area of expertise
Business leadership
Financial expertise
Natural resources
Capital projects
Global experience
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Mr. Anil Agarwal
Non-Executive Chairman
7
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 upholding
the highest standards of corporate
governance. 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.
Area of expertise
Business leadership
Financial expertise
Natural resources
Capital projects
Global experience
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Mr. Navin Agarwal
Executive Vice Chairman
5
3
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 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 Organisation) 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.
Area of expertise
Business leadership
Natural resources
Global experience
Corporate governance
Technology/digital
5
4
3
2
1
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 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.
Area of expertise
Business leadership
Financial expertise
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Mr. Upendra Kumar Sinha
Non-Executive Independent Director
1
2
3
Audit & Risk Management Committee
Nomination & Remuneration Committee
Corporate Social Responsibility Committee
4
5
6
Stakeholders' Relationship Committee
ESG Committee
Share and Debenture Transfer Committee
7
Committee of Directors
Member
Chairperson
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Board of Directors
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77
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 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.
Area of expertise
Business leadership
Financial expertise
Natural resources
Capital projects
Global experience
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Mr. Dindayal Jalan
Non-Executive Independent Director
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5
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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 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.
Area of expertise:
Business leadership
Financial expertise
Natural resources
Capital projects
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Mr. Akhilesh Joshi
Non-Executive Independent Director
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4
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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 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.
Area of expertise:
Business leadership
Financial expertise
Natural resources
Capital projects
Global experience
ESG
Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Ms. Padmini Sekhsaria
Non-Executive Independent Director
concentrator in South Africa. Mr. Misra
was appointed as Deputy CEO, HZL on
20 November 2019 and was elevated
to CEO & WTD, HZL with effect from
August 01, 2020. Mr. Misra is the 1st ever
Indian Chairperson of the International
Zinc Association. He is also the Vice
President of the Indian Institute of Mineral
Engineers. He is also the present Vice
Chairman of CII, Rajasthan. Mr. Misra
was awarded ‘CEO of the Year’ in the
Business Leader of the Year awards. After
graduating with a bachelor’s degree in
electrical engineering from IIT, Kharagpur,
Mr. Misra took a Diploma in Mining and
Beneficiation from the University of
New South Wales Sydney, and another
Diploma in General Management from
CEDEP, France. He possesses knowledge
of TQM, Six Sigma, TPM, and the Malcolm
Baldridge Model. Mr. Misra started his
career with Tata Steel as Maintenance
Head (Electrical), West Bokaro Coal
Washery in July 1988. He brings with
him a formidable 35 years of rich and
diverse experience in Tata Steel, where he
headed various strategic positions. In his
last assignment at Tata Steel, Mr. Misra
worked as Vice President — Raw
Materials Division. During his tenure at
Tata Steel, Mr. Misra led crucial portfolios
like Plant Operations, Mining Operations,
and Safety & Project Management.
Area of expertise:
Business leadership
Financial expertise
Natural resources
Capital projects
Global experience
ESG, Corporate governance
Mergers and acquisition
Government and
international relations
Technology/digital
Mr. Arun Misra
Executive Director
1
2
3
Audit & Risk Management Committee
Nomination & Remuneration Committee
Corporate Social Responsibility Committee
4
5
6
Stakeholders' Relationship Committee
ESG Committee
Share and Debenture Transfer Committee
7
Committee of Directors
Member
Chairperson
Mr. Arun Misra has been appointed as
an Executive Director w.e.f 01 August
2023. Mr. Arun Misra is also the CEO of
Vedanta’s Zinc Business and has also
been leading Hindustan Zinc Limited
(“HZL”), a subsidiary of the Company.
Mr. Misra has also been overseeing the
operations and growth of Vedanta Zinc
International which have their mines and
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EXECUTIVE COMMITTEE
SHAPING A BETTER TOMORROW
Mr. Arun Misra has been appointed as
an Executive Director w.e.f. 1 August
2023. He is also the CEO & Whole Time
Director of Hindustan Zinc Limited
(“HZL”), a subsidiary of the Company. He
was appointed as Deputy CEO, HZL on
20 November 2019, and was elevated
to CEO & WTD, HZL with effect from
1 August 2020. Mr. Misra is the 1st ever
Indian Chairperson of the International
Zinc Association. He was recently
elected as Chairman of CII Rajasthan
State Council and previously served as
the Vice Chairman. He is also the Vice
President of the Indian Institute of Mineral
Engineers. He was awarded the ‘CEO of
the Year’ in the ‘Business Leader of the
Year’ Awards. He is also recognised in the
22nd position of the Top 30 CEOs of India
by Startup Lanes. After graduating with a
bachelor’s degree in electrical engineering
from IIT, Kharagpur, Mr. Misra took a
Diploma in Mining and Beneficiation
from the University of New South Wales
Sydney, and another Diploma in General
Management from CEDEP, France. He
possesses knowledge of TQM, Six Sigma,
TPM, and the Malcolm Baldridge Model.
He brings with him 33 years of rich and
diverse experience in Tata Steel, where he
headed various strategic positions. In his
last assignment at Tata Steel, Mr. Misra
worked as Vice President - Raw Materials
Division. During his tenure at Tata Steel,
Mr. Misra led crucial portfolios like Plant
Operations, Mining Operations, and Safety
& Project Management.
Mr. Arun Misra
Executive Director VEDL and
WTD HZL, CEO, HZL
Mr. Ajay Goel
Chief Financial Officer
Mr. Ajay Goel was appointed as the
Chief Financial Officer of Vedanta
on 30th October 2023. He joined the
Company in March 2021 as Deputy CFO
and assumed charge as Acting CFO
in October 2021. Mr. Goel brings rich
multinational experience with global
companies in FMCG and Industrial
sectors namely GE, Nestle, Coca Cola,
and Diageo. As the CFO, Mr. Goel is
responsible for all aspects of finance,
including corporate governance, treasury
and funding, investor relations, financial
planning & analysis, accounting and
consolidation, secretarial, and risk
management. He also drives business
performance monitoring and reporting
with a focus on benchmarking and
analytics. He is a national rank holder
both as Chartered Accountant and
Company Secretary and a commerce
graduate from St. Xavier’s College,
Calcutta University.
Ms. Madhu Srivastava was appointed
as the Chief Human Resources Officer
of Vedanta in December 2018. She has
been associated with the Group since
the past 12 years and in her earlier role,
she was the CHRO for the Cairn Oil & Gas
business and was additionally leading
the Talent Acquisition and Diversity &
Inclusion functions for the Group. Under
her leadership, the Group has put in
place the right HR policies, progressive
people practices and frameworks for
talent acquisition and talent management
across Vedanta. Madhu has an overall
experience of 20 years across HR as
well as Sales, Marketing and Operations,
spanning the FMCG, telecom, ITES, BFSI
and natural resources industries. Madhu
commenced her professional journey
in 1999 with Godrej where she handled
Sales in Gujarat and Maharashtra and
later moved to the Corporate Sales
& Marketing role. Post working with
companies like GE Capital and Reliance
in Operations & Marketing profiles, she
started her Human Resources journey
in 2006 by joining Genpact as Assistant
Vice President of Talent Acquisition where
she led the middle management hiring.
She then went on to lead the recruitments
for Citibank’s India operations as Vice
President, HR before Joining Vedanta
in 2012. She has completed her
PGDM in marketing and sales, from
IIM, Ahmedabad.
Ms. Madhu Srivastava
Chief Human Resource Officer
Mr. Ajay Agarwal
President - Finance & Strategy
Mr. Ajay Agarwal is the President -
Finance and Strategy of Vedanta.
He has more than two decades of
leadership experience across various
finance verticals like Financial Planning
and Analysis, Corporate Finance,
Treasury, Investor Relations, Taxation &
Commercial functions. Mr. Agarwal brings
rich experience in finance consulting
and advisory with BIG 4 firms. He is
a Chartered Accountant and a lawyer
by profession. He joined Vedanta in
January 2021 and has successfully led/
contributed to various transformational
strategic projects in areas of Business
Finance, Strategic M&A, Corporate
structures, Tax optimisation, Tax Digital
Transformation, and Tax Litigation.
Backed by strong leadership skills
and experience in managing diverse
people, he has managed operations
comprising both scale and complexity
and has driven transformational change
agenda for the organisation. Further,
Ajay is a National Committee Member
at the Confederation of Indian Industry
(CII) and recently has been named
as a Chairman at ASSOCHAM for its
International Tax Council.
Mr. John Slaven was appointed as the
CEO of Aluminium, in October 2023.
Mr. Slaven spearheads key initiatives
towards unlocking the full potential of
the Aluminium Business to deliver 3
MTPA of integrated volume and being
amongst the top 3 aluminium players in
the world. He leads the overall strategy
of the Aluminium Business, including
development of strategic alliances to
fast-track business delivery, as well as
Marketing Strategies, ESG and Green
Aluminium Strategy. Mr. Slaven is a
reputed global leader who brings 34 years
of rich experience in the metal & mining
sector. He has worked across the entire
aluminium value chain in exploration,
growth projects, operations, sales, and
marketing. Before joining Vedanta, he
served as a member of Alcoa’s Executive
Leadership team as Executive Vice
President and Chief Operations Officer
responsible for Alcoa’s global bauxite
(45 MTPA), alumina (13 MTPA) and
aluminium (2.6 MTPA) assets. He has
also worked in key executive roles in the
Australian mining and metals major BHP
and led the Metals & Mining practice for
The Boston Consulting Group (BCG) in
North America. He holds a Bachelor of
Science degree in Mechanical Engineering
from the University of Cape Town and an
MBA from Harvard Business School.
Mr. John Slaven
CEO, Aluminium
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Mr. Sunil Gupta, COO of Vedanta
Aluminium and CEO of Vedanta
Jharsuguda, is a seasoned industry
expert with 29 years of diverse
experience. Having successfully
led both greenfield and brownfield
projects, he is strongly committed to
building world‑class operations. Sunil
joined Vedanta in February 2023 and
currently leads the strategic operations
of the company’s aluminium business
across its plants in Jharsuguda and
Lanjigarh in Odisha and BALCO in
Chhattisgarh, as well as overseeing the
mines business. Under his stewardship,
Vedanta’s aluminium production surged
to 2.4MTPA, with ambitious plans set
for 3 MTPA. His keen focus includes
expanding production, optimising the
availability of bauxite and coal resources,
integrating technology for value
addition, and championing sustainability
through sustainable practices, fostering
inclusive workplaces, and developing
community partnerships. Sunil’s
exceptional contributions to Corporate
Social Responsibility and Energy
Reduction have earned recognition
from various government agencies.
He serves as the Vice‑Chairman of the
CII Odisha State Council. Sunil holds
a B.E. in Electrical Engineering from
Government Engineering College, Ujjain,
and an international Management
degree from the International Institute
for Management Development,
Lausanne, Switzerland.
Mr. Sunil Gupta
CEO, Vedanta Jharsuguda and
COO, Vedanta Aluminium
Mr. Rajesh Kumar, CEO and Whole Time
Director of Bharat Aluminium Company
Limited (BALCO), has joined Vedanta in
February 2023. With an extensive career
spanning 35 years at Tata Steel’s Indian
and Thai units, he brings a remarkable
depth of expertise in operations,
maintenance, project implementation
and productivity improvement to
his role at BALCO.
In his current position, he is accountable
for overseeing a broad spectrum of
functions across Mines, Aluminium
Smelters, Power Plant operations and
Growth Project. His primary areas
of focus include driving production
volumes, optimising cost with operational
excellence, ensuring compliance with
environmental, social, and governance
(ESG) standards, leading growth initiatives,
managing business strategically coupled
with digitalisation and innovation,
fostering employee development,
and setting industry benchmarks for
best practices.
He has been instrumental in the
successful execution of large-scale
projects, mergers, and acquisitions. His
visionary leadership has consistently
achieved world-class standards in
production, productivity, and quality
across various manufacturing units.
Before joining BALCO, he was leading a
profit centre at Tata Steel and responsible
for driving P&L, Sales, Operations and
Commercial functions.
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. He also has
done General Management Program
from CEDEP, France and advanced TQM
program from JUSE, Japan. His academic
credentials, coupled with his extensive
professional experience, underscore his
capability and commitment to driving
BALCO’s success.
Mr. Rajesh Kumar
CEO and WTD, BALCO
Mr. Steve Moore was appointed as Dy.
CEO of Cairn Oil & Gas in July 2023. He is
steering Cairn’s growth strategy towards
producing 50% of India’s domestic Oil &
Gas and adding reserves and resources
to achieve Energy Aatmanirbharta,
whilst maintaining the highest level of
safety, sustainability and governance
standards. He has over 35 years of
rich global experience in technical and
leadership roles across the UK, Middle
East, and Southeast & Central Asia in
global majors like Shell, Maersk Oil,
Energean and Mubadala Oil. Steve holds
a PhD in Chemical Engineering from
Newcastle University.
Mr. Steve Moore
Dy CEO, Cairn Oil & Gas
Mr. Chris Griffith was appointed as the
CEO of Base Metals to head the proposed
Base Metals vertical effective October
2023. He leads the Group’s international
zinc business in South Africa and
Namibia and the entire copper portfolio
including KCM, Zambia, Fujairah, UAE, and
Sterlite Copper in India. Mr. Griffith was
the former CEO of Gold Fields, one of the
largest gold players globally. Before Gold
Fields, he served as the CEO of two major
businesses at global mining major, Anglo
American-Anglo American Platinum and
Kumba Iron Ore.
Mr. Chris Griffith
CEO, Base Metals
Mr. Puneet Khurana
Dy. CEO, Copper Operations
Mr. Puneet Khurana has been associated
with Vedanta since 2006 and presently
serves as the CEO of Copper and Nickel
Operations. Prior to this, he has been
in various cross-functional & cross-
business leadership roles in the Group
where he was instrumental in driving
the top line and bottom line by using
important levers i.e. increase in volumes,
reduction in cost, improvement in sales
realisation and free cash flow through
benchmarking and business partnering.
Mr. Khurana currently plays a pivotal role
in unlocking the full potential of Vedanta’s
Copper’s and Nickel operations in India
and the Middle East. Under his leadership,
the Company is undertaking strategic
growth and debottlenecking projects,
adopting cutting-edge global practices,
and embracing digitalisation. He places
a strong emphasis on customer service
excellence, highest quality standards,
ESG and leveraging technological
advancements to drive operational
efficiencies. Mr. Khurana holds a B. Tech
degree from AKG Engineering College,
Ghaziabad, and an MBA from ICFAI
Business School, Hyderabad. He has
been felicitated with the “CEO of the
Year Award – 2024” by Indian Achievers
Forum and “Great Manager Award” by
Economic Times.
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Mr. Pankaj Kumar Sharma was appointed
the CEO of FACOR, a leading producer and
exporter of Ferro Chrome in India in June
2023. He joined Vedanta in 2018 and has
made notable contributions to the field
of metal operations and functions and
has also held significant leadership roles
in BALCO and HZL. In his current role
as CEO, Mr. Sharma provides strategic
direction and overall leadership to ensure
exceptional business performance at
FACOR. His responsibilities span driving
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. With a professional
journey spanning 24 years, Mr. Sharma
has made substantial contributions
to the metal and cement industry. He
has worked with esteemed companies
such as JSW Cement, Century Textile
Industry Limited, Lafarge Holcim, and
ACC Ltd. He holds a degree in Mechanical
Engineering and has completed various
leadership development programmes
from globally renowned institutions and
is a certified Total Quality Management
(TQM) professional from AOTS Japan.
Some of his accomplishments include
being awarded the Chairman’s Award
for Best SBU Director, the People’s First
Leader by People First HR, and the
Business Leader of the Year Award by the
World HRD Congress.
Mr. Pankaj Kumar Sharma
CEO, FACOR
Pranab Kumar Bhattacharyya is an
esteemed and proficient executive
currently holding the position of CEO-
Alumina Business at Lanjigarh. He stands
out as a seasoned leader with a robust
record of driving business excellence
and fostering sustainable growth across
diverse industrial sectors. His career
spans over 30 years across multiple
domains including Copper, Alumina,
Fertilisers, and Chemicals. During his
tenure at Hindalco Industries – Copper,
Pranab occupied various strategic
roles, showcasing his leadership and
operational prowess. He also served
as Unit Head and Chief Manufacturing
Officer at Paradeep Phosphates. In his
current capacity, Pranab is responsible
for driving overall business performance,
EBIDTA, FCF and leading growth
initiatives with a strong emphasis
on Safety, Sustainability, Employee
Relations, and the implementation of
best-in-class ESG practices. He is also
actively leading the vertical integration
of the Alumina Business. Pranab holds
a BTech in Chemical Engineering from
the University of Calcutta and pursued
Post Graduation in General Management
from SP Jain Institute of Management,
Mumbai. He further honed his skills
as a ‘Kellogg Executive Scholar’ in
General Management from the Kellogg
School of Management.
Pranab Kumar Bhattacharyya’s
Leadership and Impact have been widely
recognised. He received the ‘Aditya Birla
Award for Outstanding Achievement -
2007’ from KM Birla during his tenure at
Hindalco, underscoring his exceptional
performance. Additionally, he has been
honoured with the ‘Kalinga Business
Excellence Award – 2021’ and the
‘Kalinga Leadership Excellence Award –
2022’ by the state pollution control board.
His dedication and valuable contributions
have also been acknowledged with a
special ‘Chairman Discretionary Award -
2024’ at Vedanta.
Pranab Kumar
Bhattacharyya
CEO, Alumina Business
Mr. Vibhav Agarwal joined Vedanta in
June 2022 and has been appointed as
the Chief Executive Officer of Power. With
over two and half decades of experience
across India’s leading Infrastructure
and power companies, he is a name
to reckon with in the Indian business
landscape. Mr. Agarwal is an Electrical
Engineer from NIT Warangal, and an
alumnus of IIM Mumbai with a stronghold
in projects, business development, and
finance. Having led the construction
of over 6,000 MW of power projects
from bidding to commercial operations,
he has proven expertise in managing
large, complex contracts, effectively
leveraging corporate affairs, driving policy
advocacy, turning-around loss making
entities, and leading transformations
resulting in agile and responsive
organisations. He has successfully led
critical areas of financing, restructuring,
divestments, portfolio management and
key strategic initiatives, adding value for
all stakeholders. He has well-rounded
experience across thermal, hydro,
and renewable power sectors giving
him comprehensive insights into the
complexities of the power sector.
Mr. Vibhav Agarwal
CEO, Power
Mr. Navin Jaju, CEO of Sesa Goa, Vedanta
Limited is a well-seasoned executive with
extensive diversified experience of over
19 years in the metal & mining sector.
He brings demonstrated leadership
experience in multiple business verticals
ranging from financial planning &
analysis, taxation, audits, accounting &
consolidation, compliance & secretarial,
risk management, expansions, new
acquisitions, and mergers and so on. He
has established a strong track record
of achieving business growth vision
with utmost focus on best-in-class
ESG standards, strategic directions,
team building, exceptional P & L results,
people practices and business process
re-engineering. In his current role, he
is responsible for overall business
performance, growth & expansions of
Vedanta’s Sesa Goa Business having
footprints across 5 states in India and
overseas operations in Liberia-West
Africa. Before he was appointed as the
CEO of Sesa Goa on 9 December 2022,
Mr. Jaju was the Chief Financial Officer
of Vedanta’s Iron & Steel sector and
was instrumental in effectively driving
business growth and expansions. He is
also well known for his vital contribution
to cross-functional & leadership roles
across the Vedanta Group including
Hindustan Zinc, BALCO, Sesa Goa and
Corporate. He is a qualified Chartered
Accountant (CA) from The Institute of
Chartered Accountants of India and holds
a bachelor’s degree in commerce from St.
Xavier’s College, Kolkata.
Mr. Navin Jaju
CEO, Sesa Goa
Mr. Ashish Gupta
CEO, ESL Steel
Mr. Ashish K Gupta is the Chief Executive
Officer of Vedanta, ESL Steel Limited,
and joined Vedanta in September 2022.
He holds a bachelor’s degree in electrical
engineering from IIT Roorkee and General
Management from XLRI, Jamshedpur
and CEDEP, INSEAD, France. Previously,
he worked with the Tata Steel group
for 27 years and was the Managing
Director of TMILL (Tata Steel JV) and
later with Texmaco Rail & Engineering as
the Managing Director. He brings over
30 years of rich & diverse experience in
leading various strategic positions within
the Tata Group. He has also been a board
member of Tata NYK, Singapore, TKM
Global and ISL, Dubai. He has proven
proficiency in the areas of capacity
exploitation and de-bottlenecking, cost
management, business growth and
operational efficiency, new business
development and management of large
workforce and organisation.
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Mr. Dhiraj Nayyar
Director - Economics & Policy
Mr. Dhiraj Nayyar was appointed as
the Director, Economics & Policy of
Vedanta in October 2019. Before that,
he was the Chief Economist of Vedanta
since October 2018. Between 2015 and
2018, Dhiraj was Officer on Special Duty
and Head of the Economics, Finance
& Commerce vertical at NITI Aayog,
Government of India. At NITI Aayog, he
was responsible for all policy matters
related to the Ministry of Finance and
Department of Commerce. Before joining
the Government, he did several stints in
senior positions in the media; as Opinion
Editor of Financial Express, Deputy
Editor of India Today, Editor-at-large of
Firstpost.com, Managing Editor of The
Quint and India Columnist for Bloomberg
View, New York. In 2013, he was awarded
a Bastiat Prize in Journalism by the
California-based Reason Foundation.
Mr. Nayyar was trained as an economist
at St. Stephen’s College, Delhi, Merton
College, Oxford (where he was a
Radhakrishnan Chevening Scholar) and
Trinity College, Cambridge (where he was
a Gates Cambridge Scholar). A prolific
writer, he is the author of Modi & Markets:
Arguments for Transformation, co-author
of Innovation Republic, and editor of two
books - Surviving the Storm: India and the
Global Financial Crisis and Dogs and Us:
Collected Short Stories. He writes regular
columns in Economic Times and Open
magazine and occasionally in Indian
Express and Times of India.
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 GCAl
and has been inducted into the ‘Global
Hall of Fame’ for his contribution to the
legal ecosystem 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.
Mr. Sanjeev Gemawat
General Counsel
Ms. Ritu Jhingon was appointed as the
Director of Communications in 2021 in
addition to CEO of Vedanta’s flagship
CSR programme - Nand Ghar. She plays
a vital role in positioning Vedanta’s
vision, commitment, and achievements
as well as continuous engagement with
key stakeholders. She is instrumental in
driving internal and external campaigns
and communication for the organisation
and leadership messaging across
multiple platforms, cultivating positive
brand image and establishing Vedanta
as a prominent philanthropic Group. Ritu
brings a rich experience of over 30 years
and has worked with Hindustan Times
and Ogilvy in the past. She has been
associated with the Group since 2010
and has made significant contributions by
institutionalising Vedanta’s flagship Nand
Ghar programme from conceptualisation
to a national movement and enhancing
Vedanta’s brand perception both in
India and globally. She holds a Master
of Business Administration Degree in
Marketing and Advertising.
Ms. Ritu Jhingon
Director Communications
& CEO Nand Ghar
Mr. Shrikant Saboo
Director - Commercial & Marketing
Mr. Shrikant Saboo was appointed as the
Director, Group Commercial, Marketing &
Risk of Vedanta in August 2022. His key
priorities include designing and driving
the Commercial, Marketing, E-commerce
and Risk strategies in line with global
best practices and unlock value for the
organisation. Further, his focus is on
building strong Commercial & Marketing
teams and robust OEM relationships to
achieve growth and profitability. He is
a Chartered Accountant and holds an
MBA from Emory University, Goizueta
Business School, Atlanta. He brings 30
years of rich and diverse experience
across Procurement & Supply Chain,
Corporate Finance, Treasury, Commodity
& Forex Risk Management,, Mergers &
Acquisitions & Business Strategy. He held
global leadership roles with Hindalco
Industries Ltd in India and with Novelis
Inc in the US. Before joining Vedanta,
he was with Indorama Ventures PCL in
Thailand, leading the global procurement
of key raw materials, strategising
the sales of specialty products, and
supervising the global Aromatics
finance & Asia logistics teams as Senior
Vice President and Chief Commercial
Officer- Feedstock.
Mr. D Srikanth
Director - Projects
Mr. D. Srikanth commenced his role as
Director - Projects at Vedanta, effective
4 October 2023. With 31 years of diverse
experience in strategic roles across
the EPC industry, he brings industry-
leading practices and cutting-edge
technology to ensure projects are
delivered within budget and on schedule.
Previously, Mr. Srikanth made significant
contributions at Reliance Industries
Ltd, Thyssen Krupp UHDE India Pvt
Ltd, Tecnimont ICB, J Ray McDermott
Middle East Inc, and Saipem. Before
joining Vedanta, he was associated
with Mundra Petrochem Ltd (Adani
Petrochemicals). His expertise includes
managing and commissioning multiple
projects, developing new project plans
as well as strategies, and feasibility
studies for additional downstream
products. He holds a bachelor’s degree
in chemical engineering from the
University of Mumbai and a Diploma in
Energy Management Technology from
Annamalai University.
Mr. Rohit Agarwal
Director - Management Assurance
Mr. Rohit Agarwal was appointed as
Director of MAS in December 2022. He
leads the overall Assurance vertical as
the custodian of ethics and integrity,
ensuring zero leakages across the
organisation with a specific focus on the
right people, right partners, right material
and right practices. His priorities are to
unlock value through business partnering,
use of the latest technology & data
analytics and enhance internal controls,
compliance & governance framework. He
is a qualified Chartered Accountant and
has been associated with the Group for
over 19 years with a brief stint outside
the Group. He joined as a Management
Trainee in 2005, worked in various
businesses across the 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 programmes/Chairman
Growth workshops. He has been a part
of various key transformational projects
in the finance domain over the years and
has contributed immensely to the growth
journey of Vedanta.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Executive Committee
86
87
Prerna Halwasiya
Company Secretary &
Dy. Head Investor Relations
Ms. Prerna Halwasiya was appointed
as the Company Secretary and
Compliance Officer of Vedanta in July
2018. She drives Vedanta’s unwavering
commitment to upholding the highest
standards of Corporate Governance.
She took up the additional role of Deputy
Head, Investor Relations in April 2023.
In this role, she works with the finance
leadership to enhance the quality, depth
and diversity of our investor base and
communicate the Company’s compelling
story through its vision, performance
delivery, project milestones and global
best practices. Her rich experience of
over 15 years in shareholder engagement
and multidisciplinary areas of secretarial
function is of immense value as the
Company strives to optimise value for
its shareholders. She joined Vedanta
Group in August 2007 and has since been
part of the Corporate Secretarial and
Compliance Function. She is a qualified
Company Secretary from the Institute of
Company Secretaries of India (ICSI).
Mr. Rajinder Singh Ahuja assumed
the critical role of Chief Health, Safety,
Environment & Sustainability at Vedanta
in July 2021. With an impressive 25 years
of rich and diverse leadership experience
spanning the Metal & Mining, Cement, and
Power industries, he brings a wealth of
expertise to the organisation. Mr. Ahuja
was conferred with the prestigious title
of ‘Most Influential Sustainability Leader
of India’ during the India Sustainability
Leadership Summit & Awards in 2019.
This accolade underscores his significant
impact on sustainable practices within
the industry. Currently, Mr. Ahuja leads
Vedanta’s ESG transformational journey,
aiming to establish the company as a global
ESG leader. His strategic vision focusses
on building a long-term ESG strategy and
governance to improve overall performance
and implement best practices in the
fields of Health, Safety, Environment,
and Sustainability. Leveraging industry
benchmarks, advanced analytics, and
digitisation, he ensures Vedanta remains
at the forefront of sustainable excellence.
Mr. Ahuja holds a bachelor’s degree in
electrical engineering from REC Bhopal.
His commitment to continuous learning
led him to participate in a year-long
leadership development programme
by Aon Hewitt and, more recently, the
SUSTAINABILITY 101 Course on ESG by
McKinsey. He is also a Dupont-trained
resource in Safety management systems,
including Safety Interaction, Contractor
Safety Management (CSM), Incident
Management (IM), Fatality and Serious
Injury Prevention (FSIPP), and Standard
Rules and Procedure (SRP).
Mr. Rajinder Singh Ahuja
Head - HSE & Sustainability
Mr. Gopal Prasad Choudhary was
appointed as the Chief Security Officer
of Vedanta in June 2022. He has been
associated with the Governing Body of
Rashtriya Raksha University, a Central
University and an Institute of National
Importance mandated to provide
security and strategic education in
contemporary and futuristic security
and strategic studies. He moved from
the Police Service to the Corporate
world in 2009 and has also served
Tata Steel as Chief Security & Brand
Protection and Wipro as Vice President
and Global Security Head. He acquired
expertise in Risk Management, Industrial
Security, Brand Protection, Supply Chain
Security, Port and Aviation Security,
Disaster Management, Loss/Fraud
Prevention and Management, Forensics,
Technical Convergence, Intelligence and
Surveillance, management of Naxalism,
terrorism, organised crime, etc. He has
held the positions of Secretary of the
Electronics City Industries’ Association,
Bangalore, and President of the
International Institute of Security and
Safety Management, a Not-For-Profit
organisation. He is a Law graduate and
served the Government of India and the
State Government for more than 19 years
as an Army and Police Officer.
Mr. Gopal Prasad Choudhary
Chief Security Officer
Mr. Gaurav Sarup was appointed as
the Director - ESG, Carbon, & Social
Performance of Vedanta in October
2020. He plays a vital role in setting the
Group’s ESG strategy, which includes
commitment to becoming a Net Zero
Carbon business. He also oversees
the progress on the Group’s nine ESG
targets and progress on disclosing ESG
performance in the annual Sustainability,
TCFD, BRSR and Integrated Reports.
He has been instrumental in driving
engagement with ESG rating agencies
to improve their overall outlook on
Vedanta’s ESG impact. With nearly
20 years of work experience across
multiple sectors, Mr. Sarup brings rich
experience as a sustainability & ESG
professional. He joined Vedanta in
2013-14 in the Oil & Gas business and
has been part of the Group sustainability
function since 2017-18. He holds an MBA
in Sustainability from Boston College’s
Carroll School of Management.
Mr. Gaurav Sarup
Director - ESG, Carbon, &
Social Performance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Executive Committee
88
89
STAKEHOLDER ENGAGEMENT
STRONGER VEDANTA BUILT
ON STRONGER RELATIONS
At Vedanta, effective stakeholder engagement is pivotal in establishing stronger
relationships. It helps us to identify and address the concerns of our stakeholders,
fostering greater trust and collaboration. These engagements further allow us to
better understand the operating context and gain valuable insights that shape our
decision‑making process and strategies. This empowers us to stay at the forefront
of opportunities, securing sustainable growth and 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.
Key Expectations
Undertaking need-based community
infrastructure projects
Increasing reach of community
development programmes
Provision of jobs & other means of
livelihood
Improving grievance mechanism
How We Engage
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
How We Engage
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
How We Engage
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
How We Engage
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
How We Engage
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
How We Engage
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
Key Expectations
Safe workplace
Improved training on safety
Increased opportunities for career growth
Increasing the gender diversity of the
workforce
Key Expectations
Consistent disclosure of economic,
social, and environmental
performance
Key Expectations
Expectations of being aligned with
the global sustainability agenda
Compliance with Human Rights
Key Expectations
Consistent implementation of the
code of business conduct & ethics
Ensuring contractual integrity, data
privacy
Key Expectations
Compliance with laws
Contributing towards the
economic development of the
nation
Local Community
Civil Society
Employees
Industry (Suppliers,
Customers, Peers, Media)
Shareholders,
Investors, & Lenders
Governments
Initiatives in FY 2023-24
Completed baseline, need, impact and
SWOT assessments in all BUs
Community grievance process followed
at all operations
Launched Project Panchhi to help
young women in the local communities
get higher education and placed in
Vedanta’s workforce.
`438 crore
of CSR investment
17.4 million
community members
benefited
2.3 million man-hours
of safety training
40% of all new hires are women
31 man-hours
Average training man-hours for
total workforce
` 3,300 crore
Employee Benefit Expense
73% Employee Satisfaction
` 29.5 per share
declared dividend
4,076
No. of people trained
through our skill training
programmes
` 38,095 crore
Local Procurement
~` 54,402 crore
paid to the exchequer
Initiatives in FY 2023-24
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
Initiatives in FY 2023-24
Sustainability assurance audits
conducted through Vedanta
Sustainability Assurance Programme
(VSAP)
Bi-weekly investor briefings and
proactive engagement with the
investor community on ESG topics
Initiatives in FY 2023-24
Membership of international
organisations including the United
Nations Global Compact (UNGC),
Confederation of Indian Industry (CII) ,
Indian Biodiversity Business Initiative
(IBBI), Federation of Indian Mineral
Industry (FIMI) and Federation of
Indian Chambers of Commerce &
Industry (FICCI)
Alignment with Sustainable
Development Goals
Compliance with the Modern Slavery
Act
Initiatives in FY 2023-24
Active hotline service and email
ID to receive whistle-blower
complaints
Vendor meets to understand
vendors and supplier’s issues
Initiatives in FY 2023-24
Partnership with UP
government to eradicate state’s
malnutrition by 2024
Partnership with Rajasthan
government to modernise
25,000 anganwadis
Taxes paid to the government
Regulatory compliances met
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Stakeholder engagement
90
91
MATERIALITY
ADDRESSING PRIORITY MATTERS
FOR A SUSTAINABLE FUTURE
Materiality matrix
Identifying the areas most material to our business helps us align our business
priorities, act ethically and responsibly, and create long-lasting impact. The three
pillars that constitute our sustainability strategy – Transforming Communities,
Transforming the Planet and Transforming the Workplace and the nine subsidiary
aims, are all closely linked with our material issues.
Vedanta conducted a comprehensive stakeholder engagement and materiality exercise in FY 2022-23, helping
us identify key material issues. In FY 2023-24, these matters were revisited and analysed internally to check their
relevance and potential risks. We effectively address these issues and several more through our ESG KPIs, guided
by well-defined targets and driven through pragmatic sustainability frameworks.
Impact on Business
Importance to Stakeholder
M1
M2
M3
M5
M4
M6
M8
M9
M10
M11
M12
M7
M13
M14
M15
M17
M16
M20
M18
M19
M21
M22
M24
M25
M23
Important issues
M21
Data Privacy & Cyber Security
M22
Pandemic Response & Preparedness
M23
Material Management & Circularity
M24
Product Stewardship
M25
Macro-economic & Geopolitical Context
Highly material issues
M1
Community Engagement & Development
M2
Water Management
M3
Health, Safety & Wellbeing
M4
Business Ethics & Corporate Governance
M5
Climate Change & Decarbonisation
M6
Diversity & Inclusion
M7
Air Emission & Quality
Material issues
M8
Biodiversity & Ecosystems
M9
Waste Management
M10
Labour Practices
M11
Long-term Growth & Profitability
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
Key KPI’s
FY 2023-24 Performance
Targets/Initiatives for FY 2024-25
SDG Alignment
Total community spend
Total outreach
Nand Ghars in operations
` 438 crore
0.3 million individuals skilled,
empowering 1.5 million members of
their household
Nand Ghars - 6,000
13.3 million women & children benefited
1.5 million families
empowered
Nand Ghars - >9,000
Community Engagement and Development
Recycling %
Freshwater reduction
Water positivity ratio
Water recycling rate at 30%
2.7% reduction in fresh water
consumption since FY 2020-21
5 businesses water positive (Cairn,
HZL, IOB, BMM, FACOR Mines)
Water positivity ratio - 0.71
Water positivity ratio
- 0.7
Water Management
Zero fatalities
TRIFR
LTIFR
CAPA compliance target
3 fatalities
TRIFR - 1.3
LTIFR - 0.62
CAPA compliance 92%
Zero fatalities
TRIFR - 0.76
Health, Safety and Well-Being
GHG emissions
RE power in operations
Biomass usage
GHG emissions 65.8 million tCO2e
RE PDAs in place -
835 MW RE RTC
66,081 tonnes of Biomass usage
RE RTC - >1,000 MW
RE RTC
Biomass usage -
~1,25,000 tonnes
Climate Change and Decarbonisation
Women employees in
organisation
Women employees in
leadership positions
20% women
8% women in leadership positions
Our diversity and
inclusion targets have
FY 2029-30 as the
target year
Diversity and Inclusion
SOx emissions
NOx emissions
SPM
All operations confirming to statutory
limits for SOx & NOx
HZL has introduced Battery Electric
Vehicles in underground mining
which will help to reduce SPM and
other emissions
VAL J is operating the largest fleet
of electric forklifts which has helped
reduce diesel consumption
Maintain all
operations below
statutory limits of air
emissions
Increase deployment
of EVs at site
FGD installation at
VAL-L new power
units
Air Emissions and Quality
Zero issues related to
corporate governance
Transparent disclosures
Zero issues related to corporate
governance
Transparent disclosures done
through Sustainability, TCFD, IR,
and BRSR reports
No major incidents
in corporate
governance
Include TNFD in the
disclosures list
Business Ethics and Corporate Governance
Highly Material Material Important
Environmental
Social
Economic
Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Materiality
92
93
OUR ESG STRATEGY
ESG:
A BUSINESS IMPERATIVE
Environment, Social and Governance
Environment, social and governance (ESG) issues have critical impact on several
dimensions of our business – from our bottom line to our brand value and reputation.
Recognising this, we, at Vedanta, have consistently prioritised effective identification,
monitoring and management of ESG issues. To keep building A Stronger Vedanta
we follow a three-pronged sustainability strategy – Transforming Communities,
Transforming the Planet and Transforming the Workplace. Multiple facets of ESG
are integrated across our processes, and embedded across our different verticals in
diverse geographies.
As a large, multinational natural resources company
we are sensitive to the many expectations that our
stakeholders have from us. Our sustainability strategy
tackles the most significant of these like resource use,
water security, lower carbon footprint, better health and
safety, inclusive workplaces and human rights, and good
corporate governance. We ensure efficient outcomes by
adopting best-in-class frameworks and technologies,
aligning with globally accepted standards and bringing in
leadership accountability.
Today, national and international governments have
well‑defined targets to combat climate change and enable
greater social equity. Through the pillars of Transforming
Communities, Transforming the Planet and Transforming
the Workplace, we throw our weight with national
and international priorities, constantly demonstrating
that no goal is too big to warrant non-engagement by
us. We do this by setting pragmatic targets over the
short-, medium- and long-term, and operating within a
strong ESG governance architecture. The Transforming
Communities pillar addresses the UN SDGs of removing
hunger, providing quality education and decent work
and economic growth and this year we have helped
15.8 million women and children gain access to education,
nutrition and healthcare through our community
initiatives. India seeks to become net-zero by 2070, while
Vedanta targets achieving this by 2050. This year, we have
avoided 6 million tonnes of GHG emissions, against our
2021 baseline because of our decarbonisation initiatives.
Through our actions, we are taking resolute steps towards
A Stronger Vedanta as we unite our efforts to build a
robust organisation with our dedication towards creating a
better world and society.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Our ESG Strategy
95
94
TRANSFORMING
FOR GOOD
Transforming Together for a Sustainable Future
At Vedanta, we aim to create value for our stakeholders, lead a purpose-driven
transformation and be future-ready by investing in a sustainable tomorrow. Our
three-pillared sustainability strategy focusses on Transforming Communities,
Transforming the Planet and Transforming the Workplace. These will aid our
efforts to uplift and empower the underprivileged, establish environmentally
friendly mining standards, expand our green product portfolio, and create a safe,
inclusive, merit-based and nurturing workplace.
We intend to achieve these goals through our nine aims, which are closely aligned to our business activities.
We aim to address our stakeholder’s material concerns including climate change and decarbonisation,
water management, biodiversity, health and safety, diversity, inclusion and equal opportunity, supply chain
sustainability and community development by setting time-focussed, pragmatic targets driven by well-defined
sustainability key performance indicators. The seamless implementation of this approach is achieved through
sound policies and frameworks aligned to globally accepted standards.
Commitments and targets
Transforming communities
Transforming the planet
Transforming the workplace
Aim 1
Keep community welfare as the guiding
principle for our business decisions
Aim 2
Empower 2.5 million individuals with
enhanced skillsets
Aim 3
Uplift 100 million women and children
via social welfare interventions
Aim 4
Net Zero Carbon by 2050 or sooner
Aim 5
Achieving net water positivity by 2030
Aim 6
Enhance our business model
by incorporating innovative
green practices
Aim 7
Prioritise the safety and health
of our workforce
Aim 8
Promote gender parity, diversity
and inclusivity
Aim 9
Align with global standards of
corporate governance
ESG Governance
Making ESG effective through
organisational actions
For a diverse and distributed
organisation like Vedanta, effective
ESG implementation demands a well-
entrenched and performance-based
execution mechanism.
Our Board includes the ESG Committee,
which drives the Group’s ESG agenda
and monitors implementation of
strategies at the Group level. The
strategic output of this Committee is
contained in the policies of the Vedanta
Sustainability Framework (VSF),
while the evaluation of Group-wide/
BU-specific ESG performance is done
through the Vedanta Sustainability
Assurance Process (VSAP).
The Group ESG team, which is a
part of the Executive Committee,
anchors the effort of drawing up the
overall ESG strategy by involving both
internal and external stakeholders. The
Executive Committee, along with ESG
ManComm, and internal management
teams comprising functional
leaders and BU‑level ESG teams
is tasked with ensuring individual
BU-level conformance with standard
practices. These committees are
also the custodian of the Group‑level
ESG roadmap. In this way, both a
top‑down and bottoms-up approach
is integrated.
At the BU level, each business has
separate ESG teams responsible for
implementing their respective ESG
strategy. Further, to drive consistent
adoption of strategies, concentrate
grassroots-level innovation efforts,
drive progress on the aims, and
integrate ESG practices across all
functions, Vedanta has developed
function-specific “Communities of
Practice” (COP). There are 13 COPs
and they exist at the Strategic Business
Unit (SBU/site), Business Unit (BU/
Sector) and Group level. The flowchart
given below shows how the different
layers interact and work together.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Our ESG Strategy
96
97
ESG Governance At Vedanta
Issues that mattered the most to the Board
Board hours spent ratio: Making time count
Board of Directors
Group-level Board oversight
Executive-level management
BU/SBU-level implementation
Group ESG Ex-Co
(Part of group Ex-Co)
ESG Management
Committee
Safety performance
Water and biodiversity
Decarbonisation roadmap
Disclosures & statutory findings
Tailings management
ESG Governance
Corporate Transformation
Office (TO)
Transformation Office-
BU & Functional
Communities of Practice
(13 COPs)
ESG Board Committee
Oversees Strategies/Policies/Procedures + Evaluates Performance via VSAP
High
Medium
High
Monthly forum with
Group Ex-Co to update on
overall ESG progress
Weekly TO meeting with Group
Executive Director 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
13 COPs, 250+ Community
members identified across
all BUs/SBUs to drive agenda
within communities
Fortnightly meeting for Programme
updates on 9 aims for Group‑level
& BU targets against actual
progress. Key decision such
as strategic direction and
cross‑functional support
Composition of the Board ESG Committee
UK Sinha
Non-Executive Independent Director
Akhilesh Joshi
Non-Executive Independent
Director
Priya Agarwal
Non-Executive Non-
Independent Director
Arun Misra
Executive Director
Chairperson
Members
The Board ESG Committee meets
twice in a year and charts the course
for turning key material issues into
executive action. This Committee
also remains vigilant about keeping
Vedanta’s ESG strategy in sync with
global and industry developments
and in ensuring that we stay ahead
and competitive.
During this financial year, the Board’s
ESG Committee focussed on the
following material issues:
The micro-level concerns covered under each of these material issues are as follows:
Safety performance
Strengthening our decarbonisation
roadmap
Compliance management
Ensuring Tailings Dam stability
wherever vulnerabilities detected
Key areas of performance
Oversight on fatality investigations
Fatality prevention and engineering
controls
Safety performance monitoring
through Integrated HSES portal
Risk governance
Key areas of performance
Evaluating progress made on Water
Stewardship Roadmap and key water
projects
Identifying key action items for
achieving Net Water Positive Index
(NWPI) across BUs
Defining SOPs for NWPI
Fine-tuning site-specific approaches
for more effective conservation and
mitigation and better monitoring and
reporting
Key areas of performance
Oversight on the Group’s Net Zero
roadmap
Review of semi-annual GHG
performance
Evaluating RE expansion, and CCUS
and hydrogen-based technologies
Inclusion of Scope 3 emissions
calculations for business
Key areas of performance
Peer benchmarking and best practice
identification across national and
international peers
Evaluating preparedness and
assurance competencies for differed
BRSR topics
Understanding disclosure
requirements, frameworks and
performance adaptability of various
reporting protocols viz. GRI, CDP,
IR, DJSI, BRSR, Tax transparency
report etc.
Key areas of performance
Developing the Group’s Tailings
policy
Reviewing safety aspects of tailings’
dams
Setting targets for 100% compliance
with GISTM by 2025
Key areas of performance
Review of progress on all 9 aims and
select KPIs; using digital platform for
such tracking
Setting direction for future goals on
ESG roadmap
Review of the Group’s ESG rankings
and ways for maintaining and
improving them
Business impact
Business impact
Business impact
Business impact
Business impact
Business impact
High
Medium
High
50%
50%
ESG Performance
ESG Governance
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Our ESG Strategy
98
99
ESG Scorecard
Vedanta Sustainability
Framework (VSF)
The Vedanta Sustainability Framework
functions as the foundational
framework for all Group-wide
sustainability actions. It contains
policies, standards, and guidance
documents and is aligned with
International Council on Mining and
Metals (ICMM), International Finance
Corporation (IFC), and UNGC. It serves
as a reference platform for operational
decisions, thereby assisting in
end‑to-end sustainability integration.
We provide education, training, and
development opportunities to our
employees and business partners so
that they gain expertise in working in
conformance with the VSF.
Vedanta Sustainability
Assurance Process (VSAP)
The VSAP serves as the internal
audit tool and assists in Group-wide
ESG compliance and integration
across Vedanta’s business units.
Beyond compliance, it also measures
sustainability performance across
various criteria, highlighting gaps
and contributing towards their timely
completion and overall efficacy.
Vedanta has been able to achieve
steady progress across its ESG goals
emerging as a strong sustainability
leader at the industry level due to
mechanisms like the VSAP and
VSF that tie in every member of
the organisation in a matrix of
responsibility and performance.
VSAP scores are a key variable in
determining Executive compensation
VSAP results are reviewed by
Board‑level ESG Committee
Sustainability criteria have a
weightage of 15% in annual
performance-linked KPIs that
determine executive compensation
Cultural Transformation
towards ESG integration
For A Stronger Vedanta, both
a strong ESG implementation
architecture – represented by our
ESG governance mechanism and a
people-led culture that embraces all
aspects of sustainable business, are
crucial. To kickstart this ESG-friendly
cultural transformation, we have
been doing several things. Trainings
help promote global understanding
of sustainability-related risks and
challenges among our employees and
leaders, and we conduct both general
and issue‑specific trainings to address
these areas effectively. ESG topics
such as decarbonisation, health &
safety, ethics and integrity, and human
rights are part of our induction training
for new employees (across leadership
levels) and the on-boarding process for
our business partners.
ESG acculturation is also promoted
through regular performance
monitoring of ESG KPIs, with
departmental teams like Environment,
Finance, Commercial etc. having
key responsibilities towards aligning
performance for respective KRAs.
As a result of such efforts, there
has been increased interest and
engagement from employees and
other stakeholders.
Transforming Communities
Transforming Planet
Aim 1
Keep community welfare as the guiding principle for our business decisions
Aim 3
Uplift 100 million women and children via social welfare interventions
Aim 4
Net-zero carbon by 2050 or sooner
Aim 5
Achieving Net Water Positivity by 2030
Aim 2
Empower 2.5 million individuals with enhanced skillsets
KPIs
FY 2024-25 goal
FY 2029-30
goal
Baseline
Progress as of
FY 2023-24
Material
Issues
UN SDGs Review Frequency
of Aim
Impact
Management
Zero social incidents
category 4 and above
-
-
One category 4 and four
category 5 incidents were
reported in FY 2023-24
Community
Development
8.3
Determined by
site-teams
Transparency
& Trust
Signatories and
participants in VPSHR
-
-
Application for VPSHR
membership submitted to
the VPI Secretariat
Set up an external
Social Performance
advisory body
-
-
Yet to be undertaken
Annual human rights
assessment across all
the businesses
-
-
Planning phase
completed. Work to be
undertaken in FY 2024-25
KPIs
FY 2024-25
goal
FY 2029-30
goal
Baseline
Progress
as of
FY 2023‑24
Material
Issues
UN
SDGs
Review Frequency
of Aim
Nand Ghar (Number of Nand
Ghars to be completed)
~9,000
29,000
6,000+
Nandghars
operational
Community
Development
2.1, 2.2,
4.1, 4.2
2.3, 2.4,
4.4, 8.3
Monthly
Education, Nutrition, Healthcare,
and Welfare (Number of women
and children to be uplifted by
Nand Ghar initiatives)
48 million
-
6.46 million
2021 baseline
13.3 million
women and
children
benefited
KPIs
FY 2024-25
goal
FY 2029-30 goal
Baseline
Progress
as of FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
Absolute GHG
emissions (%
reduction from
FY 2020-21 baseline)
-
25% reduction by
2030
60.24
million
tCO2e
9.3% increase; 65.28
million tCO2e (Vedanta’s
emissions are likely to
peak in FY 2026-27)
Climate
change and
decarbonisation
7.2,
12.2,
13.2
Monthly
GHG Emissions
Intensity (% reduction
from FY 2020-21
baseline)
20% reduction
by 2025 (across
the metals
businesses)
-
6.44
tCO2e/mt
12% reduction;
5.66 tCO2e/mt Metal in
FY 2023-24
Renewable Energy
500 MW RE RTC
or equivalent
2.5 GW of RE RTC or
equivalent
67 MW
255 MW of RE used
LMV Decarbonisation
(% LMVs)
50%
100%
-
7%
Capital Allocation for
transition to net zero
-
US$ 5 billion
-
US$ 210 million invested
in FY 2023-24
Hydrogen as fuel
-
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 2023-24
KPIs
FY 2024-25
goal
FY 2029-30 goal
Baseline
Progress
as of FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
Net Water Positivity
-
>1 ratio
0.52
(FY 2020-21
baseline)
0.71
Water
management
6.3, 6.4,
6.5, 6.b
Monthly
Freshwater consumption
(% reduction from
FY 2020-21 baseline)
15%
-
-
2.7% reduction
-
Water Related Incidents
Zero category 4 and 5 incidents
related to water
-
Zero category 4 and
5 incidents related to
water
-
Water Recycling (%)
33%
-
-
30.23%
-
KPIs
FY 2024-25
goal
FY 2029-30
goal
Baseline
Progress as of
FY 2023-24
Material
Issues
UN SDGs
Review Frequency
of Aim
Skilling (Number of
individuals to be impacted
through skill development
and training)
1.5 million
2.5 million
individuals
0.6 million
individuals
(2016
baseline)
Skill-based training
impacting 1.55 million
individuals across
0.3 million households
Community
Development
2.3, 2.4,
4.4, 8.3
Monthly
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101
Transforming Planet
Aim 6
Enhance our business model by incorporating innovative green practices
Aim 7
Prioritise the safety and health of our workforce
Aim 8
Promote gender parity, diversity and inclusivity
Aim 9
Align with global standards of corporate governance
KPIs
FY 2024-25 goal
FY 2029-30
goal
Baseline
Progress as of
FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
Fly ash (utilisation)
Sustain 100%
utilisation
107% fly ash utilised
Solid Waste
Management
12.5
Monthly
Legacy Fly Ash
Zero legacy ash
43.32 million tonnes
Waste Utilisation (High
volume, low toxicity)
100%
100%
92%
Tailings dam audit and
findings closure
All tailing facilities
were audited, and
actions were closed
with real-time
monitoring
All facilities audited
by third party.
Implementation of
conformance is 76% as
per GISTM standards
Tailings Dam
Management
Biodiversity risk
Review of site
biodiversity risk
across all our
locations
100% sites have
been re-assessed for
biodiversity risk
Biodiversity
15.1, 15.2,
15.9
Habitat restoration
Determine the
feasibility for
commitment to
No-Net-Loss or Net
Positive-Impact
(NNL/NPI) targets
Roadmap to
achieve No-
Net-Loss or
Net-Positive-
Impact in place
Feasibility Analysis for
Nature Positive future is
under progress.
KPIs
FY 2024-25 goal
FY 2029-30 goal
Baseline
Progress as
of FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
Fatalities (No.)
Zero
8 fatalities in
(FY 2020-21)
3 fatalities
Health and
Safety
8.8
Monthly
Lost Time Injury
Frequency Rate (LTIFR)
10% reduction
(year-on-year)
0.56
(FY 2020-21)
0.63
Total Recordable Injury
Frequency Rate (TRIFR)
0.98 (30% reduction
from FY 2020-21
baseline)
0.8 TRIFR per
million-man hours
1.48
(FY 2020-21)
1.30
Occupational Health
Management Systems
Health performance
standards
implemented and
part of VSAP
-
Exposure Monitoring
Employee and
community
exposure monitoring
to be completed
Employees exposure
monitoring has been
initiated
Exposure Prevention
Mental health
programme in place
for all employees
No employee
exposure to red
zone areas
54% of businesses
(6 out of 11) have started
specific programmes
and others are in the
advanced planning stage
for implementation
Employee Well-being
100% of eligible
employees
to undergo
periodic medical
examinations
Number of
planned and
underwent
periodic medical
examinations for
direct employees
and Business
Directors
92% of eligible employees
KPIs
FY 2024-25 goal
FY 2029-30 goal
Baseline
Progress
as of
FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
Gender diversity
(% women in the FTE
workforce)
Equal Opportunity
for everyone
20%
10%
20%
Diversity
and Equal
Opportunity
5.1
5.5
5.c
Monthly
Gender diversity
(% women in leadership
roles in FTE workforce)
40%
8%
Gender diversity (%
women in decision-
making bodies in FTE
workforce)
30%
20%
Gender diversity (%
women in technical
leader/shop floor roles
in FTE workforce)
10%
12%
KPIs
FY 2024-25 goal
FY 2029-30 goal
Baseline
Progress
as of
FY 2023-24
Material
Issues
UN
SDGs
Review
Frequency
of Aim
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
Some of our
businesses have
begun engaging
with our tier-1
suppliers on their
climate goals
Supply Chain
Sustainability
8.7
Monthly
Training on Code of
Conduct
Continue to cover
100% of employees
100% of
employees
are required to
undergo this
training
% Independent Directors
on Board
50% Independent Directors on Board as
per SEBI requirements
50% Independent
Directors
on Board
as per SEBI
requirements
% gender diversity on
the Board
25%
25%
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Our ESG Strategy
102
103
TRANSFORMING
COMMUNITIES
As a natural resource company, we are cognizant of the great responsibility that
we carry. Our communities and our future generations entrust their faith in us
to use the Earth’s resources sustainably, so that we may create long-lasting
value that powers economies and builds societies. This social licence to operate
that the community gives us has to be reciprocated and maintained through
actions that foster lives and livelihoods and preserve the environment. Creating
better healthcare, education and employment opportunities through investment
in social infrastructure creation and upskilling avenues are some of the ways
in which we give back. We catalyse long-term, incremental change that lasts
much beyond the tenure of our mining assets – through generational impact,
by reducing income inequalities, improving quality of life and well-being and
driving localised development.
Strategic priorities
Stakeholder impact created
Maintaining our social licence to
operate
Building strong bonds with the
local communities
Contributing to the
socio‑economic development
of the nation
Social investment: ` 438 crore
Total number of stakeholders benefited as a cumulative impact of
CSR activities: 17.4 million
Key areas of impact:
Learning new skills and upskilling
• Number of families empowered through enhanced skill‑sets: 1.55 million
Improving education, nutrition, and healthcare
• Number of women and children benefited: 15.8 million
Aim 1
Keep community welfare as the guiding principle for our business decisions
Objective of the Aim
Material topics
UN SDGs
Risks addressed
Opportunities
To enhance
our social
licence to operate
Rights of local communities
and indigenous people
and land ownership in the
area of operations
Building trust and
strong bonds with
the communities.
How this aim is being
addressed?
Extractive industries are a double-
edged sword. While the base metals
and fuel that they provide turn the
engines of national and global
economies and push the frontiers of
human development, their localised
impact needs to be managed actively
in order to minimise harm.
Vedanta actively manages the social
impact of its business activities by
keeping community interests at the
centre of all its decisions. To minimise
the adverse impact of the disruptions
that our land use causes right from the
start of a project, we implement our
three-pronged social engagement and
management strategy.
Each project we undertake involves
significant investment both in terms
of cost, time and reputational value.
To gain, maintain, and strengthen our
Social Licence to Operate, we must
constantly engage and involve with
our adjacent communities, along
with investing in their futures. Our
continuous community engagement
is driven by a robust on-site Social
Performance Management Team
and a systematic grievance redressal
protocol. This helps us better
understand our communities, resolve
M1
Creating the Social Licence to Operate
Social
engagement and
management
strategy
Building trust
through open
dialogue
Benefit sharing
Do No Harm
contentious issues early, gain their trust
and faith, and ensure no harm.
Through our Community Development
programmes, we upskill and train
community members to become
eligible for local employment and also
include them in our business in aspects
like procurement and logistics. This
helps build a reciprocal relationship
wherein the community benefits
from our presence, creating a need
for the enterprise. Maintaining two-
way communication and remaining
accessible for our communities is
critical for the relationship we share.
Each site thus has a Social Performance
Steering Committee (SPSC) which
is chaired by the site head/business
CEO. The SPSCs, via their respective
Social Performance Manager’s (SPMs),
update the “Community” Community
of Practice, the ESG ManCom, and the
Group ExCo. This multi-tiered structure
ensures that learnings, best-practices,
and improvement opportunities are
shared across management-levels and
appropriate oversight is provided on
matters of relevance.
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105
SPSCs for each site are chaired by the
respective Business Unit CEO or an
appointed site-head
Representatives from External Affairs/
Public Relations, Operations, Security,
CSR, Human Resources, HSE, Finance
and Corporate Communications
Social Performance Manager
Grievance Mechanism Cells
Community Liaison Officer
Human Rights
Indigenous people’s rights
Community Grievance
Security
Resettlement & Land Acquisition
Top-down
management
approach
Cross-
functional team
On-site staff
Implements &
Manages
Functions
of SPSC
Timely investigation
of social incidents and
resolution of grievances
Coordinated stakeholder
engagement strategy with
relevant internal teams like CSR,
External Affairs, and Security, etc.
Site-level proactive
and remedial actions
on grievances raised
by the community
Strategising to ensure
local procurement and
local employment
Approach/Planning
Resourcing
Monitoring
Site-specific Social Performance
Steering Committee (SPSC)
Governance: SPSCs are governed
by the ESG Management
Committee that reports to the ESG
Committee of the Board
On-site Social Performance
Management Team
Grievance Redressal Protocol
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
Local direct and indirect employment
near host communities
Local employment
Investment in
local communities
More than 2.3 lakhs direct
and indirect jobs created
Local procurement from
host communities
Local procurement
More than ` 31,000
crore spent on procuring
from vendors in same or
adjoining districts
Aim 2
Empower 2.5 million individuals with enhanced skillsets
How this aim is being
addressed?
Businesses such as Vedanta have
the potential to present significant
economic opportunities for host
communities, provided that they have
the requisite skillsets. Vedanta-run
training, upskilling and employment
programmes help upskill individuals
so that they can improve earning
opportunities from their existing
sources of income, and also gain
Objective of the Aim
Material topics
Risks addressed
Opportunities
To empower host
communities by
upskilling 2.5 million
individuals
Dependency of host communities
on our operations for employment
and business opportunities
Creates larger business
opportunities and aligns
with the benefit-sharing
component of our social
licence to operate
Approach/Planning
Internal implementing agency
Monitoring
The “Community” Community of
Practice (COP) implements the
CSR action plan with the respective
BU CSR teams with oversight
provided by the CSR Management
Committee (ManCom).
Through project specific metrics
Annual VSAP audits
To provide upskilling and business
incubation opportunities independent
of Vedanta’s project operations
To ensure that the skills developed
lead to livelihood generation
new skill that will help them become
employable in other sectors of the
economy. Our Corporate Social
Responsibility Management Committee
(CSR ManCom) oversees the design
of skill development programmes
that answer specific need gaps. We
also help build economic resilience
in these communities so that they
eventually become independent of
our operations and are better able to
tackle sudden, unforeseen adversities.
The programmes developed help build
skills in areas and professions that are
unrelated to our operations and also
provides incubation support so that
dependent populations can seek and
foster links with other income sources.
In these different ways, we are
consistently working towards our aim
of empowering 2.5 million individuals
with skill-development and career
opportunities by 2030.
M1
UN SDGs
The composition, key features, and functions of the SPSCs are given below:
More than 28 skilling and livelihood programmes
underway across Vedanta’s businesses
Community
Engagement
& Development
Families
impacted
814 families
impacted
Interventions include:
Vocational training centres for youth, preparing
them for trades in hospitality, construction,
home/office electrical & plumbing, welding, solar
panel installation and maintenance, tailoring, etc.
Women-led micro-enterprise development
programmes
Agricultural upskilling to increase farmer-
family incomes through training programmes
on crop diversification, sustainable agriculture,
animal husbandry, water & natural resource
management, etc.
More than 0.3 million
individuals skilled
since 2016, having
a cumulative impact
on more than
1.5 million family
members
480 families
impacted
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
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107
Mor Jal Mor Maati Project
CASE STUDY
Materiality Relevancy:
Local Communities, Economic Impacts
Why Mor Jal Mor Maati?
Agricultural communities adjacent
to BALCO’s mining operations in
Chhattisgarh face multifaceted
challenges, including unsustainable
farming practices, limited access
to water resources, low agricultural
productivity, and inadequate livelihood
opportunities. Certain traditional
agricultural methods with water-
intensive practices, contribute to
Impact on Vedanta:
Enhanced reputation and social
licence to operate
Strengthened stakeholder
relationships
Risk mitigation and resilience
Alignment with CSR and Business’
ESG aims
Impact on Stakeholders:
Water conservation
Farmer empowerment
Income stability through livelihood
diversification
Productivity and cost efficiency for
farmers
Resource management
Community development & resilience
Business growth for local rural
communities through market access
and value chain integration
environmental degradation, water
scarcity, and economic instability
among farmers. Moreover, the lack of
diversified income sources and market
access further exacerbates poverty and
vulnerability within these communities.
In the face of climate variability and
changing environmental conditions,
there is an urgent need to address
these challenges and foster sustainable
development pathways that enhance
the resilience, prosperity, and
well‑being of community stakeholders
while promoting environmental
stewardship and economic viability.
What does the project do?
Support farmers in adopting
innovative and sustainable
agricultural practices to enable
income stability.
Institutionalise capacity building
and develop Farmer Producer
Organisations to realise
economies-of-scale and enhance
negotiation powers.
How is it being implemented?
BALCO runs most of its mining
operations from the state of
Chattisgarh and has rolled out
multi‑modal initiatives under the
Mor Jal Mor Maati project involving
adjacent farming communities, to
promote water conservation and
security, crop variety, greater crop
resilience and income diversity. Started
in 2013, the project has unfolded in
three phases, gradually progressing
from enhancement of farmers’
conditions to a united effort towards
long-term gain.
Focussed on improving existing conditions, with several community water harvesting structures
being built like farm ponds, community ponds, check dams and wells. This has helped to ease
water availability for farming as Chhattisgarh has traditionally had water-intensive agricultural
practices
To help increase crop variety and crop productivity, the BALCO team undertook several
interventions: (i) Promoting the SRI method of rice cultivation that increases crop yield through
management of crop variant, soil, nutrients etc., (ii) Introduced the Trellis method of vegetable
cultivation and introduction of climate-resilient crops like kodo, ragi, wheat and peanut
1st
Phase
Broadened farmers’ options of alternative livelihoods.
Farmers were trained in multi-cropping techniques and helped in their adoption. Lac cultivation,
which assures income stability even in low to no rainfall areas and in arid land, was revived.
Revenue sources from non-timber forest products (NTFP) were also explored and adopted
Training on animal husbandry was provided to facilitate setting up of poultry farming,
goat‑rearing, fish-farming and horticulture businesses
To consolidate and continue with such livelihood improvement programmes and to bring all
farmers of the region under one umbrella, a Farmer Producer Organisation (FPO) called Korba
Krushak Unnyan Producer Company Limited was also established
The FPO has greatly helped the farmers in accessing scale benefits as they can now do bulk
procurement of agricultural inputs at competitive prices. The FPO also plays a vital role in
aggregating the farmers’ produce and bringing it to a larger market, thereby improving price
negotiability and profit margins
3rd
Phase
Technology-based capacity building with the establishment of Vedanta Agriculture Resource
Center (VARC). This centre provides training and demonstration of modern farming techniques
and is also actively involved in the research, development and practice of techniques like
hydroponics, Biofloc for fish farming and polyhouse for cultivating exotic vegetables
2nd
Phase
Our impact footprint
25-30% reduction in cost of
production for farmers
34% increase in productivity of
farmers’ yield
` 55,000 increase in annual farmer
income from lac cultivation
` 52,000 annual income increase
from animal husbandry
Other Outcomes
107 water structures constructed
1,06,000 m3 increase in water
capacity
4,747 farmer beneficiaries
800+ Farmer Producer Organisation
(FPO) members
SDG Linkages
Business Unit:
BALCO
Location: Chhattisgarh
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109
Aim 3
Uplift 100 million women and children via
social welfare interventions
How this aim is being
addressed?
Vedanta CSR programmes are
conducted over multiple thematic
areas, such as: healthcare, drinking
water and sanitation, children’s
well-being and education, women
empowerment, livelihood and skilling,
and sports & culture. Women and
children are among the primary
beneficiaries of these programmes.
In addition, Vedanta also runs the
Nand Ghar aanganwadi (child-day-
care-centre) programme that caters
to the needs of new mothers and their
young children.
Nand Ghar has been our signature
programme since its inception in
Objective of the Aim
Material topics
Risks addressed
Opportunities
Prioritise
community
welfare and progress
Reduce vulnerability of
women and children
living in economically-
weaker communities
Reduces the urban-rural gap
in economic development,
promotes social equity and
well-being and deploys
benefit-sharing
Approach/Planning
Internal implementing agency
Anil Agarwal Foundation
Delivery and outreach occurs through modern Rural Mother
and Childcare centres or anganwadis which are known
as Nand Ghars
More than 125 programmes underway across
Vedanta to address the needs of women and
children.
Thematic areas for these programmes: healthcare,
drinking water and sanitation, children’s well-being
and education, women empowerment, livelihood
and skilling, and sports & culture
Community Engagement
& Development
Women and
children impacted
As of FY 2023-24,
Vedanta’s social
interventions have
benefited more than
17.5 million women
and children since
2016.
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
2015. Offered under the umbrella of
community welfare, this programme
has been created in collaboration
with the Ministry of Women and
Child Development and local NGOs
across 14 states. The programme
is a frontrunner in actualising and
implementing government-publicised
campaigns like Swachh Bharat, Beti
Bachao Beti Padhao, and Startup India.
Nand Ghars are modern anganwadis,
which have traditionally been public
health centres at the grassroots level.
Also known as Rural Mother and
Childcare centres, the Nand Ghars have
a host of facilities and are equipped
with televisions for e-learning, solar
panels for continuous power, safe
drinking water and clean toilets. The
foundational aim of the Nand Ghars
initiative has been to provide the
mothers and children of rural India
with access to nutritious food, clean
drinking water, sanitation, reliable
power, and early learning opportunities
that prepare children to start school.
As a part of its sensitisation and
awareness creation role, the Nand
Ghars run a variety of programmes, on
subjects ranging from menstrual health
to child and family nutrition.
Additionally, they also provide skill
development and entrepreneurship
training and incubate microenterprises
so that women can achieve financial
security and independence.
FACOR Saathi: Nurturing Communities for Sustainable Development
CASE STUDY
Materiality Relevancy:
Local Communities
Why community health is
important?
The communities surrounding FACOR’s
operations in the Bhadrak district of
Odisha face multifaceted challenges
ranging from inadequate healthcare
access and educational resources to
deficient community infrastructure.
Lack of awareness about health
and sanitation contributes to the
prevalence of waterborne diseases,
while educational disparities hinder
opportunities for the youth. Additionally,
insufficient community infrastructure
limits social cohesion and development
prospects. Recognising these pressing
issues, FACOR has initiated the
Saathi programmes to address these
challenges comprehensively, aiming
to improve healthcare, education,
and community infrastructure while
fostering sustainable development and
social inclusion in the region.
Impact on Vedanta:
Improved community relations
Meets CSR objectives
Enhanced business reputation
Long-term sustainability
Impact on Stakeholders:
Health awareness and services
Educational support
Community infrastructure
development
Social inclusion and empowerment
What does the project do?
Separate programmes address multiple
goals around public health, raising
awareness about health and sanitation,
facilitating better nutrition for high-
risk groups, providing supplementary
support for education and creation of
community infrastructure.
How is it being implemented?
The initiative FACOR Saathi Aarogya
runs in the Bhadrak district of Odisha
where the company has its plant, and
at other mining locations. Under this,
Mobile Healthcare Units (MHU) visit 10-
12 Gram panchayats areas periodically
and awareness sessions on general
health, hygiene and village sanitation
are conducted. Public awareness is
also created at the grassroots level
about waterborne diseases. Further,
this programme also helps to realise
the Odisha Government’s objective
of TB Mukt Gaon (or making villages
Tuberculosis‑free) by providing
nutritional support to 30 TB patients in
the Bhadrak area.
FACOR Saathi Shiksha Amrit Paryojana
focusses on providing educational
aids that make learning more effective.
Under this initiative, FACOR has
built schools near several mines,
set up remedial coaching centres
to help students with learning and
comprehension problems and created
three mini science labs to give students
greater exposure to practical aspects
of STEM learning. Project Ladli also
falls under this initiative and helps to
propagate menstrual awareness and
hygiene amongst young village girls.
It provides a platform for menstrual
hygiene clubs and kits.
FACOR Gaaon Kalyan focusses on
creating and maintaining community
infrastructure in villages. Under this
initiative, a children’s park has been
built and another repaired, roads have
been constructed, and community
sheds and centres have been created.
Other activities underway include the
construction of a football ground and
creation of gram chaupals where gram
panchayat meetings can be held.
Through these different programmes,
FACOR is servicing the varied
needs and deficiencies of the host
communities living close to our areas of
operation and helping to enhance their
quality of life and their future prospects.
Our impact footprint
FACOR Saathi Aarogya: 240 health camps serviced under the MHU Care
programme, with 15,238+ beneficiaries
FACOR Saathi Shiksha: Education provided to 159 students through two recently
built schools; 125 students helped through two remedial coaching centres, and
three mini science labs are promoting STEM learning
Project Ladli: Operating 20 kishori (young women) clubs with > 590 beneficiaries
SDG Linkages
M1
Business Unit:
FACOR
Location: Odisha
UN SDGs
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TRANSFORMING
THE PLANET
Sustainability is at the core of our operations, as we strive for a planet-positive
future with efforts targeted at achieving net-zero carbon, water positivity, and
resource circularity. We are increasingly adopting energy-efficient processes,
enhancing renewable energy use, pioneering innovative waste-to-resource
applications and prioritising conservation practices and more efficient work
methods. Through these efforts we are not just making progress toward our climate
impact goals, we are driving transformational change. This is evident in HZL and
Vedanta Aluminium being recognised as the most sustainable producers in their
sectors, and the Vedanta Group as the third best in the S&P Global Sustainability
rankings for 2024. We are clearly setting numerous benchmarks on our journey of
building A Stronger Vedanta for a better planet.
Aim 4
Net Zero Carbon by 2050 or sooner
Objective of the Aim
Material topics
Risks addressed
Opportunities
To become a
net zero carbon
company by 2050
Physical and Transition risk
mitigation/minimisation of
adverse effects of climate change
for business units/operations
Identifying newer business
avenues with higher
green revenue generation
potential and future-
proofing vulnerable assets
Strategic priorities
Key metrics
Lowering our operational carbon footprint
Managing climate-related risks
Ensuring availability of transition metals crucial for a low
carbon world, and making related opportunities more
accessible.
Supporting India’s net zero ambitions
GHG intensity of metals business (tCO2e/mt)
Absolute GHG emissions
Renewable energy usage
As India becomes the world’s fastest
growing major economy, Vedanta
is placed in a position of great
responsibility. Much of this growth will
have to be low-carbon driven, if the
country is to meet its Net Zero by 2070
commitment. Vedanta, as the country’s
premier metals and mining company,
with a portfolio of nine transition
metals that will play a significant role
in India’s green transition, must lead
by example. We have made significant
progress on limiting our Scope 1 and 2
GHG emissions and are in discussions
on steps that can be taken to lower
the carbon footprint of our value
chain. We have taken several steps
to deliver on our net-zero carbon
vision – from launching low-carbon
aluminium products, to increasing the
share of renewables in our energy mix,
and lowering our ecological footprint
through water conservation and
circularity programmes.
How this aim is being
addressed?
Vedanta has a clearly defined roadmap
for becoming a net zero carbon
organisation by 2050 or sooner. The
roadmap has been divided in four
phases – Phase 1 (FY 2021-FY 2025),
Phase 2 (FY 2021-FY 2030), Phase 3
(FY 2026-FY 2030) and Phase 4
(beyond 2030), with focussed activities
planned for each stage. These
activities are primarily driven by four
change levers: (i) increasing the share
of renewable energy; (ii) switching
to low-carbon or zero-carbon fuels;
(iii) improving the energy efficiency
of our operations; and (iv) offsetting
residual emissions. We are currently
in Phases 1 and 2 and have achieved
significant progress along the first 3
levers, with the respective priorities of
20% reduction in the GHG emission
intensity (tCO2e/tonne) of our metals
businesses and enhancing of our
round-the-clock renewable energy
generation capacities. This year,
against the baseline of FY 2020-21,
we have achieved a 12% reduction in
our emissions intensity and utilised
more than 2.2 billion units of renewable
power across our operations. We are
further expanding our fuel switch
capabilities with biomass co-firing in
our thermal power plants. Collectively,
we anticipate a 5% reduction in
our GHG emissions as a result of
bio-mass usage.
To absorb and rationalise the
cost of transition, particularly with
respect to capex projects, we have
proactively adopted a shadow price
of US$ 15/tCO2e for projects greater
than US$ 50 million. The same is
applicable for projects whose absolute
GHG emissions are greater than
0.5 million tCO2e. Vedanta continues
to assess value-chain emissions in
business operations for 9 out of 15
categories. Such moves are expected
to future proof our financial viability,
as the pressure to transition to
green production methods become
more widespread.
We have linked executive
compensation to the Group’s
performance on ESG KPIs, and our
internal audit process VSAP remains a
key tool for linking executive decision-
making with performance on climate
related KPIs. Climate performance
is also one of the parameters of
our Long-Term Incentive Plans
linked to the Employee Stock Option
Scheme (ESOS).
M5
UN SDGs
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Approach/Planning
Internal implementing agency
Monitoring
The Energy & Carbon COP helps
to implement at the net zero
roadmap at a business and an
operational level
The ESG Board Committee oversees
the implementation of the Net Zero
roadmap
At a business-level, KPIs such as
absolute GHG emissions, GHG
intensity, renewable energy usage are
tracked and monitored. Additionally,
every site is independently audited on
an annual basis through the Vedanta
Sustainability Assurance Program
(VSAP) or all ESG KPI, including
climate-related ones
At the employee-level, the Long-
Term-Incentive-Programme,
delivered via the Employee Stock
Option Scheme uses carbon-related
KPIs to evaluate performance
Climate strategy: Vedanta has
developed Group-wide climate
strategy and decarbonisation
roadmap to realise its climate goals
Institutionalising an Internal Carbon
Price (ICP) to drive low-carbon
project selection
Determining climate-related physical
and transition risks across each
business
Policy management and oversight
To ensure that strategy implementation
remains a smooth and continuous
process, our climate goals governance
has deep Board and management
oversight. The Board ESG Committee,
Group Executive Committee and
ESG Management Committee have
overall responsibility across strategy,
coordination, operationalisation,
implementation, performance audit,
review and corrective action-taking.
This ensures that there is close
interaction between the strategic and
implementation levels.
Proper scoping and assessment of
climate-related risks and their further
integration with our Group-level
enterprise risk management and
monitoring framework is a critical
aspect of ensuring business continuity.
Given the changing climate scenario,
climate risks present unforeseen
business vulnerabilities. Physical and
transition risk assessments have
been carried out across business
units spread over diverse geographies
to help us develop plans to become
climate-resilient. We also publish
annual updates on the progress
made on our climate action strategy
in our Climate Change report and
CDP Climate Change and Water
Security responses.
Biomass Co-firing (VAL-J)
Climate Change
Mitigation
Absolute
GHG Emissions
GHG reduction
impact of
~15,000 tCO2e/annum
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
Switching to biodiesel, a low carbon fuel, at Sesa Iron Ore Business (IOB)
CASE STUDY
Materiality Relevancy:
GHG Emissions, Climate Adaptation
& Resilience, Air Emissions, Local
Communities
Impact on Vedanta:
Reduced operational costs
Greenhouse gas emissions reduction
Regulatory compliance
Business reputation
Long-term sustainability
Business Unit:
Sesa Iron Ore
Location: Goa
Impact on Stakeholders:
Air quality improvement
Community well-being
Why use Biodiesel?
Conventional practices, such as the
use of fossil fuels like High-Speed
Diesel (HSD) in coke ovens, result
in substantial emissions of carbon
dioxide (CO2), particulate matter
(PM), and other pollutants, negatively
impacting air quality, public health, and
the environment. The Argonne National
Laboratory’s Life cycle analysis study
also noted that emissions for 100%
biodiesel (B100) are typically 74% lower
than those from petroleum diesel. In
India, the cost of Biodiesel from our
key supplier is also relatively lower
than HSD, with a nearly equivalent
efficiency as that of HSD, making a
clear business case for us to switch to
Biodiesel for coal to coke conversion in
our processing operations.
What does the project do?
The conversion of coal to coke is an
essential part of the processing of iron
ore. The thermal energy required to run
this process is conventionally fired by
High-Speed Diesel (HSD) – a fossil fuel
with high carbon footprint. Switching
such GHG-intensive processes to
cleaner fuels lies at the core of our
GHG emissions reduction and Net
Zero roadmap. In October 2023, IOB
ran a biodiesel trial wherein HSD was
successfully replaced.
Our impact footprint
Using 4-5 kilolitres of Biodiesel (same amount as HSD) at ` 83-84/l which is
slightly cheaper than HSD
No soot, no smoke, no blockage in burner fuel flow leading to drastic
improvement in air emissions
Reductions in GHG emissions of projected
SDG Linkages
More than 30 projects to reduce GHG emissions undertaken during the year. Categorised by: Energy efficiency, switch to
low‑carbon fuels and renewable energy usage
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Aim 5
Net Water Positivity by 2030
How this aim is being
addressed?
Water is an important input for
mining operations and is used for
various activities along the production
chain like extraction, purification
and processing. Vedanta takes a
systematic approach to water use
at our mines including monitoring
water sources, its usage efficiency
within our premises, the subsequent
state of contamination and necessary
treatment and condition of its final
release. By taking this holistic approach
we are able to progressively limit our
use of freshwater and de-risk chances
of stakeholder conflict and promote
water security for our operations
and the dependent communities
with whom we share this resource.
Objective of the Aim
Material topics
Risks addressed
Opportunities
Net Water
Positivity by 2030
Physical, Regulatory
and Reputational risks
related to water usage for
operational purposes
Greater availability of clean
water and community
engagement through water
stewardship activities
Arresting of Firefighting water leakages
TPP 2400 MW (VAL-J)
Sustainable
Water Management
Reduction in
absolute
freshwater
withdrawal
It is estimated that 1.82 lakh m3
of freshwater withdrawal
will be avoided
Arresting of Service Water leakages
TPP 2400 MW (VAL-J)
It is estimated that around
14 lakh m3 of fresh withdrawal
will be avoided
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
In fact, water management is a high
priority material topic and directly
influences our profitability. We have
been consistently improving our water
reuse rates and are well on track to
reach our goal of water positivity
ratio > 1 by 2030.
Close to 67% of our plants are in high
water-stress areas. We safeguard our
water security by regularly conducting
site-specific and basin‑level risk
assessments to evaluate the risk
realistically and take well-planned
remedial actions. Between FY 2021‑22
and FY 2022-23, we conducted
water risk assessments across
55 locations. This included basin
level risk assessments meant for
medium and high-risk categories.
Localised solutions involving
surrounding communities and the
use of high technology for lowering
our water consumption have been the
centrepieces of our water management
efforts. These efforts have given
results and by end of FY 2023-24, we
have achieved a water positivity ratio of
0.71. For FY 2024-25, we have set the
interim target of increasing our water
recycling rate by 10% accompanied
by a 15% reduction in freshwater
consumption, from a FY 2020-21
baseline. These targets are set with the
objective of taking a phased approach
to our 2030 goal of net water positivity
and we are well on track. By the end of
FY 2023‑24, the company had reduced
its freshwater consumption by 2.7%
from the baseline year.
Approach/Planning
Internal implementing agency
Monitoring
The Water COP helps to implement the
water positivity roadmap at a business
and an operational level.
The ESG Board Committee oversees
the implementation of the Water
Positivity roadmap.
At a business-level, KPIs such as
absolute freshwater consumption,
water recycling rate, and water credit
amount are tracked and monitored.
Additionally, every site is independently
audited on an annual basis through
the Vedanta Sustainability Assurance
Program (VSAP) or all ESG KPI,
including water-related ones.
Water Positivity Strategy: Vedanta
strives to reach water positivity ratio
of more than 1 by 2030
Water-related risk assessments-
Vedanta conducts basin level and
operational risk assessments for
different sites
Policy management and oversight
M2
UN SDGs
Our Group-level water policy makes up
the essence of our water management
strategy. With guidelines that are
aligned with national, regional and
local regulations, the water policy
spans our water use cycle, and sets
down key processes like monitoring of
water usage performance, treatment
methods for polluted water and regular
tracking of significant parameters
like freshwater withdrawal and water
recharge. The Water COP is tasked with
the execution and full implementation
of this policy.
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The respective Community of
Practice groups at Vedanta take the
lead for overall execution of policies
and practices pertaining to waste
management, recycling, biodiversity
management and air emissions
monitoring. Our monitoring systems
run at various stages of operations,
and promptly capture deviations, with
corrective action plans simultaneously
kicking in. Review of waste
categorisation and treatments/disposal
methods are conducted at regular
intervals and surveillance of tailings
management systems is regularly done
to analyse future trends and identify
probable performance gaps.
Vedanta has significantly enhanced its
tracking, monitoring and compliance
management capabilities with the
introduction of the Enablon software
platform, which now makes it possible
to seamlessly track all BUs across
various aspects including environment
incident occurrences,, sustainability
and environmental health and safety,
on a real-time basis.
We keep ourselves fully abreast of
the latest compliance practices and
developments in our sector through
our active associations with leading
international bodies like the International
Council on Mining and Metals (ICMM),
International Finance Corporation
(IFC) Performance Standards and
International Union for Conservation
of Nature (IUCN). This not only leads
to efficient waste and biodiversity
management, it also future proofs us
against potential eventualities.
Approach/Planning
Internal implementing agency
Monitoring
The Biodiversity COP and the Waste
to Wealth COP help implement the
respective roadmaps associated
with this aim across business and
operational levels.
The ESG Board Committee oversees
the implementation of this aim.
At a business-level, KPIs such as
waste recycling/reutilisation, air
emission concentrations, habitat
restored, and trees planted are tracked
and monitored. Additionally, every
site is independently audited on an
annual basis through the Vedanta
Sustainability Assurance Program
(VSAP) or all ESG KPIs, including waste
and biodiversity-related ones.
Overall risk management, execution,
and strategy: Vedanta is constantly
on the lookout for newer, more
environment-friendly opportunities
to shift from linear to circular
business models.
Policy management and oversight
Aim 6
Enhance our business model by incorporating innovative green practices
How this aim is being
addressed?
The metals and mining industry has a
strong mandate to reduce its ecological
footprint. We have been moving to
greener business practices across our
operations. We are working to close
the material waste loop across our
operations by improving materials
recovery, reducing waste generation,
finding co-processing uses for high-
volume-low-toxicity wastes, and
ensuring that we keep on improving
our solid/liquid waste, air emissions,
and biodiversity-impact management
practices. With greater circularity,
our businesses also get de-risked,
with reduced chances of external
stakeholder conflict, litigations and
vulnerabilities to stricter environmental
rules, reduced dependencies on raw
material variabilities and cost volatility,
thereby enhancing our brand, goodwill
and shareholder value.
In FY 2023-24, we achieved 107%
reuse of the fly ash generated in our
operations. In addition to our efforts
around converting waste to resources,
we are also focussing on strengthening
our capabilities for mitigating loss in
natural capital and biodiversity. Last
year, we completed the biodiversity
risk re-assessment for all our sites.
Our biodiversity management policy
aligns with industry best practices like
Tailings Management Facility (TMF)
standard and Integrated Biodiversity
Assessment Tool (IBAT).
Objective of the Aim
Material topics
Risks addressed
Opportunities
Zero legacy
waste by 2035;
2,500+ hectares
of habitat
to be restored
Loss of natural habitat, intricate
dependencies on diverse
stakeholder groups, tougher
legislation and laws and future
market volatility due to linear
economic business models
Adoption of circular
economy in business
models to capture new
revenue streams and cost
savings with minimum
negative externalities
Why managing effluents is
important?
Rajasthan is the most water-scarce
state in India and out of 142 desert
blocks, 85 blocks are a part of
the state. The use of freshwater
for mining operations makes it
further water-stressed. Thus,
treating effluent water from mines
is imperative to reducing potential
contamination of drinking water
sources and agricultural lands of the
host communities.
It also allows for resource recovery,
enabling the reuse of water for
operations, allowing decreased
freshwater withdrawals. Addressing
mine effluent through treatment
demonstrates responsible use of
water resources, enhances community
relations, and fosters trust, leading to a
positive impact on local communities’
quality of life.
What does the project do?
To reduce daily freshwater intake from
Tidi Dam and reduce potential for
stakeholder conflicts.
How is it being implemented?
HZL’s Zawar mines near Udaipur in
Rajasthan generates poor quality
wastewater from its mining
complex, consisting of four
subsidiary mines. A 4,000 m3/day
capacity Zero Liquid Discharge
(ZLD) treatment facility was set up
to enable effluent treatment and
wastewater recycling. The larger
objective was to ensure minimal
freshwater withdrawals from the
Tidi dam – the nearest source of
freshwater supply. This alternate
water source ensures water security
and continuity of operations at
Zawar by preventing strain on local
water supplies. It replaces over
3,800 m3/day of freshwater with
treated mine water for reuse for
various purposes.
Mine-water management at HZL’s Zawar mines through
Zero Liquid Discharge treatment
CASE STUDY
Materiality Relevancy:
Water and Effluents & Local
Communities
Impact on Vedanta:
Reduced operational costs
Increased operational efficiency
Minimised risks related to water
scarcity and conflicts
Regulatory compliance
Business reputation
Long-term sustainability
Impact on Stakeholders:
Water conservation
Community water security
Environmental protection through
pollution prevention
Public health & safety
Business Unit:
Hindustan Zinc Limited
Location: Rajasthan
Progress
` 43 crore, 8.76 million m3 water recycled
SDG Linkages
M7
M9
M8
M13
UN SDGs
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Why has Cairn taken up this
project?
Forests and grasslands are widely
recognised as carbon sinks. While
this means that they can sequester
carbon, with today’s rapid degradation
of these habitats due to urbanisation
and development, they also release
the GHG emissions back into the
atmosphere upon deforestation. Hence,
restoration is integral.
Afforestation through mangrove
plantations can be a highly effective
carbon sequestration measure.
According to the US NOAA’s factsheet,
mangroves annually sequester carbon
at a rate ten times greater than mature
tropical forests and store three to five
times more carbon per equivalent area.
What does the project do?
Cairn is seeding plantations
and mangroves and afforesting
degraded land located close to
its operational sites in Andhra
Pradesh, Gujarat and Rajasthan.
This helps to address Vedanta’s twin
objectives of building carbon offsets
and promoting biodiversity and
environmental conservation.
How is it being implemented?
Cairn has signed separate
Memoranda of Understanding
(MoU) with the Forest Departments
of Andhra Pradesh, Gujarat and
Rajasthan for the plantation and
subsequent maintenance of nearly
2 million trees/saplings. These
plantation and afforestation initiatives
serve very different intents across
the different regions. These range
from having fruit-bearing trees like
mangoes, to providing animal fodder
in arid areas, increasing the spread of
mangroves and creating conducive
habitats for endangered flora and
fauna to thrive. In Rajasthan, the
target is to have 700 Ha of plantation
across several phases, with native
species being planted for habitat
restoration, including grasses with
high nutritional value such as Sewan
grass - Lasiurus scindicus and
Dhamana grass - Cenchrus ciliaris
that can act as cattle fodder. In Ravva,
Andhra Pradesh, Cairn wants to
continue extending its path-breaking
man-made mangrove project where a
56-acre man-made mangrove forest
already exists within its 225 acre
onshore processing terminal.
These man-made mangroves are
home to a vast variety of birds,
amphibians and marine animals,
and also serve as a nesting ground
for migratory species. A similar
project is being planned in Gujarat’s
Porbandar region, which sits in the
peninsular part of the Arabian Sea.
Third party baseline studies for soil
and vegetation profiling have been
completed and the site finalisation
stage is underway. Plans involve
creating 1000 Ha of mangrove
plantation in Gujarat.
The MoUs with state forest
departments demonstrate Vedanta’s
lifecycle approach to biodiversity
assets and plantations created by
Cairn. Nearly 3,70,000 saplings have
already been planted and their health
is monitored quarterly. Once the
plants mature, the respective State
Forest departments will take over
their habitat protection and care,
with Cairn collaborating in training
the Forest Officers with the aim
of capacity building for sustaining
the plantations.
Progress
Conservation
Rajasthan: 400 Ha plantation
completed in Barmer District,
Rajasthan, half of the targeted 700
Ha. 2,00,000 trees of mixed native
species planted, boosting habitat
restoration and biodiversity
Total 3,70,000 saplings planted
across the impact areas (within
and outside fence), with 250,000 in
Rajasthan, 90,000 in Gujarat and
30,000 in Andhra Pradesh
400 Ha of land restored with a
variety of native species
Afforestation
Gujarat: 130 Ha of mangroves
planted, out of planned 190 Ha.
85,000 mangroves contribute to
SDG Linkages
coastal ecosystem conservation and
biodiversity enhancement
Andhra Pradesh: Ongoing
plantation planned for Ravva across
360 Ha. Total 30,000 saplings
planted, signalling commitment
to afforestation and biodiversity
conservation.
490 Ha Mangroves afforested
Future targets
Discussion is going on with Forest
Department Gujarat for 1,000 Ha of
Mangrove plantation near Porbandar.
Areas already identified.
This is equivalent to 1,000th the size
of the Sundarban forest or as large as
24 Vatican Cities.
Afforestation to Develop Carbon Sink
CASE STUDY
Materiality Relevancy:
GHG Emissions, Climate Adaptation
& Resilience & Biodiversity
Impact on Vedanta:
Business reputation
Long-term sustainability of our
operations
Offsetting our carbon footprint
Business Unit:
Cairn Oil & Gas
Location: Rajasthan,
Andhra Pradesh, Gujarat
Impact on Stakeholders:
Biodiversity enhancement
Community upliftment
Education and capacity building
Habitat restoration
Our collective impact:
Seeding plantations and mangroves
and afforesting degraded land located
close to its operational sites in Andhra
Pradesh, Gujarat and Rajasthan
Long-term vision & inter-
linked impacts:
Baseline studies and monitoring
through third party allows for
progress checks and balances
related to soil health and
plantation quality and ecosystem
impacts of plantations
Training provided to Forest Officers
to maintain the afforested land after
the project is complete
Helps farmers grow grasses with
high nutritional value for cattle
Helps revive native and climate
resilient pastoral species
Restore grasslands for the host
communities
VAL-L’s increase in fly ash utilisation
Waste utilisation
Waste utilisation
In FY 2023-24, investment
to increase brick-making by
utilising an additional 0.25 million
tonnes of fly-ash.
VAL-L completed an Avian Species
conservation project involving providing
birds with a safer habitat, promoting their
rehabilitation in areas free from predators
and stopping their nesting in dangerous
places like chimneys.
Conservation of species
Habitat
Restoration
50 bird boxes and 5 bird baths
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
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TRANSFORMING
THE WORKPLACE
At Vedanta, we have always striven for a diverse, equitable, inclusive and safe
workplace. To achieve each of these attributes, separate actions have been
initiated during the year, like the identification of critical risks and the introduction
of a comprehensive Critical Risks Management mechanism; launch of the
path‑breaking Parenthood policy that vastly increases flexibility for new parents
and a brand-new Inclusion Policy for transgender employees.
As one of the largest employers in India, Vedanta takes a People-First approach to
promote employee engagement and development. This is manifested right from
our robust training and development programmes to comprehensive health and
wellness initiatives, enabling employees to leverage maximum opportunities and
realise their full potential.
Strategic priorities
Stakeholder impact created
Prevent accidents in the workplace
Enrich and grow our talent pool through
inclusive hiring policies
Lost Time Injury Frequency Rate (LTIFR) – 0.62
Gender Diversity of full-time-employees – 20%
LGBTQIA+ Hiring – 36 individuals
How this aim is being
addressed?
Building A Stronger Vedanta would be
impossible without constant systemic
upgrades to our safety infrastructure
and monitoring mechanisms. We
evaluate and enhance our safety
performance using the three levers
of (i) Crisis risk management,
(ii) Improving safety infrastructure,
and (iii) Employee and business
partner training. During this year,
Regrettably, in FY 2023-24, three
colleagues lost their lives in the FACOR
and VAL-Jharsuguda businesses,
reiterating the importance of
maintaining safety as a first-value in
all that we do. Our systems are set
up to ensure that learning from such
critical accidents are transferred across
all locations, to improve our safety
protocols. Regular assessments,
audits, compliance with evolving
national and international systems, as
well as, learnings from industry peers
are important tools in this process.
Aim 7
Prioritise the safety and health of our workforce
Objective of the Aim
Material topics
Risks addressed
Opportunities
Promote and boost
health and safety
in the workplace
Safety, production, and
reputational risks can be mitigated
through robust protocols, while
also increasing building employee
trust and loyalty
Enhance our reputation
as a safe and
healthy workplace
Vedanta has implemented the Critical
Risk Management (CRM) framework
across its operations, which identifies
13 critical risks and is based on the
9-step methodology developed by the
International Council on Mining and
Metals (ICMM). A robust governance
structure has been established, with
CEOs taking ownership of specific
critical risks and dedicated risk
committees formed for each risk area.
Our safety systems are governed by our
Safety COP and the VSAP internally audits
our entire operations against 17 safety
and 20 health and safety standards. All
our operations comply with ISO 45001
and/or OHSAS 18001 and follow the
ICMM guidelines. We also ensure that
workers’ rights continue to be honoured
at every stage of our operations, across
diverse worker groups and the changing
legal landscape. With sites located
in difficult-to-access regions, setting
standards in workers’ rights and dealing
fairly with all employees is a part of our
organisational ethos.
Most of our mining operations contain
inherent risks and as a future-forward
organisation that is creating new
benchmarks for the metals and mining
industry, having a comprehensive,
real-time, technology-enabled
safety infrastructure is the most
effective way to show that we care
for our employees.
Safeguards employee
health & well-being
Strong H&S record makes us
a responsible employer
Attracts and retains employees
Fosters positive relationship
with all stakeholders
Strengthens our reputation
Improves overall
productivity and saves costs
M3
UN SDGs
Approach/Planning
Internal implementing agency
Monitoring
Governance: Safety COP governs this
aim via the VSAP
Internal auditing of health and safety
standards by the VSAP
Health and Safety standards and
protocol in alignment with ICMM and
ISO 450001 and/or OHSAS 18001
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Approach/Planning
Internal implementing agency
Monitoring
Governance: Diversity &
Inclusion Council
Addressing grievances and
complaints
Policies for incident investigation and
penalties
Anti-discriminatory hiring policy
Adherence to Code of Conduct policy
across business units
Why is this project important?
Mining sites have many potential
hazards, especially involving manual
operation and interaction with
machine and vehicles. Critical risk
management is essential to identify,
assess, and address potential hazards
and incidents that could compromise
safety, disrupt operations, or cause
harm to personnel, equipment,
or the environment. This involves
developing comprehensive risk
management strategies, establishing
effective incident response protocols,
implementing robust monitoring
and surveillance systems, and
ensuring continuous evaluation and
improvement of safety measures
throughout the project lifecycle. Hence
our infrastructure development projects
aimed at achieving human machine
segregation helps ensure safe and
efficient operation at our operations.
What does the project do?
Upon analysing our ten-year Health
& Safety data, we identified Vehicle-
pedestrian interaction incidents as a
critical risk out of 13 risks across BUs.
We determined dedicated infrastructure
metrics for monitoring and tracking this
data and carried out an assessment
of infrastructure requirements that
can help reduce this risk. We are
building road infrastructure and using
technological interventions to reduce
such incidents and improve the safety
on-site and nearby our operations. Our
baseline data for these infra-metrics
was from FY 2021-22 when compared
to the progress in FY 2023‑24, shows
100% compliance.
How is it being implemented?
Our initiatives for vehicular
safety include:
Elimination of manual activity by
introducing telehandlers
ADAS for tracking of fatigue in
technical vehicles
Retractable seat beats in buses for all
passengers
GPS monitoring of trucks through
Portal
AI camera in high-risk areas and
reverse camera in all vehicles
Human-Vehicle segregation through
pedestrian pathway
Elimination of vehicle reversing point
through modification of path
GPS monitoring vehicles, deployment
of traffic marshal and traffic
management gadgets
Dedicated walkways, signages,
markings and regular awareness to
workforce
Vehicular safety through Infrastructure development
CASE STUDY
Materiality Relevancy:
Critical Incident Management, Local
Communities & Occupational Health,
and Safety
Impact on Vedanta:
Critical incident management
Business reputation
Improved community relations
Long-term sustainability of our
operations
Impact on Stakeholders:
Health & safety of employees,
workers & local community
Education and capacity building
Infrastructure development
Targets & Progress
Zero Incident on human-vehicle interaction since the inception of pedestrian segregation
Digitisation, ITMS for Project management, and use of technological intervention at each
site such as Radar gun, GPS monitoring and Collision-prevention systems
Infrastructure targets and their progress so far:
SDG Linkages
Our collective impact:
Vehicle-pedestrian separation
infrastructure development projects
are underway across all our Business
Units - BALCO, VALJ, VLL, CAIRN, ESL,
SC and infra-metrics are tracked in the
sites across our operations
How this aim is being
addressed?
Enhancing workplace diversity
has been a long-standing priority
for Vedanta and the company has
taken several steps to increase the
number of women in our workforce.
We hire candidates based on merit
and ensure there is no discrimination
due to caste, religion, race, gender
identity, sexual orientation, or disability
status. We are also focussed on
increasing the number of women
in decision-making bodies, senior
management, and in technical/shop-
floor functions. Additionally, we look
at diversity beyond gender and have
launched several initiatives to make
the workplace inclusive for members
from the LGBTQ+ community, people
with disabilities, and individuals from
less-represented parts of India. Our
policies mandate 50% of new hires to
be women and our groundbreaking
parenthood policy – which includes a
12-month sabbatical for new mothers
and greater flexibility in working hours
after maternity leave – is enabling
more women to make that shift.
Currently, we have 2,677 women on
our workforce, out of which 42 (or
28%) are in various decision-making
capacities. Our enabling policies, like
our Parenthood policy ensures new
mothers do not miss out on career
growth even when they are on maternity
leave, and are helping bring more
women to rise up the ranks and achieve
the growth that they deserve.
Likewise, our gender sensitisation
programme helps raise awareness
about shifting gender perspectives
beyond the binary, and our revolutionary
DEI policy is making it possible for more
transgenders to enter our workforce. To
make the workplace safer, our Code of
Conduct policies are strictly adhered to,
with mechanisms in place to address
harassment complaints and prevent
future misdemeanours.
Aim 8
Promote gender parity, diversity, and inclusivity
Objective of the Aim
Material topics
Risks addressed
Opportunities
To provide equal
opportunities and
conducive work
environment for all
Jeopardising reputational
risk and financial progress
that can be achieved
through gender parity, equal
opportunities for all
Establish Vedanta as a front-
runner in fostering an inclusive,
diverse, just, and equitable
workplace; thereby attracting the
best talent to the organisation
Key Infrastructural Projects across BUs
Vedanta
Target
Progress from
baseline
Baseline (FY 2021-22)
Mar-24
Metalled Road (Km)
287.35
331.06
387.9
43.71
Vehicle Reversing Areas (Nos.)
245
392
560
147
Pedestrian Pathway designated & with hard barrication (Km)
144.23
174.31
236.35
30.08
Automated Gates/Boom Barriers (Nos.)
26
85
150
59
HMV Parking Area (Nos.)
80
101
124
21
LMV Parking Area (Nos.)
175
217
235
42
Two-Wheeler Parking (Nos.)
34
55
65
21
Speed Radar Guns (Nos.)
6
18
145
12
GPS (Nos.)
6,124
9,834
12,105
3,710
M6
M15
M10
M16
UN SDGs
Business Unit:
BALCO, VAL-J, VAL-L, Cairn, ESL,
Sterlite Copper
Location: India
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Infrastructure for women, PWDs, LQBTQs on the C
(late night to early morning) shift
Diversity & Inclusion
Enabling the
specially-abled
Construction
underway
Hindustan Zinc trains India’s first All Women
Mine Rescue Team
Diversity & Inclusion
Increase in
number of women
in technical/
shopfloor functions
Team of 7 women
underwent 14 days
of training for mine
rescue operations
Executive workforce has a 20% gender diversity and
28% gender diversity in decision-making bodies
Diversity & Inclusion
-
-
Created and implemented Gender
Reaffirmation & Leave Policy
Community Engagement
& Development
-
-
Select achievements for the year
Achievement/Initiatives
Link with value creation
Related KPIs
Values for FY 2023-24
Giving flight to the dreams of young women from low-income groups
CASE STUDY
Materiality Relevancy:
Local Communities, Employment
Practices & Non-Discrimination and
Equal Opportunity
Impact on Vedanta:
Improved workforce diversity
Enhanced talent pool with diverse
perspectives
Strengthened community relations
Alignment with corporate social
responsibility goals
Impact on Stakeholders:
Improved education accessibility
Opportunities for young girls and
women to enter the workforce
Women empowerment
Community upliftment
Our collective impact:
Project Panchhi aims to employ 1,000
girls from the underserved, remote
communities that adjoin our metals,
mining, and oil & gas operations in
the states of Odisha, Chhattisgarh,
Why Project Panchhi?
Post-completion of higher education,
many young women from certain
socioeconomic backgrounds are
further marginalised from career
development and employment
opportunities. This is the gap
that Project Panchhi is trying to
close by employing women in
Vedanta’s workforce.
What it does?
Provide a platform to economically
disadvantaged young women, with
extraordinary potential, to pursue their
ambitions of getting educated at the
country’s premier institutions. Vedanta
sponsors their college education
and subsequently recruits them,
enabling greater workforce diversity,
and reducing underrepresentation of
women in the metals, mining & heavy
engineering industries.
How?
Project Panchhi targets first-generation
learners, who have reached the final
years of school despite considerable
hurdles, displaying great grit and
ambition. The aim is to empower
such focussed young women, who
would otherwise get left behind, and
help them realise the true power of
their potential without being hindered
by financial and social constraints.
The programme selection process is
rigorous, and tests potential recruits
on a variety of intellectual and
psychological parameters.
Vedanta facilitates their education
in prestigious institutions and fully
sponsors the cost, later recruiting
them as graduate trainees in core
operations. In this way, Project
Panchhi truly enables disadvantaged
young women to create social and
financial equity for themselves, and
to serve as role models for their peer
groups, inspiring many others to
overcome their circumstances through
determination and hard work.
Progress at VAL-L
SDG Linkages
Vedanta Aluminium at
Lanjigarh, in Kalahandi,
Odisha, has provided
apprenticeship to 40
girls in Phase 1 and is
planning to recruit a
total of 100 candidates
across two phases
58/100 women in
Phase 2 recruited
successfully
into VAL-Lanjigarh
Target: Help 1,000
young women
get employment
Business Unit:
VAL-Lanjigarh
Location: Odisha
Rajasthan, Jharkhand, Karnataka and
Goa. Our other Aluminium business
units are also at a nascent stage of
implementing Project Panchhi.
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Aim 9
Align with global standards of corporate governance
Approach/Planning
Internal implementing agency
Monitoring
Company Secretariat, Management of
Assurance Services, Group ESG
4 Statutory Committees:
Audit & Risk Management
Nomination & Remuneration
Corporate Social Responsibility
Committee
ESG Committee
Ensure all corporate policies
embibe parameters and metrics
from ESG frameworks
Ensure that there is the right
management-in-place to drive the
adoption of evolving standards of
corporate governance
Objective of the Aim
Material topics
Risks addressed
Opportunities
To ensure high
standards of
corporate governance
that integrate
environmental and
social elements
into organisational-
decision-making.
Ethical, reputational
and security risks are
addressed through
effective policies
Risk Management
& Controls
Aligns us with
international standards
of Governance
and makes us a
leader in robust
ESG policymaking
How this aim is being
addressed?
Vedanta monitors the global landscape
for changes in standards of corporate
governance, particularly in the ESG
space. We seek inputs from national
and international regulations, industry-
frameworks, investor-bodies, and
peer companies. Those practices that
help the company implement our ESG
agenda are adopted via changes in our
policies. These changes are adopted
via Board resolution.
In addition to changes in policies,
we also monitor the changing
landscape on employee performance-
linked-compensation on aspects
Rating Performance
related to ESG. A consequence of
this benchmarking has been the
introduction of climate-linked variables
in the evaluation criteria for our Long-
Term-Incentive-Programmes.
We also modify our internal audit
mechanisms - specifically VSAP
- as standards, practices, and
expectations evolve.
Additionally, transparency and the
sharing of information are fundamental
to effective communication. We publish
various ESG disclosures, including
the Annual Integrated Report, Annual
Sustainability Report, Annual TCFD
Climate Report, and the newly
established Business Responsibility
and Sustainability Report. These
reports adhere to international
reporting standards such as GRI,
TCFD, and the IR Framework. This
year marks the release of our 16th
Sustainability Report.
The calibre of our disclosures and
the underlying enhancements in our
ESG governance and performance
are reflected in upgraded ratings from
multiple agencies. This offers our
stakeholders an impartial evaluation,
confirming our progress in the right
direction. We will persist in measuring
ourselves against these frameworks
to ensure alignment with global
ESG expectations.
Agency
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
B
BB
BB
BB
44
39.6
38.9
37.9
95%
94%
98%
99%
Climate
B-
B
B
B
Water
-
-
B
A-
M4
M21
UN SDGs
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PEOPLE AND CULTURE
HARNESSING
POTENTIAL WITH
PEOPLE-CENTRICITY
Nurturing a culture of growth and empowerment is fundamental to Vedanta’s people prodigy.
The primary focus lies on enabling our people to realise their optimal potential that is further
supported by cultivating and incentivising performance and contribution towards business
goals. Central to our ethos, is the transformation of our workplace and creation of a culture
of equal opportunity, through initiatives focussed on health, safety, diversity, equity, and
inclusion. Vedanta’s transformational approach is dedicated to unlocking the untapped
potential in our workforce, driving sustained organisational success by harnessing a blend of
skills, experiences, and diverse perspectives.
Promoting diversity, equity, and inclusion
A commitment to diversity, equity and inclusion
(DEI) is deeply embedded in Vedanta’s culture
and guides our people strategy. We promote
gender parity and embrace individuals from
diverse backgrounds and cultures at every level
of our organisation, from leadership teams to
operational units. We are committed to creating
an LGBTQ+ friendly workplace ensuring every
individual feels valued and respected.
Our initiatives including role identification,
infrastructure and policy upgradations
are targeted towards creating an inclusive
environment and empowering individuals.
Transgender employees are
contributing to our success
36
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Role model campus minds
This groundbreaking initiative is aimed at
recognising, elevating, and showcasing
our brightest talents with 3-7 years of
experience. In this inaugural initiative,
a group of young leaders has been
identified and placed in impactful roles
across various functions and businesses.
Recognised for their exceptional
potential, these individuals have been
paired with CXOs as mentors to facilitate
accelerated growth and unlock their true
capabilities. These roles encompass
cross-business and cross-functional
movements, offering a comprehensive
growth platform and preparing them for
future CXO positions.
Professional leadership
and collaborative decision-
making
As a professionally managed
organisation, Vedanta operates within a
strong management framework, overseen
by an Executive Committee that makes
collective decisions at both the company
and business unit levels. Each business
unit operates independently under
the leadership of its CEO, promoting a
federated operating structure.
Cultivating excellence:
Recognition and rewards
Vedanta recognises the significance
of keeping the workforce motivated
and enthusiastic to drive organisation’s
long-term success. We have
implemented transparent schemes and
adopted a well-defined methodology
to acknowledge the efforts of our
employees and business partners.
Our best-in-class people practices
and globally benchmarked reward
programmes keep them inspired and
incentivised to deliver their best.
Our management actively
acknowledges individuals who
exceed expectations in contributing
towards business performance
and objectives. These recognitions
include the Chairman Individual
Awards, Chairman Award for Business
Partners, Leadership Excellence Award,
Sustainability Award, Chairman’s
Discretionary Award, Business
Performance-based Incentive Schemes,
and Employee Stock Options Scheme.
We ensure comprehensive coverage
through our employee stock option
scheme, which also includes campus
hires, fostering the growth of young
talent and their contribution to overall
business performance.
Identified and elevated into
different roles aligned with their
unique aspirations
117 leaders
Selected leaders are women
30%+
Identified and given elevated
impactful roles
67 young leaders
Leaders representing the
Operations and other Technical
Domains
60%
Parenthood and childcare policy
Continuing our dedication to fostering
DEI, we have improved our maternity
policy to offer better support to our
female employees during their transition
to motherhood. These improvements
are designed to empower women
and LGBTQIA+ employees. This
initiative reflects our core value of Care
and operates on the principle that
motherhood is not a career hiatus, but a
period of personal growth. Our updated
policy also promotes gender equality
in childcare support to all employees,
regardless of gender or orientation.
Gender reaffirmation policy
Vedanta acknowledges and respects the
unique needs and rights of transgender
individuals affirming our commitment
to equality and non-discrimination. In
pursuit of creating a supportive and
inclusive workplace environment, we
have introduced the Gender Reaffirmation
& Leave Policy for individuals from the
Transgender Communities. This policy
outlines provisions of financial and
wellbeing support rendered by Vedanta
during the gender reaffirmation process.
As on FY 2023-24, Vedanta has more
than 35 Transgenders working in various
roles across the organisation, majorly in
business partner workforce.
Women CXOs in making – V-Lead
Vedanta’s flagship Women Leadership
Development Programme V-LEAD is
focussed on creating a strong pipeline of
women CXOs across functions, involving
them in decision-making bodies, and
establishing role models to inspire others.
Winspire
A groundbreaking initiative recently united
women from across Vedanta to celebrate
and acknowledge their achievements and
contributions. This event underscored
Vedanta’s dedication to fostering a
diverse workforce. It featured enriching
panel discussions, insightful dialogues on
Leadership Excellence, and discussions
on organisational culture, reinforcing
our commitment to gender parity within
the organisation.
Talented women leaders
from experience bracket and
specialisation and expertise are
groomed for leadership positions
100+
Senior leaders provide Vedanta
ongoing mentorship to nurture the
personal and professional growth
of selected candidates
25
V-Lead Leaders were rewarded
with the prestigious Chairman
Award for exemplary contribution
to business growth and
performance
25%
V-Lead Leaders elevated to higher
roles through Growth Workshops,
ACT-UP, and other Talent Initiatives
60%
Women across Vedanta came
together to celebrate and
honour their achievements and
contributions
150
High-performing employees
benefit from incentive schemes,
development programmes, and
competitive compensation.
Our appraisal and compensation
programmes integrate an ESG element,
aligning employee performance with
safety, sustainability, and carbon
footprint reduction. Our world-
class people practices and globally
benchmarked reward programmes
ensure that our employees
remain motivated to consistently
deliver their best.
Exemplary talent
management practices
We are committed to making a
meaningful impact, prioritising both
business delivery and the growth of our
people. This ethos is ingrained in all
our initiatives.
V-Desire
V-Desire stands as a pioneering
initiative offering passionate individuals
a unique platform to propose ideas
for projects and roles where they
can contribute uniquely through their
experience and expertise. Individuals
have the opportunity to spearhead
and execute projects aligned
with their visions.
The journey commenced with over
700 leaders expressing interest, each
presenting unique ideas, projects,
and role aspirations. A structured
selection process ensued, assessing
the viability of proposed ideas,
performance, and potential. Shortlisted
candidates presented the “what” and
“how” of their aspirations to a senior
panel comprising internal leaders and
external industry experts. Moving
forward, each selected leader will
receive dedicated support.
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Ex-defence hires workshop
This initiative is crafted to leverage
the distinctive skills and experiences
of former defence personnel. Through
structured evaluation processes and
workshops, it aims to identify and elevate
the most promising candidates. These
individuals are subsequently offered
mentorship to further cultivate their
leadership abilities. The initiative honours
ex-defence hires’ service and enriches
leadership across sectors by recognising
and promoting the best candidates.
Executive education and
C-suite coaching
In collaboration with ISB, we
introduced a bespoke executive
education initiative, seamlessly
integrating both in-person and
virtual learning experiences,.
Tailored with specialised modules
for our executives, this programme
ensured precise development closely
aligned with organisational goals.
This hybrid learning model enabled
participants to gain invaluable
insights, foster collaboration, stimulate
innovation, and refine their strategic
leadership capabilities.
Appreciation and awards:
Underwent the hybrid
programme in the inaugural
batch with more batches
planned in the coming
financial year
35 leaders
Emerging women leaders
Gender diversity is vital for innovation
and success in any organisation and we
are achieving this through our “Emerging
Women Leaders Programme”. Launched
to nurture high-potential women in mid
and senior roles, this initiative aims to
drive superior business performance
and lead transformational change. The
programme boasts a well-balanced group,
with 49% from operations/technical
domains and 51% from enabling functions.
Notably, 30% of these women have taken
on cross-business/function/location
roles, demonstrating our commitment to
fostering well-rounded leaders.
High-potential women were
selected through a structured
process and promoted to
significantly elevated roles across
various business units
70+
onboarded across businesses
and functions with a 40% gender
diversity
1,800
freshers from
150+
premier campuses
Senior CXOs augmented their
professional growth journey
Paired with
internationally
acclaimed executive
coaches
Identified as Kincentric Best Employer for
2 years in a row, entering the coveted
Best Employer Club
Onboarding top talent for
entry-level roles
Attracting top talent from leading
universities across various fields
while ensuring a healthy gender and
geographical balance is a Group
priority. Providing suitable roles with
business relevance, mentorship, and
best-in-class rewards, including ESOPs,
coupled with accelerated career growth
through flexible cross-business and
cross-functional mobility, is essential for
offering rapid career advancement to
young professionals.
Talent development initiatives
Recruitment from remote regions:
Implementing the V-ENGAGE
project to recruit young talent from
underrepresented areas such as the
North-East, J&K, Leh, etc.
Minority representation: Achieving
15% minority state and community
representation in the overall talent pool.
Leadership pipeline from premier
institutions: Continuously sourcing
talent from top institutions like IITs
and IIMs for the Vedanta Leadership
Development Programme (VLDP)
Comprehensive development
programme: Providing participants
with business and functional rotations,
mentorship from CXOs, and fast-track
growth opportunities with rigorous
evaluations
Chairman’s Young Leader Programme:
Offering a unique opportunity for
select VLDP participants to work and
learn directly from the Chairman for a
short period
YUVA (Young Upcoming
Vedanta Achievers)
A comprehensive induction programme
for all campus hires joining Vedanta,
featuring interactions with the Leadership
Team, Business CEOs, Functional Heads,
and Industry Experts. They share their
experiences and expectations, fostering a
deeper understanding of the organisation.
The programme includes business and
functional sessions, site visits, CSR
activities, and Campus To Corporate
programmes to provide a holistic view of
the organisation and its operations.
V-Campus
A 12-month detailed programme,
complementing YUVA, V-Campus offers
every new campus hire a single digitally-
driven platform. This assists in steering
their performance with appropriate
anchoring, ensuring continuous
engagement, learning opportunities, and
recognition based on measurable KPIs.
Vedanta has once again been honoured
as a Best Employer India 2023 by
Kincentric, securing a place in their elite
Best Employer Club, alongside the top 16
companies out of over 60 participants
Vedanta received special recognition
as India’s Best Employers Among
Nation-Builders 2023. TSPL was ranked
among the top 25 companies in the
Manufacturing category
13 leaders from Vedanta have been
named in the Top 100 Great Managers
in the Great Manager Awards-2023
by the Economic Times & People
Business. Cairn, VLL, BALCO, Sesa Goa,
Sterlite Copper, and Runaya have been
recognised as “Companies with Great
Managers,” among the Top 50 Companies
from over 175 participating organisations
Vedanta achieved the Gold standard
in the Healthy Workplace Award by
Arogya World in its inaugural attempt,
showcasing industry-leading practices for
Employee Health & Well-Being. The award
is based on a rigorous audit measuring a
range of parameters
Fortune India has acknowledged
Vedanta as a Top 10 Future-Ready
Workplace among 200+ leading
organisations, after analysing key metrics
such as Culture, Leadership, Performance,
Innovation, Resilience, and Sustainability
Vedanta Group has been listed among
the Top 10 Happiest Workplaces in
the Happiness & Wellbeing Awards by
Economic Times HR World, standing
out among over 100 nominations.
BALCO, ESL, TSPL, HZL, Cairn, and
Sesa Goa secured positions in the top
30 organisations
Vedanta recognised as one of the Best
Companies to work for in 2023 by
Great Place to Work
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CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
People and Culture
134
135
Unleashing potential through V-Desire initiative
CASE STUDY #1
Renowned as a talent powerhouse in
the industry, we advocate for “Growth
from within” as our guiding philosophy,
propelling our rapid expansion. Central
to our ethos is a culture that empowers
individuals to realise their full potential,
epitomised by the V-Desire initiative. This
groundbreaking programme provides
a platform for passionate individuals
to innovate, drive business value, and
assume elevated roles and projects
aligned with their aspirations.
Engaging over 700 individuals through an
expression of interest, V-Desire integrated
a unique ideation survey crafted by
our global advisory partner. Following
a rigorous 3P assessment framework
(Performance, Pedigree, Potential), 350
candidates were shortlisted, with 200+
advancing to showcase their ideas to
an exclusive panel. Senior Leaders led
the discussions to assess candidates’
enthusiasm and ambition across
domains like Innovation Projects, Digital &
AI, Sustainability & ESG, among others.
Spanning eight weeks with over 70 hours
of panel evaluations, the process involved
dynamic discussions with Business CEOs
and Functional CXOs. Ultimately, over
100 leaders were identified to spearhead
aspirational roles and projects across
Vedanta, exemplifying our commitment to
nurturing impactful career journeys.
Driving excellence in people practices
CASE STUDY #2
Our commitment to sustainable business
practices, employee empowerment, and
community upliftment has garnered us
numerous prestigious awards. This year,
we proudly received the “Best Employer”
accolade for the second consecutive
year from Kincentric, a Spencer Stuart
company renowned for unlocking the
potential of people and teams to drive
business success. This recognition
underscores our holistic approach to
People Practices, Vibrant Culture, and
Visionary Leadership, setting us apart as
a global leader in stakeholder opinion.
Of the 100+ leaders identified through V-Desire
Women Hi-Potential Leaders
30%
Exhibit 1
V-Desire Panel
Interaction Rounds
Exhibit 2
V-Desire
Chairman Townhall
Leaders in Enabling Functions
42%
Leaders in Operations/Technical
Domain
Cross Business, Location &
Function Changes
58%
20%
Exhibit 3
Winners - Kincentric Best Employer 2023
Earning the title of “Best Employer” is a
journey guided by a robust evaluation
framework assessing an organisation’s
unique attributes and differentiators.
This framework evaluates Intent, Design,
and Experience, gauging the alignment
of business leaders’ future vision, the
effectiveness of people processes, and
the employee experience.
Joining the elite “Best Employer Club”
offers us a platform to engage, share best
practices, and collaborate with industry
experts, paving the way for continual
advancements. This award celebrates
our harmonised approach of Intent,
Design, and Experience, reaffirming
our commitment to fostering a culture
of excellence that drives competitive
advantage through people while
prioritising People, Profit, and Planet.
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137
FINANCIAL STATEMENT
STATUTORY REPORTS
CORPORATE OVERVIEW
People and Culture
CORPORATE GOVERNANCE
TRANSFORMING TO
BECOME MORE RESPONSIBLE
While ensuring sustainability in order to make the nation self-sufficient, Vedanta Limited
progresses by transforming continually to ensure effective management of natural resources
with a well-developed governance framework. With defined roles and responsibilities of every
constituent of the governance system, our philosophy derives 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 of Trust,
Entrepreneurship, Innovation, Excellence,
Integrity, Respect and Care. It is structured
around our strong industry-leading vision,
strategic mission, and the primary objective of
delivering sustainable growth.
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STATUTORY REPORTS
FINANCIAL STATEMENT
Corporate Governance
139
138
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
Composition of the Board of Directors
As on 31 March 2024, the Board comprises eight members, as listed below:
S. No.
Name
Designation
Gender
Age
(as on 31 March 2024)
1
Mr. Anil Agarwal
Non-Executive Chairman
Male
71
2
Mr. Navin Agarwal
Executive Vice Chairman
Male
63
3
Ms. Padmini Sekhsaria
Non-Executive Independent Director
Female
48
4
Mr. Dindayal Jalan
Non-Executive Independent Director
Male
67
5
Mr. Upendra Kumar Sinha
Non-Executive Independent Director
Male
72
6
Mr. Akhilesh Joshi
Non-Executive Independent Director
Male
70
7
Mr. Arun Misra
Executive Director
Male
58
8
Ms. Priya Agarwal
Non-Executive Director
Female
34
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.
duty as trustees of various capitals (financial, manufactured,
intellectual, human, social and relationship, and natural). We
feel this is important for 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.
In conducting its business, the Board is supported by:
Established Committees
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
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.
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
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:
Business alignment with free market practices, anti-
competitive policies and fair competition
Compliance with all statutory requirements as listed by
SEBI, MCA and other regulators
Adoption of an informed, diverse, relevant and experienced
Board, enabling integrity as a standard from the top, with
collective and specific responsibility
Guaranteeing the rights and equitable treatment
of shareholders and key ownership functions
with:
Assurance of rights and equitable treatment of all
shareholders, including minority and foreign shareholders
Implementation of specific channels for shareholders to
voice their concerns
Conduct Annual General Meetings as per existing norms
Regular publications for apprising shareholders regarding
performance, strategy, governance etc.
ESG Ratings
By focussing on sustainability and ESG as business imperatives, we consistently aim to improve our ESG ratings.
Facilitating the role of stakeholders in corporate
governance with:
Consistent focus on stakeholder relations, as well as
continual engagement with investors, clients, customers,
employees, bankers, and regulators
Adherence to specific policies for vendors, suppliers and
business partners
Diligence towards health, safety, well-being and growth-
focussed employee policies
Institutionalisation of strong whistle-blower policy and vigil
mechanism
Emphasis on social responsibility and welfare initiatives in
consultation with communities
Safeguarding disclosure and transparency with:
Focus on compliance-led periodic disclosures and
transparent reporting suite
Voluntary reporting on globally accepted principles and
frameworks, such as Integrated Reporting, GRI, Climate
Action Report, BRSR etc.
Engagement of external independent auditors for financial
and non-financial information
Gender
Male
Female
Number of Directors
06
02
Age Group
Less than
30 years
Between
30-50 years
Above
50 years
Number of Directors
00
02
06
DJSI
Vedanta ranked 3rd among
Global Diversified metals
and mining peers
Percentile Ranking
Risk Score (lower the better)
ESG Rating
ESG Rating
CDP
CDP climate: B- rating
CDP water: A- rating in
2023
and oversight at all levels, in addition to ESG-themed
communities at each BU and SBU to own projects and drive
their timely implementation.
Sustainalytics
Vedanta improved its score
by 9 points in last 4 years
Vedanta entered High-Risk
category from Severe Risk
MSCI
Vedanta maintained BB
rating
Rating is above industry
average
86%
47%
CCB
C
89%
44%
B
B-
98%
39.6%
BB
B B
B
A-
100%
37.9%
BB
2020
2020
2020
2020
2021
2021
2021
2021
2022
2022
2022
2022
2023
2023
2023
2023
Climate Rating
Water Rating
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Corporate Governance
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141
RECOGNISED FOR EXCELLENCE
Key Awards/Recognitions
AWARDS
Vedanta Limited
Ranked 3rd in S&P Global
Corporate Sustainability
Assessment 2023 in Global
diversified metals and
mining peers group
Vedanta Limited
Ranked 1st in S&P Global
Corporate Sustainability
Assessment 2023 in Global
Aluminium peers group
Vedanta Limited
Kincentric Best
Employer 2023 Award
Hindustan Zinc
Ranked 1st in S&P Global
Corporate Sustainability
Assessment 2023 in Global
diversified metals and
mining peers group
Category/Recognition
S&P Global CSA (DJSI)
Category/Recognition
Leading People Practices
Vedanta Limited
Bronze Award at South
Asian Federation of
Accountants Awards
Vedanta Limited
Best Corporate Governance,
India 2024 Award
by World Finance
Vedanta Limited
Won National Energy
Award at Confederation of
Indian Industry (CII)
Vedanta Limited
Great Place to Work Award
Category/Recognition
Excellence in
Annual Reporting
Category/Recognition
Leading Corporate
Governance Practices
Category/Recognition
Energy Efficiency
Category/Recognition
Great Place to Work
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Awards
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143
Operational and Business Excellence
VAL - L
5S - Catalyst to Achieve Growth by
Quality Circle Forum of India
VAL - J
Platinum Award at the 31st
Chapter Convention on Quality
Concepts (CCQC)
VAL - J
Exemplary Supply Chain Award
at 5th Celerity Supply Chain Tribe
Conference and Awards
Category/Recognition
Supply Chain and Logistics
Category/Recognition
Excellence in Growth and Operations
Category/Recognition
31st Chapter Convention on
Quality Concepts
VAL - J
Winner of CII National Energy Award
VAL - J
National Energy Management Award
at Society of Energy Engineers and
Managers Awards
VGCB
Terminal Operator of the
Year - Maritime Excellence
Achievers Awards 2023
Category/Recognition
INMEX SMM India
Category/Recognition
Energy Efficiency
Category/Recognition
Energy Efficiency
VAL - J
Future Ready Factory of the year for
Mega Large Businesses
BALCO
Platinum Award at Apex
India Safety Award
Cairn
Oil/Petroleum Products Pipeline
Transportation - Company of
the Year by Federation of Indian
Petroleum Industry
Category/Recognition
Business Excellence
Category/Recognition
Frost & Sullivan Awards
Category/Recognition
Excellence in Manufacturing
People
Category/Recognition
Leading People Practices
Category/Recognition
Leading People Practices
Category/Recognition
Leading People Practices
Cairn
Business World People HR
Excellence Awards 2023
Cairn
‘Diversity, Equity and
Inclusion, Awards 2023
HZL
Hindustan Zinc won ‘Leadership in HR
Excellence’ award at 14th CII National
HR Excellence Awards 2023-24
Vedanta Limited
Great Place to Work certified
BALCO
People First HR Excellence Award
VAL-J
Happiest Workplace Award
Category/Recognition
Excellence in workplace responsibility
Category/Recognition
Awarded by Great Place to Work
Institute India
Category/Recognition
Leading practices in Human Resource
Environment
Category/Recognition
Energy Efficiency
Category/Recognition
Excellence in HSE
VAL - L
Best ESG Initiative - Environment, Health & Safety
Operational Excellence by Council of Enviro Excellence
BALCO
ICC Environmental Excellence Award 2023
(Gold Certificate)
VAL - J
Grow Care Environment
Excellence Award
VAL - J
Future of Logistics & Supply Chain
Summit & Awards 2023
BALCO
Integrated Manufacturing Excellence
Initiative Award 2023
Category/Recognition
Business Excellence
Category/Recognition
by Greentech Foundation
Category/Recognition
Best Sustainability in Supply Chain
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Awards
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145
MANAGEMENT
DISCUSSION AND
ANALYSIS
MARKET REVIEW
Global Economy:
The global economy remained resilient in 2023 despite
the escalation of geo-political conflicts, higher-for-longer
interest rates and demand slowdown. High interest rates
have also speculated a period of recession in the major
economies like the US and the EU, which have been outdone
in CY2023. After projecting global economic growth of 3.1%
in CY2023 in its Jan 2024 outlook, the IMF has upgraded its
projection to 3.2% in its April 2024 outlook[1].
Global inflation is receding at a faster pace than anticipated.
It declined from 8.7% in CY2022 to 6.8% in CY2023 and is
expected to further decline to 5.9% in CY2024, according to
IMF [1]. Though headline inflation witnessed a sustained
decline from the unprecedented peaks, core inflation has
maintained its sticky nature and required strict vigilance
of the central banks to bring it down to the desired levels.
Inflation levels in most of the countries remained above the
target levels which compelled the central banks to maintain
their stance on monetary tightening for the year. The global
economy also dealt with the challenge of high borrowing
costs due to the persistent high interest rates. However,
the prospect of further relaxation of financial conditions
has prompted an upswing in equity markets, although
uncertainty persists regarding the timing of interest
rate reductions. Financial market sentiments have been
fluctuating, with evolving perspectives on an early pivot by
central banks in advanced economies [10]. Central banks
are exercising caution and have stalled the interest rates
to fully transmit the impact of tight monetary policy. This
has led to subdued commodity demand and a softening in
prices in CY2023.
The global manufacturing industry focussed on the high
tech and energy transition technology resulting from the
policy push from the respective governments. As a result,
the metal demand has been majorly driven by the energy
transition activities and is expected to provide a cushion
to the economic slowdown. The global Manufacturing PMI
has been under contraction in CY2023 but has indicated
stabilisation towards the start of CY2024. Additionally,
commodity prices have remained relatively stable in
CY2023 despite the ongoing economic slowdown in China
and Europe and geo-political challenges in Europe and the
Middle East. Global trade growth was nearly stagnant in
CY2023 due to elevated inflation and a sluggish pace in
global industrial production. Geoeconomic fragmentation
is expected to exert continued pressure on global trade and
cause additional price volatility. The IMF expects global
trade to grow at 3.0%, Y-O-Y, in CY2024 before improving
marginally to 3.3%, Y-O-Y, in CY2025. [1]
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FINANCIAL STATEMENT
Management Discussion
and Analysis
STATUTORY REPORTS
Geo-political challenges and climate change
have impacted the supply chain
Apart from the ongoing Russia-Ukraine war, the intensifying
conflict between Israel and Gaza has become an additional
source of concern for the global economy. Furthermore, the
trade disruption caused by the crisis in the Red Sea route,
responsible for 12-15% of the global trade flow and 20%
of the container trade, is leading to delays and heightened
logistic costs [2]. The trade flow between the European
and Asian counterparts has been impacted majorly by
the significant hike in logistics costs. This has kept the
commodity prices volatile in Q4 CY2023 and in Q1 CY2024.
The climate change has also impacted the supply chain.
The Panama Canal route is witnessing a low water level.
According to the United Nations, low water levels have
caused a decrease of 36% in ship transits compared to a
year ago and are almost 62% down from two years ago [2].
On top of that, the El Niño effect also poses a threat to
agricultural commodities which can shoot up the inflation
causing the interest rates to remain high for a longer period.
The Chinese economy continues with the ailing
real estate sector
Despite the failed recovery of the real estate sector,
Chinese economy has grown by 5.2% in CY2023 which
was in line with the government’s target of 5%. As the
rest of the world is dealing with high inflation, the Chinese
economy has been experiencing a period of deflation. After
the unfolding of the property sector status, the dwindling
consumer sentiments persisted in CY2023. The People’s
Bank of China has reduced the interest rates lower with
additional support to the vulnerable sectors.
China’s property sector has continued with its downward
trend in CY2023. While the construction activity has
remained subdued, the real estate prices have remained
elevated and did not decline much [3]. The Chinese
government has extended the support like expanding the
financial support to the property developers, relaxation
of the loan defaults by the home buyers, relaxation of the
rules to boost the home purchase, and so on. However, the
stimulus packages announced by the government are yet
to reflect on the indicators.
On top of the domestic consumption, the slowdown in the
export market has also impacted the Chinese economy’s
growth. Chinese domestic demand has also witnessed a shift
from conventional infrastructure-related demand to energy
transition demand. The growth of renewable energy capacity,
EV production and sales and other structural changes have
initiated a structural change in the economy.
The IMF has projected the Chinese economy is expected to
witness a slowdown and grow at 4.6% in CY2024 and 4.1%
in CY2025 [1]. China’s central banks announced cutting the
reserve requirement ratio (RRR) for all banks by 50 basis
points (bps) as part of a slew of measures to support the
fragile economy.
The US economy remains resilient
The US economy has performed better than expected in
CY2023 amid a high level of uncertainty and high interest
rates maintained by the US Federal Reserve. A tight labour
market and healthy consumer spending have supported
the economic growth. Retail inflation also came down
considerably from its CY2022 peak but remained under
observation as it witnessed a slight upward trend towards the
end of CY2023. The stickiness of the core inflation has kept
the interest rate high and impacted the business investment
and the real estate sector’s performance in CY2023.
Source: IMF Country Focus [3], CEIC [4]
The US economy was previously expected to face challenges
due to the impact of the prolonged high interest rate, but the
economy has been responding with resilience. The Fed has
kept the interest rate unchanged after the increase in July
2023. The market had anticipated aggressive rate cuts post
December 2023 announcements, but that expectation was
diffused after the Fed Chair’s comments to keep the decision
longer for the need of the economy around the ongoing global
uncetainty. After growing at the rate of 2.5% in CY2023, IMF
projects that the US economy will further grow by 2.7% in
CY2024 before slowing down to 1.9% in CY2025. [1]
The European economy stagnates but falling
inflation keeping hopes up
The European Union managed to avoid the recession in
CY2023, but the block is struggling to attract growth due to
the contraction of Germany, Austria, Estonia, Finland, Hungary,
Ireland, Netherlands, and Sweden. The hike in energy prices
in CY2022 led to the closure of the manufacturing units
across Europe which continue to suffer due to the slowdown
in demand. Among the major economies, Germany has
witnessed a setback as the GDP growth on a Y-O-Y basis
contracted in three consecutive quarters in CY2023 from Q2 to
Q4. Moreover, the European Central Bank has kept the interest
rates high and is expected to maintain the monetary tightening
to control the inflation level. Core inflation has been coming
down, but the geopolitical and supply chain uncertainty is
expected to keep consumer sentiments restricted. Despite
challenges, the European economy has resisted the recession
supported by falling inflation levels with a tight labour market
supporting private consumption.
The expectations in CY2024 from the European economy
are better than that of CY2023 as the worst impact is likely
to be over. After witnessing a marginal growth of 0.4% in
CY2023, the IMF projects that the Euro Area will grow at 0.8%
in CY2024 and 1.5% in CY2025. Germany which is expected
to have contracted by 0.3% in CY2023 will grow by 0.2% in
CY2024 and 1.3% in CY2025 [1].
Global Economy Outlook
The global economy is expected to sustain its resilience in
2024. However, the economic outlook for CY2024 will be
impacted by the heightened geopolitical unrest which could
raise the risks of supply disruptions, elevate energy and
commodity prices, and pose downside risks to the global
economy. Moreover, the performance of the Chinese economy
has also been a major concern. The Chinese government’s
efforts to support the property sector and financial market
and encourage consumer spending might need more time to
indicate any significant improvement.
The slowdown in inflation has raised the anticipation of
interest rate cuts but most of the central banks are expected
to hold it till H2 2024. After successful economic performance,
it is expected that the impact of high inflation rates will not be
reflected in CY2023 and CY2024 might witness its completion.
Global headline inflation is projected to decrease to 5.9% in
CY2024 and further to 4.5% in CY2025 [1].
Mar-24
World's Retail Inflation in 2023 (%Y-o-Y)
Central Bank Interest Rate Hikes (In basis Points)
S&P Global Manufacturing PMI (%)
Chinese Real Estate Sector (%)
China's Foreign Trade Growth (% Y-o-Y)
-2
-30
-20
-10
0
10
20
30
0
0
100
200
300
325
300
225
200
200
60
400
2
4
6
8
10
12
40
40
20
40
60
80
100
120
140
90
140
45
50
55
60
65
Jan-23
EU
UK
USA
South Africa
Australia
India
Mar-23
May-23
Jul-23
Sep-23
Nov-23
Jan-24
China
World
Real estate sales
Real estate starts
Median 70-city new house price
EU
EU
India
India
UK
China
USA
USA
Jan-23
Jan-22
Jan-23
2018
0
2019
2020
2021
2022
2023
Feb-23
Mar-23
Mar-22
Mar-23
Mar-23
Mar-22
Apr-23
May-23
May-22
May-23
Jun-23
Jun-23
Jun-22
Jul-23
Jul-22
Jul-23
Aug-23
Sep-23
Sep-22
Sep-23
Sep-23
Sep-22
Oct-23
Nov-23
Nov-23
Nov-22
Dec-23
Dec-23
Dec-22
Dec-21
Jan-24
Jan-24
Feb-24
Mar-24
Mar-24
Mar-24
World Bank Commodity Index (Base: Dec-2021) (%)
Energy
Export
Agriculture
Import
Fertilisers
Metals & Minerals
Q4/CY22
Q1/CY23
Q2/CY23
Q3/CY23
Q4/CY23
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149
Management Discussion
and Analysis
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Integrated Report and Annual Accounts 2023-24
The IMF has upgraded the global GDP forecast for CY2024 to 3.2% from the earlier projection backed by the better-than-
expected performance of the US and other large emerging markets and developing economies in CY2023 [1].
Source: IMF Country Focus [3], CEIC [4]
Indian Economy
Indian economy came out as a top performer in FY 2023‑24
despite the domestic challenges of high inflation and
subsequent monetary tightening, and setbacks in the export
market due to the global slowdown. As per the second
advance estimates released by the National Statistical Office
(NSO), real GDP is expected to grow by 7.6% in FY 2023‑24
as against 7.0% in FY 2022-23 [11], driven by robust
domestic demand, moderate inflation, a stable interest rate
environment, and strong investment activities. Furthermore,
India also concluded a successful presidency of G20,
India’s manufacturing sector has maintained its expansionary
state in CY2023 with consistent positive levels of new
orders, according to the PMI survey. At the start of CY2024,
international sales have also witnessed a pickup creating a
positive sentiment towards the export market. The positive
response of domestic and a hint of global demand expansion
have fuelled the expectations from CY2024. The Index
of Industrial Production (IIP) shows that the output of
India's industry grew by 6.1% in the first three quarters of
FY 2023‑24 compared to 5.5% in the corresponding period
of last year. The performance in January 2024 and February
2024 has also been moderate with Y-O-Y growth of 4.1%
and 5.7%, respectively [11]. From April 2023 to February
2024, mining and quarrying activity has contributed to 8.2%,
Y-O-Y, followed by electricity which grew by 7.5%, Y-O-Y, and
manufacturing which grew by 5.01%, Y-O-Y.
India’s foreign trade has witnessed a contraction in
FY 2023-24. India’s overall exports including merchandise
and services in FY 2023-24 are estimated to be US$ 776.68
billion, which is US$ 0.28 billion higher than 2022-23. Overall
imports in FY 2023-24 are estimated to be US$ 854.8 billion,
witnessing a drop of -4.8% over FY 2022-23 [12]. India’s POL
product import has witnessed a drop of -14.2% in FY 2023-24
as compared to FY 2022-23 [5]. India’s crude oil consumption
has been robust in CY2023, OPEC has indicated that India’s
crude oil import in CY2023 will reach to record high of
4.7 mbpd from 4.6 mbpd in CY2022 [6]. The drop in crude
oil prices in CY2023 as compared to the CY2022 level is
indicating a contraction in the import value. India’s non‑POL
export has also witnessed a drop of -1.7% in FY 2023-24
from FY 2022-23 levels [5].
On the brighter side, the gross GST collection witnessed
a healthy 11.8% Y-O-Y growth, reaching ` 120.18 lakh
crore during the FY 2023-24 period as against ` 18.06 lakh
crore collected in the same period of the previous year
(FY 2022‑23) [13].
Despite repetitive food price shocks and volatility in fuel
prices, CPI inflation is on a downward trajectory and eased to
4.85% in March 2024 from 5.09% in February 2024 [11]. Core
inflation which has remained sticky in CY2022 has come
down to the RBI’s tolerance limit. The RBI keeps the policy
repo rate unchanged at 6.50% and retains the CPI inflation
forecast at 5.4% in FY 2023-24 and expects to drop down to
4.5% in FY 2024-25[10].
Fiscal and monetary policy spurring economic
growth
A conducive domestic policy environment will continue
to improve the business environment, promote industrial
activity, accelerate manufacturing, create economies of
scale, and make India an integral part of the global value
chain. With the rollout of schemes like PLI and FAME and
the government’s push for infrastructure development,
India is now one of the attractive destinations for foreign
investments. Bilateral agreement to facilitate trade
opportunities has expanded the markets for Indian MSMEs
and businesses. The India-Middle East-Europe Economic
showcasing India’s capability to cater to global needs and
providing a platform to address global concerns.
Globally, high inflation and interest rates, coupled with
supply surplus, have exerted significant pressure on
demand. However, India’s robust government spending
on infrastructure development and positive consumer
sentiments have not only provided a cushion but also
boosted economic growth. Despite the persistent monetary
tightening by the RBI, the domestic demand has remained
resilient and supportive.
Corridor announced at the G20 Summit has not only
brought focus to India’s importance in the global economy
but has also provided an opportunity to diversify the
logistic constraints.
In the interim budget of FY 2024-25, the Government of India
continued with its robust spending on capital expenditure,
which grew by 11.1% to ` 11.1 lakh crore for FY 2024-25.
The primary focus of the government has been to further
strengthen the infrastructure of the country. Implementation
of the economic railway corridor programmes under the PM
Gati Shakti scheme will further strengthen the connectivity
and logistic capabilities. Efforts towards green energy by
supporting the installation of renewable energy capacity and
reducing high carbon intensity fuel have also been made.
The RBI has been vigilantly monitoring India’s economic
conditions under the influence of global upturns and has
successfully provided stability in the monetary environment
of the country. Amid the volatility of the US Dollar Index, the
RBI has successfully steered the monetary policy to maintain
stability in the economy and reduced the risk associated with
external factors.
Indian Economy Outlook
India’s economic outlook remains positive and it is poised to
become the third largest economy in the world, with a GDP
of US$ 5 trillion by FY 2027-28. The support of infrastructure
spending, efforts to build a manufacturing ecosystem, and
strong consumer and business sentiments have become
the fundamental drivers of the growth. The global concerns
related to the supply chain disruption, high logistics cost,
escalation of the geo-political crisis and volatility in global
financial markets pose a downside risk, however, the
Indian economy is well-positioned to navigate forthcoming
uncertainties due to its robust domestic demand. The RBI
is expecting inflation to moderate to an average of 4.5% in
FY 2024-25, under the upper tolerance limit of 6% but still
above the comfort level of 4%. The IMF expects India’s GDP
to grow at 7.8% in FY 2023-24 in April 2024 World Economic
Outlook, an upward revision from the 6.7% projected in
the January 2024 economic outlook [1]. The GDP growth
outlook for FY 2024-25 and FY 2025-26 is expected to be
6.8% and 6.5%, respectively [1].
India’s growth outlook by domestic and global
agencies
Agency/Institution
Month of Release
FY 2024
FY 2025
NSO, MOSPI (GoI)
February 2024
7.6%
7.0%
RBI
April 2024
7.3%
7.0%
IMF
April 2024
7.8%
6.8%
World Bank
April 2024
7.5%
6.6%
Asia Development
Bank (ADB)
April 2024
7.6%
7.0%
S&P Global Ratings
March 2024
7.6%
6.8%
Fitch Ratings
March 2024
7.8%
7.0%
Nomura
March 2024
6.7%
6.2%
OECD
February 2024
6.3%
6.2%
Source: CMIE
Source: S&P Global, RBI, CMIE
References
1. IMF, WEO, April 2024 | 2. https://news.un.org/en/story/2024/01/1145902
3. https://www.imf.org/en/News/Articles/2024/02/02/cf-chinas-real-estate-sector-managing-the-medium-termslowdown#:~:text=With%20
the%20property%20downturn%20in,in%20the%20last%20three%20decades.
4. CEIC | 5. CMIE | 6. OPEC | 7. S&P Global | 8. World Bank, The Pink Sheet | 9. CMIE | 10. RBI, Monetary Policy Committee
11. MOSPI | 12. Ministry of Commerce & Industry | 13. Ministry of Finance
S&P Global PMI
Global GDP Growth (% Y-O-Y)
Demand Growth in FY 2023-24
Capital Expenditure by Govt. (` lakh crore)
India's Trade Growth
50
-1
-1
1
2
3
4
5
6
7
8
9
-30%
-20%
-10%
0%
10%
20%
7.8
6.8 6.5
5.2
4.6
4.1
2.5 2.7
1.9
0.4 0.8
1.5
1.9
0.9 1
0.9 0.7
1.4
0.3
0.2
1.3
3.2 3.2 3.2
52
54
56
58
60
62
64
Light Motor Vehicle Sales
6.1%
7%
12.3%
18.0%
7.4
9.5
16.8%
28.4%
11.1
41.6%
Electricity Generation
Steel Consumption
Passenger Air Traffic
Electric Vehicle Sales
Mar-24
Mar-24
Jan-23
FY23 (Actual)
FY24 (RE)
FY25 (BE)
Jan-23
Mar-23
Mar-23
May-23
May-23
Jul-23
Jul-23
Sep-23
Sep-23
Nov-23
Nov-23
Jan-24
Jan-24
Manufacturing PMI
Export
Service PMI
Import
India
China
US
Euro Area
Japan
France
Germany
World
2023
2024
2025
150
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
151
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ALUMINIUM
ZINC
Market Overview
FY 2023-24 presented a dynamic environment for the
aluminium market. While the early part of the year witnessed
LME prices adjusting to US$ 2,100/tonne by June 2023 due
to global macroeconomic factors, the market demonstrated
resilience. Despite ongoing geopolitical tensions and
economic headwinds, including the ongoing Russia-Ukraine
war, the European energy crisis, and global inflation, metal
prices remained relatively stable throughout most of the
year. This stability reflects the continued robust underlying
The Zinc Market in FY 2023-24
In FY 2023-24, the zinc market navigated a dynamic
landscape marked by fluctuating LME prices. Early price
corrections saw a dip from US$ 2,900/tonne in April 2023
to US$ 2,300/tonne in June 2023. However, the market
demonstrated remarkable resilience by stabilising in the
latter half of the year. This stability came in the form of a
range-bound pattern supported by rising LME inventories.
The year concluded with a healthy average LME price of
US$ 2,475/tonne, showcasing the market's ability to adapt to
changing conditions.
On the supply and demand side, FY 2023-24 witnessed a
modest 1% increase in global production of refined zinc,
reaching 13.6 million tonnes. While global demand plateaued
at 13.5 million tonnes, primarily due to reduced consumption
in some regions, the market effectively adjusted. This
adjustment involved an increase in warehouse stocks, which
demand for aluminium across various sectors. A brief price
increase in the latter part of the calendar year, particularly
in December 2023, likely driven by concerns about potential
sanctions on Russian metal, further underscored the
market's sensitivity to supply disruptions. However, prices
ultimately returned to around US$ 2,200/tonne by year-end,
demonstrating a degree of market stability.
In CY2023, global primary aluminium production remained
flat at ~70.0 million tonnes, while demand also stagnated
at 69.8 million tonnes, resulting in a global surplus of
0.2 million tonnes. Excluding China, production and
consumption of aluminium remained stable. In India, the
domestic demand surged 17% from ~4.6 million tonnes in
FY 2022-23 to ~5 million tonnes in FY 2023-24.
Products and customers
Vedanta is India’s largest primary aluminium producer
with an annual capacity of ~2.4 million tonnes. 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 energy,
transportation, construction and packaging, aerospace and
defence, among others. It has achieved a domestic market
share of 46% as of 31 March 2024 after its domestic sales
volume increased by ~25% in FY 2023-24.
In line with the evolving market needs and the focus on
value creation through expanding margins, the Company
has been steadily increasing its value-added product (VAP)
share in the portfolio which currently accounts for ~45% of
its total global aluminium sales.
mitigated spot metal premiums and provided a buffer against
price volatility. The market's resilience was further tested
by factors like subdued demand from China and persistent
global interest rate hikes. However, positive anticipation
surrounding Chinese economic stimulus measures instilled
intermittent market optimism. The latter part of the year
saw adjustments due to concerns over China's recovery and
rising inventories, highlighting the market's responsiveness to
external influences.
In contrast to these global trends, India emerged as a bright
spot in zinc demand. The country experienced a robust 17%
Y-O-Y surge in FY 2023-24, fuelled by strong economic
policies and a focus on infrastructural development. This
growth trajectory serves as a testament to India's growing
industrial prowess and the government's commitment to
building a robust infrastructure network.
Products and customers
Hindustan Zinc Limited (HZL), a leader in the Indian zinc
market, holds the distinction of being the country's largest
and only primary zinc producer. With a commanding 75%
market share in FY 2023-24, HZL plays a pivotal role in
driving the industry forward. The Company's domestic
sales success story reflects the thriving Indian market, with
a remarkable 20% Y-O-Y growth in FY 2023-24, reaching
a record-breaking 580 kt of sales. HZL is strategically
expanding its product portfolio, evident in its historically high
sales of 161 kt of value-added products (VAP) in FY 2023‑24.
This diversification from 15% to 20% VAP demonstrates
HZL's commitment to cater to the evolving needs of the
market. Aligning with the positive momentum in the zinc
market, HZL projects a 20% Y-O-Y increase in domestic sales
for FY 2024-25, marking a historic high, further bolstered by
an expanded Value-Added Products (VAP) portfolio.
Market Outlook
The global aluminium market is on an exciting
growth trajectory, with annual demand projected to
reach 122 million tonnes by CY 2030. The demand
is expected to increase at a CAGR of ~3%, driven by
the global push for decarbonisation. Aluminium's
lightweight, corrosion resistance, electrical conductivity
and recyclable nature make it an ideal material for
clean energy solutions, with sectors like renewable
energy and electric vehicles expected to consume a
substantial 16 million tonnes by 2030. Furthermore,
increased investment in infrastructure development will
create another avenue for aluminium demand.
China, the world's largest aluminium consumer, shows
promising signs of continued domestic consumption
growth. However, its long-term success hinges on
sustained growth in the transportation sector and
modest recovery of the building and construction
industry. For the Rest of the World (RoW), CY 2024 is
expected to bring a modest increase in demand as
inflation rates decline, enabling acceleration in the rate
of investment.
Meanwhile, India stands out with a robust domestic
demand outlook, projecting growth of over 10% for
FY 2024-25. Key sectors like electronics, appliances,
and anticipated growth in renewables, defence,
and aerospace will continue to drive aluminium
consumption in the country.
Looking Ahead: A Promising Future for Zinc
The global zinc market is poised for continued growth
in FY 2024-25. Global refined zinc production is
projected to rise by 1.53% to approximately 13.9 million
tonnes, while consumption is expected to grow by
2.3% to 13.8 million tonnes. The People's Bank of
China's proactive measures, such as the reduction in
the Reserve Requirement Ratio, signal a commitment
to economic revitalisation. This, coupled with the
anticipated easing of US interest rates and a potential
3% increase in Chinese zinc consumption in 2024,
suggests a favourable environment for zinc prices and
broader economic health.
The Indian zinc market is particularly well-positioned
for significant growth, with an estimated 19% Y-O-Y
increase projected for FY 2024-25. This growth
is driven by the government's consistent push
for infrastructure development, urbanisation and
industrialisation, which will create significant demand
for zinc-intensive materials. India's leadership in steel
production and the strong growth observed in the
Index of Industrial Production (IIP) and Manufacturing
PMI numbers further underscore a thriving economy
with a growing appetite for zinc. Positive market
sentiments continue to prevail in India, driven by the
nation's comprehensive growth across sectors like
construction, electricity, and automotive. This growth
fuels zinc demand, leading to a projected expansion of
the Indian zinc market by 5.2% to 810 kt in FY 2024‑25.
SEGMENT REVIEW
152
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
153
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
LEAD
SILVER
Overview
Global lead market exhibited remarkable resilience despite
macroeconomic headwinds in FY 2023-24. Global lead
prices averaged a healthy US$ 2,121/t, reflecting a slight
increase from FY 2022-23. However, downward pressure
emerged towards the second half of the year. This correction
was mainly driven by two key factors, subdued demand
growth in developed economies (USA, EU, China) due to
high inflation and rising interest rates, and an increase in
refined lead production reaching 13.8 million tonnes in
FY 2023‑24 (1.8% increase). This imbalance between mined
and refined lead output and demand led to temporary metal
A Year of Growth and Promise
The silver market showcased a stellar performance in
FY 2023-24, overcoming initial price volatility to ultimately
deliver a year marked by growth. LBMA prices commenced
robustly at US$ 23.8/oz but underwent a period of
consolidation. Despite these fluctuations, the market found
stable ground, culminating in a commendable 10% Y-O-Y
increase, with an average price of US$ 23.55/oz. This positive
trend was underscored by silver prices performing strongly in
the closing month of March 2023.
surpluses, suppressing prices. LME and SHFE warehouse
inventories saw a significant rise in Q4 FY 2023‑24, further
impacting prices.
India presented a contrasting picture compared to the
global market. Primary lead demand in FY 2023-24 reached
an estimated 199 kt, marking a slight decrease from the
previous year. This is primarily attributed to the increased
consumption of secondary lead and alternative materials.
Interestingly, the Indian auto industry defied the global trend
with a robust 10% Y-O-Y growth. The EV segment exceeded
expectations, with BEV sales experiencing a phenomenal
100% increase in FY 2023‑24.
Company Overview
Hindustan Zinc Limited (HZL) proudly stands as a premier
lead producer in India, commanding an impressive 66%
market share in the primary market in FY 2023-24. Its
commitment to quality is reflected in its production of
high‑grade lead ingots with a purity level of 99.99%, which
has earned the distinction of being registered with the
London Metal Exchange (LME). During the fiscal year, a
significant 63% of the Company’s output catered to the
increasing domestic demand, while the remainder was
exported to international markets. Moving forward, the
Company’s strategy is geared towards deepening its footprint
across India. It aims to amplify domestic sales to 100%,
leveraging its vigorous customer acquisition initiatives and
the development of innovative applications. This underscores
its dedication to nurturing the Indian market and its
confidence in its growth potential.
Globally, the silver supply experienced a notable 5%
increase in CY 2023, reaching an estimated 1.055 billion
ounces (Boz). This expansion is largely credited to a 5%
surge in mine production, propelled by the inauguration
of new mining operations in Mexico and enhanced silver
yields from Chilean gold mines. Moreover, silver recycling
made a significant contribution, adding ~200 million
ounces to the total supply.
On the demand front, global silver consumption soared
to a near-record 1.15 Boz, reaffirming its status as the
second-highest level in history. Despite a modest downturn
in jewellery and silverware sectors, this was compensated
by the industrial sector’s robust performance. Industrial
silver demand, projected to have grown by 4%, reached an
unprecedented 576 Moz. This increase is attributed to the
escalating application of silver in vehicle electrification and
the development of essential charging infrastructure.
Company Overview
Hindustan Zinc (HZL), a key player in the global silver
arena, continues to exert a major influence. Ranking as the
world’s 5th largest silver producer, HZL recorded a historic
high in domestic sales, reaching 740 kt in FY 2023-24,
marking a 4% increase from the previous year. With an eye
on the increasing demand for silver, HZL is strategically
augmenting its production capabilities to cater to the
expanding market needs.
Market Drivers
Looking ahead, the lead market is expected to witness a
more balanced supply-demand scenario in FY 2024‑25.
Global supply is projected to increase by 1.3% to
14.1 million tonnes, while demand is anticipated to reach
14.1 million tonnes, reflecting a 1.7% growth.
Globally, lead-acid batteries, despite facing competition
from substitutes in the evolving EV landscape, will
continue to be crucial for powering essential electrical
systems in these vehicles, contributing to lead demand.
Additionally, the global transition towards sustainable
solutions will drive the adoption of lead-acid batteries for
renewable energy storage systems.
The Indian market is expected to benefit from its buoyant
economic growth and rising vehicle population, leading
to continued strong lead demand. Furthermore, growth
in Battery Energy Storage Systems (BESS) deployments
will create significant lead demand opportunities as the
contribution of renewable energy to the grid increases.
Government initiatives like FAME-II and Electric Mobility
Promotion Scheme 2024 (EMPS 2024), promoting the
adoption of electric vehicles (EVs), will further solidify
domestic lead demand. The automotive sector, projected
to grow by 6.4% in India until 2031, will remain a key
driver due to its reliance on lead-acid batteries and
inverter batteries. Additionally, government stimulus
programmes and strong export demand for lead-
intensive products like galvanised sheets are expected
to indirectly drive lead consumption through its role as a
by-product of zinc mining.
Market Drivers
Looking ahead, the prospects for silver are even brighter
with an estimated 1.2 Boz silver demand in FY 2024-25.
The overall demand is being driven by several factors:
•
Industrial Demand Surge: The industrial sector’s
appetite for silver is forecasted to climb by an
impressive 4%, achieving a historic peak of 690 Moz.
This growth is driven by the further increasing
photovoltaics (PV) and automotive industries,
which heavily depend on silver’s exceptional
conductive qualities.
•
Resurgence in Jewellery Fabrication: Jewellery
production, especially in India, is poised for a significant
9% uptick, contributing to a worldwide consumption
increase of 6%. This resurgence underscores silver’s
enduring cultural value, particularly during India’s
festive seasons such as Diwali and Akshaya Tritiya.
•
India’s Industrial Silver Revolution: India’s industrial
silver usage, currently trailing behind global averages,
is set for a substantial leap forward. The rise of
cutting-edge technologies like electric vehicles (EVs)
and 5G networks is anticipated to fuel a considerable
surge in domestic silver demand.
154
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
155
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
OIL AND GAS
POWER SECTOR
Global Oil Market Overview
The year 2024 has witnessed a moderate increase in the
global oil supply, primarily driven by non-OPEC countries, with
the United States and Brazil leading the charge. The global oil
demand has followed an upward trajectory, with an estimated
increase of 1.3 million barrels per day (mbpd), reflecting the
ongoing economic recovery. This demand is primarily driven
by non-OECD countries. A steady increase in transportation
and industrial fuel demand, supported by the recovery in
economic activity in China and other non-OECD regions
boosted the demand.
Demand and Supply
India's power sector is experiencing explosive growth.
Currently ranking third in global electricity production with
a staggering 428 GW installed capacity (as of December
2023), the country has witnessed an impressive 11 GW
India’s oil demand in CY 2023 increased to 5.34 Mb/d
(+0.21 Mb/d). In the near term, India’s economic growth is
expected to remain robust on the back of strong domestic
demand, ongoing economic and business activities,
proactive government policy measures, and increased capital
expenditure for sustainable infrastructure development, which
is expected to boost India’s oil demand in H12024.
During the year, the average crude oil price stood at
US$ 82.6/bbl in CY2023, an 18% drop compared to CY2022.
This decline in crude price vis-à-vis CY2022 can be attributed
to the potential easing of sanctions imposed by G7 nations
due to the Russia-Ukraine war. The major drivers of oil prices
in CY2023 were the OPEC+ production cuts and the Israel-
Hamas conflict in Gaza that heightened the tensions in the
Middle East with ongoing maritime disruptions in the Red Sea.
Apart from this, concerns about the weaker economic outlook
of major economies also impacted the prices.
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 1,376 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. The Company’s entire
crude oil and natural gas production in FY 2023-24 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.
increase from the previous fiscal year. Despite significant
investments in renewable energy sources (comprising 42%
of installed capacity), thermal power remains the dominant
force, contributing a substantial 79% to total generation.
This highlights the ever-increasing power demand in
line with India's robust economic growth. In FY 2023-24,
electricity demand surged by 7.9% to reach 1,227 BUs, with
peak power demand experiencing a remarkable 12.5% jump
to 243 GW.
Products and customers
Vedanta Group is exceptionally well-positioned to capitalise
on this flourishing power market. With a robust total
portfolio of ~12 GW (combining IPP and CPP capacities),
Vedanta currently holds the title of second-largest private
player in the Indian power sector. The Company has
key IPP assets like Talwandi Sabo plant (1980 MW) and
Jharsuguda plant (600 MW). Furthermore, the soon‑to‑be
operational Meenakshi (1000 MW) and Athena (1,200 MW)
power plants will bolster the Company’s growth. Upon
completion of these projects by FY 2025-26, Vedanta's
commercial power portfolio is expected to reach a
remarkable 4,780 MW, solidifying its position as a dominant
player in the thermal power sector.
Market Drivers
As per OPEC, global oil demand is expected to increase
by 2.2 Mbpd to 104.5 Mbpd in CY 2024 supported
by strong air travel demand, increased road mobility,
including on-road diesel usage and trucking, as well as
thriving industrial, construction and agricultural activities,
especially in non-OECD countries. The anticipated growth
in non-OPEC petroleum liquids production stands at
1.1 million barrels per day (mb/d) in CY 2024. The primary
drivers for the growth in liquids supply in CY 2024 include
the United States, Canada, Brazil, and Norway, while
notable declines are projected for Russia and Mexico.
Geopolitical uncertainties like the Russia-Ukraine war and
the Red Sea crisis can be major factors that affect the
global oil supply.
According to the US Energy Information Administration
(EIA), Brent crude oil prices will average at US$ 87 per
barrel in CY 2024. Persisting tensions in the Middle
East along with the OPEC+ production cuts can push oil
prices upwards.
India is projected to significantly amplify its presence
in global oil markets throughout the rest of the decade,
driven by robust expansion in its economy, population,
and demographics. India’s oil demand is expected to
grow by 0.2 Mbpd to 5.6 Mbpd in CY 2024 supported
by the expansion of airline activities and increasing
GDP growth rate. The current positive momentum of
economic activity in India is expected to continue in
CY 2024.
Market Drivers
Several key macroeconomic factors are fuelling this
power sector boom in India. India's population is
projected to reach a staggering 1.5 billion by 2030,
with rapid urbanisation further propelling electricity
demand. Additionally, India’s current per capita electricity
consumption is significantly lower compared to global
averages. At 1300 kWh, it is merely one-third of the world
average and one-fifth of China’s consumption. This vast
disparity signifies an enormous potential for growth in the
coming years.
Looking ahead, the future of India's power sector is
shining with exciting possibilities. The government and
industry experts anticipate a phenomenal rise in installed
capacity, reaching an estimated 800 GW by CY 2030,
at a projected CAGR of 11%. This expansion presents a
substantial opportunity for private players like Vedanta
to play a pivotal role in meeting the nation's growing
energy needs.
There is a minimum of ~87 GW of additional thermal
capacity addition required in the next 7 years, which
presents an enormous opportunity for the industry. In
contrast, this is the same quantum of thermal capacity
installed in the last 15 years (2007-2022). Furthermore,
the CEA has issued an advisory to existing thermal
power utilities not to retire or repurpose their plants
before 2030, considering the expected power demand. It
is noteworthy that thermal power is expected to continue
serving as the primary source for baseload demand
until efficient and economical RE storage solutions are
readily available.
These favourable trends in the power industry, have
resulted in an increase in thermal Plat Load Factors
(PLFs) across the country to 70% in FY 2023-24 from
66% in FY 2022-23. Additionally, RTC (round the clock)
tariffs for power in the power exchanges (IEX, PXIL) have
consistently increased, with an average of ` 5.4/kWh
in FY 2023-24, resulting in better realisations for the
power sector.
156
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STATUTORY REPORTS
FINANCIAL STATEMENT
157
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
IRON ORE
STEEL
The global iron ore market in CY 2023 displayed remarkable
resilience and adaptability in the face of challenges including
price volatility. While prices fluctuated throughout the year,
reaching a low in May 2023 due to temporary demand
dips, they recovered significantly due to several positive
developments. These included:
•
Reduced Raw Material Inventories: Lower stockpiles at steel
mills created a buying urgency, pushing prices upwards.
•
Resumption of Steel Mill Operations: The restart of
some steel mills increased demand for iron ore, further
stabilising prices.
•
Concerns Over Future Supply: The BHP strike
raised concerns about potential supply disruptions,
prompting some buyers to secure stocks, which in turn
supported prices.
Overview
India is the second-largest steel producer in the world with
steel as one of India’s core industries, contributing more than
2% to the GDP. In FY 2023-24, India’s crude steel production
is expected to increase by ~14% on a yearly basis with crude
steel production at ~143 million tonnes.
The government’s emphasis on infrastructure development
and affordable housing has led to an increase in finished
steel consumption which is expected to grow by ~14%
to 135 million tonnes in FY 2023-24. Backed by a slew of
initiatives, including the National Infrastructure Pipeline (NIP)
and PM Gati Shakti National Master Plan (NMP), India’s
per capita steel consumption jumped to 87 Kg per capita
in FY 2023‑24 from 77 Kg per capita in FY 2022-23. As per
the National Steel Policy, steel consumption is projected to
reach 158 Kg per capita by FY 2030-31 with a capacity of
300 million tonnes.
The year ended on a positive note with global iron ore prices
averaging US$ 119/t in CY 2024, an increase of 2.5% Y-O-Y.
India, a key player in the iron ore market, witnessed a stellar
year in FY 2023-24. Domestic iron ore production reached an
all-time high of ~282 million tonnes, reflecting a significant
13% Y-O-Y increase. This growth was mirrored in domestic
steel production, which surged by 10% to reach ~139 million
tonnes. Additionally, India's iron ore exports rose to a three-
year high of over 44 million tonnes, showcasing the country's
growing importance in the global iron ore landscape.
