Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Management Discussion FY 2020-21: KEY HIGHLIGHTS & Analysis # # 3,613 KT US$1.714 BILLION US$474 Overall shipments in Novelis Record Adjusted EBITDA in Record Yearly adjusted Novelis (up 16%) EBITDA/ton in Novelis

* Hindalco Industries Limited, the metals flagship of Aditya 61 % ALERIS 2,699 KT Birla Group, is the world’s largest Aluminium rolling and Recycled inputs in Novelis ACQUISITION Alumina production recycling company and a major copper player. Hindalco is Completed on April 14, 2020 also one of Asia’s largest producers of primary Aluminium.

1,229 KT 270 KT 235 KT Aluminium metal production Aluminium value-added products Copper rods Production (VAP) in India (excluding wire rods) Consolidated Net Debt In India, the Company’s aluminium It operates an integrated network production to EBITDA at manufacturing units comprise the of technically advanced rolling and full value chain, from bauxite mining, recycling facilities across North America, 2.59 Times alumina refining, coal mining, captive South America, Europe and Asia. At the end of the year power generation and aluminium Hindalco’s (including Novelis) global Hindalco continued to smelting to downstream value addition footprint spans 48 manufacturing units `1,31,985 CRORE (UP 12%) `18,896 CRORE (UP 22%) `5,182 CRORE (UP 38%) maintain its strong balance of Aluminium rolling, extruding and across 10 countries and 4 continents. Consolidated Revenue Consolidated EBITDA Consolidated PAT for sheet in FY 2020-21 foil making. Hindalco’s copper facility Novelis has recycling operations in in India comprises of a world-class 15 of these global operating facilities. Continuing Operations copper smelter, downstream facilities, Today Novelis recycles 74 billion cans a fertilizer plant and a captive jetty. a year, enough to circle the globe more * including Utkal, the wholly-owned subsidiary; The copper smelter is among the than 160 times. # Novelis FY 2020-21 Numbers includes Aleris Today Novelis recycles world’s largest custom smelters at a single location. Hindalco is one of In FY 2020-21, the Company delivered 74 BILLION CANS the largest suppliers of copper to the a resilient and strong performance, A year, enough to circle Indian Railways. despite macroeconomic challenges, the globe more than tough market conditions on account 160 times Novelis Inc., Hindalco’s wholly-owned of the COVID-19 pandemic and global subsidiary, is the world’s largest uncertainties. This performance was producer of aluminium beverage can mainly driven by higher volumes stock and aluminum automotive sheet, and better product mix, lower input and the largest recycler of Aluminium. costs, stability in operations and Novelis provides innovative solutions cost‑saving actions in India as well as to its customers in the beverage cans, its overseas operations. Novelis closed automobile, aerospace and high‑end its acquisition of Aleris Corporation and speciality markets (including foil is now integrating the two companies. packaging, certain transportation Novelis continued to report its best-ever products, architectural, industrial, EBITDA and EBITDA per ton and overall Building & Construction (B&C) shipments, including Aleris. Hindalco and consumer durables). continued to maintain its strong balance sheet in FY 2020-21, resulting in a consolidated Net Debt-to-EBITDA of 2.59 times at the end of the year.

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Key initiatives during the year Hindalco’s sustainable business model focussed on Global aluminium production Ex. China was flattish in CY 2020 consumption of Aluminium surpassed the production. In World Ex China, the consumption picked up since June ‘20 and On April 14, 2020, Novelis closed its acquisition of Aleris downstream product expansion in India is expected to nearly versus growth of around 1% growth a year ago; production reached Pre-COVID levels by November 2020 and December Corporation. The acquisition provides a number of strategic double its existing downstream capacity in the next 5-6 years. growth in China was ~4% YoY due to growth in Inner Mongolia 2020. Consequently, the surplus also narrowed from level of benefits, including increasing the Company’s footprint as an Hindalco, in December 2020, announced its plans to set up and Yunnan, as compared to 3% degrowth in 2019. As a result, 0.7 million in June 2020 to a deficit in November (See Table 1). Aluminium rolled products manufacturer and diversifying its a 34,000-ton extrusion plant at Silvassa. The new plant will overall global production marginally grew by 2% YoY in This reduction in surplus led by an improvement in demand product and customer portfolio, including by providing entry service the fast-growing market for extruded aluminium CY 2020, down from a degrowth of 1% in CY 2019. Given the was also reflected in the prices. In beginning of Jan ‘20, the into the aerospace market. In addition, more than $180 million products in the western and southern regions. The `730-crore sharper slowdown of global consumption by 3% as against prices were at ~$1800/Mt, and by end of March ‘20, the of run-rate synergies have been identified through traditional project in Silvassa signals a big step forward in Hindalco’s a production growth of 2%, leading to a surplus of ~2 million prices declined to ~$1500/MT. As the demand recovered, by integration cost synergies and strategic synergies created by downstream strategy as the Company moves ahead with its ton. Consequently, global inventories increased from ~10.5 end of June 20, it stabilised to a little over $1600/MT, and by enhancing and integrating operations in Asia. By the end of long-term downstream investment plan. The Company’s intent million tons in the beginning of CY 2020 to ~12.5 million tons September, with increasing economic activity, the prices rose fiscal year 2021, $79 million of run-rate cost synergies have is to build a larger value-added product portfolio over the by the end of CY 2020. (See Figure 1&2) to pre-COVID levels of ~$1800/Mt. As the markets became already been achieved. The acquisition of Aleris provides next few years. This investment indicates confidence in the more balanced, the prices improved to ~$2000/Mt by the end Novelis with further product diversification with the addition economic revival, which will grow the demand for downstream The overall markets were in surplus of 2.0 million tons in of the December 2020. Due to significant price fluctuations, of high-end Aerospace and expanded speciality capabilities. value-added products. Q1-CY 2020, and in the remainder of CY 2020, the markets the overall average for CY 2020 was $1704/MT. (See Figure 3) It insulates Hindalco-Novelis from global price volatility and were balanced. In China, since April 2020 till December 2020, sharpens focus on the downstream business. 1. Industry analysis 1.1 Aluminium Segment and Industry Review Figure 1 : Primary Aluminium Consumption Figure 2 : Primary Aluminium Production Novelis remains committed to all its organic projects Global economic activity in CY 2020 was severely hit by (in Million Tons) (in Million Tons) announced. The 200 Kt automotive finishing facility in enforcement of stringent lockdown measures as a result of Guthrie, Kentucky in the US and 100 Kt of the auto finishing the spread of the COVID-19 pandemic. Strong fiscal support 56 60 63 65 65 63 57 59 64 64 63 65 line in China, were both commissioned in the second half of of around 20% of world’s GDP coupled with vaccination FY 2020-21, bringing global automotive finishing capacity to powered normalisation prevented an economic catastrophe. 34 36 36 38 36 35 37 32 32 36 approximately 1 million tons when fully ramped up. Customer As the lockdown measures eased gradually in the second 29 31 qualification continues to ramp up at both facilities to meet half of CY 2020, economic activity started to pick up. Global strong demand for lightweight, automotive Aluminium growth is projected to contract by 3.3% in CY 2020 (vs 2.9% in sheet. The recycling, casting and rolling expansion in Brazil CY 2019, IMF Forecast). Except for China, the GDP in most 27 28 29 29 28 25 26 27 27 28 28 28 and recycling facility in Greensboro also remains on track to advanced and emerging economies is expected to contract commission in the middle of FY 2021-22. in CY 2020. Going forward, recovery will depend on the path of the pandemic, pace of roll-out of the vaccine and the CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 In March 2021, Novelis successfully placed a 3.375%, €500 extent of associated industrial activity disruptions. While the million Senior Unsecured Green bonds in Europe for eight global economy is expanding, large sectoral and regional World Ex China China World Ex China China years, due in 2029. Novelis received credit rating upgrades divergences in growth trajectory exist. The geopolitical on Novelis unsecured notes by both S&P Global Ratings and tensions and trade frictions, deteriorating fiscal positions of Moody’s Investor Services in March 2021. Hindalco’s Credit governments are key downside risks to growth. According to Rating Outlook upgraded from ‘Stable’ to ‘Positive’ while the IMF, global growth in CY 2021 is projected to rebound to Figure 3 : Global Aluminium Prices ($/MT) reaffirming the rating at “AA’ by CRISIL in April 2021. 6% on a contracted base in CY 2020.

Hindalco has been ranked as the Aluminium Industry Leader The prolonged COVID-19 crisis dampened global economic 2395 for its sustainability performance in the 2020 edition of sentiments, with most of the major economies experiencing a 2018 1969 2111 1845 1867 1792 the S&P Dow Jones Sustainability Indices (DJSI) Corporate slowdown in economic growth. This in turn affected aluminium 1661 1605 1704 Sustainability Assessment (CSA) rankings. Hindalco is the only consumption. In CY 2020, primary aluminium consumption Company from India to be recognised as an Industry Leader fell by 3% from the decline of 1% in 2019. The world, excluding this year. Industry Leaders are the top-performing companies China, de-grew by ~12% in 2020 on the back of 3% decline in each of the 61 industries represented in the DJSI. Hindalco in CY 2019, owing to weakening demand in North America, also featured in the S&P Global Gold Class category as Europe, and Japan. Among user industries, only packaging, ‘Sustainability Leaders of 2021’ in the Dow Jones Sustainability including foil stock, recorded flattish growth year-on-year in Yearbook 2021. CY 2020, whereas consumption growth declined in sectors CY 2011 CY 2017 CY 2013 CY 2012 CY 2019 CY 2015 CY 2018 CY 2016 CY 2014 like Transportation, Construction, Consumer Durables and CY 2020 Utkal’s Alumina brownfield capacity expansion, by 500 Kt, Machinery & Equipment sectors. In CY 2019, China grew by 3% is on track with mechanical completion underway with led by growth in auto, building and construction, consumer Table 1 : Global Demand & Supply Balance commercial production to begin in quarter two of FY 2021-22. durables, packaging. World Q1 CY 2020 Q2 CY 2020 Q3 CY 2020 Q4 CY 2020 CY 2020 This will further strengthen the Company’s integration and boost the availability of best-in-class alumina to its aluminium Production (MnT) 15.9 15.8 16.3 16.7 64.8 smelters in India. Consumption (MnT) 13.9 15.7 16.3 16.9 62.8 Surplus/Deficit (MnT) 2.0 0.2 0.0 -0.2 2.0 Al Price ($/MT) 1690 1497 1704 1916 1704

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The average value of premiums was also volatile. By the end of Domestic consumption is likely to decline by 8% in Refined Copper Consumption (Mt) In spite of all the challenges due to COVID disruptions and CY 2020, Spot Main Japanese Port (MJP), European Rotterdam FY 2020‑21. However, the pace of decline was much steeper other issues, the Concentrate outlook is likely to grow by 16.0 3.9% during CY 2021. This is due to some new mines being Ingot duty paid and US Midwest premium was $86/t, $129/t in the Q1 FY 2020-21 due to COVID related lockdown. As 12.7 and $12cents/lb, respectively versus $84/t, $143/t and $18 the economic activity resumed, domestic consumption saw 14.0 11.8 11.5 commissioned during the year like Kamoa‑Kakula in DRC, 10.5 Cents/lb, respectively in CY 2019. significant improvement across all sectors over the year. 12.0 Spence project in Chile. Accordingly, spot Tc/Rc is expected to 10.0 improve during the course of the CY 2021, in line with the more 8.0 balanced market expected. Table 2 : Sector Wise Domestic Consumption YoY growth % in FY 2020-21 6.0 Sector Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 E FY 2021 E 4.0 1.3 Novelis – Industry Review & Business overview Electrical -40% to -50% -10% to -20% -10% to 0% 0% to 10% -10% to -20% 2.0 Q1 of FY 2020-21 were negatively impacted by a short-term Building & construction -50% to -60% -30% to 40% -10% to 0% 0% to 10% -20% to 30% 0 reduction in demand for Aluminium rolled products as a China World Ex-china Auto -50% to -60% -20% to -30% 30% to 40% 10% to 20% -0% to -10% result of the COVID-19 pandemic and restrictions put in Industrial & Defense -10% to -20% 0% to 10% 40% to 50% 40% to 50% 15% to 25% CY 2019 CY 2020 place to combat the virus. Some industries such as automotive, Packaging -20% to -30% -10% to -20% 10% to 20% 30% to 40% -5% to 5% aerospace, and some speciality markets, including heat exchangers and transportation, experienced a sharper Consumer Durables -20% to -30% -10% to -20% 20% to 30% 30% to 40% 5% to 15% Indian Industrial Production was restricted by one of the demand decline than the more resilient beverage can India Consumption -42% -22% 18% 21% -8% world’s strictest COVID-19 lockdowns in Q1 FY 2020-21 and segment. Imports Share % 68% 51% 63% 61% 60% improved gradually thereafter. Source : Company Estimates However, demand strengthened considerably in the On a yearly basis, Domestic market demand reduced by 24% to second quarter of FY 2020-21 across most end markets and Imports continued to be a concern for domestic players. Even In the domestic market, recovery in Transportation, Building 566 Kt in FY 2020-21 from 750 Kt in FY 2019-20. remained favourable through the remainder of FY 2020-21. when the overall consumption declined by 8%, imports fell by & Construction, Industrial Equipment, and Consumer While aerospace demand is expected to remain muted into only 4%. Consequently, the share of imports increased from Durables. Imports of aluminium products, including scrap, Market share of Imports declined by 14% to 31% (178 Kt) FY 2021‑22, some end markets, including automotive and 58% in FY 2019-20 to 60% in FY 2020-21. Overall imports, continue to remain a major concern for domestic aluminium in FY 2020-21 from 45% (335 Kt) in FY 2019-20, the major specialities, have returned to pre-COVID demand levels due including scrap, touched ~2.1 Mt in FY21 from ~2.2 Mt producers. Over the last few years, the domestic rolled and contributing factor being CVD imposition on Imports of Copper to strong consumer demand. We believe the long-term trends in FY 2020. (See Table 2) foil industry has been witnessing an increase in dumping of Wire (<6mm dia) from Indonesia, Malaysia, Vietnam & Thailand for flat-rolled aluminium products remain strong. imports especially from China and FTA countries, at unfair (excluding SEI Thailand). 1.1.1 Outlook prices, leading to pricing pressure. In light of the existing Economic growth, material substitution, and sustainability In CY 2021, the global macroeconomic environment is business environment, pricing pressure due to imports in On the raw material side, copper mines production was almost considerations, including increased environmental awareness expected to recover sharply. As per the IMF, in April 2021, rolled products and foil is expected in the FY 2021-22 as well, flat, with only 0.1% growth in Copper concentrate production around polyethylene terephthalate (“PET”) plastics, continue the global economy is expected to rise by 6% in CY 2021 unless some proactive measures are taken by the Government globally in CY 2020 compared to the previous year. This was to support long-term increasing global demand for Aluminium compared to a contraction of 3.3% growth in CY 2020. to support the Aluminium industry in India. on account of multiple issues faced by the mining industry, and rolled products. With the exception of China where World ex-China demand is improving due to strong stimulus including COVID-19 disruptions, local community issues in can sheet overcapacity and strong competition remains, measures by global fiscal support and massive vaccination 1.2 Copper Segment and Industry Review some South American countries, a drop-in copper grade in favourable market conditions and increasing customer drive to support economic recovery. A strong push to global In CY 2020, on yearly basis, Global refined copper some large global mines. preference for sustainable packaging options is driving higher growth is from the US thanks to a massive fresh fiscal stimulus consumption saw a dip by 1% to 23.2 Mt as compared to demand for recyclable aluminium beverage cans and bottles. of $1.9 trn and President Biden’s $2.3 trn infrastructure and 23.3 Mt in CY 2019. The consumption in China grew by The tight concentrate market has impacted benchmark At the end of fiscal 2019, we began expanding rolling, casting jobs plan. 7%, whereas World Ex China, declined by 8%. The global Tc/ Rc for CY 2021 with the benchmark dropping by 3.7% and recycling capability in Pindamonhangaba, Brazil to Copper market was impacted adversely due to COVID-19. from 15.9 US cents/lb during CY 2020 to 15.3 US cents/ support this demand. Meanwhile, the long-term demand for Packaging likely to witness strong momentum, while demand lb. As far as spot Tc/Rc is concerned, the strong demand Aluminium in the automotive industry continues to grow, which in transport is likely to recover with increasing Electric vehicles from China coupled with almost flat growth in Concentrate Refined Copper Production (Mt) drove the investments we made in automotive sheet finishing sales. In CY 2021, primary demand is likely to grow by 12-13%. production resulted in a very tight market with Spot Tc/Rc capacity in North America, Europe, and Asia in recent years, In China, Strong solar, Electric Vehicles, Automotive and 16.0 being consistently below the annual benchmark of 15.3 c/lb 14.1 and is driving additional investments in Guthrie, Kentucky packaging sectors are likely to support Chinese consumption 13.8 and dropping to below 10 c/lb during the later part of the year. 14.0 (US), Changzhou, China, and Zhenjiang, China. This demand in CY 2021. In CY 2021, primary demand is likely to grow 12.0 has been primarily driven by the benefits that result from using by 8-9%. 10.0 9.3 9.5 1.2.1 Outlook lightweight Aluminium in vehicle structures and components, 8.0 Global demand for refined Copper is expected to increase by as companies respond to stricter government emissions and Global aluminium supply is likely to increase by 6% to 6.0 ~5.6% in CY 2021. China is expected to grow by ~4%, and the fuel economy regulations while maintaining or improving 68-69 Mt. Production in the world excluding China is 4.0 rest of World Ex China is expected to grow ~7%. We expect vehicle safety and performance, resulting in increased expected to increase by 4% to around 29-30 Mt. Primary 2.0 that Indian manufacturing activity will further improve, and competition with high-strength steel. aluminium supply in China is likely to grow marginally in the 0 with a fall in imports, recovery of demand will also sustain. 39-40 Mt range, on the back of ramp-ups at Yunnan. China World Ex-china At the start of this financial year, Indian refined copper demand We expect long-term demand for building and construction was expected to reach back to FY 2020 levels. However, surge CY 2019 CY 2020 and other speciality products will to grow due to increased In CY 2020, with an increase in supply by 6% and a sharp in COVID cases, and lockdowns across the country may result customer preference for lightweight, sustainable materials. growth in demand by 8% to 10%, market is expected to be in slower recovery. Demand for Aluminium plate in Asia expected to surge balanced. Consequently, the inventories are likely to remain driven by the development and expansion of industries stable at ~12-13 million tons by the end of CY 2021.

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serving aerospace, semi-conductor, rail and other technically Beverage can has historically been a relatively recession‑resistant 2. Business Segment Review demanding applications. We believe significant aircraft product, and demand for aluminium cans as a package type was 2.1 Hindalco – SWOT Analysis industry order backlogs for key original equipment very strong, particularly across the Americas. The automotive manufacturers (OEMs), including Airbus and Boeing, will industry was severely impacted by the slowdown resulting from translate into growth in the future, and we believe our multi- COVID-19 in the first quarter of FY 2020‑21, as major US and INDIA ALUMINIUM year supply agreements have positioned us to benefit from European automotive OEMs temporarily shut down production. future expected demand. However, the resumption of customer operations beginning in Strengths Weakness Opportunities Threats May 2020, combined with strong demand for larger vehicles like • Integrated business The acquisition provides a number of strategic benefits, pick-up trucks and SUVs, as well as strengthening demand for • Commodity product with a • Immense headroom for a • LME, forex and raw material model generating healthy smaller share of VAP currently growing market in India; price volatility including increasing the Company’s footprint as an aluminium electric vehicles, has driven demand for the automotive aluminium cash flows • Upstream business linked to LME Aluminium consumption in India • Competition from China th rolled products manufacturer and diversifying its product sheet to above pre-pandemic levels by the fourth quarter. While • The dominant player in volatility at 1/12 of global average India across upstream and • The threat of rising imports and customer portfolio, including by providing entry into we do see some short-term demand reduction resulting from • Rising Aluminium penetration downstream of scrap and other VAP to the aerospace market. The results from continuing operations the semi-conductor shortage impact on OEM production rates in in Building & Construction, India from the Free Trade • Utkal - among the world’s reported for the period ending March 31, 2021 reflect the the first half of calendar 2021, the long-term demand trends for Automotive, Packaging, and Agreement (FTA) countries most economical and efficient Transportation bodes well Aleris acquisition. automotive aluminium sheet remain strong. Alumina producers; capacity for growing VAP demand • Domestic availability/ expansion of 500 Kt in shortage of resources like progress and Utkal capacity • Substitution opportunity coal and bauxite For a region-wise detailed business overview, please refer Demand for specialities products has recovered from some to reach 2.0 Mt versus steel, uPVC, wood, among others. to the 10K filed by Novelis Inc. dated May 12, 2021 for the short-term reduced demand driven by COVID-19-related • Increased focused on Value year ended March 31, 2021. impacts early in fiscal 2021. Demand remains particularly strong Added Products (VAP) to be further de-linked to the global for aluminium sheet in the electronics market in Asia, as well as aluminium prices. 1.3.2 Outlook building and construction, transportation, and foil packaging in On the broader outlook on the global FRP, there has been North America and Asia. limited short-term impact resulting from the COVID-19 NOVELIS pandemic in some end markets, but long-term demands In aerospace, sharply lower consumer travel is expected to trends for FRP remain broadly intact. drive soft demand for aerospace sheet and plate for the next several quarters. Strengths Weakness Opportunities Threats • Global presence - across nine • Lack of access to Shanghai • Growing penetration of • Increasing tariffs and countries, enabling global Futures Exchange (SHFE) metal aluminium cans for beverage protectionist measures play with marquee customers in China and food packaging in emerging • Cost Competitiveness in • Market leader in Can and • China price competitiveness in markets China Automotive FRP products the Speciality market • The growing automotive • Price erosion on account of • The Aleris acquisition gave market is driven by EVs, growing competition Novelis entry in the high-end energy efficiency and aerospace segment providing light‑weighting focus across the • The pace of recovery from further product diversification. globe COVID-19 pandemic in the • ~61% share of recycling automotive and aerospace • Entry in the Aerospace, Defence sectors in Novelis portfolio - cost and High-end specialities competitiveness segments with the acquisition • The strategy of deploying of Aleris healthy cash flows to strategic expansions and staying ahead of the market 

COPPER

Strengths Weakness Opportunities Threats • A balanced portfolio of • Import dependence for • Immense headroom for growth • Mine disruptions revenue streams to tide Copper concentrate supplies due to lower consumption vs • Duties & FTAs – trade policies through volatile market global average • Secured concentrate supply via long term contracts with miners • Increased focused on VAP

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Hindalco Aluminium Business Review sales in all forms were at 1.250 million tons in FY 2020‑21 2.2 Operational Performance & Financial Review versus 1.290 million tons in FY 2019-20, mainly due to lower Financial Table: Standalone and Consolidated 2.2.1 Operational Overview – Aluminium sales in Q1 of FY 2020-21 on account of lockdown. Utkal (` Crore) The Company delivered a stable operational performance in Alumina also recorded production of 1.667 million tons Standalone Consolidated its aluminium business in FY 2020-21, despite the challenging and continues to be the most economical and efficient business environment. The Production and sales of Aluminium Description FY 2020-21 FY 2019-20 FY 2020-21 FY 2019-20 alumina producer globally, running at maximum capacity were impacted in the Q1 of FY 2020-21 on account of COVID-19. Revenue from Operations 42,701 40,242 1,31,985 1,18,144 to produce 1.6 million tons of world-class alumina and The production of Aluminium stood at 1.229 million tons in Earning Before Interest, Tax and Depreciation (EBITDA) providing strong support to most of Hindalco’s India FY 2020-21 versus 1.314 million tons in the corresponding Novelis* 12,727 10,435 smelting facilities, leading to better cost optimisation and year. The Overall Alumina production stood at 2.699 million quality input (Alumina). Production of VAP excluding wire Aluminium 4,855 3,749 tons versus 2.735 million tons in FY 2019-20. Overall metal rods was flat YoY, at 270 Kilo tons in FY 2020-21. Copper (including DHIL) 716 1,276 Other Segments 26 (38) Alumina Production (Million Tonnes) 2.2.2 Financial Overview Unallocable Income/ (Expense) - (Net) & GAAP Adjustments 572 114 Aluminium Total EBITDA 4,884 4,403 18,896 15,536 Revenue for Hindalco’s aluminium business (excluding Novelis) Depreciation & Amortisation (including impairment) 1,848 1,708 6,766 5,135 2.9 2.9 2.9 2.7 2.7 was `20,495* crore in FY 2020-21, from `21,804* crore in Finance Cost 1,469 1,679 3,738 4,197 FY 2019-20, down 6%. EBITDA was at `4,855 crore versus Earning before Exceptional Items, Tax & Share in Profit/ 1,567 1,016 8,392 6,204 1.5 1.5 1.6 1.6 `3,749 crore a year earlier, up 30% on account of favourable (Loss) in Equity accounted Investments 1.7 macros and lower input costs. The EBITDA margins were at Share in Profit/ (Loss) in Equity Accounted Investments (Net - - 5 4 24% in FY 2020-21, one of the best in the industry. of Tax) Earning before Exceptional Items and Tax 1,567 1,016 8,397 6,208 1.4 1.4 1.3 1.1 1.0 (*The above numbers are without elimination of Inter-segment revenue) Exceptional Income/ (Expenses) (Net) 7 (64) (492) (284) (` Crore) Profit Before Tax (After Exceptional Items) 1,574 952 7,905 5,924 Description FY 2020-21 FY 2019-20 % Change Tax Expense 581 332 2,723 2,157 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Revenue 20,495 21,804 -6% Profit/ (Loss) from Continuing Operations 993 620 5,182 3,767 EBITDA 4,855 3,749 30% Profit/ (Loss) from Discontinued Operations - - (1,699) - Other Refineries of Hindalco Utkal Profit/ (Loss) After Tax 993 620 3,483 3,767 Note: In the consolidated financial statements, within the aluminium * As per US GAAP segment, the significant entries are Hindalco and Utkal Alumina Metal Production (Million Tonnes) International Ltd. Since Utkal Alumina is a wholly-owned subsidiary of Hindalco and supplies a substantial quantity of its production to Hindalco, we have analyzed the combined performance of Hindalco’s aluminium 1.29 1.29 1.31 business along with Utkal Alumina. 1.27 1.23 2.3 Copper Business Review 2.3.1 Operational Overview The copper operations as well as the domestic market was impacted by the lockdown in Q1 of FY 2020-21 due to COVID-19. The copper cathode production was 262 Kt in FY 2020- 21, down 19% versus the last year. Copper rod production FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 was at 235 Kt in FY 2020-21 versus 263 Kt in FY 2019-20. Di‑Ammonium Phosphate (DAP) plant was under maintenance during the year for up-gradation from April 2020. Metal Sales in all forms (Million Tonnes)* Total Copper Metal Sales was at 313 Kt in FY 2020-21, down by 6% compared to 335 Kt in the previous year due to lower 1.25 1.27 1.30 1.29 1.25 production. The sales of Copper VAP (Copper Rods) were down by 9% at 233 Kt in FY 2020-21 versus 257 Kt in the previous year. The share of VAP (CC Rods) to Total metal sales was 74% in FY 2020-21, from 77% in the previous year.

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

* including wire rods amd other value added products

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market premiums. Below is the split of Revenue by businesses Cathode Production (Kt) 2.4 Novelis Business Review Shipments (Kt) and EBITDA $/ton in FY 2020-21 and the trend of revenues over the last five years. 2.4.1 Operational Overview 474 Revenue split by business for FY 2020-21 (%) Novelis Inc., with the acquisition of Aleris in FY 2020-21, is the 418 450 410 381 376 global leader of Flat-Rolled aluminium products and also the 354 347 321 world’s largest recycler of Aluminium. Driven by its purpose of 3,613 16 shaping a sustainable world together, Novelis works alongside 3,274 3,273 3,067 3,188 262 its customers to provide innovative solutions to the beverage can, automotive, aerospace, Building & Construction(B&C), Aluminium Copper and speciality markets (which includes foil packaging, 17 certain transportation products, architectural, industrial, Novelis and consumer durables). Novelis operates an integrated FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 network of technically advanced rolling and recycling facilities FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 67 across North America, South America, Europe, and Asia, and leverages its global manufacturing and recycling footprint to Shipments (Kt) EBITDA $/t Copper Metal Sales in All Forms (Kt) consistently deliver high-quality products around the world. With Novelis’ thrust on sustainability and recycled Aluminium, Revenue (D Crore) Novelis reported yet another year of its best-ever financial the share of recycled inputs was at 61% in FY 2020-21. 407 375 performance despite a challenging business environment. The Company has invested significantly in recycling initiatives 359 335 It recorded best-ever adjusted EBITDA and EBITDA per ton and developed high-tech recycling capabilities over the years. 130,542 131,985 313 in FY 2020-21 along with Aleris integration. The performance Its new 100 kt rolling, casting, and 60 Kt recycling expansion 115,820 118,144 was mainly driven by its portfolio optimisation, better cost projects in Pinda, Brazil is expected to be commissioned in 102,631 efficiencies, favourable product mix, innovations, customer FY 2021‑22, which will add to the overall rolling capacity of centricity and favourable demand for lightweight, sustainable the Company. aluminium solutions across end markets. Novelis leveraged its extensive recycling footprint and favourable market 2.4.2 Financial Overview FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 conditions to increase recycled content in its shipments to Novelis’ net sales in FY 2020-21 were at $12.3 billion, up 9%, 61% in FY 2020-21. mainly driven by higher shipments, as well as higher aluminum FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 prices and local market premiums. Adjusted EBITDA stood at Copper VAP - CC Rod Sales (Kt) In FY 2020-21, the total shipments, including Aleris was a record high of $1.714 billion, up 16%, on the back of portfolio 3.2 EBITDA up by 10% over the last year to 3.613 million tons. Share of optimisation, favourable metal prices, better cost efficiencies Consolidated EBITDA FY 2020-21 was higher by 22% to `18,896 257 beverage can sheet shipments were 60% in FY 2020‑21, and favourable foreign exchange and contribution by the ` 243 crore from 15,536 crore in the previous year. This was due 233 automotive body sheet shipments were at 16% in FY 2020-21, acquired businesses of Aleris in FY 2020-21. Aleris business to higher EBITDA in the aluminium business in India and despite market challenges in the initial quarter of FY 2020-21 contributed around $200 million EBITDA in FY 2020‑21. best-ever performance by Novelis in FY 2020-21. The EBITDA 164 156 due to the lockdown on account of the COVID-19 pandemic. Novelis reported free cash flow from continuing operations margin in FY 2020‑21 was better at 14% compared to 13% The Specialities and Aerospace shipments were 22% and 2% of $740 million driven by stronger adjusted EBITDA and in FY 2019‑20. The below graph shows the EBITDA split by respectively in FY 2020-21. lower capital expenditures. Net Income (without Exceptional businesses in FY 2020‑21 and the EBITDA trend of the last Items) from continuing operations stands at US$561 million in five years. Novelis operates in four key geographies: North America, FY 2020‑21 versus $590 million in FY 2019-20. Europe, Asia and South America. In North America, in FY EBITDA split by business: FY 2020-21 (%) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 2020-21, total shipments were 1,348 Kt. Novelis’ 200 Kt ($ Million) Description FY 2020-21 FY 2019-20 % Change 3 automotive finishing facility in Guthrie, Kentucky in the US, 26 has commissioned during FY 2020‑21 to cater to the growing Net Sales 12,276 11,217 9% 2.3.2 Financial Overview automotive demand in this region. Adjusted EBITDA 1,714 1,472 16% Copper Business (including DHIL) revenue for FY 2020-21 Net Income/ 561 590 -5% Aluminium was at `22,446* Crore (vs. `18,533* crore in FY 2019-20), up In Europe, the Company shipped 948 Kt across product (loss) w/o Special Copper by 21% due to higher prices of Copper in the latter half of the Items* categories in FY 2020-21. In Asia, Novelis shipped 740 Kt of Novelis financial year. EBITDA fell 44% at` 716 crore (vs. `1,276 crore in rolled products versus 711 Kt in FY 2019-20. Its automotive *Tax-effected special items may include restructuring & impairment, metal 4 FY 2019‑20) on account of lower volumes, lower Tc/Rc and by- Others finishing line expansion project of 100 Kt has commissioned price lag, gain/loss on assets held for sale, loss on extinguishment of debt, 67 product realisations in FY 2020-21 during the year. in FY 2020-21. In South America, Novelis shipped 577 Kt in loss/gain on sale of business *The above numbers are without elimination of Inter-segment revenue FY 2020-21, up from 559 Kt in the prior year. 3. Consolidated Financial Statements (` Crore) In FY 2020-21, Novelis reported a record overall adjusted 3.1 Revenue Description FY 2020-21 FY 2019-20 % Change EBITDA/ton of $474, up from $450/ton in the last year, Hindalco’s consolidated revenue was at `1,31,985 crore in Revenue 22,446 18,533 21% reflecting a strong and consistent performance year after year. FY 2020-21 compared to `1,18,144 crore in FY 2019‑20, up by EBITDA 716 1,276 -44% 12% mainly due to higher global aluminium prices and local

170 171 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

EBITDA (D Crore) 3.6 Taxes (iii) Interest Coverage Ratio: (vi) Return in Net Worth (RONW) Provision for the tax was at `2,723 crore in FY 2020-21 against The Consolidated Net Interest Coverage Ratio as on The Consolidated Return on Net Worth as on March 31, 2021 stands `2,157 crore in FY 2019-20. This increase in taxes was due to March 31, 2021 stands at 5.06 times versus 3.70 times at the at 5.58% compared to 6.51% as at March 31, 2020. This was lower 18,896 higher taxes in Novelis and also higher profitability of the end of March 31, 2020. This is higher over the previous year compared to the previous year due to the lower profits due to the 16,627 15,025 15,536 Company in FY 2020-21. because of higher earnings (EBIT) and lower interest and impact of one-time loss on account of discontinued operations 13,559 finance charges in FY 2020-21 on account of lower interest of `1,699 crore in FY 2020-21. RONW based on PAT for continuing rates in India compared to last year and refinancing of long business stands at 8.30% in FY 2020-21. 3.7 Profit/(Loss) after tax term loans in Novelis. This ratio reflects the Company’s Profit After Tax (PAT) in FY 2020-21 was at` 3,483 crore ability and strength to meet its interest obligations. compared to `3,767 crore a year ago. FY 2020-21 PAT includes (vii) Operating Margins one time loss of `1,699 crore on account of discontinued The Consolidated Operating margins in FY2020-21 stands at operations related to divestments of automotive assets (iv) Current Ratio 13.39% versus 12.15% in FY2019-20 reflecting higher operating FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 of Aleris in FY 2020-21. The net profit margin in FY 2020‑21 The Consolidated Current/Liquidity Ratio as on March 31, 2021 profit in FY2020-21 compared to the previous year. (Operating stands at 2.6% versus 3.2% in FY 2019-20. The PAT for stands at 1.39 times versus 1.78 times at the end of March 31, Margin = Operating Profit/Net Sales) Continuing operations for FY 2020-21 was up 38% year 2020 reflecting the Company’s strengthening of liquidity or 3.3 Finance Cost on year at `5,182 crore versus FY 2019-20. solvency position compared to the last year. Finance Cost decreased by 11% at `3,738 crore in (viii) Net Profit Margins FY 2020‑21 from `4,197 crore in FY 2019-20 due to lower The Consolidated Net profit margins in FY 2020-21 stands at interest cost of long term loans in India and refinancing of Profit After Tax (D Crore) (v) Debt to Equity Ratio 2.64% versus 3.19% in FY 2019-20. This was lower on account term loans by Novelis during the year. Novelis refinanced The Consolidated Debt to Equity Ratio as on March 31, 2021 of one-time loss of discontinued operations in FY2020-21 $1.1 billion of $1.7 billion 2017 term loans via New $500 stands well below 1.0 at 0.99 times versus. 1.15 times as on of ` (1,699) crore. The Consolidated Net Profit Margins for 6,083 million 2021 secured term loan due 2028, New €500 5,493 March 31, 2020. This reflects the Company’ strong balance Continuing operations stands at 3.93% in FY2020-21. (Net Profit million 3.375% senior unsecured green bond in Europe sheet and ability to meet its current short-term obligations. Margin = Net Profit/Net Sales) (~US$588 million) due 2029. The balance 2017 term loan 3,767 3,483 is to be repaid by Novelis before maturity in FY 2021-22. 1,900 3.4 Depreciation and amortisation (including net impairment loss/(reversal) of non-current assets) Depreciation and amortisation (including net FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 impairment loss/(reversal) of non-current assets) increased to `6,766 crore in FY 2020-21 from `5,135 crore in FY 2019-20 mainly on account of the addition of Aleris 3.8 Consolidated Net Debt to EBITDA business, capitalisation and certain reclassifications as per The consolidated balance sheet continued to remain strong, the accounting standards and exchange impact. with the Net Debt to EBITDA at 2.59 times at the end of March 2021 versus 2.61 times at the end of March 2020. 3.5 Exceptional Income/(Expense) The total exceptional expense (net) of `492 crore 3.9 Key Financial Ratios (Consolidated) in FY 2020-21 was majorly on account of `395 crore (i) Debtors Turnover (Days) charitable donation by the Company to support COVID-19 The Consolidated Debtors Turnover Days on March 31, 2021 pandemic relief measures and `131 crore related to improved to 31 days compared to 32 days at the end of March employee severance cost pursuant to restructuring 31, 2020. This shows consistency in managing its credit program in a manufacturing unit in Novelis Germany. with customers and this also reflects the Company’s strong The exceptional income of `127 crore was on account of financial position with respect to most of its customers. Renewable Energy Certificates (REC) recognised during The Debtor Turnover (days) is calculated as Average Debtors / the period after approval received from Odisha Electricity Total Consolidated Sales multiplied by 365 days. Regulatory Commission (OERC) permitting adjustment of excess REC purchased during earlier years against future (ii) Inventory Turnover (Days) Renewable Power Obligation (RPO) and reversal of excess The Consolidated Inventory Turnover Days on March 31, 2021 Renewable Power Obligation (RPO) provision related to was little higher at 80 days versus 75 days at the end of FY 2019-20 after Madhya Pradesh Electricity Regulatory March 31st, 2020. This shows how the Company managed Commission (MPERC) order. its inventory levels during the year. The Inventory (days) is calculated as Average Inventory / Cost of Goods Sold (Cost of Sales + Depreciation) multiplied by 365 days.

