Vedanta : Integrated Annual Report 2019-20

September 08, 2020 at 06:35 am EDT

ABOUT VEDANTA LIMITED

Vedanta Limited (Vedanta, VEDL), a subsidiary of Vedanta Resources Limited, is one of the world's leading natural resources companies with signiﬁcant operations in oil & gas, zinc, lead, silver, copper, iron Ore, steel, and aluminium & power, across India, South Africa, Namibia, and Australia.

OUR REPORTING SUITE

Vedanta Resources Limited Sustainability Report (SR) 2018-19

Information coverage: Disclosures on triple bottom line performance

Standards/guidelines used: Global Reporting Initiative

(GRI) Standards

Vedanta Limited Tax Transparency Report (TTR) 2018-19

Information coverage: Voluntary disclosure of proﬁts made and taxes paid (only Indian Company to publish a TTR)

Standards/guidelines used: Indian Accounting Standards (Ind AS)

Vedanta Limited Integrated Report (IR) and Annual Accounts 2018-19

Information coverage: Holistic disclosure of performance and strategy

Standards/guidelines used: International Integrated Reporting Framework, Indian Accounting Standards (Ind AS), Indian Secretarial Standards

Scope And boundARy

ABOUT THE REPORT

Inspired by our values, we remain committed to disclosing relevant information pertaining to our material issues, with highest standards of transparency and integrity. It is towards this end that we continue to communicate our annual performance and future strategy through Integrated Reporting . This is our third such report, prepared in accordance with the International Integrated Reporting Framework, outlined by the International Integrated Reporting Council (IIRC).

Our journey commenced in FY2018 and we were one of the very ﬁrst natural resources companies in India to publish an integrated report. These reports are prepared to assist our stakeholders, primarily the providers of ﬁnancial capital, to make an informed assessment of our ability to create value over the short, medium and long term. They strive to demonstrate our conﬁdence, capacity to grow and our ability to deliver on set strategies that can drive signiﬁcant ﬁnancial and non-ﬁnancial value for everyone.

This report covers the reporting period from 1 April 2019 to 31 March 2020 and provides 360o information on Vedanta Limited (Vedanta, VEDL), a subsidiary of Vedanta Resources limited.

It provides an overview of operations across our business units, namely, Zinc-Lead-Silver, Oil & Gas, Aluminium, Power, Iron Ore, Steel and Copper. Our assets are spread across India, South Africa and Namibia, and across the value chain comprising exploration, asset development, extraction, processing and value accretion activities.

This report aims to provide a concise explanation of VEDL's performance, strategy, operating model, business outputs and outcomes using a multi-capital approach. It includes measures of engagement with identiﬁed material stakeholder groups and outlines the organisation's governance framework, together with our risk-mitigation strategy.

AppRoAch To mATeRIALITy

This report contains information that we believe is of interest to our stakeholders and presents a discussion around matters that can impact our ability to create value over the short, medium and long terms.

AppRoAch To STAkehoLdeR engAgemenT Our stakeholders are those individuals ororganisations who have an interest in, and/or whose actions impact our ability to execute our strategy. We periodically engage with diﬀerent stakeholder groups and actively respond to their concerns and issues.

AnnuAL AccounTS

This report should be read in conjunction with the annual accounts (page 271 to 502) to gain a complete picture of VEDL's ﬁnancial performance.

The consolidated and standalone ﬁnancial statements in our printed report have been prepared in accordance with the Indian Accounting Standards (Ind AS) notiﬁed under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) and have been independently audited by by S.R.Batliboi & Co. LLP. The Independent Auditor's Report for both consolidated and standalone ﬁnancials can be found on page 271 and 376 respectively.

boARd And mAnAgemenT ASSuRAnce The Board of Directors and the Company's management acknowledge their responsibility to ensure the integrity of information covered in this report. They believe, to the best of their knowledge, that this report addresses all material issues and presents the integrated performance of VEDL and its impact in a fair and accurate manner. The report has therefore been authorised for release on 06 June 2020.

06-115 InTegRATed RepoRToVeRVIew

Vedanta at a glance 6

Group highlights 14

Investment case 16

Chairman's statement 18

CEO's message 22

cASe STudIeS

Vedanta Aluminium (Lanjigarh) 26

Hindustan Zinc Limited 28

Cairn Oil and Gas 30

InTegRATed AppRoAch

Value-creation model 32

Strategic framework 36

Key performance indicators 40

Business risks 44

Board of directors 52

At Vedanta, we unearth and harness the inﬁnite potential of natural resources in the most sustainable manner to enable a better world for all.

Our brand promise is built on the premise that everything we enjoy on Earth comes from beneath it. It's these resources that help us live, grow and sustain. We are in the business of exploring and transforming natural resources sustainably with a long-term growth focus. We follow sustainable & responsible exploration and mining practices, to fulﬁl India's natural resource requirements and contribute to the nation's resource suﬃciency.

Our strategy is to focus on all-round operational excellence, allocate capital judiciously, maintain a resilient balance sheet, augment our Reserves and Resources (R&R) base, identify and deliver on growth opportunities. In doing so, we create lasting value, led by state-of-the-art technology, a zeal for innovation, an expert workforce and an unﬂinching commitment to sustainability.

TABLE OF CONTENTS

Management committee 56

Executive committee 58

SuSTAInAbILITy And eSg

Managing our business sustainability 64

Firm foundation for lasting value 66

Our sustainability management approach 70

Stakeholder engagement 72

Materiality assessment 74

Environmental stewardship 78

Social focus 86

Safety 94

People and culture 98

Business responsibility report mapping 104

AwARdS And AccoLAdeS 112

116-167 mAnAgemenT ReVIew
Market review 116
Management discussion and analysis 128
168-270 STATuToRy RepoRTS
Directors' report 168
Report on corporate governance 226
271-502 FInAncIAL STATemenTS
Standalone ﬁnancials 271
Consolidated ﬁnancials 376

Vedanta Limited is one of the world's largest suppliers of natural resources, with primary operations in zinc-lead-silver, iron ore, steel, copper, aluminium, power, oil & gas. Our strategic capabilities and alliances are singularly focused on creating and preserving value for our esteemed clients and the wider stakeholder fraternity. Together, we help the world grow in a responsible manner.

Our portfolio of world-class, low-cost, scalable assets consistently generate strong proﬁtability and deliver robust cash ﬂows. Our core divisions have industry-leading market shares, and we continuously strive to raise the bar across our wide canvas of operations.

3.26 million

CSR programme beneﬁciaries

₹ 21,061 crore

EBITDA

₹ 7,130 crore

~₹ 32,400 crore

Total contribution to the national exchequer

Largest

Natural resources Company in India

Free cash ﬂow (post-capex)

9 million+ tCOˆe in avoided emissions, over the last eight years, as a result of our Greenhouse Gas (GHG) reduction programme

TSPL Plant

OUR VALUE CHAIN

WHAT WE DO

EXPLORATION

We have consistently added more to our Reserves and Resources (R&R) through brownﬁeld and greenﬁeld activities. This helps us to extend the lives of our existing mines and oilﬁelds.

ASSET DEVELOPMENT

We have a strong track record of executing projects on time and within budget. We take special care to develop the resource base to optimise production and increase the life of the resource. We also strategically develop processing facilities.

EXTRACTION

Our operations are focused on exploring and producing metals, extracting oil & gas and generating power. We extract zinc-lead-silver, iron ore, steel, copper and aluminium. We have three operating blocks in India producing oil & gas.

PROCESSING

We produce reﬁned metals by processing and smelting extracted minerals at our zinc, lead, silver, copper, and aluminium smelters, and other processing facilities in India and Africa. For this purpose, we generate captive power as a best practice measure and sell any surplus power.

VALUE ADDITION

We meet market requirements by converting the primary metals produced into value added products such as sheets, rods, bars, rolled products, etc. at our zinc, aluminium and copper businesses.

Refer to People & Culture Section on Page 98-103.

WELL‰RESOURCED TO CREATE LONG‰TERM VALUE

73.07 million tonnes

Iron ore reserves

WHAT DRIVES US

OUR PURPOSE

Our values nurture our culture and underpin our growth and success for the long term. Our ~80,000 strong workforce knows what is critical, how we work together as a team and the way in which growth and sustainable development are at the centre of what we do.

These are universal values, which guide us as we expand into unexplored markets and countries. Our people are our best brand ambassadors, who are

1,194 mmboe

Oil & gas reserves & resources

73.07 million tonnes

Bauxite reservesempowered to drive excellence and innovation and we demonstrate world-class standards of governance, safety, sustainability and social responsibility.

Our business was built with a simple mission envisioned by the Group's Chairman, Anil Agarwal: To create a leading global natural resource Company. We also make signiﬁcant contributions to society as we continue to create jobs, thus supporting our host communities through our various social programmes in the areas of childcare, health, education and women empowerment. As one of the largest contributors to the national exchequer, we create and distribute signiﬁcant value along our entire supply chain.

WHAT UNDERPINS US

OUR CORE VALUES

Entrepreneurship

Trust	Care	Integrity
Innovation	Respect	Excellence

A SIGNIFICANT CONTRIBUTOR TO INDIA'S LARGE ECONOMY

Vedanta's GDP Contribution

2.2%

INDUCED IMPACT

O.40%

DIRECT IMPACT

INDIRECT IMPACT

Vedanta inﬂuences consumption patterns of employees and suppliers by generating jobs and creating induced impact on India's economy, equivalentto 2.20% of the country's GDP

Vedanta directly contributes 0.40% to India's GDP through it's operations

The indirect impact of Vedanta through it's supplier network is as large as 1% of India's GDP

Note: Shareholding as on 31 December 2019 *50% of the share in the RJ Block is held by a subsidiary of Vedanta

WELL‰STRUCTURED TO DELIVER VALUE‰ACCRETIVE GROWTH

Division of Vedanta Limited

ƒ Sesa Iron Ore
ƒ Sterlite Copper
ƒ Power (600 MW Jharsuguda)
ƒ Aluminium
(Odisha Aluminium and Power assets)
ƒ Cairn Oil and Gas*

Zinc India

(HZL)

Bharat Aluminium (BALCO)

Talwadi Sabo Power

(TSPL) (1,980 MW)

Zinc International

(Skorpion: 100% and Black Mountain

Mine: 74%)

Electrosteels Steel Limited

(ESL)

100%

96%

DELIVERING VALUE ACROSS BUSINESSES

We operate across seven key verticals and assume market-leading positions with our scale, innovation and commitment to responsible value creation.

ZINC-LEAD-SILVER

77% market share in India's primary zinc market

BUSINESS Zinc India

(Hindustan Zinc Limited- HZL) Zinc International

PRODUCTION VOLUME Zinc India (HZL)

• Zinc: 870 kt
• Silver: 610 t
• Lead: 182 kt

Zinc International: 240 kt

EBITDA (In ₹ crore)

• Zinc India (HZL): 8,714
• Zinc International: 380

ASSET HIGHLIGHTS

ƒ World's largest fully integrated zinc-lead producer
ƒ World's second largest zinc mine at Rampura Agucha, India
ƒ 6th largest silver producer in the world
ƒ Developing the largest undeveloped zinc deposit in the world at Gamsberg, South Africa
ƒ Zinc India has R&R of 403 million tonnes with mine life of ~25 years
ƒ Zinc International has R&R of 509 million tonnes, supporting mine life in excess of 30 years
ƒ HZL is a low-cost zinc producer, which lies in the ﬁrst decile of the global zinc cost curve

APPLICATION AREAS

ƒ Galvanising for infrastructure and construction sectors

ƒ Die-casting alloys, brass, oxides and chemicals

OIL & GAS

Operatesof India's crude 26% oil production

BUSINESS Cairn India

PRODUCTION VOLUME

174 kboepd

(Average Daily Gross Operated Production)

EBITDA (In ₹ crore):

7,271

ASSET HIGHLIGHTS

World's longest continuously heated pipeline from Barmer to Gujarat Coast (~670 kms)

ƒ 136 wells drilled, 41 wells hooked up in FY2020 growth phase
ƒ Early gas production facility ramped up to designed capacity of 90 mmscfd
ƒ Largest private sector oil & gas producer in India
ƒ Executing one of the largest polymer EOR projects in the world
ƒ Footprint over a total acreage of ~65,000 sq km
ƒ Gross proved and probable reserves and resources of 1,194 mmboe

APPLICATION AREAS

ƒ Crude oil is used by hydrocarbon reﬁneries ƒ Natural gas is mainly used by the fertiliser sector

ALUMINIUM

market share in primary 37% Indian aluminium market

BUSINESS

Aluminium smelters at Jharsuguda and Korba (BALCO), Lanjigarh Alumina Reﬁnery

PRODUCTION VOLUME Aluminium: 1,904 kt

Alumina: 1,811 kt

EBITDA (In ₹ crore)

1,998

ASSET HIGHLIGHTS

ƒ Largest installed aluminium capacity in India: 2.3 million tonnes per annum (mtpa)
ƒ Strategically located large-scale assets with integrated power and an alumina reﬁnery
ƒ 37% market share among domestic primary aluminium producers
ƒ Emerged as the highest bidder for Jamkhani coal block, strategically located near Jharsuguda alumina smelter

APPLICATION AREAS

ƒ Used primarily in automotive, building & construction, transportation and electrical industries

Product portfolio includes ingots, wire rods, billets, primary foundry alloys, slabs and rolled products

Power plants at Talwandi Sabo, Jharsuguda and Korba

One of India's largest power generators with 9GW diversiﬁed power portfolio

ƒ TSPL is the largest thermal power producer in of Punjab India
ƒ 3.3 GW of commercial power generation capacity, with balance for captive usage
ƒ Leading producers of wind power in India: 96% thermal power and 4% from renewable energy sources

ƒ 63% is for captive use while 37% is used for commercial purposes; of which c.95% is backed by long-term Power Purchase Agreements with local Indian distribution companies

IRON ORE & STEEL

One of the largest iron ore miners in India

BUSINESS Iron Ore India Electrosteel India

PRODUCTION VOLUME

• Pig Iron: 681 kt
• Steel: 1,231 kt

EBITDA (In ₹ crore)

Iron: 878

Steel: 588

ASSET HIGHLIGHTS Iron Ore

ƒ Karnataka iron ore mine with R&R of 73 million tonnes, and life of 17 years

ƒ Value added business: 3 blast furnaces (0.8mtpa), 2 coke oven batteries (0.5mtpa) and 2 power plants (60MW)

Steel ƒ Design capacity of 2.5 mtpa; ƒ Largely long steel product

APPLICATION AREAS

ƒ Construction, infrastructure, transport, energy, packaging, appliances and industry

ƒ Product portfolio includes pig iron, billets, TMT bars, wire rods and ductile iron pipes

CONSISTENT PERFORMANCE

ƒ Q4FY2020 hot metal cost of production signiﬁcantly better at US$1,451 per tonne, 20% lower y-o-y

ƒ Revenue at ₹83,545 crore, 8% lower y-o-y (FY2019: ₹90,901 crore) mainly driven by subdued commodity prices, lower volume at Zinc India, lower volume at Oil & Gas business and lower power sales at TSPL, partially oﬀset by additional volumes from Gamsberg operations, higher sales volume at Aluminium business, Iron Ore Karnataka & Steel business and rupee depreciation.
FINANCIAL HIGHLIGHTS
ƒ EBITDA at ₹21,061 crore, 12% lower y-o-y (FY2019: ₹24,012 crore)
ƒ Robust adjusted EBITDA margin of 29% (FY2019: 30%)
ƒ ROCE at c.11% in FY2020 (FY2019: 13%)
ƒ Impairment relating to property, plant and equipment, exploration assets and claims & receivables of ₹17,636 crore (net of tax ₹11,037 crore) which mainly includes impairment at Oil & Gas Business of ₹15,907 crore, Copper Business of ₹721 crore, Iron Ore Business of ₹349 crore, Avanstrate Inc (ASI) of ₹504 crore and Fujairah Gold (FG) of ₹151 crore
ƒ Proﬁt Attributable to equity holders (before exceptional items) at ₹3,995 crore (FY2019: ₹6,857 crore)
ƒ Free cash ﬂow (FCF) post-capex of ₹7,130 crore (FY2019: ₹11,553 crore), driven by lower EBITDA and working capital blockage due to COVID-19 impact partially oﬀset by cost savings, lower capex outﬂow and lower tax outﬂow
ƒ Gross debt at ₹59,187 crore (FY2019: ₹66,225 crore), driven by repayment of debt at Vedanta Standalone, TSPL and temporary borrowing at Zinc India, partially oﬀset by increase in borrowing at Oil & Gas Business
ƒ Net debt at ₹21,273 crore (FY2019: ₹26,956 crore), primarily due to the repayment of debt, partially oﬀset by working capital blockage due to COVID-19 and dividend payment during the year
ƒ Strong ﬁnancial position with cash, liquid and structured investments of ₹37,914 crore (FY2019: ₹39,269 crore)
ƒ Crisil changed the outlook on Company's rating (CFR) from 'AA/Positive' to 'AA/Negative' driven by subdued commodity prices.
ƒ India ratings changed the outlook on Company's rating (CFR) from 'AA/Positive' to 'AA/Negative' driven by delay in deleveraging on account of fall in commodity prices and delay in volume ramp-up in zinc and oil business in March 2020. In May 2020, India Ratings downgraded the company's rating from AA to AA-, while maintaining the outlook as negative on account of higher expected balance sheet leverage due to substantial decline in economic activity due to COVID-19 related lockdown. The negative outlook reﬂects prolongedsubdued commodity prices in wake of COVID-19 outbreak and elevated reﬁnancing risk.

ƒ Contribution to the exchequer of ~₹32,400 crore in FY2020 (FY2019: ₹42,400 crore)
ƒ Realised power debtors of ~₹1,000 crore at TSPL, as per the Supreme Court Order.
ƒ Vedanta is implementing the approved resolution plan of acquisition of Ferro Alloys Corporation Limited (FACOR) as per NCLT approval dated January 30, 2020. FACOR is in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary, FACOR Power Limited (FPL).
ƒ Increase in Gamsberg production volume from 17 kt in FY2019 to 108 kt in FY2020
- ƒ Reﬁned zinc-lead production of 870 kt, down 3% y-o-y
The consideration payable for the acquisition of FACOR on a cash free and debt free basis is ₹10 crore as well as an equivalent of cash balance in FACOR's subsidiary, FPL as upfront consideration and zero coupon, secured and unlisted Non-Convertible Debentures of aggregate face value of ₹270 Crores to the Financial Creditors payable equally over 4 years commencing March 2021

BUSINESS HIGHLIGHTS FY2020 Zinc India

ƒ Record ore production of 14.5 million tonnes, despite disruptions on account of COVID-19

ƒ Mined metal production of 917 kt, down 2% y-o-y

Zinc International

ƒ Cost of production at US$1,665 per tonne, down 13% y-o-y

Particulars

ƒ Average gross production of 174 kboepd for FY2020
ƒ Early gas production facility fully commissioned to design capacity of 90 mmscfd
ƒ Construction of new gas processing terminal in progress to add another 90 mmscfd
ƒ Liquid handing capacity upgradation by 30% in progress
ƒ Production Sharing Contracts (PSC) signed for
Ravva block extended for 10 years
ƒ FTG survey completed in Assam and Kutch basins; seismic survey ongoing in OALP Blocks
ƒ Capex growth projects update
- ƒ Nine rigs are currently deployed; 136 wells drilled during FY2020
- ƒ Seven appraisal wells drilled in Vijay & Vandana, DP & MBH
- ƒ Two new wells hooked up in Ravva adding ~10kboepd of incremental volumes

Aluminium

ƒ India's highest aluminium production at 1,904 kt
ƒ Record alumina production from Lanjigarh reﬁnery at 1,811 kt, up 21% y-o-y
ƒ FY2020 hot metal cost of production lower at US$1,690 per tonne, 14% lower y-o-y

CONSOLIDATED GROUP RESULTS

a. Excludes custom smelting at Copper India and Zinc India operations
b. Exceptional Items gross of tax
c. Tax includes tax gain on exceptional items of ₹6,521 crore on special items in FY2020 (FY2019: charge of ₹112 crore); DDT included in Tax Expense in FY2020 is Nil (FY2019: credit was NIL
d. Previous period ﬁgures have been regrouped/rearranged wherever necessary to conform to current period presentation

Oil & Gas

Power

ƒ Record Plant Availability Factor (PAF) of 91% at the

1,980 MW TSPL plant in FY2020

Iron Ore

ƒ Goa operations remains suspended during the year due to state-wide directive from the Hon'ble Supreme Court; engagement continues with the government for the resumption of mining operations
ƒ Production of saleable ore at Karnataka at 4.4 million tonnes, up 6% y-o-y
ƒ Iron Ore sales at Karnataka at 5.8 million tonnes, up 125% y-o-y

Steel

ƒ Record annual steel production at 1.23 million tonnes for FY2020, up 3% y-o-y

ƒ Robust margin of US$127 per tonne during the last quarter (~26% EBITDA margin)

Copper India

ƒ Due legal process being followed to achieve a sustainable restart of the operations

FY2020

Net Sales/Income from Operations	83,545	90,901 (8)
EBITDA	21,061	24,012 (12)
EBITDA margina (%)	29%	30% -
Proﬁt before Depreciation and Taxes	18,220	21,432 (15)
Proﬁt before Exceptional items	9,127	13,240 (31)
Proﬁt after taxes	(4,743)	9,698 -
Proﬁt after taxes (before Exceptional Items)	6,122	9,490 (36)
Attributable PAT after exceptional items	(6,664)	7,065 -
Attributable PAT (before exceptional items)	3,995	6,857 (42)
Basic earnings per share (₹/share)	(18.00)	19.07 -
Basic EPS before exceptional items (₹/share)	10.79	18.50 (42)
ROCE (%)	11.2%	12.8%
Total Dividend (₹/share)	3.9	18.85

(₹crore, unless stated)

FY2019

% Change

FOR THE FUTURE

INVESTMENT CASE

WELL-POSITIONED

Natural resources represent a critical growth engine for the economy. As India's only diversiﬁed natural resources Company, we are very well positioned to make a signiﬁcant contribution to the nation's prosperity. Our investment case is focused on delivering sustainable, long-term returns to our shareholders and creating value for our larger stakeholder fraternity.

LARGE, LOW-COST AND DIVERSIFIED ASSET BASE WITH AN ATTRACTIVE COMMODITY MIX

Vedanta's large-scale, diversiﬁed asset portfolio, with an attractive cost position in many of its core businesses, positions us to deliver strong margins and free cash ﬂows through the commodity cycle.

factors and continuing supply- side constraints, beneﬁting global commodity prices, particularlyVedanta's core commodities, including zinc, aluminium and oil & gas.

Demand 2020-2030 CAGR

8.7%

India demandGlobal demandVedanta Limited Commodity Presence

We have an attractive commodity mix, with strong fundamentals and leading demand growth and focus on base metals and oil. The commodity markets strengthened in the second half of this ﬁnancial year, driven by improved demand

5.8%

5.4%

5.1%

5.0%

4.2%

2.4%

3.9%2.7%

2.1%

2.2%

1.3%

0.3%

2.8%0.4%

2.4%0.2%

CopperLeadMet Coal AluminiumZincIron OreNickelOil

Thermal

Source: Wood Mackenzie

Coal

IDEALLY POSITIONED TO CAPITALISE ON INDIA'S GROWTH POTENTIAL

India is our core market and it has a huge growth potential, given that thein infrastructure building, housing and industrialisation will generate

India's Growth Potential

current per capita metal consumption demand for natural resources. The

GDP

$27.6tn

is signiﬁcantly lower than the global average. The COVID-19 pandemic is inﬂicting signiﬁcant human costs in India and the world. Protecting lives and allowing healthcare systems to cope have required isolation, lockdowns, and widespread closures to ﬂatten the curve in India as in other parts of the world. Against this bleak backdrop, IMF predicts that the Indian economy is estimated to have grown by 1.9% in the ﬁnancial year. However, the economy's long-term potential remains robust, as it is likely to rebound to 7.4% in FY2021, provided the outbreak is contained and there is no recurrence. Once the economy reboots and the crisis blows over, strong liquidity in the economy and government impetus

country's high resource import bill oﬀers signiﬁcant opportunities for a diversiﬁed player like us.

(Nominal at $PPP) $11.3tn

CAGR 8.4%

2019

2030

The government has lately announced various policy measures to support the commodity sector, which augurs well for our operations.

Per capita income $19,345

(Nominal at $PPP)

$8,458

CAGR 7.5%

2019

2030

We are uniquely positioned to beneﬁt from India's growth due to: ƒ A diversiﬁed portfolio of established operations in India;

1.5bnPopulation

1.4bn

CAGR 0.9%

2019

2030

40%

ƒ A strong market position as India's largest base metals producer and largest private sector oil producer

Urbanisation

34%

CAGR 1.4%

2019

2030

An operating team with an extensive track record of executing projects and achieving growth

Source: IHS Markit

Commodity Demand Potential 2020

Aluminium Consumption Copper Consumption

(kg/capita)

Zinc Consumption (kg/capita)

Oil Consumption (boe/capita)

25.2

8.1

4.5

4.4

3.1

8.2

3.0

1.7

1.2

1.6

0.4

0.5

IndiaGlobalChina

Source: Wood Mackenzie, IMF, IHS Markit, BMI, BP Energy Outlook 2019

Note: All commodities demand corresponds to primary demand

WELL-INVESTED ASSETS DRIVING FREE CASH FLOW GROWTH

A signiﬁcant proportion of our capital investment programme has been completed, and we are now ramping up production to take advantage of our expanded capacity. We have already started seeing the results of our investments, with Zinc India and Aluminium delivering robust production in the past year, and we expect our Zinc International, particularly the Gamsberg project,

to provide further impetus to our Zinc business, going forward. In the Oil & Gas business, we have begun to implement our growth projects with a gross capex of over US$3.2 billion, and this will enable us to increase volumes in the near and medium term. These increases in production will lead to strong cash ﬂow generation through the cycle.

Growth Capex (`crore)

7,764

6,385

5,469

FY 18

FY 19

FY 20

STRONG FINANCIAL PROFILE

Our operational performance, coupled with a strong focus on optimisation of capital allocation, has helped maintain our ﬁnancial resilience. During FY2020, when it was still seen as a subdued environment for commodity prices, our focus on capital discipline and proﬁtability allowed us to deliver:debt maturities through proactive liability management exercises

Net Debt/EBITDA 1.1

ƒ Strong and robust FCF of ₹7,130 crore
ƒ Cash and liquid investments of ₹37,914 crore
- ƒ Revenues of ₹83,545 crore and EBITDA of ₹21,061 crore
ƒ A strong balance sheet, with respect to ND/EBITDA and gearing, compared to our global diversiﬁed peers
- ƒ Strong ROCE of ~11.2%
- ƒ Deleveraging and extension of our
ƒ Interim dividend of ~₹1,450 crores paid in FY2020

FY 18

FY 19

FY 20

PROVEN TRACK RECORD

Our management team has a diverse and extensive range of sector and global experience, which ensures that operations are run eﬃciently and responsibly, with key insights. We have taken a disciplined approach to development, growing our production steadily across our operations with an ongoing focus on operational eﬃciency and cost savings. Since our listing in 2003, our assets have delivered an average of 15% CAGR production growth.

Production Volumes

FY2018

FY2019

FY2020

1,600

1,3881,343

1,106

1,200

936 917

724

800

569 571

561

400

185 189

223

174

Oil & Gas	Underground	Open-cast	Aluminium	Aluminium
(kboepd)	mine Zinc	mine Zinc	Production	Production
Production	Production	Jharsuguda	Balco
(kt)	(kt)	(kt)	(kt)

CHAIRMAN'S STATEMENT

ENABLING A

WELL-RESOURCED FUTURE

With ample natural, human and technological resources and strong reform-focused democratic governance, India holds out hope that in the post-COVID era global businesses and investors look at reducing dependency on China. This will mean more jobs, more investments, rapid development and a great boost to the government's 'Make in India' initiative.

Anil Agarwal Chairman

Dear Stakeholders,

It is a great honour for me to share my thoughts with you as your Company's Chairman. This year, the Board welcomed and appointed me as the Non-Executive Chairman of Vedanta Limited. It is with great pride that I say, your Company has always been on a continuous journey of growth and expansion with best-in-class safety, benchmarked technology, and cost eﬃciency. We continuously ensure that we have the right management in place to drive our business and take the organisation to the next level. In line with this vision, we are pleased to announce that your Company will now be run by a guided Management Committee comprising of your Group Chief Executive Oﬃcer (CEO), Chief Financial Oﬃcer (CFO),Chief Human Resources Oﬃcer (CHRO) and Chief Commercial Oﬃcer (CCO).

I sincerely wish and pray that you all are safe at your homes. Your safety matters to us, as the world is currently grappling with an unprecedented health crisis that we all are ﬁghting together. These are undoubtedly testing times, but it also brings to the fore the undaunted and ingenious human spirit that prevails against all challenges. We, at Vedanta, salute this human spirit and solidarity of citizens and nations across the world, and reaﬃrm our commitment to work towards a self-reliant and sustainable future for all.

India's COVID response continues to be undoubtedly exemplary by global standards, and the Government of India, along with all state governments are coordinating eﬀectively to ﬂatten the curve. We, at Vedanta, are doing our bit in a modest way to help save lives and livelihoods. You will be happy to know that your Company has contributed ₹101 crore to the Prime Minister's Citizen Assistance and Relief in Emergency Situations (PM-CARES)

Vedanta Contributed ₹101 crore to the pm-CAREs Fund. The Company will also fund up to ₹200 crores in providing relief measures to communities across India.

Fund. Your Company will also fund up to ₹200 crore in providing relief measures to communities across India. The contribution to PM-CARES Fund will complement Vedanta's earlier commitment of creating a ₹100-crore corpus to cater to three speciﬁc areas - livelihood of the daily wage workers across the nation, preventive healthcare, support to its employees and contract partners across its plant locations.

PERFORMANCE DURING THE YEAR

As we have seen, the year was challenging, which tested our organisational mettle amidst a turbulent macro environment. However, our Company emerged stronger at the end of it, paving pathways for accelerated future growth.

The year saw us accomplishing robust production volumes in multiple segments and continued building our asset base, while improving asset integrity. We have further strengthened the Company with strong operational and productivity focus, enhanced our capital allocation framework to create long-term shareholder value and delivered a sound set of ﬁnancial outcomes. It is gratifying to note that we remained cashﬂow positive, while maintaining a resilient balance sheet. Our work continued in an uninterrupted manner across all key result areas.

As a testimony to our eﬀorts, we also

received well-accredited recognitions across governance, safety and environmental parameters, including moving up in the rankings of in the Dow Jones Sustainability Index (DJSI).

To summarise, it was a year where we could yet again validate the conﬁdence vested in us by everyone.

A GRADUAL ECONOMIC RECOVERY

In CY2019, the global economy seemed to be on a path to recovery. This was primarily led by the bottoming out of manufacturing activity and global trade and monetary policy easing by central banks the world over. This sentiment was further bolstered at the start of CY2020, in light of the progress in US-China trade talks and Brexit deal.

In what was expected to be a year of continued recovery, CY2020 now has a fresh challenge to combat in the form of the COVID-19 pandemic. Although it is early to ascertain its impact on global supply chains, consumer behaviour, overall business sentiment and supply-demand equations in the short term, we will have more clarity only over the medium term.

A pRo-gRowTh, pRo-BusInEss ENVIRONMENT IN INDIA

For India, FY2020 was characterised by several developments, including the re-election of the ruling party with an even larger mandate; the systemic identiﬁcation, restructuring and tidying up of prevailing issues in the ﬁnancial services sector; and the announcement of a slew of policy measures by the government.

While the clean-up applied temporary brakes on growth owing to a credit crunch, the ﬁscal and monetary policy announcements acted as a counterbalance, along with focus on keeping inﬂation under permissible limits. At the juncture that we are in, India faces its own unique opportunities and the priorities that come with it.

As we stand today, we have the reasons to believe that we are better positioned than any other nation with a visionary government, young working population, a conducive business environment and rising public expenditure.

With large-scale infrastructure spend on the horizon, the metals and mining sector is expected to receive a boost in demand both over the short as well as longer term. This growth will be further facilitated by the National Mineral Policy 2019, launched to ensure transparency, better regulation and enforcement, and to ensure a balance between social and economic growth. The Policy touches upon contemporary issues and guides on the adoption of scientiﬁc mining, technology and innovation, and environmental and social priorities. As Vedanta, we are well aligned to these guidelines and continue to set new benchmarks in good mining practices.

CHAIRMAN'S STATEMENT CONTINUED...

The government's announcements made through the year and as part of the Union Budget 2020-21 are directed at setting the stage for India's future growth. Among these, the National Infrastructure Pipeline with a projected total investment of ₹102 lakh crore (US$1.44 trillion) during the period FY2020-2025 deserves a special mention. It reinforces the government's commitment to build an India of the future with better connectivity and better resilience. It also has a direct and positive impact on heavy industries such as ours, with expected short- to medium-term buoyancy in demand. Other measures, such as a corporate tax cut, 100% FDI in coal mining, and merger of public sector banks are also noteworthy, which are directed at boosting the business climate in the country.

mETAls AnD mInIng - PROPELLING INDIA'S GROWTH

VEDAnTA - READy To sERVICE ThE NATION'S NEEDS

As India grows, so will its needs and aspirations. At Vedanta, we are focused on providing vital commodities that facilitate the everyday lives of Indians and service their needs. Vedanta as India's only diversiﬁed natural resources group is presented with a unique opportunity to provide the vital commodities the country needs for infrastructure development, asset creation, mobility, housing, consumer goods and general consumption. Together with everyone, we can harness thepotential of natural resources in the most sustainable manner to fuel the nation's progress. It is with this objective that we have reinforced our positioning as 'Vedanta, Desh ki Zarooraton ke liye.'

ConTRIBuTIng To nATIon- BUILDING

At Vedanta, our business performance contributes directly to the nation's economy. With over 40% of revenue being contributed to the national exchequer, we continue to deliver on our commitments, in the most transparent and ethical manner. We also employ closer to 80,000 on-roll and contractual personnel, thus creating a multiplier eﬀect on the economy. According to a recent report by Institute for Competitiveness, a subsidiary of IFC (part of the World Bank Group), Vedanta's operations contribute around ~1% to India's GDP.

As we grow further, we continue to play a pivotal role in India's social development stage, and maintain a strong social engagement through our corporate responsibility initiatives. During FY2020, we spent ~US$41 million, to touch the lives of over 3.26 million people.

Our core impact areas are education, health, sustainable livelihoods, women empowerment, sports and culture, environment and community development. Each of our Group companies have their own CSR agenda and they undertake associated interventions in one or more of the above impact areas. For example, BALCO actively supports the ﬁght against cancer through its 170-bed Medical Centre in Chhattisgarh, under the aegis of Vedanta Medical Research Foundation. Our ﬂagship CSR programme, Nand Ghar, is aimed at building modern community resource centres through the length and breadth of the nation. Conceived in association with the Ministry of Women and Child Development (MoWCD), the Nand Ghar initiative targets the empowerment of 8.5 crore children and 2 crore women across 13.7 lakh Anganwadis in India. 2019 was a milestone year for this initiative, as we witnessed the inauguration of our 1,000th Nand Ghar. By FY2021, we are planning to quadruple the number of these centres, with an unwavering commitment to giving back to the society.

A FIRM FOCUS ON SUSTAINABILITY

Our sustainability approach is strongly driven by the need to address the expectations of our stakeholders while delivering strong business performance. As a Company we are attuned to global expectations and endeavour to contribute to the fulﬁlment of the United Nations Sustainable Development Goals (UN SDGs).

Our sustainable development agenda straddles four major pillars of Responsible Stewardship, Building Strong Relationships, Adding and Sharing Value, and Strategic Communications. These are developed in line with our core values, internal and external sustainability imperatives and global relevant frameworks. Our Environmental, Social and Governance (ESG) priorities are well aligned to our enterprise goals and towards this end,we are working with a target-based approach to foster an inclusive and sustainable future for all. We ensure the safety of our workforce with its associated programmes on Visible Felt Leadership, deeper engagement on safety with our business partners, and managing critical safety tasks.

We are also managing our environmental impact through associated programmes on GHG emissions intensity reduction, tailings dam management, and recycling of our high-volume-low-eﬀect wastes such as ﬂy ash. We have deﬁned a social performance framework for the organisation to secure our social licence to operate assessing the maturity of our business in the context, and driving community development activities across multiple spheres such as child education, women's empowerment, medical infrastructure development, and sports, among others.

EMPLOYEE SAFETY, HEALTH AND WELLBEING

The safety, health and wellbeing of our employees continue to be a highly critical focus area for us. However,

I regret to inform that even with a razor-sharp focus on occupational health and safety, we witnessed seven fatalities this year. One life lost is too many for us, and we have redoubled our eﬀorts to eﬀectively enforce a safety culture and avoid any untoward incident, going forward.

TOGETHER WE WIN

Ever since we began our journey, our culture has always been people-centric, because we believe we are only as resourceful, resilient and future ready as our people. We are committed to provide our people a safer, sustainable, inspiring and inclusive culture.

Our culture enshrines our core values and nurtures innovation, creativity and diversity. We align our business goals with individual goals and enable our employees to grow on the personal as well as the professional front. Being an equal opportunity employer, and a meritocracy - all our decisions regarding employees are based on their contribution, attitude and potential.

CHANGES IN LEADERSHIP

With a heavy heart, I would like to announce that Srinivasan Venkatakrishnan (Venkat) stepped down as the CEO and Director of the Company with eﬀect from 5

April 2020, for personal reasons and will be re-joining his family in South Africa. Over the last two years, I have enjoyed working with Venkat to drive our vision for the Company and the country at large.

I admire Venkat for his passion, dedication, ability to connect with people and his grasp of business. Venkat is a committed leader and will be remembered for his passion for sustainability, asset integrity, development and positioning Vedanta in global markets. We would like to acknowledge and express our deep appreciation and gratitude to Venkat for his immense contribution to the Company. This year, we also had to bid adieu to Ajay Kumar Dixit, our Cairn Oil & Gas business CEO and Deshnee Naidoo, our Zinc International business CEO. Ajay superannuated from the Company at the end of his ﬁve-year term this May, while Deshnee had to leave us for personal reasons. Both led respective businesses with great zeal and passion.

We wish them the best for all their upcoming endeavours. It is my pleasure to welcome Sunil Duggal - our interim CEO, a mature and proven leader who has held key leadership positions across the Group in the last 10 years. Sunil is an industry veteran and an active member of several industry and advocacy forums. He is passionate about safety, environment and ESG. We look forward to Sunil taking the Company to greater heights. I also want to place on record my thanks to the 80,000+

Currently, 3.1 million people beneﬁt from Vedanta's us$ 41 million CsR programme. 2019 was a milestone year for our ﬂagship nand ghar initiative, as we witnessed the inauguration of our 1,302nd nand ghar at Barmer, Cairn Oil & Gas.

people who make up the Vedanta family and who, during this year, have innovated, broken records, and driven up our output with ever-increasing eﬃciency.

WAY FORWARD

I sincerely believe that the post-COVID world will bring huge opportunities for India to secure a better place in the emerging global economic order. I also believe the ultimate 'Make in India' moment for our country is soon to arrive. With ample natural, human and technological resources and strong reform-focused democratic governance, India holds out hope in the post-COVID era global businesses and investors look at reducing dependency on China. This will mean more jobs, more investments, rapid development and a great boost to our 'Make in India' initiative.

As I look back at Vedanta's journey so far, I can say with reasonable conﬁdence that we have steadily grown and evolved to be an organisation creating disproportionate value for citizens of India. Even amidst a short-term environment of uncertainty, I have well-founded belief in our fundamentals, our strategy and our people, which taken together, is a powerful force to reckon with. My outlook remains positive for the country and for the Company and we are equipped to fulﬁl every commitment we have towards our stakeholders.

On behalf of the Board and the entire leadership team, I solicit your continued cooperation for all our present and future endeavours.

Best regards, Anil Agarwal

CEO'S MESSAGE

PURSUING

SUSTAINABLE GROWTH TO EMERGE STRONGER

The COVID pandemic has hit the world and us in the last quarter of the year. We have taken a pro-active approach to keep our assets and people safe while ensuring optimum operations during these diﬃcult times. During these diﬃcult times, our eﬀorts are aligned to the singular vision of making our communities, the state and nation self-reliant and selfsuﬃcient.

Sunil Duggal

Chief Executive oﬃcer

Dear Stakeholders,

This is my ﬁrst integrated report since assuming the role as Interim Group CEO of Vedanta Limited and I am honoured and humbled to be leading our great Company which I have proudly been a part of for last ten years. I must begin by acknowledging Mr. Srinivasan Venkatakrishnan for his leadership in our Company over the last two years. Under his guidance, we built an exceptionally strong foundation that will beneﬁt our organization long after his departure. We are grateful for his service.

Vedanta has a rich legacy as India's only diversiﬁed natural resources group. We will continue to further strengthen it in the years to come. It is a Company with a strong purpose of giving back for the greater good, a track record of achievement with an equally compelling sense of selﬂessness. We strive for a positive impact on the communities we operate in. The Company has been contributing signiﬁcantly to India's growth story. We are among the top private sector contributors to the exchequer with the contribution of ₹32,400 Crore in FY2020. Vedanta's operations contribute 1 per cent to India's GDP as per the IFC report. Operating responsibly and ethically is an integral part of Vedanta's core values. We deliver on our commitments to all internal and external stakeholders by demonstrating these values through our people, actions, processes and systems.

The Company is uniquely poised to grow in commodities that have rising demand especially in India, with an enviable growth pipeline which is being brought to fruition in a disciplined manner. At the core of this growth are long life, structurally low cost and diverse assets with excellent potential, as we are market leaders in most of the commodities we produce. The Company has the ﬁnest resources that the world and country have to oﬀer - in the form of some of the world-class deposits on one hand and importantly people with entrepreneurship, capability, drive, energy and commitment to get the most out of these deposits, on the other. There is a strong technical expertise in the group with a keenfocus on exploration. This is also evident by the fact that Vedanta is one of the largest employers of engineers and geologists in India. Our operating mantra remains - safety, environment, volume growth and lowest cost of production.

THE YEAR GONE BY

the Gamsberg production for the year stood at 108 kt

ƒ Oil & Gas average gross production was at 174 kboepd
To describe 2020 as a dynamic year is an understatement. The macro environment has been extremely challenging with the impact of the COVID-19 pandemic. The virus outbreak which saw lockout across geographies has become one of the biggest threats to the global economy, disrupting businesses and supply chains world over. During these testing times our priority was to ensure the health and safety of our employees, contractors and stakeholders, while ensuring the business continuity to all extents possible. The full impact of this pandemic has to be further accessed in the longer term. The Company has set up a dedicated ₹100 crore fund as part of its endeavour to join ranks with the Government of India to combat the widespread outbreak of COVID-19 which will cater to three speciﬁc areas - Livelihood of the daily wage worker, employees & contract workers, preventive healthcare and will provide timely help to communities in and around various plant locations of the Company.
Upon evaluating the year, I would like to draw your attention to the following key operational highlights, which I'm particularly proud of:
ƒ Our Aluminium business continues to beneﬁt from improved integration, currently witnessing cost of US$1,690/t even after the macro environment impact.
Lanjigarh reﬁnery recorded the highest-ever production volumes from our Alumina reﬁnery in Lanjigarh at 1,811 kt, up 21% y-o-y at a cost of US$275/t, down 15%
ƒ In our Zinc business, we remain on track to become the world's largest integrated zinc-lead-silver producer in two years while maintaining our cost leadership with record ore production of ~15 million tonnes in Zinc India, despite disruptions on account of COVID-19. At Zinc International,
ƒ Our steel business at ESL saw record annual steel production at 1.23 million tonnes for FY2020, up 3% y-o-y at an industry-leading margin of ~US$127/t during the last quarter
ƒ In Iron Ore, our sales from Karnataka were up 125% y-o-y at 5.8 million tonnes
ƒ Our balance sheet continues to be strong, and with a healthy cash- ﬂow generation, we maintain our industry-leading Net Debt-to-EBITDA ratio of 1.00, which is lowest among Indian peers
ƒ Nand Ghar, our ﬂagship CSR initiative, has crossed the 1,000 Anganwadi mark and is currently standing at a count of 1,250
ƒ Continuous improvements as per Golder recommendations are under implementation across all tailing dams

Operating responsibly and ethically is an integral part of Vedanta's core values. We deliver on our commitments to all internal and external stakeholders by demonstrating these values through our people, actions, processes and systems.

Aluminium Smelter at Balco

We are conﬁdent that these measures will help stabilise our safety performance in the short term and help us move closer towards our objective of Zero Harm and Zero Fatality. As discussed above, the last quarter of FY2020 has been a time of global crisis as a result of

CEO'S MESSAGE CONTINUED...

OUR SAFETY RECORD ƒ We began this ﬁnancial year with a strong commitment to improve our safety performance. While there have been signiﬁcant gains made across our businesses, I am deeply saddened by the loss of seven lives this year. Our LTIFR stands at 0.67 in FY2020.

We have completed the incident investigations for the accidents and are taking measures to ensure repeats do not occur. The learnings from the incidents are being implemented across the business. Occupational health and safety is a non-negotiable factor for us and we are determined to achieve absolute 'Zero Harm' in our operations.

In light of our safety incidents, there is a renewed focus by the leadership team to improve our safety performance. Three safety KPIs were taken to help us improve our journey to Zero Harm. We are making steady progress in all three areas.

ƒ In the area of Visible Felt Leadership

Where leaders & support personnel are mandated to spend quality time in the ﬁeld performing safety interactions

ƒ In the area of Managing Safety Critical Tasks

That could cause a fatal or a permanent injury like Fall of Ground, Working at Heights, Conﬁned Spaces etc

In the area of Business Partner engagement

We have established a committee that has the mandate to help improve the Business Partner safety performance. The committee is currently completing work on pre- qualiﬁcation requirements, and on special terms and conditions that highlight Vedanta's safety expectations for Business Partners, especially those that do heavy maintenance and construction activities at our facilities

the COVID-19 spread. We are fully committed to the safety of our employees.

Our strategy has been threefold: practice physical distancing for all essential workstreams, rely on early diagnosis for our workforce to prevent an outbreak and share knowledge and best practices across our business entities to ensure safe workplaces.

While the average footfall at our plants has been reduced signiﬁcantly, our employees are actively involved in building homegrown solutions to the challenges created by COVID-19. For example, we now have non-touch based hand washing system which was built by our employees. Additional safety measures in terms of sanitiser fogging, social distancing measures through on ground marking are also in place to ensure minimum contact. We have also launched an healthcare helpline for our employees in partnership with Apollo Hospitals, through which they can tele-consult with a general physician or a psychologist.

SUSTAINABILITY, A BUSINESS AND SOCIAL IMPERATIVE

Our unwavering focus on operating a sustainable and responsible business continued to deliver results in FY2020 which was well aﬃrmed by third- party experts. Work on improving the stability and the management of our tailings dam facilities continues. Business Units are implementing the recommendations from the audit conducted by Golder Associates in the previous year. In addition, wehave updated the Tailings Dam Performance Standard and have added a detailed set of Guidance Notes that all our BUs must adhere to when managing their tailings facilities. With a view to de-risk our tailings dam facilities, we have embarked on a programme to de-water our tailings and store the dry tailings moving forward. Our Lanjigarh red mud pond has led the way early on this and HZL's Zawar location has commenced operations with this approach during the year. We are exploring to adapt this to our Dariba and Rampura Agucha locations.

2020 marks the end-of-cycle for our GHG emissions intensity reduction target. We have managed to reduce our GHG emissions intensity by 13.83%. This reduction in equivalent to ~9 million tons in avoided GHG emissions.

BUSINESS REVIEW AND OUTLOOK Zinc

We are on track to become the world's largest long-life, low-cost zinc-lead-silver producer in the coming two years. This is being made possible with both our Zinc India operations through HZL and our Zinc International business. At HZL, where we have fully integrated operations with matching mining and smelting capacities, we are witnessing solid output, across both zinc and silver while maintaining our cost leadership. The ramp-up of our mines is in its ﬁnal phases and will signiﬁcantly de-risk our future growth potential for the next few years. HZL is

2020 also is the end-of-cycle for our GHG emissions intensity reduction target. We have managed to reduce our GHG emissions intensity by 13.83%. This is slightly below our targeted 16% reduction from a 2012 baseline and indicative of the stretch target we had taken. This reduction in equivalent to ~9 million tonnes in avoided GHG emissions. We have begun work on setting our next set of long-term GHG reduction targets and will be disclosing those numbers in the next ﬁscal cycle.

Read a detailed account of our ESG strategy, initiatives and performance on Page 64-111.

currently targeting an expansion of up to 1.35 MTPA and then further to 1.5 MTPA.With respect to Zinc International, the Gamsberg plant, inaugurated in 2019, is beginning to stabilize and ramp up. An expanded Gamsberg will see ore mined increase to 8 MTPA, with zinc-in-concentrate rising to 600,000 tpa. This will make Gamsberg the largest open-cast mine in South Africa, and its ﬁrst fully integrated zinc manufacturing facility.

Read more on Zinc India and Zinc International on Page 132-141.

Oil & Gas

In Oil & Gas, we are monetising our existing portfolio and driving growth to the next level. We currently have 136 drilled and 41 hooked up wells. The gas production facility has also been ramped up to a design capacity of 90 mmscfd. We had a planned shut down at the Mangala processing terminal in February and have been ramping up our production since then.

Our current portfolio for exploration consists of 33 oﬀshore and 8 onshore Open Acreage Licensing Policy (OALP) blocks, with a combined acreage of ~65,000 sq km. The full potential production expectation from this portfolio is 500 kboepd and we have committed a capex of US$800 million for the exploration phase, with 192 exploratory wells to be drilled. For Production Sharing Contract (PSC) blocks, we have a committed investment of US$135 million (Rajasthan Tight Oil Appraisal and KG- Oﬀshore). For Rajasthan exploration, we have released an EOI for an integrated exploration and appraisal work programme.

Read more on Copper on Page 164-167.

RESOURCES AND RESERVES

As a natural resources Company, our available reserves deﬁne our value proposition and market success. As introduced at the start of this report, in our Zinc, Iron Ore and Bauxite reserves, we fall in the top decile globally for largest reserves. Further,

in our Oil & Gas business, we are the largest private sector acreage holder in India.

Refer to the detailed table on Page 09.

DIVIDENDS

During the year, the Board declared dividends aggregating ~₹1,500 crore crore at ₹3.9 per equity share.

PEOPLE

During my time within the Vedanta Group, I've been fortunate to interact with a lot of our people, who have the talent and the passion to make a diﬀerence. It is them who give me the conviction that we are going to continue our winning streak, without losing focus on our core values and the larger purpose. Our ~80,000-strong workforce leads the way forward for us, and I thank them for all their eﬀorts.

Read more on our people practices on Page 98-103.

OUTLOOK

As I look ahead, I can say with conﬁdence that we are positioned to grow in our key markets and service the needs of the people. Notwithstanding the current uncertainties around COVID-19 and the ensuing impacts, we will continue to invest forward and deliver superior returns to our stakeholders.

Over the next three to ﬁve years we plan to invest ~US$9 billion across our businesses, and are expecting to grow our revenues by 30% to 40%. Once the industrial and economic scenario has found a new normal, our enviable project pipeline across all our key businesses will beneﬁt from strong signals of resumption of the accelerated growth in India, owing to pro-growth and pro-business government policy decisions. I thank the Board and the Chairman, our people and partners, and all other stakeholders for the support you have extended to help me execute my role well. Going forward, we will continue to raise the bar with everyone and deliver results as we always have.

I seek your continued guidance and support in achieving the same.

Best regards,

Sunil Duggal

Chief Executive Oﬃcer

The Aluminium & Power Sector and General Electric (GE) signed an agreement to implement GE's Digital Smelter solutions at its largest smelter in India at Jharsuguda to signiﬁcantly increase its operational eﬃciency and productivity. A ﬁrst-of-its-kind deployment in any aluminium plant in India, the digital twin technology is part of Vedanta's long-term commitment to digital

Lanjigarh is a small town located in the eastern part of India in Odisha. Situated here is our state-of-the-art alumina reﬁnery, led by a diverse team of global and local talent. It forms a crucial link in our value chain, as it feeds our aluminium smelters at Jharsuguda and BALCO.

In the past two years, the reﬁnery has had an exemplary run, with alumina production volumes growing at 22% CAGR, while the cost of production has declined by 8%

CAGR to sub-300 $/T levels. The reﬁnery delivered its highest-ever production of 1.8 million tonnes of alumina in FY2020, 21% higher than FY2019.

Since its inception, the reﬁnery has been fed by several bauxite sources globally. As a result, achieving consistent plant productivity was challenging. To mitigate this long-standing challenge, a comprehensive operational excellence programme was run at the reﬁnery from quarry to lorry (from bauxite sources to alumina dispatch), supported by an aggressive war-room approach that examined each step in the process for revamping and optimising.

INTRODUCING LINEARITY OF PERFORMANCE

As a result of the operational excellence initiative, the multitude of bauxite sources were cut down to three to four sustainable sources, chosen based on geological similarities.

