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 organized by its main products: oil and gas, aluminium, copper, iron ore and power. Each of the reportable segments derives its revenues from these main products and hence these have been identified as reportable segments by the Company's Chief Operating Decision Maker ("CODM”).

Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amount allocated on a reasonable basis. Unallocated expenditure consist of common expenditure incurred for all the segments and expenses incurred at corporate level. The assets and liabilities that cannot be allocated between the segments are shown as unallocated assets and unallocated liabilities respectively.

The accounting policies of the reportable segments are the same as the Company's accounting policies described in Note 3. Earnings before Interest, Tax and Depreciation & Amortisation (EBITDA) are evaluated regularly by the CODM, in deciding how to allocate resources and in assessing performance. The operating segments reported are the segments of the Company for which separate financial information is available. The Company's financing (including finance costs and finance income) and income taxes are reviewed on an overall basis and are not allocated to operating segments.

Pricing between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

The following table presents revenue and EBITDA and certain assets and liabilities information regarding the Company's business segments as at and for the year ended 31 March 2026 and 31 March 2025 respectively.

a) EBITDA is a non-GAAP measure.

b) Other 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 ' 10 Crore not allocable to any segment.

e) Total net impairment reversal includes impairment reversal on investments of ' 200 Crore, which is not allocable to any segment.

The continuing business segments are:

(a) Copper, which consists of manufacturing of copper cathode, continuous cast copper rod, anode slime from purchased concentrate and blister and manufacturing of sulphuric acid, phosphoric acid; and

The discontinued business segments are:

(b) Power, includes thermal power facilities predominantly engaged in generation and sale of commercial power but excluding captive power;

(c) Oil and Gas, which consists of exploration, development and production of oil and gas;

(d) Aluminium, which consists of manufacturing of alumina and various aluminium products; and

(e) Iron ore, which consists of mining of ore and manufacturing of pig iron and metallurgical coke.

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 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 pending 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 BALCO for ' 15,492 Crore.

This offer was separate from the contested exercise of the call options, and Company proposed to withdraw the ongoing litigations in relation to the contested exercise of the options should the offer be accepted. To date, the offer has not been accepted by the Government of India and therefore, there is no certainty that the acquisition will proceed.

In view of the lack of resolution on the options, the non-response to the exercise and valuation request from the Government of India, the resultant uncertainty surrounding the potential transaction and the valuation of the consideration payable, the Company considers the strike price of the options to be at the fair value, which is effectively nil, and hence the call options have not been recognised in the financial statements.

c. Reduction pursuant to merger of Cairn India Limited with Vedanta Limited accounted for in the year ended 31 March 2017.

d. The Company has not recognised any deferred tax asset on impairment of investments, including amount reduced pursuant to merger (refer note c above) as the realisation of the same is not reasonably certain.

e. As at the year ended 31 March 2025, the Company had made investment of '5,254 Crore ($ 600 million), extended loan of '1,103 Crore ($ 129 million) and provided financial guarantee of ' 3,257 Crore (US$ 380 million) against the external borrowing of ' 2,991 Crore (US$ 350 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 March 31, 2025, the recoverable amount of VZI had 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 during the estimated predetermined life of mine ("LOM”) / natural estimated resources outside 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 12.99%. The resultant recoverable amount is higher than the carrying value/ exposure value as mentioned above and hence no impairment/ 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 ' 838 Crore (US$ 98 million).

(a) The credit period given to customers is up to 180 days (31 March 2025: 180 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 ' 634 Crore, net of Provision for expected credit loss (""ECL'") of ' 200 Crore recognised on account of time value of money as at 31 March 2026 (disclosed under discontinued operations, refer note 45) (31 March 2025: ' 634 Crore, net of ECL of ' 200 Crore) withheld by GRIDCO Limited (""GRIDCO"") primarily on account of litigation and alleged short-supply of power by the Company under the terms of long term power supply agreement.

Out of the above, ' 341 Crore, net of ECL of ' 107 Crore as at 31 March 2026 (31 March 2025: ' 341 Crore, net of ECL of ' 107 Crore) 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 ' 218 Crore, net of ECL of ' 68 Crore (31 March 2025: ' 223 Crore, net of ECL of ' 63 Crore) 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 2024 were ' 2,537 Crore (net of provision for ECL).

During the year ended 31 March 2024, the Arbitration Tribunal has issued Final Partial Award which allowed for recovery of exploration costs. As at 31 March 2026, an amount of ' 1,290 Crore (US$ 137 million) (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 1,143 Crore (US$ 134 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.

(a) Bank deposits includes fixed deposits with maturity more than 12 months of ' 369 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 145 Crore) under lien with bank, ' 2 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 5 Crore) under lien with others, ' 208 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 209 Crore) held as reserve created against principal payment on loans from banks, ' 2 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 2 Crore) held as fixed deposit for closure cost, restricted fund of ' 232 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 264 Crore) held as interest reserve created against interest payment on loans from banks and ' 269 Crore (31 March 2025: ' 63 Crore) held as margin money created against bank guarantee.

(b) Bank deposits and site restoration asset earns interest at fixed rate based on respective deposit rate.

(c) Bank deposits with original maturity of more than 12 months but less than 12 months remaining to mature are disclosed as "Current Financial assets - others” instead of "Other bank balances” earlier.

(d) Government of India (Gol) vide Office Memorandum ("OM”) No. 0-19025/10/2005-0NG-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, Gol 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 recognizing 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 Gol is not applicable to its Joint operation partner.

(a) Includes ' 34 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 34 Crore), being Company's share of gross amount of ' 97 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 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 as at 31 March 2026 and claim receivables, advance recoverable (oil and gas business), prepaid expenses and export incentive receivables as at 31 March 2025.