172 173 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

in FY 2020-21 has provided further product diversification and derivatives in commodity and currency, which is driven by the 3.10 Consolidated Cashflow: has strengthened Company’s long-term sustainable business Company’s comprehensive risk management policy. ` ` Cash generated from operations for Hindalco Consolidated stands at 17,232 crore in FY 2020-21 versus 12,745 crore in FY 2019-20. model. Novelis’ two auto finishing lines, in China and in the US with rolling, recycling and casting expansions in South America, Details of our initiatives and performance are provided in the The table below shows the comparative movement of Cash flows: makes Novelis well positioned to capture the tremendous market section on ‘Our Capitals’ in the report. (` Crore) opportunity as the industry leader in Aluminium flat rolled Consolidated products. 6. Sustainability Year ended Continuing to focus on aspects related to environment and Particulars 31-03-2021 31-03-2020 The domestic copper demand is largely in the form of rods safety, we have embarked on our journey of value creation and which is the downstream product for the copper business. Cash Flow from Operating Activities integrating sustainability concerns throughout our value chain. Hindalco’s strategy of enhancement of Copper VAP capacity Operating Cashflow before working capital changes 17,764 13,945 Aligning our approach with the elements of People, Planet and in terms of Copper Rods and Copper Inner Grooved Tubes will Changes in working capital 1,404 (1,098) Prosperity, we are progressing to nurture our business growth help the Company drive a larger market share and meet the with emphasising on building a greener, stronger and smarter Cash generated from operations before Tax 19,168 12,847 growing demand for Copper in the domestic market. business. Taking the next step on our journey of setting a (Payment)/Refund of Direct Taxes (1,256) (102) benchmark for the aluminium industry, we have set strategic Net Cash generated/ (used) -Operating Activities - Continuing Operations 17,912 12,745 Hindalco announced its Capital Allocation Framework priorities to further strengthen our sustainability goals. With Net Cash Generated/ (Used) - Operating Activities - Discontinued Operations (680) - with a guidance for the next five years with respect to strong ESG commitment being a part of our strategic priority, Net Cash Generated/ (Used) - Operating Activities (a) 17,232 12,745 broad allocation of its consolidated operating cashflows we aim to build an organisation that works towards reducing Cash Flow from Investment Activities after meeting maintenance capex and working capital its environmental footprints as well as providing a safe work Net Capital Expenditure (5,517) (6,858) requirement. The key focus of this framework is on pursuing environment for its people. Disposal of Investments in Subsidiaries (Net) - 25 profitable growth opportunities via organic expansions in (Purchase) / Sale of treasury instrument (Net) (2,775) (1,578) both India downstream as well as Novelis, strengthening Our Hindalco Sustainability Committee, led by the Managing Acquisition of business, net of cash acquired (19,524) - the Balance Sheet through deleveraging, creating clear road Director, helps us to keep track of our performance and map for ESG and overall shareholders value enhancement/ Investment in equity accounted investees - (3) carry out periodic reviews to identify areas of improvement. distributions of returns. Loans & Deposits (given) / received back (Net) (261) 266 Further, we have a task forces at the plant level which work Interest and dividends received 228 331 on initiatives related to energy, water, waste, and air quality management. Due to our energy-intensive operations, it Investment in Equity Shares at FVTOCI (43) (653) 5. Price Risk Management Hindalco’s financial performance was significantly impacted becomes imperative on us to adopt efficient ways of using Others 10 43 by fluctuations in prices of Aluminium, exchange rates and energy. Our constant focus on energy conservation has led Net Cash Generated/ (Used) - Investing Activities - Continuing Operations (27,882) (8,427) interest rates. The Company takes a structured approach to the us to achieve a renewable energy capacity of 49 MW and Net Cash Generated/ (Used) - Investing Activities - Discontinued Operations 2,245 - identification, quantification and hedging of such risks by using also, we have undertaken a target of 100 MW by FY 2022. Net Cash Generated/ (Used) - Investing Activities (b) (25,637) (8,427) Cash Flow from Financing Activities Equity Raised / Debentures Redeemed 2 4 Treasury shares acquired by ESOP Trust - (7) Net Debt inflows (968) 10,949 Interest & Finance Charges paid (3,678) (3,970) Dividend Paid (including Dividend Distribution Tax) (222) (320) Net Cash generated/ (Used) - Financing Activities - Continuing Operations (4,866) 6,656 Net Cash Generated/ (Used) - Financing Activities - Discontinued Operations (16) - Net Cash Generated/ (Used) - Financing Activities (c) (4,882) 6,656 Net Increase/(decrease) in Cash and Cash Equivalents (a) +(b) + (c) (13,287) 10,974

4. Business Outlook The Company’s relentless focus is on product innovation, better efficiencies, complete digitalisation, organic expansions with a Hindalco continued to deliver yet another strong and resilient diversified product mix and cost competitiveness. The Capacity performance across all the business segments in India as well 500 Kt expansion project at Utkal Alumina refinery will further as overseas, while maintaining safe and stable operations, as help in reducing the overall integrated cost of production going the business is catching up with a sharp recovery of the market, forward. The Company continues to focus on cash conservation supported by improved macros. The cost competitiveness of while maintaining adequate liquidity and deliver sustained Hindalco smelters continues to position it in the first quartile performance despite challenges on account of COVID-19 of the global cost curve. The Aleris integration is providing pandemic. The Company’s long-term strategic investments accelerated synergistic benefits, along with a positive EBITDA in Novelis and the India downstream expansion projects will contribution as we continue to unlock and capture the entire enhance its capabilities across the FRP and the Extrusion value of this acquisition. This year, Aleris contributed around segments in India. In addition, the acquisition of Aleris by Novelis $200 million to EBITDA, including synergies.

174 175 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

As energy consumption has a direct impact on the carbon managment of our environmental footprint. In our efforts In the year 2020, we completed Qualitative Exposure by digital capability building initiatives. We have extended footprint, we have also set a goal to achieve ‘Net Zero Carbon’ to strengthen our ties with our communities, we undertake Assessment (QlEA) and Quantitative Exposure Assessment our Potential Assessment process to a larger employee by 2050. Water management also forms an important part of various community development initiatives and engage (QnEA) studies of all our manufacturing facilities as well as population now to create a bigger talent pool and provide our sustainability agenda and we have set a target to achieve periodically through our community consultation programs. mining operations. Currently, we are in advanced stages of career opportunities. We have strengthened our partnership 20% reduction in our specific freshwater consumption by 2025. implementing all the recommendations made in these studies. with the business with the HR Business Partners working Our waste initiative ‘Value from Waste’ is directed towards Details of our initiatives and performance are provided in closely on talent management, capability building, driving the reduction of waste generation and maximising waste the section on ‘Our Capitals’ in the report. In 2020, the Company also initiated an offering of performance and strategic projects with them. This year we utilisation. Furthering this initiative, our aim is to achieve zero psychological safety training sessions to employees. have made our performance management process digital waste to landfill by 2030. Our progress towards a greener, 7. Safety In addition, looking at health needs, the Company at each unit by introducing a digital tool for normalisation. We have also stronger, smarter future will be led by our employees, As a responsible corporate citizen, Hindalco is fully also maintained a comprehensive wellness program, catering focused on increased development conversation as well as for whom we strive to provide a safe work environment dedicated to human health and safety, and it is our topmost to employees, their families and our communities. regular feedback. We have been closely working on increasing and ensure their holistic development. Our robust HR priority. Our plants and mines follow occupational health employee engagement and building an open, transparent and Management Framework is helping us to achieve this goal. and safety management standards that integrate safety Hindalco has an active Crisis Management Plan at the inclusive culture by working extensively on action plans based We plan to achieve our objective of ‘Zero Harm’ across the responsibilities into everyday business. Strong safety culture corporate, plant and mines level to ensure appropriate on the results of our employee engagement survey. organisation in the near future. is required to prevent fatalities and achieve good safety response to all natural disasters or other emergencies, performance. With focused efforts to further strengthen our including COVID-19. Details of our initiatives and performance are provided in the Ensuring the integration of sustainability efforts throughout safety culture, our safety performance this year has been section on ‘Our Capitals’ in the report. our value chain, we have developed a framework for supplier better than the past two years. That said, we also deeply 8. Human Capital assessment through which suppliers are assessed based on regret losing two contract workmen to work related injuries. With around 25,000 direct employees in India and another 9. Internal controls key environmental aspects. This helps us to ensure effective We shall continue to focus on various elements of safety 12,500 outside the country, people are at the centre of driving A strong culture of Internal Controls is pervasive throughout culture to make Hindalco a ‘Zero Harm’ organisation. excellence at Hindalco. The Aditya Birla Group is one of the the Group. Regular internal audits at all locations are most preferred employers in the country which enables us to undertaken to ensure that the highest standard of Internal During the year, we introduced an e-permit system. We attract the required talent and retain them. Controls is maintained. The effectiveness of a business’ also introduced the Serious Injuries and Fatality. With internal control environment is a component of senior this standard, we have now 9 technical safety standards, Keeping in mind the new normal, we are constantly management performance appraisals. The principal aim of the 4 occupational health standards and 8 administrative working on our Employee Value Proposition and innovating system of internal control is the management of business risks, safety standards. Our standards and procedures provide our programs and interventions for holistic employee with a view on enhancing shareholder value and safeguarding a consistent approach to managing major hazards across development. We swiftly moved our human interventions in a the Group’s assets. It provides reasonable assurance on our operations. To meaningfully implement the standards, way that enabled and supported employees to perform during the internal control environment and against material we developed 300 subject matter experts (SME). This is in the change. A series of online programs on behavioural/ misstatement or loss. addition to the 866 SMEs developed in the last couple of leadership and functional/technical aspects were supported years. Every year we audit our entire operations against our standards and require our businesses to meet their health and safety performance requirements and targets. The audits for all 15 manufacturing sites of Hindalco were conducted virtually using “RealWare”. In addition, we Cautionary Statement conducted risk reviews of all activities (51000 plus) having Statements in this “Management Discussion and Analysis” describing the Company’s objectives, projections, estimates, manual interventions. expectations or predictions may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a Despite limitations on classroom safety training due to difference to the Company’s operations include global and Indian demand supply conditions, finished goods prices, feedstock COVID-19, this year too we could invest 3 man hours per availability and prices, cyclical demand and pricing in the Company’s principal markets, changes in the government regulations, person (including direct employees and contract workmen). tax regimes, economic developments within India and the countries within which the Company conducts business and other We focused more on-the-job training and, wherever, factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise possible conducted virtual trainings. COVID-19 accelerated any forward looking statements, on the basis of any subsequent development, information events or otherwise. the digital transformation of our health and safety activities. More than 60 virtual training were conducted during the year with the help of Hindalco Technical University. We started using new BBS module incorporated in “Enablon” to report safety interventions and behaviour-based safety observations.

We have devised many platforms in the form of safety taskforces and subcommittees for each employee to participate in various safety programs. All employees have deemed safety officers and contribute to the safety of the units and mines at every level.

176 177 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

FINANCIAL HIGHLIGHTS - CONSOLIDATED

(` Crore) (` Crore) 2020-21@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@ 2014-15 2013-14 2012-13 2011-12 2020-21@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@ 2014-15 2013-14 2012-13 2011-12 PROFITABILITY US$ in US$ in Mn * Mn* Sales and Operating Revenues 17,779 131,985 118,144 130,542 115,820 102,631 101,202 106,696 90,007 82,243 82,549 Net Worth represented by : Less: Cost of Sales 15,398 114,311 103,794 115,042 101,899 90,183 92,387 97,751 81,721 74,406 74,365 Equity Share Capital 30 222 222 222 223 223 205 207 206 191 191 Operating Profit 2,381 17,674 14,350 15,500 13,921 12,448 8,815 8,944 8,286 7,837 8,184 Other Equity: Other Income 165 1,222 1,186 1,127 1,105 1,111 1,189 1,105 1,017 1,012 783 Share Warrants ------6 541 541 Less: Depreciation, Amortization and 911 6,766 5,135 4,766 4,607 4,469 4,507 3,591 3,553 2,861 2,864 Impairment Equity Component of Compound Financial 1 4 4 4 4 4 3 - - - - Instruments Less: Interest and Finance Charges 504 3,738 4,197 3,778 3,911 5,742 5,134 4,178 2,702 2,079 1,758 Reserves and Surplus 8,164 59,717 55,577 52,599 47,644 41,770 36,443 38,122 40,393 34,597 31,179 Profit before Share in Equity Accounted 1,131 8,392 6,204 8,083 6,508 3,348 362 2,280 3,049 3,909 4,345 Investments, Exceptional Items and Tax Other Comprehensive Income 901 6,590 2,514 4,676 6,980 4,062 3,956 - - - - Share in Profit/ (Loss) in Equity Accounted 1 5 4 - (125) (25) 172 175 67 (16) 50 9,096 66,533 58,317 57,501 54,851 46,059 40,607 38,329 40,605 35,330 31,911 Investments (Net of Tax) Profit before Tax and Exceptional Items 1,132 8,397 6,208 8,083 6,383 3,323 534 2,455 3,116 3,893 4,395 Exceptional Income/(Expenses) (Net) (66) (492) (284) - 1,774 (8) (577) (1,940) (396) - - RATIOS AND STATISTICS @ @ @ @ @ @ Profit/ (Loss) before Tax from Continuing 1,066 7,905 5,924 8,083 8,157 3,315 (43) 515 2,720 3,893 4,395 Unit 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 2012-13 2011-12 Operations Operating Margin % 13.39 12.15 11.87 12.02 12.13 8.71 8.38 9.21 9.53 9.91 Less: Tax Expenses 367 2,723 2,157 2,588 2,074 1,433 498 256 525 886 786 Net Margin % 2.64 3.19 4.21 5.25 1.85 (0.25) 0.80 2.42 3.68 4.12 Profit/ (Loss) from Continuing Operations 699 5,182 3,767 5,495 6,083 1,882 (541) 258 2,195 3,007 3,608 Gross Interest Cover ^ Times 4.73 3.57 4.37 3.83 2.36 1.91 1.95 1.85 2.04 3.16 Profit/ (Loss) from Discontinued Operations (229) (1,699) - - - - (161) - - - - (Net of Tax) Net Interest Cover Times 5.06 3.70 4.40 3.84 2.36 1.95 2.41 3.44 4.26 5.10 Profit/ (Loss) before Non-Controlling Interest 470 3,483 3,767 5,495 6,083 1,882 (702) 258 2,195 3,007 3,608 ROCE % 9.40 8.83 10.94 9.61 8.32 5.08 5.97 5.66 7.07 9.02 Less: Non-Controlling Interest in Profit/ (Loss) - - - (1) - (18) (451) (596) 20 (20) 211 ROE % 5.58 6.51 9.78 12.06 4.39 (0.64) 2.16 5.73 9.00 11.15 Net Profit/ (Loss) for the Period 470 3,483 3,767 5,496 6,083 1,900 (251) 854 2,175 3,027 3,397 Basic EPS ` 15.66 16.94 24.67 27.30 9.22 (4.55) 4.14 10.91 15.81 17.74 Business Reconstruction Reserve (BRR) # Diluted EPS ` 15.65 16.93 24.66 27.29 9.22 (4.55) 4.13 10.91 15.81 17.74 Expenses adjusted against BRR (Net of Tax) ------682 97 86 - 500 Cash EPS ^^ ` 46.07 40.03 46.07 47.98 30.91 20.78 21.53 28.73 30.75 32.70 Profit/ (Loss) for the Period had the 470 3,483 3,767 5,496 6,083 1,900 (933) 757 2,089 3,027 2,896 Capital Expenditure (Cash outflow) ` Crore 5,565 6,791 6,005 3,001 2,938 4,245 5,978 9,424 11,871 12,512 expenses not adjusted against BRR Debt Equity Ratio Times 0.99 1.15 0.91 0.95 1.39 1.66 1.79 1.63 1.63 1.29 Book value per Share ` 296.07 259.56 256.07 244.33 205.32 196.64 185.61 196.67 184.53 166.68 FINANCIAL POSITION * Balance Sheet items are translated at closing exchange rate and Profit and Loss items are translated at average exchange rate. Gross Fixed Assets (excluding CWIP) 21,470 157,052 140,334 130,142 125,094 121,186 123,522 101,940 87,914 60,054 53,961 ** Including Intangible assets under development. Capital Work-in-Progress (CWIP) ** 1,395 10,202 7,721 4,098 2,063 1,814 4,214 14,111 23,059 33,834 22,798 # Financial restructuring scheme formulated by the Company under the provisions of the Companies Act, approved by the Bombay High Court, to deal with Less: Accumulated Depreciation, 7,763 56,783 51,139 44,283 40,006 36,499 37,849 29,981 26,750 22,126 18,661 various costs associated with its organic and inorganic growth plan. Amortization and Impairment @ Figures for FY 2020-21, FY 2019-20, FY 2018-19, FY 2017-18, FY 2016-17 and FY 2015-16 are as per Ind AS compliant financial statements. Previous periods Net Fixed Assets 15,102 110,471 96,916 89,957 87,151 86,501 89,887 86,070 84,223 71,763 58,098 figures are as per Previous GAAP financial statements. ^ Gross interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges plus Finance costs transferred Investments 2,342 17,133 9,411 9,012 10,781 15,157 12,438 12,346 12,961 12,601 10,551 to Capital Work-in-Progress/ Intangible Assets under development. Other Non-Current Assets /(Liabilities) (Net) (1,612) (11,794) (12,407) (9,581) (8,497) (6,737) (8,859) (7,235) (6,924) (6,573) (5,758) ^^ Cash EPS is calculated as Profi t/ (Loss) for the year plus Depreciation, Amortization and Impairment divided by Weighted average numbers of equity Net Current Assets 2,285 16,711 31,664 20,538 17,499 14,961 15,074 16,571 18,289 16,901 11,771 shares. Capital Employed 18,117 132,521 125,584 109,926 106,934 109,882 108,540 107,752 108,549 94,692 74,662 Less: Loan Funds 9,020 65,978 67,257 52,416 52,074 63,817 67,552 68,467 66,163 57,603 41,042 Less: Non-Controlling Interest 1 10 10 9 9 6 381 956 1,781 1,759 1,709 Net Worth 9,096 66,533 58,317 57,501 54,851 46,059 40,607 38,329 40,605 35,330 31,911

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FINANCIAL HIGHLIGHTS - STANDALONE

(` Crore) (` Crore) 2020-21@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@ 2014-15 2013-14 2012-13 2011-12 2020-21@ 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@ 2014-15 2013-14 2012-13 2011-12 PROFITABILITY US$ in US$ in Mn* Mn*

Sales and Operating Revenues 5,752 42,701 40,242 45,749 43,446 39,383 36,713 36,869 30,101 28,070 28,297 Net Worth represented by : Equity Share Capital 30 222 222 222 223 223 205 207 206 191 191 Less: Cost of Sales 5,182 38,467 36,578 41,503 38,322 34,569 33,367 33,453 27,609 25,866 25,192 Other Equity: Operating Profit 570 4,234 3,664 4,246 5,124 4,814 3,346 3,417 2,492 2,204 3,105 Share Warrants ------541 541 Other Income 88 650 739 940 948 1,005 979 882 1,124 983 616 Reserves and Surplus 6,058 44,310 43,482 43,285 42,497 41,235 36,568 37,049 36,526 33,240 31,300 Less: Depreciation, Amortization and 249 1,848 1,708 1,693 1,617 1,428 1,282 837 823 704 690 Impairment Other Comprehensive Income 756 5,532 1,790 5,051 6,731 5,875 5,386 - - - - 6,844 50,064 45,494 48,558 49,451 47,333 42,159 37,255 36,732 33,972 32,032 Less: Interest and Finance Charges 198 1,469 1,679 1,683 1,901 2,323 2,390 1,637 712 436 294

Profit before Exceptional Items and Tax 211 1,567 1,016 1,810 2,554 2,068 653 1,825 2,081 2,047 2,737 RATIOS AND STATISTICS Exceptional Income/ (Expenses) (Net) 1 7 (64) - (325) 85 - (578) (396) - - Unit 2020-21@ 2019-20@ 2018-19@ 2017-18@ 2016-17@ 2015-16@ 2014-15 2013-14 2012-13 2011-12 Profit/ (Loss) before Tax from Continuing 212 1,574 952 1,810 2,229 2,153 653 1,247 1,685 2,047 2,737 Operating Margin % 9.92 9.11 9.28 11.79 12.22 9.11 9.27 8.28 7.85 10.97 Operations Net Margin % 2.33 1.54 2.63 3.31 3.95 1.50 2.51 4.70 6.05 7.91 Less: Tax Expenses 78 581 332 605 793 596 99 322 272 347 500 Gross Interest Cover^ Times 3.29 2.62 3.08 3.18 1.73 1.81 1.75 1.50 1.61 3.62 Profit/ (Loss) from Continuing Operations 134 993 620 1,205 1,436 1,557 554 925 1,413 1,699 2,237 Net Interest Cover Times 3.32 2.62 3.08 3.19 2.51 1.81 2.63 5.08 7.31 12.67 Profit/ (Loss) from Discontinued Operations ------(2) - - - - ROCE % 4.38 3.94 5.07 6.18 6.04 4.44 5.30 4.53 4.71 7.10 (Net of Tax) ROE % 2.08 1.32 2.46 2.97 3.48 1.39 2.50 4.00 5.15 7.25 Profit/ (Loss) for the Period 134 993 620 1,205 1,436 1,557 552 925 1,413 1,699 2,237 Basic EPS ` 4.46 2.79 5.41 6.45 7.56 (0.64) 4.48 7.09 8.88 11.69 Business Reconstruction Reserve (BRR)# Diluted EPS ` 4.46 2.79 5.41 6.45 7.55 (0.64) 4.48 7.09 8.87 11.68 Expenses adjusted against BRR (Net of Tax) ------682 97 86 - - Cash EPS^^ ` 12.77 10.47 13.01 13.70 14.49 8.95 8.53 11.22 12.55 15.29 ` Profit/ (Loss) for the Period had the 134 993 620 1,205 1,436 1,557 (130) 828 1,327 1,699 2,237 Dividend per Share ## 3.00 1.00 1.20 1.20 1.10 1.00 1.00 1.00 1.40 1.55 expenses not adjusted against BRR Capital Expenditure (Cash outflow) ` Crore 1,137 1,395 1,263 1,178 1,041 1,399 2,073 3,458 5,531 7,168 Debt Equity Ratio Times 0.40 0.51 0.40 0.41 0.57 0.68 0.78 0.75 0.73 0.45 FINANCIAL POSITION Book value per Share ` 222.84 202.49 216.25 220.28 211.00 204.16 180.41 177.92 177.44 167.31

Gross Fixed Assets (excluding CWIP) 6,983 51,080 50,296 48,898 48,264 46,742 43,316 35,434 26,804 15,073 14,478 Market Capitalisation $ ` Crore 73,433 21,502 46,145 48,166 43,756 18,162 26,638 29,266 17,538 24,774

Capital Work-in-Progress (CWIP)** 234 1,709 1,282 982 737 712 3,079 10,744 17,277 23,605 16,257 Number of Equity Shareholders Nos. 348,471 332,014 304,345 299,521 319,783 392,888 338,655 361,686 441,166 383,724 Number of Employees Nos. 20,971 22,477 22,865 23,555 23,679 24,118 21,976 20,902 20,238 19,975 Less: Accumulated Depreciation, 2,555 18,690 16,928 15,376 13,900 12,358 11,063 9,374 8,749 7,975 7,328 Amortization and Impairment Average Cash LME (Aluminium) US$ 1,802 1,749 2,035 2,046 1,688 1,592 1,888 1,773 1,976 2,317

Net Fixed Assets 4,662 34,099 34,650 34,504 35,101 35,096 35,332 36,804 35,332 30,703 23,407 Average Cash LME (Copper) US$ 6,879 5,855 6,337 6,451 5,152 4,852 6,556 7,103 7,855 8,485 * Balance Sheet items are translated at closing exchange rate and Profit and Loss items are translated at average exchange rate. Investments 4,338 31,731 24,639 25,495 27,025 29,332 27,311 21,251 21,907 20,482 18,087 ** Including Intangible assets under development. Other Non-Current Assets/(Liabilities) (Net) (323) (2,365) (2,223) (1,565) (708) 516 (1,038) (1,193) (1,174) (751) (207) # Financial restructuring scheme formulated by the Company under the provisions of the Companies Act, approved by the Bombay High Court, to deal with various costs associated with its organic and inorganic growth plan. Net Current Assets 892 6,528 11,478 9,658 8,330 9,539 9,230 9,400 8,339 8,409 5,319 ## Proposed/Interim Dividend for the Period. @ Figures for FY 2020-21, FY 2019-20, FY 2018-19, FY 2017-18, FY 2016-17 and FY 2015-16 are as per Ind AS compliant financial statements. Previous periods Capital Employed 9,569 69,993 68,544 68,092 69,748 74,483 70,835 66,262 64,404 58,843 46,606 figures are as per Previous GAAP financial statements. $ including Treasury shares held by the Company. Less: Loan Funds 2,724 19,929 23,050 19,534 20,297 27,150 28,676 29,007 27,672 24,871 14,574 ^ Gross interest coverage ratio is calculated as Operating Profit plus Other Income divided by Interest and Finance Charges plus Finance costs transferred Net Worth 6,844 50,064 45,494 48,558 49,451 47,333 42,159 37,255 36,732 33,972 32,032 to Capital Work-in-Progress/ Intangible Assets under development. ^^ Cash EPS is calculated as Profit/ (Loss) for the year plus Depreciation, Amortization and Impairment divided by Weighted average numbers of equity shares.

180 181 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements DIRECTORS’ REPORT

Dear Shareholders, Dividend: For the year ended 31st March,2021, the Board of Directors of your Company has recommended dividend of ` 3.00 per share Your Directors have pleasure in presenting the 1st Integrated Annual Report and 62nd Annual Accounts of your company for the (Previous year ` 1.00 per share) to equity shareholders. year ended 31st March, 2021. Equity shares that may be allotted upon exercise of Options granted under the Employee Stock Option Scheme and out of FINANCIAL HIGHLIGHTS the Share Capital Suspense before the Book Closure for payment of dividend will rank paripassu with the existing shares ` in Crore and shall also be entitled to receive the aforesaid dividend.