This directly enhanced plant productivity and improved alumina recovery. A second challenge was the prevalence of high atmospheric moisture levels aggravated by Indian monsoons. This adversely aﬀected the bauxite quality and impacted our production levels.

To contain this risk, we undertook extensive sampling across the supply chain to identify points of moisture ingress and went on to mitigate the issue. This risk identiﬁcation and mitigation model was replicated throughout the plant, helping us improve and evolve our operating processes.

INTEGRATED PLANNING ACROSS PROCESSES AND STAKEHOLDERS

Committed to continuous improvement, we conducted a production loss mapping exercise across various stages of the reﬁnery, along with a relentless focus on plant maintenance. With the introduction of robust production planning across sourcing, logistics, handling, operations & maintenance, equipment availability and turnaround time improved dramatically. Detailed logistics planning and ensuing debottlenecking projects helped enable the production teams to operate with higher versatility across parameters.

hEAlTh, sAFETy AnD EnVIRonmEnT (hsE)

Best-in-class HSE performance has always been at the core of the process execution at Lanjigarh. To reaﬃrm this, several concerted and award-winning eﬀorts were undertaken at the unit to further enhance the overall sustainability of our operations.

The reﬁnery delivered its highest-ever production of 1.8 million tonnes of alumina in FY2019-20, 21% higher than FY2018-19.

Mine Cutting Machine at our plant site

LEVERAGING TECHNOLOGY TO DRIVE EFFICIENCY

transformation. Together with advanced analytics, this technology is expected to substantially reduce speciﬁc power consumption at the smelter. Typically, a one-percent reduction in speciﬁc power consumption eﬀected by digital smelter solutions can save about US$4-5 million annually in the smelter potlines alone, for every one million tonne of aluminium producedannually. In addition, this digital solution is expected to improve raw material utilisation, increase smelter pot life, enhance operational eﬃciency, maximise safety and reduce wastage, thereby delivering best-in-class performance outcomes and signiﬁcant cost savings.

HINDUSTAN ZINC:

DRIVING DIGITAL DISRUPTION IN THE MINING SECTOR

HZL remains at the forefront of transformation in the mining sector, implementing best-in-class technological solutions to strengthen its competitive edge. Its journey towards digitalisation and technological excellence has led to the emergence of several consequent opportunities in 2020 and beyond.

This year, HZL launched a collaboration centre, which can be easily termed as one of the world's best Internet of things (IoT) setups in the mining industry. This Centre has infused data-driven decision-making across our operations. For us, this step goes a long way in nurturing an ecosystem where our operations team, Original Equipment Manufacturers (OEMs), Subject Matter

DATA IS THE NEW GOLD, AND IN MINING IT IS A PRIORITY

Experts (SMEs), data scientists and senior management collaborate seamlessly towards meaningful outcomes. Relevant data from our mines, mills, smelters and power plants are integrated into a single platform, providing a holistic view and strengthening the foundation for a digital enterprise, while oﬀering several other possibilities.

The Centre is working on advanced analytical modelling to allow accurate predictions to prevent major equipment failures and production losses, thereby optimising our assets and operations. This strategy will lead to an increase in metal recovery by ~2%, while cost optimisation in our underground operations and in the smelting process is already visible.

e-Volve: a ﬁrst-inthe-Zinc industry B2B online commerce platform. It enables customers to place orders in just 3-clicks on real time INR prices with minimum order quantity of as low as one tonne and oﬀers delivery from our extensive network of warehouses.

DRIshTI - An EyE FoR DETAIl, EVEn A mIlE unDERgRounD

HZL launched a project called 'Drishti' to make the underground mining process more predictable, reliable and sustainable with maximum safety using state-of-the-art technology. Under 'Drishti', we target to improve the overall underground equipment eﬀectiveness by over 10% this year. To achieve this, we established a high bandwidth Wi-Fi network to facilitate two-way communication with underground equipment and personnel. This enables us to track man, machine and material movement, examineprogress of tasks on real-time basis and manage data centrally. In essence, it helps us provide the right information at the right time, in the right format to the right person.

Under 'Drishti', we are now vested with a unique ability to monitor and predict the health of equipment, which operate as deep as a kilometre below ground. This helps us shift from the current practice of preventive to condition-based predictive maintenance. Additionally, this will also empower us with a

Underground operations at Sindesar Khurd Mine

unique functionality of traﬃc management on ramp, which has the potential to signiﬁcantly reduce the idling time and ensure better safety.

EVOLVING METAL SALES CHANNEL AT HZL

During FY2020, HZL's marketing team completed the Phase

I development milestone for e-Volve, a ﬁrst-in-the-Zinc industry, B2B online commerce platform. e-Volve is set to go-live in Q1FY21 and will transform the way metals are purchased in India - and enable 'Buy in three clicks'.

e-Volve aims to be the digital marketplace of choice for zinc, lead and silver consumers within the country. It enables them to place orders in just three-clicks on real-time, INR prices with minimum order quantity of as low as one tonne and oﬀers delivery from our extensive network of warehouses.

This digital marketplace is expected to enable HZL reach out to over 2,000 customers of zinc, lead and silver and will reduce transaction and inventory costs for the industry.

Satellite-based Sub-Terrain prospecting

In the PSC blocks, we are investing a gross capex of US$3.2 billion across the portfolio of projects, comprising enhanced oil recovery, tight oil, tight gas, infrastructure upgrade, exploration and appraisal. Execution of these projects through an integrated partnership model with global oil ﬁeld service companies is underway. These projects shall contribute to the near-term growth in volumes.

Furthermore acquisition of 51 OALP blocks across basins in India has led to a tenfold jump in our acreage from the existing/producing blocks of ~6,000 sq km. in August 2018 to current levels of ~65,000 sq km. This has established us as one of the largest private sector acreage holders in the country. The blocks are contiguous to some of the highest oil-producing ﬁelds in Barmer, Assam, and the Krishna Godavari (KG) basin. They also possess a good mix of unconventional and conventional play, along with existing infrastructure and data capabilities to jumpstart activities on an immediate basis. The acquired blocks have a work programme commitment of ~10,620 km of 2D seismic, ~22,882 sq km of 3D seismic and over 192 exploratory wells.

(sTep®) applied in the olAp blocks is the ﬁrst application in oil & gas exploration in India to provide information to optimise & prioritise areas for exploration focus.

OALP BLOCKS

In OALP blocks, our objective is to reduce cycle time from exploration to production through innovative technology adaption. We have implemented an innovative technology, Full Tensor Gravity Gradiometry™ (FTG) airborne survey, to prioritise area for hydrocarbon prospectivity. This is the largest onshore FTG survey programme in India covering an area of 1,200 LKM in Assam blocks and 8,000 LKM in Kutch blocks.

The seismic acquisition programme has commenced in Assam, Kutch and mobilisation of the crew is underway in Rajasthan, Cambay and Oﬀshore blocks. We have applied satellite-based Sub-Terrain Prospecting (STeP®), which includes eight remote sensing and computational technologies within a six-month time frame covering an area of 3,650 sq km. This is the ﬁrst application in oil & gas exploration in India to provide information to optimise and prioritise areas for exploration focus. Adaption of technology will enable us to commence exploratory drilling in the early part of FY2021 and drive early monetisation. Together, our approach towards PSC and OALP blocks will enable us to progress towards our vision for oil & gas, and in turn, contribute to India's hydrocarbon security.

Largest onshore FTG survey program in India covering an area of 1200 LKM in Assam blocks and 8000 LKM in Kutch blocks.

OFFSHORE DIGITAL OILFIELD OF THE FUTURE

As a part of digital journey, Cambay Basin Oﬀshore at Suvali (CB/ OS-2) is now integrated with corporate Historian i.e. replicating the performance of the oilﬁeld on a computer. The implementation of digital oilﬁeld has assisted Oil & Gas business in increasing

operational eﬃciency, production optimisation, collaboration, data integration, decision support, and workﬂow automation. Additionally, it enabled us in achieving productivity gains through improved reservoir understanding and remote monitoring of drilling and completion operations.

We aim to forge strong partnerships by engaging with our key stakeholders, including shareholders and lenders, suppliers and contractors, employees, governments, communities and civil societies. These relationships help maintain and strengthen our licence to operate.

FINANCIAL CAPITAL

We are focused on optimising capital allocation and maintaining a strong balance sheet while generating strong free cash ﬂows. We also review all investments, taking into account the Group's ﬁnancial resources with a view to maximising returns to shareholders.

MANUFACTURED CAPITAL

We invest in best-in-class equipment and machinery to ensure we operate as eﬃciently and safely as possible, both at our current operations and in our expansion projects. This also supports our strong and sustainable cash ﬂow generation.

INTELLECTUAL CAPITAL

As a relatively young Company, we are keen to embrace technological developments and encourage innovation. We encourage our people to nurture and implement innovative ideas, which will lead to operational improvements across our operations.

HUMAN CAPITAL

We have employees drawn from across the world, and their diverse skills and experience contribute to our operations.

The mining and plant operations require specialised skills for which we employ qualiﬁed technical, engineering and geology experts. In addition, we create a culture which nurtures safety, innovation, creativity and diversity, which helps us to meet our business goals while also enabling our employees to grow personally and professionally.

SOCIAL & RELATIONSHIP CAPITAL

NATURAL CAPITAL

India and Africa have favourable geology and mineral potential. These regions provide us with world-class mining assets and extensive R&R. Additionally, operating our mines requires a range of resources including water and energy which we aim to use prudently and sustainably.

CREATIng VAluE FoR ouR sTAkEholDERs:

Shareholders	Employees	Governments
A return on investment	A safe and inclusive working	Generating economic value
environment	for the society and delivering
sustainable growth
Communities	Suppliers, customers and
Investment in health, education	service providers
and local businesses	Building long-term partnerships

INPUTS

FINANCIAL CAPITAL

Equity ₹ 372 croreGross debt ₹ 59,187 crore

Cash and cash equivalents ₹ 37,914 crore

Capex ₹ 6,385 crore

Employees including contractors 79,378

Geologists including contractors 386

Number of hours of training ~548,952

Safety training hours 1.55 million

Technology updates

O&G

Zinc International

ƒ World's largest Enhanced

Oil Recovery (EOR) polymer ﬂood project in Mangala ﬁeld

ƒ New-age technology of

ƒ Smart Ore is a digital concept providing end-to-end solutions for mine performance and mine condition

High Density Multi Stage Fracturing in horizontal transverse wells - ﬁrst in India

SOCIAL & RELATIONSHIP CAPITAL

Community investment `296 crore

Rated by two domestic rating agencies

CRISIL and India Ratings

Net worth	Retained earnings
₹ 71,748 crore	`54,263 crore
Plant and equipment (in value terms)	Capital Work in Progress (CWIP)
₹ 107,489 crore	₹ 16,837 crore
HUMAN AND INTELLECTUAL CAPITAL
HSE employees
including contractors
1,709
Best-in-class corporate	Highest quality
governance practices	safety practices
Zinc India	Aluminium
ƒ Autonomous machines	ƒ Parameters deﬁned
for 24x7 mining at SK	for Category A pots
mine and remote	based on power
controlled LHD	consumption,
(Load, Haul, Dump)	Fe content
for ore hauling
Strong network of global and	Independent
domestic relationship banks	Directors
25	5
R&R - Zinc International

MANUFACTURED CAPITALNATURAL CAPITAL R&R - Zinc India

403 million tonnes, containing 31.8 million tonnes	509.4 million tonnes, containing
of zinc-lead metal and 898 million ounces of silver	26.6 million tonnes of metal
R&R - O&G	Energy consumption
1,194 mmboe gross proved and probable	531 million GJ
reserves and resources
Coal used
Water consumed	25 million tonnes
255 million m3

ACTIVITIES

We operate across the mining value chain focusing on long-term and low-cost assets in India and Africa

EXPLORE

We invest selectively in exploration and appraisal to extend mine and reservoir life.

DEVELOP

We develop world-class assets, using the latest technology to optimise productivity.

EXTRACT

We operate low-cost mines and oil ﬁelds, with a clear focus on safety and eﬃciency.

PROCESS

We focus on operational excellence and high asset utilisation to deliver top quartile cost performance and strong cash ﬂow.

MARKET

We supply our commodities to customers in a wide range of industry sectors, from automotive to construction, from energy to consumer goods.

RESTORE

We manage our long-life assets as eﬀectively as possible and return them to a natural state at the end of their useful life.

OUTCOMES

FINANCIAL CAPITAL

Turnover ₹ 83,545 crore

EBITDA ₹ 21,061 crore

Total exchequer contribution ₹ 32,400 crore

Attributable PAT (before exceptional items): ₹ 3,995 crore

Earnings per share (EPS)

(before exceptional items):

₹ 10.79 /share

Dividends paid ₹ 3.9 per share

FCF post-capex ₹ 7,130 crore

RoCE ~11%

Net Debt to EBITDA 1.0x

MANUFACTURING CAPITAL Production across various businesses Zinc India: Oil & Gas:

Zinc: ~1.2 mtpa Silver: 610 tonnes

Gross volume: 174 kboepd Aluminium:

Power 11.2 billion kWh

Zinc International: Scorpion and BMM: > 133 kt

Alumina: 1.8 mtpa Aluminium: 1.9 mtpa

Pig Iron 681 kt

Steel

Gamsberg: 108 kt

Copper: 77 kt

1.2 MnT

HUMAN AND INTELLECTUAL CAPITAL

Lost Time Injury Frequency Rate (LTIFR) 0.67

Attrition rate 7.4%Diversity ratio 10.9%

SOCIAL & RELATIONSHIP CAPITAL

CSR Programme Beneﬁciaries C.3.26 million

Operational Nand Ghars 1,302

Interim dividends paid `1,450 crore

Contribution to the exchequer ₹ 32,400 crore

Youth beneﬁted from Employment based skills training 3,600+

Nand Ghars built 1,302

NATURAL CAPITAL

Water recycled 29%

Water savings 2.99 million m3

High Volume, Low Eﬀect Waste

Recycled: 88%

Fly ash utilisation rate 105.6%

GHG emitted 59 Mn tCO2e

Refer to Page 80

An evening at Cairn Oil & Gas, Barmer

STRATEGIC PRIORITYDESCRIPTION

COMMITMENT TO THE LARGER PURPOSE WITH FOCUS ON woRlD-ClAss Esg PERFORMANCE

We operate as a responsible business, focusing on achieving 'zero harm, zero discharge and zero wastage', and thus minimising our environmental impact. We promote social inclusion across our operations to promote inclusive growth. We establish management systems and processes in place to ensure our operations create sustainable value for all our stakeholders.

KPIs

RISKS

ƒ LTIFR
- ƒ Health, Safety and Environment (HSE)
ƒ CSR footprint
- ƒ Tailings dam stability
ƒ Carbon Footprint
- ƒ Managing relationship with stakeholders
ƒ Gender diversity

ƒ Regulatory and legal risk

STRATEGIC PRIORITYDESCRIPTION

AUGMENT OUR RESERVES & REsouRCEs (R&R)

We look at ways to expand our R&R base through targeted and disciplined exploration programmes. Our exploration teams aim to discover mineral and oil deposits in a safe and responsible way, to replenish the resources that support our future growth.

BASE

STRATEGIC PRIORITY

DELIVERING ON GROWTH OPPORTUNITIES

We are focused on growing our operations organically by developing brownﬁeld opportunities in our existing portfolio. Our large, well-diversiﬁed, low-cost and long-life asset portfolio oﬀers us attractive expansion opportunities, which are evaluated based on our return criteria for long-term value creation for all stakeholders.

KPIs	RISKS
ƒ Revenue	ƒ Major project delivery
ƒ ROCE	ƒ Cairn related challenges
ƒ FCF post-capex	ƒ Regulatory and legal risk
ƒ Growth capex

KPIs	RISKS
ƒ Total 2P+2C R&R in O&G	ƒ HSE
ƒ Total R&R in Zinc India	ƒ Discovery risk
and Zinc International	ƒ Regulatory and legal risk
DESCRIPTION

FY2020 UPDATE

ƒ Seven fatalities occurred in the ﬁnancial year; consequent commitment to increase oversight from Group Executive Committee (ExCo) to prevent future occurrences
- ƒ c.105% of generated ﬂy ash is being utilised.
- ƒ Baseline surveys conducted across Group, BU plans aligned with ﬁndings/recommendation
- ƒ 1,302 Nand Ghars constructed
ƒ Average Score of 72.5% achieved in ten safety performance standards
- ƒ 'Passion to serve' - employee volunteering online platform launched in August 2019.
ƒ LTIFR reported at 0.67
ƒ Achieved water savings of 2.99 million cubic metres
- ƒ A standard online community grievance record/ redressal software (NIVARAN) established across
(Target: 2.5 million cubic meters)
the group.
ƒ c.13.83% reduction in GHG intensity over baseline of 2012 ƒ
100% new hires trained on Code of Conduct
ƒ Achieved energy saving of 1.92 million GJ
- ƒ 20% female representation on the Comapny FY2020 Board
ƒ Third-party review of tailings/ash dyke management system and development of speciﬁc improvement plan (India operations)

ƒ 8.7% improvement in our campus female hiring programme
ƒ Sustainability Committee constituted
FY2020 UPDATE
Zinc India
- ƒ During the year, gross additions of 14.6 million tonnes were made to R&R, prior to depletion of 14.5 million tonnes
ƒ Combined mineral resources and ore reserves estimated at 509.4 million tonnes, containing 26.6 million tonnes of metal
- ƒ Combined R&R were estimated to be 403 million tonnes, containing 31.8 million tonnes of zinc-lead metal and 898 million ounces of silver
ƒ The R&R support a mine life of more than three decades

ƒ Overall mine life continues to be more than 20 years

Zinc International ƒ During the year, gross additions of 75.4 million tonnes of ore and 4 million tonnes of metal were made to reserves and resources (R&R), after depletion

Oil & Gas ƒ Upside potential of ~5.5 billion boe of resource across a total of 51 blocks with the addition of 10 new blocks in OLAP II & III

FY2020 UPDATE

Oil & Gas

ƒ Early gas production facility fully commissioned with ramped up volumes to ~127 mmscfd
ƒ Won 10 exploratory blocks in OALP II & III
ƒ To deliver the capex project, 235 wells have been drilled and 75 wells hooked up till FY2020

ƒ The addition of 10 blocks catapults us to become one of the largest private acreage holders in India, with a tenfold jump in acreage from its existing/ producing blocks of ~6,000 sq km to ~65,000 sq km across its total 58 blocks

STRATEGIC PRIORITYDESCRIPTION

OPTIMISE CAPITAL ALLOCATION AND MAINTAIN STRONG BALANCE SHEET

Our focus is on generating strong business cash ﬂows and maintaining strict capital discipline in investing in proﬁtable high IRR projects. Our aim is to maintain a strong balance sheet through proactive liability management. We also review all investments (organic and acquisitions) based on our strict capital allocation framework, with a view to maximising returns for shareholders.

KPIs

RISKS

ƒ FCF post-capex
- ƒ Access to capital
ƒ Net Debt/EBITDA (Consol)
ƒ EPS (before exceptional items)
- ƒ Fluctuation in commodity prices (including oil) and currency exchange rates
ƒ Interest cover ratio
- ƒ Regulatory and legal risk
ƒ Dividend

ƒ Tax related matters

STRATEGIC PRIORITY

OPERATIONAL EXCELLENCE

DESCRIPTION

We strive for all-round operational excellence to achieve benchmark performance across our business, by debottlenecking our assets to enhance production, supported by improved digital and technology solutions. Our eﬀorts are focused on enhancing proﬁtability by optimising our cost and improving realisation through the right marketing strategies.

KPIs

ƒ EBITDA
ƒ Adj. EBITDA margin
ƒ FCF post-capex
ƒ ROCE

RISKS

ƒ Fluctuation in commodity prices (including oil) and currency exchange rates
ƒ HSE
ƒ Tailings dam stability
ƒ Loss of assets or proﬁt due to natural calamities

FY2020 UPDATE

ƒ FCF reduced from 11,553 INR crore to 7,130 INR crore, down 38% y-o-y
ƒ Net debt decreased from ₹26,956 crore to ₹21,273 crore
ƒ Net Debt/EBITDA at 1.0x on a consolidated basis.
ƒ Dividend worth c.₹1,450 crore, ₹3.90/share distributed in VEDL

FY2020 UPDATE

Zinc India ƒ Record ore production of 14.5 million tonnes despite disruptions on account of COVID-19 ƒ Mined metal production of 917 kt and reﬁned zinc-lead production of 870 kt

Zinc International

ƒ Cost of production at US$1,665/t, down 13% y-o-y
ƒ Increase in Gamsberg production volume from 17 kt in FY2019 to 108 kt in FY2020
ƒ During FY2020, total production stood at 240 kt, 63% higher y-o-y. This was primarily due to ramp up of ﬁrst phase of Gamsberg expansion plan

Oil & Gas

ƒ Development rigs as on March 2020, with 136 wells drilled and 41 wells hooked up during the year.
ƒ Two new wells hooked up in Ravva block adding ~10 kboepd of incremental volumes
ƒ Gas production for Rajasthan block increased by 122% to 79 mmscfd as early production facility fully commissioned with ramped up volumes to ~127 mmscfd
ƒ Implemented largest Full Tensor Gravity Gradiometry™ (FTG) airborne survey in India covering an area of 1,200 LKM in Assam blocks and 8000 LKM in Kutch blocks.
ƒ Satellite-based Sub-Terrain prospecting (STeP®) applied in Assam, which includes eight remote sensing and computational technologies covering an area of 3,650 sq km
ƒ Seismic acquisition programme commenced in Assam and Kutch; 1,100 sq km in Kutch and 120 sq km, 265 LKM completed in Assam.
ƒ Production Sharing Contracts (PSC) signed for Ravva block extended for 10 years

Aluminium & Power

ƒ India's highest aluminium production at 1,904 kt
ƒ Record alumina production from Lanjigarh reﬁnery at 1,811 kt, up 21% y-o-y, through continued debottlenecking
ƒ Q4FY2020 Lanjigarh cost of production lowest quarterly ever at 258 $/T
ƒ Q4FY2020 hot metal cost of production signiﬁcantly lower at US$ 1,451 per tonne, 20% lower y-o-y
ƒ CoP of alumina improved to US$ 275 per tonne, due to beneﬁts from increase in locally sourced bauxite, continued debottlenecking, improved plant operating parameters and rupee depreciation
ƒ Record PAF of 91% at the 1,980MW TSPL plant in FY2020

Steel ƒ Cost decreased by 9% y-o-y from 457 $/T to 418 $/T in FY2020 ƒ Healthy margin of ~127 $/T during the last quarter Copper and Iron Ore

ƒ Production of saleable ore at Karnataka at 4.4 million tonnes, up 6% y-o-y
ƒ Iron Ore sales at Karnataka at 5.8 million tonnes, up 125% higher y-o-y due to an increase in production and stock liquidation at Karnataka by 1.4 MT.
ƒ Production of pig iron decreased by 1% to 681,000 tonnes in FY2020, mainly due to improved coke availability during the year and other operational eﬃciencies.
ƒ Continued engagement with the government and local communities to restart operations at Goa and Tuticorin

ATTRACTIVE RETURNS

KEY PERFORMANCE INDICATORS

PERFORMING TO DELIVER

GROWTH METRICS

REVENUE (`cr)

EBITDA (`cr)

FCF posT-CApEx (`cr)

11,553

24,900

24,012

92,011

90,901

21,061

7,880

83,545

7,130

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

Description: Revenue represents the value of goods sold and services provided to third parties during the year.

Commentary: FY2020, consolidated revenue was at ₹83,545 crore compared with ₹90,901 crore in FY2019. This was driven by subdued commodity prices, lower volume at Zinc India and Oil & Gas businesses and lower power sales at TSPL, partially oﬀset by higher volume at the Aluminum business, additional volumes from Gamsberg operations, higher sales at Iron Ore Karnataka & Electrosteel and rupee depreciation.

Description: Earnings before interest, tax, depreciation and amortisation (EBITDA) is a factor of volume, prices and cost of production. This measure is calculated by adjusting operating proﬁt for special items and adding depreciation and amortisation.

Description: This represents net cash ﬂow from operations after investing in growth projects. This measure ensures that proﬁt generated by our assets is reﬂected by cash ﬂow, in order to de-lever or maintain future growth and shareholder returns.

Commentary: EBITDA for FY2020 was at ₹21,061 crore, 12% lower y-o-y.

This was mainly on account of subdued commodity prices, lower volume and higher cost at Zinc India and Oil & Gas business partially oﬀset by higher volume at Aluminium business, additional volumes from Gamsberg operations, higher sales at Iron Ore Karnataka and the steel business, easing out of input commodity inﬂation, improved cost of production at Aluminium business, past exploration cost recovery at Oil & Gas business and rupee depreciation.

Commentary: We generated FCF of ₹7,130 crore in FY2020 (FY2019: ₹11,553 crore) driven by lower EBITDA primarily on account of lower commodity prices and working capital blockage due to COVID-19 impact partially oﬀset by continued focus on cost savings, disciplined capex outﬂow and lower tax outﬂow.

RETURN ON CAPITAL EmployED (RoCE) (%)ADJUSTED EBITDA MARGIN (%)

NET DEBT/EBITDA (consolidated)

INTEREST COVER

35%

1.1

10.0

30%

29%

0.9

1.0

7.8

11.2%

5.6

FY 20

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

Description: This is calculated on the basis of operating proﬁt, before special items and net of taxDescription: Calculated as EBITDA margin excluding EBITDA and turnover from custom smelting

outﬂow, as a ratio of average of Copper India and Zinc

The objective is to earn a post-tax return consistently above the weighted average cost of capital. Commentary: ROCE down driven by lower EBIT, partially oﬀset by lower tax outﬂow.

India businesses. Commentary: Adjusted EBITDA margin for FY2020 was 29% (FY2019: 30%).

Description: This ratio represents the level of leverage of the Company. It represents the strength of the balance sheet of Vedanta Limited. Net debt is calculated in the manner as deﬁned in Note 19(d) of the consolidated ﬁnancial statements.

Commentary: Net debt/ EBITDA ratio as on

31 March 2020 was at 1.0x, compared to 1.1x as on

31 March 2019, primarily due to the repayment of debt partially oﬀset by working capital blockage due to COVID-19 and dividend payment during the year.

Description: The ratio is a representation of the ability of the Company to service its debt. It is computed as a ratio of EBITDA divided by gross ﬁnance costs (including capitalised interest) less investment revenue, excluding grant income and other non-operating income. Commentary: The interest cover for the Company was at ~5.6 times, lower y-o-y on account of lower EBITDA and higher net ﬁnance costs due to decrease in interest income partially oﬀset by reduction in ﬁnance cost on account of decrease in average borrowing due to repayment of debt and lower borrowing cost.

0.8

FY 20

Description: It is a ﬁnancial ratio indicating the relative proportion of shareholders' equity and debt used to ﬁnance a Company's assets.

This is calculated as a ratio of total external borrowing to total equity (share capital + reserves + minority). Commentary: The ratio has decreased to 0.8 times in FY2020 primarily because of decrease in gross debt due to the repayment of debt at Vedanta Standalone, TSPL and temporary borrowing at Zinc India partially oﬀset by increase in borrowing at Oil & Gas business.

OPERATING PROFIT MARGIN

20%

17%

FY 18

14%

NET PROFIT MARGIN

12%

10%

FY 19

FY 20

FY 18

FY 19

FY 20

Description: Operating proﬁt Description: It is a measure

margin is a proﬁtability or performance ratio used to calculate the percentage of proﬁt a Company produces from its operations. This is calculated as a ratio of operating proﬁt (EBITDA less depreciation) to revenue from operations.

Commentary: The operating proﬁt margin was lower by 3% in FY2020 as compared to FY2019, primarily due to lower EBITDA on account of subdued commodity prices and increase in depreciation in the current year.

of the proﬁtability of the Company. This is calculated as a ratio of net proﬁt (before exceptional items) to revenue from operations.

Commentary: The net proﬁt margin was lower in FY2020 as compared to FY2019 primarily due to lower EBITDA, higher net interest

RETURN ON NET woRTh (Ronw)

15%

12%

FY 18

FY 19

FY 20

Description: It is a measure of the proﬁtability of the Company. This is calculated as a ratio of net proﬁt (before exceptional items) to average net worth (share capital + reserves + minority).

Commentary: The return on net worth has decreased during the year.

and increase in depreciation This was mainly on account

expense during the year partially oﬀset by lower tax outﬂow during the year

of lower EBITDA, higher net interest and increase in depreciation expense during the year partially oﬀset by lower tax outﬂow during the year.

KEY PERFORMANCE INDICATORS CONTINUED...

LONG‰TERM VALUE

GROWTH CAPEX (`cr)

EPS (before exceptional items and DDT) (`)

DIVIDEND (` per Share)

7,764

21.96

21.20

6,385

18.85

5,469

18.50

10.79

3.90

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

Description: This represents the amount invested in our organic growth programme during the year.

Commentary: Our stated strategy is of disciplined capital allocation on high-return, low-risk projects. Expansion capital expenditure during the year stood at ₹6,385 crore, with the majority invested in projects at Zinc India, growth projects at Oil & Gas and ramping up our aluminium capacities.

Description: This represents the net proﬁt attributable to equity shareholders and is stated before exceptional items (net of tax and minority interest impacts).

Description: Dividend per share is the total of the ﬁnal dividend recommended by the Board in relation to the year, and the interim dividend paid out during the year.

Commentary: In FY2020, EPS before exceptional items was at ₹10.79 per share. This was mainly on account of lower attributable PAT.

Commentary: The Board has recommended a total interim dividend of ₹3.90 per share this year compared with ₹18.85 per share in the previous year.

REsERVEs AnD REsouRCEs (R&R)

Zinc India (million mt)

Zinc International (million mt)

Oil & Gas (mmboe)

509

FY 20

Description: Reserves and resources are based on speciﬁed guidelines for each commodity and region. Commentary:

Zinc India:

Zinc International:

oil & gas:

During the year, gross additions of 14.6 million tonnes were made to R&R prior to depletion of 14.5 million tonnes. At current mining rates, the R&R underpins metal production for more than 20 year.

During the year, gross additions of 75.40 million tonnes were made to R&R after depletion. The R&R support a mine life of more than 30 years.

During FY2020, the gross proven and probable R&R were depleted by 1 mmboe primarily due to production during the year.

411	403	403	434	1,263	1,195	1,194
304
FY 18	FY 19	FY 20	FY 18	FY 19	FY 18	FY 19	FY 20

SUSTAINABLE DEVELOPMENT

GENDER DIVERSITY (%)

CSR FOOTPRINT (million beneﬁciaries)

10.9%

10.6%

10.5%

3.4

3.26

3.0

FY 18

FY 19

FY 20

FY 18

FY 19

FY 20

Description: The lost time injury frequency rate (LTIFR) is the number of lost-time injuries per million man-hours worked. This includes our employees and contractors working in our operations and projects.

Description: The percentage of women in the total permanent workforce.

Commentary: This year the LTIFR was 0.67. The increase is due to improved reporting of LTIs across the organisation. Safety remains the key focus across businesses.

Commentary: : We provide equal opportunities to men and women. During the year, the proportion of female employees was 10.9% of total employees.

Description: The total number of beneﬁciaries through our community development programmes across all our operations.

Commentary: We beneﬁted c.3.26 million people this year through our community development projects comprising community health, nutrition, education, water and sanitation, sustainable livelihood, women empowerment and bio-investment.

RISKS

BUSINESS

We proactively work to minimise our risks by accepting and eliminating them while identifying and taking advantage of opportunities. Our strategic priorities and strong opportunity management culture give us a competitive edge in spotting opportunities and making the best of them.

ENTERPRISE RISK MANAGEMENT

As a global natural resources company, our businesses are exposed to a variety of risks. It is therefore essential to have in place the necessary systems and a robust governance framework to manage risk, while balancing the risk-reward equation expected by stakeholders.

RISK GOVERNANCE FRAMEWORK

Our risk management framework is designed to be simple and consistent and provide clarity on managing and reporting risks to our Board. Together, our management systems, organisational structures, processes, standards and code of conduct and ethics form the system of internal control that governs how the Group conducts its business and manages the associated risks.

The Board has the ultimate responsibility for the management of risks and for ensuring the eﬀectiveness of internal control systems. The Board's review includes the Audit Committee's report on the risk matrix, signiﬁcant risks, and the mitigating actions we have put in place. Any weaknesses identiﬁed by the review are addressed by enhanced procedures to strengthen the relevant controls, and these are reviewed at regular intervals.

The Audit Committee is in turn assisted by the Group-level Risk Management Committee in evaluating the design and eﬀectiveness of the risk mitigation programme and control systems.

The Group Risk Management Committee (GRMC) meets every quarter and comprises the Group Chief Executive Oﬃcer, Group Chief Financial Oﬃcer, Non-Executive Director and Director-Management Assurance. The Group Head-Health, Safety, Environment & Sustainability is invited to attend these meetings. GRMC discusses key events impacting the risk proﬁle, key risks and uncertainties, emerging risks and progress against planned actions.

Group Project/Capex Council evaluates risks while reviewing any capital investment decisions as well as works on instituting risk management framework in projects

In addition to the above structure, other key risk governance and oversight committees in the Group include the following:

ƒ Finance Standing Committee (FSC)

comprises Group CEO, Group CFO and Non-Executive Director and it supports the Board by considering and approving matters related to ﬁnance, investment, banking, treasury, etc. Invitees to these committee meetings are the business CFOs, Group Head Treasury and BU Treasury Heads. In addition to this, the Investment Committee reviews the investment related risks

ƒ Sustainability Committee reviews sustainability related risks

In addition to the above, there are various group-level councils such as Procurement Council, Tax Council, HSE Council, Insurance Council, CSR Committee, etc. that work on identifying risks in those speciﬁc areas and mitigating them. The Group has a consistently applied methodology for identifying risks at the individual business level for existing operations and for ongoing projects.

At a business level, formal discussions on risk management occur at review meetings at least once a quarter. The respective businesses review their major risks, and changes in their nature and extent since the last assessment and discuss the control measures which are in place and further action plans. The control measures stated in the risk matrix are also periodically reviewed by the business management teams to verify their continued eﬀectiveness.

These meetings are chaired by the respective business CEOs and attended by CXOs, senior management and appropriate functional heads.

whose role is to create awareness of risks at senior management level and to develop and nurture a risk management culture. Risk mitigation plans form an integral part of the performance management process. Structured discussions on risk management also happen at business level with regard to their respective risk matrix and mitigation plans. The leadership teams of the businesses are accountable for governance of the risk management framework and they provide regular updates to the GRMC.

Each of our businesses have developed their own respective risk matrix, which is reviewed by their respective management committee/ executive committee, chaired by their CEOs. In addition, each business has developed its own risk register depending on the size of its operations and number of Strategic Business Units locations. Risks across these risk registers are aggregated and evaluated and the Group's principal risks are identiﬁed based on the frequency, and potential magnitude and impact of the risks identiﬁed.

This element is an important component of the overall internal control process, from which the Board obtains assurance. The scope of work, authority and resources of Management Assurance Services (MAS) are regularly reviewed by the Audit Committee. The responsibilities of MAS include recommending improvements in the control environment and reviewing compliance with our philosophy, policies and procedures.

Risk oﬃcers have been formally nominated at each of the operating businesses as well as at Group level,

The planning of internal audits is approached from a risk perspective. In preparing the internal audit plan, reference is made to the risk matrix, and inputs are sought from senior management, business teams and members of the Audit Committee. Inaddition, we make reference to past audit experience, ﬁnancial analysis and the current economic and business environment.

The year 2020 has seen the outbreak of COVID-19 (coronavirus) pandemic. As a result of COVID-19, we have seen macro-economic uncertainty with regards to prices and demand for commodities and oil & gas. Furthermore, recent global developments and uncertainty in oil supply in March have caused further volatility in commodity markets. The scale and duration of these developments remain uncertain but could impact earnings and cash ﬂow of resource companies.

The order in which these risks appear in the section below does not necessarily reﬂect the likelihood of their occurrence or the relative magnitude of their impact on our business. The risk direction of each risk has been reviewed based on events, economic conditions, changes in business environment and regulatory changes during the year. While Vedanta's risk management framework is designed to help the organisation meet its objectives, there can be no guarantee that the Group's risk management activities will mitigate or prevent these or other risks from occurring.

BUSINESS RISKS CONTINUED...

The Board, with the assistance of management, carries out periodic and robust assessments of the principal risks and uncertainties of the Group and tests the ﬁnancial plans for each of risks and uncertainties mentioned below.

SUSTAINABILITY RISKS

Impact

Health, safety and environ-ment (HSE)

The resources sector is subject to extensive health, safety and environmental laws, regulations and standards.

Evolving requirements and stakeholder expectations could result in increased cost or litigation or threaten the viability of operations in extreme cases.

Emissions and climate change

Our global presence exposes us to a number of jurisdictions in which regulations or laws have been, or are being, considered to limit or reduce emissions. The likely eﬀect of these changes could be to increase the cost for fossil fuels, impose levies for emissions in excess of certain permitted levels, and increase administrative costs for monitoring and reporting. Increasing regulation of greenhouse gas (GHG) emissions, including the progressive introduction of carbon emissions trading mechanisms and tighter emission reduction targets, is likely to raise costs and reduce demand growth.

Mitigation

ƒ HSE is a high priority area for Vedanta. Compliance with international and local regulations and standards, protecting our people, communities and the environment from harm and our operations from business interruptions are key focus areas
ƒ Policies and standards are in place to mitigate and minimise any HSE-related occurrences. Safety standards issued/continue to be issued to reduce risk level in high risk areas. Structured monitoring and a review mechanism and system of positive compliance reporting are in place
ƒ BU Leadership continues to emphasise on three focus areas i.e. Visible Felt Leadership, safety critical tasks and managing business partners
ƒ The process to improve learning from incidents is currently being improved with the aim of reducing re-occurrence of similar incidents
ƒ A Vedanta Critical Risk Management programme has been launched to identify critical risk controls and to measure, monitor and report the control eﬀectiveness
ƒ The Company has implemented a set of standards to align its sustainability framework with international practice. A structured sustainability assurance programme continues to operate in the business divisions covering environment, health, safety, community relations and human rights aspects, and is designed to embed our commitment at operational level
ƒ All businesses have appropriate policies in place for occupational health-related matters, supported by structured processes, controls and technology
ƒ To provide incentives for safe behaviour and eﬀective risk management, safety KPIs have been built into performance management of all employees
ƒ Carbon forum has been re-constituted with updated Terms of Reference and representation from all businesses. It has a mandate to develop and recommend to the ExCo and Board the carbon agenda for the Group
ƒ The Group Companies are actively working on reducing the GHG Emissions Intensity of our operations
ƒ A task force team is formulated to assess end-to-end operational requirement for FGD plant. We continue to engage with various stakeholders on the matter

Risk Direction

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Impact

Mitigation

Managing relationship with stakeholders

The continued success of our existing operations and future projects are in part dependent on broad support and a healthy relationship with our respective local communities. Failure to identify and manage local concerns and expectations can have a negative impact on relations and therefore aﬀect the organisation's reputation and social licence to operate and grow.

ƒ CSR approach to community programmes is governed by the following key considerations: the needs of the local people and the development plan in line with the new Companies Act in India; CSR guidelines; CSR National Voluntary Guidelines of theMinistry of Corporate Aﬀairs, Government of India; and the UN's sustainable development goals
ƒ Our BU teams are proactively engaging with communities and stakeholders through a proper and structured engagement plan, with the objective of working with them as partners
ƒ Business ExCos factor in these inputs, and then decide upon focus areas of CSR and budgets while also aligning with strategic business priorities
ƒ All BUs follow well-laid processes for recording and resolving all community grievances
ƒ Every business has a dedicated Community Development Manager, who is a part of the BU ExCos. They are supported with dedicated teams of community professionals
ƒ Our business leadership teams have periodic engagements with the local communities to build relations based on trust and mutual beneﬁt.
Our businesses seek to identify and minimise any potentially negative operational impacts and risks through responsible behaviour - acting transparently and ethically, promoting dialogue and complying with commitments to stakeholders
ƒ Stakeholder engagement is driven basis stakeholder engagement plan at each BUs by CSR and cross functional teams. Regular social and environment risk assessment discussions are happening at BU level
ƒ Strategic CSR communication is being worked upon for visibility.
Eﬀorts continue to meet with key stakeholders, showcase our state-of- the-art technology, increase the organic followers and enhance engagement through social media
ƒ CSR communication and engagement with all stakeholders - within and outside communities

Tailings dam stability

A release of waste material leading to loss of life, injuries, environmental damage, reputational damage, ﬁnancial costs and production impacts. A tailings dam failure is considered to be a catastrophic risk - i.e. a very high severity but very low frequency event that must be given the highest priority.

ƒ The Risk Management Committee included tailings dams on the Group Risk Register with a requirement for annual internal review and three- yearly external review
ƒ Operation of tailings dams is executed by suitably experienced personnel within the businesses
ƒ Third party has been engaged to review tailings dam operations, including improvement opportunities/remedial works required and the application of Operational Maintenance and Surveillance (OMS) manuals in all operations. This is an oversight role in addition to technical design and guidance arranged by respective business units. Technical guidelines are also being developed
ƒ Vedanta Tailings Management Standard has been reviewed, augmented and reissued including an annual, independent review of every dam and half-yearly CEO sign-oﬀ that dams continue to be managed within design parameters and in accordance with the last surveillance audit. Move towards dry tailings facilities has commenced
ƒ Those responsible for dam management received training from third party and will receive ongoing support and coaching from international consultants
ƒ Management standard implemented with business involvement
ƒ BU's are expected to ensure ongoing management of all tailings facilities with ExCo oversight with independent third-partyassessment on Golder recommendations implementation status y-o-y
ƒ Tailing management standard is updated to include latest best practices in tailing management. United Nations Environment Programme (UNEP)/ International Council on Mining & Metals (ICMM) Global Tailings Standard to be incorporated into Vedanta Standard during FY2021

Risk Direction

BUSINESS RISKS CONTINUED...

OPERATIONAL RISKS

Impact

Challenges in Aluminium and Power business

Our projects have been completed and may be subject to a number of challenges during operationalisation phase. These may also include challenges around sourcing raw materials and infrastructure-related aspects and concerns around ash utilisation/ evacuation.

ƒ One of the impacts of the COVID-19 slowdown has been falling Aluminium London Metal Exchange (LME) prices, partly oﬀset by lower alumina and carbon prices
ƒ Continue to pursue new coal linkages to ensure coal security. Operations at Chotia coal mines also started. We have received the vesting orders for Jamkhani coal block for Jharsuguda and look forward to operationalising in FY2021
ƒ Local sourcing of Bauxite and Alumina from Odisha
ƒ Jharsuguda facilities have ramped up satisfactorily
ƒ Project teams in place for Ash pond, Red mud, railway infrastructure and FGD
ƒ Dedicated teams working towards addressing the issue of new emission norms for power plants
ƒ Global technical experts have been inducted to strengthen operational excellence
ƒ Continuous focus on plant operating eﬃciency improvement programme to achieve design parameters, manpower rationalisation, logistics and cost reduction initiatives
ƒ Continuous augmentation of power security and infrastructure
ƒ Strong management team continues to work towards sustainable low-cost of production, operational excellence and securing key raw material linkages
ƒ Force majeure notice dated 29 March 2020 issued by Punjab State Power Corporation Limited to over 100 plants from which it buys electricity due to lower demand on account of COVID stating (a) not to declare capacity (b) delay in payments. Ministry of Power in its direction to Central Electricity Regulatory Commission have clearly mentioned that obligation to pay for the capacity charges as per the Power purchase agreement would continue Talwandi Saboo (TSPL) power plant matters are being addressed structurally by a competent team

Discovery risk

Increased production rates from our growth-oriented operations place demand on exploration and prospecting initiatives to replace R&R at a pace faster than depletion. A failure in our ability to discover new reserves, enhance existing reserves or develop new operations in suﬃcient quantities to maintain or grow the current level of our reserves could negatively aﬀect our prospects. There are numerous uncertainties inherent in estimating ore and oil & gas reserves, and geological, technical, and economic assumptions that are valid at the time of estimation. These may change signiﬁcantly when new information becomes available.

ƒ Dedicated exploration cell with continuous focus on enhancing exploration capabilities
ƒ Appropriate organisation and adequate ﬁnancial allocation in place for exploration
ƒ Strategic priority is to add to our R&R by extending resources at a faster rate than we deplete them, through continuous focus on drilling and exploration programme
ƒ Exploration Executive Committee (Exco) has been established to develop and implement strategy and review projects group wide
ƒ Continue to make applications for new exploration tenements in countries in which we operate under their respective legislative regimes.
ƒ Exploration-related systems being strengthened, and standardised group wide and new technologies being utilised wherever appropriate
ƒ International technical experts and agencies are working closely with our exploration teams to enhance our capabilities

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Mitigation

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Risk Direction

Impact

Mitigation

Breaches in IT / cybersecurity

Like many global organisations, our reliance on computers and network technology is increasing. These systems could be subject to security breaches resulting in theft, disclosure, or corruption of key/strategic information. Security breaches could also result in misappropriation of funds or disruptions to our business operations.

A cybersecurity breach could have an impact on business operations.

ƒ Group-level focus on formulating necessary frameworks, policies, and procedures in line with best practices and international standards
ƒ Implementation and adoption of various best-in-class tools and technologies for information security to create a robust security posture
ƒ Special focus to strengthen the security landscape of Plant Technical Systems (PTS) through various initiatives
ƒ Adoption of various international standards relating to Information Security, Disaster Recovery & Business Continuity Management, IT Risk Management and setting up internal IT processes and practices in line with these standards
ƒ Work towards ensuring strict adherence to the IT related SOPs so as to improve operating eﬀectiveness and continuous focus for employees to go through mandatory cybersecurity awareness training
ƒ Periodic assessment of entire IT systems landscapes and governance framework from vulnerability and penetration perspective through reputed expert agencies and addressing the identiﬁed observations in a time-bound manner

loss of assets or proﬁt due to natural calamities

Our operations may be subject to a number of circumstances not wholly within the Group's control. These include damage to or breakdown of equipment or infrastructure, unexpected geological variations or technical issues, extreme weather conditions and natural disasters - any of which could adversely aﬀect production and/or costs.

ƒ Vedanta has taken appropriate group insurance cover to mitigate this risk
ƒ An external agency reviews the risk portfolio and adequacy of this cover and assists us in our insurance portfolio
ƒ Our underwriters are reputed institutions and have capacity to underwrite our risk
ƒ Established mechanism of periodic insurance review in place at all entities. However, any occurrence not fully covered by insurance could have an adverse eﬀect on the Group's business
ƒ Continuous monitoring and periodic review of security function
ƒ Continue to focus on capability building within the Group

Cairn related challenges

Cairn India has 70% participating interest in Rajasthan Block. The production sharing contract (PSC) of Rajasthan Block runs till 2020. The Government of India has granted its approval for ten-year extension at less favourable terms, pursuant to its policy for extension of Pre-NELP Exploration Blocks, subject to certain conditions. Ramp up of production versus envisaged may have impact on proﬁtability.

ƒ RJ PSC 2020 extension was issued by DGH subject to certain conditions. Ongoing dialogue and communication with the government and relevant stakeholders to address the conditions
ƒ The applicability of the Pre-NELP Extension Policy to the RJ Block is currently sub judice
ƒ Drop in crude price due to COVID-19 slowdown coupled with refusal by key global producers to reduce their output. Gas prices have also halved in recent months due to fall in LNG prices globally. However, in the month of May, the crude prices have started improving
ƒ Discussions within teams as well as with partners have been initiated with an objective to optimise cost across all spheres of operations
ƒ Constant engagement with vendors/partners to ensure minimal project delay based on the current situation and plan to ramp-up
ƒ Government has extended the PSC for the Ravva block in Andhra Pradesh by 10 years. The growth projects are being implemented through an Integrated Contracting approach. Contracts have built in mechanism for risk and reward
ƒ Project management committee and project operating committee have been set to provide support to the outsourcing partner and address issues on time to enable better quality control as well as timely execution for growth projects

Risk Direction

BUSINESS RISKS CONTINUED...

COMPLIANCE RISKS

Impact

Regulatory and legal risk

We have operations in many countries around the globe. These may be impacted because of legal and regulatory changes in the countries in which we operate resulting in higher operating costs, and restrictions such as the imposition or increase in royalties or taxation rates, export duty, impacts on mining rights/bans, and change in legislation.

ƒ The Group and its business divisions monitor regulatory developments on an ongoing basis
ƒ Business-level teams identify and meet regulatory obligations and respond to emerging requirements
ƒ Focus has been to communicate our responsible mining credentials through representations to government and industry associations
ƒ Continue to demonstrate the Group's commitment to sustainability by proactive environmental, safety and CSR practices. Ongoing engagement with local community/media/NGOs
ƒ SOx compliant subsidiaries
ƒ Common compliance monitoring system being implemented in group companies. Legal requirements and a responsible person for compliance have been mapped in the system
ƒ Legal counsels within the Group continues to work on strengthening the compliance and governance framework and the resolution of legal disputes
ƒ Competent in-house legal organisation is in place at all the businesses and the legal teams have been strengthened with induction of senior legal professionals across all group companies
ƒ Standard Operating Procedures (SOPs) have been implemented across our businesses for compliance monitoring
ƒ Greater focus for timely closure of key non-compliances
ƒ Contract management framework has been strengthened with the issue of boiler plate clauses across the Group which will form part of all contracts. All key contract types have also been standardised
ƒ Framework for monitoring performance against anti-bribery and corruption guidelines is also in place

Tax related matters

Our businesses are in a tax regime and changes in any tax structure or any tax-related litigation may impact our proﬁtability.

ƒ Tax Council reviews all key tax litigations and provides advice to the Group
ƒ Continue to engage with concerned authorities on tax matters
ƒ Robust organisation in place at business and group-level to handle tax-related matters
ƒ Continue to consult and obtain opinion from reputable tax consulting ﬁrms on major tax matters to mitigate the tax risks on the group and its subsidiaries

Mitigation

Risk Direction

Leveraging technology for growth

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Impact

Mitigation

Fluctuation in commodity prices (including oil) and currency exchange rates

Prices and demand for the Group's products may remain volatile/uncertain and could be inﬂuenced by global economic conditions, natural disasters, weather, pandemics, such as the COVID-19 (coronavirus) outbreak, political instability, etc. Volatility in commodity prices and demand may adversely aﬀect our earnings, cash ﬂow and reserves.

Our assets, earnings and cash ﬂows are inﬂuenced by a variety of currencies due to the diversity of the countries in which we operate. Fluctuations in exchange rates of those currencies may have an impact on our ﬁnancials.

ƒ The Group has a well-diversiﬁed portfolio which acts as a hedge against ﬂuctuations in commodities and delivers cash ﬂows through the cycle
ƒ Pursue low-cost production, allowing proﬁtable supply throughout the commodity price cycle
ƒ Vedanta considers exposure to commodity price ﬂuctuations to be an integral part of the Group's business and its usual policy is to sell its products at prevailing market prices and not to enter into price hedging arrangements other than for businesses of custom smelting and purchased alumina, where back-to-back hedging is used to mitigate pricing risks. Strategic hedge, if any, is taken after appropriate deliberations and due approval from ExCo
ƒ Our forex policy prohibits forex speculation
ƒ Robust controls in forex management to hedge currency risk liabilities on a back-to-back basis
ƒ Finance standing committee reviews all forex and commodity-related risks and suggests necessary courses of action as needed by business divisions
ƒ Seek to mitigate the impact of short-term movements in currency on the businesses by hedging short-term exposures progressively, based on their maturity. However, large, or prolonged movements in exchange rates may have a material adverse eﬀect on the Group's businesses, operating results, ﬁnancial condition and/or prospects
ƒ Notes to the ﬁnancial statements in the Annual Report give details of the accounting policy followed in calculating the impact of currency translation

Major project delivery

Shortfall in achievement of expansion projects stated objectives leading to challenges in achieving stated business milestones - existing and new growth projects.

ƒ Empowered organisation structure has been put in place to drive growth projects. Project Management systems streamlined to ensure full accountability and value stream mapping
ƒ Strong focus on safety aspects in the project
ƒ Geo-technical audits are being carried out by independent agencies
ƒ Engaged Global engineering partner to do complete Life of Mine Planning and Capital Eﬃciency analysis to ensure that the project objectives are in sync with the BP and Growth targets
ƒ Standard speciﬁcations and SOPs for all operation to avoid variability.
Reputable contractors are engaged to ensure completion of the project on indicated timelines
ƒ Mines being developed using best in class technology and equipment and ensuring the highest level of productivity and safety. Digitalisation and Analytics to improve productivity and recovery
ƒ Stage gate process to review risks & remedy at multiple stages on the way
ƒ Robust quality control procedures have also been implemented to check safety and quality of services/design/actual physical work

Access to capital

The Group may not be able to meet its payment obligations when due or may be unable to borrow funds in the market at an acceptable price to fund actual or proposed commitments. A sustained adverse economic downturn and/or suspension of its operation in any business, aﬀecting revenue and free cash ﬂow generation, may cause stress on the Company's ability to raise ﬁnancing at competitive terms.

