(a) Gujarat industrial Development Corporation ('GIDC') is constructing a common desalination plant (the 'Plant') at Dahej Industrial Area in Gujarat through a SPV, having total estimated cost of ' 1,140 Crore. The Company particpation is 10% of total MLD. The Company has paid an advance of ' 91 Crore to GIDC (representing 80% of our share out of total planned cost). Pending finalisation of the structure of the SPV, this amount has been recorded under Capital Advance.

(b) Prepaid Expenses - current include Nil (as at 31/03/2022'24 Crore) towards excess CSR spent carried forward to subsequent years, Refer Note 58(a) for further details.

(c) Prepaid Expenses - current includes ' 50 Crore (as at 31/03/2022 Nil) towards surplus Plan Assets of Gratuity Fund recognised, Refer Note 26A (I)(a)(iv) for further details.

(d) Mainly includes unutilised Indirect tax credits and claims receivables from Indirect Tax Authorities.

(e) Includes ' 192 Crore (Garepalma mines at Chattisgarh ' 74 Crore and Kathautia mines in Jharkhand ' 118 Crore) [as at 31/03/2022'192 Crore (Garepalma mines ' 74 Crore and Kathautia mines ' 118 Crore)] towards appropriation of Performance Bank Guarantee by Nominated Authority (NA), Refer Note 45 (a) for further details.

(f) Refer Note 47 for balances with related parties.

(a) The Company has applied fair value hedge accounting on its inventory which forms part of Work-in-Progress and Finished Goods. Fair value hedges are mainly used to hedge the exposure to change in fair value of commodity price risks. The fair value adjustment remains part of the carrying value of inventory and is taken to the statement of profit and loss when the inventory is either sold or consumed, Refer Note 11(a) and 11(h).

(b) For Inventories hypothecated against secured short-term borrowings, Refer Note 22B (a).

(c) Write downs of inventories (net of reversal) to net realizable value related to raw materials, work-in-progress and finished goods amounted to ' 625 Crore (as at 31/03/2022'586 Crore). These were recognized as expense during the year and included in 'cost of material consumed' and 'change in value of inventories of Finished goods, Work-in-Progress and Stock in Trade' in the Statement of Profit and Loss.

(d) Inventories in hand include bulk materials of Coal, Bauxite and Copper Concentrate lying at yards, mines, plants and precious metals of Gold and Silver lying at Copper smelter and refinery aggregating to ' 4,232 Crore (as at 31/03/2022 ' 4,302 Crore).

(b) The Company is in the process of disposing the above assets.

(c) During the previous year ended 31/03/2022, the Company evaluated operational performance along with present environmental norms of its Di Ammonium Phosphate (DAP) Plant and decided to decommission the same. Accordingly it recognised impairment loss amounting to ' 76 Crore. During the year ended 31/03/2023, the Company has classified these assets having carrying amount of ' 14 Crore as held for sale.

(d) In earlier years, the Company had impaired certain equipment and accessories classified as held for sale resulting carrying amount ' 2 Crore as at 31/03/2022. During the year ended 31/03/2023, the Company has written back impairment loss on determination of its realizable value (Net of cost to sales) amounting to ' 12 Crore. Portion of such equipments are disposed during the year and rest with carrying amount ' 7 Crore lying as at 31/03/2023.

(e) The fair value of the assets held for sale approximates the carrying value.

(a) Issued Equity Capital as at 31/03/2023 includes 7,397 Equity Shares (as at 31/03/2022 7,397 Equity Shares) of ' 1/- each issued on Rights basis kept in abeyance due to legal case pending.

(b) Treasury shares include :

(i) Shares held by Trident Trust which represents equity shares of ' 1/- each fully paid-up of the Company issued, pursuant to a Scheme of Arrangements approved by the Hon'ble High Courts of Mumbai and of Allahabad, vide their Orders dated 31st October, 2002, and 18th November, 2002, respectively, to the Trident Trust, created wholly for the benefit of the Company and is being managed by trustees appointed by it. The tenure of the Trust is up to January 23, 2024.

(ii) Shares held by Hindalco Employee Welfare Trust (ESOP Trust) which represents equity shares of ' 1/- each fully paid-up of the Company. The Trust buys shares of the Company from the market, for giving shares to employees pursuant to the Employees Stock Option Scheme (ESOS), 2018. Refer Note 21 (a) (viii) for further details.

(a) Brief Descriptions of items of Other Equity are given below:

(i) Share Application Money pending Allotment:

Share application money pending allotment represents amount received from employees who has exercised employee stock options for which shares are pending allotment as on balance sheet date.

(ii) Capital Reserve:

The Company has created capital reserve pursuant to past mergers and acquisitions.

(iii) Capital Redemption Reserve:

The Company has created capital redemption reserve as per the requirement of the Companies Act.

(iv) Business Reconstruction Reserve:

The Company had formulated a scheme of financial restructuring under sections 391 to 394 of the Companies Act 1956 ("the Scheme") between the Company and its equity shareholders approved by the High Court of judicature of Bombay to deal with various costs associated with its organic and inorganic growth plan. Pursuant to this, a separate reserve account titled as Business Reconstruction Reserve ("BRR") was created during the year 2008-09 by transferring balance standing to the credit of Securities Premium Account of the Company for adjustment of certain expenses as prescribed in the Scheme.

(v) Securities Premium:

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provision of the Act.

(vi) Debenture Redemption Reserve:

The Company is required to create a debenture redemption reserve out of the profits which is available for payment of dividend, for the purpose of redemption of debentures.

(vii) Employee Stock Options:

The employee stock option account is used to recognize the grant date fair value of options /RSUs issued to employees under stock option schemes.

(viii) Treasury Shares held by ESOP Trust

The Company has created a trust, namely "Hindalco Employee Welfare Trust"(ESOP Trust) for providing share-based payments to its employees (including its Subsidiaries' employees). The Company uses this Trust as a vehicle for issuing shares to employees covered under the Scheme. The Trust buys shares of the Company from the stock exchange, for issuing shares to employees after excercising under the Employees Stock Option Scheme, 2018. Shares held by Trust are treated as Treasury shares. Equity instruments that are reacquired (Treasury shares) are recognised at cost and deducted from equity. No gain or loss is recognised in Statement of Profit and Loss on purchase, sale, issue or cancellation of Equity instruments. Share options whenever exercised, would be utilised from such treasury shares, Refer Note 26B(b).