Company Overview
The Company has established itself as a significant player
in the production of iron ore and pig iron, serving the
steelmaking, construction, and infrastructure sectors. With
a strategic focus on enhancing its mining operations, the
Company has successfully increased its output to 5.9 million
tonnes per annum (MTPA) of iron ore from its Karnataka
mines. In a recent expansion, the Company acquired the
FEE grade and BICO iron ore blocks located in Barbil, Odisha,
during the fiscal year 2022. These mines became operational
in FY 2022-23, contributing an additional 5.5 MTPA to the
Company’s capacity.
Expanding its global footprint, the Company commenced
operations at the Bomi mine in Liberia. As of 19 March 2024,
the mine has produced 0.5 million tonnes of saleable ore,
with an ambitious target of 2.5 MTPA set for FY 2024-25.
The Company’s reach has grown in India with the acquisition
of the Bicholim mine in Goa, which boasts resources of
84.92 MTPA. The Bicholim mine will be operational by the
end of FY 2023-24, with a production target of 3 MTPA for
FY 2024‑25.
With subdued global demand, prices of steel products
reduced globally, along with an increase in exports from
China. India is likely to remain a net importer of steel in
FY 2023-24 which has impacted domestic prices as well.
Products and customers
ESL Steel Limited boasts a state-of-the-art integrated steel
plant with a capacity of 1.7 MTPA, supported by its own
captive mines in Odisha and a coke oven plant.
The Company has a robust and diversified product portfolio,
offering TMT rebars, wire rods, ductile Iron pipe, billet and
pig Iron to its customers. With ongoing projects, the plant’s
capacity is expected to reach 3 MTPA by FY 2024-25.
In FY 2023-24, the Company achieved its highest‑ever
finished sale of 1.4 MTPA (~11% increase Y-O-Y)
supported by strong domestic demand for steel and pipe
segment. The Company consistently prioritises the sales
of value‑added grades and developed various new grades
during the year, achieving its highest ever (~75%) sales of
high carbon and alloy grade in Wire Rod. ESL has achieved
its highest ever Ductile Iron pipe sales of ~0.21 million
tonnes in FY 2023‑24, supported by robust demand and
product optimisation.
In the TMT segment, the Company has received various key
approvals. With the UK CARES quality certificate in place for
TMT, the Company has made its first-ever export shipment
to Tanzania. With its vision to reach the last customer
and expansion underway, the Company conducted a
national retail launch from Bihar in October 2023, garnering
media coverage and attended by 250+ engineers, dealers
and influencers.
Demand Drivers
Looking ahead, the outlook for the Indian iron ore
sector appears even brighter. Production is expected to
climb further, reaching an estimated 330 million tonnes
in FY 2024-25, a 17% increase Y-O-Y, fuelled by the
operationalisation of new mines and capacity expansions
at existing ones. This growth aligns with the National
Steel Policy's projections for crude steel production,
paving the way for a robust iron ore market in India.
The global iron ore market will likely be influenced by
Chinese stimulus policies in the near term, considering
China’s position as the largest consumer of iron ore in the
world. With China's ongoing economic recovery, marked
by a strong infrastructure and export sector balanced
against a slump in consumption and property sectors, any
stimulus decisions following the April politburo meeting
could significantly impact iron ore prices.
India's iron ore beneficiation capacity is also expected
to increase in FY 2024-25, reaching 143 million tonnes
from the existing 136 million tonnes. This aligns with
the government's push for low-grade ore beneficiation,
promoting the utilisation of domestic resources and
reducing dependence on imports.
While a recent surge in iron ore exports has led to
concerns from some small steel producers, the overall
outlook for domestic steel demand remains positive.
The Indian government's optimistic projections for
the country's economic growth further bolster this
confidence. With continued growth in domestic
production, rising beneficiation capacity, and a strong
demand outlook, India is well-positioned to be a major
force in the global iron ore market for years to come.
Market Drivers
The government has been focussed on its vision of
achieving a steel capacity of 300 million tonnes by 2030,
and this commitment was evident in the increased capital
expenditure outlay by 11.1% to ` 11.11 lakh crore in the
Interim Budget FY 2024-25.
Driven by an unwavering commitment to make India
a US$ 5 trillion economy, initiatives such as ‘Make in
India’, Pradhan Mantri Awas Yojna and PLI Schemes
are propelling the growth of the country. With increasing
disposable income, urbanisation and a strong impetus to
infrastructure development, steel demand is expected to
remain robust in the coming year.
In FY 2024-25, the government will maintain its focus
on the infrastructure, construction and auto sectors.
2 crore additional houses have been planned in the
next 5 years under the PM Awas Yojana, while 3 new
Economic corridors have been sanctioned under the
PM Gati Shakti, and various new airport developments
have been planned in the UDAN scheme. Furthermore,
the reduction in import duties for machine parts used in
producing Li-ion batteries for electric vehicles will boost
the auto industry and consequently, steel consumption.
Additionally, the government has prioritised ensuring
clean and safe water supply in India through various
schemes such as the Jal Jeevan Mission and Amrut,
with an allocation of over ~` 1 lakh crore in FY 2023-24.
158
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
159
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
HIGH CARBON FERRO CHROME
COPPER
Overview
High Carbon Ferro Chrome (HCFC) is pivotal to the global
stainless-steel industry, enhancing its non-corrosive, durable,
and temperature-resistant qualities. Over 85% of HCFC
production is dedicated to stainless steel manufacturing,
indicating that a flourishing stainless-steel sector is a
bellwether for strong HCFC demand.
Asia, with China at the helm, dominates the HCFC landscape,
accounting for 85% of consumption and holding substantial
chromite ore reserves, the essential raw material. Although
South Africa is the premier chromite ore supplier worldwide,
China’s leadership in HCFC production positions it as a
dominant force in shaping global market dynamics and
pricing structures.
Overview
FY 2023-24 was a dynamic year for the copper market.
While global consumption, particularly in China, navigated
a period of moderation, India's copper market emerged
as a robust and promising space. Notably, the latter part
of the year witnessed a resurgence in LME copper prices,
driven by a combination of supply disruptions and a
positive shift towards renewable smelting methods.
India's refined copper consumption witnessed a stellar
26.6% increase in CY 2023. This surge was fuelled by
several key growth drivers, including the electrification
of the transportation sector, increased use of copper in
India is playing a significant role in the HCFC market, securing
the position as the world’s fourth-largest producer with
an output of ~1.3 million tonnes in CY 2023. India’s HCFC
market is characterised by an export orientation, with ~60%
of its production being exported.
Despite a downturn in international HCFC prices in
FY 2023‑24, attributed to subdued purchasing in China
and Europe, India’s domestic market demonstrated
remarkable resilience. International prices may have
receded to US$ 1,183/mt by Q4, but India’s domestic prices
saw a significant rebound, averaging US$ 1,364 from
December 2023 to February 2024, underscoring a robust
internal demand.
Company Overview
Ferro Alloys Corporation (FACOR) stands out in the
domestic HCFC sector, ranking as the fourth-largest
supplier amidst a predominantly export-oriented industry.
In FY 2023‑24, FACOR channeled 85% of its HCFC production
to meet the needs of domestic stainless steel and alloy
steel manufacturers.
FACOR is also strategically augmenting its Value-Added
Products (VAP) portfolio, thereby securing a competitive edge
to serve specialised markets in Europe and South Korea.
Looking forward to FY 2024-25, FACOR’s strategy is geared
towards amplifying production volumes and expanding its
market presence, both domestically and globally.
At our Ferroalloy business, our strategic emphasis remains
on capacity expansion, domestic sales, VAP development,
and international market expansion. We are ideally positioned
to thrive in this dynamic market landscape.
construction activities, and industrial expansion spurred
by the PLI scheme. Additionally, a rise in consumer
durables like air conditioners and electronics further
bolstered demand.
It is noteworthy that ~40% of India's domestic copper
consumption fuels the building and infrastructure sector,
while another 11-13% caters to the consumer durables
and automotive industries. While India's domestic copper
production has faced some limitations, the vibrant
economy continues to flourish. This gap is being effectively
bridged by a rise in refined copper imports, a trend
projected to continue in the near future.
Company Overview
The Company, with its strong presence, product
diversification, and focus on innovation, is well-positioned
to capitalise on the lucrative opportunities in the industry.
As one of the largest copper producers in India with a
diverse product portfolio, the Company caters to a wide
range of customers, including housing wire, winding
wire and cable, transformer, and electrical profile
producers. Its commitment to new product development
further strengthens its market position. Notably, the
Company holds a significant 20% market share in India
and is actively exploring export markets, particularly in
neighbouring countries and the Gulf region. Additionally,
its focus on developing green copper production
methods underlines its commitment to sustainability and
long‑term competitiveness.
Market Drivers
With India’s solid domestic market and the anticipated
global upswing in stainless steel production, the outlook
for HCFC is optimistic. With increasing infrastructure
initiatives in developing nations and an expected
resurgence in demand from China, stainless steel
production is projected to grow steadily by 4-5% in the
upcoming year. This growth trajectory is set to catalyse
HCFC demand worldwide, with production forecasts
suggesting an increase of 3-4%.
India, however, is on track to surpass the global growth
rate, emerging as the fastest-expanding market for both
stainless steel and HCFC production. The anticipated
7-8% growth is propelled by the Indian government’s
substantial investment in infrastructure development.
Moreover, India’s per capita consumption of stainless
steel is poised for a significant uptick, mirroring the
expanding domestic HCFC market.
Market Drivers
India's copper demand is projected to reach a staggering
3 million tonnes by CY 2030, with an estimated increase
of ~9.5% expected for CY 2024. This growth will be
driven by key sectors such as building and construction,
manufacturing, transportation, and consumer durables.
The burgeoning Electric Vehicle (EV) segment, with
its inherently higher reliance on copper compared to
traditional vehicles, is poised to be a major catalyst
for demand.
Looking ahead, several factors contribute to the positive
outlook for the Indian copper market:
•
Government Initiatives: The government's strong
commitment to infrastructure development, evidenced
by initiatives like the National Infrastructure
Pipeline (NIP) and increased budgetary allocations,
bodes well for copper demand as a crucial
infrastructure material.
•
Economic Growth: A robust Indian economy
fosters activity in copper-intensive industries
like construction and power, leading to
sustained demand.
•
Green Focus: India's ambitious renewable energy
goals and the burgeoning EV market, both heavily
reliant on copper, are creating exciting new avenues
for demand growth.
160
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
161
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCE REVIEW
Executive summary:
We had a strong operational and financial performance
in FY 2023-24 amidst the challenges faced due to
macroeconomic uncertainty. We remained focussed on
controllable factors, including resetting the cost base
through diverse cost optimisation initiatives, disciplined
capital investments, working capital management, marketing
initiatives, and volume control, all the while ensuring safe
operations in line with Government and corporate guidelines.
In FY 2023-24, we recorded an EBITDA of ` 36,455 crore,
marking a 3% increase Y-O-Y, with a robust double digit
adjusted EBITDA margin1 of 30%. (FY 2022-23: ` 35,241 crore,
margin 28%). This growth was primarily attributed to the
softening of input commodity prices coupled with cost
savings, one time arbitration award in Oil & Gas business
and rupee depreciation partially offset by slip in commodity
prices primarily of aluminium, zinc and brent and strategic
hedging gain recognised in previous year.
Cost savings resulted in increase in EBITDA by ` 1,508 crore,
driven by Aluminium partially offset by Iron Ore and
Zinc business.
Market factors resulted in decrease in EBITDA by
` 1,817 crore. This was primarily driven by decrease in output
commodity prices partially offset by softening of input
commodity prices and rupee depreciation.
Gross debt as on 31 March 2024 was ` 71,759 crore,
increase of ` 5,577 crore since 31 March 2023, driven
mainly by increase at THL Zinc Ventures, Meenakshi Energy
and Balco, partially offset by reduction of debt at HZL and
CIHL. Meanwhile, our Net debt as on 31 March 2024 was
` 56,338 crore, increased by ` 11,078 crore since 31 March
2023 (FY 2022-23: ` 45,260 crore), primarily due to capex
outflow and return to shareholders, partially offset by cash
flow from operations and working capital release.
Despite these dynamics, Vedanta Limited's balance sheet
remains robust, boasting cash and cash equivalents of
` 15,421 crore and a Net Debt to EBITDA ratio of 1.5x
(FY 2022-23: 1.3x).
1. Excludes custom smelting at copper business.
Consolidated EBITDA
EBITDA increased by 3% in FY 2023-24 to ` 36,455 crore.
(` crore, unless stated)
Consolidated EBITDA
FY 2023-24
FY 2022-23
% change
Zinc
14,255
19,408
(27%)
-
India
13,562
17,474
(22%)
-
International
693
1,934
(64%)
Oil and Gas
9,777
7,782
26%
Aluminium
9,657
5,775
67%
Power
971
913
6%
Iron Ore
1,676
988
70%
Steel
225
316
(29%)
Copper
(69)
(4)
FACOR
115
149
(23%)
Others
(152)
(86)
(77%)
Total EBITDA
36,455
35,241
3%
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
STATUTORY REPORTS
Management Discussion
and Analysis
FINANCIAL STATEMENT
CORPORATE OVERVIEW
163
162
Consolidated EBITDA bridge:
(` crore, unless stated)
EBITDA for FY 2022-23
35,241
Market and regulatory: (1,817)
Prices, premium / discount
(12,438)
Direct raw material inflation
8,364
Foreign exchange movement
2,257
Operational: 1,165
Volume
(343)
Cost savings
1,508
Others
1,866
EBITDA for FY 2023-24
36,455
a) Prices, premium/discount
Commodity price fluctuations have a significant impact
on the Group’s business. During FY 2023-24, we saw a
net negative impact of ` 12,438 crore on EBITDA due to
slip in commodity prices.
Zinc, lead and silver: Average zinc LME prices during
FY 2023-24 decreased to US$ 2,475 per tonne, down
25% Y-O-Y; lead LME prices increased to US$ 2,122 per
tonne, up 1% Y-O-Y; and silver prices increased to
US$ 23.55 per ounce, up 10% Y-O-Y. The cumulative
impact of these price fluctuations decreased EBITDA by
` 4,852 crore.
Aluminium: Average aluminium LME prices decreased
to US$ 2,200 per tonne in FY 2023-24, down 11% Y-O-Y,
this had a negative impact of ` 5,270 crore on EBITDA.
Oil & Gas: The average Brent price for the year was
US$ 83 per barrel, down 13% Y-O-Y. This had negative
impact on EBITDA by ` 1,645 crore.
Iron & Steel: Lower realisations negatively impacted
EBITDA at ESL by ` 974 crore. Higher realisations
positively impacted EBITDA at Iron Ore by ` 607 crore.
b) Direct raw material inflation
Prices of key raw materials such as imported alumina,
thermal coal, carbon and coking coal have decreased
in FY 2023-24, positively impacting EBITDA by
` 8,364 crore, primarily at Aluminium, Zinc and Iron &
Steel business.
c) Foreign exchange fluctuation
Rupee depreciated against the US dollar during
FY 2023-24. Stronger dollar is favourable to the
Group’s EBITDA, given the local cost base and
predominantly US dollar-linked pricing. The favourable
currency movements positively impacted EBITDA by
` 2,257 crore.
Key exchange rates against the US dollar:
Average
year ended
31 March
2024
Average
year ended
31 March
2023
%
change
As at
31 March
2024
As at
31 March
2023
Indian
rupee
82.78
80.27
3.13%
83.34
82.16
d) Volumes
Lower volume led to decrease in EBITDA by ` 343 crore
by following businesses:
Oil & Gas (negative ` 618 crore): In FY 2023-24, sales
reduced from 91 Kboepd to 82 Kboepd
ZI (negative ` 489 crore): In FY 2023-24, MIC sales
lowered to 209 kt, down 24% Y-O-Y
Partly offset by:
Aluminium (positive ` 249 crore): In FY 2023-24,
Aluminium sector achieved sales of 2,357 kt, up 3% Y-O-Y
Iron Ore (positive ` 229 crore): In FY 2023-24, Iron
Ore Karnataka achieved sales of 5.9 million tonnes,
up 19% Y-O-Y and Pig Iron achieved sales of 836 kt,
up 23% Y-O-Y
HZL (positive ` 144 crore): In FY 2023-24, HZL achieved
silver sales of 746 tonnes, up 4% Y-O-Y
e) Cost savings
Lower cost resulted in increase in EBITDA by
` 1,508 crore during FY 2023-24, primarily due to cost
savings at Aluminium partially offset by higher cost at
Iron Ore, Zinc and Oil & Gas business.
f) Others
This primarily includes one-time arbitration award in Oil
& Gas business partially offset by strategic hedging gain
recognised in previous year, impacting EBITDA positively
by ` 1,866 crore.
Income statement
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
Change
Net Sales/Income from Operations
1,41,793
1,45,404
(2%)
Other Operating Income
1,934
1,904
2%
EBITDA
36,455
35,241
3%
EBITDA margin1 (%)
30%
28%
-
Finance Cost
9,465
6,225
52%
Investment Income
2,341
2,851
(18%)
Exchange Gain /(Loss)
(264)
(492)
46%
Exploration Cost written off
(785)
(327)
-
Profit before Depreciation and
Taxes
28,283
31,048
(9%)
Depreciation and Amortisation
10,723
10,555
2%
Profit before Exceptional items
17,560
20,493
(14%)
Exceptional items2 : credit/
(expense)
2,803
(217)
Taxes3
12,826
5,770
-
Profit after taxes4
7,539
14,503
(48%)
Profit after taxes
(before Exceptional Items)
11,254
14,449
(22%)
Minority interest
3,300
3,929
(16%)
Attributable PAT
(after exceptional items)
4,239
10,574
(60%)
Attributable PAT
(before exceptional items)
7,956
10,521
(24%)
Basic earnings per share (`/share)
11.42
28.50
(60%)
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
Change
Basic EPS before exceptional items
(`/share)
21.40
28.36
(25%)
Exchange Rate (`/US$) – Average
82.78
80.27
3%
Exchange Rate (`/US$) – Closing
83.34
82.16
1%
1. Excludes custom smelting at Copper business
2. Exceptional Items gross of tax
3. Tax includes tax expense on exceptional items of ` 6,520 crore on
special items in FY 2023-24 (FY 2022-23: tax benefit of ` 274 crore)
4. Includes share in profit/ (loss) of jointly controlled entities and
associates
Revenue
Revenue for the year was ` 1,41,793 crore, lower 2% Y-O-Y.
This was primarily driven by lower output commodity prices
primarily of zinc, aluminium and brent, partially offset by
higher volume at Aluminium, Copper and Iron Ore business
and rupee depreciation.
EBITDA for the year was ` 36,455 crore, 3% higher Y-O-Y.
This was mainly due to softening of input commodity prices
coupled with strategic cost savings, one time arbitration award
in Oil & Gas business and rupee depreciation partially offset by
slip in commodity prices primarily of aluminium, zinc and brent
and strategic hedging gain recognised in previous year.
We maintained a robust adjusted EBITDA margin1 of 30% for
the year (FY 2022-23: 28%)
1. Excludes custom smelting at copper business.
Depreciation and Amortisation
Depreciation for the year was ` 10,723 crore compared
to ` 10,555 crore in FY 2022-23, higher by 2%, primarily
due to increase in ore production at Zinc India and higher
capitalisation at Aluminium business.
Net Interest
The blended cost of borrowings was 9.65% for FY 2023-24
compared to 7.8% in FY 2022-23.
Finance cost for FY 2023-24 was ` 9,465 crore, 52% higher
compared to ` 6,225 crore in FY 2022-23 mainly on account
of increase in average borrowings and cost of borrowings.
Investment income for FY 2023-24 stood at ` 2,341 crore,
18% lower compared to ` 2,851 crore in FY 2022-23. This
was mainly due to decrease in average investments partly
offset by mark to market movement.
Exceptional Items
The exceptional items for FY 2023-24 was at ` 2,803 crore,
mainly on account of impairment reversal in Oil & Gas,
foreign currency translation gain on redemption of optionally
convertible redeemable preference share and liability for
capital creditors written back in Power segment partly offset
by impairment in Copper, Aluminium and Zinc International.
[for more information, refer note [34] set out in P&L notes of
the financial statement on exceptional items].
Taxation
Tax expense for FY 2023-24 stood at ` 12,826 crore
(FY 2022-23: ` 5,770 crore). The normalised ETR is 36% as
compared to 30% in FY 2022-23 due to change in profit mix
and reversal of deferred tax assets.
Attributable profit after tax (before exceptional items)
Attributable PAT before exceptional items was ` 7,956 crore
in FY 2023-24 compared to ` 10,521 crore in FY 2022-23.
Earnings per share
Earnings per share before exceptional items for FY 2023-24
was ` 21.40 per share as compared to ` 28.36 per share in
FY 2022-23.
Dividend
Board has declared total dividend of ` 29.50 per share during
the reporting period.
Shareholders Fund
Total shareholders fund as on 31 March 2024 aggregated to
` 30,722 crore as compared to ` 39,423 crore as of 31 March
2023. This was primarily driven by net profit attributable to
equity holders earned, partially offset by dividend paid during
the reporting period.
Net fixed assets
The net fixed assets as on 31 March 2024 were ` 1,21,852
crore. This comprises ` 20,331 crore as capital
work-in-progress.
Balance Sheet
Our financial position remains strong with cash and liquid
investments of ` 15,421 crore.
The Company follows a Board-approved investment policy
and invests in high quality debt instruments with mutual
funds, bonds, and fixed deposits with banks.
Gross debt as on 31 March 2024 was ` 71,759 crore, an
increase of ` 5,577 crore since 31 March 2023. This was
mainly due to increase of debt at THL Zinc Ventures,
Meenakshi Energy and Balco partially offset by reduction of
debt at HZL and CIHL.
Gross Debt comprises term debt of c. ` 69,062 crore, working
capital loan of c. ` 1,159 crore and short-term borrowing of
c. ` 1,538 crore. The loan in ` currency is 82% and balance
18% in foreign currency. Average debt maturity of term debt is
~c. 3 years as of 31 March 2024.
164
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
165
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
OPERATIONAL REVIEW
ZINC INDIA
The year in brief
Zinc India is in first decile of the global zinc mining cost curve. It achieved highest ever
mined metal production of 1,079 kt, increased by 2% Y-O-Y on account of improved
mined metal grades and recorded 3rd largest silver production globally at 746 mt grew
by 5% Y-O-Y in line with management’s operational and financial strategy.
Best-ever mined metal production
1,079 kt
Highest-ever refined
1,033 kt
Highest-ever silver production
746 tonnes
ESG Update
Occupational health and 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 the
employees entering our premises. Setting a milestone in
FY 2023-24, in-line with our commitment to ‘Zero Harm’ we
have achieved zero fatalities in this financial year.
LTIFR for the year was 0.88 as compared to 0.70 in
FY 2022‑23.
To avoid fatalities and catastrophic incidents in the Company,
‘Vihan’: a critical risk management (CRM) initiative was
launched in FY 2022-23 to improve managerial control over
rare but potentially catastrophic events by focussing on the
critical controls. Through the initiative, we have reinforced the
focus upon seven more risks in FY 2023-24.
In alignment with our vision of zero-harm, Hindustan
Zinc Limited introduced 'SURAKSHA KAVACH' phase I
of fatality prevention controls initiative for underground
mining operations which can proactively address potential
risks associated with activities conducted at our sites,
encompassing 25 diverse activities, both routine and
non-routine, for underground mining operations in Phase I.
It outlines clear NO-GO criteria and critical checks that
must be conducted by our statutory supervisors and
competent personnel.
During the reporting period, safety pause was conducted
across all our operational units under the theme ‘stop work if
it’s not safe’. During this connect, all recent safety incidents
that had occurred across the Group were discussed and
key learnings were shared. The programme was organised
by business partners in all the three shifts, including the
night shift.
In line with our vision of ‘zero-harm’ and to prevent
reoccurrence of similar fatalities within the Group, we have
launched infrastructure Inframatrix across Hindustan Zinc
for 9 top risks that exist in our business. It helps to eliminate
the probability of occurrence of fatalities for the identified
critical risks in the business by improving the infrastructure
of various risks.
A 10-day capacity-building training programme on disaster
management was conducted by the National Disaster
Response Force (NDRF) emergency response at Dariba
Smelting Complex (DSC). The training covered various
aspects including medical first response, collapsed structure
search and rescue, fire management, and chemical and gas
disaster management emergencies.
To further enhance the safety of our assets and facilities,
Hindustan Zinc established the 'Structure Integrity
Management' community. This community is dedicated
to predictive assessment, corrosion mapping, and timely
rectification of old, damaged, and corroded structures within
the plant, ensuring the safety and reliability of our operations.
For demonstrating a higher degree of safety, we have been
awarded with below awards:
Highly prestigious International Safety Awards by British
Safety Council in the year 2024.
Zinc Smelter Debari and Zawar group of mines have
been awarded in Distinction Category, Chanderiya Lead
Zinc smelter, Rajpura Dariba projects and DSC in Merit
Category and Rampura Agucha Mine, Sindesar Khurd
Mine and Rajpura Dariba in pass category.
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DSC was also honoured with platinum in metal and mining
sector at Apex India Occupational Health and Safety
Awards 2023.
Environment
Hindustan Zinc has received validation on its near-term
and net-zero targets by the Science Based Targets initiative
(SBTi). Our targets include a commitment to reduce 50% of
absolute scope 1 and 2 GHG emissions and further reduction
of 25% of absolute scope 3 GHG emissions by FY 2029‑30
from the base year FY 2019-20 and achieving net-zero
emissions across the value chain by FY 2049-50. These
target ambitions have been approved by the SBTi in line with
1.5°C trajectory. We also became the only company in India
to be shortlisted for setting Science Based Targets for Nature
(SBTN) based on which we will set targets against freshwater
and land.
In FY 2022-23, we signed renewable energy supply
agreement of 450 MW round-the-clock renewable energy
(RE-RTC), the project is progressing well and the Company is
expected to start receiving renewable energy from April 2024.
This 450 MW RE-RTC will help us reduce our GHG emissions
significantly by 2.7 million tCO2e per annum.
We have deployed 2nd BEV in our underground operations
at Sindesar Khurd Mine. We have taken a significant leap
towards sustainable logistics by signing an agreement which
marked the deployment of 10 EV Trucks, each boasting a
capacity of 55 mt, helping in interunit transport of goods and
reduction of Scope 3 emissions.
Hindustan Zinc has led by example by inducting an LNG
powered truck for upstream and downstream transportation
which shall reduce GHG emissions. With their deployment,
we will reduce our carbon footprint by 30% in comparison
to traditional diesel vehicles, thereby reducing Scope
3 emissions.
The Company is also working along with International
Zinc Association (IZA) and its climate action taskforce for
standardisation of Scope 3 emissions guidelines across the
zinc sector.
The Company has inaugurated a 4,000 KLD zero liquid
discharge (ZLD) plant phase 1 at Zawar Mines, which utilises
advanced technology to help in water conservation. The plant
has resulted in reduction of freshwater dependency, aligning
with the vision of becoming 5 times water positive by 2025.
Dry tailing plant at Rajpura Dariba mine is in progress and
will result in significant amount of water recovery from
the tailings.
The 3-year engagement with International Union for
Conservation of Nature (IUCN) is in progress with 3rd season
assessment completed. Under this, we have prepared an
integrated biodiversity assessment tool (IBAT) report for
all Rajasthan-based locations. Site visit by IUCN team
members was done for three seasons. These studies will
help the Company prepare a strategy to achieve ‘no net loss’
towards biodiversity.
First fuming furnace commissioning was completed at
Chanderiya Lead Zinc Smelter (CLZS) which will help us in
improving metal recovery and reducing the generation of
jarosite waste.
As a significant achievement in our pursuit of reducing waste
by improving efficiency, Hindustan Zinc received two Indian
patents titled “Method for production of lead by performing
dross removal procedures” and “Method for production of
zinc by utilising lead plant slag”.
We organised a series of training sessions called
"Wednesday for Transition", which were designed to
provide suppliers with essential knowledge on ESG
(Environmental, Social, and Governance) topics.
Consent to Establish was granted for PAP (Phosphoric
Acid Plant) in March 2024 by State Pollution Control Board.
The project includes the establishment of PAP plant with
a capacity 240 KTPA inside CLZS complex based on
Hemidihydrate (HDH) technology.
Environment clearance was granted for CLZS expansion
project in December 2023 by the Ministry of Environment,
Forest, and Climate Change ((MoEF and CC). The project
includes expansion of pyro metallurgical smelter unit and
other debottlenecking projects in CLZS.
Our sustainability-related activities received several
endorsements during the reporting period:
Hindustan Zinc ranked #1 globally at S&P Global
Corporate Sustainability Assessment score in metal and
mining sector. Score improved from 80 last year to 85
this year
Included in Sustainability Yearbook 2024 amongst the
top 1% most sustainable organisations globally
Climate Action Programme (CAP) 2.0° - Oriented Award
in the Energy, Mining and Heavy Manufacturing Sector
Hindustan Zinc selected as Leadership band A- listed
company by CDP in “Climate Change“ and “Water
Security “in CDP 2023
Greenco Rating Award to Rampura Agucha Mine and
Zawar Mines (Silver Rating)
Zawar Mines was announced winner for CII best
practices award for its dry tailing plant and CII National
Awards in Innovation Project category for Environmental
Best Practice
Production performance
Production (kt)
FY
2023-24
FY
2022-23
%
Change
Total mined metal
1,079
1,062
2%
Refinery metal production
1,033
1,032
-
Refined zinc – integrated
817
821
-
Refined lead – integrated1
216
211
3%
Production – silver (in tonnes)2
746
714
5%
1. Excluding captive consumption of 7,622 tonnes in FY 2023-24
vs. 7,912 tonnes in FY 2022-23.
2. Excluding captive consumption of 39.0 tonnes in FY 2023-24
vs. 41.4 tonnes in FY 2022-23.
Operations
FY 2023-24 recorded the best-ever Mined Metal production
of 1,079 kt compared to 1,062 kt in the prior year driven
by improved mined metal grades. For the full year, ore
production was lower by 1% Y-O-Y to 16.52 million tonnes on
account of lower ore production at Zawar, Kayad and Rajpura
dariba mine.
Silver recorded the highest volume in FY 2023-24 in line with
management’s operational & financial strategy, at 24.0 moz up
5% Y-O-Y. Refined lead production was at 216 kt, up 3% Y-O-Y.
Prices
Particulars
FY
2023-24
FY
2022-23
%
Change
Average zinc LME cash settlement
prices US$ per tonne
2,475
3,319
(25%)
Average lead LME cash settlement
prices US$ per tonne
2,122
2,101
1%
Average silver prices US$/ounce
23.55
21.37
10%
In CY 2023, zinc price lost its shine as macro headwinds
deterred investor sentiments, and unsustainable metal
surpluses got piled up. Zinc LME ended FY 2023-24 at
2,391 US$/t which is 17.8% lower than 31 March 2023.
At supply level, the refined zinc production increased by 1.5%
to 13.8 million tonnes in CY 2023.
However, with expectations of interest rate cuts by the US
Fed and geopolitical tensions in the Middle East, commodity
prices went on a rally starting April 2024, with silver touching
its highest in ` terms. Chinese manufacturing PMI has also
increased from 50.9 in February to 51.1 in March, entering
into expansion zone for the first time since September 2023.
Zinc Demand–Supply
Zinc Global Balance In kt
CY2022
CY2023
CY2024 E
Mine Production
12,843
12,497
12,567
Smelter Production
13,569
13,779
13,640
Consumption
13,641
13,434
13,779
E: Estimated
Source: Wood Mackenzie, March STO
The global refined zinc demand contracted by 1.5% to
13.4 million tonnes in CY 2023, largely due to a fall in Chinese,
USA, EU regions. An increase in supply created a surplus in
the market resulting to an increase in the warehouse (LME
& SHFE) stocks by 386% (50 kt to 243 kt) and consequent
increase in pressure on metal premiums on a spot basis.
The market anticipated that the removal of COVID restrictions
in 2023 would signal a strong rebound in the Chinese
economy and zinc demand. This optimism, however, turned
out to be misguided, as the recovery has been stifled by
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Integrated Report and Annual Accounts 2023-24
the structural slump in the real estate industry as well as
exceptionally low levels of confidence among consumers
and businesses. Therefore, the combination of Government-
backed stimulus programmes and strong export demand
for Chinese-made galvanised sheets, white goods, and
automobiles drove the zinc consumption in 2023.
European continent's zinc consumption also undergone a
structural shift due to permanent capacity closures caused
by rising energy prices, even though they have decreased.
This is especially the case in Germany, where the effects of
increasing energy costs have been most pronounced. US
economy went through demand slump in 2023 on account of
rising interest rates, rising unemployment and couple of other
macroeconomic factors.
In terms of demand, India has surpassed the globe. The
Indian economic environment has remained optimistic. The
same was reflected by the S&P Global Manufacturing PMI
which stood at 59.2 in March 2024 as compared to 56.4 in
March 2023, reflecting expansion in the manufacturing
sector. This highlighted 31 successive monthly improvement
in operating conditions. The domestic production of finished
steel went up by 13.2% to 118.947 million tonnes from April
2023 to January 2024 (P). Consumption in domestic market
during the same period stood at 112.5 million tonnes, up by
14.5%. The total net finished steel exports till Jan’24 stood at
5.5 million tonnes, up by 3.6%.
Unit costs
Particulars
FY
2023-24
FY
2022-23
% Change
Unit costs (US$ per tonne)
Zinc (including royalty)
1,450
1,707
(15%)
Zinc (excluding royalty)
1,117
1,257
(11%)
For the full year, Zinc COP excluding royalty was
US$ 1,117 per tonne, down by 11% Y-O-Y (8% lower in
` terms). The reduction in COP has been achieved mainly due
to lower coal and input commodity prices, better grades &
better linkage coal availability.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
% Change
Revenue
27,925
33,120
(16%)
EBITDA
13,562
17,474
(22%)
EBITDA margin (%)
49%
53%
-
Revenue from operations for the year was ` 27,925 crore,
degrew by 16% Y-O-Y, primarily on account of lower zinc LME
prices and zinc metal volume, partially offset by favourable
exchange rates, higher silver and lead prices and volume.
EBITDA for FY 2023-24 was at ` 13,562 crore, down by 22%
Y-O-Y in line with the lower revenues.
Projects
As Zinc India advances in the journey of 1.25 MTPA
metal in concentrate (MIC) expansion, several
projects have been undertaken throughout the year:
Strategic Priorities and Outlook
Our primary focus remains on enhancing
overall output, cost efficiency of our operations,
improving cost efficiency in our operations,
maintaining disciplined capital expenditure, and
ensuring sustainable operations. Despite the
current economic uncertainty, our goals over the
medium term remain 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 within the range of US$ 1,050-
US$ 1,100 per tonne through efficient ore hauling, higher
volume and 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
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 programme 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 2023-24 stood at 175.1 million tonnes (net of depletion
of 16.5 million tonnes during FY 2023-24) and exclusive
Mineral Resources totalled 281.2 million tonnes. Total
contained metal in Ore Reserves is estimated at 9.9 million
tonnes of zinc, 2.8 million tonnes of lead and 312.2 million
ounces of silver. The Mineral Resource contains
approximately 12.7 million tonnes of zinc, 5.5 million tonnes
of lead and 542.1 million ounces of silver. At current mining
rates, the R&R underpins metal production for more than
25 years.
Rajpura Dariba mill revamping project
for improved recovery of zinc, lead,
and silver has been commissioned
in August’23 and is currently under
ramp‑up.
To further enhance metal volume,
160 KTPA roaster project at Debari is
under installation and has achieved
43% progress with final commissioning
being targeted by fourth quarter of
FY 2024-25.
The project of Hindustan Zinc Alloys
Private Limited has been commissioned
in the third quarter of FY 2023-24 and
complete ramp‑up is under progress.
Further, the 160 KTPA fumer plant has
also been commissioned during the
second quarter of FY 2023-24 and full
ramp‑up is in progress.
Fertiliser plant of 5.1 lakh MTPA in
Chanderiya work is under progress and
the project is targeted to be completed
by the second quarter of FY 2025-26.
Company has also received requisite
regulatory approvals for Bamnia
Kalan Mines and is in the process of
finalising the business partner to start
the site activities.
For next phase of expansion of mines
and smelters, preliminary studies are
under progress and proposals will be
finalised by the first quarter of
FY 2024-25.
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Integrated Report and Annual Accounts 2023-24
ZINC INTERNATIONAL
The year in brief
During FY 2023-24, Zinc International recorded
annual production of 208 kt. The significant
decline in production for the year was mainly
due to ore availability challenges, significantly
lower throughput, and lower zinc and lead
grades at both units.
Black Mountain production for FY 2023-24
stands at 61 kt down by 6% Y-O-Y, due to lower
zinc and lead head grades partly offset by higher
tonnes treated and better recoveries.
Gamsberg production for FY 2023-24 is down
29% Y-O-Y due to lower mining volumes driven
by West pit geotechnical issue and lower grades.
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.
MIC production
208 kt
ESG Update
Occupational health and safety
At Vedanta Zinc International (VZI), we prioritise the health
and safety of our employees and stakeholders, and we
remain committed to timely and transparent communication
with all parties involved.
Airborne particulate management remains a key focus
in reducing lead and silica dust exposures of employees
(Exposure Reduction to Carcinogenic). Zero new HIV and
any other Occupational Related Diseases for the year. VZI
had 8 blood lead withdrawals for FY 2023-24 (a reduction
from 17 in the previous year), against more stringent
limits than required by law. We have strengthened our
Employee Wellness Programme through weekly training
and empowerment sessions presented by our Wellness
Coordinator at our training centres as well as focussing on
the increased participation of employees and communities
in VCT for Aids / HIV, blood donation and wellness. Upgrade
of BMC Occupational Health & Primary Health Care facility is
also underway to improve space and flow within the facility.
VZI has also embarked on a real-time monitoring strategy
and additional controls at source to reduce and eliminate
exposures to both silica and lead.
The VZI LTIFR for FY 2023-24 YTD regressed from 0.75 in
FY 2022-23 to 1.26 in FY 2023-24. The TRIFR remained
within the guidance of 3 per million-man hours worked in
FY 2023-24 at 3.6. The regression in LTIFR was attributed to
low energy types of injuries such as slipping and falling as
well as manual handling of material. Short-term awareness
campaigns such as “Season of Exceptional Care” were
implemented to ensure that employees remain focussed
whilst at work and return home to their families safe and
healthy every day.
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) for declaration as
part of the Gamsberg Nature Reserve (Protected Area under
the National Environmental Management Protected Areas
Act, 2003 (Act No.57 of 2003). Once declared, the property
will be transferred to the Department of Public Works.
This is a requirement of Clause 6 of the Biodiversity Offset
Agreement (BOA).
During the reporting period, Gamsberg successfully renewed
the Salvage yard waste licence that expired on 31 December
2023 and will be valid for the next 10 years. Gamsberg and
Black Mountain Mine further maintained its ISO 14001:2015
certification. The Project offices achieved a Green
Building Certification.
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Total production (kt)
208
273
(24%)
Production – mined metal (kt)
BMM
61
65
(6%)
Gamsberg
147
208
(29%)
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173
Management Discussion
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VEDANTA LIMITED
Operations
Total production for the year was 208 kt, down by 24%
Y-O-Y. This was primarily due to lower tonnes treated and
lower grades.
At BMM, production for the year 61 kt, down by 6% Y-O-Y.
This was mainly due to lower lead grades (2.6% vs 3.0%)
and lower zinc grades (1.6% vs 1.8%) offset by 0.1MT higher
throughput (1.8 mt vs 1.7 mt), higher zinc recoveries (78.3%
vs 71.9%) and higher lead recoveries (85.4% vs 82.8%).
At Gamsberg, production for the year was at 147 kt, down by
29% Y-O-Y. The low production at Gamsberg is attributable
to mining underperformance resulting in lower ore availability,
and lower zinc grades (5.6% vs 6.5%).
At Skorpion Zinc engagement with technical experts to
explore opportunities of safely extracting the remaining ore
is ongoing. The business is currently evaluating options to
restart mining.
Unit costs
Production
FY
2023-24
FY
2022-23
%
Change
Overall Zinc COP including TcRc
(US$/t)
1,488
1,577
(6%)
Overall Zinc COP including TcRc for the year was US$ 1,488
per tonne, down by 6% This was mainly driven by lower
mining and other costs, lower treatment and refining charges,
higher production of copper, local currency depreciation
against the US$ partially offset by lower production.
Projects
Refinery Conversion
The Skorpion Refinery Conversion project was at Ready-
to-order stage, post completion of FEED, feasibility study,
tendering activities, techno-commercial adjudication,
contract finalisation, and now currently on hold pending
finalisation of power tariff.
The application for environmental clearance renewal
certificate for the refinery conversion project has been
submitted and waiting for approval. Confirmation on
agreed power tariff is awaited to take the final decision
and start the project execution on ground.
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 ore. Owner’s Engineering consultant has been
appointed for conducting pre-feasibility studies, executing
the basic engineering design, detailed engineering review,
quality assurance and site construction management.
All activities related to tendering, techno-commercial
adjudication, contract finalisation have been completed.
All Major Long-Lead Free Issue Materials {Ball and
Strategic Priorities and Outlook
Zinc International continues to remain focussed to improve its Y-O-Y 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 Gamsberg mining
operations 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 1.7 mt to 2.0 mt. Skorpion is expected to remain in Care and
Maintenance while management is assessing feasible and 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$ 1,200 per tonne.
Core Growth strategic priorities include the following:
Ramp‑up of Gamsberg Phase 1 Mining up to 9 million tonnes per month to ensure adequate ore availability for the plant
Completion of construction activities of Gamsberg Phase 2 project in the first half of FY 2024-25
Continue to improvise Business case of Skorpion Refinery Conversion Project and Gamsberg Smelter Project through
Government support, Capex and Opex reduction
Magnetite project (waste to value) reinitiated with target completion by the first half of FY 2024-25
Sag Mill (CITIC), Crusher, Floatation, Filter Presses and
Thickeners Package (MO)} Orders placed. Major FIM
supplies such as Thickeners, Mills, Transformers have
been delivered to Project Site. Project is targeted to be
completed by H1 FY 2024-25
The status on the project is as follows:
Overall progress is at 52.6%
Engineering and procurement are 99.6% and 94%
completed respectively
Construction progress is at 27%
Black Mountain Iron Ore project
This is a project to recover iron ore (magnetite) from
the BMM fresh tailings. Detailed engineering and
procurement have been completed and construction
progress is at 76%. The project was on hold due to EPC
Business partner (LeadEPC) going into Business Rescue
(BR).
LeadEPC came out of BR in the third quarter of FY 2023-
24. Team started mobilisation in February 2023-24, and
have planned to complete the project by the second
quarter of FY 2024-25. All the environmental approvals
are in place to process fresh tailings and extract Iron Ore.
Financial performance
(` crore, unless stated)
Production
FY
2023-24
FY
2022-23
%
Change
Revenue
3,556
5,209
(32%)
EBITDA
693
1,934
(64%)
EBITDA margin
19%
37%
Revenue for the year was ` 3,556 crore, down by 32%,
mainly due to significantly lower production volumes, and
lower LME prices offset by lower treatment charges.
EBITDA for the year was ` 693 crore, down by 64% mainly
due to lower production volumes, and lower LME prices
partly offset by impact of exchange rate movement on cost,
lower mining cost and lower treatment charges.
Exploration
1% increase in resources from 27.21 mt to 27.61 mt
metal and 1% reduction in reserve metal tonnes from
7.66 mt to 7.20 mt
Total R&R for VZI increased from 658 mt to 662 mt of
ore, while metal decreased from 34.86 mt to 34.80 mt
(0.2% decrease in total metal)
Reduction reserve largely attributed mining depletions
and the slight increase in resources due to addition
of metal tonnes at Broken Hill which was offset by
an increase in mining costs which impacted the
cut‑offs used
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Integrated Report and Annual Accounts 2023-24
OIL AND GAS
The year in brief
During FY 2023-24, Oil and Gas business delivered gross operated production of
128 Kboepd, down by 11% Y-O-Y, 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, Aishwariya, Bhagyam and Raageshwari Deep Gas fields. OALP
assets were supported by ramp‑up of volumes from Jaya discovery.
Average gross operated production
128 Kboepd
ESG Update
Occupational health and safety
There were two lost time injuries (LTIs) in FY 2023-24.
Frequency rate stood at 0.06 per million-man hours
(FY 2022-23: 0.03 per million-man hours).
Our focus remains on strengthening our safety philosophy
and management systems. We were recognised with
awards conferred by external bodies:
RJ North SBU recognised with British Safety Council
International Safety Award (ISA), UK 2023
RJ North SBU awarded with ‘Royal Society for
Prevention of Accidents’ Gold award for Health and
Safety Management 2023
Cairn received ‘Sustainable Corporate of the Year
Award 2023’ by Frost and Sullivan, TERI under
Sustainability 4.0 Award
Platinum award under mining sector at 10th FICCI
Awards for Excellence in Safety Systems 2023 and RJ
North SBU received 2nd CII award for ‘Best Practices in
Waste Management’ in Northern Region, CII National
award for ‘Excellence in Water Management’ 2023
Golden Peacock Award 2023' for Excellence in Health
and Safety for RJ South SBU
Cairn Oil and Gas has taken various initiatives:
Implemented uniform HSE Governance structure
and critical risk management system for
fatal risks
Process Safety management gap assessment
exercise across assets
Digital initiatives include Artificial Intelligence-
based safety surveillance, an Occupational Health
MIS portal, a Digital Tanker inspection system, an
E-dispensation management system, an E-HSE
legal permit monitoring system, and a Static
discharge palm plate
Highlights for FY 2023-24 as follows:
Suvali Site has been certified as ‘Net Water
Positive Certification’ (NWPI) by TUV SUD with
NPWI index of 1.14
Constructed 69 community-based rainwater
harvesting structure in Barmer having RWH
potential of 0.78 million KL annually
Re-use of boiler blow down water for injector at
MPT of 35,000 KL annually
Environment
Our Oil and Gas business is committed to protect the
environment, minimise resource consumption and drive
towards our goal of ‘zero harm, zero waste, zero discharge’.
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Integrated Report and Annual Accounts 2023-24
Production performance
Particulars
Unit
FY
2023-24
FY
2022-23
% change
Gross operated
production
Kboepd
127.5
142.6
-11%
Rajasthan
Kboepd
106.5
119.9
-11%
Ravva
Kboepd
10.8
11.8
-8%
Cambay
Kboepd
8.9
10.8
-17%
OALP
Kboepd
1.4
0.1
-
Oil
Kboepd
104.0
118.6
-12%
Gas
Mmscfd
141
144
-2%
Net production –
working interest*
Kboepd
82.5
91.5
-10%
Oil
Kboepd
66.8
76.1
-12%
Gas
Mmscfd
94
92
2%
Gross operated
production
Mmboe
46.7
52.1
-10%
Net production –
working interest
Mmboe
30.2
33.4
-10%
* Includes net production of 556 boepd in FY 2023-24 and 450 boepd
in FY 2022-23 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 Y-O-Y at 127.5 Kboepd. The Company’s
production from the Rajasthan block was 106.5 Kboepd,
11% lower Y-O-Y and from the offshore assets, was at
19.7 Kboepd, 13% lower Y-O-Y. The natural decline has been
partially offset by infill wells brought online across all assets.
Block-wise production details as follows:
Rajasthan block
Gross production from the Rajasthan block averaged
106.5 Kboepd, 11% lower Y-O-Y. The natural decline in the
MBA fields has been partially offset by infill wells brought
online in Mangala, Aishwariya, Bhagyam, ABH and RDG fields.
Gas production from Raageshwari Deep Gas (RDG)
averaged 140 million standard cubic feet per day (mmscfd)
in FY 2023‑24, with gas sales, post captive consumption, at
116 mmscfd.
The appeal against the Division Bench order (additional 10%
profit sharing from 2020 onwards) was filed by us before the
Supreme Court in June 2021. The matter was part heard on
16 February 2023 and mentioned by the Company several
times for early listing. We await the next date of hearing.
The Government of India (GoI), acting through the Directorate
General of Hydrocarbons (DGH), had raised demand up to
14 May 2020 for Government’s additional share of Profit oil
based on its computation of disallowance of cost incurred
over retrospective re-allocation of certain common costs
between Development Areas (DAs) of Rajasthan Block and
certain other matters aggregating to US$ 1,162 million
applicable interest thereon representing share of Vedanta
Limited and its subsidiary.
We had disputed the aforesaid demand and invoked
arbitration as per the provisions of the Production Sharing
Contract. The Company had received the Final Partial
Award dated 22 August 2023 from the Arbitration Tribunal
('the Tribunal') as amended by orders dated 15 November
2023 and 08 December 2023 ("the Award"), dismissing the
Government’s contention of the additional Profit Petroleum in
relation to allocation of common development costs across
Development Areas and certain other matters in accordance
with terms of the Production Sharing Contract for Rajasthan
Block, while disallowing some matters. Further, Tribunal has
decided that the Company is allowed to claim cost recovery
of exploration cost for the purpose of computation of
Profit Oil.
Pursuant to the award, the Company has recognised a
benefit of US$ 578 million in revenue from operations.
The Gol had sought an additional award or interpretation/
clarification on certain matters decided by the Tribunal under
the Indian Arbitration and Conciliation Act, 1996 ("the Act")
("Gol Applications"), The Tribunal vide its orders dated 15
November 2023 and 08 December 2023 has dismissed Gol
Applications, in favour of the Company.
GoI had filed interim relief application on 03 February 2024
seeking stay on further recovery by Company and return
of amounts already recovered. The matter was heard on
26 March 2024 and we await order of Tribunal’s order in
this regard.
GoI on 07 March 2024 filed application before Delhi High
Court challenging the Final Partial Award and matter was
heard on 14 March 2024. No stay was granted and the
petition was not admitted. The next date of hearing is 22 April
2024. The Company is of the view that there is no merit in
the challenge filed by GoI, as the Court cannot re-appreciate
the evidence in Section 34 appeal. The interpretation by the
Tribunal is plausible and therefore no challenge is merited.
The Group has adjusted the liability as on 31 March 2024 of
US$ 233 million against the aforesaid benefits recognised per
the Arbitration award.
Ravva block
The Ravva block produced at an average rate of 10.8 Kboepd,
lower by 8% Y-O-Y, owing to natural field decline.
Cambay block
The Cambay block produced at an average rate of
8.9 Kboepd, lower by 17% Y-O-Y, owing to natural
field decline.
Prices
Production
FY
2023-24
FY
2022-23
%
Change
Average Brent prices –US$/barrel
83.1
96.2
(14%)
Crude oil price averaged US$ 83.1 per barrel in FY 2023-24
representing decrease from US$ 96.2 per barrel. The decline
is largely attributed to ongoing geopolitical risk, concerns
about demand in major economies like the US and China,
monetary tightening by major banks and expectations of
global oil production surpassing consumption in 2024.
Previous period was influenced by Russia-Ukraine war which
resulted in rally in prices.
Early in the year, prices fluctuated due to supply and
demand factors. On the supply side, limited availability due
to increase in U.S. crude and gasoline inventories, concerns
about production cuts, sanctions on Russia contributed to
volatility. Additionally, demand was influenced by structural
uncertainties, such as looming possibility of U.S. debt default
potential and a slowdown in China’s economy.
However, in September and October optimism emerged as
expectations grew that central banks were approaching
the end of their tightening cycles. Additionally, the decline
of US Dollar and anticipated economic stimulus in China
added to the positive sentiments. Firm demand for crude
in the spot market, rising global refinery intakes, stronger
refining margins and a large draw in US crude stocks boosted
the prices.
Despite these developments, the oil market remains
shrouded in uncertainty and susceptible to ongoing
fluctuations due geopolitical risk surrounding the Middle East
and Russia, disruptions in maritime trade flows, persistent
worries about the demand outlook in the US and China,
compounded by global petroleum reserves and unexpected
supply disruptions in several regions.
Biodiversity/wildlife conservation initiatives
Plantation work completed in 400 hectares
with 2 lakh saplings in Barmer district.
60 hectares mangroves planted for carbon
offset and biodiversity in Surat Coastal area, over
13 hectares in Ravva terminal and MoU signed
with Government of Gujarat for plantation of
mangroves on 130 hectares in the coast of Surat
~0.27 mn saplings sourced from Rajasthan State
Forest Department and distributed to Border
Security Force (BSF), Army and local farmers
Planted 5,000 saplings in Bhogat terminal along
with Gujarat Forest Department.
Reduction in GHG emission
Received certification of Energy Management
System (ISO 50001:2018) for Ravva and Suvali
Flare Gas utilisation from KW-02 through gas
cascading and bottling. (Annual GHG reduction
potential ~6,000 tonnes of CO2e/annum)
Commissioned motor-driven power fluid pump at
MPT to replace the stream-driven pump. (Annual
GHG reduction potential of ~86,000 tonnes of
CO2e/annum)
Solar rooftop installed on 16 AGIs (above ground
installations) for pipeline operations (Annual GHG
reduction potential of 300 tonnes of CO2e/annum)
Installation of 126 KWP at Raag Gas WPs (Annual
GHG reduction potential of ~157 tonnes of CO2e/
annum)
Commissioned 40 KWP Solar Plant at Cambay
asset (Annual GHG reduction potential of
~30 tonnes of CO2e/annum)
Introduced 15 new Electric Vehicles at RJ and 2 in
Ravva for internal commuting
Hydrocarbon recovery through the processing
of skimmed oil amounted to approximately
43,253 barrels
Suvali has been certified by TUV SUD towards
‘Zero Waste to Landfill’
178
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STATUTORY REPORTS
FINANCIAL STATEMENT
179
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Growth Projects Development
The Oil and Gas business has a robust portfolio of infill
development and enhanced oil recovery projects to
add volumes in the near term and manage natural field
decline. Some of key projects are:
Infill Projects
Mangala
Based on the success of the infill drilling campaigns
in Mangala field, opportunities to further accelerate
production by drilling and hook up of 18 wells
(15 producers and 3 injectors) in FM1 sands were
identified. The project also entails conversion of 6 wells.
As of 31 March 2024, 8 wells have been drilled, of which
6 wells are online.
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
9 infill wells in FB3 layers and three horizontal wells in
the bio-degraded zone.
As of 31 March 2024, project is completed, and all wells
are online.
Aishwarya
Based on the success of the polymer injection in Lower
Fatehgarh (LF) sands of Aishwarya 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 2024, 24 wells have been drilled, of which
21 wells are online.
Tight Oil (ABH)
Aishwarya Barmer hill infill drilling programme
established confidence in reservoir understanding of
ABH. Based on its success, drilling of 14 additional wells
were conceptualised.
As of 31 March 2024, 8 wells have been drilled of which
all are online. The projects work on surface facilities are
currently in progress.
Tight Gas (RDG)
In order to realise the full potential of the gas reservoir, an
infill drilling campaign of 25 wells was executed. Project
has been completed during second quarter of fiscal year
2024 and all wells are online.
To augment reserves and manage natural decline, we
commenced additional 8 infill wells drilling campaign
during fiscal year 2024. As of 31 March 2024, 6 well has
been drilled of which 3 wells are online.
Satellite Fields
In order to monetise the satellite fields, 14 wells
development campaign for 3 satellite fields (GSV,
Tukaram, Raag Oil) was conceptualised. Drilling was
completed during FY 2022-23 of which 9 wells are online
as on date.
Exploration and Appraisal
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.
During FY 2023-24, we drilled eight exploration/appraisal
wells [4 wells in Cambay Onshore (YME-1 Jaya Appraisal
and Jaya SW1, Jaya SW1-ST, and Jaya SW-3), 1 well in
Western Offshore (Dwarka 1) and 3 wells in Rajasthan
(Durga Lateral 1, and Durga Lateral 2 and Western Margin
GH-1A)].
Through exploration and appraisal successes
encountered in Cambay Onshore (Jaya) wells, we have
got approval for Field Development Plan (FDP) to produce
>3,000 boepd. This will be the first FDP in OALP regime,
among 144 blocks awarded under 8 OALP rounds by the
Government to various companies.
Seismic Acquisition activities are ongoing in the
North‑East and Cambay region.
Strategic Priorities and Outlook
Vedanta’s Oil and Gas business has a robust portfolio mix comprising exploration
prospects spread across basins in India, development projects in the prolific producing
blocks and stable operations which generate robust cash flows.
The key priority 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
Need Image
Financial performance
(` crore, unless stated)
Production
FY
2023-24
FY
2022-23
%
Change
Revenue
17,837
15,038
19%
EBITDA
9,777
7,782
26%
EBITDA margin
55%
52%
-
Revenue for the year was ` 17,837 crore (after profit
petroleum and royalty sharing with the Government of India),
up 19% Y-O-Y, as a result of favourable order received in
GoI Arbitration partially offset by fall in oil prices. EBITDA for
FY 2023-24 was at ` 9,777 crore, up by 26% Y-O-Y in line
with the higher revenues.
The Rajasthan operating cost for the year was US$ 14.5 per
barrel compared to US$ 14.2 per barrel in previous year,
primarily driven by lower production and increased well
interventions to manage natural field decline.
180
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STATUTORY REPORTS
FINANCIAL STATEMENT
181
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ALUMINIUM
The year in brief
With our continued focus on operational
excellence, improving asset reliability across
units and efficiency in procurement, we have
achieved highest ever annual cast metal
production of 2.37 million tonnes in FY 2023‑24,
up 3% Y-O-Y, and achieved hot metal cost of
US$ 1796/T, 23% lower Y-O-Y. We also produced
1.81 mt of calcined alumina, up 1% Y-O-Y.
In addition, as the first milestone in our
transformational capex programme, we
produced the first alumina from Train 1 of the
Lanjigarh refinery expansion project, as a step
towards becoming a fully vertically integrated
Aluminium producer.
Highest-ever aluminium production
2,370 kt
ESG Update
Occupational health and safety
We report with deep regret one fatality of business partner
employees during the reporting period 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.
This year, we experienced a total of 33 Lost Time Injuries
(LTIs) resulting in an LTIFR of 0.41 at our operations.
To advance the goal of Zero Harm in Safety, all our
units undertook a comprehensive programme of safety
measures to improve workplace conditions in terms of site
infrastructure, safety systems and safety culture. Noteworthy
infrastructural improvements include safer access pathways
for pedestrians to isolate them from vehicles across the
sites. Safety systems like introduction of Driver Management
Centre, monitoring of vehicle design and condition, and safe
driving parameters through smart cameras, speed detectors
and GPS-enabled Vehicle Tracking Systems. External
third-party training has been provided to 4,000 workers in
hazardous process training. Further, we have developed the
Enablon portal for timely identification and reporting of safety
hazards and rectification of the same.
All sites are 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.
For Occupational Health, our units celebrate Sankalp Day
every month with different themes. Various health awareness
campaigns have also been conducted, such as the "Beat
the Heat" campaign during summers, Pinkathon for breast
cancer awareness, non-invasive anaemia detection camps,
mass diabetic screening camps, and neglected tropical
disease campaigns. Additionally, three mandatory trainings
(Occupational Health and Industrial Hygiene, Ergonomics,
and CPR) are provided each month.
Environment
During the reporting period, Jharsuguda recycled 17% of
their water used, while BALCO and Lanjigarh recycled 13%
and 50% respectively. Our specific water consumption
at Jharsuguda was 0.20 m3/t, BALCO was 0.53 m3/t and
Lanjigarh specific water consumption was 2.09 m3/t.
In line with Vedanta’s de-carbonisation plan, we have
undertaken trials at Lanjigarh to co-fire biomass in the boiler,
with all defined safety measures, to reduce GHG emissions
of the power plant. Furthermore, Jharsuguda has deployed
27 Electric forklifts while BALCO and Lanjigarh have deployed
6 and 3 forklifts respectively, we have planned to shift to
100% EV light motor vehicles by FY 2029-30.
Under our Green product initiative, this year we produced
44 kt of Green Aluminium under the Restora brand name with
an immediate potential to produce up to 100 KTPA. Further,
our Restora Ultra brand, produced from Aluminium dross
generated from the operations, has one of the lowest carbon
footprints available on the market today.
In FY 2023-24, we reduced our GHG emission intensity by 2%
compared to the FY 2022-23 baseline. We have purchased
1,013 MU of Green Power and co-fired 13,811 tonnes
of Biomass.
Management of hazardous waste such as spent pot lining
(SPL), aluminium dross, and high-volume low-toxicity waste
such as fly ash and red mud are material waste management
issues facing the aluminium industry. During the reporting
period, our operations have utilised 103% of Ash and 98%
of Dross.
182
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
183
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Vedanta Aluminium has entered into a long-term partnership
with Dalmia Cements for gainful utilisation of industrial
by-products such as fly-ash and SPL waste to manufacture
‘green’ cement. This partnership demonstrates our
commitment to promote the circular economy and create
‘wealth from waste’. BALCO is engaged in back filling of fly
ash into coal mines which further supports our efforts for
sustainable management of ash from our operations and
achieve our ‘Zero Waste to Landfill’ objective.
Our R&D team, in collaboration with IIT Kharagpur, has
developed and patented a new technology for pre-processing
of bauxite prior to introduction to the Beyer circuit, which
will reduce red mud generation by about 30%. This will also
further enhance alumina recovery and broaden range of
acceptable bauxite specifications.
Production performance
Particulars
FY
2023-24
FY
2022-23
%
change
Calcined Alumina Production (kt)
Alumina – Lanjigarh
1,813
1,793
1%
Cast Aluminium Production (kt)
2,370
2,291
3%
Jharsuguda
1,784
1,721
4%
BALCO
586
570
3%
Alumina refinery: Lanjigarh
At Lanjigarh, calcined alumina production stands at
1.81 million tonnes, up 1% Y-O-Y.
Aluminium smelters
Achieved highest ever cast metal production of 2.37 million
tonnes in FY 2023-24, up 3% Y-O-Y, primarily due to
improved operational efficiency.
Coal Security
We continue to focus on the long-term security of coal
supply to our thermal power plants at competitive prices.
We have plans in place to operationalise our captive coal
blocks of Radhikapur (West) (6 MTPA) and Kuraloi (A)
North (8 MTPA) in FY 2024-25 and Ghogharpalli (20 mt)
in FY 2025-26. The Barra coal block is currently under
exploration. These captive mines along with 16.7 million
tonnes of long-term linkage will ensure 100% coal security
for our Aluminium business. We also intend to continue our
participation in linkage coal auctions to secure additional
coal at competitive rates.
Prices
Particulars
FY
2023-24
FY
2022-23
%
change
Average LME cash settlement
prices (US$ per tonne)
2,200
2,481
(11%)
In FY 2023-24, the aluminium market continued the
downward trend experienced in the fourth quarter of
FY 2022-23 with LME prices falling steadily to US$ 2,100/
tonne at the end of June 2023. The market was
significantly impacted by volatility in macroeconomic
environment during the reporting period amidst the
ongoing Russia-Ukraine war, European energy crisis,
and high inflation in the key markets. Prices remained
range‑bound at these levels through until late in the
calendar year where concerns about potential sanctions on
Russian metal caused a short-lived spike in prices, before
returning to US$ 2,200/tonne at the close.
Total global aluminium demand is expected to increase
at a CAGR of ~3% for the rest of this decade. Higher
growth rate is driven by the decarbonisation transition in
transportation, deployment of renewable power generation,
infrastructure development and growth in recyclable
packaging. Specifically, aluminium consumption from the
renewable energy and electric vehicle sectors is expected
to increase to 16 million tonnes by CY 2030.
The transportation sector should support modest growth
in domestic consumption, while the building & construction
sector will continue a downtrend trend. For the Rest of
World, CY 2024 is expected to witness modest demand
improvements as inflation rates start to decline and
monetary authorities around the world can start to reduce
interest rates. Indian domestic aluminium demand will
remain very robust driven by key consuming segments like
electronics and appliances as well as anticipated boom in
renewable, defence, and aerospace sectors.
Strategic Priorities and Outlook
Our strategic priorities remain
increasing production volume of aluminium
reducing and delinking production cost from
external volatility through achieving full backwards
vertical integration
maximising share of value-added products (VAP) in
our mix
Aluminium Volume:
BALCO is poised to add smelter capacity of 0.4 MTPA (to
achieve 1 MTPA total capacity) with first metal planned
by end of third quarter of FY 2024-25. Efforts continue
towards achieving higher operational performance along
with increased volume delivery through debottlenecking and
planning for future growth projects.
Backwards Vertical Integration:
The Lanjigarh expansion activities are in full swing, and we
achieved our first alumina production from Train-1 in March
2024 and efforts are in place to get first alumina production
from Train-2 by end of second quarter of FY 2024-25.
Activities are underway to finalise approvals, acquire land,
and instal necessary processing and logistics infrastructure
at Sijimali Bauxite Mines to enable us to secure first
production by second quarter of FY 2024-25. The future
ramp‑up will be instrumental in enabling us to meet the
requirement for 5 MTPA refinery operations from captive
domestic sources. Operationalisation of our captive coal
mines in the short to medium-term and improved linkage
materialisation will ease our dependence on relatively
higher‑cost spot market coal.
Increased VAP
Jharsuguda and BALCO are currently expanding their VAP
capacity from 1.1 MTPA to 1.6 MTPA and 0.4 MTPA to
1.0 MTPA respectively to secure enhanced product margins.
Other business priorities include:
Sustainability:
Safety and well-being of all our stakeholders, reduction of our
carbon footprint and increased production of Low Carbon
Green Aluminium (Restora, Restora Ultra), increased Diversity
of our Workforce, and promoting the Circular Economy.
Operational Excellence:
Continual improvement in operational parameters.
Asset Optimisation:
Achieving >100% capacity utilisation of assets through
implementation of our structured reliability and asset
management programme.
Quality:
Zero product defects and customer complaints.
Product Portfolio:
Improve VAP portfolio with focus on anticipating and meeting
the needs of sophisticated customers to enable better
price realisation.
Unit costs
(US$ per tonne)
Particulars
FY
2023-24
FY
2022-23
%
change
Alumina cost - Lanjigarh
325
364
(11%)
Aluminium COP
1,796
2,324
(23%)
Jharsuguda COP
1,761
2,291
(23%)
BALCO COP
1,904
2,424
(21%)
Cost of production (COP) of alumina for the year was US$
325 per tonne, down 11% Y-O-Y, majorly driven by softening
of caustic soda and coal prices.
Cost of production (COP) of hot metal was US$ 1,796 per
tonne down 23% Y-O-Y, primarily on account of improvement
in asset reliability and reduction in coal and CP coke prices.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
48,371
52,662
(8%)
EBITDA
9,657
5,775
67%
EBITDA margin
20%
11%
Revenue for the year was ` 48,371 crore, down by 8%, due
to slip in LME prices partially offset by increase in volume.
EBITDA for the year was ` 9,657 crore, up by 67% to majorly
driven by softening of input commodity prices along with
the improved operational performance partly offset by lower
LME prices.
184
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
185
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
POWER
The year in brief
Vedanta Power is on the brink of significant
expansion and operation of two new thermal
power projects—Meenakshi (1,000 MW) in Andhra
Pradesh and Athena (1,200 MW) in Chhattisgarh.
These ventures are slated to commence
operations in FY 2024-25 and FY 2025-
26 respectively. This expansion will bolster
Vedanta Power's total capacity to 4,780 MW,
encompassing its existing operational plants-
Talwandi Sabo Private Limited (1,980 MW) in
Punjab and Jharsuguda IPP (600 MW) in Odisha.
This strategic initiative not only amplifies
Vedanta Power's operational capabilities but also
positions the Company for sustained growth.
The integration of these capacities is expected to
contribute to stable and substantial cash flows,
ensuring a robust balance sheet and sustained
margin stability for the business.
In FY 2023-24, TSPL’s (Talwandi Sabo Power
Limited) plant availability was 82% and Plant Load
Factor (PLF) was 64%.
Overall power sales
13,443 million units
ESG Update
Occupational health and safety
In line with group philosophy, TSPL is also a part of “VIHAN-
Every Step Safe Step” which is a unique safety initiative which
focusses on developing Infra-matrix for each type of critical
risk. In FY 2023-24, TSPL focussed on Category 5 Safety
Incident elimination through Critical Risk Management,
Catastrophic Risk Management, Horizontal Deployment
of Safety Alert Learnings,, Vedanta Safety Standard
Implementation and Engineering / Controls such as Hand
Injury Prevention and Green hand policies.
We continue to strengthen ‘Visible Felt Leadership’
through 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
capability building assisting infrastructure and procedure
development for fire-man endurance test, lifting tools and
Tackles testing bench, apart from regular development
through expansion of Bulker parking, finalisation of road
map for ITMS etc.
Environment
TSPL focusses 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 recommendations of
M/s Golder associates for ash dyke. Additional GISTM
Conformance Assessment of TSPL Ash Dyke Facility by
ATC Williams, Australia and 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 2023-24, TSPL achieved 100% 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.
TSPL has recycled 19% of the water used and reduced
fresh water consumption by various operation controls.
TSPL continues its focus on energy saving projects such as
CEP VFD rpm reduction, condenser vacuum improvement,
HP heaters performance improvement, APH basket and
seal replacement, high energy drain valve replacement and
rectification, replacement of conventional lighting fixtures
with LED lighting fixtures.
To stimulate efforts and reach towards new heights of
sustainable business practices, TSPL continued with ESG
transformation office. TSPL ESG Transformation Office
was created which includes 13 communities of practice
from each aspect of sustainability like Carbon, Water,
Waste, Biodiversity, Supply chain, People, Communities
(CSR), communication, Safety and Health, Acquisitions,
Expansions and Finance. Each Community is led by
a senior leader in the concerned department. Each
community is driving sustainability initiatives in their
community which is being reviewed by Senior management
on regular basis through ESG-TO engagement.
In FY 2023‑24, 124 new projects were identified,
53 initiatives were completed, and 71 improvement
initiatives are in progress.
186
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
187
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
In FY 2023-24, TSPL has reduced Specific GHG emissions
to 3% & has achieved a reduced Specific water consumption
to 11%. In this year TSPL along with district administration
has developed 3 Miyawaki forest covering 0.125 acres land
in the district of Mansa.
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Total Power
13,443
14,187
(5%)
HZL wind power
394
395
-
Jharsuguda 600MW
2,771
3,048
(9%)
TSPL
10,278
10,744
(4%)
TSPL – Availability
82%
82%
Note: Malco continues to be under care and maintenance since
26 May 2017 due to low demand in Southern India.
Operations
Power sales for the year was 13,443 million units, down by
5% Y-O-Y. Power sales at TSPL were 10,278 million units
with 82% availability in FY 2023-24. At TSPL, the Power
Purchase Agreement with the Punjab State Electricity Board
compensates us based on the availability of the plant.
At Jharsuguda, the 600 MW power plant operated at a
lower plant load factor (PLF) of 58% in FY 2023-24 due to
temporary ash evacuation constraints.
Unit sales and costs
Production
FY
2023-24
FY
2022-23
%
Change
Jharsuguda sales realisation
(`/kWh)1
2.66
2.75
(3%)
Jharsuguda cost of production
(`/kWh)1
2.77
2.50
11%
TSPL sales realisation (`/kWh)2
4.10
4.50
(9%)
TSPL cost of production (`/kWh)2
3.26
3.65
(11%)
(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 price for the year was ` 2.82 per kWh
excluding TSPL, down by 4% and the average generation cost
was ` 2.57 per kWh, up by 9%.
TSPL’s average sales price was ` per 4.10 kWh, down by 9%
at, and power generation cost was ` 3.26 per kWh, down by
11% Y-O-Y.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
6,153
6,724
(8%)
EBITDA
971
913
6%
EBITDA margin
16%
12%
Note: Excluding one-offs
Revenue for the year was ` 6,153 crore, down by 8%. EBITDA
for the year was ` 971 crore, up by 6%.
Strategic Priorities and Outlook
During FY 2024-25, we will remain focussed on
maintaining the plant availability of TSPL and achieving
higher plant load factors at Jharsuguda IPPs.
Our focus and priorities will be to:
Resolve pending legal issues and recover aged power debtors
Improve power plant operating parameters to deliver higher PLFs/
availability and reduce the non-coal cost
Ensuring safe operations, energy and carbon management
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
189
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
188
IRON ORE
The year in brief
Sesa Goa is one of the largest private sector exporters of iron ore in India. During
FY 2023-24, Operationalised Bicholim mine in Goa (3 MTPA capacity), marking the
commencement of first mining operation in the region after six years. Also, WCL
made its first shipment in freight friendly market earning a higher margin.
In Coke business, Prime Hard coal consumption was reduced to 20% in FY 2023-24
from 35% in FY 2022-23 in overall coal blend.
Highest ever saleable ore production at Karnataka
5.6 million tonnes
ESG Update
Occupational health and safety
With our vision towards the aim of Zero Harm, we are
committed to achieving zero fatal accident at Iron ore
Business. Our Lost Time Injury Frequency Rate (“LTIFR")
is 0.89 compared to 0.79 in previous year. Currently, we
are 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 partner 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. Our prime
focus is on elimination, substitution, and Engineering Controls
to reduce workplace-related hazards.
Vedanta has launched a HSE-based portal by name V‑Unified
(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 Sesa Goa, we have rolled out Critical Risk Management
(CRM) modules to improve our safety culture and bringing
down our injury rates. All the observations are being tracked,
analysed, and rectified by preparing global action plans. We
have achieved more than 95% actual verifications vs our
planned verifications. We have implemented Monthly theme
of the month campaigns for implementation of Vedanta
Safety Standards at shop floor level and creating awareness
among all the employees and business partners.
In Health function, we have also launched SEVAMOB digital
platform for digitisation of Employee Medical Records which
help us in tracking and giving health-related trend analysis
of employees.
We have rolled out Safety Governance structure and Safety
score card system for all SBUs of IOB. Through Safety
Governance structure, senior line function leaders are driving
safety management system for their SBUs.
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. Specialised safety trainings like defensive
driving, work at height, confined space, crane lifts, etc. are
provided to concerned employees based on their job role.
Environment
At Sesa Goa, we strive towards zero harm to environment.
We work on the principle of Reduce, Recycle and Reuse
across business. We harvest rainwater at all our operational
sites and are water positive. We also adopt best practices
in mine reclamation and Sanquelim mine reclamation is
a testament to the same. We have planted 66,000+ native
species plants across SBUs in this year.
Value-Added Business also improved its air pollution
control devices by replacing the old bag houses by new
efficient baghouses.
190
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
191
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
At Iron ore Karnataka, continuing with its best practices,
Company has constructed 38 check dams, 7 settling ponds.
Additionally, Company has de-silted 2 nearby village ponds
increasing their rainwater harvesting potential by 20,000 m3/
annum.
To abide by our net zero target by 2050, Sesa Goa is the first
Company to take the trial of EV wheel loaders in open cast
mines at IOK and is determined to convert the existing fleet to
EV. Vedanta SESA Goa has taken a step forward to promote
sustainable transport by installing the first ever free EV fast
charging station at Amona, VAB. This charging station will
allow all the employees, business partners and people from
the community to adopt sustainable transport. Vedanta
Sesa Goa is actively advocating for the broader adoption of
biodiesel, across its diverse business units.
Awards and accolades
‘Vedanta - Value Added Business (VAB)’ for “Platinum
Award” and ‘Pig Iron Division-I’ for “Gold Award” in
“15th EXCEED Safety and Security Award 2023” in
Occupational Health and Safety category under ‘Mining
and Metallurgy Sector’
VAB recognised as most energy-efficient Designated
Consumer (DC) for its commitment to energy
conservation measures in the Iron and Steel sector
in Goa and received “Award of Excellence” from State
Designated agency, Electricity department, Goa
VAB has won “Energy efficient unit award” in
“24th National Award for Excellence in Energy
Management 2023”
IOK successfully hosted MEMC Week in FY 2023-24 and
bagged 8 awards during the event
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Production (mn dmt)
Saleable ore
5.6
5.3
5%
Goa
0.0
-
-
Karnataka
5.6
5.3
5%
Pig iron (kt)
831
696
19%
Sales (mn dmt)
Iron ore
6.2
5.7
8%
Goa
0.3
0.7
(64%)
Karnataka
5.9
5.0
19%
Pig iron (kt)
836
682
23%
Operations
At Karnataka, highest ever annual saleable production
of 5.6 million tonnes in FY 2023-24, up by 5% Y-O-Y
due to operational efficiency and process improvement.
We recorded highest ever annual sales of 5.9 million tonnes
in FY 2023-24, up by 19% Y-O-Y due to improvement in
logistics efficiency, which in turn helped to liquidate the
inventory level. We achieved highest ever annual production
of pig iron of 831 kt in FY 2023-24, up by 19% Y-O-Y driven
by improvement in process efficiency and FY 2022-23
production was impacted due to shut down in one of
the smaller blast furnaces. Also, we achieved highest
ever annual sales of 836 kt, up by 23% Y-O-Y driven by
improvement in operational & logistics efficiency.
At Goa, we bought iron ore in auctions held by Goa
Government in FY 2023-24 which was then beneficiated.
Around 0.3 million tonnes were exported and some ore
were consumed to cater to requirement of our pig iron plant
at Amona.
For Bicholim mines, EC for 3 MTPA was granted in January
2024 and operations were seamlessly restarted in end of
March 2024 within 15 months of its acquisition.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
9,069
6,503
39%
EBITDA
1,676
988
70%
EBITDA margin
18%
15%
Revenue for the year was ` 9,069 crore, up by 39% Y-O-Y
mainly due to higher volume at Karnataka and VAB. EBITDA
for the year was ` 1,676 crore, up by 70% Y-O-Y majorly due
to increase in sales at Karnataka and VAB and softening of
coking coal prices.
Strategic Priorities and Outlook
Our near-term priorities comprise:
IOK - 7.2 MTPA MPAP Removal from Karnataka. Dry and wet
beneficiation plant commissioning
IOG - Commencement of Mining operations at Cudnem mines in Goa
WCL - Ramp‑up our operations and setting up magnetite concentrator
plant, tailing processing unit and mini concentrator plant
VAB – DIP project execution and debottlenecking projects completion
Green Mining leveraging, digitalisation, and Renewable energy
Ramp‑up of our operations in Coke business at Gujarat and
Vazare, Maharashtra
192
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
193
STEEL
The year in brief
ESL Steel Limited or ESL is an integrated
steel plant situated in Bokaro, Jharkhand,
with a design hot metal capacity of 3.5 MTPA.
Its current operating hot metal capacity is
1.5 MTPA with a diversified product portfolio of
Wire Rod, Rebar, DI Pipe and Pig Iron which are
sold across key sectors such as construction,
infrastructure, transportation and energy.
In line with debottlenecking and improved
operational efficiency, ESL achieved highest
ever hot metal production of 1.47 million
tonnes up 8% Y-O-Y and highest ever saleable
production of 1.4 million tonnes up 8% Y-O-Y.
Highest-ever crude steel production
1.4 million tonnes
Environment
Waste and circular economy
We have achieved 100% utilisation of High-Volume
Low Toxic waste by re-using in cement plants, brick
manufacturing and earth filling
Climate change
Started to use Dolachar at Sinter plant which has led to
reduction in Coke Fines consumption and the same has
resulted in reduction of more than 58,000 tCO2 emission
About 40+ Energy-saving projects are completed in
this year contributing significantly in carbon emission
reduction as about 60,000 tCO2
Biodiversity/Plantation
Greenbelt cover of 36.44% with 3,76,246 trees and
maintaining a density of 2,923 trees/ha including
Miyawaki afforestation of 2.66 acres with 53,000 saplings
which is a first-of-its-kind initiative in Jharkhand
Water management
275 KL/day sewage treatment plant has been
commissioned which would reduce fresh water offtake
by 275 KL/day. This would ensure saving of fresh water
90,000 KL/annum
Reduced freshwater offtake from the reservoir by
1.5 Million m3 through the following water stewardship
programme. This has resulted in achieving specific water
consumption of 2.7 m3/tcs from 2.8 m3/tcs
ESG Update
Occupational health and safety
Safety is a paramount focus for ESL, ingrained in every
facet of our operations. We prioritise the well-being of our
employees, business partners, and the communities we
serve primarily. Through rigorous training programmes,
stringent safety protocols, and continuous monitoring, we
ensure that safety remains at the forefront of every task,
from the shop floor to the boardroom. Our commitment to
safety extends beyond compliance with regulations; it is
a core value that guides our decision-making and shapes
our culture. By fostering a safety-conscious environment,
we not only protect lives and assets but also cultivate trust,
loyalty, and long-term success.
Few specific projects which have improved safety
culture in our organisation:
Leveraging Technology for enhancing safety
deliverables such as V-Unified digital platform,
digital and AI-based Camera surveillance, AI-based
sleep detection cameras
Infrastructural development with robust engineering
controls such as interlocking of all 170+ conveyor
guarding, vehicle parking infra facilities for LMV and
HMV vehicles, SCADA system
Identification of 60 Similar Exposure Group
(SEG) based on the activities performed and the
associated occupational health hazards
Industrial Hygiene Study has been conducted
based on the identified SEGs covering the entire
plant operations to identify the red, amber and the
green zones with the required engineering controls
to mitigate the health risks
194
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
195
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ESG
We have a robust transformation office and governance
structure including 12 Community of Practices which is
spearheaded by CEO and senior leadership. Identified 97
projects under various COPs and 27 projects have been
completed and 30 project are in final stage.
Specific Energy and GHG Emissions:
SEC has been reduced from 0.676 toe/tcs to
0.668 toe/tcs
GHG emission intensity is reduced from 2.92 tCO2/tcs
to 2.83 tCO2/tcs
Various projects such as CML5 Motors optimisation,
Caster exhaust fan automation, Commissioning of
LT Capacitor banks, Thermal insulation work, VFD
installation and other initiatives have led to power
savings of 3,705 MWH annually
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Production (kt)
1,386
1,285
8%
Pig iron
203
192
6%
Billet
30
26
15%
TMT bar
505
463
9%
Wire rod
436
407
7%
Ductile iron pipes
212
196
8%
Operations
Production of saleable product for the year was
1,386 kt, up by 8% Y-O-Y in line with increased hot
metal due to debottlenecking of blast furnace and
operational efficiencies.
Softening of costs in raw materials such as coking coal,
coupled with various market dynamics, led to a decrease
in the cost of sales while sales and market prices
remained under pressure.
In FY 2023-24, our captive mines at Barbil produced
5.4 million tonnes and dispatches were 5 million tonnes,
ensuring iron ore raw material security.
Our priority remains to enhance production of value-
added products viz. Rebar, Wire Rod and DI Pipe and
hence margins.
Regarding renewal of Consent to Operate (CTO) for the
steel plant at Bokaro, Ministry of Environment, Forests
and Climate Change (MoEF&CC) has issued a letter to
forest department of Jharkhand to submit the complete
compliance of the condition for further consideration.
State has submitted the Compliance Report vide letter
dated 17 November 2023 citing the progress and
requesting to reconsider the FC Stage I revocation. Further
updated letter is expected from the State by MOEF&CC
with respect to the status.
For detailed information, please refer to ‘Note 3(c)
Significant accounting estimates and judgements’ of the
consolidated financial statements.
Prices
Production
FY
2023-24
FY
2022-23
%
Change
Average steel price (US$ per tonne)
610
689
(11%)
Average sales realisation for the year was US$ 610 down
by 11% Y-O-Y. Prices of iron and steel are influenced
by several macro-economic factors. These include
global economic scenarios, wars, 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.
Unit costs
Production
FY
2023-24
FY
2022-23
%
Change
Steel (US$ per tonne)
588
656
(10%)
Cost for the year was US$ 588 per tonne, down by 10%
Y-O-Y primarily on account of decrease in coking coal
prices during the reporting period, and other operational
efficiencies which is partly offset higher bid premium paid
on captive iron ore mines dispatches.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
8,300
7,852
6%
EBITDA
225
316
(29%)
EBITDA margin
3%
4%
-
Revenue for the year was ` 8,300 crore, up by 6% Y-O-Y,
primarily due to higher volume which is getting offset due
to lower realisation. EBITDA was ` 225 crore, down by
29% Y-O-Y.
Strategic Priorities and Outlook
Steel demand is expected to be robust in India, buoyed by strong demand
from key sectors (construction and housing, automobiles, power projects)
and Government’s push to ramp‑up infrastructure spend in India. Hence, we
prioritise to increase our hot metal production capacity from 1.7 MTPA to
3.5 MTPA by FY 2024-25 with a vision to become high-grade and low-cost steel
producer with highest Environment, Health, and Safety standards.
The focus areas comprise:
Innovation in Technology for sustainable operations/production
Development of low-cost Capex products (Alloy Steel Segments, Flat Products, new DI plant) to
capture market share
Optimise and significantly reduce logistics cost over time
Obtain clean ‘Consent to Operate’ and environmental clearances
Ensure zero harm and zero discharge, fostering a culture of 24x7 safety culture
196
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
197
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FERROCHROME
The year in brief
Ferro Alloys Corporation Limited or FACOR has a strong presence in the business of
producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 145 KTPA
one operational Chrome mines and 100 MW of captive power plant.
In FY 2023-24, Ferrochrome ore production was 240 kt which is down by 17% Y-O-Y
on account of statutory clearances for Kalarangiatta Mine. Ferro Chrome production
was 80 kt up 18% up Y-O-Y being highest ever production since acquisition.
Record saleable production
80 kt
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 of mines
We successfully eliminated a few critical jobs from line
of fire by shifting the control levers of furnace charging,
furnace door operations and furnace inspection
by shifting the control levers and switches into the
control room
A safety training kiosk has been deployed inside the
plant premises to provide standardised safety training to
all stakeholders including drivers
A lot of major initiatives and state-of-the-art technology
implemented inside the mine premises in the areas of
mine design, simulation, monitoring and data analysis.
Live monitoring system have been implemented in slope
monitoring, air quality monitoring and water quality
monitoring. All the HEEMs are fully equipped with safety
features suggested by the statutory body – Director
General of Mines Safety (DGMS)
ESG Update
Occupational health and safety
LTIFR for the year was 0.32 as compared to 0.13 in
FY 2022-23. The total number of injuries reported in the
year was significantly reduced by 35%. The reduction
was driven by several safety awareness, investigation,
and prevention initiatives. There has been greater
management focus to bring a cultural change via felt
leadership programmes, town halls and recognition for
near-miss reporting
Completion of Arc Flash assessment for all electrical
panels at CCP and Power Plant
AI-based Safety System “T-Pulse” which was already
was installed in CCTV Cameras of 45 MVA Furnace was
extended to 33 MVA Furnace at Charge Chrome Plant
(CCP) to auto-detect Unsafe observations
For Risk Management, EOT Cranes were provided with an
Anti-Collison device and Audio-Visual Alarm
198
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
199
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Environment
Public Hearing has been conducted successfully for
Patabali COB Plant for the capacity of 495 KTPA and
for Ostapal Chromite Mine for Expansion of Opencast
to Underground Mines with Enhanced Capacity of
1.5 million tonnes Chromite ROM from current Capacity
of 0.24 million tonnes Chromite ROM Production.
Public hearing has been conducted successfully at
Charge Chrome Plant for expansion of Ferro Alloys
Plant for High Carbon Ferro Chrome production from
140 KTPA (1 x 45 MVA, 1 x 33 MVA) to 440 KTPA (1x45
MVA, 1 x 33 MVA and 2 x 75 MVA) and 11,800 tonnes
from Metal Recovery Plant along with new installation
of Raw Material Handling Facility and 700 KTPA Pallet
and Sinter Plant
Environmental Clearance for Capacity 495 KTPA was
obtained for Patabali COB Plant
ETP (Effluent Treatment Plant) Sludge from Mines
disposed timely to OSPCB authorised vendor
Plastic waste disposal to authorised OSPCB Vendor for
Ostapal and Kalarangiatta Chromite Mines and carried
out Plastic waste collection drive to make single-use
plastic-free plant premises
Installation of IOT flowmeter in the intake well of
Salandi River for Power Plant and Installation of IOT
Flowmeter in the ETP (Effluent Treatment Plant) inlets
of both Ostapal and Kalarangiatta Chromite Mines
Installation of fugitive dust control system in Ground
Hopper of the new furnace
Installation of 7 KVA solar under progress at mines
Awards and Accolades
HR Association of India Awards 2023 in Employee
Engagement and Experience Award
CEE Power-gen ESG and Sustainability Award for
water stewardship
FAME Award in “Environment Management” in
Diamond category
5 Awards in the category of Systematic Development,
Environment Monitoring, Mineral Beneficiation,
Resettlement and Rehabilitation and Overall
Performance at MEMC Week Final Day Celebration
Strategic Priorities and Outlook
Expansion of growth capex project of 300 KTPA
Ferrochrome production
Expansion of mines project of 1.5 MTPA
Establishment of 600 KTPA concentrator plant
Revival of Kalarangiatta and Kathpal mines
100 MW power generation and sale of additional power sale
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Ore Production (kt)
240
290
(17%)
Ferrochrome Production (kt)
80
67
18%
Ferrochrome Sales (kt)
78
67
16%
Power Generation (MU)
291
112
160%
At Mining division, ROM production from Ostapal Mine
achieved 100% of EC limit, i.e. 240 kt and EC for enhanced
production of 1.5 million tonnes per annum is in pipeline, and
for that public hearing has been conducted successfully in
December 2023. Production at Kalarangiatta mine has been
temporarily halted due to statutory clearance issue, but full
fledged production will commence again in FY 2024-25.
At Charge Chrome Plant (CCP), we recorded Ferrochrome
metal volume of 80 kt in FY 2023-24. We have recorded
highest ever monthly ferro chrome production of 8,907 mt
in January 2024. We have reduced our specific ore
consumption to 2.31 mt/mt against 2.40 mt/mt. Current year
specific coke consumption is 560 Kg/mt against 591 Kg/mt
last year.
At Power Plant, we recorded annual Power Generation of
291 MU in FY 2023-24.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
809
768
5%
EBITDA
115
149
(23%)
EBITDA margin
14%
19%
Revenue for the year was ` 809 crore, up by 5% Y-O-Y,
primarily due to higher sales volume partially offset by lower
realisation. EBITDA for the year was ` 115 crore, down by 23%
mainly due to higher cost of production because of purchase
of ore from external sources and statutory clearance pending
for Kalarangiatta Mines.
200
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
201
COPPER –
INDIA / AUSTRALIA
The year in brief
Silvassa operations continued to deliver 21% growth in sales volume on Y-O-Y basis
and significant portion of which is catered to India’s domestic copper market.
The copper smelter plant at Tuticorin was under shutdown for the whole of
FY 2023-24. On 29 February 2024, the Supreme Court dismissed the Special Leave
Petitions filed by the Company towards plant restart. The Company is evaluating
legal remedies for sustainable restart of Tuticorin plant.
Growth in sales volume
21%
process has seen significant reduction of approx. 39,000+
tCO2e compared to primary sources. The Company has been
constantly striving to achieve efficiency in terms of power
consumption in process vis-à-vis – installation of IE4 motors
phasing out lesser efficient motors. Emission reduction
programmes in pipeline include implementation of E-Forklift
and announcement of E-Vehicle Incentive programme for all
eligible employees.
First-of-its-kind Digital Initiative
Copper business has launched "CuBert", the first AI chatbot
in Base Metal Industry, to transform Customer Experience
(CX) through digital innovation. CuBert enhances customer
engagement with features like real-time order tracking,
live LME & Forex rates, and access to booking details,
quality certificates, ledger statements, and many more. By
integrating real-time data and personalised interactions,
CuBert has significantly improved user satisfaction and set a
new industry standard in customer service.
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Production (kt)
India – cathode
141
148
(5%)
Sales (kt)
198
164
21%
Operations
Copper production in Silvassa reduced by 5% to 141 kt
owing to global copper blister shortage. However, sales
have witnessed growth of 21% in terms of sales volume
and realised highest sales after closure of the Tuticorin unit
and improved operational efficiencies, debottlenecking and
capability building initiatives carried across the plant, the year
also marked remarkable growth in free cash flow.
In the matter of restart of Tuticorin operations, the Supreme
Court has dismissed Special Leave Petitions filed by the
Company and refused to grant it permission to reopen
ESG Update
Occupational health and safety
The lost time injury frequency rate (LTIFR) was 0.39 in
FY 2023-24 (FY 2023-23: 2.77). This year witnessed
adoption of new technologies to enhance the workplace
safety. Artificial Intelligence based camera system were
installed for continuous monitoring of the workplace to
detect any unsafe acts/conditions in the critical work areas.
Initiated projects such as Air-Cooled helmets for employees
working in hot work areas and fatigue monitoring devices
for forklift drivers. Critical Risk Management (CRM). The
safe work culture was promoted by the safety leadership
with constant interaction with business partners and other
stakeholders through trainings, campaigns, leadership
walkthrough programmes, stand downs, committee
meetings and R&R programmes.
The Silvassa copper operation was awarded with the British
Safety Council – International Safety Award in the Merit
Category as a testimony to our commitment of maintaining
safe and healthy workplace.
Environment
Aligned with the Vedanta’s vision to reach net zero
emissions by 2050, Sterlite Copper has signed contract
with M/s Serentica Renewable Power Limited for the
supply of 16 MW with a potential to offset 64,535 tCO2e per
annum. Further, consumption of secondary copper in the
202
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
203
Management Discussion
and Analysis
Integrated Report and Annual Accounts 2023-24
VEDANTA LIMITED
Tuticorin smelting operations. The Company is evaluating
legal remedies for sustainable restart of Tuticorin plant.
For detailed information, please refer to ‘Note 3(c) Significant
accounting estimates and judgements’ of the consolidated financial
statements.
Prices
Production
FY
2023-24
FY
2022-23
%
Change
Average LME cash settlement
prices (US$ per tonne)
8,353
8,530
(2%)
Average LME copper prices reduced by 2% compared with
FY 2022-23 predominantly due to lower than expected
demand in China & Higher US Fed Interest rates.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
19,730
17,491
13%
EBITDA
(69)
(4)
-
EBITDA margin
-
-
-
Revenue for the year was ` 19,730 crore, up by 13%.
The increase in revenue was mainly due to higher volume,
favourable exchange rate partially offset by lower Copper
LME prices. EBITDA for the year was ` (69) crore, mainly on
account of supply shocks from global blister shortage.
Strategic Priorities and Outlook
Over the following year, our focus and priorities will be to:
Improving operating efficiencies, increasing Sales Margin, reducing our cost profile
Upgrade technology and digitalisation to ensure high-quality products and services that sustain
market leadership and surpass customer expectations
Continuous debottlenecking and upgrading our processing capacities for increased throughput
NICOMET
PORT BUSINESS
The year in brief
Indian market for Nickel sulphate and Nickel metal is driven by sectors like stainless steel and
electroplating. Further, nickel is also a key component of electric vehicles which is fuelling the growth.
Currently, there is total 44 KTPA domestic market of primary Nickel metal and 2 KTPA domestic
market. Nickel market in India is expected to grow at the CAGR of 4.7%. Our metal production is
mostly sold in the domestic market where our market share is currently close to 7.5%. We have also
captured 35% of total Nickel sulphate domestic market. Further, Nickel sulphate is exported to the EV
battery makers in South Korea, Japan and China. We have also signed export LTC with South Korean
EV battery manufacturer.
Vizag General Cargo Berth (VGCB)
The volumes handled increased by 9% Y-O-Y and the despatch volume increased by 9%
Y-O-Y. 23% of the total volumes handled represents Multi-cargo (i.e., other than coal)
under supplementary agreement signed with Visakhapatnam Port Authority (VPA).
ESG
Occupational health & safety
We believe every incident can be prevented.
The lost time injury frequency rate (LTIFR) is
6.92 in FY 2023-24 vis-à-vis 2.91 in FY 2022-23.
To improve safety at workplace, we promote felt
leadership culture with involvement of senior
leaders for strengthening our safety system.
Production performance
Production
FY
2023-24
FY
2022-23
%
Change
Production (mt)
Nickel
2,702
681
-
Sales (mt)
2,911
194
-
Prices
(US$ per tonne)
Production
FY
2023-24
FY
2022-23
%
Change
Average LME CSP
19,083
25,628
(26%)
Nickel CSP for the year was US$ 19,083 per tonne, down by
26% mainly on account of global market rebalancing.
Financial performance
(` crore, unless stated)
Particulars
FY
2023-24
FY
2022-23
%
change
Revenue
455
42
-
EBITDA
(32)
(23)
EBITDA margin
-
-
Projects
With the view of rising Nickel demand due to
upsurge in the EV battery markets, outlook of the
global Nickel demand is very much positive. We
have planned on enhancing the plant capacity
production in following two phases:
In the first phase, debottlenecking is under
progress in the existing plant, to reach capacity
of 10 KTPA. This will be supported with plant
automation, modernisation and ensure optimum
utilisation of assets
The second phase of capacity enhancement will
be setting up a new ‘state-of-the-art' Nickel plant
with the capacity of 50 KTPA to cater the Indian
domestic demand in line with our Chairman's
vision – “Desh Ki Zarooraton Ke Liye”
Safety stand-downs were conducted
to communicate the learnings from
safety incidents across the group.
Our safety leadership regularly engages
with the on‑ground team to improve
behaviour‑based safety culture.
204
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
205
Management Discussion
and Analysis
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
1. KEY BUSINESS, FINANCIAL AND
OPERATIONAL HIGHLIGHTS
COMPANY OVERVIEW
Vedanta Limited (“VEDL” or “Company”), a subsidiary
of Vedanta Resources Limited, is leading global natural
resources conglomerate operating across India, South
Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan. It is
headquartered in Mumbai, India.
Over the years, your Company has positioned itself as a
leading natural resources and technology conglomerate,
focusing on large scale expansion of its portfolio in India with
operational excellence benchmarked to global standards.
For two decades, we have facilitated the growth of the Indian
economy by contributing to the national exchequer and
creating thousands of jobs.
Vedanta is a uniquely diversified Company across the
natural spectrum and produces commodities vital for global
decarbonisation and materials intensive energy transition.
The Company has significant operations in Oil & Gas, Zinc,
Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium,
Power & Glass Substrate and foraying into electronics and
display glass manufacturing. It strives to create long-term
value for all our stakeholders through exploration, discovery,
sustainable development and utilisation of diversified
natural resources. The Company’s steadfast focus remains
on delivery and operational excellence while increasing
technology adoption and digitalisation to enhance profitability
and 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.
Transforming for the Future
Your Company continue to foster structurally low-cost and
diverse assets with excellent potential, which fuel our growth
ambitions. Our investments in smarter processes, industry-
leading efficiencies, empowerment of our people, and
strong corporate governance help us address the nation’s
growing needs.
Our strategic decisions are supported by robust cashflows,
disciplined capital allocation and emphasis on sustainability
in everything we do. We cater to diverse consumer markets
for their primary materials needs and are leaders in the
segments we operate in. With a responsible business model
and through activities that generate economic, human, and
social value, we are ideally positioned to partner in India’s
journey towards greater self-reliance.
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 for
the financial year ended 31 March 2024 of Vedanta Limited.
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
207
206
STATUTORY REPORTS
Directors’ Report
FINANCIAL STATEMENTS
CORPORATE OVERVIEW
Operational Highlights
Transformational Journey Ahead:
Leveraging cost efficiency to offset commodity prices and boost margins
COMPANY PERFORMANCE
Financial Highlights
The standalone and consolidated financial statements of
the Company for the financial year ended 31 March 2024,
prepared as per Indian Accounting Standards (“Ind AS”) and
in accordance with the provisions of the Companies Act,
1. Excludes custom smelting at Copper Business.
2. ROCE (Return on Capital Employed) is calculated at EBIT net of tax outflow divided by average Capital Employed.
2013 (the “Act”) and Securities and Exchange Board of India
(“SEBI”) (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“Listing Regulations”) forms part of this
Annual Report.
Uniquely
diversified
Company across
the resource
spectrum
Demerger will create
pure play companies
- unlocking
true value of all
our business
Pure Play verticals
to provide a
menu of choices
for investors
India holds
huge resource
potential out of
which even 20%
remains unexplored
Vedanta as Indian
Institution – will
get to different
level in next
25 years
`1,41,793
crore
REVENUE
c.23%
ROCE2
`36,455
crore
EBITDA
`23,046
crore
FCF
(Pre-capex)
`11,254
crore
PAT before
exceptional items
`15,421
crore
Strong liquidity position
Cash & Cash
Equivalent
30%
EBITDA
Margin1
1.5x
Net Debt/
EBITDA
ALUMINIUM
•
Highest ever Annual production at 2,370 kt.
•
Commissioned Train-I of 1.5 MTPA Lanjigarh refinery taking total
capacity to 3.5 MTPA.
•
Aluminium COP lower by 940 $/t over last 7 quarters.
ZINC INDIA
•
Highest ever Annual production across mined metal, refined
metal and silver.
•
Holds 2nd largest zinc reserves and resources globally.
•
Lowest annual Zinc COP for last 3 years at 1,117 $/t.
OTHERS
Iron and Steel:
•
Highest ever Annual production across iron ore, steel and pig iron.
•
Operationalised the Bicholim mine in Goa (3 MTPA capacity), marking the
commencement of first mining operation in the region in nearly six years.
FACOR:
•
Highest ever Annual production of Ferrochrome (HCFC) at 80 kt.
SILVER GROWTH CONTINUES
•
HZL is the only silver producer in
India and is now the 3rd largest
silver producer globally.
•
With FY 2023-24 production of
746 MT, the production increased
by c.5% Y-o-Y.
CAGR of 14%
Silver Production (tonnes)
47
0
300
100
400
200
500
600
700
800
746
FY 2023-24
FY 2022-23
FY 2021-22
FY 2020-21
FY 2019-20
FY 2018-19
FY 2017-18
FY 2016-17
FY 2015-16
FY 2014-15
FY 2013-14
FY 2012-13
FY 2011-12
FY 2010-11
FY 2009-10
FY 2008-09
FY 2007-08
FY 2006-07
FY 2005-06
FY 2004-05
FY 2003-04
FY 2002-03
208
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
209
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Business Highlights
Historic-high silver & metal production with strong
cost resilience
•
2nd largest zinc R&R base globally with R&R of
456.3 million tonnes as on 31 March 2024, up
by ~35% in last 5 years (net of 65.1 MT of ore
production).
•
Hindustan Zinc is now the 3rd largest silver
producer globally.
•
Positioned in 1st decile of global zinc mines
cost curve.
•
New Roaster at Debrai of 160 KTPA and
Hindustan Zinc Fertilisers Private Limited (HZFPL)
of 510 KTPA: Progress on track.
Enhancing Reserve and Resources to secure future
profitability
ZINC INDIA
• Highest ever annual refined metal production of
1,033 kt.
• Highest volume recorded in Silver at 746 MT up by
5% Y-o-Y.
• Refined lead production at 216 kt up by 3% Y-o-Y.
OIL & GAS
• Average daily gross operated production of
128 Kboepd, natural decline was partially offset
by the infill wells brought online across all assets.
Key highlights:
•
Company’s estimated total gross 2P Reserves plus
2C Resources stands increased from 1,156 Mmboe
to 1,376 Mmboe.
Growth Projects:
•
Infill wells: Drilled 10 infill wells across RDG, Mangla &
NE fields.
•
Exploration: 6 wells drilling campaign commenced in
North -East region. First well spud planned in April 2024.
Kboepd: Thousand barrel of oil equivalent per day; boe:
barrel of oil equivalent; RDG: Raageshwari Deep Gas;
Mmboe: Million barrel of oil equivalent
Highest ever production, with 50%+ improvement in
annual margin
• Hot metal production at 2,370, up by 3% Y-o-Y.
• Aluminium COP at 1,796, down by 23% Y-o-Y.
Key Highlights:
•
Alumina production at Lanjigarh refinery at 1,813 kt,
up by 1% Y-o-Y.
•
Highest ever production run rate (6.5 kt per day).
•
Highest Domestic sales at 978 kt, up by 26% Y-o-Y.
Others Highlights:
•
Train-I of 1.5 MTPA capacity commissioned at
Lanjigarh as a part of overall 3 MTPA expansion.
•
Ranked 1st in S&P Global Corporate Sustainability
Assesment ("CSA") in Aluminium Industry Group.
•
Operationalised the Bicholim mine in Goa (3 MTPA
capacity), marking the commencement of first
mining operation in Goa region after six years.
•
Highest ever Karnataka saleable ore production
and sales was at 5.6 million tonnes and 5.9 million
tonnes respectively.
•
Highest ever Pig Iron production at 831kt, up by
19% Y-o-Y.
ALUMINIUM
IRON ORE
•
TSPL plant availability was 82% in FY 2023-24.
POWER
Saleable Silver
Production (t)
FY 2022-23
FY 2023-24
714
746
Mined Metal
Production (kt)
1,062
FY 2022-23
1,079
FY 2023-24
1. COP is excluding royalty
Refined Metal
Production (kt)
1,032
FY 2022-23
1,033
FY 2023-24
COP 1 ($/t)
1,257
1,117
FY 2022-23
FY 2023-24
$466 million
Approved Capex
4 MTPA 8 MTPA
Open-cast mine expansion
NEW 4 MTPA
Concentrator
Gamsberg (Phase-2)
Gamsberg Phase-2 Update:
•
Engineering and
procurement are
~100% and ~96%
completed, respectively.
•
Concrete, structural steel
erection and equipment
erection are on track.
VZI to deliver 500+ KTPA MIC run rate within 2 years
ZINC INTERNATIONAL
• Gamsberg production was 29% lower at 147.3 kt
due to lower throughput, lower grades, and lower
zinc recoveries.
• Cost for the year decreased by 6% to $1,488 $/t.
VZI Production (kt)
65
58
61
70
FY 2018-19
17
145
147
450
FY 2020-21
FY 2023-24
FY 2026-27
Gamsberg BMM
500+
6x
1. MIC: Metal in concentrate; COP with TcRc Cost.
Key highlights
•
FY 2023-24 Gamsberg COP1 lower by 3% Y-o-Y.
•
Reinitiated the 700 KTPA Magnetite Project- Target
completion September 2024.
Focus on production enhancement and cost reduction
208
147
65
61
Total MIC1 Production (kt)
FY 2022-23
FY 2023-24
Gamsberg
BMM
Gross Production
(Kboepd)
143
FY 2022-23
128
FY 2023-24
Opex
($/boe)
13.7
13.9
FY 2022-23
FY 2023-24
Aluminium Production
(kt)
2,291
FY 2022-23
2,370
FY 2023-24
+3% Y-o-Y
Aluminium COP
& Margin
COP ($/t)
Margin ($/t)
2,324
322
FY 2022-23
1,796
494
FY 2023-24
210
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
211
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
•
Highest ever sales at
198 kt since closure of
Tuticorin operations.
•
Highest ever annual saleable
production and hot metal
production at 1,386 kt and
1,473 kt, up by 8% Y-o-Y.
•
Highest ever DIP production of
212 kt, up by 8% Y-o-Y.
•
Highest ever annual dispatch
at 1,394 kt, up by 11% Y-o-Y.
•
Achieved all time high
annual Ferrochrome
production of 80 kt, up by
18% Y-o-Y.
•
New Briquetting
plant installed with
20 TPH capacity.
Driving performance with consistent production growth, paving ways for future capacities
Karnataka Iron Ore
•
Highest ever annual
sales, up by 19% Y-o-Y
due to improvement in
logistic efficiency, which
in turn helped to liquidate
the inventory level.
•
Highest ever annual
production, up by
19% Y-o-Y, driven by
improvement in process
efficiency, resulting in
increased production.
VAB
Sales
(million tonnes)
Production
(kt)
5.0
696
FY 2022-23
FY 2022-23
5.9
831
FY 2023-24
FY 2023-24
•
Highest ever annual
saleable production at
1,386 kt, up by 8% Y-o-Y.
•
Highest ever annual
dispatch at 1,394 kt, up by
11% Y-o-Y.
•
Dispatches from iron ore
mines at 5 million tonnes,
up by 39% Y-o-Y.
•
Annual Ferrochrome
production up by
18% Y-o-Y.
Steel
Saleable production
(kt)
Ferrochrome
Ferrochrome production
(kt)
67
FY 2022-23
80
FY 2023-24
1,285
FY 2022-23
1,386
FY 2023-24
The details of the business, results of operations and the significant developments have been further elucidated in Management
Discussion & Analysis section of the Annual Report.
ESG Highlights
In FY 2023-24, your Company continued to consolidate the transformative ESG agenda for the organisation by focussing on
strengthening the governance structure, streamlining KPIs, and regularly reviewing the implementation process for the targeted
projects that will help us achieve our short term, medium term, and long-term goals.
The Company continues to focus on three ESG pillars: “Transforming the Planet”, “Transforming Communities” &
“Transforming the Workplace”
STEEL
FACOR
COPPER INDIA
Aim 1 Keep community welfare
as the guiding principle for our
business decisions.
Aim 2 Empower 2.5 million individuals
with enhanced skillsets.
Aim 3 Uplift 100 million
women and children via social
welfare interventions.
Aim 4 Net Zero Carbon by 2050
or sooner.
Aim 5 Achieving net water
positivity by 2030.
Aim 6 Enhance our business
model by incorporating
innovative green practices.
Aim 7 Prioritise the safety
and health of our workforce.
Aim 8 Promote gender parity,
diversity and inclusivity.
Aim 9 Align with
global standards of
corporate governance.
Our commitment to excellence - our path to leadership
Transforming the Workplace
Transforming the Planet
Transforming Communities
For further details, refer the Sustainability Review section of the Annual Report.
Aims to spend
US$ 5 billion in the
next decade towards
decarbonisation
initiatives
Strong team
of 1,600+
driving ESG
transformation
Key Highlights FY 2023-24
1.6 billion units RE
3rd consecutive year of
1 billion+ units RE usage
0.7x
Water Positivity
20%
Women in
workforce, 33% in
enabling functions
2 million
Trees planted
838 MW RE RTC
Under Construction
36 transgenders
in workforce
92%
High-Volume-
Low-Toxicity
("HVLT") utilisation
VAB: Value Added Business; IOK: Iron Ore Karnataka
RE: Renewable Energy; RTC: Round The Clock
6,000+ Nandghar
Established - Child and
women care center
17.4 million
Women & children
uplifted
212
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
213
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Solidifying our ESG Commitment
1. In diversified peer group 2. In Aluminium peer group
High Impact initiatives drive sustainability leadership
S&P CSA
ranking
Vedanta Limited1
among 238 global companies
Hindustan Zinc1
Among 238 global companies
Vedanta Aluminium2
Most sustainable aluminium producer
3
1
1
Vedanta Limited -
S&P CSA ranking
Vedanta Limited -
S&P CSA ranking
CDP
174
153
98
83
59
33
27 22 1
A-
B
B
B-
B
B
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
CDP Water
CDP Climate
23
19
11
15
6
3
Governance -72
(+29 vs 2018)
Social -82
(+40 vs 2018)
Environment -86
(+46 vs 2018)
Vedanta Limited Overall S&P CSA
score – 80 (out of 100 points)
Total 650 high impact ESG
initiatives
FY 2019-20 FY 2020-21
FY 2021-22 FY 2022-23
Health and Safety
Net Zero Carbon
Innovation and Circular Economy
Water
Nutrition, Healthcare and Welfare
Diversity, Equity and Inclusion
Skilling
Community
Governance
Integrating
ESG through
quality initiatives
KEY EVENTS DURING THE YEAR
Demerger of diversified businesses unlocking significant
value
On 29 September 2023, the Company had announced its plan
to demerge its business units into independent “pure play”
companies to unlock value and attract big ticket investment
into the expansion and growth of each of the businesses.
The Company has a unique portfolio of assets among
Indian and global companies with metals and minerals -
zinc, silver, lead, aluminum, chromium, copper, nickel, oil
& gas, a traditional ferrous vertical including iron ore and
steel, and power, including coal and renewable energy, and
is now foraying into electronics and display glass. The
demerger will result in six separate listed companies viz.
Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power,
In furtherance to the approval by the Board of Directors dated
29 September 2023, the Company had filed the application
with the Stock Exchange(s) and the necessary Observation
letters are awaited post which the scheme will be filed with
the NCLT.
The scheme of demerger along with the supporting
documents 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
Reserves (as defined in the Scheme) to the Retained Earnings
(as defined in the Scheme) of the Company with effect from
the Appointed Date.
The National Company Law Tribunal ("NCLT"), Mumbai
Bench vide its order dated 26 August 2022 (“NCLT Order”),
inter alia, directed the Company to convene meeting of its
equity shareholders to seek their approval to the Scheme;
and file consent affidavits of all the secured creditors and
unsecured creditors of at least value of 90% of unsecured
creditors, at the time of filing the Company 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 requirements specified in the NCLT Order.
Pursuant to the Scheme, the Company will possess
greater flexibility to undertake capital related decisions and
reflect a much efficient balance sheet of the Company.
The Scheme is in the interest of all stakeholders including
public shareholders.
The complete details can be accessed at
www.vedantalimited.com.
Acquisition of Vedanta Semiconductors Private Limited and
Vedanta Displays Limited
In view of the commitment to produce critically important
semiconductors and electronic display modules for the
growing Indian market, the Company at its meeting of
the Board of Directors held on 07 July 2023, approved the
acquisition of 100% of Vedanta Semiconductors Private
Limited (“VSPL”) and Vedanta Displays Limited (“VDL”) from
Vedanta Steel and Ferrous materials, Vedanta Base metals
and Vedanta Limited. Each independent entity will have
greater freedom to grow to its potential and true value via
independent management, capital allocation and niche
strategies for growth. It will also give global and Indian
investors potential to invest in their preferred vertical,
broadening the investor base for Vedanta assets.
The demerger is planned to be a simple vertical split, for every
1 share of Vedanta Limited, the shareholders will additionally
receive 1 share of each of the 5 newly listed companies.
The new companies will remain committed to achieving
net-zero carbon emissions by 2050 and net water positivity
by 2030 with the aim to spend US$ 5 billion over the next 10
years to accelerate this transition.
Twin Star Technologies Limited (“TSTL”) via share transfer
at face value. TSTL is a wholly-owned subsidiary of Vedanta
Incorporated (erstwhile Volcan Investments Limited), the
ultimate holding company of the Company.
Pursuant to the above-mentioned approval, a share purchase
agreement was executed between TSTL and the Company,
and thereafter VSPL and VDL became the wholly-owned
subsidiaries of the Company with effect from 28 July 2023.
Further, the Government of India came out with two modified
schemes for setting up of semiconductor fabs and display
fabs in India on 04 October 2022, and the Company through
its Special Purpose Vehicles filed applications for grant of
subsidies under the same. These applications are currently
under consideration for approval by the Government of India.
The necessary details can be accessed on
www.vedantalimited.com.
Scheme of Amalgamation of Sterlite Ports Limited,
Paradip Multi Cargo Berth Private Limited, Maritime
Ventures Private Limited, Goa Sea Port Private Limited
with Sesa Mining Corporation Limited and their respective
shareholders and creditors
The Board of Directors of the Company approved the sale
of its equity holding in its non-material wholly-owned
subsidiaries namely, Sterlite Ports Limited (“SPL”) and
Paradip Multi Cargo Berth Private Limited (“PMCB”), to Sesa
Resources Limited (“SRL”), which was also a wholly-owned
subsidiary of the Company, as a part of its consolidation
activity of certain entities and thereafter the amalgamation
of SPL, PMCB, Maritime Ventures Private Limited (“MVPL”)
and Goa Sea Port Private Limited (“GSPPL”), wholly-owned
subsidiaries of SPL, with Sesa Mining Corporation Limited
("SMCL"), wholly-owned subsidiary of SRL.
The scheme of amalgamation of the above-mentioned
entities was approved by NCLT, Mumbai Bench on 06 June
2022 with an appointed date of 01 October 2020, and NCLT,
Chennai Bench on 22 March 2023 (“NCLT Chennai Order”)
with appointed date of 01 October 2022, as against the date
of 01 October 2020, contained in the Scheme and already
approved by NCLT, Mumbai Bench. Thereafter, an appeal was
filed to rectify the NCLT Chennai Order before the National
Company Law Appellate Tribunal (“NCLAT”), Chennai
which was allowed by the bench vide its order dated 21
December 2023.
The scheme is now effective and the details of the same can
be accessed at www.vedantalimited.com.
Divestment of Mt. Lyell Copper Mine in Australia
In November 2021, Monte Cello B.V. (“MCBV”), a wholly-
owned subsidiary of the Company, entered into a Term
sheet agreement to divest Copper Mines of Tasmania
214
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
215
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
(“CMT”) by way of an Option Agreement with New Century
Resources. MCBV is 100% owner of the Mt. Lyell Copper
Mine in Australia, a copper asset which has been on care and
maintenance for the last 7 years and not strategic for the
Company with its size and country presence.
Mt. Lyell has been in operation since the 1890’s and was
acquired by MCBV in 1999. Under the ownership of the
Company, Mt. Lyell was successfully operated for over 15
years. The mine was placed into care and maintenance in
2015 following two safety incidents and a depression in the
copper market.
Following an internal strategic review, decision was made in
2021 to divest CMT, running a global sale process to bring
in a capable operator and potential owner to evaluate and
eventually restart operations at Mt. Lyell, creating value for
the community, Tasmanian economy, shareholders and
the Company.
In furtherance to the above, the option to acquire CMT was
exercised by New Century on 01 November 2023. New
Century Resources is a 100% subsidiary of the Sibanye-
Stillwater Group. It owns and operates the Century Zinc Mine
in Queensland, Australia and is among the Top 15 global
zinc producers.
The terms of the sale transaction include US$ 10 million
payment by New Century to MCBV on signing of the sale
transaction agreements, replacement of closure bond of
~US$ 4.5 million followed by US$ 10 million payment on
CMT achieving its first commercial production and upto
US$ 300 million royalty consideration based on future
revenues of CMT.
The detailed announcement can be accessed at
www.vedantalimited.com.
ACQUISITIONS
Meenakshi Energy Limited
During the year ended 31 March 2024, NCLT vide its order
dated 10 August 2023 has granted its approval for the
Resolution Plan as submitted by the Company for acquisition
of Meenakshi Energy Limited (“Meenakshi”) under Corporate
Insolvency Resolution Process in accordance with the
provisions of Insolvency and Bankruptcy Code (“IBC”), 2016.
Subsequently, the Company has implemented the Resolution
Plan and has acquired control over Meenakshi with effect
from 27 December 2023. Meenakshi is a 1,000 MW
coal‑based power plant located at Nellore, Andhra Pradesh.
The acquisition shall enhance the Group’s power portfolio.
Athena Chhattisgarh Power Limited
The Company had emerged as a successful bidder
for acquisition of Athena Chhattisgarh Power Limited
("ACPL") under the liquidation proceedings of IBC for a
consideration of ` 564.67 crore. Further, the application of the
amalgamation of ACPL with the Company along with various
reliefs and concessions was approved by NCLT vide its order
dated 17 July 2023 in accordance with the provisions of
IBC, 2016.
Mines/Mineral Blocks
The Company was declared as the preferred bidder for
various mining leases and composite licenses namely Block
VII- Cudnem Iron ore mineral block in Goa, Sasoli Iron ore and
manganese mineral block in Maharashtra and Kelwardabri
Ni, Cr and Associated PGE Block in Chhattisgarh for which
Letters of Intent were also issued in FY 2023-24. Additionally,
for Ghogharpalli Coal block in Odisha, for which the Company
was declared as the preferred bidder in FY 2022-23, the Coal
Block Development & Production Agreement ("CBDPA") was
executed in FY 2023-24.
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.
Hindustan Zinc Limited: To further enhance metal volume,
160 KTPA Roaster project at Debari is under progress
and has achieved 48.5% as at March 2024 with final
commissioning being targeted by Q4 FY 2024-25. The project
of Hindustan Zinc Alloys has been commissioned in October
2023 and complete ramp up is under progress. Further, the
1.6 LTPA Fumer plant has also been commissioned in August
2023 and full ramp up is targeted by early Q1 FY 2024-25.
The setting up of Fertiliser Plant in Chanderiya is under
progress and Site activities for the Project commenced
in February 2024 and is targeted to be completed by
Q2 FY 2025-26. Further, orders have been placed for
Debottlenecking of Cellhouses at CLZS and DSC for inverse
in metal production by 21 kt.
Aluminium: We are currently India’s largest primary
Aluminium producers and aim to be among the top 5
producers globally with expansion to 3 MTPA capacity along
with 100% backwards vertical integration. Environmental
Clearance (EC) has been recommended by the Ministry of
Environment, Forest and Climate Change for the Sijimalli
bauxite block with an estimated reserve of 310 million tonnes
of bauxite. We expect to commence the mining activities by
the end of the calendar year. Lanjigarh refinery expansion
from 2 MTPA to 5 MTPA remains our key focus area with full
ramp up to be completed in FY 2024-25, having produced
our first alumina from Train-1 at the end of FY 2023-24. Once
the full 5 MTPA capacity is achieved, we are also planning
to debottleneck the facility from 6 MTPA. With this refining
capacity in place, we will have effectively delinked the cost
of our smelting operations from the key driver of market
volatility, being alumina price.
Expansion activities are in full swing at Bharat Aluminium
Company Limited ("BALCO") and the 0.4 MTPA project is
estimated to start initial production during H2 FY 2024‑25.
We are also committed to our objective of producing 100%
Value Added Products (“VAP”) and the current project
pipeline is enables a significant leap forward with expanded
Billet facilities at BALCO and Jharsuguda and additional
Rolled Product capacity and capability at BALCO. This would
enable us to cater to the rapidly growing domestic demand
from sunrise sectors such as EVs, Renewable Power, Defence
& Aerospace.
For Coal, the Jamkhani coal mine which commenced
production in March 2023 is now producing at its approved
capacity. We also expect to commence production at Kuraloi
A North and Radhikapur West mines in FY 2024-25. We are
awaiting the final vesting order for Ghogharpalli coal block,
having completed all the necessary formalities. Collectively,
these mines would comfortably enable us to achieve 100%
coal security.
VZI: VZI Gamsberg Concentrator Plant: In line with our
vision of increasing MIC from 300 KTPA to 500 KTPA, Zn
Concentrator Plant with capacity of 200 KTPA is on track.
The continuous focus is on increasing Gamsberg phase-2
will further enhance the mining capability and processing
capacity to double the current volumes. The Phase 2
expansion will double the Gamsberg's annual ore capacity to
8 million tons and produce an additional 200 KTPA of MIC.
EP partner has been appointed in Q1 FY 2022-23 and the
construction partner has been appointed Q1 FY 2023-24 for
executing the civil construction for the Project. All activities
related to tendering, techno-commercial adjudication,
contract finalisation have been completed. All Major Long
lead FIMs {Ball & Sag Mill (CITIC), Crusher, Floatation, Filter
Presses and Thickeners Package (MO)} Orders placed. Major
FIM supplies such as Thickeners, Mills, Transformers have
been delivered to Project Site.
The project is expected to be commissioned by
H2 FY 2024‑25. The expansion project will promise to create
2000 – 2500 jobs during Construction and a further 800 to
1000 permanent jobs during peak operations.
VZI Iron Ore – In line with our vision on Value from Waste
creation, the iron ore project was realised for BMM. The 700
KTPA Iron Ore Plant is currently under construction on an
EPC basis & expected to be completed in H2 FY 2024-25.
This project will create a new product line (magnetite) over &
above the base metals produced by BMM.
The project will create employment for ~400 people during
peak construction and ~250 jobs during operations.
This is also major ESG initiative for VZI as BMM plant
tailings consists of an iron feed grade of ~39% which will
now be processed and converted into world class target
grade of more than 68% Fe instead of being discarded
to the Tailings dam. It will thus reduce our overall future
environmental footprint.
BMM is further investigating the expansion of project
to 2 MTPA via feed from the existing tailing dam and/
or the Swartberg ore body. This is currently in the
concept phase & parallel work is currently underway for
environmental approvals.
VZI Renewable Energy Project – The project is added to
improvise the operating cost of the Project in Gamsberg.
Gamsberg 30 MW (Phase I & Phase II – 15 MW each) Behind
the Meter Solar PV: Environmental clearance obtained for 30
MW. Other Statutory clearances are in progress, expected
to complete by June 2024. The project will be implemented
in two phases. Phase – I: PPA Closed with M/s Enernet;
Financial closure planned in June 2024. The planned COD
Phase – I is targeted by June 2025. Phase – II project
tendering in progress.
Gamsberg 50 MW Solar PV: Discussions are being held with
SEZ authorities to build 50 MW behind the meter Solar PV
project near Gamsberg Ph – II. Additional sub-station is also
being proposed to Eskom to consolidate the energy drawl for
Gamsberg and BMM. Project tendering to proceed further,
post obtaining go-ahead on land usage from SEZ authorities.
In Cairn, we remain committed to our journey of producing
50% of India’s Oil & Gas production. In-line with our vision,
we brought online >50 wells in FY 2023-24 across various
assets helping to achieve 129 kboepd in FY 2023-24. Our
R&R stands increased by 19% year on year to 1.4 billion
barrels of oil equivalent at March end. We continue to
undertake infill drilling campaigns across fields to mitigate
natural field decline. We shall continue to invest in exploration
and appraisal to add resources for further growth. We also
expanded our geographical footprint and commenced
production from Assam (Hazarigaon) and Onshore Gujarat
(Jaya field), thereby helping us diversify our asset base.
ESL: As we embark towards the growth journey of 3.2 MTPA
expansion, which includes execution of additional Blast
Furnace of 1,264 m3 supported by 0.5 MTPA Coke Ovens,
800 TPD Oxygen Plant and other auxiliaries. Railway
infrastructure upgradation from public siding to Plant head
under current expansion shall make ESL logistic friendly.
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 the successful debottlenecking of BF#3, Sinter
Plants & new LRF will take us to the capacity of 3.2 MTPA
with the lowest quartile cost & premium product portfolio.
Expected railway siding completion till exchange yard by
Q1 FY 2024‑25. Additional Hot Metal from BF#1 shall be
converted to finished products by installation of 3rd Convertor,
3rd Billet Cater and new TMT rebar mill. Anticipated
completion timeline for new steel making and rolling facilities
is Q3 FY 2026-27.
FACOR: As part of the FACOR expansion plan, we have
defined three pivotal projects: the establishment of a new
216
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
217
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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 & Share Transfer Agent and the Company from
the Depositories.
The Board of Directors did not recommend any final
dividend for the financial year ended 31 March 2024.
CREDIT RATING
Your Company is rated by CRISIL and India Rating &
Research Private Limited on its various debt instruments.
A detailed status of the Credit Ratings on various facilities
including Bank Loans, Working Capital Lines and Non-
Convertible Debentures forms part of the Report on
Corporate Governance ("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.
Vedanta recognises the unique nature of the natural
resource they deal in and hence believes in mining
with a mission and is at the forefront of the industry’s
transition towards a purpose driven future. Our operations
go beyond extracting resources, aiming to enrich lives
and create a sustainable legacy of positive change for
future generations.
We also continue to focus on effectively delivering strong
& stable cashflows and Vedanta’s large, diversified asset
portfolio, with an attractive cost position in many of its
core businesses, enables us to deliver strong margins and
achieve stable 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.
We promote diversity, equality and inclusivity, while also
investing in people development, safety and well-being.
The Company has declared the following dividends during
the year in compliance with the Dividend Distribution Policy:
Particulars
Interim Dividend – FY 2023-24
1st
2nd
Date of Declaration
22 May 2023
18 December 2023
Record Date
30 May 2023
27 December 2023
Date of Payment
Within 30 days from the date of
declaration
Rate of Dividend per share
(Face Value of ` 1 per share)
18.50
11.00
%
1850
1100
Total Payout (` in crore)
6,877
4,089
~11% dividend yield in FY 2023-24.
Return to shareholder
(` per share)
3.9
FY
2019-20
9.5
FY
2020-21
45
FY
2021-22
101.5
FY
2022-23
29.5
FY
2023-24
300 KTPA Ferrochrome Smelter (2x75MVA Furnace) Plant,
the development of an underground mine at Ostapal with
a mining capacity of 1.5 MTPA, and the setup of a new 600
KTPA Concentrator Plant at Tomka. The commencement
date for the FACOR Growth Project was established as
01 November 2024. Under this growth initiative, we have
achieved significant progress in the following projects:
We have made substantial advancements in our 300 KTPA
Ferrochrome Project. Currently, 50% of the engineering work
is completed, and our technology supplier, Metso Outotec,
has placed orders for key long-lead delivery equipment. Out
of a total of 63 packages, 34 have already been ordered. All
site preparation work is finalised, and we have completed
464 piles to date. We anticipate commencing structural
fabrication and civil foundation (RCC) work by May 2024.
Based on our current progress, we are on track to complete
the project by November 2024, as committed.
The Ostapal 1.5 MTPA UG Mine Project is also making
considerable headway. We have completed 60% of
the infrastructure design and engineering work. Portal
underground (UG) development work is scheduled to begin in
June 2024, pending receipt of the Environmental Clearance
(EC). We expect to reach the first ton of ore by Q3 2025.
For the 600 KTPA Concentrator Plant, we have selected Sino
Steel from China as our technology partner, with project
engineering work commencing in April 2024. The process of
selecting a construction partner is currently underway and
is expected to be completed by June 2024. We anticipate
breaking ground for this project in September 2024.
Iron Ore Business:
WCL: Work is under progress for ordering a 10 MTPA
concentrator plant at Bomi mines along with related
infrastructure projects for logistics and material handling at
port. Work is expected to commence by Q3 of FY 2024‑25
with a completion period of 20 months. At Mano mines,
DSO mining is planned to be operational from beginning of
FY 2024-25.
VAB: Ductile Iron Pipe Project contract has been awarded
in December 2023. EC is expected by Q1 FY 2024-25. This
will significantly improve the margin and realisation at VAB
through product diversification. Successful commissioning
of 5 KTPA Fe-Si Plant that will reduce our production cost for
value added products.
Vedanta - Nickel Business (Nicomet): In FY 2023-24, we
are able to achieve 50% of the installed production capacity
with total production and sales close to 3 kt for the year. With
the debottlenecking plans, we are targeting to achieve 10
KTPA production capacity in the next six months. Currently
holding a 50% domestic market share for Nickel Sulphate,
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. This year, we're concentrating
on tackling economic inequality, with a big focus on
acknowledging diversity and empowerment across society.
We're highlighting how inclusion is crucial for promoting
gender equality.
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. At Vedanta,
we make synergetic efforts to prioritise the concerns of
our stakeholders and we seek to balance the interests &
expectations of all stakeholders to align with the overall
organisational goals of the Company.
At Vedanta, FY 2023-24 was a year of remarkable
progress on the ESG front led by our ‘Transforming for
Good’ purpose and we are extremely pleased to apprise
that the Company has aced the Corporate Sustainability
Assessment by S&P Global for 2023 (formally known
as DJSI). Guided by the philosophy of giving back, we
positively touched more than 50 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 `54,402 crore to the public exchequer
of the various countries where we operate in FY 2023-24.
The total contribution to the exchequer is the result of
value added by different business segments across their
respective value chains and across multiple stages of the
business cycle.
The report is available on the website at
www.vedantalimited.com.
2. SUSTAINABILITY AND SOCIAL
RESPONSIBILITY
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
(“ESG”) APPROACH
TRANSFORMING FOR GOOD
Introduction:
The fiscal year 2024 was the year when we began to
consolidate the ESG framework that we set up two years
ago. The focus moved from organisation-mapping,
awareness building, and KPI setting to overseeing
implementation and achieving “steady-state.” We remain
committed to our 3 Pillars and 9 aims and are happy to
note that adequate progress is being made to achieve our
ambitious targets.
we aim to bolster its presence by venturing into the Indian EV
manufacturing sector. Furthermore, we have solidified our
position by signing a Long-Term Contract (“LTC”) for Nickel
Sulphate supply with key international EV players.
DIVIDEND DISTRIBUTION POLICY AND DIVIDEND
In terms of the provisions of Regulation 43A of the Listing
Regulations, the Company has adopted a Dividend
Distribution Policy to determine the distribution of dividends
in accordance with the applicable provisions. The policy can
be accessed on the website of the Company at
www.vedantalimited.com.
With consistent dividend as a healthy sign of our sustained
growth, our firm belief in percolating the benefits of our
business progress for widespread socioeconomic welfare
facilitates the equitable sharing of our economic value
generated. Our focus is on generating strong business
cashflows and maintaining stringent capital discipline in
investing in profitable high IRR projects. We also review
all investments (organic and acquisitions) based on our
stringent capital allocation framework in order to maximise
shareholder returns.
218
CORPORATE OVERVIEW
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FINANCIAL STATEMENTS
219
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ESG Governance:
The ESG Committee of the Board, chaired by an
independent director is the apex body to govern
the subject. The Committee, which meets every six
months, is supported by the ESG ManCom, the Group
ExCo and the Group HSE & Sustainability Function.
Additionally, 13 Communities of Practice ("COP") help
drive implementation of the various aims. The COPs are
structured at the Group and BU-level, and help engage
and integrate ESG aims across the organisation.
The Company also introduced the digital “V-Unified”
platform to streamline all of the Company’s ESG-related
data. With this, all our leaders will have “one version of
the truth”, which will enable informed decision-making
and improved ESG performance.
ESG Targets:
The Company remains focused on achieving our stated
2030 ESG targets, which will improve our business
sustainability and make us agile, future-ready, and an
employer of choice. Our 13 COPs are working towards
achieving these goals, and there is a systemic effort to
align our future business trajectory with our ESG goals.
Major Achievements:
Considerable efforts are being made in every ESG
aim that we are working on, and some significant
achievements in FY 2023-24 give confidence to the
Company that we are on the right track. These include:
1.
Transforming Communities:
•
Our flagship Nand Ghar programme has reached
6,000+ Nand Ghars, impacting 0.4 million women
and children through this initiative.
•
Our Corporate Social Responsibility programmes
that focus on improving the skill sets of
communities are helping around 1.5 million
families improve their earning potential and
achieve financial independence.
2.
Transforming Planet:
•
We are on-track to deliver on 835 MW of RE
RTC (eq) Power Delivery Agreements. We are
expecting first power from these projects in
2025. Collectively, this batch of RE will help abate
6 MMTCO2e per year.
•
5 of our operations (Hindustan Zinc Limited,
Cairn India, Iron Ore Business, FACOR mines, and
Black Mountain Mine) are now water positive.
•
100% of our BUs have an updated their
biodiversity risk assessments. These documents
will guide the implementation of the respective
Biodiversity Management Plans and align the
organisation with the expectations emerging from the
Kunming-Montreal Global Biodiversity Framework.
3.
Transforming Workplace:
•
Gender diversity among our permanent employees
has increased to 20% from FY 2020‑21 baseline of
11% which shows significant progress in making our
workforce more diverse.
•
Our women representation in decision-making
roles has increased to 22%, which means that more
women are now part of decisions being made across
the organisation.
•
Unfortunately, the Company experienced 3 fatalities
this year (FY 2022-23: 12 fatalities) and learnings
from the investigations are being implemented
across all BUs. However, overall, significant
management attention was given to identifying
and eliminating critical safety risks and early
indications point to improved safety management at
our locations.
ESG Ratings:
FY 2023-24 saw Vedanta and its Companies achieve the
pinnacle of global ESG ratings. The Company stood at #3
position among 174 global metals & mining companies in
the S&P Global Corporate Sutainability Assessment. This is
the second consecutive year of improvement. Our subsidiary,
HZL topped the listing, as did our Aluminim business (in
the Aluminium sector). This all-round improvemet is an
indication of the consistent management approach for the
ESG program.
We also saw improvement in other platforms such as
Sustainalytics and CDP (Water) while retaining our CDP rating
in climate performance and MSCI ESG Rating.
Challenges:
Safety Performance
While there are green shoots visible in safety, we remain
vigilant and continue to drive improvement. The Critical Risk
Management (“CRM”) framework and related efforts are
driving these efforts as is the improved data reporting and
analytics available to us via the V-Unified platform.
Growth Projects
Our growth projects planned from FY 2023-24 to FY 2029‑30
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 600 projects in all 3 major areas
of transformation, which will take us in the required
direction. With the help of technology and focused
approach, we are on right track to achieve leadership
position in ESG space.
BUSINESS RESPONSIBILITY & SUSTAINABILITY
REPORT
Since FY 2021-22, our Business Responsibility and
Sustainability Report (“BRSR”) disclosures have been
aligned with the regulations issued by SEBI, which
mandate compulsory disclosures for top 1000 companies
by market capitalisation in India. Your Company is
adhering to the new and updated BRSR requirements.
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. This year we are reporting on
BRSR Core and have undergone reasonable assurance
for the report.
Your Company publishes an Annual Sustainability
Report prepared in accordance with the Global Reporting
Initiative ("GRI") Standards; mapped to the United Nations
Global Compact ("UNGC"); and aligned to Sustainable
Development Goals ("SDGs"). It reports our approach and
disclosure towards triple bottom line principles - People,
Planet and Profit.
The Company shall also publish a Climate Action Report.
This year, we will be reporting on our decarbonisation
efforts for the fourth year.
As per SEBI directives on Integrated Reporting ("IR"), the
Company follows the IR 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 BRSR. Detailed information about the
Company’s sustainability performance can be found
in our Annual Sustainability Report. The Sustainability
Report of the Company shall be made available at
www.vedantalimited.com.
ENERGY CONSERVATION, TECHNOLOGY
ABSORPTION AND FOREIGN EXCHANGE
EARNINGS & OUTGO
The information on conservation of energy, technology
absorption stipulated under Section 134(3)(m) of the
Act read with Rule 8 of the Companies (Accounts) Rules,
2014, is annexed herewith as ‘Annexure A’.
The details of the Foreign Exchange Earnings and Outgo
are as follows:
(`/crore)
Particulars
Standalone
Consolidated
FY
2023-24
FY
2022-23
FY
2023-24
FY
2022-23
Expenditure in foreign
currency
4,301
5,172
5,507
7,266
Earnings in foreign
currency
32,657
31,035
45,539
49,439
CIF Value of Imports
21,492
26,437
27,640
34,137
CORPORATE SOCIAL RESPONSIBILITY
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
1,73,00,595 beneficiaries across over 1,200 villages in
FY 2023-24.
Spearheading Women and Child Development through its
flagship project ‘Nand Ghar’, a total of more than 6,044
centres across 14 states in India have been developed that
cater to more than 3.9 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 the Vedanta Delhi Half Marathon and the 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, with the zeal and
enthusiasm of the participants, Vedanta was able to commit
5 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 nutri-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,
Vedanta has launched a first of its kind, Animal Welfare
Project, The Animal Care Organisation ("TACO"). An initiative
focused 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 and
Ramgarh Visdhari Tiger Reserve to help preserve the diverse
wildlife found within the sanctuary.
Furthermore, to accelerate social growth and development,
with a well-defined roadmap and a commitment to invest
220
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
221
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Impact at a Glance
Drinking water and Sanitation
6,94,043
Beneficiaries
12
Initiatives
EDUCATION
•
72,528 PTMs
•
30 Children (3-6
years) per Nand Ghar
•
500+ Tabs
distributed and AW
workers trained
NUTRITION
•
~4.5 crore
meals facilitated
for children
•
Distributed
66 lakh Nutri
Bars, impacting
~50,000 Children
WOMEN
EMPOWERMENT
•
1.8 Lakh+ Women
linked to Govt.
Schemes/received
economic training
•
1.2 lakh increase
annually Household
income generated
HEALTH
•
57 lakh+
community
members reached
•
~72,000
Awareness Camps
Skilling
4,076
Beneficiaries
10
Initiatives
Nand Ghar
4,16,781
Women and
Children beneficiaries
Healthcare
16,99,665
Beneficiaries
32
Initiatives
Community Infrastructure
5,22,731
Beneficiaries
24
Initiatives
Children Wellbeing and
Education
1,33,16,861
Beneficiaries
31
Initiatives
Sports and Culture
1,60,920
Beneficiaries
15
Initiatives
Women empowerment
42,575
Beneficiaries
7
Initiatives
Environment and
protection
3,27,888
Beneficiaries
4
Initiatives
Livelihoods
1,14,590
Beneficiaries
18
Initiatives
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 with a safe and healthy work environment.
Our culture exemplifies our core values and nurtures
innovation, creativity, and diversity. 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 always unequivocally and firmly believed in
rewarding our 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 Awards:
•
100+ External Recognitions received in last 7 years.
•
Kincentric Best Employer Award 2023 for Best
Employer, welcoming us in the elite “Best Employer
Club.”
•
Featured in Top 10 Happiest Workplaces 2023
by Economic Times HR World along with 80 other
prominent brands.
•
Honored with Gold Medal award in Talent
Management for Vedanta Group by BrandonHall HCM
Excellence awards.
•
Arogya World Healthiest Workplace Award-
Recognised at Gold Level for Vedanta Group for best
practices in health & Well-Being 2023.
•
13 Managers recognised with Economic Times and
People Business - Great Manager Award 2023, CAIRN,
VAL-L, BALCO, Sesa Goa, Sterlite Copper, Runaya
features as Company with Great Managers 2023.
•
Recognised for ‘Significant Achievement to HR
Excellence’ by CII for BALCO, CAIRN, VAL-J, ESL,
Sterlite Copper.
People Practices
Leadership Development & 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’.
Industry Leading Talent Identification Program
Through V-Desire initiative anchored by Chairman himself,
focuses on identifying high-potential leaders by allowing
them the autonomy to pursue roles & projects aligned with
their aspirations. 117 leaders were identified through a
structured process & given their aspirational role/projects.
By empowering individuals to choose their desired career
paths, we foster a culture of engagement and fulfillment,
maximising their potential contribution to the organisation.
This approach not only nurtures talent but also cultivates
a dynamic workforce capable of driving innovation and
achieving strategic goals.
Executive Education & C-Suite Coaching
A customised executive education initiative that seamlessly
integrated both in-person and virtual learning experiences,
tailored to meet the unique requirements of our senior
leadership cadre in partnership with ISB. Crafted with
specialised modules for our executives, this program ensured
precise development aligned closely with organisational
goals. This hybrid learning model facilitated participants in
gaining invaluable insights, nurturing collaboration, fostering
innovation, and refining their strategic leadership capabilities.
Furthermore, senior CXOs were paired with internationally
acclaimed executive coaches to further augment their
professional growth journey.
Women Emerging Leaders Program
The program focuses on identifying new emerging Hi-Pos
& ‘hidden gems’ amongst our women workforce and take
disruptive actions for ensuring higher responsibility/visibility/
roles. Through the first phase, 74 leaders have been identified
and have taken up elevated roles across businesses and
functions. 49% are from Operations/Technical domains and
51% are from Enabling functions, with 30% leaders taking up
cross-Business/Function/Location roles.
V-Lead
Flagship Women Leadership Development Program to create
a strong pipeline of women CXOs & include them in decision
making bodies.
•
100+ high-potential women leaders groomed for
leadership/CXO roles.
•
25 CXOs anchoring V-Lead Leaders for personal &
professional growth.
` 5,000 crore, Anil Agarwal Foundation, the philanthropic arm
of Vedanta aims to take the mission of creating strong &
resilient communities in India ahead.
In the FY 2023-24, Vedanta has won several awards for its
community development initiatives like 11th National CSR
Summit 2023, BW Emerging Business Award, Mahatma
Award, 7th CSR Health Impact Awards 2023 – Silver Award,
Best CSR Impact Awards – 8th Edition from UBS, Best
Livelihood Initiative of the Year by India CSR Awards, Green
Eco-Friendly Initiative Award by Network 18, Governors
Scroll of Honour from Governor, West Bengal, Odisha Ideas
Excellence Award etc.
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 and long-term sustainability with efficiently
implemented 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 & community development have been designed and
implemented across more than 1,200 villages.
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•
60% V-Lead Leaders elevated to Leadership Roles in last
one year through Growth Workshops, ACTUP, APA and
other Talent Initiatives.
•
25% V-Lead Leaders rewarded with the prestigious
Chairman Award.
Complete Talent Coverage
Employees across all functions, grades, experience/seniority
levels are included in our Talent Development Initiatives. This
ensures fast-tracked career progression for all employees at
the right time.
This year apart from our Business and Technical ACT UP
programs, multiple initiatives were held focused on critical
functions such as MAS and Projects. Unique initiatives
such as Top Campus Mind, Ex-Defence Hires Workshops
and MAS ACE were executed covering new campus hires
and Cross-Functional leaders (Projects, Finance, Commercial
& Marketing etc.). Gurukul & HR are our digitally driven
Learning & Development initiative which gives internal
leaders and external experts a platform to share their
expertise and knowledge.
Inducting Best Talent to enable
Organisational Growth –
Hiring quality talent from top Universities across
specialisations and laterally from varied background
with niche experience thereby ensuring diverse and rich
talent pool.
•
Onboarded 2000+ Freshers from 150+ premier campuses,
40% gender diversity, 15% from North-East, J&K state and
Minority communities, 30% Rank Holders.
•
Vedanta Leadership Development Program (VLDP) -
Focused hiring from Top IITs & IIMs for building leadership
pipeline; roles shadowing CXOs, fast-track growth,
leadership roles during early career stages.
•
Hiring talent from Global Universities in US, UK,
Australia, UAE, Singapore etc., with focus on new-age
specialisations such as AI, Digital, Suply Chain & Analytics.
•
YUVA (Young Upcoming Vedanta Achievers) - Detailed
induction program for campus hires with CEOs, functional
heads & industry experts; business & functional sessions,
site visits, CSR activities, Campus to Corporate programs
for better understanding of the organisation.
•
V-Campus: 1-year digitally driven anchoring & learning
journey for campus hires with goal setting & tracking,
periodic pulse surveys, live experience sharing platform,
leaderboard, and Rewards & Recognitions.
•
Family Business Background: Pioneers to break the
stereotype about target talent pool and hire passionate
entrepreneurs inclined to run the business radically.
The talents onboarded are personified Entrepreneurship
champions, it being one of the core values of Vedanta.
•
Ex-Veterans: Top-notch professionals from Tri-Services
(Army, Navy, Airforce) bringing in top-class military
practices for Corporate.
•
Experts from Professional Services Firms: Onboarding
cross-functional experts to get best of the solutions for
our strategic business orientation like empowering our
business entities to run independently. Leaders from large
consulting firms with expertise in financial re-structuring
and value creation have been inducted.
•
Automobile Industry Experts: Across the world, it is
recognised that automobile industry has one of the best
supply chain practices. With a focus to develop that
expertise in our large operational units, prevent leakages
and increase overall efficiency, we sourced such best
talents for business-partner management, which is a
significant arm for us.
•
Experts from Global conglomerates: With ~30 different
nationalities in our ecosystem, we have onboarded experts
from across geographies to bring in global knowledge,
bench-marking and best-practices in the domain of
natural resources.
A detailed update on People & Culture detailing the
Company’s initiatives, recruitment strategy, hiring projects
and talent management and development is elucidated in the
Sustainability and ESG Section of the Annual Report.
EMPLOYEE STOCK OPTION SCHEME
Employee stock options are a conditional share plan for
rewarding performance on pre-determined performance
criteria and continued employment with the Company.
Our Company had launched a stocks-based incentive
scheme viz., ‘Vedanta Limited Employee Stock Option
Scheme 2016’ (“Scheme”). The Scheme was framed with a
view to reward employees for their contribution in successful
operation of the Company, 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.
On 03 November 2023, the Nomination & Remuneration
Committee ("NRC") approved the grant of Employee Stock
Options 2023 to Vedanta employees covering 42% of eligible
population. Vedanta ensures deeper coverage through
its stock option scheme, including the campus hires, to
enable young talent to grow and contribute towards overall
business performance.
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 2023 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 that
the Scheme fulfils its motive of wealth creation for employees
to achieve their financial goals and at the same time gives
them a sense of ownership.
The Scheme is periodically reviewed and benchmarked
against market best practices. 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 ESOS Trust does
not exceed 2% of the paid-up capital of the Company
as at the end of the previous financial year. Further, the
total acquisition by ESOS Trust at no time exceeded 5%
of the paid-up equity capital of the Company as at the
end of the financial year immediately prior to the year in
which the shareholders’ approval was obtained for such
secondary acquisition.
Pursuant to the provisions of SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 (“Employee
Benefits Regulations”), disclosure with respect to the ESOS
Scheme of the Company as on 31 March 2024 is available on
the website of the Company at www.vedantalimited.com.
The Company confirms that the Scheme complies with
the Employee Benefits Regulations and there have been no
material changes to the plan during the financial year.
Pursuant to Regulation 13 of Employee Benefits Regulations,
a certificate from M/s Chandrasekaran & Associates,
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, and Senior Management Personnel during
FY 2023-24 was in accordance with the NRC 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 the provision of Section 136 of the Act and Rule
5(2), the Report and the Financial Statements are being sent
to the Members of the Company excluding the statement
of particulars of employees as prescribed under Rule 5(2)
of the Rules. The said information is available for inspection
through electronic mode. Any Member interested in obtaining
a copy of the said statement may write to the Company
Secretary and the same will be furnished upon such request.
COMPENSATION GOVERNANCE PRACTICES AT
VEDANTA
Our Compensation Philosophy: People are our greatest asset
and we are committed to providing all our employees with
a safe and healthy work environment. Our compensation
philosophy has a strong linkage of reward priorities
to business priorities ensuring a uniform experience
across the 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 on operational/
financial fundamentals, social license to operate, business
sustainability, strategic objectives of resource and reserve
creation along with wealth creation for stakeholders.
Rewards Priorities
Business Priorities
Zero Harm,
Zero Waste
and Zero
Discharge
Reflect and
Enable Long
Term Business
Growth & Vision
Build a
Performance
Driven Culture
I-RECITE
at Heart
•
Zero Undesirable Talent Loss
Above Market Pay Positioning
•
Relentless Focus on Productivity & Performance
Compelling Pay Mix Basis Position in the Firm
•
It Pays to Perform
High Differentiation at 1.8 – 2.2X
•
Individualised EVP
Holistic Employee Growth
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Linkage to ESG/Safety
•
Scorecard based performance management approach:
Greater emphasis is laid on setting of objective KPIs along
with continuous performance dialogue.
•
Culture of safety and sustainability to achieve our
ultimate vision of “Zero Harm”, “Zero Waste” & “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: To
ensure and encourage sustainable business practices, the
annual bonus scheme allocates appropriate weightage to
ESG metrices like health, safety, and environment.
•
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.
•
Any fatality in the group impacts the annual bonus of all
the employees associated with the respective entity as a
negative multiplier. On the other hand, as a reinforcer, a
positive multiplier is added in vesting under LTIP to reward
efforts towards ensuring nil fatality.
•
Rewards & Recognition: Vedanta specifically recognises
contributions of employees and business partners
through its coveted Chairman Awards categories - ‘Award
for Sustainability’, ‘Best Business Partner Award’, and
‘Business Performance Award’ all of which have safety
and sustainability parameters as key evaluation metrices.
•
Employee Benefits Policy: Vedanta has introduced best-in
class employee benefits policies in recent times which
focuses on all three pillars of ESG – Environmental, Social
and Governance.
– Electric Vehicle Policy - As an organisation, we
want to ensure that 100% of our light motor vehicles
are decarbonised by 2030. In line with this goal, our
Company Car Policy involves Electric Vehicle Kicker
to incentivise employees to opt for electric vehicles.
Additionally, the policy on EV Incentive for the purchase
of electric vehicles was launched to benefit all the
employees across the organisation.
– Parenthood & Childcare Policy - With the objective
to promote Diversity, Equity & Inclusion, best in class
and progressive parenthood policy was introduced
across Vedanta catering to our women employees,
single parents and LGBTQIA+ employees. The policy
supports employee well-being by building a nurturing
environment. Few key highlights of the policy include
introduction of flexible work arrangement, sabbatical
leave, and extended coverage of adoption leaves not
only to women employees but basis primary and
secondary caregiver.
•
Governance: The Executive Compensation Philosophy
is well established & benchmarked across relevant
industry comparators. 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.
•
Voice of the employee: Involvement of bright minds from
diverse functions and best in market external 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 Compliance Officer
have been vigilant and committed to ensure structural
integrity, soundness, and highest standards of compensation
practices. Over the last few years, we have matured many
of our reward practices in an attempt to continue to raise
the bar.
•
The composition of the NRC is in compliance with the
Listing Regulations and the majority of the members are
Independent Directors. The Chairman of the Committee is
an Independent Director.
•
The members of the NRC together bring out the rich
expertise, diverse perspectives and independence in
decision making on all matters of remuneration for
Directors, Key Managerial Personnel (“KMP”) and Senior
Management Personnel (“SMP”). The Independent
Directors are actively engaged throughout the year as
members of the NRC in various people’s 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.
•
The Executive Compensation Philosophy is well
established and benchmarked across relevant industry
comparators which enables us to differentiate people
based on performance, potential and criticality in-order to
provide a competitive advantage in the industry.
•
Timely risk assessment of compensation practices is done
in addition to reviewing all components of compensation
for consistency with stated compensation philosophy:
– Financial analysis & simulation of the long-term cost of
reward plans and their Return on Investments (“ROI”).
– Provision of claw back clause as part of the ground
rules of our long-term incentive scheme for all our
leaders.
– Upper limits and caps defined on incentive pay-outs
in the event of over-achievement of targets to avoid
windfall gains.
•
We do not encourage provision of excessive perks or
special clauses as part of employee contract such as:
– No provision of Severance Pay in Employment
contracts of Whole-Time Directors (“WTD”), KMP &
SMP.
– No Tax Gross up done for executives except for
expatriates as part of tax equalisation.
– No provision of unearned incentives/unvested stock
or cash options.
– Any benefits provided to Key Executives are available
to all the employees of the Company as per the
defined Company policy.
We continue to corroborate the Internal Pay Equity
Principles, sustained attention to equity grant practices and
maintain checks & balances to confirm that the practices
are legally and ethically compliant with International,
National, and State/Regional laws.
PREVENTION OF SEXUAL HARASSMENT AT
WORKPLACE
The Company has zero tolerance for sexual harassment
at workplace and has adopted a Policy on Prevention,
Prohibition and Redressal of Sexual Harassment at
Workplace in line with the provisions of the Sexual
Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 and the Rules
thereunder for prevention and redressal of complaints of
sexual harassment at workplace.
As part of Vedanta Group, your Company is an equal
opportunity employer and believes in providing opportunity
and key positions to women professionals. The Group
has endeavored 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, cases received were
twenty five (25) out of which twenty three (23) were found
correct. Your Company has constituted Internal Complaints
Committee (“ICC”) for various business divisions and
offices, as per the requirements of the Sexual Harassment
of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013.
The details of Vigil Mechanism are set out in the Corporate
Governance Report, which forms part of this Annual Report.
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.
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’s businesses to the Board. Our management
systems, organisational structures, processes, standards,
and code of conduct together form the system of internal
controls that govern how we conduct business and
manage associated risks. We have a multi-layered risk
management framework to effectively mitigate the various
risks, which our businesses are exposed to in the course of
their operations.
The Audit & Risk Management Committee aids the Board
in the risk management process by identification and
assessment of any changes in risk exposure, review of
risk control measures and by approval of remedial actions,
where appropriate. The Committee is in turn supported by
the Group Risk Management Committee which helps the
Audit & Risk Management Committee in evaluating the
design and operating effectiveness of the risk mitigation
program and the control systems.
Major risks identified by businesses and functions are
systematically addressed through mitigating actions. Risk
officers have also been formally nominated at operating
businesses, as well as at Group level, to develop the risk-
management culture within the businesses.
The Risk Management Policy of the Company revised in
2019 covers cybersecurity as well.
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For a detailed risk analysis, you may like to refer the Risk
Management under the Performance Review section which
forms part of this Annual Report.
CYBER SECURITY
The Group has a structured framework for cybersecurity.
Each of the Business Units has a Chief Digital & Information
Officer ("CDIO") with suitable experience in Information/
Cybersecurity. Every year, cybersecurity review is carried
out by IT experts (belonging to IT practices of Big-4 firms).
Vulnerability Assessment and Penetration Testing ("VAPT")
review is also carried out by cyber experts. This practice
has been in place for several years now and has helped in
strengthening the cyber security environment in the group.
The external environment on cybersecurity is continuously
evolving and accordingly organisation takes proactive
measures to mitigate risk. The respective CDIOs are
responsible for ensuring appropriate controls are in place to
address the emerging cyber risks.
INTERNAL FINANCIAL CONTROLS
Your Board has devised systems, policies, and procedures/
frameworks, which are currently operational within the
Company for ensuring the orderly and efficient conduct of its
business, which includes adherence to policies, safeguarding
its assets, prevention and detection of frauds and errors,
accuracy and completeness of the accounting records and
timely preparation of reliable financial information. In line
with best practices, the Audit & Risk Management Committee
and the Board reviews these internal control systems to
ensure they remain effective and are achieving their intended
purpose. Where weaknesses, if any, are identified as a
result of the reviews, new procedures are put in place to
strengthen controls. These controls are in turn reviewed at
regular intervals.
The systems/frameworks include proper delegation of
authority, operating philosophies, policies and procedures,
effective IT systems aligned to business requirements,
an internal audit framework, an ethics framework, a risk
management framework, and adequate segregation of duties
to ensure an acceptable level of risk. Documented controls
are in place for business processes and IT general controls.
Key controls are tested by entities to assure that these are
operating effectively. Besides, the Company has also adopted
an SAP GRC (Governance, Risk and Compliance) framework
to strengthen the internal control and segregation of
duties/access.
The Company has documented Standard Operating
Procedures ("SOP") for procurement, project/expansion
Management Capital Expenditure, Human Resources, Sales
and Marketing, Finance, Treasury, Compliance, Safety, Health,
and Environment ("SHE"), and manufacturing.
The Group’s internal audit activity is managed through the
Management Assurance Services ("MAS") function. It is an
important element of the overall process by which the Audit
& Risk Management Committee and the Board obtains the
assurance on the effectiveness of relevant internal controls.
The scope of work, authority and resources of MAS are
regularly reviewed by the Audit & Risk Management
Committee. Besides, its work is supported by the services of
leading international accountancy firms.
The Company’s system of internal audit includes covering
monthly physical verification of inventory, a monthly review
of accounts and a quarterly review of critical business
processes. To enhance internal controls, the internal audit
follows a stringent grading mechanism, focusing on the
implementation of recommendations of internal auditors.
The internal auditors make periodic presentations on audit
observations, including the status of follow-up to the Audit &
Risk Management Committee.
The Company’s internal financial control 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 Organisations of the Treadway
Commission ("COSO") framework and requirement of Act.
Through the internal financial control framework in place the
Audit & Risk Management Committee and the Board also
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
EXTERNAL
STRATEGIC
FINANCIAL
OPERATIONAL
IDENTIFY
EVALUATE
MONITOR
MITIGATE
GROUP RISK MANAGEMENT FRAMEWORK
risk. Besides it created to provide reasonable, but not
absolute assurance against material misstatement or loss.
Since the Company has strong internal control systems
which are further strengthened by periodic reviews as
required under the Listing Regulations and ICOFR compliance
by the Statutory Auditors, the Management recommend to
the Board that the Company continued with strong Internal
Financial Controls.
There have been no significant changes in the Company’s
internal financial controls during the year that have materially
affected or are reasonably likely to materially affect its
internal financial controls, other than as mentioned in the
“Audit Report and Auditors” section to this report.
There are inherent limitations to the effectiveness of any
system of disclosure controls and procedures, including
the possibility of human error and the circumvention or
VIGIL MECHANISM
The Company has in place a robust vigil mechanism
for reporting genuine concerns through the Company’s
Whistle-Blower Policy. As per the policy adopted by various
businesses in the Group, all complaints are reported to the
Director – Management Assurance, who is independent
of operating management and the businesses. In line
with global practices, dedicated email IDs, a centralised
database, a 24X7 whistle-blower hotline and a web-based
portal have been created to facilitate receipt of complaints.
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.
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.
“Internal Financial Control are 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 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 exist for effective conduct of business, delegation of
authority is formally documented and implemented, organisation structure is
defined, and segregation of duties and responsibilities are maintained.
Policies
and procedures
•
Ownership and rights to assets are maintained with the Company.
•
The Company has implemented processes for safeguarding of assets.
Safeguarding
of assets
•
Proactive anti-fraud controls/fraud risk management framework has
been implemented.
Prevention and
detection of frauds
and errors
•
All transactions occurred during a specific period have been recorded.
•
Assets, liability, revenue and expense components are recorded appropriately.
Accuracy and
completeness of the
accounting records
•
Financial items are properly described, sorted and classified.
•
Financial information is provided as per the timelines defined by the
relevant stakeholders.
Timely preparation
of reliable
financial information
1
2
3
4
5
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The details of this process are also provided in the Corporate
Governance Report and the Whistle-Blower Policy is available
on the Company’s website at www.vedantalimited.com.
MANAGEMENT DISCUSSION AND ANALYSIS
The Management Discussion and Analysis Report for the
year under review, as specified under Regulation 34 read with
Schedule V of Listing Regulations is presented in a separate
section, forming part of this Annual Report.
5. INNOVATION, DIGITALISATION AND
TECHNOLOGY
INNOVATION, DIGITALISATION AND TECHNOLOGY
At Vedanta, over the past few years, we have taken a
tech-forward strategy which aims to boost operational
effectiveness and productivity, fully embracing digitalisation,
and fostering a culture of digital inclusion among employees
while cultivating our start-up ecosystem. In this digital first
era, our goal is to be at the forefront of smart & intelligent
manufacturing, each of Vedanta's businesses has embarked
on their own transformational journey towards digitalisation
and innovation.
Vedanta’s approach towards digitalisation has been focused
towards setting up the infrastructure which enables us
to introduce advanced technologies to further streamline
our operations, this to an overall effect has led to data-
based decision making at every level, increasing business
intelligence, automation & remote operations in some cases.
In FY 2023-24, through digital initiatives, we are achieving
tangible gains in terms of volume upliftment & cost reduction
using Internet of Things (“IoT”) & Artificial Intelligence (“AI”)
while also focusing on business excellence, AR/VR based
learning & ESG. Key Initiatives that were implemented in
current fiscal year include Advanced Process Control for
Artificial Lifts at Cairn Oil & Gas, Tele Remote Loading at
Hindustan Zinc Limited, Blast Furnace Digital Twin at ESL
Steel, AI based Simulator for Cold Rolling Mill at BALCO
and we launched our digital platform for integrated security
information management system across the group.
Our focus with Vedanta Spark is to bring right startups who
can help us increase volume, reduce cost and leverage
emerging innovations in the ESG space. We have gained
great traction with startups through Vedanta Spark 3.0 to
introduce new innovations across the length & breadth of the
Company. So far, we have 83 startups with 158 engagements
across the group. Furthermore, we are working towards
enabling investments in startups that are proven and have
a high potential for growth. We will have an Investment
Committee with group leaders and external experts who will
choose the right startups for us to invest in that will help
increase the overall value.
Overall, our focus lies in bringing a culture change to enable
all of functions to use the advancements in technology
in day-to-day operations. With our strong roadmap
for the upcoming years, we will always look towards
expanding our footprint across the group to enable better
delivery of tomorrow’s metals & energy in an effective &
sustainable way.
POLICY AND ADVOCACY
Vedanta’s initiatives are essentially premised on its ‘Nation-
First’ philosophy. Vedanta’s advocacy aims to create an
enabling regulatory framework to fulfil the resource needs
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
of doing business, financial reforms and other matters
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 & DEVELOPMENT
Research & Development (“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 of customers. Vedanta invests a significant
amount of resources into R&D to improve the quality of
its products and services, reduce costs, and increase
efficiency. R&D helps the Company to differentiate itself from
competitors and maintain its market position.
In Aluminium business, in the pursuit of innovation and
advancement within the Aluminium Business, Vedanta has
remained steadfast in its commitment to pursuing ambitious
R&D. Our R&D team has been instrumental in delivering
pioneering solutions across various domains, including
new value-added product development, waste utilisation,
bauxite beneficiation, and process optimisation. These efforts
reflect our dedication to fostering sustainable growth and
reinforcing our position as a market leader.
In collaboration with CSIR-NML, Jamshedpur, we have
embarked on two innovative projects: Development of a High
Temperature Low Sag (“HTLS”) alloy wire rod conductor for
high performance power transmission, and an Ultra-high
Strength (>400 MPa UTS) and weldable aluminium alloy
catering to the requirements of Defense, Aerospace, Marine,
and Electric Vehicles (“EV”) segments to enable substitution
of material currently imported into India. Concurrently, our
collaboration with IIT Kharagpur has yielded two exciting
ventures. The first one involves the development of a High
Temperature Resistance Cast Grade Aluminium Alloy
tailored for the automotive sector, while the second one
focuses on the production of an Ultra-high-Purity Aluminium
variant (targeting 99.99% purity) specifically designed for
applications in Aerospace, electronics, and areas where
cathodic protection is required.
In the Financial Year 2023-24, Vedanta Aluminium
embarked on a strategic initiative to explore computer-aided
engineering solutions, with the aim of positioning Industry
4.0 at the forefront of its operations. This endeavour is
anticipated to drive down production costs and enhance
profitability significantly. Utilising techniques such
as the Discrete Element Method in conjunction with
computational fluid dynamics and particle breakage
modelling, efforts have been directed towards enhancing
ball mill throughout at the Lanjigarh refinery, previously
identified as a bottleneck, by approximately 10%.
In alignment with the advent of Industry 4.0, AI/machine
learning (“AI/ML”) and Artificial Neural Network (“ANN”)
algorithms are being harnessed to manage Hydrogen
Fluoride generation within smelters, with the potential to
reduce ALF3 consumption (which is a key raw material
and cost component). Moreover, the exploration of
process modelling tools aims to optimise new business
opportunities, ensuring sustained competitiveness in both
domestic and international markets.
Vedanta Aluminium has pioneered a patented process
to reduce bauxite residue, known as red mud, in alumina
refining by an impressive 30%. This breakthrough extracts
iron from the ore prior to digestion, increasing alumina
yield, and reducing organic content, significantly boosting
resource efficiency and reducing energy consumption
during refining. Developed in collaboration with the
esteemed Indian Institute of Technology Kharagpur
("IIT KGP") and with support from the Lanjigarh facility,
this advancement promises to enhance operational
excellence and sustainability within Vedanta while
positively contributing a solution that could be applied
across the global aluminium industry.
In waste to wealth segment, we have taken up a project
on the recovery of high-purity (>99%) graphite from
spent pot liner first cut and shot blast dust, as well as the
synthesis of ALF3 from dross slag. Additionally, efforts
are underway to devise processes for the utilisation of
spent pot liner second cut, further maximising resource
efficiency and waste minimisation.
