n) Provision

Provisions are recognized when the Company has a
present obligation (legal or constructive), as a result
of past events, and it is probable that an outflow of
resources, that can be reliably estimated, will be required
to settle such an obligation. If the effect of the time value
of money is material, provisions are discounted using a
current pre-tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting is used,
the increase in the provision due to the passage of time
is recognised as a finance cost. Provisions are reviewed
at each reporting date and are adjusted to reflect the
current best estimate.

(i) Provision for Decommissioning

The Company recognizes a provision for
decommissioning costs of smelting and refining
facilities. Decommissioning costs are provided at
the present value of expected costs to settle the
obligation using estimated cash flows and are
recognized as part of the cost of the particular
asset. The cash flows are discounted at pre-tax rate
that reflects the risks specific to the liability. The
unwinding of the discount is expensed as incurred
and recognized in the Statement of Profit and Loss
as a finance cost. Changes in the estimated future
costs or in the discount rate applied are added to or
deducted from the cost of the asset.

(ii) Provision for Restoration, rehabilitation and
environmental costs

An obligation to incur restoration, rehabilitation and
environmental costs arises when environmental
disturbance is caused by the development or on¬
going production of a mine. Such costs, discounted
to net present value, are provided for and a
corresponding amount is capitalized at the start of
each project as mining properties, 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 (considered as finance cost). 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 as per the depreciation policy .

Costs for the restoration of subsequent site
damage, which is caused on an on-going basis
during production, are 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.

o) Foreign currency translation

The company's financial statements are prepared in INR
which is its functional currency.

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.

p) Earnings per share

The Company presents basic and diluted earnings per
share (“EPS”) data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the year. 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.

q) Segment reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
Chief Operating Decision-Maker i.e. CEO. Revenue
and expenses are identified to segments on the basis
of their relationship to the operating activities of the
segment. Revenue, expenses, assets and liabilities
which are not allocable to segments on a reasonable
basis, are included under “Unallocated revenue/
expenses/ assets/ liabilities”.

r) Leases

The Company assesses at contract inception whether a
contract is, or contains, 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.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except for
short-term leases and leases of low-value assets. The
Company recognises lease liabilities to make 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. Refer to the
accounting policies in section (g) Impairment of
non-financial assets.

Right-of-use assets are depreciated on a straight¬
line basis over lease term (ranging upto 20 years for
underlying assets other than land) or the estimated
useful lives of the assets in case the company has
option and is reasonable to acquire the asset after
the completion of lease term.

(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. 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.

(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.

s) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank
and on hand and short-term money market deposits
with original maturities of three months or less that are
readily convertible to known amounts of cash and which
are subject to an insignificant risk of change 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) Operational buyers’ credit/suppliers’ credit

The Company enters into arrangements where by
banks and financial institutions make direct payments
to suppliers for goods and services. The banks and
financial institutions are subsequently repaid by the
Company at a later date providing working capital
timing benefits. These are normally settled up to
twelve months from the date of agreement . Where
these arrangements are for goods used in the normal
operations of the company 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 instiutions
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 cash
outflow from operating activity reflecting the substance
of the payment.

u) Provisions, contingent liabilities and contingent assets

The assessments undertaken in recognising provisions
and contingencies have been made in accordance with
the applicable Ind AS.

Provisions represent liabilities for which the amount or
timing is uncertain. Provisions are recognized when the
Company has a present obligation (legal or constructive),
as a result of past events, and it is probable that an
outflow of resources, that can be reliably estimated, will
be required to settle such an obligation.

I f the effect of the time value of money is material,
provisions are determined by discounting the expected

future cash flows to net present value using an
appropriate pre-tax discount rate that reflects current
market assessments of the time value of money and,
where appropriate, the risks specific to the liability.
Unwinding of the discount is recognized in Statement of
profit and loss as a finance cost. Provisions are reviewed
at each reporting date and are adjusted to reflect the
current best estimate.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the
Company or a present obligation that is not recognised
because it is not probable that an outflow of resources
will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there
is a liability that cannot be recognised because it cannot
be measured reliably. The Company does not recognize
a contingent liability but discloses its existence in
the Balance Sheet.

I n the normal course of business, contingent liabilities
may arise from litigation and other claims against
the Company. There are certain obligations which
management has concluded, based on all available
facts and circumstances, are not probable of payment
or are very difficult to quantify reliably, and such
obligations are treated as Contingent liabilities and
disclosed in the notes but are not reflected as liabilities
in the financial statements. Although there can be no
assurance regarding the final outcome of the legal
proceedings in which the Company is involved, it is not
expected that such contingencies will have a material
effect on its financial position or profitability.

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
recognized on the balance sheet but disclosed in the
financial statement.

v) Exceptional Items

Exceptional items are those items that management
considers, by virtue of their size, nature or incidence,
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. Such items
are material by nature or amount to the year's results
and require separate disclosures 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 28.

3. (II) CHANGES IN ACCOUNTING POLICIES AND
DISCLOSURES

New and amended standards

The company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after April 01, 2025. The company
has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective.

(i) Ind AS 21 - Lack of exchangeability

The Ministry of Corporate Affairs (MCA) notified
the Companies (Indian Accounting Standards)
Amendment Rules, 2025, which amend Ind AS
21, The Effects of Changes in Foreign Exchange
Rates to specify how an entity should assess
whether a currency is exchangeable and how
it should determine a spot exchange rate when
exchangeability is lacking. The amendments also
require disclosure of information that enables users
of its financial statements to understand how the
currency not being exchangeable into the other
currency affects, or is expected to affect, the
entity's financial performance, financial position
and cash flows.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2025.

The amendments do not have any impact on the
Company's financial statements.