Consolidated Standalone In terms of provisions of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations & Disclosure 2020-21 2019-20 2020-21 2019-20 Requirements) Regulations, 2015, herein after referred to as “Listing Regulations” your Company has formulated a Dividend Revenue from Operations 131985 118144 42701 40242 Distribution Policy. The Policy is given in Annexure I to this Report and is also accessible from your Company’s website www.hindalco.com. Other Income 1222 1186 650 739 Profit Before Interest, Tax and Depreciation 18896 15536 4884 4403 OVERVIEW AND STATE OF THE COMPANY’S AFFAIRS: (PBITDA) The Standalone and Consolidated Financial Statements for the Financial Year ended 31st March, 2021 have been prepared in Depreciation and Amortisation 6628 5091 1708 1708 accordance with the Indian Accounting Standards (IND AS) as notified by the Ministry of Corporate Affairs. Impairment Loss/(Reversal) of Non Current Assets 138 44 140 - (Net) Standalone full year highlights Finance Costs 3738 4197 1469 1679 Your Company registered a revenue of ` 42,701 crores for the fiscal year 2021 vs ` 40,242 crores in the previous year up 6% on account of higher global prices of aluminium and copper in FY21 versus FY20. EBITDA (Earnings before Interest, Tax, Profit before Exceptional Items and Tax Share in 8392 6204 1567 1016 Depreciation and Amortisation) stood at ` 4,884 crores, up 11% compared to the last year, on account of higher profitability Profit / (Loss) in Equity Accounted Investments in Aluminium business supported by improved macros, cost optimization and a strong market recovery, partially offset by Share of Equity Accounted Investments 5 4 - - lower profitability in copper business impacted by lockdown due to COVID and lower TC/RC in FY21. Depreciation was flat Profit before Exceptional Items and Tax 8397 6208 1567 1016 Year on Year at ` 1708 crore in FY21 versus FY20. The Finance Cost was lower on Year by 13% at ` 1,469 crores in FY21 versus Exceptional Items (492) (284) 7 (64) ` 1,679 crores in FY20. This reduction in finance cost was mainly due to overall reduction in the average cost of long-term loans on account of re-financing. The Profit before Tax (and Before Exceptional Items) stood at` 1,567 crore, up by 54% compared Profit before Tax 7905 5924 1574 952 to the previous year due to higher EBITDA. Net Profit for FY21 stood at` 993 crores as compared to ` 620 crore up 60% Year Tax Expenses 2723 2157 581 332 on Year compared to the previous year. Profit/ (Loss) for the year from Continuing 5182 3767 - - Operations Consolidated Full Year Highlights Profit/ (Loss) for the Year from Discontinued (2066) - - - ` ` Operations Hindalco’s Consolidated Revenue stood at 1,31,985 crore for FY21 compared to 1,18,144 crore in the previous year up 12% on account of higher global prices of aluminium and copper in FY21 versus FY20. The Company recorded consolidated Tax Expense/ (Benefit) of Discontinued Operations (367) - - - EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of ` 18,896 crore, up by 22% due to favorable macro Profit/ (Loss) for the year from Discontinued (1699) - - - and lower input costs in FY21 versus FY20. Consolidated Profit before Tax (and Before Exceptional Items) was ` 8,397 crore Operations in FY21, up by 35% compared to the previous year on account of higher EBITDA and lower interest costs. Net Profit after Tax Profit/ (Loss) for the year 3483 3767 993 620 in FY21, stood at ` 3,483 crores compared to ` 3,767 crores in the previous year down 8% Year on Year mainly on account of Other Comprehensive Income / (Loss) 4784 (2723) 3780 (3400) loss due to discontinued operations in FY21 due to loss booked on the divestiture of automotive assets in Aleris business acquired by Novelis during the year. For detailed analysis, refer to the Management Discussion and Analysis section of the Total Comprehensive Income 8267 1044 4773 (2780) Integrated Annual Report. Basic EPS - Continuing Operations (`) 23.30 16.94 - - Basic EPS - Discontinued Operations (`) (7.64) - - - Basic EPS (`) 15.66 16.94 4.46 2.79 Highlights of the Company’s Subsidiaries: 1. Utkal Alumina International Limited Appropriations to Reserves : Utkal Alumina revenues were ` 2,764 crore in FY21 compared to ` 2,653 crore in FY20 up by 4% because of higher transfer ` in Crore pricing compared to last year on account of higher average global alumina prices in FY21 versus FY20. Appropriations 2020-21 2019-20 Opening Balance in Retained Earnings and Other Comprehensive Income 6624 9865 The EBITDA for FY21 stood at ` 1,371 crore higher by 38% compared to ` 992 crore in FY20. The Profit after Tax in FY21 was ` 605 crore versus ` 317 crore in FY20 up by 91% Year on Year on account of higher EBITDA in FY21. (Refer to the Total Comprehensive Income for the Current Year 4773 (2780) table below for comparison in FY21 versus FY20 key financial number) Dividends paid (222) (316) Transition Impact - Leases (Ind AS 116) - (9) Particulars FY2020-21 FY2019-20 % Change Hedging (Gain)/ Loss and cost of hedging transferred to non financial assets (1) 14 Revenue 2,764 2,653 4% Employee Share Based Transcations 2 - Transferred to Debenture Redemption Fund (150) (150) EBITDA 1,371 992 38% Closing Balance in Retained Earnings and Other Comprehensive Income 11026 6624 PAT 605 317 91%

182 183 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

DIRECTORS’ REPORT

2. Novelis Inc. HUMAN RESOURCES having multidisciplinary teams of technical experts, scientists ABRIDGED ANNUAL REPORT The Performance highlights of Novelis Inc. are provided in Several innovative people - focused initiatives have been and engineers, enables your company to develop building MCA General circular No. 20/2020 dated 5th May 2020 and detail for FY21 versus FY20 in the Management Discussion instituted at the Group level, and these are translated into competencies in select areas, as a long term value to business. General Circular No. 02/2021 dated 13th January,2021 states and Analysis Section of the Integrated Annual Report. Both the HICs at Belagavi and Taloja as well as ABSTCPL are action at all of the Group Companies. Our basic objective is to that considering prevailing situation and owing to difficulties ensure that a robust talent pipeline and a high-performance DSIR, GOI recognised R&D Centres. Key Initiatives involved in dispatching of physical copy of financial statements culture, centred around accountability is in place. We feel this (including Board’s report, Auditor’s report or other documents In India operations, the 500Kt Utkal’s Alumina refinery is critical to enable us retain our competitive edge. CONSOLIDATED FINANCIAL STATEMENTS required to be attached therewith), such statements shall be brownfield capacity expansion is on track with mechanical The Consolidated Financial Statements for the year ended completion by Q1FY22-end and commercial production to RESEARCH AND DEVELOPMENT 31st March, 2021 have been prepared by your Company in sent only by email to the members and to all other persons so entitled. Therefore Company has decided neither to print begin in Q2FY22. This project is at a capital outlay of around Your Company’s Research & Development (R&D) activities accordance with the provisions of the Companies Act, 2013, ` 1,500 crore. This will further help strengthen the Company’s are focused on providing innovative, cost-effective and (“the Act”) read with the Companies (Accounts) Rules, 2014, Full Integrated Annual Report nor prepare Abridged Annual integration and boost the availability of best- in-class alumina sustainable solutions to support consistent growth of applicable Accounting Standards and the provisions of Report. You are kindly requested to take note of the same. and in a reduction of the overall cost of production going business. The R&D activities of your Company include process, “Listing Regulations” and forms part of the Integrated Annual forward. product and application development, to develop short term Report. DIRECTORS’ RESPONSIBILITY STATEMENT as well as long term solutions to the issues faced by non- As stipulated in Section 134(3)(c) of the Companies Act, In the downstream expansion projects in India, the Company ferrous sector, such as, raw material quality, cost effective EMPLOYEE STOCK OPTION SCHEMES 2013 “the Act”, your Directors subscribe to the “Directors’ made a good progress, announcing its plans to set up a management of waste generated during processing, recovery ESOS – 2006 Responsibility Statement” and confirm that: st 34,000-tonne extrusion plant at Silvassa. The new plant of value from by-product as well as any waste products, During the year ended 31 March 2021, the Company has will service the fast-growing market for extruded aluminium allotted 65,652 fully paid-up equity share of ` 1/- each of developing better understanding of the science of processes, a) in the preparation of the annual accounts, applicable products in the western and southern regions. This is a the Company (Previous year 3,59,415) on exercise of options reducing the specific energy consumption and carbon accounting standards have been followed along with ` 730-crore project with intention to build a larger value- under ESOS 2006. footprint etc. Specific programs have also been initiated to added product portfolio over the next few years. The on-going proper explanations relating to material departures; foster better understanding of the requirement of existing downstream expansion projects will not only enhance the ESOS – 2013 and prospective customers, and to provide a better service Company’s capabilities but also help the Company to become During the year ended 31st March 2021, the Company has b) the accounting policies selected have been applied through application development, so as to increase your further delinked from the volatility of global aluminium prices allotted 3,95,908 fully paid-up equity share of ` 1/- each of consistently and judgments and estimates have been company’s market share in the chosen market space. Technical and thus move towards a more sustainable business model. the Company (Previous year 3,33,027) on exercise of options made that are reasonable and prudent so as to give a competencies developed by your company will go a long under ESOS 2013. true and fair view of the state of affairs of the company way in terms of quick absorption of technologies, enabling On April 14, 2020, Novelis closed its acquisition of Aleris as at 31st March,2021 and of the profit of your company pushing boundaries of our processes, so as to increase Corporation. Novelis’ acquisition of Aleris is expected to ESOS – 2018 for that period; the economic performance and improve our new product/ provide a strong pro-forma financial profile, many strategic During the year, the Company has granted 582,240 stock benefits including securing an integrated manufacturing new application pipeline to address the impending market options (Previous year 307,716) and 20,487 RSUs (Previous opportunities. c) proper and sufficient care has been taken for the footprint in China, further portfolio diversification with the year 72,355) under ESOS 2018. maintenance of adequate accounting records in addition of aerospace and building and construction, as accordance with the provisions of the Act for safeguarding well as new technology and operational capabilities. Novelis Your Company already operates three Hindalco Innovation Hindalco Employee Welfare Trust has transfered 60,707 fully the assets of your company and for preventing and is focused on the safe integration of Aleris’ continuing Centres (HIC), one HIC-Alumina at Belagavi working on R&D paid-up equity share of ` 1/- each of the Company during the detecting fraud and other irregularities; operations to drive several strategic benefits. of bauxite ore, alumina refining and specialty alumina, hydrate year on exercise of Options under ESOS 2018. products and their application in different end uses; as well Novelis’ greenfield expansion projects of 200 Kt automotive as waste management; and one HIC-SemiFab located at The details of Stock Options and Restricted Stock Units d) the annual accounts of your Company have been finishing facility in Guthrie, Kentucky in the US and additional Taloja, near Mumbai, working in the area of tribology, energy granted under the above-mentioned Schemes are available prepared on a going concern basis; 100 Kt of Auto finishing line in China, were both commissioned and environment management and aluminium fabricated on your Company’s website viz. www.hindalco.com. and have started its commercial shipments in Q4FY21. products and new applications. Additionally, R&D Team at e) your Company had laid down internal financial controls A certificate from the statutory auditor on the implementation Birla Copper, Dahej, is focusing on maximisation of copper and that such internal financial controls are adequate Customer qualification continues to ramp up at both facilities of your Company’s Employees Stock Option Schemes will be to meet strong demand for lightweight, automotive aluminum recovery as well recovery of various metal values, such as, and were operating effectively; Selenium, Tellurium, Nickel, Bismuth, etc., from the effluent placed at the ensuing Annual General Meeting for inspection sheet. by the members. generated in the plant and value added applications of the f) your Company has devised proper system to ensure The rolling, casting and recycling capacity in Pinda, Brazil solid wastes generated, namely, copper slag and phospho- There is no material change in the Schemes and the compliance with the provisions of all applicable laws gypsum. In addition, your company engages the Aditya Birla to meet growing customer demand is also expected to be aforementioned schemes are in compliance with SEBI ( Share and that such systems were adequate and operating commission by the end of FY22. In addition to this, Novelis Group’s corporate research and development centre, Aditya Based Employee Benefits) Regulations, 2014. effectively. investment to expand and upgrade recycling capacity at its Birla Science and Technology Company Private Limited (“ABSTCPL”), for conducting R&D in select areas of work Greensboro facility in the US is also expected to be completed CORPORATE GOVERNANCE ENERGY, TECHNOLOGY AND FOREIGN by end of FY22. through chartered R&D projects. These are based on the Your Directors reaffirm their continued commitment to good domain expertise and R&D facilities available in ABSTCPL. corporate governance practices. Your Company fully adheres EXCHANGE During the year, the Company announced its capital allocation Parallelly, we also work with different R&D institutes of to the standards set out by the Securities and Exchange Board The information on conservation of Energy, Technology framework on a consolidated basis with a clear roadmap to national and international reputes to develop technologies of India for Corporate Governance practices. Absorption and Foreign Exchange Earnings and Outgo deleveraging, profitable growth via organic expansions in for our mutual benefits. The engagement has resulted into stipulated under Section 134(3)(m) of the Companies Act, India as well as in Novelis and distribution of shareholder patent applications, which have been and will be assigned to The entire report on Corporate Governance forms part of 2013, read with Companies (Accounts) Rules, 2014 is set out returns. your company on the grant of the patent. ABSTCPL’s forte of Integrated Annual Report. in Annexure II to this Report.

184 185 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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PARTICULARS OF EMPLOYEES All Independent Directors of your Company except Mr. Anant directors was divided into Executive, Non Executive and five years i.e., to hold office from the conclusion of the Fifty In accordance with the provisions of Section 197(12) of the Maheshwari have registered their name in the data bank Independent Directors and based on the parameters such as Eighth Annual General Meeting held in 2017 till the conclusion Companies Act,2013 “the Act”, read with the Companies maintained with the Indian Institute of Corporate Affairs. contribution, attendance, decision making, action oriented, of the Sixty third Annual General Meeting of the Company, to (Appointment and Remuneration of Managerial Personnel) Action is being taken to register the name of Mr. Anant external knowledge etc. be held in the Calendar year 2022. Rules, 2014, the names and other particulars of employees are Maheshwari. to be set out in the Directors’ Report, as an addendum thereto. Board members have evaluated Independent Directors, The observation made in the Auditor’s Report are self Appointment and remuneration of Directors and Key Non executive Directors, Executive Directors, Committee However, in line with the provisions of Section 136(1) of the explanatory and therefore, do not call for any further Managerial Personnel and Chairman of the Board. The result of evaluation was comments under Section 134(3)(f) of the Act. Act, the Report and Accounts as set out therein, are being The Nomination and Remuneration Committee has satisfactory and meets the requirements of the Company. sent to all Members of your Company excluding the aforesaid formulated the remuneration policy of your company which Board fully agreed and rated 100% on its functioning, skill sets Cost Auditors information about the employees. Any Member, who is is attached as Annexure IV to this Report. and working atmosphere. Independent Directors scored well In terms of the provisions of Section 148 of the Act read interested in obtaining these particulars about employees, on expressing their views and in understanding the Company with the Companies (Cost Records and Audit) Amendment may write to the Company Secretary at the Registered Office Our Executive pay aims to strike the appropriate balance and its requirements. Non-Executive Directors scored well Rules, 2014, the Board of Directors of your Company have of your Company. between key components: (i) Fixed Cash compensation (Basic in understanding the Company and its requirements and on the recommendation of the Audit Committee, appointed Salary + Allowances) (ii) Annual Incentive Plan (iii) Long-Term keep themselves current on the areas to be discussed. M/s. R. Nanabhoy & Co., Cost Accountants, Mumbai as Cost Disclosures pertaining to remuneration and other details Incentives (iv) Perks and Benefits. Executive Directors are action oriented and ensures timely Auditors, to conduct the cost audit of your Company for the as required under section 197(12) read with Companies implementation of the Board decisions. Board is completely financial year ending 31st March, 2022, at a remuneration (Appointment and Remuneration of Managerial Personnel) The Annual Incentive pay-outs to Executive Directors are tied satisfied with the functioning of various Committees. Board as mentioned in the Notice convening the Annual General Rules, 2014 are attached as Annexure III to this Report. to relevant financial and operational metrics achievement and has full faith in the Chairman in leading the Board effectively Meeting. As required under the Act, the remuneration their individual performance. The financial and operational and ensuring contribution from all its members. payable to the cost auditor is required to be placed before DIRECTORS metrics are annually aligned with priorities/ focus areas for the Members in a general meeting for their ratification. Board constitution and changes the business. Additionally, Sustainability Targets form part AUDIT COMMITTEE Accordingly, a resolution seeking Member’s ratification for Mr. Askaran Agarwala (DIN: 00023684) will retire from office of performance metrics for Annual Incentive Pay for the The Audit Committee comprises of Mr. K.N. Bhandari, the remuneration payable to Cost Auditors forms part of the by rotation at the ensuing Annual General Meeting, and being Managing Director. Independent Director, Mr. Vikas Balia, Independent Director Notice of the ensuing Annual General Meeting. eligible, offers himself for reappointment. and Mr. Y.P. Dandiwala, Independent Director. The remuneration of the Managing Director and the Whole Secretarial Auditors Mr. Satish Pai (DIN:06646758) is re- appointed as the time Director is in line with the policy of the Company and Mr. Satish Pai : Managing Director and Mr. Praveen Kumar Pursuant to provisions of Section 204 of the Companies Managing Director for a term of 3 years w.e.f. 1st August trend prevailing in the Corporate sector in the country. The Maheshwari: Chief Financial Officer and Whole-Time Director Act, 2013 read with the Companies (Appointment and 2021, subject to shareholder’s approval at the ensuing Annual dividend recommended to the equity shareholders( 300% are the permanent invitees. Further details relating to the Remuneration of Managerial Personnel) Rules, 2014, the General Meeting. for FY 21) is also in line with the performance and policy of Audit Committee are provided in the Corporate Governance Company has appointed BNP& Associates, Company the Company. The details of remuneration of the Managing Report forming part of the Integrated Annual Report. Secretaries, Mumbai as Secretarial Auditor for conducting Mr. Praveen Kumar Maheshwari (DIN:00174361) is re- and Whole Time Director with the median remuneration of the Secretarial Audit of your Company for the financial appointed as the Whole-time Director for a term of 1 Year employees are provided in detail in Annexure III to this Report. KEY MANAGERIAL PERSONNEL year ended 31st March, 2021. The Report of the Secretarial w.e.f. 28th May, 2021, subject to shareholders approval at the Further the details of remuneration received from subsidiary In terms of provisions of Section 203 of the Companies Auditors is annexed herewith as Annexure VA to the Annual Act,2013, Mr. Satish Pai: Managing Director, Mr. Praveen ensuing Annual General Meeting. He is also the Chief Financial company is also part of this report. Report. Officer of the Company. Kumar Maheshwari : Chief Financial Officer and Whole Time The Company shall recover the amount from the remuneration Director and Mr. Anil Malik: Company Secretary are the Key The Secretarial Audit Report does not contain any qualification, of Managing Director if required as per the relevant provisions Managerial Personnel of your Company. Brief resume of the Directors being re-appointed form part of reservation or adverse remark. of the Companies Act, 2013. the Notice of the ensuing Annual General Meeting. VIGIL MECHANISM As per Regulation 24A of the Listing Regulations, material Meetings of the Board Your Company has in place a vigil mechanism for directors The Board recommends, re-appointment of Mr. Askaran unlisted subsidiaries of a listed entity incorporated in India The Board of Directors of your Company met Six times and employees to report concerns about unethical behaviour, Agarwala, Mr. Satish Pai and Mr. Praveen Kumar Maheshwari. is required to annex a Secretarial Audit Report issued by a during the year, details of which are given in the Corporate actual or suspected fraud or violation of your Company’s Item seeking your approval is included in the Notice convening Governance Report forming part of the Integrated Annual Code of Conduct. Adequate safeguards are provided against Company Secretary in practice. In compliance with the above the Annual General Meeting. Report. victimisation to those who avail of the mechanism and direct requirement, the Secretarial Audit Report of Utkal Alumina access to the Chairman of the Audit Committee in exceptional International Limited, a material subsidiary of your Company, All the directors being appointed/reappointed have given Annual Evaluation cases is provided to them. is given in Annexure VB to the Annual Report. The Secretarial required declaration under Companies Act, 2013 and Listing Pursuant to the provisions of the Companies Act,2013 Audit Report do not contain any qualification, reservation or Regulations. and Listing Regulations, the Directors has carried annual The vigil mechanism is available on your Company’s website adverse remark. performance evaluation of Board, Independent Directors, viz. www.hindalco.com. Independent Directors Non Executive Directors, Executive Directors, Committee and ENVIRONMENT PROTECTION AND POLLUTION Independent Directors on your Company’s Board have Chairman of the Board. AUDITORS CONTROL submitted declarations of independence to the effect that Statutory Auditors Your Company is committed to sustainable development. A they meet the criteria of independence as provided in Section The evaluation framework focused on various aspects of the M/s. Price Waterhouse & Co. Chartered Accountants LLP detailed report of the Company’s initiatives and commitment 149(6) of the Companies Act, 2013 and Regulation 16(1)(b) of Board and Committees such as review, timely information (Registration No. 304026E/E-300009), are the Statutory to environment conservation is part of Integrated Annual the Listing Regulations. from management etc. Also, the performance of individual Auditors of the Company who are appointed for a period of Report.

186 187 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

DIRECTORS’ REPORT

PARTICULARS OF LOANS, GUARANTEES AND CONTRACTS AND ARRANGEMENTS WITH In accordance with the provisions of the section 129 (3) of • There were no frauds reported by the Auditors u/s 143(12) INVESTMENTS RELATED PARTIES the Act, read with the Companies (Accounts) Rules, 2014, a of the Companies Act,2013. Details of Loans, Guarantee and Investments covered under During the financial year, your Company entered into related report on the performance and financial position of each of • As per the requirement of the Sexual Harassment of the provisions of Section 186 of the Companies Act, 2013 read party transactions. There are no material transactions with any the subsidiaries, associates and Joint Venture is attached as Annexure VII to this Report. Women at the Workplace (Prevention, Prohibition with Companies (Meetings of Board and its Powers) Rules, related party as defined under Section 188 of the Act read with and Redressal) Act, 2013, your Company has complied 2014 are given in the notes to Financial Statements of the Companies (Meetings of Board and its Powers) Rules, 2014 and SEBI (Listing Obligations and Disclosures Requirement) The names of Companies which have become or ceased to be with provisions relating to the constitution of Internal Integrated Annual Report. Complaint Committee under POSH. Regulations,2015. The related party transactions have been subsidiaries, Joint Ventures and associates are also provided approved by the Audit Committee and Board of your Company in the aforesaid statement. CORPORATE SOCIAL RESPONSIBILITY • Directors of your Company hereby state and confirm as required under the Companies Act 2013 and SEBI (Listing In terms of the provisions of Section 135 of the Companies that the Company has complied with all the applicable Obligations and Disclosures Requirement) Regulations, 2015. OTHER DISCLOSURES Act, 2013 (“the Act”) read with Companies (Corporate Social • There were no material changes and commitments Secretarial Standards. Responsibility Policy) Rules, 2014 and any amended thereof The policy on Related Party Transactions as approved by affecting the financial position of your Company between the Board of Directors of your Company has constituted a • The cost accounts and records as required to be the Audit Committee and the Board is available on your end of financial year and the date of report. maintained under Section 148(1) of the Act are duly made Corporate Social Responsibility (“CSR”) Committee which Company’s website viz. www.hindalco.com . is chaired by Mrs. Rajashree Birla. The other Members of • Your Company has not issued any shares with differential and maintained by your Company. the Committee for the Financial year ending 31st March 2021 ANNUAL RETURN voting. APPRECIATION were Mr. Y.P. Dandiwala, Independent Director, Mr. A.K. In terms of the provisions of the Companies Act, 2013 Your Directors place on record their sincere appreciation Agarwala, Non Executive Director, Mr. Satish Pai: Managing (“the Act”) read with the Companies (Management and • There was no revision in the financial statements. for the assistance and guidance provided by the Honorable Director and Mr. D. Bhattacharya: Non Executive Director. Dr. Administration) Rules, 2014, the Annual Return of your • Your Company has not issued any sweat equity shares. Ministers, Secretaries and other officials of the Ministry Pragnya Ram, Group Executive President & Group Head - CSR, Company for the financial year ended 31st March, 2021 is of Mines, Ministry of Coal, the Ministry of Chemicals and Legacy Documentation & Archives is a permanent invitee to available on the website of the Company. • Mr. Satish Pai is a director on the Board of Novelis Inc, Fertilizers and various State Governments. Your Directors the Committee. thank the Financial Institutions and Banks associated with BUSINESS RESPONSIBILITY REPORT wholly owned subsidiary. He is in receipt of annual fee of US$ 1,50,000 in the calendar year 2021 . Mr. Praveen your Company for their support as well. As per Listing Regulations, a separate section of Business Your Company also has in place a CSR Policy and the same Kumar Maheshwari: Whole Time Director and Chief Responsibility Report forms part of Integrated Annual Report. is available on your Company’s website viz. www.hindalco. Financial Officer has not received any commission/ Your Company’s employees are instrumental in your Company com. The Committee recommends to the Board activities to Remuneration from your Company’s subsidiaries. scaling new heights, year after year. Their commitment and be undertaken during the year. INTERNAL CONTROL SYSTEM AND THEIR contribution is deeply acknowledged. ADEQUACY • There is no change in the nature of business. Your Company is a caring corporate citizen and lays significant Your Company has an Internal Control System, commensurate Your involvement as Shareholders is greatly valued. Your emphasis on development of the communities around which with the size, scale and complexity of its operations. The scope • During the year under review, your Company has not Directors look forward to your continuing support. and authority of the Internal Audit (IA) function is defined by it operates. Your Company has identified several projects accepted any fixed deposits from the public falling the Audit Committee. under Section 73 of the Act read with the Companies relating to Social Empowerment & Welfare, Infrastructure For and on behalf of the Board Development, Sustainable Livelihood, Health Care and (Acceptance of Deposits) Rules, 2014. Thus, as on March The Internal Audit Department monitors and evaluates Education during the year and initiated various activities 31, 2021, there were no deposits which were unpaid or the efficacy and adequacy of internal control system in the unclaimed and due for repayment. Satish Pai K.N. Bhandari in neighbouring villages around plant locations. During Company, its compliance with operating systems, accounting the financial Year 2020-21 the Company has spent ` 40.50 Managing Director Independent Director procedures and policies at all locations of the Company. • There are no significant and material orders passed by DIN:06646758 DIN: 00026078 Crores under Section 135 of the Companies Act, 2013 on CSR the regulators or courts or tribunals impacting the going Place: Mumbai activities, which is more than 2% of average net profits of the Based on the report of internal auditors, the process concern status and company’s operations in future. Dated: 2nd July, 2021 Company for last three financial years. owners undertake corrective action in their respective areas and thereby strengthen the controls. Significant audit The Annual Report on CSR activities is attached as Annexure observations and corrective actions thereon are presented VI to this Report. to the Audit Committee of the Board.

RISK MANAGEMENT INTERNAL FINANCIAL CONTROL Pursuant to the requirement of Listing Regulations, the Your directors confirm having laid down internal financial Company has constituted Risk Management Committee, controls and that such internal financial controls are adequate which is mandated to review the risk management plan/ and were operating effectively process of your company. SUBSIDIARY, JOINT VENTURES OR ASSOCIATE Risk evaluation and management is an ongoing process COMPANIES within the Organization. Your Company has comprehensive The financial statements of your Company’s subsidiaries and risk management policy which is periodically reviewed by the related information have been placed on the website of your Risk Management Committee. Company viz. www.hindalco.com.

188 189 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

ANNEXURE I ANNEXURE II

Dividend Distribution Policy Disclosure of particulars with respect to Conservation of Energy, Technology Absorption and Foreign Exchange Earnings and Outgo as prescribed under Rule 8(3) of the 1. Introduction 3. Factors to be Considered for Dividend Payout Companies (Accounts) Rules, 2014 1.1. As per the SEBI (Listing Obligations and Disclosure The Board will consider various internal and external Requirements) Regulations, 2015, as amended, the factors, including but not limited to the following before Company is required to formulate and disclose making any recommendation for dividends: A - Conservation of Energy i. Rationalization of motor, pump & fan capacities and its Dividend Distribution Policy. Accordingly, the replacement of inefficient pumps & motors with Board of Directors of the Company (‘the Board’) has • Free Cash Flow of the relevant year (as defined above) i) The steps taken on conservation of energy. high efficiency pumps & motors. approved this Dividend Distribution Policy for the a. Periodic Energy Audit conducted in all units as per Company at its meeting held on 13th February 2017 • Stability of earnings schedule. Amidst restriction but strictly following j. Energy efficient & corrosion resistant coating in as amended on 22nd February 2021. the covid protocol, audit could be completed at five pumps. • Future capital expenditure, inorganic growth plans locations during the year. 1.2. The objective of this policy is to provide clarity to and reinvestment opportunities k. Installation of VFD in variable load application. stakeholders on the dividend distribution framework b. During the year, M&V (monitoring & verification) to be adopted by the Company. The Board of • Industry outlook and stage of business cycle for audit, as part of BEE PAT (Perform, Achieve & Trade l. Compressed Air system efficiency improvement Directors shall recommend dividend in compliance underlying businesses scheme) Cycle-3, was conducted in one unit. Actual through replacement of inefficient compressors, with this policy, the provisions of the Companies savings achieved is higher than the target set by arresting leakages, process optimization etc. Act, 2013 and Rules made thereunder and other • Leverage profile and capital adequacy metrics BEE and ESCerts (Energy Savings Certificates) applicable legal provisions. recommended for issuance against the excess ii) The steps taken by the company for utilising • Overall economic and regulatory environment savings. alternate sources of energy. 2. Target Dividend Payout a. Additional 2.3 MWp Solar PV Power Plant was 2.1. Dividend will be declared for any financial year out of • Contingent liabilities c. Encouraging, facilitating and coaching young installed and commissioned during the year at the profits of the company for that year or out of the professionals for BEE Energy Manager/Auditor Alupuram, Kerala unit taking the Alupuram solar profits of the company for any previous financial year • Past dividend trends examination. During the year, a six-day in-house installed capacity to 3.45 MWp. Total installed or years arrived at after providing for depreciation training session was organized for candidates renewable capacity across units is 49 MW. and remaining undistributed, or out of both; • Buyback of shares or any such alternate profit appearing in the next BEE examination and there distribution measure were more than 100 participants. b. Additional 49 MWp Solar PV Power plant 2.2. The Board will endeavor to distribute a dividend in at five locations are under different phases the range of 8 % to 10% of the Free Cash Flow at • Any other contingency plans d. To keep the BEE certified internal Energy of implementation. There are delays due to Hindalco Consolidated Level (defined as Cash Flow Auditors engaged and also to identify additional Covid restrictions but we target to complete and after meeting interest, tax, other statutory dues, 4. Review improvement areas, a system for inter-plant energy commission all the planned projects by Mar’22. maintenance capital expenditure and working capital This policy would be subject to revision and amendment audit has been implemented. requirements at Hindalco Consolidated Level but on a periodic basis as may be necessary. c. We are actively pursuing a Renewable Hybrid with before considering strategic capital expenditure and e. During the year, Aditya Smelter unit was certified storage project for our Dahej unit in Gujarat. debt repayments/pre-payments) of the relevant year 5. Disclosure ISO 50001.With this, total five units are now ISO subject to compliances of the Companies Act 2013 This policy (as amended from time to time) will be 50001 certified. Additionally, stage-1 audit for d. Feasibility study has been initiated for additional and all other applicable Regulations. available on the company’s website and in the annual certification has been completed at Utkal Alumina Solar capacity including Floating solar option. report. (UAIL). e. We are also evaluating new and emerging f. Installing direct LNG fired Hot Air Generator to technologies on Energy storage, CCUS (carbon replace Steam & Electrical Heaters of the Spin Flash capture utilization & storage) Dryers (SFDs) in Refinery. iii) The capital investment on energy conservation Original date of Board Meeting where the Policy was approved 13th February, 2017 g. Reduction in Aluminium Smelter energy equipment and projects consumption through phased implementation of The Capital investment on Energy conservation Board Meeting approval date for this revised policy 22nd February, 2021. copper insert collector bar, clamp modification, Cast equipment & projects for the year was INR 186.6 crore iron sealing, Step stub Anode, pot noise control etc.

h. Power Plant efficiency improvement by improving Condenser Vacuum through improvised tube cleaning, TG overhauling, duct modification through CFD study etc.

190 191 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure II

B - Technology Absorption • Development of low soda alumina for US and Japan MT melting cum holding furnace with other utilities & Technology absorption at Utkal: Markets for different types of high end ceramic accessories. • New alternate flocculants introduced in High Rate i) Efforts made towards technology absorption applications. decanter (HRD). Plant trial was successfully conducted Mahan • Construction of Separate Engineering Station for Furnace in the HRD after set of laboratory trials. • Successful insertion of 90 Copper Insert Collector • Development of high purity alumina for high end and ICM. Bar Pots in FY 21 & total of 163 Copper Insert Pots ceramic applications • For enhancing cooling capacity in precipitation area in now operating in pot line. • Monolithic Lining in Furnace instead of Brick Lining to context of maintaining liquor productivity at design level • Development of hard calcined low soda alumina for increase the life and reduce Cost. with higher plant operating factor additional heat transfer • Replacement of conventional HPSV lights with LED metallized ceramics applications area was added in Plate Heat Exchangers (PHEs). The job lights in CPP and cast house area. • Precimeter Orientation in Launder for proper workability was taken up in phased manner and additional plates • Development of bimodal hydrates for unsaturated of Operators. were added in all PHE’s. • HPSV light replaced with LED lights in Cast House. polyester resin applications • LPG preheating of Launder system to increase life of • Software installed for Process data historian and • Reduction in compressed air consumption of Smelter • Development of specialty hydrates for EN45545/HL preheating system of Launders. Monitoring. by polymeric composites of railways • Developing the Alloy program in Spectro (Lab), CRM’s for • Machine learning software installed for Critical equipment * Use of air intensifier • Development of different types of coated hydrates calibration of the Spectro for alloy analysis. health monitoring. for various polymeric applications. * Arresting leakages by using UV leakage detector. • Redesign of Stacking Robo and labelling Robo operation • Centralized Lubrication System Installed in Pan Filters to The developmental and experimental works implemented philosophy of Casting Machine to reduce the Axis improve the reliability of the system. * Solenoid mounted valve to stop air usage during at Renukoot: Movement and for the Ease of Maintenance. equipment stoppages. • Installation of new milling machine to meet the face • Precipitation tank thickness monitoring done by using polishing requirement of button samples of furnaces and • Installation of CCTV Cameras with backup of videos to robot crawler technology. • VFD installation for controlling water flow in billet smelter samples as per ASTM requirement. monitor line operations. casting units. • Utkal achieved lowest energy consumption at 7.7 GJ/t • Developed a special component In-house with suitable • Programing for Multiple size Stacks of 500 kg and 1000 through various energy conservation initiatives, which is • Auto Water Level Control of Hot Water Tank in CT-1 design for fitting with Zwick Tensile m/c 250 KN for kg to suit customer requirement. among the best in the world for identical technology in by doing two no’s of the running Pump no.3 &4 on/ successful testing of the product supplied to auto industry. Alumina Refinery. off in Auto. • Installation of safety light curtains across entire ICM line. • Implementation of calculating procedure of Gage R&R Technical Absorption efforts in Birla Copper: • Auto Control of Mold temperature by doing Auto value for showing long term stability of equipment and • Installation of LED Lights in Shop Floor to reduce energy. • Improve heat recovery in the So2 off gas heat recovery ON/OFF of Mold Heater . results. boiler in flash smelter by inhouse R&D. • Installation and commissioning of the Flue wall • Frequency limit of VFD’s for Exhaust Blower in MHFs • Experimental job was done for the fluoride destruction in Maintenance platform in Bake ovens • Implemented process data historian and analytical as per bed temperature requirement for burners in effluent water by Bauxite Residue. systems in the smelter,refinery and Rod plant. MHF No.-8 Technological absorption at Hirakud: • Experiment job was done for Aluminium removal in Cooled • Installation of new 100MVA power transformer with ii) The benefits derived like product improvement, cost • Motion sensor/Limit switch installation at PLC room, Condensate water by Coagulant. “Nitrogen Injection Fire Prevention System , Vacuum OLTC reduction, product development or import substitution: shift room, thermistor room to save power during and Self Dehydrating Breather. Mahan idle hours. • New Method developed for analysis of Al2O3 in poly Aluminium chloride. • Replacement of 4 nos. high energy consuming Boiler Feed • Increase in current efficiency and reduction in the DC • Frequency limit in VFD’s for Combustion Blower in Pumps with energy efficient pumps. energy consumption per MT due to the copper insert Melting holding furnace (MHF) as per Maximum flow • New Method development for chemical oxygen demand collector pots. requirement for burners in MHF No.-5. analysis. • Installation of Variable Frequency drives in Condensate Extraction pumps. • Production of High purity Aluminium P0303 & P0404 • New in line filtration system installed at Billet casting • New Method developed for analyzing Sulphate in water Sows. for lowering the metal temperature at start of the by calorimetric analysis • Power Plant efficiency improvement by adding Economiser casting coils in Two Boilers. • New in line filtration system installed at Billet casting Technology absorption at Aditya Smelter: provide savings in furnace oil and also reduce rejection Specific Areas in which R&D has been carried out at • Successful insertion of 77 copper insert collector bar pots • Power Factor improvement through capacitor bank percentage. Belagavi HIC: in potline in FY21 & total of 123 pots Copper Insert Pots installation in Coal Handling Plant. • Detailed processability studies with presently now operating in pot line. • CFF Filter size change provides better filtration efficiency available bauxites to find out the process conditions • Installation of Thermal Digital Twin in 100 MW unit. at high speed operation and production of different grade for using these in Bayer process in an efficient way. • Installation and commissioning of the Alloy Ingot machine of Wire rods. and all allied systems. The facility includes an Alloy • Development of high brightness hydrate through ingot casting machine (15 TPH capacity) along with 45 Bayer process.