A pivotal focus area of our R&D initiatives has been to
find economic ways to utilise bauxite residue or red mud.
Collaborative efforts have been initiated with industrial
partners, CSIR laboratories, and the JNARDDC in Nagpur
to develop comprehensive technologies for the holistic
utilisation of red mud. These endeavours aim to extract
valuable metallic components and effectively manage
remaining residue, contributing to both environmental
sustainability and resource optimisation. Furthermore, we
have developed innovative recipes for incorporating red
mud in various applications, including partial substitution
in sand, road sub-layers, and the production of red mud-
based geopolymer concrete.
In conclusion, Vedanta Aluminium's R&D endeavours in
FY 2023-24 have yielded remarkable results, including the
filing of five patents. These patents cover groundbreaking
innovations such as pre-processing of bauxite to minimise
red mud generation, recovery of high-purity graphite from
spent pot liner and shot blast dust, the synthesis of AlF3
from dross slag, development of a lead and tin-free bismuth
Aluminium-based alloy (6082 highly machinable alloy), and
the creation of fast-setting geopolymer concrete utilising
red mud and fly ash. These achievements underscore our
commitment to driving innovation and sustainability within
the aluminium industry, establishing Vedanta Aluminium as a
trailblazer in the field.
Hindustan Zinc Limited maintains a laser focus on achieving
business outcomes. This commitment is reflected in the
initiation of research activities across several key areas,
including advanced process monitoring, digital data analysis,
and process simulation. Recognising the evolving nature of
our ore, we continuously explore ways to enhance mineral
processing and smelting practices for superior recovery
and efficiency. Collaboration remains a cornerstone of our
innovation process, fostering partnerships with world-class
universities, institutes, technology providers, and startups.
Significant Commercial Implementations of this year include
deployment of new silver promoters to improve silver
recovery and reduce costs. Continuing in our ESG efforts,
we have deployed non-hazardous pyrite depressants at our
sites. 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 focused projects include:
•
Implemented a low-capex process for jarosite
modification for its use in cement industry.
•
Increase the current efficiency of Zinc Electrowinning
process and improve quality of HG grade Zinc in the
manually operated zinc cell house. Plant trials are
in progress.
•
Improvement in Zinc recovery from MCTP and coke
recovery from its slag. Trial tests have been conducted at
the plant, and process is under implementation.
•
Developed online sensors for measuring O2 level in the
outlet gases from zinc roasters.
•
Developing online control systems to use molten metal
level measurements for reducing the variations in ingot
thickness & improve customer satisfaction.
•
Developed flotation reagent to improve lead and silver
recovery at Sindesar Khurd Mines. Plant trials are
in progress.
In Copper business
1.
Through crucial R&D, the unit has developed a new
process to recover precious metals from anode slime
and this plant has been successfully commissioned
and ramped up. It results in smooth PMR operations at
Fujairah unit and additional revenue.
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2.
In-House process designing for Selenium and Tellurium
recovery in collaboration with Council of Scientific
and Industrial Research, Govt of India to ensure 100%
realisation of minor metals.
3.
With respect to quality improvement, the unit is doing
intensive R&D to increase the purity of cobalt sulphate
to be in comparison to battery grade.
4.
In the path of creating wealth from waste or residue,
the unit is targeting an additional ` 250 crore revenue
from Minor Metal Business by FY 2025-26 through R&D
and Innovation.
5.
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.
6.
Artificial Intelligence & Machine Learning 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.
In ESL, R&D vertical has been working to deliver innovative
solutions in several key areas, including new product
development, customer delight and operational excellence.
1.
New Product Development: R&D vertical developed
seventeen (17) new grades, tailored for specific
applications like fasteners, screws, steel wool springs,
crimped wire, wire ropes, auto cables, etc. Advancing
commissioning of a new LRF to extend capabilities into
alloy-grade production.
2.
Packaging Efficiency Enhancement: Developed a
more efficient HDPE tubular packaging at the Wire Rod
Mill from conventional HDPE overlapping packaging.
This strategic shift doubles packaging capacity while
utilising the same resources. Beyond aesthetics, the
method ensures fully sealed enclosure for wire rod coils,
effectively safeguarding against dust and moisture
infiltration, thus enhancing product integrity and
customer satisfaction.
3.
Innovative Strapping and Compacting System:
Successfully introduced a state-of-the-art strapping
and compacting system in collaboration with Sund
Birsta. This system employs metal straps as a superior
alternative to traditional binding wires, offering
increased surface contact for enhanced holding
strength. Designed for export-oriented packaging, it
minimises the risk of coil binding loosening during
transit, ensuring products reach customers in
optimal condition. Additionally, the system efficiently
eradicates compactor-related bottlenecks, reducing
delays, thus enhancing customer satisfaction through
timely deliveries.
4.
Ferro Alloy Optimisation: Developing Ferro Alloy
Optimisation Model to calibrate the quantity of ferro
alloy required for precise chemical compositions.
Aims to reduce specific consumption of ferro alloy by
providing accurate predictions and recommendations
for alloy addition, enhancing production precision and
resource efficiency.
5.
Innovation in Quality Enhancement: Through in-house
innovative solutions and initiatives implemented at
our Steel Melting Shop and Rolling Mills, significant
improvements have been achieved in the sigma level of
a key quality parameter, namely tensile strength, in our
finished goods such as wire rods and TMT bars.
6.
Digitalisation for Operational Excellence: In the pursuit
of Operational Excellence, we embark on transformative
digitalisation initiatives throughout the year. Some of
these are:
I.
Computer vision-based particle sizing analysis on
Blast furnace conveyor belts for providing real-time
insights on incoming coke and sinter materials
before it is fed into the furnace for efficient
BF operation.
II.
Sinter Green Mix Optimiser Model to provide
recommendations on optimal green mix at
lowest cost required to achieve desired sinter
chemical properties.
III.
Integration of LIMS (Laboratory Integrated
Management System) with Historian to display
real-time data analysis to the process team.
IV.
Through the 'Smart Logistics Project', ESL has
successfully automated logistics processes,
reduced both inbound and outbound vehicle
turnaround time and freight rates reduction. The
project was executed in two phases, incorporating
functionalities like auto shipment and invoicing,
RFID integration, and GPS tracking. Moving
forward, ESL Steel aims to fully digitise its logistics
operations for continued operational excellence.
In Iron & Steel sector
Coke:
Innovation:
Sesa Coke Gujarat team constructed a state-of-the-art
small scale pilot coke oven facility at Bhachau location. The
pilot oven has been ingeniously developed and constructed
using refractory bricks to accurately simulate a commercial
coke oven. This cutting-edge facility serves as a crucial
asset enabling us to expand our coal basket and optimise
blend costs. With rigorous testing and inclusion of novel
coal varieties from across the world we could achieve zero
% PHCC in manufacturing of LAM coke to cater various OEM
and retail market demand.
Excellence:
Team at Sesa Coke has carefully re-scheduled sequencing
of coke oven battery operation and optimised operating cycle
hours. This has enabled the team to operate entire coke
making process into reduced shift operation, which further
enabled team to reduce 20% reduction in manpower and
optimise conversion cost.
Care:
Team has successfully conducted trials by heating re-
commissioned coke ovens using bio diesel. This on-site
testing trials were very encouraging and demonstrated
a significant reduction in emissions, by around 70% as
compared to HSD. This will further hold tremendous future
potential in adopting greener and cleaner fuels and achieving
cost advantages.
Value Added Business ("VAB")
At VAB, our BF3 which is a modern Blast furnace used to
operate at 580 Kg/THM with PCI rate of 160 Kg/THM. We
had done modification in our system like increased tuyere
diameter, modified chute length of BLT system, upgraded PCI
system to inject higher PCI. This has resulted in achieving
benchmark fuel rate of 550 Kg/THM with PCI rate of 170 Kg/
THM. All this modification is done in house with complete
brainstorming, ideas generation, technical discussions and
final implementation on site. For the same size of furnace,
the industry benchmark is 540-550 Kg/THM and PCI rate of
170-180 Kg/THM. Further, we are planning to reduce it to 540
with 200 Kg/THM PCI.
In FACOR, we're advancing our operational efficiency through
strategic technological integration:
•
We have implemented Waste Heat Recovery systems in
our furnaces, that captures and repurposes discarded
heat to pre-heat our coke. This not only conserves energy
but also optimises the efficiency of our furnaces.
•
To minimise downtime and enhance equipment
reliability, we have implemented Smart Predictive
Maintenance systems. Utilising AI technology, these
systems proactively identify potential equipment failures,
enabling us to prevent breakdowns before they occur and
significantly reduce maintenance-related delays.
•
We are also working on Machine Learning based
techniques to refine our charge mix. This approach uses
data-driven insights to determine the optimal combination
of raw materials, ensuring we achieve better productivity
along with our targeted KPIs with greater precision.
In Cairn, focus is to enhance production, improved
operational efficiencies and reduced exposure to risk through
R&D vertical.
•
In a pioneering step, Cairn has migrated its entire
petro-technical data and computing to cloud platform.
Application of high-power cloud computing has fast
tracked timelines by ~30% in geophysical velocity
modelling for exploration prospectivity of Rajasthan and
by ~80% in seismic inversion for Bhagyam. Reduction
of runtime has increased capability to run multiple
iterations within stipulated timeline and help de-risk
exploration studies.
•
Micro-seismic monitoring technology is being
applied in Mangala field in Rajasthan for studying
production and injection related responses in the field,
which is providing valuable insights for the reservoir
management. Microseismic can help in optimising
injection strategies, maximising production and R&R,
and ensuring safe and sustainable operations in
the field.
•
Advanced Full Waveform Inversion ("FWI") technology
was evaluated in east coast offshore exploration
block for improving subsurface seismic imaging and
identifying hydrocarbon sweet spots. Additionally,
this technology utilises efficient workflows, which
cuts the timeline of processing significantly. With
this encouraging Proof of Concept ("POC") result,
FWI technology is being tested on pilot area for
implementation in Kg deepwater block.
•
Innovative fusion of two distinct technologies, Full
Tensor Gradiometry ("FTG Gravity") and Reverse
Time Migration (Seismic RTM Processing), for better
imaging of exploration structures in difficult terrains
of Assam. This integration approach harnesses the
complementary strengths of FTG and RTM, and can
improve seismic imaging and reduce exploration risk in
geological complex thrust belts of Assam area
•
As part of digitalisation, we have embarked on the
journey of implementing “Process Digital Twins” for
real-time monitoring of our processing facilities and for
implementing recommendations to increase operational
efficiency, reduce fuel gas consumption by ~15% &
reduce gas flaring by ~40%; thereby also translating to
lower GHG emissions.
•
Cairn is actively working on tapping into the elaborate
ecosystem of 1800+ Global Startups via the Vedanta
Spark (Startup) initiative to pilot and subsequently
scale-up unique technology deployments that are cost-
effective and offer agile delivery. A few such projects
include utilising drones for land surveys and asset
inspections, cost-effective IIOT based sensorisation for
equipment health monitoring, leveraging the power of
Generative AI to mine knowledge from Well Completions
reports, legal documents etc.
6. INVESTOR RELATIONS ("IR")
Vedanta prioritises fostering open communication and
active engagement with its investors. Vedanta has a
dynamic IR function that engages both domestic and
international shareholders, actively seeking their input.
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This function is dedicated to not only meeting but exceeding
global IR benchmarks. It is committed to articulating
Vedanta’s distinctive investment proposition and its potential
for value generation to the capital market community,
ensuring the Company’s shares are valued fairly.
Increased Shareholder Engagement: Our IR team connects
with shareholders via diverse channels such as personal
meetings, conferences, and investor and analyst gatherings,
conveying the Company’s strategic vision, potential risks, and
opportunities, as well as new macroeconomic and company-
specific developments. By doing so, we diminish information
gaps and foster a favourable perception of Vedanta. Our
engagement initiatives span quarterly earnings discussions,
Investor/Analyst Days, site tours of principal operations, and
participation in sell-side conferences, as well as individual
and group meetings. On special occasions, these interactions
are graced by Vedanta’s senior leadership, including the
Promoters, CFO, and business CXOs, earning high regard
from shareholders and analysts alike.
Streamlining Shareholder Communication: Shareholders
are encouraged to reach out to Vedanta anytime via the
contact details provided on our website for any queries,
concerns, inquiries, or feedback for the Company. Feedback
and insights from our shareholders and analysts are swiftly
relayed to the Board by the Chairman, the Independent
Directors, the KMPs, the Head of Investor Relations,
and the Company Secretary. This continuous dialogue
empowers our board and senior management to deeply
understand shareholder perspectives and address their
concerns effectively.
Setting New Benchmarks in Shareholder Disclosures:
Vedanta has established exemplary reporting standards
with comprehensive and transparent disclosures regarding
the Company’s operational and financial performance. We
pioneered our first Integrated Report in FY 2017-18 and
have consistently published it since. The Integrated Report
offers a visionary outlook, detailing how Vedanta’s strategy,
governance, and performance culminate in value creation.
Additionally, our digital, interactive microsite on the Vedanta
corporate website enriches the shareholder experience,
providing an engaging platform for timely updates,
supplementing the communication delivered through annual
reports and quarterly results. Vedanta’s commitment to
excellence was recognised when we were awarded the
‘Platinum Winner’ in the $10+ billion revenue category at
the LACP Spotlight Awards for our FY 2022-23 Integrated
Annual Report.
Commitment to Stakeholder Development: Vedanta remains
steadfast in its dedication to holistic development and
contributing positively to all stakeholders. Our reporting
suite offer comprehensive insights into the ESG and
investor‑centric initiatives undertaken by Vedanta, benefiting
our employees, shareholders, investors, business partners,
civil society, local communities, and the nation at large.
KEY INITIATIVES WITH RESPECT TO VARIOUS
STAKEHOLDERS
The Company maintains its focus on all round development
and contribution towards its stakeholders. The Integrated
Report provides detailed information on the ESG and
investor-focused 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
The essence of Corporate Governance is about maintaining
the right balance between economic, social, individual
and community goals. Your Company is committed to
maintaining the highest standards of corporate governance
in the management of its affairs and ensuring its activities
reflect the culture we wish to nurture with our colleagues and
other stakeholders.
The Company is focused on enhancement of long-term
value creation for all stakeholders without compromising on
integrity, societal obligations, environment and regulatory
compliances. Our actions are governed by our values
and principles, which are reinforced at all levels of the
organisation. These principles have been and will continue to
be our guiding force in future.
As a Company with a strong sense of values and
commitment, we believe that profitability must go hand in
hand with a sense of responsibility towards all stakeholders.
We believe Corporate Governance is not just a destination,
but a journey to constantly improve sustainable value
creation. Our disclosures seek to attain the best practices
in international corporate governance, and we constantly
endeavour to enhance long-term shareholder value. Our
Corporate Governance Report for FY 2023-24 forms part of
this Annual Report.
DIRECTORATE, KEY MANAGERIAL PERSONNEL AND
SENIOR MANAGEMENT PERSONNEL
The Board of Directors is the apex body constituted
by shareholders for overseeing the Company’s overall
functioning. The Board provides strategic direction and
leadership and oversees the management policies and their
effectiveness looking at long-term interests of shareholders
and other stakeholders.
The Board, inter alia, reviews and guides corporate strategy,
major plans of action, risk policy, annual budgets, acquisitions
and divestments. It also monitors the implementation and
effectiveness of governance structures and driven by its
guiding principles of Corporate Governance; the Board’s
actions endeavor to work in best interest of the Company.
The Directors hold a fiduciary position, exercises
independent judgement, and play a vital role in the
oversight of the Company’s affairs. Our Board represents a
tapestry of complementary skills, attributes, perspectives
and includes individuals with financial experience and a
diverse background.
In line with the recommendation of SEBI and our relentless
endeavor to adhere to the global best practices, the
Company is chaired by Mr. Anil Agarwal, Non-Executive
Chairman with effect from 01 April 2020.
Directors
Appointments
•
During FY 2023-24, basis the recommendation of the
NRC and approval of the Board, Mr. Arun Misra (DIN:
01835605) was inducted as an Executive Director of the
Company with effect from 01 August 2023 to 31 May
2025. The same was approved by the shareholders of
the Company through postal ballot resolution on 25
August 2023.
A brief profile of Mr. Arun Misra is as follows:
Arun Misra is also the CEO & Whole Time Director of
Hindustan Zinc Limited ("HZL"), a subsidiary of the
Company. He was appointed as Deputy CEO, HZL on
20 November 2019, and was elevated to CEO & WTD, HZL
with effect from 01 August 2020.
Mr. Misra is the 1st ever Indian Chairperson of the
International Zinc Association. He is recently elected as
Chairman of CII Rajasthan state council and previously
served as the Vice Chairman. He is also the Vice
President of the Indian Institute of Mineral Engineers. He
was awarded 'CEO of the Year' in the ‘Business Leader
of the Year’ awards. He is also recognised in the 22nd
position of the Top 30 CEOs of India by Startup Lanes.
Detailed profile of Mr. Misra is provided in the earlier
section of the Annual Report. This is in accordance with
the Companies (Accounts) Amendment Rules, 2019
notified to hold effect from 01 December 2019.
Re-appointments
Pursuant to the recommendation of the NRC, the Board
approved the below re-appointments during the year:
•
Ms. Padmini Sekhsaria (DIN: 00046486) (Independent
Director) for a second and final term of 02 years effective
from 05 February 2023 to 04 February 2025;
•
Mr. Dindayal Jalan (DIN: 00006882) (Independent
Director) for a second and final term of 03 years effective
from 01 April 2023 to 31 March 2026;
•
Ms. Priya Agarwal Hebbar (DIN: 05162177) (Non-Executive
Director) for a further period of 05 years from 17 May 2023
to 16 May 2028; and
•
Mr. Navin Agarwal (DIN: 00006303) (WTD designated as
Executive Vice-Chairman) for a further period of 05 years
from 01 August 2023 to 31 July 2028.
The re-appointment of Ms. Padmini Sekhsaria and Mr. Dindayal
Jalan was approved by the shareholders through postal ballot
resolution on 28 April 2023, and the re-appointment of Ms. Priya
Agarwal Hebbar and Mr. Navin Agarwal was approved by the
shareholders in the AGM held on 12 July 2023.
Cessations
Mr. Sunil Duggal superannuated on completion of his tenure
as the Whole-Time Director & CEO with effect from close of
business hours on 31 July 2023.
Key Managerial Personnel
Appointment/Cessations
Mr. Ajay Goel ceased to be Acting Group Chief Financial
Officer of the Company with effect from close of business
hours on 09 April 2023.
Further, basis the recommendation of Audit & Risk
Management Committee and NRC and approval of Board,
Ms. Sonal Shrivastava was appointed as the Chief Financial
Officer (“CFO”) & KMP of the Company with effect from 01
June 2023.
Ms. Sonal tendered her resignation from the position of CFO
& KMP of the Company with effect from close of business
hours on 24 October 2023, due to some personal reasons.
Consequently, as part of Vedanta’s structured re-hiring
program called “Gharwapsi” and basis recommendations of
Audit & Risk Management Committee and NRC and approval
of Board, Mr. Ajay Goel joined back the Company as the CFO
& KMP of the Company with effect from 30 October 2023.
A brief profile of Mr. Ajay Goel is as follows:
Ajay Goel was appointed as the CFO of Vedanta on
30 October 2023. He joined the Company in March 2021 as
Deputy CFO and assumed charge as Acting CFO in October
2021. Ajay brings rich multinational experience with global
companies in FMCG and Industrial sectors namely GE,
Nestle, Coca Cola and Diageo. As CFO, Ajay is responsible
for all aspects of finance, including corporate governance,
treasury and funding, investors relations, Financial Planning
& Analysis, Accounting and Consolidation, Secretarial, and
Risk Management. He also drives business performance
monitoring and reporting with a focus on benchmarking and
analytics. Ajay is a national rank holder both as Chartered
Accountant and Company Secretary and a commerce
graduate from St. Xavier’s College, Calcutta University.
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Senior Management Personnel
Appointments/Cessations
The Board, on the basis of the recommendation of the NRC,
in its meeting held on 04 August 2023, appointed Mr. John
Slaven, CEO – Aluminium Business, as the SMP of the
Company with effect from 03 October 2023.
A brief profile of Mr. John Slaven is as follows:
Mr. John spearheads key initiatives towards unlocking the
full potential of Aluminium Business to deliver 3 MTPA of
integrated volume and being amongst the top 3 aluminium
players in the world. He leads the overall strategy of the
Aluminium Business, including development of strategic
alliances to fast-track business delivery, as well as Marketing
Strategies, ESG and Green Aluminium Strategy. Mr. John is a
reputed global leader who brings 34 years of rich experience
in metal & mining sector. He has worked across the entire
aluminium value chain in exploration, growth projects,
operations, sales, and marketing.
Detailed profile of Mr. John Slaven is provided in the earlier
section of the Annual Report.
Further, the Board of Directors of the Company, on the
recommendation of the NRC, approved the appointment
of Mr. Nicholas John Robert Walker (“Nick”), Former CEO –
Cairn Oil & Gas, as SMP in the meeting held on 27 January
2023. His designation had been changed and he ceased to
be CEO – Cairn Oil & Gas with effect from 04 August 2023.
The KMP and SMP, similarly, comprises of multifarious
leaders with each member bringing in their key proficiency in
different areas aligned with our business and strategy.
A comprehensive update on the change in the Directorate,
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. Anil Agarwal (DIN:
00010883), Non-Executive Chairman of the Company, is
liable to retire by rotation at the ensuing AGM and being
eligible, offers himself for re-appointment. Based on the
performance evaluation and recommendation of the NRC,
Board recommends his re-appointment.
Details of re-appointment as required under Listing
Regulations, are provided in the AGM Notice.
BOARD AND COMMITTEES
The Board of Directors is at the core of our corporate
governance practice and oversees and ensures that the
Management serves and protects the long-term interest of
all our stakeholders. We believe that an active, well-informed
and independent Board is necessary to ensure the highest
standards of corporate governance. The Board places
great importance on ensuring these key themes continue
to be appropriate for the businesses and markets in which
we operate around the world, while being aligned with
our culture.
The Board is supported by the activities of each of the Board
Committees which ensure the right level of attention and
consideration are given to specific matters. Accordingly,
the Committees focus on specific areas and take informed
decisions within the framework designed by the Board and
make specific recommendations to the Board on matters in
their areas or purview. Each of the Committees has terms of
reference under which authority is delegated by the Board. At
present, the Company has the following Board Committees
which ensures greater focus on specific aspects of Corporate
Governance and expeditious resolution of issues of
governance as and when they arise.
A detailed update on the Board, its committees, their composition, terms and reference, meetings held during FY 2023-24 and
the attendance of each member is detailed in the Corporate Governance Report.
Statutory Board Committees
Other Committees
ESG Committee
Committee
of Directors
Share & Debenture
Transfer Committee
Audit & Risk
Management Committee
Nomination &
Remuneration Committee
Corporate Social
Responsibility Committee
Stakeholders’
Relationship Committee
BOARD EFFECTIVENESS
Familiarisation Program for Board Members
Your Company has a structured programme for the new
Board members so as to enable them to understand the
nature of the industry in which the Company operates, its
management and its operations. They are also familiarised
with Company’s organisational and governance structure,
governance philosophy/principles, code of conduct & key
policies, Board’s way of working & 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 of your Company is highly committed to ensure
transparency in assessing the performance of Directors.
Pursuant to the provisions of the Act and the Listing
Regulations, the annual evaluation of the performance of
the Board of Directors, its Committees, Chairman, Vice-
Chairman, Directors, and the governance processes that
support the Board’s work was conducted.
As a part of governance practice, the Company, had engaged
a leading consultancy firm, to conduct the Board 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 senior
leadership. The Board was satisfied with overall performance
& 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. It was noted
that the Board as a whole is functioning as an effective and
cohesive body.
BOARD DIVERSITY AND INCLUSION
Your Company believes that an organisation is a collective
representation of people coming with individual differences in
thoughts, personality, unique capabilities and talent that they
bring to work. It is an understanding that each individual is
unique, and a recognition of our individual differences, so that
each and every one feels important, respected, and engaged
as we assimilate people with differences including but not
limited to nationality, geography, ethnicity, gender or other
ideologies. While we strongly appreciate diversity in all forms,
achieving gender parity is a priority for the Company.
As part of building a diverse workforce, it is critical that
membership of the Board includes a diverse mixture of skills,
professional & industry backgrounds. A diverse Board will
include and make good use of the differences in the skills,
knowledge, industry experience, background, race, gender
and other qualities of the individual members as a whole.
It will have a range of views, insights, perspectives, and
opinions to improve its decision-making and benefit the
Company’s stakeholders. In line with the aforementioned
approach, the Company introduced the Diversity, Equity &
Inclusion Policy in August 2023.
In view of the above, your Company has adopted the Board
Diversity Policy and Diversity, Equity & Inclusion Policy
that sets out its approach to diversity. The Policies can be
accessed at www.vedantalimited.com.
Additional Details on Board Diversity and the key attributes
of the Board Members are explicated in the Corporate
Governance Report forming part of this Annual Report.
POLICY ON DIRECTORS’ APPOINTMENT &
REMUNERATION
The Nomination & Remuneration Policy adopted by the
Board on the recommendation of the NRC enumerates
the criteria for assessment and appointment/re-
appointment of Directors, KMP and SMP on the basis of
their qualifications, knowledge, skill, industrial orientation,
independence, professional and functional expertise
among other parameters with no bias on the grounds
of ethnicity, nationality, gender or race or any other such
discriminatory factor.
The Policy also sets out the guiding principles for the
compensation to be paid to the Directors, KMP and SMP; and
undertakes effective implementation of Board familiarisation,
diversity, evaluation and succession planning for cohesive
leadership management.
With your Company continuing to comply with the Policy
in true letter and spirit, the complete Policy is reproduced
in full on our website at www.vedantalimited.com and
a snapshot of the Policy is elucidated in the Corporate
Governance Report.
OBSERVANCE OF THE SECRETARIAL STANDARDS
The Directors state that proper systems have been devised to
ensure compliance with the applicable laws. Pursuant to the
provisions of Section 118 of the Act, during FY 2023-24, the
Company has adhered with the applicable provisions of the
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237
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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 and notified by
Ministry of Corporate Affairs.
INDEPENDENT DIRECTORS' STATEMENT
The Company has received declaration from all the
Independent Directors confirming that they continue to
meet the criteria of independence as prescribed under the
Act and Listing Regulations and comply with the Code for
Independent Directors as specified under Schedule IV of
the Act.
The Directors have also confirmed that they are not aware
of any circumstance or situation, which exists or may be
reasonably anticipated, that could impair or impact their
ability to discharge their duties with an objective independent
judgement and without any external influence.
In terms of Section 150 of the Act read with Rule 6(1) and
6(2) of the Companies (Appointment and Qualification
of Directors) Rules, 2014, Independent Directors of the
Company have confirmed that they have registered
themselves with 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 Companies (Management and
Administration) Rules, 2014, the Annual Return in Form
MGT-7 for the financial year ended 31 March 2024 is placed
on the website of the Company and can be accessed at
www.vedantalimited.com.
AUDIT REPORTS AND AUDITORS
Audit Reports:
The Statutory Auditors have issued unmodified opinion on
the financial statements of the Company for the year ended
31 March 2024.
•
The Statutory Auditors’ report for FY 2023-24 does not
contain any other qualification, reservation or adverse
remarks which calls for any explanation from the Board
of Directors. The Auditors’ report is enclosed with the
financial statements in the Annual Report.
•
The Secretarial Auditors’ Report for FY 2023-24 does not
contain any qualification, reservation, or adverse remark.
The report in form MR-3 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:
•
As per the Listing Regulations, the auditors’ certificate
on corporate governance is enclosed as an Annexure to
the Corporate Governance Report forming part of the
Annual Report. The Certificate does not contain any other
qualification, reservation, or adverse remark except as
mentioned in the report.
•
A certificate from Company Secretary in Practice certifying
that none of the directors on the Board of the Company
have been debarred or disqualified from being appointed
or continuing as directors of companies by the SEBI/
Ministry of Corporate Affairs or any such statutory
authority forms part of the Corporate Governance Report.
Auditors:
Statutory Auditors
•
M/s S.R. Batliboi & Co. LLP, Chartered Accountants
(Firm Registration No. 301003E/E300005) had been
appointed as the Statutory Auditors of the Company in
the 56th AGM to hold office for a period of five (5) years
to the conclusion of 61st AGM.
•
The Auditors have confirmed that they are not
disqualified from being re-appointed as Statutory
Auditors of the Company.
•
The report of the Statutory Auditors along with notes
to financial statements is enclosed to this Report.
The Notes on financial statements referred to in the
Auditors’ Report are self-explanatory and do not call
for any further comments.
•
The auditors have also furnished a declaration
confirming their independence as well as their arm’s
length relationship with the Company. The Audit & Risk
Management Committee reviews the independence
and objectivity of the auditors and the effectiveness of
the audit process.
•
The Statutory Auditors were present at the last AGM of
the Company.
Secretarial Auditors
Cost Auditors
Internal Auditors
•
M/s Chandrasekaran Associates, Practicing Company
Secretaries had been appointed by the Board to
conduct the secretarial audit of the Company for
FY 2023-24.
•
The Company had received a certificate confirming
their eligibility and consent to act as the Auditors.
•
The Secretarial Audit Report for FY 2023-24 forms
part of this report and confirms that the Company
has complied with the provisions of the Act, Rules,
Regulations and Guidelines and that there were no
deviations or non-compliances.
•
M/s Shome & 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 2023-24.
•
M/s Ramnath Iyer & Co., Cost Accountants, were
nominated as the Lead Cost Auditors.
•
The Company had received a certificate confirming
their eligibility and consent to act as the Auditors.
•
The cost accounts and records of the Company are
duly prepared and maintained by the Company as
required under Section 148(1) of the Act pertaining to
cost audit.
•
M/s KPMG had been appointed as the Internal
Auditors of the Company for FY 2023-24 to conduct
the Internal Audit on the basis of detailed Internal
Audit Plan.
•
The Company has an independent in-house
Management Assurance Services ("MAS") team
to manage the Group's internal audit activity
and that functionally reports to the Audit & Risk
Management Committee.
•
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 2023-24 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.
REPORTING OF FRAUD BY AUDITORS
During the reporting year, under Section 143(12) of 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 Company by
its officers or employees.
LEGAL, COMPLIANCE, ETHICS AND GOVERNANCE
FUNCTION
The function plays a pivotal role in driving Vedanta’s
success by serving as strategists, enablers, and protectors
of business interests. Operating within a structured and
comprehensive framework, the function meticulously plans,
executes, and monitors all legal activities, providing essential
support for the Company's strategic objectives.
The function is dedicated to protecting the Company's
interests and ensuring seamless operations in a dynamic
environment. By ensuring comprehensive advisory and
compliance services in line with existing regulations
and legislative developments, it facilitates the business
agenda in areas such as claims and contract management,
mergers & acquisitions, dispute resolution, litigation, and
adherence to competition laws, business ethics, and
governance standards.
To deepen the understanding and application of
organisational values and principles embedded in Vedanta’s
Code of Business Conduct and Ethics, the function annually
conducts a mandatory online ethics training module for
all employees. Additionally, the function spearheads the
Ethics Compliance Month initiative, raising awareness
and conducting targeted training sessions on critical
ethical issues such as insider trading, prevention of sexual
harassment, anti-bribery, anti-corruption, and anti-trust
laws, utilising interactive learning tools. The Supplier Code of
Conduct ensures that third parties including their employees,
agents, and representatives maintain adherence to industry
standards and applicable statutory requirements concerning
labour and human rights, health, safety, environment,
and business integrity. This commitment reinforces the
Company’s dedication to ethical practices and integrity
across all facets of our operations.
Additionally, the function also drives regulatory and legislative
changes through effective engagement with the concerned
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
authorities and associations. By identifying opportunities,
mitigating risks, and proactively collaborating with cross-
functional departments, the function aims to uphold the
highest standards of support and efficiency.
As technological advancements continue to reshape the
market landscape, the function actively seeks to incorporate
such advancements in its everyday functionality to
streamline compliance frameworks, litigation management,
and contract management. The function also has in place
various automated systems like compliance tool, and
litigation management systems, with further integration
of artificial intelligence ("AI") under exploration to enhance
its functionality.
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 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 2023-24, 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 Corporate Governance
Report forming part of the Annual Report.
All RPTs are subjected to independent review by a
reputed accounting firm to establish compliance with the
requirements of RPTs under the Act and Listing Regulations.
During the year, the materially significant RPTs pursuant to
the provisions of Listing Regulations had been duly approved
by the shareholders of the Company in the 58th AGM held
on 12 July 2023. Further, there have been no materially
significant RPTs during the 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 2024 is
provided below:
Particulars
Amount (`)
Authorised Share Capital
74,12,01,00,000
Paid-Up Share Capital
3,71,75,04,871
Listed Share Capital
3,71,72,06,239
Shares under Abeyance pending allotment
2,98,632*
* During the year, the Company allotted 7,200 equity shares from
the abeyance category and subsequently listed. As on 31 March
2024, out of the total paid up capital of 3,71,75,04,871 equity shares,
2,98,632 equity shares are pending for allotment and listing and
hence kept under abeyance since they are sub-judice.
The details of the Capital Evolution has been provided
on the Company’s website and can be accessed at
www.vedantalimited.com.
SUBSIDIARIES, JOINT VENTURES, AND ASSOCIATE
COMPANIES
Your Company has 48 subsidiaries (20 direct and 28 indirect)
as at 31 March 2024, as disclosed in the notes to accounts.
During the year and till date the following changes have taken
place in subsidiary companies:
•
Hindmetal Exploration Services Private Limited incorporated
on 26 February 2024.
•
The Mumbai NCLT and Chennai NCLT had passed orders
dated 06 June 2022 and 22 March 2023 respectively to
sanction 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 ("GSPPL"), wholly-owned
subsidiaries/step down subsidiaries of Sesa Resources
Limited ("SRL"), with Sesa Mining Corporation Limited
("SMCL"). MCA statutory filing has completed on 18 January
2024 which is the effective date of merger.
•
Meenakshi Energy Limited has been acquired on
27 December 2023 under the liquidation proceedings of
IBC, 2016.
•
Copper Mines of Tasmania ("CMT"), wholly-owned
subsidiary of Vedanta Limited through intermediate
holding company, Monte Cello B.V. ("MCBV") was sold on
17 November 2023.
•
Vedanta Copper International VCI Company Limited
incorporated on 14 November 2023.
•
Vedanta Iron and Steel Limited incorporated on 10
October 2023.
•
Vedanta Base Metals Limited incorporated on
09 October 2023.
•
Vedanta Aluminium Metal Limited incorporated on
06 October 2023.
•
Sesa Iron and Steel Limited incorporated on
06 September 2023.
•
Vedanta Displays Limited and Vedanta Semiconductors
Private Limited have been acquired on 27 July
2023 from Twin Star Technologies Ltd via Share
Purchase Agreement.
As at 31 March 2024, 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 Statements of the Company and its subsidiaries
and joint ventures, prepared in accordance with Ind AS 110
issued by the Institute of Chartered Accountants of India,
form part of the Annual Report.
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
the financial statements of the subsidiary and associate
companies is attached to the financial statements in Form
AOC-1. The statement also provides details of performance
and financial position of each of the subsidiaries and their
contribution to the overall performance of the Company.
In accordance with Section 136 of the Act, the audited
Standalone and Consolidated financial statements of the
Company along with relevant notes and separate audited
accounts of subsidiaries are available on the website of the
Company at www.vedantalimited.com. Copies of the financial
statements of the Company and of the subsidiary companies
shall be made available upon request by any member of
the Company. Additionally, these financial statements shall
also be available for inspection by members on all working
days during business hours at the Registered Office of
the Company.
MATERIAL SUBSIDIARIES
The Company has adopted a policy on determination of
material subsidiaries in line with the Listing Regulations.
The policy aims to determine the Material Subsidiaries and
Material Unlisted Indian Subsidiaries of the Company and to
provide the governance framework for such subsidiaries. The
policy may be accessed at www.vedantalimited.com.
In accordance with Regulation 16(1)(c) of the Listing
Regulations, your Company has the following material
subsidiary companies during FY 2023-24:
•
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, 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
Material Subsidiary
HZL
CIHL
BALCO
Date of Incorporation
10 January
1966
02 August
2006
27 November
1965
Place of Incorporation
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, appointment of one of the Independent Directors
of the Company on the Board of unlisted material subsidiary
was applicable on CIHL and BALCO.
In compliance with the above requirement, Mr. Dindayal
Jalan, Independent Director of the Company, had been
appointed as Director of CIHL effective 30 November 2021.
Also, Mr. Jalan is already on the Board of BALCO since 2020.
The Company is in compliance with the applicable
requirements of the Listing Regulations for its subsidiary
companies during FY 2023-24.
DEBENTURES
During FY 2023-24, your Company has raised ` 5,900 crore through issuance of Non-Convertible Debentures ("NCDs") of face
value of ` 1,00,000 each on private placement basis as per the following details:
Security Description
Date of Allotment
No. of NCDs
Total Amount
(in ` Crore)
Tenor
Maturity Date
Secured Unrated Unlisted Redeemable NCDs
27 September 2023
2,50,000
2,500
01 year 06 months
27 March 2025
Secured Unrated Unlisted Redeemable NCDs
21 December 2023
3,40,000
3,400
01 year 06 months
21 June 2025
Further, the details with respect to outstanding listed NCDs as on 31 March 2024 have been detailed in the Corporate
Governance Report.
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FINANCIAL STATEMENTS
241
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
COMMERCIAL PAPERS
The Commercial Papers ("CPs") issued by the Company which were listed on National Stock Exchange of India Limited have
been duly redeemed during the year.
As on 31 March 2024, there are no outstanding CPs.
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
No. of
shareholders
No. of Equity shares
of ` 1/- each
Aggregate number of shareholders and the outstanding shares in the suspense account lying at the
beginning of the year;
451
4,59,616
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;
06
12,688
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") account pursuant
to IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 ("IEPF Rules") read with
Amendment Rules, 2017
78
42,053
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
367
4,04,875
Dividend and other amounts transferred/credited to IEPF during 2023-24
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
Amount transferred to IEPF (in `)
Date of transfer to IEPF
2015-16
Final Dividend
21 July 2016
31,99,635
12 September 2023
2016-17
Interim Dividend
28 October 2016
1,66,08,143
20 December 2023
Total
1,98,07,778
*In addition to the above transfers, an amount of ` 10,000 pertaining to Unpaid Matured Deposits and interest accrued thereon has been
identified and transferred to IEPF during the year.
TRANSFER OF UNPAID AND UNCLAIMED AMOUNTS
TO INVESTOR EDUCATION AND PROTECTION FUND
In accordance with the provisions of the Act, 2013 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 (7) years; and
•
Shares on which the dividend has not been paid/claimed
for seven (7) 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 IEPF 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 compliance with IEPF
Rules including statutory modification(s) thereof, the
Company publishes notices in newspapers and sends
specific letters to all shareholders whose shares are due
to be transferred to IEPF, to enable them to claim their
rightful dues.
Basis the continuous efforts of the Company, a total of
128 investor claims have been released from IEPF till 31
March 2024 aggregating to 1,87,588 shares.
In view of specific order(s) of court/tribunal/statutory authority restraining transfer of shares and dividend thereon, such shares
and unpaid dividend have not been transferred to IEPF pursuant to Section 124 of the Act and Rule 6 of IEPF Rules including
statutory modification(s) or re-enactment(s) thereof.
The details of dividend declared during the year on shares already transferred to IEPF are provided below:
Dividend declared during FY 2023-24 on shares already transferred to IEPF
Financial Year
Type of Dividend
Date of Declaration
Amount transferred to IEPF (in `)
Date of transfer to IEPF
2023-24
Interim Dividend (1st)
22 May 2023
8,15,36,455.07
12 June 2023
2023-24
Interim Dividend (2nd)
18 December 2023
4,86,69,693.09
10 January 2024
Total
13,02,06,148.16
Shares transferred/credited to IEPF during FY 2023-24
During the year, the Company transferred 2,69,268 equity shares of ` 1/- each held by 886 shareholders to IEPF.
The Company has also uploaded the details of unpaid and unclaimed amounts lying with the Company as on 12 July 2023 (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 2024-25
The dates on which unclaimed dividend and their corresponding shares would become due to be transferred to IEPF during
FY 2024-25 are provided below:
Dividend due to be transferred to IEPF during FY 2024-25
Particulars
Date of Declaration
Date of completion of
seven years
Due date for transfer
to IEPF
Amount as on
31 March 2024 (in `)
2nd Interim Dividend 2016-17
30 March 2017
04 May 2024
03 June 2024
17,48,02,651.60
Total
17,48,02,651.60
Ms. Prerna Halwasiya, Company Secretary & Compliance
Officer of the Company is designated as the Nodal
Officer under the provisions of IEPF. The contact details
can be accessed on the website of the Company at
www.vedantalimited.com.
TRANSFER TO RESERVES
The Company proposes Nil transfer to General Reserves out
of its total profit of ` 6,623 crore for the financial year.
PARTICULARS OF LOANS, GUARANTEES OR
INVESTMENTS
The particulars of loans given, investments made, guarantees
given and securities provided along with the purpose for
which the loan or guarantee or security is proposed to be
utilised as per the provisions of Section 186 of the Act are
provided in the standalone financial statements. (Please refer
to Notes to the Standalone Financial Statments forming part
of this Annual Report).
FIXED DEPOSITS
As on 31 March 2024, deposits amounting to ` 44,000 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
No material changes and commitments have occurred
between the end of the financial year of the Company to which
the financial statements relate and the date of this report
which may affect the financial position of the Company.
SIGNIFICANT & MATERIAL ORDERS PASSED BY THE
REGULATORS OR COURTS OR TRIBUNALS
The significant and material orders which have been
passed by any regulators or courts or tribunals against the
Company impacting the going concern status and Company’s
operations in the future, are provided below:
Copper Division
The Company had filed a Special Leave Petition before the
Hon’ble Supreme Court against the order of Division Bench
of Madras High Court vide which the Court had upheld the
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closure of the Copper Smelter Plant at Thoothukudi. The
Hon’ble Supreme Court on 29 February 2024 concluded that
the Special Leave Petition did not warrant interference under
Article 136 of the Constitution of India and dismissed the
Special Leave Petition filed by the Company.
The Company has filed a review petition against the order
passed by the Hon’ble Supreme Court and the listing of the
same is awaited.
CHANGE IN NATURE OF BUSINESS OF COMPANY
There is no change in the nature of business of the Company
during the year under review.
FAILURE TO IMPLEMENT ANY CORPORATE ACTION
There were no instances where the Company failed to
implement any corporate action within the specified
time limit.
GENERAL DISCLOSURES
(a) There are no pending legal proceeding against the
Company under Insolvency and Bankruptcy Code, 2016.
(b) There was no instance of one-time settlement with any
bank or financial institution during FY 2023-24.
9. AWARDS AND RECOGNITION
In a bid to maintain its persistent quest for steady growth
and continued excellence, the Company continues to ensure
its commitment towards maintaining the highest standards
of corporate governance and sustainable practices. As a
recognition for its impactful innovations and focused drive to
achieve best-in-class operations, the Company has secured
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 honour its diligent efforts towards delivering value for
the welfare of all stakeholders and the society as a whole.
The Company further strives to lead the path with continuous
disciplined improvements in its business practices.
The details of the awards and recognitions secured by the
Company have been highlighted in a separate section in the
Integrated Annual Report.
10. DIRECTORS’ RESPONSIBILITY STATEMENT
As stipulated in Section 134 of the Act, the Directors
subscribe to the “Directors’ Responsibility Statement” and
to the best of their knowledge and ability, hereby confirm that:
(a) in the preparation of the annual accounts, the applicable
accounting standards have been followed and there are
no material departures from the same;
(b) 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 and
fair view of the state of affairs of the Company at the end
of the financial year, i.e., 31 March 2024 and of the profit
and loss of the Company for that period;
(c)
they have taken proper and sufficient care for the
maintenance of adequate accounting records
in accordance with the provisions of the Act for
safeguarding the Company’s assets and for preventing
and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going
concern basis;
(e)
they have laid down internal financial controls to be
followed by the Company and that such internal financial
controls are adequate and are operating effectively; and
(f)
proper systems have been devised to ensure compliance
with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
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, stock exchanges,
financial institutions, 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
efforts directed towards lodging significant and effective
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
Place: London
Date: 25 April 2024
ANNEXURE A
Conservation of Energy and Technology Absorption
(A) Conservation of Energy:
Conservation of natural resources continues to be the key
focus area of your Company. Some of the important steps
taken in this direction follow.
OIL AND GAS BUSINESS:
Rajasthan Operations
i.
Conversion of steam driven power fluid pump to motor
driven pump at Mangala Processing Terminal leading
to emission reduction & energy efficiency. Annual GHG
emission reduction potential of ~ 86,000 tCO2e.
ii.
Reduction in fuel gas consumption through GTGs by
enhancing contract demand & utilisation of Grid Power
at Bhogat terminal. Annual GHG emission reduction
potential of 16,200 tCO2e.
iii.
Flare Gas utilisation from KW-02 through gas
cascading & bottling: Annual GHG reduction potential of
6,000 tCO2e.
iv.
Reduction in RDG flare through digital twin process.
Annual GHG emission reduction potential of 4,110 tCO2e.
v.
Commissioning of solar rooftop (15 KW) on another
16 AGIs of pipeline operations. Annual GHG reduction
potential of ~300 tCO2e.
vi.
Commissioning of solar rooftop of 126 KWp at Raag gas
WPs. Annual GHG reduction potential of 157 tCO2e.
vii. Energy Conservation by conversion of induction motor
to Permanent Magnetic motor ("PMM") has resulted
in energy saving of ~7,750 GJ & GHG reduction of
~1,550 tCO2e in FY 2023-24.
viii. Replacement of R-22 based HVACs to Inverter based
HVACs with ODS free & less GWP refrigerants at RJ
South resulted in annual energy saving of ~385 GJ.
ix.
Installation of airtron energy saver in 100 Nos. of split
ACs in RJ South resulting in annual energy conservation
of 480 GJ.
Cambay Operations
i.
Installed and commissioned 40 kWp on two wheeler
parking shed resulting in energy saving of 31,500 kWh.
ii.
Replaced total 94 no. of conventional lights with LED,
resulted in energy saving of 33,500 kWh.
COPPER BUSINESS:
i.
Phase out of less efficient motors with IE4 rated motors
having higher efficiency to reduce energy consumption
and subsequent emission. Total 8 motors have
been installed & 12 Nos. considered under phase 2
implementation. (Total Project Saving – 3,47,000 kWh/
Annum).
ii.
Reduction of fuel consumption in Piparia Casting Plant
by optimising the furnace burners negating 87,600 Kg/
Annum and associated emission reduction of 261
tCO2eq/Annum (Scope 1 Emission).
iii.
Secondary copper consumption for FY 2023-24 –
27,052 MT.
•
Silvassa – 24,693 MT estimated reduction of 61,733
tCO2eq. (Scope 3 Emission).
•
Fujairah – 2,359 MT estimated reduction of 5,897.5
tCO2eq. (Scope 3 Emission).
SESA GOA BUSINESS:
VAB
i.
Usage of biodiesel for oven heating operation, thus
reducing the emissions from conventional HSD usage
(Reduction ~500 tCO2 emission).
ii.
Installed free EV charging station at VAB for employees
and community. (Reduction ~500 tCO2 emission).
iii.
Replacing 2 Nos. old blower motors with IE4 motors
(Saving – 3,61,200 kWh/annum).
iv.
Conversion of conventional lamps with LED lamps
(Saving – 42,000 kWh/annum).
Iron Ore Goa (“IOG”)
i.
Installation of 60 no. of LED Streetlights in Haul Road
from NSP to 3-Top, 4-Top to Common Boundary and
¾ Bottom. The streetlight uses timer-based automatic
switching on/off of lights which cuts down extra usage
of energy.
Iron Ore Odisha (“IOO”)
i.
132 KW*2 and 75 KW*1 = 339 KW Pumps replaced
with single 315 KW, IE3 dewatering pump running on
VFD in FEEGRADE Mine resulted in energy saving of
2,34,738 kWh, pumping efficiency increase of 120%
(which translates to additional 76,772 kWh of energy
saving) and Power bill reduction of 13% per month of the
overall power bill in FY 2023-24 (Commissioning date
01 October 2024).
ii.
Replacement of 4 existing starters of BICO washing
plant with VFD.
•
Saving of 3,060 kWh in FY 2023-24 (Apron Feeder
VFD).
•
Saving of 3,825 kWh in FY 2023-24 (Classifier VFD).
•
Saving of 33,660 kWh in FY 2023-24 (Scrubber VFD).
•
Saving of 11,220 kWh in FY 2023-24 (Slurry Pump
VFD).
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iii.
LED Lights are installed in both the mines and offices
etc. for both indoor lighting as well as outdoor lighting.
24 KW of HPSV is replaced with LED Light (Energy
saving of 16,200 in FY 2023-24).
POWER BUSINESS:
2,400 MW Jharsuguda
i.
U#1,3,4 HP heater 3 performance improved by sealing
the leaking tubes. Savings of 0.6 KCal/kWh.
ii.
U#2 Flue gas duct leakage correction done resulted in
savings of 400 kWh.
iii.
U#2 Fabric filter bags replaced resulted in savings of
400 kWh.
iv.
U#2 HP bypass valve passing correction done resulted
in savings of 0.6 KCal/kWh.
CPP 1,215 MW Jharsuguda
i.
Air preheater basket jet cleaning for 3 units (Unit 9, 6 and
8) to reduce the high flue gas exit temperature to design
level saving 7.5 KCal/kWh.
ii.
Turbine Overhauling (HIP carrier refining) in Unit#9 to
improve HP cylinder efficiency resulted in saving of
8 KCal/kWh in heat rate for the unit.
iii.
Replacement of Air preheater seals and fabric filter bags,
flue gas duct repairing for 3 units (Unit 9, 6 and 8) to
reduce Induced Draft and Primary Air fans consumption
by 730 kWh.
iv.
Chemical cleaning of condenser done for 3 units (Unit
9, 6 and 8) to improve cleanliness factor and reduce
vacuum losses benefits vacuum improvement of
0.6 KPA and 9 KCal/kWh savings of heat rate in unit.
v.
Condenser bullet cleaning done in Unit #9, 6 and 8 to
save in heat rate by 9 KCal/kWh for the units combined.
vi.
2 no. Cooling Water system bucket strainer taken
in service after refurbishment to rectify frequent
condenser choking.
vii. 1 Mill grinding media replaced (9C) to improve mill
fineness and optimise combustion efficiency reduces
Auxiliary power consumption by 0.08% per unit.
ALUMINIUM BUSINESS:
Smelter Plant-1 (Jharsuguda)
Electrical Energy
DC Energy saving
i.
100% graphitised cathode implementation in
smelting pots.
ii.
Current efficiency improvement in Potline to 95.28%.
iii.
RUC copper inserted collector bar for pot cathode in
4 pots with savings of 458 kWh/MT per pot.
iv.
Vedanta Lining Design implemented in 90 pots with
savings of 195 kWh/MT per pot.
AC auxiliary Energy saving
i.
100% Graphitised Cathode Implementation in
smelting pots.
ii.
Installation of Energy efficient IE3 motors at various
areas of plant.
iii.
Conventional Light replacement with LED in High mast
office area, shop floor, pathway.
iv.
Retrofitting and software upgradation work in 2 metal
tapping vehicles.
v.
Biodiesel implementation in all Technological vehicles
(In 80:20 ratio).
vi.
Rectifier conversion efficiency improvement from
98.62% to 98.64%.
vii. Compressor efficiency improvement.
viii. Dryer efficiency improvement.
ix.
Energy efficient distil water pump installation in
power track.
x.
Optimisation of blower running time in Heating ramps
of furnace.
Smelter Plant-2 (Jharsuguda)
Electrical Energy
DC Energy saving
i.
100% graphitised cathode implementation in
smelting pots.
ii.
Current efficiency improvement in Potline is 94.47%.
iii.
RUC copper inserted collector bar for pot cathode in
6 pots with saving of 522 kWh/MT per pot.
iv.
Vedanta Lining Design implemented in 89 pots with
savings of 274 kWh/MT per pot.
AC auxiliary Energy saving
i.
Drive installation in CWP in Cast House-2.
ii.
Hydro jet cleaning of airlift blower pipe.
iii.
Hot well pump elimination in Rodding.
iv.
VFD installation for Cold Well Pumps.
v.
Mill productivity enhancement from 34tph to 37tph
(Average Running Hrs*Average kWh/hour).
vi.
HP#3 Compressor Overhauling.
vii. Pneumatic no-loss Drain Valve installation in
4 compressors.
viii. Old BR/CR motor replaced with IE3 motor in Bake oven.
ix.
Deployment of battery-operated forklifts.
x.
Replacement of conventional lights with LED lights.
xi.
VFD installation in furnace ID fan at Rodding plant.
Lanjigarh – Refinery
The following major energy conservation measures are taken
at Lanjigarh:
i.
Efficiency improvement in cooling water pumps by
anti‑frictional coating. Annual savings of 1.764 lakhs
units of electrical energy.
ii.
Power factor improvement in the refinery from
0.84 to 0.95. Annual savings of 12.64 lakhs units of
electrical energy.
iii.
Energy saving from speed optimisation through pulley
replacement and Variable speed drives in PDS transfer
pump, Flash steam condensate pumps and wash
water pumps. Annual saving of 14.23 lakhs units of
Electrical Energy.
iv.
Improvement of Specific FO by 1.34 Kg/T by
implementation of APC, online blind system for
CCL pan filter to reduce hydrate moisture and
refractory replacement.
v.
LED light replacement of 2,400 conventional lights.
Annual savings of 2.16 lakh units of Electrical Energy.
vi.
Improvement of Liquor productivity from 82 GPL to
84 GPL by improving ISC performance in PPT circuit.
Annual savings of 72 lakh units of Electrical Energy.
vii. Replacement of 101 nos. of IE1 motor to energy efficient
IE3 motors. Annual savings of 11.38 lakhs units of
Electrical energy.
viii. Segregating Griding media in Ball Mill 2,3- and thereby
improving throughput. Annual savings of 16.32 lakhs
units of Electrical Energy.
ix.
Steam economy improvement of Evaporation 1 and 2 by
increasing Heat transfer coefficient in calandria tubes.
Specific steam savings of 0.2 T/T of Hydrate.
x.
Increase in throughput of Ball mill 1&2 by increasing
capacity of feed pump and product discharge
pump. Annual Electrical savings of 72 lakhs units of
Electrical energy.
xi.
Enhancement of Indirect Heat Exchanger operation from
75% to 85% (through tube replacement) by retubing
6 number of bundles. Annual savings of 30 kt of
steam energy.
xii. Performance improvement of live steam heaters in
Digestion unit. Annual savings of 40 kt of steam energy.
xiii. Steam savings by replacement of steam traps in
Digestion, Evaporation and CGPP units. Annual Savings
of 3 kt of steam.
Lanjigarh – CGPP
i.
Replacement of Cooling Tower fills in CGPP. Annual
savings of 2.6 lakhs units of electrical energy.
ii.
Air pre-Heater replacement in Boiler 1 and Boiler 3.
Savings of 23,400 tonnes of coal per annum.
iii.
Successful firing of 358 T Biomass in Boilers in
FY 2023-24.
(B) Additional investments and proposals, if
any, being implemented for reduction of
consumption of energy
OIL & GAS BUSINESS:
Rajasthan Operations
i.
Renewable Energy Sourcing of another 47 MW
RTC power is under discussion with renewable
energy players.
ii.
Conversion of 2 more steam driven pumps to motor
driven pumps at Mangala Processing Terminal for
emission reduction & energy efficiency. Annual GHG
emission reduction potential is ~1,30,000 tCO2e.
iii.
Installation of Microturbine (2*0.8 MW) at Mangala
Processing Terminal. Annual GHG reduction potential of
11,400 tCO2e.
iv.
Replacement of Conventional Lights with Solar & LED at
MBA and Midstream operations.
v.
Installation of Air conditioners with non-Ozone Depleting
substance refrigerant and energy saving Inverter in MBA
and midstream operations.
vi.
Commissioning of 59 kWh SRP Solar Rooftop plant.
vii. Flare gas recovery using Gas compression Package
and Pipeline from Tukaram to RGT/RDG. Annual GHG
emission reduction potential up to 85,000 tCO2e.
viii. Installation of Gas Engine Generator at Tukaram-1Z.
Ravva Operations
i.
Replacement of Conventional Lights with LED at Ravva.
ii.
Conversion of Diesel driven compressor with Motor
driven (Blasting & Painting compressor).
COPPER BUSINESS:
i.
Installation of Biomass fired Boiler.
ii.
VFD installation for RCW Pumps in 35TPH CCR
– Project.
iii.
100% RE power project.
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iv.
VFD installation for standby cooling tower pump and HF
blower (Estimated energy saving – 47,232 kWh/year) –
Copper Fujairah.
v.
Energy efficient Air compressor (Estimated energy
saving – 54,000 kWh/year) – Copper Fujairah.
SESA GOA BUSINESS:
VAB
i.
Installation of solar power plant ~100 KW capacity at
admin and parking area of VAB.
ii.
Installation of EV charging stations for employees
and community.
IOK
i.
2.5 MW Solar RE PPA.
IOO
i.
Conversion of power source of 250KW BICO Mine
dewatering pump from DG supply to grid supply has
resulted in reduction of diesel consumption by 151.2 KL
in FY 2023-24 (commissioning date 11 November
2023). Furthermore, the motor is running with a VFD
resulting in additional energy saving of 5,38,740 kWh
per annum.
ii.
Conversion of power source of Crusher in BICO mine
from DG supply to grid supply has resulted in reduction
of diesel consumption by 292.5 KL in FY 2023-24.
POWER BUSINESS:
2,400 MW Jharsuguda Proposals
i.
NDCT fills replacement and condenser chemical
cleaning of Unit 3.
ii.
Flue gas duct leakage correction of Unit 3.
iii.
Air preheater seals and basket replacement of unit 3.
iv.
Flue gas duct replacement of Unit 2.
v.
NDCT fills replacement & condenser chemical cleaning
of Unit 2.
vi.
APH basket cleaning & seal replacement of Unit 2.
1,215 MW Jharsuguda Proposals
i.
Double layer bucket strainer installation for 5 units.
ii.
Air preheater Basket replacement for 1 unit.
iii.
Mill grinding media replacement for 6 Mills.
iv.
Additional cooling tower installation for 1 unit.
v.
ESP bag filter replacement for 1 unit.
vi.
Seal trough bottom hopper replacement for 2 units.
ALUMINIUM BUSINESS:
Smelter Plant-1 (Jharsuguda)
i.
100% Graphitised cathode implementation in
smelting pots.
ii.
Replacement of old motors with Energy efficient motor.
iii.
Replacement of conventional lights with LED lights.
iv.
Vedanta Lining Design implementation in smelting pots.
v.
RUC copper inserted collector bar for pot cathode.
Smelter Plant-2 (Jharsuguda)
i.
100% Graphitised cathode implementation in
smelting pots.
ii.
Vedanta Lining Design implementation.
iii.
Vedanta pot controller and Pot technology upgradation.
iv.
Replacement of conventional lights with LED lights.
v.
Replacement of old motors with Energy efficient motor.
(C) Impact of above measures in (A) and (B)
for reduction of energy consumption and
consequent impact of cost of production of
goods
OIL AND GAS BUSINESS:
Rajasthan Operations
i.
Conversion of steam driven power fluid pump to motor
driven pump at Mangala Processing Terminal leading to
emission reduction & energy efficiency. Annual energy
saving of ~14,40,000 GJ.
ii.
Renewable energy generation from solar rooftop (15
KW) on 16 AGIs of pipeline: ~2,52,400 kWh/annum.
iii.
Renewable energy generation from 126KWp at Raag
gas WPs: ~1,25,700 kWh/annum.
iv.
Energy Conservation by conversion of induction motor
to Permanent Magnetic motor (PMM) has resulted in
energy saving of ~7,750 GJ in FY 2023-24.
v.
Replacement of R-22 based HVACs to Inverter based
HVACs with ODS free & less GWP refrigerants at RJ
South resulted in annual energy saving of ~385 GJ.
vi.
Installation of airtron energy saver in 100 no. of split ACs
in RJ South resulting in annual energy conservation of
480 GJ.
Ravva Operations
i.
Conversion of Diesel compressor with electric motor
driven compressor reduced 61.55 tCO2e emissions and
reduction in energy consumption by 198.4 GJ/Year.
ii.
Replaced Conventional Lights with LED at Ravva
resulting 89 MWH savings for the year.
Cambay Operations
i.
Installed and commissioned 40 kWp resulting in
energy saving of 31,500 kWh.
ii.
Replaced total 94 no. conventional lights with LED
resulting in energy saving of 33,500 kWh.
SESA GOA BUSINESS:
VAB
i.
The energy conservation measures undertaken in
various areas in FY 2023-24 have an annual saving
potential of 403 MWH of electricity per annum
for VAB.
IOO
i.
In FY 2023-24, by converting the remaining
dewatering pumping from diesel to electricity,
443.7 KL diesel was saved and by using LED lights
and Variable Frequency Drives ("VFDs"), 841.463
MWH power was saved.
POWER BUSINESS:
2,400 MW Jharsuguda
i.
Estimated reduction of Auxiliary Power Consumption
("APC") by 0.55% from FY 2022-23 to FY 2023-24
with increase in net generation by 115 million units.
ii.
Estimated Specific Coal Consumption ("SCC")
reduction by 23 Gms/kWh from FY 2022-23 to
FY 2023-24 with Coal Saving of 4.3 LMT.
iii.
Estimated forced outage reduction by 0.8% from
FY 2022-23 to FY 2023-24 with increase in
availability by 280 Hrs.
iv.
Estimated Plant Load Factor ("PLF") increased by
13% from FY 2022-23 to FY 2023-24 with generation
increase by 2,733 million units.
v.
Estimated increase of availability by 6% from
FY 2022-23 to FY 2023-24 with increase in available
time by 1,800 Hrs.
1,215 MW Jharsuguda
i.
PLF increased by 4.09% Y-o-Y.
ii.
Station utilisation increased by 4.62% since
FY 2022‑23.
iii.
SCC reduction by 5.01 Gms/kWh.
iv.
APC reduction by 0.15% Y-o-Y.
v.
Forced outage reduction by 0.93% Y-o-Y.
ALUMINIUM BUSINESS:
Smelter Plant-1 and 2 (Jharsuguda)
i.
Specific energy consumption reduction by 55 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 setup Renewable Energy ("RE") hybrid power
through Group Captive Power Purchase ("GCPP") model.
SESA GOA BUSINESS:
IOK
i.
2.5 MW Hybrid RE PPA.
Met Coke Vazare
i.
Solar hybrid lights for main gate to junction.
VAB
i.
100 KW solar power plant installation in progress.
ii.
EV charging station setup.
IOO
i.
Planning for installation of 100 KW Solar Plant.
FORM OF DISCLOSURE OF PARTICULARS WITH
RESPECT TO TECHNOLOGY ABSORPTION
RESEARCH AND DEVELOPMENT (R&D)
Specific areas in which R&D carried out by the
Company
POWER BUSINESS:
2,400 MW Jharsuguda
i.
Coal Quality tracker developed to analyze coal quality
coming from different mines through different
transporters for day ahead planning of generation &
gap analysis.
ii.
Online startup monitoring program developed for
effective monitoring of parameters during unit startup
for deviations capturing & mitigation at the same time to
reduce startup time & oil consumption.
iii.
Online vibration monitoring system developed for
enhancing the reliability of mills through which we can
online monitor the healthiness of different parts of mills
so that outage losses can be minimised and deviations
can be corrected within short frame.
iv.
Acoustic leak detection system ("ASLD") to be installed
in Unit#3 for early detection of boiler failure & minimised
shutdown time.
v.
Separated overfire damper ("SOFA") installed in Unit#3
for better control over boiler tube metal temperatures
and enhancing combustion.
vi.
Economiser tubes changed from fin type to bare type in
Unit#3 for enhancing reliability.
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Technology Absorption, Adaptation, and Innovation
Benefits derived as a result of above efforts in brief made towards technology absorption, adaptation, and innovation
OIL & GAS BUSINESS:
Rajasthan Operations
Operations
•
Advance Process Control ("APC") implemented in CPP
to improve boiler efficiency further by optimisation
of excess O2, automation of ACC fan operation and
in steam turbine generators ("STGs") for maximising
power generations.
•
New motor driven PF pump installed to optimise
inhouse power generation by reducing stem
venting loss.
•
Automation on intermittent producing wells at RJ
South for increasing uptime of cyclic wells.
•
Online inspection of Storage tanks at RJ South with
Robotic Crawler.
•
Reduction in Trucking from SSF field at RJ South by
installation and commissioning of Oil export pipeline.
Petroleum Engineering
•
Artificial lift optimisation in Bhagyam field leading to
improved MTBF (~40%) and resulted in additional
volume of ~1,500 BOPD.
•
Implementation of Inhouse developed digital solutions
(Metador & PCP Connect) to optimise wells and
artificial lift across MBA fields that not only helped to
run wells at their technical limits but also increased
well uptime.
•
Development of in-house downhole gas separator and
screen for unconventional ABH wells with rod lift for
better pump performance and run life.
•
Implementation of hydraulic fracturing technology as
an alternate solution for productivity improvement in
high permeable MBA field.
•
Innovated lean well test system and H2S scrubber for
routine well services activity for improved turnaround
time ("TAT").
•
Optimisation of well services and workover
chemical recipes with Thumbli water & detailed fluid
chemistry study.
•
“Waste to Wealth generation” in Bhagyam PCP wells
by novel completion design by using ESP pulled out
sensors (in-house design and modification in existing
equipment).
•
Revival of (almost) abandoned wells using new-
generation customised fishing & milling tools.
•
Velocity string installation for low producing wells at
RJ South to increase production by preventing water
loading in wells.
•
Upgradation of Static and Dynamic Model from Version
4.1 to 5 for increasing accuracy of reserve estimation
and business planning.
HSE
•
AI based surveillance was adapted in MPT and Well
pads, capable of detecting both unsafe act and
unsafe conditions.
•
Virtual Reality ("VR") based training was provided to
employees and business partners.
•
Presence of Spark arrestor in vehicle is now being
captured through cameras.
•
Tanker digitalisation Mobile Application for pre-
unloading inspection of crude oil tanker.
•
Dashboard for tracking key metrics, trend analysis
and gaining insights into historical data for
Unloading tankers.
•
HSE Passport digitalisation.
Digital
Asset Performance Management ("APM") – APM
solution from GE Digital's Meridium is implemented
across MBA fields. Key Advantages of implementing this
solution –
•
Predictive Maintenance: Provides advanced analytics
and predictive modelling to anticipate equipment
failures before they occur. By analysing historical
data, monitoring real-time performance metrics, and
identifying early warning signs of potential issues.
•
Improved Asset Reliability: By monitoring asset health
and performance in real-time, it helps to optimise asset
reliability and uptime.
•
Increased Operational Efficiency: This will help in
optimising asset performance and operational
efficiency by providing actionable insights into
asset health, reliability, and maintenance needs.
By streamlining maintenance processes, reducing
equipment downtime, and maximising asset utilisation,
it can improve productivity, reduce operating costs, and
enhance overall profitability.
•
Implementation of Industrial Internet of Things ("IIoT")
at RJ South for health monitoring & predictive analysis
of critical equipment.
•
Digital Twin implementation at RJ South for process
optimisation by online dynamic modelling simulation.
Energy Consumption
Efforts were made to reduce energy consumption and
minimise energy losses by implementing –
•
HVAC Digitalisation system in four sections within
the Mangla Processing Terminal and Raageshwari
Gas Terminal by using IIOT devices to collect key
performance parameters in real time in the cloud
infrastructure. Providing key benefits like - Centralised
remote monitoring, access, and control of HVACs.
Also improving equipment efficiency, energy saving
and reducing carbon footprint, predicting equipment
failures and shifting from preventive maintenance to
Condition-based Maintenance.
•
Steam Trap Monitoring using Iot Devices has enabled
real time monitoring and AI based automated analysis
of trap health via proprietary detection algorithm to
detect the state of the steam traps. This initiative
utilises IoT-enabled temperature sensor to monitor and
alert about the steam trap failures.
Plant Automation
•
Remote monitoring of Aishwarya Barmer Hills ("ABH")
field SRP wells using dyna card for well monitoring and
production optimisation.
•
Remote Equipment health monitoring for vital
equipment using Internet of Things technology was
carried in MPT as part of POC for real time monitoring
of parameters and triggering and notifying the faults
to users.
•
Central control room concept for SSF and RDG for
better monitoring initiated.
Ravva Operations
•
Development of automated virtual metering tool (daily
automated well rate estimation). The tool utilises
powerful algorithm and visualisation tools. This tool
was developed internally, and user acceptance testing
is in progress.
Cambay Operations
•
Installed one of its kind gas engine driven horizontal pump
system (2 no.) on LB Platform.
•
Retrofit gas lift arrangement using Jet pump was
done in LA-07 well where no GLM was present in the
upper completion.
•
Special 2½” size tractor was designed from the business
partner due to complex well trajectory and intervention
challenges. Wireline was conveyed along with tractor to
perforate GA-07 well to yield incremental gas production.
•
Through tubing perforation in the middle completion and
application of straddle patch system to unlock target zone
behind the tubing & casing. Patch installation facilitated to
divert gas through GLM for controlled flow in LB-11.
•
Successful mechanical water shut off job conducted in
LA-10.
•
Deterministic and stochastic seismic inversion study
carried out for Babaguru and Tarkeshwar intervals.
SESA GOA BUSINESS:
VAB
•
Turbine upgradation in power plant to increase the
generation of PP-2 from 30 MW to 35 MW.
•
Replacing old motors with super premium efficiency
motors (IE4).
•
Using variable frequency drive for speed control and hence
increasing efficiency.
IOO
•
Replacing old dewatering circuits with single 315 KW
pump-motor increased flow rate from 779 to 900 cubic
metres per hour.
•
Replacing old motors with higher efficiency motors (IE3).
•
Using variable frequency drive for speed control and hence
increasing efficiency.
•
Installing LED lights in all places.
ALUMINIUM BUSINESS:
Smelter Plant-1 and 2 (Jharsuguda)
•
Vedanta Lining Design implementation in smelting pots.
•
RUC copper inserted collector bar for pot cathode.
•
Replacement of Diesel operated forklift with Battery
operated forklift.
Benefits derived as a result of above efforts in brief made towards technology absorption, adaptation, and innovation
250
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
251
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
OIL AND GAS BUSINESS:
Rajasthan Operations
Operations
•
APC implemented in CPP to improve Boiler efficiency
further by optimisation of excess O2, automation of
ACC fan operation and in steam turbine generators
(STGs) for maximising power generations.
•
New motor driven PF pump installed to optimise
inhouse power generation by reducing stem
venting loss.
PE and Drilling
•
Artificial lift optimisation in Bhagyam field resulted in
additional volume of ~1,500 BOPD.
•
Development of in-house downhole gas separator
and screen for unconventional ABH wells with rod lift
improved pump performance and added volume of
~1,000 BOPD and increased MTBF.
•
Implementation of hydraulic fracturing technology as
an alternate solution for productivity improvement in
high permeable MBA field resulted in ~5,000 BOPD.
•
Innovation of lean well test system and H2S scrubber
for routine well services activity, improved TAT and
reduced cost, leading to saving of ~1 MMUSD annually.
•
Optimisation of well services and workover chemical
recipes with Thumbli water resulted in cost saving of 1
MMUSD annually.
•
“Waste to Wealth generation” in Bhagyam PCP wells
by novel completion design by using ESP pulled
out sensors (in-house design and modification in
existing equipment) which resulted in cost saving of
~500k USD.
•
Revival of (almost) abandoned wells using new-
generation customised fishing & milling tools added
volume of ~700 BOPD.
HSE
•
Proactive detection of unsafe act and unsafe condition
has helped in reducing the number of HSE incidents.
•
VR (Virtual Reality) based training has eliminated even
the slightest of risk that existed during actual training.
•
Tanker digitalisation, HSE passport digitalisation and
HSE dashboards have helped in gaining the insights on
number of unsafe acts, unsafe conditions, reasons for
safety breaches and performing root cause analysis
of incidents.
Digital
•
HVAC Digitalisation: Energy saving of 572 kWh was
achieved during the PoC which resulted saving of
15 lakhs and reduced carbon footprint of 140 tonne
of CO2e.
•
Steam trap Monitoring: Following the successful
completion of the PoC, we are in plan to scale up the
project and expand the monitoring system to cover a
total of 100 steam traps including the 20 traps as part
of PoC.
•
Potential steam loss saving is around 11 lakhs kg/
annum and reduction in carbon footprint of 180 tonne
of CO2e and fuel gas consumption reduction by 2.82
MMSCF/year.
•
Using APC in ESP and PCP wells resulted in 3% increase
in oil production across wells using APC in MBA fields.
•
SRP wells performance optimised in ABH fields by
having remote monitoring of process parameters.
•
IIot based vibration monitoring system helped
in early detection and recommendation saved
production losses and equipment downtime in tune of
approximately 38k USD.
Ravva Operations
•
Development of automated virtual metering tool
(daily automated well rate estimation) which would
help in production accounting based on real time well
parameter (well performance) on daily basis.
Cambay Operations
•
The installation of gas engine driven HPS at LB
Platform has enabled artificial lift at the unmanned
platform in absence of gas lift and electricity.
•
Increased Gas production up to 0.7 MMSCFD in GA-07
after successful tractor conveyed perforation activity
with wireline.
•
Production Gain of ~500 BOEPD realised after
successful mechanical water shutoff activity in LA-10.
•
Unlocked zone behind tubing and casing with additional
production gain ~1.25 MMSCFD in LB-11.
•
Deterministic and stochastic seismic inversion study
carried out for Babaguru and Tarkeshwar intervals
would help in focusing on better vertical and lateral
delineation of the reservoir bodies for improved
understanding of reservoir continuity and connectivity.
Benefits derived as a result of above efforts e.g., product improvement, cost reduction, product development,
import substitution
SESA GOA BUSINESS:
VAB
•
Increase in power generation with same
steam consumption.
•
Reduction in losses and hence increase efficiency.
•
Power saving due to lower speed operation.
•
Less failure and reduced power consumption.
IOO
•
Increase in dewatering flow rate with lesser
power consumption.
•
Reduction in losses and hence increase efficiency.
•
Power saving due to lower speed operation.
•
Less failure and reduced power consumption.
Business
Technology imported
Year of import
Has technology been
fully absorbed?
Oil and Gas Business
Cambay Operations
•
Gas engine driven HPS pumps (2 nos.).
•
Custom designed 2½” Tractor –
Stroker tool.
Imported in FY 2023-24
Imported in FY 2023-24
Yes
Yes
Copper Division
No
Iron Ore - VAB
Turbine upgradation in power plant to
increase the generation of PP-2 from 30 MW
to 35 MW.
FY 2022-23 [PP]
Yes
Power Business
No
Aluminium Business
No
Sd/-
Anil Agarwal
(Non-Executive Chairman)
POWER BUSINESS:
2,400 MW Jharsuguda
•
U#3 R&M planned in Q4 FY 2023-24 for
Economiser coils replacement from finned tube to
bare tube & SOFA (Separated overfired air) damper
installation for improved combustion efficiency and
better control over metal temperatures.
1,215 MW Jharsuguda
•
Induced draft Fan drive power reduction by
Penthouse air seal.
•
Padded insulation installed in Turbine to reduce
radiation losses.
•
317 tonnes Biomass pallets induced to comply
RPO obligation.
Benefits derived as a result of above efforts e.g., product improvement, cost reduction, product development,
import substitution
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:
252
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
253
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Disclosure of particulars with respect to conservation of energy
Particulars
Unit
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Business Unit
Oil & Gas
Copper
Sesa Goa
Power
Aluminium
A. Power and Fuel
Consumption
Met Coke
Division
Pig Iron
Division
Power
Plant
(WHR)
Mining
Goa
Met Coke
Gujarat
Met Coke
Vazare
Mining
Orissa
Mining
Karnataka
Met Coke
Division
Pig Iron
Division
Power
Plant
(WHR)
Mining
Goa
Met Coke
Gujarat
Met Coke
Vazare
Mining
Orissa
Mining
Karnataka
Lanjigarh
Jharsuguda
Electricity
Purchase Unit
MWH
4,74,103.29 4,87,527.00 1,05,123.16
97,650.29
8,516.71 2,03,111.04
690.62
1,197.35
947.20
497.95
3,527.176
476.5
9,119.74 1,81,331.64
3,691.25
2,229.00
1.36
54.52
1,723.815
462.0
4,831
7,503
16,731
38,277
48,31,427
75,03,388
Total Amount (Exc
Demand Chgs)
` crore
388.6
291.54
52.9
60.17
0.5
15.0
0.4
0.5
0.8
0.5
2.137
0.5
0.6
14.0
2.4
1.2
1.1
0.5
1.073
0.4
3,035
5,382
13.92
24.11
3,034.97
5,382.00
Rate/Unit
`/kWh
25.99
5.98
5.04
6.27
0.57
0.7
6.2
4.5
10.6
8.1
5.85
7.4
0.66
0.8
6.5
5.4
9.5
9
5.85
9.2
6.28
7.00
6
6
6.28
7.00
Own generation Unit*
MWH
5,44,083.00 4,51,683.00
1,198.65
764.74
0.02
63.59
4,05,865.1
NA
5.28
0.00
3,633.0
3,036.0
0.02
160.77
3,52,799.9
NA
NA
0.00
2,880.0
3,033.0
21,817
18,287
4,99,872
4,79,918
2,18,17,411 1,82,86,713.07
Unit per unit of fuel
`/Unit,
Gms/Unit,
Litre/Unit
NA
NA
NA
NA
NA
NA
NA
0.00
93.00
7.1
NA
NA
NA
NA
NA
0.00
90.0
7.1
777
794
4
7
777
794
Cost/Unit
`/MWH,
`/kWh
NA
NA
-
22.3
0.6
NA
NA
0.0
13.95
12.3
-
24.8
0.6
NA
NA
0.0
11.3
12.3
3.11
4.72
4.83
7.85
3.11
4.72
Furnace Oil
43,328.30
43,139.57
Quantity**
KL
3,632.57
4,131.90
Nil
Nil
Nil
Nil
Nil
Nil
NA
NA
Nil
Nil
Nil
Nil
Nil
Nil
NA
NA
1,21,342.18 1,29,167.00
210.49
223.82
Total Amount
` crore
16.72
21.58
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
612.10
637.04
50.4
51.9
Average Cost per litre
`/Litre
46.01
52.23
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
50.44
49.30
Diesel Oil
Quantity
KL
8,324.91
27,346.90
27.179
32.30
Nil
15.9
4.5
183.1
117.5
106.0
5,733.0
10,608.3
Nil
86.8
5.3
3,493.709
334.0
11.6
6,280.0
9,183.4
3,745
4,848
1,934
969
5,857.859
7,216.504
Total Amount
` crore
71.44
284.08
0.23
0.25
NA
0.1
0.0
1.6
1.1
1.0
5,33,169.0
98.8
NA
0.9
0.1
32.2
3.0
0.1
79.9
25
38
18
12
51.47
76.79
Average Cost per litre/Unit
per litre of Oil
`/Litre
90.01
103.88
85.8
78.14
NA
89.2
87.5
87.5
90.4
90.1
93.0
86.0
NA
99.0
101.5
152.09
91.1
100.0
87.0
66
78
91
125
87.87
106.41
Cost per Unit
90.4
L.P.G./LNG/Propane/IPA
Quantity-(LPG)
MT
8,612.91
4,818.86
NIL
79.8
NIL
NIL
NIL
NA
NA
NA
NIL
82.4
NIL
NIL
NIL
NIL
NA
NA
1,460.12
1,081.27
Total Amount
` crore
127.4
32.41
NIL
0.7
NIL
NIL
NIL
NA
NA
NA
NIL
0.7
NIL
NIL
NIL
NIL
NA
NA
8.25
8.68
Average Cost per Kg
`/Kg
56.18
67.26
NIL
82.1
NIL
NIL
NIL
NA
NA
NA
NIL
85.4
NIL
NIL
NIL
NIL
NA
NA
56.48
80.26
L.P.G./LNG/Propane/IPA
Quantity-(PNG)
MT
4,652.11
7,416.05
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Total Amount
` crore
32.38
34.47
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Average Cost per Kg
`/Kg
69.5
46.48
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
L.P.G./LNG/Propane/IPA
Quantity(LNG)
MT
Nil
Nil
Nil
Nil
Nil
NA
NA
NA
Nil
Nil
Nil
Nil
Nil
Nil
NA
NA
Total Amount
` crore
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Average Cost per MT
`
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
L.P.G./LNG/Propane/IPA
Quantity-(IPA)
MT
312.11
436.84
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Total Amount
` crore
3.49
4.28
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Average Cost per Kg
`/Kg
111.79
98.05
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Natural Briqutte/Coal
Quantity
MT
Nil
Nil
Nil
Nil
Nil
NA
NA
NA
Nil
Nil
Nil
Nil
Nil
Nil
NA
NA 1,69,34,781 1,43,38,609 9,77,474.15 9,11,980.34
1,69,34,781
1,43,38,609
Total Amount
` crore
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
4,614
6,505
467.75
772.81
4,614
6,505
Average Cost per MT
`
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
2,725
4,537
4,785.26
8,473.98
2,725
4,537
Particulars
Unit
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Year
Ended
31 March
2024
Year
Ended
31 March
2023
Business Unit
Oil & Gas
Copper
Sesa Goa
Power
Aluminium
B. Consumption per MT
of Production
Met Coke
Division
Pig Iron
Division
Power
Plant
(WHR)
Mining
Goa
Met Coke
Gujarat
Met Coke
Vazare
Mining
Orissa
Mining
Karnataka
Met Coke
Division
Pig Iron
Division
Power
Plant
(WHR)
Mining
Goa
Met Coke
Gujarat
Met Coke
Vazare
Mining
Orissa
Mining
Karnataka
Lanjigarh
Jharsuguda
Continuous Copper Rod/
Iron -Ore
Electricity
MWH/MT
0.54
0.63
0.02
0.024
0.1
NA
NA
NA
NA
0.0
0.02
0.260
0.1
NA
NA
NA
NA
0.0
Furnace Oil
KL/MT
0.02
0.03
Nil
Nil
Nil
Nil
Nil
NA
NA
NA
Nil
Nil
Nil
Nil
Nil
Nil
NA
NA
Diesel
KL/MT
0.0,001
0.0,002
0.0
0.0
0.0
0.0
0.0
NA
NA
0.0
0.0
0.0
0.0
0.0
0.0
0.0
NA
0.0
L.P.G./Propane/IPA
MT/MT
0.069
0.082
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Production of Rod
MT
1,98,022.09 1,54,767.16
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Alumina
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
226.3
226.7
Coal for Steam
MT/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0.25
0.28
Furnance Oil for
Calcinaton
Kg/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
69.1
72.1
Hot Metal
Electricity (Total AC for
electrolysis and auxillary
energy
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
13,702
13,757
Billet (including alloy
rods)
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
348.46
316.75
Furnace Oil
KL
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Ingots
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
17.54
17.27
Furnace Oil
KL
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Wire Rods
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
96.98
94.75
Furnace Oil
KL
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
SOW cast
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
0.00
251.95
T-ingot
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
75.37
70.34
Cast Bar (P10-20)+BTCB
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
37.58
-
SOW cast
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
32.96
31.01
Alloy CastBar
Electricity
kWh/MT
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
87.77
88.62
* This includes the WHRB Generation also.
**This includes the FO consumed in CPP also.
*** This includes Generation from DG Set also.
254
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
255
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
1
Brief outline on CSR Policy of the Company:
A. POLICY OBJECTIVE
Vedanta Limited ("VEDL" or "Company") is committed
to conduct its business in a socially responsible,
ethical and environment friendly manner and to
continuously work towards improving quality of life of
the communities in and around its operational areas.
This Policy provides guidance in achieving the above
objective and ensures that the Company operates on a
consistent and compliant basis.
B. VEDL CSR PHILOSOPHY
"We at Vedanta Limited have a well-established history
and commitment to reinvest in the social good of our
neighbourhood communities and nation."
CSR VISION
"Empowering communities, transforming lives and
facilitating nation building through sustainable and
inclusive growth."
We believe, that
•
we can positively impact and contribute to the
realisation of integrated and inclusive development
of the country, in partnership with National and
State Government as well as local, national and
international partners;
•
sustainable development of our businesses is
dependent on sustainable, long lasting and mutually
beneficial relationships with our stakeholders,
especially the communities we work with;
•
partnerships with government, corporates and civil
societies/community institutions, offer a strong
ANNEXURE B
Annual Report on CSR Activities for FY 2023-24
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 & Education
b)
Women’s Empowerment
c)
Health Care
d)
Drinking Water & Sanitation
e)
Sustainable Agriculture & Animal Welfare
f)
Market linked Skilling the Youth
g)
Environment Protection & Restoration
h)
Sports & Culture
i)
Development of Community Infrastructure
j)
Participate in programs of national importance
including but not limited to disaster mitigation,
rescue, relief and rehabilitation
The CSR activities are aligned to the specified activities
in Schedule VII of the Act. The above may be modified
from time to time, as per recommendations of the CSR
Committee of the Company.
2
Composition of CSR Committee:
Sl.No.
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
1
Akhilesh Joshi
Chairperson, Independent Director
2
1
2
Priya Agarwal Hebbar
Member, Non-Executive Director
2
2
3
UK Sinha
Member, Independent Director
2
2
4
Padmini Sekhsaria
Member, Independent Director
2
1
3
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.
4
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:
Not Applicable for FY 2023-24
5
(a) Average net profit of the Company as per Section 135(5) (` crore): 5,329
(b) Two percent of average net profit of the Company as per Section 135(5) (` crore): 107
(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: Nil
(d) Amount required to be set off for the financial year, if any (` crore): Nil
(e) Total CSR obligation for the financial year (5b+5c-5d) (` crore): 107
6
(a) Amount spent on CSR projects (both ongoing projects and other than ongoing projects) (` crore): 127
(b) Amount spent in Administrative Overheads (` crore): 4
(c) Amount spent on Impact Assessment, if applicable (` crore): Nil
(d) Total amount spent for the financial year (6a+6b+6c) (` crore): 131
(e) CSR amount spent or unspent for the financial year:
Total Amount Spent for the
financial year (` crore)
Amount Unspent (` 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
131
-
NA
NA
NA
NA
(f) Excess amount for set off, if any (` crore):
Sl.No
Particular
Amount (in ` crore)
(i)
Two percent of average net profit of the Company as per Section 135(5)
107.00
(ii)
Total amount spent for the financial year
131.00
(iii)
Excess amount spent for the financial year [(ii)-(i)]
24.00
(iv)
Surplus arising out of the CSR projects or programmes or activities of the previous financial years,
if any
0.00
(v)
Amount available for set off in succeeding financial years [(iii)-(iv)]
24.00
7
Details of Unspent CSR amount for the preceding three financial years: Nil
8
Whether any capital assets have been created or acquired through CSR amount spent in the financial
year : No
9
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/-
Sd/-
Arun Misra
Akhilesh Joshi
Executive Director (Whole-Time Director)
Non-Executive Independent Director
(Chairman - CSR Committee)
256
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
257
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ANNEXURE C
Disclosure in Board’s Report as per provisions of Section 197 of the
Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2019
Sr.No. Requirement
Disclosure
1
Ratio of the remuneration of each director to the
median remuneration of the employees of the
Company for the financial year
Name of the Director
Category
Ratio
Navin Agarwal (1)
Executive Vice-Chairman
228.48
Sunil Duggal (2)
Whole-Time Director &
Chief Executive Officer
56.32
Arun Misra (3)
Executive Director
127.18
Ratio of the Fee for attending board/committee
Meetings & Comission of each director to the
median remuneration of the employees of the
Company for the financial year
Anil Agarwal
Non-Executive Chairman
1.51
UK Sinha
Independent Director
10.67
Dindayal Jalan
Independent Director
10.46
Akhilesh Joshi
Independent Director
10.16
Padmini Sekhsaria
Independent Director
8.55
Priya Agarwal Hebbar
Non-Executive Director
16.10
2
Percentage increase in remuneration of each
director, Chief Financial Officer, Chief Executive
Officer, Company Secretary or Manager, if any, in
the financial year
Name
Category
Increment
Percentage
Navin Agarwal
Executive Vice-Chairman
6%
Sunil Duggal (2)
Whole-Time Director &
Chief Executive Officer
NA
Arun Misra (3)
Executive Director
NA
Ajay Goel (4)
Chief Financial Officer
NA
Sonal Shrivastava (5)
Chief Financial Officer
NA
Prerna Halwasiya
Company Secretary &
Compliance Officer
5%
3
Percentage increase in the median remuneration
of employees in the financial year
The median remuneration of the employees in the financial year was increased by
5.95%*
4
Number of permanent employees on the rolls of
Company
There were 7,493 employees of Vedanta Limited as on 31 March 2024.
5
Average percentile increase already made
in the salaries of employees other than the
managerial personnel in the last financial year
and its comparison with the percentile increase
in the managerial remuneration and justification
thereof and point out if there are any exceptional
circumstances for increase in the managerial
remuneration
Average increment in FY 2023-24 for Managerial Personnel
(M4 and Above): 8.1%
Average Increment in FY 2023-24 for non Managerial Personnel
(M5 and Below): 11.10%
No exceptional increase given in the managerial remuneration.
6
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 2023-24.
Notes:
1. For Mr. Navin Agarwal, the ratio inclusive of remuneration received from Vedanta Resources Limited, UK, the Holding Company, is 335.54.
2. Mr. Sunil Duggal superannuated on completion of his tenure as the Whole-Time Director & CEO effective close of business hours on
31 July 2023.
3. Mr. Arun Misra was inducted as the Executive Director of the Company with effect from 01 August 2023.
4. Mr. Ajay Goel served as Acting CFO of the Company from 23 October 2021 till close of business hours on 09 April 2023. Further, as part
of Company's structured re-hiring program called "Gharwapsi", Mr. Ajay Goel was appointed as the CFO of the Company with effect from
30 October 2023.
5. Ms. Sonal Shrivastava was appointed as the CFO of the Company with effect from 01 June 2023 and further tendered her resignation from
the position of CFO with effect from close of business hours on 24 October 2023.
Sd/-
Anil Agarwal
(Non-Executive Chairman)
ANNEXURE D
Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31 MARCH 2024
To,
The Members
Vedanta Limited
1st Floor, ‘C’ wing,
Unit 103, Corporate Avenue Atul Projects,
Chakala, Andheri (East) Mumbai,
Maharashtra – 400 093
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
the “Company” or “VEDL”) for the financial year ended 31
March 2024 (“Audit Report”). The Secretarial Audit was
conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records
maintained by the Company and also the information
provided by the Company, its officers, agents and authorised
representatives during the conduct of secretarial audit, we
hereby report that in our opinion, the Company has, during
the audit period covering the financial year ended on 31
March 2024 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books, forms
and returns filed and other records maintained by the
Company for the Financial Year ended on 31 March 2024
(“Period under review”), according to the provisions of:
(i)
The Companies Act, 2013 (the “Act”) and the rules made
thereunder including re-enactment(s) thereof;
(ii)
The Securities Contracts (Regulation) Act, 1956
(“SCRA”) and the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations
and Bye-laws framed thereunder to the extent of
Regulation 76 of Securities and Exchange Board of India
(Depositories and Participants) Regulations, 2018;
(iv) Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (“SEBI Act”):-
(a) The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
(c)
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018;
(d) The Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity)
Regulations, 2021;
(e)
The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021;
(f)
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 to the extent of the Companies
Act and dealing with client to the extent of
securities issued;
(g) The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2021; Not
Applicable during the period under review.
(h) The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018;
Not Applicable during the period under review.
(i)
The Securities and Exchange Board of India
(Debenture Trustee) Regulations, 1993 (in relation
to obligations of Issuer Company).
(vi) The Management has identified and confirmed the
following laws as being specifically applicable to
the Company:
a)
The Mines and Minerals (Development and
Regulation) Act, 2015 and the rules and regulations
made thereunder.
b)
Indian Boilers Act, 1923 and rules and regulations
made thereunder.
c)
Manufacture, Storage, and Import of Hazardous
Chemical Rule, 1989.
258
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
259
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
We have also examined compliance with the applicable
clauses and regulations of the following:
(i)
Secretarial Standards issued by The Institute of
Company Secretaries of India and notified by Ministry
of Corporate of Affairs.
(ii)
The Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015 (“Listing Regulations”).
During the period under review, the Company has generally
complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc. mentioned above except as
mentioned below:
i.
Securities and Exchange Board of India (“SEBI”) vide
its adjudication order dated 30 June 2023, imposed a
penalty of ` 30 Lakhs upon the Company for violation
of the provisions of Regulation 4(1)(C), Regulation
30(11) read with 30(12) and Regulation 46(3) of the
Listing Regulations.
ii.
Pursuant to the provisions of Regulation 30 of the
Listing Regulations, the Company is required to submit
the schedule of analysts or institutional investors meet
at least two working days in advance (excluding the
date of intimation and the date of the meet). However,
the Company has submitted the schedule of investor
meet dated 29 September 2023, on the same day of
meet. We have been informed by the management
that the Company couldn't submit the required
disclosure due to the sensitivity of the transaction.
iii.
The Company had delayed submission of intimation
under Regulation 29(2) of Listing Regulations with
each of the Stock Exchange(s) about the meeting of
the Board of Directors held on 04 November 2023,
to consider the financial results of the Company for
Quarter ended 30 September 2023, and a fine of
` 11,800/- (inclusive of GST @ 18%) has been imposed
by each of the stock exchange(s). As confirmed by the
management of the Company, the same has been paid
within the prescribed timeline. Further, the Company
has not submitted the schedule of investor meet dated
04 November 2023, within the prescribed timeline.
iv.
In accordance with the provisions of Regulation 39
of the Listing Regulations, filings in respect of Loss
of Share Certificate should have been made by the
Company within two days of getting information.
However, for one request, the Company has not made
the submission to the stock exchange(s). We have
been informed by the management of the Company
that the same was due to non-receipt of information
from the RTA of the Company.
We further report that:
The Board of Directors of the Company is duly constituted
with proper balance of Executive Directors, Non-Executive
Directors, and Independent Directors. The changes in the
composition of the Board of Directors that took place during
the period under review were carried out in compliance with
the provisions of the Act.
Adequate notice is given to all Directors to schedule the
Board Meetings. Agenda and detailed notes on agenda
were sent atleast seven days in advance (except in cases
where meetings were convened at shorter notice for which
necessary approvals were obtained as per applicable
provisions), and a system exists for seeking and obtaining
further information and clarifications on the agenda items
before the meeting and for meaningful participation at
the meeting.
All decisions at meetings of the Board and Committees are
carried out unanimously as recorded in the minutes of the
meetings of the Board of Directors or Committees thereof, as
the case may be.
We further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations
and guidelines.
We further report that during the audit period, following major
events have happened which are deemed to have major
bearing on the Company’s affairs in pursuance of the above
referred laws, rules, regulations, guidelines, standards, etc.
(i)
5,90,000 Secured, Unrated, Unlisted, Redeemable,
Non-Convertible Debentures, each of nominal value
of ` 1,00,000 (Rupees One Lakh) aggregating up
to ` 5,900 crore (Rupees Five Thousand and Nine
Hundred Crore) have been issued and allotted on private
placement basis.
(ii)
The Committee of Directors has issued and allotted
7,200 Equity Shares of ` 1/- each as fully paid-up from
the abeyance category.
(iii) The Board of Directors of the Company has approved
the Scheme of Arrangement between Vedanta Limited
(“Demerged Company” or “Company”) and Resulting
Companies and their respective shareholders and
creditors under Section 230-232 and other applicable
provisions of the Companies Act, 2013 for the demerger
of the:
a.
Aluminum Undertaking (as defined in the Scheme)
of the Company to Resulting Company 1;
b.
Merchant Power Undertaking (as defined in the
Scheme) of the Company to Resulting Company 2;
c.
Oil and Gas Undertaking (as defined in the Scheme)
of the Company to Resulting Company 3;
d.
Base Metals Undertaking (as defined in
the Scheme) of the Company to Resulting
Company 4; and
e.
Iron Ore Undertaking (as defined in the Scheme) of
the Company to Resulting Company 5.
(iv) Redemption of Debentures and Commercial Papers:
NCDs:
ISIN
Maturity
Date
Face Value
No. of
instrument
INE205A08012
15 March
2024
10,00,000
8,000
CPs:
ISIN
Maturity
Date
Face Value
No. of
instrument
INE205A14WR8 17 July 2023
5,00,000
10,000
For Chandrasekaran Associates
Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No:4186/2023
Dr. S Chandrasekaran
Senior Partner
Membership No. F1644
Date: 24 April 2024
Certificate of Practice No. 715
Place: Delhi
UDIN: F001644F000215616
Notes:
i.
This report is to be read with our letter of even date which is annexed as Annexure-A and forms an integral part of this report.
ii.
We conducted the secretarial audit by examining the Secretarial Records including Minutes, Documents, Registers, and other records
etc., and some of them received by way of electronic mode from the Company and could not be verified from the original records. The
management has confirmed that the records submitted to us are true and correct.
Annexure-A to the Secretarial Audit Report
To,
The Members
Vedanta Limited
1st Floor, 'C' wing,
Unit 103, Corporate Avenue Atul Projects,
Chakala, Andheri (East) Mumbai,
Maharashtra- 400 093
Our Report of even date is to be read along with this letter.
1.
Maintenance of secretarial record is the responsibility
of the Management of the Company. Our
responsibility is to express an opinion on these
secretarial records based on our audit.
2.
We have followed the audit practices and processes
as were appropriate to obtain reasonable assurance
about the correctness of the contents of the
secretarial records. The verification was done on
the random test basis to ensure that correct facts
are reflected in secretarial records. We believe that
the processes and practices, we followed provide a
reasonable basis for our opinion.
3.
We have not verified the correctness and
appropriateness of financial records and Books of
Accounts of the Company.
4.
Wherever required, we have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
5.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is
the responsibility of Management. Our examination
was limited to the verification of procedures on random
test basis.
6.
The Secretarial Audit report is neither an assurance as
to the future viability of the Company nor of the efficacy
or effectiveness with which the Management has
conducted the affairs of the Company.
For Chandrasekaran Associates
Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No:4186/2023
Dr. S Chandrasekaran
Senior Partner
Membership No. F1644
Date: 24 April 2024
Certificate of Practice No. 715
Place: Delhi
UDIN: F001644F000215616
260
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
261
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
ANNEXURE D-1
Form No. MR-3
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration
Personnel) Rules, 2014]
SECRETARIAL AUDIT REPORT
For the financial year ended 31 March 2024
To,
The Members,
BHARAT ALUMINIUM CO LTD
Aluminium Sadan Core -6 scope Office Complex 7,
Lodhi Road, New Delhi, Delhi, 110003
CIN: U74899DL1965PLC004518
Authorised Capital: ` 5,00,00,00,000/-
Paid up Capital: ` 2,20,62,45,000/-
I 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 the "Company"). Secretarial Audit was
conducted in a manner that provided me a reasonable basis
for evaluating the corporate conducts/statutory compliances
and expressing my opinion thereon.
Further this report of even date is to be read along with
'Annexure-A' attached with this report.
Based on my verification of the BHARAT ALUMINIUM CO
LTD books, papers, minute books, forms and returns filed
and other records maintained by the Company and also the
information provided by the Company, its officers, agents and
authorised representatives during the conduct of Secretarial
Audit, I hereby report that in my opinion, the Company has,
during the audit period covering the financial year ended on
31 March 2024 complied with the statutory provisions listed
hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent,
in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and
returns filed and other records maintained by the Company
for the financial year ended on 31 March 2024 according to
the provisions of:
(i)
The Companies Act, 2013 (the "Act") and the rules
made thereunder;
(ii)
The Securities Contracts (Regulation) Act, 1956
("SCRA") and the rules made thereunder, Provisions of
this act are not applicable to the Company.
(iii) The Depositories Act, 1996 and the Regulations and
Bye-laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent of
Foreign Direct Investment, Overseas Direct Investment
and External Commercial Borrowings. Provisions of this
act are not applicable to the Company.
(v)
The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 ("SEBI Act") were not applicable to the Company
a)
The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b)
The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015;
c)
The Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements)
Regulations, 2018;
d)
The Securities and Exchange Board of India (Share
Based Employee Benefits and Sweat Equity)
Regulations, 2021;
e)
The Securities and Exchange Board of India
(Issue and Listing of Non-Convertible Securities)
Regulations, 2021;
f)
The Securities and Exchange Board of India
(Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act
and dealing with client;
g)
The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2021; and
h)
The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 2018;
(vi) The management has identified and confirm the
following law as specifically applicable to the Company:
a.
Employees State Insurance Act, 1948
I have also examined compliance with the applicable clauses
of the following:
(i)
Secretarial Standards issued by the Institute of
Company Secretaries of India.
(ii)
The Listing Agreements ("LODR") entered into by the
Company with Stock Exchange, said provisions are not
applicable to the Company.
During the period under review and as per the explanations
and clarifications given to us and the representation made
by management, the Company has generally complied with
the provision of the Act, Rules, Regulations, Guidelines,
Standards, etc. mentioned above. We further report that
compliance of applicable financial laws including Direct &
Indirect Tax laws by the Company has not been reviewed
in this Audit since the same has been subject to review by
Statutory Auditors and other designated Professionals.
I further report that the Board of Directors of the Company is
duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The
changes in the composition of the Board of Directors that
took place during the period under review were carried out
in compliance with the provisions of the Companies Act,
2013. Further, it was found that during the FY 2023-24 the
re-appointment of two Independent Directors i.e. Mr. Anoop
Kumar Mittal and Mr. Dindayal Jalan was approved through
Nomination and Remuneration Committee and Board of
Directors and is yet to be approved by the Members by
passing Special Resolution as per Section 149(10) of the
Companies Act, 2013.
As per the information and explanation provided, adequate
notice is given to all Directors to schedule the Board
Meetings, agenda and detailed notes on agenda were sent
at least seven days in advance except for the meetings
convened at shorter notice with due compliance of Act and
Secretarial Standards, and a system exists for seeking and
obtaining further information and clarifications on the agenda
items before the meeting and for meaningful participation at
the meeting. Majority decision is carried through while the
dissenting Members' views, if any are captured and recorded
as part of the minutes.
I further report that there are adequate systems and
processes in the Company commensurate with the size
and operations of the Company to monitor and ensure
compliance with applicable laws, rules, regulations
and guidelines.
I further report that during the audit period there were no
instances of:
(1) Public/Rights/Preferential issue of shares/sweat equity.
(2) Buy-back of securities.
(3) Major decisions taken by the members in pursuance to
section 180 of the Companies Act, 2013.
(4) Merger/amalgamation/reconstruction etc.
(5) Foreign technical collaborations.
For, Nitin Agrawal & Co.
CP No. 11931
Nitin Agrawal
(Proprietor)
M No: F-9684
Date: 12 April 2024
Peer Review Certificate No: 2989/2023
Place: Raipur (C.G.)
UDIN: F009684F000104262
Annexure-A to the Secretarial Audit Report
To
The Members,
BHARAT ALUMINIUM CO LTD
Aluminium Sadan Core -6scope Office Complex 7,
Lodhi Road, New Delhi, Delhi, India - 110 003
Our report of even date is to be read along with this letter.
1.
Maintenance of secretarial record is the responsibility of
the management of the Company. Our responsibility is
to express an opinion on these secretarial records based
on our audit.
2.
We have followed the audit practices and processes
as were appropriate to obtain reasonable assurance
about the correctness of the contents of the secretarial
records. The verification was done on 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.
3.
We have not verified the correctness and
appropriateness of financial records and Books of
Accounts of the Company.
4.
Where ever required, we have obtained the Management
representation about the compliance of laws, rules and
regulations and happening of events etc.
5.
The compliance of the provisions of corporate and
other applicable laws, rules, regulations, standards is
the responsibility of management. Our examination was
limited to the verification of procedures on test basis.
6.
The Secretarial Audit report is neither an assurance as
to the future viability of the Company nor of the efficacy
or effectiveness with which the management has
conducted the affairs of the Company.
For, Nitin Agrawal & Co.
CP No. 11931
Nitin Agrawal
(Proprietor)
M No: F-9684
Date: 12 April 2024
Peer Review Certificate No: 2989/2023
Place: Raipur (C.G.)
UDIN: F009684F000104262
262
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
263
Directors’ Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
REPORT ON CORPORATE GOVERNANCE
Company’s Philosophy on Code of Governance
As a reflection of its dynamic value system encompassing
its culture, policies, and relationships with its stakeholders,
Vedanta’s Corporate Governance philosophy is driven by
“Seven Pillars of Vedanta”. The pivotal focus on inclusive
growth permeates every facet of the organisation, shaping
its internal processes, governance structures, and business
administration mechanisms. Underpinning this vision is
the commitment to uphold good governance practices,
supported by rigorous policies and frameworks that drive
accountability and transparency. This is demonstrated in
shareholder returns, awards and recognitions, governance
processes and an entrepreneurial performance focussed
work environment.
At Vedanta, the commitment to good governance goes
beyond compliance and statutory norms. The Group truly
believes that purpose-led corporate governance and ethics-
led corporate behaviour are quintessential to success and
business excellence. These are indeed the foundation stones
on which Vedanta continues to build itself as not only India’s
largest diversified natural resources Company, but also the
most sustainable.
With highest levels of corporate governance and a culture
that values and rewards exemplary ethical standards,
personal and corporate integrity and respect for others,
Vedanta continues to carve its niche with global
benchmarks of all-round excellence in sustainability
and governance performance. Growing from strength
to strength, we continue to raise our bar across our
governance practices, ranging from our ground-
breaking Environmental, Social and Governance ("ESG")
commitments to best-in-class disclosure practices, Board
independence, alignment to globally accepted norms
and policies, and our emphasis on digitally empowered,
technology led business.
Our strong governance practices invariably underpin our
future transformation journey, where effecting responsible
change is a core mandate. Through this, we strive to push
ourselves better and also set newer benchmarks for the
industry and peers to adopt. We continue to facilitate
change in everything we do, and good governance is the
cornerstone that enables us to do so.
Compliance with Global Guidelines and Best
Practices
Your Company has been at the forefront in complying with
global best practices in Corporate Governance.
During the financial year, your Company has been selected
for accreditation in the World Finance Corporate Governance
Awards, recognised for the “Best Corporate Governance,
India 2024” in view of its 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.
World Finance is a leading global print and financial
publication providing analysis of the financial industry,
international business, and the global economy. With
renewed focus on accountability and transparency at
the highest levels, World Finance confers Corporate
Governance Awards every year to recognise those entities
who have shown unparalleled commitment on the corporate
governance agenda. The Award is thus, a testimony to the
Vedanta model of Corporate Governance in India that is
driven by thoughtful leadership and progressive outlook
to ensure best global practices through benchmarked
internal governance processes and compliance beyond
statutory requirements.
The Company has also been awarded as “Platinum Winner
Worldwide” for its Integrated Annual Report FY 2022‑23
in $10+ billion revenue category for excellence within its
industry at the League of American Communications
Professionals (“LACP”) Spotlight Awards.
The report has been ranked 29th among all entries worldwide
with a score of 99/100 points and is the only Indian report to
be ranked among Top 30 entries.
The LACP is a highly regarded award for corporate reporting
and communications receiving extensive participation
from companies representing various industries and
organisational sizes. The 2023 Spotlight Awards Global
Guiding Principles
Seven Pillars of Vedanta
Sustainability,
Health, Safety
& Environment
Giving back to
Community/
Society
Growth
Quality
Digitalisation,
Innovation,
Technology
& Excellence
Values,
Ethics
& Governance
People
We are committed
to Zero Harm,
Zero Discharge.
We ensure that
our security,
intelligence and
vigilance are
well integrated
by leveraging
technology.
We consider our
people are our
greatest asset. We
aspire to be the
best-in-class in
people practices
and encourage
their development
and support their
ideas to value
generation.
We actively
foster a culture of
mutual trust in our
interactions with
our stakeholders
and encourage an
open dialogue which
ensures mutual
respect. We aim for
Zero tolerance on
the fundamentals.
We embrace
adapting state-of-
the-art technology
as a driver in all
our processes.
We believe the
next phase of
growth can only be
achieved through
new technology &
innovation.
We are constantly
motivated on
improving our
costs and quality
through a culture
of benchmarking
best practices
and leveraging
analytics.
We are committed
to the triple
bottom line of
People, Planet and
Prosperity as we
grow exponentially
in all business
thereby making
contributions to
the nation at large.
Transparency
and
Accountability
Policies and
Regulatory
Framework
Management/
Board and
Committees
Values and
Ethics
Monitoring and
Internal Control
Executing
Strategy and
Managing Risk
We are
committed
to contribute
and empower
communities
thereby making
a positive impact
on human life.
Communications Competition fetched one of the largest
number of submissions ever, with nearly 1,500 organisations
representing 12+ 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 with
utmost transparency.
In line with our commitment to bring in the best-in-class
global reporting and innovative practices, Vedanta Limited
also emerged as a double-winner at the International AVA
Digital Awards 2024 with a Platinum Award in the category
of e-Annual Reports and for Creative Web-Based Production
on the Company website.
The Awards received 2,700 entries globally and Vedanta
Limited is among only 4 companies from India who won
Platinum Award at AVA. This achievement is a testament to
our outstanding efforts in digital and creative journey.
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 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.
With this, we constantly invest our time and resources in
introspecting our actions to improve even further. 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 the 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 a Non-
Executive 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 chaired by a
Non-Executive Independent Director;
•
Board Diversity Policy in place as a sub-set of
Nomination & Remuneration Policy (“NRC Policy”).
Further, in order to employ best practices in regard
to Diversity, Equity and Inclusion ("DEI"), there is
also a separate Policy on DEI; and
•
Separate Roles of Chairman and Executive Director
held by different individuals.
264
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
265
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Digitalisation Initiatives:
Initiatives for Stakeholders:
Additional Disclosures/Reports:
•
Insider Trading Monitoring Tool and awareness
programs on Insider Trading;
•
Unpublished Price Sensitive Information (“UPSI”)
Sharing online database;
•
Online Gift Declaration Portal;
•
Complete and robust online system for ensuring
compliances across all locations and functions;
•
Online Platform for Performance Evaluation of
Directors, Board and its Committees;
•
Online Secured Platform for circulation of
documents to Directors enabling them to mark
annotations and access the repository of archived
meetings’ papers;
•
NSDL facility for registering email IDs;
•
Shareholder Service Centre: Facility on website for
updations of PAN, Bank mandate and email IDs as
well as grievance resolutions 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
IDs, PAN and Bank mandate by emphasising on
the benefits;
•
Online Speaker registration and Chat Facility during
Annual General Meeting (“AGM”) of the Company;
•
Online Survey for Shareholder feedback;
•
Sustainability Report prepared in accordance with
Global Reporting Initiative (“GRI”) Standards and
aligned with United Nations Sustainable Development
Goals (“UN SDGs”) and United Nations Global
Compact (“UNGC”) Principles;
•
Tax Transparency Report (“TTR”) to give holistic
perspective of our contributions made to the
exchequer in India and globally as well;
•
Mandatory Computer-Based Training (“CBT”) for Group
employees on Cyber-Security Awareness;
•
Cyber-Security Training for Independent Directors in
liaison with an external agency;
•
Maintenance of Digital Repository/Database with respect
to subsidiaries of the Company; and
•
Implementation of Bi-Monthly online confirmation portal
for material events and Information requiring disclosure
under Regulation 30 of the Securities and Exchange
Board of India ("SEBI") (Listing Obligations and Disclosure
Requirements), 2015 ("Listing Regulations"). All units
and subsidiaries provide confirmation(s) that there are no
other events or information that required reporting to stock
exchange(s), other than those already reported by them.
•
Conducted first of its kind ‘Shareholders’ Townhall
with Chairman’ through video conferencing inviting
shareholders across geographies to interact directly
with the Chairman;
•
Conduct of Analysts’ Meet on 27 February
2024 and Investor Meet on 20 March 2024
for engagement of key stakeholders with the
Management officials. The details of these events
can be accessed at www.vedantalimited.com; and
•
Email to Shareholders on Quarterly Results,
Chairman Messages, Reporting Suite including
Integrated Annual Report, Tax Transparency Report,
Sustainability Report, TCFD Report, Social Impact
Report etc.
•
Task Force on Climate related Financial
Disclosures ("TCFD") Report on Climate
Change till FY 2022-23 and Climate Action
Report for FY 2023-24; and
•
Social Impact Report published by Anil Agarwal
Foundation, the Company’s philanthropic arm.
Integrated Reporting
Since inception, Vedanta has taken conscious efforts
to operate and sustain in a manner responsible to all
stakeholders. Every decision and action at the Company
are taken after considering the consequential impact on
the Company’s relevant stakeholder groups. This is a vivid
reflection of the organisation’s integrated thinking which
takes into account all the resources and relationships that
activities. Starting FY 2017-18, the Company has proactively
commenced reporting its annual performance and strategy
using an Integrated Report, using the content elements
and the guiding principles outlined in the International
Integrated Reporting framework. The organisation has
Sustainability Reporting Journey at Vedanta
Your Company has been publishing the Sustainability
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 UNGC
and aligns to UN SDGs. It should be considered as our
Communication of Progress, which reports our approach
and disclosure towards triple bottom line principles – People,
Planet and Profit.
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 the International Council on
Mining and Metals ("ICMM").
For further insights into the sustainability practices adopted
by your Company, the Sustainability Report for FY 2023-24
shall be made available at www.vedantalimited.com.
Vedanta also produces two additional reports that disclose
our ESG strategy and performance:
affect the 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
continued its Integrated Reporting journey and its FY 2023-
24 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:
(i)
Business Responsibility and Sustainability Report
(“BRSR”), aligned to the guidelines laid down by SEBI.
The BRSR report can be found within the Integrated
Annual Report.
(ii)
TCFD Report on Climate Change till FY 2022-23, aligned
to the guidelines laid down by the Financial Stability
Board, and Climate Action Report for FY 2023-24
covering the aspects of TCFD and International Financial
Reporting Standard S2 framework. This report discloses
in detail, the Company’s strategy in addressing and
adapting to the impacts of climate change.
Tax Transparency Reporting ("TTR")
As pioneers in transparent reporting, Vedanta led the
industry in transparently publishing our Tax contributions,
setting a standard for corporate accountability and ethical
fiscal practices. This dedicated endeavour is a testament
to our commitment to all our stakeholders to provide
greater transparency and disclosure of profits earned and
contributions made to the Governments in the jurisdictions
in which we operate. The Company’s voluntary TTR provides
a comprehensive overview of its fiscal contributions,
showcasing a commitment to accountability and ethical
business practices. Through detailed disclosures of tax
Intellectual
Capital
As a relatively young Company,
the Company is keen to embrace
technological developments. The
Company is setting up a centre of
technological excellence in South
Africa, enabling them to nurture
and implement innovative ideas
across the business, which lead to
operational improvements.
Social & Relationship
Capital
The Company aims to forge strong
partnerships by engaging with its key
stakeholders, including shareholders
and lenders, suppliers and
contractors, employees, governments,
communities and the society in
general. These relationships help
maintain and strengthen Vedanta’s
licence to operate.
Manufactured
Capital
The Company invests in assets
including best-in-class equipment
and machinery to ensure it operates
as efficiently and safely as possible
both at its current operations and
in its expansion projects. This also
supports its strong and sustainable
cash flow generation.
Human
Capital
The Company has employees from
across the world and it is committed
to provide them with a safe and
healthy work environment. In addition,
by creating a culture that nurtures
innovation, creativity and diversity, it
enables them to grow personally and
professionally while also helping to
meet our business goals.
Natural
Capital
India and Africa have favourable geology
and mineral potential and these regions
provide the Company with world-class
mining assets, which are structurally at
low cost and have extensive Reserves
& Resources. Additionally, operating
the Company's mines requires a range
of resources, including water and
energy, which the Company aims to use
prudently and sustainably.
Financial
Capital
The Company is focused on
optimising capital allocation and
maintaining a strong balance sheet
while generating strong Free Cash
Flows. It also reviews all investments,
taking into account the Group’s
financial resources with a view to
maximising returns to shareholders.
266
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
267
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
payments and contributions to the exchequer, the report
enhances transparency, builds stakeholder trust and fosters a
dialogue on responsible corporate citizenship.
The report focuses on our approach to Tax Governance and
Strategy and includes the following:
•
Tax Principles;
•
Tax Risk Management framework, Control and
Compliance framework;
•
Response to Stakeholders and Tax Environment; and
•
Tax Approach in our jurisdictions.
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, and approach to tax complexities. The narration
demonstrates our strong governance structure that promotes
and ensures adherence to regulations while encouraging tax
efficiency in operations. The contributions, that are direct
and indirect in nature, are categorically provided for all the
countries where we have significant operations.
Our guiding Tax Principles serve as a compass, guiding our
decisions with integrity, transparency, and adherence to
compliance in fiscal matters. Our tax principles are closely
aligned with the "B Team Responsible Tax Principles".
Tax Principles governing us:
Trust: To maintain high standards of
integrity with respect to tax compliance
and reporting.
Compliance: To observe all applicable laws,
rules and regulations in the countries where
we operate, including transfer pricing and to
meet all tax compliance requirements in a
timely manner.
Transparency: To proactively disclose
detailed information about the overall
tax contribution of the Group to the
governments of the countries where
we operate.
Economic Substance: We only undertake
transactions which will have results that are
consistent with the underlying economic
consequences, including tax structures with
commercial substances.
Processes and Controls: Ensuring meticulous
documentation of transactions and tax positions
with diligent professional care and judgment, making
decisions at the highest level and backing them with
robust evidence.
Engagement with Regulators: Working positively,
proactively, and transparently with tax authorities
to minimise the extent of disputes, achieve early
agreement on any disputed issues when they arise,
and achieve certainty wherever possible.
Risk Management: To identify tax risks in a
consistent and formal manner and communicate
these where appropriate to the Audit & Risk
Management Committee and the Board.
Proactive Consultation: To actively participate in tax
policy consultation processes where appropriate at
a national or international level.
People Progress: To develop our people, through
training, experience, and opportunity.
The report for FY 2023-24 is available on the website at www.vedantalimited.com.
Corporate Governance Framework – Resilience
for Purposeful Action
A well-developed governance framework plays an integral
role in delivering resilience and operational transparency.
With a diligently focused governance philosophy, Vedanta
has a multi-tiered governance structure with defined roles
and responsibilities of every constituent of the governance
system. The Board and Senior Leadership teams strike a
balance between mitigating risk and sustaining profitable
growth. This helps in nurturing a resilient organisation
which is adaptable, agile, responsive and robust. It is able to
utilise new opportunities while also recovering quickly from
unforeseen challenges. The details of Risk Management
frameworks have been included in the earlier section of the
Integrated Annual Report.
Vedanta 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
Stakeholder
Governance
Integrity and
Transparency
Compliance
and Reporting
ESG
Strategy, Planning
and Performance
Risk Management
Board of Directors
The Board of Directors is an apex body and a diversely
constituted board creates an enlightened culture of
leadership providing long-term vision and improving the
governance practices with effective oversight. The Board
of Directors hold a fiduciary position; exercise appropriate
control and independent judgement; monitor effectiveness
of the Company’s governance mechanisms; and supervise
the strategic decisions on behalf of all stakeholders
including shareholders.
Representing a confluence of complementary skills,
attributes, perspectives, expertise in critical areas and diverse
backgrounds, the Board at Vedanta Limited plays a crucial
role in guiding, overseeing, monitoring strategy, performance
and long-term success of the Company as a whole through
strategic direction.
In line with the recommendations 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. Each Committee has a clearly defined charter
containing the specific terms of reference and scope
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.
Board’s Role in driving Leadership for Excellence
and Innovation
The Board of the Company lays significant emphasis on the
business performance of the Company including 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 Chief
Executive Officers (“CEO”) and Chief Financial Officers
(“CFO”) who directly report to the Group Executive Director
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.
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.
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.
Corporate Governance Framework
268
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
269
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Chairman
•
Leads the Board and ensures that it discharges its
responsibilities effectively;
•
Develops succession plan for Board appointments for
approval by the Board;
•
Identifies strategic priorities and new business
opportunities to enhance shareholder value;
•
Promotes the highest standards of integrity, probity
and governance;
•
Chairs the Board meeting and facilitates active
engagement of all Directors;
•
Oversees the Director’s induction, performance and
ongoing development; and
•
Engages with Company’s stakeholders to ensure
that an appropriate balance is maintained between
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;
The reporting structure, as shown below, between the Board, Board Committees and Management Committees forms the
backbone of the Group’s Corporate Governance framework.
Separate Role of Chairman and Executive Director
The roles and responsibilities of the Chairman of the Board and Executive Director have been demarcated and the positions are
held by separate individuals. Further, during FY 2023-24, the Company also had a separately designated CFO and Company
Secretary (“CS”) & Compliance Officer.
Changes in Directors/Key Managerial Personnel (“KMP”) of the Company during FY 2023-24:
Director/KMP
Designation
Nature of Change (Appointment/
Re-appointment/Cessation)
Date of Change
Tenure Till
Dindayal Jalan1
Non-Executive Independent
Director
Re-appointment
01 April 2023
31 March 2026
Navin Agarwal2
Whole-Time Director designated
as Executive Vice-Chairman
Re-appointment
01 August 2023
31 July 2028
Priya Agarwal Hebbar3
Non-Executive Director
Re-appointment
17 May 2023
16 May 2028
Sunil Duggal4
Whole-Time Director & CEO
Cessation on completion of tenure
01 August 2023
NA
Arun Misra5
Executive Director
Appointment
01 August 2023
31 May 2025
Sonal Shrivastava6
Chief Financial Officer
Appointment
Cessation
01 June 2023
25 October 2023
NA
Ajay Goel7
Chief Financial Officer
Cessation
Appointment
10 April 2023
30 October 2023
NA
1. Mr. Dindayal Jalan has been re-appointed as a Non-Executive Independent Director of the Company for a second and final term of three
(03) years effective from 01 April 2023.
2. Mr. Navin Agarwal has been re-appointed as a Whole-Time Director designated as Executive Vice-Chairman of the Company for a period of
five (05) years effective from 01 August 2023.
3. Ms. Priya Agarwal Hebbar has been re-appointed as a Non-Executive Director of the Company for a period of five (05) years effective from
17 May 2023.
4. Mr. Sunil Duggal superannuated on completion of his tenure as the Whole-Time Director & CEO of the Company effective close of business
hours on 31 July 2023.
5. Mr. Arun Misra has been appointed as a Whole-Time Director designated as Executive Director of the Company effective from 01 August 2023.
6. Ms. Sonal Shrivastava had been appointed as the CFO & KMP of the Company with effect from 01 June 2023. Thereafter, she tendered her
resignation as the CFO & KMP of the Company with effect from close of business hours on 24 October 2023.
7. Mr. Ajay Goel ceased to be the Acting CFO & KMP of the Company with effect from close of business hours on 09 April 2023. As part of
our structured re-hiring program “Gharwapsi”, he joined back and was appointed as the CFO & KMP of the Company with effect from
30 October 2023.
Particulars of Senior Management Personnel (“SMP”) including Changes therein during FY 2023-24:
SMP
Designation
Nature of Change during FY 2023-24, if any
(Appointment/Re-appointment/Cessation)
Madhu Srivastava1
Group CHRO
-
John Slaven2
CEO – Aluminium Business
Appointment effective from 03 October 2023
Nicholas John Robert Walker3
CEO – Cairn Oil & Gas
Cessation effective from 04 August 2023
1. The Board of Directors of the Company, on the recommendation of the Nomination & Remuneration Committee, approved the identification
of Ms. Madhu Srivastava as SMP in the meeting held on 07 May 2019.
2. The Board of Directors of the Company, on the recommendation of the Nomination & Remuneration Committee, approved the appointment
of Mr. John Slaven as CEO – Aluminium Business and designated him as SMP effective from 03 October 2023.
3. Mr. Nicholas John Robert Walker (“Nick”) ceased to be CEO – Cairn Oil & Gas and SMP effective from 04 August 2023.
•
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 IR including key leadership development.
Executive Director
•
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.
Chairperson
Member
Executive
Director(s)
Board of Directors
Executive
Committee
Audit & Risk
Management
Committee
UK Sinha
Dindayal Jalan
Akhilesh Joshi
Stakeholders'
Relationship Committee
Dindayal Jalan
UK Sinha
Padmini Sekhsaria
Arun Misra 1
Corporate Social
Responsibility
Committee
Akhilesh Joshi
UK Sinha
Padmini Sekhsaria
Priya Agarwal Hebbar
Nomination &
Remuneration
Committee
UK Sinha
Anil Agarwal
Dindayal Jalan
ESG Committee
UK Sinha
Akhilesh Joshi
Priya Agarwal Hebbar
Arun Misra 1
Share & Debenture
Transfer Committee
Dindayal Jalan
Anupam Kumar 2
Jagdeep Singh 3
Committee of
Directors
Navin Agarwal
Dindayal Jalan
Arun Misra 1
1 Mr. Arun Misra, Executive Director of the Company had been inducted as the Member of Stakeholders' Relationship Committee, ESG
Committee and Committee of Directors with effect from 01 August 2023.
2 Mr. Anupam Kumar, Dy. CFO of the Company had been inducted as the Member of the Share & Debenture Transfer Committee with effect from
12 May 2023.
3 Mr. Jagdeep Singh ceased to be a Member of the Committee with effect from 29 April 2024.
Shareholders
Board Composition and Size
The Board comprises of a One-Tier Structure with an
optimum mix of Executive, Non-Executive, Independent
and Women Directors from diversified backgrounds
possessing 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 2024, 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
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.
270
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STATUTORY REPORTS
FINANCIAL STATEMENTS
271
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Tenure Analysis of Board of Directors as on 31 March 2024
Tenure
(No. of Directors)
Board Diversity
Average Tenure as on 31 March 2024
(in years)
50%
75%
25%
25%
25%
Independent Director
Executive Director
Non-Executive
Non‑Independent Director
Men
Women
< 2 years
≥ 2 years
< 4 years
≥ 4 years
< 6 years
≥ 6 years
1
3
3
3.74
5.65
5.44
4.64
1
Independent
Directors
Executive
Directors
Non-Executive
Non-Independent
Directors
Board
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.
Diversity, Equity, and Inclusion (DEI)
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.
We are committed to providing equal opportunities in
employment and creating an inclusive workplace and work
culture in which all employees are treated with respect,
care, fairness, sensitivity, and dignity. Workforce diversity is
Our workplace policies play an important role in reinforcing a
culture on founding principles of DEI. 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, Equity & Inclusion
Policy which shall help us define, 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 DEI
for businesses across the Vedanta Group. The policy can be
accessed at www.vedantalimited.com.
The key KPIs which we regularly monitor are:
•
Gender Diversity (%)
•
Gender Diversity in decision making bodies (%)
•
Gender Diversity in enabling functions (%)
•
Gender diversity in technical/shopfloor functions (%)
•
Diversity beyond gender – Specially abled, LGBTQ etc. (Nos.)
Global Diversity and Inclusion Benchmarks Model
Internal processes and policies
External partnerships
Foundation
Bridging
•
Recruitment, development, and advancement
•
Policies on workplace conduct, benefits, work-life
balance and flexibility
•
Job design, classification, and compensation
•
D&I education and training
•
Community, government relations and social
responsibility
•
Industry bodies partnership
•
Diversity and Inclusion vision, strategy, and
business case
•
Leadership and accountability
•
Leadership and employees' competence and
diversity intelligence
•
Infrastructure and execution principles
•
Assessment, communication, and sustainability
Additionally, the Company has in place a Board Diversity
Policy as a subset of the above policy. This policy can be
accessed at www.vedantalimited.com.
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.
Key Board Qualifications, Skills, and Attributes
The table below summarises the key qualifications, skills and attributes which are taken into consideration while nominating
to serve on the Board and to function effectively. While all the Board members possess the identified skill, their domain of core
expertise is given in the table.
Business Leadership
Sustainable success
in business at a senior
executive level
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
Financial expertise
Proficiency in financial accounting
and reporting, corporate finance and
internal controls, corporate funding,
and associated risks
Corporate Governance
Experience with a
major organisation that
demonstrates rigorous
governance standards
Mergers
and Acquisition
Experience in corporate
transactions and actions
and joint ventures
Capital Projects
Experience working in an
industry with projects involving
large-scale long-cycle
capital outlays
Government and
International Relations
Interaction with
Government and regulators
and involvement in public
policy decisions
Global Experience
Experience in multiple global
locations, exposed to a range of
political, cultural, regulatory and
business environments
ESG
Familiarity with issues associated
with workplace health and safety,
asset integrity, environment and social
responsibility, and communities
Technology/Digital
A strong understanding of
technology and innovation,
and the development and
implementation of initiatives
to enhance production
a business imperative at our organisation, and we strive to
ensure that our workforce is representative of all sections
of the society. We believe that, by doing so, we would be
equipped to deliver better business results.
The Vedanta Group deploys benchmark model which focuses
on a holistic approach ensuring to create an everlasting
workplace culture for individuals from diverse background
irrespective of gender, ethnicity, region, religion, physical
ability, age, and sexual orientation are representative of a
variety of perspectives and experiences.
The model is derived from the Global Diversity & Inclusion
Benchmark Model O Mara and Richter 2014 which focuses
on four major areas:
272
CORPORATE OVERVIEW
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273
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Board of Directors
Anil Agarwal
Non-Executive Chairman
DIN: 00010883
Padmini Sekhsaria
Independent Director
DIN: 00046486
Priya Agarwal Hebbar
Non-Executive Director
DIN: 05162177
Akhilesh Joshi
Independent Director
DIN: 01920024
Navin Agarwal
Executive Vice-Chairman
DIN: 00006303
Dindayal Jalan
Independent Director
DIN: 00006882
UK Sinha
Independent Director
DIN: 00010336
Arun Misra
Executive Director
DIN: 01835605
Age (As on 31 March 2024)
71 years
Initial Date of Appointment
01 April 2020
Date of Re-appointment
NA
Tenure Till
NA
Tenure as on 31 March 2024
4 years
Shareholding
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
Area of Expertise
Age (As on 31 March 2024)
48 years
Initial Date of Appointment
05 February 2021
Date of Re-appointment
05 February 2023
Tenure Till
04 February 2025
Tenure as on 31 March 2024
3.2 years
Shareholding
Nil
Board Membership –
Other Indian Listed Companies
Everest Industries Limited
Non-Executive Non-Independent
Director
No. of Directorships in
Public Limited Companies
2
Member/Chairperson in
Committee(s)
Member: 1
Chairperson: Nil
Area of Expertise
Age (As on 31 March 2024)
34 years
Initial Date of Appointment
17 May 2017
Date of Re-appointment
17 May 2023
Tenure Till
16 May 2028
Tenure as on 31 March 2024
6.9 years
Shareholding
Nil
Board Membership –
Other Indian Listed Companies
Hindustan Zinc Limited
Non-Executive Chairperson
No. of Directorships in
Public Limited Companies
2
Member/Chairperson in
Committee(s)
Member: Nil
Chairperson: Nil
Area of Expertise
Age (As on 31 March 2024)
70 years
Initial Date of Appointment
01 July 2021
Date of Re-appointment
01 July 2022
Tenure Till
30 June 2024
Tenure as on 31 March 2024
2.8 years
Shareholding
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
Area of Expertise
Age (As on 31 March 2024)
63 years
Initial Date of Appointment
17 August 2013
Date of Re-appointment
01 August 2023
Tenure Till
31 July 2028
Tenure as on 31 March 2024
10.6 years
Shareholding
Nil
Board Membership –
Other Indian Listed Companies
Hindustan Zinc Limited
Non-Executive Director
No. of Directorships in
Public Limited Companies
2
Member/Chairperson in
Committee(s)
Member: Nil
Chairperson: Nil
Area of Expertise
Age (As on 31 March 2024)
67 years
Initial Date of Appointment
01 April 2021
Date of Re-appointment
01 April 2023
Tenure Till
31 March 2026
Tenure as on 31 March 2024
3 years
Shareholding
11,000 shares
Board Membership –
Other Indian Listed Companies
None
No. of Directorships in
Public Limited Companies
3
Member/Chairperson in
Committee(s)
Member: 4
Chairperson: 2
Area of Expertise
Age (As on 31 March 2024)
72 years
Initial Date of Appointment
13 March 2018
Date of Re-appointment
11 August 2021
Tenure Till
10 August 2024
Tenure as on 31 March 2024 6.1 years
Shareholding
Nil
Board Membership –
Other Indian Listed
Companies
Havells India Limited
Independent Director
Nippon Life India Asset
Management Limited
Independent Director and Chairperson
SIS Limited
Independent Director
New Delhi Television Limited
Independent Director and Chairperson
Cube Highways Fund Advisors
Private Limited (InvIT listed)
Independent Director
No. of Directorships in
Public Limited Companies
7
Member/Chairperson in
Committee(s)
Member: 9
Chairperson: 4
Area of Expertise
Age (As on 31 March 2024)
58 years
Initial Date of Appointment
01 August 2023
Date of Re-appointment
NA
Tenure Till
31 May 2025
Tenure as on 31 March 2024
0.7 years
Shareholding
94,277 shares
Board Membership –
Other Indian Listed Companies
Hindustan Zinc Limited
Whole-Time Director & CEO
No. of Directorships in
Public Limited Companies
4
Member/Chairperson in
Committee(s)
Member: 3
Chairperson: Nil
Area of Expertise
Profile available at www.vedantalimited.com
Profile available at www.vedantalimited.com
Notes
•
The number of directorships (hereinafter referred to as
“Mandates” or “Directorships”) in Public Limited Companies
includes Vedanta Limited.
•
As per Regulation 26 of the Listing Regulations, 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 Limited
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.
•
The Company has not issued any convertible instruments. Hence,
none of the Directors hold any such instruments.
274
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FINANCIAL STATEMENTS
275
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Declarations and Confirmations
With respect to directorship and membership of the Directors, it is
hereby confirmed that:
1.
None of the Directors:
a)
is a Director in more than ten (10) public limited
companies in terms of Section 165 of the Act;
b)
holds directorship in more than seven (07) listed entities
pursuant to Regulation 17A(1) of Listing Regulations;
c)
acts as an Independent Director in more than seven
(07) listed entities pursuant to Regulation 17A(1) of
Listing Regulations;
d)
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;
e)
is a member of more than ten (10) Board level
committees of Indian public limited companies pursuant
to Regulation 26(1) of Listing Regulations;
f)
is a Chairperson of more than five (05)
committees across all companies in which he/
she is a director pursuant to Regulation 26(1) of
Listing Regulations;
g)
is related to other Directors except Ms. Priya
Agarwal Hebbar, Mr. Navin Agarwal and Mr. Anil
Agarwal. Ms. Priya Agarwal Hebbar is the
daughter of Mr. Anil Agarwal and Mr. Anil Agarwal
is the elder brother of Mr. Navin Agarwal;
h)
who is serving as a Non-Executive Director of
the Company, has attained the age of seventy-
five years pursuant to Regulation 17(1A) of
Listing Regulations.
2.
The Company has received declarations from all the
Independent Directors of the Company confirming that
they meet the criteria of independence prescribed under
the Act and Listing Regulations.
Process for Board of Directors, KMP and SMP
Appointments
The Board, with the support of the Nomination and
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
recruitment firms, senior leaders, and advisors in the
industry etc.
Following the comprehensive mapping, the candidates are
shortlisted based on the parameters such as qualification,
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.
Board Familiarisation and Induction Program
The 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, structure
and risks. As a part of an ongoing familiarisation process, the directors are updated about the significant regulatory/industry
changes on regular basis through formal reporting process.
Process for Selection and Appointment of new Directors:
The criteria for nominating a candidate for directorship has been provided for in the NRC Policy of the Company which can be
accessed at www.vedantalimited.com.
Identification of
Candidate to be
appointed as Director
NRC is responsible for
identification and 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
Orientation Program upon induction of New Directors
Other Initiatives to update the Directors on a continual basis:
Roles & Responsibilities
Briefing about role, responsibilities, duties and
obligations as member of the Board.
Active Communication Channel
An active communication channel with
executive management which allows free
flow of communication among directors.
Plant/Site Visits
Visits to plants and business locations are
organised periodically to provide insights into
the Company’s operations.
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.
Interactive Sessions
Interactive sessions with senior management,
business and functional heads.
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.
Trainings
1.
Education to the directors for deeper
knowledge and understanding of key
ESG issues and advancing the field of
sustainability by enabling incorporation of
ESG in decision-making and operations.
2.
Training on major issues relating to
Information Security and Data Governance.
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-a-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.
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.
Identification of key critical positions
across businesses;
2.
Assessment of potential employees and
identification of 3 stage successors; and
3.
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.
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277
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Integrated Report and Annual Accounts 2023-24
•
Strong Management in Place
(“MIP”) with right people in
right roles
•
Develop Top talent for future
leadership roles
•
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
Leadership Succession Planning
•
Successors prepared and ready
to take over even before the
position is vacant
•
A “future-proof” workforce
better prepared to thrive in
dynamic conditions
•
Greater organisational stability
and resilience
Objective
Approach
Outcome
Processes to avoid Conflicts of Interest for
Directors/KMPs/SMPs
Your Board has in place a well-defined process with
respect to disclosure of interest and associated matters in
accordance 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
The Independent Directors of the Company abide
by the definitions/criteria prescribed in the Act and
Listing Regulations.
Based on the disclosures received from all the Independent
Directors and in the opinion of the Board, the Independent
Directors fulfil the conditions specified in the Act, the Listing
Regulations and are independent of the Management.
As on 31 March 2024, the Board consists of 04 Independent
Directors, out of which one is woman.
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 one
meeting in a financial year, without the presence of Non-
Independent Directors and members of the Management.
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 Executive
Director(s).
Additionally, the Independent Directors also met separately
with the Statutory Auditors thrice during the year 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 2023-24, the Independent Directors met without
the presence of management on 29 September 2023 (for
considering the demerger proposal) and 20 March 2024
chaired by Mr. UK Sinha.
Databank Registration of Independent Directors
Pursuant to the MCA notification dated 22 October 2019,
requisite confirmations have been received from all the
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,
75%
25%
Men
Women
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
recognises the benefit of evaluation exercise that provides
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 in consultation with NRC, lay down the evaluation
criteria for the performance of the Chairman, Vice-Chairman,
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 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 matters identified in the
previous evaluation, and assist in identifying any potential for
improvement in the Board’s processes as given below:
Tailored
questionnares
prepared by
external agency and
confirmed with the
chairperson of NRC;
Secured online
platform for
providing
the responses;
Results of the
evaluation compiled
by the external
agency without
involvement of
the management
Sharing of
evaluation
results; and
Outcome and
feedback discussed
at the NRC,
Seperate Meeting
of Independent
Directors and Board
Meeting and Action
Plan agreed.
Board as a whole
•
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.
Board Committees
•
Committee Meetings and
Information;
•
Effectiveness of
Committee in terms of
well-defined policies and
charters;
•
Committee Composition
and Operation;
•
Specific Committee
responsibilities;
•
Progress against
development areas.
Individual Directors
•
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.
Chairman &
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.
Results of Performance Evaluation
Individual Directors Evaluation
Board Self Evaluation
Chairman/Vice-Chairman Evaluation
Committee 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.
•
Report shared with all Directors;
•
Results discussed in meeting of NRC
and Board and separate meeting of
Independent Directors.
•
Summary report shared with the Chairperson
of NRC;
•
Evaluation results also discussed in separate
meeting of Independent Directors.
•
Summary report shared with all Directors;
•
Results discussed in meeting of NRC and Board and
separate meeting of Independent Directors.
278
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
279
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Outcome of Performance Evaluation
The evaluation concluded with overall positive ratings and
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 performing with suitable mix
of expertise that continue to exhibit a collaborative and
beneficial mindset, creating a conducive environment at
Board meetings for participation and challenge. The Board
in junction with its committees is functioning effectively
Board and Executive Leadership Remuneration
Policy
The Remuneration Policy is significant in ensuring that
competitive and impartial rewards are linked to key
deliverables and are also in line with market practices and
shareholders’ expectations.
The NRC ensures that remuneration policies and practices
are framed and intended to attract, retain and encourage
the Executive Directors and the senior management group,
while simultaneously meeting the delivery of the Group’s
strategic and business objectives. The NRC further ensures
the interests of the Executive Directors and the senior
management group are aligned with those of shareholders, to
build a sustainable performance environment.
Remuneration Components:
The Executive Directors' remuneration has two components:
fixed pay and annual variable pay including stock incentives
(performance linked incentive). The fixed component is based
upon the industry practice and benchmarks considering the
experience, skill, knowledge and job responsibilities. The
Meetings of the Board and Committees
towards its duties as all the important issues which in
addition to Committee’s terms of reference are brought up
and discussed in the meetings. The Directors appreciated
the remarkable quality of plants and assets possessed by
the Company and the leadership quality. The Directors also
highly regarded the consistency in maintaining the balance
between short-term and long-term goals and the CSR and
ESG initiatives undertaken by the Company. The effectiveness
review identified some opportunities for the Board which will
be acted upon going forward.
performance linked incentive is linked to the achievement
of the Company and individual performance goals. Such
variable compensation is ‘at risk’, and rewards performance
and contributions to both short-term and long-term financial
performance of the Company. The remuneration of the
Executive Directors 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 at www.vedantalimited.com. The Board decides the
payment of commission within the limits approved by the
members subject to the limit not exceeding 1% of the net profits
of the Company. Further, it may be noted that no stock options
were issued to the Non‑Executive Independent Directors during
the year.
The details of remuneration paid/payable to the Directors
during FY 2023-24 are as follows:
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 are
finalised with the inputs from the Board members and
are approved by the Board. Additional agenda matters
are taken up on requirement basis.
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.
Circulation of Agenda
•
The Agenda is finalised by the CS, in discussion
with the CFO, Executive Director, Vice-Chairman
and Chairman;
•
All the Agenda papers are disseminated electronically
on a real-time basis. The papers are uploaded on
a secured online platform specifically designed
for this purpose, thereby eliminating circulation of
printed agenda papers. The online platform also
enables the Board to access the historical agendas,
minutes, constitutional documents, committee
charters etc. It enables the participants to make notes
and exchange notes amongst each other under a
secured environment;
•
The Agenda papers other than in nature of 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.
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 CS records minutes
of all the Board and
Committee meetings.
Post Meeting summary/
Follow-up
•
Post conclusion of each of the
Board/Committee meeting, the
CS 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.
Remuneration paid or payable to Directors for the year ended 31 March 2024
Name of the Director
Relationship
with other
Directors(1)
Sitting Fees
Salary and
Perquisites(8)
Provident, and
Superannuation
Funds
Commission to
non-executive
directors/
performance
incentive for
the Executive
Directors(9)
Total
Vedanta
Limited
ESOS 2020,
ESOS 2021,
ESOS 2022,
ESOS 2023
(10)
NON-EXECUTIVE CHAIRMAN
Anil Agarwal
Refer Note(1)
15,00,000
-
-
-
15,00,000
-
TOTAL
15,00,000
-
-
-
15,00,000
-
EXECUTIVE DIRECTORS
Navin Agarwal(2)
Refer Note(1)
-
12,13,40,024
64,82,095
10,00,00,000
22,78,22,119
-
Sunil Duggal(3)
None
-
2,57,33,119
9,86,064
3,00,00,000
5,67,19,183
3,42,800
Arun Misra(4)
None
-
-
-
-
-
-
TOTAL
-
14,70,73,143
74,68,159
13,00,00,000
28,45,41,302
3,42,800
INDEPENDENT NON-EXECUTIVE DIRECTORS
UK Sinha
None
31,00,000
-
-
75,00,000
1,06,00,000
-
Dindayal Jalan(5)
None
29,00,000
-
-
75,00,000
1,04,00,000
-
Akhilesh Joshi(6)
None
25,00,000
-
-
75,00,000
1,00,00,000
-
Padmini Sekhsaria
None
10,00,000
-
-
75,00,000
85,00,000
-
TOTAL
95,00,000
-
-
3,00,00,000
3,95,00,000
-
NON-INDEPENDENT NON-EXECUTIVE DIRECTORS
Priya Agarwal Hebbar(7)
Refer Note(1)
15,00,000
-
-
1,45,00,000
1,60,00,000
-
TOTAL
15,00,000
-
-
1,45,00,000
1,60,00,000
-
GRAND TOTAL
1,25,00,000
14,70,73,143
74,68,159
17,45,00,000
34,15,41,302
3,42,800
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 ` 6,75,000 and
` 29,92,500 respectively during FY 2023-24 not included above.
Mr. Navin Agarwal has been awarded 3,51,000 units in FY 2021-22, 2,95,000 units in FY 2022-23 and 4,36,500 units in FY 2023-24 under
Long Term Incentive Plan of Vedanta Resources Limited (“VRL”).
Additionally, Mr. Navin Agarwal was paid the following amounts from VRL:
-
GBP 9,37,605 on account of vesting of VRL Cash Based Plan 2020 on 6 November 2023 upon achievement of performance parameters.
-
GBP 85,000 as commission for his services to VRL Board.
280
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STATUTORY REPORTS
FINANCIAL STATEMENTS
281
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
3. Mr. Sunil Duggal superannuated on completion of his tenure as the Whole Time Director & CEO effective close of business hours on 31 July 2023.
4. Mr. Arun Misra has been appointed as an Executive Director of the Company with effect from 01 August 2023. No remuneration was drawn
by Mr. Misra from the Company during FY 2023-24. The total remuneration paid by HZL to Mr. Misra was ` 12,71,51,286 during FY 2023-24.
As part of Vedanta Limited ESOS Scheme, he was granted 3,40,800 total stock options.
5. Sitting fees and commission paid to Mr. Dindayal Jalan by Bharat Aluminium Company Limited (“BALCO”), a subsidiary of the Company,
was ` 3,50,000 and ` 15,23,000 respectively during FY 2023-24 not included above.
6. Sitting fees and commission paid to Mr. Akhilesh Joshi by HZL was ` 9,25,000 and ` 29,92,500 respectively during FY 2023-24 not
included above.
7. Sitting fees and commission paid to Ms. Priya Agarwal Hebbar by HZL was ` 4,50,000 and ` 31,00,000 respectively during FY 2023-24 not
included above.
8. 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.
9. The performance incentive to Executive Directors is for FY 2022-23 which was paid during FY 2023-24.
10. The ESOS 2020, Cash Plan 2020 and VRL LTIP 2020 options/units vested upon completion of performance period with approval from NRC
on 06 November 2023.
The ESOS 2021, Cash Plan 2021 and VRL LTIP 2021 options/units will vest/be exercised 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 exercised after 36 months from date of grant i.e., on
01 November 2025, based on achievement of performance conditions.
The ESOS 2023, Cash Plan 2023 and VRL LTIP 2023 options/units will vest/ be exercised after 36 months from date of grant i.e., on
04 November 2026, based on achievement of performance conditions.
Board and Committee Meetings for FY 2023-24
Meeting
Q1
Apr-Jun
Q2
Jul-Sept
Q3
Oct-Dec
Q4
Jan-Mar
Total Meetings
for FY 2023-24
Board
12 May 2023
30 June 2023
07 July 2023
21 July 2023
04 August 2023
29 September 2023
24 October 2023
04 November 2023
18 December 2023
25 January 2024
21 March 2024
11
Audit & Risk Management
Committee
11 May 2023
30 June 2023
07 July 2023
21 July 2023
29 September 2023
24 October 2023
04 November 2023
02 December 2023
11 January 2024
25 January 2024
21 March 2024
11
Nomination & Remuneration
Committee
12 May 2023
21 July 2023
04 August 2023
24 October 2023
04 November 2023
21 March 2024
6
Stakeholders’ Relationship
Committee
-
-
-
25 January 2024
1
Corporate Social
Responsibility Committee
11 May 2023
-
04 November 2023
-
2
ESG Committee
-
11 September 2023
-
22 February 2024
2
Committee of Directors
13 April 2023
13 July 2023
16 August 2023
05 September 2023
21 September 2023
02 December 2023
19 December 2023
26 March 2024
8
The maximum interval between any two Board meetings did not exceed 120 days, as prescribed in the Act and Listing Regulations.
Board Committees
The Board has constituted various sub-committees with primary objective of maintaining strong business fundamentals and
delivering high performance through relentless focus on significant affairs of the Company across all its geographies. Each
committee is set up by the formal approval of the Board and is guided by its respective charter which clearly defines their
purpose, roles, and responsibilities. The Chairperson of the respective Committee briefs the Board on the summary of the
discussions held in the Committee Meetings. The minutes of all the Committee meetings are placed before the Board for its
review and noting. The CS officiates as the Secretary of these Committees.
All the Statutory Committees of the Board are chaired by Independent Directors.
Composition of Committees as on 31 March 2024
All the Committees have optimum composition pursuant to the Listing Regulations. Below is the composition of the
Committees as on 31 March 2024:
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. Dindayal Jalan
Ms. Padmini Sekhsaria
Mr. Akhilesh Joshi
Ms. Priya Agarwal Hebbar
Mr. Arun Misra
Member
Chairperson
We hereby confirm that:
•
The total managerial remuneration paid/payable in FY 2023-24 does not exceed 11% of the net profits of the Company.
•
The total remuneration received by Whole-Time Directors and Independent Directors of the Company does not exceed 10% and 1%
of the Net Profits of the Company, respectively.
•
Mr. Navin Agarwal, Executive Vice-Chairman and member of Promoter Group does not receive remuneration in excess of ` 5 crore
or 2.5% of the Net Profits of the Company, whichever is higher.
•
None of the Non-Executive Directors, have received remuneration exceeding 50% of the total annual remuneration payable to all
Non-Executive Directors.
Resolution passed by Board of Directors/Committees through Circulation
09
Board of
Directors
06
Audit & Risk
Management Committee
17
Committee
of Directors
Attendance for Board and Committee Meetings held during FY 2023-24
Attendance for Board and Committee Meetings held during FY 2023-24
Name of Director
Whether
attended
AGM on
12 July
2023
Board
Meeting
Audit & Risk
Management
Committee
Nomination &
Remuneration
Committee
Stakeholders'
Relationship
Committee
Corporate
Social
Responsibility
Committee
ESG
Committee
Committee
of
Directors
Total
Meetings
Entitled
Total
Meetings
Attended
Average
(%)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
(Attended/
Entitled)
Mr. Anil Agarwal
Yes
10/11
-
5/6
-
-
-
-
17
15
88%
Mr. Navin Agarwal
Yes
11/11
-
-
-
-
-
8/8
19
19
100%
Ms. Priya Agarwal
Hebbar
Yes
11/11
-
-
-
2/2
2/2
-
15
15
100%
Mr. UK Sinha
Yes
10/11
11/11
5/6
1/1
2/2
2/2
-
33
31
94%
Mr. Dindayal Jalan
Yes
11/11
11/11
6/6
1/1
-
-
7/8
37
36
97%
Ms. Padmini Sekhsaria
Yes
8/11
-
-
1/1
1/2
-
-
14
10
71%
Mr. Akhilesh Joshi
Yes
11/11
11/11
-
1/2
2/2
26
25
96%
Mr. Arun Misra
(Appointed as director
effective 01 August
2023)
NA
7/7
1/1
-
2/2
6/6
16
16
100%
Mr. Sunil Duggal (Ceased
to be a Director effective
close of business hours
on 31 July 2023)
Yes
4/4
-
NA
-
NA
2/2
6
6
100%
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 2023-24.
282
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
283
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Audit & Risk Management Committee
3
Members
100%
Independence
100%
Attendance
3.92
Average Tenure
11
Meetings
Akhilesh Joshi
Member
Dindayal Jalan
Member
UK Sinha
Chairperson
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 supervision
of the financial reporting; reviewing the efficacy of the risk
management systems; and maintaining robustness of
internal financial controls and risk management frameworks
including cyber security. The Committee works to fortify
the adequacy and effectiveness of the Company’s legal,
regulatory, and ethical compliance and governance programs
while monitoring the qualifications, expertise, resources,
and independence of 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 be
called as the Audit & Risk Management Committee. Parallelly,
the management team led by the Executive Director 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.
The members of the Audit & Risk Management Committee
comprise only Independent Directors to ensure the
independence in terms of financial opinions and for better
value addition. Each of the member of the Committee
brings immense experience and possess strong accounting
and financial management knowledge. In carrying out its
oversight responsibilities transparently and efficiently, the
Committee majorly relies on the expertise and knowledge
of the management, the internal auditors, the Statutory
Auditor and also uses external expertise, if required. The
management is accountable for the preparation, presentation
and integrity of the Company’s financial statements including
The Committee also meets separately with the external
auditor without members of management to seek the auditor’s
judgement about the quality and applicability of the accounting
principles, the reasonableness of significant judgement and
the adequacy of disclosures in financial statements.
On a quarterly basis, the Audit & Risk Management Committee
reviews the confirmation of independence made by the
Auditors, and also approves the fees paid to the Auditors by the
Company, or any other company in Vedanta Group as per the
Policy for Approval of Audit/Non-Audit Services to be rendered
by the Auditors.
The details and biographies of the Committee members are
set out in the Board and Committees section of the Integrated
Annual Report. The Committee fulfils the requirements
as specified under the provisions of the Act and Listing
Regulations with respect to the composition, independence,
and financial expertise of its members.
The schedule of Committee meetings held during FY 2023-24
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 2023-24
The Committee reviewed both Standalone and Consolidated
financial statements for FY 2023-24 and based on this
review and discussions with management, the Committee
was satisfied that the financial statements were prepared in
accordance with applicable accounting standards and fairly
presented the Group’s financial position and results for the
financial year ended 31 March 2024. The Committee therefore
recommended the financial statements for the financial year
ended 31 March 2024 for the consideration and approval of
the Board.
The Board accepted all the recommendations made by the
Audit & Risk Management Committee during FY 2023-24.
The utilisation of the Committee’s time along with its major
responsibilities is detailed below: -
consolidated statements, accounting, and financial reporting
principles; internal control over financial reporting; and
all procedures are designed to ensure compliance with
accounting standards, applicable laws, and regulations as
well as for objectively reviewing and evaluating the adequacy,
effectiveness, and quality of the Company’s system of
internal controls. M/s S.R. Batliboi & Co. LLP, Chartered
Accountants (FRN: 301003E/E300005), the Company’s
Statutory Auditor, is responsible for performing an
independent audit of the financial statements and expressing
an opinion on the conformity of these financial statements.
The Audit & Risk Management Committee covers a wide
range of topics for deliberations and discussions in its
meetings. These includes standing items that the Committee
considers as a matter of course, typically in relation to the
quarterly unaudited financial statements, accounting policies
and judgements and reporting matters, and an array of
significant issues relevant to Vedanta’s control framework.
The 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:
30%
10%
10%
20%
30%
Oversight of Financial
Reporting
Internal Audit and Internal
Financials Controls
Risk Management and
Cyber Security
Auditors
Governance
Audit & Risk
Management
Committee
Meeting
Invitees
The Business and
Operational Heads
are invited to the
meetings, as and
when required
The Executive Director,
CFO, Group Assurance
Head are permanent
invitees
Representatives
of Executives from
several departments
including Accounts, Finance,
Corporate Secretarial and
Internal Audit
The representatives
of Statutory
Auditors are
permanent invitees
•
Oversight of the Company’s financial reporting process
and disclosure of its financial information to ensure
that the financial statements are true, fair, sufficient
and credible;
•
Discuss and review, with the management and auditors,
the annual/quarterly financial statements before
submission to the Board;
•
Review of key significant issues, tax and legal reports
and management’s report;
•
Review of management’s analysis of significant issues
in financial reporting and judgments made in preparing
the financial statements;
•
Discuss with the Management regarding pending
technical and regulatory matters that could
affect the financial statements, and updates on
management’s plans to implement new technical or
regulatory guidelines;
•
Review of off-balance-sheet structures, if any; and
•
Review of Draft limited review/audit reports and
qualifications, if any, therein.
Oversight of Financial reporting
•
Review of the risk management framework, risk profile,
significant risks, risk matrix and resulting action plans;
•
Review of the significant audit risks with the statutory
auditor during interim review and year-end audit;
•
Oversight over the effective implementation of the risk
management framework across various businesses;
•
Assurance of appropriate measures in the organisation
to achieve prudent balance between risk and reward in
both ongoing and new business activities;
•
Annual review of the risk appetite and risk management
policy including cyber security procedures adopted in
the Group;
•
Analytic validation and recommendation of necessary
changes in the risk management policies and
frameworks to the Audit Committee/Board, if any; and
•
Evaluation of significant and critical risk exposures for
assessing management’s action to mitigate or manage
the exposures in a timely manner.
Risk Management and Cyber Security
•
Review of internal audit observations and monitoring
of implementation of any corrective actions identified;
•
Reviewing the internal financial control framework;
•
Review of the performance of the internal audit
function and internal audit plan;
•
Consideration of statutory audit findings and review of
significant issues raised;
•
Reviewing Related Party Transactions; and
•
Management discussion and analysis of financial
condition and results of operations.
Internal Audit and Internal Financial Control
284
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
285
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
•
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.
Auditors
•
Reviewing minutes, summary reports of subsidiary
companies audit committees;
•
Reviewing inter-corporate 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.
Governance
Nomination & Remuneration Committee
3
Members
67%
Independence
89%
Attendance
3.57
Average Tenure
06
Meetings
Anil Agarwal
Member
Dindayal Jalan
Member
UK Sinha
Chairperson
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 SMP; and ensure that the appropriate mix of skills,
experience, diversity, and independence is present on the
Board and senior level for it to function effectively. The
NRC also leads the process for new Board appointments,
advises the Board on succession planning arrangements
and oversees the development of management talent within
the Group.
Another key objective of the Committee is to ensure that
competitive and fair awards are linked to key deliverables
and are also aligned with market practice and shareholders’
expectations. The Committee ensures that remuneration
policies and practices are designed to attract, retain, and
motivate the Executive Directors and the senior management
group, while focusing on the delivery of the Group’s strategic
and business objectives. The Committee is also focused
on aligning the interests of the Executive Directors and
the senior management group with those of shareholders,
to build a sustainable performance culture. When setting
remuneration for the Executive Directors, the Committee
takes into account the business performance, developments
in the natural resources sector and similar information for
high-performing Indian companies considering that majority
of the Group’s operations are based in India.
The Committee also carries out the entire process of
performance evaluation on an annual basis.
As on 31 March 2024, 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 the Integrated
Annual Report. The Committee fulfils the composition
requirement as required under the provisions of the 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 2023-24 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 Committee 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 2023-24.
The utilisation of the Committee’s time along with its major
responsibilities is detailed below: -
40%
25%
20%
15%
Board Composition and
Nomination
Compensation
Evaluation of the Board,
its Committees and
Individual Directors
Succession Planning &
Governance
•
Review and recommend the structure, size and
composition (including the skills, knowledge, experience
and diversity) of the Board and its Committees;
•
Formulate the criteria/policy for appointment of
Directors, KMP and SMP (as defined by the NRC) in
accordance with identified criteria;
•
Review and appoint shortlisted candidates as Directors,
KMPs and SMPs (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
•
Formulate and recommend to the Board, the criteria
for determining qualifications, positive attributes and
independence of a Director.
Board Composition and Nomination
•
Review of succession planning for Executive and
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.
Succession Planning & Governance
•
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.
Evaluation of the Board, its Committees
and Individual Directors
•
Recommend to the Board a policy relating to the
remuneration of directors (both Executive and Non-
Executive Directors), KMP and SMP;
•
Ensuring that the level and composition of remuneration
is reasonable and sufficient to attract, retain and
motivate Directors to run the Company successfully;
•
Ensuring relationship of remuneration to performance is
clear and meets appropriate performance benchmarks;
•
Ensuring remuneration to Directors, KMP and SMP
involves a balance between fixed and incentive pay
reflecting short and long-term performance objectives
appropriate to the working of the Company and
its goals;
•
Determine remuneration based on the Company’s
financial position, trends and practices on remuneration
prevailing in the industry as considered appropriate by
the NRC; and
•
Review of the Company’s Share Based Employee
Benefit Scheme(s), if any, including overseeing the
administration of the Scheme(s), formulating the
necessary terms and conditions for such Scheme(s)
like quantum of options/rights to be granted, terms
of vesting, grant options/rights to eligible employees,
in consultation with management; and allotment
of shares/other securities when options/rights are
exercised etc. and recommend changes as may
be necessary.
Compensation
286
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
287
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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.
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.
The Company continues to focus on its long-term goal
believing that while targeting to produce maximum yield
for our shareholders during the year, we also lodge our
contributions in furthering our responsibilities towards the
society and environment. As a responsible corporate citizen,
we recognise that those who reside in our operational areas
are our partners in growth and we seek to foster a mutually
benefitting relationship with all our stakeholders. It is this
integration of business and CSR which provides us the
social licence to operate and helps us to usher in a different
developmental paradigm towards sustainable change in
society. As part of our CSR 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 the Integrated
Annual Report.
The schedule of CSR meetings held in FY 2023-24 along with
its members’ attendance records are disclosed in the earlier
section of the Corporate Governance Report.
As part of the Board’s annual evaluation of its effectiveness
and that of its Committees, as described earlier in the report,
Corporate Social Responsibility Committee (“CSR Committee”)
Stakeholders’ Relationship Committee
4
Members
4
Members
75%
Independence
75%
Independence
75%
Attendance
100%
Attendance
4.41
Average Tenure
2.28
Average Tenure
02
Meetings
01
Meeting
Priya Agarwal Hebbar
Member
UK Sinha
Member
UK Sinha
Member
Padmini Sekhsaria
Member
Padmini Sekhsaria
Member
Arun Misra
Member
Akhilesh Joshi
Chairperson
Dindayal Jalan
Chairperson
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 2023-24.
The utilisation of the Committee’s time along with its major
responsibilities is detailed below:
15%
45%
40%
CSR Policy
CSR Activities
CSR Budget
•
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 Policy
•
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 Activities
•
Review and timely resolution of the grievances of
Security holders related to issue, allotment, transfer/
transmission, dematerialisation, rematerialisation etc.
of shares and/or other securities of the Company;
•
Review and timely redressal of all the Security holders
grievances related to non-receipt of information
demanded if any, non-receipt of annual report, non-
receipt of declared dividend, issue of new/duplicate
share certificates, general meeting etc.;
•
Review from time to time, the shares and dividend that
are required to be transferred to the Investor Education
and Protection Fund ("IEPF") Authority; and
•
Review and closure of all Investor cases.
Shareholder Grievances
•
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.
CSR Budget
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 & Transfer Agent (“RTA”); monitoring of
shareholding movements etc.
Ms. Prerna Halwasiya, Company Secretary & Compliance
Officer acts as a secretary of the Committee.
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
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 2023-24.
The utilisation of the Committee’s time along with its major
responsibilities is detailed below:
40%
45%
15%
Shareholder Grievances
Enhancing Investor
Relations/shareholder
Experience/Services
Shareholding Pattern
288
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
289
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
•
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.
Enhancing Investor Relations/
Shareholder Experience/Services
•
Review shareholding distribution;
•
Review movement in shareholding pattern; and
•
Comparative details on demat and physical holding.
Shareholding Pattern
An analysis of investor queries and complaints received and
responded/addressed during the year is provided below:
Investor Complaints
Company’s RTA entertains and resolves investor grievances
in consultation with the Compliance Officer. All grievances
can be addressed either to RTA or to the Company directly.
An update on the status of complaints is quarterly reported to
the Board and is also filed with stock exchanges.
Details of Shareholders’ Complaints during FY 2023-24
S.
No.
Nature of complaints/letters
and correspondence
Received
Replied
Closing
Balance
Complaints received through Stock Exchanges, SEBI and MCA
1
Non-receipt of dividends
384
384
0
2
Non-receipt of shares
34
34
0
3
Miscellaneous
58
58
0
Letters and Correspondence
1
Letters and correspondence
from shareholders
33,664
33,664
0
TOTAL
34,140
34,140
0
Note: The Company received Nil complaints with respect to
Non‑Convertible Debentures.
Investor Grievance Redressal Management
Investor Complaints for FY 2023-24
Resolved in
time, by the
RTA
(on behalf of
the Company)
or Company
directly
Reported to Stakeholders'
Relationship Committee
Reported to Stock
Exchange(s)
Reported to
Board of Directors
•
SEBI SCORES
Platform
•
Stock Exchange(s)
•
RTA
•
Directly to Company
•
Online Dispute
Resolution ("ODR")
Platform
Requests/
Grievances
through
Investor
160
140
120
100
80
60
40
20
0
Received
Received
Received
Received
Replied
Replied
Replied
Replied
Closing
Balance
Closing
Balance
Closing
Balance
Closing
Balance
1 Non-receipt of dividend
3 Miscellaneous
2 Non-receipt of shares
Q1
Q2
Q3
Q4
Common Online Dispute Resolution Mechanism
SEBI, vide Circulars No. SEBI/HO/OIAE/OIAE_IAD-1/P/
CIR/2023/131, SEBI/HO/OIAE/OIAE_IAD-1/P/CIR/2023/135
and SEBI/HO/OIAE/OIAE_IAD-3/P/CIR/2023/191 dated
31 July 2023, 04 August 2023 and 20 December 2023
respectively, has introduced a Common ODR mechanism to
facilitate online resolution of all kinds of grievances/disputes/
complaints arising in the Indian Securities Market. Additionally,
SEBI Circular No. SEBI/HO/OIAE/IGRD/CIR/P/2023/156 dated
20 September 2023 has been issued for redressal of investor
grievances through SEBI SCORES Platform and linking it to
ODR Platform. The said ODR Portal permits the shareholder(s)
an additional mechanism to resolve the grievances/
complaints/disputes as mentioned below:
Level 1: Approach RTA or the Company
At the initial stage, all grievances/disputes/complaints are
required to be directly lodged with the RTA/the Company.
The shareholder(s) may send an email to einward.ris@
kfintech.com/comp.sect@vedanta.co.in or send the physical
correspondence addressed to M/s. KFin Technologies Limited
(Unit: Vedanta Limited), Selenium Tower B, Plot No.: 31 & 32,
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 2023-24, 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 –
Gachibowli, Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana.