ƒ A focused team continues to work on proactive reﬁnancing initiatives with an objective to contain cost and extend tenor
ƒ The team is actively building the pipeline for long-term funds for near- to medium-term requirements both for reﬁnancing and growth capex
ƒ Track record of good relations with banks, and of raising borrowings in last few years
ƒ Regular discussions with rating agencies to build conﬁdence in operating performance
ƒ Business teams ensure continued compliance with the Group's treasury policies that govern our ﬁnancial risk management practices
ƒ CRISIL and India Ratings aﬃrmed the rating for VEDL of 'AA' however changed the outlook to negative due to sharp reduction in commodity prices in wake of COVID-19 pandemic
ƒ Credit matrix trending weaker due to challenging reﬁnancing environment and volatility in commodity prices (COVID-19)

Risk Direction

DIRECTORS**

BOARD OF

Our Board comprises eminent personalities bringing diﬀerent insights from diverse walks of life, and they collectively take onus of Vedanta's approach to creating value. Five out of our ten Directors are independent, thereby helping us strike the right balance between outside-in and inside-out perspectives.

ANIL AGARWAL,

Non Executive Chairman

Mr Agarwal is the Founder and Chairman of Vedanta Resources Limited, a Company which has grown its annual revenues from $1 Million to over $15 Billion in the past decade. Vedanta group has invested over $30 Billion in India and South Africa on organic growth projects. He has over four decades of entrepreneurial and business experience. He shaped the Group's strategic vision and now plays the role of chief mentor to a talent pool of over 100,000 direct and indirect employees. Under his

NAVIN AGARWAL, Executive Vice Chairman

Mr Navin Agarwal has been with the Group since its inception and has four decades of strategic executive experience. Under his stewardship, Vedanta has enjoyed leadership position in all the major sectors in which it operates. Over the years, he has been instrumentalleadership the Vedanta Group has achieved tremendous success, the Group got its ﬁrst big break in 1986, and over the years, it has achieved tremendous growth both organically and through value-generating mergers and acquisitions, creating a world-class diversiﬁed portfolio of large, structurally low-cost assets in oil & gas, zinc, silver, copper, iron ore, aluminium and steel. It is the only major natural resources Company in the entire Indian subcontinent. In the last nine years, Vedanta has contributed more than US$41.7 billion to the exchequer and currently contributes 1% to India's GDP.

Mr Agarwal's vision for the Company and the country is deeply interlinked, he is a strong advocate of reducing import dependency by increasing domestic production of resources that are abundantly available in our ecosystem, while maintaining the best environmental standards. The underlying fact behind his conviction is that domestic production will

in building a highly successful meritocratic organisation, anchored by an extraordinary force of 100,000 employees. He spearheads our strategy through a mix of organic growth and value-generating acquisitions leading to Vedanta's transformation into a globally diversiﬁed natural resources Company.

He is passionate about developing leadership talent and has been responsible for creating a culture of excellence at Vedanta through the application of advanced technologies and global best practices. He drives Vedanta's unwavering commitment to the highest standards of corporate governance and engagement with key stakeholders. His vision is to gradually unlock the enormous potential of the

create millions of jobs, save precious foreign exchange, build technological capital and push India towards mass development.

Mr Agarwal places considerable focus on safety and sustainable development for the beneﬁt of the surrounding communities. He created the philanthropic arm of the Group

- The Vedanta Foundation, with a deep-seated belief that businesses must give back to the society and help them prosper. He has generously pledged 75% of his wealth for social good. He initiated the Nand Ghar project which will transform the lives of over 100 million women and children by providing them holistic development opportunities. Similarly, there are many initiatives pertaining to medical care, sports, agriculture, nature conservation and more which are being undertaken under his guidance and direction.

natural resources sector and make it an engine of growth for India. The overarching vision of empowering the nation by achieving self-suﬃciency in the resource sector remains close to his heart.

In recognition of his exceptional distinction in the ﬁelds of business and entrepreneurship and contribution to the natural resources sector, he was conferred with the 'Industrialist of the Year' award by the Bombay Management Association for 2018. He is a fervent advocate of sustainable development and is committed to the empowerment of women and promotion of culture and sports.

** As on 6 June 2020

LALITA D GUPTE, Non-Executive Independent Director

Ms Gupte has more than three decades of experience in the ﬁnancial sector and has held various leadership positions in diverse areas. She is the former Joint Managing Director of ICICI Bank and was the Chairperson of ICICI Venture Funds Management Company Limited till October 2016. She is currently Chairperson of ICICI Lombard General Insurance Co. Ltd. and India Infradebt Ltd. and sits on other Boards.

She holds a bachelor's degree in Economics (Honours) and a master's degree in Management Studies.

She did her advanced management programme from INSEAD.

UPENDRA KUMAR SINHA, Non-Executive Independent Director

Mr Sinha has served as the Chairman of Securities and Exchange Board of India (SEBI) from February 2011 to March 2017. He was instrumental in bringing about key capital market reforms. Under his leadership, SEBI introduced signiﬁcant regulatory amendments to the various acts enhancing corporate governance and disclosure norms. Prior to SEBI, he was the Chairman & MD of UTI Asset Management Company Pvt. Ltd. and has also worked for the Department of Economic Aﬀairs under the Ministry of Finance.

MAHENDRA KUMAR SHARMA, Non-Executive Independent Director

Mr Sharma retired in May 2007 as the Vice-Chairman of Hindustan Unilever Limited. As Vice Chairman he had responsibility for H.R, Legal & Secretarial, Corporate Aﬀairs, Corporate Communications, Corporate Real Estate functions and New Ventures, Plantations & Export businesses of the company.

K VENKATARAMANAN, Non-Executive Independent Director

Mr Venkataramanan brings with him over four decades of experience and has also been CEO & Managing Director, Larsen & Toubro Limited (L&T) from April 2012. Further, he has also served on the L&T Board from May 1999 until his retirement in September 2015. He has spearheaded L&T in the world of Engineering & Construction, strengthened every aspect of Engineering Procurement Construction value chain and transformed L&T to one of the respected names in the global EPC fraternity. He is a Graduate in Chemical Engineering from Indian Institute of Technology, Delhi. He is also a distinguished alumni awardee from IIT Delhi.

He displays passion for ensuring highest standards of Corporate Governance and adherence to responsible and ethical conduct in all aspects of business operations. He holds bachelor's degree in Arts and Bachelors of Law Degree from Canning College, University of Lucknow, completed Post Graduate Diploma in Personnel Management from Department of Business Management, University of Delhi and Diploma in Labour Laws from Indian Law Institute, Delhi. In 1999 he was nominated to attend Advanced Management Program at Harvard Business School. He served on the seven member Committee constituted by the Government of India for redrafting the Companies Act and was also a member of the Naresh Chandra Committee constituted by the Government of India which formulated norms for corporate governance in India.

Mangala Processing Terminal, Barmer

BOARD OF DIRECTORS CONTINUED...

PRIYA AGARWAL, Non-Executive Non-Independent Director

Ms Agarwal brings with her experience in Public Relations with Ogilvy & Mather and in Human Resources with Korn Ferry International. She has done B.Sc. Psychology with Business Management from the University of Warwick in the UK. She anchors CSR, PR & Communications for the Group.

GR ARUN KUMAR, Whole-time Director & Chief Financial Oﬃcer

Mr Arun Kumar has over 24 years of experience at global multinationals like Hindustan Unilever and General Electric. Prior to his joining Vedanta, he was the CFO for General Electric's Asia-Paciﬁc Lighting & Appliances businesses based out of Shanghai. He is responsible for overall health of the balance sheet, driving performance in proﬁt and cash, treasury, investor relations, credit ratings, tax, secretarial, controllership, recording and reporting and other key strategic matters from time to time. He is a Fellow Member of the Institute of Chartered Accountants of India.

Women conducting maintenance work in the Rajpura Dariba Mine

MANAGEMENT

COMMITTEE **

Vedanta is on the continuous journey of growth and expansion with best-in-class safety, benchmark technology, and cost eﬃciency. We continuously ensure that we have the right management in place to drive our business and take the organisation to the next level.

In line with this vision, a Group Management Committee has been formed which will collectively be responsible for all key decisions taken for the growth of organisation.

mEmBERs oF ThE mAnAgEmEnT CommITTEE:

SUNIL DUGGAL

Chief Executive Oﬃcer -

Vedanta Limited and CEO- Hindustan Zinc Limited

Mr Sunil Duggal was appointed as the CEO & Whole-time Director of Hindustan Zinc Limited (HZL), a subsidiary of the Company in 2015. He had been associated with HZL

MADHU SRIVASTAVA

Chief Human Resources Oﬃcer

Ms Srivastava was appointed as the Chief Human Resources Oﬃcer for Vedanta Group in December 2018. She has been associated with thesince 2010 as Executive Director and thereafter became the Chief Operating Oﬃcer in the year 2012 and Dy. CEO in 2014. He has been appointed as the Interim CEO of Vedanta Limited with eﬀect from 6 April 2020.

He is a result oriented professional with over 36 years of experience of leading high-performance teams and more than 20+ years in leadership positions. He is known for his ability to calmly navigate through tough and challenging times, nurture and grow a business, evaluate opportunities and risks and successfully drive eﬃciency and productivity whilst reducing costs and ineﬃciencies and deliver innovative solutions to challenges. His thrust on adopting best-in-class mining and smeltingGroup for more than seven years and in her earlier role, she was the CHRO for Cairn Oil & Gas business and led the Talent Acquisition and Diversity & Inclusion functions for the Group. Under her leadership, the Group has put in place the right HR policies, progressive people practices and frameworks for talent acquisition and talent management across Vedanta. She has 20 years of experience across HR as well as Sales, Marketing and Operations, spanning the FMCG, telecom, ITES, BFSI and natural resources industries.

She started her professional journey in 1999 with Godrej wheretechniques, state-of-the-art, environment-friendly technologies and mechanisation, automation & digitalisation of operational activities has added great value.

He has an Electrical Engineering degree from Thapar Institute of Engineering & Technology, Patiala. He is an Alumni of IMD, Lausanne - Switzerland and IIM, Kolkata.

He is serving as Vice Chairman - International Zinc Association, President - Federation of Indian Mineral Industries, President - Indian Lead Zinc Development Association. Recently, he has been appointed as the Chair - Confederation of Indian Industry (CII) National Committee on Mining.

she handled sales in Gujarat and Maharashtra and later moved to the Corporate Sales & Marketing role. Post working with companies like GE Capital and Reliance in Operations & Marketing proﬁles, she started her Human Resources journey in 2006 by joining Genpact as Assistant Vice President, Talent Acquisition where she led middle management hiring. She then went on to lead the recruitments for Citibank's India operations as Vice President, HR before joining Vedanta in 2012. She has completed her PGDM in Marketing and Sales, from the IIM, Ahmedabad.

(HZL), a subsidiary of the Company in February 2019. He has been associated with Vedanta Group since October 1998 and has held key senior leadership roles in both ﬁnance and commercial functions across the Group companies. He has been an integral part of Group Ethics Committee since 2016 and an active member of Group insurance council for over ﬁve years.

He is a versatile leader and has over 21 years of experience in leading high-performance teams, developing and executing strategic initiatives, driving business excellence, and cultural transformation. He has contributed signiﬁcantly in unlocking the business value through his leadership and strategic roles at Telecom cable,Copper, Aluminum and Power business and Zinc. He is a result oriented professional and is extremely passionate about sustainability and resource productivity. He has a proven track record of adopting best-in-class technologies and processes to increase eﬃciencies and optimise cost with a focus on building automation and digitalisation of operational activities. He believes deﬁning 'personal success' as his ability to make 'others successful'.

He is a qualiﬁed Chartered Accountant and Bachelor of Commerce. He has attended General Management Program from Harvard Business School in 2011.

He is responsible for overall health of the balance sheet, driving performance in proﬁt and cash, treasury, investor relations, credit ratings, tax, secretarial, controllership, recording & reportingand other key strategic matters from time to time. He is a Fellow Member of the Institute of Chartered Accountants of India.

EXECUTIVE

COMMITTEE **

The Executive Committee (ExCo) supports in the day-to-day running of the Company and meets on a monthly basis. It comprises leaders from diﬀerent businesses and key verticals across the Company. It is entrusted with executing the strategy adopted by the Board, allocating resources in line with delegated authorities, managing risk and monitoring the operational and ﬁnancial performance of the Company.

The authority is delegated by the Executive Committee to the respective Chief Executive Oﬃcer of each of the businesses. The Group Chief Executive Oﬃcer keeps the Board informed of the ExCos activities through his standing reports to the Board.

DILIP GOLANI Director - Management Assurance

ANDREW LEWIN

Group Health, Safety, Environment & Sustainability Head

JAMES CARTWRIGHT Head - Investor Relations

Mr Golani currently heads the Group's Management Assurance Services function. He previously headed the Sales and Marketing Division for HZL and the Group's performance management function. Prior to joining the Group in April 2000, he was a member of the Unilever corporate audit team responsible for auditing the Unilever group companies in Central Asia, the Middle East and Africa region. Prior to that, he was responsible for managing operations and marketing functions for one of

Mr Lewin joined us as Group Health, Safety, Environment & Sustainability Head with eﬀect from February 2020.

He has over 32 years of experience within mining and oil & gas industries. He was previously Managing Director at Spectrum Risk Consulting, Australia. He has also held a number of senior roles at BHP Billiton, Newmont Mining Corporation and other companies across USA, Australia and the UK with responsibility for health, safety, environment and sustainability assurance. He has a PhD in ChemistryMr Cartwright was appointed Head of Investor Relations for Vedanta Group in October 2019. He is working towards enhancing the quality, depth and diversity of our shareholder base and investors to ensure optimum valuation for the Company. He has 25 years of rich leadership experience in capital markets, speciﬁcally across natural resources including oil & gas, utilities and handling of the ESG community. Prior to joining Vedanta, he was Managing Director of the

the exports businesses of Unilever India. He has over 30 years of experience and has previously worked with organisations such as Union Carbide India Limited and Ranbaxy Laboratories Limited. He holds a bachelor's degree in Mechanical Engineering and has completed his Post Graduate studies in Industrial Engineering and Management from the National Institute of Industrial Engineering, Mumbai, India.

Institutional Equities Division of Morgan Stanley. He also has worked with UBS Investment Bank & Merrill Lynch Europe. He holds bachelor's degree with Honours in Geology from Bristol University, England.

from University of Waterloo and Post Graduate Diploma in Health and Safety from Aston University. He also holds a MSc in Physics from The University of Manchester, and a BSc (Honours) in Chemistry from University of Bristol.

Mr Kapur was appointed as Chief Executive Oﬃcer, Aluminium & Power in March 2019. He leads the Aluminium & Power business for Vedanta comprising 2.3 mtpa installed smelter capacity, 8 GW of power and 2 mtpa of alumina reﬁnery. Prior to his appointment at Vedanta Limited, he was the Managing Director & Chief Executive Oﬃcer for Ambuja Cements.

He started his career as an Executive Assistant to the founder & Managing Director of Ambuja Cements Ltd. He went on to handle various strategicMr Kumar was appointed the Chief Executive Oﬃcer of our copper operations in Tuticorin, Silvassa and Fujairah Gold FZC and Director of Malco Energy in March 2019. In his career of over 29 years, he has worked with large conglomerates like TATA Steel, Mittal Steel, Adani Ports, Gujrat Guardian Limited and United Breweries Limited. Prior to joining us at Sterlite Copper as Chief Executive Oﬃcer, he was the Chief Operating Oﬃcer at Hindustan Zinc Limited. He holds a bachelor'spositions at Ambuja Cements with his last position as Managing Director & Chief Executive Oﬃcer. He holds a Graduate degree in Economics from St. Xavier's College, Mumbai, an MBA from KJ Somaiya Institute, Mumbai and is an alumnus of Wharton's Advanced Management Program.

degree of Technology (Honours) in Mechanical Engineering from Indian Institute of Technology Kharagpur and Post Graduate Diploma in Business Management with specialisation in Operations Management and Information Technology from XLRI, Jamshedpur, India.

Mr Misra was appointed as Dy. CEO, HZL on 20 November 2019. In his previous role, he was associated with TATA Steel as Vice President- Raw Materials. He has 31 years of rich and diverse experience in leading various strategic positions within TATA Steel. He has a bachelor's degree in Electrical Engineering from IIT Kharagpur, a Diploma in Mining and Beneﬁciation from University of New South Wales Sydney and a diploma in general management from CEDEP, France.

** As on 6 June 2020

EXECUTIVE COMMITTEE CONTINUED...

RAHUL TRIVEDI SHARMA Chief Executive Oﬃcer (Acting)-

VAL- Lanjigarh

PANKAJ MALHAN Chief Executive Oﬃcer- Electrosteel Steels Limited

Mr Sharma joined the Vedanta Group in 1998, and is currently Chief Executive Oﬃcer of Alumina Business, eﬀective April 2019, prior to which he was working as Director - Corporate Strategy (Aluminium and Power). He has varied experience of over 25 years and has held leadership positions at Vedanta Limited and Sterlite Technologies Ltd. Prior to joining Vedanta he was Chief Marketing Oﬃcer (Domestic and International) and Business Head - Integrated Management System at Sterlite Technologies Ltd.

He has played a signiﬁcant role in driving various policies and creating a strategic framework for variousMr Malhan is the Chief Executive Oﬃcer of ESL and joined ESL in October 2018. He holds a Bachelor in Technology in Instrumentation & Control from National Institute of Technology, Jalandhar, India, and also has done Post Graduate Diploma in Business Management from XLRI, Jamshedpur, India. He joined ESL from TATA Steel, where he was the Head - Engineering and Project. He was responsible for leading TATA Steel's capital expansion programmes. He was associated with TATA Group since

ABHIJIT PATI

Chief Executive Oﬃcer- BALCO

Mr Pati was appointed as Chief Executive Oﬃcer of BALCO on 25th

July 2019. Prior to this, he was CEO of our Aluminium business, Jharsuguda from March 2015. Earlier he was the president and Chief Operating Oﬃcer of our aluminium and power business at Odisha since April 2012. He has over 31 years of experience in aluminium industry. Prior to joining us, he was the Vice President with Hindalco Industries Limited. He started his career as a budding engineer with Indian Aluminium Company in the year 1989. He was awarded with the 'Exceptional Contributor Award' from the Aditya Birla Group Chairman,

Mr Kumar Mangalam Birla for signiﬁcant contribution to turn around Hirakud Aluminium Smelter in 2006 and won the prestigious British Sword of Honor for the Hirakud Smelter in

2000 and has held various senior management positions at TATA Steel, TATA Blue Scope Steel Limited and TATA power Limited. Prior to joining TATA group, he has worked with Indian Acrylics Limited and Fisher Rosemount Limited.

the year 1999. He is a member of the Bureau of Energy Eﬃciency under Ministry of Power, Government of India. He is also holding the position of Vice President in Aluminium Association of India and member of the governing body. He is two times gold medalist from prestigious institutes like Calcutta University and International Management Institute, New Delhi. He has a ﬁrst class honours bachelor's degree in Chemical Engineering from Calcutta University and a master's in Business Administration from International Management Institute, New Delhi.

government reforms for development of exploration, mining and non-ferrous metal sector in the country in the most sustainable manner and is also the Co-Chairman of the Federation of Indian Chambers of Commerce & Industry (FICCI) Mining Committee. He is an alumnus of IIM-Ahmedabad Executive General Management program, has an MBA in Marketing and a BE in Electronics and Communication.

Mr Bose was appointed as Corporate Counsel for legal matters across the group, with eﬀect from 11 October, 2019. In addition to the current responsibilities, he also continues to hold the charge as the Head - Legal, Hindustan Zinc Limited (A Vedanta Limited subsidiary). He joined our Company in February 2016 as Deputy Legal Head of Hindustan Zinc Limited. He has almost 20 years of experience in complex litigations, contract negotiations, regulatory issues, compliance assurance, advocacy andMr Nayyar was appointed as Director, Economics & Policy with eﬀect from 11 October, 2019. Prior to this, he was Chief Economist of Vedanta Ltd. since October 2018. Before joining Vedanta, he was Oﬃcer on Special Duty and Head, Economics, Finance and Commerce at NITI Aayog, Government of India between October 2015 and October 2018. In this role, functionally equivalent to Joint Secretary, Government of India, he was responsible for all policy matters related to the Departments of Economic Aﬀairs, Revenue, Financial Services, Investment and Public Asset Management and Commerce. He was Secretary of the Inter-Ministerial Committee on Sick and Loss-Making Public-Sector Enterprises, Member-Secretary of NITI Aayog's Committee on Strategic Disinvestmentand Member, Spices Board. Prior to joining Government, he spent several years in the media in senior positions. He was India Columnist, Bloomberg View, Managing Editor, The Quint, Editor-at-large, Firstpost. com, Deputy Editor, India Today and Opinion Editor, Financial Express. He holds a BA Honours in Economics from St. Stephen's College, M.A. in Philosophy, Politics and Economics from Merton College, Oxford and M. Phil in Development Economics from Trinity College, Cambridge where he also pursued doctoral research in Economics and taught development economics.

Mr Sharma was appointed the Chief Executive Oﬃcer of our power business TSPL on 25 July 2019, prior to which he was appointed CEO of BALCO in March 2017. He has experience of over 31 years in various national and multi-national companies. He served HMT Watches Limited, Su-Raj Diamonds India Private Limited, AMP India Private Limited (now Tyco), Praxair India Private Limited, Jindal Praxair Oxygen Company Limited and JSW Steel Limited in various key positions. He joined as Location Head of Chanderiya Smelter of HZL in 2012 and was gradually elevated to the Chief Operating Oﬃcer of smelters divisionof HZL in June 2014. During his tenure at HZL, he played integral role in the growth of the Company and made signiﬁcant contribution in smelter production. He holds bachelor's degree with Honours in Mechanical Engineering from Engineering College Kota, University of Rajasthan and a master's in Business Administration in Marketing from Sikkim Manipal University, Gangtok, India.

taxation matters. Prior to joining our Company, he has experience working with organisation like DuPont, Bharti group, Vaish Associates (Law Firm), BSNL and Ministry of Corporate Aﬀairs. He is a Law Graduate from Delhi University and holds a master's degree in business laws from National Law University (NLU) Bangalore.

He is also a qualiﬁed Company Secretary and Cost and Management Accountant.

EXECUTIVE COMMITTEE CONTINUED...

LEENA VERENKAR Group Head - CSR

ROMA BALWANI

Director - Communications & Brand

Ms Verenkar was appointed as Group Head - CSR, with eﬀect from October 11, 2019. In addition to the current responsibilities, she also holds the charge as the Chief Advocacy & PR and Head - CSR for Sesa Iron Ore Business since 2015. Prior to this, she was Head - CSR of Iron Ore Goa, since 2010. She started her career with our Company in 1996, in the ﬁeld of environment management & compliance and led the environment team for 12 years. She has more than 25 years of experience in environmentMs Balwani was appointed Director- Communications & Brand with eﬀect from 11 October 2019. Earlier she was Sr. Advisor since April 2019. Her prior stint with Vedanta was as President-Group Communications, Sustainability and Corporate Social Responsibility from April 2014 to August 2017. Prior to joining our Company, she was Chief Communications Oﬃcer at Mahindra & Mahindra Limited. With over three decades of experience, she has won several Indian and International awards and accolades and she speaks at several summits on Sustainable Development & Communicationsmanagement, community relations, advocacy & PR. She holds master's degree in Microbiology from

Goa University and in ecology & environment from Bhopal University. She has Fulbright Scholarship by US foundation in India and LEAD fellowship by Lead India. She is also recognised as Women Leader of the year by Economic Times and 100 most impactful CSR leaders (a global listing) by World CSR in 2017.

in India and overseas. She has the distinction of being included for three consecutive years in the Holmes Global Report, USA, a recognition in the Global Inﬂuence 100 listing of In-house Communicators. She is a Director of CMI FPE, and the Indian subsidiary of the Belgian Company CMI. She also chairs the CSR Committee as a Board member. She is an Economics Graduate from Mumbai University and a Post Graduate Diploma in Marketing Management and has completed Executive Management Program at Harvard Business School, Massachusetts, USA.

Mr Singh is the CEO of our Aluminium business- Jharsuguda since 25 July 2019. Prior to this role he was COO of TSPL. He has a rich experience of 38 years in power industry and played a pivotal role in stabilisation of TSPL operations. He has also worked for companies like National Thermal Power Corporation Ltd., Essar Power and JSW Energy Ltd. He has a Post Graduate degree PGDBM from MDI, Gurgaon and bachelor's degree in Mechanical Engineering from MLN Regional Engineering College.

Mr Mazumdar was appointed as Interim CEO of our Iron Ore Business in July 2019. Prior to this role he was the Deputy Chief Executive Oﬃcer of Iron Ore Business and Vice President since 1 October 2016. He has been associated with Vedanta for over 24 years and has held various strategic and leadership roles. He has a bachelor's degree in Mining Engineering from NIT Surathkal.

MANAGING OUR

BUSINESS

SUSTAINABILITY

Our sustainability strategy is driven by the need to address the expectations of our stakeholders through mutual dialogue and need-based intervention, while at the same time addressing the priorities of business performance. As a large Company creating measurable economic and other impacts, we are mindful of our commitments to society, our people and our environment. We are also well attuned to global expectations and standards regarding sustainability, such as the United Nations Sustainable Development Goals (UN SDGs).

LASTING VALUE

FIRM FOUNDATION FOR

Good corporate governance, which is a pre-requisite for protecting shareholder value, as well as delivering sustainable growth, underpins the delivery of our strategic objectives.

By overseeing the conduct of business with strict adherence to ethics and responsibility, the entire structure, cascading from the Board of Directors at the top, supported by processes, policies and the Vedanta Sustainability Framework, enhances the prosperity, long-term viability and sustainability of the Company.

COMPOSITION OF THE BOARD

In pursuance of our commitment towards responsible business in compliance with the applicable provisions of Companies Act, 2013 and Securities and Exchange Board of India (SEBI) Listing Regulations, including the amendments thereof, our Board presents an appropriate balance between Executive, Non-Executive and Independent Directors to distinct its functions of management and governance, to promote shareholder interests and to govern Vedanta eﬀectively.

As on June 6, 2020, the Board comprises eight members as listed below:

Name	Designation	Gender	Age
Age Group	Less than 30 years	Between 30-50 years	Above 50 years
Number of Directors	0	2	6
Gender	Male	Female
Number of Directors	6	2

Mr. Anil Agarwal	Non-Executive Chairman	Male	67
Mr. Navin Agarwal	Executive Vice-Chairman	Male	59
Mr. K Venkataramanan	Non-Executive Independent Director	Male	75
Ms. Lalita D. Gupte	Non-Executive Independent Director	Female	71
Mr. Mahendra Kumar Sharma	Non-Executive Independent Director	Male	73
Mr. UK Sinha	Non-Executive Independent Director	Male	68
Ms. Priya Agarwal	Non-Executive Director	Female	30
Mr. GR Arun Kumar	Whole-time Director & CFO	Male	48

Our governance philosophy stems from our values of Trust, Entrepreneurship, Innovation, Excellence, Integrity, Respect and Care.

Our Board provides entrepreneurial leadership for the Company and strategic direction to the management. It is collectively responsible for promoting the long-term success of the Company through the creation and delivery of sustainable shareholder value. The reporting structure, as shown below, between the Board, Board Committees and Management Executive Committees, forms the backbone of the Group's Corporate

Management Committee & Executive Committee

Governance framework. As part of its decision-making processes, the Board considers the long-term consequences of its decisions, the interests of various stakeholders, including employees, the impact of the Group's operations on the environment and the need to conduct its business ethically. This is achieved through a prudent and robust risk management framework, internal controls and strong governance processes.

BOARD OF DIRECTORS

Our Board provides strategic perspective and steers the business in line with the commitments made to various stakeholders and sustainable growth. They are supported by:

ƒ Established committees
ƒ Sustainable development team
ƒ Vedanta Sustainability Framework and Vedanta Sustainability
ƒ Assurance Process (VSAP)
ƒ Code of Business Conduct and Ethics

By overseeing the conduct of business with strict adherence to ethics and responsibility, the structure enhances the prosperity and long-term viability of the Company. The Board Sustainability Committee meets every six months.

Audit Committee

Nomination &	Stakeholder	Corporate Social
Remuneration	Relationship	Responsibility
Committee	Committee	Committee

Sustainablity Committee

Finance Standing	Share &
Committee of	Debenture
Directors	Transfer Committe

Committee of

DirectorsRisk Management Committee

SUSTAINABILITY AND ESG CONTINUED...

Chaired by

MR. SUNIL DUGGAL

CEO

The Committee meets monthly and is responsible for implementing strategic plans formulated by the Board, allocating resources in line with delegated authorities and monitoring the operational and ﬁnancial performance of the Group.

SUSTAINABLE DEVELOPMENT TEAM Group (and BUs) HSE & Sustainability Teams

COMMUNITY RELATIONS

ENVIRONMENTOCCUPATIONALSAFETY

HEALTHDISCLOSURE & COMMUNICATION

REVIEW OF SUSTAINABLE DEVELOPMENT TEAM AND

SEGMENT BUSINESS COMMITTEE

(Monthly Operational Reviews/Business Management Group Meetings)

MANAGEMENT APPROACH

OUR SUSTAINABILITY

Our goal is to create long-term value for all our stakeholders. To deliver on this promise, we have developed the Vedanta Sustainability Framework that enables our business units to adopt sustainable business principles into their systems and procedures.

VEDANTA SUSTAINABILITY FRAMEWORK

Developed in line with global standards from international bodies such as ICMM, International Finance Corporation (IFC), Global Reporting Initiative (GRI), United Nations Global Compact (UNGC) and SDGs, the Framework comprises several policies, standards and guidance notes, which help us in its execution. International consultants are also engaged to audit and provide feedback on the Framework's strengths and weaknesses.

8	87 STANDARDS &	ROBUST
POLICIES	GUIDANCE NOTES	MONITORING
ƒ Biodiversity, Energy &	ƒ Covering all of the policy	ƒ Annual audit (VSAP)
Carbon, HIV-AIDS, HSE,	subject areas	conducted at all Vedanta
Human Rights, Social,	ƒ In line with ICMM, IFC	locations to check
Supplier & Contractor	Performance Standards,	compliance with VSF
Sustainability	Global Reporting Initiative	ƒ Monitored by Group ExCo
Management, Water	(GRI)

VEDANTA SUSTAINABILITY AssuRAnCE pRoCEss (VsAp)

VSAP is our sustainability risk assurance tool, used to assess the compliance of all our businesses with the Vedanta Sustainability Framework.

The assurance model has diﬀerent modules, which cover environment, health, safety, community and human rights elements. The assurance system works on the premise of tracking corrective and preventive action by each of our businesses and commissioning periodic formal audits by external experts.

VSAP is an annual process with clear tracking of results by the Sustainability Committee and the Executive Committee, which in turn report to the Board. As per the identiﬁed gaps, respective businesses make management plans and undertake corrective gap-ﬁlling actions, which are periodically reviewed, evaluated and documented. The successes and failures are identiﬁed and highlighted, and cross-learning opportunities are created.

VSAP has been instrumental in helping us embed sustainable development into every activity that we undertake.

Gamsberg Wet Area (Flotation, Thickener)

EXPECTATIONS WITH

ALIGNING STAKEHOLDER

Continuous engagement with our stakeholders allows us to remain responsive to their expectations, foresee emerging risks and identify opportunities. Our social responsibility performance standards help ensure eﬀective engagement with relevant stakeholders across multiple industries and geographies; provide adequate grievance mechanisms to help resolve situations of potential conﬂict; and develop specialised standards for potentially vulnerable communities such as indigenous peoples. The process follows ﬁve principles of engagement:

Enhancing agricultural incomes through innovative techniques

STAKEHOLDER ENGAGEMENT

BUSINESS STRATEGY

ASK	ANSWER	ANALYSE	ALIGN	ACT
Our dialogue	We disclose not	We have established	We work hand-	We back up
begins with	just because	a robust investigation	in-hand with	our words with
questions that	we want to	process for complaints	stakeholders and	demonstrable
solicit feedback.	be heard, but	reported via the	align our goals and	actions that
Our stakeholders	because we are	whistleblowing	actions with their	move the
have access	responsible. We	mechanism,	high-priority areas.	needle towards
to a number	aim to provide	sustainability and	The feedback from	promised
of platforms	a constructive	group communications	all our engagement	outcomes.
to reach out	response to	email IDs, involving	becomes part of
to Vedanta	feedback	senior management	our materiality
personnel and	received.	and relevant personnel.	identiﬁcation
voice concerns.	process.

The table below represents an overview of the ongoing engagement with our stakeholders and the manner in which Vedanta responds to their expectations.

Key Expectations

Initiatives in FY2020

Local Community	Community group meetings, village council meetings, community needs/social impact assessments, public hearings, grievance mechanisms, cultural events, engaging philanthropically with communities via the Vedanta Foundation	ƒ Need-based community development projects ƒ Increasing reach of community development programmes ƒ Improved grievance mechanism for community	ƒ ₹296 Crore invested in Social Investment ƒ 3.26 million beneﬁciaries of community development programmes ƒ Community grievance process followed at all operations
Employees	Chairman's workshops, Chairman's/CEO's town hall meetings, feedback sessions, performance management systems, various meetings at plant level, V-Connect mentor programme, event management committee and welfare committee, women's club	ƒ Improved training on safety ƒ Increased opportunities for career growth ƒ Increasing the gender diversity of the workforce	ƒ 1.55 million person-hours of training on safety ƒ 30% of all new hires are women ƒ Identiﬁcation of top talents and future leaders through workshops
Shareholders, Investors, & Lenders	Regular updates, investor meetings, site visits, AGM and conference, quarterly results calls, dedicated contact channel -Vedantaltd.ir@vedanta.co.inandsustainability@vedanta.co.in	ƒ Consistent disclosure on economic, social, and environmental performance	ƒ ₹83,545 Crore in revenue ƒ Sustainability assurance audits conducted through Vedanta Sustainability Assurance Programme (VSAP) ƒ Investor brieﬁngs and pro-active engagement with the investment community on ESG topics
Civil Societies	Partnerships with, and membership of international organisations, working relationships with organisations on speciﬁc projects, engagement with international, national, and local NGOs, conferences and workshops, dedicated contact channel -sustainability@vedanta.co.in	ƒ Expectation of being aligned with the global sustainability agenda ƒ Commitment to ensuring human rights for all	ƒ Membership of international organisations including the United Nations Global Compact, TERI, CII, and Indian Biodiversity Business Initiative (IBBI) ƒ Focus towards implementing Sustainable Development Goals ƒ Compliance to the Modern Slavery Act
Industry (Suppliers, Customers, Peers, Media)	Customer satisfaction surveys, scorecards, in-person visits to customers, suppliers, and vendor meetings	ƒ Consistent implementation of the cCode of Business Conduct and Ethics ƒ Ensuring contractual integrity	ƒ Hotline service and email ID to receive whistle-blower complaints
Governments	Participation in government consultation programmes, engagement with national, state, and regional government bodies at business and operational level	ƒ Compliance with laws ƒ Contributing towards the economic development of the nation	ƒ ~₹32,400 crore in payments to the exchequer

ESG PRIORITIES

MATERIALITY ASSESSMENT

DELIVERING ON

Energy & Climate Change	Noise & Vibration	Land Acquisition & Rehabilitation
Water Management	Tailings Dam Management
Solid Waste Management	Human Rights
Air Emissions	Resource Eﬃciency
Biodiversity	Transparent Disclosure
Health & Safety	Materials Management
Community Development	Learning & Development
Supply Chain Sustainability	Use of Recycled Material
Grievance Management	Brand Salience
Compliance to Government Regulations	Innovation
Upholding Rights of Indigenous People	Governance for Sustainability
Ethical Business Practices
Diversity & Equal Opportunity

Manage

In addition to the normal course of engagement, overseen by respective BUs and functions of the business, Vedanta, conducts a formal stakeholder engagement and materiality assessment exercise, once in every three years. This exercise is conducted to ensure that we have accounted for all expectations or concerns conveyed to us by our stakeholders, especially with regard to sustainability performance.

During FY2020, we completed our largest such exercise, having interacted with nearly 2,900 internal and external stakeholders via online surveys, focus group discussions, and face-to-face interactions. The results of this exercise have been distilled by our senior leadership team into areas that require our immediate attention and intervention (High); areas that can be managed using our existing frameworks and protocols (Medium); and areas that need continuous monitoring to prevent them from becoming critical for the organisation over time (Low). Classiﬁcation of the areas was done using the following framework: (i) Importance to external stakeholders; (ii) Importance to the Vedanta leadership team; (iii) Potential regulatory impact; (iv) Potential reputational impact; and (v) Potential ﬁnancial impact.

These results are speciﬁc to ESG-related expectations from the Company and do not include aspects related to economic/ﬁnancial expectations.

HighAct

Medium

We further analysed the areas with 'high' expectations to explore how they are integrated with the UN Sustainable Development Goals. The ﬁnal set of actions and targets, in alignment with UN SDGs, are described in the table below:

AchievedPartially AchievedNot Achieved

PerformanceProposed Targets FY2021 & Beyond

Health & Safety	SDG 8.8. Protect labour rights and provide safe work conditions for all	Achieve score >75% in ten safety performance standards	Average score <75%	Achieve score >75% in ten safety performance standards
Zero fatal accidents and an LTIFR of 0.30	7 fatalities LTIFR: 0.67	I. Zero fatal accidents II. Introduce TRIFR as the primary lagging metric for safety

Water Management	SDG 6.4. Increase water use eﬃciency and ensure sustainable withdrawals SDG 12.2: Achieve sustainable management and eﬃcient use of natural resources	Achieved 2.5 million m^3 of water savings	2.99 million m3 of water savings achieved	I. Review our water targets in alignment with global best practices. II. Achieve water savings of 0.5 million m3 III. For water stressed areas - have a sustainable sourcing model by 2025
Energy & Climate Change	SDG 12.2: Achieve sustainable management and eﬃcient use of natural resources SDG 13.2: Integrate climate change measures into strategies, polices, and planning	Achieve 1.75 million GJ energy saving	~1.92 million GJ of energy savings achieved	Achieve energy savings of 3 million GJ
Reduce our GHG emissions intensity by 16% from a 2012 baseline by 2020	13.83% reduction in GHG emissions intensity	Develop revised 5/10-year GHG emissions intensity reduction targets
Solid Waste Management	SDG 12.5. Substantially reduce waste generation through prevention, reduction, recycling and reuse	Achieve ﬂy ash utilisation of 80%	105% utilisation of ﬂy ash	Sustain ﬂy-ash utilization at 100% or more
Tailings Dam Management	NA	Third-party review of tailings/ash dyke management system and development of speciﬁc improvement plan (India operations)	Completed	Continue with third-Party review of our tailings dam/ ash dyke structures
Biodiversity	SDG 15.9. Introduce biodiversity management and planning into development processes	Completed	new Target: Review of site-biodiversity risk across all our locations

ENVIRONMENTAL STEWARDSHIP CONTINUED...

IssuesEmerging as SDG Alignment 'High' Priority

FY2020 Targets

SECURING OUR SOCIAL LICENCE TO OPERATECommunity DevelopmentGrievance ManagementSupply Chain SustainabilityUpholding Rights of Indigenous People

SDG 2.1. End hunger and ensure access to safe, nutritious, and suﬃcient food, all year round

SDG 2.2. End all forms of malnutrition

Ensure alignment of all BU plans with issues identiﬁed during baseline surveys

1,200 Nand Ghars to be constructed by FY2020

Rollout of employee engagement platform across the Group

No speciﬁc SDG

A standard online community grievance record/ redressal software to be introduced across the GroupSDG 8.7. Eliminate worst forms of child labour, all forced labour

No speciﬁc SDG

StatusPerformance

Proposed Targets FY2021 & Beyond

Baseline survey conducted across Group, BU plans aligned with ﬁndings/ recommendationImplementation of programmes in line with baseline and key indicators and conduct impact study after three years

new target: Focus to align programmes with 2 key SDGs across group

1,302 Nand Ghars constructed

4,000 Nand Ghars to be constructed by FY2021

'Passion to serve'-employee volunteering online platform launched in August 2019

Intentionally left blank

'Nivaran' portal launched in March 2019

Timely redressal of grievance through uniﬁed portal across BUs

No targets. However, BUs follow Modern Slavery Act requirements to monitor suppliers and vendors for breaches of human rightsNo target, however, Vedanta is committed to FPIC & plans to undertake a Social Performance pilot in FY2021 new target: CSR advisory at Group level

INTEGRATED REPORTMANAGEMENT REVIEW

STATUTORY REPORTS

06-115116-167

Issues Emerging as 'High' PrioritySDG Alignment

PEOPLE AND DIVERSITY

FY2020 Targets

168-270

StatusPerformance

Ethical Business Practices	No speciﬁc SDG	Continue to focus on Code of Conduct (COC) training for all employees, including new hires	All our employees sign a copy of COC as part of their joining process acknowledging that they have gone through the Code of Conduct policy. In addition, we have a digitised COC training module, which every employee must go through, at the end of which they have to answer a short quiz to complete the training	Continue to focus on COC training for all employees, including new hires
Diversity & Equal Opportunity	SDG 5.5. Ensure full & equal participation of women in all decision-making in the political, economic, and public life	Achieve 33% female representation at Vedanta Board-level by FY2020	Currently, we have 25% diversity in our Group Management Committee and 20% in Vedanta Limited's Board. We have made signiﬁcant headway since last year where we have increased diversity in the Group	Achieve 33% female representation at Vedanta across all key decision-making bodies, including the Board, Management Committee and ExCo
SDG 5.9. Adopt and enforce policies and legislation on gender equality	Executive Committee from 5% to 17% and we continue to focus on achieving 33% diversity across the table
5% improvement in our campus female hiring programme to promote gender diversity	We have improved our on-campus recruiting diversity by 8.7% from 27.7% to 36.4%	Improve diversity across the organisation with focused 50% diverse hiring from campuses
Ensuring right lead-ership (ExCo) & succession for each business	ExCo structure being reviewed by respective business CEOs and HR heads, along with top management every month - Key focus is on delivery and business impact. Status on KPIs being tracked for the ExCo leaders through a structured Scorecard process on a quarterly basis	Ensuring right Manage-ment in Place with deﬁned deliverables in terms of Volume, Cost & EBITDA and succession for each business

271-502

Proposed Targets FY2021 & Beyond

ENVIRONMENTAL STEWARDSHIP

OPTIMISING

RESOURCES FOR A

SUSTAINABLE FUTURE

We are committed to reduce our environmental footprint through a systematic and process- oriented approach. This includes addressing legacy issues at sites that have previously had a negative impact on the environment, retroﬁtting older assets with new technology and ensuring new operations are as efﬁcient as possible by design. Additionally, all our operational sites are ISO 14001 certiﬁed.

Our Vedanta Sustainability Framework comprises policies, standards and guidance notes to manage environmental impacts. For the environmental priorities arising from the materiality process, we have developed speciﬁc objectives and targets, and review performance against these issues on a periodic basis.

ENERGY MANAGEMENT & CLIMATE CHANGE

As a large consumer of fossil-fuel based power, we recognise the climate-related risks associated with our business activities. We understand the implications of our energy consumption, both in terms of its cost to the natural environment as well as cost to the operations and are committed to meet our energy demands, while limiting our carbon emissions. We remain fully supportive of the outcomes of the Paris Agreement and have taken on carbon reduction targets in alignment with the Nationally Determined Contributions (NDC) of the Government of India.

GOVERNANCE STRUCTURE

Our Energy and Carbon Management Policy and Performance Standard commit our operations to adopt and maintain global best practices in carbon and energy management and minimise Greenhouse Gas (GHG) emissions.

The primary oversight of our carbon agenda rests with the Board's Sustainability Committee, which meets once every six months. The Committee also reviews progress on the sustainability targets, which include carbon-related goals. The operational oversight of the carbon agenda rests

with The Carbon Forum-a council chaired by the CEO of our power business and led by the Chief Operating Ofﬁcers of our businesses. The forum has been mandated with developing and overseeing the implementation of Vedanta's carbon mitigation approach.

During FY2020, the Company reconstituted the 'Carbon Forum' adding new members and refreshing its terms of reference.

Included in the Forum's work are discussions related to approving Vedanta's carbon management strategy, long-term (GHG) emissions intensity reduction targets, alignment with investor requirements, emerging regulatory risks and carbon pricing. The Forum also informs the Group ExCo, Risk Management Committee and the Board Sustainability Committee on ways to manage our carbon footprint. Executive compensation is linked to VSAP performance, which means management of our carbon footprint is also indirectly included in the compensation structure. We are in agreement with the recommendations made by the Task Force on Climate-related Financial Disclosures (TCFD). We are currently examining the best way forward on reﬁning our carbon management and disclosure practices to be in alignment with the same.

ClImATE-RElATED RIsks AnD OPPORTUNITIES

Vedanta's global presence exposes us to regulatory changes aimed at limiting or reducing GHG emissions. These changes could potentially impact our operations with increased costs for fossil fuels, levies for emissions in excess of certain permitted levels, and increased administrative costs for monitoring and reporting. Further, increasing regulation of GHG emissions, including the progressive introduction of carbon emissions trading mechanisms and tighter emission reduction targets, is likely to raise costs and reduce demand growth. However, as of now, we do not anticipate any regulatory risks in India after the withdrawal of the clean energy cess in 2017.

We also anticipate physical risks related to extreme weather events and changes in the availability of water due to climate change. We have conducted a water risk assessment to evaluate the risks at 25 of our locations. Sites located in high-risk areas that are vulnerable to changes in the availability of water have begun to implement measuresto reduce their dependency on local water sources by increasing water recycling rates and improving water use eﬃciencies.

We also anticipate a rise is the spread of vector-borne illnesses with rising temperatures. The COVID-19 pandemic has provided a glimpse of what such an outbreak could look like. We will incorporate the possibility and impact of such an event in our future risk planning - expanding on the Business Continuity Planning SOPs that have been prepared for the current COVID-19 crisis. In terms of climate-related business opportunities, we expect tobeneﬁt from an increase in demand for copper, zinc and silver, as the global renewable energy and electric vehicle industries expand.

We have not yet undertaken climate scenario planning and stress-testing of our projects based on internal carbon prices. There is an intention to introduce internal carbon prices in the next two years. Given the challenges related to Vedanta's diverse business operations, which have diﬀerent emission intensities, the Company is in the process of reviewing whether to apply carbon price at a group or operations level.

TARGETS & STRATEGIES

Vedanta's businesses range from mining operations (surface and underground), smelting and reﬁning units, hydrocarbon exploration, drilling and production, and product manufacturing to power generation.

A signiﬁcant portion of our operations are in regions where fossil-fuel based power forms the baseload of the energy grid. Additionally, due to the large and consistent requirement for power, many of our captive powerplants use coal-based thermal technologies. Given the nature and location of our businesses, switching to large-scale renewable energies has not been possible due to the current ﬁnancial and technical limitations of the technologies. As a result, much of our GHG emissions reduction programmes remain focused on improving the energy efﬁciency of our operations. We had aligned ourselves with the Nationally Determined Contributions (NDC)

of the Government of India and had committed to reduce our GHG emissions intensity by 16% by 2020 from a 2012 baseline.

In FY2020, we have reached the end-of-cycle for this target and achieved a reduction of 13.83%. This reduction is equivalent to ~9 million tCO2e in avoided emissions. While the ﬁnal number is lower than the target, it is indicative of the stretch goal that had been taken by us. We are currently in discussions internally to take the next set of mid- and long-term targets. We expect to be able to disclose these new targets by Q3FY21. We are deliberating if Science Based Targets (SBT) should be adopted for the entire group, or if each of our businesses should commit to their own SBTs. Our Zinc India business has already committed to SBTs and plans to reduce its Scope 1 and Scope 2 emissions by 14% by CY2026 from a CY2016 baseline. It has also committed to reduce its Scope 3 emissions by 20% by CY2026 from a CY2016 baseline.

ENVIRONMENTAL STEWARDSHIP CONTINUED...

PERFORMANCE

GHG Emissions (million tCO2e)

Scope 1 (direct)

51.7

Scope 2 (indirect)

3.5

1.2

1.4

Total

58.5

52.2

53.1

Energy Consumption (million GJ)

Direct

519

483.9

424.94

411.95

Indirect

62.59

14.34

9.07

Total

530

546.49

439.28

421.02

FY2020

WASTE & TAILINGS MANAGEMENT

Responsible management of waste is the cornerstone of any sustainable operation. The safe and responsible management of hazardous, non-hazardous, and high-volume low-toxicity wastes is a key concern for our businesses. At Vedanta, the hazardous wastes include used/ spent oil, waste refractories, spent pot lining and residual sludge from smelters, while the non-hazardous (high-volume, low-toxicity) wastes we generate include ﬂy ash (from captive and merchant power plants), red mud (aluminium reﬁnery waste), jaroﬁx (from zinc smelting), slag, lime grit (process residues from smelters and aluminium reﬁneries) and phosphogypsum (phosphoric acid plant).

The Resource Use and Waste Management Technical Standard and supporting guidance notes are part of the Vedanta Sustainability Framework. We follow the principle of ﬁrst reducing the waste, quantitatively as well as qualitatively (reducing the toxicity), and then performing the recovery and recycle (either ourselves or sold to authorised recyclers). The last priority is disposal in landﬁll or by incineration, using authorised, licensed and secured landﬁlls. In FY2020, we recycled 88% of the high- volume-low-eﬀect wastes such as ﬂy ash, slag, and jarosite. For the second year in a row, we could reutilise more than 100% of the ﬂy ash generated in the year, by recycling legacy waste.

FY2019

FY2018

FY2017

FY2019

FY2018

FY2017

high-Volume-low-Eﬀect waste (million MT)

Red Mud

The marginal rise in GHG emissions is primarily due to the inclusion of Electrosteels Steel Limited (ESL) data from FY2020 onwards. If we remove ESL from the dataset, there is a decline in GHG emissions by 3.6%. The decline for our GHG emissions and energy use is due to the marginal slowdown of activities in Q4 due to the lockdown measures initiated as part of our COVID-19 response.

We calculate and report GHG inventory i.e. Scope 1 (process emissions and other direct emissions) and Scope 2 (purchased electricity) as deﬁned under the World Business Council for Sustainable Development (WBCSD) and World Resource Institute (WRI) GHG Protocol.

GeneratedRecycled

105% 11.9211.30

6% 2.23

27% 0.57 0.15

116% 1.00

0.86

0.14

Jarosite

Slag

Fly Ash

TAILINGS DAM MANAGEMENT

Tailings dams and ash ponds are integral to Vedanta's mining operations. However, they can cause signiﬁcant damage to the environment and to the neighbouring communities if they are breached.

Vedanta oversees 18 active and 5 inactive, and 1 closed Tailings Management Facilities (TMFs). Our principle concern is to ensure the safety of the people who live downstream from our dams. All but one1 tailings facilities have undergone an independent audit and assessment in the last 12 months by Golder Associates. We have also introduced a tailings dam management standard to ensure that our Group companies adhere to standard practices while managing their dam structures.

WATER MANAGEMENT

Water is a shared resource. While access to a steady water supply is critical for mining and smelting operations, it is an equally critical requirement for our host communities and the natural ecosystem and biodiversity of the area. The shared nature of this resource calls for all stakeholders to use it responsibly and we have taken several measures to reduce its consumption of water.

Our Group water policy administered through our water management standard is in place and our approach is to keep it as a core factor whileCritical aspects of Vedanta's TMF standards:

• Site selection must be based on a comprehensive environmental and social impact assessment, including economic, public health and safety risk over the life cycle of the tailing facility as per Good International Industry Practice
• Dam break analysis must be conducted based on the advice of the designer/consultant to quantify the TMF-related risks if the TMF is located upstream or close to communities or in sensitive environmental areas
• Design must be based on best available technology, to minimise the environmental, social, and economic risks, at optimal total cost of ownership over the life cycle of the operation

In keeping with stakeholder expectations on transparency of our tailings dam facilities, Vedanta has responded to the Church of England disclosure requirements. Details of the disclosure can be found on our website:www.vedantalimited.commaking decisions, either for a new project or an existing one. Water-screening assessment to identify sensitive water resources, aquatic habitats and any known or suspected water resource constraints in proximity to each operation, is a must and has been conducted by all our businesses. It ensures that our operations have built-in measures to evade, curtail, or where required, compensate its eﬀect on water in their respective regions.

In the last year, we have collectively saved c.2.99 million m3 water through various conservation and eﬃciency programmes.

PERFORMANCE

Water Consumption & Recycling (million m3)

Total water consumption

255.10

243.44

241.66

241.56

Water recycled/reused

73.86

66.99

71.70

64.65

% Water recycled

28.95

27.52

29.67

26.76

Some examples of these eﬀorts include:

• Increasing cycles of concentration at Jharsuguda Thermal Power Plant
• Improvement of recycling rate of treated cooling tower blowdown at TSPL
• Improvement of recycling rate of raw and process waste water at Skorpion Zinc
• Reuse of Thermogravimetry (TG) condensate at HZL

1 Our facility at Skorpion Zinc underwent an audit in 2016.

FY2020

FY2019

FY2018

FY2017

ENVIRONMENTAL STEWARDSHIP CONTINUED...

AIR EMISSIONS

We closely monitor the extent of any impact that our operations have on air quality and the eﬀects and implications that this may have on employees, the communities local to our operations, and the broader environment. We are committed to using processes and technology that minimises any particulate release.