(ii) Ind AS 1 - Classification of Liabilities as

Current or Non-current and Non-current
Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to specify the
requirements for classifying liabilities as current or
non-current. The amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of the
reporting period

• That classification is unaffected by the likelihood
that an entity will exercise its deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification

In addition, a requirement has been introduced
to require disclosure when a liability arising
from a loan agreement is classified as
non-current and the entity's right to defer
settlement is contingent on compliance with
future covenants within twelve months.

If there is a breach of a material covenant of a
long term loan arrangement on or before the end
of the reporting period, resulting in the liability
becoming payable on demand as at the reporting
date, and the lender agrees—after the reporting
period but before the financial statements are
approved for issue—not to demand repayment
for at least 12 months as a consequence of the
breach, this shall be treated as an adjusting event.
Accordingly, the entity is not required to classify the
liability as current.

The amendments are effective for annual reporting
periods beginning on or after April 01,2025.

(iii) Ind AS 7 and Ind AS 107 - Supplier Finance
Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures to
clarify the characteristics of supplier finance
arrangements and require additional disclosure of
such arrangements. The disclosure requirements
in the amendments are intended to assist users of
financial statements in understanding the effects
of supplier finance arrangements on an entity's
liabilities, cash flows and exposure to liquidity risk.

As a result of implementing the amendments, the
Company has provided additional disclosures
about its supplier finance arrangement.

Please refer to Note 19 and Note 35.

(iv) Ind AS 12 - International Tax Reform-Pillar Two
Model Rules

I n August 2025, the MCA notified amendments to
Ind AS 12 Income Taxes in response to the OECD's
BEPS Pillar Two rules and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred taxes
arising from the jurisdictional implementation
of the Pillar Two model rules; and

• Disclosure requirements for affected entities
to help users of the financial statements better
understand an entity's exposure to Pillar Two
income taxes arising from that legislation,
particularly before its effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately. The remaining disclosure
requirements apply for annual reporting periods
beginning on or after April 01, 2025, but not for any
interim periods ending on or before March 31,2026.
The amendments had no impact on the Company's
financial statements as the Company is not in scope
of the Pillar Two model rules.”

Standards notified but not yet effective

The amendments to the standards that are notified
by the Ministry of Corporate Affairs (MCA), but not yet
effective, up to the date of issuance of the Company's
financial statements are disclosed below. The Company
will adopt these amendments to the standards, when
they become effective.

(i) I nd AS 1 - Classification of Liabilities as Current
or Non-current and Non-current Liabilities
with Covenants and Ind AS 10 Events after the
Reporting Period

Ind AS 10 has been amended to remove the
previous treatment under which a lender's post
reporting date waiver-granted before the financial
statements were approved for issue-of a breach of
a material covenant in a long term loan arrangement
that occurred on or before the end of the reporting
period, resulting in the liability becoming payable
on demand at the reporting date, was regarded as
an adjusting event.

For annual reporting periods beginning on or after
April 01, 2026, any breach of a Covenant whether
material or immaterial occurring on or before the
reporting date will, in accordance with Ind AS 1,
require the related liability to be classified as
current, unless the lender has granted a waiver of
the breach on or before the reporting date and has
agreed not to demand repayment for at least 12
months after the reporting date as a consequence
of the breach. Such a waiver shall be treated as an
adjusting event.

The amendments are effective for annual reporting
periods beginning on or after April 01, 2026
retrospectively in accordance with Ind AS 8.

3. (III) SIGNIFICANT ACCOUNTING ESTIMATE AND
JUDGEMENT

The preparation of the standalone 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
amount of assets, liabilities, income, expenses and
disclosures of contingent liabilities at the date of these
financial statements. Actual results may differ from these
estimates under different assumptions and conditions.

The management believes that the estimates used in
preparation of the standalone financial statements are
prudent and reasonable. Information about estimates
and judgments made in applying accounting policies
that have the most significant effect on the amounts
recognized in the standalone financial statements
are as follows:

(A) Significant Estimates

(i) Mining property and Ore reserve

Ore reserves and mineral resource estimates
are estimates of the amount of ore that can be
economically and legally extracted from the
Company's mining properties. The Company
estimates its ore reserves and mineral resources
based on information compiled by appropriately
qualified persons relating to the geological and
technical data on the size, depth, shape and grade
of the ore body and suitable production techniques
and recovery rates. Such an analysis requires
complex geological judgements to interpret the
data. The estimation of recoverable reserves is
based upon factors such as estimates of foreign
exchange rates, commodity prices, future capital
requirements and production costs, along with
geological assumptions and judgements made in
estimating the size and grade of the ore body. As
a consequence of such an assessment made at the
end of the current year, the Company has added
new reserves and there is no material impact on the
depreciation charge for the year due to this change.

(ii) Restoration, rehabilitation and environmental
costs:

Provision is made for costs associated with
restoration and rehabilitation of mining sites as
soon as the obligation to incur such costs arises.
Such restoration and closure costs are typical of
extractive industries and they are normally incurred
at the end of the life of the mine fields. The costs
are estimated on bi-annual basis on the basis
of mine closure plans with the help of third party
experts and the estimated discounted costs of
dismantling and removing these facilities and the
costs of restoration are capitalized when incurred
reflecting the Company's obligations at that time.
The Company has not considered salvage value
for the estimates of provision for decommissioning
calculated as at March 31, 2026.

The provision for decommissioning liabilities
(refer Note 17) is based on the current estimate
of the costs for removing and decommissioning
producing facilities, the forecast timing of
settlement of decommissioning liabilities and the
appropriate discount rate.

(iii) Assessment of useful lives and consumption
pattern of Property, Plant and Equipment:

The Company reviews the useful lives and
consumption pattern of Property, Plant and
Equipment at the end of each reporting period.
(please refer Note 3(1)(e)(iv).