Level 2: Escalate to SEBI SCORES Platform
In case the grievances/disputes/complaints are not redressed
to the satisfaction of the shareholder(s) at Level 1, then the
shareholder(s) may escalate the same on the SEBI Complaints
Redress System (“SCORES”) Platform at
https://www.scores.gov.in in accordance with the process laid
out therein.
Level 3: Initiate Dispute Resolution Process on ODR Platform
In case the grievances/disputes/complaints of the
shareholder(s) are not resolved at Level 1/Level 2, then the
ODR Process may be initiated through the ODR Portal within
the applicable timeframe under law.
Unclaimed shares and transfer of unpaid and
unclaimed amounts to IEPF
The details of Unclaimed Suspense Account and IEPF
are forming part of the Directors' Report in the Integrated
Annual Report.
particularly in the topics cited above. The Board has also
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 and
access to finance. The Board has appreciated the positive
movement that has been made in all of the important ESG
rating platforms – by not just Vedanta Limited, but also HZL
and Vedanta Aluminium.
While the Board-level Committee has been appreciative of
the decrease in fatal incidents across the Group companies,
ensuring safe working conditions across all of Vedanta’s
operations remains a priority for the ESG Committee. It has
sought regular updates on the implementation and adoption
of learnings from past incidents, assessments undertaken
as part of the Critical Risk Management program, and the
progress on infrastructural improvements to prevent injuries.
The details of Committee composition and meetings are
provided in earlier section of this report.
ESG Committee
4
Members
50%
Independence
100%
Attendance
2.72
Average Tenure
02
Meetings
Priya Agarwal Hebbar
Member
UK Sinha
Chairperson
Akhilesh Joshi
Member
Arun Misra
Member
142
17
17
142
14
14
0
0
0
0
0
0
0
0
0
83
8 13
83
8
5 11
29
5
3
0
4
4
20
21
1
127
130
10
13
32
290
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
291
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
The utilisation of the Committee’s time along with its major
responsibilities is detailed below:
50%
50%
ESG Performance
ESG Governance
Safety
•
Oversight on fatality investigations & 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 Performance
•
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.
ESG Governance
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 significant matters of the Company. The minutes of the meeting of each committee are placed before the
Board for its noting.
The Board also formulates several project specific sub-committees from time to time in order to secure speedy implementation
and execution of the projects to meet business needs. The Board is duly kept abreast of each of the meetings of sub-
committees as well.
As on 31 March 2024, the internal Board committees of the Company have been elucidated below:
Navin Agarwal
Chairperson
Arun Misra
Member
Dindayal Jalan
Member
The Committee of Directors (“COD”) supports the Board
by considering, reviewing and approving all borrowing,
investments, finance, banking and treasury related
proposals, within the overall limits approved by the Board
from time to time. The COD enables seamless flow of
procedures and assists the Board by catering to various
routine requirements.
The Committee is entrusted with the following responsibilities:
Committee of Directors
•
Review and approve all policies related to the financial
matters of the Company inter alia Investment policy,
Foreign Exchange Policy, Commodity Hedging Policy,
Banking Authorisation Policy.
Financial Matters
•
Review and approve inter-corporate loans, issuance
of Corporate Guarantees, Letter of Comfort to and on
behalf of Company/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.
Investment
•
Review, consider and approve securities related
proposals including allotment of securities,
issuance of duplicate share certificates upon split,
consolidation, renewal, remat; and
•
Consider and review the proposals for buyback of
debentures/bonds issued by the Company from
time to time.
Security related proposals
•
Nominate and appoint nominee directors on
Subsidiaries/Joint Ventures/Associate Companies;
•
Authorisation with respect to account operation
including opening and operation of bank account,
demat account etc.; and
•
Subsidiary Governance and oversight.
General Authorisation
•
Consider, review and approve all the borrowing
proposals including financing proposals within the
overall limits approved by the Board from time to time
and to create security/charge(s) on all or any of the
assets of the Company as may be required for the
purpose of the said borrowings and to do such other
incidental and ancillary activities as may be deemed
necessary for execution;
•
Assess and allocate the working capital limits to
business units; and
•
Consider, review and approve treasury related proposals
within the overall limit approved by the Board.
Treasury
The details of the meetings of COD are given in the earlier
section to this report.
Share & Debenture Transfer Committee
The Share & Debenture Transfer Committee is primarily
entrusted with the following responsibilities:
•
Allotment of shares, debentures, or any other
securities; and
•
Review and approval of transfer, transmission, deletion
and transposition of shares, debentures, or any
other securities.
The composition details of the Committee as on 31 March
2024 is provided below:
Executive Committee
The EXCO is responsible for day-to-day efficient
running of the Company and meets on a monthly
basis. It is entrusted with implementing the strategy
adopted by the Board; allocating resources in line with
delegated authorities; managing risk; and monitoring the
operational and financial performance of the Company.
Authority is delegated by the EXCO to the respective
CEOs of each of the businesses. The Group Executive
Director keeps the Board informed of the EXCO’s
activities through his standing reports placed before the
Board. The Committee:
•
Reviews operational business plans;
•
Overseas the senior management team in their
delivery of the Group’s business plans;
•
Provides oversight of all of the Group’s
operations; and
•
Ensures that prudent and robust risk management
and internal control systems are in place.
* Mr. Anupam Kumar, Dy. CFO of the Company has been
inducted as the Member of the Share & Debenture Transfer
Committee with effect from 12 May 2023.
** Mr. Jagdeep Singh ceased to be the Member of the Committee
with effect from 29 April 2024.
Share & Debenture
Transfer Committee
Dindayal
Jalan
Member
Anupam
Kumar*
Member
Jagdeep
Singh**
Member
292
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
293
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
General Body Meetings
Annual General Meetings/Court Convened Meetings
The details of the AGMs/Court Convened Meeting held during last three years through Video-Conferencing (“VC”)/Other Audio-
Visual Means (“OAVM”) are as follows:
Year
Location
Date and Time
Special Resolutions passed
Links
56th AGM
2020-21
VC/OAVM
10 August 2021 at
3:00 p.m. IST
Re-appointment of Mr. UK Sinha as an Independent
Director for the 2nd and final term of 3 years.
Notice
Outcome
Video
Chairman Speech
FAQs
Speaker Criteria
57th AGM
2021-22
VC/OAVM
10 August 2022 at
3:00 p.m. IST
Re-appointment of Mr. Akhilesh Joshi as an
Independent Director for 2nd and final term of 2 years.
Notice
Outcome
Video
Chairman Speech
FAQs
Speaker Criteria
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
58th AGM
2022-23
VC/OAVM
12 July 2023 at
3:00 p.m. IST
Amendment in Articles of Association of the
Company.
Notice
Outcome
Video
Chairman Speech
FAQs
Speaker Criteria
Transcript
Postal Ballot
The details of the Business transacted through Postal Ballot during FY 2023-24 are as follows:
Resolutions passed on 28 April 2023
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
Notice
Outcome
Resolution(s)
1. Re-appointment of Ms. Padmini Sekhsaria as Non-Executive Independent Director of the Company
for a 2nd and final term of 2 years effective from 05 February 2023 to 04 February 2025; and
2. Re-appointment of Mr. Dindayal Jalan as Non-Executive Independent Director of the Company for a
2nd and final term of 3 years effective from 01 April 2023 to 31 March 2026.
Type of Resolution(s)
Special
Mr. Upendra C. Shukla (Membership No. FCS No. 2727, CP No. 1654), Practising Company Secretary, 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.
The details of the voting results as are follows:
Description of the Resolution
Votes in favour of the resolution
Votes against the resolution
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
Re-appointment of Ms. Padmini
Sekhsaria as an Independent Director
for a 2nd and final term of 2 years
4,119
3,23,50,02,401
99.58%
365
1,35,01,155
0.42%
Re-appointment of Mr. Dindayal Jalan
as an Independent Director for a 2nd and
final term of 3 years
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.
Resolution passed on 25 August 2023
The Company had sought approval of the shareholders by way of Ordinary Resolution through notice of postal ballot dated 21
July 2023. The details of the same are as follows:
Date of Postal Ballot Notice
21 July 2023
Voting Period
27 July 2023 to 25 August 2023
Date of passing the resolution(s)
25 August 2023
Date of declaration of result
25 August 2023
Web link
Notice
Outcome
Resolution(s)
Appointment of Mr. Arun Misra (DIN: 01835605) as an Executive Director of the Company effective from
01 August 2023 to 31 May 2025.
Type of Resolution(s)
Ordinary
Mr. Upendra C. Shukla (Membership No. FCS No. 2727, CP No. 1654), Practising Company Secretary, 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.
The details of the voting results as are follows:
Description of the Resolution
Votes in favour of the resolution
Votes against the resolution
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
Appointment of Mr. Arun Misra
(DIN: 01835605) as an Executive
Director of the Company effective from
01 August 2023 to 31 May 2025
7,772
2,75,96,78,096
96.16%
895
11,02,05,178
3.84%
The resolution was duly passed by the shareholders with requisite majority on 25 August 2023.
Procedure for postal ballot: The postal ballot was duly carried out in accordance with all applicable provisions and rules framed
thereunder along with relevant circulars issued in this regard from time to time.
Proposal for Postal Ballot:
There is no immediate proposal for any resolution through postal ballot.
294
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
295
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Means of Communication
•
The quarterly/half-yearly/annual results along
with audit/limited review report, press release
and investor presentation is filed with the stock
exchanges immediately after the approval of
the Board;
•
The results are also published in at least one
prominent national and one regional newspaper
having wide circulation, within the prescribed
timelines and duly filed with the stock exchanges
as well;
•
Quarterly financial results are sent to shareholders
whose 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.
Financial Results
•
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.
News Releases
•
The schedule of analyst/investor meets are filed
with the stock exchanges and the presentations are
uploaded on the website of the Company at
www.vedantalimited.com;
•
The transcripts and audio/video recordings of post
earnings/quarterly calls/production release are
filed with the Stock Exchanges and the same are
uploaded on the website of the Company at
www.vedantalimited.com.
Institutional Investor/Analysts Presentation
•
The Company has a dedicated section on
‘Investor Relations’ on its corporate website
www.vedantalimited.com which encompasses all
the information for the investors like financial results,
policies and codes, stock exchange filings, press
releases, annual reports, past SEC Filings etc.
Website
•
In compliance with circulars issued by SEBI and MCA,
soft copies of Annual Reports were sent to those
shareholders whose email ids were registered with
the Company.
Annual Report
•
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.
Shareholder Satisfaction Survey
•
At every AGM, the Chairman addresses the
shareholders on Company’s operations and
performance with his speech;
•
Further, the Chairman’s statement addressing the
shareholders is also published in the Integrated
Annual Report of the Company.
Chairman Communique
•
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.
Access to Documents
SHAREHOLDERS
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.
SEBI through its circulars issued from time to time, has
informed that it is mandatory for holders of securities
in physical mode to update their PAN, bank mandate,
nomination, or opt out of nomination to ensure timely
responses on their grievances/requests and receipt of
dividend. Registration of email IDs will ensure faster
communication. 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.
Pursuant to SEBI Master Circular No. SEBI/HO/
MIRSD/POD-1/P/CIR/2023/70 dated 17 May 2023,
the Company has already sent/will be further sending
intimations to those Members whose shares are in
physical mode for updation of PAN, KYC and Nomination
details requesting them to update the details.
Additionally, SEBI Circular No. SEBI/HO/MIRSD/
POD-1/P/CIR/2023/181 dated 17 November 2023
has been issued for dispensing the provisions for
freezing the folios and referring the same under the
Benami Transactions (Prohibitions) Act, 1988 in case of
non‑updation of PAN, KYC and Nomination.
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 IEPF 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
Registration of nomination makes easy for dependents
to access your investments and set out the proportion of
your benefits to the 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.
The last date for submission of nomination for demat
accounts has been extended to 30 June 2024.
Conversion of Securities into Dematerialised form
Shareholders are also encouraged to open Demat
accounts to eliminates 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 only while
processing the investors’ requests for Issue of duplicate
certificate, Claim from Unclaimed Suspense Account,
Renewal/Exchange/Endorsement/Sub-division/Splitting
of certificate, Consolidation of certificates/folios,
Transmission and Transposition. Additionally, pursuant
to SEBI Circular no. SEBI/HO/MIRSD/MIRSD_RTAMB/P/
CIR/2022/70 dated 25 May 2022, the Company has duly
taken special contingency insurance policy towards the
risk arising out of the requirements relating to issuance
of duplicate securities in order to safeguard and protect
the interest of the Company.
The security holder shall submit duly filled Form ISR‑4
to the RTA for processing of service requests. The form
is available at the website of 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.
296
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
297
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Correspondence Details
All the Share
Transfer and
Dividend Payment
Requests and
Investors Related
queries, the
shareholder can
directly contact to
our Registrar and
Transfer Agent
KFin Technologies 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 - 500032
Tel: +91 40 6716 2222
Toll Free: 1800-3094-001
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
Ms. Prerna Halwasiya
Company Secretary & Compliance Officer
Vedanta Limited
Core 6, 3rd Floor, Scope Complex 7,
Lodhi Road, New Delhi - 110003
Tel: +91 11 4226 2300
Email: comp.sect@vedanta.co.in
Investor Relations
Ms. Prerna Halwasiya
Dy. Head – Investor Relations
Vedanta Limited
Core 6, 3rd Floor, Scope Complex 7,
Lodhi Road, New Delhi - 110003
Tel: +91 11 4226 2300
Email: vedantaltd.ir@vedanta.co.in
Corporate
Communications
related matters of
the Company
Ms. Ritu Jhingon
Director – Group Communications
Vedanta Limited
Emaar Capital Tower 2,
8th Floor, Mehrauli-Gurgaon Road,
Sikanderpur, Sector 26, Gurugram - 122002
Tel: +91 11 4226 2300
Email: gc@vedanta.co.in
Sustainability
Related Matters
Mr. Rajinder Ahuja
Group Head – HSE and Sustainability
Vedanta Limited
Yashad Bhawan, Udaipur - 313004,
Rajasthan, India
Tel: +91 294-6604000-02
Email: esg@vedanta.co.in
Queries related to
Debentures issued
by the Company
Debenture Trustee:
Axis Trustee Services Limited
Axis House, 2nd Floor,
Wadia International Centre,
Pandurang Budhkar Marg, Worli,
Mumbai - 400025
Tel: +91 22 2425 2525
Fax: +91 22 2425 4200
Catalyst Trusteeship Limited
Unit No-901, 9th Floor, Tower – B,
Peninsula Business Park,
Senapati Bapat Marg, Lower Parel (W),
Mumbai - 400013
Tel: +91 22 4922 0555
Fax: +91 22 4922 0505
AGM for FY 2023-24
10 July 2024; Wednesday, 3:00 p.m. IST
Date & Time
Virtual AGM with live webcast and facility to participate
through VC/OAVM 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/vedanta2024/
Virtual AGM
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.
Frequently Asked Questions ("FAQs")
Facility to submit suggestions, feedbacks or questions
online during the conduct of the meeting will be provided to
the members.
Online Chat Facility
Recorded transcript of AGM will be made available on the
website of the Company.
Transcript of AGM
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.
Online Speaker Registration
•
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.
E-Voting Facility
Financial Year
The Financial Year of Company commences from 01 April and concludes on 31 March of each year. Each quarter, the Company
reviewed and approved its financials. The previous and tentative dates for approval of the financials for FY 2023-24 and
FY 2024-25 respectively are as follows:
2024
2025
1st Quarter: 21 July 2023
2nd Quarter: 04 November 2023
3rd Quarter: 25 January 2024
4th Quarter: 25 April 2024
1st Quarter: End of July 2024
2nd Quarter: End of October 2024
3rd Quarter: End of January 2025
4th Quarter: End of April 2025
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.
With consistent dividend as a healthy sign of our sustained growth, our firm belief in percolating the benefits of our business
progress for widespread socioeconomic welfare facilitates the equitable sharing of our economic value generated. Attaining
steady operational performance and a harmonised market environment in continuation of the historical trends helped us to
reaffirm the realisation of competent numbers for FY 2023-24.
Dividend for FY 2023-24
For the period under review, the Company has declared and paid interim dividend as detailed below:
1st Interim Dividend
`18.50 per share
2nd Interim Dividend
`11.00 per share
Total Dividend
`29.50 per share
~11% dividend yield in FY 2023-24.
The complete details on date of declaration, date of payment, record date, total pay-out are detailed in the Directors’ Report
forming part of the Integrated Annual Report. The payment of the above-mentioned dividend was duly completed within the
statutory timelines.
Further, the Board has not recommended any final dividend for FY 2023-24.
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 ` 94,650 crore in last 10 years. The details of the same have been summarised below:
Dividend History
120
100
80
60
40
20
0
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
Dividend per Share (`)
4.10
3.50
19.45
21.20
18.85
3.90
9.50
45.00
101.50
29.50
298
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
299
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Capital Allocation Policy
Your Company has always strived to maintain an optimal capital allocation to
strengthen the balance sheet. The approach has always been to grow sustainably
and with financial prudence and in the line with the same, the below guiding
principles forms 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
DIVIDEND PAY-OUT LAST 10 YEARS
`94,650
crore
Capital
Expenditure
Project Capex
•
Volume augmentation, cost
reduction or creating value
added products are key guiding
principles for all projects
•
Growth projects to ensure
minimum guidelines for
IRR - 18%
Sustaining Capex
•
All sustaining capital expenditure
to be a part of Business Plan
•
Sustaining capex to be defined
and tracked in $/tonne
Dividend
•
Minimum 30% of
Attributable Profit
after tax (before
exceptional items) of
Company (excluding
profits of HZL)
•
Dividend income
received from HZL
will be pass through
within 6 months
Mergers and
Acquisitions
•
Intent to enhance
value via acquiring
accretive assets/
businesses that
have: synergies
with existing line of
core businesses
CAPITAL ALLOCATION
Key Strategic priority
Optimise
Leverage Ratio
•
Intend to
deleverage at
group level
•
Leverage ratio
at the Company
should not be
more than 1.5x
Listing Details
Particular
Scrip Code
ISIN code
Indian Stock
Exchange
BSE Limited (“BSE”)
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001
500295
INE205A01025
National Stock Exchange of India Limited (“NSE”)
Exchange Plaza, Plot No. C/1, G-Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051
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. The Company has paid annual listing fees for FY 2023-24 to all stock exchanges where the securities of the Company are listed.
3. During the year, none of the securities of the Company were suspended from trading.
4. No funds were raised through Preferential Allotment or Qualified Institutional Placement as per Regulation 32(7A) of Listing Regulations.
Stock Price Data for FY 2023-24
VEDL Share Price v/s BSE Sensex v/s BSE Metal Index
0
0
20
20
40
40
60
60
80
80
100
100
160
160
180
140
140
120
120
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Mar-24
Feb-24
VEDL Share Price
BSE Sensex
BSE Metal
VEDL Share Price v/s NIFTY 50 v/s NSE Metal Index
Apr-23
May-23
Jun-23
Jul-23
Aug-23
Sep-23
Oct-23
Nov-23
Dec-23
Jan-24
Mar-24
Feb-24
VEDL Share Price
NIFTY 50
NSE Metal
BSE: HIGH-LOW PRICE (in `)
NSE: HIGH-LOW PRICE (in `)
Mar-24
Mar-24
Feb-24
Feb-24
Jan-24
Jan-24
Dec-23
Dec-23
Nov-23
Nov-23
Oct-23
Oct-23
Sep-23
Sep-23
Aug-23
Aug-23
Jul-23
Jul-23
Jun-23
Jun-23
May-23
May-23
Apr-23
Apr-23
High Price
High Price
Low Price
Low Price
287.15
287.25
301.00
300.95
284.35
284.35
286.35
286.40
279.00
279.00
246.50
246.55
233.80
233.75
247.65
247.50
266.90
266.40
277.95
278.05
287.55
285.85
289.15
289.25
266.00
266.00
268.85
268.50
274.30
274.30
270.45
270.30
231.60
231.60
207.85
208.00
211.25
211.20
216.50
216.30
233.55
233.55
250.85
250.65
255.90
260.70
249.75
249.50
Maximise Total Shareholder's Return
VEDL share price and index values as on Monday, 03 April 2023 have been baselined to 100.
VEDL
BSE Metal
BSE AIICAP
BSE 500
Market Indices
01-Jan-20
01-Jan-21
01-Jan-22
01-Jan-23
01-Jan-24
01-Mar-20
01-Mar-21
01-Mar-22
01-Mar-23
01-Mar-24
01-May-20
01-May-21
01-May-22
01-May-23
01-Jul-20
01-Jul-21
01-Jul-22
01-Jul-23
01-Sep-20
01-Sep-21
01-Sep-22
01-Sep-23
01-Nov-20
01-Nov-21
01-Nov-22
01-Nov-23
300
250
200
150
100
50
0
VEDL share price and index values as on Wednesday, 01 January 2020 have been baselined to 100.
300
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
301
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Share Transfer System
As part of the effective shareholder management and grievance redressal processes, various shareholder requests received by
the Company through KFin Technologies Limited, the RTA, are processed in the following manner:
In addition to the above, a compliance
certificate is issued on a 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.
The 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, an arbitration can be filed with
the stock exchanges 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 CS 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
Certificates obtained in line with the statutory requirements are filed
with the Stock exchanges on a timely 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.
Communication to
Shareholder
Post Committee approval,
RTA completes the process
and communicates to the
respective shareholders;
If the documents received
are clear and found to be
in order in all respects,
then requests are generally
processed within the
statutory timelines.
Approval
The Company also
inspects and confirms
the veracity and validity
of documents;
Requests are then
approved by the duly
constituted Share &
Debenture Transfer
Committee designated
for the share
transfer procedures.
Document
Verification
The Company's
RTA verifies
the authenticity
of documents
submitted
by shareholders;
RTA thereafter
sends the requests
to the Company
for processing.
Request received
by RTA
Requests relating to
transfer, transmission,
transposition,
change of name,
deletion of name
are received from
shareholders having
physical shareholding.
EPS
(`)
Market Cap
(` crore)
19.07
68,304
FY
2019-20
FY
2018-19
FY
2018-19
-18.00
24,069
FY
2020-21
FY
2019-20
31.32
84,994
FY
2021-22
FY
2020-21
50.73
1,49,970
FY
2022-23
FY
2021-22
28.50
11.42
1,02,111 1,00,978
FY
2023-24
FY
2022-23
FY
2023-24
Shareholding Distribution
Shareholding according to shareholders class as on 31 March 2024
Shareholding of Nominal
value of Re. 1/-
No. of shareholders
% of Total shareholders
No. of shares held
Shareholding (%)
1-5000
17,73,752
99.33
31,37,85,985
8.44
5001- 10000
6,968
0.39
5,01,85,890
1.35
10001- 20000
2,837
0.16
3,98,25,157
1.07
20001- 30000
791
0.04
1,94,25,622
0.52
30001- 40000
364
0.02
1,26,73,966
0.34
40001- 50000
200
0.01
91,31,354
0.25
50001- 100000
390
0.02
2,74,28,732
0.74
100001 & Above
496
0.03
3,24,47,49,533
87.29
TOTAL
17,85,798
100.00
3,71,72,06,239
100.00
Sr. No. Category
31 March 2024
No. of shares held
Percentage of
shareholding
Face value ` 1/-
(a)
Promoter and Promoter Group
Indian promoters
1,60,656
0.00%
Foreign promoters
2,30,26,70,693
61.95%
Total (a)
2,30,28,31,349
61.95%
(b)
Public
Domestic Institutional Investors
48,87,76,711
13.15%
Foreign Institutional Investors
32,61,89,804
8.78%
Central Government/State Government(s)
26,24,891
0.07%
Associate Companies/Subsidiaries
0
-
Directors and their relatives
(excluding Independent and Nominee Directors)
1,75,877
0.00%
Key Managerial Personnel
19,957
0.00%
Relatives of promoters (other than ‘immediate relatives’ of
promoters disclosed under ‘Promoter and Promoter Group’ category)
0
-
Trusts where any person belonging to 'Promoter and Promoter Group'
category is 'trustee', 'beneficiary', or 'author of the trust'
0
-
Investor Education and Protection Fund
57,42,513
0.15%
Resident Individuals
44,01,72,943
11.84%
Non-Resident Indians (“NRI”)
1,55,32,698
0.42%
Foreign Nationals
3,109
0.00%
Foreign Companies
16,51,593
0.04%
Bodies Corporate
11,12,16,822
3.00%
Clearing Members
11,759
0.00%
HUF
1,47,78,553
0.40%
Trusts
7,08,563
0.02%
Total (b)
1,40,76,05,793
37.87%
(c)
Non-Promoter Non-Public
ESOS Trust
67,69,097
0.18%
Total (c)
67,69,097
0.18%
Grand Total (a)+(b)+(c)
3,71,72,06,239
100.00%
1. During FY 2023-24, the Promoter and Promoter Group holding has been reduced to 61.95% from 68.11%.
2. During FY 2023-24, 7,200 shares were released from abeyance category which were pending for allotment being subjudice. Thereafter,
these shares were listed on the stock exchange(s). Hence, the listed capital has increased from 3,71,71,99,039 to 3,71,72,06,239.
3. As on 31 March 2024, 2,98,632 shares are under abeyance category, pending for allotment as they are subjudice and hence, does not form
part of the listed share capital.
302
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
303
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Shareholding Distribution as on 31 March 2024
Dematerialisation of Shares and Liquidity
The shares of the Company are compulsorily traded in dematerialised form on the stock exchanges. As on 31 March 2024,
~99.84% 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.
The quarterly shareholding pattern filed with the stock exchange(s) can also be accessed on the website of the Company at
www.vedantalimited.com
Listing of Debt Securities
Non-Convertible Debentures
The following Secured Redeemable Non-Convertible Debentures (“NCDs”) are listed with the BSE as on 31 March 2024:
S.
No.
ISIN
Issuance date
Maturity date
Coupon
rate
Payment
frequency
No. of NCDs
(Face value of
` 10 lakhs each)
Amount
issued
(` in crore)
1
INE205A07196
25 February 2020
25 February 2030
9.20%
Annual
20,000
2,000
2
INE205A07212
31 December 2021
31 December 2024
7.68%
Annual
10,000
1,000
3
INE205A07220
29 June 2022
29 June 2032
8.74%
Annual
40,890
4,089
Additionally, the Company has the below Unlisted Secured Redeemable NCDs as on 31 March 2024:
S.
No.
ISIN
Issuance date
Maturity date
Payment
frequency
No. of NCDs
(Face value of ` 1 lakh each)
Amount issued
(` in crore)
1
INE205A07238
27 September 2023
27 March 2025
Quarterly
2,50,000
2,500
2
INE205A07246
21 December 2023
21 June 2025
Quarterly
3,40,000
3,400
Commercial Papers
The Commercial Papers ("CPs") issued by the Company which were listed on NSE have been duly redeemed during the year.
As on 31 March 2024, there are no outstanding CPs.
Promoter & 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
61.95%
89.02%
0.16%
10.82%
8.78%
4.33%
8.82%
12.26%
3.86%
Credit Ratings
The Company is rated by CRISIL Limited and India Ratings & Research Private Limited on its various debt instruments.
Status as on
31 March 2024
Status as on
31 March 2023
Particulars
CRISIL
India
Ratings
CRISIL
India
Ratings
CRISIL
India Ratings
Bank Loans
CRISIL AA-/
Watch with
Developing
Implications
IND A+/
Watch with
Developing
Implications
CRISIL AA/
Outlook
Negative
IND AA/
Outlook
Negative
The long-term rating has been
revised to “AA-”.
The rating action is driven by
higher-than-expected leverage,
increase in cost of borrowings and
diminishing financial flexibility.
The ratings continue to reflect the
strengths of a diversified business
risk profile, low cost position
in key businesses and strong
volume growth expected with
capital allocation towards the zinc,
aluminium and iron ore businesses.
However, the ratings remain
constrained by high leverage,
continued refinancing risk at VRL
and reduced liquidity at Vedanta.
The ratings also factor in expected
improvement in financial flexibility
of Vedanta due to the reduced
refinancing risk at VRL after it
successfully completed the liability
management exercise.
The Ratings have been put
on “Watch with Developing
Implications”. This was on account
of the announcement by Vedanta
to demerge its aluminium, oil &
gas, power, base metal and iron
& steel businesses into separate
standalone listed entities. The
Watch is expected to continue until
availability of clarity on allocation
of assets & liabilities across
entities under proposed structure
to evaluate the credit profiles of the
individual entities.
The long-term rating has been
revised to “A+”.
The rating action is driven by
higher-than-expected leverage,
expectation of impairment in
financial flexibility leading to
increase in cost of borrowings.
The ratings continue to reflect
the strengths of a profitable
aluminium segment having
structural tailwinds along
with enhanced volumes and
cost efficiencies in other
businesses. However, the
ratings remain constrained
by moderate balance sheet
leverage and expected
reduction in financial flexibility.
The Ratings have been put
on “Watch with Developing
Implications”. This was on
account of the announcement
by Vedanta to demerge its
aluminium, oil & gas, power,
base metal and iron & steel
businesses into separate
standalone listed entities. The
Watch is expected to continue
until availability of clarity on
allocation of assets & liabilities
across entities under proposed
structure to evaluate the
credit profiles of the individual
entities.
Working
Capital Lines
CRISIL AA-/
Watch with
Developing
Implications
CRISIL AA/
Outlook
Negative/
CRISIL A1+
Same as above
NA
NCDs
CRISIL AA-/
Watch with
Developing
Implications
IND A+/
Watch with
Developing
Implications
CRISIL AA/
Outlook
Negative
IND AA/
Outlook
Stable
Same as above
Same as above
CPs
CRISIL A1+
IND A1
CRISIL A1+
IND A1+
No Change
Same as above
ESG Ratings
Each year, the Company closely tracks and responds to changes in global ESG rating frameworks. These frameworks are an
independent assessment of the progress the Company is making on various ESG parameters and positive movement in each of
these can influence the Company’s access to capital.
This year, the Company witnessed a positive movement in multiple ESG ratings, indicating that the trajectory of our ESG
strategy is aligned with global stakeholder expectations.
S&P Global Corporate Sustainability Assessment: Vedanta ranked 3rd among 181 global Metal & Mining peers with a score of
80. The Company was also included in the 2024 Sustainability Yearbook.
304
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
305
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Plant Locations
Division
Location
Copper Smelter
S.F.No 1 to 7,1220 to 1225 etc., Meelavitan Village, Meelvavitan Part -1 Village, Thoothukudi Taluk,
Thoothukudi District – 628002, Tamil Nadu, India.
Continuous Copper
Wire Rod
Copper Rod Plant, S.F.No.3/2 PT, Meelvavitan Part – 1 Village, Thoothukudi Taluk, Thoothukudi District– 628002,
Tamil Nadu, India.
Captive Power Plant
Power Division, S.F.No.3/1 PART, 3/2 PART, 4/1 PART, 4/3 PART, Meelvavitan Part – 1, Thoothukudi Taluk,
Thoothukudi District – 628002, Tamil Nadu, India.
Continuous Cast
Copper Wire Rods
and Cast Bar by
product
Survey No.1/1/2 Chinchpada, Silvassa – 396230 Union Territory of Dadra and Nagar Haveli, India.
Survey No. 1/1/1/1 Chinchpada, Silvassa – 396230 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 – 410405
Maharashtra, India. **
Continuous Cast
Copper Wire Rods
209-B, Piparia Industrial Estate, Piparia, Silvassa – 396230, Union Territory of Dadra and Nagar Haveli, India.
Ratnagiri – Y 1, R 57 Zadgaon Block, MIDC, Zadgaon, Ratnagiri – 415639, Maharashtra, India **
Iron Ore – Mining
Meghalahalli Office Complex, Meghalahalli Village, Bheemasamudra – 577520, Dist. Chitradurga, Karnataka India.
Amona Beneficiation Plant – 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 – 403107, India.
Amona Jetty - Plot No. Survey No. 31, 33, 34, 35, Marcel, Amona, Bicholim, Goa - 403107, India.
Bicholim Mine - Bicholim Mineral Block I, Dhabdhaba, Bicholim, Goa - 403504, India.
Pig Iron Division I
Survey No 39, 41, 36/1(Part), 37 (Part), 42/1 (Part), 43/1 (Part), Amone, Bicholim, North Goa - 403107, 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 - 403505, India.
Sy No 192,193, Vazare, Dodamarg, Sindhudurg, Maharashtra, 416512, India.
Pig Iron Division II
Survey no.177 & 120 (part), Navelim, P. O., Navelim, Bicholim, North Goa, 403505, India.
Aluminium Smelter
PMO Office, Bhurkamunda, PO-Kali Mandir Road, Dist – Jharsuguda, Odisha - 768202, India.
Alumina Refinery
Vedanta Limited, At/PO Lanjigarh, District Kalahandi, Odisha - 766027, India.
Aluminium
Post Box No. 4, Mettur Dam R.S. - 636402, Salem District, Tamil Nadu, India.
Gat No.924, 925, 926 and 927. Sanaswadi Taluka Shirur. Dist Pune-412 208 Maharashtra, India**
Power
Thermal Power
Bhurkamunda, PO-Kali Mandir Road, Dist- Jharsuguda Odisha, Pin-768202, India.
Power Plant 1, Plot s/y No. 44/4 & 44/5, Amona Village, Navellim, Bicholim – Goa - 403107, India.
S.F.No.113,119,120,121,122,124,189,197,198, Meelvavitan Part - 1 Village, Thoothukudi Taluk,
Thoothukudi District - 628002, Tamil Nadu, India.
Oil & Gas
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
(j)
AA-ONHP-2017/4– Assam Basin – India
(k) AA-ONHP-2017/5– Assam Basin – India
(l)
AA-ONHP-2017/8– Assam Basin – India
(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
CDP Climate: B rating
(global average: C)
CDP Water: A- rating
(global average: C)
MSCI: BB
Sustainalytics: 37.9
DJSI ranking: 80
Oil & Gas
(s)
KG-OSHP-2017/1– Krishna Godavari Basin-India
(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-Gujarat Kutch Basin – India
(y)
GS-OSHP-2017/1-Gujarat Kutch Basin – India
(z)
GS-OSHP-2017/2- Gujarat 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, India, Pin 385340
(b)
Viramgam Terminal, Viramgam, Ahmedabad, Gujarat, India, Pin 382150
(c)
Bhogat Terminal, Bhogat Jam Kalyanpur Devbhumi Dwarka, Gujarat, Pin 361315
Plant
(a)
Mangala Processing Terminal, Barmer, Rajasthan
Nagana Village, Near Kawas,
NH112, Barmer - 344035, Rajasthan
(b)
Raageshwari Gas Terminal, Rajasthan
(c)
Suvali Onshore terminal, Gujarat
Survey No. 232, Suvali, Surat Hazira Road,
Surat, Pin - 394510, Gujarat
(d)
Raava Onshare terminal, Andhra Pradesh
Surasani Yanam,
Uppalaguptam Mandal, East Godavari Dist.,
Pin - 533213, Andhra Pradesh
(e)
Nagayalanka EPS Facility, Andhra Pradesh
Nagayalanka GGS, Vakkapatlavaripalem Village,
Nagayalanka Mandal, Krishna District, Pin - 521120,
Andhra Pradesh
(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 - 344001, Rajasthan, India,
(g)
Jaya Jambusar: Land Survey Nos.: 317/319/320 and 321 of village Amanpur Mota,
Jambusar Bharuch - 392180, Gujarat, India,
(h)
Hazarigaon: Hazarigaon Wellpad, Barapathar, Golaghat - 785601, Assam, India.
Paper **
GIDC Doswada, Ta. Fort Songadh, District Tapi, Gujarat, Pin code - 394365, India.
**Non-operational unit
306
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
307
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Commodity Price Risk or Foreign Exchange Risk
and Hedging Activities
Fluctuation in commodity prices
Impact: Prices and demand for the Group’s products are
expected to remain volatile/uncertain and strongly influenced
by global economic conditions. Volatility in commodity prices
and demand may adversely affect our earnings, cash flow
and reserves.
Mitigation: Our Group has a well-diversified portfolio, which
acts as a hedge against fluctuations in commodities and
delivers cash flows through the cycle. We consider exposure
to commodity price fluctuations to be an integral part of our
Group’s business and its usual policy is to sell its products at
prevailing market prices, and not to enter into long-term price
hedging arrangements. However, to minimise price risk for
finished goods where price of raw material is also determined
by same underlying base metal prices (e.g. purchase of
alumina, copper concentrate for manufacturing and selling
copper and aluminium products, respectively) we employ
back-to-back hedging. In exceptional circumstances, we
may enter into strategic hedging with prior approval of the
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 currencies may have an impact on our financials.
Although the majority of the Group’s revenue is tied to
commodity prices that are typically priced by reference to
the US dollar, a significant part of its expenses are incurred
and paid in local currency. Moreover, some of the Group
borrowings are denominated in US dollars, while a large
percentage of cash and liquid investments are held in
other currencies, mainly in the Indian rupee. Any material
fluctuations of these currencies against the US dollar could
result in lower profitability or in higher cash outflows towards
debt obligations.
Mitigation: We do not speculate in forex. We have developed
robust controls in forex management to monitor, measure
and hedge currency risk liabilities. The Committee of
Directors reviews our forex-related matters periodically and
suggests necessary courses of action as may be needed
by businesses from time to time, and within the overall
framework of our forex policy.
Exposures on foreign currency loans are managed through
the Group wide hedging policy, which is reviewed periodically
to ensure that the results from fluctuating currency exchange
rates are appropriately managed. The Group strives to
achieve asset liability offset of foreign currency exposures
and only the net position is hedged. The Group uses forward
exchange contracts, currency swaps and other derivatives to
hedge the effects of movements in exchange rates on foreign
currency denominated assets and liabilities. The sources of
foreign exchange risk are outstanding amounts payable for
imported raw materials, capital goods and other supplies
as well as financing transactions and loans denominated
in foreign currencies. The Group is also exposed to foreign
exchange risk on its net investment in foreign operations.
Most of these transactions are denominated in US dollars.
Short-term net exposures are hedged progressively based
on their maturity. A more conservative approach has been
adopted for project expenditures to avoid budget overruns,
where cost of the project is calculated taking into account the
hedge cost. However, all new long-term borrowing exposures
are being hedged. The hedge mechanisms are reviewed
periodically to ensure that the risk from fluctuating currency
exchange rates is appropriately managed.
S.
No.
Commodity
Name(1)
Exposure(2)
in ` towards
the particular
commodity
Units
Exposure(2) in
quantity towards
the particular
commodity
% of such exposure hedged
through commodity derivatives
Domestic market
International market
Total
OTC
Exchange
OTC
Exchange
1
Aluminium
35,513
kt
1,805
0%
0%
0%
64%
64%
2
Oil
8,034
Mmboe
9
0%
0%
0%
0%
0%
3
Gas
1,612
MMSCF
260
0%
0%
0%
0%
0%
4
Copper(3)
29,423
kt
413
0%
0%
0%
93%
93%
5
Silver(3)
94
Oz
4,83,743
0%
0%
95%
0%
95%
6
Gold(3)
777
Oz
46,901
0%
94%
0%
0%
94%
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 2024 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
The aforesaid details are provided in the financial
statements of the Company forming part of this Integrated
Annual Report. Please refer to Note 41 of the standalone
financial statements.
Total fees for all services on a consolidated basis to
the statutory auditors
Particulars
March 2024
(` in crore)*
Audit fees (audit and review of financial statements)
20.51
Certification and other attest services
0.23
Tax Matters
-
Others
2.78
Total
23.52
*exclusive of GST
Framework for monitoring Subsidiary
Companies
The details of the material subsidiaries of the Company
have been elucidated in the Directors’ Report forming
part of the Integrated Annual Report. The Company has
complied with the provision of Listing regulations with
respect to material subsidiary for FY 2023-24.
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 on the Company’s website at
www.vedantalimited.com.
The subsidiary companies have their separate
independent Board of Directors authorised to exercise
all the responsibilities, duties and rights for effective
monitoring and management of the subsidiaries.
The Company supervises and monitors the performance of subsidiary companies:
On a quarterly basis, the minutes of each of
the Board and Audit Committee Meetings of
the subsidiary companies and a statement of
all significant 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.
Significant Internal
Audit Observations of
the subsidiaries are
made to the Audit & Risk
Management Committee
on a quarterly basis.
Presentations are made to
the Company’s Board on
business performance by
the senior management
of major subsidiaries of
the Company.
Certain matters of the
subsidiaries relating to Financial
and Planning and Commercial
are reserved for approval of the
Board or Committee of Directors
of the Company.
Subsidiaries
are subject
to applicable
Statutory Audit and
Secretarial Audit.
Further, appropriate disclosures related to subsidiaries
are made in Financial Statements/Directors’ Report of the
Company as per the Act and Listing Regulations.
Materially Significant Related Party Transactions
A comprehensive note on material significant related party
transaction forms a part of Directors’ Report.
Your Company has in place a Policy on Related Party
Transactions, which envisages the procedure governing
Related Party Transaction(s) 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 was made
available on the Company website. The policy has been
further revised in the Board Meeting held on 21 March 2024
(effective from 01 April 2024 onwards) and can be accessed
on the Company’s website at www.vedantalimited.com.
Non-Compliance by the Company, Penalties,
Strictures imposed by Stock Exchange or SEBI or any
Statutory Authority on any matter related to capital
markets during the last three years
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 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 lakhs under Section 15HB of SEBI Act for violation of
Regulation 19(1)(a) of SEBI (Buyback) Regulations, 2003
308
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
309
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
for not completing the buyback offer in the year 2014. The
Company had filed an appeal against the said order, which
vide order dated 05 October 2023 was allowed by the
Securities Appellate Tribunal and the SEBI Order is set aside.
SEBI has filed an appeal against the said order dated 05
October 2023, before the Supreme Court on 05 December
2023 which is yet to be listed..
Vigil Mechanism/Whistle Blower Policy
Vedanta continues to assure utmost commitment towards
the highest standards of morals and ethics in the conduct of
business. The employees have been provided comprehensive
access to lodge any complaint against the Company’s
accounting practices, internal controls, auditing matters or any
such suspected incidents of fraud or violation of the Company’s
Code of Conduct that could adversely impact Company
operations, business performance and/or reputation.
All the employees of the Company and its subsidiaries are
encouraged and expected to raise their concerns. The Audit
& Risk Management Committee has laid down the procedure
governing the receipt, retention, and treatment of complaints.
Your Company has a Whistle Blower Policy in place as part
of the Vigil Mechanism which can be accessed at
www.vedantalimited.com.
All the complaints are reported to the Director – Management
Assurance, who is independent of operating management
and the businesses. In line with global practices, dedicated
email IDs (vedanta.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.
24x7 Hotline
Web Based Portal
Centralised Database
Dedicated Email IDs
Whistle
Blower
Policy
The Company hereby affirms that no personnel have
been denied access to the Chairperson of Audit & Risk
Management Committee.
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.
Disclosure of certain types of agreements binding
listed entities under Clause 5A of Paragraph A of Part
A of Schedule III of Listing Regulations
The Company ensures timely disclosure of all information
required to be disclosed as per the provisions of Listing
Regulations. The details of all subsisting agreements under
Clause 5A of Paragraph A of Part A of Schedule III of Listing
Regulations have accordingly, been made available on the
website of the Company at www.vedantalimited.com.
COMPLIANCES
Discretionary Requirements
As on 31 March 2024, the Board of the Company is
chaired by a Non-Executive Director who maintains the
Chairman’s office at the Company’s expense.
The Board
During the year under review, the Independent Auditors
have issued an unmodified opinion on the true and fair
view of the Company’s financial statements.
Unmodified opinion in Audit Report
Quarterly Financial Results are sent to the shareholders
whose 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's website.
Shareholder's Rights
This is reported by briefing the Audit & Risk
Management Committee through discussion and
presentation of the observations, review, comments
and recommendations, amongst others in the
Internal Audit presentation by the Company’s Internal
Management Assurance.
Reporting of Internal Auditor
The roles and responsibilities of the Chairman and Executive
Director have been distinctively defined and the positions are held
by separate individuals for better efficiency.
Separation of Roles of Executive
Director and Chairman
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 collective benefit of its stakeholders.
Board Diversity Policy
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
rigor and advice into all aspects of ESG.
ESG Committee
Corporate Governance requirements specified in Regulation 17 to 27 and Regulation 46 & 62 of Listing
Regulations
Your Company has complied with all the mandatory corporate governance requirements under the Listing Regulations.
Your Company, specifically, confirms compliance with corporate governance requirements in accordance with Regulation 17 to
27; 46 and 62 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, the Company maintains a separate section on the website of the
Company for necessary disclosures under the aforesaid regulations.
The disclosures under the aforesaid regulations can be accessed at www.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
Code of Business Conduct
and Ethics including Anti-
Bribery & Anti-Corruption
Policy, Whistle Blower
Policy and Anti-Trust
Guidance Notes
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 The Policy has
been revised on
04 August 2023
with immediate
effect.
Corporate Social
Responsibility 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.
www.vedantalimited.com There has been
no change in
the policy during
FY 2023-24.
Nomination &
Remuneration Policy
including the Criteria
for determining the
Independence of Directors
The policy details the guidelines on identification and appointment
of individual as a Director, KMP and SMP including the criteria
on their qualification and independence, manner and criteria for
effective evaluation of the performance. The Policy also details the
compensation principles of senior management and mechanism
for succession planning.
www.vedantalimited.com The Policy has
been revised on
04 August 2023
with immediate
effect.
Insider Trading
Prohibition Code
The Code lays down the guideline to regulate, monitor and report
trading in securities of the Company; policy & procedure for inquiry
in case of leak of Unpublished Price Sensitive Information ("UPSI");
and code of practices & procedures for fair disclosure of UPSI &
policy for determination of legitimate purpose.
www.vedantalimited.com The Policy has
been revised on
04 November
2023 with
immediate effect.
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311
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Integrated Report and Annual Accounts 2023-24
Category of Policy/Code
Brief Summary
Web link
Amendments
Dividend Distribution
Policy
The policy details guidelines for dividend distribution for equity
shareholders as per the requirements of the Listing Regulations.
www.vedantalimited.com There has been
no change in
the policy during
FY 2023-24.
Related Party
Transaction Policy
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.
www.vedantalimited.com The policy had
been previously
revised on 28
March 2023 and
effective from 01
April 2023. The
policy has been
further revised on
21 March 2024
and effective
from 01 April
2024 onwards.
Policy on Determination
of Material Subsidiaries
The policy determines the guidelines for material subsidiaries of the
Company and also provides the governance framework for such
material subsidiaries.
www.vedantalimited.com There has been
no change in
the policy during
FY 2023-24.
Policy for determination
of Materiality for Fair
Disclosure of Material
Events/Unpublished Price
Sensitive Information to
Stock Exchange(s) and
Archival Policy
The policy determines the requirements for disclosing material
events including deemed material events for the Company and
its subsidiary companies which are in nature of unpublished price
sensitive information.
The policy also lays the guidelines on archival and retention of
records of the Company.
www.vedantalimited.com The policy has
been revised
to incorporate
the SEBI
amendments
effective from
14 July 2023.
Policy on Prevention,
Prohibition and
Redressal of Sexual
Harassment at Workplace
The purpose of this policy is to create and maintain a healthy and
conducive work environment, free of discrimination. This includes
discrimination on any basis, including gender and any form of
sexual harassment.
www.vedantalimited.com There has been
no change in
the policy during
FY 2023-24.
SRC Charter
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.
www.vedantalimited.com There has been
no change in the
Charter during
FY 2023-24.
ESG Committee Charter
The Charter defines the role of the ESG Committee (erstwhile,
“Sustainability Committee”) to assist the Board in meeting its
responsibilities in relation to the ESG matters arising out of the
activities and operations of the Company and its subsidiary
companies (the Group) for aiming towards enhanced sustainable
development.
www.vedantalimited.com There has been
no change in the
Charter during
FY 2023-24.
Board Diversity Policy
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 & assisting in the development
and execution of a strategy which promotes success of Company
for the collective benefit of its stakeholders.
www.vedantalimited.com The policy has
been revised on
04 August 2023
with immediate
effect.
Diversity, Equity and
Inclusion Policy
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 and sets a vision for diversity and inclusion for
businesses across the Vedanta group.
www.vedantalimited.com The policy has
been revised on
04 August 2023
with immediate
effect.
For ease of reference of our stakeholders, all our policies and codes are available on our website in three different languages
i.e., English, Hindi and Marathi (since registered office of the Company is in Maharashtra) and can be accessed at
www.vedantalimited.com.
Awareness Sessions/Workshops on Governance practices
Vedanta as an organisation ardently supports transparency and openness in its reporting as well as in practice. Believing in zero
tolerance for unethical practices, employees and business partners across the Group are regularly sensitised about the policies
and governance practices through various multi-faceted interactive tools as elucidated below:
The Company conducted an awareness session for
the Board of Directors in collaboration with the Data
Security Council of India ("DSCI") in May 2023 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.
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.
An annual affirmation for adherence with the
Code is also obtained to reiterate commitment
and understanding.
IT Security/Cybersecurity Governance
Code of Conduct - Training Module
and annual affirmation
The Company has a robust mechanism in place to prevent
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.
Insider Trading Monitoring Portal
The employees can neither accept nor send gifts/
entertainment in exchange of any business/services/
giving off any confidential information etc. to derive any
benefit conflicting with the interest of the Company.
The Company has in place an online gift declaration
portal 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.
Online Gift Declaration Portal
We have implemented Enablon across the Group
which empowers a holistic approach to Health, Safety,
Environment, and Sustainability by providing a central
platform to manage all critical functions. Currently, all ESG-
related data are getting logged in Enablon and assurance
of the same is also conducted in this integrated software.
All incidents/UA/UC are also logged in Enablon across the
Group and this platform helps ensure timely closure of the
same by sending notifications to respective users. Multiple
reports and dashboards are configured and circulated to
help users identify areas of concern and track data closure.
During the year, we have gone live with a total of seven
modules till date and two more modules will be going
live in Q1 of FY 2024-25. Currently around 10,000 users
are mapped in the portal which includes employees and
business partners as well.
Digital Safety Module
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 issue
and sign-off on compliance certificates for their respective
businesses each quarter for placing before the Audit & Risk
Management Committee and Board.
A separate GRC vertical has beeen established for Group-
wide compliance control. Furthermore, the quarterly
compliance reporting carried out at BUs will now be
extended to Corporate as well with the implementation of
third-party compliance tool at Corporate.
Statutory Compliance System
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Integrated Report and Annual Accounts 2023-24
The Company had released its third TCFD Report on
Climate Change for FY 2022-23. The report entailed
the Group's decarbonisation strategy based upon
the guidelines issued by the Financial Stability Board.
For FY 2023-24, the Company shall be releasing a
Climate Action Report covering the aspects of TCFD
and International Financial Reporting Standard S2
framework. The report shall document Vedanta's
journey to become a Net Zero Carbon business by
2050 or sooner and shall be made available on the
Company's website. This report is in addition to the
other disclosures that the Company makes on ESG
namely GRI based Sustainability Report, BRSR, and the
Integrated Report. This is reflective of our commitment
to transparently disclose our ESG performance.
Awareness Video Clips and Mailers - With a firm
belief 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 at BUs wherein awareness and training
sessions are conducted covering governance and
internal policies such as prevention of insider trading,
POSH, antibribery, corruption, anti-trust laws etc.
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
database is only restricted with the Compliance Officer.
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.
Release of Climate Action Report
Employee Sensitisation-Ethics and Governance
UPSI Sharing Database
Innovation Portal and Cafes -
Digitalisation Initiatives
Declarations and Certifications
Declaration by
Executive Director
on Code of Business
Conduct and Ethics
Compliance
Certificate
Certificate of
Non‑Disqualification
of Directors
Auditor’s Certificate
on Corporate
Governance
A Declaration by the Executive Director of the Company, stating that the
members of the Board of Directors and SMP have affirmed compliance with
the Code of Business Conduct and Ethics of the Company is enclosed as
'Annexure I' to this Report.
The Compliance Certificate from the Executive Director and the Chief
Financial Officer of the Company pursuant to Regulation 17(8) of the Listing
Regulations is enclosed as 'Annexure II' to this Report.
A certificate from Chandrasekaran Associates, Company Secretaries,
certifying that none of the directors on the Board of the Company have been
debarred or disqualified from being appointed or continuing as directors
of companies by SEBI/MCA or any such statutory authority pursuant to
Regulation 34(3) and Clause (10)(i) of Para C of Schedule V of the Listing
Regulations is enclosed as 'Annexure III' to this Report.
The Independent Auditor’s Certificate regarding compliance with conditions
of corporate governance pursuant to the Listing Regulations is enclosed as
'Annexure IV' to this Report.
Annexure I
Declaration 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, Arun Misra, Executive Director of Vedanta Limited, hereby declare that all members
of the Board of Directors and Senior Management Personnel have affirmed compliance with the Code of Business
Conduct and Ethics of the Company for FY 2023-24.
For Vedanta Limited
Sd/-
Date: 25 April 2024
Arun Misra
Place: New Delhi
Executive Director
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315
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Annexure II
Compliance Certificate under Regulation 17(8) read with Part B of Schedule II of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015, as amended from time to time
We, Arun Misra, Executive Director (Whole-Time Director) and Ajay Goel, Chief Financial Officer of the Company,
certify that:
A.
We have reviewed financial statements and the cash flow statement for the year and that to the best of our
knowledge and belief:
(1) These statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
(2) 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.
There are, to the best of our 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.
C.
We accept responsibility for establishing and maintaining internal controls for financial reporting and we have
evaluated the effectiveness of internal control systems of the Company pertaining to financial reporting, and
we have disclosed to the auditors and the Audit and Risk Management Committee, deficiencies in the design or
operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to
rectify these deficiencies.
D.
We have indicated to the Auditors and the Audit and Risk Management Committee,
(1) significant changes in internal control over financial reporting during the year;
(2) significant changes in accounting policies during the year and that the same have been disclosed in the notes
to the financial statements; and
(3) instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having a significant role in the Company’s internal control system over
financial reporting.
Sd/-
Sd/-
Arun Misra
Ajay Goel
Executive Director (Whole-Time Director)
Chief Financial Officer
DIN: 01835605
PAN: AEAPG8383C
Date: 25 April 2024
Place: New Delhi
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 Limited and having CIN L13209MH1965PLC291394 and having registered office at 1st Floor, ‘C’ wing, Unit 103,
Corporate Avenue, Atul Projects, Chakala, Andheri (East) Mumbai, Maharashtra – 400 093 (hereinafter referred to as ‘the
Company’), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation
34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the
Company & its officers and declarations received from respective Directors, we hereby certify that as on Financial Year
ended 31 March 2024, none of the Directors on the Board of the Company as stated below have been debarred or
disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India,
Ministry of Corporate Affairs or any such other Statutory Authority:
S. No.
Name of Director
DIN
Original Date of appointment in Company
1
Navin Agarwal
00006303
17/08/2013
2
Priya Agarwal Hebbar
05162177
17/05/2017
3
Upendra Kumar Sinha
00010336
13/03/2018
4
Anil Kumar Agarwal
00010883
01/04/2020
5
Padmini Sekhsaria
00046486
05/02/2021
6
Dindayal Jalan
00006882
01/04/2021
7
Akhilesh Joshi
01920024
01/07/2021
8
Arun Misra
01835605
01/08/2023
Ensuring the eligibility of for the appointment/continuity of every Director on the Board is the responsibility of the
management of the Company. Our responsibility is to express an opinion on these based on our verification. This
certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with
which the management has conducted the affairs of the Company.
For Chandrasekaran Associates
Company Secretaries
FRN: P1988DE002500
Peer Review Certificate No.: 4186/2023
Sd/-
Dr. S. Chandrasekaran
Senior Partner
Membership No. F1644
Certificate of Practice No. 715
UDIN: F001644F000215814
Date: 24 April 2024
Place: Delhi
316
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
317
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
Annexure IV
The Members of Vedanta Limited
1st Floor, ‘C’ Wing
Unit 103, Corporate Avenue, Atul Projects
Chakala, Andheri (E), Mumbai – 400 093
1.
The Corporate Governance Report prepared by Vedanta
Limited (hereinafter the “Company”), contains details
as specified in regulations 17 to 27, clauses (b) to (i)
and (t) of sub – regulation (2) of regulation 46 and
para C, D, and E of Schedule V of the Securities and
Exchange Board of India (“SEBI”) (Listing Obligations
and Disclosure Requirements) Regulations, 2015,
as amended (“Listing Regulations”) (“Applicable
criteria”) for the year ended 31 March 2024 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 controls 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 of an opinion whether, the Company has
complied with the conditions of Corporate Governance
as specified in Listing Regulations.
5.
We conducted our examination of the Corporate
Governance Report in accordance with the Guidance
Note on Reports or Certificates for Special Purposes
and the Guidance Note on Certification of Corporate
Governance, both issued by the Institute of Chartered
Accountants of India (“ICAI”). The Guidance Note on
Reports or Certificates for Special Purposes requires
that we comply with the ethical requirements of the
Code of Ethics issued by ICAI.
6.
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.
Read and understood the information prepared
by the Company and included in its Corporate
Governance Report;
ii.
Obtained and verified that the composition of the
Board of Directors with respect to the executive
and non-executive directors has been met
throughout the reporting period;
iii.
Obtained and read the Register of Directors as on
31 March 2024 and verified that at least 1 (one)
independent woman director was on the Board of
Directors throughout the year;
iv.
Obtained and read the minutes of meetings of the
following held during the period from 01 April 2023
to 31 March 2024:
(a) Board of Directors;
(b) Audit & Risk Management Committee;
(c)
Annual General Meeting;
(d) Nomination and Remuneration Committee;
(e)
Stakeholders’ Relationship Committee;
(f)
Corporate Social Responsibility Committee;
(g) Postal Ballot;
v.
Obtained necessary declarations from the Directors
of the Company.
vi.
Obtained and read the policy adopted by the
Company for related party transactions including
amendments thereof;
vii. Obtained the schedule of related party transactions
during the year and balances at the end of the year
and 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. Performed necessary inquiries with the
management and also obtained necessary specific
representations from management.
Independent Auditor’s Report on compliance with the conditions of Corporate Governance as
per provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations and
Disclosure Requirements) Regulations, 2015, as amended
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 in performing
audit tests for the purposes of expressing an opinion
on the fairness or accuracy of any of the financial
information or the financial statements of the Company
taken as a whole.
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 as specified in Listing
Regulations, as applicable for the year ended 31 March
2024, referred to in paragraph 4 above.
Other matters and Restriction on Use
10. This report is neither an assurance as to the
future viability of the Company nor the efficiency
or effectiveness with which the management has
conducted the affairs of the Company.
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
Sd/-
per Vikas Pansari
Partner
Membership Number: 093649
UDIN: 24093649BKGPPZ4481
Place of Signature: Mumbai
Date: 25 April 2024
318
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STATUTORY REPORTS
FINANCIAL STATEMENTS
319
Report on Corporate Governance
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
BUSINESS RESPONSIBILITY &
SUSTAINABILITY REPORT
I.
Details of the listed entity.
1.
Corporate Identity Number (CIN)
of the Listed Entity
L13209MH1965PLC291394
2.
Name of the Listed Entity
Vedanta Limited
3.
Year of incorporation
1965
4.
Registered office address
1st Floor, C wing, Unit 103, Corporate Avenue Atul Projects, Chakala, Andheri (East), Mumbai,
Maharashtra – 400 093, India
5.
Corporate address
Core-6, 3rd Floor, Scope Complex 7, Lodhi Road, New Delhi - 110 003
6.
E-mail
comp.sect@vedanta.co.in
7.
Telephone
+91 22 6643 4500
8.
Website
www.vedantalimited.com
9.
Financial year for which reporting is
being done
FY 2023-24
From 01-04-2023 to 31-03-2024
10.
Name of the Stock Exchange(s)
where shares are listed
BSE Limited (BSE)
National Stock Exchange of India Limited (NSE)
11.
Paid-up capital
` 3,71,75,04,871
12.
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,
Tel: +91 294 660 4054
Email: esg@vedanta.co.in
13.
Reporting boundary
The disclosures under this report are made on a consolidated basis. Vedanta Group comprises
of Vedanta Limited, its Subsidiaries, Associates and Joint Ventures, the details of which are
given in point No. 23 of Section A of Business Responsibility and Sustainability Report (BRSR)
and on page 323 of the Integrated Report and Annual Accounts FY 2023-24. All these entities
are considered for the purpose of Financial Consolidation of the Group; however, for the
purpose of reporting data and information in BRSR, we have considered Vedanta Limited, its
10 Subsidiaries and 38 sites based on the management’s assessment of materiality, the list
of which are given as appendix to BRSR. The following categories of Entities/Sites have not
been considered for the purpose of this report:
•
Newly incorporated Entities or Entities/Sites operational for less than 12 months;
•
Non-operational/ intermittent operational Entities/Sites; and entities/sites discontinued
or outsourced.
Further, the GHG footprint, Water footprint, Energy footprint and details of the Waste
Management with respect to the following have not been considered, based on our
assessment of being immaterial to the Group’s reporting:
•
The Corporate Offices with respect to the Entities as considered under the Reporting
Boundary.
•
Guesthouses and Colonies being owned and maintained by the Group.
Furthermore, for the purpose of BRSR reporting, following methodology has been used:
•
The financial numbers used in some of the indicators of the BRSR are extracted from the
Integrated Report and Annual Accounts FY 2023-24.
•
While the financial numbers related to certain entities include inter-company consolidation
adjustments as per the applicable financial reporting framework (net figures), the non-
financial data used in some of the indicators of the BRSR related to these entities are given
without adjustments (gross figures). Further, some of the Entities/ Sites are considered for
the purpose of said financial numbers, which may have been excluded from the Reporting
Boundary.
•
Some of the Entities are considered for the purpose of preparation of the BRSR on full
consolidation method, without adjusting for minority interest in the relevant group entity,
based on operational control, as per our assessment.
•
In certain newly incorporated indicators, previous year figures have not been provided.
14.
Name of Assurance Provider
Mazars Advisory LLP
15.
Type of Assurance obtained
BRSR Core: Reasonable
BRSR (Rest of indicators): Limited
II
Products/Services
16. Details of business activities (accounting for 90% of the turnover):
S.
No.
Description of Main Activity
Description of Business Activity
% of Turnover of the entity
1.
Manufacturing
Metal and metal products
52.64%
2.
Mining and quarrying
Mining of Metal Ores
25.2 %
3.
Oil and Gas
Upstream Oil and gas Production
12.39%
17. Products/Services sold by the entity (accounting for 90% of the entity’s Turnover):
S. No.
Product/Service
NIC Code
% of total Turnover contributed
1
Aluminum Products
24202
32.66%
2
Zinc Metal
27204
14.95%
3
Copper Cathode
24201
13.45%
4
Oil
0610
10.35%
5
Steel Products
2410
4.48%
6
Silver Metals
27205
3.83%
7
Iron Ore
0710
3.76%
8
Lead Metal
27209
3.40%
9
Power
3510
3.18%
10
Gas
0620
2.01%
III. Operations
18. Number of locations where plants and/or operations/offices of the entity are situated:
Location
Number of plants
Number of offices
Total#
National
93
15
108*
International
11
13
24**
* This number does not include warehouses operated by Vedanta and its business entities
** This number includes all international entities under Vedanta Ltd.
# This number is notwithstanding the reporting boundary described in Section A-13
19. Markets served by the entity:
a.
Number of locations
Locations
Number
National (No. of States)
28
International (No. of Countries)
131*
* May include overlap of countries that may serve as a market for more than one of Vedanta’s business/products
b.
What is the contribution of exports as a percentage of the total turnover of the entity?
The contribution of exports is 35.24% of the total turnover of Vedanta Limited.
c.
A brief on types of customers
Vedanta Limited operates in the mining and manufacturing sectors, specialising in the extraction and processing of
metal ores, metal and metal products. Additionally, the company is involved in oil and gas exploration and production,
as well as power generation and sales. Vedanta’s product portfolio includes a range of minerals and metals such as
aluminium, copper, iron ore, zinc, silver, and lead. The company’s primary customers include industrial consumers in
sectors such as automotive, steel, power generation, infrastructure, battery manufacturing and oil.
SECTION A: GENERAL DISCLOSURES
320
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
321
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
IV. Employees
20. Details as at the end of Financial Year:
a.
Employees and workers (including differently abled):
S. No.
Particulars
Total
(A)
Male
Female
Other
No. (B)
% (B/A)
No. (C)
% (C/A)
No. (D)
%(D/A)
EMPLOYEES
1.
Permanent (D)
12,766
10,170
80%
2,596
20%
2.
Other than
Permanent (E)
279
198
71%
81
29%
3.
Total employees (D + E)
13,045
10,368
79%
2,677
21%
WORKERS
4.
Permanent (F)
4,760
4,555
96%
205
4%
5.
Other than Permanent (G)
79,210
76,828
97%
2,346
3%
36
0.05%
6.
Total workers (F + G)
83,970
81,383
97%
2,551
3%
36
0.04%
b.
Differently abled Employees and workers:
S.
No.
Particulars
Total
(A)
Male
Female
No. (B)
% (B/A)
No. (C)
% (C/A)
DIFFERENTLY ABLED EMPLOYEES
1.
Permanent (D)
10
7
70%
3
30%
2.
Other than Permanent (E)
1
0
0%
1
100%
3.
Total differently abled
employees (D + E)
11
7
64%
4
36%
DIFFERENTLY ABLED WORKERS
4.
Permanent (F)
9
9
100%
0
0%
5.
Other than permanent (G)
19
19
100%
0
0%
6.
Total differently abled
workers (F + G)
28
28
100%
0
0%
21. Participation/Inclusion/Representation of women
Total (A)
Number and percentage of Females
No. (B)
% (B/A)
Board of Directors
8
2
25%
Key Management Personnel
4*
1
25%
* The definition of Key Managerial Personnel (KMP) is as per the Section 2(51) of Companies Act,2013.The term Key Managerial
Personnel (KMP) mentioned above includes two members of the Board of Directors.
22. Turnover rate for permanent employees and workers
FY 2024*
FY 2023**
FY 2022**
Male
Female
Total
Male
Female
Total
Male
Female
Total
Permanent Employees
14%
17%
14%
11%
15%
12%
15%
22%
16%
Permanent Workers***
7%
8%
7%
-
-
-
-
-
-
Note: Turnover rate is calculated as per Full Time Equivalents (FTEs) (includes both Permanent Employees and Permanent Workers)
* For FY 2023-24, permanent employee headcount is the average of the headcount as on 1 April 2023 and 31 March 2024
** FY 2022-23 and FY 2021-22 the permanent employee headcount is the number of employees as on 31 March of the respective
financial years.
*** Turnover Rate for Permanent Workers was not monitored in FY 2022-23 and FY 2021-22, hence not reported.
V. Holding, Subsidiary and Associate Companies (including joint ventures)
23. (a) Names of holding / subsidiary / associate companies / joint ventures*
As on 31 March 2024, the Company had 49 subsidiaries, 6 Associates/Joint Venture entities. Please see the table
below for further details.
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.
Vedanta Incorporated (formerly known as
Volcan Investments Limited)
Ultimate Holding
Company
61.95%
Yes
2.
Thalanga Copper Mines Pty Limited (TCM)
Subsidiary
100%
Yes
3.
Bharat Aluminium Company Limited
("BALCO")
Subsidiary
51%
Yes
4.
Desai Cement Company Private Limited
Subsidiary
100%
Yes
5.
ESL Steels Limited
Subsidiary
95%
Yes
6.
Ferro Alloy Corporation Limited ("FACOR")
Subsidiary
100%
Yes
7.
Hindustan Zinc Alloys Private Limited
Subsidiary
100%
Yes
8.
Hindustan Zinc fertilisers private Limited
Subsidiary
100%
No
9.
Hindustan Zinc Limited ("HZL")
Subsidiary
65%
Yes
10.
MALCO Energy Limited ("MEL")
Subsidiary
100%
Yes
11.
Sesa Mining Corporation Limited
Subsidiary
100%
Yes
12.
Sesa Iron and Steel Limited
Subsidiary
100%
Yes
13.
Sesa Resources Limited ("SRL")
Subsidiary
100%
Yes
14.
Talwandi Sabo Power Limited ("TSPL")
Subsidiary
100%
Yes
15.
Vedanta Zinc Football and Sports
Foundation
Subsidiary
100%
Yes
16.
Vedanta Aluminium Metal Limited
Subsidiary
100%
Yes
17.
Vizag General Cargo Berth Private Limited
Subsidiary
100%
Yes
18.
Zinc India Foundation
Subsidiary
100%
Yes
19.
AvanStrate Inc. (''ASI'')
Subsidiary
51.63%
Yes
20.
Cairn India Holdings Limited
Subsidiary
100%
Yes
21.
Western Cluster Limited
Subsidiary
100%
Yes
22.
Bloom Fountain Limited
Subsidiary
100%
Yes
23.
Amica Guesthouse (Proprietary) Limited
Subsidiary
100%
Yes
24.
Namzinc (Proprietary) Limited
Subsidiary
100%
Yes
25.
Skorpion Mining Company (Proprietary)
Limited (NZ)
Subsidiary
100%
Yes
26.
Skorpion Zinc (Proprietary) Limited (SZPL)
Subsidiary
100%
Yes
27.
THL Zinc Namibia Holdings (Proprietary)
Limited (“VNHL”)
Subsidiary
100%
Yes
28.
THL Zinc Ltd
Subsidiary
100%
Yes
29.
Killoran Lisheen Mining Limited
Subsidiary
100%
Yes
30.
Lisheen Milling Limited
Subsidiary
100%
Yes
31.
Lisheen Mine Partnership
Subsidiary
100%
Yes
32.
Vedanta Lisheen Mining Limited
Subsidiary
100%
Yes
33.
Cairn Energy Hydrocarbons Limited
Subsidiary
100%
Yes
34.
Black Mountain Mining (Proprietary) Limited Subsidiary
74%
Yes
35.
Cairn Lanka Private Limited**
Subsidiary
100%
No
36.
AvanStrate Korea Inc
Subsidiary
100%
Yes
322
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
323
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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)
37.
Gaurav Overseas Private Limited
Associate/ Joint Venture
50%
No
38.
Madanpur South Coal Company Limited
Associate/ Joint Venture
18%
No
39.
Goa Maritime Private Limited
Associate/ Joint Venture
50%
No
40.
Rosh Pinah Health Care (Proprietary)
Limited
Associate/ Joint Venture
69%
No
41.
Gergarub Exploration and Mining (Pty)
Limited
Associate/ Joint Venture
51%
No
42.
Roshskor Township (Pty) Limited
Associate/ Joint Venture
50%
No
43.
Meenakshi Energy Limited
Subsidiary
100%
Yes
44.
Hindmetal Exploration Services Private
Limited
Subsidiary
100%
No
45.
Vedanta Base Metals Limited
Subsidiary
100%
No
46.
Vedanta Displays Limited
Subsidiary
100%
No
47.
Vedanta Iron and Steel Limited
Subsidiary
100%
No
48.
Vedanta Semiconductors Private Limited
Subsidiary
100%
No
49.
THL Zinc Ventures Ltd
Subsidiary
100%
Yes
50.
Vedanta Copper International VCI Company
Limited
Subsidiary
100%
No
51.
Monte Cello BV (“MCBV”)
Subsidiary
100%
No
52.
THL Zinc Holding BV
Subsidiary
100%
No
53.
Fujairah Gold FZC
Subsidiary
100%
Yes
54.
Vedanta ESOS Trust
Subsidiary
100%
No
55.
Vedanta Lisheen Holdings Limited
Subsidiary
100%
No
56.
AvanStrate Taiwan Inc
Subsidiary
100%
No
* This number includes all entities under Vedanta Limited, notwithstanding the reporting boundary described in Section A-13
** This entity is in in liquidation process
VI. CSR Details
24. (i)
Whether CSR is applicable as per section 135 of Companies Act, 2013:
Yes.
(ii)
Particulars
Standalone
Consolidated
Turnover (` in crore)
70, 757
1,43,727
Net worth (` in crore)
65,536
42,069
VII. Transparency and Disclosures Compliances
25. 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)
FY 2024
FY 2023
(If yes, then provide
web-link for grievance
redressal policy)
Number of
complaints
filed during
the year
Number of
complaints
pending
resolution at
close of the year
Remarks
Number of
complaints
filed during
the year
Number of
complaints
pending
resolution at
close of the year
Remarks
Communities Yes
Grievance Mechanism:
https://www.vedantalimited.
com/Media/VSFDocuments/
Technical%20Standard%20
V-one/TS%204_
Grievance%20Mechanisms.
pdf
https://www.vedantalimited.
com/Media/VSFDocuments/
Social%20Performace%20
Standards/Social%20
Performance%20
Standard%20-%20
Grievance%20Mechanism.
pdf
246
9
-
24
13
-
Investors
(other than
shareholders)
Yes
https://www.vedantalimited.
com/eng/investor-relations-
contact.php
0
0
-
-
-
-
Shareholders Yes
Contact Us | Queries,
Concerns and Inquiries
or Feedback - Vedanta
(vedantalimited.com)
476
0
-
387*
0
-
Employees
and workers
Yes
Code of Business Conduct
and Ethics:
https://www.vedantalimited.
com/CorporateGovernance/
Code%20of%20
Business%20Conduct%20
and%20Ethics.pdf
1,229
60
-
407
60
-
Customers
Yes
https://vedantametalbazaar.
moglix.com/#/login
300
21
-
94
-
-
Value Chain
Partners
Yes
https://www.vedantalimited.
com/Media/VSFDocuments/
Technical%20Standard%20
V-one/TS%204_
Grievance%20Mechanisms.
pdf
759
46
-
Data not consolidated at Group Level
Other (please
specify)
Nil
*This number is restated from last year
324
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
325
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
S.
No
Material issue
identified
Indicate
whether risk
or opportunity
(R/O)
Rationale for identifying the risk/ opportunity
In case of risk, approach to adapt or mitigate
Financial implications of
the risk or opportunity
(Indicate positive or negative
implications)
1
Climate Change
and
Decarbonisation
Risk and
Opportunity
Risk:
Vedanta’s operations are likely to be affected by rising regulatory
changes and investor demands aimed at limiting or reducing
GHG emissions. This will lead to higher costs for fossil fuels,
penalties for emissions exceeding permitted limits and increased
administrative costs for compliance monitoring and reporting.
For instance, the Carbon Border Adjustment Mechanism will be
applicable to our Aluminium as well as Iron and Steel business.
The Company would need to potentially pay additional taxes for
imports into countries implementing CBAM. Also, CBAM could
increase the Company’s risk exposure due to decreased market
access.
Opportunity:
Vedanta recognises that transition towards a low carbon
economy has resulted in increased demand for low/ zero carbon
metals. Vedanta can leverage its expertise and resources to
tap into these opportunities while at the same time reducing its
carbon footprint.
Vedanta’s strategies for mitigating these risks include:
• Being a Net Zero carbon business by 2050. Our climate targets
are aligned with SBTi’s 2-degree scenario.
• GHG emissions intensity of our metal businesses by 20% by
FY 2024-25 from a FY 2020-21 baseline.
• Track long-term tier 1 suppliers’ GHG reduction strategies.
• Implement decarbonisation projects to offset emissions from
growth pProjects.
• Launch/Develop low carbon products.
• Vedanta plans to dDevelop a Scope 3 emissions reduction
roadmap in FY 2024-25.
Negative and Positive
2
Workplace Health
and Safety
Risk
Risk:
Neglecting the health and safety of Vedanta’s employees
can have significant consequences for the Company. Injuries
or illnesses due to unsafe working conditions can result in
decreased productivity and efficiency, as affected employees are
unable to perform their duties.
Additionally, workforce morale can be severely impacted by a
lack of focus on health and safety.
Failing to prioritise health and safety can also lead to increased
litigation costs, as accidents or injuries may result in lawsuits
seeking compensation for damages, medical expenses, and
loss of income. Repeated safety violations or, in extreme cases,
fatalities can trigger stringent consequence management for
management teams.
Furthermore, regulatory bodies, industry watchdogs, and
stakeholders may impose penalties, fines, or legal action against
the Company.
The Company has taken some of the following measures to ensure
a safe and healthy workplace:
• Implementation of Critical Risk Management (CRM) Program
across Vedanta sites to identify the root causes of accidents and
implementing systemic corrections.
• Improving safety infrastructure by deploying engineering
solutions.
• Regular employee and tier 1 supplier training and senior
leadership sessions to reinforce the importance of working safely
and stopping work in case of any unsafe situation on the ground.
• External audit and certifications such as ISO 4500:2018.
Negative
26. Overview of the entity’s material responsible business conduct issues
Please indicate material responsible business conduct and sustainability issues pertaining to environmental and
social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach
to adapt or mitigate the risk along-with its financial implications, as per the following format
Vedanta reviewed its material topics in FY 2023-24 as part of its annual process. In FY 2022-23, Vedanta Limited
undertook a detailed evaluation to identify sustainability/ESG issues that are of material importance to execute its
business strategy and growth plan. Furthermore, three of our businesses - namely Vedanta Aluminium, Cairn India
and Hindustan Zinc Limited conducted independent assessments of ESG topics impacting their businesses.
The overall assessment approach played a crucial role in appraising the risks and opportunities that Vedanta and its
businesses may face as well as in refining our ESG strategy. The comprehensive assessment attempted to follow the
principles of double materiality, which involved assessing the impact of Vedanta’s operations on stakeholders (impact
materiality), as well as, in some cases, evaluating the reciprocal impact of society and the environment on Vedanta
(financial materiality).
The assessment procedure involved the following steps:
1.
Identification of an initial list of material topics: By considering leading standards such as International Council
for Metals and Mining (ICMM) and Sustainability Accounting Standards Board (SASB), as well as analysing peer
company priorities, a total of 26 material topics were identified.
2.
Stakeholder consultations and impact assessment: The topics were prioritised after assessing the intensity
of impact on a wide spectrum of stakeholders (both internal and external). This was done by consulting 1,933
stakeholders using multiple engagement channels such as interviews, focus group discussions, surveys, and
site visits.
3.
Risk and opportunity assessment: An in-depth analysis of identified material topics was conducted to
determine the potential impact of these topics on our ability to execute the 'Transforming for Good' strategy
with a specific focus on topics that could have significant financial implications. Topics were then assessed
against the risk threshold as defined in Vedanta's Enterprise Risk Management matrix. The assessment
allowed us to evaluate the level of risk associated with each topic and inform the development of appropriate
mitigation strategies.
4.
Prioritising material topics: A scoring methodology was employed to evaluate the severity and likelihood of
each issue using the inputs from stakeholders as well as risk assessment. Based on this analysis, the material issues
were classified as high, medium, and low priority.
5.
Preparation of the materiality matrix: Matrix was prepared by deploying two axes to evaluate the material
issues, with the X-axis depicting the impact on Vedanta’s business, and the Y-axis depicting impact on
stakeholders. The issue with highest significance for both stakeholders and business were identified as Top
material topics. This classification allows for focussed attention and tailored strategies to address the identified
material issues effectively.
6.
Finalisation of the materiality matrix: In the validation phase, the results of the materiality assessment
underwent a thorough review by Vedanta's senior management team and was signed off by the ESG ManCom
chaired by the Executive Director. This critical step ensured the relevance, accuracy and completeness of the
materiality matrix.
326
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
327
Business Responsibility &
Sustainability Report
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Integrated Report and Annual Accounts 2023-24
S.
No.
Material issue
identified
Indicate
whether risk
or opportunity
(R/O)
Rationale for identifying the risk/ opportunity
In case of risk, approach to adapt or mitigate
Financial implications of
the risk or opportunity
(Indicate positive or
negative implications)
3
Water
Management
Risk and
Opportunity
Risk:
With many of Vedanta’s operations in both water-stressed areas and
areas prone to flooding, change in water availability is a material risk for
businesses such as BALCO, Hindustan Zinc Ltd., and Cairn Oil & Gas.
Additionally, there could be water-related stakeholder conflicts.
The impacts are as follows:
a) Decrease in the capacity utilisation of operation resulting in
productivity losses.
b) Legal conflicts resulting in loss of credibility and reputation of the
Company.
c) Higher financial burdens and increase in water costs.
• Water stewardship initiative to reduce freshwater withdrawal and
maximise both reuse and recycle of water.
• A zero-discharge philosophy.
• Site-specific roadmaps to achieve water positivity.
• Technology deployment across our sites for process improvement
and recycling of wastewater.
• Integrated Watershed Management Initiatives (IWMI) such as
rainwater harvesting and groundwater recharging projects for
communities to improve freshwater availability.
Negative and
Positive
4
Community
Engagement
and
development
Risk and
opportunity
Risk:
Not involving community members in decision-making processes,
can create conflicts with the community leading to delays in project
implementations. The conflict may lead to stoppage of work at the site,
leading to production and revenue loss.
Opportunity:
Maintaining a harmonious relationship with the communities in which
the Company operates is crucial for obtaining and retaining the social
licence to operate.
It helps create a positive outlook towards the expansion of the business,
and facilitates the growth of the local economy by providing direct and
indirect employment opportunities
• Social Performance Manager (SPM), at each site to drive the
implementation of social performance principles.
• A robust grievance mechanism for effective resolution of social
incidents.
• Regular Community group meetings and village council meetings
to understand expectations and manage perceptions.
• Community development programs at each site location to build
confidence in the communities and ensure inclusive development.
Negative and
Positive
5
Air Emissions
& Management
Risk
Risk:
Air quality management and emissions control pose significant
challenges affecting environment and stakeholders, necessitating
stringent oversight and consistent monitoring.
Failure to comply could incur fines, penalties, and legal repercussions,
disrupting regular operations. Hence, stringent air emissions
management is imperative due to the significant operational and
reputational risks involved.
• Real-time monitoring of suspended particulate matter, sulfur
oxides (SOx), and nitrogen oxides (NOx) as integral components
of our ambient air quality monitoring protocol.
• Installation of Control Devices to reduce harmful effects of air
emissions arising from processing of metals.
• Dust suppression activities at our mining operations.
This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards
adopting the NGRBC Principles and Core Elements.
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
P3
P4
P5
P6
P7
P8
P9
Policy and management processes
1. a. Whether
your
entity’s
policy/
policies
cover each
principle
and its core
elements
of the
NGRBCs.
(Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
b. Has the
policy been
approved by
the Board?
(Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
c. Web Link of
the Policies, if
available
Code of Business
Conduct and
Ethics
Supplier Code of
Conduct
Code of Practice
and Fair Disclosure
of unpublished
sensitive
information:
Dividend
Distribution Policy:
Policy for
determining
material
subsidiaries:
Nomination and
Remuneration
Policy:
Policy on Board
Diversity:
Familiarisation
Program for
Independent
Directors:
Policy on Risk
Management:
Environmental
Policy:
Supplier
Sustainability
Management
Policy
Climate Change
Policy:
Information
Security Policy:
Social
Performance
Policy:
Supplier and
Business Partner
Sustainability
Management
Policy
Climate Change
Policy:
Social
Performance
Policy:
Human Rights
Policy:
Anti-harassment
Policy:
POSH Policy:
Diversity and
Inclusion Policy:
Diversity and
Inclusion Policy:
Remuneration
Policy:
Anti Harrassment
and Anti-
Discrimination:
Social
Performance
Policy:
POSH Policy:
Supplier
Sustainability
Management
Policy:
Grievance
Redressal
Mechanism:
Social
Performance
Policy:
Environmental
Policy:
Human Rights
Policy:
Social
Performance
Policy:
Anti
Harrassment
and Anti-
Discrimination:
POSH Policy:
Environmental
Policy:
Energy and climate
Change Policy:
Biodiversity Policy:
Tailing
Management
Policy:
Supplier Code of
Conduct:
Code of
Business
Conduct and
Ethics:
Social
Performance
Policy:
Corporate
Social
::Responsibility
Polic
Code of Conduct
Information Security
Policy
SECTION B: MANAGEMENT AND PROCESS DISCLOSURES
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P1
P2
P3
P4
P5
P6
P7
P8
P9
2. Whether the entity has
translated the policy into
procedures. (Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
3. Do the enlisted policies
extend to your value chain
partners? (Yes/No)
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
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.
• ISO
9001:2015,
• ISO 31000
(Risk
Management
System)
• ISO 37301
(Compliance
Management
• ISO
14001:2015,
• Aluminium
Stewardship
Initiative
(Jharsuguda),
• ISO 9001
(Quality
Management
System)
• SA8000:2014,
• ISO
45001:2018,
• ISO 22301
(Business
Continuity
Management
System and
Disaster
Recovery
System)
• SA8000:2014,
• Aluminium
Stewardship
Initiative
(Jharsuguda).
• SA8000:2014,
• Aluminium
Stewardship
Initiative
(Jharsuguda).
• ISO
14001:2015,
• ISO
50001:2018,
• TCFD,
• SBTi,
• TNFD
• Aluminium
Stewardship
Initiative
(Jharsuguda).
• ISO 9001:2015
• SA8000:2014,
• Aluminium
Stewardship
Initiative
(Jharsuguda)
• ISO
9001:2015,
• ISO
27001:2002
5. Specific commitments, goals
and targets set by the entity
with defined timelines, if any.
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: Keep community welfare as the guiding principle for our business decisions
Aim 2: Empower 2.5 million individuals with enhanced skillsets
Aim 3: Uplift 100 million women and children via social welfare interventions
Transforming Planet
Aim 4: Net Zero Carbon by 2050 or sooner
Aim 5: Achieving net water positivity by 2030
Aim 6: Enhance our business model by incorporating innovative green practices
Transforming the Workplace
Aim 7: Prioritise the safety and health of our workforce
Aim 8: Promote gender parity, diversity and inclusivity
Aim 9: Align with global standards of corporate governance
For further details related to sustainability Strategy and ESG pillars, please refer to Page 94, Integrated
Annual Report FY 2023-24.
6. Performance of the entity
against the specific
commitments, goals, and
targets along-with reasons
in case the same are
not met.
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 2023-24’s
performance on the set goals, refer to the ESG Scorecard on Page 100, Integrated Annual Report FY 2023‑24.
Governance, leadership, and oversight
7. Statement by director responsible for the business responsibility report, highlighting ESG related challenges, targets, and achievements.
(listed entity has flexibility regarding the placement of this disclosure)
Please refer to the Chairman’s, and Group Executive Director’s (ED) statement on Page 24 and Page 28 respectively of the Integrated
Annual Report FY 2023-24.
8. Details of the highest
authority responsible
for implementation and
oversight of the Business
Responsibility policy (ies).
The Board level ESG Committee is the highest authority responsible for the oversight of the implementation of
Business Responsibility policies.
The Executive Director (ED) of the Group, as a member of the Board level ESG Committee and as the
chairperson of the Group HSES-Executive Committee (where ESG topics are also discussed) is responsible for
the implementation and oversight of the Business Responsibility policy(ies).
9. Does the entity have a
specified Committee of the
Board/ Director responsible
for decision making on
sustainability related
issues? (Yes / No). If yes,
provide details
Yes, the Board of Vedanta Limited has constituted various Board committees, which are responsible for and
have a remit over key sustainability related policies of Vedanta, as below:
ESG Committee
The Board-level ESG Committee governs and reviews all sustainability and ESG matters of the Company.
Together with our Corporate Sustainability and ESG function, it is responsible for implementing, promoting,
and monitoring initiatives under our ‘'Transforming for Good’' agenda. As per the Terms of Reference of the
ESG Committee, the Board appoints the Members of the Committee and the Chair of the Committee who is a
Non‐Executive Director. The Group HSE & Sustainability Head and ESG Director are permanent invitees to the
Committee Meetings. The ESG Committee shall have a minimum of three members including one Independent
Non‐Executive Director of the Company. Other members of the Committee may be appointed on the
recommendation of the Executive Director with the approval of the Board. The composition of the Committee
can be accessed at https://www.vedantalimited.com/eng/investor-relations-corporate-governance.php
P1
P2
P3
P4
P5
P6
P7
P8
P9
Corporate Social Responsibility Committee
The Corporate Social Responsibility Committee of the Board governs and reviews the Corporate Social
Responsibility activities of the Company. The CSR Committee recommends the annual business plan for
Vedanta's Corporate Social Responsibility initiatives to the Board for its approval. The plan includes resource
requirements and allocation across business. The CSR Committee also reviews and updates Board on the
performance of the Company against such Annual Business Plan. The composition of the Committee can be
accessed at https://www.vedantalimited.com/eng/investor-relations-corporate-governance.php.
Audit and Risk Management Committee
The Audit & Risk Management Committee of the Board oversees monitoring and providing effective supervision
of the financial reporting; reviewing the efficacy of the risk management systems; and maintaining robustness
of internal financial controls and risk management frameworks including cyber security. The Committee is
responsible fulfilling its oversight responsibilities regarding management of key risks, including strategic,
financial, operational, sectoral, sustainability (Environment, Social and Governance) related risks, information
and cyber security, and compliance risks. 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, and independence of both the internal and external auditors; and assessing
the auditors’ performance and effectiveness each year. The composition of the Committee can be accessed at
https://www.vedantalimited.com/eng/investor-relations-corporate-governance.php.
Stakeholders Relationship Committee
The Stakeholders’ Relationship Committee (SRC) cohesively supports 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 composition of the Committee can be accessed at https://www.vedantalimited.com/eng/investor-
relations-corporate-governance.php
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)
P1
P2
P3
P4
P5
P6
P7
P8
P9
P1
P2
P3
P4
P5
P6
P7
P8
P9
Performance against above
policies and follow up action
Committee of the Board
The policies of the Company are reviewed
annually by director /board committees, wherever
applicable.
Compliance with statutory
requirements of relevance to the
principles, and rectification of
any non-compliances
P1
P2
P3
P4
P5
P6
P7
P8
P9
Yes. The Committees of the Board review compliance with all relevant statutory requirements quarterly, while
the Internal Executive Committee (Exco) and functional teams review the compliance status monthly.
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.
P1
P2
P3
P4
P5
P6
P7
P8
P9
Yes. Vedanta undertakes an annual audit exercise, known as the Vedanta Sustainability Assurance Process
audit, conducted by an external agency Det Norske Veritas (DNV) to evaluate the workings of these policies. This
audit is conducted across all business locations to ensure Vedanta Sustainability Framework (VSF) compliance.
The Vedanta Sustainability Assurance Programme (VSAP) outcomes are specifically tracked by the Board-level
ESG Committee that reports to the Group Executive Committee, which, in turn, reports to the Board.
12. If answer to question
(1) above is “No” i.e.
not all Principles are
covered by a policy,
reasons to be stated
Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
The entity does not consider the principles
material to its business (Yes/No)
NA
NA
NA
NA
NA
NA
NA
NA
NA
The entity is not at a stage where it is able
to formulate and implement the policies on
specified principles (Yes/No)
NA
NA
NA
NA
NA
NA
NA
NA
NA
The entity does not have the financial or/
human and technical resources available
for the task (Yes/No)
NA
NA
NA
NA
NA
NA
NA
NA
NA
It is planned to be done in the next financial
year (Yes/No)
NA
NA
NA
NA
NA
NA
NA
NA
NA
Any other reason (please specify)
NA
NA
NA
NA
NA
NA
NA
NA
NA
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Integrated Report and Annual Accounts 2023-24
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
indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be
voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally, and
ethically responsible.
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*
7
Business Ethics and Code of Conduct covering Insider Trading,
Information Security, Sexual Harassment Prohibition at Workplace and
other Governance aspects etc.
25%
Completed training on Cybersecurity/Data Governance in collaboration
with Data Security Council of India (DSCI).
75%
Legal and Regulatory Compliance
50%
Risk Management Framework
50%
Engagement of directors in ESG and sustainability matters through
Board-level ESG Committee meetings, in turn, ensuring participation in
overall oversight and transformation initiatives.
62.5%
Risk Management Framework and Legal and Regulatory Compliance
50%
Engagement of directors in ESG and sustainability matters through
Board-level ESG Committee meetings, in turn, ensuring participation in
overall oversight and transformation initiatives.
62.5%
Key
Managerial
Personnel*
7
Business Ethics and Code of Conduct covering Insider Trading,
Information Security, Sexual Harassment Prohibition at Workplace and
other Governance aspects etc.
75%
Completed in-house training on Sustainability topics.
75%
Legal and Regulatory Compliance
75%
Risk Management Framework
75%
Engagement of KMPs in ESG and sustainability matters through Board-
level ESG Committee meetings, in turn, ensuring participation in overall
oversight and transformation initiatives.
50%
Risk Management Framework and Legal and Regulatory Compliance
75%
Engagement of KMPs in ESG and sustainability matters through Board-
level ESG Committee meetings, in turn, ensuring participation in overall
oversight and transformation initiatives.
75%
Essential Indicators
PRINCIPLE 1
Businesses should conduct and govern
themselves with integrity, and in a manner
that is Ethical, Transparent, and Accountable.
UN SDG mapped:
SECTION C: PRINCIPLE WISE PERFORMANCE DISCLOSURE
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
Employees
other than
BoD and
KMPs
3,504
The following topics were covered under the training are:
1. Code of conduct
2. Business ethics: Anti-Trust, Anti-Bribery, Insider Trading and
Communication
3. Health and Safety: Basics of Electrical safety and Electrical Hazard
Identification, Behavioural Based Safety, Industrial and safety laws,
Ergonomics
4. Waste management: E- Waste Management (Rules and EPR, Solid
waste management and Battery Waste Management
5. Human rights: Labour laws, POSH
6. Social performance and Stakeholder Engagement
7. ISO 45001:2018 Internal Auditor
8. Climate Change: Carbon and Climate Change, Energy Management
System
9. Cybersecurity
68%
Workers
7,920
The following topics were covered during the training:
1. Code of conduct and Business Ethics
2. Waste Management
3. Occupational health and Safety
65%
* Board of Directors and Key Managerial Personnels include only Vedanta Ltd.
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:
Monetary
NGRBC
Principle
Name of the
regulatory/
enforcement agencies/
judicial institutions
Amount
(In `)
Brief of the Case
Has an
appeal been
preferred?
(Yes/No)
Penalty/
Fine 1
Principle 7 The Deputy Director
of Mines (DDM),
Baripada Mining
Circle, Baripada,
Department of Steel &
Mines, Government of
Odisha
2,79,361
FACOR: There was discrepancy between the stock found at site
and the stock mentioned in books, basis which compounding fee
was levied by DDM Baripada Circle for an amount of ` 2,79,361.
No
Penalty/
Fine 2
Principle 1 Director Mines and
Geology, Goa
15,00,000 Sesa Goa (SRL): Director Mines & Geology, Goa passed an
order earlier wherein Sesa Resources Limited, wholly owned
subsidiary of Vedanta Limited, was held liable for Illegal Laterite
Mining because we were the owners of the property over which
illegal mining was carried out by unknown individuals. DMG
imposed a total penalty of ` 1.25 crore on SRL. We preferred a
revision application before Mines Secretary. The Mines Secretary
passed an order dated 08/09/2023 wherein it was stated that
SRL cannot be held liable under Rule 63(3) since the penalty was
levied by DMG on presumption of guilt only. We were directed to
pay ` 15,00,000 (Fifteen Lakhs). Mines Secretary on merits held
us not liable for illegal mining.
No*
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Monetary
NGRBC
Principle
Name of the
regulatory/
enforcement agencies/
judicial institutions
Amount
(In `)
Brief of the Case
Has an
appeal been
preferred?
(Yes/No)
Penalty/
Fine 3
Principle 1 CESTAT, Delhi
10,000
BALCO: BALCO has received favourable order from Hon’ble
CESTAT, Delhi setting aside service tax demand of ` 9,45,494,
applicable interest and penalty of ` 15,69,569 under relevant
provisions of Finance Act, 1994.
The penalty amounting to ` 10,000 imposed vide Commissioner
(A) order due to procedural lapses is reaffirmed by CESTAT, Delhi.
The matter in consideration pertains to demand of service tax on
account of payment made to foreign service provider which has
been set aside by Hon’ble CESTAT, Delhi.
No
Penalty/
Fine 4
Principle 1 BSE Limited and
National Stock
Exchange of India
Limited
23,600
Vedanta Limited: Deviation under Regulation 29 of SEBI Listing
Regulations pertaining to delay in furnishing prior intimation
of the meeting of Board of Directors for the quarter ended
30 September 2023.
No
Penalty/
Fine 5
Principle 1 BSE Limited and
National Stock
Exchange of India
Limited
19,87,200 Hindustan Zinc Limited: Non-compliance related to minimum
numbers of Independent Directors on Board
No
Penalty/
Fine 6
Principle 1 Office of The Assistant
Commissioner,
Uttar Pradesh
21,72,808 Cairn Oil & Gas: The Company in respect of an Oil & Gas block
where it is an operator has received an Order from Office of
The Assistant Commissioner, Sector 1 Basti, Uttar Pradesh
(‘Tax Authority’), confirming demand of GST Penalty related to
Detenton of Goods and Conveyance with respect to tendered tax
invoice unsigned and mismatch between tax invoice date and
E-way bill date. The said demand pertains to FY 2023-24 and
has been issued pursuant to stock transfer.
Demand issued: GST Penalty of ` 21,72,808 (The Company’s
share of demand, based on participating interest of 70%, is
` 15,20,966).
No**
Penalty/
Fine 7
Principle 1 Office of State tax
officer, Rudrapur,
Uttarakhand
8,82,588
Hindustan Zinc Limited: The Company has received an Order
from State Tax officer, Rudrapur, Uttarakhand, confirming the
below demand on account of procedural issues. The demand
pertains to the period 2023-24:
Demand issued: Penalty of ` 8,82,588/-
No
Note: In accordance with the prescribed format of this report, the details of remittances for only those fines and penalties have been
reported above which have been disclosed to the stock exchanges under Regulation 30 of SEBI Listing Regulations and made available on
the Company website also.
* No appeal was filed as the original demand was ` 1.25 crore and based on our intervention, the Mines Secretary closed the matter.
** The Company shall file appeal before the Appellate Authority within the time-limit prescribed under the GST Law.
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.
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 is committed to conducting business with responsibility and integrity. We have developed and implemented a
robust policy on business conduct i.e., the Code of Business Conduct and Ethics (COBCE). The code covers aspects related
to anti-bribery, anti-corruption, confidentiality, conflict of interest, anti-trust, insider trading, and whistle-blower policy.
Link: https:/www.vedantalimited.com/uploads/corporate-governance/policies_practices/Supplier-Code-of-Conduct.pdf
In addition, Vedanta’s strict anti-bribery and anti-corruption policy (ABAC policy) is part of the Code of Business Conduct
and Ethics (Page 21). The company does not tolerate any kind of bribery or corruption and has internal controls in place to
prevent it from happening. The Company has a zero-tolerance for acts of bribery and corruption.
The ABAC policy follows all applicable anti-corruption laws that Vedanta is subject to which includes Prevention of
Corruption Act, 1988 (India), UK Bribery Act, 2010 and U.S. Foreign Corrupt Practices Act, 1977.
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/Insider-Trading-Prohibition-Code-Nov-4,23.pdf
•
Anti-trust Guidance notes: https://www.vedantalimited.com/CorporateGovernance/antitrust_guidance_notes-vedanta.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)
The COBCE has a vigilance mechanism for reporting complaints from both internal and external stakeholders, along with
a specified process for receiving and resolving these complaints; further details are available on page 22 of the COBCE.
As an integral aspect of Vedanta’s comprehensive approach, regular training sessions are conducted for 100% of our
employees on combating corruption and bribery, as part of the Code of Conduct training. Additionally, members of the
Board of Directors are obligated to affirm their compliance with the Code of Conduct as part of their agreement with
the Company.
5.
Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement
agency for the charges of bribery/ corruption:
FY 2024
Current
Financial Year
FY 2023
Previous
Financial Year
Directors
0
0
KMPs
0
0
Employees
0
0
Workers
0
0
6.
Details of complaints with regard to conflict of interest:
FY 2024 (Current Financial Year)
FY 2023 (Previous Financial Year)
Number
Remarks
Number
Remarks
Number of complaints received in relation to
issues of Conflict of Interest of the Directors
0
No complaints
received
0
No complaints
received
Number of complaints received in relation to
issues of Conflict of Interest of the KMPs
0
No complaints
received
0
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.
Not applicable.
8.
Number of days of accounts payables ((Accounts payable *365) / Cost of goods/services procured) in the following format:
FY 2024
(Current Financial Year)
FY 2023
(Previous Financial Year)
Number of days of accounts payables
37
35
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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.
Current
Financial Year
Previous Financial
Year
Details of improvements in environmental and social impact
R&D
95.06% of total Vedanta’s
R&D investment was
spent on improving
environmental
performance:
a) HZL: ` 11,83,27,000
b) Cairn Oil & Gas:
` 31,78,000
c) Vedanta Aluminium-
Jharsuguda:
` 61,51,495
Vedanta’s R&D
investment
on improving
environmental
performance was
spent at:
a) HZL:
` 11,84,25,000
b) Value-Added
Business (VAB):
` 13,05,000
c) Vedanta
Aluminum:
` 67,00,000
•
HZL: The company’s Research and Development (R&D) focusses on advancing
its circular manufacturing objectives, notably through the creation of innovative
flotation reagents that enhance mineral recovery and minimise impurities.
Additionally, their commitment to environmental stewardship is demonstrated
by numerous waste recycling initiatives aimed at diminishing their ecological
footprint and reclaiming valuable resources from waste. Furthermore, R&D has
been instrumental in refining the processes within Wealz kiln operations, thereby
optimising metal recovery from secondary materials. HZL received patents for
advancements in both pyrometallurgy and hydrometallurgy, aiming to elevate
zinc and lead yields through proprietary in-house developments. To bolster
research capabilities, HZL’s facilities are equipped with advanced instruments,
including X-Ray Fluorescence (XRF), X-Ray Diffraction (XRD), and a suite of other
specialised equipment.
•
Cairn Oil & Gas: The company undertook a project to eliminate the requirement
for Post Weld Heat Treatment (PWHT) for weld joints exposed to 25,000 ppm
alkaline solutions. This work was undertaken in collaboration with IIT-Kharagpur.
•
Vedanta Aluminium-Jharsuguda: The company has conducted R&D to improve
smelter efficiencies, recovery rates, and align the business with requirements of
the Aluminium Stewardship Initiative.
CAPEX** 3.64% of the total
CAPEX spent for
improving environmental
performance and 0.18%
the total CAPEX spent
for improving social
performance:
a) Cairn Oil & Gas:
` 74,17,71,028
b) HZL: ` 4,63,73,00,000
c) Vedanta Aluminium
– Jharsuguda(Social
Performance):
` 2,10,43,05,267
d) Iron Ore business (IOB):
` 7,67,12,703
e) Vedanta Aluminium-
Lanjigarh(Social
Performance):
` 16,25,12,308
Vedanta’s CAPEX
spent on improving
environmental
performance was
spent at:
a) HZL:
~` 6,55,00,00,000
•
Cairn Oil & Gas: Construction of pipeline to transport hydrocarbons from Raag
Oil-1 to RDG (replacing heavy vehicles), and installation of steam motors led to
energy savings.
•
HZL: Some of the key projects covering under Capex investment are
o
Establishment of zero liquid discharge plants at Zawar mine and
Rampura Agucha mine
o
Setting up dry tailing storage facility at Rajpura Dariba Complex
o
Development of [PS1] seismic monitoring system at mines
o
Fire detection system for UG and surface conveyors at units etc.
•
Vedanta Aluminium - Jharsuguda: In order to enhance its social license to
operate and on request from members of the local community, the company
undertook activities such as the construction of a temple, and the donation of
an ultrasound machine to the local healthcare facility.
•
VAB: To reduce graphite emissions, the company installed a new baghouse at
Blast Furnace 1 (BF1)
•
Vedanta Aluminium – Lanjigarh: Wind defenders were installed at the Bauxite
Residue Disposal Area to suppress the spread of red mud due to wind erosion.
Essential Indicators
PRINCIPLE 2
Businesses should provide goods
and services in a manner that is
sustainable and safe
UN SDG mapped:
9.
Open-ness of business- Provide details of concentration of purchases and sales with trading houses, dealers, and
related parties along-with loans and advances & investments, with related parties, in the following format:
Parameter
Metrics
FY 2024
(Current
Financial Year)
FY 2023
(Previous
Financial Year)
Concentration of
Purchases*
a. Purchases from trading houses as % of total purchases
5.64%
Data not collected
b. Number of trading houses where purchases are made from**
226
Data not collected
c. Purchases from top 10 trading houses as % of total purchases from
trading houses
3.84%
Data not collected
Concentration of
Sales
a. Sales to dealers/distributors as % of total sales
39.34%
Data not collected
b. Number of dealers/distributors to whom sales are made**
576
Data not collected
c. Sales to top 10 dealers/ distributors as % of total sales to dealers/
distributors
15.90%
Data not collected
Share of RPTs in
a. Purchases (Purchases with related parties / Total Purchases)
1.20%
Data not collected
b. Sales (Sales with related parties / Total Sales)
1.26%
Data not collected
c. Loans & advances (Loans & advances given to related parties / Total
loans & advances)
99.91%
Data not collected
d. Investments (Investments in related parties / Total Investments made)#
6.71%
Data not collected
* Purchases do not include provisions.
** Number may include duplicate trading houses, dealers, and distributors as the consolidation represents activity from all of our
businesses
# For loans and advances and Investments, closing balances disclosed in the audited consolidated financial statements for the year
ended 31 March 2024 have been considered.
Leadership Indicators
1.
Awareness programmes conducted for value chain partners on any of the principles during the financial year:
Total number
of awareness
programmes held
Topics/principles covered under the training
%age of value chain partners covered (by
value of business done with such partners)
under the awareness programmes
715*
Basics of BRSR, Code of Conduct, Safety, Green Procurement
guidelines, Modern Slavery Act, Environment, Social, Health,
Safety, and Governance, Climate Change, and Human Rights
16.58%
*Only Tier 1 suppliers are included.
2.
Does the entity have processes in place to avoid/ manage conflict of interests involving members of the Board? (Yes/
No) If Yes, provide details of the same.
Yes, the company has in place a well-defined process with respect to the disclosure of interest and associated matters
in accordance with the guidelines prescribed by the Companies Act, 2013 and SEBI Listing Regulations. Each Director/
KMP/SMP promptly reports any actual or potential conflicts to the Board, which are noted and deliberated upon during
subsequent Board meetings. The Board evaluates and approves actions regarding potential or actual conflicts as deemed
appropriate. Directors facing conflicts abstain from participating in discussions or voting on pertinent governance
issues. Furthermore, the Company's Code of Business Conduct and Ethics provides comprehensive directives to address
instances of conflict of interests. An annual affirmation from the Board of Directors for complying with the provisions also
forms a part of the Integrated Annual Report.
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2.
a.
Does the entity have procedures in place for sustainable sourcing? (Yes/No)
Yes, Vedanta’s Supplier Sustainability Management Policy’ and ‘Suppliers’ Code of Conduct’ (SCOC) align with its
sustainable sourcing commitment.
The Supplier Code of Conduct (SCOC) serves as the guiding principle for all of Vedanta’s engagements with suppliers
and is a mandatory adherence for all suppliers and vendors. The SCOC is comprehensive; it addresses various areas,
including anti-corruption, human rights, health, safety, environment, climate change, and sustainability. To uphold
human rights laws and practices and ensure relevant legislations are being complied throughout Vedanta’s supply
chain, the Supplier and Contractor Sustainability Management Policy has been established. Critical suppliers need
to declare their commitment to compliance with the Modern Slavery Act. This approach further helps to prioritise
Vedanta’s risk management measures for its suppliers. We also engage a third-party to conduct a risk assessment
of their suppliers on various aspects, including regulatory compliance and compliance with the Modern Slavery
Act (MSA). Training is provided for the Company’s buyers and/or internal stakeholders on their roles in the supplier
ESG programme.
b.
If yes, what percentage of inputs were sourced sustainably?
In FY 2023-24, 81% of the inputs were sourced sustainably from tier 1 suppliers.
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.
Our Waste to Wealth philosophy pivots around our focus on minimising waste to landfill and integrating greater circularity
into our production processes. Aligned with our ESG vision, we are working towards becoming a Zero Waste organisation,
and several initiatives are underway to completely utilise mineral and non-mineral waste. As a part of Vedanta
Sustainability Governance, we have developed ‘Technical Standard– Resource Use and Waste Management’, supporting
our Environmental Policy, and applicable to entire operation lifecycle of all businesses. The standard has been developed in
line with the Basel Convention, International Council on Mining and Metals (ICMM) and IFC Performance Standards with an
objective to follow principles of waste hierarchy i.e., avoid, reduce, reuse, recycle, treat, and dispose across all operations.
Vedanta is committed to design and operate in an efficient manner to minimise resource consumption and to identify and
implement all feasible opportunities to reduce waste generation.
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 certified third parties. HZL, BALCO and, TSPL follow a strict ban on ‘No Single-Use Plastic.’ TSPL and Cairn
have received Single-Use-Plastic-Free certification from the Confederation of Indian Industry (CII). As a part of
the certification process, CII does verification, under the provisions of the Plastics-use Protocol: Verification and
Certification (1.0).
b)
E-waste: Not Material to Vedanta’s operation. All the e-waste is disposed through certified third-party agencies as per
E-waste management and handling rules.
c)
Hazardous waste: The Company has identified several hazardous wastes as per the Basel convention and the
Hazardous and other Wastes (Management and Transboundary Movement) Rules, 2016, generated at different
stages of operations. These include: used/spent oil, waste refractories, spent pot lining, residual sludge from
smelters, etc. The hazardous wastes undergo several end-of-life treatment processes, such as internal reprocessing,
co-processing at cement plants, processing by registered recyclers, and handling at registered Treatment, Storage,
Disposal Facilities (TSDF).
d)
Other waste: Non-hazardous wastes include fly-ash (from captive and merchant power plants), red mud (aluminium
refinery waste), jarofix (from zinc smelting), slag, lime grit (process residues from smelters and aluminium refineries)
and phosphor gypsum (phosphoric acid plant). These non-hazardous wastes are termed High-Volume-Low-Toxicity
(HVLT) wastes. HVLT wastes are stored in tailings dams/ash-dykes or other secure landfill structures before being
sent to other industries as raw materials – thereby recycling the waste stream. Other non-hazardous wastes are sent
for recycling, disposed, or incinerated.
For example:
•
The use of Jarosite, a common ore processing waste, is being extended to multiple applications with the help of
in-house technologies. In FY 2023-24, close to 35% of the jarosite generated was used for various purposes like
constructing roads and creating enhanced use in cement industries.
•
We have initiated an R&D project to explore the utilisation of red mud, a waste material produced during the
processing of bauxite into alumina. This project aims to find innovative ways to repurpose and make productive use
of red mud, further consolidating our circularity initiatives. In FY 2023-24 we were able to utilise 4.5% of red mud
we produced.
•
Composter used for biodegradable waste and converted manure is used for horticulture purpose.
Further, the standard defines procedures for on-site waste handling and storage, waste treatment and disposal, waste
transfer and off-site treatment and disposal. Specific clauses have been described for safe handling of hazardous wastes
such as display of MSDS and warning signs, authorised access only and providing emergency contact information and
wash facility.
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.
EPR applies to certain Business Units within our organisation, such as HZL, BALCO, Cairn, VAL-Jharsuguda, MEL Nickel,
and ESL Steel Limited. Each of these Business Units have a waste collection plan in place that aligns with EPR guidelines.
For example, BALCO implemented a ban on single-use plastic within its plant premises and collaborates with a third-party
recycler to collect plastic waste generated within the township. This recycler then channels the plastics to the cement
industry, certifying BALCO as a 100% plastic recycling company. At HZL, EPR only applies to plastic received as packaging
material for imported goods. These materials are unwrapped in stores and subsequently sent for further recycling,
with a waste collection plan that complies with the Extended Producer Responsibility plan submitted to the Pollution
Control Board.
Leadership Indicators
1.
Has the entity conducted Life Cycle Perspective / Assessments (LCA) for any of its products (for manufacturing
industry) or for its services (for service industry)? If yes, provide details in the following format?
Yes, Vedanta has conducted LCA for Zinc, Lead, Silver, as well as aluminium products such as primary foundry alloys, flip
coil, wire rods, pig iron, ingots and billets.
NIC
Code
Name of
Product/
Service
%of total
Turnover
contributed
Boundary for which the
Life Cycle Perspective/
Assessment was
conducted
Whether
conducted by
independent
external agency
Results communicated in public domain
(Yes/No) If yes, provide the web-link.
27204
Zinc
13%
Cradle-to-grave
Yes
Yes
https://api.environdec.com/api/v1/EPDLibrary/
Files/2e5fdc61-b98c-42b9-90d0-08db0d9b78e5/
Data
27205
Silver
4%
Cradle to Grave
Yes
Yes
hzlindia.com/wp-content/uploads/HZL_SDR-
2017-18-new.pdf (page 81-82).
27209
Lead
3%
Cradle to Grave
Yes
Yes
hzlindia.com/wp-content/uploads/HZL_SDR-
2017-18-new.pdf (page 81-82).
24202
Aluminum
Ingots
5%
Cradle to Gate
Yes
No
24202
Aluminum
Rods
3%
Cradle to Gate
Yes
No
24202
Aluminum Rod
Products
1%
Cradle to Gate
Yes
No
27130
Pig Iron
1%
Cradle to gate
Yes
No
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2.
If there are any significant social or environmental concerns and/or risks arising from production or disposal of your
products / services, as identified in the Life Cycle Perspective / Assessments (LCA) or through any other means, briefly
describe the same along-with action taken to mitigate the same.
Name of Product/
Service
Description of the
risk/concern
Action Taken
Zinc
No risk
Although there is no risk identified as arising from production or disposal of our product
in the Life Cycle Assessments (LCA).
Following are the recommendations from the above study for which HZL has worked on:
•
Identifying all potential areas for improvement and direct efforts to reduce the impact,
or otherwise minimise as far as possible, getting the consequent environmental
improvement and compare with the benchmark and best available technologies
•
Optimisation and improvement of the production processes, end-of-life scenarios,
etc.
•
Stimulating the generation of information on the life cycle performance of materials
to support both reductions in the footprint of the upstream activities to harvest the
materials, as well as more sustainable applications of materials in products
•
Objectively analysing different future scenarios and possible alternatives and their
implications and impact on the life cycle
•
Third party standards and rating schemes that are trying to improve the
environmental footprint of product and building systems
Silver
No risk
Lead
No risk
Primary Foundry Alloys
No risk
N.A.
Flip Coil
No risk
N.A.
Wire Rods
No risk
N.A.
Pig Iron
No risk
N.A.
Ingots
No risk
N.A.
Billets
No risk
N.A.
3.
Percentage of recycled or reused input material to total material (by value) used in production (for manufacturing
industry) or providing services (for service industry).
Indicate input material
Recycled or re-used input material to total material
FY 2024
Current Financial Year
FY 2023
Previous Financial Year
NIL
NIL
NIL
4.
Of the products and packaging reclaimed at end of life of products, amount (in metric tonnes) reused, recycled, and
safely disposed, as per the following format:
FY 2024
Current Financial Year
FY 2023
Previous Financial Year
Re-used
(MT)
Recycled
(MT)
Safely
disposed (MT)
Re-used*
(MT)
Recycled
(MT)
Safely
disposed (MT)
Plastics (including packaging)
NA
NA
E-waste
Hazardous waste
Other waste***
5.
Reclaimed products and their packaging materials (as percentage of products sold) for each product category.
Indicate product category
Reclaimed products and their packaging materials as % of total
products sold in respective category
-
1.
Essential Indicators
a.
Details of measures for the well-being of employees
Category
% of employees covered by
Total
(A)
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)
Permanent employees
Male
10,170
10,170
100%
10,170
100%
NA
NA
10,170
100%
8,697
86%
Female
2,596
2,596
100%
2,596
100%
2,596
100%
NA
NA
2,423
93%
Total
12,766
12,766
100%
12,766
100%
2,596
100%*
10,170
100%**
11,120
87%
Other than Permanent employees
Male
198
98
49%
109
55%
NA
NA
109
55%
7
4%
Female
81
7
9%
11
14%
11
14%
NA
NA
1
1%
Total
279
105
38%
120
43%
11
4%
109
39%
8
3%
* Employees covered under maternity benefits is disclosed as % of only female Employees and not total Employees.
** Employees covered under paternity benefits is disclosed as % of only male Employees and not total Employees.
b.
Details of measures for the well-being of workers:
Category
% of workers covered by
Total
(A)
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)
Permanent workers
Male
4,555
4,555
100%
4,555
100%
NA
NA
4,407
97%
3,917
86%
Female
205
205
100%
205
100%
201
98%
NA
NA
74
36%
Total
4,760
4,760
100%
4,760
100%
201
4%
4,407
93%
3,991
84%
Other than Permanent workers
Male
76,828
37,780
49%
48,234
63%
NA
NA
27,833
36%
40,391
53%
Female
2,382
652
27.37%
912
38%
837
35%
NA
NA
922
39%
Total
79,210
38,432
49%
49,146
62%
837
1.1%
27,833
35%
41,313
52%
c.
Spending on measures towards well-being of employees and workers (including permanent and other than permanent)
in the following format:
FY 2024
Current Financial Year
FY 2023
Previous Financial Year
Cost incurred on well-being measures as a % of total revenue of the company*
0.07%
Data not collected
*Cost incurred for other than permanent workers have not been considered due to non-availability of information.
PRINCIPLE 3
Businesses should respect and promote
the well-being of all employees, including
those in their value chains.
UN SDG mapped:
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2.
Details of retirement benefits, for Current FY and Previous Financial Year.
Benefits
FY 2024
FY 2023
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.)
PF
96%
100%
Y
99%
100%
Y
Gratuity
100%
100%
Y
100%
100%
Y
ESI*
100%
100%
Y
100%
100% **
Y
Others – please specify
-
-
-
-
-
-
* ESI percentage is calculated based on the number of employees who are eligible for the benefit
** These numbers were incorrectly reported at 99% in FY 2022-23 BRSR report
3.
Accessibility of workplaces
Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements
of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in
this regard.
As per Vedanta's human rights policy and diversity inclusion policy, we prioritise safeguarding the rights of individuals
with disabilities (PwDs). We provide dedicated support and accommodations for our specially-abled employees to excel in
most of our workplaces. Our commitment extends to empowering employees with disabilities, fostering an inclusive work
environment, and maximising their potential.
We achieve this by creating a work environment that fosters inclusion and maximises their potential. This includes:
•
Individualised Support: We provide workplace modifications, assistive technologies, and tailored training programs to
ensure everyone feels comfortable and can perform at their best.
•
Accessible Infrastructure: Most of our corporate offices and plants have infrastructures for aligned with Disabilities
Act, 2016.
– Hindustan Zinc Limited provides ramps, elevators with braille inscribed, touch less entry systems for disabled
persons, text to speech conversion software's, wheelchair accessibility.
– BALCO and Vedanta Aluminium have special entry and exit points.
– Vedanta Aluminium, Vedanta Zinc International, Talawandi Sabo Power Plant are designed to provide wheelchairs,
ramps, accessible restrooms, special gates, and bathrooms.
– Most of our businesses have designed ramps and wheelchairs in their offices to supports persons with disabilities.
•
Inclusive Culture: We actively promote disability awareness and sensitivity among our staff. This fosters a respectful
and supportive work environment where everyone feels valued. Hindustan Zinc provides training for its employees on
Indian sign language.
Moving forward, the Company is developing a roadmap aligned with the guidelines and Space Standards for Barrier-Free
environments for individuals with disabilities. This initiative aims to establish uniform inclusive infrastructure across all
our sites and offices, guaranteeing equal accessibility for all. Through such efforts, we are actively integrating the hiring of
specially-abled employees into our business.
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.
At Vedanta, prioritising the fundamental rights of our employees is central to our business ethos. We understand the
significance of cultivating a workplace that embraces diverse cultures, communities, and perspectives, valuing the
contributions of every individual.
We strive to uphold all labour rights and are aligned with national and international regulations, including Rights of
Persons with Disabilities Act 2016. Vedanta’s Code of Business Conduct and Ethics (COBCE) and Diversity and Inclusion
Policy prohibit any discrimination on the grounds of disability, gender and identity. Any recruitment, career development
opportunity, training, etc. would be solely based on performance and merit. COBE covers Vedanta’s commitment to provide
equal opportunity to all.
It is formulated with the objectives to safeguard:
a)
Enforce zero tolerance for discrimination: All employees are expected to respect one another, with any form of
discrimination against differently abled individuals strictly prohibited.
b)
Ensure equal opportunities: We guarantee that differently abled individuals have equitable access to recruitment,
career advancement, performance evaluations, training opportunities, and more.
c)
Prioritise accessibility: Across most of Vedanta's Business Units, we ensure that premises and facilities are accessible
to persons with disabilities. This involves making reasonable accommodations and modifications to physical
infrastructure to ensure inclusivity.
The COBCE can be found here: https://www.vedantalimited.com/uploads/corporate-governance/policies_practices/Code-
of-Business-Conduct-and-Ethics-Eng.pdf
5.
Return to work and Retention rates of permanent employees and workers that took parental leave.
Permanent employees
Permanent workers*
Gender
Return to work rate
Retention rate
Return to work rate
Retention rate
Male
100%
89%
100%
93%
Female
97%
91%
100%
88%
Total
99.5%
89.25%
100%
92.26%
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 (If yes, then give details of the mechanism in brief)
Permanent Workers
Yes. At Vedanta, we believe in open communication. We encourage employees to voice their concerns
directly to their manager, HR, or even senior leadership. This transparency fosters a trusting and supportive
work environment. All employees including workers and contractual staff, can voice their concerns
anonymously by reporting to sgl.whistleblower@vedanta.co.in. Vedanta’s Technical Standard-Grievance
Mechanisms outlines reporting mechanism for grievance for both internal and external stakeholders. All
grievances received are registered, documented, and tracked within a secure database or an equivalent
programme with controlled access. Each grievance is investigated, and a fair chance of representation is
given to other individuals named in the case, if any.
Furthermore, Vedanta has streamlined its grievance registration process through the following initiatives:
•
Unified HRMS System: The Darwin Box HRMS system incorporates a centralised employee helpdesk
accessible to all employees. This portal serves as a one-stop shop for addressing employee queries and
concerns.
•
Dedicated HR SPoCs: For personalised assistance, Vedanta has designated HR Single Points of Contact
(SPoCs) to address employee grievances effectively. HR of the respective businesses share grievances
with the authorised person. The grievances are expected to be resolved within 20 days of being
reported. If a grievance is not resolved within the stipulated time, the issue is escalated to the grievance
committee, which then takes the action to close the grievance.
•
Grievance/suggestion Boxes: Sites have suggestion boxes installed, where employees, and business
partners can report a grievance or offer solutions to improve processes.
•
Grievances can also be raised informally during meetings, engagement sessions.
Other than Permanent
Workers
Permanent Employees
Other than Permanent
Employees
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7.
Membership of employees and worker in association (recognised by the listed entity:
Category
FY 2024
FY 2023
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
respect©
category (C)
No. of employees/
workers in respective
category, who are part
of association(s) or
Union (D)
% (D/C)
Total Permanent
Employees
12,766
19
0.15%
10,869
812
7%
Male
10,170
13
0.13%
8,926
710
8%
Female
2,596
6
0.2%
1,943
102
5%
Total Permanent Workers
4,760
3,903
82%
3,758
3,704
99%
Male
4,555
3,740
82%
3,677
3,625
99%
Female
205
163
80%
81
79
98%
8.
Details of training given to employees and workers:
The numbers below refer to training provided to all categories of our workforce. Specifically, training to workers include
both permanent and other than permanent workers.
Category
FY 2024
FY 2023
Total (A)
On Health and Safety
measures
On Skill
upgradation
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
10,368
3,89,747
3,759%
28,392
274%
9,744
8,563
88%
9,271
95%
Female
2677
5,439
203%
6,709
251%
2,145
1,684
79%
1,940
90%
Total
13,045
3,95,186
3,029%
35,101
269%
11,889
10,247
86%
11,211
94%
Workers
Male
81,383
9,30,679
1,114%
54,339
67%
29,517
23,941
81%
8,646
29%
Female
2,587
6,963
269%
933
36%
453
391
86%
156
34%
Total
83,970
9,37,732
1,117%
55,272
66%
29,970
24,332
81%
8,802
29%
* The number of people trained during the year is higher than the headcount at the closing of the year. This is because training numbers
include those who may have undergone multiple training courses during the year, and those employees and workers who may have left
during the year and are no longer part of the organisation.
9.
Details of performance and career development reviews of employees and worker:
Category
FY 2024
FY 2023
Total (A)
No. (B)
% (B/A)
Total (C)
No. (D)
% (D/C)
Employees*
Male
10,368
10,368
100%
9,714
9,205
95%
Female
2,677
2,677
100%
2,122
1,973
93%
Total
13,045
13,045
100%
11,836
11,178
94%
Workers
Male
4,555
737
16%
4,598
2,885
63%
Female
205
4
2%
111
94
85%
Total
4,760
741
16%
4,709
2,979
63%
* Data under the employees category is for employees eligible for performance and career development reviews for the year.
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 a system?
Yes, Vedanta’s health and safety policy is aligned with International Council for Metals and Mining (ICMM) guidelines,
International Finance Corporations (IFC) recommendations and applicable international standards. It is committed to
achieving excellence in Health and Safety Management. Our goal is to eliminate unsafe work conditions. This applies
across all our operations, encompassing subsidiaries, joint ventures, associates, and acquisitions. All our operations are
certified with ISO 45001:2018. A robust government structure has been implemented and monitored via Vedanta Safety
Performance Standard.
b.
What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by
the entity?
In line with the requirements of ISO 45001:2018, the Technical Standard-Safety Management (https://www.vedantalimited.
com/uploads/esg/esg-sustainability-framework/Safety-Management.pdf) sets out the requirement of following
established methodologies such as Hazard Identification study (HAZID), Hazard and Operability study (HAZOP), or a
quantitative risk assessment (QRA) along with Job Safety Analysis (JSA) to identify facility-specific occupational risks
and hazards. Further, management plans are developed, and a structured approach is adopted to eliminate and control
the identified hazards, such as safety interaction, VFL(Visible Felt Leadership) visits, contractors safety field audit(CSFA),
further based on the data received from Enablon(Vunified Digital Platform for HSES process), sites are assessed and
action plans are ensured.
Further, Vedanta has initiated a Critical Risk Management (CRM) program, a risk-based approach based on International
Council for Metals and Mining’s (ICMM) 9-step methodology to identify and evaluate critical risks and to measure the
effectiveness of control activities. Under CRM, we have identified 13 critical risks namely Vehicle Pedestrian Interaction,
Fall of person and objects from Height, Uncontrolled Release of Energy, Uncontrolled Load During Lifting, Event in Confined
Space, Contact with Electricity, Entanglement in Moving and Rotating Equipment, Events in Rail operations, Slope Failure-
Surface, Fall of Ground: Under Ground, Incidents during Blasting, Incidents in Shaft & hoisting and Loss of containment
of Molten Material across our operations based on past incidents and fatalities records. We are in a continuous process
of rolling out improvised control designs for the risks identified to minimise or eliminate each risk across the Group and
create a zero-harm workplace for all.
c.
Whether you have processes for workers to report the work-related hazards and to remove themselves from such risks.
(Y/N)
Yes, Vedanta’s digital platform called "V-Unified”, serves as a central system for reporting any work-related hazards
by employees, workers, visitors, etc. This system allows for effective tracking and closure of every hazard reported in
the system. Each site is assigned a healthiness score, which is meticulously tracked to enhance safety controls and
infrastructure continuously. Following additional measures have been taken to ensure minimum safety incidents:
•
All our employees are required to conduct safety interactions, scheduled hazard tours, critical risk verifications enabling
employees to identify and report potential hazards. These processes are governed by our standards like MS11, GN42,
GN43, which are part of the Vedanta Sustainability Framework (VSF).
•
Vedanta businesses have deployed tech-based camera surveillance systems such as AI cameras (T-Pulse system),
at most of its sites/plant locations. These systems assist in monitoring and reporting of unsafe acts/conditions in
real time.
– Employees have the right to refusal of work if they feel unsafe to work. Safety teams conducts regular trainings
onsite to promote the mindset and practice of exercising the right.
•
Each site is assigned a healthiness score, meticulously tracked to enhance safety controls and infrastructure
continuously. Across all our operations, we adhere to a 'Safety Pause' protocol, ensuring that work halts immediately if
deemed unsafe, mitigating any potential incidents or accidents proactively.
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d.
Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No)
Yes, most of our employees and workers are covered under the company’s medical and healthcare insurance. Additionally,
the Company offers life insurance and accident coverage policies to provide financial protection and support in
unforeseen circumstances.
Vedanta prioritises employee well-being and believes that a healthy physical, mental, and emotional state enhances
performance and productivity. We have implemented various employee support programs and well-being initiatives,
which include:
•
Access to well-equipped hospitals across all the Business Units.
•
Annual health check-ups and awareness sessions for all employees are conducted. These sessions cover both physical
and mental well-being.
•
Advanced Life Supporting Ambulance system with highly trained professionals who take care of complete medical
emergencies. One of our Business Units, ESL has partnered with M/s Apollo for managing OHC and Air Ambulance
services, have initiated medical consultation facility for employees and their families at Bokaro City and developed 500+
trained first aiders.
•
Training programs across locations to help employees manage stress and maintain a healthy work-life balance.
•
Access to sports and fitness centers across our sites.
11. Details of safety related incidents, in the following format:
Safety Incident/Number
Category
FY 2024
FY 2023
Lost Time Injury Frequency Rate (LTIFR)
(per one million-person hours worked)
Employees
0.52
0.44
Workers
0.63
0.54
Total recordable work-related injuries (Nos.)
Employees
32
30
Workers
336
271
No. of fatalities
Employees
0
1
Workers
3
12
High consequence work-related injury or ill-health
(excluding fatalities)*
Employees
2
NA
Workers
2
NA
* The number includes only ‘amputation-related injuries’ as high consequence work related injury/ill health (excluding fatality).
12. Describe the measures taken by the entity to ensure a safe and healthy workplace.
Vedanta prioritises safety through a comprehensive health and safety framework. This framework governs all
organisational activities and is implemented through established technical, management, and safety standards.
Recognising the inherent risks associated with our operations, we are steadfastly committed to achieving a zero-
harm work environment. Safety and occupational health remain core values, guiding our continuous efforts
towards improvement.
Leveraging insights gleaned from past incidents, we have proactively identified key challenges and developed a multi-
pronged action plan. This plan outlines several initiatives aimed at enhancing safety, some of which include:
•
Critical Risk Management (CRM): Leveraging past incident data, Vedanta has proactively identified 13 critical risks.
To mitigate these, a comprehensive Critical Risk Management Program has been established. This program details
specific control measures for each identified risk and has been implemented across all Vedanta operations. The
program empowers our line functions to continually monitor the effectiveness of these critical controls, ensuring a
consistently safe work environment.
In FY2024 alone, the program facilitated the completion of approximately 46,000 verification activities and the
generation of 2,500 action plans, demonstrating our unwavering commitment to continuous improvement in safety..
•
Improving safety infrastructure: Complementing our Critical Risk Management Program, the Infra-matrix program
identifies critical infrastructure requirements associated with each high-priority risk. This program ensures that all
Vedanta sites implement these essential infrastructure elements. The program has contributed to significant safety
enhancements, including building 30+km pedestrian pathway network, 80+ designated parking areas, 47km of conveyor
guarding, and the procurement of 2,000 electrical PPE units and specialised tools. The Infra-matrix program fosters a
culture of safety by garnering strong commitment from senior management, who play a vital role in ensuring sufficient
focus is placed on infrastructure needs.
•
Provision of PPEs: Vedanta prioritises the well-being of its workforce by ensuring all employees and workers have
access to appropriate personal protective equipment (PPE). This PPE is carefully selected to address the specific risks
and requirements associated with each individual's role and work environment. Furthermore, Vedanta maintains a
system of strict availability, guaranteeing that PPE is readily accessible to all personnel before they begin their tasks.
This proactive approach fosters a culture of safety and empowers our employees to work confidently.
•
Safety Governance System: A CEO-sponsored committee comprising of a Business Unit CEO, with business unit and
safety experts representation governs critical risk management, infrastructure implementation, and injury prevention
efforts. This ensures continuous improvement in site safety performance.
•
Employee and Tier 1 Supplier Business Partner Training: Vedanta fosters a safety-first culture through comprehensive
training programs, including on-site sessions, virtual webinars, and CEO-led discussions, empowering both employees
and tier 1 suppliers business partners to prioritise safety and intervene in unsafe situations.
13. Number of Complaints on the following made by employees and workers:
FY 2024
FY 2023
Filed during
the year
Pending
resolution at the
end of year
Remarks
Filed during
the year
Pending resolution
at the end of year
Remarks
Working Conditions
702
41
-
Data not collected
Data not collected
-
Health & Safety
602
41
-
Data not collected
Data not collected
-
14. Assessments for the year:
% Of your plants and offices that were assessed (by entity or statutory authorities or third parties)
Health and safety
practices
100%
All operational sites are ISO 45001:2018/ OSHAS 18001:2007 certified and audited by the third party once in three
years for due renewal of certifications.
Further, the Company’s Vedanta Sustainability Assurance Process (VSAP) in place to verify compliance of all
our Business Units with the Vedanta Sustainability Framework (VSF). Audits are conducted regularly by an
independent, third party organisation under VSAP.
Working Conditions
100%
Labour Practices, including working conditions is an important part of VSAP Module assessment, and all
operating sites are annually audited by third party under VSAP.
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 and safety practices and working conditions.
During the year, Vedanta experienced near-miss incidents, injuries, and fatalities at our operating sites. Workplace safety
continues to be a significant concern for the management. We are committed to ongoing improvement in this area,
and have conducted a comprehensive review of our safety strategies. The review helped us to identify opportunities to
strengthen safety measures at all operational levels.
Any incident once reported is subject to a thorough investigation by the leadership team. Of all the incidents, High-
Potential Incidents (HiPos), and fatalities are investigated in the most comprehensive manner. Key learnings and insights
gleaned from these investigations are disseminated across the organisation, fostering a culture of shared knowledge and
understanding. This multi-level communication promotes the exchange of diverse perspectives and facilitates continous
improvement of control designs. In FY 2023-24, unfortunately we had 3 fatalities due to road accidents and work at height.
Few corrective actions are listed below:
1.
AI-based surveillance: Vedanta is committed to leveraging technological advancements to bolster safety measures.
We have implemented a detect technology solution for real-time safety surveillance of personnel behaviour. This
system proactively identifies potential safety violations and triggers alerts to designated personnel, enabling timely
intervention and corrective action. The system encompasses a variety of use cases designed to mitigate specific
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risks, including Personal Protective Equipment (PPE) Compliance Monitoring, Vehicle-Pedestrian Interaction
Detection, Fall Protection Monitoring at Height. More than 300 cameras are configured for this purpose. By leveraging
such advanced detection technology, Vedanta aims to create a proactive safety environment that fosters a culture of
risk awareness and reduces the potential for incidents.
2.
Enablon implementation: Vedanta has implemented Enablon, a unified digital platform for comprehensive
management of safety and sustainability data. This platform centralises the reporting, tracking, and analysis of
various data points, such as incident data, observation data, and inspection data. Enablon empowers our businesses
to make data-driven decisions for continuous improvement. It facilitates transparent reporting with clear timelines
accessible by all organisational levels. The platform also streamlines the reporting process, enabling timely closure of
reports and minimising manual data capture, thereby reducing the risk of human error and limitations.
3.
Critical Risk Management: Leveraging insights from past fatality data, Vedanta has proactively identified 13 critical
risks. To mitigate these risks, a comprehensive Critical Risk Management Program has been established. This
program details specific control measures for each identified risk. The Vedanta Critical Risk Management Program
has been implemented across all operational sites, ensuring the consistent effectiveness of these critical controls in
safeguarding personnel.
4.
Infra-matrix Program: Complementing our Critical Risk Management Program, the Infra-matrix program identifies
critical infrastructure requirements associated with each high-priority risk. Details on this program have been
provided in question 12 above.
5.
Integrated Traffic Management System (ITMS): Vehicle and Driving is one of the top risks of Vedanta. To avoid
adverse people-vehicle interactions, the ITMS seeks to ensure implementation of adequate parking infrastructure
and rest-facilities for drivers, vehicle route mapping and monitoring, maintaining inflow and outflow of vehicle traffic,
paperless entry and driver protection. HZL and Sterlite Copper have completely implemented this system and other
business are inline to implement.
By implementing these corrective actions, Vedanta aims to prevent future fatalities and improve overall safety across
the Company.
Leadership Indicators
1.
Does the entity extend any life insurance or any compensatory package in the event of death of (A) Employees (Y/N) (B)
Workers (Y/N).
Yes, Vedanta goes beyond medical care by offering life and accident insurance, ensuring employees, workers and their
loved ones are financially secure in case of accidents in the workplace. Moreover, to promote a healthy workforce, Vedanta
conducts regular periodic health check-ups for employees. These check-ups help to identify any potential health issues
early on, enabling timely intervention and appropriate medical care.
2.
Provide the measures undertaken by the entity to ensure that statutory dues have been deducted and deposited by the
value chain partners.
We have implemented measures to ensure that all statutory dues are properly deducted and deposited by our tier 1
suppliers. All contracting agreements with the tier 1 suppliers outline the obligation of the contractor to fulfil their statutory
dues with respect to payment of wages to their employees as per the national regulations. Contractual agreements
mandate that vendors submit wage registers and PF challans for each month, serving as evidence of payment to contract
workers. Regular internal audits are conducted to ensure compliance with labour laws at various establishments and work
centres. Few of our businesses have also adopted additional measures to ensure that there is no non-compliance.
3.
Provide the number of employees / workers having suffered high consequence work- related injury / ill-health /
fatalities (as reported in Q11 of Essential Indicators above), who have been rehabilitated and placed in suitable
employment or whose family members have been placed in suitable employment:
Total no. of affected employees/workers
No. of employees/workers that are rehabilitated
and placed in suitable employment or whose
family members have been placed in suitable
employment.
FY 2024
(Current FY)
FY 2023
(Previous FY)
FY 2024
(Current FY)
FY 2023
(Previous FY)
Employees
2
-
2
-
Workers
5
-
1
-
4.
Does the entity provide transition assistance programs to facilitate continued employability and the management of
career endings resulting from retirement or termination of employment? (Yes/ No)
Most of the Business Units of Vedanta do not provide any assistance programs for continued employability. Certain
Business Units have provisions to retain employees who intend to continue working post-retirement. Some of the highly
qualified employees are retained as advisors after their superannuation. During employment, several skill upgradation
programmes are imparted to employees to facilitate continued employability.
5.
Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners) that were assessed*
Health and safety practices
32.27%
Working conditions
32.27%
* These numbers represent Vedanta’s tier 1 suppliers only.
6.
Provide details of any corrective actions taken or underway to address significant risks / concerns arising from
assessments of health and safety practices and working conditions of value chain partners.
Vedanta conducts preliminary screening of all our new tier 1 suppliers on ESG aspects including health and safety and
working conditions. This is followed by induction sessions to familiarise them with our sustainability policies-health and
safety, human rights, code of conduct standards and systems.
To enhance health and safety across its value chain, Contractor Field Safety Audits (CFSAs) are conducted to verify the
presence of safety measures and appropriate working conditions. Following these audits, corrective and preventive actions
are implemented based on the findings. As a result of this engagement, we have observed increased awareness of health and
safety matters and improved adherence to providing decent and safe working conditions.
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Essential Indicators
PRINCIPLE 4
Businesses should respect the
interests of and be responsive to
all its stakeholders
Essential Indicators
1.
Describe the processes for identifying key stakeholder groups of the entity.
Our stakeholders are those individuals or organisations who have an interest in our Company’s activities, and/or whose
actions impact our ability to execute our strategy. Vedanta recognises the importance of healthy stakeholder engagement
as a key to strong and long-term relationships with them and considers stakeholder identification as an ongoing process
to 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 may cause hinderance to their success.
Vedanta has formulated a Guidance Note for External Stakeholder Engagement and Technical Standard for Stakeholder
Engagement, which are in line with IFC, UNGC and other international standards. We distinguish between stakeholders
based on whether our activities directly or indirectly affect them. To map this accurately we follow the steps given below:
•
List the stakeholders involved in the company's value creation process.
•
Classify stakeholder groups as internal or external after proper organisation-wide consultation and review.
Proactive stakeholder identification provides a key insight on challenges and opportunities and enables us to effectively
manage their social risks and responsibilities and foster a more inclusive foundation for our business operations. This
identification mechanism provides an opportunity to identify material issues for the Company.
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 and
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)
Purpose and scope of engagement including key topics
and concerns raised during such engagement
Employees
and Workers
Yes.
Certain sections
of this stakeholder
group would
be classified as
vulnerable, namely:
Women, members
from LGBTQ+
community, persons
with disabilities and
certain contractual
workers.
•
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
Monthly
We undertake employee performance management
and employee feedback as primary mode of
engaging with the employees.
In addition, other engagement objectives include:
•
Ensuring a safe workplace
•
Improving training on Health and Safety and
other pertinent material issues.
•
Providing increased opportunities for career
growth through internal talent recognition
•
Increasing the gender diversity of the
workforce
Key expectations:
•
Safe Workplace
•
Improved training on safety
•
Increased opportunities for career growth
•
Increasing the gender diversity of the
workforce
UN SDG mapped:
Stakeholder
Group
Whether identified
as Vulnerable and
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)
Purpose and scope of engagement including key topics
and concerns raised during such engagement
Investors,
Lender and
Shareholders
No
•
Investor’s Presentation
•
General Meetings
•
AGM
•
Quarterly Result Calls
•
Dedicated Contact
Channel: vedantaltd.ir@
vedanta.co.in and esg@
vedanta.co.in
Annual
Quarterly
Support and feedback from shareholders
offer ongoing direction for management and
governance. Maintaining open communication
channels with analysts and the investor community
facilitates connections with management.
Additionally, addressing ESG concerns is significant
to shareholders.
Key expectations:
•
Consistent disclosure of economic, social, and
environmental performance
•
Transparent communication about business
operations
Local
Community
Yes
Certain sections
of this stakeholder
group can be
categorised as
vulnerable, namely:
Tribal communities,
economically-
weaker communities
•
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
Monthly
Engaging with the community fosters an
understanding of crucial social factors essential
for the sustainable development of the community,
which ultimately contributes to overall business
growth and sustainability. This entails a focussed
approach to enhancing the economic well-being
and quality of life of the community. It also involves
mitigating environmental and social impacts that
could affect communities adversely.
During these engagements, initiatives aimed
at promoting overall community growth and
development are identified. Based on these
initiatives, strategies for implementation are
formulated.
Our FY 2023-24 engagement initiatives were:
•
Completed baseline, need, impact and SWOT
assessments in all Bus.
•
Community grievance process followed at all
operations.
Key expectations
•
Undertaking need-based community
infrastructure projects
•
Increasing the reach of community
development programmes
•
Provision of jobs and other means of livelihood
•
Improving the grievance mechanism
NGOs and
Civil Society
No
•
Partnerships with,
and membership
of international
organisations
•
Working relationships
with organisations on
specific projects
•
Engagement with
international, national,
and local NGOs
•
Conferences and
workshops
•
Dedicated contact
channel – esg@
vedanta.co.in
Semi-annually
Engaging with NGOs and civil society enables us
to consistently monitor and evaluate our ongoing
CSR initiatives while also strategising for future
opportunities. This collaboration aids in aligning
our policies with the global sustainability agenda.
Our FY 2023-24 engagement initiatives were:
•
Membership of international organisations
including the United Nations Global Compact
(UNGC), Confederation of Indian Industry (CII),
and Indian Biodiversity Business Initiative (IBBI)
•
Alignment to Sustainable Development Goals
•
Compliance to the Modern Slavery Act
•
National Alliance for People
Key expectations:
•
Expectations of being aligned with the global
sustainability agenda.
•
Compliance with Human Rights
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Stakeholder
Group
Whether identified
as Vulnerable and
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)
Purpose and scope of engagement including key topics
and concerns raised during such engagement
Suppliers,
Customers
No
•
Customer satisfaction
surveys
•
Vendor score cards
•
In-person visits to
customers, suppliers,
and vendor meetings
Quarterly
Prioritising contractual integrity and elevating
customer satisfaction are top priorities. Product
innovation and development are driven by
customer needs. Maintaining operational efficiency,
with timely supplies and streamlined logistics,
is crucial to meet sustainability and responsible
sourcing goals. Furthermore, ensuring the safety of
workers and the workplace is equally imperative.
Key expectations:
•
Consistent implementation of the Code of
Business Conduct and Ethics.
•
Ensuring contractual integrity and data privacy.
Regulators
No
•
Government
consultation programs
•
Engagement with
national, state, and
regional government
bodies at business and
operational level
•
Meet all the regulatory
requirements
Continuous
basis
The purpose of engaging with regulators has been
listed below:
•
Compliance with laws
•
Support to Government’s on-ground initiatives
through CSR and contribution to local
economy.
•
Contribution of our business to nation-building
through our products, taxes and royalties
•
Policy advocacy on subjects relevant to the
company
•
Suggest projects to district administration/
Mining Engineer offices for consideration and
utilising of DMFT funds in mining areas.
Leadership Indicators
1.
Provide the processes for consultation between stakeholders and the Board on economic, environmental, and social
topics or if consultation is delegated, how is feedback from such consultations provided to the Board.
Stakeholder consultation is an ongoing endeavour. We engage regularly across various platforms to ensure inclusive
dialogue. Each Business Unit has its tailored engagement plan, overseen by Business Unit heads, who maintain consistent
communication with relevant stakeholders.
Each Board committee seeks representation from relevant functional teams. These functional teams provide the Board
with regular updates, including feedback and expectation from stakeholders. Eg: The HSE & Sustainability team provides
updates to the ESG Committee on consultations and discussions from stakeholders such as investors, rating agencies,
media, and employees. Similarly, the CSR team provides updates from local communities to the CSR Committee. The
Company Secretary and Legal teams assists the Audit committee understand concerns raised by shareholders and
regulators, Additionally, the Annual General Meeting provides the Board to interact with shareholders on a quarterly basis.
2.
Whether stakeholder consultation is used to support the identification and management of environmental, and social
topics (Yes / No). If so, provide details of instances as to how the inputs received from stakeholders on these topics
were incorporated into policies and activities of the entity.
Yes.
Stakeholder consultation is a key element of the materiality assessment exercise, one of the major activities are
stakeholder consultation. At the heart of the stakeholder engagement process lies the determining of issues that are
material to our business from the environmental, social and governance perspectives. These issues also reflect the needs
and concerns of our stakeholders. In FY 2022-23, a Group-wide materiality assessment exercise was carried out, along
with similar exercises at three of our Business Units. The broad process followed is delineated below:
•
Circulation of interview guides and questionnaires among the identified groups of stakeholders.
•
Arrangement of stakeholder meetings by relevant departments within Vedanta.
•
Capture of the feedback given and the suggestions made
We maintain a consistent and robust connection with stakeholders, both internal and external, regarding sustainable
issues, recognising their impact on our business. Regular engagement helps us grasp their perspectives and adjust to
market dynamics for proactive risk management.
To prioritise material issues, we analysed stakeholder responses and conducted a risk assessment according to ICMM
requirements. Using a scoring methodology, we evaluated the severity and likelihood of each issue, categorising them
as high, medium, or low priority. Our prioritisation considers both financial materiality, focussing on topics influencing
enterprise value, and impact materiality, addressing issues affecting stakeholders, the economy, environment, and people.
Through this process, we gain qualitative and quantitative insights into Vedanta's environmental and social impact,
aligning our nine aims with relevant KPIs, policies, and standards.
3.
Provide details of instances of engagement with, and actions taken to, address the concerns of vulnerable/
marginalised stakeholder groups.
Employees: We have established a welfare committee to help with employee engagement initiatives through employee
training, and by organising other outreach activities.
LGBTQ Community: To reinforce our commitment towards creating a discrimination-free and inclusive workplace and to
promote supportive behaviour within our organisation, we have launched ‘Samanvay’, a group-wide gender sensitisation
and awareness drive.
For example, Vedanta has introduced a pioneering 'Gender Reaffirmation Leaves and Compensation Policy' for LGBTQ+
employees across all its locations. The policy supports transgender employees with a one-time grant of ` 2 lakhs
rupees for gender reassignment surgery expense. It also provides a 30-day paid leave to ensure a supportive transition
period focussed on self-care for those utilising the policy. Moreover, Hindustan Zinc has been recognised at the National
Transgender Awards 2024 for its contribution towards for creating equal opportunities for the LGBTQ community.
Community: The Company has established a comprehensive social framework as a key to engaging with local
communities. The Social Performance Steering Committee (SPSC) employs a cross-functional approach to community
engagement through community group meetings and village council meetings.
We have established a dedicated on-site social performance management team and a robust grievance redressal
framework to effectively manage our community relations. Our approach across all businesses involves localised
community consultations and needs assessments. We actively engage in open dialogues with communities near our
operations to understand their developmental and livelihood needs, tailoring interventions accordingly. This direct
engagement acknowledges the unique needs and aspirations of each community, empowering them and promoting
local capacity-building. Our system incorporates two-way communication mechanisms to systematically capture and
document any questions, complaints, grievances, or incidents raised by communities. Business Unit wise site-level
staff reports community incidents, which are discussed in larger employee meetings. This ensures that the needs and
expectations of the community are met while fostering transparent and constructive communication.
In the last quarter of FY 2022-23, Vedanta had introduced ‘Project Panchhi’ an innovative corporate recruitment drive
which aims to employ 1,000 girls from economically backward communities, across its diverse businesses in metals,
mining, oil and gas situated pan-India. The target demography of this drive is girls from lower income families who are
likely to opt out of pursuing further studies and a fulfilling career, owing to financial and social constraints. Project Panchhi
strives towards inclusive development of the local communities, in line with Vedanta’s overall vision for diversity, equity
and inclusion The objective of the programme is two-fold – To create opportunities for deserving young women from
underserved, remote communities in the immediate vicinity of the company’s metals, mining and oil and gas businesses
in Odisha, Chhattisgarh, Rajasthan, Jharkhand, Karnataka, and Goa and to increase the diversity in its workforce by
specifically focussing on the recruitment of girls and women, who are underrepresented in the metals, mining and heavy
engineering industries. In the first phase, 40 such girls have been identified for recruitment, at Vedanta Aluminium’s
Lanjigarh operations. The selected candidates were handed over their offer letters in the felicitation ceremony arranged.
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Essential Indicators
PRINCIPLE 5
Businesses should respect and
promote human rights.
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
FY 2024
FY 2023
Total (A)
No. of
employees/
workers
covered (B)
% (B / A)
Total (C)
No. of
employees/
workers
covered (D)
% (D / C)
Employees*
Permanent
12,766
25,479
200%
10,892
10,133
93%
Other than permanent
279
707
253%
605
594
98%
Total Employees
13,045
26,186
201%
11,497
10,727
93%
Workers*
Permanent
4,760
2
0.04%
2,615
753
29%
Other than permanent
79,210
47,609
60%
17,313
6,038
35%
Total Workers
83,970
47,611
57%
19,928
6,791
34%
* The number of people trained during the year is higher than the headcount at the closing of the year. This is because training numbers
include those who may have undergone multiple training courses during the year, those employees and workers who may have left
during the year and are no longer part of the organisation
2.
Details of minimum wages paid to employees and workers, in the following format:
Category
FY 2024
FY 2023
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
12,766
0
0%
12,766
100%
7,077
0
0%
7,077
100%
Male
10,170
0
0%
10,170
100%
5,710
0
0%
5,710
100%
Female
2,596
0
0%
2,596
100%
1,367
0
0%
1,367
100%
Other than
Permanent
279
0
0%
279
100%
262
0
0%
262
100%
Male
198
0
0%
198
100%
175
0
0%
175
100%
Female
81
0
0%
81
100%
85
0
0%
85
100%
Workers
Permanent
4,760
14
0.29%
4,746
99%
4,423
19
0%
4,404
100%
Male
4,555
14
0.31%
4,542
99%
4,339
19
0%
4,320
100%
Female
205
0
0%
204
99%
84
0
0%
84
100%
Other than
Permanent
79,210
12,996
16%
66,655
84%
36,167
4,536
13%
31,631
87%
Male
76,828
12,599
16%
64,538
84%
35,467
4,580
13%
30,887
87%
Female
2,382
397
17%
2,117
89%
700
31
4%
669
96%
UN SDG mapped:
3.
Details of remuneration/salary/wages, in the following format:
a.
Median remuneration / wages:
Male
Female
Number
Median remuneration/
salary/ wages of
respective category (`)
Number
Median remuneration/
salary/ wages of
respective category (`)
Board of Directors (BoD)
(Whole-time directors)*
4
1,02,50,000
2
1,22,50,000
Key Managerial Personnel**
2
17,74,86,703
1
1,38,10,454
Employees other than BoD and KMP
9,097
12,67,780
2,043
9,21,562
Workers***
-
-
-
-
* BoD, and KMP data has been disclosed for VEDL Standalone
** The median remuneration for BoDs does not include KMPs who are part of the BoD.
# Median data is calculated only for those individuals who were in our system for the entire 365 days.
*** This year data not collected
b.
Gross wages paid to females as % of total wages paid by the entity, in the following format:
FY 2024
Current Financial Year
FY 2023
Previous Financial Year
Gross wages paid to females as % of total wages
12.25%*
Data not collected
* Category of employees: covered Permanent Employees & Permanent Workers
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, Vedanta upholds core value of ‘Respect’, which is evident in our approach to human rights. Our Human Rights Policy
underscores our unwavering commitment to fulfilling our social responsibilities as both a direct and indirect employer,
while also ensuring the protection and respect of human rights for all stakeholders. The company also complies with the
Modern Slavery Act (UK), 2015.
We work to enhance our social performance and address the impacts our activities have on communities through cross-
functional Social Performance Steering Committee (SPSC) established at all our sites. The committee employs a cross-
functional approach to community engagement through community group meetings and village council meetings.
Additionally, the SPSC is supported by the Company functions such as External Affairs/ Public Relations, Operations,
Security, CSR, Human Resources (HR), HSE, Finance, and Corporate Communications and each one has specific
responsibilities for preventing and addressing concerned human rights such as leaves, hours, wages, child or forced
labor, health and safety, discrimination, freedom of association and others. Each of these departments has distinct duties
in preventing and addressing human rights issues, maintaining human rights standards, and ensuring that suitable
safeguards are in place to protect the rights and well-being of individuals impacted by the Company’s operations.
The SPSCs ensure an effective local stakeholder engagement and a grievance redressal mechanism in a timely manner
addressing any human rights impacts associated with the Company’s business operations. The Social Performance
Manager (SPM) is the convening authority for the SPSC, which is supported by a Community Liaison Officer (CLO), whose
primary responsibility is to have regular interactions with the local communities.
5.
Describe the internal mechanisms in place to redress grievances related to human rights issues.
Vedanta’s Technical Standard and Guidance Note on the Grievance Mechanism, is a part of the Vedanta Sustainability
Framework (VSF). This mechanism serves as a platform for both employees and external stakeholders to voice their
concerns or grievances related to human rights issues. This mechanism is designed to accept and resolve complaints,
disputes, or grievances presented by employees or external stakeholders. It offers a fair and prompt avenue to all
community segments to express their concerns.
The Company’s Grievance Mechanism is communicated through community liaisons and ongoing engagement, which
ensures that aspects of legitimacy, accessibility, predictability, equitability, rights-compatibility, transparency, dialogue, and
engagement are met. It provides clear processes for complaint and grievance resolution and includes escalation pathways
for unresolved issues.
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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 to continuously improving practices to uphold the well-being and dignity of all individuals impacted by our operations.
The concerns received are recorded and addressed with prompt interventions from the grievance redressal cell. The
concern is investigated, resolved, closed with a report, and communicated to the concerned grievance holder. Grievances
are attempted to be resolved within 30 days or less from identification, if unresolved for whatsoever reason, the
Community Liaison Officer (CLO) updates the SPM and the grievance holder with bimonthly progress. After resolution,
the grievance holder’s feedback is obtained on the redressal experience and outcome. The SPM monitors quarterly
performance of the grievance mechanism against the principal outcome and expectations and share findings with the
location head, SPSC and Corporate HSES.
6.
Number of Complaints on the following made by employees and workers:
FY 2024
FY 2023
Filed
during
the year
Pending
resolution at the
end of year
Remarks
Filed
during
the year
Pending
resolution at the
end of year
Remarks
Sexual Harassment
28
3
-
17
0
-
Discrimination at workplace
1
0
-
5
0
-
Child Labour
0
0
-
0
0
-
Forced Labour/Involuntary Labour
0
0
-
0
0
-
Wages
27
7
-
8
3
-
Other human rights related issues
13
4
-
14
0
-
7.
Complaints filed under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013, in the following format.
FY 2024
Current Financial Year
FY 2023
Previous Financial Year
Total Complaints reported under Sexual Harassment on of Women at Workplace
(Prevention, Prohibition and Redressal) Act, 2013 (POSH)
28
-
Complaints on POSH as a % of female employees / workers
0.53%
-
Complaints on POSH upheld
23
-
8.
Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases.
Vedanta adheres to a strict policy of zero tolerance for any discrimination and harassment across its operations. The
company has established an Anti-Harassment Policy and a Policy on the Prevention and Prohibition of Sexual Harassment
at the Workplace (POSH). The goal is to foster an environment that is devoid of any form of intimidation, oppression,
exploitation, discrimination, and harassment across the entire organisation.
Vedanta firmly acknowledges the necessity of creating a secure environment where employees can voice their concerns
without fear of adverse repercussions. Therefore, Vedanta strictly maintains confidentiality regarding employee
information disclosed during investigations. This approach is designed to protect the complainant and witnesses from any
potential disadvantages or adverse outcomes. In accordance with the POSH policy, Vedanta takes decisive measures to
safeguard individuals who lodge complaints from any form of victimisation or retaliation.
Vedanta has constituted an Internal Complaints Committee (ICC), in line with the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act 2013, to address all complaints related to harassment, sexual as well
as non-sexual in nature. The complaint shall be reported to the ICC constituted or shall be e-mailed to sexualharrassment@
vedanta.co.in, and the Company policies have a well-defined procedure in place to resolve such cases.
To ensure awareness and sensitivity towards these issues, we 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.
9.
Do human rights requirements form part of your business agreements and contracts? (Yes/No)
Yes, human rights requirements form an integral part of our business agreements and contracts.
The Suppliers Code of Conduct sets forth requirements of highest standards of conduct including human rights protection,
which all suppliers are required to comply with and adhere to when conducting business with Vedanta. Further, all
contractors/vendors undergo a screening process before on-boarded to assess them against Vedanta’s standards and
business practices.
Vedanta complies with United Nations Declaration on Human Rights (UNDHR), UN Guiding Principles of Business and
Human Rights, Universal Declaration of Human Rights (UNDHR), International Labour Organisation (ILO), Modern Slavery
Act (UK) 2016 and applicable national and local legislations.
10. Assessments for the year:
% Of your plants and offices that were assessed (by entity or statutory
authorities or third parties)
Child labour
None of plants and offices were assessed in FY2024. However, we plan to carry out an
human rights assessments across all our operational business units using an external
agency in FY 2024-25.
100% of our operational Business Units have conducted human rights self-assessment
in FY 2022-23.
Forced/involuntary labour
Sexual harassment
Discrimination at workplace
Wages
Others- please specify
11. Provide details of any corrective actions taken or underway to address significant risks/ concerns arising from the
assessments at Question 9 above.
No significant risks and concerns have been identified in FY 2023-24 human rights self-assessment. Therefore, no
corrective actions were implemented.
Leadership Indicators
1.
Details of a business process being modified / introduced because self-assessment of addressing human rights
grievances/complaints.
In FY 2022-23, Vedanta utilised the Global Compact Self-Assessment Tool to conduct human rights assessments
across all our sites. These assessments, led by cross-functional teams headed by site heads, covered various thematic
parameters, including labour rights, health and safety impacts, and anti-corruption measures.
Identified areas for development led to the modification and updating of site-level policies and plans, ensuring the
preservation of human dignity in our day-to-day operations and the fair treatment of every employee.
2.
Details of the scope and coverage of any Human rights due-diligence conducted
No due diligence was conducted in FY 2023-24. In FY 2022-23, Vedanta utilised the Global Compact Self-Assessment
Tool to conduct human rights assessments across all our sites. These assessments, led by cross-functional teams
headed by site heads, covered various thematic parameters, including labour rights, health and safety impacts, and anti-
corruption measures. Vedanta will conduct Human Rights due diligence of its operational sites in 2025.
3.
Is the premise/office of the entity accessible to differently abled visitors, as per the requirements of the Rights of
Persons with Disabilities Act, 2016?
Vedanta is committed to fostering an inclusive workplace environment that supports and empowers specially-abled
individuals. We offer tailored support to ensure their comfort and productivity, including workplace modifications,
assistive technologies, and specialised training programs. Many of our premises and offices are equipped with enabling
infrastructure such as ramps, braille-enabled elevators, and text-to-speech software, aligning with the Rights of Persons
with Disabilities Act, 2016.
4.
Details on assessment of value chain partners:
% of value chain partners (by value of business done with such partners)
that were assessed
Sexual Harassment
32.27%
Discrimination at workplace
32.27%
Child Labour
32.27%
Forced Labour/Involuntary Labour
32.27%
Wages
32.27%
Others – please specify- Environmental Impacts
Environmental Impacts: 32.27%
Health and Safety: 32.27%
5.
Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the
assessments at Question 4 above.
-
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Essential Indicators
1.
Details of total energy consumption (in Joules or multiples) and energy intensity, in the following format:
Parameter
FY 2024
FY 2023
From renewable sources
Total electricity consumption (A) (GJ)
60,45,334
48,76,047
Total fuel consumption (B) (GJ))
9,81,223
35,36,283
Energy consumption through other sources (C) (GJ)
10,19,201
-
Total energy consumption from renewable sources (A+B+C) (GJ) (I)
80,45,758
84,12,331
From non-renewable sources
Total electricity consumption (D) (GJ)
2,23,72,000
4,11,52,208
Total fuel consumption (E) (GJ)
61,83,10,668
52,17,87,697
Energy consumption through other sources (F) (GJ)
0
-
Total energy consumption from non-renewable sources (D+E+F) (GJ) (J)
64,06,82,668
56,29,39,905
Total energy consumed (I+J) (GJ)
64,87,28,426
5,71,35,22,351
Energy intensity per rupee of turnover (Total energy consumption/ turnover in rupees)
0.000451
3,843
Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) *
(Total energy consumed / Revenue from operations adjusted for PPP)
0.01011
0.0087361
Energy intensity in terms of physical output
64.97**
-
Energy intensity (optional) – the relevant metric may be selected by the entity (Total energy
consumption/tonne of metal)
-
-
* PPP: INR Revenue X PPP Factor (US$/INR)
PPP Factor = 22.4; World Economic Outlook (April 2024) - Implied PPP conversion rate (imf.org).
** The calculation includes only data related to metal & mining business
1 Vedanta Limited has rectified values from FY 2022-23
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 Mazars Advisory LLP.
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.
The following businesses have been identified as designated consumers under the PAT Scheme of the Government
of India.
•
Aluminium Business (BALCO smelter, Jharsuguda),
•
Integrated Power Plant’s at TSPL, Jharsuguda and BALCO,
•
FACOR, Hindustan Zinc Ltd,
•
ESL Steel Limited
Targets are yet to be assigned by the Government of India for ESL and HZL, while BALCO Smelter (including IPP) has
achieved its target under the PAT cycle 2 in FY 2023-24.
Essential Indicators
PRINCIPLE 6
Businesses should respect and make efforts
to protect and restore the environment.
UN SDG mapped:
3.
Provide details of the following disclosures related to water, in the following format:
Parameter
FY 2024
FY 2023
Water withdrawal by source (in kilolitres)
(i) Surface water
14,13,14,482
14,53,05,251
(ii) Groundwater
1,33,80,778
1,59,29,325
(iii) Third party water
1,03,87,991
36,02,979
(iv) Seawater / desalinated water
-
-
(v) Others: Wastewater from Other Organisation,
Rainwater and Produced Water
4,74,14,897
4,57,37,178
Total volume of water withdrawal* (in kilolitres) (i + ii + iii + iv + v)
21,24,98,148
21,05,74,733
Total volume of water consumption (in kilolitres)*
28,03,09,158
26,60,01,190
Water intensity per rupee of turnover (Water consumed / revenue from operations)
0.0001950
0.000182939**
Water intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)
(Total water consumption / Revenue from operations adjusted for PPP)***
0.004368
0.0040978
Water intensity in terms of physical output****
13.41
-
Water intensity (optional) –the relevant metric may be selected by the entity (Water
consumed/ tonne of metal))
-
-
* The consumption figures do not include an additional 1,21,96,602 KL of water provided to communities residing around our operational
sites. The consumption figure includes 8,47,25,069 KL of recycled water.
** Vedanta Limited has rectified values from FY 2022-23.
*** PPP: INR Revenue X PPP Factor (US$/INR)
PPP Factor = 22.4; World Economic Outlook (April 2024) - Implied PPP conversion rate (imf.org).
**** The calculation includes only data related to metal & mining business
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 Mazars Advisory LLP.
4.
Provide the following details related to water discharged:
Parameter
FY 2024
FY 2023
Water discharge by destination and level of treatment (in KL)
(i) To surface Water
No treatment
0
0
With treatment (please specify level of treatment)
11,24,293
2,01,71,667
(ii) To Ground Water
No treatment
0
0
With treatment (please specify level of treatment)
0
0
(iii) To Seawater
No treatment
0
0
With treatment (please specify level of treatment)
13,57,247
(iv) Sent to third parties
No treatment
0
0
With treatment (please specify level of treatment)
605
(v) Others
No treatment
0
0
With treatment (please specify level of treatment)
7,17,563
Total water discharge (in KL)
31,99,708
2,01,71,667
5.
Has the entity implemented a mechanism for Zero Liquid Discharge? If yes, provide details of its coverage and
implementation.
With several of our plants in water-stressed areas, we require a sustainable and scientific approach to water consumption
and management.
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Presently, most of our Business Units have Zero Liquid Discharge (ZLD) namely BALCO, ESL, Hindustan Zinc Ltd., Fujairah,
Sesa Iron Ore and Silvassa, TSPL, Vedanta Aluminium-Jharsuguda and Lanjigarh. These Business Units employ real-time
monitoring systems, utilising piezometers and Pan-tilt-zoom(PTZ) cameras to ensure that no discharge goes beyond
their operational sites. We ensure that wastewater generated and discharged from our facilities meets all legal standards.