As part of our ambient air quality monitoring process, we monitor

Suspended Particulate Matter (SPM), SOx and NOx. We also keep in check lead emissions in our zinc operations, ﬂuoride emissions in our copper and

PERFORMANCE

Stack Emissions (in MT)

Particulate matter

9,603

8,862

8,414

9,296

SOx

255,685

242,234

189,823

174,340

NOx

66,526

67,278

56,749

44,935

FY2020

ALIGNING BUSINESS PRACTICES TO UN SUSTAINABLE DEVELOPMENT GOALS

goal: sDg 13 - Climate Action

Target:

13.2. Integrate climate change measures into strategies, polices, and planning

goal: sDg 12 - Responsible Consumption & Productiongoal: sDg 15 - life on land

Target:

12.5. Substantially reduce waste generation through prevention, reduction, recycling and reuse

aluminium operations, and Polycyclic Aromatic Hydrocarbons (PAHs) in our aluminium operations as per our Environmental Management Standard.

FY2019

FY2018

FY2017

Target:

15.1. Conserve, restore and sustainably use all terrestrial ecosystems

CAsE sTuDy 01:

A TuRnARounD AT ElECTRosTEEl sTEEls lImITED (Esl)

Vedanta has grown inorganically, through acquisition. A key to its success has been its ability to turnaround sick companies - not just economically, but also in how they manage sustainability. ESL is no exception to this practice. In the 21 months since Vedanta acquired ESL, there has been signiﬁcant work done to improve the environmental performance of the unit.

Increase in Fly Ash and Blast Furnace Slag Reutilisation

From reutilising only 10% of the generated ﬂy ash, ESL has been able to utilise 100% of the generated volumes. This has been achieved by establishing sales agreement for ﬂy ash with cement companies, where the by-product is used in several blended-cement applications. In FY2020, ESL transferred ~108,000 MT of ﬂy ash to the cement companies.

A similar success story has been achieved with Bblast furnace slag, where ESL has increased reutilisation levels from 30% to 100% of the generated waste. This too has happened by collaborating with cement manufactures.

Fly Ash Management and Land Reclamation

Low-lying areas within plant- boundaries are prone to ﬂooding and can thus disrupt operations. One such area has been reclaimed

by using nearly 300,000 MT of ﬂy ash.

The area was levelled, lined with clay at the bottom layer, before moving the ﬂy ash. laying in the plant premises for levelling. A layer of top-soil was then added and 50,000 saplings planted, thereby aiding in the biological reclamation of the land. This solution aided in reducing the risk of ﬂooding as well as the spread of ﬂy ash due to wind or water-related events.

Increase in Reutilisation Rates of ETP Treated Water

Less than 1000 KL of Eﬄuent Treatment Plant (ETP) water was reutilised in the plant every day. A project to identify losses and lay additional pipeline across the plant has seen the reutilization levels of the ETP treated water increased to 4,070 KL/day. The additional water is reutilised in the coke oven, blast furnace, sinter and lime, DIP, power plant, raw material handling and storage, sprinkling and greenbelt areas of the plant.

Waste Heat Recovery

Our non-recovery type coke oven releases coke oven gas during its operation, which are in the temperature range of 110500◦C-11500◦C. In normal course, this waste gas will be released to the atmosphere, contributing to our overall emissions and negatively impacting the atmosphere. However, in order to recover the waste heat, we drive this waste heat through two specially designed boilers, which generate steam to run the turbines in our captive power plant. A total of 259,255 MWh of power is generated annually from the Waste Heat Recover Boilers (WHRB). This action has allowed us to reduce our coal usage by ~82,000 MT and reduce our GHG emissions by ~69,000 tCO2e/year.

SDG Alignment

sDg 12: Responsible Consumption & Production, sDg 13: Climate Action sDg 15: Life on Land

CAsE sTuDy 02:

DRy TAIlIngs DIsposAl sysTEm - ZAwAR

Safe and sustainable management of our tailings facilities in central to our site management plan. Most tailings contain 50-65% water, forming a slurry. This introduces several risks to the tailings dam structure and the adjoining communities and environment.

The installation and commissioning of dry tailing plant at the Zawar operations of HZL, brings higher water recovery, near elimination of water losses through seepage and evaporation, virtual stoppage of any probability of groundwater contamination through seepage and signiﬁcant safety improvement, thus reducing the risk of a catastrophic dam failure. It is now possible to extract excess water (recirculation for mill operation) from tailings by introduction of this ﬁltration plants to transform solid fractions into cake containing only 16% moisture.

Key advantages of this structure include:

ƒ Recirculation of >90% of the process water
ƒ Elimination of the risks of catastrophic tailings ﬂow when a slurry dam (TSF) fails
ƒ Safe stacking of tailings cakes even in areas of high seismic activity

ƒ Reduction of risk of groundwater contamination through seepage

Reduction of storage footprint by 50% and enabling fast rehabilitation when approaching mine closure

SDG Alignment

sDg 12: Responsible Consumption & Production

BUSINESS MODEL

ENVIRONMENTAL STEWARDSHIP

EXPLORING A CIRCULAR

Current Linear

Every year the metals & mining industry produces ~174 billion MT of waste. Not only are these waste volumes great, but they often contain traces of heavy metals and chemicals. At best, these wastes result in large tracts of land being used to safely store them, and at worst, they can cause signiﬁcant harm to environment and society, in instances of run-oﬀ or a breach in the storage areas.

For many years, the industry has been evaluating solutions to minimize and reuse these wastes, however these have been imperfect, and often-times result in the generation of alternate waste-streams. It is estimated that nearly 40% of this waste can be recycled and converted into value-added-products.

In India, the unscientiﬁc disposal of hazardous waste has become a signiﬁcant environmental issue. One reason is the growing unavailability of secure landﬁll sites to safely store this waste.

At Vedanta, we follow the waste hierarchy principles of reduce, reuse, recycle and dispose/store responsibly. Given the large volumes of waste we generate, we are always on the lookout for technologies or partners who can help us convert this "waste to wealth". Enter Runaya Reﬁning and their technology-enabled sustainable solutions for mineral waste processing.

RunAyA - CREATIng CIRCulAR EConomy SOLUTIONS FOR THE METALS & MINING INDUSTRY

The world produces ~65 MMT of aluminium every year. Approximately 1.5% of the total quantity is lost in the form of aluminium dross - a by-product - that contains recoverable aluminium, aluminium nitrides and oxides, spinel, dimagnesium silicate, gupeiite, and sodium titanate. Aluminium dross is classiﬁed as a hazardous waste under the prevailing Indian Environmental regulations due to its potential environmental and health impacts. Current practice is to responsibly dispose this waste by sending it to State authorized recyclers/

Potential Circular

Economy

re-processors who process the waste as per approved guidelines by the Central Pollution Control Board. Recyclers attempt to recover aluminium from the dross, but because they handle cold dross, the recovery is limited to ~20% metal by weight from the dross.

The proprietary high-end technology used by Runaya breaks up the recovery process into two-stages - (i) Recovery from the hot dross, and (ii)

Recovery from the cold dross. The combined eﬀect is that one is able to recover ~40% of the metal by weight (or 90% of the metal present in the dross).

This is a signiﬁcant jump, resulting in improving the economic viability of the process. Also given that it is processing the dross in its melted state in stage 1, there is a signiﬁcant reduction in the energy requirements compared to other solutions in the market.

Additionally, in keeping with Vedanta's "Zero Waste" philosophy, Runaya, which has a technological tie-up with TAHA International S.A (Luxemburg), is able to take the non-metallic portions of the residual dross and process it to produce briquettes that can be used as slag conditioner in the steel industry.

The end result is that 100% of the dross can be reutilized - through metal recovery and the creation of a value-added-product. This eliminates the amount of waste sent to secure landﬁlls and is an environmentally safe way of utilizing a hazardous waste. It also decreases the dependence on the other raw materials used as slag conditioners in the steel industry - thereby living up to the ideals of circular manufacturing and circular economy.

RUNAYA'S PROCESS INOVATION

A PARTNERSHIP ON THE BRINK OF A REVOLUTION

A circular economy is one that is restorative by design, aiming to keep products and components and materials at their highest utility and value at all times.

The solution being oﬀered by Runaya is an example of what is possible for the aluminium industry and fulﬁlls our vision of "zero waste" by eliminating a hazardous waste-stream. Vedanta is excited to partner with them and usher in a revolution for the resources sector in more ways than one.

Runaya's process is a game-changer for the Aluminum sector. Not only does it have the potential to eliminate a hazardous waste-stream, but it converts that waste into value-added products. It is a sustainable solution in the truest sense - addressing environmental, economic, and social aspects.

SOCIAL FOCUS

EMPOWERING

COMMUNITIES FOR

INCLUSIVE GROWTH

Retaining the trust of our host communities is central to our ability to do business. In many instances, we are the primary economic driver where we operate. This places us in a unique position to signiﬁcantly impact the lives of local communities, whether as employers and business partners or through our community development interventions. We take this responsibility seriously and endeavour to fulﬁl our role in a manner that upholds the dignity of all our stakeholders and allows us to live up to our values.

The Vedanta Sustainability Framework and its associated standards and policies guide our work on social performance. In areas with indigenous populations, we are committed to following the principles of Free, Prior, Informed Consent (FPIC). With its genesis in the UN Declarations of Rights of Indigenous Peoples, it has been adopted as a best practice by the IFC and ICMM.

Our CSR Council, led by a senior business leader, and including CSR Heads and CSR Executives from all business units, meets every month and reviews the performance, spends and outcome of CSR programmes across units. Governed by our in-house CSR Policy and Sustainability Framework, the Council is responsible for governance, synergy and cross-learning across the Group CSR eﬀorts. The Board CSR Committee comprises senior Independent Directors; and apart from providing strategic direction for CSR activities, it also approves plans and budgets, and reviews progress of the initiatives.

PERFORMANCE & SOCIAL LICENCE TO OPERATE

Securing and retaining one's social licence to operate is an outcome resulting from a Company's ability to garner the trust of the communities where it operates. Social performance frameworks are a good mechanism to measure, manage, and monitor this aspect of the business.

In FY2020, we took the ﬁrst steps to developing a holistic approach to improving our social performance. Taking help from experts in thisﬁeld, Vedanta conducted a cross-BU review of the maturity of our businesses with respect to the social performance framework. Additionally, perception surveys were also conducted at our key locations to understand the viewpoints of our local stakeholders. Learnings from both these exercises are being studied and in FY2021, we will be conducting a year-long social performance pilot programme at two of our operational sites to evolve our social performance approach.

COMMUNITY DEVELOPMENT PROGRAMMES

Vedanta has one of the most extensive community development programmes in the country.

During FY2020, we spent ₹296 crores to help communities enhance their quality of life through various interventions. An overview of these programmes is given below.

ChIlDREn's wEll-BEIng AnD EDuCATIon

Learning is enjoyable at Nand Ghar

Key Features

Nearly 1.9 million people beneﬁt from these programs

More	35	initiatives across our
than	Group companies

Types of Interventions

Support to Primary Health Centres; HIV/AIDS awareness programmes; Health camps; Mobile Health Vans; Specialist doctor support; Nutrition programmes; Vedanta-run hospitals; Health awareness drives

Training Youth to build a better future

Key Features

Nearly

300,000

children beneﬁt from these programmes

More	50	initiatives across our
than	Group companies

Types of Interventions

Anganwadis and child-care centres; Public school infrastructure support (including sanitation); Scholarships and Teacher training; Digital classrooms & Computer-aided learning centres; Libraries; Vedanta-run Schools; Exam preparation counselling; Career counselling Science Fairs

SOCIAL FOCUS CONTINUED...

DRINKING WATER & SANITATIONWOMEN'S EMPOWERMENT

Self-Help Groups (SHG); Women's co-operatives; Micro-enterprises

Types of Interventions

SKILLING YOUTH

Tube-wells/Open-wells/Borewells; Check-dams; Roads; Parks; Public education infrastructure; Community centres; Health centres; Village walls & gates; Renovation of sports complexes; Temples Irrigation channels; Drains; Bus stands; Street lights; Ponds; Public CCTV installations

Types of Interventions

Provision of drinking water; Construction of toilets; RO plant setup; Digging of borewells; Handpump repair/installation; Sanitation drives

Types of Interventions

Sewing centres; Vocational training centres; Technical & computer literacy programmes; Traditional crafts and painting training

AGRICULTURE & ANIMAL HUSBANDRY

Key Features

More	12 initiatives across our
than	Group companies
More	90,000
than

farmers beneﬁted

Types of Interventions

Climate-change adaptation; Wadi-based agriculture; Water-shed rejuvenation; Agriculture-based natural resource management; Dairy and livestock development; Farmer training; SHGs; Co-operatives; Veterinary care; Irrigation channel maintenance

COMMUNITY INFRASTRUCTURE

Types of Interventions

SPORTS & CULTURE

Types of Interventions

Rural sports; Sponsorship for para-athletes; Marathons; Sports tournaments; Music festivals; Football and archery training academies

ENVIRONMENTAL RESTORATION & PROTECTION

CAsE sTuDy 01:

NANDGHAR

Our ﬂagship Nand Ghar programme, which has seen phenomenal growth and success since its inception, is a child and maternal health initiative designed to support the Government of India's Child Development Services (ICDS). At Nand Ghar, the traditional Anganwadi or rural childcare centre is reimagined as a state-of-the-art mother and child community hub, that provides crucial aid in the early stages of child's growth, and oﬀers women with a platform to learn new skills.

Our ambitious venture equips the Nand Ghars with rooftop solar

panels for 24x7 electricity supply, water puriﬁers and clean lavatories, while addressing the nutritional and education needs of young children. With their hands free during the Nand Ghar hours, the mothers are given the opportunity to get trained in special skills that could aid in their economic upliftment.

This has directly impacted over 44,000 children beneﬁting from the pre-school programme, while over 29,000 of them enjoy nutritious meals daily. Powering on, we intend to open as many as 4,000 Nand Ghars throughout the country which,alongside our Khushi initiative, will impact millions of children and women.

During FY2020, we operationalised our 1,302nd Nand Ghar - which can now be found across Rajasthan, Uttar Pradesh, Odisha, Jharkhand, Chattisgarh, Madhya Pradesh, and Karnataka.

SDG Alignment goal: sDg 2- Zero Hunger

Target: 2.1. End hunger and ensure access to safe, nutritious, and suﬃcient food, all year round

FATEH SAGAR LAKE DEEPENING PROJECT AT UDAIPUR

HZL has spearheaded signiﬁcant work on water preservation, considering that its operations are located in the water stressed state of Rajasthan. In addition to the work done to reduce the dependence of its operating sites on local water bodies, HZL has also instituted water management projects in its local communities.

SOCIAL DEVELOPMENT CONTINUED...

CAsE sTuDy 02:

BEyonD ThE FEnCE - ponD DEEpEnIng pRojECT

Vedanta, in association with the Urban Development Trust (UIT) of Udaipur has taken up the Fateh Sagar Lake deepening initiative, by desilting the lake during dry periods.

The desilting process has deepened the lake by increasing the catchment area and allowing trapping of more water in the rainy season, helping preserve water longer in those years with weak monsoons.

This project aims at improvement of lake biodiversity and creates a safe place for migratory birds.

SDG Alignment

goal: sDg 6- Clean Water and Sanitation

Target: 6.6. Protect and restore water-related eco-systems

Groundwater Recharge Study, Bhilwara

CAsE sTuDy 03:

ENHANCING LIVELIHOODS IN COMMUNITIES

Livelihood programmes are central to the community development activities undertaken by Vedanta. As the largest private entity in many of the areas where we operate, community members look towards our organisation to improve their economic circumstances.

Where possible we have tried to integrate community members into our workforce or into our supplier network. For others, we have established robust, tested, livelihood programmes to help individuals gain new skills, allowing them to add new or enhanced sources of income.

Some success stories are given below:

The agriculture support programme managed by the BALCO CSR team provides soil testing, fencing infrastructure, fertiliser and seed-based input support, and technical training programmes. This intervention has motivated several farmers to adopt modern farming techniques such as System of Rice Intensiﬁcation (SRI), which has doubled yields and enhanced incomes. Many farmers have also diversiﬁed their crops, further enhancing family incomes.

Self-Help Groups (SHGs) are another way to empower women and enhance family incomes. Build on the community-loan model, SHGs help women entrepreneurs start their own micro-enterprises - either individually or in a group. Women who have participated in these programmes have started tailoring units, farms, toy making, among other endeavours. These activities have not only supplemented their household incomes, but also empowered them to become independent members of society.

A third model involves the setting up of technical training centres, which teach individuals the skills to become part of the modern workforce. From call centre training provided by Cairn to the vocational training programmes such as plumbing, electrician, machine operators, among others - these programmes have allowed individuals to becoming primary wage earners for their families. HZL's skill development programmes have a wide range of options to cater to each segment of youth from those who have attended secondaryschooling to graduates, ITI & diploma-holders. Training partnerships with automobile companies such as Maruti Suzuki have provided participants with a two-year ITI degree, along with a stipend.

SDG Alignment

goal: sDg 8 - Economic Growth & Decent Work for All

Target: 8.6 Reduce youth unemployment, illiteracy, unproductivity

Employees at integrated facility, Jharsuguda

SAFETY

COMMITTED TO

EMPLOYEE SAFETY

AND WELLBEING

It is a matter of extreme regret that we lost seven colleagues in work-related accidents during the year. We share the pain of their loved ones and are conveying our deepest condolences to them. Their loss is a hard reminder for us to continuously work to strengthen and improve our safety management systems.

At the beginning of FY2020, we observed an increasing trend in safety incidents, leading to fatalities within our workforce, over the past three years. This was a matter of grave concern, because within the same period, we had invested heavily in several systems and standards, which were introduced to ensure a safe,injury-free workplace.

To understand the rationale behind this anomaly, the Group ExCo along with our Group HSE teams went on to analyse the situation and developed a way forward.

The team determined that while the existing controls are important and development and monitoring of these needs to continue, given the nature of the safety incidents (70% repeats, >90% impacting our business partners) the following three areas required management attention:

Visible Felt Leadership

Where the expectation for leaders and support personnel is to spend quality time in the ﬁeld performing safety interactions, workplace hazard reviews, along with making proactive & hands-on safety interventions

Manage Safety Critical Tasks

Where the expectation is that safety critical tasks are identiﬁed, critical competencies and controls documented in SOPs and the task leader veriﬁes these are in place every time

Business Partner Engagement

Where the expectation is that long-term business partners are treated as employees for safety purposes and

Ensuring safety is a top priority

short-term/project-speciﬁc business partners are managed via deployment of suitable supervisors

These management areas have been taken up to bring signiﬁcant and lasting change in the manner we manage safety.

While the ﬁnal outcomes will be visible over a multi-year timeframe, key improvements include:

• A plateauing of our fatality count
• Signiﬁcant rise in the amount of time business leaders are spending on the shop-ﬂoor, making safety interventions. SOPs and training manuals have been created for these individuals so that their interventions are found to be eﬀective
• A review by businesses of their safety critical tasks followed by an update of their risk documents as well as permit-to-work process ﬂows
• A review of our business partner pre-qualiﬁcation and onboarding processes and the establishment of a committee to aid our business partners enhance their safety systems, with a focus on those vendors who do heavy maintenance and construction activities at our facilities
• The development of a right-to- refuse campaign, to educate our workforce on their right to refuse or stop unsafe work. The campaign will be launched in Q1FY21
• Improved reporting of all safety incidents, which are recorded, investigated and actions developed to prevent re-occurrences

In addition, several businesses have also taken on additional work to benchmark themselves and adopt best practices from some of the leading global safety frameworks.

Speciﬁcally, they have engaged with the British Safety Council (BSC) to conduct audits and follow-up capacity building programmes.

All the major locations of our Oil & Gas business have received a 5-star rating from the British Safety Council. Similarly, a majority of our businesses have undertaken and achieved 5S certiﬁcation, thereby signiﬁcantly improving housekeeping practices and fulﬁlling our FY2019 goal of achieving >90% score in 5S.

This improvement, will decrease the safety incidents from occurring.

An overview of our safety performance is given below:

Fatalities 9

FY 16

FY 17

FY 18

FY 19

FY 20

SAFETY CONTINUED...

CAsE sTuDy 01:

SURVEILLANCE TEAMS TO ENSURE SAFE WORK CONDITIONS AT NIGHT

BALCO's Senior Management has vouched for safety and integrity as their prime focus. They strive to ensure a conducive and safe working environment and have undertaken several programmes to demonstrate Visible Felt Leadership.

In order to improve the eﬃciency and eﬀectiveness of the plant at night, the management implemented the Night Surveillance Initiative. The Night Surveillance team promotes smooth ﬂow of operations inside the plant through regulation-based, proactive safety oversight system. The team comprises three executiveswith one member from the senior/ middle management supported by an executive each from safety and security teams. The primary function of the team is to visit the SBUs (Metal, Power and Enabling) to identify unsafe operational practices, violation of cardinal rules, zero tolerance rules, violation of standing order provisions and any other applicable guidelines laid down under the Code of Business Conduct. Over 150 employees are involved in this process, conducting cross-functional audits and have helped highlight several best practices. The initiative is supported by an online platform

providing immediate learnings and course corrections. This initiative has provided BALCO an additional platform to spread the awareness on safety and demonstrated the commitment of the senior leadership team towards HSE & the wellbeing of the workforce.

SDG Alignment

goal: sDg 8- Economic Growth & Decent Work for All

Target: 8.8 Protect labor rights and provide safe work conditions for all

CAsE sTuDy 02:

SAFETY BOOSTER PROGRAM

Unsafe work conditions are often a result of consistent, long-term unsafe habits by employees on the shop ﬂoor. Left unchecked, these behaviours can have a negative impact on the safety culture of the site and result in injuries or fatalities.

To prevent such behaviours from spreading unchecked, the Jharsuguda plant has adopted a 'safety booster' programme for those employees (Vedanta & business partners) who exhibit borderline unsafe behaviour.

These employees are identiﬁed by the plant head in consultation with the HODs and safety teams if they exhibit the following behaviours over a period of time: ƒ Higher count of safety notices for areas under their supervision

ƒ Not conducting Visible Felt Leadership/Behaviour Based Safety/Making Better Risk Decisions (MBRD) interactions/inspections
ƒ Repeated road safety violations
ƒ Risk taking behaviours while performing jobs, a repetition of violations, or an unwillingness to perform safe work practices
ƒ Lower safety compliance in their area
ƒ People working in isolation or isolated areas
ƒ PPE violations

Once identiﬁed, these employees are provided counselling sessions, safety training, and a review of their performance after six months. The training programme covers the following topics: life-saving rules,safety standards, permit to work system, behaviour-based safety, zero harm culture, safety inspections and interactions, Hazard Identiﬁcation and Risk Assessment, and safety legal requirements.

This approach has allowed several employees to self-correct once back on the shop ﬂoor and has improved the overall safety culture of the plant.

SDG Alignment

goal: sDg 8- Economic Growth & Decent Work for All

Target: 8.8 Protect labor rights and provide safe work conditions for all

CARE

Vedanta has always aspired to build a culture that demonstrates world-class standards in safety, environment and sustainability. People are our most valuable asset and we are committed to providing all our employees with a safe and healthy work environment.

Our culture exempliﬁes our core values and nurtures innovation, creativity and diversity.

We align our business goals with individual goals and enable our employees to grow on a personal as well as professional front.

TRUST

We actively foster a culture of transparency in our interactions and encourage an open dialogue which ensures mutual trust and respect.

We are committed to our triple bottom line of 'People, Planet and Prosperity' to create a sustainable future in a 'zero-harm, zero waste and zero discharge' environment for our communities.

INTEGRITY

We engage ethically and transparently with all our stakeholders, taking accountability for our actions. We maintain the highest standards of professionalism and stringently comply with all international policies and procedures.

INNOVATION

We encourage innovation that leads to zero harm, zero waste and zero discharge, and we are committed to optimising the use of our natural resources, improving eﬃciencies and maximising recoveries of by-products.

ENTREPRENEURSHIP	RESPECT
People are at the heart	We place an emphasis	Our primary focus is on
of everything we do.	on human rights and	delivering performance of
We create an enabling	respect the principle	the highest standard. We
environment to support	of free, prior, informed	are constantly looking at
them in pursuing	consent, while our	ways to reduce costs and
their goals.	engagements with	increase production in
stakeholders give	our businesses through
local communities the	benchmarking best
opportunity to voice their	practices and employee
opinions and concerns.	participation.

EXCELLENCE

The whole working of Vedanta is based on these seven pillars. It is a continuous process of aligning all our methodologies and way of life to these pillars.

is being centrally mentored by our high-performing senior leaders to fast track their career growth into future CXOs.

PEOPLE AND CULTURE CONTINUED...

DIGITALISATION INITIATIVES

Standing ﬁrm on the 'Digitalisation, Innovation, Technology & Excellence' pillar of Vedanta, various initiatives were introduced on the people front to enhance process eﬃciency and maintain a competitive edge.

V-Accelerate

An end-to end online Internal Job Posting (IJP) portal was launched in FY2020 which was developed inhouse. The portal will add a great value to increase transparency and signiﬁcantly reduce lead time in internal movements for ﬁlling up vacancies across the Group with internal talent.

RECRUITMENT

MIP Dashboard

As part of our digitalisation initiatives, we developed the MIP Dashboard which provides a complete view of the ExCo structure at Group Level, ensuring that we have visibility of all leaders at the click of a button.

Campus Analytics Dashboard

We partnered with a reputed analytics ﬁrm to analyse and derive insights from our experiences with various college campuses and campus recruits over the years. As a result, we now have an exhaustive dashboard which provides key insights for shaping up our campus hiring strategy and onboarding and anchoring young talent.

Our recruitment programme includes a wide range of initiatives to support us in hiring skilled professionals across diﬀerent functions and businesses.

Right Management in Place (RMIP)

To re-emphasise the Group's philosophy of empowering the SBUs, we have reviewed our existing businesses and SBU structures, and followed a rigorous assessment process to ensure we engage the right talent in the right role. The RMIP process also ensures that we have ﬁlled all the critical roles within our structures and any gaps in the management team are supported by strategic plans to ﬁll vacancies. Our approach to recruitment is focused on hiring diverse, high-quality talent. We operate our businesses with global best practices and are benchmarked to global standards. Therefore, wherever needed, we also hire expats and specialists with world-class expertise and experience to manage such operations.

Vedanta Leadership Development Programme (VLDP)

VLDP is our ﬂagship programme which aims to build organisational capability by developing talented individuals from premier management and technology institutes. It is a tailored programme which focuses on nurturing bright young minds to act as catalysts to steer our business to the next level of growth by implementing transformational new-age ideas. The programme includes induction sessions and cross-functional projects in signiﬁcant roles, job rotation, development opportunities, and continuous anchoring to ensure that these individuals get an in-depth knowledge of our operations and recognise their areas of interest for a suitable role.

Diversity Hiring Project

At Vedanta, we see ourselves as an engine of inclusive growth that operates at scale, and ushers in prosperity for a large section of the society. In line with our vision to achieve 33% diversity across the group, we have launched a project to bring onboard diversity leaders across Technical, Operations and Enabling functions which will help us strengthen representation of women leaders in business and SBU ExCo. Through this project, we are looking at hiring ~30-40 women professionals across our various businesses and locations. In the last one year, we made signiﬁcant progress in increasing the diversity representation in Group ExCo from 5% to 21%.

Leadership Performance Scorecard

TALENT MANAGEMENT AND DEVELOPMENT

We take great pride in our performance-driven culture where every individual is motivated to contribute to the best of his/ her potential. It is with this focus that we launched the 'Leadership Performance Scorecard', an initiative which aims to drive accountability and performance for our senior leaders aligned to their respective business, function, role and with the overall objectives of the organisation.

Top 50 Young Talent Anchoring Programme

At Vedanta, identifying and grooming business leaders for tomorrow and providing them with business exposure (in terms of higher responsibility, better visibility, diﬀerentiated rewards, focused guidance and support structure to perform) have formed a key part of our people agenda. In line with this, we launched the Top 50 Young Talent Anchoring Programme, where we have identiﬁed 50 young and high- potential candidates with digital and analytical mindset from our pool of 350+ VLDPs, Management Trainees & Chartered Accountants. These candidates have joined us

V-Reach: graduate Development Programme

At Vedanta, we have a strong and unwavering focus on identifying and developing internal talent from within. We have a 5,000+ strong talent pool who joined us asThe performance scorecard covers ~570 senior leaders, diversity leaders and advisors across the Group and provides a quarterly scorecard on- the-basis of goals and achievements for rewards and development. The entire exercise is being executed in a very objective and transparent manner, aimed at recognising and further growing our top performing leaders, assisting those facing challenges and addressing any performance issues.

from campuses in the last two years, for anchoring directly by the senior leaders of the Group. This young talentgraduates, who form the backbone of our businesses. To identify top 100 talent from this graduate talent pool and provide them elevated roles and opportunities, we launched V-Reach, which will fast track their career growth within the Group. The projectwill be carried out in two steps. First ~300 potential leaders will be identiﬁed via desktop analysis based on objective parameters. Next, all the selected candidates will go through a structured Chairman's Workshop to identify the Top 100 leaders.

Employee Stock Option Scheme 2019-20

PEOPLE AND CULTURE CONTINUED...

PERFORMANCE MANAGEMENT & TOTAL REWARDS

V-perform: one performance system for One Vedanta

Our focus is to constantly improve the level of automation in all our operations. V-Perform is a pan-Vedanta initiative to standardise the Performance Management System (PMS) and process across all Vedanta Group companies by leveraging technology. This enables functions, teams and individuals to track performance on a regular basis, evaluate eﬃciency through

360-degree Feedback

At Vedanta, we promote growth and nurturing of our internal talent pool by encouraging internal dialogue between senior leaders and their young mentees and peers. Towards this, we have launched a 360-degree Feedback for our ExCo Leaders in collaboration with an external partner. We believe that this will help to fast track assessment and development of leaders and we aim to extend this to cover all our professionals in due course.

advanced analytics and implement proactive decisions towards achieving Vedanta's objectives. We foster a culture of safety and sustainability to achieve our ultimate vision of 'Zero Harm, Zero Waste & Zero Discharge'. To enhance our safety performance in the workplace and strengthen our existing Safety Management System, a safety competency assessment process was completed mid-year by all employees.

Employee stock options is a conditional share plan for rewarding performance on pre-determined performance criteria and continued employment with the Company. It provides a much better line-of-sight to all employees. On 29 November 2019, Nomination and Renumeration Committee approved the grant of Employee Stock Options 2019 to Vedanta employees covering 35% of eligible population.

In order to align the scheme with best-in-class reward practices globally, the ESOS 2019 Plan has undergone signiﬁcant transformation.

The grant under the ESOS 2019 is completely driven by performance and is a combination of individual contribution and business/SBUperformance. Although the plan continues to be linked to Vedanta for its relative total shareholder returns performance, but since business delivery is of prime importance for the organisation today, the internal parameters of volume, cost, Net smelter return and EBITDA, as applicable to respective business and SBU have been introduced as additional performance parameters with enhanced weightage. The vesting of such options will also be a factor of sustained individual performance subject to continued employment with the Group.

Through this change, we not only ensure to protect the shareholder interests but also enable a better control of the outcome of the plan in the hands of the employee.

IDENTIFYING AND KEEP NURTURING HOMEGROWN LEADERS

In the global context, nowadays most CEOs cite an inadequate pool of leadership talent as a business threat and yet many organisations don't move fast enough to address this. While companies expect talent to have growth, positive mindset, manage complexity, be agile, innovate, integrate, collaborate and empower, the talent itself expects continuous learning, exciting challenges, diverse and inclusive work environment, ﬂexible career paths and ongoing feedback, to grow.

During 2015, Vedanta was at such a cross-road to build a pipeline of 'leaders of tomorrow' and under the leadership of the Chairman took the opportunity to initiate what was to become one of the largest and most successful internalleadership growth programmes in the industry. 'Leadership from within' has been our cardinal philosophy as we grow and in line with this we designed the 'Chairman's Internal Growth Workshop Program' to identify 'hidden gems' across the businesses basis 3 Ps - Personal Background (Education, Age, Experience, etc.); Performance (Last three year performance, Star of the Business, etc.); Potential (Identiﬁed by a comprehensive assessment mechanism).

Through this robust exercise, we have identiﬁed a bench strength of 600+ new leaders who have been entrusted with elevated/enhanced roles across business and functions. Meeting growth aspirations of the employees and ensuring internalmobility of high-quality talent has been the highlight of this endeavour. The new leaders have been empowered through various key strategic initiatives across the Group and regular feedback sessions, which have ensured they are in the right track of adding business value.

We also recently engaged an outsourced partner to conduct an independent study to gather objective feedback about the programme eﬀectiveness. The study revealed a resounding positive feedback from across stakeholder segments (over 85% satisfaction level - in terms of role satisfaction & recognition, leadership visibility, right guidance etc.) thus re-enforcing its impact across the organisation.

Employees in Underground Mine at the Rajpura Dariba Mine

REPORT MAPPING

BUSINESS RESPONSIBILITY

This segment maps the Integrated Report (IR) for FY2020 with Securities and Exchange Board of India's Business Responsibility Report (SEBI BRR) framework.

Vedanta Aluminum Employees

INTEGRATED REPORTMANAGEMENT REVIEW

STATUTORY REPORTS

06-115116-167

168-270

BRR Section

sECTIon A: gEnERAl DIsClosuREs

BRR Framework

Our Approach to Reporting	Page 3
General Information about the Company	A1, A2, A3, A4, A5, A7, A8, A9, A10	Annexure C Page 207 The information in this section is representative of the division companies of Vedanta Limited only
Financial Year Reported	A6	2019-20

sECTIon B: FInAnCIAl DETAIls oF ThE CompAny

Paid up Capital (₹)	B1	Page 185
Total Turnover (₹)	B2	Page 283
Total Proﬁt After Taxes (₹)	B3	Page 283
Total spending on corporate social responsibility (CSR) (₹)	B4	Page 193
List of activities in which expenditure in B4 above has been incurred.	B5	Community Development Activities (Page 194-200)

sECTIon C: oThER DETAIls

Does the Company have any Subsidiary Company/Companies?	C1	Yes
Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent Company? If yes, then indicate the number of such subsidiary Company(s)	C2	Yes. Vedanta Ltd. has 8 subsidiaries - HZL, BALCO, MEL, Cairn India, Western Clusters, Zinc International and Copper Mines of Tasmania (CMT)
Do any other entity/entities (e.g. suppliers, distributors, etc.) that the Company does business with participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity/ entities. [Less than 30%, 30-60%, More than 60%]	C3	Our suppliers are not directly involved with the 'Responsible Business' initiatives. However, our contracts address areas like HSE, Ethics, and Human Rights that our suppliers are obliged to adhere to strictly

section D: BR Information

Details of Director/Directors responsible for BR

271-502

Section/Page Number in Integrated Report

Page 192

Employees, part of Vedanta Aluminum business

BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...

2. Principle-wise (as per National Voluntary Guidelines (NVGs) BR Policy/policies (Reply in Y/N)

QUESTIONS

Indicate the link for the policy to be viewed online?

Do you have a policy/policies for:	Y	N	Y	Y	Y	Y	Y	Y	Y
Has the policy been formulated in consultation with the relevant stakeholders?	Y	NA	Y	Y	Y	Y	Y	Y	Y
Does the policy conform to any national/ international standards? If yes, specify. (50 words)	Y	NA	Y	Y	Y	Y	Y	Y	Y
Has the policy been approved by the Board?	Y	NA	Y	Y	Y	Y	Y	Y	Y
Has it been signed by MD/Owner/CEO/	Y	NA	Y	Y	Y	Y	Y	Y	Y
Appropriate Board Director?	Y	NA	Y	Y	Y	Y	Y	Y	Y
Does the Company have a speciﬁed committee of the Board/Director/Oﬃcial to oversee the implementation of the policy?	Y	NA	Y	Y	Y	Y	Y	Y	Y

https://www.vedantalimited.com/Pages/CorporateGovernance. aspx?type=inv

Has the Company carried out independent audit/ evaluation of the working of this policy by an internal or external agency?

Has the policy been formally communicated to all relevant internal and external stakeholders?	Y	NA	Y	Y	Y	Y	Y	Y	Y
Does the Company have in-house structure to implement the policy/policies?	Y	NA	Y	Y	Y	Y	Y	Y	Y
Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders' grievances related to the policy/policies?	Y	NA	Y	Y	Y	Y	Y	Y	Y

Each year, the Company undertakes an audit exercise, conducted by an external agency to evaluate the workings of these policies. This audit is known as the Vedanta Sustainability Assurance Protocol (VSAP) audit. The VSAP audit is conducted across all of our signiﬁcant sites.

NA = Not Applicable

INTEGRATED REPORTMANAGEMENT REVIEW

STATUTORY REPORTS

06-115116-167

168-270

BRR Section

3. GOVERNANCE RELATED TO BRBRR Framework

Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance of the Company. Within 3 months, 3-6 months, Annually, More than 1 year

Sustainability and ESG (Page 66-68)

Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report?

How frequently it is published?

Sustainability and BRR performance is detailed in the Vedanta Ltd. Annual Report. We also publish an annual Sustainability Report based on GRI Standards.

Our sustainability reports can be found at:http://www.vedantalimited.com

sECTIon E - pRInCIplE-wIsE DIsClosuREs

Principle 1 - Conduct, Governance, Ethics, Transparency and Accountability

Does the policy relating to ethics, bribery and corruption cover only the Company? Yes/No. Does it extend to the Group/Joint Ventures/Suppliers/ Contractors/NGOs /Others?

P1-1

No. The Business Code of Conduct and Ethics applies to all directors, oﬃcers and employees of the Company and its subsidiaries.

Page 190

How many stakeholder complaints have been received in the past ﬁnancial year and what percent was satisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so

P2-1

Standalone numbers:

Open complaints at 1st Apr19: 3

Number of whistle-blower cases opened: 29 Number of whistle-blower cases upheld and found correct in 2019-20: 10

Number of whistle-blower cases closed in 2019-20: 31

Principle 2 - Safety and Optimal Resource Utilisation across Product Lifecycle

List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or opportunities.	P2-1	HZL Case Study; Page 83
For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per unit of product(optional):	P2-2	Optimising resources and managing environmental sustainability; Page 78-85
Does the Company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage of your inputs was sourced sustainably? Also, provide details thereof in 50 words or so	P2-3	Optimising resources and managing environmental sustainability; Page 78-85
Has the Company taken any steps to procure goods and services from local & small producers, including communities surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local and small vendors?	P2-4	In view of retaining quality, the Company sources its major inputs from OEMs and large national and international manufacturers. Goods and services are procured by businesses locally is of consumable nature where feasible
Does the Company have a mechanism to recycle products and waste? If yes, what is the percentage of recycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so	P2-5	Optimising resources and managing environmental sustainability; Page 78-85

271-502

Section/Page Number in Integrated Report

BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...

BRR Section

principle 3: Employee well-being

Please indicate the total number of employees

Please indicate the total number of employees hired on temporary/contractual/casual basis

Please indicate the number of permanent women employees

Please indicate the number of permanent employees with disabilities

Do you have an employee association that is recognised by management?

What percentage of your permanent employees are members of this recognised employee association?

Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the last ﬁnancial year and pending, as on the end of the ﬁnancial year

What number of your under mentioned employees were given safety & skill upgradation training in the last year?

principle 4: Engaging stakeholders - sustaining Value

Has the Company mapped its internal and external stakeholders? Yes/No	P4-1	Our key stakeholders; Page 72
Out of the above, has the Company identiﬁed the disadvantaged, vulnerable & marginalised stakeholders	P4-2	Yes
Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalised stakeholders. If so, provide details thereof in 50 words or so	P4-3	Empowering communities and enabling prosperity; Page 86-93

BRR FrameworkSection/Page Number in Integrated Report

P3-1

P3-2

9,220 Full-time Employees 29,658

P3-3

1,156 Full-time female employees

P3-4

P3-5

P3-6

Not tracked

P3-7

Yes

P3-8

We have recognised employee association at Sesa Iron business only. 74%, the employees are a part of association

Child labour/forced labour/involuntary labour - Nil

Sexual harassment cases -8*; All cases are closed

*Represents consolidated number

The total safety and skills upgradation training given to employees, contract workers and third-party visitors is given as below:

• Employees: 232,253 hours
• Contract employees: 628,434 hours
• Third party: 123,242 hours

principle 6: nurturing the Environment

Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/ Suppliers/Contractors/NGOs/others

Does the Company have strategies/initiatives to address global environmental issues such as climate change, global warming, etc? Y/N. If yes, please give hyperlink for webpage etc

Does the Company identify and assess potential environmental risks? Y/N

Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about 50 words or so. Also, if Yes, whether any environmental compliance report is ﬁled?

Has the Company undertaken any other initiatives on - clean technology, energy eﬃciency, renewable energy, etc. Y/N. If yes, please give hyperlink for web page etc

Are the emissions/waste generated by the Company within the permissible limits given by Central/ State Pollution Control Board for the ﬁnancial year being reported?

Number of show cause/legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on end of Financial Year

BRR Framework

Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/Suppliers/Contractors/NGOs/Others	P5-1	Yes
How many stakeholder complaints have been received in the past ﬁnancial year and what percent was satisfactorily resolved by the management?	P5-2	No complaints with respect to Human Rights were reported

Section/Page Number in Integrated Report

P6-1

Yes

P6-2

Yes. Energy Management & Climate Change; Page 78-80

P6-3

Yes

P6-4

P6-5

Yes. Energy Management & Climate Change; Page 78-80

P6-6

Yes

P6-7

BUSINESS RESPONSIBILITY REPORT MAPPING CONTINUED...

BRR Section

principle 7: Responsible policy Advocacy

Is the Company a member of any trade and chamber or association? If Yes, Name only those major ones that your business deals with	P7-1	Our business and subsidiary companies are members of trade and industry bodies like the Federation of Indian Mining Industries, Confederation of Indian Industries, Indian Institute of Metal, Federation of Indian Chambers of Commerce & Industry and The Energy Resources Institute, India, where they actively participate in their Management Committees
Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No; if yes specify the broad areas (Governance and Administration, Economic Reforms, Inclusive Development Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)	P7-2	We are working to directly and indirectly support government authorities to catalyse sustainable development of the metals & mining sector. For example, in recent years, we have worked with the national authorities on various campaigns like 'Make In India', Resumption of Mining in Goa, Reduction of Iron Ore and Export duty among others

principle 8: support Inclusive Development

Does the Company have speciﬁed programmes/ initiatives/projects in pursuit of the policy related to Principle 8? If yes details thereof

Are the programmes/projects undertaken through in-house team/own foundation/external NGO/ government structures/any other organisation?

Have you done any impact assessment of your initiative?

What is the Company's direct contribution to community development projects- Amount in INR and the details of the projects undertaken

Have you taken steps to ensure that this community development initiative is successfully adopted by the community? Please explain in 50 words or so

BRR Framework

P8-1

P8-2

P8-3

P8-4

P8-5

The dairy cooperatives are procuring close to 15,500 litres of milk daily

Section/Page Number in Integrated Report

Community Development Programmes; Page 87-93

We implement our programmes through all the following modes - directly through our Corporate Social Responsibility team and in partnership with government and civil society organisations. We also actively encourage our own employees to contribute towards these social initiatives

Yes; See Stakeholder Engagement table on Page 73

Annexure A; Page 192

Most of our programmes evolve from a thorough assessment of community requirements and are delivered in close partnership with them. Several of our initiatives, such as women's self-help groups, are now completely run and managed by the community members themselves. Our role is primarily that of a catalyst in the whole process

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BRR Section

principle 9: providing Customer Value

BRR Framework

What percentage of customer complaints/ consumer cases are pending as on the end of the ﬁnancial year.	P9-1	Nil
Does the Company display product information on the product label, over and above what is mandated as per local laws? Yes/No/N.A. /Remarks (additional information)	P9-2	Yes. Our copper cathodes, aluminium are all internationally known brands registered with the London Metal Exchange (LME). LME standards signify highest product quality, uniform physical characteristics and consistency of products. Our products meet all relevant necessary and benchmarked national and global regulations, standards and guidelines. This re-emphasises our capability and commitment to meet world-class standards. For continuous quality improvement, Quality Management Systems are in place, which comply with the ISO 9001:2008 standard requirements
Is there any case ﬁled by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising and/or anti-competitive behaviour during the last ﬁve years and pending as on end of ﬁnancial year. If so, provide details thereof, in about 50 words or so	P9-3	Nil
Did the Company carry out any consumer survey/ consumer satisfaction trends?	P9-3

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Section/Page Number in Integrated Report

Employees at Cairn Oil & Gas

AWARDS AND ACCOLADES

THAT SET US APART

RECOGNITIONS

The Executive Committee, led by the Chief Executive Oﬃcer assumes responsibility for the day-to-day operations and apprises the Board of the key developments, assisting them in setting our overall strategic direction.

Name of Awards

OPERATION EXCELLENCE

Great Place to Work-CertiﬁedTM

Great Managers AwardAsia Disclosure Index 2019

Quality Circle Forum IndiaQuality Circle Forum IndiaExpress Logistics & Supply Chain ConclaveGas production team of Cairn Oil & GasRavva onshore and oﬀshore ﬁelds has been awarded 'Five Star' rating for the excellence in EHS (Environment, Health and Safety) practices

Platinum Prize for Raageshwari, and Certiﬁcate of Appreciation for Mangala, Bhagyam, Aishwarya and Midstream business units

Frost & Sullivan - India Manufacturing Excellence Award 2019

Maritime Gateway- Smart Expoter-Aluminium Award

ISO

Transformation Business Media - Future of Procurement Summit and Awards

Category/ Recognition

Recepient(Business Unit)

Great Place to Work-CertiﬁedTM by Great Place to Work Institute (2019-20 ranking has not been declared yet, its an old one for all companies, please conﬁrm)Women Leadership & Result Orientation at the Great Managers Awards

Champions in terms of Voluntary Disclosure Index by scoring 10/10 and securing position in Top 5 Indian Companies

Par Excellence Award for Kaizen Competition

Sterlite Copper - Silvassa Unit

Silver Award for Case studyOutstanding Digital Transformation In Supply Chain Award

First prize at the Quality Circle Forum of India's 5S competition. A team of ﬁve members presented a case study on 'Implementation of '5S' technique in ATR (Annual Turn Around)', thereby 20 hours of saving with improved safety performance. QCFI, Delhi chapter, and sub-chapter Jaipur, conducted 'CCQC 2019 Convention' on September 20, 2019

The large-scale industries category by Confederation of Indian Industries (CII) in the CII - SR EHS Excellence Award 2019

8th FICCI Safety Systems Excellence Awards ceremony for safety excellence

India Manufacturing Excellence Award 2019 in Gold for manufacturing processes and achieving business results

Hindustan ZincHindustan ZincHindustan ZincSterlite Copper - Silvassa UnitHindustan ZincCairn Oil & GasCairn Oil & GasCairn Oil & GasVedanta LanjigarhSmart LogisticsSafetySEZ Unit (Plant II) has been certiﬁed with ISO 50001:2011 (Energy Management System)

Vedanta JharsugudaProcurement Transformation & GrowthVedanta JharsugudaBALCO

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Name of Awards

SUSTAINABILITY & CSR

Category/ Recognition

Recepient(Business Unit)

Dow Jones Sustainability Index	Ranked 1st in Asia-Paciﬁc region and 5th Globally in Metal and Mining sector	Hindustan Zinc
The Sustainability Yearbook 2020	Featured in The Sustainability Yearbook 2020 by S&P Global and RobecoSAM as Sustainability Leaders	Hindustan Zinc
FTSE4Good Emerging Index	Member of FTSE4Good Emerging Index across - Environment, Social and Governance	Hindustan Zinc
CSR Health Impact Award	Women & Child Health Initiative - conferred with the title of 'Game Changer' for its Khushi Anganwadi Program	Hindustan Zinc
ASSOCHAM Women Achievers Awards 2019	SAKHI as Best CSR initiative for Women Award	Hindustan Zinc
Best Grassroots Football Programme of 2019	Zinc Football - Best Grassroots Football Programme of 2019 at Football Delhi Awards	Zinc Football
Zee Business and World CSR Day Best Environmental Sustainability Award	Best Environmental Sustainability Award for excellence in CSR and Sustainability	Hindustan Zinc
'Best Community Development Award' at National CSR Leadership Congress & Awards presented by Zee Business	Excellence in CSR & Sustainability	Sesa Goa Iron Ore Karnataka Division
Mining Mazma - 2019	'Sustainable Mining' category	Sesa Goa Iron Ore
'Indian Chamber of Commerce Social Impact Award'	Healthcare under Large Enterprise category	Vedanta Sesa Goa Iron Ore - Value Added Business Unit
India CSR Summit and Exhibition 2019	6th CSR Impact Award for Aajeevika Project in reviving Dhokra art	Vedanta Lanjigarh
ET 2 Good 4 Good Award	CSR Activities	BALCO
Chairman Business Award	Sustainability Initiatives & Financial Results	BALCO

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Employees at Balco

AWARDS AND ACCOLADES CONTINUED...

Name of Awards

ENVIRONMENTAL PRACTICES

Excellent Renewable Initiative under Platinum Category	22 MW Solar Power Project at Rampura Agucha Mine by Green Maple Foundation Annual Award 2019	Rampura Agucha Mine
Energy Eﬃcient Unit at the Confederation of Indian Industry (CII) 20th National Award	Excellence in Energy Management	Sesa Goa Iron Ore Value Added Business (VAB) Unit
CII Energy Eﬃcient Unit Award 2019	Plant eﬃciency- Smelter I, Smelter II, CPP	Vedanta Jharsuguda
SEEM National Energy Management Award 2019.	Energy Management	Vedanta Jharsuguda
Energy Eﬃciency Summit 2019	Excellent Energy Eﬃcient Unit award 2019 for technological advancements in energy eﬃciency processes	Vedanta Lanjigarh
Energy & Environment Foundation Global Environment Award	Energy & Environment	BALCO
Mining Nazar 2019	Balco Mines - Sustainable Mining Practices	BALCO
FIMI Misrilall Jain Environment Award	Chotia Mines -Best Environment practices	BALCO
Ministry of Labour & Employment- National Safety Award	Mines	BALCO
Kalinga Safety Excellence Award 2018	Received bronze under the alumina sector category	Lanjigarh
Greentech Safety Award 2019	Received platinum under the Mines & Metal category for safe practices	Lanjigarh
Environmental Excellence Award (By CM, Punjab)	Environmental management	TSPL
ROSPA	Safety performance	TSPL
PEDA annual energy eﬃciency awards	Eﬃciency performance for 2018-19	TSPL
Eﬃcient Management Fly Ash	>500 MW	TSPL

TRANSFORMATION & INNOVATION

Dun & Bradstreet Corporate Awards 2019	Driving force of the Indian economy for their exemplary performance in the corporate world - Non-Ferrous Metals category	Hindustan Zinc
IEI Centenary Industry Excellence Award 2019	Innovation, business strategies in manufacturing/engineering operations and services and their capacity to sustain excellence in a competitive manner	Hindustan Zinc
Kumar Dixit was awarded ABP News Leadership Excellence Award 2019	Transformational leadership	CEO, Cairn Oil & Gas

GOVERNANCE

Global Golden Peacock Award

Category/ Recognition

Recepient(Business Unit)

For eminence in Corporate Governance

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Name of Awards

EXCELLENCE OF SKILLED TALENT

Category/ Recognition

Recepient(Business Unit)

India Procurement Leadership Forum & Awards 2020	Ms Amrita Singh conferred with 'Woman Procurement Leader' award	HZL
Legal Summit and Awards 2019	Legal Department was declared winner of the 'Legal Team of the Year 2019' award	Hindustan Zinc Legal team
Mines Safety Association Karnataka Zone - 3	Vedanta Sesa Goa Iron Ore Karnataka Unit won 46 awards for diﬀerent categories	Sesa Goa Iron Ore Karnataka Division
IMEA Future Factory Ready Award	Operational Excellence	BALCO
ET Now CEO of the Year Award	Awarded to Mr. Abhijit Pati for Leadership Excellence	BALCO
Customs Department Best Importor Award	Import Initiatives	BALCO
People Business Great Managers Award by Economic Times and People Business	Top 50 great managers of the country	Aluminium and Power
Excellence in trade ﬁnance	2nd Financial Leadership award	Aluminium and Power
Bronze at the India Public Relations and Corporate Communications Awards 2019	2nd Financial Leadership award	Aluminium and Power
Chairman Business award Q2 FY'20	CSR Communication (Beyond Metro)	TSPL
ET Now Business Leader of the Year Award - 2020 (Mr. Ajay Kapur)	Business Performance Q2	Aluminium and Power

PEOPLE PRACTICES

10th CII National HR Excellence Award 2019-20	'Signiﬁcant Achievement in HR Excellence Award'	Hindustan Zinc
'Top 25- India's Best Workplaces for Women - 2019' by Great Place To Work	Great Place to Work® is the global benchmark on building, sustaining and recognising high-trust, high-performance workplace cultures.	Cairn Oil & Gas
Great Place to Work	Great Place to Work certiﬁed - High Trust & High Performance	Vedanta Lanjigarh
Great Place to Work	Great Place to Work certiﬁed - High Trust & High Performance	Vedanta Jharsuguda
AON Best Employer Award	HR Enagement Initiatives	BALCO
World HRD Congress -ET HR Talent Management Leadership Award	Best Leadership Development Program	BALCO
CII HR Excellnece Award	HR Initiatives/Performance	BALCO
CII national HR Excellence Award	HR Excellence	TSPL

TECHNOLOGICAL DISTINCTION

Vedanta Group

'Excellence in Security Technology implementation and Preventive System'	IFSEC India on 19 December 2019 at India Expo Centre for their measures towards ensuring security disruptions in operations to ensure business continuity.	RJON crude security systems, Cairn Oil & Gas
Digitally Advanced Company of the Year	Federation of Indian Petroleum Industry (FIPI) for its intensive deployment of digitalisation initiatives to drive value-creation across business operations and functions.	Cairn Oil & Gas
IMC RBNQ Performance Excellence Trophy-2019'	Manufacturing	Sesa Goa Iron Ore Value Added Business Unit
CII Quality Circle recognition	For developing an eﬀective concept case study on improved traﬃc management	Sesa Goa Iron Ore Value Added Business (VAB) Unit

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MARKET REVIEW

A DYNAMIC ENVIRONMENT,

POSITIONED FOR

LONG‰TERM GROWTH

gloBAl EConomy AnD CommoDITy mARkETs:

The global economy in 2019 faced twin headwinds of geopolitical uncertainty and sluggish growth in advanced economies and emerging markets. If we take a broad perspective, economic performance remained weak across most major economies such as the Group of 7 (G-7) and BRICS nations (Brazil, Russia, India, China and South Africa) dueto a conﬂuence of several factors, including the US and China trade tensions, Brexit and the fear of deglobalisation. The year saw tepid consumer and investor conﬁdence and weak manufacturing and trade scenario. This signiﬁcantly undercut commodity demand, thereby negatively impacting prices.