192 193 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure II

• Improved process control resulting in better quality of • Better safety as there is no need for the employee to reach iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial Products. all parts of the tank to measure the thickness. year)

• Reduction in compressed air consumption and improved Birla Copper: energy efficiency. Technology imported for Year of Has technology If not fully absorbed areas where this has not • Heat recovery from So2 Off has help in debottlenecking import been fully taken place reason thereof and future plant of of boiler limitation for flash smelter operation. absorbed action Belagavi: • Improvement of plant process efficiency and consistency • Improved process control and advanced diagnosis for At Aditya Aluminium Ingot casting machine to 2019 Yes completed in the quality of Bayer hydrate. process optimization has been achieved. manufacture A356.2 (Scope includes casting demoulding, packaging) Packaging 2 Nos of ABB • Increase in sales realization in value added products, Import Substitution : Robos part of the line . leading to the improvement in business profitability. • Developed alternate supplier of TC Rolls for WRM At Aditya Aluminium Degasser for metal Quality 2019 Yes completed finishing mill. Reduction of Hydrogen inclusions-STAS CFF • Enhancement of customer satisfaction. -Befessa Spain • Locally developed Entry guide shaft in Roughing Mill • Increase in market share in preferred applications and At Aditya Aluminium TAC (Treatment of metal in 2019 Installation OEM experts visited Site during March 21. However entering into new market segments. Stand line and Switching table vertical roller assembly crucibles) Reduction of Alkalis in Molten Metal partially due to critical Covid scenario in India due to pandemic in WRM line as an alternative from OEM completed it was partially completed. Once the Covid situation • Development of environmental friendly products, leading stabilizes OEM experts will be called upon for to a more sustainable business. • Bushing 16 x 30 x 38 x 032 of ICM line earlier supplied by completion. OEM now developed in house. At Aditya Aluminium EMS (Electro Magnetic stirrer 2019 Yes completed Renukoot: for homogenous mixing of metal ) • Enhancement of quality reliability in Physical & Mechanical • Transfer conveyor shaft of ICM supplied by OEM now Testing of materials. developed in house. R&D expenses Incurred : • Increased accuracy of analysis and savings in cost and • Bushing for ICM zero hammer supplied by OEM now time due to new methods development. developed in house. The Company has spent ` 23 crore for Research and Development during the Financial Year 2020-2021. Aditya: • Layer conveyor chain earlier supplied by OEM now by • Increase in current efficiency and reduction in the DC local vendor. Foreign Exchange earnings & Out Go. energy consumption per MT due to the copper insert collector pots. • Wear resistant plate of used in ICM supplied by OEM replaced with by local vendor . a) Activities related to exports. Exports (FOB) during the year were ` 13,860 crore. • Alloy ingot A356.2 could be produced by alloy ingot casting machine as per the market demand & increase in • Chain casting conveyor, ICM earlier supplied by OEM now b) Total Foreign Exchange used and earned. customer base. developed through other vendor (1) Foreign Exchange used ` 23,123 crore. • Elimination of fall from height risk and improve overall • Furnace tending vehicle de drossing and hot cleaning tool life of the refractory in Bake oven. developed indigenously. (2) Foreign Exchange Earned ` 13,860 crore.

Hirakud: • 12 mm dia wire rod for super enameled strips as an import • Significant gains on energy efficiency and power plant substitute. performance. • Development of girth gear of turn table in the Insulated • Digital twins helped in predicting process behaviour and boom lift from local supplier, against import from OEM ensure that the operations and maintenance processes are optimised. • Ceramic launder dam developed locally for ICM launders.

Utkal: • Rectifier DM Water expansion tank and valve developed • Improved process control and alternate vendor will from Indian vendor. provide cost saving. • DG battery charger spares of EPL developed from new • Improved equipment reliability due to health monitoring vendor and repaired battery charger avoiding replacement of equipment. of total battery charger.

• Improved energy efficiency and liquor productivity at • Develop indigenous supplier for cathode mother blanks alumina refinery. in eletro- refining plant at Birla copper.

194 195 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

ANNEXURE III ANNEXURE IV

Details pertaining to remuneration as required under Section 197(12) of the Companies Act, 2013 read with Hindalco Industries Limited (“the Company’) an Aditya Birla Group Company adopts/shall adopt this Executive Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 Remuneration Philosophy/Policy as applicable across Group Companies. This philosophy/ policy is detailed below. i. The percentage increase in remuneration of each Director, Chief Financial Officer and Company Secretary during the Financial year 2020-21, ratio of the remuneration of each Director to the median remuneration of the employees of the Aditya Birla Group: Executive Remuneration bring to the table, the executive pay practices and pay Company for the Financial year 2020-21 are as under: Philosophy/Policy levels in other markets and industries, to appreciate the differences in levels and medium of pay and build in as Sr. Name of Director/ Remuneration* of Director/ % increase in Remuneration Ratio of remuneration of appropriate for decision making. No. KMP and Designation KMP for financial year 2020-21 in the Financial Year 2020-21 each Director/to median At the Aditya Birla Group, we expect our executive team to (` in Lakhs) remuneration of employees foster a culture of growth and entrepreneurial risk-taking. IV. Executive Pay Positioning 1 Kumar Mangalam Birla - Not applicable - Our Executive Remuneration Philosophy/Policy supports the design of programs that align executive rewards – including We aim to provide competitive remuneration opportunities 2 Rajashree Birla 298.15 173.16% 46.51 incentive programs, retirement benefit programs, promotion to our executives by positioning target total remuneration 3 A.K. Agarwala 33.94 171.96% 5.29 and advancement opportunities – with the long-term success (including perks and benefits, annual incentive pay-outs, 4 Vikas Balia 47.28 363.98% 7.38 of our stakeholders. long term incentive pay-outs at target performance) 5 Y.P. Dandiwala 50.25 127.99% 7.84 and target total cash compensation (including annual 6 K.N. Bhandari 53.94 156.25% 8.41 Our business and organizational model incentive pay-outs) at target performance directionally 7 Alka Bharucha 34.82 340.20% 5.43 between median and top quartile of the primary talent 8 Ram Charan** 4.58 18.35% 0.71 Our Group is a conglomerate and organized in a manner market. We recognize the size and scope of the role and 9 D. Bhattacharya^ 30.56 168.31% 4.77 such that there is sharing of resources and infrastructure. This the market standing, skills and experience of incumbents 10 Sudhir Mital 27.82 ***1334.02% 4.34 results in uniformity of business processes and systems thereby while positioning our executives. promoting synergies and exemplary customer experiences. 11 Anant Maheshwari** 18.66 ** 2.91 We use secondary market data only as a reference point 12 Satish Pai 2463.16 (22.81%) 384.27 I. Objectives of the Executive Remuneration Program for determining the types and amount of remuneration 13 Praveen Kumar 378.75 (39.54%) 59.09 Our executive remuneration program is designed to while principally believing that target total remuneration Maheshwari attract, retain, and reward talented executives who will packages should reflect the typical cost of comparable 14 Anil Malik 124.26 (12.89%) 19.39 contribute to our long-term success and thereby build executive talent available in the sector. ^ Additionally, at the time of retirement, Board had approved pension of ` 0.335 crore per month and other post value for our shareholders. employment benefits for his past service when he was the Managing Director of the Company. The present value of V. Executive Pay-Mix the above pension liability determined based on the actuarial valuation is accounted by the Company in its financial Our executive remuneration program is intended to: Our executive pay-mix aims to strike the appropriate statements. Amount charged as expenses in the statement of profit and loss during the year amounting to` 3 crores 1. Provide for monetary and non-monetary remuneration balance between key components: (i) Fixed Cash has been disclosed as a part of managerial remuneration and doesn’t include impact of actuarial losses recognised elements to our executives on a holistic basis compensation (Basic Salary + Allowances) (ii) Annual in other comprehensive income amounting to ` 1 crore. Incentive Plan (iii) Long-Term Incentives (iv) Perks and * Remuneration includes commission payable to Non-Executive Directors for the year ended March 31, 2021 which is 2. Emphasize “Pay for Performance” by aligning Benefits subject to the approval of the members of the Company. Sitting fees paid to Directors is excluded. incentives with business strategies to reward ** Mr. Ram Charan (DIN: 03464530) has resigned as Independent Director w.e.f. 14th August, 2020 and Mr. Anant executives who achieve or exceed Group, business Annual Incentive Plan: Maheshwari (DIN: 02963839) was appointed as Independent Director w.e.f. 14th August, 2020. and individual goals. We tie annual incentive plan pay-outs of our executives *** Remuneration paid to Mr. Sudhir Mital during 2019-20 was on pro-rata basis and not comparable. to relevant financial and operational metrics achievement II. Covered Executives and their individual performance. We annually align the i The median remuneration of employees of the Company during the financial year was` 6.41 Lacs. Our Executive Remuneration Philosophy/Policy applies financial and operational metrics with priorities/ focus ii In the financial year, there was an increase of 4.57% in the median remuneration of employees. to the following: areas for the business. iii There were 20,971 permanent employees on the rolls of Company as on 31st March, 2021. iv Average percentage increase made in the salaries of employees other than the managerial personnel in the last 1. Directors of the Company Long-Term Incentive: financial year i.e. 2020-21 was 4.53 % whereas the decrease in the managerial remuneration for the same financial year Our Long-term incentive plans incentivize stretch was 25.55%. For the purpose of managerial personnel, Managing Director and Whole time Director are considered. 2. Key Managerial Personnel: Chief Executive Officer performance, link executive remuneration to sustained v It is hereby affirmed that the remuneration paid is as per the Remuneration Philosophy / Policy of the Company. and equivalent (eg: Deputy Managing Director), Chief long term growth and act as a retention and reward tool. Financial Officer and Company Secretary. vi Remuneration excludes amortization of fair value of employee share based payments under IndAs 102 and provision We use stock options as the primary long-term incentive for gratuity and leave encashment recognised on the basis of actuarial valuation as separate figures are not available. 3. Senior Management : As decided by the Board vehicles for our executives as we believe that they best vii During the current Financial Year, Mr. Praveen Kumar Maheshwari has been granted 29,779 Stock Options. align executive incentives with stockholder interests. III. Business and Talent Competitors For and on behalf of the Board We benchmark our executive pay practices and levels We grant restricted stock units as a secondary long term against peer companies in similar industries, geographies incentive vehicles, to motivate and retain our executives. Satish Pai K.N. Bhandari and of similar size. In addition, we look at secondary Managing Director Independent Director reference (internal and external) benchmarks in order to VI. Performance Goal Setting DIN:06646758 DIN: 00026078 ensure that pay policies and levels across the Group are We aim to ensure that for both annual incentive plans and Place : Mumbai broadly equitable and support the Group’s global mobility long term incentive plans, the target performance goals Dated : 2nd July, 2021 objectives for executive talent. Secondary reference points shall be achievable and realistic.

196 197 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure IV ANNEXURE VA

Threshold performance (the point at which incentive plans of compelling business need or competitive rationale and Form No. MR-3 are paid out at their minimum, but non-zero, level) shall generally do not provide for any tax gross-ups for our SECRETARIAL AUDIT REPORT reflect a base-line level of performance, reflecting an executives. FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2021 estimated 90% probability of achievement. Risk and Compliance [Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule no. 9 of the Companies Target performance is the expected level of performance We aim to ensure that the Group’s remuneration programs (Appointment and Remuneration of Managerial Personnel) Rules, 2014] at the beginning of the performance cycle, taking into do not encourage excessive risk taking. We review our account all known relevant facts likely to impact measured remuneration programs for factors such as, remuneration mix To (a) The Securities and Exchange Board of India performance. overly weighted towards annual incentives, uncapped pay-outs, The Members (Substantial Acquisition of Shares and Takeovers) unreasonable goals or thresholds, steep pay-out cliffs at certain Hindalco Industries Limited Regulations, 2011; Maximum performance (the point at which the maximum performance levels that may encourage short-term decisions Ahura Centre, 1st Floor, plan payout is made) shall be based on an exceptional to meet pay-out thresholds. B Wing Mahakali Caves Road, (b) The Securities and Exchange Board of India level of achievement, reflecting no more than an Mumbai - 400093 (Prohibition of Insider Trading) Regulations, 2015; estimated 10% probability of achievement. Claw back Clause: (c) The Securities and Exchange Board of India (Share In an incident of restatement of financial statements, due We have conducted the Secretarial Audit of the compliance Based Employee Benefits) Regulations, 2014; VII. Executive Benefits and Perquisites to fraud or non-compliance with any requirement of the of applicable statutory provisions and the adherence to good corporate practices by HINDALCO INDUSTRIES LIMITED Our executives are eligible to participate in our broad- Companies Act 2013 and the rules made thereafter, we shall (d) The Securities and Exchange Board of India having CIN No. L27020MH1958PLC011238 (hereinafter called based retirement, health and welfare, and other employee recover from our executives, the remuneration received (Registrars to an Issue and Share Transfer Agents) benefit plans. In addition to these broad-based plans, in excess, of what would be payable to him / her as per the ‘Company’) for the audit period covering the financial year st Regulations, 1993; and they are eligible for perquisites and benefits plans restatement of financial statements, pertaining to the relevant ended on 31 March 2021 (the ‘audit period’). Secretarial Audit commensurate with their roles. These benefits are performance year. was conducted in a manner that provided us a reasonable basis (e) The Securities and Exchange Board of India designed to encourage long-term careers with the Group. for evaluating the corporate conducts/statutory compliances (Listing Obligations and Disclosure Requirements) Implementation and expressing our opinion thereon. Regulations, 2015; Other Remuneration Elements The Group and Business Centre of Expertise teams will assist Based on our verification of the Company’s books, papers, Each of our executives is subject to an employment agreement. the Nomination & Remuneration Committee in adopting, (f) The Securities and Exchange Board of India (Issue minute books, forms and returns filed, soft copy as provided Each such agreement generally provides for a total remuneration interpreting and implementing the Executive Remuneration and Listing of Debt Securities) Regulations, 2008. by the company and other records maintained by the Company package for our executives including continuity of service Philosophy/Policy. These services will be established through and also the information provided by the Company, its across the Group Companies. “arm’s length”, agreements entered into as needs arise in the (vi) Other laws specifically applicable to the Company are: officers, agents and authorized representatives during the normal course of business. conduct of Secretarial Audit; We hereby report that in our (a) The Mines Act, 1952; and We limit other remuneration elements, for e.g. Change in opinion, the Company has, during the audit period complied Control (CIC) agreements, severance agreements, to instances with the statutory provisions listed hereunder and also that (b) The Mines and Minerals (Regulation and the Company has proper Board-processes and compliance- Development) Act, 1957. mechanism in place to the extent, in the manner and subject We have also examined compliance with the applicable clauses to the reporting made hereinafter. of the Secretarial Standards issued by the Institute of Company We have examined the books, papers, minute books, forms Secretaries of India during the audit period; and returns filed and other records maintained by the Company During the audit period, the Company has complied with for the financial year ended on 31st March, 2021 according to the provisions of the Acts, Rules, Regulations and Bye-laws the provisions of: mentioned above. (i) The Companies Act, 2013 (the ‘Act’) and the Rules made During the period under review, provisions of the following thereunder; regulations were not applicable to the Company: (ii) The Securities Contracts (Regulation) Act, 1956 and the (i) The Securities and Exchange Board of India (Delisting of Rules made thereunder; Equity Shares) Regulations, 2009; (iii) The Depositories Act, 1996 and the Regulations and Bye- (ii) The Securities and Exchange Board of India (Buyback of laws framed thereunder; Securities) Regulations, 1998; and (iv) Foreign Exchange Management Act, 1999 and the Rules (iii) The Securities and Exchange Board of India (Issue of and Regulations made thereunder to the extent of Capital and Disclosure Requirements) Regulations, 2009; Overseas Direct Investment and External Commercial Borrowings. (iv) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of (v) The following Regulations and Guidelines prescribed Foreign Direct Investment. under the Securities and Exchange Board of India Act, 1992;

198 199 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure VA

We further report that – We further report that there are adequate systems and Annexure A processes in the Company commensurate with the size and The Board of Directors of the Company is duly constituted with operations of the Company to monitor and ensure compliance To, that the processes and practices we followed, provides a proper balance of Executive Directors, Non-Executive Directors with applicable laws, rules, regulations and guidelines. and Independent Directors as on 31st March 2021 as under: The Members, reasonable basis for our opinion for the purpose of issue Hindalco Industries Limited of the Secretarial Audit Report. We further report that during the audit period, following I. Two Executive Directors; specific event / action has occurred during the year: Secretarial Audit Report of even date is to be read along with 4. We have not verified the correctness and appropriateness II. Six Non- Executive Independent Directors; and 1. During the audit period, the Company has allotted its this letter. of financial records and Books of Accounts of the Company. equity shares under Employee Stock Option Schemes, as III. Four Non- Executive Non -Independent Directors 1. The compliance of provisions of all laws, rules, regulations, follows: standards applicable to Hindalco Industries Limited (the 5. Wherever required, we have obtained the management During the year the following changes in the composition of ‘Company’) is the responsibility of the management of the representation about the compliance of laws, rules and the Board of Directors were carried out in compliance with the i. First Quarter from 1st April, 2020 to 30th June, 2020 Company. Our examination was limited to the verification regulations and major events during the audit period. provisions of the Act, Rules made thereunder and SEBI (LODR) – 61,859 equity shares of ` 1 each. of records and procedures on test check basis for the Regulations: ii. Second Quarter from 1st July, 2020 to 30th September, purpose of issue of the Secretarial Audit Report. 6. The Secretarial Audit Report is neither an assurance as to I. Re- appointment of Mr. D. Bhattacharya (DIN: 00033553), 2020 – 68,035 equity shares of ` 1/- each. the future viability of the Company nor of the efficacy or as a Director, Retired by Rotation and re- appointed in 2. Maintenance of secretarial and other records of effectiveness with which the management has conducted the 61st Annual General Meeting held on 10th September, iii. Third Quarter from 1st October, 2020 to 31st applicable laws is the responsibility of the management the affairs of the Company. 2020 December, 2020 – 2,30,357 equity shares of ` 1/- of the Company. Our responsibility is to issue Secretarial each. Audit Report, based on the audit of the relevant records II. Re- appointment of Mr. Y. P. Dandiwala (DIN: 01055000), maintained and furnished to us by the Company, along For BNP & Associates as an Independent Director, at the 61st Annual General iv. Fourth Quarter from 1st January, 2021 to 31st March, with explanations where so required. Company Secretaries Meeting held on 10th September, 2020 2021 – 1,01,309 equity shares of ` 1/- each. [Firm Regn. No. P2014MH037400] 3. We have followed the audit practices and processes as III. Appointment of Mr. Sudhir Mital (DIN: 008314675), as an 2. Board of Directors in their meeting on 10th November, were appropriate to obtain reasonable assurance about Independent Director in the 61st Annual General Meeting 2020, approved to subscribe 99,994 (Ninety Nine the correctness of the contents of the secretarial and held on 10th September, 2020 Thousand Nine Hundred and Ninety Four) Equity Shares other legal records, legal compliance mechanism and B. Narasimhan in the Section 8 Company. corporate conduct. The verification was done on test FCS : 1303 IV. Appointment of Mr. Anant Maheshwari (DIN: 02963839) check basis to ensure that correct facts as reflected in Place: Mumbai ACS : 10440 as an Independent Director in the 61st Annual General 3. Board of Directors in their meeting on 07th December, secretarial and other records produced to us. We believe Date: 21.05.2021 UDIN: F001303C000351400 Meeting held on 10th September, 2020. 2020, had approved the setting up of the Company’s Extrusion facility for a capacity of 34 KTPA at Silvassa V. Resignation of Mr. Ram Charan (DIN : 03464530) as an by making an investment of an amount not exceeding Independent Director, w.e.f. 14th August, 2020. ` 7,30,00,00,000/- (Rupees Seven hundred thirty crore Adequate notice is given to all directors to schedule the Board only) Meetings, agenda and detailed notes on agenda were sent at least 7 (seven) days in advance except for one Board Meeting For BNP & Associates where consent for shorter notice was obtained from majority of Company Secretaries the directors. System exists for seeking and obtaining further [Firm Regn. No. P2014MH037400] information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. B. Narasimhan Decisions at the meetings of the Board of Directors of the Company were carried through on the basis of majority. There FCS : 1303 were no dissenting views by any member of the Board of Place: Mumbai ACS : 10440 Directors during the audit period. Date: 21.05.2021 UDIN: F001303C000351400

Note: This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.

200 201 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

ANNEXURE VB

FORM NO. - MR-3 SECRETARIAL AUDIT REPORT For the financial year ended 31st March 2021 i. Re-appointment of Mr. Surya Kanta Mishra as a Director conversion of Rupee Loan into fully paid up Equity (DIN: 02544268), Retired by Rotation and re- appointed in Shares of the Company either the whole or part of [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No.9 of the Companies the 27th Annual General Meeting held on 25th September, outstanding under facility agreement aggregating up to (Appointment and Remuneration of Managerial Personnel) Rules, 2014] 2020 ` 15,00,00,00,000, by passing a Special Resolution at their Extra-Ordinary General Meeting held on November ii. Re-appointment of Dr. Pragnya Ram as a Director (DIN: To, ii. The Depositories Act, 1996 and the Regulations and Bye- 30, 2020 as per the terms and conditions contained in 00832233), Retired by Rotation and re- appointed in the The Members laws framed thereunder; the Facility Agreement executed between the Company 27th Annual General Meeting held on 25th September, Utkal Alumina International Limited and State Bank of India (‘Lender’) for availing a Rupee J 6 Jayadev Vihar Bhubaneswar 751013. iii. Foreign Exchange Management Act, 1999 and the rules 2020 Term Loan aggregating up to ` 15,00,00,00,000. and regulations made thereunder to the extent of Foreign We have conducted the Secretarial Audit of the compliance Direct Investment, Overseas Direct Investment and iii. Appointment of Mr. Praveen Kumar Maheshwari (DIN: • Pursuant to an agreement between the Company of applicable statutory provisions and the adherence to good External Commercial borrowings; 00174361) as an Additional Director with effect from and Orissa Mining Corporation Limited (‘OMCL’), the st corporate practices by Utkal Alumina International Limited October 31 2019 in the 27th Annual General Meeting held Company has agreed to issue 15% Fully Convertible having CIN No. U13203OR1993PLC003416 (hereinafter called iv. The following Regulations and Guidelines prescribed on 25th September, 2020 Cumulative Preference Shares amounting to ` 20 crores the ‘Company’) for the audit period covering the financial year under the Securities and Exchange Board of India Act, with face value of ` 10 each, at par in consideration for iv. Appointment of Mr. Anil Arya (DIN: 03310125) as an ended on 31st March 2021 (the ‘audit period’). Secretarial Audit 1992 (‘SEBI Act’): transfer of license, mining leases and all rights thereto, Additional Director with effect from January 30th 2020 in was conducted in a manner that provided us a reasonable basis rendering of related technical services etc. by OMCL. The a. The Securities and Exchange Board of India the 27th Annual General Meeting held on 25th September, for evaluating the corporate conducts statutory compliances Company has decided to issue Unsecured, Redeemable (Substantial Acquisition of Shares and Takeovers) 2020 and expressing our opinion thereon. Non-Convertible Debentures in lieu of the Preference Regulations, 2011; shares to OMCL. In terms of Debenture Subscription Adequate notice is given to all directors to schedule the Board Based on our verification of the Company’s books, papers, Agreement entered into between the Company and b. The Securities and Exchange Board of India (Issue of Meetings, agenda and detailed notes on agenda were sent at minute books, forms and returns filed and other records OMCL, the Board of Directors of the Company has Capital and Disclosure Requirements) Regulations, least seven days in advance and where the same were given at maintained by the Company and also the information passed a resolution at it’s meeting held on August 2009; shorter notice than 7 (seven) days, proper consent thereof were provided by the Company, its officers, agents and authorized 07, 2020, approving the issuance of one zero coupon obtained and a system exists for seeking and obtaining further representatives during the conduct of Secretarial Audit; We Unsecured Redeemable Non- Convertible Debentures of c. The Securities and Exchange Board of India information and clarifications on the agenda items before the hereby report that in our opinion, the Company has, during ` 3 Crores in favour of the Odisha Mining Corporation (Registrars to an Issue and Share Transfer Agents) meeting and for meaningful participation at the meeting. the audit period complied with the statutory provisions listed Regulations, 1993; Limited and subsequently, the Company has allotted hereunder and also that the Company has proper Board- Decisions at the meetings of the Board of Directors of the the One Zero Coupon Unsecured Redeemable Non- processes and compliance-mechanism in place to the extent, d. The Securities and Exchange Board of India (Share ` Company were carried through on the basis of majority. There Convertible Debentures of 3 Crores, in favour of the in the manner and subject to the reporting made hereinafter. Based Employee Benefits) Regulations, 2014; were no dissenting views by any member of the Board of Odisha Mining Corporation Limited, on 21st September 2020. We have examined the books, papers, minute books, forms e. The Securities and Exchange Board of India (Delisting Directors during the audit period. and returns filed and other records maintained by the Company of Equity Shares) Regulations, 2009; We further report that there are adequate systems and for the financial year ended on 31st March 2021 according to processes in the Company commensurate with the size and the provisions of The Companies Act, 2013 (‘the Act’) and the f. The Securities and Exchange Board of India (Buyback Rules made thereunder; of Securities) Regulation, 1998. operations of the Company to monitor and ensure compliance For BNP & Associates with applicable laws, rules, regulations and guidelines. Company Secretaries We have also examined compliance with the applicable clauses g. The Securities and Exchange Board of India (Issue [Firm Regn. No. P2014MH037400] of the Secretarial Standards issued by the Institute of Company and Listing of Debt Securities) Regulations, 2008; We further report that during the audit period, except the [PR No.:-637 / 2019] Secretaries of India during the audit period and and following, there were no specific event/action having major bearing on the company’s affairs pursuance to the laws, rules, The Securities and Exchange Board of India (Prohibition of h. The Securities and Exchange Board of India regulations, guidelines, standards, etc. as referred above : Venkataraman Krishnan Insider Trading) Regulations, 2015, to the extent applicable. (Listing Obligations and Disclosure Requirements) Associate Partner Regulations, 2015. • Approval of the Shareholders of the Company, under Date: May 22, 2021 ACS No.:-8897/ COP No.:- 12459 During the audit period, the Company has complied with section 62(3) of the Companies Act 2013 for the Place: Mumbai UDIN:- A008897C000359027 the provisions of the Acts, Rules, Regulations and Bye-laws We further report that - mentioned above. The Board of Directors of the Company is duly constituted with During the audit period, provisions of the following Act/ proper balance of Non-Executive Directors. Note: This report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this Regulations were not applicable to the Company: During the year, the following changes in the composition of report. i. The Securities Contracts (Regulation) Act, 1956 and the the Board of Directors were carried out in compliance with the Rules made thereunder except relating to transfer of provisions of the Act, Rules made thereunder: securities;

202 203 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure VB SOCIAL REPORT

Annexure A “India’s COVID case load has been the highest. We are all collectively struggling to stem this extremely challenging, and huge calamity. The Government, NGOs, corporates and other key stakeholders, have coalesced to bring COVID To, that the processes and practices we followed, provides a The Members, reasonable basis for our opinion for the purpose of issue relief measures. Even at the cost of being repetitive, let us acknowledge our nation’s doctors, medical and paramedical Utkal Alumina International Limited of the Secretarial Audit Report. workers. They have and continue, to go beyond the line of duty, to bring succor to the COVID afflicted. Our population and the size of our country is beyond comparison. Enormous challenges confront us. We can overcome them with a Secretarial Audit Report of even date is to be read along 4. We have not verified the correctness and appropriateness strong sense of solidarity. with this letter. of financial records and Books of Accounts of the Company. I would like to apprise you of the various initiatives we have taken through multiple channels. I will focus on the relief 1. The compliance of provisions of all laws, rules, regulations, standards applicable to Utkal Alumina International 5. Wherever required, we have obtained the management measures executed by us at FICCI Aditya Birla CSR Centre for Excellence, we took cognizance, of the immediate needs Limited (the ‘Company’) is the responsibility of the representation about the compliance of laws, rules and that were COVID driven. First and foremost, was the need to address the problem of getting food for the marginalized. management of the Company. Our examination was regulations and major events during the audit period. We worked with ISKON, and distributed cooked meals, for lunch and supper in Delhi, Mumbai, and Noida. We reached limited to the verification of records and procedures on out to thousands of families. Likewise, we distributed ration kits, in partnership with Goonj, to thousands of families test check basis for the purpose of issue of the Secretarial 6. The Secretarial Audit Report is neither an assurance as to Audit Report. the future viability of the Company nor of the efficacy or in 11 states. We arranged for 90,000 PPE kits, for frontline health workers in six states. COVID-19 is also a livelihood effectiveness with which the management has conducted disaster. More so for the informal sector workers, migrants, small land holding farmers, returnee migrants, villages 2. Maintenance of secretarial and other records of the affairs of the Company. youths and tribal women. So, with the Nudge Foundation, we launched a 3-year project, themed on “Creating Resilient applicable laws is the responsibility of the management Communities” in Odisha, West Bengal, Delhi NCR, Uttar Pradesh, Jharkhand, Karnataka and Maharashtra. We have of the Company. Our responsibility is to issue Secretarial Audit Report, based on the audit of the relevant records impacted 4 lakh families.

maintained and furnished to us by the Company, along For BNP & Associates with explanations where so required. If you recall we had already shared with you the immediate COVID steps taken after the outbreak of the pandemic. Company Secretaries Besides contributing over Rs.500 crore, we tried to address related issues at every level. Here is an update: [Firm Regn. No. P2014MH037400] 3. We have followed the audit practices and processes as [PR No.:-637 / 2019] were appropriate to obtain reasonable assurance about • Providing 3,000 jumbo oxygen cylinders pan India the correctness of the contents of the secretarial and other legal records, legal compliance mechanism and Venkataraman Krishnan • We have ordered 10 oxygen Pressure Swing Adsorption plants. Of these, three PSA plants have been delivered corporate conduct. The verification was done on test Associate Partner (Gujarat and eastern UP). These plants produce 100 litres of oxygen every 60 seconds and are integral to meet the check basis to ensure that correct facts as reflected in Date: May 22, 2021 ACS No.:-8897/ COP No.:- 12459 oxygen shortage. secretarial and other records produced to us. We believe Place: Mumbai UDIN:- A008897C000359027 • 1,000 oxygen concentrators supplied by Novelis

• 750 concentrators based on the Hub & Spoke model have been instituted in the major state’s capitals, which then pan out to the smaller towns

• 500 oxygen concentrators supplied to various hospitals and communities across locations

• 300 oxygen cylinders refilled by Hindalco and supplied to hospitals in UP daily, after reviving the defunct Karahiya oxygen plant in Anpara, Sonebhadra

• In addition, liquid oxygen plants are on stream across the nation at our plant sites. To give you a feel, the Birla Copper Plant in Dahej, has been supplying ~ 50 tonnes of liquid oxygen day in and day out to bridge the gap. Up until now 1,600 tonnes of liquid oxygen has been supplied to the Gujarat Government

• Furthermore, specially designed 40 mobile ambulances are in service all over the country

• More than 500 beds have been earmarked across locations

• Proactive engagements with local communities, and other stakeholders, is an ongoing activity

• More than a million triple layer surgical masks, have been distributed, along with tens of thousands of personal protective equipments

204 205 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

SOCIAL REPORT

A summary of our wok: SDG-3: Ensuring, healthy lives and promoting well-being • Hundreds of ventilators have also been given SDG-1: To rid poverty across all nations by 2030 for all, in all age groups • To reinforce COVID prevention messages, such as using mask, social distancing, and sanitizing, are unending This has been our unrelenting battle for decades. We are More than 7 lakh people across our units, have been the engaged in 10 states where our CSR work has made a difference. beneficiaries of our healthcare projects through more than Your Company has contributed significantly to this humongous effort supporting - oxygen concentrators, PSA The percentage of BPL families has dropped significantly. 2,000 healthcare camps. plants, liquid oxygen and more. A gist of Hindalco’s endeavours apart from the initiatives cited above: SDG-2: To end all forms of hunger and malnutrition by 2030 Through the GPS based ambulance service facility ‘Jeevan Mitra Sewa Yojana’ 15 ambulances are engaged, touching • Over 3,000 COVID patients treated at our hospitals and health centers in the second wave We have a holistic developmental model that addresses this a 5000 strong populace. Alongside we tend to patients at issue. Sustainable agriculture, supporting particularly small- • Dedicated medical team of 77 doctors and 275 paramedics for COVID care our company’s two hospitals and 17 dispensaries, besides scale farmers with access to land, technology and markets supporting 9 Government/Charity run primary health centers. are our major themes. We leverage Government Schemes • Over 450 hospital beds equipped with ICUs, ventilators, bipaps and oxygen concentrators and the services rendered by the District Authorities, including Among other healthcare projects include eye camps, dental Collectors and Block Development Officers. We have made checkups and tuberculosis and general health counselling. Our • PSA oxygen plants being set up in Utkal and Renukoot reasonable progress. Nevertheless, we have had to reset our touch points are in excess of 10,000 families. target, extending it to 5% (3%) in the next 5 years. • Oxygen plant donated to district hospital in Sonebhadra We would like to add that in partnership with the District Health Department, our 26 Family Welfare Centers served Water positivity • RT-PCR testing lab for communities around the Utkal plant. 30,951 women (antenatal, post-natal care, mass immunization, Water positivity is one of the most important tasks before nutrition and escort services for institutional delivery). Over • CT-Scan facility to come up in Utkal hospital, a Level-1 District Covid care facility us. Water conservation, and water harvesting structures 1,75,723 children were immunized against polio, BCG, DPT and are our mainstay. Water is the lifeline for agriculture. Farm- Hepatitis-B across the Company’s Units. • Hospital at Renukoot certified as Level-2 Covid hospital supporting the community based interventions, farmer training programmes, farmer Towards adolescent healthcare we covered, 1,200 girls at 51 producer groups, improved agriculture techniques, and camps organized at Government Girls High Schools. • 30 Quarantine centres set up animal husbandry management, take us close to the goal of sustainable agriculture. Up until now we have constructed 83 SDG-4: Education • 59 Ambulances towards COVID relief services check dams,118 ponds conserving 2,23,847 m3 of water. Along with lift and drip irrigation facilities impacted over 50,000 Our close involvement with the Kasturba Gandhi Balika • Supporting migrant workers and the needy with cooked food, rations, sanitizers and masks farmers (Renukoot, Singrauli and Lohardaga). Nearly a 100 Vidyalayas has motivated over a 1000-girls to pursue formal farmer clubs are functional at your Company. Towards better education. Consequent to the extended lockdowns, our ground level activities in the 610 villages which service over a million ecology, we developed 100 vermin compost tanks to provide Our ‘meet the parent’ counselling programmes have not only people were constrained. Still good work is done. The spotlight continues to be on education, healthcare, sustainable manure and encourage organic farming (Renukoot, Singrauli helped dropouts come back to school but have significantly livelihood, infrastructure development and social reform, in sync with the major UN SDG goals. and Lohardaga). cut out the dropout rate to zero levels (15%). Towards better irrigation, we built 8 check dams, serviced 11 existing ones, excavated 16 ponds (Renukoot, Singrauli, To enhance the learning outcome of students, up until now we Mrs. Rajashree Birla Lohardaga and Renusagar). Consequently, farmers moved to have set up 5 science laboratories at Government high schools Chairperson, cultivate cash crops, spanning 900 hectares of agricultural land, (Mahan, Hirakud and Garepalma). Aditya Birla Centre for Community Initiatives and Rural Development and reap a rich harvest. Over 83 students from the villages attended the 6-month Chairperson, Hindalco CSR Board Micro-horticulture cultivation across 450 acres of land is on computer literacy programmes (Renukoot and Renusagar). the anvil. NABARD, Krishi Vigyan Kendras, the Agriculture and Nearly 800 children are enrolled at 15 anganwadis that we Horticulture wings of the Government will be our knowledge support (Renusagar, Taloja, Mahan and Belagavi). Under the partners. Janmitram (an NGO) has been enlisted as the project Integrated Child Development Scheme (ICDS) we have reached implementation agency. out to 64 malnourished children and helped nurture them into Our veterinary camps this year serviced a little over 40,000 healthy children. cattle owners. As many as 20,000 cattle were immunized At our 9 Aditya Birla Public Schools (Renukoot, Renusagar and in veterinary camps. Of these 600 cattle were artificially Muri), we have 4,848 rural students. Additionally, 1,319 students inseminated. It has helped enhance the income of the farmers are enrolled at the 7 Aditya Birla Vidya Mandirs (Renukoot, as the milk outcome notched up by 70%. In this regard, the Lohardaga, Kathautia and Samri). We also support 3,593 Aditya Birla Technology Park in Muirpur (Uttar Pradesh), students of 4 other schools (Lohardaga and Dumri). marches on with its endeavours towards training and income enhancement. Its pursuit to raise the earnings of the farmers To meet the shortage of teachers in the rural areas in continues. Its benefits have a salutary effect on the lives of government primary and secondary schools (Dumri, Lohardaga 200 farm families. and Samri), we have sponsored 27 teachers.