(ix) General Reserve:

The Company has created this reserve by transferring certain amount out of the profit at the time of distribution of dividend in the past.

(x) Retained Earning

Amount of retained earnings represents accumulated profit and losses of the Company as on reporting date. Such profits and losses are after adjustment of payment of dividend, transfer to any reserves as statutorily required and adjustment for realised gain/loss on derecognition of equity instruments measured at FVTOCI. Actuarial Gain/ Loss arising out of Actuarial valuation is immediately transferred to Retained Earning.

(xi) Gain/ (Loss) on equity and debt instruments accounted as FVTOCI

The Company has elected to recognize changes in the fair value of certain investments in other comprehensive income. These changes are accumulated within the FVTOCI equity investments reserve and FVTOCI debt investment reserve within equity.

(xii) Effective portion of Cash Flow Hedge:

The Company uses hedging instruments as part of its risk management policy for commodity and foreign currency risk as described in note 11. The Cash Flow hedging reserve is used to recognise the effective portion of gain or loss on designated hedging relationship, Refer Note 11 (e) and 11 (f).

(xiii) Cost of Hedging Reserve:

The Company designates the spot component of some of its derivative instruments in fair value hedge relationship and cash flow hedge relationship. The Company defers changes in the forward element of such instruments in the cost of hedging reserve. For fair value hedge forward points at inception is amortized on a straight line basis from the OCI based on the remaining life of trade. For cash flow hedge the deferred cost of hedging are included in the initial cost of the related hedged items when it is recognized or reclassified to the statement of profit and loss when the hedged item effects the statement of profit and loss. The Company designates the intrinsic value of option contracts whereas the time value of option contracts is included in the cost of hedging reserve, Refer Note 11 (e) and 11 (f).

(b) Movement of each item of other equity is presented in Statement of Changes in Equity.

(c) Shareholders of the Company approved final dividend of ' 4 per fully paid up equity shares aggregating to ' 890 Crore (net of dividend on treasury shares) for the year ended 31/03/2022 which was paid during this financial year.

(d) The Board of Directors of the Company has recommended final dividend of ' 3 per fully paid up equity share aggregating to ' 667 Crore (net of dividend on treasury shares) for the year ended 31/03/2023 which has not been recognised in the financial statement, and is subject to the approval of shareholders in annual general meeting.

(ii) During the year, the Company has issued 70,000 7.60% Redeemable Non-Convertible Debentures amounting to ' 700 crore maturing on March 18, 2024 to meet the working capital requirement. These Non-Convertible debt securities has been issued to comply with provisions of SEBI Circular No. SEBI/HO/DDHS/CIR/P/2018/144 dated November 26, 2018 related to listed large corporate. As of March 31, 2023, the entire proceeds from issue of non-convertible debentures have been utilized for the purpose mentioned in the Debenture Trust Deed.

(i) All the secured Debentures were secured by movable items of Property, Plant and Equipment, both present and future (except movable assets of Mahan Aluminium plant, Aditya Aluminium plant, Kalwa plant, Current Assets of the Company) and certain immovable properties of the Company: Refer Note 2A.

(i) 100 basis points (bps) is equal to 1%

(ii) Repo rate is the rate at which RBI lends funds to commercial banks.

(iii) Marginal Cost of funds based Lending Rate (MCLR) is a tenor-linked internal benchmark rate of respective bank

(I) The term loans from banks of ' 2,858 Crore (gross) (31/03/2022: ' 2,934 Crore) are secured by a first ranking charge/ mortgage/ security interest in respect of all the movable and immovable items of Property, Plant and Equipment of Mahan Aluminium plant, both present and future, carrying value ' 10,861 Crore (as at 31/03/2022'11,238 Crore), Refer Note 2A. Term loan amounting to ' 2,858 Crore (gross) (31/03/2022: ' 2,934 Crore) is to be repaid in 17 quarterly instalments commencing from June 2026. ICICI Bank loan of ' 76 Crore has been prepaid in FY 2023.

(II) The term loan of ' 6,299 Crore (gross) (31/03/2022: ' 6,299 Crore) is secured by a first ranking charge/ mortgage/security interest in respect of all the movable and immovable items of Property, Plant and Equipment of Aditya Aluminium plant both present and future, carrying value of ' 11,320 Crore (as at 31/03/2022'11,693 Crore), Refer Note 2A. Term loan amounting to ' 6,299 Crore (gross) (31/03/2022: ' 6,299 Crore) is to be repaid in 26 quarterly instalments commencing from 01/06/2024.

(III) The term loan of ' 2,500 Crore (gross) is secured by a first ranking charge/ mortgage/security interest in respect of all the movable and immovable items of Property, Plant and Equipment of Mahan Aluminium plant both present and future, carrying value ' 10,861 Crore (as at 31/03/2022'11,238 Crore), Refer Note 2A.Term loan amounting to ' 2,500 Crore (gross) is to be repaid in 34 quarterly instalments commencing from October 2023.

(a) Working Capital Loan for Aluminium business, granted under the Consortium Lending Arrangement, are secured by a first pari-passu charge on entire stocks of raw materials, work-in-process, finished goods, consumable stores and spares and also book debts pertaining to the Company's Aluminium business, both present and future. Working Capital Loan for the Copper business is secured by a first pari passu charge on stocks of raw materials, work-in-process, finished goods and consumable stores and spares and also book debts and other movable assets of Copper business, both present and future, Refer Note 15 (b) and 16 (b).

(b) Foreign currency loans from Indian Banks and Offshore branch of Foreign banks are mainly in nature of Buyers credit which has been availed for Copper business to meet its working capital requirement mostly to settle import payments of copper concentrate and certain other raw materials. Refer Note 11(c) on non-derivative financial instruments used as hedging instruments.

(b) Brief Description of Provisions

(i) Assets Retirement Obligations

Asset Retirement Obligation (ARO) is a Legal or constructive obligation associated with the ash ponds, ash pipeline and coal transportation system at captive power plants, red mud ponds at refineries and mining area where these Lands need to be restored back to usable condition after closing of activities. This is a statutory requirement in which the timing or method of settlement may be conditional on one or multiple future events, the occurrence of which may not be within

the control of the entity. The outflow of economic resources is expected over a period until FY 47. The same has been appropriately discounted.