Once the economies recover, global growth is expected to revive partially and register y-o-y growth of 5.8% in 2021. The recovery is expected in two stages - an initial phase of social distancing and containment, and the next planned phase of revival and stability.

On the other hand, the start of year 2020 showed signs of recovery following the Phase I trade pact between the US and China, diminished fears of a no-deal Brexit and reduced geopolitical tensions. The eﬀect of global central banks pursuing an accommodative monetary policy also helped partially revive the overall market sentiment.

However, these early signs of stabilisation were severely impacted by the risk posed by the ongoing global pandemic, COVID-19. The human cost of the pandemic is already immeasurable and all countries across the world are working hard in solidarity to protect people and limit the economic impact felt around the world. According to government sources, the US economy alone lost 20.5 million jobs in April. The number of just one month dwarfs the 8.6 million jobs that were lost over the entire stretch of 2008 and 2009 during the ﬁnancial crisis. The US economy shrank by 4.8% at an annualised rate in April, the worst decline since the fourth quarter of 2008. The British and French economies also contracted in January 2021 compared to the previous three months.

The International Monetary Fund (IMF) has pegged global growth in 2019 at 2.9%. For 2020, however, the IMF projects a negative outlook, with a -3% de-growth in the overall global output. In one of the remarkable moves the US oil futures fell to below zero for "WTI Crude oil" for the ﬁrst time in history. For the very near term the pace of the economic recovery is expected to be sluggish. Nevertheless, once the economies recover, global growth is expected to revive partially and register y-o-y growth of 5.8% in 2021. The recovery is expected in two stages - an

initial phase of social distancing and containment, and the next planned phase of revival and stability.

Globally there is an encouraging and concerted action to battle the COVID-19 pandemic. Broad-based monetary policy and government expenditure are expected to shore up economic activity in most countries and countries like India have already announced immediate economic relief and support to various strata of the population.

oppoRTunITIEs FoR VEDAnTA - GLOBAL

Globally, the concerted actions of monetary and ﬁscal policy measures have been observed by individual countries as well as international ﬁnancial institutions to help the global economy combat the slowdown. These ongoing measures are likely to provide support to improve demand for commodities. There are early signs that industrial activities in China are recovering with the Manufacturing Purchasing Managers Index (PMI) for March 2020 jumping to 52%, up from a record low of 35.7% in February 2020. Against this backdrop it is expected that global commodity prices will slowly recover, particularly across metal prices, something that Vedanta is well positioned to beneﬁt from.

Growing urbanisation and ongoing investment in infrastructure will support the use of galvanised steel, especially in emerging economies such as China and India. In addition, China's stringent environmental norms and eﬀorts to improve industrial utilisation are likely to deter new capacity additions. This supportive demand-supply dynamic for zinc is likely to augur well for Vedanta, one of the world's largest zinc producers. At Vedanta, weremain on track to become the world's largest integrated zinc-led silver producer in two years, while maintaining our cost leadership.

Recent developments in the sourcing of alumina have provided us with a cost advantage in the aluminium business. We have been able to reduce our costs considerably with the structural changes and enhanced backward integration. There is also signiﬁcant development in our energy business. We have emerged as a successful bidder for the Jamkhani coal block in Odisha. This, along with our Chotia mine, will strengthen our coal security for the aluminium business.

Thus, our diversiﬁed commodity portfolio and relentless emphasis on costs and digital implementation positions us well to take advantage of the expected demand upswing, and the resulting improvement in commodity prices.

At Vedanta, we remain on track to become the world's largest integrated zinc-led silver producer in two years, while maintaining our cost leadership.

MARKET REVIEW CONTINUED...

INDIAN ECONOMY

India is Vedanta's primary market and we believe in its immense potential, as the fundamentals for growth remain intact. 2019 has been particularly challenging for the Indian economy with a slowing growth rate, declining exports, rising inﬂation and a downturn in manufacturing output. However, the Government of India and the Reserve Bank of India (RBI) have announced a slew of policy decisions, aimed at bolstering market sentiment and reviving growth.

These include the biggest corporate tax cut in 28 years to encourage private investment. The successive interest rate cuts by the RBI are important steps in the right direction. The impacts of these measures will be gradually visible, after normalcy returns in the economy, and the beneﬁts of lower rates stimulate economic growth.

Reforms in the Insolvency and bankruptcy Code (IBC) including the enforcement of a stringent timeline for the insolvency resolution process have forced a behavioural change, leading to resolution of more cases. The Government of India has also embarked on an ambitious divestment programme, more than doubling its current target by focusing on strategic sales.

The Government of India has also announced a plethora of reforms aimed at pushing growth and investment in our speciﬁc areas of operation. The cornerstone of investment spending will come from the ₹102 trillion National Infrastructure pipeline (NIP), whichaims to ease bottlenecks and stimulate the economy. It includes projects under implementation in various government schemes such as Housing for All (PMAY), Smart Cities, Dedicated Freight Corridors, Sagarmala, Bharatmala, and Jal Jeevan Mission, apart from participation from the private sector.

This is also expected to be beneﬁcial for related sectors such as steel, base metals, cement, power transmission and distribution. The expansion of the national gas grid announced in the Union Budget 2020 and expected reforms to facilitate transparent price discovery are set to signiﬁcantly enhance the domestic gas market. While India had started to witness progress in the economy by Q4FY20, the COVID-19 situation dramatically brought production and the economic activity in the country to a standstill. Prioritising the health of its people, the Union Government announced consecutive lockdowns to maintain social distancing and arrest the spread of the pandemic.

Considering the eﬀects of COVID-19, India's growth is expected to slow to 1.9% in FY2020. While this aﬀects the nation's overall growth momentum in the short-run, India is relatively better placed than most of its counterparts and will be one of fastest recovering economies once the cycle inﬂects. In FY2021, India can expect a recovery and is expected to grow by 7.4% (Source: IMF, World Economic Outlook April 2020). Active government spending and revival of large-scale consumer demand are expected to maintain India's resilience.

oppoRTunITIEs FoR VEDAnTA - INDIA

India-focused Growth Agenda

Despite challenges in the global economy, India continues to outshine major economies of the world in terms of accomplishing decent growth that is sustainable and inclusive. The country's economic growth is supported by a sound ﬁscal policy framework, strong regulatory mechanism, wide-ranging structural reforms undertaken by the Government of India and states and a robust democratic ecosystem that continues to underline the importance of transparency in corporate governance. Rapid adoption of technology, growing conﬁdence of global investors in the performance of the Indian economy and a young, aspiring and productive population further helped spur growth prospects.

In 2019, India became the world's ﬁfth largest economy, ahead of France and the UK in terms of nominal GDP. The road ahead continues to be attractive for India, despite macro headwinds.

Going forward, we expect to see emphasis on infrastructure development on account of a burgeoning workforce and wide-ranging urbanisation. The government's vision entails over ₹100 trillion expenditure on infrastructure, coupled with concrete steps towards decarbonisation and promotion of electric mobility. These initiatives will strengthen the country's demand for commodities, given that India's per capita consumption of all metals including steel, aluminium, copper and zinc is much below the world average. India is the third-largest oil consumer in the world, but in per capita terms, it is only about one-third of the world's average. Given its rising energy needs and increased dependence on crude oil imports, this also oﬀers an opportunity for domestic oil producers.

Emphasis on infrastructure development coupled with rising energy needs will strengthen the country's demand for commodities and oﬀer opportunity for domestic oil producers.

Policy Support

The Indian Government has announced various progressive policy measures in its Union Budget 2020 as part of its eﬀorts to kickstart investment. These include the abolition of Dividend Distribution Tax (DDT) and the recently announced tax dispute settlement scheme - 'Vivad Se Vishwas', which is expected to boost the ease of doing business in India. Other measures such as lowering the eﬀective corporate tax rate, reduction in cost of capital and simpliﬁcation of regulatory and tax framework for foreign investment funds have also aided in this eﬀort.

As part of its policy push to develop the metals, mining and oil sectors, the Government of India has drafted a framework policy for a variety of key supporting areas. These include the policy for steel clusters to resolve challenges of the ancillary, downstream and value-added steel units and unlock their growth potential.

It has also constituted a working group on the proposed new industrial policy, aimed at promoting emerging sectors, reducing regulatory hurdles and making India a robust manufacturing hub. The Government is also revamping its Foreign Trade Policy (FTP) for FY2020-25, which could be a game changer for the Indian economy by promoting exports and making Indian goods more globally competitive. A National Logistics Policy is also being proposed to drive business competitiveness through an integrated, seamless, eﬃcient, reliable, green, sustainable and cost-eﬀective logistics network.

The proposed policy aims to reduce overall logistics cost to less than 10% of India's GDP.

The government has allowed 100% Foreign Direct Investment (FDI)

in coal mining and associated infrastructure, doing away with end-use restrictions for coal blocks - setting up the stage for commercial coal mining to take up in India in a big way. This clearly indicates that the government wants to bring competition, eﬃciency and transparency to the sector. The recent round of auctions in Odisha for iron ore and manganese mines is a testament to this reality. Other measures undertaken inmining include the setting up of a committee by the Ministry of Mines to revise royalty rates and dead rent on minerals. This is expected to substantially increase mining output and invigorate the sector. In the meanwhile, the Ministry of Environment, Forests & Climate Change (MoEFCC) is also working on streamlining environmental clearance processes to increase the ease of doing business.

Apart from the Open Acreage Licensing Programme (OALP) adopted earlier, India has further liberalised its oil & gas sector in 2019 by opening up its fuel retail sector to non-oil companies, a move that will intensify competition, with private and global oil majors seeking to expand their presence here. The country has also embarked on major reforms, aimed at expanding city gas distribution (CGD) networks, to raise the share of gas in the energy basket from the current 6% to 15% by 2023.

In order to provide support to the industries in the face of COVID-19, the government and the central bank have rolled out a slew of measures to infuse liquidity in the economy.

The reduced the repo rate has been cut by 75 basis points to 4.4%, reverse repo rate by 90 basis points to 4.0%, and Cash Reserve Ratio (CRR) by 100 basis points to 3.0% (as on 27 March 2020). The RBI also permitted all commercial banks to allow a moratorium of three monthson payment of instalments of all term loans outstanding as on 1 March 2020. The Reverse Repo rate was further reduced by 25 basis points to 3.75% on 17 April 2020.

To aid the economically disadvantaged sections of society, ₹1.70 Lakh Crore relief package has been announced by the Union Government under the Pradhan Mantri Garib Kalyan Yojana. The major focus areas of the relief package includes:

ƒ Increase in the MNREGA wage to ₹202 per day from the earlier ₹182 to beneﬁt 13.62 crore families
ƒ ₹2,000 paid to farmers in the ﬁrst week of April under the existing PM Kisan Yojana to beneﬁt 8.7 crore farmers
ƒ 5 kg wheat or rice and 1 kg of preferred pulses distributed free-of-cost every month for the next three months to 80 crore people
ƒ The Government of India has also allowed state governments to utilise District Mineral Foundation (DMF) fund created out of the contribution from sale of minerals to combat the COVID-19 pandemic

As exports feel the impact of the pandemic, the Indian Government has extended the validity of Foreign Trade Policy 2015-20 to 31st March 2021. In order to boost exports and make Indian exports cost competitive, India is in the process of introducing a scheme for Remission of Duties and Taxes on Exported Products (RoDTEP). It will create a mechanism to reimburse various taxes/duties/ levies, at the central, state and local levels, which are incurred during manufacturing and distribution of exported products, (applicable to those which are currently not being refunded under any other mechanism).

The Indian Government has announced various progressive policy measures in its Union budget 2020 including policy push to develop the metals, mining and oil sectors in variety of key supporting areas to unlock their growth potential.

AMIDST CHALLENGES

MARKET REVIEW

OPPORTUNITIES

ZINC

Overview

It was a tough year for Zinc generally with LME prices on a falling streak for the majority of the year. During the ﬁnancial year, LME prices fell by 38% post April 2019. The average cash settlement price was ~US$2,402/t during the year compared to last year's $2,745/t. With the COVID-19 pandemic and concerns over global growth, the market is not expected to return to normal soon. Even so, absolute downside in Zinc looks limited from current levels particularly with so much of global production becoming uneconomic at current levels.

Global Scenario

The trade war between the US and China began in 2018, when US President Donald Trump imposed tariﬀs on goods imported from China.

The resulting trade uncertainties and growing protectionism between the world's two major economies impacted base metal prices globally. In December 2019, the 'Phase I' of the trade agreement was signed. The market responded positively to the news. The LME prices in the base metals complex strengthened somewhat, but the news of the pandemic outbreak led to its downturn again.

In 2019, most of the smelters in China were shut down due to environmental concerns, since then many have returned online and the rest are expected to be back in operation later in 2020. Nevertheless, even with increased production in China, globally mine production is expected to contract by 3-4% in CY2020.

Countries like Peru, Canada, Mexico and Bolivia, which contribute roughly 20% of global mine production went in to lockdown and miners were forced to suspend operations. Consistent low LME pricing will mean number of mines will become uneconomic and will be forced to close. This shift will certainly provide a natural buﬀer to the weaker demand trends being seen; nevertheless, market challenges will persist for 2020 as uncertainty over underlying demand trends persist.

Indian Market and Opportunities

Every year, India loses approximately ~3-4% of GDP due to corrosion and Indian industries have now slowly started recognising the fact, leading them to seek solutions. In the construction sector, the need for corrosion protection rebars has recently been picked by few domestic rebar manufacturers, who are collaborating with the International Zinc Association (IZA) to bring Continuous Galvanized Rebar Plant in India.

Indian Railways, considering safety and longevity of rail tracks are working on diﬀerent mechanisms to protect the web area of rail from corrosion. Railway electriﬁcation has been growing rapidly. Encouragingly, Indian railways have set an ambitious target to electrify the complete rail route in the next few years, which will bolster India's zinc demand. Zinc-based fertilisers present other avenues which are yet to be explored. India as of now consume less than 2% of zinc-based fertiliser, which presents a lot of opportunities and demand in the sector.

Products and Customers

Around 72% of the reﬁned zinc produced by our smelters is sold in the domestic market, and the rest is being exported to South-East Asian and the Middle East. Over 65% of zinc demand comes from galvanising steel, predominantly used in the construction and infrastructure sectors. We also produce Continuous Galvanising Grade (CGG), EPG (Electro Platting Grade) and two grades of zinc for use in die-casting alloys. We are working closely with our customers and to strengthen our zinc product portfolio in terms of value-added products (VAP). Our focus is to increase the supply of VAP to 25% of total zinc sales in FY2021, from 19% in FY2020.

HZL to Launch E-commerce Platform

Hindustan Zinc is the largest primary zinc producer in India, with an expected 77% market share in 2020.

Lately, with the internet revolution, e-commerce platforms are turning out to be the new place for buyers to buy from their home and seller to reach widespread customers. HZL is planning to adapt to times by launching 'e-volve'- an e-commerce platform, which will make HZL the ﬁrst producer in the non-ferrous industry to sell the metal on e-commerce portal. It will provide our customers with real-time pricing and seamless 'click-buy' facility for all the metals in our portfolio (zinc, lead, and silver). This will reduce manual intervention and enhance governance by providing transparent and real-time INR pricing options to end-users.

India's Oil Demand Expected to Decline in the Short Run amid COVID-19

With the outbreak of the pandemic, the year FY2020 has been marked by one of the biggest international public health emergencies. Most countries are under lockdown to curb the wide-spreading virus, disrupting the economic and social activities around the world.

As we speak, India is under a series of lockdowns, which started in March 2020. This has caused a dramatic near-term demand shock. Oil demand in India is estimated to have dropped by ~50% in April with the most impact on transport fuels. Travel restrictions, and lower industrial activity have for the time being all shown a marked slowdown.

Whilst the shock has been sharp and deep in the near term the longer-term outlook for oil demand remains positive. Whilst negative demand trends are likely to continue for at least the ﬁrst half of 2020, the return to normalcy and broader economic recovery should allow oil markets to steadily rebalance over the next 12-18 months.

Market Drivers and Opportunities

The global demand shock caused by COVID-19 leaves traditional oil market modelling in uncharted territory. As a result of COVID-19 containment measures in 187 countries, mobility has almost come to a halt. Global oil demand is expected to fall by a record 9.3 mb/d year-on-year in 2020. Total global oil demand is now assumed at 92.82 mb/d, in 2020 with higher consumption expected in H2FY20 thanin H1FY20. Global oil supply is also set to plunge by ~12 mb/d in May, after OPEC+ forged its output deal to cut production. Additional reductions are set to come from other countries with the US and Canada seeing the largest declines. This will impact the fall in oil prices which will be felt throughout oil's global supply chain and adjoining industries.

Whilst the pace of the rebalancing in global oil markets remains uncertain there's little doubt of the longer-term potential of India as one of the largest sources of incremental demand growth over the coming decade.

India is the world's third largest oil consumer, the fourth-largest reﬁner and a leading net exporter of reﬁned products. Without the help of local producers like Vedanta, India's import dependency is going to increase signiﬁcantly in the coming decades.

The country currently meets 84% of its oil consumption and 47% of its gas consumption through imports.3

The government projects a 10% reduction in India's imports of oil & gas by 2022. The government also aims to increase the share of natural gas in the country's energy mix to 15%

by 2030, from the current 6%.

India has prognosticated conventional hydrocarbon resources of over 300 billion barrels of oil and oil equivalent gas, with 70% of these assets yet to ﬁnd category. To improve energy security, the government has prioritised the reduction of oil and gas imports, increasing domestic upstream activities, diversifying its supply sources and increasing Indian

investments in overseas oil ﬁelds in the Middle East and Africa.

The government is cognisant that several policy reforms are needed to revitalise the exploration and production ecosystem. Along with the fast-paced implementation of the OLAP, the government introduced the Unconventional Hydrocarbon Policy (UHC) in August 2018, followed by Enhanced Recovery policy (ER)

in October, to boost domestic production and improve hydrocarbon recovery.

The four OALP bid rounds, conducted till date, have been successful, with 94 blocks (1,37,000 sq km) awarded to leading E&P companies.

Vedanta has a world-class resource base, with a 58 blocks in India. With a strengthened growth pipeline in exploration and development, we are well-positioned to meet India's growing demand by contributing signiﬁcantly more to the countries domestic crude oil production in the coming years.

Products and Customers

Vedanta is the largest private sector producer of crude oil in India.

Our crude is sold to hydrocarbon reﬁneries and our natural gas is used by the fertiliser industry and the city gas sector in India.

1 EIA India 2020:

Energy Policy Review, PPAC January 2020

LME Prices and World Trade Scenario

ALUMINIUM

It was a challenging year for aluminium LME prices as they hovered between 1,700 US$/T to 1,800 US$/T for larger part of the year; averaging to 1,749 US$/T for the year, ~14% lower than FY2019 average of 2,035 US$/T. The global aluminium industry saw the dip in prices primarily due to sluggish demand and the pressure witnessed in the global automotive sector.

From a supply perspective, global aluminium capacity increased with the lifting of sanctions on UC Rusal by the US government. The restart of Alunorte Alumina Reﬁnery in Brazil also impacted the balance of aluminium demand and supply, as alumina supply picked up globally. On the other side, the demand showed bearish sentiments triggered by trade standoﬀ, resulting in rising exports from the country. This was exacerbated by the sharp slowdown in vehicle sales in Europe and Asia. This kept the LME aluminium prices subdued for most of the ﬁnancial year. During March 2020, the LME aluminium prices touched a 4-year low in the wake of global lockdowns; consequently impacting the global demand for aluminium. All the major end use sectors for aluminium across automotive, building & construction, consumer durables and packaging have been hit hard by lockdowns, contributing to the decline in aluminium prices.

The global demand for primary aluminium in 2019 was at approximately 64.5 million tonnes, whereas the overall aluminium demand was at approximately 90 million tonnes. It was reported that the total primary demand outside of China stood at 5.3 million tonne2 forQ1 FY21, lower by 27% year on year, which is one of the biggest quarterly declines since 2009. The total primary consumption in China had fallen to 7.2 million tonnes2 in Q4FY20, when the pandemic was at its peak in China, but the demand in China has since recovered. The global primary aluminium demand for CY2020 is estimated to be around 60 million tonnes impacted by lockdowns in various parts of the world due to COVID-19 pandemic.

Indian Market Drivers and Opportunities

Given the COVID-19 pandemic, there is a higher degree of uncertainty in both Indian and global markets. Total aluminium consumption in India is expected to reduce in 2020 from 2019 levels. All the major sectors like transport, electrical, building & construction have been impacted by lockdown imposed by Government of India.

However, the long-term demand for aluminium in India and the sub-continent will remain robust backed by increased industrial activity and government focus on infrastructure sector in the country. Several government initiatives like Make in India and Smart Cities project are expected to increase investment in the country. India's government is investing over US$1 billion in its 'Make in India' initiative. The aluminium consumption rise in India is inevitable with these initiatives lined up in the country, which is in line with India's ﬁve-trillion-dollar economy vision. There is a huge potential for increasing aluminium usage in India in building and construction, automotive and packaging industries. As Vedanta, we continue to expand our VAP portfolio in line with evolving market

Vedanta has a 2.3 mtpa proposed aluminium capacity in India and operates one of the largest single-location smelters in the world at its Jharsuguda facility. It is the market leader in primary aluminium with ~40% market share in the primary aluminium segment. Our product range includes aluminium ingots, primary foundry alloys, wire rods, billets, slabs and rolled products. We cater to electrical, automotive, building & construction segments, along with a host of other industries, well supported by its high-quality value-added product portfolio. Around 41% of our total aluminium sales globally were value-added products.During FY2020, ~33% of our total sales were to the Indian markets, speciﬁcally meant for electrical, construction and transportation industries, a marginal improvement, compared to that of last year; of which 68% of domestic sales were for value-added products.

During the year, we expanded our market reach in South Korea and Australia. We also entered new markets like Saudi Arabia and UAE, among others. International sales to our established customers in other key Asian, European and North and South American markets remained at the same level vis-à-vis last year at 1.26 million tonnes. Vedanta sold ~42% of its total sales as value-added products in FY2020.

demand, positioning us for growth in the Indian aluminium market.

Products and Customers

2 CRU's Online Information Service for Aluminium

LEAD

Market Overview

Like other base metals, lead prices were also impacted by geopolitical tensions, global economic slowdown and the downtrend in the automotive sector. Shutting down of Nrystar's Port Pirie smelter in Australia twice during the year also kept the prices volatile. Uncertainty over the COVID-19 pandemic has unsurprisingly caused further price weakness during the last quarter as major European and American automakers were forced to shut operations as countries declared lockdowns. The replacement battery segment which is not impacted by geo-political and economic factors, contributes roughly half of global lead demand, and kept the demand intact for the metal in CY2019.

Market Drivers & Opportunities

In India, more than 90% of overall lead (primary + secondary) and 80% of the primary lead are consumed by the battery segment. More than half of the battery demand is driven by replacements, which are least impacted by any macro-economic and geopolitical factor, but by wear and tear of the battery's usage. Though the economic slowdown and COVID-19 scenario might impact theOriginal Equipment (OE) demand, the replacement demand is expected to remain intact.

In the recent times, several concerns have been voiced over the demand of lead due to rapid adoption of Electric Vehicles (EVs). While EVs still use lead auxiliary batteries, these are smaller in size compared to regular car batteries, thus requiring lesser lead contribution. However, the impact of it to certain extent will be oﬀset by adoption of start-stop (idle- stop) technology for conventional vehicles, which contain around ~25% more lead.

Lead also ﬁnds application in industrial batteries, given the global push by nearly every government towards renewable energy sources such as solar and wind. This willingness to embrace renewable energy will in turn increase demand for energy storage, which in turn will drive up demand for lead acid batteries that are more economical in comparison with lithium ion batteries.

Products & Customers

India's reﬁned lead market is ~1.1 million tonnes, including both primary and secondary markets. The primary lead market, which is

~280 kt in size, remained stagnant in 2019. During FY2020, HZL increased its domestic sales by 5% compared to last year. We sold 86% of our reﬁned lead metal in the domestic market and the rest was exported to South-East Asian markets. Next year, we are expecting to increase our sales by 3-4% through new customers via the e-commerce platform and introducing lead alloys in our product portfolio. We are already exploring through collaboration with our customers and plan to exit Q4FY21 with 10% Lead VAP Sales.

Lead Ingots

SILVER

Global Scenario

Geopolitical tensions and economic slowdown led the Federal Reserve (the Fed) to cut down rates for the ﬁrst time in the last 10 years in July 2019. In 2019, the Fed cut interest rates by a total of 75 basis points. The latest one in March 2020 being an emergency cut which brought the benchmark interest rate to zero to support the economy while dealing with the COVID-19 pandemic. Rate cuts like these draw investors' attention towards precious metals like silver, which are often considered as safe haven, to diversify their portfolio risk. Silver witnessed a wide range in prices during the ﬁnancial year, from touching the high of US$18.48/oz in August 2019 to falling the low of US$12.01/oz in March 2020.

Silver ﬁnds multiple applications as an industrial metal. The lockdown across countries has hit industrial demand for the metal.

Market Drivers & Opportunities

In 2019, India's silver demand was estimated to be ~7,000 tonnes and HZL roughly contributes 10% of our country's demand. We sell 100% of the precious metal in the domestic market. India's industrial demand for the metal has been consistent during the last ﬁve years.

It contributes ~20% of total demand, which compared to global average where ~50% demand comes from the industrial sector is quite low. Demand in jewellery segment saw 10% CAGR growth in the preceding ﬁve years.

However, the demand is mostly seasonal in nature. The investment demand has shown a decline in the second half of last year mainly due to sudden increase in prices. Silver prices hovered ~₹0.4 to 0.5 lakh per kg in the domestic market, a new high for the market.

The price increase can be attributed to two reasons. First escalation (10% to 12.5%) in customs duty in the last year's Union Budget presented in July 2019 and second to the price increase in the international markets as the Fed rate cuts have diverted the attention of investors to the precious metal, often considered as safe haven. We expect India's market to slowly accept the new price range and investors to start investing in the precious metal for portfolio diversiﬁcation.

Products & Customers

HZL is India's only primary silver producer and ranks 6th globally in terms of the top silver producing companies. We cater to various segments of markets including the industrial sector (electrical

POWER

Domestic Demand Driving Capacity Expansion

Vedanta operates over 9,000 MW diversiﬁed power portfolio in India consisting of 96% thermal power and 4% from renewable energy sources.

India is the third largest electricity producer in the world. The electricity generation target for conventional sources for FY2020 has been ﬁxed at 1,330 billion units (BU), 6.5% higher y-o-y. Between 2010-2019, the country's electricity generation grew at 5% CAGR, driven by government initiatives and schemes to expand electriﬁcation and provide round-the- clock power supply.

Market Drivers and Opportunities

India's power demand is expected to grow rapidly to 1,895 TWh by 2022, from 691 TWh in 2007 at 7% CAGR, driven predominantly by the expansion in industrial activities, a growing population, rising per capita income, policy support and increasing electricity penetration.

The government has also been supportive of growth in the power sector, delicensing the electrical machinery industry and allowing 100% Foreign Direct Investment (FDI). From April 2000 to June 2018, total FDI in the sector was US$14.2 billion, of which US$6.8 billion was invested in non-conventional power sources above.

The government has recently opened the coal sector for commercial mining, with revenue sharing based model, which is expected to ease any coal availability issues during peak demand season. In the wake of surging domestic coal production, thecountry's power sector is becoming increasingly stable.

At Vedanta, we are looking at expanding the renewable energy generation portfolio. The Ministry of Power notiﬁcation on biomass co-ﬁring dated 24 November 2020 allows blending up to 5%-10% biomass , considering it as renewable power.

This has opened additional avenues for utilising renewable power in existing thermal power plants. Vedanta has completed successful pilot projects for using biomass for power generation in its thermal power plants at Jharsuguda that supply power for aluminium production.

As of January 2020, India had total installed capacity of 369 GW, of which thermal constituted 231 GW, nuclear 7 GW, hydro 45 GW and renewables at 86 GW. The total captive power installed capacity stood at 55 GW.

Currently, India has a demand-supply gap of ~0.5%, providing an encouraging headroom for growth in the power market. The target for renewable energy has also been increased to 175 GW by 2022, of which 100 GW will be produced through solar power.

Vedanta's power portfolio is well positioned to capitalise on India's growing demand for power.

Products and Consumers

Of our cumulative power portfolio, 37% is used for commercial power, while 63% is meant for captive use. Nearly 95% of the power generated for commercial purposes is backed by long-term Power Purchase Agreements with state distributioncompanies. The Ministry of Power, Government of India issued an order dated 28 June 2019 that has directed the DISCOMs (refers to electricity distribution companies in India) to service entire payments for any power supplied since August 2019 on advance basis. This has brought down the billing payment cycle across India.

3 Ministry of Power publication on Power Sector at a glance in India as on 18 Feb 2020 around 0.5%, powermin.nic.in/en/content/power-sector-glance-all-india
4 IBEF Report on Power Sector in Indiawww.ibef.org/download/Power-June-2017.pdf
5 Ministry of Coal notiﬁcation on auction of coal mines for sale of coal - Discussion paper on key terms & conditionswww.coal.nic.in/ sites/upload_ﬁles/coal/ﬁles/curentnotices/ Discussion-Paper-Auction-of-Coal-Mines.pdf

Iron Ore Prices Reversed from Early 2019 Strength

IRON ORE

Weaker global steel demand and low margins for most steelmakers have fed through to the global iron ore market, constraining demand in recent months. Iron ore prices have dropped noticeably from their 2019 peak, as supply shortfalls have gradually closed. However, prices are not likely to retreat much further in the short term, as iron ore markets remain tight and iron ore stocks remain near ﬁve-year lows.

The FOB Australia iron ore price (62% iron content)-at which most Australian iron ore is sold-peaked in mid-2019, following the fallout from the tailings dam collapse in Brazil, but subsequently corrected. In late 2019, iron ore prices stabilised at around the same level as in late 2018.

Market Drivers and Opportunities

Iron ore prices remain unusually high following production shortfalls. The iron ore price was expected to decline to an average US$60 a tonne (FOB Australia) by 2021, as the seaborne market gradually returned to balance. Australia's iron ore export earnings are set to increase from US$77 billion in FY2019 to $84 billion in FY2020. Earnings are then projected to ease to US$66 billion in the ﬁnal year (FY2021) of the outlook period, as seaborne prices gradually decline. Export volumes are likely to grow from 834 million tonnes in 2019 to 878 million tonnes by 2021, as new production commences in Western Australia. The Brazilian supply is also recovering, albeit at an uneven pace.

Output from Vale remains constrained, as it is focused on dismantling a further nine tailingsdams identiﬁed as facing potential collapse. Three of these dams are likely to be fully decommissioned and reintegrated into the surrounding environments by 2022, with

Vale increasingly focused on risk management over recent months.

Output from Vale facilities remains uneven across Brazil, with regulators having frozen output at some sites during the September quarter. Vale is currently monitoring a major dam and has revised its forecast for the ﬁrst quarter of 2020 down to 68- 73 million tonnes of iron ore, from a previous forecast of 70-75 million tonnes. This will contribute to tight global supply conditions in 2020.

Products and Customers

Iron ore, a key ingredient in steel manufacture, is used in the construction, infrastructure and automotive sectors. Our iron ore

India's steel use per capita for ﬁnished steel products stood at 74.3

COPPER

Global reﬁned copper consumption remained unchanged in 2019 at 23.5 Mt vis-à-vis 2018, while demand in China, the largest copper consumer increased by ~1%. Geopolitical tensions and a struggling global manufacturing sector plagued reﬁned copper consumption in 2019.

Encouraging developments in the trade dispute between the US and China was gradually bolstering

STEEL

The construction sector is boosting steel demand

Global crude steel production reached 1,869 million tons for the year CY2019, up by 3.03% compared to 2018. Growth can be attributed to increase in production by China at 8.3% y-o-y. India's crude steel production was 108.57 million tons, down by 2.1% on 2019, meaning that India has replaced Japan as the world's second largest steel producing country. While the steel demand recovery seen in 2018 continued in 2019, risks have increased due to global pandemic breakdown, high debts and volatile capital ﬂows in many emerging economies. As a result, steel prices are expected to experience volatility in 2020. India's steel demand has shown a marginal growth of 1.4% from 98.7 million tonnes in FY2019 to 100 million tons in FY2020. But world steel consumption is expected to see a fall of 15-20% in 2020 as a result of the virus outbreak. In the medium term (2019-2024), demand is expected to grow at 0-2% CAGR with world excluding china at growing at 1-3% CAGR.

consumer conﬁdence. However, the pandemic outbreak has jeopardised recovery at least for the medium term. On the supply side, India grappled with availability constraints of reﬁned copper due to Vedanta's Tuticorin smelter closure for the second year in a row.

Products and Customers

Reﬁned copper is predominantly used in manufacturing cables, transformers and motors as well as castings and alloy-based products. The Tuticorin smelter closure adversely impacted our production in India.

Market Drivers and Opportunities

Over the medium and long term, copper consumption in India and China is likely to increase, driven by population growth, urbanisation, the rise of aspiring middle class and demand for EVs.

kg, way below the world average of 229.3 kg, suggesting a huge unrealised potential for steel demand growth. Recently, India has been trying to unleash this through an extensive reform agenda and an ongoing push for infrastructure development. These factors, along with favourable demographics, are improving the macroeconomic fundamentals.

India was a net exporter in FY2020 at 1.5 million tonnes net exports compared to net importer in FY2019 with exports increased to 8.3 million tonnes a growth of 31.4 % in FY2020 compared to FY2019 at 6.3 million tonnes. However, the country is to witness a sudden increase in exports in FY21 as well.

Products and Customers

We completed the acquisition of ESL, an integrated steel plant on June 4, 2018. ESL is primarily selling Wire rod, TMT and DI pipe products in India mainly to the construction, infrastructure and automotive sectors. In India, long products consumption was increased to 52 million tonnes, a growth of 5.83% in FY2020 compared to 49 million tonnes in FY2019, whereas ﬂat products have seen a ﬂat of 3.06% from 49.4 million tonnes in FY2019 to 47.9 million tonnes.

These trends are supported by enabling government measures and initiatives. However, these forecasts will only hold true if the virus is contained properly and there are no fears of massive disruption in socio-economic life across geographies.

On the supply side, there could be further disruptions in copper production due to the smelter upgrades in Chile following the introduction of new environmental regulations.

The extended closures at Chilean smelters (including Chuquicamata and Potrerillos) reduced smelter production in the ﬁrst half of 2019.

Our ability to take advantage of emerging opportunities is largely dependent on the re-opening of our smelter at Tuticorin.

Market Drivers and Opportunities

With COVID-19 spreading across the globe, steel demand to see a substantial decline in 2020. Speed of recovery will be inﬂuenced by containment of virus and government stimulus. The pandemic may bring further setbacks to globalization, with global supply chain disruptions and nationalistic trade/ investment measures. The automotive sector shall be hardest hit among steel using sectors followed by mechanical machinery. Deep scars from the pandemic may have a lasting impact on economies and investment recovery shall take time. Business paradigm hasto adjust to the new normal - social distancing, teleworking, changes in consumer behaviour and preferences. Social distancing may undermine productivity and increase costs. While construction sector, which is identiﬁed as the steel demand driver shall be aﬀected by changing demand for housing v/s commercial buildings, new urbanisation patterns, weak investment, shift towards green energy, the machinery sector will suﬀer from low investment, but shall boost from automation. Favourable government stimulus shall be the key to economy's revival.

REVIEW

MANAGEMENT DISCUSSION AND ANALYSIS

FINANCE

EXECUTIVE SUMMARY

We had a strong operational and ﬁnancial performance in FY2020 despite of the challenging operating environment of low commodity prices and some impact on production on account of lockdown to combat COVID-19. The company continues to focus on controllable factors such as resetting cost base through diverse cost optimisation initiatives, disciplined capital investments, working capital initiatives, marketing initiatives & volume with strong control measures to ensure safe operations across businesses within framed government and corporate guidelines in view of COVID-19.

In FY2020, we recorded an EBITDA of ₹21,061 crore, 12% lower y-o-y and robust adjusted EBITDA margin of 29%. (FY2019: ₹24,012 crore, margin 30%).

Lower production volumes resulted in decrease in EBITDA by ₹102 crore, driven by lower production volumes at Zinc India (includes COVID impact) and Oil & Gas business. However, this was partially oﬀset by higher sales volume at Iron ore of Karnataka & Steel business, additional volume from Gamsberg operations and increase in volumes at Aluminium business.

Market factors resulted in decrease in EBITDA by ₹3,672 crore compared to FY2019. This was primarily driven by downturn in the commodity prices across businesses partially oﬀset by input

CONSOLIDATED EBITDA

commodity deﬂation (mostly in alumina, thermal coal and carbon prices) and rupee depreciation.

Gross debt as on 31 March 2020 was ₹59,187, crore, decreased by ₹7,038 crore since 31 March 2019 (FY19: ₹66,225 crore), primarily driven by repayment of debt at Vedanta Standalone, TSPL and temporary borrowing at Zinc India partially oﬀset by increase in borrowing at Oil & Gas.

Net debt as on 31 March 2020 was ₹21,273 crore, decreased by ₹ 5,683 crore since 31 March 2019 (FY19: ₹26,956 crore), primarily driven by repayment of debt partially oﬀset by working capital blockage due to Covid-19 and dividend payment during the year.

The balance sheet of Vedanta Limited continues to remain strong with cash & cash equivalents, of ₹37,914 crore and Net Debt to EBITDA ratio at 1.0x, which is the lowest among Indian peers.

CONSOLIDATED EBITDA

EBITDA decreased by 12% in FY2020 to ₹21,061 crore.

This was mainly driven by downturn in commodity prices, lower volume and higher cost at Zinc India & Oil & Gas business partially oﬀset by additional volumes from Gamsberg operations and higher sales at Iron Ore Karnataka & Steel business, higher volume at Aluminium business, easing out of input commodity inﬂation, improved cost of production at Aluminium business, past exploration cost recovery at Oil & Gas business and rupee depreciation.

Consolidated EBITDA

Zinc	9,094	11,298 (20)
-India	8,714	10,600 (18)
-International	380	698 (46)
Oil & Gas	7,271	7,656 (5)
Aluminium	1,998	2,202 (9)
Power	1,649	1,527 8
Iron Ore	878	584 50
Steel	588	791 (26)
Copper India	(300)	(235) 28
Others	(118)	189 (28)
Total EBITDA	21,061	24,012 (12)

FY2020

CONSOLIDATED EBITDA BRIDGE

market and regulatory: ₹ (3,660) crore

a) Prices, premium / discount
b) Direct raw material inﬂation

c) Foreign exchange movement

d) Proﬁt petroleum to GOI at Oil & Gas

e) Regulatory changes

operational: ₹ 708 crore

b) Cost and marketing

A) pRICEs, pREmIum/DIsCounT Commodity price ﬂuctuations have a signiﬁcant impact on the Group's business. During FY2020, we saw a net negative impact of ₹7,839 crores on EBITDA due to commodity price ﬂuctuations.

Zinc, lead and silver: Average zinc LME prices during FY2020 dropped to US$2,402 per tonne, down 12% y-o-y; lead LME prices decreased to US$1,958 per tonne, down 8% y-o-y; and silver prices increased to US$16.5 per ounce, up 7% y-o-y. The cumulative impact of these price ﬂuctuations lowered EBITDA by ₹2,153 crore.

C) FoREIgn ExChAngE FLUCTUATION

INR and SA Rand depreciated against the US dollar during FY2020. Stronger dollar is favourable to the Group'sKey exchange rates against the US dollar:

Average year ended

31 March 2020

(₹ crore, unless stated)

24,012

(7,839)

3,576

592

169

(158)

(102)

422

388

21,061

EBITDA, given the local cost base and predominantly US dollar-linked pricing. The favourable currency movements positively impacted EBITDA by ₹592 crore.

Average year ended

31 March 2019

% change

As at 31 March 2020

As at 31 March 2019

Indian rupee

70.86

69.89

1.4%

74.81

69.17

South African rand

14.78

13.76

7.41%

17.89

14.48

Aluminium: Average aluminium LME prices decreased to US$1,749 per tonne in FY2020, down 14% y-o-y, this had a negative impact of ₹3,954 crore on EBITDA.

oil & gas: The average Brent price for the year was US$60.9 per barrel, lower by 13% compared with US$70.4 per barrel during FY2019, this was further reduced by a higher discount to Brent during the year (FY2020: 7.1%; FY2019: 6.1%). This had negative impact on EBITDA by ₹1,026 crore.

B) DIRECT RAw mATERIAl INFLATION

Prices of key raw materials such as imported alumina, thermal coal, carbon and caustic have reduced signiﬁcantly in FY2020, improving EBITDA by ₹3,576 crore mainly at Aluminium and Zinc India business.

Encouraging young leaders, Vedanta Aluminum Business

D) pRoFIT pETRolEum To goI AT OIL & GAS

The proﬁt petroleum outﬂow to the Government of India (GOI), as per the production sharing contract (PSC), reduced by ₹169 crore. The reduction was primarily due to the higher recovery of capital expenditure incurred over the previous year.

E) REgulAToRy

During FY2020, changes in regulatory levies such as electricity duty, GST credits, Renewable Power Obligation etc. had a cumulative negative impact on the Group EBITDA of ₹158 crore.

F) VolumEs

Lower volume led to decrease in EBITDA by ₹102 crore by following businesses:

Zinc India (negative ₹628 crore)

The integrated metal sales stood at 860 kt, lower by 4%, and silver sales of 586 tonnes, lower by 13%. This had a cumulative negative impact on EBITDA of ₹628 crore.

oil & gas (negative ₹638 crore)

Oil & Gas business achieved WI sales of 40.27 mmboe, down by 8% y-o-y. This had negative impact on EBITDA of ₹638 crore

Iron ore of Karnataka (positive ₹531 crore)

Iron ore of Karnataka achieved sales of 5.78 mn tonnes, up 125% y-o-y. This sales volume increase had a positive impact on EBITDA of ₹531 crore.

Zinc International (positive ₹396 crore)

Increased volumes at Gamsberg from 15 kt in FY2019 to 109kt in FY2020, mainly because of full year operation in FY2020. This has positively impacted EBIDTA by ₹ 396 crore.

steel business (positive ₹125 crore)

ESL achieved metal sales of 1,179 KT, up 15% y-o-y. This sales volume increase had a positive impact on EBITDA of ₹125 crore.

Aluminium (positive ₹70 crore)

In FY2020, the Aluminium business achieved metal sales of 1.92 million tonnes, up 3.6% y-o-y. This volume increase had a positive impact on EBITDA of ₹70 crore.

g) CosT AnD mARkETIng

Improved costs resulted in an increase in EBITDA by ₹422 crore over FY2020, primarily due to improved cost at Aluminium business driven by globally falling input raw material indices (alumina, carbon, caustic etc.), lower power cost on account of materialization of linkage coal supply and higher production of captive alumina at Lanjigarh and Steel business driven by falling input raw material indices and operational eﬃciencies. This was partially oﬀset by higher cost at Zinc India due tovolume led absorption & Oil & gas business due to higher maintenance cost and production enhancement initiatives during FY2020.

h) oThERs

This primarily includes the past exploration cost recovery at Oil & Gas business during the FY2020 partially oﬀset by lower power EBITDA, inventory valuation at Aluminium business and lower EBITDA at Avanstrate Inc. (ASI) with a net positive impact on EBITDA of ₹388 crore.

INCOME STATEMENT

Particulars

Net Sales/Income from Operations	83,545	90,901 (8)
Other Operating Income	902	1,147 (21)
EBITDA	21,061	24,012 (12)
EBITDA margin1 (%)	29%	30% -
Finance Cost	4,977	5,689 (13)
Investment Income	2,443	3,618 (32)
Exchange Gain /(Loss)	(306)	(509) (40)
Proﬁt before Depreciation and Taxes	18,220	21,432 (15)
Depreciation and Amortisation	9,093	8,192 11
Proﬁt before Exceptional items	9,127	13,240 (31)
Exceptional items2: credit/(expense)	(17,386)	320 -
Taxes3	(3,516)	3,862 -
Proﬁt after taxes	(4,743)	9,698 -
Proﬁt after taxes (before Exceptional Items)	6,122	9,490 36
Minority interest	1,920	2,633 27
Attributable PAT after exceptional items	(6,664)	7,065 (42)
Attributable PAT (before exceptional items)	3,995	6,857 38
Basic earnings per share (₹/share)	(18.00)	19.07 (42)
Basic EPS before exceptional items (₹/share)	10.79	18.50 38
Exchange Rate (₹/US$) - Average	70.86	69.89 1
Exchange Rate (₹/US$) - Closing	74.81	69.17 8

FY2020

1. Excludes custom smelting at Copper India and Zinc India Operations.
2. Exceptional Items gross of tax
(₹ crore, unless stated)
FY2019
% change
3. Tax includes tax gain on exceptional items of ₹6,521 crore on special items in FY2020 (FY2019: charge of ₹112 crore)
4. Previous period ﬁgures have been regrouped/rearranged wherever necessary to conform to current period presentation.

REVENUE

Revenue for the year was ₹83,545 crore, 8% lower y-o-y. This was driven by subdued commodity prices, lower volume at Zinc India, lower volume at Oil & Gas business and lower power sales at TSPL partially oﬀset by higher volume at Aluminium business, additional volumes from Gamsberg operations and higher sales at Iron Ore Karnataka & Steel business and rupee depreciation.

EBITDA AND EBITDA MARGIN EBITDA for the year was ₹21,061 crore, 12% lower y-o-y. This was mainly on account of subdued commodity prices, lower volume and higher cost at Zinc India and Oil & Gas business partially oﬀset by higher volume at Aluminium business, additional volumes from Gamsberg operations and higher sales at Iron Ore Karnataka & Steel business, easing out of input commodity inﬂation, improved cost of production at Aluminium business, past exploration cost recovery at Oil & Gas business and rupee depreciation. We maintained a robust adjusted EBITDA margin1 of 29% for the year (FY2019: 30%)

DEPRECIATION & AMORTIZATIONS Depreciation for the year was ₹9,093 crore compared to ₹8,192 crore in FY2019, higher by 11%, primarily on account of higher charge at Oil & Gas business due to capitalisation of new wells partially oﬀset by lower production; higher depreciation charge at Zinc India on account of higher ore production, additional capitalisation and increase in amortization rate due to increase in cost; higher charge at Zinc international due to increased production from Gamsberg and acquisitions of Steel business in June'2018.

NET INTEREST

The The blended cost of borrowings was 7.9% for FY2020 compared to with 8.1% in FY2019. Finance cost for FY2020 was ₹4,977 crore, 13% lower y-o-y compared to ₹5,689 crore in FY2019 mainly on account of decrease in average borrowing due to repayment of debt at Vedanta Standalone, TSPL, BALCO and temporary borrowings at Zinc India, repayment of preference shares at CIHL in FY2019 and lower average borrowing cost in line with market trends.

Investment income for FY2019 stood at ₹2,443 crore, 32% lower y-o-y compared to ₹3,618 crore in FY2019.

This was mainly due to mark to market loss on a treasury investment made by Vedanta's overseas subsidiary through a purchase of an economic interest in a structured investment in Anglo American Plc from its ultimate parent, Volcan Investments Limited and one-time reclassiﬁcation from other comprehensive income to proﬁt and loss account at Zinc India during FY2019 which was partially oﬀset by Mark to Market gain on other investment during the year.

EXCEPTIONAL ITEMS

The exceptional items for FY2020 was at ₹17,386 crore, mainly on account of impairment charge of ₹17,636 crore relating to property, plant and equipment and exploration assets and claims & receivables at Oil & Gas of ₹15,907 crore, Copper ₹721 crore, Iron ore business (IOB) of ₹349 crore, Avanstarte Inc. (ASI) of ₹504 crore and Fujairah Gold (FG) ₹151 crore partially oﬀset by RPO liability reversal of ₹168 crore at aluminium pertaining to previous years based on revision of liability pursuant to Odisha Electricity Regulatory Commission notiﬁcation and interest accrued on power debtors at TSPL ₹82 crore in line with positive Supreme court order of prior periods.

(For more information, refer note (33) set out in P&L notes of the ﬁnancial statement on exceptional items).

TAXATION

Tax credit for FY2020 stood at ₹ 3,516 crore (FY19: charge of ₹3,862 crore). However, normalised eﬀective tax rate (excluding tax on undistributed reserves from Zinc India , dividend from CIHL and impact of new tax regime) for FY2020 stood at 34%, compared to 28% in FY2019 due to proﬁt mix within entities and primarily on account of increase in weightage of Cairn Energy Hydrocarbon (CEHC) which is taxable at higher rate of 43.68%.

ATTRIBUTABLE PROFIT AFTER TAX (BEFoRE ExCEpTIonAl ITEms AnD DDT)

Attributable PAT before exceptional items was ₹3,995 crore in FY2020 compared to ₹6,857 in FY2019 (lower 42% y-o-y).

EARNINGS PER SHARE

Earnings per share before exceptional items for FY2020 were ₹10.79 per share as compared to ₹18.50 per share in FY2019.

DIVIDEND

Board has declared interim dividend of ₹3.90 per share during the year.

SHAREHOLDERS FUND

Total shareholders fund as on 31

March 2020 aggregated to ₹54,635 crore as compared to ₹62,297 crore as at 31 March 2019. This was primarily net proﬁt attributable to equity holders earned during the year partially oﬀset by dividend paid during the year.

NET FIXED ASSETS

The net ﬁxed assets as on 31 March 2020 were ₹107,489 crore. This comprises of ₹16,837 crore as capital work-in-progress as on 31 March 2020.

BALANCE SHEET

Our ﬁnancial position remains strong with cash and liquid investments of ₹37,914 crore.

The Company follows a Board approved investment policy and invests in high quality debt instruments with mutual funds, bonds and ﬁxed deposits with banks. The portfolio is rated by CRISIL which has assigned a rating of "Tier I" (meaning highest safety) to our portfolio Further, the Company has undrawn fund based committed facilities of c.₹5,300 crore as on 31 March 2020.

Gross debt as on 31 March 2020 was ₹59,187 crore, a decrease of ₹7,038 crore since March 31, 2019.This was mainly due to the repayment of debt at Vedanta Standalone, TSPL and temporary borrowing at Zinc India partially oﬀset by increase in borrowing at Oil & Gas business.

Gross Debt comprises term debt of c.₹46,600 crore and short-term working capital loans of c.₹12,600 crore. The loan in INR currency is 87% and balance 13% in foreign currency. Average debt maturity is of term debt is c.3.2 years as at 31 March 2020.

Crisil and India Ratings revised the outlook on Vedanta's Rating from AA/Positive to AA/Negative.

THE YEAR IN SUMMARY

Mine production progressively improved during the year with ore production growth at Rampura Agucha and Zawar and steady production at Sindesar Khurd while Kayad and Rajpura Dariba mines operated at capacity. This led to a record ore production of 14.5 million tonnes despite disruptions related to COVID-19 towards the end of theyear. Operations were halted on account of lockdown to combat COVID-19 from March 22, 2020 onwards.

Mined metal production was 917 kt, lower by 2% due to inferior ore grades and COVID-19 related shutdown. Zinc production declined marginally while lead and silver were lower due to some temporary operational issues at Dariba Lead smelter and lower silver grades.

Major projects were completed including Rampura Agucha production shaft and Sindesar Khurd production shaft was ramped up post its commissioning at the end of last year.