(a) Includes ' 1,845 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 34 Crore) on lien with banks and margin money of ' 123 Crore (31 March 2025: ' 117 Crore).

(b) Restricted funds of ' 238 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 29 Crore) on lien with others and ' 651 Crore (disclosed as discontinued operations, refer note 45) (31 March 2025: ' 617 Crore) held as margin money created against bank guarantee.

(c) Earmarked unpaid dividend accounts are restricted in use as it relates to unclaimed or unpaid dividend, as per the provisions of the Act.

(d) Earmarked escrow account is restricted in use as it relates to unclaimed redeemable preference shares.

(a) Includes 2,98,632 (31 March 2025: 2,98,632) equity shares kept in abeyance. These shares are not part of listed equity capital and pending allotment as they are sub-judice.

(b) Includes 55,86,325 (31 March 2025: 50,83,517) equity shares held by Vedanta Limited ESOS Trust ("VESOS Trust").

(c) During the year ended 31 March 2025, the Company had allotted 19,31,81,818 equity shares on 20 July 2024 to eligible Qualified Institutional Buyers ("QIB") at a price of ' 440 per equity share (including a premium of ' 439 per equity share) aggregating to 8,500 Crore pursuant to Qualified Institutions Placement ("QIP") in accordance with provisions of SEBI Issue of Capital and Disclosure Requirements ("ICDR") Regulations. Upto 31 March 2026, ' 6,375 crores were used for specific purposes of loan repayments, ' 2,061 crores were used for general corporate purposes and '64 crores were used towards corporate tax payments. As at 31 March 2026, all the QIP proceeds have been utilized. Necessary compliance certificates for "Use of Proceeds" have been obtained.

F) Other disclosures

(i) The Company has one class of equity shares having a par value of ' 1 per share. Each shareholder is eligible for one vote per share held and dividend as and when declared by the Company. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend which is paid as and when declared by the Board of Directors. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

(ii) In terms of Scheme of Arrangement as approved by the Hon'ble High Court of Judicature at Mumbai, vide its order dated 19 April 2002, the erstwhile Sterlite Industries (India) Limited (merged with the Company during FY 2013-14) during FY 2002-2003 reduced its paid up share capital by ' 10 Crore. There are 1,98,343 equity shares (31 March 2025: 1,99,876 equity shares) of ' 1 each pending clearance from NSDL. The Company has filed an application in Hon'ble High Court of Mumbai to cancel these shares, the final decision on which is pending. Hon'ble High Court of Judicature at Mumbai, vide its interim order dated 06 September 2002 restrained any transaction with respect to subject shares.

15 Other equity

A. Nature and purpose of reserves:

i) 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.

ii) 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.

iii) 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.

iv) Capital reserve: The balance in capital reserve has mainly arisen consequent to merger of Cairn India Limited with the Company.

v) Foreign currency translation reserve: The Statement of Profit and Loss of oil and gas business is translated into Indian Rupees (?) 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.

vi) 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.

vii) 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 nonfinancial liability.

viii) Instruments through OCI: The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated in a separate reserved within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised. This reserve also includes changes in the fair value of debt instruments held with business objective of collect and sell. The Company transfers amounts from this reserve to the P&L when the debt instrument is sold. Any impairment loss on such instruments is reclassified immediately to the P&L.

B. Movement of Reserves

For movement of reserves, refer Statement of Changes in Equity.

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 has established a supplier finance arrangement to manage its working capital. Refer note 19.

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.

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 4.02% to 7.20% (31 March 2025: 4.65% to 7.59%) per annum and in rupee from domestic banks at interest rate ranging from 5.50% to 8.00% (31 March 2025: 5.27% to 8.98%) 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 partly 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.

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 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 2026 and 31 March 2025 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.

Oil and gas

The prices of various crude oils are based upon the price of the key physical benchmark crude oil such as Dated Brent, West Texas Intermediate, and Dubai/ Oman etc. The crude oil prices move based upon market factors like supply and demand. The regional producers price their crude basis these benchmark crude with a premium or discount over the benchmark based upon quality differential and competitiveness of various grades.

Natural gas markets are evolving differently in important geographical markets. There is no single global market for natural gas. This could be owing to difficulties in large-scale transportation over long distances as compared to crude oil. Globally, there are three main regional hubs for pricing of natural gas, which are USA (Henry Hub Prices), UK (NBP Price) and Japan (imported gas price, mostly linked to crude oil).

Provisionally priced financial instruments

On 31 March 2026, the value of net financial liabilities linked to commodities (excluding derivatives) accounted for on provisional prices was ' 2,442 Crore (31 March 2025: liabilities of ' 724 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 2026.

At the same time, the continuation of the rating watch across all agencies reflects the ongoing process related to the demerger of Vedanta's businesses into standalone listed entities. Rating agencies are closely monitoring developments pertaining to the organisational restructuring, including the final allocation of liabilities and the post demerger financial profile of each resulting entity.

Anticipated future cash flows, together with undrawn fund based committed facilities of ' 1,727 Crore, and cash, bank and short term investments of ' 3,217 Crore as at 31 March 2026, 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.

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 ' 180 Crore loss (31 March 2025: ' 204 Crore loss), which is pass through in nature and as such will not have any impact on the profitability.