(ii) Environmental Liability

Environmental Liability associated with Wild Life Conservation Plan (WLCP) and disposal of hazardous material generated during the course of manufacturing or mining operation e.g. disposal of spent pot lining, Gypsum, Slag, Ash etc. This disposal generally takes place as per the guidelines set by various regulatory authorities of States and Central Government. The outflow of economic resources is generally expected over a period until FY 31.

(iii) Enterprise Social Commitment

Enterprise Social Commitment is the amount to be spent on social and economic development of the surrounding area where new project is being setup. This is generally defined as a certain percentage of the total cost of the project. The outflow of economic resources is expected expected over a period until FY 56. This has been appropriately discounted wherever necessary.

(iv) Legal Cases

There are few Legal cases against which provision has been made since these events are probable to happen i.e. more likely than not but timing of occurrence of such events is uncertain as it depends on when the matter will be settled at the highest Court of Law.

(v) Renewable Power Obligation (RPO)

Some of our units situated in various states like Odisha, Madhya Pradesh , Maharashtra ,Gujarat, Jharkhand etc. who gets power from Captive power plants or procure power from open source, are obligated to purchase certain portion of their power consumption from Renewable Energy sources both solar and non-solar. This gives rise to Renewable Power Obligation (RPO). In case the obligated units fail to procure power from such renewable sources, they may satisfy the obligation by purchasing Renewable Energy Certificates from authorised exchanges as an alternative.

(vi) Miscellaneous Provision

Includes Statutory provisions related to Indirect Taxes, Coal Cess etc.

(c) During 2017-18, while purchasing Non-Solar Renewable Energy Certificates (REC) to meet our obligation, the Company had to pay ' 500 per REC aggregating to ' 134 Crore as deposit to the REC Exchange in an Escrow account pursuant the directives from the Supreme Court of India. Provision for RPO as at 31/03/2022 was net of these REC deposits under escrow amount. During the current year, the REC Exchange has returned this amount against the bank guarantee provided by the Company. Accordingly, the provision has been adjusted for the same.

(d) Pursuant to the notification dated 31/12/2021 issued by Ministry of Environment, Forest and Climate Change (MoEFCC), the Company recognised provision of ' 107 Crore for expected cost of disposal/stabilisation of legacy ash lying in ash dykes/ponds as at 31/03/2022. The estimate was based on the plan for disposal and/ or stabilisation of ash dykes/ponds considering feasibility of extraction of ash from ash dykes/ponds.

Subsequently, the MoEFCC, vide notification dated 30/12/2022 amended the said notification whereby, any new or operational thermal power plant may be permitted to designate its ash dykes/ponds as operational ash dyke/pond. The Central Pollution Control Board (CPCB) in consultation with the Central Electricity Authority (CEA) was directed to issue guidelines, on or before 31/03/2023, relating to technical specifications of operational as well as stabilised and reclaimed ash dykes/ ponds, procedure for annual certification of such ash dykes/ponds or on various aspects like safety, mode of disposal etc.

Considering that such guidelines are yet to be notified, the Company continues to recognise the balance provision amounting to ' 91 Crore as at 31/03/2023 towards expected cost of disposal/stabilisation under provision for Environmental Liability.

A. Post-Employment Benefits

The Company provides various benefit plans to its employees. Some of them are defined benefit in nature while some are contributory.

I. Defined Benefit Plans:

Major Post retiral defined benefit plans of the Company include Gratuity, Post retirement medical benefit and Provident Fund (to the extent of Company's obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on an annual basis by Central Provident Fund Organisation of Goverment of India). The Company does Actuarial valuation for its identified defined benefit plans.

Methodology for actuarial valuation of Defined Benefit Obligations:

The Projected Unit Credit (PUC) actuarial method has been used to assess the plan's liabilities, including those related to death-in-service and incapacity benefits.

Under PUC method a projected accrued benefit is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members of the plan. The projected accrued benefit is based on the plan's accrual formula and upon service as of the beginning or end of the year, but using a member's final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits for active members.

Defined benefit plans expose the Company to actuarial risks such as: Interest Rate Risk, Salary Risk and Demographic Risk.

(i) Interest Rate Risk: While calculating the defined benefit obligation a discount rate based on government bonds yields of matching tenure is used to arrive at the present value of future obligations. If the bond yield falls, the defined benefit obligation will tend to increase and plan assets will decrease.

(ii) Salary risk: Higher than expected increases in salary will increase the defined benefit obligation.

(iii) Demographic risk: This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligations is not straight forward and depends on the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

(xiii) Expected Contributions to post employment benefit plan of Gratuity for the year ending 31st March, 2024 are nil.

(xiv) The Company has not recognised the surplus in its plan assets of gratuity fund since no future economic benefits are expected in the form of reduction in future contributions to the gratuity plan or refund from the gratuity plan.

(b) Post Retirement Medical Benefit

This is a defined benefit plan where the Company provides post retirement medical benefit to its certain retired employees. The scheme involves reimbursement of expenses towards medical treatment of self and dependents. The amount charged to the Statement Profit and Loss during the year is ' 0.33 Crore (year ended 31/03/2022'0.32 Crore) and amount of actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is ' (2) Crore (year ended 31/03/2022 ' (4) Crore). The obligation with respect to said scheme as at 31/03/2023'4 Crore ( year ended 31/03/2022'5 Crore) .

(c) Junior and Senior Pension Plan

Junior and Senior Pension Plan provided to certain employees is in the nature of defined benefit plan which provides an annuity in the form of pension amount at retirement.

(d) Other Pension Plan

It is a pension benefit provided to erstwhile Managing Director. The amount charged to statement of Profit and Loss during the year is ' 3 Crore (year ended 31/03/2022'3 Crore). Amount of actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is ' (2) Crore (year ended 31/03/2022'0 Crore). The obligation with respect to these schemes as at 31/03/2023'43 Crore ( year ended 31/03/2022'46 Crore).