The ﬁrst dry tailing plant was commissioned in Zawar while the fumer project at Chanderiya and two pasteﬁll/hydroﬁll plants in Zawar are ready for commissioning.

We are deeply saddened to report two fatalities at the parking yard in Sindesar Khurd mine and Fumer project site in Chanderiya during the year. We have carried out detailed investigations of the incidents to learn and deploy our learnings across the Company and prevent any reoccurrences.

OCCUPATIONAL HEALTH & SAFETY

LTIFR for the year was 1.39 as compared to 0.63 a year ago. We are continuously trying to improvise our methodologies of incident investigation and categorisation with enhanced leadership focus on incident reporting. There has been greater management focus to bring a cultural change via Visible Felt Leadership programmes, safety town halls, enabling tools like safety whistle blower as well as reward & recognition for near-miss reporting.

In view of the COVID-19 health emergency, an advisory was issuedfor precautionary measures along with awareness campaigns and drive for disinfecting facilities across the Company. The Company's operations were halted during the lockdown period and employees were asked to work from home barring some employees who attended call for duty to keep production assets safe. To ensure business continuity, a committee of COVID-19 Response 'War Room' was organised to identify and implement urgent business decisions. We also engaged the SHG women in our communities to stitch and distribute cloth masks among the villagers, police and administration oﬃcials. Our teams worked with civil administration to ensure food reached vulnerable sections of the society.

Key safety initiatives undertaken during the year include Project Ru-ba-ru for business partner competency assessment with respect to manning, skill, qualiﬁcations, experience and gaps in organization; 'I Support Aarohan' wherein all employees undertook individual safety projects every quarter to improve safety of their work area; roll-out of new safety standards for molten metal and ground control management; technology enabled safety initiatives to reduce man-machine interactions; conducted Safety Perception Survey for making safety implementation system more eﬀective and robust; and partnered with the global leader in industrial hygiene to improve hygiene with a one-year roadmap.

Record ore production of 14.5 million tonnes

ZINC INDIA

ENVIRONMENT

During the reporting year, hazardous recycling rose to 31% compared to 28% in FY2019, and water recycling rate was 39% (FY2019: 34%).

During the year, India's ﬁrst dry tailing plant was commissioned at Zawar Mine to reduce freshwater consumption by enhancing recovery of process water to 90%, improve tailing dam structural stability and reduce the water footprint.

For eﬀective metal recovery, a second ancillary plant was commissioned for treatment of process residues at Chanderiya Lead-Zinc smelter and a project to recover sodium sulphate was commissioned at the Dariba Zinc smelter. Waste such as Jarosite, Jaroﬁx, slag and ﬂy ash were gainfully utilized in cement manufacturing and road construction whilst tailings were used in back-ﬁlling voids in mines.

As a part of beyond the fence initiatives for water management, a 15 MLD of sewage treatment plant is under commissioning in Udaipur city, which will take the total sewage treatment capacity to 60 MLD.

As part of commitment towards biodiversity conservation, the Company is now a member of International Union for Conservationof Nature (IUCN) 'Leader for Nature India' initiative. Our sustainability activities received several endorsements during the year including the CII- ITC Sustainability Award for Corporate Environment as well as Best Environmental Sustainability Award in the category of National Awards for 'Excellence in CSR and Sustainability' by World CSR Day.

Zinc India's sustainability performance was ranked 5th in the Dow Jones Sustainability Index (Metal and Mining) globally, and No. 1 in Asia Paciﬁc region and also selected as constituent of FTSE4Good Index series and the S&P Sustainability yearbook for the third consecutive year. Zinc India was also declared as 'Disclosure Champion' in the Asia Disclosure Index by FTI Consulting and is amongst the top 5 companies in India.

PRODUCTION PERFORMANCE

Production (kt)

1. Excluding captive consumption of 7,088 tonnes in FY2020 versus 6,534 tonnes in FY2019.
2. Excluding captive consumption of 36.7 tonnes in FY2020 versus 34.2 tonnes in FY2019.

OPERATIONS

For the full-year, ore production was up 5% y-o-y to 14.5 million tonnes on account of strong production growth at Rampura Agucha and Zawar mines, which were up 18% and 14% respectively. Mined metal production for FY2020 was 917,000 tonnes compared to 936,000 tonnes in the prior year on account of COVID-19 related lockdown and low grades at Kayad and Sindesar Khurd mines in H1 FY2020.

Integrated metal production was down 3% to 870kt and silver production was lower by 10% to 610 MT due to COVID-19 related lockdown, lower lead production in Q2 FY20 & Q3 FY20 due to temporary operational issues and lower silver grades.

Smelting operation at Dariba Smelting Complex

India's ﬁrst dry tailing plant commissioned at Zawar Mine

Total mined metal	917	936 (2)
Reﬁnery metal production	870	894 (3)
Reﬁned zinc - integrated	688	696 (1)
Reﬁned lead - integrated1	182	198 (8)
Production - silver (in tonnes)2	610	679 (10)

FY2020

PRICES

Zinc LME prices fell by 12% to end the year at an average of US$2,402 per tonne on account of trade war between the US and China and the outbreak of COVID-19 in the ﬁnal quarter of the year. On the positive side, exchange stocks continue to remain low at seven days of global consumption despite inﬂow of stocks to exchanges as unprecedented outbreak impacted demand

The ﬁnancial year started on a high note with Zinc LME price crossing US$3000 per tonne mark, but

ZInC DEmAnD - supply

As many countries have imposed lockdown and have issued workforce curtailment advisories to tackle the spread of virus, mines are operating at reduced eﬃciency. Many mines in Peru, Mexico, Bolivia have suspended operations. The present low zinc price in US$1900-US$2000 has made many mines economically unviable. The new projects have been delayed and considering all these factors, global mine production is expected to witness contraction in CY2020. As per Wood Mackenzie, mine production is likely to contract by 3.8% in CY2020 compared to CY2019.

The benchmark Treatment Charge this year is US$299.5 per tonne, a substantial increase from last year's US$245 per tonne, highest since 2008. The spot TC's expected to remain higher for the year and would motivate smelters to continuesubsequently the price witnessed downward trend before holding some ground in September and October. The signing of 'Phase I' of the trade agreement between the US and China in December provided some

Particulars

Average zinc LME cash settlement prices US$/tonne

2,402

2,743

(12)

Average lead LME cash settlement prices US$/tonne

1,952

2,121

(8)

Average silver prices US$/ounce

16.5

15.4

production. The reﬁned metal production is expected to grow at 0.6% in CY2020 as per Wood Mackenzie.

The last two years have witnessed a contraction in global zinc consumption with 0.4% in CY2018 and 1.1% in CY2019. Further, this year demand has weakened as the world is combating the pandemic. Lockdowns of 4-8 weeks have muted the demand for zinc in downstream industries. Major auto manufacturers in Europe have closed operations amid subdued demand and there are

Zinc Global Balance (in kt)

Mine Production

12,853

13,363

12,953

Smelter Production

13,686

13,601

13,183

Consumption

12,984

13,924

14,322

support to the price in January but prices again tumbled as the health catastrophe struck Industrial metal prices, which took a hit as industrial activities and government spending on infrastructure projects stopped.

FY2020

FY2019

% change

raw material supply chain constraints due to boundary closures and limited cargo movements. Infrastructure spending has also halted. As per Wood Mackenzie's initial reports, global zinc demand is expected to decline by 6.8%.

Indian government announced a 21-day nationwide lockdown which was further extended by 33 days in two steps to ﬁght against the pandemic. Downstream industries, steel manufactures, galvanisers, alloy makers have suspended operations or are operating at reduced capacities.

CY2020

CY2019

CY2018

Source: Wood Mackenzie

UNIT COSTS

Zinc's cost of production (excluding royalty) for FY2020 was US$1,047 per tonne, higher by 4% y-o-y. The Cost of Production (COP) during the year beneﬁted from declining imported coal prices and higher linkage coal.

The COP increase reﬂects higher mine development expense, lower ore grades and volume, lower acid credits, higher cement prices, and electricity duty on captive power plants which was hiked from ₹0.40

to ₹0.60 per unit starting July 2019, partly oﬀset by lower coal costs.

Government levies amounted to US$ 355 per tonne (FY2019: US$389 per

Particulars

Unit costs (US$ per tonne)

Zinc (including royalty)

1,373

1,381

(1)

Zinc (excluding royalty)

1,047

1,008

tonne). This comprised mainly of royalty payments, the Clean Energy Cess, electricity duty and other taxes.

FY2020

FY2019

% change

OPERATIONAL REVIEW ZINC INDIA CONTINUED...

ZINC INDIA

FINANCIAL PERFORMANCE

Revenue for the year was ₹18,159 crore, down 12% y-o-y, primarily on account of decline in LME prices and lower volume, partly oﬀset by higher silver prices and rupee depreciation.

EBITDA in FY2020 decreased to ₹8,714 crore, down 18% y-o-y. The decrease was primarily driven by lower revenue and higher cost of production.

PROJECTS

All major projects to build capacity of 1.2 mtpa mined metal were completed during the year. Capital mine development increased by 12% to 48 km in FY2020.

At Rampura Agucha, the Shaft project was commissioned along with the associated conveyor , crusher systems and hauling from shaft through ore pass commenced in the ﬁnal quarter. This has increased haulage capacity allowing RA UG to achieve production level of 4.5 mtpa.

At Sindesar Khurd, shaft is fully integrated with mine and ore hauling was ramped up to about 70% of capacity. The second paste ﬁll plant was commissioned in June 2019, allowing the mine to operate at full production capacity.

At Zawar, India's ﬁrst ever dry tail stacking plant was commissioned in the second quarter, signiﬁcantly reducing water consumption & land

Particulars

requirement and addressing tailing dam risk. Further, the two backﬁll plants are under load trials and back ﬁlling of voids is expected to commence in Q1 FY2021. This will improve mine stability and provide an opportunity for pillar mining to remove left-out high-grade ore.

At Rajpura Dariba, the existing production shaft capacity is being upgraded from 0.7 to 1.3 mtpa to debottleneck the mine. The erection process has already commenced and is expected to complete in Q3FY2021. RD mine received the environment clearance for expansion from 1.08 to 2.0 mtpa of ore production and ore beneﬁciation from 1.2 to 2.5 mtpa. Smelter debottlenecking to expand the capacity to 1.1 mtpa was completed during the year to maintain mines/smelter synergies at higher levels of production. The Fumer plant at Chanderiya is ready to start and production is to commence in

Q1 FY2021.

Revenue

18,159

20,656

(12)

EBITDA

8,714

10,600

(18)

EBITDA margin (%)

48%

51%

EXPLORATION

Zinc India's exploration objective is to upgrade the resources to reserves and replenish every tonne of mined metal to sustain more than 20 years of metal production by fostering innovation and using new technologies. The company has an aggressive exploration program focusing on delineating and upgrading Reserves and Resources (R&R)

within its licensed areas. Technology adoption and innovations play key role in enhancing exploration success.

Zinc India's deposits remain 'open' and exploration identiﬁed a number of new targets on mining leases having potential to increase R&R over the next 12 months. Across all the sites, it increased its surface drilling to assist in upgrading Resources to Reserves.

In line with previous years, the Mineral Resource is reported on an exclusive basis to the Ore Reserve and all statements have been independently audited by SRK (UK).

On an exclusive basis, total ore reserves at the end of FY2020 totalled 114.7 million tonnes and exclusive mineral resources totalled 288.3 million tonnes. Total contained metal in Ore Reserves is 7.95 million tonnes of zinc, 2.07 million tonnes of lead and 256.2 million ounces of silver and the Mineral Resource contains 15.87 million tonnes of zinc, 5.93million tonnes of lead and 641.8million ounces of silver. At current mining rates, the R&R underpins metal production for more than 20 year.

FY2020

STRATEGIC PRIORITIES & OUTLOOK

Our primary objective remains to concentrate on enhancing overall output, cost eﬃciency of our operations and disciplined capital expenditure. Whilst the current economic environment remains uncertain our goals over the medium term are unchanged.

Our key strategic priorities include: ƒ Further ramp up of underground mines towards their design capacity, deliver increased silver output in line with communicated strategy.

ƒ Increase R&R through higher exploration activity and new mining tenements, as well as upgrade resource to reserve

ƒ Disciplined capital investments in minor metal recovery to enhance proﬁtability
ƒ Reduce cost of production to below US$1,000 per tonnes through eﬃcient ore hauling, higher volume & grades and higher productivity through ongoing eﬀorts in automation and digitization

Airborne particulate management remains a key focus in reducing lead and silica dust exposures of

THE YEAR IN SUMMARY

During FY2020, Zinc International continued to ramp up production from its ﬂagship project Gamsberg mine and achieved production of 108 kt.

Black Mountain continued to have a stable production of 66 kt. In May 2019, Skorpion experienced a major open pit failure which resulted in an ore gap of four months - which required the stoppage of the Reﬁnery from November 2019 to January 2020. The open pit failure was safely and successfully dealt with. However, further (smaller) failures have since occurred with the latest one in January 2020, sterilising a signiﬁcant portion of the open pit. This has resulted in an ore gap in excess of 10 months. Further technical studies have indicated the existence of similar such failure structures at depth. The safety of all employees is our ﬁrst value. Therefore, we have decided to cease all mining operations at Skorpion and to put the mine under care and maintenance, while studies continue to look feasible ways to make the pit safe for mining options which would allow for the extraction of the remainder of the accessible ore.

OCCUPATIONAL HEALTH & SAFETY

Regrettably, Vedanta Zinc International reported a fatality at Black Mountain Mine where Mrs. Venessa Plagg a Mining Operator was fatally injured on 10 January 2020. The mine conducted a comprehensive investigation using an independent Group-led team. The lessons learned, following a thorough investigation, have been shared across the business and initiatives have been rolled out to strengthen our practices in Housekeeping, Person-Machine Interaction, Stop & Fix non-conformances and leaders engagement focusing on critical risk controls. Signiﬁcant improvements have been made in the reduction of LTIs from 23 to 10 for the year (LTIFR FY2019: 0.96 and FY2020: 0.93).

employees. Black Mountain Mine has been approached by the Department of Mineral Resources and Energy (Regulatory Authority) to be a stakeholder in the development of National Guidelines for South Africa. We have strengthened our Employee Wellness Programmes that resulted in increased participation of employees and communities in VCT for Aids/HIV, blood donation and community sporting events. A total of 2,961 employees were screened for TB during the year.

ENVIRONMENT

Zinc International had a good environmental performance in FY2020 with no level 3 or above environmental incidents reported. The Gamsberg Nature Reserve was proclaimed as Protected area under National Environmental Management Protected Area Act, 2003 (Act No. 57 of 2003) on 5 August 2019. The Gamsberg Nature Reserve Trust was established on

6 March 2020.

PRODUCTION PERFORMANCE

Production (kt)

Total production	240	148 63
production- mined metal (kt)
BMM	66	65 1
Gamsberg	108	17* -
Reﬁned metal Skorpion	67	66 2

*Includes trial run production of 10 kt

OPERATIONS

During FY2020, total production stood at 240,000 tonnes, 62% higher y-o-y. This was primarily due to ramp up of ﬁrst phase of Gamsberg expansion plan.

Production at Skorpion stood at 67,000 tonnes during the year, slightly higher y-o-y. The plan was to produce 130,000 tonnes during the year which was predominantly impacted by a multiple bench slope failure of approximately 400 kt material on the western pushback of the open pit on 9th May 2019 and further in January 2020 by a wedge failure which extended the old slope failure to south area of mine. At BMM, production was in line with that of previous year. In spite of a slight decrease in grades (5.2% versus 5.3%), BMM performance has improved in FY2020 with higher recoveries and throughput. This was however oﬀset

Total production 240,000 tonnes, 63% higher y-o-y.

FY2020

FY2019

% change

by lower ore production due to suspension of mining operations for 16 days during Q4FY20 on account of a fatality. Gamsberg's production was at 108,000 tonnes as the operation continues to ramp up with improved performance every quarter-Q1: 23,000 tonnes, Q2: 24,000 tonnes, Q3: 31,000 tonnes and Q4: 30,000 tonnes (impacted by COVID-19). Mining has fully ramped up to 4 mtpa capacity and ~1.8 Mt of healthy ore stockpile has been built ahead of plant. Crusher is consistently running on throughput of ~700 tph (better than design of 685 tph) and milling run rates have improved signiﬁcantly (average for the year was 430 tph versus 501 tph design). Recovery continues to be a focus area as the plant ramps up and is stable.

At both BMM and Gamsberg, production was also slightly impacted by COVID-19 lockdown.

OPERATIONAL REVIEW ZINC INTERNATIONAL CONTINUED...

ZINC INTERNATIONAL

UNIT COSTS

The unit cost of production decreased by 13% to US$1,665 per tonne, from US$1,912 per tonne in the previous year. This was mainly driven by company's strong regime to reduce the cost and including reduction through higher productionat Gamsberg, lower usage of purchased oxides at Skorpion Zinc, lower Sulphur prices, local currency depreciation, partially oﬀset

Particulars

Zinc (US$ per tonne) unit cost

by higher treatment and reﬁning charge, lower copper credits and annual inﬂation.

FY2020

FY2019

% change

1,665

1,912

(13)

FINANCIAL PERFORMANCE

During the year, revenue increased by 14% to ₹3,128 crore, driven by higher volumes compared to FY2019, partially oﬀset by lower price realisations. EBITDA decreased by 46% to ₹380 crore, from ₹698 crore in FY2019 mainly on account of lower price realization partially oﬀset by improved cost and higher volume.

Particulars

Revenue

3,128

2,738

EBITDA

380

698

(46)

EBITDA margin

12%

25%

(₹ crore, unless stated)

FY2020

FY2019

% change

skorpion Reﬁnery Conversion: Project activities were resumed due to the LOM getting completed at Skorpion and also being the fastest way to process Gamsberg concentrates. The previously completed feasibility study is currently being updated and based on this a project decision will be taken in the next quarter.

PROJECTS

swartberg phase II:

Mine plan and design is complete. Ore reserves have increased from 2.6 million tonnes to 25.4 million tonnes in FY20.

gamsberg phase II:

The previously completed Phase 2 feasibility study was updated based on the revised mine design incorporating updated geological model post an extensive drilling programme. The new 8 mtpa mine design is complete. 54Mt Reserve has been added post completion of Feasibility which can result in additional 200ktpa MIC production over and above current production. Gamsberg Smelter-Substantial progress was made with respect to the environmental Impact Assessment process with public participation meetings getting completed and formal Environment applications submission to the government authorities.

EXPLORATION

During the year, we made gross additions of 71.2 million tonnes of ore and 1.6 million tonnes of metal to R&R, after depletion. As at 31 March 2020, combined mineral resourcesand ore reserves were estimated at 521.4 million tonnes, containing 28 million tonnes of metal. The reserves and resources support a mine life of more than 30 years.

Mill at Gamsberg

STRATEGIC PRIORITIES & OUTLOOK

Zinc International continues to remain focused to improve its YoY Production by sweating its current assets beyond its design capacity, debottlenecking the existing capacity and adding capacity through Growth Projects. Our Immediate priority is to ramp up the performance of our Gamsberg Plant at Designed capacity and simultaneously develop debottlenecking plan to increase Plant capacity by 10% to 4.4Mt Ore throughput. Likewise, BMM continues to deliver stable Production performance and focus is to debottleneck its Ore volumes from 1.6Mt to 1.8Mt. Skorpion is expected to remain in 'Care and Maintenance' for H1 FY21 while management is

ƒ Continue to improvise Business case of Gamsberg Phase II and Gamsberg Smelter Project through Government support, Capex and Opex reduction

assessing feasible & safe mining methods to extract Ore from Pit 112. Zinc International continues to drive cost reduction programme to place Gamsberg operations on 1st Quartile of global cost curve with COP< US$1000 per tonne.

In addition to above, Core Growth strategic priorities include:

ƒ Complete approval process and commence project activities of Swartberg Phase II Project and Skorpion Reﬁnery conversion Project in FY2021

THE YEAR IN SUMMARY

During FY2020, our focus was on the growth projects driven by gross capex of US$3.2 billion to increase volumes from our proliﬁc operating blocks. In pursuit of our vision to contribute to 50% of India's domestic crude oil production, we have increased our block acreage by acquiring 51 blocks in Open Acreage Licensing Policy (OALP) and two blocks in Discovered Small Fields (DSF).

The acquisition has established us as one of the largest private acreage holders in the country, with a tenfold jump in acreage from 6,000 sq km in August 2018 to ~65,000 sq km.

The PSC blocks oﬀer a rich project portfolio comprising enhanced oil recovery, tight oil, tight gas, facility

OCCUPATIONAL HEALTH & SAFETY

There were ﬁfteen Lost Time Injuries (LTIs) in FY2020. LTIFR stood at 0.3 per million man hours (FY2019: 0.3 per million man hours) amidst increased development activities. We strengthened the HSE culture by introducing Visible Felt Leadership.

Important recognition and awards during the year are as below:

ƒ Mangala oil ﬁeld received ﬁrst prize - Overall performance and rolling trophy for Best Performing Fire Fighting Unit during Mines Safety Week.
ƒ Raageshwari Oil & Gas Mine received First Prize in 8th FICCI Safety Systems Excellence Award
ƒ HSE Excellence Safety Champion of the year Award, at Synnex HSE Excellence Summit and Safety Awards in New Delhi.
ƒ '5Star' by British Safety Council for excellence in HSE Management for Pipeline Operation
ƒ '5Star' in 'Par Excellence' rating by Quality Circle Forum of India for Raageshwari Oil & Gas Mine.
ƒ '5Star' by Quality Circle Forum of India for Bhagyam, NI, Radhanpur, Viramgam and Bhogat terminal.
ƒ Suvali oﬀshore site received Genentech Safety Award 2019

upgradation and exploration and appraisal prospects. These projects are being executed under an Integrated Development strategy involving leading global oilﬁeld service companies and are on track to deliver near-term additional volumes. During the year 136 wells were drilled and 41 wells hooked up.

In OALP blocks, our objective is to reduce the cycle time from exploration to production. We have implemented the largest onshore Full Tensor Gravity Gradiometry™ (FTG) airborne survey in India to optimise time and cost-intensive seismic data acquisition to fast track drilling. The seismic acquisition programme has been initiated and in Assam and mobilisation of the crew is underway in Rajasthan.

Production sharing contracts (PSC) signed for Ravva block extended for 10 years

Ensuring safety standards at Cairn Oil & Gas

ENVIRONMENT

Our Oil & Gas business is committed to protect the environment, minimise resource consumption and drive towards our goal of 'zero discharge'.

We have secured position in sustainability front runners' category with scoring 912 out of 1200 in recently assessed Sustainability 4.0 Award 2020 jointly instituted by Frost & Sullivan and TERI.

Highlights for FY2019-20 are:

ƒ Environmental laboratory at Mangala Processing Terminal (MPT), has been accredited by National Accreditation Board for Testing and Calibration Laboratories
ƒ Disposal of drilling & oily waste through co-processing at cement industries: ~35,700 MT in FY2020
ƒ Recycling and reusing of produced water resulting into reduced water abstraction: 96%. IOGP av. ~80%
ƒ Natural gas was adopted at Raageshwari Gas Terminal for power generation, thereby eliminating ﬂaring of gas emissions by ~17, 000 tonnes of CO2e/annum.
ƒ Biodiversity Conservation:
- a. Green belt development by only planting indigenous species in Rajasthan ﬁeld, promoting
  plantation of desert-native
  species
- b. Carbon sequestration-plantation in Rajasthan ﬁeld: ~23,156 tonnes of CO2e

OIL & GAS

PRODUCTION PERFORMANCE

Particulars

*Includes net production of 483 boepd from the KG-ONN block, which is operated by ONGC. Cairn holds a 49% stake.

OPERATIONS

Unit

Average gross production across our assets was 8% lower y-o-y at 172,971 boepd. The company's production from the Rajasthan block was 144,260 boepd, 7% lower y-o-y. The decrease was primarily due to natural reservoir decline and maintenance shutdown of Mangala Processing Terminal (MPT). The decline was managed by gains accruing from ramp-up of gas facilities and the new wells brought online. Production from the oﬀshore assets, was at 28,711 boepd, 13% lower y-o-y, due to natural ﬁeld decline.

Production details by block are summarized below.

Rajasthan Block

Gross production from the Rajasthan block averaged 144,260 boepd, 7% lower y-o-y. This decrease was primarily due to the natural reservoir decline and maintenance shutdown of the Mangala Processing Terminal (MPT). The MPT Shutdown was carried out in February 2020 for production enhancement, reliability improvement and asset integrity enhancements. All the planned jobs during the shutdown were completed ahead of the schedule, with lower production losses vis-à-vis plan.

The decline was partially oﬀset by increase in gas production through

FY2020

FY2019

% change

Gross operated productionBoepd

172,971

188,784

(8)

Rajasthan

Boepd

144,260

155,903

(7)

Ravva

Boepd

14,232

14,890

(4)

Cambay

Boepd

14,479

17,991

(20)

Oil

Bopd

154,677

178,207

(13)

Gas

Mmscfd

109.8

63.5

Net production - working interest*Boepd

110,459

119,798

(8)

Oil

Bopd

99,709

114,214

(13)

Gas

Mmscfd

64.5

33.5

Gross production

Mmboe

63.3

68.9

(8)

Working interest productionMmboe

40.4

43.7

(8)

early production facility and from new wells brought online as part of Mangala inﬁll, Aishwariya Barmer Hill and production optimisation activities.

At Rajasthan, 132 wells have been drilled, of these 39 wells have been brought online as part of the growth projects during FY2020. Early gas production facility was brought online and ramped up to its design capacity of 90 mmscfd to supplement the existing gas infrastructure. Total Gas production from Raageshwari Deep Gas (RDG) averaged 100.1 million standard cubic feet per day (mmscfd) in FY2020, with gas sales, post captive consumption, at 79.1 mmscfd.

On 26th October 2018, the Government of India, acting through the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, has granted its approval for a ten-year extension of the PSC for the Rajasthan block, RJ-ON-90/1, subject to certain conditions, with eﬀect from 15 May 2020.

A Cairn Oil & Gas employee

The applicability of the Pre-NELP extension policy to the RJ Block PSC is currently sub-judice.

Ravva Block

The Ravva block produced at an average rate of 14,232 boepd, lower by 4% y-o-y. This was primarily due to natural ﬁeld decline partially oﬀset by the two new wells bought online through Ravva drilling campaign commenced as a part of growth project during FY2020. On 11th March 2019, the Government of India, acting through the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, has granted its approval for a ten-year extension of the PSC for the Ravva block, subject to certain conditions, with eﬀect from 29 October, 2019.

Cambay Block

The Cambay block produced at an average rate of 14,479 boepd, lower by 20% y-o-y. This was primarily due to natural ﬁeld decline partially oﬀset by production optimisation measures.

PRICES

Crude oil price averaged US$60.9 per barrel, compared to US$70.4 per barrel in previous year driven by multiple reasons, shifting the world from the era of supply disruption to plenty. The year started with OPEC-led production cuts, countered by the US President's request to OPEC for a production increase to bring down fuel costs. Tensions were heightened at various points in the year in the Middle East with attacks on oil tankers oﬀ the coast of the UAE, and several drones strikes against Saudi Arabian oil facilities, leading to concerns over oil supply disruptions. Trade tensions between the US and

FINANCIAL PERFORMANCE

Revenue for FY2020 was 4% lower y-o-y at ₹12,661 crore (after proﬁt and royalty sharing with the Government of India), owing to fall in oil price realisation and lower volumes partially oﬀset by one oﬀ for past exploration cost recovery of ₹1,276 crore. EBITDA of FY2020 was at ₹7,271 crore, lower by 5% y-o-y in line with the lower revenue.

The Rajasthan water ﬂood operating

A. GROWTH PROJECTS DEVELOPMENT

The Oil & Gas business has a robust portfolio of development opportunities with the potential to deliver incremental volumes.

In order to execute these projects on time and within budget, we have devised an integrated project development strategy, with an in-built risk and reward mechanism. This new strategy is being delivered in partnership with leading global oilﬁeld service companies.

MANGALA INFILL, ENHANCED OIL RECoVERy (EoR) AnD AlkAlInE suRFACTAnT polymER (Asp)

The ﬁeld is currently under full ﬁeld polymer injection. In addition, to increase the ultimate oil recovery and support production volumes, we are executing a 45-well inﬁll drilling campaign in Mangala ﬁeld. Till March 2020, 45 wells have been drilled and of these 35 wells are hooked up.

China further raised the geopolitical tensions, but eventually the US -China trade deal and planned OPEC production cuts in CY2020 led to a steady rally in crude prices.

However, in March 2020 in order to limit the impact of economic contraction caused by COVID-19 on oil demand, OPEC+ failed to reach an agreement to cut oil supply and on 7 March 2020, Saudi Arabia slashed its oil prices to gain market share. As a result, oil prices fell to ~US$17

Particulars

Average Brent prices -US$/barrel

cost was US$6.1 per barrel in FY2020 compared to US$5.1 per barrel in the previous year, primarily driven by increase maintenance and production enhancement initiatives. Overall, the

Particulars

Revenue

12,661

13,223

(4)

EBITDA

7,271

7,656

(5)

EBITDA margin (%)

Going forward, the Alkaline surfactant polymer (ASP) project at Mangala will enable incremental recovery from the proliﬁc Mangala ﬁeld.

The project entails drilling wells and developing infrastructure facilities at the MPT. Drilling campaign is already under progress and the contract for the ASP surface facility is yet to be awarded. Till March 2020, 60 wells have been drilled.

per barrel towards the end of the year, the lowest level since 2002. In April, OPEC and its partners agreed to signiﬁcant supply cut which might help to reduce the imbalance but is unlikely to prevent uncertainty regarding product demand. Looking forward, the recent events will continue to have an impact on the oil price volatility with downside risks until the global economies come out of lockdown and all OPEC and partner countries act collectively.

FY2020	FY2019	% change
60.9	70.4	(13)

blended Rajasthan operating costs (including polymer) increased to US$8.7 per barrel compared to US$7.6 per barrel in the previous year.

FY2020

FY2019

% change

BHAGYAM & AISHWARYA ENHANCED oIl RECoVERy (EoR)

The enhanced oil recovery project at Bhagyam and Aishwariya is progressing as per plan. Till March 2020, 28 wells in Bhagyam and 14 wells in Aishwarya have been drilled, of these 19 wells in Bhagyam and 8 wells in Aishwarya are hooked up. Surface facility development for polymer implementation has commenced and polymer injection is ongoing.

OPERATIONAL REVIEW OIL & GAS CONTINUED...

OIL & GAS

TIGHT OIL AND GAS PROJECTS

Tight oil: Aishwariya Barmer hill (ABH)

ABH is the ﬁrst tight oil project to monetise the Barmer hill potential and drilling of the project started in Q1FY2019. All 39 wells have been successfully drilled and seven wells are hooked up. Surface facility is under construction and to be commissioned in near term.

Tight gas: Raageshwari deep gas (RDG) development

Gas development in the RGD ﬁeld continues to be a strategic priority.

OTHER PROJECTS

Satellite Field Development

In order to monetise the satellite ﬁelds, an integrated contract for the appraisal and development activity through global technology partnership has commenced. Till March 2020, 13 wells have been drilled.

Surface Facility Upgradation

The MPT facility upgradation is progressing in line with the schedule to handle incremental liquids. Intra-ﬁeld pipeline augmentation project has been completed. The MPT surface facility augmentation project is expected to be commissioned in near term. The project will lead to the expansion in the liquid handling capacity by 30%.

An employee at the Mangala Processing Terminal, Barmer

Early production facility has been commissioned and ramped up to its designed capacity of 90 mmscfd.

Further construction of gas terminal through integrated contract is expected to deliver additional ~90 mmscfd of gas production in near term. This will ramp up the overall Rajasthan gas production to ~240 mmscfd.

In order to realize the full potential of the gas reservoir, contract for drilling of 42 wells has been awarded and till March 2020, 25 wells have been drilled.

Ravva development

An integrated development campaign has been commenced. Till March 2020, 4 wells have been drilled and 2 wells are hooked up.

B. EXPLORATION AND APPRAISAL RAjAsThAn - (BloCk Rj-on-90/1)

Rajasthan exploration

The Rajasthan portfolio provide access to multiple play types with oil in high permeability reservoirs, tight oil and tight gas. We are evaluating opportunities to commence the drilling program.

Tight Oil Appraisal

The appraisal programme of four ﬁelds (Vijaya & Vandana, Mangala Barmer Hill, DP and Shakti) entails the drilling and extended testing of 10 new wells with multi-stage hydraulic fracturing. Till March 2020, seven wells have been drilled.

Open Acreage Licensing Policy (OALP)

Under the Open Acreage Licensing Policy (OALP), revenue-sharing contracts have been signed for 51 blocks located primarily in established basins, including some optimally close to existing infrastructure.

Our objective is to reduce cycle time from exploration to production. We have implemented an innovative technology - Full Tensor Gravity Gradiometry™ (FTG) airborne survey to prioritise area of hydrocarbon prospectivity. This is the largest FTGsurvey programme in India covering an area of 1,200 LKM in Assam blocks and 8,000 LKM in Kutch blocks.

The Seismic acquisition programme has commenced in Assam, Kutch and mobilisation of the crew is underway in Rajasthan, Cambay and Oﬀshore blocks. Further, we have applied Satellite-based Sub-Terrain Prospecting (STeP®) in Assam, which includes eight remote sensing & computational technologies within a six-month time frame covering an area of 3,650 sq km. This is the ﬁrst application in oil & gas exploration in India to provide information to optimize & prioritize areas for exploration focus.

Discovered Small Fields (DSF2)

Discovered Small Fields (DSF2) provide synergy with existing oil & gas blocks in the vicinity. These blocks were assessed based on the resource potential and proximity to infrastructure in prioritised sedimentary basins across India.

Two discovered small ﬁelds named as Hazarigaon and Kaza gas ﬁelds, located in Assam and Krishna Godavari basins, respectively, have been awarded under DSF2.

STRATEGIC PRIORITIES & OUTLOOK

Vedanta's Oil & Gas business has a robust portfolio mix comprising of exploration prospects spread across basins in India, development projects in the proliﬁc producing blocks and stable operations which generate robust cash ﬂows. The key priority ahead is to deliver our commitments from our world class resources with

'zero harm, zero waste and zero discharge:

ƒ Commission the liquid handling capacity upgrade facility and new gas processing terminal to deliver incremental volume

ƒ Increase recovery through full ﬁeld injection in Bhagyam & Aishwariya Fields

ƒ Unlock the potential of the exploration portfolio comprising of OALP and PSC blocks

ƒ Continue to operate at a low cost- base and generate free cash ﬂow post-capex

THE YEAR IN SUMMARY

OCCUPATIONAL HEALTH & SAFETY

In FY2020, the aluminium smelters achieved India's highest production of 1.9 million tonnes (including trial run). It has been a remarkable year in our cost reduction journey across all levers. The input commodity costs have been beneﬁted by falling alumina price indices from the all-time highs in the last year. We observed similar trends in caustic and petroleum coke prices. The coal materialisation from Coal India improved signiﬁcantly this year.

The improvement in operational metrics across our reﬁnery, smelters and power plants have further contributed to cost reduction. We continue to focus on optimising our controllable costs and improving our price realisation to improve proﬁtability in a sustainable way.

The hot metal cost of production for FY2020 was US$1,690 per tonne, on account of structural improvements in the cost.The Q4 FY2020 hot metal cost of production stood at US$1,451 per tonne. We also achieved record production of 1.81 million tonnes at the alumina reﬁnery through continued debottlenecking. We continue to explore the feasibility of expanding the reﬁnery's capacity, growing through a phased programme and subject to bauxite availability.

This year, we experienced total 28 LTIs at our operations with a LTIFR of

We report with deep regret two fatalities during the year, one at our operations in Jharsuguda as the result of a rail accident at our smelter rail logistics and the other at Chotia coal mines of BALCO. We investigated both incidents thoroughly and shared the lessons learned across the business.

0.40. To enhance competencies of our executives, engineers and supervisors of business partners, we have imparted Making Better Risk Decision (MBRD) and Safety leadership trainings. Programmes were also conducted for managing safety in high-hazard work areas like conﬁned space, vehicle and driving and working at height through external competent agency as a measure to prevent injuries and minimise potential risks in going forward.

Moreover, to sensitize our employees towards our core values of 'Care', we regularly carry out programmes such as 'Suraksha ki Goth' and 'Suraksha Charcha'. The worldwide outbreak of COVID-19 has not impacted our operations in FY2020. As part of our Corporate Social Responsibility, our Business Units worked with the government and stakeholders including local community to provide relief measures. Mobile Health units were used for creating awareness with a clear emphasis on the importance of social distancing and maintaining personal hygiene. All our Business units provided supportto District & State Health Services in terms of medical equipment including hand sanitizers, medicines, reagents, PPEs such as surgical masks, gloves, gowns and manpower such as housekeeping staﬀ, security personnel, medical personnel etc. in addition to contribution to government's relief fund for COVID-19. The SHGs associated with our facility at Lanjigarh and Jharsuguda were involved in preparing masks thereby creating livelihood while helping reduce the impact of COVID-19. Fire brigades at the facilities have been deployed to sanitize the premise and in the core villages near our facilities. The facilities are providing food to migrant workers, identiﬁed community groups, police personnel etc. as part of our CSR initiatives.

ENVIRONMENT

Jharsuguda has recycled 14.7% of the water used in the year FY2020 while BALCO has recycled nearly 10.2%. There has been a signiﬁcant improvement in our water consumption of 0.69 m3/MT (FY2019: 0.72 m3/MT) at BALCO. We are consistently focusing on improving the recycled water percentage in future.

Management of the hazardous waste like spent pot line, aluminium dross, ﬂy ash, etc. are material waste management issue for the Aluminium and Power business. Our BALCO unit disposed 3,224 MT spent pot lining and 6,129 MT of aluminium dross, to authorized recyclers this year. Both BALCO and Jharsuguda have been able to dispose 100% of its ﬂy ash generation at the units. In our Lanjigarh operations, 98.4% of lime grit has been utilisied in FY2020 (FY2019: 97%).

India's highest production, 1.9 million tonnes in FY2020

ALUMINIUM

PRODUCTION PERFORMANCE

Production (kt)

Alumina - Lanjigarh	1,811	1,501 21
Total aluminium production	1,904	1,959 (3)
Jharsuguda I	543	545 -
Jharsuguda II1	800	843 (5)
BALCO I	256	260 (2)
BALCO II	305	311 (2)

FY2020

FY2019

(1) Including trial run production of nil in FY2020 versus 63 kt in FY2019

% change

Employees engaging in conversation in oﬃce

AlumInA REFInERy: lAnjIgARh

At Lanjigarh, production was 21% higher y-o-y at 1.81 million tonnes, primarily through continued plant debottlenecking. We continue to evaluate the possible expansion of the reﬁnery, subject to bauxite availability.

ALUMINIUM SMELTERS

We ended the year with production of 1.9 million tonnes (including trial run). Both smelters at BALCO and Jharsuguda continued to show consistent performance. We continue to evaluate Line 4 of Jharsuguda II smelter.

COAL LINKAGES

We continue to focus on the long-term security of our coal supply at competitive prices. We added 3.2 mtpa of coal linkages through Tranche IV and its materialisation began in March 2019. The captive coal block, Chotia, at BALCO operating at full capacity. We emerged as the highest bidder for Jamkhani coal block and have signed the Coal Mine Development and Production Agreement with the Government of India. The Jamkhani coal block is currently rated at 2.6 mtpa. This takes our coal security to 72% of our requirements.

PRICES

Average LME prices for aluminium in FY2020 stood at US$1,749 per tonne, 14% lower y-o-y. LME prices hovered between US$1,700 per tonne - US$1,800 per tonne band for most of the year, showing a sharp decline in

Particulars

Average LME cash settlement prices (US$ per tonne)

the last month of FY2020. LME was stabilised after sanctions against UC Rusal were lifted and US-China trade war concerns receding. However, uncertainties over the impact of COVID-19 have caused prices to plummet in recent months.

FY2020	FY2019	% change
1,749	2,035	(14)

Aluminum Rolls

UNIT COSTS

During FY2020, the COP of alumina improved to US$275 per tonne, due to beneﬁts from increase in locally sourced bauxite, continued debottlenecking, improved plant operating parameters and rupee depreciation. This was further backed by falling input commodity prices (mainly caustic soda and imported bauxite). In FY2020, the total bauxite requirement of ~5.3 million tonnes was met by captive mines (9%), Odisha (49%) and imports (42%). In the previous year, the bauxite supply mix was captive mines (10%), Odisha (31%), other domestic sources (20%) and imports (39%).

In FY2020, the COP of hot metal at Jharsuguda was US$1,686 per tonne, down by 13% from US$1,970 in FY2019. The hot metal COP at BALCO fell to US$1,700 per tonne, down

by 13% from US$1,962 per tonne in FY2019. This was primarily driven by falling global input raw material indices across alumina, carbon, caustic etc. The global alumina price indices fell from an all-time high of US$590 per tonne in September 2018 to US$280 per tonne levels in Q4 FY2020. Caustic prices also followed a similar trend. The power cost was lower as materialisation of domestic coal supply from Coal India improved, without any major supply disruptions witnessed unlike the previous year. It was further helped by higher

Particulars

Alumina cost (ex-Lanjigarh)	275	322 (15)
Aluminium hot metal production cost	1,690	1,967 (14)
Jharsuguda CoP	1,686	1,970 (14)
BALCO CoP	1,700	1,962 (13)

Lanjigarh alumina production, operational improvements at power plants and currency depreciation.

The hot metal cost of production for FY2020 was US$1,690 per tonne, signiﬁcantly lower compared to previous year on account of structural improvements in the cost due to increase captive alumina production from the Lanjigarh reﬁnery, improved coal materialisation, better processing costs and falling input commodity costs. Coal materialisation has been good throughout the year.

(US$ per tonne)

FY2020

FY2019

% change

FINANCIAL PERFORMANCE

During the year, revenue decreased by 9% to ₹26,577 crore, driven primarily by falling LME Aluminium prices.

EBITDA was lower at ₹1,998 crore (FY2019: ₹2,202 crore), mainly due to improved hot metal cost of production & true up of RPO liability partially oﬀset by lower sales realisations.

STRATEGIC PRIORITIES & OUTLOOK

In wake of COVID-19 concerns, the outlook for the initial months of FY2021 is volatile with aluminium consumers either reducing or shutting production across geographies. The global maritime supply chain is also running with delayed timelines. However, all our alumina and aluminium facilities have been categorized as essential services by government authorities and continue to operate at current production levels. Our facilities have switched to limited manning, in line with government guidelines and social distancing norms. We look to dynamically adapt our product mix to cater to changing market requirements. The management is watchful of changing global and local

Particulars

Revenue

26,577

29,229

(9)

EBITDA

1,998

2,202

(9)

EBITDA margin (%)

scenarios and is actively charting its new course with health and safety as its ﬁrst priority followed by its business objectives.

The input commodity prices continue to be low and we are looking at ways to continuously optimise our costs, while also increasing the price realisation in order to improve proﬁtability in a sustainable way.

At our power plants, we are also working towards reducing Gross Caloriﬁc Value (GCV) losses in coal as well as improving plant operating parameters which should deliver higher Plant Load Factors (PLFs) and a reduction in non-coal costs. We look forward to operationalising our Jamkhani coal block in the last quarter of FY2021.

(₹ crore, unless stated)

FY2020

FY2019

% change

Whilst the current market outlook remains uncertain, our core strategic priorities include:

ƒ Focus on the health & safety of our employees, our business partners and customers
ƒ Deliver Lanjigarh reﬁnery production growth and stable aluminium production
ƒ Enhance our raw material security of bauxite & alumina
ƒ Improve coal linkage security, better materialisation
ƒ Operationalize Jamkhani coal block;
ƒ Improve our plant operating parameters across locations; and
ƒ Improve realisations by improving our value-added product portfolio

THE YEAR IN SUMMARY

FY2020 was a signiﬁcant year for the Talwandi Sabo (TSPL) power plant, where we achieved plant availability of ~91%. The plant load factor (PLF) at BALCO were also higher on account of better coal availability.

OCCUPATIONAL HEALTH & SAFETY

The key focus area for this year was to improve leadership and develop a culture of care for which we launched the programme of 'Visible Felt Leadership'. This allowed our experienced leaders to share their valuable knowledge with the workers on site through direct interactions thereby minimising the gap.

In FY2020, we did not have any fatalities and our LTIFR was 1.51.

ENVIRONMENT

One of the main environmental challenges for power plants is the management and recycling of ﬂy ash. At all our operations, we have a sustained 100% utilization of ﬂy ash.

Golder Associates has completed the review of our ash dyke structures and we are in process of implementing their recommendations. TSPL has recycled 14% of the water used. We are further working to enhance the recycled water percentage throughmeasures planned during FY2021.

TSPL Facility

PRODUCTION PERFORMANCE

Particulars

Total power sales (MU)	11,162	13,515 (17)
Jharsuguda 600 MW	776	1,039 (25)
BALCO 300 MW*	1,726	2,168 (20)
MALCO#	-	- -
HZL wind power	438	449 (3)
TSPL	8,223	9,858 (17)
TSPL - availability	91%	88% -

FY2020

FY2019

% change

#continues to be under care and maintenance since 26 May 2017 due to low demand in Southern India.

*We have received an order dated 1 January 2019 from Chhattisgarh State Electricity Regulatory Commission for conversion of 300MW IPP to CPP. During the Q4FY2019, 184 units were sold externally from this plant.

Greater than 100% utilisation of ﬂy ash at all our operations.

OPERATIONAL REVIEW POWER CONTINUED...

POWER

OPERATIONS

During FY2020, power sales were 11,162 million units, 17% lower y-o-y. Power sales at TSPL were 8,223 million units with 91% availability in FY2020.

At TSPL, the Power Purchase Agreement (PPA) with the Punjab State Electricity Board compensates us based on the availability of the plant. The 600 MW Jharsuguda powerplant operated at a lower PLF of 11% in FY2020.

The 300 MW BALCO Independent Power Plant (IPP) operated at a PLF of 71% in FY2020. The MALCO plant continues to be under care and maintenance, eﬀective from 26 May 2017, due to low demand in Southern India.

VL-J_Cast House Control Room

UNIT SALES AND COSTS

Average power sale prices, excluding TSPL, increased by 9% to ₹3.6 per kWh. This was mainly due better prices in the open access market. During the year, the average generation cost was lower at ₹2.5 per kWh (FY2019: ₹2.9 per kWh), driven mainly by a decrease in coal prices and improved linkage materialisation.

In FY2020, TSPL's average sales price was lower at ₹3.7 per kWh (FY2019: ₹4.1 per kWh), and power generation cost was lower at ₹2.7 per kWh (FY2019: ₹3.1 per kWh).

Particulars

Sales realisation (₹/kWh)1	3.6	3.4 9
Cost of production (₹/kWh)1	2.5	2.9 (16)
TSPL sales realisation (₹/kWh)2	3.7	4.1 (10)
TSPL cost of production (₹/kWh)2	2.7	3.1 (13)

(1) Power generation excluding TSPL
FY2020
FY2019
% change
(2) TSPL sales realisation and cost of production is considered above, based on availability declared during the respective period

FINANCIAL PERFORMANCE

EBITDA for the year was 8% higher y-o-y at ₹1,649 crore mainly because of lower cost of production due to improved coal prices and supply in the domestic market which resulted in higher linkage materialisation.

During FY2020, TSPL realised ₹1,002 crores from PSPCL on account of Gross Caloriﬁc Value matter resolution basis Hon'ble Supreme Court order.

Particulars

Revenue

5,860

6,524

(10)

EBITDA

1,649

1,527

EBITDA margin (%)

(₹ crore, unless stated)

FY2020

FY2019

% change

*Excluding one-oﬀs

STRATEGIC PRIORITIES & OUTLOOK

During FY2021, we will remain focused on maintaining the plant availability of TSPL and achieving higher plant load factors at the BALCO and Jharsuguda IPPs.

Our focus and priorities will be to: ƒ Resolve pending legal issues and recover aged power debtors

ƒ Achieve higher PLFs for the

Jharsuguda and BALCO IPP

ƒ Improve power plant operating parameters to deliver higher PLFs/ availability and reduce the non-coal cost

TSPL Facility, Side View

THE YEAR IN SUMMARY

Production of saleable ore at Karnataka stood at 4.51 wet million tonnes. With the order of Central Empowered Committee (Supreme Court appointed body) in March 2020, our annual mining capacity has been increased up to 5.89 mtpa. In line with this, the Government of karnataka allocated the production quantity of 4.82 wet million tonnes for the current year FY2020 onwards.

Meanwhile, operations in Goa remained in suspension in FY2020 due to a state-wide directive from the Supreme Court. However, we continue to engage with the Government to secure a resumption of mining operations.

OCCUPATIONAL HEALTH & SAFETY

In our journey towards 'zero harm', Iron Ore Business (IOB) had a fatality free FY2020. The LTIFR was 0.44 (FY2019: 0.30). Reporting of leading indicators has signiﬁcantly improved, post the launch of Safety Mobility App, which has a real-time incident-reporting feature.

Iron Ore business has implemented a series of initiatives to improve its safety performance, including: deployment of more than 100 Safety Grid Owners across all units; focused training and certiﬁcation programme by British Safety Council for Grid Owners; inclusion of business partners in Visible Felt Leadership schedules; '5S' Audits at regular intervals; identiﬁcation and periodic review of safety procedures of all critical safety tasks; development

Employees planting saplings at Amona temple

of Level 2 Crane champions; Auto sampling and alarm systems for conﬁned space entries; and development of internal trainers on defensive driving to improve vehicle and driving standards.

We have an attractive rewards & recognition scheme for safe performance. Additionally, there is an exclusive reward scheme for Grid Owners who have put exceptional eﬀort in creating a safe workplace.

With the rising COVID-19's positive cases and deaths across the nation, top management team of Iron Ore Business is dedicated to take preventive actions to restrict spread of the COVID-19 among our employees and business partners.

A central COVID-19 taskforce was constituted under the guidance of our CEO and unit-wise, cross-functional teams for implementation of all the preventive and precautionary measures. Travel policy was issued directing to avoid any kind of personal and business travel unless completely unavoidable. Activities like cold fumigation for common areas were carried out. There were restrictions for entry of visitors as well as employees coming from outstation. We ensured necessary stock of medicines, Personal Protective Equipment (PPEs) as well as sanitisers, Hazmat suits, masks and gloves are maintained. All meetings were conducted through conference call or telepresence. Sesa Goa Iron Ore Value Added Business (VAB), was awarded the prestigious 'Gomant Sarvocha Suraksha Puraskar' at Green Triangle Safety awards for outstanding performance in occupational health & safety.

ENVIRONMENT

In our journey towards 'zero discharge', we recycle and reuse almost all of the wastewater we generate at VAB, except the non-contact type condenser cooling water of the power plant, which is cooled and treated before discharging into the Mandovi river as per the consent to operate granted by Goa State Pollution Control Board.

At VAB, we have installed continuous emission monitoring systems in all the process stacks, which areconnected to State Pollution Control Board. New bag house with advanced design have been installed for reducing fugitive emission at ladle dumping chamber of blast furnace for eﬃcient dust control mechanism.

A storm water management plan has been executed by building multiple settling ponds across our Goa & Karnataka operations. At Karnataka, the organisation has constructed 38 check dams, seven settling pond and two harvesting pits having a rainwater harvesting potential of 275,805 m3 annually. Additionally, it has de-silted 10 nearby village ponds increasing their rainwater harvesting potential by 75,629 m3/annum.

During FY2020, ~3.6 Ha of mining dump slope was covered with geotextiles to prevent soil erosion and mine reclamation with natural species of ~50,000 saplings. At Karnataka, operations to reduce water consumption without aﬀecting the eﬀectiveness of our dust suppression measures are underway with latest technologies like the use of mist cannons, environment-friendly dust suppressants and others. These initiatives have helped us in water saving of 12%. At VAB we have implemented projects to reduce thermal energy consumption through coke and coke breeze consumption and various electrical energy reduction projects such as optimization of compressed air, replacement of conventional lamp with LED lamps and other projects to reduce speciﬁc energy consumption. Our VAB unit won "Energy Eﬃcient Unit Award" at CII National Energy Management Awards at Hyderabad.

Annual mining capacity increased upto 5.89 mtpa in Karnataka.

OPERATIONAL REVIEW IRON ORE CONTINUED...

IRON ORE

PRODUCTION PERFORMANCE

Particulars

Production (dmt)
Saleable ore	4.4	4.4 -
Goa	-	0.2 -
Karnataka	4.4	4.1 6
Pig iron (kt)	681	686 (1)
Sales (dmt)
Iron ore	6.6	3.8 73
Goa	0.9	1.3 (33)
Karnataka	5.8	2.6 125
Pig iron (kt)	666	684 (3)

FY2020

FY2019

% change

OPERATIONS

At Karnataka, production was 4.4 million tonnes, 6% higher y-o-y. Sales in FY2020 were 5.8 million tonnes, 125% higher y-o-y due to an increase in production and stock liquidation atKarnataka by 1.6 wet million tonnes. Production of pig iron was 681,000 tonnes in FY2020, lower by 1% y-o-y.