(iv) Climate Change

The Company aims to achieve net-zero emissions
by 2050 or sooner & committed to reduce its GHG
emission (Scope-1 & 2) by 50% & Scope 3 by 25%
by 2030 from 2020 baseline, reduce freshwater use
by 50% from the 2020 baseline and secure 100%
treated sewage water for smelting operations to
enhance water availability in shared watersheds
as part of their climate mitigation and adaptation
efforts and sustainability strategy. The Company
conducted climate risk assessment and outlined its
risks and opportunities in climate report. 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, impact due to transition to a low-
carbon economy, disruption to the supply chain,
physical risk 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, (c) review of estimates of useful
lives of property, plant and equipment, (d) assets
and liabilities carried at fair value, etc.

The Company's strategy consists of mitigation and
adaptation measures and 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 (530 MW power delivery
agreement (‘PDA')) signed on a group captive basis,
fuel switch, electrification of vehicles and mining
fleet and energy efficiency opportunities. However,
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
have also taken certain measures towards water
management such as commissioning of effluent
and water treatment plants, sewage treatment
plant, filtered tailing plant, rainwater harvesting,

thus reducing freshwater consumption. These
initiatives are aligned with the Company'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 the Company's climate change
strategy, changes in environmental laws and
regulations and global decarbonization 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 30.

For other significant litigations where the possibility
of an outflow of resources embodying economic
benifits is remote, refer Note 30.

(1) During the year ended March 31,2023, the Company had entered into Power delivery agreement (‘PDA 1 ’) with Serentica Renewables India 4 Private
Limited (‘Serentica 4’) for sourcing of 200 MW (contracted capacity) renewable power on round the clock (‘RTC’) basis under group captive arrangement
for 25 years. Under the terms of the PDA, the Company is expected to infuse equity of ' 350 Crore for a minimum of twenty six percent in Serentica 4.
During the current year, the Company has made an investment of Nil (March 31, 2025: Nil) in Optionally Convertible Redeemable Preference Shares
(‘OCRPS’) and pending committed investment of ' 70 Crore will be made basis fulfilment of conditions of the PDA 1. Out of the total investment, ' 56
Crore worth of OCPRS are converted into equity shares of Serentica 4 as per terms of the PDA 1 in previous year. All of the Company’s investments
in Serentica 4 have been pledged by Serentica Group for financing the project as per the terms of the PDA 1. As at March 31, 2026, the Company has
invested ' 280 Crore (March 31, 2025 : ' 280 Crore).

(2) During the year ended March 31, 2023, the Company had entered into Power delivery agreement (‘PDA 2’) with Serentica Renewables India 5 Private
Limited (‘Serentica 5’) for sourcing of 250 MW (contracted capacity) renewable power on round the clock (‘RTC’) basis under group captive arrangement
for 25 years. Under the terms of the PDA 2, the Company is expected to infuse equity of ' 438 Crore for a minimum of twenty six percent in Serentica 5.
During the current year, the Company has made an investment of Nil (March 31, 2025: ' 230 Crore) in Optionally Convertible Redeemable Preference
Shares (‘OCRPS’) and pending committed investment of ' 77 Crore will be made basis fulfilment of conditions of the PDA 2. Out of the total investment,
' 33 Crore worth of OCPRS are converted into equity shares of Serentica 5 as per terms of the PDA 2 in previous year. As at March 31, 2026, the
Company has invested ' 361 Crore (March 31, 2025 : ' 361 Crore).

(3) During the previous year, the Comapny has entered into Power delivery agreement (‘PDA 3’) with Serentica Renewables India 14 Private Limited
(‘Serentica 14’). With this, the Company will source upto 530 MW (contracted capacity including earlier PDAs and higher guaranteed availability)
renewable power on Round The Clock (RTC) basis under group captive arrangement for 25 years. Under the terms of the PDA 3, the Company
is expected to infuse equity of ' 327 Crore for a minimum of twenty six percent in Serentica 14. During the current year, the Company has made
an investment of ' 278 Crore (March 31, 2025: Nil) in Optionally Convertible Redeemable Preference Shares (‘OCRPS’) and pending committed
investment of ' 49 Crore will be made basis fulfilment of conditions of the PDA 3. As at March 31, 2026, the Company has invested ' 278 Crore (March
31, 2025 : Nil).

(March 31,2025: ' 1,101 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. Entire revenue from
contract with customers is recorded at a point in time and includes ' 1,149 Crore (March 31,2025 : ' 1,537 Crore) for which
contract liabilities existed at the beginning of the year. Contract liabilities as at March 31, 2026 are ' 526 Crore. 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 six months.

On November 21,2025 , the Government of India notified four new Labour Codes (the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial
Relations Code, 2020 and the Occupational Safety, Health and Working Conditions Code,2020) consolidating 29 existing labour laws. The Ministry of
Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations. The Company
has considered restructured compensation of its employees with effect from April 1, 2026, and assessed and accounted for the incremental impact of these
changes, with the guidance provided by the Ministry of Labour & Employment and Institute of Chartered Accountants of India (Refer Note 28 for impact on
account of new labour code).

(1) Includes ' 6 Crore (March 31,2025: ' 6 Crore) towards salaries and wages of personnel specifically engaged for Company’s CSR activities , and ' 29
Crore (March 31, 2025: ' 27 Crore) towards expenses relating to company run schools, hospitals and other related activities, incurred for the purpose
of corporate social responsibility expenditure

(2) The immediate parent company had 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 March 31, 2026 and year ended March 31, 2025 includes business performance based, sustained individual performance based, management
discretion and fatality multiplier based stock options. Business performances will be measured using Volume, Cost, Net Sales Realisation, EBITDA,
Free Cash Flows, ESG and Carbon footprint or a combination of these for the respective business/SBU entities. The exercise price of the options is ' 1
per share and the performance period is three years, with no re-testing being allowed.