(e) Provident Fund (Managed by Trust)

The Company's contribution towards Provident Fund managed by approved trusts, which are substantially a defined benefit plan, is debited to the Statement of Profit and Loss. The Company has an obligation to fund any shortfall on the yield of the trust's investments over the administered interest rates on an annual basis by Central Provident Fund Organisation

of Government of India. The amount debited to Statement of Profit and Loss during the year was ' 75 Crore (year ended 31/03/2022'68 Crore). Based on actuarial valuation, the Company has recognised obligation of Nil as at 31/03/2023 (year ended 31/03/2022 Nil ) towards shortfall on the yield of the trust's investments over the administered interest rates. Amount of actuarial (gain)/ Loss recognised in Other Comprehensive Income during the year is ' (0) Crore (year ended 31/03/2022 ' (5) Crore).

II. Defined Contribution Plans

The Company has certain defined contribution plans such as provident funds (not managed by Trust), superannuation fund and family pension fund for the benefit of the employees. The Contributions are made to registered funds/ organisation administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

(a) Pension

It is a contributory benefit plan where the Company contributes a certain percentage of salary for all eligible employees in the managerial cadre towards Superannuation Funds with option to put certain portion in National Pension Scheme (NPS) and/or in funds managed by Birla Sunlife Insurance Company to be converted to annuity of Life Insurance Corporation of India at retirement. The amount charged to statement of Profit and Loss during the year is ' 17 Crore (year ended 31/03/2022 ' 16 Crore). Amount of actuarial (gain)/ loss recognised in Other Comprehensive Income during the year is ' 0 Crore (year ended 31/03/2022'0 Crore).

(b) Provident Fund (Other than Trust)

In respect of certain employees, the Company's contribution towards Provident Fund as specified under the law is paid to the Regional Provident Fund Commissioner and is debited to the Statement of Profit and Loss. The Company also contributes to Coal Mines Provident Fund (CMPF) in respect of employees working in coal mines. The amount debited to Statement of Profit and Loss during the year is ' 30 Crore (year ended 31/03/2022'32 Crore).

B. Other Employee Benefit plans

(a) Leave Obligation

The leave obligation cover the Company's liability for earned and sick leave. The entire amount of the provision of ' 271 Crore (year ended 31/03/2022'261 Crore) is presented as current, since the Company does not have an unconditional right to defer settlement for these obligations. Expected amount towards settlement of Leave for the next 12 months are ' 44 Crore (31/03/2022'41 Crore) .

(b) Employee Share-based Payments

Refer Note 1B (W) for accounting policy on Employee Share-based Payments

The Company has formulated employee share-based payment schemes with the objective to attract and retain talent and align the interest of employees with the Company as well as to motivate them to contribute to its growth and profitability. The Company views employee stock options as instruments that would enable the employees to share the value they create for the Company in the years to come. At present, the following employee share-based payment schemes are in operation, details of which are given below:

(i) Employee Stock Option Scheme 2006 ("ESOS 2006”):

The shareholders of the Company has approved on 23/01/2007 an Employee Stock Option Scheme 2006 ("ESOS 2006"), under which the Company may grant up to 3,475,000 stock options to its permanent employees in the management cadre, whether working in India or out of India, including Managing and the Whole Time Directors of the Company, in one or more tranches. The ESOS 2006 is administrated by the Nomination and Remuneration Committee of the Board of Directors of the Company ("the Committee"). Each stock option, when exercised, would be converted into one fully paid-up equity share of ' 1/- each of the Company. The stock options will vest in 4 equal annual instalments after completion of one year of service from the date of grant. The exercise price shall be average price of the equity shares of the Company in the immediate preceding seven day period on the date prior to the date on which the ESOS compensation committee finalises the specific numbers of Options to be granted to the employees discounted by such percentage not exceeding 30 % (thirty percent) to be determined by ESOS Compensation Committee in the best interest of the various stake holders in the prevailing market conditions. The maximum period of exercise is 5 years from the date of vesting and these stock options do not carry rights to dividends or voting rights till the date of exercise. Further, forfeited/ expired stock options are also available for grant. Further, on 23/09/2011 the ESOS 2006 has been partially modified and by which the Company may grant 6,475,000 stock options to its eligible employees.

Under the ESOS 2006, till 31/03/2023 the Committee has granted 4,328,159 stock options (31/03/2022: 4,328,159 stock options) to its eligible employees out of which 1,819,941 stock options (31/03/2022: 1,819,941 stock options) has been forfeited/ expired and are available for grant as per term of the Scheme.

(ii) Employee Stock Option Scheme 2013 C'ESOS 2013”):

The shareholders of the Company has approved on 10/09/2013 an Employee Stock Option Scheme 2013 ("ESOS 2013"), under which the Company may grant up to 5,462,000 Options (comprising of Stock Options and/ or Restricted Stock Units (RSU)) to the permanent employees in the management cadre and Managing and Whole time Directors of the Company and its subsidiary companies in India and abroad, in one or more tranches. The ESOS 2013 is administered by the Nomination and Remuneration Committee of the Board of Directors of the Company ("the Committee"). The stock options exercise price would be determined by the Committee, whereas the RSUs exercise price shall be the face value of the equity shares of the Company as at the date of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and be allotted one fully paid-up equity share of ' 1/- each of the Company upon payment of exercise price during exercise period. The stock options will vest in 4 equal annual instalments after completion of one year of the services from the date of grant, whereas RSU will vest upon completion of three years of services from the date of grant. The maximum period of exercise is 5 years from the date of vesting and these stock option/ RSU do not carry rights to dividends or voting rights till the date of exercise. Further, forfeited/ expired stock options and RSUs are also available for grant.

In terms of ESOS 2013, till 31/03/2023 the Committee has granted 2,250,754 stock options and 2,252,254 RSUs (31/03/2022: 2,250,754 stock options and 2,252,254 RSUs) to the eligible employees of the Company and some of its subsidiary companies. Further, 301,381 stock options and 213,095 RSUs (31/03/2022: 301,381 stock options and 213,095 RSUs) has been forfeited/ expired and are available for grant as per term of the Scheme.

Committee") and the Hindalco Employees Welfare Trust ("Trust"). The Stock options exercise price would be determined by the Committee whereas the RSU exercise price shall be the face value of the equity shares of the Company as at the date of grant of RSUs. Each stock option and each RSU entitles the holders to apply for and be allotted one fully paid-up equity share of ' 1/- each of the Company upon payment of exercise price during the exercise period. The Options and RSUs Granted under the Scheme 2018 shall vest, subject to compliance with the minimum vesting period of one year, within a period of four years for Options and of three years for RSUs from the Grant Date, in the manner set out in the respective vesting letters to be issued by the Company to the Grantees from time to time. The maximum period of exercise is 5 years from the date of vesting and these stock options/RSUs do not carry rights to dividends or voting rights till the date of exercise. Further, forfeited/expired stock options and RSUs are also available for grant. The options shall lapse in case of performance linked vesting conditions are not met.