Financial risk

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

(a) Liquidity

The Company's liquidity position remains strong, supported by healthy cash generation from operations and prudent financial management. The business requires funding for both short-term operational needs and long-term strategic investments, primarily driven by growth projects across its key business segments. These requirements are met through internal accruals, supplemented by available cash balances, cash equivalents and short-term investments, which collectively provide a stable and reliable liquidity buffer. The Company has been rated by CRISIL Limited (CRISIL), ICRA Limited (ICRA) 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 the year ended 31 March 2026, CRISIL reaffirmed the Company's long term rating at 'CRISIL AA' and its short term rating at 'CRISIL A1 ', with the ratings continuing on Watch with Developing Implications. ICRA similarly reaffirmed the long term rating at 'ICRA AA' and short term rating at 'ICRA A1 ', also maintaining the Watch with Developing Implications classification. India Ratings reaffirmed the Company's long term rating at 'IND AA ' with the watch status unchanged.

The ratings reflect VDLs strong momentum in consolidated profitability, supported by its cost efficient operations across key business segments, particularly aluminium and zinc. This performance is complemented by an improved capital structure, with a meaningful reduction in debt and leverage to levels below rating thresholds, resulting in a strengthened overall credit profile. The Company has also achieved a material reduction in refinancing risk and enhanced its financial flexibility, further supporting the stability of its liquidity position.

(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. Shortterm 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”.

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 2026, the Company's net debt of ' 7,431 Crore (31 March 2025: ' 36,690 Crore) comprises debt of ' 10,648 Crore (31 March 2025: ' 42,821 Crore) offset by cash, bank and short term investments of ' 3,217 Crore (31 March 2025: ' 6,131 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 SOFR and INR Floating rate debt to Bank's base rate. The Company has a policy of selectively using interest rate swaps, option contracts and other derivative instruments to manage its exposure to interest rate movements. These exposures are reviewed by appropriate levels of management on a monthly basis. The Company invests cash and liquid investments in short-term deposits and debt mutual funds, some of which generate a tax-free return, to achieve the Company's goal of maintaining liquidity, carrying manageable risk and achieving satisfactory returns.

Floating rate financial assets are largely mutual fund investments which have debt securities as underlying assets. The returns from these financial assets are linked to market interest rate movements; however the counterparty invests in the agreed securities with known maturity tenure and return and hence has manageable risk.

The exposure of the Company's financial assets as at 31 March 2026 to interest rate risk is as follows:

Considering the net debt position as at 31 March 2026 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.

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 2026 and 31 March 2025:

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 ' 5,608 Crore and ' 20,692 Crore as at 31 March 2026 and 31 March 2025 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”.

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.

D Derivative financial instruments

The Company uses derivative instruments as part of its management of exposure to fluctuations in foreign currency exchange rates, interest rates and commodity prices. The Company does not acquire or issue derivative financial instruments for trading or speculative purposes. The Company does not enter into complex derivative transactions to manage the treasury and commodity risks. Both treasury and commodities derivative transactions are normally in the form of forward contracts and these are subject to the Company guidelines and policies.

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

The use of derivatives can give rise to credit and market risk. The Company tries to control credit risk as far as possible by only entering into contracts with reputable banks and financial institutions. The use of derivative instruments is subject to limits, authorities and regular monitoring by appropriate levels of management. The limits, authorities and monitoring systems are periodically reviewed by management and the Board. The market risk on derivatives is mitigated by changes in the valuation of the underlying assets, liabilities or transactions, as derivatives are used only for risk management purposes.

(i) Cash flow hedges

The Company enters into forward exchange and commodity price contracts for hedging highly probable forecast transaction and account for them as cash flow hedges and states them at fair value. Subsequent changes in fair value are recognized in equity through OCI until the hedged transaction occurs, at which time, the respective gain or losses are reclassified to profit or loss. These hedges have been effective for the year ended 31 March 2026.

The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. The Company hedged part of its foreign currency exposure on capital commitments during the year ended 31 March 2026. Fair value changes on such forward contracts are recognized in other comprehensive income.

The majority of cash flow hedges taken out by the Company during the year comprise non-derivative hedging instruments for hedging the foreign exchange rate of highly probable forecast transactions and commodity price contracts for hedging the commodity price risk of highly probable forecast transactions.

The cash flows related to above are expected to occur during the year ended 31 March 2026 and consequently may impact profit or loss for that year depending upon the change in the commodity prices and foreign exchange rates movements. For cash flow hedges regarded as basis adjustments to initial carrying value of the property, plant and equipment, the depreciation on the basis adjustments made is expected to affect profit or loss over the expected useful life of the property, plant and equipment.

(ii) Fair value hedge

The fair value hedges relate to forward covers taken to hedge currency exposure and commodity price risks.

The Company's sales are on a quotational period basis, generally one month to three months after the date of delivery at a customer's facility. The Company enters into forward contracts for the respective quotational period to hedge its commodity price risk based on average LME prices. Gains and losses on these hedge transactions are substantially offset by the amount of gains or losses on the underlying sales. Net gains and losses are recognized in the statement of profit and loss.

The Company uses foreign exchange contracts from time to time to optimize currency risk exposure on its foreign currency transactions. Fair value changes on such forward contracts are recognized in the statement of profit and loss.

(iii) Non- designated economic hedge

The Company enters into derivative contracts which are not designated as hedges for accounting purposes, but provide an economic hedge of a particular transaction risk or a risk component of a transaction. Hedging instruments include copper, aluminium future contracts on the LME and certain other derivative instruments. Fair value changes on such derivative instruments are recognized in the statement of profit and loss.

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 4.25% to 4.75%, and become payable at the end of the producing life of an oil field and are expected to be incurred over a period of five to sixteen 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.

i) Defined contribution plans

The Company contributed a total of ' 7 Crore for the year ended 31 March 2026 and ' 6 Crore for the year ended 31 March 2025 to the following defined contribution plans in respect of its continuing operations.