Moreover, live discharge data from all monitoring activities is integrated with the Central Pollution Control Board (CPCB)
server for effective oversight.
Business Units such as Cairn India which do not have a Zero Liquid Discharge (ZLD), use piezometers to monitor outlet
parameters before discharge.
6.
Please provide details of air emissions (other than GHG emissions) by the entity, in the following format:
Parameter
Unit
FY 2024
FY 2023
NOx
MT
1,02,945.87
89,856
S0x
MT
3,99,278.60
5,01,201
Particulate matter (PM)
MT
17,008.32
18,275
Persistent organic pollutants (POP)
MT
-
NA
Volatile organic compounds (VOC)
MT
3.42
NA
Hazardous air pollutants (HAP)
MT
234
NA
Others – please specify
-
-
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 Mazars Advisory LLP.
7.
Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format:
Parameter
Unit
FY 2024
FY 2023
Total Scope 1 emissions (Break-up of the GHG into CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, if available)
Metric tonnes of CO2
equivalent
6,12,88,838
5,71,75,390*
Total Scope 2 emissions (Break-up of the GHG into CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, if available)
Metric tonnes of CO2
Equivalent
45,61,384.17
81,82,542*
Total Scope 1 and Scope 2 emissions per rupee of turnover
tCO2e/ ` million
0.000045816
0.000044949*
Total Scope 1 and Scope 2 emissions per rupee of turnover
adjusted for PPP
0.0010262
0.0010068576
Total Scope 1 and Scope 2 emission intensity in terms of
physical output **
5.66
-
Total Scope 1 and Scope 2 emission intensity (optional)– the
relevant metric may be selected by the entity.
(Scope1+2 emissions/tonne of metal)
-
-
* Vedanta Limited has rectified its Scope 1 and 2 emissions for FY 2022-23.
** The calculation includes only data related to metal & mining business
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 Mazars Advisory LLP.
8.
Does the entity have any project related to reducing Green House Gas emission? If yes, then provide details.
Vedanta’s greenhouse gas emission reduction strategy is designed to align with the goals of the Paris Agreement and
prioritise the transition to a lower-carbon economy. The roadmap consists of four key stages:
Stage I: From 2021 to 2025, the company aims to reduce GHG intensity (measured in tCO2e/MT) of its metal businesses
by 20% compared to the FY 2020-21 baseline.
Stage II: Between 2021 and 2030, there is a focus on creating renewable energy capacity, with the goal of establishing
enough capacity to provide 2.5 GW of round-the-clock (RTC) renewable power for its facilities by FY 2029-30.
Stage III: From 2026 to 2030, the aim is to achieve a 25% reduction in absolute GHG emissions compared to FY 2020-21
levels. This reduction will be measured against the baseline as the company actively pursues decarbonisation efforts.
Stage IV: Beyond 2030, the company plans to intensify the deployment of emerging technologies and expand its
renewable energy capacities further, with the aim of becoming a net-zero carbon business by FY 2049-50.
Our significant achievements over the recent years include introducing our first low-carbon aluminium products, “Restora”
and “Restora Ultra”, both low-carbon products and a pilot project for producing copper from recycled copper. We are in
process of implementing fuel switching programme, by using biomass in thermal power plants and reducing our carbon
footprint. In FY 2023-24, Vedanta Aluminium has dispatched its first domestic supply of Restora, the nation’s first-ever
low-carbon ‘green’ aluminium, to Global Aluminium Pvt Ltd. As part of the order, the company will supply 300 metric tons
of Restora Billets to Global Aluminium, making it the first domestic customer of what is likely among the most sustainable
products from the domestic primary aluminium industry.
During FY 2023-24, we have implemented the following key initiatives to reduce greenhouse gas emissions:
•
Reduction of met coke consumption per metric ton of slag by ~2% at HZL’s Dariba Smelting Complex, resulting in GHG
emissions reduction of ~32,000 tCO2e.
•
Reduction in the average specific power consumption of zinc melting and casting furnaces at HZL’s Pantnagar plant by
6%, thereby reducing GHG emissions by 4,00,00 tCO2e.
•
Reduction in average specific power norms of silver plant by 5%, resulting in GHG emissions reduction of
~2,00,000 tCO2e.
•
At Cairn’s MBA-block, the conversion of a pump from PF to motor has resulted in GHG reductions of ~50,000 tCO2e.
•
At ESL, in the Waste Heat Recovery system, the insulation of the boiler has resulted in more than 2,01,000 tCO2e of
GHG reduction.
•
At BALCO, the procurement of Renewable Energy has resulted in GHG reduction of more than 2,11,000 tCO2e.
•
At the Value-Added-Business of Sesa Iron Ore, multiple initiatives to enhance the efficiency of the Waste Heat Recover
system has reduced GHG emissions by more than 1,50,000 tCO2e.
9.
Provide details related to waste management by the entity, in the following format:
Parameter
FY 2024
FY 2023
Total Waste generated (in metric tonnes)
Plastic waste (A)
275
372
E-waste (B)
387
141
Bio-medical waste (C)
18
1,297
Construction and demolition waste (D)
1,65,289
-
Battery waste (E)
323
252
Radioactive waste (F)
-
-
Other Hazardous waste. Please specify, if any. (G) (other than above mentioned HW)
5,16,123
5,31,595
Other Non-hazardous waste generated (H). Please specify, if any. (Excluding Plastic
waste, construction waste) (Break-up by composition i.e., by materials relevant to
the sector) – High-Volume-Low-Toxicity Waste, overburden, rock and tailing, other
non‑hazardous waste
6,17,71,811
1,80,98,325
Total (A+B + C + D + E + F + G+ H)
62,454,226
1,86,31,982
Waste intensity per rupee of turnover
(Total waste generated / Revenue from operations)
0.00004345
0.000012814
Waste intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP)
(Total waste generated / Revenue from operations adjusted for PPP)*
0.00097328
0.000287034
Waste intensity in terms of physical output**
7.34
-
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
60,74,201
3,02,20,013
(ii) Re-used
2,19,40,514
-
(iii) Other recovery operations
1,09,09,562
-
Total
3,89,24,277
3,02,20,013
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Parameter
FY 2024
FY 2023
For each category of waste generated, total waste disposed by nature of disposal
method (in metric tonnes)
Category of waste
-
-
(i) Incineration
9,272
282
(ii) Landfilling
1,42,92,264
15,786
(iii) Other disposal operations
2,259
2,10,96,024
Total
1,43,03,795
2,11,12,092
* PPP: INR Revenue X PPP Factor (US$/INR)
PPP Factor = 22.4; World Economic Outlook (April 2024) - Implied PPP conversion rate (imf.org).
** The calculation includes only data related to metal & mining business
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 Mazars Advisory LLP.
10. 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.
Waste management stands as a pivotal focus area, with waste categorised as a significant indicator.
Our waste management framework adheres to the principles of minimisation, optimisation, and circularity, aimed at
reducing waste generation while promoting recycling and recovery processes. This strategic approach not only maximises
benefits but also substantially lowers operational costs by curbing expenses related to raw material consumption, waste
disposal, and energy usage across our operations. Our ultimate objective at Vedanta is to evolve into a 'zero-waste'
organisation. We are actively embracing new technologies in our waste management procedures to eliminate waste
to landfills or incinerators while ensuring alignment with the best industrial practices and relevant legal requirements
governing various waste categories.
The Guidance Notes and Technical Standards on Solid Waste Management delineate comprehensive procedures for waste
identification, classification, segregation, handling, storage, treatment, and disposal, both on-site and off-site, in a safe and
sustainable manner. Our waste storage areas undergo weekly inspections, with meticulous documentation of records.
Action points are identified, tracked, and addressed accordingly.
The Company’s hazardous waste strategy emphasises the safe storage and segregation of hazardous materials to
facilitate recycling where feasible. Storage areas for hazardous waste are required to display detailed information about
the materials stored, including material safety data sheets (MSDSs) and relevant precautions. These areas must feature
appropriate warning signs in English and the local language, be securely locked to prevent unauthorised access, and be
equipped with emergency wash facilities and spill cleanup kits. Access is restricted to only those authorised personnel
who have undergone proper training. Hazardous waste generation is documented using Form 3 and disposed of in
accordance with Hazardous Waste authorisation, either through recycling, co-processing, or other approved methods
handled by State Pollution Control Board authorised vendors, with records maintained via Form 10. Site-specific SOPs are
established for managing Hazardous and Toxic Chemicals. Quarterly hazardous waste management audits are conducted,
with subsequent actions aimed at minimising hazardous waste usage.
At Vedanta, we are committed to leveraging all non-hazardous waste, exemplified by one of our units, TSPL, securing
'Single Use Plastic Free' certification from the Confederation of Indian Industry (CII). Recognising the criticality of
hazardous waste management, we are dedicated to recycling and circularity initiatives, including:
•
Collaboration with organisations and research institutions to develop tailored recycling and reusing options. For
instance, partnering with NHAI to utilise fly ash as construction material, thereby enhancing construction quality and
conserving soil quality in adjacent areas.
•
Incorporating ore-processing wastes like Jarosite and Jarofix into construction material.
•
Undertaking R&D to explore the potential of red mud as an alternative construction material.
•
Achievements in waste utilisation, such as 18.6 million tonnes of HVLT waste utilisation (94% for FY 2023-24),
16.5 million tonnes utilisation for Fly Ash (108%), and reduction of legacy waste from 44.42 million tonnes to
45.62 million tonnes.
•
With the commissioning of Fumer plant, there will be complete elimination of Jarosite generation from one of the
Hydro Zinc Smelter and generated slag will be 100% utilised in cement industries, for effective metal recovery, a second
ancillary plant commissioned for treatment of process residues at Chanderiya Lead-Zinc Smelter; a project to recover
sodium sulphate crystal from RO Reject commissioned at Dariba Zinc Smelter; gainfully utilised waste such as Jarosite,
Jarofix, slag and fly ash in cement manufacturing and road construction, also tailings used in back-filling voids in mines
through Paste fill/Hydrofill.
11. 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
Vedanta Alumnium-Lanjigarh (Lanjigarh, India)
Alumina Refinery
Yes
2
Bokaro Plant (Chhattisgarh)
Steel
Yes
3
Skorpan Zinc (Rosh Pinah, Namibia)
Mining
Yes
4
Black Mountain Mines (Aggeneys, South Africa)
Mining
Yes
5
Black Mountain Mines(Gamsberg, South Africa)
Mining
Yes
12. 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)
Relevant
Web link
Onshore Oil and Gas Development and Production
in AA/ONDSF/HAZARIGAON/2018 Hydrocarbon
Block (30.74 Sq. Km), Golaghat District, Assam
Onshore Oil and Gas Development and Production
in AA/ONDSF/HAZARIGAON/2018 Hydrocarbon
Block (30.74 Sq. Km), Golaghat District, Assam
EC23A002AS110755
-
Yes
No
N.A.
Expansion of lron Ore Mine (ML. No. 2677
(RMI- 2236)) at Megalahalli Village, Chitradurga
Taluk, Chitradurga District.
C23B001KA196226
-
Yes
Yes
13. 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.
However, there was one non-compliance that remained open in FY 2023-24.
S.
No
Specify the law /
regulation / guidelines
which was not
complied with
Provide details
of the non-
compliance
Any fines / penalties / action
taken by regulatory agencies such
as pollution control boards or by
courts
Corrective action taken, if any
1.
Consent and clearance
related
Environment
related clearances
Application is pending before the
authorities for consideration
The company was acquired under Insolvency
and Bankruptcy Code(IBC), consents were
pending at that time. Approvals on the consent
are underway. Plant is operational basis orders
of the Supreme Court. Conditions mentioned in
Forest Clearance-1 are being complied with.
Leadership Indicators
1.
Water withdrawal, consumption and discharge in areas of water stress (in kilolitres):
For each facility / plant located in areas of water stress, provide the following information:
(i)
Name of the area: Hindustan Zinc Ltd (Debari, Chanderiya Lead-Zinc Smelter (CLZS), Dariba Smelting Complex
(DSC), Rajpura Dariba Mine (RDM), Sindesar Khurd Mine (SKM), Rampura Agucha Mine (RAM), Kayad (KYD), Zawar
Mine (ZWM)) and Cairn Oil & Gas (Rajasthan Asset), Iron Ore Karnataka (IOK), Silvassa
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(ii) Nature of operations: Smelting and Mining, Crude Oil and Natural Gas Exploration and Production
(iii) Water withdrawal, consumption and discharge in the following format:
Parameter
FY 2024
(Current
Financial Year)
FY 2023
(Previous
Financial Year)
Water withdrawal by source (in kilolitres)
(i) Surface water
1,36,75,896
14,53,05,251
(ii) Groundwater
1,16,81,572
1,59,29,325
(iii) Third party water
98,19,851
36,02,979
(iv) Seawater / desalinated water
-
-
(v) Others
3,41,25,670
4,57,37,178
Total volume of water withdrawal (in kilolitres)
6,93,02,990
21,05,74,733
Total volume of water consumption (in kilolitres)
6,78,61,111
26,60,01,190
Water intensity per rupee of turnover (Water consumed / turnover)
0.000047215
0.000012814
Water intensity (optional) – the relevant metric may be selected by the entity
Water discharge by destination and level of treatment (in kilolitres)
(i) Into Surface water
-
-
-
No treatment
-
-
-
With treatment – please specify level of treatment
0
-
(ii) Into Groundwater
-
-
-
No treatment
-
-
-
With treatment – please specify level of treatment
0
-
(iii) Into Seawater
-
-
-
No treatment
-
-
-
With treatment – please specify level of treatment
1,615
-
(iv) Sent to third parties
-
-
-
No treatment
-
-
-
With treatment – please specify level of treatment
0
-
(v) Others
-
-
-
No treatment
-
-
-
With treatment – please specify level of treatment
7,17,563
-
Total water discharged (in kilolitres)
7,19,178
-
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 Mazars Advisory LLP.
2.
Please provide details of total Scope 3 emissions & its intensity, in the following format:
Parameter
Unit
FY 2024
Current Financial year
FY 2023
Previous Financial
Year
Total Scope 3 emissions (Break-up of the GHG into CO2, CH4,
N2O, HFCs, PFCs, SF6, NF3, if available)
Metric tonnes of CO2
equivalent
3,45,83,959
3,81,90,000
Total Scope 3 emissions per rupee of turnover
0.00004812
0.002533
Total Scope 3 emission intensity (optional) – the relevant
metric may be selected by the entity
-
-
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
As of 31 May 2024, an independent assurance has not been carried out for Scope 3 numbers. However, the company
intends to have these numbers assured and will report the assured number in FY 2023-24 Sustainability report.
3.
With respect to the ecologically sensitive areas reported at Question 11 of Essential Indicators above, provide details of
significant direct & indirect impact of the entity on biodiversity in such areas along-with prevention and remediation activities.
Significant direct impact on biodiversity
•
Construction activities, along with dust, pollution, and emissions, can directly impact natural ecosystems, leading to
loss and degradation of natural habitats or disruption of wildlife migration and movement patterns. Vehicular traffic
involved in the project poses a direct threat to wildlife, leading to collisions that cause injury or death. Transport
associated with the project can also accidentally introduce invasive plants or animals, which can outcompete native
species and disrupt ecosystem balance.
Significant indirect impact on biodiversity
•
Ecosystem fragmentation - The development of mining infrastructure in the proximity of biodiversity rich areas can
indirectly cause habitat fragmentation - affecting migration patterns of wildlife.
•
Invasive species - The disturbance of land and increased human activity associated with mining can indirectly facilitate
the introduction and spread of invasive species and alter ecosystem dynamics.
•
Changes in land use patterns - Mining activities can indirectly lead to changes in land use. For example, conversion
of agricultural land for mining activities can affect traditional livelihoods - and in case of proximity to forest areas -
potentially displace such activities and lead to deforestation or encroachment.
•
Socio-economic impacts - The presence of mining operations can indirectly lead to population influx - leading to
increased demand for resources and resulting in additional pressure on local ecosystems and biodiversity.
Prevention and remediation activities
Vedanta has taken steps to mitigate the direct and indirect impacts emphasises preventing pollution, strictly regulating
vehicle routes, and minimising environmental disturbances through a comprehensive Environmental Management Plan
(EMP). Vedanta aims at creating net positive results for biodiversity through actions that include restoring soil and water
bodies, removing invasive species, replanting native vegetation, and restoring wildlife habitats and corridors. There is
an additional focus on supporting the conservation of endangered species, awareness campaigns, and community
engagement as a part of its biodiversity management.
4.
If the entity has undertaken any specific initiatives or used innovative technology or solutions to improve resource
efficiency, or reduce impact due to emissions / effluent discharge / waste generated, please provide details of the same
as well as outcome of such initiatives, as per the following format:
Sr.
No
Initiative undertaken
Details of the initiative (Web-link, if any, may be provided along-
with summary)
Outcome of the initiative
1.
Reducing Impact of Effluent
Discharge at ESL Steel Limited
Installation of flow meters and commissioning of STP of 575 KLD
capacity thereby reducing freshwater withdrawal.
Water Conservation
2.
Reducing Impact of Effluent
Discharge at FACOR Power
Plant
The wastewater generated in the power plant gets treated in the
Effluent Treatment Plant (ETP) and reused in industrial processes.
The treated water is used in dust suppression, gardening, road
sprinkling, and other purposes.
Water Conservation
3.
A ETP of Capacity 600 m3/
hr is installed for treatment of
the mines effluent, online and
offline system for monitoring
inlet and outlet water quality at
FACOR mining operations
A ETP of Capacity 600 m3/hr is installed for treatment of the
mines effluent. Treated water is used for dust suppression. Proper
chemical dosing is ensured to maintain the outlet water quality
within the standards set by State Pollution Control Board. Real-
time monitoring of parameters such as pH, TSS and flow is taken
to ensure quality. Additionally, quarterly water quality tests for inlet
and outlet are performed by a NABL-accredited third party.
Water Conservation
4.
Reducing Impact of Effluent
Discharge at Vedanta Iron Ore
Karnataka.
STP installed with MBBR reactor tank with a 30 KLD capacity.
Water Conservation
5.
Improving resource utilisation
at TSPL
Digitisation and analytical tools are used for optimising resource
use.
Resource Conservation
6.
Improving resource utilisation
at ESL Steel Limited
Sinter bed thickness enhancement for improving the efficiency led
to net reduction of 1797 ton of CO2e.
Resource Conservation
7.
Improving resource Utilisation
at FACOR charge chrome plant
The slag skulls and slag metal mixture generated in the handling
yard are fed into the ground hopper of Metal Recovery Plant
with handling capacity of 30 MT per hour. The technology helps
to recover20% of metallics leading to waste minimisation and
increase in production.
Resource Conservation
8.
Improving resource Utilisation
at FACOR COB Plant
The Chrome Ore Beneficiation plant of Capacity 20TPH converts
low grade to high grade ore (i.e.,27-29 % CR2O3 to above 47%
CR2O3) leading to cost savings.
Resource Conservation
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Sr.
No
Initiative undertaken
Details of the initiative (Web-link, if any, may be provided along-
with summary)
Outcome of the initiative
9.
Reducing impact of emission
at ESL Steel Limited
Mist canon and rain guns have been installed for dust suppression. Air Emission Reduction
10.
Reducing impact of emission
at FACOR Charge Chrome
Plant
Bag Filters are installed in the furnaces to filter out flue gas
particles. Filtered gas is released through GCP stacks thereby
leading to reduction in the air emissions.
Air Emission Reduction
11.
STP at Udaipur for HZL
Treated water from 60 MLD STP in Udaipur is being routed to HZL
sites to reduce the dependence on freshwater.
Water conservation
The replacement of fresh
water for operations by STP
treated water has led to
increased availability of fresh
water for the community. 36%
of total water withdrawal was
satisfied with treated sewage.
12.
Dry Tailing Plant at Hindustan
Zinc Ltd. Zawar Mines
Dry Tailing Plant set up to separate water from tailings slurry
generated in the beneficiation process. 80% of the water present in
the tailings is recovered, and tailing and waste rock are repurposed
whether as a backfilling material or to stabilise our underground
mining operations. Remaining tailings are stored in a specialised
facility to minimise the environmental, social and economic risks.
Key benefits of the dry
tailing technology include
recirculation of more than
80% of the process water
present in tailings, a faster
rehabilitation and restoration
of storage site at mine closure
and ensuring re-availability of
water for further use
Water conservation
13.
Agreement for 180 LNG
Vehicles
Signed agreement with Greenline, a subsidiary of Essar Group, to
provide 180 Liquified Natural Gas (LNG) vehicles of which 24 LNG
vehicles have been put to use for transportation of finished goods.
GHG Emission reduction
14.
Jarofix Yard Restoration
The Company used Mycorrhisa technology for rejuvenation and
reclamation of wasteland into productive land by increasing the
green cover, enhancing biodiversity and control fugitive dust
emission and restoring site. It also makes plants less vulnerable to
environmental stresses and by optimum use of water resources
Biodiversity Conservation
15.
Advanced control opportunity
for grinding and flotation
circuit at Rampura Agucha
and SK Mines of Hindustan
Zin Ltd.
To address the difficulty in flotation process,, Advance Process
Control (APC) system was introduced to maintain a ptimising
circuit operation while ptimising the process performance to
maximise recovery. Three APCs were implemented for grinding
and flotation operation (lead and zinc) in mills at Rampura Agucha
and SK Mines.
Material recovery
16.
EV trucks for Interunit
transport at Hindustan
Zinc Ltd.
Signed contract with Inland EV Green Services Pvt Ltd. to deploy
10 Electric Vehicles (EV) Trucks, each boasting a capacity of 55
metric tons.
GHG Emission Reduction
5.
Does the entity have a business continuity and disaster management plan? Give details in 100 words/ web link.
Vedanta has a business continuity plan aimed at safeguarding the well-being of its personnel during emergencies.
This plan includes various measures, such as conducting an Emergency Response and Crisis Plan Gap Assessment
study across all sites, to identify and address potential vulnerabilities. Additionally, the adoption of the ISO 22301:2019
Disaster Recovery and Business Continuity Management Framework, Vedanta has strengthened its operations against
potential interruptions, demonstrating its a commitment to operational resilience. The alignment of internal IT processes
with these standards reflects Vedanta's proactive approach to risk management. Within its Risk Management Policy,
Vedanta has integrated comprehensive Business Continuity Plan that addresses both internal and external risks, including
encompassing financial, operational, sustainability, information, and cybersecurity risks. To mitigate these risks, the
company has mitigation plans and conducts annual reviews to ensure their effectiveness and adaptability in maintaining
business continuity.
6.
Disclose any significant adverse impact to the environment, arising from the value chain of the entity. What mitigation
or adaptation measures have been taken by the entity in this regard.
There is no significant adverse impact to the environment based on an assessment of our tier-1 suppliers, barring one
case from FY 2021-22 that is not deemed material. We have engaged with our tier-1 supplier and sought an update from
them regarding corrective actions taken.
7.
Percentage of value chain partners (by value of business done with such partners) that were assessed for
environmental impacts.
In FY 2023-24, we have assessed 30% of tier 1 suppliers were assessed for environmental impacts.
PRINCIPLE 7
Businesses, when engaging in influencing public
and regulatory policy, should do so in a manner
that is responsible and transparent.
Essential Indicators
1.
a.
Number of affiliations with trade and industry chambers/ associations: 32
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
Name of the trade and industry chambers/ associations
Reach of trade and industry chambers/
associations (State/National)
1.
Aluminium Association of India (AAI)
National
2.
Association of Oil and Gas Operators
National
3.
Association of Power Producers
National
4.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
National
5.
Coal Consumers Association of India
National
6.
Confederation of Indian Industry (CII)
National
7.
Employers’ association of Rajasthan
State
8.
Federation of Indian Chambers of Commerce and Industry (FICCI)
National
9.
Federation of Indian Mineral Industry (FIMI)
National
10.
Federation of Indian Petroleum Industry (FIPI)
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 zero cases related to anti-competitive conduct by Vedanta or its associated subsidiaries, joint ventures.
Leadership Indicators
1.
Details of public policy positions advocated by the entity:
S.
No.
Public Policy Advocated
Method resorted for such advocacy
Whether
information
available in
public domain?
(Yes/No)
Frequency of review
by Board (Annually/
Half yearly/Quarterly/
Others), please
specify
Web Link, if available
1
Sustainable Mining
Practices
Vedanta advocates for the promotion
of sustainable mining practices through
industry associations and federations
such as Federation of Indian Metal
Industries(FIMI). Its Business Unit,
Hindustan Zinc Ltd. is a member of FIMI's
Sustainable Mining Initiative and has
supported several initiatives to promote
sector level climate action.
Yes
Quarterly
https://www.hzlindia.
com/sustainability-
management/pdf/
Sustainable_Mining.
pdf
2
Mineral Exploration
Vedanta advocated to resolve complexities
involved in the exploration of deep-seated
base metals through National level Industry
Associations, geological conferences and
media advocacy.
No
Quarterly
N/A
UN SDG mapped:
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PRINCIPLE 8
Businesses should promote
inclusive growth and equitable
development.
S.
No.
Public Policy Advocated
Method resorted for such advocacy
Whether
information
available in
public domain?
(Yes/No)
Frequency of review
by Board (Annually/
Half yearly/Quarterly/
Others), please
specify
Web Link, if available
3
Copper Raw Materials
Security
Representations sent through Industry
Associations, Participation in Industry
Platforms (Conferences/Meetings), Media
Advocacy, Stakeholder Engagement via
various Ministries, Consultations with
Ministries on prevailing and upcoming FTAs
No
Quarterly
NA
4
Enhance Availability and&
Increase investments in
Oil & Gas Sector as well as
base metals (pb, Zn, Ag, Fe
etc.). doing business
Area Relaxation for
The matter has been considered for
advocacy through state mines department
as well as Industry Association for benefit
of companies for the to enhancement of
production, thereby reducing imports.
No
Quarterly
NA
5
Tariff determination from
Renewable Energy Sources
Vedanta submitted representations through
Industry association to determine solar
tariff.
Yes
NA
https://rerc.rajasthan.
gov.in/rerc-user-files/
office-orders
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)
Relevant
Web link
SK Village R&R as
per LARR act 2013
G.N. संख्या
प.12/17 ( )
राजस्व/ भू.
अ./2023
25/04/23
Yes by agency headed
by Dr. Alpana Kateja,
Professor, Department of
Economics, University of
Rajasthan, Jaipur.
No, only notification is communicated in
public domain- (https://reams.rajasthan.gov.
in/PrintingStationary) The final number of
projected affected families shall be identified
accurately by the administration; hence report
is yet to be finalised
-
UN SDG mapped:
2.
Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your
entity, in the following format:
S.
No.
Name of
Project for
which R&R is
ongoing
State
District
No. of Project
Affected
Families (PAFs)
% of PAFs
covered by
R&R
Amounts paid to PAFs in the FY
(In `)
1
Vedanta
Aluminium
-Lanjigarh
Odisha
Kalahandi
261
100%
Total commitment = ` 137.72 crore.
•
Land Payments: ` 40.28 crore: Already
done
•
New RR Colony Construction:
` 54.28 crore: Ongoing
•
R&R Package: ` 31.58 crore: Ongoing
•
R&R Sustenance allowances and
Trainees Stipends: ` 7.02 crore: Ongoing
•
Skill development training cost:
` 4.56 crore: Ongoing
2
SK Village
R&R under
Land
Acquisition,
Rehabilitation
and
Resettlement
Act 2013
Rajasthan Rajsamand 325 families
(Estimated)
As per Gazette
Notification and
228 families
(*including 168
nuclear and 60
joint families) as
per SIA report by
Dr. Alpana Kateja
The final number of
projected affected families
shall be identified accurately
by the administration after
undertaking a detailed survey
of the population and final
number of families to be
shifted and compensated
shall also be finalised basis
the same only.
Not decided as yet.
3.
Describe the mechanisms to receive and redress grievances of the community.
Vedanta’s technical standard details the mechanism for grievance redressal from external stakeholders including
communities. Concerns raised from the communities are primarily received and addressed at site level to ensure an ease
of accessibility and transparency. During the engagement process conducted by the Company, the Community Liaison
Officer (CLO) communicate the grievance mechanism. The redressal procedure follows a seven-step approach i.e.,
Receive, Acknowledge, Assess and Assign, Investigate, Respond, Resolve/Recourse and Close-out.
A grievance box is kept outside the plant's main gate, allowing stakeholders to submit written grievances in the local
language. Every effort is made to resolve reported grievances at the initial stage, directly between the complainant and the
Company. All complaints are acknowledged within 24 hours or a maximum of two business days, with updates provided
every 30 days. Complaints are then forwarded to relevant departments for investigation, where the validity is verified,
causes are identified, and corrective actions are developed to prevent recurrence. The CLO provides responses to raised
complaints and ensures discussions with the concerned parties. A Resolution Form is signed by the complainant, outlining
agreed-upon actions and their completion timeline.
However, if the Company fails to deliver any resolution for whatsoever reason, an approach to a second order is taken and
a third-party mediator is engaged with the due consent of the complainant. If the second order mechanism does not yield
resolution, the last resort is engaging legally with a court protocol, which can be initiated by either party. Complaints and
grievances escalated to the third order mechanism are beyond Vedanta’s control of Vedanta and have no time limit due to
lack of the company’s control over the resolution process.
Each Vedanta Business Units maintains a record of all complaints and grievances received to assess nature, analyze any
patterns, identify training needs and for further references.
4.
Percentage of input material (inputs to total inputs by value) sourced from suppliers:
FY 2024*
FY 2023
Directly sourced from MSMEs/ small producers
7%
10%
Sourced directly from within India
68%
49%
* Includes tier-1 suppliers
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5.
Job creation in smaller towns – Disclose wages paid to persons employed (including employees or workers employed
on a permanent or non-permanent / on contract basis) in the following locations, as % of total wage cost.
Location
FY 2024
Current Financial Year*
FY 2023
Previous Financial Year
Rural
34.7%
Data not collected
Semi-Urban
1.4%
Data not collected
Urban
56.7%
Data not collected
Metropolitan
7.03%
Data not collected
* Data from Vedanta Zinc International, and Fujairah Gold have not been included in this calculation because these businesses are located
outside India. This number is only reported for permanent employees and permanent workers, as the data collection with respect to job
creation for other than permanent employees and workers is not feasible
Leadership Indicators
1.
Provide details of actions taken to mitigate any negative social impacts identified in the Social Impact Assessments
(Reference: Question 1 of Essential Indicators above):
Details of negative social impact identified
Corrective action taken
Not applicable, as SIA conducted at Hindustan Zinc Limited is yet to be finalised by district authorities.
2.
Provide the following information on CSR projects undertaken by your entity in designated aspirational districts as
identified by government bodies:
S. No. State
Aspirational District
Amount Spent (in `)
1
Jharkhand
Bokaro
5,01,22,111
2
Chhattisgarh
Korba
16,36,69,619.00
3
Odisha
Kalahandi
56,26,07,481
4
Rajasthan
Baran
75,00,000
5
Odisha
Rayagada
56,88,000
6
Odisha
Dhenkanal
18,00,000
7
Odisha
Koraput
21,60,000
8
Uttarakhand
Udham Singh Nagar
1,33,86,800
Total India
80,69,34,012
3.
(a) Do you have a preferential procurement policy where you give preference to purchase from suppliers comprising
marginalised /vulnerable groups? (Yes/No)
Yes, Vedanta does have a preferential procurement policy in place to prioritise purchasing goods and services from
suppliers belonging to marginalised or vulnerable groups This policy aims to promote economic empowerment and
inclusion by providing opportunities for historically disadvantaged businesses or individuals. By actively engaging
with suppliers from marginalised communities, we contribute to addressing social inequalities and fostering
sustainable development.
(b) From which marginalised /vulnerable groups do you procure?
As part of Vedanta’s commitment to increase local procurement, preferential procurement policies have been
implemented at Cairn India, TSPL, and FACOR. We have collaborated with numerous marginalised and women groups
such as micro-vendors and women self-help-groups at Cairn’s Ravva operations.
(c) What percentage of total procurement (by value) does it constitute?
Less than 0.01% of the total procurement spend constitutes procurement from marginalised/vulnerable groups.
4.
Details of the benefits derived and shared from the intellectual properties owned or acquired by your entity (in the
current financial year), based on traditional knowledge:
S.
No.
Intellectual Property based
on traditional knowledge
Owned/ Acquired
(Yes/No)
Benefit shared
(Yes / No)
Basis of calculating
benefit share
Not Applicable to Vedanta
5.
Details of corrective actions taken or underway, based on any adverse order in intellectual property.
Name of Authority
Brief of the case
Corrective action taken
Not Applicable to Vedanta
6.
Details of beneficiaries of CSR Projects:
In the below table we have showcased our key significant CSR projects,
At Vedanta we have more than 200 CSR projects. Some of the key projects are mentioned below-
S. No. CSR Projects
No. of persons
benefitted from CSR
Projects
%of beneficiaries
from vulnerable and
marginalised groups
1
Aarogya
7,540
100%
2
Nand Ghar: Women Empowerment and Community Development
4,39,861
100%
3
Swajal: Environment Community Development
18,075
100%
4
Mobile Health Unit
8,430
58%
5
Restoration of community ponds
7,920
60%
6
Drinking water projects
1,05,675
65%
7
Off grid Electricity Solutions
14,500
100%
8
Unnati
5,590
100%
9
Swajal: Environment Community Development
18,075
100%
10
Nirman: Community Development
3,200
100%
PRINCIPLE 9
Businesses should engage with and
provide value to their consumers in a
responsible manner.
Essential Indicators
1.
Describe the mechanisms in place to receive and respond to consumer complaints and feedback.
Vedanta maintains a Technical Standard for Grievance Mechanisms, which outlines the procedures for addressing
concerns raised by external stakeholders, including customers. Additionally, we offer the "Vedanta Metal Bazaar" portal
(https://www.vedantalimited.com/eng/customers.php) providing customers with a platform to voice their concerns and
file complaints. Upon submission, relevant teams are notified via email, and our team conducts a Root Cause Analysis
(RCA), implementing appropriate actions for resolution. Customers are granted access to track their complaints and
provide consent for closure.
Furthermore, Vedanta proactively identifies any potential gaps in customer experience through satisfaction surveys and
regular meetings. Swift actions are then taken to rectify these issues and ensure customer satisfaction.
To enhance accessibility, our contact information, including address and telephone numbers, is prominently displayed on
the Company website (available at https://www.vedantalimited.com/eng/investor-relations-contact.php and https://www.
vedantalimited.com/eng/contact.php). All feedback and inputs received are recorded, along with closure details, for future
training and reference purposes.
UN SDG mapped:
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2.
Turnover of products and/ services as a percentage of turnover from all products/service that carry information about:
As a percentage to total turnover
Environmental and social parameters relevant to the product
28.5%
Safe and responsible usage
24%
Recycling and/or safe disposal
3.75%
3.
Number of consumer complaints in respect of the following:
FY 2024
Remarks
FY 2023*
Remarks
Received
during the
year
Pending
resolution at
end of year
Received
during the
year
Pending
resolution at
end of year
Data privacy
0
0
-
0
0
No Complaints
received
Advertising
0
0
No Complaints
received
-
-
-
Cyber-security
0
0
No Complaints
received
0
0
No Complaints
received
Delivery of essential services
0
0
No Complaints
received
-
-
-
Restrictive Trade Practices
0
0
No Complaints
received
-
-
-
Unfair Trade Practices
0
0
No Complaints
received
-
-
-
Other
300
21
-
-
-
-
4.
Details of instances of product recalls on account of safety issues:
Number
Reasons for recall
Voluntary Recalls
0
NA
Forced Recalls
0
NA
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’s comprehensive Information Security Management Framework outlined in IT Disclosure Cybersecurity 2022.
pdf (vedantalimited.com) on our website. This framework comprises policies, Standard Operating Procedures (SOP), and
technology standards. Annually, Vedanta's information security team evaluates and updates this framework. Cybersecurity
is identified as a principal risk within the overall enterprise risk management framework, with potential implications for
people, the environment, the community, and operational performance. Oversight of cybersecurity governance falls under
the purview of the Board Committee-Audit and Risk Committee, led by the Group Chief Information Officer (CIO), who is
tasked with defining the cybersecurity vision, strategy, and program execution to ensure data protection.
The Company's information security framework is informed by several key factors:
•
Internationally recognised Information Security Management Frameworks and Standards
•
Relevant regulatory requirements
•
Risk assessment and control matrices established within the risk management process
•
Alignment of information security objectives with business objectives
•
Incorporation of prevailing best practices
•
Utilisation of Security Threat Intelligence
Information security operations at Vedanta encompass various processes, including:
•
Vulnerability management
•
Information security administration
•
Incident management and response, covering both Cyber and Data Incidents
•
Disaster recovery and business continuity planning.
Vedanta's Business Units are ISO Certified Organisations and have implemented an integrated management system (IMS)
aligned with International Standards ISO 27001:2013, ISO 22301:2019, and ISO 31000:2018. They continuously strive to
uphold and enhance this system.
To report any suspicious activity related to information security, e-mails need to be sent to gc@vedanta.co.in. All
reports undergo investigation by the Chief Information Security Officer(CISO), and appropriate measures are undertaken
accordingly to address them.
Furthermore, all new joiners are required to participate in cybersecurity training upon onboarding, and annual training
sessions covering IT risks, data protection policies and practices, are provided to all employees. Business units also
perform dip-stick assessments to assess users' awareness levels through periodic tests and quizzes. Communications
within the organisation are adjusted based on the effectiveness of these assessments and targeted training initiatives.
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.
Vedanta takes all the issues related customer satisfaction very seriously. We take corrective actions as per the severity of
the matter. Details on corrective actions taken are given below:
Corrective actions regarding delivery of essential services:
•
Quality control procedures were enhanced with more checkpoints to address complaints and improve cleanliness of
the facilities.
•
GPS is being implemented for all inbound and outbound movements, along with automatic email alerts in case
of delays.
Corrective actions against Data Privacy issues:
•
Training on cybersecurity measures and its importance to 100% of the employees to reduce further incidents.
7.
Provide the following information relating to data breaches:
a.
Number of instances of data breaches: 0
b.
Percentage of data breaches involving personally identifiable information of customers: Not Applicable
c.
Impact, if any, of the data breaches: Not Applicable
Leadership Indicators
1.
Channels / platforms where information on products and services of the entity can be accessed (provide web link, if
available).
All the customers are provided with the Material Safety Data Sheet (MSDS), Restriction of Hazardous Substances Directive
(ROHS) declaration, Environmental Product Declaration (EPD) declaration and other required documents. For Information
on the product and Business Units can be accessed from the company’s website: https://www.vedantalimited.com/eng/
businesses-overview.php and metal bazar: https://vedantametalbazaar.com/
Additionally, the company uses multi-modal means of communication, such as: e-mail, webinars, phone, on-line platroms
to connect with their customers and providing information related to its products and services.
2.
Steps taken to inform and educate consumers about safe and responsible usage of products and/or services.
We provide our customers a Material Safety Data Sheet (MSDS) on request. This sheet contains all the relevant
information about the product and its usages. For instance:
At Cairn: MSDS is shared with Cairn’s buyers during sales agreement, which is also available online on Cairn’s website.
Registration Evaluation, Authorisation and Restriction of Chemicals (REACH), Restriction of Hazardous Substances
Directive (ROHS) declaration, Environmental Product Declaration (EPD) declaration and other required documents are also
shared. We continuously engage with the customers to ensure safe and responsible usage of our products.
At HZL: The business unit continuously engage with the customers to ensure safe and responsible usage of our products.
It conducts studies on its product applications in various sectors to produce value added products and improved services
for the relevant customers.
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APPENDIX TO SECTION – A QUESTION 13
S.No.
Entities and Sites Included
Status
1
Vedanta Limited
The Company
Iron Ore Odisha
Site
Value Added Business
Site
Karnataka Iron Ore Mines (IOK)
Site
Iron Ore Goa (IOG)
Site
Sesa Coke Vazare (SMCV)
Site
Sterlite Copper – Silvassa
Site
Sterlite copper- Tuticorin
Site
Vedanta Aluminium limited - Jharsuguda
Site
Vedanta Aluminium limited -Lanjigarh
Site
Cairn oil & gas -RJ-North (Mangla, Bhagyam, Aishwarya)
Site
Cairn oil & gas -RJ South
Site
Cairn oil & gas -RJ-North (Midstream)
Cairn oil & gas- Ravva
Site
Cairn oil & gas- Suvali
Site
Cairn oil & gas- Jaya, Cambay
Site
Cairn oil & gas- Assam operations
Site
2
Hindustan Zinc Limited (HZL)
Subsidiary of the Company
Rampura Agucha Mine
Site
Zawar Mines
Site
Rajpura Dariba Mine (RDM)
Site
Sindesar Khurd Mine (SKM)
Site
Dariba Smelter Complex (DSC)
Site
Chanderia Smelters
Site
Kayad Mines
Site
Debari
Site
Pantnagar
Site
3
Cairn Energy Hydrocarbons Ltd
Subsidiary of the Company
4
ESL Steels Limited
Subsidiary of the Company
ESL Plant, Bokaro
Site
5
Ferro Alloy Corporation Limited (FACOR)
Subsidiary of the Company
FACOR CCP & Power plant, Bhadrak
Site
Ostapal mines
Site
Kalaringita mines
Site
6
Bharat Aluminium Company Limited (BALCO)
Subsidiary of the Company
Smelters and Power plants,Korba
Site
Chotia Mines
Site
7
MALCO Energy Limited (MEL)
Subsidiary of the Company
Nicomet, Goa
Site
Sesa Coke, Gujarat
Site
8
Vizag General Cargo Berth Private Limited
Subsidiary of the Company
VGCB Port Facility
Site
9
Talwandi Sabo Power Limited
Subsidiary of the Company
Power plant-Mansa
Site
10
Black Mountain Mining (Pty) Limited
Subsidiary of the Company
Vedanta Zinc International - Gamsberg
Site
Vedanta Zinc International – Black Mountain Mines
Site
11
Fujairah Gold FZE
Subsidiary of the Company
Fujairah Gold, UAE
Site
3.
Mechanisms in place to inform consumers of any risk of disruption/discontinuation of essential services.
We communicate via email to our internal customers regarding any issues arising from breakdowns or low productivity.
Further quality-related variations are also reported in advance to the customers so that they can make alternative
contingency plans.
Our contracts include a force majeure clause, enabling both Vedanta and our Customers to exercise their rights in events
beyond either party’s control.
4.
Does the entity display product information on the product over and above what is mandated as per local laws?
(Yes/No/Not Applicable) If yes, provide details in brief.Did your entity carry out any survey with regard to consumer
satisfaction relating to the major products / services of the entity, significant locations of operation of the entity or the
entity as a whole? (Yes/No)
With respect to products manufactured by Vedanta Limited, there is no Indian regulatory mandate to display any product
information thereon, Hence, this requirement is not applicable.
However, for some of our products we may follow specific country guidelines for the labelling specifications. Each
business as part of their routine customer engagements, seek feedback. These surveys check for satisfaction on several
parameters such as product quality, packaging, delivery efficiency, contracting processes, and complaint handling.
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INDEPENDENT AUDITOR’S REASONABLE ASSURANCE
REPORT ON IDENTIFIED SUSTAINABILITY INFORMATION
IN VEDANTA LIMITED’S BUSINESS RESPONSIBILITY AND
SUSTAINABILITY REPORT (BRSR CORE)
To the Board of Directors of Vedanta Limited
We have undertaken to perform a reasonable assurance
engagement for Vedanta Limited (the ‘Company’), its Legal
Entities and their Sites (the ‘Group’), the details of which
are as described in the “Scope, Boundary and Limitations”
paragraph given below, vide agreement dated 09 January
2024 in respect of the agreed Sustainability Information
listed below in accordance with the “Criteria” stated below.
This Sustainability Information is as included in the Business
Responsibility and Sustainability Report (‘BRSR’) of the
Group for the year ended 31 March 2024. This engagement
was conducted by a multidisciplinary team, including
professionals with suitable skills and experience in auditing
environmental, social, and economic information (Chartered
Accountants, Company Secretary, Lawyer, Engineers and
Environment Professionals).
Identified Sustainability Information
The Identified Sustainability Information for the year ended
31 March 2024 is summarized below:
The Identified Sustainability Information of the Group are the
nine Key Performance Indicators out of BRSR of the Group
for the year ended 31 March 2024 (‘BRSR Core’).
Our reasonable assurance engagement was with respect
to the year ended 31 March 2024 information only unless
otherwise stated and we have not performed any procedures
with respect to earlier periods and, therefore, do not
express any opinion thereon. We have also issued a Limited
Assurance Report on rest of the elements included in BRSR
of the Group, vide our report dated 17 June 2024.
Criteria
The Criteria used by the Group to prepare the BRSR Core is
summarized below:
The Group prepared the BRSR Core based on the
requirements of:
•
Regulation 34(2)(f) of the Securities and Exchange Board
of India (the “SEBI”) (Listing Obligations and Disclosure
Requirements Regulations, 2015 (as amended);
•
Annexure I of SEBI’s Circular no. SEBI/HO/CFD/CFD-SEC-
2/P/CIR/2023/122, dated 12 July 2023, (prescribing the
format of BRSR Core);
•
Annexure II of SEBI’s Circular no. SEBI/HO/CFD/CFD-SEC-
2/P/CIR/2023/122, dated 12 July 2023, (prescribing the
format of BRSR (Revised), including BRSR Core);
•
Annexure II of the SEBI’s Circular no. SEBI/HO/CFD/CMD-
2/P/CIR/2021/562, dated 10 May 2021, (the Guidance
Note for the pre-revised BRSR Format); and
•
Nine Principles of the National Guidelines on Responsible
Business Conduct, 2019 (‘NGRBC Guidelines’), issued by
the Ministry of Corporate Affairs (‘MCA’).
Management’s Responsibilities
The Group’s management is responsible for establishing
the “Criteria” for preparing BRSR Core, taking into account
applicable Laws and Regulations, if any, related to reporting
on BRSR Core, identification of key aspects, engagement with
stakeholders, content, preparation and presentation of BRSR
Core in accordance with the “Criteria”. This responsibility
includes design, implementation and maintenance of internal
controls relevant to the preparation of BRSR, including BRSR
Core and the measurement of BRSR Core, which is free from
material misstatement, whether due to fraud or error.
Inherent limitations
The absence of a significant body of established practice
on which to draw to evaluate and measure non-financial
information allows for different, but acceptable, measures
and measurement techniques and can affect comparability
between entities.
Our Independence and Quality Control
We have complied with the independence and other
ethical requirements of the International Code of Ethics
for Professional Accountants (including International
Independence Standards) issued by the International Ethics
Standards Board for Accountants (‘IESBA Code’), which is
founded on fundamental principles of integrity, objectivity,
professional competence, and due care, confidentiality, and
professional behavior.
Our firm applies International Standard on Quality
Management (‘ISQM’) 1, “Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or
Other Assurance or Related Services Engagements” and
accordingly maintains a comprehensive system of quality
management, including documented policies and procedures
regarding compliance with ethical requirements, professional
standards, and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a reasonable assurance
opinion on BRSR Core with respect to the Entities/ Sites
covered in the “Scope, Boundary, and Limitations” paragraph
given below, based on the procedures we have performed
and evidence we have obtained.
We conducted our engagement in accordance with the
International Standard on Assurance Engagements (‘ISAE’)
3000 (Revised), “Assurance Engagements other than Audits
or Reviews of Historical Financial Information”, issued by the
International Auditing and Assurance Standards Board. This
standard requires that we plan and perform our engagement
to obtain reasonable assurance about whether BRSR Core
are prepared, in all material respects, in accordance with the
Reporting “Criteria”. A reasonable assurance engagement
involves assessing the risks of material misstatement of
BRSR Core whether due to fraud or error, responding to the
assessed risks as necessary in the circumstances.
We also followed the data and assurance approach provided
under Annexure I of SEBI’s Circular no. SEBI/HO/CFD/CFD-
SEC-2/P/CIR/2023/122, dated 12 July 2023, prescribing the
format of BRSR Core.
Scope, Boundary and Limitations
Scope and Boundary
•
The scope of our reasonable assurance covers BRSR Core
for the period 1 April 2023 to 31 March 2024.
•
Out of the boundary used for the preparation of the
audited Consolidated Financial Statements of the Group
for the Financial Year 2023-24, the boundary used for
the purpose of preparation of BRSR Core includes the
data and the information of the Group, as mentioned in
point no. 13 of Section A: General Disclosures of BRSR of
the Group for the Financial Year 2023-24. The following
categories of Entities/Sites are not considered for the
purpose of preparation of BRSR Core:
– newly incorporated Entities or Entities/Sites operational
for less than 12 months;
– non-operational/ intermittent operational Entities/Sites;
and
– Entities/Sites discontinued or outsourced.
Rest of the Entities/Sites considered for the preparation of
BRSR Core are as per the management’s assessment of
materiality, the details of which are given in the Appendix
to this Report.
•
The data review and validation of these Entities/ Sites was
performed through physical site visits and/or together
with desktop reviews.
Limitations
Our reasonable assurance scope excludes the following and
therefore we do not express an opinion on the same:
•
Operations of the Group other than those covered in the
“Scope and Boundary”.
•
Aspects of BRSR and the data/information (qualitative or
quantitative) other than BRSR Core.
•
Data and information outside the defined reporting period
i.e., Financial Year 2023-24.
•
The statements that describe expression of opinion, belief,
aspiration, expectation, aim, or future intentions provided
by the Group.
•
Data related to Group’s financial performance, strategy
and other related linkages expressed in the Group’s
Integrated Report and Annual Accounts FY 2023-24 or any
other Report, containing BRSR Core.
•
Effectiveness of management’s internal controls of the
Group, while we considered the same when determining
the nature and extent of our procedures; however, our
reasonable assurance engagement was not designed to
provide assurance on these internal controls.
•
The Group’s compliance with Acts, Regulations and
Guidelines, other than those as specified in BRSR Core.
•
The GHG footprint, Water footprint, Energy footprint and
details of the Waste Management with respect to the
following, based on management’s assessment of being
immaterial to the Group’s reporting:
– The Corporate Offices with respect to the Entities as
mentioned in the “Scope and Boundary”.
– Guesthouses and Colonies being owned and
maintained by the Group.
Assurance Procedures
The procedures we performed were based on our
professional judgment and included inquiries, observation of
processes performed, inspection of documents, evaluating
the appropriateness of quantification methods and reporting
policies, analytical procedures and agreeing or reconciling
with underlying records.
Given the circumstances of the engagement, in performing
the procedures listed above, we:
•
Obtained an understanding of the Group’s business
activities, processes and its operating locations, as
identified by the Group.
•
Interviewed people involved to understand the reporting
process, governance, data management systems and
controls in place during the reporting period.
•
Performed substantive testing on a sample basis of BRSR
Core for the Entities/ Sites, as covered in the “Scope,
Boundary and Limitations” to verify whether the data was
appropriately recorded, collated, measured and reported
with underlying supporting documents.
•
Checked the consolidation for the Entities/ Sites as
covered in the “Scope, Boundary and Limitations” for
ensuring the completeness of data being reported.
•
Assessed the level of adherence of the “Criteria”, as
mentioned above by the Group while reporting.
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•
Verified the financial numbers, which are also used
for BRSR Core from the Integrated Report and Annual
Accounts FY 2023-24.
•
Assessed the appropriateness of various assumptions,
estimations and thresholds used by the Group in the
preparation of BRSR Core.
•
Undertook analytical review procedures to support the
reasonableness of the data used in BRSR Core.
•
Obtained written representations from
Group’s Management.
Opinion
Based on the procedures we have performed and the
evidence we have obtained, BRSR Core for the year ended
31 March 2024 are prepared in all material respects, in
accordance with the “Criteria”.
Emphasis of Matter
We draw your attention to the following matters:
•
The “Scope, Boundary and Limitations” in this report and
the boundary, as mentioned in point no. 13 of Section
A: General Disclosures of BRSR. These Entities/ Sites
are considered for the reporting in BRSR as per the
management’s assessment of materiality.
•
The financial numbers used in some of the indicators
of the BRSR Core are extracted from the Integrated
Report and Annual Accounts FY 2023-24 and hence are
not audited by us. While the financial numbers related
to certain entities include inter-company consolidation
adjustments as per the applicable financial reporting
framework (net figures), the non-financial data used in
some of the indicators of the BRSR Core related to these
entities are given without adjustments (gross figures).
Further, some of the Entities/ Sites are considered for the
purpose of said financial numbers, which may have been
excluded from the “Scope, Boundary and Limitations”.
•
Some of the entities are considered for the purpose
of preparation of the BRSR Core on full consolidation
method, without adjusting for minority interest in the
relevant group entity, based on operational control, as
assessed by the management.
•
The Non-Financial Reporting System used by the Group in
the preparation of BRSR Core is in the advanced stage of
implementation and is in the process of being integrated
with other Financial and Non-Financial Reporting Systems
of the Group.
•
For the purpose of reporting under Principle 1.9 (Essential
Indicator) of BRSR with respect to ‘number of trading
houses where purchases are made from’ and ‘number of
dealers and distributors to whom sales are made’, the data
provided includes some duplicate numbers. The Company
is in the process of setting up the mechanism to capture
the required data going forward.
•
For the purpose of reporting under Principle 3.1(c)
(Essential Indicator) of BRSR with respect to ‘spending on
measures towards well-being of employees’, the data for
other than permanent workers have not been considered
due to non-availability of information. The Company is in
the process of setting up the mechanism to capture the
required data going forward.
•
For the purpose of reporting under Principle 8.5 (Essential
Indicator) of BRSR with respect to ‘Job creation in smaller
towns’, the data for other than permanent employees and
other than permanent workers have not been considered
due to non-availability of information. The Company is in
the process of setting up the mechanism to capture the
required data going forward.
Our opinion is not modified in respect of these matters.
For Mazars Advisory LLP
Firm Registration No.: AAI-2887
Sarika Gosain
Partner
Gurugram
17 June 2024
Appendix to the Independent Auditor’s Reasonable Assurance Report on Identified Sustainability
Information in Vedanta Limited’s Business Responsibility and Sustainability Report (BRSR Core)
S.No.
Entities and Sites Included
Status
1
Vedanta Limited
The Company
Iron Ore Odisha
Site
Value Added Business
Site
Karnataka Iron Ore Mines (IOK)
Site
Iron Ore Goa (IOG)
Site
Sesa Coke Vazare (SMCV)
Site
Sterlite Copper – Silvassa
Site
Sterlite copper- Tuticorin
Site
Vedanta Aluminium limited - Jharsuguda
Site
Vedanta Aluminium limited -Lanjigarh
Site
Cairn oil & gas -RJ-North (Mangla, Bhagyam, Aishwarya)
Site
Cairn oil & gas -RJ South
Site
Cairn oil & gas -RJ-North (Midstream)
Cairn oil & gas- Ravva
Site
Cairn oil & gas- Suvali
Site
Cairn oil & gas- Jaya, Cambay
Site
Cairn oil & gas- Assam operations
Site
2
Hindustan Zinc Limited (HZL)
Subsidiary of the Company
Rampura Agucha Mine
Site
Zawar Mines
Site
Rajpura Dariba Mine (RDM)
Site
Sindesar Khurd Mine (SKM)
Site
Dariba Smelter Complex (DSC)
Site
Chanderia Smelters
Site
Kayad Mines
Site
Debari
Site
Pantnagar
Site
3
Cairn Energy Hydrocarbons Ltd
Subsidiary of the Company
4
ESL Steels Limited
Subsidiary of the Company
ESL Plant, Bokaro
Site
5
Ferro Alloy Corporation Limited (FACOR)
Subsidiary of the Company
FACOR CCP & Power plant, Bhadrak
Site
Ostapal mines
Site
Kalaringita mines
Site
6
Bharat Aluminium Company Limited (BALCO)
Subsidiary of the Company
Smelters and Power plants,Korba
Site
Chotia Mines
Site
7
MALCO Energy Limited (MEL)
Subsidiary of the Company
Nicomet, Goa
Site
Sesa Coke, Gujarat
Site
8
Vizag General Cargo Berth Private Limited
Subsidiary of the Company
VGCB Port Facility
Site
9
Talwandi Sabo Power Limited
Subsidiary of the Company
Power plant-Mansa
Site
10
Black Mountain Mining (Pty) Limited
Subsidiary of the Company
Vedanta Zinc International - Gamsberg
Site
Vedanta Zinc International – Black Mountain Mines
Site
11
Fujairah Gold FZE
Subsidiary of the Company
Fujairah Gold, UAE
Site
378
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
379
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT
ON IDENTIFIED SUSTAINABILITY INFORMATION IN VEDANTA
LIMITED’S BUSINESS RESPONSIBILITY AND SUSTAINABILITY
REPORT (INDICATORS OTHER THAN BRSR CORE)
To the Board of Directors of Vedanta Limited
We have undertaken to perform a limited assurance
engagement for Vedanta Limited (the ‘Company’), its Legal
Entities and their Sites (the ‘Group’), the details of which
are as described in the “Scope, Boundary and Limitations”
paragraph given below, vide agreement dated 09 January
2024 in respect of the agreed Sustainability Information
listed below in accordance with the “Criteria” stated below.
This Sustainability Information is as included in the Business
Responsibility and Sustainability Report (‘BRSR’) of the
Group for the year ended 31 March 2024. This engagement
was conducted by a multidisciplinary team, including
professionals with suitable skills and experience in auditing
environmental, social, and economic information (Chartered
Accountants, Company Secretary, Lawyer, Engineers and
Environment Professionals).
Identified Sustainability Information
The Identified Sustainability Information for the year ended
31 March 2024 is summarized below:
The Identified Sustainability Information of the Group are the
Indicators other than BRSR Core of the Group for the year
ended 31 March 2024.
Our limited assurance engagement was with respect to the
year ended 31 March 2024 information only unless otherwise
stated and we have not performed any procedures with
respect to earlier periods and, therefore, do not express any
limited assurance conclusion thereon. We have also issued
a Reasonable Assurance Report on BRSR Core of the Group,
vide our report dated 17 June 2024.
Criteria
The Criteria used by the Group to prepare the Indicators other
than BRSR Core is summarized below:
The Group prepared Indicators other than BRSR Core based
on the requirements of:
•
Regulation 34(2)(f) of the Securities and Exchange Board
of India (the “SEBI”) (Listing Obligations and Disclosure
Requirements Regulations, 2015 (as amended);
•
Annexure I of SEBI’s Circular no. SEBI/HO/CFD/CFD-SEC-
2/P/CIR/2023/122, dated 12 July 2023, (prescribing the
format of BRSR Core);
•
Annexure II of SEBI’s Circular no. SEBI/HO/CFD/CFD-SEC-
2/P/CIR/2023/122, dated 12 July 2023, (prescribing the
format of BRSR (Revised), including BRSR Core);
•
Annexure II of the SEBI’s Circular no. SEBI/HO/CFD/CMD-
2/P/CIR/2021/562, dated 10 May 2021, (the Guidance
Note for the pre-revised BRSR Format); and
•
Nine Principles of the National Guidelines on Responsible
Business Conduct, 2019 (‘NGRBC Guidelines’), issued by
the Ministry of Corporate Affairs (‘MCA’).
Management’s Responsibilities
The Group’s management is responsible for establishing
the “Criteria” for preparing Indicators other than BRSR Core,
taking into account applicable Laws and Regulations, if any,
related to reporting on Indicators other than BRSR Core,
identification of key aspects, engagement with stakeholders,
content, preparation and presentation of Indicators
other than BRSR Core in accordance with the “Criteria”.
This responsibility includes design, implementation and
maintenance of internal controls relevant to the preparation
of BRSR, including Indicators other than BRSR Core and the
measurement of Indicators other than BRSR Core, which
is free from material misstatement, whether due to fraud
or error.
Inherent limitations
The absence of a significant body of established practice
on which to draw to evaluate and measure non-financial
information allows for different, but acceptable, measures
and measurement techniques and can affect comparability
between entities.
Our Independence and Quality Control
We have complied with the independence and other
ethical requirements of the International Code of Ethics
for Professional Accountants (including International
Independence Standards) issued by the International Ethics
Standards Board for Accountants (‘IESBA Code’), which is
founded on fundamental principles of integrity, objectivity,
professional competence, and due care, confidentiality, and
professional behavior.
Our firm applies International Standard on Quality
Management (‘ISQM’) 1, “Quality Management for Firms
that Perform Audits or Reviews of Financial Statements, or
Other Assurance or Related Services Engagements” and
accordingly maintains a comprehensive system of quality
management, including documented policies and procedures
regarding compliance with ethical requirements, professional
standards, and applicable legal and regulatory requirements.
Our Responsibility
Our responsibility is to express a limited assurance
conclusion on Indicators other than BRSR Core with respect
to the Entities/ Sites covered in the “Scope, Boundary, and
Limitations” paragraph given below, based on the procedures
we have performed and evidence we have obtained.
We conducted our engagement in accordance with the
International Standard on Assurance Engagements (‘ISAE’)
3000 (Revised), “Assurance Engagements other than Audits
or Reviews of Historical Financial Information”, issued by the
International Auditing and Assurance Standards Board. This
standard requires that we plan and perform our engagement
to obtain limited assurance about whether Indicators other
than BRSR Core are free from material misstatement.
A limited assurance engagement involves assessing the
suitability in the circumstances of the Company’s use of the
Criteria as the basis for the preparation of Indicators other
than BRSR Core whether due to fraud or error, responding to
the assessed risks as necessary in the circumstances, and
evaluating the overall presentation of the Indicators other
than the BRSR Core.
A limited assurance engagement is substantially less in
scope than a reasonable assurance engagement
in relation to both the risk assessment procedures, including
an understanding of internal controls, and the procedures
performed in response to the assessed risks.
Scope, Boundary and Limitations
Scope and Boundary
•
The scope of our limited assurance covers the Indicators
other than BRSR Core for the period 1 April 2023 to 31
March 2024.
•
Out of the boundary used for the preparation of the
audited Consolidated Financial Statements of the Group
for the Financial Year 2023-24, the boundary used for
the purpose of preparation of Indicators other than
BRSR Core includes the data and the information of the
Group, as mentioned in point no. 13 of Section A: General
Disclosures of BRSR of the Group for the Financial Year
2023-24. The following categories of Entities/Sites are not
considered for the purpose of preparation of Indicators
other than BRSR Core:
– newly incorporated Entities or Entities/Sites operational
for less than 12 months;
– non-operational/ intermittent operational Entities/Sites;
and
– Entities/Sites discontinued or outsourced.
Rest of the Entities/Sites considered for the preparation
of Indicators other than BRSR Core are as per the
management’s assessment of materiality, the details of
which are given in the Appendix to this Report.
•
The data review and validation of these Entities/ Sites was
performed through physical site visits and/or together
with desktop reviews.
Limitations
Our limited assurance scope excludes the following and
therefore we do not express a limited assurance conclusion
on the same:
•
Operations of the Group other than those covered in the
“Scope and Boundary”.
•
Aspects of BRSR and the data/information (qualitative or
quantitative) other than Indicators other than BRSR Core.
•
Data and information outside the defined reporting period
i.e., Financial Year 2023-24.
•
The statements that describe expression of opinion, belief,
aspiration, expectation, aim, or future intentions provided
by the Group.
•
Data related to Group’s financial performance, strategy
and other related linkages expressed in the Group’s
Integrated Report and Annual Accounts FY 2023-24 or any
other Report, containing Indicators other than BRSR Core.
•
Effectiveness of management’s internal controls of the
Group, while we considered the same when determining
the nature and extent of our procedures; however, our
limited assurance engagement was not designed to
provide assurance on these internal controls.
•
The Group’s compliance with Acts, Regulations and
Guidelines, other than those as specified in Indicators
other than BRSR Core.
•
Details of Scope 3 emissions.
Assurance Procedures
The procedures we performed were based on our
professional judgment and included inquiries, observation of
processes performed, inspection of documents, evaluating
the appropriateness of quantification methods and reporting
policies, analytical procedures and agreeing or reconciling
with underlying records.
Given the circumstances of the engagement, in performing
the procedures listed above, we:
•
Obtained an understanding of the Group’s business
activities, processes and its operating locations, as
identified by the Group.
•
Interviewed people involved to understand the reporting
process, governance, data management systems and
controls in place during the reporting period.
•
Performed limited substantive testing on a sample basis
of Indicators other than BRSR Core for the Entities/ Sites,
as covered in the “Scope, Boundary and Limitations”
to verify whether the data was appropriately recorded,
collated, measured and reported with underlying
supporting documents.
380
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
381
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
•
Checked the consolidation for the Entities/ Sites as
covered in the “Scope, Boundary and Limitations” for
ensuring the completeness of data being reported.
•
Assessed the level of adherence of the “Criteria”, as
mentioned above by the Group while reporting.
•
Verified the financial numbers which are also used for
Indicators other than BRSR Core from the Integrated
Report and Annual Accounts FY 2023-24.
•
Assessed the appropriateness of various assumptions,
estimations and thresholds used by the Group in the
preparation of Indicators other than BRSR Core.
•
Undertook analytical review procedures to support the
reasonableness of the data used in Indicators other than
BRSR Core.
•
Obtained written representations from
Group’s Management.
The procedures performed in a limited assurance
engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance
obtained in a limited assurance engagement is substantially
lower than the assurance that would have been obtained
had we performed a reasonable assurance engagement.
Accordingly, we do not express a reasonable assurance
opinion about whether the Indicators other than BRSR Core
have been prepared, in all material respects, in accordance
with the Criteria.
Limited Assurance Conclusion
Based on the procedures we have performed and the
evidence we have obtained, nothing has come to our
attention that causes us to believe that the Company’s
Indicators other than BRSR Core included in the BRSR for the
year ended 31 March 2024 are not prepared, in all material
respects, in accordance with the “Criteria”.
Emphasis of Matter
We draw your attention to the following matters:
•
The “Scope, Boundary and Limitations” in this report and
the boundary, as mentioned in point no. 13 of Section
A: General Disclosures of BRSR. These Entities/ Sites
are considered for the reporting in BRSR as per the
management’s assessment of materiality.
•
The financial numbers used in some of the Indicators
other than BRSR Core are extracted from the Integrated
Report and Annual Accounts FY 2023-24 and hence are
not audited by us. While the financial numbers related
to certain entities include inter-company consolidation
adjustments as per the applicable financial reporting
framework (net figures), the non-financial data used in
some of the Indicators other than BRSR Core related
to these entities are given without adjustments (gross
figures). Further, some of the Entities/ Sites are considered
for the purpose of said financial numbers, which may
have been excluded from the “Scope, Boundary and
Limitations”.
•
Some of the entities are considered for the purpose of
preparation of the Indicators other than BRSR Core on
full consolidation method, without adjusting for minority
interest in the relevant group entity, based on operational
control, as assessed by the management.
•
The Non-Financial Reporting System used by the Group
in the preparation of Indicators other than BRSR Core is
in the advanced stage of implementation and is in the
process of being integrated with other Financial and Non-
Financial Reporting Systems of the Group.
•
The disclosures with respect to Value Chain Partners have
been provided considering Tier 1 upstream Value Chain
Partners only.
•
For the purpose of reporting under Principle 3.8 (Essential
Indicator) and Principle5.1 (Essential Indicator) with
respect to ‘details of training given to employees and
workers on Health and Safety measures and skill
upgradation’ and ‘Employees and workers who have been
provided training on human rights issues and policy(ies)
of the entity’ respectively, the given percentage is more
than 100%, owing to the fact that employees and workers
have attended multiple trainings on the same topic and
have been counted more than once. The Company is in
the process of setting up the mechanism to capture the
required data going forward.
•
For the purpose of reporting under Principle 5.3(a)
(Essential Indicator) with respect to ‘Details of
remuneration/salary/wages’, the details of median of
remuneration paid to workers has not been provided due
to non-availability of information. The Company is in
the process of setting up the mechanism to capture the
required data going forward.
Our limited assurance conclusion is not modified in respect
of these matters.
Restriction on Use
Our limited assurance report has been prepared and
addressed to the Board of Directors of the Company at the
request of the company solely to assist the Company in
reporting on the Group’s Sustainability performance and
activities. Our deliverables should not be used for any other
purpose or by any person other than the addressees of
our deliverables.
For Mazars Advisory LLP
Firm Registration No.: AAI-2887
Sarika Gosain
Partner
Gurugram
17 June 2024
Independent Auditor’s Limited Assurance Report on Identified Sustainability Information in Vedanta
Limited’s Business Responsibility And Sustainability Report (Indicators Other Than BRSR Core)
S.No.
Entities and Sites Included
Status
1
Vedanta Limited
The Company
Iron Ore Odisha
Site
Value Added Business
Site
Karnataka Iron Ore Mines (IOK)
Site
Iron Ore Goa (IOG)
Site
Sesa Coke Vazare (SMCV)
Site
Sterlite Copper – Silvassa
Site
Sterlite copper- Tuticorin
Site
Vedanta Aluminium limited - Jharsuguda
Site
Vedanta Aluminium limited -Lanjigarh
Site
Cairn oil & gas -RJ-North (Mangla, Bhagyam, Aishwarya)
Site
Cairn oil & gas -RJ South
Site
Cairn oil & gas -RJ-North (Midstream)
Cairn oil & gas- Ravva
Site
Cairn oil & gas- Suvali
Site
Cairn oil & gas- Jaya, Cambay
Site
Cairn oil & gas- Assam operations
Site
2
Hindustan Zinc Limited (HZL)
Subsidiary of the Company
Rampura Agucha Mine
Site
Zawar Mines
Site
Rajpura Dariba Mine (RDM)
Site
Sindesar Khurd Mine (SKM)
Site
Dariba Smelter Complex (DSC)
Site
Chanderia Smelters
Site
Kayad Mines
Site
Debari
Site
Pantnagar
Site
3
Cairn Energy Hydrocarbons Ltd
Subsidiary of the Company
4
ESL Steels Limited
Subsidiary of the Company
ESL Plant, Bokaro
Site
5
Ferro Alloy Corporation Limited (FACOR)
Subsidiary of the Company
FACOR CCP & Power plant, Bhadrak
Site
Ostapal mines
Site
Kalaringita mines
Site
6
Bharat Aluminium Company Limited (BALCO)
Subsidiary of the Company
Smelters and Power plants,Korba
Site
Chotia Mines
Site
7
MALCO Energy Limited (MEL)
Subsidiary of the Company
Nicomet, Goa
Site
Sesa Coke, Gujarat
Site
8
Vizag General Cargo Berth Private Limited
Subsidiary of the Company
VGCB Port Facility
Site
9
Talwandi Sabo Power Limited
Subsidiary of the Company
Power plant-Mansa
Site
10
Black Mountain Mining (Pty) Limited
Subsidiary of the Company
Vedanta Zinc International - Gamsberg
Site
Vedanta Zinc International – Black Mountain Mines
Site
11
Fujairah Gold FZE
Subsidiary of the Company
Fujairah Gold, UAE
Site
382
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENT
383
Business Responsibility &
Sustainability Report
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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 AS
financial statements of Vedanta Limited (hereinafter referred
to as “the Holding Company”), its subsidiaries (the Holding
Company and its subsidiaries together referred to as “the
Group”) its associates, joint ventures and joint operation
comprising of the consolidated Balance sheet as at
31 March 2024, the consolidated Statement of Profit
and Loss, including other comprehensive income, the
consolidated Cash Flow Statement and the consolidated
Statement of Changes in Equity for the year then ended, and
notes to the consolidated financial statements, including
a summary of material accounting policies and other
explanatory information (hereinafter referred to as “the
consolidated financial statements”).
In our opinion and to the best of our information and
according to the explanations given to us and based on
the consideration of reports of other auditors on separate
financial statements and on the other financial information
of the subsidiaries, associates, joint ventures and joint
operation, the aforesaid consolidated financial statements
give the information required by the Companies Act, 2013,
as amended (“the Act”) in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the consolidated state of
affairs of the Group, its associates, joint ventures and joint
operation as at 31 March 2024, their consolidated profit
including other comprehensive income, their consolidated
cash flows and the consolidated statement of changes in
equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the consolidated financial
statements in accordance with the Standards on Auditing
(SAs), as specified under section 143(10) of the Act. Our
responsibilities under those Standards are further described
in the ‘Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements’ section of our report.
We are independent of the Group, associates, joint ventures
and joint operation in accordance with the ‘Code of Ethics’
issued by the Institute of Chartered Accountants of India
together with the ethical requirements that are relevant to
our audit of the financial statements under the provisions
of the Act and the Rules thereunder, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the consolidated
financial statements.
Emphasis of Matter
We draw attention to Note 4(A) of the consolidated financial
statements, with respect to accounting for an acquisition
approved by the National Company Law Tribunal, Hyderabad
Bench, overriding the applicable Ind-AS requirements. Further
as stated in the aforesaid note, the comparative financial
information for the year ended 31 March 2023 has also been
restated to give effect to the terms of merger.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
consolidated financial statements for the financial year ended
31 March 2024. These matters were addressed in the context
of our audit of the consolidated financial statements as a
whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. For each matter
below, our description of how our audit addressed the matter
is provided in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s
responsibilities for the audit of the consolidated financial
statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the
risks of material misstatement of the consolidated financial
statements. The results of audit procedures performed
by us and by other auditors of components not audited
by us, as reported by them in their audit reports furnished
to us by the management, including those procedures
performed to address the matters below, provide the basis
for our audit opinion on the accompanying consolidated
financial statements.
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(M), 42(N) of the consolidated Ind AS
financial statements)
The Group has undertaken transactions with related party,
Vedanta Resources Limited (‘VRL’), its intermediate holding
company and its affiliates including loan, payment of brand and
strategic management fee, agency commission and guarantees
commission.
Accounting and disclosure of such related party transactions
has been identified as a key audit matter due to a) Significance
of such related 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 disclosed in the financial
statements.
Our procedures included the following:
•
Obtained and read the Group’s policies, processes and procedures in
respect of identification of such related parties in accordance with relevant
laws and standards, obtaining approval, recording and disclosure of
related party transactions and identified key controls. For selected controls
we have performed tests of controls.
•
Tested such related party transactions and balances with the underlying
contracts, confirmation letters and other supporting documents provided
by the Group.
•
Examined the approvals / modification of the transactions by the board
and/or audit committee.
•
Obtained and assessed management evaluation of the modification of the
terms and its implications with regards to the regulatory requirements and
Ind AS 109. .
•
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 credit losses/(reversals) on loans to parent company and
its affiliates.
•
Engaged valuation experts to assist us in performing the said procedures.
•
Held discussions and obtained representations from the management in
relation to such transactions.
Read the disclosures made in this regard in the financial statements and
assessed 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 (as described in note 3(a)(G), 3(a)(H)(ii), 3(c)(A)(i), 3(c)(A)(iii), 3(c)(A)(v), 3(c)(A)(vi), 6 and 36 of the consolidated Ind AS financial
statements)
As at 31 March 2024, the Group had significant amounts of
property, plant and equipment, capital work in progress and
exploration intangible assets under development which were
carried at historical cost less depreciation.
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 Iron Ore segment
Recoverability of property plant and equipment, capital work in
progress and exploration intangible assets under development
being carried at cost has been identified as a key audit matter
due to:
•
The significance of the carrying value of assets
being assessed.
•
The fact that the assessment of the recoverable amount
of the Group’s CGU involves significant judgements about
the future cash flow forecasts, scrap value / Depreciated
Replacement Cost, price, production forecasts and the
discount rate that is applied.
•
The withdrawal of the Holding Company’s licenses to
operate the copper plant and unfavorable order of the
Hon’ble Supreme Court of India, leading to an impairment
charge of ` 746 crore.
•
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.
Our audit procedures included the following:
•
Obtained and read the Group’s policies, processes and procedures in
respect of identification of impairment indicators, recording and disclosure
of impairment charge / (reversal) and identified key controls. For selected
controls we have 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 segment where impairment (charge) / reversal
indicators were identified, obtained and evaluated the valuation models
used to determine the recoverable amount by assessing the key
assumptions used by management, which included:
– Assessment of implications of withdrawal of Holding Company’s
license to operate the copper plant at Tuticorin. Assessed
management’s position after unfavorable order of the Hon’ble
Supreme Court against reopening of the plant and its consequential
impairment on PPE, CWIP and other assets.
– Evaluated the valuation methodology adopted by the management
i.e. determination of fair value less cost of disposal through various
scenarios 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.
384
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STATUTORY REPORTS
385
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
Key audit matters
How our audit addressed the key audit matter
•
Receipt of final partial arbitration award on DGH demand
arbitration and accordingly recognized ` 4,761 crore in
revenue from operations due to allowance of exploration
cost recovery and its impact on IM tranche. Accordingly,
impairment of ` 1,179 crore was reversed on PPE. However,
the government has filed an appeal with the High Court
against the arbitration award.
•
The fact that in the previous year, the Group obtained the
mining license and have started the mining activity at Bomi
mine in Liberia, leading to reversal of impairment in the
previous year. However, the operations in the current year
were not in line with the projected performance.
The key judgements and estimates are centered on the
assessment of Scrap / Depreciated Replacement Cost for the
Copper plant, cash flow forecasts, impact of litigation w.r.t.
partial arbitration award, discount rate assumptions, price and
production forecasts and related disclosures as given in note 6
(Property, plant and equipment) / 36 (Exceptional items) of the
accompanying financial statements.
– Corroborated the sales price assumptions used in the models
against analyst consensus / geography of sales and assessed the
reasonableness of costs.
– Compared the production forecasts used in the impairment tests with
management’s approved reserves and resources estimates.
– Evaluated the grounds of appeal filed with High Court for partial
arbitration award received by Company.
– Tested the weighted average cost of capital used to discount the
impairment models.
– Tested the mathematical accuracy of the models.
– 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 assessed the scope of work and findings of
these third parties;
– Assessed the competence, capability and objectivity of experts
engaged by management; through understanding their relevant
professional qualifications 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 financial
statements)
As of 31 March 2024 the value of disputed receivables in the
power segment aggregated to ` 2,293 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 disagreements over the quantification 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. The risk is specifically 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.
•
Tested arithmetical accuracy of the models prepared by the management.
•
Obtained independent external lawyer confirmation from Legal Counsel of
the 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.
Key audit matters
How our audit addressed the key audit matter
Claims and exposures relating to taxation and litigation (as described in note 3(c)(B)(ii), 36, 37e, 40D and 41 of the consolidated Ind AS
financial statements)
The Group is subject to a large number of tax and legal disputes,
including developments in the DGH arbitration matter in the oil
and gas segment, vendor arbitrations / termination of contract,
mining royalty demand, income tax disallowances and various
indirect tax disputes which have been disclosed / provided for in
the financial statements based on the facts and circumstances
of each case.
Taxation and litigation exposures (including termination of
contract) have been identified as a key audit matter due to the
complexities involved in these matters, timescales involved
for resolution and the potential financial impact of these on
the financial statements. Further, significant management
judgement is involved in assessing the exposure of each case
and thus a 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:-
•
Obtained an understanding of the process of identification of claims,
litigations and its classification as probable, possible or remote and
identified key controls in the 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 and operational management, on both the
probability of success in significant cases, and the magnitude of any
potential loss.
•
Obtained independent external lawyer confirmation from Legal Counsel of
the Group who is contesting the cases.
•
Examined external legal opinions (where considered necessary) and other
evidence to corroborate management’s assessment of the risk profile in
respect of legal 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.
•
Evaluated management assessment as per contractual terms, in respect
of amount written back amounting to ` 794 crore in the statement of Profit
and loss, relating to capital contractors due to its continuing failure in
fulfilling contractual obligations impacting plant performance and towards
loss of profit due to plant performance in the current and earlier years and
adjusted ` 458 crore towards the cost of spares and ancillaries capitalised
in PPE in earlier years
•
Assessed the relevant disclosures made within the financial statements
to address 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.
Recoverability of Deferred Tax Assets (as described in note 3(c)(A)(ii) and 37 of the consolidated Ind AS financial statements)
Deferred tax assets (“DTA”) as at 31 March 2024 includes an
amount of ` 2,787 crore pertaining to ESL Steels Limited (ESL),
one of the component of the Group.
The analysis of the recoverability of such deferred tax assets
has been identified as a key audit matter by the component
auditor because the assessment process involves judgement
regarding the future profitability, allowability of tax positions /
deductions claimed by the management in the tax computations
and likelihood of the realizability of the deferred tax assets, in
particular whether there will be taxable profits in future periods
that support the recoverability of these assets. This requires
assumptions regarding future profitability, 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 group’s process for estimating the
recoverability of the deferred tax assets.
•
Performed procedures as per SA 600 – Using the Work of Another
Auditor. Engaged with the component auditor to evaluate the procedures
performed by them with respect to the recoverability assessment of the
DTA. We performed inquiry of the audit procedures performed by them to
address the key audit matter. As reported to us by the subsidiary auditor,
the following procedure have been performed by them:
– Analysis of the future projections of taxable profits estimated by
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.
•
Assessed the disclosures made by the Group in this regard.
386
CORPORATE OVERVIEW
STATUTORY REPORTS
387
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
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 financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may
cause the Group and its associates, joint ventures and
joint operation to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content
of the consolidated financial statements, including the
disclosures, and whether the consolidated financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
•
Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities
within the Group and its associates, joint ventures
and joint operation of which we are the independent
auditors and whose financial information we have
audited, to express an opinion on the consolidated
financial statements. We are responsible for the direction,
supervision and performance of the audit of the financial
statements of such entities included in the consolidated
financial statements of which we are the independent
auditors. For the other entities included in the consolidated
financial statements, which have been audited by other
auditors, such other auditors remain responsible for the
direction, supervision and performance of the audits
carried out by them. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance of
the Holding Company and such other entities included in
the consolidated financial statements of which we are the
independent auditors regarding, among other matters, the
planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of
most significance in the audit of the consolidated financial
statements for the financial year ended 31 March 2024
and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.
Information Other than the Financial Statements
and Auditor’s Report Thereon
The Holding Company’s Board of Directors is responsible
for the other information. The other information comprises
the information included in the Annual report, but does
not include the consolidated financial statements and our
auditor’s report thereon.
Our opinion on the consolidated financial statements does
not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information
and, in doing so, consider whether such other information
is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities of Management for the
Consolidated Financial Statements
The Holding Company’s Board of Directors is responsible
for the preparation and presentation of these consolidated
financial statements in terms of the requirements of the Act
that give a true and fair view of the consolidated financial
position, consolidated financial performance including
other comprehensive income, consolidated cash flows and
consolidated statement of changes in equity of the Group
including its associates, joint ventures and joint operation
in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards
(Ind AS) specified under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015,
as amended. The respective Board of Directors of the
companies included in the Group and of its associates, joint
ventures and joint operation are responsible for maintenance
of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of their
respective companiesand for preventing and detecting
frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and the
design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the
consolidated financial statements that give a true and fair
view and are free from material misstatement, whether due
to fraud or error, which have been used for the purpose of
preparation of the consolidated financial statements by the
Directors of the Holding Company, as aforesaid.
In preparing the consolidated financial statements, the
respective Board of Directors of the companies included
in the Group and of its associates, joint ventures and joint
operation are responsible for assessing the ability of their
Other Matter
(a) We did not audit the financial statements and other
financial information, in respect of 26 subsidiaries,
whose financial statements include total assets of Rs
41,040 Crore as at 31 March 2024, and total revenues
of Rs 17,027 Crore, total net loss after tax of Rs 3,093
Crore, total comprehensive loss of Rs 3,089 Crore, and
net cash outflows of Rs 72 Crore for the year ended on
that date. These financial statement and other financial
information have been audited by other auditors, which
financial statements, other financial information and
auditor’s reports have been furnished to us by the
management. The consolidated financial statements
also include the Group’s share of total assets of ` Nil,
total revenues of ` Nil, total net profit of ` 2 crore, total
comprehensive income of ` 2 crore, and net cash
inflows of ` Nil for the year ended 31 March 2024, as
considered in the consolidated financial statements,
in respect of 1 associate and 1 joint venture, whose
financial statements, other financial information have
been audited by other auditors and whose reports
have been furnished to us by the Management. Our
opinion on the consolidated financial statements, in
so far as it relates to the 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 venture
are located outside India whose financial statements
and other financial information have been prepared
in accordance with accounting principles generally
accepted in their respective countries and which have
been audited by other auditors under generally accepted
auditing standards applicable in their respective
countries. The Holding Company’s management has
converted the financial statements of such subsidiaries,
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.
(b) The accompanying consolidated financial statements
include unaudited financial statements and other
unaudited financial information in respect of 9
subsidiaries, whose financial statements and other
financial information reflect total assets of ` 2,141 Crore
as at 31 March 2024, total revenues of ` 239 Crore, total
net loss after tax of ` 486 Crore, total comprehensive
loss of ` 481 Crore and net cash outflows of ` 12
Crore for the year ended on that date. These unaudited
respective companies 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, joint ventures
and joint operation are also responsible for overseeing the
financial reporting process of their respective companies.
Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance
with SAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
•
Identify and assess the risks of material misstatement
of the consolidated financial statements, whether due
to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
•
Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under section 143(3)
(i) of the Act, we are also responsible for expressing our
opinion on whether the Holding Company has adequate
internal financial controls with reference to financial
statements in place and the operating effectiveness of
such controls.
•
Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
•
Conclude on the appropriateness of management’s use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may
cast significant doubt on the ability of the Group and its
associates, joint ventures and joint operation to continue
388
CORPORATE OVERVIEW
STATUTORY REPORTS
389
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
financial statements and other unaudited financial
information have been furnished to us by the
management. The consolidated financial statements
also include the Group’s share of total assets of ` Nil,
total revenues of ` Nil, total net profit of ` Nil, total
comprehensive income of ` Nil and net cash inflows of
` Nil for the year ended 31 March 2024, as considered
in the consolidated financial statements, in respect
of 1 associate and 3 joint ventures, whose financial
statements, other financial information have not been
audited and whose unaudited financial statements,
other unaudited financial information have been
furnished to us by the Management. The consolidated
Ind AS financial statements also includes group’s share
of total assets of ` 200 crore as at 31 March 2024, total
revenues of ` 111 Crore, total net profit after tax of ` 28
Crore, total comprehensive income of ` 28 Crore for the
year ended 31 March 2024, and net cash inflows of ` Nil
for the year ended
31 March 2024 in respect of unincorporated joint
operation not operated by the Group. Our opinion, in
so far as it relates amounts and disclosures included
in respect of these subsidiaries, joint ventures, joint
operation 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, is based solely on such unaudited financial
statements and other unaudited financial information.
In our opinion and according to the information and
explanations given to us by the Management, these
financial statements and other financial information are
not material to the Group.
Our opinion above on the consolidated financial statements,
and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with
respect to our reliance on the work done and the reports of
the other auditors and the financial statements and other
financial information certified by the Management.
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
of report of the other auditors on separate financial
statements and the other financial information of the
subsidiary companies, associate companies, joint
ventures and joint operation, incorporated in India, as
noted in the ‘Other Matter’ paragraph we give in the
“Annexure 1” a statement on the matters specified in
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
auditors on separate financial statements and the
other financial information of subsidiaries, associates,
joint ventures and joint operations, as noted in the
remuneration for the year ended 31 March 2024
has been paid / provided by the Holding Company,
its subsidiaries, associates, joint ventures and joint
operations incorporated in India to their directors in
accordance with the provisions of section 197 read
with Schedule V to the Act;
(h) The modification relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph (b) above on
reporting under Section 143(3)(b) and paragraph
i(vi) below on reporting under Rule 11(g).
(i)
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended, in our opinion and to the best of our
information and according to the explanations
given to us [and based on the consideration
of the report of the other auditors on separate
financial statements as also the other financial
information of the subsidiaries, associates, joint
ventures and joint operations, as noted in the ‘Other
matter’ paragraph:
i.
The consolidated financial statements
disclose the impact of pending litigations
on its consolidated financial position of
the Group, its associates, joint ventures
and joint operations in its consolidated
financial statements – Refer Note 3(c)(B)
(ii), 36, 37e, 40D and 41 to the consolidated
financial statements;
ii.
The Group, its associates, joint ventures and
joint operations did not have any material
foreseeable losses in long-term contracts
including derivative contracts during the year
ended 31 March 2024;
iii.
There has been no delay in transferring
amounts, required to be transferred, to the
Investor Education and Protection Fund
by the Holding Company, its subsidiaries,
associates, joint ventures and joint operations,
incorporated in India during the year ended 31
March 2024.
iv.
a)
The respective managements of the
Holding Company and its subsidiaries,
associate, joint ventures and joint
operations which are companies
incorporated in India whose financial
statements have been audited under
the Act have represented to us and the
other auditors of such subsidiaries,
associate, joint ventures and joint
operations respectively that, to the best
of its knowledge and belief, as disclosed
‘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 for the
purposes of our audit of the aforesaid consolidated
financial statements;
(b) In our opinion, proper books of account as required
by law relating to preparation of the aforesaid
consolidation of the financial statements have been
kept so far as it appears from our examination
of those books and reports of the other auditors
except for the matters stated in the paragraph i(vi)
below on reporting under Rule 11(g);
(c)
The Consolidated Balance Sheet, the Consolidated
Statement of Profit and Loss including the
Statement of Other Comprehensive Income,
the Consolidated Cash Flow Statement and
Consolidated Statement of Changes in Equity
dealt with by this Report are in agreement
with the books of account maintained for the
purpose of preparation of the consolidated
financial statements;
(d) In our opinion, the aforesaid consolidated financial
statements comply with the Accounting Standards
specified under Section 133 of the Act, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended;
(e)
On the basis of the written representations received
from the directors of the Holding Company as on
31 March 2024 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, joint ventures and joint
operation, none of the directors of the Group’s
companies, its associates, joint ventures and joint
operations, incorporated in India, is disqualified
as on 31 March 2024 from being appointed as a
director in terms of Section 164 (2) of the Act;
(f)
With respect to the adequacy of the internal
financial controls with reference to consolidated
financial statements of the Holding Company and
its subsidiary companies, associate companies,
joint ventures and joint operations, incorporated
in India, and the operating effectiveness of such
controls, refer to our separate Report in
“Annexure 2” to this report;
(g) In our opinion and based on the consideration
of reports of other statutory auditors of the
subsidiaries, associates, joint ventures and joint
operations incorporated in India, the managerial
in the note 42(O) to the consolidated
financial statements, 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 Holding Company or any
of such subsidiaries, associates, joint
ventures and joint operations 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
persons or entities identified in any
manner whatsoever by or on behalf of
the respective Holding Company or any
of such subsidiaries, associate, joint
ventures and joint operations (“Ultimate
Beneficiaries”) or provide any guarantee,
security or the like on behalf of the
Ultimate Beneficiaries;
b)
The respective managements of the
Holding Company and its subsidiaries,
associates, joint ventures and joint
operations which are companies
incorporated in India whose financial
statements have been audited under
the Act have represented to us and the
other auditors of such subsidiaries,
associates, joint ventures and joint
operations respectively that, to the
best of its knowledge and belief, other
than as disclosed in the note 42(O) to
the consolidated financial statements,
no funds have been received by the
respective Holding Company or any
of such subsidiaries, associates, joint
ventures and joint operations 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,
associates, joint ventures and joint
operations shall, whether, directly or
indirectly, lend or invest in other persons
or entities identified in any manner
whatsoever by or on behalf of the
Funding Party (“Ultimate Beneficiaries”)
or provide any guarantee, security
or the like on behalf of the Ultimate
Beneficiaries; and
c)
Based on the audit procedures that
have been considered reasonable
and appropriate in the circumstances
performed by us and that performed
390
CORPORATE OVERVIEW
STATUTORY REPORTS
391
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
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:
Qualifications or adverse remarks by the respective auditors in the Companies (Auditors Report) Order (CARO) reports of the
companies included in the consolidated financial statements are:
S.
No
Name
CIN
Holding company/
subsidiary/ associate/
joint venture
Clause number of the CARO
report which is qualified or is
adverse
1
Vedanta Limited
L13209MH1965PLC291394
Holding Company
(i)(b), (ii)(a) (iii)(e), vii(a), (ix)(d)
2
Bharat Aluminium Company Limited
U74899DL1965PLC004518
Subsidiary
(ix)(d)
3
Sesa Resources Limited
U13209GA1965PLC000030
Subsidiary
(i)(c)
4
Malco Energy Limited
U31300TN2001PLC069645
Subsidiary
(ix)(d)
5
Hindustan Zinc Limited
L27204RJ1966PLC001208
Subsidiary
(iii)(e)
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
Date: April 25, 2024
UDIN: 24093649BKGPPY9963
by the auditors of the subsidiaries,
associates, joint ventures and joint
operations which are companies
incorporated in India whose financial
statements have been 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)
The interim dividend declared and paid
during the year by the Holding Company,
its subsidiaries, associate, joint venture and
joint operation companies incorporated in
India and until the date of the respective
audit reports of such Holding Company,
subsidiaries, associate joint ventures and joint
operations is in accordance with section 123
of the Act.
vi) Based on our examination which included test
checks and that performed by the respective
auditors of the subsidiaries, associates,
joint ventures and joint operations, which
are companies incorporated in India whose
financial statements have been audited under
the Act, except for the instances discussed
in note 46 to the financial statements, the
Holding Company, subsidiaries, associates
and joint ventures have used accounting
software for maintaining its books of
account which has a feature of recording
audit trail (edit log) facility and the same has
operated throughout the year for all relevant
transactions recorded in the software.
Further, during the course of our audit, we
and respective auditors of the above referred
subsidiaries, associates and joint ventures did
not come across any instance of audit trail
feature being tampered in respect of other
accounting software.
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
Date: April 25, 2024
UDIN: 24093649BKGPPY9963
392
CORPORATE OVERVIEW
STATUTORY REPORTS
393
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
ANNEXURE-2
to the Independent Auditor’s Report of even date on the Consolidated Ind AS Financial Statements of Vedanta Limted
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Ind AS
financial statements of Vedanta Limited (hereinafter referred
to as the “Holding Company”) as of and for the year ended
31 March 2024, we have audited the internal financial
controls with reference to consolidated financial statements
of the Holding Company and its subsidiaries (the Holding
Company and its subsidiaries together referred to as “the
Group”), its associates and joint ventures and joint operation,
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 21 subsidiary companies, its 1 associate company and 2
joint ventures, which are companies incorporated in India, are
responsible for establishing and maintaining internal financial
controls based on the internal control over financial reporting
criteria established by the Holding Company considering
the essential components of internal control stated in the
Committee of Sponsoring Organisations of the Treadway
Commission (2013 Framework) (“COSO 2013 Criteria”).
These responsibilities include the design, implementation and
maintenance of adequate internal financial controls that were
operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to the respective
company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
preparation of reliable financial information, as required under
the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Holding
Company's internal financial controls with reference to
these consolidated financial statements based on our audit.
We conducted our audit in accordance with the Guidance
Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on
Auditing, both, issued by Institute of Chartered Accountants
of India, and deemed to be prescribed under section 143(10)
of the Act, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note
require that we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference
to these consolidated Ind AS financial statements was
established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls with reference to these consolidated Ind AS financial
statements and their operating effectiveness. Our audit of
internal financial controls with reference to consolidated
financial statements included obtaining an understanding
of internal financial controls with reference to these
consolidated Ind AS financial statements, assessing the risk
that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control
based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the
risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained and the
audit evidence obtained by the other auditors in terms of their
reports referred to in the Other Matters paragraph below, is
sufficient and appropriate to provide a basis for our audit
opinion on the internal financial controls with reference to
these consolidated Ind AS financial statements.
Meaning of Internal Financial Controls With
Reference to these Consolidated Ind AS Financial
Statements
A company's internal financial control with reference
to these consolidated Ind AS financial statements is
a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles.
A company's internal financial control with reference to
these consolidated financial statements includes those
policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial
Controls With Reference to these Consolidated
Financial Statements
Because of the inherent limitations of internal financial
controls with reference to these consolidated Ind AS
financial statements, including the possibility of collusion
or improper management override of controls, material
misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal
financial controls with reference to these consolidated Ind
AS financial statements to future periods are subject to the
risk that the internal financial controls with reference to these
consolidated financial statements may become inadequate
because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
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
material respects, adequate internal financial controls with
reference to these consolidated Ind AS financial statements
and such internal financial controls with reference to these
consolidated Ind AS financial statements were operating
effectively as at 31 March 2024, based on the internal control
over financial reporting criteria established by the Holding
Company considering the essential components of internal
control stated in the. COSO 2013 criterion.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy
and operating effectiveness of the internal financial controls
with reference to these consolidated financial statements of
the Holding Company, in so far as it relates to 12 subsidiary
companies, 1 associate and 2 joint ventures which
are companies incorporated in India, is based on the
corresponding reports of the auditors of such subsidiaries,
associates and joint ventures incorporated in India.
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
Date: April 25, 2024
UDIN: 24093649BKGPPY9963
394
CORPORATE OVERVIEW
STATUTORY REPORTS
395
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET
As at 31 March 2024
(C in crore)
Particulars
Note
As at
31 March 2024
As at
31 March 2023*
ASSETS
Non-current assets
Property, Plant and Equipment
6
96,715
93,768
Capital work-in-progress
6
20,331
17,273
Intangible assets
6
2,248
1,976
Exploration intangible assets under development
6
2,558
2,256
Financial assets
Investments
7A
987
514
Trade receivables
8
2,409
2,532
Loans
9
5
10
Derivatives
24
3
-
Others
10
2,670
3,784
Deferred tax assets (net)
37
2,689
7,074
Income tax assets (net)
37
3,796
2,077
Other non-current assets
11
4,472
3,606
Total non-current assets
1,38,883
1,34,870
Current assets
Inventories
12
13,001
15,012
Financial assets
Investments
7B
10,882
12,636
Trade receivables
8
3,607
4,014
Cash and cash equivalents
13
2,812
6,926
Other bank balances
14
1,515
2,328
Loans
9
3,364
3,760
Derivatives
24
168
214
Others
10
12,757
7,868
Income tax assets (net)
48
1,256
Other current assets
11
3,770
6,493
Total current assets
51,924
60,507
Total Assets
1,90,807
1,95,377
EQUITY AND LIABILITIES
Equity
Equity share capital
15
372
372
Other equity
16
30,350
39,051
Equity attributable to owners of Vedanta Limited
30,722
39,423
Non-controlling interests
17
11,347
10,004
Total Equity
42,069
49,427
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
19A
50,633
43,476
Lease liabilities
23
536
144
Derivatives
24
-
20
Other financial liabilities
22
493
1,606
Provisions
25
3,105
3,426
Deferred tax liabilities (net)
37
10,152
5,922
Other non-current liabilities
26
5,158
4,309
Total non-current liabilities
70,077
58,903
Current liabilities
Financial liabilities
Borrowings
19B
21,125
22,706
Lease liabilities
23
477
302
Operational buyers' credit / suppliers' credit
21
14,935
13,701
Trade payables
20
10,095
11,043
Derivatives
24
144
193
Other financial liabilities
22
17,569
24,861
Other current liabilities
26
11,477
13,238
Provisions
25
341
381
Income tax liabilities (net)
2,498
622
Total current liabilities
78,661
87,047
Total Equity and Liabilities
1,90,807
1,95,377
* Restated, refer note 4(A).
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
For the year ended 31 March 2024
(C in crore)
Particulars
Note
Year ended
31 March 2024
Year ended
31 March 2023*
Revenue from operations
27
1,41,793
1,45,404
Other operating income
28
1,934
1,904
Other income
29
2,550
2,851
Total income
1,46,277
1,50,159
Expenses
Cost of materials consumed
44,115
44,470
Purchases of stock-in-trade
116
57
Changes in inventories of finished goods, work-in-progress and stock in trade
30
176
(377)
Power and fuel charges
23,547
30,950
Employee benefits expense
31
3,300
3,098
Finance costs
34
9,465
6,225
Depreciation, depletion and amortisation expense
6
10,723
10,555
Other expenses
35
37,275
34,688
Total expenses
1,28,717
1,29,666
Profit before exceptional items and tax
17,560
20,493
Net exceptional gain/(loss)
36
2,803
(217)
Profit before tax
20,363
20,276
Tax expense:
37
Other than exceptional items
Net current tax expense
5,906
7,624
Net deferred tax expense/ (benefit)
400
(1,580)
Exceptional items
Net deferred tax expense
8,339
1,269
Net current tax benefit
(1,819)
(1,543)
Net tax expense:
12,826
5,770
Profit after tax for the period before share in profit/ (loss) of jointly controlled entities and
associates
7,537
14,506
Add: Share in profit/ (loss) of jointly controlled entities and associates
2
(3)
Profit for the period after share in profit/ (loss) of jointly controlled entities and associates (A)
7,539
14,503
Other comprehensive income
Items that will not be reclassified to profit or loss
Re-measurement loss on defined benefit plans
(8)
(11)
Tax benefit
7
11
Loss on FVOCI equity investment
(17)
(37)
(18)
(37)
Items that will be reclassified to profit or loss
Net (loss)/ gain on cash flow hedges recognised during the period
(53)
3,451
Tax benefit/ (expense)
15
(1,201)
Net loss on cash flow hedges recycled to profit or loss
(51)
(3,433)
Tax benefit
13
1,201
Net gain/ (loss) on FVOCI debt investment
2
(34)
Tax (expense)/ benefit
(0)
4
Exchange differences on translation
(1,814)
886
Tax benefit
18
84
(1,870)
958
Total other comprehensive (loss)/ income (B)
(1,888)
921
Total comprehensive income for the period (A+B)
5,651
15,424
Profit attributable to:
Owners of Vedanta Limited
4,239
10,574
Non-controlling interests
3,300
3,929
Other comprehensive (loss)/ income attributable to:
Owners of Vedanta Limited
(1,879)
987
Non-controlling interests
(9)
(66)
Total comprehensive income attributable to:
Owners of Vedanta Limited
2,360
11,561
Non-controlling interests
3,291
3,863
Earnings per equity share (C):
- Basic
38
11.42
28.50
- Diluted
38
11.33
28.32
* Restated, refer note 4(A)
396
CORPORATE OVERVIEW
STATUTORY REPORTS
397
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of short-term borrowings (net)
(148)
(951)
Proceeds from current borrowings
10,770
23,846
Repayment of current borrowings
(18,770)
(18,319)
Proceeds from long-term borrowings
25,478
18,624
Repayment of long-term borrowings
(12,515)
(10,464)
Interest paid
(9,825)
(5,530)
Payment for acquiring non-controlling interest
-
(17)
Payment of dividends to equity holders of the Company, net of taxes
(18,572)
(29,959)
Payment of dividends to non-controlling interests
(1,928)
(11,190)
Payment of lease liabilities
(382)
(182)
Purchase of treasury shares for stock options
(200)
-
Net cash used in financing activities
(26,092)
(34,142)
Effect of exchange rate changes on cash and cash equivalents
10
25
Net decrease in cash and cash equivalents
(4,114)
(1,745)
Cash and cash equivalents at the beginning of the year
6,926
8,671
Cash and cash equivalents at end of the year (Refer note 13)
2,812
6,926
Notes:
1. The figures in parentheses indicate outflow.
2. The above cash flow has been prepared under the "Indirect Method" as set out in Indian Accounting Standard (Ind AS) 7 - statement of
cash flows
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
20,363
20,276
Adjustments for:
Depreciation, depletion and amortisation
10,744
10,597
Impairment charge/(reversal) on property, plant and equipment/ Capital work-in-progress (CWIP)/
Other assets written off (net) (Refer note 36)
(185)
(771)
Other exceptional items (Refer note 36)
(2,618)
-
Provision for doubtful advances/ expected credit loss/ bad debts written off
261
426
Exploration costs written off
786
327
Liabilities written back
(135)
(256)
Other non-cash items
-
(66)
Net gain on sale of long term investments (Refer note 4(D))
(178)
-
Fair value gain on financial assets held at fair value through profit or loss
(128)
(74)
Loss on sale/ discard of property, plant and equipment (net)
114
9
Foreign exchange loss (net)
263
492
Unwinding of discount on decommissioning liability
135
96
Transfer of CSR assets (Refer note 6)
-
117
Share based payment expense
70
77
Interest and dividend income
(1,727)
(2,283)
Interest expense
9,330
6,129
Deferred government grant
(308)
(273)
Changes in working capital
Decrease in trade and other receivables
180
1,662
Decrease/ (Increase) in inventories
1,670
(728)
(Decrease)/ Increase in trade and other payables
(298)
3,665
Cash generated from operations
38,339
39,422
Income taxes paid (net)
(2,685)
(6,357)
Net cash generated from operating activities
35,654
33,065
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (including intangibles, CWIP, capital advances and
creditors)
(16,752)
(13,787)
Proceeds from sale of property, plant and equipment
195
133
Loans repaid by related parties (Refer note 42)
267
2,408
Deposits made
(2,361)
(4,203)
Proceeds from redemption of deposits
1,768
9,238
Short term investments made
(53,764)
(1,11,039)
Proceeds from sale of short term investments
55,851
1,15,244
Interest received
1,678
1,674
Dividends received
40
18
Payment made to site restoration fund
(204)
(129)
Proceeds from sale of investment in subisidiary (Refer note 4(D))
84
-
Proceeds from sale of long term investments
8
-
Purchase of long term investments
(496)
(250)
Net cash used in investing activities
(13,686)
(693)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
398
CORPORATE OVERVIEW
STATUTORY REPORTS
399
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
Note:
Other reserves comprise:
(C in crore)
Particulars
Capital
redemption
reserve
Preference
share
redemption
reserve
Capital
reserve on
consolidation
Share
based
payment
reserve
Legal
reserve
Treasury
shares
General
reserve
Total
Balance as at 01 April 2022
23
3,087
10
136
25
(230)
16,095
19,146
Recognition of share based payment
-
-
-
85
-
-
-
85
Stock options cancelled during
the year
-
-
-
(15)
-
-
-
(15)
Exercise of stock options
-
-
-
(38)
-
126
-
88
Balance as at 31 March 2023
23
3,087
10
168
25
(104)
16,095
19,304
Recognition of share based payment
-
-
-
92
-
-
-
92
Purchase of treasury shares
-
-
-
-
-
(200)
-
(200)
Exercise of stock options
-
-
-
(47)
-
99
-
52
Balance as at 31 March 2024
23
3,087
10
213
25
(205)
16,095
19,248
A. Equity Share Capital
Equity shares of C 1 each issued, subscribed and fully paid
Number of shares
(in crore)
Amount
(C in crore)
As at 31 March 2024, 31 March 2023 and 31 March 2022*
372
372
*There are no prior period errors for the years ended 31 March 2023 and 31 March 2022.
B. Other Equity
(C in crore)
Particulars
Reserves and surplus
Items of OCI
Capital
reserve
Securities
premium
Retained
earnings
Other
reserves
(Refer note
below)
Foreign
currency
translation
reserve
Instruments
through
OCI
Effective
portion of
cash flow
hedges
Attributable
to owners
of the
Company
Non-
controlling
interests
Total
Balance as at 01 April 2022
18,610
19,009
4,316
19,146
3,779
108
43
65,011
17,321
82,332
Profit for the year
-
-
10,574
-
-
-
-
10,574
3,929
14,503
Other comprehensive income
for the year (net of tax impact)
-
-
(3)
-
1,072
(57)
(25)
987
(66)
981
Total comprehensive income
for the year
-
-
10,571
-
1,072
(57)
(25)
11,561
3,863
15,424
Recognition of share based
payment
-
-
-
85
-
-
-
85
-
85
Stock options cancelled during
the year
-
-
8
(15)
-
-
-
(7)
-
(7)
Exercise of stock option
-
-
(78)
88
-
-
-
10
-
10
Recognition of put option
liability/derecognition of non
controlling interest
21
-
-
-
-
-
-
21
(31)
(10)
Acquisition of non-controlling
interest in FPL
(58)
-
-
-
-
-
-
(58)
41
(17)
Dividend, net of taxes (Refer
note 39)
-
-
(37,572)
-
-
-
-
(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
Profit for the year
-
-
4,239
-
-
-
-
4,239
3,300
7,539
Other comprehensive income
for the year (net of tax impact)
-
-
(5)
-
(1,790)
(16)
(68)
(1,879)
(9)
(1,888)
Total comprehensive income
for the year
-
-
4,234
-
(1,790)
(16)
(68)
2,360
3,291
5,651
Recognition of share based
payment
-
-
-
92
-
-
-
92
-
92
Purchase of treasury shares
-
-
-
(200)
-
-
-
(200)
-
(200)
Exercise of stock option
-
-
(32)
52
-
-
-
20
-
20
Recognition of put option
liability/derecognition of non
controlling interest
(14)
-
-
-
-
-
-
(14)
(20)
(34)
Dividend (Refer note 39)
-
-
(10,959)
-
-
-
-
(10,959)
(1,928)
(12,887)
Balance as at 31 March 2024
18,559
19,009
(29,512)
19,248
3,061
35
(50)
30,350
11,347
41,697
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
400
CORPORATE OVERVIEW
STATUTORY REPORTS
401
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
1
Group overview
Vedanta Limited (“the Company”) (CIN:
L13209MH1965PLC291394) and its consolidated
subsidiaries (collectively, the “Group”) is a diversified
natural resource group engaged in exploring, extracting
and processing minerals and oil and gas. The Group
engages in the exploration, production and sale of
zinc, lead, silver, copper, aluminium, iron ore and oil
and gas and 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 office of the Company is situated at 1st 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 61.95%
(31 March 2023: 68.11%) of the Company's equity as at
31 March 2024.
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 mine
and refinery in Namibia operated through THL Zinc
Namibia Holdings (Proprietary) Limited (“Skorpion”),
Lisheen mine in Ireland operated through Vedanta
Lisheen Holdings Limited (“Lisheen”) (Lisheen mine
ceased operations in December 2015) and Black
Mountain Mining (Proprietary) Limited (“BMM”),
whose assets include the operational Black Mountain
mine and the Gamsberg mine project located in
South Africa.
•
The Group’s oil and gas business is owned and
operated by the Company and its subsidiary, Cairn
Energy Hydrocarbons Limited and consists of
exploration and development and production of oil
and gas.
•
The Group’s iron ore business is owned by the
Company, and by 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 year
ended 31 March 2023, the Government of Goa had
initiated auction of mines in which the Company
had participated. The Company was declared as
the principal bidder for the Bicholim mine and
had received the Letter of Intent (LOI) from the
Government of Goa. During the current year, the
Company has received environment clearance from
Ministry of Environment, Forest and Climate Change
("MoEFCC") and Consent to Operate ("CTO") from Goa
State Pollution Board followed by commencement of
operations in March 2024.
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 previous year, WCL had signed a
Memorandum of Understanding with the Government
of Liberia to re-start its mining operations in Liberia
post which commercial production and shipments of
saleable ore were commenced.
•
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
want of further clarification and consequently the
operations were suspended. The Company has
filed an appeal with TNPCB Appellate authority
against the said order. During the pendency of the
appeal, TNPCB through its order dated 23 May 2018
ordered for disconnection of electricity supply and
closure of copper smelter plant. Post such order,
the state government on 28 May 2018 ordered the
permanent closure of the plant. The Company has
filed a writ petition before 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 it dismissed all the Writ Petitions filed by 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"). During the year ended 31 March 2024, the
Hon'ble Supreme Court, after hearing the Parties to
the proceedings has dismissed the SLP filed by the
Company vide judgment dated 29 February 2024.
On 01 April 2024, the Company preferred a review
petition before the Hon’ble Supreme Court. (Refer
note 3(c)(A)(iii).
Further, the Company’s copper business includes
refinery and rod plant at Silvassa consisting of
a 2,45,000 MT of blister/ secondary material
processing plant, a 2,16,000 TPA copper refinery
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 a precious
metal refinery and copper rod plant in Fujairah, UAE
through its subsidiary Fujairah Gold FZC and the Mt.
Lyell copper mine in Tasmania, Australia through its
subsidiary, CMT. 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. In November 2023, the Group
has divested its 100% equity ownership in CMT at
consideration agreed as per above arrangement
[Refer note 4(D)].
•
The Group’s Aluminium business is owned and
operated by the Company and by Bharat Aluminium
Company Limited (“BALCO”). The aluminium
operations include a refinery and captive power plant
at Lanjigarh, smelter and captive power plants at
Jharsuguda and coal mines at Jamkhani, all situated
in the State of Odisha in Eastern India. BALCO’s
partially integrated aluminium operations comprise
two bauxite mines, two coal mines, 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, and its wholly owned subsidiaries,
Talwandi Sabo Power Limited (“TSPL”) and
Meenakshi Energy Limited ("Meenakshi"), 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 and a 1,200 MW (two units of 600 MW each)
thermal coal-based power plant, in the State of
Chhattisgarh in Eastern India. Talwandi Sabo Power
Limited (“TSPL”) power operations include 1,980 MW
(three units of 660 MW each) thermal coal- based
commercial power facilities. Meenakshi power
operations include 1,000 MW coal-based power
plant (two units of 150 MW each and two units of
350 MW each), located at Nellore, Andhra Pradesh.
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 and also deals in mining of iron ore and
its supply.
The Group’s other business also include Vizag
General Cargo Berth Private Limited (“VGCB”). Vizag
port project includes mechanisation of coal handling
facilities and upgradation of general cargo berth for
handling coal at the outer harbour of Visakhapatnam
Port on the east coast of India. VGCB commenced
operations in the fourth quarter of fiscal 2013. The
Group’s other business also include AvanStrate Inc.
(“ASI”), Vedanta Semiconductors Private Limited
("VSPL”), Vedanta Displays Limited (“VDL”), 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. The Company has
acquired Vedanta Semiconductors Private Limited
402
403
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
and Vedanta Displays Limited during the current year
for manufacturing semiconductor and display glass
panels, respectively. 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
mines 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
These consolidated financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies
(Indian Accounting Standards) Rules, 2015, presentation
requirement of Division II of schedule III 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.
These consolidated financial statements have been
prepared in accordance with the accounting policies, set
out below and were consistently applied to all periods
presented unless otherwise stated.
The Group has identified 12 months as its operating
cycle for the classification of assets and liabilities into
current and non-current.
These consolidated financial statements are approved
for issue by the Board of Directors on 25 April 2024.
The revision to these consolidated financial 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.
All financial information presented in Indian Rupees
has been rounded off to the nearest crore except when
indicated otherwise. Amounts less than C 0.50 crore
have been presented as “0”.
The consolidated financial statements have been
prepared on a going concern basis using historical cost
convention and on an accrual method of accounting,
except for certain financial assets and liabilities
which are measured at fair value as explained in the
accounting policies below. The Group has availed long
term debt (refer note 19A and 19B). In the unlikely
event Vedanta Resources Limited (together with its
subsidiaries) ceases to hold more than 50.1% stake in
the Company and its certain subsidiaries, C 49,456 Crore
of the Group's outstanding long-term debt would
become repayable on demand. Management basis
assessment of free cash flows, its ability to refinance
existing debt and other strategic initiatives, considers
the same as remote.
3(a) Material accounting policies
(A) Basis of Consolidation
i)
Subsidiaries:
The consolidated financial statements incorporate the
results of the Company and all its subsidiaries (the
"Group"), being the entities that it controls.
The financial statements of subsidiaries are prepared
for the same reporting year as the parent company.
Where necessary, adjustments are made to the financial
statements of subsidiaries to align the accounting
policies in line with accounting policies of the Group.
For non-wholly owned subsidiaries, a share of the
profit/(loss) for the financial year and net assets is
attributed to the non-controlling interests as shown
in the consolidated statement of profit and loss and
consolidated balance sheet.
Liability for put option issued to non-controlling interests
which do not grant present access to ownership interest
to the Group is recognised at present value of the
redemption amount and is reclassified from equity. At
the end of each reporting period, the non-controlling
interests subject to put option is derecognised and
the difference between the amount derecognised and
present value of the redemption amount, which is
recorded as a financial liability, is accounted for as an
equity transaction.
For acquisitions of additional interests in subsidiaries,
where there is no change in control, the Group
recognises a reduction to the non-controlling interest
of the respective subsidiary with the difference between
this figure and the cash paid, inclusive of transaction
fees, being recognised in equity. The results of
subsidiaries acquired or disposed off during the year
are included in the consolidated statement of profit and
loss from the effective date of acquisition or up to the
effective date of disposal, as appropriate.
Intra-Group balances and transactions, and any
unrealised profit arising from intra-Group transactions,
are eliminated. Unrealised losses are eliminated unless
costs cannot be recovered.
ii)
Joint arrangements
A Joint arrangement is an arrangement of which two
or more parties have joint control. Joint control is
considered when there is contractually agreed sharing
of control of an arrangement, which exists only when
decisions about the relevant activities require the
unanimous consent of the parties sharing control.
Investments in joint arrangements are classified as
either joint operations or joint venture. The classification
depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint
arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations
for the liabilities, relating to the arrangement. A joint
venture is a joint arrangement whereby, the parties that
have joint control of the arrangement have rights to the
net assets of the arrangement.
The Group has both joint operations and joint ventures.
Joint operations
The Group has joint operations within its Oil and gas
segment. It participates in several unincorporated
joint operations which involve the joint control of
assets used in oil and gas exploration and producing
activities. The Group accounts for its share of assets,
liabilities, income and expenditure of joint operations
in which the Group holds an interest. Liabilities in
unincorporated joint operations, where the Group is the
operator, is accounted for at gross values (including
share of other partners) with a corresponding receivable
from the venture partner. These have been included
in the consolidated financial statements under the
appropriate headings.
Details of joint operations are set out in Note 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
Investments in associates are accounted for using the
equity method (see (iv) below).
iv)
Equity method of accounting
Under the equity method of accounting applicable
for investments in associates and joint ventures,
investments are initially recorded at the cost to the
Group and then, in subsequent periods, the carrying
value is adjusted to reflect the Group's share of the
post-acquisition profits or losses of the investee, and
the Group's share of other comprehensive income of
the investee, other changes to the investee's net assets
and is further adjusted for impairment losses, if any.
Dividend received or receivable from associates and
joint-ventures are recognised as a reduction in carrying
amount of the investment.
The consolidated statement of profit and loss include
the Group's share of investee's results, except where
the investee is generating losses, share of such losses
in excess of the Group's interest in that investee are not
recognised. Losses recognised under the equity method
in excess of the Group's investment in ordinary shares
are applied to the other components of the Group's
interest that forms part of Group's net investment in
the investee in the reverse order of their seniority (i.e.,
priority in liquidation).
If the Group's share of losses in an associate or joint
venture equals or exceeds its interests in the associate
or joint venture, the Group discontinues the recognition
of further losses. Additional losses are provided for,
only to the extent that the Group has incurred legal or
constructive obligations or made payments on behalf of
the associate/joint venture.
Unrealised gains arising from transactions with
associates and joint ventures are eliminated against the
investment to the extent of the Group’s interest in these
entities. Unrealised losses are eliminated in the same
way as unrealised gains, but only to the extent that there
is no evidence of impairment of the asset transferred.
Accounting policies of equity accounted investees is
changed where necessary to ensure consistency with
the policies adopted by the Group.
The carrying amount of equity accounted investments
are tested for impairment in accordance with the policy
described in Note 3(a)(G) below.
(B) Business combination
Business combinations are accounted for under
the acquisition method. The acquiree's identifiable
assets, liabilities and contingent liabilities that meet
the conditions for recognition under Ind AS 103
‘Business Combinations’ are recognised at their fair
value at the acquisition date, except certain assets
and liabilities required to be measured as per the
applicable standards.
Excess of fair value of purchase consideration and
the acquisition date non-controlling interest over
the acquisition date fair value of identifiable assets
acquired and liabilities assumed is recognised as
404
405
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
goodwill. Goodwill arising on acquisitions is reviewed
for impairment annually. Where the fair values of the
identifiable assets and liabilities exceed the purchase
consideration, the Group re-assesses whether it has
correctly identified all of the assets acquired and all
of the liabilities assumed and reviews the procedures
used to measure the amounts to be recognised at the
acquisition date. If the reassessment still results in
an excess of the fair value of net assets acquired over
the aggregate consideration transferred, then the gain
is recognised in other comprehensive income and
accumulated in equity as capital reserve. However,
if there is no clear evidence of bargain purchase, the
Group recognises the gain directly in equity as capital
reserve, without routing the same through other
comprehensive income.
Where it is not possible to complete the determination
of fair values by the date on which the first post-
acquisition financial statements are approved, a
provisional assessment of fair value is made and any
adjustments required to those provisional fair values are
finalised within 12 months of the acquisition date.
Those provisional amounts are adjusted through
goodwill during the measurement period, or additional
assets or liabilities are recognised, to reflect new
information obtained about facts and circumstances
that existed at the acquisition date that, if known, would
have affected the amounts recognised at that date.
These adjustments are called as measurement period
adjustments. The measurement period does not exceed
twelve months from the acquisition date.
Any non-controlling interest in an acquiree is measured
at fair value or at the non-controlling interest's
proportionate share of the acquiree's net identifiable
assets. This accounting choice is made on a transaction
by transaction basis.
Acquisition expenses are charged to the consolidated
statement of profit and loss in the periods in which the
costs are incurred and the services are received except
costs to issue debt or equity securities which shall
be recognised in accordance with Ind AS 32 and Ind
AS 109.
If the Group acquires a group of assets in a company
that does not constitute a business combination in
accordance with Ind AS 103 ‘Business Combinations’,
the cost of the acquired group of assets is allocated to
the individual identifiable assets acquired based on their
relative fair value.
Common control transactions
A business combination involving entities or businesses
under common control is a business combination in
which all of the combining entities or businesses are
ultimately controlled by the same party or parties both
before and after the business combination and the
control is not transitory. The transactions between
entities under common control are specifically covered
by Ind AS 103. Such transactions are accounted for
using the pooling-of-interest method. The assets
and liabilities of the acquired entity are recognised at
their carrying amounts recorded in the parent entity's
consolidated financial statements with the exception
of certain income tax and deferred tax assets. No
adjustments are made to reflect fair values, or recognise
any new assets or liabilities. The only adjustments that
are made are to harmonise accounting policies.
The components of equity of the acquired companies
are added to the same components within Group equity.
The difference, if any, between the amounts recorded as
share capital issued plus any additional consideration
in the form of cash or other assets and the amount of
share capital of the transferor is transferred to capital
reserve and is presented separately from other capital
reserves. The company's shares issued in consideration
for the acquired companies are recognised at face
value from the moment the acquired companies are
included in these financial statements and the financial
statements of the commonly controlled entities would
be combined, retrospectively, as if the transaction
had occurred at the beginning of the earliest reporting
period presented. However, the prior year comparative
information is only adjusted for periods during which
entities were under common control.
(C) Revenue recognition
•
Sale of goods/rendering of services (Including
Revenue from contracts with customers)
The Group’s revenue from contracts with customers
is mainly from the sale of copper, aluminium, iron ore,
zinc, oil and gas, power, steel, glass substrate and port
operations. Revenue from contracts with customers
is recognised when control of the goods or services is
transferred to the customer 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
Metal Exchange (LME) and crude index, as specified
in the contract. Revenue in respect of such contracts
is recognised when control passes to the customer
and is measured at the amount the entity expects to
be entitled – being the estimate of the price expected
to be received at the end of the measurement period.
Post transfer of control of goods, provisional pricing
features are accounted in accordance with Ind AS 109
‘Financial Instruments’ rather than Ind AS 115 ‘Revenue
from contracts with customers’ and therefore the Ind AS
115 rules on variable consideration do not apply. These
‘provisional pricing’ adjustments, i.e., the consideration
adjusted post transfer of control are included in total
revenue from operations on the face of the consolidated
statement of profit and loss and disclosed by way of
note to the financial statements. Final settlement of the
price is based on the applicable price for a specified
future period. The Group’s provisionally priced sales
are marked to market using the relevant forward prices
for the future period specified in the contract and is
adjusted in revenue.
Revenue from oil, gas and condensate sales represent
the Group’s share in the revenue from sale of such
products, by the joint operations, and is recognised as
and when control in these products gets transferred to
the customers. In computing its share of revenue, the
Group excludes government’s share of profit oil which
gets accounted for when the obligation in respect of the
same arises.
Revenue from sale of power is recognised when
delivered and measured based on rates as per bilateral
contractual agreements with buyers and at a rate
arrived at based on the principles laid down under the
relevant Tariff Regulations as notified by the regulatory
bodies, as applicable.
Where the Group acts as a port operator, revenues
relating to operating and maintenance phase of the port
contract are recognised when the services are rendered
at the amount that Group expects to be entitled to for
the services provided.
If a customer pays consideration before the Group
transfers goods or services to the customer, a contract
liability is recognised when the payment is received.
The advance payments received plus a specified rate
of return/ discount, at the prevailing market rates, is
settled by supplying respective goods over a period
of up to twenty four months under an agreed delivery
schedule as per the terms of the respective agreements.
As these are contracts that the Group expects, and has
the ability, to fulfil through delivery of a non-financial
item, these are presented as advance from customers
and are recognised as revenue as and when control of
respective commodities is transferred to customers
under the agreements. The fixed rate of return/discount
is treated as finance cost. The portion of the advance
where either the Group does not have a unilateral right
to defer settlement beyond 12 months or expects
settlement within 12 months from the balance sheet
date is classified as current liability.
•
Interest income
Interest income from debt instruments is recognised
using the effective interest rate method.
•
Dividends
Dividend income is recognised in the consolidated
statement of profit and loss only when the right to
receive payment is established, provided it is probable
that the economic benefits associated with the dividend
will flow to the Group, and the amount of the dividend
can be measured reliably.
(D) Property, Plant and Equipment
i)
Mining properties and leases
When a decision is taken that a mining property is
viable for commercial production (i.e., when the Group
determines that the mining property will provide
sufficient and sustainable return relative to the risks
and the Group decided to proceed with the mine
development), all further pre-production primary
development expenditure other than that on land,
buildings, plant, equipment and capital work in progress
is capitalised as property, plant and equipment under
the heading “Mining properties and leases” together
with any amount transferred from “Exploration and
evaluation” assets. The costs of mining properties and
leases include the costs of acquiring and developing
mining properties.
The stripping cost incurred during the production phase
of a surface mine is deferred to the extent the current
period stripping cost exceeds the average period
stripping cost over the life of mine and recognised as
an asset if such cost provides a benefit in terms of
improved access to ore in future periods and certain
criteria are met. When the benefit from the stripping
costs are realised in the current period, the stripping
costs are accounted for as the cost of inventory. If
the costs of inventory produced and the stripping
activity asset are not separately identifiable, a relevant
production measure is used to allocate the production
stripping costs between the inventory produced and the
stripping activity asset. The Group uses the expected
406
407
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
volume of waste compared with the actual volume
of waste extracted for a given value of ore/ mineral
production for the purpose of determining the cost of
the stripping activity asset.
Deferred stripping costs are included in mining
properties within property, plant and equipment and
disclosed as a part of mining properties. After initial
recognition, the stripping activity asset is depreciated on
a unit of production method over the expected useful life
of the identified component of the ore body.
In circumstances where a mining property is abandoned,
the cumulative capitalised costs relating to the property
are written off in the period in which it occurs, i.e., when
the Group determines that the mining property will not
provide sufficient and sustainable returns relative to
the risks and the Group decides not to proceed with the
mine development.
Commercial reserves are proved and probable reserves
as defined by the ‘JORC’ Code, ‘MORC’ code or
‘SAMREC’ Code. Changes in the commercial reserves
affecting unit of production calculations are dealt with
prospectively over the revised remaining reserves.
ii)
Oil and gas assets- (developing/producing assets)
For oil and gas assets, a "successful efforts" based
accounting policy is followed. Costs incurred prior
to obtaining the legal rights to explore an area are
expensed immediately to the consolidated statement of
profit and loss.
All costs incurred after the technical feasibility and
commercial viability of producing hydrocarbons has
been demonstrated are capitalised within property,
plant and equipment - development/producing assets
on a field-by-field basis. Subsequent expenditure is
capitalised only where it either enhances the economic
benefits of the development/producing asset or replaces
part of the existing development/producing asset. Any
remaining costs associated with the part replaced
are expensed.
Net proceeds from any disposal of development/
producing assets are credited against the previously
capitalised cost. A gain or loss on disposal of a
development/producing asset is recognised in the
consolidated statement of profit and loss to the
extent that the net proceeds exceed or are less than
the appropriate portion of the net capitalised costs of
the asset.
iii)
Other property, plant and equipment
The initial cost of property, plant and equipment
comprises its purchase price, including import duties
and non-refundable purchase taxes, and any directly
attributable costs of bringing an asset to working
condition and location for its intended use. It also
includes the initial estimate of the costs of dismantling
and removing the item and restoring the site on which it
is located.
Subsequently, property plant and equipment is
measured at cost less accumulated depreciation and
accumulated impairment losses, if any.
If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components)
of property, plant and equipment. All other expenses
on existing property, plant and equipment, including
day-to-day repair and maintenance expenditure and
cost of replacing parts, are charged to the consolidated
statement of profit and loss for the period during which
such expenses are incurred.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset or disposal. Gains and losses
on disposal of an item of property, plant and equipment
is included in the statement of profit and loss when the
asset is derecognised. Major inspection and overhaul
expenditure is capitalised, if the recognition criteria
are met.
iv)
Assets under construction
Assets under construction are capitalised in the assets
under 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 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.
Capital work in progress is carried at cost less
accumulated impairment losses, if any.
v)
Depreciation, depletion and amortisation expense
Mining properties and other assets in the course of
development or construction and freehold land and
goodwill are not depreciated or amortised.
•
Mining properties
The capitalised mining properties are amortised on
a unit-of-production basis over the total estimated
remaining commercial proved and probable reserves of
each property or group of properties and are subject to
impairment review. Costs used in the unit of production
calculation comprise the net book value of capitalised
costs plus the estimated future capital expenditure
required to access the commercial reserves. Changes in
the estimates of commercial reserves or future capital
expenditure are dealt with prospectively.
•
Oil and gas producing facilities
All expenditures carried within each field are amortised
from the commencement of production on a unit
of production basis, which is the ratio of oil and gas
production in the period to the estimated quantities
of depletable reserves at the end of the period plus
the production in the period, generally on a field-
by-field basis or group of fields which are reliant on
common infrastructure.
Depletable reserves are proved reserves for acquisition
costs and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. These
assets are depleted within each cost centre. Reserves
for this purpose are considered on working interest
basis which are reassessed atleast annually. Impact of
changes to reserves are accounted for prospectively.
•
Other assets
Depreciation on other Property, plant and equipment
is calculated using the straight-line method (SLM) to
allocate their cost, net of their residual values, over their
estimated useful lives (determined by the management)
as given below.
Management's assessment takes into account, inter
alia, the nature of the assets, the estimated usage of
the assets, the operating conditions of the assets, past
history of replacement and maintenance support.
Estimated useful life of assets are as follows:
Asset
Useful life (in years)
Buildings (Residential; factory etc.)
3-60
Plant and equipment
15-40
Railway siding
15
Office equipment
3-6
Furniture and fixture
8-10
Vehicles
8-10
Major inspection and overhaul costs are depreciated
over the estimated life of the economic benefit to be
derived from such costs. The carrying amount of the
remaining previous overhaul cost is charged to the
consolidated statement of profit and loss if the next
overhaul is undertaken earlier than the previously
estimated life of the economic benefit.
The Group reviews the residual value and useful life of
an asset at least at each financial year-end. The Group
considers climate-related matters, including physical
and transition risks in its assessment of expected useful
lives and estimated residual values. 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, and
also controls any significant residual interest in the
infrastructure such as property, plant and equipment,
irrespective whether the infrastructure is existing
infrastructure of the grantor or the infrastructure is
constructed or purchased by the Group as part of the
service concession arrangement. Such an intangible
asset is recognised by the Group initially at cost
determined as the fair value of the consideration
received or receivable for the construction service
delivered and is capitalised when the project is complete
in all respects. Port concession rights are amortised on
straight line basis over the balance of license period.
The concession period is 30 years from the date of the
award. Any addition to the port concession rights are
measured at fair value on recognition. Port concession
rights also include certain property, plant and equipment
in accordance with Appendix C of Ind AS 115 “service
concession arrangements.
Mining rights include the cost incurred for mines such
as stamp duty, registration fees and other such costs
together with cost incurred on development of mining
rights and other related cost of mines transferred from
“Exploration intangible assets under development”.
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
408
409
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 recognised in the consolidated
statement of profit and loss when the asset
is derecognised.
The amortisation period and the amortisation method
are reviewed at least at each financial year end. If
the expected useful life of the asset is different from
previous estimates, the change is accounted for
prospectively as a change in accounting estimate.
(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
prior to reclassification.
Exploration expenditure includes all direct and allocated
indirect expenditure associated with finding specific
mineral resources which includes depreciation and
applicable operating costs of related support equipment
and facilities and other costs of exploration activities:
•
Acquisition costs - costs associated with acquisition
of licenses and rights to explore, including related
professional fees.
•
General exploration costs - costs of surveys and
studies, rights of access to properties to conduct
those studies (e.g., costs incurred for environment
clearance, defence clearance, etc.), and salaries and
other expenses of geologists, geophysical crews and
other personnel conducting those studies.
•
Costs of exploration drilling and equipping
exploration and appraisal wells.
Exploration expenditure incurred in the process of
determining oil and gas exploration targets is capitalised
within "Exploration and evaluation assets" (intangible
assets) and subsequently allocated to drilling activities.
Exploration drilling costs are initially capitalised on a
well-by-well basis until the success or otherwise of the
well has been established. The success or failure of
each exploration effort is judged on a well-by-well basis.
Drilling costs are written off on completion of a well
unless the results indicate that hydrocarbon reserves
exist and there is a reasonable prospect that these
reserves are commercial.
Following appraisal of successful exploration wells,
if commercial reserves are established and technical
feasibility for extraction demonstrated, then the related
capitalised exploration costs are transferred into
a single field cost centre within property, plant and
equipment - development/producing assets (oil and
gas properties) after testing for impairment. Where
results of exploration drilling indicate the presence
of hydrocarbons which are ultimately not considered
commercially viable, all related costs are written off to
the consolidated statement of profit and loss.
Expenditure incurred on the acquisition of a license
interest is initially capitalised on a license-by-license
basis. Costs are held, undepleted, within exploration
and evaluation assets until such time as the exploration
phase on the license area is complete or commercial
reserves have been discovered.
Net proceeds from any disposal of an exploration asset
are initially credited against the previously capitalised
costs. Any surplus/ deficit is recognised in the
consolidated statement of profit and loss.
(G) Impairment of non-financial assets
Impairment charges and reversals are assessed at the
level of cash-generating units.
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.
Fair value less costs of disposal is the price that would
be received to sell the asset in an orderly transaction
between market participants and does not reflect the
effects of factors that may be specific to the Group
and not applicable to entities in general. Fair value for
mineral and oil and gas assets is generally determined
as the present value of the estimated future cash flows
expected to arise from the continued use of the asset,
including any expansion prospects, and its eventual
disposal, using assumptions that an independent
market participant may take into account. These cash
flows are discounted at an appropriate post tax discount
rate to arrive at the net present value.
If any such indication exists 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.
Value in use is determined as the present value of the
estimated future cash flows expected to arise from
the continued use of the asset in its present form and
its eventual disposal. The cash flows are discounted
using a pre-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the asset for which estimates of
future cash flows have not been adjusted. Value in use
is determined by applying assumptions specific to the
Group's continued use and cannot take into account
future development. These assumptions are different
to those used in calculating fair value and consequently
the value in use calculation is likely to give a different
result to a fair value calculation. The Group assesses
whether climate risks, including physical risks and
transition risks could have a significant impact. If so,
these risks are included in the cash-flow forecasts in
assessing value in use amounts.
The carrying amount of the CGU is determined on a
basis consistent with the way the recoverable amount
of the CGU is determined. The carrying value is net
of deferred tax liability recognised in the fair value of
assets acquired in the business combination.
If the recoverable amount of an asset or CGU is
estimated to be less than its carrying amount, the
carrying amount of the asset or CGU is reduced to its
recoverable amount. An impairment loss is recognised
in the consolidated statement of profit and loss.
Any reversal of the previously recognised impairment
loss is limited to the extent that the asset's carrying
amount does not exceed the carrying amount that
would have been determined if no impairment loss had
previously been recognised except if initially attributed
to goodwill.
Exploration and evaluation intangible assets:
In assessing whether there is any indication
that an exploration and evaluation asset may be
impaired, the Group considers, as a minimum, the
following indicators:
•
the period for which the Group has the right to
explore in the specific area has expired during the
period or will expire in the near future, and is not
expected to be renewed;
•
substantive expenditure on further exploration for
and evaluation of mineral resources in the specific
area is neither budgeted nor planned;
•
exploration for and evaluation of mineral resources
in the specific area have not led to the discovery of
commercially viable quantities of mineral resources
and the Group has decided to discontinue such
activities in the specific area;
•
sufficient data exist to indicate that, although a
development in the specific area is likely to proceed,
the carrying amount of the exploration and evaluation
asset is unlikely to be recovered in full from
successful development or by sale; and
•
reserve information prepared annually by
external experts.
When a potential impairment is identified, an
assessment is performed for each area of interest
in conjunction with the group of operating assets
(representing a cash-generating unit) to which the
exploration and evaluation assets is attributed.
Exploration areas in which reserves have been
discovered but require major capital expenditure before
production can begin, are continually evaluated to
ensure that commercial quantities of reserves exist or
to ensure that additional exploration work is underway
or planned. To the extent that capitalised expenditure is
no longer expected to be recovered, it is charged to the
consolidated statement of profit and loss.
(H) Financial instruments
(i)
Financial assets - recognition and subsequent
measurement
All financial assets are recognised initially at fair value
plus, in the case of financial assets not recorded at fair
value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Purchases or sales of financial assets that require
delivery of assets within a time frame established by
regulation or convention in the market place (regular way
trades) are recognised on the trade date, i.e., the date that
the Group commits to purchase or sell the asset.
410
411
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Trade receivables that do not contain a significant
financing component are measured at transaction price
as per Ind AS 115.
For purposes of subsequent measurement, financial
assets are classified in four categories:
•
Financial assets at amortised cost
After initial measurement, such financial assets are
subsequently measured at amortised cost using
the Effective Interest Rate (EIR) method.
•
Financial assets at fair value through other
comprehensive income (FVOCI)
Debt instruments included within the FVOCI
category are measured initially as well as at each
reporting date at fair value. Fair value movements
are recognised in other comprehensive income
(OCI). However, interest income, impairment losses
and reversals and foreign exchange gain or loss are
recognised in the consolidated statement of profit
and loss. On derecognition of the asset, cumulative
gain or loss previously recognised in other
comprehensive income is reclassified from the
equity to consolidated statement of profit and loss.
Interest earned whilst holding fair value through
other comprehensive income debt instrument is
reported as interest income using the EIR method.
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 no recycling
of the amounts from OCI to the consolidated
statement of profit and loss, even on sale of
investment. However, the Company may transfer
the cumulative gain or loss within equity.
•
Financial assets at fair value through profit or loss
(FVTPL)
Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost or
as FVOCI, is classified as at FVTPL.
In addition, the Group may elect to designate a
debt instrument, which otherwise meets amortised
cost or FVOCI criteria, as at FVTPL. However,
such election is allowed only if doing so reduces
or eliminates a measurement or recognition
inconsistency (referred to as 'accounting
mismatch'). The Group has not designated any
debt instrument at FVTPL.
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 to which Ind AS 103 applies are
classified as at FVTPL.
Further, the provisionally priced trade receivables
are marked to market using the relevant forward
prices for the future period specified in the contract
and is adjusted in revenue.
(ii) Impairment of financial assets
The Group follows 'simplified approach' for recognition
of impairment loss allowance on trade receivables,
contract assets and lease receivables. The application of
simplified approach does not require the Group to track
changes in credit risk. Rather, it recognises impairment
loss allowance based on lifetime ECLs at each reporting
date, right from its initial recognition.
At each reporting date, for recognition of impairment
loss on other financial assets and risk exposure, the
Group determines whether there has been a significant
increase in the credit risk since initial recognition. If
credit risk has not increased significantly, 12-month ECL
is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If,
in a subsequent period, credit quality of the instrument
improves such that there is no longer a significant
increase in credit risk since initial recognition, then the
Group reverts to recognising impairment loss allowance
based on 12-month ECL.
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.
b)
Debt instruments measured at FVOCI: Since
financial assets are already reflected at fair value,
impairment allowance is not further reduced from
its value. Rather, ECL amount is presented as
'accumulated impairment amount' in the OCI.
For assessing increase in credit risk and impairment
loss, the Group combines financial instruments on
the basis of shared credit risk characteristics with the
objective of facilitating an analysis that is designed to
enable significant increases in credit risk to be identified
on a timely basis.
The Group does not have any purchased or
originated credit-impaired (POCI) financial assets,
i.e., financial assets which are credit impaired on
purchase/ origination.
(iii) Financial liabilities – Recognition and Subsequent
measurement
Financial liabilities are classified, at initial recognition,
as financial liabilities at fair value through profit or loss,
or as loans and borrowings, payables, or as derivatives
designated as hedging instruments in an effective
hedge, as appropriate.
All financial liabilities are recognised initially at fair value,
and in the case of financial liabilities at amortised cost,
net of directly attributable transaction costs.
The Group's financial liabilities include trade and other
payables, loans and borrowings including financial
guarantee contracts and derivative financial instruments.
The measurement of financial liabilities depends on their
classification, as described below:
•
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading and financial
liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are
classified as held for trading if they are incurred for the
purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered
into by the Group that are not designated as hedging
instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified
as held for trading unless they are designated as
effective hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the consolidated statement of profit
and loss.
Financial liabilities designated upon initial recognition at
fair value through profit or loss are designated as such
at the initial date of recognition, and only if the criteria
in Ind AS 109 are satisfied. For liabilities designated as
FVTPL, fair value gains/ losses attributable to changes
in own credit risk are recognised in OCI. These gains/
losses are not subsequently transferred to consolidated
income statement. However, the Group may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in
the consolidated statement of profit and loss. The Group
has not designated any financial liability at fair value
through profit or loss.
Further, the provisionally priced trade payables are
marked to market using the relevant forward prices for
the future period specified in the contract.
•
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
consolidated statement of profit and loss when the
liabilities are derecognised as well as through the EIR
amortisation process.
(iv) Financial liabilities - Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms,
or the terms of an existing liability are substantially
modified, such an exchange or modification is treated
as the derecognition of the original liability and the
recognition of a new liability. When a new financial
liability is recognised in place of an existing one,
the difference in the respective carrying amounts is
recognised in the statement of profit and loss.
(v) 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 board of directors
of the Company and final dividend is authorised when
it is approved by the shareholders. A corresponding
amount is recognised directly in equity.
(I) Derivative financial instruments and hedge
accounting
Initial recognition and subsequent measurement
In order to hedge its exposure to foreign exchange,
interest rate, and commodity price risks, the Group
enters into forward, option, swap contracts and
other derivative financial instruments. The Group
does not hold derivative financial instruments for
speculative purposes.
412
413
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Such derivative financial instruments are initially
recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to the consolidated
statement of profit and loss, except for the effective
portion of cash flow hedges, which is recognised in OCI
and later reclassified to the consolidated statement of
profit and loss when the hedge item affects profit or
loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a
non-financial asset or non-financial liability.
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
recognised in the consolidated statement of profit and
loss immediately, together with any changes in the fair
value of the hedged asset or liability that are attributable
to the hedged risk.
When an unrecognised firm commitment is designated
as a hedged item, the subsequent cumulative change
in the fair value of the firm commitment attributable
to the hedged risk is recognised as an asset or liability
with a corresponding gain or loss recognised in the
consolidated statement of profit and loss. Hedge
accounting is discontinued when the group revokes the
hedge relationship, the hedging instrument or hedged
item expires or is sold, terminated, or exercised or no
longer meets the criteria for hedge accounting.
(ii) Cash flow hedges
The effective portion of the gain or loss on the hedging
instrument is recognised in OCI in the cash flow hedge
reserve, while any ineffective portion is recognised
immediately in the consolidated statement of profit
and loss.
Amounts recognised in OCI are transferred to the
consolidated statement of profit and loss when the
hedged transaction affects profit or loss, such as when
the hedged financial income or financial expense is
recognised or when a forecast sale occurs. When the
hedged item is the cost of a non-financial asset or
non-financial liability, the amounts recognised in OCI are
transferred to the initial carrying amount of the non-
financial asset or liability.
If the hedging instrument expires or is sold, terminated
or exercised without replacement or rollover (as part of
the hedging strategy), or if its designation as a hedge
is revoked, or when the hedge no longer meets the
criteria for hedge accounting, any cumulative gain or
loss previously recognised in OCI remains separately
in equity until the forecast transaction occurs or the
foreign currency firm commitment is met.
(J) Leases
The Group assesses at contract inception, all
arrangements to determine whether they are, or contain,
a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration.
The Group as a lessee 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.
The lease payments include fixed payments (and, in
some instances, in-substance fixed payments) less any
lease incentives receivable, variable lease payments that
depend on an index or a rate, and amounts expected
to be paid under residual value guarantees. The lease
payments also include the exercise price of a purchase
option reasonably certain to be exercised by the Group
and payments of penalties for terminating the lease, if
the lease term reflects the Group exercising the option to
terminate. Variable lease payments that do not depend
on an index or a rate are recognised as expenses
(unless they are incurred to produce inventories) in the
period in which the event or condition that triggers the
payment occurs.
In calculating the present value of lease payments,
the Group uses its incremental borrowing rate at the
lease commencement date because the interest rate
implicit in the lease is generally not readily determinable.
After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition,
the carrying amount of lease liabilities is remeasured
if there is a modification, a change in the lease term,
a change in the lease payments (e.g., changes to
future payments resulting from a change in an index
or rate used to determine such lease payments) or a
change in the assessment of an option to purchase the
underlying asset.
The Group’s lease liabilities are 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-
value assets recognition exemption to leases of office
equipment that are considered to be low value. Lease
payments on short-term leases and leases of low-value
assets are recognised as expense on a straight-line
basis over the lease term.
(K) Inventories
Inventories and work-in-progress are valued at the lower
of cost and net realisable value. Cost is determined on
the following basis:
•
Purchased copper concentrate is recorded at cost on
a first-in, first-out (“FIFO”) basis; all other materials
including stores and spares are valued on weighted
average basis except in Oil and Gas business where
stores and spares are valued on FIFO basis;
•
Finished products are valued at raw material cost
plus costs of conversion, comprising labour 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.
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
consolidated statement of profit and loss.
(L) 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.
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.
(M) Taxation
Tax expense represents the sum of current tax and
deferred tax.
Current tax is provided at amounts expected to be paid
(or recovered) using the tax rates and laws that have
been enacted or substantively enacted by the reporting
date and includes any adjustment to tax payable in
respect of previous years.
Subject to the exceptions below, deferred tax is provided,
using the balance sheet method, on all temporary
differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for
financial reporting purposes and on carry forward of
unused tax credits and unused tax losses:
•
tax payable on the future remittance of the past
earnings of subsidiaries where the timing of the
reversal of the temporary differences can be
controlled and it is probable that the temporary
differences will not reverse in the foreseeable future;
•
deferred income tax is not recognised on:
414
415
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
(a) initial recognition as well as on the impairment
of goodwill which is not deductible for tax
purposes; or
(b) initial recognition of an asset or liability in a
transaction that:
(i)
is not a business combination;
(ii) at the time of the transaction, affects neither
the accounting profit nor taxable profit (tax
loss)and
(iii) at the time of the transaction, does not give
rise to equal taxable and deductible temporary
differences; and
•
deferred tax assets are recognised only to the
extent that it is more likely than not that they will
be recovered.
The carrying amount of deferred tax assets is reviewed
at each reporting date and is adjusted to the extent
that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the asset to
be recovered.
Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities
and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Deferred tax is provided on temporary differences
arising on acquisitions that are categorised as Business
Combinations. Deferred tax is recognised at acquisition
as part of the assessment of the fair value of assets and
liabilities acquired. Subsequently deferred tax is charged
or credited in the consolidated statement of profit and
loss/other comprehensive income as the underlying
temporary difference is reversed.
Further, management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and considers whether it is probable that a
taxation authority will accept an uncertain tax treatment.
The Group shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most likely
method or expected value method, depending on which
method predicts better resolution of the treatment.
(N) Retirement benefit schemes
The Group operates or participates in a number of
defined benefits and defined contribution schemes, the
assets of which (where funded) are held in separately
administered funds. For defined benefit schemes, the
cost of providing benefits under the plans is determined
by actuarial valuation each year separately for each plan
using the projected unit credit method by third party
qualified actuaries.
Remeasurement including, effects of asset ceiling and
return on plan assets (excluding amounts included in
interest on the net defined benefit liability) and actuarial
gains and losses arising in the year are recognised in full
in other comprehensive income and are not recycled to
the consolidated statement of profit and loss.
Net interest is calculated by applying a discount rate to
the net defined benefit liability or asset at the beginning
of the period. Defined benefit costs are split into current
service cost, past service cost, net interest expense
or income and remeasurement and gains and losses
on curtailments and settlements. Current service cost
and past service cost are recognised within employee
benefit expense. Net interest expense or income is
recognised within finance costs.
For defined contribution schemes, the amount
charged to the consolidated statement of profit
and loss in respect of pension costs and other post
retirement benefits is the contributions payable in the
year, recognised as and when the employee renders
related services.
(O) Share-based payments
Certain employees (including executive directors) of the
Group receive part of their remuneration in the form of
share-based payment transactions, whereby employees
render services in exchange for shares or rights over
shares (‘equity-settled transactions’).
The cost of equity-settled transactions with employees
is measured at fair value of share awards at the date at
which they are granted. The fair value of share awards
is determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on the
Group’s estimate of shares that will eventually vest.
The estimate of the number of awards likely to vest is
reviewed at each balance sheet date up to the vesting
date at which point the estimate is adjusted to reflect
the current expectations.
The resultant increase in equity is recorded in share-
based payment reserve.
In case of cash-settled transactions, a liability
is recognised for the fair value of cash-settled
transactions. The fair value is measured initially and at
each reporting date up to and including the settlement
date, with changes in fair value recognised in employee
benefits expense. The fair value is expensed over
the period until the vesting date with recognition of a
corresponding liability. The fair value is determined with
the assistance of an external valuer.
(P) Provisions, contingent liabilities and contingent
assets
Provisions represent liabilities for which the amount or
timing is uncertain. Provisions are recognised when the
Group has a present obligation (legal or constructive), as
a result of past events, and it is probable that an outflow
of resources, that can be reliably estimated, will be
required to settle such an obligation.
If the effect of the time value of money is material,
provisions are determined by discounting the expected
future cash flows to net present value using an
appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Unwinding of the discount is recognised in the
consolidated statement of profit and loss as a finance
cost. Provisions are reviewed at each reporting date and
are adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Group
or a present obligation that is not recognised because
it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability
also arises in extremely rare cases where there is a
liability that cannot be recognised because it cannot
be measured reliably. The Group does not recognise
a contingent liability but discloses its existence in the
consolidated balance sheet.
Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefit is probable.
The Group has significant capital commitments in
relation to various capital projects which are not
recognised in the balance sheet.
(Q) Restoration, rehabilitation and environmental
costs
An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
production of a mine or oil fields. Such costs,
discounted to net present value, are provided for and a
corresponding amount is capitalised at the start of each
project, as soon as the obligation to incur such costs
arises. These costs are charged to the consolidated
statement of profit and loss over the life of the operation
through the depreciation of the asset and the unwinding
of the discount on the provision. The cost estimates are
reviewed periodically and are adjusted to reflect known
developments which may have an impact on the cost
estimates or life of operations. The impact of climate-
related matters, such as changes in environmental
regulations and other relevant legislation, is considered
by the Group in estimating the restoration, rehabilitation
and environmental costs. The cost of the related asset
is adjusted for changes in the provision due to factors
such as updated cost estimates, changes to lives of
operations, new disturbance and revisions to discount
rates. The adjusted cost of the asset is depreciated
prospectively over the lives of the assets to which
they relate. The unwinding of the discount is shown
as finance cost in the consolidated statement of profit
and loss.
Costs for the restoration of subsequent site damage,
which is caused on an ongoing basis during production,
are provided for at their net present value and charged
to the consolidated statement of profit and loss
as extraction progresses. Where the costs of site
restoration are not anticipated to be material, they are
expensed as incurred.
(R) 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
environment in which it operates. The financial
statements are presented in Indian rupee (C).
In the financial statements of individual group
companies, transactions in currencies other than the
respective functional currencies are translated into their
functional currencies at the exchange rates ruling at the
date of the transaction. Monetary assets and liabilities
denominated in other currencies are translated into
functional currencies at exchange rates prevailing on
the reporting date. Non-monetary assets and liabilities
denominated in other currencies and measured
416
417
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
at historical cost or fair value are translated at the
exchange rates prevailing on the dates on which such
values were determined.
All exchange differences are included in the
consolidated statement of profit and loss except those
where the monetary item is designated as an effective
hedging instrument of the currency risk of designated
forecasted sales or purchases, which are recognised in
the other comprehensive income.
Exchange differences which are regarded as an
adjustment to interest costs on foreign currency
borrowings, are capitalised as part of borrowing costs in
qualifying assets.
For the purposes of the consolidation of financial
statements, items in the consolidated statement of
profit and loss of those businesses for which the Indian
Rupees is not the functional currency are translated into
Indian Rupees at the average rates of exchange during
the year/ exchange rates as on the date of transaction.
The related consolidated balance sheet is translated
into Indian rupees at the rates as at the reporting
date. Exchange differences arising on translation
are recognised in consolidated statements of other
comprehensive income. On disposal of such entities the
deferred cumulative exchange differences recognised
in equity relating to that particular foreign operation
are recognised in the consolidated statement of profit
and loss.
The Group had applied paragraph 46A of AS 11 under
Previous GAAP. Ind AS 101 gives an option, which
has been exercised by the Group, whereby a first
time adopter can continue its Indian GAAP policy for
accounting for exchange differences arising from
translation of long-term foreign currency monetary
items recognised in the Indian GAAP financial
statements for the period ending immediately before the
beginning of the first Ind AS financial reporting period.
Hence, foreign exchange gain/loss on long-term foreign
currency monetary items recognised upto 31 March
2016 has been deferred/capitalised. Such exchange
differences arising on translation/settlement of long-
term foreign currency monetary items and pertaining to
the acquisition of a depreciable asset are amortised over
the remaining useful lives of the assets.
Exchange differences arising on translation/ settlement
of long-term foreign currency monetary items, acquired
post 01 April 2016, pertaining to the acquisition of a
depreciable asset are charged to the consolidated
statement of profit and loss.
(S) Earnings per share
The Group presents basic and diluted earnings per
share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the period. Diluted EPS is determined by adjusting the
profit or loss attributable to equity shareholders and the
weighted average number of equity shares outstanding
for the effects of all dilutive potential equity shares.
(T) Buyers' Credit/ Suppliers' Credit and vendor
financing
The Group enters into arrangements whereby banks
and financial institutions make direct payments to
suppliers for raw materials and project materials. The
banks and financial institutions are subsequently repaid
by the Group at a later date providing working capital
timing benefits. These are normally settled 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 finance cost. Payments
made by banks and financial institutions to the operating
vendors are treated as a non-cash item and settlement of
operational buyer’s credit/ suppliers’ credit by the Group
is treated as cash flows from operating activity reflecting
the 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
to be financing in nature, and these are presented within
borrowings in the consolidated balance sheet. Payments
made to vendors are treated as cash item and disclosed
as cash flows from operating/ investing activity
depending on the nature of the underlying transaction.
Settlement of dues to banks and financial institution are
treated as cash flows from financing activity.
(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.
Borrowing costs relating to the construction phase of
a service concession arrangement is capitalised as
part of the cost of the intangible asset. Where funds
are borrowed specifically to finance a qualifying capital
project, the amount capitalised represents the actual
borrowing costs incurred. Where surplus funds are
available out of money borrowed specifically to finance
a qualifying capital project, the income generated
from such short-term investments is deducted from
the total capitalised borrowing cost. If any specific
borrowing remains outstanding after the related asset
is ready for its intended use or sale, that borrowing
then becomes part of general borrowing. Where the
funds used to finance a project form part of general
borrowings, the amount capitalised is calculated using a
weighted average of rates applicable to relevant general
borrowings of the Group during the year.
All other borrowing costs are recognised in the
consolidated statement of profit and loss in the year in
which they are incurred.
Capitalisation of interest on borrowings related to
construction or development projects is ceased when
substantially all the activities that are necessary to make
the assets ready for their intended use are complete
or when delays occur outside of the normal course
of business.
(V) Treasury shares
The Group has created an Employee Benefit Trust (EBT)
for providing share-based payment to its employees.
The Group uses EBT as a vehicle for distributing
shares to employees under the employee remuneration
schemes. The EBT buys shares of the company from
the market, for giving shares to employees. The shares
held by EBT are treated as treasury shares.
Own equity instruments that are reacquired (treasury
shares) are recognised at cost and deducted from
equity. No gain or loss is recognised in profit or loss on
the purchase, sale, issue or cancellation of the Group’s
own equity instruments. Any difference between the
carrying amount and the consideration, if reissued, is
recognised in equity. Share options whenever exercised,
would be satisfied with treasury shares.
(W) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank
and on hand and short-term money market deposits
which have maturity of three months or less from
the date of acquisition, that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.
For the purpose of the consolidated statement of cash
flows, cash and cash equivalents consist of cash and
short-term deposits, as defined above.
(X) Exceptional items
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information
allows an understanding of the underlying performance
of the business in the year, so as to facilitate
comparison with prior periods. Also tax charges related
to exceptional items and certain one-time tax effects
are considered exceptional. Such items are material
by nature or amount to the year’s result and require
separate disclosure in accordance with Ind AS.
The determination as to which items should be
disclosed separately requires a degree of judgement.
The details of exceptional items are set out in note 36.
3(b) Application of new and amended standards
(A) The Group has adopted, with effect from 01 April 2023,
the following new and revised standards. Their adoption
has not had any significant impact on the amounts
reported in the consolidated financial statements.
1.
Amendment to Ind AS 1 Presentation of financial
statements: The amendment requires disclosure of
material accounting policies rather than significant
accounting policies.
2.
Amendment to Ind AS 12 Income Taxes: The
amendment clarifies application of initial
recognition exemption to transactions such as
leases and decommissioning obligations.
3.
Amendment to Ind AS 8 Accounting Policies,
Change in Accounting Estimates and Errors:
The amendments clarify the distinction between
changes in accounting estimates, changes in
accounting policies and the correction of errors.
(B) Standards notified but not yet effective
There are no new standards that are notified, but not
yet effective, upto the date of issuance of the Group’s
financial statements.
418
419
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
3(c) Significant accounting estimates and
judgements
The preparation of consolidated financial statements in
conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect
the application of accounting policies and the reported
amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the
date of these consolidated financial statements and
the reported amounts of revenues and expenses for the
years presented. These judgments and estimates are
based on management’s best knowledge of the relevant
facts and circumstances, having regard to previous
experience, but actual results may differ materially from
the amounts included in the financial statements.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and future periods affected.
The information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial 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 Group’s accounting policies on this are set out in
accounting policy above. The amounts for exploration
and evaluation assets represent active exploration
projects. These amounts will be written off to the
consolidated statement of profit and loss as exploration
costs unless commercial reserves are established or the
determination process is not completed and there are
no indications of impairment. The outcome of ongoing
exploration, and therefore whether the carrying value
of exploration and evaluation assets will ultimately be
recovered, is inherently uncertain.
Details of carrying values are disclosed in note 6.
ii)
Recoverability of deferred tax and other income tax
assets
The Group has carry forward tax losses and unabsorbed
depreciation that are available for offset against future
taxable profit. Deferred tax assets are recognised only
to the extent that it is probable that taxable profit will
be available against which the unused tax losses or tax
credits can be utilised. This involves an assessment of
when those assets are likely to reverse, and a judgement
as to whether or not there will be sufficient taxable
profits available to offset the assets. This requires
assumptions regarding future profitability, which
is inherently uncertain. To the extent assumptions
regarding future profitability change, there can be an
increase or decrease in the amounts recognised in
respect of deferred tax assets and consequential impact
in the consolidated statement of profit and loss.
During the year ended 31 March 2024, based on
financial projections and requirements of Ind AS 12, ESL
derecognised deferred tax assets on business losses
amounting to C 309 crore (31 March 2023: C 277 crore).
Post said derecognition, deferred tax assets balance on
carry forward unabsorbed depreciation as at 31 March
2024 is C 2,787 crore, which based on management's
estimate is probable to realise.
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 filed an appeal with
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
by the NGT. The TNPCB had filed an appeal against the
order of the NGT before the Supreme Court of India.
In the meanwhile, the application for renewal of Consent
to Operate (""CTO"") for existing copper smelter was
rejected by TNPCB in April 2018. The Company had
filed an appeal before the TNPCB 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 which were not
in accordance with the procedure prescribed under
applicable laws. Subsequently, the Directorate of
Industrial Safety and Health passed orders dated 30
May 2018, directing the immediate suspension and
revocation of the Factory License and the Registration
Certificate for the existing smelter plant.
The Company appealed this before the NGT. NGT
vide its order on 15 December 2018 had set aside the
impugned orders and directed the TNPCB to pass fresh
orders for renewal of consent and authorisation to
handle hazardous substances, subject to appropriate
conditions for protection of environment in accordance
with law.
The State of Tamil Nadu and TNPCB approached
Supreme Court in Civil Appeals on 02 January 2019
challenging the judgement of NGT dated 15 December
2018 and the previously passed judgement of NGT
dated 08 August 2013. The Supreme Court vide its
judgement dated 18 February 2019 set aside the
judgements of NGT dated 15 December 2018 and 08
August 2013 solely on the basis of maintainability and
directed the Company to file an appeal in High court.
The Company had filed a writ petition before 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 it dismissed all the Writ Petitions
filed by the Company. Thereafter, the Company had
approached the Supreme Court and challenged the said
High Court order by way of a Special Leave
Petition ("SLP").
The Hon'ble Supreme Court, after hearing the parties
to the proceedings had dismissed the SLP filed by the
Company vide judgment dated 29 February 2024. On
01 April 2024, The Company preferred a review petition
before the Hon'ble Supreme Court.
Expansion Project:
Separately, the Company had filed a fresh 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 had delisted the Expansion Project since the
matter was 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 had approached Madras High Court by
way of writ petition challenging the cancellation of lease
deeds by SIPCOT pursuant to which an interim stay
had been granted. The Company had also appealed this
action before the TNPCB Appellate Authority. The matter
has been adjourned until further notice.
As per the Company's assessment, it is in compliance
with the applicable regulations and hence preferred
a review petition before the Hon'ble Supreme Court.
Considering prolonged time of plant closure and
uncertainties around opening of plant due to rejection
of SLP by Hon’ble Supreme Court, the Company has
carried out an impairment assessment, on Tuticorin
plant assets having carrying value of C 1,681 crore
(including PPE, CWIP and inventory) using Depreciated
Replacement Cost / Scrap Value method for PPE
and CWIP, and Net recoverable method for inventory.
Accordingly, impairment on assets of C 746 crore
(including PPE of C 553 crore, CWIP of C 130 crore and
loss on inventory of C 63 crore) has been recorded
during the year ended 31 March 2024.
Property, plant and equipment of C 432 crore (31 March
2023: C 1,033 crore) and inventories of C 217 crore
(31 March 2023: C 269 crore), pertaining to existing and
expansion plant, could not be physically verified, anytime
during the year, as the access to the plant is presently
restricted. However, any difference between book and
physical quantities is unlikely to be material.
(iv) ESL, had filed application for renewal of CTO on
24 August 2017 for the period of five years which was
denied by Jharkhand State Pollution Control Board
("JSPCB") on 23 August 2018, as 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 matter for final
hearing. ESL urgently filed a petition 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 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
420
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 2021 in
a Public Interest Litigation filed against the Standard
Operating Procedure which was issued by the MoEFCC
for regularisation 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 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 C 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 C 7 crore was provided
against final order relating to wildlife conservation plan
received during the year ended 31 March 2022.
On 05 June 2023, MoEFCC revoked the FC
Stage-I against which ESL has written a letter for
reconsideration. Against the revocation, the State Govt
of Jharkhand has also submitted its request letter to
MoEFCC to reconsider its decision and grant some more
time. Referring to the State’s letter, MoEFCC has issued
a letter dated 18 August 2023 to the Principal Secretary
(Forest), Jharkhand to submit the compliance status
report, which was submitted on 17 November 2023
with positive remarks. Next date of hearing is yet to be
scheduled. Management believes no further provision
is required.
(v) Oil and Gas reserves
Significant technical and commercial judgements
are required to determine the Company’s estimated
oil and natural gas reserves. Reserves considered for
computing depletion are proved reserves for acquisition
costs and proved and developed reserves for successful
exploratory wells, development wells, processing
facilities, distribution assets, estimated future
abandonment cost and all other related costs. Reserves
for this purpose are considered on working interest
basis which are reassessed 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
where indicators of impairment are identified in
accordance with Ind AS 36.
Estimates/
assumptions Basis
Future
production
proved and probable reserves, production
facilities, resource estimates and expansion
projects
Commodity
prices
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.
Discount rates cost of capital risk-adjusted for the risk specific
to the asset/ 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
The Group aims to achieve net carbon neutrality by
2050, and has committed reduction in emission by
25% by 2030 from 2021 baseline, net water positivity
by 2030 as part of its climate risk 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, relate to those areas
of the financial 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 been considered
in the preparation of the financial statements, pertain
to (a) inclusion of capex in cash flow projections,
(b) recoverable amounts of existing assets and (c)
review of estimates of useful lives of property, plant
and equipment.
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, fuel switch, electrification of vehicles and
mining fleet and energy efficiency opportunities. During
the current year, work has progressed towards the
construction of renewable power delivery agreements
in accordance with the Board approved plan (Refer
note 40(A)(c)(iii)). 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 Group has also
taken certain measures towards water management
such as commissioning of sewage treatment plants,
rainwater harvesting, and reducing fresh water
consumption. Collectively these measures have led to
an increase of our water positivity to 0.7 (FY23: 0.63).
These initiatives are aligned with the group's ESG
strategy and no material changes were identified to the
financial statements as a result.