Under ESOS 2013, the range of exercise prices for stock options outstanding as at 31/03/2023 was ' 119.45 to ' 167.15 (31/03/2022: ' 119.45 to ' 167.15) whereas exercise price in case of RSUs was ' 1.00 (31/03/2022: ' 1.00). The weighted average remaining contractual life for the stock options and RSUs outstanding as at 31/03/2023 was 1.72 years and 1.72 years, respectively (31/03/2022: 1.09 years and 2.73 years, respectively).

The weighted average share price at the date of exercise of ESOS 2013 was ' 392.76 per share (31/03/2022'460.52 per share).

(iii) Employee Stock Option Scheme 2018 ("ESOS 2018”):

The shareholders of the Company has approved on 21/09/2018 an Employee Stock Option Scheme 2018 ("ESOS 2018"), formulated by the Company, under which the Company may grant not more than 13,957,302 [Stock Options and Restricted Stock Units('RSU')] to the permanent employees of the Company in management cadre including Managing and the Wholetime Director of the Company and its subsidiary companies in India and abroad, in one or more tranches. The ESOS 2018 is administered by the Nomination and Remuneration Committee of the Board of Directors of the Company ("the

Under ESOS 2018, the range of exercise prices for stock options outstanding as at 31/03/2023 was ' 159.30 to ' 453.95 (31/03/2022 was ' 159.30 to ' 453.95) whereas exercise price in case of RSUs was ' 1 (31/03/2022: ' 1). The weighted average remaining contractual life for the stock options and RSUs outstanding as at 31/03/2023 was 5.02 years and 5.90 years, respectively (31/03/2022 was 5.29 years and 5.50 years respectively).

The weighted average share price at the date of exercise of ESOS 2018 was ' 416.04 per share (31/03/2022 was ' 509.37 per share).

The fair values at grant date of stock options granted during the year ended 31/03/2023 was ' 159.32 to ' 215.70 (31/03/2022 was ' 176.04 to ' 220.36) and fair values in case of RSUs was ' 350.00 to ' 413.12 (31/03/2022 was ' ' 419.15 to ' 435.62), respectively. The fair valuation has been carried out by an independent valuer by applying Black and Scholes Model. The inputs to the model include the exercise price, the term of option, the share price at grant date and the expected volatility, expected dividends and the risk free rate of interest for terms of options.

(iv) Stock Appreciation Rights CSAR 2018'):

The Company till 31/03/2023, has granted 196,064 Option SAR and 57,150 RSU SAR (31/03/2022: 156,694 Option SAR and 50,665 RSU SAR) under the Share Appreciation Rights Scheme 2018 ("SAR 2018") to its eligible employees. The Options and RSU SAR Granted shall vest, in the manner set out in the respective vesting letters to be issued by the Company to the Grantees from time to time.The SAR 2018 is administered by the Nomination and Remuneration Committee of the Board of Directors of the Company ("the Committee"). The SAR 2018 have performance linked vesting conditions which are decided by the committee and are cash settled. The options shall lapse in case of performance linked vesting conditions are not met.

The weighted average remaining contractual life for the Option SAR as at 31/03/2023 is 1.70 to 5.31 years (31/03/2022: 2.70 to 5.35 years) and RSU SAR as at 31/03/2023 is 1.70 to 5.31 years (31/03/2022: 2.70 to 5.35 years).

The total intrinsic value at the end of the year of the vested Option SAR and RSU SAR is ' 2.86 Crore (31/03/2022'2.42 Crore). The liability for outstanding option is of ' 3 Crore (31/03/2022: ' 4 Crore).

Effect of Employee Share-Based Payment transactions on Profit or Loss for the period and on financial position:

For the year ended 31/03/2023, the Company recognised total expenses of ' 47 Crore (31/03/2022'40 Crore) related to equity-settled and cash-settled share based transactions. During the year ended 31/03/2023, the Company has directly allotted 21,861 (31/03/2022: 488,477) fully paid-up equity shares of ' 1/- each of the Company on exercise of equity settled options for which the Company has realised ' 0.28 Crore (31/03/2022: ' 6 Crore) as exercise prices. The Company has also allotted 801,930 (31/03/2022: 878,968) fully paid-up equity share of ' 1/- each of the Company through its ESOP trust on exercise of equity settled options for which the Company has realised ' 6 Crore (31/03/2022: ' 15 Crore) as exercise prices.

The Company has received ' 0.66 Crore (31/03/2022'0.70 Crore) from UtkaL Alumina International Limited and HindaLco - Almex Aerospace Limited (Subsidiaries) towards the grant of 112,836 Stock Options and 77,790 RSUs (31/03/2022: 91,611 Stock Options and 49,061 RSUs) under ESOS 2018 which is netted off from Employee Share-Based Payments Expenses.

(a) Supplier's credit represents the extended interest bearing credit offered by the supplier which is secured against Usance Letter of Credit (LC). Under this arrangement, the supplier is eligible to receive payment from negotiating bank prior to the expiry of the extended credit period. The interest for the extended credit period payable to the bank on maturity of the LC has been presented under Finance Cost.

(b) Supplier's credit also includes amounts payable towards Accounts Receivable Purchase Scheme ("ARPS") entered into with the suppliers. Under this arrangement, the supplier is eligible to receive payment prior to the expiry of extended credit period by assigning such invoices to a third-party purchaser bank based on security in the form of an undertaking issued by the Company to the bank. Further, the supplier charges interest to the Company for the extended credit period which has been presented under Finance Cost.

(a) Sales of Copper products and precious metals are accounted for provisionally, pending finalization of price and quantity. Variations are accounted for in the period of settlement. Final price receivable on sale of above products for which provisional price was not finalized are realigned at year end forward LME/LMBA rate and is being presented as part of other operating revenue. Revenue from subsequent variation in price movement is Gain of ' 12 Crore (year ended 31/03/2022, loss of ' 24 Crore).

(b) Includes nutrient based subsidy of Phosphorus (P) & Potassium (K) arising from sale of Di-Ammonium phosphate (DAP) ' 1,292 Crore (year ended 31/03/2022'441 Crore).