Further, in accordance with the terms of the arrangement between the immediate parent and the company, the cost recognised towards ESOS scheme
is recovered by the Parent from the Company.

(1) Future cash out flows in respect of the above matters are determinable only on receipt ofjudgments or decisions pending at various forums. Accordingly
interest and penalty where applicable will be additionally payable.

(2) The State of Rajasthan issued a notification in June 2008 notifying the Rajasthan Environment and Health Cess (EHS) Rules, 2008, imposing environment
and health cess on major minerals including lead and zinc. HZL and other mine operators resisted this notification and the imposition thereunder before
the High Court of Rajasthan on the ground that the imposition of such cess and all matters relating to the environment fall under the jurisdiction of
the Central government as opposed to the State government. In October 2011, the High Court of Rajasthan disposed the writ petitions and held the
Rajasthan Environment and Cess Rules, 2008 that impose a levy of cess on minerals, as being constitutionally valid. An amount of '150 per metric
ton of ore produced would be attracted under the Statute if it is held to be valid. HZL challenged this order by a special leave petition in December
2011 before the Supreme Court of India. The Supreme Court of India issued a notice for stay. Further direction was issued by the Supreme Court on
March 23, 2012 not to take any coercive action against HZL for recovery of cess. The aforementioned notification was rescinded via notification dated
January 6, 2017, and hence no further obligation exists after that date. The matter is pending for final hearing. As a subsequent development, the
Hon’ble Supreme Court’s judgement in the matter of Mineral Area Development Authority (MADA) vs. Steel Authority of India Ltd, in July 2024, held
that royalty is not a tax, and that the state government has the competence to tax mineral rights including mineral bearing land. Accordingly, as per
the management assessment, the company had recognized a provision of ' 56 Crore relating to liability towards EHS during the year ended March 31,
2025.During the current year, Management has reassessed and based on its reassessment, supported by an independent legal opinion, the provision
is not required, accordingly the same has been reversed and the matter has been disclosed as contingent liability (refer Note 28).

(3) Various demands raised on the Company towards CENVAT, service tax , excise, customs, GST and sales tax for FY 1985-86 to 2024-25. The Company
has paid an amount of ' 28 Crore (March 31, 2025:' 20 Crore) against these demands under protest and is confident of the liability not devolving on
the Company

(4) Tax demands have been raised mainly on account of depreciation disallowances, withholding taxes and interest thereon. Although, the Company has
paid certain amounts in relation to these demands, which are pending at various levels of appeals, management considers these disallowances as not
tenable against the Company, and therefore no provision for tax has been created. Also, refer Note 32(c)(ii).

b. The Department of Mines and Geology (DMG) of the State of Rajasthan had initiated a royalty assessment process from
January 2008 to 2019 and had in this regard, issued a show cause notice vide an office order dated January 31, 2020
amounting to ' 1,925 Crore. Further an additional demand was issued vide an office order dated December 14, 2020
for ' 311 Crore. The Company has challenged the computation mechanism of royalty on the ground that the state has
not complied with the previous orders of Rajasthan High court where a similar computation mechanism was challenged
and court had directed DMG to reassess basis the judicial precedents and mining concession rules. Pending compliance
of previous orders, the High Court had granted a stay on the notice and directed DMG not to take any coercive action.
State Government had also been directed to not take any coercive action in order to recover such miscomputed dues.
Despite of the High court stay order, the State Government raised a demand of ' 1,925 Crore vide order dated March
16, 2022 for the same period. The Company challenged this notice before the Revisionary Authority (“RA”) and also
separately moved an application in RA against the earlier demand raised by DMG for recovery of ' 311 Crore. RA had
granted a stay on the recovery of ' 1,925 Crore vide its order dated June 15, 2022, and on the recovery of ' 311 Crore,
vide its order dated September 07, 2022 respectively.

On July 25, 2024 RA decided the case against the Company for demand raised of ' 311 Crore and order was challenged
by the Company before the Hon’ble High Court of Rajasthan. The High Court, vide an order dated July 26, 2024,
issued a stay on the RA’s order and also directed for HZL to deposit ' 100 Crore under protest. The Company ensured
compliance with the High Court’s directions and deposited the directed amount under protest on July 30, 2024. The
matter before the High Court is pending for final hearing. Based on the opinion of external counsel, the Company
believes that it has strong grounds of a successful appeal against the demand of ' 311 Crore. On October 30, 2024 the
Company received an order from RA against the demand of ' 1925 Crore directing the State Government to await the
guidance, clarification or direction from Central Government in this matter of determination of royalties, upon which the

State Government, if necessary, may recalculate the fiduciary obligations of the Revisionist towards payment of royalty,
DMF, NMET and interests thereon and issue a fresh demand order. The referred revision application was disposed off
accordingly. In October 2025, the clarification was received by the State Government. As a proactive measure, HZL has
challenged certain aspects of the clarification, before the High Court of Rajasthan. There is no further development in
this regard. Therefore, as on date, (i) there is no fresh demand pertaining to ' 1925 Crore and (ii) there is a separate
litigation before the Hon'ble High Court, in challenge to the adverse order as was received from RA with respect to the
demand of ' 311 Crore.