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 2026 and 12% for the year ended 31 March 2025) 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 authorized by the Government of India to which the Company contributes a fixed amount relating to superannuation and the pension annuity will be met by the fund manager as per rules of National Pension Scheme.

The Company has no further obligations under the scheme beyond its monthly contributions which are charged to the statement of profit and loss in the year they are incurred.

ii) Defined benefit plans

(a) Contribution to provident fund trust (the "trust")

The provident fund of the Iron Ore division is exempted under Section 17 of the 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 2026 and 31 March 2025. 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 ' 11 Crore for the year ended 31 March 2026 (31 March 2025: ' 10 Crore), disclosed as discontinued operations (Refer note 45). The present value of obligation and the fair value of plan assets of the trust are summarized below.

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.

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

On 21 November 2025, the Government of India notified four Labour Codes—Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020— consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules and FAQs to facilitate assessment of financial impact due to changes in regulations. The Company has assessed and accounted for the incremental impact of these changes with the best information available, and guidance from the Institute of Chartered Accountants of India, considering the impact is non-recurring in nature and is driven by regulatory changes, the incremental impact of '80 crore (of which ' 77 crore relates to discontinued operations, refer note 45) has been disclosed as "Statutory impact of new Labour Codes” under Exceptional Items in the financial statements for the year ended 31 March 2026. The Company continues to monitor the finalisation of Central / State Rules and clarifications from the Government on other aspects of the Labour Code and would provide appropriate accounting effect as and when such clarifications are issued/ rules are notified.

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.

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 2026 and year ended 31 March 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 & 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.

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-ScholesMerton 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.

a) Revenue from sale of products and from sale of services for the year ended 31 March 2026 includes revenue from contracts with customers of ' 22,929 Crore (31 March 2025:' 16,715 Crore) and a net gain on mark-to-market of ' 70 Crore (31 March 2025:' 45 Crore) on account of gains 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.

Weighted average share price at the date of exercise of stock options was ' 600 (31 March 2025: ' 452.48)

The weighted average remaining contractual life for the share options outstanding was 1.52 years (31 March 2025: 1.58 years).

The Company recognised total expenses of ' 56 Crore (31 March 2025: ' 60 Crore) related to equity settled share based payment transactions for the year ended 31 March 2026 out of which ' 29 Crore (31 March 2025: ' 33 Crore) was recovered from group companies. The total (reversal)/charge recognised on account of cash settled share based plan during the year ended 31 March 2026 is ' 0.61 Crore (31 March 2025: ' (0.59) Crore) and the carrying value of cash settled share based compensation liability as at 31 March 2026 is ' 1.48 Crore (31 March 2025: ' 0.87 Crore).

Out of the total expense of ' 26 Crore (31 March 2025: ' 27 Crore) pertaining to above options for the year ended 31 March 2026, the Company has capitalised ' 0.57 Crore (31 March 2025: ' 1 Crore) expense for the year ended 31 March 2026.

Pursuant to the demerger, at the time of vesting, eligible employees would receive shares of all the Resulting Companies in such proportion as would reflect the equivalent of one share of pre-demerger Vedanta Limited. Consequently, there is no impact on ESOP expense/ liability due to demerger.

b. During the year ended 31 March 2026, the Company has recognized a provision for impairment in respect of investment and advances given to Bloom Fountain Limited (Western Cluster, Liberia) for ' 853 Crore. The impairment is a result of continued uncertainty in the viability of the underlying project due to geo-political factors including high stripping ratios, lower ore grades, logistical constraints.

c. On 21 November 2025, the Government of India notified four Labour Codes—Code on Wages, 2019; Industrial Relations Code, 2020; Code on Social Security, 2020; and Occupational Safety, Health and Working Conditions Code, 2020— consolidating 29 existing labour laws. The Ministry of Labour & Employment has published draft Central Rules and FAQs to facilitate assessment of financial impact due to changes in regulations. The Company has assessed and accounted for the incremental impact of these changes with the best information available, and guidance from the Institute of Chartered Accountants of India, considering the impact is non-recurring in nature and is driven by regulatory changes, the incremental impact of '80 crore has been disclosed as "Statutory impact of new Labour Codes” under Exceptional Items in the financial statements for the year ended 31 March 2026.

d. During the year ended 31 March 2025, the Oil & Gas segment of the Company has commenced injection of Alkaline Surfactant Polymer ("ASP") flooding in selective well pads of the Mangala field. In order to extend the injection across the field, the Company has identified cluster-based development approach. The execution of cluster-based approach has commenced with the award of surface facilities and on ground mobilization. As a result of the above, the Company is planning for the development of remaining clusters. Accordingly, the recoverable amount of the Company's share

in Rajasthan Oil and Gas cash generating unit ("RJ CGU”) is determined to be ' 6,594 Crore (US$ 787 million) as at 30 September 2024, resulting in an impairment reversal of ' 913 Crore (US$ 109 million) on its assets in the oil and gas producing facilities and ' 200 Crore on its investment in its wholly subsidiary, Cairn India Holdings Limited ("CIHL¹).

The recoverable value 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 (reserves and resources) extractable up to 2040 (including expected 10 year additional term of license extension), the expected dates of cessation of production sharing contract (''''PSC'¹")/ cessation of production from each producing field based on the current estimates of reserves and risked resources.