206 207 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

SOCIAL REPORT ANNEXURE VI

We have built 3 school buildings (Belagavi and Taloja) and capacity building, 15 additional programmes were held, repaired 13 school buildings (Renukoot, Renusagar and registering 722 participants. Our veterinary services were Belagavi). At several schools, sanitation facilities were availed by 2,629 farmers. ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES constructed and drinking water facilities were set up (Nitale 1. Brief Outline on CSR Policy of the Company: Manpada Primary school, Taloja). SDG-9: Build resilient infrastructure Our infrastructure projects: connectivity, road repairs, For every Company in the Aditya Birla Group, reaching out to underserved communities is a part of our DNA. We believe SDG-5: Women empowerment and gender equality community halls and assets, rest places, installation of solar in the trusteeship concept. This entails transcending business interest and grappling with the “quality of life” challenges that underserved communities face, and working towards making a meaningful differences to them. Our 2000 self-help groups comprising of 24,860 women lights, construction of water tanks and installation of piped enthusiasts have all been transformed into competent and water supply, have bettered the lives of 83,430 people. Our vision is – “to actively contribute to the social and economic development of the underserved communities, lifting the confident women, engaged in meaningful work that earns Finally, on Model Villages. Of the 611 villages in our CSR burden of poverty and helping bring in inclusive growth, in so doing build a better, sustainable way of life for the weaker them a livelihood. projects, 102 villages have been earmarked for a transformative sections of society and raise the countriy’s human development index”, (Mrs. Rajashree Birla, Chairperson, Aditya Birla Centre for Community Initiatives and Rural development) A special mention must be made of the “Kosala Livelihood process. Up until now, 35 villages have made the cut. Impact assessment studies by external agencies have certified and Social Foundation”, a not-for-profit company. This 2. Composition of CSR Committee: subsidiary of Hindalco has been spawned to mentor women commended the transformation of these villages. in the art of making textiles including sarees from Kosa silk. Sl Name of Director Designation / Nature of Directorship Number of meetings Number of meetings of CSR No of CSR committee held Committee attended during More importantly, reviving the ancient Kosa silk art form of Accolades/Awards received: during the year the year Chhattisgarh. The project is housed at Gare Palma and currently The output of our commitment to CSR is assuring. Evident from encompasses 35 women from the villages surrounding our the several accolades conferred upon us. A gist: 1 Smt. Rajashree Birla Chairperson/Non-Executive Director 1 1 mines. There is a lot of excitement around the Gera Palma 2 Mr. Y.P. Dandiwala Member/Independent Director 1 1 Utkal Alumina project. The women reelers who produce the yarn from cocoon 3 Mr. Satish Pai Member/Managing Director 1 1 and the weavers involved in the intricate weaving process - “Golden Peacock Award for Corporate Social Responsibility based on specified designs now feel self-assured in the sense - 2020” for “Project WADI” 4 Mr. A.K. Agarwala Member/Non-Executive Director 1 1 of long-term sustainability. - “CSR Times Award - 2020” for Project Samriddhi 5 Mr. D. Bhattacharya Member/Non-Executive Director 1 1 It might interest you to learn that the first set of sarees (commercial vegetable farming) by First Step Foundation, Dr. Pragnya Ram : Group Executive President, CSR, Legacy Documentation & Archives is the permanent invitee to the committee. and fabric material produced by them evoked encouraging Delhi 3. Provide the web link where composition of CSR Committee, CSR policy and CSR projects approved by the Board response. During Diwali and New Year, despite the pandemic Aditya Aluminium are disclosed on the website of the Company the Kosala project revenue was nearly ` 30 lakhs, generating a lot of hope and optimism. - Fame India’s Fame Excellence Platinum Award 2020 for http://www.hindalco.com/sustainability/corporate-social-responsibility Excellence in Best Practices to Fight Against COVID 19 The sixth, seventh and eighth SDGs, center on water and - India CSR Award under the category of women 4. Provide the details of Impact Assessment of CSR Projects carried out in pursuance of sub rule (3) of rule 8 of sanitation, reliable, sustainable, modern energy, decent empowerment. Companies (Corporate Social Responsibility Policy) Rules 2014 if applicable: work and economic growth. Mahan Aluminium No Impact study has been carried out in this Financial Year Towards providing accessibility to safe drinking water, up - CSR TIMES, Editor’s Choice Awards 2020, for project until now we have installed 27 Reverse Osmosis (RO) plants. 5. Details of the Amount available for set off in pursuance of sub rule (3) of rule 7 of Companies (Corporate Social GYAAN This year we put up 5 RO plants, 24 handpumps, repaired 245 Responsibility Policy) Rules 2014 and amount required for set off for financial year if any handpumps and dug wells. Pipelines and borewells provide - “CII National Award for Excellence in Water Management” access to water, benefiting more than 76,000 villagers. in the Category “Beyond the fence”. Sl Financial Year Amount available for set off from Amount required to be set off for the No preceding financial year (In Cr) financial year if any (In Cr) Additionally, 1,652 individual toilets and sanitation facilities Lohardaga Mines Division 1 were set-up and facilitated at various locations. Consequently, Not applicable - “Fame Excellence Award 2020-21” for project “Utthan – A 2 95% of the villages where we operate have been declared ODF. livelihood project Imparting vocational training, skills training, coupled with our farm / non-farm-based programmes and SHGs, meet with Our CSR spends 6. Average Net Profit of the Company as per Section 135(5) these goals. Collectively we have touched the lives of nearly This year we spent ` 53.99 crore (Hindalco ` 40.50 crore, ` 1344.36 Crore 3,541 people. Subsidiaries ` 13.49 crore). We have facilitated mobilisation 7. (a) Two percent of average net profit of the Company as per Section 135(5) At the Aditya Birla Rural Technology Park (ABRTP), Muirpur of contributions of ` 83.66 crores from Government agencies and Aditya Birla Skill Centre (ABSC), Dhanupali more than 14 directly to certain schemes/projects. ` 26.89 Crore training batches were organised. The thrust continues to be on We have come this far because of the unflinching support of our computer literacy, training in repair of electric and electronic Chairman, our Board of Directors, our Management, leadership (b) Surplus arising out of CSR projects or programs or activities of previous financial years goods, handicrafts, bag making, beautician, tailoring and teams, our CSR people and each and every colleague from Nil knitting, ways to enhance agricultural output, and veterinary Hindalco. All of them are a source of constant stimulation to science. This year 149 aspirants were trained. At ABRTP on aim even higher.

208 209 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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(c ) Amount required to be set off for the financial years, if any 1 2 3 4 5 6 7 8 Nil Sr Name of the Item from the Local Area Location of the Project Amount spent Mode of Mode of Implementation No Project list of activities (Yes/No) for the project Implemen- -Through Implementing (d) Total CSR Obligation for the financial year (7a + 7b + 7c) in Schedule VII to (` In Lakhs) tation Direct Agency ` 26.89 Crore the Act (Yes/No)

8. (a) CSR Amount Spent or Unspent for the financial year State District Name CSR Registration Total Amount Spent for Amount Unspent (In `) Number the Financial Year Total Amount transferred to Unspent Amount transferred to any fund specified under 4 Vocational Employment Kathautia, Jharkhand, Palamu, Raigarh, 59.00 YES NA NA ` ( in Lakhs) CSR Account as per section 135(6). Schedule VII as per second proviso to section 135(5). and Technical Enhancement Garepalma, Chhattisgarh, MP Singrauli Amt Date of Transfer Name of the Fund Amount Date of Transfer Education Vocational Skills Mahan 4050.44 NA NA NA NA NA 5 School Promoting Belagavi, Muri, Karnataka, Belagavi, Ranchi, 140.85 YES NA NA Infrastructure Education Taloja, Mahan, Jharkhand, Taloja, Singrauli, Renukoot, Maharashtra, Sonbhadra, Raigarh (b) Details of CSR amount spent against ongoing projects for the financial year: Hirakud, MP, UP, 1 2 3 4 5 6 7 8 9 10 11 Garepalma Chhattisgarh Sl Name Item from Local Area Location of the Project Amount Amount Amount Mode of Mode of Implementation - 6 Preventive health Health Care Belur, Renukoot, West Bengal, Hazaribagh, 1206.91 YES NA NA No of the the list of (Yes/No) Project Duration allocated for Spent in the Transferred to Implementation Through Implementing Kathautia, Dumri, UP, Jharkhand, Sonbhadra, Palamu, Project activities in the project Current FY Unspent CSR Direct Agency Chakla Jharkhand, Hazaribagh,Latehar Schedule (In `) (In `) account for the (Yes/No) Jharkhand VII to the project as per 7 Curative Health Health care Belur, Renukoot, West Bengal, Hazaribagh, 172.55 YES NA NA Act Section 135(6) Care program Kathautia, Dumri, UP, Jharkhand, Sonbhadra, Palamu, (In `) Chakla Jharkhand, Hazaribagh,Latehar State District Name CSR Jharkhand Registration 8 Reproductive and Health care Renukoot, UP, MP, Sonbhadra, 41.53 YES NA NA Number Child Health Mahan, Jharkhand, Singrauli, Palamu, Nil Kathautia, Dumri Jharkhand Hazaribagh 9 Quality / Support Health care Renukoot, MP, UP Singrauli, Sonbhadra 44.23 YES NA NA Program Mahan (c ) Details of CSR amount spent against other than ongoing projects for the financial year: 10 Health Health care Belagavi, Karnataka, Belagavi, Ernakulam, 650.68 YES NA NA 1 2 3 4 5 6 7 8 Infrastructure Alupuram, Kerala, MP, UP Singrauli, Sonbhadra Sr Name of the Item from the Local Area Location of the Project Amount spent Mode of Mode of Implementation Renukoot, No Project list of activities (Yes/No) for the project Implemen- -Through Implementing Mahan in Schedule VII to (` In Lakhs) tation Direct Agency 11 Agriculture and Ensuring Taloja, Renukoot, Maharashtra, Taloja, Sonbhadra, 85.26 YES NA NA the Act (Yes/No) Farm Based Environment Aditya, Mahan, UP, Odisha, MP, Sambalpur, State District Name CSR Garepalma Chhattisgarh Singrauli, Raigarh Registration 12 Animal Animal Welfare Renukoot, UP, Nagpur Sonbhadra, 8.55 YES NA NA Number Husbandary Mouda Maharashtra 1 Pre school Promoting Dumri, Mahan, Jharkhand, Hazaribagh, 25.10 YES NA NA Based education Education Renukoot, Belur, MP, UP, WB, Singrauli, 13 Non farm & Skills Enhancing Dumri, Mahan, Jharkhand, Hazaribagh, 54.35 YES NA NA Belagavi Karnataka Sonbhadra, Howrah, Based Income Vocational skills Renukoot, Singrauli, UP, Singrauli, Sonbhadra Belagavi generation and Livelihood Belagavi Karnataka 2 School Education Promoting Muri, Renukoot, Jharkhand, UP, Ranchi, Sonbhadra , 1054.01 YES NA NA Program Enhancement Program Education Mouda Maharashtra Nagpur 14 Natural Resource Environment Garepalma, Chhattisgarh, Raigarh, Singrauli, 75.14 YES NA NA 3 Education support Promoting Belagavi, Karnataka, Belagavi, Ernakulam, 31.82 YES NA NA conservation sustainability Mahan, MP, UP, Sonbhadra, Belagavi programs Education Alupuram, Kerala, UP, Sonbhadra, programs & Non Renukoot, Karnataka Renukoot, Odisha, MP, Sambalpur,Singrauli, conventional Belagavi Aditya, Mahan, Jharkhand Palamu Energy Kathautia 15 Livelihood Livelihood Mahan, MP, UP Singrauli, Sonbhadra 27.65 YES NA NA Infrastructure Enhancement Renukoot

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1 2 3 4 5 6 7 8 (g) Excess Amount for Set off if any:

Sr Name of the Item from the Local Area Location of the Project Amount spent Mode of Mode of Implementation Sl Particular ` In Lakhs No Project list of activities (Yes/No) for the project Implemen- -Through Implementing No in Schedule VII to (` In Lakhs) tation Direct Agency the Act (Yes/No) (i) Two percent of Average Net Profit of the Company as per Section 135(5) 2688.73 State District Name CSR (ii) Total Amount spent for the financial year 4050.44 Registration (iii) Excess Amount Spent for Financial Year [ii-i] 1361.71 Number (iv) Surplus arising out of the CSR Projects or programs or activities of the previous financial years, NIL 16 Institutional Empowering Mahan, MP, UP Singrauli, Sonbhadra 19.53 YES NA NA if any building & women Renukoot (v) Amount available for set-off in succeeding financial Year [iii-iv] 1361.71 strengthening 17 Support to Support to old Alupuram, Aditya Kerala, Odisha Ernakulam, 24.78 YES NA NA 9. (a) Details of Unspent CSR Amount for the preceding three Financial Years: development age homes and Sambalpur, organizations orphanages Sl Preceding Amount Amount spent Amount Transferred to any fund specified in Amount remaining No Financial Year Transferred to in Reporting Schedule VII as per Section 135(6) if any to be spent in 18 Social Security Measures for Mahan, Mauda, MP, Nagpur, Singrauli, 28.58 YES NA NA Unspent CSR Financial Year succeeding financial socially and Renukoot, UP, Jharkhand, Maharashtra, Account under (In `) Name of the Amt in ` Date of years (In `) economically Kathautia, Dumri Jharkhand Sonbhadra, Palamu, Section 135(6) Fund Transfer backward groups Hazaribagh 19 Awareness Measures Mauda, Nagpur, UP, Maharashtra, 6.04 YES NA NA NA programmes for reducing Renukoot, Jharkhand Sonbhadra, Palamu inequalities Kathautia (b) Details of CSR Amount Spent in the financial year for ongoing projects of the preceding financial year(s): 20 Social Events to Promote Durgmanwadi, Maharashtra, Kolhapur, Belagavi, 24.84 YES NA NA minimise causes Gender equality Belagavi, Taloja, Karnataka, Taloja, Singrauli, 1 2 3 4 5 6 7 8 9 of poverty and reducing Renukoot, Maharashtra, Sonbhadra Sl Project ID Name of the Financial Year Project Total Amount Amount spent Cumulative Amount Status of the inequalities Mahan, MP, UP No Project in which the Duration allocated for on the Project Spent at the end of Project Completed/ 21 Promotion of Promotion of Mahan, Aditya, MP, Odisha, UP Singrauli, 17.44 YES NA NA project was the Project in the Reporting Reporting Financial Ongoing heritage/culture/ Heritage Renukoot Sambalpur, commenced (In `) Financial Year Year Sports Sonbhadra (In `) (In `) 22 Disaster Relief Disaster Relief CFD, Mahan MP Singrauli 5.74 YES NA NA Programmes NA 23 Rural Rural Muri, Renukoot, Jharkhand, MP, Ranchi, Sonbhadra, 123.32 YES NA NA Infrastructure development Mahan, UP, Chhattisgarh Singrauli, Raigarh 10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through Development Garepalma CSR spent in the Financial Year Total (In lakhs) 3927.90 (Asset-wise details)

(d) Amount Spent in Administrative Overheads Date of creation or Amount of CSR Details of the entity or public Provide details of the capital acquisition of the spent for creation or authority or beneficiary under asset(s) created or acquired ` 122.54 lakhs capital asset (s) acquisition of capital whose name such capital asset is (including complete address and asset (`) registered, their address etc. location of the capital asset) (e) Amount Spent on Impact Assessment, if applicable 04/09/2020 7,16,992 Eloor Municipality Office, Ambulance Nil Udyogamandal, P O Eloor, Kochi - 683501 (f) Total Amount Spent for the financial year (8b + 8c + 8d + 8e) 29/08/2020 30,316 The Medical Officer, Air Conditioner (1.5 Ton) ` 4050.44 Lakhs including Administrative Overheads Community Health Centre, Keredari, Hazaribag, Jharkhand 825311

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Date of creation or Amount of CSR Details of the entity or public Provide details of the capital Date of creation or Amount of CSR Details of the entity or public Provide details of the capital acquisition of the spent for creation or authority or beneficiary under asset(s) created or acquired acquisition of the spent for creation or authority or beneficiary under asset(s) created or acquired capital asset (s) acquisition of capital whose name such capital asset is (including complete address and capital asset (s) acquisition of capital whose name such capital asset is (including complete address and asset (`) registered, their address etc. location of the capital asset) asset (`) registered, their address etc. location of the capital asset) 31/03/2021 2,21,321 Saraswati Sishu Mandir School, Construction of Boundary and 31/08/2020 Kanai, Near Govt. Middle School, R & R Colony, Majhigawan, maintenance Work Gram: Kanei, Post: Daga Bargawan, Post: Pokhara, Tehsil: Deosar, Tehsil: Deosar, Dist. Singrauli, Dist: Singrauli, Madhya Pradesh, Madhya Pradesh, Pin: 486886 Pin: 486892 31/08/2020 Bhalugadh, Near Orphanage, 02/07/2020 Gidher Inside Gidher Tower on Installation of Hand Pump Gram: Bhalugadh, Post: Gondwali, Durghata Devi Road, Gram: Gidher, Tehsil: Chitrangi, Dist. Singrauli, Post: Odgadi, Tehsil: Deosar, Madhya Pradesh, Pin: 486892 Dist. Singrauli, Madhya Pradesh, Pin: 486886 02/07/2020 Barhwatola, Near Govt. Rice Mill, Gram: barahwatola, Post: Daga 31/03/2021 Majhigawan, Badokhar Bypass Road, Bargawan, Tehsil: Deosar, Gram: Majhigawan, Post: Pokhara, Dist. Singrauli, Madhya Pradesh, Tehsil: Deosar, Dist. Singrauli Pin: 486886 Madhya Pradesh, Pin: 486892 31/08/2020 Ghinhagawn, Near Pokhara 02/07/2020 Odgadi, Kashidol Tola , Panchayat Bhawan, gram: Ghinhagao, Gram: Odgadi, Post: Odgadi, Post: Pateri, Tehsil: Deosar, Tehsil: Deosar, Dist. Singrauli, Dist. Singrauli, Madhya Pradesh, Madhya Pradesh, Pin: 486886 Pin: 486892 02/07/2020 Jobgadh, Near Khekra Playground, 31/08/2020 Pokhra, Near Hasua Mod Tiraha, Gram: Jobgadh, Post: Bargawan, Gram: Pokhara, Post: Pokhra, Tehsil: Deosar, Dist. Singrauli, Tehsil: Deosar, Dist. Singrauli, Madhya Pradesh, Pin: 486886 Madhya Pradesh, Pin: 486892 31/08/2020 Baghadih, Near Betahadand Road, 31/08/2020 20,51,978 Dharsada, Near Middle School, Gram: Dharsada, Post: Pateri, Gram: Baghadih, Post: Odgadi, Tehsil: Chitrangi, Dist. Singrauli, Tehsil: Deosar, Dist. Singrauli, Madhya Pradesh, Pin: 486892 Madhya Pradesh, Pin: 486899 02/07/2020 Badokhar, Near Badokhar 02/07/2020 Sajhar, Jogni, Gram: Sajhar, Chauraha(Bhalugadh Road), Post: Chanduwar, Tehsil: Deosar, Gram: Badokhar, Post: Daga Dist. Singrauli, Madhya Pradesh, Bargawan, Tehsil: Deosar, Pin: 486881 Dist. Singrauli, Madhya Pradesh, Pin: 486886 31/03/2021 Badokhar, Near Badokhar Chauraha Construction of Water Harvesting (Bhalugadh Road), Pits 02/07/2020 Bareniya, Near Hindalco Gate No Gram: Badokhar, Post: Daga 4, Gram: Bareniya, Post: Daga Bargawan, Tehsil: Deosar, Bargawan, Tehsil: Deosar, Dist. Singrauli, Madhya Pradesh, Dist. Singrauli, Madhya Pradesh, Pin: 486886 Pin: 486886 31/08/2020 Bargawan, Near Boys Hostel 31/03/2021 Odgadi, Kashidol Tola , Gram: (Aadiwasi), Gram: Bargawan, 1,46,000 Odgadi, Post: Odgadi, Tehsil: Deosar, Post: Daga, Tehsil: Deosar, Dist. Singrauli, Madhya Pradesh, Dist. Singrauli, Madhya Pradesh, Pin: 486886 Pin: 486886 31/03/2021 Barhwatola, Near Govt. Rice Mill, 31/08/2020 Daga, Near Bargawan Railway Gram: barahwatola, Post: Daga Colony , Gram: Daga, Post: Daga Bargawan, Tehsil: Deosar, Bargawan, Tehsil: Deosar, Dist. Singrauli, Madhya Pradesh, Dist. Singrauli, Madhya Pradesh, Pin: 486886 Pin: 486886

214 215 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

Annexure VI 74 74 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Date of creation or Amount of CSR Details of the entity or public Provide details of the capital 97.18 % of Share Share acquisition of the spent for creation or authority or beneficiary under asset(s) created or acquired Holding ------capital asset (s) acquisition of capital whose name such capital asset is (including complete address and asset (`) registered, their address etc. location of the capital asset) Dividend Proposed Proposed ------1.69 2.72 11.37 5.46 0.20 0.56 28/01/2021 Jobgadh, Near Khekra Playground, Construction of Check Dams 4.46 16.96 84.41 (0.61) (0.01) (0.01) (7.39) 46.53 (0.08) 125.94 162.50 345.43 605.47 1,206.36 Tax . Tax Gram: Jobgadh, Post: Bargawan, after

Tehsil: Deosar, Dist. Singrauli, Profit/(Loss) Madhya Pradesh, Pin: 486886 ------(0.15) (0.02) (21.45)

11,29,436 (159.24) Gain/ Figures INR in Crore & FC in Million INR in Crore Figures

28/01/2021 Baghadih, Near Betahadand Road, Loss from Operations Discontinued Discontinued

Gram: Baghadih, Post: Odgadi, ------1.19 1.16 0.51 3.79 0.73 4.76 2.54 0.34 0.26 0.62 0.09 19.29

Tehsil: Deosar, Dist. Singrauli, 35.33 143.18 (0.96) Madhya Pradesh, Pin: 486899 339.72 for Tax for Provision Provision

02/07/2020 75,760 PHC Hospital, Bargawan, Construction of Platform and - - - - 2.31 1.38 11.71 3.45 5.62 5.55 0.82 17.47 (0.61) (0.01) (0.01) 188.71 (8.36) 86.95 65.84 (0.08) 129.72 945.19 Tehsil: Deosar, Dist. Singrauli, Miscellaneous Expenditure 488.76 1,400.93

Madhya Pradesh, Pin: 486886 Tax before Profit/(Loss) Profit/(Loss) ------0.16 4.10 2.72 3.46 28/12/2020 36,580 Rural Hospital, Mouda RO Filter at CMO 5.89 41.53 40.52 89.60 491.95 2,935.35 3,652.05 Distt. : Nagpur (M. H.) 4,026.64 29,892.34 Revenues Pin : 441104 Turnover/ 1.24 9.82 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 73.28 20.37 31/03/2021 9,15,000 Nitalemanpada Construction of Anganwadi 74.39 146.24 Post Wavanje 1,967.16 Others Shares, Shares, Bonds & Debnture, Debnture, Panvel Dist – Raigad Investments - - -

Maharashtra - 410208 1.22 0.01 4.29 8.20 8.68 0.59 0.88 0.65 6.40 0.04 0.00 0.00 0.00 51.35 20.31 (0.14) (0.01) (0.02) 3,441.14 11,524.11 5,163.43 1,575.44 Total Total 37,769.72 Liabilities

11. Specify the reason(s), if the company has failed to spend two percent of the average net profit as per Section 135(5) - - - 0.01 0.10 31.13 0.09 18.73 133.11 38.15 79.55 156.17 58.88 40.25 106.48 294.39 430.70 1,592.30 1,563.66 2,663.63 11,432.67 11,437.96 4,470.63 Not applicable 11,647.45 19,484.07 Total 32,702.00 Assets 7.61 9.72 10.77 31.76 (0.01) (0.01) 74.75 (0.46) (0.04) (0.00) (0.00) 146.27 (82.98) (491.81) (125.97) (921.42) (148.52) 1,563.66 1,740.05 (607.02) (692.84) 11,437.94 (1,086.38) (5,068.01) (3,597.49)

Mr. Satish Pai Mrs. Rajashree Birla Reserves - - 0.01 0.10 0.10 0.01 9.25 0.29 9.90 4.80 0.05 0.04 (Managing Director) (Chairperson, CSR Committee) 0.00 29.93 88.56 50.00 183.97 897.12 122.64 1,345.71 6,251.48 1,740.84 1,580.00 11,557.45 (DIN:06646758) (DIN:00022995) 12,733.97 Capital Place : Mumbai Dated : 19.05.2021 INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR USD USD USD USD USD USD USD currency Reporting USA USA India India India India India India India India India India India Canada Canada Canada Canada Country Netherlands Name of the Subsidiary Company {} Limited and Minerals Minerals {} and Finance Limited Renuka Investments {} and Finance Limted Investsment Renukeshwar {} Holding Limited Suvas {} Limited Utkal Alumina International {} Limited Hindalco-Almex Aerospace {} Limited Finance Company Lucknow {} Limited Dahej Harbour and Infrastructure {} Mining Co.Pvt.Ltd. Bauxite East Coast Foundation@ Utkal Alumina Social Welfare and Social Foundation Livelihood Kosala * ( Netherlands) N.V. A V Minerals Inc. #* A V Metals Inc. ##* Novelis 4260848 Canada Inc.* 4260856 Canada Inc.* South America Holdings LLC* Novelis Corporation* Novelis Sr. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 ANNEXURE VII ANNEXURE 2021 Sec.129(3) ENDED 31ST MARCH YEAR FOR THE COMPANIES SUBSIDIARY TO RELATING INFORMATION FINANCIAL

216 217 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 % of % of Share Share Share Holding Holding ------Dividend Dividend Proposed Proposed Proposed ------7.10 0.14 7.57 7.36 5.32 2.28 0.38 2.50 21.16 0.02 0.04 51.59 34.14 61.48 59.22 29.07 (5.70) 29.46 (5.28) 311.20 (0.53) (4.62) (0.07) (6.89) (4.03) 60.94 (0.80) (0.00) (0.00) 218.72 215.78 (19.23) 183.24 295.61 (38.77) 797.48 283.93 (42.28) (34.86) (40.03) (142.72) (287.82) 1,265.76 1,740.02 Tax . Tax . Tax after after (16,494.71) 120,830.00 Profit/(Loss) Profit/(Loss) ------Gain/ Gain/ Loss from Loss from Loss from Operations Operations Discontinued Discontinued Discontinued ------1.61 2.13 1.75 1.95 1.60 2.97 0.31 1.55 8.59 0.25 0.99 0.10 0.09 0.40 0.88 (1.53) 15.59 0.04 14.48 (0.18) (0.14) 97.68 12.48 (0.71) (9.38) 511.24 281.41 (0.02) 107.07 281.24 (0.08) 702.79 (12.65) (69.60) (109.55) 42,638.00 for Tax for Tax for Provision Provision Provision ------2.13 9.13 3.88 6.92 8.51 4.25 0.25 31.41 0.14 7.20 7.40 67.18 0.02 34.14 (5.19) 29.07 (3.63) 381.61 (5.30) (6.89) (4.20) (0.68) (0.09) (0.80) 73.42 73.69 62.36 215.78 (39.31) 59.54 295.61 (0.34) 418.26 (31.44) (48.15) (0.04) (0.00) (0.00) 233.20 (19.23) (36.39) 1,776.99 (142.72) (357.42) 1,078.89 2,442.81 (16,213.47) 163,468.00 before Tax before Tax before Profit/(Loss) Profit/(Loss) Profit/(Loss) ------0.10 0.22 0.03 31.23 7.46 15.17 91.62 0.86 27.29 34.23 131.31 178.66 519.42 793.26 197.34 495.37 284.75 589.81 202.60 306.68 784.76 4,497.11 2,235.71 2,762.91 9,627.61 1,546.84 3,677.42 2,373.60 1,708.57 2,039.82 6,312.84 4,744.61 13,234.93 14,327.88 20,550.34 2,170,891.00 Revenues Revenues Turnover/ Turnover/ Turnover/ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 4,289.25 Others Others Shares, Shares, Shares, Bonds & Bonds & Debnture, Debnture, Debnture, Investments Investments ------11.16 0.01 3.34 2.34 0.32 1.58 4.63 31.81 0.18 0.46 14.61 0.04 13.09 11.05 33.85 68.49 797.91 67.55 94.83 102.57 183.49 272.92 763.13 587.52 165.78 350.22 226.55 555.28 1,407.11 722.43 579.47 475.38 1,342.17 2,561.81 6,512.36 1,943.42 1,034.38 5,013.96 3,477.31 6,197.34 2,009.77 1,282.59 2,243.54 4,763.45 Total Total Total 6,285.09 6,844.84 10,292.83 5,904.24 34,872.62 Liabilities Liabilities 952,286.00 - - - - 0.01 2.34 4.87 0.32 0.04 0.00 0.00 6.46 0.05 0.40 75.93 38.42 35.60 26.38 55.42 611.42 651.34 129.80 144.90 253.67 575.28 220.22 526.79 367.86 480.77 1,143.17 134.99 343.08 1,610.91 755.72 226.29 1,549.21 966.09 1,158.01 3,155.73 1,019.77 4,124.30 1,855.54 3,733.80 7,474.51 3,853.36 3,344.74 11,332.24 9,628.76 3,459.83 9,806.72 4,935.02 10,413.47 5,527.99 4,730.49 8,748.09 12,506.29 Total Total 120,071.80 Assets Assets 1,577,799.00 ------0.01 3.18 4.47 0.19 0.00 11.28 0.02 94.41 (0.01) 43.77 38.35 35.83 13.58 94.57 (0.63) 20.60 142.10 (0.09) (0.05) 27.24 952.13 105.57 96.80 116.54 325.32 231.25 487.67 262.07 375.50 201.96 544.39 (96.55) 294.34 1,039.41 440.64 (158.06) 1,377.66 (706.27) 1,691.54 2,379.67 3,656.28 4,748.95 1,562.54 2,525.02 3,409.22 64,379.18 (1,355.95) 208,736.00 Reserves Reserves ------0.91 0.01 2.38 0.33 6.67 3.10 0.21 6.66 1.00 0.05 44.11 0.00 0.00 0.00 0.00 7.74 22.14 0.03 3.00 5.00 4.04 24.72 171.57 97.55 49.10 20.00 201.01 146.10 25.74 26.59 53.86 847.31 378.41 38.68 34.66 836.81 570.35 945.87 359.14 958.53 340.80 462.00 1,473.32 1,470.36 1,244.98 2,750.73 2,923.52 4,892.73 20,820.00 Capital Capital 416,777.00 INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR BRL BRL GBP INR INR INR INR INR INR INR INR EUR EUR EUR EUR EUR CNY CNY USD USD USD USD USD USD USD USD VND CHF CHF EUR EUR EUR EUR EUR KRW USD currency currency Reporting Reporting Italy USA USA USA USA India Brazil Brazil China China France France United United United United Ireland Mexico Canada Vietnam Country Country Kingdom Kingdom Kingdom Germany Germany Germany Germany Germany Germany UAE, Dubai UAE, Switzerland Switzerland South Korea * * * * * * * Name of the Subsidiary Company de Mexico SA CV* Novelis Ltda.* do Brasil Novelis Limited* Korea Novelis UK Ltd* Novelis Services Limited* Novelis Deutschland GmbH* Novelis GmbH* Aluminum Beteiligungs Novelis Switzerland SA Novelis SAS Lamines France Novelis SPA Italia Novelis Company Aluminum Holding Unlimited Novelis SAS PAE Novelis Holdings Limited Europe Novelis AG Novelis Name of the Subsidiary Company Holdings Inc.* Novelis 8018227 Canada Inc.* Sheet Ingot GmbH* Novelis MEA Ltd* Novelis Company* Trading Aluminum (Shanghai) Novelis Ltd.* Co., (China) Aluminum Products Novelis Limited* Vietnam Company Novelis Services (North America) Inc.* Novelis Inc.* Services (Europe) Novelis Ltda* Energetica Brecha Organization, Employement, Global Novelis Inc.* Ltd. (India) Infotech Novelis Aleris Deutschland Holding GmbH* Germany GmbH* Aleris Rolled Products Aleris Casthouse Germany GmbH* Sr. 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Sr. 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ANNEXURE VII