During the year ended March 31, 2025, the Company received provisional assessment orders/ show cause notices
amounting to ' 324 Crore pertaining for the period FY 2013-14 to FY 2024-25 on similar grounds as mentioned above
and the Company has challenged the same in High Court.

c. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)
' 7,692 Crore (March 31, 2025:' 4,011 Crore).

d. Other Commitments

(i) During the year ended March 31, 2023, the Company had entered into Power delivery agreement (‘PDA 1') with
Serentica Renewables India 4 Private Limited (‘Serentica 4') for sourcing of 200 MW (contracted capacity) renewable
power on Round the clock (‘RTC') basis under group captive arrangement for 25 years. Under the terms of the PDA

1, Company is expected to infuse equity of ' 350 Crore for a minimum of twenty six percent in Serentica 4. During
the current year, the Company has made an investment of ' Nil Crore (March 31, 2025: Nil) and pending committed
investment of ' 70 Crore to be made basis fulfilment of conditions of the PDA 1 (see Note 9). As at March 31, 2026,
the Company has invested ' 280 Crore (March 31, 2025 : ' 280 Crore).

During the year ended March 31, 2023, the Company had entered into Power delivery agreement (‘PDA 2') with
Serentica Renewables India 5 Private Limited (‘Serentica 5') for sourcing of 250 MW (contracted capacity) renewable
power on Round the clock (‘RTC') basis under group captive arrangement for 25 years. Under the terms of the PDA

2, Company is expected to infuse equity of ' 438 Crore for a minimum of twenty six percent in Serentica 5. During
the current year, the Company has made an investment of Nil (March 31, 2025: ' 230 Crore) and pending committed
investment of ' 77 Crore is to be made basis fulfilment of conditions of the PDA 2 (see Note 9). As at March 31,2026,
the Company has invested ' 361 Crore (March 31, 2025 : ' 361 Crore).

During the year ended March 31, 2025, the company has entered into Power delivery agreement (‘PDA 3') with
Serentica Renewables India 14 Private Limited (‘Serentica 14'). With this, the company will source upto 530 MW
(contracted capacity including earlier PDAs and higher guaranteed availability) renewable power on Round The
Clock (RTC) basis under group captive arrangement for 25 years. Under the terms of the PDA 3, the Company is
expected to infuse equity of ' 327 Crore for a minimum of twenty six percent in Serentica 14. During the current
year, the Company has made an investment of ' 278 Crore (March 31,2025: Nil) and pending committed investment
of ' 49 Crore is to be made basis fulfilment of conditions of the PDA 3 (see Note 9). As at March 31, 2026, the
Company has invested ' 278 Crore (March 31, 2025 : Nil).

(ii) The company has given Letter of Comfort and also assigned its bank limits to its wholly owned subsidiary Hindustan
Zinc Alloys Private Limited (“HZAPL”) primarily in respect of certain working capital needs and short-term borrowings
amounting to ' 66 Crore as at end of March, 2026. (March 31, 2025: ' 66 Crore)

(iii) During the year ended March 31, 2026, the Company under its Corporate Social Responsibilities (‘CSR') initiative
had signed a Memorandum of Understanding(‘MOU') with Rajasthan Heritage Authority, Jaipur (‘RHA') for the
development of work at Puchari Ka Lota at Goverdhan Parikrama Marg. As per the terms of MOU, the Company has
committed to contribute ' 85 Crore as at March 31, 2026.

(iv) Export obligations

The Company has Nil export obligations (March 31, 2025: Nil) on account of concessional rates of import duties paid
on capital goods under the Export Promotion Capital Goods Scheme enacted by the Government of India (which
is required to be fulfilled over the period of six years from the date of purchase). The Company has given bonds of
' 593 Crore (March 31, 2025: ' 254 Crore) to custom authorities against export obligations which will be released
subject to verification of EODC (Export obligation discharge certificate) by the Customs department.

31. RETIREMENT AND OTHER EMPLOYEE BENEFIT SCHEMES

a. Defined contribution schemes
Family Pension Scheme

The contributions are based on a fixed percentage of the employee's salary, subject to a ceiling, as prescribed in the
scheme. A sum of ' 3 Crore (March 31,2025: ' 4 Crore) has been charged to the Statement of Profit and Loss during the
year. There are no further obligations on the Company.

Superannuation fund

A sum of ' 2 Crore (March 31,2025: ' 3 Crore) has been charged to the Statement of Profit and Loss in respect to
contributions made to the superannuation fund. The Company has no further obligations to the plan beyond the
monthly contributions.

b. Defined benefit plans

For defined benefit schemes, the cost of providing benefits under the plans is determined by actuarial valuation
each year for the plan using the projected unit credit method by independent qualified actuaries as at the year end.
Remeasurements in the year are recognized in full in other comprehensive income for the year.

Provident fund

The Company offers its employees, benefits under defined benefit plans in the form of provident fund scheme which
covers all employees. Contributions are paid during the year into ‘Hindustan Zinc Limited Employee's Contributory
Provident Fund' (‘Trust'). Both the employees and the company pay predetermined contributions into the Trust. A sum
of ' 49 Crore (March 31, 2025: ' 44 Crore) has been charged to the Statement of Profit and Loss in this respect
during the year.

The Company's Trust is exempted under section 17 of Employees Provident Fund Act, 1952. The conditions for grant
of exemption stipulate that the employer shall make good the deficiency, if any, between the return guaranteed by the
statute and actual earning of the Trust. The Company has made provision of ' 24 Crore in this regard in the current year
(forming part of ' 49 Crore mentioned above). The Company has made good the deficiency in current year, of ' 5 Crore
pertaining to year ended March 31, 2025. Having regard to the assets of the Trust and the return on the investments,
the Company does not expect any deficiency in the foreseeable future, except for investments in debt securities of
IL&FS Limited and IL&FS Financial Services Ltd. for which necessary provisions exists.