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
significant judgments and key estimates and result in
changes to financial statements and carrying 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 judgements
(i)
Determining whether an arrangement contains a lease:
The Group has ascertained that the Power Purchase
Agreement (PPA) entered into between one of the
subsidiaries and a State grid qualifies to be an operating
lease under Ind AS 116 “Leases”. Accordingly, the
consideration receivable under the PPA relating to
recovery of capacity charges towards capital cost
have been recognised as operating lease rentals and
in respect 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 events
and it is probable that the Group will be required to settle
that obligation.
Where it is management’s assessment that the
outcome cannot be reliably quantified or is uncertain,
the claims are disclosed as contingent liabilities unless
the likelihood of an adverse outcome is remote. Such
liabilities are disclosed in the notes but are not provided
for in the financial statements.
When considering the classification of legal or tax
cases as probable, possible or remote, there is
judgement involved. This pertains to the application
of the legislation, which in certain cases is based
upon management’s interpretation of country specific
applicable law, in particular India, and the likelihood of
settlement. Management uses in-house and external
legal professionals to make informed decision. Although
there can be no assurance regarding the final outcome
of the legal proceedings, the Group does not expect
them to have a materially adverse impact on the
Group’s financial position or profitability. These are set
out in note 40. For other significant litigations where
the possibility of an outflow of resources embodying
economic benefits is remote, refer note 41.
(iii) Revenue recognition and receivable recovery in relation
to the power division
In certain cases, the Group’s power customers are
disputing various contractual provisions of Power
Purchase Agreements (PPA). Significant judgement
is required in both assessing the tariff to be charged
under the PPA in accordance with Ind AS 115 and to
assess the recoverability of withheld revenue currently
accounted for as receivables.
422
423
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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
Acquisitions, Restructuring and Disposal of
Subsidiary
(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 C 565
crore, subject to approval by the National Company Law
Tribunal (“NCLT”). ACPL is building a 1,200 MW (600 MW
X 2) coal-based power plant located at Jhanjgir Champa
district, Chhattisgarh.
The Company filed a resolution application with the
NCLT in July 2022 and further amended the application
in November 2022 praying for merger of ACPL with the
Company. The Company also sought various reliefs
from certain legal and regulatory provisions as part of
these applications. Pending receipt of NCLT approval,
the Group had recorded the above transaction as an
acquisition of property, plant and equipment at the
purchase consideration paid during the year ended 31
March 2023.
The NCLT approved the Company's resolution
application with an appointed date of 21 July 2022
(""appointed date""), in its July 2023 order (""NCLT
Order""), In accordance with applicable Ind AS, the
Company has restated its financial results as at and for
the year ended 31 March 2023 to record this merger.
The Scheme of merger as approved by the NCLT
interalia prescribes the following accounting treatment
in the standalone financials of the Company: the
difference between the fair value at the appointed date
and the carrying value of the assets recorded pursuant
to the amalgamation at their book value arrived at
without considering any impairment/ write-off, would
be written off by debit to the Statement of Profit and
Loss of the Company and credited to the carrying value
of the assets. This would be a permanent write-off of
the carrying value of the assets and not a provision
for diminution in the value of the assets. The charge
on account of write-off of the assets, as mentioned
above, as recorded by the Company will be transferred
from its Retained Earnings to its Capital Reserve and
accordingly, the Capital Reserve will stand diminished by
the said amount.
Pursuant to the NCLT Order, the Company has merged
ACPL by carrying forward the book values of ACPL's
assets of C 8,698 crore (as appearing in ACPL's financial
statements as at 31 March 2022, which were audited
by ACPL's auditors) at the appointed date without
considering any impairment, applying Appendix C of Ind
AS 103 - Business Combinations, instead of recognising
the assets at purchase consideration in accordance
with Ind AS 16. The difference between the values of
assets acquired and the consideration paid was credited
to Other Equity (Capital Reserve). The Company has
written off the consequent loss of C 8,133 crore in the
Statement of Profit and Loss for the year ended 31
March 2023, representing the difference between the
book value of assets and consideration paid. The assets
written off of C 8,133 crore, excluding tax consequences
thereof, has been transferred from ‘Retained Earnings’
to ‘Capital Reserve’, in accordance with the Scheme. The
above is in accordance with the NCLT Order, overriding
the applicable Ind AS requirements.
Consequent to the implementation of the merger, the
carrying values of deferred tax assets (MAT credit) in the
consolidated balance sheet as at 31 March 2023 was
lower by C 1,421 crore with a corresponding reduction
in income tax liabilities by C 979 crore and an increase
in income tax assets by C 442 crore, on account of the
lower MAT charge. These restated balances of 31 March
2023 have been carried to FY 2023-24.
(B) Meenakshi Energy Limited
Meenakshi Energy Limited (“Meenakshi”) is a 1,000
MW coal-based power plant located at Nellore, Andhra
Pradesh. NCLT vide its order dated 10 August 2023
has granted its approval for the Resolution Plan as
submitted by the Company for acquisition of Meenakshi
under Corporate Insolvency Resolution Process in
accordance with the provisions of Insolvency and
Bankruptcy Code (IBC), 2016 for a total consideration of
C 1,440 crore.
Pursuant to the approval of Resolution Plan, the
Company has made a payment of upfront consideration
of C 312 crore and and infused C 1 crore through equity
for the implementation of approved Resolution Plan.
On 16 October 2023, zero coupon, secured, unlisted
non-convertible debentures ("NCDs") of aggregate face
value of C 1,128 crore have been issued by Meenakshi
to its financial creditors, redeemable in 5 equal annual
instalments starting from 16 October 2025. Consequent
to satisfaction of all conditions precedent of the
Resolution Plan, the Company has acquired control of
Meenakshi on 27 December 2023. The above acquisition
meets the criterion of asset acquisition under Ind AS
103 - Business Combinations. Accordingly, fair value
of the total consideration amounting to C 1,080 crore
has been allocated to the identified assets and liabilities
acquired on the basis of their relative fair values.
(C) Scheme of Arrangement for demerger
The Board of Directors, in its meeting held on 29
September 2023, have approved a Scheme of
Arrangement (“the Scheme”) for demerger of various
businesses of the Company. The Scheme entails
demerger of the Company’s Aluminium (represented by
the Aluminium segment), Merchant Power (represented
by the Power segment), Oil & Gas (represented by
the Oil and Gas segment), Base Metals (represented
by the Copper and Zinc International segment) and
Iron Ore (represented by Iron Ore segment and Steel
business) Undertakings, into 6 separate companies
with a mirrored shareholding and consequent listings
at BSE Limited and National Stock Exchange of India
Limited (‘the Stock Exchanges’). The Company has filed
the Scheme with the Stock Exchanges. Upon receipt
of necessary approvals from the Stock Exchanges, the
Scheme will be filed with the NCLT. Pending regulatory
and other approvals, no adjustments have been
recorded in the financial statements of the Group for the
year ended 31 March 2024.
(D) Disposal of subsidiary
During the year ended 31 March 2024, Monte Cello BV
("MCBV"), a wholly owned subsidiary of the Company,
sold 100% of its equity ownership in its wholly owned
subsidiary, Copper Mines of Tasmania ("CMT") which
was previously engaged in copper mining operations in
Australia. Consequently, upfront cash consideration of
C 84 crore (US$ 10 million) received by the Group and
de-recognition of net liabilities of C 94 crore (US$ 11
million) pertaining to CMT, has resulted in a total gain
of C 178 crore which has been included in other income
in consolidated financial statements for the year ended
31 March 2024. Further, as part of the transaction, the
acquirer shall pay the Group additional consideration in
future upto US$ 310 million by way of fee/ royalties, on
achieving certain pre-agreed milestones.
5
Segment Information
A)
Description of segment and principal activities
The Group is a diversified natural resource group
engaged in exploring, extracting and processing minerals
and oil and gas. The Group produces zinc, lead, silver,
copper, aluminium, iron ore, oil and gas, ferro alloys,
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 organised 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, semiconductor, display, 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 products and hence these
have been identified as reportable segments by the
Group’s chief operating decision maker (“CODM”).
Segment Revenue, Results, Assets and Liabilities
include the respective amounts identifiable to each of
the segments and amount allocated on a reasonable
basis. Unallocated expenditure consist of common
expenditure incurred for all the segments and expenses
incurred at corporate level. The assets and liabilities
that cannot be allocated between the segments
are shown as unallocated assets and unallocated
liabilities respectively.
The accounting policies of the reportable segments
are the same as the Group’s accounting policies. The
operating segments reported are the segments of
the Group for which separate financial information is
available. Earnings before interest, depreciation and
amortisation and tax ("EBITDA") are evaluated regularly
by the CODM in deciding how to allocate resources
and in assessing performance. The Group’s financing
(including finance costs and finance income) and
income taxes are reviewed on an overall basis and are
not allocated to operating segments.
Pricing between operating segments are on an arm’s
length basis in a manner similar to transactions with
third parties.
The following table presents revenue and profit
information and certain assets and liabilities
information regarding the Group’s business segments
as at and for the year ended 31 March 2024 and
31 March 2023 respectively.
424
425
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
For the year ended 31 March 2024
(C in crore)
Particulars
Business Segments
Zinc
India
Zinc
International
Oil & Gas
Aluminium
Copper
Iron Ore
Power
Others
Eliminations
Total
Revenue
External revenue (Refer note
36(a))
27,889
3,555
17,837
48,317
19,726
8,956
6,153
9,360
-
1,41,793
Inter segment revenue
36
1
-
54
4
113
-
720
(928)
-
Segment revenue
27,925
3,556
17,837
48,371
19,730
9,069
6,153 10,080
(928) 1,41,793
Results
Segment results (EBITDA) a
13,562
693
9,777
9,657
(69)
1,676
971
188
-
36,455
Less: Depreciation, depletion
and amortisation
3,486
456
2,388
2,638
251
195
652
657
-
10,723
Add: Other expenses, net of
income b,c
183
-
(785)
95
10
8
11
1
-
(477)
Add: Other unallocable
income, net of expenses
1,770
Less: Finance costs
9,465
Add: Net exceptional gain
2,803
Net profit before tax
20,363
Other information
Segment assets
22,594
7,957
28,028
68,400
3,439
5,716
15,209 10,736
1,62,079
Financial assets
investments
11,869
Deferred tax assets
2,689
Income tax assets
3,844
Cash and bank balances
(including restricted cash
and bank balances)
5,152
Others
5,174
Total assets
1,90,807
Segment liabilities
7,353
2,099
14,671
25,322
5,398
3,486
837
3,805
62,971
Deferred tax liabilities
10,152
Borrowing
71,758
Income tax liabilities (net of
payments)
2,498
Others
1,359
Total liabilities
1,48,738
Capital expenditure d
3,530
2,139
3,217
7,773
104
621
1,364
1,355
-
20,118
Net (impairment)/ reversal
relating to assets
-
(117)
1,179
(131)
(746)
-
-
-
-
185
a) EBITDA is a non-GAAP measure.
b) Includes amortisation of duty benefits relating to assets recognised as government grant.
c) Includes cost of exploration wells written off in Oil & Gas segment.
d) Includes capital expenditure of C 15 crore which is not allocable to any segment.
For the year ended 31 March 2023
(C in crore)
Particulars
Business Segments
Zinc
India
Zinc
International
Oil & Gas Aluminium# Copper
Iron Ore
Power#
Others
Eliminations
Total
Revenue
External revenue
33,120
5,209
15,038
52,619
17,491
6,046
6,724
9,157
-
1,45,404
Inter segment revenue
-
-
-
43
-
457
-
88
(588)
-
Segment revenue
33,120
5,209
15,038
52,662
17,491
6,503
6,724
9,245
(588) 1,45,404
Results
Segment results (EBITDA) a
17,474
1,934
7,782
5,775
(4)
988
913
379
-
35,241
Less: Depreciation, depletion
and amortisation
3,290
487
2,577
2,528
194
146
651
682
-
10,555
Add: Other income, net of
expenses b,c
161
-
(327)
90
2
8
13
1
-
(52)
Add: Other unallocable
income, net of expenses
2,084
Less: Finance costs
6,225
Less: Net exceptional loss
217
Net profit before tax
20,276
Other information
Segment assets
22,848
6,846
24,485
65,528
5,104
5,375
15,205 10,977
- 1,56,368
Financial assets investments
13,150
Deferred tax assets*
7,074
Income tax assets*
3,333
Cash and bank balances
(including restricted cash
and bank balances)
9,948
Others
5,504
Total assets
1,95,377
Segment liabilities
6,399
1,076
14,985
26,706
5,249
2,597
2,069
3,694
-
62,775
Deferred tax liabilities
5,922
Borrowing
66,182
Income tax liabilities (net of
payments)*
622
Others
10,449
Total liabilities
1,45,950
Capital expenditure d
3,811
1,242
3,647
5,972
127
512
631
1,303
-
17,267
Net impairment reversal
relating to assets
-
-
18
-
(746)
644
-
109
-
771
* Restated, refer note 4(A).
# Pursuant to conversion of one of the 300 MW Captive Power Plant ("CPP") unit to Independent Power Plant ("IPP") with effect from 01 April
2023, and considering the usability of units interchangeably as IPP or CPP based on the annual declaration to Chief Electricity Inspector and the
annual consumption criteria as per the Electricity Act, 2003 and the Electricity Rules, 2005, the Chief Operating Decision Maker ("CODM") has
decided to review the operating results of aluminium and power segments together in a combined manner for one of its subsidiaries, Bharat
Aluminium Company Limited ("BALCO"). Consequently, with effect from 01 April 2023, these have been reported as a single Operating Segment, i.e.,
“Aluminium Segment”. Corresponding segment information for the year ended 31 March 2023 i.e., Segment revenue of C 477 crore (including inter-
segment revenue of C 218 crore), Segment results of C (62) crore, Depreciation, depletion and amortisation of C 38 crore and Other income, net of
expenses of C 3 crore for the year ended 31 March 2023 and Segment assets of C 1,290 crore and Segment liabilities of C 270 crore as at
31 March 2023 have been restated in accordance with Ind AS 108 “Operating Segments”.
a) EBITDA is a non-GAAP measure.
b) Includes amortisation of duty benefits relating to assets recognised as government grant.
c) Includes cost of exploration wells written off in Oil & Gas segment.
d) Includes capital expenditure of C 22 crore which is not allocable to any segment.
426
427
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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.
(C in crore)
Geographical Segments
Year ended
31 March 2024
Year ended
31 March 2023
Revenue by geographical segment
India
91,142
87,099
Europe
8,485
18,360
China
5,306
5,296
The United states of America
2,342
3,839
Mexico
1,562
4,619
Others
32,956
26,191
Total
1,41,793
1,45,404
The following is an analysis of the carrying amount of non-current assets, excluding deferred tax assets and financial assets,
analysed by the geographical area in which the assets are located:
(C in crore)
Geographical Segments
As at
31 March 2024
As at
31 March 2023*
Carrying amount of non-current assets
India
1,20,302
1,12,079
South Africa
6,802
5,316
Namibia
661
888
Taiwan
1,161
1,041
Other
1,194
1,632
Total
1,30,120
1,20,956
* Restated, refer note 4(A).
C) Information about major customer
No single customer has accounted for more than 10% of the Group’s revenue for the year ended 31 March 2024 and
31 March 2023.
D) Disaggregation of Revenue
Below table summarises the disaggregated revenue from contracts with customers
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Zinc metal
21,483
29,002
Lead metal
4,889
4,821
Silver metals and bars
5,503
4,577
Oil
14,873
12,448
Gas
2,885
2,807
Aluminium products
46,943
52,356
Copper products
19,328
17,070
Iron ore
5,400
2,328
Metallurgical coke
232
463
Pig iron
4,089
4,059
Power
4,574
5,288
Steel products
6,438
6,272
Ferro alloys
806
768
Others
5,070
3,725
Revenue from contracts with customers*
1,42,513
1,45,984
Revenue from contingent rents
1,423
1,543
Losses on provisionally priced contracts under Ind AS 109
(2,143)
(2,123)
Total revenue
1,41,793
1,45,404
*includes revenues from sale of services aggregating to C 321 crore (31 March 2023: C 326 crore) which is recorded over a period of time. The
balance revenue from contracts with customers is recognised at a point in time.
6
Property, Plant and Equipment, Intangible assets, Capital work-in-progress and Exploration intangible assets under development
(C in crore)
Particulars
Freehold
Land
Buildings
Plant and
equipment
Mining
property
Oil & gas
producing
facilities
Furniture
and
fixtures
Vehicles
Office
equipment
Right of
Use assets
(Refer note
below)
Total
Capital
work-in-
progress
(CWIP)
Exploration
intangible
assets under
development
Total including
capital work-
in-progress
and Exploration
intangible assets
under development
Property, Plant and Equipment
Gross Block
As at 01 April 2022
2,180
15,219
1,15,997
19,687
93,589
499
402
1,164
1,176
2,49,913
45,237
8,018
3,03,168
Additions
83
96
1,791
576
-
9
19
86
232
2,892
11,950
1,542
16,384
Transfers/ Reclassifications (i), (ii)
8
441
4,185
2,547
2,440
9
(1)
5
-
9,634
(8,855)
(148)
631
Disposals/ Adjustments
(17)
13
(2,197)
(13)
(284)
(53)
(14)
(78)
(10)
(2,653)
-
-
(2,653)
Exploration cost written off (Refer note 35)
-
-
-
-
-
-
-
-
-
-
-
(327)
(327)
Exchange differences
31
163
1,237
(572)
8,611
3
(10)
(12)
1
9,452
1,869
712
12,033
As at 31 March 2023
2,285
15,932
1,21,013
22,225
1,04,356
467
396
1,165
1,399
2,69,238
50,201
9,797
3,29,236
Additions
129
198
1,794
386
-
8
15
53
774
3,357
14,412
1,195
18,964
CWIP written off (Refer note 36(b))
-
-
-
-
-
-
-
-
-
-
(131)
-
(131)
Transfers/ Reclassifications (i)
2
296
6,692
1,939
1,859
4
4
11
38
10,845
(10,829)
(162)
(146)
Disposals/ Adjustments
(13)
(21)
(2,018)
(548)
(269)
(10)
(15)
(26)
(15)
(2,935)
(3)
(52)
(2,990)
Exploration cost written off (Refer note 35)
-
-
-
-
-
-
-
-
-
-
-
(786)
(786)
Exchange differences
5
(55)
19
(219)
1,552
(7)
(3)
(5)
(11)
1,276
331
137
1,744
As at 31 March 2024
2,408
16,350
1,27,500
23,783
1,07,498
462
397
1,198
2,185
2,81,781
53,981
10,129
3,45,891
Accumulated depreciation, depletion,
amortisation and impairment
As at 01 April 2022
335
7,306
46,912
11,977
89,621
365
154
1,037
216
1,57,923
31,007
6,369
1,95,299
Charge for the year
10
571
5,747
2,224
1,541
29
37
110
87
10,356
-
-
10,356
Disposals/ Adjustments
(7)
6
(1,392)
(2)
(6)
(52)
(9)
(76)
(10)
(1,548)
-
-
(1,548)
Impairment charge/(reversal) for the year
(Refer note 6(l))
-
-
(410)
-
(206)
-
-
-
-
(616)
(753)
598
(771)
Transfers/ Reclassifications (i), (ii)
-
-
166
-
312
3
-
(3)
-
478
166
-
644
Exchange differences
25
174
1,107
(237)
7,833
(1)
(8)
(17)
1
8,877
2,508
574
11,959
As at 31 March 2023
363
8,057
52,130
13,962
99,095
344
174
1,051
294
1,75,470
32,928
7,541
2,15,939
Charge for the year
8
528
6,156
2,139
1,294
34
37
106
195
10,497
-
-
10,497
Disposals/ Adjustments
(7)
(5)
(1,287)
(455)
-
(8)
(10)
(34)
(8)
(1,814)
45
-
(1,769)
Impairment charge/(reversal) for the year
(Refer note 36)
18
165
33
-
(789)
1
1
-
27
(544)
233
(45)
(356)
Transfers/ Reclassifications (i)
-
(24)
23
-
33
-
-
-
-
32
-
(32)
-
Exchange differences
4
(25)
100
(91)
1,453
(4)
(2)
(5)
(5)
1,425
444
107
1,976
As at 31 March 2024
386
8,696
57,155
15,555
1,01,086
367
200
1,118
503
1,85,066
33,650
7,571
2,26,287
Net Book Value/Carrying Amount
As at 01 April 2022
1,845
7,913
69,085
7,710
3,968
134
248
127
960
91,990
14,230
1,649
1,07,869
As at 31 March 2023
1,922
7,875
68,883
8,263
5,261
123
222
114
1,105
93,768
17,273
2,256
1,13,297
As at 31 March 2024
2,022
7,654
70,345
8,228
6,412
95
197
80
1,682
96,715
20,331
2,558
1,19,604
(i) Transfers/reclassification majorly includes capitalisation of CWIP to respective class of assets.
(ii) Transfer/reclassification from CWIP Accumulated Impairment to Mining Property Gross block amounting to C 644 crore.
428
429
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Right of Use (ROU) Assets
(C in crore)
Particulars
ROU Land
ROU Building
ROU Plant and
Equipment
Total
Gross Block
As at 01 April 2022
1,035
65
76
1,176
Additions
187
1
44
232
Disposals/ Adjustments
(10)
-
-
(10)
Exchange differences
-
3
(2)
1
As at 31 March 2023
1,212
69
118
1,399
Additions
255
3
516
774
Transfers/ Reclassification
1
-
37
38
Disposals/ Adjustments
(13)
-
(2)
(15)
Exchange differences
(10)
-
(1)
(11)
As at 31 March 2024
1,445
72
668
2,185
Accumulated depreciation & impairment
As at 01 April 2022
151
41
24
216
Charge for the year
53
12
22
87
Disposals/ Adjustments
(10)
-
-
(10)
Exchange differences
-
2
(1)
1
As at 31 March 2023
194
55
45
294
Charge for the year
42
16
137
195
Disposals/ Adjustments
(5)
(1)
(2)
(8)
Impairment charge for the year (note 36)
27
-
-
27
Exchange differences
(3)
(1)
(1)
(5)
As at 31 March 2024
255
69
179
503
Net Book Value
As at 01 April 2022
884
24
52
960
As at 31 March 2023
1,018
14
73
1,105
As at 31 March 2024
1,190
3
489
1,682
(C in crore)
Particulars
Software
License
Right to use
(refer note k)
Mining
Rights
Port concession
rights
(refer note i)
Brand &
Technological
know-how
Total
Intangible assets
Gross Block
As at 01 April 2022
418
144
1,140
685
221
2,608
Additions
14
-
824
-
-
838
Transfers/Reclassification
7
-
-
6
-
13
Disposals/ Adjustments
(152)
(144)
-
(1)
-
(297)
Exchange differences
(67)
-
-
-
(1)
(68)
As at 31 March 2023
220
-
1,964
690
220
3,094
Additions
11
260
112
-
-
383
Transfers/Reclassification
15
-
125
6
-
146
Disposals/ Adjustments
(9)
-
-
(1)
-
(10)
Exchange differences
-
-
-
-
(22)
(22)
As at 31 March 2024
237
260
2,201
695
198
3,591
Accumulated amortisation and impairment
As at 01 April 2022
380
31
410
220
91
1,132
Charge for the year
22
4
169
25
21
241
Disposals/ Adjustments
(153)
(35)
-
-
-
(188)
Exchange differences
(67)
-
-
-
-
(67)
As at 31 March 2023
182
-
579
245
112
1,118
Charge for the year
23
36
141
26
21
247
Disposals/ Adjustments
(9)
-
1
-
-
(8)
Exchange differences
-
-
-
-
(14)
(14)
As at 31 March 2024
196
36
721
271
119
1,343
Net Book Value/Carrying Amount
As at 01 April 2022
38
113
730
465
130
1,476
As at 31 March 2023
38
-
1,385
445
108
1,976
As at 31 March 2024
41
224
1,480
424
79
2,248
6
Capital Work in Progress (CWIP) ageing schedule
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Projects in
progress
Projects
temporarily
suspended
Projects in
progress
Projects
temporarily
suspended
Less than 1 year
11,527
-
8,513
7
1-2 years
4,008
-
1,878
2
2-3 years
628
-
534
5
More than 3 years
3,645
523
5,690
644
Total
19,808
523
16,615
658
CWIP completion schedule for projects whose completion is overdue or has exceeded its cost compared to its
original plan
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
To be completed in
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
Projects in progress
Lanjigarh alumina 2-5 MTPA
expansion project
4,729
-
-
-
6,666
21
-
-
Oil & Gas development CWIP projects
1,474
-
-
-
330
135
-
-
Others*
2,822
-
-
-
2,576
-
-
-
Projects temporarily suspended**
11
-
-
371
11
-
-
371
* Includes projects which are individually less than 10% of CWIP balance.
** Excludes ageing for existing Copper smelter plant and Copper 4 LTPA Expansion project which were on halt since April 2018. On 29 February
2024, the Hon’ble Supreme Court dismissed the Special Leave Petition filed by the Group. Basis detailed impairment analysis carried out by the
management, CWIP balance has been impaired during the year ended 31 March 2024. Post impairment, the carrying amount of CWIP as at
31 March 2024 is ` 38 Crore (31 March 2023: 237 Crore) for existing Copper smelter plant and ` 104 Crore (31 March 2023: ` 35 Crore) for
Copper 4 LTPA Expansion project. Refer Note 3(c)(A)(iii).
Exploration intangible assets under development ageing schedule
(C in crore)
Intangible assets under development
As at 31 March 2024
As at 31 March 2023
Projects in progress
Projects in progress
Less than 1 year
484
729
1-2 years
510
577
2-3 years
557
536
More than 3 years
1,007
414
Total
2,558
2,256
430
431
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Title deeds of immovable properties not held in the name of Company
(C in crore)
Relevant
line item
in the
Balance
sheet
Description
of item of
property
Gross
block
as at
31
March
2024
Gross
block
as at
31
March
2023
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
3,622
3,524 Oil & Natural Gas
Corporation Limited
(ONGC) & Cairn
India Ltd
No
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.
Land
4
4 National Thermal
Power Corporation
Ltd (NTPC)
No
20 June
2002
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
53
53 Erstwhile company
Sterlite Industries
(India) Limited, that
merged with the
Company
No
1965-2012*
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.
ROU Land
50
50
No
1993-2009*
Land
20
20 Erstwhile company
Vedanta Aluminium
Limited, that
merged with the
Company
No
2008-2012*
* Multiple dates of acquisitions during the period disclosed.
a)
Plant and equipment include refineries, smelters, power plants, railway sidings, ships, river fleets and related facilities.
b)
During the year ended 31 March 2024, interest capitalised was C 960 crore (31 March 2023: C 483 crore).
c)
Certain property, plant and equipment are pledged as security against borrowings, the details related to which have been
described in Note 19 on “Borrowings”.
d)
Freehold land includes 40 quarters at Bidhan Bagh Unit and 300.88 acres of land at Korba which have been occupied
without authorisation for which Group is evaluating evacuation options and the Group has filed the civil suits for the same.
e)
The Division Bench of the Hon’ble High Court of Chhattisgarh has vide its order dated 25 February 2010, upheld that
BALCO is in legal possession of 1,804.67 acres of Government land. Subsequent to the said Order, the State Government
has decided to issue the lease deed in favour of BALCO after the issue of forest land is decided by the Hon’ble Supreme
Court. In the proceedings before the Hon’ble Supreme Court, pursuant to public interest litigations filed, it has been alleged
that the land in possession of BALCO is being used in contravention of the Forest Conservation Act, 1980 even though
the said land has been in its possession prior to the promulgation of the Forest Conservation Act, 1980 on which its
Aluminium complex, allied facilities and township were constructed between 1971-76. The Central Empowered Committee
of the Supreme Court has already recommended ex-post facto diversion of the forest land in possession of BALCO. BALCO
has also filed two Interlocutory Applications (IAs) before the Supreme Court, first challenging the order of the Tehsildar
Korba whereby he rejected BALCO’s applications for eviction of illegal encroachers on BALCO’s land on the ground that
land matter is subjudice before the Supreme Court and the other application whereby BALCO has challenged the State
Government’s action for allotment of land to illegal encroachers under the Rajiv Ashray Yojna. 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 C 11,568 crore (31 March 2023: C 10,534 crore).
g)
In accordance with the exemption given under Ind AS 101, which has been exercised by the Group, a first time adopter can
continue its previous GAAP policy for accounting for exchange differences arising from translation of long-term foreign
currency monetary items recognised in the previous GAAP financial statements for the period ending immediately before
the beginning of the first Ind AS financial reporting period, i.e., 01 April 2016.
Accordingly, foreign currency exchange 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 C 1 crore
(31 March 2023: C 11 crore) are adjusted to the cost of respective item of property, plant and equipment.
h)
Reconciliation of depreciation, depletion and amortisation expense
(C in crore)
Particulars
For the year
ended
31 March 2024
For the year
ended
31 March 2023
Depreciation/Depletion/Amortisation expense on:
Property, Plant and Equipment
10,497
10,356
Intangible assets
247
241
As per Property, Plant and Equipment and Intangibles schedule
10,744
10,597
Less: Cost allocated to joint ventures and other adjustments
(21)
(42)
As per Consolidated Statement of Profit and Loss
10,723
10,555
i)
Vizag General Cargo Berth Private Limited (VGCB), a special purpose vehicle and wholly owned by the Company, was
incorporated for the coal berth mechanisation and upgradation at Visakhapatnam port. The project was to be carried out
on a design, build, finance, operate, transfer basis and the concession agreement between Visakhapatnam Port Trust
('VPT') and the Company was signed in June 2010. In October 2010, the Company was awarded with the concession after
fulfilling conditions stipulated as a precedent to the concession agreement. Visakhapatnam port trust has provided, in lieu
of license fee an exclusive license to the Company for designing, engineering, financing, constructing, equipping, operating,
maintaining, and replacing the project/project facilities and services. The concession period is 30 years from the date of
the award. The upgraded capacity is 10.18 mmtpa and the Visakhapatnam port trust would be entitled to receive 38.10%
share of the gross revenue as royalty. The Company is entitled to recover a tariff from the user(s) of the project facilities
and services as per its Tariff Authority for Major Ports (TAMP) notification. The tariff rates are linked to the Wholesale
Price Index (WPI) and would accordingly be adjusted as specified in the concession agreement every year. The ownership
of all infrastructure assets, buildings, structures, berths, wharfs, equipment and other immovable and movable assets
constructed, installed, located, created or provided by the Company at the project site and/or in the port’s assets pursuant
to concession agreement would be with the Company until expiry of this concession agreement. The cost of any repair,
replacement or restoration of the project facilities and services shall be borne by the Company during the concession
period. The Company has to transfer all its rights, titles and interest in the project facilities and services free of cost to VPT
at the end of the concession period. 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 2024 and 31 March 2023.
j)
As at 31 March 2024, TSPL's assets consisting of land (including ROU land), building and plant and machinery having net
carrying value of C 391 crore (31 March 2023: C 399 crore), C 138 crore (31 March 2023: C 153 crore) and C 7,327 crore
(31 March 2023: C 8,228 crore) respectively have been given on operating lease (refer note 3(c)(B)(i)).
k)
Consequent to the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (“the Rules”), during
the previous year, HZL had transferred its CSR assets, having carrying value of C 117 Crore, after obtaining regulatory
approvals, to a company registered under Section 8 of the Companies Act, 2013. The carrying value of these assets was
included as CSR expense in the financial statements owing to such transfer.
432
433
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
l)
(i)
During the year ended 31 March 2023, the Group had recognised a net impairment reversal of C 616 crore (after
considering impairment reversal of C 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 C 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 C 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 generated by the
projected oil and natural gas production profiles up to 2040, the expected dates of cessation of production sharing
contract (PSC)/cessation of production from each producing field based on the current estimates of reserves and
risked resources. Reserves assumptions for fair value less costs of disposal tests consider all reserves that a market
participant would consider when valuing the asset, which are usually broader in scope than the reserves used in a
value-in-use test. Discounted cash flow analysis used to calculate fair value less costs of disposal uses assumption
for short-term oil price of US $ 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 C 74 crore (US $ 9 million) and C 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 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 C 1,236 crore (US$ 155 million)
was recognised against capitalised development costs. The Group had a liability towards ONGC of C 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 had adjusted the claims received in the favour of the Group against the liability towards
ONGC and the net payable as of 31 March 2023 amounted to C 279 crore (US$ 34 million).
m) Freehold land includes gross block of C 176 crore (31 March 2023: C 175 crores), accumulated depreciation C 160 crore
(31 March 2023: C 154 crores), which is available for use during the lifetime of the Production Sharing Contract of the
respective Oil and Gas blocks.
n)
The Group holds approximately 52% stake in AvanStrate Inc, Japan (“ASI”) which has wholly owned subsidiaries in Korea
and Taiwan. Majority of the balance stake in ASI is held by Hoya Corporation, Japan (“Hoya”). There are certain operational
matters at ASI and the Group is currently in dialogue with Hoya for a commercial settlement against their Put option
and shareholder loan. In the meanwhile, the Group has applied principles of Ind AS 36– Impairment of Assets for testing
impairment for its investment in ASI and has used the fair values of net assets for the purpose of determining that there is
no material impact to the net carrying value of property, plant and equipment and intangibles amounting to C 1,146 crore.
7
Financial assets - Investments
A) Non-current Investments
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
(I)
Investments at fair value through other comprehensive income
Investment in Equity Shares - quoted
Sterlite Technologies Limited- 47,64,295 shares of C 2 each (31 March 2023: 47,64,295 shares of
C 2 each)
53
70
Investment in Equity Shares - unquoted
Sterlite Power Transmission Limited - 19,05,718 equity shares of C 2 each (31 March 2023:
19,05,718 equity shares of C 2 each)
11
11
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Investment in Equity Shares - unquoted
Serentica Renewables India 4 Private Limited- 5,60,00,000 Equity shares of class B of C 10 each
(31 March 2023: Nil) (Refer Note 40(A)(c)(iii))*
56
-
Serentica Renewables India 5 Private Limited- 3,30,00,000 Equity shares of class B of C 10 each
(31 March 2023: Nil) (Refer Note 40(A)(c)(iii))*
33
-
Investment in Bonds - quoted
169
153
(II)
Investments at fair value through profit and loss
Investment in Bonds - quoted
Infrastructure Leasing & Financial Services Limited
22
30
Investment in Optionally Convertible Redeemable Preference Shares ("OCRPS") - unquoted
Serentica Renewables India 1 Private Limited- 7,50,00,000 shares of C 10 each (31 March 2023:
7,50,00,000 shares of C 10 each ) (Refer Note 40(A)(c)(iii))
75
75
Serentica Renewables India 3 Private Limited- 13,99,80,000 shares of C 10 each (31 March 2023:
6,90,00,000 shares of C 10 each) (Refer Note 40(A)(c)(iii))
140
69
Serentica Renewables India 4 Private Limited- 22,40,00,000 shares of C 10 each (31 March 2023:
10,50,00,000 shares of C 10 each) (Refer Note 40(A)(c)(iii))
224
105
Serentica Renewables India 5 Private Limited- 9,82,50,000 shares of C 10 each (31 March 2023:
Nil) (Refer Note 40(A)(c)(iii))
98
-
Serentica Renewables India 7 Private Limited- 4,03,20,000 shares of C 10 each (31 March 2023:
Nil) (Refer Note 40(A)(c)(iii))
40
-
Serentica Renewables India 8 Private Limited- 3,30,00,000 shares of C 10 each (31 March 2023:
Nil) (Refer Note 40(A)(c)(iii))
33
-
Serentica Renewables India 9 Private Limited- 3,00,00,000 shares of C 10 each (31 March 2023:
Nil) (Refer Note 40(A)(c)(iii))
30
-
(III)
Investment in Equity Shares (fully paid)
Associate Companies and Joint ventures – unquoted
Gaurav Overseas Private Limited - 14,23,000 equity shares of C 10 each (31 March 2023:
14,23,000 equity shares of C 10 each)
1
1
RoshSkor Township (Proprietary) Limited - 50 equity shares of NAD 1 each (31 March 2023: 50
equity shares of NAD 1 each)
2
0
Madanpur South Coal Company Limited - 1,14,421 equity shares of C 10 each (31 March 2023:
1,14,421 equity shares of C 10 each)
2
2
Goa Maritime Private Limited - 5,000 equity shares of C 10 each (31 March 2023: 5,000 equity
shares of C 10 each)
0
0
Rosh Pinah Health Care (Proprietary) Limited- 69 equity shares of NAD 1 each (31 March 2023: 69
equity shares of NAD 1 each)
0
0
Less: Impairment in the value of investment
(2)
(2)
(IV)
Others
0
0
Total
987
514
Aggregate amount of quoted investments, and market value thereof
244
253
Aggregate amount of unquoted investments
745
263
Aggregate amount of impairment in the value of investments
(2)
(2)
Total
987
514
* OCRPS worth of C 56 crore and C 33 crore are converted into equity shares with differential voting rights of Serentica Renewables India
4 Private Limited ("SRI4PL") and Serentica Renewables India 5 Private Limited ("SRI5PL"), respectively as per terms of the Power Delivery
Agreement ("PDA"). Accordingly, these shares have been reclassified from Investments at fair value through profit and loss to Investments at
fair value through other comprehensive income. The Group has pledged all of its investments in SRI4PL for financing the project as per the
terms of the PDA.
434
435
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
B) Current Investments
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Investments carried at fair value through other comprehensive income (fully paid)
Investment in Bonds - quoted**
4,427
4,239
Investments carried at fair value through profit and loss (fully paid)
Investment in mutual funds - unquoted
2,659
4,563
Investment in bonds - quoted
3,796
3,834
Total
10,882
12,636
** Includes investments amounting to C 2,033 crore (31 March 2023: C 1,812 crore) 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
meet the criteria for derecognition or transfer of financial asset as per Ind AS 107.
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Aggregate amount of quoted investments, and market value thereof
8,223
8,073
Aggregate amount of unquoted investments
2,659
4,563
Total
10,882
12,636
8
Financial assets - Trade receivables
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Secured, Undisputed
Not due
-
356
356
-
319
319
Less than 6 months
-
276
276
-
292
292
6 months -1 year
-
4
4
-
6
6
1-2 Years
-
2
2
-
-
-
2-3 years
-
-
-
-
-
-
More than 3 years
-
-
-
-
3
3
sub-total
-
638
638
-
620
620
Unsecured, disputed
Unbilled dues
-
-
-
34
-
34
Not due
27
-
27
26
-
26
Less than 6 months
229
3
232
189
14
203
6 months -1 year
126
-
126
241
-
241
1-2 Years
321
-
321
441
-
441
2-3 years
392
1
393
389
-
389
More than 3 years
2,393
9
2,402
2,585
7
2,592
sub-total
3,488
13
3,501
3,905
21
3,926
Unsecured, Undisputed
Unbilled dues
-
96
96
-
98
98
Not due
-
1,654
1,654
-
2,242
2,242
Less than 6 months
-
1,201
1,201
-
1,007
1,007
6 months -1 year
-
6
6
-
17
17
1-2 Years
-
14
14
-
23
23
2-3 years
-
2
2
-
4
4
More than 3 years
-
(1)
(1)
-
5
5
sub-total
-
2,972
2,972
-
3,396
3,396
Less: Provision for expected credit loss
(1,079)
(16)
(1,095)
(1,373)
(23)
(1,396)
Total
2,409
3,607
6,016
2,532
4,014
6,546
a)
The credit period given to customers is up to 180 days (31 March 2023: 180 days). Also refer note 24 (C)(d)
b)
Trade receivables does not include any receivables from directors and officers of the company. For amount due and terms and conditions of
related party receivables, refer note 42.
c)
In a matter pertaining to mega power project benefit 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 appeal in July 2017 filed by TSPL. TSPL later filed an appeal before the Honourable Supreme Court to
seek relief, which is yet to be listed.
The outstanding trade receivables in relation to this dispute and other matters is C 1,620 crore as at 31 March 2024 (31 March 2023: C
1,476 crore). The Group, based on external legal opinion and its own assessment of the merits of the case, remains confident that it is
highly probable that the Supreme court will uphold TSPL’s appeal and has thus continued to treat these balances as recoverable.
d)
Trade receivables includes C 726 crore (net of Provision for expected credit loss ("ECL") recognised on account of time value of money) as at
31 March 2024 (31 March 2023: C 878 crore, net of ECL) 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, C 365 crore, net of ECL (31 March 2023: C 374 crore, net of ECL) 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 C 234 crores, net of ECL (31 March 2023: C 234 crore, net of ECL) relates to alleged short supply of power
for which the Group’s appeal on certain grounds are pending before APTEL.
e)
The total trade receivables as at 01 April 2022 were C 7,947 crore (net of provision for expected credit loss).
9
Financial assets - Loans
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Unsecured, considered good
Loans to related parties (Refer note 42)
5
3,361
3,366
9
3,749
3,758
Loans and advances to employees
0
3
3
1
11
12
Unsecured, considered credit impaired
Loans to related parties (Refer note 42)
-
88
88
-
87
87
Less: Provision for expected credit loss
-
(88)
(88)
-
(87)
(87)
Total
5
3,364
3,369
10
3,760
3,770
10 Financial assets - Others
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Bank deposits a, b, c
811
-
811
688
-
688
Site Restoration asset c
1,426
-
1,426
1,228
-
1,228
Unsecured, considered good
Receivables from related parties
(Refer note 42)
-
10
10
-
18
18
Security deposits
415
57
472
345
57
402
Others
Advance recoverable (oil and gas business)
-
7,791
7,791
-
7,622
7,622
Others d
18
4,899
4,917
1,523
171
1,694
Unsecured, considered credit impaired
Security deposits
43
1
44
43
1
44
Balance with government authorities
-
3
3
-
3
3
Others d
352
697
1,049
584
241
825
Less: Provision for expected credit loss
(395)
(701)
(1,096)
(627)
(245)
(872)
Total
2,670
12,757
15,427
3,784
7,868
11,652
a)
Bank deposits includes fixed deposit with maturity more than twelve months of C 300 crore (31 March 2023: C 208 crore) under lien with
bank, C 207 crore (31 March 2023: C 208 crore) reserve created against principal payment on loans from banks, restricted funds of C 202
crore (31 March 2023: C 146 crore) held as interest reserve created against interest payment on loans from banks and margin money of
C 0 crore (31 March 2023: C 39 crore).
b)
Restricted funds of C 9 crore (31 March 2023: C 7 crore) held as lien with Others, C 68 crore (31 March 2023: C 58 crore) held as margin
money against bank guarantees and C 2 crore (31 March 2023: C 2 crore) held as fixed deposit for closure cost.
c)
Bank deposits and site restoration asset earn interest at fixed rate based on respective deposit rates.
436
437
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
d)
Government of India (GoI) vide Office Memorandum (“OM”) No. O-19025/10/2005-ONG-DV dated 01 February 2013 allowed for
Exploration in the Mining Lease Area after expiry of Exploration period and prescribed the mechanism for recovery of such Exploration
Cost incurred. Vide another Memorandum dated 24 October 2019, GoI clarified that all approved Exploration costs incurred on Exploration
activities, both successful and unsuccessful, are recoverable in the manner as prescribed in the OM and as per the provisions of PSC.
Accordingly, the Group has started recognizing revenue for past exploration costs, through increased share in the joint operations revenue
as the Group believes that cost recovery mechanism prescribed under OM for profit petroleum payable to GoI is not applicable to its Joint
operation partner. During the year, the Arbitration Tribunal has issued Final Partial Award which allowed for recovery of exploration costs
(refer note 36(a)). Accordingly Group has recognized additional ` 480 Crore (US$ 58 million). At year end, an amount of ` 2,229 Crore (US$
267 million) (31 March 2023: ` 1,718 Crore (US$ 209 million)) is receivable from its joint operation partner on account of this. The Group is
actively engaging with Joint operation partner and the same will be recovered through revenue in due course.
11 Other assets
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Unsecured, considered good
Capital advances
2,519
-
2,519
1,747
-
1,747
Advances other than capital advances
Advances for supplies to related party
(Refer note 42)
81
239
320
25
1,663
1,688
Advances for supplies
60
1,554
1,614
40
2,128
2,168
Others
Balance with government authorities a
923
1,288
2,211
809
1,525
2,334
Others b
889
689
1,578
985
1,177
2,162
Unsecured, considered doubtful
Capital advances
178
-
178
188
-
188
Advance for supplies
-
78
78
-
76
76
Balance with government authorities
4
107
111
3
109
112
Claims and other receivables
Others b
758
6
764
1,068
4
1,072
Less: Provision for doubtful advances
(940)
(191)
(1,131)
(1,259)
(189)
(1,448)
Total
4,472
3,770
8,242
3,606
6,493
10,099
aa)
Includes C 66 crore (31 March 2023: C 66 crore), being Company’s share of gross amount of C 97 crore (31 March 2023: C 97 crore) paid
under rotest on account of Education Cess and Secondary Higher Education Cess for the year ended 2013-14.
b)
Others include claim receivables, advance recoverable (oil and gas business), prepaid expenses and export incentive receivables.
12 Inventories
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Raw materials
2,312
2,864
Goods-in transit
1,615
2,239
Work-in-progress
4,666
5,081
Goods-in transit
-
-
Finished good
954
1,028
Goods-in transit
9
-
Fuel stock
1,253
1,598
Goods-in transit
214
241
Stores and spares
1,914
1,915
Goods-in transit
64
46
Total
13,001
15,012
a)
Inventory held at net realisable value of C 1,830 crore as at 31 March 2024 (31 March 2023: C 2,051 crore).
b)
A write down of inventories amounting to C 167 crore (31 March 2023: C 113 crore) has been charged to the consolidated statement of profit
and loss during the year.
c)
For method of valuation for each class of inventories, refer note 3(a)(K).
13 Cash and cash equivalents
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Balances with banks a
2,682
6,078
Bank deposits with original maturity of less than 3 months (including interest accrued thereon) b
129
848
Cash on hand
1
0
Total
2,812
6,926
a)
Including foreign inward remittances aggregating C 15 crore (US$ 2 million) (31 March 2023: C 325 crore (US$ 40 million) held by banks in
their nostro accounts on behalf of the Group.
b)
Bank deposits earn interest at fixed rate based on respective deposit rates.
14 Other bank balances
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Bank deposits with original maturity of more than 3 months but less than 12 months (including interest
accrued thereon) a,b,c
1,265
859
Bank deposits with original maturity of more than 12 months (including interest accrued thereon) c,d
90
0
Earmarked unpaid dividend accounts e,f
158
1,467
Earmarked escrow account g
2
2
Total
1,515
2,328
a)
The above bank deposits includes C 49 crore (31 March 2023: C 97 crore) on lien with banks, margin money of C 82 crore (31 March 2023:
C 41 crore).
b)
C 42 crore (31 March 2023: C 42 crore) held as collateral in respect of closure costs, C 23 crore (31 March 2023: C 22 crore) held as lien with
Others and C 258 crore (31 March 2023: C 63 crore) held as margin money against bank guarantees.
c)
Bank deposits earn interest at fixed rate based on respective deposit rates.
d)
Includes C 38 crore (31 March 2023: C 0 crore) margin money with banks and fixed deposit under lien with others of C 0 crore (31 March 2023:
C 0 crore).
e)
'Includes C 158 crore (31 March 2023: C 1,322 crore) in unpaid dividend account of a subsidiary.
f)
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.
g)
Earmarked escrow account includes amount restricted in use as it relates to unclaimed redeemable preference shares..
15 Share capital
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Number
(in crore)
Amount
(C in crore)
Number
(in crore)
Amount
(C in crore)
A)
Authorised equity share capital
Opening and closing balance (equity shares of C 1 each
with voting rights)
4,402
4,402
4,402
4,402
Authorised preference share capital
Opening and closing balance (preference shares of C 10
each)
301
3,010
301
3,010
B)
Issued, subscribed and paid up
Equity shares of C 1 each with voting rights a, b
372
372
372
372
Total
372
372
372
372
a)
Includes 2,98,632 (31 March 2023: 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 78,66,397 (31 March 2023: 40,05,075) equity shares held by Vedanta Limited ESOS Trust (Refer note 16).
438
439
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
C) Shares held by ultimate holding company and its subsidiaries *
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
No. of Shares
held (in crore)
% of holding
No. of Shares
held (in crore)
% of holding
Twin Star Holdings Limited
156.48
42.10
172.48
46.40
Finsider International Company Limited
9.79
2.63
16.35
4.40
Welter Trading Limited
3.82
1.03
3.82
1.03
Vedanta Holdings Mauritius II Limited
49.28
13.26
49.28
13.26
Vedanta Holdings Mauritius Limited
10.73
2.89
10.73
2.89
Vedanta Netherlands Investment BV
0.15
0.04
0.50
0.13
Total
230.25
61.95
253.16
68.11
* 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 Vedanta Incorporated (erstwhile, Volcan Investments Limited), the ultimate holding company.
D) Details of shareholders holding more than 5% shares in the Company *
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
No. of Shares
held (in crore)
% of holding
No. of Shares
held (in crore)
% of holding
Twin Star Holdings Limited
156.48
42.10
172.48
46.40
Vedanta Holdings Mauritius II Limited
49.28
13.26
49.28
13.26
Life Insurance Corporation of India
32.79
8.82
33.54
9.02
* 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
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
No. of Shares
held (in crore)
% of holding
% Change during
the year
No. of Shares
held (in crore)
% of holding
Twin Star Holdings Limited
156.48
42.10
(4.30)
172.48
46.40
Finsider International Company Limited
9.79
2.63
(1.77)
16.35
4.40
Welter Trading Limited
3.82
1.03
-
3.82
1.03
Vedanta Holdings Mauritius II Limited
49.28
13.26
-
49.28
13.26
Vedanta Holdings Mauritius Limited
10.73
2.89
-
10.73
2.89
Vedanta Netherlands Investment BV
0.15
0.04
(0.09)
0.50
0.13
Mr. Pravin Agarwal
0.00
0.00
-
0.00
0.00
Ms. Suman Didwania
0.01
0.00
-
0.01
0.00
Mr. Ankit Agarwal
0.00
0.00
-
0.00
0.00
Ms. Sakshi Mody
0.00
0.00
-
0.00
0.00
Total
230.26
61.95
(6.16)
253.17
68.11
F)
Other disclosures
i)
The Company has one class of equity shares having a par value of C 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 2013-14) during 2002-03
reduced its paid up share capital by C 10 crore. There are 1,99,366 equity shares (31 March 2023: 2,00,038 equity shares)
of C 1 each pending clearance from NSDL. The Company has filed an application in Hon'ble High Court of Mumbai to
cancel these shares, the final decision on which is pending. Hon'ble High Court of Judicature at Mumbai, vide its interim
order dated 06 September 2002 restrained any transaction with respect to subject shares.
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 of
net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to
ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year,
then the total dividend distribution is less than the total distributable reserves for that year. Consequent to introduction
of Companies Act, 2013 ("Act"), the requirement to mandatory transfer a specified percentage of the net profit to general
reserve has been withdrawn.
(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 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,
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.
The Company is in the process of complying with the further requirements specified in the NCLT Order.
(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 reorganisation 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.
HZL is in the process of complying with the further requirements specified in the NCLT Order.
(b) Preference share redemption reserve: The Companies Act, 2013 provides that companies that issue preference shares
may redeem those shares from profits of the Company which otherwise would be available for dividends, or from proceeds
of a new issue of shares made for the purpose of redemption of the preference shares. If there is a premium payable
on redemption, the premium must be provided for, either by reducing the additional paid up capital (securities premium
account) or net income, before the shares are redeemed. If profits are used to redeem preference shares, the value of
the nominal amount of shares redeemed should be transferred from profits (retained earnings) to the preference share
redemption reserve. This amount should then be utilised for the purpose of redemption of redeemable preference shares.
This reserve can be used to issue fully paid-up bonus shares to the shareholders of the Company.
440
441
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
(c)
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.
(d) Securities premium: The amount received in excess of nominal value of the equity shares is recognised in securities
premium. This reserve is utilised in accordance with the specific provisions of the Act.
(e)
Foreign currency translation reserve: Items in the consolidated statement of profit and loss of those businesses for which
the Indian Rupees is not the functional currency are translated into Indian Rupees at the average rates of exchange during
the year/ exchange rates as on the date of transaction. The related consolidated balance sheet is translated into Indian
rupees at the rates as at the reporting date. Exchange differences arising on translation are recognised in consolidated
statements of other comprehensive income. On disposal of such entities the deferred cumulative exchange differences
recognised in equity relating to that particular foreign operation are recognised in the consolidated statement of profit
and loss.
(f)
Equity settled share based payment reserve: Share-based payments reserve represents amount of fair value, as on the
date of grant, of unvested options and vested options not exercised till date, that have been recognised as expense in the
statement of profit and loss till date.
(g) Legal reserve is created at Fujairah Gold FZC in accordance with free zone regulations.
(h) Treasury share represents 78,66,397 (31 March 2023: 40,05,075) equity shares (face value of C 1 each) of the Company
purchased by Vedanta Limited ESOP Trust pursuant to the Company's stock option scheme as detailed in note 32.
(i)
Hedging reserve: Hedging reserve represents the cumulative effective portion of gains or losses arising on changes in
fair value of hedging instruments entered into for cash flow hedges, which is recognised in OCI and later reclassified to
statement of profit and loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a non-financial asset or non-financial liability.
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 2024, 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 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.
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.
The table below shows summarised financial information of subsidiaries of the Group that have non-controlling interests. The
amounts are presented before inter-company elimination.
(C in crore)
Particulars
As at 31 March 2024
HZL
BALCO
Others
Total
Non-current assets
21,714
15,763
17,230
54,707
Current assets
12,628
2,221
2,974
17,823
Non-current liabilities
8,020
4,131
4,572
16,723
Current liabilities
10,840
3,980
8,049
22,869
Equity attributable to owners of the Group
10,052
5,035
6,890
21,977
Non-controlling interests a
5,430
4,838
1,079
11,347
(a) C 386 crore loss attributable to NCI of ASI transferred to put option liability. Refer note 22.
(C in crore)
Particulars
As at 31 March 2023
HZL
BALCO
Others
Total
Non-current assets
21,156
13,144
15,887
50,187
Current assets
14,805
2,748
3,997
21,550
Non-current liabilities
5,257
2,439
5,915
13,611
Current liabilities
17,452
4,878
5,359
27,689
Equity attributable to owners of the Group
8,603
4,373
7,863
20,839
Non-controlling interests a
4,649
4,202
1,153
10,004
(a) C 406 crore loss attributable to NCI of ASI transferred to put option liability. Refer note 22.
(C in crore)
Particulars
For the year ended 31 March 2024
HZL
BALCO
Others
Total
Total Income
30,009
13,563
13,917
57,489
Profit/ (loss) after tax for the year
7,726
1,309
(940)
8,095
Profit/ (loss) attributable to the equity shareholders of the
Company
5,016
667
(888)
4,795
Profit/ (loss) attributable to the non-controlling interests
2,710
642
(52)
3,300
Other comprehensive loss during the year
(3)
(12)
(86)
(101)
Other comprehensive loss attributable to the equity shareholders
of the Company
(2)
(6)
(84)
(92)
Other comprehensive loss attributable to non-controlling
interests
(1)
(6)
(2)
(9)
Total comprehensive income/ (loss) during the year
7,723
1,297
(1,026)
7,994
Total comprehensive income/ (loss) attributable to the equity
shareholders of the Company
5,014
661
(972)
4,703
Total comprehensive income/ (loss) attributable to non-
controlling interests
2,709
636
(54)
3,291
Dividends paid to non-controlling interests
1,928
-
-
1,928
Net cash inflow from operating activities
13,346
1,603
2,902
17,851
Net cash outflow from investing activities
(3,408)
(2,262)
(2,096)
(7,766)
Net cash outflow/ (inflow) from financing activities
(9,944)
632
(947)
(10,259)
Net cash outflow
(6)
(27)
(141)
(174)
(C in crore)
Particulars
For the year ended 31 March 2023
HZL
BALCO
Others
Total
Total Income
35,465
13,496
15,074
64,035
Profit after tax for the year
10,479
(64)
941
11,356
Profit attributable to the equity shareholders of the Company
6,803
(33)
657
7,427
Profit attributable to the non-controlling interests
3,676
(31)
284
3,929
Other comprehensive (loss)/ income during the year
40
33
(381)
(308)
Other comprehensive (loss)/ income attributable to the equity
shareholders of the Company
27
17
(286)
(242)
Other comprehensive (loss)/ income attributable to non-
controlling interests
13
16
(95)
(66)
Total comprehensive income during the year
10,519
(31)
560
11,048
442
443
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
(C in crore)
Particulars
For the year ended 31 March 2023
HZL
BALCO
Others
Total
Total comprehensive income attributable to the equity
shareholders of the Company
6,830
(16)
371
7,185
Total comprehensive income attributable to non-controlling
interests
3,689
(15)
189
3,863
Dividends paid to non-controlling interests
11,190
-
-
11,190
Net cash inflow from operating activities
15,161
1,219
2,511
18,891
Net cash inflow/ (outflow) from investing activities
6,529
(1,127)
(1,436)
3,966
Net cash outflow from financing activities
(23,223)
(220)
(1,241)
(24,684)
Net cash outflow
(1,533)
(128)
(166)
(1,827)
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, bank and other current and non-current
investments. Equity comprises all components including other comprehensive income.
The following table summarises the capital of the Group:
(C in crore except otherwise stated)
Particulars
As at
31 March 2024
As at
31 March 2023
Cash and cash equivalents (Refer note 13)
2,812
6,926
Other bank balances a (including interest accrued) (Refer note 14)
1,030
732
Non-current Bank deposits a (Refer note 10)
531
475
Long term investments (Refer note 7A)
169
153
Short term investments (Refer note 7B)
10,882
12,636
Total cash (a)
15,424
20,922
Non-current borrowings (Note 19A)
50,633
43,476
Current borrowings (Note 19B)
21,125
22,706
Total borrowings (b)
71,758
66,182
Net debt (c=(b-a))
56,334
45,260
Total equity (d)
42,069
49,427
Total capital (e = equity + net debt)
98,403
94,687
Gearing ratio (times) (c/e)
0.57
0.48
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 C 765 crore
(31 March 2023: C 1,809 crore) have been excluded from ‘total cash’ in the capital management disclosures.
19 Financial liabilities - Borrowings
A) Non-current borrowings
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
At amortised cost
Secured
Non convertible debentures
13,402
7,138
Term loans from banks
- Rupee term loans
34,165
34,398
- Foreign currency term loans
1,917
2,662
- External commercial borrowings
2,917
3,261
Term loans from others
7,433
-
Others
440
494
Unsecured
Non convertible debentures
-
2,911
Deferred sales tax liability
12
28
Non convertible bonds
31
31
Term loans from banks
- Rupee term loans
7,168
2,795
- Foreign currency term loans
-
4
Redeemable preference shares
2
2
Term loans from others
7
-
Non-current Borrowings
67,494
53,724
Less: Current maturities of long term borrowings a
(16,861)
(10,248)
Total non-current Borrowings (Net) (A)
50,633
43,476
Current Borrowings (Refer note 19B) (B)
21,125
22,706
Total Borrowings (A+B)
71,758
66,182
B) Current borrowings
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
At amortised cost
Secured
Non Convertible Debentures
1,600
-
Working capital loan
489
208
Packing credit in foreign currencies from banks
-
300
Term loans from banks
1,856
1,857
Amounts due on factoring
29
22
Bank Overdraft
9
-
Current maturities of long term borrowings a
13,925
6,247
Unsecured
Rupee term loans from banks
58
3,002
Loans repayable on demand from banks
21
2,255
Commercial paper
-
4,714
Working capital loan
202
100
Current maturities of long term borrowings a
2,936
4,001
Total
21,125
22,706
444
445
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
a)
Current maturities of long term borrowings consists of:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Secured
Non convertible debentures
3,367
51
Term loans from banks
- Rupee term loans
9,099
5,287
- Foreign currency term loans
157
27
External commercial borrowings
859
385
Others
443
497
Unsecured
Non convertible debentures
-
2,911
Term loans from banks
2,923
1,070
Deferred sales tax liability
11
18
Redeemable preference shares
2
2
Grand total
16,861
10,248
b)
Details of Non-convertible debentures issued by Group have been provided below (Carrying value)
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
8.74% due June 2032
4,089
4,089
9.20% due February 2030
2,000
2,000
0.00% due October-2025 (refer note 4B)
776
-
12.00% due June 2025
3,170
-
12.00% due March 2025
2,368
-
7.68% due December 2024
999
998
11.85% due May 2024
1,600
-
3m T-bill rate + 240 bp due March 2024*
-
800
0.00% NCD's due March 2024
-
51
5.35% due September 2023
-
2,111
Total
15,002
10,049
* The 3-month Treasury bill rate as at 31 March 2023 was 6.34%
c)
The Group has taken borrowings in various countries towards funding of its acquisitions, capital expenditure and working
capital requirements. The borrowings comprises funding arrangements from various banks and financial institutions taken
by the parent and subsidiaries. The details of security provided by the Group in various countries, to various lenders on the
asset of the parent and subsidiaries are as follows -
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Secured non-current borrowings
46,349
41,706
Secured current borrowings
17,908
8,634
Total
64,257
50,340
(C in crore)
Facility
Category
Security details
As at
31 March 2024
As at
31 March 2023
Working capital
loans*
First pari pasu charge on current assets of FACOR
29
22
Secured by second pari passu charge on fixed assets of TSPL and first pari passu
charge on current assets of TSPL, both present and future
434
110
First ranking pari passu charge by deed of Hypothecation on March 28, 2023 in favour
of Vistra ITCL (India) Limited, security trustees
64
-
Other secured working capital loans
-
399
External
Commercial
Borrowings
First pari passu charge by way of hypothecation on all present and future movable
assets of the Company with a minimum fixed asset cover of 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 (Captive power plant) at Jharsuguda
(ii) 1 MTPA (proposed capacity of 6 MTPA) alumina refinery along with CPP of 90
MW (Captive power plant) at Lanjigarh, Odisha
(iii) 2400 MW Power plant (1800 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
oil fields, Ravva Oil & Gas fields (under PKGM-1 block) and OALP blocks.
1,094
1,224
A First pari passu charge by way of hypothecation on the specified movable fixed
assets of the Company pertaining to its manufacturing facilities comprising:
(i) alumina refinery having output of 6 MTPA along with co-generation captive 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
1,823
2,037
Non convertible
debentures
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 furniture and
fixtures erected/ installed or to be erected/installed thereon and hypothecation over
movable fixed assets excluding capital work in progress in relation to the aluminium
division comprising 6 MTPA alumina refinery alongwith 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, machinery spares, tools and accessories
and other movable fixed assets.
4,089
4,089
Secured by way of first pari passu charge on whole of the movable fixed assets of:
(i) alumina refinery having output of 1 MTPA along with co-generation captive power
plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha; and
(ii) 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.
2,000
2,000
Secured by :-
(i) first ranking pari passu charge, by way of hypothecation, over the movable
fixed assets of the Company to be more particularly set out in the deed of
hypothecation;
(ii) first ranking exclusive charge, by way of hypothecation, over certain charged
receivables and designated cash account to be more particularly set out in the
deed of hypothecation; and
(iii) a pledge over shares constituting 100 per cent of the share capital of Sesa Iron
and Steel Limited and
(iv) any other security as may be agreed between the Company and the Trustee
3,170
-
446
447
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
(C in crore)
Facility
Category
Security details
As at
31 March 2024
As at
31 March 2023
Non
Convertable
Debentures
Secured by
(i) 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW) captive
power plant in Jharsuguda, Odisha;
(ii) 6 MTPA Alumina refinery along with 90 MW co-generation captive power plant
(operating capacity) in Lanjigarh, Odisha;
(iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at Jharsuguda,
Odisha;
(iv) Copper plant assets at Silvasa including 245,000 MT of blister/ secondary
material processing plant, a 2,16,000 TPA copper refinery plant and a copper rod
mill with an installed capacity of 2,58,000 TPA;
(v) Oil & gas division comprising of RJ-ON-90/i Oil & Gas Block (Rajasthan); Cambay
oil fields and Ravva oil & gas Fields (under PKGM-1 block); OALP blocks;
(vi) all assets, business and undertaking of every kind (tangible movable assets
constituting fixed assets) of the company related to exploration, mining,
processing, and manufacturing of iron ore and its derivatives in Karnataka and
Goa. These assets include pig iron plants, metallurgical coke plants, and power
plants in Goa;
(vii) a pledge over shares constituting 100 per cent of the share capital of Sesa Iron
and Steel Limited.
2,368
-
Secured by way of first pari-passu charge on the specific movable Fixed Assets.
The whole of the movable Fixed Assets both present and future, of the Company in
relation to the aluminium division, comprising the following facilities:
(i) 1 MTPA alumina refinery alongwith 90 MW co-generation captive power plant in
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 fixed
assets
999
998
Secured by first pari-passu charge on all existing fixed assets of the Meenakshi
Energy Limited as on the last available audited accounts of the Closing Date, as
more particularly set out in, and pursuant to the terms of, the Security Documents
(hereinafter referred to as the "Security", with each asset (which shall also include
each of the Sale Deeds that may be executed by the Issuer in relation to the relevant
Agreement to Sell Assets and the Patta Land).
The Security specified above, shall be created as a first ranking security ranking pari
passu amongst:
(i) the Debenture Holders, to secure the due repayment of the Outstanding Amounts;
and
(ii) the Persons who have provided/shall provide any Additional Financial
Indebtedness, to secure such Additional Financial Indebtedness.
776
-
Secured by
(i) Pledge of shares of Sesa Resources Limited held by the Company
(ii) Corporate Guarantee from the Company backed by asset security (movable fixed
asset of the Company and certain intangible assets); and
(iii) Movable fixed assets of Sesa Resources Limited
1,600
-
Other secured Non Covertible Debentures
-
52
Term loans
from banks
(Includes rupee
term loans and
foreign currency
term loans)
Secured by first pari passu charge on fixed assets of TSPL and second pari passu
charge on current assets of TSPL, both present and future
5,616
6,168
Secured by a pari passu charge by way of hypothecation of all the movable fixed
assets of the Company pertaining to its aluminium division project consisting:
(i) alumina refinery having output of 1 MTPA (Refinery) along with co-generation
captive power plant with an aggregate capacity of 90 MW at Lanjigarh, Orissa
(Power Plant); and
(ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9*135) MW
CPP at Jharsuguda, Orissa (Smelter) (the Refinery, Power Plant and Smelter).
Also, a first pari passu charge by way of equitable mortgage on the land pertaining to
the mentioned project of aluminium division.
1,433
1,605
(C in crore)
Facility
Category
Security details
As at
31 March 2024
As at
31 March 2023
Term loans
from banks
(Includes rupee
term loans and
foreign currency
term loans)
Secured by a pari passu charge by way of hypothecation on the movable fixed
assets of the Lanjigarh Refinery Expansion Project including 210 MW Power Project.
Lanjigarh Refinery Expansion Project shall specifically exclude the 1 MTPA alumina
refinery of the Company along with 90 MW power plant in Lanjigarh and all its related
expansions.
310
359
Secured by a pari passu charge by way of hypothecation on the movable fixed assets
of the Company pertaining to its aluminium division comprising 1 MTPA alumina
refinery 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
2,765
3,394
Secured by a pari passu charge by way of hypothecation/ equitable mortgage of
the movable/ immovable fixed assets of the Company pertaining to its aluminium
division comprising 1 MTPA alumina refinery 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.
4,924
5,873
First pari passu charge by way of hypothecation/ equitable mortgage on the movable/
immovable assets of the aluminium Division of the Company comprising alumina
refinery having output of 1 MTPA along with co-generation captive power plant with
an aggregate capacity of 90 MW at Lanjigarh, Orissa; aluminium smelter having
output of 1.6 MTPA along with a 1,215 (9*135) MW CPP at Jharsuguda, Orissa and
additional charge on Lanjigarh Expansion project, both present and future.
468
780
Secured by a first pari passu charge on the identified fixed assets of the 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)
6,387
7,221
Secured by
(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
1,835
2,662
A first pari passu first charge by way of hypothecation on the Specified movable fixed
assets of the Company pertaining to its Manufacturing facilities comprising:
(i) alumina refinery having output of 1 MTPA along with co- 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 (9*135) MW
CPP at Jharsuguda, Orissa.
942
1,137
Secured by first pari passu charge on all present and future movable fixed assets
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.
2,050
831
First ranking pari passu charge by way of hypothecation/mortgage on all fixed/
immovable assets of ESL Steel Limited but excluding any current assets or pledge
over any shares.
1,842
2,273
A first pari passu charged by way of hypothecation on the specified movable fixed
assets (present and future) including movable plant and machinery, machinery
spares, tools and accessories, furniture and fixtures, vehicle, Capital work-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) alumina refinery upto 6 MTPA along with co-generation captive power plant with
aggregate capacity of 90 MW located in Lanjigarh, Odisha
(ii) alumina smelter output of 1.6 MTPA aluminium Smelter including 1,215 (9*135)
MW power plant in Jharsuguda, Odisha
(iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located as Jharsuguda,
Odisha
374
473
448
449
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
(C in crore)
Facility
Category
Security details
As at
31 March 2024
As at
31 March 2023
Term loans
from banks
(Includes rupee
term loans and
foreign currency
term loans)
A first pari passu charge by way of mortgage/ hypothecation over the specified
movable fixed assets of the Company. 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) 1 MTPA alumina refinery along with 90 MW CPP at Lanjigarh, Odisha.
985
1,191
First Pari-passu charge by way of hypothecation on all present and future movable
assets of the company with a minimum fixed asset cover of 1.10 times of the
outstanding facility during the currency of the facility comprising of -
(i) 6 MTPA alumina refinery along with 90 MW co-generation captive power plant
(operating capacity) in Lanjigarh, Odisha.
(ii) 1.6 MTPA aluminium smelter plant along with 1215 MW (9*135 MW) captive
power plant in Jharsuguda, Odisha.
(iii) 2,400 MW Power Plant (1800 MW CPP and 600 MW IPP) located at Jharsuguda,
Odisha.
(iv) Oil & Gas division comprising of RJ-ON-90/1 Oil & Gas Block (Rajasthan),
Cambay Oil Fields, Ravva Oil & Gas Fields (under PKGM-1 block) and OALP
blocks.
848
-
Secured by first pari passu charge by way of movable fixed assets of the aluminium
division of the Company comprising:
(i) 6 MTPA aluminium refinery along with 90 MW Co-generation captive 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
728
743
A first pari passu first charge by way of hypothecation on the Specified movable fixed
assets of the Company pertaining to its Manufacturing facilities comprising:
(i) 1.6 MTPA aluminium smelter along with 1,215 MW CPP (captive power plant) at
Jharsuguda and
(ii) 1 MTPA alumina refinery along with CPP of 90 MW (captive power plant) at
Lanjigarh, Odisha
470
490
A first pari passu charge by way of mortgage/ hypothecation over the specified
immovable and movable fixed assets of the Company. Security shall comprise of
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) 1 MTPA alumina refinery along with CPP of 90 MW CPP at Lanjigarh, Odisha
814
927
First pari passu charge by way of hypothecation on all present and future movable
fixed assets of the Company including but not limited to plant and machinery,spares,
tools and accessories of 1.6 MTPA aluminium smelter along with 1,215 MW CPP at
Jharsuguda, Odisha and 1 MTPA alumina refinery along with 90 MW CPP at Lanjigarh,
Odisha
423
683
Secured by tax free perpetual bonds**
1,504
1,505
Secondary charge by way of hypothecation on all present and future movable assets
of the company comprising of -
(i) Aluminium business of the Company at its Jharsuguda Plant and Lanjigarh Plant;
(ii) 2400 MW power plant of the Company at Jharsuguda;
(iii) Copper Plant of the Company at Silvasa;
(iv) Iron ore business of the Company in the state of Goa; and
(v) Oil & Gas business of the Company in the states of Rajasthan, Gujarat, Andhra
Pradesh and OALP blocks.
Pledge of shares of HZL held by company with a minimum coverage of 2.29X of the
outstanding loan value
1,091
-
(C in crore)
Facility
Category
Security details
As at
31 March 2024
As at
31 March 2023
Exclusive charge by way of hypothecation on all present and future movable assets of
the company comprising of -
(i) 400 KTPA Copper Smelter Plant along with 246 KTPA Refinery and Ancillary
Plants including 96 KTPA Copper Rod Plant, 1300 KTPA Sulphuric Acid plant and
230 KTPA Phosphoric Acid Plant at Tuticorin;
(ii) 160 MW Thermal Power Plant (TPP) at Tuticorin.
Pledge of shares of HZL held by company with a minimum coverage of 2.2X of the
outstanding loan value.
1,494
-
Secured by first pari pasu charge on all bank accounts, insurance policies and trade
receivables of Black Mountain Mining (Pty) Ltd by way of a deed of hypothecation.
435
-
A first pari passu charge by way of hypothecation on all present and future movable
Fixed Assets including movable plant and machinery, machinery spares, tools
and accessories, furniture and fixtures, vehicles, Capital Work-in-Progress etc. of
the Company with a minimum fixed asset coverage ratio of 1.10 times as more
particularly described as below:
(i) Alumina refinery upto 6 MTPA along with co-generation captive power plant 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 (9*135) 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)
200
250
Other secured term loans from banks
-
352
Term Loan from
others
Secured by:
(i) Exclusive pledge on 3.3% of Hindustan Zinc Limited (“HZL”) shares;
(ii) 100% share pledge of THL Zinc Ventures Limited, THL Zinc Limited, THL Zinc
Holding BV and THL Zinc Namibia Holdings (Pty) Limited;
(iii) 100% share pledge of Zinc holding in Black Mountain Mining (Pty) Ltd.
7,433
-
Others
Secured by Fixed asset (platinum) of AvanStrate Inc
440
493
Total
64,257
50,340
* Includes loans repayable on demand from banks, export packing credit from banks and amounts due on factoring.
** Repurchase liability as on 31 March 2024 are secured by current investments amounting to C 2,033 crore and are repayable in 365 days
(31 March 2023: 102 to 109 days) from the date of borrowings through repurchase obligation.
d)
The loan facilities are subject to certain financial and non- financial covenants. The primary covenants which must be
complied with include interest service coverage ratio, current ratio, debt service coverage ratio, total outside liabilities to total
net worth, fixed assets coverage ratio, ratio of total term liabilities to net worth and debt/ EBITDA. The Group has complied with
the covenants as per the terms of the respective loan agreements. Also, refer note 2.
Further, in case of borrowings having current assets as security, the quarterly statements of current assets filed by the Group
with its lenders are in agreement with the books of accounts.
450
451
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
e)
Term of repayment of total borrowings outstanding as at 31 March 2024 are provided below -
(C in crore)
Borrowings
Weighted
average of
interest as at
31 March 2024
Total
carrying
value
<1
year
1-3
years
3-5
years
>5
years
Remarks
Foreign currency
term loan
11.58%
11,206
2,013
8,456
824
-
Repayable in 6 monthly, 16 quarterly, 1 half yearly, 6
annual installments and 1 bullet payment
Rupee term loan
10.19%
41,391
12,126
18,476
7,100
3,805
Repayable in 288 monthly, 437 quarterly, 2 half yearly,
16 annual installments and 3 bullet payments
External
commercial
borrowings
8.16%
2,917
867
1,717
350
-
Repayable in 30 half yearly installments
Non convertible
debentures
11.14%
15,002
6,700
2,183
276
6,206 Repayable in 5 annual installments and 6 bullet payments
Working capital
loan *
9.26%
721
721
-
-
-
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
Amounts due on
factoring
8.28%
29
29
-
-
-
Repayable within one month
Deferred sales tax
liability
NA
12
11
1
-
-
Repayable in 31 monthly payments
Redeemable
preference shares
NA
2
2
-
-
-
The redemption and dividend paid to the preference shares
unclaimed if any, is payable on claim.
Non-convertible
bonds
0.30%**
31
4
10
8
10
Repayable in 10 annual installments
Others
5.12%
447
441
7
-
-
Repayable in 1 year as per lender's demand
Total
71,758 22,914 30,850
8,558 10,021
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 C 21 crore
** Increasing interest rate to 0.50% till maturity
f)
Term of repayment of total borrowings outstanding as at 31 March 2023 are provided below -
(C in crore)
Borrowings
Weighted
average of
interest as at
31 March 2023
Total
carrying
value
<1
year
1-3
years
3-5
years
>5
years
Remarks
Foreign currency
term loan
8.90%
2,662
27
541
2,136
-
Repayable in 7 quarterly installments
Rupee term loan
8.50%
42,052
11,255
14,787
11,824
4,320
Repayable in 156 monthly, 712 quarterly, 2 half yearly
installments and 21 bullet payments
External
commercial
borrowings
7.42%
3,261
394
1,923
970
-
Repayable in 35 half yearly payments
Non convertible
debentures
8.51%
10,049
2,984
1,000
-
6,089
Repayable in 5 bullet and 2 annual installments
Commercial paper
7.69%
4,714
4,714
-
-
-
Repayable in 7 bullet payments
Working capital
loan *
8.07%
2,864
2,864
-
-
-
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
Amounts due on
factoring
8.70%
22
22
-
-
-
Repayable within one month
(C in crore)
Borrowings
Weighted
average of
interest as at
31 March 2023
Total
carrying
value
<1
year
1-3
years
3-5
years
>5
years
Remarks
Deferred sales tax
liability
NA
28
18
10
-
-
Repayable in 43 monthly installments
Redeemable
preference shares
NA
2
2
-
-
-
The redemption and dividend paid to the preference
shares unclaimed if any, is payable on claim.
Non-convertible
bonds
0.28%**
35
3
9
7
15
Repayable in 10 annual installments starting from
FY 2023-24
Others
5.00%
493
493
-
-
-
Repayable in 1 year as per lender's demand
Total
66,182 22,776 18,270 14,937 10,424
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 C 2,255 crore
** Increasing interest rate to 0.50% till maturity
g)
Movement in borrowings during the period is provided below -
(C in crore)
Particulars
Short term
borrowing
Long term
borrowing*
Total
Opening balance at 01 April 2022
7,434
45,675
53,109
Net cash inflow/ (outflow)
4,576
8,160
12,736
Other non-cash changes
(232)
(254)
(486)
Foreign exchange currency translation differences
680
143
823
As at 31 March 2023
12,458
53,724
66,182
Opening balance at 01 April 2023
12,458
53,724
66,182
Net cash inflow/ (outflow)
(8,148)
12,963
4,815
Other non-cash changes
(47)
815
768
Foreign exchange currency translation differences
1
(8)
(7)
As at 31 March 2024
4,264
67,494
71,758
*including Current maturities of Long term borrowing
Other non-cash changes include amortisation of borrowing costs and foreign exchange difference on borrowings.
h)
In December 2021, the Company executed a C 8,000 crore facility agreement with Union Bank of India Limited to take
over a long term syndicated facility of C 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 6.10% (31 March 2023: 6.77%) 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 2024, the outstanding loan amount under the facility is C 6,400 crore (31 March 2023: C 7,240 crore).
452
453
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
20 Financial liabilities -Trade payables
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Undisputed dues
Unbilled dues
2,304
2,319
Not due
3,132
3,380
Less than 1 year
4,069
4,690
1-2 years
170
144
2-3 years
88
108
More than 3 years
110
94
Sub-total
9,873
10,735
Disputed dues
Less than 1 year
50
106
1-2 Years
26
28
2-3 years
25
21
More than 3 years
121
153
Sub-total
222
308
Total
10,095
11,043
a)
Trade payables are majorly non-interest bearing and are normally settled upto 180 days (31 March 2023: 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 4.85% - 8.43% (31 March 2023: 0.69% - 7.80% ) per annum and in rupee from domestic banks at
interest rate ranging from 6.25% - 10.00% (31 March 2023: 4.34% - 8.80%) per annum. These trade credits are largely repayable
within 180 days from the date of draw down. Operational Buyers' credit availed in foreign currency is backed by Standby Letter of
Credit issued under working capital facilities sanctioned by domestic banks. Part of these facilities are secured by first pari passu
charge over the present and future current assets of the Group.
22 Financial liabilities - Others
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Liabilities for capital expenditure
162
10,189
10,351
1,241
10,076
11,317
Security deposits from vendors and others
-
328
328
-
307
307
Interest accrued but not due
-
835
835
-
691
691
Put option liability with non-controlling
interest a
-
264
264
41
219
260
Unpaid/unclaimed dividend
-
158
158
-
145
145
Profit petroleum payable
-
3,401
3,401
-
2,869
2,869
Dues to related parties (Refer note 42)
-
131
131
-
279
279
Dividend payable
-
(1)
(1)
-
8,223
8,223
Other liabilities b
331
2,264
2,595
324
2,052
2,376
Total
493
17,569
18,062
1,606
24,861
26,467
a)
The non-controlling shareholders of ASI have an option to sell their shareholding to the Group. The option is exercisable at any time within
the period of three years following the fifth anniversary of the date of shareholders’ agreement (22 December 2017) at a price higher
of C 52 (US$ 0.757) per share and the fair market value of the share. Therefore, the liability is carried at higher of the two. Subsequent
changes to the put option liability are treated as equity transaction and hence accounted for in equity.
b)
Includes revenue received in excess of entitlement interest of C 484 crore (31 March 2023: C 487 crore) of which C 295 crore (31 March 2023:
C 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 :
(C in crore)
Particulars
Amount
At 01 April 2022
474
Additions during the year
143
Interest on lease liabilities
14
Payments made a
(182)
FCTR and other adjustments
(3)
As at 31 March 2023
446
Additions during the year
945
Interest on lease liabilities
50
Payments made a
(382)
FCTR and other adjustments
(46)
As at 31 March 2024
1,013
a)
Includes payment of interest on lease liabilities of C 50 crore (31 March 2023: C 14 crore)
24 Financial instruments
A.
Financial assets and liabilities:
The accounting classification of each category of financial instruments, their carrying amounts and their fair values are set
out below:
As at 31 March 2024
(C in crore)
Financial Assets
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
Investments*
7,117
4,749
-
-
11,866
11,866
Trade receivables
196
-
-
5,820
6,016
6,016
Loans
-
-
-
3,369
3,369
3,369
Other financial assets
-
-
-
15,427
15,427
15,427
Derivatives
67
-
104
-
171
171
Cash and cash equivalents
-
-
-
2,812
2,812
2,812
Other bank balances
-
-
-
1,515
1,515
1,515
Total
7,380
4,749
104
28,943
41,176
41,176
(C in crore)
Financial Liabilities
Fair value
through profit
or loss
Derivatives
designated
as hedging
instruments
Amortised
cost
Others***
Total
carrying
value
Total fair
value
Borrowings
-
-
71,758
-
71,758
72,024
Trade payables
555
-
9,540
-
10,095
10,095
Operational buyers' credit / suppliers' credit
-
-
14,935
-
14,935
14,935
Derivatives
61
83
-
-
144
144
Other financial liabilities**
-
-
18,811
264
19,075
19,075
Total
616
83
1,15,044
264
1,16,007
1,16,273
454
455
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
As at 31 March 2023
(C in crore)
Financial Assets
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
Investments*
8,676
4,473
-
-
13,149
13,149
Trade receivables
385
-
-
6,161
6,546
6,546
Loans
-
-
-
3,770
3,770
3,770
Other financial assets
-
-
-
11,652
11,652
11,652
Derivatives
87
-
127
-
214
214
Cash and cash equivalents
-
-
-
6,926
6,926
6,926
Other bank balances
-
-
-
2,328
2,328
2,328
Total
9,148
4,473
127
30,837
44,585
44,585
(C in crore)
Financial Liabilities
Fair value
through profit
or loss
Derivatives
designated
as hedging
instruments
Amortised
cost
Others***
Total
carrying
value
Total fair
value
Borrowings
-
-
66,182
-
66,182
66,109
Trade payables
988
-
10,055
-
11,043
11,043
Operational buyers' credit / suppliers' credit
-
-
13,701
-
13,701
13,701
Derivatives
71
142
-
-
213
213
Other financial liabilities**
-
-
26,653
260
26,913
26,913
Total
1,059
142
1,16,591
260
1,18,052
1,17,979
* Investments exclude equity investment in associates and joint ventures which are accounted as per the equity method of accounting.
**Includes lease liability of C 1,013 crore (31 March 2023: C 446 crore)
*** Represents net put option liability with non-controlling interests accounted for at fair value.
B.
Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
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)
The below table summarises the categories of financial assets and liabilities as at 31 March 2024 and 31 March 2023
measured at fair value:
As at 31 March 2024
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
At fair value through profit or loss
Investments
2,659
3,796
662
Derivative financial assets
-
67
-
Trade receivables
-
196
-
At fair value through other comprehensive income
Investments
53
4,596
100
Derivatives designated as hedging instruments
Derivative financial assets
-
104
-
Total
2,712
8,759
762
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
At fair value through profit or loss
Derivative financial liabilities
-
61
-
Trade payables
-
555
-
Derivatives designated as hedging instruments
Derivative financial liabilities
-
83
-
Other financial liabilities - Net put option liability with non-controlling interests
accounted for at fair value.
-
-
264
Total
-
699
264
As at 31 March 2023
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
At fair value through profit or loss
Investments
4,563
3,834
279
Derivative financial assets
-
87
-
Trade receivables
-
385
-
At fair value through other comprehensive income
Investments
70
4,392
11
Derivatives designated as hedging instruments
Derivative financial assets
-
127
-
Total
4,633
8,825
290
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
At fair value through profit or loss
Derivative financial liabilities
-
71
-
Trade payable
-
988
-
Derivatives designated as hedging instruments
Derivative financial liabilities
-
142
-
Other financial liabilities - Net put option liability with non-controlling interests
accounted for at fair value.
-
-
260
Total
-
1,201
260
Reconciliation of Level 3 fair value measurement
(C in crore)
At 01 April 2022
41
Investments made during the year
249
As at 31 March 2023
290
Investments made during the year
480
Investments redeemed during the year
(8)
As at 31 March 2024
762
456
457
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
The below table summarises the fair value of loans and borrowings which are carried at amortised cost as at 31 March
2024 and 31 March 2023
As at 31 March 2024
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
Loans*
-
3,369
-
Total
-
3,369
-
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
Borrowings
-
72,024
-
Total
-
72,024
-
As at 31 March 2023
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
Loans*
-
3,770
-
Total
-
3,770
-
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
Borrowings
-
66,109
-
Total
-
66,109
-
*Refer note 42 (J)
The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The following methods
and assumptions were used to estimate the fair values:
•
Investments traded in active markets are determined by reference to quoted prices in an active market in case of listed
securities and by quotes from the financial institutions; for example: Net asset value (NAV) for investments in mutual
funds declared by mutual fund house. For other listed securities traded in markets which are not active, the quoted price
is used wherever the pricing mechanism is same as for other marketable securities traded in active markets. Other
investments, inputs for which are not based on observable market data (unobservable inputs), are valued on the basis
of net assets value method.
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).
•
Trade receivables, cash and cash equivalents, other bank balances, other financial assets, current borrowings, trade
payables, operational buyers' credit and other current financial liabilities: Fair values approximate their carrying amounts
largely due to the short-term maturities of these instruments.
•
Non-current fixed-rate and variable-rate borrowings: Fair value has been determined using discounted cash flow
model based on parameters such as interest rates, specific country risk factors, and the risk characteristics of the
financed project.
•
Derivative financial assets/liabilities: The Group executes derivative financial instruments with various counterparties.
Interest rate swaps, foreign exchange forward contracts and commodity forward contracts are valued using valuation
techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques
include the forward pricing and swap models, using present value calculations. The models incorporate various
inputs including foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis
spreads between the respective currencies, interest rate curves and forward rate curves of the underlying commodity.
Commodity contracts are valued using the forward LME rates of commodities actively traded on the listed metal
exchange, i.e., London Metal Exchange, United Kingdom (U.K.).
•
Other non-current financial assets and liabilities: Fair value is calculated using a discounted cash flow model with
market assumptions, unless the carrying value is considered to approximate to fair value.
For all other financial instruments, the carrying amount is either the fair value, or approximates the fair value.
The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives
designated in hedge relationship and the value of other financial instruments recognised at fair value.
The estimated fair value amounts as at 31 March 2024 and 31 March 2023 have been measured as at respective date.
As such, the fair values of these financial instruments subsequent to reporting date may be different than the amounts
reported at each period-end.
There were no significant transfers between Level 1, Level 2 and Level 3 during the year.
C.
Risk management framework
The Group’s businesses are subject to several risks and uncertainties including financial risks.
The Group’s documented risk management policies act as an effective tool in mitigating the various financial risks to
which the businesses are exposed in the course of their daily operations. The risk management policies cover areas
such as liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty credit risk and capital
management. Risks are identified at both the corporate and individual subsidiary level with active involvement of senior
management. Each operating subsidiary in the Group has in place risk management processes which are in line with the
Group’s policy. Each significant risk has a designated ‘owner’ within the Group at an appropriate senior level. The potential
financial impact of the risk and its likelihood of a negative outcome are regularly updated.
The risk management process is coordinated by the Management Assurance function and is regularly reviewed by the
Group’s Audit 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
Executive Committee. The overall internal control environment and risk management programme including financial risk
management is reviewed by the Audit Committee on behalf of the Board.
The risk management framework aims to:
- improve financial risk awareness and risk transparency
- identify, control and monitor key risks
- identify risk accumulations
- provide management with reliable information on the Group’s risk situation
- improve financial returns
Treasury management
Treasury management focuses on liability management, capital protection, liquidity maintenance and yield maximisation.
The treasury policies are approved by the Committee of the Board. Daily treasury operations of the subsidiary companies
are managed by their respective finance teams within the framework of the overall Group treasury policies. Long-term
fund raising including strategic treasury initiatives are managed jointly by the business treasury team and the central
team at corporate treasury while short-term funding for routine working capital requirements is delegated to subsidiary
companies. A monthly reporting system exists to inform senior management of the Group’s investments and debt
position, exposure to currency, commodity and interest rate risk and their mitigants including the derivative position. The
Group has a strong system of internal control which enables effective monitoring of adherence to Group’s policies. The
internal control measures are effectively supplemented by regular internal audits.
The Group uses derivative instruments to manage the exposure in foreign currency exchange rates, interest rates
and commodity prices. The Group does not acquire or issue derivative financial instruments for trading or speculative
purposes. The Group does not enter into complex derivative transactions to manage the treasury and commodity risks.
Both treasury and commodities derivative transactions are normally in the form of forward contracts, interest rate and
currency swaps and these are in line with the Group's policies.
458
459
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Commodity price risk
The Group is exposed to the movement of base metal commodity prices on the London Metal Exchange. Any decline in the
prices of the base metals that the Group produces and sells will have an immediate and direct impact on the profitability of
the businesses. As a general policy, the Group aims to sell the products at prevailing market prices. The commodity price
risk in imported input commodity such as Alumina, anodes, etc., for our aluminium and Copper business respectively, is
hedged on back-to-back basis ensuring no price risk for the business. Hedging is used primarily as a risk management
tool and, in some cases, to secure future cash flows in cases of high volatility by entering into forward contracts or similar
instruments. The hedging activities are subject to strict limits set out by the Board and to a strictly defined internal control
and monitoring mechanism. Decisions relating to hedging of commodities are taken at the Executive Committee level,
basis clearly laid down guidelines.
Whilst the Group aims to achieve average LME prices for a month or a year, average realised prices may not necessarily
reflect the LME price movements because of a variety of reasons such as uneven sales during the year and timing
of shipments.
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
The Group’s custom refining copper operations at Silvassa is benefitted by a natural hedge except to the extent of a
possible mismatch in quotational periods between the purchase of anodes / blisters and the sale of finished copper.
The Group’s policy on custom smelting is to generate margins from Refining Charges or "RCs”, improving operational
efficiencies, minimising conversion cost, generating a premium over LME on sale of finished copper, sale of by-products
and from achieving import parity on domestic sales. Hence, mismatches in quotational periods are managed to ensure
that the gains or losses are minimised. The Group hedges this variability of LME prices through forward contracts and tries
to make the LME price a pass-through cost between purchases of anodes / blisters and sales of finished products, both of
which are linked to the LME price.
RCs are a major source of income for the Indian copper refining operations. Fluctuations in RCs are influenced by factors
including demand and supply conditions prevailing in the market for smelters output. The Group’s copper business has a
strategy of securing a majority of its anodes / blisters feed requirement under long-term contracts with smelters / traders.
Zinc, lead and silver
The sales prices are linked to the LME prices. The Group also 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 natural
gas. This could be owing to difficulties in large-scale transportation over long distances as compared to crude oil. Globally,
there are three main regional hubs for pricing of natural gas, which are USA (Henry Hub Prices), UK (NBP Price) and Japan
(imported gas price, mostly linked to crude oil).
Provisionally priced financial instruments
On 31 March 2024, the value of net financial liabilities linked to commodities (excluding derivatives) accounted for on
provisional prices was C 359 crore (31 March 2023: C 603 crore). These instruments are subject to price movements at
the time of final settlement and the final price of these instruments will be determined in the financial year beginning 01
April 2024.
Set out below is the impact of 10% increase in LME prices on pre-tax profit for the year and pre-tax equity as a result of
changes in value of the Group’s commodity financial instruments:
(C in crore)
For the year ended 31 March 2024
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
(590)
(59)
-
(C in crore)
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
Copper
(875)
(87)
-
The above sensitivities are based on volumes, costs, exchange rates and other variables and provide the estimated impact
of a change in LME prices on profit and equity assuming that all other variables remain constant. A 10% decrease in LME
prices would have an equal and opposite effect on the Group’s financial statements.
The impact on pre-tax profit/(loss) mentioned above includes the impact of a 10% increase in closing copper LME for
provisionally priced copper concentrate purchased at Copper division custom smelting operations in India of C 101
crore loss (31 March 2023: C 134 crore loss), which is pass through in nature and as such will not have any impact on
the profitability.
(a) Financial risk
The Group’s Board approved financial risk policies include monitoring, measuring and mitigating the liquidity, currency,
interest rate and counterparty risk. The Group does not engage in speculative treasury activity but seeks to manage risk
and optimise interest and commodity pricing through proven financial instruments.
Liquidity risk
The Company requires funds both for short-term operational needs as well as for long-term investment programmes
mainly in growth projects. The Company generates sufficient cash flows from the current operations which together with
460
461
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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.
During FY 2024, CRISIL Ratings has downgraded its rating on the long-term bank facilities and debt instruments of
the Company from ‘CRISIL AA’ to 'CRISIL AA-' while the rating on short-term facilities and commercial paper has been
reaffirmed at 'CRISIL A1+'. The ratings have also been placed on Watch with Developing Implications.
During FY2024, India Ratings has downgraded the Company’s rating on the long-term instruments from ‘IND AA’ to ‘IND
A+’ and on short-term facilities and commercial paper from ‘IND A1+’ to ‘IND A1’. The ratings have also been placed on
Watch with Developing Implications.
The ratings downgrade is driven by higher than expected leverage and increase in borrowing costs. However, they expect
reduced refinancing risk for VRL to support Vedanta’s financial flexibility, with improved access and cost of borrowing
from the banks and capital markets. The Rating Watch is due to the demerger announcement of the company as clarity on
allocation of assets and liabilities and it’s probable impact on liquidity of the company is awaited by the rating agencies.
Anticipated future cash flows, together with undrawn fund based committed facilities of ` 6,723 Crore, and cash, bank and
other non-current and current investments of ` 15,424 Crore as at 31 March 2024, are expected to be sufficient to meet
the liquidity requirement of the Group in the near future.
The Group remains committed to maintaining a healthy liquidity, a low gearing ratio, deleveraging and strengthening
its balance sheet. The maturity profile of the Group’s financial liabilities based on the remaining period from the date of
balance sheet to the contractual maturity date is given in the table below. The figures reflect the contractual undiscounted
cash obligation of the Group.
As at 31 March 2024
(C in crore)
Payments due by year
<1 year
1-3 years
3-5 years
>5 years
Total
Borrowings*
33,732
32,267
15,602
22,995
104,597
Derivative financial liabilities
144
-
-
-
144
Lease liabilities
477
400
93
43
1,013
Trade Payables, Operational Buyers' Credit and Other
financial liabilities**
42,033
493
-
-
42,526
76,386
33,160
15,695
23,038
1,48,280
As at 31 March 2023
(C in crore)
Payments due by year
<1 year
1-3 years
3-5 years
>5 years
Total
Borrowings*
26,047
24,013
18,282
14,161
82,503
Derivative financial liabilities
193
20
-
-
213
Lease liabilities
302
109
5
30
446
Trade Payables, Operational Buyers' Credit and Other
financial liabilities**
49,153
300
1,241
-
50,694
75,695
24,442
19,528
14,191
1,33,856
* Includes non-current borrowings, current borrowings, committed interest payments on borrowings and interest accrued on borrowings.
** Includes both non-current and current financial liabilities and committed interest payment, as applicable. Excludes interest accrued on
borrowings.
The Group had access to following funding facilities:
As at 31 March 2024
(C in crore)
Funding facility
Level 1
Level 2
Level 3
Fund/non-fund based
97,629
82,932
14,697
As at 31 March 2023
(C in crore)
Funding facility
Level 1
Level 2
Level 3
Fund/non-fund based
95,678
80,760
14,918
(b) Foreign exchange risk
Fluctuations in foreign currency exchange rates may have an impact on the consolidated statement of profit and loss, the
consolidated statement of change in equity, where any transaction references more than one currency or where assets/
liabilities are denominated in a currency other than the functional currency of the respective consolidated entities.
Considering the countries and economic environment in which the Group operates, its operations are subject to risks
arising from the fluctuations primarily in the US dollar, Australian dollar, Namibian dollar, AED, ZAR, GBP, JPY, INR and Euro
against the functional currencies of Vedanta Limited and its subsidiaries.
Exposures on foreign currency loans are managed through the Group wide hedging policy, which is reviewed periodically to
ensure that the results from fluctuating currency exchange rates are appropriately managed. The Group strives to achieve
asset liability offset of foreign currency exposures and only the net position is hedged.
The Group’s presentation currency is the Indian Rupee (INR). The majority of the assets are located in India and the Indian
Rupee is the functional currency for the Indian operating subsidiaries except for Oil and Gas business operations which
have a US dollar functional currency. Natural hedges available in the business are identified at each entity level and hedges
are placed only for the net exposure. Short-term net exposures are hedged progressively based on their maturity. A more
conservative approach has been adopted for project expenditures to avoid budget overruns, where cost of the project is
calculated taking into account the hedge cost. The hedge mechanisms are reviewed periodically to ensure that the risk
from fluctuating currency exchange rates is appropriately managed.
The following analysis is based on the gross exposure as at the reporting date which could affect the consolidated
statement of profit and loss. The exposure is mitigated by some of the derivative contracts entered into by the Group as
disclosed under the section on “Derivative financial instruments".
The carrying amount of the Group's financial assets and liabilities in different currencies are as follows:
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Financial
Asset
Financial
liabilities
Financial
Asset
Financial
liabilities
INR
23,390
79,501
33,082
84,810
USD
16,618
32,238
10,515
30,012
Others
1,168
4,268
988
3,230
Total
41,176
1,16,007
44,585
1,18,052
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.
462
463
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Set out below is the impact of a 10% strengthening in the functional currencies of the respective businesses on pre-tax
profit and pre-tax equity arising as a result of the revaluation of the Group’s foreign currency monetary financial assets/
liabilities:
For the year ended 31 March 2024
(C in crore)
Effect of10% strengthening of
functional currency on pre-tax profit
Effect of 10% strengthening of
functional currency on equity
USD
1,190
-
INR
(19)
-
For the year ended 31 March 2023
(C in crore)
Effect of10% strengthening of
functional currency onpre-tax profit
Effect of 10% strengthening of
functional currency on equity
USD
1,408
-
INR
(631)
-
A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect on the
Group’s financial statements.
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.
(c) Interest rate risk
At 31 March 2024, the Group’s net debt of C 56,334 crore (31 March 2023: C 45,260 crore) comprises debt of C 71,758 crore
(31 March 2023: C 66,182 crore) offset by cash, bank and current investments of C 15,424 crore (31 March 2023:
C 20,922 crore).
The Group is exposed to interest rate risk on short-term and long-term floating rate instruments and on the refinancing of
fixed rate debt. The Group’s policy is to maintain a balance of fixed and floating interest rate borrowings and the proportion
of fixed and floating rate debt is determined by current market interest rates. The borrowings of the Group are principally
denominated in Indian Rupees and US dollars with mix of fixed and floating rates of interest. The USD floating rate debt
is linked to US dollar LIBOR and INR Floating rate debt to Bank’s base rate. The Group has a policy of selectively using
interest rate swaps, option contracts and other derivative instruments to manage its exposure to interest rate movements.
These exposures are reviewed by appropriate levels of management on a monthly basis. The Group invests cash and
liquid investments in short-term deposits and debt mutual funds, some of which generate a tax-free return, to achieve the
Group’s goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns.
Floating rate financial assets are largely mutual fund investments which have debt securities as underlying assets. The
returns from these financial assets are linked to market interest rate movements; however the counterparty invests in the
agreed securities with known maturity tenure and return and hence has manageable risk.
The exposure of the Group’s financial assets as at 31 March 2024 to interest rate risk is as follows:
(C in crore)
Total
Floating rate
financial assets
Fixed rate
financial assets
Non-interest bearing
financial assets
Financial Assets
41,176
2,695
16,051
22,430
The exposure of the Group’s financial liabilities as at 31 March 2024 to interest rate risk is as follows:
(C in crore)
Total
Floating rate
financial liabilities
Fixed rate
financial liabilities
Non-interest bearing
financial liabilities
Financial Liabilities
1,16,007
50,182
36,985
28,840
The exposure of the Group’s financial assets as at 31 March 2023 to interest rate risk is as follows:
(C in crore)
Total
Floating rate
financial assets
Fixed rate
financial assets
Non-interest bearing
financial assets
Financial Assets
44,585
4,673
16,175
23,737
The exposure of the Group’s financial liabilities as at 31 March 2023 to interest rate risk is as follows:
(C in crore)
Total
Floating rate
financial liabilities
Fixed rate
financial liabilities
Non-interest bearing
financial liabilities
Financial Liabilities
1,18,052
48,140
31,894
38,018
Considering the net debt position as at 31 March 2024 and the investment in Bank deposits, corporate bonds and debt
mutual funds, any increase in interest rates would result in a net loss and any decrease in interest rates would result
in a net gain. The sensitivity analysis below has been determined based on the exposure to interest rates for financial
instruments at the balance sheet date.
The table below illustrates the impact of a 0.5% to 2.0% movement in interest rates on floating rate financial assets/
liabilities (net) on profit/(loss) and equity assuming that the changes occur at the reporting date and has been calculated
based on risk exposure outstanding as of that date. The year end balances are not necessarily representative of the
average debt outstanding during the year. This analysis also assumes that all other variables, in particular foreign currency
rates, remain constant.
(C in crore)
Increase in interest rates
Effect on pre-tax profit/(loss) during
the year ended 31 March 2024
Effect on pre-tax profit/(loss) during
the year ended 31 March 2023
0.50%
(237)
(217)
1.00%
(475)
(435)
2.00%
(950)
(869)
An equivalent reduction in interest rates would have an equal and opposite effect on the Group’s financial statements.
(d) Counterparty and concentration of credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient, where
appropriate, as a means of mitigating the risk of financial loss from defaults.
The Group is exposed to credit risk from trade receivables, contract assets, investments, loans, other financial assets, and
derivative financial instruments.
Credit risk on receivables is limited as almost all credit sales are against letters of credit and guarantees of banks of
national standing.
Moreover, given the diverse nature of the Group’s businesses, trade receivables are spread over a number of customers
with no significant concentration of credit risk. The history of trade receivables shows a negligible provision for bad and
doubtful debts. Therefore, the Group does not expect any material risk on account of non-performance by any of the
Group’s counterparties.
The Group has clearly defined policies to mitigate counterparty risks. For short-term investments, counterparty limits are
in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of credit
risk for our mutual fund and bond investments. For derivative and financial instruments, the Group attempts to limit the
credit risk by only dealing with reputable banks and financial institutions.
The carrying value of the financial assets represents the maximum credit exposure. The Group’s maximum exposure to
credit risk is C 41,176 crore (31 March 2023: C 44,585 crore).
464
465
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
The maximum credit exposure on financial guarantees given by the Group for various financial facilities is described in
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, loans and other financial assets (both current and non-current), there were no indications as at the year end,
that defaults in payment obligations will occur except as described in Notes 8, 9 and 10 on allowance for impairment of
trade receivables and other financial assets.
Of the year end trade receivables, loans and other financial assets (excluding Bank deposits and site restoration fund)
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 2024 and 31 March 2023:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Neither impaired nor past due
12,381
13,793
Past due but not impaired
- Less than 1 month
1,242
1,116
- Between 1–3 months
464
235
- Between 3–12 months
3,337
327
- Greater than 12 months
5,151
4,581
Total
22,575
20,052
Receivables are deemed to be past due or impaired with reference to the Group’s normal terms and conditions of
business. These terms and conditions are determined on a case to case basis with reference to the customer’s credit
quality and prevailing market conditions. Receivables that are classified as ‘past due’ in the above tables are those that
have not been settled within the terms and conditions that have been agreed with that customer. The Group based on past
experiences does not expect any material loss on its receivables.
The credit quality of the Group’s customers is monitored on an ongoing basis. Where receivables have been impaired, the
Group actively seeks to recover the amounts in question and enforce compliance with credit terms.
Movement in allowances for Financial Assets (Trade receivables and Financial assets - others)
The change in the allowance for financial assets (current and non-current) is as follows:
(C in crore)
Funding facility
Trade
receivables
Financial assets
- Others
Financial assets
- Loans
As at 01 April 2022
1,080
1,048
78
Allowance made during the year
356
0
0
Reversals/ write-off during the year
(40)
(225)
-
Exchange differences
0
49
9
As at 31 March 2023
1,396
872
87
Allowance made during the year
280
217
0
Reversals/ write-off during the year
(581)
(1)
-
Exchange differences
0
8
1
As at 31 March 2024
1,095
1,096
88
D
Derivative financial instruments
The Group uses derivative instruments as part of its management of exposure to fluctuations in foreign currency
exchange rates, interest rates and commodity prices. The Group does not acquire or issue derivative financial instruments
for trading or speculative purposes. The Group does not enter into complex derivative transactions to manage the treasury
and commodity risks. Both treasury and commodities derivative transactions are normally in the form of forward contracts
and these are subject to the Group guidelines and policies.
The fair values of all derivatives are separately recorded in the consolidated balance sheet within current and non-current
assets and liabilities. Derivatives that are designated as hedges are classified as current or non-current depending on the
maturity of the derivative.
The use of derivatives can give rise to credit and market risk. The Group tries to control credit risk as far as possible
by only entering into contracts with reputable banks and financial institutions. The use of derivative instruments is
subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and
monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated
by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk
management purposes.
Cash flow hedges
The Group enters into forward exchange and commodity price contracts for hedging highly probable forecast transaction
and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognised
in equity through OCI until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to
profit or loss. These hedges have been effective for the year ended 31 March 2024 and 31 March 2023.
The Group uses foreign exchange contracts from time to time to optimise currency risk exposure on its foreign
currency transactions. The Group hedged part of its foreign currency exposure on capital commitments during the
year ended 31 March 2024 and 31 March 2023. Fair value changes on such forward contracts are recognised in other
comprehensive income.
The majority of cash flow hedges taken out by the Group during the year comprise non-derivative hedging instruments for
hedging the foreign exchange rate of highly probable forecast transactions and commodity price contracts for hedging the
commodity price risk of highly probable forecast transactions.
The cash flows related to above are expected to occur during the year ending 31 March 2024 and consequently may
impact profit or loss for that year depending upon the change in the commodity prices and foreign exchange rates
movements. For cash flow hedges regarded as basis adjustments to initial carrying value of the property, plant and
equipment, the depreciation on the basis adjustments made is expected to affect profit or loss over the expected useful life
of the property, plant and equipment.
Fair value hedges
The fair value hedges relate to forward covers taken to hedge currency exposure and commodity price risks.
The Group’s sales are on a quotational period basis, generally one month to three months after the date of delivery at a
customer’s facility. The Group enters into forward contracts for the respective quotational period to hedge its commodity
price risk based on average LME prices. Gains and losses on these hedge transactions are substantially offset by the
amount of gains or losses on the underlying sales. Net gains and losses are recognised in the consolidated statement of
profit and loss.
The Group uses foreign exchange contracts from time to time to optimise currency risk exposure on its foreign currency
transactions. Fair value changes on such forward contracts are recognised in the consolidated statement of profit and loss.
Non-designated economic hedges
The Group enters into derivative contracts which are not designated as hedges for accounting purposes, but provide an
economic hedge of a particular transaction risk or a risk component of a transaction. Hedging instruments include copper,
aluminium future contracts on the LME and certain other derivative instruments. Fair value changes on such derivative
instruments are recognised in the consolidated statement of profit and loss.
466
467
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
The fair value of the Group’s derivative positions recorded under derivative financial assets and derivative financial
liabilities are as follows:
(C in crore)
Derivative Financial Instruments
As at 31 March 2024
As at 31 March 2023
Assets
Liabilities
Assets
Liabilities
Current
Cash flow hedge*
- Commodity contracts
-
22
38
33
Fair Value hedge
- Commodity contracts
96
48
85
71
- Forward foreign currency contracts
5
13
4
18
Non - qualifying hedges/economic hedge
- Commodity contracts
58
3
52
-
- Forward foreign currency contracts
9
58
35
71
Sub-total (A)
168
144
214
193
Non-current
Fair Value hedge
- Forward foreign currency contracts
3
-
-
20
Sub-total (B)
3
-
-
20
Total (A+B)
171
144
214
213
* Refer the Consolidated Statement of Profit and Loss and the Consolidated Statement of Changes in Equity for the change in the fair
value of cash flow hedges.
25 Provisions
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Provision for employee benefits a
(Refer note 33)
- Retirement benefit
231
52
283
218
63
281
- Others
12
183
195
14
174
188
Provision for restoration, rehabilitation and
environmental costs b
2,862
20
2,882
3,194
30
3,224
Other provisions b
-
86
86
-
114
114
Total
3,105
341
3,446
3,426
381
3,807
a)
Provision for employee benefits includes gratuity, compensated absences, deferred cash bonus etc.
(C in crore)
b)
Particulars
Restoration, rehabilitation
and environmental
costs (Refer c)
Others
(Refer d)
As at 01 April 2022
3,246
112
Additions
45
5
Amounts utilised
(20)
-
Unused amounts reversed
-
(2)
Unwinding of discount (Refer note 34)
96
-
Revision in estimates
(296)
(1)
Exchange differences
153
-
As at 31 March 2023
3,224
114
Additions
7
5
Amounts utilised
(14)
(33)
Unwinding of discount (Refer note 34)
135
-
Revision in estimates
(333)
-
Disposals
(151)
-
Exchange differences
14
-
As at 31 March 2024
2,882
86
c)
Restoration, rehabilitation and environmental costs
The provisions for restoration, rehabilitation and environmental liabilities represent the management’s best estimate of the
costs which will be incurred in the future to meet the Group’s obligations under existing Indian, Australian, Namibian, South
African and Irish law and the terms of the Group’s exploration and other licences and contractual arrangements.
Within India, the principal restoration and rehabilitation provisions are recorded within Oil & Gas business where a
legal obligation exists relating to the oil and gas fields, where costs are expected to be incurred in restoring the site of
production facilities at the end of the producing life of an oil field. The Group recognises the full cost of site restoration as a
liability when the obligation to rectify environmental damage arises.
These amounts are calculated by considering discount rates within the range of 1% to 15% and are payable upon mine
closure These costs are expected to be spread out over a period of one to forty-seven years. The lower end of the discount
rate is seen at ASI, Oil and Gas business, and Zinc International operations in Ireland, while the higher end is observed at
ESL Steels and Zinc International operations in African countries.
d)
Other provisions
Other provisions include provision for disputed cases and claims.
26 Other liabilities
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Amount payable to owned post-employment
benefit trust
-
25
25
-
32
32
Other statutory liabilities a
-
2,846
2,846
-
3,805
3,805
Deferred government grants b
4,208
288
4,496
4,309
282
4,591
Advance from customer c
950
8,076
9,026
-
8,931
8,931
Advance from related party
-
3
3
-
3
3
Other liabilities
-
239
239
-
185
185
Total
5,158
11,477
16,635
4,309
13,238
17,547
a)
Statutory liabilities mainly includes payables for Provident fund, ESIC, withholding taxes, goods and services tax, VAT, service tax, etc.
b)
Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG) Scheme and SEZ
scheme on purchase of property, plant and equipment accounted for as government grant and being amortised over the useful life of such
assets.
c)
Advance from customers are contract liabilities to be settled through delivery of goods. The amount of such balances as on 01 April 2022
was C 4,531 crore. During the current year, the Group has recognised revenue of C 8,954 crore (31 March 2023: C 4,380 crore) out of opening
balances. All other changes are either due to receipt of fresh advances or exchange differences.
27 Revenue from operations
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Sale of products (Refer note 36(a))
1,40,049
1,43,535
Sale of services
321
326
Revenue from contingent rents
1,423
1,543
Total
1,41,793
1,45,404
a)
Revenue from sale of products and from sale of services for the year ended 31 March 2024 includes revenue from
contracts with customers of C 1,42,513 crore (31 March 2023: C 1,45,984 crore) and a net loss on mark-to-market of
C 2,143 crore (31 March 2023: C 2,123 crore) on account of gains/ losses relating to sales that were provisionally priced as
at 31 March 2023 with the final price settled in the current year, gains/ losses relating to sales fully priced during the year,
and marked to market gains/ losses relating to sales that were provisionally priced as at 31 March 2024.
468
469
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 significant
financing component as payment terms are within the normal credit period.
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
AS 115 and dispensed with the additional disclosures with respect to performance obligations that remained unsatisfied
(or partially unsatisfied) at the balance sheet date. Further, since the terms of the contracts directly identify the transaction
price for each of the completed performance obligations, in all material respects, there are no elements of transaction
price which have not been included in the revenue recognised in the financial statements.
Further, there is no material difference between the contract price and the revenue from contract with customers.
28 Other operating income
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Export incentives
379
483
Scrap sales
911
781
Miscellaneous income
644
640
Total
1,934
1,904
29 Other Income
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Net gain on investment measured at FVTPL
128
74
Interest income from investments measured at FVTPL
303
504
Interest income from investments measured at FVOCI
369
281
Interest income from financial assets at amortised cost
- Bank deposits
208
379
- Loans (Refer note 42)
452
560
- Others
301
372
Interest on income tax refund
53
166
Dividend income from
- financial assets at FVTPL
40
21
- financial assets at FVOCI
1
-
Deferred government grant income
308
273
Gain on loss of control on subsidiary (Refer note 4(D))
178
-
Miscellaneous income
209
221
Total
2,550
2,851
30 Changes in inventories of finished goods and work-in-progress*
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening Stock:
Finished Goods
1,028
829
Work in Progress
5,081
5,040
Total
6,109
5,869
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Add: Foreign exchange translation
(19)
15
(Less): Capitalisation and other adjustments
(237)
(152)
(Less): Impairment of inventory
(48)
-
Less: Closing Stock
Finished Goods
963
1,028
Work in Progress
4,666
5,081
Total
5,629
6,109
Changes in inventory
176
(377)
* Inventories include goods-in-transit
31 Employee benefits expense a
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Salaries and wages
3,172
2,988
Share based payments
70
77
Contributions to provident and other funds
265
268
Staff welfare expenses
348
334
Less: Cost allocated/directly booked in joint ventures
(555)
(569)
Total
3,300
3,098
(a) net of capitalisation of C 62 crore (31 March 2023: C 158 crore).
32 Share based payments
The Company offers equity based and cash based option plans to its employees, officers and directors through the Company's
stock option plan introduced in 2016 and Cairn India's stock option plan now administered by the Company pursuant to 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 ESOS schemes are administered through
VESOS trust and have underlying Vedanta Limited equity shares.
Options granted during the year ended 31 March 2024 and year ended 31 March 2023 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 C 1 per share and the performance period is three years, with no re-testing being allowed.
470
471
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
The details of share options for the year ended 31 March 2024 is presented below:
Financial
Year of
Grant
Exercise Period
Options
outstanding
01 April
2023
Options
granted
during the
year
Options
forfeited/
lapsed during
the year
Options
exercised
during the
year
Options
outstanding
31 March
2024
Options
exercisable
31 March
2024
2018-19
01 November 2021 - 30 April 2022
41,450
-
-
1,094
40,356
40,356*
2019-20
29 November 2022 - 28 May 2023
11,52,087
-
70,526
10,81,561
-
-
2020-21
06 November 2023 - 05 May 2024
83,25,751
-
41,53,161
26,54,818
15,17,772
15,17,772
2020-21
Cash settled
6,17,641
-
2,90,080
-
3,27,561
-
2021-22
01 November 2024 - 30 April 2025
95,21,390
-
12,96,014
-
82,25,376
-
2021-22
Cash settled
7,07,700
-
96,000
-
6,11,700
-
2022-23
01 November 2025 - 30 April 2026
1,35,26,444
-
18,59,760
-
1,16,66,684
-
2022-23
Cash settled
10,16,571
-
3,02,791
-
7,13,780
-
2023-24
04 November 2026 - 04 May 2027
-
1,81,38,912
9,61,371
-
1,71,77,541
-
2023-24
Cash Settled
-
35,07,647
1,61,810
-
33,45,837
-
3,49,09,034 2,16,46,559
91,91,513
37,37,473
4,36,26,607
15,58,128
*Options for some employees could not be exercised within exercise period due to technical issues.
The details of share options for the year ended 31 March 2023 is presented below:
Financial
Year of
Grant
Exercise Period
Options
outstanding
01 April
2022
Options
granted
during the
year
Options
forfeited/
lapsed during
the year
Options
exercised
during the
year
Options
outstanding
31 March
2023
Options
exercisable
31 March
2023
2018-19
01 November 2021 - 30 April 2022
3,23,015
-
-
2,81,565
41,450
41,450
2019-20
29 November 2022 - 28 May 2023
1,14,81,718
-
61,53,328
41,76,303
11,52,087
11,52,087
2019-20
Cash settled
6,80,401
-
3,58,428
3,21,973
-
-
2020-21
06 November 2023 - 05 May 2024
1,08,07,521
-
24,81,770
-
83,25,751
-
2020-21
Cash settled
7,24,923
-
1,07,282
-
6,17,641
-
2021-22
01 November 2024 - 30 April 2025
1,13,04,599
-
17,83,209
-
95,21,390
-
2021-22
Cash settled
8,41,767
-
1,34,067
-
7,07,700
-
2022-23
01 November 2025 - 30 April 2026
-
1,44,37,268
9,10,824
-
1,35,26,444
-
2022-23
Cash settled
-
10,35,172
18,601
-
10,16,571
-
3,61,63,944 1,54,72,440
1,19,47,509
47,79,841
3,49,09,034
11,93,537
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.
The assumptions used in the calculations of the charge in respect of the ESOS options granted during the years ended 31
March 2024 and 31 March 2023 are set out below:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
ESOS 2023
ESOS 2022
Number of Options
Cash settled -
35,07,647
equity settled -
18,138,912
Cash settled -
1,035,172
equity settled -
14,437,268
Exercise Price
C 1
C 1
Share Price at the date of grant
C 232.75
C 286.90
Contractual Life
3 years
3 years
Expected Volatility
41.16%
50.95%
Expected option life
3 years
3 years
Expected dividends
14.94%
7.11%
Risk free interest rate
7.18%
7.07%
Expected annual forfeitures
10% p.a
10% p.a
Fair value per option granted (Non-market performance based)
C 121.98
C 182.46
Weighted average share price at the date of exercise of stock options was C 210.15 (31 March 2023: C 303.80)
The weighted average remaining contractual life for the share options outstanding was 1.87 years (31 March 2023: 1.76 years).
The Group recognised total expenses of C 92 crore (31 March 2023: C 85 crore) related to equity settled share-based payment
transactions for the year ended 31 March 2024. The total expense recognised on account of cash settled share based plan
during the year ended 31 March 2024 is C 10 crore (31 March 2023: C 1 crore) and the carrying value of cash settled share
based compensation liability as at 31 March 2024 is C 15 crore (31 March 2023: C 11 crore).
Employee stock option plans of erstwhile Cairn India Limited:
The Company has provided CIESOP share based payment scheme to its employees.
CIESOP plan
There are no specific vesting conditions under CIESOP plan other than completion of the minimum service period of 3 years
from the date of grant. Phantom options are exercisable proportionate to the period of service rendered by the employee
subject to completion of one year. The exercise period is 7 years from the vesting date which was completed in the year 2022-
23. There was no new grant during the year.
Details of employees stock option plans is presented below
(C in crore)
CIESOP Plan
Year ended 31 March 2024
Year ended 31 March 2023
Number of
options
Weighted
average exercise
price in C
Number of
options
Weighted
average exercise
price in C
Outstanding at the beginning of the year
-
-
10,37,641
286.85
Granted during the year
-
-
Nil
NA
Expired during the year
-
-
Nil
NA
Exercised during the year
-
-
2,66,914
286.85
Forfeited / cancelled during the year
-
-
7,70,727
286.85
Outstanding at the end of the year
-
-
-
-
Exercisable at the end of the year
-
-
-
-
472
473
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Weighted average share price at the date of exercise of stock options and exercise price for stock options during the year ended
31 March 2023 was C 411.80 and C 286.85 respectively.
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 2024 is C (9) crore (31 March 2023: C (5) crore) and the carrying value of cash settled share based
compensation liability as at 31 March 2024 is C 33 crore (31 March 2023: C 44 crore).
Out of the total expense of C 93 crore (31 March 2023: C 80 crore) pertaining to equity settled and cash settled options for the
year ended 31 March 2024 the Group has capitalised C 3 crore (31 March 2023: C 3 crore).
33 Employee Benefit Plans
The Group participates in defined contribution and benefit plans, the assets of which are held (where funded) in separately
administered funds.
For defined contribution plans, the amount charged to the consolidated statement of profit and loss is the total amount of
contributions payable in the year.
For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation separately each
year for each plan using the projected unit credit method by independent qualified actuaries as at the year end. Remeasurement
gains and losses arising in the year are recognised in full in other comprehensive income for the year.
i)
Defined contribution plans
The Group contributed a total of C 152 crore and C 146 crore for the year ended 31 March 2024 and 31 March 2023
respectively to the following defined contribution plans.
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Employer’s contribution to recognised provident fund and family pension fund
118
118
Employer’s contribution to superannuation
25
21
Employer’s contribution to National Pension Scheme
9
7
152
146
Indian pension plans
Central recognised provident fund
In accordance with the ‘The Employee's Provident Funds and Miscellaneous Provisions Act, 1952’, employees are entitled
to receive benefits under the Provident Fund. Both the employee and the employer make monthly contributions to the
plan at a predetermined rate (12% for 2024 and 2023) 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 the GoI beyond its
monthly contributions which are charged to the consolidated statement of profit and loss in the year they are incurred.
Family pension fund
The Pension Fund was established in 1995 and is managed by the Government of India. The employee makes no
contribution to this fund but the employer makes a contribution of 8.33% of salary each month subject to a specified
ceiling per employee (included in the 12% rate specified above). This is provided for every permanent employee on
the payroll.
At the age of superannuation, contributions ceases and the individual receives a monthly payment based on the level of
contributions through the years, and on their salary scale at the time they retire, subject to a maximum ceiling of salary
level. The Government funds these payments, thus the Group has no additional liability beyond the contributions that it
makes, regardless of whether the central fund is in surplus or deficit.
Superannuation
Superannuation, another pension scheme, is applicable only to executives above certain grade. However, in case of the
oil & gas business (applicable from the second year of employment) and Iron Ore Segment, the benefit is applicable to all
executives. Vedanta Limited and each relevant Indian subsidiary holds a policy with Life Insurance Corporation of India
(“LIC”), to which each of these entities contributes a fixed amount relating to superannuation and the pension annuity is
met by LIC as required, taking into consideration the contributions made. The Group has no further obligations under the
scheme beyond its monthly contributions which are charged to the consolidated statement of profit and loss in the year
they are incurred.
National Pension Scheme
National Pension Scheme is a retirement savings account for social security and welfare applicable for executives covered
under the superannuation benefit of Vedanta Limited and each relevant Indian subsidiary, on a choice basis. It was
introduced to enable employees to select the treatment of superannuation component of their fixed salaries and avail the
benefits offered by National Pension Scheme launched by Government of India. Vedanta Limited and each relevant entity
holds a corporate account with one of the pension fund managers authorised by the Government of India to which each of
the entity contributes a fixed amount relating to superannuation and the pension annuity will be met by the fund manager
as per rules of National Pension Scheme. The Group has no further obligations under the scheme beyond its monthly
contributions which are charged to the consolidated statement of profit and loss in the year they are incurred.
Australian pension scheme
The Group also participates in defined contribution superannuation schemes in Australia. The contribution of a proportion
of an employee’s salary in a superannuation fund is a compulsory legal requirement in Australia. The employer contributes,
into the employee’s fund of choice, 10.00% (2023: 10.00%) of an employee’s gross remuneration where the employee
is covered by an industrial agreement and 13.00% (2023: 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 profit and loss in the year
they are incurred.
Skorpion Zinc Provident Fund, Namibia
The Skorpion Zinc Provident Fund is a defined contribution fund and is compulsory to all full time employees under the
age of 60. The Group contribution to the fund is a fixed percentage of 9% per month of pensionable salary, whilst the
employee contributes 7% with the option of making additional contributions, over and above the normal contribution, up to
a maximum of 12%.
Normal retirement age is 60 years and benefit payable is the member’s fund credit which is equal to all employer and
employee contributions plus interest. The same applies when an employee resigns from Skorpion Zinc. The Fund provides
disability cover which is equal to the member’s fund credit and a death cover of two times annual salary in the event of
death before retirement.
The Group has no additional liability beyond the contributions that it makes. Accordingly, this scheme has been accounted
for on a defined contribution basis and contributions are charged directly to the consolidated statement of profit and loss
in the year they are incurred.
Black Mountain (Pty) Limited, South Africa Pension and Provident Funds
Black Mountain Mining (Pty) Ltd has two retirement funds, both administered by Alexander Forbes, a registered financial
service provider. The purpose of the funds is to provide retirement and death benefits to all eligible employees.
The Group contributes at a fixed percentage of 15% for pension fund and 12.5% for provident fund.
Membership of both funds is compulsory for all permanent employees under the age of 60.
The Group has no additional liability beyond the contributions that it makes. Accordingly, this scheme has been accounted
for on a defined contribution basis and contributions are charged directly to the consolidated statement of profit and loss
in the year they are incurred.
474
475
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 employer
shall make good deficiency, if any, between the return guaranteed by the statute and actual earning of the Fund. Based
on actuarial valuation in accordance with Ind AS 19 and 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 2024 and 31 March 2023. Having regard to the
assets of the fund and the return on the investments, the Group does not expect any deficiency in the foreseeable future.
The Group contributed a total of C 62 crore for the year ended 31 March 2024 and C 78 crore for the year ended 31 March
2023 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.
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Fair value of plan assets of trusts
2,696
2,626
Present value of defined benefit obligation
(2,652)
(2,618)
Net liability arising from defined benefit obligation
NIL
NIL
(C in crore)
Percentage allocation of plan assets of the trust
Year ended
31 March 2024
Year ended
31 March 2023
Assets by category
Government Securities
21.09%
45.15%
Debentures / bonds
69.67%
38.32%
Equity
8.70%
16.53%
Money Market Instruments
0.00%
0.00%
Fixed deposits
0.54%
0.00%
(b) Post-Retirement Medical Benefits:
The Group has a scheme of medical benefits for employees at BMM and BALCO subsequent to their retirement on
completion of tenure including retirement on medical grounds and voluntary retirement on contributory basis. The
scheme includes an employee’s spouse as well. Based on an actuarial valuation conducted as at year-end, a provision
is recognised in full for the benefit obligation. The obligation relating to post-retirement medical benefits as at 31 March
2024 was C 92 crore (31 March 2023: C 101 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’. The current service cost for the year ending 31 March 2024 of C 2 crore (31 March 2023: C 1 crore) has been
recognised in consolidated statement of profit and loss. The remeasurement losses and net interest on the obligation of
post-retirement medical benefits of C (13) crore (31 March 2023: C 1 crore) and C 9 crore (31 March 2023: C 9 crore) for the
year ended 31 March 2024 have been recognised in other comprehensive income and finance cost respectively.
(c) Other Post-employment Benefits:
India - Gratuity plan
In accordance with the Payment of Gratuity Act of 1972, Vedanta Limited and its Indian subsidiaries contribute to a
defined benefit plan (the “Gratuity Plan”) covering certain categories of employees. The Gratuity Plan provides a lump
sum payment to vested employees at retirement, disability or termination of employment being an amount based on the
respective employee’s last drawn salary and the number of years of employment with the Group.
Based on actuarial valuations conducted as at year end using the projected unit credit method, a provision is recognised in
full for the benefit obligation over and above the funds held in the Gratuity Plan. For entities where the plan is unfunded, full
provision is recognised in the consolidated balance sheet.
The iron ore and oil & gas division of Vedanta Limited, SRL, SMCL, HZL and FACOR have constituted a trust recognised
by Income Tax Authorities for gratuity to employees and contributions to the trust are funded with the Life Insurance
Corporation of India (LIC), ICICI Prudential Life Insurance Company Limited (ICICI) and HDFC Life Insurance Company
Limited (HDFC).
Principal actuarial assumptions
Principal actuarial assumptions used to determine the present value of the Other post-employment benefit plan obligation
are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Discount rate
7.10%
7.39%
Expected rate of increase in compensation level of covered employees
2%-15%
2%-15%
Mortality table
IALM (2012-14)
IALM (2012-14)
Amount recognised in the consolidated balance sheet consists of:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Fair value of plan assets
459
443
Present value of defined benefit obligations
(650)
(623)
Net liability arising from defined benefit obligation
(191)
(180)
Amounts recognised in the consolidated statement of profit and loss in respect of Other post-employment benefit plan
are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Current service cost
49
43
Net interest cost
14
12
Components of defined benefit costs recognised in consolidated statement of profit and loss
63
55
Amounts recognised in other comprehensive income in respect of Other post-employment benefit plan are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Re-measurement of the net defined benefit obligation:-
Actuarial losses arising from changes in financial assumptions
9
1
Actuarial losses arising from experience adjustments
6
9
Actuarial losses arising from changes in demographic assumptions
4
(3)
Actuarial losses on plan assets (excluding amounts included in net interest cost)
2
3
Components of defined benefit costs recognised in Other comprehensive income
21
10
The movement of the present value of the Other post-employment benefit plan obligation is as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening balance
623
599
Current service cost
49
43
Benefits paid
(86)
(71)
Interest cost
45
42
Actuarial losses arising from changes in assumptions
19
10
Closing balance
650
623
476
477
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
The movement in the fair value of Other post-employment benefit plan assets is as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening balance
440
441
Contributions received
67
28
Benefits paid
(77)
(54)
Re-measurement loss arising from return on plan assets
(2)
(3)
Interest income
31
31
Closing balance
459
443
The above plan assets have been invested in the qualified insurance policies.
The actual return on plan assets was C 29 crore (31 March 2023: C 28 crore).
The weighted average duration of the defined benefit obligation is 12.45 years (31 March 2023: 11.58 years).
The Group expects to contribute C 34 crore to the funded defined benefit plans during the year ending 31 March 2025.
Sensitivity analysis for Defined Benefit Plan
Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined benefit
obligation and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting
period while holding all other assumptions constant.
(C in crore)
Particulars
Increase/(Decrease) in defined
benefit obligation
Year ended
31 March 2024
Year ended
31 March 2023
Discount rate
Increase by 0.50%
(28)
(24)
Decrease by 0.50%
30
26
Expected rate of increase in compensation level of covered employees
Increase by 0.50%
26
23
Decrease by 0.50%
(25)
(22)
The above sensitivity analysis may not be representative of the actual benefit obligation as it is unlikely that the change in
assumptions would occur in isolation of one another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the
projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined
obligation liability recognised in the consolidated balance sheet.
Maturity analysis of defined benefit obligation
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Less than 1 year
63
73
1-2 years
58
68
2-5 years
145
153
More than 5 years
384
329
650
623
Risk analysis
Group is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined benefit
plans and management estimation of the impact of these risks are as follows:
Investment risk
Most of the Indian defined benefit plans are funded with the LIC, ICICI and HDFC. The Group does not have any liberty to
manage the fund provided to LIC, ICICI and HDFC.
The present value of the defined benefit plan obligation is calculated using a discount rate determined by reference to
Government of India bonds for the Group’s Indian operations. If the return on plan asset is below this rate, it will create a
plan deficit.
Interest risk
A decrease in the interest rate on plan assets will increase the net plan obligation.
Longevity risk / Life expectancy
The present value of the defined benefit plan obligation is calculated by reference to the best estimate of the mortality of
plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants
will increase the plan obligation.
Salary growth risk
The present value of the defined benefit plan obligation is calculated by reference to the future salaries of plan participants.
An increase in the salary of the plan participants will increase the plan obligation.
#
Code on Social Security, 2020
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been
issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the
period the Code becomes effective.
34 Finance cost
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Interest expense on financial liabilities at amortised cost b
9,235
6,212
Other finance costs
1,033
380
Net interest on defined benefit arrangement
23
21
Unwinding of discount on provisions
135
96
Less: Capitalisation of finance cost/borrowing cost
(960)
(483)
Less: Cost allocated/directly booked in joint ventures
(1)
(1)
Total
9,465
6,225
a)
Interest rate of 8.65% (31 March 2023: 6.75%) was used to determine the amount of general borrowing costs eligible for capitalisation in
respect of qualifying asset for the year ended 31 March 2024.
b)
Interest expense on income taxes is C 192 crore (31 March 2023: C 77 crore).
c)
Interest expense on lease liabilities for the year ended is C 50 crore (31 March 2023: C 14 crore).
478
479
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
35 Other expenses
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Cess on crude oil
3,688
3,238
Royalty
6,249
5,860
Consumption of stores and spare parts
3,631
3,769
Share of expenses in producing oil and gas blocks
3,486
3,593
Repairs to plant and equipment
3,636
3,332
Repairs to building
226
277
Repairs others
194
213
Carriage
2,285
2,827
Mine expenses
3,601
3,163
Net loss on foreign currency transactions and translations
263
554
Other selling expenses
3
29
Insurance
278
292
Loss on sale/disposal of fixed asset (net)
114
9
Rent*
55
61
Rates and taxes
222
39
Exploration costs written off
786
327
Provision for doubtful advances/ expected credit loss/ bad debts written off a
261
426
Miscellaneous expenses b, c
8,629
7,097
Less: Cost allocated/directly booked in joint ventures
(332)
(418)
Total
37,275
34,688
*Rent represents expense on short term/ low value leases.
a Includes bad debts written off of ` 913 crore against the provision for expected credit loss.
b Includes contributions to political parties of C 98 crore (31 March 2023: C 155 crore).
c Includes Management and Brand fees expense (net) of C 2,865 crore (31 March 2023: C 2,082 crore). Refer note 42.
36 Exceptional items
(C in crore)
Particulars
Year ended 31 March 2024
Year ended 31 March 2023
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
Exceptional
items
Tax effect of
Exceptional
items
Exceptional
items after
tax
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
- Reversal of previously recorded impairment a
1,179
(413)
766
-
-
-
- Copper (refer note 3(c)(A)(iii))
(746)
188
(558)
-
-
-
- Aluminium b
(131)
33
(98)
-
-
-
- Zinc International
(117)
-
(117)
-
-
-
- Iron Ore
- Reversal of previously recorded impairment of
assets in Liberia on commencement of mining
operations c
-
-
-
644
-
644
- Others
-
-
-
109
(38)
71
- Unallocated
- Foreign currency translation reserve recycled
to profit or loss on redemption of optionally
convertible redeemable preference shares d
1,825
-
1,825
-
-
-
Capital creditors written back in Power segment e
793
(200)
593
-
-
-
SAED on Oil and Gas sector f
-
-
-
(970)
312
(658)
Total
2,803
(392)
2,411
(217)
274
57
a)
The Government of India ("GoI"), acting through the Directorate General of Hydrocarbons ("DGH"), had raised demand up
to 14 May 2020 for Government’s additional share of Profit Oil, based on its computation of disallowance of cost incurred
over retrospective re-allocation of certain common costs between Development Areas (DAs) of Rajasthan Block and
certain other matters aggregating to C 9,545 crore (US$ 1,162 million) and applicable interest thereon representing share of
Vedanta Limited and its subsidiary.
The Group had disputed the aforesaid demand and invoked arbitration as per the provisions of the Production Sharing
Contract. The Group had received the Final Partial Award dated 22 August 2023 from the Arbitration Tribunal (‘the
Tribunal') as amended by order dated 15 November, 2023 and 08 December 2023 (“the Award”) , dismissing the
Government’s contention of additional Profit Petroleum in relation to allocation of common development costs across
Development Areas and certain other matters in accordance with terms of the Production Sharing Contract for Rajasthan
Block, while disallowing some matters. Further, the Tribunal had decided that the Group was allowed to claim cost
recovery of exploration cost for the purpose of computation of Profit Oil.
Pursuant to the Award, the Group has recognised a benefit of C 4,761 crore (US$ 578 million) in revenue from operations
and reversed previously recognised impairment on PPE of C 1,179 crore (US$ 143 million) during the year ended
31 March 2024.
GoI has sought an additional award or interpretation/ clarification on certain matters decided by the Tribunal under the
Indian Arbitration and Conciliation Act, 1996 ("the Act") (“GoI Application”). The Tribunal vide its order dated 15 November
2023 and 08 December 2023 has dismissed GoI’s interpretation and additional award applications in favour of the Group.
The Group has adjusted the liability during the current year of C 1,940 crore (US$ 233 million) against the aforesaid benefits
recognised as per the Award.
GoI has filed interim relief application on 03 February 2024 stating that the Group has unilaterally enforced the award
although the quantification of the same is pending.
The Group is of the view that it is bound to implement the award. Further, the application by GoI does not meet the strict
criteria for grant of interim injunction. The matter was heard on 26 March 2024 and order of the Tribunal is awaited.
GoI also has filed an appeal on 07 March 2024 against the Award in Delhi High Court and the matter was heard on 14
March 2024. No stay was granted and petition was not admitted. Next date of hearing is 01 May 2024. The Group is of
the view that there is no merit in the challenge filed by GoI, as the Court cannot re-appreciate the evidence in Section 34
appeal as the interpretation by the Tribunal is plausible.
b)
Represents certain items of CWIP, which have been written off during the year ended 31 March 2024 as they are no longer
expected to be used.
c)
During the year ended 31 March 2023, WCL had 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 had been assessed at C 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 was 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 C 50 crore and an increase in the discount rate by 1% would lead to a decrease in the
recoverable value by C 74 crore.
Accordingly, the impairment recorded in previous years had been reversed, to an extent of C 644 crore pertaining only to
the assets of the Bomi Mine.
480
481
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
d)
The Company recorded reversal of previously recognised impairment on investments in OCRPS of C 860 crore and
C 3,187 crore in THL Zinc Holding BV ("THLZBV") and THL Zinc Ventures Limited ("THLZVL"), wholly owned subsidiaries of
the Company during the year ended 31 March 2024 and 31 March 2023, respectively in the statement of profit and loss.
Further, the above investment in OCRPS of THLBV and THLZVL was redeemed during the current year, pursuant to which
C 1,825 crore being the proportionate share of FCTR in the subsidiaries has been recycled to the consolidated statement of
profit and loss.
e)
During the year, the Group has terminated its contract with one of its capital contractor due to its continuing failure in
fulfilling contractual obligations impacting plant performance since inception and written back creditors amounting to
C 1,252 crore pertaining to the contract, as amount is no longer payable. The management has assessed that the amount
written back comprises C 793 crore toward loss of profit due to plant performance in the current and earlier years and
therefore recognised the same as exceptional gain in the statement of profit and loss and adjusted the balance amount
towards the cost of spares and ancillaries capitalised in PPE in earlier years.
f)
GoI vide its notification dated 30 June 2022 levied Special Additional Excise Duty ("SAED") on production of crude oil, i.e.,
cess on windfall gain triggered by increase in crude oil prices which was effective from 01 July 2022. The consequential
net impact of the said duty had on the results was presented as an exceptional item for the year ended 31 March
2023. SAED is continuing as levy like other duty of excise, that forms part of ordinary business of production of crude
oil and hence, consequential impact of the said duty has been presented as an ordinary item during the year ended 31
March 2024.
37 Tax
(a) Tax charge/(credit) recognised in profit or loss (including on exceptional items)
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Current tax:
Current tax on profit for the year
5,877
7,739
Expense/(benefit) in respect of current tax for earlier years
29
(115)
Benefit in respect of exceptional items (Refer note 36)
(33)
(1,543)
Effect of change in Tax Regime**
(1,786)
-
Total Current Tax (a)
4,087
6,081
Deferred tax:
Reversal/ (benefit) of temporary differences
436
(1,503)
Benefit in respect of deferred tax for earlier years
(36)
(77)
Reversal in respect of exceptional items (Refer note 36)
425
1,269
Effect of change in Tax Regime**
7,914
-
Deferred Tax (b)
8,739
(311)
Total income tax expense for the year (a+b)
12,826
5,770
Profit before tax
20,363
20,276
Effective income tax rate (%)
63%
28%
Tax expense/ (benefit)
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Tax effect on exceptional items
392
(274)
Effect of change in Tax Regime**
6,128
-
Tax expense- others
6,306
6,044
Net tax expense
12,826
5,770
(b) A reconciliation of income tax expense applicable to profit before tax at the Indian statutory income tax rate to recognise
income tax expense for the year indicated are as follows
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Profit before tax
20,363
20,276
Indian statutory income tax rate
25.17%
34.94%
Tax at statutory income tax rate
5,125
7,085
Non-taxable income
84
(94)
Tax holidays and similar exemptions
0
(534)
Effect of tax rate differences of subsidiaries operating at other tax rates
936
97
Unrecognised tax assets (net) *
445
63
Change in deferred tax balances due to change in tax law
11
(288)
Capital gains/ Other income subject to lower tax rate
(24)
(522)
Credit in respect of earlier years
(7)
(192)
Impact of change in tax regime**
6,128
-
Other permanent differences
128
155
Total
12,826
5,770
* Includes Deferred Tax Assets written-off in ESL Steel Limited. Refer note 3(c)(A)(ii).
**Pursuant to the introduction of Section 115BAA of the Income-tax Act, 1961 ("New Tax Regime"), the Company has an option to pay
corporate income tax at a lower rate of 22% plus applicable surcharge and cess as against the currently applicable rate of 30% plus
surcharge and cess. Under the New Tax Regime, provisions of Section 115 JB-Minimum Alternate Tax (MAT) are no longer applicable.
In the quarter ended 30 September 2023, the Company has elected to adopt New Tax Regime from FY 2022-23 onwards due to expected
corporate actions and other considerations and the first tax return under the New Tax Regime was filed for FY 2022-23 on 29 November
2023. Upon adoption of New Tax Regime for FY 2022-23, the current tax charge is lower by C 1,786 crore (mainly on account of section
80M benefit not available under MAT) and deferred tax charge is higher by C 151 crore. Further, the MAT credit balance of C 7,763 crore, for
periods up to 31 March 2023, has been expensed. Consequently, the net impact of the above amounting to C 6,128 crore is accounted for as
exceptional tax expense in the current year ended 31 March 2024.
Accordingly, current year tax expense is not comparable with the reported tax expense for the year ended 31 March 2023.
(c) Deferred tax assets/liabilities
The Group has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents accelerated
tax relief for the depreciation of property, plant and equipment, depreciation of mining reserves and the fair value uplifts
created on acquisitions net of deferred tax assets representing unabsorbed depreciation and carried forward losses.
Significant components of Deferred tax (assets) and liabilities recognised in the consolidated balance sheet are as follows:
For the year ended 31 March 2024
(C in crore)
Significant components of Deferred tax
(assets) and liabilities
Opening
balance as
at 01 April
2023*
Charged /
(credited) to
statement
of profit or
loss
Charged/
(credited)
to other
comprehensive
income#
Charged /
(credited)
to equity
Exchange
difference
and other
adjustments
Closing
balance as
at 31 March
2024
Property, Plant and Equipment
12,415
(311)
-
-
9
12,113
Voluntary retirement scheme
(25)
7
-
-
-
(18)
Employee benefits
(356)
(8)
(7)
-
1
(370)
Fair valuation of derivative asset/liability
(75)
26
(15)
-
-
(64)
Fair valuation of other asset/liability
760
266
-
-
(102)
924
MAT credit entitlement
(7,960)
7,957
-
-
3
-
Unabsorbed depreciation and business
losses
(4,888)
533
-
-
3
(4,352)
Other temporary differences
(1,023)
269
(14)
-
(2)
(770)
Total
(1,152)
8,739
(36)
-
(88)
7,463
# Out of total tax benefit on items of OCI in Statement of Profit and Loss, deferred tax benefit is shown in above table. Balance tax benefit
is of current tax nature on foreign currency translation difference.
482
483
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
For the year ended 31 March 2023
(C in crore)
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
and other
adjustments
Closing
balance as
at 31 March
2023*
Property, Plant and Equipment
11,506
957
-
-
(48)
12,415
Voluntary retirement scheme
(39)
14
-
-
-
(25)
Employee benefits
(377)
20
(11)
7
5
(356)
Fair valuation of derivative asset/liability
(97)
28
(6)
-
-
(75)
Fair valuation of other asset/liability
628
126
-
-
6
760
MAT credit entitlement
(6,746)
(1,164)
(50)
-
-
(7,960)
Unabsorbed depreciation and tax losses
(4,490)
(398)
-
-
-
(4,888)
Other temporary differences
(1,035)
106
(32)
-
(62)
(1,023)
Total
(650)
(311)
(99)
7
(99)
(1,152)
*Restated, refer note 4(A)
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:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Deferred tax assets
(2,689)
(7,074)
Deferred tax liabilities
10,152
5,922
Net Deferred tax assets
7,463
(1,152)
*Restated, refer note 4(A)
Deferred tax assets in the Group have been recognised to the extent there are sufficient taxable temporary differences
relating to the same taxation authority and the same taxable entity which are expected to reverse. For certain components
of the Group, deferred tax assets on carry forward unused tax losses have been recognised to the extent of deferred tax
liabilities on taxable temporary differences available. It is expected that any reversals of the deferred tax liability would be
offset against the reversal of the deferred tax asset at respective entities.
Unused tax losses / unused tax credit for which no deferred tax asset has been recognised amount to C 9,106 crore and
C 7,335 crore as at 31 March 2024 and 31 March 2023 respectively.
As at 31 March 2024
(C in crore)
Unused tax losses/ unused tax credit
Within one
year
Greater than
one year, less
than five years
Greater than
five years
No expiry
date
Total
Unutilised business losses
318
3,472
2,810
-
6,600
Unabsorbed depreciation
-
-
-
2,506
2,506
Unutilised R&D credit
-
-
-
-
-
Total
318
3,472
2,810
2,506
9,106
As at 31 March 2023
(C in crore)
Unused tax losses/ unused tax credit
Within one
year
Greater than
one year, less
than five years
Greater than
five years
No expiry
date
Total
Unutilised business losses
689
2,621
2,040
-
5,350
Unabsorbed depreciation
-
-
-
1,985
1,985
Unutilised R&D credit
-
0
0
-
0
Total
689
2,621
2,040
1,985
7,335
No deferred tax assets has been recognised on these unused tax losses/ unused tax credit as there is no evidence that
sufficient taxable profit will be available in future against which these can be utilised by the respective entities.
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 C 24,222
crore and
C 24,130 crore as at 31 March 2024 and 31 March 2023 respectively.
(d) Non- current tax assets
Non- current tax assets of C 3,796 crore (31 March 2023: C 2,077 crore) mainly represents income tax receivable from
Indian tax authorities by Vedanta Limited relating to the refund arising due to change in Tax Regime and 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
80IC of the Income-tax Act, 1961. For AY 2009-10 to 2012-13, 2017-18 & 2018-19, Hon’ble Income Tax Appellate Tribunal
(ITAT) has allowed these claims. For AY 2013-14 to 2016-17, the cases are pending before Hon’ble ITAT. Against the
Tribunal order, the department had filed an appeal in Hon’ble Rajasthan High Court in FY 2017-18 (for AY 2009-10 to
AY 2012-13) and in FY 2023-24 (for AY 2017-18 and AY 2018-19) which are yet to be admitted. As per the view of external
legal counsel, Department’s appeal seeks re-examination of facts rather than raising any substantial question of law and
hence it is unlikely that appeal will be admitted by the High Court. Accordingly, there is a high probability that the case will
go in favor of the Group. The amount involved in this dispute as of 31 March 2024 is C 12,447 Crore (31 March 2023:
C 12,447 Crore) plus applicable interest upto the date of settlement of the dispute.
38 Earnings per equity share (EPS)
(C in crore, except otherwise stated)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Profit after tax attributable to equity share holders for Basic and Diluted EPS
A
4,239
10,574
Computation of weighted average number of shares
B
371.79
370.97
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
2.86
2.41
Adjusted weighted average number of shares of the Company in issue
C
374.64
373.39
Basic earnings per equity share (C)
A / B
11.42
28.50
Diluted earnings per equity share (C)
A / C
11.33
28.32
Nominal Value per Share (in C)
1.00
1.00
39 Distributions made and proposed
(C in crore, except otherwise stated)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Amounts recognised as distributions to equity share holders:
Interim dividends: C 29.50/- per share (31 March 2023: C 101.50/- per share)
10,959
37,658
Refund of dividend distribution tax
-
(86)
10,959
37,572
484
485
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
40 Commitments, contingencies and guarantees
A) Commitments
The Group has a number of continuing operational and financial commitments in the normal course of business including:
•
Exploratory mining commitments;
•
Oil and gas commitments;
•
Mining commitments arising under production sharing agreements; and
•
Completion of the construction of certain assets.
a)
Estimated amount of contracts remaining to be executed on capital accounts and not provided for:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Oil & Gas sector
Cairn India
1,079
1,412
Aluminium sector
Lanjigarh Refinery (Phase II)
1,557
2,439
Jharsuguda 1.25 MTPA smelter
545
1,266
BALCO smelter expansion 0.57 MTPA to 1 MTPA
5,186
6,700
Zinc sector
Zinc India (mines expansion and smelter)
2,010
1,750
Gamsberg mining and milling project (Phase II)
1,635
1,950
Copper sector
Tuticorin Smelter 400 KTPA*
-
3,066
Others
6,652
5,793
Total
18,664
24,376
* On 29 February 2024, Hon’ble Supreme Court dismissed the Special Leave Petition filed by the Company, pursuant to which the
Company has decided to terminate the contracts which were under suspension. Refer Note 3(c)(A)(iii)
b)
Committed work programme (Other than capital commitment):
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Oil & Gas sector
Cairn India (OALP - New Oil and Gas blocks)
5,073
5,184
c)
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%) at
variable cost as per the conditions referred to in PPA. The PPA has a tenure of twenty five years, expiring in 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 dated 05
October 2021 and directed the Company to operate Unit 2 as an IPP. Against the final order passed by the OERC, the
Company has preferred an appeal before Appellate Tribunal for Electricity on 03 May 2023.
(ii)
TSPL has signed a long term PPA with the Punjab State Power Corporation Limited (PSPCL) for supply of power
generated from the power plant. The PPA has tenure of twenty five years, expiring in FY 2042.
(iii) During the 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, Serentica Renewables India 8
Private Limited and Serentica Renewables India 9 Private Limited), which are associates of Volcan, for procuring
renewable power over twenty five years from date of commissioning of the combined renewable energy power
projects (“the Projects”) on a group captive basis. These Serentica group companies were incorporated for building
the Projects of approximately 1,826 MW (31 March 2023: 1,626 MW). During the current year, the Group has invested
C 480 crore in Optionally Convertible Redeemable Preference shares (“OCRPS”) of C 10 each of Serentica group
companies. These OCRPS will be converted into equity basis conversion terms of the PDA, resulting in Vedanta Group
holding twenty six percent stake in its equity. As at 31 March 2024, total outstanding commitments related to PDA
with Serentica Group Companies are C 1,227 crore (31 March 2023: C 1,598 crore).
B) Guarantees
The aggregate amount of indemnities and other guarantees on which the Group does not expect any material losses, was
C 9,348 crore (31 March 2023: C 8,470 crore).
a)
Guarantees and bonds advanced to the customs authorities in India of C 1,717 crore relating to the export and
payment of import duties on purchases of raw material and capital goods (31 March 2023: C 1,339 crore).
b)
Guarantees issued for Group’s share of minimum work programme commitments of C 3,071 crore (31 March 2023:
C 2,742 crore).
c)
Guarantees of C 158 crore issued under bid bond (31 March 2023: C 80 crore).
d)
Bank guarantees of C 115 crore (31 March 2023: C 115 crore) has been provided by the Group on behalf of Vedanta
Incorporated to Income tax department, India as a collateral in respect of certain tax disputes.
Other guarantees worth C 4,287 crore (31 March 2023: C 4,194 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 C 2,689 crore (31 March 2023: C 1,381 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 C 581 crore (31 March 2023: C 322
crore) reduced in proportion to actual exports, plus applicable interest.
The Group has given bonds of C 1,030 crore (31 March 2023: C 809 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 C 334 crore (31 March 2023: C 334 crore) claiming unlawful occupation and
unauthorised mining of associated minerals other than zinc and lead at HZL’s Rampura Agucha, Rajpura Dariba and Zawar
mines in Rajasthan during the period from July 1968 to March 2006. In response, HZL filed a writ petition against these show
cause notices before the High Court of Rajasthan in Jodhpur. In October 2006, the High Court issued an order granting a
stay and restrained the Department of Mines and Geology from undertaking any coercive measures to recover the penalty. In
January 2007, the High Court issued another order granting the Department of Mines and Geology additional time to file their
reply and also ordered the Department of Mines and Geology not to issue any orders cancelling the lease.
The State Government filed for an early hearing application in the High Court. The High Court has passed an order
rejecting the application stating that Central Government should file their replies. HZL believes it is unlikely that the claim
will lead to a future obligation and thus no provision has been made in these financial statements.
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Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 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 High Court and the next
appellate court in Malaysia i.e. Malaysian Court of Appeal. GoI then filed an appeal at Federal Court of Malaysia. The matter
was heard on 28 February 2019 and the Federal Court dismissed GoI’s leave to appeal. The Group has also filed for the
enforcement of the Partial Award and Final Award before the Hon'ble Delhi High Court. 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 C 533 crore (US$ 64 million) plus interest
(31 March 2023: C 526 crore (US$ 64 million) plus interest).
c)
Proceedings related to the imposition of entry tax
Vedanta Limited and other Group company, i.e., BALCO challenged the constitutional validity of the local statutes and
related notifications in the states of Odisha and Rajasthan pertaining to the levy of entry tax on the entry of goods brought
into the respective states from outside.
Post some contradictory orders of High Courts across India adjudicating on similar challenges, the Supreme Court referred
the matters to a nine judge bench. Post a detailed hearing, although the bench rejected the compensatory nature of tax as
a ground of challenge, it maintained status quo with respect to all other issues which have been left open for adjudication
by regular benches hearing the matters.
Following the order of the nine judge bench, the regular bench of the Supreme Court heard the matters and remanded the
entry tax matters relating to the issue of discrimination against domestic goods bought from other States to the respective
High Courts for final determination but retained the issue of jurisdiction for levy on imported goods, for determination
by the regular bench of the Supreme Court. Following the order of the Supreme Court, the Group filed writ petitions in
respective High Courts.
On 09 October 2017, the Supreme Court has held that states have the jurisdiction to levy entry tax on imported goods. With
this Supreme Court judgement, imported goods will rank pari-passu with domestic goods for the purpose of levy of Entry
tax. Vedanta Limited and its subsidiaries have amended their appeals (writ petitions) in Odisha and Chhattisgarh to include
imported goods as well.
The issue pertaining to the levy of entry tax on the movement of goods into a Special Economic Zone (SEZ) remains
pending before the Odisha High Court. The Group has challenged the levy of entry tax on any movement of goods into SEZ
based on the definition of ‘local area’ under the Odisha Entry Tax Act which is very clear and does not include a SEZ. In
addition, the Government of Odisha further through its SEZ Policy 2015 and the operational guidelines for administration of
this policy dated 22 August 2016, exempted the entry tax levy on SEZ operations.
The total claims against Vedanta Limited and its subsidiaries (net of provisions made) are C 800 crore (31 March 2023:
C 823 crore) including interest and penalty till the date of order. Further interest and penalty if any, would be additional.
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 is effectively
on production and not on consumption or sale since the figures of consumption are not taken into account and the Cess is
discriminatory since captive power plants are required to pay @ 10 paise while the State Electricity Board is required to pay
@ 5 paise. The High Court of Chhattisgarh by order dated 15 December 2006 declared the provisions imposing ED Cess
on CPPs as discriminatory and therefore ultra vires the Constitution. BALCO has sought refund of ED Cess paid till March
2006 amounting to C 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 C 1,179 crore (31 March
2023: C 1,091 crore). As at 31 March 2024, an amount of C 1,214 crore relating to principal has been considered as a
contingent liability (31 March 2023: C 1,126 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 C 888 crore and C 588 crore respectively for the period March 2015 to March 2021.
The Group carries an accrual for electricity duty of C 460 crore (31 March 2023: C 639 crore), net of C 942 crore (31 March
2023: C 570 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 be discussed
with appropriate authorities. As at 31 March 2024, no confirmation has been received on this matter and therefore an
amount of C 1,051 crore (31 March 2023: C 916 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 C 1,708 Crore towards penalty for annual
shortfall in minimum dispatch required under Sub Rule-1 of Rule 12(A) of MCR 2016, for the first year of the lease 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 operation for
significant part of the first year owing to reasons beyond its control (Force Majeure) and for the said the 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 dispatch requirement. Based on aforesaid grounds that are
supported by a legal opinion obtained in this regard, inter-alia, the Group has filed the 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, Ministry of Mines and the same has
been informed to Office of the Deputy Director of mines through intimation letter. 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 realise the demand till further orders.
Also, ESL has received the demand notices dated 11 April 2023 aggregating C 50 crore for the first quarter of the 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 Authority,
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Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
Ministry of Mines as the similar contentions were taken by the Management in the revision application filed against the
earlier demand notices for shortfall in the first year of lease period. 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.
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 C 1,758 crore (31 March 2023: C 1,758 crore) have been disclosed as contingent liability in the
financial statements.
g)
Miscellaneous disputes- Income tax
The Group is involved in various tax disputes amounting to C 1,354 crore (31 March 2023: C 1,455 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 C
4,683 crore (31 March 2023: C 4,907 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 have
a material adverse effect on the results of operations, cash flows or the financial position of the Group.
41 Other Matters
a)
The Group purchases bauxite under long term linkage arrangement ("LTL") with Orissa Mining Corporation Ltd (hereafter
referred as “OMC”) at provisional price of C 1,000/MT from October 2020 onwards based on interim order dated 08 October
2020 of the High Court of Odisha, which is subject to final outcome of the writ petition filed by the Group.
The last successful e-auction based price discovery was done by OMC in April 2019 at C 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 C 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 C 281 crore on the Group towards differential pricing and interest for bauxite supplied till
September 2020 considering the auction base price of C 1,707/MT.
The Group had then filed a writ petition before Hon'ble High Court of Odisha in September 2020, which issued 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 C 1,000/MT and furnishing an undertaking for the differential amount, subject to final outcome of the
writ petition.
OMC re-conducted e-auction on 09 March 2021 with floor price of C 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 @ C 1,000/MT will
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.
An interim application was filed on 11 May 2023 in Odisha High Court seeking directions for OMC to continue the supplies
for FY 2023-24 and extend the LTL agreement. Hon'ble High Court vide order dated 15 May 2023, passed an order that
unless the fresh agreement is not executed interim arrangement cannot be granted. Accordingly, as per the direction of
High Court, LTL was executed with OMC on 16 of May for supply of 2.4 MnT bauxite annually at C 1,000 MT. On
26 September 2023, OMC conducted the 10 National E-auction tender for sale of 300 KT bauxite at floor price of C 2,429/
MT after considering the pricing as per Rule 45. The said auction failed since no participation was observed in the bidding.
Supported by legal opinions, management believes that the provisions of Rule 45 of the Rules are not applicable to
commercial sale of bauxite ore and hence, it is not probable that the Group will have any financial obligation towards the
aforesaid commitments over and above the price of C 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 C 1,000/MT.
b)
The Department of Mines and Geology (DMG) of the State of Rajasthan initiated the royalty assessment process from
January 2008 to 2019 and issued a show cause notice vide an office order dated 31 January 2020 amounting to C 1,925
crore. Further, an additional demand was issued vide an office order dated 14 December 2020 for C 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 C 1,423 crore and the recovery of C 311 crore vide its order dated 15 June
2022 and 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 High Court of Madras and the 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 SLP 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 desulfurisation (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 is
to be modified or new equipment have to be installed. Timelines for compliance to the revised norm for various plants
in the Group range from December 2024 to December 2026. Different power plants are at different stages of the
implementation process.
TSPL filed a petition before Punjab State Electricity Regulatory Commission (PSERC) for approval of MoEF&CC notification
as change in law in terms of Article 13 of PPA on 30 June 2017. PSERC vide its order dated 21 December 2018 has held
that MoEF&CC notification is not a change in law as it does not impose any new requirements. TSPL had filed an appeal
before Appellate Tribunal for Electricity (APTEL) challenging the said order of PSERC. APTEL has pronounced the order
dated 28 August 2020 in favour of TSPL allowing the cost pass through.
PSPCL has filed an appeal against this order in the Supreme Court. The matter was listed on 03 February 2022 wherein
respondents including TSPL have been directed to file counter affidavits in the matter. On 09 November 2022, TSPL filed
its Counter Affidavit. The matter is listed for hearing.
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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.
The Group exercised the first call option on 29 August 2003 and acquired an additional 18.9% of HZL’s issued share
capital. The Group also acquired an additional 20% of the equity capital in HZL through an open offer, increasing
its shareholding to 64.9%. The second call option provides the 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, the Group
invoked arbitration which is in the early stages. The next date of hearing is to be notified. The Government of India
without prejudice to the position on the Put/Call option issue has received approval from the Cabinet for divestment
and the Government is looking to divest through the auction route. In January 2016, the Supreme Court had
directed status quo pertaining to disinvestment of Government of India’s residual shareholding in a public interest
petition filed.
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 GoI's policy of divestment, the Group in March 2001 acquired 51% equity interest in BALCO from
the GoI. Under the terms of the SHA, the Group had a call option to purchase the GoI remaining ownership interest
in BALCO at any point from 02 March 2004. The Group exercised this option on 19 March 2004. However, the GoI
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 GoI to transfer its shares and that as a result such provisions of
the SHA were null and void. In the arbitration filed by the Group, the arbitral tribunal by a majority award rejected the
claims of the Group on the ground that the clauses relating to the call option, the right of first refusal, the “tag along”
rights and the restriction on the transfer of shares violate the erstwhile Companies Act, 1956 and are not enforceable.
The Group has challenged the validity of the majority award before the High Court at Delhi and sought for setting
aside the arbitration award to the extent that it holds these clauses ineffective and inoperative. The GoI also filed
an application before the High Court to partially set aside the arbitral award in respect of certain matters involving
valuation. The matter is currently scheduled for hearing at the Delhi High Court. Meanwhile, the GoI 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 GoI's interests in HZL and BALCO for C 15,492 crore and C 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 GoI 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
GoI, 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, and hence the call
options have not been recognised in the financial statements.
42 Related party Disclosures
List of related parties and relationships
A)
Entities controlling the Company (Holding Companies)
Vedanta Incorporated (formerly known as Volcan Investments Limited) *
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#
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#
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
Sterlite Convergence Limited
STL Digital Limited
Sterlite Grid 16 Limited
Twin Star Technologies Limited
Vedanta Resources Investments Limited
C)
Associate of ultimate controlling party (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 6 Private Limited**
Serentica Renewables India 7 Private Limited**
Serentica Renewables India 8 Private Limited**
Serentica Renewables India 5 Private Limited**
Serentica Renewables India 9 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
492
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VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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 Metals LLC
Janhit Electoral Trust
Minova Runaya Private Limited
Radha Madhav Investments Private Limited
Runaya Refining LLP
Runaya Green Tech Limited
Runaya Private Limited
Sesa Community Development Foundation
Vedanta Foundation
Vedanta Limited ESOS Trust
Vedanta Medical Research Foundation
Voorspoed Trust
*
The name of ultimate holding Company "Volcan Investments Limited" has been changed to 'Vedanta Incorporated' effective 13 October 2023.
#
These entities are subsidiary companies of VRL and VRL through its certain subsidiaries holds 61.95% in the Company.
**
During the year ended 31 March 2023, due to change in shareholding of the intermediate holding company of Serentica group companies,
the relationship of Vedanta group with these companies was changed from fellow subsidiaries to associates of Vedanta Inc.
Ultimate Controlling party
Vedanta Limited is a majority-owned and controlled subsidiary of Vedanta Resources Limited (‘VRL’). Vedanta
Incorporated ("Vedanta Inc") and its wholly owned subsidiary together hold 100 % of the share capital and 100 % of the
voting rights of VRL. Vedanta Inc is 100 % beneficially owned and controlled by the Anil Agarwal Discretionary Trust
(‘Trust’). Vedanta Inc, Volcan Investments Cyprus Limited and other intermediate holding companies except VRL do not
produce Group financial statements.
G) A summary of significant related party transactions for the year ended 31 March 2024 are noted below.
Transactions and balances with own subsidiaries are eliminated on consolidation.