Due to nationwide lockdown imposed by Central government because of

FINANCIAL PERFORMANCE

In FY2020, revenue increased to ₹3,463 crore, 19% higher y-o-y mainly due to two-fold increase in sales volume at Karnataka partially oﬀset by lower pig iron prices during the year. EBITDA increased to ₹878 crore compared with ₹584 crore in FY2019, mainly due to higher volumes at Karnataka.

Particulars

Revenue

3,463

2,911

EBITDA

878

584

EBITDA margin (%)

COVID-19 pandemic, we lost ~20,000 tonnes at of pig iron production at VAB in month of March 2020.

At Goa, mining was brought to a halt pursuant to the Supreme Court judgement dated 7 February 2018 directing all companies in Goa to stop mining operations with eﬀect from 16 March 2018. We continue to engage with the Government for a resumption of mining operations.

We bought 1.4 million tonnes low grade iron ore in auctions held by Goa Government in August 2019. These ore were then beneﬁciated and ~0.9 million tonnes were exported, which further helped us to cover our ﬁxed cost and some ore were used to cater to requirement of our pig iron plant at Amona.

FY2020

STRATEGIC PRIORITIES & OUTLOOK

Looking ahead for the next 12 months our focus and priorities will be to:

ƒ Bring about a resumption of mining operations in Goa through continuous engagement with the Government and the judiciary

ƒ Increase our footprint in iron ore by continuing to participate in auctions across the country, including Jharkhand

ƒ Securing Environmental Clearance for expansion & debottlenecking of Pig Iron plant to increase production capacity by 1.7 LTPA

ƒ Advocacy for removal of e-auction/ trade barrier in Karnataka

ESL's Leadership planting trees in the plant premises for a sustainable future

THE YEAR IN SUMMARY

Electrosteel Steels Limited (ESL) is an Integrated Steel Plant (ISP) in Bokaro, Jharkhand, with a design capacity of 2.5 mtpa. Its current operating capacity is 1.5 mtpa with a diversiﬁed product mix of wire rod, rebar,

DI pipe and pig iron.

In FY2020, ESL has achieved achieved the record volume and lowest-ever cost during the year since acquisition, however EBITDA margin was lower as compared to previous period (US$78 per tonne v/s US$115 per tonne) on account of decline in steel prices.

OCCUPATIONAL HEALTH & SAFETY

We unfortunately had one fatality on 28 February 2020 at Steel Melting Shop (SMS). On 22 February 2020, Mr. Laxman Kumar, a signal man met with unfortunate accident and succumbed to his injuries on 28 February 2020. Detailed internal and external investigations were undertaken to ascertain the root cause of the incidents and control measures have been put in place.

In terms of improvement of safety journey, initiatives like positive isolation survey conducted for an entire plant by E-Square; LOTOV implementation in progress across site; grid owner concept initiatedto focus on HSE system being implemented eﬀectively; critical risk identiﬁed across plant; HAZOP studies in progress; capability development under various module such as scaﬀolding safety; crane safety; defensive driving safety and others; overall 145 leaders were trained in MBRD to create awareness celebrated month-long National Safety day in February; initiated Periodic Medical Examination (PME) and Pre-employment Examination of Employees/Workers; procured advanced life support ambulance, established OHC with all latest medical equipment's inside the plant premises and other initiatives.

The LTIFR for FY2020 was 0.38.

ENVIRONMENT

In Waste Management system, more than 100% utilisation of Blast furnace granulated Slag, Fly Ash to cement industries through long term contracts and Brick manufacturers, Disposal of Biomedical waste to CBWTF, Selling of Used Oil and Zinc Dust to Pollution Control Board authorized recyclers and re-processors is being ensured.

In Water Management, we treat of around 4,000 Kl of water daily in Eﬄuent Treatment Plant and it is being reutilized in several processes such as Coke Quenching,

Design capacity of 2.5 mtpa.

BF Slag granulation, 100% Greenbelt Development, Fire Fighting, Sprinkling and in operations of Lime and Dolo, DIP and others.

In Energy Management, usage of waste heat from coke oven ﬂue gas for generation of steam which, ultimately helps in power generation, Reduction in Auxiliary power consumption from 12% to 8% through improvement in station heat rate.

Usage of LP steam in Blast furnace to minimize the fuel requirement, LD gas and BF gas in several operations such as reheating furnace of rolling mills, Blast Furnace, DIP and lime and Dolo to reduce the fuel consumption, Running of TG through steam generated from Waste Heat recovery.

In Air Emission Management, Revamping of OG system in SMS to reduce fugitive emission, upgradation of Air pollution control equipment's to meet the norms stipulated by the regulatory authorities, Installation of ﬁxed sprinklers all along the haul roads and dry fog system in all the closed conveyors and deployment of mechanical sweepers for road sweeping.

OPERATIONAL REVIEW STEEL CONTINUED...

STEEL

PRODUCTION PERFORMANCE

Particulars

Production (kt)	1,231	1,199 3
Pig iron	167	142 18
Billet	27	39 (30)
TMT bar	468	441 6
Wire rod	413	427 (3)
Ductile iron pipes	155	150 3

OPERATIONS

There have been signiﬁcant gains in operational eﬃciencies, such as optimisation of the coal mix in coke ovens and iron ore blending, shifting high grade ores to medium grades. Improved yields of the converters and ﬁnishing mills also added to the eﬃciency. Converter yield improved from 87.30 to 87.52% during the year.

During FY2020, we achieved 12,31,000 tonnes of saleable production during FY2020, up 3% y-o-y on account of improved availability of hot metal and better operational eﬃciency at converters and rolling mills.

The priority remains to enhance production of VAPs, i.e. TMT bar, wire rod and DI pipe. ESL maintained 85% of VAP sales, in line with priority.

Our Consent to Operate (CTO) for the steel plant at Bokaro, which was valid until December 2017, was not renewed by the State Pollution Control Board (SPCB).

This was followed by the Ministry of Environment, Forests and Climate Change revoking the Environmental Clearance (EC) dated 21 February 2018. Both the directions have since been stayed by the Hon'ble High Court of Jharkhand and the company is in the process of regularizing all alleged issues on without prejudice basis with a view to bring an end to all disputes pertaining to the said statutory approvals. Due to the nation-wide lockdown situation, all the high court hearings through a general order has been postponed and shall be taken up in due course.

FY2020

FY2019

% change

PRICES

Average sales realisation decreased 13% y-o-y from US$572 per tonne in FY2019 to US$495 per tonne. Prices of iron and steel are inﬂuenced by several macro-economic factors. These include global economic slowdown, US-China trade war, supply chain destocking, government spend on infrastructure, the emphasis on developmental projects,

Particulars

Pig irons	354	404 (12)
Billet	418	486 (14)
TMT	494	564 (12)
Wire rod	519	638 (19)
DI pipe	602	593 2
Average steel price (US$ per tonne)	495	572 (13)

V-DUCPIPE

demand-supply forces, the Purchasing Managers' Index (PMI) in India and production and inventory levels across the globe, especially China.

Even though the NSR dipped by US$77 per tonne, we were able to maintain our EBITDA margin at US$78 per tonne for the year (against US$115 per tonne in FY2019) through better control over costs.

UNIT SALES AND COSTS

Cost has decreased by 9 % y-o-y from US$457 per tonne to US$ 418 per tonne in FY2020 mainly on account of softening of coking coal price during the year and operational eﬃciencies which wasmanaged through improvement in key operational metrics.

Particulars

Steel (US$ per tonne)

FY2020

FY2019

% change

418

457

(9)

FINANCIAL PERFORMANCE

Revenue increased marginally by 2% to ₹4,283 crore (FY2019: ₹4,195 crore), primarily due to higher volume, partially

oﬀset by lower sales realisation. EBITDA decreased by 26% to ₹588 crore in line with sales partially oﬀset by improved cost of production.

Revenue	4,283	4,195
EBITDA	588	791
EBITDA margin	14%	19%

(₹ crore, unless stated)

FY2020

* FY2019 Financial numbers are for a period of 10 months post acquisition

FY2019*

V-XEGA

STRATEGIC PRIORITIES & OUTLOOK

FY2020

Global steel markets at the time of writing remain uncertain yet the focus is to operate within the highest of health and standards whilst improving eﬃciencies and unit costs wherever possible. Speciﬁcally, areas of focus will be;

ƒ Ensure business continuity
ƒ Cash preservation and deferring all 'good to go' capex
ƒ Obtain clean Consent to Operate and environmental clearance
ƒ Raw material securitisation through long-term contracts; approaching Free Trade Agreement (FTA) countries for coking coal

ƒ Ensure zero harm and zero discharge, fostering a safety-centric culture

ƒ To generate healthy EBITDA and

Cash Proﬁt

THE YEAR IN SUMMARYPRODUCTION PERFORMANCE

Particulars

The copper smelter plant at Tuticorin was under shutdown for the whole of FY2020. We continue to engage with the Government and relevant authorities to enable the restart of operations at Copper India.

We continued to operate our reﬁnery and rod plant at Silvassa, catering to the domestic market.

OCCUPATIONAL HEALTH & SAFETY

The Lost Time Injury Frequency Rate (LTIFR) was zero in FY2020 (FY2019: 0.15).

ENVIRONMENT

Copper Mines of Tasmania continued in care and maintenance awaiting a decision on restart. Meanwhile, a small dedicated team is maintaining the site and there were no signiﬁcant safety or environmental incidents during the year.

The site retained its ISO accreditation in safety, environment and quality management systems and the opportunity of a lull in production was used to review and further improve these systems.

Quality check of copper samples, Sterlite Copper

The Company's Silvassa

Production (kt) India - cathode

OPERATIONS

The Tamil Nadu Pollution Control Board (TNPCB) vide order, dated 9 April 2018, rejected the consent renewal application of Vedanta Limited for its copper smelter plant at Tuticorin. It directed Vedanta not to resume production operations without formal approval/consent (vide order dated 12 April 2018), and directed the closure of the plant and the disconnection of electricity (vide order dated 23 May 2018).

The Government of Tamil Nadu also issued an order dated 28 May 2018 directing the TNPCB to permanently close and seal the existing copper smelter at Tuticorin; this was followed by the TNPCB on 28 May 2018.

Vedanta Limited ﬁled a composite appeal before the National Green Tribunal (NGT) against all the above orders passed by the TNPCB and the Government of Tamil Nadu. In December 2018, NGT set aside the impugned orders and directed the TNPCB to renew the Consent to Operate. The order passed by the NGT was challenged by Tamil Nadu State Government in Hon'ble Supreme Court.

The Hon'ble Supreme Court of India in its order dated 18 February 2019

reﬁnery and rod plant enabling allowed the appeal against NGT order

us to cater to the domestic market.

and directed Company to challenge all the orders cumulatively beforeHon'ble Madras High Court.

FY2020

FY2019

% change

(14)%

The Company ﬁled a writ petition before Madras High Court in February 2019 challenging the orders of the State of Tamil Nadu and TNPCB. This Petition was heard by Hon'ble Madras High Court from June 2019 to January 2020. The hearing in this matter has currently concluded and the matter is reserved for orders. The Bench assured that it will endeavour to deliver judgement as early as possible. Meanwhile, the Company's Silvassa reﬁnery and rod plant continues to operate as usual, enabling us to cater to the domestic market.

Our copper mine in Australia has remained under extended care and maintenance since 2013. However, we continue to evaluate various options for its proﬁtable restart, given the government's current favourable support and prices.

OPERATIONAL REVIEW COPPER ž INDIA / AUSTRALIA CONTINUED...

COPPER - INDIA /AUSTRALIA

PRICES

Global copper demand growth in FY2020 has been weaker than expected, reﬂecting a deterioration in the global macro-economic landscape. The prices decline due to weak demand amidst china and US China trade dispute, supply chain de-stocking. Ex-China demand hasremained weak from auto, electronics and consumer goods sectors. Average LME copper prices decreased by 8% compared with FY2019.

Particulars

Average LME cash settlement prices (US$ per tonne)

FY2020

FY2019

% change

5,855

6,337

(8)

FINANCIAL PERFORMANCE

During the year, EBITDA was ₹(300) crore and revenue was ₹9,053 crore, a decrease of 16% on the previous year's revenue of ₹10,739 crore.

The reduction in revenue was mainly due to lower Copper LME prices and lower volume. EBITDA loss increased

to ₹300 crore on account of decrease in sales realisations by 8%.

Particulars

Revenue

9,053

10,739

(16)

EBITDA

(300)

(235)

(28)

EBITDA margin (%)

(3)

(2)

(₹ crore, unless stated)

FY2020

FY2019

% change

STRATEGIC PRIORITIES & OUTLOOK

Over the following year our focus and priorities will be to:

ƒ Engage with the government and relevant authorities to enable the restart of operations at Copper India;

ƒ Sustain operating eﬃciencies, reducing our cost proﬁle

Upgrade technology to ensure high-quality products and services that sustain market leadership and surpass customer expectations.

INTEGRATED REPORTMANAGEMENT REVIEW

06-115116-167

PORT BUSINESS

VIZAG GENERAL CARGO BERTH (VgCB)

During FY2020, VGCB operations showed an increase of 22% indischarge and 23% in dispatch compared to FY2019. This was mainly driven by higher availability of imported coal & railway rakes in the region.

Copper bending at Sterlite Copper

Vedanta Limited, a subsidiary of Vedanta Resources Limited, is one of the world's leading Oil & Gas and Metals Company with signiﬁcant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, and Aluminium & Power across India, South Africa, Namibia, and Australia. For two decades, Vedanta has been contributing to India's growth story, currently contributing 1 percent of India's GDP. The Company is among the top private sector contributors to the exchequer with the highest ever contribution of ` 42,560 crores in FY 2019.

REPORT

Dear Members,

Maintaining Vedanta's commitment to deliver sustainable and responsible growth, your board of directors are pleased to present the Directors' Report outlining the governance and business performance of the Company along with the audited Consolidated as well as Standalone ﬁnancial statements for the ﬁnancial year ended March 31, 2020.

COMPANY OVERVIEW

Governance and sustainable development are at the core of Vedanta's strategy, with a strong focus on health, safety, and environment and on enhancing the lives of local communities. The Company has been conferred with the CII-ITC Sustainability Award, the Golden Peacock GLOBAL Award for Excellence in Corporate Governance, the FICCI CSR Award, Dun & Bradstreet Awards in Metals & Mining, and certiﬁed as a Great Place to Work. Vedanta Limited is listed on the BSE Limited and the National Stock Exchange of India Limited and has American Depository Shares (ADS) listed on the New York Stock Exchange.

COVID STRATEGY

India's COVID response continues to be undoubtedly exemplary by global standards, and the Government of India along with all state governments are coordinating eﬀectively to ﬂatten the curve. We, at Vedanta, are doing our bit in a modest way to help save lives and livelihoods.

You will be happy to know that your Company has taken a pro-active approach to keep our assets and people safe while ensuring continuity of business. During these testing times our priority is to ensure the health and safety of our employees, contractors and stakeholders, while ensuring the business continuity to the extent possible. Our strategy has been threefold: practice physical distancing for all essential workstreams, rely on early diagnosis for our workforce to prevent an outbreak and share knowledge and best practices across our business entities to ensure safe workplaces. While the average footfall at our plants has been reduced signiﬁcantly, our employees are actively involved in building homegrown solutions to the challenges created by COVID-19. For example, we now have no-touch based hand washing system which wasbuilt by our employees. Additional safety measures in terms of sanitiser fogging, social distancing measures through on ground marking etc. are also in place to ensure minimum contact. We have also launched a healthcare helpline for our employees in partnership with Apollo hospitals, through which they can tele-consult with a General Physician or a Psychologist.

Most of our operations were continuing during the lockdown period being 'essential' or 'continuous' in nature though we have had temporary disruptions leading to production being down to 80% of the capacity during lockdown which we have now been able to ramp-up to ~90% of normative levels. All of our sites are open with the requisite government permissions and adherence to highest safety standards. Our focus during these times have been to ensure that we operate optimally with lowest possible cost of production.

The future impact on operations is diﬃcult to assess at this point, as the situation is unravelling at a fast pace. Even though the current situation is very volatile, we are conﬁdent about our ability to manage the crisis and emerge as a stronger entity.

COMPANY PERFORMANCE

Vedanta has a portfolio of world-class, low-cost, scalable assets that consistently generate strong proﬁtability and robust cash ﬂows. We continue to consolidate our position as one of the largest diversiﬁed natural resources businesses in the world. We are positioned in the commodities that have a growing demand in one of the largest, most stable and fastest growing economy in the world with a key focus on operational delivery. Asset planning, operational excellence, cost control, productivity enhancement, improvement in realisation, risk mitigation coupled with increasing use of technology, more innovation and digitisation has helped us to enhance the delivery from our assets. Our key strategic priority is to focus on ethics, governance and social licence to operate, while we continue our journey towards zero harm, zero waste and zero discharge.

The year gone by was challenging, with tremendous uncertainties in the macro environment with the advent of novel coronavirus (COVID-19), which was further compounded by the oil price war leading to reduction in oil prices. The long-term impact of these major events can only be assessed after normalcy is restored.

However, on the operational side, we saw our three large businesses: Zinc, Aluminium and Oil & Gas achieve signiﬁcant milestones which give us strong base for the near-term targets that we have set for these businesses. In Zinc, we remain on track to become the world's largest integrated Zinc-Lead-Silver producer in two years while maintaining our cost leadership, with strong sequential volume growth from Hindustan Zinc and rising volumes from ZincInternational. Our Aluminium business continues to beneﬁt from consistent structural reduction of cost through improved backward integration. In the Oil & Gas business, we have begun to implement our growth projects with gross capex of over US$ 3.2 billion, which will enable Vedanta to increase volumes in the near term.

As we look forward to the year ahead, we are operationally well positioned to deliver. In Oil & Gas, we are India's largest private producer of crude, and

271-502

rank with the world's lowest-cost producers with production, development and exploration pipeline. In Aluminium, we oﬀer India's largest production capacity, supported by our own captive power generation and increasingly integrating backwards for our own Alumina. The strengths of our diverse portfolio, together with our focused growth strategy expanding our reserves and resource base, a strong balance sheet, strong talent base, technology and modernisation initiatives, all combine to create a truly inspirational Company.

DIRECTORS' REPORT CONTINUED...

Return Contribution

ZincIndia 18,159

3,128

ZincInternationalOil&Gas 12,661

Aluminium 26,577

5,860

PowerIronOre 3,463

Steel 4,283

Copper 9,053

362

Others

Proﬁt Contribution - Business Segments

ZincIndia 6,448

(253)

ZincInternationalOil&Gas 4,557

175

AluminiumPower 979

IronOre 777

Steel 345

Copper (509)Others (347)

The standalone and consolidated ﬁnancial statements of the Company for the ﬁnancial year ended March 31, 2020 prepared as per Indian Accounting Standards (Ind AS) and in accordance with the provisions of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) forms part of this Annual Report.

OPERATIONAL HIGHLIGHTS & SIGNIFICANT DEVELOPMENTS

ZINC INDIA ƒ Mined metal production of 917kt, down 2% y-o-y ƒ Reﬁned zinc-lead production of 870 kt, down 3% y-o-y

ZINC INTERNATIONAL: ƒ Gamsberg production volume at 108 kt in FY 2020, up from 17kt in FY 2019

Improved cost of production at $1,665/t, down 13% y-o-y

ALuMINIuM

ƒ Aluminium production at 1,904 kt
ƒ Record alumina production at 1,811 kt, up 21% y-o-y
ƒ Alumina cost of production in Q4 FY 2020 at $258/t

STEEL	COPPER
ƒ Record annual steel	ƒ Due legal process
production at 1.23	is being followed to
million tonnes for	achieve a sustainable
FY 2020, up 3% y-o-y	restart of the
Tuticorin operations

POWER ƒ Record plant availability of 91% at the 1,980MW TSPL plant in FY 2020

IRON ORE

ƒ Continued engagement with the Government for resumption of Goa mining operations
ƒ Saleable ore production in Karnataka at 4.4 million tonnes, up 6% y-o-y
ƒ Iron ore sales in Karnataka at 5.8 million tonnes, up 125% y-o-y

OIL & GAS

ƒ Average gross production of 174 kboepd for FY 2020, down 8% y-o-y
ƒ 9 rigs are currently deployed; 136 wells drilled during FY 2020
ƒ Early gas production facility fully commissioned to design capacity of 90 mmscfd
ƒ Production sharing contracts (PSC) signed for Ravva block extended for 10 years
ƒ FTG survey completed in Assam and Kutch basins; Seismic survey ongoing in OALP Blocks

The details of the business, results of operations and the signiﬁcant developments have been further elucidated in Management Discussion & Analysis section of the Annual Report.

ACQuISITION

During the year, your Company commenced implementation of the Resolution Plan of Ferro Alloys Corporation Limited (FACOR) under the Corporate Insolvency Resolution Process (CIRP) of the Bankruptcy Code after the same was approved by the NCLT, Cuttack on January 30, 2020.

FACOR was admitted into insolvency by order dated July 6, 2017. Pursuant to the order dated January 30, 2020, Vedanta Limited implemented the Resolution Plan for completion of acquisition of FACOR. The closing of transaction is expected by Q2 FY 2021.

FACOR owns a Ferro Chrome plant with 72,000 TPA capacity with 4 Chrome mines out of which only 2 mines are operational and a 100 MW Captive Power plant in Orissa through its subsidiary Facor Power Limited (FPL).

The acquisition will complement Vedanta's existing steel business as the vertical integration of ferro manufacturing capabilities has the potential to generate signiﬁcant eﬃciencies and will help Vedanta to increase its portfolio in steel business.

During the year, your Company also acquired the Sindhudurg unit of Global Coke Limited, which was under liquidation in the Bankruptcy Code. The acquisition will provide backward integration opportunity for our Pig Iron facility at Amona.

CORPORATE RESTRuCTuRING

Your Company acquired Electrosteel Steels Limited (ESL), a company listed on BSE Limited and National Stock Exchange of India Limited engaged in the business of manufacturing of steel pursuant to a Corporate Insolvency Resolution Process implemented by way of the Insolvency and Bankruptcy Code 2016. With the potential to generate signiﬁcant eﬃciencies, the acquisition of ESL complemented the Company's existing Iron Ore Business as the vertical integration of steel manufacturing capabilities.

With approval granted by NCLT, Kolkata Bench for the Scheme of Amalgamation of Vedanta Star Limited with ESL, your Company now directly hold 95.49% in ESL.

RESEARCH AND DEVELOPMENT

Vedanta has been an aggressive leader in terms of adopting new technologies and improving processes and standards. In Aluminium and Power Business R&D team shoulders the responsibility of inventing the next big thing in aluminium and create a competitive edge for the Company. With an eye on developments in the global markets, our R&D teams capitalise on potential opportunities and future demands with the aim of making our vision for 100% Value-Added products and best-in-class operating eﬃciencies at all our manufacturing facilities. Our R&D team brings together Technical, Operations and Marketing expertise to brainstorm and implement innovative ideas that can address the trio of critical business objectives - increased market share, lower cost of production and

271-502

increased proﬁtability, thereby elevating the Company's position in the global aluminium value chain. Hindustan Zinc Limited's (HZL) Technology & Innovation group has enhanced its R&D activities during the last two years with R&D becoming more important than ever in this challenging environment to not only sustain our metal recoveries and reduce operating costs but also to support our long-term vision of 1.5+ mtpa metal and 1000+ TPA silver production. In Cairn we continue to operate our ﬁelds in a digital manner through unmanned well pads with remote access which drastically reduces human exposure to risk and increases operational eﬃciency. Centralised control rooms, remotely activated surface facilities and digital surveillance platform (BabelFish) has allowed high uptime in operation of Mangala Processing Terminal, over 500 wells spread across many acres, Centralised polymer processing farm and the world's largest continuously heated pipeline. Our other businesses also continue to lead the industry in terms of R&D. Copper for example has created Pure Tellurium Extraction to produce copper anodes (99.5% pure) and Ferric Sulphate Extraction from Copper Slag which is our by-product. In Iron Ore Business Value Added Business team had developed a customised product, Sesa Special Grade (SSG) for a niche segment (otherwise being imported by customers) by producing high purity pig iron through blast furnace route. The Value-added business team had also come up with an innovative idea of producing Foundry Grade pig Iron outside the blast furnace using Ferro Silicon which otherwise normally gets produced in blast furnace by compromising on productivity & high fuel rate. Some other examples are automation of the charging plate insertion mechanism, employee care applications, automatic trip counting and dynamic allocation of hauling units and GPS controlled speed tracking system in dispatch trucks. Our businesses continue their tremendous work in these areas to make the group more sustainable.

PROJECTS AND EXPANSION PLAN

Projects are key driving factor of our Group as our aspirations for growth are very diﬀerent from any of the peers globally. In HZL, we have successfully completed projects that are supporting an enhanced capacity for 1.25 mtpa Mined Metal and plan for 1.5 mtpa should get ﬁrmed up before this year ends. Our ﬂagship Rampura Agucha mine has successfully commissioned the Production Shaft and our 1st Fumer project is about to start delivering volumes in the quarter. Our venture into Minor Metal should drive additional value from the same ore mined, giving us higher returns for the same capital employed. In VZI, the Gamsberg mine and processing facilities are about to stabilise, which will set the stage for Gamsberg Phase-1 expansion, which involves setting up of the smelter unit to give us reﬁned metal from the mined metal of the Gamsberg ore. Gamsberg phase-2 will further enhance the mining capability, processing units and smelters units capacity to double the current volumes. In Cairn, we are still focussed on the journey to produce India's 50% Oil & Gas production. We have seen some hiccups in the projects execution but we are trying to resolve all those issues this year and start

INNOVATION, DIGITALISATION & TECHNOLOGY At Vedanta, innovation has been at the strategic forefront in every dimension of the business. With the relentless support from senior leadership, the Group has diligently instilled innovative enrichment as a corporate value and continues to incentivise employees in building a culture based on technological and creative transformation. Encompassing acquisition of best-in-class technology for fast-track digitalisation of operations, manifestation of its own innovation nurtures the Group in its drive for operational excellence, eﬃciency and sustainability.

delivering on these projects. The seismic acquisition programme and satellite-based prospecting has commenced in Open Acreage Licensing Policy (OALP). In Aluminium, Odisha Bauxite & Lanjigarh expansion are key expansion projects and Jamkhani coal block execution will be critical to deliver more value from this sector. We are set to deliver tremendous value to all our stakeholders once we successfully execute these projects across the group.

Standing ﬁrm on our core values of entrepreneurship and innovation, your Company continues to discover, integrate and implement technologies through the introduction of novel systems and ideas. Across our business units, employees are encouraged to be creative in their thinking and approach with acknowledgement for their valued contributions to making a diﬀerence.

As a part of the technology-enabled operating models, the mine digitisation and automation initiatives in addition to advanced upskilling programmes and practices deployed by your Company at various locations and departments are highlighted in the Management Discussion & Analysis section of this Report.

ECONOMIC RESPONSIBILITY

Vedanta strives to be a responsible corporate citizen and to make a positive contribution to the communities in which we operate. Payment to exchequer viz. taxes, royalty, proﬁt oil etc. is a vital part of our contribution to national economies and people's lives. Vedanta supports the principles of greater transparency that increases understanding of tax systems and build public trust.

With these values being ingrained in Vedanta's DNA, we are proud to share that we have contributed ` 32,400 crores to the public exchequer of the various countries where we operate.

Your Company publishes Tax Transparency Report which provides an overview of the tax strategy, governance and tax contributions made by the Company.

The report is available on the website atwww.vedantalimited.com

SuSTAINABILITY & BuSINESS RESPONSIBILTY REPORT

Sustainable Development is integral to Vedanta's core business strategy. We continue to be a transparent and responsible corporate citizen; committed to a 'social licence to operate' and partner with communities, local governments and academic institutions to help catalyse socio-economic development in the areas where we operate.

The Company reaﬃrms its core values of Trust, Entrepreneurship, Innovation, Excellence, Integrity, Respect and Care, which are the basis of our Sustainable Development Model.

The model continues to be centered on the four strategic pillars: Responsible Stewardship; Building Strong Relationships; Adding and Sharing Value; and Strategic Communications.

A separate detailed report on Company's Sustainability Development also forms part of the Annual Report.

Recognising sustainable development as a core requirement to strategically improve the value of our business, the Board of Directors constituted a Sustainability Committee eﬀective April 1, 2019 to provide oversight and assistance in building an approach towards sustainability which mirrors our prevailing business ethos of achieving excellence through continuous improvement in our processes and outcomes, while also benchmarking ourselves against our global peers.

As per SEBI directives on Integrated Reporting (IR), the Company has followed the framework of the International Integrated Reporting Council to report on all the six capitals that are used to create long-term stakeholder value and also provided the requisite mapping of principles between the Integrated Report, the Global Reporting Initiative ('GRI') and the Business Responsibility Report (BRR), which forms part of the Annual Report. Hence, a separate BRR is not being published by the Company this year. The Sustainability Report of the Company can be accessed atwww.vedantalimited.com.

MANAGEMENT DISCuSSION AND ANALYSIS

The Management's Discussion and Analysis Report for the year under review, as stipulated under Regulation 34 read with Schedule V of Listing Regulations is presented in a separate section, forming part of the Annual Report.

CORPORATE SOCIAL RESPONSIBILITY

The year 2019-20 has brought lot of laurels in the hats of Vedanta Group. The group companies have been recognised for socio-economic impact they have created in the communities through their large-scale CSR Programme, receiving of more than 15 National and International awards is a testimony to that. The companies won Golden Peacock award, ASSOCHAM Women Achievers Award 2019, Golden Fulcrum Award, ET NOW World CSR Award, The CSR Journal Awards, ICC Social Impact award to name a few.

Our Company works towards a larger goal of creating enduring value for the communities it works in. Towards that end, we undertake various need-based community programmes as part of our Corporate Social Responsibility (CSR). Putting the last as ﬁrst being the topmost priority, the Company has committed to align its CSR activities to the priorities of its neighbourhood communities and also the national priorities including the Sustainable Development Goals.

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Details of the composition of the committee, its terms and reference and the meetings held during FY 2020 is elucidated in the Corporate Governance Report.

Your Company publishes an annual Sustainability Report prepared in accordance with the Global Reporting Initiative (GRI) Standards; mapped to the United Nations Global Compact (UNGC); and aligned to Sustainable Development Goals (SDGs). It reports our approach and disclosure towards triple bottom line principles - People, Planet and Proﬁt.

For almost all our programmes, a bottom up community engagement approach is non-negotiable. This collaborative approach ensures community ownership, suitable project design, eﬀective delivery and post project sustainability. Apart from communities, we also strongly believe in partnering with government agencies, corporates, civil society organisations & community-based organisations to carry out durable and meaningful interventions.

All our CSR programmes are governed by the Vedanta CSR Policy, Corporate Technical Standards and each entity speciﬁc Standard Operating Procedures for CSR. The documents are periodically revised. Further, in order to beneﬁt from diverse perspectives, and in keeping with a culture of collective leadership, Vedanta has formed a CSR Council. The Council is led by senior business leaders comprising of CSR Heads & CSR executives from the diﬀerent Business Units. The Council is responsible for governance, synergy and cross learning across the Group CSR eﬀorts. It meets every month and reviews the performance, spends and outcome of CSR programmes for all Business Units. The Council is instrumental in implementing improvement projects to create a seamless enabling eco-system for Business Units to carry out best-in-class community development programmes.

Vedanta has a strong Board CSR Committee including senior Independent Directors. The Committee provides strategic direction for CSR activities, and approves its plans and budgets. It also reviews progress and guides the CSR teams towards running well-governed and impactful community programmes. Details of the composition of the committee, its terms and reference and the meetings held during FY 2020 is elucidated in the Corporate Governance Report.

During the year, the Company on a standalone basis spent ` 52.66 crores on CSR activities, while on a consolidated basis it spent about ` 296.46 crores on CSR.

A detailed overview on the Community Development Programmes for FY 2020 is highlighted in the Sustainability & ESG section of this Annual Report.

A brief overview of CSR initiatives forms part of this Directors Report and is annexed hereto as Annexure A.

Your Company's CSR Policy addresses the Company's commitment to conduct its business in a socially responsible, ethical and environmentally friendly manner; and to continuously work towards improving the quality of life of the communities in the areas where it operates.

The policy may be viewed atwww.vedantalimited.com.

VEDANTA'S EFFORTS TO COMBAT COVID-19 PANDEMIC

Vedanta, which has been at the forefront of the battle to combat the COVID-19 pandemic, has reached out to communities across 9 states in India to provide them with preventive healthcare and distribute free meals to the marginalised sections.

Having taken various precautionary measures to ensure the safety and well-being of all employees and stakeholders, Vedanta has intensiﬁed its support for the people and communities it works in.

As part of the Meals for Free programme, the Company has so far provided ~9 lakh meals to daily wage earners across the country. In addition, dry packet rations have been provided to more than 13,500 families from the marginalised sections of the society. On their part, the business units have also distributed more than 48,000 dry ration packets to the local communities.

Vedanta has pledged 10 lakh meals to daily wage earners, who have been hard hit due to the COVID-19 pandemic and resultant lockdown.

Vedanta has set up a ` 100 crores corpus for daily workers, preventive healthcare and welfare of employees and contract partners. The Company has also contributed ` 101 crores to PM-CARES Fund to join forces with the government in ﬁghting the pandemic.

Keeping in mind the poor condition of stray animals, who hardly have any access to food during the lockdown, the Company is feeding more than 50,000 stray animals every day. The Company has so far provided more than 12.70 lakh feedings to stray animals in Delhi, Mumbai and Patna.

In a bid to strengthen preventive healthcare, Vedanta has distributed more than 4.5 lakh masks across communities. The Company is in the process of handing over another 2 lakh N95 masks to the Ministry of Health and Family Welfare, Government of India. So far, the Company has provided more than 26,000 surgicalmasks and 75,000 surgical gloves to district hospitals across the country.

It has developed ﬁrst of its kind (in-house) application - called NIVAARAN for CSR function to manage the community request, needs or grievances and address them on time across Vedanta in 2019 (initially started in Cairn Oil & Gas in 2018 and scaled across the Group as a best practice). NIVAARAN application follows up with the internal people as per the assigned timelines

Vedanta has also collaborated with the Ministry of Textiles to import 23 machines for indigenously Personal Protective Equipment (PPEs). The imported machines, which are now operational, able to produce 50,000 PPEs per day. The Company has distributed more than 1 lakh soaps and sanitisers across communities.

BALCO Hospital has set up isolation wards.

A 100-bed hospital has been commissioned at Korba in Chhattisgarh. The Cairn Centre of Excellence (CCoE) in Jodhpur has been handed over to district administration as a quarantine facility with a 120-bed capacity, with meals provided three times a day for 150 people.

More than 10 mobile health vans have been made available to district administration for use as ambulances and for distribution of essential commodities by Business Units and Nand Ghars. 10 ICu beds, 2 ventilators and 25 nebulisers have also been provided to the hospitals.

More than 1,100 women SHG members were engaged in the stitching of masks and distributing same among communities. They also contributed more than 10 tonne grains to grain banks created for supporting needy families during lockdown.

As an act of solidarity with the state governments, Vedanta has contributed ` 32.3 crores to diﬀerent State's Chief Minister Relief fund COVID-19 Mitigation Fund which includes Rajasthan, Tamil Nadu, Goa, Punjab, Karnataka, Bihar, uttar Pradesh and Chhattisgarh. Your Company has also procured PPE kits for the Government of Odisha and also arranged food packets, sanitiser kits to migrant workers travelling back to their home states.

Vedanta employees have donated one day's salary, which was contributed by the Company for the relief funds.

Vedanta, in collaboration with Apollo Hospitals, has established a 24x7 general helpline for the employees to ensure timely healthcare advice during the lockdown. The services are open for all employees and their families.

DIGITISATION INITIATIVES - CSR

Vedanta is committed towards bringing innovation & creating shared values by managing our stakeholders through diﬀerent community development initiatives in various thematic areas and automation in

CSR Governance.

and notiﬁes them to take necessary actions to close the grievances or requests. In case the actions are not taken beyond the set timelines, it then escalates of its own to the respective managers for closure. It has helped in improving the grievance and requests recording and their redressal faster.

Besides this, another application was launched across Vedanta in 2019 in partnership with an IT startup - GOODERA to monitor entire Vedanta CSR Projects, provide opportunity to explore new partnerships with credible organisations, track grants and also provide platform for Vedanta Employees to volunteer in diﬀerent CSR activities.

Vedanta is working towards more such IT solutions for CSR domain in coming future to improve the project governance in order to develop goodwill in the community besides their development.

IMPACT ASSESSMENT

Your Company undertakes regular monitoring of all its CSR initiatives, and these include periodic third-party assessment of baseline and impact of CSR interventions with key indicators in its areas of operation every three years. In line with this, in 2019, Taru Leading Edge ("Taru") was appointed by Vedanta towards third party assessment with the following objectives:

ƒ Understanding the impact of Vedanta's CSR interventions on the community in Vedanta's BU locations to understand the receptiveness of the programmes in the communities;
ƒ Understanding the baseline and socio-economic scenario of the project areas as also the community needs in the BU locations;
ƒ Development of a relevant CSR Strategy to assist Vedanta group in eﬀective planning and implementation of its future CSR initiatives and Impact programmes.

This assessment was undertaken by Taru and the study collected information in the form of Household (HH) surveys, focus group discussions, village level observations, joint consultations and workshops, Key Informant Interview (KIIs), In-Depth Individual Interviews (IDIs) from 12,028 HHs in various Vedanta BU operational areas, towards understanding the socio-economic status in the project focusing on the key indicators relating to the thematic areas of sustainable livelihood, education, health and nutrition, energy use, environment, water and sanitation and women-related issues baseline and community's needs along with assessment of impact of the ongoing CSR interventions of Vedanta Group and the community's response.

Some of the key highlights of the assessment were: - ƒ Among the 12,028 survey HHs for impact assessment in the diﬀerent BUs, 7,127 HHs (~60%) were identiﬁed to have been impacted from the various CSR programmes implemented by Vedanta in the diﬀerent BUs. This indicated that Vedanta reached out to ~60%of the HHs in their operational areas through one or the other initiatives under CSR.

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ƒ Overall outcomes of the various CSR sustainable livelihoods interventions in the BUs showed about 61.9% HHs stating that there was an increase in HH income.
ƒ Majority of those who underwent skill development trainings (85.4%) felt more conﬁdent after the training and about 25% also stated that they got more respect in family and society.
ƒ Health programmes have good reach and these programmes have reached to 47.6% of the HHs in the localities. More than 75% of the health domain beneﬁciaries stated of saving money on medicine and health due to Vedanta's interventions.
ƒ The reach of the education programmes to the general community has been 14.7%. The analysis of the overall outcomes of the various CSR education interventions in the BUs showed about 79.3% HHs stating of improvements in the grades of their children and about 83.3% stating of increased interest of children to go to school and 82.6% expressed an improvement in quality of education.
ƒ For Water, Sanitation, Energy & Environment, the overall coverage or reach of the CSR interventions was 29.4%. The impact of these programmes were quite evident and the programmes were well-received. 65.1% of the HHs reported increase in cleanliness in the local areas; 58.6% of the HHs reported Suﬃcient quantity of water available at home; 77.4% of the HHs reported regular use of toilet facility in House; 79.2% of the HHs reported that women now feel more safe after construction of toilet; 77.8% of the HHs reported improvement in school attendance after construction of toilet and 61.1% of the HHs reported decline in number of cases of diseases.

Some of the speciﬁc ﬁndings towards aspects which are being done well by the group companies are: -

ƒ Investment of sizeable amount in the community through its CSR and Vedanta Leadership support towards these initiatives;
ƒ Good CSR portfolio;
ƒ Overall good CSR policy framework;
ƒ Business units on board and dedicated CSR teams in place in each BU;
ƒ Interest in high impact programmes;
ƒ Proper needs assessment being done periodically;
ƒ Good roster of NGO implementing partners;
ƒ Increase in CSR spending envisaged for the foreseeable future amongst others.

The report also highlighted that Vedanta Group has always shown a high-level commitment towards CSR and intents as it was one of the early movers on CSR and its CSR funding and spending has increased many folds in the last few years. The leadership of the group is well committed to the community with personal commitment by the senior management.

On November 29, 2019, the Nomination & Remuneration Committee approved the grant of Employee Stock Options 2019 to Vedanta employees covering 35% of eligible population. In-order to align the scheme with the best-in-class reward practices globally, the ESOS 2019 plan has undergone signiﬁcant transformation. The grant under the ESOS 2019 is completely driven by performance and is a combination of individual contribution and business/SBU performance. Although the plan continues to be linked to Vedanta Limited for its R-TSR performance, but since business delivery is of prime importance for the organisation today, the internal parameters of Volume, Cost, NSR & EBITDA, as applicable to respective business and SBU have been introduced as additional performance parameters with enhanced weightage. The vesting of such options will also be a factor of sustained individual performance subject to continued employment with the group. Through this change, we not only ensure to protect the shareholder interests but also enable a better control of the outcome of the plan in the hands of the employee.

HuMAN RESOuRCES (HR)

People & culture

Your Company has always aspired to build a culture that demonstrates world-class standards in safety, environment and sustainability. People are our most valuable asset and we are committed to provide all our employees with a safe and healthy work environment.

An update on People & Culture detailing the Company's initiatives, recruitment strategy, hiring projects and talent management and development is elucidated in the Management Review Section of the Annual Report.

EMPLOYEE STOCK OPTION SCHEME

Your Company has established a share incentive schemes viz. 'Vedanta Limited Employee Stock Option Scheme 2016' ("the Scheme"). The Scheme was framed with a view to reward employees for their contribution in successful operation of the Company with wealth creation opportunities, encouraging high-growth performance and reinforcing employee pride.

The Scheme is a conditional share plan for rewarding performance on pre-determined performance criteria and continued employment with the Company. The pre-determined performance criteria shall focus on rewarding employees for Company performance vis a vis competition and also for achievement of internal operational metrics.

The Scheme was launched after obtaining statutory approvals, including shareholders' approval by way of postal ballot on December 12, 2016.

The Scheme is currently administered through Vedanta Limited ESOS Trust (ESOS Trust) which is authorised by the Shareholders to acquire the Company's shares from secondary market from time to time, for implementation of the Scheme. During the year, the ESOS Trust was re-constituted by the Nomination & Remuneration Committee in its meeting held on January 31, 2020. The details of the trustees are provided can be accessed atwww.vedantalimited.com.

MANAGERIAL REMuNERATION, EMPLOYEE INFORMATION AND RELATED DISCLOSuRES The remuneration paid to Directors, Key Managerial Personnel and Senior Management Personnel during

FY 2019-20 was in accordance with the Nomination and Remuneration Policy of the Company.

Disclosures under Section 197 of the Act and Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 ("Rules") relating to the remuneration and other details as required is appended as Annexure B to the Report.

In terms of provision of Section 136 of the Act and Rule 5(2), the Report and the Financial Statements are being sent to the Members of the Company excluding the statement of particulars of employees as prescribed under Rule 5(2) of the Rules. The said information is available for inspection on all working days during business hours, at the Company's Registered Oﬃce. Any member interested in obtaining a copy of the said statement may write to the Company Secretary and the same will be furnished upon such request.

No employee has been issued stock options during the year, equal to or exceeding one percent of the issued capital of the Company at the time of grant.

During the year, the acquisition by the trust does not exceeded 2% of the paid-up capital of the Company. Further, the total acquisition by trust at no time exceeded 5% of the paid-up equity capital of the Company.

Pursuant to the provisions of SEBI (Share Based Employee Beneﬁts), Regulations, 2014 ("Employee Beneﬁts Regulations"), disclosure with respect to the ESOS Scheme of the Company as on March 31, 2020 is available on the website of the Company atwww.vedantalimited.com.

The Company conﬁrms that the Scheme complies with the SEBI Employee Beneﬁts Regulations and there have been no material changes to the plan during the ﬁnancial year.

A certiﬁcate from M/s SR Batliboi & Co LLP, Chartered Accountants, Statutory Auditors, with respect to the implementation of the Company's ESOS schemes, would be placed before the shareholders at the ensuing Annual General Meeting (AGM). A copy of the same will also be available for inspection at the Company's Registered Oﬃce.

COMPENSATION GOVERNANCE PRACTICES AT VEDANTA

Vedanta has been built on a strong foundation of governance where the Board, Key Executives and Compliance Oﬃcer have been vigilant and committed to ensure structural integrity, soundness and highest standards of compensation practices. Over the last few years we have matured many of our reward practices as an attempt to continue to raise the bar.

ƒ The composition of Nomination and Remuneration Committee (NRC) is in compliance with the Listing Regulations and majority of the members are Independent Directors. The Chairman of the committee is an Independent Director.
ƒ The members of the NRC together bring out the rich expertise, diverse perspectives and independence in decision making on all matters of remuneration for Directors, Key Managerial Personnel (KMP) & Senior Management Personnel (SMP). The Independent Directors are actively engaged throughout the year as members of the NRC in various people matters even beyond remuneration.
ƒ A board charter appoints and sets our primary responsibilities of NRC which includes selecting, compensating, monitoring and, when necessary, replacing key executives and overseeing succession planning.
ƒ Best-in-class independent consultants are engaged to advise and support the committee on matters of board evaluation and leading reward practices in the industry.
ƒ The Executive Compensation Philosophy is well established and benchmarked across relevant industry comparators which enables us to diﬀerentiate people on the basis of performance, potential and criticality in-order to provide a competitive advantage in the industry.
ƒ The Total Reward Philosophy at Vedanta is built on the core objective of driving 'Pay for Performance' culture. The appropriate mix of components of the Executive Compensation aim to drive the short as well as long-term interests of the Company and its shareholders through strong emphasis on operational/ ﬁnancial fundamentals, social licence to operate and business sustainability, strategic objectives of resource and reserve creation and wealth creation for stakeholders.
ƒ Timely risk assessment of compensation practices is done in addition to review of all components of compensation for consistency with stated compensation philosophy: − Financial analysis & simulation of the long-term cost of reward plans and their Return on
Investments (ROI).
− Provision of claw back clause as part of the ground rules of our long-term incentive scheme for all our leaders.

− Upper limits and caps deﬁned on incentive pay-outs in the event of over-achievement of targets to avoid windfall gains.

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ƒ We do not encourage provision of excessive perks or special clauses as part of employee contract such as:

− No provision of Severance Pay in Employment contracts of Whole-Time Directors
(WTD), KMP & SMP;
− No Tax Gross up done for executives except for expatriates as part of tax equalisation;
− No provision of unearned Incentives/unvested Stock or Cash Options;

Any beneﬁt provided to Key Executives are available to all the employees of the Company as per the deﬁned Company policy.

ƒ We continue to corroborate the Internal Pay Equity

Principles, sustained attention to equity grant practices and maintain checks & balances to conﬁrm that the practices are legally and ethically compliant with International, national and state/regional laws.

RISK MANAGEMENT

The businesses are exposed to a variety of risks, which are inherent to a global natural resources organisation. The eﬀective management of risk is critical to support the delivery of the Group's strategic objectives.

Risk management is embedded in the organisation's processes and the risk framework helps the organisation meet its objectives by aligning operating controls with the mission and vision of the Group set by the Board.

As part of our governance philosophy, the Board has a Risk Management Committee to ensure a robust risk management system. The details of Committee and its terms of reference are set out in the Corporate Governance Report, which forms part of this Annual Report.

With eﬀect from June 6, 2020, the Risk Management Committee has been consolidated with the Audit Committee comprising of only Independent Directors ensuring robust risk management systems in place with valued feedback of Independent Directors being on the Committee.

Our risk-management framework is designed to be simple, consistent and clear for managing and reporting risks from the Group's businesses to the Board. Our management systems, organisational structures, processes, standards and code of conduct together form the system of internal controls that govern how we conduct business and manage associated risks. We have a multi-layered risk management framework to eﬀectively mitigate the various risks, which our businesses are exposed to in the course of their operations.

The Risk Management Committee supports the Audit Committee and the Board in developing the group-wide risk-management framework. Risks are identiﬁed through a consistently applied methodology. The Company has put in place a mechanism to identify, assess, monitor and mitigate various risks to key business objectives.

Major risks identiﬁed by businesses and functions are systematically addressed through mitigating actions. Risk oﬃcers have also been formally nominated at operating businesses, as well as at Group level, to develop the risk-management culture within the businesses.

The Risk Management Policy of the Company revised in 2019 covers cybersecurity as well. With eﬀect from June 6, 2020, the Risk Management Committee has been consolidated with the Audit Committee comprising of only Independent Directors.

For a detailed risk analysis, you may like to refer to the risk section in the Management Discussion Analysis Report which forms part of this Annual Report.

CYBER SECuRITY

The Group has a structured framework for cybersecurity. Each of the Business Units has a CIO (Chief Information Oﬃcer) with suitable experience in Information/Cybersecurity. Every year, cybersecurity review is carried out by IT experts (belonging to IT practices of Big-4 ﬁrms). Vulnerability Assessment and Penetration Testing (VAPT) review is also carried out by cyber experts. This practice has been in place for several years now and has helped in strengthening the cyber security environment in the group. At the same time, the external environment on cybersecurity is continuously evolving. The respective CIOs are responsible for ensuring appropriate controls are in place to address the emerging cyber risks.

INTERNAL FINANCIAL CONTROLS

Your Board has devised systems, policies and procedures/frameworks, which are currently operational within the Company for ensuring the orderly and eﬃcient conduct of its business, which includes adherence to policies, safeguarding its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable ﬁnancial information. In line with best practices, the Audit Committee and the Board reviews these internal control systems to ensure they remain eﬀective and are achieving their intended purpose. Where weaknesses, if any, are identiﬁed as a result of the reviews, new procedures are put in place to strengthen controls. These controls are in turn reviewed at regular intervals.

The systems/frameworks include proper delegation of authority, operating philosophies, policies and procedures, eﬀective IT systems aligned to business requirements, an internal audit framework, an ethicsframework, a risk management framework and adequate segregation of duties to ensure an acceptable level of risk. Documented controls are in place for business processes and IT general controls. Key controls are tested by entities to assure that these are operating eﬀectively. Besides, the Company has also adopted an SAP GRC (Governance, Risk and Compliance) framework to strengthen the internal control and segregation of duties/access. It also follows a half-yearly process of management certiﬁcation through the Control Self-Assessment framework, which includes ﬁnancial controls/exposures.

The Company has documented Standard Operating Procedures (SOP) for procurement, project/ expansion management capital expenditure, human resources, sales and marketing, ﬁnance, treasury, compliance, Safety, Health and Environment (SHE), and manufacturing.

The Group's internal audit activity is managed through the Management Assurance Services ('MAS') function. It is an important element of the overall process by which the Audit Committee and the Board obtains the assurance on the eﬀectiveness of relevant internal controls.

The scope of work, authority and resources of MAS are regularly reviewed by the Audit Committee. Besides, its work is supported by the services of leading international accountancy ﬁrms.

The Company's system of internal audit includes covering monthly physical veriﬁcation of inventory, a monthly review of accounts and a quarterly review of critical business processes. To enhance internal controls, the internal audit follows a stringent grading mechanism, focussing on the implementation of recommendations of internal auditors. The internal auditors make periodic presentations on audit observations, including the status of follow-up to the Audit Committee.

The Company is also required to comply with the Sarbanes Oxley Act Sec 404, which pertains to Internal Controls over Financial Reporting (ICOFR). Through the SOX 404 compliance programme, which is aligned to the Committee of Sponsoring Organisations of the Treadway Commission (COSO) framework, the Audit Committee and the Board also gains assurance from the management on the adequacy and eﬀectiveness of ICOFR.

In addition, as part of their role, the Board and its Committees routinely monitor the Group's material business risks. Due to the limitations inherent in any risk management system, the process for identifying, evaluating, and managing the material business risks is designed to manage, rather than eliminate risk. Besides it created to provide reasonable, but not absolute assurance against material misstatement or loss.

Since the Company has strong internal control systems which are further strengthened by periodic reviews as required under the Listing Regulations and SOX compliance by the Statutory Auditors, the CEO and CFO recommend to the Board continued strong internal ﬁnancial controls.

Based on the information provided, nothing has come to the attention of the Directors to indicate that any material breakdown in the function of these controls, procedures or systems occurred during the year under review. There have been no signiﬁcant changes in the Company's internal ﬁnancial controls during the year that have materially aﬀected or are reasonably likely to materially aﬀect its internal ﬁnancial controls.

There are inherent limitations to the eﬀectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even eﬀective disclosure controls and procedures can only provide reasonable assurance of achieving their objectives. Moreover, in the design and evaluation of the Company's disclosure controls and procedures, the management was required to apply its judgement in evaluating the cost-beneﬁt relationship of possible controls and procedures.

Further, the Audit Committee annually evaluates the internal ﬁnancial controls for ensuring that the Company has implemented robust systems/framework of internal ﬁnancial controls viz. the policies and procedures adopted by the Company for ensuring the orderly and eﬃcient conduct of its business, including adherence to Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable ﬁnancial information.

PREVENTION OF SEXuAL HARASSMENT AT WORKPLACE

The Company has zero tolerance for sexual harassment at workplace and has adopted a Policy on Prevention, Prohibition and Redressal of Sexual Harassment at Workplace in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder for prevention and redressal of complaints of sexual harassment at workplace.