Risk analysis

The Company is exposed to a number of risks in the defined benefit plans. Most significant risks pertaining to defined
benefits plans and management estimation of the impact of these risks are as follows:

Investment risk

The Company's defined benefit plans are funded with Life Insurance Corporation of India (LIC) and HDFC Life Insurance
Company Limited (HDFC Life). The Company does not have any liberty to manage the fund provided to LIC and HDFC
Life. The present value of the defined benefit plan liability is calculated using a discount rate determined by reference
to Government of India bonds for the Company's 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 plan liability, however this will be partially offset by
increase in the return on plan debt investment.

Longevity risk/ Life expectancy

The present value of the defined benefit plan liability 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.

Salary growth risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.
An increase in the salary of the plan participants will increase the plan liability.

(i) Impact on account of changes in capital gain tax rates as per finance act, 2025.

(ii) The tax department had issued demands on account of remeasurement of certain tax incentives, under section
80IA and 80 IC of the Income-tax Act, 1961. During the year ended 31 March 2020, based on the favorable orders
from Income Tax Appellate Tribunal relating to AY 09-10 to AY 12-13, the Commissioner of Income Tax (Appeals)
has allowed these claims for AY 2014-15 to AY 2016-17, which were earlier disallowed and has granted refund of
amounts deposited under protest. For AY 2013-14 to AY 2016-17, the department has filed appeals before the
Tribunal, which are pending for disposal. The Tribunal allowed these claims in AYs 2017-18, 2018-19 & 2020-21 in
line with past years' orders. The department had filed appeals before the Hon'ble Rajasthan High Court in FY 17¬
18 (for AY 2009-10 to AY 2012-13) and in FY 2023-24 (for AY 2017-18 and AY 2018-19) against the Tribunal orders,
which are yet to be admitted. The department is yet to file an appeal before the High Court against the tribunal
order of AY 2020-21. During the current year, the company has received Final Assessment Order for AY 2022-23
with identical additions, against which appeal has been filed before the Tribunal. 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 favour of the Company. The amount involved in this dispute as of March 31, 2026 is ' 12,387 Crore
(31^st Mar 2025: ' 12,411 Crore) plus applicable interest upto the date of settlement of the dispute.

Fair value of the current instrument in bonds, perpetual bonds and zero coupon bonds are based on the price quotations at
the reporting date. Fair value of current investments that are in the nature of ‘close ended' mutual funds are based on market
observable inputs i.e. NAV provided by mutual fund houses. [a level 2 technique].

Fair value of current investments that are in the nature of ‘open ended' mutual funds are derived from quoted market prices
in active markets [a level 1 technique].

Fair value of non current investments that are in the nature of ‘Investment in OCRPS and Equity shares' are derived from
Back Solve Option Pricing Method (BSOP) in current year and Net asset value method [a level 3 technique] in previous year.

The Fair value of other non current financial assets and liabilities are estimated by discounting the expected future cash
flows using a discount rate equivalent to the risk free rate of return adjusted for the appropriate credit spread.

The Company enters into derivative financial instruments with various counterparties, principally financial institutions with
investment grade credit ratings. Forward foreign currency contracts are valued using valuation technique with market
observable inputs. The most frequently applied valuation techniques for such derivatives include forward pricing using
present value calculations. The models incorporate various inputs including the credit quality of counterparties, 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 currency (a level 2 technique). Commodity
contracts are valued using the forward LME/ LBMA rates of commodities actively traded on the listed metal exchange i.e.
London Metal Exchange & London Bullion Metal Association, United Kingdom (U.K.) [a level 2 technique].The changes in
counterparty risk had no material effect on the hedge effectiveness assessment for the derivatives designated in hedge
relationship and the value of the other financial instrument recognised at fair value.

Fair value hierarchy

The table shown below analyses financial instruments carried at fair value, by measurement hierarchy. The different levels
have been defined below:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Valuation technique used for valuation of financial instruments in level 3:

Valuation of preference and equity shares in level 3 are done using Back Solve Option Pricing Method [a level 3 technique]
and Net asset value method [a level 3 technique] in previous year, making assumptions about unobservable market data.

Risk management framework
Risk management

The Company's businesses are subject to several risks and uncertainties including financial risks. The Company's documented
risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed
to 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 and concentration of credit risk and capital management. Risks
are identified through a formal risk management programme with active involvement of senior management personnel and
business managers. 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 & Risk Management Committee. The Audit & Risk Management Committee is aided by the other committees
of the board, 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 & Risk Management 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

The Company's treasury function provides services to the business, co-ordinates access to domestic financial markets,
monitors and manages the financial risks relating to the operations of the Company through internal risk reports which
analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, fair value
interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk.

Treasury management focuses on capital protection, liquidity maintenance and yield maximization. The treasury
policies are approved by the Board and adherence to these policies is strictly monitored at the Executive Committee
meetings. Day-to-day treasury operations of the Company are managed by the finance team within the framework
of the overall Company's treasury policies. A monthly reporting system exists to inform senior management about
investments, currency and, commodity derivatives. 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 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 forwards and these
are subject to the Company's guidelines and policies.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises interest rate risk, currency risk and commodity risk. Financial instruments affected by
market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2026 and March 31, 2025. The
sensitivity analyses have been prepared on the basis that the amount of net investment, the ratio of fixed interest rates of the
debt and derivatives and the proportion of financial instruments in foreign currencies are all constant. The analysis exclude
the impact of movements in market variables on the carrying values of gratuity and other post-retirement obligations,
provisions, and the non-financial assets and liabilities of foreign operations.

Commodity price risk

The Company is exposed to the movement of base metal/ precious metal commodity prices on the London Metal
Exchange and London Bullion Market Association. Any decline in the prices of the base metals/precious metals that the
Company produces/generates and sells will have an immediate and direct impact on the profitability of the businesses.
As a general policy, the Company aims to achieve the monthly average of the commodity prices for sales realization.
In exceptional circumstances, the Company may enter into strategic hedging. 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 and with clearly laid down guidelines for their implementation by the Company.