Management believes that an additional 10-year term of license extension would be available and would also be considered by a market participant based on past precedence on license extensions, industry practice with relation to granting of extensions and understanding of Indian economy's focus on self-reliance for oil production which is indicated by various initiatives through award of new blocks, etc The 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$ 73 per barrel three years thereafter derived from a consensus of various analyst recommendations. Thereafter, these have been escalated at a rate of 2% per annum. The cash flows are discounted using the post-tax nominal discount rate of 11.91% (15% for ASP remaining clusters), 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 ' 17 Crore (US$ 2 million) and ' 685 Crore (US$ 82 million) respectively. The sensitivities around change in crude price and discount rate are not material to the financial statements.

e. Based on operational performance of coking coal division of MALCO Energy Limited ("MEL'), a wholly owned subsidiary of the Company, the management reassessed the recoverability of loans given to and other receivables from MEL. Consequently, a provision of ' 217 Crore had been recorded in the previous year ended 31 March 2025.

f. The Supreme Court of India vide its order dated 25 July 2024 (the "Supreme Court Order") opined that the state governments have powers to levy additional taxes/cess on mineral bearing land and mining rights thereof and also held that royalty is not a tax. The Supreme Court vide its further order dated 14 August 2024, clarified that the state governments can levy or renew demands of tax/cess on the existing cases initiated on or after 01 April 2005 which will be payable in 12 annual installments commencing from 01 April 2026.

The Company and other miners had challenged the cess imposition under Goa Rural Improvement and Welfare Cess Act, 2000 (the "Act") in the High Court of Bombay, which upheld the Act's validity in September 2018. The Company's appeal is currently pending before the Supreme Court. As per management's assessment of the Supreme Court Order, the Company had recorded a provision of ' 97 Crore in the previous year ended 31 March 2025.

(d) Non- current tax assets

Non- current tax assets of ' 1,005 Crore (31 March 2025: ' 1,245 Crore) mainly represents income tax receivable from Indian tax authorities by the Company 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.

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 and gas commitments;

• Mining commitments arising under production sharing agreements; and

• Completion of the construction of certain assets.

The amounts disclosed in this note include both Continuing Operations and Discontinued Operations

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. The matter is currently listed for hearing. This commitment pertains to Discontinued Operations.

(ii) 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 Incorporation, 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 871 MW (31 March 2025: 871 MW). During the current year, the Company has invested ' 121 Crore of which ' 117 Crore relates to discontinued operations (31 March 2025: ' 189 Crore) in Optionally Convertible Redeemable Preference shares ("OCRPS”) of ' 10 each, of Serentica group companies. These OCRPS will be converted into equity basis conversion terms of the PDA, resulting in the Company holding twenty six percent stake in its equity. As at 31 March 2026, total outstanding commitments related to PDA with Serentica group companies are ' 194 Crore of which ' 188 Crore relates to discontinued operations (31 March 2025: ' 315 Crore).

B) Guarantees

The aggregate amount of indemnities and other guarantees on which the Company does not expect any material losses is ' 26,153 Crore, of which ' 9,814 Crore relates to discontinued operations (31 March 2025: ' 24,954 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 ' 995 Crore relating to the export and payment of import duties on purchases of raw material and capital goods of which ' 980 Crore relates to discontinued operations (31 March 2025: ' 1,595 Crore).

b) Guarantees issued for the Company's share of minimum work programme commitments of ' 4,512 Crore which relates to discontinued operations (31 March 2025: ' 3,833 Crore).

c) Guarantees of ' 221 Crore (31 March 2025: ' 71 Crore) issued under bid bond.

d) Bank guarantees of ' 115 Crore (31 March 2025: ' 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. The Company has secured this guarantee by equivalent amount of fixed deposits.

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 ' 15,253 Crore (31 March 2025: ' 14,900 Crore) (Refer Note 39).

f) Other guarantees worth ' 5,057 Crore of which ' 4,322 Crore relates to discontinued operations (31 March 2025:

' 4,440 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 ' 192 Crore, of which ' 100 Crore relates to discontinued operations (31 March 2025: ' 2,247 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 ' 39 Crore of which ' 17 Crore relates to discontinued operations (31 March 2025: ' 604 Crore) reduced in proportion to actual exports, plus applicable interest.

The Company has given bonds of ' 263 Crore which relates to discontinued operations (31 March 2025: ' 655 Crore) to custom authorities against these export obligations.

D) Contingent Liabilities

The Company discloses the following legal and tax cases as contingent liabilities:

a) 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 Hon'ble 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 Hon'ble 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 Hon'ble Supreme Court. Following the order of the Hon'ble Supreme Court, the Company filed writ petitions in respective High Courts.

On 09 October 2017, the Hon'ble Supreme Court held that states have the jurisdiction to levy entry tax on imported goods. With this Hon'ble 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 ' 436 Crore (31 March 2025: ' 654 Crore) including interest and penalty till the date of order. Further, interest and penalty if any, would be additional. This contingency pertains to Discontinued Operations.

b) Miscellaneous disputes- Income tax

The Company is involved in various tax disputes amounting to ' 263 Crore, of which ' 169 Crore relates to discontinued operations (31 March 2025: ' 263 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, 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.'¹ C) Miscellaneous disputes- Others

The Company is subject to various claims and exposures which arise in the ordinary course of conducting and financing its business from the excise, indirect tax authorities and others. These claims and exposures mostly relate to the assessable values of sales and purchases or to incomplete documentation supporting the Company's returns or other claims.

The approximate value of claims (excluding the items as set out separately above) against the Company totals to ' 2,555 Crore, of which ' 2,502 Crore relates to discontinued operations (31 March 2025: ' 2,527 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.

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. ¹

L) The Company reduced its loan receivable from Vedanta Limited ESOS Trust by repayment of ' 134 Crore (31 March 2025: ' 83 Crore) on exercise of stock options by employees. Further, the Company has given an additional loan of ' 387 Crore (31 March 2025: ' 43 Crore) to Vedanta Limited ESOS Trust for purchase of shares.

M) 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.