218 219 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 % of % of Share Share Share Holding Holding ------Dividend Dividend Proposed Proposed Proposed 1.42 1.20 0.18 0.16 0.01 0.01 5.32 8.89 0.03 0.03 0.02 0.00 0.00 0.00 0.00 (1.74) (1.34) 18.88 (4.15) (0.18) (0.01) (0.01) 44.72 (2.47) 20.70 39.46 (0.23) (0.23) (2.49) (0.25) (0.34) (9.90) (0.03) 332.01 (18.32) (19.67) (41.32) (18.26) (16.66) (63.32) (215.71) (30.80) (306.71) (146.02) (223.88) (548.24) Tax . Tax . Tax after after (1,661.97) (1,601.39) Profit/(Loss) Profit/(Loss) ------(66.92) (150.19) (1,114.93) (496.82) Gain/ Gain/ Loss from Loss from Loss from Operations Operations Discontinued Discontinued Discontinued ------1.70 7.01 1.82 0.31 0.01 2.29 0.39 0.38 0.25 0.03 0.20 6.40 0.06 0.04 0.04 0.00 0.00 0.00 for Tax for Tax for Provision Provision Provision 1.20 1.48 0.19 0.15 0.18 0.01 0.01 0.01 5.32 8.89 0.42 0.03 0.03 0.02 0.02 0.08 0.00 0.00 0.00 27.71 25.61 (1.34) (0.18) 190.11 (0.01) (0.01) 44.72 25.28 (2.47) 39.46 (2.49) (3.84) (0.25) (0.34) (9.90) 332.01 (18.32) (63.13) (19.67) (28.51) (18.26) (16.66) (73.69) (215.71) (146.02) (547.05) (546.54) (1,601.39) before Tax before Tax before Profit/(Loss) Profit/(Loss) Profit/(Loss) ------1.30 6.10 2.43 5.52 31.21 2.68 5.89 0.25 0.43 0.66 0.64 19.89 231.67 932.14 415.97 341.09 373.85 236.26 447.39 302.56 850.46 3,321.28 2,246.06 3,088.04 Revenues Revenues Turnover/ Turnover/ Turnover/ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Others Others Shares, Shares, Shares, Bonds & Bonds & Debnture, Debnture, Debnture, Investments Investments - - - 1.17 5.17 0.12 1.84 4.01 2.37 2.32 8.32 0.97 0.32 8.52 0.47 0.52 0.07 0.26 0.24 0.99 0.30 0.05 97.21 14.97 12.03 16.63 93.10 13.46 51.60 37.83 329.11 87.08 20.30 20.96 121.65 44.99 153.33 152.36 165.38 1,114.51 377.45 770.07 306.98 706.50 1,410.14 1,574.16 5,167.92 5,632.96 2,245.49 Total Total Total Liabilities Liabilities 0.11 1.22 5.16 5.61 1.09 2.83 2.82 5.76 0.32 0.67 14.17 2.09 0.63 0.03 0.58 16.16 0.00 15.27 21.75 42.13 131.15 10.42 37.72 77.02 42.74 20.74 231.15 117.48 125.01 275.01 103.62 159.09 418.46 303.76 684.23 563.40 2,011.69 2,221.95 3,103.25 1,682.38 2,060.18 2,779.89 5,869.67 2,760.56 20,193.10 3,060.96 12,306.32 15,069.87 Total Total Assets Assets 1.79 1.20 0.21 0.19 4.10 1.04 0.01 8.76 0.23 6.07 (1.71) 0.83 0.62 0.03 0.06 0.00 0.00 15.77 31.75 (1.32) (4.15) (0.18) 44.72 (2.47) (0.23) (2.46) (0.34) (0.03) (0.00) 327.14 (19.67) (13.34) (41.32) (14.89) (18.05) (217.19) (22.86) (30.35) (83.95) (218.21) (302.21) (720.18) (143.88) (941.66) (1,596.17) (1,588.71) (1,744.63) (1,562.84) Reserves Reserves - - - 1.10 0.13 1.02 0.15 0.14 2.77 2.35 7.48 0.79 0.32 0.32 8.07 9.59 0.38 0.02 0.02 0.20 0.04 0.00 0.00 0.00 70.16 12.00 177.19 24.22 43.74 20.25 48.83 24.45 307.41 214.04 765.82 490.36 1,593.61 15,019.11 1,309.77 1,565.70 1,007.43 3,273.72 2,248.67 2,932.60 2,053.24 9,580.79 3,586.94 6,569.55 11,657.00 Capital Capital JPY INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR INR PLN CHF EUR CNY CNY USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Reais

currency currency ownership 20% with consolidated Not – Company Associate - Reporting Reporting USA USA USA USA USA USA USA USA USA USA USA Brazil Japan China China Scotia France United United Poland Country Country Kingdom Denmark Barbados ownership 30% with consolidated Not – Company Associate Hong Kong Switzerland Netherlands Canada, Nova Canada, Nova Name of the Subsidiary Company Aleris Corporation* Inc.* Aleris International, Inc.* Aleris Rolled Products, Acquisition Co.* UWA Aleris RM, Inc.* LLC* Aleris Rolled Products, Sales Corporation* Aleris Rolled Products LLC* of Ohio, IMCO Recycling Nichols Aluminum LLC* LLC* Nichols Aluminum-Alabama Name Acquisition Co.* Aleris Holding Canada ULC* Aleris Aluminum Netherlands B.V.* Aleris Switzerland GmbH* Name of the Subsidiary Company z o.o.* Sp. Aleris Aluminum Poland S.a.r.l.* Aleris Aluminum France Aleris Aluminum UK Limited* Aleris Aluminum Denmark ApS* Ltd.* Aleris Aluminum Japan, Ltd.* (Barbados) International Aleris Asia Pacific Ltd.* Co., Aleris (Shanghai) Trading Limited* Aleris Asia Pacific Ltd.* Aleris Aluminum (Zhenjiang) Co., de Industria Comercia Hindalco Do Brazil Alumina LTDA* Sr. 48 49 50 51 52 53 54 55 56 57 58 59 60 61 Sr. 62 63 64 65 66 67 68 69 70 71

ANNEXURE VII GmbH Recycling Verpackung Aluminium Deutsche SA Recyclage Aluminium France N.V. (Netherlands) Minerals AV of Subsidiary # Inc. Metals AV of Subsidiary ## Limited Interanational Alumina Utkal of @ Subsidiary etc. De-registered/Dissolved/Liquidated % Liquidation Under $ Sale for ^ Held rate. exchange average at translated are items Profit/(Loss) and rate exchange at closing translated are items sheet Balance * Income Other + includes Turnover Revenue Entities Indian For {}

220 221 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

ANNEXURE VII

List of Subsidiaries which have been liquidated / amalgameted / sold during FY 20-21

a. Novelis Acquisitions LLC – Company merged into Aleris Corporation after Aleris acquisition on April 14, 2020. / joint considered Base on why Base on why b. Aleris Aluminum Duffel BV and Aleris Aluminum Italy S.r.l. - companies was sold to LIBERTY (Alvance) on September 30, 2020. the associate venture is not venture

c. Aleris Rolled Products Canada ULC and Aleris Rolled Products Mexico, S.de R.L.de C.V. were divested as part of the sale of the Lewisport Plant to Velocium ABS Corp. on December 1, 2020. Note C Note Note A Note A Note A Note Note A Note of how of how there is there influence significant d. Aleris Worldwide, Inc. merged into Aleris Ohio Management, Inc. on December 12, 2020. C & B Note Description e. Intl Acquisition Co. merged into Aleris International, Inc. on December 12, 2020. Equity Equity f. Aleris Ohio Management, Inc. merged into Aleris International, Inc. on December12, 2020. Equity Equity Equity

g. Aleris Deutschland Vier GmbH & Co. KG was dissolved on December 15, 2020. Consolidated Not considered Not considered h. Dutch Aluminum C.V. was dissolved on December 11, 2020. in consolidation 1 - - 14 32 1.21 1.19

i. Aleris Holding Luxembourg S.à r.l. was liquidated on December 31, 2020. 0.01 0.07 0.07 0.82 4.49 0.06 46.21 (0.08) j. Aleris Deutschland Vierte Verwaltungs GmbH merged into Aleris Deutschland Holding GmbH on Febraury 2, 2021. (Rs. in Crore ) (Rs. in Crore consolidation consolidation Considered in Considered -

From Ccy To Ccy Avg spot rate for the year Closing rate for 31st March 2021 71 147 1.72 1.52 7.56 11.57 13.41 13.41 (125) (1.57) (1.62) 92.38 22.90 30.45 AUD INR 53.3214 55.5819 (0.05)

BRL INR 13.7469 12.9885 Networth to to Networth (Rs. in Crore) balance sheet balance

CAD INR 56.1948 58.2068 as Shareholding per latest audited audited per latest

CHF INR 80.4429 77.3690 30% 20% 50% 50% 50% 40% 15.00 26.00 26.00 26.00 49.00 45.00 50.00 60.00 CNY INR 10.9604 11.1632 Extent of Extent Holding% Holding%

EUR INR 86.5786 85.7849 attributable

GBP INR 97.0311 100.8462 23 1.37 1.27 2.17 1.79 263 263 9.80 6.90 0.00 12.77 0.39 19.25 0.00 1,942 JPY INR 0.7002 0.6606 2,227.58 Amount of investment investment

NOK INR 8.1167 8.5504 (Rs. in crore)

SEK INR 8.3712 8.3771 1 1 40 3,000 5,000 5,000

SGD INR 54.3439 54.3774 66,562 3,001.00 10,041.00 shares 1,274,000 1,274,000 6,895,200 6,895,200 9,800,000 9,800,000 15,296,700 15,296,700 12,765,000 41,250,000 41,250,000 USD INR 74.2364 73.1485 Number of

From Ccy To Ccy Avg spot rate for the year Closing rate for 31st March 2021 Latest Latest Audited Audited Balance Balance 31-Mar-21 31-Mar-21 31-Mar-21 31-Mar-21 31-Mar-21 31-Mar-21 31-Mar-21 31-Mar-21 31-Dec-20 31-Dec-20 31-Dec-20 31-Dec-20 31-Mar-20 31-Mar-20 BRL USD 0.1852 0.1776 Sheet Date

CHF USD 1.0840 1.0577

CNY USD 0.1477 0.1526

EUR USD 1.1669 1.1728

GBP USD 1.3078 1.3787

JPY USD 0.0094 0.0090

SEK USD 0.1129 0.1145 There is significant influence due to percentage holding of share capital holding of share to percentage is significant influence due There of financial statements Non-availability the joint arrangements over has joint control The Group SGD USD 0.7323 0.7434 Name of Associates / Joint Ventures Joint / Associates of Name Subsidiary Renewables Birla Aditya Ltd Utkal Limited Renewable Birla Aditya (ABRUL) Inc. @ of Novelis Associates Limited Solar Renewable Birla Aditya Aditya Birla Science and Technology Technology and Science Birla Aditya Limited Private Company (GMBH) Minerals Global Hydromine Limited Limited Shakti MNH Mahan Coal Limited Coal Mahan Tubed Coal Mines Limited Mines Coal Tubed © Inc. Novelis of Associates List of Subsidiaries which are yet to commence operations: Sr. Sr. No. Associates 2 3 4 5 1 Joint Ventures 1 2 Joint Operations 1 2 3 Inc. of Novelis Associates @ - VerpackungReccling Aluminium Deutsche GMBH France Aluminium Recyclage SA Recyclage Aluminium France Inc. of Novelis © - Joint Operations Aluminium Norf GmbH Norf Aluminium Limited Aluminium Ulsan Inc. Aluminum Logan AluInfra Services SA Services AluInfra Part “B” - Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures Companies Associate to Section 129 (3) of the Companies Act, 2013 related pursuant to “B” - Statement Part East Coast Bauxite Mining Co Pvt Ltd. A Note B Note C Note

222 223 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

BUSINESS RESPONSIBILITY REPORT

Building Sustainable Businesses at the Aditya contract workers to inculcate a sense of ownership among Hindalco Sustainability Vision Birla Group: them towards their performance contributions in building a sustainable business. Our Group Sustainable Business “Hindalco endeavours to become the leading Indian conglomerate for sustainable business practices Aditya Birla Group is set on a path of becoming a leading Framework is currently certified to 14 international standards across our global operations. We believe that this means that as we go forward towards the Indian conglomerate for building sustainable practices (http://sustainability.adityabirla.com/). constrained operating environments of 2030 and 2050 that for a continued “Sustainable World” throughout its operations worldwide. We foresee a future built it can increasingly only contain “Sustainable Businesses”. of “Sustainable Businesses” which would continue to flourish We have seen subsequent reductions in our number of in a “Sustainable World” with growing needs and stringent accidents, and consumption of energy and water. We have environmental and legal constraints. Transcending towards a also been successful in implementing our Biodiversity Hindalco has been publishing Sustainability Report since FY 11 The non-financial performance parameters have been assured “Sustainable World”, we envision a future which would contain plans. As part of our World Business Council for Sustainable using latest reporting frameworks, such as Global Reporting by Ernst & Young Associates LLP (EY) (External independent only “Sustainable Businesses”. On our path of transformation Development’s Water and Sanitation and Hygiene (WASH) Initiative (GRI). For FY 2020-21, the Company has migrated assessing agency). towards Integrating Reporting framework, which demonstrates towards a Sustainable World, we integrate innovation with our pledge we aim to provide safe drinking water, sanitation and The Integrated Annual Report of the company has been company’s value creation approach through financial and non- existing sustainability models with an ambition to make our hygiene for every employee at all our operational sites. This hosted on its website www.hindalco.com. Any shareholder financial performance. The non-financial disclosures in the business sustainable in every sense of its term. programme led us to build new bathrooms especially for interested in obtaining a physical copy of the same may write to report has been prepared as per Value Reporting Foundation’s women and differently abled people. Such initiatives ensure the Company Secretary at the Registered Office of the In an attempt to make our company and business endeavours Integrated Reporting Framework and is in accordance with well-being of our people thereby fostering an environment for Company. adaptable for the future world, we have committed ourselves Comprehensive Option of GRI Standards. inclusive growth. Achievements of these type draws us closer to operate within the constraints of a two-degree sustainable to our goal of building a platform for a sustainable business. world - a pledge entered into by all nations at the historic Section A: General Information about the Company It becomes the need of the hour to think beyond the agenda United Nations Paris Agreement 2015 on Climate Change. Being 1. Corporate Identity Number (CIN) of the Company L27020MH1958PLC011238 of “Responsible Stewardship” in order to create completely well aware of our operational implications on the environment, 2. Name of the Company Hindalco Industries Limited sustainable business models and systems for the future. we take efforts to mitigate these impacts thereby contributing Accounting for the global mega-trends and their geographical, 3. Registered address Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road, Andheri (East), towards the creation of a sustainable planet. Mumbai: 400093 physical, technological effects and the changes needed in the 4. Website www.hindalco.com Preparing ourselves for a sustainable future, we ponder over legal system (including regulations and tax) – are some of the a question about the status quo of sustainable ways today – parameters that needs to be transformed for businesses to 5. E-mail id [email protected] “If everyone and every business followed the law as written adapt to the future needs of a “Sustainable World”. To identify 6. Financial Year reported 01st April, 2020 to 31st March, 2021 today, is the planet sustainable?” Rapid growth of population, the risks these external factors can have on our businesses, 7. Sector(s) that the Company is engaged in (industrial ITC Code Product Description which is estimated to reach 9 billion by 2050, coupled with the we need to enhance our performances and involve our activity code-wise) 7601 Aluminium Ingots challenges of climate change, scarcity of natural resources, Strategic stakeholders having expertise in these domains. To 7606 Aluminium Rolled Products 7605 increased pollution levels, large volume of waste generation ensure our preparedness for the future, we need to improve 7605 Aluminium Redraw Rods and loss of biodiversity pose a threat to the sustenance of our business models, strategies and risk profiles to “Future 7403 Copper Cathodes our planet. It calls for collective efforts from leaders across Proof” our business endeavours. In order to build resilient 7408 Copper Wires the globe to unite international bodies and governments to business operations, we need to align our value chains with 7408 Continuous Cast Copper Rods mitigate these ecological risks and control the damage caused the demands of a “Sustainable World”. If only a “Sustainable 2807 Sulphuric Acid till date. For us at Aditya Birla Group it is imperative to be ahead business” can be contained in a “Sustainable World”, then it in leading this change for better. must be backed by a “Sustainable Value Chain”. With an aim 7108 Gold to lead in this endeavor, it has become our business imperative 7106 Silver We work to strengthen our management systems in order to map our value chains to the sustainable model of the future. 8. List three key products/ services that the Company • Aluminium Ingots / Rolled Products to contribute effectively in building a sustainable business. Our leadership is getting ready to identify external factors manufactures/provides (as in balance sheet) • Copper Cathodes This forms the initial step of our programme to transform to a • Concast Copper Rods that might have an influence on our value chains and business sustainable business. Further as part of this programme, our 9. Total number of locations where business activity is 48* Global Manufacturing Units (33 in Novelis and 15 in India Operations) models and the changing needs in terms of our products and “Responsible Stewardship” agenda focusses on moving past undertaken by the Company brands. *These global manufacturing locations are mapped on page 7, 8 & 9 of mere legal compliances and conforming to the international this Integrated Annual Report FY 2020-21. standards set by the global bodies of the International Finance To minimize the impacts of these inevitable changes of the Registered Office and Zonal Marketing Offices • Ahura Centre, 1st Floor, B Wing, Mahakali Caves Road, Corporation (IFC), the Organisation for Economic Cooperation future, we need to build robust and sustainable supply chains Mumbai: 400 093. and Development (OECD), the International Standards for our businesses. • Bauxite and Coal Mines in the state of Jharkhand, Chhattisgarh, Organisation (ISO), Occupational Health and Safety Advisory Maharashtra and Orissa. Services (OHSAS), the Global Reporting Initiative (GRI), the For influencing such a change, it will take time especially with • Aluminium Marketing offices are at Mumbai, Delhi, Bangalore, Kolkata Forestry Stewardship Council and others. We have adopted businesses with complex value chains. But to begin our journey and Chennai. a Group wide Sustainable Business Framework of Policies, on this path, we are making the businesses of today ‘future- • Copper Marketing office are at Mumbai, Bangalore and Noida. and formulated Technical Standards, and Guidance Notes ready’ and thereby contributing in our own way to the larger for our leadership, as well as our managers, employees and picture of building a “Sustainable tomorrow”. Markets served by the Company Local State National International 3 3 3 3

224 225 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

BUSINESS RESPONSIBILITY REPORT CORPORATE GOVERNANCE REPORT

Section B: Financial Details of the Company (Standalone) GOVERNANCE PHILOSOPHY Disclosure Requirements) Regulations 2015, and amendment 1. Paid-up Capital (`) 222 crore The Aditya Birla Group is committed to the adoption of best thereto hereinafter referred to the “Listing Regulations”. Your Company’s compliance with these requirements is presented 2. Total Turnover (`) 42,701 crore governance practices and its adherence in the true spirit, at all in the subsequent sections of this report. 3. Total Profits after taxes (`) 993 crore times. Our governance practices are a product of self-desire 4. Total Spending on Corporate Social Responsibility (CSR) The Company has spent ` 40.50 Crores on CSR which is 2.98% of the average reflecting the culture of the trusteeship i.e., deeply ingrained in as percentage of profit after tax (%) net profit for the previous three financial years. our value system and reflected in our strategic thought process. BOARD OF DIRECTORS The legal requirement to spend two percent of average net profit of the At a macro level, our governance philosophy rests on five ` Composition of the Board Company as per Section 135(5) was 26.89 Crore and the Company has spent basic tenets viz., Board accountability to the Company and the ` 13.61 Crore in excess which will be set off within next three financial years. Your Company’s Board comprises of 10 Non-Executive Directors shareholders, strategic guidance and effective monitoring by 5. List of activities in which expenditure in 4 above has been a. Education as on March 31, 2021 with considerable experience in their the Board, protection of minority interests and rights, equitable incurred b. Healthcare respective fields. Of these, 6 Directors are Independent treatment of all shareholders as well as superior transparency Directors of which one includes woman director. c. Women empowerment and timely disclosures. d. Sustainable Livelihood None of the Directors on the Board is a Member of more than e. Infrastructure Development In line with this philosophy, Hindalco Industries Limited (the 10 Committees or a Chairman of more than 5 Committees (as Company), flagship Company of the Aditya Birla Group, is specified in Regulation 26 of Listing Regulations), across all the Section C: Other Details Section D: BR Information striving for excellence through adoption of best governance Companies in which they hold Directorships. Further, none of 1. Does the Company have any Subsidiary Company/ 1. Details of Director/Directors responsible for BR and disclosure practices. The Company, as a continuous the Non-Executive Directors serve as Independent Directors in Companies? a. Details of the Director responsible for process, strengthens the quality of disclosures, on the Board more than seven listed companies and none of the Executive or Yes, as on 31st March, 2021, the Company has 71 implementation of the BR policy/policies composition and its functioning, remunerations paid and level Whole-time Directors serve as Independent Directors on any subsidiaries - 12 domestic and 59 foreign. of compliance with various Corporate Governance Codes. listed Company. All the Directors have periodically intimated DIN Number 01055000 2. Do the Subsidiary Company/Companies participate in about their Directorship and Membership in the various the BR Initiatives of the parent company? If yes, then Name Mr. Y. P. Dandiwala Compliance with Corporate Governance Guidelines Boards / Committees of other companies. The same is within The Company is fully compliant with the requirements under indicate the number of such subsidiary company(s): Designation Independent Director permissible limits as provided by the Companies Act, 2013 and Securities and Exchange Board of India (Listing Obligations & Listing Regulations. Hindalco’s Integrated Annual Report covers only the India Operations. Further, Novelis Inc., also publishes b. Details of the BR head The details of the Directors with regard to outside directorships and committee positions as at March 31, 2021 are as follows: Sustainability Report (Purpose Report) separately. Sr. No. Particulars Details Director# Category No. Of other No. of outside Name of Outside Listed Entity Category of 3. Do any other entity/entities (e.g. suppliers, distributors 1. DIN Number N.A. etc.) that the Company does business participate in the Directorships Companies Committee where the person is a Director Directorship in outside Held3 Positions Held4 Listed Entities BR initiatives of the Company? If yes, then indicate the 2. Name Mr. Anil Malik percentage of such entity/ entities? 3. Designation President & Company Secretary Public Member Chairman 6, 7 At present, suppliers and distributors with whom the 4. Tel. No. 022-66626666 Mr. Kumar Mangalam Birla Non-Executive 09 - - 1. Grasim Industries Limited Non-Executive Chairman Company does business, do not participate in the Business [DIN: 00012813] Chairman 2. Aditya Birla Fashion and Non-Executive Chairman Responsibility initiatives of the Company directly. 5. E-mail id [email protected] Retail Limited 3. UltraTech Cement Limited Non-Executive Chairman 2. National Guidelines for responsible business conduct released by the Ministry of Corporate Affairs has adopted 4. Vodafone Idea Limited Non-Executive Chairman nine areas of Business Responsibility. These briefly are as follows: 5. Century Textiles and Non-Executive Chairman Industries Limited Principle Description of the Principle Reference Page 6. Aditya Birla Capital Limited Non-Executive Chairman Report Number Principle 1 Businesses should conduct and govern themselves with Ethics, Transparency Social and Relationship Capital 143 Mrs. Rajashree Birla6, 7 Non-Executive 05 - - 1. Grasim Industries Limited Non-Executive Director and Accountability. Corporate Governance Report 239 [DIN: 00022995] 2. UltraTech Cement Limited Non-Executive Director 3. Pilani Investment and Industries Non-Executive Director Principle 2 Businesses should provide goods and services that are safe and contribute Intellectual Capital 78 Corporation Limited to sustainability throughout their life cycle. Social and Relationship Capital 127 4. Century Textiles and Non-Executive Director Principle 3 Businesses should promote the wellbeing of all employees. Human Capital 46 Industries Limited Principle 4 Businesses should respect the interests of, and be responsive towards all Stakeholder Engagement and 25 5. Century Enka Limited Non-Executive Director stakeholders, especially those who are disadvantaged, vulnerable and Materiality Assessment 2 marginalized. Mr. A. K. Agarwala Non-Executive 05 - - 1. Tanfac Industries Limited Non-Executive Director [DIN: 00023684] Principle 5 Businesses should respect and promote human rights. Human Capital 46 Principle 6 Business should respect, protect, and make efforts to restore the environment. Natural Capital 85 Mr. D. Bhattacharya Non-Executive 02 03 - 1. Vodafone Idea Limited Non-Executive Director Principle 7 Businesses, when engaged in influencing public and regulatory policy, should Social and Relationship Capital 134 [DIN: 00033553] 2. NOCIL Limited Independent Director do so in a responsible manner. Mr. K. N. Bhandari Independent1 08 07 03 1. Jaiprakash Associates Limited Independent Director Principle 8 Businesses should support inclusive growth and equitable development Financial Capital 30 [DIN: 00026078] 2. Gujarat Sidhee Cement Limited Independent Director Natural Capital 108 3. Saurashtra Cement Limited Independent Director Social and Relationship Capital 119 4. Shristi Infrastructure Independent Director Developments Corporation Principle 9 Businesses should engage with and provide value to their customers and Social and Relationship Capital 127 Limited consumers in a responsible manner.

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Director# Category No. Of other No. of outside Name of Outside Listed Entity Category of Following are the names of the Directors with such skills / expertise / competencies Directorships Companies Committee where the person is a Director Directorship in outside Industry Innovation Financial Corporate Strategic Marketing Legal & Sustainability Risk Human General Metals and 3 4 Held Positions Held Listed Entities Knowledge Literacy Governance Experience Compliance Management Development Management Mining Public Member Chairman K M Birla 3 3 3 3 3 3 3 3 3 3 Mrs. Alka Bharucha Independent1 08 09 03 1. UltraTech Cement Limited Independent Director Rajashree Birla 3 3 3 3 [DIN: 00114067] 2. Orient Electric Limited Independent Director Satish Pai 3 3 3 3 3 3 3 3 3 3 3 3 3. Honda India Power Products Independent Director Limited D. Bhattacharya 3 3 3 3 3 3 3 3 3 3 3 3 4. Birlasoft Limited Independent Director P. K. Maheshwari 3 3 3 3 3 3 3 3 3 3 3 Mr. Y. P. Dandiwala Independent1 03 03 01 1. Century Textile and Industries Independent Director A. K. Agarwala 3 3 3 3 3 3 3 3 3 3 3 3 [DIN: 01055000] Limited 3 3 3 3 3 3 3 3 3 2. Pilani Investment and Industries Independent Director K. N. Bhandari Corporation Limited Y. P. Dandiwala 3 3 3 3 3 3 3 3 Mr. Satish Pai Managing - - - - - Alka Bharucha 3 3 3 3 3 3 3 3 [DIN: 06646758] Director Vikas Balia 3 3 3 3 3 3 3 3 Mr. Praveen Whole-Time 01 - - - - 3 3 3 3 3 3 3 3 KumarMaheshwari Director Sudhir Mital [DIN: 00174361] Anant Maheshwari 3 3 3 3 3 3 3 3 3 Dr. Vikas Balia Independent1 01 - - - - [DIN: 00424524] Board members collectively display the following personal He has been the architect of over 40 acquisitions in India Mr. Sudhir Mital Independent1 1 - - 1. Jaiprakash Power Venture Independent Director qualities: and globally, among the highest by any Indian multinational. [DIN: 08314675] Limited • Integrity – fulfilling a director’s duties and responsibilities; Under his stewardship, the Aditya Birla Group enjoys a position 5 1 Mr. Anant Maheshwari Independent , - - - - - • Curiosity and courage – to ask questions and courage to of leadership in all the major sectors in which it operates, (DIN No.02963839) persist in asking or challenging management and fellow from cement to chemicals, metals to textiles, and apparels 1. Independent Director means a director defined as such under Regulation 16 of the Listing Regulations and Section 149 of the Companies Act, 2013. board members where necessary; to financial services. Over the years, Mr. Birla has built a 2. Mr. A. K. Agarwala was an Executive Director till September 10, 2003. Thereafter, he has moved to other responsibilities in the Aditya Birla Group. • Interpersonal skills – work well in a group, listen well, be highly successful meritocratic organisation, anchored by an 3. Excludes Directorship held in Private Limited Companies, Foreign Companies and Companies under Section 8 of the Companies Act, 2013. extraordinary force of 120,000 employees belonging to 42 4. Represents only membership/chairmanship of Audit Committee and Stakeholders Relationship Committee of Indian Public Limited Companies. Further, tactful, able to communicate point of view frankly; different nationalities.Outside the Group, Mr. Birla has held membership includes Chairmanship. • Interest – in the organization, its business and the people; 5. Mr. Anant Maheshwari was appointed as an Independent Director w.e.f August 14, 2020. several key positions on various regulatory and professional • Instinct – good business instincts and acumen, ability to 6. No other Director is related to any other Director on the Board except for Mr. Kumar Mangalam Birla and Mrs. Rajashree Birla who are son and mother respectively. Boards. He was a Director on the Central Board of Directors get to the crux of the issue quickly; 7. Mr. Kumar Mangalam Birla and Smt. Rajashree Birla are declared as promoter and promoter group respectively. of the Reserve Bank of India. He was Chairman of the Advisory 8. Mr. Ram Charan (DIN :03464530 ) has resigned as Independent Director w.e.f August 14, 2020 due to age and personal reasons. • Believer in gender diversity and Committee constituted by the Ministry of Company Affairs and # The average tenure of the Board as on 31st March, 2021 is approximately 11 years. • Active participation – at deliberations in the meeting. also served on the Prime Minister of India’s Advisory Council on Trade and Industry. As the Chairman of Securities and Exchange Board’s functioning and Procedure Your Company’s Board comprises of an equal number of Independent and Non-Independent Directors. The Directors Board of India (SEBI) Committee on Corporate Governance, he Hindalco’s Board of Directors plays a primary role in ensuring good governance and functioning of the Company. All statutory framed the first-ever governance code for Corporate India. He and other significant & material information including information as mentioned in Regulation 17 (7) read together with Schedule are professionals, possessing wide experience and expertise is also the first Indian Industrialist to be conferred an Honorary II of Listing Regulations is placed before the Board to enable it to discharge its responsibility of strategic supervision of the in their areas of function - strategy; finance; governance and degree by the Institute of Company Secretaries of India (ICSI). Company as trustees of the shareholders. legal; marketing, insurance, among others, which together with their collective wisdom fuel your Company’s growth. With one- Mr. Birla is deeply engaged with Educational Institutions. Your Company’s Board of Directors have identified the following skills / expertise / competencies to function and sixth of the Board comprising of woman directors, the Board He is the Chancellor of the Birla Institute of Technology & discharge their responsibilities effectively:- reflects gender diversity. Science (BITS) with campuses in Pilani, Goa, Hyderabad and - Industry knowledge Dubai. He is also the Chairman of India’s premier management - Innovation A brief profile of the Directors of your Company is as follows: institute — Indian Institute of Management, Ahmedabad. On - Financial literacy Kumar Mangalam Birla was appointed as a Non-Executive the global arena, Mr. Birla serves on the London Business - Corporate Governance Chairman of our Company with effect from October 19, 1995. School’s Asia Pacific Advisory Board and is an Honorary Fellow - Strategic expertise He is the Chairman of the Board of Directors of your Company of the London Business School. In 2019, Mr. Birla constituted a - Marketing and the Chairman of Aditya Birla Group (the “Aditya Birla £15mn scholarship programme at the London Business School Group”), which operates in 36 countries across six continents. in memory of his grandfather, Mr. B.K. Birla, marking the - Legal and Compliance He is a chartered accountant and holds an MBA degree from largest ever endowed scholarship gift to a European Business - Sustainability the London Business School.Mr. Birla chairs the Boards of all School.A firm practitioner of the trusteeship concept, Mr. Birla - Risk Management major Group companies in India and globally. In the 25 years has institutionalised the concept of caring and giving at the - Human Development that he has been at the helm of the Group, he has accelerated Aditya Birla Group. With his mandate, the Group is involved in - General Management growth, built meritocracy, and enhanced stakeholder value. In meaningful welfare driven activities that distinctively impact the process he has raised the Group’s turnover by over 20 times. - Metals and Mining the quality of life of weaker sections of society.