Whilst the Company aims to achieve average LME/LBMA prices for a month or a year, average realized prices may not
necessarily reflect the LME/LBMA price movements because of a variety of reasons such as uneven sales during the year
and timing of shipments.

Financial instruments with commodity price risk are entered into in relation to following activities:

• economic hedging of prices realized on commodity contracts.

• cash flow hedging on account of forecasted highly probable transactions.

The sales prices of zinc, lead and silver are linked to the LME and LBMA prices. The Company also enters into hedging
arrangements for its Zinc, Lead and silver sales to realize month of sale LME and LBMA prices.

Total exposure on provisionally priced Zinc, Lead & Silver contracts as at March 31, 2026 was ' 44 Crore (March 31, 2025:
' 189 Crore), Nil (March 31, 2025: ' 74 Crore) and Nil (March 31, 2025: Nil) respectively. Based on average price fluctuations,
the impact on net profit before tax, for a 10% movement in LME prices of zinc, 5% movement in LME price of lead and 5%
movement in LBMA price of silver that were provisionally priced as at March 31, 2026 is ' 4 Crore, Nil and Nil respectively
and as at March 31, 2025 is ' 19 Crore, ' 4 Crore and Nil respectively.

Financial risk

The Company's Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk. The
Company does not engage in speculative treasury activity but seeks to manage risk and optimize interest and commodity
pricing through proven financial instruments.

a. Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term investment programme
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 as ‘AAA' / Stable for long term and A1 for short term by CRISIL Limited during the current
and previous financial years.

The Company remains committed to maintaining a healthy liquidity, gearing ratio and strengthening the 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.

b. Foreign exchange risk

Fluctuations in foreign currency exchange rates may have an impact on the Statement of Profit and Loss, where any
transaction references more than one currency other than the functional currency of the Company.

The Company uses forward exchange contracts, 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 denominated in foreign currency. The Company is also
exposed to foreign exchange risk on its exports. Most of these transactions are denominated in US dollars. The policy
of the Company is to determine on a regular basis what portion of the foreign exchange risk on financing transactions
are to be hedged through forward exchange contracts and other instruments. 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. Longer term exposures, are normally unhedged. 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 below
table summarises the foreign currency risk from financial instrument and is partly mitigated by some of the derivative
contracts entered into by the Company as disclosed under the section on “Derivative financial instruments.”

The Company's exposure to foreign currency arises where a Company holds monetary assets and liabilities denominated
in a currency different to the functional currency of the Company, with US dollar and Euro being the major non-functional
currency. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency
exchange rate, liquidity and other market changes.

The results of Company operations may be affected largely by fluctuations in the exchange rates between the Indian
Rupee, against the US dollar and Euro. The foreign exchange rate sensitivity is calculated by the aggregation of the
net foreign exchange rate exposure with a simultaneous parallel foreign exchange rate shift in the currencies by 10%
against the functional currency of the respective entities.

Set out below is the impact of a 10% strengthening/weakening in the INR on pre-tax profit/(loss) arising as a result of the
revaluation of the Company's foreign currency financial assets/liabilities:

c. Interest rate risk

The Company is exposed to interest rate risk on short-term and long-term borrowings. 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 denominated in Indian Rupees with
mix of fixed and floating rates of interest. The floating rate is linked to Bank's base rate. These exposures are reviewed
by appropriate levels of management on frequent 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.

Interest Interest rate risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because
of changes in market interest rate. The Company's exposure to the risk of changes in market interest rates relates
primarily to the Company's long term obligations.

Considering the debt position as at March 31,2026 and the investment in bonds and debt mutual funds, any increase in
interest rates would result in a net decrease in profits and any decrease in interest rates would result in a net increase in
profits. The sensitivity analysis below has been determined based on the exposure to interest rates for both derivative
and non-derivative instruments at the balance sheet date.

The below analysis gives the impact of a 0.5% to 2.0% change in interest rates on floating rate financial assets/ liabilities
(net) on profit/(loss) before tax and represents management's assessment of the possible change in interest rates.

The impact of change (increase/(decrease)) in interest rate of 0.5%, 1.0% and 2.0% on profits for the period ended March
31, 2026 is ' 15 Crore, ' 29 Crore and ' 58 Crore and for year ended March 31, 2025 is ' 33 Crore, ' 66 Crore and
' 132 Crore respectively.

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 obtaining sufficient collateral, where appropriate, as a means of
mitigating the risk of financial loss from defaults. The Company is exposed to credit risk for receivables, cash and cash
equivalents, short-term investments 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 good financial repute.

Moreover, given the nature of the Company's business, trade receivables are spread over a number of customers
with no significant concentration of credit risk. No single customer accounted for 10% or more of revenue on a %
basis in current year (Previous year : None). 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.

For short-term investments, counterparty limits are in place to limit the amount of credit exposure to any one counterparty.
For derivative and financial instruments, the Company attempts to limit the credit risk by only dealing with reputable
banks and financial institutions having high credit-ratings assigned by international credit-rating agencies. Defined
limits are in place for exposure to individual counterparties in case of mutual funds schemes and bonds.

The carrying value of the financial assets represents the maximum credit exposure. The Company's maximum exposure
to credit risk as at March 31, 2026 and March 31, 2025 are ' 15,294 Crore and ' 10,517 Crore respectively.

None of the Company's cash equivalents, including time deposits with banks, are past due or impaired. Regarding trade
and other receivables, and other non-current assets, there were no indications as at March 31, 2026 and March 31,
2025, that defaults in payment obligations will occur.