N) The Company has a Brand license and strategic service fee agreement ("the Agreement”) with VRL for the use of brand 'Vedanta' and providing strategic services which envisaged payment to VRL at 3% of turnover of the Company. During the year ended 31 March 2024, VRL assigned the Agreement including sublicensing agreement to its wholly owned subsidiary, VRIL, whereby the Company will fulfil its obligations under the Agreement via VRIL with effect from 01 April 2024. The Company has recorded an expense of ' 2,408 Crore for the year ended 31 March 2026 (31 March 2025: ' 2,056 Crore). The Company generally pays such fee in the beginning of the year, based on its estimated annual turnover.

Furthermore, the Company had sublicensed the Agreement to its subsidiary, Hindustan Zinc Limited (HZL), orignally at 2% of its turnover, at net sublicensing fee of 1.70% of HZLs annual consolidated turnover which has been amended to 3% of its turnover, at net sublicensing fee of 2.5% with effect from 01 April 2025. The Company also executed a sublicensing agreement with Ferro Alloys Corporation Limited (FACOR) at 3% of its turnover, at net sublicensing fee of 2.50% of FACOR's annual consolidated turnover with effect from 01 April 2024. Consequently, for the year ended 31 March 2026, the Company has recorded income of '1,203 Crore (31 March 2025: '686 Crore) and an expense of '1,002 Crore (31 March 2025: '582 Crore).

O) During the year ended 31 March 2025, 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 2026 is ' 5 Crore (31 March 2025: ' 5 Crore). The loan is unsecured in nature and carries an interest rate of 10.40% 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 ' 687 Crore (31 March 2025: '2,069 Crore) on which an agency commission of ' 3 Crore (31 March 2025: ' 10 Crore) is paid to VRL.

Q) 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.

During the year ended 31 March 2025, based on updated benchmarking analysis conducted by independent experts, the Group has executed revised agreement with VRL with effect from 01 April 2024. The Group will pay an annual guarantee fee of US$ 9 million (31 March 2024: US$ 10 million) for the OALP Blocks and fee of US$ 5 million (31 March 2024: US$

5 million) for the RJ-ON-90/1 block, in ratio of participating interests held equally by the Company and its step-down subsidiary, Cairn Energy Hydrocarbons Ltd ("CEHL').

Accordingly, the Company has recorded a guarantee commission expense (excluding tax) of ' 103 Crore (US$ 11.5 million) (31 March 2025: ' 118 Crore (US$ 14 million)) for the year ended 31 March 2026 and no amount remained (31 March 2025: ' 1 Crore (US$ 0 million)) outstanding as a pre-payment as at 31 March 2026.

R) During the previous year ended 31 March 2025, VRL through its wholly owned subsidiary VRHL, regained control of Konkola Copper Mines Plc ("KCM") w.e.f. 31 July 2024. The Company had an outstanding receivable of ' 212 Crore (predominantly regarding monies advanced against purchase of copper cathode/anode) from KCM, which were fully provided for in the books of accounts, in earlier years.

40 (a) The Company has incurred gross amount of ' 210 Crore (31 March 2025: ' 262 Crore) towards Corporate Social Responsibility (CSR) as per Section 135 of the Companies Act, 2013:

42 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:

43 Other matters

a) The Company purchases bauxite under long term linkage arrangement (^,MILTL^IM) with Odisha Mining Corporation Ltd ("OMC”) at provisional price of ' 1,000/MT from October 2020 onwards, based on interim order dated 08 October 2020 of the Hon'ble High Court of Odisha ("Odisha HC”), 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 ' 673/MT and supplied bauxite at this rate from September 2019 to September 2020 against an undertaking furnished by the Company to compensate any differential price discovered through future successful national e-auctions. Though OMC conducted the next e-auction on 31 August 2020 with floor price of ' 1,707/MT determined on the basis of Rule 45 of Minerals Concession Rules, 2016 ("the Rules”), no bidder participated at that floor price and hence the auction was not successful. However, OMC issued a demand of ' 281 Crore on the Company towards differential pricing and interest for bauxite supplied till September 2020, considering the auction base price of ' 1,707/MT.

The Company had then filed a writ petition before the Hon'ble Odisha HC, which issued an interim Order dated 08 October 2020 directing that the Company shall be permitted to lift the quantity of bauxite mutually agreed on payment of ' 1,000/MT after 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 ' 2,011/MT, which again was not successful. On 18 March 2021, Hon'ble Cuttack High court issued an order that the current arrangement of bauxite price of ' 1,000/MT will continue for the FY 2021-22. Further, on 06 April 2022, Hon'ble 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 Hon'ble Odisha High Court seeking directions for OMC to continue the supplies for FY 2023-24 and extend the LTL agreement. Hon'ble 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 Hon'ble court, LTL was executed with OMC on 16 May 2023 for supply of 2.4 MT bauxite annually at a price of ' 1000/MT.

During September 2023 to March 2026, OMC has conducted 19 National E-auctions for sale of bauxite quantities ranging from 50KT to 600KT at floor prices ranging from ' 2,429/MT to ' 3,874/MT after considering the pricing of Rule 45 of the Rules. These auctions have largely been unsuccessful.

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 discovered in the last successful e-auction. However, as an abundant precaution, the Company has recognized purchases of Bauxite from September 2019 onwards, at the aforesaid rate of ' 1,000/MT. This matter pertains to Discontinued Operations.

(b) 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; recovery of exploration costs incurred after the Exploration phase; and certain other matters aggregating to ' 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 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 8 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 allowing some aspects of the audit objections raised. Further, the Tribunal had decided that the Company was allowed to claim cost recovery of exploration cost as per terms of the Production Sharing Contract.