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Rajashree Birla is a Non-Executive Director and was appointed Director of our Company with effect from November 11, 2019 the fields of Technology, Industrial & Automation, Enterprise The details of attendance of each Director at the Board on the Board of Directors on March 15, 1996. Mrs. Rajashree for a period of five years. He is a graduate from Allahabad & B2B markets, Strategy & Business Development. Meetings and Last Annual General Meeting (AGM) are as Birla is an exemplar in the area of community initiatives and University with a Master’s degree in Indian History. He also follows: Satish Pai was appointed as Whole-Time Director on our Board rural development. Mrs. Birla spearheads the Aditya Birla holds additional Masters in Rural Development from the since August, 2013 and appointed as the Managing Director of Name of Director No. of Board Attended Centre for Community Initiatives and Rural Development, University of Birmingham. He has been a former member of the our Company with effect from August 01, 2016 for a period of Meetings Last AGM@ the Aditya Birla Group’s (Group) apex body responsible for Indian Administrative Service from the Punjab Cadre, Secretary five years. He is further reappointed by the Board of Directors development projects. She oversees the social and welfare to Department of Fertilizers – Government of India, and Special Held Attended at their meeting held on May 21, 2021 for a period of three driven work across all the Group’s major companies. The Secretary to MCA. He was also a former acting Chairman of Mr. Kumar Mangalam Birla 6 6 Yes years w.e.f August 1, 2021 subject to approval of shareholders footprint of the Centre’s work straddles over 7,000 villages, Competition Commission of India (CCI). Has rich professional in ensuing Annual General Meeting. He holds a Bachelor’s Mrs. Rajashree Birla 6 6 Yes reaching out to 9 million people. The Group runs 20 hospitals experience in the fields of public policy and governance after degree in Mechanical Engineering from the Indian Institute Mr. A. K. Agarwala 6 6 Yes and 56 schools where quality education is imparted to over nearly four decades of service. He has been a key functionary of Technology, Madras. He has experience in areas such as 46,500 children. Both its hospitals as well as schools are with regards to the Companies Bill, 2013 Mr. D. Bhattacharya 6 6 Yes operations, recruitment, and training. ‘Not For Profit’ institutions. Mrs. Birla is the Chairperson of Mr. K. N. Bhandari 6 6 Yes Kailash Nath Bhandari is a Non-Executive and Independent the FICCI – Aditya Birla CSR Centre for Excellence, Habitat Praveen Kumar Maheshwari is a Whole Time Director Director on the Board of our Company. Prior to joining our Mrs. Alka Bharucha 6 6 Yes for Humanity (India) and is on the Board of the Asia Pacific and Chief Financial Officer of the Company. He joined the Company, he has also served as the Chairman and Managing Mr. Ram Charan** 2 1 N.A Committee as well as Habitat’s Global Committee. She is Company as its Chief Financial Officer in December 2011. He Director of the New India Assurance Company Limited. He the Chairperson of FICCI’s first ever Expert Committee on was inducted in the Board as the Whole Time Director in May Mr. Y. P. Dandiwala 6 6 Yes holds a Bachelor’s degree in Arts and Law. CSR. She is on the Board of BAIF Development Research 2016. He also worked as the CEO of Copper business of the Mr. Satish Pai 6 6 Yes st th Foundation, Pune and also serves on the Board of directors of Dr. Vikas Balia is a Non-Executive Director and Independent Company for the period from 1 July 2019 to 30 April 2021. Mr. Mr. Praveen Kumar 6 6 Yes the CSR Committee of the State Bank of India. As a patron of Director of our Company with effect from July 19, 2019 for a Maheshwari, a Chartered Accountant with an MBA from IIM - Maheshwari arts and culture, she heads the “Sangit Kala Kendra”, a Centre period of five years, founder of Legalsphere Law firm, rank Ahmedabad, has over 38 years of work experience in areas Dr. Vikas Balia 6 6 Yes for performing arts, as its President.In recognition of the holding Chartered Accountant and a lawyer and has a Master’s of General Management and Finance, including mergers & exemplary work done by Mrs. Rajashree Birla, leading national degree in Mercantile Laws with doctoral research (Ph. D) on acquisitions, fundraising, investor relations in India and global Mr. Sudhir Mital 6 6 Yes and international organizations have showered accolades Securitization Laws. He has varied and extensive experience on financial markets. Prior to joining Hindalco, he has worked with Mr. Anant Maheshwari* 4 4 Yes upon her. Among these the most outstanding one has been commercial and constitutional law. He is an adjunct faculty in a number of business houses engaged in different industries. @AGM held on 10th September, 2020. that of the Government of India which bestowed the “Padma many institutions and lectures for CA, Law and MBA students. His last assignment before joining the Company was as Group * Mr. Anant Maheshwari was appointed on the Board of the Company at its Bhushan” Award in 2011 on Mrs. Rajashree Birla in the area CFO & Executive Director – Finance of Bharat Forge Limited. meeting held on 14th August, 2020. Yazdi Dandiwala is a Non-Executive Director and Independent of “Social Work”. In recognition of Mrs. Birla’s unrelenting ** Mr. Ram Charan tendered his resignation as Independent Director w.e.f Director of our Company with effect from August 14, 2015 for endeavours towards polio eradication, she was honoured with August 14, 2020. a period of five years. He is further reappointed for a period of Board Meetings the much coveted “Polio Eradication Champion” Award by the five years w.e.f August 14, 2020. He is qualified as a Bachelor in The Company Secretary drafts the agenda for each meeting Government of India. Likewise, the ‘Global Golden Peacock Science and holds a degree in Law. He is Solicitor by profession. along with the explanatory notes. The Board meets at once PERFORMANCE EVALUATION OF BOARD Award for CSR’ was conferred upon her by Dr. Ola Ullsten, He is currently a partner of Mulla & Mulla and Craigie Blunt a quarter to review the quarterly results and other items on Pursuant to the provisions of Companies Act, 2013 and Listing the Former Prime Minister of Sweden in Portugal. Among & Caroe, Advocates & Solicitors. He has experience as a the agenda. Various Board Committees meet as per the legal Regulations, the Directors have carried annual performance other distinctive awards received by Mrs. Birla, feature the corporate Commercial Lawyer with experience in corporate requirement or otherwise to transact the business delegated evaluation of Board, Independent Directors, Non-Executive Economic Times’ prestigious Award: Corporate Citizen of the and commercial transactions. by Board of Directors. Directors, Executive Directors, Committee and Chairman of Year, twice in a decade, first in 2003 and again in 2012; the All the Board. India Management Association’s ‘Corporate Citizen of the Year Alka Bharucha is a Non- Executive Director and Independent Since the Companies Act 2013, read with the relevant rules made thereunder, facilitates the participation of Director Award’, the IOD’s ‘Distinguished Fellowship Award’ and the Director of our Company with effect from July 11, 2018 for a The evaluation framework focused on various aspects of Board in Board/Committee Meetings through video conferencing ‘FICCI FLO Golden Laurel Award’. period of five years. She earned her B.A (Hons) in 1976 and LLB and Committees such as review, timely information from in 1979 from University of Bombay, Masters in Law from the or other audio visual mode, the option to participate in the Debnarayan Bhattacharya is a Non-Executive Director and the management etc. Also, performance of individual directors University of Bombay and University of London and Solicitor meeting through video conferencing was made available for Vice Chairman of our Company with effect from July 31, 2016. He was divided into Executive, Non-Executive and Independent High Court Mumbai and Supreme Court of England and Wales. the Directors except in respect of such meetings/Items which has experience in managing business operations. He joined the Director and based on the parameters such as contribution, She began her career with Mulla & Mulla & Craigie Blunt & are not permitted to be transacted through video conferencing. Aditya Birla Group in 1998 and has held several key positions attendance, decision making, action oriented, external Caroe, and joined Amarchand & Mangaldas as partner in within the Aditya Birla Group. He was appointed as Managing The Members of the Board have complete freedom to express knowledge etc. 1992. In 2008, she co-founded Bharucha & Partners which, on Director of the Company in the year 2003. He is qualified in their opinion and decisions are taken after detailed discussion. inception, was ranked by RSG Consulting, London among the Bachelor of Engineering (Chemicals) and IIT from Kharagpur. The details of Board Meetings held during FY 2020-2021 are The evaluation exercise has been carried out by the Board on the top fifteen firms in India. Mrs. Bharucha has been ranked by as outlined below: basis of Evaluation template for Board, Independent Director, Askaran Agarwala is a Non-Executive Director of our Company Chambers Global, Legal 500 and Who’s Who Legal amongst Non-Executive Director, Executive Directors, Committees and and was appointed on the Board in 1998. He is a Trustee of India’s leading lawyers. She chairs the transactions practice at Date of Board Meeting City No. of Directors Present Chairman of the Board. The template had various questions several organisations including Sarla Basant Birla Param Bharucha & Partners. Her core areas of expertise are mergers June 12, 2020 Mumbai 12 out of 12 to be replied by the directors on aforesaid parameters. The Bhakti Trust, Aditya Vikram Birla Memorial Trust, The Aditya and acquisitions, joint ventures, private equity, banking and August 14, 2020 Mumbai 11 out of 12 Nomination and Remuneration Committee evaluated the Birla Foundation, Ladsaria Charitable & welfare Trust and finance. performance on the basis of response received from the Hellen Keller Institute of the Deaf and Blind. He holds a degree November 10, 2020 Mumbai 12 out of 12 Anant Maheshwari is presently President, Microsoft India. Directors. Similarly, the Independent Directors evaluated the in Commerce and Law of Calcutta University and is fellow December 07, 2020 Mumbai 12 out of 12 Prior to this he has worked with Honeywell Inc and McKinsey performance of Non Independent Directors, Chairman and member of the Institute of Chartered Accountants of India. & Co. He currently chairs CII IT & ITeS committee and is a February 10, 2021 Mumbai 12 out of 12 assessed the quality, quantity and flow of information between Mr. Sudhir Mital is a Non-Executive Director and Independent member of NASSCOM Exec Council. His career spans across February 22, 2021 Mumbai 12 out of 12 the Company, Management and the Board.

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Outcome of the evaluation exercise: COMMITTEES OF THE BOARD OF DIRECTORS (2) Recommendation for appointment, remuneration and (13) Reviewing the adequacy of internal audit function, if any, terms of appointment of auditors of the listed entity; including the structure of the internal audit department, 1. The Board as a whole perform satisfactorily. The Board has constituted following Committees of Directors to deal with matters and monitor the activities falling within staffing and seniority of the official heading the (3) Approval of payment to statutory auditors for any other 2. Independent Directors are rated high in understanding the the respective terms of reference:- department, reporting structure coverage and frequency Company’s business and expressing their view during the services rendered by the statutory auditors; of internal audit; Board Meeting. AUDIT COMMITTEE (4) Reviewing, with the management, the annual financial (14) Discussion with internal auditors of any significant findings 3. The Non-Executive Director scored well in all aspects. Constitution of Audit Committee and its functions statements and auditor’s report thereon before submission and follow up there on; Your Company has an Audit Committee at the Board level which to the board for approval, with particular reference to: 4. Directors rated Executive Directors as action oriented and acts as a link between the Management, the Statutory and (15) Reviewing the findings of any internal investigations by good in implementing Board decisions. the Internal Auditors and the Board of Directors and oversees (a) Matters required to be included in the Director’s the internal auditors into matters where there is suspected Responsibility Statement to be included in the 5. Board members rated high to the Chairman leading the the financial reporting process. The Committee is governed fraud or irregularity or a failure of internal control systems Board’s Report in terms of clause (c) of sub section board effectively. by a Charter which is line with the regulatory requirements of a material nature and reporting the matter to the board; (3) of Section 134 of the Companies Act, 2013; mandated by the Companies Act, 2013 and Listing Regulations. 6. Board members has shown satisfaction in functioning of (16) Discussion with Statutory Auditors before the audit the Committees. The Committee comprises of three Non-Executive Directors, (b) Changes, if any, in accounting policies and practices commences, about the nature and scope of audit as well all of whom are Independent Directors. The followings are the and reasons for the same; as post-audit discussion to ascertain any area of concern; members of Audit Committee: INDEPENDENT DIRECTOR’S MEETING (c) Major accounting entries involving estimates based (17) To look into the reasons for substantial defaults in During the year under review, the Independent Directors Mr. K.N. Bhandari – Chairman on the exercise of judgment by management; the payment to the depositors, debenture holders, met without the presence of Non Independent Directors and shareholders (in case of non-payment of declared Mr. Y.P. Dandiwala – Member (d) Significant adjustments made in the financial members of the management inter alia to discuss: dividends) and creditors; statements arising out of audit findings; • Evaluate the performance of Non Independent Directors Dr. Vikas Balia – Member (18) To review the functioning of the whistle blower and the Board of Directors as a whole. Mr. Anil Malik, Company Secretary also acts as Secretary to (e) Compliance with listing and other legal requirements mechanism; relating to financial statements; • Evaluate the performance of the Chairman, taking into the Committee (19) Approval of appointment of Chief Financial Officer after account the views of Executive and Non-Executive During the year, the Audit Committee met 5 times i.e on June 12, (f) Disclosure of any related party transactions; Directors. 2020, August 14, 2020, October 09, 2020 , November 10, 2020 assessing the qualifications, experience and background, (g) Modified opinion(s) in the draft audit report; etc. of the candidate; • Evaluate the quality, content and timelines of flow of and February 10, 2021 to deliberate on various matters. The attendance of each Audit Committee members are as follows: information between the Management and the Board that (5) Reviewing, with the management, the quarterly financial (20) Carrying out any other function as is mentioned in the is necessary for the Board to effectively and reasonably statements before submission to the board for approval; terms of reference of the Audit Committee; perform its duties Name of the Director No. of Meetings No. of Meetings held Attended (6) Reviewing, with the management, the statement of uses/ (21) Reviewing the utilisation of the loans and / or advances The Independent Directors expressed satisfaction on the Mr. K. N. Bhandari 5 5 application of funds raised through an issue (public issue, from / investments by the Holding Company in the overall performance of the Directors and the Board as a whole. rights issue, preferential issue, etc.), the statement of subsidiary exceeding ` 100 crore or 10% of the asset size Mr. Y. P. Dandiwala 5 5 In the opinion of the Board, the Independent Directors fulfil all funds utilized for purposes other than those stated in of the subsidiary, whichever is lower including existing the conditions specified in the Listing Regulations as amended Dr. Vikas Balia 5 5 the offer document / prospectus / notice and the report loans / advances/ investments existing as on April 01, and are independent of the management. submitted by the monitoring agency monitoring the 2019. 1. The Chairman of the Audit Committee, Mr. K. N. Bhandari utilisation of proceeds of a public or rights issue, and FAMILIARISATION PROGRAMME FOR was present at the last Annual General Meeting of your making appropriate recommendations to the board to B. The audit committee reviews the following information: Company held on September 10, 2020. take up steps in this matter; INDEPENDENT DIRECTORS (1) Management Discussion and Analysis of financial 2. The Managing Director, Whole-Time Director and CFO, All new Independent Directors inducted on the Board are given (7) Reviewing and monitoring the auditor’s independence condition and results of operations; a letter of appointment setting out their roles, functions, duties the representative of the Statutory Auditor, Head of and performance, and effectiveness of audit process; and responsibilities. the Internal Audit are permanent invitees of the Audit (2) Statement of significant related party transactions (8) Approval or any subsequent modification of transactions Committee. The representative of the Cost Auditors (as defined by the audit committee), submitted by The Directors are familiarized with your Company’s Business of the listed entity with related parties; are invited to the Audit Committee Meetings whenever management; and its operations. Interactions are held between the Directors matters relating to cost audit is considered. (9) Scrutiny of inter-corporate loans and investments; and Senior Management of your Company. Directors are (3) Management letters / letters of internal control 3. Mr. Anil Malik, Company Secretary, acted as Secretary to familiarized with organizational set-up, functioning of (10) Valuation of undertakings or assets of the listed entity, weaknesses issued by the Statutory Auditors; various department, internal control processes and relevant the Committee. wherever it is necessary; information pertaining to your Company. They are periodically (4) Internal audit reports relating to internal control updated on industry scenario, changes in regulatory framework Role of Audit Committee: (11) Evaluation of internal financial controls and risk weaknesses; and and the impact thereof on the working of your Company. management systems; (1) Oversight of the listed entity’s financial reporting process (5) The appointment, removal and terms of remuneration of The details on the Company’s Familiarization Programme for and the disclosure of its financial information to ensure (12) Reviewing, with the management, performance of the Chief Internal Auditor; Independent Directors can be accessed at: http://hindalco. that the financial statement is correct, sufficient and statutory and internal auditors, adequacy of the internal com/about-us/management-team/board-of-directors. credible; control systems; (6) Statement of deviations:

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(a) Quarterly statement of deviation(s) including report The Company’s shares are compulsorily traded and i.e on June 12, 2020, August 14, 2020, November 10, 2020 and RISK MANAGEMENT COMMITTEE of monitoring agency, if applicable, submitted to delivered in the dematerialised form in all Stock February 10, 2021 to deliberate on various matters referred The Company has a robust risk management framework to Stock Exchange(s) in terms of Regulation 32(1) of the Exchanges. To expedite the transfer in the physical above. The details of attendance of the members is as identify, monitor and minimize risk as also identify business Listing Regulations. segment, necessary authority has been delegated to below: responsibilities. certain officers, who are authorised to transfer up to (b) Annual statement of funds utilized for purposes other 10,000 shares under one transfer deed. Name of the Director No. of No. of Meetings Your Company has comprehensive Risk Management than those stated in the offer document/prospectus/ Meetings Attended Policy. The following are the Members of Risk Management notice in terms of Regulation 32(7) of the Listing Number of shareholders complaints received so far/ Committee: Mr. K. N. Bhandari 4 4 Regulations. number not solved to the satisfaction of shareholders/ • Mr. A.K. Agarwala – Chairman number of pending complaints Mr. K. M. Birla 4 4 • Mr. Satish Pai – Member STAKEHOLDER’S RELATIONSHIP COMMITTEE Mr. Y. P. Dandiwala 4 4 Details of complaints received, disposed off and pending • Mr. D. Bhattacharya – Member The Company has a “Stakeholder’s Relationship Committee” during the year, number of shares transferred during the at the Board level to specifically look into various aspects of • Mr. Praveen Kumar Maheshwari – Member year, time taken for affecting these transfers and the CORPORATE SOCIAL RESPONSIBILITY interests of shareholders, debenture holders and other security number of share transfers pending are furnished in the • Mr. Anil Arya * – Member holders. “Shareholder Information” section of this Annual Report. COMMITTEE (CSR) • Mr. Vikram Sondhi – Member The Corporate Social Responsibility Committee comprises of • Mr. Anil Mathew – Member The role of the committee is to specifically look into various the following members: aspects of interest of shareholders, debenture holders and NOMINATION AND REMUNERATION COMMITTEE Mrs. Rajashree Birla – Chairman Mr. Anil Malik, Company Secretary is Compliance Officer of the other security holders including: The Board has formed a Nomination and Remuneration Risk Management and also acts as Secretary to the Committee. Committee consisting of the following members: Mr. Satish Pai – Member *Mr. Anil Arya was inducted in the Risk Management Committee at 1. Resolving the grievances of the security holder of the Mr. A.K. Agarwala – Member Company including complaints related to transfer/ Mr. K. N. Bhandari – Chairman the Board Meeting held on June 12, 2020. Mr.D. Bhattacharya – Member transmission of shares, non-receipt of Annual Reports Mr. Kumar Mangalam Birla – Member During the year under review, the Committee met four times i.e non-receipts of declared dividends issue of new/ duplicate Mr. Y. P. Dandiwala – Member Mr. Y. P. Dandiwala – Member on April 09, 2020, July 07, 2020, October 08, 2020 and January Certificate, General Meetings etc. Dr. Mrs. Pragnya Ram: Group Executive President: Corporate 08, 2021 to deliberate on various matters. Details of attendance Mr. Anil Malik, Company Secretary also acts as Secretary to Communications and CSR is a permanent invitee to the by Directors for the Committee meetings are as follows: 2. Review of measures taken for effective exercise of voting the Committee Committee. rights by shareholders. Name of the Director / No. of No. of Meetings As per Section 178 of Companies Act, 2013 and Regulation 19 Mr. Anil Malik, Company Secretary also acts as Secretary to Member Meetings Attended 3. Review of various measures and initiatives taken by of Listing Regulations, the terms of reference are as follows: the Committee. the listed entity for reducing the quantum of unclaimed Mr. A. K. Agarwala 4 4 dividends and ensuring timely receipt of dividend • Identify persons who are qualified to become Directors The terms of reference of Corporate Social Responsibility Mr. Satish Pai 4 4 and who may be appointed in Senior Management and Committee broadly comprises of following: warrants/ annual reports/ statutory notices by the Mr. D. Bhattacharya 4 4 shareholders of the Company. recommend to the Board their appointment and removal. (a) Formulate and Recommend CSR Policy to the Board Mr. Praveen Kumar Maheshwari 4 4 • Formulation of criteria for evaluation of performance of indicating the activities to be undertaken by the Company The following are the members of the Committee: Mr. Anil Arya 3 1 Independent Directors and the Board. as specified in Schedule VII of Companies Act, 2013 and monitor the policy from time to time. Mr. Anil Mathew 4 4 Mr. K. N. Bhandari – Chairman • Carry out evaluation of every Director’s performance. Mr. Vikram Sondhi 4 4 Mr. A. K. Agarwala – Member (b) Recommend the amount of expenditure to be incurred • Formulate the criteria for determining qualifications, on the activities referred to in clause(a). Mr. Satish Pai – Member positive attributes and independence of a Director. Non-Executive Director’s Compensation and Disclosure (c) Formulate and recommend to the Board, an annual action Mr. Anil Malik, Company Secretary, is the Compliance • Recommend to the Board a policy, relating to the All fees/compensation including sitting fee paid to the Non- plan pursuant to the CSR Policy. officer and acts as secretary to the Committee. remuneration for the Directors, Key Managerial Personnel Executive Directors of the Company are fixed by Board of and other employees. During the year under review, the Committee met once i.e. on Directors within the limits approved by the shareholders. During the year under review, the Committee met four June 10, 2020 to deliberate on various matters referred above. Details of sitting fees/compensation paid including stock • Devise a policy on Board diversity. times i.e on June 10, 2020, August 13, 2020, November 05, The details of attendance of the members is as below: options, if any, to them are given at the respective places in 2020 and February 4, 2021 to deliberate on various matters • Whether to extend or continue the term of appointment the report. referred above. Details of attendance by Directors for the of Independent Director on the basis of report of Name of the Director No. of No. of Meetings Remuneration of Directors and Others Committee meetings are as follows: performance evaluation of Independent Director. Meetings Attended Your Company has two Executive Directors, the Board • Recommend to the board, all remuneration, in whatever Smt. Rajashree Birla 1 1 Name of the Director No. of No. of Meetings of Directors decides the remuneration of the Managing form, payable to senior management. Meetings Attended Mr. Satish Pai 1 1 Director and Whole-Time Director on the recommendation of Mr. K. N. Bhandari 4 4 The scope and functions of the Committee is in accordance Mr. D. Bhattacharya 1 1 Nomination and Remuneration Committee. with the provisions of the Companies Act, 2013 and Listing The Company has a system where all the Directors or Senior Mr. A. K. Agarwala 4 4 Regulations. Mr. A K Agarwala 1 1 Management of the Company are required to disclose all Mr. Satish Pai 4 4 Mr. Y. P. Dandiwala 1 1 During the year under review, the Committee met four times pecuniary relationship or transactions with the Company.

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There were no pecuniary relationships or transactions given by the shareholders at the Annual General Meeting held (b) Paid to Executive Directors between your Company and Non-Executive Director during on September 24, 2014 to pay Commission not exceeding Remuneration for the year 2020-21 the year. 1% of the net profits of the Company to the Non-Executive Directors of the Company. The amount of commission payable Executive Director Relationship All elements of Fixed component & Service contracts, Stock option Besides sitting fees ` 50,000/- per meeting of the Board, with other remuneration performance linked notice period, details, if any is determined after assigning weightage to attendance and the ` 25,000/- per meeting of the Audit Committee and Directors package i.e., salary, incentives, along severance fee ` 20,000/- per meeting for any other Committee thereof, type of meeting and other responsibilities. benefits, bonuses, with performance the Company also pays Commission to the Non-Executive Executive Directors are paid remuneration within the limits pension etc. criteria Directors. envisaged under Section 197, Schedule V of Companies Act, Mr. Satish Pai None ` 17,14,43,076 ` 7,48,73,000 See Note (b) See Note (c) ` 2013. The said remuneration is approved by the Board as well (Managing Director) For FY 2020-21, the Board has approved payment of 6.00 See Note (a), (e) crore (previous year ` 2.20 crores) as Commission to the Non- as shareholders of the Company. Executive Directors of the Company pursuant to the authority Mr. Praveen Kumar Maheshwari None ` 3,78,75,427 — See Note (b) See note (d) (Whole-Time Director) See Note (e) The details of Remuneration package, fees paid etc. to Directors for the year ended March 31, 2021: (a) Non-Executive Directors: (a) Mr. Satish Pai Managing Director was paid a sum of (e) Remuneration excludes amortisation of fair value of ` Name of Director Sitting Fees Paid Commission payable Total Payments Paid / Payable in 2020-21 7,48,73,000 towards performance bonus linked to employee share based payments under Ind AS 102 achievement of targets for FY 2019-2020. and liabilities for defined benefit plans provided on (` In Lakhs) (` in Lakhs) (` in Lakhs) actuarial basis. Mr. Kumar Mangalam Birla1, 2 3.80 - 3.80 (b) The appointment is subject to termination by three months notice in writing on either side. No severance All Directors have disclosed their shareholding in the Company. Mrs. Rajashree Birla2 3.20 298.15 301.35 fee is payable to the Managing Director or Whole- None of the Directors are holding any debentures or any Mr. A. K. Agarwala 5.40 33.94 39.34 Time Director. other convertibles of the Company. Details of shareholding of 6 Mr. D. Bhattacharya 4.60 30.56 35.16 (c) 782,609 Stock Options were granted on October 09, Directors as on March 31, 2021 are as follows: Mr. Anant Maheshwari7 2.00 18.66 20.66 2013 to Mr. Satish Pai. These Stock Options are vested Name of the Directors Shares (` 1 paid up) Mr. K. N. Bhandari 5.85 53.94 59.79 25% each year over a period of 4 years from the date of grant. In addition, he has been granted 956,522 Mr. Kumar Mangalam Birla* 901,635 Mr. Ram Charan8 0.50 4.58 5.08 Stock Appreciation Rights (SARs), of which Mr. Pai Mrs. Rajashree Birla 612,470 Mrs. Alka Bharucha 3.00 34.82 37.82 had exercised 478,261 SARs during the year FY 2018- Mr. A. K. Agarwala 116,148 Mr. Y. P. Dandiwala 5.65 50.25 55.90 19 and balance 478,261 SARs were exercised during Mr. D. Bhattacharya 1,571,937 Dr. Vikas Balia 4.25 47.28 51.53 FY 2019-20.Further, 1,985,292 and 264,704 Stock Options along with 466,805 and 62,241 Restricted Mr. K. N. Bhandari 5,071 Mr. Sudhir Mital 3.00 27.82 30.82 Stock Units (RSUs) have been granted during FY Mr. Y. P. Dandiwala 206 Notes: 2018-19 and FY 2019-20 respectively. These Stock Mrs. Alka Bharucha NIL 1. Mr. Kumar Mangalam Birla assumed the role of Executive Chairman of Aditya Birla Management Corporation Private Limited w.e.f. January 01, 2019. Options are vested 25% each year over a period of Accordingly he would not like to receive any commission from your Company w.e.f. January 01, 2019. 4 years from the date of grant and RSUs are vested Mr. Satish Pai 421,305 2. No Director is related to any other Director on the Board, except Mr. Kumar Mangalam Birla and Mrs. Rajashree Birla, who are son and mother respectively. at the end of 3 years from date of grant. During Mr. Praveen Kumar Maheshwari 36,297 3. Your Company has a policy of not advancing any loan to its Directors except to Executive Director in the course of normal employment. FY 2019-20, Mr. Satish Pai has exercised 325,653 Dr. Vikas Balia 325 4. The Company has obtained shareholders’ approval for payment of commission to its Non-Executive Directors & Independent Directors, not exceeding Stock Options.During FY 2020-21, Mr. Satish Pai has 1% of Net Profit of the Company. Mr. Sudhir Mital NIL exercised 65,652 Stock Options. 5. Stock Options were not granted to any Non-Executive Directors. Mr. Anant Maheshwari NIL 6. In addition to above, the Board approved pension of Mr. D. Bhattacharya of ` 0.335 crore per month and other post-employment benefits for his past (d) 55,630 Stock Options were granted on October service when he was the Managing Director of the Company. The present value of the above pension liability determined based on the actuarial valuation 09, 2013 to Mr. Praveen Kumar Maheshwari. These *Additionally he holds 648,632 equity shares as Karta of Aditya Vikram Kumar is accounted by the Company in its financial statements. Amount charged as expenses in the statement of profit and loss during the year towards such Mangalam Birla HUF. post-employment benefit amounting to ` 3 crore has been disclosed as a part of managerial remuneration above, and does not include the impact of Stock Options are vested 25% each year over a actuarial losses recognised in other comprehensive income amounting to ` 1 crore. period of 4 years from the date of grant. Mr. Praveen Code of Conduct 7. Mr. Anant Maheshwari (DIN: 02963839) has been appointed as an Independent Director w.e.f August 14, 2020. Kumar Maheshwari was also granted 55,667 RSU on 8. Mr. Ram Charan (DIN :03464530 ) has resigned as Independent Director w.ef August 14, 2020 due to age and personal reasons. October 09, 2013 which are vested after expiry of 3 The Hindalco Code of Conduct, as adopted by the Board of years from the date of grant. Further, 119,116 Stock Directors, is applicable to all Directors, Senior Management of Options and 28,008 RSUs has been granted during the Company. The Code is available on the Company’s website FY 2018-19. These Stock Options are vested 25% viz: http://www.hindalco.com/upload/pdf/hindalco-code-of- each year over a period of 4 years from the date conduct-BODs-SMP.pdf of grant and RSUs are vested at the end of 3 years from date of grant. During FY 2019-20, Mr. Praveen For the year under review, all Directors and Senior Management Kumar Maheshwari has exercised 111,297 Stock personnel of the Company have confirmed their adherence to Options .During the year FY 2020-21, no stock options the provisions of the said Code. were exercised by Mr. Praveen Kumar Maheshwari Declaration as required under Regulation 26(3) of the Listing however he has been granted 29,779 stock options. Regulations.

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We hereby confirm that all Directors and Senior Management (B) Non Compliances/Strictures/penalties Imposed (` in crore) nationality, disability etc. All women associates (permanent, have affirmed compliance with Code of Conduct for the No Non Compliance/strictures/penalties have been Price Other member temporary, contractual and trainees) as well as any women financial year ended March 31, 2021. imposed on the Company by Stock Exchange(s) or SEBI or Waterhouse & firms of Price visiting the Company’s office premises or women service any Statutory Authority on any matters related to capital Co Chartered Waterhouse providers are covered under this policy. All employees are Satish Pai markets during the last three years. Accountants Coopers global treated with dignity with a view to maintain a work environment Place : Mumbai Managing Director LLP* network of free of sexual harassment whether physical, verbal or (C) Disclosure of Accounting Treatment Date: July 2, 2021 DIN: [06646758] firms* psychological. Your Company has followed all relevant Accounting Statutory audit and 4.63 81.31 Standards while preparing the Financial Statements. Limited Review The Details of complaints filed, disposed and pending during the FY 2020-21 is as given below: Audit of special 0.17 - CODE OF CONDUCT FOR PREVENTION OF (D) Risk Management purpose financial Number of Number of Number of INSIDER TRADING Risk evaluation and management is an ongoing process statements of certain complaints complaints complaints In terms of the provisions of the Securities and Exchange within the organisation. Your Company has comprehensive foreign subsidiaries filed during the disposed of during pending as at end of Board of India (Prohibition of Insider Trading) Regulations, Risk Management Policy and it is periodically reviewed Tax and Transfer - 1.26 financial year the financial year the financial year 2015, as amended, your Company has adopted a ‘Code of by the Board of Directors. pricing services Conduct to regulate, monitor and report trading by designated 3 1 2 Subscription to - persons in listed or proposed to be listed securities’ of your (E) Proceeds from public issues, right issues, preferential knowledge tools 0.03 Company (“the Code”). The Code aims at preserving and issues etc: CEO/CFO Certification preventing misuse of unpublished price sensitive information. During the year under review, the Company has not Audit related services – 0.24 0.81 Certifications The Managing Director and CFO have certified to the Board All Designated Persons (including Directors, Key Managerial raised any proceeds from public issues, right issues or that: Personnel and Employees) of your Company are covered under preferential issues. Total 5.04 83.41 the Code, which provides inter alia for periodical disclosures A. They have reviewed Financial Statements and the Cash * Excluding taxes and out of pocket expenses. and obtaining pre-clearances for trading in securities of your (F) Remuneration of Directors Flow Statement for the year and that to the best of their knowledge and belief: Company. This is included separately in this Section. Whistle Blower Policy 1. these statements do not contain any materially The Company promotes ethical behaviour in all its business (G) Management untrue statement or omit any material fact or contain SUBSIDIARY COMPANIES activities and has put in place a mechanism for reporting illegal The Company has adopted a policy for determining ‘material’ Management Discussion and Analysis Report is prepared statements that might be misleading; in accordance with the requirements laid out under and unethical behaviour. The Company has a Vigil Mechanism subsidiaries and the policy can be accessed on your Company’s and Whistle Blower Policy under which employees are free to 2. these statements together present a true and fair website viz: http://www.hindalco.com/upload/pdf/hil-policy- Listing Regulations forms part of Integrated Annual report violations of applicable laws and regulations and Code view of the Company’s affairs and are in compliance on-material-subsidiary.pdf Report. No material transaction has been entered into by the Company with the Promoters, Directors or the of Conduct. The whistle blower may send the complaint to the with existing Accounting Standards, applicable laws The Company is in compliance with the requirements of Management, their subsidiaries or relatives, etc., that may independent reporting mechanism - Ethics Hotline or to the and regulations. Regulation 24 of Listing Regulations with respective Corporate respective Values Standards Committee (VSC), depending on have a potential conflict with interests of the Company. B. There are, to the best of their knowledge and belief, no Governance for its subsidiary companies. the level at which the violation is perceived to be happening, transactions entered into by the Company during the year (H) Shareholders or the seniority of the individual/s involved. Employees may which are fraudulent, illegal or violative of the Company’s DISCLOSURES (i) The Company has provided the details of Directors also report to the Chairman of the Audit Committee. During code of conduct. (A) Related Party Transactions seeking appointment/re-appointment in the Annual the year under review, no employee was denied access to the C. They accept responsibility for establishing and maintaining All the related party transactions are strictly done on General Meeting Notice attached with this Annual Audit Committee. internal controls for financial reporting and that they have arm’s length basis. The Company places all the relevant Report. We have a Code of Conduct, Vigil Mechanism and Whistle- evaluated the effectiveness of internal control systems of details of a related party transaction, entered in the (ii) Quarterly Presentations on the Company results Blower Policy, and Supplier Code of Conduct in place through the Company pertaining to financial reporting and they normal course of business, before the Audit Committee are available on the website of the Company (www. which we promote ethical behaviour in all our business have disclosed to the Auditors and the Audit Committee, from time to time. There was no material related party hindalco.com) and the Aditya Birla Group website activities. Our Code, policies and standards promote ethical deficiencies in the design or operation of such internal transaction, which are not in the normal course of the (www.adityabirla.com). behaviour which helps to prevent /detect any violation of our controls, if any, of which they are aware and the steps they business, entered into by the Company during the year. Code of Conduct. have taken or propose to take to rectify these deficiencies. Attention of the Members is drawn to the disclosures of (iii) (I) Details of total fees paid to Statutory Auditor transactions with the related parties set out in Notes to During the FY 2020-21, the total fees charged for audit, Prevention of Sexual Harassment D. They have indicated to the Auditors and the Audit Accounts forming part of the Financial Statements. The audit related services and non-assurance services Committee: Board of Directors have approved and adopted a policy Your Company has zero tolerance for sexual harassment at provided by Price Waterhouse & Co Chartered 1. that there were no significant changes in internal on Related Party Transactions and the same has been workplace and has adopted a Policy on prevention, prohibition Accountants LLP (FRN 304026E/ E300009) and other control over financial reporting during the year; uploaded on the website of the Company at http://www. member firms of PricewaterhouseCoopers global and redressal of sexual harassment at workplace in line with the hindalco.com/investor-centre/policies. network of firms to the Company and its subsidiaries provisions of the Sexual Harassment of Women at Workplace 2. that there were no significant changes in accounting on a consolidated basis is as follows: (Prevention, Prohibition and Redressal) Act, 2013 and the Rules policies during the year and that the same have been thereunder for prevention and redressal of complaints of sexual disclosed in the notes to the Financial Statements; harassment at workplace. and The Company is committed to providing equal opportunities 3. instances of significant fraud of which they have without regard to their race, caste, sex, religion, colour, become aware and the involvement therein, if any, of