(c) Sale of services predominantly include freight and insurance on exports which are identified as separate performance obligation under Ind AS 115.

(d) Includes Government Grant in the nature of sales related export Incentives and other benefits of ' 400 Crore (year ended 31/03/2022'408 Crore).

Stock options granted to the employees under various ESOP schemes are considered to be potential equity shares. They have been included in the determination of diluted earnings per share to the extent they are dilutive. 833,136 shares (year ended 31/03/2022 538,978 Shares) options granted under Employee Stock option scheme but were not included in the calculation of diluted earnings per share because they are antidilutive for the period. Options can potentially dilute basic earnings per share in the future depending on future share price of the Company.The stock options have not been included in the determination of basic earnings per share. For details relating to stock options, Refer Note 26.

45 (a) Gare Palma IV/4 (GP-4), Gare Palma IV/5 (GP-5) and Kathautia coal mines were acquired by the Company through auction conducted by the Nominated Authority (NA constituted under the Ministry of Coal, Government of India. The Company was required to achieve certain efficiency parameters and reach their Peak Rated Capacity (PRC) during FY 2015-16. Performance security in the form of Performance Bank Guarantees (PBG) of ' 318 Crore (for GP-4), ' 369 Crore (for GP-5) and ' 267 Crore (for Kathautia) were provided by the Company to NA in this regard.

Due to the various delays on the part of Government Authorities, PRC was achieved by the Company for GP-4 and GP-5 during FY 2016-17 and for Kathautia during FY 2017-18. Having satisfied itself about achievement of efficiency parameters/ PRC, NA returned the PBG in respect of GP-4 on June 19, 2017. However, in a volte face action, vide a letter dated 25th April, 2018, NA imposed a penalty equal to 20% of PBG amounting to ' 64 Crore for GP-4, ' 74 Crore for GP-5 and ' 118 Crore for Kathautia (Refer Note - 14(e)). As the PBG for GP-5 is still with NA, it also appropriated an amount equal to the penalty from the PBG of the GP-5 mines. For Kathautia Coal Mine only appropriated amount of ' 118 Crore is with NA. In terms of agreement, the Company has not renewed the PBG for remaining amount.

The above actions were contested by the Company. The Hon'ble Chhattisgarh High Court at Bilaspur has already given its judgment in favour of the Company in the matter related to GP-5. As per the judgment, Hon'ble High Court has asked NA to refund the amount appropriated by them and return the PBG to the Company. The NA has filed an appeal before the Hon'ble Supreme Court. The Company's appeal to quash the demand raised by NA in case of GP-4 and Kathautia is yet to be decided and is pending before the Mines Tribunal at Bilaspur and Ranchi respectively.

(b) For the period from 1st July 2021 to 25th November 2021, there was lack of clarity with regard to the deduction of tax at source on procurement of coal as there were concurrent provision for collection as well as deduction of tax at source. There was an existing provision for tax collection at source by the seller u/s 206C(1) whereas the newly introduced section 194Q provided for deduction of tax at source by the buyer. At the same time, subsection 5 of section 194Q specifically excluded the operation of section 194Q in cases where tax collection at source was already applicable. It

was, therefore, evident that there was no need for deduction of tax at source by the buyer (in the present case, the Company). However, on 25th November 2021, CBDT came out with a circular stating that tax deduction was applicable in cases where buyer is using coal for his own consumption, tax need to be deducted at source by the buyer. Accordingly, the Company started deducting and depositing tax on such purchases with effect from 1st November 2021. However, the tax for the period from 1st July 2021 to 31st October 2021 was deposited by the Company in October 2022 along with applicable interest.

46. Segment Reporting

The Company has presented segment information in its Consolidated Financial Statements, which are part of the same annual report. Accordingly, in terms of provisions of Accounting Standard on Segment Reporting (Ind AS 108), no disclosure related to the segment are presented in the Standalone Financial Statements.

to our responsibility for compliance with environmental, health and safety laws and regulations. The estimated costs in respect of such reported liabilities are not offset by amounts related to insurance or indemnification arrangements unless otherwise noted.

48. Contingent Liabilities and Commitments

Refer Note 1B (L) for accounting policy on Provisions and contingencies A. Contingent Liabilities

The Company is party to, and may in the future be involved in, or subject to, disputes, claims and proceedings arising in the ordinary course of our business, including some we assert against others, such as environmental, health and safety, product liability, employee, tax, personal injury and other matters. The Company has established a liability with respect to contingencies for which a loss is probable and estimable. While the ultimate resolution of liability and costs related to these matters cannot be determined with certainty, the Management does not believe any of these pending actions, individually or in the aggregate, will materially impact our operations or materially affect our financial condition or Liquidity. The Company's estimates involve significant judgment, and therefore, the estimate will change from time to time and actual losses may differ from the current estimate.

Management reviews the status of, and estimated liability related to, pending claims and civil actions on a quarterly basis. The evaluation model includes all asserted and unasserted claims that can be reasonably identified including claims relating

49. Capital Management

The Company's objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders, but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Apart from internal accrual, sourcing of capital is done through judicious combination of equity and borrowing, both short term and Long term. Total debt (total borrowings Lease Liabilities) to equity ratio is used to monitor capital. No changes were made to the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

As at March 31, 2023 and March 31, 2022, the Company was in compliance with all of its debt covenants for borrowings. The Company is required to maintain the Debt Service Coverage Ratio of 1.25 times. For the the year ended 31/03/2023 the Debt Service Coverage Ratio of the Company is 1.08 times. The Company has repaid its NCDs amounting to ' 6,000 Crore in FY 23 . Without considering this repayment, the Company's Debt Service Coverage Ratio will be 5.43 times. This does not have any impact on the Financial Statements of the Company.

Level 1 Hierarchy includes financial instruments valued using quoted market prices. Listed equity instruments and traded debt instruments which are traded in the stock exchanges are valued using the closing price at the reporting date. Mutual funds are valued using the closing NAV.

Level 2 Hierarchy includes financial instruments that are not traded in active market. This includes over the counter (OTC) derivatives, close ended mutual funds and debt instruments including quoted valued using observable market data such as yield etc. of similar instruments traded in active market. All derivatives are reported at discounted values hence are included in level 2. Borrowings have been fair valued using credit adjusted interest rate prevailing on the reporting date. Trade Receivables and Payables that are realigned based on forward LME/LBMA price movements have been included in Level 2 hierarchy.