Pursuant to the Award, the Company had recognised a benefit of ' 2,381 Crore (US$ 289 million) in revenue from operations in financial year ended 31 March 2024. The Company has adjusted the profit petroleum liability against the aforesaid benefit.

The GoI filed interim relief application to the Tribunal on 3 February 2024 stating that the Company has unilaterally enforced the Award although the quantification of the same is pending. The Tribunal vide its order dated 29 April 2024 denied the GoI's interim relief application. The GoI has filed an appeal before the Hon'able Delhi High Court ("Section 37 Appeal”) challenging Tribunal's order dated 29 April 2024. On 11 July 2025, the Hon'able Delhi High Court dismissed GOI's Section 37 Appeal in Company's favour. The GOI has filed a SLP before the Hon'able Supreme Court challenging Hon'able Delhi High Court's order dated 11 July 2025. The matter is listed for hearing on maintainability of the SLP on 29 July 2026. Without prejudice to its rights under the proceedings, the Company has paid a sum of ' 257 Crore (US$ 29 million) during the year ended 31 March 2026.

In the interim, quantum proceedings have commenced. The Company has filed its claim for US$ 256 million before the Tribunal and the GOI, while disputing the claim of the Company, has filed a counter claim of US$ 105 million to the

Tribunal. As Vedanta's claim of US$ 256 million is largely on account of disintegration of the Virtual Development Areas (""DAs"") (that were created on account of Office Memorandum 13 & Office Memorandum 19) into the main DA, the management believes that Vedanta has a good case on merits. The GOI's claim of US$ 105 million is based largely on the argument that the Work Programme & Budget (""WP&B"") was not reviewed by the GOI. It is Vedanta's submission that the WP&B were submitted to DGH for review. Hearing on the matter concluded in March 2026. The arbitration award is awaited on this matter.

The GoI had also filed a challenge against the Award on 7 March 2024 in Hon'able Delhi High Court ("Section 34 Application”). Notice has been issued in the matter. Till date, no stay has been granted on the operation of the Award.

Next date of hearing is 8 May 2026. The Company believes that the Court may not re-appreciate the evidence in Section 34 Application, as the interpretation by the Tribunal is plausible.

(c) 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 which rendered a decision on the ONGC Carry in favour of the contractor parties whereas four other issues were decided in favour of the Government of India (GoI) in October 2004 (Partial Award) and final award in 2017.

The GoI then proceeded to challenge the ONGC Carry decision before the Malaysian courts, as Kuala Lumpur was the seat of the arbitration. The Federal Court of Malaysia upheld the Partial Award. As the Partial Award did not quantify the sums, therefore, contractor parties approached the same Arbitration Tribunal to pass a Final Award in the subject matter since it had retained the jurisdiction to do so. The Arbitral Tribunal was reconstituted and the Final Award was passed in October 2016 in Company's favour. The 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. Hearing in the matter is completed, and the matter is reserved for pronouncement of the judgement. Judgement awaited.

The Company has filed an enforcement application before Delhi High Court, which is disputed by GOI and GOI has demanded approximately ' 601 Crore (US$ 64 million) plus interest (31 March 2025: ' 546 Crore (US$ 64 million) plus interest). The Company does not believe that the GoI will be successful in its challenge as the Arbitrual Award has been appeaeld multiple times and has finally been upheld by the Federal Court of Malaysia in favour of the Company. This matter pertains to Discontinued Operations.

44 The Company's Production Sharing Contract (PSC) for the Cambay Block (CB-OS/2) expired on 29 June 2023. The

Company, along with its joint venture partners, had submitted an application for extension of the PSC on 28 June 2021, under the Government of India's 2017 Extension Policy. The Company received few temporary short-term extensions in the interim. The carrying value of Property, Plant and equipment/ Capital work-in progress and receivables from other joint venture partner in Cambay block is '470 Crore (US$ 50 million).

The Ministry of Petroleum & Natural Gas (MoPNG) vide its letter dated 19 September 2025 has not accepted the application for extension of the PSC, citing delays, procedural and contractual non-compliances.

The Company has challenged the said letter before the Hon'ble Delhi High Court through a writ petition filed in September 2025, primarily on the grounds that the rejection is arbitrary and did not consider relevant factors under 2017 Extension policy. Pursuant to the Delhi High Court's judgement dated 6 January 2026, notices have been issued in the matter and the parties have been directed to maintain status quo.

Reply has been filed by the DGH and ONGC and Company has filed its rejoinder. DGH has also filed an application seeking vacation of the interim order. The matter is being heard.

Based on provisions of PSC, and its interpretation of 2017 extension policy, management believes that that extension would be granted by MoPNG as the application for extension of the PSC was made in compliance with the timelines and criteria under the 2017 Extension Policy. Accordingly, no adjustments have been made to the standalone financial statements for the year ended 31 March 2026.

45 Scheme of Arrangement for demerger

The Board of Directors, in its meeting held on 29 September 2023, had approved a Scheme of Arrangement ("the Original Scheme”) for demerger of various businesses of the Company, namely, 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 & Steel (represented by Iron Ore segment and Steel and Cement business) Undertakings, resulting in 6 separate companies (including Vedanta Limited, being the demerged Company), with a mirrored shareholding and consequent listings at BSE Limited and National Stock Exchange of India Limited ("the Stock Exchanges"). The Stock Exchanges gave their noobjection to the Scheme.