(C in crore)
Particulars
Entities controlling
the Company/
Fellow subsidiaries
Associates/
Joint
ventures
Others
Total
Income:
(i)
Revenue from operations
1,710
-
104
1,814
(ii)
Other income
a) Interest and guarantee commission
562
-
2
564
b) Outsourcing service fees
5
-
-
5
c) Dividend income
1
-
-
1
d) Miscellaneous income
-
-
1
1
Expenditure and other transactions:
(i)
Purchase of goods/ services M
124
3
391
518
(ii)
Management and brand fees (net*) J
2,865
-
-
2,865
(iii)
Reimbursement for other expenses (net of recovery)
2
-
(4)
(2)
(iv)
Corporate social responsibility expenditure/ Donation
-
-
147
147
(v)
Contribution to post retirement employee benefit trust/fund
-
-
100
100
(vi)
Remuneration to relatives of key management personnel
-
-
28
28
(vii)
Purchase/(sale) of fixed assets
0
-
(43)
(43)
(viii) Commission/sitting fees
-
To Non executive directors
-
-
6
6
-
To key management personnel
-
-
0
0
-
To relatives of key management personnel
-
-
1
1
(C in crore)
Particulars
Entities controlling
the Company/
Fellow subsidiaries
Associates/
Joint
ventures
Others
Total
(ix)
Dividend paid
-
To holding companies
7,289
-
-
7,289
-
To key management personnel and their relatives
-
-
1
1
-
To Non executive directors and their relatives
-
-
0
0
(x)
Interest and guarantee commission expense N
144
-
-
144
Other Transactions during the year:
(i)
Loans given during the year
0
-
-
0
(ii)
Loans repiad during the year L
(267)
-
-
(267)
(iii)
Investment purchased during the year (refer note 40)
-
-
480
480
(iv)
Loan taken during the year
7
-
-
7
Balances as at period end:
(i)
Trade receivables
14
10
30
54
(ii)
Loan given L,K
3,361
5
-
3,366
(iii)
Loan taken
7
-
-
7
(iv)
Other receivables and advances (including brand fee prepaid#) J,N
262
9
59
330
(iv)
Trade payables
16
-
45
61
(v)
Other payables
102
-
57
159
(vi)
Bank guarantee given I
115
-
-
115
(vii)
Sitting fee, remuneration, commission and consultancy fees
payable to KMP and their relatives
-
-
1
1
Remuneration of key management personnel
(C in crore)
Particulars
For the year ended
31 March 2024
Short-term employee benefits
43
Post employment benefits **
1
Share based payments
2
46
*
Net of discount earned on brand fees of C 146 crore during the current year ended 31 March 2024.
#
Net of refund received of C 1,030 crore against prepaid brand fee during the current year ended 31 March 2024.
**
Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees
together.
494
495
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
H)
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.
(C in crore)
Particulars
Entities controlling
the Company/
Fellow subsidiaries
Associates/
Joint
ventures
Others
Total
Income:
(i)
Revenue from operations
1,831
-
56
1,887
(ii)
Other income
a) Interest and guarantee commission
420
-
-
420
b) Outsourcing service fees
5
-
-
5
c) Dividend income
0
-
-
0
d) Miscellaneous income
-
-
1
1
Expenditure and other transactions:
(i)
Purchase of goods/ services M
13
4
283
300
(ii)
Management and brand fees J
2,082
-
-
2,082
(iii)
Reimbursement for other expenses (net of recovery)
(2)
-
(1)
(3)
(iv)
Corporate social responsibility expenditure/ Donation
-
-
77
77
(v)
Contribution to post retirement employee benefit trust/fund
-
-
78
78
(vi)
Remuneration to relatives of key management personnel
-
-
20
20
(vii)
Purchase of fixed assets
(19)
-
-
(19)
(viii) Commission/sitting fees
-
To Non executive directors
-
-
5
5
-
To key management personnel
-
-
0
0
-
To relatives of key management personnel
-
-
1
1
(ix)
Dividend paid
-
To holding companies
26,171
-
-
26,171
-
To key management personnel
-
-
2
2
-
To relatives of key management personnel
-
-
0
0
(x)
Interest and guarantee commission expense N
177
-
-
177
Other Transactions during the year:
(i)
Loans given/ (repayment thereof) L
(2,408)
5
-
(2,403)
(ii)
Financial guarantees relinquished during the year
-
-
(0)
(0)
(iii)
Investment purchased/ (redeemed) during the year
-
1
249
250
Balances as at period end:
(i)
Trade receivables
11
-
-
11
(ii)
Loan given L,K
3,749
9
-
3,758
(iii)
Other receivables and advances (including brand fee prepaid) J,N
1,664
9
33
1,706
(iv)
Trade payables
29
0
31
60
(v)
Other payables (including brand fee payable) J
270
-
44
314
(vi)
Bank guarantee given I
115
-
-
115
(vi)
Sitting fee, remuneration, commission and consultancy fees
payable to KMP and their relatives
-
-
7
7
(vii)
Dividend payable
-
To Holding companies
4,887
-
0
4,887
-
To key management personnel and their relatives
-
-
1
1
-
To Non executive directors and their relatives
-
-
0
0
Remuneration of key management personnel
(C in crore)
Particulars
For the year ended
31 March 2023
Short-term employee benefits
36
Post employment benefits *
1
Share based payments
4
41
*Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees
together.
I)
Bank guarantee given by Vedanta Limited on behalf of Vedanta Inc in favour of Income Tax department, India as collateral
in respect of certain tax disputes of Vedanta Inc.
J)
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%-3%
of turnover of the Company and certain subsidiaries. The Group has recorded an expense of C 2,326 crore (net of discount)
(31 March 2023: C 1,718 crore) for the year ended 31 March 2024. The Group generally pays such fee in advance, at the
beginning of the year based on estimated annual turnover.
Furthermore, during the year ended 31 March 2023, 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 agreed a
net sub-licensing fee of 1.70% of HZL’s annual consolidated turnover with VRL, resulting in an expense of C477 crore
(31 March 2023: C 270 crore) for the year ended 31 March 2024.
During the current year ended 31 March 2024, VRL has assigned the Agreement to its wholly owned subsidiary Vedanta
Resources Investments Limited (“VRIL”), whereby the Group will fulfil its future obligations under the Agreement via VRIL.
K)
During the current year ended 31 March 2024, 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 2024 is C 5 crore (31 March 2023: C 5 crore).
The loan is unsecured in nature and carries an interest rate of 12.80% 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 2024 is C 83 crore (US $10 million) (31 March 2023: C 82 crore (US $10 million)).
These loans including accrued interest thereon have been fully provided for in the books of accounts.
L)
During the year ended 31 March 2021, as part of its cash management activities, the overseas subsidiaries of the
Company extended certain loans and guarantee facilities to Vedanta Resources Limited (“VRL”) and its subsidiaries
(collectively “the VRL group”).
During the current year ended 31 March 2024, based on the request from the Borrower, the loan has been extended to
31 December 2024 at the prevailing arms-length interest rate with interest payable half-yearly. As the change in the net
present value of the loan is within the 10% threshold prescribed by Ind AS 109 Financial Instruments and the other terms
of the loan largely remain unchanged, the modification has been considered to be not substantial in nature. Consequently,
the net impact due to the modification and expected credit loss, aggregating to approx. C 38 crore (approx. US$ 5 million)
has been recognised as finance cost in the consolidated statement of profit and loss. Further, the borrower has prepaid the
loan principal amounting to ` 267 Crore in the current year.
As of 31 March 2024, loans having contractual value of C 3,473 crore (US$ 417 million) (31 March 2023: 3,689 crore
(US$ 449 million)) were outstanding from the VRL group at an interest rate of 17%.
496
497
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
M) During the year ended 31 March 2023, the Group executed an agency contract with VRL. Pursuant to which, the Group
procured calcined alumina amounting to C 1,054 crore (31 March 2023: C 735 crore) on which an agency commission of
C 5 crore (31 March 2023: C 4 crore) is paid to VRL.
N)
Vedanta Resources Limited (“VRL”), as a parent company, has provided financial and performance guarantee to the
Government of India for erstwhile Cairn India group’s (“Cairn”) obligations under the Production Sharing Contract (‘PSC’)
provided for onshore block RJ-ON-90/1, for making available financial resources equivalent to Cairn’s share for its
obligations under the PSC, personnel and technical services in accordance with industry practices and any other resources
in case Cairn is unable to fulfil its obligations under the PSC.
Similarly, VRL has also provided financial and performance guarantee to the Government of India for the Group’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, out of which 5 blocks were relinquished during the previous year
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 C 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 C 183 crore (US$ 25 million), i.e., 2.5% of the total estimated cost of initial exploration
phase of approximately C 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 C 80 crore (US$ 10 million) and maximum fee of C 160 crore (US$ 20 million)
per annum.
Accordingly, the Group has recorded a guarantee commission expense of C 144 crore ($ 17 million) (31 March 2023:
` 177 Crore ($ 23 million)) for the year ended 31 March 2024 and ` 57 Crore ($ 7 million) (31 March 2023: ` 75 Crore
($ 9 million)) is outstanding as a pre-payment as at 31 March 2024.
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
the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified
by or on behalf of the Group (Ultimate Beneficiaries). The Group has not received any fund from any party(s) (Funding
Party) with the understanding that the Group shall whether, directly or indirectly lend or invest in other persons or entities
identified by or on behalf of the Group (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of the
Ultimate Beneficiaries. Further, the additional regulatory information required by clause xiv of part Y of Schedule III to the
Act, for a subsidiary, is as follows: Sesa Resources Limited ("SRL"), a wholly owned subsidiary of the Group, has borrowed
` 1,600 Crore in March 2024 from a third party lender and has lent the funds to Vedanta Limited (ultimate beneficiary),
who has fully used these funds for its operations in the ordinary course of business. SRL has complied with the relevant
provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Act for the above transaction and the
transaction is not violative of the Prevention of Money-Laundering Act, 2002 (15 of 2003).
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.
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
2024
As at
31 March
2023
1
Copper Mines of Tasmania
Pty Limited ("CMY") (a)
Copper Mining
Australia
Monte Cello BV
-
100.00
2
Thalanga Copper Mines Pty
Limited ("TCM")
Copper Mining
Australia
Monte Cello BV
100.00
100.00
3
Bharat Aluminium Company
Limited ("BALCO")
Aluminium mining and smelting India
Vedanta Limited
51.00
51.00
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
2024
As at
31 March
2023
4
Desai Cement Company
Private Limited
Cement
India
Sesa Mining
Corporation Limited
100.00
100.00
5
ESL Steel Limited
Manufacturing of Steel & DI
Pipe
India
Vedanta Limited
95.49
95.49
6
Ferro Alloy Corporation
Limited ("FACOR")
Manufacturing of Ferro Alloys
and Mining and generation of
power
India
Vedanta Limited
99.99
99.99
7
Goa Sea Port Private
Limited(b)
Infrastructure
India
Sterlite Ports Limited
-
100.00
8
Hindustan Zinc Alloys Private
Limited
Manufacturing of metals and
its alloys
India
Hindustan Zinc
Limited
100.00
100.00
9
Hindustan Zinc Fertilisers
Private Limited
Manufacturing of phosphatic
fertilisers
India
Hindustan Zinc
Limited
100.00
100.00
10
Hindmetal Exploration
Services Private Limited (c)
Exploration of metals
India
Hindustan Zinc
Limited
100.00
-
11
Hindustan Zinc Limited
("HZL")
Exploring, extracting,
processing of minerals and
manufacturing of metals
India
Vedanta Limited
64.92
64.92
12
MALCO Energy Limited
("MEL")
Power Generation
India
Vedanta Limited
100.00
100.00
13
Maritime Ventures Private
Limited (b)
Infrastructure
India
Sterlite Ports Limited
-
100.00
14
Meenakshi Energy Limited(d)
Power Generation
India
Vedanta Limited
100.00
-
15
Paradip Multi Cargo Berth
Private Limited (b)
Infrastructure
India
Sesa Resources
Limited
-
100.00
16
Sesa Iron and Steel Limited (e) Manufacturing of Steel
India
Vedanta Limited
100.00
-
17
Sesa Mining Corporation
Limited (b)
Iron ore mining
India
Sesa Resources
Limited
100.00
100.00
18
Sesa Resources Limited
("SRL")
Iron ore mining
India
Vedanta Limited
100.00
100.00
19
Sterlite Ports Limited (b)
Infrastructure
India
Sesa Resources
Limited
-
100.00
20
Talwandi Sabo Power Limited
("TSPL")
Power Generation
India
Vedanta Limited
100.00
100.00
21
Vedanta Aluminium Metal
Limited (f)
Aluminium Business
India
Vedanta Limited
100.00
-
22
Vedanta Base Metals
Limited(g)
Metal business
India
Vedanta Limited
100.00
-
23
Vedanta Displays Limited (h)
LCD Panel
India
Vedanta Limited
100.00
-
24
Vedanta Iron and Steel
Limited (i)
Iron and Steel Business
India
Vedanta Limited
100.00
-
25
Vedanta Semiconductors
Private Limited (h)
Electronics
India
Vedanta Limited
100.00
-
26
Zinc India Foundation
CSR Activities
India
Hindustan Zinc
Limited
100.00
100.00
27
Vedanta Zinc Football &
Sports Foundation
Sports Foundation
India
Hindustan Zinc
Limited
100.00
100.00
28
Vizag General Cargo Berth
Private Limited
Infrastructure
India
Vedanta Limited
100.00
100.00
29
AvanStrate Inc. (''ASI'')
Manufacturing of LCD Glass
Substrate
Japan
Cairn India Holdings
Limited
51.63
51.63
30
Cairn India Holdings Limited
Investment company
Jersey
Vedanta Limited
100.00
100.00
31
AvanStrate Korea Inc
Manufacturing of LCD Glass
Substrate
Korea
ASI
100.00
100.00
32
Western Cluster Limited
Iron ore mining
Liberia
Bloom Fountain
Limited
100.00
100.00
33
Bloom Fountain Limited
Operating (Iron ore) and
Investment Company
Mauritius
Vedanta Limited
100.00
100.00
498
499
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
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
2024
As at
31 March
2023
34
THL Zinc Ltd
Investment Company
Mauritius
THL Zinc Ventures
Limited
100.00
100.00
35
THL Zinc Ventures Limited
Investment Company
Mauritius
Vedanta Limited
100.00
100.00
36
Amica Guesthouse
(Proprietary) Limited
Accommodation and catering
services
Namibia
Skorpion Zinc
(Proprietary) Limited
100.00
100.00
37
Namzinc (Proprietary) Limited Owns and operates a zinc
refinery
Namibia
Skorpion Zinc
(Proprietary) Limited
100.00
100.00
38
Skorpion Mining Company
(Proprietary) Limited ('NZ')
Exploration, development,
treatment, production and sale
of zinc ore
Namibia
Skorpion Zinc
(Proprietary) Limited
100.00
100.00
39
Skorpion Zinc (Proprietary)
Limited (''SZPL'')
Operating (zinc) and investing
company
Namibia
THL Zinc Namibia
Holdings (Proprietary)
Ltd
100.00
100.00
40
THL Zinc Namibia Holdings
(Proprietary) Limited (“VNHL”)
Mining and Exploration and
Investment company
Namibia
THL Zinc Ltd
100.00
100.00
41
Killoran Lisheen Mining
Limited
Development of a zinc/lead
mine
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
100.00
100.00
42
Lisheen Milling Limited
Manufacturing (j)
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
100.00
100.00
43
Lisheen Mine Partnership
Development and operation of
a zinc/lead mine
Republic of
Ireland
50% each held by
Killoran Lisheen
Mining Limited and
Vedanta Lisheen
Mining Limited
100.00
100.00
44
Vedanta Lisheen Mining
Limited
Zinc and lead mining
Republic of
Ireland
Vedanta Lisheen
Holdings Limited
100.00
100.00
45
Cairn Energy Hydrocarbons
Limited
Oil and gas exploration,
development and production
Scotland (k)
Cairn India Holdings
Limited
100.00
100.00
46
Black Mountain Mining
(Proprietary) Limited
Exploration, development,
production and sale of zinc,
lead, copper and associated
mineral concentrates
South Africa
THL Zinc Ltd
74.00
74.00
47
Vedanta Copper International
VCI Company Limited (l)
Manufacturing of copper rod
Saudi Arabia
Malco Energy Limited
100.00
-
48
Cairn Lanka Private Limited (m) Oil and gas exploration,
development and production
Sri Lanka
Cairn Energy
Hydrocarbons
Limited
-
100.00
49
AvanStrate Taiwan Inc
Manufacturing of LCD Glass
Substrate
Taiwan
ASI
100.00
100.00
50
Monte Cello BV (“MCBV”)
Holding company
The
Netherlands
Vedanta Limited
100.00
100.00
51
THL Zinc Holding BV
Investment company
The
Netherlands
Vedanta Limited
100.00
100.00
52
Vedanta Lisheen Holdings
Limited
Investment company
The
Netherlands
THL Zinc Holding BV
100.00
100.00
53
Fujairah Gold FZC
Manufacturing of Copper Rod
and Refining of Precious Metals
(Gold & Silver)
United Arab
Emirates
Malco Energy Limited
100.00
100.00
1
The Group also has interest in certain trusts which are neither significant nor material to the Group.
(a)
Copper Mines of Tasmania (CMT), wholly owned subsidiary of Vedanta Limited through intermediate holding company Monte Cello B.V.
(MCBV) was sold on 17 November 2023 (Refer note 4(D)).
(b)
The Mumbai NCLT and Chennai NCLT had passed orders dated 06 June 2022 and 22 March 2023 respectively to sanction 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'). MCA statutory filing has completed on 18 January 2024 which is the effective date of
merger (Appointed date 01 October 2020).
(c)
Hindmetal Exploration Services Private Limited incorporated on 26 February 2024 as a 100% subsidiary of Hindustan Zinc Limited, in
which no transactions have taken place during the year.
(d)
Meenakshi energy limited has been acquired on 27 December 2023 under the liquidation proceedings of the Insolvency and Bankruptcy
Code, 2016 as a 100% subsidiary of Vedanta Limited (Refer note 4(B)).
(e)
Sesa Iron and Steel Limited incorporated on 06 September 2023 as a 100% subsidiary of Vedanta Limited.
(f)
Vedanta Aluminium Metal Limited incorporated on 06 October 2023 as a 100% subsidiary of Vedanta Limited.
(g)
Vedanta Base Metals Limited incorporated on 09 October 2023 as a 100% subsidiary of Vedanta Limited.
(h)
Vedanta Displays Limited & Vedanta Semiconductors Private Limited has been acquired on 27 July 2023 from Twin star Technologies
Ltd via share purchase agreement.
(i)
Vedanta Iron and Steel Limited incorporated on 10 October 2023 as a 100% subsidiary of Vedanta Limited.
(j)
Activity of the company ceased in February 2016.
(k)
Principal place of business in India.
(l)
Vedanta Copper International VCI Company Limited incorporated on 14 November 2023 as a 100% subsidiary of Malco Energy Limited,
in which no transactions have taken place during the year.
(m) Cairn Lanka Private Limited is under process of liquidation.
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
(%) Participating Interest
As at
31 March 2024
As at
31 March 2023
Operating Blocks
Ravva block-Exploration, Development and Production
Krishna Godavari
22.50
22.50
CB-OS/2 – Exploration
Cambay Offshore
60.00
60.00
CB-OS/2 - Development & production
Cambay Offshore
40.00
40.00
RJ-ON-90/1 – Exploration
Rajasthan Onshore
100.00
100.00
RJ-ON-90/1 – Development & production
Rajasthan Onshore
70.00
70.00
KG-OSN-2009/3 – Exploration
Krishna Godavari Offshore
100.00
100.00
Non-Operating Blocks
KG-ONN-2003/1
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 2024 and 31 March 2023 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.
S.
No.
Associates and Jointly controlled entities
Country of incorporation
% Ownership interest
As at
31 March 2024
As at
31 March 2023
1
Gaurav Overseas Private Limited
India
50.00
50.00
2
Madanpur South Coal Company Limited
India
17.62
17.62
3
Goa Maritime Private Limited
India
50.00
50.00
4
Rosh Pinah Health Care (Proprietary) Limited
Namibia
69.00
69.00
5
Gergarub Exploration and Mining (Pty) Limited
Namibia
51.00
51.00
6
RoshSkor Township (Pty) Limited
Namibia
50.00
50.00
500
501
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
44 Oil & gas reserves and resources
The Group's gross reserve estimates are updated atleast annually based on the forecast of production profiles, determined on
an asset-by-asset basis, using appropriate petroleum engineering techniques. The estimates of reserves and resources have
been derived in accordance with the Society for Petroleum Engineers “Petroleum Resources Management System (2018)". The
changes to the reserves are generally on account of future development projects, application of technologies such as enhanced
oil recovery techniques and true up of the estimates. The management’s internal estimates of hydrocarbon reserves and
resources at the year end, are as follows:
Particulars
Country
Gross proved and probable
hydrocarbons initially in place
Gross proved and probable
reserves and resources
Net working interest proved and
probable reserves and resources
(mmboe)
(mmboe)
(mmboe)
As at
31 March 2024
As at
31 March 2023
As at
31 March 2024
As at
31 March 2023
As at
31 March 2024
As at
31 March 2023
Rajasthan Block
India
5,210
4,806
1,107
933
775
653
Ravva PKGM-1
India
704
704
14
18
3
4
CB-OS/2 Fields
India
298
298
31
22
12
9
KG-ONN-2003/1
India
260
260
31
32
15
16
KG-OSN-2009/3
India
-
32
-
4
-
4
DSF
India
218
30
112
86
112
86
OALP
India
361
531
81
60
81
60
Total
7,051
6,661
1,376
1,155
998
832
The Group’s net working interest proved and probable reserves is as follows:
Particulars
Proved and probable
reserves
Proved and probable reserves
(developed)
Oil
Gas
Oil
Gas
(mmstb)
(bscf)
(mmstb)
(bscf)
Reserves as of 01 April 2022*
210
189
135
121
Revisions/ Additions during the year
(15)
(3)
14
18
Production during the year
(28)
(34)
(28)
(34)
Reserves as of 31 March 2023**
167
152
121
105
Revisions/ Additions during the year
(3)
(2)
5
28
Production during the year
(24)
(34)
(24)
(34)
Reserves as of 31 March 2024***
140
116
102
99
* 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)
*** Includes probable oil reserves of 45.89 mmstb (of which 25.92 mmstb is developed) and probable gas reserves of 29.15 bscf (of which 27.34
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
45 Subsequent events
Subsequent to the year end, the Regional Controller of Mines, Bengaluru issued an order ("the Order") for temporary
suspension of mining operations for iron ore mines at Chitradurga, Karnataka, citing non-compliances with the approved
mining plan. The Company believes that there is no material impact expected from this Order on an annualised basis, since
the Company has sufficient mining and evacuation capacity. The Company is confident of demonstrating compliance with
the approved mining plan and obtaining revocation of the said Order, as envisaged in the Order.
There are no other material adjusting or non-adjusting subsequent events, except as already disclosed.
46 The Holding Company, subsidiaries, associates and joint ventures which are companies incorporated in India and whose
financial statements have been audited under the Act have complied with the requirements of audit trail except for
the following:
In 12 subsidiaries, Nil associates and Nil joint ventures, audit trail feature is not enabled in the SAP application for direct
changes to data in certain database tables which is restricted to certain IDs with system administrator user access in
order to optimise system performance. However, these system administrator rights have been disabled subsequent to the
year end. Further, no instance of audit trail feature being tampered with was noted in respect of software.
502
503
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
47 Financial information pursuant to Schedule III of the Companies Act, 2013
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
Parent
Vedanta Limited
213.32%
65,536
156.24%
6,623
(0.59%)
11
281.10%
6,634
Indian Subsidiaries
1
Hindustan Zinc Limited
49.58%
15,233
183.70%
7,787
0.16%
(3)
329.83%
7,784
2
Bharat Aluminium Company Limited
29.69%
9,121
32.67%
1,385
0.64%
(12)
58.18%
1,373
3
MALCO Energy Limited
(0.31%)
(94)
(2.76%)
(117)
(0.21%)
4
(4.79%)
(113)
4
Talwandi Sabo Power Limited
11.79%
3,623
14.20%
602
0.00%
-
25.51%
602
5
Sesa Resources Limited
1.48%
454
0.61%
26
0.05%
(1)
1.06%
25
6
Sesa Mining Corporation Limited (1)
0.37%
114
2.34%
99
0.05%
(1)
4.15%
98
7
Sterlite Ports Limited (1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
8
Vizag General Cargo Berth Private Limited
(0.03%)
(10)
(0.71%)
(30)
0.00%
-
(1.27%)
(30)
9
Paradip Multi Cargo Berth Private Limited (1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
10
Maritime Ventures Private Limited (1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
11
Goa Sea Port Private Limited (1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
12
Vedanta Limited ESOS Trust
0.17%
51
0.00%
-
0.00%
-
0.00%
-
13
ESL Steel Limited
14.97%
4,599
(22.84%)
(968)
0.05%
(1)
(41.06%)
(969)
14
Ferro Alloy Corporation Limited (FACOR)
3.52%
1,080
0.50%
21
0.05%
(1)
0.85%
20
15
Desai Cement Company Private Limited
(0.03%)
(8)
0.05%
2
0.00%
-
0.08%
2
16
Hindustan Zinc Alloys Private Limited
(0.03%)
(10)
(0.19%)
(8)
0.00%
-
(0.34%)
(8)
17
Vedanta Zinc Football & Sports Foundation
(0.00%)
(1)
0.00%
0
0.00%
-
0.00%
0
18
Hindustan Zinc Fertilizers Private Limited
0.00%
0
0.00%
-
0.00%
-
0.00%
0
19
Zinc India Foundation
(0.01%)
(2)
0.05%
2
0.00%
-
0.08%
2
20
Hindmetal Exploration Services Private
Limited (b)
0.00%
0
0.00%
0
0.00%
-
0.00%
0
21
Meenakshi Energy Limited (a)
(0.17%)
(53)
(1.25%)
(53)
0.00%
-
(2.25%)
(53)
22
Sesa Iron and Steel Limited (b)
0.00%
0
0.00%
0
0.00%
-
0.00%
0
23
Vedanta Aluminium Metal Limited (b)
0.00%
0
0.00%
0
0.00%
-
0.00%
0
24
Vedanta Base Metals Limited (b)
0.00%
0
0.00%
0
0.00%
-
0.00%
0
25
Vedanta Displays Limited (a)
0.01%
2
(0.57%)
(24)
0.00%
-
(1.02%)
(24)
26
Vedanta Iron and Steel Limited (b)
0.00%
0
0.00%
0
0.00%
-
0.00%
0
27
Vedanta Semiconductors Private Limited (a)
(0.01%)
(3)
(1.23%)
(52)
0.00%
-
(2.20%)
(52)
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
Foreign Subsidiaries
1
Copper Mines of Tasmania Pty Limited (c)
0.00%
-
13.07%
554
(0.37%)
7
23.77%
561
2
Thalanga copper mines Pty Limited
0.03%
9
(0.90%)
(38)
0.00%
-
(1.61%)
(38)
3
Monte Cello BV
0.18%
56
(3.89%)
(165)
0.00%
-
(6.99%)
(165)
4
Bloom Fountain Limited
(34.59%)
(10,628)
(6.30%)
(267)
0.00%
-
(11.31%)
(267)
5
Western Cluster Limited
(1.03%)
(315)
0.12%
5
0.00%
-
0.21%
5
6
Fujairah Gold FZC
(2.59%)
(797)
(1.77%)
(75)
0.00%
-
(3.18%)
(75)
7
THL Zinc Ventures Ltd
(2.76%)
(849)
(21.63%)
(917)
0.00%
-
(38.86%)
(917)
8
THL Zinc Ltd
(12.09%)
(3,713)
(7.50%)
(318)
0.00%
-
(13.47%)
(318)
9
THL Zinc Holding BV
(8.68%)
(2,666)
0.07%
3
0.00%
-
0.13%
3
10
THL Zinc Namibia Holdings (Proprietary)
Limited
2.92%
898
(3.99%)
(169)
0.00%
-
(7.16%)
(169)
11
Skorpion Zinc (Proprietary) Limited
0.00%
0
0.00%
0
0.00%
-
0.00%
0
12
Skorpion Mining Company (Proprietary)
Limited
(4.53%)
(1,392)
(0.35%)
(15)
0.00%
-
(0.64%)
(15)
13
Namzinc (Proprietary) Limited
1.33%
410
(3.75%)
(159)
0.00%
-
(6.74%)
(159)
14
Amica Guesthouse (Proprietary) Limited
0.01%
2
0.00%
0
0.00%
-
0.00%
0
15
Black Mountain Mining Proprietary Limited
11.85%
3,642
1.79%
76
(0.16%)
3
3.35%
79
16
Vedanta Lisheen Holdings Limited
0.09%
28
0.00%
0
0.00%
-
0.00%
0
17
Vedanta Lisheen Mining Limited
0.26%
80
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
18
Killoran Lisheen Mining Limited
0.08%
25
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
19
Lisheen Milling Limited
0.33%
101
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
20
Lisheen Mine Partnership
0.00%
-
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
21
Cairn India Holdings Limited
25.44%
7,817
40.58%
1,720
0.00%
-
72.88%
1,720
22
Cairn Energy Hydrocarbons Limited
12.90%
3,963
49.33%
2,091
0.00%
-
88.60%
2,091
23
Cairn Lanka (Private) Limited (d)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
24
AvanStrate Inc
0.01%
2
0.00%
0
0.00%
-
0.00%
0
25
AvanStrate Korea Inc
(0.01%)
(2)
0.00%
0
0.00%
-
0.00%
0
26
AvanStrate Taiwan Inc
(0.01%)
(2)
0.00%
0
0.00%
-
0.00%
0
27
Vedanta Copper International VCI Company
Limited (b)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
Non-controlling interests in all subsidiaries
(36.93%)
(11,347)
(77.85%)
(3,300)
(0.48%)
9
(139.45%)
(3,291)
504
505
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
Year ended
31 March 2024
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
Associates & Joint ventures (per Equity
method)
Indian
1
Gaurav Overseas Private Limited
0.00%
0
(0.05%)
(2)
0.00%
-
(0.08%)
(2)
2
Madanpur South Coal Company Limited
0.00%
1
0.00%
-
0.00%
-
0.00%
-
3
Goa Maritime Private Limited
0.00%
0
0.00%
0
0.00%
-
0.00%
0
Foreign
1
RoshSkor Township (Pty) Ltd
0.00%
1
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
2
Rosh Pinah Health Care (Proprietary)
Limited
0.01%
4
(0.02%)
(1)
0.00%
-
(0.04%)
(1)
3
Gergarub Exploration and Mining (Pty)
Limited
0.00%
0
0.00%
0
0.00%
-
0.00%
0
Consolidation Adjustments/ Eliminations (e)
(176.54%)
(54,238)
(237.65%)
(10,074)
100.80%
(1,894)
(507.12%)
(11,968)
Total
100.00%
30,722
100.00%
4,239
100.00%
(1,879)
100.00%
2,360
(a)Acquired during the year (b)Incorporated during the year (c)Sold during the year (d)Under liquidation duing the year.
(e)Consolidation adjustments/eliminations include intercompany eliminations, consolidation adjustments and GAAP differences.
1. The Mumbai NCLT and Chennai NCLT had passed orders dated 06 June 2022 and 22 March 2023 respectively to sanction 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'). MCA statutory filing has completed on 18 January 2024 which is the effective date of merger.
Exchange Rates as at 31 March 2024: 1 AUD= C 54.3163, 1 USD = C 83.3416, 1 AED = C 22.6913, 1 NAD = C 4.4152, 1 ZAR = C 4.4152, 1 JPY = C 0.5507
Average Exchange Rates for the year ended 31 March 2024: 1 AUD= C 54.4681, 1 USD = C 82.7845, 1 AED = C 22.5356, 1 NAD = C 4.4194, 1 ZAR = C 4.4194, 1 JPY = C 0.5735
Financial information pursuant to Schedule III of the Companies Act, 2013
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
Parent
Vedanta Limited*
177.18%
69,848
201.05%
21,259
42.45%
419
187.51%
21,678
Indian Subsidiaries
1
Hindustan Zinc Limited
32.83%
12,942
99.48%
10,519
4.18%
41
91.34%
10,560
2
Bharat Aluminium Company Limited
19.65%
7,748
0.40%
42
3.32%
33
0.65%
75
3
MALCO Energy Limited
0.05%
20
(2.53%)
(267)
(0.43%)
(4)
(2.34%)
(271)
4
Talwandi Sabo Power Limited
7.66%
3,020
(0.66%)
(70)
0.00%
-
(0.61%)
(70)
5
Sesa Resources Limited
1.09%
428
3.56%
376
0.00%
-
3.25%
376
6
Sesa Mining Corporation Limited(1)
0.04%
16
0.96%
101
0.16%
2
0.89%
103
7
Sterlite Ports Limited(1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
8
Vizag General Cargo Berth Private Limited
0.05%
20
0.29%
31
0.00%
-
0.27%
31
9
Paradip Multi Cargo Berth Private Limited(1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
10
Maritime Ventures Private Limited(1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
11
Goa Sea Port Private Limited(1)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
12
Vedanta Limited ESOS Trust
0.13%
51
0.04%
4
0.00%
-
0.03%
4
13
ESL Steel Limited
14.12%
5,567
(5.28%)
(558)
(0.30%)
(3)
(4.85%)
(561)
14
Ferro Alloy Corporation Limited (FACOR)(2)
1.43%
565
2.47%
261
(0.10%)
(1)
2.25%
260
15
Facor Realty and Infrastructure Limited(a)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
16
FACOR Power Ltd(2)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
17
Desai Cement Company Private Limited
(0.03%)
(10)
(0.04%)
(4)
(0.10%)
(1)
(0.04%)
(5)
18
Hindustan Zinc Alloys Private Limited
0.00%
-
(0.01%)
(1)
0.00%
-
(0.01%)
(1)
19
Vedanta Zinc Football & Sports Foundation
0.00%
-
(0.01%)
(1)
0.00%
-
(0.01%)
(1)
20
Hindustan Zinc Fertilizers Private Limited(c)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
21
Zinc India Foundation(c)
(0.01%)
(3)
(0.03%)
(3)
0.00%
-
(0.03%)
(3)
Foreign Subsidiaries
1
Copper Mines of Tasmania Pty Limited
(1.63%)
(644)
(0.80%)
(85)
0.00%
-
(0.74%)
(85)
2
Thalanga copper mines Pty Limited
0.12%
48
(0.02%)
(2)
0.00%
-
(0.02%)
(2)
3
Monte Cello BV
0.55%
218
0.04%
4
0.00%
-
0.03%
4
4
Bloom Fountain Limited
(25.91%)
(10,216)
5.49%
580
0.00%
-
5.02%
580
506
507
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
5
Western Cluster Limited
(0.80%)
(315)
6.65%
703
0.00%
-
6.08%
703
6
Fujairah Gold FZC
(1.80%)
(711)
(0.51%)
(54)
0.10%
1
(0.46%)
(53)
7
THL Zinc Ventures Ltd
(10.33%)
(4,072)
(0.01%)
(1)
0.00%
-
(0.01%)
(1)
8
THL Zinc Ltd
(8.49%)
(3,346)
0.05%
5
0.00%
-
0.04%
5
9
THL Zinc Holding BV
(6.67%)
(2,631)
0.51%
54
0.00%
-
0.47%
54
10
THL Zinc Namibia Holdings (Proprietary)
Limited
2.81%
1,107
(0.63%)
(67)
0.00%
-
(0.58%)
(67)
11
Skorpion Zinc (Proprietary) Limited
0.02%
9
(0.20%)
(21)
0.00%
-
(0.18%)
(21)
12
Skorpion Mining Company (Proprietary)
Limited
(3.65%)
(1,440)
(0.20%)
(21)
0.00%
-
(0.18%)
(21)
13
Namzinc (Proprietary) Limited
1.51%
595
(0.43%)
(45)
0.00%
-
(0.39%)
(45)
14
Amica Guesthouse (Proprietary) Limited
0.01%
2
0.00%
-
0.00%
-
0.00%
-
15
Black Mountain Mining Proprietary Limited
9.45%
3,726
10.52%
1,112
1.61%
16
9.76%
1,128
16
Vedanta Lisheen Holdings Limited
0.52%
204
0.23%
24
0.00%
-
0.21%
24
17
Vedanta Lisheen Mining Limited
0.20%
79
0.07%
7
0.00%
-
0.06%
7
18
Killoran Lisheen Mining Limited
0.06%
25
0.09%
9
0.00%
-
0.08%
9
19
Lisheen Milling Limited
0.25%
100
0.09%
10
0.00%
-
0.09%
10
20
Lisheen Mine Partnership
0.38%
150
0.05%
5
0.00%
-
0.04%
5
21
Lakomasko BV(d)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
22
Cairn India Holdings Limited
21.38%
8,429
(0.49%)
(52)
0.00%
-
(0.45%)
(52)
23
Cairn Energy Hydrocarbons Limited
10.04%
3,957
9.82%
1,038
0.00%
-
8.98%
1,038
24
Cairn Lanka (Private) Limited
0.00%
-
0.11%
12
0.00%
-
0.10%
12
25
CIG Mauritius Holding Private Limited(e)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
26
CIG Mauritius Private Limited(e)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
27
Cairn Energy Gujarat Block 1 Limited(f)
0.00%
-
0.00%
-
0.00%
-
0.00%
-
28
AvanStrate Inc
(5.80%)
(2,287)
(2.99%)
(316)
0.00%
-
(2.73%)
(316)
29
AvanStrate Korea Inc
(5.44%)
(2,143)
(1.94%)
(205)
0.00%
-
(1.77%)
(205)
30
AvanStrate Taiwan Inc
6.34%
2,498
(0.84%)
(89)
0.00%
-
(0.77%)
(89)
Non-controlling interests in all subsidiaries
(25.38%)
(10,004)
(37.16%)
(3,929)
6.69%
66
(33.41%)
(3,863)
S.
No
Name of the entity
Net Assets
(Total assets less total
liabilities)
Share in profit and loss
Share in other
comprehensive income (OCI)
Share in total
comprehensive income (TCI)
As at
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
Year ended
31 March 2023
As % of
consolidated
net assets
Amount
(C in crore)
As % of
consolidated profit
Amount
(C in crore)
As % of
consolidated
OCI
Amount
(C in crore)
As % of
consolidated TCI
Amount
(C in crore)
Associates & Joint ventures (per Equity
method)
Indian
1
Gaurav Overseas Private Limited
0.00%
1
0.00%
-
(0.05%)
(1)
(0.01%)
(1)
2
Madanpur South Coal Company Limited
0.01%
5
0.03%
4
0.00%
-
0.03%
4
3
Goa Maritime Private Limited
0.00%
-
0.00%
-
0.00%
-
0.00%
-
Foreign
1
Rosh Pinah Health Care (Proprietary)
Limited
0.01%
4
(0.01%)
(1)
0.00%
-
(0.01%)
(1)
2
Gergarub Exploration and Mining (Pty)
Limited
0.00%
-
0.00%
-
0.00%
-
0.00%
-
3
RoshSkor Township (Pty) Ltd
(0.00%)
2
(0.01%)
(1)
0.00%
-
(0.01%)
(1)
Consolidation Adjustments/ Eliminations(g)*
(111.95%)
(44,139)
(187.19%)
(19,793)
42.47%
419
(167.58%)
(19,374)
Total
100.00%
39,423
100.00%
10,574
100.00%
987
100.00%
11,561
*Restated, refer note 4(A)
(a)Struck off during the year (b)Acquired during the year (c)Incorporated during the year (d)Liquidated during the year (e)Dissolved during the year (f)De-registered during the year.
(g)Consolidation adjustments/eliminations include intercompany eliminations, consolidation adjustments and GAAP differences.
1. 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 downsubsidiaries of
Sesa Resources Limited (SRL), with Sesa Mining Corporation Limited (SMCL). Statutory filing with MCA is in progress.
2. 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 the consolidated financial statements of the Group due to this amalgamation.
Exchange Rates as at 31 March 2023: 1 AUD= C 55.0383, 1 USD = C 82.1643, 1 AED = C 22.3668, 1 NAD = C 4.6176, 1 ZAR = C 4.6176, 1 JPY = C 0.617788
Average Exchange Rates for the year ended 31 March 2023: 1 AUD= C 54.9328, 1 USD = C 80.2724, 1 AED = C 21.8517, 1 NAD = C 4.5020, 1 ZAR = C 4.7239, 1 JPY = C 0.593777
508
509
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
NOTES
forming part of the consolidated financial statements as at and for the year ended 31 March 2024
48 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)
The Group has not been declared wilful defaulter by any bank or financial Institution or other lender.
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)
The Group has not traded or invested in Crypto currency or Virtual Currency during the financial year.
f)
The Group does not have any 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).
Form AOC-I
Salient features of Subsidiaries pursuant to first proviso to sub section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014
(C in crore)
SI.
No.
Name of the Subsidiary
Reporting
Period
Reporting
currency
Share
Capital
Reserves
& Surplus
Total
Assets
Total
Liabilities
Investments
(excluding
Investment in
Subsidiary)
Turnover
Profit/
(Loss)
Before
Taxation
Provision
for
Taxation/
(credit)
Profit/
(Loss)
After
Taxation
Proposed
Dividend -
Proposed
Final
Dividend
% of
shareholding
1
Bharat Aluminium Company
Limited
April to
March
INR - INDIAN
RUPEE
221
8,900
16,854
7,733
148
13,141
1,862
477
1,385
-
51
2
Copper Mines of Tasmania Pty
Limited (3)
April to
November
AUD - Australian
Dollar
-
-
-
-
-
-
-
-
-
-
-
3
Thalanga Copper Mines Pty
Limited
April to
March
AUD - Australian
Dollar
3
6
45
36
-
-
(38)
-
(38)
-
100
4
Monte Cello BV
April to
March
USD - United
States Dollar
0
56
305
249
-
-
(164)
1
(165)
-
100
5
Hindustan Zinc Limited
April to
March
INR - INDIAN
RUPEE
845
14,388
33,904
18,671
10,452
28,084
10,343
2,556
7,787
-
65
6
MALCO Energy Limited
April to
March
INR - INDIAN
RUPEE
5
(99)
802
896
37
616
(117)
-
(117)
-
100
7
Fujairah Gold FZC
April to
March
AED - Emirati
Dirham
7,622
(8,419)
8,444
9,241
-
4,903
(75)
-
(75)
-
100
8
Talwandi Sabo Power Limited
April to
March
INR - INDIAN
RUPEE
3,207
416
10,300
6,677
-
5,267
756
154
602
-
100
9
THL Zinc Ventures Ltd
April to
March
USD - United
States Dollar
74
(923)
7,289
8,138
-
-
(917)
-
(917)
-
100
10
THL Zinc Ltd
April to
March
USD - United
States Dollar
75
(3,788)
3,840
7,553
-
-
(318)
-
(318)
-
100
11
THL Zinc Holding BV
April to
March
USD - United
States Dollar
43
(2,709)
339
3,005
68
-
3
0
3
-
100
12
THL Zinc Namibia Holdings
(Proprietary) Ltd
April to
March
NAD - Namibian
Dollar
7
891
1,199
301
2
9
(169)
-
(169)
-
100
13
Skorpion Zinc (Proprietary)
Limited
April to
March
NAD - Namibian
Dollar
0
0
0
0
-
-
0
-
0
-
100
14
Skorpion Mining Company
(Proprietary) Limited
April to
March
NAD - Namibian
Dollar
0
(1,392)
1,417
2,809
-
0
(15)
-
(15)
-
100
15
Namzinc (Proprietary) Limited
April to
March
NAD - Namibian
Dollar
0
410
1,967
1,557
-
3
(159)
-
(159)
-
100
16
Amica Guesthouse
(Proprietary) Limited
April to
March
NAD - Namibian
Dollar
0
2
3
1
-
3
0
0
0
-
100
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
510
511
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
(C in crore)
SI.
No.
Name of the Subsidiary
Reporting
Period
Reporting
currency
Share
Capital
Reserves
& Surplus
Total
Assets
Total
Liabilities
Investments
(excluding
Investment in
Subsidiary)
Turnover
Profit/
(Loss)
Before
Taxation
Provision
for
Taxation/
(credit)
Profit/
(Loss)
After
Taxation
Proposed
Dividend -
Proposed
Final
Dividend
% of
shareholding
17
Black Mountain Mining
(Proprietary) Limited
April to
March
ZAR - South
African Rand
0
3,642
7,202
3,560
-
3,554
225
149
76
-
74
18
Vedanta Lisheen Holdings
Limited
April to
March
USD - United
States Dollar
0
28
29
1
-
-
0
0
0
-
100
19
Vedanta Lisheen Mining
Limited
April to
March
USD - United
States Dollar
0
80
80
0
-
-
0
0
0
-
100
20
Killoran Lisheen Mining
Limited
April to
March
USD - United
States Dollar
0
25
25
0
-
-
0
0
0
-
100
21
Lisheen Milling Limited
April to
March
USD - United
States Dollar
0
101
214
113
-
4
0
1
(1)
-
100
22
Lisheen Mine Partnership
April to
March
USD - United
States Dollar
-
-
63
63
-
-
(1)
-
(1)
-
100
23
Sterlite Ports Limited (5)
April to
March
INR - INDIAN
RUPEE
-
-
-
-
-
-
-
-
-
-
100
24
Vizag General Cargo Berth
Private Limited
April to
March
INR - INDIAN
RUPEE
48
(58)
522
532
-
165
(27)
3
(30)
-
100
25
Cairn India Holdings Limited
April to
March
USD - United
States Dollar
3,988
3,829
9,936
2,119
20
-
1,750
30
1,720
-
100
26
Cairn Energy Hydrocarbons
Limited
April to
March
USD - United
States Dollar
2,889
1,074
9,737
5,774
1,171
8,294
3,737
1,646
2,091
-
100
27
Cairn Lanka (Private) Limited
(4)
April to
March
USD - United
States Dollar
-
-
-
-
-
-
-
-
-
-
100
28
Paradip Multi Cargo Berth
Private Limited (5)
April to
March
INR - INDIAN
RUPEE
-
-
-
-
-
-
-
-
-
-
100
29
Bloom Fountain Limited
April to
March
USD - United
States Dollar
18,343
(28,971)
868
11,496
-
-
(267)
-
(267)
-
100
30
Western Cluster Limited
April to
March
USD - United
States Dollar
-
(315)
1,267
1,582
-
266
5
-
5
-
100
31
Sesa Resources Limited
April to
March
INR - INDIAN
RUPEE
1
453
2,088
1,634
0
23
26
-
26
-
100
32
Sesa Mining Corporation
Limited (5)
April to
March
INR - INDIAN
RUPEE
22
92
535
421
-
189
108
9
99
-
100
33
Maritime Ventures Private
Limited (5)
April to
March
INR - INDIAN
RUPEE
-
-
-
-
-
-
-
-
-
-
100
(C in crore)
SI.
No.
Name of the Subsidiary
Reporting
Period
Reporting
currency
Share
Capital
Reserves
& Surplus
Total
Assets
Total
Liabilities
Investments
(excluding
Investment in
Subsidiary)
Turnover
Profit/
(Loss)
Before
Taxation
Provision
for
Taxation/
(credit)
Profit/
(Loss)
After
Taxation
Proposed
Dividend -
Proposed
Final
Dividend
% of
shareholding
34
Goa Sea Port Private Limited
(5)
April to
March
INR - INDIAN
RUPEE
-
-
-
-
-
-
-
-
-
-
100
35
Vedanta Limited ESOS Trust
April to
March
INR - INDIAN
RUPEE
0
51
205
154
0
-
0
0
0
-
100
36
AvanStrate Inc
April to
March
JPY - Japanese
Yen
0
2
3
1
-
0
0
-
0
-
52
37
AvanStrate Korea Inc
April to
March
JPY - Japanese
Yen
1
(3)
0
2
-
0
0
-
0
-
52
38
AvanStrate Taiwan Inc
April to
March
JPY - Japanese
Yen
0
(2)
3
5
-
-
0
0
0
-
52
39
Ferro Alloy Corporation
Limited (FACOR)
April to
March
INR - INDIAN
RUPEE
34
1,046
1,531
451
13
816
29
8
21
-
100
40
ESL Steel Limited
April to
March
INR - INDIAN
RUPEE
1,849
2,750
10,808
6,209
20
8,300
(649)
319
(968)
-
95
41
Desai Cement Company
Private Limited
April to
March
INR - INDIAN
RUPEE
2
(10)
13
21
-
9
2
-
2
-
100
42
Hindustan Zinc Alloys Private
Limited
April to
March
INR - INDIAN
RUPEE
0
(10)
214
224
-
15
(10)
(2)
(8)
-
100
43
Vedanta Zinc Football &
Sports Foundation
April to
March
INR - INDIAN
RUPEE
0
(1)
0
1
-
8
0
-
0
-
100
44
Hindustan Zinc Fertilizers
Private Limited
April to
March
INR - INDIAN
RUPEE
0
(0)
336
336
-
-
0
-
0
-
100
45
Zinc India Foundation
April to
March
INR - INDIAN
RUPEE
0
(2)
0
2
-
15
2
-
2
-
100
46
Hindmetal Exploration
Services Private Limited (2)
February to
March
INR - INDIAN
RUPEE
0
(0)
336
336
-
-
0
-
0
-
100
47
Meenakshi Energy Limited (1)
December
to March
INR - INDIAN
RUPEE
1
(54)
1,136
1,189
-
-
(53)
-
(53)
-
100
48
Sesa Iron and Steel Limited (2)
September
to March
INR - INDIAN
RUPEE
0
(0)
0
0
-
-
0
-
0
-
100
49
Vedanta Aluminium Metal
Limited (2)
October to
March
INR - INDIAN
RUPEE
0
(0)
0
0
-
-
0
-
0
-
100
50
Vedanta Base Metals Limited
(2)
October to
March
INR - INDIAN
RUPEE
0
(0)
0
0
-
-
0
-
0
-
100
512
513
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
FINANCIAL STATEMENTS
Consolidated
Form AOC-I
Salient features of Associate companies and Joint Ventures pursuant to first proviso to sub section (3) of section 129 read with rule 5 of the Companies (Accounts)
Rules, 2014
S.No
Name of Associates/Joint Ventures
RoshSkor Township
(Pty) Ltd
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
1
Latest audited Balance sheet date
30 June 2023
31 March 2024
31 March 2024
31 March 2024
31 December 2022
30 December 2020
2
Shares of Associate/Joint Ventures held by the
Company at the year end
- Number
50
14,23,000
1,14,421
5,000
69
51
- Amount of investment (C in crore)
1.85
1.42
1.96
0.01
0.00
0.00
- % of holding
50.00%
50.00%
18.05%
50.00%
69.00%
51.00%
3
Description of how there is significant influence
By way of ownership
By way of ownership
N.A.
N.A.
Joint control of the
entity
Joint control of the
entity
4
Networth attributable to shareholding as per latest
audited Balance sheet (C in crore)
1.05
0.06
1.02
0.00
4.09
0.00
5
(Loss)/Profit for the year (C in crore)
(0.57)
(0.87)
0.01
(0.00)
(1.44)
-
For and on behalf of the Board of Directors
Navin Agarwal
Arun Misra
Ajay Goel
Prerna Halwasiya
Executive Vice-Chairman and Whole-Time Director
Executive Director (Whole-Time Director) Chief Financial Officer
Company Secretary and Compliance Officer
DIN 00006303
Place: Mumbai
DIN 01835605
Place: New Delhi
PAN AEAPG8383C
Place: New Delhi
ICSI Membership No.A20856
Place: New Delhi
Date: 25 April 2024
(C in crore)
SI.
No.
Name of the Subsidiary
Reporting
Period
Reporting
currency
Share
Capital
Reserves
& Surplus
Total
Assets
Total
Liabilities
Investments
(excluding
Investment in
Subsidiary)
Turnover
Profit/
(Loss)
Before
Taxation
Provision
for
Taxation/
(credit)
Profit/
(Loss)
After
Taxation
Proposed
Dividend -
Proposed
Final
Dividend
% of
shareholding
51
Vedanta Displays Limited (1)
July to
March
INR - INDIAN
RUPEE
26
(24)
7
5
-
-
(24)
-
(24)
-
100
52
Vedanta Iron and Steel
Limited(2)
October to
March
INR - INDIAN
RUPEE
0
(0)
0
0
-
-
0
-
0
-
100
53
Vedanta Semiconductors
Private Limited (1)
July to
March
INR - INDIAN
RUPEE
49
(52)
13
16
-
-
(52)
-
(52)
-
100
54
Vedanta Copper International
VCI Company Limited (2)
November
to March
SAR - SAUDI
RIYAL
0
-
0
-
-
-
-
-
-
-
100
a. Exchange Rates as at 31 March 2024: 1 AUD= C 54.3163, 1 USD = C 83.3416, 1 AED = C 22.6913, 1 NAD = C 4.4152, 1 ZAR = C 4.4152, 1 JPY = C 0.5507
b. Average Exchange Rates for the year ended 31 March 2024: 1 AUD= C 54.4681, 1 USD = C 82.7845, 1 AED = C 22.5356, 1 NAD = C4.4194, 1 ZAR = C 4.4194, 1 JPY = C 0.5735
1 Acquired during the year
2 Incorporated during the year
3 Sold during the year
4 Under liquidation during the year
5 The Mumbai NCLT and Chennai NCLT had passed orders dated 06 June 2022 and 22 March 2023 respectively to sanction 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'). MCA statutory filing has completed on 18 January 2024 which is the effective date of merger.
514
CORPORATE OVERVIEW
STATUTORY REPORTS
515
Consolidated
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
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
financial statements of Vedanta Limited (“the Company”),
which comprise the Balance sheet as at 31 March 2024, the
Statement of Profit and Loss, including the statement of
Other Comprehensive Income, the Cash Flow Statement and
the Statement of Changes in Equity for the year then ended,
and notes to the standalone Ind AS financial statements,
including a summary of material accounting policies and
other explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone Ind
AS financial statements give the information required by the
Companies Act, 2013, as amended (“the Act”) in the manner
so required and give a true and fair view in conformity with
the accounting principles generally accepted in India, of the
state of affairs of the Company as at 31 March 2024, its profit
including other comprehensive income its cash flows and the
changes in equity for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone Ind AS financial
statements in accordance with the Standards on Auditing
(SAs), as specified under section 143(10) of the Act.
Our responsibilities under those Standards are further
described in the ‘Auditor’s Responsibilities for the Audit of
the Standalone Ind AS Financial Statements’ section of our
report. We are independent of the Company in accordance
with the ‘Code of Ethics’ issued by the Institute of Chartered
Accountants of India together with the ethical requirements
that are relevant to our audit of the financial statements
under the provisions of the Act and the Rules thereunder,
and we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of Ethics.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the standalone Ind AS financial statements.
Emphasis of Matter
We draw attention to Note 3(d)(i) of the standalone Ind AS
financial statements, with respect to accounting for an acquisition
approved by the National Company Law Tribunal, Hyderabad
Bench, overriding the applicable Ind-AS requirements. Further as
stated in the aforesaid note, the comparative financial information
for the year ended 31 March 2023 has also been restated to give
effect to the terms of merger.
Our opinion is not modified in respect of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the
standalone Ind AS financial statements for the financial year
ended 31 March 2024. These matters were addressed in
the context of our audit of the standalone Ind AS financial
statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. For
each matter below, our description of how our audit addressed
the matter is provided in that context.
We have determined the matters described below to be the
key audit matters to be communicated in our report. We
have fulfilled the responsibilities described in the Auditor’s
responsibilities for the audit of the standalone Ind AS financial
statements section of our report, including in relation to these
matters. Accordingly, our audit included the performance of
procedures designed to respond to our assessment of the risks
of material misstatement of the standalone Ind AS financial
statements. The results of our audit procedures, including
the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying
standalone Ind AS financial statements.
Key audit matters
How our audit addressed the key audit matter
(a) Accounting and disclosure of related party transactions (as described in note 39 of the Standalone Ind AS financial statements)
The Company has undertaken transactions with related party,
Vedanta Resources Limited (‘VRL’), its intermediate holding
company and its affiliates including among others, payment of
brand and strategic management fee, agency commission and
guarantee commission.
Accounting and disclosure of such related party transactions
has been identified as a key audit matter due to a) Significance
of such related party transactions; b) Risk of such transactions
being executed without proper authorizations; and c) Risk of
material information relating to aforesaid transactions not
getting disclosed in the financial statements.
Our procedures included the following:
•
Obtained and read the Company’s policies, processes and procedures in
respect of identification of such related parties in accordance with relevant
laws and standards, obtaining approval, recording and disclosure of
related party transactions and identified key controls. For selected controls
we have performed tests of controls.
•
Tested such related party transactions and balances with the underlying
contracts, confirmation letters and other supporting documents provided
by the Company.
•
Examined the approvals of the board and/or audit committee of
these transactions.
•
Obtained and assessed the benchmarking report issued by the experts
engaged by the management.
•
Assessed the competence and objectivity of the external experts.
•
Held discussions and obtained representations from the management in
relation to such transactions.
•
Read the disclosures made in this regard in the financial statements and
assessed whether relevant and material information have been disclosed.
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)(E), 3(a)(F)( ii), 3(c)(A)(i), 3(c)(A)(ii), 3(c)(A)(iii), 3(c)(A)(iv), 5, 6A and 34of
the Standalone Ind AS financial statements)
As at 31 March 2024, the Company had significant amounts
of property, plant and equipment, capital work in progress and
exploration intangible assets under development which were
carried at historical cost less depreciation.
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) Zinc International Mines of Gamsberg, Skorpion and
Swatberg to evaluate Company’s liability w.r.t. loan (secured by
financial guarantee by Company) taken by Company’s wholly
owned subsidiary THL Zinc Ventures Limited (THLZVL) on basis
of recoverable value of such mines.
Recoverability of property plant and equipment, capital work in
progress and exploration intangible assets under development,
non-current investment and Recognition of Expected Credit
Loss on financial guarantee has been identified as a key audit
matter due to:
•
The significance of the carrying value of assets
being assessed.
•
The fact that the assessment of the recoverable amount of
the Company’s CGU involves significant judgements about
the future cash flow forecasts, scrap value / Depreciated
Replacement Cost, price, production forecasts and the
discount rate that is applied.
•
The withdrawal of Company’s licenses to operate the copper
plant and unfavorable order of the Honorable Supreme Court
of India, leading to an exceptional charge of ` 746 crore.
•
Receipt of final partial arbitration award on DGH demand
arbitration which allowed exploration cost recovery and
had an impact on IM tranche. Accordingly, impairment of
` 550 crore was reversed on PPE, and ` 1,082 crore on
investment in wholly owned subsidiary, Cairn India Holding
Limited (“CIHL”), on account of increase in valuation of CIHL
pursuant to award. However, the government has filed an
appeal with the High Court against the arbitration award.
•
The fact that in the previous year, Company’s subsidiary
WCL obtained the mining license and has started
the mining activity at Bomi mine in Liberia, leading to
reversal of impairment in the previous year. However, the
operations in the current year were not in line with the
projected performance.
•
The fact that financial guarantee given by Company
amounting to ` 8,168 crore (USD 980 mn) for loan taken
by THLZVL has to be recognized as liability in books if
THLZV’s assets (i.e. Zinc International Mines) do not exhibit
recoverable value equal to or higher than loan amount.
The key judgements and estimates are centered on the
assessment of Scrap / Depreciated Replacement Cost for the
Copper plant, cash flow forecasts, impact of litigation w.r.t.
partial arbitration award, discount rate assumptions, price,
production forecasts and related disclosures as given in note 5
(Property, plant and equipment), 6A (Non-current investments)
and 34 (Exceptional items) of the accompanying financial
statements.
Our audit procedures included the following:
•
Obtained and read the Company’s policies, processes and procedures in
respect of identification of impairment indicators, recording and disclosure
of impairment charge / (reversal) and identified key controls. For selected
controls we have 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) Western Cluster Limited
(WCL) in Liberia within the Iron Ore segment for evaluating recoverability
for the Investments made in WCL through the wholly owned subsidiary
Bloom Fountain Limited d) Zinc International Mines in Gamsberg, Skorpion
and Swatberg to evaluate Company’s liability w.r.t. loan (secured by
financial guarantee by Company) taken by Company’s wholly owned
subsidiary THL Zinc Ventures Limited on basis of recoverable value
of such mines, where impairment charge / (reversal) indicators were
identified, obtained and evaluated the valuation models used to determine
the recoverable amount by assessing the key assumptions used by
management, which included:
– Assessment of the implications of withdrawal of Company’s license
to operate the copper plant at Tuticorin. Assessed management’s
position after unfavorable order of the Hon’ble Supreme Court against
re-opening of plant and its consequential impairment on PPE, CWIP
and other assets.
– Evaluated the valuation methodology adopted by the management i.e.
determination of fair value loss less cost of disposal through various
scenarios 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 / geography of sales and assessed the
reasonableness of costs.
– Compared the production forecasts used in the impairment tests with
management’s approved reserves and resources estimates,
– Evaluated the grounds of appeal filed with High Court for partial
arbitration award received by Company.
– Tested the weighted average cost of capital used to discount the
impairment models.
– Tested the mathematical accuracy of the models.
– Compared assumptions used by management in respect of price
forecast and ore grade against the consensus report and reserve and
resource report.
– Assessed the production and profitability trend in the Zinc
International segment and compared the same with the projected
cash flows for reasonableness.
– Assessed reserves and resources estimation methods and policies
and read reports provided by management’s external reserves experts
for the oil and gas assets of the Company;
– Assessed the competence, capability and objectivity of experts
engaged by management; through understanding their relevant
professional qualifications 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.
516
CORPORATE OVERVIEW
STATUTORY REPORTS
517
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
Key audit matters
How our audit addressed the key audit matter
Recoverability of disputed trade receivables in Power segment (as described in note 3(c)(B)(ii) and 7 of the Standalone Ind AS financial
statements)
As of 31 March 2024 the value of disputed receivables in the
power segment aggregated to ` 673 crore.
Due to short supply or non-supply of power due to transmission
line constraints, order received from Orissa State Electricity
Regulatory Commission (OERC) and disagreements over the
quantification 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. The risk is specifically related to receivables
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.
•
Tested arithmetical accuracy of the models prepared by the management.
•
Obtained independent external lawyer confirmation from Legal Counsel of
the 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 (as described in note 3(c)(B)(i), 38D and 44 of the Standalone Ind AS financial
statements)
The Company is subject to a large number of tax and legal
disputes, including developments in DGH Arbitration matter,
vendor arbitrations, income tax disallowances and various
indirect tax disputes which have been disclosed / provided for in
the financial statements based on the facts and circumstances
of each case.
Taxation and litigation exposures have been identified as a key
audit matter due to the complexities involved in these matters,
timescales involved for resolution and the potential financial
impact of these on the financial statements. Further, significant
management judgement is involved in assessing the exposure
of each case and thus a higher risk involved on adequacy of
provision or disclosure of such cases.
Our audit procedures included the following:-
•
Obtained an understanding of the process of identification of claims,
litigations and its classification as probable, possible or remote and
identified key controls in the process. For selected controls we have
performed tests of controls.
•
Obtained the summary of Company’s legal and tax cases and assessed
management’s position through discussions with the Legal Counsel, Head
of Tax and operational management, on both the probability of success in
significant cases and the magnitude of any potential loss.
•
Obtained independent external lawyer confirmations from Legal Counsel
of the Company who is contesting the cases.
•
Examined external legal opinions (where considered necessary) and other
evidence to corroborate management’s assessment of the risk profile in
respect of legal claims.
•
Assessed the competence and objectivity of the Company's experts.
•
Engaged tax specialists to technically appraise the tax positions taken by
management with respect to income tax and indirect tax matters.
•
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.
•
Assessed the relevant disclosures made within the financial statements
to address 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.
Information Other than the Financial Statements
and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the
other information. The other information comprises the
information included in the Annual report, but does not
include the standalone Ind AS financial statements and our
auditor’s report thereon.
Our opinion on the standalone Ind AS financial statements
does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone Ind AS
financial statements, our responsibility is to read the other
information and, in doing so, consider whether such other
information is materially inconsistent with the financial
statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material
misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities of Management for the
Standalone Ind AS Financial Statements
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to the
preparation of these standalone Ind AS financial statements
that give a true and fair view of the financial position, financial
performance including other comprehensive income, cash
flows and changes in equity of the Company in accordance
with the accounting principles generally accepted in India,
including the Indian Accounting Standards (Ind AS) specified
under section 133 of the Act read with the Companies
(Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of
the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities;
selection and application of appropriate accounting policies;
making judgments and estimates that are reasonable and
prudent; and the design, implementation and maintenance
of adequate internal financial controls, that were operating
effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and
presentation of the standalone Ind AS financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the standalone Ind AS financial statements,
management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the
going concern basis of accounting unless management
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those Charged with Governance are also responsible for
overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the
Standalone Ind AS Financial Statements
Our objectives are to obtain reasonable assurance about
whether the standalone Ind AS financial statements as
a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit conducted
in accordance with SAs will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis
of these standalone Ind AS financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
1.
Identify and assess the risks of material misstatement
of the standalone Ind AS financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or
the override of internal control.
•
Obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section
143(3)(i) of the Act, we are also responsible for
expressing our opinion on whether the Company has
adequate internal financial controls with reference
to financial statements in place and the operating
effectiveness of such controls.
•
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made
by management.
•
Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company’s ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor’s
report to the related disclosures in the financial
statements or, if such disclosures are inadequate,
518
CORPORATE OVERVIEW
STATUTORY REPORTS
519
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
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.
2.
Evaluate the overall presentation, structure and
content of the standalone Ind AS financial statements,
including the disclosures, and whether the standalone
Ind AS financial statements represent the underlying
transactions and events in a manner that achieves
fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical
requirements regarding independence, and to communicate
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone Ind AS financial
statements for the financial year ended 31 March 2024
and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter
should not be communicated in our report because the
adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of
such communication.
Other Matter
We did not audit the financial statements and other financial
information, in respect of unincorporated joint operation,
whose financial statements include total assets of ` 200
crore as at 31 March 2024, total revenues of ` 111 crore, net
profit after tax of ` 28 crore and total comprehensive income
of ` 28 crore for the year ended 31 March 2024, and net cash
inflows of ` Nil for the year ended 31 March 2024. These
financial statements and other financial information of the
said unincorporated joint operation have not been audited by
other auditors, whose unaudited financial statements, other
unaudited financial information have been furnished to us
by the management. Our opinion on the standalone Ind AS
financial statements, in so far as it relates to the amounts
and disclosures included in respect of these unincorporated
joint operation 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 operation, is based solely on the
unaudited information furnished to us by the management.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory
Requirements
1.
As required by the Companies (Auditor’s Report) Order,
2020 (“the Order”), issued by the Central Government
of India in terms of sub-section (11) of section 143 of
the Act, we give in the “Annexure 1” a statement on the
matters specified in paragraphs 3 and 4 of the Order.
2.
As required by Section 143(3) of the Act, we report, to
the extent applicable, that:
(a) We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit;
(b) In our opinion, proper books of account as required
by law have been kept by the Company so far as
it appears from our examination of those books
except for the matters stated in the paragraph (vi)
below on reporting under Rule 11(g);
(c)
The Balance Sheet, the Statement of Profit
and Loss including the Statement of Other
Comprehensive Income, the Cash Flow Statement
and Statement of Changes in Equity dealt with
by this Report are in agreement with the books
of account;
(d) In our opinion, the aforesaid standalone Ind AS
financial statements comply with the Accounting
Standards specified under Section 133 of the
Act, read with Companies (Indian Accounting
Standards) Rules, 2015, as amended;
(e)
On the basis of the written representations received
from the directors as on 31 March 2024 taken
on record by the Board of Directors, none of the
directors is disqualified as on 31 March 2024 from
being appointed as a director in terms of Section
164 (2) of the Act;
(f)
With respect to the adequacy of the internal
financial controls with reference to these
standalone Ind AS financial statements and the
operating effectiveness of such controls, refer to
our separate Report in “Annexure 2” to this report;
(g) In our opinion, the managerial remuneration for
the year ended 31 March 2024 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;
(h) The observation relating to the maintenance of
accounts and other matters connected therewith
are as stated in the paragraph (b) above on
reporting under Section 143(3)(b) and paragraph
i(vi) below on reporting under Rule 11(g).
(i)
With respect to the other matters to be included in
the Auditor’s Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our
information and according to the explanations
given to us:
i.
The Company has disclosed the impact of
pending litigations on its financial position in
its standalone Ind AS financial statements –
Refer Note 38D and 44 to the standalone Ind
AS financial statements;
ii.
The Company did not have any long-term
contracts including derivative contracts
for which there were any material
foreseeable losses;
iii.
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 39H
to the standalone Ind AS financial
statements, 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, whether, directly or
indirectly lend or invest in other persons
or entities identified in any manner
whatsoever by or on behalf of the
Company (“Ultimate Beneficiaries”) 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 39H
to the standalone Ind AS financial
statements, no funds have been
received by the Company from any
person(s) or entity(ies), including 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
identified in any manner whatsoever
by or on behalf of the Funding Party
(“Ultimate Beneficiaries”) or provide any
guarantee, security or the like on behalf
of the Ultimate Beneficiaries; 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.
v.
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.
vi.
Based on our examination which included
test checks, the Company has used
accounting software for maintaining its
books of account which has a feature of
recording audit trail (edit log) facility and
the same has operated throughout the year
for all relevant transactions recorded in the
software except that, audit trail feature is
not enabled for direct changes to data in
certain database tables when using system
administrator access rights, as described
in note 41(d) to the financial statements.
Further, during the course of our audit we did
not come across any instance of audit trail
feature being tampered with in respect of
accounting software.
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
Date: 25 April 2024
UDIN: 24093649BKGPPX5245
520
CORPORATE OVERVIEW
STATUTORY REPORTS
521
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
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, Plant and Equipment have been physically verified by the management in accordance with a planned
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 ` 432 crore
due to suspension of operations since April 2018 (refer Note 3(c)(A)(ii)). No material discrepancies were noticed on
such verification.
(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 in `
crore
Held in the name of
Whether
promoter,
director or
their relative
or employee
Period held
since
Reason for not being held in name of
company
Land
53
Erstwhile Company Sterlite
Industries (India) Limited that
merged with the Company
No
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.
ROU Land
50
Erstwhile Company Sterlite
Industries (India) Limited that
merged with the Company
No
1993-2009
Land
20
Erstwhile Company Vedanta
Aluminium Limited that merged
with the Company
No
2008-2012
Land &
Building
1,798
Oil and Natural Gas Corporation
Limited & Cairn India Limited
(now a division of the company)
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,
which have been confirmed by the lenders/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 2024.
(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) The inventory has been physically verified by the management during the year except for inventories aggregating
` 217 crore lying at Tuticorin plant which is under suspension (refer note 3(c)(A)(ii)) and inventories lying with
third parties amounting to ` 1,144 crore. In our opinion, the frequency of verification by the management is
reasonable and the coverage and procedure for such verification is appropriate. Inventories lying with third
parties have been confirmed by them as at 31 March 2024 and no discrepancies were noticed in respect of such
confirmations. Discrepancies of 10% or more in aggregate for each class of inventory were not noticed in respect of
such verification.
(b) As disclosed in note 17B to the financial statements, the Company has been sanctioned working capital limits in
excess of ` five crore in aggregate from banks and financial institutions during the year on the basis of security of
current assets of the Company. Based on the records examined by us in the normal course of audit of the financial
statements, the quarterly returns/statements filed by the Company with such banks and financial institutions are in
agreement with the audited books of accounts of the Company.
(iii) (a) During the year, the Company has provided loans, given security and stood guarantee to companies as follows:
Particulars (` In crore)
Guarantees
Loans
Security
Aggregate amount granted/ provided during the year
-
Subsidiaries
12,440
1,890
3,864
-
Employees’ Trust
-
200
-
Balance outstanding as at balance sheet date (including opening balances)
-
Subsidiaries
17,747
1,742
3,864
-
Ultimate parent company
115
-
-
-
Employees’ Trust
-
154
-
The Company has not provided any advances in the nature of loans during the year.
(b) 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.
(c)
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) There are no amounts of loans and advances in the nature of loans granted to companies, firms, limited liability
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
Aggregate amount of loans
or advances in the nature of
loans granted during the year
(in INR crore)*
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
Malco Energy Limited (MEL)
784
448
57%
Sesa Mining Corporation
Limited (SMCL)
118
8
7%
ESL Steel Limited (ESL)
675
305
45%
Ferro Alloy Corporation Limited
(FACOR)
187
22
12%
* 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
specifying any terms or period of repayment to companies, firms, Limited Liability Partnerships or any other parties.
Accordingly, the requirement to report on clause 3(iii)(f) of the Order is not applicable to the Company.
522
CORPORATE OVERVIEW
STATUTORY REPORTS
523
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
(iv) 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.
(v)
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.
(vi) We have broadly reviewed the books of account
maintained by the Company pursuant to the rules
made by the Central Government for the maintenance
of cost records under section 148(1) of the Companies
Act, 2013, related to the manufacture of goods and
generation of electricity, and are of the opinion that
prima facie, the specified accounts and records have
been made and maintained. We have not, however,
made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including goods and
services tax, provident fund, employees’ state
insurance, income-tax, duty of custom, 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, undisputed dues in
respect of goods and services tax, provident fund,
employees’ state insurance, income-tax, duty of
custom, 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, except for undisputed dues
relating to income tax amounting to ` 254 crore
has remained unpaid for a period of more than
6 months as on the reporting date, as Company
intends to re-evaluate their position basis tax
advise at the time of filing of return of income.
(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.
(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
defaulter by any bank or financial institution or
government or any government authority.
(c)
Term loans were applied for the purpose for which
the loans were obtained.
(d) On an overall examination of the financial
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 ` 7,432 crore for long-term
purposes primarily representing acquisition of
property plant and equipment.
(e)
On an overall examination of the financial
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.
(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 been
filed by cost auditor and secretarial auditor 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.
(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 in
the notes to the financial statements, as required by 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
current financial year.
(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) On the basis of the financial ratios disclosed in note
42 to the financial statements, ageing and expected
dates of realization of financial assets and payment of
financial liabilities, other information accompanying
the financial statements, our knowledge of the Board
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
transferred to a fund specified in Schedule VII of
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) to the financial statements.
(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 the Act. This
matter has been disclosed in note 41 (a) to the
financial statements.
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
Date: 25 April 2024
UDIN: 24093649BKGPPX5245
(f)
The Company has raised loans during the year on the pledge of securities held in its subsidiaries, as per details below.
Further, the Company has not defaulted in repayment of such loans raised.
Nature of loan
taken
Name of
lender
Amount of loan
in ` crore
Name of the subsidiary,
Details of security pledged
Remarks
Rupee Term Loans Bank
2,600
Hindustan Zinc Limited
4.35% Shares have been pledged
Refer note 17(c)
Non-Convertible
debentures
Financial
Institution
5,900
Sesa Iron and Steel
Limited
100% shares pledged
Refer note 17(c)
524
CORPORATE OVERVIEW
STATUTORY REPORTS
525
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
APPENDIX – 1
S.
No.
Name of the Statute
Nature of dues
Amount in
` crore
Financial Year to which
the amount relates
Forum where the dispute is
pending
1
Central Excise Act,
1944
Cess Demand - Excess
quantity of Crude Oil
0.04
June 02 to Aug 03
Central Excise and Service Tax
Appellate Tribunal
2
Central Excise Act,
1944
Penalty for Non payment of
NCCD in time
0.40
Nov 07 to Jul 08
Additional Commissioner, GST &
Central Excise
3
Customs Act, 1962
Duty on re-import of
Components
0.43
2012-2014
CESTATE, Ahemdabad
4
Finance Act, 1994
Service tax no paid on Import
of services
23.24
2006-2015
Central Excise and Service Tax
Appellate Tribunal
5
Andhra Pradesh VAT
Act/Central Sales Tax,
1956
Excess value mentioned in C
form by buyer due to wrong
exchange rate considered,
accordingly officer assessed
excess value.
0.11
2012-2015
Dy. Commissioner Appeals/
Tribunal
6
Central Excise Act,
1944
Demand of Edu.Cess & Hr.
Sec. Cess on Oil Cess
49.45
Dec'13 to Feb'15
Central Excise and Service Tax
Appellate Tribunal/ Supreme court
7
Gujrat VAT Act/Central
Sales Tax, 1956
Demand of Vat
0.03
FY 15-16
THE JOINT COMMISSIONER OF
STATE TAX, APPEAL 7, SURAT
8
Central Sales Tax,
1956
Demand of CST
0.03
FY 2016-17
Assistant Commissioner
9
Central Sales Tax,
1956
Demand of CST
0.10
FY 2014-15
Assistant Commissioner
10
Central Sales Tax,
1956
Demand of CST
0.00
FY 2019-20
Assistant CTO
11
Rajasthan VAT Act
Demand of Vat
0.01
FY 2019-20
Assistant CTO
12
GST Act, 2017
GST demand post
conclusion of audit u/s 65 of
CGST Act
0.003
2017-18
Commissioner Appeals, Surat
13
Income Tax Act,1961
Additional Income Tax
Demand
30.35
1999-00, 2008-09,
2009-10
Not applicable as application filed
for rectification*
14
Income Tax Act,1961
Additional Income Tax
Demand
0.67
2008-09, 2009-10
Commissioner of Income Tax
(Appeals)
15
Income Tax Act,1961
Additional Income Tax
demand
569.68
2002-03, 2004-05,
2005-06, 2006-07,
2007-08, 2008-09,
2014-15
Income Tax Appellate Tribunal**
16
Income Tax Act,1961
Additional Income Tax
Demand
778.77
2011-12,2012-13,
2013-14
High Court***
17
Value Added Tax
VAT
300.82
2012-13 , 2013-14 &
2014-15, 2015-16,
2016-17
Odisha, High Court
18
5.57
2014-15
Orissa High Court
19
0.33
2012-13
Odisha, High Court
20
0.34
October 2015 to June 2017 Deputy Commissioner, CT & GST
circle, Jharsuguda
21
Finance Act, 1994
Service Tax
104.92
2010-2015
CESTAT, Kolkata
22
1.73
2012-13 to 2015-16
CESTAT, Kolkata
23
7.10
2015-16
CESTAT, Kolkata
24
5.44
2016-17 and 2017-18
(Till June 30, 2017)
CESTAT, Kolkata
25
3.42
Apr’11 to Sep’11 & Oct’11
to Mar’12
CESTAT, Kolkata
26
2.26
Sep. 2009 to March 2014
CESTAT, Kolkata
27
0.64
2013-14
Commissioner Appeals
28
0.25
Oct’15 to Nov’16
Commissioner (A), Bhubneshwar
S.
No.
Name of the Statute
Nature of dues
Amount in
` crore
Financial Year to which
the amount relates
Forum where the dispute is
pending
29
0.50
April'16 to June'17
CESTAT, Kolkata
30
6.25
Oct 2016 to Mar 2017,
2017-18 (upto June 2017).
CESTAT, Kolkata
31
Central Excise Act,
1944
Excise Duty
26.60
Sept, 2004 to February,
2010
CESTAT, Kolkata
32
3.10
March 2010 to Feb 2011
CESTAT, Kolkata
33
0.55
2009-10, 2010-11
CESTAT, Kolkata
34
0.57
Oct 13 to July 14
CESTAT, Kolkata
35
21.73
2017-18
Assistant Commissioner, GST &
Central Excise, Rayagada Division
36
48.90
2017-18 and 2018-19
CESTAT , Kolkata
37
Customs Act, 1962
Customs Duty
0.10
2012-13 to 2016-17
CESTAT, Hyderabad
38
5.86
2012-13
Commissioner, Appeals,
Adjudicating Authority,
Visakhapatnam
39
1.81
2012-13
Commissioner, Appeals,
Adjudicating Authority,
Visakhapatnam
40
1.50
2014-15
CESTAT, Hyderabad
41
2.74
2008-09
High Court, Hydrabad
42
0.31
2015-16 to 2018-19
CESTAT, Kolkata
43
0.58
2019-20
CESTAT, Kolkata
44
3.77
Commissioner, Customs
(Preventive), Bhubaneshwar
45
Central Sales Tax,
1956
Sales Tax
1.90
2004-16
Additional Commissioner, Sales
Tax, Cuttack.
46
5.36
Oct'15 to Jun'17
Deputy Commissioner, CT & GST
circle, Jharsuguda
47
0.45
2014-15
Commercial tax board, Rajasthan
48
GST Act, 2017
GST
-
Nov 2017 to March 2018
(Levy of GST in case of
Advance Licenses wherein
export precedes imports
and entire amount has
been paid under protest)
Orissa High Court
49
33.59
Jun-17
Office of Superintendent,
Jharsuguda
50
49.89
May 2018 & June 2018
Additional Commissioner, CGST,
Rourkela
51
4.16
August 2020 to November
2020
Additional Commissioner of Central
Tax, GST & Central Excise, Rourkela
Commissionerate, Rourkela
52
33.38
July 2017 - March 2019
Additional Commissioner of Central
Tax, GST & Central Excise, Rourkela
Commissionerate, Rourkela
53
20.33
July 2017 - March 2019
Additional Commissioner of Central
Tax, GST & Central Excise, Rourkela
Commissionerate, Rourkela
54
12.13
2017-18
The Commissioner, GST & Central
Excise,Rourkela
55
9.74
DGGSTI, Raipur
56
Entry Tax
Entry Tax
292.88
Apr'07 to June'17
High Court of Orissa
57
182.44
2007-08 to 2012-13
High Court of Orissa
58
0.93
18th Aug'13-Mar'31, 2015
Additional commi. of commercial
taxes, Sambalpur
59
7.02
Oct'15 to Jun'17
Deputy Commissioner, CT & GST
circle, Jharsuguda
60
Energy Cess
Energy Cess
38.28
2014-19
High Court of Orissa
526
CORPORATE OVERVIEW
STATUTORY REPORTS
527
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
S.
No.
Name of the Statute
Nature of dues
Amount in
` crore
Financial Year to which
the amount relates
Forum where the dispute is
pending
61
Income tax Act, 1961
Income tax
251.57
2008-09 to 2013-14
Commissioner of Income Tax
(Appeals)
62
Income tax Act, 1961
Income tax
882.80
2007-08 to 2011-12,
2019-20
High Court
63
Income tax Act, 1961
Income tax
136.12
2004-05 to 2009-10
Income Tax Appellate Tribunal
64
Income tax Act, 1961
Income tax
205.82
2007-08
Supreme Court
65
Finance Act, 1994
Service Tax
50.68
2004-05 to 2012-13
Central Excise Service Tax
Appellate Tribunal
66
Central Excise Act,
1944
Excise duty
1.39
1997-2010
Commissioner of Central Excise /
Jt.Commisioner
67
Central Excise Act,
1944
Excise duty
66.01
1997-98 to 2012-13
Custom Excise Service Tax
Appellate Tribunal
68
Central Excise Act,
1944
Excise duty
4.53
2000-2006
High Court
69
Value Added Tax
Act,2006
Value Added Tax
7.12
1998-99 to 2014-15
High Court
70
Central Sales Tax,
1956
Sales Tax
4.25
98-99(CST)
High Court
71
Value Added Tax
Act,2006
Value Added Tax
43.76
2007-08 to 2014-15
Commissioner
72
Central Sales Tax,
1956
Sales Tax
16.15
2007-08 to 2014-15
Tamil Nadu Sales tax Tribunal
73
Customs Act, 1962
Custom Duty
0.18
1996-97, 2005-10, 2015
Supreme Court
74
Customs Act, 1962
Custom Duty
47.34
2005-06 to 2006-07
High Court
75
Customs Act, 1962
Custom Duty
92.76
2004-05 to 2012-13
Custom Excise Service Tax
Appellate Tribunal
76
Customs Act, 1962
Custom Duty
26.25
2004-05 to 2009-10 and
2013-14 and 2019-20
Commissioner of Customs
77
GST Act, 2017
GST
2.14
2017-18 to 2021-22
Appelate authority
78
Income Tax Act, 1961
Income Tax
476.88
AY 2006-07, AY 2009-10 &
AY 2010-11 & AY 2011-12
Commissioner of Income Tax
(Appeals)
79
Custom Act, 1962
Customs duty on exports
89.40
FY 2015-16 to FY 2019-20 Assistant Commissioner,
Marmagoa
80
Custom Act, 1962
Customs duty on exports
20.46
FY 2010-11
CESTAT, Kolkata
81
Custom Act, 1962
Customs duty on exports
1.43
FY 2010-11
CESTAT, Mumbai
82
Custom Act, 1962
Customs duty on exports
21.40
FY 2017-18
Commissioner of Customs, Goa
83
Custom Act, 1962
Customs duty on exports
0.34
FY 2018
Commissioner of Customs, Goa
84
Central Excise Act,
1944
Excise duty
13.32
FY 2011-12 & FY 2014-15
Custom Excise and Service tax
Appellate Tribunal, Mumbai
85
Central Excise Act,
1944
Excise duty
6.95
FY 2009-13
Commissioner, Bhubaneswar
86
Finance Act, 1994
Service tax
27.84
FY 2015-2016 to
FY 2016-18
Assistant Commissioner (Central
Tax) Audit, Bengaluru
87
Finance Act, 1994
Service tax
5.52
FY 2009-10
CESTAT, Bengaluru
88
Finance Act, 1994
Service tax
23.51
FY 2016-17
High Court, Goa
89
Finance Act, 1994
Service tax
18.55
FY 2016-17
Directorate General of Goods &
Service Tax Intelligance, Goa Unit
90
Central Sales Tax,
1956
Sales tax
5.48
FY 2013-14,15-16,
16-17, 17-18
Additional Commissioner of
Commercial Tax, Goa
91
Central Sales Tax,
1956
Sales tax
6.40
FY 2014-15
Additional Commissioner of Sales
Tax (Appeal)
92
Central Sales Tax,
1956
Sales tax
0.45
FY 2009-10
Goa VAT Tribunal
93
Central Sales Tax,
1956
Sales tax
1.96
FY 2009-10
Karnataka High Court
S.
No.
Name of the Statute
Nature of dues
Amount in
` crore
Financial Year to which
the amount relates
Forum where the dispute is
pending
94
Central Sales Tax,
1956
Sales tax
1.39
FY 2008-12
VAT Tribunal, Odisha
95
Foreign Development
Tax & Foreign
Development Fund
Forest Development tax
471.67
FY 2008 to till date
Supreme Court
96
Goa Rural
Improvement &
Welfare Cess Act,
2000
Cess
148.54
FY 2010 to till date
Supreme Court & High court of
Bombay at Goa.
97
MMRDA
Royalty
110.16
FY 2013-14
Department of Mines & Geology
98
MMRDA
Forest lease rent
0.08
FY 2009
HC of Karnataka
99
Railways Act 1971 and
wagon investment
scheme
Stacking and Warfare charge
4.09
FY 2010
High Court Of Calcutta
100
GST Act, 2017
GST
3.80
FY 2018-19
HC of Karnataka
101
Custom Act, 1962
Customs duty on exports
100.37
FY 2022-23
Commissioner( Appeals) of
Customs, Guntur
102
Income Tax Act 1961
Income Tax
1,140.00
FY 2014-15
Income Tax Appellate Tribunal
528
CORPORATE OVERVIEW
STATUTORY REPORTS
529
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
ANNEXURE-2
to the Independent Auditor’s Report of even date on the Ind AS Standalone Financial Statements of Vedanta Limted
Report on the Internal Financial Controls under
Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls with reference
to the standalone financial statements of Vedanta Limited
(“the Company”) as of 31 March 2024 in conjunction with our
audit of the standalone Ind AS financial statements of the
Company for the year ended on that date.
Management’s Responsibility for Internal
Financial Controls
The Company’s Management is responsible for establishing
and maintaining internal financial controls based on the
internal control over financial reporting criteria established
by the Company considering the essential components
of internal control stated in the Committee of Sponsoring
Organisations of the Treadway Commission (2013
Framework) (“COSO 2013 Criteria”). These responsibilities
include the design, implementation and maintenance of
adequate internal financial controls that were operating
effectively for ensuring the orderly and efficient conduct of
its business, including adherence to the Company’s policies,
the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the
accounting records, and the timely preparation of reliable
financial information, as required under the Companies
Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company's
internal financial controls with reference to these standalone
financial statements based on our audit. We conducted
our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) and the Standards on Auditing as specified
under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls
and, both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about
whether adequate internal financial controls with reference
to these standalone financial statements was established
and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial controls
with reference to these standalone financial statements and
their operating effectiveness. Our audit of internal financial
controls with reference to standalone financial statements
included obtaining an understanding of internal financial
controls with reference to these standalone financial
statements, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed
risk. The procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the internal financial controls with reference to
these standalone financial statements.
Meaning of Internal Financial Controls With
Reference to these Financial Statements
A company's internal financial control with reference
to these standalone financial statements is a process
designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance
with generally accepted accounting principles. A
company's internal financial control with reference to these
standalone financial statements includes those policies and
procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with generally accepted
accounting principles, and that receipts and expenditures
of the company are being made only in accordance with
authorisations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or
disposition of the company's assets that could have a
material effect on the financial statements.
Inherent Limitations of Internal Financial
Controls With Reference to these Standalone
Financial Statements
Because of the inherent limitations of internal financial
controls with reference to these standalone financial
statements, including the possibility of collusion or improper
management override of controls, material misstatements
due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls
with reference to these standalone financial statements
to future periods are subject to the risk that the internal
financial controls with reference to these standalone financial
statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects,
adequate internal financial controls with reference to these
standalone financial statements and such internal financial
controls with reference to these standalone financial
statements were operating effectively as at 31 March 2024
based on the internal control over financial reporting criteria
established by the Company considering the essential
components of internal control stated in COSO 2013 criteria.
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
Date: 25 April 2024
UDIN: 24093649BKGPPX5245
530
CORPORATE OVERVIEW
STATUTORY REPORTS
531
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
BALANCE SHEET
As at 31 March 2024
(C in crore)
Particulars
Note
As at
31 March 2024
As at
31 March 2023*
ASSETS
Non-current assets
Property, Plant and Equipment
5
43,642
40,649
Capital work-in-progress
5
8,835
10,494
Intangible assets
5
1,176
834
Exploration intangible assets under development
5
2,298
2,094
Financial assets
Investments
6A
59,902
59,872
Trade receivables
7
673
847
Loans
8
517
126
Derivatives
22
3
-
Others
9
1,693
2,114
Deferred tax assets (net)
35
-
5,910
Income tax assets (net)
35
3,496
1,753
Other non-current assets
10
2,691
2,046
Total non-current assets
1,24,926
1,26,739
Current assets
Inventories
11
6,946
8,217
Financial assets
Investments
6B
256
4,973
Trade receivables
7
1,864
1,694
Cash and cash equivalents
12
1,488
5,147
Other bank balances
13
654
318
Loans
8
1,227
507
Derivatives
22
131
98
Others
9
9,656
7,240
Income tax assets (net)
-
190
Other current assets
10
3,365
4,717
Total current assets
25,587
33,101
Total Assets
1,50,513
1,59,840
EQUITY AND LIABILITIES
Equity
Equity share capital
14
372
372
Other equity
15
65,164
69,476
Total Equity
65,536
69,848
Liabilities
Non-current liabilities
Financial liabilities
Borrowings
17A
28,320
32,606
Lease liabilities
21
212
51
Derivatives
22
-
20
Provisions
24
1,313
1,373
Deferred tax liabilities (net)
35
1,889
-
Other non-current liabilities
23
3,129
2,364
Total non-current liabilities
34,863
36,414
Current liabilities
Financial liabilities
Borrowings
17B
13,912
9,417
Lease liabilities
21
131
46
Operational buyers' credit / suppliers' credit
19
12,072
10,485
Trade payables
18
(a) Total outstanding dues of micro and small enterprises
152
218
(b) Total outstanding dues of creditors other than micro and small enterprises
4,878
5,436
Derivatives
22
73
151
Other financial liabilities
20
11,211
18,425
Other current liabilities
23
6,942
9,225
Provisions
24
137
129
Income tax liabilities (net)
606
46
Total current liabilities
50,114
53,578
Total Equity and Liabilities
1,50,513
1,59,840
*Restated, refer note 3(d)(i)
STATEMENT OF PROFIT AND LOSS
For the year ended 31 March 2024
(C in Crore, except otherwise stated)
Particulars
Note
Year ended
31 March 2024
Year ended
31 March 2023*
Revenue from operations
28
69,663
67,193
Other operating income
29
1,094
887
Other income
30
5,551
21,262
Total Income
76,308
89,342
Expenses:
Cost of materials consumed
29,300
27,619
Purchases of stock-in-trade
791
173
Changes in inventories of finished goods, work-in-progress and stock-in-trade
31
308
581
Power and fuel charges
12,372
17,019
Employee benefits expense
26
1,080
926
Finance costs
32
5,679
4,384
Depreciation, depletion and amortisation expense
5
3,789
3,661
Other expenses
33
14,327
12,322
Total expenses
67,646
66,685
Profit before exceptional items and tax
8,662
22,657
Net exceptional gain/ (loss)
34
5,073
(3,780)
Profit before tax
13,735
18,877
Tax expense/(benefit):
35
Other than exceptional items
Net current tax expense
1,175
3,790
Net deferred tax benefit, including tax credits
(108)
(4,033)
Exceptional items
Net current tax benefit
(1,819)
(1,471)
Net deferred tax expense/ (benefit)
7,864
(668)
Net tax expense/ (benefit)
7,112
(2,382)
Net profit after tax (A)
6,623
21,259
Net profit after tax before exceptional items (net of tax)
7,595
22,900
Other comprehensive income
Items that will not be reclassified to profit or loss
Re-measurements loss of defined benefit plans
(14)
(15)
Tax benefit
7
6
Loss on FVOCI equity investment
(17)
(37)
(24)
(46)
Items that will be reclassified to profit or loss
Net (loss)/ gain on cash flow hedges recognised during the year
(32)
2,418
Tax benefit/ (expense)
8
(846)
Net loss on cash flow hedges recycled to statement of profit and loss
(51)
(2,554)
Tax benefit
13
893
Exchange differences on translation
90
518
Tax benefit
7
36
35
465
Total other comprehensive income for the year (B)
11
419
Total comprehensive income for the year (A+B)
6,634
21,678
Earnings per share (in C)
- Basic & Diluted
36
17.80
57.15
*Restated, refer note 3(d)(i)
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
532
CORPORATE OVERVIEW
STATUTORY REPORTS
533
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
13,735
18,877
Adjustments for:
Depreciation, depletion and amortisation
3,810
3,703
Impairment charge/(reversal) on property, plant and equipment/ Capital work-in-progress (CWIP)/
Other assets written off (net) (Refer note 34)
328
8,115
Reversal of impairment on investments (Refer note 34)
(2,146)
(4,694)
Net exceptional loss/ (gain) on sale of long term investments in subsidiary (Refer note 34(b))
33
(183)
Other exceptional items (Refer note 34)
(3,287)
-
Provision for doubtful advances/ expected credit loss/ bad debts written off
206
436
Liabilities written back
(71)
(62)
Exploration costs written off
786
315
Fair Value gain on financial assets held at fair value through profit or loss
(13)
(44)
Loss on sale/ discard of property, plant and equipment
52
21
Foreign exchange loss (net)
80
251
Unwinding of discount on decommissioning liability
51
30
Share based payment expense
41
48
Interest income
(414)
(348)
Dividend income
(4,966)
(20,711)
Interest expense
5,628
4,354
Deferred government grant
(84)
(81)
Changes in Working Capital
(Increase)/decrease in trade and other receivables
(809)
204
Decrease in inventories
1,167
377
(Decrease)/ increase in trade and other payable
(355)
4,911
Cash generated from operations
13,772
15,519
Income taxes paid (net)
(237)
(3,028)
Net cash generated from operating activities
13,535
12,491
CASH FLOWS FROM INVESTING ACTIVITES
Investment made in subsidiaries (Refer note 39)
(76)
-
Purchases of property, plant and equipment (including intangibles, CWIP, capital advances and capital
creditors)
(6,377)
(6,645)
Proceeds from sale of property, plant and equipment
74
41
Loans given to related parties (Refer note 39)
(2,090)
(543)
Loans repaid by related parties (Refer note 39)
778
475
Deposits made
(1,015)
(889)
Proceeds from redemption of deposits
558
1,439
Short term investments made
(16,164)
(50,153)
Proceeds from sale of short-term investments
17,702
48,995
Interest received
411
346
Dividends received
4,966
20,711
Payment made to site restoration fund
(110)
(60)
Purchase of long term investments (Refer note 39)
(101)
(70)
Proceeds from sale of long term investments
8
-
Redemption of OCRPS/ Buy back of shares by subsidiary
7,609
2,665
Net cash generated from investing activities
6,173
16,312
STATEMENT OF CASH FLOWS
For the year ended 31 March 2024
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of short-term borrowings (net)
(220)
(900)
Proceeds from current borrowings
2,947
9,583
Repayment of current borrowings
(4,238)
(12,247)
Proceeds from long-term borrowings
9,269
15,333
Repayment of long-term borrowings
(6,469)
(6,593)
Interest paid
(6,022)
(4,369)
Payment of dividends to equity holders of the Company, net of taxes
(18,572)
(29,959)
Payment of lease liabilities
(62)
(22)
Net cash used in financing activities
(23,367)
(29,174)
Net decrease in cash and cash equivalents
(3,659)
(371)
Cash and cash equivalents at the beginning of the year
5,147
5,518
Cash and cash equivalents at the end of the year (Refer note 12)
1,488
5,147
*Restated, refer note 3(d)(i)
Notes:
1. The figures in parentheses indicate outflow.
2. The above cash flow has been prepared under the "Indirect Method" as set out in Indian Accounting Standard (Ind AS) 7 -
Statement of Cash Flows
STATEMENT OF CASH FLOWS
For the year ended 31 March 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
534
CORPORATE OVERVIEW
STATUTORY REPORTS
535
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
A. Equity Share Capital
Equity shares of C 1 each issued, subscribed and fully paid up
Number of shares
(in crore)
Amount
(C in crore)
As at 31 March 2024, 31 March 2023 and 31 March 2022*
372
372
*There are no prior period errors for the years ended 31 March 2023 and 31 March 2022.
B. Other Equity
(C in crore)
Particulars
Reserves and surplus
Items of Other Comprehensive Income
Capital
reserve
Securities
premium
Retained
earnings
Other
reserves
(Refer below)
Equity
instruments
through OCI
Hedging
reserve
Foreign
currency
translation
reserve
Total other
equity
Balance as at 01 April 2022
26,027
19,009
14,140
15,852
108
114
2,027
77,277
Profit for the year**
-
-
21,259
-
-
-
-
21,259
Other comprehensive income
for the year, net of tax
-
-
(9)
-
(37)
(89)
554
419
Total comprehensive income
for the year
-
-
21,250
-
(37)
(89)
554
21,678
Recognition of share based
payment
-
-
-
85
-
-
-
85
Stock options cancelled during
the year
-
-
8
(15)
-
-
-
(7)
Exercise of stock options
-
-
(80)
(38)
-
-
-
(118)
Reserves arising on account of
ACPL Merger**
8,133
-
-
-
-
-
-
8,133
Transfer from Retained earnings
to Capital reserve on ACPL
merger**
(8,133)
-
8,133
-
-
-
-
-
Dividends (net of tax)
(Refer note 37)
-
-
(37,572)
-
-
-
-
(37,572)
Balance as at 31 March 2023**
26,027
19,009
5,879
15,884
71
25
2,581
69,476
Profit for the year
-
-
6,623
-
-
-
-
6,623
Other comprehensive income
for the year, net of tax
-
-
(7)
-
(17)
(62)
97
11
Total comprehensive income
for the year
-
-
6,616
-
(17)
(62)
97
6,634
Recognition of share based
payment
-
-
-
92
-
-
-
92
Exercise of stock options
-
-
(32)
(47)
-
-
-
(79)
Dividends (Refer note 37)
-
-
(10,959)
-
-
-
-
(10,959)
Balance as at 31 March 2024
26,027
19,009
1,504
15,929
54
(37)
2,678
65,164
**Restated, refer note 3(d)(i)
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2024
Other reserves comprise:
(C in crore)
Particulars
Capital
redemption
reserve
Preference
share redemption
reserve
Amalgamation
Reserve
General
reserve
Share Based
Payment
Reserve
Total
Balance as at 01 April 2022
38
3,087
3
12,587
137
15,852
Recognition of share based payment
-
-
-
-
85
85
Stock options cancelled during the year
-
-
-
-
(15)
(15)
Exercise of stock options
-
-
-
-
(38)
(38)
Balance as at 31 March 2023
38
3,087
3
12,587
169
15,884
Recognition of share based payment
-
-
-
-
92
92
Exercise of stock options
-
-
-
-
(47)
(47)
Balance as at 31 March 2024
38
3,087
3
12,587
214
15,929
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 March 2024
See accompanying notes to the financial statements
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
536
CORPORATE OVERVIEW
STATUTORY REPORTS
537
Standalone
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
1
Company Overview
Vedanta Limited (“the Company”) (CIN:
L13209MH1965PLC291394) is a diversified natural
resource company engaged in exploring, extracting and
processing minerals and oil and gas. The Company
engages in the exploration, production and sale of oil
and gas, aluminium, copper, iron ore and power.
The Company was incorporated on 08 September
1975 under the laws of the Republic of India. The
registered office of the Company is situated at 1st Floor,
‘C’ wing, Unit 103, Corporate Avenue, Atul Projects,
Chakala, Andheri (East), Mumbai-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 61.95%
(31 March 2023: 68.11%) of the Company's equity as at
31 March 2024.
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 previous 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. During the
current year, the Company has received environment
clearance from Ministry of Environment, Forest and
Climate Change ("MoEFCC") and Consent to Operate
("CTO") from Goa State Pollution Board followed by
commencement of operations in March 2024.
•
The Company’s copper business is principally one
of custom smelting and includes captive power
plants at Tuticorin in Southern India. The Company's
copper business in Tamil Nadu, India has received
an order from the Tamil Nadu Pollution Control
Board (“TNPCB”) on 09 April 2018, rejecting the
Company’s application for renewal of consent
to operate under the Air and Water Acts for the
400,000 tpa copper smelter plant in Tuticorin for
want of further clarification and consequently the
operations were suspended. The Company has
filed an appeal with TNPCB Appellate authority
against the said order. During the pendency of the
appeal, TNPCB through its order dated 23 May 2018
ordered for disconnection of electricity supply and
closure of copper smelter plant. Post such order,
the state government on 28 May 2018 ordered the
permanent closure of the plant. The Company has
filed a writ petition before 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 it dismissed all the Writ Petitions filed by 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"). During the year ended 31 March 2024, the
Hon'ble Supreme Court, after hearing the Parties to
the proceedings has dismissed the SLP filed by the
Company vide judgment dated 29 February 2024.
(Refer note 3(c)(A)(ii)).
Further, the Company’s copper business includes
refinery and rod plant Silvassa consisting of a
133,000 MT of blister/ secondary material processing
plant, a 216,000 tpa copper refinery plant and a
copper rod mill with an installed capacity of 258,000
tpa. The plant continues to operate as usual, catering
to the domestic market.
•
The Company’s aluminium business include a
refinery and captive power plant at Lanjigarh, a
smelter and captive power plants at Jharsuguda and
coal mines at Jamkhani, all 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
and a 1,200 MW (two units of 600 MW each) thermal
coal-based power plant in the State of Chhattisgarh
in Eastern India.
Besides the above, the Company has business
interest in zinc, lead, silver, iron ore, steel, ferro alloys,
semiconductor, display and other products and services
through its subsidiaries in India and overseas.
These are the Company’s separate financial statements.
2
Basis of preparation and basis of
measurement of financial statements
These financial statements have been prepared in
accordance with Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting
Standards) Rules, 2015, presentation requirement of
Division II of schedule III 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.
These financial statements have been prepared in
accordance with the accounting policies, set out below
and were consistently applied to all periods presented
unless otherwise stated.
The Company has identified 12 months as its operating
cycle for the classification of assets and liabilities into
current and non-current.
These financial statements are approved for issue by
the Board of Directors on 25 April 2024. The revision to
these financial 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.
All financial information presented in Indian Rupee has
been rounded off to the nearest crore except when
indicated otherwise. Amounts less than C 0.50 crore
have been presented as “0”.
The financial statements have been prepared on a going
concern basis using historical cost convention and on
an accrual method of accounting, except for certain
financial assets and liabilities which are measured at fair
value as explained in the accounting policies below.
The Company has availed long term debt (Refer Note
17A and 17B). In the unlikely event, VRL (together
with its subsidiaries) ceases to hold more than 50.1%
stake in the Company, C 40,423 crore of the Company’s
outstanding long-term debt would become repayable on
demand. Management basis assessment of free cash
flows, its ability to refinance existing debt and other
strategic initiatives, considers the same as remote.
3 a) Material 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 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,
as specified in the contract. Revenue in respect
of such contracts is recognised when control
passes to the customer and is measured at the
amount the entity expects to be entitled – being
the estimate of the price expected to be received at
the end of the measurement period. Post transfer
of control of goods, provisional pricing features are
accounted in accordance with Ind AS 109 ‘Financial
Instruments’ rather than Ind AS 115 Revenue from
contracts with customers and therefore the Ind AS
115 rules on variable consideration do not apply.
These ‘provisional pricing’ adjustments, i.e., the
consideration adjusted post transfer of control
are included in total revenue from operations
on the face of the statement of profit and loss
and disclosed by way of note to the financial
statements. Final settlement of the price is based
on the applicable price for a specified future period.
The Company’s provisionally priced sales are
marked to market using the relevant forward prices
for the future period specified in the contract and is
adjusted in revenue.
Revenue from oil, gas and condensate sales
represent the Company’s share in the revenue
from sale of such products, by the joint operations,
and is recognised as and when control in these
products gets transferred to the customers. In
computing its share of revenue, the Company
excludes government’s share of profit oil which
gets accounted for when the obligation in respect
of the same arises.
538
539
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Revenue from sale of power is recognised when
delivered and measured based on rates as per
bilateral contractual agreements with buyers and at
a rate arrived at based on the principles laid down
under the relevant Tariff Regulations as notified by
the regulatory bodies, as applicable.
If a customer pays consideration before the
Company transfers goods or services to the
customer, a contract liability is recognised when
the payment is received. The advance payments
received plus a specified rate of return/ discount, at
the prevailing market rates, is settled by supplying
respective goods over a period of up to twenty
four months under an agreed delivery schedule
as per the terms of the respective agreements. As
these are contracts that the Company expects,
and has the ability, to fulfil through delivery of a
non-financial item, these are presented as advance
from customers and are recognised as revenue
as and when control of respective commodities is
transferred to customers under the agreements.
The fixed rate of return/ discount is treated as
finance cost. The portion of the advance where
either the Company does not have a unilateral right
to defer settlement beyond 12 months or expects
settlement within 12 months from the balance
sheet date is classified as a current liability.
•
Interest income
Interest income from debt instruments is
recognised using the effective interest rate method.
•
Dividends
Dividend income is recognised in the statement
of profit and loss only when the right to receive
payment is established, provided it is probable that
the economic benefits associated with the dividend
will flow to the Company, and the amount of the
dividend can be measured reliably.
(B) Property, plant and equipment
i)
Mining properties and leases
When a decision is taken that a mining property
is viable for commercial production (i.e., when the
Company determines that the mining property will
provide sufficient and sustainable return relative
to the risks and the Company decided to proceed
with the mine development), all further pre-
production primary development expenditure other
than that on land, buildings, plant, equipment and
capital work in progress is 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.
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 provides a
benefit in terms of improved access to ore in future
periods and certain criteria are met. When the
benefit from the stripping costs are realised in the
current period, the stripping costs are accounted
for as the cost of inventory. If the costs of inventory
produced and the stripping activity asset are
not separately identifiable, a relevant production
measure is used to allocate the production
stripping costs between the inventory produced
and the stripping activity asset. The Company
uses the expected volume of waste compared with
the actual volume of waste extracted for a given
value of ore/mineral production for the purpose of
determining the cost of the stripping activity asset.
Deferred stripping costs are included in mining
properties within property, plant and equipment
and disclosed as a part of mining properties. After
initial recognition, the stripping activity asset is
depreciated on a unit of production method over
the expected useful life of the identified component
of the ore body.
In circumstances where a mining property is
abandoned, the cumulative capitalised costs
relating to the property are written off in the
period in which it occurs i.e. when the Company
determines that the mining property will not provide
sufficient and sustainable returns relative to the
risks and the Company decides not to proceed with
the mine development.
Commercial reserves are proved and probable
reserves as defined by the 'JORC' Code, 'MORC'
code or 'SAMREC' Code. Changes in the
commercial reserves affecting unit of production
calculations are dealt with prospectively over the
revised remaining reserves.
ii)
Oil and gas assets- (developing/producing
assets)
For oil and gas assets, a "successful efforts" based
accounting policy is followed. Costs incurred prior
to obtaining the legal rights to explore an area are
expensed immediately to the statement of profit
and loss.
All costs incurred after the technical feasibility and
commercial viability of producing hydrocarbons
has been demonstrated are capitalised within
property, plant and equipment - development/
producing assets on a field-by-field basis.
Subsequent expenditure is capitalised only where
it either enhances the economic benefits of the
development/producing asset or replaces part of
the existing development/producing asset. Any
remaining costs associated with the part replaced
are expensed.
Net proceeds from any disposal of development/
producing assets are credited against the
previously capitalised cost. A gain or loss on
disposal of a development/producing asset is
recognised in the statement of profit and loss to
the extent that the net proceeds exceed or are less
than the appropriate portion of the net capitalised
costs of the asset.
iii) Other property, plant and equipment
The initial cost of property, plant and equipment
comprises its purchase price, including import
duties and non-refundable purchase taxes, and any
directly attributable costs of bringing an asset to
working condition and location for its intended use.
It also includes the initial estimate of the costs of
dismantling and removing the item and restoring
the site on which it is located.
Subsequently, property plant and equipment is
measured at cost less accumulated depreciation
and accumulated impairment losses, if any.
If significant parts of an item of property, plant
and equipment have different useful lives, then
they are accounted for as separate items (major
components) of property, plant and equipment.
All other expenses on existing property, plant
and equipment, including day-to-day repair and
maintenance expenditure and cost of replacing
parts, are charged to the statement of profit and
loss for the period during which such expenses are
incurred.
An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset or disposal. Gains and
losses on disposal of an item of property, plant and
equipment is included in the statement of profit
and loss when the asset is derecognised. Major
inspection and overhaul expenditure is capitalised,
if the recognition criteria are met.
iv)
Assets under construction
Assets under construction are capitalised in
the assets under construction account. At the
point when an asset is capable of operating in
the manner intended by management, the cost
of construction is transferred to the appropriate
category of property, plant and equipment. Costs
associated with the commissioning of an asset
and any obligatory decommissioning costs are
capitalised until the period of commissioning
has been completed and the asset is ready for its
intended use.
Capital work in progress is carried at cost less
accumulated impairment losses, if any.
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.
•
Oil and gas producing facilities
All expenditures carried within each field are
amortised from the commencement of production
on a unit of production basis, which is the ratio
of oil and gas production in the period to the
estimated quantities of depletable reserves at the
end of the period plus the production in the period,
generally on a field-by-field basis or group of fields
which are reliant on common infrastructure.
Depletable reserves are proved reserves for
acquisition costs and proved and developed
reserves for successful exploratory wells,
development wells, processing facilities,
540
541
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
distribution assets, estimated future abandonment
cost and all other related costs. These assets are
depleted within each cost centre. Reserves for
this purpose are considered on working interest
basis which are reassessed atleast annually.
Impact of changes to reserves are accounted
for prospectively.
•
Other assets
Depreciation on other property, plant and
equipment is calculated using the straight-line
method (SLM) to allocate their cost, net of their
residual values, over their estimated useful lives
(determined by the management) as given below.
Management's assessment takes into account,
inter alia, the nature of the assets, the estimated
usage of the assets, the operating conditions
of the assets, past history of replacement and
maintenance support.
Estimated useful lives of assets are as follows:
Asset
Useful Life
(in years)
Buildings (Residential, factory etc.)
3-60
Plant and equipment
15-40
Railway siding
15
Office equipment
3-6
Furniture and fixture
8-10
Vehicles
8-10
Major inspection and overhaul costs are
depreciated over the estimated life of the economic
benefit to be derived from such costs. The carrying
amount of the remaining previous overhaul cost
is charged to the statement of profit and loss if
the next overhaul is undertaken earlier than the
previously estimated life of the economic benefit.
The Company reviews the residual value and useful
life of an asset at least at each financial year-end.
The Company considers climate-related matters,
including physical and transition risks in its
assessment of expected useful lives and estimated
residual values. 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.
Mining rights include the cost incurred for mines such
as stamp duty, registration fees and other such costs
together with cost incurred on development of mining
rights and other related cost of mines transferred from
“Exploration intangible assets under development”.
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 recognised in the statement of profit
and loss when the asset is derecognised.
The amortisation period and the amortisation method
are reviewed at least at each financial year end. If
the expected useful life of the asset is different from
previous estimates, the change is accounted for
prospectively as a change in accounting estimate.
(D) Exploration and evaluation intangible assets
Exploration and evaluation expenditure incurred prior to
obtaining the mining right or the legal right to explore
are expensed as incurred.
Exploration and evaluation expenditure incurred after
obtaining the mining right or the legal right to explore
are capitalised as exploration and evaluation assets
(intangible assets) and stated at cost less impairment,
if any. Exploration and evaluation intangible assets are
transferred to the appropriate category of property,
plant and equipment when the technical feasibility and
commercial viability has been determined. Exploration
intangible assets under development are assessed for
impairment and impairment loss, if any, is recognised
prior to reclassification.
Exploration expenditure includes all direct and allocated
indirect expenditure associated with finding specific
mineral resources which includes depreciation and
applicable operating costs of related support equipment
and facilities and other costs of exploration activities:
•
Acquisition costs - costs associated with acquisition
of licenses and rights to explore, including related
professional fees.
•
General exploration costs - costs of surveys and
studies, rights of access to properties to conduct
those studies (e.g., costs incurred for environment
clearance, defence clearance, etc.), and salaries and
other expenses of geologists, geophysical crews and
other personnel conducting those studies.
•
Costs of exploration drilling and equipping
exploration and appraisal wells.
Exploration expenditure incurred in the process of
determining oil and gas exploration targets is capitalised
within "Exploration and evaluation assets" (intangible
assets) and subsequently allocated to drilling activities.
Exploration drilling costs are initially capitalised on a
well-by-well basis until the success or otherwise of the
well has been established. The success or failure of
each exploration effort is judged on a well-by-well basis.
Drilling costs are written off on completion of a well
unless the results indicate that hydrocarbon reserves
exist and there is a reasonable prospect that these
reserves are commercial.
Following appraisal of successful exploration wells,
if commercial reserves are established and technical
feasibility for extraction demonstrated, then the related
capitalised exploration costs are transferred into
a single field cost centre within property, plant and
equipment - development/producing assets (oil and
gas properties) after testing for impairment. Where
results of exploration drilling indicate the presence
of hydrocarbons which are ultimately not considered
commercially viable, all related costs are written off to
the statement of profit and loss.
Expenditure incurred on the acquisition of a license
interest is initially capitalised on a license-by-license
basis. Costs are held, undepleted, within exploration
and evaluation assets until such time as the exploration
phase on the license area is complete or commercial
reserves have been discovered.
Net proceeds from any disposal of an exploration asset
are initially credited against the previously capitalised
costs. Any surplus/ deficit is recognised in the
statement of profit and loss.
(E) Impairment of non-financial assets
Impairment charges and reversals are assessed at the
level of cash-generating units.
The Company assesses at each reporting date, whether
there is an indication that an asset may be impaired. The
Company conducts an internal review of asset values
annually, which is used as a source of information to
assess for any indications of impairment or reversal of
previously recognised impairment losses. Internal and
external factors, such as worse economic performance
than expected, changes in expected future prices, costs
and other market factors are also monitored to assess
for indications of impairment or reversal of previously
recognised impairment losses.
If any such indication exists then an impairment review
is undertaken and the recoverable amount is calculated,
as the higher of fair value less costs of disposal and the
asset's value in use.
Fair value less costs of disposal is the price that would
be received to sell the asset in an orderly transaction
between market participants and does not reflect the
effects of factors that may be specific to the company
and not applicable to entities in general. Fair value for
mineral and oil and gas assets is generally determined
as the present value of the estimated future cash flows
expected to arise from the continued use of the asset,
including any expansion prospects, and its eventual
disposal, using assumptions that an independent
market participant may take into account. These cash
flows are discounted at an appropriate post tax discount
rate to arrive at the net present value.
Value in use is determined as the present value of the
estimated future cash flows expected to arise from
the continued use of the asset in its present form and
its eventual disposal. The cash flows are discounted
using a pre-tax discount rate that reflects current
market assessments of the time value of money and
the risks specific to the asset for which estimates of
future cash flows have not been adjusted. Value in use
is determined by applying assumptions specific to the
Company's continued use and cannot take into account
future development. These assumptions are different
to those used in calculating fair value and consequently
the value in use calculation is likely to give a different
result to a fair value calculation. The Company assesses
whether climate risks, including physical risks and
transition risks could have a significant impact. If so,
these risks are included in the cash-flow forecasts in
assessing value in use amounts.
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
in the statement of profit and loss.
542
543
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Any reversal of the previously recognised impairment
loss is limited to the extent that the asset's carrying
amount does not exceed the carrying amount that
would have been determined if no impairment loss had
previously been recognised.
Exploration and evaluation assets:
In assessing whether there is any indication that an
exploration and evaluation asset may be impaired,
the Company considers, as a minimum, the
following indicators:
•
The period for which the Company has the right to
explore in the specific area has expired during the
period or will expire in the near future, and is not
expected to be renewed;
•
substantive expenditure on further exploration for
and evaluation of mineral resources in the specific
area is neither budgeted nor planned;
•
exploration for and evaluation of mineral resources
in the specific area have not led to the discovery of
commercially viable quantities of mineral resources
and the Company has decided to discontinue such
activities in the specific area;
•
sufficient data exist to indicate that, although a
development in the specific area is likely to proceed,
the carrying amount of the exploration and evaluation
asset is unlikely to be recovered in full from
successful development or by sale; and
•
reserve information prepared annually by
external experts.
When a potential impairment is identified, an
assessment is performed for each area of interest
in conjunction with the group of operating assets
(representing a cash-generating unit) to which the
exploration and evaluation assets is attributed.
Exploration areas in which reserves have been
discovered but require major capital expenditure before
production can begin, are continually evaluated to
ensure that commercial quantities of reserves exist or
to ensure that additional exploration work is underway
or planned. To the extent that capitalised expenditure is
no longer expected to be recovered, it is charged to the
statement of profit and loss.
(F) Financial instruments
(i)
Financial assets – recognition and subsequent
measurement
All financial assets are recognised initially at
fair value plus, in the case of financial assets
not recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset. Purchases or
sales of financial assets that require delivery
of assets within a time frame established by
regulation or convention in the market place
(regular way trades) are recognised on the trade
date, i.e., the date that the Company commits to
purchase or sell the asset.
Trade receivables that do not contain a significant
financing component are measured at transaction
price as per Ind AS 115.
For purposes of subsequent measurement,
financial assets are classified in three categories:
•
Financial assets at amortised cost
After initial measurement, such financial
assets are subsequently measured at
amortised cost using the Effective Interest
Rate (EIR) method.
•
Financial assets at fair value through other
comprehensive income (FVOCI)
Debt instruments included within the FVOCI
category are measured initially as well as
at each reporting date at fair value. Fair
value movements are recognised in other
comprehensive income (OCI). However,
interest income, impairment losses and
reversals and foreign exchange gain or loss
are recognised in the statement of profit
and loss. On derecognition of the asset,
cumulative gain or loss previously recognised
in other comprehensive income is reclassified
from the equity to statement of profit and
loss. Interest earned whilst holding fair value
through other comprehensive income debt
instrument is reported as interest income
using the EIR method.
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 no recycling of the amounts from OCI to
the statement of profit and loss, even on
sale of investment. However, the Company
may transfer the cumulative gain or loss
within equity.
•
Financial assets at fair value through profit
or loss (FVTPL)
Any debt instrument, which does not meet the
criteria for categorisation as at amortised cost
or as FVOCI, is classified as at FVTPL.
In addition, the Company may elect to
designate a debt instrument, which otherwise
meets amortised cost or FVOCI criteria, as
at FVTPL. However, such election is allowed
only if doing so reduces or eliminates a
measurement or recognition inconsistency
(referred to as ‘accounting mismatch’).
The Company has not designated any debt
instrument at FVTPL.
Any equity instrument in the scope of Ind
AS 109 are 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 applies are classified as at FVTPL.
Further, the provisionally priced trade
receivables are marked to market using the
relevant forward prices for the future period
specified in the contract and is adjusted
in revenue.
(ii) Impairment of financial assets
The Company follows 'simplified approach' for
recognition of impairment loss allowance on trade
receivables, contract assets and lease receivables.
The application of simplified approach does not
require the Company to track changes in credit risk.
Rather, it recognises impairment loss allowance
based on lifetime ECLs at each reporting date, right
from its initial recognition.
At each reporting date, for recognition of
impairment loss on other financial assets and
risk exposure, the Company determines whether
there has been a significant increase in the credit
risk since initial recognition. If credit risk has not
increased significantly, 12-month ECL is used to
provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is
used. If, in a subsequent period, credit quality of
the instrument improves such that there is no
longer a significant increase in credit risk since
initial recognition, then the Company reverts to
recognising impairment loss allowance based on
12-month ECL.
ECL impairment loss allowance (or reversal)
recognised during the year is recognised as
income/ expense in the statement of profit and
loss. The balance sheet presentation for various
financial instruments is 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 Company does not
reduce impairment allowance from the gross
carrying amount.
b)
Debt instruments measured at FVOCI: Since
financial assets are already reflected at fair
value, impairment allowance is not further
reduced from its value. Rather, ECL amount
is presented as 'accumulated impairment
amount' in the OCI.
For assessing increase in credit risk and
impairment loss, the Company combines financial
instruments on the basis of shared credit risk
characteristics with the objective of facilitating
an analysis that is designed to enable significant
increases in credit risk to be identified on a
timely basis.
The Company does not have any purchased or
originated credit-impaired (POCI) financial assets,
i.e., financial assets which are credit impaired on
purchase/ origination.
(iii) Financial liabilities – Recognition and Subsequent
measurement
Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, or as loans, borrowings and
payables, or as derivatives designated as hedging
instruments in an effective hedge, as appropriate.
All financial liabilities are recognised initially at
fair value and, in the case of financial liabilities
at amortised cost, net of directly attributable
transaction costs.
The Company’s financial liabilities include trade
and other payables, loans and borrowings,
financial guarantee contracts and derivative
financial instruments.
544
545
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
The measurement of financial liabilities depends on
their classification, as described below:
•
Financial liabilities at fair value through profit or
loss (FTVPL)
Financial liabilities at fair value through profit or
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing
in the near term. This category also includes
derivative financial instruments entered into by
the Company that are not designated as hedging
instruments in hedge relationships as defined by
Ind AS 109. Separated embedded derivatives are
also classified as held for trading unless they are
designated as effective hedging instruments.
Gains or losses on liabilities held for trading are
recognised in the statement of profit and loss.
Financial liabilities designated upon initial
recognition at fair value through profit or loss are
designated as such at the initial date of recognition,
and only if the criteria in Ind AS 109 are satisfied.
For liabilities designated as FVTPL, fair value gains/
losses attributable to changes in own credit risk
are recognised in OCI. These gains/losses are not
subsequently transferred to statement of profit
and loss. However, the Company may transfer
the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised
in the statement of profit and loss. The Company
has not designated any financial liability at fair
value through profit or loss.
Further, the provisionally priced trade payables are
marked to market using the relevant forward prices
for the future period specified in the 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 in
the statement of profit and loss when the liabilities
are derecognised as well as through the EIR
amortisation process.
(iv) Financial liabilities - Derecognition
A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms
of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. When a new financial
liability is recognised in place of an existing one,
the difference in the respective carrying amounts is
recognised in the statement of profit and loss.
(v) 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 Company
and final dividend is authorised when it is approved
by the shareholders. A corresponding amount is
recognised directly in equity.
(G) Derivative financial instruments and hedge
accounting
Initial recognition and subsequent measurement
In order to hedge its exposure to foreign exchange,
interest rate, and commodity price risks, the Company
enters into forward, option, swap contracts and
other derivative financial instruments. The Company
does not hold derivative financial instruments for
speculative purposes.
Such derivative financial instruments are initially
recognised at fair value on the date on which a
derivative contract is entered into and are subsequently
re-measured at fair value. Derivatives are carried as
financial assets when the fair value is positive and as
financial liabilities when the fair value is negative.
Any gains or losses arising from changes in the fair
value of derivatives are taken directly to the statement
of profit and loss, except for the effective portion of
cash flow hedges, which is recognised in OCI and
later reclassified to the statement of profit and loss
when the hedge item affects profit or loss or treated
as basis adjustment if a hedged forecast transaction
subsequently results in the recognition of a non-
financial asset or non-financial liability.
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
recognised in the statement of profit and loss
immediately, together with any changes in the
fair value of the hedged asset or liability that are
attributable to the hedged risk.
When an unrecognised firm commitment is
designated as a hedged item, the subsequent
cumulative change in the fair value of the firm
commitment attributable to the hedged risk
is recognised as an asset or liability with a
corresponding gain or loss recognised in the
statement of profit and loss. Hedge accounting
is discontinued when the Company revokes
the hedge relationship, the hedging instrument
or hedged item expires or is sold, terminated,
or exercised or no longer meets the criteria for
hedge accounting.
ii)
Cash flow hedges
The effective portion of the gain or loss on the
hedging instrument is recognised in OCI in the cash
flow hedge reserve, while any ineffective portion is
recognised immediately in the statement of profit
and loss.
Amounts recognised in OCI are transferred to the
statement of profit and loss when the hedged
transaction affects profit or loss, such as when the
hedged financial income or financial expense is
recognised or when a forecast sale occurs. When
the hedged item is the cost of a non-financial asset
or non-financial liability, the amounts recognised in
OCI are transferred to the initial carrying amount of
the non-financial asset or liability.
If the hedging instrument expires or is sold,
terminated or exercised without replacement or
rollover (as part of the hedging strategy), or if
its designation as a hedge is revoked, or when
the hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss previously
recognised in OCI remains separately in equity
until the forecast transaction occurs or the foreign
currency firm commitment is met.
(H) Leases
The Company assesses at contract inception, all
arrangements to determine whether they are, or contain,
a lease. That is, if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for consideration.
The Company as a lessee 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. The lease payments
include fixed payments (and, in some instances,
in-substance fixed payments) less any lease
incentives receivable, variable lease payments
that depend on an index or a rate, and amounts
expected to be paid under residual value
guarantees. The lease payments also include the
exercise price of a purchase option reasonably
certain to be exercised by the Company and
payments of penalties for terminating the lease, if
the lease term reflects the Company exercising the
option to terminate. Variable lease payments that
do not depend on an index or a rate are recognised
as expenses (unless they are incurred to produce
inventories) in the period in which the event or
condition that triggers the payment occurs.
546
547
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
In calculating the present value of lease payments,
the Company uses its incremental borrowing rate
at the lease commencement date because the
interest rate implicit in the lease is generally not
readily determinable. After the commencement
date, the amount of lease liabilities is increased
to reflect the accretion of interest and reduced for
the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there
is a modification, a change in the lease term,
a change in the lease payments (e.g., changes
to future payments resulting from a change in
an index or rate used to determine such lease
payments) or a change in the assessment of an
option to purchase the underlying asset.
The Company’s lease liabilities are 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 to leases of office equipment that are
considered to be low value. Lease payments on
short-term leases and leases of low-value assets
are recognised as expense on a straight-line basis
over the lease term.
(I) Inventories
Inventories and work-in-progress are valued at the lower
of cost and net realisable value. Cost is determined on
the following basis:
•
Purchased copper concentrate is recorded at cost on
a first-in, first-out ("FIFO") basis; all other materials
including stores and spares are valued on 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
statement of profit and loss.
(J) 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.
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.
(K) Taxation
Tax expense represents the sum of current tax and
deferred tax.
Current tax is provided at amounts expected to be paid
(or recovered) using the tax rates and laws that have
been enacted or substantively enacted by the reporting
date and includes any adjustment to tax payable in
respect of previous years.
Subject to the exceptions below, deferred tax is provided,
using the balance sheet method, on all temporary
differences at the reporting date between the tax bases
of assets and liabilities and their carrying amounts for
financial reporting purposes and on carry forward of
unused tax credits and unused tax losses;
•
Deferred income tax is not recognised on
initial recognition of an asset or liability in a
transaction that:
(i)
is not a business combination;
(ii) at the time of the transaction, affects neither
the accounting profit nor taxable profit (tax
loss); and
(iii) at the time of the transaction, does not give
rise to equal taxable and deductible temporary
differences; and
•
Deferred tax assets are recognised only to the
extent that it is more likely than not that they will
be recovered.
The carrying amount of deferred tax assets is reviewed
at each reporting date and is adjusted to the extent
that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the asset to
be recovered.
Deferred tax assets and deferred tax liabilities are offset,
if a legally enforceable right exists to set off current
income tax assets against current income tax liabilities
and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Further, management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to
interpretation and considers whether it is probable that a
taxation authority will accept an uncertain tax treatment.
The Company shall reflect the effect of uncertainty for
each uncertain tax treatment by using either most likely
method or expected value method, depending on which
method predicts better resolution of the treatment.
(L) Retirement benefit schemes
The Company operates or participates in a number of
defined benefits and defined contribution schemes, the
assets of which (where funded) are held in separately
administered funds. For defined benefit schemes, the
cost of providing benefits under the plans is determined
by actuarial valuation each year separately for each plan
using the projected unit credit method by third party
qualified actuaries.
Remeasurement including, effects of asset ceiling and
return on plan assets (excluding amounts included in
interest on the net defined benefit liability) and actuarial
gains and losses arising in the year are recognised in full
in other comprehensive income and are not recycled to
the statement of profit and loss.
Net interest is calculated by applying a discount rate to
the net defined benefit liability or asset at the beginning
of the period. Defined benefit costs are split into current
service cost, past service cost, net interest expense
or income and remeasurement and gains and losses
on curtailments and settlements. Current service cost
and past service cost are recognised within employee
benefit expense. Net interest expense or income is
recognised within finance costs.
For defined contribution schemes, the amount charged
to the statement of profit and loss in respect of
pension costs and other post retirement benefits is the
contributions payable in the year, recognised as and
when the employee renders related services.
(M) Share-based payments
Certain employees (including executive directors) of
the Company receive part of their remuneration in the
form of share-based payment transactions, whereby
employees render services in exchange for shares or
rights over shares (‘equity-settled transactions’).
The cost of equity-settled transactions with employees
is measured at fair value of share awards at the date at
which they are granted. The fair value of share awards
is determined with the assistance of an external valuer
and the fair value at the grant date is expensed on a
proportionate basis over the vesting period based on the
Company’s estimate of shares that will eventually vest.
The estimate of the number of awards likely to vest is
reviewed at each balance sheet date up to the vesting
date at which point the estimate is adjusted to reflect
the current expectations.
The resultant increase in equity is recorded in share
based payment reserve.
In case of cash-settled transactions, a liability
is recognised for the fair value of cash-settled
transactions. The fair value is measured initially and at
each reporting date up to and including the settlement
date, with changes in fair value recognised in employee
benefits expense. The fair value is expensed over
the period until the vesting date with recognition of a
corresponding liability. The fair value is determined with
the assistance of an external valuer.
(N) Provisions, contingent liabilities and contingent
assets
Provisions represent liabilities for which the amount
or timing is uncertain. Provisions are recognised
when the Company has a present obligation (legal
or constructive), as a result of past events, and it
is probable that an outflow of resources, that can
be reliably estimated, will be required to settle such
an obligation.
If the effect of the time value of money is material,
provisions are determined by discounting the
expected future cash flows to net present value using
an appropriate pre-tax discount rate that reflects
current market assessments of the time value of
money and, where appropriate, the risks specific to
the liability. Unwinding of the discount is recognised
in the statement of profit and loss as a finance cost.
Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimate.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there
is a liability that cannot be recognised because it cannot
548
549
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
be measured reliably. The Company does not recognise
a contingent liability but discloses its existence in the
Balance Sheet.
Contingent assets are not recognised but disclosed in
the financial statements when an inflow of economic
benefit is probable.
The Company has significant capital commitments
in relation to various capital projects which are not
recognised in the balance sheet.
(O) Restoration, rehabilitation and environmental
costs
An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or ongoing
production of a mine or oil fields. Such costs,
discounted to net present value, are provided for and
a corresponding amount is capitalised at the start of
each project, as soon as the obligation to incur such
costs arises. These costs are charged to the statement
of profit and loss over the life of the operation through
the depreciation of the asset and the unwinding of
the discount on the provision. The cost estimates are
reviewed periodically and are adjusted to reflect known
developments which may have an impact on the cost
estimates or life of operations. The impact of climate-
related matters, such as changes in environmental
regulations and other relevant legislation, is considered
by the Company in estimating the restoration,
rehabilitation and environmental costs. The cost of the
related asset is adjusted for changes in the provision
due to factors such as updated cost estimates, changes
to lives of operations, new disturbance and revisions
to discount rates. The adjusted cost of the asset is
depreciated prospectively over the lives of the assets
to which they relate. The unwinding of the discount
is shown as finance cost in the statement of profit
and loss.
Costs for the restoration of subsequent site damage,
which is caused on an ongoing basis during production,
are provided for at their net present value and charged
to the statement of profit and loss as extraction
progresses. Where the costs of site restoration are
not anticipated to be material, they are expensed
as incurred.
(P) 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 (C)
with an exception of oil and gas business operations
which has a US dollar functional currency as that is the
currency of the primary economic environment in which
it operates. The financial statements are presented in
Indian rupee (C).
In the financial statements of the Company, transactions
in currencies other than the functional currency are
translated into the functional currency at the exchange
rates ruling at the date of the transaction. Monetary
assets and liabilities denominated in other currencies
are translated into the functional currency at exchange
rates prevailing on the reporting date. Non-monetary
assets and liabilities denominated in other currencies
and measured at historical cost or fair value are
translated at the exchange rates prevailing on the dates
on which such values were determined.
All exchange differences are included in the statement
of profit and loss except those where the monetary
item designated as an effective hedging instrument
of the currency risk of designated forecasted sales
or purchases, which are recognised in the other
comprehensive income.
The Statement of Profit and Loss of oil and gas business
is translated into Indian Rupees (C) at the average
rates of exchange during the year / exchange rates as
on the date of the transaction. The Balance Sheet is
translated at the exchange rate as at the reporting date.
Exchange difference arising on translation is recognised
in other comprehensive income and would be recycled
to the statement of profit and loss as and when these
operations are disposed off.
The Company had applied paragraph 46A of AS 11
under Previous GAAP. Ind AS 101 gives an option,
which has been exercised by the Company, whereby a
first time adopter can continue its Indian GAAP policy
for accounting for exchange differences arising from
translation of long-term foreign currency monetary
items recognised in the Indian GAAP financial
statements for the period ending immediately before the
beginning of the first Ind AS financial reporting period.
Hence, foreign exchange gain/loss on long-term foreign
currency monetary items recognised upto 31 March
2016 has been deferred/capitalised. Such exchange
differences arising on translation/settlement of long-
term foreign currency monetary items and pertaining to
the acquisition of a depreciable asset are amortised over
the remaining useful lives of the assets.
Exchange differences arising on translation/ settlement
of long-term foreign currency monetary items, acquired
post 01 April 2016, pertaining to the acquisition of a
depreciable asset are charged to the statement of profit
and loss.
(Q) Buyers' Credit/ Suppliers' Credit and vendor
financing
The Company enters into arrangements whereby banks
and financial institutions make direct payments to
suppliers for raw materials and project materials. The
banks and financial institutions are subsequently repaid
by the Company at a later date providing working capital
timing benefits. These are normally settled 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 to be financing in
nature, and these are presented within borrowings in the
balance sheet. Interest expense on these are recognised
in the finance cost. Payments made by banks and
financial institutions to the operating vendors are treated
as a non cash item and settlement of due to operational
buyer’s credit/ suppliers’ credit by the Company is
treated as an operating cash outflow reflecting the
substance of the payment.
(R) Borrowing costs
Borrowing cost includes interest expense as per
effective interest rate ("EIR") and exchange differences
arising from foreign currency borrowings to the extent
they are regarded as an adjustment to the interest cost.
Borrowing costs directly relating to the acquisition,
construction or production of a qualifying capital project
under construction are capitalised and added to the
project cost during construction until such time that the
assets are substantially ready for their intended use, i.e.,
when they are capable of commercial production.
Where funds are borrowed specifically to finance
a qualifying capital project, the amount capitalised
represents the actual borrowing costs incurred. Where
surplus funds are available out of money borrowed
specifically to finance a qualifying capital project, the
income generated from such short-term investments
is deducted from the total capitalised borrowing cost.
If any specific borrowing remains outstanding after the
related asset is ready for its intended use or sale, that
borrowing then becomes part of general borrowing.
Where the funds used to finance a project form part of
general borrowings, the amount capitalised is calculated
using a weighted average of rates applicable to relevant
general borrowings of the Company during the year.
All other borrowing costs are recognised in the
statement of profit and loss in the year in which they
are incurred.
Capitalisation of interest on borrowings related to
construction or development projects is ceased when
substantially all the activities that are necessary to make
the assets ready for their intended use are complete
or when delays occur outside of the normal course
of business.
(S) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank
and on hand and short-term money market deposits
which have a maturity of three months or less from
the date of acquisition, that are readily convertible to
known amounts of cash and which are subject to an
insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash
and cash equivalents consist of cash and short-term
deposits, as defined above.
(T) Equity investment in subsidiaries, associates and
joint ventures
Investments representing equity interest in subsidiaries,
associates and joint ventures are carried at cost less
impairment, if any.
Joint Arrangements
A Joint arrangement is an arrangement of which two
or more parties have joint control. Joint control is
considered when there is contractually agreed sharing
of control of an arrangement, which exists only when
decisions about the relevant activities require the
unanimous consent of the parties sharing control.
Investments in joint arrangements are classified as
either joint operations or joint venture. The classification
depends on the contractual rights and obligations of
each investor, rather than the legal structure of the joint
arrangement. A joint operation is a joint arrangement
whereby the parties that have joint control of the
arrangement have rights to the assets, and obligations
for the liabilities, relating to the arrangement. A joint
venture is a joint arrangement whereby the parties that
have joint control of the arrangement have rights to the
net assets of the arrangement.
550
551
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Joint Operations
The Company has joint operations within its Oil and gas
segment and participates in several unincorporated joint
operations which involve the joint control of assets used
in oil and gas exploration and producing activities. The
Company accounts for its share of assets and income
and expenditure of joint operations in which it holds
an interest. Liabilities in unincorporated joint ventures,
where the Company is the operator, is accounted for
at gross values (including share of other partners) with
a corresponding receivable from the venture partners.
These have been included in the financial statements
under the appropriate headings.
(U) Common Control transactions
The transactions between entities under common
control are specifically covered by Ind AS 103. Such
transactions are accounted for using the pooling-
of-interest method. The assets and liabilities of the
acquired entity are recognised at their carrying amounts
recorded in the parent entity’s consolidated financial
statements with the exception of certain income tax
and deferred tax assets. No adjustments are made
to reflect fair values, or recognise any new assets or
liabilities. The only adjustments that are made are to
harmonise accounting policies. The components of
equity of the acquired companies are added to the
same components within the Company's equity. The
difference, if any, between the amounts recorded as
share capital issued plus any additional consideration
in the form of cash or other assets and the amount of
share capital of the transferor is transferred to capital
reserve. The Company’s shares issued in consideration
for the acquired companies are recognised from the
moment the acquired companies are included in these
financial statements and the financial statements
of the commonly controlled entities 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.
(V) Exceptional items
Exceptional items are those items that management
considers, by virtue of their size or incidence (including
but not limited to impairment charges and acquisition
and restructuring related costs), should be disclosed
separately to ensure that the financial information
allows an understanding of the underlying performance
of the business in the year, so as to facilitate
comparison with prior periods. No tax impact other than
tax impact on exceptional items including change in
tax regime 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.
3(b) Application of new and amended standards
(A) The Company has adopted, with effect from 01
April 2023, the following new and revised standards
and interpretations. Their adoption has not had any
significant impact on the amounts reported in the
financial statements.
1.
Ind AS 1 Presentation of financial statements:
The amendment requires disclosure of
material accounting policies rather than
significant accounting policies;
2.
Ind AS 12 Income Taxes: The amendment
clarifies application of initial recognition
exemption to transactions such as leases and
decommissioning obligations;
3.
Ind AS 8 Accounting Policies, Change in
Accounting Estimates and Errors: The
amendment replaces definition of ‘change in
accounting estimates’ with the definition of
‘accounting estimates’
(B) Standards notified but not yet effective
No new standards have been notified during the
year ended 31 March 2024.
3(c) Significant accounting estimates and
judgements
The preparation of financial statements in conformity
with Ind AS requires management to make judgements,
estimates and assumptions that affect the application
of accounting policies and the reported amounts of
assets, liabilities, income, expenses and disclosures
of contingent assets and liabilities at the date of these
financial statements and the reported amounts of
revenues and expenses for the years presented. These
judgments and estimates are based on management’s
best knowledge of the relevant facts and circumstances,
having regard to previous experience, but actual results
may differ materially from the amounts included in the
financial statements.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised
and future periods affected.
The information about significant areas of estimation
uncertainty and critical judgements in applying
accounting policies that have the most significant effect
on the amounts recognised in the financial 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
be written off to the statement of profit and loss
as exploration costs unless commercial reserves
are established or the determination process is
not completed and there are no indications of
impairment. The outcome of ongoing exploration,
and therefore whether the carrying value of
exploration and evaluation assets will ultimately be
recovered, is inherently uncertain.
Details of carrying values are disclosed in note 5.
(ii) 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 filed an
appeal with 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 by the NGT. The TNPCB has
filed an appeal against the order of the NGT before
the Supreme Court of India.
In the meanwhile, the application for renewal of
Consent to Operate ("CTO") for existing copper
smelter was rejected by TNPCB in April 2018. The
Company has filed an appeal before the TNPCB
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 Factory License
and the Registration Certificate 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
authorisation to handle hazardous substances,
subject to appropriate conditions for protection of
environment in accordance with law.
The State of Tamil Nadu and TNPCB approached
Supreme Court in Civil Appeals on 02 January
2019 challenging the judgement of NGT dated
15 December 2018 and the previously passed
judgement of NGT dated 08 August 2013. The
Supreme Court vide its judgement dated 18
February 2019 set aside the judgements of NGT
dated 15 December 2018 and 08 August 2013
solely on the basis of maintainability and directed
the Company to file an appeal in High court.
The Company has filed a writ petition before 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 it dismissed
all the Writ Petitions filed by 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").
Though the Company has raised substantial
grounds of challenge before the Supreme Court
and considering the grounds raised and the fact
that the NGT has ruled in favour of the Company,
the Hon'ble Supreme Court, after hearing the
Parties to the proceedings has dismissed the SLP
filed by the Company vide judgment dated 29
February 2024. On 01 April 2024, the Company
preferred a review petition before the Hon’ble
Supreme Court
Expansion Project:
Separately, the Company has filed a fresh
application for renewal of the Environmental
Clearance for the proposed Copper Smelter Plant 2
552
553
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
("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 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 the existing Plant review
petition filed before the Supreme Court.
As per the Company's assessment, it is in
compliance with the applicable regulations.
Considering prolonged time of plant closure
and uncertainties around opening of plant due
to rejection of SLP by Hon’ble Supreme Court,
the Company has carried out an impairment
assessment, on Tuticorin plant assets having
carrying value of C 1,681 crore (including PPE, CWIP
and inventory) using Depreciated Replacement
Cost / Scrap Value method for PPE and CWIP, and
Net recoverable method for inventory. Accordingly,
impairment on assets of C 746 crore (including PPE
of C 553 crore, CWIP of C 130 crore and loss on
inventory of C 63 crore) has been recorded during
the year ended 31 March 2024.
Property, plant and equipment of C 432 crore (31
March 2023: C 1,033 crore) and inventories of C
217 crore (31 March 2023: C 269 crore), pertaining
to existing and expansion plant, could not be
physically verified, anytime during the year, as the
access to the plant is presently restricted. However,
any difference between book and physical
quantities is unlikely to be material.
(iii) Oil and Gas reserves
Significant technical and commercial judgements
are required to determine the Company’s
estimated oil and natural gas reserves. Reserves
considered for computing depletion are proved
reserves for acquisition costs and proved and
developed reserves for successful exploratory
wells, development wells, processing facilities,
distribution assets, estimated future abandonment
cost and all other related costs. Reserves for this
purpose are considered on working interest basis
which are reassessed 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).
(iv) Carrying value of developing/producing oil and
gas assets
Management performs impairment tests on
the Company’s developing/producing oil and
gas assets where indicators of impairment are
identified in accordance with Ind AS 36.
The impairment assessments are based on a range
of estimates and assumptions, including:
Estimates/
assumptions
Basis
Future
production
proved and probable reserves,
production facilities, resource estimates
and expansion projects
Commodity
prices
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 field
Discount rates
cost of capital risk-adjusted for the risk
specific to the asset/ 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 5 and 34 respectively.
(v) 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, relate to those areas
of the financial 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
been considered in the preparation of the financial
statements, pertain to (a) inclusion of capex in
cash flow projections, (b) recoverable amounts
of existing assets and (c) review of estimates of
useful lives of property, plant and equipment.
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,
fuel switch, electrification of vehicles and mining
fleet and energy efficiency opportunities. During
the current year, work has progressed towards
the construction of renewable power delivery
agreements in accordance with the Board approved
plan (Refer Note 38(A)(ii)). 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. Collectively these measures have led
to an increase of our water positivity to 0.7 (FY23:
0.63). These initiatives are aligned with the group's
ESG strategy and no material changes were
identified to the financial statements as a result
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 Company's climate change
strategy, changes in environmental laws and
regulations and global decarbonisation measures
may impact the Company's significant judgments
and key estimates and result in changes to
financial statements and carrying values of
certain assets and liabilities in future reporting
periods. However, as of the balance sheet date, the
Company 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 the
outcome cannot be reliably quantified or is uncertain,
the claims are disclosed as contingent liabilities unless
the likelihood of an adverse outcome is remote. Such
liabilities are disclosed in the notes but are not provided
for in the financial statements.
When considering the classification of legal or tax
cases as probable, possible or remote, there is
judgement involved. This pertains to the application
of the legislation, which in certain cases is based
upon management’s interpretation of country specific
applicable law, in particular India, and the likelihood of
settlement. Management uses in-house and external
legal professionals to make informed decision.
Although there can be no assurance regarding the final
outcome of the legal proceedings, the Company does
not expect them to have a materially adverse impact on
the Company’s financial position or profitability. These
are set out in Note 38.
For other significant litigations where the possibility of
an outflow of resources embodying economic benefits
is remote, refer note 44.
554
555
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(ii) Revenue recognition and receivable recovery in relation
to the power division:
In certain cases, the Company’s power customers
are disputing various contractual provisions of Power
Purchase Agreements ("PPA"). Significant judgement
is required in both assessing the tariff to be charged
under the PPA in accordance with Ind AS 115 and to
assess the recoverability of withheld revenue currently
accounted for as receivables.
In assessing this critical judgment, management
considered favourable external legal opinions that the
Company has obtained in relation to the claims. In
addition, the fact that the contracts are with government
owned companies implies that the credit risk is low
[refer note 7 (c)].
3(d) Acquisitions, Restructuring and Disposal of
Subsidiary
(i) 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 C 565
crore, subject to approval by the National Company
Law Tribunal ("NCLT"). ACPL is building a 1,200 MW
coal-based power plant located in Jhanjgir Champa
district, Chhattisgarh.
The Company filed a resolution application with the
NCLT in July 2022 and further amended the application
in November 2022 praying for merger of ACPL with the
Company. The Company also sought various reliefs
from certain legal and regulatory provisions as part of
these applications. Pending receipt of NCLT approval,
the Company had recorded the above transaction as an
advance in its financial statements for the year ended
31 March 2023.
The NCLT approved the Company's resolution
application with an appointed date of 21 July 2022
("appointed date"), in its July 2023 order ("NCLT Order").
In accordance with applicable Ind AS, the Company has
restated its financial statements as at and for the year
ended 31 March 2023 to record this merger.
The Scheme of merger as approved by the NCLT
interalia prescribes the following accounting treatment
in the standalone financial statements of the Company:
the difference between the fair value at the appointed
date and the carrying value of the assets recorded
pursuant to the amalgamation at their book value
arrived at without considering any impairment/ write-off,
would be written off by debit to the Statement of Profit
and Loss of the Company and credited to the carrying
value of the assets. This would be a permanent write-off
of the carrying value of the assets and not a provision
for diminution in the value of the assets. The charge
on account of write-off of the assets, as mentioned
above, as recorded by the Company will be transferred
from its Retained Earnings to its Capital Reserve and
accordingly, the Capital Reserve will stand diminished by
the said amount.
Pursuant to the NCLT Order, the Company has merged
ACPL by carrying forward the book values of ACPL's
assets of C 8,698 crore (as appearing in ACPL's financial
statements as at 31 March 2022, which were audited
by ACPL's auditors) at the appointed date without
considering any impairment, applying Appendix C of Ind
AS 103 - Business Combinations, instead of recognising
the assets at purchase consideration in accordance
with Ind AS 16. The difference between the values of
assets acquired and the consideration paid was credited
to Other Equity (Capital Reserve). The Company has
written off the consequent loss of C 8,133 crore in
the Statement of Profit and Loss for the year ended
31 March 2023, representing the difference between the
book value of assets and consideration paid. The assets
written off of C 8,133 crore, excluding tax consequences
thereof, has been transferred from ‘Retained Earnings’
to ‘Capital Reserve’, in accordance with the Scheme. The
above is in accordance with the NCLT Order, overriding
the applicable Ind AS requirements.
Consequent to the implementation of the merger, a
deferred tax credit of C 2,036 crore was recognised in
the Statement of Profit and Loss with a corresponding
increase in carrying value of deferred tax assets in the
comparative balance sheet as at 31 March 2023 due
to difference between carrying value of assets as per
books (book base) and tax base of the asset (original
cost of acquisition by Athena), and the carrying values
of deferred tax assets (MAT credit) was lower by C 1,421
crore with a corresponding reduction in income tax
liabilities by C 979 crore and an increase in income tax
assets by C 442 crore as at 31 March 2023, on account
of the lower MAT charge. These restated balances of
31 March 2023 have been carried to FY 2023-24.
As a result of the above, the profit before tax was lower
by C 8,133 crore and profit after tax was lower by C 6,097
crore for the year ended 31 March 2023. Consequently,
the earnings per share (EPS) was lower by C 16.39 per
share for the year ended 31 March 2023.
(ii) Meenakshi Energy Limited
Meenakshi Energy Limited (“Meenakshi”) is a 1,000
MW coal-based power plant located at Nellore, Andhra
Pradesh. NCLT vide its order dated 10 August 2023
has granted its approval for the Resolution Plan as
submitted by the Company for acquisition of Meenakshi
under Corporate Insolvency Resolution Process in
accordance with the provisions of Insolvency and
Bankruptcy Code (IBC), 2016 for a total consideration of
C 1,440 crore.
Pursuant to the approval of Resolution Plan, the
Company has made a payment of upfront consideration
of C 312 crore and infused C 1 crore through equity
for the implementation of approved Resolution Plan.
On 16 October 2023, zero coupon, secured, unlisted
non-convertible debentures ("NCDs") of aggregate face
value of C 1,128 crore have been issued by Meenakshi
to its financial creditors, redeemable in 5 equal annual
instalments starting from 16 October 2025. Consequent
to satisfaction of all conditions precedent of the
Resolution Plan, the Company has acquired control of
Meenakshi on 27 December 2023. The above acquisition
meets the criterion of asset acquisition under Ind AS
103 - Business Combinations.
(iii) Scheme of Arrangement for demerger
The Board of Directors, in its meeting held on
29 September 2023, has approved a Scheme of
Arrangement (“the Scheme”) for demerger of various
businesses of the Company. The Scheme entails
demerger of the Company’s Aluminium (represented by
the Aluminium segment), Merchant Power (represented
by the Power segment), Oil and Gas (represented by the
Oil and Gas segment), Base Metals (represented by the
Copper and Zinc International segment) and Iron Ore
(represented by Iron Ore segment and Steel business)
Undertakings into 6 separate companies with a mirrored
shareholding and consequent listings at BSE Limited
and National Stock Exchange of India Limited ("the
Stock Exchanges").
The Company has filed the Scheme with the Stock
Exchanges. Upon receipt of necessary approvals from
the Stock Exchanges, the Scheme will be filed with
the NCLT. Pending regulatory and other approvals,
no adjustments have been recorded in the financial
statements of the Company for the year ended
31 March 2024.
(iv) Disposal of subsidiary
During the year ended 31 March 2024, Monte Cello BV
("MCBV"), a wholly owned subsidiary of the Company,
sold 100% of its equity ownership in its wholly owned
subsidiary, Copper Mines of Tasmania ("CMT") which
was previously engaged in copper mining operations
in Australia. The Group has received upfront cash
consideration of C 84 crore (US$ 10 million) and de-
recognised net liabilities of C 94 crore (US$ 11 million)
pertaining to CMT, as reported in the consolidated
financial statements for the year ended 31 March 2024.
Further, as part of the transaction, the acquirer shall pay
the Group additional consideration in future upto US$
310 million by way of fee/ royalties, on achieving certain
pre-agreed milestones. Accordingly, based on these
expected future cash flows, the Company has reversed
previously recorded impairment of C 204 crore on its
investments in MCBV as an exceptional item, in these
financial statements.
556
557
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
4
Segment Information
A) Description of segment and principal activities
The Company is a diversified natural resource company engaged in exploring, extracting and processing minerals and oil
and gas. The Company produces oil and gas, aluminium, copper, iron ore and power. The Company has five reportable
segments: oil and gas, aluminium, copper, iron ore and power. The management of the Company is organised by its main
products: oil and gas, aluminium, copper, iron ore and power. Each of the reportable segments derives its revenues from
these main products and hence these have been identified as reportable segments by the Company’s Chief Operating
Decision Maker (“CODM”).
Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments
and amount allocated on a reasonable basis. Unallocated expenditure consist of common expenditure incurred for all
the segments and expenses incurred at corporate level. The assets and liabilities that cannot be allocated between the
segments are shown as unallocated assets and unallocated liabilities respectively.
The accounting policies of the reportable segments are the same as the Company’s accounting policies described in
Note 3. Earnings before Interest, Tax and Depreciation & Amortisation (EBITDA) are evaluated regularly by the CODM, in
deciding how to allocate resources and in assessing performance. The operating segments reported are the segments of
the Company for which separate financial information is available. The Company’s financing (including finance costs and
finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.
Pricing between operating segments are on an arm’s length basis in a manner similar to transactions with third parties.
The following table presents revenue and profit information and certain assets and liabilities information regarding the
Company’s business segments as at and for the year ended 31 March 2024 and 31 March 2023 respectively.
For the year ended 31 March 2024
(C in crore)
Particulars
Business Segments
Oil and Gas
Aluminium
Copper
Iron Ore
Power
Total
Revenue
External revenue
9,554 *
35,743
14,988
8,648
730
69,663
Inter segment revenue
-
-
-
-
-
-
Segment revenue
9,554
35,743
14,988
8,648
730
69,663
Results
Segment Results (EBIDTA) a
5,161
7,006
(72)
1,656
(234)
13,517
Less: Depreciation, depletion and
amortisation expense
1,317
1,952
232
159
129
3,789
Add: Other income, net of expenses b,c
(786)
64
2
6
12
(702)
Add: Other unallocable income,
net of expenses
5,315
Less: Finance costs
5,679
Add: Net exceptional gain
5,073
Net profit before tax
13,735
Other information
Segment Assets
18,326
51,043
2,942
4,866
3,090
80,267
Financial asset investments
60,158
Income tax assets (net of provisions)
3,496
Cash and cash equivalents (including other
bank balances and bank deposits)
2,817
Others
3,775
Total Assets
1,50,513
Segment Liabilities
10,694
20,448
5,078
2,927
277
39,424
Borrowings
42,232
Income tax liabilities (net)
606
(C in crore)
Particulars
Business Segments
Oil and Gas
Aluminium
Copper
Iron Ore
Power
Total
Deferred tax liabilities (net)
1,889
Others
826
Total Liabilities
84,977
Capital Expenditure d
2,264
4,284
88
572
180
7,403
Net (impairment)/ reversal or (write off)/
write back relating to assets e
550
(131)
(746)
-
-
2,112
* Refer note 34(a)
a)
EBITDA is a non-GAAP measure.
b)
Oher income includes amortisation of duty benefits relating to assets recognised as government grant.
c)
Includes cost of exploration wells written off.
d)
Total capital expenditure includes capital expenditure of C 15 crore not allocable to any segment.
e)
Total net impairment reversal includes impairment reversal on investments of C 2,439 crore, which is not allocable to
any segment (Refer Note 34).
For the year ended 31 March 2023
(C in crore)
Particulars
Business Segments
Oil and Gas
Aluminium
Copper
Iron Ore
Power*
Total*
Revenue
External revenue
8,137
39,950
12,351
5,928
827
67,193
Inter segment revenue
-
-
-
-
-
-
Segment revenue
8,137
39,950
12,351
5,928
827
67,193
Results
Segment Results (EBIDTA) a
4,221
5,160
(9)
930
(297)
10,005
Less: Depreciation, depletion and
amortisation expense
1,491
1,751
176
114
129
3,661
Add: Other income, net of expenses b,c
(315)
61
2
7
11
(234)
Add: Other unallocable income,
net of expenses
20,931
Less: Finance costs
4,384
Less: Net exceptional loss
3,780
Net profit before tax
18,877
Other information
Segment Assets
16,785
50,312
4,500
3,998
3,212
78,807
Financial asset investments
64,845
Deferred tax asset
5,910
Income tax assets (net of provisions)
1,943
Cash and cash equivalents (including other
bank balances and bank deposits)
5,986
Others
2,349
Total Assets
1,59,840
Segment Liabilities
10,645
21,579
4,753
2,064
241
39,282
Borrowings
42,023
Income tax liabilities (net)
46
Others
8,641
Total Liabilities
89,992
Capital Expenditure d
2,436
4,541
87
225
565
7,876
Net (write off)/impairment reversal relating
to assets e
18
-
-
-
(8,133)
(2,608)
* Restated, refer note 3(d)(i)
558
559
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
a)
EBITDA is a non-GAAP measure.
b)
Oher income includes amortisation of duty benefits relating to assets recognised as government grant.
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 relating to assets includes impairment reversal on investments of ` 5,507 crore, which
is not allocable to any segment (Refer Note 34).
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.
(C in crore)
Geographical Segments
Year ended
31 March 2024
Year ended
31 March 2023
Revenue by geographical segment
India
36,494
33,714
Europe
5,251
11,631
Mexico
1,560
3,817
The United states of America
1,971
3,426
China
3,335
2,535
Others
21,052
12,070
Total
69,663
67,193
The following is an analysis of the carrying amount of non-current assets, excluding deferred tax assets and financial assets,
analysed by the geographical area in which the assets are located:
(C in crore)
Carrying Amount of Segment Assets
As at
31 March 2024
Year ended
31 March 2023*
India
62,138
57,870
Total
62,138
57,870
* Restated, refer note 3(d)(i)
C) Information about major customers
No single customer has accounted for more than 10% of the Company’s revenue for the year ended 31 March 2024 and
31 March 2023.
D) Disaggregation of revenue
Below table summarises the disaggregated revenue from contract with customers:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Oil
7,894
6,718
Gas
1,612
1,546
Aluminium products
34,706
39,189
Copper Cathode
14,589
11,950
Iron Ore
5,128
2,212
Metallurgical coke
176
447
Pig Iron
3,274
3,198
Power
730
827
Others
1,858
1,691
Revenue from contracts with customers*
69,967
67,778
Loss from provisionally priced contracts under Ind AS 109
(304)
(585)
Total Revenue
69,663
67,193
*includes revenues from sale of services aggregating to C 98 crore (31 March 2023: C 88 crore) which is recorded over a period of time and the
balance revenue is recognised at a point in time.
5
Property, Plant and equipment, Intangible assets, Capital work-in-progress and Exploration intangible assets under development
(C in crore)
Particulars
Property, Plant and equipment
Capital
Work in
progress
(CWIP)
Exploration
intangible
assets under
development
Total including
capital work in
progress and
exploration
intangible
assets under
development
Freehold
Land
Buildings
Plant and
equipment
Oil & gas
producing
facilities
Furniture
and fixtures
Vehicles
Office
equipment
Right of
Use assets
(see note
below)
Total
Gross Block
As at 01 April 2022
859
7,234
48,605
50,142
237
322
475
332
1,08,206
24,994
2,654
1,35,854
Additions (Refer note (h))
60
75
1,482
-
4
11
50
125
1,807
12,369
1,090
15,266
CWIP written off (Refer note 3(d)(i))
-
-
-
-
-
-
-
-
-
(8,133)
-
(8,133)
Transfers/ Reclassifications*
2
129
1,371
1,413
4
1
(2)
-
2,918
(2,922)
-
(4)
Disposals/ Adjustments
-
(3)
(780)
(156)
(51)
(5)
(66)
-
(1,061)
-
-
(1,061)
Exploration costs written off (Refer note 33)
-
-
-
-
-
-
-
-
-
-
(315)
(315)
Exchange differences
15
125
827
4,610
(3)
-
(7)
3
5,570
959
248
6,777
As at 31 March 2023
936
7,560
51,505
56,009
191
329
450
460
1,17,440
27,267
3,677
1,48,384
Additions
13
111
910
-
3
9
4
161
1,211
4,463
1,038
6,712
CWIP written off (Refer note 34(c))
-
-
-
-
-
-
-
-
-
(131)
-
(131)
Transfers/ Reclassifications*
3
26
4,492
1,185
1
2
5
37
5,751
(5,816)
(69)
(134)
Disposals/ Adjustments
-
-
(337)
(142)
-
(5)
(5)
-
(489)
-
(26)
(515)
Exploration costs written off (Refer note 33)
-
-
-
-
-
-
-
-
-
-
(786)
(786)
Exchange differences
3
24
144
824
1
-
(1)
1
996
206
49
1,251
As at 31 March 2024
955
7,721
56,714
57,876
196
335
453
659
1,24,909
25,989
3,883
1,54,781
Accumulated depreciation, depletion,
amortisation and impairment
As at 01 April 2022
155
3,197
16,706
47,837
167
135
438
81
68,716
15,768
1,166
85,650
Charge for the year
5
270
2,361
958
11
25
36
18
3,684
-
-
3,684
Disposals/ Adjustments
-
(2)
(346)
-
(50)
(3)
(64)
-
(465)
-
-
(465)
Impairment charge/ (reversal) for the year
(Refer Note (g))
-
-
(220)
(103)
-
-
-
-
(323)
-
305
(18)
Transfers/ Reclassifications*
-
-
76
157
3
-
(3)
-
233
(233)
-
-
Exchange differences
12
113
646
4,186
(7)
-
(6)
2
4,946
1,238
112
6,296
As at 31 March 2023
172
3,578
19,223
53,035
124
157
401
101
76,791
16,773
1,583
95,147
Charge for the year
5
238
2,650
726
17
26
38
62
3,762
-
-
3,762
Disposals/ Adjustments
-
2
(247)
-
-
(3)
(13)
-
(261)
45
-
(216)
Impairment charge/ (reversal) for the year
(Refer Note 34)
18
165
227
(395)
1
1
-
27
44
116
(2)
158
Transfers/ Reclassifications*
-
(3)
3
17
-
-
-
-
17
-
(17)
-
Exchange differences
2
23
112
778
2
-
(4)
1
914
220
21
1,155
As at 31 March 2024
197
4,003
21,968
54,161
144
181
422
191
81,267
17,154
1,585
1,00,006
Net Book Value/Carrying amount
As at 01 April 2022
704
4,037
31,899
2,305
70
187
37
251
39,490
9,226
1,488
50,204
As at 31 March 2023
764
3,982
32,282
2,974
67
172
49
359
40,649
10,494
2,094
53,237
As at 31 March 2024
758
3,718
34,746
3,715
52
154
31
468
43,642
8,835
2,298
54,775
*Transfers/reclassification majorly includes capitalisation of CWIP to respective class of assets
560
561
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Right of Use (ROU) assets
(C in crore)
Particulars
ROU Land
ROU Building
ROU Plant and
Equipment
Total
Right of Use assets
Gross Block
As at 01 April 2022
288
43
1
332
Additions (Refer note (h))
125
-
-
125
Exchange differences
-
3
-
3
As at 31 March 2023
413
46
1
460
Additions
-
-
161
161
Transfers/ Reclassifications
-
-
37
37
Exchange differences
-
1
-
1
As at 31 March 2024
413
47
199
659
Accumulated depreciation and impairment
As at 01 April 2022
56
24
1
81
Charge for the year
10
8
-
18
Exchange differences
-
2
-
2
As at 31 March 2023
66
34
1
101
Charge for the year
12
11
40
63
Impairment charge for the year
27
-
-
27
Exchange differences
-
0
-
0
As at 31 March 2024
105
45
41
191
Net Book Value/Carrying amount
As at 01 April 2022
232
19
-
251
As at 31 March 2023
347
12
-
359
As at 31 March 2024
308
2
158
468
Intangible Assets
(C in crore)
Particulars
Software
License
ROU Cloud
Mining Rights
Total
Gross Block
As at 01 April 2022
319
-
227
546
Additions
7
-
815
822
Transfers/ Reclassifications
4
-
-
4
Disposals/ Adjustments
(154)
-
-
(154)
Exchange differences
(66)
-
-
(66)
As at 31 March 2023
110
-
1,042
1,152
Additions
6
151
100
257
Transfers/ Reclassifications
9
-
125
134
Exchange differences
(1)
-
-
(1)
As at 31 March 2024
124
151
1,267
1,542
(C in crore)
Particulars
Software
License
ROU Cloud
Mining Rights
Total
Accumulated amortisation and impairment
As at 01 April 2022
301
-
219
520
Charge for the year
14
-
5
19
Disposals/ Adjustments
(154)
-
-
(154)
Exchange differences
(67)
-
-
(67)
As at 31 March 2023
94
-
224
318
Charge for the year
12
20
16
48
Disposals/ Adjustments
-
-
1
1
Exchange differences
(1)
-
-
(1)
As at 31 March 2024
105
20
241
366
Net Book Value/Carrying amount
As at 01 April 2022
18
-
8
26
As at 31 March 2023
16
-
818
834
As at 31 March 2024
19
131
1,026
1,176
Capital Work-In-Progress (CWIP) Ageing Schedule
(C in crore)
CWIP
As at 31 March 2024
As at 31 March 2023*
Projects in
progress
Projects
temporarily
suspended
Total
Projects in
progress
Projects
temporarily
suspended
Total
Less than 1 year
3,436
-
3,436
4,024
3
4,027
1-2 years
1,738
1
1,739
1,167
3
1,170
2-3 years
279
-
279
250
5
255
More than 3 years
2,858
523
3,381
4,399
643
5,042
Total
8,311
524
8,835
9,840
654
10,494
* Restated, refer note 3(d)(i)
CWIP completion schedule for projects whose completion is overdue or has exceeded its cost compared to its
original plan:
(C in crore)
CWIP
As at 31 March 2024
As at 31 March 2023
To be completed in
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
Projects in Progress
Jharsuguda 1.25 MTPA
aluminium smelter Project
1,091
-
-
-
457
-
-
-
Lanjigarh alumina 2-5 MTPA
expansion Project
4,729
-
-
-
6,666
21
-
-
RDG gas Project
70
-
-
-
336
-
-
-
Oil & Gas development CWIP
836
-
-
-
226
121
-
-
Projects temporarily suspended
Lanjigarh alumina 5-6 MTPA
expansion Project
-
-
-
371
-
-
-
371
Others*
11
-
-
-
11
-
-
-
* Excludes ageing for existing Copper smelter plant and Copper 4 LTPA Expansion project which were on halt since April 2018. On 29 February
2024, the Hon’ble Supreme Court dismissed the Special Leave Petition filed by the Company. Basis detailed impairment analysis carried out by
the management, CWIP balance has been impaired during the year ended 31 March 2024. Post impairment, the carrying amount of CWIP as at
31 March 2024 is C 38 crore (31 March 2023: C 237 crore) for existing Copper smelter plant and C 104 crore (31 March 2023: C 35 crore) for Copper
4 LTPA Expansion project. Refer Note 3(c)(A)(ii)
562
563
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Exploration intangible assets under development Ageing Schedule
(C in crore)
Intangible assets under development
As at
31 March 2024
As at
31 March 2023
Projects in
progress
Projects in
progress
Less than 1 year
378
610
1-2 years
441
565
2-3 years
550
535
More than 3 years
929
384
Total
2,298
2,094
Title deeds of immovable properties not held in the name of Company
(C in crore)
Relevant line
item in the
Balance sheet
Description
of item of
property
Gross block
as at 31
March 2024
Gross block
as at 31
March 2023
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
1,798
1,749
Oil and Natural Gas
Corporation Limited
(ONGC) and Cairn
India Limited (now
a division of the
Company)
No
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.