Level 3 If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments including quoted which are not actively traded valued using assumptions from market participants.

Sensitivity with decrease in yield, Weighted average cost of capital and Price Book Multiplier by 0.5% and 10% will have equal and opposite impact in financial statement.

(v) Valuation Process

Some of the Company's assets and liabilities are measured at fair value for financial reporting purposes. The Management of the Company has set up a team in the finance department which performs the valuation of financial assets and liabilities.

In estimating the fair value of an asset or a liability, the Company uses market-observable data to the extent it is available. Where Level 1 inputs are not available, the Company engages third party qualified valuers to perform the valuation. The team works closely with the qualified external valuers to establish the appropriate valuation techniques and inputs to the model. The team reports findings to the Management of the Company to explain the cause of fluctuations in the fair value of the assets and liabilities.

(vi) Valuation techniques used for valuation of instruments categorised as level 3

For valuation of investments in equity shares and associates which are unquoted, peer comparison has been performed wherever available. Valuation has been primarily done by considering the net worth of the Company and price to book multiple to arrive at the fair value. In cases where income approach was feasible valuation has been arrived using the earnings capitalisation method or discounted cash flow method. For inputs that are not observable for these instruments, certain assumptions are made based on available information. The most significant of these assumptions are the discount rate and credit spreads used in the valuation process.

For valuation of investments in debt securities categorised as level 3, market polls which represent indicative yields are used as assumptions by market participants when pricing the asset.

There were no significant inter-relationships between unobservable inputs that materially affect fair values.

52. Financial Risk Management

Refer Note 1B (Q) for accounting policy on Financial Instruments

The Company's activities exposes it to various risks such as market risk, liquidity risk and credit risk. This section explains the risks, which the Company is exposed to and how it manages those risks.

(a) Market Risk(i) Market Risk : Commodity Price Risk

Hindalco's India Operations consist of two businesses - Copper Business and Aluminium Business. The Copper Business works under a "Custom Smelting" model wherein the focus is to improve the processing margin. The timing mis-match risk between the input and output price, which is linked to the same international pricing benchmark, is eliminated through use of derivatives. This off-set hedge model (through use of derivatives) is used to manage the timing mis-match risk for both Commodity (Copper and Precious Metals) and Currency Risk (primarily, USD/INR). The Copper Business also has a portion of View Based exposure for both Commodity and Currency, beyond the above timing mis-match risk. Lower Copper Prices, Stronger USD/INR exchange rate and Higher "Other Input" Prices (eg Coal, furnace oil, natural gas etc) are the major price risks that adversely impact the business. Here, the Company may use derivative instruments or non-derivative instrument, wherever available, to manage these pricing risks. A variety of factors, including the risk appetite of the business and price view, are considered while taking Hedging Decisions. Such View based hedges are usually done for the next 1-12 quarters.

The Aluminium Business is a vertically integrated business model wherein the input and output pricing risks are independent of each other, i.e. - are on different pricing benchmarks, if any. Here, the Company may use derivative instruments, wherever available, to manage its pricing risks for both input and output products. Lower Aluminium Prices, weaker USD/ INR exchange rate and Higher Input Prices (e.g. Alumina, furnace oil, coal, coal tar pitch) are the major price risks that adversely impact the Business. Hedging decisions are based on a variety of factors, including risk appetite of the business and price View. Such Hedge decisions are usually done for the next 1-12 quarters.

Embedded Derivatives

Copper concentrate is purchased on future pricing model based on month's average LME (in case of copper) / LBMA (in case of gold and silver). Since, the value of the concentrate changes with response to change in commodity pricing indices, embedded derivatives (ED) is identified and segregated in the contract. The ED so segregated, is treated like commodity derivative and qualify for hedge accounting. These derivatives are put into a Fair Value hedge relationship with respect to inventory.

(iii) Market Risk : Foreign Currency Risk

Exchange rate movements, particularly the United States Dollar (USD) and Euro (EUR) against Indian Rupee (INR), have an impact on our operating results. In addition to the foreign exchange inflow from exports, the commodity prices in the domestic market are derived based on the landed cost of imports in India where LME prices and USD/INR exchange rate are the main factors. In case of conversion business, the objective is to match the exchange rate of outflows and related inflows through derivative financial instruments. With respect to Aluminium business where costs are predominantly in INR, the strengthening of INR against USD adversely affects the profitability of the business and benefits when INR depreciates against USD. The Company enters into various foreign exchange contracts to protect profitability. The Company also enters into various foreign exchange contracts to mitigate the risk arising out of foreign currency exchange rate movement in foreign currency contracts executed with foreign suppliers to procure capital items for its project activities.

During the year ended, the Company's foreign currency exposure arising from exports and import transactions resulted in the FOB value of exports amounting to ' 17,319 Crore (31/03/2022'21,416 Crore) and the CIF value of imports amounting to ' 37,993 Crore (31/03/2022'36,087 Crore).

Decrease in prices by 10% will have equal and opposite impact in financial statements.

Sensitivity analysis has been computed by stress testing the market price of the underlying currency index on the outstanding derivative position and unhedged exposure as on the reporting date by assuming all other factors constant.

(vi) Market Risk: Equity Securities Price Risk

The Company's exposure to equity securities price risk arises from movement in market price of related securities classified either as FVTOCI or FVTPL. The Company manages the price risk through diversified portfolio.

The above disclosure is after adjusting foreign currency assets of ' 255 Crores (March 31, 2022'489 Crores) and foreign currency liabilities ' 988 (March 31, 2022'1,436 Crores) against derivative contracts (forward, future and option contracts).

Assets and liabilities that are naturally hedged against future transactions are excluded for the purpose of above disclosure. As on March 31, 2023 the Company has USD, EUR and GBP foreign currency payables of ' 11,563 Crore (March 31, 2022 ' 10,110 Crore) which will be offseted by an equal amount of foreign currency receivables in the next financial year.

Decrease in prices by 10% will have equal and opposite impact in financial statements.

Sensitivity analysis has been computed by stress testing the market price of the underlying price index on the investment portfolio as on the reporting date by assuming all other factors constant.