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 credit quality of the Company's customers is monitored on an on-going basis and assessed for impairment where
indicators of such impairment exist. The solvency of the debtor and their ability to repay the receivable is considered in
assessing receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover
the amounts in question and enforce compliance with credit terms.

Derivative financial instruments

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.

All derivative financial instruments are recognized as assets or liabilities on the balance sheet and measured at fair
value based on quotations obtained from financial institutions or brokers. The accounting for changes in the fair value
of a derivative instrument depends on the intended use of the derivative and the resulting designation.

The fair values of all derivatives are separately recorded in the balance sheet within current assets and liabilities/
reserves. Derivatives that are designated as hedges are classified as current depending on the maturity of the derivative.

The use of derivatives can give rise to credit and market risk. The Company tries to manage credit risk by 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.

Embedded derivatives

Derivatives embedded in other financial instruments or other contracts are treated as separate derivative contracts and
marked-to-market when their risks and characteristics are not clearly and closely related to those of their host contracts
and the host contracts are not fair valued.

Qualifying Hedges
Cash flow hedges

The Company also enters into commodity price contracts for hedging highly probable future forecast transaction and
account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognized
in equity through OCI until the hedged transaction occurs, at which time, the respective gains or losses are reclassified
to the Statement of Profit and Loss. Cash flow hedge accounting is discontinued when the hedging instrument expires
or is sold, terminated, or exercised, or when it no longer qualifies for hedge accounting. Any gain or loss recognised
in other comprehensive income and accumulated in equity at that time remains in equity and is recognised when the
forecast transaction is ultimately recognised in the statement of profit and loss. When a forecast transaction is no longer
expected to occur, the gain or loss accumulated in equity is recognised immediately in the statement of profit and loss.

There is an economic relationship between the hedged items and the hedging instruments. The Company has
established a hedge ratio of 1:1 for the hedging relationships. To test the hedge effectiveness, the Company uses the
hypothetical derivative method and Dollar offset method.

The hedge ineffectiveness can arise from:

• Differences in the timing of the cash flows of the hedged items and the hedging instruments.

• Different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and
hedging instruments.

• The counterparties' credit risk differently impacting the fair value movements of the hedging instruments
and hedged items.

• Changes to the forecasted amount of cash flows of hedged items and hedging instruments.

These hedges had been effective for the year ended March 31, 2026 and March 31, 2025.

Fair value hedges

The fair value hedges relate to commodity price risks and foreign currency exposure. 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.There were no fair value hedges for the period ended March 31, 2026.

Non-qualifying/economic hedges

Non-qualifying hedges related to commodity price risks and foreign currency exposure. The Company enters into
forward foreign currency contracts and commodity 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. Fair
value changes on such forward contracts are recognized in the Statement of Profit and Loss.

36. CAPITAL MANAGEMENT

The Company's objectives when managing capital is to safeguard, 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 internal accruals, equity and short term borrowings. The Company monitors
capital on the basis of gearing ratio, which is net debt divided by total capital (equity net debt). Net debt are non-current
and current debt as reduced by cash and cash equivalents, other bank balances, current investments and certain non
current investments. Equity comprises all components including other components of equity.

h. Terms and conditions of related party transactions:

Transactions during the year are reported excluding GST and other applicable taxes, if any.

Sales made to/purchases made from and other transactions with related parties are on the same terms as applicable
to third parties in an arm's length transaction and in the ordinary course of business. The Company mutually negotiates
and agrees prices, discount and payment terms with the related parties by benchmarking the same to transactions with
non-related parties.

Trade receivables and Trade payables outstanding balances are unsecured, require settlement in cash and no guarantee
or other security has been received/ given against these receivables/ payables (except for balances in Note 7).

40. SUBSEQUENT EVENTS

There are no material events which requires adjustment.

41. AUDIT TRIAL NOTE

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 both at the application as well as at the database level. Further, there are no instance of audit trail feature
being tampered with. Additionally, the audit trail of prior year(s) has been preserved as per the statutory requirements
for record retention, to the extent it was enabled and recorded in the respective years.

42. OTHER STATUTORY INFORMATION

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the
company for holding any Benami property.

(ii) The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

(iii) The Company does not have any transactions with companies struck off.

(iv) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.

(v) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(vi) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with
the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(viii) The Company has no any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961).

43. OTHER INFORMATION

During the year, a short seller had published reports alleging certain matters against some of the Vedanta Group entities
including Hindustan Zinc Limited. Based on its assessment, management of the Company continues to believe that these
allegations are baseless and that the transactions stated in the allegations have appropriate commercial substance and
that the said transactions have been duly approved through necessary processes and the Company remains compliant
with contractual obligations and applicable laws and regulations, and basis management's assessment, no adjustments
are required in standalone financial statements of the Company.

During the period, information sought by regulators/authorities have been duly provided by the company. No further
communication has been received by the company as of date. Accordingly, management believes that no adjustments
are required to these standalone financial statements of the company for the year ended March 31, 2026 or
any prior periods.

For and on behalf of the Board of Directors
CIN -L27204RJ1966PLC001208

As per our report on even date

For S. R. Batliboi & Co. LLP Arun Misra Pallavi Joshi Bakhru

Chartered Accountants CEO & Whole-time Director Director

ICAI Firm Registration No.: 301003E/E300005 DIN: 01835605 DIN: 05126618

Place: Delhi

per Tridevlal Khandelwal Sandeep Modi Aashhima V Khanna

Partner Chief Financial Officer Company Secretary

ICAI Membership No.: 501160 ICSI Membership No.: A34517

Date: April 24, 2026 Date: April 24, 2026 Date: April 24, 2026

Place: Ahmedabad Place: Udaipur Place: Udaipur