Land
53
53
Erstwhile company
Sterlite Industries
(India) Limited, that
merged with the
Company
No
1965-2012*
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.
ROU Land
50
50
No
1993-2009*
Land
20
20
Erstwhile company
Vedanta Aluminium
Limited, that merged
with the Company
No
2008-2012*
* Multiple dates of acquisitions during the period disclosed.
Notes
a)
Plant and equipment include refineries, smelters, power plants, railway sidings, ships, river fleet and related facilities.
b)
During the year ended 31 March 2024, interest capitalised was C 560 crore (31 March 2023: C 331 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)
In accordance with the exemption given under Ind AS 101, which has been exercised by the Company, a first time adopter
can continue its previous GAAP policy for accounting for exchange differences arising from translation of long-term
foreign currency monetary items recognised in the previous GAAP financial statements for the period ending immediately
before the beginning of the first Ind AS financial reporting period, i.e., 01 April 2016.
Accordingly, foreign currency exchange differences arising on translation/settlement of long-term foreign currency
monetary items acquired before 01 April 2016 pertaining to the acquisition of a depreciable asset amounting to C 1 crore
loss (31 March 2023: C 11 crore loss) is adjusted to the cost of respective item of property, plant and equipment.
e)
Property, Plant and Equipment, Capital work-in-progress and exploration and evaluation assets net block includes share of
jointly owned assets with the joint venture partners C 6,430 crore (31 March 2023: C 5,776 crore).
f)
Reconciliation of depreciation, depletion and amortisation expense
(C in crore)
Particulars
For the year ended
31 March 2024
For the year ended
31 March 2023
Depreciation/Depletion/Amortisation expense on:
Property, Plant and Equipment (Including ROU assets)
3,762
3,684
Intangible assets
48
19
As per Property, Plant and Equipment and Intangible assets schedule
3,810
3,703
Less: Cost allocated to joint ventures and other adjustments
(21)
(42)
As per Statement of Profit and Loss
3,789
3,661
g)
(i)
During the year ended 31 March 2023, the Company had recognised a net impairment reversal of C 323 crore (after
considering impairment reversal of C 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 C 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 C 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 was based on the cash flows expected to be generated by the
projected oil and natural gas production profiles up to 2040, the expected dates of cessation of production sharing
contract ("PSC")/ cessation of production from each producing field based on the current estimates of reserves
and risked resources. Reserves assumptions for fair value less costs of disposal tests consider all reserves that a
market participant would consider when valuing the asset, which are usually broader in scope than the reserves
used in a value-in-use test. Discounted cash flow analysis used to calculate fair value less costs of disposal uses
assumption for short-term oil price of US$ 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 had been escalated at a rate of 2.4% per annum. The cash flows were 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 C 41 crore (US$ 5 million) and C 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 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 C 618 crore (US$ 78 million) had
been recognised against capitalised development costs. The Company had a liability towards ONGC of C 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 had adjusted the claims received in the favour of the Company against the liability
towards ONGC and the net payable as of 31 March 2023 amounted to C 135 crore (US$ 16 million).
h)
Pursuant to the merger of ACPL, the Company has recorded the gross book value of ACPL assets amounting to C 47 crore,
C 39 crore, C 75 crore and C 8,537 crore as an addition to freehold land, buildings, ROU land and CWIP, respectively for the
year ended 31 March 2023 (Refer note 3(d)(i) for details).
i)
Freehold land includes gross block of C 353 crore (31 March 2023: C 350 crore) and accumulated depreciation of
C 319 crore (31 March 2023: C 308 crore), which is available for use during the lifetime of the Production Sharing Contract
of the respective Oil and Gas blocks.
564
565
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
6
Financial Assets : Investments
A) Non Current Investments
Particulars
As at 31 March 2024
As at 31 March 2023
No.
Amount
(C in crore)
No.
Amount
(C in crore)
(a)
Investment in equity shares - at cost/
deemed cost a
(fully paid up unless otherwise stated)
Subsidiary companies
Quoted
- Hindustan Zinc Limited, of C 2 each b
(Refer Note 17)
2,74,31,54,310
44,398 2,74,31,54,310
44,398
Unquoted
- Bharat Aluminium Company Limited,
of C 10 each (including 5 shares held
jointly with nominees) b
11,25,18,495
553
11,25,18,495
553
- Monte Cello BV, The Netherlands, of
Euro 453.78 each (Refer note 3(d)(iv))
40
204
40
204
Less: Reduction pursuant to merger c
-
204
(204)
-
- Cairn India Holdings Limited (CIHL) of
GBP 1 each (Refer Note 34) d
26,64,89,074
23,811
31,83,40,911
25,512
Less: Reduction pursuant to merger c
(15,067)
8,744
(15,067)
10,445
- Vizag General Cargo Berth Private
Limited, of C 10 each (including 6
shares held jointly with nominees)
4,71,08,000
182
4,71,08,000
182
- Talwandi Sabo Power Limited, of C
10 each (including 6 shares held jointly
with nominees)
3,20,66,09,692
3,207 3,20,66,09,692
3,207
- Sesa Resources Limited, of C 10 each
(including 6 shares held jointly with
nominees)
12,50,000
757
12,50,000
757
- Bloom Fountain Limited, of US$ 1
each
2,20,10,00,001
14,734
2,20,10,00,001
14,734
Less: Reduction pursuant to merger c
(14,320)
414
(14,320)
414
- MALCO Energy Limited, of C 2 each
(including 6 shares held jointly with
nominees)
2,33,66,406
116
2,33,66,406
116
Less: Reduction pursuant to merger c
(23)
93
(23)
93
- THL Zinc Ventures Ltd, of 1 ordinary
share of US$ 1 and 89,000 Ordinary
Shares (31 March 2023: 1,00,000) of
US$ 100 each f
89,001
46
1,00,001
46
Less: Reduction pursuant to merger c
(46)
-
(46)
-
- THL Zinc Holding BV, of EURO 1 each
37,38,000
23
37,38,000
23
Less: Reduction pursuant to merger c
(23)
-
(23)
-
- ESL Steel Limited, of C 10 each
(including 6 shares held jointly with
nominees)
1,76,55,53,040
1,770 1,76,55,53,040
1,770
-Ferro Alloys Corporation Limited, of
C 1 each (including 6 shares held jointly
with nominees)
34,00,00,000
37
34,00,00,000
37
Vedanta Displays Limited, of C 1 each
(including 6 shares held jointly with
nominees)
25,95,00,000
26
-
-
Vedanta Semiconductors Private
Limited, of C 1 each (including 6 shares
held jointly with nominees)
48,82,00,000
49
-
-
Vedanta Aluminium Metal Limited, of
C 1 each (including 6 shares held jointly
with nominees)
1,00,000
0
-
-
Particulars
As at 31 March 2024
As at 31 March 2023
No.
Amount
(C in crore)
No.
Amount
(C in crore)
Vedanta Base Metals Limited, of C 1
each (including 6 shares held jointly
with nominees)
1,00,000
0
-
-
Vedanta Iron and Steel Limited, of C 1
each (including 6 shares held jointly
with nominees)
1,00,000
0
-
-
Meenakshi Energy Limited, of C 10 each
(including 6 shares held jointly with
nominees)
10,00,000
1
-
-
Sesa Iron and Steel Limited, of C 10
each (including 6 shares held jointly
with nominees)
10,000
0
-
-
Associate companies - unquoted
- Gaurav Overseas Private Limited, of
C 10 each
14,23,000
1
14,23,000
1
Investment in equity shares at fair
value through other comprehensive
income
Quoted
- Sterlite Technologies Limited, of C 2
each
47,64,295
53
47,64,295
70
Unquoted
- Sterlite Power Transmission Limited,
of C 2 each
19,05,718
11
19,05,718
11
- Goa Shipyard Limited of C 5 each
2,50,828
0
2,50,828
0
(b)
Investment in preference shares of
subsidiary companies - at cost
Unquoted
- Bloom Fountain Limited, 0.25%
Optionally Convertible Redeemable
Preference shares of US$ 1 each
18,59,900
907
18,59,900
907
- Bloom Fountain Limited, 0.25%
Optionally Convertible Redeemable
Preference shares of US$ 100 each
3,60,500
215
3,60,500
215
- THL Zinc Holding BV, 0.25% Optionally
Convertible Redeemable Preference
shares of EURO 1 each (Refer note 34)
36,04,179
1,635
55,00,000
2,495
Less: Reduction pursuant to merger c
(1,635)
-
(2,495)
-
(c)
Investment in Preference shares -
Unquoted at fair value through profit
and loss
- Serentica Renewables India 3 Private
Limited, 0.0001% Optionally Convertible
Redeemable Preference shares of C 10
each (Refer Note 38 and 39)
13,99,80,000
140
6,90,00,000
69
- Serentica Renewables India 9 Private
Limited, 0.0001% Optionally Convertible
Redeemable Preference shares of C 10
each (Refer Note 38 and 39)
3,00,00,000
30
-
-
(d)
Investment in Government or Trust
securities at cost / amortised cost
- 7 Years National Savings Certificates
(31 March 2024: C 35,450; 31 March
2023: C 35,450) (Deposit with Sales Tax
Authority)
NA
0
NA
0
- UTI Master gain of C 10 each
(31 March 2024: C 4,072; 31 March
2023: C 4,072)
100
0
100
0
- Vedanta Limited ESOS Trust
(31 March 2024: C 5,000; 31 March
2023: C 5,000)
NA
0
NA
0
566
567
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Particulars
As at 31 March 2024
As at 31 March 2023
No.
Amount
(C in crore)
No.
Amount
(C in crore)
(e)
Investments in debentures of subsidiary
companies at cost / amortised cost
- MALCO Energy Limited, compulsorily
convertible debentures of C 1,000 each
6,13,54,483
6,136
6,13,54,483
6,136
Less: Reduction pursuant to merger c
(6,118)
18
(6,118)
18
(f)
Investments in Co-operative societies at
fair value through profit and loss
- Sesa Ghor Premises Holders
Maintenance Society Limited, of
C 200 each (31 March 2024: C 8,000;
31 March 2023: C 8,000)
40
0
40
0
- Sesa Goa Sirsaim Employees
Consumers Co- operative Society
Limited, of C 10 each (31 March 2024:
C 2,000; 31 March 2023: C 2,000)
200
0
200
0
- Sesa Goa Sanquelim Employees
Consumers Co- operative Society
Limited, of C 10 each (31 March 2024:
C 2,300; 31 March 2023: C 2,300)
230
0
230
0
-Sesa Goa Sonshi Employees
Consumers Co- operative Society
Limited, of C 10 each (31 March 2024:
C 4,680; 31 March 2023: C 4,680)
468
0
468
0
-Sesa Goa Codli Employees Consumers
Co- operative Society Limited, of
C 10 each (31 March 2024: C 4,500;
31 March 2023: C 4,500)
450
0
450
0
- Sesa Goa Shipyard Employees
Consumers Co-operative Society
Limited, of C 10 each (31 March 2024:
C 5,000; 31 March 2023: C 5,000)
500
0
500
0
- The Mapusa Urban Cooperative Bank
Limited, of C 25 each (31 March 2024:
C 1,000; 31 March 2023: C 1,000)
40
0
40
0
(g)
Investment in Bonds/ Debentures -
Unquoted at fair value through profit
and loss
- Infrastructure Leasing & Financial
Services Limited
22
30
Less: Provision for diminution in value
of investments in:
Bloom Fountain Limited (Refer Note 34)
(756)
(756)
Sesa Resources Limited
(750)
(750)
Cairn India Holdings Limited (Refer
Note 34)
(424)
(1,799)
Total
59,902
59,872
Aggregate amount of impairment
(1,930)
(3,305)
Aggregate amount of quoted
investments
44,451
44,468
Market value of quoted investments
80,221
80,554
Aggregate carrying amount of
unquoted investments
15,451
15,404
Following is the key information of significant investee entities:
Particulars
Principal place of business
Ownership Interest (in %)
As at
31 March 2024
As at
31 March 2023
Subsidiary companies
Hindustan Zinc Limited
India
64.92
64.92
Bharat Aluminium Company Limited
India
51.00
51.00
Cairn India Holdings Limited ("CIHL")
Jersey*
100.00
100.00
ESL Steel Limited
India
95.49
95.49
Talwandi Sabo Power Limited
India
100.00
100.00
*CIHL through its wholly owned subsidiary, Cairn Energy Hydrocarbons Limited, incorporated in Scotland is involved in oil and gas exploration,
development and production business in India.
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 an
additional 20% of the equity capital in HZL through an open offer. The Company exercised the first call option on 29 August
2003 and acquired an additional 18.9% of HZL’s issued share capital, increasing its shareholding to 64.9%. The second call
option provides the Company the right to acquire the Government of India’s remaining 29.5% share in HZL. This call option
is subject to the right of the Government of India to sell 3.5% of HZL shares to HZL employees. The Company exercised the
second call option on 21 July 2009. The Government of India disputed the validity of the call option and has refused to act
upon the second call option. Consequently, the Company invoked arbitration. The Government of India without prejudice
to the position on the Put / Call option issue has received approval from the Cabinet for divestment and the Government
is looking to divest through the auction route. Meanwhile, the Supreme Court has, in January 2016, directed status quo
pertaining to disinvestment of Government of India’s residual shareholding while hearing the public interest petition filed.
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 the arbitration filed by
the Company, the arbitral tribunal by a majority award rejected the claims of the Company on the grounds that the clauses
relating to the call option, the right of first refusal, the “tag-along” rights and the restriction on the transfer of shares violate
the erstwhile Companies Act, 1956 and are not enforceable. The Company has challenged the validity of the majority award
in the Hon'ble High Court of Delhi and sought for setting aside the arbitration award to the extent that it holds these clauses
ineffective and inoperative. The Government of India also filed an application before the High Court of Delhi to partially set
aside the arbitral award in respect of certain matters involving valuation. The matter is currently scheduled for hearing by
the Delhi High Court. Meanwhile, the Government of India without prejudice to its position on the Put / Call option issue has
received approval from the Cabinet for divestment and the Government is looking to divest through the auction route.
On 09 January 2012, the Company offered to acquire the Government of India’s interests in HZL and BALCO for C 15,492
crore and C 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.
568
569
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
In view of the lack of resolution on the options, the non-response to the exercise and valuation request from the
Government of India, the resultant uncertainty surrounding the potential transaction and the valuation of the consideration
payable, the Company considers the strike price of the options to be at the fair value, which is effectively nil, and hence the
call options have not been recognised in the financial statements.
c.
Reduction pursuant to merger of Cairn India Limited with Vedanta Limited accounted for in the year ended 31 March 2017.
d.
The Company through its wholly owned subsidiary, CIHL holds approximately 52% stake in AvanStrate Inc, Japan
(“ASI”) which has wholly owned subsidiaries in Korea and Taiwan. Majority of the balance stake in ASI is held by Hoya
Corporation, Japan (“Hoya”). There are certain operational matters at ASI and the Company is currently in dialog with Hoya
for a commercial settlement against their Put option and shareholder loan. In the meanwhile, the Company has applied
principles of Ind AS 36 – Impairment of Assets for testing impairment for its investment in ASI and has used the fair
values of net assets for the purpose of determining that there is no material impact to the net carrying value of investment
in ASI amounting to C 342 crore.
e.
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.
f.
During the year ended 31 March 2024, the Company has provided maximum financial guarantee of C 8,168 crore
(US$ 980 million) against the external borrowing of C 7,433 crore (US$ 900 million) taken by its wholly owned subsidiary,
THL Zinc Ventures Limited ("THLZVL"). The borrowing is primarily secured by the recoverable value of the Zinc
International business (“VZI”) which is held under THLZVL. As at the year ended 31 March 2024, the recoverable amount
of VZI has been determined based on the fair value less cost of disposal approach, using the discounted cash flow
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 on expiry of LOM. The cash flows
are discounted using the post tax weighted average cost of capital ("WACC") is 13.6%. The resultant recoverable amount
is higher than the guarantee outstanding and hence no expected credit loss has been considered necessary. Based on the
sensitivities carried out by the Company, change in WACC assumptions by 1% would lead to a change in recoverable value
by C 675 crore (US$ 81 million).
B) Current Investment
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Investment in preference shares of subsidiary companies - at cost
THL Zinc Ventures Ltd, 70,00,000 - 0.25% Optionally Convertible Redeemable Preference
shares of US$ 1 each (fully paid up) (Refer Note 34)
-
3,187
Investments carried at fair value through profit and loss
Investment in mutual funds- unquoted
256
1,786
Total
256
4,973
Aggregate amount of unquoted investments
256
4,973
7
Financial assets - Trade receivables
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023*
Non-current
Current
Total Non-current
Current
Total
Secured, Undisputed
Unbilled dues
-
-
-
-
-
-
Not due
-
177
177
-
143
143
Less than 6 months
-
100
100
-
162
162
6 months -1 year
-
4
4
-
6
6
1-2 Years
-
2
2
-
-
-
2-3 years
-
0
0
-
-
-
More than 3 years
-
-
-
-
3
3
sub-total
-
283
283
-
314
314
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023*
Non-current
Current
Total Non-current
Current
Total
Unsecured, disputed
Unbilled dues
-
-
-
-
-
-
Not due
-
-
-
-
-
-
Less than 6 months
154
-
154
58
14
72
6 months -1 year
49
-
49
78
-
78
1-2 Years
136
-
136
190
-
190
2-3 years
165
-
165
106
-
106
More than 3 years
1,189
8
1,197
1,754
6
1,760
sub-total
1,693
8
1,701
2,186
20
2,206
Unsecured, Undisputed
Unbilled dues
-
95
95
-
98
98
Not due
-
553
553
-
472
472
Less than 6 months
-
916
916
-
672
672
6 months -1 year
-
7
7
-
120
120
1-2 Years
-
12
12
-
10
10
2-3 years
-
1
1
-
-
-
More than 3 years
-
-
-
-
5
5
sub-total
-
1,584
1,584
-
1,377
1,377
Less: Provision for expected credit loss
(1,020)
(11)
(1,031)
(1,339)
(17)
(1,356)
Total
673
1,864
2,537
847
1,694
2,541
(a) The credit period given to customers ranges from zero to 90 days (31 March 2023: 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 C 726 crore (net of Provision for expected credit loss ("ECL") recognised on account of time
value of money) as at 31 March 2024 (31 March 2023: C 878 crore, net of ECL) 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, C 365 crore, net of ECL (31 March 2023: C 374 crore, net of ECL) 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 C 234 crore, net of ECL (31 March 2023:
C 234 crore, net of ECL) relates to alleged short supply of power for which the Company’s appeal on certain grounds are
pending before APTEL.
(d) Trade receivables does not include any receivables from directors and officers of the Company.
(e)
The total trade receivables as at 01 April 2022 were C 3,403 crore (net of provision for ECL).
8
Financial assets - Loans
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total Non-current
Current
Total
Unsecured, considered good
Loans to related parties (Refer note 39 and 41(c))
517
1,225
1,742
126
504
630
Loans and advances to employees
-
2
2
-
3
3
Unsecured, considered credit impaired
Loans to related parties (Refer note 39)
-
5
5
-
5
5
Less: Provision for expected credit loss
-
(5)
(5)
-
(5)
(5)
Total
517
1,227
1,744
126
507
633
570
571
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
9
Financial assets - Others
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023*
Non-current
Current
Total Non-current
Current
Total
Bank deposits a, b
675
-
675
521
-
521
Site restoration asset b
822
-
822
701
-
701
Unsecured, considered good
Security deposits
188
24
212
144
11
155
Advance recoverable (Oil and Gas Business)
-
6,345
6,345
-
6,658
6,658
Others c
8
2,503
2,511
748
70
818
Receivable from related parties (Refer note 39)
-
784
784
-
501
501
Unsecured, considered credit impaired
Security deposits
15
1
16
15
1
16
Others c
350
527
877
467
199
666
Less: Provision for expected credit loss
(365)
(528)
(893)
(482)
(200)
(682)
Total
1,693
9,656
11,349
2,114
7,240
9,354
* Restated, refer note 3(d)(i)
(a) Bank deposits includes fixed deposits with maturity more than 12 months of C 193 crore (31 March 2023: C 107 crore)
under lien with bank, C 4 crore (31 March 2023: C Nil crore) under lien with others, C 207 crore (31 March 2023: C 208
crore) held as reserve created against principal payment on loans from banks, C 201 crore (31 March 2023: C 146 crore)
held as interest reserve created against interest payment on loans from banks, C 68 crore (31 March 2023: C 58 crore)
held as margin money created against bank guarantee and C 2 crore (31 March 2023: C 2 crore) held as fixed deposit for
closure cost.
(b) Bank deposits and site restoration asset earns interest at fixed rate based on respective deposit rate.
(c)
Government of India (GoI) vide Office Memorandum (“OM”) No. O-19025/10/2005-ONG-DV dated 01 February 2013
allowed for Exploration in the Mining Lease Area after expiry of Exploration period and prescribed the mechanism for
recovery of such Exploration Cost incurred. Vide another Memorandum dated 24 October 2019, GoI clarified that all
approved Exploration costs incurred on Exploration activities, both successful and unsuccessful, are recoverable in the
manner as prescribed in the OM and as per the provisions of PSC. Accordingly, the Company has started recognising
revenue, for past exploration costs, through increased share in the joint operations revenue as the Company believes that
cost recovery mechanism prescribed under OM for profit petroleum payable to GoI is not applicable to its Joint operation
partner. During the year, the Arbitration Tribunal has issued Final Partial Award which allowed for recovery of exploration
costs (Refer Note 34(a)). Accordingly, the Company has recognised additional C 240 crore (US$ 29 million). At year end,
an amount of C 1,114 crore (US$ 134 million) (31 March 2023: C 859 crore (US$ 105 million)) is receivable from its joint
operation partner on account of this. The Company is actively engaging with Joint operation partner and the same will be
recovered through revenue in due course.
10 Other assets
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total Non-current
Current
Total
Capital advances
1,121
-
1,121
687
-
687
Advances for related party supplies (Refer note 39)
20
1,041
1,061
25
1,569
1,594
Advances for supplies
-
1,052
1,052
-
1,480
1,480
Others
Balance with government authorities a
721
821
1,542
631
1,006
1,637
Loan to employee benefit trust
154
-
154
53
-
53
Others b
675
451
1,126
650
662
1,312
Unsecured, considered doubtful
Capital advances
173
-
173
176
-
176
Balance with government authorities
3
107
110
3
106
109
Advance for supplies
-
63
63
-
58
58
Others b
201
2
203
380
4
384
Less : Provision for doubtful advances
(377)
(172)
(549)
(559)
(168)
(727)
Total
2,691
3,365
6,056
2,046
4,717
6,763
(a) Includes C 34 crore (31 March 2023: C 34 crore), being Company’s share of gross amount of C 97 crore (31 March 2023:
C 97 crore) paid under protest on account of Education Cess and Secondary Higher Education Cess for the financial year
2013-14.
(b) Others include claim receivables, advance recoverable (oil and gas business), prepaid expenses and export
incentive receivables.
11 Inventories
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Raw Materials
1,540
1,706
Goods-in transit
1,315
1,816
Work-in-progress
2,186
2,503
Finished goods
298
336
Fuel Stock
897
1,151
Goods-in transit
54
32
Stores and Spares
654
671
Goods-in transit
2
2
Total
6,946
8,217
(a) For method of valuation for each class of inventories, refer note 3(a)(I).
(b) Inventory held at net realisable value amounted to C 1,451 crore (31 March 2023: C 1,824 crore).
(c)
Write down of inventories amounting to C 105 crore has been charged to the Statement of Profit and Loss during the year
(31 March 2023: C 43 crore).
572
573
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
12 Current financial assets - Cash and cash equivalents
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Balances with banks a
1,431
5,088
Deposits with original maturity of less than 3 months (including interest accrued thereon) b
57
59
Cash on hand
0
0
Total
1,488
5,147
(a) Including foreign inward remittances aggregating C 15 crore (US$ 2 million) (31 March 2023: C 223 crore (US$ 27 million))
held by banks in their nostro accounts on behalf of the Company.
(b) Bank deposits earn interest at fixed rate based on respective deposit rates.
13 Current financial assets - Other bank balances
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Bank deposits with original maturity of more than 3 months but less than 12 months (including interest
accrued thereon) a, b, d
472
202
Bank deposits with original maturity of more than 12 months (including interest accrued thereon) c, d
52
0
Earmarked unpaid dividend accounts e
128
114
Earmarked escrow account f
2
2
Total
654
318
(a) Includes C 34 crore (31 March 2023: C 66 crore) on lien with banks and margin money of C 82 crore (31 March 2023:
C 41 crore).
(b) Restricted funds of C 26 crore (31 March 2023: C 22 crore) on lien with others and C 258 crore (31 March 2023: C 64 crore)
held as margin money created against bank guarantee.
(c)
Includes C 0 crore (31 March 2023: C 0 crore) of margin money with banks and fixed deposit under lien with others of
C 0 crore (31 March 2023: C 0 crore).
(d) Bank deposits earn interest at fixed rate based on respective deposit rates.
(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
As at 31 March 2024
As at 31 March 2023
Number
(in crore)
Amount
(C in crore)
Number
(in crore)
Amount
(C in crore)
A.
Authorised equity share capital
Opening and Closing balance [equity shares of C 1/- each
with voting rights]
4,402
4,402
4,402
4,402
Authorised preference share capital
Opening and Closing balance [preference shares of C 10/-
each]
301
3,010
301
3,010
B.
Issued, subscribed and paid up
Equity shares of C 1/- each with voting rights a, b
372
372
372
372
372
372
372
372
(a) Includes 2,98,632 (31 March 2023: 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 78,66,397 (31 March 2023: 40,05,075) equity shares held by Vedanta Limited ESOS Trust ("VESOS Trust").
C.
Shares held by the Ultimate holding company and its subsidiaries*
Particulars
As at 31 March 2024
As at 31 March 2023
Number of
Shares held
(in crore)
% of holding
Number of
Shares held
(in crore)
% of holding
Twin Star Holdings Ltd
156.48
42.10
172.48
46.40
Finsider International Company Limited
9.79
2.63
16.35
4.40
Welter Trading Limited
3.82
1.03
3.82
1.03
Vedanta Holdings Mauritius Limited
10.73
2.89
10.73
2.89
Vedanta Netherlands Investments BV
0.15
0.04
0.50
0.13
Vedanta Holdings Mauritius II Limited
49.28
13.26
49.28
13.26
Total
230.25
61.95
253.16
68.11
* 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 Vedanta Incorporated (formerly known as Volcan Investments Limited) ("Vedanta Inc"),
the ultimate holding Company.
D.
Details of shareholders holding more than 5% shares in the Company *
Particulars
As at 31 March 2024
As at 31 March 2023
Number of
Shares held
(in crore)
% of holding
Number of
Shares held
(in crore)
% of holding
Twin Star Holdings Limited
156.48
42.10
172.48
46.40
Vedanta Holdings Mauritius II Limited
49.28
13.26
49.28
13.26
Life Insurance Corporation of India
32.79
8.82
33.54
9.02
* 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
As at 31 March 2024
As at 31 March 2023
Number of
Shares held
(in crore)
% of holding % Change during
the year
Number of
Shares held
(in crore)
% of holding
Twin Star Holdings Ltd
156.48
42.10
(4.30)
172.48
46.40
Finsider International Company Limited
9.79
2.63
(1.77)
16.35
4.40
Welter Trading Limited
3.82
1.03
-
3.82
1.03
Vedanta Holdings Mauritius II Limited
49.28
13.26
-
49.28
13.26
Vedanta Holdings Mauritius Limited
10.73
2.89
-
10.73
2.89
Vedanta Netherlands Investments BV
0.15
0.04
(0.09)
0.50
0.13
Mr. Pravin Agarwal
0.00
0.00
-
0.00
0.00
Ms. Suman Didwania
0.01
0.00
-
0.01
0.00
Mr. Ankit Agarwal
0.00
0.00
-
0.00
0.00
Ms. Sakshi Mody
0.00
0.00
-
0.00
0.00
Total
230.26
61.95
(6.16)
253.17
68.11
574
575
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
F.
Other disclosures
(i)
The Company has one class of equity shares having a par value of C 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 C 10 crore. There are 1,99,366 equity shares (31 March 2023: 2,00,038
equity shares) of C 1 each pending clearance from NSDL. The Company has filed an application in Hon'ble High Court of
Mumbai to cancel these shares, the final decision on which is pending. Hon'ble High Court of Judicature at Mumbai, vide
its interim order dated 06 September 2002 restrained any transaction with respect to subject shares.
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
net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to
ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year,
then the total dividend distribution is less than the total distributable reserves for that year. Consequent to introduction of
Companies Act, 2013 (“Act”), the requirement to mandatorily transfer a specified percentage of the net profit to general
reserve has been withdrawn.
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.
The Company is in the process of complying with the further requirements specified in the NCLT Order.
b)
Securities premium: The amount received in excess of face value of the equity shares is recognised in securities premium.
This reserve is utilised in accordance with the specific provisions of the Act.
C)
Preference share redemption reserve: The Act provides that companies that issue preference shares may redeem those
shares from profits of the Company which otherwise would be available for dividends, or from proceeds of a new issue
of shares made for the purpose of redemption of the preference shares. If there is a premium payable on redemption, the
premium must be provided for, either by reducing the additional paid in capital (securities premium account) or net income,
before the shares are redeemed. If profits are used to redeem preference shares, the value of the nominal amount of
shares redeemed should be transferred from profits (retained earnings) to the preference share redemption reserve. This
amount should then be utilised for the purpose of redemption of redeemable preference shares. This reserve can be used
to issue fully paid-up bonus shares to the shareholders of the Company.
d)
Capital reserve: The balance in capital reserve has mainly arisen consequent to merger of Cairn India Limited with
the Company.
e)
Foreign currency translation reserve: The Statement of Profit and Loss of oil and gas business is translated into Indian
Rupees (C) at the average rates of exchange during the year/ exchange rates as on the date of the transaction and the
Balance Sheet is translated at the exchange rate as at the reporting date. Exchange difference arising on translation is
recognised in other comprehensive income and would be recycled to the statement of profit and loss as and when these
operations are disposed off.
f)
Share Based Payment Reserve: Share-based payments reserve represents amount of fair value, as on the date of grant,
of unvested options and vested options not exercised till date, that have been recognised as expense in the statement of
profit and loss till date.
g)
Hedging reserve: Hedging reserve represents the cumulative effective portion of gains or losses arising on changes in
fair value of hedging instruments entered into for cash flow hedges, which is recognised in OCI and later reclassified to
statement of profit and loss when the hedge item affects profit or loss or treated as basis adjustment if a hedged forecast
transaction subsequently results in the recognition of a non-financial asset or non-financial liability.
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’s
overall strategy remains unchanged from previous year.
The Company sets the amount of capital required on the basis of annual business and long-term operating plans which include
capital and other strategic investments.
The funding requirements are met through a mixture of equity, internal fund generation and borrowings. The Company’s policy
is to use current and non-current borrowings to meet anticipated funding requirements.
The Company monitors capital on the basis of the gearing ratio which is net debt divided by total capital (equity plus net debt).
The Company is not subject to any externally imposed capital requirements.
Net debt are non-current and current debts as reduced by cash and cash equivalents, other bank balances and short term
investments. Equity comprises all components including other comprehensive income.
The following table summarises the capital of the Company:
(C in crore, except otherwise stated)
Particulars
As at
31 March 2024
As at
31 March 2023*
Cash and cash equivalents (Refer note 12)
1,488
5,147
Other bank balances a (Refer note 13)
240
116
Non-current bank deposits a (Refer note 9)
400
315
Short term investments (Refer note 6B)
256
1,786
Total cash (a)
2,384
7,364
Non-current borrowings (Refer note 17A)
28,320
32,606
Current borrowings (Refer note 17B)
13,912
9,417
Total borrowings (b)
42,232
42,023
Net debt (c)=(b-a)
39,848
34,659
Total equity
65,536
69,848
Total capital (equity + net debt) (d)
1,05,384
1,04,507
Gearing ratio (times) (c/d)
0.38
0.33
* Restated, refer note 3(d)(i)
(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 C 689
crore (31 March 2023: C 408 crore) have been excluded from ‘total cash’ in the capital management disclosures.
576
577
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
17 Financial liabilities - Borrowings
A) Non- current borrowings
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
At amortised cost
Secured
Non-convertible debentures
12,626
7,087
Term loans from banks
- Rupee term loans
24,656
25,126
External commercial borrowings
2,917
3,261
Unsecured
Non-convertible debentures
-
800
Deferred sales tax liability
12
28
Rupee term loans from banks
225
1,295
Loan from Related parties (Refer Note 39)
-
1,109
Redeemable preference shares
2
2
Non current borrowings
40,437
38,708
Less: Current maturities of long term borrowings a
(12,117)
(6,102)
Total Non current borrowings (Net) (A)
28,320
32,606
Current borrowings (Refer note 17B) (B)
13,912
9,417
Total borrowings (A+B)
42,232
42,023
B) Current borrowings
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
At amortised cost
Secured
Working Capital Loan
-
70
Current maturities of long term borrowings a
11,880
4,213
Unsecured
Working Capital Loan
195
-
Loan from Related parties (Refer Note 39)
1,600
-
Loans repayable on demand from banks
-
2,256
Commercial paper
-
489
Rupee term loans from banks
-
500
Current maturities of long term borrowings a
237
1,889
Total
13,912
9,417
(a) Current Maturities of long term borrowings consists of:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Secured
Non-convertible debentures
3,366
-
Term loans from banks
- Rupee term loans
7,655
3,828
External commercial borrowings
859
385
Unsecured
Deferred sales tax liability
11
18
Redeemable preference shares
2
2
Non-convertible debentures
-
800
Rupee term loans from banks
224
1,069
Total
12,117
6,102
b)
Details of Non-convertible debentures issued by the Company have been provided below (Carrying Value)
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
8.74% due June 2032
4,089
4,089
9.20% due February 2030
2,000
2,000
12.00% due June 2025
3,170
-
12.00% due March 2025
2,368
-
7.68% due December 2024
999
998
3m T-bill rate + 240 bp due March 2024*
-
800
Total
12,626
7,887
* 3 month treasury bill rate as at 31 March 2023 was 6.34%
c)
The Company has taken borrowings towards funding of its acquisitions, capital expenditure and working capital
requirements. The borrowings comprise funding arrangements from various banks and financial institutions. The details
of security provided by the Company to various lenders on the assets of the Company are as follows:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Secured non-current borrowings
28,319
31,261
Secured current borrowings
11,880
4,283
Total secured borrowings
40,199
35,544
(C in crore)
Facility Category
Security details
As at
31 March 2024
As at
31 March 2023
Working capital loans
Secured Working Capital loans
-
70
External Commercial
Borrowings
A first pari passu charge by way of hypothecation on the specified movable fixed
assets of the Company pertaining to its manufacturing facilities comprising:
(i) alumina refinery having output of 6 MTPA along with co-generation captive
power plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha and
(ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9*135)
MW CPP at Jharsuguda, Odisha.
1,823
2,037
First pari passu charge by way of hypothecation on all present and future
movable assets of the Company with a minimum fixed asset cover of 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) 1 MTPA (proposed capacity of 6 MTPA) alumina refinery along with 90 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),
Cambay oil fields, Ravva Oil and Gas fields (under PKGM-1 block) and
OALP blocks.
1,094
1,224
Non-Convertible
Debentures
Secured by way of first pari passu charge on whole of the movable fixed assets
of:
(i) alumina refinery having output of 1 MTPA along with co-generation captive
power plant with an aggregate capacity of 90 MW at Lanjigarh, Odisha; and
(ii) 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.
2,000
2,000
578
579
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(C in crore)
Facility Category
Security details
As at
31 March 2024
As at
31 March 2023
Non-convertible
Debentures
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 furniture and fixtures erected/ installed or to be erected/installed
thereon and hypothecation over movable fixed assets excluding capital work
in progress in relation to the aluminium division comprising 6 MTPA alumina
refinery along with 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 2400 MW power plant in Jharsuguda, Odisha including
its movable plant and machinery, machinery spares, tools and accessories and
other movable fixed assets.
4,089
4,089
Secured by way of first pari-passu charge on the specific movable fixed assets.
The whole of the movable fixed assets both present and future, of the Company
in relation to the aluminium division, comprising the following facilities:
(i) 1 MTPA alumina refinery along with 90 MW co-generation captive power
plant in 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 fixed assets.
999
998
Secured by :-
(i) first ranking pari passu charge, by way of hypothecation, over the movable
fixed assets of the Company to be more particularly set out in the deed of
hypothecation;
(ii) first ranking exclusive charge, by way of hypothecation, over certain
charged receivables and designated cash account to be more particularly
set out in the deed of hypothecation; and
(iii) a pledge over shares constituting 100 per cent of the share capital of Sesa
Iron and Steel Limited; and
(iv) any other security as may be agreed between the Company and the
Trustee.
3,170
-
Secured by
(i) 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW)
captive power plant in Jharsuguda, Odisha;
(ii) 6 MTPA Alumina refinery along with 90 MW co-generation captive power
plant (operating capacity) in Lanjigarh, Odisha;
(iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at
Jharsuguda, Odisha;
(iv) Copper plant assets at Silvassa including 245,000 MT of blister/ secondary
material processing plant, a 216,000 TPA copper refinery plant and a
copper rod mill with an installed capacity of 258,000 TPA;
(v) 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); OALP
blocks;
(vi) all assets, business and undertaking of every kind (tangible movable
assets constituting fixed assets) of the Company related to exploration,
mining, processing, and manufacturing of iron ore and its derivatives in
Karnataka and Goa. These assets include pig iron plants, metallurgical
coke plants, and power plants in Goa; and
(vii) a pledge over shares constituting 100 per cent of the share capital of Sesa
Iron and Steel Limited.
2,368
-
(C in crore)
Facility Category
Security details
As at
31 March 2024
As at
31 March 2023
Term loans from banks
(includes rupee term
loans and foreign
currency term loans)
Secured by a pari passu charge by way of hypothecation of all the movable
fixed assets of the Company pertaining to its aluminium division project
consisting:
(i) alumina refinery having output of 1 MTPA (Refinery) along with co-
generation captive power plant with an aggregate capacity of 90 MW at
Lanjigarh, Orissa (Power Plant); and
(ii) aluminium smelter having output of 1.6 MTPA along with a 1,215 (9x135)
MW CPP at Jharsuguda, Orissa (Smelter) (the Refinery, Power Plant and
Smelter).
Also, a first pari passu charge by way of equitable mortgage on the land
pertaining to the mentioned project of aluminium division.
1,433
1,605
Secured by a pari passu charge by way of hypothecation on the movable fixed
assets of the Lanjigarh Refinery Expansion Project including 210 MW Power
Project. Lanjigarh Refinery Expansion Project shall specifically exclude the
1 MTPA alumina refinery of the Company along with 90 MW power plant in
Lanjigarh and all its related expansions.
310
359
Secured by a pari passu charge by way of hypothecation on the movable fixed
assets of the the Company pertaining to its aluminium division comprising
1 MTPA alumina refinery 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.
2,765
3,394
Secured by a pari passu charge by way of hypothecation/ equitable mortgage
of the movable/ immovable fixed assets of the Company pertaining to its
aluminium division comprising 1 MTPA alumina refinery 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.
4,924
5,873
First pari passu charge by way of hypothecation/ equitable mortgage on
the movable/ immovable assets of the aluminium division of the Company
comprising alumina refinery having output of 1 MTPA along with co-generation
captive power plant with an aggregate capacity of 90 MW at Lanjigarh, Orissa;
aluminium smelter having output of 1.6 MTPA along with a 1,215 (9*135) MW
CPP at Jharsuguda, Orissa and additional charge on Lanjigarh Expansion
project, both present and future.
468
780
Secured by a first pari passu charge on the identified fixed assets of the 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.
6,387
7,221
A first pari passu first charge by way of hypothecation on the Specified
movable fixed assets of the Company pertaining to its Manufacturing facilities
comprising:
(i) alumina refinery having output of 1 MTPA along with co-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.
942
1,137
A first pari passu charged by way of hypothecation on the specified movable
fixed assets (present and future) including movable plant and machinery,
machinery spares, tools and accessories, furniture and fixtures, 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) alumina refinery upto 6 MTPA along with cogeneration captive power plant
with aggregate capacity of 90 MW located in Lanjigarh, Odisha
(ii) alumina smelter output of 1.6 MTPA aluminium smelter including 1,215
(9*135) MW power plant in Jharsuguda, Odisha
(iii) 2,400 MW power plant (1,800 MW CPP and 600 MW IPP) located at
Jharsuguda, Odisha.
374
473
580
581
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(C in crore)
Facility Category
Security details
As at
31 March 2024
As at
31 March 2023
Term loans from banks
(includes rupee term
loans and foreign
currency term loans)
A first pari passu charge by way of mortgage/ hypothecation over the specified
movable fixed assets of the Company. 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) 1 MTPA alumina refinery along with 90 MW CPP at Lanjigarh, Odisha.
985
1,191
Secured by first pari passu charge by way of movable fixed assets of the
aluminium division of the Company comprising:
(i) 6 MTPA aluminium refinery along with 90 MW Co-generation captive
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 OLAP blocks
728
743
A first pari passu first charge by way of hypothecation on the specified
movable fixed assets of the Company pertaining to its Manufacturing facilities
comprising:
(i) 1.6 MTPA aluminium smelter along with 1,215 MW CPP at Jharsuguda and
(ii) 1 MTPA alumina refinery along with CPP of 90 MW at Lanjigarh, Odisha
470
490
A first pari passu charge by way of mortgage/ hypothecation over the specified
immovable and movable fixed assets of the Company. Security shall comprise
of 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) 1 MTPA Alumina refinery along with CPP of 90 MW CPP at Lanjigarh,
Odisha
814
927
A first pari passu charge by way of hypothecation on all present and future
movable
Fixed
Assets
including
movable
plant
and
machinery,
machinery spares, tools and accessories, furniture and fixtures, vehicles,
Capital Work-in-Progress etc of the Company with a minimum fixed
asset cover of 1.10 times as more particularly described as below:
(i) alumina refinery upto 6 MTPA along with co-generation CPP 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 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)
200
250
First pari passu charge by way of hypothecation on all present and future
movable fixed assets of the Company including but not limited to plant and
machinery, spares, tools and accessories of 1.6 MTPA aluminium smelter
along with 1,215 MW CPP at Jharsuguda, Odisha and 1 MTPA alumina refinery
along with 90 MW CPP at Lanjigarh, Odisha
423
683
First Pari-passu charge by way of hypothecation on all present and future
movable assets of the Company with a minimum fixed asset cover of 1.10
times of the outstanding facility comprising of -
(i) 6 MTPA alumina refinery along with 90 MW co-generation captive power
plant (operating capacity) in Lanjigarh, Odisha.
(ii) 1.6 MTPA aluminium smelter plant along with 1,215 MW (9*135 MW)
captive power plant in Jharsuguda, Odisha.
(iii) 2,400 MW Power Plant (1,800 MW CPP and 600 MW IPP) located at
Jharsuguda, Odisha.
(iv) Oil & Gas division comprising of RJ-ON-90/1 Oil & Gas Block (Rajasthan),
Cambay Oil Fields, Ravva Oil & Gas Fields (under PKGM-1 block) and OALP
blocks.
848
-
(C in crore)
Facility Category
Security details
As at
31 March 2024
As at
31 March 2023
Term loans from banks
(includes rupee term
loans and foreign
currency term loans)
Secondary charge by way of hypothecation on all present and future movable
assets of the Company comprising of -
(i) Aluminium business of the Company at its Jharsuguda Plant and Lanjigarh
Plant;
(ii) 2,400 MW power plant of the Company at Jharsuguda;
(iii) Copper Plant of the Company at Silvasa;
(iv) Iron ore business of the Company in the state of Goa; and
(v) Oil & Gas business of the Company in the states of Rajasthan, Gujarat,
Andhra Pradesh and OALP blocks.
Pledge of shares of HZL held by Company with a minimum coverage of
2.29X of the outstanding loan value.
1,091
-
Exclusive charge by way of hypothecation on all present and future movable
assets of the company comprising of -
(i) 400 KTPA Copper Smelter Plant along with 246 KTPA Refinery and Ancillary
Plants including 96 KTPA Copper Rod Plant, 1,300 KTPA Sulphuric Acid
plant and 230 KTPA Phosphoric Acid Plant at Tuticorin
(ii) 160 MW Thermal Power Plant (TPP) at Tuticorin.
Pledge of shares of HZL held by company with a minimum coverage of
2.2X of the oustanding loan value.
1,494
-
Total
40,199
35,544
d)
The loan facilities are subject to certain financial and non-financial covenants. The primary covenants which must be
complied with include interest service coverage ratio, current ratio, debt service coverage ratio, total outside liabilities to
total net worth, fixed assets coverage ratio, ratio of total term liabilities to net worth and debt/EBITDA. The Company has
complied with the covenants as per the terms of the loan agreement. (Refer note 2).
Further, in case of borrowings having current assets as security, the quarterly statements of current assets filed by the
Company with its lenders are in agreement with the books of accounts.
e)
Terms of repayment of total borrowings outstanding as at 31 March 2024 are provided below -
(C in crore)
Borrowings
Weighted
average
interest rate
as at 31
March 2024
Total
carrying
value
<1 year
1-3 years
3-5 years
>5 years
Remarks
Rupee term loan
9.41%
24,881
7,921
11,566
4,791
683
Repayable in 370 quarterly payments
Non-convertible debentures
10.76%
12,626
3,500
3,400
-
6,089
Repayable in 5 bullet payments
Working capital loan
9.55%
195
195
-
-
-
-
Deferred sales tax liability
NA
12
11
1
-
-
Repayable in 31 monthly payments
External commercial
borrowing
8.16%
2,917
867
1,717
350
-
Repayable in 30 half yearly payments
Redeemable preference
shares
NA
2
2
-
-
-
Unclaimed redemption amount due to
preference shareholders. Amount is
repayable on claim.
Loan from related party
16.00%
1,600
1,600
-
-
-
Repayable in 1 bullet payment
Total
42,232
14,096
16,684
5,141
6,772
The above maturity is based on the total principal outstanding, gross of issue expenses and discounting impact of deferred
sales tax liability.
582
583
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
f)
Terms of repayment of total borrowings outstanding as at 31 March 2023 are provided below -
(C in crore)
Borrowings
Weighted
average
interest rate
as at 31
March 2023
Total
carrying
value
<1 year
1-3 years
3-5 years
>5 years
Remarks
Rupee term loan
8.39%
26,921
5,436
10,589
9,832
1,168 Repayable in 466 quarterly payments
2 half yearly payments
Commercial paper
7.80%
489
489
-
-
- Repayable in 1 bullet payments
Non convertible debentures
8.77%
7,887
800
1,000
-
6,089 Repayable in 4 bullet payments
Working capital loan
7.58%
2,326
2,326
-
-
- This includes loans repayable on
demand from banks for C 2,256 crore
Deferred sales tax liability
NA
28
18
10
-
- Repayable in 43 monthly installments
External commercial
borrowing
7.42%
3,261
394
1,923
970
- Repayable in 35 half yearly payments
Redeemable preference
shares
NA
2
2
-
-
- Unclaimed redemption amount due to
preference shareholders. Amount is
repayable on claim.
Loan from Related Party
8.90%
1,109
-
-
-
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.
g)
Movement in borrowings during the year is provided below-
(C in crore)
Particulars
Short-term
borrowings
Long-term
borrowings*
Total debt
Opening balance at 01 April 2022
6,825
29,871
36,696
Cash flow
(3,565)
8,740
5,175
Other non-cash changes
55
97
152
As at 31 March 2023
3,315
38,708
42,023
Opening balance at 01 April 2023
3,315
38,708
42,023
Cash flow
(1,511)
2,800
1,289
Other non cash changes
(9)
(1,071)
(1,080)
As at 31 March 2024
1,795
40,437
42,232
*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 C 8,000 crore facility agreement with Union Bank of India Limited to take over a
long term syndicated facility of C 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 6.10% (31 March 2023: 6.77%) 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 2024, the outstanding loan amount under the facility is C 6,400 crore (31 March 2023:
C 7,240 crore).
18 Financial liabilities - Trade payables
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Undisputed dues – MSME
Unbilled dues
0
-
Not due
46
82
Less than 1 year
98
130
1-2 years
4
4
2-3 years
4
2
More than 3 years
0
-
Sub-total
152
218
Undisputed dues - Others
Unbilled dues
1,377
1,316
Not due
2,338
2,893
Less than 1 year
961
1,056
1-2 Years
72
90
2-3 years
62
23
More than 3 years
68
57
Sub-total
4,878
5,435
Disputed dues - Others
More than 3 years
-
1
Sub-total
-
1
Total
5,030
5,654
(a) Trade payables are non-interest bearing and are normally settled upto 180 days (31 March 2023: 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 4.85% to 8.43% (31 March 2023: 0.69% to 7.38%) per annum and in rupee from domestic
banks at interest rate ranging from 6.25% to 8.48% (31 March 2023: 4.35% to 8.80%) per annum. These trade credits are
largely repayable within 180 days from the date of draw down. Operational Buyers' credit availed in foreign currency is backed
by Standby Letter of Credit issued under working capital facilities sanctioned by domestic banks. Part of these facilities are
secured by first pari passu charge over the present and future current assets of the Company.
20 Financial liabilities - Others
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total Non-current
Current
Total
Liability for capital expenditure
-
7,147
7,147
-
7,082
7,082
Security deposits and retentions
-
38
38
-
39
39
Interest accrued but not due
-
451
451
-
445
445
Unpaid/unclaimed dividend a
-
128
128
-
114
114
Dividend payable
-
-
-
-
7,613
7,613
Unpaid matured deposits and interest accrued
thereon b
-
0
0
-
0
0
Profit petroleum payable
-
2,297
2,297
-
1,849
1,849
Dues to related parties (Refer note 39)
-
25
25
-
287
287
Other liabilities c
-
1,125
1,125
-
996
996
Total
-
11,211
11,211
-
18,425
18,425
584
585
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(a) Does not include any amounts, due and outstanding, to be credited to Investor Education and Protection Fund except
C 0.03 crore (31 March 2023: C 0.23 crore) which is held in abeyance due to a pending legal case.
(b) Matured deposits of C 0.00 crore (31 March 2023: C 0.01 crore) due for transfer to Investor Education and Protection Fund
have not been transferred in view of pending litigation between the beneficiaries.
(c)
Includes revenue received in excess of entitlement interest of C 238 crore (31 March 2023: C 239 crore) of which C 145
crore (31 March 2023: C 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 :
(C in crore)
At 01 April 2022
82
Additions during the year
29
Interest on lease liabilities
6
Payments made*
(22)
FCTR and other adjustments
2
At 01 April 2023
97
Additions during the year
314
Interest on lease liabilities
21
Payments made*
(62)
FCTR and other adjustments
(27)
At 31 March 2024
343
*Includes payment of interest on lease liabilities of C 21 crore (31 March 2023: C 6 crore)
22 Financial instruments
A.
Financial assets and liabilities:
The accounting classification of each category of financial instruments, and their carrying amounts, are set out below:
As at 31 March 2024
(C in crore)
Financial Assets
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
Investments*
448
64
-
-
512
512
Trade receivables
110
-
-
2,427
2,537
2,537
Cash and cash equivalents
-
-
-
1,488
1,488
1,488
Other bank balances
-
-
-
654
654
654
Loans
-
-
-
1,744
1,744
1,744
Derivatives
41
-
93
-
134
134
Other financial assets
-
-
-
11,349
11,349
11,349
Total
599
64
93
17,662
18,418
18,418
(C in crore)
Financial Liabilities
Fair value
through profit
or loss
Derivatives
designated
as hedging
instruments
Amortised
cost
Total
carrying value
Total fair
value
Borrowings
-
-
42,232
42,232
42,487
Trade payables
544
-
4,486
5,030
5,030
Operational buyers' credit / suppliers' credit
-
-
12,072
12,072
12,072
Derivatives
21
52
-
73
73
Other financial liabilities**
-
-
11,554
11,554
11,554
Total
565
52
70,344
70,961
71,216
As at 31 March 2023
(C in crore)
Financial Assets
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
Investments*
1,885
81
-
-
1,966
1,966
Trade receivables
171
-
-
2,370
2,541
2,541
Cash and cash equivalents
-
-
-
5,147
5,147
5,147
Other bank balances
-
-
-
318
318
318
Loans
-
-
-
633
633
633
Derivatives
19
-
79
-
98
98
Other financial assets***
-
-
-
9,354
9,354
9,354
Total
2,075
81
79
17,822
20,057
20,057
(C in crore)
Financial Liabilities
Fair value
through profit
or loss
Derivatives
designated
as hedging
instruments
Amortised
cost
Total
carrying value
Total fair
value
Borrowings
-
-
42,023
42,023
41,974
Trade payables
899
-
4,755
5,654
5,654
Operational buyers' credit / suppliers' credit
-
-
10,485
10,485
10,485
Derivatives
67
104
-
171
171
Other financial liabilities**
-
-
18,522
18,522
18,522
Total
966
104
75,785
76,855
76,806
* 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 C 343 crore (31 March 2023: C 97 crore).
*** Restated, refer note 3(d)(i)
B.
Fair value hierarchy
The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by
valuation techniques:
(i)
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
(ii)
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e., derived from prices).
(iii) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
586
587
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
The below table summarises the categories of financial assets and liabilities as at 31 March 2024 and 31 March 2023
measured at fair value:
As at 31 March 2024
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
At fair value through profit or loss
- Investments
256
-
192
- Derivative financial assets*
-
41
-
- Trade receivables
-
110
-
At fair value through other comprehensive income
- Investments
53
-
11
Derivatives designated as hedging instruments
- Derivative financial assets*
-
93
-
Total
309
244
203
(C in crore)
Financial liabilities
Level 1
Level 2
Level 3
At fair value through profit or loss
- Derivative financial liabilities*
-
21
-
- Trade payables
-
544
-
Derivatives designated as hedging instruments
-Derivative financial liabilities*
-
52
-
Total
-
617
-
As at 31 March 2023
(C in crore)
Financial Assets
Level 1
Level 2
Level 3
At fair value through profit or loss
- Investments
1,786
-
99
- Derivative financial assets*
-
19
-
- Trade receivables
-
171
-
At fair value through other comprehensive income
- Investments
70
-
11
Derivatives designated as hedging instruments
- Derivative financial assets*
-
79
-
Total
1,856
269
110
(C in crore)
Financial liabilities
Level 1
Level 2
Level 3
At fair value through profit or loss
-Derivative financial liabilities*
-
67
-
-Trade payables
-
899
-
Derivatives designated as hedging instruments
-Derivative financial liabilities*
-
104
-
Total
-
1,070
-
Reconciliation of Level 3 fair value measurement
(C in crore)
At 01 April 2022
41
Investments made during the year
69
At 01 April 2023
110
Investments made during the year
101
Investments redeemed during the year
(8)
At 31 March 2024
203
* Refer “D” below.
The below table summarises the fair value of borrowings which are carried at amortised cost as at 31 March 2024 and
31 March 2023:
As at 31 March 2024
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
Borrowings
-
42,487
-
Total
-
42,487
-
As at 31 March 2023
(C in crore)
Financial Liabilities
Level 1
Level 2
Level 3
Borrowings
-
41,974
-
Total
-
41,974
-
The fair value of the financial assets and liabilities are at the amount that would be received to sell an asset and paid to
transfer a liability in an orderly transaction between market participants at the measurement date. The following methods
and assumptions were used to estimate the fair values:
Investments traded in active markets are determined by reference to quoted prices in an active market in case of listed
securities and by quotes from the financial institutions; for example: Net asset value (NAV) for investments in mutual funds
declared by mutual fund house. For other listed securities traded in markets which are not active, the quoted price is used
wherever the pricing mechanism is same as for other marketable securities traded in active markets. Other investments,
inputs for which are not based on observable market data (unobservable inputs), are valued on the basis of net assets
value method.
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).
Trade receivables, cash and cash equivalents, other bank balances, loans, other financial assets, current borrowings, trade
payables and other current financial liabilities: Fair values approximate their carrying amounts largely due to the short-
term maturities of these instruments.
Non-current fixed-rate and variable-rate borrowings: Fair value has been determined using discounted cash flow
model based on parameters such as interest rates, specific country risk factors, and the risk characteristics of the
financed project.
Other non-current financial assets and liabilities: Fair value is calculated using a discounted cash flow model with market
assumptions, unless the carrying value is considered to approximate to fair value.
Derivative financial assets/ liabilities: The Company executes derivative financial instruments with various counterparties.
Interest rate swaps, foreign exchange forward contracts and commodity forward contracts are valued using valuation
588
589
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include
the forward pricing and swap models, using present value calculations. The models incorporate various inputs including
foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the
respective currencies, interest rate curves and forward rate curves of the underlying commodity. Commodity contracts
are valued using the forward LME rates of commodities actively traded on the listed metal exchange, i.e., London Metal
Exchange, United Kingdom (U.K.).
For all other financial instruments, the carrying amount is either the fair value, or approximates the fair value.
The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives
designated in hedge relationship and the value of other financial instruments recognised at fair value.
The estimated fair value amounts as at 31 March 2024 and 31 March 2023 have been measured as at that date. As such,
the fair values of these financial instruments subsequent to reporting date may be different than the amounts reported at
each year-end.
There are no transfers between Level 1, Level 2 and Level 3 during the year.
C
Risk management framework
The Company’s businesses are subject to several risks and uncertainties including financial risks.
The Company’s documented risk management policies act as an effective tool in mitigating the various financial risks
to which the businesses are exposed in the course of their daily operations. The risk management policies cover areas
such as liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty credit risk and capital
management. Risks are identified at both the corporate and individual subsidiary level with active involvement of senior
management. Each operating subsidiary in the Company has in place risk management processes which are in line with
the Company’s policy. Each significant risk has a designated ‘owner’ within the Company at an appropriate senior level.
The potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.
The risk management process is coordinated by the Management Assurance function and is regularly reviewed by the
Company’s Audit 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 overall
internal control environment and risk management programme including financial risk management is reviewed by the
Audit Committee on behalf of the Board.
The risk management framework aims to:
- improve financial risk awareness and risk transparency
- identify, control and monitor key risks
- identify risk accumulations
- provide management with reliable information on the Company’s risk situation
- improve financial returns
Treasury management
Treasury management focuses on liability management, capital protection, liquidity maintenance and yield maximisation.
The treasury policies are approved by the Committee of the Board. Daily treasury operations of the business units are
managed by their respective finance teams within the framework of the overall Group treasury policies. Long-term fund
raising including strategic treasury initiatives are managed jointly by the business treasury team and the central team at
corporate treasury while short-term funding for routine working capital requirements is delegated to business units. A
monthly reporting system exists to inform senior management of the Company’s investments and debt position, exposure
to currency, commodity and interest rate risk and their mitigants including the derivative position. The Company has a
strong system of internal control which enables effective monitoring of adherence to Company’s policies. The internal
control measures are effectively supplemented by regular internal audits.
The Company uses derivative instruments to manage the exposure in foreign currency exchange rates, interest rates
and commodity prices. The Company does not acquire or issue derivative financial instruments for trading or speculative
purposes. The Company does not enter into complex derivative transactions to manage the treasury and commodity risks.
Both treasury and commodities derivative transactions are normally in the form of forward contracts, interest rate and
currency swaps and these are in line with the Company's policies.
Commodity price risk
The Company is exposed to the movement of base metal commodity prices on the London Metal Exchange. Any decline
in the prices of the base metals that the Company produces and sells will have an immediate and direct impact on the
profitability of the businesses. As a general policy, the Company aims to sell the products at prevailing market prices.
The commodity price risk in imported input commodity such as of alumina, anodes, etc., for our aluminium and copper
business respectively, is hedged on back-to-back basis ensuring no price risk for the business. Hedging is used primarily
as a risk management tool and, in some cases, to secure future cash flows in cases of high volatility by entering into
forward contracts or similar instruments. The hedging activities are subject to strict limits set out by the Board and to a
strictly defined internal control and monitoring mechanism. Decisions relating to hedging of commodities are taken at the
Executive Committee level, basis clearly laid down guidelines.
Whilst the Company aims to achieve average LME prices for a month or a year, average realised prices may not
necessarily reflect the LME price movements because of a variety of reasons such as uneven sales during the year and
timing of shipments.
The Company is also exposed to the movement of international crude oil price and the discount in the price of Rajasthan
crude oil to Brent price.
Financial instruments with commodity price risk are entered into in relation to following activities:
•
economic hedging of prices realised on commodity contracts
•
cash flow hedging of revenues, forecasted highly probable transactions
Aluminium
The requirement of the primary raw material, alumina, is partly met from own sources and the rest is purchased primarily
on negotiated price terms. Sales prices are linked to the LME prices. At present, the Company, on selective basis hedges
the aluminium content in outsourced alumina to protect its margins. The Company also executes hedging arrangements
for its aluminium sales to realise average month of sale LME prices.
Copper
The Company’s custom refining copper operations at Silvassa is benefitted by a natural hedge except to the extent of
a possible mismatch in quotational periods between the purchase of anodes / blisters and the sale of finished copper.
The Company’s policy on custom smelting is to generate margins from Refining Charges or "RC”, improving operational
efficiencies, minimising conversion cost, generating a premium over LME on sale of finished copper, sale of by-products
and from achieving import parity on domestic sales. Hence, mismatches in quotational periods are managed to ensure
that the gains or losses are minimised. The Company hedges this variability of LME prices through forward contracts and
tries to make the LME price a pass-through cost between purchases of anodes/ blisters and sales of finished products,
both of which are linked to the LME price.
RCs are a major source of income for the Indian copper refining operations. Fluctuations in RCs are influenced by factors
including demand and supply conditions prevailing in the market for smelters output. The Company’s copper business has
a strategy of securing a majority of its anodes/ blisters feed requirement under long-term contracts with smelters/ traders.
Iron ore
The Company sells its Iron Ore production from Goa on the prevailing market prices and from Karnataka through e-auction
route as mandated by State Government of Karnataka in India.
590
591
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
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 natural
gas. This could be owing to difficulties in large-scale transportation over long distances as compared to crude oil. Globally,
there are three main regional hubs for pricing of natural gas, which are USA (Henry Hub Prices), UK (NBP Price) and Japan
(imported gas price, mostly linked to crude oil).
Provisionally priced financial instruments
On 31 March 2024, the value of net financial liabilities linked to commodities (excluding derivatives) accounted for on
provisional prices was C 434 crore (31 March 2023: liabilities of C 728 crore). These instruments are subject to price
movements at the time of final settlement and the final price of these instruments will be determined in the financial year
beginning 01 April 2024.
Set out below is the impact of 10% increase in LME prices on pre-tax profit/ (loss) for the year and pre-tax total equity as a
result of changes in value of the Company’s commodity financial instruments:
For the year ended 31 March 2024
(C in crore)
Total Exposure
Effect on profit/
(loss) of a 10%
increase in the
LME
Effect on total
equity of a 10%
increase in the
LME
Copper
(504)
(50)
-
For the year ended 31 March 2023
(C in crore)
Total Exposure
Effect on profit/
(loss) of a 10%
increase in the
LME
Effect on total
equity of a 10%
increase in the
LME
Copper
(967)
(97)
-
The above sensitivities are based on volumes, costs, exchange rates and other variables and provide the estimated impact
of a change in LME prices on profit and equity assuming that all other variables remain constant. A 10% decrease in LME
prices would have an equal and opposite effect on the Company’s financial statements.
The impact on pre-tax profit/ (loss) mentioned above includes the impact of a 10% increase in closing copper LME for
provisionally priced copper concentrate purchased at Copper division custom smelting operations in India of C 89 crore
loss (31 March 2023: C 129 crore loss), which is pass through in nature and as such will not have any impact on
the profitability.
Financial risk
The Company’s Board approved financial risk policies include monitoring, measuring and mitigating the liquidity, currency,
interest rate and counterparty risk. The Company does not engage in speculative treasury activity but seeks to manage
risk and optimise interest and commodity pricing through proven financial instruments.
(a) Liquidity
The Company requires funds both for short-term operational needs as well as for long-term investment programmes
mainly in growth projects. The Company generates sufficient cash flows from the current operations which together
with the available cash and cash equivalents and short-term investments provide liquidity both in the short-term as
well as in the long-term. The Company has been rated by CRISIL Limited (CRISIL) and India Ratings and Research
Private Limited (India Rating) for its capital market issuance in the form of CPs and NCDs and for its banking facilities
in line with Basel II norms.
During FY 2024, CRISIL Ratings has downgraded its rating on the long-term bank facilities and debt instruments of
the Company from ‘CRISIL AA’ to 'CRISIL AA-' while the rating on short-term facilities and commercial paper has
been reaffirmed at 'CRISIL A1+'. The ratings have also been placed on Watch with Developing Implications.
During FY 2024, India Ratings has downgraded the Company’s rating on the long-term instruments from ‘IND AA’ to
‘IND A+’ and on short-term facilities and commercial paper from ‘IND A1+’ to ‘IND A1’. The ratings have also been
placed on Watch with Developing Implications.
The ratings downgrade is driven by higher than expected leverage and increase in borrowing costs. However,
they expect reduced refinancing risk for Vedanta Resources Limited to support the Company’s financial flexibility,
with improved access and cost of borrowing from the banks and capital markets. The Rating Watch is due to the
demerger announcement of the company as clarity on allocation of assets and liabilities and it’s probable impact on
liquidity of the company is awaited by the rating agencies.
Anticipated future cash flows, together with undrawn fund based committed facilities of C 480 crore, and cash, bank
and short term investments of C 2,384 crore as at 31 March 2024, are expected to be sufficient to meet the liquidity
requirement of the Company in the near future.
The Company remains committed to maintaining a healthy liquidity, a low gearing ratio, deleveraging and
strengthening its balance sheet. The maturity profile of the Company’s financial liabilities based on the remaining
period from the date of balance sheet to the contractual maturity date is given in the table below. The figures reflect
the contractual undiscounted cash obligation of the Company.
As at 31 March 2024
(C in crore)
Payments due by year
<1 year
1-3 years
3-5 years
>5 years
Total
Borrowings *
24,118
14,129
11,334
18,465
68,046
Derivative financial liabilities
73
-
-
-
73
Lease liabilities
131
128
52
32
343
Trade Payables and other
financial liabilities **
28,115
-
-
-
28,115
Total
52,437
14,257
11,386
18,497
96,577
As at 31 March 2023
(C in crore)
Payments due by year
<1 year
1-3 years
3-5 years
>5 years
Total
Borrowings *
12,955
17,650
13,063
10,690
54,358
Derivative financial liabilities
151
20
-
-
171
Lease liabilities
46
19
3
29
97
Trade Payables and other
financial liabilities **
34,266
-
-
-
34,266
Total
47,418
17,689
13,066
10,719
88,892
*Includes non-current borrowings, current borrowings, committed interest payments on borrowings and interest accrued on
borrowings.
**Includes both non-current and current financial liabilities and committed interest payment, as applicable. Excludes interest accrued
on borrowings.
592
593
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
The Company had access to following funding facilities :
As at 31 March 2024
(C in crore)
Funding facilities
Total Facility
Drawn
Undrawn
Fund/non-fund based
52,021
47,544
4,477
As at 31 March 2023
(C in crore)
Funding facilities
Total Facility
Drawn
Undrawn
Fund/non-fund based
58,039
52,754
5,285
(b) Foreign exchange risk
Fluctuations in foreign currency exchange rates may have an impact on the statement of profit and loss, the
statement of changes in equity, where any transaction references more than one currency or where assets/liabilities
are denominated in a currency other than the functional currency of the Company.
Exposures on foreign currency loans are managed through the Company wide hedging policy, which is reviewed
periodically to ensure that the results from fluctuating currency exchange rates are appropriately managed. The
Company strives to achieve asset liability offset of foreign currency exposures and only the net position is hedged.
The Company’s presentation currency is the Indian Rupee (INR). The assets are located in India and the Indian Rupee
is the functional currency except for Oil and Gas business operations which have a dual functional currency. Natural
hedges available in the business are identified at each entity level and hedges are placed only for the net exposure.
Short-term net exposures are hedged progressively based on their maturity. A more conservative approach has been
adopted for project expenditures to avoid budget overruns, where cost of the project is calculated taking into account
the hedge cost. The hedge mechanisms are reviewed periodically to ensure that the risk from fluctuating currency
exchange rates is appropriately managed.
The following analysis is based on the gross exposure as at the reporting date which could affect the statement
of profit and loss. The exposure is mitigated by some of the derivative contracts entered into by the Company as
disclosed under the section on “Derivative financial instruments”.
The carrying amount of the Company's financial assets and liabilities in different currencies are as follows:
(C in crore)
Currency
As at 31 March 2024
As at 31 March 20223
Financial
Assets
Financial
liabilities
Financial
Assets*
Financial
liabilities
INR
10,614
50,559
15,739
53,560
USD
7,518
19,736
4,033
22,876
Others
286
666
285
419
Total
18,418
70,961
20,057
76,855
* Restated, refer note 3(d)(i)
The Company’s exposure to foreign currency arises where an entity holds monetary assets and liabilities
denominated in a currency different to the functional currency of the respective business, with US dollar being the
major non-functional currency.
The foreign exchange rate sensitivity is calculated by the aggregation of the net foreign exchange rate exposure with
a simultaneous parallel foreign exchange rates shift in the foreign currencies by 10% against the functional currency
of the respective businesses.
Set out below is the impact of a 10% strengthening in the functional currencies of the respective businesses on pre-
tax profit/ (loss) and pre-tax equity arising as a result of the revaluation of the Company’s foreign currency monetary
financial assets/ liabilities:
For the year ended 31 March 2024
(C in crore)
Effect of 10%
strengthening
of functional
currency on
pre-tax
profit/ (loss)
Effect of 10%
strengthening of
foreign currency
on equity
USD
1,022
-
INR
(224)
-
For the year ended 31 March 2023
(C in crore)
Effect of 10%
strengthening
of functional
currency on
pre-tax
profit/ (loss)
Effect of 10%
strengthening of
foreign currency
on equity
USD
1,438
-
INR
(456)
-
A 10% weakening of functional currencies of the respective businesses would have an equal and opposite effect on
the Company’s financial statements.
(c) Interest rate risk
At 31 March 2024, the Company’s net debt of C 39,848 crore (31 March 2023: C 34,659 crore) comprises debt of
C 42,232 crore (31 March 2023: C 42,023 crore) offset by cash, bank and short term investments of C 2,384 crore
(31 March 2023: C 7,364 crore).
The Company is exposed to interest rate risk on short-term and long-term floating rate instruments and on the
refinancing of fixed rate debt. The Company’s policy is to maintain a balance of fixed and floating interest rate
borrowings and the proportion of fixed and floating rate debt is determined by current market interest rates. The
borrowings of the Company are principally denominated in Indian Rupees and US dollars with mix of fixed and
floating rates of interest. The USD floating rate debt is linked to US dollar LIBOR and INR Floating rate debt to Bank’s
base rate. The Company has a policy of selectively using interest rate swaps, option contracts and other derivative
instruments to manage its exposure to interest rate movements. These exposures are reviewed by appropriate levels
of management on a monthly basis. The Company invests cash and liquid investments in short-term deposits and
debt mutual funds, some of which generate a tax-free return, to achieve the Company’s goal of maintaining liquidity,
carrying manageable risk and achieving satisfactory returns.
Floating rate financial assets are largely mutual fund investments which have debt securities as underlying assets.
The returns from these financial assets are linked to market interest rate movements; however the counterparty
invests in the agreed securities with known maturity tenure and return and hence has manageable risk.
594
595
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
The exposure of the Company’s financial assets as at 31 March 2024 to interest rate risk is as follows:
(C in crore)
As at 31 March 2024
Total
Floating rate
Financial assets
Fixed rate
financial assets
Non-interest
bearing financial
assets
Financial Assets
18,418
256
4,229
13,933
The exposure of the Company’s financial liabilities as at 31 March 2023 to interest rate risk is as follows:
(C in crore)
As at 31 March 2024
Total
Floating rate
Financial
liabilities
Fixed rate
financial
liabilities
Non-interest
bearing financial
liabilities
Financial Liabilities
70,961
31,359
23,139
16,463
The exposure of the Company’s financial assets as at 31 March 2023 to interest rate risk is as follows:
(C in crore)
As at 31 March 2023
Total
Floating rate
Financial assets
Fixed rate
financial assets
Non-interest
bearing financial
assets
Financial Assets*
20,057
1,786
2,317
15,954
The exposure of the Company’s financial liabilities as at 31 March 2023 to interest rate risk is as follows:
(C in crore)
As at 31 March 2023
Total
Floating rate
Financial
liabilities
Fixed rate
financial
liabilities
Non-interest
bearing financial
liabilities
Financial Liabilities
76,855
30,982
21,568
24,305
* Restated, refer note 3(d)(i)
Considering the net debt position as at 31 March 2024 and the investment in bank deposits, corporate bonds and
debt mutual funds, any increase in interest rates would result in a net loss and any decrease in interest rates would
result in a net gain. The sensitivity analysis below has been determined based on the exposure to interest rates for
financial instruments at the balance sheet date.
The table below illustrates the impact of a 0.5% to 2.0% movement in interest rates on floating rate financial
assets/ liabilities (net) on profit/ (loss) and equity assuming that the changes occur at the reporting date and has
been calculated based on risk exposure outstanding as of that date. The year-end balances are not necessarily
representative of the average debt outstanding during the year. This analysis also assumes that all other variables, in
particular foreign currency rates, remain constant.
(C in crore)
Increase in interest rates
Effect on pre-tax
profit/(loss)
during the year
ended 31 March
2024
Effect on pre-tax
profit/(loss)
during the year
ended 31 March
2023
0.50%
(156)
(146)
1.00%
(312)
(292)
2.00%
(624)
(584)
An equivalent reduction in interest rates would have an equal and opposite effect on the Company’s financial statements.
(d) Counterparty and concentration of credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to
the Company. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining
sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.
The Company is exposed to credit risk from trade receivables, contract assets, investments, loans, other financial
assets, and derivative financial instruments.
Credit risk on receivables is limited as almost all credit sales are against letters of credit and guarantees of banks of
national standing.
Moreover, given the diverse nature of the Company’s businesses trade receivables are spread over a number of
customers with no significant concentration of credit risk. The history of trade receivables shows a negligible
provision for bad and doubtful debts. Therefore, the Company does not expect any material risk on account of non-
performance by any of the Company’s counterparties.
The Company has clearly defined policies to mitigate counterparty risks. For current investments, counterparty limits
are in place to limit the amount of credit exposure to any one counterparty. This, therefore, results in diversification of
credit risk for our mutual fund and bond investments. For derivative and financial instruments, the Company attempts
to limit the credit risk by only dealing with reputable banks and financial institutions.
The carrying value of the financial assets represents the maximum credit exposure. The Company’s maximum
exposure to credit risk is C 18,417 crore and C 20,057 crore as at 31 March 2024 and 31 March 2023 respectively.
The maximum credit exposure on financial guarantees given by the Company for various financial facilities is
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
trade receivables, loans and other financial assets (both current and non-current), there were no indications as at
the year end, that defaults in payment obligations will occur except as described in Notes 7, 8 and 9 on allowance for
impairment of trade receivables, loans and other financial assets.
Of the year end trade receivables, loans and other financial assets (excluding bank deposits, site restoration fund and
derivatives) balance the following, though overdue, are expected to be realised in the normal course of business and
hence, are not considered impaired as at 31 March 2024 and 31 March 2023:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Neither impaired nor past due *
8,827
8,282
Past due but not impaired
- Less than 1 month
860
627
- Between 1–3 months
228
135
- Between 3–12 months
1,617
80
- Greater than 12 months
2,600
2,182
Total
14,133
11,306
* Restated, refer note 3(d)(i)
Receivables are deemed to be past due or impaired with reference to the Company’s normal terms and conditions of
business. These terms and conditions are determined on a case to case basis with reference to the customer’s credit
quality and prevailing market conditions. Receivables that are classified as ‘past due’ in the above tables are those
that have not been settled within the terms and conditions that have been agreed with that customer. The Company
based on past experiences does not expect any material loss on its receivables.
The credit quality of the Company’s customers is monitored on an ongoing basis. Where receivables have been
impaired, the Company actively seeks to recover the amounts in question and enforce compliance with credit terms.
596
597
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Movement in allowances for Financial Assets (Trade receivables, loans and financial assets - others)
The changes in the allowance for financial assets (current and non-current) is as follows:
(C in crore)
Particulars
Trade
receivables
Financial assets
- others
Financial assets
- loans
As at 01 April 2022
1,001
747
5
Allowance made during the year
355
-
-
Reversals/ write-off during the year
-
(95)
-
Exchange differences
-
30
-
As at 31 March 2023
1,356
682
5
Allowance made during the year
222
205
-
Reversals/ write-off during the year
(547)
-
-
Exchange differences
-
6
-
As at 31 March 2024
1,031
893
5
D.
Derivative financial instruments
The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency
exchange rates, interest rates and commodity prices. The Company does not acquire or issue derivative financial
instruments for trading or speculative purposes. The Company does not enter into complex derivative transactions to
manage the treasury and commodity risks. Both treasury and commodities derivative transactions are normally in the
form of forward contracts and these are subject to the Company guidelines and policies.
The fair values of all derivatives are separately recorded in the balance sheet within current and non-current assets and
liabilities. Derivatives that are designated as hedges are classified as current or non-current depending on the maturity of
the derivative.
The use of derivatives can give rise to credit and market risk. The Company tries to control credit risk as far as possible
by only entering into contracts with reputable banks and financial institutions. The use of derivative instruments is
subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and
monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated
by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk
management purposes.
(i) Cash flow hedges
The Company enters into forward exchange and commodity price contracts for hedging highly probable forecast
transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair
value are recognised in equity through OCI until the hedged transaction occurs, at which time, the respective gain or
losses are reclassified to profit or loss. These hedges have been effective for the year ended 31 March 2024.
The Company uses foreign exchange contracts from time to time to optimise currency risk exposure on its foreign
currency transactions. The Company hedged part of its foreign currency exposure on capital commitments during
the year ended 2023. Fair value changes on such forward contracts are recognised 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 2025 and consequently may
impact profit or loss for that year depending upon the change in the commodity prices and foreign exchange rates
movements. For cash flow hedges regarded as basis adjustments to initial carrying value of the property, plant and
equipment, the depreciation on the basis adjustments made is expected to affect profit or loss over the expected
useful life of the property, plant and equipment.
(ii) Fair value hedge
The fair value hedges relate to forward covers taken to hedge currency exposure and commodity price risks.
The Company’s sales are on a quotational period basis, generally one month to three months after the date of
delivery at a customer’s facility. The Company enters into forward contracts for the respective quotational period
to hedge its commodity price risk based on average LME prices. Gains and losses on these hedge transactions are
substantially offset by the amount of gains or losses on the underlying sales. Net gains and losses are recognised in
the statement of profit and loss.
The Company uses foreign exchange contracts from time to time to optimise currency risk exposure on its foreign
currency transactions. Fair value changes on such forward contracts are recognised in the statement of profit
and loss.
(iii) Non- designated economic hedge
The Company enters into derivative contracts which are not designated as hedges for accounting purposes, but
provide an economic hedge of a particular transaction risk or a risk component of a transaction. Hedging instruments
include copper, aluminium future contracts on the LME and certain other derivative instruments. Fair value changes
on such derivative instruments are recognised in the statement of profit and loss.
The fair value of the Company’s derivative positions recorded under derivative financial assets and derivative financial
liabilities are as follows:
(C in crore)
Derivative Financial Instruments
As at 31 March 2024
As at 31 March 2023
Assets
Liabilities
Assets
Liabilities
Current
Cash flow hedge*
- Commodity contracts
-
-
30
-
Fair Value hedge
- Commodity contracts
86
39
45
69
- Forward foreign currency contracts
4
13
4
15
Non - qualifying hedges/economic hedge
- Commodity contracts
32
-
-
-
- Forward foreign currency contracts
9
21
19
67
Sub-total (A)
131
73
98
151
Non-current
Fair value hedge
- Forward foreign currency contracts
3
-
-
20
Sub-total (B)
3
-
-
20
Total (A+B)
134
73
98
171
* Refer statement of profit and loss and statement of changes in equity for the changes in the fair value of cash flow hedges.
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 :
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Forex forward cover (buy)
12,827
9,679
Forex forward cover (sell)
167
0
Interest rate swap
2,917
3,261
Total
15,911
12,940
598
599
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(ii)
For hedging commodity related risks :- Category wise break up is given below.
Particulars
As at 31 March 2024
As at 31 March 2023
Purchases
Sales
Purchases
Sales
Forwards/ Futures
Copper (MT)
900
4,925
5,550
11,775
Gold (Oz)
-
572
-
16,940
Silver (Oz)
49,013
2,24,424
13,987
68,455
Aluminium (MT)
2,05,700
1,35,125
63,100
2,750
23 Other liabilities
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total
Non-current
Current
Total
Amount payable to owned post-employment
benefit trust
-
15
15
-
14
14
Other statutory liabilities a
-
840
840
-
931
931
Deferred government grant b
2,302
83
2,385
2,364
83
2,447
Advance from customers c
827
5,718
6,545
-
8,074
8,074
Advance from related party (Refer note 39) c
-
119
119
-
3
3
Other liabilities
-
167
167
-
120
120
Total
3,129
6,942
10,071
2,364
9,225
11,589
(a) Other statutory liabilities mainly include payable for PF, ESIC, withholding taxes, goods and service tax, VAT, etc.
(b) Represents government assistance in the form of the duty benefit availed under Export Promotion Capital Goods (EPCG)
Scheme and Special Economic Zone (SEZ) scheme on purchase of property, plant and equipment accounted for as
government grant and being amortised over the useful life of such assets.
(c)
Advance from customers includes contract liabilities to be settled through delivery of goods. The amount of such
balances as on 01 April 2022 was C 3,563 crore. During the current year, the Company has recognised revenue of C 8,068
crore (31 March 2023: C 3,511 crore) out of opening balances. All other changes are either due to receipt of fresh advances
or exchange differences.
24 Provisions
(C in crore)
Particulars
As at 31 March 2024
As at 31 March 2023
Non-current
Current
Total Non-current
Current
Total
Provision for employee benefits (Refer note 25) a
- Retirement Benefit
73
33
106
61
32
93
- Others
-
100
100
-
93
93
Provision for restoration, rehabilitation and
environmental costs b,c
1,240
4
1,244
1,312
4
1,316
Total
1,313
137
1,450
1,373
129
1,502
a)
Provision for employee benefits includes gratuity, compensated absences, deferred cash bonus, etc.
b)
The movement in provisions for restoration, rehabilitation and environmental costs is as follows [Refer note 3(a)(O)]:
(C in crore)
Particulars
Restoration,
rehabilitation and
environmental
costs (Refer c)
At 01 April 2022
1,270
Additions
41
Amounts used
(1)
Unwinding of discount (Refer note 32)
30
Revision in estimates
(131)
Exchange differences
107
At 01 April 2023
1,316
Additions
5
Amounts used
(11)
Unwinding of discount (Refer note 32)
51
Revision in estimates
(136)
Exchange differences
19
At 31 March 2024
1,244
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
exists relating to the oil and gas fields, where costs are expected to be incurred in restoring the site of production facilities
at the end of the producing life of an oil field. The Company recognises the full cost of site restoration as a liability when
the obligation to rectify environmental damage arises.
These amounts are calculated by considering discount rates within the range of 2% to 3%, and become payable at the end
of the producing life of an oil field and are expected to be incurred over a period of twenty one years.
An obligation to incur restoration, rehabilitation and environmental costs arises when environmental disturbance is caused
by the development or ongoing production from a producing field.
25 Employee Benefit Plans
The Company participates in defined contribution and benefit plans, the assets of which are held (where funded) in
separately administered funds.
For defined contribution plans, the amount charged to the statement of profit and loss is the total amount of contributions
payable in the year.
For defined benefit plans, the cost of providing benefits under the plans is determined by actuarial valuation separately
each year for each plan using the projected unit credit method by independent qualified actuaries as at the year end.
Remeasurement gains and losses arising in the year are recognised in full in other comprehensive income for the year.
600
601
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
i)
Defined contribution plans
The Company contributed a total of C 75 crore for the year ended 31 March 2024 and C 66 crore for the year ended
31 March 2023 to the following defined contribution plans.
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Employer’s contribution to recognised provident fund and family pension fund
52
49
Employer’s contribution to superannuation
17
13
Employer's contribution to National Pension Scheme (NPS)
6
4
Total
75
66
Central recognised provident fund
In accordance with the Employees' Provident Funds and Miscellaneous Provisions Act ,1952, employees are entitled to
receive benefits under the Provident Fund. Both the employee and the employer make monthly contributions to the plan at
a predetermined rate (12% for the year ended 31 March 2024 and 12% for the year ended 31 March 2023) 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 charged to the statement of profit and
loss in the year they are incurred.
Family pension fund
The Pension Fund was established in 1995 and is managed by the Government of India. The employee makes no
contribution to this fund but the employer makes a contribution of 8.33% of salary each month subject to a specified
ceiling per employee (included in the 12% rate specified above). This is provided for every permanent employee on
the payroll.
At the age of superannuation, contributions ceases and the individual receives a monthly payment based on the level of
contributions through the years, and on their salary scale at the time they retire, subject to a maximum ceiling of salary
level. The Government funds these payments, thus the Company has no additional liability beyond the contributions that it
makes, regardless of whether the central fund is in surplus or deficit.
Superannuation
Superannuation, another pension scheme applicable in India, is applicable only to senior executives. The Company holds
a policy with Life Insurance Corporation of India (“LIC”), to which it contributes a fixed amount relating to superannuation
and the pension annuity is met by LIC as required, taking into consideration the contributions made. The Company has no
further obligations under the scheme beyond its monthly contributions which are charged to the statement of profit and
loss in the year they are incurred.
National Pension Scheme
National Pension Scheme is a retirement savings account for social security and welfare applicable for executives
covered under the superannuation benefit of Vedanta Limited, on a choice basis. It was introduced to enable employees
to select the treatment of superannuation component of their fixed salaries and avail the benefits offered by National
Pension Scheme launched by Government of India. Vedanta Limited holds a corporate account with one of the pension
fund managers authorised by the Government of India to which the Company contributes a fixed amount relating to
superannuation and the pension annuity will be met by the fund manager as per rules of National Pension Scheme.
The Company has no further obligations under the scheme beyond its monthly contributions which are charged to the
statement of profit and loss in the year they are incurred.
ii)
Defined benefit plans
(a) Contribution to provident fund trust (the "trust")
The provident fund of the Iron Ore division is exempted under Section 17 of the Employees' Provident Funds and
Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulates that the employer shall make good
deficiency, if any, between the return guaranteed by the statute and actual earning of the Fund. Based on actuarial
valuation in accordance with Ind AS 19 and 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 2024 and 31 March 2023. Having regard to the assets of the Fund and the return on the investments, the
Company does not expect any deficiencies in the foreseeable future.
The Company contributed a total of C 13 crore for the year ended 31 March 2024 and C 8 crore for the year ended
31 March 2023. The present value of obligation and the fair value of plan assets of the trust are summarised below.
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Fair value of plan assets
297
283
Present value of defined benefit obligations
(305)
(282)
Net liability arising from defined benefit obligation of trust
(8)
Nil
Percentage allocation of plan assets of trust
Assets by category
Year ended
31 March 2024
Year ended
31 March 2023
Government Securities
46%
53%
Debentures/ bonds
40%
41%
Equity
14%
6%
Fixed deposits
0%
0%
(b) Gratuity plan
In accordance with the Payment of Gratuity Act, 1972, the Company contributes to a defined benefit plan (the “Gratuity
Plan”) covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees at
retirement, disability or termination of employment being an amount based on the respective employee’s last drawn salary
and the number of years of employment with the Company. The Gratuity plan is a funded plan and the Company makes
contribution to recognised funds in India.
Based on actuarial valuations conducted as at year end using the projected unit credit method, a provision is recognised in
full for the benefit obligation over and above the funds held in the Gratuity Plan.
The iron ore and oil & gas division of the Company have constituted a trust recognised by Indian Income Tax Authorities
for gratuity to employees, contributions to the trust are funded with the Life Insurance Corporation of India (LIC) and ICICI
Prudential Life Insurance Company Limited (ICICI).
Principal actuarial assumptions
Principal actuarial assumptions used to determine the present value of the Gratuity plan obligation are as follows:
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Discount rate
7.10%
7.39%
Expected rate of increase in compensation level of covered employees
2%-10%
2%-10%
In service mortality
IALM (2012-14)
IALM (2012-14)
Post retirement mortality
LIC (1996-98)
Ultimate
LIC (1996-98)
Ultimate
602
603
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Amount recognised in the balance sheet consists of:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Fair value of plan assets
175
159
Present value of defined benefit obligations
(281)
(252)
Net liability arising from defined benefit obligation
(106)
(93)
Amount recognised in the statement of profit and loss in respect of the Gratuity plan are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Current service cost
28
23
Net interest cost
7
5
Components of defined benefit costs recognised in profit or loss
35
28
Amount recognised in the other comprehensive income in respect of the Gratuity plan are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Re-measurement of the net defined benefit obligation:
Actuarial losses arising from demographic adjustments
0
0
Actuarial losses arising from experience adjustments
7
15
Actuarial losses/ (gains) arising from changes in financial assumptions
6
(2)
Losses on plan assets
1
2
Components of defined benefit costs recognised in other comprehensive income
14
15
Movement in present value of the Gratuity plan:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening balance
252
228
Current service cost
28
21
Benefits paid
(31)
(29)
Interest cost
19
16
Actuarial losses arising from changes in assumptions
13
16
Closing balance
281
252
Movement in the fair value of Gratuity plan assets is as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening balance
159
151
Contributions received
36
24
Benefits paid
(31)
(25)
Re-measurement loss arising from return on plan assets
(1)
(2)
Interest income
12
11
Closing balance
175
159
The above plan assets have been invested in the qualified insurance policies.
The actual return on plan assets was C 11 crore for the year ended 31 March 2024 and C 9 crore for the year ended
31 March 2023.
The weighted average duration of the defined benefit obligation is 14.59 years and 14.03 years as at 31 March 2024 and
31 March 2023 respectively.
The Company expects to contribute C 18 crore to the funded defined benefit plans in during the year ended 31 March 2025.
Sensitivity analysis
Below is the sensitivity analysis determined for significant actuarial assumptions for the determination of defined benefit
obligations and based on reasonably possible changes of the respective assumptions occurring at the end of the reporting
period while holding all other assumptions constant.
(C in crore)
Increase/ (Decrease) in defined benefit obligation
Year ended
31 March 2024
Year ended
31 March 2023
Discount rate
Increase by 0.50%
(16)
(13)
Decrease by 0.50%
16
13
Expected rate of increase in compensation level of covered employees
Increase by 0.50%
16
13
Decrease by 0.50%
(16)
(13)
The above sensitivity analysis may not be representative of the actual benefit obligation as it is unlikely that the change in
assumptions would occur in isolation of one another as some of the assumptions may be correlated.
In presenting the above sensitivity analysis, the present value of defined benefit obligation has been calculated using the
projected unit credit method at the end of reporting period, which is the same as that applied in calculating the defined
benefit obligation liability recognised in the balance sheet.
Maturity analysis of defined benefit obligation
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Less than 1 year
15
17
1-2 years
15
17
2-5 years
50
50
More than 5 years
201
168
281
252
Risk analysis
The Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined
benefit plans and management's estimation of the impact of these risks are as follows:
Investment risk
The Gratuity plan is funded with the LIC and ICICI. The Company does not have any liberty to manage the fund provided to
LIC and ICICI.
The present value of the defined benefit plan obligation is calculated using a discount rate determined by reference to
Government of India bonds. If the return on plan asset is below this rate, it will create a plan deficit.
604
605
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Interest risk
A decrease in the interest rate on plan assets will increase the net plan obligation.
Longevity risk / Life expectancy
The present value of the defined benefit plan obligation is calculated by reference to the best estimate of the mortality of
plan participants both during and at the end of the employment. An increase in the life expectancy of the plan participants
will increase the plan obligation.
Salary growth risk
The present value of the defined benefit plan obligation is calculated by reference to the future salaries of plan participants.
An increase in the salary of the plan participants will increase the plan obligation.
#
Code on Social Security, 2020
The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment
benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,
the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been
issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in
the period the Code becomes effective.
26 Employee benefits expense a, b
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Salaries and Wages
1,360
1,244
Share based payments (Refer note 27)
41
48
Contributions to provident and other funds (Refer Note 25)
116
97
Staff welfare expenses
120
106
Less: Cost allocated/ directly booked in Joint ventures
(557)
(569)
Total
1,080
926
a.
Net of recoveries of C 29 crore (31 March 2023: C 49 crore) from subsidiaries.
b.
Net of capitalisation of C 50 crore (31 March 2023: C 34 crore).
27 Share based payments
The Company offers equity based and cash based option plans to its employees, officers and directors through the Company's
stock option plan introduced in 2016 and Cairn India's stock option plan now administered by the Company pursuant to 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 ESOS schemes are administered through VESOS
trust and have underlying Vedanta Limited equity shares.
Options granted during the year ended 31 March 2024 and year ended 31 March 2023 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 C 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 2024 is presented below:
Financial Year
of Grant
Exercise Period
Options
outstanding
01 April 2023
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
2024
Options
exercisable 31
March 2024
2018-19
01 November 2021
- 30 April 2022
41,450
-
-
-
1,094
40,356
40,356*
2019-20
29 November 2022
- 28 May 2023
11,52,087
-
-
70,526
10,81,561
-
-
2020-21
06 November 2023
- 05 May 2024
83,25,751
-
-
41,53,161
26,54,818
15,17,772
15,17,772
2021-22
01 November 2024
- 30 April 2025
95,21,390
-
-
12,96,014
-
82,25,376
-
2021-22
Cash settled
-
-
-
-
-
-
-
2022-23
01 November 2025
- 30 April 2026
1,35,26,444
-
-
18,59,760
-
1,16,66,684
-
2022-23
Cash settled
24,888
-
-
24,888
-
-
-
2023-24
04 November 2026
- 04 May 2027
-
1,81,38,912
-
9,61,371
-
1,71,77,541
-
2023-24
Cash Settled
-
11,90,420
-
-
-
11,90,420
-
3,25,92,010
1,93,29,332
-
83,65,720
37,37,473
3,98,18,149
15,58,128
*Options for some employees could not be exercised within exercise period due to technical issues.
The details of share options for the year ended 31 March 2023 is presented below:
Financial Year
of Grant
Exercise Period
Options
outstanding
01 April 2022
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
2018-19
01 November 2021 -
30 April 2022
3,23,015
-
-
-
2,81,565
41,450
41,450*
2019-20
29 November 2022 -
28 May 2023
1,14,81,718
-
-
61,53,328
41,76,303
11,52,087
11,52,087
2019-20
Cash settled
18,350
-
-
9,740
8,610
-
-
2020-21
06 November 2023 -
05 May 2024
1,08,07,521
-
-
24,81,770
-
83,25,751
-
2020-21
Cash settled
19,164
-
-
19,164
-
-
-
2021-22
01 November 2024 -
30 April 2025
1,13,04,599
-
-
17,83,209
-
95,21,390
-
2021-22
Cash settled
16,907
-
-
16,907
-
-
-
2022-23
01 November 2025 -
30 April 2026
-
1,44,37,268
-
9,10,824
-
1,35,26,444
-
2022-23
Cash settled
-
24,888
-
-
-
24,888
-
3,39,71,274
1,44,62,156
-
1,13,74,942
44,66,478
3,25,92,010
11,93,537
*Options for some employees could not be exercised within exerscise period due to technical issues.
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.
606
607
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
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.
The assumptions used in the calculations of the charge in respect of the ESOS options granted during the year ended 31 March
2024 and 31 March 2023 are set out below:
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
ESOS 2023
ESOS 2022
Number of Options
Cash settled -
11,90,420
Equity settled -
1,81,38,912
Cash settled -
24,888
Equity settled -
1,44,37,268
Exercise Price
C 1
C 1
Share Price at the date of grant
C232.75
C 286.90
Contractual Life
3 years
3 years
Expected Volatility
41.16%
50.95%
Expected option life
3 years
3 years
Expected dividends
14.94%
7.11%
Risk free interest rate
7.18%
7.07%
Expected annual forfeitures
10% p.a
10% p.a
Fair value per option granted (Non-market performance based)
C 121.98
C 182.46
Weighted average share price at the date of exercise of stock options was C 210.14 (31 March 2023: C 303.80)
The weighted average remaining contractual life for the share options outstanding was 1.87 years (31 March 2023: 1.76 years).
The Company recognised total expenses of C 92 crore (31 March 2023: C 85 crore) related to equity settled share based
payment transactions for the year ended 31 March 2024 out of which C 44 crore (31 March 2023: C 33 crore) was recovered
from group companies. The total charge/ (reversal) recognised on account of cash settled share based plan during the year
ended 31 March 2024 is C 1 crore (31 March 2023: C (2) crore) and the carrying value of cash settled share based compensation
liability as at 31 March 2024 is C 1 crore (31 March 2023: C 2 crore).
Employee stock option plans of erstwhile Cairn India Limited:
The Company has provided CIESOP share based payment scheme to its employees.
CIESOP plan
There are no specific vesting conditions under CIESOP plan other than completion of the minimum service period of 3 years
from the date of grant. Phantom options are exercisable proportionate to the period of service rendered by the employee
subject to completion of one year. The exercise period is 7 years from the vesting date.
Details of employees stock option plans is presented below:
CIESOP Plan
Year ended 31 March 2024
Year ended 31 March 2023
Number of options
Weighted average
exercise price in J
Number of options
Weighted average
exercise price in J
Outstanding at the beginning of the year
-
-
10,37,641
286.85
Granted during the year
-
-
Nil
NA
Expired during the year
-
-
Nil
NA
Exercised during the year
-
-
2,66,914
286.85
Forfeited/ cancelled during the year
-
-
7,70,727
286.85
Outstanding at the end of the year
-
-
-
-
Exercisable at the end of the year
-
-
-
-
Weighted average share price at the date of exercise of stock options and exercise price for stock options during the year ended
31 March 2023 was C 411.80 and C 286.85, respectively.
Out of the total expense of C 49 crore (31 March 2023: C 50 crore) pertaining to above options for the year ended 31 March
2024, the Company has capitalised C 2 crore (31 March 2023: C 2 crore) expense for the year ended 31 March 2024.
28 Revenue from operations
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Sale of products (Refer note 34(a))
69,565
67,105
Sale of services
98
88
Total
69,663
67,193
a)
Revenue from sale of products and from sale of services for the year ended 31 March 2024 includes revenue from
contracts with customers of C 69,967 crore (31 March 2023: C 67,778 crore) and a net loss on mark-to-market of
C 304 crore (31 March 2023: loss of C 585 crore) on account of gains/ losses relating to sales that were provisionally
priced as at the beginning of the year with the final price settled in the current year, gains/ losses relating to sales fully
priced during the year, and marked to market gains/ losses relating to sales that were provisionally priced as at the end of
the year.
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 contain any
significant financing component as payment terms are within three months.
As per the terms of the contract with its customers, either all performance obligations are to be completed within one year
from the date of such contracts or the Company has a right to receive consideration from its customers for all completed
performance obligations. Accordingly, the Company has availed the practical expedient available under paragraph 121
of Ind AS 115 and dispensed with the additional disclosures with respect to performance obligations that remained
unsatisfied (or partially unsatisfied) at the balance sheet date. Further, since the terms of the contracts directly identify the
transaction price for each of the completed performance obligations there are no elements of transaction price which have
not been included in the revenue recognised in the financial statements. Further, there is no material difference between
the contract price and the revenue from contract with customers.
29 Other operating income
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Export incentives
153
194
Scrap sales
152
182
Miscellaneous income (Refer Note 39(M))
789
511
Total
1,094
887
608
609
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
30 Other Income
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Net gain on investments measured at FVTPL
13
44
Interest income from financial assets at amortised cost
- Bank deposits
112
103
- Loans
103
64
- Others
165
140
Interest on income tax refund
34
42
Dividend income from
- financial assets at FVOCI
1
0
- investment in subsidiaries
4,965
20,711
Deferred government grant income
84
81
Miscellaneous income
74
77
Total
5,551
21,262
31 Changes in inventories of finished goods and work-in-progress
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening Stock:
Finished Goods
336
385
Work in progress
2,503
3,018
Total
2,839
3,403
Add: Foreign exchange translation
1
17
(Less): Impairment of inventory
(48)
-
Less: Closing Stock
Finished Goods
298
336
Work in progress
2,186
2,503
Total
2,484
2,839
Changes in Inventory
308
581
32 Finance Cost
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Interest expense on financial liabilities at amortised cost a,c
5,618
4,405
Other finance costs
564
276
Net interest on defined benefit arrangement
7
5
Unwinding of discount on provisions (Refer note 24)
51
30
Less: Allocated to Joint venture
(1)
(1)
Less: Capitalisation of finance costs b (Refer note 5)
(560)
(331)
Total
5,679
4,384
a)
Includes interest expense on lease liabilities for the year ended 31 March 2024 is C 21 crore (31 March 2023: C 6 crore).
b)
Interest rate of 8.65% (31 March 2023: 6.75%) was used to determine the amount of general borrowing costs eligible for
capitalisation in respect of qualifying asset for the year ended 31 March 2024.
c)
Interest expense on income taxes is C 36 crore (31 March 2023: C 48 crore).
33 Other Expenses *
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Cess on crude oil
1,977
1,675
Royalty
644
335
Consumption of stores and spare parts
984
1,032
Repairs to plant and equipment
629
597
Carriage
1,401
1,342
Mine expenses
634
231
Net loss on foreign currency transactions and translations
88
352
Repairs to building
62
90
Insurance
111
110
Repairs others
91
93
Loss on sale/ discard of property, plant and equipment (net)
52
21
Rent d
20
18
Rates and taxes
72
13
Exploration costs written off
786
315
Directors sitting fees and commission
4
3
Remuneration to auditors a
10
9
Provision for doubtful advances/ expected credit loss/ Bad debts written off**
206
436
Share of expenses in producing oil & gas
1,842
1,884
Donation b
72
160
Miscellaneous expenses c
4,974
4,024
Less: Cost allocated/ directly booked in Joint ventures
(332)
(418)
Total
14,327
12,322
* Net of recoveries of C 40 crore (31 March 2023: C 66 crore) from subsidiaries
** Includes bad debts written off of C 733 crore against the provision for expected credit loss for the year ended 31 March 2024.
(a) Remuneration to auditors comprises:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Payment to auditors
For statutory audit (including quarterly reviews)
8
7
For overseas reporting
1
1
For certification and other attest services
0
0
For other services
1
1
For reimbursement of expenses
0
0
Total
10
9
(b) Includes contributions through electoral bonds of C 70 crore (31 March 2023: C 155 crore).
(c)
Includes Corporate social responsibility expenses of C 107 crore (31 March 2023: C 112 crore) as detailed in note 41(a) and
Management and Brand Fees (net) of C 2,413 crore (31 March 2023: C 1,701 crore) as detailed in note 39.
(d) Rent represents expense on short term/ low value leases.
610
611
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
34 Exceptional Items
(C in crore)
Particulars
Year ended 31 March 2024
Year ended 31 March 2023*
Exceptional
Items
Tax effect of
exceptional
items
Exceptional
items after tax
Exceptional
Items
Tax effect of
exceptional
items
Exceptional
items after tax
Property, plant and equipment ("PPE"),
exploration intangible assets under development,
capital work-in-progress ("CWIP"), investments
and other assets (impaired)/ reversal or (written
off)/ written back in:
-
Oil and Gas
1) Reversal of previously recorded
impairment/ net (loss)/ gain on
buy back a,b
1,599
(138)
1,461
910
-
910
-
Power
1) CWIP written off (Refer note 3(d)(i))
-
-
-
(8,133)
2,036
(6,097)
-
Copper (Refer note 3(c)(A)(ii))
(746)
188
(558)
-
-
-
-
Aluminium c
(131)
33
(98)
-
-
-
-
Unallocated
1) Gain on redemption of OCRPS d
3,287
-
3,287
-
-
-
2) Reversal of previously recorded
impairment d,e,f
1,064
-
1,064
3,967
-
3,967
SAED on Oil and Gas sector g
-
-
-
(524)
103
(421)
Total
5,073
83
5,156
(3,780)
2,139
(1,641)
* Restated, refer note 3(d)(i)
a.
(i)
The Government of India ("GoI"), acting through the Directorate General of Hydrocarbons ("DGH"), had raised a
demand up to 14 May 2020 for Government’s additional share of Profit Oil based on its computation of disallowance
of cost incurred over retrospective re-allocation of certain common costs between Development Areas (DAs) of
Rajasthan Block and certain other matters aggregating to C 9,545 crore (US$ 1,162 million) and applicable interest
thereon representing share of Vedanta Limited and its subsidiary.
The Company had disputed the aforesaid demand and invoked arbitration as per the provisions of the Production
Sharing Contract. The Company has received the Final Partial Award dated 22 August 2023 from the Arbitration
Tribunal (‘the Tribunal”) as amended by order dated 15 November 2023 and 08 December 2023 (“the Award”),
dismissing the Government’s contention of additional Profit Petroleum in relation to allocation of common
development costs across Development Areas and certain other matters in accordance with terms of the Production
Sharing Contract for Rajasthan Block, while disallowing some matters. Further, the Tribunal has decided that the
Company was allowed to claim cost recovery of exploration cost for the purpose of computation of Profit Oil.
Pursuant to the Award, the Company has recognised a benefit of C 2,381 crore (US$ 289 million) in revenue from
operations and reversed previously recognised impairment on PPE of C 550 crore (US$ 67 million) during the
year ended 31 March 2024 (refer note (ii) for details of recoverable value). Further, the Company has reversed
previously recognised impairment on investments in wholly owned subsidiary, Cairn India Holding Limited ("CIHL") of
C 1,082 crore (US$ 131 million) on account of increase in valuation of CIHL pursuant to the Award.
GoI has sought an additional award or interpretation/ clarification on certain matters decided by the Tribunal under
the Indian Arbitration and Conciliation Act, 1996 ("the Act") ("GoI Application"). The Tribunal vide its orders dated
15 November 2023 and 08 December 2023 has dismissed GOI’s interpretation and additional award applications
in favour of the Company. The Company has adjusted the liability during the current year of C 970 crore (US$ 116
million) against the aforesaid benefits recognised as per the Award.
GoI has filed interim relief application on 03 February 2024 stating that the Company has unilaterally enforced the
award although the quantification of the same is pending.
The Company is of the view that it is bound to implement the award. Further, the application by GoI does not meet
the strict criteria for grant of interim injunction. The matter was heard on 26 March 2024 and order of the Tribunal
is awaited.
GoI also has filed an appeal on 07 March 2024 against the Award in Delhi High Court and the matter was heard on
14 March 2024. No stay was granted and petition was not admitted. Next date of hearing is 01 May 2024.The
Company is of the view that there is no merit in the challenge filed by GoI, as the Court cannot re-appreciate the
evidence in Section 34 appeal as the interpretation by the Tribunal is plausible.
(ii) As at 30 September 2023, the Company has recognised a net impairment reversal of C 550 crore (US$ 67 million) on
its assets in the oil and gas producing facilities pursuant to Final partial arbitration award (Refer note (i) above). The
recoverable amount of the Company’s share in Rajasthan Oil and Gas cash generating unit (“RJ CGU”) is determined
to be C 5,897 crore (US$ 709 million) as at 30 September 2023. The recoverable amount of the RJ CGU is 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 generated by the projected oil and
natural gas production profiles up to 2040, the expected dates of cessation of production sharing contract (PSC)/
cessation of production from each producing field based on the current estimates of reserves and risked resources.
Reserves assumptions for fair value less costs of disposal tests consider all reserves that a market participant would
consider when valuing the asset, which are usually broader in scope than the reserves used in a value-in-use test.
Discounted cash flow analysis used to calculate fair value less costs of disposal uses assumption for short-term
oil price of US$ 79 per barrel for the next one year and tapers down to long-term nominal price of US$ 74 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 11.32% 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 C 50 crore (US$ 6 million) and C 199 crore (US$ 24 million) respectively.
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 million @ approximately US$ 3.3 per share. Pursuant to the
same, CIHL has bought back 5,18,51,837 shares for C 1,389 crore (US$ 168 million) (31 March 2023: 10,24,69,151 shares
for C 2,665 crore (US$ 332 million)). Consequently, the Company has recorded a net loss of C 33 crore (31 March 2023: gain
of C 910 crore), on account of:
i.
Realised loss of C 326 crore (31 March 2023: C 630 crore) on account of buy back of investment set off by reversal of
previously recorded impairment of C 293 crore (31 March 2023: C 813 crore) on investment bought back.
ii.
An earlier impairment charge of C 727 crore had been reversed during the year year ended 31 March 2023 on
remaining investment in CIHL.
c.
Represents certain items of CWIP, which have been written off during the year ended 31 March 2024 as they are no longer
expected to be used.
d.
During the year ended 31 March 2023, the Company had recognised an impairment reversal of C 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 had been determined based on the valuation of Zinc International business (“VZI”)
held under THLZVL. The recoverable amount of VZI had 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 was 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 were 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 was higher than the carrying value, resulting in impairment reversal.
612
613
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
During the current year ended 31 March 2024, these OCRPS have been redeemed and the Company has recorded a foreign
exchange gain of C 2,597 crore on this redemption.
Further, the Company held investments in OCRPS of C 2,495 crore in THL Zinc Holding BV ("THLZBV"), a wholly owned
subsidiary of the Company which was fully impaired in the books of the Company. During the year ended 31 March 2024,
THLZBV redeemed investments amounting to C 860 crore. Accordingly, the Company has recorded an impairment reversal
of C 860 crore and foreign exchange gain of C 690 crore on the redemption of these OCRPS in THLZBV.
e.
Refer note 3(d)(iv)
f.
During the year ended 31 March 2023, the Company had recognised an impairment reversal of C 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 previous year, WCL had 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.
g.
The GoI vide its notification dated 30 June 2022 levied Special Additional Excise Duty ("SAED") on production of crude
oil, i.e., cess on windfall gain triggered by increase in crude oil prices which was effective from 01 July 2022. The
consequential net impact of the said duty had on the results was presented as an exceptional item for the year ended
31 March 2023. SAED is continuing as levy like other duty of excise, that forms part of ordinary business of production
of crude oil and hence, consequential impact of the said duty has been presented as an ordinary item in these financial
statements for the year ended 31 March 2024.
35 Tax expense
(a) Tax charge/ (benefit) recognised in profit or loss (including on exceptional items)
(C in crore)
Year ended
31 March 2024
Year ended
31 March 2023*
Current tax:
Current tax expense on profit for the year
1,175
3,790
Current tax benefit - exceptional items (Refer Note 34)
(33)
(1,471)
Effect of change in Tax Regime**
(1,786)
-
Total Current Tax (a)
(644)
2,319
Deferred tax:
Origination and reversal of temporary differences
(108)
(4,033)
Benefit in respect of exceptional items (Refer Note 34)
(50)
(668)
Effect of change in Tax Regime**
7,914
-
Total Deferred Tax (b)
7,756
(4,701)
Net tax charge/ (benefit) (a+b)
7,112
(2,382)
Profit before tax
13,735
18,877
Effective income tax rate (%)
52%
(13%)
Tax expense
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Tax benefit on exceptional items
(83)
(2,139)
Effect of change in Tax Regime**
6,128
-
Tax expense/ (benefit) - others
1,067
(243)
Net tax charge/ (benefit)
7,112
(2,382)
(b) A reconciliation of income tax expense/ (benefit) applicable to profit before tax at the Indian statutory income tax rate to
recognised income tax expense/ (benefit) for the year indicated are as follows:
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Profit before tax
13,735
18,877
Indian statutory income tax rate
25.168%
34.944%
Tax at statutory income tax rate
3,457
6,596
Deduction u/s 80M
(1,250)
(7,254)
Tax holidays
-
(355)
Change in deferred tax balances due to change in tax law
-
16
Unrecognised tax assets (Net)
(1,357)
(1,707)
Capital gains/other items subject to lower tax rate
-
301
Impact of change in Tax Regime**
6,128
-
Other permanent differences
134
21
Total
7,112
(2,382)
*Restated, refer note 3(d)(i)
**Pursuant to the introduction of Section 115BAA of the Income-tax Act, 1961 ("New Tax Regime"), the Company has an option to pay
corporate income tax at a lower rate of 22% plus applicable surcharge and cess as against the currently applicable rate of 30% plus
surcharge and cess. Under the New Tax Regime, provisions of Section 115 JB-Minimum Alternate Tax (MAT) are no longer applicable.
During the year ended 31 March 2024, the Company has elected to adopt New Tax Regime from FY 2022-23 onwards due to expected
corporate actions and other considerations and the first tax return under the New Tax Regime has been filed for FY 2022-23 on 29
November 2023. Upon adoption of New Tax Regime for FY 2022-23, the current tax charge is lower by C 1,786 crore (mainly on account of
section 80M benefit not available under MAT) and deferred tax charge is higher by C 151 crore. Further, the MAT credit balance of
C 7,763 crore, for periods up to 31 March 2023, has been expensed. Consequently, the net impact of the above amounting to C 6,128 crore
is accounted for as exceptional tax expense in the year ended 31 March 2024.
Accordingly, current year tax expense is not comparable with the reported tax expense for the year ended 31 March 2023.
(c) Deferred tax assets/ liabilities
The Company has accrued significant amounts of deferred tax. The majority of the deferred tax liability represents
accelerated tax relief for the depreciation of property, plant and equipment. Significant components of deferred tax (assets)
and liabilities recognised in the balance sheet are as follows :
For the year ended 31 March 2024
(C in crore)
Significant
components of
Deferred tax (assets)
and liabilities
Opening
balance as
at 01 April
2023*
Charged/ (credited)
to statement of
profit and loss
Charged/
(credited) to other
comprehensive
income#
Exchange
difference and other
adjustments
Charged/
(credited) to
equity
Closing
balance as at
31 March 2024
Property, Plant and
Equipment
2,692
(346)
-
59
-
2,405
Voluntary retirement
scheme
1
-
-
-
-
1
Employee benefits
5
(5)
(7)
-
-
(7)
Fair valuation of
derivative asset/liability
(75)
21
(8)
-
-
(62)
Fair valuation of other
asset/ liability
(36)
10
-
-
-
(26)
MAT credit entitlement
(7,763)
7,763
-
-
-
-
Other temporary
differences
(734)
313
(3)
2
-
(422)
Total
(5,910)
7,756
(18)
61
-
1,889
# Out of total tax benefit on items of OCI in Statement of Profit and Loss, deferred tax benefit is shown in above table. Balance tax benefit
is of current tax nature on foreign currency translation difference.
614
615
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
For the year ended 31 March 2023
(C in crore)
Significant
components of
Deferred tax (assets)
and liabilities
Opening
balance as at
01 April 2022
Charged/ (credited)
to statement of
profit and loss*
Charged/
(credited) to other
comprehensive
income
Exchange
difference and other
adjustments
Charged/
(credited) to
equity
Closing
balance as
at 31 March
2023*
Property, Plant and
Equipment
4,327
(1,626)
-
(9)
-
2,692
Voluntary retirement
scheme
1
-
-
-
-
1
Employee benefits
8
(4)
(6)
-
7
5
Fair valuation of
derivative asset/liability
(23)
-
(52)
-
-
(75)
Fair valuation of other
asset/liability
(36)
-
-
-
-
(36)
MAT credit entitlement
(4,839)
(2,924)
-
-
-
(7,763)
Other temporary
differences
(556)
(147)
(31)
-
-
(734)
Total
(1,118)
(4,701)
(89)
(9)
7
(5,910)
* Restated refer note 3(d)(i)
(d) Non- current tax assets
Non- current tax assets of C 3,496 crore (31 March 2023: C 1,753 crore) mainly represents income tax receivable from
Indian tax authorities by the Company relating to the refund arising due to change in Tax Regime and 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)
(C in crore, except otherwise stated)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023*
Profit after tax attributable to equity share holders for Basic and Diluted EPS
6,623
21,259
Weighted Average no. of equity shares outstanding during the year for Basic and Dilutive EPS (in crore)
372
372
Basic and Diluted Earnings per share (in C)
17.80
57.15
Nominal value per share (in C)
1.00
1.00
*Restated, refer note 3(d)(i)
37 Dividends
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Amounts recognised as distributions to equity shareholders:
Interim dividends: C 29.50/- per share (31 March 2023: C 101.50/- per share)
10,959
37,658
Refund of Dividend distribution tax
-
(86)
Total
10,959
37,572
38 Commitments, contingencies and guarantees
A) Commitments
The Company has a number of continuing operational and financial commitments in the normal course of
business including:
•
Exploratory mining commitments;
•
Oil & gas commitments;
•
Mining commitments arising under production sharing agreements; and
•
Completion of the construction of certain assets.
Estimated amount of contracts remaining to be executed on capital accounts and not provided for:
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Oil and Gas sector
Cairn
549
750
Aluminium sector
Lanjigarh Refinery (Phase II)
1,557
2,439
Jharsuguda 1.25 MTPA smelter
545
1,266
Copper sector
Tuticorin Smelter 400 KTPA*
-
3,066
Others
954
721
Total
3,605
8,242
*On 29 February 2024, Hon’ble Supreme Court dismissed the Special Leave Petition filed by the Company, pursuant to which the
Company has decided to terminate the contracts which were under suspension. Refer Note 3(c)(A)(ii)
Committed work programme (Other than capital commitment)
(C in crore)
Particulars
As at
31 March 2024
As at
31 March 2023
Oil and Gas sector
Cairn (OALP - New Oil and Gas blocks)
5,073
5,184
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%) at
variable cost as per the conditions referred to in PPA. The PPA has a tenure of twenty five years, expiring in 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 dated 05
October 2021 and directed the Company to operate Unit 2 as an IPP. Against the final order passed by the OERC, the
Company has preferred an appeal before Appellate Tribunal for Electricity on 03 May 2023.
(ii) During the year ended 31 March 2023, the Company had 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 Vedanta Inc, for procuring
renewable power over twenty five years from date of commissioning of the combined renewable energy power
projects (“the Projects”) on a group captive basis. These Serentica group companies were incorporated for building
616
617
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
the Projects of approximately 871 MW (31 March 2023: 691 MW). During the current year, the Company has invested
C 101 crore (31 March 2023: C 69 crore) in Optionally Convertible Redeemable Preference shares (“OCRPS”) of
C 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 2024, total outstanding
commitments related to PDA with Serentica group companies are C 504 crore (31 March 2023: C 605 crore).
B) Guarantees
The aggregate amount of indemnities and other guarantees on which the Company does not expect any material losses is
C 25,690 crore (31 March 2023: C 16,899 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 C 1,681 crore relating to the export and
payment of import duties on purchases of raw material and capital goods (31 March 2023: C 1,304 crore).
b)
Guarantees issued for the Company’s share of minimum work programme commitments of C 3,071 crore (31 March
2023: C 2,742 crore).
c)
Guarantees of C 59 crore (31 March 2023: C 65 crore) issued under bid bond.
d)
Bank guarantees of C 115 crore (31 March 2023: C 115 crore) has been provided by the Company on behalf of
Vedanta Inc 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 C 17,772 crore
(31 March 2023: C 9,603 crore) (Refer Note 39).
f)
Other guarantees worth C 2,992 crore (31 March 2023: C 3,070 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.
C) Export Obligations
The Company has export obligations of C 1,800 crore (31 March 2023: C 1,262 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 C 438 crore (31 March
2023: C 307 crore) reduced in proportion to actual exports, plus applicable interest.
The Company has given bonds of C 523 crore (31 March 2023: C 367 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. GoI then filed an appeal
at Federal Court of Malaysia. The matter was heard on 28 February 2019 and the Federal Court dismissed GoI’s leave
to appeal. The Company has also filed for the enforcement of the Partial Award and Final Award before the Hon'ble
Delhi High Court. The matter is 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 C 533 crore (US$ 64
million) plus interest (31 March 2023: C 526 crore (US$ 64 million) plus interest).
b)
Proceedings related to the imposition of entry tax
The Company challenged the constitutional validity of the local statutes and related notifications in the states of
Odisha and Rajasthan pertaining to the levy of entry tax on the entry of goods brought into the respective states
from outside. Post some contradictory orders of High Courts across India adjudicating on similar challenges, the
Supreme Court referred the matters to a nine judge bench. Post a detailed hearing, although the bench rejected the
compensatory nature of tax as a ground of challenge, it maintained status quo with respect to all other issues which
have been left open for adjudication by regular benches hearing the matters.
Following the order of the nine judge bench, the regular bench of the Supreme Court heard the matters and remanded
the entry tax matters relating to the issue of discrimination against domestic goods bought from other States to the
respective High Courts for final determination but retained the issue of jurisdiction for levy on imported goods, for
determination by the regular bench of the Supreme Court. Following the order of the Supreme Court, the Company
filed writ petitions in respective High Courts.
On 09 October 2017, the Supreme Court has held that states have the jurisdiction to levy entry tax on imported goods.
With this Supreme Court judgement, imported goods will rank pari-passu with domestic goods for the purpose of levy
of Entry tax. The Company has amended its appeal (writ petitions) in Odisha to include imported goods as well.
The issue pertaining to the levy of entry tax on the movement of goods into a Special Economic Zone (SEZ) remains
pending before the Odisha High Court. The Company has challenged the levy of entry tax on any movement of goods
into SEZ based on the definition of ‘local area’ under the Odisha Entry Tax Act which is very clear and does not include
a SEZ. In addition, the Government of Odisha further through its SEZ Policy 2015 and the operational guidelines for
administration of this policy dated 22 August 2016, exempted the entry tax levy on SEZ operations.
The total claims against the Company (net of provisions made) are C 767 crore (31 March 2023: C 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 C 543 crore (31 March 2023: C 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,
disallowance of tax holiday benefit on production of gas under section 80IB of the Income Tax Act, 1961, on
account of depreciation disallowances under the Income Tax Act and interest thereon which are pending at various
appellate levels.
The Company believes that these disallowances are not tenable and accordingly no provision is considered necessary.
d)
Miscellaneous disputes- Others
The Company is subject to various claims and exposures which arise in the ordinary course of conducting and
financing its business from the excise, indirect tax authorities and others. These claims and exposures mostly relate
to the assessable values of sales and purchases or to incomplete documentation supporting the Company’s returns
or other claims.
The approximate value of claims (excluding the items as set out separately above) against the Company totals to
C 2,673 crore (31 March 2023: C 2,733 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
expected to have a material adverse effect on the results of operations, cash flows or the financial position of
the Company.
618
619
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
39 RELATED PARTY DISCLOSURES
List of related parties and relationships
A)
Entities controlling the Company (Holding Companies)
Vedanta Incorporated (formerly known as Volcan
Investments Limited) (a)
Volcan Investments Cyprus Limited
Intermediate Holding Companies
Vedanta Resources Limited
Finsider International Company Limited (b)
Richter Holdings Limited (b)
Twin Star Holdings Limited (b)
Vedanta Resources Cyprus Limited (b)
Vedanta Resources Finance Limited (b)
Vedanta Resources Holdings Limited (b)
Welter Trading Limited (b)
Westglobe Limited (b)
Vedanta Holdings Mauritius II Limited (b)
Vedanta Holdings Mauritius Limited (b)
Vedanta Holdings Jersey Limited (b)
Vedanta Netherlands Investments BV (b)
Vedanta UK Investments Limited (b)
B)
Fellow Subsidiaries (with whom transactions have
taken place)
Sterlite Grid 16 Limited
Sterlite Convergence Limited
Sterlite Iron and Steel Company Limited
Sterlite Power Transmission Limited
Sterlite Technologies Limited
STL Digital Limited
Twin Star Technologies Limited
Vedanta Resources Investments Limited
C)
Associates of ultimate controlling party (with whom
transactions have taken place)
Serentica Renewables India 3 Private Limited (c)
Serentica Renewables India 6 Private Limited (c)
Serentica Renewables India 9 Private Limited (c)
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 (e)
Cairn Energy Hydrocarbons Limited
Cairn India Holdings Limited
Cairn Lanka (Private) Limited
CIG Mauritius Private Limited (e)
CIG Mauritius Holdings Private Limited (e)
Copper Mines of Tasmania (Proprietary) Limited (f)
Desai Cement Company Private Limited
ESL Steel Limited
Facor Realty and Infrastructure Limited (e)
Ferro Alloys Corporation Limited (g)
Facor Power Limited (g)
Fujairah Gold FZC
Goa Sea Port Private Limited (h)
Hindustan Zinc Alloys Private Limited
Hindustan Zinc Fertilisers Private Limited (i)
Hindustan Zinc Limited
Killoran Lisheen Mining Limited
Lakomasko BV (e)
Lisheen Milling Limited
Lisheen Mine Partnership
Malco Energy Limited
Maritime Ventures Private Limited (h)
Meenakshi Energy Limited (j)
Monte Cello BV
Namzinc (Proprietary) Limited
Paradip Multi Cargo Berth Private Limited (h)
Sesa Mining Corporation Limited (h)
Sesa Resources Limited
Sesa Iron and Steel Limited (k)
Skorpion Mining Company (Proprietary) Limited
Skorpion Zinc (Proprietary) Limited
Sterlite Ports Limited (h)
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 Aluminium Metal Limited (k)
Vedanta Base Metals Limited (k)
Vedanta Copper International VCI Company Limited (k)
Vedanta Displays Limited (j)
Vedanta Iron and Steel Limited (k)
Vedanta Semiconductors Private Limited (j)
Vedanta Lisheen Holdings Limited
Vedanta Lisheen Mining Limited
Vedanta Zinc Football & Sports Foundation
Vizag General Cargo Berth Private Limited
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
Runaya Refining LLP
Sesa Community Development Foundation
Vedanta Foundation
Vedanta Medical Research Foundation
Vedanta Limited ESOS Trust
a.
The name of ultimate holding Company "Volcan Investments Limited" has been changed to "Vedanta Incorporated",
effective 13 October 2023.
b.
These entities are subsidiary companies of VRL and VRL through its certain subsidiaries holds 61.95% in the Company.
c.
During the year ended 31 March 2023, 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 Vedanta Incorporated (formerly known as Volcan Investments Limited) ("Vedanta Inc").
d.
Merged with the Company during the year ended 31 March 2024 (Refer note 3(d)(i)).
e.
Liquidated during the year ended 31 March 2023.
f.
Disposed off during the year ended 31 March 2024 (Refer note 3(d)(iv)).
g.
Facor Power Limited (“FPL”) merged into Ferro Alloys Corporation Limited (“FACOR”), effective 21 November 2022.
h.
Refer Note 41(c)
i.
Incorporated during the year ended 31 March 2023.
j.
Acquired during the year ended 31 March 2024.
k.
Incorporated during the year ended 31 March 2024.
Ultimate Controlling party
Vedanta Limited is a majority-owned and controlled subsidiary of Vedanta Resources Limited ("VRL"). Vedanta Inc and
its wholly owned subsidiary together hold 100 % of the share capital and 100 % of the voting rights of VRL. Vedanta Inc is
100 % beneficially owned and controlled by the Anil Agarwal Discretionary Trust ("Trust"). Vedanta Inc, Volcan Investments
Cyprus Limited and other intermediate holding companies except VRL do not produce Group financial statements.
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 identified by
or on behalf of the Company (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding
Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or
entities identified by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like on
behalf of the Ultimate Beneficiaries.
620
621
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
I)
For the year ended 31 March 2024
(C in crore)
Particulars
Entities
controlling the
company/ Fellow
Subsidiaries
Associates
Subsidiaries
Others
Total
Income :
(i)
Revenue from operations
1,504
-
1,145
26
2,675
(ii)
Other Income
a) Interest and guarantee commission
27
-
186
-
213
b) Dividend income
1
-
4,965
-
4,966
c) Brand License and Strategic Service Fees M
-
-
561
-
561
d) Outsourcing service fees
5
-
-
-
5
e) Miscellaneous income
-
-
0
1
1
Expenditure and other transactions :
(i)
Purchase of goods/ services P
75
-
1,674
80
1,829
(ii)
Stock options expenses/ (recovery)
-
-
(44)
-
(44)
(iii)
Allocation of Corporate Expenses
-
-
69
-
69
(iv)
Management and Brand Fees (net*) M
2,413
-
-
-
2,413
(v)
Reimbursement for other expenses (net of recovery)
1
-
(27)
(2)
(28)
(vi)
Corporate Social Responsibility expenditure/
Donation
-
-
-
97
97
(vii)
Contribution to Post retirement employee benefit
trust
-
-
-
12
12
(viii)
(Purchase)/ Sale of fixed assets
-
-
(6)
-
(6)
(ix)
Dividend paid
- To Holding companies
7,289
-
-
0
7,289
- To key management personnel and their relatives
-
-
-
1
1
- To Non executive directors and their relatives
-
-
-
0
0
(x)
Commission/ Sitting Fees
- To Non executive directors
-
-
-
6
6
- To other key management personnel
-
-
-
0
0
(xi)
Interest and guarantee commission expense Q
123
-
14
-
137
(xii)
Miscellaneous expenses
-
-
15
-
15
Transactions during the year :
(i)
Financial guarantees given
-
-
12,440
-
12,440
(ii)
Financial guarantees relinquished
-
-
(4,386)
-
(4,386)
(iii)
Loans given during the year
0
-
1,890
200
2,090
(iv)
Loans repaid during the year K
-
-
(778)
(99)
(877)
(v)
Investments made during the year (refer note 38)
-
-
76
101
177
(vi)
Investments redeemed during the year
(refer note 34(d))
-
-
(7,334)
-
(7,334)
(vii)
Buy back made by subsidiary during the year
(refer note 34(b))
-
-
(1,389)
-
(1,389)
(viii)
Short term borrowings taken during the year
-
-
1,600
-
1,600
(ix)
Long term borrowings repaid during the year
-
-
(1,114)
-
(1,114)
Balances as at year end :
(i)
Trade Receivables
14
-
21
0
35
(ii)
Loans given O
-
-
1,742
154
1,896
(iii)
Short term borrowings
-
-
1,600
-
1,600
(C in crore)
Particulars
Entities
controlling the
company/ Fellow
Subsidiaries
Associates
Subsidiaries
Others
Total
(iv)
Other receivables and advances (including brand
fee prepaid #) M, Q
190
9
1,652
3
1,854
(v)
Trade Payables
10
-
13
10
33
(vi)
Other payables N
23
-
119
37
179
(vii)
Financial guarantee given
-
-
17,747
-
17,747
(viii)
Banking Limits assigned/utilised to/for group
companies L
115
-
25
-
140
(ix)
Sitting fee, commission and consultancy fees
payable
- To Non executive directors
-
-
-
0
0
- To key management personnel
-
-
-
0
0
Remuneration of key management personnel
(C in crore)
Particulars
For the Year ended
31 March 2024
Short-term employee benefits
32
Post employment benefits **
1
Share based payments
0
Total
33
* Net of discount earned on management and brand fees of C 146 crore during the current year ended 31 March 2024.
# Net of refund received of C 1,030 crore against prepaid brand fee during the current year ended 31 March 2024.
** Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees together.
J)
For the period ended 31 March 2023
(C in crore)
Particulars
Entities
controlling the
company/ Fellow
Subsidiaries
Associates
Subsidiaries
Others
Total
Income :
(i)
Revenue from operations
1,602
-
1,432
6
3,040
(ii)
Other Income
a) Interest and guarantee commission
28
-
100
-
128
b) Dividend income
0
-
20,711
-
20,711
c) Brand License and Strategic Service Fees M
-
-
318
-
318
d) Outsourcing service fees
5
-
-
-
5
e) Miscellaneous income
-
-
0
1
1
Expenditure and other transactions :
(i)
Purchase of goods/ services P
11
-
656
72
739
(ii)
Stock options expenses/ (recovery)
-
-
33
-
33
(iii)
Allocation of Corporate Expenses
-
-
115
-
115
(iv)
Management and Brand Fees M
1,701
-
-
-
1,701
(v)
Reimbursement for other expenses (net of recovery)
(2)
-
(75)
(2)
(79)
(vi)
Corporate Social Responsibility expenditure/
Donation
-
-
-
64
64
(vii)
Contribution to Post retirement employee benefit
trust
-
-
-
8
8
(viii)
(Purchase)/ Sale of fixed assets
(18)
-
14
-
(4)
622
623
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
(C in crore)
Particulars
Entities
controlling the
company/ Fellow
Subsidiaries
Associates
Subsidiaries
Others
Total
(ix)
Dividend paid
- To Holding companies
26,170
-
-
0
26,170
- To key management personnel and their relatives
-
-
-
2
2
- To Non executive directors and their relatives
-
-
-
0
0
(x)
Commission/ Sitting Fees
- To Non executive directors
-
-
-
5
5
- To other key management personnel
-
-
-
0
0
- To relatives of key management personnel
-
-
-
0
0
(xi)
Interest and guarantee commission expense Q
157
-
46
-
203
(xii)
Miscellaneous expenses
-
-
9
-
9
Transactions during the year :
(i)
Financial guarantees given
-
-
1,174
-
1,174
(ii)
Financial guarantees relinquished
-
-
(3,298)
-
(3,298)
(iii)
Loans given during the year
-
-
543
-
543
(iv)
Loans repaid during the year K
-
-
(431)
(125)
(556)
(v)
Investments made during the year (refer note 38)
-
1
-
69
70
(vi)
Buy back made by subsidiary during the year
(refer note 34(b))
-
-
2,665
-
2,665
(vii)
Long term borrowings taken during the year
-
-
1,084
-
1,084
Balances as at year end :
(i)
Trade Receivables
11
-
220
-
231
(ii)
Loans given O
-
-
630
53
683
(iii)
Long term borrowings
-
-
1,109
-
1,109
(iv)
Other receivables and advances (including brand
fee prepaid) M, Q
1,488
9
1,139
33
2,669
(v)
Trade Payables
21
-
33
15
69
(vi)
Other payables (including brand fee payable) M, N
244
-
46
18
308
(vii)
Financial guarantee given
-
-
9,541
-
9,541
(viii)
Banking Limits assigned/utilised to/for group
companies L
115
-
62
-
177
(ix)
Sitting fee, commission and consultancy fees
payable
- To Non executive directors
-
-
-
3
3
- To key management personnel
-
-
-
0
0
(x)
Dividend payable
- To Holding companies
4,887
-
-
0
4,887
- To key management personnel and their relatives
-
-
-
1
1
- To Non executive directors and their relatives
-
-
-
0
0
Remuneration of key management personnel
(C in crore)
Particulars
For the Year ended
31 March 2023
Short-term employee benefits
36
Post employment benefits *
1
Share based payments
4
Total
41
* Does not include the provision made for gratuity and leave benefits, as they are determined on an actuarial basis for all the employees
together.
K)
The Company reduced its loan receivable from Vedanta Limited ESOS Trust by C 99 crore (31 March 2023: C 125 crore)
on exercise of stock options by employees. Further, the Company has given an additional loan of C 200 crore to Vedanta
Limited ESOS Trust for purchase of shares.
L)
Bank guarantee given by the Company on behalf of Vedanta Inc (formerly known as Volcan Investments Limited) in favour
of Income Tax department, India as collateral in respect of certain tax disputes of Vedanta Inc.
M) The Company has a Brand license and strategic service fee agreement (“the Agreement”) with Vedanta Resources
Limited ("VRL") for the use of brand ‘Vedanta’ and providing strategic services which envisaged payment to VRL at 3%
of turnover of the Company. The Company has recorded an expense of C 1,879 crore (net of discount) (31 March 2023:
C 1,344 crore) for the year ended 31 March 2024. The Company generally pays such fee in advance, based on its estimated
annual turnover.
During the year ended 31 March 2023, the Company executed a sub-licensing agreement for its existing Brand License
and Strategic Services Fee agreement with VRL consequent to which it had 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 was agreed, of which 1.70% would be passed on as a sub-licensing fee to
VRL. Consequently, the Company has recognised an income of C 561 crore (31 March 2023: C 318 crore) and an expense
of C 477 crore (31 March 2023: C 270 crore) for the year ended 31 March 2024.
During the year, VRL has assigned the Agreement to its wholly owned subsidiary, Vedanta Resources Investments Limited
(“VRIL”), whereby the Company will fulfil its future obligations under the Agreement via VRIL.
N) During the year ended 31 March 2021, the Directorate General of Foreign Trade (“DGFT”) had issued scrips worth
C 216 crore to the Company under the Target Plus Scheme (“TPS”) that must be utilised by February 2023. Out of these,
scrips amounting to C 48 crore and C 3 crore had been allocated to HZL and BALCO, respectively and corresponding
liabilities to HZL and BALCO has been recorded in the books of the Company. As at 31 March 2024, scrips of C 28 crore and
C 3 crore are yet to be utilised with respect to HZL and BALCO, respectively. As the TPS license had expired, the
Company had created a provision against these scrips and written back its payable to HZL and BALCO in the year ended
31 March 2023.
O) During the year ended 31 March 2024, 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 2024 is C 5 crore (31 March 2023: C 5 crore). The loan
is unsecured in nature and carries an interest rate of 12.80% per annum. The loan including accrued interest thereon have
been fully provided for in the books of the Company.
P) During the year ended 31 March 2023, the Company executed an agency contract with VRL. Pursuant to which, the
Company procured calcined alumina amounting to C 1,054 crore (31 March 2023: C735 crore) on which an agency
commission of C 5 crore (31 March 2023: C 4 crore) is paid to VRL.
Q) Vedanta Resources Limited (“VRL”), as a parent company, has provided financial and performance guarantee to the
Government of India for erstwhile Cairn India group’s (“Cairn”) obligations under the Production Sharing Contract (‘PSC’)
provided for onshore block RJ-ON-90/1, for making available financial resources equivalent to Cairn’s share for its
obligations under the PSC, personnel and technical services in accordance with industry practices and any other resources
in case Cairn is unable to fulfil its obligations under the PSC.
Similarly, VRL has also provided financial and performance guarantee to the Government of India for the Company’s
obligations under the Revenue Sharing Contract ("RSC") in respect of 51 Blocks awarded under the Open Acreage
Licensing Policy (“OALP”) by the Government of India, out of which 5 blocks were relinquished during the previous year.
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 C 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 C 183 crore (US$ 25 million), i.e., 2.5% of the total estimated cost of initial
exploration phase of approx.C 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 C 80 crore (US$ 10 million) and maximum fee of C 160 crore (US$ 20 million)
per annum.
Accordingly, the Company has recorded a guarantee commission expense of C 123 crore ($ 15 million) (31 March 2023:
C 157 crore ($ 20 million)) for the year ended 31 March 2024 and C 58 crore ($ 7 million) (31 March 2023: C 75 crore
($ 9 million)) is outstanding as a pre-payment as at 31 March 2024.
624
625
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
40 Subsequent events
Subsequent to the year end, the Regional Controller of Mines, Bengaluru issued an order ("the Order") for temporary
suspension of mining operations for iron ore mines at Chitradurga, Karnataka, citing non-compliances with the approved
mining plan. The Company believes that there is no material impact from this Order, since the Company has sufficient
mining and evacuation capacity. The Company is confident of demonstrating compliance with the approved mining plan
and obtaining revocation of the said Order, as envisaged in the Order.
There are no other material adjusting or non-adjusting subsequent events, except as already disclosed.
41 (a) The Company has incurred gross amount of C 246 crore (31 March 2023: C 227 crore) towards Corporate Social
Responsibility (CSR) as per Section 135 of the Companies Act, 2013:
(C in crore)
Particulars
Year ended 31 March 2024
Year ended 31 March 2023
In- Cash
Yet to be
Paid in Cash
In- Cash
Yet to be
Paid in Cash
(a)
Gross amount required to be spend by the Company during the
year
107
112
(b)
Amount approved by the Board to be spent during the year
182
142
(c)
Amount spent on: *
i)
Construction/acquisition of assets
-
-
-
-
ii) On purposes other than (i) above (for CSR projects)
101
30
94
32
Total
101
30
94
32
* includes C 97 crore (31 March 2023: C 64 crore) paid to related party (Refer note 39)
Amount of expense excess spent
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening Balance
115
101
Amount spent during the year
131
126
Amount required to be spent during the year
(107)
(112)
Closing Balance*
139
115
*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
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Opening Balance
32
12
Provision made during the year
131
126
Payments made during the year
(133)
(106)
Closing Balance
30
32
Nature of CSR Expenses
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
Health and sanitation
17
19
Infrastructure development
22
55
Education sports and culture
50
33
National Initiatives and others
42
19
Utilisation of opening excess spent
115
101
Total
246
227
(b) Disclosures under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
(C in crore)
Particulars
Year ended
31 March 2024
Year ended
31 March 2023
(i) Principal amount remaining unpaid to any supplier as at the end of the accounting year
130
203
(ii) Interest due thereon remaining unpaid to any supplier as at the end of the accounting year
22
15
(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
-
-
(c) Loans and Advance(s) in the nature of Loans (Regulations 34 (3) and 53 (f) read together with Para A of
Schedule V of the SEBI (Listing Obligations and Disclosure Requirements), Regulations 2015 and Section
186(4) of the Companies Act, 2013):
(C in crore)
Name of the Company
Relationship
Balance as at
31 March 2024
Maximum
Amount
Outstanding
during the year
Balance as at
31 March 2023
Sesa Mining Corporation Limited ("SMCL") 2
Wholly owned Subsidiary
87
100
8
ESL Steel Limited
Subsidiary
387
389
132
Ferro Alloys Corporation Limited
Subsidiary
125
125
22
Malco Energy Limited ("MEL")
Wholly owned Subsidiary
340
450
449
Vizag General Cargo Berth Private Limited
Wholly owned Subsidiary
155
281
19
Meenakshi Energy Limited
Wholly owned Subsidiary
356
356
-
THL Zinc Ventures Ltd ("THLZVL")
Wholly owned Subsidiary
292
292
-
1
None of the loanee have made, per se, investment in the shares of the Company.
2
The Mumbai NCLT and Chennai NCLT had 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 SMCL. MCA statutory filing has been
completed on 18 January 2024 (Appointed date 01 October 2020).
Investments made by SRL in SMCL - 22,28,500 equity shares of C 100 each and Goa Maritime Private Limited - 5,000
equity shares of C 10 each.
626
627
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
Investment made by SMCL in Desai Cement Company Private Limited - 18,52,646 equity shares of C 10 each.
Investment made by MEL in Fujairah Gold FZC - 33,590,300 equity shares of AED 100 each.
Investments made by THLZVL in THL Zinc Ltd - 1,000 ordinary shares of $ 1 each, 90,000 ordinary shares of $ 100
each and 70,00,000 OCRPS of $ 1 each.
3
During the year ended 31 March 2024, the Company has created charge over the below assets in respect of
borrowings availed by its wholly owned subsidiaries:
i)
13,94,35,527 equity shares of HZL, 89,001 equity shares of THLZVL and 37,38,000 equity shares of THL Zinc
Holding BV having an aggregate carrying amount of C 2,257 crore against the loan facility of US$ 900 million
availed by THLZVL.
ii)
12,50,000 equity shares of SRL having a net aggregate carrying amount of C 7 crore and movable fixed assets
of the Company and certain intangible assets to the extent of 1x of the outstanding NCDs amounting to C 1,600
crore issued by SRL.
4
Details of investments made and guarantees provided are given in Note 6 and Note 38B, respectively.
5
The underlying loans have been given for business purpose.
(d) The Company has used accounting software for maintaining its books of account which has a feature of recording
audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the
software except that audit trail feature is not enabled in the SAP application for direct changes to data in certain database
tables, which is restricted to certain IDs with system administrator user access in order to optimise system performance.
However, these system administrator rights have been disabled subsequent to the year end. Further, no instance of audit
trail feature being tampered with was noted in respect of software.
42 Financial ratios are as follows:
Ratio
As at
31 March 2024
As at
31 March 2023*
% Variance
1
Current Ratio (in times)
0.67
0.70
(4%)
2
Debt-Equity Ratio (in times)
0.64
0.60
7%
3
Debt Service Coverage Ratio (in times) a
1.29
2.76
(53%)
4
Return on Equity Ratio (%) b
11%
31%
(64%)
5
Inventory turnover Ratio (in times)
7.55
6.92
9%
6
Trade Receivables turnover Ratio (in times)
27.87
22.90
22%
7
Trade payables turnover Ratio (in times)
10.48
10.33
1%
8
Net capital turnover Ratio (in times)
**
**
**
9
Net profit Ratio (%) c
11%
34%
(68%)
10
Return on Capital employed (%) d
9%
6%
53%
11
Return on investment (%) e
1.27%
3.71%
(66%)
*Restated, refer note 3(d)(i)
**Net working capital is negative
Formulae for computation of ratios is as follows:
Ratio
Formula
1
Current Ratio (in times)
Current Assets/ Current Liabilities (excluding current maturities of long-term
borrowing)
2
Debt-Equity Ratio (in times)
Gross Debt/ Total Equity
3
Debt Service Coverage Ratio (in times)
Income available for debt service/ (interest expense and principal payments
of long term loans), where income available for debt service = Profit before
exceptional items and tax + Depreciation, depletion and amortisation expense +
Interest expense
4
Return on Equity Ratio (%)
Net Profit after tax before exceptional items (net of tax)/ Average Equity
5
Inventory turnover Ratio (in times)
(Revenue from operations+ Other operating income) less EBITDA/ Average
Inventory
6
Trade Receivables turnover Ratio (in times)
(Revenue from operations+ Other operating income)/ Average Trade Receivables
7
Trade payables turnover Ratio (in times)
Total Purchases/ Average Trade Payables
8
Net capital turnover Ratio (in times)
(Revenue from operations+ Other operating income)/ Working capital (WC), where
WC = Current Assets - Current Liabilities (excluding current maturities of long-
term borrowing)
9
Net profit Ratio (%)
Net Profit after tax before exceptional items (net of tax)/ (Revenue from operations
+ Other operating income)
10
Return on Capital employed (in times)
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 Service Coverage Ratio has decreased due to decrease in net profits during the current year.
b.
The Return on Equity Ratio has decreased due to decrease in net profits during the current year.
c.
The Net Profit Ratio has decreased due to decrease in net profits during the current year.
d.
The Return on Capital employed has increased due to increase in operating profits during the current year.
e.
The Return on investment has decreased as there has been decrease in current investments during the year.
43 Oil & gas reserves and resources
The Company's gross reserve estimates are updated atleast annually based on the forecast of production profiles,
determined on an asset-by-asset basis, using appropriate petroleum engineering techniques. The estimates of reserves
and resources have been derived in accordance with the Society for Petroleum Engineers “Petroleum Resources
Management System (2018)". The changes to the reserves are generally on account of future development projects,
application of technologies such as enhanced oil recovery techniques and true up of the estimates. The management’s
internal estimates of hydrocarbon reserves and resources at the year end, are as follows:
Particulars
Country
Gross proved and probable
hydrocarbons initially in place
Gross proved and probable
reserves and resources
Net working interest proved and
probable reserves and resources
(mmboe)
(mmboe)
(mmboe)
As at
31 March 2024
As at
31 March 2023
As at
31 March 2024
As at
31 March 2023
As at
31 March 2024
As at
31 March 2023
Rajasthan Fields
India
5,210
4,806
1,107
933
388
327
Ravva Fields
India
704
704
14
18
3
4
KG-ONN fields
India
260
292
31
36
15
20
CBOS/2 Fields
India
298
298
31
22
12
9
Other fields
India
579
561
193
146
193
146
Total
7,051
6,661
1,376
1,155
611
506
628
629
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
NOTES
forming part of the financial statements as at and for the year ended 31 March 2024
The Company’s net working interest proved and probable reserves is as follows:
Particulars
Proved and probable
reserves
Proved and probable reserves
(developed)
Oil
(mmstb)
Gas
(bscf)
Oil
(mmstb)
Gas
(bscf)
Reserves as of 31 March 2022*
108
106
69
64
(Revisions)/ additions during the year
(5)
7
9
16
Production during the year
(15)
(19)
(15)
(19)
Reserves as of 31 March 2023**
88
94
63
61
(Revisions)/ additions during the year
(2)
(0)
4
22
Production during the year
(13)
(19)
(13)
(19)
Reserves as of 31 March 2024***
73
75
54
64
* 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)
*** Includes probable oil reserves of 23.97 mmstb (of which 10.84 mmstb is developed) and probable gas reserves of 21.49 bscf (of which
20.10 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
44 Other matters
a)
The Company purchases bauxite under long term linkage ("LTL") arrangement with Orissa Mining Corporation Ltd (hereafter
referred as “OMC”) at provisional price of C 1,000/MT from October 2020 onwards based on interim order dated 08 October
2020 of the Hon’ble High Court of Odisha, which is subject to final outcome of the writ petition filed by the Company.
The last successful e-auction based price discovery was done by OMC in April 2019 at C 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 C 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 C 281 crore on the Company towards differential pricing and interest for bauxite supplied
till September 2020 considering the auction base price of C 1,707/MT.
The Company had then filed a writ petition before Hon’ble High Court ("HC") of Odisha in September 2020, which issued 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 C 1,000/MT and furnishing an undertaking for the differential amount, subject to final outcome of
the writ petition.
OMC re-conducted e-auction on 09 March 2021 with floor price of C 2,011/MT, which again was not successful. On 18
March 2021, Cuttack HC issued an order that the current arrangement of bauxite price @ C 1000/MT will continue for the
FY 2021-22. Further, on 06 April 2022, the Hon’ble Cuttack HC directed that the current arrangement will continue for the
FY 2022-23 also.
An interim application was filed on 11 May 2023 in Odisha High Court seeking directions for OMC to continue the supplies
for FY 2023-24 and extend the LTL agreement. Honourable Odisha High Court vide order dated 15 May 2023, passed an
order that unless the fresh agreement is not executed interim arrangement cannot be granted. Accordingly, as per the
direction of honourable court, LTL was executed with OMC on 16 May 2023 for supply of 2.4 MT bauxite annually at a
price of C 1000/MT. On 26 September 2023, OMC conducted the 10th National e-auction tender for sale of 300 KT bauxite
at floor price of C 2,429/MT after considering the pricing as per Rule 45 of the Rules. The said auction was not successful
since no participation was observed in the bidding.
Supported by legal opinions, management believes that the provisions of Rule 45 of the Rules are not applicable to
commercial sale of bauxite ore and hence, it is not probable that the Company will have any financial obligation towards
the aforesaid commitments over and above the price of C 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 C 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 infrastructure is to be
modified or new equipments have to be installed. The Company is required to comply with the norms by 31 December
2026 via MoEF&CC’s notification dated 05 September 2022.
45 Other Statutory Information
a)
The Company does not have any material transactions with companies struck off as per the Companies Act, 2013.
b)
The Company does not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
c)
The Company has not been declared wilful defaulter by any bank or financial institution or other lender.
d)
The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
e)
The Company has not traded or invested in Crypto currency or Virtual currency during the financial year.
f)
The Company does not have any 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).
As per our report of even date
For and on behalf of the Board of Directors
For S.R. Batliboi & Co. LLP
Navin Agarwal
Arun Misra
Chartered Accountants
ICAI Firm Registration No. 301003E/E300005
Executive Vice-Chairman and
Whole-Time Director
Executive Director
(Whole-Time Director)
DIN 00006303
DIN 01835605
Place: Mumbai
Place: New Delhi
per Vikas Pansari
Ajay Goel
Prerna Halwasiya
Partner
Chief Financial Officer
Company Secretary and Compliance Officer
Membership No: 093649
PAN AEAPG8383C
ICSI Membership No. A20856
Place: Mumbai
Place: New Delhi
Place: New Delhi
Date: 25 April 2024
Date: 25 April 2024
630
631
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
CORPORATE OVERVIEW
STATUTORY REPORTS
Standalone
FINANCIAL STATEMENTS
ABBREVIATIONS
2C
Contingent Resources
2P
Total Proved and Probable Resources
3P
Proved, Probable and Possible
ABH
Aishwariya Barmer Hill
ACC
Associated Cement Companies
ACT-UP
Accelerated Tracking and Upgradation Process
ADAS
Advanced Driver Assistance Systems
ADB
Asian Development Bank
AGIs
Above Ground Installations
AI
Artificial Intelligence
AIML
Artificial Intelligence and Machine Learning
AOTS
Association for Overseas Technical Cooperation and
Sustainable Partnerships
APC
Advanced Process Control
APH
Air Pre-heaters
ASP
Alkaline Surfactant Polymer
ASSOCHAM
The Associated Chambers of Commerce & Industry
of India
BALCO
Bharat Aluminium Company Limited
BCG
Boston Consulting Group
BESS
Battery Energy Storage Systems
BEV
Battery Electric Vehicles
BFSI
Banking, Financial Services and Insurance
BHP
Broken Hill Proprietary
BMC
Brihanmumbai Municipal Corporation
BMM
Black Mountain Mining
BOA
Biodiversity Offset Agreement
boe
Barrel of Oil Equivalent
Boz
Billion Ounces
BR
Business Rescue
BRSR
Business Responsibility and Sustainability Reporting
BSF
Border Security Force
BU
Business Unit
CA
Chartered Accountant
CAGR
Compound Annual Growth Rate
CAP
Climate Action Programme
CAPA
Corrective and Preventive Actions
CAPEX
Capital Expenditure
CBCE
Code of Business Conduct and Ethics
CCOE
Cairn Centre of Excellence
CCP
Charge Chrome Plant
CCQC
Chapter Convention on Quality Concepts
CCUS
Carbon Capture, Utilisation and Storage
CDP
Carbon Disclosure Project
CEA
Central Electricity Authority
CEC
Cairn Enterprise Centre
CEDEP
Le Centre Européen d'Education Permanente
CEIC
Centre for the Study of Education in an International
Context
CEO
Chief Executive Officer
CEP
Condensate Extraction Pump
CFO
Chief Financial Officer
CHRO
Chief Human Resource Officer
CIHL
Cairn India Holdings Limited
CII
Confederation of Indian Industry
CLZS
Chanderiya Lead Zinc Smelter
CMIE
Centre for Monitoring Indian Economy
CO2e
Carbon Dioxide Equivalent
COD
Committee of Directors
CoP
Cost of Production
CPI
Consumer Price Index
CPP
Captive Power Plant
CRM
Critical Risk Management
CSM
Contractor Safety Management
CSR
Corporate Social Responsibility
CTO
Chief Technology Officer
CXO
Chief Experience Officer
CY
Calendar Year
DAERDLR
Department of Agriculture, Environmental Affairs,
Rural Development and Land Reform
DAs
Development Areas
DC
Designated Consumer
DEI
Diversity, Equity, and Inclusion
DGH
Directorate General of Hydrocarbons
DGMS
Director General of Mines Safety
DJSI
Dow Jones Sustainability Indices
DSC
Dariba Smelting Complex
DSF
Discovered Small Field
EBITDA
Earnings before interest, taxes, depreciation, and
amortisation
EIA
Energy Information Administration
EMPS
Electric Mobility Promotion Scheme
EOR
Engineer of Records
EPC
Engineering, Procurement, and Construction
EPS
Earnings Per Share
ESG
Environmental, Social and Governance
ESL
Electrosteel Limited
ETP
Effluent Treatment Plant
EU
European Union
EVs
Electric Vehicles
ExCos
Executive Committees
FACOR
Ferro Alloys Corporation Limited
FCF
Free Cash Flow
FGD
Flue Gas Desulfurization
FICCI
Federation of Indian Chambers of Commerce &
Industry
FIM
Free Issue Material
FMCG
Fast-moving Consumer Goods
FPO
Farmer Producer Organisation
FSIPP
Fatality and Serious Injury Prevention
FTE
Full-time Equivalent
FTSE
Financial Times Stock Exchange
FY
Financial Year
G20
Group of Twenty
GDP
Gross Domestic Product
GE
General Electronics
GHG
Greenhouse Gas
GISTM
Global Industry Standard on Tailing Management
GJ
Giga Joule
GoI
Government of India
GPS
Global Positioning System
GRI
Global Reporting Initiative
GRMC
Group Risk Management Committee
GW
Giga Watt
HCFC
High Carbon Ferro Chrome
HDH
Hemidihydrate
HIV
Human Immunodeficiency Virus
HR
Human Resource
HRD
Human Resource Development
HSD
High-speed Diesel
HSE
Health, Safety and Environment
HVLT
High Volume Low Toxicity
HZAPL
Hindustan Zinc Alloys Private Limited
HZL
Hindustan Zinc Limited
IBAT
Integrated Biodiversity Assessment Tool
IBBI
Indian Biodiversity Business Initiative
ICMM
International Council on Mining and Metals
ICOFR
Internal Control Over Financial Reporting
ICP
Internal carbon pricing
ICSI
Institute of Company Secretaries of India
IEX
Indian Energy Exchange
IFC
International Finance Corporation
IIM
Indian Institute of Management
IIME
Indian Institute of Mineral Engineers
IIP
Index of Industrial Production
IIRC
International Integrated Reporting
IM
Incident Management
IMF
International Monetary Fund
Ind AS
Indian Accounting Standards
IOB
Iron Ore Business
IOG
Iron Ore Goa
IOK
Iron Ore Karnataka
IPP
Independent Power Producer
IR
Integrated Reporting
ISA
International Safety Award
ISO
International Organization for Standardization
IT
Information Technology
ITES
Information Technology Enabled Services
ITGC
IT General Control
ITMS
Intelligent Traffic Management System
IUCN
International Union for Conservation of Nature
IZA
International Zinc Association
J&K
Jammu & Kashmir
JV
Joint Venture
kboepd
thousand barrels of oil equivalent per day
kg
kilogram
km
kilometre
KPI
Key Performance Indicator
KRA
Key Responsibility Area
kt
Kilo Tonnes
KTPA
Kilo-Tonnes Per Annum
kWh
Kilowatt hours
LBMA
London Bullion Market Association
LED
Light-emitting Diode
LF
Lower Fatehgarh
LGBTQIA+
Lesbian, Gay, Bisexual, Transgender, Queer or
Questioning Persons, Intersex, Asexual or the
Community
LME
London Metal Exchange
LMV
Light Motor Vehicle
LTIFR
Lost Time Injury Frequency Rate
M&A
Mergers and Acquisitions
MALCO
The Madras Aluminium Company Limited
ManCom
Management Committee
MAS
Management Assurance Services
mb/d
million barrels per day
MBA
Master of Business Administration
MEAI
Mining Engineers Association of India
MEMC
Mines Environment and Mineral Conservation
MGMI
Mining Geological & Metallurgical Institute of India
MHU
Mobile Healthcare Units
MiC
Metal in Concentrate
mmboe
Million barrels of oil equivalent
mn
Million
mnt
Million tonnes
MOEF
Ministry of Environment, Forest
MoPnG
Ministry of Petroleum and Natural Gas
MOSPI
Ministry of Statistics and Program Implementation
MoU
Memorandum of Understanding
Moz
Million Ounces
MSCI
Morgan Stanley Capital International
MSME
Ministry of Micro, Small & Medium Enterprises
MTPA
Metric Tonnes Per Annum
MVA
Mega Volt Amps
MW
Megawatt
NCLT
National Company Law Tribunal
NDRF
National Disaster Response Force
NELP
New Exploration and Licensing Policy
NEP
Net Effective Premium
NGO
Non-governmental Organization
NHAI
National Highway Authority of India
NIP
National Infrastructure Pipeline
NITI
National Institution for Transforming India
NMP
National Master Plan
NNL
No Net Loss
NOC
No Objection Certificate
NPI
Net Positive Impact
NSO
National Statistical Office
NTFP
Non-timber Forest Products
NWPI
Net Water Positive Index
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
632
ABBREVIATIONS
633
O&M
Operations and Maintenance
OALP
Open Acreage Licensing Programme
OECD
Organization for Economic Cooperation and
Development
OEM
Original Equipment Manufacturer
OHSAS
Occupational Health and Safety Assessment
Specification
OMS
Operational Maintenance and Surveillance
OPEC
Organization of the Petroleum Exporting Countries
OPEX
Operating Expenses or Expenditure
OSPCB
Odisha State Pollution Control Board
PAT
Profit After Tax
PDA
Power Delivery Agreements
PGDM
Post Graduate Diploma in Management
PLF
Plant Load Factor
PLI
Production Linked Incentive Scheme
PM
Particulate Matter
PMI
Purchasing Manager's Index
PNGRB
Petroleum and Natural Gas Regulatory Board
PSC
Production Sharing Contract
PTS
Plant Technical System
PV
Photovoltaics
PWD
Public Works Department
PXIL
Power Exchange India Limited
R&D
Research and Development
R&R
Reserves & Resources
RBI
Reserve Bank of India
RCM
Risk Control Matrix
RDG
Raageshwari Deep Gas
RE
Renewable Energy
RE RTC
Round the Clock Renewable Energy
RFID
Radio Frequency Identification
ROCE
Return on Capital Employed
ROM
Run of Mine
RoW
Rest of the World
RRR
Reserve Requirement Ratio
RRRT
Regional Rights Resource Team
RTC
Round-The-Clock
SBTi
Science Based Targets initiative
SBTN
Science Based Targets for Nat
SBU
Strategic Business Unit
SCADA
Supervisory Control and Data Acquisition
SDG
Sustainable Development Goals
SEBI
Securities and Exchange Board of India
SEG
Similar Exposure Group
SEL
Sterlite Energy Ltd
SFSS
Semi Fire Suppression System
SHFE
Shanghai Futures Exchange
SOPs
Standard Operating Procedures
SOx
Sulphur Oxides
SPL
Spent Pot Lining
SPSC
Social Performance Steering Committee
SR
Sustainability Report
SRP
Standard Rules and Procedure
STEM
Science, Technology, Engineering, And Mathematics
TACO
The Animal Care Organization
TAT
Turnaround Time
TC/RC
Treatment Charges and Refining Charges
TCE
Tata Consulting Engineers
TCFD
Taskforce on Climate-related Financial Disclosures
tCO2e
Tonnes of carbon dioxide equivalent
TERI
The Energy and Resources Institute
THL
Twin Star Holdings Limited
TMF
Tailings Management Facility
TMILL
TM International Logistics Limited
TMT
Thermo Mechanically Treated
TNFD
Taskforce on Nature-Related Financial Disclosures
TPA
Tonnes per Annum
TPP
Trans-Pacific Partnership
TQM
Total Quality Management
TRIFR
Total Recordable Injury Frequency Rate
TSF
Tailing Storage Facility
TSPL
Talwandi Sabo Power Limited
TTR
Tax Transparency Report
TUV SUD
Technischer Überwachungsverein
UAE
United Arab Emirates
UDAN
Ude Desh ka Aam Naagrik
UF
Upper Fatehgarh
UK
United Kingdom
UNEP
United Nations Environment Programme
UNFCCC
The United Nations Framework Convention on
Climate Change
UNGC
United Nations Global Compact
US
United States
US$
United States Dollar
USGS
United States Geological Survey
VAB
Value Added Businesses
VAL
Vedanta Aluminium Limited
VALJ
Vedanta Aluminium Jharsuguda
VAP
Value Added Products
VCT
Voluntary Counselling and Testing
VEDL
Vedanta Limited
VFD
Variable Frequency Drive
VGCB
Vizag General Cargo Berth
VGCB
Vizag General Cargo Berth
VPA
Visakhapatnam Port Authority
VPSHR
Voluntary Principles on Security and Human Rights
VSAP
Vedanta Sustainability Assurance Programme
VSF
Vedanta Sustainability Framework
WBCSD
The World Business Council for Sustainable
Development
WCL
Western Coalfields Limited
WEO
World Economic Outlook
WRI
World Resource Institute
XLRI
Xavier School of Management
YODA
Youth Organisation in Defence of Animals
Y-o-Y
Year on Year
YTD
Year to Date
YUVA
Young Upcoming Vedanta Achievers
ZLD
Zero Liquid Discharge
VEDANTA LIMITED
Integrated Report and Annual Accounts 2023-24
634
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Chakala, Andheri (E), Mumbai - 400 093, Maharashtra
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