(vii) Market Risk: Interest Rate Risk

The Company is exposed to interest rate risk on financial liabilities such as borrowings, both short-term and long-term. It maintains a balance of fixed and floating interest rate borrowings and the proportion is determined by current market interest rates, projected debt servicing capability and view on future interest rates. Such interest rate risk is actively evaluated and interest rate swap is taken whenever considered necessary.

The Company is also exposed to interest rate risk on its financial assets that include fixed deposits, bonds, debentures, commercial papers, other mutual funds and liquid investments comprising mainly mutual funds (which are part of cash and cash equivalents). Since, majority of these are generally for short durations, the Company believes it has limited interest rate risk.

Decrease in rates by 100 bps will have equal and opposite impact in financial statements. Sensitivity analysis has been computed by stress testing the interest rates applicable (i.e. USD 6M SOFR, SBI 3M MCLR, PNB 1M MCLR, Repo Rate and 3M T-bill etc.) on the amount of borrowings during the year by assuming all other factors constant.

Derivatives

The Company does have any interest rate hedges outstanding as on the reporting date, accordingly IBOR related impact on hedge accounting including discounting of other derivatives is not expected to be material.

(b) Liquidity Risk

The Company determines its Liquidity requirements in the short, medium and Long term. This is done by drawing up cash forecast for short and medium term requirements and strategic financing plans for Long term needs.

The Company manages its Liquidity risk in a manner so as to meet its normal financial obligations without any significant delay or stress. Such risk is managed through ensuring operational cash flow while at the same time maintaining adequate cash and cash equivalents position. The management has arranged for diversified funding sources and adopted a policy of managing assets with liquidity in mind and monitoring future cash flows and liquidity on a regular basis. Surplus funds not immediately required are invested in certain financial assets (including mutual funds) which provide flexibility to liquidate at short notice and are included in current investments and cash equivalents. Besides, it generally has certain undrawn credit facilities which can be accessed as and when required, which are reviewed periodically.

The Company has developed appropriate internal control systems and contingency plans for managing liquidity risk. This incorporates an assessment of expected cash flows and availability of alternative sources for additional funding, if required.

(a) Includes Principal and interest payments, short term borrowings, current portion of debt and excludes unamortised fees.

(b) Total cash outflow for leases for the year ended 31/03/2023 is ' 399 Crore (31/03/2022: ' 224 Crore), includes ROU Lease payment, Short term lease and Low value lease, refer note 22A(c) and 41(c).

(C) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligation.

Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments, favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers including outstanding receivables.

Credit risk is managed on an entity level basis. The Company has adopted a policy of dealing only with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating risk of financial loss from defaults. The Company invests only in those instruments issued by high rated banks/ institutions and government agencies. The Company assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. The Company's investments in debt instruments and certain loans are considered to have low credit risk. The credit ratings of the investments are monitored for credit deterioration.

For some trade receivables, the Company obtains security in the form of guarantees, deed of undertaking or letters of credit which can be called upon if the counterparty is in default under the terms of the agreement.

The Company periodically monitors the recoverability and credit risks of its other financials assets including security deposits and other receivables. The Company evaluates 12 months expected credit losses for all the financial assets for which credit risk has not increased. In case credit risk has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-

Of the trade receivables balance as at 31/03/2023, ' 473 Crore (as at 31/03/2022, ' 368 Crore) is due from a single customer being the Company's largest customer. There are no other customers who represent more than 10% of the total balance of trade receivables.

Financial assets at FVTPL and at FVTOCI: The Company is also exposed to credit risks in relation to financial assets that are measured at FVTPL or at FVTOCI. The maximum exposure at the end of the reporting period is the carrying amount of these assets.

54. Business Combinations

Refer Note 1B (FF) for accounting policy on Business Combinations

During the year ended 31/03/2023, the Company does not have any business acquisition transaction to report. During year ended 31/03/2022, the Company had acquired Kuppam unit of SAPA Extrusions India Private Limited.

On 01/02/2022, the Company has completed the acquisition of the Extrusion business of SAPA Extrusion India Private Limited, manufacturer of high end extrusion products, pursuant to a Business Transfer Agreement dated 17/12/2021. The acquisition increases the Group's footprint in high end extrusion products by expanding the portfolio of services provided to its customers.

Clarification for changes

(i) During the current year, the company has repaid the debentures of ' 6,000 Crore. Further, the Company has issued new debentures amounting to ' 700 Crore. Ratio improved majorly due to the same.

(ii) Decrease in this ratio is mainly on account of lower net profit available in the current year.

58. Additional Regulatory Information

(a) As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at Least 2% of its average net profit for the immediately preceding three financial years on Corporate Social Responsibility (CSR) activities. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

(i) Gross amount required to be spent by the company during the year is ' 69 Crore (Year ended 31/03/2022'24 Crore).

(ii) Amount approved by the Board to be spent during the year is ' 45 Crore (Year ended 31/03/2022 is ' 38 Crore).

(vi) The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects.

(vii) The contribution to a trust controlled by the Company (Hindalco Jan Seva Trust) in relation to CSR expenditure is ' 1 Crore (year ended 31/03/2022'1 Crore).

(viii) There is provision made with respect to a liability incurred by entering into a contractual obligation during the current year ' 1 Crore (year ended 31/03/2022 Nil).

(b) Details of loans given, investment made and guarantee given covered under section 186(4) of the Companies Act, 2013:

(i) Details of investments made have been given as part of Note '7' Investments in Subsidiary, Note '8' Investments in Associates and Joint Ventures and Note '9' Other Investments.

(c) Other additional disclosures required under Schedule III as per Companies Act 2013 are as follows:

(i) No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) Hindalco Industries Limited have not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) Hindalco Industries Limited has complied with the number of layers prescribed under the Companies Act, 2013.

(iv) There is no undisclosed income under the Income Tax Act, 1961 for the year ending 31/03/2023 and 31/03/2022 which needs to be recorded in the books of account.

(v) Hindalco Industries Limited has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vi) The borrowings obtained by the company from banks and financial institutions have been applied for the purposes for which such loans were was taken.

(vii) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(viii) Utilisation of borrowed funds and share premium.

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(ix) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(x) The Company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts except incase of quarter ended 31/03/2023 where the Company has filed provisional statement with the bank and the final statement will be submitted to the bank after finalization of audited financial statements.