A first motion application, in respect of the Original Scheme, was filed by demerged company (i.e., Vedanta Limited) and four resulting companies (i.e., Vedanta Aluminium Metal Limited ("VAML'), Malco Energy Limited ("MEL'), Vedanta Base Metals Limited ("VBML') and Vedanta Iron and Steel Limited ("VISE)) before the Hon'ble National Company Law Tribunal, Mumbai Bench ("NCLT”) on 06 August 2024 ("VEDL First Motion''). The Hon'ble NCLT by way of its order dated 21 November 2024 ("VEDL NCLT Order”) inter alia:

a) directed the Company to convene a meeting of its equity shareholders, secured creditors and unsecured creditors within 90 days of the date of receipt of the Order;

b) directed MEL to convene a meeting of its secured and unsecured creditors within 90 days of the date of receipt of the Order;

c) dispensed with the meeting of equity shareholders of VAML, MEL, VBML and VISL; and

d) dispensed with the meeting of secured and unsecured creditors of VAML, VBML and VISL.

In December 2024, Vedanta Limited and other five resulting companies decided not to proceed with implementation of Part V of the Original Scheme, i.e., demerger of Base Metal undertaking into VBML, along with making appropriate updates to the Original Scheme ("Scheme”). The non-implementation of the demerger of the Base Metals undertaking shall not affect any other parts of the Original Scheme described above.

In compliance with VEDL NCLT Order, the meetings were held on 18 February 2025 and the Scheme (with modification to exclude demerger of Base Metals Undertaking) was approved by the equity shareholders, secured creditors and unsecured creditors of the Company, as well as the secured and unsecured creditors of MEL.

On 5 March 2025, Vedanta Limited along with VAML, MEL and VISL, filed a second motion petition before the Hon'ble NCLT inter alia seeking sanction of the Updated Scheme. After multiple hearings with the Hon'ble NCLT, the Updated Scheme has been approved by the Hon'ble NCLT vide its order dated 16 December 2025.

Further, a separate first motion application was filed by Talwandi Sabo Power Limited ("TSPL'), one of the resulting companies, with the Hon'ble NCLT, Mumbai on 22 October 2024 ("TSPL First Motion”) for demerger of Merchant Power Undertaking of the Company, since TSPLs Registered Office ("RO”) was in the process of being changed from Mansa (Punjab) to Mumbai (Maharashtra) at the time of filing VEDL First Motion. The Hon'ble NCLT, Mumbai by its order dated 4 March 2025, disposed the TSPL First Motion by rejecting the scheme ("TSPL NCLT Order”). In an appeal filed by TSPL, the TSPL NCLT Order has been set aside by the Hon'ble NCLAT, New Delhi vide order dated 15 September 2025 and the matter has been remanded to the Hon'ble NCLT for proceeding with TSPL First Motion. The Hon'ble NCLT by way of its order dated 17 October 2025 inter alia directed (i) dispensation of the meeting of equity shareholders of TSPL; and (ii) TSPL to convene a meeting of its secured creditors and unsecured creditors within 90 days of the date of receipt of the order. The meetings were held on 21 November 2025, and the Scheme was approved by the secured creditors and unsecured creditors of TSPL. On 25 November 2025, TSPL filed a second motion petition before the Hon'ble NCLT inter alia seeking sanction of the Updated Scheme. The Updated Scheme has been approved by the Hon'ble NCLT vide its order dated 9 January 2026.

Consequently, the receipt of aforesaid NCLT approval, being one of the substantial approvals, meets the highly-probable criteria prescribed in Ind AS 105 ""Non-current Assets Held for Sale and Discontinued Operations^,MI for presentation of the Updated Scheme as discontinued operations. Hence Aluminium undertaking, Oil and Gas undertaking, Iron Ore undertaking and Power undertaking have been disclosed as discontinued operation in financial statements. Accordingly, all previous period figures in the statement of profit and loss have also been re-presented/re-computed.

The Board of Directors, at its meeting held on 20 April 2026, has inter alia, approved the following:

i. To make the Scheme effective on 1 May 2026; and

ii. In consultation with VAML, TSPL, MEL and VISL, the Board has fixed 1 May 2026, as the record date for determining the shareholders eligible to receive consideration pursuant to the Scheme.

The impact of the demerger would be given in the period when all substantial conditions as per Scheme are fulfilled/ met.

Total expense includes finance cost which has been allocated between continuing and discontinued operations based on best estimate of debt allocation between business divisions of Vedanta Limited as at 31 March 2026. Accordingly finance cost of comparative periods have been regrouped between continuing and discontinuing operations.

46 During the year ended 31 March 2026, a short seller has published reports alleging certain matters against some of the Vedanta Group entities including the Company. Based on management assessment, legal advice obtained, and involvement of external experts, management 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. During and subsequent to the year ended 31 March 2026, Company has received requests for information and summons for production of documents from the regulators. These are being submitted within relevant due dates and no further communication has been received thereafter. Based on the above, management is confident that no adjustments are required to these financial statements and financial information of the Company for year ended 31 March 2026 or any prior periods with respect to the allegations in the short seller reports published

till date.

47 Subsequent events

(a) Subsequent to 31 March 2026, an incident has occurred at a boiler of Company's Athena Power Plant located at Singhitarai, Chhattisgarh on 14 April 2026. The plant has been taken out of operation, and a detailed technical assessment is currently underway. Based on management's preliminary assessment and information available as at the date of approval of these financial statements, the incident is not expected to have a net material impact on the Company's financial position, statement of operations, or cash flows. Management continues to monitor the situation and will take necessary actions, if required.

(b) There are other no material adjusting or non-adjusting subsequent events, except as already disclosed.

48 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. Further, no instance of audit trail feature being tampered was noted in respect of the software. Additionally, the Company preserved audit trail in full compliance with the requirements of section 128(5) of the Act to the extent it was enabled and recorded.

49 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).

1

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.