As part of Vedanta Group, your Company is an equal opportunity employer and believes in providing opportunity and key positions to women professionals. The Group has endeavoured to encourage women professionals by creating proper policies to tackle issues relating to safe and proper working conditions and create and maintain a healthy and conducive work environment that is free from discrimination. This includes discrimination on any basis, including gender, as well as any form of sexual harassment. During the period under review, eight complaints were received andresolved. Four employees were separated on account of complaints. Your Company has constituted Internal Complaints Committee (ICC) for various business divisions and oﬃces, as per the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

VIGIL MECHANISM

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The Company has in place a robust vigil mechanism for reporting genuine concerns through the Company's Whistle-Blower Policy. As per the Policy adopted by various businesses in the Group, all complaints are reported to the Director - Management Assurance, who is independent of operating management and the businesses. In line with global practices, dedicated email IDs, a centralised database, a 24X7 whistle-blower hotline and a web-based portal have been created to facilitate receipt of complaints. All employees and stakeholders can register their integrity related concerns either by calling the toll-free number or by writing on the web-based portal which is managed by an independent third party. The hotline provides multiple local language options. All cases reported as part of whistle-blower mechanism are taken to their logical conclusion within a reasonable timeframe. After the investigation, established cases are brought to the Group Ethics Committee for decision-making. All Whistle-Blower cases are periodically presented and reported to the Company's Audit Committee. The details of this process are also provided in the Corporate Governance Report and the Whistle-Blower Policy is available on the Company's website atwww.vedantalimited.com.

DIVIDEND

With consistent dividend as a healthy sign of our sustained growth, our ﬁrm belief in percolating the beneﬁts of our business progress for widespread socio-economic welfare facilitates the equitable sharing of our economic value generated. Attaining steady operational performance and a harmonised market environment in continuation of the historical trends helped us to reaﬃrm the realisation of competent numbers for FY 2020.

The Company has declared interim dividend during the year out of the reserves of the Company and in compliance with the Dividend Distribution Policy:-

Type of Dividend	Date of Declaration	Record Date
1st Interim Dividend	February 27, 2020	March 7, 2020

Given the current market dislocation and uncertainties caused by the coronavirus pandemic, it is important to maximise ﬁnancial ﬂexibility across the group. Your board will decide on the size and timing of any future dividend payments once there is greater clarity on the outlook for the economy and commodity markets. Your Company believe this is the correct decision for all the stakeholders as we navigate through an unprecedented period of volatility for the global economy and our business.

The Directors do not recommend ﬁnal dividend for the ﬁnancial year ended March 31, 2020.

DIVIDEND DISTRIBuTION POLICY

In accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations') your Company has adopted a Dividend Distribution Policy formulated by the Board specifying the ﬁnancial parameters, factors and circumstances to be considered in determining the distribution of dividend to shareholders and/or retaining proﬁts earned by the Company. The policy aims to protect the interest of investors by ensuring complete transparency.

Your Company is in compliance with the dividend distribution policy as approved by the Board.

The Policy can be accessed on the website of the Company atwww.vedantalimited.com.

CREDIT RATING

Your Company is rated by CRISIL and India Rating and Research Private Limited on its various debt instruments. The details of ratings provided by the agencies is speciﬁed in the Corporate Governance Report.

POLICY AND ADVOCACY

Vedanta supports the mining, metal manufacturing and energy fuel extracting industry through progressive and responsible advocacy. We strive for unlocking greater value of these sectors and country's policies achieving better shape through levers of data analytics, deep legislative understanding, thought leadership and developmental idea exchange. We engage with industry associations and actively participate in public consultations which support the development agenda of the country. Our vast experience across mineral and metal value chain and geographical reach are utilised in prescribing the best practices in various policy matters. Our focus on advocacy eﬀorts always remains on economic development of the local, region and country where we operate, in a sustainable manner.

` 3.90

Rate of Dividend per share (face value ` 1 per share)

INVESTOR RELATIONS

Your Company has an active Investor Relations (IR) function which continuously strives for excellence by engaging with international and domestic investors. Your Company benchmarks global IR standards and aims at exceeding them. The Company proactively seek feedback from all stakeholders throughout the year.

Shareholder engagement

The Investor Relations team takes both formal and informal approach to engage with shareholders. The team interacts with investors at various platforms demonstrating consistent and clear communication between internal and external parties. Some of these forums include quarterly earnings calls, hosting Investor/Analyst Day, site visits for key businesses, one-on-one as well as group meetings and participation in sell-side conferences. The leadership teams from various businesses along with promoters of the Company as well as senior management consisting of the CEO and the CFO are also invited as required for some of these engagements. These proactive investor engagement activities and openness of senior leaders to interact with investors and analysts is well appreciated by all stakeholders.

Shareholder communication

Shareholders can contact us any time through our Investor Relations team, with contact details available online atwww.vedantalimited.com. Shareholder and analyst feedbacks are shared in a timely and structured manner with the Board through the Chairman, the Independent Directors, the CEO, the CFO and the Company Secretary. Ongoing communication with our stakeholders keeps the board and senior management abreast of their views and helps to gain insight.

Shareholder disclosures

Vedanta has set standards through the detailed and transparent disclosures on the Company's operational and ﬁnancial performance. Your Company had created its ﬁrst Integrated Report (for Financial Year 2018) and continued thereafter. The Company also started a new communication initiative which involves sending a brief update about the Company's performance and key events to its shareholders and other stakeholders on a regular basis. The dissemination of business updates through this "Investor Brief" has been well appreciated. Having a diverse shareholder base and multiple business verticals, demands enormous eﬀorts from an IR function to manage investors, sell-side analysts as well as ensuring a timely and complete business update is provided to all. As a key milestone in this continuingendeavour, your Company created a digital interactive microsite on the corporate website to provide an interactive experience beyond what is available in the annual and quarterly results materials.

KEY INITIATIVES WITH RESPECT TO VARIOuS STAKEHOLDERS

As a diligent driver of all-encompassing stakeholder growth, the Company undertakes signiﬁcant initiatives with respect to its employees, shareholders, investors, lenders, suppliers, customers, civil society, local community and Government authorities striving to accelerate its focus on HSE and sustainability. These initiatives are enlisted with detailed speciﬁcs in the Integrated Report section of the Annual Report.

CORPORATE GOVERNANCE REPORT

Upholding strong business ethics and implementing highest standards of corporate governance is an integral part of Vedanta's core values and is of prime importance to the eﬃcacy of our operational conduct and stakeholder management.

In our persistent endeavour to benchmark our policies and practices in the light of recent developments in the realm of corporate governance along with other regulatory reforms, your Company strives to fulﬁll its inherent responsibility to build sustainable growth, create value for all stakeholders, maintain investor conﬁdence and reinforce commitment towards good governance, transparent engagement, functional integrity and objective-oriented diligence.

A separate report on Corporate Governance setting out the governance structure and principal activities of the Board and its Committees, together with a Certiﬁcate from M/s S.R. Batliboi & Co LLP, Statutory Auditors of the Company, regarding compliance of conditions of Corporate Governance as stipulated under Listing Regulations is provided as an Annexure to the Corporate Governance Report forming part of Annual Report. A Certiﬁcate from the CEO and CFO of the Company, inter alia, conﬁrming the correctness of the ﬁnancial statements and cash ﬂow statements, adequacy of the internal control measures and timely reporting of matters to the Audit Committee, is also annexed to the Corporate Governance Report.

DIRECTORS, KEY MANAGERIAL PERSONNEL & SENIOR MANAGEMENT

Our Board continues to maintain a combined wealth of extensive leadership experience representing a plethora of complementary skills, attributes and perspectives in order to be equipped to navigate the operational, social, regulatory and geopolitical complexity in which our business operates. Leveraging of institutional knowledge and diversity of oversight supports the Board in enhancing its eﬀectiveness and contributes to better decision-making and long-term strategy of the Group.

The Senior Management, likewise, comprises of a multi-faceted group of leaders with substantial competencies

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in their respective ﬁelds derived from dedicated service guiding large and complex organisations as executive leaders. This tapestry of qualiﬁcations and positive attributes, in alignment with the Board, facilitates the maintenance of an appropriate mix of objectivity and professional experience directed towards larger organisational growth.

During FY 2020, your Company welcomed Mr. MK Sharma as an Independent Director of the Company. In the opinion of the Board, Mr. Sharma exhibited rich veracity and diverse experience in the areas of corporate governance, ESG, mergers and acquisitions, corporate restructuring and law. Based on his multi-disciplinary stints with membership of several Committees and leadership positions in various corporates, your Board believes that Mr. Sharma's induction continues to nurture the Board in broadening its overall eﬃciency and expertise.

Complementing Mr. Sharma's detailed proﬁle provided in the earlier section of the Annual Report, this statement forms a part of the Directors' Report in accordance with the Companies (Accounts) Amendment Rules, 2019 notiﬁed to hold eﬀect from December 1, 2019.

The detailed biographical information of each Board member, Key Managerial Personnel and Senior Management Personnel forms part of the Annual Report. Further, the dimensions of other directorships, skills and expertise in addition to the changes during the period under review are detailed in the Corporate Governance Report.

BOARD DIVERSITY & INCLuSION

Your Company diligently cognises a culture of diversity and inclusion in the Board as the pre-requisite for achieving long-term growth and development steered through eﬀective strategy and governance. In a bid to ensure timely anticipation of risks and opportunities while promoting the persuasive desire of the stakeholders for greater diversity, our Board reﬂects an appropriate balance of skills, professional experiences, personal backgrounds and leadership perspectives. The details of the key attributes of the Board members are elucidated in the Corporate Governance Report.

DIRECTORS SEEKING RE-APPOINTMENT Pursuant to the provision of Companies Act, 2013, Mr. GR Arun Kumar (DIN 01874769), Whole-Time Director & Chief Financial Oﬃcer of the Company, is liable to retire by rotation at the ensuing AGM and being eligible, has oﬀered himself for re-appointment. Accordingly, the appointment of Mr. GR Arun Kumar is being placed for approval of the members at the AGM. A brief proﬁle of Mr. GR Arun Kumar and other related information is provided in the AGM notice. The Board recommends his re-appointment at the AGM.

Further, Ms. Priya Agarwal, appointed as a Non-Executive Director for a period of 3 years w.e.f.

FAMILIARISATION PROGRAMME FOR BOARD MEMBERS

May 17, 2017, has been re-appointed by the Board on May 16, 2020 for another term of 3 years eﬀective May 17, 2020 subject to the conﬁrmation of the shareholders at the ensuing AGM.

A brief proﬁle of the Directors seeking re-appointment and other related information is provided in the AGM notice. Your directors recommend their re-appointment.

The detailed changes in the Board composition have been provided in the Corporate Governance report forming part of this Annual Report.

DECLARATION BY INDEPENDENT DIRECTORS The Company has received declaration from all the Independent Directors that they continue to meet the criteria of independence as provided under the Companies Act and Listing Regulations and comply with the Code for Independent Directors as speciﬁed under Schedule IV of the Act.

The Directors have also conﬁrmed that they are not aware of any circumstance or situation, which exists or may be reasonably anticipated, that could impair or impact their ability to discharge their duties with an objective independent judgement and without any external inﬂuence.

The Directors have further aﬃrmed their compliance with Rule 6(1) and 6(2) of Companies (Appointment and Qualiﬁcation of Directors) Rules, 2014.

POLICY ON DIRECTOR'S APPOINTMENT AND REMuNERATION

The Nomination & Remuneration Policy adopted by the Board on the recommendation of the Nomination & Remuneration Committee enumerates the criteria for assessment and appointment/re-appointment of Directors, Key Managerial Personnel (KMP) and Senior Management Personnel (SMP) on the basis of their qualiﬁcations, knowledge, skill, industrial orientation, independence, professional and functional expertise among other parameters with no bias on the grounds of ethnicity, nationality, gender or race or any other such discriminatory factor.

The Policy also sets out the guiding principles for the compensation to be paid to the Directors, KMP and SMP; and undertakes eﬀective implementation of Board familiarisation, diversity, evaluation and succession planning for cohesive leadership management.

With your Company continuing to comply with the Policy in true letter and spirit, the complete Policy is reproduced in full on our website atwww.vedantalimited.com and a snapshot of the Policy is elucidated in the Corporate Governance Report.

Your Company has in place, a systematic and structured programme for an edifying orientation and training of its newly inducted Directors in order to provide them with

an insight about the Company's business operations and organisational conduct. The program further safeguards regular updates to the existing Directors on the signiﬁcant changes, in turn, ensuring timely and informed decision-making.

The Board meetings are also meticulously planned in a coherent manner which enables keeping the Directors abreast with a wide range of topics entailing quarterly review presentations by the business CEOs; regulatory updates; and discussion proceedings on governance, risk, compliance, stakeholders, health, safety and environment among other matters.

The familiarisation programme and its methodology adopted for the Directors are construed under the Corporate Governance Report and can also be accessed on the website of the Company atwww.vedantalimited.com.

BOARD EVALuATION

An eﬀective Board is key to the establishment and delivery of a Company's strategy and towards the endeavour of your Board to continually assess and improve its eﬀectiveness and performance, the Company has in place a formal and rigorous process for evaluation of the Board, its Committees, the Chairman, the Individual Directors and the governance processes that support the Board's work.

As a step towards better governance practice, this year the Company, as a part of the rotation, has engaged another leading consultancy ﬁrm, to conduct the Board evaluation process which was facilitated through an online secured module ensuring transparent, eﬀective and independent involvement of the management. The evaluation was conducted through a tailored questionnaire having qualitative parameters and constructive feedback based on ratings. Recommendations arising from the evaluation process were considered by the Board to optimise its eﬀectiveness.

The outcome of the Board evaluation was discussed by the Nomination & Remuneration Committee and the Board at their meeting held on June 6, 2020.

A comprehensive disclosure on the parameters and the process of Board evaluation as well as the outcome thereof has been explicated in the Corporate Governance Report.

BOARD & COMMITTEE MEETINGS

The Board renders entrepreneurial leadership and governs business excellence for the entire Group. With the aim to operate eﬀectively and provide complete consideration to key integral matters, the Board has established various committees with clearly agreed reporting procedures and deﬁned scope of authority.

The Board in conjunction with its committees ensures transparency, responsibility and accountability in creating sustainable growth and long-term value for stakeholders.

AuDIT COMMITTEE

RISK MANAGEMENT COMMITTEE(1)

Other Committees

COMMITTEE OF DIRECTORS

SHARE & DEBENTuRE TRANSFER COMMITTEE

1. With eﬀect from June 6, 2020, the Risk Management Committee has been consolidated with the Audit Committee comprising of only Independent Directors.
2. Eﬀective May 16, 2020 Finance Standing Committee has been consolidated with the Committee of Directors.

In order to ensure timely and eﬀective decision-making, the Board and its Committees meet at regular intervals and undertake all-inclusive discussions and deliberations. During the FY 2020, the Board met seven (07) times.

A comprehensive update on the Board, its committees, their composition, terms and reference, meetings held during FY 2020 and the attendance of each member is detailed in the Corporate Governance Report.

All the recommendations made by each of the Committees were accepted by the Board.

Statutory Board Committees

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AuDITORS AND AuDITORS' REPORT AuDIT REPORTS:

ƒ The Statutory Auditors' report for FY 2019-20 does not contain any qualiﬁcation, reservation or adverse remark. The Auditors' report is enclosed with the ﬁnancial statements in the Annual Report.
ƒ The Secretarial Auditors' Report for FY 2019-20 does not contain any qualiﬁcation, reservation or adverse remark. The report in form MR-3 along with Annual Secretarial Compliance Report is enclosed as Annexure D to the Directors' Report.
ƒ As per the Listing Regulations, the auditors' certiﬁcate on corporate governance is enclosed as an Annexure to the Corporate Governance Report forming part of the Annual Report. The Certiﬁcate does not contain any qualiﬁcation, reservation or adverse remark.
ƒ A certiﬁcate from Company Secretary in Practice certifying that none of the directors on the Board of the Company have been debarred or disqualiﬁed from being appointed or continuing as directors of companies by the SEBI/Ministry of Corporate Aﬀairs or any such statutory authority forms part of the Corporate Governance Report.

AuDITORS:

ƒ The Company had appointed M/s Deloitte Haskins & Sells, LLP as the Internal Auditors of the Company for the FY 2019-20 to conduct the internal audit basis a detailed internal audit plan.
ƒ The Company has an independent in-house Management Assurance Services (MAS) team to manage the group's internal audit activity and that functionally reports to the Audit Committee.
ƒ The Board, on recommendation of the Audit Committee, has reappointed M/s Deloitte Haskins & Sells, LLP as the Internal Auditors of the Company for the FY 2020-21.

ƒ M/s S.R. Batliboi & Co. LLP, Chartered Accountants (Firm Registration No. 301003E) were appointed in June, 2016 as the Statutory Auditors of the Company till the conclusion of 56th AGM, to be held in calendar year 2021. The report of the Statutory Auditors along with notes to Schedules is enclosed to this Report. The report read with notes to accounts are self-explanatory and therefore, do not call for any further comments or explanation under Section 134 (3)(f) of the Act.
ƒ The Company has received a certiﬁcate that they are not disqualiﬁed and continue to remain eligible to act as the auditors of the Company.
ƒ The auditors have also furnished a declaration conﬁrming their independence as well as their arm's length relationship with the Company. The Audit Committee reviews the independence and objectivity of the auditors and the eﬀectiveness of the audit process.
ƒ The Statutory Auditors were present at the last AGM of the Company.
ƒ The Board had appointed M/s Chandrasekaran & Associates (Firm Registration No. 002500), Practicing Company Secretaries to conduct the secretarial audit of the Company for the FY 2019-20.
ƒ The Secretarial Audit Report for the ﬁnancial year ended March 31, 2020 is annexed as Annexure D to this Report and conﬁrms that the Company has complied with the provisions of the Act, Rules, Regulations and Guidelines and that there were no deviations or non-compliances.
ƒ Pursuant to SEBI circular no. CIR/CFD/CMO1/27/2019 dated February 8, 2019, the company has also undertaken an audit for all applicable compliances as per the Listing Regulations and circular guidelines issued thereunder. The Annual Secretarial Compliance Report for the FY 2019-20 has also been submitted to the Stock Exchanges within the stipulated timeline.
ƒ The Company has received a certiﬁcate conﬁrming their eligibility and consent to act as the Auditors.
ƒ The Board has reappointed M/s Chandrasekaran & Associates as the Secretarial Auditors for FY 2020-21.
ƒ The Secretarial Auditors were also present at the last AGM of the Company.
ƒ In terms of Section 148 of Companies Act, 2013 read with rules made thereunder, your Company is required to have the audit of its cost records conducted by the Cost Accountant in Practice.
ƒ The Board, on recommendation of the Audit Committee had appointed the following Cost Accountants as the Cost Auditors for conducting the audit of cost records of the Company for the FY 2019-20: ƒ M/s Shome and Banerjee - Oil & Gas Business; and ƒ M/s Ramnath Iyer & Co. - other business segments
ƒ M/s Ramnath Iyer & Co., Cost Accountants were nominated as the Lead Cost Auditors.
ƒ The Company had received a certiﬁcate conﬁrming their eligibility and consent to act as the Auditors.
ƒ The said auditors have been re-appointed for FY 2020-21 as well. A resolution seeking ratiﬁcation of the remuneration payable to the Cost Auditors for
FY 2021 forms part of the notice of the ensuing AGM.

ƒ The cost accounts and records of the Company are duly prepared and maintained by the Company as required under Section 148(1) of the Act pertaining to cost audit.

REPORTING OF FRAuDS BY AuDITORS

During the year under review, the Statutory Auditors, Cost Auditors and Secretarial Auditor have not reported any instances of frauds committed in the Company by its oﬃcers or employees to the Audit Committee under Section 143(12) of the Companies Act, 2013, details of which needs to be mentioned in this Report.

DETAILS OF LOANS/ GuARANTEES/ INVESTMENT MADE BY THE COMPANY

The particulars of loans given, investments made, guarantees given and securities provided along with the

COMMERCIAL PAPERS

The Commercial Papers issued by the Company are listed on National Stock Exchange of India Limited. The details of the Commercial Papers outstanding as of March 31, 2020 have been provided in the Corporate Governance Report.

FIXED DEPOSITS

As at March 31, 2020 deposits amounting to ` 54,000 remains unclaimed. Since the matter is sub judice, the Company is maintaining status quo.

TRANSFER TO RESERVES

Coupon Rate

8.90% Secured Rated Listed Redeemable Non-Convertible Debentures - Series I 9.20% Secured Rated Listed Redeemable Non-Convertible Debentures - Series II 8.75% Secured Rated Listed Redeemable Non-Convertible Debentures

Date of Allotment 09/12/19

9.20% Secured Rated Listed Redeemable Non-Convertible Debentures

09/12/19

30/01/20

25/02/20

The aforesaid debentures are listed on BSE Limited.

Further, the details of NCDs outstanding debentures as of March 31, 2020 have been detailed in the Corporate Governance Report.

The Company proposes Nil transfer to General Reserve for the ﬁnancial year.

CAPITAL STRuCTuRE

The Authorised Share Capital of the Company is ` 74,120,100,000 divided into 44,020,100,000 number of equity shares of ` 1/- each and 3,010,000,000 Preference Shares of ` 10/- each. There was no change in the capital structure of the Company during the period under review.

purpose for which the loan or guarantee or security is proposed to be utilised as per the provisions of Section 186 of the Act are provided in the standalone ﬁnancial statements. (Please refer to Notes to the standalone ﬁnancial statements).

DEBENTuRES

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During the ﬁnancial year, your Company raised ` 4,920 crores through issuance of secured, rated, redeemable, non-cumulative, non-convertible debentures (NCD) of face value of ` 1,000,000 each on private placement basis as per the following details:

No. of NCDs 9,000

Total Amount Tenor 900 2 yearsMaturity Date 09/12/21

7,500

750 3 years

09/12/22

12,700

1,270 2 years & 5 months

30/06/22

20,000

2,000 10 years

25/02/30

The details of share capital as on March 31, 2020 is provided below:-

Particulars	Amount (`)
Authorised Share Capital	74,120,100,000
Paid-up Capital	3,717,504,871
Listed Capital	3,717,196,639
Shares under Abeyance pending allotment	308,232

* Out of the total paid-up capital of 3,717,504,871 equity shares, 308,232 equity shares are pending for allotment and listing and hence kept under abeyance since they are sub-judice and further 261,780,208 equity shares are held in the form of 65,445,052 ADSs as on March 31, 2020.

uNCLAIMED SHARES

Pursuant to the SEBI Circular and Regulation 39 of the Listing Regulations regarding the procedure to be adopted for unclaimed shares issued in physical form in public issue or otherwise, the Company has a separate demat account in the title of 'Vedanta Limited

Financial Year	Type of Dividend	Dividend declared on	to IEPF (in `)	Date of transfer to IEPF
2011-12	Final Dividend	23/06/12	1,812,052.00	20/08/19
2011-12	Final Dividend	03/07/12	9,864,428.00	27/08/19
2011-12	Final Dividend	14/07/12	5,971,201.00	11/09/19
2012-13	Interim Dividend	23/10/12	6,403,271.00	17/12/19
2012-13	Interim Dividend	28/10/12	1,449,220.00	20/12/19
2012-13	Interim Dividend	31/10/12	4,450,855.00	21/12/19
Total	29,951,027.00

DIRECTORS' REPORT CONTINUED...

- Unclaimed Suspense Account' with M/s Karvy Stock Broking Limited. The details of shares lying in the unclaimed suspense account are provided below:-

Description

Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year

Number of shares transferred to the unclaimed suspense account during the year Number of shareholders who approached issuer for transfer of shares from suspense account during the year

Number of shareholders to whom shares were transferred from suspense account during the year

Number of shares transferred to IEPF account pursuant to Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 read with Amendment Rules, 2017

Aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year. The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares

TRANSFER OF uNPAID AND uNCLAIMED AMOuNTS TO INVESTOR EDuCATION AND PROTECTION FuND (IEPF)

In accordance with the provisions of Companies Act and IEPF Rules, the Company is required to transfer the following amounts to IEPF:-

ƒ Dividend amount that remains unpaid/unclaimed for a period of seven (7) years; ƒ Shares on which the dividend has not been paid/ claimed for seven (7) consecutive years or more.

Your Company in its various communications to the shareholders from time to time, requests them to claim the unpaid/unclaimed amount of dividend and shares

Dividend transferred to IEPF during the year

Total

Unpaid dividend on the shares on which there was a speciﬁc order of court/ tribunal/ statutory authority restraining transfer of such shares and dividend thereon, were not transferred to IEPF pursuant to Section 124 of the Companies Act, 2013 and Rule 6 of IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016 including statutory modiﬁcations or re-enactments thereof.

Dividend declared during the ﬁnancial year transferred to IEPF

Financial Year 2019-20

Type of Dividend

Interim Dividend (1st)

due for transfer to the IEPF account established by Central Government. Further, in compliance with the IEPF (Accounting, Audit, Transfer and Refund) Rules, 2016 (IEPF Rules) including statutory modiﬁcations thereof, the Company publishes notice in newspapers and also sends speciﬁc letters to all the shareholders, whose shares are due to be transferred to IEPF, to enable them claim their rightful dues.

Dividend declared on 27/02/20

The details of dividend transferred during the ﬁnancial year is provided below:-

Amount transferred

Amount transferred to IEPF (in `)

Shares transferred/credited to IEPF

During the year, the Company transferred 2,126,129 equity shares of ` 1/- each comprising of 3,898 shareholders to IEPF.

The Company has also uploaded the details of unpaid and unclaimed amounts lying with the Company as on July 11, 2019 (date of last AGM) on the Company's websitewww.vedantalimited.com. Further, the details of equity shares transferred are available on the Company's websitewww.vedantalimited.com.

The dates on which unclaimed dividend and their corresponding shares would become liable to be transferred to the IEPF during the ﬁnancial year 2020-21 is provided below:-

Dividend to be transferred to IEPF during the ﬁnancial year 2020-21

Amount as on
Date of Declaration of	Date of completion of	Due date for transfer	March 31, 2020
Particulars	Dividend	seven years	to IEPF
Interim Dividend 2012-13 (2nd)	29/04/13	03/06/20	03/07/20	7,457,197.40
Final Dividend 2012-13	06/06/13	11/07/20	10/08/20	1,846,935.00
Final Dividend 2012-13	27/06/13	01/08/20	31/08/20	736,304.80
Final Dividend 2012-13	24/07/13	28/08/20	27/09/20	6,005,701.00
Interim Dividend 2013-14	22/10/13	26/11/20	26/12/20	4,298,472.00
Interim Dividend 2013-14	31/10/13	05/12/20	04/01/21	14,271,742.50
Total	34,616,352.70

(in `)

Ms. Prerna Halwasiya, Company Secretary & Compliance Oﬃcer of the Company is designated as the Nodal Oﬃcer under the provisions of IEPF. The contact details can be accessed on the website of the Company atwww.vedantalimited.com.

SuBSIDIARIES, JOINT VENTuRES AND ASSOCIATE COMPANIES

Your Company has 49 subsidiaries (15 direct and 34 indirect) as at March 31, 2020, as disclosed in the notes to accounts.

During the year and till date the following changes have taken place in subsidiary companies:

ƒ Vedanta Star Limited, a wholly owned subsidiary company has been merged with Electrosteel Steels

Limited w.e.f. March 25, 2020.

There has been no material change in the nature of the business of the subsidiaries.

As at March 31, 2020, the Company has 6 associate companies and joint ventures.

Associate Companies and Joint Ventures:

ƒ RoshSkor Township (Proprietary) Limited
ƒ Gaurav Overseas Private Limited
ƒ Goa Maritime Private Limited
ƒ Madanpur South Coal Company Limited
ƒ Rampia Coal Mines and Energy Private Limited
ƒ Rosh Pinah Health Care (Proprietary) Limited

The shareholders whose shares/ dividends have been transferred to IEPF can claim the same from IEPF in accordance with the prescribed procedure and on submission of such documents as prescribed under the IEPF Rules. The process for claiming the unpaid dividend/shares out of the IEPF can be accessed atwww.iepf.gov.in and on the website of the Company atwww.vedantalimited.com.

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As required under Listing Regulations, the Consolidated Financial Statements of the Company and its subsidiaries and joint ventures, prepared in accordance with Ind AS 110 issued by the Institute of Chartered Accountants of India, form part of the Annual Report and are reﬂected in the Consolidated Financial Statements of the Company.

During the year, the Board of Directors have reviewed the aﬀairs of the subsidiaries. Pursuant to Section 129(3) of the Companies Act, 2013 (the Act), a statement containing the salient features of the ﬁnancial statements of the subsidiary and associate companies is attached to the ﬁnancial statements in Form AOC-1. The statement also provides details of performance and ﬁnancial position of each of the subsidiaries and their contribution to the overall performance of the Company.

In accordance with Section 136 of the Act, the audited Standalone and Consolidated ﬁnancial statements of the Company along with relevant notes and separate audited accounts of subsidiaries are available on the website of the Company atwww.vedantalimited.com. Copies of the ﬁnancial statements of the Company and of the subsidiary companies shall be made available upon request by any member of the Company. Additionally, these ﬁnancial statements shall also be available for inspection by members on all working days during business hours at the Registered Oﬃce of the Company.

In accordance with Regulation 16(1)(c) of the SEBI Listing Regulations, your Company has the following material subsidiary companies as on March 31, 2020:- ƒ Hindustan Zinc Limited (HZL), a listed subsidiary of the Company; and ƒ Cairn India Holdings Limited (CIHL),

MATERIAL SuBSIDIARIES

unlisted subsidiary

The Company has also in place a policy on determination of material subsidiaries and the same may be accessed atwww.vedantalimited.com. This objective of the Policy is to determine the Material Subsidiaries and Material Unlisted Indian Subsidiary of the Company and to provide the governance framework for such subsidiaries.

RELATED PARTY TRANSACTIONS

Your Company has in place a Policy on Related Party Transaction (RPT Policy) formulated in line with the provision of the Companies Act and Listing Regulations. The Policy may be accessed atwww.vedantalimited.com.

The Policy sets out the philosophy and processes to be followed for approval and review of transactions with Related Party and intends to ensure that proper reporting, approval and disclosure processes are in place for all transactions with Related Parties.

A detailed landscape of all RPTs, specifying the nature, value, and terms and conditions of the transaction is presented to the Audit Committee. Also, a Related Party Transactions Manual-Standard Operating Procedures has been formulated to identify and monitor all such transactions.

During the ﬁscal 2019-20, all the contracts/ arrangements/transactions entered into by the Company with the related parties were in the ordinary course of business and on an arm's length basis and were in compliance with the provisions of the Companies Act and Listing Regulations.

All Related Party Transactions were subject to independent review by a reputed accounting ﬁrm to establish compliance with the requirements of Related Party Transactions under the Companies Act, 2013 and Listing Regulations.

Further, there have been no materially signiﬁcant RPTs during the year pursuant to the provisions of the Companies Act and Listing Regulations. Accordingly, the disclosure required u/s 134(3)(h) of the Act in Form AOC-2 is not applicable to your Company.

SIGNIFICANT & MATERIAL ORDERS PASSED BY THE REGuLATORS OR COuRTS OR TRIBuNALS

Provided below are the signiﬁcant and material orders which have been passed by any regulators or courtsor tribunals against the Company impacting the going concern status and Company's operations in future.

Iron-Ore Division - Goa Operations

Supreme Court (SC) in the Goa Mining matter in 2014 declared that the deemed mining leases of the lessees in Goa expired on November 22, 1987 and the maximum of 20 years renewal period of the deemed mining leases in Goa under the Mines and Minerals (Development and Regulation) (MMDR) Act had also expired on November 22, 2007 and directed state to grant fresh mining leases.

Thereafter, various mining leases were renewed by the state government before and on the date the MMDR Amendment Ordinance 2015 came into eﬀect

(i.e. January 12, 2015).

These renewal of mining leases were challenged before the SC by Goa Foundation and others in 2015 as being arbitrary and against the judgement of the SC in the earlier Goa mining matter. The SC passed the judgement in the matters on February 27, 2018 wherein it set aside the second renewal of the mining leases granted by the State of Goa. The court directed all lease holders operating under a second renewal to stop all mining operations with eﬀect from March 16, 2018 until fresh mining leases (not fresh renewals or other renewals) in accordance with the provisions of the MMDR Act, 1957 and fresh environmental clearances are granted.

Subsequently, mining lessees and other mining stakeholder have ﬁled applications in the pending Abolition Act matter for resumption of mining in the State. The Central Government has also ﬁled an early hearing application in the long pending abolition matter.

We have now ﬁled Special Leave Petition in the Supreme Court in appeal from the HC order against a non-consideration of our representation seeking an amendment of the mining lease till 2037 based on the provisions on the MMDR Amendment Act, 2015. This will be heard in due course. SC has on February 10, 2020 allowed the impediment of Goa foundation and another impleader. The matter will be listed in due course.

Copper Division

Copper division of Vedanta Limited has received an order from Tamil Nadu Pollution Control Board (TNPCB) on April 9, 2018 whereby they have rejected the Company's application for renewal of Consent to Operate (CTO) for the 400,000 Metric Tonnes Per Annum (MTPA) Copper Smelter plant in Tuticorin. In furtherance to the order of TNPCB rejecting the Company's application, the Company decided to shut its Copper smelting operations at Tuticorin and has ﬁled an appeal with TNPCB Appellate authority against the order. During the pendency of the appeal the TNPCB vide its order dated May 23, 2018 ordered disconnection of electricity supply and closure of the Company's Copper Smelter plant. Post this the Government of Tamil Naduon May 28, 2018 ordered the permanent closure of the plant. The Company challenged the same in the National Green Tribunal (NGT) which passed a favorable order for reopening of the plant. The order was appealed by the TNPCB and the State of Tamil Nadu in the Supreme Court. The Supreme Court passed an order upholding the appeal and directing the Company to approach the Madras High Court for relief. The Company has ﬁled a writ petition in the Madras High Court that is currently reserved for orders.

In the meantime, the Madurai Bench of the High Court of Madras in a public interest litigation ﬁled against Vedanta by Fathima Babu held through its order dated May 23, 2018, that the application for renewal of the environmental clearance for the expansion project shall be processed after a mandatory public hearing and the said application shall be decided by the competent authority on or before September 23, 2018. In the interim, the High Court ordered Vedanta to cease construction and all other activities on site for the proposed expansion project with immediate eﬀect. Currently, the Ministry of Environment, Forest and Climate Change ("MoEF") has updated on its website that Vedanta Limited's environmental clearance for expansion project will be considered for ToR either upon verdict of the NGT case or upon ﬁling of a Report from the State Government/ District Collector, Thoothukudi. Separately, SIPCOT through its letter dated May 29, 2018, cancelled 342.22 acres of the land allotted to Vedanta Limited for the proposed expansion project. Further, the TNPCB issued order on June 7, 2018, directing the withdrawal of the consent to establish for the expansion project, which is valid until December 31, 2022. In a writ ﬁled before Madras High Court Madurai Bench challenging the lease cancellation order, Madras High Court through order dated October 3, 2018 has granted an interim stay in favour of the Company cancelling on the cancellation of 342.22 acres of the land allotted.

Further, June 7, 2018, TNPCB withdrew the CTE granted for expansion project for a period of ﬁve years. The Company has ﬁled Appeals before the TNPCB Appellate Authority challenging withdrawal of CTE by the TNPCB and the matter is next listed for hearing on June 26 2020.

CHANGE IN THE NATuRE OF BuSINESS, IF ANY There is no change in the nature of business of your Company during the year under review.

FAILuRE TO IMPLEMENT ANY CORPORATE ACTION There were no instances where the Company failed to implement any corporate action within the speciﬁed time limit.

SECRETARIAL STANDARDS

271-502

The Directors state that applicable Secretarial Standards as issued by the Institute of Companies Secretaries of India have been duly followed and complied by the Company.

ANNuAL RETuRN

An extract of the Annual Return in prescribed form MGT-9 is annexed hereto as 'Annexure C' to the Director's Report.

MATERIAL CHANGES & COMMITMENT AFFECTING THE FINANCIAL POSITION OF THE COMPANY

No material changes and commitments have occurred subsequent to the close of the ﬁnancial year till the date of this Report which may aﬀect the ﬁnancial position of the Company.

MATERIAL EVENTS SuBSEQuENT TO CLOSE OF FINANCIAL YEAR

Your Company vide letter dated May 12, 2020 has informed the stock exchanges that the Company has received a letter dated May 12, 2020 from one of the members of the promoter and promoter group of the Company ("Promoter Group") namely, Vedanta Resources Limited ("VRL") wherein VRL has expressed its intention to, either individually or along with one or more subsidiaries, acquire all fully paid-up equity shares of the Company ("Equity Shares") that are held by the public shareholders of the Company (as deﬁned under the Delisting Regulations, to be referred to as "Public Shareholders") and consequently voluntarily delist the Equity Shares from BSE Limited and National Stock Exchange of India Limited, the recognised stock exchanges where the Equity Shares are presently listed ("Stock Exchanges"), in accordance with the Delisting Regulations ("Delisting Proposal") and if such delisting is successful, then to also delist the Company's American Depositary Shares from the New York Stock Exchange ("NYSE") and deregister the Company from the Securities and Exchange Commission ("SEC"), subject to the requirements of the NYSE and the SEC.

Further, the board of directors of the Company in their meeting held on May 18, 2020 have considered and granted their approval for the said Delisting Proposal and to seek shareholders' approval for the said proposal.

The complete details can be accessed atwww.vedantalimited.com.

ENERGY CONSERVATION, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OuTGO

The information on conservation of energy, technology absorption stipulated under Section 134(3)(m) of the Act read with Rule 8 of the Companies (Accounts) Rules, 2014, is annexed herewith as 'Annexure E'

Particulars

The details of the Foreign Exchange Earnings and Outgo are as follows:

Earnings in foreign currency

CIF Value of Imports

Expenditure in foreign currency	1,357	4,026
Earnings in foreign currency	16,462	18,596
CIF Value of Imports	13,512	19,010

(` in crore)

Year Ended March 31, 2020

Year Ended March 31, 2019

LEGAL, COMPLIANCE, ETHICS AND GOVERNANCE FuNCTION

Through its concerted eﬀorts to generate value while keeping integrity at the forefront, the Legal function of your Company is a valued partner in providing regulatory support and gauging the viability of strategic assistance for business partnership and expansion. It ensures advisory and compliance services pertaining to existing regulations and legislative developments for facilitating business agenda in the areas of eﬀective claims and contract management, mergers and acquisitions, dispute resolution, litigation and adherence to competition, business ethics and governance.

With the aim to ensure smooth operations and safeguard interests of your Company for business growth and sustenance in an evolving, ambiguous and complex environment, the function continues to focus on presenting areas of opportunities; mitigating risks; providing proactive assistance to other functions and departments; and bringing about policy changes based on persistent interaction with various Government bodies and industrial associations like CII and FICCI.

As newer technologies continue to transform the market, your Company ensures adeptness in mechanisms to safeguard the data security and privacy of our stakeholders with enhanced legal and security standards. Simultaneously, to meet the growing business needs, the Legal function continues to seek and identify technological opportunities while harnessing existing know-how to streamline compliance frameworks, litigation management and conduct online ethics awareness training.

Our organisational values and principles are made applicable to all our employees through our Code of Business Conduct and Ethics. In a bid to create a better understanding of its practical implications, the Legal function conducts an annual online ethics training module to necessitate all employees to mandatorily embrace the values and principles embodied as a part of the afore-mentioned Code. Additionally, the function drives an Ethics Compliance Month initiative for raising awareness by conduct of employee trainings in areas of ethical concern such as insider trading, prevention ofsexual harassment, anti-bribery, anti-corruption and anti-trust laws through use of interactive learning tools.

Through our Supplier Code of Conduct, we also ensure that third parties, including their employees, agents and representatives who have a business relationship with your Company, are bound by industry standards as well as applicable statutory requirements concerning labour and human rights; health, safety and environment; and business integrity.

DIRECTORS RESPONSIBILITY STATEMENT Pursuant to Section 134 of the Companies Act, 2013, your Directors, to the best of their knowledge and belief, hereby state that:-

(a) in the preparation of the annual accounts, the applicable accounting standards has been followed and there are no material departures from the same;
(b) they have selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of aﬀairs of the Company at the end of the ﬁnancial year, i.e. March 31, 2020 and of the proﬁt and loss of the Company for that period;
AWARDS AND RECOGNITIONS
Your Company has maintained the highest standards of corporate governance. In its constant quest for growth and excellence, your Company has been winning accolades and is delighted to receive phenomenal share of recognitions and awards at various forums for its unique innovations and contributions towards its stakeholders & the society as a whole.
(c) they have taken proper and suﬃcient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the Company's assets and for preventing and detecting fraud and other irregularities;
(d) the annual accounts have been prepared on a going concern basis;
(e) they have laid down internal ﬁnancial controls to be followed by the Company and that such internal ﬁnancial controls are adequate and are operating eﬀectively; and
(f) proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating eﬀectively.

These acknowledgements are testament of the Company's progress and its commitment towards delivering value for all its stakeholders.

The details of the key honours received by the Company during the years have been elucidated in separate section in the Annual Report.

ACKNOWLEDGEMENT

Your Directors wish to place on record, their sincere appreciation to the Central and State Government Authorities, Bankers, Stock Exchanges, Financial Institutions, Analysts, Advisors, Local Communities, Customers, Vendors, Business Partners, Shareholders and Investors forming part of the Vedanta family for their continued support, assistance and encouragement extended to us during the year.

Our business was built with a simple mission envisioned by the Group's Chairman, Mr. Anil Agarwal, "To create a leading global natural resource company." In a bid to accomplish the mission, the Company is deftly managed by an adroit set of leaders with global and diverse experience in the sector. The professionally equipped and technically sound management has set progressive policies and objectives, follows global practices, all with a pragmatic vision to take the Company ahead to the next level.

We would also like to take this opportunity to extend our earnest regard to all our employees for their zealous enthusiasm and interminable eﬀorts directed towards lodging signiﬁcant contributions to the growth of the Company.

271-502

We further undertake to express our heartiest gratitude to all our stakeholders for their unﬂinching faith in their Company.

We look forward for bestowal of your support as we diligently strive to deliver sustained value for our stakeholders and inscribe on the footprints of nation building for one of the fastest growing economies of the world.

For and on behalf of the Board of Directors

Anil Agarwal

Non-Executive Chairman DIN: 00010883

Place: Mumbai Date: June 6, 2020

ANNEXURE A

ANNuAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY ACTIVITIES

AS PRESCRIBED uNDER SECTION 135 OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (CORPORATE SOCIAL RESPONSIBILITY POLICY) RuLES, 2014

1. A brief outline of the Company's CSR policy, including overview of projects or programmes proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programmes:
Vedanta Limited ﬁrmly believes in the coexistence
of business and communities and is committed to
the development of an eco-system of prosperity in
the society around operations.
As a responsible corporate citizen, we believe that
our neighbourhood communities are our primary
stakeholders and we seek to build mutually
supportive relationships with them. It is this
integration of business and CSR which provides
us the social licence to operate and ushers in
a diﬀerent developmental paradigm towards
sustainable change in society. As part of our CSR
policy, we believe in partnering with government
agencies, development organisations, corporates,
civil societies & community-based organisations to
implement durable and meaningful initiatives.
We also believe that our employees have the
potential to contribute towards building strong
communities through sharing their knowledge
and expertise. Hence, we proactively create
opportunities whereby employees can also connect
and contribute.
The Company complies with Section 135 of the
Act and the approach is focused on long-term
programmes aligned with community needs
and national priorities, including Sustainable
Development Goals. There are ten broad thematic
areas under which the Company undertakes its
community development projects. The Nandghar
Project is among the Company's ﬂagship
national initiatives, which aims to build new-age
Anganwadis for ensuring the health and learning of
young children in rural areas, and also for becoming
a platform of women's empowerment and skilling.
More on Vedanta's CSR policy may be seen at
www.vedantalimited.com.
2. The Composition of the CSR Committee:

As on March 31, 2020, the Company's Corporate Social Responsibility (CSR) Committee comprised of seven (7) members including four

(4) Independent Directors, one (1) Whole-Time Directors and two (2) Non-Executive Director as per below details:-

Name	Designation
Mr. MK Sharma	Chairman, Independent
Director
Mr. K Venkataramanan	Independent Director
Mr. Aman Mehta(1)	Independent Director
Mr. UK Sinha	Independent Director
Ms. Priya Agarwal	Non-Executive Director
Mr. Tarun Jain(2)	Non-Executive Director
Mr. Srinivasan	Whole-Time Director & CEO
Venkatakrishnan(3)

(1) Mr. Aman Mehta ceased to be Independent Director of the Company eﬀective close of business hours from May 16, 2020.
(2) Mr. Tarun Jain ceased to be a Non-Executive Director w.e.f. April 1, 2020.
(3) Mr. S Venkatakrishnan resigned from the position of Whole-Time Director & CEO w.e.f. close of business

hours on April 5, 2020.
3. Average net proﬁt of the Company for the three ﬁnancial years
The average net proﬁt of the Company for the last
three ﬁnancial years is ` 626 crores.
4. Prescribed CSR Expenditure (two percent of the amount shown as in item 3 above):
Base on the average net proﬁt of the Company for the last three ﬁnancial years, the Company is required to spend ` 13 crores on its CSR activities. The Company as a good corporate citizen has spent ` 52.66 crores in FY 2019-20 on its CSR activities.

5&6. Details of CSR spent during the ﬁnancial year and in case the Company has failed to spend the two per cent of the average net proﬁt of the last three ﬁnancial years or any part thereof, the Company shall provide the reasons for not spending the amount in its Board report.

The Company has invested ` 52.66 crores in the

year 2019-20 under diﬀerent projects across its

operations. This reaﬃrms the commitment of

Company to ensure sustainable development of

its business and community together. The detailed

business unit wise CSR spend has been given in the

required format.

INTEGRATED REPORTMANAGEMENT REVIEW

06-115

116-167

On a consolidated basis, the detailed CSR spent for FY 2019-20 is provided below:-

Vedanta Limited (Standalone) (A)	52.66
Vedanta Subsidiaries (India) (B)
Talwandi Sabo Power Limited (TSPL)	1.12
Hindustan Zinc Limited (HZL)	131.65
Bharat Aluminium Company Limited (BALCO)	5.86
BALCO Hospital	77.53
Sesa Resources Limited (SRL)	7.27
Sesa Mining Corporation Limited (SMCL)	0.00
Electrosteel Steels Limited (ESL)	1.52
Total (B)	224.95
Vedanta Subsidiaries (Global) (C)
Zinc International
(Skorpion Zinc (SZ) & Black Mountain Mining Proprietary Limited (BMM ))	18.85
Total (C)	18.85
Total CSR Spent	296.46

STATUTORY REPORTS

168-270

271-502

Spend FY 2020

A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and Policy of the Company.

The CSR Committee of the Company hereby conﬁrms that the implementation and monitoring of CSR Policy, is in compliance with CSR objectives and policy of the Company.

MK Sharma

Non-Executive and Independent Director

(Chairman of CSR Committee)

DIN: 00327684

Sunil Duggal

Chief Executive Oﬃcer

Sl. CSR Project or Activity No. Identiﬁed

49 Evening study centerEducation
50 Girl child education promotionEducation
56 Pediatric block construction
55 Blood donation camp
54 Summer camp
53 Sterlite school
52 Educational Support
51 Scholarship
Education Education Education Education Health Health
57 Mobile health unit
58 Govt. Hospital maintenanceHealth Health
59 Vision to all (eye camp)Health

62 Medical Assistance programme
61 Sterlite hospital
60 Special camps
Health Health Health
63 Child friendly village
64 Nandghar
Child Care Children Well-being & Education
65 Tree plantation
Environment
Sector in which the project is covered
66 Establishment of Kitchen Agriculture Gardening - Distribution of seed kits to families
67 Irrigation channel cleaningAgriculture
68 Cattle Camp
Animal husbandry
69 Youth Resource CenterYouth Development
70 Livelihood support
71 Sports
Livelihood Sports Development
72 Women Resource Center Women
Empowerment
73 Infrastructure developmentRural Development
Sterlite CopperProject or ProgrammeAreaName of District
Thoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi Thoothukudi
Thoothukudi Thoothukudi Thoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi Thoothukudi Thoothukudi Thoothuudi Thoothukudi ThoothukudiThoothukudi Thoothukudi Thoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi Thoothukudi Thoothukudi ThoothukudiThoothukudi ThoothukudiThoothukudi Thoothukudi
74 Drinking water
Drinking water Thoothukudi Thoothukudi
75 Model village
Model villageThoothukudi Thoothukudi
76 Audit, Study and othersProgramme & Thoothukudi Thoothukudi Admin
77 Cultural

Cultural Development

Sub-Total

Thoothukudi Thoothukudi

271-502

Amount Spent*Cumulative

Amount Outlay*Direct Overheads

Spend till Amount Spent, Direct reporting or implementing period agency

1.00

0.05

-0.05 Thulasi social trust/

Bell education and women empowerment society/Dhaayagam social welfare trust)

0.30

0.25

-0.25 Humana People to

People India

4.00 -3.99

- - - - - -

3.99 Direct

0.01

0.01 Direct

7.00 -

0.14

0.14 Mukesh Associates

0.02

0.02 Direct

0.01

0.00 -

0.00 Direct

0.75

- Direct

0.50 0.06

0.03 0.04

- -

0.03 Direct
0.04 Direct

0.04

- Aravind Eye hospital

0.10 10.00 -- - 0.33 0.01 -

- - - - -

- Direct

- Mukesh Associates 0.33 Direct

0.02 0.30

0.01 Direct

- NA

4.00

4.44

-4.44 APM, Sakthi Nursery garden, royal agencies

0.03

- Direct

0.60

0.20

-0.20 Direct

0.05

- Direct

2.50

0.08

-0.08 Seetha Skill center

- 0.20

0.06 0.17

- -0.06 Direct 0.17 Direct

3.72

0.34

-0.34 Thulasi social trust/

Bell education and women empowerment society/Dhaayagam social welfare trust)

1.00

0.82

-0.82 Direct

1.30

0.90

-0.90 Vijay enterprises, Sri sudalai enterprises, Liya francis aqua water

1.00

- NA

2.55

0.23

0.23 NA

-0.08

-0.08 Direct

41.03

11.95

0.23

12.18

Sector in whichVedanta Limited - Cairn, Oil & GasProject or ProgrammeSl. CSR Project or Activity No. Identiﬁed

the project is covered

89 Jeevan Amrit (Safe Drinking Water)
90 Maru Sagar (DairyDrinking Water Rajasthan & Sanitation
AgricultureDevelopment) in Barmer & Animal
91 Support to Primary Health Centre (S'yanam) - Support of medical staﬀs
92 Annual CSR Contribution towards Rural Development projects in East Godavari

93 School Sanitation Project (Improving sanitation & drinking water facilities in 28 schools)
94 Cairn Pink City Half Marathon (4th Edition) focused on ﬁtness & health programs in Barmer & Jaipur
95 Maru Samvad Project
HusbandryHealthcareCommunity Infrastructure developmentChildren Wellbeing & EducationSports & Culture RajasthanIEC & Days
(IEC through community of Nationalthreatre tool)
Importance & Relief
96 Contribution to Chief Minister's Relief Funds (Assam Flood)
IEC & Days of National Importance & Relief
97 Shifting of Solar Mini Grid Plant from Rawatsar to CEC, Barmer and Solar Power back Up for Kawas RO Plant in BarmerEnvironment & Sustainability
Area
RajasthanAndhra PradeshAndhra PradeshRajasthanRajasthanAssamRajasthan
98 Project Divyang (Support to 10 Indian Para athletes from Rajasthan and Gujarat)Sports & Culture Rajasthan &
Gujarat
99 Community Helpdesk Project to link communities to Govt. Safety nets and schemes
IEC & Days of National Importance & Relief
100 Education Project (Improving the learning outcomes of students in 20 govt schools in Rajasthan and 33 schools in Gujarat)Children Wellbeing & Education

271-502

Amount Spent*Cumulative Amount Spent,Name of DistrictAmount Outlay*Direct Overheads

Spend till Direct or reporting implementing period agency

Barmer and Jalore

7.58

1.06

-1.06 Waterlife,

Ultrathon ElectricsBarmer

0.52

0.65

-0.65 Society to Uplift

Rural Economy (SURE)

East Godavari

0.27

0.41

-0.41 District Health

DepartmentEast Godavari

2.00

-2.00 District

Administration, East GodavariBarmer and Jalore

-0.22

-0.22 Yuva

UnstoppableBarmer and Jaipur

0.30

0.50

-0.50 GT healthcare

Trust and 67th AIP Wrestling Cluster 2018

Barmer

-0.16

-0.16 BNKVS Group of

Theatre SocietyAssam

-0.02

-0.02 Govt. of AssamBarmer

-0.04

-0.04 Sun Shakti

Solar Systems and Ultrathon Electric

0.25

0.32

-0.32 Paralympic

Committee of India

GujaratAhmedabad

-0.12

-0.12 Gujarat CSR

AuthorityRajasthanBarmer and Ahmedabad

1.88

2.88

-2.88 Bodh Shiksha

Samiti and Yuva Unstoppable

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Vedanta Limited published this content on 08 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 September 2020 10:34:05 UTC

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