238 239 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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the management or an employee having a significant In our opinion and to the best of our knowledge and based GENERAL BODY MEETINGS MEANS OF COMMUNICATION role in the Company’s internal control system over on such examination as well as information and explanations Details of Annual General Meetings • Quarterly Results: financial reporting. furnished to us, which to the best of our knowledge and belief Location and time, where Annual General Meetings (AGMs) in were necessary for the purpose of issue of this certificate and the last three years were held:- Newspaper Cities of Publication REPORT ON CORPORATE GOVERNANCE based on such verification as considered necessary, we hereby Business Standard (English) All editions Year AGM Location Date Time Your Company has complied with Corporate Governance certify that none of the Directors stated below who are on Navshakti (Marathi) Mumbai Edition only the Board of the Company as on 31st March 2021 have been 2019-20 AGM By videocon September 3.00 p.m requirements specified under Regulations 17 to 27 and clause Any website, where displayed: (b) to (i) of sub regulation (2) of Regulation 46 of the Listing debarred or disqualified from being appointed or continuing ferencing 10, 2020 Regulations. as Directors of the Companies by Securities Exchange Board Mumbai www.hindalco.com of India or The Ministry of Corporate Affairs or any such other 2018-19 AGM Nehru Centre August 30, 3.00 p.m www.adityabirla.com Auditorium 2019 COMPLIANCE statutory authority. • Whether the Company Website displays: I. A certificate from the Statutory Auditors confirming 2 0 1 7 - 1 8 AGM Ravindra September 3.00 p.m compliance with the conditions of Corporate Governance S. Name of the Director DIN Date of Natya Mandir 21, 2018 â All official news releases Yes No. Appointment in as stipulated in Listing Regulations forms part of â Presentation made to Institutional Yes the Company* In the last three years special resolution as set out in the Integrated Annual Report. respective notices for AGM’s were passed by shareholders. Investors/Analysts 1 Kumar Mangalam Birla 00012813 16/11/1992 II. A Certificate by Company Secretary in practice that 2 Rajashree Birla 00022995 15/03/1996 Whether any special resolution passed last year through postal General Shareholder Information none of the directors have been debarred or disqualified 3 Aksaran Agarwala 00023684 11/09/1998 ballot? No The same is provided in the ‘Shareholder Information’ section. from being appointed for continuing as directors in the companies by the Board/Ministry of Corporate Affairs 4 Kailash Nath Bhandari 00026078 30/01/2006 Person who conducted the postal exercise: Not Applicable Status of compliance of Non mandatory requirement 5 Debnarayan Bhattacharya 00033553 01/10/2008 or any such statutory authority forms part of Integrated Whether any special resolution is proposed to be conducted 1. The Company maintains a separate office for the Non- Annual Report as below:- 6 Alka Marezban Bharucha 00114067 11/07/2018 through postal ballot: No Executive Chairman. All necessary infrastructure including 7 Praveen Kumar Maheshwari 00174361 28/05/2016 vehicles for business purpose and assistance are available CERTIFICATE 8 Yazdi Piroj Dandiwala 01055000 14/08/2015 to enable him discharge his responsibilities effectively. Pursuant to regulation 34(3) and Schedule V Para 9 Ram Charan** 03464530 12/02/2011 2. During the period under review, there is no audit C clause (10)(i) of the SEBI (Listing Obligations and 10 Vikas Balia 00424524 19/07/2019 qualification in the financial statement. Disclosure Requirements) Regulations, 2015 (“SEBI Listing 11 Satish Pai 06646758 13/08/2013 Regulations”) 3. The post of the Non-Executive Chairman of the Board is 12 Sudhir Mital 08314675 11/11/2019 separate from that of the Managing Director/CEO. To 13 Anant Maheshwari 02963839 14/08/2020 4. The Company has engaged internal auditors for aluminium The Members *Date of Appointment is the date which is reflected on MCA portal. and copper business separately and their report is th Hindalco Industries Limited ** Resignation of Mr. Ram Charan as an Independent Director, w.e.f. 14 reviewed by the Audit Committee. Ahura Centre, 1st Floor, August, 2020 B Wing Mahakali Caves Road, Mumbai – 400093 Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management We have examined the relevant books, papers, minutes books, of the Company. Our responsibility is to express an opinion forms and returns filed, Notices received from the Directors on these based on our verification. This certificate is neither during the financial Year 2020-21, and other records maintained an assurance as to the future viability of the Company nor of by the Company and also the information provided by the the efficiency or effectiveness with which the management has Company, its officers, agents and authorised representatives of conducted the affairs of the Company. Hindalco Industries Limited, CIN.: L27020MH1958PLC011238 (hereinafter called the ‘Company’) having its Registered office For BNP & Associates at Ahura Centre, 1st Floor, B Wing Mahakali Caves Road, Company Secretaries Mumbai – 400093 for the purpose of issue of a Certificate, [Firm Regn. No. P2014MH037400] in accordance with Regulation 34 (3) read with Schedule V Para-C Sub clause 10 (i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) 2015 B Narasimhan (LODR), as amended vide notification no [SEBI/LAD/NRO/ Partner GN/2018/10 dated May 9, 2018 issued by SEBI. Dated : 07.06.2021 FCS No : 1303 COP No.: 10440 Place : Mumbai UDIN: F001303C000427443

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Auditor’s Certificate regarding compliance of conditions of Corporate Governance 1. Annual General Meeting - Date and Time : 23rd August, 2021 at 3:00 p.m. To the Members of Hindalco Industries Limited In our opinion and to the best of our information and according - Mode : Video conferencing (VC) / to the explanations given to us, we certify that the Company Other audio visual means (OAVM) We have examined the compliance of conditions of Corporate has complied with the conditions of Corporate Governance as 2. Financial Year : April 1, 2020 to March 31, 2021 Governance by Hindalco Industries Limited (“the Company”), stipulated in the SEBI Listing Regulations, 2015. Financial calendar for the year ended March 31, 2021 as stipulated in Regulations Board Meetings for approval of : Tentative Dates 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 27 and clauses (b) We state that such compliance is neither an assurance as - Financial results for the quarter ending June 30, 2021 : On or before 14th August, 2021 to (i) of sub-regulation (2) of regulation 46 and para C , D and to the future viability of the Company nor the efficiency or - Financial results for the half year ending : On or before 14th November, 2021 E of Schedule V of the Securities and Exchange Board of India effectiveness with which the management has conducted the September 30, 2021 (Listing Obligations and Disclosure Requirements) Regulations, affairs of the Company. - Financial results for the quarter ending : On or before 14th February, 2022 2015 (as amended) (collectively referred to as “SEBI Listing December 31, 2021 Regulations, 2015”). - Financial results for the year ending March 31, 2022 : On or before 30th May, 2022 (Audited) The compliance of conditions of Corporate Governance - Annual General Meeting for the year ended is the responsibility of the Company’s management. Our For Price Waterhouse & Co Chartered Accountants LLP March 31, 2022 : On or before 31st August, 2022 examination was carried out in accordance with the Guidance Firm Registration No. 304026E/E-300009 Note on Certification of Corporate Governance, issued by the 3. Date of Book Closure : 17th August, 2021 to 23rd August, 2021 Institute of Chartered Accountants of India and was limited (both days inclusive) to procedures and implementation thereof, adopted by the 4. Dividend Payment Date : On or after 23rd August, 2021 Company for ensuring the compliance of the conditions of Place: Mumbai Sumit Seth 5. Registered Office : Ahura Centre, 1st Floor, Corporate Governance. It is neither an audit nor an expression Date: July 2, 2021 Partner B Wing, Mahakali Caves Road, of opinion on the financial statements of the Company. UDIN: 21105869AAAAAW4459 Membership No: 105869 Andheri (East), Mumbai - 400 093. Tel: (91-22) 66917000 Fax: (91-22) 66917001 E-Mail: [email protected] Website: www.hindalco.com CIN No. L27020MH1958PLC011238 6. a. Listing Details:

Equity Shares Global Depository Receipts Non-Convertible Debentures (GDRs) BSE Limited Luxembourg Stock Exchange National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers 35 A Boulevard Joseph II ”Exchange Plaza”, Dalal Street, Mumbai - 400 001. L-1840 Luxembourg Bandra Kurla Complex Bandra (East), Mumbai - 400 051. National Stock Exchange of India Limited ”Exchange Plaza”, Bandra Kurla Complex Bandra (East), Mumbai - 400 051. Note: Listing fees has been paid to all the Stock Exchanges as per their Schedule.

b. Overseas Depository for GDRs : J.P. Morgan Chase Bank N.A. P.O. Box 64504 St. Paul, MN 55164-0504 [email protected] c. Domestic Custodian of GDRs : Citibank N.A. Custody Services FIFC , 11th Floor, C54 & 55 , G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 098 Tel.: 91-22- 61756895 Fax: 91-22-26532205

242 243 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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7. ISIN : Fully paid up equity share: ISIN INE038A01020 12. Stock Performance: GDR: ISIN US4330641022 CUSIP No. 433064300 Stock Performance Vs Sensex 8. Details of Debenture issued:

Interest Payment Date Interest Series Date of allotment Tenure Record Date ISIN No. 400 350 25th April Annually 9.55% Series 25th April,2012 10 Years 7 days prior to each interest INE038A07258 (2012) –I and/or redemption payment 300 27th June Annually 9.55% Series 27th June,2012 10 Years 7 days prior to each interest INE038A07266 250 (2012) –II and/or redemption payment 200 2nd August Annually 9.60% Series 2nd August, 2012 10 Years 7 days prior to each interest INE038A07274 150 (2012)-III and/or redemption payment 100 9. Stock Code: 50

Stock Code Scrip Code 0

BSE 500440

NSE HINDALCO 01-03-2020 01-04-2020 01-05-2020 01-06-2020 01-07-2020 01-08-202001-09-2020 01-10-2020 01-11-2020 01-12-2020 01-01-2021 01-02-2021 01-03-2021 Stock Exchange Reuters Bloomberg Hindalco Sensex BSE HALC.BO HNDL IN

NSE HALC.NS NHNDL IN 13. Stock Performance over the past few years: Luxembourg Stock Exchange (GDRs) HALCg.LU HDCD LI Absolute Returns (in %) Annualised Returns (in %)

10. Name and Address of Debenture Trustee : IDBI Trusteeship Services Limited 1 YR 3 YR 5 YR 1 YR 3 YR 5 YR Asian Building, Ground Floor, 17 R. Kamani Marg Ballard Estate, Mumbai: 400 001 Hindalco 241.54 52.34 271.63 Hindalco 241.54 15.06 30.02 11. Stock Price Data: SENSEX 68.01 50.17 95.37 SENSEX 68.01 14.51 14.33 NIFTY 70.87 45.26 89.84 NIFTY 70.87 13.25 13.68 FY21 Bombay Stock Exchange National Stock Exchange Luxembourg Stock Exchange

High Low Close Volume High Low Close Volume High Low Close 14. Registrar and Transfer Agents: (In `) (In Nos) (In `) (In Nos) In US$ The Company has In-House Investors Service Department registered with SEBI as Category II Share Transfer Agent vide Mar-21 361 305 327 1,03,64,853 361 305 327 30,25,21,420 4.94 4.08 4.48 Registration no INR 000003910. Feb-21 354 227 340 2,25,18,821 355 227 340 46,48,65,247 4.84 3.52 4.60 Investors Service Department Jan-21 276 221 226 1,10,57,311 275 225 226 29,39,13,813 3.74 3.10 3.10 Hindalco Industries Limited Ahura Centre, 1st floor, B Wing Dec-20 256 223 241 2,11,40,019 256 223 241 36,19,11,496 3.48 3.12 3.28 Mahakali Caves Road Nov-20 231 168 226 1,77,20,979 231 168 226 42,57,74,333 3.14 2.36 3.04 Andheri (East), Mumbai- 400 093. Tel: (91-22) 6691 7000 Oct-20 188 165 171 91,14,710 188 165 171 31,53,17,042 2.54 2.00 2.28 Fax: (91-22) 6691 7001 Sep-20 197 155 175 98,50,965 197 154 175 38,72,67,226 2.64 2.16 2.38 E-mail: [email protected]

Aug-20 203 161 185 1,50,81,443 203 161 185 39,91,55,771 2.68 2.30 2.52 15. Share Transfer System: Jul-20 170 145 163 1,45,87,547 171 145 163 35,40,38,738 2.26 1.94 2.18 As per Regulation 40 of Listing Regulations, as amended, securities of listed companies can be transferred only in Jun-20 160 137 146 1,62,25,340 160 136 146 36,04,00,048 2.10 1.85 1.94 dematerialized form with effect from, 01st April, 2019, except in case of request received for transmission or transposition of securities. In view of this and to eliminate all risks associated with physical shares and for ease of portfolio management, May-20 141 114 139 1,33,44,728 141 114 139 34,61,07,134 1.90 1.52 1.84 members holding shares in physical form are requested to consider converting their holdings to dematerialized form. Apr-20 132 89 130 1,97,69,509 132 88 130 38,56,59,900 1.74 1.32 1.73 Members can contact the Company in case of any queries by sending email to [email protected] hence transfer in physical mode is discontinued.

244 245 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

SHAREHOLDER INFORMATION

16. Investor Services 2. Exposure of the listed entity to commodity and commodity risks faced by the entity throughout the year: a. Complaints received during the year: a. Total Exposure of the listed entity to commodities in INR in Millions : 6,10,739

Nature of complaints 2020-2021 2019-2020 b. Exposure of the entity to various commodities is as below:

Received Cleared Received Cleared Commodity Name Nature UOM Exposure in Exposure % of such exposure hedged through commodity of Risk INR towards in Quantity derivatives Relating to Transfers, Transmissions Dividend, Interest, 5 5 18 18 (Physical) the particular terms towards Redemption, Demat – Remat, Rights Issue and Change of commodity the particular Domestic Market International Market Total Address etc. (` in Million) commodity OTC Exchange OTC Exchange

. b Shares pending for transfer : Nil Aluminium Sell MT 1,91,686 12,56,380 - - 44 7 51 Furnace Oil/LSHS/LDO Buy MT 4,507 1,38,909 - - 64 - 64 17. Distribution of Shareholding: Imported Coal Buy MT 2,425 3,84,308 - - 26 - 26

DISTRIBUTION SCHEDULE AS ON MARCH 31, 2021 Coal Tar Pitch Buy bbl 2,733 4,29,486 - - 14 - 14

Sr. No. Shares from Shares To Share Holders % of Holders No. of Shares Held % of Holding RLNG Buy bbl 789 1,96,008 - - 27 - 27

1 0 1000 329,658 94.60 39,986,192 1.78 Copper Buy MT 1,66,901 3,06,877 - - 30 4 34

2 1001 2000 8,179 2.35 12,081,726 0.54 Copper Sell MT 1,69,559 3,13,980 - - 13 13 26

3 2001 5000 5,903 1.69 18,861,773 0.84 Silver (Oz) Buy T/Oz 2,972 17,60,362 - - 68 - 68

4 5001 10000 2,189 0.63 15,604,472 0.69 Silver (Oz) Sell T/Oz 5,321 31,11,488 - - 63 - 63

5 10001 50000 1,602 0.46 32,117,793 1.43 Gold (KG) Buy KG 31,056 6,939 - 97 - - 97

6 50001 100000 241 0.07 17,080,587 0.76 Gold (KG) Sell KG 32,790 6,618 - 95 - - 95

7 100001 AND ABOVE 699 0.20 2,110,951,704 93.96 Notes: i. Table above includes Exposure and % Hedges for FY 2020-21 only. Details of hedges done for future years has not been captured here. TOTAL 348,471 100 2,246,684,247 100 ii. The table above includes commodities where a liquid derivative market exists. iii. The Company has price risk on commodities where an active derivative market does not exist, like - Caustic Soda, Aluminum Fluoride, CP Coke, 18. Dematerialization of Shares and Liquidity: Alumina, Bauxite etc. These Commodities are not included in the table above. Around 98% of outstanding shares have been dematerialized. Trading in Hindalco Shares is permitted only in the iv. The Company maintains offset hedge book to eliminate the “pricing” timing mismatch for buy and sell position of Copper, Silver and Gold. dematerialized form 5th April, 1999 as per notification issued by Securities and Exchange Board of India. Accordingly, exposure of Copper, Buy position and Sell position naturally hedged is 51 % and 70 %, respectively. Further, exposure of Silver Buy position and Sell position naturally hedged is 28 % and 21 %, respectively and exposure of Gold, sell position naturally hedged is 5%. In case of Copper Buy exposure, 15%, in case of Silver Buy exposure, 4% and in case of Gold buy exposure, 3% is not hedged represents unpriced 19. Details on use of public funds obtained in 3 yrs: transactions as at March 31, 2021 as the same will be hedged as and when they are priced, as per Company’s policy. In case of copper sell exposure, 4% is unpriced transactions, Silver sell exposure, 16% is unpriced transactions as at March 31, 2021 as the same will be hedged as Not Applicable and when they are priced, as per Company’s policy. v. The Company has strategic view based exposure for Copper, Gold and Silver. However, the same is not included above as it is a small portion of the overall Copper, Gold & Silver volumes. 20. Outstanding GDR/Warrants/Convertible Bonds: vi. The Company procures part of its Alumina requirement from its 100% subsidiary, Utkal Alumina International Limited. The same is not included 151,010,943 GDRs are outstanding as on 31st March, 2021. Each GDR represents one underlying equity share. in the above table.

c. The Company faces commodity price risk on purchase of its raw material as well as on sales of its products. The 21. Commodity price risk or foreign exchange risk and hedging activities: Company categorizes its price risk in broadly 2 categories - Offset Hedge Exposure and Strategic View Based Your Company hedges its foreign currency exposure in respect of its imports and exports as per its policies. Your Company Exposure. Under the Offset Hedge Program, we use derivative products to eliminate the price risk arising due has constituted a Risk Management Committee consisting of Directors/Executives of your Company. Your Company has to timing mismatch whereas for Strategic View Based exposure, derivative instruments are used to manage the commodity/foreign exchange hedging from time to time considering various factors as per the policy of the Company. price risk for future tenor. Hedging is done for commodities where an active derivative market exists. The details as required under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 is as below: 1. Risk management policy of the listed entity with respect to commodities including through hedging. The Company has a Risk Management Policy for Managing its Commodity Price Risk. The Policy captures the Objectives of Commodity Risk Management and the Treatment of Different Types of Exposures. The Policy lists down the Hedging Instruments that can be used, the Hedge Coverage ratios for different tenors and also mentions the Risk Management Structure at the Company.

246 247 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

SHAREHOLDER INFORMATION

22. Location of Plant and Mines: 23. Investor Correspondence:

Aluminium & Power The Company Secretary Hindalco Industries Limited Renukoot Plant* Renusagar Power Division Hirakud Smelter Ahura Centre, 1st Floor, B Wing P.O. Renukoot -231217 P. O. Renusagar, Dist. Sonebhadra, Hirakud 768 016 Mahakali Caves Road, Andheri (E) Dist Sonebhadra, Uttar Pradesh. Uttar Pradesh. Dist: Sambalpur, Orissa Mumbai: 400093 Tel : (05446) 252077-9 Tel:(05446)277161-3/ 278592-5 Tel: (0663) 2481307/1452 Tel: (91-22) 66917000 Fax: (05446) 252107/426 Fax: (05446) 277164/ Fax: (0663) 2481356 Fax: (91-22) 66917001 Email: [email protected] Hirakud Power Mahan Aluminum Aditya Aluminium Post Box No.12, Hirakud 768 016 Hindalco Industries Limited Hindalco Industries Limited 24. Categories of Shareholding (as on 31st March): Dist: Sambalpur, Orissa NH-75 E, Singrauli, Sidhi Rd, Lapanga, Dist Sambalpur-768212 Tel: (0663) 2481307 P.O Bargawan, Pin:486886 Odisha Category of Shareholders 2021 2020 Fax: (0663) 2481342/365 Dist : Singrauli MP Ph: 0663-2114424 Number % of Number of % share Number % of Number of % share Fax: (0663) 2541642 Tel : 0780-5281014 Fax: 0663-2590434 of Share share Shares held holding of Share share Shares held holding holders holders holders holders Copper Chemicals Promoters* 17 0.00 77,83,39,497 34.64 17 0.01 77,83,39,497 34.65 Birla Copper Division Muri Alumina Belagavi Mutual Funds & UTI 213 0.06 25,55,08,739 11.37 212 0.06 34,50,24,221 15.36 P.O. Dahej, Lakhigam Post Chotamuri-835 101 Village Yamanapur Banks/ Financial Institutions/ 87 0.02 21,21,64,263 9.44 104 0.03 25,43,26,126 11.32 Dist. Bharuch – 392 130, Gujarat Dist: Ranchi, Jharkhand Belgaum 590 010, Karnataka Ins/Govt Tel: (02641) 256004/06, 251009 Phone: (06522) 244253/334 Tel: (0831) 2472716 FIIs 711 0.20 56,17,59,112 25.01 621 0.19 41,96,66,017 18.68 Fax: (02641) 251002 Fax: (06522) 244342 Fax: (0831) 2472728 Corporates 1,776 0.51 12,34,13,264 5.49 2,125 0.64 12,46,75,484 5.55

Sheet, Foil, Wheel, Packaging & Extrusions Individuals/Shares In Transit/ 3,38,181 97.05 13,39,25,040 5.97 3,21,251 96.76 14,31,08,114 6.37 Trust Belur Sheet Taloja Sheet Alupuram Extrusions NRIs/ OCBs/Foreign Nationals 7,484 2.16 3,92,80,733 1.75 7,681 2.31 3,99,20,998 1.78 39, Grand Trunk Road Plot 2, MIDC Industrial Area Alupuram, P.B. No.30 Belurmath 711 202, Dist: Howrah Taloja A.V., Dist : Raigad Kalamassery - 683 104 GDRs 1 0.00 13,64,68,634 6.07 1 0.00 13,52,76,558 6.02 West Bengal Navi Mumbai - 410 208, Maharashtra Dist: Ernakulam, Kerala Shares held by Employee trust 1 0.00 58,24,965 0.26 1 0.00 58,85,672 0.26 Tel: (033) 2654 7210/12 Tel: (022) 2741 2261, 66292929 Tel: (0484) 2532441-48 Total 3,48,471 100 2,24,66,84,247 100 3,32,013 100.00 2,24,62,22,687 100.00 Fax: (033) 2654 9982/5740 Fax: (022) 2741 2430/31 Fax: (0484) 2532468 *Includes GDRs held by Promoter Group Companies. Mouda Unit Hirakud FRP Village Dahali Hindalco Industries Limited 25. Per share data (as per Standalone Financial Statement) Ramtek Road, Mouda Hirakud-768016 Nagpur – 441 1104 Dist- Sambhalpur, Odisha Particulars 2020-2021 2019-20 2018-19 2017-18 2016-17 Tel: (07115) 660777/786 Tel: (0663) 6625000 Net Earnings (Rs. in Crore) 993 620 1,205 1,436 1,557 Fax No(0663) 2481344 Cash Earnings # (Rs. in Crore) 2,841 2,328 2,899 3,053 2,985

Mines Basic EPS (Rs.) 4.46 2.79 5.41 6.45 7.56 Cash EPS (Rs.) ** 12.77 10.47 13.01 13.70 14.49 Durgmanwadi Bauxite Mines Lohardaga Bauxite Mines Samari Bauxite Mines Dividend per share (Rs.) 3.00@ 1.00 1.20 1.20 1.10 At Post Radhanagri, Dist: Kolhapur, Dist: Lohardaga - 835 302 P.O: Kusumi - 497222 Maharashtra - 416 212 Jharkhand Dist : Sarguja ChattisgarhTel/ Dividend pay out (%)## 67.88@ 36.23 26.92 22.58 19.08 Tel: (02321) 2371008 Tel/ Fax: (06526) 224112 Fax(07778)274325 Book Value per share (Rs.) 222.84 202.54 216.24 220.28 211.00 Fax: (02321) 237478 Price to earning (x)* 73.28 34.33 37.99 33.28 25 .80 Gare Palma Mines (IV/4 & V/5) Kathautia Coal Mine Dumri Coal Mine Price to cash earning (x) * 25.59 9.14 15.80 15.66 13.46 Underground Coal Mines Kathautia Open Cast Coal Mine 103, Commerce Tower Price to Book Value (x) * 1.47 0.47 0.95 0.97 0.92 Village & Post Milupura (Koccm), Village Kathautia Near Mahavir Tower, # Net Earnings plus Depreciation and Amortisation and Impairment Loss on Non-current Assets. Tehsil Tamnar P.O Naudiha, PS Pandwa, Main Road, Ranchi - 834001 @ proposed dividend Dist: Raigarh Dist:Palamau Tel: (0651) 2330944/48 * Stock price as on 31st March Chhattisgarh:496107 Jharkhand:822123 Fax: (0651)2330782 ** Cash EPS – Cash Earnings divided by Weighted average numbers of equity shares used in computing basic EPS *Renukoot works has also manufacturing facilities of Chemicals, Sheets and Extrusions. ## For calculation of dividend payout ratio of FY 2018-19, 2017-18 and 2016-17 dividend includes Dividend Distribution Tax.

248 249 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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26. LIST OF CREDIT RATINGS Keeping in view the aforesaid green initiative of MCA, Nil shareholders holding Nil Equity Shares. your Company shall send the Annual Report and other CARE ratings have provided the following ratings for the financial year 2020-2021 Nil Equity Shares in physical form for transmission/ documents to its shareholders in electronic form at the deletion. e-mail address provided by them and made available to Instrument Rating Rating Action us by the Depository. Nil Equity Shares in physical form includes above Long Term Bank facilities-Term Loan Care AA+/Negative Outlook Reaffirmed mentioned Nil Equity Shares. and Fund based facilities Further this year in view of the outbreak of COVID-19 pandemic and owing to the difficulties involved in Entire Outstanding Unclaimed shares in Suspense Long Term / Short term Bank facilities- Care AA+; Negative/ Care A1+ Negative Reaffirmed dispatching of physical copies of Annual Report, the account has been transferred to Investor Education Non Fund based Outlook Ministry of Corporate Affairs (“MCA”) has vide its circular and Protection Fund account established by Central Non Convertible Debenture Care AA+/Negative Outlook Reaffirmed no 20/2020 dated 5 May 2020 and further circular no. F Government. th Commercial Paper Care A1+ Reaffirmed NO. 2/6//2020-CL-V dated 13 January, 2021 directed the Companies to send the Annual Report only by e-mail to Other Information Crisil reaffirmed the Rating as CRISIL AA with “Stable” outlook on April 23, 2020. The same has been revised to CRISIL all the Members of the Company. Therefore, the Annual AA with “Positive” outlook on May 03, 2021 on Non-convertible debentures. Crisil reaffirmed the rating as CRISIL A1+ for Report for FY 2020-21 and notice of AGM is being sent (i) Equity Shares of the Company are under compulsory commercial paper. to the Members at their registered e-mail addresses in demat trading by all investors, with effect from April 05, accordance with MCA and SEBI Circulars. 1999. Considering the advantages of scrip less trading, shareholders are requested to consider dematerialization 27. OTHER USEFUL INFORMATION FOR SHAREHOLDERS of their shareholding so as to avoid inconvenience in Unclaimed Shares in Physical Form Shareholders who have not yet encashed their dividend warrants for the years 2013-2014 to 2019-2020 may approach future. Regulation 39(4) of the Securities and Exchange Board of the Company with a request letter quoting their Ledger Folio numbers / DP & Client ID along with dividend warrant(s) (if BSE has vide circular dated July 05, 2018 informed about India (Listing Obligations and Disclosure Requirements) any) and a cancelled cheque leaf for revalidation/claim. amendment to Regulation 40 of Listing Regulations Regulations, 2015 provides the manner of dealing with mandating the transfer of securities would be carried The details of Dividend paid by the Company and the respective due dates of transfer of unclaimed/un-encashed dividend shares issued in physical form pursuant to public issue to the designated fund of the Central Government is enumerated below: out in dematerialised form only. This restriction shall or any other issue which remains unclaimed with the not be applicable to the request received for Deletion, Company. In compliance with the provisions of Listing Date of Declaration Financial year of Dividend Due date of transfer to the Government Amount in ` Transmission or Transposition of physical shares. (as on 31st March, 2021) Regulations, the Company has sent three reminders to the shareholders whose share certificates are lying (ii) Shareholders/Beneficial Owners are requested to September 24, 2014 2013-2014 October 31, 2021 47,80,856.00 unclaimed. quote their Folio No./DP & Client ID Nos., as the case September 16, 2015 2014-2015 October 23, 2022 57,13,171.49 may be, in all correspondence with the Company. All Disclosures pursuant to Regulation 39(4) of Listing September 14, 2016 2015-2016 October 21, 2023 57,16,647.00 correspondences regarding shares & debentures of the Regulation are as below: Company should be addressed to the Investor Service September 13, 2017 2016-2017 October 20, 2024 66,79,526.90 • Aggregate number of shareholders and outstanding Department of the Company at Ahura Centre, 1st Floor, September 21, 2018 2017-2018 October 27, 2025 70,95,963.60 shares lying in Unclaimed Suspense account lying ‘B’ Wing, Mahakali Caves Road, Andheri (East), August 30, 2019 2018-2019 October 7, 2026 68,25,355.80 as at 1st April, 2020: Mumbai - 400 093 and not to any other office(s) of the Company. September 10, 2020 2019-2020 October 17, 2027 54,06,775.00 737 Shareholders holding 4,22,953 Equity Shares of the Company . (iii) Shareholders holding shares in physical form are Pursuant to the provisions of Investor Education and In case of any query contact – requested to notify to the Company, change in their Protection Fund Authority (Accounting, Audit, Transfer • Number of shareholders who approached the issuer address/Pin Code number and Bank Account details Hindalco Industries limited and Refund) Rules 2016 read with Investor Education and for transfer of shares from Unclaimed Suspense promptly by written request under the signatures of Ahura Centre, 1st floor, B Wing Protection Fund Authority (Accounting, Audit, Transfer Account during the year sole / first joint holder. Beneficial Owners of shares in Mahakali Caves Road demat form are requested to send their instructions and Refund) Amendment 2017, the Company is mandated Andheri (East), Mumbai- 400 093. 5 Shareholders holding 1457 Equity Shares of the regarding change of name, change of address, bank to transfer all such shares to Investor Education Tel: (91-22) 6691 7000 Company and Protection Fund (IEPF) in respect of which dividend details, nomination, power of attorney, etc. directly to Fax: (91-22) 6691 7001 • Number of shareholders to whom shares were has not been claimed for seven consecutive years or their DP. Email ID: [email protected] transferred from Unclaimed Suspense Account more. (iv) To prevent fraudulent encashment of dividend warrants, Green Initiative in Corporate Governance – Service of during the year The unclaimed dividend amount for the financial members are requested to provide their Bank Account Documents in Electronic Form 5 Shareholders holding 1457 Equity Shares of the year 2012-2013 and 10,92,463 Equity Shares related to Details (if not provided earlier) to the Company (if shares Company unclaimed dividend for the financial year have been As you are aware, Ministry of Corporate Affairs are held in physical form) or to DP (if shares are held in demat form), as the case may be, for printing of the same credited to Investor Education and Protection Fund (IEPF). Government of India (MCA) vide its Circular(s) Nos. 17 and 732 Shareholders holding 427,636 Equity Shares st th on their dividend warrants. 18 dated 21 April, 2011 and 29 April, 2011 respectively were transferred to Investor Education and Shareholder can claim the unclaimed dividend amounts has now allowed the companies to send Notices of Protection Fund Account. (v) Non-resident members are requested to immediately and shares credited to IEPF with a separate application General Meetings/other Notices, Audited Financial notify:- made to the IEPF Authority, in Form IEPF-5, as prescribed Statements, Director’s Report, Auditor’s Report etc. • Aggregate number of shareholders and outstanding under the Rules and are available at IEPF website i.e henceforth to their shareholders electronically as a part shares lying in Unclaimed Suspense Account as at • change in their residential status on return to India www.iepf.gov.in. of its Green Initiative in Corporate Governance. 31st March, 2021 for permanent settlement;

250 251 Corporate Performance People and Statutory Financial HINDALCO INDUSTRIES LIMITED Integrated Annual Report 2020-21 Overview Review Governance Reports Statements

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•particulars of their NRE Bank Account with a bank (viii) Shareholders(s) of the Company who have multiple in India, if not furnished earlier. accounts in identical name(s) or holding more than one Share Certificates in the same name under different (vi) In case of loss/misplacement of share certificate, Ledger Folio(s) are requested to apply for consolidation investors should immediately lodge a FIR/Complaint of such Folio(s) and send the relevant Share Certificates with the police and inform to Company along with to the Company. original or certified copy of FIR/acknowledged copy of (ix) Shareholders are requested to give us their the complaint. valuable suggestions for improvement of our investor (vii) Shareholders are requested to keep record of their services. specimen signature before lodgment of shares with the (x) Shareholders are requested to quote their E-mail Ids, Company to obviate possibility of difference in signature Telephone/Fax numbers for prompt reply to their at a later date. communication.

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